District of New Jersey

NEWARK, N.J. – A Morris County, New Jersey, man admitted today possessing bombs, precursor materials, and being a felon in possession of guns, U.S. Attorney Craig Carpenito announced.

Christopher Faschan, 31, of Landing, New Jersey, pleaded guilty before U.S. District Judge Brian R. Martinotti in Newark federal court to an information charging him with one count of unlawful possession of destructive devices and one count of being a felon in possession of firearms and ammunition.

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

On Feb. 1, 2019, Faschan drove to the home of a person identified in court documents as “Individual 1” in Stanhope, New Jersey, and displayed what he claimed to be a bomb. Shortly thereafter, Faschan detonated the bomb in the area of Lake Lackawanna in Stanhope.

On Feb. 4, 2019, law enforcement agents interviewed Faschan, who said that he had ignited the bomb. He described it as two pounds in weight and explained how he used and mixed Potassium Perchlorate, Aluminum Powder, and Tannerite to make several bombs that were in his home.

Law enforcement agents executed a court-authorized search of Faschan’s home and recovered a cache of weapons, ammunition, and firearms, including:

Firearms, Ammunition, and Large Capacity Magazines

• 9mm Smith and Wesson semi-automatic, Model 5, high-capacity handgun;

• 9mm Fabrique Nationale Herstal semi-automatic handgun, Model FNX-9;

• Mossberg 12-Gauge shotgun, Model 500;

• Savage .22 Caliber long rifle, Model 64;

• Sturm Ruger .22 Caliber handgun, Model Mark 1;

• .556 Caliber ammunition magazine with a 100-round capacity;

• Numerous pistol magazines loaded with 9mm hollow-point rounds.

 

Explosive Devices and Precursor Materials

• Device One, which contained explosive material inside a black container with BB fragmentation, and a green fuse protruding from the device in order to initiate the destructive device;

• Device Two, which contained several containers of lighter fluid affixed around explosive material in the center with a fuse protruding from the device.

• Four plastic containers labeled “exploding targets” containing a substance that appears to be Ammonium Nitrate;

• One package labeled “Thermite” containing separated chemicals;

• One container containing dark-colored powder labeled “Indian Dark;”

• One unlabeled plastic bag containing fine, dark-colored powder;

• One clear plastic container labeled “German Ecartk aluminum powder,”

• One plastic container labeled “Potassium Perchlorate;”

• Three mason jars containing a white substance labelled “KC104;”

• One package of Hobby Fuse;

• Two plastic containers containing sphere-shaped, gray energetic pellets;

• One red and white can labeled “FFg super fine black rifle powder;”

• Thirteen homemade MSeries pyrotechnic devices;

• Four improvised pyrotechnic shot shells;

• One Box labelled “10 flash banger rounds 37MM” containing 17 pyrotechnic shot shells;

• One plastic container containing suspected black powder;

• One plastic container containing dark colored fine powder;

• One bag containing electrical initiators.

 

U.S. Attorney Carpenito credited special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Charlie J. Patterson in Newark; special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark; officers of the Byram Police Department, under the direction of Chief Peter J. Zabita; the Roxbury Police Department, under the direction of Chief Marc Palanchi; the Sussex County Prosecutor’s Office, under the direction of Prosecutor Francis A. Koch; officers of the Morris County Sheriff’s Office, under the direction of Sheriff James M. Gannon; and officers of the Morris County Prosecutor’s Office, under the direction of Prosecutor Frederic M. Knapp, with the investigation leading to the charges.

The counts of possession of a destructive device and possession of firearms by a previously convicted felon each carry a maximum penalty of 10 years in prison and a $250,000 fine. Sentencing is scheduled for Nov. 25, 2019.

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

NEWARK, N.J. – Four Paterson, New Jersey, men are charged for their roles in a scheme to break into U.S. Postal Service (USPS) mail collection boxes throughout northern New Jersey and steal the mail – particularly, checks – inside, U.S. Attorney Craig Carpenito announced today.

Aneuris Henriquez-Lopez, 24, Eleazer Peralta, 19, Fernando Santiago, 26, and Rikinson Rodriguez-Sanchez, 25, are each charged by complaint with one count of conspiracy to commit bank fraud. Henriquez-Lopez, Peralta and Santiago were arrested today and are scheduled to make their initial appearances this afternoon before U.S. Magistrate Court Judge James B. Clark III in Newark federal court. Rodriguez-Sanchez remains at large.

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

The defendants allegedly stole checks from USPS mail collection boxes in Passaic, Bergen, Morris, Essex, and Middlesex counties, and elsewhere, and fraudulently deposited those checks into various bank accounts, often within a day of being stolen. Some of the mail collection boxes were broken into with the use of pry bars, usually late at night. 

The conspiracy to commit bank fraud charge carries a maximum penalty of 30 years in prison and a $1 million fine.

U.S. Attorney Carpenito credited postal inspectors of the U.S. Postal Inspection Service, Newark Division, under the direction of Inspector-in-Charge James Buthorn, with the investigation leading to today’s charges. He also thanked the U.S. Secret Service and U.S. Marshals Service for their assistance with the investigation. 

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

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

NEWARK, N.J. – A Sussex County, New Jersey, has been charged with possessing an arsenal of weapons and ammunition, along with white supremacist and racist propaganda, U.S. Attorney Craig Carpenito announced today.

Joseph Rubino, 57, of Lafayette Township, New Jersey, is charged by complaint with one count each of possession with intent to distribute methamphetamine, possession of firearms in furtherance of a drug-trafficking crime, and possession of firearms by a convicted felon. Rubino will appear in Newark federal court at a date to be determined.

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

On July 24, 2019, following a motor vehicle accident, officers with the N.J. State Police observed numerous weapons and ammunition inside Rubino’s crashed vehicle. After executing court-authorized warrants to search Rubino’s vehicle and residence, law enforcement recovered from Rubino’s car and house the following:

• Intratec Arms Model TEC-DC9 semi-automatic assault handgun;
• Cobray Arms Mac-11 9mm semi-automatic assault pistol with a high-capacity magazine;
• Keltec CMR30 .22 caliber semi-automatic rifle loaded with 16 .22 caliber hollow-point cartridges;
• High Standard Derringer .22 caliber double-barrel handgun;
• Polymer 80 9mm semi-automatic handgun;
• Ithaca M-66 20-gauge single shotgun;
• Remington Model 700 .223 caliber bold action rifle with scope;
• Thompson Center .50 caliber muzzle-loading rifle with scope;
• Remington Model 870 Wingmaster 12-gauge pump shotgun;
• New England Firearms 20-gauge single shot shotgun;
• Remington Model 760 .300 Savage pump rifle;
• Glenfield Mod 60 .22 LR caliber semi-automatic rifle;
• Two sawed-off double-barrel shotgun barrels;
• Several high-capacity magazines;
• Numerous silencers;
• An assault rifle scope;
• A grenade launcher;
• A ballistics vest; and
• Numerous additional ammunition of various calibers.

 

In addition to the firearms and ammunition, law enforcement recovered approximately 70 grams of methamphetamine, seven kilograms of marijuana, and 200 marijuana vape cartridges from Rubino’s house.

Rubino was also in possession of a box containing clothing and bumper stickers with “SS Bolts,” which are common white supremacist and neo-Nazi symbols, as well as a document entitled “N****r Owner’s Manual,” containing racist material and purporting to be an instruction manual for owning a slave.

U.S. Attorney Carpenito credited members of the N.J. State Police, under the direction of Col. Patrick J. Callahan; and special agents of the ATF, under the direction of Special Agent in Charge Charlie J. Patterson in Newark with the investigation leading to the charges. He also thanked the Warren County Prosecutor’s Office, under the direction of Prosecutor Richard T. Burke, and the Sussex County Prosecutor’s Office, under the direction of Prosecutor Francis A. Koch for their assistance.

The count of possession of methamphetamine with intent to distribute is punishable by a maximum of 40 years in prison; the count of possession of a firearm by a convicted felon is punishable by a maximum of 10 years in prison; and the count of possession of a firearm in furtherance of a drug-trafficking crime is punishable by a maximum of life in prison.

The case is being prosecuted by Assistant U.S. Attorney Vera Varshavsky of the Organized Crime and Gangs Unit in Newark.

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

CAMDEN, N.J. – An Ocean County, New Jersey, woman was sentenced today to 24 months in prison for defrauding New Jersey state health benefits programs and other insurers by submitting fraudulent claims for medically unnecessary prescriptions, U.S. Attorney Craig Carpenito announced.

Kristie Masucci, 37, of Cedar Run, New Jersey, previously pleaded guilty before U.S. District Judge Robert B. Kugler to an information charging her with conspiracy to commit health care fraud. Judge Kugler imposed the sentence today in Camden federal court.

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

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

From January 2015 through February 2016, Masucci served as a recruiter in the conspiracy and persuaded individuals in New Jersey to obtain very expensive and medically unnecessary compounded medications from an out-of-state pharmacy, identified in the information as the “Compounding Pharmacy.” The conspirators learned that certain compound medication prescriptions – including pain, scar, antifungal, and libido creams, as well as vitamin combinations – were reimbursed for thousands of dollars for a one-month supply.

The conspirators also learned that some New Jersey state and local government and education employees, including teachers, firefighters, municipal police officers, and state troopers, had insurance coverage for these particular compound medications. An entity referred to in the information as the “Pharmacy Benefits Administrator” provided pharmacy benefit management services for the State Health Benefits Program, which covers qualified state and local government employees, retirees, and eligible dependents, and the School Employees’ Health Benefits Program, which covers qualified local education employees, retirees, and eligible dependents. The Pharmacy Benefits Administrator would pay prescription drug claims and then bill the State of New Jersey for the amounts paid.

Masucci and conspirators working under her recruited public employees and other individuals covered by the Pharmacy Benefits Administrator to fraudulently obtain compounded medications from the Compounding Pharmacy without any evaluation by a medical professional that they were medically necessary. In return, the pharmacy paid one of Masucci’s conspirators a percentage of each prescription filled and paid by the Pharmacy Benefits Administrator, which was then distributed to Masucci and other members of the conspiracy.

Masucci’s conspirators would then cause the prescriptions to be signed by a doctor who never evaluated whether the patients had a medical necessity for the compounded medication. The prescriptions were then faxed to the Compounding Pharmacy, which filled the prescriptions and billed the Pharmacy Benefits Administrator.

According to the information, the Pharmacy Benefits Administrator paid the Compounding Pharmacy more than $50 million for compounded medications mailed to individuals in New Jersey, including $1.8 million for prescriptions submitted by Masucci and her cohorts. Masucci received $388,608 for her role in the scheme.

In addition to the prison term, Judge Kugler sentenced Masucci to three years of supervised release and ordered her to pay $1.8 million in restitution.

U.S. Attorney Carpenito credited agents of the FBI’s Atlantic City Resident Agency, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark; IRS – Criminal Investigation, under the direction of Special Agent in Charge John R. Tafur in Newark; and the U.S. Department of Labor, Office of Inspector General, New York Region, under the direction of Special Agent in Charge Michael C. Mikulka, with the investigation leading to today’s sentencing. He also thanked the Division of Pensions and Financial Transactions in the State Attorney General’s Office, under the direction of Attorney General Gurbir S. Grewal and Division Chief Eileen Schlindwein Den Bleyker, for its assistance in the investigation.

The government is represented by Assistant U.S. Attorneys R. David Walk Jr. and Christina Hud of the U.S. Attorney’s Office in Camden.

Defense counsel: Amy Luria Esq., Roseland, New Jersey

TRENTON, N.J. – An Atlantic County, New Jersey, man was sentenced today to 96 months in prison for receiving images of child sexual abuse, U.S. Attorney Craig Carpenito announced.

Matthew Wolny, 41, of Egg Harbor Township, New Jersey, previously pleaded guilty before U.S. District Judge Brian R. Martinotti to an information charging him with one count of receipt of child pornography. Judge Martinotti imposed the sentence today in Trenton federal court.

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

In September 2013, Wolny, who was then living in Jackson, New Jersey, used a peer-to-peer file sharing software, which he had installed on his computer, to download video files containing images of child sexual abuse from the internet to his computer hard drive.

In addition to the prison term, Judge Martinotti sentenced Wolny to 10 years of supervised release.

U.S. Attorney Carpenito credited special agents of Homeland Security Investigations (HSI), under the direction of Brian Michael, and the Ocean County Prosecutor’s Office, under the direction of Prosecutor Bradley D. Billhimer, with the investigation leading to today’s sentencing.

The government is represented by Assistant U.S. Attorney Molly Lorber of the U.S. Attorney’s Office’s Camden Office.

Defense counsel: Jack Wenik Esq., Newark

NEWARK N.J. – Two Essex County, New Jersey, men were sentenced today to federal prison terms following their convictions on multiple drug and weapons offenses, U.S. Attorney Craig Carpenito announced.

Jesse Tullies, 54, of Hillside, New Jersey, was sentenced to 235 months in prison and Eugene Williams, 34, of Newark, was sentenced to 190 months in prison. Both were convicted on one count each of conspiracy to distribute heroin, distribution of heroin, distribution of cocaine base, being a felon in possession of a weapon, and use and carrying of a firearm in furtherance of a drug trafficking crime. The defendants were convicted following a three-day trial in June 2018 before U.S. District Judge Kevin McNulty, who imposed the sentences today in Newark federal court.

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

On Oct. 4, 2017, Essex County Sheriff’s Officers witnessed Tullies and Williams involved in what they believed were a number of illegal drug sales in the area of Clinton Place and Weequahic Avenue in Newark. Tullies and Williams were subsequently arrested, and during a search, officers recovered $1,275 in cash from Tullies and $360 from Williams.

During a search of the area where officers had seen Tullies and Williams retrieve suspected narcotics from under the rear bumper of a car, officers also recovered the following items:

• One plastic bag containing 198 glassine envelopes containing suspected heroin, including four glassine envelopes stamped “Black Jack”;

• One plastic bag containing 22 smaller plastic bags and ten plastic jugs containing cocaine base and cocaine;

• A 9mm Beretta semiautomatic handgun loaded with two rounds of 9mm ammunition;

• A 9mm Taurus Millennium PT111 G2 semiautomatic handgun loaded with eight rounds of Sig Sauer 9mm ammunition and four rounds of Winchester 9mm ammunition; and

• A 9mm FEG PA-63 Makarov semiautomatic handgun loaded with two rounds of JSC Barnaul Machine Tool Plant 9mm hollow point ammunition.

In addition to the prison terms, Judge McNulty sentenced Tullies and Williams each to three years of years of supervised release.

U.S. Attorney Carpenito credited special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Charlie J. Patterson in Newark; special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark; and officers of the Essex County Sheriff’s Office, under the direction of Sheriff Armando B. Fontoura, with the investigation leading to today’s sentencings.

The government is represented by Assistant U.S. Attorney Elaine Lou of the U.S. Attorney’s Office in Newark and Assistant U.S. Attorney Francisco Navarro of the U.S. Attorney’s Office, Eastern District of New York.

Defense counsel: Tullies: James R. Murphy Esq., Princeton, New Jersey
Williams: Pasquale F. Giannetta Esq., Newark

NEWARK – The United States has reached agreements with the election boards for Ocean and Union counties to ensure people with disabilities can physically access polling locations, U.S. Attorney Craig Carpenito announced today.

From 2015 to 2019, the federal government surveyed more than 100 polling places through four elections in Ocean and Union counties. The surveys found many of those polling places had physical barriers to access, potentially impeding voters who have mobility or vision impairments. The Boards of Elections in those two counties expressed their commitment to making all polling locations accessible to voters with disabilities, as required under Title II of the Americans with Disabilities Act (ADA).

Under the memoranda of agreement, the county election boards will employ temporary measures, such as portable ramps and signage, where appropriate to make polling places accessible. They will also train their poll workers on the requirements of the ADA and how to use temporary measures to ensure each polling place is accessible. The county boards will also survey polling locations for accessibility and maintain the accessibility of each polling place it uses on Election Day. When selecting future polling places, the agreements also require the county boards to select locations that will be accessible during elections. The Department of Justice will monitor the county boards’ compliance with the agreements and provide the counties with technical assistance.

The Ocean and Union county election boards fully cooperated with the U.S. Attorney’s Office to voluntarily reach the agreements, and agreed to take remedial steps soon after learning of these findings to improve physical accessibility at polling places.

“The right of every voter with a disability to vote in person at his or her local polling place is an integral part of our democratic system of government that must be not be diminished or restricted by barriers to access,” U.S. Attorney Carpenito said. “These agreements protect this fundamental right by ensuring voting access to polling places to individuals with mobility disabilities.”

These agreements are part of the Justice Department’s ADA Voting Initiative, which focuses on protecting the voting rights of individuals with disabilities. A hallmark of the ADA Voting Initiative is its collaboration with jurisdictions to increase accessibility at polling places. The Department of Justice has surveyed more than 1,600 polling places and increased polling place accessibility in more than 35 jurisdictions.

The United States is represented by Assistant U.S. Attorney Michael E. Campion, Chief of the U.S. Attorney’s Civil Rights Unit, Assistant U.S. Attorney Kelly Horan Florio, of the U.S. Attorney’s Civil Rights Unit, and Assistant U.S. Attorneys Elizabeth A. Pascal and Kristin Vassallo, Deputy Chiefs of the U.S. Attorney’s Civil Division.

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 or call the U.S. Attorney’s Office’s Civil Rights Complaint Hotline at (855) 281-3339. Additional information about the ADA can be found at www.ada.gov, or by calling the Department of Justice’s toll-free information line at (800) 514-0301 and (800) 514-0383 (TDD).

NEWARK, N.J. – A Middlesex County, New Jersey, man was indicted today by a federal grand jury for running a multi-year investment fraud scheme that caused millions of dollars of losses, Attorney for the United States Rachael A. Honig announced.

Sandy John Masselli, 57, of Old Bridge, New Jersey, is charged in a superseding indictment with one count of bank fraud, two counts of wire fraud, two counts of securities fraud and one count of aggravated identity theft. Masselli was originally indicted on two counts of bank fraud and three counts of wire fraud on September 19, 2018. 

According to the documents filed in this case:

From September 2011 through October 2017, Masselli solicited millions of dollars in investments from retail investors by fraudulently touting the prospect of his online gaming company, Carlyle Entertainment Ltd., formerly Carlyle Gaming & Entertainment Ltd. (Carlyle), to conduct a lucrative initial public offering (IPO) of its stock on either the NASDAQ or the New York Stock Exchange (NYSE). Masselli induced investors to purchase shares of Carlyle stock by promising them steeply discounted prices in advance of the purported IPO and assuring them that the stock price would increase significantly after the IPO. Masselli further represented that the IPO would occur within weeks of the investors’ stock purchases. 

However, as Masselli knew, Carlyle was not prepared to conduct an IPO, given that neither Masselli nor anyone else on behalf of Carlyle ever filed an application with the NASDAQ or the NYSE to list Carlyle stock on either exchange, or filed with the Securities and Exchange Commission (SEC) a registration statement to list Carlyle shares on a national exchange. Masselli further misrepresented to the investors how he would use their investments, for example telling them that he would allocate investment funds toward improving Carlyle’s online platform and paying legal fees in connection with preparing Carlyle for a looming IPO. Contrary to these claims, however, Masselli misappropriated these funds to pay for his and his family’s own personal expenses.

Within days or weeks of receiving investor funds, Masselli deposited the monies into bank accounts he controlled, many of which were opened under names of fictitious corporate entities in an effort to conceal the source of the funds. Masselli typically used the funds to pay for personal expenses, including paying credit card balances and financing or leasing luxury automobiles.

Masselli also opened a credit card account under the assumed identity of another person, without that person’s authorization, made purchases with the account until he had almost reached or exceeded the credit limit, and then purported to send payments from a bank account that he knew did not have sufficient funds to cover the purchases. Before the fraudulent payments were rejected for insufficient funds, the credit card company temporarily credited the fraudulently opened account based on those payments, providing Masselli access to additional credit and allowing him to continue to make purchases. Masselli ultimately failed to pay the balance and the credit card company sustained a loss.

The bank fraud counts each carry a maximum potential penalty of 30 years in prison and a $1 million fine. The wire fraud counts each carry a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gain or loss from the offense. The securities fraud counts each carry a maximum potential penalty of 20 years in prison and a $5 million fine. The aggravated identity theft count carries a mandatory sentence of two years in prison that must run consecutively to the sentence imposed for any other count. 

Attorney for the United States Honig credited special agents of the FBI, under the direction of Special Agent in Gregory W. Ehrie in Newark, with the investigation leading to today’s superseding indictment. 

The government is represented by Assistant U.S. Attorney Eric A. Boden of U.S. Attorney’s Office in Trenton.

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

CAMDEN, N.J. – Two top-level managers in a drug-trafficking organization today admitted their roles in distributing significant amounts of illegal drugs in Camden, U.S. Attorney Craig Carpenito announced.

Ronnie Lopez, 45, of Pennsauken, New Jersey, and Nelson Salcedo, 41, of Camden, pleaded guilty before U.S. District Judge Renee Marie Bumb in Camden federal court to their roles in managing a drug trafficking conspiracy that was based on the 500 block of Pine Street in Camden. Lopez pleaded guilty to an information charging him with one count of conspiracy to distribute heroin, crack cocaine, cocaine and fentanyl. Salcedo pleaded guilty to an information charging him with one count of conspiracy to distribute heroin, crack cocaine and cocaine. Lopez and Salcedo are the first of 19 defendants who were charged in this case in November 2018 to plead guilty. Charges against the other defendants remain pending.

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

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

Lopez occupied the highest position in the conspiracy, and obtained bulk quantities of illegal drugs for ultimate sale to customers. The organization also had other top-level managers and distributors, such as Salcedo, who obtained drugs from Lopez and other suppliers and prepared and packaged the drugs for distribution downstream. At their plea hearings, both Lopez and Salcedo admitted to distributing thousands of kilograms of illegal drugs in Camden.

The counts to which Lopez and Salcedo pleaded guilty carry a mandatory penalty of 10 years in prison, a maximum potential penalty of life in prison, and a $10 million fine.

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 Harpster; the Camden County Police Department, under the direction of Chief J. Scott Thomson; the Camden County Prosecutor’s Office, under the direction of Prosecutor Mary Eva Colalillo; the Camden County Sherriff’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.

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.

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

Defense counsel: Lopez: Stanley O. King Esq., Woodbury, New Jersey
Salcedo: Rocco C. Cipparone Jr. Esq., Haddon Heights, New Jersey

CAMDEN, N.J. – Three men were arrested today in connection with a scheme in which they allegedly stole hundreds of thousands of dollars in government funds using fraudulently procured electronic benefits transfer (EBT) cards, U.S. Attorney Craig Carpenito announced.

Luciano Estevez, 50, and Jose Garcia, 52, both of Camden; and Juan Melo, 56, of Woodlynne, New Jersey, are charged by separate complaints with one count each of conspiracy to defraud the United States and one count each of defrauding the U.S. Department of Agriculture’s (USDA) Supplemental Nutrition Assistance Program (SNAP). They appeared this afternoon before U.S. Magistrate Judge Ann Marie Donio in Camden federal court. A fourth defendant, Octavio Rodriguez, 50, of Pennsauken, New Jersey, is charged with the same crimes and remains at large.

SNAP, formerly known as the food stamp program, is a program administered by the USDA to assist low-income individuals and families with the purchase of groceries and food items. SNAP recipients receive EBT cards, similar to commercial debit cards, to make food purchases. Retailers authorized to accept SNAP benefits have EBT terminals to process the food purchases. Food purchases are made by swiping the EBT card at the terminal, and having customers enter a Personal Identification Number (PIN). The EBT terminal verifies the PIN, determines whether the customer’s account balance is sufficient to cover the proposed transaction, and informs the retailer whether the transaction should be authorized or denied. The amount of the purchase is deducted electronically from the SNAP benefits reserved for the customer and the purchase amount is credited to the retailer’s designated bank account.

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

Estevez, Rodriguez, Garcia, Melo, and others allegedly targeted low-income individuals who possessed or had access to EBT cards, and unlawfully purchased the cards from these individuals in exchange for cash and controlled substances. Two confidential sources working with law enforcement engaged in 43 controlled transactions involving EBT cards totaling more than $40,500, which they exchanged for cash and controlled substances, including prescription opioids and narcotics.

The defendants used the unlawfully procured EBT cards to purchase bulk goods and food items from large national superstores. These goods and food items were then resold in small convenience and grocery stores owned or affiliated with the defendants or their associates, resulting in a profit for the defendants. Hundreds of EBT cards fraudulently procured by the defendants were used at these superstores, resulting in the misappropriation of approximately $150,000 in government funds.

Estevez also unlawfully procured an EBT terminal registered to a superstore in Philadelphia, Pennsylvania, to use at his small grocery store in Camden, which was not registered as a lawful SNAP merchant in the USDA program. Estevez was able to unlawfully receive through this terminal approximately $110,000 in SNAP funds. 

The conspiracy count with which all four defendants are charged carries a maximum penalty of five years in prison and a fine of $250,000, or twice the gross gain or loss from the offense. Estevez, Rodriguez, and Garcia each are each charged with a SNAP fraud offense in which the value of the trafficked benefits exceeded $5,000, which carries a maximum penalty of 20 years in prison and a fine of $250,000, or twice the gross gain or loss from the offense. Melo is charged with a SNAP fraud offense in which the value of the trafficked benefits is less than $5,000, but greater than $100, which carries a maximum penalty of five years in prison and a fine of $250,000, or twice the gross gain or loss from the offense.

U.S. Attorney Carpenito credited special agents of the FBI Philadelphia Field Office, South Jersey Resident Agency, both under the direction of Special Agent in Charge Michael Harpster in Philadelphia; the U.S. Department of Agriculture-Office of Inspector General, Philadelphia, under the direction of Special Agent in Charge Bethanne M. Dinkins; the Camden County Police Department, under the direction of Chief J. Scott Thomson; the U.S. Department of Health and Human Services-Office of Inspector General, under the direction of Special Agent in Charge Scott J. Lampert; the Camden County Prosecutor’s Office, under the direction of Prosecutor Mary Eva Colalillo; the Camden County Sheriff’s Department, the N.J. State Police; the N.J. Department of Treasury and the National Guard, with the investigation leading to the arrests.

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

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

NEWARK, N.J. – A Morris County, New Jersey, man today admitted participating in a conspiracy to bill health insurance companies for medically unnecessary compounded prescriptions, U.S. Attorney Craig Carpenito announced.

Peter Frazzano, 46, of Randoph, New Jersey, pleaded guilty before U.S. District Judge John Michael Vazquez in Newark federal court to an information charging him with conspiracy to commit health care fraud.

According to documents filed in this case and statements made in court: Frazzano admitted that from November 2014 through March 2016 he participated in a conspiracy to defraud health insurance plans, including the N.J. State Health Benefits plan, by knowingly causing the billing of fraudulent claims for medically unnecessary prescription compounded medications, such as scar creams, pain creams, and metabolic supplements. To ensure that a physician prescribed compounded medications regardless of medical necessity, Frazzano and a conspirator recruited a doctor to sign prescriptions ordering compounded medications without ever examining or interacting with any of the individuals who were to receive the medications.

The count to which Frazzano pleaded guilty is punishable by a maximum of 10 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. As part of his plea agreement, Frazzano must forfeit $270,751 in criminal proceeds and pay restitution of $2,727,292. Sentencing is scheduled for Nov. 19, 2019.

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 Vikas Khanna, Deputy Chief of the Criminal Division of the U.S.Attorney’s Office in Newark.

Defense counsel: Joseph Shumofsky Esq., Newark

NEWARK, N.J. – A member of the New Jersey Grape Street Crips appeared in court today on charges that include two attempted murders charged as part of a RICO conspiracy, as well as narcotics trafficking, U.S. Attorney Craig Carpenito announced.

Sean Hills, a/k/a “Half A Brain,” a/k/a “Half,” a/k/a “Rydaman,” 28, of Newark, was charged in a two-count indictment with Racketeer Influenced and Corrupt Organizations (RICO) conspiracy and distribution of cocaine. Hills made his initial court appearance and was arraigned today before U.S. Magistrate Judge Leda Dunn Wettre in Newark federal court.

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

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

Hills is allegedly a long-time member of the New Jersey Grape Street Crips who has the gang’s senior hierarchy tattooed on his face. On Dec. 15, 2012, Hills repeatedly shot Victim-1 near the area of South 14th Street and 14th Avenue, an area that Hills and other gang-members were trying to take over as part of their drug-trafficking territory. On Feb. 1, 2013, Hills shot Victim-2 numerous times. Both victims survived the attacks. Hills is additionally charged with separate instances of possession with intent to distribute of cocaine.

Hills faces a maximum sentence of up to 20 years on each count for the RICO conspiracy and the narcotics charges, and a fine of $250,000 on the RICO conspiracy charge and $1 million on the drug charge.

U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark. He also thanked the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Theodore N. Stephens II, police officers and detectives of the Newark Police Department, under the direction of Public Safety Director Anthony F. Ambrose, and the Essex County Sherriff’s Office, under the direction of Armando B. Fontoura, for their long and close collaboration on the case.

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

This case was conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF) and the FBI’s Safe Streets Task Force, a partnership between federal, state and local law enforcement agencies. 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 charges and allegations in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.

Defense Counsel: Olubukola Adetula Esq., East Orange, New Jersey

NEWARK, N.J. – A Virginia-based military contractor doing business in New Jersey will pay $4.02 million to resolve allegations that it improperly billed the United States for extra payments to employees, U.S. Attorney Craig Carpenito, District of New Jersey, announced.

Mission1st Group Inc. (Mission First), a Virginia Corporation which provided program management, systems engineering, and information technology and communications, improperly billed the United States for extra payments to employees, known as uplifts, that were not actually paid to its employees.

Employees of civilian contractors in support of U.S. military forces stationed in Iraq and Afghanistan are entitled to uplifts to their salaries in the form of danger pay and hazardous duty pay. The settlement resolves allegations that Mission First billed uplifts that it was supposed to pay to its employees, but did not actually pay the employees. The United States alleged that Mission First also billed the United States for Federal Insurance Contributions Act (FICA) taxes on the uplift billings, which were in most instances in excess of the statutory cap for the affected employees, and then improperly retained those excess tax payments.

U.S. Attorney Carpenito credited Special Agent Peter DeRado of the Defense Criminal Investigative Service; Special Agents William Schelpf and Kim Canady of the Major Procurement Fraud Unit of the U.S. Army’s Criminal Investigation Division; David Gotlib, an auditor with the Department of Defense Contract Audit Agency; and Steven G. Foster, a contracting officer with the Army Contracting Command, Aberdeen Proving Ground, led by Kenyata L. Wesley Sr., Executive Director, Senior Executive Service, with the investigation.

The government is represented by Senior Trial Counsel Anthony J. Labruna and Assistant U.S. Attorney Mark C. Orlowski of the U.S. Attorney’s Civil Division in Newark, and Trial Attorney Art J. Coulter of the Civil Frauds Section of the Justice Department in Washington, D.C.

Defense counsel: Justin A. Chiarodo Esq., Washington, D.C.

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

Malcolm Salamanca, 29, of Ridgefield, New Jersey, pleaded guilty before U.S. District Judge Esther Salas in Newark federal court to an information charging him with one count of distribution of child pornography and one count of possession of child pornography.

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

Salamanca used a peer-to-peer file-sharing program to download and share videos and images of child sexual abuse. In November 2016, undercover law enforcement agents downloaded some of those images and videos from Salamanca’s computer. After executing a search warrant at Salamanca’s home in November 2017, agents located more videos of child sexual abuse on Salamanca’s computers.

The distribution of child pornography charge to which Salamanca pleaded guilty carries a mandatory minimum sentence of five years in prison, a maximum potential penalty of 20 years in prison, and a $250,000 fine. The possession of child pornography charge carries a maximum potential penalty of 20 years in prison and a $250,000 fine. Salamanca will be required to register as a sex offender. Sentencing is scheduled for Dec. 2, 2019.

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 Michael in Newark, with the investigation leading to today’s guilty plea. He also thanked the Bergen County Prosecutor’s Office, the Ridgefield Police Department and the U.S. Postal Inspection Service for their assistance with the investigation.

The government is represented by Assistant U.S. Attorney Melissa Wangenheim of the Cyber Crimes Unit in Newark.

Defense counsel: Paul Brickfield Esq., River Edge, New Jersey

Jean Noriega, 48, Enna Gonzalez, 53, and John Oyola, 32, of Paterson, New Jersey, were charged in a criminal complaint with one count of conspiracy to commit sex trafficking. The charges were announced by Assistant Attorney General Eric Dreiband for the Justice Department’s Civil Rights Division and U.S. Attorney Craig Carpenito for the District of New Jersey.

According to the allegations in the complaint, the defendants conspired to coerce multiple women to engage in commercial sex in New Jersey and New York. Specially, Noriega used violence, threats of violence, threats of drug withdrawal, and other means, to compel the victims to engage in commercial sex for his profit, including after his incarceration in New York in 2017. Oyola and Gonzalez helped Noriega control the victims through various means, collect the proceeds, and otherwise carry out his sex trafficking activities while Noriega was incarcerated.  

Noriega, who is incarcerated in New York on a previous conviction, made his initial appearance today before U.S. Magistrate Judge Thérèse Wiley Dancks in Syracuse federal court in the Northern District of New York. Oyola made his initial appearance Aug. 7, 2019, before U.S. Magistrate Judge Steven C. Mannion in Newark federal court. Gonzalez appeared before Judge Mannion on Aug. 5.

The charges in the complaint are merely allegations, and the defendants are presumed to be innocent unless and until convicted. If convicted of conspiracy to commit sex trafficking, the defendants face a maximum sentence of life imprisonment, a $250,000 fine, and mandatory restitution. 

This case is being investigated by the FBI and the Passaic County Prosecutor’s Office’s Human Trafficking Unit. It is being prosecuted by Assistant U.S. Attorney Sophie Reiter for the District of New Jersey and Trial Attorney Kate Hill for the Civil Rights Division’s Human Trafficking Prosecution Unit.

NEWARK, N.J. – Three New Jersey residents have been charged by complaint for their roles in a sex trafficking conspiracy, U.S. Attorney Craig Carpenito for the District of New Jersey and Assistant Attorney General Eric Dreiband of the Justice Department’s Civil Rights Division announced today.

Jean Noriega, 48, Enna Gonzalez, 53, and John Oyola, 32, all of Paterson, New Jersey, were each charged in a criminal complaint with one count of conspiracy to commit sex trafficking.

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

The three defendants conspired to coerce multiple women to engage in commercial sex in New Jersey and New York. Noriega used violence, threats of violence, threats of drug withdrawal, and other means, to compel the victims to engage in commercial sex for his profit, including after his incarceration in New York in 2017. Oyola and Gonzalez helped Noriega control the victims through various means, collect the proceeds, and otherwise carry out his sex trafficking activities while Noriega was incarcerated.  

Noriega, who is incarcerated in New York on a previous conviction, made his initial appearance today before U.S. Magistrate Judge Thérèse Wiley Dancks in Syracuse federal court in the Northern District of New York. Oyola made his initial appearance Aug. 7, 2019, before U.S. Magistrate Judge Steven C. Mannion in Newark federal court. Gonzalez appeared before Judge Mannion on Aug. 5, 2019.

The count of conspiracy to commit sex trafficking carries a maximum penalty of life in prison, a $250,000 fine, and mandatory restitution. 

U.S. Attorney Carpenito credited special agents of the FBI’s Newark Child Exploitation Human Trafficking Task Force, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, the Passaic County Prosecutor’s Office’s Human Trafficking Unit, under the direction of Prosecutor Camelia M. Valdes, and the New York State Department of Corrections and Community Supervision Office of Special Investigations, with the investigation leading to the charges.

The government is represented by Assistant U.S. Attorney Sophie Reiter of the U.S. Attorney’s Office for the District of New Jersey and Trial Attorney Kate Hill for the Civil Rights Division’s Human Trafficking Prosecution Unit.

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

 

CAMDEN, N.J. – A former secretary-treasurer of a U.S. Postal Workers Union today admitted embezzling $34,500 of union funds, U.S. Attorney Craig Carpenito announced.

Robert Peter, 58, of Sicklerville, New Jersey, pleaded guilty before U.S. District Judge Noel Hillman in Camden federal court to an information charging him with one count of embezzling funds from the operating account of the Local 526 Postal Workers Union. Local 526 represents approximately 900 members who work in the clerk, maintenance, and motor vehicle crafts for the U.S. Postal Service in southern New Jersey.

Between May 1, 2018, and June 13, 2018, Peter issued eight checks to himself, totaling $22,500, by fraudulently utilizing the union president’s “signature stamp” to authorize the disbursement of members’ money. He also withdrew, without proper authorization, $12,000 in cash from the union’s account through ATM machines in Atlantic City.

The count of embezzlement carries a maximum potential penalty of five years in prison and a $250,000 fine, or twice the gross amount of gain to the defendant or loss to the victim, whichever is greater. Sentencing is scheduled for Nov. 26, 2019.

U.S. Attorney Craig Carpenito credited the special agents of the Office of Labor Management Standards from the Philadelphia-Pittsburgh District Office, under the direction of District Director Kevin Kennedy, with the investigation leading to today’s guilty plea.

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

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

NEWARK, N.J. – A Bergen County, New Jersey, man today admitted that he embezzled funds from an employee benefit plan, U.S. Attorney Craig Carpenito announced.

Howard Preschel, 63, of Teaneck, New Jersey, pleaded guilty before U.S. District Court Judge Susan D. Wigenton in Newark federal court to one count of an indictment charging him with embezzling funds from the CMG Vending Inc. Pension Trust Fund.       

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

Preschel served as a trustee for the CMG Vending Inc. Pension Trust Fund. CMG Vending operated, leased, and rented vending machines throughout New Jersey and New York.  Preschel was, by law, a fiduciary, and therefore required to act solely in the interest of the participants and beneficiaries.

Between November 2010 and April 2018, Preschel embezzled $368,783 from the trust fund by engaging in 52 separate illegal withdrawals or transfers from various accounts. As a result of these illegal withdrawals and transfers, the trust fund lost an additional $93,267 in interest. As part of the plea agreement, Preschel agreed to make restitution to the trust fund in the amount of $462,050. Preschel also agreed to a debarment which prohibits him from acting as a fiduciary on behalf of any employee benefit plan for a period of 13 years.

The embezzlement count to which Preschel pleaded guilty carries a maximum potential sentence of five years in prison and a fine of $250,000 or twice the gross amount of gain to the defendant or loss to the victim, whichever is greater. Sentencing is scheduled for Nov. 13, 2019.   

U.S. Attorney Carpenito credited special agents of the U.S. Department of Labor, Office of Inspector General, under the direction of Special Agent in Charge Michael Mikulka in Mountainside, and the U.S. Department of Labor, Employee Benefits Security Administration, under the direction of Acting Regional Director Thomas Licetti of the New York Regional Office, with the investigation leading to today’s guilty plea. 

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

NEWARK, N.J. – Two West Orange, New Jersey, men are charged with federal narcotics offenses after an investigation revealed a large quantity of methamphetamine and other narcotics in their residence, U.S. Attorney Craig Carpenito announced today.

Brian Cheda-Hackembruch, 23, is charged with conspiracy to distribute over 500 grams of methamphetamine and maintaining a drug-involved premises. Eduardo Martinez, 39, is charged with possession of methamphetamine. Both defendants appeared this afternoon before U.S. Magistrate Judge Steven C. Mannion in Newark federal court.

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

As part of an investigation beginning in May 2019, law enforcement officers observed multiple individuals coming and going from Cheda-Hackembruch’s residence, in a manner consistent with narcotics activity. A search of the residence on July 29, 2019, discovered 4,322.8 grams of methamphetamine, 74 grams of marijuana, 96 fluid ounces of Gamma Butyrolactone (GBL) and bank statements suggesting that Cheda-Hackembruch’s bank account contained over $500,000. Law enforcement searched Martinez’s room and discovered an additional 38 grams of methamphetamine. Officers also located packaging materials, scales, and items consistent with methamphetamine processing.

The count of conspiracy to distribute methamphetamine carries a maximum penalty of life in prison and a fine of up to $10 million. The count of maintaining a drug-involved premises count carries a maximum penalty of 20 years in prison, a $500,000 fine, and a civil penalty up to $250,000. The count of possession of methamphetamine count carries a maximum penalty of one year in prison and a $100,000 fine.

U.S. Attorney Carpenito credited officers of the Essex County Sheriff’s Office, under the direction of Sheriff Armando Fontoura, with the investigation leading to the charges.

The government is represented by Special Assistant U.S. Attorney Shawn Barnes of the U.S. Attorney’s Office Narcotics/OCDETF 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:

Cheda-Hackembruch: Eric Mark Esq., Newark

Martinez: TBD                                                                       

CAMDEN, N.J. – A Philadelphia, Pennsylvania, man today admitted robbing a bank in Carneys Point, New Jersey, in July 2018 while brandishing a firearm, U.S. Attorney Craig Carpenito announced.

Antwaine Thomas, 40, of Philadelphia, pleaded guilty before U.S. District Judge Joseph H. Rodriguez in Camden federal court to an indictment charging him with armed bank robbery and brandishing a firearm during a bank robbery.

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

Thomas admitted that on July 30, 2018, he and a co-conspirator walked into the Fulton Bank in Carneys Point, and that he pointed a loaded handgun at four bank employees while demanding cash.  Thomas and the co-conspirator took $66,000 from the bank and fled.  Thomas was arrested several hours later, and he was captured on surveillance video in a nearby residential area, ditching the cash, gun, and his clothing.

The armed bank robbery charge carries a maximum potential penalty of 25 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense.  The brandishing a firearm charge carries a mandatory minimum sentence of seven years which must be served consecutively to any other sentence imposed.  Sentencing is scheduled for Nov. 12, 2019. 

U.S. Attorney Carpenito credited special agents of the FBI, Philadelphia Division, under the direction of Special Agent in Charge Michael Harpster; the Salem County Prosecutor’s Office, under the direction of Salem County Prosecutor John T. Lenahan; officers of the Carneys Point Police Department, under the direction of Chief of Police Gerald A. Krivda; and officers of the Penns Grove Police Department, under the direction of Chief John T. Stranahan, Sr., with the investigation leading to today’s guilty plea.

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

Defense Counsel: Robert C. Wolf, Esq., Westmont, New Jersey

NEWARK, N.J. – U.S. Attorney Craig Carpenito will join members of law enforcement, community leaders and residents on Tuesday, August 6th at West Side Park in Newark to celebrate the 36th annual National Night Out crime and drug prevention event.

National Night Out is a community-building and crime prevention campaign that promotes collaborative law enforcement-community partnerships and neighborhood camaraderie. Thousands of communities nationwide will participate in neighborhood block parties, festivals, cookouts, safety demonstrations, seminars, and activities that heighten crime and drug prevention awareness and generate support for and participation in local anticrime efforts. Events such as these help to strengthen neighborhood spirit, police-community partnerships, and demonstrate a shared commitment for strong and safe communities. 

“National Night Out has rallied neighborhood residents, law enforcement and community leaders in the common goal of strengthening relationships to help prevent and deter crime in our local community,” U.S. Attorney Carpenito said. “I am proud to stand with my colleagues and my neighbors to support safer streets and work together to drive out crime.”

“The National Night Out celebration is a community/police awareness event, which is recognized throughout the United States and is held annually on the first Tuesday in August,” Newark Public Safety Director Anthony Ambrose said. “It is a day that the Police Division promotes community/police partnerships and neighborhood camaraderie.”

The Newark event runs from 2:00 p.m. to 8:00 p.m.

Other members of the U.S. Attorney’s Office, District of New Jersey, will be participating in events in Carteret, Jersey City, Mount Olive, Plainfield, Millburn, Piscataway, Union, Chatham, Nutley, Robbinsville and Secaucus. National Night Out organizers are expecting over 16,000 communities and 38 million people nationwide to take part in community events on Tuesday.

An Afghanistan citizen and United States Lawful Permanent Resident was indicted today for his role in a scheme to smuggle undocumented aliens from Afghanistan to the United States. 

Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Craig Carpenito of the District of New Jersey, Special Agent in Charge Anthony Salisbury of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) Miami, and Special Agent in Charge Brian Michael of HSI Newark, made the announcement.

Mujeeb Rahman Saify, 32, is an Afghanistan national who received a Special Immigrant Visa and became a U.S. Lawful Permanent Resident in 2009, after serving as an interpreter for the U.S. military in Afghanistan.  Since 2009, Saify has resided in New York and Newark.  Saify was charged in the District of New Jersey with conspiracy to smuggle aliens to the United States, encouraging and inducing alien smuggling, and attempting to bring aliens to the United States. 

According to the indictment, between July 2016 through January 2017, Saify conspired with members of an Afghanistan and Pakistan-based smuggling network to smuggle two Afghanistan nationals to the United States.  The Afghanistan nationals did not have prior authorization to enter the United States and one had been denied a U.S. visa.  The indictment alleges that Saify made contact with the aliens and arranged meetings with the co-conspirators to discuss smuggling arrangements.  Further, according to the indictment, Saify received payment, gave instructions to the aliens to facilitate the smuggling venture, and he used email and phone communications to facilitate and coordinate the criminal operation.  

The case is being investigated by HSI Miami, with valuable assistance provided by HSI Newark and HSI’s Human Smuggling Unit and Department of Homeland Security’s Homeland Identities, Targeting, and Exploitation Center (HITEC). The investigation is being conducted under the Extraterritorial Criminal Travel Strike Force (ECT) program, a joint partnership between the Justice Department’s Criminal Division and HSI.  The ECT program focuses on human smuggling networks that may present particular national security or public safety risks, or present grave humanitarian concerns.  ECT has dedicated investigative, intelligence and prosecutorial resources.  ECT coordinates and receives assistance from other U.S. government agencies and foreign law enforcement authorities.

This case is being prosecuted by Trial Attorney Jay Bauer of the Criminal Division’s Human Rights and Special Prosecutions Section and Senior Trial Counsel Margaret Ann Mahoney of the U.S. Attorney’s Office of the District of New Jersey. 

An indictment is merely a formal accusation.  Defendants are presumed innocent unless proven guilty in a court of law.

NEWARK, N.J. – An Afghani citizen and United States Lawful Permanent Resident was indicted today by a federal grand jury for his role in a scheme to smuggle undocumented aliens from Afghanistan to the United States. 

U.S. Attorney Craig Carpenito of the District of New Jersey, Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, Special Agent in Charge Anthony Salisbury of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) Miami, and Special Agent in Charge Brian Michael of HSI Newark, made the announcement.

Mujeeb Rahman Saify, 32, is an Afghanistan national who received a Special Immigrant Visa and became a U.S. Lawful Permanent Resident in 2009, after serving as an interpreter for the U.S. military in Afghanistan.  Since 2009, Saify has resided in New York and Newark. Saify was charged in the District of New Jersey with conspiracy to smuggle aliens to the United States, encouraging and inducing alien smuggling, and attempting to bring aliens to the United States.  If convicted, Saify faces a maximum sentence of 10 years in prison and a $250,000 fine, as well as forfeiture. 

According to the indictment, between July 2016 through February 2017, Saify conspired with members of an Afghanistan and Pakistan-based smuggling network to smuggle two Afghanistan nationals to the United States.  The Afghanistan nationals did not have prior authorization to enter the United States and one had been denied a U.S. visa.  The indictment alleges that Saify made contact with the aliens and arranged meetings with the co-conspirators to discuss smuggling arrangements.  Further, according to the indictment, Saify received payment, gave instructions to the aliens to facilitate the smuggling venture, and he used email and phone communications to facilitate and coordinate the criminal operation.  

The case is being investigated by HSI Miami, with valuable assistance provided by HSI Newark and HSI’s Human Smuggling Unit and the Department of Homeland Security’s Homeland Identities, Targeting, and Exploitation Center (HITEC). The investigation is being conducted under the Extraterritorial Criminal Travel Strike Force (ECT) program, a joint partnership between the Justice Department’s Criminal Division and HSI.  The ECT program focuses on human smuggling networks that may present particular national security or public safety risks, or present grave humanitarian concerns.  ECT has dedicated investigative, intelligence and prosecutorial resources.  ECT coordinates and receives assistance from other U.S. government agencies and foreign law enforcement authorities.

This case is being prosecuted by Senior Trial Counsel Margaret Ann Mahoney of the U.S. Attorney’s Office of the District of New Jersey, and Trial Attorney Jay Bauer of the Human Rights and Special Prosecutions Section of the DOJ Criminal Division. 

An indictment is merely a formal accusation. Defendants are presumed innocent unless proven guilty in a court of law.

NEWARK, N.J. – A California couple was arrested today on charges of operating a $7 million advance fee Ponzi scheme, U.S. Attorney Craig Carpenito announced.

Jason M. Torres, 41, and Jordana Weber, 30, of Lake Tahoe, California, are charged by complaint with one count of wire fraud conspiracy and one count of money laundering. They are scheduled to appear today before U.S. Magistrate Judge Deborah Barnes in Sacramento, California, federal court.

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

Between April 2017 and the present, Torres, Weber, and others owned and operated several shell companies – one of which employed individuals who lived in New Jersey and performed work while in New Jersey – that falsely purported to offer lending services to customers, typically small business owners seeking high value loans, often in excess of $100 million. As part of the scheme, Torres, Weber and others required customers to pay up to 5 percent of a potential total loan amount as a “fee” prior to the loan being funded. 

After the victim’s “fee” was paid, the defendants and others would engage in a fake “due diligence” period, during which they frequently gave victims bogus explanations for why the funding of their loan was delayed. It was also common to provide the victims with falsified or fraudulent documents, including bank statements that purported to show that the shell companies had sufficient money to fund the loan.  

Torres, Weber, and others used the “fees” paid by the victims for their daily living expenses, as well as for numerous lavish purchases, which included several luxury vehicles, high priced artwork, and vacations. The “fees” were also used to pay back previous victims of the fraud, in the manner of a traditional Ponzi scheme. To date, approximately six victims have been identified with a total of $7 million being transferred to bank accounts controlled by Torres, Weber, and others.

The wire fraud charge carries a statutory maximum of 30 years in prison and a $1 million fine. The money laundering charge carries a statutory maximum of 20 years in prison and a fine of not more than $500,000 or twice the value of the property involved, whichever is greater.

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 charge. 

The government is represented by Assistant U.S. Attorney Anthony Torntore of the U.S. Attorney’s Cybercrimes Unit 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. – Twelve members, associates, and suppliers of a drug trafficking organization based in Newark have been charged in connection with their roles in distributing heroin, fentanyl, and crack cocaine and using firearms to protect their illegal operation, U.S. Attorney Craig Carpenito announced today.

The 12 defendants were charged in a complaint unsealed today (six others have been previously charged on separate complaints). Eight of the 12 defendants charged today are scheduled to appear this afternoon before U.S. Magistrate Judge Joseph A. Dickson in Newark federal court. One remains at large. (See table below.)

“That these defendants allegedly used a neighborhood rec center as a place to conceal and sell dangerous drugs is almost beyond comprehension,” U.S. Attorney Carpenito said. “While neighborhood children were coming here to play basketball and chess, they may have been just a few feet away from narcotics and the criminals who sell them. Getting the people who ran this operation off the street is a priority for law enforcement, and together with our partners in the DEA, the Newark Police, the New Jersey State Police and many others, we are doing just that.”

“Today’s operation highlights how cooperation between law enforcement at all levels can successfully lead to the dismantlement of a drug operation,” Special Agent in Charge of the Drug Enforcement Administration’s New Jersey Division, Susan A. Gibson, said. “Those arrested not only held a community hostage with their violence and drug dealing, but they also utilized a community recreation center to deliver and store their heroin. These people were concerned only with making money with no concern for damage they were causing.”

“Once again, a great collaboration with our federal partners helps Newark to become a safer place,” Newark Public Safety Director Anthony F. Ambrose said. “Last year, the US Attorney’s Office was responsible for over 100 violent cases. I’m glad to see this trend continue in 2019. The people of Newark are the benefactors.” 

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

The charges and arrests are the result of a long-running wiretap investigation led by the DEA. The organization’s leaders – Edward Williams and Wali Duncan – obtained their supply of narcotics from Rahim Jackson and Arthur Hardy, who would deliver the narcotics personally or through runners. On numerous occasions, large narcotics deliveries took place in and around the Rotunda Recreation and Wellness Center on Clifton Avenue, where Hardy was the director and Jackson and Williams were employees. These individuals also used the center to stash drugs and money.

Williams and Duncan are members of the G-Shine set of the Bloods street gang, which operates at the Janice Cromer Village public housing complex, also known as the Broadway Townhomes, in Newark. Duncan supplied narcotics to numerous individuals who would sell them in the neighborhood, which is near two elementary schools and a high school. 

U.S. Attorney Carpenito credited special agents of DEA, under the direction of Special Agent in Charge Gibson; members of the Newark Department of Public Safety, under the direction of Public Safety Director Anthony F. Ambrose; and the N.J. State Police, under the direction of Col. Patrick J. Callahan, with the investigation leading to the charges.

He also thanked the Essex County Sheriff’s Office, under the direction of Sheriff Armando B. Fontoura; the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Theodore N. Stephens II; the Rockaway Township Police Department, under the direction of Chief Martin McParland; and special agents of the ATF, under the direction of Special Agent in Charge Charlie J. Patterson in Newark for their assistance.

This investigation was part of the Violent Crime Initiative (VCI), which was formed in August 2017 to combat violent crime in and around Newark. Federal, state, county, and city agencies collaborate and pool resources to prosecute violent offenders. The VCI is composed of the U.S. Attorney’s Office, FBI, ATF, DEA, U.S. Marshals, Newark Department of Public Safety, Essex County Prosecutor’s Office, Essex County Sheriff’s Office, N.J. State Parole Board, Union County Jail, N.J. State Police Regional Operations and Intelligence Center/Real Time Crime Center, N.J. Department of Corrections, East Orange Police Department, and Irvington Police Department. 

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

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

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

 

DEFENDANT

AGE

CHARGES

POTENTIAL PENALTIES

Edward Williams,      a/k/a “Fadia,”

51

Conspiracy to distribute one kilogram or more of heroin

10 year mandatory minimum; up to life

 

Wali Duncan,      a/k/a “Haneef Toler,”      a/k/a “Remix,”      a/k/a “Black Ass,”
 

37

Conspiracy to distribute one kilogram or more of heroin

10 year mandatory minimum; up to life

 

Rahim Jackson,      a/k/a “Rah,”

43

Conspiracy to distribute one kilogram or more of heroin

10 year mandatory minimum; up to life

 

Arthur Hardy,      a/k/a “Art,”

41

Conspiracy to distribute one kilogram or more of heroin

10 year mandatory minimum; up to life

 

Tieshorn Fletcher,      a/k/a “X,”      a/k/a “Fat Boy,”

37

Conspiracy to distribute one kilogram or more of heroin

10 year mandatory minimum; up to life

 

Kareem Collier,      a/k/a “Grimey,”      a/k/a “Grime,”

41

Conspiracy to distribute one kilogram or more of heroin

10 year mandatory minimum; up to life

 

*Fuquan Bunn,      a/k/a “G Fu,”
 

38

Conspiracy to distribute one kilogram or more of heroin

Distribution and possession with intent to distribute heroin and cocaine base

10 year mandatory minimum; up to life

20 year maximum

 

Shyiem Gordon,      a/k/a “GT,” 

24

Conspiracy to distribute one kilogram or more of heroin

10 year mandatory minimum; up to life

 

Michael Graham,      a/k/a “Soulman,”
 

35

Conspiracy to distribute one kilogram or more of heroin

10 year mandatory minimum; up to life

 

**Terrell Evans,      a/k/a “Rell

30

Conspiracy to distribute one kilogram or more of heroin

Distribution and possession with intent to distribute heroin and cocaine base

10 year mandatory minimum; up to life

20 year maximum

 

*Arraheem Washington

42

Conspiracy to distribute one kilogram or more of heroin

10 year mandatory minimum; up to life

 

*Wilfredo P. Jimenez,       a/k/a “Pedro Munoz,”       a/k/a “Pedro Munoz Almonte,”          a/k/a “Carlos Rivera”

47

Conspiracy to distribute one kilogram or more of heroin

Distribution and possession with intent to distribute heroin

10 year mandatory minimum; up to life

Five year mandatory minimum; up to 40 years

 

 

*Already in custody on separate state charges

**At large

NEWARK, N.J. – An MS-13 member previously named one of the FBI’s 10 Most Wanted Fugitives was sentenced today to 300 months in prison for killing a Plainfield, New Jersey, man on behalf of the gang, and agreeing that a conspirator would commit multiple violent acts for the gang, U.S. Attorney Craig Carpenito announced.

Walter Yovany-Gomez, a/k/a “Cholo,” 35, who was a fugitive residing in the Maryland/Virginia area from 2011 to 2017, previously pleaded guilty before U.S. District Judge Stanley R. Chesler to an information charging him with one count of racketeering conspiracy. Judge Chesler imposed the sentence today in Newark federal court.

“This defendant committed a vicious murder and conspired with another MS-13 member to commit further acts of violence,” U.S. Attorney Carpenito said. “When he fled New Jersey and became a fugitive, our partners at the FBI diligently pursued and eventually captured him. Today’s sentence ensures that he will now remain behind bars for a substantial period of time, thus preserving the safety of the community and punishing him appropriately for his actions.” 

“Walter Yovany-Gomez thought he could steal someone’s life and escape unscathed. He obviously underestimated the men and women of the FBI,” Special Agent-in-Charge Gregory W. Ehrie, FBI-Newark, said. “Members of blood-thirsty gangs, like MS-13, who devalue life as part of their business model, need to know that our life’s work is dedicated to keeping our citizens safe and we won't rest until we accomplish that mission.”

According to documents filed in this and other cases and statements made in court:

In September 2013, a Newark grand jury indicted Yovany-Gomez for murder in aid of racketeering and conspiracy to commit murder in an indictment that charged 14 members of Plainfield Locos Salvatrucha (PLS), a New Jersey branch of the Mara Salvatrucha (MS-13) transnational gang, with various gang-related offenses. The charges against Yovany-Gomez focused on the May 2011 murder of Julio Matute, whom law enforcement officers discovered beaten and stabbed to death in Matute’s Plainfield apartment. Yovany-Gomez fled New Jersey after officers went to Yovany-Gomez’s residence to question him.

In April 2017, the FBI placed Yovany-Gomez on its 10 Most Wanted Fugitives List. On Aug. 12, 2017, he was arrested without incident in Woodbridge, Virginia, based on tips received from the public.

Between 2014 and 2016, all 13 of Yovany-Gomez’s co-defendants charged in the September 2013 federal indictment were convicted, including eight MS-13 members who were convicted following a 16-week trial that ended in June 2016.

In May 2011, MS-13 leaders, members, and associates, including Yovany-Gomez, plotted to murder Matute, a PLS recruit, because they believed Matute had been socializing with rival gang members.

On May 8, 2011, Yovany-Gomez and fellow MS-13 member Cruz Flores, a/k/a “Bruja” traveled to Matute’s Plainfield apartment to carry out the murder, meeting Matute and another individual at the residence. After consuming alcohol and controlled substances with the other three individuals, Matute retired to his bedroom to sleep. When Matute attempted to leave the apartment several hours later for work, Yovany-Gomez and Flores assaulted and killed Matute.  During the attack, Yovany-Gomez and Flores struck Matute in the head with an aluminum baseball bat, sliced Matute’s throat with a knife, and stabbed Matute in the back 17 times with a screwdriver. Yovany-Gomez and Flores threatened to harm the individual who witnessed the murder if that person went to the police.

Several weeks after the murder, officers went to question Yovany-Gomez at his residence. When they knocked on his door, Yovany-Gomez jumped out of a second-floor window and fled. PLS members and associates later drove Yovany-Gomez to the Maryland/Virginia area so he could avoid being arrested and prosecuted in connection with the murder. Yovany-Gomez remained in the Maryland/Virginia area until his arrest in August 2017, adopting an alias to further avoid law enforcement detection.

Flores was found guilty of the murder during the trial described above.

In addition to the Matute murder, Yovany-Gomez agreed as part of the racketeering conspiracy that another conspirator would commit multiple acts of violence on behalf of MS-13.

In addition to the prison term, Judge Chesler sentenced Yovany-Gomez to five years of supervised release.

U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Ehrie; and officers of U.S. Immigration and Customs Enforcement, Enforcement and Removal Operations, under the direction Newark Field Office Director John Tsoukaris. He also thanked the Union County Prosecutor’s Office, under the direction of Acting Prosecutor Lyndsay V. Ruotolo, for its assistance. The FBI Washington Field Office’s Violent Crimes Task Force, the Fairfax County Police Department’s Gang Unit, and the Northern Virginia Gang Task Force coordinated the local search for and arrest of Yovany-Gomez. U.S. Attorney Carpenito also acknowledged the U.S. Attorney’s Offices for the Eastern District of Virginia and the District of Maryland for their assistance in the ongoing investigation.

The government is represented by Senior Trial Counsel Jamari Buxton and James Donnelly, Chief of the Violent Crimes Unit of the U.S Attorney’s Office Criminal Division in Newark.

NEWARK, N.J. – A Mexican national was sentenced today to 64 months in prison for his role in conspiring to traffic approximately 300 grams of fentanyl into New Jersey, U.S. Attorney Craig Carpenito announced.

Angel Santo Jerez Matos, 61, a/k/a “El Colonel,” previously pleaded guilty before U.S. District Judge Kevin McNulty to an information charging him with conspiracy to possess with intent to distribute more than 40 grams of fentanyl. Judge McNulty imposed the sentence today in Newark federal court.

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

Matos was a supplier of fentanyl, heroin, and cocaine to a drug trafficking organization operating in and around New Jersey.

Matos and a member of a New Jersey drug trafficking organization were heard, on intercepted communications, discussing the pricing of “cars,” meaning kilograms of narcotics to be shipped from Mexico into the United States through California. The drugs would then be shipped to New Jersey. Additional communications among members of the New Jersey drug trafficking organization revealed that 300 grams of fentanyl that had originated with Matos in Mexico made its way to users in Newark in May 2017.

In addition to the prison term, Judge McNulty sentenced Matos to four years of supervised release.

U.S. Attorney Carpenito credited the Drug Enforcement Administration’s New Jersey Division, under the direction of Special Agent in Charge Susan A. Gibson in Newark, with the investigation leading to today’s sentencing.

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

This case is being conducted under the auspices of the Organized Crime and Drug Enforcement Task Force. 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.

NEWARK, N.J. – A New Jersey company and its principal will pay $2.4 million to resolve allegations that it improperly obtained contracts set aside for companies owned and controlled by service-disabled veterans, U.S. Attorney Craig Carpenito announced

The settlement resolves allegations that Regiment Construction Corp. and its principal, Daniel Hernandez, made false claims in conjunction with contracts awarded to Regiment by the United States. The government contends that Regiment and Hernandez improperly represented that Regiment was eligible to bid on contract set aside for companies owned and controlled by service-disabled veterans when, in fact, a veteran did not own and control Regiment. The United States contends that Regiment was owned by Hernandez, and not the veteran to whom ownership and control was attributed in Regiment’s certification to the United States. 

U.S. Attorney Carpenito credited Special Agent Rafael Valverde of the United States Department of Veteran’s Affair’s Office of Inspector General, and Special Agent Michael Moffa of the U.S. Small Business Administration’s Office of Inspector General, with the investigation.

The government is represented by Assistant U.S. Attorney Mark C. Orlowski of the U.S. Attorney’s Civil Division and David E. Dauenheimer, Deputy Chief of the U.S. Attorney’s Civil Division, in Newark.

A Chinese national living in the United States on a student visa was sentenced today to 37 months in prison followed by one year of supervised release for his role in a scheme to traffic and smuggle counterfeit Apple products, including phony iPhones and iPads, from China into the United States.

Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Craig Carpenito of the District of New Jersey, Special Agent in Charge Brian Michael of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) in Newark and Bergen County Prosecutor Mark Musella made the announcement.

Jianhua “Jeff” Li, 44, previously pleaded guilty before U.S. District Judge Kevin McNulty of the District of New Jersey, to one count of conspiracy to traffic in counterfeit goods and labels and smuggle goods into the United States and one count of trafficking in counterfeit goods.  Judge McNulty imposed the sentence today in Newark federal court.

According to documents filed in this case and statements made in court, from July 2009 through February 2014, Li, working through his company Dream Digitals, conspired with Andreina Becerra, Roberto Volpe, Rosario LaMarca and others to smuggle and traffic into the United States from China more than 40,000 electronic devices and accessories, including iPads and iPhones, along with labels and packaging bearing counterfeit Apple trademarks. 

Li shipped the devices separately from the labels to avoid detection by U.S. Customs and Border Protection officials.  The devices were then shipped to conspirators all over the United States.  Proceeds were funneled back to conspirator accounts in Florida and New Jersey via structured cash deposits and then a portion was transferred to conspirators in Italy, further disguising the source of the funds.  Over $1.1 million in sales proceeds were wired from U.S. accounts into accounts Li controlled overseas.

LaMarca, Becerra, and Volpe previously pleaded guilty to their respective roles in the scheme.  LaMarca was sentenced July 21, 2017, to serve 37 months in prison. Becerra and Volpe were sentenced Oct. 15, 2018, to serve three years’ probation and 22 months in prison, respectively.

The HSI Newark Seaport Investigations Group and the Bergen County Prosecutor’s Financial Crimes Unit investigated the case with significant assistance from HSI Attaché Rome, Europol and Italy’s Guardia di Finanza.

Senior Trial Attorney Kebharu Smith of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Leslie Schwartz of the District of New Jersey prosecuted the case.

NEWARK, N.J. – A Chinese national living in the United States on a student visa was sentenced today to 37 months in prison for his role in a scheme to traffic and smuggle counterfeit Apple products, including phony iPhones and iPads, from China into the United States.

U.S. Attorney Craig Carpenito of the District of New Jersey; Assistant Attorney General Brian Benczkowski of the Justice Department’s Criminal Division; Special Agent in Charge Brian Michael of Homeland Security Investigations (HSI) in Newark, and Bergen County Prosecutor Mark Musella made the announcement.

Jianhua “Jeff” Li, 44, previously pleaded guilty before U.S. District Judge Kevin McNulty to one count of conspiracy to traffic in counterfeit goods and labels and smuggle goods into the United States and one count of trafficking in counterfeit goods. Judge McNulty imposed the sentence today in Newark federal court.

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

From July 2009 through February 2014, Li, working through his company Dream Digitals, conspired with Andreina Becerra, Roberto Volpe, Rosario LaMarca, and others to smuggle and traffic into the United States from China more than 40,000 electronic devices and accessories, including iPads and iPhones, along with labels and packaging bearing counterfeit Apple trademarks. 

Li shipped the devices separately from the labels to avoid detection by U.S. Customs and Border Protection officials. The devices were then shipped to conspirators all over the United States. Proceeds were funneled back to conspirator accounts in Florida and New Jersey via structured cash deposits and then a portion was transferred to conspirators in Italy, further disguising the source of the funds. Over $1.1 million in sales proceeds were wired from U.S. accounts into accounts Li controlled overseas.

In addition to the prison term, Judge McNulty sentenced Li to one year of supervised release.

LaMarca, Becerra, and Volpe previously pleaded guilty to their respective roles in the scheme. LaMarca was sentenced July 21, 2017, to 37 months in prison. Becerra and Volpe were sentenced Oct. 15, 2018, to three years’ probation and 22 months in prison, respectively.

The HSI Newark Seaport Investigations Group and the Bergen County Prosecutor’s Financial Crimes Unit investigated the case with significant assistance from Europol and Italy’s Guardia di Finanza.

The government is represented by Assistant U.S. Attorney Leslie Schwartz of the District of New Jersey and Senior Trial Attorney Kebharu Smith of the Criminal Division’s Computer Crime and Intellectual Property Section.   

TRENTON, N.J. – A doctor with offices in Asbury Park, New Jersey, and Brooklyn was sentenced today to 27 months in prison for unlawfully distributing prescriptions for anabolic steroids and for possessing marijuana with intent to distribute, U.S. Attorney Craig Carpenito announced.

Kevin Custis, 54, of Belle Mead, New Jersey, previously pleaded guilty before U.S. District Judge Peter G. Sheridan to an information charging him with one count of distributing anabolic steroids and one count of possessing marijuana with intent to distribute. Judge Sheridan imposed the sentence today in Trenton federal court. 

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

In 2016 and 2017, Custis wrote and delivered numerous prescriptions for various types of anabolic steroids to two patients. Custis admitted that he knew these prescriptions were not for the treatment of any actual medical condition, but were solely for muscle enhancement, beauty, and muscle building and fitness competitions.

When agents and investigators from the Drug Enforcement Administration (DEA) and the Port Authority of New York and New Jersey-Office of Inspector General searched Custis’ home on June 14, 2017, they found over four kilograms of marijuana and over 150 grams of tetrahydrocannobinal oil. Custis admitted that he intended to distribute these substances and that he had no authority under any federal or state law or regulation to do so. Custis also admitted that he prepared marijuana products for patients in his home kitchen.

In addition to the prison term, Judge Sheridan sentenced Custis to three years of supervised release and fined him $10,000.

U.S. Attorney Carpenito credited special agents of the DEA, under the direction of Special Agent in Charge Susan A. Gibson, New Jersey Field Division; the PANYNJ-OIG, under the direction of Michael Nestor; and the N.J. Division of Consumer Affairs, under the direction of Paul R. Rodriguez, with the investigation leading to today’s sentencing.

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

NEWARK, N.J. – A Washington, New Jersey, man was sentenced today to 240 months in prison for sex crimes, extortion and stalking – including asking a minor girl to produce explicit images of herself and threatening a second girl if she didn’t agree to meet and date him, U.S. Attorney Craig Carpenito announced.

Brandon McIntyre, 27, was previously convicted of two counts of the production of child pornography, one count of the online enticement of a minor to engage in criminal sexual conduct, two counts of sending interstate extortionate threats, and one count of stalking following a one-week trial before U.S. District Judge Kevin McNulty, who imposed the sentence today in Newark federal court. He was sentenced to 240 months in prison on the first three counts, and 60 months in prison on the remaining three counts, all to run concurrently for a total term of 240 months.

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

McIntyre met various minor girls through Facebook, sometimes as himself, other times pretending to be a teenage girl. Over the course of the correspondence with one female, McIntyre threatened to hurt her boyfriend and kill her family when she refused to go out with him. In his interaction with another girl, McIntyre sent her images of his genitals and demanded that she send nude images of herself. McIntyre threatened the girl, claiming he was a state trooper who could arrest and imprison her family members if she did not send him nude images of herself. When one victim threatened to report McIntyre to her school guidance counselor, McIntyre responded, “Do it and see what happens” and “I can have ur family killed too and make u watch.”

McIntyre admitted to law enforcement that he, at times, pretended to be a teenage girl using the alias “Katie Thompson” in online chats with minors. He said he solicited minors to take and send nude images of themselves to him and threatened to harm minors and their loved ones on multiple occasions if they did not comply with his demands.

In addition to the prison term, Judge McNulty sentenced McIntyre to a lifetime term of supervised release.

U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark; the Middlebury, Vermont, Police Department, and the Clinton Police Department with the investigation leading to today’s sentencing.

The government is represented by Assistant U.S. Attorneys Erica Liu and Senior Trial Counsel Danielle Alfonzo Walsman of the U.S. Attorney’s Office’s Criminal Division in Newark.

Defense counsel: Jim Patton Esq., Hackettstown, New Jersey

NEWARK, N.J. – A Union County man has been charged with possessing images of child sexual abuse, U.S. Attorney Craig Carpenito announced today.

Joseph Hinksmon, 41, of Cranford, New Jersey, is charged in a criminal complaint with one count of possession of child pornography.  He is expected to appear later this afternoon before U.S. Magistrate Judge Cathy L. Waldor in Newark federal court.

According to the complaint, filed today:

On or about July 24, 2019, law enforcement lawfully obtained from Hinkmon’s residence multiple computers and electronic storage media belonging to Hinksmon, which contained approximately 10,000 images and 1,000 videos of child pornography, including images of prepubescent children being sexually abused.   

The charge of possession of child pornography carries a maximum potential penalty of 20 years in prison and a $250,000 fine.

U.S. Attorney Craig Carpenito credited Special Agents with the Federal Bureau of Investigation, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, with the investigation leading to the charge.

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

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

Defense Counsel: Lisa Baitsell, Esq., White Plains, New York

NEWARK, N.J. – A Bergen County man admitted today that he stole more than $750,000 from the U.S. Government through a scheme to exchange government benefits for cash, U.S. Attorney Craig Carpenito announced.     

Jamil Bader, 60, of Teaneck, New Jersey, pleaded guilty before U.S. District Judge Brian R. Martinotti in Newark federal court to an indictment charging him with one count of Supplemental Nutrition Assistance Program (SNAP) benefits (formerly known as the food stamp program) fraud.

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

Every SNAP recipient receives an Electronic Benefits Transfer (EBT) card, similar to a debit card, with which to make purchases. Every retailer authorized to accept SNAP benefits has an EBT terminal. Food purchases are made by swiping the card at the terminal. After the customer enters a Personal Identification Number (PIN), the EBT terminal verifies the PIN, determines whether the customer’s account balance is sufficient to cover the transaction and informs the retailer whether the transaction should be authorized or declined. If the transaction is authorized, the amount of the purchase is then deducted from the SNAP benefits reserved for the customer, and the amount is credited to the retailer’s designated bank account.

Bader admitted that he controlled a small grocery store that was located on Clinton Avenue in Newark, New Jersey between September 2013 and September 2016. Bader acknowledged placing this store in another person’s name because he had previously been banned from participation in SNAP for similar conduct. Bader admitted that he repeatedly exchanged SNAP benefits for cash and kept a portion of the proceeds for himself. Bader acknowledged that this scheme caused at least $754,424 in losses to the federal government. Bader also admitted fleeing from the United States and obtaining a foreign passport in an effort to avoid these criminal charges.

The SNAP benefits charge carries a maximum penalty of twenty years’ imprisonment and a $250,000 fine. Sentencing is scheduled for November 7, 2019.

U.S. Attorney Carpenito credited special agents of the United States Department of Agriculture – Office of the Inspector General, under the direction of Special Agent in Charge Bethanne M. Dinkins with the investigation leading to today’s guilty plea. The U.S. Attorney also thanked the United States Marshal’s Service, under the direction of U.S. Marshal Juan Mattos in Newark, and U.S. Immigration & Customs Enforcement, Homeland Security Investigations, for their assistance with Bader’s apprehension and return to New Jersey.

The government is represented by Special Assistant United States Attorney Shawn Barnes of the U.S. Attorney’s Office Criminal Division in Newark.

Defense counsel:         Frederick “Chip” Dunne, III, Esq.  

NEWARK, N.J. – A Monmouth County, New Jersey, man was indicted today by a federal grand jury for operating an unlicensed money transmitting business through which he charged customers fees to convert more than $2 million in cash into the digital currency Bitcoin.

William Green, 46, of Wall Township, was charged by indictment with one count of operating an unlicensed money transmitting business.  He is scheduled to appear before a United States District Judge on a date to be scheduled.  He was previously charged with the same offense by criminal complaint on February 28, 2019.

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

Green maintained a business that operated a website called “Destination Bitcoin.”  Through the Destination Bitcoin website, Green received money from members of the public (the “customers”), deposited such money into bank accounts maintained by Green, and then converted such money into Bitcoin in accordance with the customers’ instructions.  Green charged the customers a fee for this service.

Federal law provides that any person who owns or controls a money transmitting business shall register the business (whether or not the business is licensed as a money transmitting business in any State) with the Secretary of the Treasury.  However, Green did not register, either in his own name or in the name of his business, with the Secretary of the United States Treasury as a money transmitting business.

The charge of operating an unlicensed money transmitting business carries a maximum penalty of 5 years imprisonment and a $250,000 fine. 

U.S. Attorney Carpenito credited special agents of IRS - Criminal Investigation, under the direction of Special Agent in Charge John R. Tafur, as well as special agents of the U.S. Immigration & Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge Brian Michael, with the investigation leading to today’s indictment.

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

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

Defense counsel: Michael Gilberti, Esq.

CAMDEN, N.J. – A convicted felon from North Carolina today admitted his role in an illegal scheme to buy weapons in Georgia and transport them to New Jersey for resale, U.S. Attorney Craig Carpenito announced.

Anthony Doyle, 28, of Fayetteville, North Carolina, pleaded guilty before U.S. District Judge Joseph Rodriguez in Camden federal court to an information charging him with conspiring to illegally traffic firearms and with being a felon in possession of a firearm.

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

On January 25, 2018, law enforcement officers conducted a traffic stop in Deptford, New Jersey, of a car that was registered to Doyle. At the time of the traffic stop, Doyle was riding as the front seat passenger in the car. A woman named Anastacia Thomas, 26, who is also from Fayetteville, was driving the car.

During the stop, law enforcement officers observed a Glock handgun in plain view on the front seat passenger floor. This gun was loaded with 14 hollow tip bullets. The officers also observed a firearm box in the backseat of the car, next to a backpack. A search of the car and backpack revealed four additional handguns and two additional firearm boxes.

Law enforcement officers subsequently learned that Thomas had purchased all four of the handguns in the backpack on January 22, 2018, from a pawnshop in Jonesboro, Georgia. In addition, Thomas had purchased several other firearms from that same pawnshop over the course of multiple visits. Doyle had accompanied Thomas to the pawnshop on at least two of those visits.

The investigation revealed that from November 30, 2017, to January 25, 2018, Doyle and Thomas conspired and worked together to engage in the business of dealing in firearms without a license. Doyle, who was a convicted felon and therefore could not legally purchase firearms, was responsible for selecting the firearms, transporting the firearms up to New Jersey, finding buyers for the firearms, and selling the firearms at a profit. To accomplish these tasks, Doyle used his social media accounts to advertise the firearms for sale, negotiate pricing for the firearms, and arrange the firearm sales. Doyle’s online discussions regarding illegal firearm trafficking are documented in great detail over the course of hundreds of pages of online messages that were analyzed by law enforcement officers.

Meanwhile, Thomas, who was not a felon at the time of the traffic stop, was responsible for purchasing firearms from federally licensed firearms dealers. Thomas also helped Doyle transport the firearms to New Jersey for resale and handled the profits from the resales.

The charge of conspiring to engage in gun trafficking carries a maximum potential penalty of five years in prison and a $250,000 fine. The charge of being a felon in possession of a firearm carries a maximum penalty of ten years in prison and a $250,000 fine. Doyle’s sentencing is scheduled for October 28, 2019.

Thomas previously pleaded guilty to her role in the firearm-trafficking conspiracy and her sentencing is scheduled for October 7, 2019.

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

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

Defense counsel: Doyle: Christopher O’Malley Esq., Assistant Federal Public Defender, Camden
Thomas: Paul A. Sarmousakis Esq., Avalon, New Jersey

NEWARK, N.J. – A North Bergen man was arrested today on charges that he attacked a postal worker, U.S. Attorney Craig Carpenito announced.

Eduardo Perez, 34, is charged by complaint with one count of assaulting a federal worker.  He is scheduled to appear this afternoon before U.S. Magistrate Judge Cathy L. Waldor in Newark federal court.

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

On or about June 22, 2019, defendant Perez parked his white pickup truck in an employees-only space in the parking lot of the Woodcliff Station Post Office in North Bergen, New Jersey.  When Perez returned to his vehicle after closing time, he found that a postal vehicle was blocking the entrance to the parking lot, per Woodcliff Station policy.  Although the exit from the lot remained unobstructed, Perez became irate and aggressive toward postal employees in the lot, demanding that the postal vehicle be removed from the entrance so that he could exit that way.  Perez eventually removed his truck from the lot through the exit, nearly striking a postal employee in the process, but returned to the lot only moments later and accosted a postal worker who was unloading parcels from his postal vehicle.  Perez swung his fist repeatedly toward the victim, striking the victim’s face and causing him to fall backward into his postal vehicle and then to the ground, knocking him unconscious.  Perez then fled the scene.  The victim was subsequently hospitalized for severe injuries to his face and head.

The charge of assaulting a federal worker carries a maximum potential penalty of 20 years in prison and a $250,000 fine.

U.S. Attorney Carpenito credited postal inspectors of the United States Postal Inspection Service, under the direction of Inspector in Charge James Buthorn in Newark, with the investigation leading to the charges.  He also thanked the North Bergen Police Department for their assistance.

The government is represented by Assistant U.S. Attorney Sarah A. Sulkowski of the U.S. Attorney’s Office’s Public Protection Unit in Newark.

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

 

A federal grand jury has charged four Chinese nationals and a Chinese company with violating the International Emergency Economic Powers Act (IEEPA), conspiracy to violate IEEPA and defraud the United States; conspiracy to violate, evade and avoid restrictions imposed under the Weapons of Mass Destruction Proliferators Sanctions Regulations (WMDPSR); and conspiracy to launder monetary instruments.

The announcement was made by Assistant Attorney General for National Security John C. Demers, Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, and U.S. Attorney Craig Carpenito for the District of New Jersey.

The indictment returned yesterday by a federal grand jury in Newark, New Jersey charges Ma Xiaohong (Ma); her company, Dandong Hongxiang Industrial Development Co. Ltd. (DHID); and three of DHID’s top executives – general manager Zhou Jianshu (Zhou), deputy general manager Hong Jinhua (Hong) and financial manager Luo Chuanxu (Luo) – with violating IEEPA, conspiracy to violate IEEPA and to defraud the United States and conspiracy to launder monetary instruments.

“Through the use of more than 20 front companies, the defendants are alleged to have sought to obscure illicit financial dealings on behalf of sanctioned North Korean entities that were involved in the proliferation of weapons of mass destruction,” said Assistant Attorney General John Demers.  “But through the tireless efforts of federal law enforcement, we were able to shine a light on their lawless conduct and take the first step in bringing them to justice.”

“Any Chinese company conspiring to do business with sanctioned WMD proliferators through the U.S. banking system should think twice,” said Assistant Attorney General Benczkowski. “This indictment shows the Department’s resolve to use every tool of criminal prosecution to detect illicit financial transactions and enforce U.S. sanctions.”

“Ma, her company, and her employees tried to defraud the United States by evading sanctions restrictions and doing business with proliferators of weapons of mass destruction,” said U.S. Attorney Carpenito.  “We will continue to work closely with our partners in the National Security and Criminal Divisions in order to identify and prosecute defendants like these, in order to preserve a safer and more fair environment for all.”

According to the indictment, DHID was a Chinese company whose core business was trade with North Korea.  DHID allegedly openly worked with North Korea-based Korea Kwangson Banking Corporation (KKBC) prior to Aug. 11, 2009, when the Office of Foreign Assets Control (OFAC) designated KKBC as a Specially Designated National (SDN) for providing U.S. dollar financial services for two other North Korean entities, Tanchon Commercial Bank (Tanchon) and Korea Hyoksin Trading Corporation (Hyoksin).  President Bush identified Tanchon as a weapons of mass destruction proliferator in June 2005, and OFAC designated Hyoksin as an SDN under the WMDPSR in July 2009.  Tanchon and Hyoksin were identified and designated because of their ties to Korea Mining Development Trading Company (KOMID), which OFAC has described as North Korea’s premier arms dealer and main exporter of goods and equipment related to ballistic missiles and conventional weapons.

Beginning after the designation of KKBC as an SDN in August 2009, Ma allegedly conspired with Zhou, Hong and Luo to create or acquire numerous front companies to conduct U.S. dollar transactions designed to evade U.S. sanctions. The indictment alleges that from December 2009 to September 2015, the defendants established front companies in offshore jurisdictions such as the British Virgin Islands, the Seychelles, Hong Kong, Wales, England, and Anguilla, and opened Chinese bank accounts held in the names of the front companies at banks in China that maintained correspondent accounts in the United States.  The defendants used these accounts to conduct U.S. dollar financial transactions through the U.S. banking system when completing sales to North Korea. These sales transactions were allegedly financed or guaranteed by KKBC.  These front companies facilitated the financial transactions to hide KKBC’s presence from correspondent banks in the United States, including a bank processing center in Newark, New Jersey, according to the allegations in the indictment.  As a result of the defendants’ alleged scheme, KKBC was able to cause financial transactions in U.S. dollars to transit through the U.S. correspondent banks without being detected by the banks and, thus, were not blocked under the WMDPSR program.

Ma, Zhou, Hong and Luo face a statutory maximum sentence of 20 years in prison and a $1 million fine on the charge of violating IEEPA, a maximum of five years in prison and a $250,000 fine on conspiracy to violate IEEPA and to defraud the United States, and a maximum of 20 years in prison and a $500,000 fine on the charge of conspiracy to launder monetary instruments.  The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendants will be determined by a judge. 

The charges in the indictment are merely allegations, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

The FBI is handling the case. The Criminal Division’s Office of International Affairs provided significant assistance in the investigation. Trial Attorney Jennifer Wallis of the Criminal Division’s Money Laundering and Asset Recovery  Section; Trial Attorney Christian E. Ford of the National Security Division’s Counterintelligence and Export Control Section; and Assistant U.S. Attorney Joyce M. Malliet of the National Security Unit, Sarah Devlin, Chief of the Asset Recovery and Money Laundering Unit (ARMLU), and Assistant U.S. Attorney Barbara Ward of ARMLU in the U.S. Attorney’s Office for the District of New Jersey are prosecuting the case.

NEWARK, N.J. – A federal grand jury has charged four Chinese nationals and a Chinese company with violating the International Emergency Economic Powers Act (IEEPA), conspiracy to violate IEEPA and to defraud the United States; conspiracy to violate, evade and avoid restrictions of the Weapons of Mass Destruction Proliferators Regulations (WMDPR); and conspiracy to launder monetary instruments, U.S. Attorney Craig Carpenito for the District of New Jersey, Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, and Assistant Attorney General John C. Demers of the Justice Department’s National Security Division announced.

The indictment returned yesterday by a federal grand jury in Newark charges Ma Xiaohong (Ma); her company, Dandong Hongxiang Industrial Development Co. Ltd. (DHID); and three of DHID’s top executives – general manager Zhou Jianshu (Zhou), deputy general manager Hong Jinhua (Hong) and financial manager Luo Chuanxu (Luo) – with violating IEEPA, conspiracy to violate IEEPA and to defraud the United States; and conspiracy to launder monetary instruments.

“Ma, her company, and her employees tried to defraud the United States by evading sanctions restrictions and doing business with proliferators of weapons of mass destruction,” said U.S. Attorney Carpenito, “We will continue to work closely with our partners in the National Security and Criminal Divisions in order to identify and prosecute defendants like these, in order to preserve a safer and more fair environment for all.”

“Through the use of more than 20 front companies, the defendants are alleged to have sought to obscure illicit financial dealings on behalf of sanctioned North Korean entities that were involved in the proliferation of weapons of mass destruction,” said Assistant Attorney General John Demers. “But through the tireless efforts of federal law enforcement, we were able to shine a light on their lawless conduct and take the first step in bringing them to justice.”

“Any Chinese company conspiring to do business with sanctioned WMD proliferators through the U.S. banking system should think twice,” said Assistant Attorney General Benczkowski. “This indictment shows the Department’s resolve to use every tool of criminal prosecution to detect illicit financial transactions and enforce U.S. sanctions.”

According to the indictment in this case, DHID is primarily owned by Ma and is located near the North Korean border. DHID allegedly openly worked with North Korea-based Korea Kwangson Banking Corporation (KKBC) prior to Aug. 11, 2009, when the Office of Foreign Assets Control (OFAC) designated KKBC as a Specially Designated National (SDN) for providing U.S. dollar financial services for two other North Korean entities, Tanchon Commercial Bank (Tanchon) and Korea Hyoksin Trading Corporation (Hyoksin). President Bush identified Tanchon as a weapons of mass destruction proliferator in June 2005, and OFAC designated Hyoksin as an SDN under the WMDPSR in July 2009. Tanchon and Hyoksin were so identified and designated because of their ties to Korea Mining Development Trading Company (KOMID), which OFAC has described as North Korea’s premier arms dealer and main exporter of goods and equipment related to ballistic missiles and conventional weapons.

Beginning after the designation of KKBC as an SDN in August 2009, Ma allegedly conspired with Zhou, Hong and Luo to create or acquire numerous front companies to conduct U.S. dollar transactions designed to evade U.S. sanctions. The indictment alleges that from December 2009 to September 2015, DHID used these front companies, established in offshore jurisdictions such as the British Virgin Islands, the Seychelles, Hong Kong, Wales, England, and Anguilla, and opened Chinese bank accounts to conduct U.S. dollar financial transactions through the U.S. banking system when completing sales to North Korea. These sales transactions were allegedly financed or guaranteed by KKBC. These front companies facilitated the financial transactions to hide KKBC’s presence from correspondent banks in the United States, including a bank processing center in Newark, New Jersey, according to the allegations in the indictment. As a result of the defendants’ alleged scheme, KKBC was able to cause financial transactions in U.S. dollars to transit through the U.S. correspondent banks without being detected by the banks and, thus, were not blocked under the WMDPSR program.

Ma, Zhou, Hong and Luo face a maximum of 20 years’ imprisonment and a $1 million fine on the charge of violating IEEPA, a maximum of 5 years’ imprisonment and a $250,000 fine on conspiracy to violate IEEPA and to defraud the United States, and a maximum of 20 years’ imprisonment and a $500,000 fine on the charge of conspiracy to launder monetary instruments.

U.S. Attorney Carpenito, Assistant Attorney General Benczkowski, and Assistant Attorney General Demers credited special agents of the Federal Bureau of Investigation, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark and Special Agent in Charge Sean Kaul in Phoenix, Arizona, for the investigation leading to the indictment.

The government is represented by Assistant U.S. Attorney Joyce M. Malliet of the National Security Unit, Sarah Devlin, Chief of the Asset Recovery and Money Laundering Unit (ARMLU), and Assistant U.S. Attorney Barbara Ward of ARMLU in the U.S. Attorney’s Office for the District of New Jersey; Trial Attorney Jennifer Wallis of the Criminal Division’s Money Laundering and Asset Recovery Section; and Trial Attorney Christian E. Ford of the National Security Division’s Counterintelligence and Export Control Section.

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

NEWARK, N.J. – A Union Township, New Jersey, resident with businesses in Newark will appear in court today on charges that he operated a massive unlicensed check cashing operation that cashed over $400 million in checks, U.S. Attorney Craig Carpenito announced.

Fernando Q. Martins, 40, of Union, is charged by complaint with one count of operating an unlicensed money transmitting business. He was arrested on Friday, July 19, 2019, and had an initial appearance before U.S. Magistrate Judge Michael A. Hammer in Newark federal court. Martins is expected to appear before Judge Hammer at 12:30 p.m. today for a bail hearing.

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

Since at least 2015, Martins, despite holding no license, operated a scheme in which he cashed checks, mostly from customers in the construction and building trades, for a fee. In total, Martins and those working for him cashed over $400 million in checks. In addition to cashing checks for his customers, Martins also facilitated the scheme by allowing customers to write checks to businesses he controlled. In exchange for their fees, Martins’ customers could avoid the cash being reported on Currency Transaction Reports. This facilitated the customers’ ability to pay off-the-books employees and laborers in cash and avoid payroll and income taxes.

The charge of operating an unlicensed money transmitting business carries a maximum potential penalty of 5 years in prison and a fine of the greater of (1) twice the gross financial gain derived from the offense, (2) twice the loss caused by the offense, or (3) $250,000.

U.S. Attorney Carpenito credited agents of the Internal Revenue Service, Criminal Investigation, under the direction of Special Agent in Charge John R. Tafur in Newark, and U.S. Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge Brian Michael in Newark with the investigation leading to the charge against Martins.

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

Defense counsel: Chester Keller, Esq.

NEWARK, N.J. – A Dominican man admitted today that he participated 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 or about February 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.

The conspiracy charge to which Lazala pleaded guilty carries a mandatory minimum penalty of 5 years in prison, a maximum potential penalty of 40 years in prison, and a $5 million fine.  Sentencing is scheduled for November 4, 2019. 

Lazala has been in custody since his arrest in New York on February 5, 2018.

U.S. Attorney Carpenito credited special agents of U.S. Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge Brian Michael, with the investigation leading to today’s guilty plea.

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

Defense counsel: David Holman Esq., Newark, New Jersey

CAMDEN, N.J. – A Camden County, New Jersey, man who owned a janitorial supply company was sentenced today to 50 months in prison for submitting fraudulent bills to a customer and failing to pay taxes on the illicit proceeds of his scheme, U.S. Attorney Craig Carpenito announced.

Mitchell Bleicher, 53, previously pleaded guilty before U.S. District Judge Robert B. Kugler to an information charging him with one count each of wire fraud, money laundering, and income tax evasion. Judge Kugler imposed the sentence today in Camden federal court.

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

Bleicher was the owner and operator of Allied Materials Inc. (Allied), a janitorial supply company in Berlin, New Jersey. Allied sold janitorial and cleaning supplies, office and break room supplies, food service items, safety equipment, and business printing and imprinted items.

Bleicher admitted that between 2009 and April 2018, he submitted invoices to Company 1, headquartered in Cherry Hill, New Jersey, that falsely listed products that Allied purportedly delivered to Company 1, when, in fact, Allied had not delivered those products. Allied’s fraudulent invoices also inflated the number of products that were actually delivered. As part of his scheme, and to ensure that his fraudulent invoices were accepted, Bleicher admitted that he paid a contractor working in the facilities department of Company 1 who was responsible for the janitorial supplies. Once that contractor left, Bleicher continued his fraudulent activity with the contractor’s replacement and rewarded him by buying him expensive dinners, taking him to professional sports games like the Philadelphia 76ers, and providing him with expensive wines. Later, Bleicher recruited an employee of Company 1 and gave her the fraudulent invoices to submit for payment.

Bleicher admitted that he used the money he got from the scheme – $1,917,381 – on numerous personal expenditures, such as Rolex watches, two Rolls Royce automobiles, two Subaru automobiles, motorcycles, home renovations and college tuition for his children.

Bleicher acknowledged that he failed to pay taxes on the money he received through fraud. Although he filed income tax returns with the IRS for 2011 through 2017, Bleicher did not report the money that he fraudulently obtained from Company 1. By not reporting that additional taxable income, Bleicher admitted that he defrauded the IRS of $578,902 in income tax revenue.

In addition to the prison term, Judge Kugler sentenced Bleicher to three years of supervised release, and ordered him to pay $9.5 million in restitution to Company 1 and $584,255 in restitution to the IRS.

U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Michael T. Harpster in Philadelphia; 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 sentencing.

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

Defense counsel: Robert E. Welsh Esq., Philadelphia

NEWARK, N.J. – A Bergen County, New Jersey, man appeared in court today on charges of mail fraud related to a scheme through which he submitted thousands of false insurance claims to courier delivery service companies, resulting in a loss of $1.7 million, U.S. Attorney Craig Carpenito announced.

Enrico DiCaprio, a/k/a “Sergio Leone,” a/k/a “Hakan Arikan,” 57, of Edgewater, New Jersey, is charged by complaint with one count of mail fraud. He appeared before U.S. Magistrate Judge Michael A. Hammer in Newark federal court.

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

Beginning in December 2016 and continuing to July 2019, DiCaprio devised and maintained a scheme to defraud the victims, two international courier delivery service companies. Using various aliases and entity names, DiCaprio allegedly submitted thousands of false insurance claims for lost, damaged, and stolen items shipped by the victims. The items were not, in fact, lost, damaged, or stolen.

In response to the fraudulent claims, the victim companies issued reimbursement checks to DiCaprio via the U.S. Postal Service, which were then deposited into his bank accounts. DiCaprio has received approximately $1.7 million in checks from the victims.

The count of mail fraud carries a maximum penalty of 30 years in prison and a $1 million fine.

U.S. Attorney Carpenito credited inspectors of the U.S. Postal Inspection Service, under the direction of James Buthorn, with the investigation leading to today’s charges.

The government is represented by Assistant U.S. Attorney Lauren E. Repole of the U.S. Attorney’s Office Organized Crime and Drug Enforcement Task Force Unit in Newark.
The charge and allegations in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.

Defense counsel: Saverio Viggiano Esq., Assistant Federal Public Defender, Newark

NEWARK, N.J. – A City of Paterson police officer today admitted conspiring to violate the civil rights of individuals in Paterson, using unreasonable and excessive force, and filing a false police report to conceal his criminal activity, U.S. Attorney Craig Carpenito announced.

Police Officer Frank Toledo, 30, of Paterson, pleaded guilty before U.S. District Judge Katharine S. Hayden in Newark federal court to a three-count information charging him with conspiracy to violate individuals’ civil rights, using unreasonable and excessive force in violation of individuals’ civil rights, and filing a false police report.

“The U.S. Attorney’s Office and our law enforcement partners remain committed to identifying and prosecuting corrupt police officers who violate the civil rights of our people,” U.S. Attorney Carpenito said. “We will continue to aggressively pursue these cases, and we are grateful to our counterparts at the FBI, the Paterson Police Department and the Passaic County Prosecutor’s Office, for their dedicated assistance on this investigation.”

“The FBI has a long history of standing with and assisting our fellow law enforcement officers,” Gregory W. Ehrie, FBI Special Agent in Charge in Newark, said. “When a police department finds rogue officers who violate civil rights, we will answer the call to help rid that department of anyone who tarnishes the badge they wear.”

According to documents filed in this and other cases and statements made in court:

Toledo, along with other Paterson police officers, including Eudy Ramos, Jonathan Bustios, Daniel Pent, Matthew Torres, and others, stopped and searched motor vehicles, without any justification, and stole cash and other items from the occupants. Toledo and the other officers also stopped and searched individuals on the streets of Paterson, and illegally took their money. Toledo and other officers arrested individuals in Paterson, took cash from them, and split it among themselves. To cover up their criminal activity, Toledo and his fellow officers then filed false police reports. For example, on Dec. 2, 2017, Toledo and Ramos stopped and arrested an individual in Paterson and stole approximately $1,000, which they split. Toledo and Ramos then filed a false police report omitting that they had stolen $1,000 from the arrestee.

Toledo communicated via text message with his conspirators regarding their illegal activity. In one text message, on Nov. 16, 2017, Toledo wrote to Bustios, “everything we do is illegal.” In another, Bustios sent Toledo a text message with an animated talking pig that said, “I’m tryin’ to go mango hunting. Let’s goooo.” Toledo replied with an address and wrote “meet me here,” telling Bustios to meet him at a location where they could look to illegally seize “mangos,” a code word for cash.

While on official duty, Toledo also routinely used unreasonable and excessive force in his encounters with individuals in Paterson, causing them bodily harm. For instance, in three incidents in 2017:

• Toledo chased and apprehended a juvenile, pushed the juvenile to the ground, and punched the juvenile several times. Toledo later told Bustios, “I’ve been borderline blacking out when I catch these n[ ]” and “I beat that n[ ] like he owed me money.” Toledo also told Bustios that when he used force on the juvenile, he “was no longer a cop.”

• Toledo and Ramos chased and tackled an individual in Paterson and struck the individual several times in the body. They then released the individual without filing charges. The incident was recorded by a third party and uploaded to YouTube. Toledo told Bustios that the individual who recorded the incident “missed the best part,” which was when Toledo “laid him out.” Toledo then said, “funny shit is that we cut him” and “didn’t even lock him up.”

• Toledo and Torres arrested an individual, handcuffed him behind his back, and placed him in the backseat of their police car. During the ride to police department headquarters, Toledo depressed the brakes on his police car in order to force the individual to slam his body and head against the divider in the backseat of the police car, a tactic known as “brake-checking.” Toledo recorded the incident on his cell phone and sent it to others.

The conspiracy to violate civil rights and the deprivation of civil rights charges each carry a maximum penalty of 10 years in prison. The false records count carries a maximum penalty of 20 years in prison. The maximum fine for each count is $250,000. Sentencing is scheduled for Oct. 22, 2019.

Bustios pleaded guilty in December 2018 to conspiring to deprive individuals of their civil rights and to extortion under color of official right. Torres pleaded guilty in May 2019 to conspiring to deprive individuals of their civil rights and to filing a false police report. His sentencing is scheduled for Sept. 9, 2019.

Ramos was indicted in a nine-count indictment with conspiring to deprive individuals of their civils rights, depriving individuals of their civil rights, and filing false police reports. His case is pending before Judge Hayden. Daniel Pent was previously charged by complaint with conspiring to deprive individuals of their civil rights. His case, too, is pending. The charges and allegations against them are merely accusations, and they are presumed innocent unless and until proven guilty.

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. He also thanked the Passaic County Prosecutor’s Office, under the direction of Passaic County Prosecutor Camelia M. Valdes, the Paterson Police Department, under the direction of Paterson Police Director Jerry Speziale and Police Chief Troy Oswald, and the Paterson Police Department Office of Internal Affairs, for their assistance in the investigation.

The government is represented by Assistant U.S. Attorney Rahul Agarwal, Deputy Chief of the Criminal Division.

Defense counsel: Dennis S. Cleary Esq., West Orange, New Jersey

NEWARK, N.J. – A U.S. Postal Service (USPS) mail carrier was convicted today of conspiring to defraud the United States by getting paid to assist a drug dealer in receiving packages of marijuana through the mails, U.S. Attorney Craig Carpenito announced.

Fred Rivers, 47, of Newark, was convicted of one count of conspiracy to defraud the United States by interfering with and obstructing the lawful functions of the USPS to properly deliver only legal and permissible substances and materials through the mails, and for USPS employees to receive only lawful compensation. The jury deliberated for one day, following a four-day trial before U.S. District Judge Esther Salas in Newark federal court. The jury acquitted Rivers of one count of taking bribes. 

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

Rivers was a mail carrier at the USPS Springfield Station in Newark. From October 2016 through September 2017, he accepted cash payments from Glenn Blackstone in exchange for intercepting packages containing pounds of marijuana that were sent through the mail. Rivers removed the packages – which were addressed to fake names, but real addresses in Newark – and delivered them to Blackstone in the employee parking lot of the Springfield Station. Rivers used a scanner to falsely indicate in USPS records that the packages had been delivered to the addresses on the labels. Rivers received cash payments of approximately $100 from Blackstone for each delivery. Rivers began delivering the intercepted parcels to Blackstone in exchange for cash after another mail carrier, Leonard Gresham, asked Rivers to make the deliveries when Gresham was unavailable to do so.

The conspiracy charge carries a maximum potential penalty of five years in prison and a maximum fine of $250,000 or twice the gross gain from the offense. Rivers is scheduled to be sentenced on Oct. 29, 2019.

 On Feb. 13, 2018, Gresham pleaded guilty to bribery for his role in the scheme; on April 17, 2018, Blackstone pleaded guilty to marijuana trafficking and bribery. Both are awaiting sentencing before Judge Salas.

U.S. Attorney 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 verdict.

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

Allegedly Paid and Received Kickbacks in Connection with Medically Unnecessary Prescriptions for Pain Creams

NEWARK, N.J. – A doctor and three people associated with a pharmacy were charged today with their respective roles in defrauding the federal workers’ compensation program in a $10 million scheme involving illegal kickbacks and medically unnecessary prescriptions for pain creams, U.S. Attorney Craig Carpenito announced.

Mark Filippone M.D., 71, of Wallington, New Jersey; Joseph Miller, 33, a/k/a “Joseph Vangelas,” of Fort Lee, New Jersey; Marlene Vangelas, 58, of River Vale, New Jersey; and Zachary Ohebshalom, 33, of Edgewater, New Jersey, were each charged by complaint with one count of conspiring to commit health care fraud and one count of violating the federal anti-kickback statute. The defendants are scheduled to appear this afternoon before U.S. Magistrate Judge Michael A. Hammer in Newark federal court.

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

Beginning in November 2015, the defendants conspired to obtain more than $10 million 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 traveled from as far away as Florida and Georgia to see him.

Filippone also prescribed expensive topical pain creams, which were not needed or wanted by many of his patients. The complaint alleges that Filippone steered these prescriptions to a pharmacy in Fairlawn, New Jersey, which was owned and operated by Miller and Vangelas, who, along with Ohebshalom, directed their pharmacists 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. The trio then printed prescription labels for Filippone to use with his patients. Dr. Filippone used the pre-printed labels and sent the prescriptions back to Miller, Vangelas, and Ohebshalom. In order to induce Filippone to prescribe the medically unnecessary pain creams in the exact formulations they wished to obtain, Miller and Vangelas purchased Filippone’s medical office for above fair market value, and then permitted Dr. Filippone to continue to use the premises, for which he routinely failed to pay rent. Miller, Vangelas, and Ohebshalom conspired to leverage the property to force Filippone to continue to send prescriptions to their pharmacy. Filippone continued to feed prescriptions to the pharmacy, so long as Miller and Vangelas 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; the count of violating the federal anti-kickback statute is punishable by a maximum penalty of five years in prison. Both counts are also punishable by a fine of $250,000, or twice the gross gain or loss derived from the offense, whichever is greater.

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 Investigations, 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 David M. Eskew, Chief of the Health Care & Government Fraud Unit in the Criminal Division, Newark.

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

CAMDEN, N.J. – An Atlantic County, New Jersey, man who was previously employed by the N.J. Department of Child Protection and Permanency (NJDCP&P) was charged today for allegedly receiving, distributing and producing images of child sexual abuse, U.S. Attorney Craig Carpenito announced.

Kayan Frazier, 27, of Somers Point, New Jersey, is charged by complaint with one count of producing visual depictions of a child engaged in sexually explicit conduct, one count of receipt of child pornography and one count of distribution of child pornography. Frazier is expected to appear this afternoon before U.S. Magistrate Judge Karen M. Williams in Camden federal court.

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

After receiving a report of images of child sexual abuse distributed via Tumblr, law enforcement officers identified Frazier, who was then employed as a case worker at NJDCP&P, as the sender.  On April 12, 2019, the Atlantic County Prosecutor’s Office obtained a search warrant for Frazier’s residence and, while executing the warrant, observed Frazier in the company of a minor. Law enforcement officers recovered thousands of additional images of child pornography on Frazier’s cellular telephone and other electronic media, which included images of the minor at his residence. 

Frazier was arrested on April 15, 2019, by the Atlantic County Prosecutor’s Office and charged with child endangerment, and has been detained without bail. 

The receipt and distribution of child pornography offenses each carry a mandatory minimum sentence of five years in prison, a maximum potential penalty of 20 years in prison, and a $250,000 fine. The production of child pornography carries a mandatory minimum sentence of 15 years in prison, a maximum potential penalty of 30 years in prison, and a $250,000 fine.

U.S. Attorney Carpenito credited special agents of FBI, Atlantic City Resident Agency, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark; the Atlantic County Prosecutor’s Office, under the direction of Prosecutor Damon Tyner; the Atlantic County Sheriff’s Office, under the direction of Sheriff Eric Scheffler; the N.J. State Police, under the direction of Col. Patrick J. Shanahan; and the N.J. Human Services Police with the investigation.

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

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

CAMDEN, N.J. – An Atlantic County, New Jersey, man has been convicted on heroin trafficking, firearms and witness tampering charges, U.S. Attorney Craig Carpenito announced today.

Sean Figaro, a/k/a “Carlito,” a/k/a “Carlito the don,” 32, was convicted July 11, 2019, on five counts of the indictment against him: Count 1 – distribution of heroin; Count 2 – possession of a firearm in furtherance of his heroin distribution; Count 3 – witness tampering; Count 4 – conspiracy to commit witness tampering; and Count 5 – unlawful possession of a firearm by a convicted felon. Figaro was convicted following a one-week trial before U.S. District Judge Renée Marie Bumb in Camden federal court. The jury deliberated less than three hours before returning the guilty verdicts.

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

On Jan. 10, 2017, law enforcement officers from the Atlantic City Child Exploitation Task Force executed a state search warrant on Figaro’s hotel room in Atlantic City, New Jersey, where he had been staying off and on for at least a year. Officers recovered Figaro’s cell phone and a safe, containing a Jennings .22 caliber pistol loaded with five rounds, including one in the chamber, 119 individually packaged bags of heroin and various items used for packaging drugs for distribution, including additional bags, a digital scale, razor blades and a straw. Figaro’s fingerprints were found on the safe and his DNA was detected on the pistol and a cap, which had been in the safe.  

Figaro’s phone contained additional evidence of drug trafficking and firearm possession, including text messages offering heroin for sale and describing how he earned his living:  “my occupation is drug dealership;” and “I’m a dealer, not a pimp, not law, a street hustler.”

Figaro sent messages to a potential witness, calling the witness a “rat” and a “snitch” on Facebook, and later attempting to persuade the witness not to testify against him by feigning affection and promising to love and care for the witness.

The counts on which Figaro was convicted carry the following maximum sentences:  Count 1 – 20 years in prison; Count 2 – life in prison, with a five-year mandatory minimum sentence consecutive to any other sentence; Count 3 – life in prison; Count 4 – life in prison; and Count 5 – 10 years in prison in prison.  Figaro faces additional penalties, including fines of up to $1 million on Count 1, and up to $250,000 on each of Counts 2-5. Sentencing is scheduled for Oct. 14, 2019.

U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark; the Atlantic County Prosecutor’s Office, under the direction of Prosecutor Damon Tyner; the Atlantic County Sheriff’s Office, under the direction of Sheriff Eric Scheffler; and the N.J. Department of Human Services Police, under the direction of Commissioner Carole Johnson, with the investigation leading to the guilty verdict.

The government is represented by Assistant U.S. Attorneys Diana Vondra Carrig and Kristen M. Harberg of the Camden office.

NEWARK, N.J. – A Newark man who negotiated the sale of 17 firearms over a five-month period was sentenced today to 120 months in prison for possessing a firearm as a previously convicted felon, U.S. Attorney Craig Carpenito announced.

Reginald Moultrie, 50, previously pleaded guilty before U.S. District Claire C. Cecchi to an information charging him with possessing a firearm as a previously convicted felon. Judge Cecchi imposed the sentence today in Newark federal court.  

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

On July 20, 2017, Moultrie, who had at least one prior felony conviction in Essex County Superior Court, possessed an assault rifle capable of accepting a large capacity magazine. As part of the plea agreement, Moultrie also acknowledged that between May 1, 2017, and Sept. 30, 2017, he negotiated the sale of 17 firearms. Moultrie’s nephew, Richard Lowman, previously pleaded guilty to conspiracy to engage in the unlicensed business of dealing in firearms and is awaiting sentencing. 

In addition to the prison term, Judge Cecchi sentenced Moultrie to three years of supervised release. 

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. He also thanked officers from the Newark Police Department, under the direction of Department of Public Safety Director Anthony F. Ambrose, for their assistance. 

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

NEWARK, N.J. – A Middlesex County, New Jersey, man pleaded guilty today in connection with his role in a phony check scheme that resulted in the theft of over $2 million in merchandise from multiple home improvement stores throughout the country, U.S. Attorney Craig Carpenito announced. 

John Muyeka, 44, of Sayreville, New Jersey, pleaded guilty to a superseding information charging him with one count of misprision of a felony before U.S. District Judge Katharine S. Hayden in Newark federal court. 

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

Starting in December 2013 and continuing through February 2017, Muyeka and other conspirators agreed to obtain merchandise or store credit from home improvement stores in locations along the eastern United States, including New Jersey, by purchasing items with fraudulent checks.

The individuals entered home improvement and other retail stores and gathered several high-value items like air conditioners or hardwood flooring. They then typically “purchased” the items either by handing a cashier a fraudulent check with a phony name but authentic account and routing numbers, or by pretending to be an authorized signatory on a store credit account that the individuals had previously opened with a phony check.

During some of the transactions, the conspirators displayed fake driver’s licenses that had been created by Muyeka, which either duplicated the phony name imprinted on the fraudulent check they presented for payment or matched the name of an authorized signatory on a store credit account that they had previously opened.

In total, the conspirators allegedly stole over $2 million in merchandise from various retailers in New Jersey, New York, Pennsylvania, Delaware, North Carolina, Georgia, Virginia, Connecticut, Massachusetts, and South Carolina.

The count of misprision carries a maximum potential penalty of three years in prison and a $250,000 fine. Sentencing is scheduled for Oct. 15, 2019.

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 of the U.S. Attorney’s Office, District of New Jersey, with the investigation. He also thanked the Union Township Police Department, the Holmdel Police Department, the Passaic County Prosecutor's Office, the Totowa Police Department, and the Monroe Township Police Department for their assistance.

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