District of New Jersey

NEWARK, N.J. – A Union County, New Jersey, man was arrested today by federal agents on charges of tax fraud and tax evasion, U.S. Attorney Craig Carpenito announced.

Terrance LeGall, 64, of Linden, New Jersey, is charged by indictment with 11 counts of aiding and abetting the preparation of a false tax return and eight counts of tax evasion for failure to file personal and corporate income tax returns. LeGall is scheduled to make his initial appearance this afternoon before U.S. Magistrate Judge Cathy L. Waldor in Newark federal court.

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

Since 2009, LeGall was the sole operator of LeGall Group Inc. (LGI), a tax return preparation business in Union County, New Jersey. From 2013 to 2017, LeGall prepared false tax returns for his clients. He allegedly included fake charitable contributions, unreimbursed business expenses and business losses that he knew his clients had not actually incurred. These returns resulted in a reduction in his clients’ tax liability and fraudulent refunds from the IRS. LeGall acted as a “ghost preparer,” in that although he prepared income tax returns for his clients, he did not identify himself anywhere on the returns as a preparer, and electronically filed the returns in a manner that made it look like the returns had been filed by the taxpayers. LeGall also evaded the assessment of federal taxes in excess of $600,000 by willfully failing to file personal and corporate tax returns for the tax years 2012 through 2015. LeGall attempted to hide his source of income by depositing the proceeds of his tax preparation business into bank accounts belonging to his family members.

Each count of aiding and abetting in the preparation of false tax returns carries a maximum prison sentence of three years and a $250,000 fine. Each count of failure to file personal and corporate income tax returns carries a maximum prison sentence of five years and a $250,000 fine.

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

The government is represented by Assistant U.S. Attorney Sammi Malek of the Economic Crimes Unit in Newark.

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

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

NEWARK, N.J. – A Newark man was sentenced today to 180 months in prison for his role in a conspiracy to distribute over a kilogram of heroin, 150 grams of fentanyl, and 240 grams of crack cocaine as well as possession of a firearm by a previously convicted felon, U.S. Attorney Craig Carpenito announced.

Ahmad Johnson, a/k/a “OC,” 38, previously pleaded guilty before U.S. District Judge Kevin McNulty to a superseding information charging him with one count of conspiracy to possess with intent to distribute more than one kilogram of heroin, 28 grams of cocaine base, and 40 grams of fentanyl, and one count of being a felon in possession of a firearm.

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

From September 2016 through June 2017, Johnson and other members of the Johnson Drug Trafficking Organization engaged in a heroin distribution conspiracy that operated in and around Newark.

Through the authorized interception of telephone calls and text messages, controlled purchases of heroin, the use of confidential sources of information, and other investigative means, law enforcement officers learned that Johnson was a leader of the conspiracy and was responsible for obtaining wholesale amounts of narcotics, including heroin and cocaine, and processing and packaging the narcotics for sale in the Newark area. At times, after the narcotics were processed and packaged for sale, Johnson found users to “test” the narcotics to evaluate the quality, potency, and danger for broader distribution. After the narcotics were tested, members of the Johnson DTO sold the narcotics to other distributors and to users.

In addition to the prison term, Judge McNulty sentenced Johnson to five years of supervised release.

U.S. Attorney Carpenito credited special agents and officers with Drug Enforcement Administration’ High-Intensity Drug Trafficking Area (HIDTA) Group 1, under the direction of Special Agent in Charge Susan A. Gibson, with the investigation leading to today’s sentencing.

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

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.

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

NEWARK, N.J. – An Essex County, New Jersey, man today admitted his role in a conspiracy to submit false and fraudulent insurance claims for out-of-network chiropractic services that were never performed, U.S. Attorney Craig Carpenito announced.

Keasam Johnson, 35, of East Orange, New Jersey, pleaded guilty before U.S. District Judge Claire C. Cecchi in Newark federal court to an information charging him with one count of conspiracy to commit healthcare fraud.

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

Johnson worked as a supervisor in the New Jersey office of a large telecommunications company until August 2017. A co-defendant Tiffany Marsh, 41, of West Orange, was a medical biller and the owner and operator of TJB Medical Billing Consultants LLC, through which she provided medical billing to health care providers, including two New Jersey chiropractors.  Marsh and Johonson were charged June 26, 2018 with one count each of conspiracy to commit healthcare fraud.

Johnson and other conspirators submitted false and fraudulent insurance claims for out-of-network chiropractic services that were never performed. Marsh allegedly used her access to the billing software at the chiropractor offices to generate the fraudulent claims. Johnson recruited telecommunications company employees to participate in the scheme. The fraudulent claims resulted in the payment of reimbursements to conspirators in exchange for a portion of the proceeds. 

The charge of conspiracy to commit health care fraud carries a maximum sentence of 10 years in prison and a $250,000 fine. Sentencing is scheduled for July 24, 2019.

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

The government is represented by Assistant U.S. Attorney Lauren E. Repole of the U.S. Attorney’s Office’s OCDETF/Narcotics Unit.

The pending charge and allegations against Marsh are merely accusations, and she is presumed innocent unless and until proven guilty.

CAMDEN, N.J. – A Cumberland County, New Jersey, man was convicted today for his role in three armed bank robberies and related charges, U.S. Attorney Craig Carpenito announced.

Stephan Byrd, 44, of Vineland, New Jersey, was convicted following a two-week trial before U.S. District Judge Robert B. Kugler in Camden federal court on three counts of bank robbery; two counts of using and brandishing a firearm in furtherance of bank robbery; one count of using and discharging a firearm in furtherance of bank robbery; and one count of being a felon in possession of a firearm. The jury deliberated for approximately six hours before returning the verdicts.

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

On June 7, 2014, Byrd entered the Ocean City Home Bank in Mays Landing, New Jersey, armed with a gun. He approached the bank teller counter, pointed his gun at bank employees, warned them not to push the panic alarm button, and ultimately stole $5,576. Byrd fled the scene through the nearby woods.

On July 19, 2014, Byrd entered the Newfield National Bank in Vineland, New Jersey, with Charles Sanders, who pleaded guilty previously to his role in the crime. Both Byrd and Sanders were armed with guns and covered up from head to toe. Sanders remained in the lobby of the bank while Byrd vaulted the bank counters to gain access to the bank tellers and cash drawers. Byrd pointed his gun at various bank employees and stole $10,297 from the bank drawers, after which he and Sanders fled through the nearby woods. The money contained dye packs, which exploded during Byrd’s and Sanders’ escape.

On July 21, 2014, Byrd entered the Newfield National Bank in Malaga, New Jersey, armed with a gun and covered up from head to toe. Byrd vaulted the bank counters to gain access to the teller drawers, pointed his gun at the bank tellers, stole $6,139, and ran into the nearby woods. After Byrd ran into the woods, a bank customer attempted to follow him in order to get identifying information. When Byrd noticed that he was being followed, he pointed his gun at the customer and fired a shot in the customer’s direction. Byrd then fled the scene.

Based on today’s convictions, Byrd faces a combined mandatory minimum sentence of 24 years in prison and a potential maximum sentence of life in prison. Each of the seven counts is also punishable by a fine of up to $250,000. Sentencing is scheduled for July 18, 2019.

U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark; officers with the Vineland Police Department, under the direction of Chief Rudy Beu; and officers with the Hamilton Township Police Department, under the direction of Chief Stacy V. Tappeiner, with the investigation leading to today’s guilty verdict. U.S. Attorney Carpenito also thanked the officers of the North Brunswick Police Department, the FBI’s Philadelphia Division, and forensic scientists with N.J. State Police Office of Forensic Sciences and Ballistics Laboratory for their assistance in the case.

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

Defense counsel: Troy Archie Esq., Camden

NEWARK, N.J. – An Englewood, New Jersey-based real estate developer today admitted his role in a conspiracy to illegally obtain nominee loans from Mariner’s Bank, U.S. Attorney Craig Carpenito announced.

James Demetrakis, 79, pleaded guilty before U.S. District Judge Jose L. Linares in Newark federal court to an information charging him with one count of conspiracy to make false entries to deceive a financial institution and the FDIC.

According to documents filed in this case, a related case against Fred Daibes and Michael McManus, and statements made in court:

Demetrakis’ longtime business partner, Daibes, was the founder and, until April 2011, chairman of the board of directors, at Mariner’s Bank. The bank was subject to federal banking regulations that placed limits on the amount of money that the bank could lend to a single borrower. Between January 2008 and December 2013, Demetrakis conspired with Daibes and others to orchestrate a nominee loan scheme designed to circumvent the lending limits by ensuring that millions of dollars in loans flowed from Mariner’s Bank to the nominees to Daibes, while concealing from both Mariner’s Bank and the FDIC Daibes’ beneficial interests in those loans.

Demetrakis served as the nominee for a $1.8 million line of credit and recruited two of his relatives to serve as nominees for a $2.625 million loan. After receiving the proceeds of the loans, Demetrakis and the other nominees distributed these monies to Daibes. Daibes and the nominees, including Demetrakis, failed to disclose to Mariner’s Bank that Daibes arranged to make both the interest and principal payments on the loans.

The nominee loans became delinquent on certain occasions when Daibes failed to give the nominees, including Demetrakis, the funds to make the monthly payments. After the FDIC began an investigation into one of the loans, Daibes, McManus, and others created and submitted to the FDIC a false, backdated sales contract to make it appear as though Demetrakis had obtained the $1.8 million loan from Mariner’s Bank in order to pay Daibes for his interest in a real estate venture.

Daibes and McManus were indicted Oct. 30, 2018, on conspiracy and bank fraud charges, which remain pending. The charges and allegations against them are merely accusations, and they are presumed innocent unless and until proven guilty.

The conspiracy charge to which Demetrakis pleaded guilty carries a statutory maximum of five years in prison and a maximum fine of $250,000. Sentencing is scheduled for July 23, 2019.

U.S. Attorney Carpenito credited special agents from the U.S. Attorney’s Office, under the direction of Supervisory Special Agent Thomas Mahoney; special agents of the FDIC, Office of Inspector General, under the direction of Special Agent in Charge Patricia Tarasca in New York; 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 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: Edward Plaza Esq., Little Silver, New Jersey

CAMDEN, N.J. – An Atlantic County, New Jersey, man today admitted defrauding New Jersey state health benefits programs out of millions of dollars by submitting fraudulent claims for medically unnecessary prescriptions, U.S. Attorney Craig Carpenito announced.

Edward Sutor Jr., 36, of Linwood, New Jersey, a Ventnor City firefighter, pleaded guilty before U.S. District Judge Robert B. Kugler in Camden federal court to an information charging him with conspiracy to commit health care fraud.

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

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

Sutor was one of the owners of a company formed to market prescription compounded medications, referred to as “Company 1.” From May 2015 through February 2016, Sutor and others associated with the company persuaded individuals in New Jersey to obtain very expensive and medically unnecessary compounded medications.

The conspirators learned that certain compounded medication prescriptions – including pain, scar, and antifungal creams, as well as vitamin combinations – were reimbursed for thousands of dollars for a one-month supply. The conspirators also learned that the N.J. State Health Benefits Program, which covers qualified state and local government employees, retirees, and eligible dependents, and the School Employees’ Health Benefits Program, which covers qualified local education employees, retirees, and eligible dependents, would cover compounded medication prescriptions.

Sutor and his conspirators entered into an agreement under which Company 1 would receive a percentage of the amounts paid to compounding pharmacies for prescriptions secured by Sutor and his conspirators. Sutor and his conspirators then recruited public employees, offered them hundreds of dollars per month, and persuaded them to agree to obtain prescription compounded medications without any examination by a medical professional to indicate that the medications were medically necessary. Sutor would obtain insurance and personal information from the public employees and give that information to conspirators. Company 1 would receive a percentage of the amounts paid on these fraudulent prescriptions, which Sutor and others would share.

According to the information, Sutor and his conspirators caused New Jersey to pay over $2 million in fraudulent claims for compounded medications for public employees.

Sutor received $335,552 in gross proceeds for his role in the scheme. As part of his plea agreement, Sutor must forfeit these criminal proceeds and pay restitution of at least $2,682,708. He faces a maximum penalty of 10 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. Sentencing is scheduled for July 17, 2019.

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

The government is represented by Assistant U.S. Attorneys R. David Walk, Jr. and Alyson M. Oswald of the U.S. Attorney’s Office in Camden.

Defense counsel: John Zarych Esq., Northfield, New Jersey

NEWARK, N.J. – An Essex County, New Jersey, man today admitted his role in exchanging $1.9 million in Supplemental Nutrition Assistance Program (SNAP) benefits for cash, U.S. Attorney Craig Carpenito announced.

Jose Perdomo, 34, of Newark, pleaded guilty before U.S. District Judge Esther Salas in Newark federal court to an information charging him with one count of SNAP fraud and one count of engaging in monetary transactions in property derived from specified unlawful activity. 

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

From January 2017 to September 2018, Perdomo was an employee of M&R Supermarket, a small grocery store in Newark. His father, Juan Perdomo, ran the everyday operation of the business since M&R’s opening in 2015.

M&R was authorized to accept benefits provided by SNAP, formerly known as the Food Stamp Program. The program is administered by the U.S. Department of Agriculture. Retail food stores approved for participation in SNAP may sell food in exchange for SNAP benefits but may not exchange SNAP benefits for cash.

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

Law enforcement agents verified the fraudulent exchange of SNAP benefits for cash through the use of an undercover law enforcement agent who engaged in 11 “purchases” at M&R Supermarket, where Jose Perdomo and Juan Perdomo exchanged money for SNAP benefits.

The bank account of M&R Supermarket, where the store receives SNAP payments, showed numerous cash withdrawals in excess of $10,000 by Juan Perdomo and Maria Rodriguez, as well as several cashed checks in excess of $10,000 by Jose Perdomo.

In September 2018, Jose Perdomo and Juan Perdomo and were charged by complaint with SNAP benefit fraud and conspiracy to commit wire fraud. The Perdomos and Rodriguez – Juan’s wife and Jose’s mother – were also charged with money laundering conspiracy. The charges against Juan Perdomo and Rodriguez remain pending, and they are merely accusations; the defendants are presumed innocent unless and until proven guilty.

The count of SNAP benefit fraud carries a maximum penalty of 20 years in prison and a fine of $250,000, or twice the gross pecuniary gain/loss. The count of engaging in monetary transactions in property derived from specified unlawful activity carries a maximum penalty of 10 years in prison and a fine of $250,000 or twice the value of the property involved in the transaction. Sentencing is scheduled for Aug. 5, 2019.

U.S. Attorney Carpenito credited special agents of the U.S. Department of Agriculture – Office of Inspector General, under the direction of Special Agent in Charge Bethanne M. Dinkins, U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI), under the direction of Special Agent in Charge Brian A. Michael, and IRS - Criminal Investigation, under the direction of Special Agent in Charge John R. Tafur, with the investigation leading to today’s guilty plea.

The government is represented by Special Assistant U.S. Attorney Perry Farhat of the U.S. Attorney’s Office Criminal Division in Newark.

TRENTON, N.J. – A Passaic County, New Jersey, couple admitted today that they took part in a food stamps fraud scheme, U.S. Attorney Craig Carpenito announced.

Ibrahim Zughbi, 65, and his wife, Miriam Zughbi, 61, of Wayne, New Jersey, pleaded guilty before U.S. District Judge Peter G. Sheridan in Trenton federal court. Ibrahim Zughbi pleaded guilty to an information charging him with Supplemental Nutrition Assistance Program (SNAP) – formerly known as the Food Stamp Program – benefit fraud and money laundering. Miriam Zughbi pleaded guilty to an information charging her with conspiracy to defraud the United States through SNAP benefit fraud.

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

From January 2014 to January 2018, the defendants owned and worked at Jamaica Meat Market, a medium-size grocery store in Paterson, New Jersey. Ibrahim Zughbi had been previously barred from participating in the SNAP program for allowing benefits to be exchanged for cash in a prior store that he owned. Ibrahim Zughbi listed a nominee as the store’s owner in order for Jamaica Meat Market to participate in the program.

Jamaica Meat Market was authorized to accept benefits provided by SNAP, which is administered by the U.S. Department of Agriculture. Retail food stores approved for participation in SNAP may sell food in exchange for SNAP benefits. They may not exchange SNAP benefits for cash. The Zughbis exchanged more than $4.5 million in SNAP benefits for cash between 2014 and 2018.

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

To conceal the proceeds of the SNAP benefit fraud, Ibrahim Zughbi wrote inflated checks from the Jamaica Meat Market account containing the SNAP fraud proceeds to a supplier, and then received funds back in cash from the supplier. Zughbi also issued checks to family members with no apparent connection to Jamaica Meat Market.

Law enforcement agents verified the fraudulent exchange of SNAP benefits for cash through the use of a confidential source who, at the direction of law enforcement, engaged in 16 “purchases” at Jamaica Meat Market where one or both defendants exchanged money for SNAP benefits.

The SNAP fraud and money laundering charges each carry a maximum penalty of 20 years in prison and a fine of $250,000, or twice the gross gain or loss from the offense. The conspiracy charge carries a maximum penalty of five years in prison and a fine of $250,000, or twice the gross gain or loss from the offense. Sentencing is scheduled for July 17, 2019.

U.S. Attorney Carpenito credited special agents of the U.S. Department of Agriculture –Office of Inspector General, under the direction of Special Agent in Charge Bethanne M. Dinkins, and U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI), under the direction of Special Agent in Charge Brian Michael, with the investigation leading to today’s guilty pleas. He also thanked the Passaic County Prosecutor’s Office, the Wayne Township Police Department and the Paterson Police Department for their roles in the investigation.

The government is represented by Assistant U.S. Attorney Sean M. Sherman of the U.S. Attorney’s Office Public Protection Unit in Newark.

Defense counsel: Ibrahim Zughbi: Alan Zegas Esq., Summit, New Jersey
Miriam Zughbi: Sean McGovern Esq., Newark

TRENTON, N.J. – A Monmouth County, New Jersey, man was sentenced today to 60 months in prison for receiving child pornography, U.S. Attorney Craig Carpenito announced.

Jason DiSanto, 39, of Ocean Township, New Jersey, previously pleaded guilty before U.S. District Judge Brian R. Martinotti to an indictment charging him with receiving child pornography. Judge Martinotti imposed the sentence today in Trenton federal court.

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

A law enforcement investigation into DiSanto’s online activities began in September 2016 when a video of child sexual abuse was shared from a web address registered to his residence. On Nov. 5, 2017, DiSanto was met by law enforcement upon re-entering the United States from an international trip. Law enforcement examined various electronic devices that DiSanto was carrying and located a video of child sexual abuse, as well as a link to additional items of child pornography, on his laptop computer. DiSanto previously acknowledged downloading the video, which he knew constituted child pornography, while in New Jersey.

In addition to the prison term, Judge Martinotti also sentenced DiSanto to five years of supervised release. Additionally, DiSanto will be required to register as a sex offender.

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

The government is represented by Special Assistant United States Attorney Shawn Barnes of the U.S. Attorney’s OCDTEF/Narcotics Unit in Newark.

Defense counsel: David T. Schlendorf Esq., Toms River, New Jersey

NEWARK, N.J. – A former Warren County, New Jersey, man has been convicted of receiving and possessing images of child sexual abuse, U.S. Attorney Craig Carpenito announced today.

Derrick Baer, 36, formerly of Pohatcong, New Jersey, was convicted April 9, 2019, of one count of receiving child pornography and one count of possessing child pornography following a six-day trial before U.S. District Judge Claire C. Cecchi in Newark federal court.

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

In May 2010, in connection with an investigation into a suspicious death at Baer’s residence, law enforcement obtained Baer’s consent to seize computer equipment from the residence. That equipment contained at least 348 images and 33 video files of child sexual abuse.

The receipt of child pornography count is punishable by a maximum potential penalty of 20 years in prison, a minimum penalty of five years in prison, and a fine of $250,000. The possession count is punishable by a maximum potential sentence of 10 years in prison. Sentencing is scheduled for July 23, 2019.

U.S. Attorney Carpenito credited special agents of the FBI’s Child Exploitation Task Force, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark; the Pohatcong Township Police Department, under the direction of Chief Scott Robb; the N.J. Regional Computer Forensics Lab; and the Warren County Prosecutor’s Office, under the direction of Prosecutor Richard T. Burke, with the investigation leading to the conviction.

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

Defense counsel: Michael N. Pedicini Esq., Chatham, New Jersey

NEWARK, N.J. – A California man was arrested and charged today in connection with his role in driving into New Jersey with a tractor trailer containing suspected fentanyl and cocaine, U.S. Attorney Craig Carpenito; Ray Donovan, Special Agent in Charge of the U.S. Drug Enforcement Administration; New York City Police Commissioner James P. O’Neill; Keith M. Corlett, Acting Superintendent of the New York State Police; and Angel M. Melendez, Special Agent in Charge, Homeland Security Investigations New York, announced.

Jose Santos Garcia Guzman, 43, is charged by complaint with one count of conspiracy to possess with intent to distribute approximately 53 kilograms of suspected fentanyl and cocaine. He is scheduled to appear 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:

Law enforcement officers arrested Guzman today in Middlesex County, New Jersey. During an investigation into a drug trafficking organization, law enforcement officers learned that the organization was shipping narcotics from California via tractor trailer. Officers conducted surveillance of a tractor trailer driven by Guzman. While he was in Keasbey, New Jersey, the truck he was driving was stopped by law enforcement officers.

Guzman provided both oral and written consent to search the tractor trailer, in which law enforcement officers found the suspected fentanyl and cocaine. Law enforcement subsequently field tested the substances; approximately 46 kilograms tested positive for the presence of cocaine, and approximately seven kilograms tested positive for the presence of fentanyl.

The count of conspiracy to possess with intent to distribute fentanyl and cocaine carry a mandatory minimum penalty of 10 years in prison, a maximum of life in prison, and a $10 million fine.

U.S. Attorney Carpenito credited the Drug Enforcement Administration’s New York Division, under the direction of Special Agent in Charge Donovan, with the investigation. Today’s arrest was the result of an investigation by the New York Strike Force, a crime-fighting unit comprising federal, state and local law enforcement agencies supported by the Organized Crime Drug Enforcement Task Force (OCDETF) and the New York/New Jersey High Intensity Drug Trafficking Area (HIDTA). The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.

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

U.S. Attorney Carpenito also thanked New York City’s Special Narcotics Prosecutor Bridget G. Brennan for assisting in the investigation.

The government is represented by Assistant U.S. Attorney Meredith Williams, Chief of the U.S. Attorney’s Office OCDETF/Narcotics Unit.

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

Hundreds of Thousands of Elderly and/or Disabled Patients Nationwide and Abroad Lured into Criminal Scheme to Bilk Medicare

NEWARK, N.J. – One of the largest health care fraud schemes investigated by the FBI and the U.S. Department of Health and Human Services Office of the Inspector General (HHS-OIG) and prosecuted by the Department of Justice resulted in charges against 24 defendants – seven of whom were charged in the District of New Jersey – including the CEOs, COOs and others associated with five telemedicine companies, the owners of dozens of durable medical equipment (DME) companies and three licensed medical professionals, for their alleged participation in health care fraud schemes involving more than $1.2 billion in loss, as well as the execution of over 80 search warrants in 17 federal districts. In addition, the Center for Medicare Services, Center for Program Integrity (CMS/CPI) announced today that it took adverse administrative action against 130 DME companies that had submitted over $1.7 billion in claims and were paid over $900 million.

U.S. Attorney Craig Carpenito of the District of New Jersey, Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Sherri A. Lydon of the District of South Carolina, U.S. Attorney Maria Chapa Lopez of the Middle District of Florida, Assistant Director Robert Johnson of the FBI’s Criminal Investigative Division, Deputy Inspector General for Investigations Gary Cantrell of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG), Chief Don Fort of the IRS Criminal Investigation (CI) and Deputy Administrator and Director of CPI Alec Alexander of the CMS/CPI made the announcement.

Today’s enforcement actions were led and coordinated by the Health Care Fraud Unit of the Criminal Division’s Fraud Section in conjunction with its Medicare Fraud Strike Force (MFSF), as well as the U.S. Attorney’s Offices for the Districts of New Jersey, South Carolina and the Middle District of Florida. The MFSF is a partnership among the Criminal Division, U.S. Attorney’s Offices, the FBI and HHS-OIG. In addition, IRS - Criminal Investigation and other federal law enforcement agencies participated in the operation.

The charges announced today target an alleged scheme involving the payment of illegal kickbacks and bribes by DME companies in exchange for the referral of Medicare beneficiaries by medical professionals working with fraudulent telemedicine companies for back, shoulder, wrist and knee braces that are medically unnecessary. Certain of the defendants allegedly controlled an international telemarketing network that lured over hundreds of thousands of elderly and/or disabled patients into a criminal scheme that crossed borders, involving call centers in the Philippines and throughout Latin America. The defendants allegedly paid doctors to prescribe DME either without any patient interaction or with only a brief telephonic conversation with patients they had never met or seen. The proceeds of the fraudulent scheme were allegedly laundered through international shell corporations and used to purchase exotic automobiles, yachts and luxury real estate in the United States and abroad.

According to allegations in court documents, some of the defendants obtained patients for the scheme by using an international call center that advertised to Medicare beneficiaries and “up-sold” the beneficiaries to get them to accept numerous “free or low-cost” DME braces, regardless of medical necessity. The international call center allegedly paid illegal kickbacks and bribes to telemedicine companies to obtain DME orders for these Medicare beneficiaries. The telemedicine companies then allegedly paid physicians to write medically unnecessary DME orders. Finally, the international call center sold the DME orders that it obtained from the telemedicine companies to DME companies, which fraudulently billed Medicare. Collectively, the CEOs, COOs, executives, business owners and medical professionals involved in the conspiracy are accused of causing over $1 billion in loss.

“The indictments we are unsealing today charge the defendants with running a complex, multilayered scheme to defraud our Medicare system and avoid detection by government regulators,” said U.S. Attorney Craig Carpenito. “The defendants took advantage of unwitting patients who were simply trying to get relief from their health concerns. Instead, the defendants preyed upon their weakened state and pushed millions of dollars’ worth of unnecessary medical devices, which Medicare paid for, and then set up an elaborate system for laundering their ill-gotten proceeds. We are proud to join our law enforcement partners in New Jersey and around the country to put a stop to this unscrupulous criminal activity.”

“These defendants — who range from corporate executives to medical professionals — allegedly participated in an expansive and sophisticated fraud to exploit telemedicine technology meant for patients otherwise unable to access health care,” said Assistant Attorney General Benczkowski. “This Department of Justice will not tolerate medical professionals and executives who look to line their pockets by cheating our health care programs. I commend the Criminal Division prosecutors and our partners from U.S. Attorney’s Offices and law enforcement agencies across the country for their unrelenting efforts to stop this alleged fraud before more money was stolen from American taxpayers.”

“Today, one of the largest health care fraud schemes in U.S. history came to an end thanks to close collaboration and coordination between the FBI and partners including HHS-OIG and IRS-CI,” said FBI Assistant Director Robert Johnson. “Health care fraud causes billions of dollars in losses, it deprives real patients of the critical health care services they need, and it can endanger the lives of real patients so individuals like those arrested today can profit from their criminal activity. Through today’s coordinated national effort, we put an end to this egregious and costly health care fraud scheme, and the public can rest assured the FBI will continue to make health care fraud investigations a top priority.”

“Our law enforcement officers are focused on preventing and uprooting health care fraud schemes like those alleged today,” said HHS-OIG Deputy Inspector General for Investigations Gary Cantrell. “These schemes divert money from taxpayer-funded federal health care programs into the hands of criminals. Working closely with our law enforcement partners, our agency will continue to investigate and disrupt attempts to undermine Medicare and target beneficiaries.”

“The breadth of this nationwide conspiracy should be frightening to all who rely on some form of healthcare,” said IRS-CI Chief Don Fort. “The conspiracy described in this indictment was not perpetrated by one individual. Rather, it details broad corruption, massive amounts of greed, and systemic flaws in our healthcare system that were exploited by the defendants. We all suffer when schemes like this go undiscovered and I’m proud of the work our agents did in working with our partners to uncover this complex scheme.”

“The Centers for Medicare & Medicaid Services (CMS) Center for Program Integrity (CPI) is proud to work very closely everyday with our law enforcement partners to stop exploitation of vulnerable patients and misuse of taxpayer dollars,” said Deputy Administrator and CPI Director Alec Alexander. “In this case CMS has taken swift administrative action and has suspended payments to 130 distinct providers thereby likely preventing billions of additional dollars in losses. CMS remains committed to protecting the millions of beneficiaries we are honored to serve and to preventing fraud of all sorts in the Medicare and Medicaid programs.”

The Fraud Section leads the Medicare Fraud Strike Force. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 14 strike forces operating in 23 districts, has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than $14 billion.

In the District of New Jersey, Strike Force Attorneys brought charges against Creaghan Harry, 51, of Highland Beach, Florida; Lester Stockett, 51, of Deefield Beach, Florida; and Elliot Loewenstern, 56, of Boca Raton, Florida; the owner, CEO and VP of marketing, respectively, of purported call centers and telemedicine companies, for their alleged participation in a $454 million illegal health care kickback and international money laundering scheme related to the solicitation of illegal kickbacks and bribes in exchange for the referral of DME orders to DME providers. In addition, Joseph DeCoroso, M.D., 62, of Toms River, New Jersey, was charged in a $13 million conspiracy to commit health care fraud and separate charges of health care fraud for writing medically unnecessary orders for DME, in many instances without ever speaking to the patients, while working for two telemedicine companies. The cases are being prosecuted by Fraud Section Acting Assistant Chief Jacob Foster and Trial Attorney Darren Halverson.

In addition to the Strike Force Prosecutions, the U.S. Attorney’s Office for the District of New Jersey brought charges against Neal Williamsky 59, of Marlboro, New Jersey, and Nadia Levit, 39, of Englishtown, New Jersey, owners of approximately 25 DME companies, for their alleged participation in a $150 million scheme related to the payment of kickbacks and bribes in exchange for medically unnecessary DME orders. Albert Davydov, 26, of Rego Park, New York, was also charged for his alleged participation in a $35 million scheme related to the payment of kickbacks and bribes in exchange for medically unnecessary DME orders. The cases are being prosecuted by Erica Liu, Chief of the Opioids Unit, and Assistant U.S. Attorneys Brian Urbano and Stephen Ferketic of the District of New Jersey.

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

Any doctors or medical professionals who have been involved with alleged fraudulent telemedicine and DME marketing schemes – including Video Doctor USA, AffordADoc, Web Doctors Plus, Integrated Support Plus and First Care MD – should call to report this conduct to the FBI hotline at 1-800-CALL-FBI.

CAMDEN, N.J. – A Camden County, New Jersey, man and a Philadelphia man today admitted their respective roles in conspiring to distribute oxycodone, U.S. Attorney Craig Carpenito announced.

Daniel Watson, 40, of Bellmawr, New Jersey, and Prussia Hing, 36, of Philadelphia, pleaded guilty before U.S. District Court Judge Jerome B. Simandle in Camden federal court to separate informations charging them each with one count of conspiracy to distribute and possess with intent to distribute oxycodone. Watson and Hing were previously charged in connection with one of the largest national healthcare fraud and opioid enforcement actions ever taken by the U.S. Department of Justice.

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

From December 2017 through June 26, 2018, Watson and Hing conspired with each other and others to distribute unadulterated oxycodone and pressed pills containing oxycodone and hydrocodone, codeine, and methylphenidate. Hing was a source of supply; Watson made eight sales to an undercover officer and a confidential informant, totaling 1,080 oxycodone pills. The final three sales occurred in the vicinity of a Philadelphia hospital, where a conspirator worked as an anesthesiology technologist.

The drug trafficking conspiracy to which Watson and Hing pleaded guilty carries a maximum potential penalty of 20 years in prison and a fine of up to $1 million. Sentencing for both defendants is scheduled for July 17, 2019.

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

Defense counsel:

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

Hing: Gregory Pagano Esq., Philadelphia

NEWARK, N.J. – An Iselin, New Jersey, man today admitted that he attempted to fraudulently obtain United States citizenship, U.S. Attorney Craig Carpenito announced.

Pal Singh, a/k/a “Surinder Singh,” a/k/a “Harpal Singh,” 67, an Indian national, pleaded guilty before U.S. District Court Judge Esther Salas to an information charging him with one count of attempted naturalization fraud.

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

In March 1992, Singh applied for admission into the United States as a tourist at Los Angeles International Airport by presenting an Indian passport that purported to contain an entry visa to the United States. Singh was refused admission because the entry visa was deemed fraudulent and he was detained pending exclusion proceedings. Singh thereafter applied for asylum in the United States in his true name, and he was released on bond while his asylum claim was evaluated. In June 1993, an immigration judge in New York denied Singh’s asylum application and Singh was ordered to surrender for deportation. Singh failed to appear for his deportation as ordered.

In August 1995, Singh fraudulently applied for asylum in the United States under the identity of “Harpal Singh,” and claimed that he had entered the United States by crossing the United States-Mexico border in December 1994. Singh did not disclose that he had previously been denied asylum under his true identity. In March 1996, an immigration judge denied Singh’s second asylum application and he was again ordered to surrender for deportation. Singh again failed to appear for his deportation.

In May 1996, Singh fraudulently applied for asylum in the United States under the identity of “Surinder Singh,” claiming that he had entered the United States by crossing the United States-Mexico border in November 1995. Singh did not disclose that he had previously been denied asylum under his true identity and under the identity of Harpal Singh. This application further claimed that Surinder Singh had been beaten and tortured in India in 1994 despite the fact that Singh had been living in the United States at the time under his true identity.  In June 1996, the Immigration and Naturalization Service granted Singh’s third asylum application in the name of “Surinder Singh” based on fraudulent information provided by Singh.

In December 2015, Singh filed an Application for Naturalization, Form 400-N, with the U.S. Department of Homeland Security under the identity of Surinder Singh. He falsely answered questions relating to his identity, his prior immigration applications, and his immigration status, among others. In May 2018, Singh appeared in the identity of Surinder Singh before an officer of the Department of Homeland Security in Newark for an interview, which was conducted under oath and video-recorded. Singh was also assisted by counsel and by a Punjabi interpreter. Singh falsely answered additional questions relating to his identity, his prior immigration applications, and his immigration status, among others.

A qualified fingerprint examiner from the U.S. Department of Homeland Security’s Biometric Support Center has compared fingerprints taken of Singh when he initially attempted to enter the United States in March 1992 to fingerprints taken in the names of Harpal Singh and Surinder Singh in connection with the above-described immigration proceedings.  The fingerprint examiner concluded that the same individual made all of the fingerprints.

The attempted naturalization fraud charge carries a maximum potential sentence of 10 years in prison. Sentencing is scheduled for Aug. 5, 2019.

U.S. Attorney Carpenito credited special agents of the Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Brian Michael, 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.

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

Moussa Dagno, 24, of Harrison, New Jersey, pleaded guilty before U.S. District Judge Katharine S. Hayden in Newark federal court to an information charging him with one count each of bribery of U.S. Postal Service (USPS) mail carriers and employees, bank fraud and aggravated identity theft. Dagno, who was arrested in February of 2018, remains detained pending his sentencing.

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

Dagno recruited several USPS mail carriers and employees to steal credit cards from the mail in exchange for bribes of $100 per stolen card. Dagno activated the cards under false pretenses, and he and others would use the cards to purchase high-end electronics and clothing at various retail stores throughout New Jersey. At the time of his arrest, law enforcement seized six laptops and a smartphone from Dagno’s residence, all of which had been purchased with credit cards stolen by USPS workers involved in the scheme.

Several of the USPS mail carriers and employees who accepted bribes from Dagno and others have already pleaded guilty to bribery charges and are awaiting sentencing. These individuals include: former mail carriers Zenobia Gilmer, Ayesha Trotz and Kyanne Costley, who had delivery routes in Mt. Arlington, New Jersey, East Orange, New Jersey, and Elizabeth, New Jersey, as well as Jennel Williams, who formerly worked as a clerk in the Main Post Office in Newark. All four admitted to stealing credit cards from the mail and delivering those stolen cards to Dagno or another individual working with Dagno. 

The bribery charge to which Dagno pleaded guilty carries a maximum potential penalty of 15 years in prison; the bank fraud charge to which Dagno pleaded guilty carries a maximum penalty of 30 years in prison; and the aggravated identity theft charge to which Dagno plead guilty carries a mandatory sentence of two years in prison, which will be served consecutively to the sentence Dagno receives on the other charges. The bank fraud charges carries a maximum potential fine of $1 million, while the maximum potential fine for both the bribery and aggravated identity theft is $250,000. Sentencing is currently scheduled for July 17, 2019.

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

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.

CAMDEN, N.J. – A Paterson, New Jersey, woman today admitted calling in hoax bomb threats to the federal courthouse in Camden and the Hughes Justice Complex in Trenton, New Jersey, U.S. Attorney Craig Carpenito announced.

Amdije Toska, 40, pleaded guilty before Senior U.S. District Judge Robert B. Kugler in Camden federal court to an information charging her with one count of hoax bomb threats. 

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

On the morning of Jan. 12, 2018, Toska called the Clerk’s Office of the Camden federal courthouse and stated there was a bomb in the building. The Clerk’s Office employee who answered the phone recognized Toska as a civil litigant with a case assigned to a U.S. District Court judge, who had previously issued an order directing Toska to cease all communications with the Clerk’s Office and permitting the Clerk’s Office to disconnect future calls from Toska.

Later than morning, Toska called back and said, “There’s a bomb in the building, run.” Bomb detecting K-9 units from the Camden County Police, U.S. Park Service (Philadelphia Office) and Camden County Sheriff’s Office responded to the federal courthouse.  

That afternoon, Toska again called another bomb threat into the Clerk’s Office. When the employee who answered the phone asked Toska why she was making bomb threats, Toska responded, “The judge is torturing me, so I am torturing you, an eye for an eye.”  

Meanwhile, earlier that same morning, Toska called the Hughes Justice Complex and stated that there was a bomb in the building. As a result of this call, officials at the Hughes Justice Complex evacuated the building.

The following post on “Amie Toska’s” Facebook account appeared that day: “I have had enough of being ignored I am prank calling the entire world.” Also, a Twitter account believed to be associated with Toska posted a “reply” stating, “I just called Doj in DC, Camden courts and Njtpd lawyer and told them there’s a bomb in the building then I hung up…There is no bomb but I will continue to scare them until I am heard…I want JUSTICE DAMMIT.” Another “reply” stated, “I’m not gonna stop calling the courts/doj/or njt lawyer and telling them there’s a bomb in the building. I will make them suffer by getting them scared. Let them shit in their pants for days. Idgaf….I want JUSTICE.”

The count of making hoax bomb threats is punishable by a maximum of five years in prison and a fine of $250,000. Sentencing is scheduled for July 18, 2019.

U.S. Attorney Carpenito credited the U.S. Marshal Service, under the direction of United States Marshal Juan Mattos Jr., District of New Jersey, and special agents of the FBI, South Jersey Resident Agency, Philadelphia Division, under the direction of Special Agent in Charge Michael T. Harpster, with the investigation leading to today’s guilty plea.

The government is represented by Deputy U.S. Attorney Matthew J. Skahill and Assistant U.S. Attorney Alyson M. Oswald of the U.S. Attorney’s Office in Camden, New Jersey.

NEWARK, N.J. – A Newark man previously convicted of four felonies in state court and a federal drug distribution crime was convicted by a federal jury today of possession with the intent to distribute heroin, possession of a handgun while committing a drug crime, and being a convicted felon in possession of a handgun, U.S. Attorney Craig Carpenito announced.

Jihad Garrett, 35, was convicted after a four-day trial before U.S. District Judge William J. Martini in Newark federal court. The jury deliberated for two and a half hours before returning the guilty verdicts.

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

On Feb. 23, 2018, Newark police officers saw Garrett in a vehicle that was similar to a vehicle wanted in a series of carjacking and shooting incidents over the previous month. When the police officers approached the car, Garrett told them, among other things, that he also was a police officer. While talking with Garrett, the police officers saw that Garrett had over $2,500 in cash rolled up in his breast pockets. After a canine unit indicated that there were drugs in the car, the car was towed and the police obtained a search warrant to conduct a further search of the car.  The police found over 500 individual doses of heroin packaged for street-level distribution and a .40 caliber handgun in the front seat area of the car.

Garrett had previously been convicted of four drug felonies in Essex and Union counties.  In 2011, Garrett was sentenced to 74 months in federal prison after being convicted for distribution of heroin.

The defendant is facing a maximum potential penalty of life in prison and a fine of up to $250,000. Sentencing is scheduled for Aug. 15, 2019.

U.S. Attorney Carpenito credited law enforcement officers of the Newark Police Department, under the leadership of Public Safety Director Anthony Ambrose; special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark; the Bureau of Alcohol Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Charlie Patterson; and the Essex County Sheriff’s Department, under the direction of Sheriff Armando Fontoura, with the investigation leading to today’s conviction.

The government was represented at trial by Senior Trial Counsel Robert Frazer and Assistant U.S. Attorney Desiree Latzer of the U.S. Attorney’s Office Organized Crime/Gangs Unit in Newark.

Robert Arellano, 65, of Albuquerque, New Mexico, was sentenced today in federal court in Trenton, New Jersey, to a total of four years in prison for his role in a multi-state dog fighting conspiracy. Assistant Attorney General Jeffrey Bossert Clark of the Justice Department’s Environment and Natural Resources Division and U.S. Attorney Craig Carpenito of the District of New Jersey made the announcement.

A jury previously convicted Arellano of one felony count of conspiracy to violate the animal fighting prohibitions of the federal Animal Welfare Act, and two felony counts of selling, transporting, and delivering dogs intended for use in an animal fighting venture. Arellano also pleaded guilty to three felony counts of possessing a dog intended for use in an animal fighting venture in a related federal case in New Mexico that was consolidated with his New Jersey case for sentencing. Judge Peter G. Sheridan presided over the trial and imposed the sentence, which includes three years’ supervised release following Arellano’s term of imprisonment.

Three other defendants were convicted as part of the same jury trial; two defendants will be sentenced on May 29, 2019, and the third defendant will be sentenced on May 30, 2019. 

“Animal fighting for sport is not an activity a civilized country tolerates,” said Assistant Attorney General Clark. “Our Division will continue to pursue and prosecute illegal animal fighting ventures across the country.”

“Dog fighting is vicious and cruel. Beyond the needless suffering it inflicts on animals, it exacts a toll on local animal shelters, humane organizations, and the taxpayers of New Jersey,” U.S. Attorney Carpenito said. “As today’s sentencing shows, if you fight dogs in New Jersey, you will face prosecution and imprisonment.”

“Dogfighting for entertainment and profit is the organized and heinous business of breeding and conditioning dogs to fight each other until one dog kills the other,” said U.S. Attorney John C. Anderson for the District of New Mexico.  “Today’s sentencing brings to an end Mr. Arellano’s 30 years in this unconscionable business, and hopefully will deter others who seek to profit from forcing animals fight to the death.  In New Mexico, we will continue to seek out and punish those who exploit and abuse animals.”

According to trial evidence and court documents filed in connection with the cases, the defendant and his associates regularly fought dogs – including to the death – and repeatedly trafficked in dogs with other dog fighters across several states for the purpose of dog fighting. Arellano and the other defendants also maintained significant numbers of fighting dogs and substantial dog fighting equipment, such as dog treadmills, intravenous drug bags and lines, “breeding stands” used to immobilize female dogs, and chains weighing up to several pounds per linear foot. A defendant who pleaded guilty to charges in a related case admitted that his dog died in his car on the way home after a dog fight. Evidence at trial showed that dog deaths from fighting were a common outcome. Another defendant convicted at trial attempted to set up a “class” for dog fighters to practice administering I.V. fluids to injured dogs, using live dogs as their practice subjects.

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

“Dog fighting, far from being any kind of ‘sport’, shows a complete disregard for animals and is both despicable and cruel,” said Brian Michael, Special Agent in Charge, Homeland Security Investigations, Newark. “HSI will continue to cooperate with our local, state and national partners, as happened here, to investigate such crimes so the perpetrators can be prosecuted to the fullest extent of the law.”

This case is part of Operation Grand Champion, a coordinated effort across numerous federal judicial districts to combat organized dog fighting.  The phrase “Grand Champion” is used by dog fighters to refer to a dog with more than five dog fighting “victories.” To date, eleven defendants from five states have been convicted and sentenced to a total of 164 months in prison as part of Operation Grand Champion. Additionally, 113 dogs have been rescued, and either surrendered or forfeited to the government. The government is represented by Trial Attorney Ethan Eddy of the Justice Department’s Environmental Crimes Section, and Assistant U.S. Attorney Kathleen O’Leary. The case is being investigated by the U.S. Department of Agriculture – Office of Inspector General, the U.S. Department of Homeland Security – Homeland Security Investigations, and the Federal Bureau of Investigation.

TRENTON, N.J. – A New Mexico man was sentenced today to 48 months in prison for his role in a multi-state dog fighting conspiracy, U.S. Attorney Craig Carpenito of the District of New Jersey and Assistant Attorney General Jeffrey Bossert Clark of the Justice Department’s Environment and Natural Resources Division announced.

Robert Arellano, 65, of Albuquerque, New Mexico, was convicted Oct. 16, 2018, of one felony count of conspiracy to violate the animal fighting prohibitions of the federal Animal Welfare Act, and two felony counts of selling, transporting, and delivering dogs intended for use in an animal fighting venture. Arellano also pleaded guilty to three felony counts of possessing a dog intended for use in an animal fighting venture in a related federal case in New Mexico that was consolidated with his New Jersey case for sentencing. Judge Peter G. Sheridan presided over the trial and imposed the sentence today in Trenton federal court.

Three other defendants were convicted as part of the same jury trial; two defendants will be sentenced on May 29, 2019, and the third defendant will be sentenced on May 30, 2019.

“Dog fighting is vicious and cruel,” U.S. Attorney Carpenito said. “Beyond the needless suffering it inflicts on animals, it exacts a toll on local animal shelters, humane organizations, and the taxpayers of New Jersey. As today’s sentencing shows, if you fight dogs in New Jersey, you will face prosecution and imprisonment.”

“Our justice system will not tolerate the torment and death of animals in the fighting ring, as this week’s sentencing proceedings demonstrate,” Assistant Attorney General Clark said. “In our Division, we will continue to place a high priority on pursuing and prosecuting illegal animal fighting ventures across the country.”

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

Arellano and his associates regularly fought dogs – including to the death – and repeatedly trafficked in dogs with other dog fighters across several states for the purpose of dog fighting. Arellano and the other defendants also maintained significant numbers of fighting dogs and substantial dog fighting equipment, such as dog treadmills, intravenous drug bags and lines, “breeding stands” used to immobilize female dogs, and chains weighing up to several pounds per linear foot. A defendant who pleaded guilty to charges in a related case admitted that his dog died in his car on the way home after a dog fight. Evidence at trial showed that dog deaths from fighting were a common outcome. Another defendant convicted at trial attempted to set up a “class” for dog fighters to practice administering I.V. fluids to injured dogs, using live dogs as their practice subjects.

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

In addition to the prison term, Judge Sheridan sentenced Arellano to three years of supervised release.

This case is part of Operation Grand Champion, a coordinated effort across numerous federal judicial districts to combat organized dog fighting. The phrase “Grand Champion” is used by dog fighters to refer to a dog with more than five dog fighting “victories.” To date, eleven defendants from five states have been convicted and sentenced to a total of 164 months in prison as part of Operation Grand Champion. Additionally, 113 dogs have been rescued, and either surrendered or forfeited to the government.

The government is represented by Assistant U.S. Attorney Kathleen O’Leary of the District of New Jersey and Trial Attorney Ethan Eddy of the Justice Department’s Environmental Crimes Section.

The case is being investigated by the U.S. Department of Agriculture – Office of Inspector General, the U.S. Department of Homeland Security – Homeland Security Investigations, and the Federal Bureau of Investigation.

Defense counsel: Samuel Bregman Esq., Albuquerque, New Mexico

NEWARK, N.J. – A Morris County, New Jersey, man has been arrested and charged in connection with allegedly building and exploding a bomb, U.S. Attorney Craig Carpenito announced.

Christopher Faschan, 31, of Landing, New Jersey, is charged by complaint with one count each of possession of numerous explosive/destructive devices, possession of precursor materials, and being a felon in possession of explosive materials, firearms and ammunition. He is scheduled to appear April 5, 2019, before U.S. Magistrate Judge Mark Falk in Newark federal court.

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

On Feb. 1, 2019, Faschan drove to the home of “Individual 1” in Stanhope, New Jersey, and displayed what he claimed to be a bomb to Individual 1. According to Individual 1, Faschan stated: “this may be a good area to let this thing off” before leaving the area. Shortly thereafter, Faschan detonated the bomb in the area of Lake Lackawanna in Stanhope. He then called Individual 1 and stated: “That’s something that could easily be put under someone’s car, not that I would do that or anything.”

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

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

The counts of possession of a destructive device, possession of explosive materials by a convicted felon, and possession of firearms by a previously convicted felon each carry a maximum penalty of 10 years in prison and a $250,000 fine.

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

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

NEWARK, N.J. – A member of the Grape Street Crips gang was found guilty today by a federal jury of racketeering conspiracy, murder in aid of racketeering, conspiracy to distribute heroin, and other drug crimes, U.S. Attorney Craig Carpenito announced today.

Khalil Stafford, a/k/a “Stod,” a/k/a “Homicide,” 34, of Newark, was convicted following a three-week trial before U.S. District Judge Madeline Cox Arleo in Newark federal court. The jury deliberated for four hours before returning the verdicts.

Stafford was charged – along with 13 other defendants –with RICO conspiracy, murder in aid racketeering, conspiracy to distribute one kilogram or more of heroin, and possession with intent to distribute one kilogram of more of heroin. All 14 defendants have now been convicted.

Another 66 members and associates of the Grape Street Crips who were arrested in a coordinated takedown in May 2015 were separately charged with drug-trafficking, physical assaults, and witness intimidation, and all have been convicted.

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

On June 19, 2010, during a family cookout on Garside Street in Newark, Stafford – a long-time member of the Grape Street Crips – confronted an individual about a drug debt.  Stafford and several other gang-members left the cookout to retrieve firearms and later returned.  They fired more than a dozen shots at the person whom Stafford originally confronted. A woman who was not part of the dispute was standing on a nearby porch, and was shot and killed. Two other people were wounded and survived.

Stafford was also involved in the distribution of heroin from 2003 through 2015.  Stafford sold heroin and cocaine at the James Baxter Terrace housing complex from 2003 until it was demolished in 2009. After Baxter Terrace was torn down, Stafford continued to distribute heroin and cocaine at the Wynona Lipman public-housing complex. In 2014, Stafford and a conspirator sold to DEA confidential informants nearly $20,000 worth of heroin in separate transactions.

Stafford faces a mandatory life sentence in connection with the murder in aid of racketeering. For the conspiracy to distribute heroin, Stafford faces a mandatory minimum term of 10 years in prison and a maximum sentence of life in prison. For the RICO conspiracy, Stafford faces a maximum term of life in prison. Sentencing is scheduled for June 12, 2019.

U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, special agents of the DEA, under the direction of Special Agent in Charge Susan A. Gibson, and special agents of the U.S. Attorney’s Office with the investigation leading to today’s conviction. He also thanked the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Theodore N. Stephens II, police officers and detectives of the Newark Police Department, under the direction of Public Safety Director Anthony F. Ambrose, and the Essex County Sherriff’s Office, under the direction of Sheriff Armando B. Fontoura, for their assistance with the investigation.

The government is represented by Assistant U.S. Attorney Osmar J. Benvenuto, Chief of the Organized Crime and Gangs Unit, Assistant U.S. Attorney Barry A. Kamar of the Criminal Division in Newark, and Assistant U.S. Attorney Richard J. Ramsay of the Appeals Division in Newark.

This case was conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF) and the FBI’s Safe Streets Task Force, a partnership between federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations and those primarily responsible for the nation’s illegal drug supply.

NEWARK, N.J. – A Union Township, New Jersey man admitted today to possessing two loaded handguns and large quantities of narcotics with the intent to distribute those narcotics, U.S. Attorney Craig Carpenito announced.

Quadir Allen, 41, pleaded guilty before U.S. District Judge William H. Walls in Newark federal court to all three counts of an indictment charging him with possession of firearms by a previously convicted felon, possession with intent to distribute over 100 grams of heroin, and possession of firearms during and in relation to a drug trafficking crime.

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

In January 2018, officers with the Union Township Police Department obtained a warrant for Allen’s arrest after he fled from a motor vehicle stop. On January 31, 2018, officers located Allen and stopped the car in which he was driving. During the stop, officers observed a handgun on the front passenger’s seat, which they later determined was loaded with hollow-point ammunition. A search of Allen’s car revealed an additional handgun that was also loaded with hollow-point ammunition. Officers also located large quantities of heroin and cocaine, which were packaged for street-level distribution. Allen previously was convicted of aggravated manslaughter in Essex County Superior Court.

The possession of firearms by a previously convicted felon count carries a maximum penalty of ten years’ imprisonment and a $250,000 fine. The possession of heroin with intent to distribute count carries a minimum penalty of five years’ imprisonment and a maximum penalty of forty years’ imprisonment, and a $5,000,000 fine. The possession of firearms during a drug trafficking crime carries a minimum penalty of five years’ imprisonment, which must run consecutively to any sentence imposed on the possession of heroin with intent to distribute count, a maximum penalty of life imprisonment, and a $250,000 fine. Sentencing is scheduled for July 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, and officers with the Union Township Police Department with the investigation leading to today’s guilty plea.

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

Defense counsel: Lorraine Gauli-Rufo, Esq.

NEWARK, N.J. – A Somerset County, New Jersey, man today admitted receiving images of child sexual abuse, U.S. Attorney Craig Carpenito announced.

Lomere T. Walls, 27, of Franklin Park, New Jersey, pleaded before U.S. District Judge Brian R. Martinotti in Newark federal court to an indictment charging him with one count of receipt of child pornography.

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

Walls used a peer-to-peer file sharing program, which he installed on his computer several years ago, to download videos and images of child sexual abuse. Between July and November of 2016, law enforcement downloaded dozens videos of child pornography from Walls’ computer. After executing a search warrant at Walls’ home in November of 2016, agents located 149 videos and 92 images of child sexual abuse on Walls’ computer and phone. Walls admitted that he had been actively searching for videos and images of child pornography, which he had previously saved on his computer.

The receipt of child pornography charge to which Walls pleaded guilty carries a maximum potential penalty of 20 years in prison, a mandatory minimum sentence of five years in prison and a $250,000 fine. Walls will be required to register as a sex offender. Sentencing is scheduled for Sept. 5, 2019.

U.S. Attorney Carpenito credited special agents with the Department of Homeland Security, Homeland Security Investigations, under the direction of Newark Special Agent in Charge Brian Michael, with the investigation leading to today’s guilty plea. The investigation was also assisted by the Somerset County Prosecutor’s Office under the direction of Michael Robertson.

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

Defense counsel: Eric Mark, Esq., Newark

NEWARK, N.J. – A City of Paterson police officer was sentenced today to six months in prison for concealing the assault of an attempted suicide victim by another police officer at St. Joseph’s Medical Center in Paterson, U.S. Attorney Craig Carpenito announced.

Police Officer Roger Then, 29, of Paterson, previously pleaded guilty before U.S. District Judge William J. Martini to Count 4 of the indictment against him, charging him with misprision of felony, for concealing the civil rights crime committed by his partner, Ruben McAusland. U.S. District Judge William H. Walls imposed the sentence today in Newark federal court.

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

Then and McAusland were police officers with the Paterson Police Department. On March 5, 2018, they responded to a call from an attempted suicide victim. The victim called 911 and was taken by the Paterson Fire Department to St. Joseph’s Medical Center. Then and McAusland responded to the victim’s residence and subsequently followed the Fire Department to the hospital to monitor the victim.

Two videos captured some of the events that took place in the hospital that night. In the first video, captured by hospital surveillance, the victim was in a wheelchair. McAusland was standing at the hospital admissions desk. The victim appeared to throw an object down the hallway. McAusland, looking angry, pushed the victim’s wheelchair with his hands and punched the victim in the face. As the victim fell towards the ground, still in the wheelchair, Then grabbed the victim by the back of the neck and further pushed the victim to the ground. Then reached for his handcuffs, but McAusland told Then not to handcuff the individual and McAusland further stated, “I got this.”

In the second video, taken by Then, using his cellular telephone, the victim was on his back in a hospital bed. The victim said, “Right here? See my cheek?” McAusland said, “You have the right guy today.” Then turned the camera toward himself and smiled. Then next turned the camera back towards the victim and McAusland. The victim said, “Ha, ha, bitch.” McAusland responded, “I’m a what?” The victim said, “Do it.” McAusland put on a pair of hospital gloves and proceeded to violently strike the victim twice across the face. McAusland then stood over the victim and said, “I ain’t fucking playing with you.” The victim covered his face with his hands and was silent. McAusland continued, “Calm your ass down.” Rather than intervening to stop McAusland’s assault of the victim, Then recorded it.

Then and McAusland submitted a police report in connection with the events of March 5, 2018. The police report did not mention that McAusland punched the victim and that Then grabbed the victim by the neck and pushed the victim towards the ground, as captured in the first video. The police report also did not mention that McAusland violently struck the victim, twice, in a hospital room, as depicted in the second video. Nor did the police report mention that Then had recorded the second assault on his cell phone and failed to intervene to stop it from happening.

The victim suffered multiple injuries to his face, including an eye injury that required surgery, as a result of these assaults.

McAusland previously pleaded guilty to possessing with intent to distribute narcotics and deprivation of civil rights under color of law and was sentenced March 27, 2019, to 66 months in prison.

In addition to the prison term, Judge Walls sentenced Then to one year of supervised release.

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

The government is represented by Assistant U.S. Attorneys Rahul Agarwal, Deputy Chief of the Criminal Division, and Lee M. Cortes Jr., Deputy Chief of the Special Prosecutions Division.

Defense counsel: John P. McGovern Esq., Newark

NEWARK, N.J. – Four men have been charged after they were arrested in New York for their participation in a conspiracy to distribute heroin and fentanyl, U.S. Attorney Craig Carpenito announced today.

Eddy Urena Rodriguez, 34, Daury Contreras Ulerio, 34, Reimon Genao Rosario, 22, and Francisco Mercedes Gil, 30, all of Bronx, New York, are charged by complaint with one count of conspiracy to possess with intent to distribute approximately 100 grams or more of heroin and fentanyl. Rodriguez appeared today before U.S. Magistrate Judge Mark Falk and was detained. Ulerio, Rosario, and Gil all appeared last week before U.S. Magistrate Judge Steven C. Mannion and were detained.

Previously, three other individuals – Jhan Carlos Capellan Maldonado, 30, Jose Antonio Vasquez Pena, a/k/a “Tono,” 46, and Dilson Vasquez Genao, 22 – were arrested and detained after appearing before U.S. Magistrate Judges Joseph A. Dickson and Michael A. Hammer.

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

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

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

Genoa went back inside the building and was followed by law enforcement officers, who watched as Genoa entered Maldonado’s apartment with a key, still carrying the shopping bags. On Feb. 27, 2019, law enforcement searched Maldonado’s apartment and found seven individuals inside, including Rodriguez, Ulerio, Rosario, Gil, Maldonado, Pena, and Genao. All seven defendants attempted to escape out a window in the bedroom, and all but one were apprehended and arrested by law enforcement officers waiting outside.

Each defendant faces a mandatory minimum penalty of five years in prison, a maximum potential penalty of 40 years in prison, and a $5 million fine.

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

The government is represented by Assistant U.S. Attorney Jason S. Gould of the Opioid Abuse Prevention and Enforcement Unit in Newark.

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

NEWARK, N.J. – A Passaic County, New Jersey, man appeared in Newark federal court today on a charge of distributing images of child sexual abuse, U.S. Attorney Craig Carpenito announced.

Vaughn Tiedeman, 46, of West Milford, New Jersey, is charged by complaint with one count of distributing child pornography. He made his initial appearance before U.S. Magistrate Judge Cathy L. Waldor in Newark federal court and was remanded without bail.

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

Between July 2018 and January 2019, Tiedeman distributed at least 50 videos and 100 images depicting the sexual abuse of children via the BitTorrent peer-to-peer network.

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

U.S. Attorney Carpenito credited special agents with the Department of Homeland Security, Homeland Security Investigations (HSI), Newark Field Office, under the direction of Special Agent in Charge Brian A. Michael, with the investigation leading to the charges. He also thanked the West Milford Police Department, the Passaic County Prosecutor’s Office, and the U.S. Postal Inspection Service for their assistance in the investigation.

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

TRENTON, N.J. – An Asbury Park, New Jersey, man was sentenced today to 11 years in prison on charges of drug distribution and violation of supervised release, U.S. Attorney Craig Carpenito announced. 

Sean Lambert, a/k/a “Pretty Tone,” 48, was sentenced to 120 months in prison for distributing cocaine base, commonly known as “crack,” from a residential building in Asbury Park. He was also sentenced to an additional 12 months in prison – to be served following his completion of a 120-month prison term – for distributing the crack while he was serving a term of federal supervised release. At the time of his arrest, Lambert was on supervised release after completing a 120-month sentence for illegally possessing a firearm.

Lambert pleaded guilty before U.S. District Judge Michael A. Shipp to an indictment charging him with two counts of distributing cocaine base and entered a guilty plea admitting to having violated his court-ordered terms of supervised release. Judge Shipp imposed the sentence today in Trenton federal court.

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

On two occasions – Feb. 28, 2018, and March 9, 2018, Lambert sold cocaine base out of an apartment within a multi-family building in Asbury Park. During the second sale, Lambert sold over 28 grams of cocaine base.

When he was arrested, Lambert was on federal supervised release following a 2008 conviction – also in federal court in Trenton – for being a felon in possession of a firearm. As such, he was required to not commit another federal, state, or local crime during his period of supervision. Lambert admitted that, by selling cocaine base, he violated this condition.

Due to his having a prior first-degree drug distribution conviction in New Jersey, an enhanced penalty information was filed, increasing the mandatory minimum penalty on the drug distribution charge to 10 years in prison.

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

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. 

NEWARK, N.J. – An Essex County, New Jersey, man has been convicted of being a felon in possession of a firearm, New Jersey, U.S. Attorney Craig Carpenito announced today.

Shakey Hoover, 38, of Newark, was convicted March 27, 2019, of one count of being a felon in possession of a weapon following a two-day trial before U.S. District Judge Stanley R. Chesler in Newark federal court. The jury deliberated 90 minutes before returning the guilty verdict.

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

On the evening of April 23, 2017, four individuals — Lashaunda Glenn, her boyfriend, her sister, and her sister's boyfriend — arrived by car at Glenn’s mother’s house in Newark to pick up a television belonging to Glenn’s sister. Glenn’s mother lived in the third-floor apartment of the house with Hoover, her longtime boyfriend and a convicted felon.

Glenn and Hoover began arguing. As the confrontation became more heated, Hoover pulled from his waistband a small silver revolver, pointed it at the group, and threatened to kill them. Glenn and her companions ran to a nearby police station to report what had happened. Newark police arrived at the house a few minutes later and found a silver revolver loaded with one bullet. An examination of the gun found Hoover’s fingerprint on it.

The count of being a felon in possession of a firearm carries a maximum potential penalty of 10 years in prison and a $250,000 fine. Sentencing is scheduled for July 10, 2019.

U.S. Attorney Carpenito credited the Newark Police Department, under the direction of Public Safety Director Anthony Ambrose; the N.J. State Police, under the direction of Col. Patrick J. Callahan; and special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Acting Special Agent in Charge Christopher Taylor in Newark, with the investigation leading to the guilty verdict.

The government is represented by Assistant U.S. Attorneys Jason S. Gould and Stephen Ferketic of the Criminal Divison in Newark.

NEWARK, N.J. – A City of Paterson police officer was sentenced today to 66 months in prison for violating an individual’s civil rights by assaulting him at a hospital and repeatedly distributing narcotics, including drugs he stole from a crime scene while on duty, U.S. Attorney Craig Carpenito announced.  

Ruben McAusland, 27, of Paterson, pleaded guilty on June 27, 2018, before U.S. District Judge William H. Walls to an information charging him with possessing with intent to distribute narcotics and deprivation of civil rights under color of law. Judge Walls imposed the sentence today in Newark federal court.

“Today’s sentencing of Ruben McAusland marks the important role that the U.S. Attorney’s Office for the District of New Jersey plays in identifying and holding accountable officers of the law who breach their sworn duty to serve the public,” U.S. Attorney Carpenito said.  “Through prosecutions like this one, police officers like McAusland – who dealt drugs, stole from a crime scene, and viciously attacked a person who sought help from the Paterson Police Department – are removed from positions where they can violate the public trust and deprive others of their civil rights under color of law. We will continue to vigilantly pursue these cases, recognizing that the people of Paterson, and all of New Jersey, deserve better.”  

“The facts of this case are especially troubling to those of us in law enforcement,” Special Agent in Charge Gregory W. Ehrie of the Newark FBI Field Office said. “When an officer betrays the oath to protect and serve, it tarnishes the law enforcement community and puts the public at risk. The FBI prides itself on having a solid working relationship with our state and local law enforcement partners. But by no means will we look the other way if an officer or agent of the law is breaking the rules that he or she is sworn to uphold.” 

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

Between October 2017 and April 2018, McAusland sold various types and quantities of narcotics to an individual who was cooperating with law enforcement. In October 2017, McAusland sold the individual approximately 35 grams of marijuana, 48 grams of heroin, 31 grams of cocaine, and 31 grams of crack cocaine. McAusland admitted that he stole these narcotics from a crime scene while on duty and in uniform as a police officer. 

McAusland also sold the individual two pounds of marijuana between November 2017 and January 2018. In addition, on multiple occasions between February 2018 and April 2018, McAusland sold pills that were made to resemble Percocet doses but were actually made of heroin. 

    On March 5, 2018, McAusland and his partner, Roger Then, 29, of Paterson, were on duty and responded to a call from an attempted suicide victim. McAusland and Then went to the victim’s house but were told the victim had been transported to St. Joseph’s Medical Center in Paterson.

    McAusland first met the victim, who was in a wheelchair, in the hospital waiting room. McAusland admitted that during the encounter, he pushed the victim and punched him in the face. In addition, Then allegedly grabbed the victim by the neck and pushed him into the ground. Afterwards, the victim was taken to a patient room. 

    McAusland and Then had another encounter with the victim in the hospital room, which Then recorded on his cellphone. McAusland admitted that, while the victim was on his back in a hospital bed, he put on a pair of hospital gloves and violently struck the victim twice across the face. 

    McAusland and Then filed a false police report in connection with the foregoing events. McAusland admitted that they purposely omitted from the report the fact that McAusland violently struck the victim multiple times and that Then grabbed the victim by the neck and pushed him into the ground. 

    The victim suffered multiple injuries to his face, including an eye injury that required surgery, as a result of these assaults.  

In addition to the prison term, Judge Walls sentenced McAusland to three years of supervised release and ordered him to pay restitution of $32,892.

Then pleaded guilty before Judge Walls on Dec. 6, 2018, to one count of misprision of felony for concealing civil rights violations. He is scheduled to be sentenced April 2, 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 plea. He also thanked the Passaic County Prosecutor’s Office, under the direction of Passaic County Prosecutor Camelia M. Valdes, the Paterson Police Department, under the direction of Paterson Police Director Jerry Speziale and Police Chief Troy Oswald, and the Paterson Police Department Office of Internal Affairs, for their assistance in the investigation.

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

NEWARK, N.J. – An owner of two information technology companies was sentenced today to 15 months in prison for his role in using phony documents to fraudulently obtain H1-B visas for foreign workers and submitting false tax returns, U.S. Attorney Craig Carpenito announced.

Sowrabh Sharma, 34, of New York, New York, previously pleaded guilty before U.S. District Judge Kevin McNulty in Newark federal court to a superseding information charging him with conspiracy to commit visa fraud and with subscribing to false tax returns. Judge McNulty imposed the sentence today in Newark federal court.

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

SCM Data Inc. and MMC Systems Inc. offered consultants to clients in need of IT support. Both companies recruited foreign nationals with purported IT expertise, often student visa holders or recent college graduates, and sponsored them for H-1B visas with the stated purpose of working for SMC Data and MMC Systems’ clients throughout the United States.

Sharma admitted that from 2010 through April 2015, he and others falsely represented to U.S. Department of Homeland Security, U.S. Citizenship and Immigration Services (USCIS) that dozens of foreign workers had full-time “in-house” positions, and would be paid an annual salary, as required to secure the visas. However, Sharma and his companies only paid the foreign workers when they were placed at a third-party client, or a company that entered into a contract for services with SCM Data and MMC Systems. Sharma further admitted that he and SCM Data and MMC Systems were violating USDOL regulations by not paying workers who were “benched,” or not working on a project.

Sharma also admitted that in some instances, foreign workers who were “benched” between projects and not working were told that if they wanted to maintain their H-1B visa status, they would need to come up with what their gross wages would be in cash and give it to SCM Data and MMC Systems to generate phony payroll checks.

Sharma also admitted that he intentionally overstated and claimed false expenses pertaining to SCM Data and MMC Systems on his U.S. Individual Tax Returns for 2011, 2012, 2013, and 2014 that resulted in a tax loss to the United States of over $1.1 million.

In addition to the prison term, Judge McNulty sentenced Sharma to one year of supervised release. Sharma made payment of the $1.1 million tax loss and penalties to the IRS prior to sentencing.

U.S. Attorney Carpenito credited special agents of the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), under the direction of Special Agent in Charge Brian A. Michael: the U.S. Department of Labor, Office of Inspector General, under the direction of Acting Special Agent in Charge Michael C. Mikulka, in New York: IRS – Criminal Investigation, under the direction of John R. Tafur; and U.S. Citizenship and Immigration Service, under the direction of John E. Thompson, District Director of the Newark District, with the investigation.

The government is represented by Assistant U.S. Attorneys Joyce M. Malliet of the U.S. Attorney’s Office’s National Security Unit in Newark.

Defense counsel: John P. Lacey Esq. and Leo J. Hurley Esq., Newark

NEWARK, N.J. – A New Brunswick, New Jersey, man was sentenced today to life plus 20 years in prison for his violent role in a racketeering conspiracy involving multiple brothels that employed illegal aliens throughout New Jersey, U.S. Attorney Craig Carpenito announced.

Wilmer Chavez Romero, a/k/a “Charmin,” 29, was previously convicted of all eight counts of an indictment charging him with one count each of racketeering, racketeering conspiracy, assault with a dangerous weapon in aid of racketeering, and conspiracy to harbor aliens; two counts of using a firearm for a violent crime; and two counts of murder in aid of racketeering. He was convicted following a two and a half-week trial before U.S. District Judge William H. Walls, who imposed the sentence today in Newark federal court.

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

Chavez Romero served as an enforcer for a prostitution enterprise that helped illegal aliens enter the country and employed them at brothels throughout Cumberland, Essex, Mercer, Middlesex, Monmouth and Ocean counties. The enterprise used threats and acts of violence – including burglary, assaults, and murder – to expand its territory, thwart rival brothels, exact revenge, punish enterprise members and associates who had been disloyal, and silence people they believed were cooperating with law enforcement.

Chavez Romero acted at the direction of the leaders of the enterprise, Juan Fredy Hernandez-Zozaya, 40, and his girlfriend, Elizabeth Rojas, 37, both of New Brunswick, who oversaw brothels in New Brunswick, Trenton, Orange, Asbury Park, Lakewood, and Bridgeton.

Chavez Romero personally committed acts of violence to further the enterprise, including participating in the murders of two victims during separate robberies. On Sept. 4, 2012, Chavez Romero, armed with a firearm, entered a rival brothel house in Trenton with the intent to rob the house. During the robbery, one victim was shot in the leg and survived, while another was shot and killed.

On Jan. 23, 2013, Chavez Romero entered another rival brothel in Trenton armed with a .40 caliber firearm. Chavez Romero attempted to commit a robbery when a fight broke out and a victim was shot and killed.

In addition, during recorded interviews with law enforcement in 2012 and 2014, Chavez Romero discussed his role in the murders, as well as beatings, shootings, and other acts of violence that he committed to further the enterprise’s goals and shut down its competition. As part of the enterprise, Chavez Romero also conspired to conceal and harbor aliens and aided in their interstate transport for use in the prostitution enterprise.

U.S. Attorney Carpenito credited special agents of Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Brian Michael in Newark, as well as the Cumberland County Prosecutor’s Office, Trenton Police Department, Mercer County Prosecutor’s Office, and the N.J. State Police Ballistics Lab, with the investigation leading to today’s sentencing.

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

Defense counsel: Kevin F. Carlucci Esq. and Carol Gillen Esq., Assistant Federal Public Defenders, Newark

CAMDEN, N.J. – The former manager of a Gloucester County, New Jersey, bulk mailing company today admitted defrauding the U.S. Postal Service (USPS) of more than $1.5 million in postage, U.S. Attorney Craig Carpenito announced.

Steven Kaczorowski, 46, of Sicklerville, New Jersey, pleaded guilty before U.S. District Judge Renée Marie Bumb in Camden federal court to an information charging him with one count of mail fraud.

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

Steven Kaczorowski managed a business that prepared bulk mail, typically for shipping mass mailings on behalf of other businesses, educational institutions and charitable organizations. With the assistance of the company owner, Anthony L. Bucolo, Kaczorowski defrauded the USPS of more than $1.5 million in postage while billing clients as if such postage had been paid. Kaczorowski and Bucolo committed the fraud by various means, including by underreporting the volume of mail pieces actually mailed, altering USPS forms, and adding mail onto pallets, trays, tubs or sacks after the mail had been accepted and postage assessed and collected by a postal employee. Bucolo pleaded guilty to the conspiracy on Nov. 18, 2018, before Judge Bumb, but died prior to sentencing. The bulk mailing business is no longer operational.

The mail fraud conspiracy charge to which Kaczorowski pleaded guilty carries a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gross gain or loss resulting from the offense. In his plea agreement, Kaczorowski agreed to make restitution for the full amount of the loss, which is estimated at more than $1.5 million. Sentencing for Kaczorowski is scheduled for July 9, 2019.

U.S. Attorney Carpenito credited postal inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge Daniel B. Brubaker, Philadelphia Division, 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 in Camden.

Defense counsel: Patrick J. Egan Esq., Philadelphia

NEWARK, N.J. – A Keasbey, New Jersey, tax preparer today admitted filing a false tax return for two clients and failing to file a tax return, U.S. Attorney Craig Carpenito announced.

David Patterson, 37, was indicted in October 2018 and pleaded guilty today before U.S. District Judge Esther Salas in Newark federal court to Count 24, aiding and assisting in the preparation of a false income tax return, and Count 25, failure to file a tax return for 2013, of the superseding indictment.

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

Patterson owned D&D Tax Service LLC, a tax preparation business located in Keasbey. He admitted preparing a fraudulent tax return on behalf of two clients for tax year 2012 in which he falsified the clients’ medical and dental expenses, gifts to charity and unreimbursed employee expenses. He also admitted failing to file an individual tax return and pay federal income taxes for calendar year 2013.

The false filing count carries a maximum potential penalty of three years in prison and a $250,000 fine. The failure to file count carries a maximum potential penalty of up to one year in prison and a $100,000 fine. For purposes of sentencing, Patterson admitted to aiding and assisting in the preparation of 23 additional false tax returns and failing to file tax returns for calendar years 2014 and 2015, resulting in an aggregate loss of $290,321. Sentencing is scheduled for Aug. 12, 2019.

U.S. Attorney Carpenito credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge John R. Tafur in Newark, the Department of Justice Tax Division, and special agents of the U.S. Attorney’s Office, District of New Jersey, with the investigation leading to today’s guilty plea.

The government is represented by Assistant U.S. Attorney Deborah J. Gannett of the U.S. Attorney’s Office Asset Recovery and Money Laundering Unit and Trial Attorney Eric Powers of the Department of Justice Tax Division.

Defense counsel: James Friedman Esq., New Brunswick, New Jersey

NEWARK, N.J. – A City of Paterson police officer was arrested today and charged with conspiring to violate the civil rights of motor vehicle occupants and others in Paterson, New Jersey, U.S. Attorney Craig Carpenito announced.

Daniel Pent, 32, of Paterson, was arrested by special agents of the FBI on a complaint charging him with conspiring to deprive individuals of civil rights under color of law. Pent is scheduled to have his initial appearance this afternoon before U.S. Magistrate Judge Steven C. Mannion in Newark federal court.

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

Pent, and other Paterson police officers, including Eudy Ramos, stopped and searched motor vehicles, without any justification, and stole cash and other items from the occupants of the motor vehicles. Pent, Ramos, and others also illegally stopped and searched individuals in buildings or on the streets of Paterson and seized cash from those individuals.

On Feb. 1, 2017, Pent and Ramos stopped and searched a vehicle in Paterson, detained and handcuffed the occupants, and stole approximately $10,000 from one of the occupants. Pent told Ramos that either they should take all of the money or they should take none of it, and they chose to take all of it. They split the money between themselves. Pent and Ramos subsequently arrested the victim and charged the victim with loitering in a drug area. Pent filled out a prisoner property report for the victim that falsely stated that the victim had approximately $36 on his person. Ramos and Pent submitted an incident report in which they omitted the fact that they had located, and seized, $10,000 from the victim.

A federal grand jury indicted Ramos on March 20, 2019, for his role in the conspiracy and other civil rights and false records charges. His case is pending before U.S. District Judge Katharine S. Hayden.

The conspiracy to violate civil rights charge carries a maximum penalty of 10 years in prison and a fine of $250,000.

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.

NEWARK, N.J. – An East Orange, New Jersey, man was charged today with conspiring to transact in criminal proceeds involving $2.36 million in funds obtained through a business email scheme, U.S. Attorney Craig Carpenito announced.

Samora Patterson, 40, is charged by complaint with one count of conspiring to transact in criminal proceeds. He is scheduled to make his initial appearance this afternoon before U.S. Magistrate Judge Steven C. Mannion in Newark federal court.

According to the complaint:

In March 2015, three related real estate companies entered into a multi-million dollar transaction to sell certain commercial real estate properties. “Title Company A” was the closing agent for the transaction.

On May 7, 2015, immediately before the transaction was scheduled to close, hackers impersonating the president of the three real estate companies sent a fraudulent email to Title Company A with wire instructions for the net closing proceeds. The fraudulent wire instructions directed Title Company A to wire $2.36 million to an account controlled by Patterson. Over the next several days, Patterson withdrew the $2.36 million from his account through cashier’s checks and cash.

The count with which Patterson is charged carries a maximum potential penalty of 10 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense.

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 charge.

The government is represented by Assistant U.S. Attorney Sean M. Sherman of the U.S. Attorney’s Office Public Protection 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 Bergen County, New Jersey, man was charged today with making false declarations in relation to a bankruptcy proceeding, U.S. Attorney Craig Carpenito announced.

Victor Osorio, 40, of Cresskill, New Jersey, is charged by complaint with two counts of bankruptcy fraud. He is scheduled to make his initial appearance 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:

On Feb. 16, 2017, Osorio filed a voluntary petition for relief under Chapter 7 of the Bankruptcy Code in U.S. Bankruptcy Court for the District of New Jersey. Osorio signed the bankruptcy petition under penalty of perjury, declaring that the information provided was true and correct.

In the petition, Osorio stated that none of his affiliates had a pending bankruptcy case, failing to disclose that a business in which he had an interest, “Business 1,” had a bankruptcy case pending at the time in U.S. Bankruptcy Court for the Southern District of New York.

Osorio also filed Schedules of Assets and Liabilities, signed under penalty of perjury, in which he stated that he did not own or have an interest in any incorporated or unincorporated businesses. Osorio failed to disclose that he had an ownership interest in Business 1 – and he had declared approximately seven months earlier in Business 1’s bankruptcy documents that he was its sole owner – and had an ownership interest in another business, Business 2.

In the Schedules, Osorio also stated that he did not own or have an interest in any checking, savings or other financial accounts, failing to disclose a bank account with a bank based in the Dominican Republic in which he had an interest.

On Feb. 24, 2017, Osorio filed amendments to the schedules, disclosing a partial ownership interest in Business 1. However, the amendments still failed to disclose an ownership interest in Business 2 and the bank account in the Dominican Republic.

The bankruptcy fraud charge carries a maximum potential penalty of five years in prison and a $250,000 fine, or twice the gross gain or loss from the offense.

U.S. Attorney Carpenito credited New York City Police Department detectives, under the direction of New York City Police Department Commissioner Paul P. O’Neill, assigned to the Homeland Security Investigations Border Security Enforcement Task Force (BEST); and special agents of HSI-New York, under the direction of Special Agent in Charge Angel M. Melendez, assigned to HSI/NY BEST, with the investigation leading to today’s charge.

The government is represented by Assistant U.S. Attorney Dara Govan, Chief of the U.S. Attorney’s Office Public Protection Unit in Newark; Assistant U.S. Attorney Sean M. Sherman, of the Public Protection Unit; and Special Assistant U.S. Attorney Ben Teich of the Economic Crimes Unit.

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

NEWARK, N.J. – A federal grand jury indicted a City of Paterson, New Jersey, police officer for conspiring to violate individuals’ civil rights by stopping and searching people in their vehicles and on the street and stealing their cash, U.S. Attorney Craig Carpenito announced.

Eudy Ramos, 28, of Paterson, was charged in a nine-count indictment with conspiring to violate, and violating, the civil rights of individuals in Paterson, and with filing multiple false reports to conceal his criminal conduct. Ramos was previously charged by criminal complaint in April 2018. He will be arraigned in federal court on a date to be determined.

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

Eudy Ramos, Jonathan Bustios, and Matthew Torres were police officers with the Paterson Police Department (PPD). From at least 2016 to April 2018, they and other police officers, identified in the indictment as PPD Officer 1 and PPD Officer 2, allegedly targeted, stopped, and searched vehicles and the occupants of those vehicles and illegally seized cash from them. They also illegally stopped and searched individuals in buildings or on the streets of Paterson and seized their cash. They split the cash among themselves and submitted false reports to the PPD, omitting their illegal conduct or lying about it.

Among the methods employed to carry out the conspiracy, Ramos and the other officers used text messages to communicate about their criminal conduct. For instance, on Feb. 24, 2018 Ramos sent a text message to Bustios and Torres asking if they were in the mood for “weekend mangoes,” using the code word “mango” to refer to the illegal seizure of cash. On Feb. 25, 2018, Ramos sent a text message to Bustios, telling Bustios that Ramos was “tryna get someone in a car,” referring to Ramos’ plan to illegally steal cash from the occupants of vehicles in Paterson. On Dec. 7, 2017, Bustios sent a text message to Ramos, “83 auburn back door is open,” and Ramos responded, “On my way.” The address 83 Auburn Street was one of several locations that Ramos and others targeted for illegal cash seizures.

Some instances of Ramos’ and his conspirators illegal conduct include:

On Feb.1, 2017, Ramos and another PPD officer stopped and searched a vehicle, detained and handcuffed the occupants, and stole approximately $10,000 from one of the passengers. Ramos and his conspirator split the money between themselves and omitted any mention of the $10,000 in the PPD incident report and prisoner property report.

On Dec. 1, 2017, Ramos and Bustios stopped and searched an individual on a street corner in Paterson and stole approximately $1,000 from the individual. After the theft, a video of a portion of the encounter was posted to Twitter.

On Dec. 7, 2017, Torres and Ramos conducted a vehicle stop in Paterson. Torres and Ramos searched the vehicle, the driver, and the passenger, who had $3,100 and marijuana. Ramos told the passenger that instead of charging the passenger with distribution of marijuana they could take $500 from the passenger and have the passenger sign a piece of paper. Ramos then purportedly placed a call to his superior and told the passenger that the superior officer said it had to be $800. Ramos took out a piece of paper, wrote on it, and told the passenger to sign it. The passenger did not know what was written on the paper. Afterwards, Torres and Ramos released the driver and passenger. Torres and Ramos shared the stolen cash proceeds. Ramos and Torres did not report the stop and search of the vehicle and its occupants, or the cash seizure, to the Paterson Police Department.

The conspiracy count carries a maximum penalty of 10 years in prison and the substantive Counts 2 to 6 each carry a maximum penalty of one year in prison. The false records counts each carry a maximum penalty of 20 years in prison. The maximum fine for the felony counts is $250,000, and the maximum fine for the misdemeanor Counts 2 to 6 is $100,000.

U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, with the investigation leading to today’s indictment. He also thanked the 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: Miles Feinstein Esq., Clifton, New Jersey

NEWARK, N.J. – A New York woman was sentenced today to 60 months in prison for her role in a Dominican drug trafficking ring responsible for distributing multi-kilogram quantities of heroin in New Jersey, U.S. Attorney Craig Carpenito announced.

Maria Peterson, a/k/a “Chabela” 48, previously pleaded guilty before U.S. District Judge Kevin McNulty to an information charging her with one count of conspiracy to distribute more than a kilogram of heroin and one substantive count of distributing more than a kilogram of heroin. Judge McNulty imposed the sentence today in Newark federal court.

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

During the course of an investigation into a drug trafficking organization operating in New Jersey, the Dominican Republic, Mexico, and elsewhere, law enforcement learned that Peterson and others served as local distributors for the organization in New Jersey and New York.

The narcotics, which were usually transported to New Jersey and New York via truck, were received and paid for by the defendants before they were distributed on the street. This drug trafficking organization has been linked to several multiple-kilogram seizures of heroin, including a seizure of approximately two kilograms of heroin in March 2015 in New York, a seizure of approximately four kilograms of heroin in November 2015 in New Jersey, and a seizure of approximately 10 kilograms of heroin in New Jersey in January 2017.

Peterson admitted that on March 25, 2015, she receiving a package of nearly two kilograms of heroin at her New York address, which she gave to a conspirator. She also admitted providing money to a conspirator in order to pay for some or all of the four-kilogram heroin shipment that was sent to New Jersey on Nov. 28, 2015.

In addition to the prison term, Judge McNulty sentenced Peterson to three years of supervised release.

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.

U.S. Attorney Carpenito credited special agents and task force officers with the Drug enforcement Administration, under the direction of Special Agent in Charge Susan A. Gibson, and officers of the N.J. State Police, Trafficking North Unit, under the direction of Superintendent Col. Patrick Callahan, with the investigation.

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

Defense Counsel: Scott D. Finckenauer Esq., Fairview, New Jersey

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

Jermaine Grant, 43, of Burlington Township, New Jersey, and Lincoln Warrington, 48, of Bergen County, New Jersey, pleaded guilty before U.S. District Court Judge William J. Martini in Newark federal court to Count One of the indictment against them, charging them with conspiring to defraud the United States.

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

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

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

The tax fraud conspiracy charge to which Grant and Warrington pleaded guilty carries a maximum potential penalty of five years in prison and a $250,000 fine. If accepted by the court, the plea agreement further provides that each defendant will be sentenced to a maximum of 30 months in prison. Sentencing is scheduled for July 23, 2019.

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

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

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

TRENTON, N.J. – A Passaic County, New Jersey, man and a Bergen County, New Jersey, man have been arraigned for their respective roles in a reverse mortgage scheme that took advantage of several elderly homeowners, U.S. Attorney Craig Carpenito announced today.

Rafael Peralta, 46, of Clifton, New Jersey, and Philip Puccio Jr., 40, of Mahwah, New Jersey, were indicted Feb. 8, 2019, by a federal grand jury on one count of conspiracy to commit bank fraud and six counts of bank fraud. They were arraigned March 15, 2019, before U.S. District Judge Anne E. Thompson in Trenton federal court.

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

From November 2007 through December 2010, Peralta and Puccio, home repair contractors, allegedly conspired to fraudulently obtain Home Equity Conversion Mortgage (HECM) – also known as reverse mortgage – proceeds by submitting inflated and fraudulent documentation to various victim banks to influence their decision to approve and fund HECMs. Peralta and Puccio recruited a conspirator to prepare inflated real estate appraisals that falsely increased the value of the properties securing the HECMs, thereby influencing each lender’s decision to provide loans in amounts greater than what would otherwise be available.

Peralta and Puccio also caused the submission of false and fraudulent loan documents that actively concealed the disbursement of loan proceeds to Peralta, Puccio, and entities they owned and controlled. The diverted loan proceeds were deposited into bank accounts controlled by Peralta and Puccio and used for their personal benefit and to further the conspiracy.

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

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

The government is represented by Special Assistant U.S. Attorneys Kevin Di Gregory and Charlie Divine of the U.S. Attorney’s Office Criminal Division in Newark and the Federal Housing Finance Agency, Office of the Inspector General.

Defense counsel: Peralta: TBD
Puccio: Kevin Roe Esq., Hackensack, New Jersey

NEWARK, N.J. – The Department of Justice today filed a Statement of Interest in U.S. District Court in New Jersey supporting claims by the Ramapough Mountain Indians (Ramapough) that the Township of Mahwah, New Jersey, violated the tribe’s rights under the Religious Land Use and Institutionalized Person’s Act of 2000 (RLUIPA) by interfering with religious assembly on tribal property known as “Sweet Water.”

“RLUIPA protects the rights of all religious communities to worship on their land free from discriminatory barriers and unlawful burdens,” New Jersey U.S. Attorney Craig Carpenito said. “Our office will continue to vigorously enforce the rights guaranteed by RLUIPA and take steps to ensure that it is applied correctly in our District.”

“RLUIPA is an important law protecting the religious exercise of people of all faiths. The Department of Justice is committed to ensuring that this law and other laws protecting religious freedom are fully and properly applied,” Eric Dreiband, Assistant Attorney General for Civil Rights, said.

In the suit, Ramapough Mountain Indians, Inc. v. Township of Mahwah, filed last May, the Ramapough allege that the Township substantially burdened their religious exercise by rescinding a zoning permit that authorized religious worship, limiting the number of people permitted on the property for religious gatherings, demanding the removal of structures central to the Ramapough’s worship including a sweat lodge, a prayer circle, and an altar, issuing large fines, and initiating civil and criminal enforcement proceedings. The tribe also alleges that the Township treated it differently from other similarly situated nonreligious groups.

In September 2018, the Ramapough sought to amend their complaint. The United States’ Statement of Interest argues that the amended complaint properly state claims under RLUIPA. The United States argues that the Township has imposed a substantial burden on the Rampough’s religious exercise without adequate justification, and has not treated its use of the land equally with nonreligious uses of land. The Statement of Interest further argues that those RLUIPA claims, which allege that the Township’s conduct has “significantly chilled Ramapough’s use of the land for religious purposes,” are ripe for consideration by the court.

RLUIPA is a federal law that protects religious institutions from unduly burdensome or discriminatory land use regulations. Last year, the Justice Department announced its “Place to Worship Initiative,” which focusses on RLUIPA’s provisions that protect the rights of religious institutions to worship on their land. More information is available at: www.justice.gov/crt/placetoworship.

In July 2018, the Department of Justice announced the formation of the Religious Liberty Task Force. The Task Force brings together Department components to coordinate their work on religious liberty litigation and policy, and to implement the Attorney General’s 2017 Religious Liberty Guidance.

Individuals who believe they have been subjected to discrimination in land use or zoning decisions may contact the U.S. Attorney’s Office Civil Rights Hotline at (855) 281-3339 or the Civil Rights Division Housing and Civil Enforcement Section at (800) 896-7743, or on the complaint portal on the Place to Worship Initiative website.

The government is represented by Assistant U.S. Attorney Michael Campion, Chief of the U.S. Attorney’s Office’s Civil Rights Unit, Assistant U.S. Attorney Susan Millenky, Civil Division; and Trial Attorney Noah Sacks, U.S. Department of Justice, Civil Rights Division, Housing and Civil Enforcement Section.

CAMDEN, N.J. – A federal grand jury has returned a 50-count indictment charging seven people with defrauding New Jersey state health benefits programs and other insurers out of more than $50 million by submitting fraudulent claims for medically unnecessary prescriptions, U.S. Attorney Craig Carpenito announced today.

William Hickman, 42, Sara Hickman, 42, Thomas Schallus, 42, Thomas Sher, 46, all of Northfield, New Jersey, Brian Pugh, 41, of Absecon, New Jersey, John Sher, 37, of Margate City, New Jersey, and Christopher Broccoli, 47, of West Deptford, New Jersey, were all charged with conspiracy to commit health care fraud and wire fraud and with individual acts of health care fraud and wire fraud. William and Sara Hickman and Brian Pugh also were charged with conspiracy to commit money laundering and individual acts of money laundering. The defendants are expected to appear later today before U.S. Magistrate Judge Ann Marie Donio in Camden federal court. The case is assigned to U.S. District Judge Robert B. Kugler in Camden.

According to the indictment:

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

From July 2014 through April 2016, the conspirators recruited individuals in New Jersey to obtain very expensive and medically unnecessary compounded medications from a Louisiana pharmacy, identified in the indictment as the “Compounding Pharmacy.” The conspirators learned that certain compound medication prescriptions – including pain, scar, antifungal, and libido creams, as well as vitamin combinations – were reimbursed for thousands of dollars for a one-month supply.

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

The Compounding Pharmacy agreed to pay Boardwalk Medical LLC, a company run by William Hickman and Sara Hickman, a percentage of the amount that the Compounding Pharmacy received for prescriptions obtained by Boardwalk Medical and its associates. The Hickmans then had Pugh and other conspirators recruit individuals who had coverage for compounded medications, and those conspirators found additional recruiters, including Thomas Schallus, John Sher, Thomas Sher, and Christopher Broccoli. 

The conspirators recruited public employees covered by the Pharmacy Benefits Administrator to fraudulently obtain compounded medications from the Compounding Pharmacy without any evaluation or determination by a medical professional that the medications were medically necessary. The defendants paid individuals to agree to receive prescription medications from the Compounding Pharmacy. The defendants completed prescriptions for these individuals and selected the most expensive medications with the highest number of refills to obtain the highest possible insurance reimbursement. The conspirators would have prescriptions signed by a doctor who did not examine the patients. The prescriptions were faxed to the Compounding Pharmacy, which filled the prescriptions and billed the Pharmacy Benefits Administrator. 

William Hickman paid Dr. John Gaffney to reward him for signing prescriptions.  Gaffney previously pleaded guilty to conspiracy to commit health care fraud and admitted taking payments and signing prescriptions for patients he did not see.

After the prescriptions were filled, the Compounding Pharmacy paid Boardwalk Medical a percentage of each prescription filled and paid by the Pharmacy Benefits Administrator. The Pharmacy Benefits Administrator paid Compounding Pharmacy over $50 million for compounded medications, and the Compounding Pharmacy paid William Hickman and Sara Hickman over $26 million for prescriptions obtained by the conspiracy. The Hickmans paid a portion of that amount to Pugh, Schallus, John Sher, Thomas Sher, Christopher Broccoli, and other conspirators.

The health care fraud and wire fraud conspiracy count with which all defendants are charged carries a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gain or loss from the offense. Each wire fraud count carries a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gain or loss from the offense. Each health care fraud count carries a maximum penalty of 10 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. The money laundering conspiracy charge carries a maximum potential penalty of 10 years in prison and a $250,000 fine, or twice the value of the property involved in the transaction. Each charge of monetary transactions in criminally derived property worth more than $10,000 carries a maximum potential penalty of 10 years in prison and a $250,000 fine, or twice the value of the property involved in the transaction.

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

The government is represented by Assistant U.S. Attorneys R. David Walk Jr. and Alyson M. Oswald of the U.S. Attorney’s Office in Camden and Assistant U.S. Attorney Barbara Ward, Senior Trial Counsel of the Asset Recovery and Money Laundering Unit in Newark.

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

NEWARK, N.J. – An Indian national today admitted conspiring to smuggle foreign nationals into the United States via commercial airline flights, U.S. Attorney Craig Carpenito announced.

Bhavin Patel, 38, of India, pleaded guilty to before U.S. District Judge John M. Vazquez to a superseding information charging him with conspiracy to smuggle foreign nationals into the United States for private financial gain.

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

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

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

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

The conspiracy charge carries a maximum potential sentence of 10 years in prison and a fine of up to $250,000. Sentencing is scheduled for July 9, 2019.

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

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

NEWARK, N.J. – An Atlantic City, New Jersey, woman appeared in federal court today on charges including drug distribution that resulted in a death, U.S. Attorney Craig Carpenito announced.

Rajeri Curry, 30, is charged by federal complaint with one count of possession with the intent to distribute heroin and one count of distribution of heroin and fentanyl that resulted in a death. Curry had an initial appearance before U.S. Magistrate Judge James B. Clark III in Newark federal court and was detained without bail.

According to documents filed in this case:

On June 1, 2018, Curry distributed a substance containing heroin and fentanyl to an individual who died as a result of using the substance. Law enforcement found the deceased victim inside a vehicle in the parking lot of an Atlantic City, New Jersey, restaurant. Inside the victim’s vehicle were multiple wax folds that contained heroin and fentanyl and were stamped with the words “BODY COUNT.” Shortly before the victim’s death, surveillance footage captured Curry distributing narcotics to the 30-year-old victim. 

Curry is also charged with possession with intent to distribute heroin arising from the execution of a search warrant at her residence. 

U.S. Attorney Carpenito credited special agents of the DEA’s Newark Office, under the direction of Special Agent in Charge Susan A. Gibson, officers from the Atlantic City Police Department, under the direction of Chief Henry M. White Jr., and the Atlantic County Prosecutor’s Office, under the direction of Damon G. Tyner, with the investigation leading to the charges.

The drug distribution resulting in death charge carries a maximum punishment of life in prison and a fine of $1 million. 

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

The government is represented by Assistant U.S. Attorneys Catherine R. Murphy and Heather Suchorsky of the U.S. Attorney’s Office Criminal Division in Newark.

TRENTON, N.J. – An Allentown, Pennsylvania, woman was indicted today on additional charges stemming from her scheme to defraud the government, U.S. Attorney Craig Carpenito announced.

Martha Aguilar, 57, formerly of Middletown, New Jersey, was charged by indictment in August 2018 with theft of government funds, Social Security fraud, and making false statements in furtherance of Social Security fraud. Today’s superseding indictment adds three counts of healthcare fraud relating to Aguilar's scheme to also defraud Medicare and steal $644,605 in benefits she was not entitled to receive.

According to the superseding indictment:

From November 2004 to September 2016, Aguilar allegedly collected $136,879 in Social Security benefits and $644,605 in Medicare benefits that she was not entitled to receive. Aguilar indicated on forms to the Social Security Administration (SSA) that she was completely disabled and unable to work. However, while she was collecting Social Security and Medicare benefits, Aguilar concealed her employment as a paralegal.

Aguilar also fraudulently applied for and received temporary disability from the State of New Jersey totaling $13,622, and unemployment benefits from the State of New Jersey totaling $103,738, which she concealed from the SSA. In all, Aguilar failed to report to SSA $488,870 in benefits and income.

If convicted, Aguilar faces a maximum sentence of 30 years in prison and a total fine of $750,000.

U.S. Attorney Carpenito credited special agents of the Office of the Inspector General, Social Security Administration, under the direction of Special Agent in Charge John F. Grasso; Debbi Mayer, Assistant Special Agent in Charge of the U.S. Department of Education, Office of Inspector General, Eastern Region; and N.J. Department of Labor & Workforce Development, Division of Fraud Prevention & Risk Management-Special Investigations Unit, with the investigation leading to todays indictment.

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

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

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

NEWARK, N.J. – A Hunterdon County, New Jersey, man was arrested by federal agents today for allegedly distributing images of child sexual abuse, U.S. Attorney Craig Carpenito announced.

Mark Miller, 61, of Bloomsbury, New Jersey, is charged by criminal complaint with one count of distributing child pornography. He was arrested in his home by agents of the Department of Homeland Security, Homeland Security Investigations (HSI). He had his initial appearance today before U.S. Magistrate Court Judge James B. Clark III in Newark federal court and was detained without bail.   

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

Miller used a mobile application to distribute files containing images and videos of child pornography, including images of prepubescent children.

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

U.S. Attorney Craig Carpenito credited special agents of Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Brian A. Michael, with the investigation leading to today’s charge and arrest. He also thanked the Hunterdon County Prosecutor’s Office and N.J. State Police for their assistance.

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

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

NEWARK, N.J. – The trustee of a pension fund has been indicted for embezzling from an employee benefits plan and failing to file annual reports for the plan, U.S. Attorney Craig Carpenito announced today.

Howard Preschel, 62, of Teaneck, New Jersey, is charged by indictment with 10 counts of embezzlement from an employee benefit plan and three counts of failure to file an annual report. He surrendered on March 12, 2019, and made his initial appearance before U.S. Magistrate Judge James C. Clark III. Preschel was released on $100,000 unsecured bond.

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

Preschel served as a trustee for the CMG Vending Inc. Pension Trust Fund. CMG Vending operated, leased, and rented vending machines throughout New Jersey and New York. Preschel, by law, was a fiduciary and therefore required to act solely in the interest of the participants and beneficiaries. From at least October 2013, Preschel embezzled $186,123 from company’s pension trust fund.

Preschel was also required to publish and file annual reports with the Secretary of Labor. In order to conceal the ongoing embezzlement, Preschel failed to inform the participants and beneficiaries that insufficient funds were being forwarded to the pension trust and failed to file required annual reports for the plan.

The embezzlement charges each carry a maximum penalty of five years in prison and a fine of up $250,000. The failure to file an annual report charges each carry a maximum penalty of 10 years in prison and a fine of up to $100,000.

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

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

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

NEWARK, N.J. – A Union County man was arrested today on a charge of distributing images of child sexual abuse, U.S. Attorney Craig Carpenito announced.

Jeffrey Shreve, 35, of Scotch Plains, New Jersey, was arrested at his home by agents of the Department of Homeland Security, Homeland Security Investigations (HSI). He is charged by complaint with one count of distributing child pornography. Shreve made his initial appearance today before U.S. Magistrate Judge James B. Clark III in Newark federal court and was released on $100,000 unsecured bond. 

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

Shreve used peer-to-peer file sharing software to seek and obtain images of child sexual abuse, including images of prepubescent children.

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

U.S. Attorney Carpenito credited special agents of HSI, under the direction of Special Agent in Charge Brian Michael, with the investigation leading to today’s charges.

The government is represented by Counsel to the U.S. Attorney Caroline Sadlowski of the U.S. Attorney’s Office in Newark.

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

District of New Jersey sees Increase in Prosecutions of both Violent and White Collar Crime

NEWARK, N.J. – One year after U.S. Attorney Craig Carpenito reorganized the structure of the U.S. Attorney’s Office for the District of New Jersey, overall criminal prosecutions have increased 51 percent, including a 65 percent jump in violent crime prosecutions, a 39 percent jump in narcotics related prosecutions, and a 15 percent jump in white collar crime prosecutions.

U.S. Attorney Carpenito’s goal in restructuring the office was to focus on areas of criminal and civil enforcement that would pay the biggest dividends in protecting New Jersey’s citizens. To that end, he established three new units in the Criminal Division (the Opioids, Violent Crime, and Cyber Units), increased the number of prosecutors by approximately 25 percent, doubled the size of the office’s paralegal corps, and implemented an “eLitigation” program to improve the way the office receives and processes information. One year later, the results of these improvements have been felt across the state of New Jersey.

“Over the past year, we have focused our efforts in gun and drug cases to target the most violent offenders,” U.S. Attorney Carpenito said. “The results have been very encouraging. Both Newark and Camden, for example, have seen significant drops in their respective crime rates, year-over-year, and both are at their lowest crime rates in 50 years. But statistics only tell part of the story. These results also have a positive impact on the lives of the people who live here.”

“The New Jersey U.S. Attorney’s Office’s responsiveness and flexibility in dealing with a shifting threat picture is a true model for progressive prevention,” FBI Special Agent in Charge Gregory W. Ehrie said. “The reorganization of critical assets has greatly increased prosecutorial efficiency, allowing New Jersey local, state, and federal law enforcement agencies to more effectively combat criminal and national security challenges. This is yet another example of the outstanding partnership U.S. Attorney Carpenito and his office have continually displayed.”

“U.S. Attorney Carpenito’s new vision for his office is bringing great results,” Susan A. Gibson, Special Agent in Charge of the Drug Enforcement Administration’s New Jersey Division, said. “His formation of the Opioid Abuse Prevention and Enforcement Unit sends a clear message that his office will prosecute those who choose to poison our communities with these very dangerous drugs. It is very reassuring for the men and women of DEA’s New Jersey Division to know the U.S. Attorney fully supports their investigations.”

“The safety and well-being of our citizens is a vital part of our mission,” ATF Newark Field Division Acting Special Agent in Charge Christopher Taylor said. “ATF, in partnership with the United States Attorney’s Office and our other federal, state and local law enforcement partners, will continue to focus our investigative resources on arresting and prosecuting the most violent criminals who use firearms to terrorize our communities and on those individuals who supply firearms to this criminal element. Protecting our neighborhoods from violent crime is a priority for the citizens of New Jersey and ATF.”

In the fiscal year that ended Sept. 30, 2017, the U.S. Attorney’s Office charged 467 defendants by indictment or information. By contrast, in the one year since U.S. Attorney Carpenito’s reorganization, the U.S. Attorney’s Office charged 707 defendants by indictment or information, an increase of 51 percent.

The U.S. Attorney’s Office leads “Violent Crime Initiatives,” partnerships among federal, state and local law enforcement, in two major areas in New Jersey, Newark and Jersey City. (A similar model, known as “C-4,” has been active in Camden for several years.) The VCIs collect information from more than a dozen law enforcement agencies, identify and prioritize the offenders posing the highest threats to public safety, and coordinate responses to those threats. Through the VCIs, the U.S. Attorney’s Office spearheads targeted investigations into individuals and organizations responsible for significant violent activity.

In October 2018, the U.S. Attorney’s Office announced two significant takedowns of violent drug gangs. On Oct. 11, the office charged 17 members, associates, and drug suppliers of the Famous Boyz – a subset of the Brick City Brims set of the Bloods street gang – which dealt significant quantities of heroin and crack cocaine in Newark and possessed and used firearms in furtherance of the gang’s drug trafficking activities. And on Oct. 25, the office charged 27 individuals who used violence as part of a conspiracy to distribute significant quantities of heroin and other narcotics in Trenton, and whose members possessed numerous firearms in furtherance of the gang’s activities.

The program has already shown success:

• Crime is down 15 percent in Newark from 2017 to 2018.
• Shooting incidents are down 30 percent in Newark between 2017 and 2018, and down another 39 percent between comparable periods in 2018 and 2019.
• The office has taken more than 100 new cases arising from Newark since the reorganization.
• The VCI program has recently started in Jersey City, and shooting incidents are down 69 percent in Jersey City between comparable periods in 2018 and 2019.
• Violent crime was down 18 percent in Camden from 2017 to 2018.

“The remarkable progress we’ve had in Camden is built on many things,” Chief Thomson said. “Its foundation is establishing trust with the community, but also trust among local, state and federal law enforcement partners. We have that kind of trust with the U.S. Attorney’s Office in New Jersey, and U.S. Attorney Carpenito has worked hard to provide his Camden office with the people and resources needed to be valuable contributors to the law enforcement team we’ve assembled here.”

“One of the advantages of the reorganization of the U.S. Attorney’s Office is the targeting of resources on the mission of reducing violent crime,” Public Safety Director Anthony Ambrose said. “In 2018 the U.S. Attorney’s office handled over 120 cases that specifically helped Newark, resulting in more than 100 fewer shooting victims compared to 2017 and a 35 percent reduction in robberies.”

“Violent crime, specifically related to shootings and gun offenses, has been priority number one for the Jersey City Police Department, along with its essential partner, the Hudson County Prosecutor,” Jersey City Police Chief Michael J. Kelly said. “Now, with the ‘Violent Crime Initiative’ and the Office of U.S. Attorney Craig Carpenito fully engaged, Jersey City is about to become even safer. Partnership with the U.S. Attorney’s Office is a major win for all our neighborhoods in Jersey City and bad news for those that perpetuate violence in our community.”

Along with the renewed focus on violent criminal offenders, the U.S. Attorney’s Office has continued to pursue and prosecute white collar criminals, with the number of those defendants charged by information or indictment up 15 percent in the year since the reorganization was announced. In 2019 alone, the U.S. Attorney’s Office has announced charges in several significant white collar cases, including:

• The Jan. 15, 2019, unsealing of a significant indictment charging two Ukrainian men for their roles in a large-scale, international conspiracy to hack into the Securities and Exchange Commission’s (SEC) computer systems and profit by trading on critical information they stole.
• The Feb. 13, 2019, complaint charging Gene Levoff, a former senior attorney at a global technology company, with insider trading.
• The Feb. 14, 2019, indictment charging the former President and former General Counsel of Cognizant, a Fortune 500 company, with FCPA violations for allegedly bribing officials in India.

“I could not be prouder of the way this office and our federal, state and local law enforcement partners have worked to implement these changes, or the results we have achieved so far,” U.S. Attorney Carpenito said. “It’s because we are a team, no one person or entity more important to the mission than any other, that we succeed. But challenges remain and we must remain vigilant if we hope to build on our success. As the current caretaker of this office, I’m proud to have the opportunity to continue the outstanding traditions of this place and law enforcement in New Jersey.”

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

Todd Walsh, 41, of Hoboken, New Jersey, pleaded guilty before U.S. District Judge John Michael Vazquez in Newark federal court to an information charging him with one count of distributing child pornography.

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

From September 2016 through November 2017, undercover officers accessed an Internet-based video conferencing application and observed that a user, identified as Walsh, used the application to display images of child sexual abuse, including images of prepubescent children, to other users of the application.

The count of distributing child pornography to which Walsh pleaded guilty carries a mandatory minimum sentence of five years in prison, a maximum potential penalty of 20 years in prison, and a $250,000 fine. Sentencing is scheduled for June 25, 2019.

U.S. Attorney Craig Carpenito credited special agents of U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI), under the direction of Special Agent in Charge Brian Michael, with the investigation leading to today’s guilty plea. He also thanked the Hudson County Prosecutor’s Office and the Hoboken Police Department for their work on this case.

The government is represented by Assistant U.S. Attorney Ailyn Abin of the U.S. Attorney’s Office in Newark.

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