District of New Jersey

NEWARK, N.J. – A Morris County tour company entered into a settlement agreement with the United States resolving allegations that the company violated the False Claims Act by applying for and receiving two loans from the Paycheck Protection Program (“PPP”) for which the company was not eligible, Senior Counsel Philip Lamparello announced today.

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

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

CIE Tours International Inc. (“CIE Tours”) applied for and received two PPP loans totaling $3,410,300 even though it was ineligible for the loans as an entity owned by the government of Ireland, and because it exceeded the employee size eligibility requirements. CIE Tours then sought and received forgiveness of the total amount of the loans. 

CIE Tours fully cooperated in the investigation and resolution of this matter. In accordance with the terms of the settlement CIE Tours agrees to pay the United States $4,428,985.04. The settlement resolves a lawsuit filed under the whistleblower provision of the False Claims Act, which permits private parties, called relators, to file suit on behalf of the United States for false claims and share in a portion of the government’s recovery. In this matter, Relator is receiving $428,985 as his share in the recovery.

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

The government is represented by Assistant U.S. Attorney David E. Dauenheimer of the Healthcare Fraud and Opioids Enforcement Unit in Newark.

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

The qui tam case is captioned US ex rel. TZAC, Inc., v. CIE TOURS INTERNATIONAL, 24-cv-009637 (D.N.J.).

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Counsel for CIE Tours: Reetuparna Dutta, Hodgson Russ, LLP, Buffalo, New York.

Relator’s counsel: David Abrams, Esq., New York, New York.

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

Nabeen Leigh Singha, 39, of West Orange, New Jersey, pleaded guilty before U.S. District Court Chief Judge Renée M. Bumb on December 11, 2025, in Camden federal court to a three-count Information charging him with: (1) production of child pornography, in violation of Title 18, United States Code, Sections 2551(a) and (e); (2)  receipt of child pornography, in violation of Title 18, United States Code, Sections 2252A(a)(2)(A) and (b)(1); and (3) possession of prepubescent child pornography, in violation of Title 18, United States Code, Sections 2252A(a)(5)(B) and (b)(2).

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

From July 2021 through March 2022, Singha exchanged sexually explicit messages with two minor victims and paid them to create sexually explicit videos and images of themselves to send to Singha over the internet.

During that time-period, Singha also communicated with an intermediary and paid that intermediary to send sexually explicit videos and images of four additional minor victims.

Law enforcement searched and seized Singha’s phone and found nearly 5,000 images and 620 videos depicting child pornography. These materials included depictions prepubescent minors under 12 years old.

The production charge carries a statutory mandatory minimum sentence of 15 years’ imprisonment, a statutory maximum sentence of 30 years’ imprisonment, and a statutory maximum fine equal to the greatest of (a) $250,000; (b) twice the gross amount of any pecuniary gain that any persons derived from the offense; or (c) twice the gross amount of any pecuniary loss sustained by any victims of the offense.

The receipt charge carries a statutory mandatory minimum sentence of 5 years’ imprisonment, a statutory maximum sentence of 20 years’ imprisonment, and a statutory maximum fine equal to the greatest of (a) $250,000; (b) twice the gross amount of any pecuniary gain that any persons derived from the offense; or (c) twice the gross amount of any pecuniary loss sustained by any victims of the offense.

The possession charge carries a statutory maximum sentence of 20 years’ imprisonment, and a statutory maximum fine equal to the greatest of (a) $250,000; (b) twice the gross amount of any pecuniary gain that any persons derived from the offense; or (c) twice the gross amount of any pecuniary loss sustained by any victims of the offense.

Senior Counsel Lamparello credited special agents and members of the Child Exploitation Group of Homeland Security Investigation, under the direction of Acting Special Agent in Charge Michael McCarthy, with the investigation leading to the guilty plea.

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

The government is represented by Assistant U.S. Attorney Jake A. Nasar of the Health Care Fraud and Opioid Enforcement Unit in Newark.

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Defense counsel: Jonathan F. Marshall, Esq., Freehold, NJ 

NEWARK, N.J. – A federal jury has convicted a Bergen County, New Jersey man for running a fentanyl trafficking ring involving kilograms of fentanyl, Senior Counsel Philip Lamparello announced.

Plinio Junior Pineda Lopez, 35, of Oakland, New Jersey was convicted following a four-day trial before U.S. District Judge Stanley R. Chesler in Newark federal court of conspiracy to distribute and possess with intent to distribute over 400 grams of fentanyl and possession with intent to distribute over 400 grams of fentanyl and over 500 grams of cocaine.

“This verdict sends a clear message to those who seek to profit by flooding our communities with fentanyl: law enforcement will find you, our Office will charge you, and you will be held fully accountable. Our responsibility is to our community.  No one should fear the loss of a loved one because a dealer seeks to make a quick buck.  Thanks to the hard work and dedication of our federal, state and local partners, the jury has delivered swift justice. Our Office will aggressively pursue anyone who seeks to distribute this poison, no matter where they hide or how sophisticated they believe their operation to be.”

- Senior Counsel Philip Lamparello

“This guilty verdict on all counts is a decisive victory in our ongoing efforts to combat the fentanyl crisis,” said HSI Newark Special Agent in Charge Michael S. McCarthy. “It reflects the unwavering commitment of Homeland Security Investigations and our law enforcement partners to protect the public and uphold the rule of law. Through coordinated action and relentless pursuit of justice, we have disrupted a major interstate fentanyl trafficking operation and prevented lethal substances from endangering communities across New Jersey.”

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

Lopez directed and conspired with others to distribute large quantities of fentanyl between Florida and New Jersey. Following an extensive investigation of Lopez’s drug activity in Jacksonville, Miami and Bergen County, law enforcement arrested Lopez on July 11, 2023, in Wallington, New Jersey when he attempted to conduct a narcotics transaction involving over one kilogram of fentanyl. Following his arrest, and pursuant to a court-authorized search warrant, law enforcement searched Lopez’s home and recovered an extensive quantity of fentanyl and cocaine that was hidden in air vents and appliances throughout his home. Through this investigation, law enforcement recovered a total of approximately nine kilograms of fentanyl and approximately one kilogram of cocaine.

The narcotics trafficking charges each carry a maximum potential penalty of life imprisonment and a fine of $10 million. Sentencing is scheduled for April 29, 2026, at 9:30 a.m.

Senior Counsel Lamparello credited special agents of the Department of Homeland Security, Homeland Security Investigations (HSI), under the direction of Special Agent in Charge Michael S. McCarthy in Newark; HSI Miami, HSI Jacksonville, Customs and Border Protection (CBP) Air and Marine Operations (AMO) and CBP Office of Field Operations (OFO), the Jacksonville Sheriff’s Office, Drug Enforcement Agency (DEA) New York Drug Enforcement Task Force, the Bergen County Prosecutor’s Office, the Oakland Police Department, and the Westwood Police Department, under the direction of Chief Michael Pontillo, with the investigation that led to the charges and conviction.

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

The government is represented by Assistant U.S. Attorney Jason Goldberg, Chief of the Narcotics and International Trafficking Unit, and Assistant U.S. Attorney Alison Thompson of the Organized Crime/Gang Unit in Newark.

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Defense counsel: Carol Dominguez, Esq. and Michael A. Thomas, Esq.

Today, following Attorney General Pamela Bondi's announcement that Alina Habba will serve as Senior Advisor to the Attorney General for United States Attorneys, Deputy Attorney General Todd Blanche announced the following personnel appointments and authorizations within the District of New Jersey:

• Philip Lamparello will serve as Senior Counsel and is authorized to supervise or conduct the work of the district’s Criminal Division and Special Prosecutions Division, including such work in the district’s branch offices;
• Jordan Fox will serve as Special Attorney and is authorized to supervise or conduct the work of the district’s Civil Division and Appellate Division, including such work in the district’s branch offices, along with any other matters arising within the district not specifically delegated herein; and
• Ari Fontecchio will serve as Executive Assistant United States Attorney and is authorized to supervise or conduct the work of the district’s Administrative Division, along with any other administrative matters arising within the district.

"The Department of Justice is committed to bringing in the best and brightest to carry out our mission," said Deputy Attorney General Todd Blanche. "I have full confidence in each of these exceptional attorneys and look forward to our continued collaboration as we make New Jersey and America safe again."

NEWARK, N.J. – A New Jersey doctor was arrested on November 4, 2025, for unlawfully prescribing Adderall, a Schedule II controlled substance, and Xanax, a Schedule IV controlled substance, Acting U.S. Attorney and Special Attorney Alina Habba announced.

David Holbrook, 70, of Bloomsbury, New Jersey was charged by Indictment with nine counts of unlawfully distributing and dispensing controlled substances, each in violation of Title 21, United States Code, Sections 841(a)(1) and (b)(1)(C). Holbrook appeared on November 4, 2025, for his initial appearance and arraignment in federal court before U.S. Magistrate Judge André M. Espinosa. The defendant was released on a $100,000 unsecured bond.

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

On nine occasions between or around January 2021 and September 2022, Holbrook, a licensed psychiatrist, prescribed Adderall and Xanax to multiple patients outside the usual course of professional practice and not for a legitimate medical purpose.  If convicted, Holbrook faces a statutory maximum sentence of twenty years in prison and a $1 million fine on each count.

Acting U.S. Attorney and Special Attorney Habba credited special agents, task force officers, and diversion investigators with the Drug Enforcement Administration (DEA) under the direction of Special Agent in Charge Cheryl Ortiz in Newark, New Jersey, with the investigation.

The government is represented by Assistant U.S. Attorney Jake A. Nasar of the Office’s Health Care Fraud and Opioid Enforcement Unit.                                                 

Victims with any information regarding Dr. David Holbrook may contact the DEA New Jersey Field Division at 571-362-3700.

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

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Defense counsel:         Jay Surgent, Esq.

TRENTON, N.J. – A Monmouth County man was sentenced to 63 months’ imprisonment for armed bank robbery, Acting U.S. Attorney and Special Attorney Alina Habba announced.

Jeffrey L. Kniffin, 51, of Wall Township, pleaded guilty before U.S. District Judge Zahid N. Quraishi in Trenton federal court on July 22, 2025, to a one-count Information charging him with armed bank robbery. U.S. District Judge Zahid N. Quraishi imposed the sentence on November 24, 2025 in Trenton federal court.

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

On October 23, 2024, Kniffin entered a bank in Wall Township, New Jersey armed with a loaded handgun, approached a bank teller, and demanded cash from the teller. After demanding the money, Kniffin removed the handgun from his pocket and displayed it towards the teller. During his interaction with the teller, Kniffin instructed multiple times, “Don’t do anything stupid.” Kniffin received approximately $27,072 in cash from the teller and then fled the bank. He was apprehended and arrested by law enforcement several minutes later. At the time of his arrest, law enforcement recovered from Kniffin and his immediate surroundings a loaded handgun and more than $25,000 in cash.

In addition to the prison term, Judge Quraishi sentenced Kniffin to three years of supervised release following Kniffin’s term of imprisonment, ordered forfeiture of Kniffin’s robbery proceeds and crime gun, and ordered restitution in the amount of $1,938.

Acting U.S. Attorney and Special Attorney Habba credited task force officers with the Federal Bureau of Investigation, under the direction of Special Agent in Charge Stefanie Roddy in Newark, with the investigation leading to the sentencing. She also thanked the Wall Township Police Department, under the direction of Chief Sean O’Halloran, and the Monmouth County Prosecutor’s Office, under the direction of Prosecutor Raymond S. Santiago, for their assistance in the investigation.

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

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Defense counsel: John M. Holliday, Esq.

NEWARK, N.J. – A Union County, New Jersey, man who was employed as a New Jersey high school teacher, was sentenced to 275 months in prison for producing child pornography, Acting U.S. Attorney and Special Attorney Alina Habba announced.

Michael Hamilton, 53, previously pleaded guilty before U.S. District Judge Christine P. O’Hearn to an Information charging him with one count of producing child pornography.  Judge O’Hearn imposed the sentence in Camden federal court.

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

Hamilton admitted to meeting a minor victim and engaging in sexual conduct with that victim, which Hamilton recorded on video. Law enforcement seized a copy of that video during the search of his home in October 2023. Hamilton also admitted to receiving and possessing sexually explicit messages, pictures, and videos of two other minor victims.

In addition to the prison term, Judge O’Hearn sentenced Hamilton to 10 years of supervised release, and to pay restation of $5,000 to a victim.

“There is no higher responsibility than safeguarding the welfare of our children. The defendant took advantage of children for his own sexual desires. We will continue to protect children and bring justice to sexual predators. I commend the Federal Bureau of Investigation, and our law enforcement partners for their critical work reaching this result.”

- Acting U.S. Attorney and Special Attorney Alina Habba

Acting U.S. Attorney Habba credited FBI Newark’s Child Exploitation and Human Trafficking Task Force, under the direction of Special Agent in Charge Stefanie Roddy, with the investigation.  Acting U.S. Attorney Habba also thanked the Springfield Police Department and the Union County Prosecutor’s Office.

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

The government is represented by Rebecca Sussman of the Narcotics and International Trafficking Unit and Robert Taj Moore of the Cybercrime Unit in Newark.

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Defense counsel: Randy Davenport, Esq.

CAMDEN, N.J. – Two New Jersey residents admitted participating in a multimillion dollar mortgage fraud scheme and one of the individuals also admitted fraudulently obtaining more than $1.8 million of federal Economic Injury Disaster Loans, Acting U.S. Attorney and Special Attorney Alina Habba announced.

Mendel Deutsch, 39, of Toms River, New Jersey, pleaded guilty on November 13, 2025, before U.S. District Judge Edward S. Kiel to one count of bank and wire fraud conspiracy and one count of wire fraud.  Joshua Feldberger, 43, of Howell, New Jersey, pleaded guilty on October 22, 2025, before U.S. District Judge Edward S. Kiel to one count of bank fraud conspiracy.       

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

In June 2020, co-defendant Arthur Spitzer conspired with Deutsch and Feldberger to make it appear as if Spitzer owned three properties in Brooklyn, New York and agreed to sell them to Deutsch, who obtained a $4.5 million mortgage loan in connection with the transaction. Feldberger facilitated the fraudulent transaction as the owner of the settlement company that handled the transaction.  The defendants created and sent letters stating that Deutsch had deposited significant funds into escrow toward the transaction, when in reality he had not; they created fake documentation purportedly transferring control of the properties to Spitzer; and they lied to the mortgage lender by stating that the settlement company had received more than $2 million from Deutsch at closing, which led the mortgage lender to fund the loan.  The defendants then used the mortgage loan proceeds to fund Deutsch’s down payment, which he had supposedly already provided.

Further, in 2020 and 2021, Deutsch fraudulently obtained approximately $1.8 million of government loans that were intended for small businesses distressed by the COVID-19 pandemic.  The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a federal law enacted in March 2020 and was designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic.  The CARES Act authorized the U.S. Small Business Administration (SBA) to provide Economic Injury Disaster Loans (EIDLs) of up to $2 million to eligible small businesses that were experiencing substantial financial disruption due to the COVID-19 pandemic.  To obtain an EIDL loan, a qualifying small business was required to submit an application and provide information on its operations, including the number of employees and revenues or expenses.  Deutsch obtained EIDL loans for businesses that had little or no operations by submitting loan applications that included false statements about the applicant companies’ number of employees, revenues, cost of goods sold, or lost rents.

The counts of bank fraud conspiracy and bank and wire fraud conspiracy are punishable by a maximum of 30 years in prison and a $1,000,000 fine, or twice the gross gain or loss from the offense.  The count of wire fraud is punishable by a maximum of 20 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense.

Feldberger is scheduled to be sentenced on February 23, 2026, and Deutsch is scheduled to be sentenced on March 16, 2026.

Acting U.S. Attorney and Special Attorney Habba credited special agents of the Federal Bureau of Investigation’s Atlantic City Resident Agency, under the direction of Special Agent in Charge Stefanie Roddy in Newark; special agents of the Internal Revenue Service – Criminal Investigation, under the direction of Special Agent in Charge Jenifer L. Piovesan in Newark; and special agents of the Federal Deposit Insurance Corporation – Office of the Inspector General, under the direction of Patricia Tarasca, Special Agent-in-Charge, New York Regional Office, with the investigation leading to these guilty pleas.

The government is represented by Assistant U.S. Attorneys Daniel A. Friedman and Elisa T. Wiygul of the U.S. Attorney’s Office’s Criminal Division in Camden.

The charges and allegations pending against Arthur Spitzer are merely accusations, and he is presumed innocent unless and until proven guilty.

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Defense counsel:

Deutsch: Timothy Sini, Esq., New York

Feldberger: Zach Intrater, Esq., New York

Spitzer: Henry Mazurek, Esq., and Jason Ser, Esq., New York

CAMDEN, N.J. – A Gloucester County, New Jersey man was sentenced to 12 months in prison for willfully evading more than $3,400,000 of taxes, Acting U.S. Attorney and Special Attorney Alina Habba announced.

Jose Camilo Perez, Jr., 54, of Sewell, New Jersey, previously pleaded guilty on November 20, 2025, before Chief U.S. District Judge Renée Marie Bumb to an Information charging him with one count of tax evasion.

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

Perez controlled a company that digitized medical records for hospitals and other healthcare entities.  From 2016 through 2023, the business received more than $8,000,000 for the services it performed.  Perez attempted to evade the assessment of federal income taxes by cashing checks payable to the business at a check cashing business rather than depositing those checks into the business’s bank account or his personal bank account, and then he used the cash for personal expenses and to pay payroll.  From 2016 through 2023, Perez did not report any of the income he received from the business to the IRS.  As a result, Perez evaded income taxes of more than $3,400,000.

Acting U.S. Attorney and Special Attorney Alina Habba credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Jenifer L. Piovesan in Newark, with the investigation leading to this sentencing.

In addition to the prison term, Chief Judge Bumb sentenced Perez to 3 years of supervised release and ordered him to pay restitution in the amount of $3,434,066.

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

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Defense counsel:

Brian J. McMonagle Esq., Philadelphia, Pennsylvania

NEWARK, N.J. – A New Jersey pharmacy owner pleaded guilty to health care fraud, Acting U.S. Attorney and Special Attorney Alina Habba announced.

Nestor E. Jaime, 37, of Pine Brook, New Jersey, pleaded guilty on November 19, 2025, to an Indictment charging him with one count of health care fraud, in violation of 18 U.S.C. § 1347, before U.S. district Judge Katharine S. Hayden in Newark federal court.

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

From December 2019 to December 2021, Jaime, through a pharmacy he owned located in Paterson, New Jersey, submitted hundreds of false claims to Medicare for a high reimbursement (i.e., more than $4,000 per prescription) medication called Dificid, which the pharmacy never actually purchased or dispensed. Jaime submitted false claims on behalf of dozens of Medicare beneficiaries who never were prescribed any Dificid. To make it appear as though the Medicare beneficiaries’ health care providers had prescribed the medication, Jaime falsely included the providers’ unique provider numbers on the fraudulent claims. As a result of the scheme, Medicare paid Jaime reimbursements for false claims for Dificid totaling at least approximately $2.5 million, which Jaime spent on luxury vehicles and other personal expenditures.

The charge of health care fraud carries a maximum potential penalty of 10 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense, whichever is greatest.

Acting U.S. Attorney and Special Attorney Habba credited special agents of the Health and Human Services Agency Office of Inspector General, under the direction of Special Agent in Charge Naomi Gruchacz, and the Federal Bureau of Investigation, under the direction of Acting Special Agent in Charge Stefanie Roddy in Newark, with the investigation leading to the charge.

The government is represented by Assistant U.S. Attorneys Jessica R. Ecker and Kruti Dharia of the Health Care Fraud and Opioids Enforcement Unit in Newark.

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Defense counsel: Anthony Iacullo, Esq.

NEWARK, N.J. – A New Jersey man was charged with using counterfeit FDA documents purporting to authorize the marketing and sale of vaping products to defraud investors in a vaping company, Acting U.S. Attorney and Special Attorney Alina Habba announced.

Mohammad Abuhadba, 42, of Wayne, New Jersey, was charged by Indictment with two counts of wire fraud and three counts of use of counterfeit seal of federal agency. He appeared on November 19, 2025, for an arraignment before U.S. Magistrate Judge José R. Almonte and was released on $100,000 unsecured bond.

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

Abuhadba persuaded two individuals to invest in and co-own a vaping company by misrepresenting to them that Abuhadba had applied for and obtained authorization from the FDA to market and sell tobacco products, including e-cigarette and vaping products, in the United States.  In reality, Abuhadba never applied for or received such FDA authorization, and he instead created doctored FDA authorization documents using counterfeit agency seals that he provided to those investors.  After Abuhadba convinced the investors to begin investing in the vaping company, he repeatedly lied to them about the status of the company’s FDA authorization to induce them to invest more money.  He also doctored a letter he received from the FDA to further disguise that he did not have any FDA authorization to market and sell tobacco products in the United States.

Each charge of wire fraud 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, whichever is greatest. Each charge of use of a counterfeit seal of a federal agency carries a maximum potential penalty of 5 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense, whichever is greatest.

Acting U.S. Attorney and Special Attorney Habba credited special agents of the U.S. Attorney’s Office for the District of New Jersey and the Federal Bureau of Investigation, under the direction of Acting Special Agent in Charge Stefanie Roddy in Newark, with the investigation leading to the charges.

The government is represented by Assistant U.S. Attorneys Jessica R. Ecker and Garrett J. Schuman of the Health Care Fraud and Opioids Enforcement Unit in Newark.

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Defense counsel: John Yauch, Esq.

Newark, N.J. – Five companies based in Bucks County, Pennsylvania entered into a settlement agreement with the United States resolving allegations that they violated the False Claims Act by taking Paycheck Protection Program (PPP) loans to which they were not entitled, Acting U.S. Attorney and Special Attorney Alina Habba announced.

According to the allegations in the complaint and the contentions of the United States in the settlement agreement:

In April 2020, Fred Beans Holdings, Inc.; Auto Express Enterprises, Inc.; Autorent of Doylestown Inc.; McCafferty Autorent Inc.; and Noble Advertising, Inc. (together, “the Defendants”) each applied for and received approximately $973,395 in PPP loans. Under the eligibility rules in effect at the time, businesses with more than 500 employees, inclusive of their affiliates, were not eligible for PPP loans. In their respective loan applications, the Defendants certified that they were eligible for their loans. However, the Defendants were ineligible for their loans because, inclusive of their affiliates, they had more than 500 employees. After receiving their PPP loans, Defendants sought and received forgiveness of the total amount of the loans plus interest that had accrued.

Defendants fully cooperated in the investigation and resolution of this matter. In accordance with the terms of the settlement agreement, Defendants will pay the United States $1,427,869.  The settlement resolves a lawsuit filed under the whistleblower provision of the False Claims Act, which permits private parties, called relators, to file suit on behalf of the United States for false claims and share in a portion of the government’s recovery. In this matter, the relator is receiving $142,786 as the share.

The government is represented by Assistant U.S. Attorney David V. Simunovich of the Health Care Fraud and Opioids Enforcement Unit in Newark.

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

The qui tam case is captioned United States ex rel. Forsyth v. Fred Beans Holdings, Inc., et al., 25-2324 (D.N.J.).

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Counsel for Ulma Form Works, Inc.: Denise Branch, Esq., Raleigh, NC

Counsel for Relator Aidan Forsyth: Eric Jaso, Esq., Montclair, NJ

NEWARK, N.J. – A Brooklyn, New York, was sentenced to 121 months in prison for his role in a conspiracy to commit child sex trafficking, Acting United States Attorney and Special Attorney Alina Habba announced.

Soauib Butcher, 31, of Brooklyn, previously pleaded guilty before U.S. District Judge Michael E. Farbiarz in Newark federal court to one count of conspiracy to commit sex trafficking of a minor. Judge Farbiarz imposed the sentence on November 7, 2025, in Newark federal court.

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

In August 2019, Butcher met the victim at a train station and brought her to Elizabeth, New Jersey, where, from August 2019 to January 2020, the victim stayed with Butcher and a co-conspirator in a series of motel rooms. The co-conspirator posted advertisements depicting the victim on escort websites and, together with Butcher, arranged for customers to come to the motels to have sex with the victim in exchange for money.

In addition to the prison terms, Judge Farbiarz sentenced Butcher to five years of supervised release.

“Soauib Butcher supported himself, for several months, on the daily sexual exploitation of a minor. This sentence sends a message that this Office is committed to protecting children from sexual predators.”

- Acting U.S. Attorney and Special Attorney Alina Habba

“Sexual exploitation is demeaning, damaging and puts already vulnerable minors in extremely unsafe circumstances,” Stefanie Roddy, Special Agent in Charge of the FBI in Newark, said. “Butcher profited off of the arrangement he had with this victim. The FBI and its partners work tirelessly so that these minors get the protection they deserve from predators."

Acting U.S. Attorney and Special Attorney Habba credited special agents of the FBI, under the direction of Special Agent in Charge Stefanie Roddy, with the investigation.

This investigation was conducted as part of the U.S. Attorney’s Office for the District of New Jersey’s Human Trafficking Task Force, which was formed in 2025. The Task Force brings together federal and state agencies to collaborate and dedicate resources to combat human trafficking and prosecute human trafficking offenders who endanger the safety of the community. The Human Trafficking Task Force is composed of the U.S. Attorney’s Office, the Federal Bureau of Investigation, U.S. Department of Homeland Security, Homeland Security Investigations, U.S. Department of Labor, U.S. Department of Health and Human Services, Office of Inspector General, and the Internal Revenue Service.

The government is represented by Assistant U.S. Attorneys Aaron L. Webman, Deputy Chief of the Economic Crimes Unit, and Katherine M. Romano, Chief of the General Crimes Unit.

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Defense counsel: Patrick Joyce, Esq., Maplewood, NJ

NEWARK - Today, the U.S. District Court for the District of New Jersey terminated the consent decree in United States v. City of Newark, marking the completion of a nine-year reform effort of the Newark Police Department (NPD).  Through the consent decree, NPD resolved prior Department of Justice findings by implementing constitutional policing requirements for stops, searches, arrests, and use of force.  Based on completion of those and other requirements, Newark moved to dismiss the decree; the Justice Department supported the City’s motion.

“Over the last decade, the Newark Police Division has made tremendous improvements to ensure constitutional policing and to increase community trust. NPD remains a valuable law enforcement partner, and we will continue to work with it to reduce gun crimes, drug trafficking, and gang violence.  The men and women of NPD should be proud of what they accomplished, and we appreciate the hard work they do every day to keep the people of Newark safe.” 

- Acting U.S. Attorney and Special Attorney Alina Habba

“We are proud to stand by the men and woman of NPD as federal oversight ends, and the court returns control of local law enforcement to the City of Newark,” said Assistant Attorney General Harmeet K. Dhillon of the Justice Department’s Civil Rights Division.  “We look forward to the continued, effective policing of the City—in a constitutional manner—to protect all Americans from crime.”

In 2011, the Justice Department and the U.S. Attorney’s Office for the District of New Jersey jointly initiated an investigation into the NPD under the Violent Crime Control and Law Enforcement Act of 1994, Title VI of the Civil Rights act of 1964, and the Omnibus Crime Control and Safe Streets Act of 1968.  After concluding the investigation, in 2016 the United States and the City of Newark entered into a consent decree to address the investigation’s findings that NPD engaged in a pattern or practice of conducting stops and using unjustified and excessive force in violation of the Fourth Amendment; allegations of biased policing; retaliating against individuals who questioned police action in violation of the First Amendment; and subjecting individuals to theft by NPD officers in violation of the Fourth and Fourteenth Amendments.  NPD has been implementing the decree since its entry. In 2024, the Court granted the parties’ joint motion to terminate several of the consent decree’s requirements that NPD completed by that time.

The Special Litigation Section of the U.S. Department of Justice’s Civil Rights Division and the District of New Jersey U.S. Attorney’s Office’s Civil Division and jointly handled the investigation and litigation.

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Yesterday, the U.S. District Court for the District of New Jersey terminated the consent decree in United States v. City of Newark, marking the completion of a nine-year reform effort of the Newark Police Department (NPD). Through the consent decree, NPD resolved prior Department of Justice findings by implementing constitutional policing requirements for stops, searches, arrests, and use of force. Based on completion of those and other requirements, Newark moved to dismiss the decree; the Justice Department supported the City’s motion.

“We are proud to stand by the men and woman of NPD as federal oversight ends, and the court returns control of local law enforcement to the City of Newark,” said Assistant Attorney General Harmeet K. Dhillon of the Justice Department’s Civil Rights Division. “We look forward to the continued, effective policing of the City — in a constitutional manner — to protect all Americans from crime.”

“Over the last decade, the Newark Police Division has made tremendous improvements to ensure constitutional policing and to increase community trust,” said Acting U.S. Attorney and Special Attorney Alina Habba for the District of New Jersey. “NPD remains a valuable law enforcement partner, and we will continue to work with it to reduce gun crimes, drug trafficking, and gang violence. The men and women of NPD should be proud of what they accomplished, and we appreciate the hard work they do every day to keep the people of Newark safe.”

In 2011, the Justice Department and the U.S. Attorney’s Office for the District of New Jersey jointly initiated an investigation into the NPD under the Violent Crime Control and Law Enforcement Act of 1994, Title VI of the Civil Rights act of 1964, and the Omnibus Crime Control and Safe Streets Act of 1968. After concluding the investigation, in 2016 the United States and the City of Newark entered into a consent decree to address the investigation’s findings that NPD engaged in a pattern or practice of conducting stops and using unjustified and excessive force in violation of the Fourth Amendment; allegations of biased policing; retaliating against individuals who questioned police action in violation of the First Amendment; and subjecting individuals to theft by NPD officers in violation of the Fourth and Fourteenth Amendments. NPD has been implementing the decree since its entry. In 2024, the Court granted the parties’ joint motion to terminate several of the consent decree’s requirements that NPD completed by that time.

The Special Litigation Section of the U.S. Department of Justice’s Civil Rights Division and the District of New Jersey U.S. Attorney’s Office’s Civil Division and jointly handled the investigation and litigation.

TRENTON, N.J. – A New Jersey man who was previously convicted twice of defrauding investors of more than $230 million was sentenced on November 14, 2025 to 37 years in prison for his role in a Ponzi-like fraud scheme that resulted in investor losses of more than $44 million, as well as other offenses, and his co-conspirator was sentenced to 12 years in prison, Acting U.S. Attorney and Special Attorney Alina Habba announced.  Both were also ordered to pay more than $44 million in restitution to the victims of their scheme.

Following a six-week jury trial earlier this year before U.S. District Judge Michael A. Shipp in Trenton federal court, Eliyahu “Eli” Weinstein, aka “Mike Konig,” 50, and Aryeh “Ari” Bromberg, 51, were each convicted of conspiracy to commit securities fraud, securities fraud, conspiracy to commit wire fraud, three counts of wire fraud, conspiracy to commit money laundering, transacting in criminal proceeds, conspiracy to make false statements to the U.S. Probation Office, conspiracy to obstruct justice, and obstruction of justice. Weinstein was also convicted of four counts of making false statements to the United States Probation Office. Five of Weinstein and Bromberg’s conspirators, Christopher Anderson, 49, Richard Curry, 39, Shlomo Erez, 57, Alaa Hattab, 37, and Joel Wittels, 59, previously pleaded guilty to charges stemming from the same scheme and are all awaiting sentencing.

According to documents in this case and evidence at trial:

Weinstein was previously convicted two times in New Jersey federal court for defrauding investors. His first case involved a real estate Ponzi scheme, and his second case stemmed from an additional fraud Weinstein committed while on pretrial release. These crimes resulted in combined losses to investors of approximately $230 million. On Jan. 19, 2021, Weinstein began serving a term of supervised release stemming from his prior convictions.

But soon after being released from prison, Weinstein began orchestrating a new scheme to solicit money from investors, including through a company called Optimus Investments Inc. (Optimus). Using the alias “Mike Konig,” Weinstein secretly ran Optimus through Bromberg and Wittels. They kept Weinstein’s true name and identity hidden because, as Weinstein acknowledged in a secretly recorded conversation, investors wouldn’t give them “a penny” if they learned of Weinstein’s involvement.

Weinstein, Bromberg, and Wittels received the bulk of investor money through a second company, Tryon Management Group LLC (Tryon), which was owned and controlled by Anderson and Curry. Tryon promised these individual investors—consisting mostly of friends and family—lucrative opportunities to invest in deals involving COVID-19 masks and test kits, scarce baby formula, and first-aid kits supposedly bound for wartime Ukraine. Posing as Mike Konig, Weinstein provided the information for these supposed deals. Based on that information, investors gave money to Tryon, believing the deals were legitimate and not knowing about Weinstein’s involvement. In turn, Tryon transferred those funds to Weinstein, through Optimus.

In 2021, after Optimus started receiving investor money, Optimus was unable to pay its investors. Rather than reveal this information to investors, the conspirators agreed to pool money from existing investors of both Optimus and Tryon and use it to make monthly payments to other investors in a Ponzi-like fashion. The conspirators concealed this arrangement from investors by falsely telling investors that the payments derived from legitimate investment returns, not other investors’ money.

In late August 2022, Hattab revealed Weinstein’s true identity to Anderson and Curry. In a series of subsequent meetings, which were recorded, Weinstein admitted to misappropriating investor money and making various false statements and sending fake documents concerning the purported deals. Weinstein acknowledged that he was conducting a Ponzi scheme, stating, “I finagled, and Ponzied, and lied to people to cover us.”

Once Anderson and Curry learned that Mike Konig was actually Weinstein, Weinstein and Bromberg lied repeatedly to Anderson and Curry in an effort to prevent them from reporting their misconduct to federal law enforcement and Probation. Anderson and Curry then agreed with Weinstein, Bromberg, and other conspirators to continue concealing Weinstein’s identity from investors and to raise additional money to pay off existing investors, all in an effort to stop the Ponzi scheme from falling apart and to cover up the fraud. In total, the defendants fraudulently obtained more than $88 million from investors and caused losses of more than $44 million.

In addition to defrauding investors, Weinstein and Bromberg also conspired to launder their fraud proceeds and lie to Weinstein’s federal probation officer. They helped hide Weinstein’s assets that should have been used to pay over $200 million in restitution that he still owes his previous victims. They also concealed Weinstein’s myriad business activities, income, and accounts, which he was required to disclose to the court and Probation or which were expressly prohibited by the terms of his supervised release. In multiple secretly recorded conversations, Weinstein discussed his intent to conceal his various assets from the government. In one such conversation, Weinstein referenced hidden assets that he and others “can’t touch” while he was on supervised release because they would “go to jail.” Weinstein then boasted, “I just told you something that no one in the world knows because I hid money. Get it?”

Acting U.S. Attorney and Special Attorney Alina Habba credited special agents of the FBI, under the direction of Acting Special Agent in Charge Stefanie Roddy in Newark, and special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Jenifer L. Piovesan, with the investigation leading to the convictions.

The government is represented by Assistant United States Attorney Carolyn Silane, Chief of the Economic Crimes Unit, and Assistant U.S. Attorney Marko Pesce, Deputy Chief of the Bank Integrity, Money Laundering, and Recovery Unit.

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Defense counsel for Weinstein: Ilana Haramati and Henry E. Mazurek, Esqs., New York, NY

Defense counsel for Bromberg: Marc Agnifilo and Jacob Kaplan, Esqs., New York, NY 

NEWARK, N.J. – Twelve individuals have been charged for their roles in a conspiracy to commit bank fraud by depositing stolen checks and withdrawing the funds, Acting U.S. Attorney and Special Attorney Alina Habba announced.

“As alleged in the complaint, the Defendants deposited stolen checks into fraudulent bank accounts for their own personal gain, taking advantage of a COVID-19 pandemic relief program earmarked for struggling businesses.  Rooting out fraud on pandemic programs and holding the alleged perpetrators accountable continues to be a top priority of this office and our law enforcement partners.”

- Acting United States Attorney and Special Attorney Alina Habba

Wayne Bessant, 44, of Hamilton, New Jersey; Britany Brown, 39, of Philadelphia, Pennsylvania; John Gerard Ebert, 42, of Hamilton, New Jersey; Joseph Graves-Carmichael, 43, of Trenton, New Jersey; Andrew Hooper, 37, of New Brunswick, New Jersey; Thomas Lee, 55, of Beverly, New Jersey; Patricia Kearse, 46, of Philadelphia, Pennsylvania; Clarence Semmon, 41, of Trenton, New Jersey; Ryan Small, 32, of Ewing, New Jersey; Dwayne Reddon, 39, of Trenton, New Jersey; Shabazz Rouzard, 33, of Ewing, New Jersey; and Raymond Wade, 42, of Morrisville, Pennsylvania,are charged by criminal complaint with one count of conspiracy to commit bank fraud. Ten Defendants appeared on November 13 before Magistrate Judge James B. Clark, III in Newark Federal Court. One Defendant was already in custody on a state case and one Defendant remains at large. Two defendants appeared on November 17, 2025 before Magistrate Judge José R. Almonte in Newark Federal Court. One defendant appeared on November 17, 2025 before Magistrate Judge Ann Marie Donio in Camden Federal Court. 

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

From March 2023 through May 2025, the Defendants conspired to deposit stolen checks—including U.S. Department of Treasury Checks—at various banks in New Jersey and Pennsylvania. The Defendants impersonated the businesses listed as payees on the stolen checks by acquiring business documents in the names of the payees. Once the Defendants acquired the fraudulent business documents, they used them to impersonate the victims and open fraudulent business bank accounts where they deposited the stolen checks. In total, the Defendants deposited or attempted to deposit approximately 84 Treasury checks, and 27 commercial checks totaling over $11 million and split the proceeds. Many of the Treasury checks were refunds issued under the Employee Retention Credit, a program the Internal Revenue Service created during the COVID-19 pandemic to encourage businesses to retain employees.

The bank fraud conspiracy is punishable by a maximum potential penalty of 30 years in prison and also carries a fine of up to $1,000,000.

“Just as the twelve subjects schemed and conspired to cheat the system by depositing stolen checks meant for COVID-19 pandemic relief efforts, the FBI and our federal partners worked together to follow the facts and evidence that would lead to this charge. This case is a textbook example of the partnerships we build to prevent fraud against the Government and protect taxpayers from fraud in any form,” said FBI Newark Special Agent in Charge, Stefanie Roddy.

“This investigation underscores HSI’s commitment to protecting the integrity of our nation’s financial system and ensuring that those who exploit COVID-19 relief programs are held accountable,” said HSI Newark Special Agent in Charge Michael S. McCarthy. “HSI will continue to work closely with our law enforcement partners to uncover complex schemes targeting American taxpayers and to relentlessly dismantle the criminal networks responsible, stripping them of their illicit gains.”

“COVID-19 relief programs, including the Employee Retention Credit, were implemented to help honest Americans keep their jobs during an unprecedented time of hardship.  Through deception and fraud, the Defendants allegedly stole over $11 million from the hardworking businesses these pandemic relief programs were meant to benefit,” stated Special Agent in Charge Jenifer L. Piovesan, IRS Criminal Investigation, Newark Field Office.  “IRS-CI will continue to partner with our federal law enforcement colleagues to investigate those who defrauded pandemic relief programs and victimized those in need.”

Acting U.S. Attorney and Special Attorney Habba credited special agents with the Federal Bureau of Investigations, Newark-Trenton Resident Agency under the direction of Special Agent in Charge Stefanie Roddy; special agents with Homeland Security Investigations, Cherry Hill, under the direction of Special Agent in Charge Michael S. McCarthy; special agents with the Internal Revenue Service – Criminal Investigation, Newark Field Office, under the direction of Jenifer L. Piovesan; special agents with Treasury Inspector General for Tax Administration, Northeast Field Division, under the direction of Special Agent in Charge Michael Carpenter; special agents with the Defense Criminal Investigative Service, Northeast Field Office, under the direction of Acting Special Agent in Charge Christopher Silvestro; special agents with the U.S. Air Force – Office of Special Investigations, Detachment 307, Joint Base McGuire-Dix-Lakehurst, New Jersey, under the direction of Special Agent in Charge Rebecca B. Bates; and postal inspectors of the U.S. Postal Inspection Service, Philadelphia Division, under the direction of Inspector in Charge, Christopher Nielson, with the investigation leading to today’s arrest. 

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

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

The government is represented by Assistant U.S. Attorneys Aja Espinosa and Benjamin D. Bleiberg of the Economic Crimes Unit in Newark. 

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

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Defense counsel:

Bessant: David Bahuriak, Esq.

Brown: Wanda Akin, Esq.

Graves-Carmichael: Kevin Buchan, Esq.

Hooper: Jacqueline E. Cistaro, Esq.

Kearse: William Strazza, Esq.

Semmon: Tara Breslow-Testa, Esq.

Small: Laurie Fierro, Esq.

Reddon: Roberto Espinosa, Esq.

Rouzard: Kathleen Theurer-Platts, Esq.

Wade: Michael Pappa, Esq. 

NEWARK N.J. – A New Jersey tax preparer was found guilty by a jury for his scheme seeking more than $170 million in fraudulent tax refunds from the Internal Revenue Service (“IRS”) by causing more than 1,900 false tax returns to be filed with the IRS claiming COVID-19-related employment tax credits, Acting U.S. Attorney and Special Attorney Alina Habba announced.

Leon Haynes, 52, of Teaneck, was convicted of 15 counts of aiding and assisting in the preparation and presentation of false tax returns, one count of mail fraud, and two counts of tax evasion.  Haynes was convicted following a six-day jury trial before U.S. District Judge William J. Martini in Newark federal court.  Sentencing is scheduled for March 12, 2026.

According to documents in this case and evidence at trial:

In response to the COVID-19 pandemic and its economic impact, Congress authorized an employee retention tax credit and sick and family leave credit that small businesses could use to help keep their business afloat and employees on payroll.

From November 2020 to May 2023, Haynes orchestrated a massive, multimillion dollar scam to exploit those COVID-related tax credits for his own greed. As a tax preparer, Haynes prepared and submitted, and worked with others to prepare and submit, more than 1,900 false employment tax returns to the IRS claiming COVID-related tax credits on behalf of himself and his clients. Each of these tax forms contained a number of false statements.  For example, the vast majority of the tax forms claimed a fictitious number of employees and/or fabricated wages.

Haynes and his co-conspirators fraudulently sought more than $170 million in tax refunds on behalf of his own businesses and his clients, and successfully caused the government to pay out over $55 million in refunds.

Throughout the scheme Haynes also charged clients a percentage of the refund checks as his fee and requested cash payments. He failed to report the money he received from his clients, thereby evading his own taxes. 

Each count of aiding and assisting in the preparation of false returns carries a maximum penalty of three years in prison and a $250,000 fine; mail fraud carries a maximum penalty of 20 years in prison and a $250,000 fine; and each tax evasion count carry a maximum penalty of five years in prison and a $250,000 fine.

Acting U.S. Attorney and Special Attorney Alina Habba credited special agents the IRS – Criminal Investigation, under the direction of Special Agent in Charge Jenifer L. Piovesan; special agents of the Social Security Administration, Office of the Inspector General, under the direction of Special Agent in Charge Amy Connelly, and postal inspectors from the U.S. Postal Inspection Service, under the direction of Inspector in Charge Christopher Nielsen, Philadelphia Division, with the investigation.

The government is represented by Assistant U.S. Attorney Fatime Meka Cano, Matthew Stark, and Peter A. Laserna of the U.S. Attorney’s Office Criminal Division in Newark. Substantial assistance was provided by the U.S. Justice Department’s Tax Division.

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

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

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Defense Counsel for Haynes: Michael Koribanics, Esq., and Vando Cardoso, Esq. 

CAMDEN, N.J. – A New Jersey woman was charged with conspiring and falsely reporting to law enforcement that she had been violently assaulted with a firearm due to her employment with a federal official, Acting U.S. Attorney and Special Attorney Alina Habba announced.

Natalie Greene, 26, of Ocean City was charged with one count of conspiracy to convey false statements and hoaxes and one count of making false statements to federal law enforcement.  On November 19, 2025, Greene made her initial appearance in federal court before U.S. Magistrate Judge Elizabeth A. Pascal.  Greene was released on a $200,000 unsecured bond and additional conditions, as set by the Court.

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

Late at night on July 23, 2025, Greene’s co-conspirator called 911 and reported that she and Greene had been attacked by three men when they were out walking on a trail at a nature preserve in Egg Harbor Township.  According to the co-conspirator, during the attack, the men had called Greene by name and had specifically referenced her employment with Federal Official 1, an official whose identity is known to the Government.   

When law enforcement officers located Greene, she was lying in a wooded area just off the trail, with her hands and feet bound together with black zip ties.  Greene’s shirt was pulled over her head and was also tied with a black zip tie. Greene had numerous lacerations on her face, neck, upper chest, and shoulder.  The words “TRUMP WHORE” were written on her stomach and the words “[Federal Official 1] IS RACIST” were written on her back.  Greene was crying and yelling that one of her alleged attackers had a gun.

Greene told police officers that one or more of the men who allegedly attacked her said he had a gun and threatened to shoot her.  Greene also said that one or more of the attackers had held her down and restrained her movement, cutting her and writing on her body. A couple days later, after receiving medical treatment for her lacerations, Greene again described her alleged attack to law enforcement officers, including an agent with the Federal Bureau of Investigation.

The investigation revealed that Greene had not, in fact, been attacked by three men at gunpoint on July 23.  Instead, Greene had paid a body modification/scarification artist to deliberately cut the lacerations on her face, neck, upper chest, and shoulder, based on a pattern that she had provided beforehand.   Law enforcement officers recovered black zip ties in Greene’s car on the night of the alleged attack, similar to the zip ties that had been used to bind Greene’s arms and feet.  Also, the investigation revealed that, two days prior to the alleged attack, the cellphone of Greene’s co-conspirator had been used to search “zip ties near me.”

The count of conspiracy has a maximum penalty of five years’ imprisonment, a $250,000 fine, and a term of 3 years of supervised release.  The count of false statements also has a maximum penalty of five years’ imprisonment, a $250,000 fine, and a term of 3 years of supervised release. 

Acting U.S. Attorney and Special Attorney Habba credited the following law enforcement agencies with the investigation:  special agents and Joint Terrorism Task Force Officers with the Federal Bureau of Investigation, under the direction of Special Agent in Charge Stefanie Roddy; detectives with the Atlantic County Prosecutor’s Office, under the direction of Prosecutor William Reynolds; officers and detectives with the Egg Harbor Township Police Department, under the direction of Chief Marcella Aylwin; officers with the New Jersey State Police; and special agents with the Capitol Police.

The government is represented by Assistant U.S. Attorneys Patrick C. Askin and Sara A. Aliabadi in the Criminal Division in Camden, and James Donnelly of the Department of Justice National Security Division.

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

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Defense counsel: Louis M. Barbone, Jacobs & Barbone, P.A.

TRENTON, N.J. – An Ocean County, New Jersey man was sentenced to 120 months in prison for possessing images of child sexual abuse, Acting U.S. Attorney and Special Attorney Alina Habba announced today.

John Mangan, 79, of Lanoka Harbor, previously pleaded guilty before U.S. District Judge Michael A. Shipp in Trenton federal court to an information charging him with one count of possession of child pornography. Judge Shipp imposed the sentence today in Trenton federal court.

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

On October 29, 2024, agents with Department of Homeland Security, Homeland Security Investigations, executed a search warrant at Mangan’s residence in Lanoka Harbor and discovered an electronic device containing over 250 images of children being sexually abused.  Mangan was previously convicted of sexual offenses involving minors, including: (i) a New Jersey conviction for sexual assault against a minor, for conduct that occurred while Mangan was a school principal; and (ii) a prior federal conviction for possession of child pornography.

In addition to the prison term, Judge Shipp sentenced Mangan to a five-year term of supervised release and to pay restitution to his victims.

Acting U.S. Attorney and Special Attorney Habba credited special agents of Homeland Security Investigations Newark, under the direction of Special Agent in Charge Michael S. McCarthy, with the investigation leading to today’s guilty plea.

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

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

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Defense counsel: Suzanne Axel, Hackensack, New Jersey.

NEWARK, NJ. –  The U.S. Attorney’s Office has charged a New Jersey man with possessing a dangerous weapon and depredation of federal property during an incident that occurred last week, Acting United States Attorney and Special Attorney Alina Habba announced.

Keith Michael Lisa, 51, of Barnegat, NJ, was arrested and charged by complaint with one count of possession of a dangerous weapon in a federal facility and one count of depredation of federal property.  Lisa appeared on Monday, November 17, 2025, before U.S. Magistrate Judge José R. Almonte in Newark federal court and was detained.

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

Lisa entered the Peter Rodino Federal Building in Newark, shortly before 5:00pm, on Wednesday, November 12, 2025, with a full-sized, aluminum baseball bat.  Lisa said he needed to see the Attorney General’s Office and security informed Lisa that the bat was a prohibited weapon that he could not bring into the building.  Lisa left and returned a few minutes later without the weapon. He was visibly irate and mumbling as he went through security. Lisa continued to the reception area of the U.S. Attorney’s Office, where witnesses saw that he was angry and making threats about tearing the place up. Lisa damaged federal property by knocking framed items off the walls. After learning law enforcement was looking for him, rather than turn himself in, Lisa went into hiding, requiring a coordinated, state-wide effort by federal, state, and local law enforcement to locate and arrest him in the early morning hours of November 15.

Acting U.S. Attorney and Special Attorney Habba credited special agents of the Federal Bureau of Investigation, under the direction of Special Agent in Charge Stefanie Roddy; the U.S. Marshals Service, under the direction of Marshal Juan Mattos, Jr., Homeland Security Investigations (HSI) Newark, under the direction of Special Agent in Charge Michael S. McCarthy; Homeland Security Investigations (HSI) New York, under the direction of Special Agent in Charge Ricky J. Patel; Federal Protective Service, under the direction of Director Faron K. Paramore; New Jersey State Police, under the direction of Colonel Patrick J. Callahan; Ocean County Sheriff’s Office, under the direction of Sheriff Michael G. Mastronardy, and local Mahwah Police Department and Barnegat Police Department, with the investigation leading to the apprehension.

The government is represented by Ari B. Fontecchio and Lauren Kober, both Assistant United States Attorneys in Newark’s Criminal Division.

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

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Defense counsel: Assistant Federal Defender Candace Hom, Esq. 

NEWARK, NJ. –  An Indonesian jewelry company, its Indonesian co-owner, and two other Indonesian and Italian employees were charged last week with engaging in a scheme to illegally evade more than $86 million in customs duties and tariffs on more than $1.2 billion in jewelry imports into the United States, Acting U.S. Attorney and Special Attorney Alina Habba announced.

Icha Anastasia, 37, of Surabaya, East Java, Indonesia, and Claudio Fogale, 51, of Mussolente, Italy were arrested and charged last week by complaint with one count of conspiracy to commit wire fraud.  They appeared on Wednesday, November 12, 2025, before U.S. Magistrate Judge James B. Clark, III in Newark federal court and were detained.  Michael Yahya, who was also charged, remains in Indonesia and has not yet been arrested.

“As the complaint alleges, the defendants conspired to evade duties and tariffs for imports into the United States on an enormous scale. These charges demonstrate that the U.S. Attorney’s Office and our agency partners are dedicated to rooting out efforts by foreign companies and individuals to defraud the United States and undercut American businesses.”

- Acting U.S. Attorney and Special Attorney Alina Habba

“Perpetrating a years-long scheme to evade paying millions of dollars of customs duties and tariffs is a serious criminal offense.  Michael Yahya, Icha Anastasia, Claudio Fogale, and others are alleged to have used a foreign company to import over $1.2 billion of jewelry and illegally defraud the United States out of more than $86 million in customs duties and tariffs,” stated Special Agent in Charge Jenifer L. Piovesan, IRS Criminal Investigation, Newark Field Office.  “IRS-CI is committed to working with our law enforcement partners to investigate fraud against the United States and foster confidence in the legal system.” 

“This case underscores HSI’s unwavering commitment to protecting the integrity of U.S. trade and ensuring that those who attempt to evade lawful duties or circumvent U.S. laws are held accountable,” said Homeland Security Investigations (HSI) Newark Special Agent in Charge Michael S. McCarthy. “As alleged, the defendants engaged in a complex, multi-year scheme to evade more than $86 million in duties and tariffs—defrauding the U.S. government and undermining legitimate American businesses. HSI, in partnership with our federal law enforcement colleagues, will continue to investigate and dismantle schemes that threaten the nation’s economic security and the rule of law.”

“This case underscores CBP’s role in safeguarding the U.S. economy by enforcing trade laws and holding suspected bad actors accountable,” said CBP’s New York Field Office Director of Field Operations Francis J. Russo. “Our officers and import specialists used data-driven targeting and meticulous examinations to help disrupt this suspected duty-evasion scheme while facilitating legitimate commerce.”

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

PT Untung Bersama Sejahtera, a/k/a “UBS Gold” (“UBS Gold”), Yahya, Anastasia, Fogale, and others have been involved in a large-scale customs duty and tariff evasion scheme.  UBS Gold is a major jewelry company headquartered in Indonesia that ships jewelry around the globe, including to the United States.  Yahya, an Indonesian national, is a co-owner of UBS Gold and its Export Marketing Head; Anastasia, an Indonesian national, served as a Senior Account Executive for UBS Gold who serviced customers in the United States; and Fogale, an Italian national, was also a UBS Gold employee who serviced customers in the United States.

UBS Gold—through its employees, agents, and representatives Yahya, Anastasia, Fogale, and others—engaged in a conspiracy to evade lawful duties and tariffs for shipments of jewelry to the United States.  To evade tariffs and duties, the defendants engaged in at least two related and overlapping schemes.

For years until in or around the end of 2020, Indonesia had duty-free treatment with the United States through the Generalized System of Preferences (“GSP”) program. The GSP program expired on or about December 31, 2020, and was not reauthorized by Congress.  Therefore, from on or about January 1, 2021, through the present, the United States has imposed a duty on jewelry imported from Indonesia to the United States.  UBS Gold and its co-conspirators evaded these duties by making jewelry in Indonesia and then shipping it to Jordan, which had a Free Trade Agreement with the United States, before sending it to the United States. The defendants then falsely claimed that UBS Gold jewelry had been manufactured in Jordan, which avoided the duty that would otherwise apply.

Starting earlier this year, the United States imposed tariffs for the importation of goods into the United States from many different countries, including Indonesia and Jordan.  To avoid those tariffs, the defendants and co-conspirators began shipping scrap gold from the United States to Jordan, which they falsely claimed was gold jewelry that simply needed to be assembled or finished in Jordan. Instead, the defendants and co-conspirators swapped the scrap gold for UBS Gold jewelry made in Indonesia, which they then shipped from Jordan to the United States.  The defendants and co-conspirators falsely claimed that the jewelry had been manufactured in the United States, so they could avoid paying the tariffs that would otherwise apply.

Through these schemes, from in or around 2021 through in or around October 2025, the defendants caused UBS Gold and its customers to avoid more than approximately $86,477,705.72 in duties and tariffs on more than $1.2 billion in jewelry shipments to the United States, including to New Jersey.

The wire fraud conspiracy charge carries a maximum of 20 years in prison and a maximum fine of either $250,000 for the individual defendants or $500,000 for the corporate entity or twice the gain or loss from the offense, whichever is greater.

Acting U.S. Attorney and Special Attorney Habba credited special agents and task force officers of the Internal Revenue Service – Criminal Investigation, under the direction of Special Agent in Charge Jenifer Piovesan in Newark; special agents with Homeland Security Investigations in Newark, under the direction of Special Agent in Charge Michael S. McCarthy; and officers and specialists of U.S. Customs and Border Protection at John F. Kennedy International Airport in New York, under the direction of Director of Field Operations Francis J. Russo.

The government is represented by Assistant U.S. Attorneys Olta Bejleri of the Economic Crimes Unit, Peter Laserna of the Bank Integrity, Money Laundering, and Recovery Unit, and Marko Pesce, Deputy Chief of the Bank Integrity, Money Laundering, and Recovery Unit in Newark.

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

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Defense Counsel for Icha Anastasia: Jerry Ballarotto, Hamilton

Defense Counsel for Claudio Fogale: Joseph Amsel, Newark

Marek Cherkaoui, 21, of Egg Harbor Township, New Jersey, was arrested today on cyberstalking offenses in connection with a Nihilistic Violent Extremist (NVE) network known as 764. He made his initial appearance today in the District of New Jersey and was ordered detained.

According to court documents, Cherkaoui has a lengthy history of making online comments involving threats and advocating for and supporting violence. From December 2024 through May 2025, Cherkaoui allegedly used the internet to threaten a minor female and told her to cut herself. On two occasions, the minor female cut her arms after being threatened by Cherkaoui.

According to the complaint, Cherkaoui has a history of making online comments espousing ideology related to the NVE network known as 764. Cherkaoui has expressed support for mass shooters, solicited child sex abuse materials from minors, and encouraged other individuals to harm themselves and others. Cherkaoui previously purchased books regarding the manufacture of explosives, body armor, zip ties, a trench coat, ski masks, and tactical gear. Many of these items were seized from his home in a June 2025 search by law enforcement agents. During the search of Cherkaoui’s home today, FBI agents found writings in which Cherkaoui discussed and planned murder and terroristic acts, including a multi-step plan that involving joining ISIS and returning to the United States to commit acts of terrorism.

The count of cyberstalking a minor victim carries a maximum penalty of 10 years in prison, up to a $250,000 fine, and up to three years of supervised release. If convicted, a federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

The FBI’s Joint Terrorism Task Force is investigating the case, with valuable assistance from the New Jersey State Police.

The U.S. Attorney’s Office for the District of New Jersey and the National Security Division’s Counterterrorism Section are prosecuting the case.

The Justice Department remains vigilant against the threat of Nihilistic Violent Extremist (NVE) networks, like 764, that operate within the United States and around the globe. NVEs often target vulnerable individuals, including minors, using social media platforms to share child sexual abuse material (CSAM) and gore material, and groom victims toward committing acts of violence. Victims are often extorted, coerced, compelled, and blackmailed into complying with NVE demands, including self-mutilation, online and in-person sexual acts, harm to animals, sexual exploitation of siblings and others, acts of violence, threats of violence, suicide, and murder. For more information on how to protect children and others, read about the online risks here: Parents, Caregivers, Teachers — FBI and the FBI’s March 2025 public service announcement.

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

CAMDEN, N.J. — Marek Cherkaoui, 21, of Egg Harbor Township, New Jersey, was arrested today on cyberstalking offenses in connection with a Nihilistic Violent Extremist (NVE) network known as 764, Acting U.S. Attorney and Special Attorney Alina Habba announced. He made his initial appearance today in the District of New Jersey and was ordered detained.

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

Cherkaoui has a lengthy history of making online comments involving threats and advocating for and supporting violence. From December 2024 through May 2025, Cherkaoui allegedly used the internet to threaten a minor female and told her to cut herself. On two occasions, the minor female cut her arms after being threatened by Cherkaoui.

Cherkaoui has a history of making online comments espousing ideology related to the NVE network known as 764. Cherkaoui has expressed support for mass shooters, solicited child sex abuse materials from minors, and encouraged other individuals to harm themselves and others. Cherkaoui previously purchased books regarding the manufacture of explosives, body armor, zip ties, a trench coat, ski masks, and tactical gear. Many of these items were seized from his home in a June 2025 search by law enforcement agents. During the search of Cherkaoui’s home today, FBI agents found writings in which Cherkaoui discussed and planned murder and terroristic acts, including a multi-step plan that involving joining ISIS and returning to the United States to commit acts of terrorism.

The count of cyberstalking a minor victim carries a maximum penalty of 10 years in prison, up to a $250,000 fine, and up to three years of supervised release. If convicted, a federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Acting U.S. Attorney and Special Attorney Habba credited special agents and Joint Terrorism Task Force Officers of Federal Bureau Investigation, under the direction of Special Agent in Charge Stefanie Roddy, and the New Jersey State Police with the investigation. The U.S. Attorney’s Office for the District of New Jersey and the National Security Division’s Counterterrorism Section are handling the prosecution.

The Justice Department remains vigilant against the threat of Nihilistic Violent Extremist (NVE) networks, like 764, that operate within the United States and around the globe. NVEs often target vulnerable individuals, including minors, using social media platforms to share child sexual abuse material (CSAM) and gore material, and groom victims toward committing acts of violence. Victims are often extorted, coerced, compelled, and blackmailed into complying with NVE demands, including self-mutilation, online and in-person sexual acts, harm to animals, sexual exploitation of siblings and others, acts of violence, threats of violence, suicide, and murder. For more information on how to protect children and others, read about the online risks here: Parents, Caregivers, Teachers — FBI and the FBI’s March 2025 public service announcement.

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

NEWARK, N.J. – A New Jersey man and a Washington man were charged with conspiracy and attempt to provide material support to the Islamic State of Iraq and al Sham (“ISIS”), Senior Counsel Philip Lamparello announced.

Tomas-Kaan Jimenez-Guzel, 19, of Montclair, New Jersey and Saed Ali Mirreh, 19, of Kent, Washington were each charged by complaint with one count of conspiracy and one count of attempt to provide material support to a designated foreign terrorist organization.  Jimenez-Guzel previously, on November 5, 2025, had his initial appearance in federal court before U.S. Magistrate Judge André M. Espinosa, and was detained.  Mirreh also had his initial appearance in federal court the same day before U.S. Magistrate Judge Michelle L. Peterson, and was detained.

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

From July 24, 2025 to November 4, 2025, through communications on encrypted messaging applications, Jimenez-Guzel, Mirreh, and other co-conspirators agreed to travel to Turkey in November 2025. They also agreed with other co-conspirators to travel from Turkey to “sham,” which is an Arabic term for the historical region of greater Syria, to join ISIS as fighters, and to provide themselves and others as personnel to ISIS.

On October 27, 2025, Jimenez-Guzel purchased a plane ticket to depart from Newark Liberty International Airport to Istanbul, Turkey on November 17, 2025. On October 28, 2025, Mirreh purchased a ticket to depart from Seattle-Tacoma International Airport to Istanbul, Turkey November 16, 2025.

After other individuals in Dearborn, Michigan, with whom Jimenez-Guzel and Mirreh were communicating were arrested on October 31, 2025, and charged with offenses related to those individuals’ plot to carry out an armed attack on behalf of ISIS, Jimenez-Guzel, Mirreh, and their co-conspirators accelerated their travel plans.

On November 3, 2025, Jimenez-Guzel re-booked his flight from Newark Liberty International Airport to Istanbul, Turkey to leave instead on November 5, 2025 (in the early morning hours, shortly after midnight on November 4, 2025). Then, on November 4, 2025, after communicating with Jimenez-Guzel and other co-conspirators, Mirreh booked an additional flight from Seattle-Tacoma International Airport to Istanbul, Turkey to leave on November 5, 2025. Jimenez-Guzel was arrested at Newark Liberty International Airport on November 4, 2025 after he arrived for his booked flight. Mirreh was arrested later that evening at his home in Washington State.

The counts of conspiracy and attempt to provide material support to a designated foreign terrorist organization each have a maximum penalty of 20 years’ imprisonment, a $250,000 fine, and a term of life of supervised release.  

Senior Counsel Lamparello credited Special Agents and Joint Terrorism Task Force Officers of the Federal Bureau of Investigation, under the direction of Special Agent in Charge Stefanie Roddy in Newark, New Jersey and Special Agent in Charge W. Mike Herrington in Seattle, Washington; and officers of the New York Police Department, Montclair Police Department, and Rowan University Police Department.  He also thanked the U.S. Attorney’s Office for the Western District of Washington.

The government is represented by Assistant U.S. Attorney Camila A. Garces of the National Security Unit in Newark, and Trial Attorneys James Donnelly, Patrick Cashman, and John Cella of the U.S. Department of Justice’s Counterterrorism Section of the National Security Division.

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

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Defense counsel for Jimenez-Guzel: Alyssa Cimino, Esq.

Defense counsel for Mirreh: Dawn Farina, Esq. and Casey M. Arbenz, Esq. 

NEWARK, N.J. – An Essex County Jersey man was charged with making interstate threats to Jewish individuals and to a California-based business, Senior Counsel Philip Lamparello announced.

Milo Sedarat, 21, of Montclair, New Jersey, was charged with two counts of transmitting threats in interstate commerce. Sedarat previously, on November 5, 2025, had his initial appearance in federal court before U.S. Magistrate Judge André M. Espinosa, and was detained.

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

In numerous direct messages on a social media platform, Sedarat expressed his hatred towards Jewish people and his desire to kill them.  Specifically, on January 15, 2025, Sedarat stated through direct message to another individual, “I hate Israel more than anything - [a]nd the people who support or sympathize - [b]ro my moms Jewish friends r brainwashing her . . . into being a Zionist . . . I wanna kill her friends [l]ike deadass . . . I’m gonna stab them with my sword.”  Sedarat also sent photographs to the individual via the social media platform depicting himself holding a sword, holding a knife, and holding two swords.   

On July 24, 2025, Sedarat texted another individual, “[b]ro, I’m actually gonna go strap a bomb to my chest and go blow up [California-based company] headquarters.”  The California-based company is an online platform headquartered in Palo Alto, California where businesses can hire freelancers to perform a variety of services, such as writing, graphic design, web development, marketing, and other online work.  Sedarat appeared to claim in the text conversation that the California-based company “stole my money and income” by closing his account.  

The counts of transmitting threats in interstate commerce each have a maximum penalty of five years’ imprisonment and a $250,000 fine.  

Senior Counsel Lamparello credited Special Agents and Joint Terrorism Task Force Officers of the Federal Bureau of Investigation, under the direction of Special Agent in Charge Stefanie Roddy in Newark, New Jersey and officers of the New York Police Department and Montclair Police Department.

The government is represented by Assistant U.S. Attorneys Casey S. Smith, Sammi Malek, and Vincent D. Romano of the National Security Unit in Newark, and Trial Attorney James Donnelly of the U.S. Department of Justice’s Counterterrorism Section of the National Security Division.

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

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Defense counsel for Sedarat: Areeb Salim, Esq. 

TRENTON, N.J. – A Mercer County, New Jersey man admitted that he defrauded the U.S. Department of Veterans Affairs by improperly obtaining over $256,000.00 in program benefits, Acting U.S. Attorney and Special Attorney Alina Habba announced.

Mark Stratton, 67, of Lawrence Township, New Jersey, pled guilty on September 25, 2025, before U.S. District Judge Robert Kirsch in Trenton federal court to an information charging him with theft of public money.

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

The United States Department of Veterans Affairs provided disability benefits to Stratton’s father, which passed to Stratton’s mother after his father died. Those benefits were paid monthly through electronic funds into a joint bank account held by both Stratton and his mother. After Stratton’s mother died in 2008, the benefits should have been terminated; however, Stratton did not notify the Department of Veterans Affairs about his mother’s death. Instead, he made withdrawals of the disability benefits for his own personal use. Through a joint investigation by the U.S. Department of Veterans Affairs-Office of the Inspector General and the Federal Bureau of Investigation, law enforcement determined that between 2008 and 2025, Stratton improperly withdrew approximately $256,027.00 in benefits.  

The charge of theft of public money carries a maximum sentence of 10 years in prison and a fine of up to $250,000. Sentencing is scheduled for January 27, 2026.

Acting U.S. Attorney and Special Attorney Habba credited special agents of the U.S. Department of Veterans Affairs – Office of the Inspector General, under the direction of Special Agent in Charge Christopher Algieri, and the Federal Bureau of Investigation, under the direction of Special Agent in Charge Stefanie Roddy in Newark, with the investigation leading to the guilty plea.

The government is represented by Special Assistant U.S. Attorney Keith Abrams of the Narcotics/OCDETF Unit in Newark.

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Defense counsel: Jonathan Marshall, Esq.

CAMDEN, N.J. – A Mays Landing woman admitted to conspiring to defraud the Internal Revenue Service by filing false employment tax returns that concealed a company’s cash payroll, Acting U.S. Attorney and Special Attorney Alina Habba announced.

Denise Davis, 52, of Mays Landing, New Jersey, pleaded guilty before U.S. District Judge Karen M. Williams in Camden federal court to an information charging her with one count of conspiring to defraud the IRS.

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

Davis worked at Davis Brothers Chimney Sweep & Masonry (“Davis Brothers”), a business located in Egg Harbor Township, New Jersey, owned by Davis’s spouse.  Davis admitted that between January 1, 2018 and April 30, 2024, she conspired with Henry Collins, the business’s bookkeeper, to defraud the IRS.  As part of the conspiracy, Collins utilized a commercial check casher to negotiate a substantial amount of Davis Brothers’s gross receipts checks.  Collins used some of the resulting cash to pay himself and other Davis Brothers employees in cash.  Collins provided the rest of the cash to Davis and her spouse.  Davis and Collins then provided false and misleading information to the business’s outside accounting firm that resulted in the preparation and filing of false payroll tax returns that omitted the employees paid in cash and their cash wages.  Davis also admitted that she failed to file individual income tax returns for herself and her spouse during the same time period.  Davis admitted that the conspiracy resulted in a tax loss of approximately $1.18 million.

The count of conspiracy carries a maximum penalty of 5 years in prison and a fine of up to $250,000.  Sentencing is scheduled for February 4, 2026.

Collins previously pleaded guilty for his role in the conspiracy and is scheduled to be sentenced in December 2025.

Acting U.S. Attorney and Special Attorney Habba credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Jenifer Piovesan in Newark, with the investigation leading to today’s guilty plea.

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

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Defense counsel: Michele Finizio, Esq., Moorestown, New Jersey

TRENTON, N.J. – A former co-founder and top executive of Prophecy Asset Management LP was arraigned today on charges of conspiring to defraud dozens of victim investors out of $294 million in funds, Acting U.S. Attorney and Special Attorney Alina Habba announced.

Jeffrey Spotts, 58, of Summit, New Jersey, was arraigned today before U.S. District Court Judge Michael A. Shipp in Trenton federal court on an indictment charging him with one count each of conspiracy to commit wire fraud, wire fraud, conspiracy to commit securities fraud, and securities fraud.

One of Spotts’s co-conspirators, John Hughes, 58, of Mahwah, New Jersey, previously pled guilty to securities fraud charges stemming from the same scheme.

According to the indictment:

Prophecy solicited investments and operated funds that, at their peak, had over $360 million in assets under management. Spotts co-founded Prophecy, with Hughes, and worked as its Chief Executive Officer and Portfolio Manager. From January 2015 to March 2020, Spotts conspired with Hughes to falsely represent to investors that Prophecy employed a “first-loss” trading strategy that purportedly allocated investor money to a diverse array of traders, called sub-advisors, who were required to provide cash collateral in order to gain access to the investors’ pooled money and backstop any potential losses. Spotts and Hughes also falsely represented to investors that if a sub-advisor began to experience trading losses that approached the amount of their required cash collateral, Prophecy would contact the sub-advisor to increase or replenish their collateral and, if necessary, suspend allocations and trading, or even terminate the sub-advisor if losses were substantial. These false claims induced victims to believe that Prophecy operated low-risk, transparent and diversified funds.

In reality, over time, Spotts and Hughes allocated most of the Funds’ capital to a single, primary sub-advisor without requiring him to provide cash collateral to back potential losses. They also failed to suspend his allocations or trading, even though he sustained approximately $290 million in losses that far exceeded his cash collateral. Spotts and Hughes fraudulently concealed this and other information from victim investors, causing the victims to believe their investments were far more secure than they actually were. Spotts, Hughes and the sub-advisor also actively covered up these spiraling losses and collateral deficiencies by using, among other things, bogus transactions and forged documents.

In turn, the sub-advisor helped Spotts and Hughes conceal millions of dollars in losses they caused to Prophecy’s funds through bad investments. Spotts, Hughes and the sub-advisor used fake documents and money that the sub-advisor provided to paper over and hide these bad investments from victim investors and Prophecy’s auditor. 

The fraud ultimately resulted in substantial trading losses that wiped out Prophecy’s funds and caused over $294 million in losses to the victims. 

The conspiracy to commit wire fraud and wire fraud charges each carry a maximum penalty of 20 years in prison and a $250,000 fine, the conspiracy to commit securities fraud charge carries a maximum penalty of 5 years in prison and a $250,000 fine, and the securities fraud charge carries a maximum penalty of 20 years in prison and a $5,000,000 fine. Sentencing for Hughes is scheduled for March 10, 2026.

The U.S. Securities and Exchange Commission (SEC) also filed a civil complaint against Spotts based on the same and additional conduct and had previously filed a civil complaint against Hughes.

Acting U.S. Attorney and Special Attorney Habba credited special agents of the FBI, under the direction of Special Agent in Charge Wayne A Jacobs, Philadelphia Division, with the investigation leading to today’s charges. She also expressed appreciation for the Securities and Exchange Commission, under the direction of Margaret Ryan, Director, Division of Enforcement.

The government is represented by Assistant U.S. Attorneys Aaron L. Webman of the U.S. Attorney’s Office Economic Crimes Unit in Newark and Martha K. Nye, Attorney-in-Charge of the U.S. Attorney’s Office in Trenton.

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

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Defense Counsel for Spotts: Lee Vartan, Esq.

Newark, N.J. – An Orange County, California resident entered into settlement agreements with the United States resolving allegations that he violated the False Claims Act by paying kickbacks in exchange for the referral of certain prescriptions, Acting U.S. Attorney and Special Attorney Alina Habba announced today.

According to the settlement agreements, Andrew Do owned and operated three mail-order pharmacies in Orange County, California between January 2016 through December 2020. The Government alleges that, during that time, Do paid kickbacks to receive prescriptions for certain compounded topical creams, filled the prescriptions, and then submitted claims to Medicare for reimbursement. According to the Government, Do knew that his payments to induce prescriptions paid for by Medicare violated the Anti-Kickback Statute and caused false claims to be submitted to the Medicare program, all in violation of the False Claims Act.

Under the terms of the settlement agreements, Do will pay $600,000 to the United States. This settlement amount is based on Do’s financial disclosures and his inability to pay.

One of the settlement agreements resolves allegations brought against one of Do’s pharmacies that was filed under the qui tam or whistleblower provisions of the False Claims Act. Under the False Claims Act, private parties can file an action on behalf of the United States and receive a portion of any recovery. Under today’s resolution, the relator in that action, Daniel Toellner, will receive up to $100,000 of the settlement agreement involving Do’s conduct on behalf of one of his pharmacies, Family Care Investments d/b/a Value Pharmacy.

Acting U.S. Attorney and Special Attorney Habba credited special agents of the U.S. Department of Health and Human Services Office of Inspector General, under the direction of Special Agent in Charge Naomi Gruchacz, and U.S. Department of Defense, Office of Inspector General, Defense Criminal Investigative Service, Northeast Field Office, under the direction of Acting Special Agent in Charge Christopher Silvestro, with the investigation.

The government is represented by Assistant U.S. Attorney David V. Simunovich of the U.S. Attorney’s Office, Health Care Fraud & Opioid Abuse Prevention Unit, in Newark.

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

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

The qui tam case is captioned United States ex rel. Toellner v. Apogee Bio-Pharm Corp., et al., Civil Action No. 18-13640 (D.N.J.).

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Counsel for Andrew Do: Vicki Podberesky, Esq., Los Angeles, CA

Counsel for Relator Daniel Toellner: Joseph Callow, Esq., Cincinnati, OH

NEWARK, N.J. – Two New Jersey individuals were charged with conspiracy to unlawfully divert oxycodone, a Schedule II controlled substance, Acting U.S. Attorney and Special Attorney Alina Habba announced.

Michael Kiszka, 60, of East Hanover, New Jersey and Gregory Kubina, 50, of Whiting, New Jersey, were charged by complaint with conspiracy to distribute and possess with intent to distribute oxycodone, in violation of Title 21, United States Code, Section 846. On September 11, 2025, they made their initial appearance in federal court before U.S. Magistrate Judge Jessica S. Allen. The defendants were released on a $100,000 unsecured bond.

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

Kiszka and Kubina engaged in a scheme to obtain high-dosage oxycodone pills from several doctors located in New Jersey and sell those pills to street-level drug users.  Specifically, Kiszka obtained oxycodone pills directly from certain doctors and purchased oxycodone pills that Kubina obtained from other doctors. Beginning around April 2024, Kiszka and Kubina were responsible for diverting over 10,000 oxycodone pills to street-level drug users.

If convicted, each defendant faces a statutory maximum sentence of twenty years in prison and a $1 million fine.

Acting U.S. Attorney and Special Attorney Habba credited special agents, task force officers, and diversion investigators with the Drug Enforcement Administration (DEA) under the direction of Special Agent in Charge Cheryl Ortiz in Newark, New Jersey, with the investigation.

The government is represented by Assistant U.S. Attorneys Kruti D. Dharia and Jake A. Nasar of the Office’s Health Care Fraud and Opioids Abuse Prevention Unit.

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

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Defense counsel:         

Claressa Lowe, Esq., Assistant Federal Public Defender (Gregory Kubina)

Kevin G. Roe, Esq. (Michael Kiszka)

NEWARK, N.J. – A Union County man admitted to receiving and possessing child pornography, Acting U.S. Attorney and Special Attorney Alina Habba announced.

Jack Wilder, 27, of Somerville, New Jersey, pleaded guilty today before U.S. District Judge Jamel K. Semper in Newark federal court to an Information charging him with one count of receipt of child pornography and one count of possession of child pornography.

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

On or about July 23, 2024, Wilder, a teacher at a school in Plainfield, returned from an international trip aboard a flight that landed in New York.  Law enforcement seized Wilder’s cell phone at the airport and subsequently searched it, uncovering images and videos of minors engaging in sexually explicit conduct.  Approximately one week after law enforcement seized his cell phone, Wilder obtained a new cell phone.  From on or about July 29, 2024 through on or about May 1, 2025, Wilder knowingly received images and videos of child pornography on the second cell phone.

The charge of receipt of child pornography carries a mandatory minimum penalty of 5 years in prison, a maximum penalty of 20 years in prison, and a $250,000 fine.  The charge of possession of child pornography carries a maximum potential penalty of 20 years in prison and a $250,000 fine.  Sentencing is scheduled for January 26, 2026.

Acting U.S. Attorney and Special Attorney Habba credited the work of the Department of Homeland Security, Homeland Security Investigations Newark, under the direction of Special Agent in Charge Michael S. McCarthy, with the investigation leading up to this guilty plea.

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

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Defense counsel: Michael Baldassare, Esq.

NEWARK, N.J. – A Passaic County, New Jersey woman admitted that she defrauded the Social Security Administration by improperly obtaining over $144,000.00 in Social Security survivor benefits, Acting U.S. Attorney and Special Attorney Alina Habba announced.

Joan Charnecky, 60, of West Milford, New Jersey, pled guilty on September 10, 2025, before Senior U.S. District Judge Katharine S. Hayden in Newark federal court to an Information charging her with theft of public money.

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

The Social Security Administration provided widow’s insurance benefits to Charnecky’s mother. Those benefits were paid monthly through electronic funds into Charnecky’s mother’s bank account. After Charnecky’s mother died in 2012, Charnecky did not notify the Social Security Administration about her mother’s death, and she made withdrawals of the widow’s insurance benefits for her own personal use. Through an investigation by the Social Security Administration, it was determined that between 2012 and 2022, Charnecky withdrew approximately $144,768.30 in widow’s insurance benefits.  

The charge of theft of public money carries a maximum sentence of 10 years in prison and a fine of up to $250,000. Sentencing is scheduled for January 21, 2026.

Acting U.S. Attorney and Special Attorney Habba credited special agents of the Social Security Administration – Office of the Inspector General, under the direction of Special Agent in Charge Amy Connelly, with the investigation leading to the guilty plea.

The government is represented by Special Assistant U.S. Attorney Keith Abrams of the Narcotics/OCDETF Unit in Newark.

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Defense counsel: Joel Bacher, Esq.

NEWARK, N.J. – A citizen of the Dominican Republic admitted his role in a Paterson, New Jersey, kidnapping, Acting U.S. Attorney and Special Attorney Alina Habba announced.

Joel Ramon Garcia, 33, pleaded guilty on September 9, before U.S. District Judge William J. Martini in Newark federal court to an Indictment charging him with kidnapping.  The sentencing date is scheduled for January 20, 2026.

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

On or about November 15, 2023, Garcia and another individual kidnapped two victims at gun point in Paterson, New Jersey, and then drove the victims to Massachusetts, where they held the victims for ransom.  Shortly after the kidnapping or about November 15, 2023, the kidnappers contacted the father of one of the victims and threatened that the victim’s fingers would be cut off if the ransom was not paid.  The kidnappers ultimately released the victims on or about November 17, 2023.

The charge of kidnapping carries a maximum penalty of life in prison and a maximum fine of $250,000.

Acting U.S. Attorney and Special Attorney Habba credited members of the FBI’s New Jersey field office, under the direction of Special Agent in Charge Stefanie Roddy, with the investigation leading to the charges.  She also thanked members of the FBI’s Boston field office under the leadership of Special Agent in Charge Ted Docks, the Paterson Police Department, under the leadership of Officer in Charge Patrick Murray, members of the Passaic County Sheriff’s Office, under the leadership of Sheriff Thomas Adamo, members of the Clifton Police Department, under the leadership of Police Chief Thomas Rinaldi, members of the Bergen County Prosecutor’s Office, under the leadership of Prosecutor Mark Musella, and members of the Cedar Grove Police Department, under the leadership of Police Chief Francis Pumphrey with their help in the investigation.

The government is represented by Assistant U.S. Attorneys John Maloy of the Organized Crime and Gangs Unit and Carolyn Silane, Deputy Chief of the Economic Crimes Unit in Newark.

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Defense counsel: Michael Rubas, Esq.

Newark, N.J. – A manufacturer and supplier of concrete formwork, shoring and temporary scaffolding systems based in Fair Lawn, New Jersey entered into a settlement agreement with the United States resolving allegations that the company violated the False Claims Act by taking a Paycheck Protection Program (PPP) loan to which it was not entitled, Acting U.S. Attorney and Special Attorney Alina Habba announced.

According to the allegations in the complaint and the contentions of the United States in the settlement agreement:

In January 2021, Ulma Form Works, Inc. (Ulma) applied for and received a $2 million PPP loan.  Under the eligibility rules in effect at that time, businesses with more than 300 employees were not eligible for PPP loans. Applicants were instructed that the 300-employee limit was inclusive of the applicant’s affiliates, including affiliates whose employees were based outside of the United States. In its loan application, Ulma certified that it was eligible for the loan and that it employed no more than 300 employees. However, Ulma was not eligible for its loan because, inclusive of its affiliates and their foreign employees, it had more than 300 employees. After receiving the PPP loan, Ulma sought and received forgiveness of the total amount of the loan, plus interest that had accrued.

Ulma fully cooperated in the investigation and resolution of this matter. In accordance with the terms of the settlement agreement, Ulma will pay the United States $2,902,795. The settlement resolves a lawsuit filed under the whistleblower provision of the False Claims Act, which permits private parties, called relators, to file suit on behalf of the United States for false claims and share in a portion of the government’s recovery. In this matter, the relator is receiving $290,279 as the share.

Acting U.S. Attorney and Special Attorney Habba credited the special agents from the Small Business Administration, Office of the Inspector General under the direction of Special Agent in Charge Amaleka McCall-Brathwaite, Eastern Regional Office, and the SBA’s Office of General Counsel for their assistance in this matter.

The government is represented by Assistant U.S. Attorney David V. Simunovich of the Health Care Fraud and Opioid Enforcement Unit in Newark.

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

The qui tam case is captioned United States ex rel. Verity Investigations, LLC v. Ulma Form Works, Inc., 25-890 (D.N.J.).

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Counsel for Ulma Form Works, Inc.: Mark A. Rush, Esq., Pittsburgh, PA

Counsel for Relator Verity Investigations, LLC: Steven M. Shepard, Esq., New York, NY

A complaint filed in the District of New Jersey was unsealed today charging Thalha Jubair, a United Kingdom national, with conspiracies to commit computer fraud, wire fraud, and money laundering, in relation to at least 120 computer network intrusions and extortion involving 47 U.S. entities. The complaint alleges victims paid at least $115,000,000 in ransom payments.

“Jubair is alleged to have participated in a sweeping cyber extortion scheme carried out by a group known as Scattered Spider, which committed at least 120 attacks worldwide and resulted in over $115 million in ransom payments from victims,” said Acting Assistant Attorney General Matthew R. Galeotti of the Justice Department’s Criminal Division. “These malicious attacks caused widespread disruption to U.S. businesses and organizations, including critical infrastructure and the federal court system, highlighting the significant and growing threat posed by brazen cybercriminals. These charges underscore the Department’s unwavering commitment to keeping pace with technologically savvy bad actors and holding accountable those who seek to profit from ransomware.”

“The charges against Jubair announced today are the result of a lengthy investigation into particular cyber threat actors, often referred to as Scattered Spider, who have victimized at least 47 U.S.-based entities, including in New Jersey,” said Alina Habba, Acting U.S. Attorney and Special Attorney for the District of New Jersey. “As alleged by the complaint, Jubair went to great and sophisticated lengths to keep himself anonymous while he and his criminal associates continued to attack these victims and extort tens of millions of dollars in ransom payments. But thanks to the relentless investigation of this Office and our FBI and CCIPS partners, Jubair could not remain anonymous and avoid justice indefinitely. Today’s charges demonstrate my Office’s determination to identify cybercriminals and bring them to justice, wherever they are in the world.”

“Today’s charges make it clear that no cybercriminal is beyond our reach,” said Assistant Director Brett Leatherman of the FBI’s Cyber Division. “If you attack American companies or citizens, we will find you, we will expose you, and we will seek justice. The FBI continues to deploy every investigative and technical resource available to dismantle criminal cyber networks and hold their members accountable. This means working with trusted international partners like the UK’s National Crime Agency, the West Midlands Police, and the City of London Police, as well as utilizing the capabilities of our state and local partners, who are valued members of FBI’s Cyber Task Forces.”

“The arrest of Thalha Jubair underscores an undeniable truth: no matter how elusive or destructive these cyber-criminal syndicates are, we will continue to pursue those who allegedly extort our businesses and ensure they are held accountable,” said Special Agent in Charge Stefanie Roddy for the FBI. Today’s charges in both the U.S. and U.K. reflect extraordinary coordination with our foreign and industry partners and mark a decisive victory against cybercriminal gangs who thought they could cripple American industries, inflict hundreds of millions in losses, and hide behind a screen without consequence. The FBI remains relentless in protecting Americans and American businesses — detecting, deterring and diminishing the impact of cyber-criminal gangs.”

According to the complaint, Thalha Jubair, also known as “EarthtoStar,”  “Brad,” “Austin,” and “@autistic,” 19, of London, England, conspired with others to use social engineering techniques to gain unauthorized access into the computer networks of U.S. companies, steal and encrypt information, and demand ransom payments from victims in exchange for  regaining control and preventing the dissemination of the exfiltrated data. Jubair also conspired with others to launder the funds obtained through this scheme. In October 2024 and January 2025, Jubair participated in a scheme to gain unauthorized access to the networks of a U.S.-based critical infrastructure company and the U.S. Courts.

From as early as May 2022 to as recently as September 2025, Jubair and his associates were involved in approximately 120 network intrusions, including accessing the computer networks of at least 47 U.S.-based victims. Collectively, victims paid more than $115 million to Jubair and his associates in efforts to recover their data and prevent its disclosure. Portions of the ransom payments from at least five victims were sent to wallets on a server controlled by Jubair. In July 2024, while law enforcement was seizing that server — including successfully seizing cryptocurrency worth approximately $36 million at the time of the seizure — Jubair transferred a portion of cryptocurrency that originated from one of the victims, worth approximately $8.4 million at the time, to another wallet.

The charges arise out of an investigation into a cyber threat group that has been referred to as “Scattered Spider,” “Octo Tempest,” “UNC3944,” and/or “0ktapus.” Scattered Spider has targeted victims throughout the United States, including in New Jersey.

Jubair is charged with computer fraud conspiracy, two counts of computer fraud, wire fraud conspiracy, two counts of wire fraud, and money laundering conspiracy. If convicted, he faces a maximum penalty of 95 years in prison.

On Tuesday, Sept. 16, U.K. authorities arrested Jubair and a second individual in connection with a separate U.K. investigation related to a computer intrusion that targeted U.K. critical infrastructure.

The FBI’s Newark Field Office is investigating the case. The United Kingdom’s National Crime Agency and the City of London Police, the United Kingdom’s West Midlands Police, the National Police of the Netherlands, the Dutch Prosecutor’s Office, the Romanian Directorate for Investigating Organized Crime and Terrorism, Brigade for Combating Organized Crime Targu Mures, Romanian National Police, Directorate for Combating Organized Crime, the Royal Canadian Mounted Police, and the Australian Federal Police have provided significant assistance.

Assistant Deputy Chief Adrienne L. Rose and Trial Attorney George S. Brown of the Justice Department’s Computer Crime and Intellectual Property Section (CCIPS) and Assistant U.S. Attorney Andrew Kogan for the District of New Jersey’s Cybercrime Unit are prosecuting the case. The Justice Department’s Office of International Affairs provided significant assistance.

CCIPS investigates and prosecutes cybercrime in coordination with domestic and international law enforcement agencies, often with assistance from the private sector. Since 2020, CCIPS has secured the conviction of over 180 cybercriminals, and court orders for the return of over $350 million in victim funds.

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

NEWARK, N.J. – A complaint filed in the District of New Jersey was unsealed today charging Thalha Jubair, a United Kingdom national, with conspiracies to commit computer fraud, wire fraud, and money laundering, in relation to at least 120 computer network intrusions and extortion involving 47 U.S. entities. The complaint alleges victims paid at least $115,000,000 in ransom payments.

“The charges against Jubair announced today are the result of a lengthy investigation into particular cyber threat actors, often referred to as Scattered Spider, who have victimized at least 47 U.S.-based entities, including in New Jersey,” said Alina Habba, Acting U.S. Attorney and Special Attorney for the District of New Jersey. “As alleged by the complaint, Jubair went to great and sophisticated lengths to keep himself anonymous while he and his criminal associates continued to attack these victims and extort tens of millions of dollars in ransom payments. But thanks to the relentless investigation of this Office and our FBI and CCIPS partners, Jubair could not remain anonymous and avoid justice indefinitely. Today’s charges demonstrate my Office’s determination to identify cybercriminals and bring them to justice, wherever they are in the world.”

“Jubair is alleged to have participated in a sweeping cyber extortion scheme carried out by a group known as Scattered Spider, which committed at least 120 attacks worldwide and resulted in over $115 million in ransom payments from victims,” said Acting Assistant Attorney General Matthew R. Galeotti of the Justice Department’s Criminal Division. “These malicious attacks caused widespread disruption to U.S. businesses and organizations, including critical infrastructure and the federal court system, highlighting the significant and growing threat posed by brazen cybercriminals. These charges underscore the Department’s unwavering commitment to keeping pace with technologically savvy bad actors and holding accountable those who seek to profit from ransomware.”

“Today’s charges make it clear that no cybercriminal is beyond our reach,” said Assistant Director Brett Leatherman of the FBI’s Cyber Division. “If you attack American companies or citizens, we will find you, we will expose you, and we will seek justice. The FBI continues to deploy every investigative and technical resource available to dismantle criminal cyber networks and hold their members accountable. This means working with trusted international partners like the UK’s National Crime Agency, the West Midlands Police, and the City of London Police, as well as utilizing the capabilities of our state and local partners, who are valued members of FBI’s Cyber Task Forces.”

“The arrest of Thalha Jubair underscores an undeniable truth: no matter how elusive or destructive these cyber-criminal syndicates are, we will continue to pursue those who allegedly extort our businesses and ensure they are held accountable,” said Special Agent in Charge Stefanie Roddy for the FBI. Today’s charges in both the U.S. and U.K. reflect extraordinary coordination with our foreign and industry partners and mark a decisive victory against cybercriminal gangs who thought they could cripple American industries, inflict hundreds of millions in losses, and hide behind a screen without consequence. The FBI remains relentless in protecting Americans and American businesses — detecting, deterring and diminishing the impact of cyber-criminal gangs.”

According to the complaint, Thalha Jubair, also known as “EarthtoStar,”  “Brad,” “Austin,” and “@autistic,” 19, of London, England, conspired with others to use social engineering techniques to gain unauthorized access into the computer networks of U.S. companies, steal and encrypt information, and demand ransom payments from victims in exchange for  regaining control and preventing the dissemination of the exfiltrated data. Jubair also conspired with others to launder the funds obtained through this scheme. In October 2024 and January 2025, Jubair participated in a scheme to gain unauthorized access to the networks of a U.S.-based critical infrastructure company and the U.S. Courts.

From as early as May 2022 to as recently as September 2025, Jubair and his associates were involved in approximately 120 network intrusions, including accessing the computer networks of at least 47 U.S.-based victims. Collectively, victims paid more than $115 million to Jubair and his associates in efforts to recover their data and prevent its disclosure. Portions of the ransom payments from at least five victims were sent to wallets on a server controlled by Jubair. In July 2024, while law enforcement was seizing that server — including successfully seizing cryptocurrency worth approximately $36 million at the time of the seizure — Jubair transferred a portion of cryptocurrency that originated from one of the victims, worth approximately $8.4 million at the time, to another wallet.

The charges arise out of an investigation into a cyber threat group that has been referred to as “Scattered Spider,” “Octo Tempest,” “UNC3944,” and/or “0ktapus.” Scattered Spider has targeted victims throughout the United States, including in New Jersey.

Jubair is charged with computer fraud conspiracy, two counts of computer fraud, wire fraud conspiracy, two counts of wire fraud, and money laundering conspiracy. If convicted, he faces a maximum penalty of 95 years in prison.

On Tuesday, September 16, U.K. authorities arrested Jubair and a second individual in connection with a separate U.K. investigation related to a computer intrusion that targeted U.K. critical infrastructure.

The FBI’s Newark Field Office is investigating the case. The United Kingdom’s National Crime Agency and the City of London Police, the United Kingdom’s West Midlands Police, the National Police of the Netherlands, the Dutch Prosecutor’s Office, the Romanian Directorate for Investigating Organized Crime and Terrorism, Brigade for Combating Organized Crime Targu Mures, Romanian National Police, Directorate for Combating Organized Crime, the Royal Canadian Mounted Police, and the Australian Federal Police have provided significant assistance.

Assistant U.S. Attorney Andrew Kogan for the District of New Jersey’s Cybercrime Unit and Assistant Deputy Chief Adrienne L. Rose and Trial Attorney George S. Brown of the Justice Department’s Computer Crime and Intellectual Property Section (CCIPS) are prosecuting the case. The Justice Department’s Office of International Affairs provided significant assistance.

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

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NEWARK, N.J. – Three members of a drug trafficking organization associated with the Sex, Money, Murder subset of the Bloods street gang street gang were each sentenced to 108 months in prison, Acting United States Attorney and Special Attorney Alina Habba announced.

Jerry Ross, a/k/a “Molly” (“Je. Ross”), age 47, Luis Delvalle, a/k/a “Lou” (“Delvalle”), age 42, and Joseph Ross, a/k/a “Rock” (“Jo. Ross”), age 43, each previously pleaded guilty before United States District Judge Susan D. Wigenton to Informations that charged each of them with conspiracy to distribute large amounts of fentanyl, cocaine and heroin. Jo. Ross also pleaded guilty to possession of a firearm by a convicted felon. Je. Ross was the leader of the drug trafficking organization, and Delvalle was a manager and supplier. All three received sentences of 108 months in prison.

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

The Ross brothers, Delvalle, and their co-conspirators are all members and associates of a drug trafficking organization that operated an open-air narcotics market in and around the area of West 3rd Street in Plainfield, New Jersey (“West 3rd Street”). The West 3rd Street drug trafficking organization is affiliated with, and the defendants are members and associates of, the Sex, Money, Murder subset of the Bloods street gang.   For several months, law enforcement conducted extensive surveillance of the area, conducted numerous controlled purchases of narcotics, and analyzed telephone records, all of which demonstrated extensive interactions related to drug trafficking between and among the members of the conspiracy. Following the execution of search warrants and arrests of the defendants, law enforcement recovered multiple firearms, controlled substances including fentanyl, and supplies to package and distribute those drugs on the street.

All co-conspirators charged in the case, including Je. Ross, Delvalle, Jo. Ross, Pernell White, 37, Jaquay Bell, 36, Andre Gaddy, 32, Jacob Douglas, 43, Tarrell Strond, 43 and Tayeire Thomas, 27, all of New Jersey, have also pled guilty to conspiracy to distribute fentanyl, heroin, and cocaine. Thomas was sentenced to 48 months in prison and Strond was sentenced to 36 months in prison. The remaining defendants are set to be sentenced in the coming weeks.

“These sentences confirm our commitment to eradicating the Bloods and all violent criminal street gangs throughout New Jersey. For too long, this gang plagued the residents of Plainfield with a scourge of drugs, primarily deadly fentanyl, weaponizing addiction for their own personal gain. Every law-abiding citizen deserves to feel safe in their neighborhoods and free from gangs infiltrating their communities,” said Acting United States Attorney and Special Attorney Habba.  “My office is committed to our long-standing partnerships with federal, state, and local law enforcement to eliminate gangs like the Sex Money Murder set of the Bloods, wherever they attempt to gain a foothold. Let these sentences serve as a clear message that if you engage in gang activity, we will find you, dismantle your operation, and prosecute you.”

“These sentencings send a clear message: violent criminals who poison our communities with dangerous drugs will be held accountable,” said HSI Newark Special Agent in Charge Michael S. McCarthy. “These convictions are the product of a relentless two-year investigation into a drug trafficking network that put New Jersey families and the American public at risk. As additional defendants await sentencing, HSI remains steadfast in tearing down criminal organizations and protecting the safety of our neighborhoods.”

Acting United States Attorney Habba credited special agents of Homeland Security Investigations in Newark under the direction of Special Agent in Charge Michael McCarthy, detectives of the Union County Prosecutor’s Office, under the direction of Prosecutor William Daniel and Chief Harvey A. Barnwell, and officers of the Plainfield Police Department under the direction of Director James Abney and Captain Brian Newman, with the investigation leading to the charges. She also thanked agents with United States Customs and Border Protection for the Port of New York/New Jersey under the direction of Port Director TenaVel Thomas, and officers of Perth Amboy Police Department under the direction of Chief Lawrence Catano, for their assistance with the investigation.

The government is represented by Assistant United States Attorneys Jason Goldberg of the Organized Crime and Gangs Unit and Rachelle M. Navarro of the Bank Integrity, Money Laundering and Recovery Unit in Newark.

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NEWARK, N.J. B Acting U.S. Attorney and Special Attorney Alina Habba announced today that a government contractor based out of Bayonne, New Jersey, will pay $4,043,810.56 to resolve allegations that it improperly employed unauthorized aliens to work on Navy ships.

The settlement resolves allegations that, from May 2017 through December 2020, Bayonne Drydock and Repair Corporation (“Bayonne Drydock”) utilized multiple subcontractors that were owned and/or controlled by Bayonne Drydock’s Risk Manager to perform work on government contracts, and that those subcontractors were employing individuals who were not authorized to work in the United States.  Following a notice that one of the subcontractors was employing unauthorized workers, Bayonne Drydock’s Risk Manager purportedly terminated that employee, but that same month took affirmative steps to assist another subcontractor to employ unauthorized aliens, who continued to work on Navy ships. Bayonne Drydock’s Risk Manager previously pleaded guilty to a criminal charge of knowingly hiring and continuing to employ unauthorized aliens. In total, Bayonne Drydock was alleged to have employed approximately 52 unauthorized aliens on government contracts.

Acting U.S. Attorney and Special Attorney Habba credited the United States Department of Homeland Security, Homeland Security Investigations, Newark Field Office under the direction of Special Agent in Charge Michael McCarthy, and the Department of Defense, Office of Inspector General, Defense Criminal Investigative Service, Northeast Field Office, under the direction of Special Agent in Charge Christopher Silvestro for the investigation of the allegations against Bayonne Drydock.   

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

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Defense Counsel: Matthew Beck, Esq., Chiesa, Shahinian and Giantomasi, Roseland, New Jersey.  

NEWARK, N.J. – A former Essex County Sheriff’s Officer admitted to his role in a bank fraud conspiracy, United States Attorney Alina Habba announced.

Ryan L. Terry, 32, of Piscataway, pleaded guilty on September 11, 2025, before U.S. District Court Judge Esther Salas to an Information charging him with one count of conspiracy to commit bank fraud and one count of bank fraud.    

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

Terry, who served as a police officer with the Orange Police Department at the time he conspired to commit bank fraud, was part of a multi-person operation that stole checks from the mail, deposited those checks into bank accounts controlled by the enterprise, and then withdrew the proceeds before the bank or the victims became aware of the illegal activity.

For example, in June 2023, Company-1 mailed out a business check for over $50,000. That check was stolen and thereafter the payee information was altered to enable it to be deposited into an account controlled by Terry and his co-conspirators. Then in July 2023, after the stolen check cleared, Terry and his co-conspirators withdrew the money from the account and split the proceeds.   

Terry then continued to actively recruit other members to the conspiracy. Specifically, he recruited individuals who had long-standing bank accounts to continue the scheme of depositing stolen checks and withdrawing the funds before the bank or the victims of the stolen checks were aware of the fraud. 

The bank fraud conspiracy and the bank fraud charges both carry a maximum penalty of 30 years in prison and a maximum fine of $1,000,000. Sentencing is scheduled for January 21, 2026.

U.S. Attorney Habba credited special agents of the Federal Bureau of Investigation, under the direction of Special Agent in Charge Stefanie Roddy in Newark, and the New Jersey State Police, under the direction of Colonel Patrick J. Callahan, with the investigation. 

The government is represented by Assistant U.S. Attorney Casey S. Smith of the U.S. Attorney’s Office Criminal Division and Thomas S. Kearney of the U.S. Attorney’s Office Special Prosecutions Division in Newark.

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Defense counsel: Charles Simmons, Esq., East Orange, New Jersey.      

TRENTON, N.J. – An owner of several New Jersey businesses was sentenced yesterday to 41 months in prison for fraudulently obtaining over $3.2 million in federal Paycheck Protection Program (PPP) loans, Acting U.S. Attorney and Special Attorney Alina Habba announced.

Daniel Dadoun, 49, of Israel, formerly of South Plainfield, New Jersey, pleaded guilty before U.S. District Judge Robert Kirsch in Trenton federal court on April 8, 2025, to an Information charging him with bank fraud and money laundering.  U.S. District Judge Robert Kirsch imposed the sentence yesterday in Trenton federal court.

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

From April 2020 through August 2022, Dadoun engaged in a scheme to illegally obtain over $3.2 million in PPP loans for his New Jersey businesses by submitting false and fraudulent loan applications. After receiving the PPP loan proceeds, Dadoun sought to keep the money by submitting false and fraudulent PPP loan forgiveness applications that misrepresented payroll expenses and the number of employees working at his companies.  In support of the loan and loan forgiveness applications, Dadoun submitted falsified tax documents and altered bank statements.

In addition to the prison term, Judge Kirsch sentenced Dadoun to three years’ supervised release and ordered restitution of $3,239,773.

Acting U.S. Attorney and Special Attorney Habba credited special agents of Homeland Security Investigations Newark, under the direction of Special Agent in Charge Michael S. McCarthy, special agents of IRS – Criminal Investigation, New York Field Office, under direction of Special Agent in Charge Harry T. Chavis, Jr., special agents of the Social Security Administration – Office of the Inspector General, Boston New York Field Division, under the direction of Special Agent in Charge Amy Connelly, and special agents of the U.S. Attorney’s Office for the District of New Jersey, under the direction of Special Agent in Charge Thomas Mahoney, with the investigation leading to the sentencing.

The government is represented by Assistant U.S. Attorney Katherine M. Romano of the U.S. Attorney’s Office Health Care Fraud Unit in Newark.

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

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

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Defense counsel: Anthony J. Pope, Jr., Esq.

TRENTON, N.J. – An Ocean County man admitted to traveling to a foreign place to engage in sexual conduct with a minor, Acting U.S. Attorney and Special Attorney Alina Habba announced.

Jacob Bauer, 29, of Toms River, pleaded guilty before U.S. District Judge Robert Kirsch to a one-count Information charging him with engaging in illicit sexual conduct in a foreign place.

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

From December 1, 2023 through December 10, 2023, Bauer, then 27 years old, traveled from the United States to Norway to engage in sexual activity with a 14-year-old female. Once in Norway, Bauer, staying at a hotel, engaged in sexual activity with the victim. After returning to the United States, Bauer communicated over social media platforms with the victim and others about his sexual activities with the victim. During those conversations, Bauer acknowledged the victim’s age and status as a minor. After members of an online community that Bauer was active in learned of his sexual activities with a minor, Bauer was “doxxed” (his public information published online) by members of that community.

The charge of engaging in illicit sexual conduct in a foreign place carries a potential maximum penalty of 30 years in prison and a fine of up to $250,000. Sentencing is scheduled for January 21, 2026.

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

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

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

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

TRENTON, N.J. – A Somerset County man admitted to distributing fentanyl and cocaine resulting in the deaths of four individuals, Acting U.S. Attorney and Special Attorney Alina Habba announced today.

Mauricio Gutierrez, 52, of Somerset, New Jersey, pleaded guilty before U.S. District Judge Zahid N. Quraishi today in Trenton federal court, to a four-count Information charging him with two counts of distribution and possession with intent to distribute fentanyl, and two counts of possession with intent to distribute cocaine.

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

On the evening of June 22, 2022, Gutierrez distributed fentanyl on two separate occasions from his personal residence in Somerset, New Jersey which resulted in the deaths of four individuals.  On September 27, 2023, Gutierrez was arrested by law enforcement and found to be in possession of cocaine that was stored in both his private vehicle and personal residence. Gutierrez admitted that even after becoming aware of the deaths of the four individuals in 2022, he intended to distribute the cocaine that was located by law enforcement at a later date.

Each of the four counts is punishable by a maximum of 20 years in prison, and the sentence of each count may run consecutively. Each count also carries a potential fine of the greater of $1,000,000, or twice the gross profits or other proceeds for the offense, and the defendant must be sentenced to a term of supervised release after any term of imprisonment imposed.

Sentencing is scheduled for January 13, 2026.

Acting U.S. Attorney and Special Attorney Habba credited special agents of Homeland Security Investigations Newark, under the direction of Acting Special Agent in Charge Michael McCarthy, with the investigation leading to the charges. He also thanked the North Brunswick Department, under the direction of Chief Joe Battaglia, and Franklin Township Police Department, under the direction of Public Safety Director Quovella Maeweather, for their assistance.

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

The investigations leading to these charges is part of Organized Crime Drug Enforcement Task Force’s (OCDETF) operations. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.

The government is represented by Assistant U.S. Attorneys Vincent D. Romano and Christopher Fell of the Criminal Division in Newark.

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Defense counsel: Anthony Pope, Esq. and Joseph Alter. Esq.

NEWARK, N.J. – A Florida man was sentenced to prison for laundering the proceeds of a health care fraud and kickback scheme involving durable medical equipment (DME) that caused millions of dollars in losses to Medicare and other insurance providers, Acting U.S. Attorney and Special Attorney Alina Habba announced.

Thomas Farese, 83, of Fort Lauderdale, Florida, was sentenced to 24 months in prison followed by 6 months of home confinement. Farese previously pleaded guilty before U.S. District Judge Michael E. Farbiarz to a Superseding Information charging him with money laundering.

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

Farese invested in a DME supply company that was owned and operated by Aaron Williamsky, Nadia Levit, and others involved in a large-scale health care fraud and kickback scheme that involved billing Medicare and other insurers for DME—including orthotic knee, elbow, and back braces—that the receiving patients did not want or need. In April 2019, Williamsky, Levit, and others were arrested and charged for their roles in the scheme. Farese learned of their arrests and fraudulent conduct shortly thereafter and communicated about it with his business partner, Patsy Truglia, who has been convicted for his role in the scheme. Farese then received into his bank account $495,000 in proceeds of the scheme.

In addition to the prison term, Judge Farbiarz sentenced Farese to three years of supervised release (including the 6 months of home confinement) and to pay $1,314,000 in restitution to the victims. Judge Farbiarz also ordered forfeiture of $495,000, which constituted proceeds of the health care fraud scheme.

Acting U.S. Attorney and Special Attorney Habba credited special agents of the Federal Bureau of Investigation, Newark Field Office, under the direction of Special Agent in Charge Stefanie Roddy; the Department of Health and Human Services, Office of Inspector General, under the direction of Special Agent in Charge Naomi Gruchacz; and the Department of Defense, Defense Criminal Investigative Service, under the direction of Christopher Silvestro, with the investigation.

The government is represented by Assistant U.S. Attorney Jessica R. Ecker of the Health Care Fraud & Opioids Abuse Prevention Unit in Newark and Darren C. Halverson, Acting Assistant Chief of the Criminal Division’s Fraud Section.

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Defense counsel: James R. Froccaro, Esq.

NEWARK, N.J. – A Middlesex County, New Jersey man was arrested on August 27, 2025, for allegedly sending obscene material to a minor knowing that the minor was under the age of 16, Acting U.S. Attorney and Special Attorney Alina Habba announced.

Mahir Chaudhry, 21, of Piscataway, New Jersey is charged by complaint with one count of transferring obscene material to a minor. Chaudhry appeared on August 28, 2025, before U.S. Magistrate Judge André M. Espinosa in Newark federal court and was detained pending approval of certain bail conditions.

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

Between in or around March 2023 and May 2023, Chaudhry sent a minor victim at least six obscene images via text message at a time when Chaudhry knew the victim was younger than 16 years of age.

The charge of transferring obscene material to a minor is punishable by a maximum potential penalty of 10 years in prison, and a $250,000 fine.

“The defendant’s arrest is a testament to the combined work of the U.S. Attorney’s Office and our law enforcement partners to protect the people of New Jersey from individuals who prey on minor victims—no matter where the victims are located." 

- Acting U.S. Attorney and Special Attorney Alina Habba

“Chaudhry’s arrest is impactful on many fronts. He can no longer cause harm to minor victims, as the complaint alleges, and his arrest serves as a warning to others who think their actions are unseen. The FBI and our partners will stop at nothing to find and apprehend these predators,” SAC Stefanie Roddy, FBI Newark said.

Acting U.S. Attorney and Special Attorney Habba credited special agents of the FBI’s Child Exploitation Operational Unit, under the direction of Special Agent in Charge Stefanie Roddy, with the investigation leading to the charges.  She also thanked the FBI Newark’s Child Exploitation and Human Trafficking Task Force, the Middlesex County Prosecutor’s Office, and international partners for their assistance.

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

The government is represented by Assistant U.S. Attorney John Maloy of the Organized Crime and Gangs Unit in Newark.

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

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Defense counsel: Timothy Donahue, Esq.

TRENTON, N.J. – A Maryland man was arrested and charged with trafficking in firearms in Ocean County, New Jersey, Acting U.S. Attorney and Special Attorney Alina Habba announced.

Luiz Vargas, a/k/a, “El Biggie,” 25, of Upper Marlboro, Maryland, was charged by criminal complaint with one count of trafficking in firearms. Vargas made his initial appearance before U.S. Magistrate Judge Tonianne J. Bongiovanni in Trenton federal court on August 11, 2025 and was detained.

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

Beginning in January 2025, law enforcement began investigating Vargas for trafficking firearms into New Jersey from, among other places, Texas and Maryland. Using a confidential source acting at the direction and supervision of law enforcement, officers conducted four controlled purchases of firearms, which yielded a total of eight firearms: two semiautomatic rifles and six handguns. Two of the handguns were reported stolen out of Texas and Colorado, respectively, and the two semiautomatic rifles had no serial numbers or other identifiable markings on them. On at least one occasion, Vargas provided cocaine to the confidential source after being unable to follow through with a promised sale of firearms. Vargas has never held a federal license to deal or manufacture firearms.

The firearms trafficking charge carries a maximum potential penalty of 15 years in prison and a fine of up to $250,000.

Acting U.S. Attorney and Special Attorney Habba credited special agents with the Federal Bureau of Investigation, under the direction of Special Agent in Charge Stefanie Roddy in Newark, with the investigation leading to the charges. She also thanked the United States Immigration and Customs Enforcement, Enforcement and Removal Operations Newark, under the direction of Field Office Director Ruben Perez, the Howell Township Police Department, under the direction of Chief of Police John Storrow, the Ocean County Sheriff’s Office, under the direction Sheriff Michael G. Mastronardy, the Asbury Park Police Department, under the direction of Deputy Chief of Police Guy Thompson, the Freehold Borough Police Department, under the Direction of Chief of Police Chris Colaner, the Lakewood Police Department, under the direction of Chief of Police Gregory H. Meyer, the Little Silver Police Department, under the direction of Chief of Police Paul Halpin, the Marlboro Police Department, under the direction of Chief of Police Peter Pezzullo, the Middletown Police Department, under the direction of Chief of Police R. Craig Weber, the Monroe Police Department, under the direction of Chief of Police Griffin N. Banos, and the Wall Police Department, under the direction of Chief of Police Sean O’Halloran, for their assistance in the investigation.

The government is represented by Special Assistant U.S. Attorney Jonathan S. Garelick 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 presumed innocent unless and until proven guilty.

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

NEWARK, N.J. – The last of four individuals charged with escaping from an Immigration and Customs Enforcement detention facility in Newark, New Jersey, has been arrested and had his initial appearance in the United States District Court for the District of New Jersey, Acting U.S. Attorney Alina Habba announced.

Andres Felipe Pineda Mogollon, 25, of Colombia, was charged by complaint on June 13, 2025, with escape from the custody of an institution or officer.  In separate complaints, Franklin Norberto Bautista Reyes, 20, of Honduras, Joan Sebastian Castaneda Lozada, 18, of Colombia, and Joel Enrrique Sandoval-Lopez, 22, of Honduras, were each charged with the same offense in connection with the same escape.

According to documents filed in this case, each defendant was detained at Delaney Hall, a privately owned detention center in Newark, New Jersey, pending immigration removal proceedings.  On or about June 12, 2025, the defendants fled the facility by breaking through an aluminum second-story wall, dropping mattresses through the opening in the wall to provide a landing place on which to jump, and utilizing bed sheets to cover barbed wire in order to climb over the fence.

Castaneda Lozada, Sandoval-Lopez, and Bautista Reyes were each apprehended in New Jersey between June 15 and 16, 2025.  Pineda Mogollon was apprehended on July 17, 2025, in Los Angeles, and appeared in court on August 18, 2025, in Court before the Honorable Michael A. Hammer, United States Magistrate Judge.

Each defendant faces a maximum penalty of one year imprisonment and a $100,000 fine.

Acting U.S. Attorney Habba credited special agents of the Federal Bureau of Investigation, under the direction of Special Agent in Charge Stefanie Roddy in the Newark Field Office and Assistant Director in Charge Akil Davis in the Los Angeles Field Office; officers of the United States Immigration and Customs Enforcement, under the direction of Acting Director Todd M. Lyons; and officers of Homeland Security Investigations, under the direction of Special Agent in Charge Ricky Patel, with the investigation.

The government is represented by Assistant U.S. Attorney Michael A. Hardin of the Public Protection Task Force in Newark.

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

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Defense counsel: Stephen Turano, Esq.

NEWARK, N.J. – A former Senior Aide to the Mayor of Newark pleaded guilty to conspiracy to commit honest services fraud, Acting U.S. Attorney and Special Attorney Alina Habba announced.

Al-Tarik Onque, 49, of East Orange, New Jersey pleaded guilty before U.S. District Judge William J. Martini to an Information charging him with conspiracy to commit honest services fraud.

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

Onque previously worked as a Senior Aide to the Mayor of Newark.  As a Senior Aide, Onque primarily responded to constituent complaints, performed constituent services, and worked with organizations in the community.

Onque used his official position in the City of Newark to solicit individuals seeking Certificate of Code Compliance (“CCCs”) or Certificate of Occupancy (“COs”) and to offer them expeditated acquisition of those documents in exchange for payments of cash bribes.  Onque and others induced these individuals to pay cash bribes in connection with multiple properties in or around Newark

Under City of Newark regulations, a CCC had to be obtained from the Newark Department of Engineering, Office of Inspections and Enforcement before certain changes of occupancy; and property owners had to obtain a CO, sometimes referred to as a Certificate of Continued Occupancy (a “CCO”) to ensure a building or premises satisfied Newark code requirements.

The charge of conspiracy to commit honest service fraud carries a maximum potential penalty of 20 years in prison and a $250,000 fine. Sentencing is scheduled for January 15, 2026.

Acting U.S. Attorney and Special Attorney Habba credited special agents of Federal Bureau of Investigation, under the direction of Special Agent in Charge Stefanie Roddy in Newark, with the investigation leading to the guilty plea.

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

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Defense Counsel: Ernesto Cerimele, Esq., Newark, New Jersey

Newark, N.J. – Nineteen members and associates of the Jersey City gang associated with the Salem Lafayette Housing Complex were charged by Complaint for their roles in an expansive drug trafficking conspiracy, Acting U.S. Attorney and Special Attorney Alina Habba announced today.

The Complaint charges Isaiah West, a/k/a “Snoop,” a/k/a “Bandz,” 22, of Jersey City, Jamantay Gaines, a/k/a “D-Rose,” 28, of Jersey City, Curtis Felder, a/k/a “Cee Grizzley,” 26, of Jersey City, Dorian Garrett, a/k/a “Nero,” 21, of New York City, William Washington, a/k/a “OnSight,” 23, of Jersey City, Aamir Thomas, a/k/a “Mir,” 23, of Jersey City, Nareef Frimpong, a/k/a “Huncho,” 24, of Jersey City, Reakwon Harvey, 28, of Jersey City, Pedro Torres, 21, of Jersey City, Najon Pettiford, a/k/a “Na,” 23, of Jersey City, Desmar Rivers, a/k/a “Pacman,” 26 of Jersey City, Stephon Turner, 26, of Jersey City, Tyler Thornton, 30, of Jersey City, Christopher Maldonado, a/k/a “G Chris,” 18, of Jersey City, Keiyan Golden, a/k/a “Kevin Council,” 48, of Jersey City, Cornell Bell, 49 of Jersey City, Serge Rodriguez, 29, of Jersey City, Gerard Crawford, a/k/a “Jason Reed,” 51, of Jersey City, and Alfred Reaves, 56, of Jersey City. 

Today’s charges and arrests are the result of a long-running wiretap investigation led by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration, the Hudson County Prosecutor’s Office, the Jersey City Police Department, and the U.S. Attorney’s Office. The charges include conspiracy to distribute 40 grams or more of fentanyl, 28 grams or more of cocaine base, and quantities of heroin, cocaine, PCP, and other narcotics including various prescription pills.

The 16 defendants arrested today are scheduled to have their initial court appearances this afternoon before U.S. Magistrate Judge José R. Almonte in Newark federal court. One defendant was already in custody on state charges, and 2 defendants remain at large.

“These defendants are charged with operating a drug trafficking organization that poisoned the community of Jersey City with their distribution of fentanyl, crack cocaine, PCP, and several other narcotics. Today’s arrests and charges mark another strike in our relentless war against the deadly narcotics and ruthless street gangs that infest and terrorize our communities. We will not rest until every drug trafficker and violent offender is held accountable and removed from our streets.”

- Acting U.S. Attorney and Special Attorney Alina Habba

“This investigation and charges are a testament to the combined efforts of law enforcement and underscores the resolve of ATF and our federal, state, and local partners. Drug trafficking and the heinous criminal acts associated with violent criminal organizations have an insidious impact on the public and tear apart the fabric of our communities. We will continue to use all the tools at our disposal, throughout the state of New Jersey and across the U.S., to combat violence, drug distribution, and the illegal possession of firearms to safeguard the safety and well-being of all,” stated ATF Special Agent in Charge L.C. Cheeks.

“DEA New Jersey continues to work with our federal, state and local law enforcement partners in targeting those drug trafficking organizations and their members who are responsible for the trafficking of cocaine, heroin, fentanyl, methamphetamine, and firearms in our communities” stated DEA New Jersey Special Agent in Charge Cheryl Ortiz. “As we have seen, many of these individuals use violence to conduct their illicit drug and gun trafficking business which often has senseless and deadly consequences.  The DEA remains committed to protecting our communities and saving lives.”

“Today’s arrests are a testament to the collaborative work of law enforcement. Every illegal drug removed from the streets helps ensure the safety of our community,” stated Acting Prosecutor Wayne Mello. “The Hudson County Prosecutor’s Office is committed to continuing this joint effort to rid our community of dangerous drugs.”

“Today, as part of our Violent Crime Initiative with the U.S. Attorney’s Office, a coordinated operation with the Jersey City Police Department, ATF, and federal partners resulted in multiple arrests along with the recovery of suspected CDS and illegal guns.  Over the past 12 years, we have driven down violent crime across Jersey City to historic lows by investing in smart policing strategies, stronger community partnerships, and unprecedented public safety resources, and today’s arrests are yet another example of our dedication to keeping residents safe,” Mayor Steven M. Fulop, City of Jersey City said.

“Our priority has always been to protect the people of Jersey City, and today’s operation shows that commitment in action.  By arresting these violent offenders and removing illegal guns and drugs from our streets, we are protecting residents today and reinforcing the long-term safety gains we’ve made under this administration’s leadership,” stated Public Safety Director James Shea.

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

West, Gaines, Felder, Garrett, Washington, Thomas, Frimpong, Harvey, Torres, Pettiford, Rivers, Turner, Thorton, and Maldonado are all members and associates of the neighborhood street gang associated with the Salem Lafayette Housing Complex, which is known as “SaLaf.”

The gang’s drug trafficking activities were extensive, with federal, state, and local investigators observing and documenting hundreds of narcotics transactions that occurred within and around the Salem Lafayette Housing Complex during the months-long investigation.   

The investigation likewise revealed that Bell, Rodriguez, Crawford, and Reaves were suppliers of narcotics to the SaLaf drug trafficking organization.

Law enforcement used investigative techniques including, but not limited to, wiretaps, controlled purchases of narcotics by confidential informants, telephone record analysis, and physical and fixed surveillance, among other lawful means of investigation.  The investigation revealed that the SaLaf DTO distributes large quantities of fentanyl, cocaine base, PCP, various prescription pills, and other narcotics in this public housing community as well as the surrounding area.

The charged offense carries a mandatory minimum prison sentence of 5 years and a maximum potential prison sentence of 40 years, and a maximum fine of $5,000,000.

Acting U.S. Attorney and Special Attorney Habba credited special agents and task force officers of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), under the direction of Special Agent in Charge L.C. Cheeks Jr., Newark Field Division; special agents and task force officers with the Drug Enforcement Administration (DEA), New Jersey Division, under the direction of Special Agent in Charge Cheryl Ortiz; investigators of the Hudson County Prosecutor’s Office, under the direction of Acting Prosecutor Wayne Mello; and investigators of the Jersey City Police Department, under the direction of Director James Shea, for the investigation leading to the charges.

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

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

The case was investigated under the Organized Crime Drug Enforcement Task Forces (OCDETF). OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. For more information about Organized Crime Drug Enforcement Task Forces, please visit Justice.gov/OCDETF.

The government is represented by Assistant U.S. Attorney Lauren Kober of the Office’s Organized Crime and Gangs Unit and Trial Attorney Justin Bish of the Department of Justice Criminal Division’s Violent Crime and Racketeering Section.

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

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TRENTON, NJ. –  A New Jersey man was sentenced on August 26, 2025, to 151 months in prison for orchestrating a decades-long scheme to defraud more than 60 victim investors out of more than $6 million, Acting U.S. Attorney and Special Attorney Alina Habba announced.

Vincent Dispoto Jr., 68, formerly of Belmar, New Jersey, previously pleaded guilty before U.S. District Judge Zahid N. Quraishi to an information charging him with one count of wire fraud.  Judge Quraishi imposed the sentence in Trenton federal court.

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

Dispoto owned and operated Giddeon Financial Services, a purported investment services firm.  Beginning in or around 1988, Dispoto raised money through Giddeon Financial Services and other entities by falsely claiming to victims, many of whom were elderly, that he would invest their money in low-risk investment products with guaranteed rates of return, including municipal bonds and certificates of deposits. Dispoto also told some victims that he was using their investments to fund loans and mortgages for medical professionals, which would generate long-term returns through interest payments. To perpetuate his fraud, Dispoto mailed victims false and fraudulent financial statements that purported to show significant increases in the value of their investments.

In reality, Dispoto did not invest the victims’ money as promised. Instead, he used it to make Ponzi-like payments to other victims, which he falsely claimed to be “returns” on investments. He also misappropriated victim money to fund his gambling and other personal expenses. Dispoto’s scheme collectively resulted in more than approximately $6 million in losses to victims.

In addition to the prison term, Judge Quraishi sentenced Dispoto to three years of supervised release and ordered restitution of $6,083,419.84 to the victims of Dispoto’s offense. Judge Quraishi separately entered a forfeiture money judgment of $6,990,635.62.

Acting U.S. Attorney and Special Attorney Habba credited special agents of the FBI, under the direction of Special Agent in Charge Stefanie Roddy in Newark, with the investigation leading to the sentencing.

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

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Defense counsel:  Areeb Salim, Esq. and John Yauch, Esq., Assistant Federal Public Defenders, Newark