District of New Jersey

NEWARK, N.J. – A doctor based in Gainesville, Florida, was charged with conspiracy to commit health care fraud for ordering genetic tests for patients he never saw or treated, U.S. Attorney Craig Carpenito announced today.

Matthew S. Ellis, 53, of Gainesville, Florida, is charged by complaint with one count of conspiracy to commit health care fraud. Ellis made his initial appearance today before U.S. Magistrate Judge Mark Falk in Newark federal court and was released on $250,000 unsecured bond.

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

Ellis served as the chief medical officer for Ark Laboratory Network LLC, a company that purported to operate a network of laboratories that facilitated genetic testing. Two conspirators who operated Ark, Edward Kostishion, 59, and Kacey Plaisance, 37, both of Florida, were each charged by complaint on Jan. 15, 2019, with one count of conspiracy to commit health care fraud.

In October 2018, Kostishion and Plaisance contacted a clinical laboratory in New Jersey and proposed sending the laboratory 10 DNA swabs for genetic tests in return for approximately 50 percent of the total Medicare payments the laboratory received as a result of the tests. Kostishion later sent 10 test orders to the laboratory that listed Ellis as the “Ordering Physician” and contained a certification from Ellis that the tests were medically reasonable and necessary. The test requests contained fraudulent information regarding medical histories and conditions, and falsely represented that Ellis provided the patients with information regarding genetic testing.

One of the test requests, relating to “Patient 1,” indicated that Patient 1 had a personal history of breast cancer at age 44, a prerequisite for Medicare coverage of the particular test requested.  However, on Nov. 29, 2018, Patient 1 confirmed to law enforcement officials that the information on the test request was false; Patient 1 never had cancer and never told anyone about having cancer. Patient 1 also stated that Patient 1 submitted to the DNA swab after seeing an advertisement on Facebook that offered a $100 gift card for people interested in genetic testing.  Patient 1 stated that the DNA swab was not taken at a medical office, but rather in a “plain old office building” and that “some random guy” took the swab. Patient 1 confirmed never seeing or speaking to a treating physician about the genetic testing, and never saw or spoke to Ellis, the ordering physician listed on the test request. 

Ellis practices medicine in Florida, but Patient 1 was located in Oklahoma. All 10 of the patients in the test requests were located in Oklahoma, Arizona, Tennessee, or Mississippi. None of the patients were located in Florida. Additional investigation revealed that Ellis was not licensed to practice medicine in Oklahoma.  

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

U.S. Attorney Carpenito credited the U.S. Department of Health and Human Services, Office of Inspector General, under the direction of Special Agent in Charge Scott Lampert; and special agents of the U.S. Attorney’s Office for the District of New Jersey, with the investigation leading to today’s charges.

The government is represented by Assistant U.S. Attorney Bernard J. Cooney of the Health Care and Government Fraud Unit of the U.S. Attorney’s Office in Newark.

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

NEWARK, N.J. – An Indian national was sentenced today to 12 months and one day in prison for his role in an international conspiracy to smuggle foreign nationals into the United States via commercial airline flights, New Jersey U.S. Attorney Craig Carpenito announced.

Bhavin Patel, 39, of India, previously pleaded guilty before U.S. District Judge John M. Vazquez to a superseding information charging him with conspiracy to smuggle foreign nationals into the United States for private financial gain. Judge Vazquez imposed the sentence today in Newark federal court.

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

Agents for the Department of Homeland Security, Homeland Security Investigations (HSI) received information that a smuggling operation run by Patel was attempting to find methods to bring foreign nationals from India into the United States. The investigation revealed that the smuggling organization recruited Indian nationals and others to pay fees in exchange for passage to the United States.

Beginning in October 2013, an undercover law enforcement officer posing as a smuggler began meeting with Patel in Bangkok, Thailand. Patel told the undercover law enforcement officer that he wanted to smuggle Indian nationals into the United States. On three different occasions, Patel or his conspirator transported the Indian nationals to an airport in Thailand, at which point the undercover law enforcement officer would presumably use his contacts to smuggle them into the United States via commercial airline flights. Patel agreed to wire down payments for each individual to be smuggled into the United States and to pay a balance of tens of thousands of dollars for each individual once the foreign nationals arrived in the United States.

Over the ensuing months, Patel arranged for six Indian nationals to be brought to Thailand for smuggling into the United States via Newark Liberty International Airport. Patel was arrested on Dec. 7, 2018, upon his arrival at Newark.

In addition to the prison term, Judge Vazquez sentenced Patel to one year of supervised release. 

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

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

NEWARK, N.J. – Four men have been indicted for carrying out a scheme to use phony information and simultaneous loan applications at multiple banks to fraudulently obtain home equity lines of credit (HELOCs), U.S. Attorney Craig Carpenito announced.

Jorge Flores, 48, of Oakdale, New York; Joseph A. Gonzalez, 45, of Henderson, Nevada; and Jose L. Piedrahita, 57, and Yorce Yotagri, 52, both of Freeport, New York; are each charged by indictment with one count of conspiracy to commit bank fraud. Flores and Gonzalez are also charged with two substantive counts of bank fraud. Yotagri was arraigned July 8, 2019, before U.S. District Judge John Michael Vazquez in Newark federal court. Flores and Piedrahita remain at large. Gonzalez will be arraigned at a date to be determined.

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

From 2010 through 2018, Flores and Simon Curanaj, a real estate broker in the Bronx who has previously pleaded guilty and is awaiting sentencing, ran a mortgage fraud scheme in which they applied for more than $9 million in HELOCs from banks on residential properties in New Jersey and New York.

For instance, Gonzalez and Flores used a property in Jersey City, New Jersey, as part of the scheme. Gonzalez had been allowed to live at the property by the owner in exchange for management services, but neither he nor Flores owned the property. Gonzalez also recruited an individual with good credit to act as a straw buyer (Individual 1). Later, unbeknownst to the owner of the property, a “quitclaim” deed – a deed which contains no warranties of title – was prepared transferring the property to Individual 1. The signatures on the deed were forged.

Gonzalez and Flores then applied for two HELOCs from multiple banks using the Jersey City property as collateral in Individual 1’s name. They concealed the fact that the property offered as collateral was either already subject to senior liens that had not yet been recorded, or that the same property was offered as collateral for a line of credit from another lender. The applications also contained false information concerning Individual1’s income, which was stated to be higher than his actual income. At the time the applications were made, the value of the property was less than the amount of the HELOC loans for which Gonzalez and Flores applied.

The victim banks eventually issued loans to Individual 1 in excess of $500,000. After the victim banks funded the HELOCs and deposited money into Individual 1’s bank account, Individual 1 disbursed almost all of it to Gonzalez, Flores, and others. Gonzalez used $43,000 of the illicit proceeds to buy a luxury car. Individual 1 eventually defaulted on both HELOC loans.

In another example, Flores, Piedrahita, and Yotagri used a property in Freeport, New York, to carry out a similar scheme.

The conspiracy to commit bank fraud and substantive bank fraud counts carry a maximum potential penalty of 30 years in prison, a fine of $1 million or twice the gross pecuniary gain to the defendants or twice the gross pecuniary loss to others, whichever is greater.

U.S. Attorney Carpenito credited special agents of the U.S. Federal Housing Finance Agency, Office of Inspector General, under the direction of Special Agent in Charge Robert Manchak; and special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, with the investigation leading to the charges.

The government is represented by Assistant U.S. Attorney Jason S. Gould of the U.S. Attorney’s Criminal Division in Newark and Special Assistant U.S. Attorney Kevin DiGregory of the FHFA, Office of the Inspector General.

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

NEWARK, N.J. – A Bergen County, New Jersey, man was sentenced today to 60 months in prison for distributing images of child sexual abuse, U.S. Attorney Craig Carpenito announced.

Barry Goldstein, 46, of Bergenfield, New Jersey, previously pleaded guilty before U.S. District Judge Madeline Cox Arleo to an information charging him with one count of distribution of images of child sexual abuse. Judge Arleo imposed the sentence today in Newark federal court.

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

From May 2018 through August 2018, an undercover law enforcement officer (the “UC”) communicated over an instant messaging mobile application (the “IM App”) with Goldstein.  The IM App allows users to transmit and receive content after users register a username.  Goldstein maintained an account on the IM App, which was accessed from Internet Protocol addresses associated with Goldstein’s home. 

In May and June 2018, after engaging in explicit conversations with the UC regarding the sexual abuse of children, Goldstein used his account on the IM App to share with the UC multiple files depicting child sexual abuse. On Aug. 29, 2018, law enforcement officers searched Goldstein’s residence, interviewed Goldstein and arrested him.    

In addition to the prison term, Judge Arleo sentenced Goldstein to 15 years of supervised release.

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

The government is represented by Executive Assistant U.S. Attorney Zach Intrater of the U.S. Attorney’s Office in Newark.

NEWARK, N.J. – A Middlesex County, New Jersey, husband and wife were indicted today in connection with a scheme to market and distribute misbranded drugs and unapproved new drugs and manufacture drugs in an unregistered facility, U.S. Attorney Craig Carpenito announced.

Keith Kovaleski, 55, and Sylvia Kovaleski, 41, of South Amboy, New Jersey, each were charged with one count of conspiring to distribute and cause the receipt and delivery of misbranded drugs and unapproved new drugs, and to impede the functions of the U.S. Food and Drug Administration (FDA) and U.S. Department of Health and Human Services (HHS), 10 counts of introducing misbranded drugs into interstate commerce, four counts of introducing unapproved new drugs into interstate commerce, and one count of manufacturing drugs without registering with the secretary of HHS. In January 2019, Keith Kovaleski was charged in a federal complaint with conspiracy and was released on bail. Both defendants will be arraigned at a date to be determined.   

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

The FDA is responsible for enforcing the Federal Food, Drug, and Cosmetic Act (FDCA), a law intended to assure that drugs are safe, effective, and bear accurate labeling containing all required information. The FDA regulates the manufacture, labeling, and distribution of all drugs shipped or received in interstate commerce.

From May 2014 to January 2019, the Kovaleskis owned and operated AA Peptide LLC, a/k/a All American Peptide (AAP). AAP used its website to market and distribute substances primarily used by bodybuilders and others engaged in weight training to enhance performance and mitigate the side effects of performance-enhancing substances.   

The AAP website included a bogus legal disclaimer that its products were intended for laboratory research use only, and not as drugs or food. The Kovaleskis employed the bogus “research chemicals” disclaimer to conceal that they and others were distributing misbranded drugs and unapproved new drugs for use by their customers. 

The Kovaleskis, though AAP, sold products including: (1) prescription drugs, such as tadalafil, the active ingredient in Cialis; (2) SARMS, used by body-builders as an alternative to steroids; (3) peptides, also used as performance-enhancing substances; and (4) other drugs that were not peptides or SARMS, and had not been approved for human use, for example, clenbuterol, a drug sold in foreign markets but not approved by the FDA. The Kovaleskis failed to provide adequate directions for use for these products, such as frequency of administration and other dosage information. 

The Kovaleskis used their South Amboy basement as a manufacturing facility to make and label AAP products, including homemade capsules containing baking soda and tadalafil.  The Kovaleskis sold tadalafil capsules that contained significantly higher dosages of the active ingredient than the highest recommended dosage.  

The Kovaleskis earned more $2.5 million through the sale of misbranded and unapproved new drugs.

The conspiracy charge carries a maximum potential penalty of up to five years in prison.  Each count of introduction of misbranded drugs in interstate commerce, introduction of unapproved new drugs in interstate commerce, and operating an unregistered drug manufacturing facility carries a maximum potential penalty of three years in prison. Each charge also carries a maximum potential fine of up to $250,000 or twice the gross pecuniary gain or loss. 

U.S. Attorney Craig Carpenito credited special agents of the Food and Drug Administration, Office of Criminal Investigations, New York Field Office, under the direction of Special Agent in Charge Jeffrey J. Ebersole,; special agents of the Amtrak Office of Inspector General, under the direction of Special Agent in Charge Michael Waters; and postal inspectors with the U.S. Postal Inspection Service, under the direction of Inspector in Charge James Buthorn, Newark Division, with the investigation leading to today’s indictment. 

The government is represented by Assistant U.S. Attorneys Karen D. Stringer and Cari Fais, of the Special Prosecutions Division.

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

NEWARK, N.J. – A Massachusetts man was charged today with conspiring to sell five kilograms of heroin at the Jersey Gardens Mall in Elizabeth, New Jersey, U.S. Attorney Craig Carpenito announced.

Jose Manuel M. Ramos Lemus, 50, a citizen of Mexico residing in Boston, was charged by complaint with one count of conspiring to distribute and possessing with intent to distribute more than one kilogram of heroin. Lemus appeared today before U.S. Magistrate Judge Mark Falk in Newark federal court.

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

On July 6, 2019, Lemus arrived at the Jersey Gardens Mall to meet with a confidential source (CS). In the parking lot of the mall, Lemus assured the CS that he had 5 kilograms of China White heroin for distribution. After leaving the vehicle, Lemus returned with a duffle bag containing five kilograms of heroin and was arrested at the scene.

The count of conspiracy to distribute and possess with intent to distribute more than one kilogram of heroin carries a mandatory minimum term of 10 years in prison, a maximum penalty of life in prison, and a $10 million fine.

U.S. Attorney Carpenito credited the Drug Enforcement Administration’s Newark Division, under the direction of Special Agent in Charge Susan A. Gibson, 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.

 

TRENTON, N.J. – A day trader from Oak Park, California, was sentenced today to 18 months in prison for his role in a multi-year insider trading scheme that made over $3.9 million in illicit profits by exploiting material information in violation of confidentiality agreements, U.S. Attorney Craig Carpenito announced.

Ronald Chernin, 70, of Oak Park, California, previously pleaded guilty before U.S. District Judge Michael A. Shipp to an information charging him with one count of conspiracy to commit securities fraud and one count of securities fraud. Judge Shipp imposed the sentence today in Trenton federal court

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

Chernin and co-defendant Steven Costantin, 58, of Farmingdale, New Jersey, worked as day traders for Costantin’s brother-in-law, Steven Fishoff, 62, of Westlake Village, California. Between May 2010 and August 2013, Chernin, Costantin, and Fishoff, as well as a business associate referred to as “Trader A,” expressed interest in participating in numerous stock offerings by publicly traded companies.

Chernin, Costantin, and other members of the day trading operation falsely characterized their trading entities as legitimate, full-service financial management firms with as much as $150 million in assets under management, in order to increase the likelihood that the investment bankers would solicit them to participate in the stock offerings.

Before providing confidential information concerning the companies or the terms of the proposed sales, the investment bankers first required that Chernin, Costantin, Fishoff, Trader A, and their associated trading entities, enter into confidentiality, or “wall-crossing,” agreements, whereby they agreed not to disclose or trade on the inside information and were brought “over the wall” for the narrow purpose of determining whether to purchase the offered securities.

Instead, Chernin, Costantin, and Fishoff violated the confidentiality agreements by directly or indirectly tipping each other and others with the inside information concerning the stock offerings; short selling the issuers’ stock in anticipation of a drop in price when the stock offerings were disclosed to the public; and covering their short positions once the stock offerings were disclosed. Additionally, Fishoff tipped his friend, Paul Petrello, 57, of Boca Raton, Florida, and another conspirator, Joseph Spera.

By trading on the nonpublic information, Chernin, Costantin, and their conspirators gained more than $3.9 million in illicit profits over the course of the three-year scheme. Chernin and Costantin shared 50 percent of their profits with Fishoff.

In addition to the prison term, Judge Shipp sentenced Chernin to three years of supervised release and fined him $2,000.

Costantin previously pleaded guilty to his role in the scheme and was sentenced to one year in prison. Petrello previously pleaded guilty to his role in the scheme and was sentenced to three years of probation. Fishoff pleaded guilty to his role in the scheme and was sentenced to 30 months in prison. Spera pleaded guilty to his role in the scheme and was sentenced to one year of probation.

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 sentencing. He also thanked the U.S. Securities and Exchange Commission’s New York Regional Office, under the direction of Marc Berger.

The government is represented by Nicholas P. Grippo, Attorney in Charge of the U.S. Attorney’s Trenton Office; Sarah Devlin, Chief of the Office’s Asset Recovery and Money Laundering Unit (ARMLU), and Senior Trial Counsel Barbara Ward of the ARMLU.

The last of 12 defendants to be convicted for their roles in multi-state dog fighting conspiracies were sentenced yesterday in federal court in Trenton, New Jersey, the Department of Justice announced today.

• Justin Love, 39, of Sewell, New Jersey, was sentenced on July 3, 2019, to serve 54 months in prison. A jury had convicted Love of one felony count of conspiracy to violate the animal fighting prohibitions of the federal Animal Welfare Act, six felony counts of possessing a dog intended for use in an animal fighting venture, and two felony counts of purchasing and receiving a dog intended for use in an animal fighting venture.
• Robert A. Elliott, Sr., 50, of Millville, New Jersey, was sentenced on May 30, 2019, to serve 24 months in prison. A jury had convicted Elliott of one felony count of conspiracy to violate the animal fighting prohibitions of the federal Animal Welfare Act, and 12 felony counts of possessing a dog intended for use in an animal fighting venture.
• Dajwan Ware, 46, of Fort Wayne, Indiana, was sentenced on May 29, 2019, to serve 24 months in prison. A jury had convicted Ware of one felony count of conspiracy to violate the animal fighting prohibitions of the federal Animal Welfare Act.

“Our justice system will not tolerate the torment and death of animals in the fighting ring, as the sentencings in this case demonstrate,” said Assistant Attorney General Jeffrey Bossert Clark for the Justice Department’s Environment and Natural Resources Division. “Although the one chapter represented by this landmark series of cases has now closed, we will continue to place a high priority on pursuing and prosecuting similar illegal animal fighting ventures across the country.”

“Dog fighting exacts a steep toll on animals, local animal shelters, charitable humane organizations, and the taxpayers of New Jersey,” said U.S. Attorney Craig Carpenito for the District of New Jersey. “We applaud our local and federal partners who worked so tirelessly to investigate this case and bring the offenders to justice. The message from today’s sentencing hearing is simple: don’t fight dogs in New Jersey, or elsewhere, if you want to avoid a lengthy prison sentence.”

“The provisions of the Animal Welfare Act were designed to protect animals from being used in illegal fighting ventures, which often entail other forms of criminal activity involving drugs, firearms and gambling,” Special Agent in Charge Bethanne M. Dinkins of the U.S. Department of Agriculture-Office of Inspector General said. “Together with the Department of Justice, animal fighting is an investigative priority for USDA-OIG, and we will work with our law enforcement partners to investigate and assist in the criminal prosecution of those who participate in animal fighting ventures.”

“Animal cruelty is a heinous crime that deserves our ultimate condemnation and serious legal consequences for those who engage in it for ‘sport’ and/or profit,” said Brian Michaels, Special Agent in Charge, Homeland Security Investigations, Newark. “As an agency, we are proud to work with our partners to identify, investigate and assist our partners to rout out those who engage in this despicable, inhumane, and illegal practice.”

According to trial evidence and court documents filed in connection with the cases, the defendants and their associates regularly fought dogs – including regularly to the death – and repeatedly trafficked in dogs with other dog fighters across several states so that those dogs could be used in dog fights. They also maintained significant numbers of fighting dogs and substantial dog fighting equipment such as dog treadmills, intravenous drug bags and lines, and “breeding stands” used to immobilize female dogs. At Justin Love’s residence, canine blood was found on the floor, walls, and ceiling of the basement, and Love had tried to set up a “class” for dog fighters to practice administering I.V. fluids to injured dogs, using live dogs as their practice subjects. Another defendant who previously pleaded guilty admitted that following a fight, his dog died in his car on the way home.

Today’s sentencing brings to a close Operation Grand Champion, a multi-jurisdictional federal dog fighting investigation which commenced in 2015 and resulted in the convictions of 12 defendants in four federal districts. The 12 defendants were sentenced to a total of 315 months in prison. The phrase “Grand Champion” is used by dog fighters to refer to a dog with more than five dog fighting “victories.” As a result of the investigation, 113 dogs were rescued and either surrendered or forfeited to the government.

Judge Peter G. Sheridan presided over the trial and imposed the sentences.

The government was represented in the Trenton proceedings by Trial Attorney Ethan Eddy of the Justice Department’s Environmental Crimes Section and Assistant U.S. Attorney Kathleen O’Leary of the District of New Jersey. The case was investigated by the U.S. Department of Agriculture – Office of Inspector General, the U.S. Department of Homeland Security – Homeland Security Investigations, and the Federal Bureau of Investigation.

TRENTON, N.J. – The last of 12 defendants to be convicted for their roles in multi-state dog fighting conspiracies was sentenced today, U.S. Attorney Craig Carpenito of the District of New Jersey and Assistant Attorney General Jeffrey Bossert Clark of the Justice Department’s Environment and Natural Resources Division announced.

Justin Love, 39, of Sewell, New Jersey, was sentenced to 54 months in prison. Love was previously convicted of one count of conspiracy to violate the animal fighting prohibitions of the federal Animal Welfare Act, six counts of possessing a dog intended for use in an animal fighting venture, and two counts of purchasing and receiving a dog intended for use in an animal fighting venture. He was convicted following a trial before U.S. District Judge Peter G. Sheridan, who imposed the sentence today in Trenton federal court.

Robert A. Elliott Sr., 50, of Millville, New Jersey, and Dajwan Ware, 46, of Fort Wayne, Indiana, were each sentenced in May 2019 to two years in prison. Both had been convicted of violating the Animal Welfare Act.

Today’s sentencing brings to a close Operation Grand Champion, a multi-jurisdictional federal dog fighting investigation which commenced in 2015 and resulted in the convictions of 12 defendants in four federal districts. The phrase “Grand Champion” is used by dog fighters to refer to a dog with more than five dog fighting “victories.” As a result of the investigation, 113 dogs were rescued and either surrendered or forfeited to the government

“Dog fighting exacts a steep toll on animals, local animal shelters, charitable humane organizations, and the taxpayers of New Jersey,” U.S. Attorney Carpenito said. “We applaud our local and federal partners who worked so tirelessly to investigate this case and bring the offenders to justice.”

 “Our justice system will not tolerate the torment and death of animals in the fighting ring, as the sentencings in this case demonstrate,” Assistant Attorney General Clark said. “Although this landmark case is over, we continue to place a high priority on pursuing and prosecuting illegal animal fighting ventures across the country.”

According to documents filed in these cases, statements made in court and the evidence at trial:

The defendants and their associates regularly fought dogs – including regularly to the death – and repeatedly trafficked in dogs with other dog fighters across several states so that those dogs could be used in dog fights. They also maintained significant numbers of fighting dogs and substantial dog fighting equipment such as dog treadmills, intravenous drug bags and lines, and “breeding stands” used to immobilize female dogs. At Love’s residence, canine blood was found on the floor, walls, and ceiling of the basement, and Love had tried to set up a “class” for dog fighters to practice administering I.V. fluids to injured dogs, using live dogs as their practice subjects. Another defendant who previously pleaded guilty admitted that following a fight, his dog died in his car on the way home.

In addition to the prison term, Judge Sheridan sentenced Love to three years of supervised release and fined him $9,000.

The government was represented in the Trenton proceedings by Assistant U.S. Attorney Kathleen O’Leary of the District of New Jersey and Trial Attorney Ethan Eddy of the Justice Department’s Environmental Crimes Section. The case was investigated by the U.S. Department of Agriculture – Office of Inspector General, the U.S. Department of Homeland Security – Homeland Security Investigations, and the FBI.

TRENTON, N.J. – A Middlesex County, New Jersey, man was sentenced today to six months home confinement and four years’ probation for illegally smuggling wildlife into New Jersey, U.S. Attorney Craig Carpenito announced.

Wlodzimie Lapkiewicz, 30, a/k/a “Wlodek Lapkiewicz,” of Metuchen, New Jersey, previously pleaded guilty before U.S. District Judge Peter G. Sheridan to an information charging him with one count of smuggling wildlife. Judge Sheridan imposed the sentence today in Trenton federal court.

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

Between July 2015 and July 2018, Lapkiewicz illegally imported and exported scorpions, giant millipedes, and other invertebrate species, conduct which Lapkiewicz acknowledged is commonly referred to as “brown-boxing.” On multiple occasions, Lapkiewicz imported Emperor and Dictator Scorpions, both of which are listed in the Convention on International Trade in Endangered Species (CITES) treaty as protected species. Postal inspectors learned of Lapkiewicz’s illegal imports after live scorpions and giant millipedes escaped from an international parcel while in transit to Lapkiewicz in July 2015. The investigation revealed that Lapkiewicz participated and assisted others in intentionally mislabeling parcels of live wildlife to avoid detection. The investigation also revealed that Lapkiewicz utilized social media to arrange buyers for the scorpions, giant millipedes, and other invertebrates that he had illegally imported.

U.S. Attorney Carpenito credited special agents of the U.S. Fish and Wildlife Service, Office of Law Enforcement, under the direction of Special Agent in Charge Honora Gordon, with the investigation leading to these charges.

The government is represented by Special Assistant U.S. Attorney Shawn Barnes of the Criminal Division in Newark.

Defense counsel: David Holman Esq., Assistant Federal Public Defender, Newark

NEWARK, N.J. – Four executives of two information technology staffing companies have been arrested on charges of fraudulently using the H-1B visa program to gain an unfair advantage over competitors, U.S. Attorney Craig Carpenito announced today.

Vijay Mane, 39, of Princeton, New Jersey; Venkataramana Mannam, 47, of Edison, New Jersey; Fernando Silva, 53, of Princeton; and Sateesh Vemuri, 52, of San Jose, California, are each charged by complaint with one count of conspiracy to commit visa fraud.

Vemuri made his initial appearance July 1, 2019, before U.S. Magistrate Judge Steven C. Mannion in Newark federal court. Mannam and Silva appeared before U.S. Magistrate Judge Leda Dunn Wettre in Newark federal court on June 25, 2019; Mane appeared before Judge Wettre on June 27, 2019. All were released on $250,000 bond.

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

Mane, Mannam, and Vemuri controlled two IT staffing companies located in Middlesex County, New Jersey – Procure Professionals Inc. and Krypto IT Solutions Inc. Silva and Mannam also controlled another New Jersey staffing company, referred to in the complaint as “Client A.” The defendants used Procure and Krypto to recruit foreign nationals and sponsor them for H-1B visas, which allow recipients to live and work temporarily in the U.S. in positions requiring specialized skills. To expedite their visa applications, the defendants caused Procure and Krypto to file H-1B applications falsely asserting that the foreign worker/beneficiaries had already secured positions at Client A, when, in reality, no such positions existed. Instead, the defendants used these fraudulent applications to build a “bench” of job candidates already admitted to the United States, who could then be hired out immediately to client companies without the need to wait through the visa application process, giving the defendants an advantage over their competitors in the staffing industry.

The conspiracy charge carries a maximum potential penalty of five years in prison and a $250,000 fine.

U.S. Attorney Carpenito credited special agents of the U.S. Department of Homeland Security, Homeland Security Investigations (HSI), under the direction of Special Agent in Charge Brian Michael; U.S. Citizenship and Immigration Services, Newark Office of Fraud Detection and National Security; the USCIS National Benefits Center; 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 the charges.

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 defendants are presumed innocent unless and until proven guilty.

CAMDEN, N.J. – A health care foundation and two related companies have agreed to pay $1.1 million to resolve claims arising from their administration of federally funded community service grants, U.S. Attorneys Craig Carpenito, District of New Jersey, and William M. McSwain, Eastern District – Pennsylvania, announced today.

From 2012 until 2017, Our Lady of Lourdes Health Foundation and two related companies administered multiple grants funded through the Corporation for National and Community Service (CNCS)’s Senior Corps program. These included the Foster Grandparent Program, which places seniors in school and community settings to work with youth with exceptional needs, and the Senior Companion Program, which places seniors in community and residential settings to assist seniors who have difficulty with tasks of daily living. These programs provide small hourly stipends to the volunteers performing these services, who undergo training and must clear criminal history checks to ensure their suitability for the work.

From 2014 until 2017, Lourdes either failed to perform these criminal history checks or failed to keep records of doing so. As a result, 46 individuals were permitted to work on an FGP or SCP project without any documentation that they received one or more of the required criminal history checks. When a monitoring visit was scheduled in 2017, Lourdes employees cut-and-pasted other background checks in an attempt to conceal this failure from CNCS officials.

Lourdes’ employees – including two program supervisors – falsely completed time sheets showing program participants working hours that were impossible, because the locations at which they were purportedly working were closed.

When the United States commenced its formal investigation in 2017 and brought these issues to the attention of senior Lourdes management, Lourdes voluntarily relinquished the grants immediately and terminated all of the employees who had participated in the grant administration. Lourdes has actively cooperated with the United States since its senior management was advised of the issues in the grant programs. As part of this cooperation, it performed appropriate criminal history checks on all program participants and determined that all 46 individuals would have been permitted to participate in the programs had those checks been timely performed.

“Just as important as the work these volunteers do is the system that has been set up to ensure that they have been thoroughly vetted,” U.S. Attorney Carpenito said. “Whether they failed to keep accurate records of the results of these criminal background checks – or just failed to do them – the results were the same. Our Lady of Lourdes potentially put their clients’ safety at risk. And billing for no-show employees cannot be tolerated, especially when taxpayer dollars are being spent.”

“Criminal history checks are a critical protection for the vulnerable populations with whom Senior Companions and Foster Grandparents work,” U.S. Attorney McSwain said. “Strict compliance with the requirements for these essential safeguards is the surest way to be sure that predators do not gain access to potential victims. And every federal contractor, including community service organizations, is required to honestly and openly report the work that its employees perform. Every dollar spent on an hour that was not really worked is one that is not available to support other community service efforts.

“This fraud deprived school children and senior citizens of promised services and jeopardized their safety with bogus criminal history checks for the volunteers who served them,” CNCS’s Inspector General Deborah J. Jeffrey said. “We hope that the substantial penalties included in this settlement will deter other grantees from similar misconduct. We commend our partners at the Department of Justice for their outstanding efforts in pursuing fraud against national service programs.”

U.S. Attorneys Carpenito and McSwain praised Lourdes’ work in addressing the issues in these programs: “We appreciate the seriousness with which Lourdes senior management has taken this issue and the prompt, aggressive remedial actions that they took to prevent further harm to CNCS programs and potential harm to vulnerable communities. We hope this settlement will serve as a message to other senior managers to be vigilant in overseeing government-funded programs and to ensure that their employees do not attempt to conceal any non-compliance.”

This investigation was conducted jointly by the U.S. Attorney’s Offices for the District of New Jersey and the Eastern District of Pennsylvania, as well as the CNCS Office of Inspector General. Assistant U.S. Attorneys Jessica O’Neill of the District of New Jersey and Paul W. Kaufman and Veronica Finkelstein of the Eastern District of Pennsylvania handled the investigation and settlement.

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

19-189 

NEWARK, N.J. – An Essex County, New Jersey, man was convicted for his role in a scheme to steal victims’ personal information, use it to obtain replacement credit cards and then use the cards to purchase high-value items from retailers, U.S. Attorney Craig Carpenito announced today.

Richard Adebayo, 42, of East Orange, New Jersey, was convicted June 27, 2019, on all counts of an indictment charging him with one count of conspiracy to commit wire fraud, 14 counts of wire fraud and two counts of aggravated identity theft following a nine-day trial before Judge Madeline Cox Arleo in Newark federal court. The jury deliberated one day before returning the guilty verdicts.

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

Adebayo and Amos Peter Agbajaife, 41, of Newark, were originally charged by complaint on in September 2014 and indicted in January 2019. Adebayo was arrested in 2014 and Agbajaife remains at large.

From March 2014 to April 2014, Adebayo and Agbajaife fraudulently obtained personal identifying information, including dates of birth, Social Security numbers, and passwords, of credit card holders. They used the information to fraudulently obtain replacement credit cards in the victims’ names and then used the cards to purchase high-value items from retail stores.

Adebayo was carrying a laptop computer when he was arrested. A forensic analysis of the computer revealed the stolen identities, including names, Social Security numbers, dates of birth, addresses, bank account information, and credit card information of several victims. Law enforcement confirmed that more than $200,000 in fraudulent charges were incurred on the credit cards of the victims.

Each count of wire fraud and conspiracy to commit wire fraud carries a maximum potential penalty of 20 years in prison and a fine of up to $250,000, or twice the gain to the defendant or loss to another, whichever is greater. The counts of aggravated identity theft carries a mandatory term of two years in prison, which must run consecutively to any term of imprisonment imposed for other counts of the indictment. Sentencing is scheduled for Sept. 25, 2019.

U.S. Attorney Carpenito credited special agents of the U.S. Department of Homeland Security, Homeland Security Investigations (HSI), under the direction of Special Agent in Charge Brian Michael, with the investigation leading to conviction.

The government is represented by Assistant U.S. Attorneys Catherine Murphy and Jamel Semper of the U.S. Attorney’s Office Economic Crimes Unit in Newark.

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

Defense counsel: Christopher D. Adams Esq., Holmdel, New Jersey; and Tara Breslow-Testa Esq., Red Bank, New Jersey

CAMDEN, N.J. – A New York man today admitted selling dangerous designer drugs, fentanyl, and oxycodone over the internet, U.S. Attorney Craig Carpenito announced.

Shadab Chowdhury, 26, of Brooklyn, pleaded guilty before U.S. District Judge Noel L. Hillman in Camden federal court to an information charging him with eight counts of distributing and possessing with intent to distribute synthetic cannabinoids; one count of distributing and possessing with intent to distribute fentanyl; and one count of distributing and possessing with intent to distribute oxycodone. Chowdhury also acknowledged, as relevant conduct, his distribution of cyclopropyl fentanyl.

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

Chowdhury admitted that from January 2016 to July 2018, he used the internet to distribute synthetic cannabinoids, fentanyl, cyclropropyl fentanyl, and oxycodone. He solicited and serviced his customers through three websites, two email accounts, and text messages. His customers included undercover law enforcement officers located in New Jersey, as well as various individuals in New York, Kansas, North Carolina, South Dakota, West Virginia, Georgia, Ohio, Alaska, California, and Virginia.

Chowdhury arranged and coordinated shipments of synthetic cannabinoids, which he termed “fire” or “spice,” as well as shipments of fentanyl and oxycodone. He also prepared the drugs to make them potent and negotiated pricing on the drugs. To avoid law enforcement, Chowdhury deliberately misbranded the synthetic cannabinoids. He also referred to the oxycodone and fentanyl in code. He received payments for his drug shipments via credit card payments, Western Union, direct bank deposit, and cryptocurrency.

Each of the counts to which Chowdhury pleaded guilty carries a maximum potential penalty of 20 years in prison and a $1 million fine. As part of Chowdhury’s plea agreement, he will forfeit a large number of personal items that were seized from his home, including several computers, computer parts and other electronics that were involved in his crimes. Sentencing is scheduled for Oct. 4, 2019.

U.S. Attorney Craig Carpenito credited special agents with the Drug Enforcement Administration’s Tactical Diversion Squad in the Camden Resident Office, under the direction of Special Agent in Charge Susan Gibson, 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: Mitchell C. Elman Esq., Ozone Park, New York

CAMDEN, N.J. – Twenty-two people have been charged for their roles as members, associates, and suppliers of an Atlantic City, New Jersey-based drug-trafficking organization that distributed heroin throughout the area, U.S. Attorney Craig Carpenito announced today.

Nineteen defendants were arrested today, one defendant was in custody on previous state charges, and two defendants are not yet in custody. All of the defendants are charged by complaint with one count of conspiracy to distribute or possess with intent to distribute over one kilogram of heroin. The defendants arrested today are scheduled to appear this afternoon before U.S. Magistrate Judge Ann Marie Donio in Camden federal court. (See chart below.)

“The defendants charged today have been flooding the streets of Atlantic City and surrounding towns with heroin, often with tragic results,” U.S. Attorney Carpenito said. “Numerous deaths and overdoses have been linked to the ‘brands’ pushed by these drug traffickers. With our law enforcement partners, we are working to get these drugs, and the organizations that distribute them, off the streets of Atlantic City.”

“From international terrorists to street level drug dealers, the FBI is committed to keeping you safe,” FBI Special Agent-in-Charge Gregory W. Ehrie said. “Today's operation should serve as a warning to those thinking of filling the void created by the arrests - we aren’t finished. Our agents are dedicated and persistent. We will continue our efforts to free the community of deadly drugs and drug dealers. We will continue on our mission to protect the public.”

"This is a great day for Atlantic City, and a great day for Atlantic County," Atlantic City Police Chief Henry White Jr. said. "The dismantling of an organization that has brought sorrow and anguish to so many families through the distribution of deadly narcotics is a win for the community. Together, with our federal, state and local partners, we have showed those that wish to invade and flood our neighborhoods with deadly drugs that it will not be tolerated. We will continue to fight on behalf of the men, women and children of our respective communities." 

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

An authorized wiretap investigation revealed that from April of 2017 through June of 2019, the drug trafficking organization’s leader, Khalif Toombs, operated a massive drug distribution ring, utilizing multiple stash houses throughout Atlantic City and numerous drug couriers to re-distribute the heroin. Toombs and his associates coordinated their efforts through the use of phone calls, text messages, and social media. The investigation revealed that Toombs obtained his heroin from a supplier in Paterson, New Jersey, and used Atlantic City associates to make frequent trips to Paterson to obtain his resupply of heroin.

Through the course of the investigation, the FBI determined that Toombs and his associates were distributing multiple “stamps,” or brands, of heroin, including “AK-47,” “Apple,” “Fortnite,” “Rolex,” “Frank Lucas,” “Bentley,” “Pandora,” and “9 ½.” Between Jan. 1, 2017, and June 21, 2019, drugs with these stamps have accounted for 48 deaths and 84 non-fatal overdoses in New Jersey, according to the N.J. State Police Office of Drug Monitoring and Analysis.

The count of conspiracy to distribute or possess with intent to distribute more than one kilogram of heroin with which each defendant is charged is punishable by a minimum of 10 years in prison and a maximum of life in prison.

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

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

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 considered innocent unless and until proven guilty.

DEFENDANTS

NAME

AGE

RESIDENCE

Khalif Toombs

29

Pleasantville, N.J.

Wilbert Toombs

63

Atlantic City

*Blaine Dorsey

54

Atlantic City

Dean Johnson

39

Atlantic City

Mayda Hernandez

50

Atlantic City

Joseph Aversa

37

Ventnor, N.J.

David Ramirez

23

Mays Landing, N.J.

James Blackwell

54

Atlantic City

Khalif Davis

33

Mays Landing

Wayne Burnside

28

Atlantic City

Jeremy Carll

47

Mays Landing

Sarah Taliaferro

26

Brigantine, N.J.

Philip Surace

32

Atlantic City

Valarie Lamar

59

Atlantic City

Karon Carey

35

Atlantic City

*Thomas Randall

25

Mays Landing.

Nasir Brown

26

Somers Point

Tieyesha Tucker

25

Atlantic City

Jamal Marshall

32

Atlantic City

**Quadir Stanley

30

Atlantic City

Tyjuan Demarest

39

Elmwood Park, N.J.

Terryn Kelsey

29

Atlantic City

*Denotes at large
**Denotes in state custody

NEWARK, N.J. – A Hudson County, New Jersey, man has been indicted for his role in running a large-scale mortgage fraud scheme that involved properties in Jersey City, Union, and elsewhere in New Jersey and caused losses of millions of dollars, U.S. Attorney Craig Carpenito announced today.

Anthony Garvin, 49, of Jersey City, was charged in a superseding indictment returned June 25, 2019, with one count of bank fraud conspiracy and five counts of bank fraud. Garvin was originally indicted on one count of bank fraud conspiracy and one count of bank fraud on Jan. 11, 2019.

According to the documents filed in this case:

From January 2011 through November 2017, Garvin and others engineered fraudulent short sale “flips” of various New Jersey properties with mortgages that were in default, and also fraudulently obtained numerous home equity lines of credit, or “HELOC” loans, using fraudulent documents and information.

The conspirators allegedly arranged simultaneous fraudulent transactions on the same target property. In the first transaction, which involved the sale by the current owner, the conspirators convinced the financial institution holding the mortgage to accept the sale of the target property at a loss, usually to a buyer who was secretly a conspirator or an entity controlled by the conspiracy.

In the second transaction, the conspirators flipped the same target property from the first buyer to a second buyer, who typically obtained a mortgage from another financial institution using false loan applications, pay stubs, bank account statements and title reports provided by members of the conspiracy. The second transaction frequently closed for significantly more or even double the price of the first transaction.

Garvin and others allegedly rigged the short sale process at each step to maximize the difference in price between the two transactions and keep the victim financial institutions from detecting the fraud. The conspirators used various kinds of phony documents and misrepresentations, including generating false pre-approval letters from a New Jersey corporation controlled by a conspirator and generating phony deeds that backdated the closing date of the first transactions.

To obtain HELOC loans, the conspirators allegedly submitted loan applications in the name of straw borrowers, who did not in fact reside at the subject properties, and used false and fraudulent information – including false pay stubs and tax information – to make it appear as though the straw borrowers made more money than they actually did. The conspirators frequently applied for multiple HELOC loans on the same property nearly contemporaneously, withholding from each lender the existence of other applications.

The conspirators then disbursed the funds received from financial institutions – which totaled millions of dollars – into various accounts they controlled to conceal their illegal activities and split the profits.

The count of conspiracy to commit bank fraud and each substantive count of bank fraud are each punishable by a maximum potential penalty of 30 years in prison and a $1 million fine.

U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, postal inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge James Buthorn, and special agents of the Federal Housing Finance Agency (FHFA) – Office of Inspector General, under the direction of Special Agent in Charge Steven Perez in Newark, with the investigation leading to the superseding indictment.

The government is represented by Assistant U.S. Attorneys David Feder and Zach Intrater of the U.S. Attorney’s Office in Newark.

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

Defense counsel: Murdoch Walker II Esq., Atlanta, Georgia; Charles D. Dawkins Jr. Esq., Elizabeth, New Jersey

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

Anastacia Thomas, 26, of Fayetteville, North Carolina, pleaded guilty before U.S. District Judge Joseph Rodriguez in Camden federal court to an information charging her with conspiring to illegally traffic firearms.

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

On Jan. 25, 2018, law enforcement officers conducted a traffic stop in Deptford, New Jersey, of a car registered to Anthony Doyle, 28, also of Fayetteville, North Carolina. Doyle was riding as the front seat passenger while Thomas was driving. The 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 the four handguns in the backpack on Jan. 22, 2018, from a pawnshop in Jonesboro, Georgia. Thomas had purchased several additional firearms from that same pawnshop over the course of multiple visits, and Doyle accompanied Thomas to the pawnshop on at least two of those visits.

Law enforcement officers learned that from Nov. 30, 2017, to Jan. 25, 2018, Doyle and Thomas conspired and worked together to engage in the business of dealing in firearms without a license. Thomas was responsible for purchasing firearms from federally licensed firearms dealers; Doyle used social media to advertise firearms for sale, negotiate pricing, and arrange transactions. Doyle discussed the various firearm transactions in great detail over the course of hundreds of pages of online messages that were analyzed by law enforcement officers.

The charge of conspiring to engage in gun trafficking carries a maximum potential penalty of five years in prison and a $250,000 fine. Sentencing is scheduled for Oct. 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.

Charges against Doyle remain pending. Those charges are merely accusations, and he is presumed innocent unless and until proven guilty.

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

A doctor who practiced in New Jersey and Pennsylvania was charged in an indictment unsealed today for his alleged participation in a scheme to receive bribes and kickbacks from a pharmaceutical company in exchange for prescribing large volumes of a powerful fentanyl narcotic.

Assistant Attorney 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 Gregory W. Ehrie of the FBI’s Newark Field Office, Special Agent in Charge Scott J. Lampert of the  U.S. Department of Health and Human Services Office of the Inspector General’s (HHS-OIG) Office of Investigations—New York Region and Special Agent in Charge Susan A. Gibson of the Drug Enforcement Administration’s (DEA) New Jersey Division made the announcement.

Kenneth Sun, M.D., 58, of Easton, Pennsylvania, was charged with one count of conspiracy to defraud the United States and to pay and receive health care kickbacks and four counts of receiving health care kickbacks.  Sun was arrested this morning and appeared this afternoon before U.S. Magistrate Judge Leda Dunn Wettre of the District of New Jersey.  A trial date has not been set.

According to the indictment, Sun owned and maintained a pain management medical practice named Progressive Pain Solutions LLC, which had two locations:  one in Phillipsburg, New Jersey, the other in Wind Gap, Pennsylvania.  The indictment alleges that Sun solicited and received more than $140,000 in bribes and kickbacks from Insys Therapeutics, a pharmaceutical company based in Arizona, in exchange for prescribing more than 28 million micrograms of Subsys, a powerful opioid narcotic designed to rapidly enter a patient’s bloodstream upon being sprayed under the tongue.  Subsys, which is sold by Insys Therapeutics and costs thousands of dollars for a month’s supply, contains fentanyl, a synthetic opioid pain reliever which is approximately 50 to 100 times more potent than morphine.  The U.S. Food and Drug Administration approved Subsys solely for the “management of breakthrough pain in cancer patients who are already receiving and who are tolerant to around the clock therapy for their underlying persistent cancer pain”.  The indictment alleges that Sun prescribed Subsys to patients for whom Subsys was medically unnecessary, not eligible for insurance reimbursement and/or not desired. 

The indictment further alleges that the bribes and kickbacks that Sun received from Insys Therapeutics in exchange for prescribing Subsys were disguised as “honoraria” for educational presentations regarding Subsys that Sun purportedly provided to licensed practitioners.  In reality, the indictment alleges, these presentations were a sham:  they lacked the appropriate audience of licensed practitioners, there was no presentation about Subsys whatsoever, the same individuals attended over and over again and Sun did not attend some of the presentations at all.  Sun caused Medicare to pay more than $847,000 for Subsys prescriptions that were medically unnecessary, procured through the payment of kickbacks and bribes, and not eligible for Medicare reimbursement, the indictment alleges. 

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

This case was investigated by the FBI, HHS-OIG and the DEA.  Trial Attorney Rebecca Yuan of the Criminal Division’s Fraud Section is prosecuting the case.

The Fraud Section leads the Medicare Fraud Strike Force, which is part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country.  Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 14 strike forces operating in 23 districts, has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than $14 billion.  In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.

NEWARK, N.J. – A former candidate for the Hoboken City Council was convicted today of conspiring to promote a voter bribery scheme by use of the mail, U.S. Attorney Craig Carpenito announced. 

Francis Raia, 67, of Hoboken, New Jersey, was a candidate for Hoboken City Council in 2013. He was convicted of one count of conspiracy to violate the federal Travel Act for causing the mails to be used in aid of voter bribery, contrary to New Jersey state law, during that election. The jury deliberated for one day, following a five-day trial before Senior U.S. District Judge William J. Martini in Newark federal court.

“The defendant in this case tried to rig a Hoboken municipal election by voting multiple times, both for himself and for a ballot question that he supported,” U.S. Attorney Carpenito said. “He did so by deploying his loyal foot soldiers to buy votes from people who he thought were in need of money, and then creating a phony cover story to conceal his tracks. Fortunately, neither federal law enforcement nor the jury was fooled. Today’s verdict underscores this Office’s continued dedication to uncovering, investigating and prosecuting acts of corruption at every level of New Jersey government.”

“The health of our democracy relies on the integrity of our electoral system,” FBI-Newark Special Agent-in-Charge Gregory W. Ehrie said. “When people use corrupt methods to work around that system, it deprives every constituent of their right to be heard through their vote.”

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

Under New Jersey law, registered voters are permitted to cast a ballot by mail rather than in person. To receive a mail-in ballot, voters must complete and submit to their County Clerk’s Office an Application for Vote By Mail Ballot (VBM Application). After the VBM Application is processed by the County Clerk’s Office, voters receive a mail-in ballot. 

From October 2013 through November 2013, Raia instructed Dio Braxton, Matt Calicchio, Lizaida Camis, and other conspirators who worked for his campaign, to pay certain Hoboken voters $50 if those voters applied for and cast mail-in ballots in the November 2013 Hoboken municipal election. The conspirators provided these voters with VBM Applications and then delivered or mailed the completed VBM Applications to the Hudson County Clerk’s office.

After the mail-in ballots were delivered to the voters, at Raia’s direction, the conspirators went to the voters’ residences and instructed them to vote for Raia and in favor of a ballot referendum that Raia supported that would have loosened rent control restrictions in Hoboken. The conspirators promised the voters that they would be paid $50 for casting their mail-in ballots and told them that they could pick up their checks after the election at Raia’s office in Hoboken.  Raia and his workers, including Braxton, Calicchio, Camis, and others, checked the ballots to ensure that voters had voted the way that they had instructed them to vote. Raia and his workers also had the voters sign declarations falsely stating that they had been paid in exchange for working on the campaign, when in fact the voters had been paid for their vote. After the election, the voters received $50 checks from a political consulting firm that was paid by Raia’s political action committee. Those $50 checks were never disclosed on Raia’s publicly filed political action committee election reports.

Braxton and Camis previously pleaded guilty to their roles in the conspiracy. Braxton is scheduled to be sentenced on Sept. 10, 2019, and Camis’ sentencing date has yet to be scheduled. Calicchio previously pleaded guilty to violating the federal Travel Act and is scheduled to be sentenced on Sept. 12, 2019. Raia, Braxton, Calicchio, and Camis each face a maximum penalty of five years in prison and a $250,000 fine. 

U.S. Attorney Craig Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Ehrie in Newark, and special agents of the U.S. Department of Housing and Urban Development, Office of the Inspector General, under the direction of Special Agent in Charge Christina Scaringi, 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’s Special Prosecutions Division and Assistant U.S. Attorney Rahul Agarwal, Deputy Chief of the Criminal Division.

NEWARK, N.J. – An MS-13 member previously named one of the FBI’s 10 Most Wanted Fugitives today admitted 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, pleaded guilty before U.S. District Judge Stanley R. Chesler in Newark federal court to an information charging him with one count of racketeering conspiracy.

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.

The charge of racketeering conspiracy carries a maximum sentence of life imprisonment and a $250,000 fine. A plea agreement between the government and Yovany-Gomez calls for Yovany-Gomez to serve an agreed-upon sentence of 25 years in prison if it accepted by the court, at which point the government will dismiss the remaining charges in the 2013 federal indictment against Yovany-Gomez. Sentencing is scheduled for July 31, 2019.

U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. 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 First Assistant Attorney General and Acting Prosecutor Jennifer Davenport, 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.

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

CAMDEN, N.J. – A Camden woman today admitted accessing a protected computer without authorization to steal money from her employer and then laundering the proceeds of her theft, U.S Attorney Craig Carpenito announced.

Dilcia Mercedes 38, pleaded guilty before U.S. District Judge Renee Marie Bumb to an information charging her with one count of unauthorized access of a computer with intent to defraud and one count of money laundering.

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

From April 2014 to May 2017, Mercedes worked for a mortgage lender as a payment processor, and had access to the company’s computer system. She discovered that some escrow checks were returned to the company as undeliverable. Mercedes admitted that she would monitor those funds by checking monthly reports to see if the funds were ever claimed. If the money was not claimed, Mercedes recruited various family members and friends to allow her to use their bank accounts. With that information, Mercedes used her family members’ and friends’ identities to open reloadable debit/credit accounts. She accessed the company’s computer system and made it appear as if the customer requested that the money be sent via wire transfer into the fraudulent accounts. After creating the request, Mercedes then accessed the company’s computer then approved the transfer, using a co-worker’s login and password. 

Mercedes caused approximately 580 fraudulent wire transfers, totaling more than $2 million, from her company’s bank account to bank accounts and reloadable debit/credit accounts controlled by Mercedes’ relatives, friends or associates. She then used the money to pay personal expenses.

The count of accessing a protected computer without authorization to defraud carries a maximum potential penalty of five years in prison and a $250,000 fine. The count of money laundering carries a maximum penalty of 20 years in prison and a fine of $500,000. Sentencing is scheduled for Sept. 23, 2019.

U.S. Attorney Carpenito credited special agents of IRS - Criminal Investigation, under the direction of Special Agent in Charge John R. Tafur; special agents of the Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Brian Michael, special agents of the U.S. Department of Housing and Urban Development, Office of Inspector General, under the direction of Special Agent in Charge Wyatt Achord, and special agents of the Board of Governors of the Federal Reserve System Consumer Financial Protection Bureau, Office of Inspector General, under the direction of Special Agent in Charge Stephen Carroll, with the investigation leading to today’s guilty plea.

The government is represented by Assistant U.S. Attorney Jason M. Richardson of the U.S. Attorney=s Office Criminal Division in Camden.

 

NEWARK, N.J. – Two individuals were found guilty today for their respective roles in using phony monetary instruments to obtain luxury vehicles and other high value items; one of the defendants was additionally convicted of bankruptcy fraud, U.S. Attorney Craig Carpenito announced.     

Germaine Howard King, a/k/a “Germaine Howard,” 43, of Elizabeth, New Jersey, was convicted for his role in a scheme to defraud banks and other lenders using phony money orders to fraudulently discharge a $400,000 mortgage, to fraudulently obtain two Mercedes Benz (one 2007 and one 2010) cars, and to pay off credit card bills. In addition, King was convicted of a scheme to use phony cashier’s checks to pay off his co-defendant’s five luxury cars.

Daniel D. Dxrams, currently known as “Daniel Kusi,” formerly known as “Danny D. Dxrams,” 40, of Maplewood, New Jersey, was convicted for his role in a scheme to fraudulently pay off a Rolls Royce, Bentley, and three Mercedes Benz cars (two 2015 cars and one 2016 car). In addition, Dxrams was convicted of bankruptcy fraud and making a false oath during a bankruptcy proceeding.

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

King conspired with Melissa Reynolds to make fraudulent money orders on their home computers. They mailed these phony money orders to a credit union in an effort to fraudulently pay off their two Mercedes Benz cars. Although the credit union rejected both bogus money orders, King and Reynolds mailed correspondences to the credit union falsely claiming that the debt was satisfied. They then stopped paying their car loans, and King kept the car. King and Reynolds mailed a fraudulent money order in the amount of $432,000 to a financial institution to pay off their mortgage. The financial institution erroneously accepted the fraudulent payment and credited it as a payoff for the mortgage. When the financial institution filed a suit seeking to reinstate the fraudulently discharged mortgage, King and Reynolds continued to allege in court that the mortgage had been paid and submitted a phony receipt for the bogus money order. King also made and mailed fraudulent money orders in an attempt to pay off his credit card bills.

Dxrams, King, and Reynolds conspired to fraudulently pay off Dxrams’ five luxury cars. They sent a bogus $101,000 cashier’s check to a finance company that enabled Dxrams to obtain a 2012 Bentley for free. Dxrams sold the car to a third party for approximately $82,000 and then issued a bank check to King for approximately $25,000. The defendants also used this scheme in an effort to fraudulently obtain three Mercedes-Benz cars and a Rolls Royce.

Dxrams was also convicted of bankruptcy fraud and making a false oath before the bankruptcy court. In December 2017, Dxrams filed a bankruptcy petition under penalty of perjury. He falsely concealed his ownership of a car rental business and the gross receipts he earned through this car rental business, his sale of the Bentley, his receipt of money from a personal injury lawsuit, his ownership of firearms, and his marital status, among other things. In January 2018, Dxrams appeared before the bankruptcy trustee and, after being placed under oath, made false statements concerning his bankruptcy petition and his sale of the Bentley.

Reynolds previously pleaded guilty to conspiracy to commit bank fraud and mail fraud affecting financial institutions, and is awaiting sentencing. Another defendant, Arthur M. Martin III, has also pleaded guilty for his role in a scheme to fraudulently discharge a mortgage on his home, and is awaiting sentencing.

U.S. Attorney Carpenito credited special agents of the FBI and the Joint Terrorism Task Force, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark; the N.J. Office of Homeland Security and Preparedness, under the direction of Director Jared Maples; the U.S. Department of Education, Office of Inspector General Eastern Regional Office, under the direction of Assistant Special Agent in Charge Debbi Mayer; and the U.S. Department of Housing and Urban Development, Office of Inspector General, under the direction of Special Agent in Charge Christina Scaringi with the investigation leading to the convictions.

The government is represented by Assistant U.S. Attorney Anthony Moscato, Chief of the U.S. Attorney’s National Security Unit, and Lakshmi Srinivasan Herman, of the National Security Unit, in Newark.

NEWARK, N.J. – A Paterson, New Jersey, man was indicted today for conspiring to distribute heroin, U.S. Attorney Craig Carpenito announced today.

Rolfi Ferreira-Cruz, 25, was charged by indictment with one count of conspiring to distribute and possess with the intent to distribute 100 grams or more of heroin and a quantity of cocaine (Count One), possessing with the intent to distribute 100 grams or more of heroin and a quantity of cocaine (Count Two), and possessing a firearm in furtherance of a drug trafficking crime (Count Three). Ferreira-Cruz is currently in custody in the Dominican Republic for attempted murder in a June 9, 2019, shooting.

Counts One and Two carry a mandatory minimum penalty of five years in prison, a maximum of 40 years in prison, and a $5 million fine. Count Three carries a mandatory minimum penalty of five years in prison to be served consecutively to any other term of imprisonment.

U.S. Attorney Carpenito credited special agents of DEA, under the direction of Special Agent in Charge Susan A. Gibson in Newark, as well officers of the Passaic County Sheriff’s Office, under the direction of Sheriff Richard H. Berdnik, with the investigation leading to the charge.

The government is represented by Assistant U.S. Attorney Leah Gould of the OCDETF/Narcotics Unit in Newark.

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

NEWARK, N.J. – A Passaic County, New Jersey, man was sentenced today to 78 months in prison for his role as the leader of a statewide brothel ring that harbored illegal aliens and transported women across state lines for prostitution, U.S. Attorney Craig Carpenito announced.

Juan Fredy Hernandez-Zozaya, 41, of Passaic, New Jersey, was convicted on Jan. 15, 2019, following a one-week trial for conspiracy to commit interstate transport for purposes of prostitution, and conspiracy to harbor illegal aliens. U.S. District Judge Stanley R. Chesler presided over the trial and imposed today’s sentence. The 78-month prison term was ordered to run consecutive to a 56-year state sentence Hernandez-Zozaya had previously received for state murder charges, and included a three-year term of supervised release.

According to documents filed in this case, evidence at trial, and statements made in court:

From at least March 2011 through September 2014, Hernandez-Zozaya served as the leader of a large-scale prostitution ring that operated throughout New Jersey, including at brothel locations in New Brunswick, Trenton, Orange, Asbury Park, Lakewood, and Bridgeton. Hernandez-Zozaya and his girlfriend, Elizabeth Rojas-Rojas, employed dozens of women and other workers to run the brothels, the large majority of whom were in the country illegally.

The conspiracy also involved at least three murders committed at Hernandez-Zozaya’s behest by “enforcers” for the prostitution business that were hired and managed by Hernandez-Zozaya. One such enforcer, Wilmer Chavez Romero, was previously convicted by a jury of multiple counts of racketeering, assault, firearms offenses, and murder in aid of Hernandez-Zozaya’s enterprise. Chavez Romero was sentenced on March 27, 2019, by U.S. District Court Judge William H. Walls to life in prison. Hernandez-Zozaya was himself previously convicted in Cumberland County Superior Court of committing two murders related to the brothel enterprise. In imposing the sentence, Judge Chesler noted these related acts of violence, as well as Hernandez-Zozaya’s “horrendous” conduct in employing and exploiting those women who, as a result of their immigration status, had little choice but to work at the brothels.

U.S. Attorney Carpenito credited special agents of 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 sentencing. He also thanked the Cumberland County Prosecutor’s Office, Trenton Police Department, Mercer County Prosecutor’s Office, and the N.J. State Police Ballistics Lab, for their roles in the investigation.

The government is represented by Assistant U.S. Attorneys Meredith Williams and Melissa Wangenheim of the U.S. Attorney’s Office Criminal Division in Newark.

Defense counsel: Anthony Iacullo Esq., Nutley, New Jersey, and Kelley Sharkey Esq., Brooklyn, New York

Plea Agreements Call for Total Sentence of 30 to 40 Years in Prison

TRENTON, N.J. – An Ocean County, New Jersey, man today admitted producing images of himself sexually abusing young children, U.S. Attorney Craig Carpenito announced.

Sebastien Attar, 35, of Brick, New Jersey, pleaded guilty before U.S. District Peter G. Sheridan in Trenton federal court to an information charging him with two counts of sexual exploitation of children. Separately, Attar also pleaded guilty before Judge Sheridan to a superseding indictment charging him with one count of advertising child pornography.

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

Beginning in mid-2017, federal law enforcement began investigating individuals participating in a private chat messaging group dedicated to the discussion and dissemination of images and videos depicting the sexual abuse of children. The private chat group was named “Taboo Train 2.0,” and law enforcement identified Attar as a member of that group, operating with the account identifier “Seb Seb.” The investigation revealed that on multiple occasions and in response to requests from other users, Attar, operating as “Seb Seb,” shared with the “Taboo Train 2.0” chat group images depicting sexual acts between adults and very young children.

In March 2018, in connection with the investigation of the “Taboo Train 2.0” chat group, federal law enforcement agents executed a search warrant at Attar’s Brick, New Jersey residence, and seized a number of electronic devices and electronic storage media. In July 2018, a grand jury sitting in the Northern District of Georgia returned a superseding indictment charging Attar and others with advertising child pornography.

In January 2019, during a forensic review of the electronic media seized pursuant to the search of Attar’s residence, law enforcement discovered graphic images in which an individual – later identified as Attar – had photographed himself engaged in sexual acts with two extremely young children, estimated to be less than one month old and less than six months old, respectively, at the time the images were produced. Upon discovery of these images, Attar promptly was arrested and charged in a criminal complaint filed in the District of New Jersey, leading to the two-count information filed today. As part of today’s resolution, the superseding indictment filed in the Northern District of Georgia against Attar was formally transferred to the District of New Jersey so that Attar could plead guilty to that charge in conjunction with his guilty plea to the information filed in this district.

The statutes under which Attar pleaded guilty each carry a statutory mandatory minimum term of 15 years in prison, a statutory maximum of 30 years in prison, and a maximum fine of $250,000 on each count. If accepted by the Court at the time of sentencing, the parties’ plea agreements would result in Attar serving a stipulated total sentence between 30 and 40 years in prison. Sentencing is scheduled for Oct. 3, 2019.

U.S. Attorney Carpenito credited special agents of the FBI-Newark Field Office, under the direction of Special Agent in Charge Gregory W. Ehrie, and special agents of the FBI-Atlanta Field Office, under the direction of Special Agent in Charge J.C. Hacker, with the investigations leading to today’s guilty pleas. Carpenito also thanked prosecutors from the U.S. Attorney’s Office for the Northern District of Georgia, under the direction of U.S. Attorney Byung J. Pak, for their assistance.

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

Defense counsel: David Jay Glassman Esq., Marlton, New Jersey

CAMDEN, N.J. – A Gloucester County, New Jersey, man was arrested today for allegedly mailing more than 10,000 fraudulent invoices for non-existent medical supplies to hospitals, clinics and doctor’s offices throughout the United States, U.S. Attorney Craig Carpenito announced.

Robert S. Armstrong, 48, of Turnersville, is charged by complaint with three counts of mail fraud. He is scheduled to appear this afternoon before U.S. Magistrate Judge Karen M. Williams in Camden federal court.

According to documents filed in this case:

Operating under the name of Pinnacle Medical Supplies, Armstrong prepared fraudulent invoices billing hospitals, clinics and doctors’ offices across the United States for medical supplies that the providers never ordered or received. The invoices included fraudulent shipping information and a fraudulent address.

Armstrong then contracted with a legitimate bulk mailing company to mail more than 10,000 invoices to medical providers. Each invoice included a payment envelope pre-addressed to Pinnacle Medical Supply at a mail box Armstrong had set up with commercial mail receiving agents.

In response to the phony invoices, at least 169 medical providers sent monies to Pinnacle Medical Supply. Armstrong deposited those checks – totaling $43,248 – from the victim medical providers into a bank account he opened in the name of Pinnacle Medical Supply.

The charge of mail fraud is punishable by a maximum potential penalty of 20 years in prison and a fine of the greater of $250,000, twice the gross profits to Armstrong or twice the gross losses to the victims of his offense.

U.S. Attorney Carpenito credited postal inspectors of the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge John Walker in Philadelphia, with the investigation leading to today’s arrest.

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

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

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

TRENTON, N.J. – Two men have been charged in connection with the armed robbery of a convenience store in Mercer County, New Jersey, on June 16, 2019, U.S. Attorney Craig Carpenito announced today.

Omar Feliciano-Estremera, 42, and Gabriel Lopez, 31, both of Trenton, are each charged by complaint with one count of Hobbs Act robbery and will make their initial court appearances before U.S. Magistrate Judge Douglas E. Arpert in Trenton federal court on a date to be determined.

According to the complaint:

Lopez entered a convenience store in Hamilton Township, New Jersey, displayed a black handgun to the clerk and demanded the money in the store’s register. Law enforcement officers conducting surveillance observed Lopez exiting the convenience store immediately after the robbery and heading toward a minivan belonging to Feliciano-Estremera, who was a suspect in an earlier robbery in which his minivan was captured on camera while acting as the getaway car.

In addition to the surveillance, law enforcement officers were tracking Feliciano-Estremera’s cellular phone. As Lopez exited the convenience store, he observed law enforcement vehicles with their lights activated and he ran to a nearby wooded area. Law enforcement officers pursued and apprehended Lopez, who resisted arrest and threatened to shoot an officer. Officers then placed Feliciano-Estremera, who was seated in the driver’s seat of the minivan, under arrest as the suspected getaway driver. Law enforcement officers searched the wooded area through which Lopez had fled and recovered a black handgun matching the description of gun Lopez allegedly carried during the robbery. The convenience store’s video camera also captured Lopez conducting the robbery.

The count of Hobbs Act robbery carries a maximum potential sentence of 20 years in prison and a $250,000 fine, or twice the gain or loss from the offense.

U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark; the Hamilton Police Department, under the direction of Chief James M. Stevens; and the Mercer County Prosecutor’s Office, under the direction of Prosecutor Angelo J. Onofri, with the investigation leading to today’s charges.

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

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

NEWARK, N.J. – Twenty-seven people have been charged for their roles as members, associates, and suppliers of a Newark-based drug-trafficking organization that distributed heroin and crack cocaine and used firearms to protect their illegal operation, U.S. Attorney Craig Carpenito announced today.

The charges and arrests resulted from a long-running wiretap investigation led by the U.S. Attorney’s Office and the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives, in conjunction with the Newark Police Department and the U.S. Drug Enforcement Administration. The charges include operating a continuing criminal enterprise and conspiracies to distribute one kilogram of heroin and/or 280 grams of crack cocaine. (See chart below.)

The 20 defendants arrested today are scheduled to appear this afternoon before U.S. Magistrate Judge James B. Clark III. Five defendants were already in custody on state charges and two remain at large.

“These defendants are charged with orchestrating and participating in a massive drug trafficking organization that pumped heroin and crack cocaine into the streets of Newark and surrounding areas virtually non-stop,” U.S. Attorney Carpenito said. “As alleged in the complaint, they operated out of an abandoned home in Newark that they turned into a fortress protected by illegal firearms, which featured a fast-food-style drive-through window for the quick and easy sale of these dangerous drugs. We are proud to work with our federal, state, and local partners in targeting criminal organizations like these and bringing the participants to justice.”

“With these types of multi-agency partnerships we can rid the city of some of these criminal gangs that make the neighborhoods they operate unsafe and damage the reputation of the city,” Newark Public Safety Director Anthony F. Ambrose said. “The criminals perpetuate the narrative that Newark is crime-ridden when, in fact, most areas are safe, and the overwhelming majority of people are hard-working folks who want to see their streets cleansed of the criminal element. I’d like to thank U.S. Attorney Craig Carpenito and all of our other federal partners for putting their resources into smashing these rings.”

“These arrests are the culmination of the diligent investigative work conducted by our ATF special agents, in cooperation with our federal, state and local partners, who were tasked with targeting violent offenders in the South District of Newark and beyond,” ATF Newark Field Division Special Agent in Charge Charlie J. Patterson said. “These arrests should serve as a warning to those who choose to plague and flood their communities with violence and drugs. Their engagement in such crimes will bring the full force of the federal justice system against them. ATF would like to especially extend our gratitude to all of our agency partners and the United States Attorney's Office for their continued partnership in combatting violent crime in the greater Newark area.”

“The members of this drug organization went to great lengths to protect their illegal activity by turning an abandoned building into a fortress,” DEA New Jersey Division Special Agent in Charge Susan A. Gibson said. “The around the clock drug distribution of these drug dealers has been a scourge on the community. The public should know that DEA and all of our partners will continue to work to make every community safe.”

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

Several of the defendants charged today are members and associates of a Bloods-affiliated gang called the “CKarter Boys” – a play on “the Carter,” the name of the drug distribution building in the 1991 film New Jack City. As Bloods members, the CKarter Boys use the letters “CK” to signify “Crip Killer,” a sign of disrespect to their rival gang, the Crips.

The investigation revealed that the organization’s leaders – Shaheed Blake, a/k/a “Sha,” a/k/a “Sha Gotti,” a/k/a “Bruh,” and Anderson Hutchinson, a/k/a “Murda Rah” – operated a massive drug market that operated 24 hours a day, seven days a week, flooding the streets of Newark with heroin and crack cocaine and generating approximately $10,000 in daily revenue.

Blake, Hutchinson, and members of their organization sold heroin and crack cocaine to customers out of two neighboring, abandoned houses near the Newark-Irvington border. These drug dens were located in the heart of a residential community, just two blocks from the Thurgood Marshall Elementary School, an Irvington public school serving children from pre-kindergarten to fifth grade.

The organization made efforts to fortify one of the abandoned residences – 921 South 20th Street in Newark – boarding up all doors and windows until it was virtually impenetrable. The defendants accessed the residence by way of a ladder to a second-floor window, pulling the ladder inside behind them. Once inside, the defendants would sell heroin and crack-cocaine through a small hole that was cut out on a first-floor outer wall, allowing customers to purchase narcotics in exchange for currency, similar to a restaurant’s drive-through window. In a backyard shed, the defendants stored narcotics, a communal cell phone that was used to operate the business, and firearms, including a .45 caliber Hi-Point and 9mm Sig Sauer firearms, and several boxes of .45 caliber and .380 caliber ammunition that were seized during the investigation.

In addition to the charges against Blake, Hutchinson, and numerous members of their distribution operation, five of the organization’s drug suppliers were charged.

U.S. Attorney Carpenito credited special agents of ATF, under the direction of Special Agent in Charge Patterson in Newark; members of the Newark Department of Public Safety, under the direction of Public Safety Director Ambrose, and special agents of the DEA-New Jersey Division, under the direction of Special Agent in Charge Gibson, with the investigation leading to the charges.

He also thanked the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Theodore N. Stephens II; the Essex County Sheriff’s Office, under the direction of Sheriff Armando B. Fontoura; the N.J. State Police, under the direction of Col. Patrick J. Callahan; the Irvington Police Department, under the direction of Director Tracy Bowers; the Union County Prosecutor’s Office, under the direction of First Assistant Attorney General and Acting Prosecutor Jennifer Davenport; the Belleville Police Department, under the direction of the Chief Mark Minichini; the West Orange Police Department, under the direction of Chief James Abbott; the Livingston Police Department, under the Direction of Chief Gary Marshuetz; the Nutley Police Department, under the Direction of Chief Thomas J. Strumolo; the Orange Police Department, under the direction of Director Todd Warren; and the Verona Police Department, under the direction of Chief Christopher Kiernan.

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

The government is represented by Assistant U.S. Attorney Desiree Grace Latzer 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 considered innocent unless and until proven guilty.

19-175 

Defendant

Age

Charges

Potential Penalties

Shaheed Blake   a/k/a "Sha"   a/k/a "Bruh"   a/k/a "Sha Gotti"

36

Continuing Criminal Enterprise Conspiracy to distribute 280 grams or more of crack cocaine, one kilogram or more of heroin

20 year mandatory minimum; up to life 10 year mandatory minimum; up to life  

Anderson Hutchinson   a/k/a "Murda Rah"

37

Continuing Criminal Enterprise Conspiracy to distribute 280 grams or more of crack cocaine, one kilogram or more of heroin

20 year mandatory minimum; up to life 10 year mandatory minimum; up to life  

Keyenn Rodgers   a/k/a "Ali Bang"

49

Conspiracy to distribute 280 grams or more of crack cocaine, one kilogram or more of heroin

10 year mandatory minimum; up to life  

Jason Colon

37

Conspiracy to distribute 280 grams or more of crack cocaine, one kilogram or more of heroin

10 year mandatory minimum; up to life  

Jesse Scott   a/k/a "King"

41

Conspiracy to distribute 280 grams or more of crack cocaine, one kilogram or more of heroin

10 year mandatory minimum; up to life  

Hanif Yarrell   a/k/a "Haz"

37

Conspiracy to distribute 280 grams or more of crack cocaine, one kilogram or more of heroin

10 year mandatory minimum; up to life  

William Teal   a/k/a "Bam"

42

Conspiracy to distribute 280 grams or more of crack cocaine, one kilogram or more of heroin

10 year mandatory minimum; up to life  

Daquan Lockhart   a/k/a "Slim"

29

Conspiracy to distribute 280 grams or more of crack cocaine, one kilogram or more of heroin

10 year mandatory minimum; up to life  

**Jabaar Blake   a/k/a "Jab"

39

Conspiracy to distribute 280 grams or more of crack cocaine, one kilogram or more of heroin

10 year mandatory minimum; up to life  

Sharif Davis   a/k/a "Reek"

36

Conspiracy to distribute 280 grams or more of crack cocaine, one kilogram or more of heroin

10 year mandatory minimum; up to life  

Dorrell Blake   a/k/a "Rell"

43

Conspiracy to distribute 280 grams or more of crack cocaine, one kilogram or more of heroin

10 year mandatory minimum; up to life  

**David Rogers   a/k/a "Fifty"

26

Conspiracy to distribute 280 grams or more of crack cocaine, one kilogram or more of heroin

10 year mandatory minimum; up to life  

Roger Thomas   a/k/a "Riq"

49

Conspiracy to distribute 280 grams or more of crack cocaine, one kilogram or more of heroin

10 year mandatory minimum; up to life  

Anthony Bowens   a/k/a "Fu"

55

Conspiracy to distribute 280 grams or more of crack cocaine, one kilogram or more of heroin Conspiracy to distribute 28 grams or more of crack cocaine

10 year mandatory minimum; up to life   5 year mandatory minimum; up to 40 years

Shadeasha Ford   a/k/a "G-Girl"   a/k/a "G-Baby"

40

Conspiracy to distribute 280 grams or more of crack cocaine, one kilogram or more of heroin

10 year mandatory minimum; up to life  

Aldoray McClain   a/k/a "Sal"

49

Conspiracy to distribute 280 grams or more of crack cocaine, one kilogram or more of heroin

10 year mandatory minimum; up to life  

*Rasheem Langley   a/k/a "Q"

46

Conspiracy to distribute 280 grams or more of crack cocaine, one kilogram or more of heroin Conspiracy to distribute 28 grams or more of crack cocaine

10 year mandatory minimum; up to life   5 year mandatory minimum; up to 40 years

Brittney Thomas   a/k/a "Queen"

30

Conspiracy to distribute 280 grams or more of crack cocaine, one kilogram or more of heroin

10 year mandatory minimum; up to life  

*Andrew Knox   a/k/a "Mil"

50

Conspiracy to distribute 280 grams or more of crack cocaine, one kilogram or more of heroin

10 year mandatory minimum; up to life  

**Todd Garrett   a/k/a "T"

51

Conspiracy to distribute 280 grams or more of crack cocaine, one kilogram or more of heroin

10 year mandatory minimum; up to life  

Majuan Green

38

Conspiracy to distribute 280 grams or more of crack cocaine, one kilogram or more of heroin

10 year mandatory minimum; up to life  

**Lamont Pugh   a/k/a "Monty"

50

Conspiracy to distribute 280 grams or more of crack cocaine, one kilogram or more of heroin

10 year mandatory minimum; up to life  

Marquise O'Neal   a/k/a "Mook"

51

Conspiracy to distribute 280 grams or more of crack cocaine, one kilogram or more of heroin

10 year mandatory minimum; up to life  

Rayshell Goff

49

Conspiracy to distribute 28 grams or more of crack cocaine

5 year mandatory minimum; up to 40 years

Bernard Brown   a/k/a "BB"

52

Conspiracy to distribute 28 grams or more of crack cocaine

5 year mandatory minimum; up to 40 years

**Paul Johnson

40

Conspiracy to distribute 28 grams or more of crack cocaine

5 year mandatory minimum; up to 40 years

Aaron Watson   a/k/a "AR"

42

Distribution of 28 grams or more of crack cocaine

5 year mandatory minimum; up to 40 years

 

*at large

**in custody on state charges

TRENTON, N.J. – A Middlesex County, New Jersey, man today admitted that he conspired to distribute more than 100 grams of heroin as part of a conspiracy responsible for distributing significant quantities of heroin and cocaine in the Bayshore area of Monmouth and Middlesex counties, U.S. Attorney Craig Carpenito announced.

Richard Gethers, a/k/a “Richie,” a/k/a “Bart,” 47, of Perth Amboy, New Jersey, pleaded guilty before U.S. District Judge Brian R. Martinotti in Trenton federal court to an information charging him with one count of conspiracy to distribute and possess with intent to distribute 100 grams or more of heroin. Gethers also admitted to conspiring to distribute and possess with intent to distribute a quantity of cocaine.

In November 2018, Gethers and 14 others were charged in a federal criminal complaint with conspiracy to distribute heroin and cocaine. Gethers is the third defendant to plead guilty.

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

From May 2017 to November 2018, the defendants and others engaged in a narcotics conspiracy that operated in the Raritan Bayshore region of Middlesex and northern Monmouth counties.

Through the interception of telephone calls and text messages pursuant to court-authorized wiretap orders, controlled purchases of heroin and cocaine, the use of confidential sources of information, and other investigative techniques, law enforcement learned that Gethers and co-defendants Guy Jackson and Deberal Rogers regularly obtained supplies of large quantities of heroin and cocaine for further distribution from Gregory Gillens. Lashawn Mealing, Jackson’s wife, also engaged in the conspiracy to distribute narcotics.

Members of the conspiracy sold the narcotics to other conspirators, distributors, sub-dealers, and end-users in the Bayshore area. Some of the heroin distributed by the conspiracy contains fentanyl, a dangerous synthetic opioid.

The heroin conspiracy count to which Gethers pleaded guilty carries a statutory mandatory minimum term of imprisonment of five years, a maximum potential penalty of 40 years, and a maximum fine of $5 million. Sentencing is scheduled for Oct. 8, 2019.

U.S. Attorney Carpenito credited special agents of the FBI, Newark Division, Red Bank Resident Agency, Jersey Shore Gang and Criminal Organization Task Force (including representatives from the Bradley Beach Police Department, Brick Police Department, Howell Police Department, Marlboro Police Department, Monmouth County Sheriff's Office, Toms River Police Department, and Union Beach Police Department) under the direction of Special Agent in Charge Gregory W. Ehrie; special agents of the FBI, Philadelphia Division, Scranton Resident Agency, under the direction of Special Agent in Charge Michael T. Harpster; the N.J. State Police, under the direction of Col. Patrick J. Callahan, Superintendent; the Matawan Police Department, under the direction of Chief Thomas J. Falco, Jr.; the Holmdel Police Department, under the direction of Chief John Mioduszewski; the Highlands Police Department, under the direction of Chief Robert Burton; the Monmouth County Prosecutor’s Office, under the direction of Monmouth County Prosecutor Christopher J. Gramiccioni; the Old Bridge Police Department, under the direction of Chief William A. Volkert; the Keansburg Police Department, under the direction of Chief James K. Pigott; the Hazlet Police Department, under the direction of Chief Philip Meehan; and the Aberdeen Police Department, under the direction of Chief John T. Powers, with the investigation leading to today’s plea.

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

The charges and allegations against the remaining 12 defendants are merely accusations, and they are presumed innocent unless and until proven guilty.

Defense counsel: David R. Oakley Esq., Princeton, New Jersey

TRENTON, N.J. – A Somerset County, New Jersey, man was sentenced today to 84 months in prison for interstate travel to engage in sexual activity with a minor and receipt of images of child sexual abuse, U.S. Attorney Craig Carpenito announced.

Stephen Bradley Mell, 53, of Far Hills, New Jersey, pleaded guilty before U.S. District Judge Brian R. Martinotti in Trenton federal court to an information charging him with one count of interstate travel to engage in illicit sexual conduct and one count of receipt of child pornography.

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

From July 2017 through December 2017, Mell knowingly traveled in interstate commerce for the purpose of engaging in the production of child pornography and sexual acts with a minor who he knew to be less than 17 years of age. Mell also admitted knowingly receiving child pornography in interstate commerce during the same period.

In addition to the prison term, Judge Martinotti sentenced Mell to five years of supervised release, fined him $40,000 and ordered him to pay restitution of $35,200 and a Justice for Victims of Trafficking Act assessment of $5,000.

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

The government is represented by Assistant U.S. Attorney Danielle Alfonzo Walsman, Chief of the U.S. Attorney’s Office Public Protection Unit.

Defense counsel: Robert Bianchi Esq., West Caldwell, New Jersey; David Bruno Esq., West Caldwell; Michael Koribanics Esq., Clifton, New Jersey; and John Whipple, Morristown, New Jersey

TRENTON, N.J. – An Ocean County, New Jersey, man today admitted his role in distributing images and videos of child sexual abuse, U.S. Attorney Craig Carpenito announced.

Michael A. Ruggiero, 37, of Forked River, New Jersey, a former corrections officer, pleaded guilty before U.S. District Judge Peter G. Sheridan in Trenton federal court to an information charging him with one count of distribution of child pornography.

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

From April 16, 2016, to April 19, 2016, Ruggiero used a mobile chat application to distribute and share over the internet images and videos of child sexual abuse. Some of the images and videos were of prepubescent children or children under the age of 12. Ruggiero also admitted that he received over the same mobile chat application other images and videos of child sexual abuse and that he possessed additional depictions of child sexual abuse on his cellular telephone at the time of his arrest in June 2017.

The charge of distributing child pornography carries a mandatory minimum sentence of five years in prison, a maximum potential penalty of 20 years in prison, and a $250,000 fine. Sentencing is scheduled for Oct. 3, 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 A. Michael; inspectors of the U.S. Postal Inspection Service, under the direction of Postal Inspector in Charge Daniel B. Brubaker, Philadelphia Division; and members of the Ocean County Prosecutor’s Office, under the direction of Prosecutor Bradley D. Billhimer, with the investigation leading to today’s plea.

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

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

CAMDEN, N.J. – A Pennsylvania woman was sentenced today to 19 months in prison for unlawfully distributing prescription opioid pain medication in the Philadelphia and South Jersey areas, U.S. Attorney Craig Carpenito announced.

Nancy Ayres, 44, a/k/a “Nancy Esslinger,” of Upper Chichester, Pennsylvania, previously pleaded guilty before U.S. District Judge Renee Marie Bumb to an information charging her with one count of distributing and possessing with intent to distribute oxycodone.  Judge Bumb imposed the sentence today in Camden federal court.  

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

Ayres is a dental assistant and has worked in several dental offices in the Philadelphia area and neighboring states. Beginning in at least December 2017, Ayres obtained prescriptions in close proximity to each other for large quantities of oxycodone pills from at least three different medical professionals.

Between April 2018 and June 2018, Ayres allegedly sold 1,044 15- and 20-milligram oxycodone tablets. Ayres made representations that she could obtain other prescription medications for sale, including muscle relaxers and medications for pain management, erectile dysfunction, and anxiety.

In addition to the prison term, Judge Bumb sentenced Ayres to three years of supervised release.

U.S. Attorney Carpenito credited special agents of the Drug Enforcement Administration’s New Jersey Division, under the direction of Special Agent in Charge Susan A. Gibson,; and the N.J. Attorney General’s Atlantic City Task Force, under the direction of Attorney General Gurbir S. Grewal, with the investigation leading to today’s sentencing.

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

TRENTON, N.J. – The owner of a purported business consulting firm was sentenced today to 25 months in prison for operating a $1.1 million scheme that artificially inflated the stock price of a publicly traded company he controlled, U.S. Attorney Craig Carpenito announced.

James Farinella, 52, of Springfield, New Jersey, previously pleaded guilty before U.S. District Judge Anne E. Thompson to one count of conspiracy to commit securities fraud. Judge Thompson imposed the sentence today in Trenton federal court.

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

From June 2012 through December 2012, Farinella and others allegedly operated a scheme to profit by fraudulently inflate the prices of Pazoo Inc. (PZOO). Pazoo had little or no real business operations, and when it started trading in June 2012, Farinella controlled 98 percent of the free-trading shares in Pazoo.

Farinella and other conspirators allegedly inflated the price of those shares by orchestrating a series of trades between accounts they controlled to create the appearance that Pazoo stock was rising in price and heavily traded. In order to further inflate the prices, Farinella and his conspirators also disseminated misleading promotional materials to lure investors to purchase the stocks, including touting Pazoo as a leading provider of nutritional supplements for people and their pets.

After inflating the price of the stock, Farinella and his conspirators sold large volumes of the stock to over 1,000 investors at the artificially inflated prices. The company’s stock price then dropped, causing victims of the scheme to suffer losses. The alleged stock manipulation scheme generated approximately $1.1 million in gross trading proceeds.

In addition to the prison term, Judge Thompson sentenced Farinella to 3 years of supervised release.

The U.S. Securities and Exchange Commission (SEC) has a civil complaint pending against Farinella.

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 sentencing. He also thanked the U.S. Securities and Exchange Commission’s New York Regional Office, under the direction of Marc P. Berger, for its assistance in this matter.

The government is represented by Assistant U.S. Attorney Justin S. Herring, Chief of the Cybercrimes Unit in Newark.

Defense counsel: Bruce I. Goldstein Esq., Florham Park, New Jersey

NEWARK, N.J. – A Clifton, New Jersey, man admitted today to owning and operating a variety of household goods moving companies in New Jersey that systematically extorted hundreds of customers, U.S. Attorney Craig Carpenito announced.

Rami Zubidat, 31, pleaded guilty before U.S. District Judge Susan D. Wigenton in Newark federal court to an information charging him with one count of conspiracy to commit wire fraud. 

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

Zubidat and his co-conspirators jointly operated numerous moving companies by quoting customers “low-ball” price estimates for household goods moves and then raising prices on the date of the move after the goods were loaded and the customers in vulnerable positions.  Through this scheme, Zubidat and his co-conspirators consistently, over a number of years and hundreds of moves, raised final prices for moves above the allowed increase from initial estimates as provided by federal regulations, including increases as high as 400 percent on the day of the move.  The collective difference between the many estimates and the final balances for the customers’ moves was over a million dollars.  Zubidat personally owned a number of the moving companies involved.   

The conspiracy to commit wire fraud charge carries a maximum penalty of 20 years in prison and a fine of $250,000.  Zubidat has been in custody on this charge since August 2018. Sentencing is scheduled for September 19, 2019. 

U.S. Attorney Craig Carpenito credited special agents of the Department of Transportation-Office of the Inspector General, under the direction of Special Agent in Charge Douglas Shoemaker, Northeast Region; postal inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge James Buthorn, Newark Division; and special agents of U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI), under the direction of Special Agent in Charge Angel Melendez, New York Field Office, with the investigation leading to today’s guilty plea. 

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

Defense counsel: Stephen Turano, Esq., Newark, New Jersey

 

Six Arrests Made in Coordinated Takedown by Federal and State Law Enforcement; Two Defendants At-Large; One Defendant Currently Released Under the Supervision of the United States Pretrial Services Agency; Remaining Two Defendants Already in Custody

TRENTON, N.J. – Criminal charges were unsealed today against 11 individuals who are allegedly part of a conspiracy to distribute significant quantities of heroin in Trenton, U.S. Attorney Craig Carpenito announced.

The complaint unsealed today charges 11 defendants with conspiracy to distribute 100 grams or more of heroin, a Schedule I controlled substance. One of the defendants – Jawaan Foreman – is also charged with distributing cocaine base, a Schedule II controlled substance.

The six defendants arrested today – Alterrick Livingston, Foreman, Darryl Young, Paul Beckford, RJ Beckford, and Larry Murphy - are scheduled to have their initial appearances this afternoon before U.S. Magistrate Judge Douglas E. Arpert in Trenton federal court. One defendant, Devonte McNeil, is serving a sentence in state prison and will have his initial appearance at a later date. Two other defendants, Robert Gbanapolor and Duane Paulino-Escalera, have been previously charged with federal crimes related to the instant complaint and will also have initial appearances at a later date. Gbanapolor has been ordered detained and Paulino-Escalera is on pretrial release.

According to documents filed in this case:

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

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

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

In addition to being charged with conspiracy to distribute heroin, Jawaan Foreman also was charged in the complaint with one count of distributing cocaine base on May 8, 2019.

The drug conspiracy count carries a statutory minimum term of imprisonment of five years, a maximum potential penalty of 40 years in prison, and a maximum fine of $5 million. The count charging Foreman with distribution of cocaine base carries a maximum potential penalty of 20 years in prison and a maximum fine of $1 million.

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

This case was conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership between federal, state and local law enforcement agencies dedicated to identifying and dismantling the most serious drug trafficking, weapons trafficking and money laundering organizations.

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

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

 

                                                                                      Defendants 

Name

Age

Residence

Robert M. Gbanapolor

32

Trenton

Duane Paulino-Escalera

27

Trenton

Jawaan Foreman

35

Trenton

Larry Murphy

36

Trenton

Izae Alford*

20

Trenton

Paul Beckford

31

Trenton

RJ Beckford

21

Trenton

Alterrick Livingston

19

Trenton

Darryl Young

27

Trenton

Devonte McNeil

28

Trenton

Shamir Kelley*

27

Trenton

* denotes at-large

NEWARK, N.J. – A Bronx, New York, man today admitted his role in a scheme to obtain and ultimately cash more than $1 million in fraudulent income tax refund checks issued by the United States, U.S. Attorney Craig Carpenito announced.

Wellington Feliz, 36, pleaded guilty before U.S. District Judge Madeline Cox Arleo in Newark federal court to two counts of an indictment charging him with theft of government property (Count Two) and aggravated identity theft (Count Four).

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

Feliz admitted that he and his conspirators deposited over $1 million in fraudulently obtained income tax refund checks into bank accounts controlled by him.

Stolen Identity Refund Fraud (SIRF) schemes generally share a number of hallmarks. Perpetrators obtain personal identifying information, including Social Security numbers and dates of birth, from unwitting individuals, who often reside in the Commonwealth of Puerto Rico. They complete IRS-1040 tax return forms using the fraudulently obtained information and falsifying wages earned, taxes withheld and other data, always ensuring that fraudulent tax return generates a refund. The perpetrators then direct the U.S. Treasury Department to mail the refund checks to locations they control or can access. In some cases, they bribe mail carriers to remove the refund checks from their mail routes. With the fraudulently obtained refund checks in hand, the perpetrators generate cash proceeds by depositing the checks into bank accounts they control.

Feliz admitted that he knew that the approximately 180 tax refund checks that he and others deposited into bank accounts under his direct control did not belong to him or the company named on the bank account. He admitted to personally withdrawing funds from these accounts and profiting from his role in the scheme. He also admitted that he knew that the checks were issued by the IRS and the U.S. Treasury, and that it was illegal to deposit the tax refund checks and use the proceeds for his own benefit.

Feliz was initially charged with six co-defendants (Luis Pena, Lourdes Ortiz, Raymundo Hernandez, Isaias Hernandez, and Gloria Rivera of the Bronx, New York; and Fausto Bernard of Newark) in a criminal complaint alleging conspiracy to commit theft of government funds, relating to a SIRF scheme that caused more than $2.6 million in losses to the United States government. Feliz and Isaias Hernandez were later charged by indictment with conspiracy to commit theft of government funds, theft of government funds, and aggravated identity theft. After being charged by complaint, Feliz violated the terms of his pretrial release conditions and fled to the Dominican Republic. In April 2019, Feliz was extradited to the District of New Jersey.

All six co-defendants have pleaded guilty to and have been sentenced for their roles in the scheme. One additional conspirator, Angel Fernandez of Newark, has also pleaded guilty to charges regarding his participation in the conspiracy. All have been ordered to pay restitution to victims and forfeiture to the United States.

The theft of government property charge to which Feliz pleaded guilty carries a maximum penalty of 10 years in prison and a fine of the greater of $250,000, twice the gross amount of any pecuniary gain that any persons derived from the offense; or twice the gross amount of any pecuniary loss sustained by any victims of the offense. The aggravated identity theft charge carries a mandatory sentence of two years, which must run consecutively to any term of imprisonment imposed on the theft of government property charge. Sentencing is scheduled for September 24, 2019.

U.S. Attorney Carpenito credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge John R. Tafur; special agents of the U.S. Secret Service, under the direction of Special Agent in Charge Mark McKevitt; special agents of the U.S. Postal Service – Office of the Inspector General, under the direction of Special Agent in Charge Matthew Modafferi; 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 guilty plea.

The government is represented by Assistant U.S. Attorneys Francesca Liquori and Sara F. Merin of the U.S. Attorney’s Office Criminal Division in Newark.

Defense counsel: Laurie M. Fierro Esq., Kinnelon, New Jersey

Iranian National Charged In Scheme to Evade U.S. Sanctions

NEWARK, N.J. – A Morris County, New Jersey, woman today admitted her role in a scheme to illegally smuggle millions of dollars’ worth of aircraft parts from the United States to Iran, U.S. Attorney Craig Carpenito announced.

Joyce Eliabachus, a/k/a “Joyce Marie Gundran Manangan,” 52, of Morristown, New Jersey, pleaded guilty before U.S. District Judge Madeline Cox Arleo to an information charging her with one count of conspiracy to violate the International Emergency Economic Powers Act (IEEPA) in connection with her role in an international procurement network that smuggled over $2 million worth of aircraft components to Iran.

In addition to the guilty plea, a complaint was unsealed today in New Jersey against Peyman Amiri Larijani, 33, a citizen and resident of Iran charging him with one count each of conspiracy to violate Iranian Transactions and Sanctions Regulations (ITSR), conspiracy to commit money laundering, and conspiracy to smuggle goods from the United States. Larijani was also charged in U.S. District Court for the District of Columbia in two separate indictments unsealed June 4, 2019.

The guilty plea by Eliabachus and the charges unsealed against Larijani follow a joint investigation by the U.S. Department of Homeland Security, Homeland Security Investigations, and the U.S. Department of Commerce, Office of Export Enforcement.

“Eliabachus and others allegedly ran an international smuggling ring that shipped $2 million in aircraft parts to multiple Iranian airlines, including a company that has provided financial, material, and technological support to the Islamic Revolutionary Guard Corps,” U.S. Attorney Carpenito said. “This arrest, which was made possible by a close collaboration between our office and our partners at Homeland Security Investigations and the Office of Export Enforcement, has snuffed out another source of funds and goods to overseas entities that may endanger our national and economic security.”

“Today’s action is the result of outstanding collaborative efforts by the Office of Export Enforcement, the Justice Department, and Homeland Security Investigations,” Special Agent in Charge Jonathan Carson of the Office of Export Enforcement said. “This arrest will cut-off a key supplier to a proliferation network which illegally sold U.S. origin items to Iran. Violations such as these jeopardize national security and undermine U.S. foreign policy. We will continue to vigorously pursue violators wherever they may be.”

“For over two years, Eliabachus illegally engaged in aircraft component sales to Iran, a nation listed by the United States as a state sponsor of terrorism,” Brian Michael, HSI Newark Special Agent in Charge, said. “This potentially endangered U.S. security, particularly as one of the Iranian companies sold to does business with the Iranian Revolutionary Guard, a military unit tied to terrorist acts around the world. As protectors of the homeland, HSI is proud to have worked with other government agencies to have exposed this dangerous network.”

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

Eliabachus, Larijani and others were part of an international procurement network that surreptitiously acquired large quantities of aircraft components from United States-based manufacturers and vendors and unlawfully exported them to entities in Iran using freight-forwarding companies in the United Arab Emirates (UAE) and Turkey.

Eliabachus was the principal officer and operator of Edsun Equipments LLC, a purported New Jersey-based aviation parts trading company run out of her Morristown residence. Larijani was the owner of an Iran-based procurement firm and served as operations and sales manager of a network of supply and engineering companies in Tehran, Iran, and Istanbul, Turkey.

From May 2015 through October 2017, Eliabachus, Larijani, and their conspirators facilitated at least 49 shipments containing 23,554 license-controlled aircraft parts from the United States to Iran, all of which were exported without the required licenses.

Eliabachus conspired with Larijani, whose international network helped initiate the purchase of United States-origin aircraft components on behalf of Larijani’s clients in Iran. The network’s client list included Iranian airline companies, several of which have been officially designated by the United States as a threat to national security, foreign policy, or economic interests. One company, Mahan Air Co., has been subject to sanctions by the United States for providing financial, material and technological support to the Islamic Revolutionary Guard Corps-Qods Force (IRGC-QF), and allegedly ferrying arms and reinforcements to designated terrorist groups such as Hezbollah and Hamas.

Eliabachus used her company to finalize the purchase and acquisition of the requested components from the various United States-based distributors. She repackaged and shipped the components to shipping companies in the UAE and Turkey, where Larijani and other Iranian conspirators directed the components to locations in Iran.

In order to obscure the extent of the network’s procurement activities, Eliabachus routinely falsified the true destination and end-user of the aircraft components she acquired. She also falsified the true value of the components being exported in order to avoid filing export control forms, which further obscured the network’s illegal activities from law enforcement.

The funds for the illicit transactions were obtained from the Iranian purchasers, funneled through Turkish bank accounts held in the names of shell companies controlled by the Iranian conspirators. The money was ultimately transferred into one of Edsun Equipments’ accounts in the United States. The network’s creation and use of multiple bank accounts and shell companies abroad was intended to conceal the true sources of funds in Iran, as well as the identities of the Iranian entities who were receiving U.S. aircraft components.

The count of conspiracy to violate IEEPA, to which Eliabachus pleaded guilty, carries a maximum potential of five years in prison and a $250,000 fine. Sentencing is scheduled for Sept. 24, 2019.

The counts against Larijani are punishable as follows: conspiracy to violate the ITSR carries a maximum penalty of 20 years in prison and a $1 million fine; conspiracy to commit money laundering carries a maximum penalty of 20 years in prison and a $500,000 fine; conspiracy to smuggle goods carries a maximum penalty of five years in prison and a $250,000 fine. The charges against Larijani are only allegations, and he is presumed innocent unless and until proven guilty.

U.S. Attorney Carpenito credited special agents of Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Brian Michael in Newark, and the U.S. Department of Commerce, Bureau of Industry and Security, Office of Export Enforcement, under the direction of Special Agent in Charge Jonathan Carson in New York, with the investigation.

The government is represented by Assistant U.S. Attorneys Dean C. Sovolos of the U.S. Attorney’s Office National Security Unit, and Sarah Devlin of the office’s Asset Recovery and Money Laundering Unit, with assistance from Trial Attorney David Recker of the National Security Division’s Counterintelligence and Export Control Section.

Defense counsel: Eliabachus: John Yauch Esq., Assistant Federal Public Defender, Newark

NEWARK, N.J. – A Hudson County, New Jersey, man was arrested today and charged with possession with intent to distribute heroin and cocaine, U.S. Attorney Craig Carpenito announced.

Hason Armfield, 41, of Jersey City, New Jersey, is charged by complaint with one count of possession with intent to distribute 100 grams or more of a mixture and substance containing a detectable amount of heroin and one count of possession with intent to distribute a mixture and substance containing a detectable amount of cocaine. He appeared today before U.S. Magistrate Judge Cathy L. Waldor in Newark federal court and was detained.

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

An authorized search of Armfield’s residence revealed more than 100 grams of heroin, approximately 200 grams of cocaine, drug paraphernalia, and U.S. currency.

The possession with intent to distribute 100 grams or more of heroin has a minimum sentence of five years in prison, a maximum sentence of 40 years in prison, and a $5 million fine. The possession with intent to distribute cocaine has a maximum sentence of 20 years in prison and a $1 million fine.

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

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

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

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

Defense counsel: Kathleen M. Theurer Esq., Jersey City

NEWARK, N.J. – A Middlesex County, New Jersey, woman was arrested today for allegedly orchestrating a $1.7 million bank fraud scheme that involved writing fraudulent business checks, U.S. Attorney Craig Carpenito announced.

Tammy Martinez, 46, of South Amboy, New Jersey, is charged by complaint with one count of bank fraud. Federal agents arrested Martinez this morning; she is scheduled to appear this afternoon before U.S. Magistrate Judge Cathy L. Waldor in Newark federal court.

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

From January 2014 through March 2019, Martinez served as an office manager and bookkeeper for a company in Newark. Beginning in January of 2014, Martinez used her position to issue fraudulent company checks made payable to herself or cash and forged the signature of her manager on the checks. Martinez then converted the fraudulent company checks into cash at bank branches in New Jersey. Martinez’s bank fraud scheme resulted in more than $1.7 in losses.

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

U.S. Attorney Carpenito credited special agents of the U.S. Attorney’s Office, under the direction of Supervisory Special Agent Thomas Mahoney in Newark, and the Newark Police Department, under the direction of Public Safety Director Anthony F. Ambrose, with the investigation leading to today’s arrest.

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

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

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

NEWARK, N.J. – A Hudson County, New Jersey, woman formerly employed by the Hudson County Office on Aging was charged today with accepting bribes for referring patients in need of home health care aides, U.S. Attorney Craig Carpenito announced.

Myrtha Nicolas, 61, of Jersey City, New Jersey, was charged by complaint with one count of extortion under color of official right. She made her initial appearance before U.S. Magistrate Judge Cathy L. Waldor in Newark federal court today and was released on $100,000 unsecured bond.

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

The Hudson County Office on Aging is an agency of the N.J. Division of Disability Services (DDS) under the State of New Jersey’s Department of Human Services. The DDS works to streamline access to services and information designed to promote and enhance independent living for individuals with disabilities. Included among the services coordinated by DDS were Managed Long Term Services and Supports (MLTSS), whether for an individual living at home, an assisted living facility, or a nursing home. 

As a referral coordinator for the Office on Aging, Nicolas exercised control over the coordination and assignment of patients with disabilities in need of home health care services to companies that provide home health care aides.

In June of 2016, Nicolas was approached by a confidential witness (the “CW”) who was a self-employed executive of a home health care company. Nicolas agreed to help refer patients to the CW and agreed to accept $500 dollars per patient she referred to the CW’s company. 

On Aug. 4, 2016, Nicolas accepted a payment of $600 for the referral of a patient. The CW complained that the CW was forced to redirect the patient to another health care company because the patient proved difficult, prompting Nicolas to assure the CW that the CW “will get the easy ones,” in the future. On Jan. 23, 2017, Nicolas accepted another $600 cash payment for a patient referral. Nicolas confirmed that she had previously received gift cards from the CW years earlier, but expressed no preference whether future payments from the CW would be in cash or gift cards.  On Oct. 17, 2017, Nicolas accepted a final corrupt payment of $1,000 from the CW for patient referrals, promising the CW that in terms of future patients, “whatever I have, you’ll have.”

The extortion under color of official right charge carries a maximum potential penalty of 20 years in prison and a fine of up to $250,000 or twice the gross pecuniary gain or loss.

U.S. Attorney Craig Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie, with the investigation leading to the charges. 

The government is represented by Assistant U.S. Attorney Mark J. McCarren of the Special Prosecutions 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

 

NEWARK, N.J. – A Riverside, California, man today admitted transporting large amounts of heroin and fentanyl from California to New Jersey for distribution in New Jersey, U.S. Attorney Craig Carpenito; Ray Donovan, Special Agent in Charge of the U.S. Drug Enforcement Administration, New York Division; New York City Police Commissioner James P. O’Neill; Keith M. Corlett, Acting Superintendent of the New York State Police; and Angel M. Melendez, Special Agent in Charge, Homeland Security Investigations, New York Field Office, announced.

Joselito Colindres, 42, pleaded guilty before U.S. District Court Judge William J. Martini in Newark federal court to an information charging him with one count of conspiracy to distribute and possess with intent to distribute over one kilogram of heroin and over 400 grams of fentanyl.

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

On Oct. 21, 2018, law enforcement officers learned that Colindres and Nester Estuardo Ruano Gutierrez were driving a tractor-trailer containing narcotics from California to New Jersey and elsewhere. After a lawful search of the tractor trailer, law enforcement officers found boxes of narcotics, including approximately 10 kilograms of heroin and four kilograms of fentanyl. Colindres admitted in court that these narcotics were intended for sale in and around New Jersey.

The count of conspiracy to distribute and possess with intent to distribute over one kilogram of heroin and 400 grams of fentanyl carries a maximum penalty of life imprisonment, a mandatory minimum term of 10 years in prison and a $10 million fine. Sentencing is scheduled for Oct. 10, 2019. Gutierrez has pleaded guilty and is awaiting sentencing.

U.S. Attorney Carpenito credited the New York Strike Force, a crime-fighting unit comprising federal, state and local law enforcement agencies supported by the Organized Crime Drug Enforcement Task Force (OCDETF) and the New York/New Jersey High Intensity Drug Trafficking Area (HIDTA), with the investigation leading to today’s guilty plea.

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

The government is represented by Assistant U.S. Attorney Lauren E. Repole of the U.S. Attorney’s Office’s Organized Crime Drug Enforcement Task Force (OCDETF), Newark. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.

Defense counsel: Candace Hom Esq., Assistant Federal Public Defender, Newark

NEWARK, N.J. – A Hoboken-based accountant today admitted failing to pay more than $914,000 in taxes on income generated from his accounting firm and various rental properties he owned, U.S. Attorney Craig Carpenito announced.

Louis Picardo, 64, of Hoboken, New Jersey, pleaded guilty before U.S. District Judge Stanley R. Chesler to one count of an information charging him with federal income tax evasion.
According to documents filed in this case and statements made in court:

Picardo served as the tax collector in Hoboken between 1973 and 2008 and was a partner in Cannarozzi & Picardo LLC, a Hoboken-based accounting firm. Picardo also was a member of multiple entities (the “Picardo Entities”) that managed both commercial and residential properties in Hudson County.

Picardo failed to report $3,725,853 in taxable income that he collected from Cannarozzi & Picardo and the Picardo Entities on federal income tax returns he filed with the IRS for the tax years 2012 to 2015, resulting in a tax loss to the United States of $914,908.

The tax evasion charge is punishable by a maximum penalty of five years in prison and potential fine of $250,000 or twice the gross gain or loss from the offense. Sentencing is scheduled for Sept. 25, 2019.

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

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

Defense counsel: Peter Willis Esq., Jersey City

Alleged Enterprise Leader Charged with Three Murders

NEWARK, N.J. – Five alleged members of a large-scale narcotics enterprise were charged for their respective roles in several murders, firearms offenses and conspiracy to distribute illegal drugs, U.S. Attorney Craig Carpenito announced today.

Michael Healy, 38, of Montclair, New Jersey, the alleged leader of the enterprise; and Leevander Wade, 39; Ali Hill, 26; Thomas Zimmerman, 23; and Tyquan Daniels, 23; all of East Orange, New Jersey were charged in a 12-count superseding indictment with violations of the Racketeer Influenced and Corrupt Organizations Act (RICO), murder, drug conspiracy and related charges. (See chart below.)

“Today’s indictment charges Michael Healy and his fellow gang members with committing murders and other acts of violence on the streets of New Jersey to further their drug trafficking enterprise,” U.S. Attorney Craig Carpenito said. “The indictment alleges that they murdered a witness against them – and an innocent person they mistook for that witness – and anyone else they believed posed a threat to their illegal business. Prosecuting dangerous individuals like these is one of this Office’s highest priorities.”

“According to the indictment, these defendants were part of a murderous drug trafficking organization delivering drugs across the nation from west coast to east,” FBI-Newark Special Agent-in-Charge Gregory W. Ehrie said. “Keeping the public safe is a primary responsibility of the FBI. When violent criminals come in to our communities to destroy our quality of life, we will take action to get them off our streets and protect our neighbors.”

Healy and Wade are charged with three murders, including the murder of a federal informant. Zimmerman and Daniels are charged in two of the murders, including the federal informant, and Hill is charged in the murder of the federal informant only. All three of the murder counts charged in the superseding indictment are eligible for the federal death penalty upon conviction.

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

In February 2018, having found out that one of his conspirators, identified in the indictment as “A.S.,” was cooperating with law enforcement by providing information against the Healy drug trafficking enterprise (DTE), Healy ordered members of the Bloods in East Orange to kill “A.S.” On Feb. 3, 2018, in Bloomfield, New Jersey, Zimmerman and Daniels allegedly shot and killed Victim-1, an innocent bystander they mistook for “A.S.” Realizing they killed the wrong person, members of the Healy DTE then shot and killed “A.S” on March 12, 2018, in Bloomfield.

On April 6, 2018, believing that another member of the enterprise – identified in the indictment as “J.C.” – might also be cooperating with law enforcement, Healy allegedly shot and killed “J.C.” in Newark.

Healy’s DTE operated in and around Newark beginning in approximately 2012. While incarcerated in the Maryland state corrections system between 2003 and 2012, Healy became a member of the Tree Top PIRU set of the Bloods street gang. After his release from prison in April 2012, Healy formed and led the Healy DTE, a large and sophisticated drug distribution organization that obtained, transported and distributed large amounts of cocaine, heroin, fentanyl and marijuana. Healy used his leadership status in the Tree Top PIRU Bloods to assist him with obtaining suppliers, recruiting and controlling enterprise members, and otherwise conducting the Healy DTE’s operations.

The Healy DTE transported multi-kilogram quantities of controlled substances from California to New Jersey by various means, including private aircraft, vehicles with hidden secret compartments, and the U.S. Postal Service. The Healy DTE then processed and repackaged the controlled substances at various “stash houses” in New Jersey. The Healy DTE distributed some of the controlled substances in New Jersey, including through Bloods gang members in East Orange. Given his leadership status in the Bloods, his reputation for violence, and his supply of controlled substances, Healy exercised control over two local Bloods gang sets in East Orange: the Mob PIRUs and the Brick City Brims. The Healy DTE also transported some of the controlled substances from New Jersey to Maryland for further distribution.

The counts in the superseding indictment carry the following maximum potential penalties:

Count

Offense

Defendant(s)

Maximum Penalties

1

Racketeering

All defendants

Life in prison; $250,000 fine

2

Racketeering Conspiracy

All  defendants

Life in prison; $250,000 fine

3

Murder in Aid of Racketeering (Victim-1 Murder)

Healy, Wade,

Zimmerman and Daniels

Life in prison or death penalty; $250,000 fine

4

Use of Firearm in Furtherance of Violent Crime (Victim-1 Murder)

Healy, Wade,

Zimmerman and Daniels

Life in prison; $250,000 fine

5

Murder in Aid of Racketeering (“A.S.” Murder)

All defendants

Life in prison or death penalty; $250,000 fine

6

Conspiracy to Murder a Federal Witness (“A.S.” Murder)

All defendants

Life in prison or death penalty; $250,000 fine

7

Use of Firearm in Furtherance of Violent Crime (A.S. Murder)

All defendants

Life in prison; $250,000 fine

8

Murder in Aid of Racketeering (J.C. Murder)

Healy and Wade

Life in prison or death penalty; $250,000 fine

9

Use of Firearm in Furtherance of Violent Crime (J.C. Murder)

Healy and Wade

Life in prison; $250,000 fine

10

Felon in Possession of a Firearm

Healy

10 years in prison; $250,000 fine

11

Felon in Possession of a Firearm

Daniels

10 years in prison; $250,000 fine

12

Conspiracy to Distribute Controlled Substances

All defendants

Life in prison; $10,000,000 fine

U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie; and the Newark Police Department, under the direction of Public Safety Director Anthony Ambrose, with the investigation leading to the indictment. He also thanked the Essex County Prosecutor’s Office; the Union County Prosecutor’s Office, East Orange Police Department; Montclair Police Department, and the Maryland Department of Public Safety and Correctional Services, Intelligence and Investigative Division.

The government is represented by Senior Trial Counsel Robert L. Frazer and Special Assistant U.S. Attorney Naazneen Khan of the U.S. Attorney’s Office’s Violent Crimes Unit.

The charges in the superseding indictment are merely allegations, and the defendants are each presumed to be innocent unless and until convicted.

Defense counsel: Healy: Anthony Pope Esq., Newark, Stephen Turano Esq., Newark, Thomas Ambrosio Esq. Lyndhurst, New Jersey
Wade: Troy Archie Esq., Cinnaminson, New Jersey
Hill: Gary Mizzone Esq., Little Falls, New Jersey
Zimmerman: Henry Klingeman Esq., Newark
Daniels: Thomas Ashley Esq., Newark

Defendant Allegedly Inflated Company’s Revenue to Defraud Investors

NEWARK, N.J. – The CEO of a publicly traded commodities trading company has been indicted for allegedly orchestrating an accounting scheme to defraud investors and others by recognizing more than $66 million in fake revenue in the company’s public filings, U.S. Attorney Craig Carpenito announced today.

Venkata Meenavalli, 49, of India, was charged by indictment with securities fraud.

According to documents filed in this case: In 2017 and 2018, Meenavalli and others orchestrated a multimillion-dollar accounting fraud relating to Longfin Corp., a publicly traded company purportedly engaged in sophisticated commodities trading and so-called “cryptocurrency” transactions, including “blockchain-empowered solutions.” In fact, Longfin did not engage in any revenue-producing cryptocurrency transactions, and did not use the blockchain to empower any solutions. Longfin reported as revenue millions of dollars of commodities transactions, which were actually sham events between Longfin and separate entities Meenavalli controlled, using phony bills of lading and other fraudulent documents.

Longfin fraudulently reported in its public filings with the U.S. Securities and Exchange Commission (SEC) more than $66 million of revenue that was never actually earned and should never have been recognized. By including this phony revenue in the company’s public filings, Meenavalli and others made Longfin’s shares more attractive to potential investors.

Longfin’s 2017 Form 10-K (a required annual report to the SEC) claimed that its primary source of revenue was from “structured trade finance,” including “the sale of physical commodities.” Longfin falsely reported million in accounts receivable in purported physical commodity sales that never occurred. In fact, Meenavalli allegedly owned or controlled several entities that purportedly did business with Longfin, and did not disclose those relationships to Longfin’s shareholders or the investing public.

The count of securities fraud with which Meenavalli is charged carries a maximum potential penalty of 20 years in prison and a $5 million fine.

Separately, the U.S. Securities and Exchange Commission today filed a new fraud action against Longfin and Meenavalli for falsifying the company’s revenue and, together with a former Longfin consultant, for fraudulently securing the company’s listing on Nasdaq.

U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie, with the investigation leading to charges announced today. He also thanked the U.S. Securities and Exchange Commission in Washington, D.C., and Stephanie Avakian and Steven Peikin, co-directors of the Division of Enforcement, for the assistance of the Enforcement staff.

The government is represented by Assistant U.S. Attorney Catherine Murphy of the U.S. Attorney’s Office’s Economic Crimes Unit and Zach Intrater, Executive Assistant U.S. Attorney.

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

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

Jeffrey Laino, 37, of Washington Township, New Jersey, was arrested at his home. He is charged by complaint with one count of distributing child pornography. Laino made his initial appearance before U.S. Magistrate Judge Cathy L. Waldor today in Newark federal court.

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

In January 2019, an undercover law enforcement officer conducted an online session using a publicly available peer-to-peer (P2P) program, which allows internet users to trade digital files. During this session, a user shared multiple files of featuring images of child sexual abuse from an internet address traced to Laino’s residence.

In February 2019, law enforcement officers received information from a victim living in Ohio who was approached on the social media application Snapchat by an individual using a screen name that included “Jeff L.” In chats with the Ohio victim, “Jeff L.” stated that he was from New Jersey and had obtained nude pictures of the Ohio victim – taken when she was 14 to 15 years of age – by downloading them from the Internet. The IP address of “Jeff L.” Snapchat user was assigned, at the approximate times the chats took place, to an account located at Laino’s residence.

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

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

The government is represented by Executive Assistant U.S. Attorney Zach Intrater of the U.S. Attorney’s Office in Newark.

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

ALBUQUERQUE – Garrith Bitsilly, 32, of Toadlena, N.M., appeared in federal court yesterday on charges of aggravated sexual abuse and abusive sexual contact in Indian Country. 

According to a criminal complaint, Bitsilly allegedly committed numerous acts of sexual abuse against the victim, who was less than 12 years old, over the course of about seven months in 2014.  The victim was staying at Bitsilly’s home in San Juan County during this time while the victim’s mother was deployed to Afghanistan with the military.  Bitsilly is an enrolled member of the Navajo Nation. 

Criminal complaints are merely accusations.  A defendant is presumed innocent until proven guilty.   Bitsilly is currently on release to a halfway house pending trial.  He faces from 30 years to life in prison if convicted of aggravated sexual abuse.  Bitsilly faces up to life in prison if convicted of abusive sexual contact.

The Farmington office of the FBI investigated this case.  Assistant U.S. Attorney Elisa C. Dimas is prosecuting the case.

NEWARK, N.J. – Two Bergen County, New Jersey, men have admitted their respective roles in a scheme to defraud financial institutions and others, U.S. Attorney Craig Carpenito announced today.

Steve Young Kang, a/k/a “Steven Young Kang” and “Young Tae Kang,” 64, of Ridgefield, New Jersey, and Young Jin Son, a/k/a “Joshua Son,” 49, of Norwood, New Jersey, pleaded guilty on May 30, 2019, before U.S. District Judge William J. Martini in Newark federal court to separate informations charging each defendant with one count of bank fraud and one count of wire fraud.

According to documents filed in these cases and statements made in court:

Kang, Son and others fraudulently induced mortgage lenders to participate in “short sale” transactions. In a typical short sale transactions, a financial institution agrees to allow a house owner in financial distress to sell his or her home for less than they owe on their mortgages. Such transactions are called short sales because the market value of the house is less than the amount owed by the house owner and the lender agrees to accept a payment “short” of the amount owed by the house owner.

Kang, a real estate broker and agent, admitted to a scheme in which, from June 2013 to January 2017, he sold his own properties and recruited others to sell properties in short sales to a co-schemer, Mehdi Kassai, who was able to obtain the properties for substantially less than the properties were actually worth through false documents, straw buyers, cosmetic damage to properties, and restricting the ability of others to bid on and buy those properties. Kassai then sold many of those properties to third-parties at a substantial profit. Kang defrauded financial institutions and others of $2.7 million in this manner.

Son, a real estate broker and agent, admitted recruiting others to sell properties in short sales to Kassai, who obtained the properties for substantially less than they were actually worth through false documents, straw buyers, cosmetic damage to properties, and restricting the ability of others to bid and buy those properties. Kassai sold many of those properties to third-parties at a substantial profit. Son defrauded financial institutions and others of $1.9 million in this manner.

The bank fraud and wire fraud charges each carry a maximum potential statutory penalties of 30 years in prison and a $1 million fine. Kang and Son have both agreed to forfeit the proceeds of the scheme. Sentencing for both defendants is scheduled for Oct. 1, 2019. Kassai previously pleaded guilty to his role in the scheme and is awaiting sentencing.

U.S. Attorney Carpenito credited the Bergen County Prosecutor’s Office, under the direction of Prosecutor Mark Musella; special agents of the Federal Housing Finance Agency, Office of Inspector General, under the direction of Special Agent in Charge, Robert Manchak; and special agents of the U.S. Department of Homeland Security Investigations, under the direction of Special Agent in Charge Brian Michael, with the investigation leading to the guilty pleas.

The government is represented by Senior Trial Counsel Andrew Leven of the Healthcare & Government Fraud Unit of the U.S. Attorney’s Office, District of New Jersey, and Special Assistant U.S. Attorneys Charlie Divine and Kevin Di Gregory of the Federal Housing Finance Agency, Office of Inspector General.

Second Defendant also Pleads Guilty to Distributing Multiple Controlled Substances as Part of Conspiracy

TRENTON, N.J. – A Trenton man today admitted his leadership role in a significant drug trafficking conspiracy that distributed more than one kilogram of heroin in Trenton and the surrounding area, and also admitted possessing firearms in furtherance of the drug conspiracy, U.S. Attorney Craig Carpenito announced today.

Jakir Taylor, a/k/a “Jak,” 28, pleaded guilty before Chief U.S. District Judge Freda L. Wolfson in Trenton federal court to two counts of a superseding indictment charging him with conspiracy to distribute and possess with intent to distribute one kilogram or more of heroin (Count One), and possessing and conspiring to possess one or more firearms in furtherance of a drug trafficking crime (Count Seven).

Another member of the conspiracy, Alonzo Leary, a/k/a “J-Buck,” a/k/a “Buck,” 37, of Trenton, pleaded guilty May 30, 2019, before Judge Wolfson to an information charging him with one count of conspiracy to distribute and possess with intent to distribute multiple controlled substances, including heroin, oxycodone, and alprazolam.

In October 2018, Taylor, Leary, and 24 other members of a drug trafficking conspiracy operating in Trenton were charged by criminal complaint with conspiracy to distribute heroin. Taylor and others also were charged with additional firearms offenses. On April 11, 2019, a grand jury returned a nine-count superseding indictment charging Taylor and eight other defendants with conspiracy to distribute one kilogram or more of heroin and various other drug and firearm offenses. Of the 26 defendants charged in the criminal complaint, Taylor is the eighth defendant to plead guilty, and Leary is the ninth. The charges in the superseding indictment and the criminal complaint are currently pending against the 17 remaining defendants.

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

From as early as October 2017 to October 2018, the defendants and others engaged in a large narcotics conspiracy that operated in the areas of Martin Luther King Boulevard, Sanford Street, Middle Rose Street, Southard Street, Hoffman Avenue, and Coolidge Avenue in Trenton, and which sought to profit from the distribution of heroin and numerous other controlled substances. Through the interception of telephone calls and text messages pursuant to court-authorized wiretap orders, controlled purchases of heroin, the use of confidential sources of information, and other investigative techniques, law enforcement learned that Taylor and Jerome Roberts obtained regular supplies of hundreds of “bricks” of heroin from defendant David Antonio, whom they referred to as “Papi.” Intercepted communications between and among Taylor, Roberts, Antonio, and other conspirators revealed that Taylor and Roberts agreed to obtain from Antonio a “motherlode” supply of as many as 1,500 bricks – approximately 1.5 kilograms of heroin – in a single delivery. Taylor said that he intended to “flood the streets” of Trenton with this large supply. Taylor also admitted that he and his conspirators possessed at least one firearm to assist his drug trafficking operations, and on multiple occasions during the conspiracy Taylor actively sought to obtain additional firearms from other sources.

Intercepted telephone communications revealed that Leary participated in the drug trafficking as a close associate of Omar Council, Brian Phelps, Gary Ausmore, and other members of the conspiracy. These communications revealed that Leary participated in the conspiracy by distributing quantities of heroin, oxycodone, and alprazolam (commonly known as Xanax) to other narcotics dealers and end users.

The drug conspiracy count to which Taylor pleaded guilty carries a statutory mandatory minimum term of imprisonment of 10 years, a maximum potential penalty of life in prison, and a maximum fine of $10 million. The firearms count to which Taylor pleaded guilty carries a statutory mandatory minimum term of five years in prison and a maximum potential penalty of life years in prison, and must be served consecutive to the sentence imposed on the drug conspiracy count. The drug conspiracy count to which Leary pleaded guilty carries a statutory maximum term of 20 years in prison and a maximum fine of $1 million. Taylor’s sentencing is scheduled for Oct. 1, 2019, and Leary’s sentencing is scheduled for Sept. 4, 2019.

U.S. Attorney Carpenito credited special agents of the FBI, Newark Division, Trenton Resident Agency, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark; special agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Newark Division, Trenton Satellite Office, under the direction of Special Agent in Charge Charlie J. Patterson; officers of the Trenton Police Department, under the direction of Police Director Sheilah Coley; officers of the Princeton Police Department, under the direction of Chief of Police Nicholas Sutter; officers of the Ewing Police Department, under the direction of Chief of Police John P. Stemler III; officers of the Burlington Township Police Department, under the direction of Police Director Bruce Painter; and detectives of the Burlington County Prosecutor’s Office, under the direction of Prosecutor Scott A. Coffina, with the investigation leading to today’s guilty pleas.

He also thanked officers of the N.J. State Police, under the direction of Superintendent Col. Patrick J. Callahan; detectives of the Mercer County Prosecutor’s Office, under the direction of Prosecutor Angelo Onofri; officers of the Mercer County Sheriff’s Office, under the direction of Sheriff John A. Kemler; and members of the N.J. State Board of Parole for their assistance in the case.

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

This case was conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF) and the FBI’s Greater Trenton Safe Streets Task Force, a partnership between federal, state and local law enforcement agencies to enhance the identification, apprehension, and prosecution of individuals involved in gang-related activities, violent crime, and drug distribution in and around the greater Trenton area. 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 against the remaining defendants are merely accusations and those defendants are presumed innocent unless and until proven guilty.

Defense counsel: Taylor: Jerome A. Ballarotto Esq., Trenton
Leary: Robert B. Haney Esq., West Windsor, New Jersey

U.S. Attorney’s Office, N.J. Division of Criminal Justice, N.J. State Police, Trenton Police, Mercer County Prosecutor’s & Sheriff’s Offices, ATF, DEA & FBI Partner to Target the Most Violent Offenders

TRENTON – Citing two mass shootings in Trenton that left one dead and 15 others wounded during Memorial Day Weekend, U.S. Attorney Craig Carpenito and N.J. Attorney General Gurbir S. Grewal today announced a new collaborative initiative to fight violence in Trenton involving the U.S. Attorney’s Office, the N.J. Division of Criminal Justice, N.J. State Police, Trenton Police Department, Mercer County Prosecutor’s Office, Mercer County Sheriff’s Office, Bureau of Alcohol, Tobacco, Firearms & Explosives, U.S. Drug Enforcement Administration, and FBI.

While the announcement follows the violent weekend in the capital city, U.S. Attorney Carpenito and Attorney General Grewal noted that the partnering agencies have been developing the Trenton Violent Crime Initiative (VCI) for several months.

“We know that partnering with state and local law enforcement works, because we’ve proven it,” U.S. Attorney Carpenito said. “In 2018, for the first time in this office’s history, we simultaneously initiated three Project Safe Neighborhood programs in Newark, Camden and Jersey City. These violent crime initiatives resulted in significant reductions in crime in all three cities. Crime is down 15 percent in Newark from 2017 to 2018 and violent crime was down 18 percent in Camden from 2017 to 2018. Crime in both cities are at a 50-year low. In addition, shooting incidents are down 69 percent in Jersey City between comparable periods in 2018 and 2019. We intend to work closely with Attorney General Grewal, and all our federal, state and local partners with the goal of achieving similar results.”

“We are committed to using every tool at our disposal to fight violence in Trenton, which means collaborating across all levels of law enforcement and sharing intelligence and resources through our new Violent Crime Initiative,” said Attorney General Grewal. “The time to act is now, before more lives are lost. We cannot stop every shooting, but we want city residents to know that we stand with them, and we will work with the Trenton Police, the County Prosecutor’s Office, and all of our partners to arrest the gun-toting criminals who are bringing violence and fear to their neighborhoods.”

The Trenton VCI is based on a model that has been successfully deployed in Newark and Jersey City by the U.S. Attorney’s Office, N.J. State Police, and law enforcement partners. Leaders from the participating agencies will meet regularly to review intelligence regarding the most violent offenders in Trenton, their accomplices, crime trends, and potential leads that can be acted on by the partnering agencies. In analyzing intelligence, the partnering agencies will look at all of those involved in shootings, including victims as well as shooters, because victims in many cases may be likely participants in future gun violence.

The initiative will rely on intelligence and analysis from the N.J. State Police Regional Operations Intelligence Center (ROIC). The ROIC will work with the Trenton Police Department to identify the top violent offenders and violent crime suspects in Trenton, including gang members, drug dealers, and serial offenders. Federal, state, and county prosecutors will then make determinations regarding which prosecuting agency should pursue potential leads regarding those violent offenders.

Ultimately, the partnering agencies – including state, federal, county and local law enforcement – will use the intelligence and plans developed through the VCI meetings to investigate violent offenders and conduct other law enforcement operations to dismantle and disrupt violent criminal elements in the city, including execution of warrants and crime suppression efforts focused on likely violence “hot spots.”

NEWARK, N.J. – A Hoboken, New Jersey, man today admitted his role in a conspiracy to promote a voter bribery scheme during a municipal election, U.S. Attorney Craig Carpenito announced.

Dio Braxton, 43, pleaded guilty before U.S. District Judge William J. Martini in Newark federal court to an indictment charging him with conspiring with Frank Raia and others to use the mail to promote a voter bribery scheme during the 2013 municipal election in Hoboken.

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

Braxton and others, at Raia’s direction, participated in a scheme to pay certain Hoboken voters $50 each if those voters applied for and cast mail-in ballots in support of Raia’s city council campaign and a rent control referendum that Raia supported. Braxton and others working for Raia provided voters with vote-by-mail applications and then either mailed or delivered the completed applications to the Hudson County Clerk’s office. After the voters completed mail-in ballots, Braxton and others working for Raia either mailed or delivered them to the Hudson County Clerk’s Office.

After the election, Braxton and others handed out $50 checks to voters from an entity hired by Raia’s Political Action Committee. Before handing the checks to voters, Braxton and others working for Raia required the voters to sign declarations stating that they had worked for the campaign. In reality, many of these voters never actually worked for the campaign and these declarations were merely a way for Braxton, Raia, and others to hide the fact that the voters had been paid for their votes.

Braxton faces a maximum penalty of five years in prison and a $250,000 fine. Sentencing is scheduled for Sept. 10, 2019.

Raia was previously indicted on the same charge and is awaiting trial. The charge against him is merely an accusation, and he is presumed innocent unless and until proven guilty.

U.S. Attorney Craig Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, and special agents of the U.S. Department of Housing and Urban Development, Office of the Inspector General, under the direction of Special Agent in Charge Christina Scaringi, with the investigation leading to today’s guilty plea.

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

Defense counsel: Vincent J. LaPaglia Esq., Hoboken