District of New Jersey

CAMDEN, N.J. – Ten people from South Jersey and Philadelphia have been charged with participating in a scheme to defraud individuals, companies, and financial institutions by misappropriating the victims’ bank account information and using that information to withdraw over $1.5 million in funds to which they were not entitled, U.S. Attorney Craig Carpenito announced today.

Kayla Massa, 22, of Gloucester City, New Jersey; Leire Massa, 19, of Laurel Springs, New Jersey; William Logan, 22, of Gloucester City; Jordan Herrin, 22, of Berlin, New Jersey; Erasmo Feliciano, 19, Laurel Springs; Kevin McDaniels, 18, of Sicklerville, New Jersey; Jabreel Martin, 20, of Philadelphia; Dezhon McCrae, 20, of Penns Grove, New Jersey; Andrew Johnson, 21, of Gloucester City; and Alex Haines 27, of Woodbury, New Jersey; are charged by complaint with conspiracy to commit wire fraud and bank fraud. They appeared before U.S. Magistrate Judge Karen M. Williams in Camden federal court today and on Feb.13, 2020.

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

Postal inspectors connected stolen postal money orders to a series of fraudulent bank account activities at various area banks. They discovered a network of individuals in the Sicklerville, Clementon, and Gloucester City areas who posted advertisements on Instagram and Snapchat, offering people the ability to make “quick cash” if they banked at certain institutions. Some members of the conspiracy then acquired individuals’ banking information using a ruse, while others printed counterfeit checks that they deposited into the accounts. Members of the conspiracy also used victims’ debit cards to withdraw cash and make large purchases, including purchases of money orders. The group financed purchases of luxury items, including jewelry, watches, other luxury goods and apparel, vehicles, with the stolen funds. In most cases, the victims of this scheme suffered financial losses and credit problems as a result. The estimated loss at this time exceeds $1.5 million.

U.S. Attorney Carpenito credited postal inspectors with the U.S. Postal Inspection Services, Philadelphia Division, under the direction of Acting Inspector in Charge John Walker; special agents of the U.S. Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Brian Michael in Newark; the U.S. Marshals Service, under the direction of U.S. Marshal Juan Mattos; the Glassboro Police Department, under the direction of Chief John Polillo; New Jersey State Police, under the direction of Col. Patrick J. Callahan; the Woodbury City Police Department, under the direction of Chief Thomas Ryan; the Gloucester Township Police Department - Special Investigations Unit, under the direction of Chief David J. Harkins; the Winslow Police Department, under the direction of Chief George M. Smith; and the Gloucester County Prosecutor’s Office - Fugitive Investigations Unit, under the direction of Prosecutor Charles Fiore, with the investigation leading to the charges.

The government is represented by Assistant U.S. Attorney Alisa Shver of the U.S. Attorney’s Office Criminal Division in Camden.

NEWARK, N.J. – Five Newark men who were members of a street gang known as the “Famous Boyz” have been sentenced to prison for their roles in a conspiracy to distribute heroin and cocaine, U.S. Attorney Craig Carpenito announced today.

Robert Dorrah, 21, a/k/a “Cash Out,” was sentenced today to five years in prison and five years of supervised release. Dorrah previously pleaded guilty before U.S. District Judge Madeline Cox Arleo to an information charging him with one count of conspiring to distribute and to possess with intent to distribute 100 grams or more of heroin.

Ibn Saadiq, 22, a/k/a “Zero,” was sentenced on Feb. 11, 2020, to five years in prison and five years of supervised release. He previously pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute 100 grams or more of heroin.

David Lamar, 28, a/k/a “Brazy Ru,” was sentenced on Jan. 27, 2020, to five years in prison and five years of supervised release. He previously pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute 28 grams or more of crack cocaine.

Angelo West, 22, a/k/a “Come Up,” was sentenced on Jan. 16, 2020, to 10 years in prison and five years of supervised release. He previously pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute 100 grams or more of heroin and 28 grams or more of crack cocaine, and one count of possession of a firearm in furtherance of a drug trafficking crime.

Quaheem Bethea, 21, a/k/a “Troub,” was sentenced on Jan. 6, 2020, to five years in prison and five years of supervised release. He previously pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute 100 grams or more of heroin.

Judge Arleo imposed all the sentences in Newark federal court.

In October 2018, Dorrah, Saadiq, Lamar, West and Bethea, along with 12 other members of a violent drug trafficking conspiracy operating in Newark, were charged by criminal complaint with conspiracy to distribute crack cocaine and/or heroin. Shaka McKinney and Jahid Vauters, a/k/a “K,” a/k/a “KO,” also were charged with firearms possession offenses. To date, seven other members of the conspiracy, in addition to Dorrah, Saadiq, Lamar, West and Bethea, have pleaded guilty to drug and/or firearms charges in Newark federal court and await sentencing.

On Feb. 25, 2019, a grand jury returned an indictment charging Patricio Hernandez, Jonathan Hernandez, and Jonathan Garcia, a/k/a “Bebo,” with one count each of conspiracy to distribute and to possess with intent to distribute 280 grams or more of crack cocaine for their alleged participation in supplying the “Famous Boyz” with cocaine. On Sept. 30, 2019, a grand jury returned a 21-count superseding indictment against the remaining defendants, Patricio Hernandez, Jonathan Hernandez, Garcia, Javon Holmes, a/k/a “J-Dot”, and John Mosley, a/k/a “Breezy,” a/k/a “Brazy,” with various drug charges, including conspiracy to distribute cocaine base and heroin, distribution of cocaine base and heroin, distribution of controlled substances and maintaining a drug-involved premises. The charges in the superseding indictment remain pending against the remaining defendants.

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

The defendants are members and associates of the Famous Boyz – a subset of the Brick City Brim set of the Bloods street gang – which dealt significant quantities of heroin and crack cocaine, primarily in and around the area of South 18th Street and 15th Avenue, in Newark. The gang often referred to this area as the “8 Block,” “18th,” or simply by reference to the number “8”.

Mosley was a primary source of narcotics for the Famous Boyz and often directed the gang’s drug operations. Mosley and other members of the Famous Boyz shared narcotics, customers, and firearms with one another in furtherance of their narcotics trafficking activities, and they used juveniles to distribute narcotics and stash firearms. Patricio Hernandez and Jonathan Hernandez were among the main suppliers of crack cocaine to Mosley, while Vauters supplied Mosley with heroin. Heroin sold by Famous Boyz members, including Dawes, Armstrong and Williams, contained a fentanyl analogue, which is extremely dangerous and highly addictive.

Members of the Famous Boyz also used social media to promote the gang’s criminal activities, including by advertising their narcotics trafficking activities and proceeds and by threatening both rival gang members and any individuals who consider cooperating with law enforcement. Those members who sold narcotics also enriched themselves by committing other crimes, including robberies. For example, law enforcement, acting on information obtained from a wiretap, arrested West while he was attempting to commit a robbery. After law enforcement seized a .40 caliber firearm from the scene, Mosley was overheard complaining to Holmes, “so all the rachets gone” and “damn we just lost all the straps,” referring to the Famous Boyz losing their firearms.

U.S. Attorney Carpenito credited special agents of ATF, under the direction of Special Agent in Charge Charlie J. Patterson in Newark, and members of the Newark Department of Public Safety, under the direction of Director Anthony F. Ambrose, with the investigation leading to sentencings.

He also thanked the DEA, under the direction of Special Agent in Charge Susan A. Gibson, the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Theodore N. Stephens II, the Essex County Sheriff’s Office, under the direction of Sheriff Armando B. Fontoura, the N.J. State Police, under the direction of Col. Patrick J. Callahan, the Belleville Police Department, under the direction of Chief Mark Minichini, and the Livingston Police Department, under the direction of Chief Gary Marshuetz.

This case is being conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF) and is part of the Violent Crime Initiative (VCI) in Newark. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply. The VCI was formed in August 2017 by the U.S. Attorney’s Office for the District of New Jersey, the Essex County Prosecutor’s Office, and the City of Newark’s Department of Public Safety to combat violent crime in and around Newark. As part of this partnership, federal, state, county, and city agencies collaborate and pool resources to prosecute violent offenders who endanger the safety of the community. The VCI is composed of the U.S. Attorney’s Office, the FBI, the ATF, the DEA New Jersey Division, the U.S. Marshals, the Newark Department of Public Safety, the Essex County Prosecutor’s Office, the Essex County Sheriff’s Office, N.J. State Board of Parole, Union County Jail, N.J. State Police Regional Operations and Intelligence Center/Real Time Crime Center, N.J. Department of Corrections, the East Orange Police Department, and the Irvington Police Department.

The government is represented by Deputy Chief of the Criminal Division Mary E. Toscano and Assistant U.S. Attorney Angelica M. Sinopole of the U.S. Attorney’s Office’s Organized Crime and Gangs Unit in Newark.

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

Defense counsel: Dorrah: John Whipple Esq., Morristown, New Jersey
Bethea: Kathleen M. Theurer Esq., Jersey City, New Jersey
West: Michael V. Calabro Esq., Newark
Lamar: Michael P. Koribanics Esq., Newark
Saadiq: James Patton Esq., Livingston, New Jersey

NEWARK, N.J. – A Bronx, New York, man today admitted participating in a conspiracy to distribute heroin and fentanyl from a drug mill in the Bronx to locations in New Jersey, U.S. Attorney Craig Carpenito announced.

Daury Contreras Ulerio, 35, a/k/a “Majimbou,” pleaded guilty before U.S. District Judge Esther Salas in Newark federal court to an indictment charging him with one count of conspiracy to distribute 400 grams or more of a mixture and substance containing fentanyl. Dilson Vazquez Genao, 23, Eddie Urena Rodriguez, 35, Francisco Mercedes Gil, 31, and Jose Antonio Vazquez Pena, a/k/a “Tono,” 47, also of the Bronx, New York, all have pleaded guilty before Judge Salas to the same charges previously.

Two other individuals – Jhan Carlos Capellan Maldonado, 31, and Reimon Genao Rosario, 23 – were indicted on the same charge as Ulerio in August 2019. Their cases are pending.

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

In early February 2019, law enforcement officers learned that Maldonado used an apartment in Bronx to store, mix, and package heroin and fentanyl in distribution quantities. Pena stayed at the apartment in order to safeguard the narcotics and narcotics supplies. Maldonado employed approximately five workers at a time – including Rodriguez, Ulerio, Rosario, Gil, and Genao – to assist in preparing the heroin and fentanyl for distribution, which Maldonado then distributed to customers in New Jersey.

On Feb. 25, 2019, law enforcement officers saw Maldonado drive to a retail store and emerge with several full shopping bags and then drive to the apartment. Genoa came out of the building and met with Maldonado, who got out of his vehicle and gave Genoa the plastic shopping bags. Through its investigation, law enforcement later learned that the plastic shopping bags contained materials to package heroin and fentanyl.

Genoa went back inside the building and was followed by law enforcement officers, who watched as Genoa entered Maldonado’s apartment with a key, still carrying the shopping bags. On Feb. 27, 2019, law enforcement searched Maldonado’s apartment and found seven individuals inside, including Rodriguez, Ulerio, Rosario, Gil, Maldonado, Pena, and Genao. All seven defendants attempted to escape out a window, but all but one – Rosario – were apprehended and arrested by law enforcement officers waiting outside. Rosario was arrested at a later date. Law enforcement recovered nearly a kilogram of fentanyl from the apartment, along with materials to grind and package fentanyl for distribution.

Each defendant faces a mandatory minimum penalty of 10 years in prison, a maximum potential penalty of life in prison, and a $10 million fine. Sentencing for Ulerio is scheduled for May 27, 2020.

U.S. Attorney Craig Carpenito credited the U.S. Department of Homeland Security, Homeland Security Investigations (HSI), New Jersey Division, under the direction of Special Agent in Charge Brian Michael, with the investigation leading to today’s plea.

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

The charge and allegations contained in the indictment against Maldonado and Rosario are merely accusations, and the defendants are presumed innocent unless and until proven guilty.

NEWARK, N.J. – The former owner of a Ramsey, New Jersey, car dealership is scheduled to make his initial court appearance and be arraigned today on charges that he defrauded his customers and lenders, U.S. Attorney Craig Carpenito announced.

Afzal Khan, a/k/a “Bobby Khan,” 37, was charged by indictment in 2015 with five counts of wire fraud. 

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

From at least December 2013 through September 2014, Khan, through his car dealership,

Emporio Motor Group (“Emporio”) of Ramsey, engaged in acts to defraud lenders to, and customers of, Emporio. As part of his criminal activities, Khan obtained loans from the auto finance division of a large bank for cars that he never delivered, but for which the purchaser was still responsible. Khan also obtained loans from the victim bank for cars that were delivered, but for which neither he nor Emporio had title. The purchasers of these cars were liable for the loans, but could not register the cars. Khan also offered to sell cars for individuals on consignment but thereafter did not return the cars or provide any money to the purchaser from the sale of the car.

As a result of Khan’s actions, the victim bank was exposed to a potential loss of more than $1.5 million. 

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

U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, with the investigation leading to the indictment. He also thanked the Department of Justice’s Office of International Affairs, the Bergen County Prosecutor’s Office and the Ramsey Police Department for their assistance in the case.

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

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

NEWARK, N.J. – Three New Jersey individuals have admitted their roles in a scheme to steal checks worth more than $75,000 from the U.S. Postal Service (USPS) in Chester, New Jersey, U.S. Attorney Craig Carpenito announced.

Nicole Georges, 30, pleaded guilty today before U.S. District Judge William J. Martini, in Newark federal court to an information charging her with theft of mail and conspiracy to commit bank fraud. Raheem Haynes-Moore, 25, and Daquan Pruitt, 31 previously pleaded guilty to separate informations charging each with conspiracy to commit bank fraud, as a result of the scheme to cash the stolen checks.

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

Georges stole checks from the USPS station in Chester, New Jersey where she was employed. Georges and her conspirators then fraudulently deposited them into various bank accounts, and withdrew the money, often that same day or a day later before the checks were reported stolen. The stolen checks had a total value of over $75,000.

The charge of theft of mail by postal employee carries a maximum penalty of up to five years in prison and up to a $250,000 fine. The charge of conspiracy to commit bank fraud carries a maximum penalty of 30 years in prison and a $1 million fine. Sentencing for Georges is scheduled for June 18, 2020. Sentencing for Pruitt and Haynes-Moore is scheduled for April 23, 2020.

U.S. Attorney Craig Carpenito credited postal inspectors of the U.S. Postal Inspection Service, Newark Division, under the direction of Inspector in Charge James Buthorn, the U.S. Postal Service Office of Inspector General, under the direction of Special Agent in Charge Matthew Modafferi, and officers of the Chester Police Department, under the direction of Chief Thomas Williver, with the investigation leading to the guilty pleas.

The government is represented by Assistant U.S. Attorney Sophie E. Reiter of the U.S. Attorney’s Office Criminal Division in Newark.

NEWARK, N.J. – An Essex County, New Jersey, man was sentenced today to 36 months in prison for his role in a scheme to use credit cards stolen by mail carriers from the mail, U.S. Attorney Craig Carpenito announced. 

Elhadj Fofana, 23, of Orange, New Jersey, previously pleaded guilty before U.S. District Judge Kathryn S. Hayden to an information charging him with bank fraud and aggravated identity theft. Judge Hayden imposed the sentence today in Newark federal court.

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

From July 2017 to February 2018, Fofana and others used credit cards that were stolen by mail carriers to make unauthorized purchases of retail goods, such as Apple MacBook Pro devices and other Apple products, throughout New Jersey and New York, causing financial losses to the banks that issued the credit cards. Olagoke Araromi and Moussa Dagno, who bribed the mail carriers to steal the credit cards from the mail that were used for the scheme were sentenced in October to prison terms for their roles in the scheme. 

In addition to the prison term, Judge Hayden sentenced Fofana to three years of supervised release and ordered him to pay restitution in the amount of $114,680.

U.S. Attorney Carpenito credited special agents with the U.S. Postal Service Office of Inspector General, under the direction of Special Agent in Charge Matthew Modafferi, Northeast Area Field Office, and inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge James V. Buthorn in Newark, with the investigation leading to today’s sentencing. 

The government is represented by Assistant U.S. Attorney Jihee G. Suh and Senior Trial Counsel Mark McCarren of the U.S. Attorney’s Office’s Special Prosecutions Division.

CAMDEN, N.J. – A California man today admitted shipping approximately 30 pounds of crystal methamphetamine and conspiring to send an additional 5 kilograms of fentanyl into New Jersey, U.S. Attorney Craig Carpenito announced.

Jesus Zavala-Torres, 34, of San Jacinto, California, pleaded guilty before U.S. District Judge Noel Hillman in Camden federal court to an information charging him with one count of conspiracy to possess with intent to distribute 500 grams or more of methamphetamine and a quantity of fentanyl. 

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

In September 2018, law enforcement officers received information that an individual identified as Isabel Otanez-Sanchez, was shipping large quantities of narcotics to New Jersey from California. On Jan. 28, 2019, Sanchez agreed to send 30 pounds of methamphetamine to a law enforcement confidential source (the “CS”) in Atlantic City, New Jersey. Torres and Sanchez hid 28 packages of methamphetamine inside a salvaged vehicle that was shipped from California to New Jersey. Agents recovered the 28 packages, totaling approximately 30 pounds, from the car’s gas tank. On Feb. 12, 2019, the CS met with Sanchez and Torres in Riverside, California. At this meeting, Sanchez and Torres also agreed to sell an additional five kilograms of fentanyl that would be shipped to the CS in New Jersey in the same manner as the methamphetamine. Following this meeting, Sanchez and Torres were arrested by law enforcement and the five kilograms of fentanyl they intended to ship to New Jersey were recovered. Sanchez and Torres were charged by criminal complaint in the District of New Jersey with conspiracy to distribute methamphetamine and fentanyl.   

The conspiracy charge carries a mandatory minimum penalty of 10 years in prison, a maximum potential penalty of life in prison, and a $10 million fine. Sentencing is scheduled for June 17, 2020.

U.S. Attorney Carpenito credited special agents of the Department of Homeland Security, Homeland Security Investigations (HSI), Cherry Hill, under the direction of Special Agent in Charge Brian Michael in Newark, with the investigation leading to the arrests. He also thanked HSI in Riverside, CA; the New Jersey State Police; the Hemet, California, Police Department; and the Atlantic City Task Force for their assistance.

The government is represented by Special Assistant U.S. Attorney Meriah Russell of the U.S. Attorney's Office Criminal Division in Camden.

NEWARK, N.J. – A Bergen County, New Jersey, man today admitted participating in a conspiracy to pay and accept kickbacks in exchange for medically unnecessary prescriptions, U.S. Attorney Craig Carpenito announced.

Zachary Ohebshalom, 34, of Fort Lee, New Jersey, pleaded guilty today before U.S. District Judge Susan D. Wigenton in Newark federal court to an information charging him with conspiring to violate the federal anti-kickback statute. The information alleges that he conspired with the following three individuals who have been previously charged by criminal complaint in the District of New Jersey: Mark Filippone M.D., 71, of Wallington, New Jersey; Joseph Vangelas, a/k/a “Joseph Miller,” 33, of Fort Lee, New Jersey; and Marlene Vangelas, 58, of River Vale, New Jersey. Criminal charges against Filippone, Joseph Vangelas, and Marlene Vangelas remain pending. Estela Blaustein, 55 of Mahwah, New Jersey, previously pleaded guilty for her role in a related conspiracy to commit health care fraud and is pending sentencing. 

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

Beginning in May 2016, Ohebshalom participated in a kickback conspiracy stemming from a scheme to obtain millions of dollars in health benefits from the federal workers’ compensation program by prescribing and dispensing expensive, but medically unnecessary, pain creams. Dr. Filippone treated hundreds of now-former U.S. Postal Service employees for injuries they purportedly suffered on the job. He allegedly facilitated their disability claims by submitting forms and medical reports to the Department of Labor, Office of Workers’ Compensation Program, for patients who were not, in fact, disabled.

Dr. Filippone also prescribed expensive topical pain creams, which were not needed or wanted by many of his patients. The information alleges that Dr. Filippone steered these prescriptions to a pharmacy in Fair Lawn, New Jersey, where Blaustein was the pharmacist-in-charge. The Fair Lawn Pharmacy was owned and operated by Joseph Vangelas and Marlene Vangelas, who, along with Ohebshalom, directed Blaustein and others to mine reimbursement rates within the federal workers’ compensation program for the ingredients of the pain creams in order to determine the most lucrative formulations. Joseph Vangelas, Marlene Vangelas, and Ohebshalom directed Blaustein and others to print prescription labels for Dr. Filippone to use with his patients. Dr. Filippone used the pre-printed labels and sent the prescriptions back to the Fair Lawn Pharmacy. In order to induce Dr. Filippone to prescribe the medically unnecessary pain creams in the exact formulations they wished to obtain, Joseph Vangelas and Marlene Vangelas purchased Dr. Filippone’s medical office and then permitted Dr. Filippone to continue to use the premises, for which he routinely failed to pay rent. Joseph Vangelas, Marlene Vangelas, and Ohebshalom conspired to leverage the property to force Dr. Filippone to continue to send prescriptions to their pharmacy. Dr. Filippone continued to feed prescriptions to the pharmacy, so long as Miller and Vangelas permitted him to remain rent-free in the property.

As part of his plea agreement, Ohebshalom agreed that the improper benefit conferred as part of the conspiracy to violate the federal anti-kickback statute was between $1.5 million and $3.5 million.

The count of conspiracy to violate the federal anti-kickback statute is punishable by a maximum of 5 years in prison and a fine of $250,000, or twice the gross gain or loss derived from the offense, whichever is greater. Sentencing is scheduled for May 21, 2020.

U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory Ehrie in Newark; the U.S. Postal Service, Office of Inspector General, under the direction of Special Agent in Charge of the Northeast Area Field Office Matthew M. Modafferi; the Department of Labor, Office of Inspector General, New York Region, under the direction of Special Agent in Charge Michael C. Mikulka; and special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge John R. Tafur, with the investigation leading to the charges.

The government is represented by Assistant U.S. Attorney Joshua L. Haber of the Health Care Fraud Unit of the U.S. Attorney’s Office in Newark.

The charges against and allegations in the information pertaining to Filippone, Joseph Vangelas, and Marlene Vangelas are merely accusations, and those three defendants are presumed innocent unless and until proven guilty.

NEWARK, N.J. – An Essex County, New Jersey, resident was sentenced today to 24 months in prison for bribing mail carriers from the U.S. Postal Service  (USPS) to deliver to him parcels containing marijuana, U.S. Attorney Craig Carpenito announced. 

Glenn Blackstone, 50, of Newark, previously pleaded guilty before U.S. District Judge Esther Salas to an information charging him with one count of giving bribes and one count of conspiracy to distribute marijuana. Judge Salas imposed the sentence today in Newark federal court. 

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

From October 2014 to September 2017, Blackstone purchased marijuana from a conspirator, who produced the marijuana in California and shipped it in parcels to New Jersey.  On multiple occasions, Blackstone bribed two USPS mail carriers to remove the parcels from the normal delivery stream and deliver them instead to him at various locations in Newark. These parcels had fictitious names and addresses on them and were not addressed directly to Blackstone. After receiving the packages from the mail carriers and paying the bribes, Blackstone then sold the marijuana to others in Newark.

In addition to the prison term, Judge Salas sentenced Blackstone to five years of supervised release.

One of the mail carriers, Leonard Gresham, 52, of Rahway, New Jersey, also was sentenced by Judge Salas today to three years of probation for taking bribes from Blackstone. Another mail carrier, Fred Rivers, 47, of Newark, was sentenced to three years of probation with a condition of one year of home confinement by Judge Salas on Jan. 23, 2020 for his role in the bribery scheme.

U.S. Attorney Craig Carpenito credited special agents with the USPS-Office of Inspector General, under the direction of Special Agent in Charge Matthew Modafferi, Northeast Area Field Office, and inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge James Buthorn, with the investigation leading to today’s sentencings.

The government is represented by Lee M. Cortes Jr., Chief of the Health Care Fraud Unit and Assistant U.S. Attorney Sean Farrell of the U.S. Attorney’s Office’s Special Prosecutions Division.

NEWARK, N.J. – The U.S. Department of Justice filed a complaint today against the State of New Jersey, Governor Philip Murphy, and state Attorney General Gurbir Grewal challenging two aspects of New Jersey Attorney General Law Enforcement Directive 2018-6.

The complaint seeks to enjoin two aspects of the Directive and for the Court to declare these aspects of the Directive invalid.  Among other things, the Directive prohibits state officials from sharing information with U.S. Immigration and Customs Enforcement (ICE) related to the immigration status and release dates of individuals in their custody. The Directive also requires New Jersey law enforcement to “promptly notify a detained individual, in writing and in a language the individual can understand,” if ICE files an immigration detainer request for the individual.

U.S. Attorney Craig Carpenito stated: “Today’s lawsuit, filed by the Department of Justice, seeks to restore the balance of power between the Federal and State governments. The complaint challenges two provisions of the Directive, which limit the situations in which local, county and state officials can provide notice to federal immigration authorities of a detained individual’s upcoming release and mandates that local, county and state officials inform detainees of certain events, including the detainee’s release date. Today’s filed lawsuit presents important legal issues concerning whether the Directive’s prohibitions and restrictions on information sharing and basic cooperation with federal officials violate the Supremacy Clause of the U.S. Constitution.”

CAMDEN, N.J. – A member of a drug-trafficking organization today admitted her role in a conspiracy to distribute significant amounts of illegal drugs in Camden, U.S. Attorney Craig Carpenito announced.

Meylin Troncoso, 32, of Camden, pleaded guilty before U.S. District Judge Renée Marie Bumb in Camden federal court to an information charging her with conspiracy to distribute and possess with intent to distribute heroin within 1,000 feet of a school.  

Thirteen other members of the drug-trafficking conspiracy – Ronnie Lopez, Nelson Salcedo, Paul Salcedo, Waldemar Garcia, William Carrillo, Elisa Rivera, Ramon Velez, Naeem Sadler, Jasmin Velez, Jameel Byng, Kaliel Johnson, David Velez and Carlos Perez – previously have pleaded guilty to their roles in a drug trafficking conspiracy that was based on the 500 block of Pine Street in Camden. The charges against five other defendants remain pending.

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

Members of the drug-trafficking organization sold heroin, crack cocaine, powder cocaine, and fentanyl – in and around Camden. An investigation led by the FBI used surveillance tactics, confidential informants, consensual recordings, over 40 controlled drug purchases, record checks, a GPS vehicle tracker, and several court-authorized wiretaps to uncover the operations of the Camden drug-trafficking organization.

The count to which Troncoso pleaded guilty carries a mandatory penalty of one year in prison, a maximum potential penalty of 40 years in prison, and a $2 million fine. Her sentencing is scheduled for May 18, 2020.

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

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

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

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

NEWARK, N.J. – The U.S. Attorney’s Office for the District of New Jersey has reached a settlement with a charter bus company, Academy Express, LLC (“Academy”), headquartered in Hoboken, New Jersey, to ensure equal access for passengers with disabilities under the Americans with Disabilities Act (“ADA”), U.S. Attorney Craig Carpenito announced. This year marks the 30th Anniversary of the ADA, which U.S. Attorneys’ Offices play a critical role in enforcing.

The agreement resolves allegations of disability discrimination against a 74-year-old veteran who became paraplegic after his helicopter was gunned down in Vietnam. The veteran, who was a Staff Sergeant in the Army’s 189th Assault Helicopter Company and served in Vietnam in 1968 and 1969, sought to join dozens of his fellow combat unit veterans on an Academy charter bus for a multi-day “Honor Flight” tour of Arlington National Cemetery and other Washington, D.C. area sites. Although the group’s organizer had requested, over a month in advance, that at least one of Academy’s charter buses for the tour have a working wheelchair lift to accommodate the veteran, Academy violated the ADA by failing to provide a bus with a working wheelchair lift or a replacement bus with a working lift. Instead, the veteran who, in addition to having a severe lack of mobility outside of his wheelchair, suffers from combat-related Post-Traumatic Stress Disorder, was separated from his comrades and compelled to endure lengthy, embarrassing, and unsuccessful attempts to board him on an inaccessible bus.

The ADA requires over-the-road demand-responsive bus operators to ensure that passengers with disabilities who request accessible service receive accessible service. A bus operator may require 48 hours advanced notice, but if a request is made within 48 hours of a trip, the operator must provide a lift if it can do so by making a reasonable effort. A bus operator must, among other things, also establish a system of regular and frequent maintenance checks of wheelchair lifts sufficient to determine if they are operative, and to train their employees to proficiency regarding the proper operation and maintenance of accessibility features and equipment.

“The men and women of our Armed Forces have made extraordinary and selfless sacrifices to protect the rights and freedoms of all Americans,” said U.S. Attorney Craig Carpenito. “This Office remains resolute in its commitment to honor those sacrifices and ensure that the rights of servicemembers and veterans be respected. Through our enforcement of the ADA, we will continue to protect veterans and other individuals with disabilities from unequal and unfair treatment.”

Under the settlement agreement, Academy has agreed to implement policies and procedures to ensure that persons with disabilities receive accessible transportation on the day and at the time and place requested, to publish on its website a statement of that policy, and to provide mandatory employee training on the ADA in accordance with regulatory requirements. Academy will also pay $10,000 as a civil penalty to the United States, and $10,000 in damages to the aggrieved veteran.

Individuals who believe they may have been victims of discrimination may file a complaint with the U.S Attorney’s Office at http://www.justice.gov/usao-nj/civil-rights-enforcement/complaint. For more information on the ADA, visit www.ada.gov, or call the Department of Justice’s toll-free ADA information line at 800-514-0301 or 800-514-0383 (TDD).

The government is represented by Special Assistant U.S. Attorney Victor Williamson of the U.S. Attorney’s Office Civil Rights Unit in Newark.

A Manahawkin, New Jersey, business owner was sentenced to 12 months and one day in prison today for willfully failing to pay over employment taxes, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Craig Carpenito for the District of New Jersey. Dale previously pleaded guilty to the charge in January 2019.

According to the information and other pleadings filed in the case, Richard Dale operated Advanced Pro Home Care Inc. (Home Care), a health care agency located in Brick, New Jersey.  As operator and payroll manager of Home Care, Dale was responsible for depositing and withdrawing money from Home Care’s business bank accounts, administering its accounts payable and receivable, and preparing payroll for its employees. Dale also was required to report and pay over employment taxes to the Internal Revenue Service (IRS). From 2012 through 2014, however, Dale did not pay to the IRS substantial employment taxes owed by Home Care, including employee federal income tax withholdings, Social Security taxes, and Medicare taxes, nor did he file the requisite employment tax forms. During this period Home Care amassed more than $500,000 in employment tax liabilities, but Dale only made a single payment of approximately $30,000.

In addition to the term of imprisonment, U.S. District Judge Peter G. Sheridan ordered defendant to serve three years of supervised release and to pay approximately $504,145 in restitution to the United States. 

Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Carpenito thanked special agents of IRS-Criminal Investigation, who investigated the case, and Assistant U.S. Attorney Brian Lee Urbano and Trial Attorney Shawn Noud of the Tax Division, who prosecuted the case.

NEWARK, N.J. – A Hudson County, New Jersey, woman was sentenced today to 135 months in prison for her role in conspiring to distribute fentanyl, which resulted in the overdose of an inmate at a New Jersey State prison, U.S. Attorney Craig Carpenito announced.

Jasmir Humphrey, a/k/a “Jasmir Jackson,” 31, previously pleaded guilty to an information charging her with one count of conspiracy to distribute and possess with intent to distribute fentanyl. U.S. District Judge Brian R. Martinotti imposed the sentence today in Newark federal court.

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

Noel Salgado, a/k/a “Kuko,” who is the leader of the “Loyal Hoody Gang” subset of the Neighborhood Rolling 20 Bloods, a nationwide street gang, was previously incarcerated as an inmate at Bayside State Prison. While incarcerated, Salgado directed Humphrey, gang members, and associates to provide narcotics proceeds to him and his associates and to smuggle narcotics and other contraband into the prison in order to distribute to other inmates.

In particular, on October 17, 2015, Salgado called Rodgerick Garrett, a/k/a, “Fif,” a/k/a, “Boo,” from prison to arrange for the purchase and smuggling into the prison of heroin and fentanyl. Humphrey picked up the narcotics from Garrett and smuggled them to Salgado on October 18, 2015. The following day, an inmate of Bayside State Prison, to whom Salgado had distributed the narcotics, was found unresponsive in his cell suffering from a drug overdose. Despite rescue breathing efforts, the inmate remained unconscious for approximately 20 minutes. The inmate only regained consciousness after medical personnel administered an opiate antidote to revive the inmate. The inmate was hospitalized for two days following his overdose. Law enforcement’s investigation revealed that Humphrey had smuggled in drugs for Salgado on prior occasions. Charges against Salgado and Garrett are still pending, and they are both presumed innocent unless and until proven guilty.

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

U.S. Attorney Carpenito credited special agents with the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, and investigators with the N.J. Department of Corrections, Special Investigations Division, under the direction of Commissioner Marcus O. Hicks, with the investigation leading to the charges resulting in today’s sentencing. He also thanked the Jersey City Police Department and the Hudson County Sheriff’s Office for their assistance.

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

Defense counsel: Joseph M. Corazza, Esq.

The owners of two telemedicine companies were charged in an indictment unsealed yesterday for allegedly orchestrating a nationwide scheme to receive kickbacks and bribes in exchange for the ordering of medically unnecessary orthotic braces (braces) for beneficiaries of Medicare.

Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, First Assistant U.S. Attorney Rachael Honig of the District of New Jersey, Deputy Inspector General for Investigations Gary Cantrell of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) and Assistant Director Terry Wade of the FBI’s Criminal Investigative Division made the announcement.

Reinaldo Wilson, 51, and Jean Wilson, 49, husband and wife of Richmond Hill, Georgia, the owners of purported telemedicine companies Advantage Choice Care LLC (ACC) and Tele Medcare LLC (Tele Medcare), were each charged with one count of conspiracy to defraud the United States and to pay and receive health care kickbacks, one count of conspiracy to commit health care fraud and wire fraud, three counts of receiving health care kickbacks, and one count of conspiracy to commit money laundering.  Reinaldo Wilson and Jean Wilson were arrested this morning and appeared this afternoon before U.S. Magistrate Judge L. Patrick Auld of the Middle District of North Carolina.  Reinaldo Wilson is being held pending a bail hearing set for Feb. 11. Jean Wilson was released and will appear for a bail hearing on Feb. 11. 

The indictment alleges that Reinaldo Wilson and Jean Wilson owned and operated purported telemedicine companies ACC and Tele Medcare, which had locations in Bayonne, New Jersey, Boca Raton, Florida, and Richmond Hill, Georgia.  The indictment further alleges that Reinaldo Wilson and Jean Wilson agreed to solicit and receive illegal kickbacks and bribes from patient recruiters, pharmacies, brace suppliers and others in exchange for the arranging for doctors to order medically unnecessary braces for beneficiaries of Medicare from approximately March 2017 through April 2019.  In order to obtain the orders that were transmitted in exchange for kickbacks and bribes, Reinaldo Wilson and Jean Wilson, through ACC and Tele Medcare, recruited and hired health care providers to order braces for Medicare beneficiaries, the indictment alleges.  Reinaldo Wilson and Jean Wilson allegedly paid illegal kickbacks and bribes to health care providers to order braces for Medicare beneficiaries that were medically unnecessary, ineligible for Medicare reimbursement and/or not provided as represented.

The indictment further alleges that Reinaldo Wilson, Jean Wilson and others transferred the brace orders to co-conspirator brace suppliers to support in excess of $56 million in false and fraudulent claims to Medicare that were submitted by brace suppliers and that Medicare paid these brace suppliers in excess of $28 million for these claims.

With regard to the money laundering charge, that indictment alleges that between approximately March 2017 and April 2019, Reinaldo Wilson and Jean Wilson agreed to engage in monetary transactions of criminally derived property in amounts greater than $10,000.

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

This case was investigated by HHS-OIG and the FBI.  Trial Attorney Darren C. Halverson of the Criminal Division’s Fraud Section is prosecuting the case.

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

Any doctors or medical professionals who have been involved with alleged fraudulent telemedicine and DME marketing schemes – including Advantage Choice Care LLC and Tele Medcare LLC – should call to report this conduct to the FBI hotline at 1-800-CALL-FBI.

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

TRENTON, N.J. – A Trenton man was sentenced today to 86 months in prison for possessing a firearm and ammunition as a convicted felon and for distributing quantities of heroin, U.S. Attorney Craig Carpenito announced. 

Kendall Rossi, 41, previously pleaded guilty before Chief U.S. District Judge Freda L. Wolfson to Counts One and Four of an indictment charging him with unlawful possession of a firearm and ammunition as a convicted felon and distribution and possession with intent to distribute controlled substances. Judge Wolfson imposed the sentence today in Trenton federal court.

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

On three occasions between August 2017 and September 2017, Rossi, who previously had been convicted of numerous felonies, and whom law enforcement officials had identified as an unlawful firearms supplier in and around Trenton, sold quantities of heroin and ANPP (a fentanyl analogue) to a confidential law enforcement source. Rossi boasted about his ability to obtain numerous firearms that he could sell. In October 2017, in a controlled transaction supervised by federal law enforcement, Rossi sold the confidential source a .380 caliber semi-automatic firearm and 47 rounds of .380 caliber ammunition. Rossi sold the firearm to the source under the belief that the source would use the firearm in connection with a robbery.

In addition to the prison term, Judge Wolfson sentenced Rossi to three years of supervised release.

U.S. Attorney Carpenito credited special agents of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Newark Division, Trenton Field Office, under the direction of Special Agent in Charge Charlie J. Patterson, with the investigation leading to today’s sentence.

The government is represented by Assistant U.S. Attorney J. Brendan Day of the U.S. Attorney’s Office’s Criminal Division in Trenton.

20-052                                                         

Defense Counsel: Alyssa Cimino Esq., Fairfield, New Jersey

NEWARK, N.J. – A Union County, New Jersey man who was previously convicted of several felonies admitted that he possessed and intended to distribute drugs and that he possessed a handgun to aid his drug distribution, U.S. Attorney Craig Carpenito announced today.

Arthur Forman, 37, pleaded guilty on Feb. 4, 2020 to a Superseding Information charging him with possession with the intent to distribute cocaine and oxycodone, possession of a firearm in the course of committing that drug crime, and being a previously convicted felon in possession of a firearm. Forman entered his plea before United States District Judge Katharine S. Hayden in Newark federal court.

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

During an encounter with the Plainfield, NJ police Department on October 13, 2017, Forman resisted arrest by violently choking a Plainfield detective. While trying to evade capture, Forman transferred a bag containing the cocaine and firearm to a family member, who attempted to dispose of the bag and its contents by throwing it out a window. During a subsequent search of Forman’s bedroom, Plainfield police officers found numerous oxycodone pills and paraphernalia used to grind pills and package drugs for sale. Forman today acknowledged that he possessed the drugs and gun. Forman also acknowledged that he was previously convicted in 2016 in Union County, New Jersey of resisting arrest and eluding, a felony under New Jersey state law.

The combined charges are punishable by a maximum sentence of 30 years to life in prison.

U.S. Attorney Carpenito credited the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the leadership of Special Agent in Charge Charlie J. Patterson; the Plainfield Police Division, under the leadership of Police Director Lisa Burgess; and the Union County Prosecutor’s Office, under the direction of Acting Prosecutor Lyndsay V. Ruotolo, with the investigation leading to the guilty plea.

The government is represented by Assistant U.S. Attorneys Joshua L. Haber and Desiree Grace Latzer of the U.S. Attorney’s Office Criminal Division in Newark.

Defense counsel: James Lisa, Esq., Jersey City, NJ

CAMDEN, N.J. – Two members of an Atlantic City drug-trafficking organization, including the leader of the organization, pleaded guilty today to distributing large amounts of heroin throughout Atlantic City, U.S. Attorney Craig Carpenito said.

Khalif Toombs, 30, of Egg Harbor Township, NJ, pleaded guilty before U.S. District Judge Robert B. Kugler in Camden federal court to an information charging him with one count of conspiracy to distribute and possess with intent to distribute more than one kilogram of heroin.

Nasir Brown, 27, of Atlantic City, NJ, also pleaded guilty to an information charging him with one count of conspiracy to distribute and possess with intent to distribute more than 100 grams of heroin.

Eight other members of the drug trafficking conspiracy – Wilbert Toombs, Quadir Stanley, Dean Johnson, Khalif Davis, Joseph Aversa, Thomas Randall, Mayda Hernandez, and Sarah Taliaferro – previously have pleaded guilty. The charges against twelve other defendants remain pending.

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

Toombs, Brown, and other members of the drug conspiracy trafficked heroin from Paterson, New Jersey and into Atlantic City, New Jersey throughout the course of the investigation. Toombs admitted in court to conspiring with others to traffic between three and ten kilograms of heroin during this time and to being a manager and supervisor of the drug trafficking conspiracy which operated throughout Atlantic County. An investigation led by the FBI used physical and video surveillance, confidential informants, consensual recordings, and two court authorized wiretaps to uncover the operations of Toombs and his many coconspirators. The investigation tracked multiple stamps of heroin being distributed by Toombs and others, including, “AK-47,” “Apple,” “Fortnite,” “Rolex,” “Frank Lucas,” “Bentley,” “Pandora,” and “9 ½.” Between January 1, 2017 and June 21, 2019, these stamps have accounted for 48 deaths and 84 non-fatal overdoses in the State of New Jersey.

The count to which Toombs pleaded guilty carries a mandatory penalty of 10 years in prison, a maximum potential penalty of a life in prison, and up to a $10 million fine. His sentencing is scheduled for May 12, 2020.

The count to which Brown pleaded guilty carries a mandatory penalty of 5 years in prison, a maximum potential penalty of 40 years in prison, and up to a $5 million fine. His sentencing is scheduled for May 12, 2020.

U.S. Attorney Carpenito credited special agents of the FBI’s Safe Streets South Jersey Violent Incident and Gang Task Force, Atlantic City Resident Agency, and FBI-Newark, under the direction of Special Agent in Charge Gregory W. Ehrie; officers of the Atlantic City Police Department, under the direction of Chief Henry White; the Atlantic County Prosecutor’s Office, under the direction of Prosecutor Damon Tyner; the Atlantic County Sheriff’s Department, under the direction of Sheriff Eric Scheffler; and the Pleasantville Police Department, under the direction of Chief Sean Riggin, with the investigation leading to today’s guilty pleas. He also thanked the U.S. Department of Homeland Security, Homeland Security Investigations; the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives; the Drug Enforcement Administration; and the N.J. State Police for their assistance.

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

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

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

Defense counsel: Toombs: Jerome Ballarotto Esq., Trenton, New Jersey
Brown: Mark Catanzaro Esq., Mount Holly, New Jersey

NEWARK, N.J. – A Hoboken-based accountant was sentenced to a year and a day in prison for evading more than $914,000 in taxes on income he earned from his accounting practice and various rental properties he owned, U.S. Attorney Craig Carpenito announced today.

Louis Picardo, 64, of Hoboken, New Jersey, previously pleaded guilty to an information charging him with four counts of income tax evasion. U.S. District Judge Stanley R. Chesler imposed the sentence on Feb. 4, 2020 in Newark federal court.

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

Picardo served as the Tax Collector in Hoboken between 1973 and 2008 and was a partner in Cannarozzi & Picardo LLC, a Hoboken-based accounting firm. Picardo also was a member of multiple entities (the “Picardo Entities”) that managed both commercial and residential properties in Hudson County. Picardo failed to report approximately $3,725,853 in taxable income that he collected from Cannarozzi & Picardo and the Picardo Entities on federal income tax returns he filed with the IRS for the tax years 2012 to 2015, resulting in a tax loss to the United States of approximately $914,908.

In addition to the prison term, Judge Chesler sentenced Picardo to two years of supervised release and ordered him to pay restitution to the IRS in the amount of $914,908.

U.S. Attorney Craig Carpenito credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge John R. Tafur, with the investigation leading to the sentence.

The government is represented by Assistant United States Attorney Sean Farrell of the U.S. Attorney’s Office’s Special Prosecutions Division and Rahul Agarwal, Deputy Chief of the Criminal Division.

Defense counsel: Peter Willis, Esq., Jersey City

TRENTON, N.J. – An Ocean County, New Jersey, man was sentenced today to 84 months in prison for distributing images and videos of child sexual abuse, U.S. Attorney Craig Carpenito announced.

Michael A. Ruggiero, 38, of Lacey Township, New Jersey, a former corrections officer, previously pleaded guilty before U.S. District Judge Peter G. Sheridan to an information charging him with one count of distribution of child pornography. Judge Sheridan imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in court:

From April 16, 2016, to April 19, 2016, Ruggiero used a mobile chat application to distribute and share over the internet images and videos of child sexual abuse. Some of the images and videos were of prepubescent children or children who had not attained the age of 12. Ruggiero also received over the same mobile chat application other images and videos of child sexual abuse, and he possessed additional depictions of child sexual abuse on his cellular telephone at the time of his arrest in June 2017.

In addition to the prison sentence, Judge Sheridan sentenced Ruggiero to five years of supervised release.

U.S. Attorney Carpenito credited special agents of the Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Brian A. Michael; inspectors of the U.S. Postal Inspection Service, under the direction of Postal Inspector in Charge Daniel B. Brubaker, Philadelphia Division; and members of the Ocean County Prosecutor’s Office under the direction of Prosecutor Bradley Billhimer with the investigation leading to today’s sentencing.

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

Defense counsel: Telesforo Del Valle, Jr., Esq., New York, NY

CAMDEN, N.J. – The former President and owner of a Glassboro, New Jersey, drum reconditioning company was sentenced today to 30 days’ imprisonment for illegally storing hazardous waste, U.S Attorney Craig Carpenito, and Deputy Assistant Attorney General Jean E. Williams of the Environment and Natural Resources Division of the U.S. Department of Justice, announced.

Thomas Toy, 75, of Elmer, New Jersey, previously pleaded guilty before Judge Renee M. Bumb to one count of storing hazardous waste at Superior Barrel and Drum Company, Inc.’s Glassboro, New Jersey, facility, in violation of the Resource Conservation and Recovery Act (RCRA). Judge Bumb imposed the sentence today in Camden federal court.

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

RCRA was enacted in 1976 to address a growing nationwide problem with industrial and municipal waste. RCRA was designed to protect human health and the environment and provided controls on the management and disposal of hazardous waste. RCRA prohibits the treatment, storage or disposal of any hazardous waste without a permit.

Superior received drums from various industrial customers, cleaned and processed those drums, and then resold them. As the President and owner of Superior, Toy’s responsibilities included making decisions about the storage and disposal of waste, including hazardous waste, at Superior’s facility. Superior did not have a permit to store hazardous waste at Superior’s facility.

Between on or about September 27, 2013, and on or about September 25, 2014, the United States Environmental Protection Agency (EPA) conducted a removal action of waste stored at Superior’s facility. In total, approximately 1,800 containers of waste were removed from Superior’s facility. Much of the waste was found to be hazardous. The direct cost to EPA of the removal action was over $4.2 million.

In addition to the prison term, Judge Bumb sentenced Toy to three years of supervised release, with a special condition of 30 days’ home confinement. She also ordered him to pay $4.2 million in restitution.

U.S. Attorney Carpenito credited special agents of the U.S. Environmental Protection Agency, under the direction of Special Agent in Charge Tyler C. Amon, with the investigation leading to today’s sentencing.

The Government is represented by Senior Environmental Counsel Kathleen P. O'Leary and Special Assistant United States Attorney Jason Garelick of the U.S. Attorney's Office Government Fraud Unit in Newark, and Trial Attorney Adam Cullman of the Environmental Crimes Section of the U.S. Department of Justice.

NEWARK, N.J. – Two alleged members of a Jersey City gang have been charged with the June 30, 2018, shooting of five people, U.S. Attorney Craig Carpenito announced today.

Jalil Holmes, a/k/a “Broadday,” 20, of East Orange, New Jersey, and Jidon Rogers, 37, of Jersey City, New Jersey, made their initial appearances today before U.S. Magistrate Judge Cathy L. Waldor in Newark federal court. They each are charged by complaint with five counts of assault with a dangerous weapon in aid of racketeering activity and five counts of discharging a firearm during a crime of violence.

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

Holmes and Rogers are allegedly both associated with a street gang known to operate in the area of the Marion Gardens Housing Complex in Jersey City. While paying homage to a fellow gang member who was murdered on June 30, 2013, Holmes, Rogers, and two other gang members traveled from the Marion Gardens Housing Complex to the area where their fellow gang member had been murdered five years prior, with the intention of shooting rival gang members. Upon arriving in that area, Holmes and the two other gang members exited the car that Rogers drove, brandished handguns, and fired multiple shots into a crowd of people. “Victim One” sustained one gunshot wound to his left thigh; “Victim Two” sustained one gunshot wound to his right calf; “Victim Three” sustained one gunshot wound to his right leg; “Victim Four” sustained two gunshot wounds to her upper right shoulder; and “Victim Five” sustained a gunshot wound to his left wrist.

Each count of assault with a dangerous weapon in aid of racketeering activity is punishable by up to 20 years in prison. Each count of discharging a firearm during a crime of violence carries a mandatory minimum term of 10 years in prison and a maximum sentence of life in prison, which must run consecutively to any terms imposed on the other counts. Holmes also has separate pending charges for a January 9, 2019 shooting of rival gang members.

U.S. Attorney Carpenito credited special agents with the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark; the Hudson County Prosecutor’s Office, under the direction of Prosecutor Esther Suarez; and the Jersey City Police Department, under the direction of Public Safety Director James Shea, with the investigation leading to the charges.

The government is represented by Assistant U.S. Attorney Desiree Grace Latzer of the Organized Crime and Gangs Unit in Newark.

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

Defense counsel: Holmes: Mark Berman, Esq., Hackensack, New Jersey
Rogers: Victor Afanador, Esq., Newark, New Jersey

NEWARK, N.J. – Five men from Jersey City, New Jersey have been charged with conspiracy to distribute and possess with intent to distribute narcotics, U.S. Attorney Craig Carpenito announced today.

Jerome Powell, 40, Raheem Rogers, 28, Karee Cunningham, 24, Rafiq Holmes, 40, and Matthew Collier, 36, are charged by criminal complaint with one count of conspiracy to distribute and possess with intent to distribute quantities of both heroin and cocaine. Rogers and Powell were arrested this morning. The other defendants remain at large.

The two defendants appeared on February 4, 2020, before U.S. Magistrate Judge Cathy L. Waldor in Newark federal court. Raheem Rogers and Jerome Powell were both detained.

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

From in or about August 2019 through on or about February 2, 2020, law enforcement observed Jerome Powell, Raheem Rogers, Karee Cunningham, Rafiq Holmes, and Matthew Collier working together to possess and distribute controlled substances on and around Bartholdi Avenue in Jersey City.

The conspiracy to distribute and possess with intent to distribute heroin and cocaine charge has a maximum sentence of 20 years in prison and a $1 million fine.

U.S. Attorney Carpenito credited special agents and task force officers of the Drug Enforcement Administration, under the direction of Special Agent in Charge Susan A. Gibson, New Jersey Division; and members of the Jersey City Police Department, under the direction of Chief of Police Michael Kelly, with the investigation leading to the charges.

This investigation was part of the Jersey City Violent Crime Initiative (VCI), where the U.S. Attorney’s Office has partnered with state, federal, county, and local law enforcement to investigate crime in Jersey City.

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

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

NEWARK, N.J. – An Illinois man today admitted conspiring to distribute one kilogram or more of heroin and 500 grams or more of cocaine, U.S. Attorney Craig Carpenito announced.

Jesus Henoc Castaneda Soberanis, 25, of Chicago, Illinois, pleaded guilty before U.S. District Judge Susan D. Wigenton in Newark federal court to an information charging him with one count of conspiracy to distribute and possess with the intent to distribute one kilogram or more of heroin and 500 grams or more of cocaine.

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

On June 6, 2019, Soberanis conspired with others to distribute narcotics, agreeing to pay a conspirator approximately $1,000 to drive Soberanis, together with approximately one kilogram of cocaine and approximately two kilograms of heroin, from Illinois to the East Coast. The investigation revealed that Soberanis would have distributed at least one of these kilograms of narcotics in New Jersey, were the narcotics not interdicted by law enforcement.

The count to which Soberanis pleaded guilty carries a mandatory minimum sentence of 10 years in prison, a maximum sentence of life imprisonment and a fine of up to $10 million. Sentencing is scheduled for May 20, 2020.

U.S. Attorney Craig Carpenito credited special agents of the Drug Enforcement Administration, under the direction of Special Agent in Charge Ray Donovan in New York, with the investigation leading to today’s guilty plea.

The arrest was the result of an investigation by the New York Strike Force, a crime-fighting unit comprising federal, state and local law enforcement agencies supported by the Organized Crime Drug Enforcement Task Force and the New York/New Jersey High Intensity Drug Trafficking Area.

The Strike Force is housed at the DEA’s New York Division and includes agents and officers of the DEA; the New York City Police Department; the New York State Police; Immigration and Customs Enforcement – Homeland Security Investigations; the U. S. Internal Revenue Service Criminal Investigation Division; the Bureau of Alcohol, Tobacco, Firearms and Explosives; U.S. Customs and Border Protection; U.S. Secret Service; the U.S. Marshals Service; New York National Guard; the Clarkstown Police Department; U.S. Coast Guard; Port Washington Police Department; and New York State Department of Corrections and Community Supervision.

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

Defense counsel: Genesis Peduto Esq., North Bergen, New Jersey

TRENTON, N.J. – A Monmouth County, New Jersey, man today admitted his role in a conspiracy to operate a gambling enterprise, U.S. Attorney Craig Carpenito announced.

John Dougherty, 55, of Keyport, New Jersey, pleaded guilty before U.S. District Judge Anne E. Thompson in Trenton federal court to an information charging him with one count of conspiracy to use facilities in interstate commerce to carry on a business enterprise involving gambling in violation of New Jersey law.

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

From January 2011 to October 2017, Dougherty conspired with an unnamed New Jersey resident (“Individual 1”). Acting as Individual 1’s agent for their gambling business, Dougherty had his own group of bettors who, with Individual 1’s knowledge and assistance, were given access to a website to conduct sports betting with their own usernames and passwords.

Dougherty used money provided by Individual 1 to pay bets won by Dougherty’s bettors. Dougherty also collected money from his bettors for bets they lost and then met with Individual 1 in various locations in New Jersey to share that money.

Dougherty and Individual 1 agreed to use various facilities in interstate commerce to carry on their gambling business, including the internet, cellular telephones used for interstate calls and text messaging, and an overnight delivery service. At various times, Individual 1 changed the cell phone number that he used to communicate with Dougherty and referred to himself in text messages by a code name. After being informed by Dougherty about an expected delivery of “35K” from one of Dougherty’s bettors, Individual 1 sent Dougherty a text message, “Let me know when the eagle has landed.” Later that same day, Dougherty sent Individual 1 a text message with a photograph of the UPS Express Box containing a substantial amount of cash sent by his bettor and with the note, “Eagle has landed. Gonna count now.”

The charge of conspiring to use facilities in interstate commerce to carry on a gambling business in violation of local state law carries a maximum potential penalty of five years in prison and a $250,000 fine. Dougherty forfeited $80,000 to the United States. Sentencing is scheduled for May 6, 2020.

U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark; and special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge John R. Tafur, with the investigation leading to today’s guilty plea.

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

Defense counsel: Keith G. Oliver Esq., Middletown, New Jersey

NEWARK, N.J. – Two Irvington, New Jersey, men, one of whom is currently attending the Irvington Fire Academy in order to become a firefighter, have been charged for operating a “mill” for the manufacture of illegal narcotic pills in an Irvington residence, U.S. Attorney Craig Carpenito announced.

Elijah Lee, 27, who was in training to become a firefighter with the Irvington Fire Department, and Immanuel Majerska, 37, were arrested Jan. 30, 2020, and charged with conspiring to distribute methylenedioxymethamphetamine, commonly referred to as “ecstasy,” or “MDMA.” The two defendants made their initial appearance today before U.S. Magistrate Judge Joseph A. Dickson.  Lee was released on bail and Majerska was detained.     

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

The defendants allegedly manufactured MDMA pills in the basement of Lee’s residence. Law enforcement officers recovered two “presses” capable of producing pills from raw ingredients, multiple kilograms of bulk suspected MDMA powder, and numerous pills of suspected MDMA. Law enforcement officers also recovered a loaded firearm at Lee’s residence in a dresser in Majerska’s room. Majerska was in possession of approximately 1,000 suspected MDMA pills. 

The conspiracy charge carries a maximum penalty of twenty years in prison and a $1 million fine.      

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

U.S. Attorney Craig Carpenito credited special agents of the U.S. Drug Enforcement Administration, Newark Division, under the direction of Special Agent in Charge Susan A. Gibson; postal inspectors of the U.S. Postal Inspection Service, Newark Division, under the direction of Inspector in Charge James Buthorn; special agents of the U.S. Department of Homeland Security, Homeland Security Investigations (HSI), New York, under the direction of Peter C. Fitzhugh,  with the investigation leading to today’s charges. He also thanked the Essex County Sheriff’s Department the Irvington and Union police departments for their assistance.

The government is represented by Assistant U.S. Attorney Andrew Macurdy and Special Assistant U.S. Attorney Keith Travers of the U.S. Attorney’s Office ODETF Unit in Newark.

NEWARK, N.J. – A Union County man was arrested today for bribing a U.S. Postal Service (USPS) employee to steal check books, credit cards, and electronics from the mail, U.S. Attorney Craig Carpenito announced.

Jabre Beauvoir, 21, of Elizabeth, New Jersey, is charged by complaint with one count of bribery and one count of receiving stolen mail. He is scheduled to appear this afternoon before U.S. Magistrate Judge Joseph A. Dickson in Newark federal court.

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

Between May 2019 and September 2019, Beauvoir offered bribes to USPS employees to steal envelopes and packages containing check books, credit cards, and electronics, such as Apple iPhones. Text messages showed Beauvoir instructing a USPS employees to look for certain types of mailings containing material to be stolen.

The bribery charge is punishable by a maximum potential penalty of 15 years in prison. The receipt of stolen mail charge is punishable by a maximum potential penalty of five years in prison. Both charges are additionally punishable by a maximum $250,000 fine.

U.S. Attorney Carpenito credited postal inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge James Buthorn, and special agents with the USPS-Office of Inspector General, under the direction of Special Agent in Charge Matthew Modafferi, Northeast Area Field Office, with the investigation leading to today’s arrest. He also thanked the U.S. Secret Service, New Jersey State Police, the Elizabeth Police Department, and the Secaucus Police Department for their assistance.

The government is represented by Assistant U.S. Attorney Elaine K. Lou of the Special Prosecutions Division in Newark.

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

CAMDEN, N.J. – The owner of a Wildwood Crest, New Jersey, pizzeria today admitted five counts of filing a false income tax return, U.S. Attorney Craig Carpenito announced.

Giuseppe D’Arancio, 60, of Cape May Court House, New Jersey, pleaded guilty before U.S. District Judge Joseph H. Rodriguez in Camden federal court to an information charging him with five counts of filing a false income tax return for tax years 2012 through 2016.

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

D’Arancio and another individual owned and operated a pizzeria and kept two sets of accounting books. For tax years 2012 through 2016, D’Arancio knowingly filed false tax returns which underreported the pizzeria’s taxable income by approximately $1.2 million. As a result, D’Arancio failed to pay more than $425,000 in income taxes.

Each of the five counts of filing a false tax return carries a maximum potential penalty of three years in prison, and a fine of the greater of $100,000, twice the gross profits to D’Arancio or twice the gross losses to the victim of his offense. Sentencing is scheduled for May 4, 2020.

U.S. Attorney Carpenito credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge John R. Tafur, with the investigation leading to today’s guilty plea.

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

Defense counsel: Jerome A. Ballarotto Esq., Trenton

NEWARK, N.J. – A Lebanon, Indiana, man was indicted today for attempting to coerce an individual he thought was a 14-year old boy into engaging in sexual activity, U.S. Attorney Craig Carpenito announced.

Randal Wise, 43, is charged by indictment with one count of attempted online enticement of a minor to engage in criminal sexual conduct.

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

On Oct. 25, 2019, Wise sent messages via an online dating application to an individual who told Wise that he was a 14-year-old boy in the eighth grade. Unbeknownst to Wise, the individual was an undercover agent (UC) posing as a minor victim. Wise engaged in sexual conversations with the UC and sent photographs of his genitals to the UC. Wise also asked the UC to send nude photographs and invited the UC to his hotel room. The following day, Wise again contacted the UC via the dating application and made arrangements to meet in person at a residence in Somerset, New Jersey. When Wise arrived at the house, he was arrested by law enforcement agents.

The attempted online enticement of a minor charge carries a mandatory minimum prison sentence of 10 years, a maximum potential penalty of life in prison, and a $250,000 fine.

U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, with the investigation leading to today’s indictment. He also thanked the Somerset County Prosecutor’s Office, under the direction of Prosecutor Michael Robertson, for its assistance.

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

The government is represented by Assistant U.S. Attorney Patricia Astorga of the U.S. Attorney’s Office’s Criminal Division.

CAMDEN, N.J. – A member of a Camden drug-trafficking organization pleaded guilty today to distributing significant amounts of illegal drugs in Camden, U.S. Attorney Craig Carpenito announced.

Carlos Perez, 46, of Pennsauken, New Jersey, admitted his role in a drug trafficking conspiracy that was based on the 500 block of Pine Street in Camden; he pleaded guilty before U.S. District Judge Renée Marie Bumb in Camden federal court to an information charging him with one count of conspiracy to distribute and possess with intent to distribute heroin, crack cocaine, fentanyl and powder cocaine.

Twelve other members of the drug-trafficking conspiracy – Ronnie Lopez, Nelson Salcedo, Paul Salcedo, Waldemar Garcia, William Carrillo, Elisa Rivera, Ramon Velez, Naeem Sadler, Jasmin Velez, Jameel Byng, Kaliel Johnson, and David Velez – previously have pleaded guilty in this case. The charges against six other defendants remain pending.

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

Members of the drug-trafficking organization sold heroin, crack cocaine, powder cocaine, and fentanyl – in and around Camden. An investigation led by the FBI used surveillance tactics, confidential informants, consensual recordings, over 40 controlled drug purchases, record checks, a GPS vehicle tracker, and several court-authorized wiretaps to uncover the operations of the Camden drug-trafficking organization.

The count to which Perez pleaded guilty carries a mandatory penalty of 10 years in prison, a maximum potential penalty of a life in prison, and a $10 million fine. His sentencing is scheduled for May 4, 2020.

U.S. Attorney Craig Carpenito credited special agents of the FBI’s South Jersey Violent Offender and Gang Task Force, South Jersey Resident Agency, under the direction of Special Agent in Charge Michael T. Harpster in Philadelphia; the Camden County Police Department, under the direction of Chief Joseph Wysocki; the Camden County Prosecutor’s Office, under the direction of Acting Prosecutor Jill S. Mayer; the Camden County Sheriff’s Department, under the direction of Sheriff Gilbert L. Wilson; the Cherry Hill Police Department, under the direction of Chief William P. Monaghan; and the N.J. State Police, under the direction of Col. Patrick J. Callahan, with the investigation leading to today’s guilty pleas. He also thanked the Drug Enforcement Administration, the U.S. Marshals Service, and the Department of Homeland Security for their assistance.

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

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

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

Defense counsel: Teri Lodge Esq., Marlton, New Jersey

NEWARK, N.J. – Three New Jersey men today admitted their roles in a Passaic County cocaine distribution conspiracy, U.S. Attorney Craig Carpenito announced.

Narcisco Ramirez, 46, of Passaic, Kiuny Perez, 42, of Rockaway Township, and Victor Pimentel, 44, of Parsippany, each pleaded guilty before U.S. District Judge Claire C. Cecchi in Newark federal court to separate criminal informations charging them with conspiracy to distribute cocaine.

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

The defendants were part of a conspiracy to distribute large quantities of cocaine in and around Passaic County. In November 2017, law enforcement officers observed Ramirez and Perez meet at a location in Passaic and exchange a package containing cocaine. Later that day, officers stopped Ramirez’s car and found one kilogram of cocaine on the front seat and two additional kilograms on his right leg and waist band. A search of Ramirez’s residence revealed another two kilograms of cocaine and $89,000 in cash. Law enforcement officers also stopped Perez’s vehicle and found cocaine in a hidden compartment underneath the dashboard. Law enforcement officers also discovered $297,350 in cash in Perez’s residence. A search of Pimentel’s residence revealed over 20 kilograms of cocaine, drug paraphernalia, and $322,000 in cash.

The drug conspiracy charge to which the defendants pleaded guilty carries a minimum of 10 years in prison and a maximum potential penalty of life in prison. Sentencing for Ramirez is scheduled for June 17, 2020; for Pimentel, July 22, 2020; and for Perez, June 16, 2020.

U.S. Attorney Carpenito credited special agents and task force officers of the U.S. Drug Enforcement Administration, New Jersey Division, under the direction of Special Agent in Charge Susan A. Gibson, and the Passaic County Prosecutor’s Office under the direction of Passaic County Prosecutor Camelia M. Valdes, with the investigation leading to today’s guilty pleas. He also thanked the Clifton Police Department for their assistance with the investigation.

The government is represented by Assistant U.S. Attorney Jonathan M. Peck of the U.S. Attorney’s Office Criminal Division in Newark.

Defense counsel: Perez: Anthony J. Iacullo Esq., Nutley, New Jersey
Pimentel: Lee Ginsberg Esq., New York
Ramirez: Lorraine Gauli-Rufo Esq., Verona, New Jersey

CAMDEN, N.J. – A Gloucester County, New Jersey, man today admitted mailing thousands of fraudulent invoices to hospitals, clinics and doctor’s offices throughout the United States, U.S. Attorney Craig Carpenito announced.

Robert S. Armstrong, 49, of Turnersville, New Jersey, pleaded guilty before U.S. District Judge Noel L. Hillman in Camden federal court to an information charging him with one count of mail fraud.

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

Operating under the name of Pinnacle Medical Supplies, Armstrong prepared and caused to be prepared fraudulent invoices billing hospitals, clinics and doctors’ offices across the United States for medical supplies such as diabetic test strips, EpiPens® and sanitizing wipes that the medical providers never ordered or received. In addition to billing for medical supplies never ordered or received, the invoices included fraudulent shipping information and a fraudulent address.

Armstrong then contracted with a legitimate bulk mailing company to mail more than 10,000 invoices to medical providers across the United States. Each invoice included a payment envelope preaddressed to Pinnacle Medical Supply at mail boxes Armstrong had set up with commercial mail receiving agents in Florida and Texas.

In response to the phony invoices, at least 943 medical providers sent $214,495 to Pinnacle Medical Supply. Armstrong deposited many of the checks from the victim medical providers into a bank account he opened in the name of Pinnacle Medical Supply.

The count of mail fraud is punishable by a maximum potential penalty of 20 years in prison and a fine of the greater of $250,000, twice the gross profits to Armstrong or twice the gross losses to the victims of his offense. In his plea agreement, Armstrong agreed to make full restitution to the victims.

This is Armstrong’s second mail fraud scheme. On Nov. 19, 2015, Armstrong was sentenced to 57 months in prison for committing a similar mail fraud scheme in the name of his company, Scholastic Book Supply. Armstrong caused the mailing of thousands of fraudulent invoices to schools throughout the United States billing them for books that the schools did not order or receive. Armstrong, who committed the present Pinnacle Medical Supply offense while on supervised release for the Scholastic Book Supply fraud, also pleaded guilty to three violations of his supervised release, for which he faces an additional 24 months in prison. Sentencing is scheduled for May 7, 2020.

U.S. Attorney Carpenito credited law enforcement officers of the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge John Walker in Philadelphia, with the investigation leading to today’s guilty plea.

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

Defense counsel: Richard Coughlin Esq., Assistant Federal Public Defender, Camden

TRENTON, N.J. – A doctor with offices in Washington, Hackettstown, and Succasunna, New Jersey, and his co-defendant today admitted their roles in a health care conspiracy to bill Medicare and private health insurance companies for medical services fraudulently claimed to have been provided by a licensed medical doctor, U.S. Attorney Craig Carpenito announced.

Parminderjeet S. Sandhu, 66, of Long Valley, New Jersey, and Paramjit Singh, 62, of Ohio, each pleaded guilty before U.S. District Judge Peter G. Sheridan in Trenton federal court to informations charging them with conspiracy to commit health care fraud.

“Dr. Sandhu defrauded Medicare and private insurers – and, worse, put his patients at risk – by allowing those patients to be treated by Singh, a man who had lost his medical license,” U.S. Attorney Carpenito said.  “Our office continues to work tirelessly to protect the integrity of federal healthcare programs and to make sure that patients do not suffer unnecessary harm from unscrupulous healthcare providers like these two defendants.”   

“It's frightening to think that your doctor could be putting your health in the hands of someone who is practicing without a license,” FBI Newark Special Agent in Charge Gregory W. Ehrie said. “Dr. Sandhu put his patients at risk while defrauding them as well as their insurers. The FBI remains committed to investing its resources to combat these types of schemes because patients have every right to expect that the care they are receiving is from a qualified medical professional who is acting in the patient's best interest. We urge anyone who is aware of healthcare fraud to contact us.”

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

From August 2014 through October 2017, Sandhu and Singh caused $2,211,975 to be billed to Medicare and private health insurance companies for medical services claimed to have been provided by Sandhu at Sandhu’s medical practice, Medical Care Associates Urgent Care Inc. In reality, those services were actually performed by Singh, whom Sandhu had hired to treat patients, despite knowing that Singh had lost his license to practice medicine anywhere in the United States. Sandhu issued prescriptions – including prescriptions for opioids – in Sandhu’s name for patients seen by Singh, even though Sandhu never met with the patients himself. As a result of the conspiracy, Sandhu’s medical practice was paid $1,162,253 for treatment fraudulently provided by Singh.

Under terms of the plea agreement, if the court accepts the plea, each defendant will be sentenced to 18 months in prison. In addition, Sandhu and Singh have each agreed to pay $1,162,253 in restitution. Sandhu has agreed to forfeiture of $829,561 and Singh has agreed to forfeiture of $332,692. Sentencing is scheduled for April 28, 2020.

U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Ehrie; the Warren County Prosecutor's Office, under the direction of Prosecutor James L. Pfeiffer; the New Jersey State Police, under the direction of Col. Patrick J. Callahan; and the Hackettstown, Roxbury and Washington Township police departments with the investigation leading to today’s guilty pleas.

The government is represented by Assistant U.S. Attorney Joseph N. Minish of the U.S. Attorney’s Office’s Asset Recovery and Money Laundering Unit.

CAMDEN, N.J. – A Burlington County, New Jersey, man was sentenced today to 126 months in prison for impersonating a federal agent while selling counterfeit coins and unlawfully importing counterfeit coins and bars into the United States, U.S. Attorney Craig Carpenito announced.

Jonathan A. Kirschner, a/k/a “Jonathan Kratcher,” 35, of Moorestown, New Jersey, previously pleaded guilty before U.S. District Judge Robert B. Kugler to an information charging him with one count of falsely impersonating an agent of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and one count of unlawfully bringing counterfeit coins and bars into the United States. Judge Kugler imposed the sentence today in Camden federal court. Kirschner has been detained since September 2018 after violating his conditions of pretrial release.

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

Kirschner admitted that on May 9, 2017, he sold fake gold bars to a coin collector (Victim 1) for $11,000 in cash. Kirschner wore an ATF badge on a chain around his neck and claimed to be an ATF agent in written correspondence with Victim 1 and when they met in person. Kirschner also admitted that he sold 49 counterfeit Morgan dollar coins to two people (Victims 2 and 3) in Mt. Laurel, New Jersey, on June 4, 2017.

Kirschner told Victims 2 and 3, “I have my badge on,” when providing descriptive information so that Victims 2 and 3 could recognize Kirschner. He admitted that he pretended to be an ATF agent to put his victims at ease in purchasing what Kirschner claimed were gold coins and bars when, in reality, the coins and bars were fake. Kirschner admitted unlawfully bringing counterfeit coins and bars into the United States by importing multiple, falsely manifested packages from other countries, including China.

Judge Kugler also sentenced Kirschner to three years of supervised release, ordered him to pay restitution of $14,600, and ordered forfeiture of all of the counterfeit items.

U.S. Attorney Carpenito credited ATF special agents, under the direction of Special Agent in Charge Charlie J. Patterson, Newark Field Division; and special agents of the U.S. Department of Homeland Security, Homeland Security Investigations (HSI), Cherry Hill Office, under the direction of Special Agent in Charge Brian A. Michael, with the investigation leading to today’s sentencing.

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

Defense counsel: Edward J. Crisonino Esq., Westmont, New Jersey

NEWARK, N.J. – The leader and the main treasurer of the Israelite Church of God in Jesus Christ were sentenced to federal prison today for their respective roles in a scheme in which both men caused the church to pay millions of dollars in personal expenses for the leader that the leader then omitted from his personal tax returns, U.S Attorney Craig Carpenito announced.

Jermaine Grant, 44, of Burlington Township, New Jersey, was sentenced to 18 months in prison and Lincoln Warrington, 49, of Bergen County, New Jersey, was sentenced to 12 months and one day in prison. Both men previously pleaded guilty before U.S. District Court Judge William J. Martini to Count One of the indictment against them, charging them with conspiring to defraud the United States. Judge Martini imposed the sentence today in Newark federal court.

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

Grant and Warrington used their leadership positions in the church to divert to Grant millions of dollars belonging to the church and its members for Grant’s personal use and benefit. The defendants used a variety of methods to carry out the scheme. For example, Grant and Warrington created a purported entertainment company that portrayed Grant as an industry mogul whose wealth was derived from his success in the industry, thereby concealing from church members that his lifestyle was supported entirely by the church and donations from its members. Grant and Warrington also used the church’s money to pay Grant’s other personal expenses, including payments for rental real estate properties, vacations, high-end luxury items, and private school tuition for Grant’s minor children. Grant, with Warrington’s assistance, then omitted these benefits from his individual income tax returns, resulting in the evasion of a substantial amount of tax due and owing to the United States. In total, Grant and Warrington concealed millions of dollars in income from the IRS, and failed to pay at least $250,000 in taxes.

The plea agreements in this matter include a requirement that the church will develop and present to the United States a plan designed to ensure the church’s compliance with applicable federal income tax laws going forward. Before the United States returns to the church certain cash and property seized during execution of the search warrants in this case, the compliance plan must address the disposition of that cash and property and ensure that they are returned for the benefit of the church rather than for the personal benefit of Jermaine Grant or any other individual.

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

U.S. Attorney Carpenito credited special agents of the FBI’s Newark Division, under the direction of Special Agent in Charge Gregory W. Ehrie, and IRS-Criminal Investigation, under the direction of Special Agent in Charge John R. Tafur, with the investigation leading to today’s sentencings.

The government is represented by Assistant U.S. Attorney Margaret A. Mahoney, Senior Trial Counsel for the National Security Unit in Newark, and First Assistant U.S. Attorney Rachael A. Honig.

Defense counsel: Grant: Gerald Lefcourt Esq., New York
Warrington: Richard Levitt Esq., New York

NEWARK, N.J. – A former executive at a New Jersey publication company pleaded guilty today to defrauding the company by embezzling millions of dollars for his personal benefit, U.S. Attorney Craig Carpenito announced.

Nestor Charriez, 60, of Scotch Plains, New Jersey, pleaded guilty before U.S. District Judge Kevin McNulty in Newark federal court to an information charging him with one count of wire fraud.

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

Charriez was a longtime senior employee of Victim-Company 1, a publication company based in New Jersey. Charriez’s financial responsibilities at Victim-Company 1 included overseeing and managing employee payroll. He would submit Victim-Company 1’s payroll information to an outside payroll company, which would process Victim-Company 1’s payroll requests.

From at least 2002 through June 2019, Charriez defrauded Victim-Company 1 by embezzling millions of dollars through unauthorized “bonus” payments to himself. He submitted false payroll instructions to Victim-Company 1’s outside payroll provider, indicating that Charriez was entitled to massive bonuses – hundreds of thousands of dollars at a time – which Victim-Company-1 had not approved.

Charriez carried out this scheme on numerous occasions over nearly two decades. In total, Charriez stole more than $48 million from Victim-Company 1 and spent the money he stole on personal expenses.

The wire fraud count to which Charriez pleaded guilty carries a maximum potential penalty of 20 years in prison and $250,000 fine, or twice the gross gain or loss from the offense. Sentencing is scheduled for May 11, 2020.

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

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

Defense counsel: Robert Stahl Esq., Westfield, New Jersey

CAMDEN, N.J. – A Camden County, New Jersey, man was sentenced today to 37 months in prison for his role in conspiring to distribute oxycodone, U.S. Attorney Craig Carpenito announced.

Daniel Watson, 41, of Bellmawr, New Jersey, previously pleaded guilty to an information charging him with one count of conspiracy to distribute and possess with intent to distribute oxycodone. U.S. District Judge Robert B. Kugler imposed the sentence today in Camden federal court.

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

From December 2017 through June 26, 2018, Watson and others engaged in a conspiracy which resulted in the trafficking of 1,180 oxycodone pills – 680 of which were unadulterated oxycodone and 500 of which were pressed pills mixed with hydrocodone, codeine, and methylphenidate. As part of the investigation, law enforcement observed Watson’s participation in eight controlled purchases. Three of these controlled transactions were carried out by the defendants in front of the major Philadelphia hospital where co-defendant Anthony Pepe was employed as the chief surgical technologist and while he was dressed in his hospital scrubs. Pepe was sentenced Nov. 20, 2019, to 30 months in prison.

In addition to the prison term, Judge Kugler sentenced Watson to three years of supervised release.

The government is represented by Assistant U.S. Attorney Christina O. Hud of the U.S. Attorney’s Office Criminal Division in Camden.

Defense counsel: Christopher O’Malley Esq., Assistant Federal Public Defender, Camden

TRENTON, N.J. – A Pennsylvania man and two Mercer County, New Jersey, men today admitted their roles distributing heroin in and around Trenton, U.S. Attorney Craig Carpenito announced.   

Duane Paulino-Escalera, 27, of Philadelphia, and Izae Alford, 21, of Trenton, pleaded guilty before U.S. District Judge Michael A. Shipp in Trenton federal court to separate informations charging each of them with one count of conspiracy to distribute and possess with intent to distribute 100 grams or more of heroin. Darryl Young, 27, of Trenton, pleaded guilty before Judge Shipp to an information charging him with one count of conspiracy to distribute and possess with intent to distribute a quantity of heroin.

In June 2019, Paulino-Escalera, Alford, Young, and eight others were charged by complaint with conspiracy to distribute heroin. Paulino-Escalera, Alford and Young are the first three defendants to plead guilty.

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

From June 2018 through May 2019, the defendants and others engaged in a heroin trafficking conspiracy in the areas of Stuyvesant, Hoffman and Highland avenues in Trenton, as well as in the area of Barbary Road in Philadelphia.

Through the interception of telephone calls and text messages pursuant to court-authorized wiretap orders, controlled purchases of heroin, the use of confidential sources of information, and other investigative techniques, law enforcement learned that Robert M. Gbanapolor obtained regular supplies of “bricks” of heroin (approximately 50 smaller, individually packaged glassine envelopes or baggies containing heroin) from Paulino-Escalera, whom Gbanapolor referred to as “Papi.”

Members of the conspiracy distributed the heroin supplied by Paulino-Escalera to other conspirators, distributors, sub-dealers, and end users in and around Trenton. Law enforcement officers intercepted numerous discussions among the conspirators regarding issues such as heroin quality and availability, branding, quantity and customer satisfaction. 

The heroin conspiracy counts to which Paulino-Escalera and Alford pleaded guilty each carry a statutory mandatory minimum term of five years in prison, a maximum potential penalty of 40 years in prison, and a maximum fine of $5 million. The heroin conspiracy count to which Young pleaded guilty carries a maximum potential penalty of 20 years in prison, and a maximum fine of $1 million. Sentencings for Paulino-Escalera and Alford are scheduled for May 4, 2020; sentencing for Young is scheduled for May 6, 2020. 

U.S. Attorney Carpenito credited special agents of the U.S. Drug Enforcement Administration, New Jersey Division, Camden Resident Office, under the direction of Special Agent in Charge Susan A. Gibson; and task force officers of the Trenton Police Department, under the direction of Police Director Sheilah Coley, with the investigation leading to today’s guilty pleas. He also thanked detectives and officers of the Gloucester County Prosecutor’s Office, under the direction of Prosecutor Charles A. Fiore; detectives and officers of the Gloucester Township Police Department, under the direction of Chief Harry Earle; members of the N.J. State Police, under the direction of Col. Patrick J. Callahan; detectives and officers of the Bordentown Township Police Department, under the direction of Chief Brian Pesce; and special agents of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Charlie J. Patterson for their assistance.

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

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

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

George Gilmore, a partner at an Ocean County, New Jersey, law firm, was sentenced today to one year and one day in prison for his conviction on two counts of failing to pay over payroll taxes withheld from employees to the IRS and one count of making false statements on a bank loan application submitted to Ocean First Bank N.A.

On April 17, 2019, Gilmore, 70, of Toms River, New Jersey, was acquitted of two counts of filing false tax returns for calendar years 2013 and 2014; the jury could not reach a unanimous verdict on one count of income tax evasion for calendar years 2013, 2014, and 2015. The verdicts were returned following a trial that began April 1, 2019, before U.S. District Judge Anne E. Thompson, who imposed the sentence today in Trenton federal court.

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

Gilmore worked as an equity partner and shareholder at Gilmore & Monahan P.A., a law firm in Toms River, where he exercised primary control over the firm’s financial affairs. Because he exercised significant control over the law firm’s financial affairs, Gilmore was responsible for withholding payroll taxes from the gross salary and wages of the law firm’s employees to cover individual income, Social Security and Medicare tax obligations. For the tax quarters ending March 31, 2016, and June 30, 2016, the law firm withheld tax payments from its employees’ checks, but Gilmore failed to pay over in full the payroll taxes due to the IRS. 

Gilmore also submitted a loan application to Ocean First Bank containing false statements. On Nov. 21, 2014, Gilmore reviewed, signed, and submitted to Ocean First Bank a Uniform Residential Loan Application (URLA) to obtain refinancing of a mortgage loan for $1.5 million with a “cash out” provision that provided Gilmore would obtain cash from the loan. On Jan. 22, 2015, Gilmore submitted another URLA updating the initial application. Gilmore failed to disclose his outstanding 2013 tax liabilities and personal loans that he had obtained from others on the URLAs. Gilmore received $572,000 from the cash out portion of the loan. 

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

First Assistant U.S. Attorney Honig for the District of New Jersey and Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge John R. Tafur, special agents with the U.S. Attorney’s Office under the direction of Supervisory Special Agent Thomas Mahoney, and special agents of the FBI Red Bank Resident Agency, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, with the investigation leading to today’s sentencing.

The government is represented by Deputy U.S. Attorney Matthew J. Skahill; Assistant U.S. Attorney Jihee G. Suh of the U.S. Attorney’s Office Special Prosecutions Division; and Trial Attorney Thomas F. Koelbl of the U.S. Department of Justice - Tax Division. 

TRENTON, N.J. – George Gilmore, a partner at an Ocean County law firm, was sentenced today to one year and one day in prison for his conviction on two counts of failing to pay over payroll taxes withheld from employees to the IRS and one count of making false statements on a bank loan application submitted to Ocean First Bank N.A., First Assistant U.S. Attorney Rachael A. Honig announced.

On April 17, 2019, Gilmore, 70, of Toms River, New Jersey, was acquitted of two counts of filing false tax returns for calendar years 2013 and 2014; the jury could not reach a unanimous verdict on one count of income tax evasion for calendar years 2013, 2014, and 2015. The verdicts were returned following a trial that began April 1, 2019, before U.S. District Judge Anne E. Thompson, who imposed the sentence today in Trenton federal court.

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

Gilmore worked as an equity partner and shareholder at Gilmore & Monahan P.A., a law firm in Toms River, where he exercised primary control over the firm’s financial affairs. Because he exercised significant control over the law firm’s financial affairs, Gilmore was responsible for withholding payroll taxes from the gross salary and wages of the law firm’s employees to cover individual income, Social Security and Medicare tax obligations. For the tax quarters ending March 31, 2016, and June 30, 2016, the law firm withheld tax payments from its employees’ checks, but Gilmore failed to pay over in full the payroll taxes due to the IRS.

Gilmore also submitted a loan application to Ocean First Bank containing false statements. On Nov. 21, 2014, Gilmore reviewed, signed, and submitted to Ocean First Bank a Uniform Residential Loan Application (URLA) to obtain refinancing of a mortgage loan for $1.5 million with a “cash out” provision that provided Gilmore would obtain cash from the loan. On Jan. 22, 2015, Gilmore submitted another URLA updating the initial application. Gilmore failed to disclose his outstanding 2013 tax liabilities and personal loans that he had obtained from others on the URLAs. Gilmore received $572,000 from the cash out portion of the loan.

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

First Assistant U.S. Attorney Honig credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge John R. Tafur, special agents with U.S. Attorney’s Office under the direction of Supervisory Special Agent Thomas Mahoney, and special agents of the FBI Red Bank Resident Agency, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, with the investigation leading to today’s sentencing.

The government is represented by Deputy U.S. Attorney Matthew J. Skahill; Assistant U.S. Attorney Jihee G. Suh of the U.S. Attorney’s Office Special Prosecutions Division; and Trial Attorney Thomas F. Koelbl of the U.S. Department of Justice - Tax Division.

Defense counsel: Kevin H. Marino Esq., Chatham, New Jersey

TRENTON, N.J. – A Mercer County, New Jersey, man was arraigned today on an indictment charging him with unlawful possession of a firearm, U.S. Attorney Craig Carpenito announced.

Omar Kennedy, 38, of Trenton, is charged by indictment with one count of being a felon in possession of a firearm. He was arraigned today before U.S. District Judge Anne E. Thompson in Trenton federal court and pleaded not guilty. He remains detained.

According to the indictment, returned Jan. 15, 2020:

On May 23, 2019, Kennedy possessed a firearm after having previously been convicted of a crime punishable by imprisonment for a term exceeding one year.

The charge of possessing a firearm while being a convicted felon carries a maximum potential penalty of 10 years in prison and a $250,000 fine.

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

U.S. Attorney Carpenito credited special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Charlie J. Patterson, Newark Field Division, with the investigation leading to the charges.

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

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

Defense counsel: Andrea Bergman Esq., Assistant Federal Public Defender, Trenton

NEWARK, N.J. – A Bronx, New York, man today admitted participating in a conspiracy to distribute heroin and fentanyl from a drug mill in the Bronx to locations in New Jersey, U.S. Attorney Craig Carpenito announced.

Jose Antonio Vasquez Pena, a/k/a “Tono,” 47, pleaded guilty before U.S. District Judge Esther Salas in Newark federal court to an indictment charging him with one count of conspiracy to distribute 400 grams or more of a mixture and substance containing fentanyl. Dilson Vazquez Genao, 23, Eddie Urena Rodriguez, 35, and Francisco Mercedes Gil, 31, also of the Bronx, New York, pleaded guilty before Judge Salas to the same charges in September 2019.

Three other individuals – Jhan Carlos Capellan Maldonado, 31, Daury Contreras Ulerio, 34, and Reimon Genao Rosario, 23 – were indicted on the same charge as Pena in August 2019. Their cases are pending.

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

In early February 2019, law enforcement officers learned that Maldonado used an apartment in Bronx to store, mix, and package heroin and fentanyl in distribution quantities. Pena stayed at the apartment in order to safeguard the narcotics and narcotics supplies. Maldonado employed approximately five workers at a time—including Rodriguez, Ulerio, Rosario, Gil, and Genao—to assist in preparing the heroin and fentanyl for distribution, which Maldonado then distributed to customers in New Jersey.

On Feb. 25, 2019, law enforcement officers saw Maldonado drive to a retail store and emerge with several full shopping bags and then drive to the apartment. Genoa came out of the building and met with Maldonado, who got out of his vehicle and gave Genoa the plastic shopping bags. Through its investigation, law enforcement later learned that the plastic shopping bags contained materials to package heroin and fentanyl.

Genoa went back inside the building and was followed by law enforcement officers, who watched as Genoa entered Maldonado’s apartment with a key, still carrying the shopping bags. On Feb. 27, 2019, law enforcement searched Maldonado’s apartment and found seven individuals inside, including Rodriguez, Ulerio, Rosario, Gil, Maldonado, Pena, and Genao. All seven defendants attempted to escape out a window, but all but one – Rosario – were apprehended and arrested by law enforcement officers waiting outside. Rosario was arrested at a later date. Law enforcement recovered nearly a kilogram of fentanyl from the apartment, along with materials to grind and package fentanyl for distribution.

Each defendant faces a mandatory minimum penalty of 10 years in prison, a maximum potential penalty of life in prison, and a $10 million fine. Sentencing is scheduled for April 27, 2020.

U.S. Attorney Craig Carpenito credited the U.S. Department of Homeland Security, Homeland Security Investigations (HSI)’s New Jersey Division, under the direction of Special Agent in Charge Brian Michael, with the investigation leading to the charges.

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

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

Defense counsel: Peter Carter Esq., Assistant Federal Public Defender, Newark

NEWARK, N.J. – An Essex County, New Jersey, woman and a Canadian man were indicted today for their roles in a securities fraud scheme that induced victims to invest $30 million worth of cash and cryptocurrency based on fraudulent misrepresentations, U.S. Attorney Craig Carpenito announced.

Edith Pardo, 68, of Bloomfield, New Jersey, and Boaz Manor, 46, of Toronto, Canada, are each charged with one count of conspiring to commit wire fraud, three counts of wire fraud, and one count of securities fraud in connection with a blockchain technology company. Pardo was arrested today by special agents of the FBI and is scheduled to appear this afternoon before U.S. Magistrate Judge Steven C. Mannion in Newark federal court. Manor remains at large.

According to the indictment:

In 2003, Manor co-founded and managed a hedge fund based in Toronto, Canada. In connection with his work at that hedge fund, Manor pleaded guilty in Canada to one count of transferring monies in breach of trust and one count of disobeying a court order. He was sentenced to four years in prison.

Following his release from prison, Manor founded a business, CG Blockchain Inc., and began creating a product called ComplianceGuard, which was purportedly designed provide hedge funds with a blockchain-based auditing tool. While raising money for CG Blockchain, Manor hid his true identity and criminal past from investors and others by using a variety of aliases, including “Shaun MacDonald.” He also changed his appearance by darkening his hair and growing a beard.

Manor secured a significant portion, if not all, of the initial seed money in CG Blockchain from a close family member. In order to conceal the source of this money, Manor recruited Pardo to act as a conduit for the money. The defendants misrepresented to potential CG Blockchain investors that Pardo was an independently wealthy investor who provided millions of dollars in seed money to CG Blockchain.

The defendants also misrepresented that 20 hedge funds were using ComplianceGuard and were each paying CG Blockchain a $1 million yearly fee. In reality, none of the 20 hedge funds paid fees to CG Blockchain, and many of the hedge funds did not receive or use ComplianceGuard at all.

In 2017, CG Blockchain launched an “Initial Coin Offering” (ICO), and began marketing its new product – “Blockchain Terminal” – to potential investors. CG Blockchain described Blockchain Terminal as a computer terminal that allowed hedge funds and financial institutions to trade and manage cryptocurrency. Manor actively marketed the token to investors, while failing to disclose his true identity or his role at CG Blockchain. The defendants also misrepresented to ICO investors that the Blockchain Terminal had “Actual Clients” and was “installed at 20 hedge funds.”

In 2018, CG Blockchain publicly announced that it had raised $30 million from its ICO. Following the ICO, CG Blockchain investors learned of Manor’s true identity and criminal past. When confronted by an investor, Manor admitted that he had hidden his real identity and criminal past because disclosure of that information would have resulted in “the company being destroyed.”

The conspiracy and wire fraud counts in the indictment carry a maximum potential penalty of 20 years in prison and $250,000 fine, or twice the gross gain or loss from the offense. The securities fraud count carries a potential penalty of 20 years in prison and a $5 million fine.

The U.S. Securities and Exchange Commission (SEC) also filed a civil complaint against Manor and Pardo today based on the same conduct.

U.S. Attorney Craig Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, with the investigation leading to today’s charges. He also thanked the SEC for the assistance provided by its Enforcement Division.

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

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

CAMDEN, N.J. – A North Carolina man was arrested today on charges that he brought a loaded handgun and machine gun into a federal facility, and illegally transported the machine gun into New Jersey, U.S. Attorney Craig Carpenito announced.

Dustin Peters, 25, a former Marine, was arrested in Cape May County, New Jersey, and is charged by complaint with one count of unlawful possession of a firearm in a federal facility and one count of unlawful interstate transport of a machine gun. Peters is scheduled to have an initial appearance on Jan. 21, 2020, before U.S. Magistrate Judge Joel Schneider in Camden federal court.

According to documents filed in this case:

On Jan. 9, 2020, Peters attempted to enter the U.S. Coast Guard Training Center Cape May. During a routine security search of his vehicle, Coast Guard personnel recovered a modified, fully automatic AK-47 rifle, a loaded 9mm Century Arms handgun, multiple large capacity magazines, ammunition, a ballistic vest, gas mask and canister, three boxes of ammunition, a nylon chest rig, and other items. Peters told law enforcement agents that he purchased the AK-47 in Virginia, but modified it on his own to become fully automatic.

The counts of possession of a firearm on a federal facility carries a maximum penalty of one year in prison and a $100,000 fine. The unlawful interstate transport of a machine gun carries a maximum penalty of five years in prison and a $250,000 fine.

U.S. Attorney Carpenito credited special agents of the FBI, Atlantic City Resident Agency’s Joint Terrorism Task Force, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark; members of the U.S. Coast Guard Investigative Service, under the direction of Resident Agent in Charge Rodney E. Newcomer; the Cape May Police Department under the direction of Chief Anthony G. Marino Jr.; and the Cape May County Prosecutor’s Office, under the direction of Prosecutor Jeffrey H. Sutherland, with the investigation leading to today’s charges.

The government is represented by Assistant U.S. Attorney Alisa Shver of the U.S. Attorney’s Office Criminal Division in Camden.

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

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

NEWARK, N.J. – A Georgia man today admitted his role in initiating a cyberattack known as a Distributed Denial of Service (DDoS) against a company that maintained servers in New Jersey, U.S. Attorney Craig Carpenito announced.

Tucker Preston, 22, of Macon, Georgia, pleaded guilty before U.S. District Judge William J. Martini in Newark federal court to an information charging him with one count of damaging protected computers by transmission of a program, code or command.

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

DDoS is a type of cyberattack that purposefully directs such a large volume of superfluous traffic to a victim’s web server or other computer system that it can slow or shut down service. In or around December 2015, Preston arranged for an entity that engages in DDoS attacks to initiate attacks against a company. The entity directed DDoS attacks against the victim company, causing damage and disrupting the victim’s business.

The count to which Preston pleaded guilty is punishable by a maximum penalty of 10 years in prison and a fine of up to $250,000 or twice the gross gain or loss from the offense. Sentencing is scheduled for May 7, 2020.

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

The government is represented by Assistant U.S. Attorney David E. Malagold of the U.S. Attorney’s Office Criminal Division.

Defense counsel: Ijeoma Eke Esq., Assistant Federal Public Defender, Newark

NEWARK, N.J. – A Dominican man was sentenced today to 34 months in prison for his role in a conspiracy to transport more than 100 grams of heroin from New York to New Jersey, U.S. Attorney Craig Carpenito announced.

Bienvenido Perez Lazala, 31, of the Dominican Republic, pleaded guilty before U.S. District Judge Brian R. Martinotti in Newark federal court to an information charging him with conspiracy to possess with intent to distribute more than 100 grams of heroin.

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

In January 2018, a Mexican narcotics trafficker provided another individual with Lazala’s name and identified Lazala as someone who could assist in establishing narcotics sales in New Jersey. Lazala was contacted and agreed to obtain heroin to sell in New Jersey.

On Feb. 5, 2018, following a series of intercepted calls, Lazala obtained 955.9 grams of heroin in Haverstraw, New York, for purposes of transporting it back to New Jersey. Lazala then sold the heroin to another individual, who, unbeknownst to Lazala, was a law enforcement officer.

In addition to the prison term, Judge Martinotti sentenced Lazala to two years of supervised release.

U.S. Attorney Carpenito credited special agents of the U.S. Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Brian Michael, with the investigation leading to today’s sentencing.

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

CAMDEN, N.J. – A Camden County, New Jersey, man today admitted sending obscene material to minors over the internet, U.S. Attorney Craig Carpenito announced.

Zackary McFerren, 28, of Winslow Township, New Jersey, pleaded guilty before U.S. District Judge Noel L. Hillman in Camden federal court to an information charging him with two counts of transferring obscene matter to minors, as well to violating the terms of his supervised release by contacting those minors.

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

McFerren admitted that he previously pleaded guilty to possessing child pornography and transferring obscene material to a minor and was sentenced Oct. 17, 2016, to 33 months in prison, to be followed by five years of supervised release, which started May 3, 2019.

McFerren acknowledged that the terms of his supervised release included not committing another federal crime; required him to submit to computer monitoring by the U.S. Probation Office and restricted his contact with minors.

McFerren admitted that starting on July 15, 2019, he used a mobile phone to communicate with an individual he believed to be a 13-year old girl living in New York. Unbeknownst to McFerren, he was actually communicating with an undercover FBI employee.  McFerren admitted that he had expressed an interest in having sex with the 13-year old girl and sent her obscene images of himself. McFerren acknowledged that his communicating with the person he believed to be a minor and sending the obscene photos was a violation of the terms of his supervised release.

McFerren also admitted to conduct from August 2015. McFerren admitted to using the “Kik” messaging application to communicate with other Kik users over the Internet. While using the Kik application, McFerren used the screen name “Emily” and begin communicating with an underage girl in the Eaton Rapids, Michigan, area. He exchanged obscene images with the girl. 

The charges to which McFerren pleaded guilty each carry a maximum potential penalty of 10 years in prison per count and a fine of $250,000. McFerren faces up to an additional four years for violating the term of supervised release from his previous conviction. Sentencing is scheduled for April 22, 2020.

U.S. Attorney Carpenito credited special agents and task force officers of the FBI, Newark Division’s Atlantic City Resident Agency, Child Exploitation Task Force, which is made up of FBI special agents and detectives from the Atlantic County Prosecutor’s Office, Atlantic County Sheriff’s Office, the New Jersey State Police, and the N.J. Department of Human Services Police, under the direction of FBI Special Agent in Charge Gregory W. Ehrie, with the investigation leading to today’s guilty plea. He also thanked FBI special agents and task force officers in the FBI Buffalo Division and officers and detective with the Eaton Rapids, Michigan, Police Department for their work on this investigation.

The government is represented by Senior Trial Counsel Jason M. Richardson of the U.S. Attorney’s Office Criminal Division in Camden.

NEWARK, N.J. – A Bergen County, New Jersey, woman today admitted participating in a conspiracy to commit health care fraud, U.S. Attorney Craig Carpenito announced.

Estela Blaustein, 55, of Mahwah, New Jersey, pleaded guilty today before U.S. District Judge Susan D. Wigenton in Newark federal court to an information charging her with one count of conspiracy to commit health care fraud with four individuals who have been previously charged by complaint in the District of New Jersey: Mark Filippone M.D., 71, of Wallington, New Jersey; Joseph Vangelas, a/k/a “Joseph Miller,” 33, of Fort Lee, New Jersey; Marlene Vangelas, 58, of River Vale, New Jersey; and Zachary Ohebshalom, 33, of Edgewater, New Jersey. The charges against those four defendants remain pending.

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

Beginning in November 2016, Blaustein participated in a scheme to obtain millions of dollars in health benefits from the federal workers’ compensation program by prescribing and dispensing expensive, but medically unnecessary, pain creams. Filippone treated hundreds of now-former U.S. Postal Service employees for injuries they purportedly suffered on the job. He allegedly facilitated their disability claims by submitting forms and medical reports to the Department of Labor, Office of Workers’ Compensation Program, for patients who were not, in fact, disabled.

Filippone also prescribed expensive topical pain creams, which were not needed or wanted by many of his patients. The information alleges that Filippone steered these prescriptions to a pharmacy in Fair Lawn, New Jersey, where Blaustein was the pharmacist-in-charge. The Fairlawn Pharmacy was owned and operated by Joseph Vangelas and Marlene Vangelas, who, along with Ohebshalom, directed Blaustein and others to research reimbursement rates within the federal workers’ compensation program for the ingredients of the pain creams in order to determine the most lucrative formulations. Joseph Vangelas, Marlene Vangelas, and Ohebshalom directed Blaustein and others to print prescription labels for Filippone to use with his patients. Filippone used the pre-printed labels and sent the prescriptions back to the Fair Lawn Pharmacy. To induce Filippone to prescribe the medically unnecessary pain creams in the exact formulations they desired, Joseph Vangelas and Marlene Vangelas purchased Filippone’s medical office and then permitted Filippone to continue to use the premises, for which he routinely failed to pay rent. Miller, the Vangelases, and Ohebshalom conspired to leverage the property to force Filippone to continue to send prescriptions to their pharmacy. Filippone continued to send prescriptions to the pharmacy, so long as Miller and the Vangelases permitted him to remain rent-free in the property.

The count of conspiracy to commit health care fraud is punishable by a maximum of 10 years in prison and a fine of $250,000, or twice the gross gain or loss derived from the offense, whichever is greater. As part of her plea agreement, Blaustein agreed that the charged healthcare fraud conspiracy caused losses of $1.5 million to $3.5 million. Sentencing is scheduled for April 22, 2020.

U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark; the U.S. Postal Service, Office of Inspector General, under the direction of Special Agent in Charge of the Northeast Area Field Office Matthew M. Modafferi; the Department of Labor, Office of Inspector General, New York Region, under the direction of Special Agent in Charge Michael C. Mikulka; and special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge John R. Tafur, with the investigation leading to the charges and today’s guilty plea.

The government is represented by Assistant U.S. Attorney Joshua L. Haber of the Healthcare Fraud Unit in the Criminal Division, Newark.

The charges and allegations in the information pertaining to Filippone, Joseph Vangelas, Marlene Vangelas, and Ohebshalom are merely accusations, and those four defendants are presumed innocent unless and until proven guilty.

Defense counsel: Jerome A. Ballarotto Esq., Trenton, New Jersey

NEWARK, N.J. – A Illinois man today admitted conspiring to transport heroin and cocaine to New Jersey, U.S. Attorney Craig Carpenito announced.

Daniel Gonzalez Maldonado, 25, of Carpentersville, Illinois, pleaded guilty before U.S. District Judge Susan D. Wigenton in Newark federal court to an information charging him with one count of conspiracy to distribute and possess with the intent to distribute one kilogram or more of heroin and 500 grams or more of cocaine.

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

On June 6, 2019, a conspirator paid Maldonado approximately $1,000 to drive the conspirator and a quantity of narcotics from Illinois to the East Coast. Maldonado allowed the conspirator to store approximately one kilogram of cocaine and approximately two kilograms of heroin in a Norristown, Pennsylvania, hotel room that was reserved in Maldonado’s name. The investigation revealed that at least one of these kilograms of narcotics would have been distributed in New Jersey.

The count to which Maldonado pleaded guilty carries a mandatory minimum sentence of 10 years in prison, a maximum sentence of life imprisonment and a fine of up to $10 million. Sentencing is scheduled for April 23, 2020.

U.S. Attorney Carpenito credited special agents of the Drug Enforcement Administration, under the direction of Special Agent in Charge Ray Donovan in New York, with the investigation leading to today’s guilty plea.

The arrest was the result of an investigation by the New York Strike Force, a crime-fighting unit comprising federal, state and local law enforcement agencies supported by the Organized Crime Drug Enforcement Task Force and the New York/New Jersey High Intensity Drug Trafficking Area.

The Strike Force is housed at the DEA’s New York Division and includes agents and officers of the DEA; the New York City Police Department; the New York State Police; Immigration and Customs Enforcement – Homeland Security Investigations; the U. S. Internal Revenue Service Criminal Investigation Division; the Bureau of Alcohol, Tobacco, Firearms and Explosives; U.S. Customs and Border Protection; U.S. Secret Service; the U.S. Marshals Service; New York National Guard; the Clarkstown Police Department; U.S. Coast Guard; Port Washington Police Department; and New York State Department of Corrections and Community Supervision.

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

TRENTON, N.J. – A former insurance broker with an office in Fort Lee, New Jersey, was sentenced today to six months in prison and six months of home confinement for defrauding Horizon Blue Cross Blue Shield, U.S. Attorney Craig Carpenito announced.

Lawrence Ackerman, 55, a resident of Old Tappan, New Jersey, previously pleaded guilty before U.S. District Judge Anne E. Thompson in Trenton federal court to a superseding information charging him with one count of health care fraud.

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

Ackerman was the chief operating officer of Atlantic Business Associates (ABA) and Atlantic Medical Associates (AMA), two “shell” companies through which he marketed health insurance nationally to people who were not his employees and therefore ineligible for health coverage. During the month of January 2011, he delivered $481,500 in health care benefits to ineligible participants.

As part of his plea, Ackerman must make restitution to Blue Cross Blue Shield for the fraudulent claims paid between 2009 and 2013. Ackerman originally was charged in a two-count indictment with conspiring to defraud Horizon Blue Cross Blue Shield of $5.6 million in fraudulent claims, and for defrauding the Local 2326 (UAW) Welfare Fund of $1 million in fraudulent claims. Those charges are now dismissed, and he is also obligated to pay restitution of $1 million to the Local 2326 Welfare Fund.

U.S. Attorney Carpenito credited special agents of the Department of Labor, Office of the Inspector General, under the direction of Special Agent in Charge Michael Mikulka; agents of the Employee Benefits Security Administration (EBSA), under the direction of Regional Director Darren Cohen; and agents of the Office of Labor Management Standards (OLMS), under the supervision of Regional Director Andriana Vamvakas, with the investigation leading to today’s sentencing.

The government is represented by Senior Litigation Counsel V. Grady O’Malley of the Organized Crime/Gangs Unit in Newark.