District of New Jersey

NEWARK – Two Union County, New Jersey, tax preparers today admitted their respective roles in conspiring to defraud the IRS, filing false personal tax returns, and witness tampering, U.S. Attorney Craig Carpenito announced.

Samuel Davis Jr., 52, of Plainfield, New Jersey, pleaded guilty before U.S. District Judge Susan D. Wigenton in Newark federal court to one count of conspiring to defraud the IRS by aiding and abetting the filing of false tax returns, one count of filing false personal tax returns, and one count of witness tampering. Kyna Felder-Ruiz, 35, also of Plainfield, pleaded guilty to one count of conspiring to defraud the IRS by aiding and abetting the filing of false tax returns.

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

Davis was the owner and operator of Get Organized Tax & Accounting (GOTA), a tax preparation business in Plainfield. Davis retired as a detective sergeant from the N.J. State Police in 2016 after 28 years. Felder-Ruiz, who was employed by the N.J. State Police as a public safety dispatcher for approximately two years, was employed as a tax preparer at GOTA. For tax years 2011 to 2016, Davis and Felder-Ruiz prepared false individual income tax returns for various GOTA clients. They used a number of fraudulent practices, including falsely claiming deductions and fabricating educational credits in order to obtain refunds for their clients in amounts substantially greater than those to which the taxpayers were entitled.

For tax years 2012 through 2014, Davis filed false personal income tax returns by underreporting business income that he derived from GOTA. By doing so, Davis defrauded the IRS of tens of thousands of dollars in taxes. He also admitted that in October 2018 he became aware that his son had received a subpoena to appear before a grand jury. Davis admitted attempting to persuade his son to provide false testimony to the grand jury.

The tax fraud conspiracy charge to which Davis and Felder-Ruiz pleaded guilty carries a maximum potential penalty of five years in prison and a $250,000 fine. The witness tampering charge to which Davis pleaded guilty carries a maximum penalty of 20 years in prison and a $250,000 fine. Sentencing both defendants is scheduled for June 11, 2019.

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

The government is represented by Assistant U.S. Attorney Ryan L. O’Neill of the U.S. Attorney’s Office’s Public Protection Unit.

Defense counsel: Davis: Thomas Ashley Esq., Newark
Felder-Ruiz: Anthony Iacullo Esq., Nutley, New Jersey

CAMDEN, N.J. – A Salem County, New Jersey, man with a previous felony record was sentenced today to 96 months in prison for illegally possessing guns and selling guns without a license, U.S. Attorney Craig Carpenito announced.

Corey Moore, 33, of Salem, previously pleaded guilty before U.S. District Judge Noel L. Hillman to two counts of an indictment charging him with dealing in firearms without a license and unlawfully possessing firearms after having been convicted of a felony offense. Judge Hillman imposed the sentence today in Camden federal court.

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

From July 20, 2016, through Dec. 20, 2016, Moore sold firearms. On Oct. 24, 2016, Moore sold two loaded firearms – an Intratec, Model AB10, 9 millimeter Luger pistol, and a Smith & Wesson, Model 642 (marked LadySmith), .38 caliber revolver – to a man who was a confidential informant working with federal law enforcement officers. Moore, who did not have a license, sold the firearms to the informant at a convenience store in Logan Township, New Jersey. He also unlawfully possessed two additional loaded firearms: an Iberia Firearms Inc. (Hi-Point), Model JCP, .40 caliber pistol, and a Ruger, Model Security-Six, .357 magnum caliber revolver. Both of those firearms were fully operable and had been transported in interstate commerce prior to Moore’s possession of them.

In addition to the prison term, Judge Hillman sentenced Moore to X years of supervised release.

U.S. Attorney Carpenito credited special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Newark Field Division, under the direction of Acting Special Agent in Charge Christopher Taylor, with the investigation with the investigation leading to today’s sentencing.

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

CAMDEN, N.J. - A Dominican Republic national today admitted his role in a conspiracy to commit identity theft, U.S. Attorney Craig Carpenito announced.

Daury Cordero, 31, a citizen of the Dominican Republic with addresses in Camden, New Jersey, and Philadelphia, pleaded guilty before U.S. District Judge Noel L. Hillman to an indictment charging him with one count of conspiracy and one count of unlawful transfer, possession or use of a means of identification. A federal grand jury in Camden returned the sealed indictment Sept. 19, 2018.

IRS Criminal Investigation Special Agents located Cordero in the custody of Immigration and Customs Enforcement.

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

In January 2016, one of Cordero’s accomplices, Cesar Abreu, was cleaning an office building in Cherry Hill, New Jersey. Abreu stole a list titled: “Town of Uxbridge,” which contained names, Social Security numbers, and dates of birth for 62 people. Cordero enlisted another individual, Pedro Santana, to find someone who would use the list of names to create and file fraudulent federal income tax returns. Eventually, Cordero and Santana found a buyer – who was, in fact, an undercover IRS agent – and sold him the list for $2,500.

Abreu pleaded guilty in December 2017 and was sentenced in October 2018 to three years of probation. Santana pleaded guilty in August 2015 and was sentenced in March 2017 to three years of probation and ordered to pay $4.6 million in restitution.

The count of conspiracy and the count of transferring a means of identification to which Daury Cordero pleaded guilty each carry a maximum potential penalty of five years in prison and a $250,000 fine. Sentencing is scheduled for June 28, 2019.

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

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

Defense counsel: Rocco Cipparone Jr. Esq. Haddon Heights, New Jersey

NEWARK, N.J. – Two Passaic County, New Jersey, men are charged in connection with the seizure of more than 20 kilograms of cocaine, U.S. Attorney Craig Carpenito announced today.

Carlos Nieves, 24, and Yocadis Montas-Cepeda, 24, both of Paterson, New Jersey, were arrested in Bergen County, New Jersey, on Nov. 19, 2018. They are charged by complaint with one count each of conspiracy to distribute more than five kilograms of cocaine. Nieves is scheduled to appear later today before U.S. Magistrate Judge Joseph A. Dickson in Newark federal court. Montas-Cepeda is expected to make his initial appearance at a later date.

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

Nieves was driving a car that was the subject of a motor vehicle stop on Interstate 80. Montas-Cepeda was a passenger in the car. The defendants’ statements and other suspicious activities caused law enforcement to believe that the vehicle was being used to traffic narcotics. After receiving consent to search the vehicle, law enforcement officers recovered approximately 20 kilograms of cocaine from the interior.

The count of conspiracy to distribute more than five kilograms of cocaine carries a mandatory minimum sentence of 10 years in prison, a maximum of life in prison, and a maximum fine of $10 million.

U.S. Attorney Craig Carpenito credited special agents of the U.S. Drug Enforcement Administration, under the direction of Special Agent in Charge Susan A. Gibson, New Jersey Division, with the investigation leading to today’s charges. He also thanked the Bergen County Prosecutor’s Office and that office’s Narcotics Task Force.

The government is represented by Assistant U.S. Attorney Ryan L. O’Neill of the U.S. Attorney’s Office Criminal Division in Newark.

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

Defense counsel:

Nieves: Lauriano Guzman Esq., Bronx, New York
Montas-Cepeda: Victor Molina Esq., Bergenfield, New Jersey

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

Donte Ellis, a/k/a “Shalant,” 41, pleaded guilty today before U.S. District Judge Freda L. Wolfson in Trenton federal court to an information charging him with one count of conspiracy to distribute and possess with intent to distribute 100 grams or more of heroin. Ellis also admitted to possessing a firearm during the offense.

In October 2018, Ellis and 25 other members of a drug trafficking conspiracy operating in Trenton were charged by criminal complaint with conspiracy to distribute heroin. Ellis is the first of the defendants to plead guilty. On Feb. 21, 2019, a grand jury returned a two-count indictment charging four defendants, Jakir Taylor, a/k/a “Jak”; Jerome Roberts, a/k/a “Righteous”; David Antonio, a/k/a “Papi,” a/k/a “Victor Arias”; and Wayne K. Bush, with conspiracy to distribute one kilogram or more of heroin. Taylor also was charged in the indictment with possessing of a firearm in furtherance of a drug trafficking crime. The charges in the criminal complaint remain pending against the other 20 defendants.

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

From as early as October 2017 to October 2018, the defendants and others engaged in a narcotics conspiracy that operated in the areas of Martin Luther King Boulevard, Sanford Street, Middle Rose Street, Southard Street, Hoffman Avenue, and Coolidge Avenue in Trenton, and which sought to profit from the distribution of heroin and numerous other controlled substances. Through the interception of telephone calls and text messages pursuant to court-authorized wiretap orders, controlled purchases of heroin, the use of confidential sources of information, and other investigative techniques, law enforcement learned that defendants Jakir Taylor and Jerome Roberts obtained regular supplies of hundreds of “bricks” of heroin from defendant David Antonio, whom they referred to as “Papi.” The investigation revealed that in September and October 2018, Ellis—who had been released from state prison in August 2018 for a prior conviction for conspiracy to commit first-degree murder—obtained large quantities of heroin on multiple occasions from Jakir Taylor, which he redistributed to others in and around Trenton. The investigation also revealed that, on several occasions when he obtained supplies of heroin from Taylor, he also obtained a firearm from Taylor for protection in re-distributing the narcotics.

The drug conspiracy count to which Ellis pleaded guilty carries a statutory mandatory minimum term of five years in prison, a maximum potential penalty of 40 years in prison, and a maximum fine of $5 million. Sentencing is scheduled for June 13, 2019.

U.S. Attorney Carpenito credited special agents of the FBI, Newark Division, Trenton Resident Agency, under the direction of Special Agent in Charge Gregory W. Ehrie; special agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Newark Division, Trenton Satellite Office, under the direction of Acting Special Agent in Charge Christopher Taylor; officers of the Trenton Police Department, under the direction of Acting Police Director Pedro Medina; officers of the Princeton Police Department, under the direction of Chief of Police Nicholas Sutter; officers of the Ewing Police Department, under the direction of Chief of Police John P. Stemler III; officers of the Burlington Township Police Department, under the direction of Police Director Bruce Painter; and detectives of the Burlington County Prosecutor’s Office, under the  direction of Prosecutor Scott A. Coffina, with the investigation leading to today’s charges. He also thanked officers of the New Jersey State Police, under the direction of Superintendent Col. Patrick J. Callahan; detectives of the Mercer County Prosecutor’s Office, under the direction of Prosecutor Angelo Onofri; officers of the Mercer County Sheriff’s Office, under the direction of Sheriff John A. Kemler; and members of the New Jersey State Board of Parole for their assistance in the case, including with today’s coordinated takedown.

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

This case was conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF) and the FBI’s Greater Trenton Safe Streets Task Force, a partnership between federal, state and local law enforcement agencies to enhance the identification, apprehension, and prosecution of individuals involved in gang-related activities, violent crime, and drug distribution in and around the greater Trenton area. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking, and money laundering organizations and those primarily responsible for the nation’s illegal drug supply.

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

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

Jhan Carlos Capellan Maldonado, 30, Jose Antonio Vasquez Pena a/k/a “Tono,” 46, and Dilson Vasquez Genao, 22, all of Bronx, are charged by complaint with one count of conspiracy to possess with intent to distribute approximately 100 grams of more of suspected heroin and fentanyl. Maldonado appeared March 6, 2019, before U.S. Magistrate Judge Joseph A. Dickson, and was detained. Pena and Genao appeared last week before U.S. Magistrate Judge Michael A. Hammer and were detained.

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 Bronx to store, mix, and package heroin and fentanyl in distribution quantities. Pena lived at the apartment in order to safeguard the narcotics and narcotics supplies. Maldonado employed approximately five workers at a time to assist in preparing the heroin and fentanyl for distribution, which Maldonado then distributed to customers in New Jersey.

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

Genoa went back inside the building and was followed by law enforcement office3rs, 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 several individuals inside, including Maldonado, Pena, and Genao. The three defendants attempted to escape out a window in the bedroom but 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.

Defense counsel: Maldonado: Kathleen Theurer Platts Esq., Jersey City, New Jersey
Pena: Peter Carter Esq., Assistant Public Defender, Newark
Genao: Edward Kratt Esq., New York

NEWARK, N.J. – An Essex County, New Jersey, man was sentenced today to 50 months in prison for his role in a conspiracy to defraud New Jersey state benefit programs, , U.S. Attorney Craig Carpenito announced.

Brian Catanzarite, 43, a former gym owner from Cedar Grove, New Jersey, previously pleaded guilty before U.S. District Judge John Michael Vazquez to an information charging him with one count of healthcare fraud. Judge Vazquez imposed the sentence today in Newark federal court.

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

Catanzarite admitted that from March 2015 through January 2017, he conspired to defraud New Jersey state benefit programs. Catanzarite was recruited by one of his former gym members to become a sales representative of a company that marketed compounded medications. The marketing company received a percentage of every prescription that its sales representatives steered toward a particular compounding pharmacy.

To maximize his profit, Catanzarite convinced state beneficiaries to obtain compounded medications regardless of their medical necessity. On several occasions, Catanzarite even paid an advanced nurse practitioner, introduced to him by the marketing company, or used a telemedicine service that was paid for by the marketing company, to fraudulently obtain compounded medication prescriptions. Catanzarite caused losses of at least $3.5 million and personally made over $1.1 million from the scheme.

In addition to the prison term, Judge Vazquez sentenced Catanzarite to three years of supervised release and ordered restitution of $3.5 million.

U.S. Attorney Carpenito credited special agents of the FBI Newark Field Office, under the direction of Special Agent in Charge Ehrie; and the U.S. Department of Defense, Defense Criminal Investigative Service, under the direction of Special Agent in Charge Leigh-Alistair Barzey of the DCIS Northeast Field Office, with the investigation leading to today’s sentencing.

The government is represented in these cases by Assistant U.S. Attorney Erica Liu, Chief of the U.S. Attorney's Office Opioid Abuse Prevention and Enforcement Unit in Newark.

NEWARK, N.J. – An Essex County, New Jersey, man was sentenced today to 18 months in prison for his role in a food stamps fraud scheme, U.S. Attorney Craig Carpenito announced.

Manuel Venegas, 54, of Newark, previously pleaded guilty before U.S. District Judge John Michael Vazquez to an information charging him with one count of Supplemental Nutrition Assistance Program (SNAP) benefit fraud. Judge Vazquez imposed the sentence today in Newark federal court.

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

From March 2015 to March 2018, Venegas was an employee of Jenny’s Deli, a small grocery store in Newark, New Jersey. Venegas’ daughter, Maria Teresa Venegas, was the listed owner of Jenny’s Deli and pleaded guilty to the same crime in September 2018. She was sentenced Feb. 20, 2019, to two years in prison.

Jenny’s Deli 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.  According to the charges against them, Maria Teresa Venegas and Manuel Venegas exchanged more than $885,000 in SNAP benefits for cash between 2011 and 2018.

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.

In addition to the high volume of SNAP benefits redemptions for Jenny’s Deli, indicating fraud, law enforcement agents verified the fraudulent exchange of SNAP benefits for cash through the use of an undercover law enforcement agent who engaged in approximately 20 “purchases” at Jenny’s Deli where Manuel Venegas, Maria Theresa Venegas, or another Jenny’s Deli employee acting at their direction exchanged money for SNAP benefits.

In addition to the prison term, Judge Vazquez sentenced Manuel Venegas to two years of supervised release and ordered restitution of $573,199.

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, with the investigation leading to today’s sentencing.

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

CAMDEN, N.J. - A Bordentown, New Jersey, woman and a Philadelphia man today admitted their respective roles in a GoFundMe scam that gained nationwide attention, U.S. Attorney Craig Carpenito announced.

Katelyn McClure, 28, pleaded guilty before U.S. District Judge Jerome B. Simandle in Camden federal court to an information charging her with one count of conspiracy to commit wire fraud. Johnny Bobbitt, 36, pleaded guilty to an information charging him with one count of conspiracy to commit money laundering.

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

In November 2017, McClure and Mark D’Amico allegedly created a crowd-source funding page on GoFundMe’s website titled “Paying It Forward.” The campaign solicited donations from the public purportedly for the benefit of a homeless veteran, Bobbitt. McClure and D’Amico posted a story that McClure was driving home from Philadelphia on Interstate 95 and ran out of gas. Bobbitt acted as a “good Samaritan” and rescued McClure by using his last $20 to buy gasoline for her. The website stated that funds were being solicited to get Bobbitt off the streets and provide him with living expenses, setting a goal of $10,000.

In reality, McClure never ran out of gas and Bobbitt never spent his last $20 for her. D’Amico and McClure allegedly conspired to create the false story to obtain money from donors. The story was quickly picked up by local and national media outlets and went viral and raised approximately $400,000 from more than 14,000 donors in less than three weeks.

The donated funds were transferred by D’Amico and McClure from GoFundMe into accounts that they controlled. The majority of the money allegedly was quickly spent by D’Amico and McClure on personal expenses over the next three months, including significant amounts on D’Amico’s gambling, vacations, a BMW automobile, clothing, expensive handbags and other personal items and expenses.

In mid-November of 2017, when the donations had reached approximately $1,500, D’Amico and McClure told Bobbitt about the campaign and the false gas story. In December of 2017, after setting up a bank account for Bobbitt, D’Amico and McClure deposited $25,000 of proceeds of the scheme into Bobbitt’s account.

The count of wire fraud conspiracy to which McClure pleaded guilty carries a maximum potential penalty of 20 years in prison and a $250,000 fine. Sentencing is scheduled for June 19, 2019.

The count of conspiracy to commit money laundering to which Bobbitt pleaded guilty carries a maximum penalty of 10 years in prison and a fine of $250,000. Sentencing will be scheduled at a later date.

U.S. Attorney Carpenito credited assistant prosecutors and detectives of the Burlington County Prosecutor’s Office, under the direction of Prosecutor Scott Coffina; officers of the Florence Township Police Department; special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge John R. Tafur; 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 pleas.

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

Defense counsel: McClure: James J. Gerrow Jr. Esq., Hainesport, New Jersey
Bobbitt: Lori Koch Esq., Assistant Federal Public Defender, Camden

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

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

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

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

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

The count of distributing child pornography carries a mandatory minimum sentence of five years in prison, a maximum potential penalty of 20 years in prison, and a $250,000 fine. Sentencing is scheduled for June 6, 2019.

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

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

NEWARK – A licensed pharmacist from Monmouth County, New Jersey, today admitted cashing millions of dollars’ worth of his pharmacy’s checks to evade the payment of income taxes, U.S. Attorney Craig Carpenito announced.

Ajay Barthwal, 43, of Morganville, New Jersey, pleaded guilty before U.S. District Judge William J. Martini in Newark federal court to an information charging him with conspiracy to commit tax evasion in connection with income he received from Old Bridge Drugs & Surgicals (OBDS), a retail pharmacy in Old Bridge, New Jersey, during calendar years 2009 through 2011, that he failed to report on the income tax returns he filed for those years.

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

Barthwal and his wife claimed to be each 50 percent owners of OBDS. However, Barthwal was actually a one-third owner in OBDS, and two other individuals, Dilip Naik and Bhavesh Mistry, both of whom have previously pleaded guilty to related tax crimes, were each one-third owners and “silent partners.”

As a partnership, OBDS was required to file an IRS Form 1065 U.S. Partnership Income Tax Return. Income received by the business would flow through to the individual partners’ Individual Income Tax Return, IRS Forms 1040. As owners of OBDS, Barthwal, Naik and Mistry each were responsible for accurately reporting to the IRS their business income and respective personal incomes.

Barthwal admitted that from at least Jan. 1, 2009, through Nov. 5, 2012, he, Naik and Mistry all agreed to evade paying income taxes. He admitted that he, Naik and Mistry agreed to hide taxable revenue of $9,343,234, which OBDS had received, by submitting to the IRS tax returns that substantially under-reported the gross receipts of OBDS for calendar years 2009 through 2011.

Beginning in January 2009, Barthwal and Naik caused business receipts from OBDS to be cashed at a check cashier located in Jersey City, New Jersey. Barthwal then deposited only a portion of the OBDS business receipts into the OBDS operating account, and Barthwal, Naik and Mistry each received approximately one-third of the proceeds of the OBDS business receipts that were not deposited into the operating account.

In early 2009, Barthwal, Naik and Mistry agreed to hide the undeposited gross cash receipts from OBDS from the IRS. Barthwal admitted that he, Naik and Mistry failed to pay $4,114,102 in taxes that would have been due and owing to the IRS.
The count of conspiracy to commit tax evasion is punishable by a maximum of five years in prison and a fine of $250,000, or twice the gross gain or loss caused by the offense, whichever is greater. Sentencing is scheduled for July 7, 2019.

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

The government is represented by Assistant U.S. Attorney Deborah J. Gannett of the Asset Recovery and Money Laundering Unit in Newark.

Defense counsel: Frank Agostino Esq., Hackensack, New Jersey

NEWARK, N.J. – Two men who are charged based on the seizure of more than 20 kilograms of fentanyl made their initial court appearances in Newark federal court today, U.S. Attorney Craig Carpenito announced.

Luis Aponte, 48, of Hesperia, California, and Denny Diaz, 29, of Philadelphia, Pennsylvania, were charged by complaint with one count conspiracy to possess with intent to distribute 400 grams or more of fentanyl. They appeared before U.S. Magistrate Judge Joseph Dickson in Newark federal court. The defendants were detained without bail.

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

Aponte allegedly drove a truck to a rest stop in Bloomsbury, New Jersey, on March 1, 2019. The next day, he and Diaz met in a car and, once inside, Aponte gave Diaz approximately seven kilograms of fentanyl. Agents of the Drug Enforcement Administration (DEA) arrested the two men and searched Aponte’s truck. They found an additional 13 kilograms of fentanyl and five kilograms of heroin inside. 

The count with which the defendants are charged carries a mandatory minimum sentence of 10 years in prison, a maximum of life in prison and a fine of up to $10 million. 

This case is being investigated by the DEA’s New York Drug Enforcement Task Force, comprising agents and officers of the DEA, New York City Police Department and New York State Police. U.S. Attorney Craig Carpenito credited special agents of the DEA, under the direction of Special Agent in Charge Ray Donovan, New York Division; New York City Police Commissioner James P. O’Neill; and N.Y. State Police Acting Superintendent Keith M. Corlett with the investigation leading to the arrests.

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

CAMDEN, N.J. – A Social Security Administration employee today admitted unlawfully accessing the Social Security accounts of individuals and falsifying their records in order to steal funds for his own use, U.S. Attorney Craig Carpenito announced.

Nicholas Pao, 37, of Egg Harbor Township, New Jersey, pleaded guilty before U.S. District Judge Joseph H. Rodriguez in Camden federal court to an information charging him with one count of theft of government funds and two counts of aggravated identity theft.

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

Pao was a 10-year employee of the Social Security Administration who worked as a claims technical expert in the Social Security Administration’s office in Egg Harbor Township. Pao was responsible for determining eligibility and payment amounts, processing difficult cases, assisting in case reviews, and making special payment approvals. From December 2014 to July 2018, Pao used his credentials to access the confidential records of several individuals without their knowledge or authority. He altered their records and made fraudulent changes that caused the Social Security Administration to issue benefits to these individuals. Pao would then intercept these benefits, which were issued by way of a Direct Express account and credit card. Pao depleted the funds issued on the Direct Express accounts without the knowledge or consent of the individuals. Pao stole approximately $100,000 in Social Security funds.

The count of theft of government funds is punishable by a maximum potential penalty of 10 years in prison. The aggravated identity theft counts are punishable by a mandatory prison sentence of two years that must be served consecutively to any term of imprisonment imposed for the violation of theft of government funds. Each of the counts is also punishable by a fine of up to $250,000, or twice the gain or loss caused by the offense, whichever is greatest. Sentencing is scheduled for June 12, 2019.

If anyone in the public believes that they might have been the victim of Nicholas Pao's Social Security fraud scheme, they are advised to call the Office of the Inspector General at 888-487-9917.

U.S. Attorney Carpenito credited special agents of the Office of the Inspector General, Social Security Administration, under the direction of John F. Grasso with the investigation leading to today’s guilty plea.

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

Defense counsel: Thomas Young Esq., Assistant Federal Public Defender, Camden

NEWARK, N.J. – A member of the New Jersey set of the Grape Street Crips was sentenced today to 19 years in federal prison for his participation in a racketeering conspiracy that involved using other gang members to intimidate a witness during a state criminal trial, as well as conspiracies to distribute heroin and crack-cocaine, U.S. Attorney Craig Carpenito announced. 

Ahmed Singleton, a/k/a “Gangsta-Moo,” a/k/a “Gangsta,” a/k/a “Mooshie,” 29, previously pleaded guilty before U.S. District Judge Madeline Cox Arleo to three counts in the sixth superseding indictment charging him with RICO conspiracy and separate conspiracies to distribute one kilogram of heroin and 280 grams or more of crack-cocaine. Judge Arleo imposed the sentence today in Newark federal court.

Singleton was charged in November 2016 in a 22-count indictment charging 14 members and associates with, among other things, seven murders, numerous attempted murders, and numerous other violent and drug trafficking crimes committed as part of the racketeering conspiracy. The gang’s leader, Corey Hamlet, a/k/a “C-Blaze,” a/k/a “Blaze,” a/k/a “Blizzie,” a/k/a “Castor Troy,” 41, of Belleville, New Jersey, and two other violent gang members were convicted in July 2018 following a two-month trial. Thirteen of the 14 defendants charged in the indictment have been convicted. One remaining defendant, Khalil Stafford, is pending trial.

An additional 68 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. Sixty-six individuals also have been convicted, and charges remain pending against two.

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

As part of the racketeering conspiracy, Singleton admitted that he used fellow members of the New Jersey set of the Grape Street Crips to intimidate a witness against him by having those gang members sitting in the gallery of the courtroom as the witness took the stand. Singleton was facing criminal charges brought by the Essex County Prosecutor’s Office for aggravated assault, possession of a weapon for an unlawful purpose, and unlawful possession of a firearm for a shooting that occurred in April 2013. As a result of Singleton’s effort, the witness refused to testify against him and the charges were dismissed.

Afterwards, Singleton was intercepted over a wiretap bragging to a fellow gang-member: “Who you know cause a ruckus on these motherfuckin’ streets, come home, do whatever the fuck they want, and still be out here, son?”

Singleton also admitted to participating in conspiracies to distribute one kilogram or more of heroin and 280 grams or more of crack-cocaine.

The Grape Street Crips controlled drug trafficking and other criminal activities in various areas of Newark, including the area of 6th Avenue and North 5th Street and public-housing complexes at Pennington Court, Oscar Miles, the Millard Terrell Homes, the John W. Hyatt homes and the former James Baxter Terrace complex.

In addition to the prison term, Judge Arleo sentenced Singleton to five years of supervised release.

U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, and special agents of the DEA, under the direction of Special Agent in Charge Susan A. Gibson, with the investigation. He also thanked the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Theodore N. Stephens 3rd, and the Essex County Sherriff’s Office, under the direction of Armando B. Fontoura, for work on the case.

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

TRENTON, N.J. – A Point Pleasant, New Jersey, man was sentenced today to 16 years in prison for planning to construct and use a pressure cooker bomb in New York on behalf of the Islamic State of Iraq and al-Sham (ISIS), U.S. Attorney Craig Carpenito and Assistant Attorney General for National Security John C. Demers announced.

Gregory Lepsky, 22, pleaded guilty March 13, 2018, before U.S. District Court Judge Michael Shipp to an information charging him with one count of attempting to provide material support to a designated foreign terrorist organization, specifically ISIS. Judge Shipp imposed the sentence today in Trenton federal court.

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

On Feb. 21, 2017, Lepsky was arrested by the Point Pleasant Police Department in connection with an incident that occurred that day in his family’s home. Following the arrest, law enforcement officers searched the residence and found a new pressure cooker stored behind a roll of bubble wrap in Lepsky’s bedroom closet.

During searches of computers and other digital evidence linked to Lepsky, law enforcement officers found evidence of Lepsky’s plan to build and detonate a bomb as part of his support for ISIS. During several social media communications, Lepsky told others that he intended to fight on behalf of ISIS and that he would, if necessary, become a martyr by driving a “bunch of explosives” to where the “enemies” could be found and blowing himself up.

Law enforcement officers also located a series of instructions that had been published online by another terrorist group that gave specific, step-by-step instructions on how to build a pressure cooker bomb, which coincided with the delivery of the pressure cooker to Lepsky a short time before his arrest. In addition, law enforcement officers recovered a message forwarded by Lepsky from another ISIS supporter stating that if a westerner could not travel to Syria to fight for ISIS, he could conduct a terrorist attack in his home country using improvised explosive devices.

At his plea hearing, Lepsky admitted that beginning in January 2017, he began to formulate a plan to detonate the pressure cooker bomb in New York City on behalf of ISIS.  Lepsky admitted that he used the internet to access ISIS directives, obtain bomb-making instructions, and purchase the pressure cooker and other items to be used in the attack.

In addition to the prison term, Judge Shipp sentenced Lepsky to lifetime supervised release.

U.S. Attorney Carpenito and Assistant Attorney General Demers credited the FBI and the Joint Terrorism Task Force, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark; the N.J. State Attorney General’s Office, under the direction of Attorney General Gurbir S. Grewal; the Ocean County Prosecutor’s Office, under the direction of Prosecutor Bradley D. Billhimer; the Point Pleasant Police Department under the direction of Chief Richard P. Larsen; and the N.J. Office of Homeland Security and Preparedness under the direction of Director Jared Maples, with the investigation leading to today’s sentencing.

The government is represented by Assistant U.S. Attorney James Donnelly of the U.S. Attorney’s Office Criminal Division in Newark and Trial Attorney Justin Sher of the National Security Division’s Counterterrorism Section.

TRENTON, N.J. – A Union County, New Jersey, man today admitted his role in a conspiracy to hijack the credit card accounts of multiple victims in order to fraudulently purchase hundreds of thousands of dollars in high-end products, U.S. Attorney Craig Carpenito announced.

Oluwaseun Jato, 29, of Hillside, New Jersey, pleaded guilty before U.S. District Judge Peter G. Sheridan in Trenton federal court to an indictment charging him with one count of conspiracy to commit bank fraud and one count of aggravated identity theft.

According to documents filed in this case and statements made in court:    From July 2016 through May 2017, Jato and others participated in a credit card takeover conspiracy to obtain control of credit card accounts by contacting financial institutions and posing as account owners so they could change the personal information associated with their accounts, including the residential address, email address, and telephone number.

Members of the conspiracy then opened new accounts or ordered replacement cards to be shipped to them without the account owners’ knowledge or authorization. Jato and others used the compromised credit card accounts to purchase high-value items, including smartphones, tablets, and other electronic devices. Jato admitted receiving 25 percent to 30 percent of the illegal proceeds from more than 10 victims.  
  
The bank fraud conspiracy charge carries a maximum potential penalty of 30 years in prison and a $1 million fine. The aggravated identity theft charge carries a mandatory sentence of two years in prison, which must run consecutive to any other term of imprisonment imposed. Sentencing is scheduled for May 30, 2019.

Co-defendants Alexus Omowole and Henry Abdul previously pleaded guilty to conspiracy to commit bank fraud and aggravated identity theft and are awaiting sentencing.  

U.S. Attorney Carpenito credited postal inspectors with the U.S. Postal Inspection Service, under the direction of Inspector in Charge James Buthorn, and special agents of the 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. Attorneys Ray Mateo and Nicholas Grippo, Attorney-in-Charge of the Trenton Office.

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

Andrew Nicholas, 22, of Williamstown, New Jersey, is charged by criminal complaint one count of sexually exploiting children and one count of distributing child pornography. He appeared before U.S. Magistrate Judge Joel Schneider in Camden federal court and was detained without bail.

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

On Feb. 26, 2019, an undercover officer entered a public Kik Messenger group and began communicating with Nicholas, who sent the officer images of child sexual abuse involving a prepubescent minor.

The count of sexually exploiting children carries a mandatory minimum penalty of 15 years in prison, a maximum potential penalty of 30 years in prison and a $250,000 fine. The distribution of child pornography count carries a mandatory minimum penalty of five years in prison, a maximum possible penalty of 20 years in prison and fine of $250,000 per count.

U.S. Attorney Carpenito credited special agents of the FBI, Philadelphia Division, under the direction of Special Agent in Charge Michael Harpster, and the Washington, D.C., FBI Field Office, under the direction of Assistant Director in Charge Nancy McNamara, with the investigation leading to the charges.

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

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

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

TRENTON, N.J. – A Toms River man was sentenced today to 70 months in prison for distributing images of child sexual abuse over a social media application, U.S. Attorney Craig Carpenito announced.

David Nelson, 44, previously pleaded guilty before U.S. District Judge Freda L. Wolfson to an information charging him with distribution of child pornography. Judge Wolfson imposed the sentence today in Trenton federal court.

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

As a result of an investigation conducted by the FBI Louisville, Kentucky, field office, law enforcement officers arrested an individual after he offered to broadcast the sexual abuse of his daughter over Kik Messenger to an undercover officer. A search of his cell phone revealed chat group communications between that individual and another Kik user operating under the user name “candicesloan1995,” which was later revealed to be Nelson. Nelson was arrested April 9, 2018.

Nelson admitted today that between Oct. 24, 2017 and Oct. 26, 2017, he used his Kik account under the user name “candicesloan1995” to transmit at least 26 images of child pornography to another Kik user. Nelson also admitted that he was an administrator of multiple Kik chat rooms in which child pornography was shared and discussed.

In addition to the prison term, Judge Wolfson sentenced Nelson to five years of supervised release.

U.S. Attorney Carpenito credited FBI special agents of the Franklin Township Resident Agency, under the direction of Special Agent in Charge Gregory Ehrie in Newark, FBI special agents under the direction of Special Agent in Charge Amy S. Hess in Louisville, and FBI special agents under the direction of Special Agent in Charge Timothy Slater in Detroit, with the investigation leading to today’s sentencing. He also thanked the Toms River Police Department, under the direction of Chief of Police Mitchell A. Little, for its assistance.

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

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

Misused Government Property to Punish Fort Lee Mayor for Not Endorsing
Gov. Christie’s Re-election

NEWARK, N.J. – A former top official of the Port Authority of New York and New Jersey was sentenced today to 18 months in prison for his role in a scheme to punish the mayor of Fort Lee, New Jersey, by misusing Port Authority resources to cause traffic problems in the borough, Attorney for the United States Mark Coyne announced.

William E. Baroni Jr., 47, formerly the deputy executive director of the Port Authority, was sentenced by U.S. District Judge Susan D. Wigenton in Newark federal court.

Baroni and Bridget Anne Kelly, 46 — formerly deputy chief of staff for legislative and intergovernmental affairs in then-Gov. Chris Christie’s office — were each convicted on Nov. 4, 2016, of conspiring to misuse, and actually misusing, property of an organization receiving federal benefits; conspiring to commit, and actually committing, wire fraud; conspiring to injure and oppress certain individuals’ civil rights, and acting under color of law to deprive certain individuals of their civil rights. Baroni was originally sentenced to 24 months in prison and Kelly was sentenced to 18 months in prison.

The defendants both appealed their convictions. In a unanimous, precedential opinion, the U.S. Court of Appeals for the Third Circuit on Nov. 27, 2018, affirmed five of seven convictions for each defendant, upholding all but the civil rights counts of conviction and remanding the case to Judge Wigenton for resentencing. Kelly is currently appealing to the U.S. Supreme Court.

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

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

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

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

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

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

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

On Nov. 25, 2013, with Kelly’s and Wildstein’s knowledge, Baroni provided false and misleading testimony about the lane and toll booth reductions to the N.J. Assembly Transportation, Public Works, and Independent Authorities Committee. Baroni knowingly and intentionally made misleading statements and false representations, including: (1) communications between members of the Port Authority Police Department and Wildstein triggered the lane and toll booth reductions; (2) the lane and toll booth reductions were part of a one-week traffic study; and (3) the failure to communicate with Fort Lee and the executive director of the Port Authority was simply the result of communication breakdowns at the Port Authority.

In addition to the prison term, Judge Wigenton sentenced Baroni to one year of supervised release, 500 hours of community service, fined him $7,500 and ordered him to pay restitution of $14,314.

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

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

The case is being overseen by Assistant U.S. Attorney Coyne, Chief of the Appeals Division, because of the recusals of U.S. Attorney Craig Carpenito and First Assistant U.S. Attorney Rachael Honig.

19-044 

Defense counsel: Baroni: Carlos Ortiz Esq. and Mayling Blanco Esq., Princeton, New Jersey; Michael A. Baldassare Esq., Newark
Kelly: Michael Critchley Sr. Esq., Roseland, New Jersey

NEWARK, N.J. – Two Essex County, New Jersey, men have been sentenced to prison for their respective roles in a phony check scheme that stole more than $2 million in merchandise from multiple home-improvement stores throughout the country, U.S. Attorney Craig Carpenito announced today.

Shadeed Phillips, 33, of Irvington, New Jersey, was sentenced to 12 months and one day in prison and Koreen Higgs, 45, also of Irvington, was sentenced to 33 months in prison. Both defendants previously pleaded guilty before U.S. District Judge Katharine S. Hayden to informations charging them each with one count of conspiracy to commit wire fraud. Judge Hayden imposed Phillips’ sentence today and Higgs’ sentence on Feb. 25, 2019, in Newark federal court.

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

Starting in December 2013 and continuing through February 2017, several individuals, including Phillips and Higgs, conspired to obtain merchandise or store credit from home-improvement stores in locations along the eastern United States, including New Jersey, by purchasing items with fraudulent checks.

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

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

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

In addition to the prison term, Judge Hayden sentenced Phillips and Higgs each to three years of supervised release.

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

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

Defense counsel: Phillips: Thomas Ambrosio Esq.. Lyndhurst, New Jersey
Higgs: Alexander Booth Esq., Jersey City, New Jersey

NEWARK, N.J. – An active-duty member of the U.S. Navy today admitted her role in a conspiracy to illegally purchase five semi-automatic handguns bound for New Jersey, U.S. Attorney Craig Carpenito announced.

Tesora Amanda Cortes Trejorojas, 24, of Norfolk, Virginia, pleaded guilty before U.S. District Judge Kevin McNulty in Newark federal court to an indictment charging her with one count of conspiring with others to transport and receive in New Jersey firearms purchased and obtained outside the state.

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

Trejorojas admitted that in November 2017, she engaged in text messages with Azia Sinclair in which Trejorojas agreed to purchase firearms for Sinclair and her boyfriend, Shyheim Tyson, a/k/a “Shy,” who were both residents of New Jersey.

On Nov. 11, 2017, Sinclair and Tyson drove from New Jersey to Trejorojas’ residence in Norfolk. All three went to a gun store in Norfolk, where Trejorojas purchased five semiautomatic handguns, as well as 200 rounds of ammunition, with cash provided by Sinclair and Tyson. The next day, Sinclair and Tyson drove back to New Jersey with the five handguns and ammunition.

Approximately five hours after Sinclair and Tyson arrived back in New Jersey, an individual was arrested in Orange, New Jersey, after police officers responded to the sound of gunshots. During the arrest, police officers recovered one of the five handguns that Sinclair and Tyson had transported from Virginia to New Jersey.

In March 2018, law enforcement executed a search warrant on Sinclair’s residence in Newark, and found another of the guns that Sinclair and Tyson had transported from Virginia to New Jersey in November 2017.

Tyson pleaded guilty to conspiracy to transport and receive in New Jersey firearms purchased and obtained outside the State of New Jersey, and he was sentenced on Jan. 7, 2019, to 37 months in prison. Sinclair is awaiting trial.

The conspiracy to traffic in firearms carries a maximum penalty of five years in prison and a $250,000 fine. Sentencing is scheduled for Sept. 25, 2019.

U.S. Attorney Carpenito credited special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge John B. Devito, Newark Field Division, and Special Agent in Charge Thomas L. Chittum III, Washington Field Division, with the investigation leading to today’s guilty plea. He also thanked the N.J. State Police; the Newark Department of Public Safety; and Naval Criminal Investigative Service (NCIS) in Norfolk for their assistance.

The government is represented by Assistant U.S. Attorney Jonathan W. Romankow of the Violent Crimes Unit in Newark.

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

Defense counsel: Trejorojas: Jonathan F. Marshall Esq., Red Bank, New Jersey
Sinclair: Linda Foster Esq., Assistant Federal Public Defender, Newark
Tyson: Vincent J. LaPaglia Esq., Hoboken, New Jersey

NEWARK, N.J. – A resident of the Dominican Republic is scheduled to appear in federal court today for allegedly trying to smuggle into the United States approximately three kilograms of cocaine, U.S. Attorney Craig Carpenito announced.

Jose Manuel Jimenez Jimenez, 46, is charged by complaint with one count of illegal importation of more than 500 grams of cocaine. He was arrested Feb. 22, 2019, and is scheduled to appear this afternoon before U.S. Magistrate Judge Michael A. Hammer in Newark federal court.

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

Jimenez arrived at Newark Liberty International Airport on a flight from Santo Domingo, Dominican Republic. During a screening, law enforcement officers discovered the cocaine sewn into the vest Jimenez was wearing.

The count with which Jimenez is charged carries a mandatory minimum penalty of five years in prison, a potential maximum penalty of 40 years in prison, and a $5 million fine.

U.S. Attorney Carpenito credited the U.S. Department of Homeland Security, Homeland Security Investigations, New Jersey Division, under the direction of Special Agent in Charge Brian Michael; and officers of Customs and Border Protection, under the direction of Troy Miller, director of Field Operations, New York Field Office, with the investigation leading to the charges.

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

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

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

NEWARK, N.J. – An Essex County, New Jersey, man today admitted defrauding the Social Security Administration (SSA) of more than $200,000, U.S. Attorney Craig Carpenito announced.

Fernando Solaris, 63, pleaded guilty before U.S. District Judge Jose L. Linares in Newark federal court to a superseding information charging him with Social Security disability fraud and theft of government property.

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

After immigrating to the United States in 1970, Solaris applied for, and received, three Social Security numbers (SSNs). He did so by slightly altering the personal information he provided on the application for each new SSN. In March 2002, using one of his SSNs, Solaris began receiving Supplemental Social Security Income and Disability benefits by claiming that he had constant pain in his back and left leg, which precluded him from working. He did not disclose to authorities that he had two additional Social Security numbers.

From 2002 through 2012, Solaris used two other Social Security cards to sporadically maintain employment in New Jersey while continuing to receive supplemental income and disability benefits. Solaris defrauded the SSA of $221,364 in Disability Insurance Benefits (DIB).

The count of Social Security fraud is punishable by a maximum of five years in prison, the count of theft of government property is punishable by a maximum of 10 years in prison; each count is punishable by a fine of $250,000, or twice the gross amount of any pecuniary gain by the defendant or loss to any victims, whichever is greatest. Sentencing is scheduled for June 4, 2019.

U.S. Attorney Carpenito credited special agents of the Social Security Administration Office of the Inspector General, under the direction of Special Agent in Charge John F. Grasso in New York, with the investigation leading to the guilty plea.

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

Defense counsel: Kevin Carlucci Esq., Assistant Federal Public Defender, Newark

CAMDEN, N.J. – A Pennsylvania man was sentenced today to 147 months in prison for committing three armed robberies in Salem, Ocean, and Cumberland counties in November 2017, U.S. Attorney Craig Carpenito announced.

Terrance Robinson, 32, of Havertown, Pennsylvania, previously pleaded guilty before U.S. District Judge Jerome B. Simandle to an information charging him with one count of Hobbs Act robbery, two counts of bank robbery, and one count of possession of a firearm in furtherance of a crime of violence. Judge Simandle imposed the sentence today in Camden federal court.

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

On Nov. 1, 2017, Robinson and Jeffery Edmonds, 45, of Ridley Park, Pennsylvania, drove together to a convenience store in Upper Pittsgrove Township, New Jersey, stopping along the way to pick up a handgun and remove the license plates from the car that Edmonds was driving. After arriving at the convenience store, Edmonds remained in the getaway car while Robinson entered the store with the handgun and stole some money.

Edmonds and Robinson robbed an Ocean First Bank in Upper Deerfield Township, New Jersey, on Nov. 6, 2017, and a Fulton Savings Bank in Alloway Township, New Jersey, on Nov. 14, 2017. Prior to robbing the banks, Edmonds and Robinson removed the license plates from the getaway car. Robinson stayed in the getaway car while Edmonds entered the banks and robbed them with a handgun.

In addition to the prison term, Judge Simandle sentenced Robinson to five years of supervised release and ordered him to pay restitution of $13,527.

Edmonds previously pleaded guilty for his alleged roles in the robberies, and his sentencing is scheduled for March 1, 2019.

U.S. Attorney Carpenito credited special agents of the FBI’s South Jersey Resident Agency, under the direction of Special Agent in Charge Michael Harpster in Philadelphia, special agents of the FBI Newark Field Office, under the direction of Special Agent in Charge Gregory W. Ehrie, and officers of the N.J. State Police, under the direction of Superintendent Col. Patrick J. Callahan, with the investigation leading to today’s sentencing.

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

NEWARK, N.J. – Four additional people have been charged for their respective roles in a conspiracy to distribute more than five kilograms of cocaine, U.S. Attorney Craig Carpenito announced today.

Victoria Irizarry, 30, of Fort Lee, New Jersey; Marisol Vargas, 34, of Rowland Heights, California; Daniel Estrella, 28, of Lyndhurst, New Jersey; and Cohen Easton, 46, a/k/a “Power,” of Paterson, New Jersey, are charged by complaint with one count of conspiracy to possess with intent to distribute approximately five kilograms or more of suspected cocaine.

Vargas and Irizarry appeared this afternoon before U.S. Magistrate Judge Steven C. Mannion in Newark federal court and were released on bail. Easton appeared Feb. 21, 2019, before Judge Mannion and was detained. Estrella remains at large. Previously, Derik Sanchez, 32, of Fort Lee, New Jersey, and James Ferrer, 34, of Belleville, New Jersey were charged in related federal conspiracy complaints.

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

In September and October 2018, Vargas, who allegedly maintained a narcotics stash house in California, brokered the shipment of boxes of cocaine to Sanchez, Irizarry, and others in New Jersey using the U.S. Postal Service. The cocaine, which was intercepted by law enforcement, was to be sold in New Jersey and New York by Sanchez and other members of the conspiracy, including Ferrer, Easton, and Estrella.

Each defendant faces a mandatory minimum penalty of 10 years in prison, a maximum potential penalty of life in prison, and a $10 million fine.

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

The government is represented by Assistant U.S. Attorney Ari Fontecchio of the Economic Crimes Unit and Senior Trial Counsel Jamie Hoxie of the OCDETF/Narcotics Unit in Newark.

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

Carlos Santiago-Gomez, 29, of Absecon, New Jersey, pleaded guilty before U.S. District Judge Jerome B. Simandle in Camden federal court to one count of distributing images of child pornography and was detained without bail.

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

On March 27, 2018, law enforcement officers from the FBI’s Atlantic City Child Exploitation Task Force executed a search warrant at Santiago-Gomez’s residence in Absecon, New Jersey, and seized multiple items of digital evidence, including cell phones, CD discs, thumb drives, hard drives and computers, which contained thousands of images of child sexual abuse. Agents also located evidence showing that in July and August 2017, Santiago-Gomez posted videos of child sexual abuse on at least two KIK instant message groups, while also acting as the administrator of one of those groups.

The count of distribution of child pornography is punishable by a minimum of five years in prison and a maximum of 20 years in prison, and a fine of $250,000. Sentencing is scheduled for June 6, 2019.

U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark; the N.J. State Police, under the direction of Col. Patrick J. Callahan; the Atlantic County Prosecutor’s Office, under the direction of Prosecutor Damon G. Tyner; the Atlantic County Sheriff’s Office, under the direction of Sheriff Eric Scheffler; and N.J. Human Services Police, under the direction of Director Timothy J. Gallagher, with the investigation leading to today’s guilty plea.

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

Defense counsel: Brenden T. Shur Esq., Northfield, New Jersey

NEWARK, N.J. – The United States has reached an agreement with Rider University to settle allegations that the school violated the Americans with Disabilities Act (ADA) by failing to make reasonable modifications to its policies, practices, and procedures for students with food allergy-related disabilities, U.S. Attorney Craig Carpenito announced today.   

The matter originated from a complaint by a former Rider student with celiac disease, which is triggered by consumption of gluten. Celiac disease can cause permanent damage to the surface of the small intestines and an inability to absorb certain nutrients, leading to vitamin deficiencies that affect the brain, nervous system, bones, liver and other organs. According to the complaint, Rider University did not provide reasonable modifications to its policies, practices, and procedures regarding its dining program.

The ADA prohibits discrimination against individuals with disabilities by public accommodations, including colleges and universities. Under the ADA, a disability is any mental or physical impairment that substantially limits a major life activity, and the ADA includes a wide range of major life activities – including eating – and the operation of major bodily functions, like the immune system. The ADA requires colleges and universities to reasonably modify their policies, practices or procedures when necessary to avoid disability discrimination, unless such entities can demonstrate that the modifications being sought would fundamentally alter the nature of the goods and services of the university.

The U.S. Attorney’s Office determined that Rider University failed to provide reasonable modifications to its policies, practices, and procedures for students with food allergy-related disabilities and failed to adequately train its staff on appropriate policies for accommodating individuals with food allergies. Since the beginning of the investigation, Rider University has worked cooperatively to develop and amend its policies and practices to comply with the ADA. 

The settlement agreement requires Rider University to adopt policies for accommodating students with food allergy-related disabilities instead of relying on the limited policies of a food service vendor, make certain structural changes to food service areas to provide allergen-free food preparation areas in its dining facilities, employ a full-time dietician to advise the University and its students on ways to address food allergy-related disability issues, and create a “pre-order” option for students with food allergies.

“We commend Rider University on working to ensure that its students with severe food allergies have options that meet their needs,” US Attorney Craig Carpenito said. “This agreement will improve the experience of students with food allergy-related disabilities and help them to focus on getting an education.”

The government is represented by Assistant U.S. Attorney Daniel Meyler and Michael E. Campion, chief of the Civil Rights Unit, of the U.S. Attorney’s Civil Division in Newark.

Individuals who believe they may have been victims of discrimination may file a complaint with the U.S Attorney’s Office at http://www.justice.gov/usao-nj/civil-rights-enforcement/complaint or call the U.S. Attorney’s Office’s Civil Rights Complaint Hotline at (855) 281-3339. Additional information about the ADA can be found at www.ada.gov, or by calling the Department of Justice’s toll-free information line at (800) 514-0301 and (800) 514-0383 (TDD).

NEWARK, N.J. – Three Union County, New Jersey, men have been charged with robbing liquor stores at gunpoint in November 2018, U.S. Attorney Craig Carpenito announced today.

Paul Jimenez, 29, Jaime Fontanez, 41, and Vincent Chan-Guillen, 28, of Elizabeth, New Jersey, are all charged by complaint with one count of conspiring to commit Hobbs Act robbery and one count of using and carrying a firearm during a crime of violence. Jimenez is also charged with five substantive counts of Hobbs Act robbery and Fontanez and Chan-Guillen are charged with four substantive counts of Hobbs Act robbery. Jimenez and Fontanez appeared before U.S. Magistrate Judge Steven C. Mannion in Newark federal court on Feb. 20, 2019, and were detained. Chan-Guillen is expected to make his initial appearance at a later date.

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

The FBI investigated a string of armed robberies of liquor stores that took place in Middlesex, Union and Essex counties beginning in November 2018. During each of the robberies, one of the defendants allegedly brandished a handgun at the store clerk while another defendant went behind the counter and stole money from the cash register.    

During one of the robberies in Essex County, one of the robbers fired a shot as they ran from the store. No one was injured in that incident. That firearm was later found in Chan-Guillen’s possession on Nov. 30, 2018. 

The Hobbs Act charges each carry a maximum potential penalty of 20 years in prison. The brandishing of a firearm during a crime of violence carries a maximum potential penalty of life in prison and a mandatory minimum sentence of seven years in prison, which must run consecutively to any other prison term. The discharging of a firearm during a crime of violence carries a maximum potential penalty of life in prison and a mandatory minimum sentence of 10 years in prison, which must run consecutively to any other prison term. Each count also carries a potential $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 in Newark, with the investigation leading to the arrests.  He also thanked the Elizabeth Police Department, under the direction of Chief John Brennan; the Rahway Police Department, under the direction of Chief  John Rodger; the Woodbridge Police Department, under the direction of Director Robert Hubner; the Bloomfield Police Department, under the direction of Public Safety Director Samuel A. DeMaio; the Linden Police Department, under the direction of Chief David Hart; the Kenilworth Police Department, under the direction of Chief John Zimmerman; the Union Police Department Police Department, under the direction of Director Dan Zieser; and the N.J. State Police, under the direction of Col. Patrick J. Callahan for their work on this case.

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

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

NEWARK, N.J. – A New York man today admitted participating in a scheme that used secret card-reading devices and pinhole cameras on various New Jersey bank locations to steal at least $428,581, U.S. Attorney Craig Carpenito announced.

Bogdan Rusu, 39, of Queens, New York, pleaded guilty before U.S. District Judge Esther Salas to an information charging him with one count of conspiracy to commit bank fraud.

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

Rusu and others sought to defraud financial institutions and their customers by illegally obtaining customer account information, including account numbers and personal identification numbers. Rusu admitted installing equipment on ATMs at banks in New Jersey. Eleven other defendants charged in this scheme have pleaded guilty.

The conspiracy to commit bank fraud charge carries a maximum potential penalty of 30 years in prison and a $1 million fine. Sentencing is scheduled for July 1, 2019.

U.S. Attorney Carpentio credited special agents of the U.S. Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI), under the direction of Special Agent in Charge Brian Michael in Newark; special agents of the U.S. Secret Service, Boston Field Office; Longmeadow, Massachusetts, Police Department; Cambridge, Massachusetts, Police Department; and Medford, Massachusetts, Police Department, with assistance from the victim banks, with the investigation leading to today’s guilty plea. The Middlesex County, Massachusetts, District Attorney’s Office; U.S. Attorney’s Office of the Eastern District of New York and U.S. Attorney’s Office of the District of Massachusetts, Springfield Division assisted in the investigation and prosecution. 

The government is represented by Assistant U.S. Attorney Kelly Graves of the U.S. Attorney’s Office Criminal Division in Newark and Trial Attorney Marianne Shelvey of the Justice Department’s Criminal Division Organized Crime and Gang Section.

NEWARK, N.J. – A former U.S. Postal Service (USPS) mail carrier today admitted that she accepted cash bribes in return for removing envelopes containing credit cards from the mail and providing these stolen credit cards to the individual who gave her the cash bribes, U.S. Attorney Craig Carpenito announced.

Kyanne Costley, 24, of Newark, pleaded guilty before U.S. District Judge Katharine S. Hayden in Newark federal court to an information charging her with one count of accepting bribes.

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

Costley was a mail carrier in Elizabeth, New Jersey. From September 2017 through February 2018, Costley accepted cash bribes from Moussa Dagno, whom she knew by his alias only, for stealing credit cards from the mail and giving the stolen credit cards to Dagno. Dagno was arrested in February 2018 and was charged by complaint with bribery and theft of mail.

While on duty, Costley stole credit cards from the mail that were sent by financial institutions to accountholders and then gave those stolen credit cards to Dagno. Costley met with Dagno on more than one occasion to give him the stolen credit cards and received approximately $100 in cash for each stolen credit card that Dagno found acceptable. Costley received a total of $1,750 in cash payments in exchange for the stolen credit cards.

The bribery charge is punishable by a maximum potential penalty of 15 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. Sentencing is scheduled for May 29, 2019.

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

The government is represented by Assistant U.S. Attorney Jihee G. Suh of the U.S. Attorney’s Office Special Prosecutions Division in Newark.

NEWARK, N.J. – A Jersey City, New Jersey, man was sentenced today to 120 months in prison for his role in a cocaine distribution conspiracy operating in Jersey City, U.S. Attorney Craig Carpenito announced.

Rayfael Roman, 34, previously pleaded guilty before U.S. District Judge Kevin McNulty to an information charging him with one count of conspiracy to distribute and to possess with intent to distribute 500 grams or more of cocaine. Judge McNulty imposed the sentence today in Newark federal court.

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

Roman admitted that from September 2017 through Feb. 7, 2018, he conspired with others to distribute cocaine. Roman also admitted that in February 2018 he spoke on the telephone with a conspirator and agreed to sell that person one kilogram of cocaine for $29,500. Law enforcement officials intercepted these conversations using a court order to intercept wire and electronic communications on Roman’s cellular phone.

Before Roman and the conspirator could complete the cocaine sale, law enforcement officers obtained and executed a search warrant for Roman’s apartment in Jersey City. They found approximately 2.5 kilograms of cocaine, approximately $30,000 in cash, and various other materials commonly associated with drug distribution, such as an electronic money-counting machine, a digital scale, and drug-packaging materials.

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

U.S. Attorney Carpenito credited the Hudson County Prosecutor’s Office under the leadership of Prosecutor Esther Suarez, and special agents of the Drug Enforcement Administration, 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 Jonathan W. Romankow of the U.S. Attorney’s Office Violent Crimes Unit in Newark.

NEWARK, N.J. – A Florida man was arrested today on charges that he laundered funds related to an $8.5 million business account takeover scheme with ties to Eastern Europe, U.S. Attorney Craig Carpenito announced.

Igor Buzyukov, 51, is charged by criminal complaint with one count of money laundering. He is scheduled to appear tomorrow in Miami federal court.

According to the complaint:

Between February 2018 and July 2018, Buzyukov and others were allegedly part of an account takeover scheme aimed at several clients of Company-1, a financial technology company headquartered in San Jose, California. The scheme resulted in total losses exceeding $8.5 million.

The scheme generally involved an unidentified individual or individuals calling Company-1 and impersonating a representative of one of the victim companies. The individual would then request that an unauthorized bank account be added to the victims’ Company-1 accounts and be designated to receive payments from e-commerce customers.

The unauthorized bank accounts added to the victims’ Company-1 accounts were each controlled by Buzyukov under the name of a corporation registered to him in Florida. After monies were deposited to the unauthorized accounts, Buzyukov would transfer the funds to other accounts controlled by him. Buzyukov then wired the majority of the funds to several bank accounts held by various individuals in Russia, Turkey and Ukraine.

The money laundering charge carries a maximum penalty of 20 years in prison and a fine of $500,000, or twice the value of the property involved, whichever is greater.

U.S. Attorney Carpenito credited special agents of the U.S. Secret Service, under the direction of Special Agent in Charge Mark McKevitt, with the investigation leading to today’s arrest. 

The government is represented by Assistant U.S. Attorney Anthony Torntore of the U.S. Attorney’s Cybercrimes Unit 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. – An Essex County, New Jersey, woman was sentenced today to 24 months in prison for her role in a food stamps fraud scheme, U.S. Attorney Craig Carpenito announced.

Maria Teresa Venegas of Newark previously pleaded guilty before U.S. District Judge John Michael Vazquez to an information charging her with one count of Supplemental Nutrition Assistance Program (SNAP) benefit fraud. Judge Vazquez imposed the sentence today in Newark federal court.

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

Venegas was the listed owner of Jenny’s Deli, a small grocery store in Newark. From March 2015 to March 2018, her father, Manuel Venegas, was an employee of Jenny’s Deli.

Jenny’s Deli 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. According to the charges against them, Maria Teresa Venegas and Manuel Venegas exchanged more than $885,000 in SNAP benefits for cash between 2011 and 2018.

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.

In addition to the high volume of SNAP benefits redemptions for Jenny’s Deli, indicating fraud, law enforcement agents verified the fraudulent exchange of SNAP benefits for cash through the use of an undercover law enforcement agent who engaged in approximately 20 “purchases” at Jenny’s Deli where Manuel Venegas, Maria Teresa Venegas, or another Jenny’s Deli employee acting at their direction exchanged money for SNAP benefits.

In addition to the prison term, Judge Vazquez sentenced Maria Teresa Venegas to two years of supervised release and ordered restitution of $888,487.

Manuel Venegas pleaded guilty on Oct. 30, 2018, to the same charge and is scheduled to be sentenced March 6, 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, with the investigation leading to today’s sentencing.

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

NEWARK, N.J. – A Newark man was convicted in federal court today for his role in the September 2017 armed robbery of a jewelry exchange located in Elizabeth, New Jersey, U.S. Attorney Craig Carpenito announced.

William Valentin, 43, was found guilty of one count of conspiring to commit Hobbs Act robbery, one count of Hobbs Act robbery, one count of brandishing a firearm during a crime of violence, and one count of conspiring to use a firearm during a crime of violence. Valentin was convicted following a six-day trial before U.S. District Judge Madeline Cox Arleo in Newark federal court.

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

On the morning of Sept. 5, 2017, four masked individuals, including Valentin, entered a jewelry exchange located in Elizabeth. Valentin then brandished a firearm at an employee while the other conspirators unloaded the contents of the store’s safes into large bags. Video surveillance showed Valentin and other conspirators entering the mall, approaching the jewelry exchange, and running out with the bags of jewelry. Afterwards, Valentin and his conspirators jumped into a black Audi and drove away.

In January 2018, Valentin was arrested in Holyoke, Massachusetts, with a backpack containing jewelry stolen from the Elizabeth exchange in his possession.

The count of brandishing a firearm during a crime of violence carries a mandatory minimum sentence of seven years in prison, which must be imposed consecutive to any other sentence imposed. The Hobbs Act, Hobbs Act conspiracy, and conspiracy to use a firearm in the commission of a crime of violence charges each carry a statutory maximum of 20 years in prison and a $250,000 fine, or twice the gain or loss from the offense.

U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, the Elizabeth Police Department, under the direction of Chief Ronald Simon, and the Union County Prosecutor’s Office, under the direction of Acting Prosecutor Michael A. Monahan, with the investigation leading to today’s guilty verdicts. He also thanked the Holyoke Police Department, under the direction of Chief James Neiswanger, for its assistance.

The government is represented by Assistant U.S. Attorneys Lauren E. Repole and Cari Fais of the U.S. Attorney’s Office in Newark.

NEWARK, N.J. – A federal grand jury has indicted the former president and the former chief legal officer of Cognizant Technology Solutions Corp., a publicly traded Fortune 200 technology services company based in Teaneck, New Jersey, in connection with a foreign bribery scheme.
U.S. Attorney Craig Carpenito of the District of New Jersey, Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, and Special Agent in Charge Gregory W. Ehrie of the FBI Newark Field Office made the announcement today.

“Corruption, bribery, and kickbacks have no rightful place in American business, and corporate officials who bribe foreign officials to gain a competitive advantage are breaking U.S. law,” U.S. Attorney Carpenito said. “As this indictment shows, we will investigate and prosecute those who would misuse their privileged positions as senior corporate executives to offer and pay bribes, and then conceal their misconduct from investors, so that we can help to restore public trust in a market that is fair and open for all.”

“The allegations in the indictment filed yesterday describe a sophisticated international bribery scheme authorized and concealed by C-suite executives of a publicly-traded multinational company,” Assistant Attorney General Benczkowski said. “The indictment of Gordon Coburn and Steven Schwartz demonstrates the Department’s commitment to relentlessly pursuing corporate fraud and corruption wherever it is found.”

“The FBI’s stance on corruption and fraud is that of zero tolerance and therefore one of our highest priorities,” Special Agent in Charge Gregory W. Ehrie said. “In this time of international commerce, whether at home or overseas, the FBI is committed to fighting both corruption and fraud. Companies should have the opportunity to prosper through honest business practices, not the practice of bribery and backroom deals.”

Gordon Coburn, 55, of Beaver Creek, Colorado, and Steven Schwartz, 51, of Greenwich, Connecticut, were charged in a 12-count indictment with one count of conspiracy to violate the Foreign Corrupt Practices Act (FCPA), three counts of violating the FCPA, seven counts of falsifying books and records, and one count of circumventing and failing to implement internal accounting controls. The charges stem from an alleged scheme to bribe one or more government officials in India to ensure the issuance of a construction permit necessary to complete the development of an office campus that would support thousands of employees and become one of Cognizant’s largest facilities in India.

The case is assigned to U.S. District Judge Kevin McNulty of the District of New Jersey. The defendants are scheduled to appear this afternoon before U.S. Magistrate Judge Mark Falk in Newark federal court.

According to the indictment:

In April 2014, Coburn and Schwartz authorized an unlawful payment of $2 million to one or more government officials in India to secure and obtain the necessary permits to open a new office campus. To conceal Cognizant’s involvement in the scheme, Coburn, Schwartz and others allegedly agreed that a third-party construction company would obtain the permit by making the illegal bribe payment and that Cognizant would reimburse the construction company through phony construction invoices at the end of the project. The indictment alleges that in late June 2014, after the conspirators had agreed that the construction company would make the bribe payment on behalf of Cognizant, the construction company secured the necessary government order for Cognizant to obtain the permit, allowing Cognizant to complete the development of the office campus and avoid millions of dollars in costs. Months later, the conspirators are alleged to have knowingly caused Cognizant to funnel over $2 million to the construction company disguised as payment for cost overruns on the office campus when they knew that the actual purpose of the payment was to reimburse the construction company for the bribe payment.

According to the indictment, as Coburn, Schwartz and others had previously agreed, they hid the bribe reimbursement payment within a series of line items in a construction change order request to be paid to the construction company, thereby concealing the true nature and purpose of the reimbursement, falsifying Cognizant’s books and records, and circumventing and failing to implement its internal controls.

The Department of Justice and the U.S. Attorney’s Office for the District of New Jersey also announced today that they have declined prosecution of Cognizant after considering the factors set forth in the Department of Justice’s Principles of Prosecution of Business Organizations and the Corporate Enforcement Policy, including Cognizant’s prompt voluntary self-disclosure, cooperation and remediation, as well as Cognizant’s disgorgement to the Department and the U.S. Securities and Exchange Commission (SEC) of the cost savings that resulted from the bribery scheme.

In the related case with the SEC, Cognizant entered into a cease-and-desist order and agreed to pay the SEC a civil penalty, disgorgement and prejudgment interest totaling $25 million.

The Department appreciates the significant cooperation provided by the SEC in this case.

The case is being investigated by the FBI’s Newark Field Office.

The government is represented by Assistant U.S. Attorneys Courtney A. Howard and Nicholas P. Grippo, Attorney in Charge of the Trenton Office of the District of New Jersey, and Assistant Chief David A. Last of the DOJ Criminal Division’s Fraud Section.

The Fraud Section is responsible for investigating and prosecuting all FCPA matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.

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

TRENTON, N.J. – Two men have been arrested in Riverside, California, for their alleged roles in shipping over 30 pounds of crystal methamphetamine and conspiring to send an additional five kilos of fentanyl into New Jersey, U.S. Attorney Craig Carpenito announced today.

Isabel Otanez-Sanchez, 25, and Jesus Zavala-Torres, 33, both of San Jacinto, California, are charged by complaint with one count of conspiracy to possess with intent to distribute 500 grams or more of methamphetamine and 400 grams or more of fentanyl. Torres appeared Feb. 13, 2019, before a federal magistrate judge in Riverside, and Sanchez is scheduled to appear in federal court in Riverside today.

According to the complaint:

In September 2018, law enforcement officers received information that an individual known as “Pancho,” later identified as Sanchez, was shipping large quantities of narcotics from California to New Jersey. On Jan. 28, 2019, Sanchez agreed to send 30 pounds of methamphetamine to a law enforcement confidential source (the “CS”) in Atlantic City, New Jersey. Torres and Sanchez hid 28 packages of methamphetamine inside a salvaged vehicle that was shipped to New Jersey from California via a car carrier service. Agents recovered the methamphetamine from the car’s gas tank.

On Feb. 12, 2019, the CS met with Sanchez and Torres in Riverside to pay for the methamphetamine. At this meeting, Sanchez and Torres also agreed to sell an additional five kilos of fentanyl to the CS, which would be shipped to the CS in New Jersey in the same manner as the methamphetamine. After agreeing to the sale of the fentanyl, Torres left the meeting to retrieve two kilos of fentanyl to show to the CS prior to shipment. As Torres was driving back to the meeting, he was stopped by local law enforcement officers and two kilos of fentanyl were recovered from his automobile.

Both defendants face a mandatory minimum penalty of 10 years in prison, a maximum potential penalty of life in prison, and a $10 million fine.

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

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

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

NEWARK, N.J. – A Somerset County, New Jersey, man was charged today with lying during proceedings before the U.S. Department of Labor, Occupational Safety and Health Administration (OSHA), U.S. Attorney Craig Carpenito announced

Robert Riley, 42, of Far Hills, New Jersey, is charged with one count of perjury. Riley was scheduled to make his initial appearance this afternoon before U.S. Magistrate Judge Mark Falk in Newark federal court.

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

Riley owns RSR Home Construction in Bernardsville, New Jersey. Riley became the subject of an OSHA safety investigation after two separate incidents in which workers fell from a roof and were seriously injured. The workers had purportedly been tasked by Riley to perform roof repairs on a barn structure without proper training or safety equipment. As part of its investigation, OSHA took Riley’s deposition, at which he testified under oath that he never authorized anyone to perform roof repairs. Text messages from Riley to construction workers reveal that he instructed the very roof work that precipitated the fall incidents.

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

U.S. Attorney Craig 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; Occupational Safety and Health Administration, under the direction of Acting Regional Administrator Richard Mendelson; and Office of the Solicitor, Region II, under the direction of Regional Solicitor Jeffrey S. Rogoff.

The government is represented by Assistant U.S. Attorney Ryan L. O’Neill of the U.S. Attorney’s Office’s 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.

Defense counsel: John A. Azzarello Esq., Morristown, New Jersey

NEWARK, N.J. – A Mexican man today admitted his role in conspiring to traffic approximately 300 grams of fentanyl into New Jersey, U.S. Attorney Craig Carpenito announced.

Angel Santo Jerez Matos, 60, a/k/a “El Colonel,” pleaded guilty before U.S. District Judge Kevin McNulty in Newark federal court to an information charging him with conspiracy to possess with intent to distribute more than 40 grams of fentanyl.

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

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

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

The conspiracy charge to which Matos pleaded guilty carries a mandatory minimum penalty of five years in prison, a maximum potential penalty of 40 years in prison, and a $5 million fine. Sentencing is scheduled for June 19, 2019.

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

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

This case is being conducted under the auspices of the 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: Robert Galuccio Esq., Paterson, New Jersey

NEWARK, N.J. – A former civilian employee at Picatinny Arsenal and a former official of a defense contractor with a branch office in Lake Hopatcong, New Jersey, have been charged with conspiracy to commit wire fraud, U.S. Attorney Craig Carpenito announced today.

Robert Dombroski, 63, of Branchville, New Jersey, is charged by complaint with one count of conspiracy to commit wire fraud and four counts of making false statements. Indra Nayee, 51, of Metuchen, New Jersey, is also charged by complaint with one count of conspiracy to commit wire fraud. Both men are scheduled to appear this afternoon before U.S. Magistrate Judge Mark Falk in Newark federal court.

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

Dombroski worked at Picatinny Arsenal for over 30 years, retiring as a federal employee in 2015. He was then hired as a civilian, serving as a Senior Products Manager for advanced weapons. Prior to retiring, Dombroski held the position of senior associate for advanced weapons and worked on and supervised contract projects with a defense contractor, identified in court papers as “Company A,” which is headquartered in Arlington, Virginia, and has a branch office in Lake Hopatcong, New Jersey. In that capacity, Dombroski had influence over the awarding of government contracts to this company and influenced how the money was allocated.

Nayee was the former Picatinny Arsenal division director of Company A, and had direct oversight and control over how his company executed the government contracts it had with Picatinny Arsenal. He supervised and directly managed all branch employees. Nayee was the primary point of contact at Company A for Picatinny Arsenal employees, including Dombrowski.

From 2010 through 2018, Dombroski and Nayee conspired with other federal employees at Picatinny Arsenal and employees of Company A to seek and accept gifts and other items of value, such as Apple products, luxury handbags, Beats headphones, and tickets to a luxury sky box at professional sporting events, valued at $150,000 to $250,000, in exchange for government contracts and other favorable assistance for Company A at Picatinny Arsenal.

The count of conspiracy to commit wire fraud carries a maximum penalty of 20 years in prison. The false statement charges each carry a maximum penalty of five years in prison.

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

The government is represented by Senior Trial Counsel Margaret Ann Mahoney and Assistant U.S. Attorney Thomas S. Kearney of the U.S. Attorney’s Office’s National Security Unit in Newark.

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

Defense counsel: Dombrowski: John Reilly Esq., Nayee: Mauro Wolf Esq., New York

NEWARK, N.J. – The former corporate secretary and director of corporate law at a global technology company headquartered in Cupertino, California, was charged today with insider trading, U.S. Attorney Craig Carpenito announced.

Gene Levoff, 45, of San Carlos, California, was charged by criminal complaint with one count of securities fraud. He is scheduled to make his initial appearance in Newark federal court on Feb. 20, 2019.

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

Between February 2011 and April 2016, Levoff – the top corporate attorney at “Company-1,” who also served the company’s assistant secretary and corporate secretary – engaged in a scheme to defraud the company and its shareholders. He allegedly misappropriated material, nonpublic information about Company-1’s financial results and then executed trades involving the company’s stock. The scheme allowed Levoff to realize profits of approximately $227,000 and to avoid losses of approximately $377,000.

Levoff used his position as a member/co-chairman of Company-1’s Disclosure Committee – which reviewed and discussed the company’s draft quarterly and yearly earnings materials and periodic U.S. Securities and Exchange Commission (SEC) filings before they were disclosed to the public – to obtain material, nonpublic financial information. Levoff used this confidential information by buying and selling stock in Company-1 ahead of its quarterly earnings announcements, which were issued to the public via press releases. When Levoff discovered that Company-1 had posted strong revenue and net profit for a given financial quarter, he purchased large quantities of stock, which he later sold for a profit once the market reacted to the news. When Levoff learned that Company-1 had posted lower-than-anticipated revenue and net profit, he sold large quantities of Company-1 stock, avoiding significant losses.

Levoff was subject to Company-1’s regular quarterly “blackout periods,” which prohibited individuals who had access to material nonpublic information from engaging in trades until a certain period after the company disclosed its financial results to the public. Levoff ignored this restriction, as well as the company’s broader Insider Trading Policy – which Levoff participated in revising – and instead repeatedly executed trades based on material, nonpublic information without the company’s knowledge or authorization. On several occasions, he executed trades within a blackout period after notifying other individuals subject to the restriction that they were prohibited from buying or selling Company-1 stock until the blackout period terminated.

For example, in July 2015, Levoff sold more than 77,000 shares of Company-1 stock in multiple accounts he controlled after he received Company-1’s draft earnings materials and draft SEC filing for the third quarter of financial year 2015 (Q3 2015) and after he participated in a Disclosure Committee meeting. By selling off his shares, Levoff avoided a loss of approximately $345,000 when Company-1 later publicly disclosed revenue and profit below what many analysts had predicted.

Levoff’s trades on other occasions resulted in profits of approximately $227,000; he also avoided additional losses of approximately $32,000.

The securities fraud count carries a potential penalty of 20 years in prison and a $5 million fine.

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

U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, with the investigation. He also thanked the SEC for the assistance provided by its Enforcement Division and Company-1, which cooperated with law enforcement over the course of the investigation.

The government is represented by Senior Trial Counsel Jamari Buxton and Chief Daniel Shapiro of the U.S. Attorney’s Office’s Economic Crimes Unit.

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

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

CAMDEN, N.J. – A Pennsylvania woman today admitted unlawfully distributing prescription opioid pain medication in the Philadelphia and South Jersey areas, U.S. Attorney Craig Carpenito announced.

Nancy Ayres, 45, a/k/a “Nancy Esslinger,” of Upper Chichester, Pennsylvania, pleaded guilty before U.S. District Judge Renee Marie Bumb in Camden federal court to an information charging her with one count of distributing and possessing with intent to distribute oxycodone. Ayres was previously arrested and charged by criminal complaint on Aug. 27, 2018.

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

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

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

The charge of unlawful oxycodone distribution carries a maximum penalty of 20 years of in prison and a fine of up to $1 million. Sentencing is scheduled for May 20, 2019.

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

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

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

TRENTON, N.J. – A certified Occupation Safety and Health Administration training agent today admitted submitting false reports and selling fraudulent training cards to carpenters to improperly establish that they were certified in safety standards, U.S. Attorney Craig Carpenito announced.

Mark Dropala, 42, of Middle Village, New York, pleaded guilty before U.S. District Judge Brian Martinotti in Trenton federal court to an information charging him with one count of making and using false OSHA documents.

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

“OSHA 10” training is a program for construction workers, including carpenters and laborers, to provide knowledge and skills in occupational safety standards. One of the focuses of the course is safety regulations for electrical equipment and scaffolding construction to help prevent injuries and deaths to construction workers.

Dropala was certified by OSHA’s Outreach Training Program (OTP), authorized through OSHA’s Training Organization at Rutgers University in New Brunswick, New Jersey. He was authorized to issue OSHA 10 cards that proved to employers that the holder of the card had taken and passed a 10-hour OTP training course. Instead, Dropala sold in excess of 100 false OSHA 10 cards for approximately $200 per card.

The count to which Dropala pleaded guilty carries a maximum potential penalty of five years in prison and a $250,000 fine. Sentencing is scheduled for July 2, 2019.

U.S. Attorney Carpenito credited special agents of the Port Authority of New York and New Jersey, under the direction of Inspector General Michael Nestor, and U.S. Department of Labor, Office of Inspector General, under the direction of Special Agent in Charge Michael Mikulka, with the investigation leading to today’s guilty plea.

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

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

Mitchell Bleicher, 52, pleaded guilty before U.S. District Judge Robert B. Kugler in Camden federal court to an information charging him with one count each of wire fraud, money laundering, and income tax evasion.

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

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

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

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

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

The count of wire fraud to which Bleicher pleaded guilty carries a maximum potential penalty of 20 years in prison and a $250,000 fine. The count of money laundering carries a maximum penalty of 10 years in prison and a fine of $250,000. The count of income tax evasion carries a maximum potential penalty of five years in prison and a fine of $250,000. Sentencing is scheduled for May 17, 2019.

U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Michael T. Harpster in Philadelphia; and special agents of IRS - Criminal Investigation, under the direction of Special Agent in Charge John R. Tafur, with the investigation leading to today’s guilty plea.

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

Defense counsel: Robert E. Welsh Esq., Philadelphia

Yesterday, an Elizabeth, New Jersey, biodiesel fuel company was sentenced for discharging more than 45,000 gallons of wastewater from its commercial biodiesel fuel production facility into the Arthur Kill, a waterway separating New Jersey from Staten Island, New York, announced the Department of Justice and the U.S. Environmental Protection Agency (EPA). The company had pleaded guilty in June 2018 to one count of violating the Clean Water Act.

Fuel Bio One LLC was sentenced by U.S. District Judge William J. Martini to pay a criminal fine of $100,000. The company was also sentenced to probation for a period of five years, during which the company must (1) provide biannual reports to the court and the government documenting its waste generation, handling, and disposal practices; (2) develop, implement, and fund an employee training program to ensure that all employees are aware of proper waste handling and disposal practices and to ensure that all storage, treatment, and disposal of wastewater complies with the Clean Water Act; and (3) allow the EPA full access to all offices, warehouses, and facilities owned or operated by the company.

“Staten Island Sound (also known as the Arthur Kill) is a vital waterway running between New Jersey and Staten Island. Once heavily polluted and nearly devoid of marine life, this waterbody is making a comeback and again provides habitat to many species of fish and wildlife,” said Assistant Attorney General Jeffrey Bossert Clark for the Justice Department’s Environment and Natural Resources Division. “Illegal dumping of pollution into the Sound not only violates federal law, but also threatens the environmental recovery of this historic marine channel, which is important to New Yorkers and New Jerseyans alike. The Justice Department will continue to work closely with EPA Criminal Investigation Division to prosecute illegal actions like those in this case.”

“Protecting the environment and our natural resources is one of the many ways this office works to keep New Jersey safe for everyone,” said U.S. Attorney Carpenito for the District of New Jersey. “The sentence imposed yesterday as a result of Fuel Bio One’s previous guilty plea ensures that the company will be punished for its past crimes, and the plea agreement puts in place a plan to ensure they don’t pollute our waterways in the future.”

“Fuel Bio One undercut a level playing field when they illegally discharged polluted wastewater into the Arthur Kill,” Special Agent in Charge Tyler Amon of EPA’s Criminal Investigation Division in New Jersey said. “This judicial action demonstrates EPA’s commitment to protecting New Jersey’s environment and ensuring that all companies play by the rules to keep pollutants out of the state’s natural resources.”

According to court documents filed in this case and statements made in court, Fuel Bio One generated wastewater that included methanol, biodiesel, and other contaminants as a byproduct of biodiesel fuel production at its Elizabeth, New Jersey, plant. On Sept. 6, 2013, and Nov. 9, 2013, employees of Fuel Bio One released approximately 45,000 gallons of wastewater into a storm water pit at the Elizabeth plant, causing the pump to operate and, as a result, wastewater to be discharged into the Arthur Kill. A representative of Fuel Bio One admitted to this conduct in court yesterday.

Assistant Attorney General Clark and U.S. Attorney Carpenito credited special agents of the EPA, under the direction of Special Agent in Charge Amon, with the investigation leading to yesterday’s sentence.

The Government is represented by Trial Attorney Adam Cullman of the Environmental Crimes Section and Assistant U.S. Attorney Kathleen P. O’Leary of the U.S. Attorney’s Office Health Care and Government Fraud Unit in Newark.

NEWARK, N.J. – An Ohio man admitted today he robbed a mobile communications company retail store in Orange, New Jersey, at gunpoint in June 2016, U.S. Attorney Craig Carpenito announced.

Frederick A. White, 46, pleaded guilty to one count of Hobbs Act robbery and one count of brandishing a firearm during a crime of violence before U.S. District Judge Claire C. Cecchi in Newark federal court after opening statements in his trial had concluded.

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

On the afternoon of June 11, 2016, White entered a mobile communications company retail store in Orange wearing a wig and brandishing a handgun. White stole cash from an employee of the store and fled. He was arrested a short while later after a foot pursuit by the Orange Police Department. 

White previously was convicted of multiple counts of armed and attempted carjacking and discharging a firearm during a crime of violence in federal court in Newark in 1993.

Pursuant to the terms of the parties’ agreement, White will be sentenced to a term of imprisonment of 25 years and one day, followed by a term of supervised release of five years.

U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, and the Orange Police Department, under the direction of Director Todd Warren and Chief Law Enforcement Officer Vincent Vitiello, for their assistance with the investigation leading to today’s guilty plea. He also thanked the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Theodore N. Stephens 2nd, for its assistance.

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

NEWARK, N.J. – A Hewlett, New York, man and a Haledon, New Jersey, woman appeared in federal court today on fraud charges for allegedly extorting customers of their moving company, U.S. Attorney Craig Carpenito announced.

Lior Atiyas, 42, a/k/a “David Cohen,” and Lola Larios 36, a/k/a “Michelle Jacobs,” are each charged by complaint with one count of conspiracy to commit wire fraud. They both made their initial appearance today before U.S. Magistrate Judge Michael A. Hammer in Newark federal court.

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

From as early as January 2016 through January 2019, Atiyas and Larios conspired to extort customers of their moving company to pay drastically increased fees for moving services once the customers were in a vulnerable state and unable to refuse their demands. Atiyas and Larios carried out the conspiracy by using their moving company, Premier Relocations LLC, and other fraudulently created moving companies, to quote customers “low-ball” price estimates for moving household goods. Once the customers’ goods were loaded onto the moving trucks, Premier employees, at the direction of Atiyas and Larios, would drastically raise the price of the move (often two or three times that of the quoted estimate), and then refuse to deliver the goods until the customers paid the increased price. The aggregate difference between the initial estimates and the revised amounts charged to victims is estimated at more than $400,000.

The charge of conspiracy to commit wire fraud carries a maximum potential penalty of 20 years in prison, and a fine of $250,000, or twice the gross gain to the defendants or loss to the victims.

U.S. Attorney Carpenito credited special agents with the Department of Transportation, Office of the Inspector General, under the direction of Special Agent in Charge Douglas Shoemaker, Northeast Region, with the investigation leading to these charges.

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

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

Defense counsel: Atiyas: Lance Lazzaro Esq., Brooklyn, New York
Larios: Peter Carter Esq., Assistant Federal Public Defender, Newark

NEWARK, N.J. – An Old Bridge, New Jersey, man was sentenced today to 20 months in prison for his role in a large scheme to defraud the Metropolitan Transit Authority’s health benefits plan of more than $2.8 million for the billing of medically unnecessary compounded prescriptions, U.S. Attorney Craig Carpenito announced.

Enver Kalaba, 37, a bus driver with the MTA, previously pleaded guilty before U.S. District Judge John Michael Vazquez to an information charging him with conspiracy to commit health care fraud. Judge Vazquez imposed the sentence today in Newark federal court.

According to documents filed in this case and statements made in court: Kalaba admitted that as early as April 2016 through August 2017 he participated in a scheme to defraud the MTA’s health benefits plan, a privately funded health plan, by knowingly causing the billing of fraudulent claims for medically unnecessary prescription compounded medications, such as scar creams, pain creams, and metabolic supplements. Kalaba was recruited into the scheme by another former MTA bus driver, Christopher Frusci, 34, of Staten Island, New York. Both Frusci and Kalaba were “sales representatives” of Company A, a New Jersey marketing company of compounded prescriptions.

Kalaba and Frusci targeted MTA employees because the MTA’s health benefits’ plan covered compounded medications. To convince MTA beneficiaries to obtain medically unnecessary compounded prescriptions, Kalaba paid them monthly cash bribes of approximately $100 per prescription. To ensure physicians prescribed compounded medications regardless of medical necessity, Kalaba referred MTA beneficiaries to telemedicine physicians who were paid by Company A and its affiliates.

Kalaba was also sentenced to one year of supervised release, and must forfeit $138,630 in criminal proceeds he received for his role in the scheme and pay restitution of $2.9 million.

On March 2, 2018, Frusci pleaded guilty before Judge Vazquez for his role in the scheme and is scheduled for sentencing on March 27, 2019.

U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark; the U.S. Department of Defense, Defense Criminal Investigative Service, under the direction of Special Agent in Charge Leigh-Alistair Barzey; and the Office of the Inspector General, Metropolitan Transportation Authority, under the direction of Inspector General Barry Kluger, with the ongoing investigation leading to today’s sentencing.

The government is represented by Assistant U.S. Attorney Erica Liu of the United States Attorney’s Office.

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

TRENTON, N.J. – A Bronx, New York, man and woman today admitted their roles in a month-long scheme to advertise and provide a minor for sexual acts for money, U.S. Attorney Craig Carpenito announced.

Richard Ortiz, 23, a/k/a “Ace,” and Gabriella Colon, 19, both of Bronx, New York, pleaded guilty before U.S. District Judge Freda L. Wolfson in Trenton federal court to informations charging them with conspiracy to commit sex trafficking of a child.

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

From January 2018 through February 2018, Ortiz and Colon recruited, enticed, and advertised Victim-1, knowing that Victim-1 was less than 18 years old and would be caused to engage in one or more commercial sex acts. Colon and Ortiz acknowledged having transported Victim-1 from New York into New Jersey and Colon admitted to photographing Victim-1 in various states of undress and posting the photographs on a website advertising Victim-1 for sexual services. Colon and Ortiz admitted collecting money from numerous individuals who paid to have sexual relations with Victim-1.

The count to which Ortiz and Colon pleaded guilty carries a maximum term of life imprisonment. Sentencing for Colon is scheduled for May 13, 2019, and for Ortiz, May 14, 2019.

U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark; and detectives with the Middlesex County Prosecutor’s Office, under the direction of Prosecutor Andrew Carey, with the investigation leading to today’s guilty pleas. He also thanked the East Brunswick and Fort Lee, New Jersey, police departments for their assistance.

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

Defense counsel: Ortiz: Olubukola Adetula Esq., Irvington, New Jersey
Colon: Candace Hom Esq., Assistant Federal Public Defender, Newark

NEWARK, N.J. – An Elizabeth, New Jersey, biodiesel fuel company was sentenced today for discharging more than 45,000 gallons of wastewater from its commercial biodiesel fuel production facility into the Arthur Kill, a narrow waterway that separates New Jersey from Staten Island, New York, U.S Attorney Craig Carpenito announced.

Fuel Bio One LLC was sentenced by U.S. District Judge William J. Martini to pay a criminal fine of $100,000. The company was also sentenced to probation for a period of five years, during which the company must: provide biannual reports to the Court and the Government documenting its waste generation, handling and disposal practices; develop, implement, and fund an employee training program to ensure that all employees are aware of proper waste handling and disposal practices and to ensure that all storage, treatment and disposal of wastewater complies with the Clean Water Act; and allow U.S. Environmental Protection Agency full access to all offices, warehouses and facilities owned or operated by the company.

Fuel Bio One LLC previously pleaded guilty before U.S. Magistrate Judge James B. Clark 3rd to an information charging it with one count of violating the Clean Water Act, a statute that was enacted to prevent, reduce, and eliminate water pollution in the United States.

“Protecting the environment and our natural resources is one of the many ways this office works to keep New Jersey safe for everyone,” U.S. Attorney Carpenito said. “The sentence imposed today as a result of Fuel Bio One’s previous guilty plea ensures that the company will be punished for its past crimes, and the plea agreement puts in place a plan to ensure they don’t pollute our waterways in the future.”

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

Fuel Bio One generated wastewater that included methanol, biodiesel and other contaminants, as a byproduct of its biodiesel fuel production at its Elizabeth, New Jersey, plant. On Sept. 6, 2013, and Nov. 9, 2013, employees of Fuel Bio One released approximately 45,000 gallons of wastewater into a storm water pit at the Elizabeth plant, causing the pump to operate and, as a result, wastewater to be discharged into the Arthur Kill. A representative of Fuel Bio One admitted to this conduct in court.

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

The Government is represented by Assistant U.S. Attorney Kathleen P. O’Leary of the U.S. Attorney’s Office Health Care and Government Fraud Unit in Newark and Adam Cullman of the Environmental Crimes Section of the U.S. Department of Justice.

NEWARK, N.J. – A Union County, New Jersey, man appeared in federal court today on charges of receiving images of child sexual abuse, U.S. Attorney Craig Carpenito announced.

Andrew Chu, 28, of Garwood, New Jersey, is charged by complaint with one count of receipt of child pornography. He made his initial appearance today before U.S. Magistrate Judge Michael A. Hammer in Newark federal court and was released on $100,000 unsecured bond with home detention and electronic monitoring.

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

In February 2018, Chu downloaded three videos depicting the sexual abuse of children from a child pornography website located on the darknet.

The charge of receipt 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.

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.