District of New Jersey

NEWARK, N.J.– A Bronx, New York, man was charged for his participation in a scheme to steal and alter checks from the mail and engage in bank fraud, U.S. Attorney Craig Carpenito announced today.

Claude Anthony Burnett, 23, is charged by complaint with one count of bank fraud conspiracy and one count of conspiracy to receive and possess stolen mail. He is scheduled to appear by videoconference this afternoon before U.S. Magistrate Judge Michael A. Hammer.

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

From at least February 2020 to November 2020, Burnett and others conspired to steal checks from mailboxes in and around Morris, Essex, Somerset, and Passaic counties, alter the stolen checks, and deposit the altered checks into bank accounts controlled by Burnett and his conspirators. To date, the investigation has identified over 140 checks with a face value of over $600,000 that have been stolen, altered, and deposited in accounts controlled by Burnett and his conspirators.

The count of bank fraud conspiracy carries a maximum sentence of 30 years in prison and a fine of $1 million; the count of conspiracy to receive and possess stolen mail 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.

U.S. Attorney Carpenito credited special agents 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 charges. 

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

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

CAMDEN, N.J. – A Salem County, New Jersey, man today admitted to illegally possessing a handgun, U.S. Attorney Craig Carpenito announced.

Rahim Seals, 27, of Salem City, New Jersey, pleaded guilty by videoconference before U.S. District Judge Noel L. Hillman to an indictment charging him with one count of possession of a firearm by a previously convicted felon.

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

On Dec. 27, 2019, while Seals was walking in Salem City, detectives from the Salem County Prosecutor’s Office attempted to arrest Seals on an outstanding warrant. Seals fled and dropped a Sig Sauer P238 .380 caliber handgun loaded with seven hollow point rounds of ammunition. Seals has at least three prior felony convictions, including a controlled substance offense and two resisting arrest offenses.

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

This case is part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local and tribal authorities in investigating and prosecuting gun crimes; improves information sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and 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, under the direction of Special Agent in Charge Charlie J. Patterson, Newark Field Division, Camden Field Office, with the investigation leading to today’s guilty plea.  He also thanked the Salem City Police Department, under the direction of Chief John A. Pelura, III, and the Salem County Prosecutor’s Office, under the direction of Prosecutor John T. Lenahan, for their assistance.

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

CAMDEN, N.J. – A previously convicted felon will make his initial court appearance today on charges of illegal possession of a handgun and possession with intent to distribute fentanyl, U.S. Attorney Craig Carpenito announced.

Desmund M. Walker, 35, of Camden, is charged by complaint with one count of illegal possession of a handgun and one count of possession with intent to distribute fentanyl. He appeared by videoconference before U.S. Magistrate Judge Karen M. Williams and was detained without bail.

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

On May 16, 2020, patrol officers from the Camden County Police Department – Metro Division encountered Walker in the vicinity of South 8th and Thurman streets in Camden. Walker fled from the officers, discarding a fully loaded Rohm, model RG10, .22 caliber revolver and cellular telephone as he scaled a fence and fled through Robert B. Johnson Park. Walker is a convicted felon and not permitted to possess a handgun under federal law. Walker was apprehended and found to be in possession of 0.19 grams of fentanyl wrapped in 93 white wax folds.

The maximum penalty for illegal possession of the firearm is 10 years in prison and a fine of up to $250,000. The maximum penalty for possession of fentanyl with intent to distribute is 20 years in prison and a $1 million fine.

U.S. Attorney Carpenito credited special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Charlie J. Patterson, Newark Field Division, with the investigation leading to today’s charges. U.S. Attorney Carpenito also thanked the Camden County Police Department, under the direction of Chief Joseph D. Wysocki, for their assistance.

The government is represented by Assistant U.S. Attorney Diana Vondra Carrig of the Criminal Division in Camden.

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

TRENTON, N.J. – A Monmouth County, New Jersey, man today admitted being a felon in possession of a firearm and unlawfully possessing a machinegun, U.S. Attorney Craig Carpenito announced.

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

According to documents filed today and statements made in court:

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

The felon in possession of a firearm and possession of a machinegun charges each carry a maximum penalty of 10 years in prison and a fine of up to $250,000. Sentencing is scheduled for April 12, 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 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, Newark Division, Trenton Field Office, under the direction of Special Agent in Charge Charlie J. Patterson; officers of the Neptune City Police Department, under the direction of Police Director Matthew Quagliato; officers of the Neptune Township Police Department, under the direction of Chief of Police James M. Hunt, Jr.; officers of the Asbury Park Police Department, under the direction of Chief of Police David Kelso; officers of the Monmouth County Sheriff’s Office, under the direction of Sheriff Shaun Golden; and detectives of the Monmouth County Prosecutor’s Office, under the direction of Prosecutor Christopher  J. Gramiccioni, with the investigation leading to today’s guilty plea.

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

TRENTON, N.J. – A Mercer County, New Jersey, man was sentenced today to 120 months in prison for being a felon in possession of a firearm, U.S. Attorney Craig Carpenito announced.

Rasheed McNair, 41, of Ewing, New Jersey, was previously convicted of being a felon in possession of a weapon following a two-day trial before U.S. District Judge Peter G. Sheridan in Trenton federal court. Judge Sheridan imposed the sentence by videoconference today.

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

On Feb. 18, 2018, two Trenton Police detectives in the Street Crimes Unit were driving through the area of Oakland Street and Hoffman Avenue in Trenton when one of them observed McNair standing in an open doorway in a public housing complex and holding what was later identified as a Smith & Wesson .40 caliber semiautomatic handgun. 

McNair tucked the handgun into his jacket and ran up the stairwell of the building. After giving chase, one of the detectives observed McNair remove the handgun from inside his jacket and attempt to hide it under a doormat in front of an apartment. The other detective retrieved the firearm from under the doormat and rendered it safe. The weapon was later found to be loaded with 11 rounds of ammunition in the magazine and one round in the chamber, and its serial number had been obliterated.

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

U.S. Attorney Carpenito credited the Trenton Police Department, under the direction of Police Director Sheilah A. Coley; and 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, with the investigation leading to today’s sentencing.

The government is represented by Assistant U.S. Attorneys Elisa T. Wiygul and Michelle S. Gasparian of the U.S. Attorney’s Office’s Criminal Division in Trenton.

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

Gary Mitchell, 60, of Philadelphia, previously pleaded guilty before U.S. District Judge Noel L. Hillman to an information charging him with one count of escape. Judge Hillman imposed the sentence today by videoconference.

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

On May 20, 2008, Mitchell was sentenced to 151 months in prison following his conviction for bank robbery in the District of New Jersey. On Feb. 5, 2018, Mitchell was transferred to the custody of Kintock Residential Re-entry Center, a halfway house in Bridgeton, New Jersey. On May 24, 2018, after failing to return after being issued a medical pass, Mitchell was charged with escape.

Mitchell was sentenced to today to serve an additional term of eight months in prison for the escape conviction, which will run consecutively to his original sentence for the bank robbery. As a result of his escape, he has lost an additional 425 days of good time credit, which he must now serve.  

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 U.S. Attorney Andrew Carey, Attorney in Charge of the Camden Office.

NEWARK, N.J. – A Bergen County, New Jersey, man today admitted his role in a scheme to defraud financial institutions of hundreds of thousands of dollars, U.S. Attorney Craig Carpenito announced.

Dennys A. Tapia, 54, of Ridgefield Park, New Jersey, pleaded guilty by videoconference before U.S. District Judge Stanley R. Chesler to an information charging him with one count of conspiracy to commit bank fraud.

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

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

Tapia admitted to participating in a conspiracy in which he knowingly provided fraudulent documents to a loan officer at Mortgage Lender A for potential borrowers, including  fraudulent lease agreements, bank statements, and a gift check and gift letter. Based on this false information, Mortgage Lender A issued mortgage loans to unqualified buyers, which caused Mortgage Lender A hundreds of thousands of dollars in losses. Tapia also admitted to conspiring with a straw borrower, “Individual A,” to submit an application to Mortgage Lender B for a cash-out refinance mortgage loan that contained multiple misrepresentations of material facts and fraudulent documents, including pay stubs and a verification of employment. Based on the false information submitted by Individual A and Tapia, Mortgage Lender B issued a false and fraudulent cash-out refinance mortgage loan, which resulted in Tapia earnings tens of thousands of dollars in profits.   

The conspiracy charge to which Tapia pleaded guilty carries a maximum of 30 years in prison and a $1 million fine. 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, and special agents of the Federal Housing Finance Agency, Office of Inspector General, under the direction of Special Agent in Charge Robert Manchak, with the investigation leading to today’s guilty plea.

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

NEWARK, N.J. – A Hudson County, New Jersey, man previously convicted of three felonies admitted today to illegally possessing a firearm and ammunition in connection with a shooting, U.S. Attorney Craig Carpenito announced.

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

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

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

The charge to which Armfield pleaded guilty carries a maximum penalty of 10 years in prison and a fine of up to $250,000. Sentencing is scheduled for April 6, 2021.

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

U.S. Attorney Carpenito credited special agents and task force officers of the ATF, under the direction of Special Agent in Charge Charlie J. Patterson, Newark Field Division, and the Jersey City Police Department, under the direction of Public Safety Director James Shea, with the investigation leading to today’s guilty plea. He also thanked the Hudson County Prosecutor’s Office, under the direction of Prosecutor Esther Suarez, for its assistance with the investigation.

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

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

TRENTON, N.J. – A Mercer County, New Jersey, man is expected to make his initial appearance today after being charged with possession with the intent to distribute 100 grams or more of heroin, U.S. Attorney Craig Carpenito announced.

Daevon Bell, 26, of Hamilton Township, New Jersey, is charged by complaint with one count of possession with intent to distribute 100 grams or more of heroin. He was arrested by special agents of the U.S. Drug Enforcement Administration on Dec. 1, 2020, and is scheduled to appear this afternoon before U.S. Magistrate Judge Douglas E. Arpert.

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

A law enforcement investigation revealed that Bell was engaged in the distribution of heroin in Trenton and the surrounding area. Based on information received from a reliable source, law enforcement officials determined that Bell was in possession of a large quantity of heroin on Dec. 1, 2020. Law enforcement officials followed Bell in his vehicle from Trenton to Morrisville, Pennsylvania. Bell drove to an apartment complex, retrieved a bag from the trunk of his vehicle and entered an apartment. Shortly thereafter, Bell exited the apartment holding a bag and returned to his vehicle. Law enforcement agents approached Bell, who then attempted to flee in his vehicle, striking a DEA agent and striking another occupied law enforcement vehicle. Bell discarded the bag from the vehicle, and then led law enforcement on a high-speed chase into New Jersey, and was apprehended in Lawrenceville, New Jersey. Law enforcement recovered approximately 150 bricks of suspected heroin from the bag that Bell had discarded from the vehicle.

The charge of possession with intent to distribute 100 grams or more of heroin carries a minimum sentence of five years and a maximum of 40 years in prison, and a $5 million fine.
U.S. Attorney Carpenito credited special agents of the DEA under the direction of Special Agent in Charge Susan A. Gibson.in Newark, and the Philadelphia Division under the direction of Special Agent in Charge Jonathan A. Wilson, with the investigation leading to today’s charges. He also thanked the Buck’s County District Attorney’s Office, under the direction of District Attorney Matthew D. Weintraub and the Mercer County Prosecutor’s Office, under the direction of Prosecutor Angelo J. Onofri, for their assistance.

The case was investigated as part of the Violent Crime Initiative (VCI) in Mercer County, New Jersey. The VCI was formed in August 2020 by the U.S. Attorney’s Office for the District of New Jersey and the Mercer County Prosecutor’s Office, and the Trenton Police Department for the purpose of combatting violent crime in and around Trenton. As part of this partnership, federal, state, and local 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 Trenton Police Department, and the New Jersey State Police Regional Operations and Intelligence Center/Real Time Crime Center, N.J.

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

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

Defense counsel: Brian P. Reilly Esq., Assistant Federal Public Defender, Trenton

NEWARK, N.J. – Two New Jersey men were charged with theft of government property and fraudulently altering United States Postal Service (USPS) postage stamps, U.S. Attorney Craig Carpenito announced today.

Jack Koch a/k/a/ “Ismail Yilmaz,”44, of Elmwood Park, New Jersey, and Steven Koch, a/k/a “Selim Memis,” 43, of Pompton Lakes, New Jersey, are each charged by complaint with one count of theft of government funds and one count of postage stamp fraud. Both defendants are scheduled to appear by videoconference this afternoon before U.S. Magistrate Judge Michael A. Hammer.

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

Jack Koch and Stephen Koch, owners of a high volume e-commerce Amazon seller, Fresh N Clear LLC (Fresh N Clear), altered postage labels in a manner designed to benefit their business, causing losses in revenue to USPS in excess of $6 million.

The defendants purchased Flat Rate Envelope postage labels meant for USPS-produced compact envelopes, and altered those labels to send their merchandise in larger boxes at discounted flat rates. The Kochs were able to perpetrate the fraud by removing the required USPS visual endorsement “FLAT RATE ENV” from the postage label. Unlike other mail pieces, whose labels need not show the postage paid in a readable format, USPS policy requires the visual endorsement “FLAT RATE ENV” to appear on all mail pieces sent using the “Flat Rate Envelope” discounted rate, allowing USPS employees to determine whether the appropriate postage was, in fact, paid, and that each mail piece sent using that discounted rate does, in fact, weigh 70 pounds or less and fit into the special USPS compact envelope.

Between January 2020 and September 2020, the Kochs caused Fresh N Clear to purchase 240,471 USPS Priority Mail postage labels – almost all for Flat Rate Envelopes. They altered the postage labels in order to send large household items that would not ordinarily fit into a Flat Rate Envelope (such as cases of bottled water, laundry detergent, and cases of soda) at the discounted flat rate. 

Theft of government property carries a maximum penalty of 10 years; postage stamp fraud carries a maximum of five years. Both offenses also carry a maximum fine $250,000, or twice the gain derived from the offense or loss caused by the offense, whichever is greater.

U.S. Attorney Carpenito credited postal inspectors of the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge Raimundo Marrero, with the investigation leading to the charges.

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

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

NEWARK, N.J. – A Florida attorney today admitted his role in a scheme to extort $7.5 million from a California bank, Attorney for the United States Rachael A. Honig announced.

Richard L. Williams, 73, of Miami, Florida, pleaded guilty by videoconference before U.S. District Judge Susan D. Wigenton to an information charging him with conspiracy to transmit an interstate communication with the intent to extort.

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

Beginning in May 2020, Williams and his client (Client-1) conspired to extort $7.5 million from a commercial bank headquartered in California (Bank-1). Williams threatened Bank-1 that if it did not pay Client-1 $7.5 million, Client-1 would publicly disclose that Client-1 had accessed and obtained certain confidential data from the bank that did not belong to Client-1 and that Client-1 was not authorized to retain.

On June 18, 2020, Williams sent an email to an attorney for Bank-1 that attached a proposed agreement that Bank-1 had not requested. The agreement – titled “Settlement, Assistance, and Confidentiality Agreement” – provided for Bank-1 to pay Client-1 approximately $7.5 million as a “settlement, assistance and confidentiality fee” within 48 hours of signing the agreement. The payment was purportedly in exchange for Client-1 serving for one week as an “advisor” to Bank-1, a service that Bank-1 had not requested, and agreeing not to publicize confidential Bank-1 data that Client-1 had accessed and obtained. The agreement was designed to conceal that Williams and Client-1 were extorting Bank-1.

From July through August 2020, Williams also engaged in a series of telephone conversations with an undercover law enforcement agent (UC-1) who Williams believed was a representative of Bank-1 located in New Jersey, with authority to transfer funds to Williams. During a telephone call with UC-1 on July 24, 2020, Williams warned UC-1 that if Bank-1 did not pay Client-1 it should “fear” that Client-1 might reveal to various third parties that Client-1 had accessed and obtained the confidential data from Bank-1 or issue a press release disclosing that information. Williams also implied that if Bank-1 refused to accede to his demands and pay Client-1, there may be violent consequences from third parties unrelated to Williams. Williams warned UC-1 that “FBI agents were murdered a couple of blocks from where [he was] sitting,” and that if Williams were in Bank-1’s position, “what would scare the [expletive] out of [him] would be” the reaction of those third parties to the public revelation of Client-1’s access and retention of the data.

The charge to which Williams pleaded guilty carries a maximum penalty of five years in prison and a fine of $250,000, or twice the gross grain or loss from the offense, whichever is greater. Williams’s sentencing is scheduled for April 6, 2021.

Attorney for the United States Honig credited the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark; the U.S. Department of Health and Human Services, Office of Inspector General, under the direction of Special Agent in Charge Scott Lampert; Defense Criminal Investigative Service, under the direction of Special Agent in Charge Patrick J. Hegarty; the U.S. Department of Veterans Affairs Office of Inspector General, under the direction of Special Agent in Charge Christopher F. Algieri; and special agents of the U.S. Attorney’s Office for the District of New Jersey with the investigation leading to today’s guilty plea.

The government is represented by Assistant U.S. Attorney Sean M. Sherman and Bernard J. Cooney, Acting Chief of the Opioid Abuse Prevention & Enforcement, of the U.S. Attorney’s Office in Newark.

NEWARK, N.J. – The daughter of a former secretary treasurer of a union at Jersey City Medical Center today admitted her role in helping her mother embezzle $40,455 from the union, U.S. Attorney Craig Carpenito announced.

Jennifer Rogers, 38, of Jersey City, New Jersey, pleaded guilty by videoconference before U.S. District Judge Stanley R. Chesler to Count One of an indictment charging her with embezzling from Local 2254 of the American Federal State County and Municipal Amalgamated Transit Workers Union (AFSCME) in Hudson County.

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

Linda Rogers was employed at the Jersey City Medical Center and also held a part-time position at Local 2254 as its secretary treasurer. In that role, she had sole control over the union’s checkbook and savings account. From July 2016 through August 2017, Jennifer Rogers, also an employee at the hospital at that time, deposited 112 unauthorized checks totaling $35,267 from Local 2254’s account to joint checking and savings accounts she owned with her mother. From October 2016 through December 2016, Linda Rogers allegedly made six telephonic wire transfers from the 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 of embezzlement from a labor union carries a maximum penalty of five years in prison and a $250,000 fine. Sentencing is scheduled for April 20, 2021.

U.S. Attorney Carpenito credited the 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.

The pending charges against Linda Rogers are merely accusations, and she is presumed innocent unless and until proven guilty.

NEWARK, N.J. – An Essex County, New Jersey, woman was charged with defrauding elderly victims through a lottery scam in which victims were falsely told that they had won large sums of money, U.S. Attorney Craig Carpenito announced today.

Shanile Lyle, 27, of Orange, New Jersey, was arrested today and charged by complaint with one count of conspiracy to commit wire fraud. She appeared by videoconference before U.S. Magistrate Judge Michael A. Hammer and was released on $200,000 unsecured bond.

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

In 2018, several elderly victims received telephone calls alerting them that they had won large sums of money and various other prizes. The victims were informed that they would have to pay taxes on these winnings and, as a result, sent numerous checks totaling at least $675,000 to Lyle and her conspirators. Lyle deposited these funds into back accounts she controlled and transferred portions of the money to her conspirators.

The count of conspiracy to commit wire fraud carries a maximum of penalty of 20 years in prison and a fine of $250,000, or twice the pecuniary gain to the defendant or twice the gross loss involved, whichever is greater. 

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 the charges. 

The government is represented by Assistant U.S. Attorney Vera Varshavsky of the U.S. Attorney’s Cybercrimes Unit in Newark.

Elder abuse is a serious crime against some of our nation’s most vulnerable citizens and is one of the Department of Justice’s key priorities. In 2018, the Department ordered each of the 94 U.S. Attorneys’ offices to appoint an Elder Justice Coordinator tasked with fulfilling the Elder Abuse Prevention and Prosecution Act (EAPPA) of 2017’s mandate of: serving as the legal counsel for the federal judicial district on matters relating to elder abuse; prosecuting, or assisting in the prosecution of, elder abuse cases; conducting public outreach and awareness activities relating to elder abuse; and ensuring the collection of data required to be collected under the EAPPA.

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 was sentenced today to 144 months in prison for his role as a member of a heroin trafficking conspiracy, U.S. Attorney Craig Carpenito announced.

Raheem Tarry, 34, of Newark, previously pleaded guilty by video conference before U.S. District Judge Susan D. Wigenton to two counts of a third superseding indictment charging him with conspiracy to distribute and possess with intent to distribute one kilogram or more of heroin and distribution of heroin and possession of heroin with intent to distribute. Judge Wigenton imposed the sentence by videoconference today.

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

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

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

Between March and August 2018, Tarry and 27 other individuals were charged by criminal 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 Tarry and four other defendants with conspiracy to distribute one kilogram or more of heroin and various other drug and firearms offenses; the alleged leader of the organization also was charged with participating in a continuing criminal enterprise. The charges in the complaint and third superseding indictment remain pending as to several of the defendants and one is charged in a separate indictment. They are presumed innocent unless and until proven guilty. 

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

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 sentencing. 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.

A Sussex County, New Jersey, woman, Maria Bell, a/k/a “Maria Sue Bell,” 53, of Hopatcong, New Jersey, was arrested at her home today and charged with one count of knowingly concealing the provision of material support and resources to a Foreign Terrorist Organization Assistant Attorney General for National Security John C. Demers and U.S. Attorney Craig Carpenito for the District of New Jersey announced.

She is scheduled to appear by videoconference this afternoon before U.S. Magistrate Judge Cathy L. Waldor.

According to documents filed in Court, beginning at least as early as March of 2017, Bell used mobile applications to communicate with and provide advice to fighters based in Syria who were members of various factions fighting the Assad regime.   The complaint is centered on her communications with, and provision of money to, one specific fighter based in Syria, a self-identified member of Hay’at Tahrir al-Sham (HTS), an alias for the the designated Foreign Terrorist Organization the al-Nusra Front (ANF).  Notably, Bell sent currency to this fighter via Western Union using an intermediary to conceal the source of the funds, and also provided him advice on weapons and ammunition. 

The charge of concealment of terrorist financing to a designated foreign terrorist organization carries a maximum penalty of 10 years in prison and a fine of $250,000.

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

The government is represented by Assistant U.S. Attorney Dean C. Sovolos of the U.S. Attorney’s Office National Security Unit with the assistance of the Department of Justice, National Security Division Counterterrorism Section.

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 Sussex County, New Jersey, woman, was arrested at her home today in connection with concealing sending money to a Syrian foreign terrorist organization, U.S. Attorney Craig Carpenito announced.

Maria Bell, a/k/a “Maria Sue Bell,” 53, of Hopatcong, New Jersey, is charged by complaint with one count of knowingly concealing the provision of material support or resources to a designated foreign terrorist organization. She is scheduled to appear by videoconference this afternoon before U.S. Magistrate Judge Cathy L. Waldor.

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

From February of 2017, Bell used encrypted applications to communicate with and provide advice to fighters based in Syria who were members of the al-Nusra Front (ANF), also known by other aliases, including Hay’at Tahrir al-Sham (HTS), fighting the Assad regime. Bell communicated with and provided money to one self-identified member of HTS based in Syria, identified in the complaint as “User 1.”  Bell sent currency to User 1 via Western Union, using an intermediary to conceal the source of the funds, and also provided him advice on weapons and ammunition.

In communications with HTS fighters, Bell cited her professional experience – including her specialized weapons training while on active duty in the U.S. Army and Army National Guard – to provide guidance concerning operational security issues, firearms purchases, and military knowledge. She had thousands of encrypted communications with User 1 about operational planning and provided details with regard to concealing payments sent to User 1.

User 1 made his status as an HTS fighter clear. In one communication, Bell and User 1 discussed User 1’s pledge to HTS and the ongoing Syrian conflict. Bell stated: “If Assad wins, mujahideen will be persecuted again,” and “If Assad wins, I cannot get a visa into Syria. I cannot come to you.” In the same communication, the defendant later asked User 1 if he was ready to fight:

Bell:    Are you ready to fight in front line with other fighters? You are no longer young child like you used to be.

Bell:    It will be frightening. But I am with you

 In another communication, User 1, after discussing U.S. support for the Syrian regime, which HTS and other groups were fighting at the time, stated: “If you want to hit the Syrian airports, we will return to revenge within New York.” Later in the encrypted communication, Bell states “If there were ever an attack in New York, all Muslims and helpers like me will be arrested….”

Bell provided advice to User 1 regarding the purchase of a firearm and ammunition for User 1. They discussed the cost and type of weapons that would be good for User 1, in addition to various types of ammunition.

Bell also wired money, often at the direction of User 1, to individuals in Turkey and Syria who are supporters of HTS, knowing that the funds would support acts of terrorism by HTS. The defendant concealed the nature, location, and ownership of payments, sending at least 18 payments totaling $3,150 to several accounts used by User-1’s associates. In one communication, she expressed concern that her transfers could be tracked by U.S. law enforcement:

Bell:    But I will not have my account watched more closely than it is already.

Bell:    Each time I withdraw money, it is noted because Western Union is trying to track fraud and terrorists for the government.

The charge of concealment of terrorist financing to a designated foreign terrorist organization carries a maximum penalty of 10 years in prison and a fine of $250,000.

U.S. Attorney Carpenito credited special agents of the FBI and task force officers of the Joint Terrorism Task Force, under the direction of Special Agent in Charge George M. Crouch Jr., 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 today’s charges.

The government is represented by Assistant U.S. Attorney Dean C. Sovolos of the U.S. Attorney’s Office National Security Unit and Trial Attorney Brenda Sue Thornton of the Department of Justice, National Security Division.

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. – Opioid manufacturer Purdue Pharma LP (Purdue) today admitted its guilt in conspiracies to defraud the United States, violate the Food, Drug, and Cosmetic Act, and violate the Federal Anti-Kickback Statute, the Department of Justice announced.

Purdue pleaded guilty by videoconference before U.S. District Judge Madeline Cox Arleo in Newark federal court to an information charging it with one count of dual-object conspiracy to defraud the United States and to violate the Food, Drug, and Cosmetic Act, and two counts of conspiracy to violate the Federal Anti-Kickback Statute.

“Purdue admitted that it marketed and sold its dangerous opioid products to healthcare providers, even though it had reason to believe those providers were diverting them to abusers,” Attorney for the United States Rachael A. Honig, District of New Jersey, said. “The company lied to the Drug Enforcement Administration about steps it had taken to prevent such diversion, fraudulently increasing the amount of its products it was permitted to sell. Purdue also paid kickbacks to providers to encourage them to prescribe even more of its products.”

“The abuse and diversion of prescription opioids has contributed to a national tragedy of addiction and deaths, in addition to those caused by illicit street opioids,” said Deputy Attorney General Jeffrey A. Rosen. “Today’s guilty pleas to three felony charges send a strong message to the pharmaceutical industry that illegal behavior will have serious consequences. Further, today’s convictions underscore the Department’s commitment to its multi-pronged strategy for defeating the opioid crisis.”

“As today's plea to felony charges shows, Purdue put opioid profits ahead of people and corrupted the sacred doctor-patient relationship,” Christina Nolan, U.S Attorney for the District of Vermont, said. “We hope the company's guilty plea sends a message that the Justice Department will not allow big pharma and big tech to engage in illegal profit-generating schemes that interfere with sound medicine. We hope, also, that this guilty plea will bring some sense of justice to those who have suffered from opioid addictions involving oxycodone and some vindication for families and loved ones of those who did not survive such addiction."

“This case makes clear that no company, including Purdue Pharma, whose actions harm the health and safety of the American public, is beyond the reach of law enforcement,” Assistant Director Calvin Shivers of the FBI's Criminal Investigative Division said. “The opioid epidemic continues to spread across the United States impacting countless Americans and harming communities. Together with our law enforcement partners, the FBI is committed to investigating and holding criminals accountable for the roles they play in fueling this crisis.”

As part of today’s guilty plea, Purdue admitted that from May 2007 through at least March 2017, it conspired to defraud the United States by impeding the lawful function of the Drug Enforcement Administration (DEA). Purdue represented to the DEA that it maintained an effective anti-diversion program when, in fact, Purdue continued to market its opioid products to more than 100 health care providers whom the company had good reason to believe were diverting opioids. Purdue also reported misleading information to the DEA to boost Purdue’s manufacturing quotas. The misleading information comprised prescription data that included prescriptions written by doctors that Purdue had good reason to believe were engaged in diversion. The conspiracy also involved aiding and abetting violations of the Food, Drug, and Cosmetic Act by facilitating the dispensing of its opioid products, including OxyContin, without a legitimate medical purpose, and thus without lawful prescriptions.

Purdue also admitted it conspired to violate the federal Anti-Kickback Statute. Between June 2009 and March 2017, Purdue made payments to two doctors through Purdue’s doctor speaker program to induce those doctors to write more prescriptions of Purdue’s opioid products. Also, from April 2016 through December 2016, Purdue made payments to Practice Fusion Inc., an electronic health records company, in exchange for referring, recommending, and arranging for the ordering of Purdue’s extended release opioid products – OxyContin, Butrans, and Hysingla.

Under terms of the plea agreement, Purdue agreed to the imposition of the largest penalties ever levied against a pharmaceutical manufacturer, including a criminal fine of $3.544 billion and an additional $2 billion in criminal forfeiture. For the $2 billion forfeiture, the company will pay $225 million within three business days following the entry of a judgment of conviction in accordance with the Plea Agreement. The Department is willing to credit the value conferred by the company to state and local governments under the Department’s anti-piling on and coordination policy if certain conditions are met.

Purdue has also agreed to a civil settlement that provides the United States with an allowed, unsubordinated, general unsecured bankruptcy claim for recovery of $2.8 billion to resolve its civil liability under the False Claims Act. Separately, the Sackler family will pay $225 million in damages to resolve its civil False Claims Act liability.

The criminal and civil resolutions, which were announced on Oct. 21, 2020, do not include the criminal release of any individuals, including members of the Sackler family, nor are any of the company’s executives or employees receiving civil releases.

On Nov. 17, 2020, the bankruptcy court in the Southern District of New York approved the financial terms of the global resolution with the company. The resolution includes the condition that the company cease to operate in its current form and instead emerge from bankruptcy as a public benefit company (PBC) or entity with a similar mission designed for the benefit of the public. The proceeds of the PBC will be directed toward state and local opioid abatement programs. Based on the value that would be conferred to state and local governments through the PBC, the Department is willing to credit up to $1.775 billion against the agreed $2 billion forfeiture amount. The Department looks forward to working with the creditor groups in the bankruptcy in charting the path forward for this PBC to best accomplish public health goals.

The global resolution does not resolve claims that states may have against Purdue or members of the Sackler family, nor does it impede the debtors’ or other third parties’ ability to recover any fraudulent transfers.

Today’s announcement was made by First Assistant U.S. Attorney for the District of New Jersey Honig; Deputy Attorney General Rosen; Acting Assistant Attorney General of the Civil Division Clark; and U.S. Attorney for the District of Vermont Nolan. The criminal investigation was conducted by the U.S. Attorney’s Offices for the Districts of New Jersey and Vermont, the Consumer Protection Branch of the Department of Justice’s Civil Division, and the FBI’s Washington, D.C., and Newark Field Offices, with assistance by DEA. The civil settlements were handled by the Fraud Section of the Commercial Litigation Branch of the Department of Justice’s Civil Division, and the U.S. Attorney’s Offices for the Districts of New Jersey and Vermont, with assistance from the Department of Health and Human Services, Office of General Counsel and Office of Counsel to the Inspector General; the Defense Health Agency; and the Office of Personnel Management. The Purdue bankruptcy matter is being handled by the U.S. Attorney’s Office for the Southern District of New York and the Civil Division’s Commercial Litigation Branch, Corporate/Finance Section.

The government is represented in the District of New Jersey by Deputy Chief of the Criminal Division Nicholas Grippo, Chief of the Opioids Unit Melissa Wangenheim, Chief of the Health Care Fraud Unit Lee M. Cortes Jr., and Assistant U.S. Attorneys J. Stephen Ferketic, Sean Sherman, Marihug P. Cedeño and Nicole Mastropieri.

Except to the extent of Purdue’s admissions as part of its criminal resolution, the claims resolved by the civil settlements are allegations only. There has been no determination of liability in the civil matters.

NEWARK, N.J. – A Paterson, New Jersey, man was sentenced today to 70 months in prison for conspiring to distribute 100 grams or more of heroin, and distributing a quantity of heroin, U.S. Attorney Craig Carpenito announced.

Tyson Jacobs, 21, 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 100 grams or more of heroin and knowingly and intentionally distributing heroin. Judge Martinotti imposed the sentence today by videoconference.

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

Jacobs and his 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 numerous controlled purchases of narcotics, consensually recorded telephone calls and text messages, physical surveillance, and the analysis of telephone call detail records, law enforcement determined that from at least September 2018 through Oct. 1, 2019, the defendant and his conspirators conspired to distribute narcotics, including heroin and fentanyl.

In addition to the prison term, Judge Martinotti sentenced Jacobs to four 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 U.S. 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 M. 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.

NEWARK, N.J. – A Passaic County, New Jersey, man today admitted possessing and distributing fentanyl, U.S. Attorney Craig Carpenito announced.

Glen Lebron, 33, of Paterson, New Jersey, pleaded guilty by videoconference before U.S. District Court Judge Brian R. Martinotti to one count of distribution and possession with intent to distribute more than 40 grams of fentanyl.

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

On April 29, 2019, Lebron arranged for the sale of 59.4 grams of fentanyl to an undercover agent of the U.S. Drug Enforcement Administration (DEA).

The count to which Lebron pleaded guilty carries a mandatory minimum sentence of five years in prison, a maximum of 40 years in prison and maximum fine of $5 million. 

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

The government is represented by Assistant U.S. Attorney Ryan L. O’Neill of the U.S. Attorney’s Office’s Opioid Abuse Prevention & Enforcement Unit.

NEWARK, N.J. – A New York man and a Passaic County, New Jersey, woman admitted that they participated in a scheme to defraud over 260 customers of their moving company out of more than $540,000, U.S. Attorney Craig Carpenito announced today.

Lior Atiyas (a/k/a “David Cohen”), 42, of Hewlett, New York, pleaded guilty by videoconference today before U.S. District Judge Claire C. Cecchi to an information charging him with one count of conspiracy to commit wire fraud and one count of conspiracy to commit health care fraud. Lola Larios (a/k/a “Michelle Jacobs”), 37, of Haledon, New Jersey, pleaded guilty by videoconference before Judge Cecchi on Nov. 19, 2020, to an information charging her with one count of conspiracy to commit wire fraud.

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

From as early as January 2016 through January 2019, Atiyas devised a scheme to enrich himself and his moving company, which used several names to conceal its true identity, including Premier Relocations LLC, Metro Van Lines Inc., Astoria Motor Van Company, Lyon Moving, and Empire Move. Larios began working for the company in January 2018, and immediately joined in the conspiracy. Atiyas and Larios regularly extorted customers by quoting them “low-ball” price estimates for moving household goods. Once the customers’ goods were loaded onto the moving trucks, Premier’s employees, at the direction of Atiyas and Larios, or Atiyas and Larios themselves, would drastically raise the price of the move (often two or three times that of the quoted estimate), and then refuse to deliver the goods until the customers paid the increased price. The aggregate difference between the initial low-ball estimates and the revised inflated amounts charged to victims was $547,525.

Atiyas also admitted participating in a scheme whereby he generated fake paystubs and a fake employment confirmation letter in order for an uncharged conspirator to obtain Medicaid benefits. As a result of his role in the health care fraud conspiracy, Atiyas caused the submission of over $40,000 in fraudulent medical claims.

The charge of conspiracy to commit wire fraud carries a maximum potential penalty of 20 years in prison, and a fine of $250,000, or twice the gross pecuniary gain to the defendants, or twice the gross pecuniary loss to the victims, whichever is greater. The charge of conspiracy to commit health care fraud carries a maximum potential penalty of 10 years in prison, and a fine of $250,000, or twice the gross pecuniary gain to the defendant, or twice the gross pecuniary loss to the victims, whichever is greater. Sentencing for both defendants is scheduled for April 1, 2021.

U.S. Attorney Carpenito credited special agents with the Department of Transportation, Office of the Inspector General, under the direction of Special Agent in Charge Douglas Shoemaker, Northeast Region, and 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, with the investigation leading to the guilty pleas.

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

NEWARK, N.J. – A Warren County, New Jersey, businessman who fraudulently obtained nearly $2 million in federal Paycheck Protection Program (PPP) loans will make his initial court appearance today, U.S. Attorney Craig Carpenito and Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division announced.

Rocco A. Malanga, 37, of Hackettstown, New Jersey, is charged by criminal complaint with one count of wire fraud, two counts of bank fraud, and one count of money laundering. He made his initial appearance by videoconference today before U.S. Magistrate Judge Joseph A. Dickson and was released on $750,000 unsecured bond.

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

Malanga used a variety of false statements to fraudulently obtain approximately $1.8 million in federal COVID-19 emergency relief funds meant for distressed small businesses.  Malanga submitted at least three PPP loan applications on behalf of three different business entities that fabricated their number of employees and average monthly payroll. He then diverted the PPP loan funds to accounts under the control of his relatives, including his minor children, and to another company that did not obtain a PPP loan.

In one instance, Malanga submitted a PPP loan application on behalf of one of his companies that had supporting documentation that claimed that the company had 47 employees, a monthly payroll of $324,081, and paid employees approximately $3.9 million in total compensation for 2019. Contrary to this documentation and these representations, IRS records showed that the company paid no salaries or wages in 2019.

Based on Malanga’s alleged misrepresentations, the three PPP loans were funded. As a result, Malanga received a total of nearly $1.8 million in federal COVID-19 emergency relief funds meant for distressed small businesses.

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.

The count of wire fraud carries a maximum penalty of 30 years in prison and a $1 million fine; the two counts of bank fraud carry a maximum penalty of 30 years in prison and a $1 million fine; and the count of money laundering carries a maximum penalty of 10 years in prison and a $250,000.

U.S. Attorney Carpenito and Acting Assistant Attorney General Rabbitt credited inspectors of the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge Raimundo Marrero; and special agents of IRS – Criminal Investigation, under the direction of Special Agent in Charge Michael Montanez, with the investigation leading to the charges. They also thanked the Office of Inspector General for the Board of Governors of the Federal Reserve System and the Bureau of Consumer Financial Protection; the Federal Deposit Insurance Corporation, Office of Inspector General; and the Social Security Administration, Office of the Inspector General.

The government is represented by Assistant U.S. Attorney Blake Coppotelli of the District of New Jersey and Trial Attorney Della Sentilles of the Fraud Section of the Department of Justice.

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 in the complaint are merely allegations, and the defendant is presumed innocent unless and until proven guilty in a court of law.

The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.

 

CAMDEN, N.J. – A Pennsylvania man made his initial appearance today in connection with the February 2020 robberies of two Camden County, New Jersey, banks, U.S. Attorney Craig Carpenito announced.

Leon I. Stanford, 51, of Wilkes Barre, Pennsylvania, is charged by complaint with two counts of bank robbery. The defendant was previously arrested by state authorities. He appeared by videoconference today before U.S. Magistrate Judge Joel Schneider and was detained without bail.

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

On Feb. 22, 2020, Stanford entered the TD Bank in Oaklyn, New Jersey, and handed the bank teller a note, which announced a robbery and demanded cash. The bank teller complied, and witnesses saw Stanford depart in a white SUV.

On Feb. 24, 2020, Stanford entered the Republic Bank in Cherry Hill, and similarly handed the bank teller a note which announced a robbery and demanded cash. The bank teller complied and witnesses saw Stanford depart in a white SUV.

Law enforcement officers were able to obtain a partial license plate number for the white SUV from surveillance videos in the area of both bank robberies, which generated a lead to a vehicle driven by Stanford. Numerous individuals familiar with Stanford identified him as the person in the bank surveillance videos. 

At the time of these bank robberies, Stanford was on federal supervised release as a result of his prior bank robbery convictions, for which he served a 10-year prison term. Each bank robbery charge carries a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. Stanford could face additional penalties for violating his term of supervised release.

U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Michael J. Driscoll in Philadelphia; the New York / New Jersey United States Marshals Regional Task Force Camden Division, under the direction of Jason McHugh; the Camden County Prosecutor’s Office, under the direction of Acting Prosecutor Jill S. Mayer; the Oaklyn Police Department, under the direction of Chief Mark Moore; and the Cherry Hill Police Department, under the direction of Chief William P. Monaghan, with the investigation.

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

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

TRENTON, N.J. – A Hamilton, New Jersey, man today admitted possessing a handgun in furtherance of a drug crime, U.S. Attorney Craig Carpenito announced today.

Armond Holloway, 44, of Hamilton, New Jersey, pleaded guilty before U.S. District Judge Michael A. Shipp via videoconference to Count Two of an indictment charging him with possession of a firearm in furtherance of possession with intent to distribute heroin.

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

On July 31, 2017, Holloway was on parole after having served a term of imprisonment.  Holloway’s parole officer received information from an anonymous source that Holloway, who had known gang affiliations, was in possession of a gun, 300-400 bricks of heroin, and a large amount of money at his residence. 

On Aug. 1, 2017, the parole officer, along with other law enforcement officers, conducted a parole search of Holloway’s residence, where they recovered a Masterpiece Arms 9 mm firearm with an obliterated serial number, loaded with 30 rounds of ammunition, under Holloway’s bed. They also found a barrel extension that fit the gun. Also recovered from Holloway’s bedroom was more than $14,000 in cash and more than 400 bricks of heroin from Holloway’s basement.

The count of possession of a firearm in furtherance of a drug trafficking crime to which Holloway pleaded guilty carries a statutory mandatory minimum term of five years in prison, a maximum of life in prison, and a maximum fine of $250,000. If accepted by the court at the time of sentencing, Holloway’s plea agreement would result in Holloway serving a stipulated total sentence between eight and 10 years in prison. Sentencing is scheduled for March 23, 2021.

U.S. Attorney Carpenito credited special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives under the direction of Special Agent in Charge Charlie J. Patterson in Newark; the New Jersey State Parole Board, under the direction of Chairman Samuel J. Plumeri Jr.; and the New Jersey State Police, under the direction of Col. Patrick J. Callahan, with the investigation leading to today’s plea. 

The government is represented by Assistant U.S. Attorneys Elisa T. Wiygul and Michelle S. Gasparian of the U.S. Attorney’s Office’s Criminal Division in Trenton.

NEWARK, N.J. – A former City of Newark official and officer of the Newark Community Economic Development Corporation (NCEDC) and two business owners were charged today for their roles in a bribery scheme, U.S. Attorney Craig Carpenito announced.

Carmelo G. Garcia, 45, of Hoboken, New Jersey; Frank Valvano Jr., 52, of Florham Park, New Jersey; and Irwin Sablosky, 60, of Springfield, New Jersey, are each charged by complaint with one count of conspiracy to commit bribery in connection with the business and transactions of a federally funded local government and organization. Garcia was a high-level Newark official, and prior to that, an executive officer of the NCEDC (now known as “Invest Newark”). Valvano and Sablosky are co-owners of a New Jersey-based pawnbroker and jewelry business. The defendants will appear in federal court on a date to be determined

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

From 2017 through April 2019, Garcia sought and received significant monetary payments and other benefits from Valvano, Sablosky, and others in exchange for Garcia’s use of his official positions and influence to assist Valvano and Sablosky with securing redevelopment agreements (RDAs) with the City of Newark to purchase and acquire various city-owned properties for redevelopment, including obtaining preliminary designated developer status, and to ensure that Garcia did not act against their interests. In addition to money, Garcia also received jewelry from the pawnbroker and jewelry business that Valvano and Sablosky co-own.

Phone records and text messages obtained by law enforcement document extensive communications among Garcia, Valvano, Sablosky, and others about the bribery scheme, including text messages in which Garcia arranged to personally collect cash provided by Valvano and Sablosky. In one instance, in June 2018, Garcia, then acting deputy mayor and director of the city’s Department of Economic and Housing Development (EHD Department), received an envelope containing $25,000 in cash, supplied by Valvano through an intermediary, in the restroom of a New Jersey restaurant. Text messages obtained by law enforcement show that Garcia used his personal cellular phone to coordinate the location and timing of the meeting. Approximately five days later, the EHD Department issued letters granting preliminary designated developer status for several properties to two limited liability companies controlled by Valvano and Sablosky. Garcia, whose name and official title were also prominently displayed on the letterhead, was copied on both letters.

In text messages, Valvano and Sablosky discussed additional payments of money and jewelry the two had made to Garcia, and also to an associate of Garcia (Individual 1), as well as their ongoing efforts to obtain RDAs with the city to acquire and redevelop additional properties. For instance, on March 31, 2019, Valvano texted Sablosky to complain that Garcia’s associate, who sometimes served as an intermediary between Garcia and Sablosky and Valvano, was “already looking for [more] money.” After observing that “We’ve done nothing but spend tons of money and give away jewelry,” Sablosky noted that “Carmelo [Garcia] wants more too. We can’t afford it . . . We’re a [expletive] money well for these guys to keep coming back to.”

On April 13, 2019, Sablosky also sent text messages to Valvano regarding a meeting he had with Garcia the previous day and his giving Garcia an additional payment of $5,000. Sablosky noted that Garcia had “showed up [at] 5pm last night” to discuss another “RDA” he and Valvano were attempting to obtain from the city. When Valvano asked whether there was “Any mention of $$,” Sablosky responded, “He [Garcia] didn’t just come to visit!! Lol. He got another 5,” referencing the $5,000 payment. Sablosky also told Valvano, “When you get back we have to add everything and sit down with him [Garcia]. I want to get these RDAs through before we start rocking the boat.”

The count of conspiracy to commit bribery carries a maximum penalty of five years in prison and a maximum fine of $250,000, or twice the gross pecuniary gain or loss from the offense.

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; and special agents of the U.S. Department of Housing and Urban Development, Office of Inspector General, under the direction of Special Agent in Charge Christina Scaringi, with the investigation leading to the charges.

The government is represented by Assistant U.S. Attorneys Jeffrey J. Manis, Elaine K. Lou, and Jihee G. Suh of the U.S. Attorney’s Office’s Special Prosecutions Division.

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

NEWARK, N.J. – A Florida man today admitted his role in using his company to defraud the Medicare Program in connection with fraudulent orders for genetic tests, Attorney for the United States Rachael A. Honig announced.

Edward B. Kostishion, 60, of Lakeland, Florida, pleaded guilty by videoconference before U.S. District Judge Brian R. Martinotti to a superseding information charging him with two counts of conspiracy to commit an offense against the United States in connection with schemes to commit health care fraud and violate the Anti-Kickback Statute. Kostishion and five co-defendants were previously charged by indictment in September 2019 in connection with these conspiracies.

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

Kostishion and certain conspirators operated Ark Laboratory Network LLC (Ark), a company that purported to operate a network of laboratories that facilitated genetic testing. Ark partnered with Privy Health Inc., a company that another conspirator operated, and another company to acquire DNA samples and Medicare information from hundreds of patients through various methods, including offering $75 gift cards to patients, all without the involvement of a treating health care professional. Matthew S. Ellis, a physician based in Gainesville, Florida, and a co-defendant charged in the indictment, served as the ordering physician who authorized genetic testing for hundreds of patients across the country that he never saw, examined, or treated. These included patients from New Jersey and various other states where Ellis was not licensed to practice medicine. Through this process, Ellis, Kostishion, and other conspirators submitted and caused to be submitted fraudulent orders for genetic tests to numerous clinical laboratories. These orders falsely certified that Ellis was the patients’ treating physician and, in some cases, falsely indicated that a patient had a personal or family history of cancer. In 2018 alone, Medicare paid clinical laboratories at least $4.6 million for genetic tests that Ellis ordered as part of this scheme.

In addition, Kostishion and certain conspirators entered into kickback agreements with certain clinical laboratories under which the laboratories paid Ark bribes in exchange for delivering DNA samples and orders for genetic tests. Among other things, Ark concealed these kickback arrangements through issuing sham invoices to laboratories that purportedly reflected services provided at an hourly rate even though the parties had already agreed upon the bribe amount, which was based on the revenue the laboratories received from Medicare or an amount paid for each DNA sample. In 2018, the clinical laboratories paid Ark at least $1.8 million in bribes. 

Each conspiracy count carries a maximum penalty of five years in prison and a fine of $250,000, or twice the gross gain or loss from the offense. Kostishion’s sentencing is scheduled for April 1, 2021.

Co-defendants Kacey C. Plaisance, of Altamonte Springs, Florida, and Kyle D. McLean, of Arlington Heights, Illinois, previously pleaded guilty. Plaisance is scheduled to be sentenced on March 15, 2021. McLean is scheduled to be sentenced on April 12, 2021.

Attorney for the United States Honig credited the U.S. Department of Health and Human Services, Office of Inspector General, under the direction of Special Agent in Charge Scott J. Lampert; and special agents of the U.S. Attorney’s Office for the District of New Jersey, under the direction of Supervisory Special Agent Thomas Mahoney, with the investigation leading to today’s guilty plea.

The government is represented by Assistant U.S. Attorney Bernard J. Cooney, Acting Chief of the Opioid Abuse Prevention & Enforcement Unit. 

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

NEWARK, N.J. – A Union County, New Jersey, man was sentenced today to 88 months in prison for distributing and possessing images of child sexual abuse, U.S. Attorney Craig Carpenito announced. 

Nicholas Pecil, 33, of Rahway, New Jersey, previously pleaded guilty before U.S. District Judge John Michael Vazquez in Newark federal court to a superseding indictment charging him with one count of distributing child pornography and one count of possessing child pornography. Judge Vazquez imposed the sentence by videoconference today.

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

Pecil used a peer-to-peer file-sharing program to download and share videos and images of child sexual abuse. In February 2017, law enforcement downloaded 11 videos of child sexual abuse from Pecil’s computer. After executing a search warrant at Pecil’s home in May 2017, agents located more than 1,000 videos and over 6,000 images of child sexual abuse on Pecil’s computers. Pecil admitted that he used the peer-to-peer file-sharing program to make images and videos of child sexual abuse available for others to download from his computer.

In addition to the prison term, Judge Vazquez sentenced Pecil to 15 years of supervised release and ordered him to register as a sex offender.

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 in Newark with the investigation leading to today’s sentencing.

The government is represented by Assistant U.S. Attorney Anthony P. Torntore of the U.S. Attorney’s Office’s Cybercrime Unit.

NEWARK, N.J. – A Staten Island, New York, man was sentenced today to 96 months in prison for robbing a New Jersey business owner in February 2019, defrauding eight New Jersey businesses from July 2016 through January 2019, and defrauding and stealing the identities of three women, U.S. Attorney Craig Carpenito announced. 

Raymond Scura, 31, previously pleaded guilty before U.S. District Judge Claire C. Cecchi in Newark federal court to an information charging him with wire fraud affecting a financial institution, aggravated identity theft, and Hobbs Act robbery. Judge Cecchi imposed the sentence by videoconference today.

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

Scura used bad checks and stolen credit cards to obtain luxurious goods and services, such as a country club membership, limousine services, luxury hotel expenses, exotic car rentals, and a Rolex watch, in order to appear wealthy and obtain the confidence of his victims, who were usually women. Once he convinced his victims of his purported wealth, he would then steal their identities and credit cards to make additional purchases. As a result of his fraud and aggravated identity theft offenses, Scura caused losses to individuals and businesses in excess of $250,000

In February 2019, Scura was a customer of an internet-based business owned and operated by a New Jersey man. To pay for the services of the business, Scura wrote at least one fraudulent check to the victim. When the victim insisted on cash payment, Scura drove with the business owner to a bank, where Scura brandished a gun, threatened to kill the victim, and demanded that the victim deposit a fraudulent check for $10,000 into the victim’s bank account and then withdraw $10,000. The victim did as Scura directed and then gave Scura the $10,000.

In addition to the prison term, Judge Cecchi sentenced Scura to three years of supervised release and ordered him to pay restitution to the numerous victims totaling $166,505.

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 Belleville Police Department, under the direction of Chief of Police Mark Minichini, with the investigation leading to today’s sentencing.  He also thanked the Summit Police Department, the Union County Prosecutor’s Office, the Burlington County Prosecutor’s Office, and the Evesham Police Department for their assistance.

The government is represented by Assistant U.S. Attorney Christopher Amore of the Government Fraud Unit and Assistant U.S. Attorney Elaine Lou of the U.S. Attorney’s Office in Newark.

NEWARK, N.J. – An Orange County, New York, man was sentenced today to 24 months in prison for allegedly orchestrating a wire fraud scheme that involved manipulating a business’ payroll service, U.S. Attorney Craig Carpenito announced.

Patrick Snoop, 35, of Monroe, New York, previously pleaded guilty before U.S. District Judge Esther Salas to an information charging him with one count of wire fraud. U.S. District Judge Brian Martinotti imposed the sentence today in Newark federal court.

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

From November 2015 through July 2019, Snoop served as an office manager and bookkeeper for a company based in Union, New Jersey. Beginning in March of 2016, Snoop used his position to fraudulently inflate his salary on several occasions by providing falsified information to a payroll company used by his employer. The unauthorized changes resulted in $494,373 in losses to the company.

In addition to the prison term, Judge Martinotti sentenced Snoop to three years of supervised release and ordered restitution of $494,373.

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

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

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

Joshua Darstek, 38, of Freehold, New Jersey, pleaded guilty by videoconference before U.S. District Judge John Michael Vazquez to a superseding 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 May 2014 and January 2016, Darstek worked as a sales representative on behalf of two compounding pharmacies and a marketing company – referred to in the superseding information as the “Compounding Companies.”  He marketed and sold compounded drugs to physicians, including pain, scar, and wound creams and certain supplements and vitamins. The Compounding Companies paid Darstek based on a percentage of the reimbursement payments they received from health care benefit programs for each prescription that he referred to the compounding pharmacies. Darstek participated in a conspiracy that recruited patients, many of whom had prescription drug coverage under the New Jersey School Employee’s Health Benefits Program, to submit medically unnecessary prescriptions for compounded drugs to the pharmacies. Darstek caused physicians to write prescriptions for individuals with whom they did not have any interaction for purposes of determining that a prescription for a compounded drug was medically necessary.

The conspiracy to commit health care fraud count carries a maximum penalty of 10 years in prison and a $250,000 fine, or twice the gain or loss from the offense. As part of his plea agreement, Darstek must forfeit $148,500 in criminal proceeds and pay restitution of at least $594,639. Sentencing is scheduled for March 23.

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 the Defense Criminal Investigative Service, under the direction of Acting Special Agent in Charge Patrick J. Hegarty, with the investigation leading to today’s plea.

The government is represented by Assistant U.S. Attorney Bernard J. Cooney, Acting Chief of the Opioid Abuse Prevention & Enforcement Unit.

CAMDEN, N.J. – A Camden County, New Jersey, man was indicted today for illegally possessing a handgun, U.S. Attorney Craig Carpenito announced.

Maurice Isler, 36, of Lindenwold, New Jersey, was charged by indictment with one count of being a previously convicted felon in possession of a handgun.

According to the indictment:

On April 10, 2020, a witness told a police officer that Isler was in possession of a firearm. When confronted by police, Isler ran, and was caught by two police officers. They arrested Isler and found a loaded handgun in his pocket. The handgun had previously been reported stolen. As a previously convicted felon, Isler is not permitted to possess a handgun under federal law.

The count of being a felon in possession of a firearm is punishable by a maximum penalty of 10 years in prison and a $250,000 fine.

U.S. Attorney Carpenito credited special agents of the ATF, under the direction of Special Agent in Charge Charlie J. Patterson, Newark Field Division, with the investigation leading to today’s charges. U.S. Attorney Carpenito also thanked the Camden County Police Department – Metro Division, under the direction of Chief Joseph D. Wysocki, for its assistance with the investigation.

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

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

NEWARK, N.J. – A former New Jersey resident today admitted participating in an investment scheme through which he fraudulently obtained $1.525 million from at least three families from 2017 through 2019, U.S. Attorney Craig Carpenito announced.

Matthew Benjamin, 53, formerly of Englewood, New Jersey, and now of New York, pleaded guilty by videoconference before U.S. District Judge Claire C. Cecchi to an information charging him with one count of wire fraud and one count of securities fraud. 

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

From May 2017 through August 2019, Benjamin falsely represented to at least three families that his company, Clear Solutions Group LLC, had lucrative contracts to purchase closeout or excess cosmetic inventory from Company A, which he would then resell at a mark-up to Company B. Benjamin told the victims that he had access to these closeout goods through his contacts in the cosmetics and fragrance industry, which he purportedly made through his work at his family’s cosmetic wholesale and distribution business prior to starting Clear Solutions Group. Benjamin induced the victims to provide him with money to purchase the inventory from Company A and promised significant profits in return. Instead of investing the money as he promised, Benjamin misappropriated the investor’s money for his own use and benefit.

Benjamin provided the victims with falsified documents, including fake purchase orders, invoices, promissory notes and bank records showing inflated assets of Clear Solutions Group. To lull victims and induce them to continue investing, Benjamin provided them with documents that purported to detail the investors’ profits.

Benjamin misrepresented to certain investors that portions of their profits on the investment contracts were being reinvested in additional deals to purchase and sell cosmetics, which in turn would generate more profits. From time to time, Benjamin made payments to the investors that were purportedly their profits on certain cosmetics contracts.

In reality, Benjamin misappropriated the investors’ money by making payments to other investors in Clear Solutions Group, which were characterized as those investors’ profits from the nonexistent cosmetic contracts, thereby enabling Benjamin to continue to perpetuate his fraudulent scheme; and by funding Benjamin’s and his family’s lifestyle, including paying for car and house rental payments, food, international travel, legal fees, technology equipment, and summer camp tuition for his family members.

The wire fraud counts are each punishable by a maximum of 20 years in prison and a fine of $250,000, or twice the gross amount of gain or loss from the offense, whichever is greater. The securities fraud count is punishable by a maximum of 20 years in prison and a fine of $5 million.  Sentencing is scheduled for March 24, 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 U.S. Securities and Exchange Commission’s New York Regional Office, under the direction of Director Richard R. Best, for its assistance. The SEC also filed a civil complaint based on the same conduct when Benjamin was arrested July 1, 2020; that complaint remains pending.

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

TRENTON, N.J. – A Florida man was sentenced today to 37 months in prison for laundering funds related to a $9 million business account takeover scheme with ties to Eastern Europe, U.S. Attorney Craig Carpenito announced.

Igor Buzyukov, 52, of Weston, Florida, previously pleaded guilty before U.S. District Judge Anne E. Thompson to an information charging him with conspiracy to commit money laundering. Judge Thompson imposed the sentence today in Trenton federal court.

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

Between February 2018 and July 2018, several clients of Company-1, a financial technology company headquartered in San Jose, California, fell victim to an account takeover scheme resulting in total losses exceeding $9 million.

The scheme generally involved an unidentified individual or individuals calling Company-1 and impersonating a representative of one of the victim companies. The impostor(s) would then request that an unauthorized bank account be added to the victims’ Company-1 accounts and be designated to receive payments from e-commerce customers.

The unauthorized bank accounts added to the victims’ Company-1 accounts were each controlled by Buzyukov under the name of a corporation registered to him in the State of Florida.  After monies were deposited to the unauthorized accounts, Buzyukov would transfer the funds to other accounts controlled by him. Buzyukov then wired the majority of the funds to several bank accounts held by various individuals in Russia, Turkey and Ukraine.

Buzyukov also admitted to creating fake invoices in the amounts of the wire transfers in order to make the transactions appear legitimate.

In addition to the prison term, Judge Thompson sentenced Buzyukov to three years of supervised release and ordered him to pay restitution of $160,000, his illegal proceeds from the scheme.

U.S. Attorney Carpenito credited special agents of the U.S. Secret Service, under the direction of Special Agent in Charge Mark McKevitt in Newark with the investigation leading to today’s sentencing. 

The government is represented by Assistant U.S. Attorney Anthony Torntore of the U.S. Attorney’s Cybercrime Unit.

CAMDEN, N.J. – A Camden County, New Jersey, man made his initial court appearance today on charges of possessing with intent to distribute cocaine, U.S. Attorney Craig Carpenito announced.

Joseph C. Long, 30, of Bellmawr, New Jersey, was charged by complaint with two counts of possession with intent to distribute cocaine. The defendant was previously arrested by state authorities. He appeared by videoconference today before U.S. Magistrate Judge Joel Schneider and was detained without bail.

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

On Jan. 15, 2020, law enforcement officers executed a search warrant at Long’s apartment. Long was seen jumping out of the second-floor bedroom window and was later apprehended. Inside the apartment, officers found powder cocaine, crack cocaine, packaging and distribution related items, and over $3,400 in cash.

Each drug charge carries a maximum potential penalty of 20 years in prison and a $1 million fine. 

U.S. Attorney Carpenito credited special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Newark Field Division, under the direction of Special Agent in Charge Charlie J. Patterson; 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. “Whip” Wilson; and the Bellmawr Police Department, under the direction of Chief William P. Walsh; with the investigation leading to the charges.

The government is represented by Assistant U.S. Attorney Kristen M. Harberg in Camden.

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

NEWARK, N.J. – A Bergen County, New Jersey, man was sentenced today to 63 months in prison for possessing with intent to distribute over 50 grams of methamphetamine, U.S. Attorney Craig Carpenito announced.

Jeff DelaCruz, 38, of North Arlington, New Jersey, previously pleaded guilty before U.S. District Judge Claire C. Cecchi to an information charging him with one count of possessing with intent to distribute more than 50 grams of methamphetamine. Judge Cecchi imposed the sentence today by videoconference.

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

On May 22, 2019, DelaCruz sold two “8-balls” (approximately 7 grams) of methamphetamine to an individual for approximately $350 in cash. Law enforcement agents observed DelaCruz leave his residence and meet with the individual to complete the sale. On June 3, 2019, DelaCruz agreed to sell three ounces of methamphetamine to an individual for approximately $3,000 in cash. On June 5, 2019, the special agents and officers of the U.S. Drug Enforcement Administration executed a search warrant at DelaCruz’ residence, where they recovered approximately 140 grams of methamphetamine. 

In addition to the prison term, Judge Cecchi sentenced DelaCruz to five years of supervised release.

U.S. Attorney Carpenito credited special agents of the DEA, under the direction of Special Agent in Charge Susan A. Gibson, with the investigation leading to today’s sentencing.

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. Attorney Patricia Astorga of the U.S. Attorney’s Office’ Opioids Unit in Newark.

TRENTON, N.J. – An Ocean County, New Jersey, man has been arrested on charges that he distributed and possessed images and videos depicting child sexual abuse, U.S. Attorney Craig Carpenito announced today.

Andrew Ramey, 34, of Brick, New Jersey, is charged by criminal complaint with one count of distribution of child pornography and one count of possession of child pornography. He was arrested Nov. 13, 2020, by special agents of the Department of Homeland Security, appeared by videoconference before U.S. Magistrate Judge Lois H. Goodman and was detained without bail.

According to documents filed in this case:

From March 13, 2020, through June 8, 2020, Ramey distributed material containing images of child sexual abuse and child pornography, via the BitTorrent Network, a publicly available online peer-to-peer (P2P) file-sharing network of linked computers. Users must download P2P software, which is widely available for free on the Internet. The software allows the user to place files into a designated “shared” folder on his or her hard drive, from which other BitTorrent users can then download those files directly to the “shared” folders of their own computers. Users can then search, select, and directly download, those files.

Law enforcement used investigative software to access the BitTorrent Network and downloaded video files containing child pornography from a device or devices assigned to an IP address at Ramey’s residence. On Nov. 13, 2020, law enforcement searched Ramey’s residence and found multiple images and videos containing images of child sexual abuse, as well as BitTorrent software, on a mobile phone belonging to Ramey.

In a prior federal prosecution in New Jersey in 2018, Ramey was convicted of one count of possession of child pornography. The distribution charge is punishable by a mandatory minimum penalty of 15 years in prison and a statutory maximum penalty of 40 years in prison, along with a fine of up to $250,000 or twice the gross pecuniary gain or loss caused by the offense, whichever is greater. The possession charge carries a mandatory minimum penalty of 10 years in prison and a statutory maximum penalty of 20 years in prison, along with a fine of $250,000 or twice the gross pecuniary gain or loss, whichever is greater.

U.S. Attorney Carpenito credited special agents of the Department of Homeland Security, Homeland Security Investigations Atlantic City, under the direction of Newark Special-Agent-in-Charge Jason J. Molina; detectives of the Ocean County Prosecutor’s Office, under the direction of Prosecutor Bradley D. Billhimer; the Brick Police Department, under the direction of Chief James Riccio; and the Mount Laurel Police Department, under the direction of Chief Stephen Riedener, with the investigation leading to today’s arrest.

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

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

NEWARK, N.J. – An Ohio man who was out on bail for allegedly committing a bank robbery in the Chicago area and who is charged in New Jersey with seven bank robberies or attempted bank robberies will make his initial court appearance by videoconference today, U.S. Attorney Craig Carpenito announced.

Tyler O’Toole, 23, of Cleveland, Ohio, was arrested in Queens, New York, on November 14, 2020. He is charged by complaint sworn out in the District of New Jersey on Nov. 4, 2020, with five counts of bank robbery and two counts of attempted bank robbery and is scheduled to have his initial appearance by videoconference this afternoon before U.S. Magistrate Judge Joseph A. Dickson.

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

O’Toole was arrested in Glenview, Illinois, on Aug. 20, 2020, and charged in federal court in the Northern District of Illinois with bank robbery. O’Toole was released on bail and placed on home detention with electronic location monitoring. 

On Sept. 24, 2020, O’Toole removed his monitoring device, stole his mother’s blue 2018 Hyundai Elantra, and drove away. He later robbed, or attempted to rob, the following New Jersey banks:

Date

Bank

Location

Oct. 8, 2020

PNC Bank

Morris Plains, New Jersey

Oct. 8, 2020

PNC Bank*

Pompton Plains, New Jersey

Oct. 22, 2020

Chase Bank

Aberdeen, New Jersey

Oct. 22, 2020

Bank of America

East Windsor, New Jersey

Oct. 27, 2020

Chase Bank

Lawrence Township, New Jersey

Oct. 27, 2020

Citizens Bank

Mount Holly, New Jersey

Oct. 30, 2020

Citizens Bank*

Runnemede, New Jersey

*attempted bank robbery

At each bank, O’Toole presented a note demanding cash from bank tellers. For example, during the Oct. 27, 2020, robbery of the Chase Bank in Lawrence Township, O’Toole handed the teller a manila envelope which stated:

• This is a robbery. Comply and Nobody gets hurt.
• Give me 20’s 50’s 100’s
• NO Trackers or Ink Packs
• Put Money in THIS Envelope
• Be fast, Act Normal

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

U.S. Attorney Carpenito credited special agents of the FBI’s Violent Crimes/Interstate Theft Task Force, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark, with the investigation leading to the charges. He also thanked the FBI’s Westchester, County, New York Safe Streets Task Force; the Camden County, Monmouth County and Morris County prosecutor’s offices; and the Morris Plains Boro, Pompton Plains, Aberdeen Township, East Windsor Township, Lawrence Township, Mount Holly Township, Runnemede Borough, Medford, and Gloucester Township police departments for their assistance.

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

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

NEWARK, N.J. – A Mexican national today admitted transporting approximately two kilograms of fentanyl into New Jersey for distribution, U.S. Attorney Craig Carpenito announced.

Adrian Vargas Arroyo, 31, pleaded guilty by videoconference before U.S. District Judge Brian R. Martinotti to an indictment charging him with one count of possession with intent to distribute over 400 grams of fentanyl.

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

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

The distribution and possession with intent to distribute charge to which Vargas Arroyo pleaded guilty carries a mandatory minimum penalty of 10 years in prison, a maximum of life in prison, and a $10 million fine. Sentencing is scheduled for March 29, 2021.

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 today’s guilty plea.

The government is represented by Assistant U.S. Attorney Shawn Barnes of the U.S. Attorney’s Office Organized Crime Drug Enforcement Task Force/Narcotics Unit.

TRENTON, N.J. – An Atlantic County, New Jersey, man is scheduled to make his initial appearance today after being charged with possessing and distributing images of child sexual abuse, U.S. Attorney Craig Carpenito announced.

Stephen Tisch, 36, of Minotola, New Jersey, is charged by indictment with one count of distribution of child pornography and one count of possession of child pornography. He was arrested by FBI agents today and is expected to appear by videoconference today before U.S. Magistrate Judge Lois H. Goodman.

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

A law enforcement investigation revealed that Tisch, living in Ocean County at the time, and who previously had been convicted of child pornography offenses, had distributed images of child sexual abuse over an online social media chat forum. A search of Tisch’s residence found multiple images depicting the sexual exploitation of children on Tisch’s mobile phone.

Tisch was previously convicted of endangering the welfare of a child/possession of child pornography in Ocean County in 2014. The charge of possession of child pornography, for a repeat offender, carries a mandatory minimum of 10 years in prison, a maximum of 20 years in prison, and a $250,000 fine. The charge of distribution of child pornography, for a repeat offender, carries a mandatory minimum of 15 years in prison, a maximum of 40 years in prison, and a $250,000 fine.

U.S. Attorney Craig Carpenito credited special agents with FBI, under the direction of Special Agent in Charge George M. Crouch Jr., New Jersey Regional Forensics Computer Laboratory, under the direction of Supervisory Special Agent Steven J. Newman, and the Ocean County Prosecutor’s Office, under the direction of Prosecutor Bradley D. Billhimer, with the investigation leading to today’s charges.

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

The charges and allegations against the defendant are merely accusations and he is presumed innocent unless and until proven guilty.

NEWARK, N.J. – An Essex County, New Jersey, man who is a previously convicted felon was sentenced today to 75 months in prison for possessing a firearm and ammunition in connection with an incident in which he shot another individual, U.S. Attorney Craig Carpenito announced.

Andre Shoulars, 28, of Newark, previously pleaded guilty before U.S. District Judge Esther Salas to an indictment charging him with one count of possession of a firearm and ammunition by a convicted felon. U.S. District Judge Brian R. Martinotti imposed the sentence by videoconference today.

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

On Nov. 4, 2018, at approximately 2:30 p.m., the victim was in the area of 340 Hawthorne Avenue in Newark, speaking with another individual. Shoulars approached the victim, pulled out a semiautomatic handgun, and began firing several shots at the victim. Although the victim was able to run away as Shoulars fired the handgun, the victim was hit in the foot with one .40 caliber bullet fired by Shoulars. The victim was treated at a hospital for the bullet wound. 

Newark police officers responded to the scene of the shooting and recovered five .40 caliber shell casings from the street. Officers also recovered videotapes from several surveillance cameras which were stationed in the area of the shooting. These videotapes showed Shoulars walking around in the area just before the shooting, and also showed Shoulars shooting at the victim and then running away.     

In addition to the prison term, Judge Martinotti sentenced Shoulars 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 .

U.S. Attorney Carpenito credited the U.S. Marshals Service, under the direction of U.S. Marshal Juan Mattos Jr., and the Newark Police Department, under the direction of Public Safety Director Anthony F. Ambrose, with the investigation leading to today’s guilty plea.

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

NEWARK, N.J. – The owner of a group of related durable medical equipment (DME) companies today admitted his role in a conspiracy to pay kickbacks in exchange for durable medical equipment, Attorney for the United States Rachael A. Honig announced.

Albert Davydov, 28, of Rego Park, New York, pleaded guilty by videoconference before U.S. District Judge Kevin McNulty to an indictment charging him with conspiring to violate the Anti-Kickback statute.

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

Davydov, the owner of nine DME companies, participated in a scheme to pay kickbacks in exchange for doctors’ orders for medically unnecessary orthotic braces. Once Davydov and his conspirators received the completed doctor’s orders, they billed Medicare and other federal and private health care benefit programs for the braces. Davydov concealed his ownership of the DME companies by falsely reporting to Medicare that various straw owners owned the companies. 

As part of his plea agreement, Davydov agreed that the improper benefit conferred was over $16 million for the charged conspiracy to violate the federal Anti-Kickback statute. The conspiracy charge to which Davydov pleaded guilty carries a maximum penalty of five years in prison and a fine of $250,000, or twice the gross grain or loss from the offense, whichever is greatest. Sentencing is scheduled for March 25, 2021.

Attorney for the United States Honig credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark; the Department of Health and Human Services-Office of Inspector General, under the direction of Special Agent in Charge Scott J. Lampert; and the U.S. Department of Veterans Affairs Office of Inspector General, under the direction of Special Agent in Charge Christopher F. Algieri with the investigation leading to today’s plea.

The government is represented by Assistant U.S. Attorney J. Stephen Ferketic of the Opioid Abuse Prevention & Enforcement Unit.

NEWARK, N.J. – Attorney General William P. Barr has announced the recipients for the 68th Annual Attorney General’s Awards, recognizing Department of Justice employees and partners for extraordinary contributions to the enforcement of our nation’s laws.

Among the honorees this year is Assistant U.S. Attorney Mary E. Toscano, Deputy Chief of the Criminal Division for the U.S. Attorney’s Office-District of New Jersey (USAO-DNJ). AUSA Toscano is one of 240 DOJ employees who received awards, while 27 non-department individuals are also being honored for their work. This year, due to coronavirus restrictions, Attorney General Barr is honoring recipients virtually.

“I am honored to recognize the recipients of this year’s Attorney General’s Awards, whose tireless work and steadfast dedication have proven critical to enforcing the rule of law and protecting all Americans,” Attorney General Barr said. “Those honored today have demonstrated exceptional efforts and made tremendous personal sacrifices throughout their time working at the Department of Justice, and for that, I am truly thankful.”

AUSA Toscano was one of two winners of the Attorney General’s Award for Excellence in Management, which recognizes outstanding administrative or managerial achievements that have significantly improved operations, productivity, or reduced costs.

In August 2017, the USAO-DNJ initiated a Violent Crime Initiative for the City of Newark in light of a serious and still-developing violent crime problem. AUSA Toscano, then the Chief of the Organized Crime/Gangs Unit, was assigned to get the VCI off the ground and manage and supervise it. She rapidly put together a federal, state and local partnership led by herself; the Essex County Prosecutor’s Office; Newark’s Department of Public Safety; and the FBI, Bureau of Alcohol, Tobacco, Firearms and Explosives, and Drug Enforcement Administration, with the goal of 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. 

AUSA Toscano has led the Newark VCI for over three years, during which Newark has seen a sharp decrease in overall crime and violent crime. Between 2017 and 2018, Newark saw a 30 percent reduction in the number of shooting victim. In 2019, the number of shooting victims and shooting incidents declined another 39 percent compared to 2018. In that same year, the number of murders in Newark reached its lowest level in nearly six decades.

“These successes simply would not have been possible without Ms. Toscano’s close management and careful direction,” U.S. Attorney Craig Carpenito said. “The Newark VCI has not only improved community safety, but has strengthened the relationships among federal, state, county and city agencies. As a result of the trust developed among the participants, the Newark VCI has enjoyed not only success with respect to reducing violence, but also in improving relationships among the various stakeholders. Ms. Toscano’s management is key to this success as well.”

For her work on the Newark VCI, AUSA Toscano was honored in October 2019 with a Proclamation from the City of Newark, recognizing her considerable contributions to public safety in Newark. Mayor Ras Baraka’s proclamation stated that the VCI “has had a dramatic impact on crime in Newark,” and credited AUSA Toscano for her work “to make Newark a safer, more empowered, and more equitable City.”

In 2018, U.S. Attorney Carpenito asked Ms. Toscano to stand up a second VCI, this one focusing on Jersey City, New Jersey, which operates in much the same fashion. Ms. Toscano has managed and supervised both VCIs concurrently for over a year – in addition to her other duties as Deputy Chief of the Criminal Division. The results in Jersey City have been equally dramatic.  Violent crime was down 30 percent in Jersey City in 2019, compared to 2018. The goal of the Mayor of Jersey City entering 2019 had been to obtain a 10 percent reduction; the VCI helped far exceed this goal.

AUSA Toscano has been a key advisor in helping her colleagues to establish more recent VCIs in Trenton, Camden, and Paterson, New Jersey. She has trained local police departments in these cities on the operation of the VCI model and has been invaluable as a resource to the AUSAs who are getting these VCIs off the ground.  Her management has been critical to the USAO-DNJ’s efforts to combat violent crime across the entire State of New Jersey.

AUSA Toscano joined the DOJ in 2007 through the DOJ Honors Program, as a Trial Attorney in the Narcotics & Dangerous Drugs Section. She first joined the USAO-DNJ as a Special Assistant U.S. Attorney, before being hired as an AUSA in 2012. She was promoted to Deputy Chief of the General Crimes Unit in 2015; became the Chief of that Unit in 2016; and later became the Chief of the OC/Gangs Unit. She has served as Deputy Chief of the Criminal Division since March 2018. In that capacity, she supervises the OCDETF/Narcotics, OC/Gangs, and Violent Crimes Units, in addition to managing the VCIs in Newark and Jersey City.

The year 2020 marks the 150th anniversary of the Department of Justice.  Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.

NEWARK, N.J. – An Essex County, New Jersey, man today admitted robbing five banks between October 2018 and January 2019, U.S. Attorney Craig Carpenito announced.

Myron Anderson, 40, of Newark, pleaded guilty before U.S. District Judge Kevin McNulty in Newark federal court to a superseding information charging him with five counts of bank robbery and two counts of Hobbs Act robbery.

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

Anderson admitted robbing the following banks:

 

Bank

Location

Date

Bank of America

Florham Park, New Jersey

Oct. 1, 2018

TD Bank

Hackensack, New Jersey

Nov. 13, 2018

Provident Bank

Bridgewater, New Jersey

Nov. 14, 2018

Chase Bank

Nanuet, New York

Nov. 15, 2018

TD Bank

Franklin, New Jersey

Jan. 14, 2019

In each of the bank robberies, Anderson walked into the banks with a hat pulled down closely over his eyes to shield his face from view and presented the teller with a note demanding money be placed in an envelope. Anderson intimidated the tellers, who, fearing for their safety, complied and handed Anderson money. In each instance, Anderson took evasive actions in travelling to and from the banks so as not to get caught. 

Each count of bank robbery in which Anderson is charged carries a maximum punishment of 20 years in prison and a $250,000 fine. Sentencing is scheduled for March 25, 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 Florham Park, Hackensack, Bridgewater, and Franklin police departments in New Jersey and the Clarkstown, New York, police department. 

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

TRENTON, N.J. – A Michigan man today admitted his role in a large-scale conspiracy to commit bank fraud in several states, including New Jersey, New York, Pennsylvania, Maryland, Virginia, and Michigan, over the course of two years, U.S. Attorney Craig Carpenito announced today.

Rana Sharif, 36, of Dearborn Heights, Michigan, pleaded guilty by videoconference before Chief U.S. District Judge Freda L. Wolfson to an information charging him with one count of conspiracy to commit bank fraud.

On Nov. 10, 2020, co-defendant Ali Abbas, 38, of Middlesex County, New Jersey, pleaded guilty by videoconference before Judge Wolfson to a separate information that also charged him with conspiracy to commit bank fraud.

Sharif, Abbas and five co-defendants – Awaise Dar, Shamsher Farooq, Naveed Arif, Habib Majid and Erm Ayaz – were charged by complaint in July 2020 in connection with the scheme.

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

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

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

During its investigation, law enforcement identified approximately 200 bank accounts and 75 merchant credit card processing accounts used to facilitate the conspiracy’s fraudulent schemes. Sharif, Ali, and other conspirators’ unlawful activities attempted to cause a $10 million loss on financial institutions and did in fact caused a loss of approximately $3.5 million.

The conspiracy charges to which Sharif and Abbas pleaded guilty carry a maximum potential penalty of 30 years in prison, a fine of $1 million or twice the gross pecuniary gain to the defendants or twice the gross pecuniary loss to others, whichever is greater. Sharif’s sentencing is scheduled for March 15, 2021. Abbas’ sentencing is scheduled for March 18, 2021.

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

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

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

CAMDEN, N.J. – A member of a Camden drug-trafficking organization today admitted conspiring to distribute heroin, U.S. Attorney Craig Carpenito announced.

Jose Agron, 26, of Camden, pleaded guilty by videoconference before U.S. District Judge Renée Marie Bumb to an information charging him with one count of conspiracy to distribute and possess with intent to distribute at least one kilogram of heroin.

Fourteen other members of the drug-trafficking conspiracy based in the 500 block of Pine Street in Camden – 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, and Meylin Troncoso – previously have pleaded guilty in this case. The charges against three other defendants remain pending.

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

An investigation by 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 of the Camden drug-trafficking organization. Members of the drug-trafficking organization sold heroin, crack cocaine, cocaine, and fentanyl in and around Camden.

The count to which Agron pleaded guilty carries a mandatory penalty of 10 years in prison, a maximum potential penalty of a lifetime in prison, and a $10 million fine. Sentencing is scheduled for March 15, 2021.

U.S. Attorney Carpenito 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 in Philadelphia; the Camden County Police Department, under the direction of Chief Joseph Wysocki; 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.

For the defendants whose charges remain pending, the charges and allegations are merely accusations, and they are presumed innocent unless and until proven guilty.

NEWARK, N.J. – A New York man today admitted to knowingly distributing and selling to individuals throughout the United States an unregistered pesticide imported from Nigeria, U.S Attorney Craig Carpenito, announced.

Jude Chukwuebuka Amadike, 62, of Elmont, New York, pleaded guilty before U.S. Magistrate Judge Joseph A. Dickson in Newark federal court to an information charging him with one count of knowingly distributing or selling an unregistered pesticide in violation of the Federal Insecticide, Fungicide and Rodenticide Act (FIFRA).

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

FIFRA provides for federal regulation of pesticide distribution, sale, and use to ensure that pesticides sold in the United States are safe, effective, and bear labeling containing true and accurate information. The Environmental Protection Agency (EPA) has responsibility under FIFRA to regulate the manufacture, labeling, and distribution of all pesticides shipped or received in interstate commerce. All pesticides must be registered with the EPA before the pesticide can be sold or distributed, and no person may distribute or sell a pesticide that has not been registered with the EPA. 

From Sept. 15, 2016, through Nov. 14, 2018, Amadike sold an unregistered pesticide called Sniper DDVP on Amazon and eBay to customers in at least 22 states, including New Jersey. The investigation into these sales revealed that the defendant procured this pesticide by importing it from a Nigerian supplier. One such purchase in December 2017 revealed an import of approximately 798 pounds of Sniper DDVP. 

On Nov.14, 2018, law enforcement executed a search warrant at the Amadike’s home and recovered 1,728 bottles of the unregistered pesticide. Laboratory testing of samples taken from these bottles revealed each sampled bottle to contain the chemical dichlorvos, which has been classified by EPA as a probable human carcinogen.

The illegal sale of an unregistered pesticide carries a statutory maximum prison sentence of one year and a fine of up to $25,000. Sentencing is scheduled for March 16, 2021.  

U.S. Attorney Carpenito credited special agents of the U.S. Environmental Protection Agency, Criminal Investigation Division, under the direction of Special Agent in Charge Tyler C. Amon; 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 today’s guilty plea.

The government is represented by Special Assistant U.S. Attorney Jason P. Garelick of the U.S. Attorney's Government Fraud Unit in Newark.

NEWARK, N.J. – An Essex County, New Jersey man appeared before a federal judge today on charges that he produced and possessed images of child sexual abuse, U.S. Attorney Craig Carpenito announced.

Antonio Del Prado, 59, of Millburn, New Jersey, is charged by complaint with one count of production of child pornography and two counts of possession of child pornography. He appeared by videoconference before U.S. Magistrate Judge Edward S. Kiel and was detained without bail.

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

In October 2020, law enforcement learned that Del Prado had uploaded 56 images and 18 videos of suspected child sexual abuse to an internet-based cloud storage system. Del Prado had actively participated in the production of child sexual abuse by giving instructions to another individual who was live-streaming a video of themselves sexually assaulting a child. Law enforcement arrested Del Prado at his residence in Millburn this morning.

The charge of production of child pornography carries a mandatory minimum penalty of 15 years in prison, a maximum penalty of 30 years in prison, and fine of $250,000. The charge of possession of child pornography carries a maximum penalty of 10 years in prison, and 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 the charges.

The government is represented by Assistant U.S. Attorney Shawn Barnes of the U.S. Attorney’s Organized Crime/Drug Enforcement Task Force 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.

TRENTON, N.J. – A Pennsylvania woman today admitted participating in a conspiracy to receive bribes and kickbacks in exchange for ordering genetic tests, U.S. Attorney Craig Carpenito announced.

Kimberly Schmidt, 46, of Moscow, Pennsylvania, pleaded guilty by videoconference before U.S. District Judge Anne E. Thompson to an information charging her with one count of conspiring to violate the anti-kickback statute.

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

Schmidt worked for Lee Besen, a primary care physician with a medical office in Peckville, Pennsylvania. From December 2018, Besen and Schmidt accepted monthly cash kickbacks and bribes in exchange for collecting DNA samples from Medicare patients and sending them for genetic tests to clinical laboratories in New Jersey and Pennsylvania. The cash kickbacks typically ranged from $500 to $1,500, and Besen typically accepted the cash inside his medical office.

When Besen did not receive his kickback and bribe payments, the volume of genetic tests he ordered dipped. But when those payments flowed to Besen, he increased that volume because, as Besen said in a recorded conversation, “Greenbacks speak.” Besen enlisted Schmidt to help him with the scheme by preparing paperwork for the genetic tests. In turn, Schmidt received kickbacks and bribes that were calculated based on the volume of genetic tests that Besen generated.

Even as the ongoing COVID-19 pandemic substantially reduced in-patient visits, Besen continued participating in the scheme because, as he was recorded saying, he wanted “greenbacks” to pay for his “pool house.”

As a result of the scheme, Medicare paid approximately $350,374 for genetic tests generated from Besen’s medical practice.

Conspiracy to violate the federal anti-kickback statute is punishable by a maximum of five years in prison and a fine of $250,000, or twice the gross gain or loss derived from the offense, whichever is greater. Sentencing is scheduled for March 16, 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; IRS-Criminal Investigation, under the direction of Special Agent in Charge Michael Montanez in Newark; and U.S. Department of Health and Human Services, Office of Inspector General, Philadelphia Regional Office, under the direction of Special Agent in Charge Maureen Dixon, with the investigation leading to the charges. He also thanked the FBI Scranton Field Office, FBI Philadelphia Division, and the Pennsylvania Attorney General’s Office for their assistance.

The government is represented by Assistant U.S. Attorney Joshua L. Haber of the Health Care Fraud Unit and Executive Assistant U.S. Attorney Rahul Agarwal.

The charges against and allegations in the information pertaining to Besen are merely accusations, and he is presumed innocent unless and until proven guilty.

NEWARK, N.J. – A Bergen County, New Jersey, man was sentenced today to 120 months in prison for conspiring to launder more than $850,000, which he believed was derived from the sale of narcotics, U.S. Attorney Craig Carpenito announced.

Bobbie L. Henderson III, 36, previously pleaded guilty before U.S. District Judge Stanley R. Chesler in Newark federal court to an information charging him with one count of conspiracy to launder monetary instruments. Judge Chesler imposed the sentence today by videoconference.

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

From 2017 through May 23, 2019, Henderson conspired with others to launder the proceeds of narcotics distribution, with the intent to promote the distribution of narcotics. Henderson further admitted to possessing more than $850,000 in furtherance of this conspiracy. These funds were seized by law enforcement during the course of the investigation.

In addition to the prison term, Judge Chesler sentenced Henderson to three years of supervised release, fined him $20,000 and ordered forfeiture of $853,120.

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

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

CAMDEN, N.J. – A South Jersey doctor was charged in connection with his role in a longstanding billing fraud scheme, U.S. Attorney Craig Carpenito announced today.

Morris Antebi, 68, of Long Branch, New Jersey, is charged by complaint with three counts of health care fraud, wire fraud, and mail fraud for his role in the scheme. Antebi is scheduled to appear today by videoconference before U.S. Magistrate Judge Joel Schneider.

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

Antebi, a physician specializing in pain management and anesthesia, owned and operated a pain management clinic chain with locations throughout South Jersey. Antebi was a participating provider in Medicare, Medicaid, and several private insurance plans. Between approximately 2014 through 2020, Antebi billed over $24.6 million for services he purportedly provided, including billing more than $15.3 million to Medicaid and more than $8 million to Medicare. 

The investigation showed that Antebi engaged in various forms of billing fraud. For example, Antebi frequently billed Medicare, Medicaid, and private insurance companies on dates when travel records show he was overseas, including on trips to China, Israel, Turkey, the Dominican Republic, and across Europe, or when he was otherwise outside the State of New Jersey. Antebi billed approximately $230,700 to Medicaid, Medicare, and private insurance plans between November 2015 and January 2020 for services he purportedly rendered while he was traveling and not in the office. 

The investigation also showed that Antebi billed for excessive billings for one-day periods of time. For example, Antebi billed insurance plans for more than 24 hours’ worth of services in a one-day period of time on more than 900 occasions between 2014 and 2020.  Antebi also billed insurance companies for between 12 and 23.99 hours of purported services in a one-day period of time on more than 300 occasions. On certain occasions, law enforcement surveilled Antebi on days when he left the clinics early, but nevertheless billed as though he saw many patients on those days.

Despite these high billings, individuals interviewed during the investigation stated that Antebi commonly saw them for only very brief periods of time, and he often did not perform any medical exams or evaluations during their visits. Individuals also indicated that that there sometimes was no medical equipment or examination tables in the rooms at the clinics in which patients met with providers, and that patients sometimes met with providers on folding chairs in the hallway of the clinics.

The health care fraud count carries a maximum penalty of 10 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense.  The wire fraud and mail fraud counts each carry a maximum penalty 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 agents of the FBI’s Atlantic City Resident Agency Health Care Fraud Task Force, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark; the U.S. Department of Health and Human Services – Office of Inspector General, under the direction of Special Agent in Charge Scott J. Lampert, the U.S. Department of Labor – Office of Inspector General, New York Region, under the direction of Special Agent in Charge Michael C. Mikulka, the U.S. Drug Enforcement Administration, under the direction of Special Agent in Charge Susan A. Gibson in Newark, and IRS-Criminal Investigation, under the direction of Special Agent in Charge Michael Montanez in Newark with the investigation leading to the criminal complaint. U.S. Attorney Carpenito also thanked agents of FBI’s Headquarters Health Care Fraud Unit Data Analysis Response Team under the direction of Special Agent Greg Heeb in Washington, D.C. and officers of the Northfield Police Department for their assistance with the case.

The government is represented by Assistant U.S. Attorneys Christina O. Hud and Daniel A. Friedman of the U.S. Attorney’s Office in Camden.

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

Defense counsel: TBD

NEWARK, N.J. – An Essex County, New Jersey, man was sentenced today to 80 months in prison for three felony charges in connection with his possession of firearms and ammunition on three different days in April and May of 2019, U.S. Attorney Craig Carpenito announced.

Samaad Kelly, a/k/a “Spud,” 33, previously pleaded guilty before U.S. District Judge Esther Salas in Newark federal court to an information charging him with two counts of being a felon in possession of a firearm and one count of being a felon in possession of ammunition. U.S. District Judge Brian R. Martinotti imposed the sentence today by videoconference.

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

On April 24, 2019, officers from the Essex County Sheriff’s Office received information that Kelly was driving in Newark in a silver BMW with a temporary registration and was in possession of a firearm. The officers observed the BMW, which had a fictitious registration, and conducted a stop. Kelly, who was driving the BMW, could not provide the officers with any identification, registration, or proof of insurance. After conducting a search of the BMW, the officers located a Taurus semi-automatic 9 millimeter handgun in the glove box. The officers arrested Kelly, and Kelly remained in custody until May 2, 2019, when he was released on bail.

On May 7, 2019, officers from the Newark Police Department responded to a report of gun shots near Astor Street in Newark. Upon their arrival, they found one 9 millimeter discharged shell casing and one 9 millimeter round of live ammunition. The officers obtained video footage from surveillance cameras located nearby, which showed Kelly point and fire a black handgun in the direction of another individual.

On May 10, 2019, detectives from the Newark Police Department were patrolling a section of Newark in the vicinity of Astor and Brunswick streets. One of the detectives observed Kelly wearing a fanny pack that appeared to be heavily weighed down. When the detectives approached Kelly, he fled on foot. While running away from the detectives, Kelly unclipped the fanny pack and attempted to throw it over a fence. As he was throwing the fanny pack, he slipped and fell to the ground. The detectives apprehended Kelly, recovered the fanny pack, and found inside of it a Ruger 9 millimeter semi-automatic pistol, loaded with 10 rounds of ammunition. The detectives arrested Kelly.

In addition to the prison term, Judge Martinotti sentenced Kelly to 3 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 NCIS 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, under the direction of Special Agent in Charge Charlie J. Patterson, Newark Field Division, with the investigation leading to today’s sentencing. He 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 Sheriff Armando B. Fontoura, for their work on the case.

The government is represented by Assistant U.S. Attorney Christopher D. Amore of the Government Fraud Unit in Newark.

Defense counsel: Lisa M. Mack Esq., Assistant Federal Public Defender, Newark