District of New Jersey

NEWARK, N.J. – The Department of Justice’s Civil Rights Division and the U.S. Attorney’s Office for the District of New Jersey today announced that they believe the Cumberland County Jail failed to take measures to prevent inmate suicides and provide adequate mental health care.

The Department concluded that there is reasonable cause to believe that the facility failed to screen for or provide adequate mental health treatment to inmates at risk of self-harm and suicide, in violation of the Eighth and 14th Amendments of the Constitution. The Department alleged that inmates faced a heightened risk of self-harm and suicide due to the jail’s failure to provide medication-assisted treatment, where clinically indicated, to inmates experiencing unmedicated opiate withdrawal.

“The opioid epidemic continues to afflict communities across the country,” Acting U.S. Attorney Rachael A. Honig said. “By providing medication-assisted treatment to inmates experiencing opiate withdrawal, officials at jails and prisons can take significant steps to both combat that epidemic and protect the constitutional rights of incarcerated individuals. We have been encouraged by the cooperation of Cumberland County Jail officials throughout our investigation, and their stated commitment to ensure the safety and constitutional rights of their inmates. We look forward to continuing to work with them to resolve these significant concerns.”

“Our investigation revealed that Cumberland County fails to provide adequate mental health care to inmates at risk of self-harm and suicide,” Acting Assistant Attorney General for Civil Rights John B. Daukas said. “We look forward to working with County officials to ensure that the jail provides constitutionally adequate care, including medication-assisted treatment for inmates experiencing unmedicated opiate withdrawal, when appropriate.”

Although the Cumberland County Jail, located in Bridgeton, New Jersey, recently began providing medication-assisted treatment to inmates experiencing opiate withdrawal, the funding for such future treatment remains uncertain. 

As required by the Civil Rights of Institutionalized Persons Act (CRIPA), the Department provided the facility with written notice of the supporting facts for these alleged violations and the minimum remedial measures necessary to address them.   

The Civil Rights Division and the U.S. Attorney’s Office for District of New Jersey initiated the investigation in June 2018 under CRIPA, which authorizes the Department to take action to address a pattern or practice of deprivation of constitutional rights of individuals confined to state or local government-run correctional facilities.

Additional information about the Civil Rights Division of the Justice Department is available on its website at www.justice.gov/crt.  Individuals who believe their civil rights may have been violated may file a complaint with the U.S Attorney’s Office at http://www.justice.gov/usao-nj/civil-rights-enforcement/complaint.

The government is represented by Assistant U.S. Attorney Michael E. Campion, Chief of the Civil Rights Unit; Assistant U.S. Attorney Kristin Vassallo, Deputy Chief of the Civil Division; Mary Bohan, Deputy Chief of the Civil Rights Division’s Special Litigation Section; Marlysha Myrthil, Senior Trial Attorney, Special Litigation Section; and Curtis Harris, Trial Attorney, Special Litigation Section.

NEWARK, N.J. – A former director of medical and scientific affairs at a New Jersey pharmaceutical company was arrested today on charges of stealing and illegally transmitting trade secrets, Acting U.S. Attorney Rachael A. Honig announced.

Shafat A. Quadri, 57, of North Potomac, Maryland, is charged by complaint with one count of theft of trade secrets and one count of unauthorized transmission of trade secrets. He is made his initial appearance by videoconference before U.S. Magistrate Judge Cathy L. Waldor and was released on $100,000 unsecured bond.

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

“Company 1” is a based in New Jersey and is one of the largest pharmaceutical companies in the world, creating vaccines, medicines and consumer healthcare products. Company 1 is incorporated in New Jersey and maintains email servers in New Jersey.

In October 2019, Company 1 contacted the FBI to report suspicious activity by Quadri, who had been employed there since 2015 as director of medical and scientific affairs, immune oncology. Company 1’s global immuno-oncology department specializes in research and development related to the diagnosis and treatment of more than 30 cancer types with biopharmaceutical products. Quadri had access to sensitive intellectual property of the company, including research and other trade secrets. He remained at the company through Sept. 30, 2019.

Company 1 reported that an internal investigation revealed that before he left in September 2019, Quadri copied and removed thousands of files containing Company 1’s proprietary information, including research protocols, compound data, strategic plans. Quadri used unauthorized USB devices and personal email accounts to copy, transfer, and retain proprietary information from Company 1. Some documents that were copied and removed were outside of Quadri’s area of work responsibility. Quadri was not authorized to keep or transfer any sensitive or proprietary documents. 

A subsequent review of Quadri’s work-issued computer further revealed the theft and transmission of Company 1 trade secrets, including:

• Quadri used his Company 1 email account to send Company 1 proprietary documents to private email accounts used by Quadri. At least twelve of Company 1’s documents were sent to Quadri’s private email addresses, some of which contained proprietary information related to an immunotherapy drug that helps fight certain cancers and is identified as Company 1’s leading oncology asset.

 

• Quadri used his Company 1 email account to send three of Company 1’s documents containing proprietary information to an email address used by Quadri and controlled by Quadri’s subsequent employer (Company 2), one of Company 1’s competitors. At least one of these documents related to research in the pre-indication stage, which could cause Company 1 significant loss as competitors would not have knowledge of these development plans.

 

The count of theft of trade secrets charge carries a maximum potential penalty of up to 10 years in prison and a fine of up to $250,000, or twice the gross pecuniary gain or loss.

Acting U.S. Attorney Honig credited special agents of the FBI’s Newark Division, under the direction of Special Agent in Charge George M. Crouch Jr., with the investigation leading to today’s charges. She also thanked security officials at Company 1 and Company 2 for their assistance. 

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

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

NEWARK, N.J. – An Essex County, New Jersey, man today admitted assaulting and carjacking at knifepoint a U.S. Postal Service employee, Acting U.S. Attorney Rachael A. Honig announced.

Wallace Johnson, 32, of Newark, pleaded guilty before U.S. District Judge John Michael Vazquez in Newark federal court to an indictment charging him with carjacking and assaulting a federal employee.

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

Johnson admitted that on June 6, 2020, he walked up to a postal employee who was sitting in the car’s driver seat while on a break from delivering mail in Newark. Johnson held a box cutter against the postal employee’s neck and the box cutter’s blade pierced the postal employee’s skin, causing a small laceration. While Johnson held the box cutter against the postal employee’s neck, he demanded that the postal employee get out of the car and leave everything inside of the car. After the postal employee got out of the car, Johnson got into the car and drove away.

Shortly thereafter, law enforcement officers saw the carjacked car driving at a very high rate of speed and attempted to conduct a car stop, not knowing at that time about the carjacking.  During a subsequent car chase, Johnson crashed the car and fled on foot. Several minutes later, during a canvass of the nearby neighborhood, law enforcement officers found Johnson as he hid behind a parked car and then arrested him following a foot pursuit. Law enforcement officers recovered the postal employee’s cellular telephone and the boxcutter that Johnson used during the assault and carjacking.

The charge of assaulting a federal employee carries a maximum potential penalty of 20 years in prison. The charge of carjacking carries a maximum potential penalty of 15 years in prison. Each of these counts carries a maximum fine of $250,000. Sentencing is scheduled for May 18, 2021.

Acting U.S. Attorney Rachael A. Honig credited members of the Newark Police Department, under the direction of Public Safety Director Anthony F. Ambrose and postal inspectors of the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge Raimundo Marrero in Newark, with the investigation leading to today’s guilty plea.

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

NEWARK, N.J. – A Chinese national who held high-level executive positions at chemical and pharmaceutical companies in China was sentenced today to 28 months in prison for drug and money laundering offenses, including the importation of fentanyl analogues into New Jersey, Acting U.S. Attorney Rachael A. Honig announced.

According to the charging documents and statements made in court:

Hao Qin, (a/k/a “John Chin”), 34, of Shanghai, China, was identified as being responsible for importing over 500 kilograms of controlled substance analogues into the United States. Among the substances imported by Qin and his conspirators through Qin’s chemical business were furanyl fentanyl and 4-FIBF, two potent analogues of the opioid drug fentanyl. 

Qin also laundered the proceeds of his international drug business, including accepting wire payments designed to pay off a $500,000 drug debt incurred by one of his former clients in the United States.

In addition to the prison term, U.S. District Judge Claire C. Cecchi sentenced Qin to three years of supervised release.

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

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

The government is represented by Assistant U.S. Attorney Melissa M. Wangenheim, Chief of the Office’s Opioid Abuse Prevention and Enforcement Unit, and Assistant U.S. Attorney Ryan L. O’Neill, also of the Office’s Opioid Abuse Prevention and Enforcement Unit.

NEWARK, N.J. – A Middlesex County, New Jersey, man was sentenced today to 75 months in prison for illegally possessing a loaded 9mm HiPoint pistol, Acting U.S. Attorney Rachael A. Honig announced. 

Rashawn S. Williams of Woodbridge Township, New Jersey, previously pleaded guilty by videoconference before U.S. District Judge Brian R. Martinotti to an information charging him with one count of being a felon in possession of a firearm and ammunition. Judge Martinotti imposed the sentence by videoconference today.

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

On Feb. 6, 2019, in an Irvington, New Jersey parking lot, Williams knowingly possessed a 9mm HiPoint pistol loaded with at least one round of 9mm ammunition. He and a conspirator robbed four individuals at gunpoint. Williams fired a shot, striking one of the victims in the leg.

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

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

Acting U.S. Attorney Honig credited special agents and task force officers of the Drug Enforcement Administration, under the direction of Special Agent in Charge Susan A. Gibson; the Bureau of Alcohol, Tobacco, Firearms & Explosives, under the direction of Special Agent in Charge Charlie J. Patterson; and the Irvington Police Department, under the direction of Police Chief Tracy Bowers, with the investigation leading to today’s sentence. She also thanked the Essex County Prosecutor’s Office, under the direction of Acting Essex County Prosecutor Theodore N. Stephens II, for its assistance with the case.

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

NEWARK, N.J. – The former secretary treasurer of Local 2254 of the American Federation of State, County, and Municipal Employees Union (AFSCME) today admitted embezzling $40,455 from the union’s checking and savings accounts, Acting U.S. Attorney Rachael Honig announced.

Linda Rogers, 71, of Jersey City, pleaded guilty by videoconference before U.S. District Judge Stanley R. Chesler to Count One of an indictment charging her with embezzlement from the union, located at Jersey City Medical Center (JCMC).

According to the Indictment and the plea allocution:

Rogers was employed at JCMC and held a part-time position at Local 2254 as its secretary treasurer. In that role, she had sole control over the union’s checking and savings accounts. From July 2016 through August 2017, her daughter, Jennifer Rogers, who also recently pleaded guilty to the same charges, deposited 112 unauthorized checks from Local 2254 to their joint checking and savings accounts, totaling $35,267. From October 2016 through December 2016, Linda Rogers made six wire transfers from Local 2254’s savings account, totaling $5,188, into her personal credit card account. None of the expenditures were authorized, or for legitimate union purposes.

The count to which Linda Rogers pleaded guilty carries a maximum penalty of five years in prison and a $250,000 fine. Sentencing is scheduled for May 25, 2021.

Acting U.S. Attorney Honig credited investigators of the U.S. Department of Labor, Office of Labor Management Standards, under the direction of Adriana Vamvakas, Regional Director; and special agents of the Department of Labor (OIG), New York Region, under the direction of Special Agent in Charge Michael Mikulka, with the investigation leading to today’s guilty plea.

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

NEWARK, N.J. – A member of the New Jersey Grape Street Crips was sentenced today to 100 months in prison for his role in an attempted murder charged as part of a RICO conspiracy, as well as narcotics trafficking, acting U.S. Attorney Rachael A. Honig announced.

Sean Hills, a/k/a “Half A Brain,” a/k/a “Half,” a/k/a “Rydaman,” 29, of Newark, previously pleaded guilty before U.S. District Judge Madeline Cox Arleo to an indictment that charged him with Racketeer Influenced and Corrupt Organizations (RICO) conspiracy and distribution of cocaine. Judge Arleo imposed the sentence by videoconference today.

Since 2015, more than 80 members of the New Jersey Grape Street Crips have been convicted federally in connection with multiple murders, attempted murders, shootings, drug trafficking, firearms charges, and witness intimidation as part of a coordinated investigation by the FBI, the Drug Enforcement Administration (DEA), and local law enforcement partners.

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

Hills is a long-time member of the New Jersey Grape Street Crips who has the gang’s senior hierarchy tattooed on his face. On Dec. 15, 2012, Hills repeatedly shot Victim-1 near the area of South 14th Street and 14th Avenue, an area that Hills and other gang members were trying to take over as part of their drug-trafficking territory. As part of the sentencing, the Court also considered a shooting Hills committed on Feb. 1, 2013, when he shot Victim-2 numerous times. Both victims survived the attacks. Hills was additionally sentenced for separate instances of possession with intent to distribute of cocaine. In addition to the prison term, Judge Arleo sentenced Hills to three years of supervised release.

Acting U.S. Attorney Honig credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark, and special agents of the Drug Enforcement Administration, under the direction of Special Agent in Charge Susan A. Gibson in Newark, with the investigation leading to today’s sentencing. She also thanked the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Theodore N. Stephens II, police officers and detectives of the Newark Police Department, under the direction of Public Safety Director Anthony F. Ambrose, and the Essex County Sheriff’s Office, under the direction of Armando B. Fontoura, for assistance.

The government is represented by Assistant U.S. Attorney Osmar J. Benvenuto of the Criminal Division and Jamel Semper, Chief of the Organized Crime and Gangs Unit in Newark.

CAMDEN, N.J. – A Burlington County, New Jersey, man today admitted his role in a drug-trafficking organization that distributed heroin and cocaine in Camden, Acting U.S. Attorney Rachael A. Honig announced.

Dwight Williams, 29, of Mount Holly, New Jersey, pleaded guilty by videoconference before U.S. District Judge Renée Marie Bumb to an information charging him with one count of conspiracy to possess and possess with intent to distribute heroin and cocaine

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

An investigation led by the FBI used surveillance tactics, confidential informants, consensual recordings, over 40 controlled drug purchases, record checks, a GPS vehicle tracker, and several court-authorized wiretaps to uncover the operations a drug-trafficking organization based on the 500 block of Pine Street in Camden.

Williams and 15 other members of the drug-trafficking conspiracy – Ronnie Lopez, Nelson Salcedo, Carlos Perez, Paul Salcedo, Waldemar Garcia, William Carrillo, Elisa Rivera, Ramon Velez, David Velez, Naeem Sadler, Jasmin Velez, Jameel Byng, Kaliel Johnson, Meylin Troncoso, and Jose Agron – have now pleaded guilty in this case.

The charges against three other defendants remain pending, and they are presumed innocent unless and until proven guilty.

The count to which Williams pleaded guilty carries a mandatory minimum penalty of five years in prison, a maximum potential penalty of 40 years in prison, and a $5 million fine. Sentencing is scheduled for May 17, 2021.

Acting U.S. Attorney Honig credited special agents of the FBI’s South Jersey Violent Offender and Gang Task Force, South Jersey Resident Agency, under the direction of Special Agent in Charge Michael J. Driscoll; the Camden County Police Department, under the direction of Chief Gabriel Rodriguez; the Camden County Prosecutor’s Office, under the direction of Acting Prosecutor Jill S. Mayer; the Camden County Sheriff’s Department, under the direction of Sheriff Gilbert L. Wilson; the Cherry Hill Police Department, under the direction of Chief William P. Monaghan; and the N.J. State Police, under the direction of Col. Patrick J. Callahan, with the investigation leading to today’s guilty plea. He also thanked the Drug Enforcement Administration, the U.S. Marshals Service, and the Department of Homeland Security for their assistance.

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

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

NEWARK, N.J. – A Middlesex County man today admitted illegally possessing a firearm, Acting U.S. Attorney Rachael Honig announced.

Sharome Neals, 27, of Carteret, New Jersey, pleaded guilty by videoconference before U.S. District Judge Kevin McNulty to an indictment charging him with one count of being a felon in possession of a firearm.

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

On Dec. 30, 2019, Neals knowingly possessed a Glock 21 .45 caliber handgun loaded with 11 rounds of ammunition, and an additional 33 rounds of .45 caliber ammunition in his vehicle. Neals has two prior felony convictions, both involving firearms.

The charge of possession of a weapon by a convicted felon carries a maximum penalty of 10 years in prison and a fine of up to $250,000. Sentencing is scheduled for May 25, 2021.

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

Acting U.S. Attorney Honig credited special agents and task force officers of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Newark Division, under the direction of Special Agent in Charge Charlie J. Patterson; and the Secaucus Police Department, under the direction of Police Chief Dennis Miller, with the investigation leading to today’s guilty plea. She also thanked the Hudson County Prosecutor’s Office, under the direction of Prosecutor Esther Suarez, for its assistance with the investigation.

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

NEWARK, N.J. – A Jamaican man made his initial appearance today on charges that he smuggled approximately one kilogram of cocaine into the United States, Acting U.S. Attorney Rachael A. Honig announced.

Perez Omar Gibbs, 37, of Jamaica, was arrested on Jan. 9, 2021, and is charged by complaint with one count of importation of controlled substances. He appeared by videoconference today before U.S. Magistrate Judge Cathy L. Waldor and was remanded without bail.

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

Gibbs arrived at Newark Liberty International Airport aboard a flight from Montego Bay, Jamaica. Law enforcement officers discovered that Gibbs possessed approximately one kilogram of cocaine concealed inside two bags of coffee and four picture frames.

The count with which Gibbs is charged carries a mandatory minimum penalty of five years in prison, a potential maximum penalty of 40 years in prison, and a $5 million fine.

Acting U.S. Attorney Honig credited special agents of the U.S. Department of Homeland Security, Homeland Security Investigations, New Jersey Division, under the direction of Special Agent in Charge Jason J. Molina; and officers of U.S. Customs and Border Protection, under the direction of Troy Miller, director of Field Operations, New York Field Office, with the investigation leading to the charges.

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

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

CAMDEN, N.J. – A Burlington County, New Jersey, man was charged today with allegedly distributing videos and images of child sexual abuse, Acting U.S. Attorney Rachael A. Honig announced.

Al-Fahim Medina, 22, of Willingboro, New Jersey, is charged by complaint with one count of distribution of child pornography. He appeared today before U.S. Magistrate Judge Ann Marie Donio in Camden federal court and was released on $50,000 unsecured bond.

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

In January 2020, an undercover law enforcement agent saw an individual advertising, in coded language, the sale of child pornography on Twitter. The Twitter profile directed interested parties to an encrypted social media messaging application. During multiple sessions in January and February 2020, the undercover agent communicated with the individual online, and the individual agreed to sell multiple links to cloud storage websites that contained videos of child sexual abuse to the undercover agent. After the undercover agent sent $20.00 to a PayPal account registered to Medina, the individual sent the links to the websites that contained child sexual abuse. 

On June 12, 2020, law enforcement lawfully obtained multiple devices from Medina’s residence that contained over 22,000 files of content constituting child sexual abuse, including images of prepubescent children being sexually abused. 

The count of distribution of child pornography carries a mandatory minimum penalty of five years in prison, a maximum penalty of 20 years in prison, and a fine of $250,000. 

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

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

NEWARK, N.J. – A Bronx, New York man was sentenced today to 72 months in prison for supervising a large-scale wire fraud conspiracy that exposed victims to more than $2 million in losses, Acting U.S. Attorney Rachael A. Honig announced. 

Joshua Suarez, 34, previously pleaded guilty before U.S. District Judge Kevin McNulty to one count of engaging in a conspiracy to commit wire fraud. Judge McNulty imposed the sentence today by video teleconference.

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

The conspirators used multiple techniques to fraudulently convince banks and other corporate entities to send or release funds to them, including withdrawing funds by falsely claiming to be financial account holders and negotiating bogus checks. Suarez recruited and directed individuals to open bank accounts in order to launder the funds. Once the fraudulently obtained funds were deposited into the bank accounts, Suarez oversaw the withdraw and transfer of funds from those accounts. The conspiracy exposed victims to losses of more than $2,000,000.

Nine people have been charged, eight have pleaded guilty, and six have been sentenced in this case. The charges and allegations against the remaining defendant are merely accusations, and he is presumed innocent unless and until proven guilty.  

In addition to the prison term, Judge McNulty sentenced Suarez to three years of supervised release and ordered him to pay $504,164 in restitution.

Acting U.S. Attorney Honig credited special agents of the FBI’s Newark Division, under the direction of Special Agent in Charge George M. Crouch Jr., and the U.S. Department of Labor, Office of Inspector General, under the direction of Special Agent in Charge Michael C. Mikulka in New York, with the investigation leading to today’s sentencing.

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

NEWARK, N.J. – A Passaic County, New Jersey, man was sentenced today to 63 months in prison for conspiring to distribute fentanyl and distributing fentanyl, Acting U.S. Attorney Rachael A. Honig announced.

Keith Brinkley, a/k/a “K Murder,” 30, of Paterson, New Jersey, previously pleaded guilty before U.S. District Judge Brian R. Martinotti in Newark federal court to an information charging him with conspiracy to distribute and possess with the intent to fentanyl and knowingly and intentionally distributing fentanyl. Judge Martinotti imposed the sentence by videoconference today.

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

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

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

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

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

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

NEWARK, N.J. – A former Newark police officer was sentenced today to 108 months in prison for conspiring to defraud the Newark Watershed Conservation and Development Corporation (NWCDC) and giving kickbacks to its former executive director, Acting U.S. Attorney Rachael A. Honig announced.

Janell Robinson, 45, of Newark, was previously convicted of one count of conspiracy to defraud the NWCDC facilitated by use of mails and wire transmissions, two counts of mail fraud, and one count of conspiracy to commit extortion under color of official right affecting interstate commerce, following a jury trial before U.S. District Judge Susan D. Wigenton. Judge Wigenton imposed the sentence today in Newark federal court.

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

Between March 2010 and May 2013, while Robinson was a Newark police officer, she controlled Protected and Secured Services LLC (P&S), a company that purported to provide security consulting services to its only client, the NWCDC. Robinson conspired with Linda Watkins Brashear of West Orange, New Jersey, the former executive director of the NWCDC, to pay Brashear a stream of concealed and undisclosed kickbacks from the proceeds that P&S received from the NWCDC. In exchange for Brashear’s assistance with securing P&S a contract with the NWCDC and approving completely fraudulent or inflated invoices that Robinson submitted, Robinson paid Brashear cash kickbacks from the proceeds of the fraud.

The NWCDC paid P&S approximately $289,000 during the scheme, approximately $50,000 of which was used by Robinson used to pay Brashear kickbacks.   

In addition to the prison term, Judge Wigenton sentenced Robinson to three years supervised release and ordered her to pay restitution of $288,950 to the NWCDC.  

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

The government is represented by Senior Trial Counsel Leslie F. Schwartz of the U.S. Attorney’s Office Special Prosecutions Division.

NEWARK, N.J. – A California diagnostic laboratory will pay $357,584 to resolve allegations that it violated the False Claims Act by submitting or causing to be submitted claims for genetic tests to Medicare without valid physician oversight, Acting U.S. Attorney Rachael A. Honig announced today. 

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

From September 2015 to November 2015, Exceltox used the services of contractor Seth Rehfuss, of Somerset, New Jersey, who persuaded groups of senior citizens in senior housing complexes to submit to genetic testing, despite applicable Medicare rules requiring proper orders from a treating physician for such tests. Exceltox, in turn, submitted claims for payment to Medicare for Rehfuss’ genetic tests performed without valid physician oversight.

Rehfuss previously pleaded guilty in Trenton federal court to a superseding information charging him with conspiracy to commit health care fraud and was sentenced in May 2019 to 50 months in prison.

Acting U.S. Attorney Honig credited special agents of the U.S. Department of Health and Human Services – Office of the Inspector General, under the direction of Special Agent in Charge Scott J. Lampert; special agents of the U.S. Attorney’s Office for the District of New Jersey; and the Cape May County Department of Aging and Disability Services, with the investigation leading to the settlement.

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

The claims settled by this agreement are allegations only, and there has been no determination of liability.

NEWARK, N.J. – City of Newark Public Safety Director Anthony F. Ambrose was recognized today by the U.S. Attorney’s Office for the District of New Jersey for his exceptional contributions to cooperative law enforcement in the State of New Jersey, U.S. Attorney Craig Carpenito announced. 

“As I have said many times, Director Ambrose is a national treasure,” U.S. Attorney Carpenito said. “Through his leadership, we have benefited from an unprecedented level of cooperation and proactive participation in our efforts to suppress crime in the great City of Newark. Over the past five years, he has transformed the Newark Police Department under the Department of Justice’s Consent Decree and produced record levels of crime reduction in this city.”

As the leader of the City of Newark’s Department of Public Safety, Director Ambrose has fostered collaborative, productive working relationships among federal, state, and local partners, including the U.S. Attorney’s Office, the Newark Police Department, the Essex County Prosecutor’s Office, the FBI, the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the New Jersey State Police, the New Jersey Attorney General’s Office, the New Jersey Office of Homeland Security & Preparedness, and numerous other state and local agencies and police departments. The information-sharing and investigative partnerships that have resulted from these relationships has proven critical to investigating, prosecuting, and suppressing violent crime in the City of Newark and surrounding areas. 

Among other achievements during Director Ambrose’s tenure, the Newark Violent Crime Initiative (VCI) was awarded an Attorney General’s Award by then-U.S. Attorney General William P. Barr in October 2019. The Newark VCI was formed in August 2017 as a community-wide cooperative effort aimed at combatting violent crime in and around Newark. As part of this partnership, federal, state, county, and city agencies collaborate, share intelligence, and pool resources to prosecute violent offenders who endanger the safety of the community. The Newark VCI has not only improved the community, but has strengthened relationships among federal, state, county and city agencies as a result of the trust developed among the participants.

The VCI’s community-wide, collaborative approach has had a powerful impact on improving the community. Due in part to the VCI’s concentrated efforts, between 2017 and 2018, Newark saw a 30 percent reduction in the number of shooting victims city-wide. In 20l9, the number of shooting victims and shooting incidents declined another 39 percent when compared to the same time period in 2018. In that same year, the number of murders in Newark reached its lowest level in nearly six decades. And in 2020, a year in which violent crime spiked in various places across the country, including other New Jersey cities, Newark maintained the same low in the number of murders. 

Director Ambrose has also worked closely with the U.S. Attorney’s Office as part of the Department of Justice’s Project Guardian, which was announced by the Department in November 2019 and is a targeted approach to reducing gun crime. Project Guardian is based on five core principles, which include coordinated prosecution and improved information sharing.  In the fiscal year that ended Sept. 30, 2020, the U.S. Attorney’s Office charged 342 individuals with gun offenses. Of those individuals, 252 were prior convicted felons who were prohibited from possessing firearms, and almost 90 possessed firearms in furtherance of, or in relation to, drug trafficking offenses or crimes of violence, such as carjackings and shootings. Many of these cases were the result of close coordination and information sharing with Director Ambrose and the Newark Department of Public Safety.

Director Ambrose was born and raised in Newark. He received both his Bachelor of Arts and Master of Arts degrees from Farleigh Dickinson University. He is also a graduate of the FBI National Academy. In 1986, Director Ambrose joined the Newark Police Department as a police officer, rising through the ranks to become the Chief of Police in 1999 and the Police Director in 2006. Director Ambrose then served as Essex County Undersheriff from 2006 to 2008, at which point he became Chief of Detectives for the Essex County Prosecutor’s Office. In January 2016, Director Ambrose accepted Mayor Ras Baraka’s invitation to become the City of Newark’s first ever Director of Public Safety, overseeing the consolidation of police, fire, and emergency management operations. As Director, he oversees more than 1,960 employees, comprising 996 sworn police officers, 611 firefighters, and 346 civilian employees, and manages a budget that exceeds $200 million.

CAMDEN, N.J. – A Camden County, New Jersey, man today admitted conspiring to distribute and selling oxycodone pills in connection with his role in a drug trafficking ring, U.S. Attorney Craig Carpenito announced.

Anwar Abdulah, 32, of Pennsauken, pleaded guilty today by videoconference before U.S. District Judge Renée Marie Bumb to an information charging him with conspiring to distribute and possess with intent to distribute oxycodone and distributing and possessing with intent to distribute quantities of oxycodone.

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

Abdullah admitted that on multiple occasions from January 2020 to March 10, 2020, he obtained oxycodone from Erick Bell in and around Camden and resold that oxycodone. For example, Abdullah admitted that, on Feb. 21, 2020, he provided $1,440 to Bell so that Bell could purchase 120 15 mg oxycodone pills from another individual. Bell then provided Abdullah with the oxycodone pills that Bell bought using Abdullah’s money, and Abdullah resold the pills to others. Oxycodone is a Schedule II controlled substance, meaning that it has a high potential for abuse, a currently accepted medical use with severe restrictions, and abuse of the drug may lead to severe psychological or physical dependence.

Both charges carry a maximum potential punishment of 20 years in prison and a fine of $1 million, or twice the gross loss or gain caused by the offenses, whichever is greater. Sentencing is scheduled for May 10, 2021.

Nine other defendants – Bell; Rocco DePoder, 67, Marcus Rushworth, 47, and Kenneth Rushworth, 59, all of Gloucester City; Alfred Kee, Jr., 52, of Blackwood, New Jersey; Wayne Muse, 74, of Lindenwold, New Jersey; Robert Pratt, 57, of Myrtle Beach, South Carolina, formerly of Blackwood, New Jersey; and Steven Walker, 47, and Alexander Siaca, 55, both of Camden – previously pleaded guilty before Judge Bumb to informations charging them with drug trafficking offenses involving the distribution of prescription drugs. They are all awaiting sentencing.

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

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

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

NEWARK, N.J. – Kevin M. O’Dowd, the co-President/CEO of Cooper University Health Care, received the first ever Distinguished Alumnus Award from the U.S. Attorney’s Office for the District of New Jersey for his exceptional leadership during the COVID-19 pandemic, U.S. Attorney Craig Carpenito announced. 

“The COVID-19 pandemic is the greatest public health crisis this state has ever encountered,” U.S. Attorney Carpenito said. “In times of crisis, we need great leaders, and Kevin O’Dowd is precisely the kind of leader New Jersey needs right now. I was blessed to work directly with Kevin at the U.S. Attorney’s Office and watch his impressive career. Because he is now standing out as a leader in the state’s response to COVID-19, I can think of no one more deserving for our first ever Distinguished Alumnus Award.”

In March 2020, Gov. Phil Murphy appointed Mr. O’Dowd to serve as the State’s Southern Regional Coordinator for COVID-19 response. In this capacity, he serves as the New Jersey Department of Health’s lead hospital contact in connection with COVID-19 response efforts in seven counties. Mr. O’Dowd has been charged with identifying and coordinating regional bed capacity, developing strategies for allocating patients based upon critical care bed availability, developing surge plans for transporting patients as needed, setting up COVID-19 testing sites, supporting regional Field Medical Sites and collecting and communicating real-time data to the Department of Health on critical information about new cases, changes in medical models of care, bed capacity, resources, and supply of PPE. To date, the hospitals in the southern region have treated more than 40,000 COVID-positive patients. As 2021 begins, Mr. O’Dowd is also assisting the Department of Health in performing the critical mission of coordinating a vaccination plan in order to bring the virus under control. 

Before joining Cooper, Mr. O’Dowd served in the Cabinet of Gov. Chris Christie, including as Chief of Staff from 2012 to 2014. Prior to joining the Christie Administration in 2010 as counsel to the Governor, he served as the Chief of the Securities and Health Care Fraud Unit in the Criminal Division of the U.S. Attorney’s Office. During his seven-year tenure, Mr. O’Dowd investigated and prosecuted cases ranging from computer hacking and intellectual property theft to complex health care, securities, and financial fraud. He was also the Chair of the office’s Health Care Task Force. Mr. O’Dowd was twice awarded the Integrity Award from the U.S. Department of Health and Human Services and the Award for Excellence from the U.S. President’s Council on Integrity and Efficiency. In 2012, Seton Hall University School of Law presented Mr. O’Dowd with the St. Thomas More Medal for his distinguished public service.

NEWARK, N.J. – A New Jersey-based securities trader was sentenced today to 18 months in prison for orchestrating a massive, long-running market manipulation scheme and tax fraud that netted more than $17 million in illegal profits between 2014 and 2016, U.S. Attorney Craig Carpenito announced.

Joseph Taub, 41, of Clifton, New Jersey, previously pleaded guilty before U.S. District Judge John Michael Vazquez in Newark federal court to counts four and five of a superseding indictment charging him with securities fraud and conspiracy to defraud the United States. Judge Vazquez imposed the sentence by videoconference today.

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

From 2014 to 2016, Taub and others conspired to manipulate the securities prices of numerous public companies by coordinating trading in dozens of brokerage accounts he secretly controlled. Taub used “straw accounts” that were held in the names of others to conduct much of his trading. Taub funded many of these straw accounts and used the straw account holders to conceal the scheme from regulators and law enforcement.

To manipulate securities prices, Taub engaged repeatedly in a series of contemporaneous transactions designed to artificially influence the market price of the securities of various publicly traded companies, and induce other market participants to trade in those securities based on the false impression that there was real market interest in the securities, using Run Based Manipulation and Order Based Manipulation.

Run Based Manipulation is a type of securities manipulation in which a manipulator takes either a long or a short position in a security, enters orders or trades in a manner designed to inflate or deflate the price of the security while attracting others to trade the security and finally reverse their position at the inflated or deflated price. A common feature of Run Based Manipulation is that the manipulator profits directly from the manipulated market by exploiting investors who bought at inflated prices or sold at depressed prices. Order Based Manipulation is a type of securities manipulation involving orders, sometimes but not always accompanied by trades, that are intended to give other market participants a false signal about the security’s demand or supply.

Taub also admitted defrauding the United States by hiding from the brokerage firms and the IRS the identities of those who actually controlled the straw accounts and who reaped the majority of the profits from the scheme. As a result, the profits from the straw accounts were taxed at the lower tax rates applicable to the straw account holders instead of the higher tax rates applicable to Taub, which allowed Taub to avoid $394,424 in taxes.

In addition to the prison term, Judge Vazquez sentenced Taub to one year of supervised release, ordered him to forfeit $17.1 million and pay restitution of $394,424 to the IRS.

The Department of Justice has also reached a settlement of its civil forfeiture case against assets acquired by Taub and his family using proceeds of the market manipulation scheme. Under the terms of the settlement, Taub and his family members agreed to forfeit all assets subject to the pending forfeiture complaint in which they have a potential interest. Taub is also required to cooperate with and assist the Justice Department in the orderly transfer, management and disposition of the relevant assets.

U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch in Newark; special agents of IRS – Criminal Investigation, under the direction of Special Agent in Charge Michael Montanez in Newark, and special agents of the U.S. Attorney’s Office, District of New Jersey, with the investigation. He also thanked the Securities and Exchange Commission’s New York Regional Office, under the direction of Richard Best, for its assistance in this investigation.

The government is represented by Criminal Division Deputy Chief Daniel V. Shapiro; Senior Trial Counsel Catherine R. Murphy and Assistant U.S. Attorney Jennifer S. Kozar of the U.S. Attorney’s Office Criminal Division in Newark; and Sarah Devlin, Chief of the U.S. Attorney’s Office Asset Recovery and Money Laundering Unit.

NEWARK, N.J. – Two Paterson, New Jersey, men were sentenced today for their roles in a conspiracy to distribute controlled substances, U.S. Attorney Craig Carpenito announced. 

Dwayne Northern, a/k/a “Black,” a/k/a “D Black,” 35, was sentenced to 51 months in prison for conspiring to distribute heroin and distributing heroin and Isaiah Hargrove, 21, was sentenced to 40 months in prison for conspiring to distribute 40 grams or more of fentanyl and 100 grams or more of heroin, and to distributing a quantity of fentanyl and heroin.

Northern previously pleaded guilty before U.S. District Judge Brian R. Martinotti in Newark federal court to an information charging him with conspiracy to distribute and possess with the intent to distribute heroin and knowingly and intentionally distributing heroin. Hargrove previously pleaded guilty before Judge Martinotti to an information charging him with conspiracy to distribute and possess with the intent to distribute 100 grams or more of heroin and 40 grams or more of fentanyl and knowingly and intentionally distributing heroin and fentanyl. Judge Martinotti imposed the sentences by videoconference today.

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

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

In addition to the prison term, Judge Martinotti sentenced Northern to three years of supervised release and sentenced Hargrove to two years of supervised release.

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

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

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

A New Jersey man who controlled two U.S.-based companies pleaded guilty today for paying a total of $100,000 in bribes to a Korean government official in order to obtain and retain contracts with the Defense Acquisition Program Administration (DAPA), a state-owned and state-controlled agency within the Republic of Korea’s Ministry of National Defense.  

Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division, U.S. Attorney Craig Carpenito of the District of New Jersey, and Special Agent in Charge George M. Crouch Jr. of the FBI’s Newark Field Office made the announcement. 

Deck Won Kang (Kang), 50, of Englewood Cliffs, New Jersey, pleaded guilty by videoconference before U.S. District Judge Claire C. Cecchi to an information charging him with one count of violating the anti-bribery provisions of the Foreign Corrupt Practices Act (FCPA).

Kang controlled two U.S.-based companies that provided goods and services, including naval equipment and technology, to DAPA.  According to admissions made in connection with his guilty plea, from in or around January 2009 through in or around February 2013, Kang engaged in a bribery scheme in order for his companies to obtain and retain business with DAPA. 

Kang admitted that he promised to provide a high-ranking official in the Korean Navy and a procurement official for DAPA with something of value when the official left public office.  In exchange, the Korean official provided Kang with non-public information relating to the contracts in furtherance of Kang’s companies obtaining the contracts.  Kang admitted that in order to fulfill his corrupt promise to the Korean official, between in or around April 2012 and in or around February 2013, at the official’s direction following the official’s retirement from DAPA, Kang caused a series of bribe payments totaling $100,000 to be wired from a bank account controlled by Kang in the United States to a bank account in Australia for the benefit of the Korean official.

The FBI’s Newark Field office conducted the investigation.  Trial Attorney Della Sentilles of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Andrew Kogan of the District of New Jersey prosecuted the case. The Justice Department’s Office of International Affairs assisted with the case.

NEWARK, N.J. – A New Jersey man today admitted that he paid a foreign official $100,000 in bribes to secure an improper business advantage and to obtain and retain business contracts, U.S. Attorney Craig Carpenito, Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division, and Special Agent in Charge George M. Crouch Jr. of the FBI’s Newark Field Office announced.

Deck Won Kang, 50, of Englewood Cliffs, New Jersey, pleaded guilty by videoconference before U.S. District Judge Claire C. Cecchi to an information charging him with violating the anti-bribery provision of the Foreign Corrupt Practices Act.

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

From January 2009 to February 2013, Kang was a citizen of the United States, a resident of New Jersey, and an officer, director, employee, and agent of two closely held New Jersey companies. The companies obtained and retained contracts with the Defense Acquisition Program Administration (DAPA), which was a state-owned and state-controlled agency within the Republic of Korea’s Ministry of National Defense. Kang promised a high-ranking official in the Korean Navy and a procurement official for DAPA that he would provide him with something of value once he left public office. Kang made this promise to: (1) to secure an improper business advantage, specifically obtaining non-public information about the contracts; (2) aid the companies in obtaining and retaining the contracts; and (3) to induce the foreign official to use his influence with the Korean Navy and DAPA to affect and influence a decision of DAPA concerning the companies obtaining and retaining the contracts. Kang caused $100,000 to be sent to the foreign official between April 2012 and February 2013.

The charge of violating the Foreign Corrupt Practices Act is punishable by a maximum potential penalty of five years in prison and a fine of the greater of $250,000, twice the gross profits to Kang or twice the gross loss suffered by the victim. Sentencing is scheduled for April 21, 2021.

U.S. Attorney Carpenito credited special agents of the FBI’s Newark Division with the investigation leading to today’s guilty plea.

The government is represented by Assistant U.S. Attorney Andrew Kogan of the District of New Jersey and Trial Attorney Della Sentilles of the Fraud Section of the Department of Justice. U.S. Attorney Carpenito also thanked the Department of Justice Office of International Affairs for its assistance with the case.

Defense counsel: Robert Mintz Esq. and Geoffrey Rosamond Esq., Newark

TRENTON, N.J. – An Essex County, New Jersey man was sentenced today to 24 months in prison today for possession with the intent to distribute heroin, U.S. Attorney Craig Carpenito announced.

Richie Santiago, 47, of Newark, previously pleaded guilty before U.S. District Court Judge William J. Martini in Newark federal court to one count of possession with the intent to distribute heroin. Judge Martini imposed the sentence by videoconference today.

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

On at least four occasions between February 19, 2019 and March 27, 2019, Santiago sold quantities of heroin, at times laced with fentanyl, to an undercover law enforcement officer at locations in Newark and West Orange, New Jersey.

In addition to the prison term, Judge Martini sentenced Santiago to three years of supervised release.

U.S. Attorney Craig Carpenito credited special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Charlie J. Patterson, with the investigation leading to today’s sentencing.

The government is represented by Assistant U.S. Attorney Anthony P. Torntore, of the Cybercrime Unit in Newark.

Defense counsel: K. Anthony Thomas Esq., Assistant Federal Public Defender, Newark

NEWARK, N.J. – Meshach Whagar, 31, of Newark, N.J., admitted today to participating in a string of convenience store robberies that took place across New Jersey in November and December 2017, U.S. Attorney Craig Carpenito announced.

Whagar pleaded guilty by videoconference before United States District Judge Kevin McNulty to a superseding information charging him with one count of conspiracy to commit Hobbs Act robbery, nine substantive counts of Hobbs Act robbery, and one count of using a firearm during a crime of violence. Whagar’s co-defendant, Tione Davis, 38, of East Orange, N.J., previously pleaded guilty to federal charges relating to the armed robbery spree.

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

Davis and Whagar committed a string of 20 armed robberies of convenience stores and gas stations that took place throughout New Jersey between November and December 2017, including locations in Essex, Middlesex, Morris, Bergen, Union, Hudson, and Passaic Counties. During those robberies, Davis, while wearing dark clothing and hiding his face with masks or scarves, brandished a handgun and demanded money from store clerks. After stealing cash from the stores, Davis fled with Whagar, who acted as the getaway driver.

Before being apprehended, the defendants led law enforcement on a high-speed vehicle pursuit in Morris County. Among the items found in the vehicle defendants used in the chase were two handguns matching the description of those Davis used during the robberies.

The Hobbs Act charges each carry a maximum penalty of 20 years in prison. The charge of brandishing a firearm during a crime of violence carries a maximum penalty of life in prison and a mandatory minimum sentence of seven years in prison. Each count also carries a maximum fine of $250,000 or twice the gross gain or loss from the offense. Sentencing is scheduled for April 28, 2021.

U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark, with the investigation leading to today’s guilty plea. He also thanked the Morris, Union, Middlesex, Hudson, Passaic, Bergen, and Essex County Prosecutor’s Offices, as well as the Morris Plains, Springfield, Middlesex, Lodi, Roselle Park, Rahway, Parsippany, Rockaway, Mahwah, Elmwood Park, Bayonne, West Orange, East Brunswick, South River, Edison, Hoboken, Union, Clark, Kearny, Clifton, and Maplewood Police Departments for their work on this case.

The government is represented by Assistant U.S. Attorney Heather Suchorsky of the Economic Crimes Unit.

Defense counsel for Whagar: James Plaisted, Esq., Hackensack, N.J.
Defense counsel for Davis: Nabil Kassem, Esq., Clifton, N.J.

NEWARK, N.J. – Two individuals today admitted their roles in a multimillion-dollar scheme that defrauded health benefits programs through the submission of medically unnecessary prescriptions for compounded medications, U.S. Attorney Craig Carpenito announced.  

David M. Fulkerson, 48, of Indiana, and Nathaniel Stewart III, 38, of South Carolina, pleaded guilty to separate informations charging them with conspiracy to commit health care fraud. Fulkerson also admitted to his role in a conspiracy to violate the Anti-Kickback statute. Both individuals entered their guilty pleas by videoconference before U.S. District Judge Madeline Cox Arleo.

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

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

From July 2014 to November 2016, Fulkerson and Stewart conspired to defraud health care benefits programs with others, including Kent Courtheyn, a/k/a “Troy Taylor,” who has been separately charged by indictment. Courtheyn recruited Fulkerson and Stewart to market compounded medications, such as scar creams, pain creams, and vitamins, that were medically unnecessary. In order to obtain medically unnecessary prescriptions for compounded drugs, Fulkerson and Stewart, at Courtheyn’s direction, recruited individuals who had prescription drug coverage under certain health benefits programs. In Fulkerson’s case, that included TRICARE, the health care program for the United States military. The conspirators selected medications based on their high insurance reimbursement amount rather than the patients’ medical needs.  For instance, Fulkerson coached a patient on how to convince the doctor to write prescriptions for compounded medication that the patient did not need. Courtheyn, Fulkerson, Stewart, and others steered these prescriptions to certain compounding pharmacies, and in exchange, those compounding pharmacies paid Courtheyn, through his marketing company, a percentage of the reimbursement amount that they received from health benefits programs for each prescription that Fulkerson and Stewart referred. Courtheyn, in turn, paid Fulkerson and Stewart based on the compounded prescriptions that they helped generate.

Fulkerson and Stewart each face a maximum penalty of 10 years in prison on the health care fraud conspiracy charge; Fulkerson faces a maximum penalty of five years in prison on the Anti-Kickback statute conspiracy charge. They also face a $250,000 fine, or twice the gain or loss from the offense, whichever is greater, on each count. Stewart’s sentencing is scheduled for May 5, 2021.  Fulkerson’s sentencing is scheduled for April 21, 2021.

As part of his plea agreement, Fulkerson must forfeit $759,710 in criminal proceeds and pay restitution of at least $2.3 million. Stewart must forfeit $756,293 in criminal proceeds and pay restitution of at least $4 million. 

U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark, and Defense Criminal Investigative Service, under the direction of Special Agent in Charge Patrick J. Hegarty, with the investigation leading to today’s guilty pleas.

The government is represented by Assistant U.S. Attorneys José R. Almonte and Osmar J. Benvenuto of the Health Care Fraud Unit in Newark.

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

Defense counsel:

Fulkerson: Peter Carter Esq., Newark

Stewart: Henry M. Coxe III Esq., and Brian Coughlin Esq., Jacksonville, Florida

CAMDEN, N.J. – A New York man today admitted to enticing a minor and transporting the minor across state lines to engage in sexual activity, and to receiving images of child sexual abuse from another minor, U.S. Attorney Craig Carpenito announced.

Richard Gabriel Piedra Ordonez, 36, of Queens, New York, pleaded guilty by videoconference before U.S. District Judge Noel L. Hillman in Camden federal court to a three-count information charging him with one count of coercion and enticement of a minor; one count of transporting a minor to engage in criminal sexual activity; and one count of receiving child pornography.

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

In April 2019, Piedra began communicating with a New Jersey resident who was under the age of 16 using Snapchat and other social media and messaging platforms.  Piedra was aware of the minor’s age and misrepresented his own age as 19 when he was actually 35 years old.  Over the course of the subsequent months, Piedra and the victim met in person and engaged in a sexual relationship.  Piedra traveled to New Jersey to have sex with the victim and twice drove the victim to his home in New York City, where they engaged in sexual activity.

Federal law enforcement agents executing a search warrant on Piedra’s residence in December 2019 found sexually explicit images and videos of minors on a hard drive located in Piedra’s bedroom.  Further investigation revealed that, in 2017, Piedra had communicated with an Indiana resident who was under the age of 15 using various social media and messaging platforms.  Piedra was aware of the minor’s age and misrepresented his own age as 19 years old.  Piedra requested and received sexually explicit images and videos from this victim.

The count of transporting a minor carries a mandatory minimum sentence of 10 years in prison, a maximum potential penalty of life in prison, and a $250,000 fine.  The count of coercion and enticement carries a mandatory minimum sentence of 10 years in prison, a maximum potential penalty of life in prison, and a $250,000 fine.  The count of receiving child pornography carries a mandatory minimum prison sentence of 5 years, a maximum potential penalty of 20 years, and a $250,000 fine.  Piedra will be required to register as a sex offender.  Sentencing is scheduled for April 14, 2021.

U.S. Attorney Carpenito credited special agents with FBI’s Atlantic City Child Exploitation & Human Trafficking Task Force, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark, the Atlantic County Prosecutor’s Office, under the direction of Prosecutor Damon G. Tyner, and the N.J State Police, under the direction of Col. Patrick J. Callahan, with the investigation leading to today’s guilty plea.  He also thanked the Cape May County Prosecutor’s Office, under the direction of Prosecutor Jeffrey H. Sutherland, for its assistance with the investigation.

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

Defense counsel: James J. Leonard, Esq., Atlantic City, New Jersey

NEWARK, N.J. – A Union County, New Jersey, man will make his initial court appearance today on charges of using other individuals’ personal identification information to obtain unemployment insurance benefits, U.S. Attorney Craig Carpenito announced.

Maurice Mills, 28, of Union Township, New Jersey, is scheduled to appear by videoconference before U.S. Magistrate Judge James B. Clark III.

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

The federal Coronavirus Aid, Relief, and Economic Security Act (CARES Act) was signed into law on March 27, 2020. The CARES Act created a new temporary federal unemployment insurance program called Pandemic Unemployment Assistance (PUA), which provides unemployment insurance benefits for individuals who are not eligible for other types of unemployment, such as people who are self-employed, independent contractors, and gig economy workers. The CARES Act also created a new temporary federal program called the Federal Pandemic Unemployment Compensation program (FPUC) that provides an additional $600 weekly benefit to those eligible for PUA and regular unemployment insurance benefits.

A single IP address was used to submit unemployment insurance benefits claims on behalf of approximately 20 individuals to the State of New York. Many of these claims were in the names of individuals located in Texas and directed the benefits to be sent to locations in New Jersey. Mills was associated both with the IP address as well as a telephone number used to make some of the claims. Mills also was observed using an unemployment insurance benefits debit card to make a withdrawal from an ATM. To date, the claims made using the IP address have resulted in more than $400,000 in actual losses and more than $600,000 in potential losses. The charge of wire fraud is punishable by a maximum potential penalty of 20 years in prison and a fine of the greater of $250,000, twice the gross profits or loss, whichever is greater.

U.S. Attorney Carpenito credited special agents of the U.S. Department of Labor, Office of Inspector General, under the direction of Special Agent in Charge Michael C. Mikulka in New York; special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark; inspectors of the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge Raimundo Marrero in Newark; and special agents of the U.S. Secret Service, under Special Agent in Charge Mark McKevitt in Newark, with the investigation leading to the charges. U.S. Attorney Carpenito also thanked the New York State Department of Labor, Office of Special Investigations for its assistance in the investigation.

This case is being investigated as part of the Department of Justice’s COVID Fraud Task Force. To learn more about the Department’s efforts to stop illegal COVID-19-related activity, visit www.justice.gov/coronavirus. The public is urged to report suspected fraud schemes related to COVID-19 to the National Center for Disaster Fraud (NCDF) hotline by phone at (1-866-720-5721) or via an online reporting form available at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form

The government is represented by Assistant U.S. Attorney Andrew Kogan of the U.S. Attorney’s Office Cybercrime Unit in Newark and Trial Attorney Jessica Peck, Trial Attorney, of the DOJ Computer Crime and Intellectual Property Section.

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

NEWARK, N.J. – A soldier in the Lucchese Crime Family today admitted planning and carrying out an aggravated assault on the current husband of one of the former stars of the Bravo television show “The Real Housewives of New Jersey,” U.S. Attorney Craig Carpenito announced.

John Perna, 43, of Cedar Grove, New Jersey, pleaded guilty by videoconference before U.S. District Judge Kevin McNulty to Count One of the indictment pending against him, charging him with committing a violent crime in aid of racketeering activity. The indictment also charges Thomas Manzo, 55, of Franklin Lakes, New Jersey.

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

In the spring of 2015, Manzo, one of the owners of the Brownstone Restaurant in Paterson, New Jersey, and the ex-husband of the Bravo star, hired Perna to assault his ex-wife’s new boyfriend (now husband) in exchange for a deeply discounted wedding reception to be held at Manzo’s upscale Passaic County venue. Perna, who is a “made man” in the Lucchese Crime Family, planned and carried out the assault on July 18, 2015, with the help of a member of his crew. Perna was armed with a “slapjack” during the assault. In exchange for committing the assault, Perna held a lavish wedding reception at Manzo’s restaurant, just one month later, for a fraction of the price he would otherwise have paid. The reception was attended by over 330 guests, many of whom were members of the Lucchese Crime Family.

The violent crime in aid of racketeering activity count carries a maximum potential penalty of 20 years in prison and a $250,000 fine. Sentencing is scheduled for April 28, 2021.

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

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

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

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Defense counsel: Stacy Biancamano Esq., Cranford, New Jersey

NEWARK, N.J. – A Bergen County, New Jersey, man today admitted stealing health insurance reimbursement checks from a Hudson County medical practice for over four years, U.S. Attorney Craig Carpenito announced.

Nuno Fernandez, 38, of Wyckoff, New Jersey, pleaded guilty by videoconference before Senior U.S. District Judge Stanley R. Chesler to an information charging him with five counts of wire fraud.

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

Fernandez was the office manager for a medical practice in North Bergen, New Jersey, where he handled and reconciled reimbursement checks that the practice received from health care benefit programs for medical services it provided. Starting in April 2012, Fernandez began stealing some of the checks by endorsing them in his own name and depositing them into his personal bank account using an application on his mobile telephone. No one at the medical practice authorized Fernandez to deposit the checks into his personal bank account. Fernandez continued to steal checks from the practice until March 2016. In total, Fernandez stole over $840,000.

Fernandez faces a maximum potential penalty of 20 years in prison on each count and a fine of $250,000, or twice the gross gain or loss from the offense, whichever is greater. Sentencing is scheduled for April 20, 2021.

U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark, with the investigation leading to today’s guilty plea. He also thanked the Department of Labor—Office of the Inspector General and the National Insurance Crime Bureau for its assistance with the case.

The government is represented by Senior Trial Counsel Jason S. Gould of the Health Care Fraud Unit in Newark.

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Defense Counsel: Joseph Benedict Esq., New Brunswick, New Jersey

NEWARK, N.J. – A Bergen County, New Jersey, man today admitted that he defrauded lenders and corporations of $4.9 million by impersonating two bank executives interested in funding syndicated loans for global companies, U.S. Attorney Craig Carpenito announced.

Matthew O’Callaghan, 43, of Upper Saddle River, New Jersey, pleaded guilty by videoconference before U.S. District Judge Susan D. Wigenton to an indictment charging him with one count of wire fraud.

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

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

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

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

The wire fraud charge to which O’Callaghan pleaded guilty carries a maximum of 20 years in prison and a potential $250,000 fine, or twice the gross gain or loss from the offense. Sentencing is scheduled for April 28, 2021.

U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark, and inspectors of the U.S. Postal Inspection Service, Newark Division, under the direction of Acting Inspector in Charge Raimundo Marrero, with the investigation leading to today’s guilty plea.

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

Defense counsel: Ricardo Solano Jr. Esq., Newark

TRENTON, N.J. – A Burlington County, New Jersey, man today admitted illegally possessing a firearm, U.S. Attorney Craig Carpenito announced.

James Mobley, 41, of Riverside, New Jersey, pleaded guilty by videoconference before U.S. District Judge Brian R. Martinotti to an information charging him with one count of being a felon in possession of a firearm.

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

On Feb. 8, 2020, officers from the Burlington County Police Department responded to a 911 call regarding a man fitting Mobley’s description arguing with an unidentified woman.  Officers driving in marked police vehicles located Mobley, identified themselves, and instructed him not to run. Despite the officers’ verbal commands, Mobley ran and crouched behind a nearby vehicle. Officers exited their vehicles and pursued Mobley on foot. As one of the officers approached, Mobley tossed a Glock 17 firearm that was loaded with 10 rounds of 9mm caliber ammunition on to the ground. Mobley has at least five prior felony convictions, including two controlled substance offenses and two resisting arrest offenses.

The charge of possession of a weapon by a convicted felon carries a maximum penalty of 10 years in prison and a fine of up to $250,000. Sentencing is scheduled for April 14, 2021.

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

U.S. Attorney Carpenito credited special agents of the FBI, Trenton Resident Agency, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark; and special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Charlie J. Patterson, with the investigation leading to today’s guilty plea. He also thanked the Burlington Township Police Department, under the direction of Chief John Fine, and the Burlington County Prosecutor’s Office, under the direction of Prosecutor Scott A. Coffina, for their assistance.

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

NEWARK, N.J. – An Essex County, New Jersey, man today admitted his role as a member of a heroin trafficking conspiracy in Newark, U.S. Attorney Craig Carpenito announced.

Keith Herd, 32, of Newark, pleaded guilty by videoconference before U.S. District Judge Susan D. Wigenton to a third superseding indictment charging him with one count of conspiracy to distribute and possess with intent to distribute one kilogram or more of heroin and distribution of and possession with intent to distribute heroin.

Between March and August 2018, Herd and 27 other individuals were charged by complaint with conspiracy to distribute heroin and cocaine base; one individual also was charged with firearms offenses relating to his drug trafficking. On Aug. 20, 2019, a grand jury returned a 22-count third superseding indictment charging Herd and four other defendants with conspiracy to distribute one kilogram or more of heroin and various other drug and firearms offenses; Herd was charged with continuing criminal enterprise for his leadership role in the long-term drug conspiracy. The charges in the third superseding indictment remain pending against two defendants. They are presumed innocent unless and until proven guilty.

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

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

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

The heroin trafficking conspiracy count carries a mandatory minimum penalty of 10 years in prison, a maximum potential penalty of life in prison, and a $10 million fine. The drug distribution and possession with intent to distribute count carries a maximum potential penalty of 20 years in prison, and a $1 million fine. Herd’s sentencing is scheduled for April 26, 2021.

U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark, and members of the Newark Department of Public Safety, under the direction of Director Anthony F. Ambrose, with the investigation leading to today’s guilty plea. He also thanked the Essex County Prosecutor’s Office, the Essex County Sheriff’s Office, the New Jersey Department of Corrections, the New Jersey State Parole Commission, and the U.S. Marshals Service for their assistance.

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

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

CAMDEN, N.J. – A Cumberland County, New Jersey, man admitted today conspiring to illegally distribute over 1 million prescription pills and launder drug trafficking proceeds through the use of fictitious shell companies, U.S. Attorney Craig Carpenito announced.

Alton Chatmon, 50, of Bridgeton, New Jersey, pleaded guilty by videoconference before U.S. District Judge Joseph H. Rodriguez to an information charging him with one count of conspiracy to distribute controlled substances, including Tramadol, a synthetic opioid, and butabital; and one count of conspiring to commit money laundering.  

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

Chatmon is a former licensed pharmacist who operated two pharmacies in southern New Jersey until 2015. In 2015, after a DEA inspection of his pharmacies showed violations of regulations for the handling of controlled substances, Chatmon voluntarily surrendered his DEA registration, which had allowed him to process and fill prescriptions for controlled substances. In 2016, the State of New Jersey suspended Chatmon’s pharmacist license for two years.

From January 2017 until August 2018, Chatmon obtained large quantities of Tramadol pills from suppliers outside the United States by having the pills shipped to numerous U.S. Post Office boxes that he directed a conspirator to open in the names of fictitious businesses. Chatmon received customer orders from other conspirators that had been placed on internet sites or over the phone. He and his conspirators repackaged the Tramadol, a Schedule IV controlled substance, and butabital, a Schedule III controlled substance, and mailed the pills to customers to fill their orders. Chatmon admitted filling the orders for the customers of the unlicensed online pharmacy, knowing that the customers did not have valid prescriptions, that he was not a licensed pharmacist at the time, and without regard for whether the customers had any legitimate medical need for these medications. In exchange for the pills provided, the customers provided Chatmon and other conspirators with U.S. Postal money orders, which were deposited into bank accounts that Chatmon and his conspirators controlled. The bank accounts were set up using shell companies designed to disguise the source and control of the funds. Chatmon and his conspirators also sent interstate and international wire transfers totaling hundreds of thousands of dollars to their drug suppliers in both India and in other states around the United States to pay for the pills supplied to them.

Chatmon admitted that the drug conspiracy involved the illegal distribution of over 600,000 Tramadol pills and over 1 million Fioricet pills (containing butabital). He also admitted that the money laundering conspiracy involved the laundering of over $1.5 million in drug trafficking proceeds.

Chatmon faces a maximum penalty of 30 years in prison and a fine of up to $750,000. Sentencing is scheduled for April 19, 2021.

U.S. Attorney Craig Carpenito credited inspectors with the U.S. Postal Inspection Service, Philadelphia Division, under the direction of Inspector in Charge Damon E. Wood; special agents of IRS-Criminal Investigation, Newark Field Office, under the direction of Special Agent in Charge Michael Montanez; diversion investigators of the Drug Enforcement Administration, Newark Field Division, under the direction of Special Agent in Charge Susan A. Gibson; special agents of the Food and Drug Administration, Office of Criminal Investigations, Metro Washington Field Office, under the direction of Special Agent in Charge Mark S. McCormack; and special agents of the U.S. Attorney’s Office, District of New Jersey, with the investigation leading to today’s guilty plea.  

The government is represented by Assistant U.S. Attorneys Patrick C. Askin of the Camden Division.

NEWARK, N.J. –– A convicted felon was sentenced today to an additional 15 months in prison for escaping from a halfway house, U.S. Attorney Craig Carpenito announced.

Joseph Reid, 40, previously pleaded guilty before U.S. District Judge Claire C. Cecchi to an information charging him with one count of escape from federal custody. Judge Cecchi imposed the sentence today by videoconference.   

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

On Jan. 26, 2010, Reid was sentenced to 151 months’ imprisonment following his conviction for possession with intent to distribute cocaine. On Sept. 17, 2019, Reid was transferred to the custody of the Toler House Residential Reentry Center, a halfway house located in Newark.  On Dec. 31, 2019, after failing to return to the Toler House on an approved day pass, Reid was charged with escape. 

The additional 15 months in prison for which Reid was sentenced today will run consecutively to the remainder of his original sentence for drug distribution. 

U.S. Attorney Carpenito credited special agents of the U.S. Marshals Service, under the direction of Marshal Juan Mattos, with the investigation leading to today’s sentencing.

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

 

NEWARK, N.J. – The United States Attorney for the District of New Jersey, Craig Carpenito, announced his resignation today, effective at 11:59 p.m., Jan. 5, 2021. Mr. Carpenito made the following statement regarding his departure and tenure in office:

Serving as the United States Attorney has been the greatest professional honor of my lifetime. It’s a dream for any line AUSA to eventually lead the office that they love. Over the past three years, we have been through a lot – the longest shutdown in government history, a global pandemic, and two tragic acts of violent extremism that led to the loss of precious lives. Through it all, we protected the great traditions of this office, the Department of Justice and the state that we all love and serve. For that, I am forever grateful.

I would also like to thank Attorney General Jefferson B. Sessions for appointing me United States Attorney in January 2018 and the United States District Court for the District of New Jersey for voting me into my position in April 2018. Being chosen by this Court to be the United States Attorney has been particularly gratifying.” 

Over the past three years, I have been blessed to work alongside a tremendous front office and an incredible group of Assistant U.S. Attorneys. The following are only a few highlights among all that we have accomplished.

Organizational Changes

We made significant organizational changes to the Criminal and Civil Divisions, beginning upon my arrival in 2018, when I re-established the Violent Crimes Unit and created the Cybercrimes and Opioids Units. Opioids was the first standalone opioids enforcement unit in the United States, and the second unit in our Criminal Division to include both criminal and civil AUSAs. As a member of the Attorney General’s Advisory Subcommittees on both Health Care and Cybercrimes, we were thought leaders in both areas and brought some of the most significant cases in the country over the past three years.

I created a third such unit at the end of 2019: The Government Fraud Unit. Keeping AUSAs conducting parallel investigations under one roof has improved communication between the two groups and increased the speed with which such cases can be brought. 

Staffing

We increased the number of criminal cases we prosecuted, and civil cases we brought and defended, by aggressively hiring new AUSAs and SAUSAs. Throughout all of our offices – Newark, Camden, and Trenton – staffing is at record levels. When I took office on Jan. 5, 2018, we had only 130 AUSAs on board even though we had a total of 147 AUSA slots. Today, we have 155 AUSA slots, all of which have been filled, and 10 SAUSAs - a 27 percent increase in our headcount. We hired and filled our 17 vacant AUSA slots by improving the management of our budget, and we increased our headcount by applying to Washington for increased funding to hire eight additional AUSAs for specific slots (immigration, affirmative civil enforcement in health care, violent crime, and unemployment insurance benefit fraud). We also asked for, and received, Special Assistant U.S. Attorneys from other federal agencies, including the Securities & Exchange Commission, the Environmental Protection Agency, the Department of Labor, the United States Trustee, and the United States Postal Inspection Service, and from the State of New Jersey and many of our county prosecutors’ offices. We have hired a diverse group of 74 AUSAs from different bakcgrounds and experiences. Our office is as strong as it has ever been.

Increased Productivity

The federal government’s fiscal year runs from October 1 to September 30. In fiscal year 2017, the last full year before I rejoined the Office, the Office brought 870 criminal cases. In 2018, that number went up to 1,217, an increase of nearly 40 percent. In 2019, the number increased again by nearly 10 percent, to 1,333 criminal cases. And in fiscal year 2020, a full half of which occurred during the COVID-19 pandemic and all of the challenges that posed and continues to pose to law enforcement, the number increased yet again by over 15 percent, to a total of 1,535 criminal cases. As an Office, we have been working smarter and we have been working harder. These numbers reflect that. 

Violent Crime

One of my earliest priorities was tackling the violent crime problem in New Jersey, particularly in its largest cities. We moved immediately to strengthen our relationships with our state and local partners and to dedicate additional resources to investigating and prosecuting violent crime. The results were gratifying. For example, between 2017 and 2018, Newark saw a 30 percent reduction in the number of shooting victims city-wide. In 20l9, the number of shooting victims and shooting incidents declined another 39 percent when compared to the same time period in 2018. In that same year, the number of murders in Newark reached its lowest level in nearly six decades.

The overall trends statewide were similar. The number of shooting victims in New Jersey declined from 1,353 in 2017 to 1,050 in 2018 and 1,000 in 2019, a decrease of 26 percent over that period. Of those, the number of murder victims declined from 233 in 2017 to 187 in 2018 to 158 in 2019, an even greater decrease of 32 percent over that period. These significant gains would not have been possible without the robust federal/state/local partnership led by this Office.

During my tenure, we expanded our Violent Crime Initiatives from Newark to Jersey City, Paterson, Trenton, and Camden. We dedicated more AUSAs to each of the VCIs, and we developed long-term relationships with our law enforcement partners to ensure that the VCIs would be successful. The Attorney General recognized our VCI work with AG Awards in two consecutive years, first in 2019 to the Newark VCI for cooperative law enforcement, and next in 2020 to Deputy Chief of the Criminal Division Mary Toscano, our Newark VCI coordinator, for excellence in management.

The violent crime numbers were continuing to decrease in 2020 when the pandemic hit.  Since that occurred in mid-March, violent crime numbers have risen in many of our major cities.  Thankfully, our numbers in New Jersey have remained better than other major cities in the United States. It is my sincere hope that by maintaining our focus on investigating and prosecuting violent crime at the federal level, we can start pushing those numbers in the right direction again in 2021.

Task Forces

In 2020, the Attorney General appointed me to lead two nationwide task forces. On March 24, 2020, the Attorney General created the COVID-19 Hoarding and Price Gouging Task Force. Our office, under the leadership of Deputy Chief of the Criminal Division Nicholas Grippo, AUSA David Simunovich, and Chief of the Appeals Division Mark Coyne, led the charge to investigate and prosecute the illicit hoarding and price gouging of critical COVID-19 personal protective equipment. With the help of our partners in the Antitrust Division, and with resources from U.S. Attorney’s Offices around the country, we created a mechanism by which to quickly intake hundreds upon hundreds of price-gouging complaints, assign those investigations to AUSAs around the country, and quickly and efficiently bring, when appropriate, criminal charges. 

On June 26, 2020, the Attorney General appointed me, along with the U.S. Attorney for the Northern District of Texas, to lead the Task Force on Violent Anti-Government Extremists.  Our office, under the leadership of AUSA Dean Sovolos, stood up this task force. We appointed task force coordinators in specific regions of the country to launch and coordinate investigations, with the FBI and local U.S. Attorney’s Offices, into violent extremists such as the Boogaloo and other white supremacist groups.

Civil Rights Enforcement

We increased our prosecution of criminal and civil cases involving civil rights, dedicated more resources to this important work, and were recognized by EOUSA for our excellence in this field. On the civil side, we increased the size of our civil unit by 50 percent. And, we were awarded in 2019 with a Director’s Award, to Michael Campion, Chief of the Civil Rights Unit in the Civil Division, and AUSA Kelly Horan Florio, for Superior Performance by Civil AUSAs, based upon their record of excellence in civil rights work. On the criminal side, I appointed Joseph Gribko as our first Senior Civil Rights Counsel. Throughout our offices, we charged a number of important criminal civil rights against law enforcement officers across the state. And, in 2020, we were recognized for this work as well, with a Director’s Award, to Executive Assistant U.S. Attorney Rahul Agarwal, for the successful civil rights prosecutions of several Paterson police officers.

eLitigation

Another of my earliest priorities was the advancement of our eLitigation capabilities. I recognized during my time in private practice that the government had fallen far behind the pace of the private sector when it came to efficiently receiving, processing, and using electronic evidence. At my request, our Office became one of the first USAOs to participate in an EOUSA pilot program designed to revolutionize and modernize our eLitigation program. This program was such a success that members of our office and EOUSA won a Director’s Award for it in 2020, and led to Daniel Shapiro, Deputy Chief of the Criminal Division, being named as one of the co-chairs of the nationwide eLitigation initiative that followed and seeks to replicate our success. 

Medicare Strike Force

When I rejoined the Office in 2018, the District of New Jersey was the only federal judicial district that appeared on the top 10 list of healthcare fraud hotspots maintained by the Fraud Section of the Department of Justice, but lacked a DOJ Medicare Strike Force. I acted quickly to change that, and in August 2018, then-head of the Criminal Division Brian Benczkowski and I announced the formation of a Medicare Strike Force in New Jersey. Since that time, the Strike Force has doubled in size, and now comprises four DOJ Trial Attorneys and a Chief. The Strike Force attorneys have worked cases both separately and in tandem with our Healthcare Fraud and Opioids AUSAs on healthcare fraud enforcement matters across the state.

With the DOJ Medicare Strike Force, there are now 170 federal prosecutors resident in the District of New Jersey.

*          *          *

Upon United States Attorney Carpenito’s departure, First Assistant U.S. Attorney, Rachael A. Honig, will serve as Acting U.S. Attorney under the Vacancies Reform Act until a replacement is named.

Ms. Honig first joined the United States Attorney’s Office as an Assistant U.S. Attorney in 2003.  She has served in various supervisory roles in the office, including Deputy Chief of the Criminal Division and Counsel to U.S. Attorney Paul Fishman, before departing for a legal position in the private sector. Upon returning to the office as United States Attorney, Carpenito appointed Ms. Honig his First Assistant U.S. Attorney. She is only the second woman to serve as the First Assistant and the first since 1983. Now, Ms. Honig will be the second woman in the 232-year history of this office to be its chief federal law enforcement officer. 

“Throughout my tenure, Rachael has been my partner and principal advisor on everything that I do,” Carpenito said.  “I am extremely proud and honored that she will be the Acting U.S. Attorney when I leave. The office and its legacy could not be in better hands.”

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NEWARK, N.J. – A Sussex County, New Jersey, man will make his initial court appearance today on charges of fraudulently obtaining a federal Paycheck Protection Program (PPP) loan of over $5 million, U.S. Attorney Craig Carpenito announced.

Azhar Sarwar Rana, 30, of Newton, New Jersey, is charged by complaint with one count of bank fraud and one count of money laundering. Rana was arrested Dec. 12, 2020, after he booked a same-day flight to Pakistan; he made his initial appearance by videoconference today before U.S. Magistrate Judge James B. Clark III and was detained without bail.

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

Rana submitted a fraudulent PPP loan application to a lender on behalf of a corporate entity, Azhar Sarwar Rana LLC, that purportedly invested in real estate development. The application falsified payroll and tax information and included internally inconsistent listings of the number of company employees. New Jersey Department of Labor records showed that Azhar Sarwar Rana LLC paid no wages in 2019, and the minimal wages it purportedly paid in 2020 were mostly to individuals whose submitted Social Security numbers did not correspond to their submitted names. 

Based on Rana’s alleged misrepresentations, the lender approved Rana’s PPP loan application and provided Azhar Sarwar Rana LLC with an approximately $5.6 million in federal COVID-19 emergency relief funds meant for distressed small businesses.

Rana used the fraudulently obtained PPP loan proceeds to pay for numerous personal expenses, including to invest millions in the stock market, make a payment to a luxury car dealership, and send hundreds of thousands of dollars to accounts in Pakistan. 

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

The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of 1 percent. Businesses must use PPP loan proceeds for payroll costs, interest on mortgages, rent and utilities. The PPP allows the interest and principal to be forgiven if businesses spend the proceeds on these expenses within a set time period and use at least a certain percentage of the loan towards payroll expenses.

U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark; special agents of IRS – Criminal Investigation, under the direction of Special Agent in Charge Michael Montanez; special agents of the Social Security Administration – Office of the Inspector General, under the direction of Special Agent in Charge John F. Grasso; and special agents of the U.S. Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Jason J. Molina in Newark, with the investigation leading to the charges.

The count of bank fraud carries a maximum potential penalty of 30 years year in prison and a $1 million fine, or twice the gross gain to the defendant or gross loss to the victim, whichever is greater; the count of money laundering carries a maximum potential penalty of 10 years in prison and a $250,000 fine, or twice the gross gain to the defendant or gross loss to the victim, whichever is greater.

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

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

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

NEWARK, N.J. – A Passaic County, New Jersey, man was indicted by a grand jury today for his role in a conspiracy to distributed illegal drugs in Paterson, U.S. Attorney Craig Carpenito announced.

Dashion Kelson, 40, a/k/a “Tank,” a/k/a “Izzy,” a/k/a “Stizzy, of Paterson, New Jersey, was indicted on charges of conspiring to distribute and possess with the intent to distribute 100 grams or more of heroin, and 40 grams or more of fentanyl, five counts of distribution of controlled substances, and two counts of possession with the intent to distribute heroin. Kelson and 16 other members and associates of the 230 Boys were charged by complaint in October 2019.

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

Kelson and his conspirators are members and associates of the 230 Boys street gang, which operates primarily in and around Rosa Parks Boulevard and Godwin Avenue in Paterson. Through investigative techniques, including numerous controlled purchases of narcotics, consensually recorded telephone calls and text messages, physical surveillance, and the analysis of telephone call detail records, law enforcement determined that from September 2018 through Oct. 3, 2019, Kelson and others conspired to distribute narcotics, to include heroin and fentanyl.  On six occasions, he distributed controlled substances, to include heroin and fentanyl. On Oct. 3, 2019, Kelson possessed with the intent to distribute two separate quantities of heroin.

Six co-defendants have since pleaded guilty before U.S. District Judge Brian R. Martinotti: Keith Brinkley, 30; Isaiah Hargrove, 21; Tyson Jacobs, 21; Amir Jones, 21; Dwayne Northern, 35; and Cequan Wharton, 30, all of Paterson. Six other co-defendants have been charged by a second superseding indictment: Wyzier Peterson, 23; Carl Brown, 26; Aaryn Abrams, 24; Najier Boone, 24; Zikeme Brooks, 27; and Jimir Ricks, 26.

Counts 1 and 8 of today’s indictment carry a mandatory minimum sentence of five years in prison, a maximum penalty of 40 years in prison, and a mandatory fine of $5 million. Counts 2 through 7 and 9 carry a maximum penalty of 20 years in prison, and a maximum fine of $1 million. 

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

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

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

The charges and allegations against Kelson and the remaining co-defendants in the complaint and second superseding indictment are merely accusations, and they are presumed innocent unless and until proven guilty.

TRENTON, N.J. – A Monmouth County, New Jersey, man was sentenced today to 13 months in prison for participating in a conspiracy to defraud health insurance companies through a multi-state patient brokering scheme in which he bribed drug-addicted individuals to enroll in drug rehabilitation in exchange for referral fees from the rehabilitation centers, U.S. Attorney Craig Carpenito announced.

Peter J. Costas, 27, of Red Bank, New Jersey, previously pleaded guilty by teleconference before U.S. District Judge Peter G. Sheridan to an information charging him with one count of conspiracy to commit health care fraud. Judge Sheridan imposed the sentence by videoconference today.

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

Costas helped orchestrate a scheme in New Jersey, California, and other states that involved bribing individuals addicted to heroin and other drugs to enter into drug rehabilitation centers so Costas and his conspirators could generate referral fees from those facilities.

Costas worked with several marketing companies to carry out the scheme, but one marketing company in California run by Costas’s conspirators was pivotal. The marketing company maintained contractual relationships with drug treatment facilities around the country. Costas was engaged by the marketing company to recruit potential patients, who were addicted to heroin or other drugs and who had robust private health insurance, from New Jersey and other states. 

To convince drug-addicted individuals to travel to and enroll in rehabilitation when they otherwise would not have, Costas offered to bribe them – often as much as several thousand dollars. Once they agreed to enroll in drug rehabilitation in exchange for the offered bribe, Costas and the owners of the marketing company would arrange and pay for cross-country travel to the drug treatment centers in California and other states. Costas would stay in touch with the New Jersey patients at the facilities and specifically instruct them to stay at the facilities long enough to generate referral payments.

Costas and the marketing company often directed patients to different rehabilitation facilities month after month to generate multiple referral payments without regard to whether the substance abuse treatment was medically necessary or effective. In a conversation over Facebook, one patient told Costas that if Costas made good on his promise to pay the patient a bribe, the patient would enroll in additional facilities to trigger additional referral payments and bribes: “[J]ust get us [sic] grab the dough and put us in another place. . . . Get paid some more feel me. . . . I’ll keep this up all year wit[h] you. As long as you do us right.” When the patient later expressed doubt that Costas would pay the bribe, Costas responded, “Don’t worry. . . .  I do this with SO MANY PPL [people].”

Costas and the marketing company sent patients to facilities in California and other states that they knew provided ineffective drug treatment or actually fostered drug use on their premises. The facilities typically paid the marketing company a fee of $5,000 to $10,000 per patient referral, and Costas and other brokers received approximately half that amount for each patient they brokered. During the scheme, Costas brokered dozens of patients on behalf of marketing companies around the country, and the conspiracy caused millions of dollars of losses for health insurers.

In addition to the prison term, Judge Sheridan sentenced Costas to three years of supervised release and ordered him to pay restitution of $502,208.

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

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

NEWARK, N.J. – A Cumberland County, New Jersey, man pleaded guilty to conspiracy to distribute 500 grams or more of cocaine and possession with intent to distribute 400 grams or more of fentanyl, U.S. Attorney Craig Carpenito announced.

Oscar J. Gonzalez, 37, of Vineland, New Jersey, pleaded guilty before U.S. District Judge John Michael Vazquez to one count of conspiracy to distribute and possess with the intent to distribute 500 grams or more of cocaine and possession with intent to distribute 400 grams or more of fentanyl.

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

From Jan. 20, 2020, through Jan. 26, 2020, Gonzalez conspired with others to distribute kilograms of cocaine. On Jan. 25, 2020, he agreed to purchase kilograms of cocaine and, pursuant to that agreement, traveled to a location in Union County, New Jersey, to obtain the cocaine. He brought with him approximately $24,000 in cash, in order to pay for one kilogram of cocaine. Once at that location, he was arrested and charged with conspiracy to distribute 500 grams or more of cocaine. 

While on release in connection with that case, Gonzalez agreed to distribute five kilograms of fentanyl. On April 24, 2020, Gonzalez arranged for another individual to deliver the fentanyl to a location in Monmouth County, New Jersey. Law enforcement officers seized the fentanyl from Gonzalez’ conspirator, and Gonzalez was arrested.

The count of conspiracy to distribute and possess with the intent to distribute 500 grams or more of cocaine carries a mandatory minimum sentence of five years in prison, a maximum sentence of 40 years in prison, and a fine of up to $5 million. The count of possession with intent to distribute 400 grams or more of fentanyl carries a mandatory minimum sentence of 10 years in prison, a maximum sentence of life imprisonment, and a fine of up to $10 million. Sentencing is scheduled for April 21, 2021.

U.S. Attorney Craig Carpenito credited special agents of the Drug Enforcement Administration, under the direction of Special Agent Susan A. Gibson in Newark, with the investigation leading to today’s guilty plea. 

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

CAMDEN, N.J. – A Camden man today admitted conspiring to distribute and selling high-dose oxycodone pills in connection with his role in a drug trafficking ring, U.S. Attorney Craig Carpenito announced.

Erick Bell, 48, pleaded guilty today by videoconference before U.S. District Judge Renée Marie Bumb to an information charging him with conspiring to distribute and possess with intent to distribute oxycodone and distributing and possessing with intent to distribute quantities of oxycodone.

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

Bell admitted that on multiple occasions from January 2020 to March 2020, he worked with Rocco DePoder, 67, of Gloucester City, New Jersey, Alfred Kee Jr., 52, of Blackwood, New Jersey, and others to sell oxycodone in and around Camden and Gloucester City. For example, Bell admitted that on Feb. 3, 2020, he obtained 160 80 mg. oxycodone pills from Kee, and sold DePoder 60 of the pills for $25 each and 100 of the pills to Maurice Williams for $24 each. Oxycodone is a Schedule II controlled substance – meaning that it has a high potential for abuse, a currently accepted medical use with severe restrictions, and abuse of the drug may lead to severe psychological or physical dependence.

Both charges carry a maximum penalty of 20 years in prison and a fine of $1 million, or twice the gross loss or gain caused by the offenses, whichever is greater. Sentencing is scheduled for April 12, 2021.

Eight other defendants – DePoder; Kee; Marcus Rushworth, 47, and Kenneth Rushworth, 59, both of Gloucester City; Wayne Muse, 74, of Lindenwold, New Jersey; Robert Pratt, 57, of Myrtle Beach, South Carolina, formerly of Blackwood, New Jersey; Steven Walker, 47, and Alexander Siaca, 55, both of Camden – previously pleaded guilty before Judge Bumb to informations charging them with drug trafficking offenses involving the distribution of prescription drugs. They are awaiting sentencing.

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

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

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

CAMDEN, N.J.  – A Burlington County resident and a former Camden County resident are among three men charged with conspiring to defraud at least 43 victims out of more than $3 million through the sale of phony business opportunities, U.S. Attorney Craig Carpenito announced.

David Weinstein 61, formerly of Cherry Hill, New Jersey, and now of Dallas, Texas; Vijay Vanam Reddy 45, of Milan, Michigan, and Kevin Brown, 61, of Burlington, New Jersey, are each charged by complaint with one count of conspiracy to commit wire fraud. Reddy was arrested today and is scheduled to appear in Detroit, Michigan, federal court this afternoon. Brown and Weinstein were arrested on Dec. 8, 2020. Brown appeared before U.S. Magistrate Judge Ann Marie Donio in Camden federal court via videoconference on Dec. 8, 2020, and was released on $50,000 bond. Weinstein appeared before U.S. Magistrate Judge Rebecca Rutherford in Dallas federal court on Dec. 9, 2020 and was released. 

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

From September 2015 through August 2018, the conspirators advertised business opportunities for sale on various websites. They purported to sell “blocks” of contracts with medical providers who allegedly wanted to outsource their medical billing, collections, appeals, answering, credentialing, or transcription functions. The buyers would then provide the contracted services to the medical providers and earn a profit. The conspirators promised to deliver a specified number of providers and pledged that their proprietary marketing efforts would provide a guaranteed client base to the buyers.

To induce buyers to purchase the business opportunities, the conspirators created fake references purporting to be buyers who vouched for their prior business purchases from the conspirators. In fact, the references were Reddy’s family member and Weinstein, using aliases to speak with potential buyers.

After agreeing to purchase the blocks of medical providers, victims entered contracts with companies represented by Weinstein or Reddy and wired down payments ranging from $15,000 to $255,000 to accounts controlled by Weinstein or Brown. The remainder of each purchase price was payable when the conspirators fulfilled the contract by delivering the agreed-upon number of providers.

After receiving the down payments, Weinstein and Reddy delivered to each victim only a small number of medical providers. Despite not fulfilling the contracts of any of the buyers identified by law enforcement, the conspirators continued to sell blocks of medical providers to new buyers and refused to provide refunds for their failures to satisfy the terms of the contracts.  The conspirators also periodically sold batches of previously signed contracts and disclaimed further responsibility for those contracts to insulate themselves from complaints or legal action from disgruntled buyers.

Brown acted as the business broker for most of the transactions and received a commission for the sales he brokered. Weinstein or Reddy acted as the seller and signed the contracts with the victims.

At least 43 victims sent more than $3 million to accounts controlled by the conspirators.  Law enforcement agents have tentatively identified an additional 21 victims who collectively paid an additional $1.1 million to the conspirators. The defendants spent the victims’ money on personal expenses and transferred money to other bank accounts controlled by them or their family members.

The count of conspiracy to commit wire fraud is punishable by a maximum of 20 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense.

U.S. Attorney Carpenito credited special agents of the FBI’s South Jersey Resident Agency, under the direction of Special Agent in Charge Michael J. Driscoll in Philadelphia; special agents of IRS - Criminal Investigation, under the direction of Special Agent in Charge Michael Montanez in Newark; and postal inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge Damon Wood in Philadelphia, with the investigation leading to the charges.

Additional victims of the offense may reach out to the FBI at 1-800-CALL-FBI (225-5324) or visit www.fbi.gov.

The government is represented by Assistant U.S. Attorneys Daniel A. Friedman and Diana V. Carrig of the U.S. Attorney’s Office in Camden.

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

TRENTON, N.J. – A Monmouth County, New Jersey, man made his initial appearance today after being charged with illegally possessing a handgun, U.S. Attorney Craig Carpenito announced.

Lashawn Alford, 27, of Asbury Park, New Jersey, is charged by complaint with one count of possession of a firearm by a convicted felon. He appeared by videoconference before U.S. Magistrate Judge Douglas E. Arpert and was detained pending a bail hearing.

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

On July 20, 2020, Monmouth County Prosecutor’s Office Detectives and Neptune City Police Officers responded to an apartment complex in Neptune City to conduct surveillance of suspected gang activity. Law enforcement officers observed Alford, a previously convicted felon, exit an apartment and get into the back of a car that drove out of the complex. Law enforcement knew Alford to be a member of the Queen Street II Bloods street gang and determined that Alford had an outstanding warrant for his arrest in Asbury Park. Law enforcement stopped the car and arrested Alford. A loaded Smith and Wesson, model M&P Compact, .22 caliber pistol was located on the floor of the car where Alford had been sitting.

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

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

U.S. Attorney Carpenito credited special agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Trenton Field Office, under the direction of Special Agent in Charge Charlie J. Patterson in Newark; officers of the Neptune City Police Department, under the direction of Police Director Matthew Quagliato; and detectives of the Monmouth County Prosecutor’s Office, under the direction of Prosecutor Christopher J. Gramiccioni, with the investigation leading to today’s charges.

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

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

NEWARK, N.J. – A former sales representative today admitted his role in a scheme to defraud a New Jersey state health benefits program, U.S. Attorney Craig Carpenito announced. 

Thomas Bowers, 46, of Little Falls, New Jersey, pleaded guilty by videoconference before U.S. District Judge William J. Martini to an information charging him with conspiracy to commit health care fraud.

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

Compounding is a practice in which a pharmacist or physician combines, mixes, or alters ingredients of a drug to create a medication tailored to the needs of an individual patient. The Food and Drug Administration does not approve compounded drugs and thus does not verify the safety, potency, effectiveness, or manufacturing quality of compounded drugs. Generally, a physician may prescribe compounded drugs when an FDA-approved drug does not meet the health needs of a particular patient.

Between December 2014 and March 2016, Bowers worked as a sales representative for a marketing company that marketed and sold compounded drugs to physicians, including pain, scar and wound creams and certain supplements and vitamins. Certain compounding pharmacies paid the marketing company based on a percentage of the reimbursement payments they received from health care benefit programs for each prescription that Bowers referred to the pharmacies. The marketing company, in turn, paid Bowers based on the compounded prescriptions he generated. Bowers recruited patients, including family members, who had prescription drug coverage under the New Jersey School Employee’s Health Benefits Program, to obtain medically unnecessary prescriptions for compounded drugs. Bowers paid patients that he recruited to obtain prescriptions from doctors even though the doctors did not have any interaction with the patients for purposes of determining that a prescription was medically necessary. He obtained medically unnecessary prescriptions from doctors who only conducted a cursory patient examination that was insufficient to legitimately deem that a compounded drug was medically necessary for the patient.

The count of conspiracy to commit health care fraud carries a maximum penalty of 10 years in prison and a $250,000 fine, or twice the gain or loss from the offense, whichever is greater. As part of his plea agreement, Bowers must forfeit $157,747 in criminal proceeds and pay restitution of at least $593,678. Sentencing is scheduled for April 8, 2021.

U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark, and Defense Criminal Investigative Service, under the direction of Special Agent in Charge Patrick J. Hegarty, with the investigation leading to today’s plea.

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

NEWARK, N.J. – An Essex County, New Jersey, man today admitted possessing a handgun in furtherance of a drug trafficking crime, U.S. Attorney Craig Carpenito announced today.

Ricky Terrell, 24, of Newark, pleaded guilty by videoconference before U.S. District Court Judge John Michael Vazquez to an information charging him with one count of possession of a firearm in furtherance of a drug trafficking crime, specifically, the possession with intent to distribute heroin and cocaine.

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

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

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

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

The possession of a firearm in furtherance of a drug trafficking crime carries a statutory mandatory minimum term of five years in prison, a maximum of life in prison, and a maximum fine of $250,000.  Sentencing is scheduled for April 21, 2021.

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

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

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

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

TRENTON, N.J. – A New York doctor today admitted distributing opioids without a legitimate medical reason and soliciting sexual favors from patients in exchange for opioid prescriptions, U.S. Attorney Craig Carpenito announced.

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

“This defendant knowingly prescribed for his patients dangerous quantities of oxycodone, and even more egregiously, solicited sexual favors from certain patients who were struggling with substance abuse in exchange for writing them additional opioid prescriptions,” U.S. Attorney Carpenito said. “Many of these patients were dealing with pain and addiction, and instead of getting help from their doctor, they were drawn deeper into the cycle of drug abuse. His admission of guilt today ensures that he will be appropriately punished for this behavior.”

“This defendant not only violated his oath to help people, he took advantage of them when they were most vulnerable for his own selfish needs,” Susan A. Gibson, Special Agent in Charge of the Drug Enforcement Administration’s New Jersey Division, said. “The only difference between him and a person who deals drugs on the street is the white lab coat he wears. The men and women of the DEA are always committed to pursue those who choose to violate the law.”

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

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

The count of conspiracy to distribute oxycodone carries a maximum penalty of 20 years in prison and a $1 million fine. Sentencing is scheduled for April 12, 2021.

U.S. Attorney Carpenito credited special agents, diversion investigators and task force officers of the DEA, under the direction of Special Agent in Charge Gibson in Newark, with the investigation leading to today’s guilty plea.

The government is represented by Assistant U.S. Attorneys Adam Baker and Chief of the Opioids Unit Melissa Wangenheim in Newark.

NEWARK, N.J. – Five people have been charged for their participation in a scheme to engage in bank fraud, U.S. Attorney Craig Carpenito announced today.

Jose Lopez Blanco, 22; Jesus Emilio Ruiz Ramirez, 21; Cori Mojica Caminero, 25; Marisol Gomez, 34; and Daury DeLeon, 24, all of the Bronx, New York, are each charged by superseding complaint with one count of bank fraud conspiracy. Blanco was additionally charged with one count of mail theft and one count of unlawful possession of a postal key.    

Blanco and two other individuals were charged in December 2019 with one count of conspiracy to commit mail theft and one count of conspiracy to commit unlawful possession of a postal key. According to that complaint, Blanco had been observed by law enforcement officers using a U.S. Postal Service (USPS) arrow key (a special master key maintained by USPS employees) to gain unauthorized access to, and steal mail from, a USPS mail collection box in Newark. Blanco remains on pretrial release on those charges and will make his initial court appearance by video conference later this week.

Ruiz Ramirez, Caminero, and Gomez were arrested today and are scheduled to appear by videoconference before the U.S. Magistrate Judge Leda Dunn Wettre this afternoon. DeLeon remains at large.

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

From October 2018 through December 2019, postal inspectors investigated a group of individuals for stealing checks and money orders from the mail; altering those financial instruments; depositing them into bank accounts; and withdrawing the proceeds before the victims discovered the fraud.    

The investigation revealed that following various thefts from mail collections boxes, the defendants and others deposited various stolen and altered checks and money orders into accounts that they controlled, as well as accounts controlled by other conspirators. The defendants and conspirators withdrew the stolen proceeds shortly thereafter. 

As a result, the defendants and conspirators deposited more than $250,000 worth of stolen financial instruments into certain bank accounts, some of which were opened solely for the purposes of receiving and depositing the stolen financial instruments. The defendants and their conspirators were captured on bank video surveillance footage, on at least 50 occasions engaging in fraudulent transactions in these accounts.

The count of mail theft carries a maximum sentence of five years in prison and a fine of $250,000, or twice the pecuniary gain to the defendant or loss to the victim, whichever is greater.  The count of unlawful possession of a postal key carries a maximum sentence of 10 years in prison and a fine of $250,000, or twice the pecuniary gain to the defendant or loss to the victim, whichever is greater. The count of conspiracy to commit bank fraud carries a maximum sentence of 30 years in prison and a fine of $1 million.

U.S. Attorney Carpenito credited inspectors of the U.S. Postal Inspection Service, Newark Division, under the direction of Acting Inspector in Charge Raimundo Marrero; special agents of the U.S. Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Jason J. Molina in Newark; the Jersey City Police Department, under the direction of Public Safety Director James Shea; the New York City Department of Investigation - Office of the Inspector General, the New York City Housing Authority, under the direction of New York City Department of Investigation Commissioner Margaret Garnett; New York City Police Department, under the direction of Commissioner Dermot Shea; the Newark Police Department, under the direction of Public Safety Director Anthony Ambrose; and the Roselle Park, New Jersey Police Department, under the direction of Chief of Police Daniel J. McCaffery, with the investigation leading to the charges.

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

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

NEWARK, N.J. – An Essex County, New Jersey, man was charged in connection with possessing several firearms, including an AM-15 rifle, as well as quantities of crack cocaine and heroin with the intent to distribute, U.S. Attorney Craig Carpenito announced today.

Cedric Lewis, 30, of Bloomfield, New Jersey, is charged by complaint with two counts of possession of a firearm by a convicted felon, two counts of possession with intent to distribute controlled substances and one count of possession of firearms in furtherance of a drug trafficking crime. He was arrested in Atlanta, Georgia, on Dec. 4, 2020, and was detained following an initial appearance in the U.S. District Court for the Northern District of Georgia.

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

Law enforcement officials learned about Lewis’ involvement in an incident on Sept. 20, 2020, where Lewis was in a car in Elizabeth, New Jersey, while he possessed 118 jugs containing suspected crack cocaine, as well as an AM-15 rifle with a high-capacity magazine that contained thirty rounds of .300 caliber ammunition. On Sept. 25, 2020, law enforcement lawfully searched Lewis’ apartment and recovered the following: one 9 millimeter pistol with an extended magazine; one .40 caliber pistol with an extended magazine; drug paraphernalia and a scale; $800 in United States currency; one clear plastic bag containing a distribution quantity of suspected crack cocaine; several bundles of distribution quantities of suspected heroin; and 9 suspected Xanax pills. 

The narcotics offenses each carry a maximum potential penalty of 20 years in prison, and a fine of $1 million. The counts of being a felon in possession of a firearm each carry a maximum potential penalty of 10 years in prison. The count of possession of firearms in furtherance of a drug trafficking crime carries a statutory mandatory minimum penalty of five years in prison – which must run consecutively to any other sentence imposed – and a maximum potential penalty of life in prison. Each firearm count carries a maximum fine of $250,000.

U.S. Attorney Carpenito credited members of the Essex County Sheriff’s Office, under the direction of Sheriff Armando B. Fontoura; special agents of the ATF, Newark Field Division, under the direction of Special Agent in Charge Charlie J. Patterson; deputy marshals with the U.S. Marshals Service in the District of New Jersey, under the supervision of U.S. Marshal Juan Mattos Jr.; as well as deputy marshals with the U.S. Marshals Service in the Northern District of Georgia, under the supervision of U.S. Marshal Michael S. Yeager, with the investigation leading to the charges and arrest. He also thanked the Bloomfield Police Department for its assistance with this case.

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

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

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

NEWARK, N.J. – A Bergen County, New Jersey, man was arrested today on charges of possessing and distributing images of child sexual abuse, U.S. Attorney Craig Carpenito announced.

Nicholas Corsale-Althawabta, 19, of Oakland, New Jersey, is charged by complaint with one count of distribution of child pornography and one count of possession of child pornography. He appeared by videoconference today before U.S. Magistrate Judge Leda Dunn Wettre and was released on $100,000 unsecured bond.

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

On Jan. 16, 2020, Corsale-Althawabta used an internet-based application to distribute multiple graphic videos depicting the sexual abuse of minors. Law enforcement officers discovered numerous videos of child sexual abuse on Corsale-Althawabta’s electronic devices when he was arrested at his home today.  

The charge of distribution of child pornography carries a mandatory minimum penalty of five years in prison, a maximum penalty of 20 years in prison and a fine of $250,000. The charge of possession of child pornography carries a maximum penalty of 10 years in prison and a fine of $250,000.

U.S. Attorney Carpenito credited special agents with the U.S. Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Jason J. Molina, with the investigation leading to these charges. 

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

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

CAMDEN, N.J. – A New Jersey attorney was sentenced today to 216 months in prison for money laundering as part of a multi-year scheme to embezzle money from his clients, U.S. Attorney Craig Carpenito announced.

Michael W. Kwasnik, 51, previously pleaded guilty before U.S. District Judge Robert B. Kugler in Camden federal court to an information charging him with money laundering. Judge Kugler imposed the sentence today by videoconference.

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

Kwasnik was an attorney licensed in New Jersey and Pennsylvania who specialized in providing estate and financial planning services to his clients. He used his position as an attorney in estate planning to convince clients to open irrevocable family trusts to hold the client’s money and provide the client an opportunity to earn interest on their funds. Kwasnik advised potential clients that estate planning was necessary to protect assets from federal and state taxes. As part of the estate planning, Kwasnik established various trusts, typically irrevocable family trusts for clients with Kwasnik named as the trustee. For each trust, an Employer Identification Number (EIN) was obtained and a bank account in the name of the trust was opened at TD Bank. As trustee, Kwasnik had signature authority on the bank accounts.

The underlying scheme ran from late 2008 to November 2011. Kwasnik advised clients to transfer money and assets into the trusts for financial protection. In some cases, Kwasnik advised clients that he would remain as the trustee until the estates were settled, at which time the assets would be turned over to the appropriate beneficiaries.

Dozens of his clients turned over approximately $13.2 million to Kwasnik for safeguarding of their beneficiaries’ trusts. After the clients transferred funds into the trust bank accounts under Kwasnik’s control, Kwasnik immediately began transferring the money out of the trust accounts and into the bank accounts of entities that he controlled until the money was entirely depleted from the trust accounts, usually in just a matter of days. Kwasnik then used that money to conduct thousands of intermingled financial transactions and pay personal expenses for himself and others and for the operations of the entities he controlled.

In addition to the prison term, Judge Kugler sentenced Kwasnik to three years of supervised release and ordered him to pay $11.7 million in restitution.

U.S. Attorney Carpenito credited special agents with the FBI, under the direction of Special Agent in Charge Michael J. Driscoll, Philadelphia Division, and special agents of IRS- Criminal Investigation, under the direction of Special Agent in Charge Michael Montanez, with the investigation leading to today’s sentencing. He also thanked Assistant U.S. Attorney Sarah Wolfe of the Eastern District of Pennsylvania for her assistance.

The government is represented by Assistant U.S. Attorney Norman Gross and Senior Trial Counsel Jason Richardson of the Camden office.

NEWARK, N.J. – A federal appeals court today upheld the conviction of George Gilmore, a former partner in an Ocean County, New Jersey, law firm, on charges of failing to pay over payroll taxes to the IRS and making false statements in a loan application, Attorney for the United States Rachael A. Honig announced.

Gilmore, 71, of Toms River, New Jersey, a former equity partner and shareholder at Gilmore & Monahan P.A., was convicted in April 2019 on two counts of failing to pay over payroll taxes withheld from employees to the IRS and one count of making false statements on a bank loan application submitted to Ocean First Bank N.A. He was sentenced Jan. 22, 2020, to one year and one day in prison.

In the non-precedential ruling written by Judge Thomas Hardiman for a three-judge panel of the U.S. Court of Appeals for the Third Circuit, the court rejected four separate claims raised by Gilmore. It agreed with the government that the trial judge properly excluded expert psychiatric testimony supporting Gilmore’s claim that a “hoarding” disorder made him spend lavishly on personal expenses rather than make timely payments to the IRS. Gilmore contended that testimony would have negated his intent to commit the charged tax crimes. The court also rejected Gilmore's challenges to the jury instructions and sufficiency of evidence.

The government was represented on appeal by Assistant U.S. Attorney Bruce P. Keller of the U.S. Attorney’s Office’s Special Prosecutions Division and Steven G. Sanders of the Appeals Division. The government was represented at trial by Deputy U.S. Attorney Matthew J. Skahill; Assistant U.S. Attorney Jihee G. Suh of the Special Prosecutions Division; and Trial Attorney Thomas F. Koelbl of the U.S. Department of Justice, Tax Division.