District of New Jersey

TRENTON, N.J. – An Ocean County man was sentenced to 72 months’ imprisonment for traveling to Norway to engage in sexual conduct with a 14-year-old victim, Senior Counsel Philip W. Lamparello announced today.

Jacob Bauer, 29, of Toms River, pleaded guilty before U.S. District Judge Robert Kirsch in Trenton federal court on September 9, 2025, to a one-count Information charging him with engaging in illicit sexual conduct in a foreign place. U.S. District Judge Robert Kirsch imposed the sentence today in Trenton federal court.

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

From December 1, 2023 through December 10, 2023, Bauer, then 27 years old, traveled from the United States to Norway to engage in sexual activity with a 14-year-old female in a hotel. After returning to the United States, Bauer communicated with the victim and bragged to others about his sexual activities, all while acknowledging the victim’s age and status as a minor. After learning of Bauer’s sexual activity, members of an online community that Bauer was active in “doxxed” him by publishing his information online.

In addition to the prison term, Judge Kirsch sentenced Bauer to 10 years of supervised release following Bauer’s term of imprisonment and ordered forfeiture of Bauer’s property used to commit the offense. Bauer is also subject to registration under the Sex Offender Registration and Notification Act.

Senior Counsel Lamparello credited the special agents and task force officers of the Federal Bureau of Investigation, under the direction of Special Agent in Charge Stefanie Roddy in Newark, with the investigation leading to the sentence. He also thanked the New Brunswick Police Department, under the direction of Chief of Police Vincent Sabo, the Manchester Township Police Department, under the direction of Chief of Police Antonio Ellis, the FBI Legal Attaché Office, U.S. Embassy, Copenhagen, Denmark, the FBI Legal Attaché Office, U.S. Embassy, Warsaw, Poland, the Jackson County, Georgia Sheriff's Office, INTERPOL, the Norwegian Politiet, Troms District, the Norwegian Politiet, NC3 KRIPOS, and the Poland Policja CBZC, Central Cybercrime Bureau for their assistance.

This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit Justice.gov/PSC.

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

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Defense counsel: Andrea G. Aldana, Esq., Federal Public Defenders.

NEWARK, N.J. – A Chicago man was sentenced to 151 months in prison and five years of supervised release for engaging in a wire and commodities fraud scheme that caused losses of more than $4 million to over a dozen victims, Senior Counsel Philip Lamparello announced.

Philip Galles, 59, of Chicago, Illinois, previously pleaded guilty before U.S. District Court Judge Esther Salas in Newark federal court to an indictment charging him with wire and commodities fraud. Judge Salas imposed the sentence on February 5, 2026. At the conclusion of the sentencing hearing, Judge Salas remanded Galles to the custody of the U.S. Marshal to begin serving his sentence. Galles was also ordered to pay more than $4 million in restitution to victims of the scheme.

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

Galles, a former commodities trader, defrauded his victims by falsely claiming that he would invest their money in commodity futures through his purported investment company, Tyche Asset Management, based in Chicago, Illinois. As part of the scheme, Galles and those working for him falsely told prospective investors that Tyche had a history of success using proprietary trading strategies, with extraordinary annual rates of return exceeding 100%.

But in reality, Galles made virtually no legitimate investments in commodity futures or otherwise. Galles instead ran Tyche like a Ponzi scheme and used investor money to pay back other investors and to pay his own personal expenses—including high-end clothing, rent on a luxury apartment, and luxury automobiles.

During the investigation, Galles met with an undercover agent in New Jersey purporting to be an investment manager looking to make a large investment. Galles repeatedly lied during those meetings about Tyche and his personal history. Galles falsely claimed that Tyche had annual returns of 336%, raised over $2 billion within 60 days of starting the fund, and had prominent investors, including a Kuwaiti sovereign fund and a well-known owner of a professional sports team. Galles also falsely claimed that he graduated from a prominent university in the Midwest. 

Senior Counsel Lamparello credited special agents of the United States Attorney’s Office, under the direction of Acting Special Agent in Charge Matthew Maltese in Newark, and the inspectors of the United States Postal Inspection Service, under the direction of Inspector in Charge Christopher Nielsen, with the investigation. He also thanked the Commodity Futures Trading Commission and the National Futures Association for their role in the investigation.

The government is represented by Assistant U.S. Attorney Carolyn Silane, Chief of the Economic Crimes Unit, and Andrew Kogan of the Cybercrime Unit in Newark.

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Defense counsel: Michael Koribanics, Esq.

NEWARK, N.J. – A New Jersey woman was charged by indictment with five counts of wire fraud for fraudulently obtaining tens of thousands of dollars in unemployment funds while working for the United States Postal Service, Senior Counsel Philip Lamparello announced.

Samantha Jenkins, 45, of North Plainfield, New Jersey, had her arraignment yesterday in Trenton before United States Magistrate Judge Justin T. Quinn.

According to documents filed in this case and statements made in court, for more than a year Jenkins filed weekly certifications with the New Jersey Department of Labor in which she claimed she was not working, and was therefore eligible to receive unemployment benefits.  But in reality, Jenkins worked for the USPS as a window/mail clerk.  As a result, Jenkins received tens of thousands of dollars in employment benefits she was not entitled to.

During the relevant period, Jenkins’s salary from the USPS and her unemployment benefits were deposited into one of her bank accounts.  For 13 months, Jenkins used that bank account to receive both her salary from the USPS and unemployment benefits from the NJDOL.  Oftentimes, deposits from both entities were made just days apart from one another.

Each charge of wire fraud carries a maximum penalty of 20 years in prison, and a fine of $250,000.  Senior Counsel Lamparello credited special agents with the Federal Bureau of Investigation, under the direction of Special Agent in Charge Stefanie Roddy in Newark; special agents with the U.S. Postal Service, Office of Inspector General, Northeast Area Field Office, under the direction of Special Agent in Charge Matthew Modofferi; and special agents of the U.S. Department of Labor, Office of Inspector General, Northeast Region, under the direction of Inspector General Anthony D’Esposito.

The government is represented by Assistant U.S. Attorney Matthew Specht of the Special Prosecutions Division.

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

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Defense counsel:  Saverio Viggiano, Esq., Newark, New Jersey

NEWARK, N.J. B A Vernon, New Jersey company will pay $2.4 million to resolve allegations that it overbilled the United States Postal Service on facilities management contracts, Senior Counsel Phillip Lamparello announced today.

The settlement resolves allegations that from August 1, 2020 through August 12, 2025, Phillips-Glenwood Construction, Inc. made false claims in conjunction with its contract for construction and facilities maintenance of USPS facilities in New Jersey, Pennsylvania, and Delaware.  More specifically, Phillips-Glenwood allegedly submitted to the USPS false and altered documentation inflating its labor hours and materials purchases in its requests for payment for work performed.

Senior Counsel Lamparello credited special agents of the United States Postal Service, Office of Inspector General, under the direction of Special Agent in Charge Colleen Ehlich, for the investigation of the allegations against Phillips-Glenwood.   

The United States is represented by Assistant U.S. Attorney Mark C. Orlowski of the U.S. Attorney’s Health Care Fraud and Opioids Enforcement Unit in Newark.

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Defense Counsel for Phillips-Glenwood is Dennis J. Francis, Esq., Little Ferry, New Jersey.   

NEWARK – A former Florida-based employee of TD Bank, N.A., Leonardo Ayala (“Ayala”), pleaded guilty today to accepting bribes in return for facilitating a money laundering network’s movement of over $5.5 million to Colombia through TD Bank accounts.

Ayala, 25, pleaded guilty today before the Honorable Esther Salas in Newark to a two-count Information charging him with conspiring to launder monetary instruments and for receipt of bribes by a bank employee. He is scheduled to be sentenced on June 11.

According to court filings and statements made in court, from June 2023 to November 2023, Ayala, 25, of Homestead, Florida, then a TD Bank employee in Doral, Florida, accepted bribes and leveraged his position to facilitate a money laundering network’s expatriation of over $5.5 million from the United States to Colombia. Ayala, who bragged about being “tapped in with them Venezuelans,” opened fraudulent bank accounts, issued debit cards, unblocked debit cards that TD Bank had restricted due to questionable activity, and provided other banking services to his co-conspirators. In particular, Ayala issued over 150 debit cards to six business accounts that had been opened by a different TD Bank employee in Scotch Plains, New Jersey. Those debit cards were then used to make over 10,000 ATM withdrawals throughout Colombia, totaling approximately $4,723,114.64. Ayala’s co-conspirators paid him over $6,000 in exchange for these services, typically either in cash or through a peer-to-peer digital payment network.

The charge of money laundering conspiracy carries a maximum penalty of 20 years in prison and a fine of $500,000 or twice the amount involved in the offense, whichever is greater. The charge of receipt of bribes by a bank employee carries a maximum penalty of 30 years in prison and a fine of $1,000,000 or three times the amount involved in the offense, whichever is greater.

The DEA, IRS-CI, and FDIC-OIG investigated the case. The department also thanks the Morristown Police Department for their assistance with the investigation.

Assistant U.S. Attorney Marko Pesce, Chief of the Bank Integrity, Money Laundering, and Recovery Unit for the District of New Jersey and Trial Attorneys D. Zachary Adams and Chelsea Rooney of the Criminal Division’s Money Laundering, Narcotics and Forfeiture Section are prosecuting the case.

The Money Laundering, Narcotics and Forfeiture Section’s Bank Integrity Unit investigates and prosecutes banks and other financial institutions, including their officers, managers and employees whose actions threaten the integrity of the individual institution or the wider financial system.

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Defense counsel: Peter Katz, Esq.

A Florida man pleaded guilty Wednesday to accepting bribes and facilitating the laundering of more than $5.5 million to Colombia while employed by TD Bank, N.A.

According to court filings, Leonardo Ayala, 25, of Homestead, Florida, accepted bribes and exploited his position as a bank employee to help launder drug money to Colombia. From June to Nov. 2023, Ayala opened fraudulent accounts, issued over 150 debit cards to shell companies, and unblocked debit cards that TD Bank had restricted due to questionable activity. The bank accounts and debit cards were then used to make more than 12,000 ATM withdrawals in Colombia, funneling approximately $5.5 million out of the United States. In exchange, Ayala received more than $6,000 in bribes paid in cash and through a peer-to-peer digital payment network. 

Ayala pleaded guilty to a two-count information charging him with conspiring to launder monetary instruments and receipt of bribes by a bank employee. The charge of money laundering conspiracy carries a maximum penalty of 20 years in prison. The charge of receipt of bribes by a bank employee carries a maximum penalty of 30 years in prison. Ayala’s sentencing has been set for June 11. A federal judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Assistant Attorney General A. Tysen Duva of the Justice Department’s Criminal Division and Senior Counsel Philip Lamparello of the U.S. Attorney’s Office for the District of New Jersey made the announcement.

The DEA, IRS Criminal Investigation (IRS-CI) and FDIC-OIG are investigating the case. The department also thanks the Morristown Police Department for their assistance with the investigation.

Trial Attorneys D. Zachary Adams and Chelsea Rooney of the Criminal Division’s Money Laundering, Narcotics and Forfeiture Section and Assistant U.S. Attorney Marko Pesce, Chief of the Bank Integrity, Money Laundering and Recovery Unit for the District of New Jersey are prosecuting the case.

The Money Laundering, Narcotics and Forfeiture Section’s Bank Integrity Unit investigates and prosecutes banks and other financial institutions, including their officers, managers and employees whose actions threaten the integrity of the individual institution or the wider financial system.

NEWARK, N.J. – A Union County man was sentenced to 78 months in prison for receiving and possessing child pornography, Senior Counsel Philip Lamparello announced.

Jack Wilder, 27, of Somerville, New Jersey, previously pleaded guilty before U.S. District Judge Jamel K. Semper in Newark federal court to an information charging him with one count of receipt of child pornography and one count of possession of child pornography.  Judge Semper imposed the sentence on January 27, 2026.

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

In July 2024, when Wilder was a teacher at a school in Plainfield, New Jersey, law enforcement searched Wilder’s cell phone and found child pornography.  Then, in May 2025, when law enforcement arrested Wilder, they found additional child pornography that Wilder received on a second cell phone.

Senior Counsel Lamparello credited the work of the Department of Homeland Security, Homeland Security Investigations Newark, under the direction of Special Agent in Charge Michael S. McCarthy, with the investigation leading up to this sentencing.

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

This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched by the Department of Justice. Led by U.S. Attorneys' Offices and CEOS, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit Justice.gov/PSC.

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Defense counsel:         Michael Baldassare, Esq.

                                          Jeff Hawriluk, Esq.

CAMDEN, N.J. – Yesterday, a Pennsylvania man admitted possessing images of child sexual abuse, Senior Counsel Philip Lamparello announced.

Edwin Isaacson IV, 53, of Matamoras, Pennsylvania, pleaded guilty yesterday before Chief Judge Renée Marie Bumb 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, on April 23, 2025, Isaacson was found at Newark Liberty International Airport after arriving on an inbound international flight in possession of at least 28 videos of prepubescent minors engaged in sexual conduct.

The charge carries a maximum penalty of 20 years in prison, and a fine of $250,000.  Sentencing is scheduled for June 9, 2026.

Senior Counsel Lamparello credited special agents of Homeland Security Investigations Newark, under the direction of Special Agent in Charge Michael S. McCarthy, with the investigation leading to the charges.

The government is represented by Assistant U.S. Attorney Matthew Specht of the Special Prosecutions Division.

This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched by the Department of Justice. Led by U.S. Attorneys' Offices and CEOS, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit Justice.gov/PSC.

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Defense counsel:  David Jay Glassman, Esq., Marlton, New Jersey

NEWARK, N.J. – A Florida man was sentenced to 48 months’ imprisonment for his role as one of the leaders and organizers of large scheme to defraud a national cellular provider that spanned multiple states, Senior Counsel Philip Lamparello announced.

Defendant Arrantes Garrincha Green, a/k/a “Don Gucci,” a/k/a “Gucci,” 47, of Margate, Florida had previously pled guilty to conspiracy to commit wire fraud in connection with his role in the scheme. U.S. District Judge Susan D. Wigenton imposed the sentence on January 28, 2026, in Newark federal court. Seven other defendants have previously been sentenced in connection with the same scheme. Six more have also pleaded guilty in the case and are awaiting sentencing.

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

From June 2015 through June 2017, the defendants and others, led by Green, conspired to steal electronic equipment, including new smartphones, from a national cellular service provider. Members of the conspiracy used stolen personal identifiers, including stolen Social Security numbers, as well as stolen debit and credit card information to place orders with the victim company. Green alone was responsible for placing fraudulent orders for over $200,000 in stolen equipment. Green and others then transmitted anticipated delivery dates and locations of the fraudulently-ordered products to other conspirators who were employed as drivers with a major parcel delivery company. These drivers were paid to divert the products mid-delivery to other members of the conspiracy. Proceeds generated through the scheme were shared by wire transfer or depositing the funds in designated bank accounts. The scheme compromised the identities of hundreds of residents in multiple municipalities across multiple states, including Upper Saddle River, New Jersey, and caused losses in excess of $1.5 million to the victim company.

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

Senior Counsel Lamparello credited special agents of the FBI, under the direction of Special Agent in Charge Stefanie Roddy in Newark, with the investigation leading to the charges. He also thanked the Upper Saddle River Police Department, the Bergen County Prosecutor’s Office, the NYPD, the Westchester County District Attorney’s Office, the West Hartford Police Department and the Connecticut State’s Attorney’s Office, Hartford Judicial District, for their assistance.

The government is represented by Assistant U.S. Attorneys Sammi Malek, Peter Laserna, and Michael Hardin of the Criminal Division in Newark.

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Defense counsel: John McMahon, Esq.

NEWARK, N.J. – An Essex County man pled guilty today to a three-count Information for his online enticement and exploitation of minors, Senior Counsel Philip Lamparello announced.

Abdur-Razzaaq Henderson, 29, of East Orange, New Jersey, pleaded guilty before U.S. District Court Judge Katharine S. Hayden, in Newark federal court, to an Information charging him with two counts of producing child pornography and one count of possessing prepubescent child pornography.

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

In April 2023 and July 2023, respectively, Henderson texted with two different minor victims located outside of New Jersey.  On both occasions, at Henderson’s request, the minor victims created and texted him videos of themselves engaging in sexually explicit conduct. Additionally, Henderson engaged the second minor victim in a conversation about sexually assaulting a younger sibling.

On March 5, 2024, law enforcement found Henderson with a cell phone that contained multiple videos depicting child pornography in the “Hidden” folder among his photos.

In his plea agreement, Henderson also accepted responsibility for enticing seven additional minor victims to produce sexually explicit material.

The production of child pornography charges are each punishable by a mandatory minimum penalty of 15 years in prison and a maximum potential penalty of 30 years in prison and a $250,000 fine.  The prepubescent child pornography possession charge is punishable by up to 20 years in prison and a $250,000 fine.

Senior Counsel Lamparello credited special agents of the Federal Bureau of Investigation, under the direction of Special Agent in Charge Stefanie Roddy, with the investigation.

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

This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched by the Department of Justice. Led by U.S. Attorneys' Offices and CEOS, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit Justice.gov/PSC.

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Defense counsel: John Yauch, Esq.

CAMDEN, N.J. – A Jersey City man admitted to engaging in a conspiracy to burglarize logistics warehouses and transport the stolen goods, Senior Counsel Philip W. Lamparello announced.

Derek Spivey, 37, of Jersey City, New Jersey, pleaded guilty before U.S. District Judge Edward S. Kiel to an information charging him with one count of conspiring to transport stolen goods.  Spivey also pleaded guilty to violating the conditions of his supervised release from a prior conviction for possessing a firearm as a felon.

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

Spivey conspired with Jamil Bethea, Jamal Reid, Rasheed Sharpe, and others to burglarize trailers at logistics warehouses in New Jersey and Pennsylvania, transport the goods stolen from those warehouses, and sell the stolen goods to others.  As part of the conspiracy, burglars stole $50,000 of Department of Defense laptops from a Pennsylvania warehouse in January 2025; $200,000 of high-end perfume from a Pennsylvania warehouse in March 2025; and $20,000 of liquor from a New Jersey warehouse in March 2025.  Spivey and his co-conspirators then transported stolen goods into and through New Jersey for the purpose of selling them.

The count of conspiracy carries a maximum penalty of 5 years in prison and a fine of up to $250,000, or twice the gross loss to the victim or gain to the defendant, whichever is greatest.  Sentencing is scheduled for June 1, 2026.

Bethea, Reid, and Sharpe previously pleaded guilty for their roles in the conspiracy and are scheduled to be sentenced later this year.

Senior Counsel Lamparello credited agents of the Federal Bureau of Investigation, Atlantic City Resident Agency, under the direction of Special Agent in Charge Stefanie Roddy in Newark, with the investigation leading to this plea.  He also thanked the Federal Bureau of Investigation’s Philadelphia Field Division with its assistance in the investigation.

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

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Defense counsel: Thomas Young, Esq., Assistant Federal Public Defender 

NEWARK/TRENTON/CAMDEN, N.J. – A federal jury found the former Mayor of Willingboro Township and another individual guilty yesterday of mortgage fraud in connection with a fraudulent short sale of real estate, Senior Counsel Philip Lamparello announced.

Nathaniel Anderson, 59, a town councilman and the former Mayor of Willingboro in Burlington County, New Jersey, and his business associate Chrisone D. Anderson, 58, of Sicklerville, New Jersey, were each convicted of one count of conspiracy to commit wire fraud affecting a financial institution, one count of bank fraud, and two counts of making a false statement on a mortgage application.

The jury deliberated for approximately two-and-one-half hours before returning verdicts following a two-week trial before U.S. District Judge Robert Kirsch in Trenton federal court.  A federal grand jury indicted both defendants on August 22, 2024.

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

From March 2015 through June 2017, Nathaniel Anderson and Chrisone D. Anderson conspired to orchestrate a fraudulent short sale of a property in Willingboro from Nathaniel Anderson to Chrisone D. Anderson.

As part of the conspiracy to defraud a government-sponsored enterprise to discharge a mortgage obligation on Nathaniel Anderson’s property in Willingboro and to induce a mortgage lending business to issue a new mortgage on the property, Chrisone D. Anderson executed mortgage documents containing materially false representations. These misrepresentations included that the short sale was an arm’s length transaction, that Chrisone D. Anderson did not have a prior business relationship with Nathaniel Anderson, that Nathaniel Anderson would not continue to occupy the property as his residence following the short sale, and that Chrisone D. Anderson would occupy the property as her primary residence.

As a result of the fraudulent short sale, the government-sponsored enterprise discharged Nathaniel Anderson’s mortgage obligation, causing a total loss of over $200,000, and the victim lender issued a new mortgage on the property.

The charges of conspiracy to commit wire fraud affecting a financial institution, bank fraud, and making false statements on a loan application are each punishable by a maximum potential penalty of 30 years in prison and a maximum fine of up to $1 million. Sentencing is scheduled for June 1, 2026 before Judge Kirsch.

Senior Counsel Lamparello credited special agents of the FBI, Newark Division, Trenton Resident Agency, under the direction of Special Agent in Charge Stefanie Roddy in Newark; and special agents of the Northeast Region of the Federal Housing Finance Agency, Office of the Inspector General, under the direction of Special Agent in Charge Robert Manchak, with the investigation leading to the charges.

The government is represented by Assistant U.S. Attorney Joseph McFarlane of the Special Prosecutions Division, and Assistant U.S. Attorney Andrew M. Trombly, Chief of the Cybercrime Unit in Newark.

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Defense counsel: Troy Archie, Esq. (Chrisone D. Anderson)

                            Andrea Aldana and Adalgiza Nunez (Nathaniel Anderson)

NEWARK, N.J. – A couple who purportedly owned two New Jersey businesses were indicted on charges that they fraudulently obtained hundreds of thousands of dollars in federal Paycheck Protection Program (PPP) loans, Senior Counsel Philip Lamparello announced.

Sabrina Mitlo, 41, and Joseph Mitlo, 40, both formerly of Piscataway, New Jersey, are each charged with one count of conspiracy to commit bank fraud.  They made their initial appearances on January 20, before U.S. Magistrate Judge James B. Clark, III in Newark federal court and were released on $100,000 unsecured bond.

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

From May 2020 through July 2020, Sabrina and Joseph Mitlo engaged in a scheme to illegally obtain over $715,000 in PPP loans on behalf of businesses located in New Jersey that they purportedly owned but which had no employees or payroll.  To do so, the Mitlos submitted fraudulent loan applications falsely representing that their businesses had employees and payroll obligations, which included falsified tax documents purporting to show that the businesses had paid wages in prior years.  Once the PPP loans were issued into the business bank accounts, in order to obtain the loan proceeds while keeping the scheme a secret, the Mitlos arranged for a payroll service to issue payroll checks to purported employees of the businesses that did not, in fact, work for the businesses.  Once the Mitlos obtained those payroll checks, Sabrina Mitlo personally cashed them at a check cashing facility and kept the proceeds.

The count of conspiracy to commit bank fraud carries a maximum penalty of 30 years in prison and a maximum fine of $1 million, or twice the gross gain to the defendant or gross loss to the victim, whichever is greatest.

Senior Counsel Lamparello credited with the investigation special agents of the FBI’s Newark Field Office, under the direction of Special Agent in Charge Stefanie Roddy; and special agents and attorneys of the Small Business Administration, Office of Inspector General, under the direction of Special Agent in Charge Amaleka McCall-Brathwaite, Eastern Regional Office in New York.

The government is represented by Assistant U.S. Attorney Robert L. Toll of the U.S. Attorney’s Office’s Health Care Fraud & Opioids Enforcement Unit in Newark.

The District of New Jersey COVID-19 Fraud Enforcement Strike Force is one of five strike forces established throughout the United States by the U.S. Department of Justice to investigate and prosecute COVID-19 fraud. The strike forces focus on large-scale, multi-state pandemic relief fraud perpetrated by criminal organizations and transnational actors. The strike forces are interagency law enforcement efforts, using prosecutor-led and data analyst-driven teams designed to identify and bring to justice those who stole pandemic relief funds.

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

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

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NEWARK, N.J. – A Bergen County woman admitted to embezzling more than $544,000 from a residential facility located in Maywood, New Jersey where she was employed, Senior Counsel Philip Lamparello announced.

Elaine Benanti, 69, of Garfield, New Jersey, pleaded guilty before U.S. District Judge Madeline Cox Arleo, on January 20, 2026, to embezzling, stealing, and obtaining by fraud more than $544,000 of funds belonging to and under the care, custody and control of the Maywood Senior Citizens Housing Corporation (MSCHC) which operated Lydecker Manor, in Maywood, New Jersey, in violation of Title 18, United States Code, Section 666(a)(1)(A).

According to the documents filed in this case and statements by the defendant in open court: 

From in or about January 2017 through in or about December 2021, Benanti served as the Managing Director of Lydecker Manor, a residential facility with approximately 136 units that provided housing for individuals over 62 or with disabilities.  Benanti’s responsibilities included supervising Lydecker employees, providing information to the U.S. Department of Housing and Urban Development (HUD), which provided significant funding for Lydecker Manor, and paying Lydecker Manor’s bills.  Benanti also issued salary and bonus checks to herself and at least four other Lydecker employees in amounts set by Lydecker Manor’s Board of Trustees. 

Benanti admitted that she issued salary checks that significantly exceeded the amounts the Board approved on an annual basis, including checks to herself and four other employees.  For example, Benanti admitted that, in 2021, she issued salary payments to herself exceeding her approved annual salary of $132,613.00 by more than $40,000.00, and that she inflated her approved bonus for the prior year by more than $2,500.00. She also admitted that she issued salary, bonus, and retirement account checks that exceeded the Board’s approved amounts for four other employees from 2017 through 2021.  She further admitted to issuing a supplemental insurance payment to a relative who was not employed by Lydecker Manor.

In total, Benanti admitted to embezzling approximately $544,289.95 from Lydecker Manor via these various means.  As part of her plea agreement with the Government, Benanti agreed to forfeit this amount.   

The embezzlement charge is punishable by a maximum potential penalty of 10 years in prison and a maximum $250,000 fine.  Sentencing is scheduled for June 23, 2026.

Senior Counsel Philip Lamparello credited special agents with the Federal Bureau of Investigation, under the direction of special agent in charge Stefanie Roddy in Newark as well as special agents with the Office of Inspector General with the United States Department of Housing and Urban Development, Northeast Region, under the direction of special agent in charge Shawn Rice.

The government is represented by Assistant U.S. Attorney Mark J. McCarren of the Office’s Special Prosecutions Division in Newark.

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Defense counsel: Anthony J. Iacullo, Esq., Roseland

NEWARK, N.J. – A Hunterdon County, New Jersey man made his initial appearance on January 23, 2026 following his arrest on charges of wire fraud and money laundering in connection with a scheme involving liquor licenses, Senior Counsel Philip Lamparello announced.

Sameh Aboelata, 50, of Raritan Township, New Jersey, was charged in a four-count criminal complaint with one count of wire fraud and three counts of money laundering.  Aboelata had his initial appearance before United States Magistrate Judge James B. Clark, III in Newark federal court.

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

As alleged, between 2016 and 2023, Aboelata obtained more than $17 million from a victim investor by claiming he would use the victim’s money to acquire and maintain liquor licenses.  In reality, Aboelata used the money to line his own pockets, including for casino-related transactions, transfers or checks to family members or associates, rental payments for Aboelata’s restaurant, and transfers to other related bank accounts.  Financial records show that only several thousand dollars of the $17 million was actually used to acquire and maintain liquor licenses.    

The charge of wire fraud carries a maximum penalty of 20 years in prison and a fine of $250,000, or twice the gross amount of any pecuniary gain that anyone derived from the offense or of any pecuniary loss sustained by any victims of the offense, whichever is greatest. Each charge of money laundering carries a maximum penalty of 10 years in prison and a fine of $250,000 or twice the amount of criminally derived property involved in the transaction, whichever is greater.

Senior Counsel Philip Lamparello credited agents of the IRS Criminal Investigation Newark Field Office, under the direction of Special Agent in Charge Jenifer L. Piovesan, and the U.S. Postal Inspection Service’s Philadelphia Division, under the direction of Inspector in Charge Christopher Nielsen, with the investigation leading to the charges.  He also thanks the USPIS Newark Division, Homeland Security Investigations Newark, and Raritan Township Police Department for their assistance with the investigation.

The Government is represented by Assistant United States Attorneys Rachelle M. Navarro and Mark Pesce of the Bank Integrity, Money Laundering, and Recovery Unit in Newark.

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

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Defense counsel: Rahul Sharma, Esq., Assistant Federal Public Defender, Newark

NEWARK – A former New Jersey-based employee of TD Bank, N.A., Oscar Marcel Nunez-Flores (“Nunez”), pleaded guilty today to accepting bribes in return for facilitating a money laundering network’s movement of over $26 million to Colombia through TD Bank accounts.

Nunez, 34, of North Plainfield, New Jersey, pleaded guilty before the Honorable Esther Salas to a two-count Information charging him with conspiring to launder monetary instruments and for receipt of bribes by a bank employee. He is scheduled to be sentenced on May 27.

“This case shows how complex money laundering schemes often depend on insiders who are willing to bend—or break—basic safeguards. Our office will continue to identify, investigate, and prosecute those who turn financial institutions into vehicles for large-scale criminal activity.”

- Senior Counsel Philip Lamparello

“Mr. Nunez afforded his co-conspirators unfettered access to TD Bank, while lining his own pockets in the process, and has been held to account, as will be others who abuse the financial system,” said Assistant Attorney General A. Tysen Duva. “The Criminal Division is committed to protecting the security of our financial system and the Bank Integrity Unit is at the vanguard of that critical mission.”

According to court filings and statements in court, beginning in March 2021 and continuing until his arrest in October 2023, Nunez, then a TD Bank employee in Scotch Plains, New Jersey, accepted bribes and leveraged his position to facilitate a money laundering network’s expatriation of over $26 million from the United States to Colombia. Through the course of his scheme, Nunez opened dozens of accounts in the names shell companies with nominee owners. Nunez knew that the purported owners were not actually controlling the accounts and, in fact, often opened the accounts without any customer present whatsoever. The accounts Nunez opened in furtherance of the scheme were collectively issued over 600 debit cards, primarily by Nunez himself. These debit cards were then used to make over 120,000 withdrawals at ATMs throughout Colombia.

Nunez also participated in the conspiracy in other ways. For example, after issuing debit cards to a fraudulent account, he shipped them directly to a co-conspirator in Colombia. Additionally, Nunez registered shell companies in New Jersey and then opened accounts in their names at TD Bank in furtherance of the money laundering scheme. Nunez opened these accounts in exchange for a fee ranging from approximately $500 to $2,500, which was typically paid either in cash or through a peer-to-peer digital payment network.

The charge of money laundering conspiracy carries a maximum penalty of 20 years in prison and a fine of $500,000 or twice the amount involved in the offense, whichever is greater. The charge of receipt of bribes by a bank employee carries a maximum penalty of 30 years in prison and a fine of $1,000,000 or three times the amount involved in the offense, whichever is greater.

The U.S. Drug Enforcement Administration (DEA), IRS-Criminal Investigation (IRS-CI), and the Federal Deposit Insurance Corporation Office of Inspector General (FDIC-OIG) investigated the case. The Department also thanks the Morristown Police Department, the U.S. Attorney’s Office for the District of Puerto Rico, and the U.S. Attorney’s Office for the Western District of Washington for their assistance with the investigation.

Assistant U.S. Attorney Marko Pesce, Chief of the Bank Integrity, Money Laundering, and Recovery Unit for the District of New Jersey and Trial Attorneys D. Zachary Adams and Chelsea Rooney of the Criminal Division’s Money Laundering, Narcotics and Forfeiture Section are prosecuting the case.

The Money Laundering, Narcotics and Forfeiture Section’s Bank Integrity Unit investigates and prosecutes banks and other financial institutions, including their officers, managers and employees whose actions threaten the integrity of the individual institution or the wider financial system.

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Defense counsel: Peter Katz, Esq.

NEWARK, N.J. – A Paterson, New Jersey, doctor was sentenced to a term of 87 months in prison and three years of supervised release for conspiring to distribute opioids without a legitimate medical reason, Senior Counsel Philip Lamparello announced.

“Physicians are entrusted with extraordinary power over the lives and health of their patients. When a physician abandons that duty and instead fuels opioid addiction for profit, the damage ripples far beyond a single exam room and into entire communities. This sentence reflects the seriousness of that breach of trust and sends a clear message: medical licenses are not shields for criminal conduct, and doctors who help drive the opioid epidemic will be held accountable.”

- Senior Counsel Philip Lamparello

Lisa Ferraro, 67, of Hillsdale, New Jersey, previously pleaded guilty before U.S. District Judge Susan D. Wigenton in Newark federal court to one count of knowingly and intentionally conspiring and agreeing with others, to distribute oxycodone, a Schedule II controlled substance, outside the usual course of professional practice and not for a legitimate medical purpose.

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

From January 2019 to September 23, 2023, Ferraro, who practiced internal medicine in Paterson until her arrest in October 2023, participated in a conspiracy to prescribe oxycodone, an opioid pain medication, to individuals who posed as patients, but whom Ferraro never physically examined or questioned about symptoms to determine whether there was a legitimate medical need for prescribing oxycodone. Over the course of the conspiracy, Ferraro wrote prescriptions for tens of thousands of 30mg oxycodone pills.

Senior Counsel Lamparello credited special agents and members of the Federal Bureau of Investigation, under the direction of Special Agent in Charge Stefanie Roddy in Newark, with the investigation.

The government is represented by Assistant U.S. Attorney Aaron L. Webman, Deputy Chief of the Economic Crimes Unit in Newark.

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Defense counsel: Linda George, Hackensack, NJ

NEWARK, N.J. – A Passaic County man was sentenced to 144 months’ imprisonment for his role as a member of a drug trafficking organization responsible for the importation and distribution of hundreds of kilograms of fentanyl analogues, Senior Counsel Philip Lamparello announced.

Defendant William Panzera, 53, of North Haledon, New Jersey was previously convicted of drug trafficking conspiracy and international promotional money laundering conspiracy by a jury in Newark, New Jersey. U.S. District Judge Susan D. Wigenton imposed the sentence today in Newark federal court. Eight other defendants have previously pleaded guilty in the case and are awaiting sentencing.

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

From approximately January 2014 through September 2020, William Panzera and other members of the drug trafficking organization agreed to import and distribute various controlled substances and controlled substance analogues, including fentanyl analogues, MDMA, methylone, and ketamine. Members of the conspiracy placed orders with a source in China and agreed to distribute, and did distribute, the controlled substances and analogues in New Jersey, both in bulk and in the form of counterfeit pharmaceutical pills that actually contained fentanyl analogues. In total, they imported over a metric ton of fentanyl related substances and other drugs into the United States. They also sent hundreds of thousands of dollars to China using wire transfers and Bitcoin to pay for the drugs.

In addition to the prison term, Judge Wigenton sentenced Panzera to 5 years of supervised release.

Senior Counsel Philip Lamparello of the New Jersey U.S. Attorney’s Office and Assistant Attorney General A. Tysen Duva of the Justice Department’s Criminal Division made the announcement. Senior Counsel Lamparello credited special agents of Homeland Security Investigations (“HSI”) – Newark, under the direction of Special Agent in Charge Michael S. McCarthy, with the investigation leading to today’s guilty plea. He also thanked U.S. Customs and Border Protection in New Jersey, New York, and Kentucky, HSI in Philadelphia, the Federal Bureau of Investigation – Newark Division, U.S. Postal Inspection Service in Newark, IRS-Criminal Investigation, the Newark Police Department, and the Essex County Prosecutor’s Office for their assistance.

The government is represented by Assistant U.S. Attorney Sammi Malek and Special Assistant U.S. Attorney Alexander Hasapidis-Sferra of the Criminal Division in Newark and Trial Attorney Stephen Sola, Chief of the Money Laundering and Forfeiture Unit of the Justice Department’s Money Laundering and Asset Recovery Section. Financial Investigator Kathryn Montemorra of the MLARS Special Financial Investigations Unit supported the investigation. The case is being prosecuted jointly by the United States Attorney’s Office, District of New Jersey and the Money Laundering and Asset Recovery Section (MLARS) of the United States Department of Justice.

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Defense counsel: Jeffrey G. Garrigan, Esq.

TRENTON, N.J. – Today, a Middlesex County, New Jersey, man was sentenced to 15 years in prison and 15 years of supervised release for receiving and possessing images and videos depicting child pornography, Senior Counsel Philip Lamparello announced.

Jeremy Greenwald, 47, of South Amboy, New Jersey, previously pleaded guilty before U.S. District Court Judge Zahid N. Quraishi in Trenton federal court to a two-count information charging him with receipt and possession of child pornography.

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

From May 2022 through February 2023, Greenwald used an online chat application to communicate with a minor victim located outside of New Jersey. Greenwald persuaded the minor victim to create and send Greenwald images and videos of her engaging in sexually explicit conduct. On multiple occasions, Greenwald directed the minor victim to perform certain sexual acts using items Greenwald had purchased and sent the minor victim to use during the videos, including sex toys and costumes, and Greenwald paid the minor victim a nominal amount for these images and videos. A search of Greenwald’s electronic devices revealed additional videos and images of child pornography, including depictions of prepubescent children engaged in sexual acts.

Senior Counsel Lamparello credited special agents of the Federal Bureau of Investigation, specifically those working on the FBI Newark Child Exploitation and Human Trafficking Task Force, under the direction of Special Agent in Charge Stefanie Roddy, with the investigation.

This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section (CEOS) in the Justice Department’s Criminal Division, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit: https://www.justice.gov/psc

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

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Defense counsel: Michael Chazen, Esq., Freehold, New Jersey

United States Attorney Lesley A. Woods announced that Dylan Michael Joseph Hoffman, 34, of Council Bluffs, Iowa, was sentenced on January 7, 2026, in federal court in Omaha, Nebraska, for escape from custody. United States District Court Judge Brian C. Buescher sentenced Hoffman to 18 months’ imprisonment. There is no parole in the federal system. After Hoffman’s release from prison, he will begin a three-year term of supervised release.

In August 2021, Hoffman was sentenced to serve 63 months’ imprisonment in the custody of the U.S. Bureau of Prisons (BOP) by the U.S. District Court for the Southern District of Iowa following his conviction for prohibited person in possession of a firearm and ammunition. In February 2025, while serving that custodial sentence, BOP transferred Hoffman to Dismas Charities Residential Reentry Center (Dismas) in Omaha, Nebraska. Dismas assigned Hoffman to home confinement at an area residence, but, after Hoffman was ordered to return to Dismas on May 4, 2025, he failed to do so. Hoffman was given multiple opportunities to return to Dismas as directed, but he failed to return and ultimately disabled his BOP electronic location monitoring system. Several days later, the United States Marshals Service was able to locate Hoffman in Council Bluffs and return him to custody.

This case was investigated by the United States Marshals Service.

NEWARK, N.J. – Four Amtrak employees admitted participating in a health care fraud scheme to defraud Amtrak, Senior Counsel Philip Lamparello announced.

Yesterday, Timothy Bogen, 60, of Hamden, Connecticut, pleaded guilty before U.S. District Judge Madeline Cox Arleo in Newark federal court to an Indictment charging him with conspiracy to commit health care fraud.  Between June 2025 and October 2025, Quinton Johnson, 54, of Irvington, New Jersey; Gregory Richardson, 36, of Roosevelt, New York; and Dion Jacob, 51, of Brooklyn, New York also pleaded guilty before Judge Arleo in Newark federal court to the same Indictment.

The Indictment also charged six other co-conspirators who previously pleaded guilty to the Indictment between January 2025 and May 2025: Kevin Frink, 54, of Willingboro, New Jersey; Michael Toal, 35, of Hazlet, New Jersey; David McBrien, 37, of Levittown, Pennsylvania; Damany Walker, 42, of Irvington, New Jersey; David Lonergan, 65, of Rockaway Park, New York; and Rodolfo Rivera, 42, of Clayton, Delaware.  McBrien, Walker, Frink, and Richardson have each been sentenced to two years’ federal probation, all others are pending sentencing.

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

From January 2019 through June 2022, Bogen, Johnson, Richardson, Jacob, and their co-conspirators—who were also Amtrak employees—engaged in a scheme to obtain cash kickbacks from health care providers in return for their agreement to allow their health insurance plan to be billed for services that were never provided and were not medically necessary. In total, as a result of the conspiracy, the Amtrak health care plan paid over $11 million in fraudulent claims associated with providers connected to the scheme.

Each defendant received thousands of dollars in cash kickbacks from health care providers in return for their participation in the scheme, including from Punson Figueroa, an acupuncturist, and Michael DeNicola, a podiatrist. Figueroa previously pleaded guilty to conspiracy to commit health care fraud and was sentenced on September 24, 2024 to 34 months in prison. DeNicola previously pleaded guilty on June 29, 2022 to conspiracy to commit health care fraud, among other offenses. His sentencing remains pending.

The health care fraud conspiracy charge carries a maximum potential penalty of 10 years in prison and a $250,000 fine. Bogen’s sentencing is scheduled for June 25, 2026, Jacob’s sentencing is scheduled for February 18, 2026, and Johnson’s sentencing is scheduled for March 24, 2026.

Senior Counsel Lamparello credited special agents of the Amtrak Office of Inspector General, under the direction of Special Agent in Charge Michael J. Waters, the Amtrak Police Department, under the direction of Chief of Police Sam Dotson, and special agents of the Drug Enforcement Administration, under the direction of Special Agent in Charge Frank A. Tarentino III in New York, with the investigation leading to today’s guilty plea.

The government is represented by Assistant U.S. Attorney Katherine M. Romano, Chief of the General Crimes Unit, and Assistant U.S. Attorney Jessica R. Ecker, of the Health Care Fraud and Opioids Enforcement Unit.  

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Defense counsel:  Michael Rubas, Esq. (for Timothy Bogen)

                              John McMahon, Esq. (for Quinton Johnson)

                              Julian Wilsey, Esq. (for Dion Jacob)

                              Christopher Adams, Esq. (for Gregory Richardson)

A former New Jersey-based employee of TD Bank, N.A., Oscar Marcel Nunez-Flores (Nunez), pleaded guilty today to accepting bribes in return for facilitating a money laundering network’s movement of over $26 million to Colombia through TD Bank accounts.

“The defendant afforded his co-conspirators unfettered access to TD Bank, while lining his own pockets in the process,” said Assistant Attorney General A. Tysen Duva of the Justice Department’s Criminal Division. “Our financial professionals are vital gatekeepers against money laundering and other crimes in the financial services industry. The Criminal Division will hold banking professionals who abuse their positions to account to ensure the protection of our financial system.”

“This case shows how complex money laundering schemes often depend on insiders who are willing to bend — or break — basic safeguards,” said Senior Counsel Philip Lamparello.  “Our office will continue to identify, investigate, and prosecute those who turn financial institutions into vehicles for large-scale criminal activity.”

“Transnational criminal organizations exploit borders, geography, and communities but they cannot exploit our resolve,” said Special Agent in Charge Michael A. Miranda of the Drug Enforcement Administration (DEA) Caribbean Field Division. “In the DEA Caribbean Field Division, we intercept threats before they reach American streets. This is not regional work. This is national security. Our agents, analysts, and partners stand on that front line every day with discipline, courage, and purpose.”

“By exploiting his position at TD Bank for his own gain, Mr. Nunez enabled the movement of millions of illicit dollars overseas,” stated Special Agent in Charge Jenifer L. Piovesan of the IRS Criminal Investigation (IRS-CI) Newark Field Office. “This case underscores the critical role IRS-CI and our law enforcement partners play in dismantling complex financial schemes that threaten the integrity of our banking system.” 

“The defendant in this case abused his position as an employee at TD Bank by accepting bribes in return for enabling a money laundering network’s movement of millions of dollars from the United States to Columbia,” said Special Agent in Charge Patricia Tarasca of the Federal Deposit Insurance Corporation Office of Inspector General (FDIC OIG), New York Region. “The FDIC OIG, alongside our law enforcement partners, will continue to investigate and hold accountable bank insiders who violate their positions of trust and commit financial crimes that threaten the safety and soundness of our Nation’s banks.”

According to court filings, beginning in March 2021 and until his arrest in October 2023, Nunez, 34, of Plainfield, New Jersey, then a TD Bank employee in Scotch Plains, New Jersey, accepted bribes and leveraged his position to facilitate a money laundering network’s expatriation of over $26 million from the United States to Colombia. Nunez opened dozens of accounts in the names of shell companies and often opened the accounts without any purported customer present. The accounts Nunez opened for laundering received over 600 debit cards, which Nunez largely issued himself. These debit cards were used to make over 120,000 withdrawals at ATMs throughout Colombia. Nunez also shipped debit cards directly to a co-conspirator in Colombia. He also registered shell companies in New Jersey and then opened accounts in their names at TD Bank in exchange for a fee ranging from approximately $500 to $2,500, which was typically paid either in cash or through a peer-to-peer digital payment network.

Nunez pleaded guilty to a two-count information charging him with conspiring to launder monetary instruments and for receipt of bribes by a bank employee. He is scheduled to be sentenced on May 27.

The charge of money laundering conspiracy carries a maximum penalty of 20 years in prison and a fine of $500,000 or twice the amount involved in the offense, whichever is greater. The charge of receipt of bribes by a bank employee carries a maximum penalty of 30 years in prison and a fine of $1,000,000 or three times the amount involved in the offense, whichever is greater.

The DEA, IRS Criminal Investigation (IRS-CI), and FDIC-OIG investigated the case. The department also thanks the Morristown Police Department, the U.S. Attorney’s Office for the District of Puerto Rico and the U.S. Attorney’s Office for the Western District of Washington for their assistance with the investigation.

Trial Attorneys D. Zachary Adams and Chelsea Rooney of the Criminal Division’s Money Laundering, Narcotics and Forfeiture Section and Assistant U.S. Attorney Marko Pesce, Chief of the Bank Integrity, Money Laundering, and Recovery Unit for the District of New Jersey are prosecuting the case.

The Money Laundering, Narcotics and Forfeiture Section’s Bank Integrity Unit investigates and prosecutes banks and other financial institutions, including their officers, managers and employees whose actions threaten the integrity of the individual institution or the wider financial system.

A New Jersey man was sentenced today to 12 years in prison following his conviction for drug trafficking conspiracy and international promotional money laundering conspiracy.

According to court documents and statements made in court, William Panzera, 53, of North Haledon, was a member of a drug trafficking organization responsible for the importation and distribution of hundreds of kilograms of fentanyl analogues. Panzera and other members of the conspiracy agreed to import and distribute controlled substances and analogues, including fentanyl analogues, MDMA, methylone and ketamine. The co-conspirators placed orders with a source in China and agreed to distribute, and did distribute, the controlled substances and analogues in New Jersey, both in bulk and in the form of counterfeit pharmaceutical pills that actually contained fentanyl analogues. In total, they imported over a metric ton of fentanyl-related substances and other drugs into the United States. They also sent hundreds of thousands of dollars to China using wire transfers and Bitcoin to pay for the drugs.

Panzera was convicted at trial in January 2025. Eight other defendants have previously pleaded guilty in related cases.

Assistant Attorney General A. Tysen Duva of the Justice Department’s Criminal Division and Senior Counsel Philip Lamparello of the U.S. Attorney’s Office for the District of New Jersey made the announcement.

The Newark Field Division of Immigrations and Customs Enforcement Homeland Security Investigations (HSI) led the investigation, with assistance from HSI in Philadelphia, the FBI Newark Field Office, U.S. Postal Inspection Service Newark Field Office, IRS-Criminal Investigation, U.S. Customs and Border Protection in New Jersey, New York and Kentucky, the Newark Police Department and the Essex County Prosecutor’s Office.

This case is being prosecuted by Deputy Chief Stephen Sola of the Criminal Division’s Money Laundering, Narcotics and Forfeiture Section (MNF) and Assistant U.S. Attorney Sammi Malek and Special Assistant U.S. Attorney Alexander Hasapidis-Sferra for the District of New Jersey. Financial Investigator Kathryn Montemorra of MNF supported the investigation.

NEWARK, N.J. –  On January 13 and January 14, 2026, the last two defendants in the Stephen Crane Village drug trafficking case – the enforcer who murdered one of their own and the main drug supplier – were sentenced to 540- and 211-months’ imprisonment, respectively, for their roles in the organization, Senior Counsel Philip Lamparello announced.

In January 2025, following a three-week trial before U.S. District Court Judge Julien X. Neals in Newark federal court, Michael Mayse, 39, and Gary Shahid, 67, both of Newark, were convicted of drug trafficking conspiracy and related drug and firearms offenses.  Mayse was also convicted of murder in relation to the drug trafficking conspiracy.

“These sentences hold accountable two senior members of a violent drug trafficking organization that ruled Stephen Crane Village through fear, violence, and murder. They deliver justice for the family of a young man whose life was senselessly taken and underscore this Office’s commitment to attacking violent crime wherever it exists.  We will continue to protect the people of New Jersey by aggressively pursuing violent criminals and removing them from our streets.”

- Senior Counsel Philip Lamparello

According to court documents and evidence presented at trial:

Stephen Crane Village is a public housing complex near Branch Brook Park, on the border of Newark, New Jersey and Belleville, New Jersey. Stephen Crane Village was the site of an open-air drug market controlled by a violent drug trafficking organization (DTO) from at least February 2019 through February 2020.

Through numerous controlled drug purchases, recorded telephone calls and text messages, physical surveillance, electronic surveillance, and analysis of telephone call detail records, law enforcement determined that the members of the DTO conspired to distribute narcotics, including heroin, fentanyl, and cocaine base, at Stephen Crane Village.

The DTO used a stash apartment to package and store drugs for distribution. The DTO sold significant quantities of drugs to confidential sources and an undercover agent. In the early morning of December 15, 2019, Mayse entered the DTO’s stash apartment and murdered a 21-year-old member of the DTO over a drug debt.

On January 13, 2026, the Court sentenced Shahid to 151 months’ imprisonment for the drug trafficking conspiracy and drug trafficking offenses, to run concurrent to 60 months for his possession of a firearm as a previously convicted felon, and consecutive to an additional 60 months’ imprisonment for his possession of a firearm in furtherance of his drug trafficking, for a cumulative sentence of 211 months in prison.

On January 14, 2026, the Court sentenced Mayse to 480 months’ imprisonment for the drug trafficking conspiracy and the murder, to run concurrent to 240 months for his distribution and possession with intent to distribute drugs, to run concurrent to 120 months for his possession of two firearms as a previously convicted felon, and consecutive to an additional 60 months’ imprisonment for his possession of another firearm in furtherance of his drug trafficking, for a cumulative sentence of 540 months in prison.

Co-defendants Jose Lora, Dayquan Jordan, Ricky Terrell, Charles Mells, Raquan Rawls, Nasir Williams, Quadir Hatcher, Tyree Purkett, James Wicker, and Dayana Valderrama – all members or associates of the DTO – all previously pleaded guilty in federal court to crimes related to their respective roles.

Special Counsel Lamparello credited special agents and task force officers with the Bureau of Alcohol, Tobacco, Firearms and Explosives, Newark Field Division, under the direction of Special Agent in Charge L.C. Cheeks, Jr.; special agents and task force officers of the Drug Enforcement Administration, under the direction of Special Agent in Charge Towanda R. Thorne-James; the Essex County Prosecutor’s Office, under the direction of Prosecutor Theodore N. Stephens II and Chief Mitchell G. McGuire; the Newark Police Department, under the direction of Director Emanuel Miranda; and the Belleville Police Department, under the direction of Chief Mark Minichini.  He also thanked the U.S. Marshals Service and the Federal Bureau of Investigation for their assistance with this case.

The investigation was conducted as part of the Newark Violent Crime Initiative (VCI). 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 Newark. As part of this partnership, federal, state, county, and city agencies collaborate and pool resources to prosecute violent offenders who endanger the safety of the community. The VCI is composed of the U.S. Attorney’s Office, the FBI, the ATF, the DEA, the DHS/HSI, the USMS, the Newark Department of Public Safety, the Essex County Prosecutor’s Office, the Essex County Sheriff’s Office, New Jersey State Parole, Union County Jail, New Jersey State Police Regional Operations and Intelligence Center/Real Time Crime Center, New Jersey Department of Corrections, the East Orange Police Department, and the Irvington Police Department.

The government is represented by Assistant U.S. Attorney Tracey Agnew of the Criminal Division in Trenton and Assistant U.S. Attorney Jason Goldberg, Chief of the Narcotics and International Trafficking Unit in Newark.

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Defense counsel:

Thomas Ambrosio, Esq., for Gary Shahid

Joel Silberman, Esq., and Keith Oliver, Esq., for Michael Mayse

CAMDEN, N.J. – A Texas man was sentenced on January 15, 2026, to five years in prison and three years of supervised release for his role in a romance fraud scam in which he received money from elderly victims, including from New Jersey, and then transferred the money abroad, primarily to Ghana, Senior Counsel Philip Lamparello announced. The man’s romantic partner was sentenced on January 7, 2026, to 18 months in prison and two years of supervised release for her role in the scheme as an unlicensed money transmitter in accepting and transmitting some of the funds for profit.

Felix Clark, a/k/a “Joseph Moore,” a/k/a “Stanley Smith,” 37, of Royse City, Texas, was sentenced to 60 months in prison and three years of supervised release by Hon. Renée Marie Bumb, Chief, U.S. District Judge, in federal court in Camden. Clark previously pleaded guilty on May 6, 2025, to a two-count Information, charging conspiracy to commit wire fraud and wire fraud in connection with the romance fraud scam. At the conclusion of the sentencing hearing, Chief Judge Bumb remanded Clark to the custody of the U.S. Marshal to begin serving his sentence.

On January 7, Chief Judge Bumb sentenced Clark’s romantic partner, Esther Amppiaw, 34, of Royse City, Texas, to 18 months in prison and two years of supervised release. On May 23, 2025, Amppiaw pleaded guilty to a one-count Information charging her with operating an unlicensed money transmitter business. Amppiaw will report to serve her sentence on a later date.                     

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

From at least as early as October 2021 through September 2022, while a resident of Delray Beach, Florida, Clark conspired and agreed to receive the proceeds of fraud perpetrated by a co-conspirator in Ghana and transfer proceeds overseas. During the conspiracy, one or more of Clark’s co-conspirators went onto online dating sites and, using fake names, pretended to be romantically interested in elderly victims, including stating that they wanted to marry them. Many of the victims had recently lost their spouses.

The co-conspirators used electronic messages and emails to con victims into sending money—for instance, claiming that there was a large amount of gold in Ghana, but in order to get it, the victim had to pay taxes, fees, or other sums. The co-conspirators directed victims to send money to Clark and others acting at his direction, including Amppiaw. Clark used fake names, including “Joseph Moore” and “Stanley Smith”—as well as financial accounts in those fake names—to transfer the victims’ funds.

During his guilty plea hearing, Clark admitted responsibility for $501,071 in victim losses. He also admitted that after law enforcement executed a search warrant at his home, he attempted to obstruct justice by arranging for a falsified death certificate and funeral notice to be submitted to the United States, falsely claiming the death of a family member in order to obtain a passport that had been lawfully seized and to which he was not legally entitled.

Amppiaw admitted that she operated an unlicensed money transmitting business from January 2022 through June 2023, while a resident of Delray Beach, Florida. Amppiaw also admitted that she knowingly received checks, money orders, and electronic payments totaling $317,290 from individuals she did not know, and that she knowingly transmitted most of the funds to other individuals, including at least one recipient in New Jersey and also to recipients overseas, including Ghana. During that time, Amppiaw lied in four separate conversations with U.S. Customs and Border Patrol, U.S. Citizenship and Immigration Services (in her interview for U.S. citizenship), federal law enforcement, and her bank about the nature and amounts of her financial transaction activity.

Senior Counsel Philip Lamparello credited agents of the FBI’s Philadelphia Division, South Jersey Resident Agency, under the direction of Special Agent in Charge Wayne A. Jacobs, and the U.S. Postal Inspection Service’s Philadelphia Division, under the direction of Inspector in Charge Christopher Nielsen, with the investigation leading to the sentencings.

The government is represented by Assistant U.S. Attorney Elisa T. Wiygul of the U.S. Attorney’s Office in Camden.

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Defense Counsel:

Felix Clark: Jeremy McLymont, Esq., Miami, Florida

Esther Amppiaw: James Maguire, Esq., AFPD, Camden, New Jersey

NEWARK, NJ – A Delaware corporation with a place of business in Fairfield, New Jersey entered into a settlement agreement with the United States resolving allegations that the company violated the False Claims Act by applying for and receiving a Paycheck Protection Program (PPP) loan for which the company was not eligible, Senior Counsel Philip Lamparello announced.

According to the contentions of the United States in the settlement agreement:

Protech Powder Coatings, Inc. (“Protech Powder”) is a Delaware corporation with a place of business in Fairfield, New Jersey. Protech Powder is a subsidiary of the Protech Group, a Canadian company that manufactures and distributes paints, powder coatings, and specialty materials. During the period of March 12, 2021 to January 14, 2022, Protech Powder applied for and received PPP loan and loan forgiveness totaling $2,016,888 (including interest).

The United States contends that Protech Powder falsely certified eligibility to receive this second-draw PPP loan and loan forgiveness totaling $2,016,888 (including interest). The United States contends that Protech Powder knowingly made false statements, or caused false statements to be made, when it certified in its PPP loan application that it was eligible for a loan. At the time of its loan application, the United States contends that Protech Powder was not eligible to participate in the PPP because, inclusive of affiliates’ employees, Protech Powder exceeded applicable size standards. In addition, because of Protech Powder’s false statements on its loan application, the United States paid $60,000 in lender processing fees associated with the second-draw loan for which Protech Powder was ineligible.

In accordance with the terms of the settlement agreement, Protech Powder paid the United States $2,907,643. The settlement resolves a lawsuit filed under the whistleblower provision of the False Claims Act, which permits private parties, called relators, to file suit on behalf of the United States for false claims and share in a portion of the government’s recovery. In this matter, the relator is receiving $290,764 as the share in the recovery.

Congress created the PPP in March 2020 to provide emergency financial assistance to Americans suffering from the economic effects of the COVID-19 pandemic. Under the PPP, eligible businesses could receive forgivable loans guaranteed by the Small Business Administration (SBA). Regulations provide various eligibility requirements for the PPP, including limitations on the number of employees and revenue size limits. In their loan applications, borrowers were required to certify that they were eligible for the PPP and that the information they provided was accurate.

Senior Counsel Lamparello credited the SBA’s Office of General Counsel for their assistance in this matter.

Assistant U.S. Attorney Susan J. Pappy of the Health Care Fraud and Opioids Enforcement Unit in Newark represents the government.

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

The qui tam case is captioned US ex rel. GNGH2, Inc. v Protech Powder Coatings, Inc., 24-cv-08805 (D.N.J.).

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

                                                                       ###

Counsel for Protech Powder Coatings, Inc.: Mark A. Rush, K&L Gates LLP

Relator’s counsel: David Abrams, Esq.

NEWARK, N.J. – Four pharmacies located in West New York, Bayonne, Union City, and Jersey City have agreed to pay $4,325,000 to resolve allegations that they violated the False Claims Act by knowingly billing federal health care programs for medications never dispensed, Senior Counsel Philip Lamparello announced today.

According to the contentions of the United States in the settlement agreements, inventory records showed that the below pharmacies did not purchase enough medications from wholesalers to fill the prescriptions billed to the federal health care programs.

• Pan American Inc. agreed to pay $3,100,000 to resolve allegations that from January 2, 2015 through January 25, 2022, it caused the submission of claims for reimbursement to the Medicare Part D Program and the New Jersey Medicaid Program for drugs  Pan American never dispensed to beneficiaries.
• St. Mina and St. Moses Pharmacy d/b/a Well Care Pharmacy agreed to pay $490,000 to resolve allegations that from May 31, 2016 through March 1, 2022, it caused the submission of claims for reimbursement to the Medicare Part D Program for drugs the pharmacies never dispensed to beneficiaries.
• Farmacia Latina Corp. agreed to pay $375,000 to resolve allegations that from January 2, 2015 through January 24, 2022, it caused the submission of claims for reimbursement to the Medicare Part D Program for drugs Farmacia Latina never dispensed to beneficiaries.
• Perfect Care Pharmacy LLC agreed to pay $360,000 to resolve allegations that from January 2, 2015 through January 25, 2022, it caused the submission of claims for reimbursement to the Medicare Part D Program for drugs Perfect Care never dispensed to beneficiaries.

The government is represented by Assistant U.S. Attorneys Kruti Dharia and Robert Toll of the Health Care Fraud & Opioids Enforcement Unit.

The government’s pursuit of these matters illustrates the government’s emphasis on combating healthcare fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Health and Human Services, at 1-800-HHS-TIPS (800-447-8477).

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

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NEWARK, N.J. – A Jordanian man who was residing in the Republic of Georgia admitted his role as an “access broker” who sold unauthorized access to computer networks of at least 50 victim companies, Senior Counsel Philip Lamparello announced.

Feras Khalil Ahmad Albashiti, a/k/a “r1z,” a/k/a “Feras Bashiti,” and a/k/a “Firas Bashiti, 40, pleaded guilty before U.S. District Judge Michael A. Shipp in Trenton federal court today to an information charging Albashiti with fraud and related activity in connection with access credentials.

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

In May 2023, law enforcement officers were investigating an online forum where malware and malicious code was being offered for sale. Albashiti controlled an online moniker named “r1z” and used it in the online forum.  On May 19, 2023, Albashiti sold to an undercover law enforcement officer unauthorized access to the networks of at least 50 victim companies in exchange for cryptocurrency.

The charge of fraud and related activity in connection with access devices carries a maximum penalty of 10 years in prison and a maximum fine of $250,000, or twice the gross amount of gains or losses resulting from the offense. The Justice Department’s Office of International Affairs secured the July 2024 extradition from Georgia of Albashiti.  Sentencing is scheduled for May 11, 2026.

Senior Counsel Lamparello credited special agents and members of the Federal Bureau of Investigation, under the direction of Special Agent in Charge Stefanie Roddy in Newark, with the investigation leading to the guilty plea.

The government is represented by Assistant U.S. Attorney Benjamin Levin, Deputy Chief of the Cybercrime Unit in Newark.

                                                             ###

Defense Counsel: Rahul Agarwal, Esq.

CAMDEN, N.J. – A Camden County, New Jersey, man was sentenced today to 133 months’ imprisonment for conspiring to distribute more than 5 kilograms of cocaine and possessing a firearm, Senior Counsel Philip Lamparello announced.

Rasheed Amin, 47, of Voorhees, New Jersey, previously pleaded guilty before U.S. District Judge Christine P. O’Hearn to an information charging him with one count of conspiring to distribute more than 5 kilograms of cocaine and one count of being a felon in possession of a firearm.

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

On multiple occasions in 2024, Amin flew from Philadelphia, Pennsylvania, to various cities in the western United States to obtain cocaine for further distribution.  Amin then mailed parcels containing the cocaine to his Voorhees residence and other addresses in New Jersey, Pennsylvania, and New York.  On October 29, 2024, law enforcement officers executed a search warrant at Amin’s Voorhees residence and recovered several kilograms of cocaine, as well as a loaded firearm.  Amin—a previously-convicted felon—admitted to possessing the cocaine and the firearm recovered from his residence.

Senior Counsel Lamparello credited inspectors and task force officers of the U.S. Postal Inspection Service’s Philadelphia Division, under the direction of Inspector in Charge Christopher Nielsen, with the investigation leading to the sentencing.  He also credited the U.S. Department of Homeland Security, Homeland Security Investigations Newark, under the direction of Special Agent in Charge Michael S. McCarthy, the Camden County Police Department, under the direction of Chief Gabriel Rodriguez, and the Cherry Hill Police Department, under the direction of Chief John Ostermueller, for their assistance.

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

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Defense counsel: Ikram Ally, Esq., Assistant Federal Public Defender.

TRENTON, N.J. – A Mexican national admitted to distribution of controlled substances and illegal firearm possession, Senior Counsel Philip Lamparello announced today.

Hector Riano-Corcuera, 33, a citizen and national of Mexico and most recently of East Brunswick, New Jersey, pleaded guilty before U.S. District Judge Zahid N. Quraishi to a two-count Information charging him with distribution of controlled substances and unlawful possession of a firearm by a convicted felon. Riano-Corcuera had been previously charged by complaint with these offenses on June 27, 2025.

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

On or about June 26, 2025, law enforcement officers with the Drug Enforcement Administration arrested Riano-Corcuera after he sold approximately 10 kilograms of cocaine to another individual. Prior to the arrest, Riano-Corcuera fled on foot from the officers before being caught. Once apprehended, officers recovered a loaded Sig Sauer 9mm firearm from a bag that Riano-Corcuera had been wearing. Law enforcement then executed a search of Riano-Corcuera’s residence, where they recovered additional quantities of cocaine, two semiautomatic rifles, three handguns, and a variety of firearm ammunition.

The cocaine distribution charge carries a mandatory minimum penalty of 10 years in prison, a maximum potential penalty of life in prison, and a fine of up to $10 million. The unlawful possession of a firearm by a convicted felon charge carries a maximum potential penalty of 15 years in prison and a fine of up to $250,000. Sentencing is scheduled for May 13, 2026.

Senior Counsel Lamparello credited special agents with the Drug Enforcement Administration, under the direction of Special Agent in Charge Towanda Thorne-James in Newark, with the investigation leading to the guilty plea. He also thanked the Federal Bureau of Investigation, under the direction of Special Agent in Charge­­­­ Stefanie Roddy in Newark, the Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Ricky J. Patel in Newark, IRS-Criminal Investigation, under the direction of Special Agent in Charge Jenifer Piovesan in Newark, the Middlesex County Prosecutor’s Office, under the direction of Prosecutor Linda Estremera, the Monmouth County Prosecutor’s Office, under the direction of Prosecutor Raymond S. Santiago, the Ocean County Prosecutor’s Office, under the direction of Bradley D. Billhimer, the Asbury Park Police Department, under the direction of Deputy Chief of Police Guy Thompson, the East Brunswick Police Department, under the direction of Chief of Police Frank LoSacco, the Lakewood Police Department, under the direction of Chief of Police Gregory H. Meyer, the Manchester Township Police Department, under the direction of Chief of Police Antonio Ellis, the Middletown Police Department, under the direction of Chief of Police R. Craig Weber, the Neptune Police Department, under the direction of Chief of Police Anthony Gualario, the Ocean Gate Police Department, under the direction of Chief Michael Kuchta, and the Spotswood Police Department, under the direction of Chief of Police Philip Corbisiero, for their assistance in the investigation.

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

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Defense counsel: Andrea Aldana, Esq., Federal Public Defenders.

TRENTON, N.J. – A Hunterdon County man was arraigned after being indicted on a charge of possessing videos and images of child sexual abuse, Senior Counsel Philip Lamparello announced.

David Tuytjens, 70, of Tewksbury Township, New Jersey, was charged in a one-count Indictment with possession of child pornography. Yesterday, he was arraigned before U.S. District Judge Michael A. Shipp in Trenton federal court and entered a plea of not guilty. Tuytjens was initially charged by complaint on the same offense in April 2025.

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

In December 2024, officers from the New Jersey State Parole Board visited Tuytjens’ residence and discovered various electronic devices, including a 64 gigabyte MicroSD storage card inside of a laptop. Officers conducted their visit because Tuytjens is prohibited from possessing, among other things, Internet-capable devices as an individual under Community Supervision for Life due to a prior State conviction for aggravated sexual assault. An examination of the storage card contents revealed at least 800 images and 30 video files containing child sexual abuse materials (“CSAM”). A review of the CSAM has revealed images depicting prepubescent minors engaged in sexually explicit conduct, images portraying sadistic or masochistic conduct, and sexual abuse or exploitation of an infant or toddler.

Due to Tuytjens’ prior convictions, including a federal conviction for possession of child pornography, the charge of possession of child pornography carries a statutory maximum penalty of 20 years in prison and a mandatory minimum penalty of 10 years in prison. The charge also carries with it a maximum $250,000 fine.

Senior Counsel Lamparello credited special agents of the Child Exploitation and Human Trafficking Task Force in the Newark Office of the Federal Bureau of Investigation, under the direction of Special Agent in Charge Stefanie Roddy in Newark, the New Jersey State Parole Board, under the direction of Chairman Samuel J. Plumeri, Jr., and the Hunterdon County Prosecutor’s Office, under the direction of Prosecutor Renée M. Robeson, with the investigation leading to the indictment.

This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit Justice.gov/PSC.

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

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

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Defense counsel: Carlos Diaz-Cobo, Esq.

NEWARK, N.J. – Three men were charged with conspiracy to commit bank fraud connected to theft of mail from collection boxes and postal vehicles across Northern New Jersey, Senior Counsel Philip Lamparello announced today.

Jeffrey Bennett, a/k/a “Bizz,” a/k/a “Riley Smith,” 31, of Irvington and Rahway, New Jersey, Aquil Hubbard, 31, of Middlesex and Newark, New Jersey, and Tashon Ragan, a/k/a “Ta,” 26, of Union, New Jersey, were charged by criminal complaint with conspiracy to commit bank fraud.  Bennett, Hubbard, and Ragan made their initial appearances in court before U.S. Magistrate Judge André M. Espinosa in Newark federal court.  They were detained pending further proceedings.

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

From December 2024 to December 2025, Bennett, Hubbard, and Ragan conspired to steal mail and packages from United States Postal Service mail collection boxes and postal vehicles.  The conspirators sought checks, financial instruments, and other items of value from the mail.  The conspirators altered checks and attempted to deposit them at various financial institutions in New Jersey, and they used social media to recruit account holders at various financial institutions to further the goals of the conspiracy.  Investigators connected Bennett, Hubbard, and Ragan to a series of smash-and-grab burglaries of United States Postal Service vehicles across Northern New Jersey.  In those incidents, members of the conspiracy either smashed windows of postal vehicles or opened unlocked vehicle doors and stole trays of mail, often in broad daylight while postal workers were out delivering mail.

The charge of conspiracy to commit bank fraud carries a maximum penalty of 30 years’ imprisonment and a fine of $1,000,000 or twice the gross gain to the defendant or loss to a person other than the defendant, whichever is greater.

Senior Counsel Philip Lamparello credited postal inspectors of the United States Postal Inspection Service, under the direction of Inspector in Charge Christopher Nielsen, Philadelphia Division, with the investigation leading to the charges.  He also thanked postal inspectors of the United States Postal Service, Office of the Inspector General, Northeast Area Field Office, and agents and investigators from the United States Secret Service, Newark Field Office, as well as law enforcement officers from the Bernards Police Department, Belleville Police Department, Chatham Borough Police Department, Clifton Police Department, East Hanover Police Department, Maplewood Police Department, Middlesex Police Department, Metuchen Police Department, Nutley Police Department, Parsippany Police Department, Rahway Police Department, Roseland Police Department, and Union Police Department.

The government is represented by Assistant U.S. Attorney Michael K. O’Leary of the General Crimes Unit in Newark.

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

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Defense counsel for Bennett: Laura Sayler, Esq. Assistant Federal Public Defender

Defense counsel for Hubbard: Perry Primavera, Esq.

Defense counsel for Ragan: Adam Elewa, Esq.

NEWARK, N.J. – A federal grand jury returned separate Indictments charging two Bergen County men with illegally voting in a federal election and making false statements while applying for United States citizenship, Senior Counsel Philip Lamparello announced.

According to the Indictments, which were returned on December 22, 2025, both Muhammad Muzammal, 37, and Muhammad Shakeel, 62, were non-citizens at the time they registered to vote in New Jersey. However, on their registration forms, both men falsely certified and attested that they were United States citizens. After their applications to register were approved, each of the men, still without United States citizenship, cast ballots in the in the November 2020 general election, which included the election for the offices of President and Vice President of the United States. In order to register to vote and vote in federal elections, a person must be a United States citizen.

The Indictments also allege that after they illegally voted in a federal election, Muhammad Muzammal and Muhammad Shakeel each applied to become United States citizens by submitting applications for naturalization (an “N-400”).  An N-400 requires the applicant to swear under penalty of perjury that the information they provide in their application is complete, true, and correct.  In their respective N-400s, both men falsely claimed that they had never registered to vote or voted in any Federal, state, or local elections.

After they submitted their N-400s, both men were interviewed by an Immigration Services Officer who placed them under oath and questioned them about the answers that the men provided in their respective N-400s.  During those interviews, both Muhammad Muzammal and Muhammad Shakeel again falsely asserted that they had never voted in any Federal, state, or local elections.

Muhammad Shakeel, will make his initial appearance before a Magistrate in federal District Court in Trenton on January 21, 2026, and his case has been assigned to District Judge Georgette Castner. Muhammad Muzammal, whose case has been assigned to District Judge Karen M. Williams, will make his initial appearance in federal District Court in Camden on a date to be determined.

If convicted, the defendants face the following maximum sentences:

Count

Offense

Maximum Penalties

Senior Counsel Lamparello credited special agents of the FBI, under the direction of Special Agent in Charge Stefanie Roddy; Homeland Security Investigations, under the direction of Special Agent in Charge Michael McCarthy; and U.S. Citizenship and Immigration Services, under the direction of District Director John Thompson, with the investigations.

This case was brought under the United States Attorney’s Office’s Election Integrity Task Force, a coalition of federal law enforcement partners focused on preserving and protecting the integrity of elections conducted in the District of New Jersey.

The government is represented by Assistant U.S. Attorney Mark J. McCarren of the U.S. Attorney’s Office’s Special Prosecutions Division.

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

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Defense counsel:

Rizwan M. Khalid, Esq., (for Muhammad Muzammal and Muhammad Shakeel)

CAMDEN — A New Jersey man was sentenced yesterday to 14 years in prison and 15 years of supervised release for promoting child sexual abuse material on the dark web.

According to court documents, between Oct. 18, 2020, and Jan. 20, 2023, Declan Golden, 39, of Middletown Township, New Jersey, accessed and engaged with a website on the Tor network known to encourage its users to post and trade child sexual abuse material. While on this website, Golden created numerous posts related to voyeurism and the sexual exploitation of children while encouraging other users to share images with him. Golden also posted links for users to access images of children engaging in sexually explicit conduct and statements about using a spycam on girls in the shower and on the toilet. A search of his devices revealed many videos and image files of child sexual abuse material, including depictions of prepubescent children engaged in sexual acts. In an interview with law enforcement, Golden admitted to viewing child sexual abuse material beginning in 2014.

Golden pleaded guilty in May 2025 to the charge of promoting material containing child pornography involving a prepubescent minor in the U.S. District Court for the District of New Jersey.

Senior Counsel Philip Lamparello for the Criminal and Special Prosecutions Division of the U.S. Attorney’s Office for the District of New Jersey, Assistant Attorney General A. Tysen Duva of the Justice Department’s Criminal Division, and Special Agent in Charge Stefanie Roddy of the FBI Newark Child Exploitation and Human Trafficking Task Force made the announcement.

This case was investigated by the FBI’s Child Exploitation Operational Unit (CEOU). The Department also thanks the Middletown Police Department for its assistance with the investigation.

Assistant U.S. Attorney Christopher Fell for the District of New Jersey and Trial Attorney Anglica Carrasco of the Justice Department’s Child Exploitation and Obscenity Section are prosecuting the case.

This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, visit www.justice.gov/psc.

                                                                                                        ###

A New Jersey man was sentenced yesterday to 14 years in prison and 15 years of supervised release for promoting child sexual abuse material on the dark web.

According to court documents, between Oct. 18, 2020, and Jan. 20, 2023, Declan Golden, 39, of Middletown Township, New Jersey, accessed and engaged with a website on the Tor network known to encourage its users to post and trade child sexual abuse material. While on this website, Golden created numerous posts related to voyeurism and the sexual exploitation of children while encouraging other users to share images with him. Golden also posted links for users to access images of children engaging in sexually explicit conduct and statements about using a spycam on girls in the shower and on the toilet. A search of his devices revealed many videos and image files of child sexual abuse material, including depictions of prepubescent children engaged in sexual acts. In an interview with law enforcement, Golden admitted to viewing child sexual abuse material beginning in 2014.

Golden pleaded guilty in May 2025 to the charge of promoting material containing child pornography involving a prepubescent minor in the U.S. District Court for the District of New Jersey.

Assistant Attorney General A. Tysen Duva of the Justice Department’s Criminal Division, Senior Counsel Philip Lamparello for the Criminal and Special Prosecutions Division of the U.S. Attorney’s Office for the District of New Jersey, and Special Agent in Charge Stefanie Roddy of the FBI Newark Child Exploitation and Human Trafficking Task Force made the announcement.

This case was investigated by the FBI’s Child Exploitation Operational Unit (CEOU). The Department also thanks the Middletown Police Department for its assistance with the investigation.

Trial Attorney Anglica Carrasco of the Justice Department’s Child Exploitation and Obscenity Section and Assistant U.S. Attorney Christopher Fell for the District of New Jersey are prosecuting the case.

This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, visit www.justice.gov/psc.

NEWARK, N.J. – A New Jersey doctor was charged in a 58-count indictment with distributing opioids without a legitimate medical purpose, maintaining a drug-involved premises, and defrauding New Jersey Medicaid by billing for visits that never happened, Senior Counsel Philip Lamparello announced today.

Ritesh Kalra, 52, of Secaucus, New Jersey, was previously charged by criminal complaint in July 2025, and now stands charged by indictment with additional offenses, including 36 counts of distributing opioids outside the usual course of professional practice and not for a legitimate medical purpose, one count of maintaining a drug-involved premises, and 21 counts of health care fraud. Kalra appeared for an arraignment and initial appearance on the indictment today before U.S. District Judge Michael E. Farbiarz in Newark federal.

“The additional charges against Dr. Kalra demonstrate that our Office will continue to pursue justice for victims of the opioid epidemic in New Jersey by prosecuting doctors who, as alleged, use their positions of trust to fuel addiction and exploit vulnerable patients. Physicians who defraud New Jersey’s Medicaid Program for their own personal gain will be held accountable.”

- Senior Counsel Philip Lamparello

“Doctors know the devastation opioid addiction can wreak when left unchecked. Allegedly, Dr. Kalra used his position of power for financial gain, fabricating fake appointments, and in some cases, demanding sexual favors in return for prescriptions. The FBI and its partners work tirelessly against such abuses of power, to ensure the abuser is no longer able to victimize patients. This indictment serves as a warning to others that a prescription pad is not a license to destroy lives,” stated FBI-Newark Special Agent in Charge Stefanie Roddy.

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

Dr. Kalra, an internist in Fair Lawn, New Jersey, allegedly operated a pill mill out of his medical office, where he routinely prescribed high-dose opioids—including oxycodone and promethazine with codeine—to patients without a legitimate medical purpose.  Between January 2019 and February 2025, Kalra issued more than 31,000 prescriptions for oxycodone, including days when he wrote upwards of 50 prescriptions.  Several of Kalra’s former employees reported that female patients complained that Kalra touched them sexually and demanded sexual favors of them in exchange for opioids. One patient described being sexually assaulted by Kalra on multiple occasions, including forced anal sex during clinical appointments.  Another patient continued to receive opioid prescriptions from Kalra when the patient was incarcerated at Essex County Correctional Facility and had no contact with Dr. Kalra.

Kalra also allegedly billed for in-person office visits that never occurred.  As part of the health care fraud scheme, Kalra’s electronic medical records allegedly contained false progress notes listing fabricated dates of service, and included examination notes that were generally identical from visit to visit and did not record vital signs.

Each of the 36 distribution counts carries a maximum penalty of 20 years in prison and a $1 million fine. The charge of maintaining a drug-involved premises carries a maximum penalty of 20 years in prison and a $500,000 fine.  Each of the 21 health care fraud counts is 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 greatest.

Individuals who believe they may be victims of Dr. Kalra or have information about this case may contact the FBI at 1-800-CALL-FBI (225-5324) or by email at NK-Victim-Assistance@fbi.gov.

Senior Counsel Philip Lamparello credited the following law enforcement organizations with the investigation leading to today’s charges: the Federal Bureau of Investigation, under the direction of Special Agent in Charge Stefanie Roddy; the Drug Enforcement Administration, New Jersey Field Division, under the direction of Special Agent in Charge Towanda Thorne-James; the U.S. Department of Health and Human Services Office of Inspector General, under the direction of Special Agent in Charge Naomi Gruchacz; the Internal Revenue Service—Criminal Investigation, under the direction of Special Agent in Charge Jenifer Piovesan; the Social Security Administration Office of Inspector General, under the direction of Special Agent in Charge Amy Connelly; the New Jersey Office of the Attorney General Division of Criminal Justice; and the Fair Lawn Police Department.

The government is represented by Assistant U.S. Attorney Katherine M. Romano, Chief of the General Crimes Unit, and Assistant U.S. Attorney Jessica R. Ecker of the Health Care Fraud and Opioids Enforcement 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.

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Defense counsel:  Michael Baldassare, Esq., and Jennifer Mara, Esq. 

CAMDEN, N.J. – KeyBank National Association (“Key Bank), headquartered in Cleveland, Ohio, has entered into a settlement agreement with the United States resolving allegations that the bank violated the False Claims Act by submitting for forgiveness fraudulent loans from the Paycheck Protection Program (PPP), which one of its branch managers had fraudulently conspired to obtain, Senior Counsel Philip Lamparello announced today.

“The Paycheck Protection Program was designed to support small businesses during the pandemic, not to enrich insiders. This resolution holds KeyBank accountable for submitting forgiveness claims it had compelling evidence were fraudulent, makes taxpayers whole, and reinforces our Office’s commitment to holding both individuals and institutions responsible for fraud.”

- Senior Counsel Philip Lamparello

According to the contentions of the United States contained in the settlement agreement:

Congress created the PPP in March 2020, as part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, to provide emergency financial support to the millions of Americans suffering the economic effects caused by the COVID-19 pandemic. The CARES Act authorized billions of dollars in forgivable loans to small businesses struggling to pay employees and other business expenses.

Tommy Hawkins was a bank manager at the Conshohocken Branch of Key Bank.  In 2020 and early 2021, he worked with his co-conspirators to recruit individuals who owned companies with little or no actual operations to open bank accounts and apply for PPP loans at the bank branch that Hawkins managed. Hawkins helped the recruited individuals submit PPP loan applications that contained materially false representations about the companies’ number of employees and payroll expenses. The applications also included false documentation, including tax forms. Hawkins facilitated approximately four dozen applications, for which the Small Business Association (“SBA”) paid nearly $6 million.  Before Key Bank became aware of the scheme, Hawkins received incentive compensation through the bank related to opening new business bank accounts for the companies that received fraudulent PPP loans. In doing so, he violated Key Bank’s policies.

In spring 2021, Key Bank detected suspicious patterns in Hawkins’ origination of new business accounts.  After an internal investigation, Key Bank disclosed to the SBA its concerns with eighteen loans Key identified as potentially fraudulent. Over the ensuing months, Key Bank’s investigations identified approximately a dozen additional loans that were likely fraudulent, and it disclosed those to the SBA. Key Bank did not investigate or otherwise detect fraud in the remaining seventeen loans to Fraudulent PPP Borrowers that Hawkins facilitated during that time.  Notwithstanding its concerns with the loans, Key Bank submitted forgiveness applications or guaranty purchase forms to the SBA for all forty-eight loans.  Because each individual loan was below $150,000, SBA granted that forgiveness on an expedited basis.

Key Bank cooperated in the investigation of Hawkins’ misconduct, and the settlement reflects that cooperation.  Key Bank has agreed to pay $7,770,595.25 to resolve claims under the civil False Claims Act and CARES Act.

“Today’s settlement of $7.7 million holds Key Bank accountable for violating the False Claims Act. This settlement resolves allegations that the bank submitted fraudulent loan applications for forgiveness under the Paycheck Protection Program. The bank did so, despite having concerns about the origination of many of the loans,” said Special Agent in Charge Patricia Tarasca, of the Federal Deposit Insurance Corporation Office of Inspector General (FDIC OIG), New York Region. “The FDIC OIG remains committed to working with our law enforcement partners to investigate fraud that occurred in the Paycheck Protection Program, and other instances of fraud that threaten to undermine the integrity of our Nation’s financial institutions.”

In addition to civil settlement, the U.S. Attorney’s Office Criminal Division previously charged seven individuals as part of the criminal conspiracy.  On May 28, 2024, Tommy Hawkins pleaded guilty to an Information charging him with one count of conspiracy to commit bank fraud.  In October 2024, Hawkins was sentenced to 65 months’ imprisonment. 

On July 5, 2023, William Ingram pleaded guilty to an Information charging him with conspiracy to commit bank fraud.  He has not yet been sentenced.

On July 10, 2023, Yasha Barjona pleaded guilty to an Information charging him with conspiracy to commit bank fraud.  He has not yet been sentenced.

On July 17, 2024, Lisa Smith pleaded guilty to an Information charging her with conspiracy to commit bank fraud.  She has not yet been sentenced.

On May 23, 2024, Sieff Robert Sargeant pleaded guilty to an Information charging him with money laundering by transacting in criminal proceeds. On October 3, 2024, he was sentenced to 6 months’ imprisonment and 6 months of home detention with location monitoring.

On April 17, 2024, Eric Rivera was indicted on one count of bank fraud conspiracy, three counts of bank fraud, one count of wire fraud conspiracy, two counts of wire fraud, one count of money laundering conspiracy, and eight counts of money laundering.

Also on April 17, 2024, James Wessels was indicted on with one count of bank fraud conspiracy, three counts of bank fraud, and one count of money laundering conspiracy.

The charges and allegations contained in the Indictment against Eric Rivera and James Wessels are merely accusations, and the defendants are presumed innocent unless and until proven guilty.

Senior Counsel Lamparello credited with the investigation special agents of the Federal Deposit Insurance Corporation – Office of the Inspector General, New York Region, under the direction of Special Agent-in-Charge Patricia Tarasca; special agents of the FBI’s South Jersey Resident Agency, under the direction of Special Agent in Charge Wayne A. Jacobs in Philadelphia; special agents of the Social Security Administration, Office of the Inspector General, Boston-New York Field Division, under the direction of Acting Special Agent in Charge Corwin Rattler; and special agents and attorneys of the Small Business Administration, Office of Inspector General, under the direction of Supervisory Criminal Investigator Angelo Palmeri in New York.

The government is represented by Assistant U.S. Attorney Paul W. Kaufman of the Health Care Fraud and Opioid Enforcement Unit.  The government is represented in the parallel criminal investigation by former Assistant United States Attorney Daniel A. Friedman and Attorney-in-Charge Jason M. Richardson of the U.S. Attorney’s Office’s Criminal Division in Camden.

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

26-003                                                             ###

Counsel for Key Bank: Justin Herdman, Adam Hollingsworth, and Brittany Wilhelm, Jones Day, Cleveland, OH

A former New York-based employee of TD Bank N.A, Wilfredo Aquino, pleaded guilty today to facilitating a money laundering network’s movement of hundreds of millions of dollars through TD Bank accounts.

“The defendant leveraged his position at TD Bank and facilitated the criminal activity of a money laundering network that moved hundreds of millions of dollars through the bank’s accounts,” said Assistant Attorney General A. Tysen Duva of the Justice Department’s Criminal Division. “During the illicit scheme, the defendant evaded reporting requirements to hide the identity of the leader of the money laundering network. The Criminal Division is fully committed to rooting out money-laundering networks and their facilitators that exploit the security and stability of our country’s banking system.”

“Aquino helped criminals launder money from inside TD Bank,” said Senior Counsel Philip Lamparello for the Criminal and Special Prosecutions Division of the U.S. Attorney’s Office for the District of New Jersey. “Bank employees are the first line of defense against money laundering, fraud, and other financial crimes. When bank employees ignore their obligations and instead use their positions to commit crimes and line their own pockets, we will not hesitate to hold them accountable.”

“Wilfredo Aquino’s position at TD Bank required him to report suspicious customer activity and adhere to robust anti-money laundering regulations,” said Special Agent in Charge Jenifer L. Piovesan of the IRS Criminal Investigation (IRS-CI) Newark Field Office. “Instead, he turned a blind eye to complying with the law and prioritized enriching himself. IRS-CI will continue working with our law enforcement partners to investigate individuals taking advantage of our financial system through criminal activity.”

Aquino, 47, of New York, pleaded guilty to a one-count information charging him with conspiring to launder monetary instruments. He is scheduled to be sentenced on May 12.

According to court filings, beginning in 2019 and continuing until February 2021, Aquino, then a TD Bank assistant store manager, leveraged his position to facilitate a money laundering network’s movement of hundreds of millions of dollars through TD Bank accounts. During that time, the leader of the network, Da Ying Sze, also known as David, and his co-conspirators (collectively known as David’s Network) moved approximately $474 million through TD Bank accounts by depositing cash at TD Bank stores in New York, New Jersey, and elsewhere. In February 2022, David pleaded guilty to coordinating a $653 million money laundering conspiracy, operating an unlicensed money transmitting business, and bribing bank employees in connection with financial transactions.

While David’s Network used a number of TD Bank stores to conduct its money laundering activity, it laundered the most money through Aquino’s Midtown Manhattan store. Nobody processed more transactions for David’s Network at the Midtown Manhattan store than Aquino.

During the course of David’s money laundering scheme, Aquino processed approximately 1,680 official bank checks for David’s Network, totaling more than approximately $92 million. Nearly all of these bank checks were funded with a corresponding cash deposit exceeding $10,000, which triggered TD Bank’s legal requirement to file a currency transaction report (CTR). Although Aquino knew that David was conducting these cash deposits, Aquino never identified David as the “conductor” on the CTR. Aquino also knew that TD Bank had closed other accounts linked to David for suspicious activity; one colleague even warned Aquino that David’s activity “looks like money laundering.” In February 2021, Aquino facilitated three of David’s money laundering transactions, totaling almost $2 million in cash, in a third party’s account. He failed to report David as the conductor of the transaction, thus concealing David’s role in the money laundering scheme.

Aquino accepted numerous retail gift cards from David totaling over $11,000 in return for his facilitation of this scheme, including for the three transactions in February 2021.

The charge of money laundering conspiracy carries a maximum penalty of 20 years in prison and a fine of $500,000 or twice the amount involved in the offense, whichever is greater.

IRS-CI and the Federal Deposit Insurance Corporation Office of Inspector General (FDIC-OIG) investigated the case. The Department also thanks the Morristown Police Department for its assistance with the investigation.

Trial Attorneys D. Zachary Adams and Chelsea Rooney of the Criminal Division’s Money Laundering, Narcotics and Forfeiture Section and Assistant U.S. Attorney Marko Pesce, Chief of the Bank Integrity, Money Laundering, and Recovery Unit for the District of New Jersey are prosecuting the case.

The Money Laundering, Narcotics and Forfeiture Section’s Bank Integrity Unit investigates and prosecutes banks and other financial institutions, including their officers, managers and employees whose actions threaten the integrity of the individual institution or the wider financial system.

NEWARK – A former New York-based employee of TD Bank N.A, Wilfredo Aquino, pleaded guilty today to facilitating a money laundering network’s movement of hundreds of millions of dollars through TD Bank accounts.

“Aquino helped criminals launder money from inside TD Bank. Bank employees are the first line of defense against money laundering, fraud, and other financial crimes. When bank employees ignore their obligations and instead use their positions to commit crimes and line their own pockets, we will not hesitate to hold them accountable.”

- Senior Counsel Philip Lamparello

“The defendant leveraged his position at TD Bank and facilitated the criminal activity of a money laundering network that moved hundreds of millions of dollars through the bank’s accounts,” said Assistant Attorney General A. Tysen Duva of the Justice Department’s Criminal Division. “During the illicit scheme, the defendant evaded reporting requirements to hide the identity of the leader of the money laundering network. The Criminal Division is fully committed to rooting out money-laundering networks and their facilitators that exploit the security and stability of our country’s banking system.”

“Wilfredo Aquino’s position at TD Bank required him to report suspicious customer activity and adhere to robust anti-money laundering regulations,” said Special Agent in Charge Jenifer L. Piovesan of the IRS Criminal Investigation (IRS-CI) Newark Field Office. “Instead, he turned a blind eye to complying with the law and prioritized enriching himself. IRS-CI will continue working with our law enforcement partners to investigate individuals taking advantage of our financial system through criminal activity.”

Aquino, 47, of New York, pleaded guilty to a one-count information charging him with conspiring to launder monetary instruments. He is scheduled to be sentenced on May 12.

According to court filings, beginning in 2019 and continuing until February 2021, Aquino, then a TD Bank assistant store manager, leveraged his position to facilitate a money laundering network’s movement of hundreds of millions of dollars through TD Bank accounts. During that time, the leader of the network, Da Ying Sze, also known as David, and his co-conspirators (collectively known as David’s Network) moved approximately $474 million through TD Bank accounts by depositing cash at TD Bank stores in New York, New Jersey, and elsewhere. In February 2022, David pleaded guilty to coordinating a $653 million money laundering conspiracy, operating an unlicensed money transmitting business, and bribing bank employees in connection with financial transactions.

While David’s Network used a number of TD Bank stores to conduct its money laundering activity, it laundered the most money through Aquino’s Midtown Manhattan store. Nobody processed more transactions for David’s Network at the Midtown Manhattan store than Aquino.

During the course of David’s money laundering scheme, Aquino processed approximately 1,680 official bank checks for David’s Network, totaling more than approximately $92 million. Nearly all of these bank checks were funded with a corresponding cash deposit exceeding $10,000, which triggered TD Bank’s legal requirement to file a currency transaction report (CTR). Although Aquino knew that David was conducting these cash deposits, Aquino never identified David as the “conductor” on the CTR. Aquino also knew that TD Bank had closed other accounts linked to David for suspicious activity; one colleague even warned Aquino that David’s activity “looks like money laundering.” In February 2021, Aquino facilitated three of David’s money laundering transactions, totaling almost $2 million in cash, in a third party’s account. He failed to report David as the conductor of the transaction, thus concealing David’s role in the money laundering scheme.

Aquino accepted numerous retail gift cards from David totaling over $11,000 in return for his facilitation of this scheme, including for the three transactions in February 2021.

The charge of money laundering conspiracy carries a maximum penalty of 20 years in prison and a fine of $500,000 or twice the amount involved in the offense, whichever is greater.

IRS-CI and the Federal Deposit Insurance Corporation Office of Inspector General (FDIC-OIG) investigated the case. The Department also thanks the Morristown Police Department for its assistance with the investigation.

Assistant U.S. Attorney Marko Pesce, Chief of the Bank Integrity, Money Laundering, and Recovery Unit for the District of New Jersey and Trial Attorneys D. Zachary Adams and Chelsea Rooney of the Criminal Division’s Money Laundering, Narcotics and Forfeiture Section are prosecuting the case.

The Money Laundering, Narcotics and Forfeiture Section’s Bank Integrity Unit investigates and prosecutes banks and other financial institutions, including their officers, managers and employees whose actions threaten the integrity of the individual institution or the wider financial system.

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NEWARK, N.J. – Twenty-six people have been charged for their roles in a drug trafficking organization affiliated with a neighborhood street gang that operated and distributed large quantities of fentanyl, heroin, and crack cocaine in Riverside Villa Public Housing Complex and other areas of Newark, Senior Counsel Philip Lamparello announced. Two additional people were charged for firearms offenses, including their role in a shooting in a rival gang’s territory.

Tahjuan Ferrell, a/k/a “Jers,” Raymon Rodriguez, a/k/a “Ray Ray,” Ricky Colon, Jr., Sayyied Anderson, a/k/a “Sal,” Carnell Wright, a/k/a “Jay,” Briant Haynes, a/k/a “B,” Rashon Wheeler, a/k/a “Petey,” Demetrius Julu, Nero Whitehead, a/k/a “Woo,” Dawud Cross, a/k/a “Mu,” Joseph Johnson, a/k/a “Pearl,” Yusef Mack, a/k/a “Gutter,” Alsharick King, a/k/a “Ghost,” Montrel Jordan, a/k/a “Trillz,” Patrick Jordan, a/k/a “Swerve,” Raheam Springer, Ibn Rogers, Blake Howard, Daniel Valentin, Mekhi Lawrence, a/k/a “MK,” Craig Walker, a/k/a “Lean,” Kevin Wiley, a/k/a “LB,” Quince Melvin, Nakki Melvin, Ricardo Gonzalez, a/k/a “Ricky” and Quadir Simmons a/k/a “Scoom” all of Essex County, New Jersey, were charged with one count of conspiracy to distribute fentanyl, heroin, and cocaine.

Quasir Miranda, a/k/a “Space,” and Zakiyy Houser, a/k/a “GBK” are also each charged with unlawful possession of ammunition in a school zone in connection with the February 18, 2025 attempted shooting of a rival gang member.

Several of the defendants have already made initial court appearances before U.S. Magistrate Judge Cari Fais in Newark federal court.  Previously, twenty-five defendants were arrested and made initial court appearances before U.S. Magistrate Judge Jessia S. Allen in Newark federal court and before U.S. Magistrate Judge Natalie Hirt Adams in Tampa, Florida.

The defendants are members or associates of a neighborhood-based street gang operating in and around the Riverside Villa Public Housing Complex, 4th Avenue and North 12th Street, and the Garden Spires Apartments in Newark, New Jersey (the “Enterprise”), among other areas. The Enterprise is affiliated with the Bloods criminal street gang.

Law enforcement conducted extensive surveillance of the area, made numerous controlled purchases and seizures of narcotics, and analyzed telephone records, all of which demonstrated extensive interactions among the defendants.

Those charged in the drug conspiracy face a mandatory minimum penalty of 10 years in prison, maximum potential penalty of life in prison, and a $10 million fine.  Miranda and Houser each face up to 5 years in prison for unlawful possession of ammunition in a school zone.

Hundreds of members of law enforcement were instrumental in the investigation and arrests of these defendants. Special Counsel Lamparello credited special agents of the Bureau of Alcohol, Tobacco, and Firearms under the direction of Special Agent in Charge L.C. Cheeks; the Drug Enforcement Administration, under the direction Special Agent in Charge Towanda R. Thorne-James with the investigation leading to the charges. He also thanked police officers and detectives of the Newark Police Department, under the direction of Public Safety Director Emanuel Miranda, U.S. Customs and Border Protection officers, under the Director of Field Operations Francis Russo; HSI New York Field Office, under the direction of Special Agent in Charge Ricky J. Patel; HSI Newark Field Office, under the direction of Special Agent in Charge Michael McCarthy; members of the United Marshals Service, under the direction of U.S. Marshal for the District of New Jersey Juan Mattos; detectives of the Essex County Prosecutor’s Office, under the direction of Prosecutor Theodore N. Stephens, II and Chief Mitchell G. McGuire, III; police officers and detectives of the East Orange Police Department, under the direction of  Director Maurice Boyd and Chief Phyllis L. Bindi; detectives of the New Jersey State Police, under the direction of Colonel Patrick J. Callahan police officers and detectives with the Belleville Police Department, under the direction of Chief Mark Minichini; as well as police officers and detectives with the Bergen County Prosecutor’s Office, Passaic County Prosecutor’s Office, Union County Prosecutor’s Office, Hudson County Prosecutor’s Office, Morris County Prosecutor’s Office, Middlesex County Prosecutor’s Office, Orange Police Department, Bloomfield Police Department, Jersey City Police Department, Florham Park Police Department, Morristown Police Department, and Ramsey Police Department for their assistance in the apprehension of the members of the Enterprise.

The investigation was conducted as part of the Newark Violent Crime Initiative (“VCI”).  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 Newark.  As part of this partnership, federal, state, county, and city agencies collaborate and pool resources to prosecute violent offenders who endanger the safety of the community.  The VCI is composed of the U.S. Attorney’s Office, the FBI, the ATF, the Drug Enforcement Administration’s (DEA) New Jersey Division, Homeland Security Investigations, 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, Union County Jail, New Jersey State Police Regional Operations and Intelligence Center/Real Time Crime Center, New Jersey Department of Corrections, the East Orange Police Department, and the Irvington Police Department.

This investigation is part of Operation Take Back America, a nationwide initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations (TCOs), and protect our communities from the perpetrators of violent crime. Operation Take Back America streamlines efforts and resources from the Department’s Organized Crime Drug Enforcement Task Forces (OCDETFs) and Project Safe Neighborhood (PSN).

The government is represented by Assistant U.S. Attorneys Sean Nadel and Jason Goldberg of the Narcotics and International Trafficking Unit in Newark.

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

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Defense counsel:

Tahjuan Ferrell: Frank P. Arleo, Esq.

Raymon Rodriguez: Rahul Agarwal, Esq.

Sayyied Anderson: Michael Pappa, Esq.

Carnell Wright: Ernesto Cermiele, Esq.

Briant Hanyes: Arthur Paul Condon, Jr., Esq.

Rashon Wheeler: Stephen N. Dratch, Esq.

Demetrius Julu: Laura K. Gasiorowski, Esq.

Nero Whitehead: Charles McKenna, Esq.

Dawud Cross: Michael V. Gilberti, Esq.

Joseph Johnson: Maximillian A. Novel, Esq.

Yusef Mack Michael Rosas, Esq.

Alsharick King: Aidan P. O’Connor, Esq.

Montrel Jordan: James Seplowitz, Esq.

Patrick Jordan: William Strazza, Esq.

Raheam Springer: Mary Toscano Carpenito, Esq.

Ibn Rogers: Stephen Turano, Esq.

Blake Howard: Wanda Akin, Esq.

Daniel Valentin: Adrien Moncur, Esq.

Mekhi Lawrence: John A. Azzarello, Esq.

Craig Walker: Carlos Diaz-Cobo, Esq.

Kevin Wiley: Gary Mizzone, Esq.

Quince Melvin: Alyssa A. Cimino, Esq.

Nakki Melvin: Charles Alvarez, Esq.

Ricardo Gonzalez: Shawn Barnes, Esq.

Quadir Simmons: Lorraine Gauli-Rufo, Esq.

Quasir Miranda: John McMahon, Esq.

Zakiyy Houser: F.R. “Chip” Dunne, III, Esq.

NEWARK, N.J. – Two members of the Neighborhood Bloods street gang, which operated in Jersey City, New Jersey, were convicted of multiple charges stemming from the January 16, 2017, murder of three Jersey City residents, including a twenty-five-year-old pregnant woman, Senior Counsel Philip Lamparello announced.

“These convictions hold accountable violent gang members who carried out a calculated, execution-style triple homicide, including the murder of a young pregnant woman. The defendants planned these killings with chilling deliberation and then attempted to silence their own associate to avoid justice. Today’s verdicts make clear that this level of brutality will be met with the full force of federal prosecution, and that those who terrorize our communities will face severe consequences.”

- Senior Counsel Philip Lamparello

“Through the Jersey City Violent Crime Initiative, the full force of NJ Law enforcement is called upon in the aftermath of heinous crimes such as this triple homicide,” said FBI Newark Special Agent in Charge Stefanie Roddy. “This show of force will make clear to anyone contemplating gang-related or other violent crimes: do not expect to walk free in New Jersey.”

Following a month-long jury trial, Markell Brown, a/k/a “Sayboy,” 37, of Jersey City, New Jersey, was convicted of conspiracy to commit murder in aid of racketeering, three counts of murder in aid of racketeering, three counts of discharging a firearm in furtherance of a crime of violence, and three counts of causing death through use of a firearm. Terence Shaw, a/k/a “Sweet Meat,” 37, of Jersey City, New Jersey, was convicted of conspiracy to commit murder in aid of racketeering, two counts of murder in aid of racketeering, two counts of discharging a firearm in furtherance of a crime of violence, and two counts of causing death through use of a firearm.  With respect to Shaw, the jury could not come to a unanimous verdict as to one count of murder in aid of racketeering, one count of discharging a firearm in furtherance of a crime of violence, and one count of causing death through use of a firearm

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

On January 16, 2017, Brown and Shaw murdered a rival gang member with whom they had been feuding, along with the rival gang member’s pregnant girlfriend.  Brown then murdered one of Brown and Shaw’s own associates, who had accompanied them to commit the murders.  Brown and Shaw planned the murders through, among other things, orchestrating the use of a stolen U-Haul truck and purchasing two-way walkie-talkie radios to use during the murders.  Brown and Shaw then used their associate to obtain access to the rival gang member’s apartment.  After entering that residence on Fulton Avenue in Jersey City shortly before 10:00 p.m., Brown and Shaw executed the rival gang member, shooting him in the back of the head, the left arm, and the right shoulder.  They also executed the twenty-five-year-old woman, shooting her in the back of the head and the chest.  As Brown left the Fulton Avenue apartment, he shot his and Shaw’s associate in the chest to eliminate the possibility that he would provide information to law enforcement.

The conspiracy to commit murder in aid of racketeering carries a maximum potential penalty of 10 years in prison and a $250,000 fine.  Brown and Shaw face mandatory life sentences for each count of murder in aid of racketeering.  For each count of discharging a firearm during a crime of violence, they face mandatory consecutive sentences of ten years’ imprisonment.  The counts charging Brown and Shaw with causing death through use of a firearm carry maximum life sentences.  Sentencing is scheduled for April 22, 2026.

Senior Counsel Lamparello credited the Hudson County Prosecutor’s Office, under the direction of Acting Prosecutor Wayne Mello, and the Jersey City Police Department, under the direction of Public Safety Director James Shea, as well as special agents of the FBI, Newark Field Division, under the direction of Special Agent in Charge Stefanie Roddy with the investigation leading to the charges and arrests.

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

The government is represented by Assistant U.S. Attorney Kendall Randolph and Senior Trial Counsel Robert Frazer of the U.S. Attorney’s Office’s Organized Crime and Gangs Unit in Newark and Assistant U.S. Attorney James Graham of the U.S. Attorney’s Office’s Special Prosecutions Division in Newark. 

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Defense counsel: Brown - Stephen Turano, Esq. New York, and Thomas Ambrosio, Esq.

Shaw - Brooke Barnett, Esq. and Henry Klingeman, Esq. 

CAMDEN, N.J. – Two Absecon men admitted to conspiring with each other to defraud the Internal Revenue Service by filing false tax returns that concealed their motels’ cash payroll, Senior Counsel Philip Lamparello announced.

Dhruvesh Patel, 37, and Mayank Ray, 36, both of Absecon, New Jersey, pleaded guilty before U.S. District Judge Christine P. O’Hearn to informations charging each with one count of conspiring to defraud the IRS.

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

Patel and Ray operated two motels in Atlantic City, New Jersey.  Their motels generated substantial gross receipts from customers who paid for their motel rooms in cash.  As part of the conspiracy, Patel and Ray used a large portion of the cash to pay employees in cash and kept some of the resulting cash for personal use. Patel and Ray caused to be prepared and filed with the IRS false employment tax returns that concealed the cash wages and false individual income tax returns that underreported the income they earned from the motels.  Patel admitted that the conspiracy and his relevant conduct caused a loss greater than $250,000, and Ray admitted that the conspiracy and his relevant conduct caused a loss of approximately $129,512.

The count of conspiracy carries a maximum penalty of 5 years in prison and a fine of up to $250,000.  Sentencing for both Patel and Ray are scheduled for May 11, 2026.

Senior Counsel Lamparello credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Jenifer Piovesan in Newark, with the investigation leading to today’s guilty pleas.

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

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Defense counsel for Patel: Jed Silversmith, Esq., Jenkintown, Pennsylvania

Defense counsel for Ray: Ira Slovin, Esq., Haddon Heights, New Jersey 

NEWARK, N.J. – Joseph A. McCallum, Jr. 70, a former member of the Newark Municipal Council who also served on the Board of Directors of the Newark Community Economic Development Corporation (“NCEDC”), was sentenced on December 2, 2025 to 18 months’ imprisonment and one year of supervised release for participating in a scheme to obtain bribes and kickbacks and subscribing to a false personal tax return for 2018.  Malik Frederick, 65, a former consultant for developers seeking construction and real estate deals in Newark, was sentenced on December 4, 2025, to 25 months’ imprisonment and one year of supervised release for his role in the same scheme and for subscribing to a false personal tax return for 2017, Senior Counsel Philip Lamparello announced.

“Combatting public corruption in New Jersey is a top priority for our Office. Crimes like these erode public trust and undermine confidence in the institutions meant to serve the community.  We will continue to investigate and prosecute public officials and others who seek to enrich themselves at the public’s expense by engaging in bribery and kickback schemes. We thank our federal partners, including the FBI, IRS, and HUD, for their continued partnership in these cases.”

- Senior Counsel Philip Lamparello

McCallum previously pleaded guilty before U.S. District Judge William J. Martini to an Information charging him with one count of wire fraud for devising a scheme, using interstate wire communications, to defraud Newark and the NCEDC of the right to McCallum’s honest services and one count of subscribing to a false personal tax return for calendar year 2018. Frederick previously pleaded guilty before Judge Martini to participating in the honest services wire fraud conspiracy and one count of subscribing to a false personal tax return. 

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

From 2017 through February 2020, Frederick paid concealed bribes and kickbacks to McCallum, who was then a member of the Newark City Council, representing the West Ward of Newark, and an NCEDC Board member. These bribes and kickbacks were funded by developers, contracting companies, and other businesses seeking contracts and approvals principally related to development, construction, and real estate projects and deals in Newark. Frederick and others solicited these developers to hire Frederick’s consulting company for “access,” and were introduced to McCallum as the Councilman behind the project or deal of interest to them. McCallum then received concealed bribes and kickbacks from the fees that Frederick obtained from those who retained his company.

In exchange, McCallum used his official positions on the City Council and NCEDC to provide assistance in support of the projects and deals of interest to the developers and others who retained Frederick’s company. For those who refused to pay or were hesitant to pay the fees that Frederick charged, McCallum and Frederick intended to prevent them from obtaining contracts and work from the NCEDC and the City of Newark. McCallum and Frederick took significant steps to conceal these bribes and kickbacks and other material aspects of their arrangement and dealings with these developers and others.

The bribes and kickbacks that McCallum sought and received through Frederick included:

• On April 11, 2017, McCallum accepted a $16,000 check from Frederick’s company bank account in exchange for McCallum’s official assistance and favors for Frederick as specific opportunities related to construction projects in Newark arose that were of interest to the contracting company.
• On October 29, 2018, McCallum accepted a $25,000 check from Frederick’s company bank account in exchange for McCallum’s official assistance to Developer 1’s company in acquiring City-owned properties in the West Ward for a redevelopment project.
• From October 2019 through early 2020, McCallum also sought to obtain bribes from Frederick funded by Developer 2’s company, which was seeking to acquire and redevelop properties in Newark, including multiple City-owned lots in the West Ward and the City Council’s passage of a resolution for a redevelopment agreement related to those lots.  On October 9, 2019, McCallum accepted $500 in cash from Frederick at a cigar lounge in Newark, funded by one of the monthly payments that Developer 2’s company made to Frederick’s company in relation to the redevelopment agreement that Developer 2 sought. In addition, in early 2020, McCallum, using Frederick to assist him, sought a balloon payment of $100,000 from Developer 2 once McCallum secured the City Council’s approval of the redevelopment agreement with the passage of the official resolution approving the deal.
• From October 2019 through January 2020, McCallum planned to share payments with Frederick from a business owner in Newark seeking to sell property to and from Developer 1, who was seeking to acquire and develop the property, in exchange for McCallum’s official assistance to ensure Developer 1’s acquisition and eventual development of City-owned lots adjoining the Seller’s Property.  

In addition to paying the bribes and kickbacks to McCallum and attempting to obtain payments to be used for bribes and kickbacks, Frederick sought to have a modular home company that was in negotiations with the NCEDC on a development project in Newark to retain Frederick’s company and obtain a $40,000 payment. Frederick intended to share the $40,000 payment with a NCEDC official (labeled “Co-Conspirator 2” in the Information) who referred Frederick to the modular home company and expected a portion of whatever Frederick would be paid. After the modular home company refused to retain Frederick’s company, it did not receive a contract from the NCEDC.

Senior Counsel Lamparello credited special agents of the FBI’s Newark Field Office, under the direction of Special Agent in Charge Stefanie Roddy; special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Jenifer L. Piovesan, 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 Shawn A. Rice, with the investigation leading to today’s conviction.

The government is represented by Assistant U.S. Attorneys Francesca Liquori and Matthew Specht of the U.S. Attorney’s Office’s Special Prosecutions Division.

All other co-conspirators identified in the Information are presumed innocent until proven guilty. 

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Defense counsel:

Ray Hamlin, Esq. (for Joseph A. McCallum, Jr.)

Hassen Abdellah, Esq. (for Malik Frederick)

NEWARK, N.J. – Six individuals were charged for their participation in a years-long scheme to trade securities based on material non-public information (“MNPI”), Senior Counsel Philip Lamparello announced.

“As alleged, the defendants engaged in insider trading and market manipulation on a massive scale—using stolen information, falsified data, and fake press releases to mislead investors and enrich themselves. This Office will continue to pursue complex financial fraud schemes that threaten the fairness and transparency of our markets and harm individual investors.”

- Senior Counsel Philip Lamparello

“The FBI takes allegations of insider trading with the utmost seriousness,” said FBI Newark Special Agent in Charge, Stefanie Roddy. “Shoukat and his co-conspirators benefitted greatly from their years-long scheme, and cheated the system to reap their rewards. As complex as a financial fraud scheme is, the FBI will endeavor to stay one step ahead of these alleged criminals.”

Muhammad Saad Shoukat (“Saad Shoukat”), 33, his brothers Muhammad Arham Shoukat (“Arham Shoukat”), 35, and Muhammad Shahwaiz Shoukat (“Shahwaiz Shoukat”), 36—all dual-U.S. and Pakistani citizens—and his friends Daniyal Khan (“Khan”), 33, a dual-U.K and Pakistani citizen, and Izunna Okonkwo (“Okonkwo”), 33, a dual-U.S. and Nigerian citizen, were charged in a complaint that was unsealed today.

Gyunho Justin Kim (“Kim”), 32, of San Francisco, California, was charged in a separate complaint and made an initial appearance before the Honorable Michael A. Hammer, United States Magistrate Judge, on December 12, 2025.

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

The charges in this case arise from three overlapping securities fraud schemes that occurred at various points from June 2020 through February 2024: (i) a multi-million-dollar insider trading scheme (the “Insider Trading Scheme”); (ii) a scheme to manipulate the stock price of a biopharmaceutical company developing a treatment for breast cancer (“Olema Manipulation Scheme”); and (iii) a scheme to manipulate the stock price of a different biopharmaceutical company seeking to prevent opioid overdoses (“Opiant Manipulation Scheme,” together with the Olema Manipulation Scheme, the “Market Manipulation Schemes”).

The Insider Trading Scheme

Kim worked at an investment bank that was actively involved in multiple mergers and acquisitions of publicly traded healthcare and biopharmaceutical companies. Kim obtained MNPI about many of these pending deals, either by working on deals directly or from others who did. Kim illegally shared MNPI about at least nine of these deals with Saad Shoukat, who traded on that information by himself and through others. Saad Shoukat also tipped off others—including Arham Shoukat, Shahwaiz Shoukat, Khan, and Okonkwo—who similarly traded and profited from the MNPI. Overall, Saad Shoukat and his co-conspirators received illicit profits from the Insider Trading Scheme totaling at least $41 million.

Olema Manipulation Scheme

Saad Shoukat, Arham Shoukat, and others actively manipulated the stock price of Olema, a publicly traded company. Olema focused on developing breast cancer treatment through a drug called OP-1250. From the spring of 2021, Saad Shoukat and Arham Shoukat began investing in Olema stock and encouraged others to invest in it. After buying substantial stock in Olema, Saad Shoukat, Arham Shoukat, and others accessed confidential information showing that OP-1250 was less effective than Saad Shoukat and Arham Shoukat had hoped. Saad Shoukat, Arham Shoukat, and others then falsified the OP-1250 data the co-conspirators had illegally accessed, and publicly disseminated it in a manner that made it look like the data was real and came from Olema. The release of the false data—which inflated the drug’s efficacy—temporarily caused Olema’s stock price to increase, during which Saad Shoukat, Arham Shoukat, and others profited and avoided losses by selling large numbers of shares in Olema stock.

Opiant Manipulation Scheme

Saad Shoukat, his brothers, and others also manipulated the stock price of Opiant, another publicly traded company. Opiant was developing an opioid overdose treatment. Kim provided MNPI to Saad Shoukat about a company seeking to acquire Opiant. Based on that MNPI, Saad Shoukat and others bought Opiant stock. But that potential acquisition stalled, and Saad Shoukat and others were stuck with their stock purchases. In response, in or around April 2022, Saad Shoukat, his brothers, and others—using a fake Opiant website and fake Opiant email addresses that appeared legitimate—caused the publication of a fake press release announcing a purported merger and acquisition involving Opiant and another company. The fake press release drove up Opiant’s stock approximately 29%. Saad Shoukat, his brothers, and others profited by selling off shares during that spike, causing substantial losses to victim investors.

If convicted, the defendants face the following maximum sentences:

Senior Counsel Lamparello credited special agents of the FBI, under the direction of Special Agent in Charge Stefanie Roddy, with the investigation.

The government is represented by Assistant U.S. Attorneys George Barchini of the Bank Integrity, Money Laundering, and Recovery Unit and Aaron Webman, Deputy Chief of the Economic Crimes Unit in Newark.

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

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Defense counsel:

Muhammad Saad Shoukat: Chris Christie, Morristown, NJ

Muhammad Arham Shoukat: Chris Christie, Morristown, NJ

Muhammad Shahwaiz Shoukat: Chris Christie, Morristown, NJ

Daniyal “Dan” Khan: Unknown

Izunna “Zunnie” Okonkwo: Scott McBride, Roseland, NJ and Alexey Tarasov, Rosenberg, Texas.

Gyunho Justin Kim: Timothy Crudo, San Francisco, CA

NEWARK, NJ. –  A New Jersey business owner was sentenced to 87 months in prison for conspiring to defraud Medicare of $172 million, commit money laundering, and pay kickbacks and bribes in violation of the Anti-Kickback Statute, Senior Counsel Philip Lamparello announced.

U.S. District Judge Michael E. Farbiarz imposed the sentence on Aaron Neil Williamsky, 65, of Marlboro, New Jersey, in Newark federal court on November 17, 2025.  Williamsky was also ordered to pay more than $172 million in restitution.

Williamsky previously pleaded guilty to conspiracy to commit health care fraud, conspiracy to commit wire fraud, conspiracy to commit money laundering, and conspiracy to violate the federal Anti-Kickback Statute.   

“As the Defendant admitted in open court, he conspired to steal more than $172 million from the American public by submitting fraudulent doctors’ orders for reimbursement through a web of more than twenty durable medical equipment companies located in New Jersey. The sentence Williamsky received reflects the seriousness of his crimes.  Together with our law enforcement partners, this Office will continue to investigate and prosecute people who engage in fraud at the expense of American taxpayers.”

- Senior Counsel Philip Lamparello

“Williamsky’s sentence of more than 7 years reflects the severity of his crime and reemphasizes the FBI’s commitment to holding fraudsters accountable,” said Special Agent in Charge of FBI Newark, Stefanie Roddy.

“This defendant committed an egregious amount of durable medical equipment fraud. Rampant schemes like his jeopardize the availability of federal health care program funds intended to support millions of beneficiaries,” said Special Agent in Charge Naomi D. Gruchacz of the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG). “HHS-OIG is committed to working with our law enforcement partners to bring those to justice that prioritize greed over patient care.”  

“This sentencing demonstrates that fraudsters who target VA programs and services will be found and held accountable,” said Special Agent in Charge Christopher F. Algieri with the Department of Veterans Affairs Office of Inspector General’s Northeast Field Office. “The VA OIG will continue to work with our law enforcement partners to halt schemes that divert funds from our nation’s deserving veterans.”

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

From 2015 to 2019, Williamsky led and organized a fraud scheme in which he opened or purchased durable medical equipment (“DME”) supply companies, submitted fraudulent claims to Medicare on behalf of those companies, closed the companies one-by-one to avoid Medicare audits and recoupment, and then opened or purchased new DME companies.  He concealed his ownership interest in this web of more than twenty DME companies by employing others to serve as “nominee,” or straw owners.

To generate fraudulent orders, Williamsky and his co-conspirators hired marketing companies to make unsolicited calls offering elderly patients free orthotic braces.  In exchange for each patient who agreed to accept DME, Williamsky paid a kickback to the marketing companies in violation of the federal Anti-Kickback Statute. To conduct the scheme, Williamsky used sham contracts and invoices that falsely characterized kickbacks he paid as “business process outsourcing” and “marketing expenses.”  To evade detection and avoid taxes, Williamsky transferred a portion of the fraud proceeds to overseas bank accounts, where the funds were laundered through shell corporations and foreign real estate holdings.

Senior Counsel Lamparello credited special agents and specialists of the FBI, under the direction of Special Agent in Charge Stefanie Roddy in Newark; the Department of Health and Human Services, Office of Inspector General, under the direction of Special Agent in Charge Naomi Gruchacz; and the Department of Defense, Defense Criminal Investigative Service, under the direction of Christopher Silvestro; and the U.S. Department of Veterans Affairs Office of Inspector General, under the direction of Special Agent in Charge Christopher F. Algieri with the investigation leading to the charge.

The government is represented by Assistant U.S. Attorney Garrett J. Schuman of the Health Care Fraud and Opioid Enforcement Unit.

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Defense Counsel for Aaron Williamsky: Jeffrey M. Kolansky, Philadelphia, PA

NEWARK, N.J. – A Florida man pleaded guilty to conspiring to bill Medicare for medically unnecessary prescriptions, Senior Counsel Philip Lamparello announced.

Eric Van Vleet, 30, of Delray Beach, Florida, pleaded guilty to a superseding information charging him with conspiracy to commit health care fraud and conspiracy to violate the federal Anti-Kickback Statute, before U.S. District Judge Madeline Cox Arleo in Newark federal court.

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

From February 2018 to September 2019, Van Vleet operated Hype Med LLC, which generated medically unnecessary prescriptions through a telemarketing and telemedicine scheme.   As part of the health care fraud and kickback conspiracy, Van Vleet and Hype Med identified Medicare beneficiaries to target for expensive drugs.  Call center employees contacted beneficiaries to pressure them to agree to try expensive medications, such as pain creams, scar creams, eczema creams, migraine medication, and a combination of prescription medications to be used as a “foot soak.”  Van Vleet and Hype Med then sent recordings of calls with the beneficiaries, along with pre-marked prescription pads for particular drugs that would yield exorbitant reimbursements, to telemedicine companies. Hype Med paid the telemedicine companies kickbacks for every beneficiary referred for a prescription, and the telemedicine companies paid doctors to approve the prescriptions.

Van Vleet then directed the prescriptions to pharmacies, including Apogee Bio-Pharm LLC, located in Edison, New Jersey, with which Hype Med had a kickback arrangement. The pharmacies filled the prescriptions and sought reimbursement from federal health care benefit programs, including Medicare. The pharmacies, including Apogee, then paid a portion of each reimbursement to Hype Med as a kickback.  Van Vleet and Hype Med received at least approximately $343,683.69 in kickback payments from the owners of Apogee. The principals of Apogee—William Welwart, Ethan Welwart, and Gary Kaczka—are charged with health care fraud and related offenses in a separate indictment.  Elan Yaish, former President of Apogee, previously pleaded guilty to an information charging conspiracy to violate the federal anti-kickback statute. As a result of medically unnecessary prescriptions generated by Hype Med, Medicare paid at least $1,399,812.52 based on false and fraudulent claims.

The health care fraud conspiracy charge carries a maximum potential penalty of 10 years in prison, and the charge of conspiracy to violate the Anti-Kickback Statute carries a maximum potential penalty of 5 years in prison.  Each count is also punishable by a fine of $250,000, or twice the gain or loss from the offense, whichever is greatest.

Senior Counsel Lamparello credited special agents of the FBI, under the direction of Special Agent in Charge Stefanie Roddy in Newark, U.S. Department of Health and Human Services Office of Inspector General, under the direction of Special Agent in Charge Naomi Gruchacz, and U.S. Department of Defense, Office of Inspector General, Defense Criminal Investigative Service, Northeast Field Office, under the direction of Special Agent in Charge Christopher M. Silvestro, with the investigation.

The government is represented by Assistant U.S. Attorney Katherine M. Romano, Chief of the General Crimes Unit in Newark.

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Defense counsel: Michael Baldassare, Esq.

NEWARK, N.J. – A Connecticut man was sentenced yesterday to 30 months’ imprisonment for his role in a multimillion-dollar durable medical equipment (DME) health care fraud and kickback scheme, Senior Counsel Philip Lamparello announced.

Jesse Foote, 60, of Fairfield, Connecticut, previously pleaded guilty before U.S. District Judge Esther Salas in Newark federal court to a two-count information charging him with conspiracy to violate the Federal Anti-Kickback statute and conspiracy to commit health care fraud.

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

From December 2017 to March 2021, Foote conspired with overseas telemarking call centers, DME suppliers, telemedicine companies, and doctors to submit fraudulent claims to health care benefit programs, including Medicare and TRICARE, through a circular scheme of kickbacks and bribes. Foote controlled a marketing company through which he purchased patient “leads” from overseas telemarking companies. The leads consisted of information about Medicare and other beneficiaries and pre-written doctors’ orders for DME. The telemarketing call centers targeted Medicare beneficiaries and others with health insurance to persuade them to accept DME, including orthotic braces, without regard to medical necessity.  Foote paid bribes and kickbacks to telemedicine companies, which in turn paid bribes and kickbacks to doctors, to obtain doctors’ orders for DME based on the leads. The doctors often approved the DME orders without having any contact with the beneficiary and without making a bona fide assessment that the DME was medically necessary. Foote then sold the signed doctors’ orders to others with whom he had kickback arrangements. The doctors’ orders were ultimately submitted to DME suppliers, including DME suppliers controlled by Foote, which submitted fraudulent claims for reimbursement to health care benefit programs including Medicare, TRICARE, and private insurance companies.

In total, Foote and his co-conspirators caused the submission of false and fraudulent claims to health care benefit programs totaling more than $7.8 million for DME.

In addition to the prison term, Judge Salas sentenced Foote to three years of supervised release and ordered him to pay $7,878,991.56 in restitution.

Senior Counsel Lamparello credited special agents of the FBI, under the direction of Special Agent in Charge Stefanie Roddy in Newark, U.S. Department of Health and Human Services Office of Inspector General, under the direction of Special Agent in Charge Naomi Gruchacz, and U.S. Department of Defense, Office of Inspector General, Defense Criminal Investigative Service, Northeast Field Office, under the direction of Special Agent in Charge Christopher M. Silvestro, with the investigation.

The government is represented by Assistant U.S. Attorney Katherine M. Romano, Chief of the General Crimes Unit in Newark.

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Defense counsel: Charles Alvarez, Esq.      

CAMDEN, N.J. – A Mount Laurel man admitted to engaging in a scheme to defraud banks using checks stolen from the U.S. mail and fraudulent debit cards, Senior Counsel Philip Lamparello announced.

Kharon Parson-Wright, 28, of Mount Laurel, New Jersey, pleaded guilty before U.S. District Judge Edward S. Kiel to an information charging him with one count of conspiring to commit bank fraud and one count of aggravated identity theft.

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

Parson-Wright conspired with Yasmene Johnson, Dante Ford, and others to commit bank fraud with checks stolen from the U.S. mail. Parson-Wright, Ford, and others stole U.S. mail from blue U.S. mail collection boxes.  Ford and other members of the conspiracy then created counterfeit versions of the stolen checks or altered the stolen checks by increasing the value of the checks and changing the name of the payee either to a member of the conspiracy or somebody else recruited by the conspiracy. Parson-Wright admitted that he and others negotiated the counterfeit or altered checks and then attempted to the withdraw the funds before the bank learned that the checks were illegitimate. The conspiracy involved the negotiation of checks at banks across southern New Jersey and elsewhere, with checks written for tens of thousands dollars.

As a separate part of their conspiracy, Parson-Wright connected Johnson with a bank employee who created fraudulent debit cards in the name of victims who held accounts at the bank.  Parson-Wright and his co-conspirator used one of the fraudulently issued debit cards to make purchases and ATM withdrawals in New Jersey.  Parson-Wright admitted that the bank fraud conspiracy resulted in actual losses exceeding $424,000 and intended losses exceeding $1,500,000.

The count of conspiracy carries a maximum penalty of 30 years in prison and a fine of up to $1,000,000, or twice the gross loss to the victim or gain to the defendant, whichever is greatest.  The count of aggravated identity theft carries a statutory mandatory penalty of two years in prison, which must run consecutively to any other term of imprisonment, and a fine of $250,000, or twice the gross loss to the victim or gain to the defendant, whichever is greatest.  Sentencing is scheduled for April 20, 2026.

Johnson previously pleaded guilty to the same two offenses for her role in the conspiracy and is scheduled to be sentenced in March 2026.  Ford and three other defendants were previously sentenced in 2025 after pleading guilty to participating in the same bank fraud conspiracy: Ford was sentenced to 27 months’ incarceration, Donovan Bunch was sentenced to 33 months, Tracy Felder-Carter was sentenced to 18 months, and Quamell Keyes-Griffin was sentenced to 18 months.

Senior Counsel Lamparello credited postal inspectors of the U.S. Postal Inspection Service – Philadelphia Division, under the direction of Inspector in Charge Christopher A. Nielsen, with the investigation leading to this plea.  He also thanked the Mount Laurel Police Department, under the direction of Chief Timothy Hudnall, for its valuable assistance in the investigation.

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

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Defense counsel: Justin Capek, Esq., Mount Laurel, New Jersey

NEWARK N.J. – A Washington Township man was sentenced to 49 months’ imprisonment for fraudulently seeking more than $1.4 million from the IRS by filing false tax returns claiming COVID-19-related employment tax credits, for laundering the proceeds from that scheme, and for stealing more than $180,000 from an elderly customer at the car dealership where he worked, Senior Counsel Philip Lamparello announced.

James J. Mastrogiovanni, 45, of Washington Township, pleaded guilty before U.S. District Judge William J. Martini in Newark federal court on May 20, 2025, to an information charging him with one count of conspiracy to defraud the United States, one count of mail fraud, one count of money laundering, and one count of access device fraud.  U.S. District Judge William J. Martini imposed the sentence on December 4, 2025, in Newark federal court.

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

During the pandemic, Mastrogiovanni engaged in a scheme with Leon Haynes, a tax preparer, to exploit COVID-19 relief programs to line his own pockets.  From in or around March 2021 through in or around December 2022, Mastrogiovanni and Haynes prepared and filed with the IRS false and fraudulent Forms 941 on behalf of Mastrogiovanni, his family members, and others, claiming tax refunds intended to help struggling small businesses.  All of the Forms 941 prepared in furtherance of the scheme were false and fraudulent because they listed employees and wages that, in fact, did not actually exist.  Neither Mastrogiovanni nor any of his family members owned or operated a business, let alone had paid employees.  Mastrogiovanni claimed at least $1,443,409 in tax credits, and as a result of the scheme, the U.S. Treasury disbursed at least $545,692 to Mastrogiovanni and his family members.

Haynes was found guilty by a jury on November 10, 2025 of 15 counts of aiding and assisting in the preparation and presentation of false tax returns, one count of mail fraud, and two counts of tax evasion for his scheme seeking more than $170 million in fraudulent tax refunds from the IRS by causing more than 1,900 false tax returns to be filed on behalf of himself and his clients.  Haynes’s sentencing is scheduled for March 12, 2026.

In addition to the tax fraud scheme, from on or about June 19, 2023 through on or about December 7, 2023, Mastrogiovanni engaged in a separate scheme to steal more than $180,000 from an 85-year old victim.  The victim presented a check to Mastrogiovanni to purchase a vehicle at the car dealership where Mastrogiovanni worked.  Mastrogiovanni later used the routing and checking account numbers on the check to make unauthorized personal transactions from the account until the account was empty. 

In addition to the prison term, Judge Martini sentenced Mastrogiovanni to three years of supervised release following Mastrogiovanni’s term of imprisonment and ordered restitution in the amount of $726,862.

Senior Counsel Lamparello credited special agents the IRS – Criminal Investigation, under the direction of Special Agent in Charge Jenifer L. Piovesan; special agents of the Social Security Administration, Office of the Inspector General, under the direction of Special Agent in Charge Amy Connelly; postal inspectors from the U.S. Postal Inspection Service, under the direction of Inspector in Charge Christopher Nielsen, Philadelphia Division; and officers of the Mahwah Police Department, under the direction of Chief Timothy O’Hara, with the investigation.

The government is represented by Assistant U.S. Attorneys Matthew Stark and Fatime Meka Cano of the Economic Crimes Unit in Newark.

The District of New Jersey COVID-19 Fraud Enforcement Strike Force is one of five strike forces established throughout the United States by the U.S. Department of Justice to investigate and prosecute COVID-19 fraud. The strike forces focus on large-scale, multi-state pandemic relief fraud perpetrated by criminal organizations and transnational actors. The strike forces are interagency law enforcement efforts, using prosecutor-led and data analyst-driven teams designed to identify and bring to justice those who stole pandemic relief funds. 

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

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Defense Counsel for Mastrogiovanni: Frank Agostino, Esq.

TRENTON, N.J. – An Ocean County, New Jersey man was sentenced on December 2, 2025, to 168 months in prison for receiving videos and images depicting child pornography, Senior Counsel Philip Lamparello announced.

Daniel Nilla, 37, of Brick, New Jersey, previously pleaded guilty before U.S. District Judge Michael A. Shipp in Trenton federal court to an information charging him with three counts of receipt of child pornography.

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

Between December 2021 and April 2023, Nilla communicated with at least five minor victims on a multimedia instant messaging application. He knew the victims were minors when he communicated with them. During the communications, Nilla directed the victims to send him images and videos of themselves engaging in sexually explicit conduct, which Nilla used for his sexual gratification.

In addition to the prison term, Judge Shipp sentenced Nilla to ten years of supervised release.

Senior Counsel Lamparello credited special agents of the FBI, under the direction of Special Agent in Charge Stefanie Roddy in Newark, with the investigation. Senior Counsel Philip Lamparello also thanked special agents of the FBI Kansas City, Kansas Division, under the direction of Special Agent in Charge Stephen A. Cyrus, and the City of Edwardsville, Kansas Police Department, under the direction of Chief of Police Rance Quinn.

This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section (CEOS) in the Justice Department’s Criminal Division, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit: https://www.justice.gov/psc

The government is represented by Assistant U.S. Attorney Matt Belgiovine of the Criminal Division in Trenton.

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Defense counsel: Steven Cappetta, Esq.