District of New Jersey

NEWARK, N.J. – A Paterson, New Jersey, man was sentenced today to 151 months in prison for robbing a TD Bank in Paterson in June 2017 and an Investors Bank in Clifton, New Jersey, in July 2017, U.S. Attorney Craig Carpenito announced.

James M. Chestnut, 63, previously pleaded guilty before U.S. District Judge William H. Walls to an information charging him with two counts of bank robbery. Judge Walls imposed the sentence today in Newark federal court.

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

On June 30, 2017, Chestnut entered a TD Bank in Paterson and handed a teller a note stating “Put 100s and 50s in the envelope. No dye pack.”

On July 5, 2017, Chestnut entered an Investors Bank in Clifton and approached a teller, this time brandishing what appeared to be a firearm. He told the teller to “Open your drawer. Give me your money. All the 100s. Don’t call the cops or I’ll shoot you.”

During the plea, Chestnut also admitted attempting to rob a Chase Bank in Saddle Brook, New Jersey, on July 3, 2017.

In addition to the prison term, Judge Walls sentenced Chestnut to three years of supervised release.

U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, with the investigation leading to today’s sentencing. He also thanked the Paterson Police Department, under the direction of Director Jerry Speziale; the Saddle Brook Police Department, under the direction of Chief Robert Kugler; the Clifton Police Department, under the direction of Chief Mark Centurione; and the Passaic Police Department, under the direction of Chief Luis A. Guzman, for their assistance.

In addition, the investigation was aided by the FBI Violent Crime Task Force, which is comprised of law enforcement personnel from the Bergen County Prosecutor’s Office, the Passaic County Prosecutor’s Office, the Roxbury Police Department, the Paterson Police Department, and the N.J. State Police.

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

Defense counsel: Patrick McMahon Esq., Assistant Federal Public Defender, Newark

NEWARK, N.J. – A former broker and investment adviser today admitted stealing millions of dollars from his clients in order to pay for personal expenses, U.S. Attorney Craig Carpenito announced.

Gary Basralian, 70, of Springfield, 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 wire fraud and one count of investment adviser fraud.

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

Basralian was a registered broker who provided investment adviser services to clients and received compensation for advising them about investing in, purchasing, or selling securities. From 1989 until December 2017, he was registered with the Financial Industry Regulatory Authority (FINRA), or its predecessors, as working at “Securities Firm A,” a registered investment adviser and broker-dealer with its principal place of business in Jersey City, New Jersey. Securities Firm A provided a broker-dealer platform for more than 2,000 independent financial advisers across the United States.

From July 2007 through November 2017, Basralian defrauded his clients by falsely telling them that he would invest their money in securities and other investments when, in fact, he misappropriated those funds and used them for his own personal expenditures – including payments on a BMW automobile and tens of thousands of dollars in credit card bills.

In one instance Basralian wired money from at least one victim client’s investment account at Securities Firm A to various accounts that he controlled and used the proceeds for his own benefit. When the victim asked why the account had diminished in value, Basralian sent the victim a phony spreadsheet showing that the money was being invested as loans to various companies and would be paid back with interest.

Basralian admitted stealing at least $2 million.

The wire fraud count carries a maximum potential penalty of 20 years in prison and $250,000 fine, or twice the gross gain or loss from the offense. The investment adviser fraud count carries a maximum potential penalty of five years in prison and a $10,000 fine, or twice the gross gain or loss from the offense. Sentencing is scheduled for Dec. 3, 2018.

On May 22, 2018, the N.J. Bureau of Securities in the Office of the N.J. Attorney General issued a summary revocation order against Basralian that revoked his agent and investment adviser representative registrations.

U.S. Attorney Carpenito credited postal inspectors of the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge Judy Ramos, and special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie, with the investigation leading to today’s guilty plea. He also thanked the N.J. Bureau of Securities, under the direction of Bureau Chief Christopher Gerold, for its assistance.

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

Defense counsel: Samuel Braverman Esq., New York

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

Barry Goldstein, 46, of Bergenfield, New Jersey, was arrested at his home. He is charged by complaint with one count of distributing child pornography. Goldstein made his initial appearance before U.S. Magistrate Judge Michael A. Hammer this afternoon in Newark federal court.

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

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

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

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

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

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

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

NEWARK, N.J. – A Morris County, New Jersey, man was sentenced today to 97 months in prison for distributing images of child sexual abuse, U.S. Attorney Craig Carpenito announced.

Mark Derzko, 74, of Mine Hill, New Jersey, previously pleaded guilty before U.S. District Judge William H. Walls to an information charging him with one count of distribution of child pornography. Judge Walls imposed the sentence today in Newark federal court.

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

Derzko used a peer-to-peer file-sharing program, which he installed on his computer several years ago, to download videos and images of child sexual abuse. In May, August and September of 2016, law enforcement downloaded more than two dozen videos of child sexual abuse from Derzko’s computer. After executing a search warrant at Derzko’s home in October 2016, agents located more than 2,000 videos and over 8,000 images of child sexual abuse on Derzko’s computers. Derzko admitted that he was making available for others to download videos he had previously saved on his computer.

In addition to the prison term, Judge Walls sentenced Derko to five years of supervised release, ordered him to register as a sex offender and ordered him to pay restitution of $24,000.

U.S. Attorney Carpenito credited special agents with the Department of Homeland Security, Homeland Security Investigations, under the direction of Newark Special Agent in Charge Brian Michael, with the investigation leading to today’s sentencing. He also thanked the Morris County Prosecutor’s Office and the Wharton, New Jersey, Police Department for their assistance with the case.

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

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

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

Christopher Gardiner, 35, of Cranford, New Jersey, with one count of distribution of child pornography and one count of possession of child pornography. He made his initial appearance today before U.S. Magistrate Judge Michael A. Hammer in Newark federal court and was detained.

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

Between March 2018 and June 2018, Gardiner allegedly engaged an undercover agent in an ongoing sexually graphic conversation on a web-based social media application. In a chatroom, Gardiner publicly posted multiple videos depicting the sexual abuse of children and sent similar videos to the undercover agent directly. The complaint also alleges that law enforcement discovered numerous videos of child pornography on Gardiner’s electronic devices when he was arrested at his home.

The charge of distribution of child pornography, for a repeat offender (Gardiner was previously convicted of endangering the welfare of a child and distribution of child pornography in Union County in 2007), carries a mandatory minimum penalty of 15 years in prison, a maximum potential penalty of 40 years in prison, and a $250,000 fine. The charge of possession of child pornography for a repeat offender carries a mandatory minimum of 10 years in prison, a maximum of 20 years in prison, and a $250,000 fine.

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

The government is represented by Special Assistant U.S. Attorney Shawn Barnes 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 considered innocent unless and until proven guilty.

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

TRENTON, N.J. – The sole proprietor of a purported loan modification consulting company was sentenced today to 57 months in prison for fraudulently billing clients more than $400,000 for services that were never performed, U.S. Attorney Craig Carpenito announced.

Jeffrey Halpern, 63, of Hewlett, New York, previously pleaded guilty before U.S. District Judge Peter G. Sheridan to an information charging him with one count of wire fraud. Judge Sheridan imposed the sentence today in Trenton federal court.

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

Between 2009 and 2016, Halpern operated JCK Marketing and solicited business from individuals who were seeking home loan modifications on their residential mortgages. Halpern told these individuals that, for a fee, he would negotiate loan modifications on their behalf.

In actuality, Halpern pocketed the funds but performed little or no actual services in connection with the purported loan modifications. Halpern also repeatedly demanded money for “bank fees” from his victims, even though none of the related financial institutions charged fees for loan modifications. During the relevant time period, Halpern defrauded at least 26 victims of more than $400,000.
 
In addition to the prison term, Judge Sheridan sentenced Halpern to three years of supervised release and ordered to pay $411,000 in restitution.

U.S. Attorney Carpenito credited investigators with the U.S. Attorney’s Office and special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, with the investigation leading to today’s sentencing. He also thanked the New York State Department of Financial Services, under the direction of Superintendent Maria T. Vullo; the Federal Housing Finance Agency Office of the Inspector General, under the direction of Mark Higgins; and the Nassau County District Attorney’s office, under the direction of District Attorney Madeline Singas, for their assistance.

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

Defense counsel: Mitchell C. Elman Esq., Port Washington, New York

CAMDEN, N.J. – A New York man is scheduled to appear in court today on charges of selling dangerous designer drugs, fentanyl, and oxycodone over the Internet, U.S. Attorney Craig Carpenito announced.

Shadab Chowdhury, 26, of Brooklyn, New York, is charged by complaint with eight counts of distributing and possessing with intent to distribute synthetic cannabinoids; one count of distributing and possessing with intent to distribute fentanyl; and one count of distributing and possessing with intent to distribute oxycodone. He was arrested Aug. 20, 2018, and appeared in Brooklyn federal court. He is scheduled to appear today before U.S. Magistrate Judge Joel Schneider in Camden federal court.

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

Chowdhury allegedly distributed synthetic cannabinoids, fentanyl, and oxycodone over two years by communicating with customers over three Internet websites, two email accounts, and text messages. His customers included undercover law enforcement officers located in New Jersey, New York, Kansas, North Carolina, South Dakota, West Virginia, Georgia, Ohio, Alaska, California, and Virginia.

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

Each of the 10 charges in the complaint carries a maximum potential penalty of 20 years in prison and a $1 million fine.

U.S. Attorney Craig Carpenito credited special agents with the Drug Enforcement Administration’s Tactical Diversion Squad in the Camden Resident Office, under the direction of Special Agent in Charge Valerie A. Nickerson, with the investigation leading to today’s arrest.

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

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

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

NEWARK, N.J. – A man from the Dominican Republic today admitted his role in a conspiracy to distribute three kilograms of cocaine by bringing the drugs into the United States concealed in airline neck pillows, U.S. Attorney Craig Carpenito announced.

Rafael Francisco Bautista Perdomo, 21, pleaded guilty before U.S. District Judge Stanley R. Chesler in Newark federal court to a superseding information charging him with one count of conspiracy to possess with intent to distribute more than 500 grams of cocaine.

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

On Oct. 11, 2017, Perdomo and a conspirator arrived at Newark Liberty International Airport on a flight from Las Americas International Airport in Santo Domingo, Dominican Republic. Both passengers brought neck pillows with them onto the flight as carry-on items.

During a routine Customs and Border Protection (CBP) screening of baggage at Newark Liberty International Airport, law enforcement discovered approximately three kilograms of cocaine sewn inside the neck pillows that Perdomo and his conspirator were carrying.

The count of conspiracy to possess with intent to distribute more than 500 grams of cocaine penalty carries a mandatory minimum penalty of five years in prison, a potential maximum of 40 years in prison, and a $5 million fine. Sentencing is scheduled for Dec. 12, 2018.

U.S. Attorney Carpenito credited special agents of U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI), New Jersey Division, under the direction of Special Agent in Charge Brian Michael; and officers of U.S. Customs and Border Protection, New York Field Office, under the direction of Acting Director of Field Operations Francis J. Russo, with the investigation leading to today’s guilty plea.

The government is represented by Assistant U.S. Attorney Ari B. Fontecchio of the U.S. Attorney’s Office Organized Crime and Drug Enforcement Task Force / Narcotics Unit in Newark.

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

Total of 27 Individuals Charged to Date

NEWARK, N.J. – Sixteen people were charged today in connection with their alleged roles in a drug trafficking organization that distributed heroin and crack cocaine in Newark, U.S. Attorney Craig Carpenito announced.

Anthony Brinson, 27; Kayron Caldwell, 26; Calvin Cheek, 47; Murad Fleming, 18; Sherod Green, 25; Furad Loyal, 30; Jaquwin Marlin, 30; Khalif Nash, 20; Zahir Nash, 19; Dimani Newby, 25; Nasir Sanders, 21; Shawn Scott, 32; Kahlid Windley, 31; Stephan Young, 19; all of Newark, and Jeray Alson, 28; of Vauxhall, New Jersey, are each charged by complaint with one count of conspiracy to distribute and possess with the intent to distribute one kilogram or more of heroin. Loyal was additionally charged with one count of illegal possession of a firearm and one count of possession of a firearm in furtherance of a drug trafficking crime. Sean Collins, 50, of East Orange, New Jersey, was charged with one count of conspiracy to distribute and possess with the intent to distribute 280 grams of more of cocaine base, or “crack” cocaine.

Nine of the defendants are currently in custody, six of whom – Cheek, Loyal, Marlin, Scott, Windley and Young – are scheduled to appear before U.S. Magistrate Judge Leda Dunn Wettre in Newark federal court today.

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

The defendants are allegedly members of a drug trafficking organization that sold heroin and crack cocaine in and around Newark, specifically Hayes Street and 14th Avenue in the area of the New Community Corp. (NCC) community development. The organization also supplied drugs to customers and other distributors elsewhere. The organization is comprised of members of the Brick City Brim set of the Bloods street gang

On March 5, 2018, 11 defendants, including Keith Herd, the alleged leader of the organization were charged in connection with the investigation. On Aug. 1, 2018, Martin Pettiford, 23, pleaded guilty to one count of conspiracy to distribute and possess with the intent to distribute heroin. The charges against the other individuals remain pending.

The investigation revealed that in addition to selling narcotics, Herd and the other members of the organization alerted each other to police and rival gang member or drug dealer presence within NCC, shared narcotics supply, narcotics proceeds, and customers, and raised bail money for each other. Members of the organization have also engaged in violence and been the subject of violence in connection with their narcotics trafficking activities.

An investigation led by the FBI used physical and video surveillance, confidential informants, cooperating witnesses, dozens of controlled narcotics purchases, record checks, narcotics seizures, including of heroin, and multiple telephone wiretaps to uncover the operations of the drug trafficking organization.

The drug trafficking conspiracy counts carry a mandatory minimum penalty of 10 years in prison, a maximum potential penalty of life in prison, and a $10 million fine. The illegal possession of a firearm count carries a maximum potential penalty of 10 years in prison and a $250,000 fine. The possession of a firearm in furtherance of a drug trafficking crime count carries a mandatory minimum penalty of five years in prison, which must run consecutively to any other sentence imposed.

U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, and members of the Newark Department of Public Safety, under the direction of Director Anthony F. Ambrose, with the investigation leading to the charges.

He also thanked the Essex County Prosecutor’s Office, the Essex County Sheriff’s Office, the N.J. Department of Corrections, N.J. State Parole Board, and the U.S. Marshals for their assistance.

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

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

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

NEWARK, N.J. – A Jersey City, New Jersey, man today admitted his role in a cocaine distribution conspiracy operating in Jersey City, U.S. Attorney Craig Carpenito announced.

Rayfeal Roman, 34, pleaded guilty before U.S. District Judge Kevin McNulty in Newark federal court 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.

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.

On Feb.7, 2018, 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.

The distribution conspiracy charge carries a mandatory minimum penalty of five years in prison, a maximum of 40 years in prison, and a $5 million fine. Sentencing is scheduled for Dec. 20, 2018.

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 Valerie A. Nickerson, with the investigation leading to today’s guilty plea.

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

Defense counsel: Gerald Krovatin Esq., Newark

CAMDEN, N.J. - A Hammonton, New Jersey, man was sentenced today to 108 months in prison for engaging in a conspiracy to distribute 50 grams or more of crystal methamphetamine in Atlantic County, New Jersey, U.S. Attorney Craig Carpenito announced.

Ignacio Cuesta, 42, of Atlantic City, New Jersey, previously pleaded guilty before U.S. District Judge Noel Hillman in Camden federal court to an information charging him with one count of conspiracy to distribute and to possess with intent to distribute 50 grams or more of methamphetamine.

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

Cuesta was arrested on June 24, 2016, in Hammonton, New Jersey, after agreeing to sell two pounds of crystal methamphetamine to an undercover narcotics detective. The two pounds of crystal methamphetamine were seized from Cuesta’s Ford Expedition, along with approximately $9,000 in cash. Several additional pounds of crystal methamphetamine possessed by Cuesta were found hidden in vehicles and buried in a bucket in the ground in a parking lot for a local business in Hammonton. Law enforcement officers also recovered additional cash inside the trunk of a vehicle owned and used by Cuesta, which was parked in the same parking lot in Hammonton. The total seized from Cuesta and this property was more than $100,000.

In addition to the prison term, Judge Hillman sentenced Cuesta to five years of supervised release. As part of the plea agreement, Cuesta agreed to forfeit all of the cash and two vehicles that were seized on the day of the arrest.

U.S. Attorney Carpenito credited special agents with the Drug Enforcement Administration, under the direction of Special Agent in Charge Valerie A. Nickerson in Newark, with the investigation. He also thanked the Camden County Prosecutor’s Office, under the direction of Prosecutor Mary Eva Colalillo, for its assistance.

The government is represented by Assistant U.S. Attorney Patrick C. Askin of the U.S. Attorney’s Office’s Criminal Division in Camden.

Defense counsel: Patrick Duffy Esq., Audubon, Pennsylvania

NEWARK, N.J. – A Sunnyside, Washington, resident was sentenced today to 151 months in prison for his role in a drug-trafficking conspiracy that ended in February 2017 with the seizure of 15 kilograms of cocaine in a parking lot in Burbank, California, U.S. Attorney Craig Carpenito announced.

Efrain Cardenas Alcaras, 41, was charged in the District of New Jersey with conspiracy to distribute more than five kilograms of cocaine. His case was later transferred to the Central District of California in Los Angeles, where Alcaras pleaded guilty to an indictment before U.S. District Judge Philip S. Gutierrez. He was charged with at least three other people, two of whom have been sentenced in New Jersey by U.S. District Judge William H. Walls in Newark federal court.

According to documents filed in this case and statements made in court: From Aug. 31, 2016, through Feb. 8, 2017, law enforcement officers were monitoring communications between one of Alcaras’ co-defendants and others. Those communications led to law enforcement officers seizing approximately one kilogram of cocaine that a co-defendant had sold to another individual in California on Sept. 26, 2016. The cocaine was intended to be delivered to New Jersey.

On Feb. 8, 2017, in Burbank, California, law enforcement officers observed as Alcaras and his conspirators met with another individual in the parking lot of a retail establishment. The conspirators arrived in two vehicles, a black Jeep and a white sedan. Alcaras was driving the black Jeep, which was determined to contain the illegal narcotics. Approximately 15 kilograms of cocaine and a .380 caliber firearm were recovered from the scene.

In addition to the prison term, Judge Gutierrez sentenced Alcaras 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, with the investigation leading to today’s sentencing.

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

Defense counsel: Humberto Diaz Esq., Los Angeles, California

NEWARK, N.J. – A Totowa, New Jersey, man today admitted knowingly possessing a firearm as a previously convicted felon and trying to bring a loaded gun onto a plane, U.S. Attorney Craig Carpenito announced.

Laron L. James, a/k/a/ “Juelz Santana,” 36, pleaded guilty before U.S. District Judge Stanley R. Chesler to both counts of an indictment charging him with possession of a firearm by a convicted felon and carrying a weapon on an aircraft. 

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

James admitted that on March 9, 2018, he knowingly possessed a loaded Derringer .38 caliber handgun despite the fact he was prohibited from possessing firearms due to his December 2012 conviction in Bergen County Superior Court for manufacturing and distributing a controlled dangerous substance. James also admitted that on that date, he attempted to bring the loaded gun onto a flight from Newark to San Francisco. The gun was discovered during the X-Ray screening of James’s luggage before he could board the flight. 

Both charges in the indictment carry a maximum potential penalty of 10 years in prison. Sentencing is scheduled for Dec. 12, 2018.

U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory Ehrie in Newark, and officers of the Port Authority Police Department, under the direction of Superintendent Edward Cetnar, with the investigation leading to today’s guilty plea.   

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

Defense counsel: Brian J. Neary Esq., Hackensack, New Jersey

NEWARK, N.J. – A Metuchen, New Jersey, man was arrested today for allegedly smuggling shipments of live protected scorpions, giant millipedes and other species that were mislabeled to avoid detection, including one package of millipedes that was labeled as children’s toys, U.S. Attorney Craig Carpenito announced. 

Wlodzimie Lapkiewicz, 29, is charged by complaint with one count of smuggling wildlife and one count of false labelling of wildlife. He appeared this afternoon before U.S. Magistrate Judge Cathy L. Waldor in Newark federal court and was released on $50,000 unsecured bond. 

According to the complaint: 

Between July 2015 and July 2018, Lapkiewicz repeatedly engaged in the illegal importation and exportation of scorpions, giant millipedes, and other invertebrate species. On multiple occasions, Lapkiewicz imported emperor and dictator scorpions, both of which are listed in the Convention on International Trade in Endangered Species treaty as protected species. 

Postal inspectors learned of Lapkiewicz’s illegal imports after they found live scorpions and giant millipedes that had escaped from a parcel originating from Tanzania while in transit to Lapkiewicz in July 2015. 

The investigation revealed that Lapkiewicz participated and assisted others in intentionally mislabeling parcels of live wildlife to avoid detection, including labeling a shipment of multiple live giant millipedes as “Plush Toys for my Friends Child about to be born.” The investigation also revealed that Lapkiewicz used social media to arrange buyers for the scorpions, giant millipedes, and other invertebrates that he illegally imported. 

The charge of wildlife smuggling carries a maximum potential penalty of 20 years in prison and a $250,000 fine. The charge of false labelling of wildlife carries a maximum potential penalty of five years in prison and a $250,000 fine. 

U.S. Attorney Carpenito credited special agents of the U.S. Fish and Wildlife Service, Office of Law Enforcement, under the direction of Special Agent in Charge Honora Gordon, with the investigation leading to these charges. He also thanked postal inspectors with the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge Judy Ramos, for their assistance.

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

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

NEWARK, N.J. – Special Agents of the Department of Homeland Security, Homeland Security Investigations (HSI) arrested a Middlesex County, New Jersey, man this morning for allegedly trying to fraudulently obtain citizenship, U.S. Attorney Craig Carpenito announced.

Pal Singh, a/k/a “Surinder Singh,” a/k/a “Harpal Singh,” 66, an Indian national residing in Iselin, New Jersey, is charged by criminal complaint with one count of naturalization fraud and one count of making false statements under oath in connection with naturalization proceedings. He made his initial appearance before U.S. Magistrate Judge Cathy L. Waldor and was released on $200,000 bond.

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

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

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

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

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

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

The naturalization fraud charge carries a maximum potential sentence of 10 years in prison. The false statements charge carries a maximum potential sentence of five years imprisonment.

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

The government is represented by Assistant U.S. Attorneys Francisco J. Navarro and Thomas Kearney of the U.S Attorney’s Criminal Division in Newark.

18-275                                                              ###

Defense counsel: Adalgiza A. Nunez Esq., Newark

NEWARK, N.J. – A Jersey City man today admitted that he swindled two investors of $3.4 million by falsely representing that his businesses had secured lucrative contracts to sell olive oil to major retailers, U.S. Attorney Craig Carpenito announced.  

Antonio Fasolino, 62, entered a guilty plea before U.S. District Judge Michael Vazquez in Newark federal court to all four counts of indictment charging him with three counts of wire fraud and one count of transacting in criminal proceeds. Judge Vazquez deferred acceptance of the guilty plea until sentencing, which is scheduled for Jan. 11, 2019.

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

Fasolino owned several companies that were purportedly involved in the manufacture, sale and distribution of pasta, tomato sauce, olive oil and other food products. In 2012, Fasolino obtained approximately $3.4 million from two victims by falsely representing that Fasolino’s companies had been awarded lucrative contracts to sell olive oil. 

In fact, there were never any such contracts. Fasolino supplied the victims with altered bank statements and spent the money on himself, including car and mortgage payments, apartment rentals, a wedding, college tuition and credit card payments.

Each count of wire fraud carries a maximum potential penalty of 20 years in prison. The transacting in criminal proceeds count carries a maximum potential penalty of 10 years in prison. Each charge in the indictment is also punishable by 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 Ehrie in Newark, and IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Bryant Jackson, with the investigation leading to today’s plea.

The government is represented by Executive Assistant U.S. Attorney Zach Intrater and Assistant U.S. Attorney Sarah Devlin of the Assert Forfeiture and Money Laundering Unit.

Defense counsel: Chester Keller Esq., Newark

NEWARK, N.J. – The second-in-command of the New Jersey set of the Grape Street Crips street gang was sentenced today to 540 months in prison for his role in committing a murder, participating in numerous attempted murders, plots to kill a state witness and to kidnap a heroin trafficker, and conspiring to distribute heroin, all as part of a racketeering conspiracy, U.S. Attorney Craig Carpenito announced.

Kwasi Mack, a/k/a “Welches,” 29, previously pleaded guilty before U.S. District Judge Madeline Cox Arleo in Newark federal court to eight counts of the sixth superseding indictment, which charged him with murder and attempted murders as part of a RICO conspiracy, assaults with a dangerous weapon in aid of racketeering, conspiracy to assault with a dangerous weapon, and conspiracy to distribute one kilogram or more of heroin.

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

Mack admitted that as the second-in-command of the NJ Grape Street Crips he committed the following violent acts in furtherance of the RICO conspiracy: 

• In August 2006, Mack used two firearms simultaneously to kill a rival gang-member and, in the process, severely injured an individual who was with the rival.

• On Oct. 10, 2011, during an outdoor cookout, Mack used an assault rifle to attempt to kill a gang-member who had previously cooperated in a murder investigation and whose loyalty to the gang was in question. Mack shot eight individuals, at least two of whom suffered permanent or life-threatening injuries.

• After being charged by the Essex County Prosecutor’s Office with the Oct. 10, 2011, attempted murder, Mack was provided during the discovery process with the identity of the only witness against him. Mack ordered fellow gang-members to kill that witness. Gang-members took substantial steps to carry out Mack’s orders, but the murder never took place.

• In 2013, Mack and others planned to kidnap a major heroin-trafficker in order to rob him.

• On Oct. 5, 2013, Mack ordered the murder of a person identified in the indictment as “Victim-1.” On Oct. 27, 2013, following Mack’s orders, several gang-members repeatedly shot Victim-1 and Victim-4.

• On Oct. 7, 2013, Mack and others participated in the attempted murder of rival gang-members in retaliation for the murder of a fellow gang-member.

Mack also admitted to participating in a conspiracy to distribute one kilogram or more of heroin, possessing firearms in furtherance of the RICO and narcotics conspiracies, using minors to commit these offenses, and engaging in these offenses as a pattern of criminal conduct engaged in as a livelihood.

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

U.S. Attorney Carpenito credited special agents of the Drug Enforcement Administration, under the direction of Special Agent in Charge Valerie A. Nickerson, and special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie, for the investigation leading to today’s guilty plea. He also thanked prosecutors and detectives of the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Robert D. Laurino, police officers and detectives of the Newark Police Department, under the direction of Public Safety Director Anthony F. Ambrose, and the Essex County Sheriff’s Office, under the direction of Armando B. Fontoura, for their work on the investigation.

The government is represented by Assistant U.S. Attorneys Osmar J. Benvenuto and Barry Kamar of the Criminal Division, and Richard J. Ramsay of the Office’s 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 Toms River man today admitted distributing images of child sexual abuse over a social media application, U.S. Attorney Craig Carpenito announced. 

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

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.

The distribution charge carries a minimum penalty of five years in prison, a maximum potential penalty of 20 years in prison and a $250,000 fine. Sentencing is scheduled for Nov. 19, 2018.

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. 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

TRENTON, N.J. – A Manhattan man today admitted robbing banks in Jackson Township, Fort Lee, and Hasbrouck Heights, as well as attempting to burglarize a fourth bank in Englewood between December 2013 and February 2017, U.S. Attorney Craig Carpenito announced.

Eddy Cruz, 42, pleaded guilty before U.S. District Judge Peter G. Sheridan in Trenton federal court to an information charging him with three counts of bank robbery and one count of attempted bank burglary. 

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

On Dec. 24, 2013, Cruz entered a PNC Bank in Jackson Township and handed a bank teller a note demanding money. After the teller handed him some cash, Cruz fled the scene. Cruz also robbed a TD Bank in Fort Lee on Feb. 13, 2017 and a TD Bank in Hasbrouck Heights on Feb. 18, 2017. During both robberies, Cruz wore a mask to disguise his identity and handed the tellers notes demanding cash.

On Feb. 24, 2017, law enforcement officers tracked Cruz’s car, which had been spotted at one of the earlier bank robberies, to a location in Manhattan. That same day, Cruz drove to yet another TD Bank in Englewood where he was apprehended moments before he robbed the bank in a similar disguise to what he wore during the previous two bank robberies.  

The bank robbery and attempted bank burglary counts each carry a maximum potential penalty of up to 20 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. Sentencing is scheduled for Nov. 27, 2018.

U.S. Attorney Carpenito credited special agents with the FBI, under the direction of Special Agent in Charge Gregory Ehrie in Newark and Special Agent in Charge John Brosnan in New York; the Bergen County Prosecutor’s Office, under the direction of Acting Prosecutor Dennis Calo; the Fort Lee Police Department, under the direction of Chief Keith M. Bendul; the Hasbrouck Heights Police Department, under the direction of Chief Michael J. Colaneri; the Roxbury Police Department, under the direction of Chief Marc Palanchi; the Paramus Police Department, under the direction of Chief Kenneth Ehrenberg; and the Jackson Township Police Department, under the direction of Chief Matthew Kunz, with the investigation leading to today’s guilty plea. He also thanked the Greenburgh, New York, Mount Pleasant, New York, and Yonkers, New York, police departments, as well as the New York Police Department for their assistance. 

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

18-272

Defense counsel: Linda Foster Esq., Assistant Federal Public Defender, Newark

TRENTON, N.J. – A North Brunswick, 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.

Henry Abdul, 31, pleaded guilty before U.S. District Judge Peter G. Sheridan in Trenton federal court to an information charging him with one count of conspiracy to commit bank fraud and one count of aggravated identity theft.

According to documents filed in this case and statements made in court:    Between October 2015 and January 2018, Abdul, Alexus Omowole, 22, also of North Brunswick, and others participated in a conspiracy to obtain control of credit card accounts by, among other things, contacting the relevant financial institution and posing as the account owner in order to change the personal information associated with the customer accounts, including the residential address, email address, and telephone number.

Afterwards, members of the conspiracy opened new accounts or ordered replacement cards to be shipped to them without the customers' knowledge or authorization. Abdul’s prior residential address in Newark was used as part of the conspiracy. Afterwards, Abdul, Omowole and others used the compromised credit card accounts to purchase high-value items, including smartphones, tablets, and other electronic devices.

As part of his plea agreement, Abdul admitted that the scheme caused between $250,000 and $550,000 in losses, and involved more than 10 separate 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 Nov. 28, 2018.

On May 21, 2018, Omowole pleaded guilty to conspiracy to commit bank fraud and aggravated identity theft. She is scheduled to be sentenced on Sept.10, 2018.

U.S. Attorney Carpenito credited postal inspectors with the U.S. Postal Inspection Service under the direction of Acting Inspector in Charge Judy Ramos, 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 Nicholas P. Grippo and David M. Eskew, Chief of U.S. Attorney’s Office Health Care and Government Fraud in Newark.

Defense counsel: Patrick McMahon Esq., Assistant Federal Public Defender, Newark

TRENTON, N.J. – An Allentown, Pennsylvania, woman was arrested this morning for allegedly stealing $136,879.24 in social security benefits and over $23,000 in federal student financial aid, U.S. Attorney Craig Carpenito announced.

Martha Aguilar, 56, a former resident of Middletown, New Jersey, is charged by indictment with one count each of theft of government funds, social security fraud, false statements in furtherance of social security fraud, and student loan fraud. She will appear this afternoon before U.S. Magistrate Judge Tonianne J. Bongiovanni in Trenton federal court.

According to the indictment:

From November 2004 to January 2015, Aguilar collected approximately $136,879.24 in social security benefits that she was not entitled to receive. During that time, Aguilar indicated in forms to the Social Security Administration (SSA) that she was completely disabled and unable to work.  

However, Aguilar regularly worked during that 10-year time period as a paralegal for various law firms and attorneys. Aguilar also fraudulently applied for and received temporary disability from the state of New Jersey totaling $13,622 and unemployment benefits from the state of New Jersey totaling $103,738, all of which she concealed from the SSA. Overall, Aguilar failed to report over $470,000 in benefits and income she received from November 2004 to January 2015.  

In addition, Aguilar falsified her son's applications for federal student financial aid by indicating she had no income other than social security benefits. As a result, her son was given $23,195 in federal financial aid that he was not entitled to receive.    

The theft of government funds count is punishable by a maximum potential penalty of 10 years in prison and a $250,000 fine. The false statement and social security fraud counts are each punishable by a maximum potential penalty of five years in prison and a $250,000 fine. The student loan fraud count is punishable by a maximum potential penalty of five years in prison and a $20,000 fine.  

U.S. Attorney Carpenito credited special agents of the SSA, Office of the Inspector General, under the direction of John F. Grasso; the U.S. Department of Education, Office of Inspector General Eastern Regional Office, under the direction of Assistant Special Agent in Charge Debbi Mayer; and the New Jersey Department of Labor & Workforce Development, Division of Fraud Prevention & Risk Management-Special Investigations Unit, with the investigation.

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

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

NEWARK, N.J. – A Newark man made an initial appearance in federal court today on charges of being a convicted felon in possession of a handgun, U.S. Attorney Craig Carpenito announced.

Jamar Battle, 30, was charged by complaint Aug. 10, 2018, with one count of being a convicted felon in possession of a firearm and ammunition. He was arrested on Aug. 11, 2018, and appeared today before U.S. Magistrate Judge Cathy L. Waldor in Newark federal court and ordered detained.

According to the complaint filed in the case:

On July 4, 2018, Battle, who was convicted in 2015 for illegally possessing a firearm, fired a handgun on Avon Avenue in Newark after engaging in a verbal dispute with another person. While the defendant did not hit his intended target, he did hit a 5-year-old child who had been walking down the same street with her father. The child was injured and required medical treatment.

The charge of being a felon in possession of a weapon carries a maximum potential penalty of 10 years in prison and a fine of up to $250,000.

U.S. Attorney Carpenito credited law enforcement officers of the Newark Department of Public Safety, under the direction of Director Anthony F. Ambrose; special agents of the Department of Alcohol Tobacco and Firearms, under the direction of Special Agent in Charge John B. Devito; special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie; and the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Robert D. Laurino, with the investigation leading to the charges.

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

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

NEWARK, N.J. – A Clifton, New Jersey, woman was sentenced today to 18 months in prison for her role in a scheme to defraud a New Jersey-based trucking company of more than $900,000, U.S. Attorney Craig Carpenito announced.   

Lisa Popewiny, 56, previously pleaded guilty before U.S. District Judge Madeline Cox Arleo to Count One of an indictment charging her with wire fraud. Brothers Miguel Vidal, Angel D. Vidal, and Angel Gabriel Vidal previously pleaded guilty to wire fraud charges for their roles in the scheme. Judge Arleo imposed the sentence today in Newark federal court.

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

Popewiny was the payroll clerk at Clifford B. Finkle Jr. Inc., a Clifton company that provided transportation and freight services to various public and private entities located in New Jersey, New York, and elsewhere.  From June 2012 to April 2015, Popewiny, and the Vidals, including Miguel Vidal – a former truck driver for the Company – engaged in a scheme to defraud the company of $920,380. 

Popewiny falsified payroll records in order to generate fraudulent paychecks payable to non-existent employees, including the Vidal brothers. All of the Vidal brothers have admitted to allowing the use of their personal identifying information to generate the fraudulent paychecks.  The three men then converted the fraudulent paychecks, many of which were deposited into their bank accounts and then funneled out of the accounts in cash. Miguel Vidal admitted to recruiting other individuals to provide their personal information so that Popewiny could falsely add them to the payroll. Popewiny input false hours for at least 12 different individuals. The scheme came to light when owners of the company, in an effort to investigate suspected fraud, distributed the payroll checks to employees – a task normally completed by Popewiny. After all of the payroll checks had been distributed, several paychecks remained unclaimed that turned out to be fraudulently issued. 

In addition to the prison term, Judge Arleo sentenced Popewiny to three years of supervised release and ordered to pay $920,379 in restitution and $735,591 in forfeiture.

U.S. Attorney Carpenito credited criminal investigators in the U.S. Attorney’s Office and postal inspectors from the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge Judy Ramos, with the investigation leading to today’s sentencing.

The government is represented by Assistant U.S. Attorney Cari Fais, of the Special Prosecution Division, and Lee M. Cortes Jr., Deputy Chief of the Special Prosecutions Division.

Defense counsel: Christopher D. Adams Esq., Holmdel, New Jersey

NEWARK, N.J. – Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division today announced the formation of the Newark/Philadelphia Regional Medicare Fraud Strike Force (Regional Strike Force), a joint law enforcement effort that brings together the resources and expertise of the Health Care Fraud Unit in the Justice Department’s Criminal Division’s Fraud Section (HCF Unit), the U.S. Attorney’s Offices for the District of New Jersey and the Eastern District of Pennsylvania, as well as law enforcement partners at the FBI, U.S. Department of Health and Human Services Office of the Inspector General (HHS-OIG) and U.S. Drug Enforcement Administration (DEA). 
 
Assistant Attorney General Benczkowski was joined in the announcement by U.S. Attorney Craig Carpenito for the District of New Jersey; U.S. Attorney William M. McSwain for the Eastern District of Pennsylvania; Assistant Director Robert Johnson of the FBI’s Criminal Investigative Division; Deputy Inspector General Gary Cantrell of the Department of Health and Human Services Office of Inspector General (HHS-OIG) and Assistant Administrator John Martin of the DEA.

“The devastation the opioid epidemic is inflicting on communities across the country and here in the Mid-Atlantic region is staggering—and health care fraud has played a role in feeding that epidemic,” said Assistant Attorney General Benczkowski.  “It is estimated that each year tens of billions of dollars in American taxpayer money are lost to fraud, waste, abuse and improper payments. According to the CDC, in 2016, more than 40 percent of all U.S. opioid overdose deaths involved a prescription opioid. Our Medicare Fraud Strike Forces, which we have now expanded into Newark and Philadelphia, constitute one of our most important and effective means for containing these threats to the American people.” 

“New Jersey is home to some of the best healthcare facilities and most successful pharmaceutical companies in the country,” U.S. Attorney Carpenito said.  “Unfortunately, that also means that we offer substantial targets for those who would try to defraud the health care system or try to profit from the misery of people battling addiction to opioids. We’ve already developed one robust unit to go after these criminals, the Healthcare & Government Fraud Unit, and I added another, the Opioids Unit, in February upon rejoining the office as U.S. Attorney. The arrival of the Medicare Fraud Strike Force in our District will serve as an additional force-multiplier and enable us to do even more of these cases, further protecting the citizens of New Jersey from this kind of fraud and abuse.”

“Medicare fraud costs our government billions of dollars,” Special Agent in Charge Gregory W. Ehrie of the Newark FBI Field Office said. “The Medicare Strike Force will aggressively target waste, fraud and abuse in federal health care programs ameliorating the intolerable burden on the taxpayer and Health Care System.”

“The proven-effective Strike Force model combining specialized investigators and prosecutors will no doubt be highly successful in the ongoing fight against health care fraud in the District of New Jersey,” said Scott J. Lampert, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services. “We look forward to working closely with the U.S. Attorney’s Office, Justice Department’s Criminal Division, FBI, DEA, and other law enforcement partners to protect taxpayer-funded federal health care programs and the millions who rely on those benefits.”

“The Newark/Philadelphia Regional Medicare Fraud Strike Force is a great opportunity for collaboration with our partners to share vital information,” Valerie A. Nickerson, Special Agent in Charge of the Drug Enforcement Administration’s New Jersey Division said. “This Strike Force can be an effective tool to combat these crimes by combining the resources of the agencies that are responsible for detecting, enforcing and prosecuting violations of these regulations and laws.”

Prior to this announcement, the HCF Unit operated Medicare Fraud Strike Force’s in 10 cities across the United States including Miami, Florida; Los Angeles, California; Detroit, Michigan; Houston, Texas; Brooklyn, New York; Baton Rouge and New Orleans, Louisiana; Tampa, Florida; Chicago, Illinois; and Dallas, Texas, along with a Corporate Strike Force located in Washington, D.C.  The Strike Forces represent a partnership between the Criminal Division, U.S. Attorney’s Offices, the FBI and HHS-OIG.  

The Regional Strike Force will be made up of prosecutors and data analysts with the HCF Unit, prosecutors with the U.S. Attorney’s Offices for the District of New Jersey and Eastern District of Pennsylvania, and special agents with the FBI, HHS-OIG and DEA.  In addition, the Regional Strike Force will work closely with other various federal law enforcement agencies, including the U.S. Postal Inspection Service and IRS Criminal Investigation, and State Medicaid Fraud Control Units.  The Strike Force will focus its efforts on aggressively investigating and prosecuting cases involving fraud, waste, and abuse within our federal health care programs, and cases involving illegal prescribing and distribution of opioids and other dangerous narcotics.  

In June, Attorney General Jeff Sessions and HHS Secretary Alex M. Azar III noted the success of the Strike Force model while announcing the largest ever health care fraud enforcement action involving 601 charged defendants across 58 federal districts, including 165 doctors, nurses and other licensed medical professionals, for their alleged participation in health care fraud schemes involving more than $2 billion in false billings.  Of those charged, 162 defendants, including 76 doctors, were charged for their roles in prescribing and distributing opioids and other dangerous narcotics. More information can be obtained at https://www.justice.gov/opa/documents-and-resources-june-28-2018. 

The Strike Force operations are part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country.  Since its inception in March 2007, the prosecutors in the 10 Medicare Fraud Strike Force locations have charged over 3,700 defendants who collectively have falsely billed the Medicare program for over $14 billion.

NEWARK, N.J. – A Hoboken man was arrested today while allegedly trying to rob a Cedar Grove bank, U.S. Attorney Craig Carpenito announced.

Frank Meletti, 53, is charged by complaint with one count of attempted bank robbery. He will appear in Newark federal court at a later date.

According to the complaint:

Meletti was previously convicted of bank robbery in June 2009 in the District of New Jersey. He was sentenced to 120 months in prison and five years of supervised release.

In early August 2018, Meletti allegedly asked another individual to act as the getaway driver for an upcoming bank robbery and provided the individual with details about the plan, including the name of the target bank and where to park during the robbery.

On Aug. 9, 2018, Meletti and the other individual went to the Investors Bank in Cedar Grove to investigate whether the bank had an armed guard or other security. Meletti instructed the other individual to pick him up for the bank robbery the following morning.

Earlier today, the individual picked up Meletti at the agreed upon time and asked Meletti if he was sure that he wanted to go through with the plan. Meletti responded affirmatively. During the ride to Cedar Grove, Meletti drafted numerous versions of a demand note that he would use for the robbery.

At approximately 10 a.m., Meletti exited the vehicle from a parking lot adjacent to the bank. He was wearing dark sunglasses, a black hat, and a black sweatsuit, and carrying a bag to hold proceeds from the robbery.

Meletti approached the front entrance to the Investors Bank and attempted to open the exterior door, tugging on it several times and attempting to look through the windows, whereupon he was arrested. The final version of the demand note was recovered from his person and read, “Place money in bag. No dye. No cops. No alarms.”

The attempted bank robbery charge carries a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense.

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 Bureau of Alcohol, Tobacco, Firearms and Explosives, Newark Field Division, under the direction of Special Agent in Charge John B. Devito, with the investigation leading to today’s arrest. He also thanked the Verona and Cedar Grove Police Departments for their assistance.

The government is represented by Assistant U.S. Attorney Matt Feldman of the U.S. Attorney’s Office Public Protection 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. – A Union County, New Jersey, man was sentenced today to 204 months in prison for robbing seven banks – and attempting to rob an eighth bank while brandishing a firearm – committing one carjacking and attempting to commit three additional carjackings, and taking a hostage at gunpoint while fleeing, U.S. Attorney Craig Carpenito announced.

Marlon Peek, 42, of Plainfield, New Jersey, previously pleaded guilty before U.S. District Judge Katharine S. Hayden in Newark federal court to Counts One through 11, 13, 15, and 17 of an indictment. The counts include: seven counts of bank robbery, one count of carjacking, one count of attempted bank robbery with a dangerous weapon, one count of use and brandishing of a firearm during a crime of violence, three counts of attempted carjacking, and one count of forced accompaniment in attempting to avoid apprehension for the attempted armed bank robbery.

Peek robbed or attempted to rob the following New Jersey banks:

Bank

Location

Date

TD Bank

Edison, New Jersey

March 17, 2015

Magyar Bank

Edison, New Jersey

March 31, 2015

Investors Bank

Dunellen, New Jersey

April 9, 2015

Wells Fargo Bank (aiding and abetting)

South Plainfield, New Jersey

April 14, 2015

Unity Bank

Middlesex Borough, New Jersey

April 15, 2015

PNC Bank

South Plainfield, New Jersey

April 21, 2015

TD Bank

Springfield, New Jersey

April 21, 2015

Bank of America (armed attempt)

Linden, New Jersey

May 6, 2015

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

From March 2015 to May 2015, Peek and others committed a string of crimes. At each bank, Peek presented a note demanding cash from bank tellers, including, on at least six occasions, statements that he had a gun and would shoot. During the robbery of the TD Bank in Edison, New Jersey, on March 17, 2015, Peek handed a teller a note that read, in part, “I have gun will shoot to kill you have 3 seconds.” In the course of the attempted robbery of the Bank of America, Peek pointed a loaded firearm directly at a bank teller.

Peek admitted that he committed a carjacking in Plainfield, New Jersey, on April 21, 2015, between robbing the PNC Bank and the TD Bank that day, and that he committed three attempted carjackings using a loaded firearm directly after attempting to rob the Bank of America in Linden on May 6, 2015. He also admitted that in attempting to flee from the attempted robbery of the Bank of America, he entered a warehouse, took a hostage, held a loaded gun to the hostage’s head, and forced the hostage to accompany him. Law enforcement officers arrived on the scene and ordered Peek to drop his gun. Peek then surrendered his weapon and was arrested.

In addition to the prison term, Judge Hayden sentenced Peek to five years of supervised release and ordered him to pay restitution of $21,598.

U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark; and officers of the Linden Police Department, under the direction of Chief David Hart; the Edison Police Department, under the direction of Chief Thomas Bryan; the Dunellen Police Department, under the direction of Chief Jeffrey E. Nelson; the South Plainfield Police Department, under the direction of Chief James Parker; the Middlesex Police Department, under the direction of Chief Matthew P. Geist; the Plainfield Police Department, under the direction of Director Carl Riley; and the Springfield Police Department, under the direction of Chief John Cook with the investigation leading to today’s guilty plea. U.S. Attorney Carpenito also thanked the Union County Prosecutor’s Office, under the direction of Acting Prosecutor Michael A. Monahan, and the Middlesex County Prosecutor’s Office, under the direction of Prosecutor Andrew C. Carey, for their assistance.

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

Defense counsel: Alyssa A. Cimino Esq., Fairfield, New Jersey

WASHINGTON – The former Chief Executive Officer of ConvergEx Global Markets Limited (CGM Limited) pleaded guilty this afternoon in federal court in Newark, New Jersey for his role in a scheme to commit securities and wire fraud from 2006 through 2011. 

Assistant Attorney General Brian A. Benczkowski for the Justice Department’s Criminal Division, U.S. Attorney Craig Carpenito of the District of New Jersey, Assistant Director in Charge Nancy McNamara of the FBI’s Washington Field Office, and Inspector in Charge Peter R. Rendina of the U.S. Postal Inspection Service (USPIS) made the announcement.

Anthony Blumberg, 53, of Short Hills, New Jersey, pleaded guilty before U.S. District Judge Jose L. Linares of the District of New Jersey, in Newark, to one count of conspiracy to commit securities and wire fraud.  Sentencing has been scheduled for Dec. 5 before Chief Judge Linares. 

According to court documents, CGM Limited was a wholly owned subsidiary of ConvergEx Group LLC (“ConvergEx Group”).   As part of his plea today, Blumberg admitted that clients placed orders to buy or sell securities with G-Trade Services LLC and ConvergEx Limited, subsidiaries of ConvergEx Group that offered global trading services to clients, which in turn routed orders to CGM Limited.  Blumberg also admitted that traders at CGM Limited executed the orders and sometimes added a “spread,” (a mark-down on the sale of a security or a mark-up on the purchase of a security) to the prices they had obtained for non-fiduciary clients.  To hide the fact that spread had been taken, on several occasions from 2007 to 2011, Blumberg and traders acting under his direction, acting in response to requests by clients for information that could reveal the existence of spread, sent false reports (known as time and sales reports) to these clients.  The false time and sales reports contained fabricated details regarding the individual transactions, or “fills,” executed during the course of a day to complete a client’s orders, including false information concerning the number of shares involved in a fill, the time at which the fill was executed, and the price at which shares were either purchased or sold.

Blumberg also admitted that he and his co-conspirators agreed to violate a client’s instructions to provide real-time transactional data through an immediate data feed with details of trades that CGM Limited executed for the client by providing “batch fills” that hid the actual information the client sought. 

Blumberg is the fourth individual to plead guilty as a result of the investigation into ConvergEx Group and CGM Limited’s practices.  On Dec. 18, 2013, CGM Limited pleaded guilty to conspiracy to commit securities and wire fraud before Judge Linares.  On the same day, ConvergEx Group entered into a deferred prosecution agreement.  Collectively, the two ConvergEx entities paid $43.8 million in criminal penalties and restitution.

The case is being investigated by the FBI’s Washington Field Office and the Washington, D.C. and New York offices of the U.S. Postal Inspection Service.  The case is being prosecuted by Trial Attorney Gary A. Winters and Assistant Chief Justin D. Weitz of the Criminal Division’s Fraud Section and by Assistant U.S. Attorney Paul Murphy, Chief of the U.S. Attorney’s Office for the District of New Jersey Economic Crimes Unit in Newark.  The Department appreciates the substantial assistance of the Securities and Exchange Commission.

NEWARK, N.J. - The former Chief Executive Officer of ConvergEx Global Markets Limited (CGM Limited) pleaded guilty this afternoon in Newark federal court for his role in a scheme to commit securities and wire fraud from 2006 through 2011.

U.S. Attorney Craig Carpenito of the District of New Jersey, Assistant Attorney General Brian A. Benczkowski for the Justice Department’s Criminal Division, Assistant Director in Charge Nancy McNamara of the FBI’s Washington Field Office, and Inspector in Charge Peter R. Rendina of the U.S. Postal Inspection Service (USPIS) made the announcement.

Anthony Blumberg, 53, of Short Hills, New Jersey, pleaded guilty before Chief U.S. District Judge Jose L. Linares to Count One of a superseding indictment charging him with conspiracy to commit securities and wire fraud. Sentencing is scheduled for Dec. 5, 2018

According to court documents, CGM Limited was a wholly owned subsidiary of ConvergEx Group LLC (ConvergEx Group). As part of his plea today, Blumberg admitted that clients placed orders to buy or sell securities with G-Trade Services LLC and ConvergEx Limited, subsidiaries of ConvergEx Group that offered global trading services to clients, which in turn routed orders to CGM Limited. Blumberg also admitted that Traders at CGM Limited executed the orders and sometimes added a “spread,” (a mark-down on the sale of a security or a mark-up on the purchase of a security) to the prices they had obtained for non-fiduciary clients.

To hide the fact that spread had been taken, on several occasions from 2007 to 2011, Blumberg and traders acting under his direction, acting in response to requests by clients for information that could reveal the existence of spread, sent false reports (known as “time and sales reports”) to these clients. The false time and sales reports contained fabricated details regarding the individual transactions, or “fills,” executed during the course of a day to complete a client’s orders, including false information concerning the number of shares involved in a fill, the time at which the fill was executed, and the price at which shares were either purchased or sold.

Blumberg also admitted that he and his conspirators agreed to violate a client’s instructions to provide real-time transactional data through an immediate data feed with details of trades that CGM Limited executed for the client by providing “batch fills” that hid the actual information the client sought.

Blumberg is the fourth individual to plead guilty as a result of the investigation into ConvergEx Group and CGM Limited’s practices. On Dec. 18, 2013, CGM Limited pleaded guilty to conspiracy to commit securities and wire fraud before Judge Linares. On the same day, ConvergEx Group entered into a deferred prosecution agreement. Collectively, the two ConvergEx entities paid $43.8 million in criminal penalties and restitution. 

The case is being investigated by the FBI’s Washington Field Office and the Washington, D.C. and New York offices of the USPIS. The case is being prosecuted by Trial Attorney Gary A. Winters and Assistant Chief Justin D. Weitz of the Criminal Division’s Fraud Section and by Assistant U.S. Attorney Paul Murphy, Chief of the U.S. Attorney’s Office Economic Crimes Unit in Newark. The Department appreciates the substantial assistance of the Securities and Exchange Commission.

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Defense counsel: Seth L. Levine Esq., New York

CAMDEN, N.J. – An Atlantic County, New Jersey, man employed with the Social Security Administration (SSA) was arrested today for unlawfully accessing the Social Security accounts of individuals and falsifying their records in order to steal government funds for his own use, U.S. Attorney Craig Carpenito announced.

Nicholas Pao, 37, of Egg Harbor Township, New Jersey, was charged by criminal complaint with one count of theft of government funds and five counts of aggravated identity theft. He is scheduled to appear today before U.S. Magistrate Judge Ann Marie Donio in Camden federal court.

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

Pao was a 10-year employee of the SSA who worked as a claims technical expert in the Egg Harbor Township office, 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 allegedly used his SSA credentials to access the confidential records of several individuals without their knowledge or authority. Pao would alter their records and make fraudulent changes that caused the SSA to issue Social Security benefits to these individuals. He then allegedly intercepted these benefits, which were issued by way of a Direct Express account and credit card and used the money without the knowledge or consent of the individuals. Pao has allegedly stolen $99,967 in Social Security funds.

The count of theft of government funds is punishable by a maximum potential penalty of 10 years in prison. The counts of aggravated identity theft are each punishable by a statutory 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. All the counts are also punishable by a fine of up to $250,000, or twice the gain or loss caused by the offense.

Anyone who believes they might have been the victim of this scheme is asked to call the SSA Office of the Inspector General at (888) 487-9917.

U.S. Attorney Carpenito credited special agents of the SSA, Office of the Inspector General, under the direction of John F. Grasso, with the investigation leading to today’s charges.

The government is represented by Special Assistant U.S. Attorney Meriah Russell of the Criminal Division, Trenton.

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

NEWARK, N.J. – A Hoboken man was arrested for allegedly using his cell phone to take a picture underneath a girl’s dress, U.S. Attorney Craig Carpenito announced.

Jeffrey Goldstein, 31, was arrested July 31, 2018 and charged by complaint with one count of violating a voyeurism statute that prohibits photographing a minor’s private area without consent when that individual has a reasonable expectation of privacy. He appeared this afternoon before U.S. Magistrate Judge Joseph A. Dickson in Newark federal court and was released on $25,000 unsecured bond.

According to the complaint:

On July 8, 2018, a cruise ship left Bayonne for Bermuda. Goldstein was a passenger. That evening, a thirteen-year old girl was standing on the deck of the cruise ship facing outward toward the water.

Goldstein allegedly approached the victim and, without her permission, placed his iPhone underneath the skirt of her dress, pointed the camera upward towards the victim’s genitalia and buttocks and took a picture. The victim felt something touch her leg. Goldstein moved to the side of the victim and soon walked away.

A nearby adult saw Goldstein take a photo up the victim’s dress. Cruise ship personnel reviewed surveillance footage of the incident, which confirmed the witness’s account and identified Goldstein as the man in the footage.

Pursuant to a search warrant, the FBI later downloaded the contents of Goldstein’s iPhone and found the photo of the girl, along with several other “up-skirt” images.

Goldstein faces a maximum potential penalty of one year in prison and a $100,000 fine.

The federal government has special maritime jurisdiction. 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.

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

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

Defense counsel: Donald M. Lomurro Esq., Freehold, New Jersey.

NEWARK, N.J. – A former registered investment advisor was arrested today on charges stemming from an investment fraud targeting elderly investors, U.S. Attorney Craig Carpenito announced.

Daniel Rivera, 48, of Hillsborough, New Jersey, was indicted by a federal grand jury on July 31, 2018, on three counts of wire fraud. He is scheduled to appear today before U.S. Magistrate Judge Joseph A. Dickson in Newark federal court.

According to the indictment:

From 2008 through 2017, Rivera allegedly engaged in an investment fraud where he solicited primarily elderly investors to invest their money in a company called Robbins Lane Properties Inc. Rivera told investors the company was staffed by experienced real estate professionals who used investor funds to invest in real estate ventures. Rivera allegedly told investors that by investing in Robbins Lane, senior investors would share in the company’s investment portfolio by lending it money to invest in real estate. Rivera further promised investors that they would receive a guaranteed monthly income, and that the company’s rate of return was based on secure real estate investments in the company’s portfolio. In reality, Robbins Lane had no employees, no real estate portfolio, and the monies used to pay investors as a purported return on their investments was from funds he received from other investors. Rivera allegedly also used funds sourced from investors to pay his personal and unrelated business expenses, including paying his child’s college tuition and sorority fees.

The counts of wire fraud with which Rivera is charged each carry a maximum potential punishment of 20 years in prison and a fine of up to $250,000, or twice the gross loss or gain caused by 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, and special agents of the IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Bryant Jackson, with the investigation leading to the indictment.

The government is represented by Assistant U.S. Attorney Dara Aquila Govan of the U.S. Attorney’s Office Cybercrimes Unit in Newark.

NEWARK, N.J. – A Somerset, New Jersey, man was sentenced today to 20 months in prison for defrauding the Veterans Affairs program by billing for services he never performed, U.S. Attorney Craig Carpenito announced.

Apostolos Voudouris, 44, previously pleaded guilty before U.S. District Judge William H. Walls in Newark federal court to an information charging him with health care fraud. Voudouris also entered into a civil settlement agreement with the government, under which he will pay $476,460 to resolve the government’s claims under the False Claims Act.

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

Voudouris is a physician specializing in cardiology and electrophysiology. Beginning in 2006, Voudouris provided services to eligible veterans at the Veterans Affairs Medical Center in East Orange, New Jersey, pursuant to his contract with the Department of Veterans Affairs (VA). Voudouris admitted that on more than 350 occasions between 2011 and 2015, he submitted documentation to the VA claiming to have performed procedures he never performed. As a result, Voudouris fraudulently received $238,230 from the VA.

In addition to the prison term, Judge Walls sentenced Voudouris to two years of supervised release and fined him $7,500. As part of his plea agreement, Voudouris must pay restitution of $238,230 to the VA in addition to the $476,460 civil settlement, for a total of $714,690.

U.S. Attorney Carpenito credited special agents of the U.S. Department of Veterans Affairs, Office of Inspector General, Criminal Investigation Division, Northeast Field Office, under the direction of Special Agent in Charge Sean Smith; the U.S. Department of Health and Human Services – Office of the Inspector General, under the direction of Special Agent in Charge Scott J. Lampert, and the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, with the investigation.

The government is represented by Assistant U.S. Attorney Jacob T. Elberg of the U.S. Attorney’s Office Criminal Division in Newark.

Defense counsel: Kristen Santillo Esq., Newark

CAMDEN, N.J. – A Camden man was sentenced today to 80 months in prison for possessing a firearm as a previously convicted felon, U.S. Attorney Craig Carpenito announced.

Anthony Thomas, 27, previously pleaded guilty before U.S. District Judge Renée Marie Bumb to an indictment charging him with one count of possession of a firearm as a convicted felon. Judge Bumb imposed the sentence today in Camden federal court.

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

Thomas, a previously convicted felon, was arrested Aug. 13, 2017, by the Camden County Police Department after officers observed him displaying a handgun to a second man. Shortly before, Thomas had retrieved the handgun from underneath the front passenger seat of a vehicle that two young children had been entering and exiting as they played nearby. After displaying the handgun to the second man, Thomas, the second man and both children entered the vehicle. Police approached and directed Thomas and others to exit the vehicle. Thomas fled on foot and was apprehended a short time later. A search of the vehicle revealed a loaded, Glock Model 17, 9mm handgun beneath the seat where Thomas had been sitting.

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

U.S. Attorney Carpenito credited special agents of the ATF Camden Field Office, under the direction of Special Agent in Charge John Devito, and the Camden County Police Department, under the direction of Chief J. Scott Thomson, with the investigation leading to today’s sentencing.

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

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

NEWARK, N.J. – A man from the Dominican Republic who was previously convicted of federal and state drug crimes made his initial court appearance today on charges he unlawfully returned to the United States, U.S. Attorney Craig Carpenito announced.

Francisco Nicholas Brito, a/k/a “Nicholas Brito,” a/k/a “Jose,” 51, is charged by complaint with one count of aggravated illegal re-entry into the United States. He made his initial appearance before U.S. Magistrate Court Judge James B. Clark III and was detained.

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

Brito illegally re-entered the United States after being deported to the Dominican Republic following a 46-month prison sentence in the Eastern District of Pennsylvania and a five-year prison sentence in New Jersey for committing drug crimes. After his deportations, Brito illegally re-entered the country and was found in New Jersey, where he was located and arrested in June 2018.

The count of illegal re-entry carries a maximum potential penalty of 20 years in prison and a $250,000 fine.

U.S. Attorney Carpenito credited deportation officers of U.S. Immigration and Customs Enforcement’s (ICE) Enforcement and Removal Operations (ERO), under Newark Field Office Director John Tsoukaris, with the investigation.

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

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

Defense counsel: Lisa Mack Esq., Assistant Federal Public Defender, Newark

NEWARK, N.J. – A Yonkers, New York, man was convicted by a federal jury of possessing a firearm as a previously convicted felon, U.S. Attorney Craig Carpenito announced today.

Francisco Vallejo, 28, was convicted of possessing a firearm despite his three prior felony convictions in Passaic County Superior Court. Vallejo was convicted on July 26, 2018 following a four-day trial before U.S. District Judge Susan D. Wigenton in Newark federal court.

According to documents filed in this case and the evidence at trial, on June 7, 2015, Vallejo was arrested in Passaic, New Jersey, after reports of a disturbance and gunshots were made to the Passaic Police Department. Responding officers detained Vallejo on the street, and thereafter located a loaded .25 caliber firearm in a nearby garbage can. A nearby security camera captured Vallejo stashing the firearm in the garbage can, and he was later found to have gunpowder residue on his hands.

Vallejo faces a maximum potential penalty of 10 years in prison and a $250,000 fine. Sentencing is scheduled for Nov. 5, 2018.

U.S. Attorney Carpenito credited special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Newark Field Division, under the direction of Special Agent in Charge John B. Devito, officers of the Passaic Police Department, under the direction of Chief of Police Luis A. Guzman, and officers of the Passaic County Sheriff’s Office, under the direction of Sheriff Richard H. Berdnik, with the investigation leading to the guilty verdict.

The government is represented by Assistant U.S. Attorney J. Brendan Day and Senior Litigation Counsel R. Joseph Gribko of the U.S. Attorney’s Office Criminal Division in Trenton.

Defense counsel: Pasquale Giannetta Esq., Newark

NEWARK, N.J. – A former officer with the N.J. Department of Corrections today admitted receiving images of child sexual abuse, U.S. Attorney Craig Carpenito announced.

Stephen Salamak, 38, of Lodi, New Jersey, pleaded guilty before U.S. District Judge Kevin McNulty in Newark federal court to an indictment charging him with receipt of child pornography.

According to documents filed in the case and statements made in court, Salamak used email to seek and obtain images of child pornography, including images of prepubescent children.

The receipt of child pornography charge carries a maximum potential penalty of 20 years in prison and a $250,000 fine. Salamak will be required to register as a sex offender. Sentencing is currently scheduled for Nov. 15, 2018.

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

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

Defense counsel: Brian Neary Esq., Hackensack, New Jersey

CAMDEN, N.J. – A Newark man was sentenced today to 144 months in prison for possessing a firearm as a previously convicted felon for a second time and violating his supervised release, U.S. Attorney Craig Carpenito announced.

John Cottle, 47, previously pleaded guilty to an information charging him with one count of being a felon in possession of a firearm and one count of violation of supervised release from his first felon in possession of a firearm conviction from 2010. U.S. District Judge Noel L. Hillman imposed the sentence today in Camden federal court.

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

In December 2016, investigators from the Newark and Hillside police departments responded to reports of a robbery in the area of South 13th Street, near Avon Avenue, in Newark. Officers encountered Cottle in the area and upon investigation found him to be in possession of a loaded .40 caliber Glock semi-automatic handgun.

Cottle has numerous prior felony convictions, including a 2010 felon in possession of a firearm conviction in the District of New Jersey – from which he was still on supervised release at the time of the 2016 arrest – and is prohibited from possessing a firearm under federal law.

Judge Hillman also sentenced Cottle to three years of supervised release.

U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, with the investigation. He also thanked the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Robert D. Laurino; the Newark Police Division, under the direction of Public Safety Director Anthony F. Ambrose; the Union County Prosecutor’s Office, under the direction of Acting Prosecutor Michael A. Monahan; and the Hillside Police Department, under the direction of Chief of Police Vincent Ricciardi, for their assistance.

The government is represented by Executive Assistant U.S. Attorney Zach Intrater.

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

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

George Karkantzelis, 27, was arrested at his home by agents of the Department of Homeland Security, Homeland Security Investigations (HSI). He is charged by complaint with one count of distributing child pornography.

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

Karkantzelis used peer-to-peer file sharing on his computer to distribute files containing images and videos of child sexual abuse, including images of prepubescent children. He made his initial appearance today before U.S. Magistrate Court Judge Steven C. Mannion and was released into third-party custody.    

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

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

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

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

CAMDEN, N.J. – A South Carolina man today admitted his role in distributing images of child sexual abuse, U.S. Attorney Craig Carpenito announced.

Rashad Russell, 28, of Bennettsville, South Carolina, pleaded guilty before U.S. District Judge Renée Marie Bumb in Camden federal court to an indictment charging him with one count of distribution of child pornography. Russell was previously arrested and charged by complaint on March 13, 2018, and was indicted on April 6, 2018.

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

Between December 2017 and March 2018, Russell contacted a law enforcement officer working in an undercover capacity through Facebook messenger. The undercover officer’s Facebook profile purported to be a young mother living in New Jersey with an 8-year-old child. On Jan. 8, 2018, Russell sent two images and one video of child pornography to the undercover officer, including images of prepubescent children being sexually abused.

The charge of distribution of child pornography carries a mandatory minimum penalty of five years in prison, a maximum potential penalty of 20 years in prison, and a $250,000 fine. Sentencing is scheduled for Oct. 29, 2018.

U.S. Attorney Carpenito credited special agents with 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 Special Assistant U.S. Attorney Leah Gould of the U.S. Attorney’s Office Public Protection Unit in Newark.

Defense counsel: Maggie Moy Esq., Assistant Federal Public Defender (Camden)

CAMDEN, N.J. – A Philadelphia, Pennsylvania, man was sentenced today to 12 months and one day in prison for his role in fraudulently cashing stolen U.S. Postal Service money orders, resulting in more than $22,000 in losses, U.S. Attorney Craig Carpenito announced.

Anthony J. Bell, 39, previously pleaded guilty before U.S. District Judge Joseph H. Rodriguez to an information charging him with one count of transmitting and presenting unlawfully issued U.S. Postal Service money orders with intent to defraud the United States. Judge Rodriguez imposed the sentence today in Camden federal court.9

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

Bell admitted that a former U.S. Postal Service employee, Marc. E Saunders, 39, of Sicklerville, New Jersey, provided Bell with stolen money orders and told him to recruit others to cash them. Bell admitted that he recruited individuals to cash the money orders and paid them a small fee, while keeping the rest of the money from the fraudulently cashed money orders for Saunders and himself. Bell also admitted he recruited an individual in York, Pennsylvania, to cash the money orders and paid the individual a small fee, keeping the rest of the money from the fraudulently cashed money orders for himself.

In addition to the prison term, Judge Rodriguez sentenced Bell to three years of supervised release.

U.S. Attorney Carpenito credited special agents of the USPS, Office of the Inspector General, under the direction of Special Agent in Charge Matthew Modafferi, Northeast Area Field Office, with the investigation leading to today’s sentencing.

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

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

NEWARK, N.J. – A resident and citizen of Russia was indicted by a federal grand jury today for his alleged role in an international procurement network that smuggled over $65 million worth of electronics from the United States to Russia in violation of export control laws, U.S. Attorney Craig Carpenito announced.

Alexander Brazhnikov Sr., 72, of Moscow, is charged by indictment with one count each of conspiracy to commit money laundering, conspiracy to smuggle goods from the United States, and conspiracy to violate the International Emergency Economic Powers Act (IEEPA). Brazhnikov Sr. is currently at large.

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

Brazhnikov Sr. was the owner, chief executive officer, and principal operator of ABN Universal, a privately held Russian microelectronics import/export company in Moscow. His son, Alexander Brazhnikov Jr., 39, of Mountainside, owned and operated four New Jersey-based microelectronics export companies in Carteret, Mountainside, Union, and Manalapan.

Brazhnikov Sr. and Brazhnikov Jr. participated in a sophisticated procurement network that secretly acquired large quantities of electronic components from U.S. manufacturers and vendors and exported those parts to Russia on behalf of Russian business entities authorized to supply those parts to the Ministry of Defense of the Russian Federation, the Federal Security Service of the Russian Federation (FSB) and Russian entities involved in the design of nuclear warheads and other weapons.

As part of the scheme, Brazhnikov Sr., through his Moscow business, obtained initial requests for quotes for the U.S.-based electronics components from various Russian entities and sent these requests directly to U.S.-based vendors electronically or to his son for implementation. Brazhnikov Sr., Brazhnikov Jr., and others then used Brazhnikov Jr.’s New Jersey export companies to purchase the electronic components from the U.S.-based distributors and re-package them for shipment to Moscow.

In order to obscure the extent of the network’s procurement activities and avoid filing the necessary export control forms, Brazhnikov Sr., Brazhnikov Jr., and others routinely falsified the true end-users and value of the components they exported. Each shipment from the United States was sent to one of 12 false addresses or shell locations in Moscow established at Brazhnikov Sr.’s direction, re-directed to a central warehouse he and others controlled, and ultimately shipped to the end-users in Russia, including the Russian defense contracting firms.

The funds for these illicit transactions were obtained from various Russian purchasers and initially deposited into one of Brazhnikov Sr.’s primary accounts in Russia. In order to further conceal the actual customers and the source of the funds, disbursements for purchases were then made through one or more foreign accounts held by shell corporations in the British Virgin Islands, Latvia, Marshall Islands, Panama, Ireland, England, United Arab Emirates, and Belize, and ultimately into one of Brazhnikov Jr.’s U.S.-based accounts.

The money laundering conspiracy charge carries a maximum potential penalty of 20 years in prison and a $500,000 fine. The conspiracy to violate the IEEPA carries a maximum potential penalty of 20 years in prison. The charge of conspiracy to smuggle goods carries a potential penalty of five years in prison and a $250,000 fine.

Brazhnikov Jr. previously pleaded guilty to his role in the scheme and was sentenced June 30, 2016, to 70 months 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 Commerce, Bureau of Industry and Security, Office of Export Enforcement, under the direction of Special Agent in Charge Jonathan Carson in New York; and the Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Brian Michael in Newark, with the investigation leading to today’s charges.

The government is represented by Assistant U.S. Attorney Dean C. Sovolos of the U.S. Attorney’s Office National Security Unit in Newark, with assistance from Trial Attorney David Recker of the Department of Justice National Security Division’s Counterintelligence and Export Control Section.

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

NEWARK, N.J. – An Oradell, New Jersey, man today admitted robbing four banks, a liquor store, and a gas station between June 2017 and December 2017, U.S. Attorney Craig Carpenito announced.

Joel Robbins, 47, pleaded guilty before U.S. District Judge Katharine S. Hayden in Newark federal court to an information charging him with four counts of bank robbery and two counts of Hobbs Act robbery.

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

Robbins robbed the following locations on the dates set forth below:

Bank

Location

Date

Chase Bank

Whippany

June 6, 2017

Santander Bank

Parsippany

July 20, 2017

The Liquor Factory

Hopatcong

October 15, 2017

Chase Bank

Edgewater

October 25, 2017

Raceway Gas Station

Pinebrook

November 26, 2017

TD Bank

Mahwah

December 3, 2017

In the TD Bank robbery, Robbins walked into the bank wearing gray pants, a black jacket, sunglasses, a dark skull cap, and light-colored latex gloves. As he entered the bank, Robbins pulled a bandana over his face. Robbins’s accomplice, Wanda Soel, 52, of Hasbrouck Heights, New Jersey, allegedly waited for Robbins in a Toyota Corolla parked outside the bank.

Robbins pulled a black handgun (later determined to be fake) from his waistband and pointed it at two bank tellers, demanded money from them and warned them not to “make me have to kill you.” The tellers complied and handed Robbins money. Robbins took the money and walked out of the bank, dropping several bills as he departed.

Robbins got into the passenger seat of the Corolla and Soel allegedly drove them away. Nearby law enforcement officers, who had received a report of the bank robbery while it was in progress, pursued the Corolla. Soel allegedly drove into the parking lot of a nearby hotel, where she and Robbins tried to switch places so Robbins could drive. When Soel got out of the Corolla, she tripped and fell, and Robbins drove away without her. Law enforcement officers arrested Soel in the hotel parking lot. Her bank robbery charges are pending.

Robbins drove out of the hotel parking lot but eventually hit a curb, blew a tire, and crashed. Law enforcement officers caught up to the Corolla and arrested Robbins. They recovered U.S. currency sticking out of Robbins’s pants and other cash bills strewn inside the Corolla, along with a fake black handgun. Officers also recovered sunglasses, a bandana, a dark knit cap, and latex gloves from the Corolla, resembling the items Robbins was seen wearing when he robbed the bank. Robbins was wearing a black jacket when he was arrested.

The counts of bank robbery and Hobbs Act robbery with which Robbins is charged each carry a maximum punishment of 20 years in prison and a $250,000 fine.

U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie, with the investigation leading to the charge. He also thanked the Mahwah Township Police Department for its contribution to the case, as well as the police departments of Hanover Township, Parsippany, Hopatcong, Edgewater and Montville.

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

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

Defense counsel: Perry Primavera Esq., Hackensack, New Jersey

NEWARK, N.J. – Two Essex County men were charged today for their alleged roles in a conspiracy that used stolen personal identifying information to open credit cards and defraud a victim bank out of approximately $600,000, U.S. Attorney Craig Carpenito announced.

Akintunde Adeyemi, a/k/a “AK,” 33, of East Orange, New Jersey, and Duluth, Georgia, and Oluwaseun Jato, 29, of Newark, are charged by complaint with one count each of bank fraud conspiracy and aggravated identity theft. Jato was arrested this morning in Atlanta and will appear today before U.S. Magistrate Judge Justin S. Anand in Atlanta federal court. Adeyemi is still at large.

According to the complaint:

Between July 2016 and May 2017, Adeyemi, Jato and others conspired to use stolen personal identifying information to fraudulently apply for credit card accounts with an entity referred to in the complaint as “Victim Bank 1.” As part of the conspiracy, Adeyemi obtained the stolen personal information from other conspirators and used it to create the fraudulent credit card accounts.

After establishing the accounts, the conspirators contacted Victim Bank 1 to change the addresses associated with the accounts so that Victim Bank 1 would send the credit cards to addresses controlled by members of the conspiracy, including locations near Adeyemi and Jato’s residences in New Jersey and Georgia. Jato and other conspirators then used the cards at retail stores in New Jersey and Georgia, among other places, to purchase smartphones, tablets, and other high-value items, which were later sold for profit. Overall, the conspirators defrauded Victim Bank 1 of approximately $600,000.

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 imposed.

U.S. Attorney Carpenito credited inspectors of the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge Judy Ramos, and special agents of the Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Brian Michael in Newark, with the investigation leading to today’s charges

The government is represented by Assistant U.S. Attorneys Nicholas P. Grippo of the U.S. Attorney’s Office Economic Crimes Unit and David M. Eskew, Chief of the U.S. Attorney’s Office Health Care and Government Fraud Unit in Newark.

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

NEWARK, N.J. – A Verona man today admitted possessing three guns as a previously convicted felon, including a replica Thompson submachine gun that he modified into a working automatic firearm, U.S. Attorney Craig Carpenito announced.

David Lutter, 69, pleaded guilty before U.S. District Judge Esther Salas in Newark federal court to an indictment charging him with one count of possessing three firearms as a previously convicted felon.

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

In January 2017, Lutter met with an undercover agent from the Bureau of Alcohol, Tobacco, and Firearms (ATF) and negotiated the sale of a functioning Thompson submachine gun. The gun had originally been a replica, but Lutter had modified it with real gun parts to convert it into a functioning automatic firearm, which, according to Lutter, could fire 20 to 25 bullets per second. Lutter had also equipped it with what he called a “rock-and-roll switch,” which could toggle between semi-automatic and automatic mode.

Lutter sold the undercover agent the submachine gun, a .32-caliber revolver, and 100 rounds of ammunition for $525. A few months later, in May 2017, Lutter sold the undercover agent a .45-caliber semi-automatic pistol, bullets, and gun parts for $500. When Lutter was arrested in June 2017, law enforcement searched a storage facility he rented and recovered several hundred additional bullets and firearm parts. All three firearms and the recovered ammunition are in the possession of law enforcement.

At no time was Lutter licensed to sell firearms and was prohibited from possessing them due to his 1993 felony conviction for sexual assault of a minor.

The illegal firearms possession count carries a maximum potential penalty of 10 years in prison and a $250,000 fine. Sentencing is scheduled for Oct. 30, 2018.

U.S. Attorney Carpenito credited special agents of the ATF Newark Field Division, under the direction of Special Agent in Charge John B. Devito, with the investigation leading to today’s guilty plea.

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

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

NEWARK, N.J. – A Bloomfield, New Jersey, man was sentenced today to 35 months in prison for failing to deliver goods his business sold to customers, stealing his customers’ credit card information and falsely claiming that purchases on his own account were fraudulent, U.S. Attorney Craig Carpenito announced.

Scott Spina Jr., 21, previously pleaded guilty before U.S. District Judge Esther Salas to an information charging him with one count of wire fraud. Judge Salas imposed the sentence today in Newark federal court.

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

Spina was in the business of selling sneakers and other high-end items to customers that included professional athletes. However, after he contracted with these customers and collected payment, he failed to deliver the goods as promised.

Spina also made personal purchases using credit card information provided by his customers and others without their authorization. In addition, he contacted his credit card company and falsely claimed that numerous purchases on his account were fraudulent. Altogether, Spina admitted he obtained or sought to obtain more than $550,000 in money or goods.

In addition to the prison term, Judge Salas sentenced Spina to three years of supervised release and ordered him to pay restitution of $516,396.33.

U.S. Attorney Carpenito credited inspectors of the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge Judy Ramos, with the investigation leading to today’s sentence. He also thanked the Salem County Prosecutor’s Office, under the direction of Prosecutor John T. Lenahan; the N.J. State Police, under the direction of Col. Patrick J. Callahan; the East Hanover Police Department, under the direction of Chief Christopher F. Cannizzo; and the West Orange Police Department, under the direction of Chief James P. Abbott, for their assistance with the case.

The government is represented by Senior Litigation Counsel Andrew Kogan of the U.S. Attorney’s Office Cybercrime Prevention and Enforcement Unit in Newark.

Defense counsel: Vincent Scoca Esq., Bloomfield

TRENTON, N.J. – A Fort Lee, New Jersey, man today admitted generating phony tax refunds using personal identifying information stolen from current and former members of the U.S. army, U.S. Attorney Craig Carpenito announced.

Shope Oluwo, 33, pleaded guilty before U.S. District Judge Freda L. Wolfson in Trenton federal court to an indictment charging him with one count each of conspiracy to commit wire fraud, access device fraud, and aggravated identity theft.

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

From January through February 2016, Oluwo conspired with others, including Dermot Sutherland, 29, of Philadelphia, to obtain personal identifying information that was stolen from current or former members of the U.S. Army. Oluwo used that stolen information to create fake military identification cards and fraudulent W-2 forms bearing the victims’ names.

Oluwo provided the phony cards and W-2 forms to Sutherland, who posed as the victims and filed phony returns with a tax preparation company. Afterwards, Sutherland received debit cards from the tax preparation company that contained the ill-gotten refunds.

The conspiracy to commit wire fraud charge carries a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. The access device fraud charge carries a maximum potential penalty of 10 years in prison and $250,000 fine, or twice the gross gain or loss from the offense. The aggravated identity theft charge carries a term of imprisonment of two years which must run consecutively to any other prison term. Sentencing is scheduled for Oct. 26, 2018.

Sutherland previously pleaded guilty to his role in the scheme and awaits sentencing.

U.S. Attorney Carpenito credited special agents of the U.S. Department of Defense, Defense Criminal Investigative Service, under the direction of Special Agent in Charge Leigh-Alistair Barzey; postal inspectors of the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge Judy Ramos; and special agents of IRS–Criminal Investigation, under the direction of Acting Special Agent in Charge Bryant Jackson in Newark, with the investigation leading to today’s guilty plea.

The government is represented by Assistant U.S. Attorney Catherine R. Murphy of the U.S. Attorney’s Office Organized Crime and Gangs Unit.

Defense counsel: Patrick Brackley Esq., New York

NEWARK, N.J. – A Parlin, New Jersey, man was sentenced today to 120 months in prison for delivering two kilograms of heroin to another individual in Harrison, New Jersey, U.S. Attorney Craig Carpenito announced.

Pedro Rodriguez, 44, previously pleaded guilty before U.S. District Judge Claire C. Cecchi to an information charging him with conspiracy to possess with intent to distribute more than a kilogram of heroin. Judge Cecchi imposed the sentence today in Newark federal court.

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

On Oct 19, 2017, law enforcement officers observed Pedro Rodriguez outside of a restaurant in Newark, where he met with another individual and retrieved a bag that was suspected of containing narcotics. Afterwards, Pedro Rodriguez drove to Harrison, met with Rafaelito Rodriguez (no relation), 43, of East Stroudsburg, Pennsylvania, and provided him a bag containing approximately two kilograms of heroin. Rafaelito Rodriguez was arrested in Harrison shortly afterwards. Pedro Rodriguez was later arrested at his home in Parlin.

In addition to the prison term, Judge Cecchi sentenced Rodriguez to five years of supervised release.

Rafaelito Rodriguez was sentenced July 17, 2018, to 57 months in prison and three years of supervised release.

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

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

Defense counsel: Pedro Rodriguez is represented by Michael Pedicini Esq.

NEWARK, N.J. – A former U.S. Postal Service (USPS) mail handler today admitted stealing approximately 16 packages containing marijuana, U.S. Attorney Craig Carpenito announced.

Akeem Cauthen, 30, of Newark, pleaded guilty before U.S. District Judge Susan D. Wigenton in Newark federal court to an information charging him with one count of theft of mail. He was released on $40,000 unsecured bond.

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

Cauthen was a mail handler at the Northern New Jersey Metro Processing and Distribution Center in Teterboro, New Jersey. From May to November 2017, Cauthen looked for parcels from Arizona, California, or Colorado, and then smelled, opened or poked holes in the packages to search for marijuana. Upon finding marijuana, Cauthen stole the parcels by replacing the original mailing labels with labels containing addresses in Paterson where he later picked them up. Overall, Cauthen obtained approximately $32,000 worth of marijuana.

The theft of mail charge is punishable by a maximum potential penalty of five years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. Sentencing is scheduled for Oct. 24, 2018.

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

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

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

NEWARK, N.J. – An Irvington, New Jersey, man appeared in federal court today to face allegations that he robbed three North Jersey banks between January and April 2018, U.S. Attorney Craig Carpenito announced.

Mark Macon, 45, is charged by indictment with three counts of bank robbery. He appeared this afternoon before U.S. District Judge Esther Salas in Newark federal court and was detained.

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

Macon allegedly robbed a TD Bank in Union City on Jan. 13, 2018, a TD Bank in Jersey City on April 19, 2018, and a Chase Bank in Jersey City on April 23, 2018. Macon robbed each location by handing a teller a note stating the bank was being robbed and demanding cash. Macon was arrested on April 26, 2018 and has been in state custody since that time.

Each bank robbery charge carries a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense.

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 Jersey City and Union City police departments for their assistance.

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

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

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

TRENTON, N.J. – An insurance salesman who was entrusted with managing his client’s inheritance was sentenced today to 36 months in prison for fraudulently using the funds for his own benefit, U.S. Attorney Craig Carpenito announced.

Patrick McCullagh, 70, of Georgetown, Kentucky, was previously convicted of an indictment charging him with one count of wire fraud. He was convicted following an eight-day trial before U.S. District Judge Mary L. Cooper, who imposed the sentence today in Trenton federal court.

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

McCullagh was the principle of MidAtlantic Regional Services Inc., a purported insurance company located in Bordentown, New Jersey. In 2001, the victim entrusted McCullagh with money that the victim had inherited from his mother after her death. McCullagh falsely told the victim that he would use the funds to invest in a manner that would preserve the principle while paying the victim back in interest. 

Instead, McCullagh pocketed some of the funds directly and forged withdrawal requests so he could loot money from the victim’s investment accounts. In order to deceive the victim, McCullagh also had the victim’s account statements diverted from the victim’s address. 

In addition, the “interest” payments that McCullagh paid the victim on a monthly basis were actually funds McCullagh had siphoned from the investment accounts’ principle balance. McCullagh even fraudulently told the victim that some of the investments were tied-up in legal disputes surrounding a Kentucky property and that he needed money for legal fees, which the victim later provided. Altogether, McCullagh defrauded the victim out of more than $100,000.

In addition to the prison term, Judge Cooper ordered McCullagh to serve one year of supervised release and pay restitution of $98,067.82.

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. 

The government is represented by Assistant U.S. Attorney Molly Lorber and Senior Litigation Counsel Joseph Gribko of the U.S. Attorney’s Office Criminal Division in Trenton.

Defense counsel: James Patton Esq., Livingston, New Jersey