District of New Jersey

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

NEWARK, N.J. – Four people were arrested today in connection in a scheme to defraud banks by using stolen and altered identities to fraudulently obtain credit cards and then using those cards to make over $2.5 million in charges that were never repaid, U.S. Attorney Craig Carpenito announced.

Shahid Akhtar, 42, of Linden, New Jersey; Tassadiq Hussain, 70, of Sayreville, New Jersey; Asif Ali, 39, of Carteret, New Jersey; and Mohammad Mushtaq, 54, of Valley Stream, New York; are each charged by complaint with one count of conspiring to defraud financial institutions. The defendants are scheduled to appear later today before U.S. Magistrate Judge Joseph A. Dickson in Newark federal court.

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

The defendants engaged in a scheme to use stolen and altered identities to obtain credit cards from financial institutions and then use those credit cards to make purchases that they had no intention to repay, leaving the financial institutions to bear the losses.

The defendants and their conspirators used the personally identifying information of actual people, including dates of birth, drivers’ license numbers, and Social Security numbers, to create “synthetic identities,” sometimes by pairing the name and Social Security number of actual person with a fictitious birthdate, and sometimes by pairing the person’s Social Security number with a fictitious name and birthdate. They often used the name and Social Security number of a minor and altered the birthdate to make the identity appear to be that of an adult.

The defendants and their conspirators then used the stolen and synthetic identities to obtain lines of credit, primarily through opening credit card accounts at financial institutions (the “fraud cards”). The fraud cards were maintained in good standing with the financial institutions long enough to establish the creditworthiness of the stolen and synthetic identities. The defendants and their conspirators then “busted out” the fraud cards by making large purchases and never repaying the debts.

The defendants and their conspirators also incorporated and registered in various states numerous purported companies that did little or no legitimate business (the “sham companies”). The sham companies typically reported mailing addresses that were not brick-and-mortar business locations but were in fact “virtual mailboxes” offered by a company that provides mail receiving and forwarding services, as well as virtual office space, for a fee. The defendants and their conspirators used these sham companies to make hundreds of thousands of dollars’ worth of charges to the fraud cards, which were then deposited in bank accounts opened in the sham companies’ names. The defendants and their conspirators then withdrew these funds in cash.

The defendants and their conspirators routinely used “drop addresses” in New Jersey, New York, and elsewhere as the purported mailing addresses for the fraud cards and the sham companies. These drop addresses were typically not residential locations, but rather mailboxes offered for lease for the receipt of mail by a commercial package delivery company. In most cases, the defendants and their conspirators rented these mailboxes using fraudulent identification documents created using stolen and altered identities. The drop addresses were then maintained for the purpose of receiving mail sent in connection with the fraud cards and the sham companies.

The charge of conspiring to defraud financial institutions carries a maximum penalty of 30 years in prison and a $1 million fine, or twice the gross gain or loss from the offense.

U.S. Attorney Carpenito credited special agents of the U.S. Postal Inspection Service, under the direction of Inspector in Charge James Buthorn, with the investigation leading to today’s arrests.

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

The government is represented by First Assistant U.S. Attorney Rachael A. Honig.

NEWARK, N.J. – A Paterson-based contractor today admitted conspiring with a commissioner of the now-defunct Paterson Municipal Utilities Authority (MUA) to steal funds and pay kickbacks in return for obtaining work from the authority, U.S. Attorney Craig Carpenito announced.

Anthony Cacciola, 47, of Waldwick, New Jersey, pleaded guilty before U.S. District Judge Kevin McNulty to an information charging him with one count of conspiracy to commit extortion under color of official right.

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

Cacciola operated a Paterson-based business specializing in fence installation and repair for both commercial and residential properties. In 2012 he was introduced to Erik Lowe, an MUA commissioner from February 2009 through May 2015. In this position, Lowe exercised control over the finances of the MUA, which had been created to manage the hydroelectric plant on the Passaic River in Paterson and manage certain surrounding properties.

Cacciola admitted that Lowe would inflate the dollar amount of the checks Lowe provided to Cacciola for various MUA contracts well beyond the actual value of the services performed. Cacciola admitted that this enabled him to kick back to Lowe thousands of dollars in cash for Lowe’s official assistance in directing work to Cacciola. Near the end of the scheme, Cacciola began accepting MUA checks from Lowe worth thousands of dollars knowing that no job had been, or would be, performed. Cacciola accepted a total of $141,700 in MUA checks from Lowe, out of which Cacciola paid tens of thousands of dollars in cash kickbacks to Lowe.

The count to which Cacciola pleaded guilty carries a maximum potential penalty of 20 years in prison and a $250,000 fine. As part of his plea, Cacciola must pay restitution of $89,900. Sentencing is scheduled for Sept. 23, 2019.

Lowe pleaded guilty on May 30, 2018, before former Chief U.S. District Judge Jose L. Linares to one count of extortion under color of official right involving the same scheme to which Cacciola today pleaded guilty, and one count of conspiracy to commit extortion under color of official right pertaining to a separate fraud/kickback scheme involving Paterson MUA funds with Carnell Baskerville. Lowe is scheduled to be sentenced by Judge McNulty on June 4, 2019. Baskerville was sentenced by Judge Linares on Oct. 23, 2018, to 21 months in prison.

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 today’s guilty plea.

The government is represented by Assistant U.S. Attorney Mark J. McCarren of the U.S. Attorney’s Office’s Special Prosecutions Division in Newark.

Defense counsel: John Bruno Esq., Rutherford, New Jersey

NEWARK, N.J. – A doctor based in Trenton and Delran, New Jersey, was charged today with health care fraud for billing Medicaid and Medicare for in-person services during periods when he was traveling out of state, U.S. Attorney Craig Carpenito announced.

Vedat Obuz, 54, of Merion Station, Pennsylvania, is charged by complaint with one count of health care fraud. Obuz made his initial appearance before U.S. Magistrate Judge Joseph A. Dickson in Newark federal court and was released on $100,000 unsecured bond.

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

Between July 2014 and October 2018, Obuz billed Medicaid for $358,779 and Medicare for $57,396 for patient care that took place when he was traveling and was not present at his medical practice. The medical codes used in the billings indicated that Obuz was the treating physician and the services billed for required him to be physically present to see the patients.

For example, travel records show Obuz was in Tel Aviv, Israel, from Nov. 1-6, 2017. On Nov. 2-4, 2017, Obuz billed Medicare and Medicaid $4,660 for treating approximately 30 patients. Travel records show Obuz was in Istanbul, Turkey, from April 18-22, 2018. On April 19-21, 2018, he billed Medicare and Medicaid $7,770 for treating 53 patients.

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; the FBI’s South Jersey Resident Agency, under the direction of Special Agent in Charge Michael Harpster in Philadelphia; and the Camden County Police Department, under the direction of Chief J. Scott Thomson, with the investigation leading to today’s charges.

The government is represented by Assistant U.S. Attorney Sara F. Merin of the Health Care and Government Fraud Unit of the U.S. Attorney’s Office in Newark.

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

Defense counsel: Ernest E. Badway Esq., Morristown, New Jersey

CAMDEN, N.J. – A Camden man was convicted today of robbing two banks, and attempting to rob a third bank over a 10-day period in July 2018, U.S. Attorney Craig Carpenito announced.

Anthony L. Livingston, 48, was convicted of two counts of bank robbery, and one count of attempted bank robbery following a one-week trial before U.S. District Judge Renee Marie Bumb in Camden federal court. The jury deliberated less than three hours before returning the guilty verdicts.

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

On July 14, 2018, Livingston entered the Gloucester Township PNC Bank wearing sunglasses and a hat. He presented a demand note to the teller and then left the bank with the stolen cash.

On July 24, 2018, Livingston attempted to recruit a homeless man to rob the Stratford PNC Bank on his behalf. Livingston instructed the man on how to rob the bank, gave him a demand note to show to the teller, and drove the man to the bank. The man walked into the bank and told the employee that he had been sent there to rob the bank and that he did not want to do it, and that the bank should call the police because the person who had sent him was waiting for him outside.

Four hours later, Livingston recruited co-defendant Laque Hunter to rob the Collingswood Ocean First bank on his behalf, and drove Hunter to the bank. Hunter robbed the bank with a demand note. Livingston served as the getaway driver, and the two split the proceeds. Hunter pleaded guilty on April 2, 29019, and is awaiting sentencing.

At the time of these crimes, Livingston was on federal supervised release. On July 13, 2018, one day before the first bank robbery, Livingston completed a 220-month term of imprisonment for having robbed eight banks in southern New Jersey in 2000 and 2001.

Each count on which Livingston was convicted carries a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. Sentencing is scheduled for Sept. 5, 2019.

U.S. Attorney Carpenito credited special agents of the FBI-Cherry Hill, under the direction of Special Agent in Charge Michael Harpster in Philadelphia; the Camden County Police Department, under the direction of Chief J. Scott Thomson; the Camden County Prosecutor’s Office, under the direction of Prosecutor Mary Eva Colalillo; the Camden County Sheriff’s Office, under the direction of Sheriff Gilbert “Whip” Wilson; the Collingswood Police Department, under the direction of Chief Kevin J. Carey; the Gloucester Township Police Department, under the direction of Chief W. Harry Earle; and the Stratford Police Department, under the direction of Chief Ronald M. Morello, with the investigation leading to today’s conviction.

The government is represented by Assistant U.S. Attorneys Kristen M. Harberg and Patrick C. Askin of the Camden Office.

Defense counsel: John B. Brennan Esq., Marlton, New Jersey

NEWARK, N.J. – A South Carolina man who participated in the sale of 17 firearms, including five assault rifles, today admitted his role in a scheme to illegally sell weapons in New Jersey, U.S. Attorney Craig Carpenito announced.

Richard Lowman, 30, pleaded guilty before U.S. District Court Judge Claire C. Cecchi in Newark federal court to an information charging him with one count of conspiracy to engage in the unlicensed business of dealing in firearms.   

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

On six different dates between May 2017 and September 2017, Lowman – sometimes accompanied by his uncle, Reginald Moultrie – met with an individual in Newark for the purpose of selling firearms. Lowman personally participated in the sale of an assault rifle on a Newark street in May 2017. During a later transaction in August 2017, Lowman travelled from South Carolina to New Jersey and transported multiple firearms across state lines. Ultimately, six firearms were sold inside a residence in Newark on that occasion.

Seventeen firearms, including five assault rifles, were illegally sold by Lowman and Moultrie over five months. Neither Lowman nor Moultrie had a license to sell firearms.  Moultrie previously pleaded guilty to possession of a firearm after having been convicted of a felony and is currently awaiting sentencing.    

The charge of conspiracy to engage in unlicensed dealing of firearms carries a maximum penalty of five years in prison and a $250,000 fine. Sentencing is scheduled for Nov. 5, 2019. 

U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, and officers of the Newark Police Department, under the direction of Department of Public Safety Director Anthony F. Ambrose, with the investigation leading to today’s guilty plea.

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

Also Discussed Bombing Trump Tower and Israeli Embassy in New York

NEWARK, N.J. – A Somerset County, New Jersey, man was arrested today for attempting to provide material support to Hamas, lying on his application to enlist in the U.S. Army, and making a threat against pro-Israel supporters, U.S. Attorney Craig Carpenito, Assistant Attorney General John C. Demers of the U.S. Department of Justice’s National Security Division, FBI-Newark Special Agent in Charge Gregory W. Ehrie and FBI Assistant Director for Counterterrorism Michael McGarrity announced.

Jonathan Xie, 20, of Basking Ridge, New Jersey, was arrested this morning and is charged by complaint with two counts of attempting to provide material support to a designated terrorist organization, two counts of making false statements, and one count of transmitting a threat in interstate commerce. He is scheduled to appear this afternoon before U.S. Magistrate Judge Mark Falk in Newark federal court.

“Homegrown violent extremists like Xie are a serious threat to national security,” U.S. Attorney Carpenito said. “The actions that he took and planned to take made that threat both clear and present, and we commend our law enforcement partners for working closely with us to stop him before he could carry out his plans to commit violence on American soil. We will continue to do everything in our power to safeguard our country and its citizens from the threat of terrorism, whether that threat comes from abroad or – as here – from within.”

“The FBI remains vigilant in its efforts to protect the public from those who support terrorist groups and ideologies,” Special Agent in Charge Ehrie said. “Thanks to the hard work and determination of our agents and their law enforcement partners on the Joint Terrorism Task Force, this defendant’s further support to terrorism was disrupted and a threat to the safety of our community was averted. This case also illustrates the value of public awareness and participation. When you report suspicious activity, you become a force multiplier in the mission to keep America safe.”

“The FBI is committed to stopping anyone who attempts to assist terrorist organizations or who threatens to commit acts of violence in our communities,” said Assistant Director McGarrity, FBI Assistant Director for Counterterrorism. “The threat from homegrown violent extremists who self-radicalize remains persistent. While more Americans may be familiar with ISIS, we take seriously those who wish to help any designated terrorist organization. I commend the hard work of the Newark Joint Terrorism Task Force on this case.”

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

In April 2019, Xie appeared in an Instagram Live video wearing a black ski mask and stated that he was against Zionism and the neo-liberal establishment. When asked by another participant in the video if he would go to Gaza and join Hamas, Xie stated “yes, If I could find a way.” Later in the video, Xie displayed a Hamas flag and retrieved a handgun. He then stated “I’m gonna go to the [expletive] pro-Israel march and I’m going to shoot everybody.” In subsequent Instagram posts, Xie stated, “I want to shoot the pro-israel demonstrators . . . you can get a gun and shoot your way through or use a vehicle and ram people . . . all you need is a gun or vehicle to go on a rampage . . . I do not care if security forces come after me, they will have to put a bullet in my head to stop me.”

In December 2018, Xie sent $100 via Moneygram to an individual in Gaza who Xie believed to be a member of the Al-Qassam Brigades – a faction of Hamas that has conducted attacks, to include suicide bombings against civilian targets inside Israel. At approximately the same time that Xie sent the money, he posted on his Instagram account “Just donated $100 to Hamas. Pretty sure it was illegal but I don’t give a damn.” In April 2019, Xie sent a link to a website for the Al-Qassam Brigades to an FBI employee who was acting online in an undercover capacity. Xie described the website as a “Hamas” website and stated he had previously sent a donation to the group. Xie then sent screenshots of the website to the undercover employee and demonstrated how to use a new feature on the website that allows donations to be sent via Bitcoin. On or about April 26, 2019, Xie sent a donation of approximately $20 in Bitcoin (including transaction fees) via the website as a test to see whether the Bitcoin feature worked.

In February 2019, Xie stated that he wanted to join the U.S. Army “to learn how to kill… So I can use that knowledge.” He stated “Idk [I don’t know] if I pass the training…If I should do lone wolf.That is why I have to learn military techniques from the Army . . . ” Consistent with his plan to join the U.S. Army, Xie completed Security Clearance Application for National Security Positions in February 2019. He answered “no” to the question “Have you EVER associated with anyone involved in activities to further terrorism?” An error occurred in processing Xie’s application and Xie was required to complete the application a second time approximately ten days later. He again answered “no” to the question.

The investigation revealed additional social media accounts for Xie, including a YouTube account which contained, among other things, a playlist containing videos, many of which advocated or propagandized Soldiers for Allah, the war in Syria, Hezbollah (a foreign terrorist organization), and the Houthi movement in Yemen, as well as support for Bashar al Assad, Saddam Hussein, and North Korea.

Around April 20, 2019, FBI surveillance observed Xie outside of the Trump Tower building in New York City. Shortly thereafter, according to Instagram records, Xie posted two photos to his Instagram account: One with the words “I want to bomb Trump Tower" imposed over the building image and the other with the words “[S]hould I bomb Trump Tower,” a “Yes/No” poll, and an emoji of a bomb imposed over the Trump Tower building image. Xie subsequently posted on Instagram, “Okay, so I went to NYC today and passed by Trump Tower and then I started laughing hysterically . . . shit I forgot to visit the Israeli embassy in NYC . . .i want to bomb this place along with trump tower.”

U.S. Attorney Carpenito credited special agents of the FBI and task force officers of the Joint Terrorism Task Force, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark; and the U.S. Department of Defense, Army Counterintelligence, 902d Military Intelligence Group, with the investigation leading to today’s arrest. He also thanks the U.S. Secret Service for its assistance with the case.

Each count of attempt to provide material support to a designated terrorist organization carries a maximum penalty of 20 years in prison and a $250,000 fine. Each count of making false statements related to international and domestic terrorism carries a maximum penalty of eight years in prison and a $250,000 fine. The count of transmitting a threat in interstate commerce carries a penalty of five years in prison and a $250,000 fine.

The government is represented by Assistant U.S. Attorney Joyce M. Malliet of the U.S. Attorney’s Office National Security Unit and Trial Attorney Bridget Behling of the U.S. Department of Justice’s Counterterrorism Section of the National Security Division.

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

A Somerset County, New Jersey, man was arrested today for attempting to provide material support to Hamas, lying on his application to enlist in the U.S. Army, and making threats against pro-Israel supporters.  Assistant Attorney General for National Security John C. Demers, U.S. Attorney Craig Carpenito for the District of New Jersey, FBI Assistant Director for Counterterrorism Michael McGarrity and Special Agent in Charge Gregory W. Ehrie of the FBI’s Newark Field office made the announcement.

Jonathan Xie, 20, of Basking Ridge, New Jersey, was arrested this morning and is charged by complaint with two counts of attempting to provide material support to a designated terrorist organization, two counts of making false statements, and one count of transmitting a threat in interstate commerce.  He is scheduled to appear this afternoon before U.S. Magistrate Judge Mark Falk in Newark federal court.

“According to the allegations in the complaint, Xie sent money intended for Hamas and tried to join our military hoping to learn skills that would help him commit violence in our country,” said Assistant Attorney General Demers.  “Thanks to the agents, analysts, and prosecutors working on this investigation, Xie is now in custody and will be held accountable for his crimes.”

“Homegrown violent extremists like Xie are a serious threat to national security,” U.S. Attorney Carpenito said.  “The actions that he took and planned to take made that threat both clear and present, and we commend our law enforcement partners for working closely with us to stop him before he could carry out his plans to commit violence on American soil.  We will continue to do everything in our power to safeguard our country and its citizens from the threat of terrorism, whether that threat comes from abroad or – as here – from within.” 

“The FBI is committed to stopping anyone who attempts to assist terrorist organizations or who threatens to commit acts of violence in our communities,” said Assistant Director McGarrity.  “The threat from homegrown violent extremists who self-radicalize remains persistent.  While more Americans may be familiar with ISIS, we take seriously those who wish to help any designated terrorist organization.  I commend the hard work of the Newark Joint Terrorism Task Force on this case.”

“The FBI remains vigilant in its efforts to protect the public from those who support terrorist groups and ideologies,” Special Agent in Charge Ehrie said.  “Thanks to the hard work and determination of our agents and their law enforcement partners on the Joint Terrorism Task Force, this defendant’s further support to terrorism was disrupted and a threat to the safety of our community was averted.  This case also illustrates the value of public awareness and participation.  When you report suspicious activity, you become a force multiplier in the mission to keep America safe.”

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

In April 2019, Xie appeared in an Instagram Live video wearing a black ski mask, and stated that he was against Zionism and the neo-liberal establishment.  When asked by another participant in the video if he would go to Gaza and join Hamas, Xie stated “yes, If I could find a way.”  Later in the video, Xie displayed a Hamas flag and retrieved a handgun.  He then stated “I’m gonna go to the [expletive] pro-Israel march and I’m going to shoot everybody.”  In subsequent Instagram posts, Xie stated, “I want to shoot the pro-israel demonstrators . . .  you can get a gun and shoot your way through or use a vehicle and ram people . . . all you need is a gun or vehicle to go on a rampage . . . I do not care if security forces come after me, they will have to put a bullet in my head to stop me.”  

In December 2018, Xie sent $100 via Moneygram to an individual in Gaza who Xie believed to be a member of the Al-Qassam Brigades – a faction of Hamas that has conducted attacks, to include suicide bombings against civilian targets inside Israel.  At approximately the same time that Xie sent the money, he posted on his Instagram account “Just donated $100 to Hamas.  Pretty sure it was illegal but I don’t give a damn.”  In April 2019, Xie sent a link to a website for the Al-Qassam Brigades to an FBI employee who was acting online in an undercover capacity.  Xie described the website as a “Hamas” website and stated he had previously sent a donation to the group.  Xie then sent screenshots of the website to the undercover employee and demonstrated how to use a new feature on the website that allows donations to be sent via Bitcoin.  On or about April 26, 2019, Xie sent a donation of approximately $20 in Bitcoin (including transaction fees) via the website as a test to see whether the Bitcoin feature worked.

In February 2019, Xie stated that he wanted to join the U.S. Army “to learn how to kill… So I can use that knowledge.”  He stated “Idk [I don’t know] if I pass the training…If I should do lone wolf.  That is why I have to learn military techniques from the Army . . .” Consistent with his plan to join the U.S. Army, Xie completed a Security Clearance Application for National Security Positions in February 2019.  He answered “no” to the question “Have you EVER associated with anyone involved in activities to further terrorism?”  An error occurred in processing Xie’s application and Xie was required to complete the application a second time approximately ten days later.  He again answered “no” to the question.

The investigation revealed additional social media accounts for Xie, including a YouTube account which contained, among other things, a playlist containing videos, many of which advocated or propagandized Soldiers for Allah, the war in Syria, Hezbollah (a foreign terrorist organization), and the Houthi movement in Yemen, as well as support for Bashar al Assad, Saddam Hussein, and North Korea.  Around April 20, 2019, FBI surveillance observed Xie outside of the Trump Tower building in New York City.  Shortly thereafter, according to Instagram records, Xie posted two photos to his Instagram account: One with the words “I want to bomb Trump Tower” imposed over the building image and the other with the words “[S]hould I bomb Trump Tower,” a “Yes/No” poll, and an emoji of a bomb imposed over the Trump Tower building image.

Xie also posted on Instagram his desire to blow up the Israeli Embassy in New York, and the need for “someone … to get a truck filled with explosives and blow up the Coachella event.”

U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark; and the U.S. Department of Defense, Army Counterintelligence, 902d Military Intelligence Group, with the investigation leading to today’s arrest.

Each count of attempt to provide material support to a designated terrorist organization carries a maximum penalty of 20 years in prison and a $250,000 fine.  Each count of making false statements carries a maximum penalty of five years in prison and a $250,000 fine.  The count of transmitting a threat in interstate commerce carries a penalty of five years in prison and a $250,000 fine.

The government is represented by Assistant U.S. Attorney Joyce M. Malliet of the U.S. Attorney’s Office National Security Unit and Trial Attorney Bridget Behling of the U.S. Department of Justice’s Counterterrorism Section of the National Security Division. 

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

NEWARK, N.J. – An investment manager with an office in Middletown, New Jersey, was sentenced today to 180 months in prison for running a Ponzi scheme, concealing losses, faking investment returns, and stealing more than $10 million in investor money, U.S Attorney Craig Carpenito announced today.

Vincent P. Falci, 59, of Middletown, was convicted Dec. 13, 2018, of all four counts of a superseding indictment: three counts of wire fraud and one count of securities fraud following a two-week trial before U.S. District Judge Anne E. Thompson, who imposed the sentence today in Trenton federal court.

According to the superseding indictment and evidence at trial:

Falci controlled a number of investment funds under the names “Saber Funds” and “Vicor Tax Receivables LLP.” The Saber Funds were a collection of investment funds that Falci created and operated, starting in the early 2000s. Many of his earliest victims were friends, family, and associates. Falci served as a fire chief in Middletown, and many early victims were policemen, fireman, and retirement funds for first responders. The Saber Funds grew to have more than 200 investors from whom the defendant raised more than $10 million.

Falci falsely told investors that the Saber Funds were conservatively invested in tax liens – which generated high returns with little risk. In reality, Falci diverted investor money to himself, his family, and to other companies he controlled. Some of the diverted funds were used for riskier ventures, such as day trading and real estate. Falci concealed losses and his own theft from investors. Based on these misrepresentations, investors continued to entrust additional funds to Falci and left previous investments under his control.

In early 2012, Falci started the Vicor Fund, targeting wealthier investors with greater sophistication in financial affairs. The investors in the Vicor Fund included financial industry professionals, and Falci ultimately raised $20 million from these victims. He again falsely represented that he had experience and a track record of success investing in tax liens, and promised that he could produce high rates of return with little risk. In reality, the assets of the Vicor Fund were rapidly depleted by Falci’s theft. 

In order to support his own lifestyle and repay investors the gains he had promised, Falci stole more than $10 million from the Vicor Fund between 2012 and 2016. At the same time, he reported fake investment gains to his investors on every monthly statement. Falci concealed his theft in several ways, including by diverting funds to a fake company that he created to steal from investors. He also forged emails and reports, and created fake assets for the fund.

In addition to the prison term, Judge Thompson sentenced Falci to three years of supervised release, with restitution and forfeiture to be determined at a later date.

U.S. Attorney Carpenito credited inspectors of U.S. Postal Inspection Service, under the direction of Inspector in Charge James V. Buthorn, with the investigation leading to today’s verdict. He also thanked the N.J. Bureau of Securities in the State Attorney General’s Office, under the direction of Attorney General Gurbir Grewal and Bureau Chief Christopher Gerrold, for its assistance in the investigation.

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

NEWARK, N.J. – An Edison, New Jersey, man today admitted that he conspired to export, without a license, firearms and other items subject to the export control list, U.S. Attorney Craig Carpenito announced.

Gene Shilman, 62, a native of the Soviet Union, pleaded guilty before U.S. District Court Judge Katharine S. Hayden in Newark federal court to an information charging him with one count of conspiracy to violate the Arms Export Control Act, the International Emergency Economic Powers Act, and the Export Control Reform Act.

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

From May 2014 through October 2018, Shilman entered into a conspiracy that included a conspirator living in Ukraine. Shilman exported defense articles regulated by the Arms Export Control Act. He exported to Ukraine items that are on the commerce control list as well as items with both defense and civilian uses that are subject to the Export Control Reform Act. Shilman never obtained the required export license from the U.S. Department of Commerce. 

Shilman ordered and received firearm components and parts, ammunition, night-vision goggles and bulletproof vests from various vendors and firearms dealers in the United States. He received numerous wire transfers from overseas locations to pay for the purchase of these items. Shilman repackaged and shipped these munitions to overseas locations without the required export licenses.  

In September 2018, Shilman completed a Customs Declaration form at a U.S. Post Office in Middlesex County, New Jersey, on which he falsely represented that the contents of the parcel destined for Ukraine contained tools and cartridges. An inspection of the parcel revealed that it actually contained multiple upper receivers, ammunition magazines and threaded barrels for handguns and a set of front and rear sights for a handgun.

The conspiracy count with which Shilman is charged carries a maximum potential sentence of five years in prison.

U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark; and the U.S. Department of Commerce, under the direction of Special Agent in Charge Jonathan Carson, with the investigation leading to the arrests.

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

NEWARK, N.J. – A Chinese national who has held high-level executive positions at chemical and pharmaceutical companies in China has been arrested and charged with drug and money laundering offenses, including the importation of fentanyl analogues, U.S. Attorney Craig Carpenito announced today.

Hao Qin, a/k/a “John Chin,” 32, is charged by complaint with one count of conspiracy to import controlled substance analogues and one count of conspiracy to commit international money laundering. The defendant was arrested late yesterday after landing at Los Angeles International Airport and will have his initial appearance today before U.S. District Judge Jean Rosenbluth in the Central District of California.

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

Agents of the Drug Enforcement Administration received information from a cooperating witness that Qin and others were involved in the distribution of controlled substances and controlled substance analogues used to manufacture synthetic cannabinoids for human consumption. They were also aware that Qin and others were laundering their illegal proceeds.

During the time of the conspiracy, Qin was a high-level executive for pharmaceutical and chemical companies. He was allegedly responsible for importing more than 500 kilograms of controlled substance analogues into the United States. Among the substances imported by Qin and his conspirators through Qin’s chemical business were furanyl fentanyl and 4-FIBF, two potent analogues of the opioid drug fentanyl.

Qin is also charged with laundering the proceeds of his international drug business, including accepting wire payments designed to pay off a drug debt of more than $500,000 incurred by one of Chin’s former clients in the United States.

The count of conspiracy to import controlled substance analogues is punishable by a maximum of 20 years in prison and a fine of $1 million, and the count of conspiracy to commit international money laundering is punishable by a maximum of 20 years in prison and a fine of $500,000.
This case is being conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF). The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.

U.S. Attorney Carpenito credited special agents with the DEA, under the direction of Special Agent in Charge Susan A. Gibson in Newark, with the investigation leading to the charges. The investigation was supported and coordinated by the Department of Justice’s multi-agency Special Operations Division.

The government is represented by Assistant U.S. Attorney Melissa Wangenheim of the Office’s Cyber Crimes Unit, Assistant U.S. Attorneys Sammi Malek of the Office’s Economic Crimes Unit, and Erica Liu, Chief of the Office’s Opioids Unit.

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

NEWARK, N.J. – Two members of a Jersey City gang have been charged with the Jan. 9, 2019, shooting of two people and the attempted shooting of a third person, U.S. Attorney Craig Carpenito announced today. 

Jalil Holmes, a/k/a “Broadday,” 19, of East Orange, New Jersey, and Jakeem Gibson-Madison, a/k/a “Beanz,” 24, of Jersey City, New Jersey, made their initial appearances today before U.S. Magistrate Judge Mark Falk in Newark federal court. They each are charged by complaint with three counts of assault with a dangerous weapon in aid of racketeering activity and three counts of discharging a firearm during a crime of violence.

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

Holmes and Gibson-Madison are allegedly both members of a street gang known to operate in the area of the Marion Gardens Housing Complex in Jersey City. In retaliation for the December 2018 murder of a fellow gang member, Holmes and Gibson-Madison sought out individuals associated with a rival gang. They located a BMW automobile that Holmes believed was occupied by rival gang members. While Gibson-Madison parked their car around the corner, Holmes approached the BMW, pulled a handgun from his waistband and fired multiple shots into the vehicle. One victim suffered three gunshot wounds to his back, a second victim suffered two gunshot wounds to his back, and the third victim was not hit. 

Each count of assault with a dangerous weapon in aid of racketeering activity is punishable by up to 20 years in prison. Each count of discharging a firearm during a crime of violence carries a mandatory minimum term of 10 years in prison and a maximum sentence of life in prison, which must run consecutively to any terms imposed on the other counts.

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

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

Ocean County Co-Defendant Recently Sentenced to 13 Months in Prison

TRENTON, N.J. – A Virginia man was sentenced today to 19 months in prison for his role in a scheme that used the purported non-profit The Good Samaritans of America to defraud the Medicare Program of more than $525,000 by convincing hundreds of senior citizens to submit to genetic testing, U.S. Attorney Craig Carpenito announced.

Kenneth Johnson, 39, of Lorton, Virginia, previously pleaded guilty before U.S. District Judge Anne E. Thompson to an information charging him with one count of conspiracy to commit health care fraud and one count of conspiring to wrongfully access individually identifiable information.

His co-defendants also previously pleaded guilty before Judge Thompson; Sheila Kahl, 47, of Ocean County, was sentenced May 14, 2019, to 13 months in prison, and Seth Rehfuss, 44, of Somerset, New Jersey, was sentenced May 10, 2019, to 50 months in prison.

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

Rehfuss used The Good Samaritans of America to gain access to groups of senior citizens in various low-income senior citizen housing complexes and persuaded them to submit to genetic tests without any involvement of a health care professional. Contrary to what he told the senior citizens and staff at the housing complexes, Rehfuss was a sales representative for laboratories, a fact he concealed from his targets. In order to convince senior citizens to submit to genetic testing, he used fear-based tactics during the presentations, including suggesting the senior citizens would be vulnerable to heart attacks, stroke, cancer and suicide if they did not have the genetic testing.

To get the tests authorized, Rehfuss used advertisements on Craigslist to recruit health care providers for the scheme. The health care providers were paid thousands of dollars per month by Rehfuss and others to sign their names to requisition forms authorizing testing for patients they never examined or had any interaction with. Rehfuss and his conspirators, including Kahl and Johnson, established email accounts, phone numbers, and made-up “office manager” names for the requisition forms that made it seem as though the health care providers were actually treating the patients being swabbed and would be evaluating the test results.

Rehfuss, Kahl, Johnson, and others caused the Medicare program to pay two clinical laboratories for the fraudulent test claims that the scheme generated. They obtained and divided more than $100,000 in commission payments from the laboratories.

The conspirators were also actively working towards expanding the scheme outside of New Jersey into other states, including: Georgia, Delaware, Virginia, Maryland, Pennsylvania, South Carolina, Michigan, Mississippi, Florida, Tennessee and Arizona.

In addition to the prison term, Judge Thompson sentenced Johnson to three years of supervised release, ordered him to pay restitution of $525,000 and forfeiture of $525,000.

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

The government is represented by Assistant U.S. Attorneys Danielle Alfonzo Walsman, Bernard J. Cooney and Sara F. Merin, of the Health Care & Government Fraud Unit in Newark.

Defense counsel: Johnson: David B. Glazer Esq., Livingston, New Jersey
Kahl: Stacy A. Biancamano Esq., Cranford, New Jersey
Rehfuss: Aidan P. O’Connor Esq., Hackensack, New Jersey

NEWARK, N.J. – A former accounting specialist in the Ridgefield Park, New Jersey, office of an insurance broker was sentenced today to 27 months in prison for defrauding her employer of approximately $900,000, U.S. Attorney Craig Carpenito announced.

Violeta McGough, 57, of Bergenfield, New Jersey, previously pleaded guilty before U.S. District Judge Madeline Cox Arleo to an information charging her with one count of wire fraud. Judge Arleo imposed the sentence today in Newark federal court.

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

From 2008 through October 2015, McGough allegedly made numerous fraudulent accounting entries to steal funds that her employer – identified as “Victim-Company 1” – collected as insurance premiums. The premiums were for policies underwritten and issued by Victim-Company 1 on behalf of a United Kingdom-based insurance syndicate that actually held the risk. As part of her employment duties, McGough tracked premiums collected by Victim-Company 1 and its monthly payments to the syndicate.

McGough repeatedly used her access to Victim-Company 1’s books to divert a portion of those payments to her personal use. McGough disguised the stolen funds as reimbursed premiums for cancelled policies. She caused Victim-Company 1 to generate checks payable to a person identified in the complaint as “Individual 1,” who suppossedly worked for a premium financing company, but did not actually work there. McGough personally deposited the checks into Individual 1’s bank account and the bulk of the funds were transmitted back to McGough’s bank account.

In addition to the prison term, Judge Arleo sentenced McGough to three years of supervised release.

U.S. Attorney Carpenito credited postal inspectors with the U.S. Postal Inspection Service, under the direction of Inspector in Charge James Buthorn, and special agents of the U.S. Attorney’s Office, with the investigation leading to today’s guilty plea.

The government is represented by Assistant U.S. Attorney David W. Feder of the U.S. Attorney’s Office Criminal Division in Newark.

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

NEWARK, N.J. – A Nebraska man was arrested today for allegedly selling one of his employer’s databases, U.S. Attorney Craig Carpenito announced.

Timothy Young, 49, of Moorefield, Nebraska, is charged by complaint with one count of wire fraud. He is scheduled to make his initial appearance May 17, 2019, before U.S. Magistrate Judge F.A. Gossett III, in Omaha, Nebraska, federal court.

According to documents filed in this case:

Young was employed at a data analytics and risk assessment firm based on New Jersey.  The company serves customers worldwide, including entities providing insurance and financial services as well as government entities. The company maintains a network that houses, among other things, significant amounts of personally identifiable information.

Young provided to an individual he met online non-public information from the company’s system, including names, logon names, passwords, email addresses, and telephone numbers for some of the company’s clients. Young expected to be paid for providing this information. 

The charge of wire fraud is punishable by a maximum potential penalty of 20 years in prison and a fine of the greater of $250,000, twice the gross profits to Young or twice the gross loss suffered by the victim.

U.S. Attorney Carpenito credited special agents the FBI Cyber Task Force, which includes special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark; and task force officers from the N.J. State Police, Jersey City Police Department and Federal Protective Service, with the investigation leading to today’s arrest. He also thanked FBI Omaha, under the direction of Randall C. Thysse, for its role in the investigation.

The government is represented by Assistant U.S. Attorney Andrew Kogan of the U.S. Attorney’s Office Cyber Crimes Unit 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 Middlesex County, New Jersey, certified public accountant was sentenced today to 27 months in prison for underreporting his income on his personal tax return, avoiding paying more than $672,000 in taxes, U.S. Attorney Craig Carpenito announced. 

Amit Govil, 58, of New Brunswick, New Jersey, previously pleaded guilty before U.S. District Judge Jose L. Linares to Count 1 of an indictment charging him with making and subscribing a false tax return. Judge Linares imposed the sentence today in Newark federal court.

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

Govil, licensed as a CPA in New York and New Jersey, operated P&G Associates, a business headquartered in East Brunswick, New Jersey, providing risk management and audit services to community banks. Govil admitted that for the tax year 2010, he underreported and failed to report the gross receipts or sales of P&G Associates on Schedule C of his personal tax return, avoiding more than $672,000 in taxes. 

In addition to the prison term, Judge Linares sentenced Govil to one year of supervised release.

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

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

NEWARK, N.J. – A Newark man today admitted his role in a phony check scheme that resulted in the theft of over $2 million in merchandise from multiple home-improvement stores throughout the country, U.S. Attorney Craig Carpenito announced. 

Lessie Dickerson III, 35, pleaded guilty before U.S. District Judge Katharine S. Hayden in Newark federal court to one count of an indictment charging him with conspiracy to commit wire fraud.

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

From December 2013 and through February 2017, Dickerson and others conspired to obtain merchandise or store credit from home-improvement stores in the eastern United States, including New Jersey, by purchasing items with fraudulent checks. They entered home-improvement and other retail stores and gathered high-value items, like air conditioners or hardwood flooring. Dickerson and others then typically “purchased” the items either by a fraudulent check with a phony name but authentic account and routing numbers, or by pretending to be an authorized signatory on a store credit account that Dickerson and others had previously opened with a phony check.

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

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

The count of conspiracy to commit wire fraud carries a maximum potential of 20 years in prison and a $250,000 fine. Sentencing is scheduled for Sept. 16, 2019.

U.S. Attorney Carpenito credited postal inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge James Buthorn, and special agents of the U.S. Attorney’s Office, District of New Jersey, with the investigation leading to today’s guilty plea. He also thanked the Union Township Police Department, the Holmdel Police Department, the Passaic County Prosecutor's Office, the Totowa Police Department, and the Monroe Township Police Department for their assistance.

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

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

Police Officer Matthew Torres, 30, of Paterson, New Jersey, pleaded guilty before U.S. District Judge Katharine S. Hayden in Newark federal court to an information charging him with conspiracy to violate individuals’ civil rights and filing a false police report.

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

Torres, along with other Paterson police officers, including Eudy Ramos, Jonathan Bustios, Daniel Pent, and others, stopped and searched motor vehicles, without any justification, and stole cash and other items from the occupants of the motor vehicles. Torres and the other officers sometimes used fake paperwork to trick individuals into believing that the cash seizures and vehicle stops represented legitimate law enforcement encounters. Torres and the other officers also stopped and searched individuals on the streets of Paterson, and illegally took their money. To cover up their criminal activity, Torres and his fellow officers filed false police reports.

For example, on Dec. 7, 2017, while on duty, Torres and Ramos conducted a vehicle stop in Paterson. Torres and Ramos searched the vehicle, the driver, and the passenger. The passenger advised Torres and Ramos that he had a small quantity of marijuana. He also had approximately $3,100. Ramos and Torres told the passenger that they could take $500 from the passenger and have him sign a piece of paper. Ramos then placed a call, purportedly to his superior, and told the passenger that the superior officer said it had to be $800. Ramos took out a piece of white paper, wrote something on it, and told the passenger to sign it. Afterwards, Torres and Ramos released the driver and passenger. Torres and Ramos stole approximately $800 from the passenger, and they shared the stolen cash proceeds. In order to conceal their theft of monies, Torres and Ramos each omitted the encounter from their daily Paterson Police Department activity logs.

The conspiracy to violate civil rights charge carries a maximum penalty of 10 years in prison. The false records count carries a maximum penalty of 20 years in prison. The maximum fine for each count is $250,000. Sentencing is scheduled for Sept. 9, 2019.

U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, with the investigation leading to today’s arrest. He also thanked the Passaic County Prosecutor’s Office, under the direction of Passaic County Prosecutor Camelia M. Valdes, the Paterson Police Department, under the direction of Paterson Police Director Jerry Speziale and Police Chief Troy Oswald, and the Paterson Police Department Office of Internal Affairs, for their assistance in the investigation.

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

Defense counsel: John C. Whipple Esq., Morristown, New Jersey

NEWARK, N.J. – A Bergen County doctor has been charged with distributing opioids without a legitimate medical reason and falsifying medical records to cover it up, U.S. Attorney Craig Carpenito announced.

Robert Delagente, 45, of Oakland, New Jersey, is charged by complaint with one count of distribution of controlled dangerous substances and one count of obstruction of justice. Delagente is scheduled to appear this afternoon before U.S. Magistrate Judge Steven C. Mannion in Newark federal court.

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

Beginning in May 2014, Delagente was a doctor at a medical practice called North Jersey Family Medicine (NJFM) in Oakland, New Jersey. He allegedly described himself in conversations pertaining to his prescribing of painkillers as the “Candy Man” and the “El Chapo of Opioids.” Delagente knowingly prescribed controlled substances, such as oxycodone, Percocet, Tylenol with codeine, and various benzodiazepines (alprazolam, diazepam, clonazepam, and temazepam), outside the ordinary course of professional practice and without a legitimate medical purpose. He ignored the inherent danger and medical risk of overdose, drug abuse, and death that can accompany prescriptions of highly addictive opioids, benzodiazepines, and muscle relaxers, both on their own and in combination with one another.

Delagente prescribed controlled substances without ever seeing the purported patient for a medical visit or even discussing with the patient the medical need for the prescription. He allowed patients to ask him for controlled substances via text message and would write a prescription for patients that he would leave at the front desk, without requiring an office visit or consultation of any kind. He allowed patients to dictate the strength and dosage of the controlled substances he prescribed for them. Delagente also prescribed the dangerous drug combination known as the “Holy Trinity,” comprised of opioids (usually oxycodone), benzodiazepines (usually alprazolam) and muscle relaxers (usually carisoprodol).

Delagente failed to monitor patients for addiction and ignored drug screening tests to determine whether certain patients were taking illicit drugs. In fact, Delagente prescribed controlled substances to patients he knew were addicted to opioids or other controlled substances. In one instance, an NJFM employee texted Delagente that a patient had gotten a babysitter and driven a long distance to get to the practice, but had been unable to see a doctor. Delagente responded: “Oh well … C’est la vie! Lol … He can wait for his oral heroin another day. Lol.”

One patient texted Delagente that the patient “probably can’t stop the pk’s,” referring to painkillers. The patient told Delagente that the patient “would need a plan to stop…not cold turkey.” A few days later, when the patient was having trouble obtaining pain medication, the patient wrote to Delagente that “If I go 4 days without [painkillers] I am in huge trouble.” In response, Delagente wrote “I will leave you a short supply RX [prescription] at the front to pick up.” Delagente then wrote the patient a prescription for 120 tablets of 30-milligram oxycodone for 30 days. Delagente at one point told this patient: “I’m literally sticking my neck out and can lose my medical license or [be] arrested for what I just did.”

Delagente also was charged with altering medical records of patients who received controlled substance prescriptions from him after law enforcement officials had subpoenaed the records from him in late April 2019.

Delagente faces a maximum penalty of 20 years in prison and a $1 million fine on the distribution of controlled dangerous substances charge. Delagente faces a maximum penalty of 20 years in prison and a $250,000 fine on the obstruction charge.

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

The government is represented by Assistant U.S. Attorneys Erica Liu, Chief of the Opioids Unit, and Jason S. Gould of the Opioids Unit in Newark.

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

Defense counsel: Riza Dagli Esq., Roseland, New Jersey

TRENTON, N.J. – A Somerset County, New Jersey, man was sentenced today to 50 months in prison for using the purported non-profit The Good Samaritans of America to defraud the Medicare Program of more than $430,000 by convincing hundreds of senior citizens to submit to genetic testing, U.S. Attorney Craig Carpenito announced.

Seth Rehfuss, 44, of Somerset, New Jersey, previously pleaded guilty before U.S. District Judge Ann E. Thompson to a superseding information charging him with one count of conspiracy to commit health care fraud. Judge Thompson imposed the sentence today in Trenton federal court.

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

Rehfuss admitted that he used The Good Samaritans of America to gain access to groups of senior citizens in various low-income senior citizen housing complexes and persuaded them to submit to genetic tests without any involvement of a health care professional. Contrary to what he told the senior citizens and staff at the housing complexes, Rehfuss was a sales representative for laboratories, a fact he concealed from his targets. In order to convince senior citizens to submit to genetic testing, Rehfuss used fear-based tactics during the presentations, including suggesting the senior citizens would be vulnerable to heart attacks, stroke, cancer and suicide if they did not have the genetic testing.

To get the tests authorized, Rehfuss used advertisements on Craigslist to recruit health care providers for the scheme. The health care providers were paid thousands of dollars per month by Rehfuss and others to sign their names to requisition forms authorizing testing for patients they never examined or had any interaction with. Rehfuss and his conspirators, Sheila Kahl and Kenneth Johnson, established email accounts, phone numbers, and made-up “office manager” names for the requisition forms that made it seem as though the health care providers were actually treating the patients being swabbed and would be evaluating the test results.

Rehfuss, Kahl, Johnson, and others caused the Medicare program to pay two clinical laboratories for the fraudulent test claims that the scheme generated. They obtained and divided more than $100,000 in commission payments from the laboratories.

Rehfuss and others were also actively working towards expanding the scheme outside of New Jersey into other states, including: Georgia, Delaware, Virginia, Maryland, Pennsylvania, South Carolina, Michigan, Mississippi, Florida, Tennessee and Arizona.

In addition to the prison term, Judge Thompson sentenced Rehfuss to three years of supervised release, ordered him to pay restitution of $434,963 and forfeiture of $66,844.

Sheila Kahl, 47, of Ocean County, previously pleaded guilty and is scheduled to be sentenced May 13, 2019.  Kenneth Johnson, 39, of Lorton, Virginia, pleaded guilty and is scheduled to be sentenced May 20, 2019.

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

The government is represented by Assistant U.S. Attorneys Bernard J. Cooney, Sara F. Merin, and Danielle Alfonzo Walsman of the Health Care & Government Fraud Unit in Newark.

NEWARK, N.J. – A Newark man was charged today with narcotics offenses after an authorized search revealed that he was operating a large-scale heroin mill out of his apartment, U.S. Attorney Craig Carpenito announced.

Alexis Garcia Cabrera, 49, is charged by complaint with one count of possessing over one kilogram of heroin with intent to distribute. Garcia Cabrera made his initial appearance before U.S. Magistrate Judge Leda Dunn Wettre in Newark federal court and was released on home detention.

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

On May 9, 2019, Drug Enforcement Administration (DEA) agents executed a search warrant at Garcia Cabrera’s residence and located multiple freezer-type bags containing heroin, as well as a large quantity of loose heroin that was in the processing stage. Law enforcement officers also located equipment used to process and “cut” heroin, including grinders, sifters, and chemical cutting agents, and large quantities of materials designed to package heroin for street-level distribution, including more than 1,000 glassine envelopes. Agents also located multiple “bricks” of heroin, or packages of 50 individual doses, which are intended for street-level distribution.

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

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

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

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

Defense counsel: Chester Keller Esq., First Assistant Federal Public Defender, Newark

NEWARK, N.J. – A certified public accountant from New York was sentenced today to 14 months in prison for filing a tax return in his own name that contained materially false information, U.S. Attorney Craig Carpenito announced.

Christopher Miu, 58, previously pleaded guilty before U.S. District Judge William J. Martini to an information charging him with one count of subscribing to a tax return that he knew substantially understated his gross income. Judge Martini imposed the sentence today in Newark federal court.

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

Between 2008 and 2014, Miu failed to file income tax returns own his own behalf. When he ultimately filed returns for those years, Miu substantially under-reported his gross income, leading to a tax loss to the United States of more than $550,000.

In addition to the prison term, Judge Martini sentenced Miu to one year of supervised release and ordered him to pay restitution of $670,000.

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

The government is represented by Senior Trial Counsel Andrew Leven of the Healthcare and Government Fraud Unit of the U.S. Attorney’s Office, District of New Jersey.

Defense counsel: Aidan P O’Connor Esq., Hackensack, New Jersey

TRENTON, N.J. – A Mercer County, New Jersey, man, formerly of Ocean County, New Jersey – a cargo pilot who traveled abroad frequently – was indicted today for allegedly using two minors to participate in acts of child sexual abuse, which he video-recorded and imported to the United States, U.S. Attorney Craig Carpenito announced.

Frank William Maile, 63, of Hamilton, New Jersey, and formerly of New Egypt, New Jersey, was previously arrested on May 1, 2018, by agents of the Department of Homeland Security (DHS), Homeland Security Investigations (HSI). Maile is retired from the U.S. Air Force and, before his arrest, worked as a cargo pilot. A grand jury sitting in Trenton today returned a five-count indictment against Maile, charging two counts of production of child pornography abroad, two counts of illicit sexual conduct abroad, and one count of possession of child pornography.

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

Between Nov. 27, 2015, and Dec. 27, 2015, while in the Philippines, Maile created images and videos of two minor females engaging in multiple sex acts. Between Feb. 18, 2016, and March 28, 2016, Maile traveled to the Philippines and engaged in sexual contact with both victims, which constituted commercial sex acts because they were performed for compensation, and also created additional videos of the victims. Maile also possessed additional images of child sexual abuse in New Jersey at the time of his arrest.

The charges of producing child pornography abroad each carry a mandatory minimum sentence of 15 years in prison, a maximum potential penalty of 30 years in prison, and a $250,000 fine. The charges of engaging in illicit sexual conduct in a foreign place each carry a maximum potential penalty of 30 years in prison, and a $250,000 fine. The charge of possession of child pornography carries a maximum potential penalty of 10 years in prison, and a $250,000 fine.

U.S. Attorney Carpenito credited special agents of the DHS Cherry Hill office, under the direction of Resident Agent in Charge Richard Reinhold, with the investigation leading to the charges. He also thanked the Ocean County Prosecutor’s Office, under the direction of Prosecutor Bradley D. Billhimer, and the Plumsted Township Police Department, under the direction of Chief Earl Meroney, for their assistance with the investigation.

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

Anyone with information regarding possible victims of this activity is urged to contact HSI’s tip line at 866-DHS-2-ICE.

Defense counsel: Jerome A. Ballarotto Esq., Trenton

CAMDEN, N.J. – A Hudson County, New Jersey, woman was convicted today of charges of forced labor, alien harboring for financial gain, and marriage fraud, U.S. Attorney Craig Carpenito and Assistant Attorney General Eric Dreiband of the Civil Rights Division announced.

Alia Imad Faleh Al Hunaity, a/k/a “Alia Al Qaternah,” 43, was found guilty on all counts of the indictment against her following a six-day trial before U.S. District Judge Robert B. Kugler in Camden federal court. The jury deliberated for two hours before returning the guilty verdicts. 

“The defendant in this case treated the victim as a slave,” U.S. Attorney Carpenito said. “Al-Hunaity kept the victim in this country illegally and hid her away, in order to force her to perform household work for Al-Hunaity without pay, privacy, or the ability to move about freely. Through the guilty verdicts in this case and other prosecutions like it, this office continues to work to ensure that the evil of human trafficking is brought out from hiding and into the light so that it may be punished appropriately.”

“The defendant took advantage of the victim for years, forcing her to live in terrible conditions, work without pay, and then enter into a fraudulent marriage to continue the cycle of abuse,” Assistant Attorney General Dreiband said. “The Department of Justice will continue to investigate and vigorously prosecute forced labor cases so that victims can obtain justice.”

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

Hunaity brought the victim, a Sri Lankan national, to the United States on a temporary visa in 2009 to perform domestic work. Hunaity caused the victim to overstay her visa and remain in the United States illegally for over nine years. Hunaity forced the victim to cook and clean her homes in Woodland Park and Secaucus, New Jersey, and to care for her three children, all without pay. She limited the victim’s interactions with the world outside of Hunaity’s homes. During this time, Hunaity required the victim to sleep on a bed in a public space in Hunaity’s homes, including in the kitchen. In 2018, Hunaity forced the victim to marry her so that the victim could obtain legal residence and Hunaity could continue to force her to work without fear of the victim being deported.   

The forced labor charge carries a maximum penalty of 20 years in prison and a maximum fine of $250,000. Sentencing is scheduled for Sept. 4, 2019. 

U.S. Attorney Carpenito and assistant Attorney General Dreiband credited special agents of U.S. Homeland Security Investigations, Newark Division, under the direction of Special Agent in Charge Brian Michael, and special agents of the U.S. Department of Labor, Office of Inspector General, New York Region, under the direction of Special Agent in Charge Michael C. Mikulka, with the investigation leading to today’s verdicts. 

This case was prosecuted in conjunction with the interagency Anti-Trafficking Coordination Team initiative of the Departments of Justice, Homeland Security and Labor. ACTeams focus on developing high-impact human trafficking investigations and prosecutions involving forced labor, international sex trafficking and sex trafficking by force, fraud or coercion through interagency collaboration among federal prosecutors and federal investigative agencies. U.S. Citizenship and Immigration Services’ Newark Fraud Detection and National Security Unit also provided support.

The government is represented by Assistant U.S. Attorneys Andrew Macurdy and Alyson M. Oswald of the U.S. Attorney’s Office for the District of New Jersey, Criminal Division, and Trial Attorney Kate Hill of the Civil Rights Division’s Human Trafficking Prosecution Unit. 

A Hudson County, New Jersey, woman was convicted today on charges of forced labor, alien harboring for financial gain, and marriage fraud, announced Assistant Attorney General Eric Dreiband of the Civil Rights Division and U.S. Attorney Craig Carpenito for the District of New Jersey.

Alia Imad Faleh Al Hunaity, aka “Alia Al Qaternah,” 43, was found guilty on all counts of the indictment against her following a six-day trial before U.S. District Judge Robert B. Kugler in Camden federal court. The jury deliberated for two hours before returning the guilty verdict. 

“The defendant took advantage of the victim for years, forcing her to live in terrible conditions, work without pay, and then enter into a fraudulent marriage to continue the cycle of abuse,” said Assistant Attorney General Eric Dreiband. “The Department of Justice will continue to investigate and vigorously prosecute forced labor cases so that victims can obtain justice.”

“The defendant in this case treated the victim as a slave,” U.S. Attorney Carpenito said. “Al-Hunaity kept the victim in this country illegally and hid her away, in order to force her to perform household work for Al-Hunaity without pay, privacy, or the ability to move about freely. Through the guilty verdicts in this case and other prosecutions like it, this office continues to work to ensure that the evil of human trafficking is brought out from hiding and into the light so that it may be punished appropriately.”

According to documents filed in this case and the evidence at trial, Hunaity brought the victim, a Sri Lankan national, to the United States on a temporary visa in 2009 to perform domestic work. Hunaity caused the victim to overstay her visa and remain in the United States illegally for over nine years. Hunaity forced the victim to cook and clean her homes in Woodland Park and Secaucus, New Jersey, and to care for her three children, all without pay. She further limited the victim’s interactions with the world outside of Hunaity’s homes. During this time, Hunaity required the victim to sleep on a bed in a public space in Hunaity’s homes, including in the kitchen. In 2018, Hunaity forced the victim to marry her so that the victim could obtain legal residence and Hunaity could continue to force her to work without fear of the victim being deported.      

The forced labor charge carries a maximum penalty of 20 years in prison and a maximum fine of $250,000. Sentencing is scheduled for Sept. 4. 

U.S. Homeland Security Investigations, Newark Division, under the direction of Brian Michael, led the investigation.   

This case was prosecuted in conjunction with the interagency Anti-Trafficking Coordination Team initiative of the Departments of Justice, Homeland Security and Labor. ACTeams focus on developing high-impact human trafficking investigations and prosecutions involving forced labor, international sex trafficking and sex trafficking by force, fraud or coercion through interagency collaboration among federal prosecutors and federal investigative agencies.

The government is represented by Assistant U.S. Attorneys Andrew Macurdy and Alyson M. Oswald of the U.S. Attorney’s Office for the District of New Jersey, Criminal Division, and Trial Attorney Kate Hill of the Civil Rights Division’s Human Trafficking Prosecution Unit. 

NEWARK, N.J. – A Passaic County, New Jersey, man was convicted today on charges that he conspired to distribute at least one kilogram of heroin, U.S. Attorney Craig Carpenito announced.

Yasmil Minaya, a/k/a “Animal,” 33, was convicted on both counts of the indictment against him: one count of conspiracy to distribute one kilogram or more of heroin and one count of distribution and possession with intent to distribute one kilogram or more of heroin. Minaya was convicted following a two-week trial before U.S. District Judge Kevin McNulty 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:

Law enforcement officials learned that Minaya and his co-defendants were serving as New Jersey and New York area distributors for a drug trafficking organization operating in the Dominican Republic, Mexico and elsewhere. The organization’s narcotics were usually transported to this area via truck and were paid for by the defendants before being sold on the street. The drug organization has been linked to several multiple-kilogram seizures of heroin, including a seizure of approximately two kilograms of heroin in March 2015, four kilograms in November 2015, and 10 kilograms in January 2017.

The counts on which Minaya was convicted carry a mandatory minimum sentence of 10 years imprisonment, a maximum sentence of life imprisonment, and a maximum fine of $10 million per count. Sentencing is scheduled for Sept. 4, 2019.

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

U.S. Attorney Carpenito credited special agents with the DEA, under the direction of Special Agent in Charge Susan A. Gibson, and officers with the N.J. State Police, Trafficking North Unit, under the direction of Col. Patrick J. Callahan, with the investigation leading to today’s conviction.

The government is represented by Assistant U.S. Attorney Melissa Wangenheim of the OCDETF/Narcotics Unit in Newark and U.S. Attorney Carpenito.

NEWARK, N.J. – A Hoboken, New Jersey, man today admitted promoting a voter bribery scheme in two city elections, U.S. Attorney Craig Carpenito announced.

Matthew Calicchio, 28, pleaded guilty before U.S. District Court Judge William J. Martini in Newark federal court to an information charging him with using the mails to promote voter bribery from 2013 to 2015 in municipal elections in Hoboken.

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

In November 2013, Calicchio, Lizaida Camis, Dio Braxton and others – at Frank Raia’s direction – participated in a scheme to pay certain Hoboken voters $50 if those voters applied for and cast mail-in ballots for the November 2013 Hoboken municipal election. Under New Jersey law, registered voters are permitted to cast a ballot by mail. They must complete and submit to their county clerk’s office an Application for Vote by Mail Ballot (VBM Application). The clerk’s office processes the application and sends the applicant a mail-in ballot.

After the mail-in ballots were delivered to the Hoboken voters, Camis and others went to the voters’ residences and, in some cases, instructed the voters to vote for a rent control referendum that Raia supported. Camis and others 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 instructed Calicchio, Camis, and Braxton that if the ballots did not come back open, the voters would not get paid. Braxton, Camis and others then checked the ballots to ensure that the voters had voted for the correct slate of candidates, including for Raia, and that they had voted for the referendum that was favored by Raia. Calicchio and others mailed certain of the completed ballots to the Hudson County Clerk’s Office. After the election, the voters received $50 checks from an entity associated with Raia.

In November 2015, Calicchio and Willie Rojas agreed to pay certain Hoboken voters $50 if those voters applied for and cast mail-in ballots in the November 2015 Hoboken municipal election in favor of a certain candidate for City Council. The candidate told Calicchio that the candidate wanted to win at all costs, and the candidate further indicated that everyone who voted by mail would get paid. Willie Rojas provided voters with VBM Applications, told the voters that they would get paid $50 for casting mail-in ballots, and then delivered the completed VBM Applications to the Hudson County Clerk’s office. After the mail-in ballots were delivered to the voters, Rojas went to the voters’ residences to collect the mail-in ballots. Calicchio and Rojas then checked the ballots to ensure that they had been cast for their candidate, and Calicchio signed an affidavit for each ballot falsely stating that he had assisted the voters in completing their ballots. After the election, the candidate handed Calicchio an envelope with $50 checks, and Calicchio passed the envelope to Rojas, who gave the checks to the voters.

The count to which Calicchio pleaded guilty is punishable by a maximum penalty of five years in prison and a $250,000 fine. Sentencing is scheduled for Sept. 12, 2019.

Camis previously pleaded guilty to her role in the scheme and is awaiting sentencing. Braxton and Raia were previously indicted and Rojas was previously charged by complaint. The charges against them are merely accusations, and they are 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 Rahul Agarwal, Deputy Chief of the Criminal Division, and Assistant U.S. Attorney Sean Farrell of the U.S. Attorney’s Office’s Special Prosecutions Division.

Defense counsel: Michael P. Koribanics Esq., Clifton, New Jersey

TRENTON, N.J. – A former chiropractor with offices in Lakewood, New Jersey, was sentenced today to 60 months in prison for evading income taxes totaling more than half a million dollars from 2012 through 2015 and failing to report a Russian bank account, to which he wired more than $1.5 million, U.S. Attorney Craig Carpenito announced.

Carlo Amato, 57, of Beachwood, New Jersey, previously pleaded guilty before U.S. District Judge Michael A. Shipp to one count of tax evasion and one count of failure to file a report of foreign financial account (FBAR) while violating another law of the United States and as part of a pattern of illegal activity involving more than $100,000 in a 12-month period. Judge Shipp imposed the sentence today in Trenton federal court.

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

From 2012 through 2015, Amato operated a chiropractic office in Lakewood through two entities: Chiropractic Care Consultants Inc. and Accident Recovery Physical Therapy. He deposited, or caused to be deposited, checks for chiropractic services into accounts held in the names of his minor children. Amato knew that these checks were taxable as income, but he did not disclose the payments to his accountant, nor did he report them on his tax returns. Amato also failed to report as taxable income certain additional funds that were deposited into Chiropractic Care’s and Accident Recovery’s business bank accounts. For example, Amato reported $0 in taxable income and $0 in tax due on his 2014 income tax return. His taxable income for 2014 was, in fact, $561,258, and Amato admitted that the tax due and owing to the IRS for 2014 was $197,036. Amato admitted that he also evaded more than $300,000 in taxes for the tax years 2012, 2013, and 2015.

Amato, a U.S. citizen, admitted that in 2014, he had an account at UniCredit Bank in Russia. He admitted that he wired more than $1.5 million to Russian bank accounts, including the UniCredit Bank account, and that he knew that he was obligated to report any foreign bank account with an aggregate value of more than $10,000. Amato admitted that he nonetheless failed to file a report of foreign account, commonly known as an FBAR, for the year 2014. Amato also admitted that the funds he failed to report were the product of a fraudulent scheme in which Amato overbilled at least six insurance companies by more than $1 million by billing for services that were never rendered. Amato previously pleaded guilty in Ocean County Superior Court to first degree financial facilitation of criminal activity for money laundering of funds from the overbilling scheme.

In addition to the prison term, Judge Shipp sentenced Amato to three years of supervised release.

Under the terms of his plea agreement, Amato will file amended tax returns and make full restitution for the years 2012 through 2015 and file accurate FBARs for the years 2012 through 2017.

U.S. Attorney Carpenito credited special agents of the IRS-Criminal Investigation, under the direction of Special Agent in Charge John R. Tafur, with the investigation leading to today’s sentencing. U.S. Attorney Carpenito thanked the Ocean County Prosecutor’s Office, under the direction of Prosecutor Bradley D. Billhimer, and the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie, for their roles in the investigation.

The government is represented by Assistant U.S. Attorney Elisa T. Wiygul of the Criminal Division in Trenton.

Defense counsel: Thomas R. Ashley Esq., Newark

CAMDEN, N.J. – A former Camden County, New Jersey, man today admitted perpetrating a long-running scheme to defraud the U.S. Treasury Department of millions of dollars by falsely claiming federal rebates for solar panels his company never installed, U.S. Attorney Craig Carpenito announced.

Charles E. Kartsaklis, 41, formerly of Erial, New Jersey, and now living in Davenport, Florida, pleaded guilty before U.S. District Judge Noel L. Hillman in Camden federal court to an information charging him with one count of wire fraud. Kartsaklis was released on bail.

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

Since 2009, Kartsaklis has been the president and chief executive officer of Code Green Solar LLC, a now-defunct New Jersey solar panel installation business. In 2011 and 2012, Kartsaklis submitted proposals on behalf of Code Green Solar to install solar panels at several businesses in New Jersey, identified in court papers as Businesses 1 through 5. Businesses 1 through 5 rejected the proposals. Nevertheless, Kartsaklis applied for and obtained federally funded rebates totaling more than $3 million by falsely claiming that Code Green Solar had installed solar panels on each of those businesses. He manufactured fraudulent documents and electronically transmitted them to the U.S. Treasury Department, including:

• applications for funds pursuant to the American Recovery and Reinvestment Act; • phony “Solar Power Purchase Agreements,” which purported to reflect agreements pertaining to the purchase of electricity between Code Green Solar and Businesses 1 through 5; • fraudulent emails to purporting to be from a utility company verifying that the utility company had installed electric meters at Businesses 1 through 5; and
• annual reports for years 2013, 2014, 2015, 2016 and 2017, which falsely certified that the panels at Businesses 1 through 5 were still generating electricity, and which Code Green Solar was required to send for five years in order to keep the rebate money.

The wire fraud charge to which Kartsaklis pleaded guilty carries a maximum potential penalty of 20 years in prison and a $250,000 fine. Kartsaklis has agreed to make full restitution in the amount of $3,081,938. Sentencing is scheduled for Aug. 23, 2019.

U.S. Attorney Carpenito credited special agents of the FBI, Philadelphia Division, South Jersey Resident Agency, under the direction of Special Agent in Charge Michael Harpster, and special agents of the U.S. Treasury Department, Office of Inspector General, under the direction of Special Agent in Charge Anthony Scott, with the investigation leading to today’s guilty plea.

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

Defense counsel: Justin R. White Esq. and Michael L. Testa Sr. Esq., Vineland, New Jersey

A Ukrainian national charged with participating in a years-long, international scheme to infect computers with malware through online advertisements – so-called “malvertising” – will appear in Newark, New Jersey federal court today after being extradited from the Netherlands, Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and U.S. Attorney Craig Carpenito for the District of New Jersey announced.

Oleksii Petrovich Ivanov, 31, is charged by indictment with one count of conspiracy to commit wire fraud, four counts of wire fraud, and one count of computer fraud.  The indictment was returned on Dec. 3, 2018, and unsealed upon his arrival in the United States on May 2, 2019. Ivanov is scheduled to appear today before U.S. Magistrate Judge James B. Clark III in Newark federal court and was detained without bail.

“Cyber criminals who harm victims in the United States and around the world cannot rely on fake identities and international borders to evade justice,” said Assistant Attorney General Benczkowski.  “This case and today’s extradition demonstrate that the United States and its international partners will find cyber fugitives and bring them to face justice in the United States, no matter where they commit their crimes.”

“This defendant engaged in an extraordinary and far-reaching scheme to infect and hack computers throughout the United States and the world,” said U.S. Attorney Carpenito.  “This ‘malvertising’ scheme is especially dangerous because it uses online ads to target millions of unsuspecting Internet users engaged in activities as routine as booking their next vacation.”

Ivanov was arrested on Oct. 19, 2018, following an international investigation led by the U.S. Secret Service and in coordination with Dutch law enforcement.  He had been detained by the Dutch authorities pending the resolution of the extradition proceedings. 

According to the indictment, unsealed in Newark federal court on May 2, 2019, and other court filings, between around October 2013 through May 2018, Ivanov conspired to defraud millions of internet users around the world by launching malicious online advertising campaigns that appeared legitimate, but attempted to direct the internet browsers of victim computers towards malicious computer programs (“malware”), unwanted advertisements, and other computers that could install malware.  As a result of the scheme, Ivanov and others caused unsuspecting internet users to view or access malicious advertisements on more than one hundred million occasions. 

Online advertising companies work with companies and individuals to publish their online advertisements on the internet.  These companies place advertisements on third-party websites, such as shopping, news, entertainment, or sports websites.  These advertisements include web banners, frame ads, and other graphical advertisements and are delivered through websites that are accessed by computer users. 

To carry out the scheme, Ivanov and co-conspirators are alleged to have used fake online personas and fake companies to pose as legitimate advertisers seeking to purchase online advertisements.  According to the indictment, Ivanov and his co-conspirators told the advertising companies they were distributing ads for real products and services, and even created false banners and websites showing purported advertisements.  But, in reality, the advertisements they purchased were used to push malware out to the computers of victims who viewed or clicked on the advertisements.

For instance, in June and July 2014, the defendant allegedly posed as “Dmitrij Zaleskis,” CEO of a fake United Kingdom company called “Veldex Limited” to submit a series of malicious advertisements to a U.S.-based internet advertising company for distribution, including two campaigns submitted on July 15, 2014 that were viewed or accessed approximately 17,328,129 times in a matter of days.  The internet advertising company repeatedly told Ivanov that his advertisements were being flagged as malware threats, but Ivanov denied any wrongdoing and persuaded the company to continue running his malicious advertisements for months. 

After online advertisers and advertising server platforms flagged many of the co-conspirators’ advertisements as malicious, Ivanov and others are alleged to have lied and denied that their advertisements were malicious.  When their advertisements were banned as malicious, they switched to new online advertising companies and used new fake identities to buy more advertisements. 

Ivanov and co-conspirators also allegedly used false identities to register internet domains that hosted malicious advertisements, and launch purported advertising campaigns.  Ivanov and others also allegedly attempted to enrich themselves by offering to sell access to networks of infected devices or “botnets.  Ivanov is alleged to have successfully infected or aided and abetted the infection of computers with malware that he controlled, including botnet malware that infected more than one hundred devices in the District of New Jersey.

The investigation was conducted by the U.S. Secret Service Criminal Investigations, under the direction of Director Director James M. Murray, and the Newark Field Office under the direction of Special Agent in Charge Mark McKevitt.  Substantial support was also provided by the Secret Service’s Attaché Office in The Hague and the Justice Department’s Office of International Affairs in coordinating the extradition of Ivanov.  The Department thanks the public prosecutors of the Dutch National Public Prosecution Service, the National High Tech Crime Unit of the Dutch National Police, and the National Crime Agency (UK) for their tremendous assistance with this case.

Trial Attorney Aarash Haghighat of the Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS), Chief Justin S. Herring of the U.S. Attorney’s Office Cybercrimes Unit and Assistant U.S. Attorneys Melissa Wangenheim and Dara Govan of the District of New Jersey are prosecuting the case. 

An indictment merely contains allegations, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law. 

NEWARK, N.J. – A Ukrainian national charged with participating in a years-long, international scheme to infect computers with malware through online advertisements – so-called “malvertising” – will appear in Newark federal court today after being extradited from the Netherlands, U.S. Attorney Craig Carpenito for the District of New Jersey and Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division announced.

Oleksii Petrovich Ivanov, 31, is charged by indictment with one count of conspiracy to commit wire fraud, four counts of wire fraud, and one count of computer fraud. The indictment was returned on Dec. 3, 2018, and unsealed upon his arrival in the United States on May 2, 2019. Ivanov appeared today before U.S. Magistrate Judge U.S. Magistrate Judge James B. Clark III in Newark federal court and was detained without bail.

“This defendant engaged in an extraordinary and far-reaching scheme to infect and hack computers throughout the United States and the world,” U.S. Attorney Carpenito said. “This ‘malvertising’ scheme is especially dangerous because it uses online ads to target millions of unsuspecting Internet users engaged in activities as routine as booking their next vacation.”

“Cyber criminals who harm victims in the United States and around the world cannot rely on fake identities and international borders to evade justice,” said Assistant Attorney General Benczkowski. “This case and today's extradition demonstrates that, through international cooperation, we are able to bring cyber thieves to justice in the United States, wherever they may commit their crimes.”

Ivanov was arrested Oct. 19, 2018, following an international investigation led by the U.S. Secret Service in coordination with Dutch law enforcement. He had been detained by Dutch authorities pending the resolution of the extradition proceedings.

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

From October 2013 through May 2018, Ivanov conspired to defraud millions of internet users around the world by launching malicious online advertising campaigns that appeared legitimate, but attempted to direct victims’ browsers to malicious computer programs (malware), unwanted advertisements, and other computers that could install malware. Ivanov and others caused unsuspecting users to view or access malicious advertisements on more than 100 million occasions. 

Ivanov and his conspirators used fake online personas and fake companies to pose as legitimate advertisers seeking to purchase online advertisements. They told the advertising companies they were distributing ads for real products and services, and even created false banners and websites showing purported advertisements. The advertisements they purchased were used instead to push malware out victims.

For example, in June and July 2014, Ivanov posed as “Dmitrij Zaleskis,” CEO of a fake United Kingdom company called “Veldex Limited,” to submit a series of malicious advertisements to a United States-based internet advertising company for distribution, including two campaigns submitted on July 15, 2014, that were viewed or accessed 17,328,129 times in a matter of days. The internet advertising company repeatedly told Ivanov that his advertisements were being flagged as malware threats, but Ivanov denied any wrongdoing and persuaded the company to continue running his malicious advertisements for months. 

After online advertisers and advertising server platforms flagged many of the conspirators’ advertisements as malicious, Ivanov and others lied and denied that their advertisements were malicious. When their advertisements were banned as malicious, they switched to new online advertising companies and used new fake identities to buy more advertisements. 

Ivanov and his conspirators also used false identities to register internet domains that hosted malicious advertisements, and launch purported advertising campaigns. Ivanov and others also attempted to enrich themselves by offering to sell access to networks of infected devices or “botnets.” Ivanov successfully infected or aided and abetted the infection of computers with malware that he controlled, including botnet malware that infected more than 100 devices in New Jersey.

U.S. Attorney Carpenito and Assistant Attorney General Benczkowski credited special agents of the U.S. Secret Service, Criminal Investigations, under the direction of Director James M. Murray, and the Newark Field Office, under the direction of Special Agent in Charge Mark McKevitt, for the investigation leading to the indictment. Substantial support was also provide by the Secret Service’s Attaché Office in The Hague and the Justice Department’s Office of International Affairs in coordinating the extradition of Ivanov. The Department also thanks the public prosecutors of the Dutch Ministry of Security and Justice, the National High Tech Crime Unit of the Dutch National Police, and the National Crime Agency (UK) for their assistance with this case.

The wire fraud conspiracy and substantive wire fraud counts with which Ivanov is charged carry a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gain or victim loss from the offense. Ivanov is also charged with a computer fraud count that carries a maximum potential penalty of five years in prison and a $250,000 fine, or twice the gain or loss from the offense. 

The government is represented by Justin S. Herring, Chief of the U.S. Attorney’s Office Cybercrimes Unit, and Assistant U.S. Attorneys Melissa Wangenheim and Dara Govan, District of New Jersey, and Aarash Haghighat, Trial Attorney with the Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS).

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

NEWARK, N.J. – A Pennsylvania man was sentenced today to 60 months in prison for using his position as an employee of the U.S. Army Contracting Command New Jersey (ACC-NJ) in connection with his role in two conspiracies in construction projects at Picatinny Arsenal (PICA) and Joint Base McGuire-Dix Lakehurst (Ft. Dix), U.S. Attorney Craig Carpenito announced.

Kevin Leondi, 58, of Stroudsberg, Pennsylvania, previously pleaded guilty before U.S. District Judge Susan D. Wigenton to Counts One and Two of a superseding indictment charging him with conspiring to defraud the United States by soliciting and accepting bribes, and conspiring to steer kickbacks from one conspirator to another. Judge Wigenton imposed the sentence today in Newark federal court.

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

Leondi represented the Army in renovation projects at PICA and Ft. Dix. A company referred to in the indictment as “Construction Company No. 1” served as a Job Order Contractor, also known as a “prime contractor,” for construction projects at PICA and Fort Dix. James Conway was employed by Construction Company No. 1 as a regional project manager of large-scale projects at PICA and Ft. Dix. George Grassie ran a construction, excavating and landscaping business in Pennsylvania that did subcontracting work at the bases. 

From December 2010 through August 2015, Leondi solicited and accepted more than $150,000 in bribes from Grassie and others in return for task orders and other favorable assistance at the bases, and for not denying them future work. Leondi and the conspirators would disguise the bribes in the form of facially legitimate transactions, with Leondi buying vehicles and equipment from the conspirators at cut-rate prices or selling them equipment at inflated prices. In another instance, Leondi had Grassie absorb the costs that another contractor incurred in renovating property that Leondi owned in East Stroudsburg, Pennsylvania.

Leondi also admitted that he conspired to steer at least $48,000 in corporate kickbacks from Grassie to Conway to improperly obtain and reward Conway for his giving subcontracts and other favorable assistance to Grassie relating to Conway’s employer’s contracts with the federal government at PICA and Ft. Dix. The kickbacks included cash payments to help Conway pay his mortgage as well as free construction work at Conway’s home in Pennsylvania.

Grassie pleaded guilty in February 2017 to one count of conspiracy and one count of providing unlawful kickbacks for his role in the bribery and kickback conspiracies. Conway pleaded guilty to accepting unlawful kickbacks and a wire fraud charge involving other fraudulent conduct in August 2016. Both defendants are awaiting sentencing.   

In addition to the prison term, Judge Wigenton sentenced Leondi to three years of supervised release and fined him $25,000.

U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie; the U.S. Department of Defense, Defense Criminal Investigative Service, under the direction of Special Agent in Charge Leigh-Alistair Barzey; and the U.S. Army, Major Procurement Fraud Unit, Criminal Investigation Command, under the direction of Special Agent in Charge Larry Scott Moreland, with the investigation leading to today’s sentencing.    

The government is represented by Senior Trial Counsel Leslie Faye Schwartz and Senior Trial Counsel Mark J. McCarren, of the U.S. Attorney’s Office’s Special Prosecutions Division.

CAMDEN, N.J. – An Atlantic City man was sentenced today to 264 months in prison for his role in a drug trafficking and money laundering in the Atlantic County area, U.S. Attorney Craig Carpenito announced.

Toye Tutis, 46, previously pleaded guilty before U.S. District Judge Jerome B. Simandle to Count One of a second superseding indictment, charging him with conspiracy to distribute and possess with intent to distribute cocaine, crack cocaine and heroin, and Count 13 charging him with conspiring with his long-time paramour, Jazmin Vega, 45, to launder his drug trafficking proceeds. Vega also pleaded guilty to the conspiracy to launder Tutis’ drug proceeds in Count 13 and is scheduled to be sentenced June 14, 2019.

“Defendant Tutis laundered more than just clothing at his Atlantic City laundromat – he also laundered the proceeds of his significant heroin and cocaine drug trafficking ring,” U.S. Attorney Carpenito said. “The sentence handed down today punctuates the end of both his drug trafficking and his money laundering activities, and is yet another example of our efforts to clean up the streets of Atlantic City and the towns surrounding it.”

“This defendant littered the streets of Atlantic City and surrounding areas with dangerous drugs and then washed the money through his laundromat, various businesses and multiple real estate transactions,” FBI Newark Special Agent-in-Charge Gregory W. Ehrie said. “The magnitude of his crimes may never be fully known but his actions fed a deadly drug epidemic that claims countless lives. The FBI is committed to working with our local, state and federal law enforcement partners to drive drug traffickers like Toye Tutis out of business and rid the community of these threats to public health and public safety.”

“Mr. Tutis’ actions show his main concern was making a profit off the misery of others,” said Susan A. Gibson, Special Agent in Charge of the Drug Enforcement Administration’s New Jersey Division.  “His term in federal prison will allow him to experience some misery of his own. DEA and our law enforcement partners will continue to pursue those who choose to poison our community.”

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

From 2010 through December 2014, Tutis operated a large-scale drug trafficking ring out of the Ta’Ja Laundromat in Atlantic City, purchasing and distributing between 150 to 450 kilograms of cocaine and approximately 26 kilograms of heroin, and laundering between $1.5 million and $3 million in drug proceeds. Tutis was aided by Vega, who admitted to laundering his drug trafficking proceeds in several ways, including through the couple’s various businesses – Ta’Ja Construction I LLC; Ta’Ja Real Estate Investors LLC; and Integrity Heating and Cooling LLC; and by purchasing more than 30 properties with tainted funds. As part of their plea agreements, Vega and Tutis have to forfeit 20 properties, cash and other assets.

In addition to the prison term, Judge Simandle sentenced Tutis to five years of supervised release.

Nine other people have pleaded guilty to participating in the drug trafficking conspiracy or other related drug trafficking in the Atlantic County area, including:

• Kabaka Atiba, 49, of Atlantic City, sentenced on Oct. 16, 2017, to 120 months in prison and five years of supervised release;
• Tozine Tiller, 45, of Absecon, sentenced on Jan. 3, 2018, to 235 months in prison and five years of supervised release;
• TeJohn Cooper, 45, of Galloway Township, sentenced on Sept. 12, 2017, to 96 months in prison and one year of supervised release;
• Ronald Douglas Byrd, 53, of Pleasantville, sentenced on July 11, 2017, to 96 months in prison and five years of supervised release;
• Kareem Taylor, 43, of Atlantic City, sentencing scheduled for June 3, 2019;
• Talib Tiller, 46, of Mays Landing, sentenced on Sept. 5, 2017, to 57 months in prison and three years of supervised release;
• John Wellman, 43, of Somers Point, sentenced on July 13, 2017, to 130 months in prison and five years of supervised release;
• Phillip Horton, 53, of Los Angeles, California, sentencing scheduled for June 3, 2019;
• and Francisco Alberto Rascon-Muracami, 25, of Obregon, Mexico, sentenced on Oct. 30, 2015, to 70 months in prison and five years of supervised release.

U.S. Attorney Carpenito credited special agents of the FBI’s Newark Division, Atlantic City Resident Agency, under the direction of Special Agent in Charge Gregory W. Ehrie; the DEA’s New Jersey Division, under the direction of Special Agent in Charge Susan A. Gibson; the Atlantic County Prosecutor’s Office, under the direction of Prosecutor Damon G. Tyner; and the Atlantic City Police Department, under the direction of Police Chief Henry White, with the investigation leading to today’s sentencing.

He also thanked the N.J. State Police; the Pennsylvania State Police, the Atlantic County Sheriff’s Office; the Bureau of Alcohol, Tobacco and Firearms; U.S. Immigration and Customs Enforcement (ICE)-Homeland Security Investigation (HSI); U.S. Postal Inspection Service; Cumberland County Sheriff’s Office and the Ventnor, Northfield and Millville police departments for their assistance.

The government is represented by Assistant U.S. Attorneys Diana Carrig of the Camden Division, Jonathan M. Peck of the Newark Division and Peter W. Gaeta of the Asset Recovery and Money Laundering Unit.

NEWARK, N.J. – A Union County, New Jersey, man was arrested and charged today for allegedly robbing a New Jersey business owner at gunpoint in February 2019, U.S. Attorney Craig Carpenito announced.

Raymond Scura, 29, of Kenilworth, New Jersey, is charged by complaint with one count of Hobbs Act robbery and one count of brandishing a firearm during a crime of violence. He is scheduled to appear this afternoon before U.S. Magistrate Judge James B. Clark III in Newark federal court. Scura previously was arrested and charged in March 2019 with wire fraud and aggravated identity theft.

According to the complaints and other documents filed in this case:

In February 2019, Scura was a customer of an internet-based business owned and operated by the victim. Scura wrote at least one fraudulent check to the victim to pay for the services of the business. When the victim insisted on cash payment, Scura drove with the victim to a bank, where Scura brandished a firearm, threatened to kill the victim, and demanded that the victim deposit a fraudulent check into the victim’s bank account and withdraw the same amount of money as set forth in the check. Scura led the victim to an ATM, where he directed the victim to insert the victim’s bank card into the ATM, asked for the victim’s PIN, input the PIN himself, and deposited the check. Scura then led the victim to a teller, where the victim withdrew the money as directed. Scura and the victim left the bank, where Scura demanded, at gunpoint, that the victim hand him the money withdrawn at the bank.

Scura was charged by complaint in March 2019 with allegedly defrauding various individuals and entities by obtaining and attempting to obtain merchandise, services, and cash. In some circumstances, Scura obtained goods and services, including a country club membership, limousine services, luxury hotel expenses, wine, and a Rolex watch, by charging such items to credit card accounts that were not his own and which he did not have authorization to access or use. Scura also wrote and presented personal checks both in his own name and in the name of victims from accounts Scura knew were either closed or held insufficient funds to cover the checks.

The count of brandishing a firearm during a crime of violence carries a mandatory minimum sentence of seven years in prison, which must be served consecutively to any other sentence imposed. The Hobbs Act robbery charge carries a statutory maximum of 20 years in prison and a $250,000 fine, or twice the gain or loss from the offense. The wire fraud affecting a financial institution charge carries a statutory maximum of 30 years in prison and a $1 million fine, and the aggravated identity theft charge carries a mandatory minimum sentence of two years in prison, which must be served consecutively to any other sentence imposed.

U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, and members of the Belleville Police Department, under the direction of Chief of Police Mark Minichini, with the investigation leading to the charges against Scura. He also thanked the Summit Police Department, the Union County Prosecutor’s Office, the Burlington County Prosecutor’s Office, and the Evesham Police Department for their assistance.

The government is represented by Assistant U.S. Attorney Elaine K. Lou of the U.S. Attorney’s Office’s Criminal Division in Newark.

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

Defense counsel: Anthony Iacullo Esq., Clifton, New Jersey

CAMDEN, N.J. – The president of a staffing company was sentenced today to 36 months in prison for defrauding a commercial finance lending company out of more than $400,000, U.S. Attorney Craig Carpenito announced.

Jeremy Hare, 48, of Philadelphia, previously pleaded guilty before U.S. District Judge Renee Marie Bumb to an information charging him with wire fraud. Judge Bumb imposed the sentence today in Camden federal court.

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

Hare was the president and managing member of Apollo Search Partners LLC, a staffing agency with an office in New Jersey. On June 16, 2017, Hare had Apollo enter into a financing agreement with a commercial finance lender that offered funding to companies so that they could meet payroll and other obligations. The lender agreed to provide funding to Apollo. In order to get funding, Apollo would provide the Victim Company invoices and supporting time cards for each person Apollo staffed with a client.

Between June 20, 2017 and Aug. 15, 2017, Hare submitted more than 15 invoices to the lender even though Apollo never staffed most of the individuals listed on the invoices and the time sheets submitted with the invoices included hours that were never worked. Based on those invoices, the lender provided more than $400,000 to Apollo between June and August 2017. To date, the lending company has not received reimbursement for that funding.

In addition to the prison term, Judge Bumb sentenced Hare to three years of supervised release and ordered him to pay $411,838 in restitution.

U.S. Attorney Carpenito credited and 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.

The government is represented by Assistant U.S. Attorneys Andrew Kogan of the U.S. Attorney’s Office Cybercrime Prevention and Enforcement Unit and Sarah Devlin of the Asset Recovery and Money Laundering Unit in Newark.

Defense counsel: Ronald L. Greenblatt Esq., Philadelphia

NEWARK, N.J. – A Union County, New Jersey, man today admitted his role in a scheme to bribe mail carriers to steal credit cards from the mail, U.S. Attorney Craig Carpenito announced.

Olagoke Araromi, 22, of Union, New Jersey, pleaded guilty before U.S. District Judge Katharine S. Hayden in Newark federal court to a three-count information charging him with bribery of U.S. Postal Service mail carriers, bank fraud and aggravated identity theft.

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

Araromi and Moussa Dagno, 24, of Harrison, New Jersey, recruited at least a half dozen U.S. Postal Service (USPS) mail carriers and employees to steal credit cards from the mail in exchange for cash bribes, typically $100 per stolen card. Once Araromi had taken possession of the stolen credit cards and activated them, he and Dagno would use the cards to purchase high-end electronics and clothing at various retail stores throughout New Jersey. In February, 2018 law enforcement seized six laptops and a smartphone from the Harrison residence shared by Araromi and Dagno at that time, all of which had been purchased with the stolen credit cards.

Several of the USPS employees who accepted bribes from Araromi and Dagno have already pleaded guilty to bribery charges, including: former mail carriers Zenobia Gilmer, Ayesha Troztz and Kyanne Costley, who had delivery routes in Mt. Arlington, East Orange and Elizabeth, New Jersey; and Jennel Williams, who formerly worked as a clerk in the Newark Main Post Office. All four admitted to stealing credit cards from the mail and delivering them to Araromi or Dagno in exchange for payments, and all are awaiting sentencing. A fifth mail carrier from Jersey City, Jacquan Miller, has been charged by complaint for his role in the scheme. On April 8, 2019, Dagno pleaded guilty to the same charges to which Araromi pleaded guilty today, and is awaiting sentencing.

The bribery charge to which Araromi pleaded guilty carries a maximum potential penalty of 15 years in prison; the bank fraud charge carries a maximum penalty of 30 years in prison. The aggravated identity theft charge carries a mandatory sentence of two years in prison which must be served consecutively to any sentence Araromi receives on the bribery and bank fraud charges. The bank fraud charge carries a maximum potential fine of $1 million; the maximum potential fine for each of the bribery and the aggravated identity theft charge is $250,000. Sentencing is currently scheduled for Sept. 9, 2019.

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

The government is represented by Assistant U.S. Attorneys Mark J. McCarren and Jihee G. Suh of the U.S. Attorney’s Special Prosecutions Division in Newark.

The charges and allegations against Jacquan Miller are merely accusations, and he is presumed innocent unless and until proven guilty.

Defense Counsel: Anthony J. Iacullo Esq. & Joshua Reinitz Esq., Nutley, New Jersey

NEWARK, N.J. – A federal jury today found a Paterson, New Jersey, man guilty of two counts of drug trafficking offenses, U.S. Attorney Craig Carpenito announced. 

Reinaldo Rodriguez, 30, a/k/a “Memo,” and “Killa,” was convicted of conspiracy to distribute a kilogram or more of heroin and possession with the intent to distribute heroin following a four-day trial before U.S. District Judge Susan D. Wigenton in Newark federal court.

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

From June 2015 through April 20, 2016, Rodriguez participated in a conspiracy to distribute heroin to street-level drug dealers in the Paterson area. The conspirators obtained their heroin from a supplier in Bronx, New York, where it was packaged and stamped “Goosebumps,” “Transformers,” “Wendy’s” and “New Jack City,” designating the source. Law enforcement officials conducted surveillance while Rodriguez delivered stamped “bricks” of heroin to a confidential source. Rodriguez was heard discussing drug trafficking on court-authorized wiretaps.

Rodriguez faces a mandatory minimum term of imprisonment of 10 years and a maximum of life in prison for the conspiracy count. 

U.S. Attorney Carpenito credited special agents and task force officers of the U.S. Drug Enforcement Administration, New Jersey Division, under the direction of Special Agent in Charge Susan A. Gibson, and the Paterson Police Department, with the investigation leading to today’s conviction.

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 Senior Trial Counsel Jamie L. Hoxie of the OCDETF/Narcotics Unit and Assistant U.S. Attorney Heather Suchorsky of the Organized Crime/Gangs Unit of the U.S. Attorney’s Office in Newark.

NEWARK, N.J. – An Essex County, New Jersey, man has been indicted on an additional charge stemming from his role as the leader of a drug trafficking organization that dealt heroin and crack cocaine in and around Newark, U.S. Attorney Craig Carpenito announced today.

Keith Herd, 31, of Newark, is charged in a second superseding indictment, returned April 24, 2019, with one count of engaging in a continuing criminal enterprise. Herd was charged by indictment in August 2018 with two counts of distribution and possession with intent to distribute heroin. A superseding indictment in October 2018 added one count of conspiracy to distribute and possess with the intent to distribute one kilogram or more of heroin. Herd and his co-defendants will be arraigned on the new indictment at a date to be determined.

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

Herd was the main heroin supplier in and around Hayes Street and 14th Avenue in the area of the New Community Corporation community development (NCC) and the leader of the Brick City Brim set of the Bloods street gang within NCC. In addition to selling narcotics in and around NCC, Herd and members of the organization alerted each other to police and rival gang member or drug dealer presence within NCC, shared narcotics supplies, narcotics proceeds, customers, and raised money for each other following arrests. 

If convicted, Herd faces mandatory term of life in prison.

Herd was originally charged by complaint along with 10 other individuals in March 2018.  An additional 17 individuals were charged by complaint in April and August of 2018. Furad Loyal, 37, Tyrone Brown, 35, and Raheem Tarry, 33, all of Newark, are indicted with Herd on narcotics conspiracy, distribution, and possession charges for their respective roles in the NCC drug trafficking organization. Loyal also faces firearms possession charges.

U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, and members of the Newark Department of Public Safety, under the direction of Director Anthony F. Ambrose, with the investigation leading to the charges. He also thanked the Essex County Prosecutor’s Office, the Essex County Sheriff’s Office, the New Jersey Department of Corrections, New Jersey State Parole, and the U.S. Marshals for their assistance.

Herd and the NCC drug trafficking organization were part of the original 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 sole purpose of combatting violent crime in and around the 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’s New Jersey Division, the U.S. Marshals, the Newark Department of Public Safety, the Essex County Prosecutor’s Office, the Essex County Sheriff’s Office, New Jersey State Parole, Union County Jail, New Jersey State Police Regional Operations and Intelligence Center/Real Time Crime Center, New Jersey Department of Corrections, the East Orange Police Department, and the Irvington Police Department. 

The government is represented by Assistant U.S. Attorney Elaine K. Lou of the U.S. Attorney’s Office’s Criminal Division in Newark.

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

CAMDEN, N.J. – A Camden County, New Jersey man today admitted his role in a scheme to possess and distribute crystal methamphetamine, U.S. Attorney Craig Carpenito announced.

Mauricio Melendrez, 46, of Blackwood, New Jersey, pleaded guilty before U.S. District Judge Jerome B. Simandle in Camden federal court to an information charging him one count of attempt to distribute and possess with intent to distribute five grams or more of crystal methamphetamine.

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

In May 2014, Melendrez arranged for the delivery of a package containing approximately two pounds of crystal methamphetamine stuffed inside a 4-slice toaster oven. Before the package could be delivered to its intended address on June 3, 2014, law enforcement seized it. Melendrez later discussed this package of crystal methamphetamine with another individual and stated it had been sent to him by a “cartel,” and that Melendrez still owed the cartel money for the crystal methamphetamine.

U.S. Attorney Carpenito credited special agents of the Drug Enforcement Administration, under the direction of Susan A. Gibson in Newark, with the investigation leading to today’s guilty plea.

The count to which Melendrez pleaded guilty carries a mandatory minimum penalty of five years in prison, a maximum of 40 years in prison, and a fine of up to $5 million, or twice the gross gain or loss resulting from the offense. Sentencing is scheduled for Aug. 1, 2019.

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

TRENTON, N.J. – A Passaic County, New Jersey, man today admitted opening bank accounts and recruiting others to open bank accounts as a conduit for stolen funds in connection with a wide-ranging business email compromise scheme, U.S. Attorney for the District of New Jersey Craig Carpenito announced.

Lawrence Espaillat, 41, of Clifton, New Jersey, pleaded guilty before U.S. District Judge Peter G. Sheridan in Trenton federal court to an information charging him with one count of conspiracy to commit wire fraud.

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

From March 2017 to June 2018, Espaillat, conspirators Corry Pringley and Amanda Suazo, and others participated in the scheme to steal more than $1 million dollars from individual and corporate victims. The scheme involved recruiting “mules” – including Espaillat, before he rose to the level of recruiter – Suazo and Pringley, to provide their personal identifying information. This information was used to incorporate sham businesses with the N.J. Department of the Treasury under the mules’ names. The mules eventually opened bank accounts in the names of the sham corporations.

A related cyberattack aspect of the scheme involved creating email addresses mimicking – but differing slightly from – legitimate email addresses of supervisory employees at various companies, vendors that did business with those victim companies, mortgage lenders that dealt with individuals in connection with real estate purchases, and brokerage firms and accountants who provided financial services. The conspirators used these deceptive email addresses to send emails that appeared to be requests for payment of legitimate invoices or debts owed by the victims. The victims were deceived into transferring funds by wire into the bogus bank accounts opened by the money mules and controlled by the conspirators. After the victims complied with the fraudulent wiring instructions, Espaillat, Suazo and Pringley, under the direction of other conspirators, quickly debited thousands of dollars from the accounts through in-person and ATM withdrawals and debit card purchases. They also transferred the funds to foreign bank accounts they controlled. Espaillat, Suazo and Pringley kept a fraction of the proceeds as payment.

For example, over a three-day period in April 2018, a corporate victim in Texas deposited $3.8 million dollars in a bank account opened by Pringley and controlled by Espaillat, Pringley and Suazo, who withdrew or transferred more than $1 million from the account.

The conspiracy charge to which Espaillat pleaded guilty carries a maximum penalty of 20 years in prison and a fine of $250,000, or twice the gross pecuniary gain/loss. Sentencing is scheduled for July 30, 2019.

Suazo and Pringley pleaded guilty on Jan. 17, 2019, and Feb. 14, 2019, respectively, to separate informations charging each with one count of conspiracy to commit wire fraud. They are awaiting sentencing.

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

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

NEWARK, N.J. – A member of then-Gov. Christopher J. Christie’s senior staff was sentenced today to 13 months in prison for her role in a scheme to punish the mayor of Fort Lee, New Jersey, by misusing Port Authority resources to cause traffic problems in the borough, Attorney for the United States Mark Coyne announced.

Bridget Anne Kelly, 46, former deputy chief of staff to Gov. Christie, and co-defendant William E. Baroni, 47, formerly the deputy executive director of the Port Authority, were each convicted on Nov. 4, 2016, following a six-week trial before U.S. District Judge Susan D. Wigenton on all seven counts with which they had been charged. Judge Wigenton imposed the sentence today in Newark federal court.

Kelly and Baroni were each convicted of conspiring to misuse, and actually misusing, property of an organization receiving federal benefits; conspiring to commit, and actually committing, wire fraud; conspiring to injure and oppress certain individuals’ civil rights, and acting under color of law to deprive certain individuals of their civil rights. Kelly was originally sentenced to 18 months in prison and Baroni was originally sentenced to 24 months in prison.

The defendants both appealed their convictions. In a unanimous, precedential opinion, the U.S. Court of Appeals for the Third Circuit on Nov. 27, 2018, affirmed five of seven convictions for each defendant, upholding all but the civil rights counts of conviction and remanding the case to Judge Wigenton for resentencing. Baroni was resentenced Feb. 26, 2019, to 18 months in prison.

All of the charges relate to the defendants’ scheme to manufacture traffic problems in Fort Lee by, without public warning, reducing from three to one the number of local access lanes, located in Fort Lee, to the upper level of the George Washington Bridge, and the toll booths servicing those lanes. This was done to punish Mayor Mark Sokolich for not endorsing Gov. Christie’s re-election bid.

A third conspirator, David Wildstein, the former director of Interstate Capital Projects at the Port Authority, pleaded guilty May 1, 2015, to a separate information charging him with two counts of conspiracy for his role in the scheme. Wildstein pleaded guilty to conspiring to misuse the property of an organization receiving federal benefits and conspiring to injure and oppress certain individuals’ civil rights in connection with his role in causing traffic problems to punish Mayor Sokolich. Wildstein was sentenced July 12, 2017, to three years of probation.

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

In August 2013, after Kelly confirmed that Mayor Sokolich would not be endorsing Gov. Christie for re-election in November 2013, Baroni, Kelly, and Wildstein decided to punish the mayor by deliberately causing significant traffic problems in Fort Lee under the false pretense of a traffic study.

From the morning of Sept. 9, 2013, to Sept. 13, 2013, they caused the local access lanes to be reduced so that only one toll booth, instead of the usual three, was accessible to the approach to the bridge for local traffic traveling through Fort Lee. To maximize the congestion and the punitive impact on Mayor Sokolich, Baroni, Kelly and Wildstein caused these lane and toll booth reductions to start on the first day of the school year without any advance notice to Mayor Sokolich, the Fort Lee chief of police or borough residents. The lane and toll booth reductions resulted in significant traffic in Fort Lee, for motorists intending to access the George Washington Bridge from local lanes and for residents, whose streets were choked with traffic.

The conspirators agreed to disregard any inquiries from Mayor Sokolich and other Fort Lee officials about the lane and toll booth reductions. They purposely ignored communications from Mayor Sokolich, including his pleas for help, requests for information, and repeated warnings about the increased risks to public safety. On Sept. 9, 2013, after Baroni received an email that Mayor Sokolich had called about an urgent matter of public safety, Wildstein sent an email to Baroni reiterating that Baroni should maintain “radio silence” toward the mayor. On Sept. 10, 2013, Kelly sent Wildstein a text message stating: “I feel badly about the kids … I guess,” to which Wildstein replied, “They are the children of Buono voters …” a reference to Christie’s opponent in the gubernatorial election, state Sen. Barbara Buono (D-Middlesex).

When Kelly was made aware of Mayor Sokolich’s communication regarding an urgent matter of public safety, she thanked Wildstein for confirming that Baroni had maintained “[r]adio silence” toward Mayor Sokolich. On Sept. 12, 2013, Baroni instructed a Port Authority employee through coded language that the employee should not contact Mayor Sokolich.

The three conspirators concocted and promoted a sham story that the lane reductions were for a traffic study. They created and advanced this cover story so they could use Port Authority property, including the time and services of unwitting Port Authority personnel and other resources, to implement the lane and toll booth reductions and conceal their true punitive purpose.

On Nov. 25, 2013, with Kelly’s and Wildstein’s knowledge, Baroni provided false and misleading testimony about the lane and toll booth reductions to the N.J. Assembly Transportation, Public Works, and Independent Authorities Committee.

In addition to the prison term, Judge Wigenton sentenced Kelly to one year of supervised release, fined her $2,800 and ordered her to pay restitution of $14,314.

Attorney for the United States Coyne credited criminal investigators of the Port Authority, Office of Inspector General, under the direction of Inspector General Michael Nestor; special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie; and criminal investigators of the U.S. Attorney’s Office, for the investigation leading to today’s sentencing.   

The government is represented by Assistant U.S. Attorneys Lee M. Cortes Jr., Vikas Khanna, David W. Feder and Senior Litigation Counsel J Fortier Imbert of the U.S. Attorney’s Office Special Prosecutions Division.

TRENTON, N.J. – Two Trenton police officers have been charged with civil rights and obstruction of justice charges for allegedly assaulting a man they were arresting, U.S. Attorney Craig Carpenito announced today.

One of the officers, who has since left the Trenton Police Department, is charged with additional civil rights and obstruction counts for allegedly assaulting a second defendant while in a holding cell at Trenton Police Headquarters.

Trenton Police Officer Drew Inman, 25, of Hamilton, New Jersey, and former Trenton Police Officer Anthony Villanueva, 25, of Ewing, New Jersey, are charged in a six-count indictment that was returned by a federal grand jury on April 18, 2019, and unsealed today. Both defendants are charged with one count aiding and abetting one another to deprive a man of his civil rights. Villanueva is charged with two counts of obstruction, and Inman with one count of obstruction, in connection with that incident. Villanueva is also charged with depriving a second man of his civil rights in a separate incident, and with obstruction related to that second incident.

“Police work is difficult and dangerous, but officers need to respect the civil rights of the people they are policing,” U.S. Attorney Carpenito said. “They cannot resort to excessive force in performing their duties. Incidents like these erode the public’s confidence in law enforcement, and make policing harder for everyone whose job it is to keep our communities safe.”

“Civil Rights violations are of great concern, particularly when the allegations involve a member of law enforcement,” FBI Newark Special Agent in Charge Gregory W. Ehrie said. “The public has an absolute right to trust that law enforcement will protect those they serve and keep them safe. When that trust is violated, it makes it more difficult for our fellow police officers and federal agents to maintain the community's  confidence.”

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

On April 9, 2017, a Trenton man involved in a routine traffic stop fled in his vehicle and then on foot and was pursued by Trenton police officers. The man was eventually surrounded by Trenton police officers and complied when he was ordered to put his hands in the air. While the man was complying with further police commands, Villanueva approached the man and punched him in the face and Inman tackled the man to the ground. Inman and Villanueva then punched the man numerous times, while he cried out in pain, and told officers, “stop hitting me in my face,” and “you’ve got my hands.”

Inman and Villanueva returned to the police station to prepare reports in connection with the victim’s arrest. To justify their actions against the victim, Inman and Villanueva prepared and submitted false and fraudulent reports, in which they attempted to portray the victim as the aggressor and an ongoing threat.

On Nov. 28, 2017, Villanueva, who had been assigned to work in the holding cell area of Trenton Police Headquarters, sprayed Oleoresin Capsicum (commonly referred to a “pepper spray”) on a prisoner who was confined in a holding cell. Villanueva later completed an incident report that contained numerous false statements designed to conceal his unlawful conduct and improper treatment of the prisoner. 

The violation of civil rights counts each carry a maximum penalty of 10 years in prison. The false records counts each carry a maximum penalty of 20 years in prison. The maximum fine for each of the charges is $250,000.

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

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

The government is represented by Assistant U.S. Attorneys Molly Lorber, Joseph Gribko and Ray Mateo of the U.S. Attorney=s Office Criminal Division in Trenton in the criminal case.

CAMDEN, N.J. – A Camden County, New Jersey, man today admitted defrauding the U.S. Department of Defense (DoD) by providing military equipment parts that were not what he had contracted to provide and illegally accessing technical information because he was not a United States citizen, U.S. Attorney Craig Carpenito announced.

Oben Cabalceta, 53, of Atco, New Jersey, pleaded guilty before U.S. District Judge Noel L. Hillman in Camden federal court to an information charging him with one count of wire fraud and one count of conspiracy to violate the Arms Export Control Act.

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

Cabalceta was the owner of two companies: Owen’s Fasteners Inc. (Owen’s) and United Manufacturer LLC (United), two manufacturing companies in West Berlin, New Jersey.

Cabalceta admitted that between August 2004 and March 2016, Owen’s and United obtained contracts with the DoD by falsely claiming that the military parts it contracted to provide would be the exact product provided by authorized manufacturers. The DoD contracts specified that the military parts were critical application items for military equipment, including aircraft. Contrary to the contract, Cabalceta either used his companies to contract with local manufactures to supply non-conforming parts or made the parts himself at a significantly reduced cost. The non-conforming parts were shipped from New Jersey to various DoD locations around the country. DoD paid Owen’s and United $1,890,939 for those parts.

Cabalceta also admitted that he was a native and citizen of the Republic of Costa Rica who overstayed his tourist visa in 2000 and was not lawfully in the United States. To further his fraud on the DoD, in August 2005 and November 2010, Cabalceta caused his brother-in-law, Roger Sobrado, to submit to the DoD a fraudulent application for access to export controlled drawings and technical data on behalf Owen’s. In 2015, Cabalceta caused an accomplice to submit to the DoD a fraudulent application for access to export controlled drawings and technical data on behalf Owen’s.

Cabalceta acknowledged that access to the controlled drawings and technical data was limited to citizens of the United States and those lawfully in the United States. He admitted that on July 28, 2011, and at various times between January 2013 and November 2015, while unlawfully in the United States, he accessed or downloaded drawings that were sensitive in nature that required special access.

The count of wire fraud to which Cabalceta pleaded guilty carries a maximum potential penalty of 20 years in prison and a $250,000 fine. The count of conspiracy to violate the Arms Control Export Act to which he pleaded guilty carries a maximum penalty of five years in prison and a fine of $250,000. Sentencing is scheduled for Aug. 2, 2019.

On Oct. 11, 2018, Sobrado pleaded guilty before Judge Hillman to a three-count information charging him with conspiracy to commit wire fraud, conspiracy to violate the Arms Export Control Act, and income tax evasion. Sobrado’s sentencing is pending.

U.S. Attorney Carpenito credited special agents of the U.S. Department of Defense, Defense Criminal Investigative Service Northeast Field Office, under the direction of Special Agent in Charge Leigh-Alistair Barzey; special agents of the U.S. Attorney’s Office; special agents of the Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Brian Michael; special agents of IRS - Criminal Investigation, under the direction of Special Agent In Charge John R. Tafur; and special agents of the Social Security Administration, Office of Inspector General, under the direction of Special Agent in Charge John F. Grasso for 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.

CAMDEN, N.J. – Three Camden men have been convicted by a federal jury of  conspiring to sell cocaine base (crack cocaine), furanyl fentanyl, and heroin, distributing and possessing with intent to distribute these drugs, being a convicted felon in possession of a handgun, and witness tampering, U.S. Attorney Craig Carpenito announced today. 

John Gunther a/k/a “Critty,” 35, Taleaf Gunther a/k/a “Leafy” and “L,” 33, and William Roland a/k/a “Chill,” 37, were convicted April 18, 2019, after an 11-day trial before U.S. District Judge Renée Marie Bumb in Camden federal court. The jury deliberated for about a day-and-a-half before returning guilty verdicts on 10 counts.

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

Brothers John and Taleaf Gunther worked together to lead a prolific drug trafficking organization that sold crack cocaine, heroin, and the synthetic opioid furanyl fentanyl around the 1700 block of Filmore Street in Camden, which was controlled by the organization. Roland assisted the Gunther brothers as a manager within the organization. Ten members of the drug ring were initially arrested in June 2017 following a long-term investigation by the FBI, which utilized multiple telephone wiretaps, surveillance, confidential informants, cooperating witnesses, more than 20 controlled drug purchases, a GPS vehicle tracker and four court-authorized search warrants, among other investigative techniques. The investigation ultimately led to the seizure of more than 300 grams of crack cocaine, quantities of furanyl fentanyl and heroin, a firearm, and drug paraphernalia. Shortly after the execution of search warrants in the case, investigators learned that Taleaf Gunther also attempted to bribe another member of the conspiracy to lie to police about a handgun recovered from a residence he used. An eleventh member of the organization was charged in 2018.

The defendants face a maximum penalty of life in prison, a fine of up to $10 million, and at least 10 years of supervised release. Each of the defendants have multiple prior felonies in state court and, therefore, face possible mandatory minimum sentences of 15 years in prison.

The eight other defendants – Mark Campbell a/k/a “D” and Diz,” 39, Daron Suiter, 24, Davon Leak, 20, George Williams, 44, Karim Johnson, a/k/a “Chicky,” 40, Latoya Whealton a/k/a “Toya,” 34, Rajai Gaines, a/k/a “Jigga,” and Malcolm McCoy, 28  – previously pleaded guilty. Gaines and Johnson were each sentenced to 10 years in prison, Leak to 74 months in prison and Suiter to five years in prison. Campbell, Whealton, McCoy and Williams are awaiting sentencing.

U.S. Attorney Carpenito credited special agents of the FBI’s South Jersey Violent Offender and Gang Task Force, South Jersey Resident Agency, under the direction of Special Agent in Charge Michael Harpster in Philadelphia; the Camden County Police Department, under the direction of Chief J. Scott Thomson; the Camden County Prosecutor’s Office, under the direction of Prosecutor Mary Eva Colalillo; and the N.J. State Police, under the direction of Col. Patrick J. Callahan, with the investigation leading to the guilty verdicts.

He also thanked the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Gloucester Township Police Department, the Camden County Sheriff’s Department, the Cherry Hill Police Department, and the U.S. Department of Homeland Security Investigations (HSI) for their assistance.

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

TRENTON, N.J. -- A Somerset County, New Jersey, man was sentenced today to 46 months in prison for illegally exporting from the United States a wide array of weapons, including assault rifles, U.S. Attorney Craig Carpenito announced.

Pedro Vergara, 55, of Branchburg, New Jersey, previously pleaded guilty before U.S. District Judge Michael A. Shipp to an information charging him with one count of smuggling firearms from the United States. Judge Shipp imposed the sentence today in Trenton federal court.

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

From May 2017 through November 2017, Vergara purchased a number of firearms, including assault rifles, from various New Jersey-based firearms dealers, including:

• Six Century Arms, Model RAS47, 7.62 x 39 caliber rifles, each with defaced serial numbers;
• Two Romarm / Cugir, Model WASR-10, 7.62 x 39 caliber rifles, each with defaced serial numbers;
• Two Inter Ordnance Inc., Model Sporter, 7.62 x 39 caliber rifles, each with defaced serial numbers;
• One Beretta, Model PX4 Storm, 9mm caliber pistol with serial number PX299818;
• One Henry Repeating Arms, Model H001, .22 caliber rifle;
• One Smith & Wesson, Model 640, .357 caliber revolver;
• 2,000 rounds of 7.62 x 39 caliber Wolf ammunition;
• 100 rounds of .22 caliber Sellier & Bellot ammunition;
• 50 rounds of Winchester .17 HMR (Hornady Magnum Rimfire) caliber ammunition;
• 50 rounds of Blazer .357 caliber ammunition;
• 25 rounds of American Eagle .357 caliber ammunition;
• 550 rounds of American Eagle .22 caliber ammunition; and
• 500 rounds of CCI .22 caliber ammunition.

Vergara planned to smuggle the firearms, as well as thousands of rounds of ammunition, to a location in Paraguay and illicitly resell the weapons on the black market for profit. Vergara took steps to conceal the firearms in shipping boxes, and transported the boxes from New Jersey to a shipping company located in New York. He also concealed ownership interest in the firearms by obliterating or defacing the serial numbers from at least 10 of the weapons.   

In addition to the prison term, Judge Shipp also sentenced Vergara to two years of supervised release and fined him $10,000.

U.S. Attorney Carpenito credited special agents of the ATF, under the direction of Special Agent in Charge Charlie J. Patterson in Newark; special agents of the Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Brian Michael; and the N.J. State Police, under the direction of Col. Patrick J. Callahan, with the investigation leading to today’s sentencing.

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

TRENTON, N.J. – A federal jury today convicted George Gilmore, a partner at an Ocean County law firm, of two counts of failing to pay over to the IRS payroll taxes withheld from the firm's employees and one count of making false statements on a bank loan application submitted to Ocean First Bank N.A., First Assistant U.S. Attorney Rachael A. Honig announced.

Gilmore, 69, of Toms River, New Jersey, was acquitted of two counts of filing false tax returns for calendar years 2013 and 2014; the jury could not reach a unanimous verdict on one count of income tax evasion for calendar years 2013, 2014, and 2015. The verdicts were returned following a trial that began April 1, 2019, before U.S. District Judge Anne E. Thompson in Trenton federal court.

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

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

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

The two counts of failing to collect, account for, and pay over payroll taxes each carry a maximum penalty of five years in prison, and a $250,000 fine, or twice the gross gain or loss from the offense. The count of loan application fraud carries a maximum penalty of 30 years in prison and a $1 million fine. Sentencing is scheduled for July 23, 2019.

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

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

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

NEWARK, N.J. – A New York woman was sentenced to 27 months in prison for running an investment scheme that defrauded victims of hundreds of thousands of dollars, U.S. Attorney Craig Carpenito announced.

Alisa Adler, 58, previously pleaded guilty before U.S. District Judge Claire C. Cecchi to an information charging her with two counts of wire fraud. Judge Cecchi imposed the sentence on April 16, 2019, in Newark federal court.

According to documents filed Information:

From January 2009 through August 2014, Adler took loans and investments from multiple victims and told them that their money would be used for certain specified investments through her company, ASG Real Estate Services Group Inc. To induce potential investors to give her money, Adler provided them with promotional materials and other documents, and told them that their money would be repaid within a certain amount of time. Adler did not use the majority of invested funds for the specific real estate investments she had presented to the victims. Instead, she used it to, among other things, repay prior investors and pay her own personal expenses.

In addition to the prison term, Judge Cecchi sentenced Adler to three years of supervised release and ordered her to pay restitution of $1,254,000.

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

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

Defense counsel: Jacob Laufer Esq., New York

NEWARK, N.J. – A shipping company based in Italy today admitted discharging oily waste and other pollutants into the sea and then lying about it, U.S. Attorney Craig Carpenito and Assistant Attorney General Jeffrey Bossert Clark announced.

The company, d’Amico Shipping Italia S.p.A., pleaded guilty before U.S. District Judge Susan D. Wigenton in Newark federal court to an information charging it with violating the Act to Prevent Pollution from Ships. Under terms of the plea agreement, d’Amico will pay a $4 million penalty and be placed on probation for four years. During probation, the company will be subject to the terms of an environmental compliance program that requires outside audits by an independent company and oversight by a court-appointed monitor

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

The charge to which d’Amico pleaded guilty related to the deliberate concealment of vessel pollution from an oil tanker – the M/T Cielo di Milano – owned by that company, which visited ports in New Jersey multiple times, as well as ports in Maryland and Florida. The company admitted that the ship’s crew intentionally bypassed required pollution prevention equipment by discharging machinery space bilge water and oily waste from the vessel’s engine room through its sewage system into the sea. The company also admitted that crew members falsified the vessel’s Oil Record Book, a required log regularly inspected by the Coast Guard; made false statements to the Coast Guard during its inspection of the M/T Cielo di Milano in January 2015; and destroyed the vessel’s sounding log after the Coast Guard had boarded the vessel.

The company admitted the following in a detailed joint factual statement filed in Court:

• From August 2014 through January 2015, the M/T Cielo di Milano used two different methods to illegally dispose of oily waste, both of which involved discharging it from the vessel’s sewage holding tank into the sea.

• Some of the discharges took place within the exclusive economic zone, that is, within 200 nautical miles of the United States.

• Two different chief engineers were involved in the illegal discharges and the intentional falsification of the Oil Record Book to cover up those discharges.

• One chief engineer falsified the Oil Record Book to state that bilge water had been processed through the vessel’s pollution control equipment when, in fact, it had not.

• The crew routinely hid equipment used to conduct the discharges when the vessel entered port.

• During a Coast Guard inspection of the vessel in Bayonne, New Jersey, in January 2015, the chief engineer and second engineer lied to inspectors and told lower-level crew members to lie as well.

• After the Coast Guard departed the vessel, the chief engineer destroyed a notebook containing tank soundings by burning the pages in the vessel’s boiler flame in order to conceal the notebook from the Coast Guard.

The proposed $4 million penalty includes $1 million in organizational community service payments to restore the coastal environment of New Jersey. The plea agreement directs funds to environmental projects that will be selected by the National Fish and Wildlife Foundation to support the cleanup of marine pollution, preservation of aquatic life, and restoration of the shorelines around Newark Bay.

U.S. Attorney Carpenito and Assistant Attorney General Clark credited special agents of the U.S. Coast Guard Investigative Service, under the direction of Special Agent in Charge Richard D. Cox and Assistant Special Agent in Charge Eric J. O’Hearn, with the investigation leading to the guilty plea. 

The government is represented by Assistant U.S. Attorneys Kathleen P. O’Leary of the Health Care and Government Fraud Unit and Kelly Graves of the Organized Crime Unit in Newark.

NEWARK, N.J. – The business manager of a Morris County, New Jersey, assisted living facility today admitted that she exploited her position to steal approximately $237,000 from an elderly victim under her care, U.S. Attorney Craig Carpenito announced.

Marcella Drakeford, 46, of Jensen Beach, Florida, pleaded guilty before U.S. District Judge Katharine S. Hayden in Newark federal court to Count One of an indictment charging her with mail fraud.

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

Beginning in December 2016, Drakeford allegedly agreed to help manage her victim’s financial affairs and pay for her care. She was granted limited access to the victim’s checking account. Unbeknownst to victim or the victim’s guardian, Drakeford already had fraudulently gained access to the victim’s credit card account and had several cards issued in her name. Drakeford then used the credit cards for personal expenditures, including luxury clothing, jewelry, and automobiles, dental work, rent, and utilities. Drakeford paid off the credit card bills with checks drawn on the victim’s checking account, all without permission.

The charge of mail fraud carries a maximum potential penalty of 20 years in prison and a fine of $250,000, or twice the gross gain or loss caused by the scheme. Sentencing is scheduled for July 22, 2019.

U.S. Attorney Carpenito credited inspectors of the U.S. Postal Inspection Services under the direction of Inspector in Charge James V. Buthorn, for the investigation leading to today’s guilty plea. He also thanked the Morris County Prosecutor’s Office, under the direction of Prosecutor Fredric M. Knapp, and the Morristown Police Department, under the direction of Chief Peter Demnitz, for their assistance in the investigation.

The government is represented by Assistant U.S. Attorney David W. Feder of the U.S. Attorney’s Office’s Cyber Unit.

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

CAMDEN, N.J. – An Atlantic City, New Jersey, man today admitted to staging a fake robbery of a Union County, New Jersey, pawnshop for the purpose of perpetrating an insurance fraud and to distributing illegal drugs, U.S. Attorney Craig Carpenito announced.

Salvatore “Sam” Piccolo, 67, of Atlantic City, a member of the Philadelphia La Cosa Nostra organized crime family, pleaded guilty before U.S. District Judge Robert B. Kugler in Camden federal court to an information charging him with distribution 216 grams of methamphetamine and one count of wire fraud.

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

Piccolo admitted that on April 19, 2014, he and an accomplice entered a pawnshop in Union County, purportedly to sell some silver items. Once inside the shop, the accomplice displayed a hand gun while Piccolo, wearing a nylon mask, chained the front doors closed to prevent anyone from entering. The owner was bound, as a pretense, while Piccolo and his accomplice looted the safe of what the owner told police was approximately $60,000 in cash, several pieces of jewelry, and a hand gun. The owner later submitted to his insurance company a fraudulent loss claim that was paid for approximately $174,000.

Piccolo also admitted making three sales of methamphetamine totaling 216 grams of the drug to an undercover FBI agent. Subsequent laboratory analysis determined the methamphetamine to be 99 percent pure.

The distribution of methamphetamine charge carries a minimum of 10 years in prison and a maximum penalty of life in prison; the wire fraud charge carries a maximum penalty of 10 years in prison. Both counts are also punishable by a fine of $250,000. Sentencing is scheduled for July 18, 2019.

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

The government is represented by Assistant U.S. Attorney Patrick C. Askin of the Criminal Division, Camden Office, and Senior Litigation Counsel V. Grady O’Malley of the U.S. Attorney=s Office Organized Crime/Gangs Unit in Newark.