District of New Jersey

Plea Calls for 22-Year Prison Sentence

NEWARK, N.J. – A soldier of the Sex Money Murder set of the Bloods street gang today admitted his role in a racketeering conspiracy that involved attempted murder and conspiracy to distribute heroin, Acting U.S. Attorney William E. Fitzpatrick announced.

Laquan Reed, 27, a/k/a “Drama,” of Montclair, New Jersey, pleaded guilty before U.S. District Judge Susan D. Wigenton in Newark federal court to Count Two of a 14-count superseding indictment charging him with racketeering conspiracy.

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

The Bloods street gang is organized into subgroups, called “sets,” that operate in specific geographic locations. Sex Money Murder is the set that operates primarily in Essex County, New Jersey. Reed, a ranking member in Sex Money Murder, admitted that from 2007 to 2011 he committed a series of violent crimes to advance the gang’s objectives. He admitted that he conspired with set members to murder a rival gang member on Aug. 3, 2011, identified in the indictment as “Victim 6.” Reed admitted he and others engaged in a shootout in an effort to kill the rival gang member in and around Newark. Reed also admitted conspiring to distribute more than one kilogram of heroin in and around Newark.

The plea agreement requires Reed to be sentenced to 22 years in prison and five years of supervised release. Sentencing is scheduled for July 10, 2017.

Acting U.S. Attorney Fitzpatrick credited special agents of the FBI and the FBI’s Safe Streets Task Force, under the direction of Special Agent in Charge Timothy Gallagher in Newark; the Essex County Prosecutor’s Office, under the direction of Acting Essex County Prosecutor Carolyn A. Murray; the Essex County Sheriff’s Office, under the direction of Sheriff Armando V. Fontoura; and the Newark Department of Public Safety, under the direction of Anthony F. Ambrose, with the investigation leading to today’s guilty plea. He also thanked special agents of the Drug Enforcement Administration (DEA), under the direction of Special Agent in Charge Carl J. Kotowski; and special agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), under the direction of Acting Special Agent in Charge Scott C. Curley, for their roles in the investigation.

The government is represented by Assistant U.S. Attorneys Mary Toscano, Chief, Organized Crime and Gangs Unit of the U.S. Attorney’s Office’s Criminal Division, and Dara Govan of the Criminal Division in Newark.

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

A Romanian citizen pleaded guilty today to a scheme to defraud customers of Bank of America and PNC Bank through conduct known as “ATM skimming.”

Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division; Acting U.S. Attorney William E. Fitzpatrick of the District of  New Jersey; and Special Agent in Charge Terence S. Opiola of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations Newark, New Jersey, Division made the announcement.

Radu Bogdan Marin, 36, a Romanian citizen residing in Glendale, New York, pleaded guilty to one count of conspiracy to commit bank fraud before U.S. District Judge Esther Salas of the District of New Jersey. 

According to admissions in the plea agreement, Marin and his co-conspirators sought to defraud financial institutions and their customers by illegally obtaining customer account information, including account numbers and personal identification numbers.  Marin admitted that between March 2015 and July 2016, Marin and his co-conspirators used counterfeit ATM cards and stolen customer information to withdraw cash from compromised bank accounts at ATMs in New Jersey.  Marin and his co-conspirators used more than 10 ATM cards to conduct cash withdrawals in New Jersey, withdrawing tens of thousands of dollars, $39,140 of which was personally atrributable to Marin.  

The U.S. Immigration and Customs Enforcement’s Homeland Security Investigation’s Newark, New Jersey, Division; U.S. Secret Service’s Boston Field Office; Longmeadow, Massachusetts, Police Department; Cambridge, Massachusetts, Police Department; and Medford, Massachusetts, Police Department investigated the case with assistance from Bank of America Security and Fraud Section and PNC Bank Security Division.  The Middlesex County, Massachusetts, District Attorney’s Office; U.S. Attorney’s Office of the Eastern District of New York and U.S. Attorney’s Office of the District of Massachusetts Springfield Division assisted in the investigation and prosecution.  Trial Attorney Marianne Shelvey of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorney Kelly Graves of the District of New Jersey are prosecuting the case.

NEWARK, N.J. – A member of a scheme that used secret card-reading devices and pinhole cameras on PNC and Bank of America ATMs to steal at least $428,581 pleaded guilty today in Newark federal court.

Acting U.S. Attorney William E. Fitzpatrick of the District of New Jersey; Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division; and Special Agent in Charge Terence S. Opiola of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations Newark Division made the announcement.

Radu Bogdan Marin, 36, a Romanian citizen residing in Glendale, New York, pleaded guilty before U.S. District Judge Esther Salas to an information charging him with one count of conspiracy to commit bank fraud. Marin is the first of 13 defendants charged in this matter to plead guilty.

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

Marin and others sought to defraud financial institutions and their customers by illegally obtaining customer account information, including account numbers and personal identification numbers. Marin admitted that between March 2015 and July 2016, he and others used counterfeit ATM cards and stolen customer information to withdraw cash from compromised bank accounts at ATMs in New Jersey. Marin and others used more than 10 ATM cards to conduct fraudulent cash withdrawals in New Jersey, $39,140 of which was personally attributable to Marin.

The conspiracy to commit bank fraud charge carries a maximum potential penalty of 30 years in prison and a $1 million fine. Sentencing is set for July 17, 2017.

The U.S. Immigration and Customs Enforcement’s Homeland Security Investigation’s Newark, New Jersey, Division; U.S. Secret Service’s Boston Field Office; Longmeadow, Massachusetts, Police Department; Cambridge, Massachusetts, Police Department; and Medford, Massachusetts, Police Department investigated the case with assistance from Bank of America Security and Fraud Section and PNC Bank Security Division. The Middlesex County, Massachusetts, District Attorney’s Office; U.S. Attorney’s Office of the Eastern District of New York and U.S. Attorney’s Office of the District of Massachusetts Springfield Division assisted in the investigation and prosecution.

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

Defense counsel: Gary Mizzone Esq., Little Falls, New Jersey

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

NEWARK, N.J. – A former top official of the Port Authority of New York and New Jersey and a former member of Gov. Christopher J. Christie’s senior staff were sentenced today to prison terms for their roles in a scheme to punish the mayor of Fort Lee, New Jersey, by misusing Port Authority resources to cause traffic problems in the borough, Acting U.S. Attorney William E. Fitzpatrick announced.

William E. Baroni Jr., 45, former deputy executive director of the Port Authority of New York and New Jersey, was sentenced to 24 months in prison and Bridget Anne Kelly, 44, former deputy chief of staff to Gov. Christie, to 18 months. On Nov. 4, 2016, Baroni and Kelly were each convicted following a six-week trial before U.S. District Judge Susan D. Wigenton on all seven counts with which they had been charged in an indictment returned May 1, 2015, by a federal grand jury. Judge Wigenton imposed the sentences today in Newark federal court.

“We are satisfied that the sentences handed down today are a just result,” Acting U.S. Attorney Fitzpatrick said. “The defendants’ unlawful use of their government positions and government resources to settle a petty political score was a flagrant breach of their duty to the public and reflected a callous disregard for the welfare of the people of New Jersey. These sentences are fair and appropriate.”

“Today’s sentencing further reinforces the FBI’s commitment to aggressively pursue public corruption at any level, along with our federal, state, and local law enforcement partners and the U.S. Attorney’s Office,” Special Agent in Charge Timothy Gallagher of the Newark FBI Field Office said. “The citizens of the state of New Jersey expect and deserve the highest quality of government, and the FBI and our law enforcement partners remain dedicated to ensuring they receive it.”

“The investigation, prosecution, and convictions, after trial, of William Baroni and Bridget Anne Kelly established that they misused their sacred public trust to harm the very constituents they were hired to serve,” Michael Nestor, Inspector General of the Port Authority, said. “Further, Baroni and Kelly engaged in a cover-up of their scheme, and caused false information to be distributed to their fellow Port Authority employees, other government employees, and the public. The Port Authority Office of Inspector General, and its professional staff, will continue to fulfill its mission of rooting out corruption, no matter what level it may exist within the Port Authority. We commend our law enforcement partners for their cooperative effort and tireless work.”

Baroni and Kelly were each convicted of conspiring to misuse, and actually misusing, property of an organization receiving federal benefits; conspiring to commit, and actually committing, wire fraud; conspiring to injure and oppress certain individuals’ civil rights, and acting under color of law to deprive certain individuals of their civil rights. All of the charges relate to the defendants’ scheme to manufacture traffic problems in Fort Lee by, without public warning, reducing from three to one the number of local access lanes, located in Fort Lee, to the upper level of the George Washington Bridge, and the toll booths servicing those lanes. This was done to punish Mayor Mark Sokolich for not endorsing Gov. Christie’s re-election bid.

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

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

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

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

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

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

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

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

In addition to the prison terms, Judge Wigenton sentenced the each of the defendants to one year of supervised release.

Acting U.S. Attorney Fitzpatrick credited criminal investigators of the Port Authority, Office of Inspector General, under the direction of Inspector General Nestor; special agents of the FBI, under the direction of Special Agent in Charge Gallagher; and criminal investigators of the U.S. Attorney’s Office, for the investigation leading to today’s guilty verdicts.   

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

Defense counsel: William E. Baroni: Michael Baldassare Esq., Newark
Bridget Anne Kelly: Michael Critchley Sr. Esq., Roseland, New Jersey

NEWARK, N.J. – An investment manager with an office in Short Hills, New Jersey admitted today that he fraudulently induced investments, concealed investment losses, and diverted more than $675,000 in investor money for his own use, Acting U.S. Attorney William E. Fitzpatrick announced.

 

Mark Moskowitz, 48, of Short Hills, pleaded guilty before U.S. District Judge Katharine S. Hayden in Newark federal court to an information charging him with one count of wire fraud.

 

In a separate legal proceeding, the N.J. Bureau of Securities today ordered Moskowitz and his trading company, Edge Trading LLC, to pay a $1 million civil penalty for selling unregistered fraudulent securities and misusing investors’ funds for personal expenses.

 

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

 

Moskowitz controlled an investment fund under the names Edge Trading Partners L.P. and Edge Trading LLC (Edge Trading). In addition to touting his investment skill and experience, Moskowitz concealed losses from investors and falsely told them that Edge Trading was growing year after year. Based on these misrepresentations, investors continued to entrust additional funds to Moskowitz and left previous investments under his control.

 

Edge Trading was an investment fund that Moskowitz created and operated, starting in or around 2012. Moskowitz told investors that Edge Trading was invested in U.S. and foreign equities, futures contracts, and option contracts and that the fund’s investments continued to show positive returns. In reality, Moskowitz redirected investor money to his personal use, which he concealed from the investors.

 

The count of wire fraud to which Moskowitz pleaded guilty carries a maximum potential penalty of 10 years in prison and a $250,000 fine. Sentencing is scheduled for July 5, 2017.

 

Acting U.S. Attorney Fitzpatrick credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher, with the investigation leading to today’s guilty plea. He also thanked the N.J. Bureau of Securities in the State Attorney General’s Office, under the direction of Attorney General Christopher S. Porrino and Acting Bureau Chief Amy Kopleton, for its assistance in the investigation.

 

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

 

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

NEWARK, N.J. – A member of the DeCavalcante Family of La Cosa Nostra was sentenced today to 120 months in prison for using a telephone to plan the murder of an organized crime rival, Acting U.S. Attorney William E. Fitzpatrick announced.

Charles Stango, 73, of Henderson, Nevada, previously pleaded guilty before U.S. District Judge William H. Walls to an information charging him with one count of knowingly using an interstate facility – the telephone – with the intent to murder a rival. He also pleaded guilty to violating the terms of his supervised release, which he was serving following his imprisonment on racketeering charges in New York. Judge Walls imposed the sentence today in Newark federal court.

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

Stango was arrested on April 14, 2015, as part of a sweep of DeCavalcante crime family members that operated in New Jersey and elsewhere.  The DeCavalcante crime family was part of a nationwide criminal organization known variously as the “Mafia” and “La Cosa Nostra,” which operated through entities called “families.”  The DeCavalcante family engaged in numerous criminal activities, including conspiracy to commit murder, distribution of controlled substances, prostitution, extortion, and other crimes of violence. 

Stango admitted today that he used the telephone to plan the murder of a crime family rival (identified in court papers as “Victim 1”). Based on tape-recorded evidence uncovered during the investigation, Stango believed that Victim 1 had falsely held himself out to be a “made man” within the family structure.  Stango refused to recognize Victim 1’s alleged new status. Stango also believed that Victim 1 had intentionally insulted a high-ranking family member, which Stango felt deserved the ultimate punishment. He offered up to $50,000 to two assassins to carry out the order. The two assassins were, in fact, undercover FBI agents. Law enforcement officials closed down the investigation to ensure Victim 1’s safety, and he was never harmed.        

Six of Stango’s co-defendants, including his son, Anthony Stango, have pleaded guilty to various crimes – including distribution of significant amounts of cocaine and attempting to set up a prostitution business – to enrich the crew members and the crime family.

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

Acting U.S. Attorney Fitzpatrick credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark; the Waterfront Commission of New York Harbor, under the direction of Executive Director Walter Arsenault; the Bayonne Police Department, under the direction of Chief Drew Niekrasz; and the N.J. State Commission of Investigation, under the direction of Acting Director Lee C. Seglem, with the investigation leading to today’s sentencing. He also thanked the FBI’s Las Vegas office and the Union County Prosecutor’s Office for their roles in the investigation.

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

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

NEWARK, N.J. – A former salesman at Bayway Lumber, a Linden, New Jersey company that sold commercial and industrial products to numerous public and private entities, was charged today with defrauding Bayway Lumber customers and knowingly making false statements before a federal grand jury, Acting U.S. Attorney William E. Fitzpatrick announced.

Adam Martignetti, 43, of South River, New Jersey, is charged by indictment with one count of conspiracy to commit wire fraud, four counts of corruptly giving valuable items to agents of entities receiving federal funds, and one count of providing false testimony to a federal grand jury. He was arrested this morning by federal agents and is scheduled to appear this afternoon before U.S. Magistrate Judge Mark Falk in Newark federal court. 

According to the indictment:

From 2011 through 2013, Martignetti allegedly conspired with others to defraud certain customers by fraudulently billing them for free items given to the customers’ employees and by fraudulently providing lower-quality products than what was actually purchased.

Martignetti gave a variety of valuable items to employees of Amtrak, the City of Elizabeth, and the Plainfield Board of Education. These items included a laptop, several iPads, a camera and sound system, patio furniture, and other merchandise. Under the supervision of Robert Dattilo, President and partial owner of Bayway Lumber, Martignetti overbilled those customer entities to recover the gifts’ costs and generate additional revenue. Dattilo even kept a running tally of how much Martignetti and others fraudulently billed those customer entities – which many at Bayway Lumber referred to as the “Bank” – to ensure that Bayway Lumber recovered the full cost of the free items.

Martignetti also participated in a product substitution fraud in which Bayway Lumber supplied lower quality products than what was actually ordered and paid for. When Consolidated Edison Company of New York Inc. (ConEdison) ordered plywood that was graded to meet certain specifications, Martignetti, at Dattilo’s instruction, routinely sent lower grade or ungraded plywood, all while still charging ConEdison for the higher quality plywood.    

While appearing as a witness under oath before a federal grand jury in March 2013, Martignetti falsely testified that he had never given free Bayway Lumber items to City of Elizabeth employees and that Elizabeth was never charged for items that were for the employees’ personal use.   

The conspiracy to commit wire fraud count carries a maximum potential penalty of 20 years in prison. Each charge of corruptly giving valuable items to agents of federally-funded entities carries a maximum potential penalty of 10 years in prison. The knowingly making false statements before a grand jury count carries a maximum penalty of five years in prison. Each count also carries a maximum $250,000 fine, or twice the gross gain or loss from the offense.

Dattilo previously pleaded guilty to conspiracy to commit mail and wire fraud and was sentenced to 48 months in prison and ordered to pay restitution of $708,386 in July 2016.

Acting U.S. Attorney Fitzpatrick credited special agents with the Office of Inspector General, U.S. Department of Housing and Urban Development, under the direction of Special Agent in Charge Christina Scaringi; the Office of Inspector General, Amtrak, under the direction of Inspector General Thomas Howard; and the FBI, under the direction of Special Agent in Charge Timothy Gallagher, with the investigation leading to today’s arrest. He also thanked the Department of Education Office of Inspector General, under the direction of Special Agent in Charge Brian Hickey, for its assistance in the investigation. 

The government is represented by Assistant U.S. Attorney Cari Fais of the U.S. Attorney’s Office Special Prosecutions Division, and Deputy Chief Barbara R. Llanes of the U.S. Attorney’s General Crimes Unit in Newark. 

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

Defense counsel: Michael A. Armstrong Esq., Willingboro

CAMDEN, N.J. – A former Atlantic County, New Jersey, man charged in connection with a scheme to smuggle misbranded drugs into the country and dispense drugs without a valid prescription will make his initial court appearance today, Acting U.S. Attorney William E. Fitzpatrick announced.

Merwin Marc Snyder, 64, formerly of Egg Harbor Township, New Jersey, is charged by indictment with one count of conspiracy, three counts of smuggling of misbranded drugs, one count of receipt and delivery of misbranded drugs, four counts of misbranding by dispensing prescription drugs without a valid prescription, four counts of introducing misbranded drugs into interstate commerce. He is scheduled to make his initial appearance this afternoon before U.S. Magistrate Judge Joel Schneider in Camden federal court. He will then be arraigned before U.S. District Judge Noel L. Hillman.

Snyder was located in China’s Jiangsu Sheng Province earlier in the month and deported back to the United States to face the pending charges. He was indicted by a federal grand jury in Camden on Dec. 9, 2015.

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

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

Between May 7, 2010, through July 25, 2013, Snyder allegedly received by mail from India various parcels that were accompanied by incomplete or misleading U.S. Customs declarations. The parcels contained prescription drugs, including unapproved generics that contained the active ingredients in the popular brand-name drugs Viagra, Cialis, and Levitra, as well as unapproved Mifepristone and Misoprostol. Snyder then repackaged these wholesale quantities of drugs into smaller amounts and dispensed them to consumers. Snyder did not seek FDA approval to market these drugs nor was he licensed as a pharmacist in the State of New Jersey or otherwise authorized to prescribe or dispense prescription drugs. The parcels Snyder shipped through the U.S. Postal Service contained misbranded drugs that did not bear the FDA-approved labeling.

Snyder allegedly caused to be shipped 27 parcels addressed to him in Egg Harbor that contained more than 25,000 tablets of unapproved generic drugs containing Tadalifil (active ingredient in Cialis) and 28,000 tablets of Sildenafil Citrate (active ingredient in Viagra).

The conspiracy count carries a maximum potential penalty of up to five years in prison. The three counts of smuggling each carry a carry a maximum potential penalty of up to 20 years in prison; one count of receipt and delivery of misbranded drugs, four counts of misbranding by dispensing prescription drugs without a valid prescription, four counts of introducing misbranded drugs into interstate commerce each carry a maximum potential penalty of up to three years in prison. All counts carry a fine of up to $250,000 or twice the gross pecuniary gain or loss.

Acting U.S. Attorney Fitzpatrick credited special agents with Homeland Security Investigations, under the direction of Special Agent in Charge Terence S. Opiola in Newark, New Jersey; special agents of the Food and Drug Administration, under the direction of Special Agent in Charge Mark S. McCormack, FDA Office of Criminal Investigations’ Metro Washington Field Office; and postal inspectors with the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge John Walker, Philadelphia Division, with the investigation leading to the indictment.

The government is represented by Special Litigation Counsel Jason M. Richardson of the U.S. Attorney’s Office in Camden.

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

Defense counsel: Lisa Lewis Esq., Camden

NEWARK, N.J. – A North Caldwell, New Jersey, man today admitted fraudulently using over $550,000 in investment funds that he solicited to purchase and sell consumer products in bulk, Acting U.S. Attorney William E. Fitzpatrick announced.

Michael Esposito, 45, pleaded guilty before U.S. District Judge William J. Martini in Newark federal court to an information charging him with one count of wire fraud.

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

From August 2013 through February 2017, Esposito was the president of numerous entities that purported to purchase consumer products in bulk from manufacturers for resale to wholesalers and retailers. Esposito admitted that he told potential investors that he could purchase consumer goods – such as soda and bottled water – at substantial discounts, and that he had buyers ready to purchase the products at a significant profit.

In return for providing the funds necessary to purchase the products, Esposito promised the victim investors a large percentage of the profits. However, Esposito admitted that he used the funds for his personal expenses and to pay other investors in order to make it appear the money was properly used. Esposito admitted that his actions resulted in losses of more than $550,000.

The charge of wire fraud is punishable by a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. Sentencing is set for July 20, 2017.

Acting U.S. Attorney Fitzpatrick credited special agents with the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, with the investigation. He also thanked investigators with the Florida Office of Financial Regulation for their assistance.

The government is represented by Assistant U.S. Attorneys Andrew Kogan of the U.S. Attorney’s Office Economic Crimes Unit and Sarah Devlin of the Asset Forfeiture Unit in Newark.

Defense counsel: Brooke M. Barnett Esq., Newark

NEWARK, N.J. – A Rockland County, New York, man today admitted participating in a December 2015 robbery of a North Jersey bar and the violent carjacking and kidnapping that took place shortly afterwards, Acting U.S. Attorney William E. Fitzpatrick announced.

Guillermo Carrillo-Iraheta, 19, of Suffern, New York, pleaded guilty before U.S. District Judge Jose L. Linares in Newark federal court to an information charging him with one count each of conspiracy to commit Hobbs Act Robbery, carjacking, and kidnapping.

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

Guillermo Carrillo-Iraheta admitted that on Dec. 25, 2015, he and others robbed a bar in Hawthorne, New Jersey, and subsequently fled with approximately $200 in cash.

Afterwards, in the early morning hours of Dec. 26, 2015, Guillermo Carrillo-Iraheta and others hailed a taxi in Paterson, New Jersey, and forcibly took the taxi from the driver. Guillermo Carrillo-Iraheta admitted that he and others forced the driver into the back of the vehicle and took over driving. Guillermo Carrillo-Iraheta also admitted that he and others caused seriously bodily injury to the driver by hitting him in the head with a beer bottle and slicing his throat with a knife before eventually leaving him on the side of the road in New York. The taxicab driver survived.

The kidnapping charge carries a maximum potential penalty of life imprisonment. The carjacking charge carries a maximum potential penalty of 25 years in prison. The conspiracy charge carries a maximum potential penalty of up to 20 years in prison. Sentencing is scheduled for June 27, 2017.

Guillermo Carrillo-Iraheta was originally charged with Wilbur Jonathan Barahona, 21, of Ridgewood, New Jersey, Balmore Carrillo-Iraheta, 19, of Suffern, Juan Chiliseo-Vega, 20, of Suffern, Oscar Avalos-Cortez, 23, of New City, New York, and Jostin Reyes, 21, of Waldwick, New Jersey, in November 2016. Chiliseo-Vega pleaded guilty before U.S. Magistrate Judge Joseph A. Dickson in Newark federal court on March 21, 2017 to a three-count information charging him with conspiracy to commit Hobbs Act Robbery, carjacking, and kidnapping. He awaits sentencing.

The charges against Barahona, Reyes, Balmore Carrillo-Iraheta, and Avalos-Cortez are still pending, and they are presumed innocent unless and until proven guilty.

Acting U.S. Attorney Fitzpatrick credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, as well as the Ridgewood and Hawthorne Police Departments, with the investigation leading to today’s guilty plea.

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

Defense counsel: Michele Ann Adubato Esq., Bayonne, New Jersey.

TRENTON, N.J. – The owner of former payroll company, Innovative Payroll Services LLC (IPS) admitted today he operated a multimillion-dollar fraud scheme through his company, Acting U.S. Attorney William E. Fitzpatrick announced.

John Scholtz, 68, of Sea Isle City, New Jersey, pleaded guilty before U.S. District Judge Freda L. Wolfson in Trenton federal court to an information charging him with one count of wire fraud and one count of transacting in criminal proceeds.

 

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

Scholtz owned and operated IPS, a company that provided payroll services to clients – including municipalities, educational institutions, and various small to medium-sized privately held companies – in New Jersey and elsewhere. Each payroll period, IPS provided its clients with a summary setting forth the payroll taxes owed for that period. IPS clients then deposited the specified payroll taxes into an IPS bank account, where IPS held the funds until they were remitted to the taxing authorities.

Scholtz admitted that from February 2012 to January 2016, he withdrew or directed others at IPS to withdraw client tax funds from IPS’ Tax Impound Accounts, knowing that these funds constituted client tax funds, and used these funds instead for IPS operating expenses and his own personal expenses, including payments for homes, cars, boats, airplanes and credit cards.

This ongoing misappropriation of funds caused many IPS clients to be in delinquent status with the IRS and state and local taxing authorities. As clients’ tax deposit funds came in, IPS used such funds to pay other clients’ taxes owed for prior pay periods, as well as penalties and interest. As a result, at least 103 IPS clients lost more than $8.4 million worth of federal, state and local tax deposits that IPS failed to make, as well as more than $578,000 in associated penalties and interest. The City of Trenton was an IPS client from July 2009 to January 2016, and is one of is the IPS clients whose tax deposit funds were misappropriated by Scholtz.

The wire fraud count to which Scholtz pleaded guilty carries a maximum potential penalty of 20 years in prison; the transacting in criminal proceeds count carries a maximum penalty of 10 years in prison. Both charges also carry a fine of $250,000 or twice the gross gain or loss from the offense. Scholtz will also be ordered to pay restitution and forfeit certain property at sentencing, currently scheduled for July 6, 2017.

Acting U.S. Attorney Fitzpatrick credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher, Newark Division; special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen, Newark Division; and the Mercer County Prosecutor's Office, under the direction of Prosecutor Angelo J. Onofri, with the investigation leading to today’s guilty plea.

 

The government is represented by Assistant U.S. Attorney Sarah M. Wolfe of the U.S. Attorney’s Office Criminal Division in Trenton.

 

Defense counsel: Brian Reilly Esq., Assistant Federal Public Defender, Trenton

TRENTON, N.J. – The two owners of a New Jersey jewelry store who used the business to further one of the largest credit card fraud schemes ever charged by the Justice Department were both sentenced today for their respective roles in the scheme, Acting U.S. Attorney William E. Fitzpatrick announced.

 

Vijay Verma, 49, and Tarsem Lal, 78, both of Iselin, New Jersey, were sentenced to 14 months in prison and 12 months of home confinement, respectively. Both previously pleaded guilty before U.S. District Judge Anne E. Thompson in Trenton federal court to informations charging them with one count of access device fraud. Judge Thompson imposed the sentence today in Trenton federal court.

 

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

 

Verma and Lal were indicted in October 2013 as part of a scheme to fabricate more than 7,000 false identities to obtain tens of thousands of credit cards. Participants in the scheme doctored credit reports to pump up the spending and borrowing power associated with the cards. They then borrowed or spent as much as they could, based on the phony credit history, but did not repay the debts – causing more than $200 million in confirmed losses to businesses and financial institutions. These debts were incurred at Verma’s jewelry store, among many other locations, where Verma would allow fraudulently obtained credit cards to be swiped in phony transactions.

 

The scheme involved a three-step process in which the defendants would make up a false identity by creating fraudulent identification documents and a fraudulent credit profile with the major credit bureaus; pump up the credit of the false identity by providing false information about that identity’s creditworthiness to those credit bureaus; then run up large charges.

 

The scope of the criminal fraud enterprise required other scheme participants to construct an elaborate network of false identities. Across the country, they maintained more than 1,800 “drop addresses,” including houses, apartments and post office boxes, which they used as the mailing addresses for the false identities.

 

Verma and Lal each admitted allowing others who came to their Jersey City, New Jersey, store, store to swipe cards they knew did not legitimately belong to them. Verma and Lal would then split the proceeds of the phony transactions with these other conspirators.

 

In addition to the prison terms, Judge Thompson sentenced Verma to three years of supervised release and Lal to three years of probation. Each defendant was fined $5,000 and ordered to pay forfeiture of $451,259.

 

Acting U.S. Attorney Fitzpatrick credited special agents of the FBI’s Cyber Division, under the direction of Special Agent in Charge Timothy Gallagher; postal inspectors from the U.S. Postal Inspection Service, under the direction of Postal Inspector in Charge James V. Buthorn; and special agents of the U.S. Secret Service, under the direction of Special Agent in Charge Mark McKevitt, with the investigation leading to today’s sentencings. He also thanked the U.S. Social Security Administration Office of Inspector General, Office of Investigations in New Jersey for assisting in the investigation.

 

The government is represented by Assistant U.S. Attorneys Zach Intrater and Daniel V. Shapiro of the U.S. Attorney’s Office Economic Crimes Unit and Barbara Ward of the office’s Asset Forfeiture Unit in Newark.

 

This case is part of efforts underway by the Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorney’s offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.  

 

Defense counsel:

Verma: Gerald Krovatin Esq., Newark

Lal: Paul Condon Esq., Jersey City, New Jersey

NEWARK, N.J. – Two Essex County, New Jersey, men were indicted by a federal grand jury today for their alleged roles in a September 2015 armed robbery of a club in Passaic, New Jersey, Acting U.S. Attorney William E. Fitzpatrick announced.

Jimmy Cooper, a/k/a “Flip,” 32, of Irvington, New Jersey, and Keontrae Lawrence, a/k/a “Taz,” 28, of South Orange, New Jersey, were both charged by indictment with one count of conspiracy to commit Hobbs Act robbery and one count of brandishing a firearm during a crime of violence. They will be arraigned at a date to be determined.

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

In the early morning hours of Sept. 6, 2015, Cooper, Lawrence, and others allegedly agreed to rob a club in Passaic at gunpoint. Cooper sent text messages to a conspirator’s phone coordinating the timing of the robbery and discussing how to smuggle the gun into the club. Minutes later, Lawrence and a conspirator entered the office of the club where an employee was alone. They brandished a firearm, threatened to kill the employee, and emptied the contents of an open safe into two purses. Lawrence and the other robber ordered the employee to the ground and told him to count to 100 as they lowered the lights and fled the club in a getaway car.

Following the robbery, the robbers led the police on a high-speed car chase through Passaic, Newark, and East Orange, New Jersey, abandoning the car in East Orange and fleeing on foot. Lawrence was arrested a short while later and charged by the Passaic County Prosecutor’s Office with robbery and firearms offenses. Cooper was arrested on Nov. 3, 2016, after both men were charged by complaint in Newark federal court on Nov. 2, 2016.

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

Acting U.S. Attorney Fitzpatrick credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, and members of the Passaic County Prosecutor’s Office, under the direction of Prosecutor Camelia M. Valdes, with the investigation leading to today’s charges. He also thanked the Passaic County Sheriff’s Office, the Passaic Police Department, and the Newark Police Department for their assistance.

The government is represented by Assistant U.S. Attorney Elaine K. Lou of the U.S. Attorney’s General Crimes Unit in Newark.

Defense counsel:

Cooper: Kevin Carlucci Esq, Newark

Lawrence: Paulette Pitt Esq., Woodbridge

TRENTON, N.J. – A Monmouth County, New Jersey, man today admitted using his e-mail and instant messaging accounts to receive images of child sexual abuse, Acting U.S. Attorney William E. Fitzpatrick announced.

Matthew Kaminsky, 50, of Matawan, New Jersey, pleaded guilty before U.S. District Judge Mary L. Cooper in Trenton federal court to an information charging him with one count of receiving child pornography.

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

Kaminsky allegedly met various underage girls through online chat applications and sent them naked pictures of himself. In late January of 2015, over the course of several days, he began corresponding with a 13-year-old girl over an online chat application and induced her to take nude pictures of herself and to send them to him. In March 2015 law enforcement officers recovered computer equipment belonging to Kaminsky containing images and videos appearing to be of child sexual abuse. Law enforcement officers located and interviewed the 13-year-old girl Kaminsky had chatted with online in January of 2015, and she confirmed that she had chatted online with Kaminsky and had sent him nude pictures of herself at his request.

The count of receiving child pornography carries a maximum potential penalty of 20 years in prison, a minimum penalty of five years in prison, a $250,000 fine, and up to a lifetime of supervised release. Sentencing is scheduled for June 28, 2017.

Acting U.S. Attorney Fitzpatrick credited special agents of the Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Terence S. Opiola; and inspectors of the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge John Walker, Philadelphia Division, with the investigation leading to today’s plea.

The government is represented by Assistant U.S. Attorney Molly S. Lorber of the U.S. Attorney’s Office Criminal Division in Trenton.

NEWARK, N.J. – A Pennsylvania man was charged today with abusing his position as an employee of the U.S. Army Contracting Command New Jersey by accepting bribes in connection with renovation projects at Picattiny Arsenal (PICA) and at the Joint Base McGuire-Dix Lakehurst (Ft. Dix), Acting U.S. Attorney William E. Fitzpatrick announced.

Kevin Leondi, 56, of Stroudsburg, Pennsylvania, was arrested today at PICA. He is charged by complaint with knowingly and intentionally conspiring to defraud the United States and to demand, seek, receive, accept, and agree to accept bribes in return for being influenced in the performance of his official duties. He is scheduled to appear this afternoon before U.S. Magistrate Judge Steven C. Mannion in Newark federal court.

According to the complaint:

Leondi represented the Army as a liaison with contractors on renovation projects at PICA and Ft. Dix. A contractor (Contractor No. 1) owned and operated a construction company in Pennsylvania that had subcontracts with a business (Company No. 1) that operated as a prime contractor with respect to various construction projects at PICA and Fort Dix. From December 2010 through August 2015, Leondi demanded and accepted more than $125,000 in bribes from Contractor No. 1 in return for assisting Contractor No. 1 obtain and retain subcontracts and other favorable assistance at PICA and Fort Dix. The bribes included direct payments by Contractor No.1 to Leondi, Contractor No. 1’s purchase of unneeded equipment from Leondi at inflated prices, and Contractor No. 1’s payment for construction work done by another contractor at Leondi’s personal property. Leondi also demanded and accepted more than $30,000 in bribes from someone who managed large-scale construction projects (Project Manager No. 1) for Contractor No. 1. The bribes included cash payments as well as the purchase by Leondi of a truck from Contractor No. 1 at a significantly discounted price.  

Leondi also directed Contractor No. 1 to perform free construction work at Project Manager No. 1’s home in Pennsylvania and to pay Project Manager No. 1 approximately $50,000 to help Project Manager No. 1 pay his mortgage.

The conspiracy count with which Leondi is charged carries a maximum potential penalty of five years in prison and a $250,000 fine.

Acting U.S. Attorney Fitzpatrick credited special agents with the FBI, under the direction of Special Agent in Charge Timothy Gallagher; the U.S. Department of Defense, Defense Criminal Investigative Service, under the direction of Special Agent in Charge Leigh Barzey; and the U.S. Army, Major Procurement Fraud Unit, Criminal Investigation Command, under the direction of Special Agent in Charge Larry Scott Moreland, with the investigation leading to today’s charges.   

The government is represented by Senior Litigation Counsel Leslie Faye Schwartz, of the U.S. Attorney’s Office’s Special Prosecutions Division, and Assistant U.S. Attorney Barbara Llanes, Deputy Chief, General Crimes Unit, of the U.S. Attorney’s Office’s Criminal Division, in Newark.    

Defense counsel: Ernest D. Preate, Jr. Scranton, Pennsylvania

NEWARK, N.J. – A Monsey, New York, man admitted today that he assaulted with the intent to stalk a woman on a flight from Israel to Newark Liberty International Airport, Acting U.S. Attorney William E. Fitzpatrick announced.

 

Yoel Oberlander, 36, pleaded guilty before U.S. District Judge Esther Salas in Newark federal court to a superseding information charging him with assault with intent to commit stalking.

 

According to the Superseding Information:

 

While on an El Al flight from Tel Aviv to Newark on May 29, 2016, Oberlander knowingly and intentionally assaulted an adult female victim with the intent to harass and intimidate her, and such conduct caused or could be reasonably expected to cause the victim substantial emotional distress.

 

Oberlander admitted that he assaulted the female victim, who was seated next to him on the plane, that he touched her in the area of her chest, upper thigh, and hand without her consent, and that he did so with the intent to harass and intimidate her.

 

Oberlander faces a maximum potential penalty of 10 years in prison and a $250,000 fine. Sentencing is scheduled for June 28, 2017.

 

Acting U.S. Attorney Fitzpatrick credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, and the Port Authority of New York-New Jersey, with the investigation leading to the charges.

The government is represented by Assistant U.S. Attorneys Melissa M. Wangenheim and Joyce M. Malliet of the U.S. Attorney’s Criminal Division in Newark.

Defense counsel: Eric Kanefsky Esq., Newark

NEWARK, N.J. – Two men were each sentenced to 17 months in prison today for their roles in a conspiracy to illegally transport foreign nationals into the United States via commercial airline flights, Acting U.S. Attorney William E. Fitzpatrick announced.

Nileshkumar Patel, 42, and Harsad Mehta, 67, both of India, previously pleaded guilty before U.S. District Judge William J. Martini to separate superseding informations charging them each with one count of conspiracy to smuggle foreign nationals into the United States for commercial advantage and private financial gain. Judge Martini imposed the sentences today in Newark federal court.

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

Patel and Mehta admitted that from June 2013 through October 2015, they conspired to make money by recruiting Indian nationals to enter and reside in the United States illegally. Patel and Mehta admitted that on July 24, 2014, they brought two Indian nationals to Bangkok, Thailand, so that they could be transported into the United States. They also admitted paying an individual – who was actually an undercover officer – to transport the foreign nationals from Thailand into Newark.

In addition to the prison terms, Judge Martini sentenced them Patel and Mehta to three years of supervised release.

Acting U.S. Attorney Fitzpatrick credited special agents of the U.S. Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Terence S. Opiola in Newark, with the investigation.

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

Also Charged with Defrauding Nursing Home, Family Friends

PHILADELPHIA – A federal grand jury today returned a 23-count indictment charging Philadelphia District Attorney Rufus Seth Williams with bribery, extortion, and honest services wire fraud in connection with tens of thousands of dollars’ worth of concealed bribes that he received from two business owners in exchange for his agreement to perform official acts. The indictment also charges Williams with defrauding a nursing home and family friends of money earmarked for a family member’s care.

The charges were announced today by Acting New Jersey U.S. Attorney William E. Fitzpatrick, along with FBI Special Agent in Charge Michael Harpster, Philadelphia Division; Acting Special Agent in Charge Gregory Floyd of IRS-Criminal Investigation, Philadelphia Office; and Special Agent in Charge Marlon V. Miller of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) Philadelphia.

Williams, 50, of Philadelphia, is charged with 10 counts of travel and use of interstate facilities to promote and facilitate bribery contrary to Pennsylvania law (the “Travel Act counts”), two counts of Hobbs Act extortion under color of official right, five counts of honest services wire fraud, and six counts of wire fraud. He will be arraigned in U.S. District Court in Philadelphia on a date to be determined.

“The indictment alleges that as District Attorney, Mr. Williams compromised himself and his elected office by standing ready to help those who were willing to pay him with money, trips, and cars,” Acting U.S. Attorney William E. Fitzpatrick said. “Mr. Williams’ alleged willingness to compromise his position of public trust in exchange for private financial gain is all the more unfortunate given that he was elected to protect the interests of the people of Philadelphia as their chief law enforcement officer.”

“The alleged misconduct, as specifically laid out in this indictment, is brazen and wide-ranging, as is the idea that a District Attorney would so cavalierly trade on elected office for financial gain,” FBI Special Agent in Charge Harpster said. “The immense authority vested to law enforcement has to be kept in check, and that requires decision-makers and leaders with a steady ethical compass. When elected or appointed officials stray from their sworn oaths, they must be held accountable. Combating public corruption remains the FBI's top criminal priority."

According to the indictment:

From July 2010 to July 2015, Williams solicited and accepted a stream of bribes from two business owners in exchange for Williams performing and agreeing to perform official acts for the business owners and their associates. In order to conceal these illegal arrangements, Williams filed false and misleading personal financial statements for the years 2012 through 2015, which intentionally omitted references to the valuable items that Williams received from the business owners during those years. After Williams learned of the federal investigation, he amended those financial disclosure statements to list many of the items listed in the indictment, excluding a pre-owned 1997 Jaguar he received in June 2013.

The Unlawful Arrangement with Business Owner #1

From July 2010 through May 2015, Williams allegedly solicited and accepted a number of valuable items from an individual identified in the indictment as “Business Owner #1,” including an all-inclusive vacation to Punta Cana worth $6,381, a custom sofa worth $3,212, a $502 dinner at a Philadelphia restaurant, a $7,000 check, approximately $2,000 in cash, a Louis Vuitton tie worth $205, an iPad worth approximately $300, a Burberry watch, and a Burberry purse for Williams’ girlfriend.

In exchange, Williams agreed to help Business Owner #1 with security screenings when Business Owner #1 returned from foreign travel. On numerous occasions, Williams contacted a Philadelphia police official in order to pressure and advise the police official to assist Business Owner #1 with those border encounters. On March 15, 2013, Williams met with the police official and Business Owner #1 and asked the police official to help Business Owner #1 avoid secondary screening. That same day, Williams accepted a $7,000 check from Business Owner #1. Williams also repeatedly offered to write an official letter, under his authority as the District Attorney, on behalf of Business Owner #1 to pressure and advise the police official to assist Business Owner #1 with the border encounters.

Williams agreed to assist with criminal charges brought by the Philadelphia District Attorney’s Office against Business Owner #1’s associate, an individual identified in the indictment as “Person #1.” Between Feb. 1, 2012, and Feb. 5, 2012 – while on the Punta Cana vacation paid for by Business Owner #1 – Business Owner #1 asked Williams to help with Person #1’s charges, and Williams agreed. On Feb. 8, 2012, just days after returning from Punta Cana, Williams received a text message from Business Owner #1 listing the docket number and hearing date for Person #1’s case. The text message stated that Person #1 would “take any punishment” but “just doesn’t wanna do jail!” Williams responded with a text message stating: “I will look into it.” Moments later, Williams asked about a second anticipated trip to Punta Cana paid for by Business Owner #1 and stated “I am merely a thankful beggar and don’t want to overstep my bounds in asking...but we will gladly go.”

When Business Owner #1 sent a text message in September 2012 again asking Williams to assist Person #1, Williams responded with text messages saying, among other things, “It seems like he has the possibility of having it thrown out or continued ... if it gets continued I will then ask for the file and see what can be done to make it a county sentence...”

The Unlawful Arrangement with Business Owner #2

From March 2012 through July 2015, Williams solicited and accepted from a Philadelphia bar owner identified in the indictment as “Business Owner #2” approximately 16 round-trip airline tickets to Florida, San Diego, and Las Vegas for himself, his girlfriend and members of his family. Williams also solicited and accepted from Business Owner #2 a 1997 Jaguar XK8 convertible and at least $900 in cash.

In return for the benefits that he received from Business Owner #2, Williams appointed Business Owner #2 as Special Advisor to the Philadelphia District Attorney’s office in November 2012, including issuing an official badge, writing an official letter of appointment, and giving certain assignments to Business Owner #2 as Special Advisor. At the time, Business Owner #2 was on federal probation resulting from a June 2010 federal tax conviction.

In May 2013, Business Owner #2 requested that Williams write an official letter, as the Philadelphia District Attorney, acknowledging Business Owner #2’s appointment as Special Advisor to his office. On May 10, 2013, Williams provided the letter to Business Owner #2. In June 2013, Williams accepted the Jaguar from Business Owner #2.

On June 2, 2014, Williams issued a second official letter to the California Department of Alcoholic Beverage Control in order to influence a then-pending hearing to revoke or suspend Business Owner #2’s California liquor license.

In July 2015, Williams obtained a police accident report at Business Owner #2’s request. During this time, Williams sent text messages to Business Owner #2 saying, among other things, “I wish I could help more,” “Can I be a greeter or celebrity bartender to work off my debt…?” and “…I was serious about just doing whatever I can to help you guys!”

The Fraud on the Nursing Home and Family Friends

From February 2012 through November 2013, Williams allegedly diverted a relative’s pension and Social Security payments to pay for his own personal expenses instead of applying them to the relative’s nursing home costs, as was his obligation under agreements with the nursing home. Williams also falsely told a nursing home employee his relative spent the pension and Social Security payments. In addition, after accepting $10,000 from friends of his relative intended to cover expenses for the relative’s nursing home care, Williams spent the money on his personal expenses instead.

“Rooting out public corruption remains one of the IRS-Criminal Investigation’s highest priorities,” IRS Acting Special Agent in Charge Gregory Floyd said. “Today’s indictment underscores our commitment to work in a collaborative effort to promote honest and ethical government at all levels and to prosecute those who allegedly violated the public’s trust.”

“Homeland Security Investigations will continue to work with our law enforcement partners to bring to justice public officials who betray the trust of the community by engaging in unscrupulous behavior,” Marlon V. Miller, special agent in charge of HSI Philadelphia, said. “The public places an enormous amount of trust in elected officers, as such, they should be held accountable to a higher standard of conduct. HSI is pleased with the results of this criminal investigation and the collaborative efforts between our agency and our counterparts at the FBI and IRS.”

Each of the Travel Act counts is punishable by a maximum potential penalty of five years in prison. The Hobbs Act extortion under color of official right and the wire fraud charges are punishable by a maximum potential penalty of 20 years in prison. Each count carries a potential fine of $250,000 or twice the gross gain or loss from the offense. The indictment also seeks forfeiture of a total of $54,466, representing the sum of $34,146 worth of bribe proceeds and $20,320 worth of fraud proceeds.

Acting U.S. Attorney Fitzpatrick credited special agents of the FBI, under the direction of Special Agent in Charge Harpster; special agents of IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Floyd; and special agents of the HSI Philadelphia, under the direction of Special Agent in Charge Miller, with the investigation leading to today’s indictment. He also thanked the U.S. Department of Health and Human Services-Office of Inspector General, under the direction of Special Agent in Charge Nick DiGiulio, for its participation in the investigation.

The U.S. Attorney in the Eastern District of Pennsylvania recused his office from the investigation involving the Philadelphia District Attorney’s Office, and the matter was assigned to the U.S. Attorney’s Office for the District of New Jersey. Two prosecutors from the Eastern District of Pennsylvania office were assigned to the case, subject to the supervision of prosecutors in the New Jersey office.

The government is represented by Deputy Chief Eric W. Moran of the U.S. Attorney’s Office Criminal Division in Newark and Chief of Appeals Robert A. Zauzmer and Assistant U.S. Attorney Vineet Gauri of the U.S. Attorney’s Office in Philadelphia.

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

NEWARK, N.J. – A Dracut, Massachusetts, man who allegedly made arrangements to engage in sexual conduct with a child was arrested this morning at a North Jersey hotel, Acting U.S. Attorney William E. Fitzpatrick announced. 

Richard Bly, 66, is charged by criminal complaint with one count of online enticement of a minor to engage in criminal sexual conduct. He appeared this afternoon before U.S. Magistrate Judge Leda Dunn Wettre in Newark federal court and was detained.

According to the complaint:

On Feb. 7, 2017, Bly posted an advertisement on an internet website seeking to meet a parent willing to make their child available to him for sexual activity. Over the course of several weeks, Bly had numerous e-mail exchanges with an undercover law enforcement agent posing as the mother of an eight-year-old girl. Bly repeatedly expressed his interest in engaging in sexual activity with the child and made plans to meet the child and her mother at a hotel in Ramsey, New Jersey. Law enforcement officers arrested Bly this morning at the hotel.

The online enticement of a minor charge carries a maximum potential penalty of life in prison, a mandatory minimum prison sentence of 10 years, and a $250,000 fine. 

Acting U.S. Attorney Fitzpatrick credited special agents of Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Newark Division, under the direction of Special Agent in Charge Terrence Opiola, with the investigation. He also thanked the Bergen County Prosecutor’s Office, under the direction of under the direction of Bergen County Prosecutor Gurbir S. Grewal, for its assistance.

The government is represented by Assistant U.S. Attorney Joshua L. Haber of the U.S. Attorney’s Office General Crimes Unit.   

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

NEWARK, N.J. – A Newark man today admitted to robbing a Valley National bank in Belleville, New Jersey, in April 2016, Acting U.S. Attorney William E. Fitzpatrick announced.

Donald Myer, 60, pleaded guilty before U.S. District Judge Jose L. Linares in Newark federal court to an information charging him with one count of bank robbery.

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

Myer admitted that during the robbery, he passed a note to a bank employee wherein he threatened to use a gun while demanding money from the bank employees.

The bank robbery charge to which Myer pleaded guilty carries a maximum penalty of 20 years in prison and a $250,000 fine. Sentencing is scheduled for June 27, 2017.

Acting U.S. Attorney Fitzpatrick credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, with the investigation leading to today’s guilty plea. He also thanked the Belleville, Kearny, and Port Authority police departments for their contributions to the case.

The government is represented by Assistant U.S. Attorney Veronica Allende of the U.S. Attorney’s Office in Trenton.

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

TRENTON, N.J. – A Camden, New Jersey, man was sentenced today to 151 months in prison for sex trafficking of a minor, Acting U.S. Attorney William E. Fitzpatrick announced.

 

Aaron J. Gray, 30, previously pleaded guilty before U.S. District Judge Peter G. Sheridan to an information charging him with one count of sex trafficking of a minor. Gray was originally charged in a criminal complaint with co-defendants Aja M. Easley, 24, of Camden, and Kenneth A. Mertz, 36, of Collingswood.

 

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

 

On March 2, 2015, Easley communicated with the victim, a minor, using a popular social media website. Easley told the victim she was “worried about” the victim because of a previous assault by the victim’s ex-boyfriend. She offered the victim money, food, clothing, and shelter, and met the victim at the Camden Transportation Center. There, Easley told the victim about a “dating website,” and said that the victim could make money through the website by going on “dates.”

 

Easley and the victim later met Gray and Mertz at a residence in Camden. Easley, Mertz, and Gray agreed to advertise the minor online for commercial sex acts for the purpose of earning money. To do so, Gray, Mertz, and Easley drove the minor to a motel in Cherry Hill.

 

At the motel, Gray and Easley convinced the victim to engage in commercial sex acts. Using her cellular telephone, Easley took provocative photos of the victim, and uploaded them to an online advertisement that she had created advertising the victim for commercial sex acts.

 

After the advertisement was online, Easley used her cellular telephone to communicate with multiple individuals who responded to the advertisement seeking to engage in commercial sex acts with the minor. Gray gave the victim instructions on what to do when the respondents arrived. Easley instructed the victim to tell the individuals that, regardless of her real age, that she was 21 years old. Easley also instructed the victim how much time each individual could spend with the victim at the motel and how much each individual owed the victim. Easley and Gray also told the victim that if any trouble arose, Gray would be outside the motel with a firearm. While at the motel in Cherry Hill, the victim engaged in sex acts in exchange for money with multiple individuals, which the defendants split between themselves and the victim.

 

The next day, at a motel in Mount Laurel, New Jersey, at the defendants’ direction, the victim again engaged in sex acts in exchange for money with multiple individuals who responded to the advertisement. Later that evening, the defendants told the victim that they were taking the victim to Atlantic City, New Jersey, to meet another person who had responded to the advertisement and was willing to pay $1,200 for an entire evening with the victim.

 

On the way to Atlantic City, the defendants agreed to let the victim stop at a residence in Gloucester City, New Jersey. The victim went inside and contacted the police, leading to the defendants’ arrest.

 

In addition to the prison term, Judge Sheridan sentenced Gray to 10 years of supervised release.

 

On Aug. 17, 2016, Easley pleaded guilty before Judge Sheridan to an information charging her with one count of sex trafficking of a minor. Easley is awaiting sentencing.

 

Acting U.S. Attorney Fitzpatrick credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher, and members of the Mount Laurel Police Department, under the direction of Police Chief Dennis Cribben, and the Gloucester City Police Department, under the direction of Acting Police Chief Brian Morell, with the investigation leading to today’s sentencing.

 

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

 

The charges and allegations against Mertz remain merely accusations, and he is considered innocent unless and until proven guilty.

 

Defense Counsel: Andrea D. Bergman Esq., Federal Public Defender’s Office, Trenton

CAMDEN, N.J. – A Virginia man appeared in federal court today to face charges that he robbed a TD Bank in Ocean City, New Jersey, and a Wells Fargo Bank in Atlantic City, New Jersey, Acting U.S. Attorney William E. Fitzpatrick announced.

Bruce Wayne Higgins, 43, of Herndon, Virginia, is charged by complaint with two counts of bank robbery. Higgins appeared this afternoon before U.S. Magistrate Judge Karen M. Williams in Camden federal court and was detained.

According to the complaint:

On Dec. 15, 2016, a man entered a TD Bank in Ocean City and presented a teller with a note that read: “GUN IN Pocket, MONEY NOW or –BANG-.” He then took cash from the teller and fled on foot. Afterwards, law enforcement officers issued a bulletin with a bank surveillance photograph. The robber was later identified as Higgins.

On Dec. 16, 2017, a man fitting Higgins’s description walked into a TD Bank in Atlantic City. After recognizing Higgins from the police bulletin, a bank employee triggered the bank’s “hold-up” alarm, and Higgins left the bank and got into a taxicab. Officers from the Atlantic City Police Department (ACPD) arrived at the TD Bank and, following up on information provided by witnesses, issued a bulletin describing the taxicab’s number and direction of travel.

Having received the bulletin describing the taxicab, another ACPD officer located the taxicab near a Wells Fargo Bank in Atlantic City while Higgins was allegedly in the process of robbing that bank. Higgins entered the Wells Fargo Bank and presented a teller with a note that read, “Gun in Pocket, Money Now or Bang now.” After Higgins took the money and fled the bank, ACPD officers arrested him.

Higgins had been detained at the Atlantic County Jail on state charges relating to the bank robberies.

Each bank robbery count 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.

Acting U.S. Attorney Fitzpatrick credited special agents with the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark; the Ocean City Police Department, under the direction of Chief Chad Callahan; the Atlantic City Police Department, under the direction of Chief Henry White; the Cape May County Prosecutor’s Office, under the direction of Prosecutor Robert L. Taylor; and the Atlantic County Prosecutor’s Office, under the direction of Prosecutor Damon Tyner, with the investigation.

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

Defense Counsel: Lori Koch Esq., Assistant Federal Public Defender, Camden

This afternoon, the President requested my resignation, along with the remaining presidentially appointed U.S. Attorneys across the country, effective at midnight tonight.

It has been the greatest professional experience that I can possibly imagine to have served in this office for the past seven-and-a-half years. Having spent so much of my career working to protect the interests of the people of New Jersey, I can think of no greater form of public service.

I am enormously grateful for the opportunity I was given to lead the men and women who work in this office. They are the most extraordinary group of public servants I have ever known, and I am more than honored to have been their colleague.

CAMDEN, N.J. – The owner of KLA International Inc., Quad Trade Services Inc., and TCI Technologies Inc., today admitted his role in a conspiracy to defraud approximately 40 businesses out of more than $1 million, U.S. Attorney Paul J. Fishman announced.

Keith B. Fisher Sr. 59, of Philadelphia, Pennsylvania, pleaded guilty before U.S. District Judge Renée Marie Bumb in Camden federal court to a superseding information charging him with one count of conspiracy to commit mail fraud.

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

From February 2010 through August 2015, Fisher and his conspirators, through the use of three purported commercial supply companies, bid on federal contracts through FedBid.com, an online marketplace that provided reverse auction services and enabled government agencies to post requirements for goods or services with the intention of attracting quotes and offers from vendors. Upon submitting a winning bid, Fisher’s companies were awarded contracts to provide goods to the respective government agency.

Fisher and his conspirators orchestrated the fraud by subcontracting with third-party vendors throughout the United States to provide these goods to the respective government agencies. isher and his conspirators induced the third-party vendors to ship the goods to the government agencies on credit by falsely promising to pay the vendors for the goods and making false and fraudulent representations to the vendors about the credit-worthiness, business history, and financial status of Fisher’s companies. Fisher and his conspirators provided the vendors with fraudulent credit applications, false trade references, and fraudulent information about the financial status of his companies. Upon receipt of the goods and materials supplied by the third-party vendors, the government agencies paid Fisher and his conspirators. Fisher, in turn, failed to pay or only made nominal payments to the 40 victim vendors, who were owed more than $1 million for the goods and materials supplied to the government.

The charge to which Fisher pleaded guilty carries a maximum potential penalty of five years in prison and a maximum fine of $250,000 or twice the gross gain or loss associated with the offense, whichever is greatest. Sentencing is scheduled for June 19, 2017.

U.S. Attorney Fishman credited special agents with the U.S. Department of the Interior, Office of Inspector General, under the direction of Special Agent in Charge Michael V. Graziano, special agents with the U.S. Naval Criminal Investigative Service - Northeast Field Office, under the direction of Special Agent in Charge Leo S. Lamont, special agents with the U.S. Army Criminal Investigation Command - Mid-Atlantic Fraud Field Office, under the direction of Special Agent in Charge L. Scott Moreland, special agents with the Department of Veterans Affairs, Office of Inspector General – Northeast Field Office, under the direction of Special Agent in Charge Donna L. Neves, special agents from the U.S. Department of Justice, Office of Inspector General - Fraud Detection Office, under the direction of Special Agent in Charge Lewe Sessions, and Postal Inspectors with the United States Postal Inspection Service, under the direction of Inspector in Charge David Bosch, for conducting the investigation leading to today’s guilty plea.

The government is represented by Assistant U.S. Attorneys Matthew J. Skahill and Diana Vondra Carrig of the U.S. Attorney’s Office in Camden.

Also Sentenced for Wire Fraud and Identity Theft Charges

CAMDEN, N.J. – A New York man was sentenced today to 300 months in prison for engaging in illicit sexual conduct with a 12-year-old girl and falsely claiming he had cancer in order to defraud victims out of $150,000, U.S. Attorney Paul J. Fishman announced.

Joseph Anthony Caracciolo, 50, previously pleaded guilty before U.S. District Judge Renée Marie Bumb to a four-count information charging him with traveling in interstate commerce to engage in illicit sexual conduct with a minor, committing that offense while being an unregistered sex offender with a duty to register under state and federal law, wire fraud and aggravated identity theft. Judge Bumb imposed the sentence today in Camden federal court.

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

Caracciolo admitted that on numerous occasions between June 2012 and August 2012, he travelled to New Jersey and Pennsylvania to engage in sexual intercourse with a then 12-year-old-girl, identified as “Victim 1” in the information. During this time, Caracciolo was not registered as a sex offender as required by his 1993 rape conviction in the Superior Court of Hampden County in Springfield, Massachusetts.

In July 2009, Caracciolo became romantically involved with a woman, identified in the information as “Victim 2,” with whom he had a child. Caracciolo admitted that he asked Victim 2’s parents to help pay for his cancer treatments, even though he wasn’t actually diagnosed with cancer. From December 2011 through August 2013, Victim 2’s father wired Caracciolo more than $150,000. Caracciolo also admitted that during this time, he used the identity of “Anthony Scibelli,” a Massachusetts man who died in 1998, to perpetuate the fraud.

Following the entry of Caracciolo’s guilty plea before Judge Bumb in January 2016, Caracciolo sought to withdraw his guilty plea in January 2017. At a hearing on Caracciolo’s motion to withdraw his guilty plea, Caracciolo admitted under cross-examination that he has lived a life of lies, including by telling people that he was a pediatric dentist and a celebrity chef, conning and deceiving women from coast to coast, selling sports memorabilia on eBay that he knew was not authentic, and selling fake cellphones and stereos.

In addition to the prison term, Judge Bumb sentenced Caracciolo to serve a lifetime of supervised release.

U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, as well as the Egg Harbor Township Police Department, the U.S. Marshals Fugitive Task Force, and members of the “Innocence Lost” Task Force from the Atlantic County Prosecutor’s Office and the Atlantic County Sheriff’s Office, with the investigation leading to today’s sentence.

The government is represented by Assistant U.S. Attorney Justin C. Danilewitz of the U.S. Attorney’s Office in Camden.

Defense counsel: Peter Levin Esq., Philadelphia, Pennsylvania     

NEWARK, N.J. –A New York man was charged today with robbing a bank in Fort Lee, New Jersey, U.S. Attorney Paul J. Fishman announced.

Isaac Nesbit, 30, is charged by complaint with one count of bank robbery. He is expected to make his initial appearance today before U.S. Magistrate Judge James B. Clark III in Newark federal court.

According to the complaint:

On Jan. 20, 2017, Nesbit allegedly entered the Bank of New Jersey in Fort Lee and presented the teller a note demanding cash and threatening to shoot everyone if the teller did not comply. After Nesbit left the bank with stolen money, law enforcement recovered the note and the clothes worn by Nesbit in a nearby dumpster. Nesbit was spotted and apprehended by law enforcement a short time later during a canvas of the surrounding area. The stolen cash was recovered from Nesbit’s back pocket. Nesbit has been detained in the Bergen County Jail on state charges related to the robbery.

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

U.S. Attorney Fishman credited special agents with the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark; the Bergen County Prosecutor’s Office, under the direction of Prosecutor Gurbir S. Grewal; and the Fort Lee Police Department, under the direction of Chief Keith M. Bendul, with the investigation leading to the charges.

The government is represented by Assistant U.S. Attorney Sammi Malek of the U.S. Attorney’s Office General Crimes Unit in Newark.

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

CAMDEN, N.J. – A Delran, New Jersey, man will appear in federal court today to face charges that he abused his position as a U.S. Postal Service supervisor to steal cash deposits, U.S. Attorney Paul J. Fishman announced.

Amar D. Patel, 35, is charged by complaint with knowingly embezzling, stealing, purloining, and converting to his use U.S. Postal Service funds exceeding $1,000. He is scheduled to appear this afternoon before U.S. Magistrate Judge Ann Marie Donio in Camden federal court.

According to the complaint:

In July 2016, the U.S. Postal Service Office of Inspector General started investigating shortages in cash deposits reported by the Riverside, New Jersey, Delanco, New Jersey, and Delran post offices. Patel – who was a supervisor at those three offices – had access to deposit bags containing cash acquired during retail operations.

As part of the investigation, agents installed covert surveillance cameras inside the Riverside post office. On Jan. 14, 2017, one of the surveillance cameras captured images of Patel tearing open a sealed deposit bag, removing cash deposits, and placing the funds into his pocket. According to U.S. Postal Service financial records and bank deposit records, the Riverside office’s deposit was short $1,650 on Jan. 14, 2017.

Based on this and other information, Patel is accused of stealing $15,700 in U.S. Postal Service funds on 12 separate occasions from Feb. 20, 2016, through Jan. 14, 2017.

The embezzlement charge carries a maximum potential penalty of 10 years in prison and a $250,000 fine.

U.S. Attorney Fishman credited special agents of the U.S. Postal Service, Office of the Inspector General, under the direction of Monica Weyler, U.S. Postal Service Office of Inspector General Special Agent in Charge, Philadelphia, Pennsylvania.

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

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 Somerset, New Jersey, man was convicted by a federal jury today of accepting cash bribes and sex in exchange for providing employment authorization documents and concealing his employment of an undocumented immigrant at a hair salon he owned, U.S. Attorney Paul J. Fishman announced.

Arnaldo Echevarria, 39, a former deportation officer with Immigration and Customs Enforcement (ICE), was convicted of Counts 1-6 and Counts 8 and 9 of an indictment charging him with seven counts of accepting bribes, one count of harboring an undocumented immigrant and one count of making false statements to immigration authorities. He was acquitted on Count 7, one of the bribery counts. Echevarria was convicted following a one-week trial before U.S. District Judge Esther Salas in Newark federal court. The jury deliberated for one day before returning the guilty verdict.

According to statements made in court and evidence presented at trial:

As a deportation officer, Echevarria enforced immigration and customs laws by identifying, locating, arresting and removing undocumented immigrants from the United States and by supervising certain undocumented immigrants who had not yet been deported. Undocumented immigrants subject to a deportation order often were able to obtain employment authorization documents which allowed them to legally work in the United States for a one-year period and which could be renewed annually.

Between 2012 and 2014, Echevarria agreed to obtain employment authorization documents for undocumented immigrants who were not lawfully present in the country. In return, Echevarria demanded and received approximately $75,000 in cash bribes, and demanded and received sex from one individual. In order to conceal them from immigration authorities, Echevarria falsely stated that they had been granted temporary protected status, which allows nationals from certain countries experiencing environmental disaster, ongoing armed conflict, or other extraordinary conditions to lawfully remain in the United States. None of the individuals who bribed Echevarria had actually applied for, or received, temporary protected status.

In December 2012, Echevarria received permission from his superiors at ICE to open a hair salon in West Orange, New Jersey. Echevarria certified to ICE that the hair salon would not conflict with ICE matters and would not involve undocumented workers. However, Echevarria employed his girlfriend at the time, an undocumented immigrant, to manage the salon. Echevarria’s girlfriend had entered the United States illegally, using the name and identification of an individual in Puerto Rico to obtain a Pennsylvania identification card.

Echevarria knew his girlfriend resided in the United States illegally. Prior to opening the hair salon, Echevarria queried the name and date of birth of his girlfriend’s alias in various law enforcement databases. After opening the salon, Echevarria ensured that his girlfriend’s illegal status remained a secret by signing the lease for her apartment and by placing her cable and electric bills in his name. In addition to driving his girlfriend and other employees to and from the salon each day, Echevarria also paid the employees in cash and never asked them to fill out employment eligibility paperwork.

The six bribery counts on which Echevarria was convicted each carry a maximum potential penalty of 15 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense, or three times the monetary equivalent of the things of value accepted by the defendant. The charges of harboring and making false statements are each punishable by a maximum potential penalty of five years in prison and $250,000 fine, or twice the gross gain or loss arising from the offense. Echevarria’s sentencing is scheduled for June 19, 2017.

U.S. Attorney Fishman credited special agents of ICE, Office of Professional Responsibility, under the direction of Special Agent in Charge Keith Barwick, with the investigation leading to today’s guilty verdict.

The government is represented by Assistant U.S. Attorneys Rahul Agarwal of the U.S. Attorney’s Office Special Prosecutions Division in Newark, and Barbara Llanes, Deputy Chief of the General Crimes Unit.

NEWARK, N.J. – A grocery store owner from Union County, New Jersey, was sentenced today to 24 months in prison for stealing more than $1.1 million through a food stamp scheme, U.S. Attorney Paul J. Fishman announced.

Charles Silva, 33, of Hillside, New Jersey, previously pleaded guilty before U.S. District Judge Stanley R. Chesler to an information charging him with one count of theft of government funds. Judge Chesler imposed the sentence today in Newark federal court.

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

Silva was the owner of Checkpoint Mini Mart, a small convenience store in Elizabeth, New Jersey. Checkpoint was authorized to accept Supplemental Nutrition and Assistance Program (SNAP) benefits (formerly known as food stamps). The program is administered by the U.S. Department of Agriculture.

Silva admitted he controlled a business bank account to receive the reimbursements for SNAP benefits. He knew that as a SNAP retailer, he was not allowed to exchange food stamps for cash.

From June 2015 through May 2016, he and others under his supervision illegally permitted recipients of SNAP benefits to redeem those benefits at Check Point Mini Mart for cash rather than food. Silva admitted that, in general, he and other employees redeemed SNAP benefits for approximately 30 cents on the dollar. He also admitted that from June 2015 through May 2016, Check Point Mini Mart received through its business account $1,131,063 for illegally redeemed SNAP benefits.

Silva admitted that shortly after receiving the money in the Check Point Mini Mart account, he transferred the money to another account which he used to pay personal expenses.

In addition to the prison term, Judge Chesler ordered Silva to serve three years of supervised released, forfeit $370,000 in criminal proceeds, and pay restitution of $990,000.

U.S. Attorney Fishman credited special agents of the U.S. Department of Agriculture, Office of Inspector General, under the direction of Special Agent in Charge Bethanne M. Dinkins in New York.

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

Defense counsel: John P. McGovern Esq., Newark

CAMDEN, N.J. - Two Vineland, New Jersey, men were federally charged in connection with a Cumberland County, New Jersey, bank robbery, U.S. Attorney Paul J. Fishman announced.

Nathan L. Wallace, 28, and Quintin L. Jones, 34, are charged in separate complaints with one count of bank robbery. Wallace will appear this afternoon before U.S. Magistrate Judge Joel Schneider in Camden federal court. Jones is scheduled to appear before Judge Schneider tomorrow morning. Both defendants had been in state custody since their arrests on related charges in October 2016.

According to the complaint:

On Oct. 11, 2016, Wallace and Jones allegedly robbed a Cape Bank in Upper Deerfield Township, New Jersey. According to bank employees and video surveillance, two men wearing black hooded sweatshirts entered the bank. While one man crouched near the entrance and pointed what appeared to be a black revolver at employees, the other man approached bank tellers and directed them to place cash into a bag.

Afterwards, both robbers fled and employees observed a tan or gold vehicle with a black soft-top rapidly exit the parking lot and turn in the direction of Vineland. Security cameras at the bank and an employee also captured pictures of the car. Investigators determined that the car matched the description of a Chrysler Sebring that was stolen on Sept. 22, 2016 during a carjacking in the parking lot of a Walmart in Mays Landing, New Jersey.

The following Saturday, on Oct. 15, 2016, troopers with the N.J. State Police responded to a vehicle fire at a parking lot in Parvin State Park in Pittsgrove Township, New Jersey. After fire personnel extinguished the flames, troopers determined that the vehicle was the same car that had been stolen in the carjacking on Sept. 22, 2016.

Subsequent investigation revealed that Wallace and Jones had allegedly purchased a gas can at a Walmart in Vineland and then took a cab to a Wawa gas station near Parvin State Park, where they purchased gas shortly before police responded to the vehicle fire. Investigators also learned that Jones, who had been staying at a local hotel on Oct. 15, 2016, had been observed by an employee placing a large amount of cash in a bag. Acting on this and other information, the N.J. State Police later obtained state arrest warrants for Wallace and Jones along with search warrants for their residences. Law enforcement personnel who searched Wallace’s residence also found clothing consistent with the outfits worn by the two men during the Cape Bank robbery as well as a toy revolver, cash, gloves, and a car key that appeared to be for the Chrysler Sebring.

If convicted of the bank robbery charges, Wallace and Jones each face up to 20 years in prison and a $250,000 fine.

U.S. Attorney Fishman credited special agents of the FBI’s Atlantic City Resident Agency, under the direction of Timothy Gallagher in Newark; the FBI’s South Jersey Resident Agency, under the direction of Special agent in Charge Michael Harpster in Philadelphia; the N.J. State Police, under the direction of Col. Rick Fuentes, as well as the Vineland Police Department; the Hamilton Township Police Department; the Newfield Police Department; the Cumberland County Prosecutor’s Office, and the Salem County Prosecutor’s Office, with the investigation.

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

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

TRENTON, N.J. – A Trenton, New Jersey, man today admitted his role in a conspiracy to sell more than 1.5 kilograms of cocaine and more than 87 grams of cocaine base in the Trenton area, U.S. Attorney Paul J. Fishman announced.

William Enmond, 53, pleaded guilty before U.S. District Judge Michael A. Shipp in Trenton federal court to an information charging him with one count of conspiracy to distribute and possess with intent to distribute 500 grams or more of cocaine, and to manufacture, distribute, and possess with intent to distribute 28 grams or more of cocaine base.

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

From September of 2013 through his arrest on Jan. 13, 2016, Enmond conspired with co-defendants Bobby Williams, Khalfini Richardson and Capitol T. Wellons to distribute cocaine, and to manufacture and distribute cocaine base, primarily from two adjacent residences in Trenton. On Sept. 6, 2013, Enmond sold 446.5 grams of cocaine to a confidential government source in exchange for $17,320. Enmond admitted to conspiring to distribute and possess with intent to distribute 1.72 kilograms of cocaine and to conspiring to manufacture as well as distribute, and possess with intent to distribute, 87.9 grams of cocaine base.

U.S. Attorney Fishman credited special agents of the Drug Enforcement Administration (DEA), under the direction of Special Agent in Charge Carl J. Kotowski in Newark, and detectives of the Mercer County Prosecutor’s Office Special Investigations Unit, under the direction of Prosecutor Angelo J. Onofri, with the investigation leading to today’s guilty plea.

The count to which Enmond pleaded guilty carries a mandatory minimum sentence of five years in prison, a maximum of 40 years in prison and a fine of up to $5 million or twice the gross profits or other proceeds to Enmond. Sentencing is scheduled for June 13, 2017.

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

Charges and allegations pending against the remaining defendants are merely accusations, and they are considered innocent unless and until proven guilty.

Defense counsel: Mark G. Davis Esq., Hamilton, New Jersey

CAMDEN, N.J. – A former New Jersey lawyer was sentenced today to 48 months in prison for participating in a conspiracy that caused lenders to release $40.8 million based on fraudulent mortgage loan applications and laundered the proceeds of the fraud, U.S. Attorney Paul J. Fishman announced.

 

Joseph W. Witkowski, 70, of Flemington, New Jersey, previously pleaded guilty to an indictment charging him with one count each of conspiracy to commit wire fraud and conspiracy to commit money laundering. U.S. District Judge Joseph H. Rodriguez imposed the sentence today in Camden federal court.

 

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

 

Witkowski and his conspirators located oceanfront condominiums overbuilt by financially distressed developers in Wildwood Crest, New Jersey; premier real estate in vacation destinations in Georgia and South Carolina; and properties in New Jersey owned by financially distressed homeowners facing foreclosure. They then recruited “straw buyers” – people with good credit scores but lacking the financial resources to qualify for mortgage loans – to purchase those properties.

 

Witkowski and his conspirators created false documents, including fake W-2 forms, income tax returns, investment statements, and rental agreements, to make the straw buyers appear more creditworthy than they actually were. They also established numerous telephone lines for companies owned by some of the conspirators so that when a lender contacted the telephone number, the conspirators could falsely verify that a straw buyer was employed by the company listed on his or her fraudulent loan application.

 

Witkowski also caused fraudulent mortgage loan applications in the name of the straw buyers and supporting documents, which attributed to the straw buyers inflated income and assets, to be submitted to mortgage lenders. Once the loans were approved and the mortgage lenders sent the loan proceeds in connection with real estate closings on the properties, Witkowski and his conspirators had some of the funds wired or checks deposited into various accounts that he and his conspirators controlled.

 

In addition to the prison term, Judge Rodriguez sentenced Witkowski to three years of supervised release and ordered restitution of $13,105570. As part of his plea agreement, he must forfeit $2,412,899, representing the proceeds of the fraud.

 

U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher; and special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen, with the investigation leading to today’s sentencing.

 

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

 

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

CAMDEN, N.J. – A Cumberland County, New Jersey, woman was sentenced today to 12 months in prison her role in a conspiracy to boost business at a tax preparation company she operated by preparing bogus income tax returns for her clients, U.S. Attorney Paul J. Fishman announced.

 

Noemi Pender, 58, of Rosenhayn, New Jersey, previously pleaded guilty before U.S. District Judge Noel L. Hillman to Count One of an indictment charging her with conspiring to aid and assist others in the preparation of false and fraudulent tax returns. Judge Hillman imposed the sentence today in Camden federal court.

 

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

 

Pender was a tax preparer who operated Pender Tax Services in Rosenhayn. For the tax years 2007 through 2011, Pender and Grace Garrett, 64, of Pittsgrove, New Jersey, sought to increase referrals, enhance their business, and enrich themselves by preparing and filing income tax returns based on false information. They used a number of fraudulent practices, including falsely claiming a filer was a “head of household,” inventing and inflating deductions, creating fictitious dependents, and creating false credits for education and childcare.

 

The bogus returns resulted in a tax loss to the government of more than $340,000.

 

In addition to the prison term, Judge Hillman ordered Pender to serve three years of supervised release and pay restitution of $341,439.

 

U.S. Attorney Fishman credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen, with the investigation.

 

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

 

Defense counsel: Jeffrey Zucker Esq., Camden

NEWARK, N.J. – A man charged with robbing TD Banks in Fort Lee, New Jersey, and Hasbrouck Heights, New Jersey, made his initial court appearance today, U.S. Attorney Paul J. Fishman announced.

Eddy Cruz, 41, of Manhattan, New York, is charged by complaint with two counts of bank robbery. Cruz appeared this afternoon before U.S. Magistrate Judge James B. Clark III in Newark federal court and was detained.

According to the complaint:

On Feb. 13, 2017, Cruz allegedly entered a TD Bank in Fort Lee wearing a hat, sunglasses, and a tight-fitting mask. Cruz presented the teller with a note demanding cash and then left the bank with the stolen money.

On Feb. 18, 2017, Cruz entered another TD Bank in Hasbrouck Heights wearing a similar disguise. As in the previous robbery, Cruz presented a teller with a note demanding cash and then left with the stolen money.

On Feb. 24, 2017, law enforcement officers tracked his car, which had been spotted at one of the earlier bank robberies, to a location in Manhattan. Later that day, Cruz drove to yet another TD Bank in Englewood, New Jersey, where he was apprehended by FBI special agents outside the bank while wearing the same disguise that he allegedly used in the prior robberies.

Among the items recovered from Cruz following his arrest were latex gloves, a scarf, sunglasses, and the tight-fitting mask, all of which Cruz was wearing at the time of his arrest. In addition, law enforcement officers recovered a handwritten note demanding money from inside Cruz’s vehicle.

Cruz has been detained in the Bergan County Jail on state charges related to both bank robberies.

The bank robbery 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.

U.S. Attorney Fishman credited special agents with the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark and Acting Special Agent in Charge William Sweeney in New York; the Bergen County Prosecutor’s Office, under the direction of Bergen County Prosecutor Gurbir S. Grewal; the Fort Lee Police Department, under the direction of Police Chief Keith M. Bendul; the Hasbrouck Heights Police Department, under the direction of Police Chief Michael J. Colaneri; the Roxbury Police Department, under the direction of Chief Marc Palanchi; and the Paramus Police Department, under the direction of Chief Kenneth Ehrenberg. He also thanked the Greenburgh, New York, the 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 General Crimes Unit in Newark.

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

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

CAMDEN, N.J. - A Camden, New Jersey, man today admitted his role in a crack cocaine distribution conspiracy, U.S. Attorney Paul J. Fishman announced.

Tony Wilson, a/k/a “Tony Langston,” a/k/a “Tone,” and a/k/a “H,” 25, pleaded guilty before U.S. District Judge Jerome B. Simandle in Camden federal court to an information charging him with one count of conspiracy to distribute and to possess with intent to distribute cocaine base and one count of possession of a firearm in furtherance of a drug trafficking crime.

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

Wilson admitted that he was a member of an organization which sold crack cocaine in and around the 1100 block of Lansdowne Avenue in Camden. Wilson also admitted that he possessed a .40 caliber handgun in connection with the organization’s drug trafficking activities.

Wilson, Jason Boyd, Joseph Boyd, Preston Thomas, Derek Stallworth, Jeffrey Whitaker, Nafeez Griffin, and Julian Dickerson were originally charged by complaint on Sept. 9, 2016, following a long-term investigation by the FBI’s South Jersey Violent Offender and Gang Task Force. Law enforcement officers seized drugs and recovered two handguns that were kept by members of the conspiracy in connection with the organization’s drug trafficking activities. Investigators also intercepted communications pursuant to court-authorized wiretaps on cellular telephones used by several members of the conspiracy.

Two other charged conspirators have also pleaded guilty to drug conspiracy and firearm offenses.

On Jan. 17, 2017, Jason Boyd, 36, a/k/a “Teddy,” a/k/a “Teddy Reek,” and a/k/a “Fatboy,” pleaded guilty before Judge Simandle in Camden federal court to an information charging him with one count of conspiracy to distribute and to possess with intent to distribute cocaine base and one count of possession of a firearm in furtherance of a drug trafficking crime. Boyd’s sentencing is scheduled for April 28, 2017.

On Dec. 8, 2016, Derek Stallworth, 20, a/k/a “AK” and a/k/a “A,” of Camden, also pleaded guilty before Judge Simandle to the same charges. Stallworth’s sentencing is scheduled for March 24, 2017.

On Feb. 8, 2017, a federal grand jury also charged Preston J. Thomas, 30, a/k/a “Boo,” of Camden, in a superseding indictment with one count of conspiracy to distribute and to possess with intent to distribute cocaine base and one count of possession of a firearm in furtherance of a drug trafficking crime. In addition, the superseding indictment charged Jeffrey Whitaker, 33, a/k/a “Jay,” a/k/a “Jay Black,” and a/k/a “Black,” of Collingswood, with the same drug trafficking conspiracy offense.

Charges against Joseph Boyd, Nafeez Griffin, Julian Dickerson, Jeffrey Whitaker, and Preston Thomas remain pending.

The drug distribution conspiracy charges carry a maximum potential penalty of 20 years in prison and a $1 million fine. The firearms charges carry a mandatory minimum sentence of five years in prison to be served consecutively to the conspiracy charges. Sentencing is scheduled for June 16, 2017.

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

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

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

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

 

NEWARK, N.J. – A Passaic County, New Jersey, man was sentenced today to 24 months in prison for possession of multiple machineguns, which are illegal under federal law, U.S. Attorney Paul J. Fishman announced.

Mariusz Cebula, 36, Ringwood, New Jersey, previously pleaded guilty before U.S. District Judge Susan D. Wigenton to an information charging him with one count of knowingly possessing five machineguns, which are defined as weapons that can shoot more than one shot automatically, without manual reloading, by a single function of the trigger. Judge Wigenton imposed the sentence today in Newark federal court.

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

Cebula admitted that he possessed five machineguns, but agreed to forfeit to the Government an additional 12 machineguns and machinegun parts, all of which were possessed illegally, as well as 10 other firearms and firearm parts. The five machineguns specifically charged in the information were determined to be readily operational as automatic weapons, meaning that they required no modification to shoot more than one shot automatically by a single function of the trigger and without manual reload. Cebula obtained most of the firearms through purchases at gun shows from unlicensed gun sellers and on the Internet.
 
Besides the machineguns charged in the information and forfeited by him, Cebula also possessed numerous other firearms, weapons and ammunition, all of which have been administratively forfeited by the Passaic County Prosecutor’s Office. According to data published by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the town of Ringwood ranked number six on the list of top ten cities in New Jersey where guns were seized in 2015, behind Newark, Paterson, Trenton, Jersey City and Camden. Of the 93 recovered guns that propelled Ringwood, New Jersey to the sixth spot on the list, the overwhelming majority (approximately 80) were recovered from Cebula’s home.

In addition to the prison term, Judge Wigenton sentenced Cebula to three years of supervised release.

U.S. Attorney Fishman credited special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), under the direction of Acting Special Agent in Charge Scott C. Curley, and the Ringwood Police Department, under the direction of Chief Joseph Walker, with the investigation leading to the charge. He also thanked the Passaic County Prosecutor’s Office, under the direction of Prosecutor Camelia M. Valdes, for its role in the case.

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

Defense Counsel: Miles Feinstein Esq., Clifton, New Jersey

Court Also Fines Him $100,000, Orders Four Years’ Probation

NEWARK, N.J. – David Samson, the former chairman of the Board of Commissioners of the Port Authority of New York and New Jersey, was sentenced today to 12 months of home confinement and four years of probation for using his official authority to pressure the parent company of United Airlines Inc. to institute a non-stop flight from Newark to South Carolina for his personal benefit, U.S. Attorney Paul J. Fishman, Inspector General Michael Nestor of the Port Authority of New York and New Jersey, Office of Inspector General, and Special Agent in Charge Timothy Gallagher of the FBI’s Newark Division, announced.

Samson, 77, of Aiken, South Carolina, who served as New Jersey Attorney General from 2002 to 2003 and was the founding member and chairman of the law firm Wolff & Samson PC, previously pleaded guilty before U.S. District Judge Jose L. Linares in Newark federal court to an information charging him with one count of bribery. Judge Linares imposed the sentence today in Newark federal court.

“We believe that Mr. Samson’s crime, which involved a substantial violation of trust by a high-ranking public official, warranted a significant term of incarceration,” U.S. Attorney Fishman said. “Obviously we’re disappointed in the sentence, but we respect the court’s decision.”

 “The investigation, prosecution, and sentencing of David Samson demonstrates that no individual is above the law, and that no government employee may use their official position for personal gain,” Inspector General Nestor said. “The Port Authority Office of Inspector General will continue to fulfill its mission of rooting out corruption, no matter what level it may exist within the Port Authority. We commend our law enforcement partners for their cooperative effort and tireless work.”     

“The FBI’s stance on public corruption is that of zero tolerance and therefore one of our highest priorities,” Special Agent in Charge Gallagher said. “We in the FBI believe that public corruption is among the most serious of criminal violations. It is a betrayal of the public’s sacred trust. If allowed to grow, public corruption permeates all aspects of society and affects all other criminal priorities. And if allowed to spread unchecked, public corruption can threaten the very foundation of democracy. These charges reflect the FBI’s commitment to fighting public corruption and we will continue to aggressively pursue those that participate in these types of crimes.”

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

The Port Authority operates Newark Liberty International Airport, one of United’s largest hubs. In September 2011, several months after Samson became the chairman of the Port Authority, he and Jamie Fox, who at the time was a paid consultant and lobbyist for United Continental Holdings Inc. (United), the Chicago-based parent company of United Airlines Inc., met with representatives of United for dinner at a restaurant in New York. (Fox, who was the commissioner of the N.J. Department of Transportation from September 2014 to October 2015 and who was charged separately with conspiring with Samson to commit bribery, died Feb. 20, 2017.)

During that dinner and following a discussion of certain of United’s priorities for Newark Airport, Samson told the United representatives that Continental Airlines Inc., a predecessor of United, used to have non-stop flight route between Newark Airport and Columbia Airport, and that the route had made his travel from New Jersey to his home in South Carolina more convenient. A United representative responded that United generally stopped flying routes because they were not profitable, but told Samson that United would look into reinstating the Newark/Columbia route.

Subsequent to this dinner and additional inquiries from Fox on Samson’s behalf, United concluded that reinstating the Newark/Columbia route would not be profitable and communicated United’s lack of interest to Fox. Samson and Fox used Samson’s official position and authority as chairman of the Port Authority’s Board of Commissioners – which included control over the board’s agenda – to pressure United to reinstate the Newark/Columbia route. In November 2011, Samson and Fox were aware that an agreement between United and the Port Authority relating to United’s construction of a wide-body maintenance hangar at Newark Airport was to be presented to the Port Authority Board for its consideration at its Nov. 5, 2011, meeting. In an email exchange between Samson and Fox on Nov. 2, 2011, Samson and Fox discussed using Samson’s official authority to remove from the agenda the hangar agreement for the purpose of pressuring United to reinstate the Newark/Columbia route. Samson wrote Fox that he was “reviewing current Board agenda items of interest.” Referring to the hangar agreement, Fox suggested to Samson that “[m]aybe it needs further review!!!!!,” to which Samson responded “[y]es, it’s already off this month’s agenda: I hate myself.” Following through on this exchange with Fox, Samson caused the hangar agreement to be removed from the Port Authority Board’s agenda.         

In advance of the board’s next meeting on Dec. 8, 2011, Samson and Fox continued to use Samson’s official authority to pressure United. On multiple occasions, Fox communicated to United that its failure to reinstate the route had made Samson angry and was having a negative impact on United’s relationship with the Port Authority. Samson and Fox also discussed further using Samson’s official authority over the board’s agenda to pressure United. On Dec. 7, 2011, the day before the Port Authority Board’s meeting, Samson sent Fox an email telling him that Samson had given instructions to remove the hangar agreement from the agenda. Fox responded that he thought it was a good time to put the agreement back on the agenda and Samson agreed to do so. The Port Authority Board then considered the hangar agreement on Dec. 8, 2011, and approved it. Fox later emailed Samson: “Finally have their [United’s] attention. Having item off/on this week worked,” referring to the hangar agreement.

As a result of the repeated use of Samson’s official authority to pressure United by Samson and Fox, United decided to reinstate the Newark/Columbia route. Based on Samson’s preferred travel schedule to South Carolina, which Fox communicated to United, the airline implemented a weekly schedule that only included flights from Newark Airport to Columbia Airport departing at 6:00 p.m. on Thursdays (with a returning flight the same night) and from Columbia Airport to Newark Airport departing at 6:20 a.m. on Mondays (after a flight to Columbia Airport the evening before). United began flying the Newark/Columbia route in September 2012 and operated the route until March 2014. Samson used the Newark/Columbia route on 27 occasions between October 2012 and January 2014. Samson and others referred to the Newark/Columbia route as the “Chairman’s Flight” and Fox referred to it as “Samson Air.”   
      
In addition to home confinement and probation, Judge Linares sentenced Samson to 3,600 hours of community service and fined him $100,000.

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

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

Defense counsel: Michael Chertoff Esq., Washington, D.C., & Justin Walder Esq., Hackensack, New Jersey

NEWARK, N.J. – A family doctor practicing in Bergen County, New Jersey, was convicted today of all 10 counts of an indictment charging him with accepting bribes in exchange for test referrals as part of a long-running and elaborate scheme operated by Biodiagnostic Laboratory Services LLC (BLS), of Parsippany, New Jersey, its president and numerous associates, U.S. Attorney Paul J. Fishman announced.

Bernard Greenspan, 79, of River Edge, New Jersey, was convicted of one count of conspiring to commit violations of the Anti-Kickback Statute, the Federal Travel Act and wire fraud; three substantive violations of the Anti-Kickback Statute; three substantive violations of the Federal Travel Act; and three substantive violations of wire fraud. Greenspan was convicted following a 11-day trial before U.S. District Judge William H. Walls in Newark federal court. The jury deliberated just over four hours before returning the guilty verdict.

“We rightfully expect doctors to make their medical decisions based solely on what’s in the best interest of a patient,” U.S. Attorney Fishman said. “Whether they are dealing with a routine procedure or grappling with a potentially serious condition, patients should never have to worry that a doctor has violated that trust for personal greed. As we showed at trial – and the jury agreed – Greenspan abused his position and broke a wide range of federal laws when he accepted cash bribes and other illicit services in return for blood test referrals to BLS.”

“Patients have every right to insist that their physician is making medical referrals based on what is best for the patient—not what’s best for the doctor’s bank account,” said Special Agent in Charge Timothy Gallagher of the Newark FBI Field Office. “Bernard Greenspan decided to accept bribes in exchange for referrals and deprived patients of their right to honest services. These types of kickback arrangements cripple the healthcare industry and severely impact patient care. The FBI remains committed to investing its resources to combat these types of schemes.”

According to the indictment and testimony at trial, between March 2006 and April 2013, Greenspan received bribes totaling approximately $200,000 from BLS employees and associates. Greenspan periodically solicited and received monthly bribe payments in the form of sham rental, service agreement, and consultant payments.

In addition, Greenspan solicited and received other bribes, including payment for holiday parties for Greenspan and his office staff and additional cash bribes for ordering specific blood tests. In addition, BLS hired – at Greenspan’s specific request –a patient of Greenspan’s with whom he was having a sexual relationship. Greenspan’s referrals generated approximately $3 million in lab business for BLS.

The investigation has thus far resulted in 43 convictions – 29 of them of doctors – in connection with the bribery scheme, which its organizers have admitted involved millions of dollars in bribes and resulted in more than $100 million in payments to BLS from Medicare and various private insurance companies. It is believed to be the largest number of medical professionals ever prosecuted in a bribery case.

“This verdict should serve as a warning to any health care provider that dares to put personal profit ahead of proper patient care,” said Scott J. Lampert, Special Agent in Charge, Office of Inspector General, U.S. Department of Health and Human Services. “HHS-OIG, along with our law enforcement partners, will continue to aggressively pursue those who seek to undermine the federally funded health care programs intended for our most vulnerable Americans.”

“Dr. Greenspan violated the Hippocratic Oath taken by medical professionals when he pledged to ‘come for the benefit of the sick, remaining free of all intentional injustice,” said Inspector in Charge James V. Buthorn of U.S. Postal Inspection Service, Newark Division. “The culture of kickbacks and bribery have no place in our healthcare system, and the U.S. Postal Inspection Service was proud to do our part, working with our law enforcement partners to ensure justice was served today. Congratulations on the successful outcome to the agents and prosecutors who untiringly worked on investigating this case and preparing for trial.”

The investigation has recovered more than $12 million through forfeiture. On June 28, 2016, BLS, which is no longer operational, pleaded guilty and was required to forfeit all of its assets.

The conspiracy, Anti-Kickback, and Federal Travel Act counts are each punishable by a maximum potential penalty of five years in prison. The wire fraud charges are punishable by a maximum potential penalty of 20 years in prison per count. Each count also carries a maximum $250,000 fine, or twice the gross gain or loss from the offense. Greenspan’s sentencing is scheduled for June 20, 2017.

U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Gallagher; inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge Buthorn; IRS–Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen; and the U.S. Department of Health and Human Services, Office of Inspector General, under the direction of Special Agent in Charge Lampert with the ongoing investigation.

The government was represented at trial by Assistant U.S. Attorneys Joseph N. Minish and Danielle Alfonzo Walsman of the U.S. Attorney’s Office Health Care and Government Fraud Unit in Newark.

U.S. Attorney Paul J. Fishman reorganized the health care fraud practice at the New Jersey U.S. Attorney’s Office shortly after taking office, including creating a stand-alone Health Care and Government Fraud Unit to handle both criminal and civil investigations and prosecutions of health care fraud offenses. Since 2010, the office has recovered more than $1.32 billion in health care fraud and government fraud settlements, judgments, fines, restitution and forfeiture under the False Claims Act, the Food, Drug and Cosmetic Act and other statutes.

Defense counsel: Damian Conforti Esq. and Eric Kanefsky Esq., Newark, NJ

A New Jersey man pleaded guilty today in the U.S. District Court for the District of New Jersey in Newark, to one count of theft of public money, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division.

 

According to information and documents presented to the court, from approximately December 2010 through April 2014, Derrick M. Madison, 39, of Jersey City, New Jersey, used the Internal Revenue Service’s (IRS) telephone payment system hundreds of times in an effort to make fake payments to a taxpayer account he controlled from bank accounts that were closed, frozen or had minimal balances. The goal was to induce the IRS to fully credit these fake payments and then for the IRS to “refund” Madison for his overpayments. On one occasion, the IRS issued Madison a $170,681 refund check, which he deposited into his bank account.

 

Sentencing is scheduled for June 12. Madison faces a statutory maximum sentence of 10 years in prison, a period of supervised release, restitution and monetary penalties.

 

Acting Deputy Assistant Attorney General Goldberg thanked special agents of IRS-Criminal Investigation, who conducted the investigation, and Trial Attorneys Eric Powers and Jeffrey Bender of the Tax Division, who are prosecuting the case.

 

Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.

NEWARK, N.J. – A California man was sentenced today to 76 months in prison for his role in a conspiracy to traffic approximately 12 kilograms of cocaine from California to New Jersey, U.S. Attorney Paul J. Fishman announced.

Jesus Raul Iribe, 38, of Riverside, California, previously pleaded guilty before U.S. District Court Judge Kevin McNulty to an information charging him with one count of conspiring to distribute more than 500 grams of cocaine.

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

On Feb. 8, 2013, law enforcement officers recorded and observed meetings between Iribe and other conspirators in which they allegedly planned to use a tractor-trailer to transport cocaine from California to New Jersey and other destinations along the East Coast. Eventually, law enforcement followed the tractor trailer to Bronx, New York, where they recovered a produce box containing 12 kilograms of cocaine. Iribe admitted that he conspired with others to traffic the cocaine from California to New Jersey.

In addition to the prison term, Judge McNulty sentenced Iribe to five years of supervised release. Under terms of the plea agreement, he must also forfeit $446,310 in cash, three handguns, and an AR-1 assault rifle that were recovered when he was arrested in March 2015.

U.S. Attorney Fishman credited special agents and task force officers of the Drug Enforcement Administration’s New Jersey Division, under the direction of Special Agent in Charge Carl J. Kotowski in Newark, the DEA Los Angeles Field Office, and the Fontana, California Police Department.

The government is represented by Assistant U.S. Attorney Jonathan M. Peck of the U.S. Attorney’s Office General Crimes Unit.

 

NEWARK, N.J. – A doctor practicing in Passaic County, New Jersey, today admitted taking bribes in connection with a long-running and elaborate test referral scheme operated by Biodiagnostic Laboratory Services LLC (BLS), of Parsippany, New Jersey, its president and numerous associates, U.S. Attorney Paul J. Fishman announced today.

Salvatore Conte, 52, of Totowa, New Jersey, pleaded guilty to Count One, Count Two, Count Five, and Count Eight of an indictment charging him with conspiracy to violate the Anti-Kickback Statute and the Federal Travel Act by accepting bribes, one substantive violation of the Anti-Kickback Statute, one substantive violation of the Federal Travel Act, and one substantive violation of wire fraud. Conte pleaded guilty today before U.S. District Judge Stanley R. Chesler in Newark federal court.

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

Conte admitted accepting bribes from BLS employees and associates in the form of sham rental, service, and consulting agreements. From February 2009 through April 2013, Conte received bribes totaling approximately $130,000 from BLS employees and associates. Conte’s referrals generated approximately $525,000 in lab business for BLS.

Conte was the fifth physician indicted in connection with the BLS bribery scheme. Ahmed El Soury and Thomas Savino were indicted on Dec. 13, 2016 and Dec. 20, 2016, respectively. Brett Ostrager – who was indicted Aug. 11, 2015 and pleaded guilty on Dec. 22, 2015 – was sentenced on June 8, 2016 to 37 months in prison. Bernard Greenspan was indicted on March 14, 2016 and his trial is ongoing before U.S. District Judge William H. Walls.

The investigation has thus far resulted in 42 guilty pleas – 28 of them from doctors – in connection with the bribery scheme, which its organizers have admitted involved millions of dollars in bribes and resulted in more than $100 million in payments to BLS from Medicare and various private insurance companies. It is believed to be the largest number of medical professionals ever prosecuted in a bribery case.

The investigation has to date recovered more than $12 million through forfeiture. On June 28, 2016, BLS, which is no longer operational, pleaded guilty and was required to forfeit all of its assets.

The conspiracy, Anti-Kickback, and Federal Travel Act counts to which Conte pleaded guilty are each punishable by a maximum potential penalty of five years in prison. The wire fraud charge is punishable by a maximum potential penalty of 20 years in prison. Each count also carries a maximum $250,000 fine, or twice the gross gain or loss from the offense. Conte’s sentencing is scheduled for June 6, 2017.

U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark; inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge James V. Buthorn; IRS–Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen; and the U.S. Department of Health and Human Services, Office of Inspector General, under the direction of Special Agent in Charge Scott J. Lampert with the ongoing investigation.

The government is represented by Assistant U.S. Attorneys Joseph N. Minish, Danielle Alfonzo Walsman, and Jacob T. Elberg, Chief of the U.S. Attorney’s Office Health Care and Government Fraud Unit in Newark, as well as Assistant U.S. Attorney Barbara Ward, Acting Chief of the office’s Asset Forfeiture and Money Laundering Unit.

U.S. Attorney Fishman reorganized the health care fraud practice at the New Jersey U.S. Attorney’s Office shortly after taking office, including creating a stand-alone Health Care and Government Fraud Unit to handle both criminal and civil investigations and prosecutions of health care fraud offenses. Since 2010, the office has recovered more than $1.32 billion in health care fraud and government fraud settlements, judgments, fines, restitution and forfeiture under the False Claims Act, the Food, Drug and Cosmetic Act and other statutes.

Defense counsel: Howard Brownstein Esq., Jersey City, New Jersey

NEWARK, N.J. – A Milford, Ohio, man today admitted using an Essex County, New Jersey, medical company’s credit card without the company’s permission or consent to fraudulently obtain more than $950,000, U.S. Attorney Paul J Fishman announced.

John Tekulve, 44, pleaded guilty before U.S. District Judge Katharine S. Hayden in Newark federal court to an information charging him with wire fraud.

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

From January 2011 through October 2012, Tekulve owned a medical supply company that sold products to an Essex County medical company. He obtained the company’s credit card information, which he used to fraudulently bill the company nearly $1 million for products and services that neither Tekulve nor his medical supply company provided. Tekulve then used the proceeds of the scheme for his own purposes, including the purchase of high-end automobiles and jewelry.

The count of wire fraud is punishable by 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 Fishman credited special agents with the U.S. Secret Service, under the direction of Special Agent in Charge Mark McKevitt in Newark, with the investigation leading to today’s guilty plea.

The government is represented by Assistant U.S. Attorney Veronica Allende of the U.S. Attorney’s Office in Trenton.

Defense counsel: Peter Carter Esq., Newark

NEWARK, N.J. – A Middlesex County, New Jersey, man today admitted distributing and possessing images of child sexual abuse, U.S. Attorney Paul J. Fishman announced.

 

John Fricovsky, 57, of Edison, New Jersey, pleaded guilty before U.S. District Judge John Michael Vazquez in Newark federal court to an information charging him with one count of distribution of child pornography and one count of possession of child pornography.

 

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

 

Fricovsky admitted that in February 2015 he sent an email attaching an image of child sexual abuse involving a child under the age of 12. He also admitted to, in December 2015, possessing computer devices containing at least 10, but fewer than 150, images of child sexual abuse.

 

The possession of child pornography charge to which Fricovsky pleaded guilty carries a maximum potential penalty of 20 years in prison and a $250,000 fine. Fricovsky will be required to register as a sex offender. Sentencing is currently scheduled for June 7, 2017.

 

U.S. Attorney Fishman credited Special Agents with Homeland Security Investigations, under the direction of Special Agent in Charge Terence S. Opiola, with the investigation leading to today’s guilty plea.

 

The government is represented by Assistant U.S. Attorney Danielle Alfonzo Walsman of the U.S. Attorney’s Office Criminal Division in Newark.

NEWARK, N.J. – A former pharmaceutical company employee today admitted accepting thousands of dollars in exchange for filling medically unnecessary prescriptions for compounded medications for herself and her husband, causing losses of $956,885, U.S. Attorney Paul J. Fishman announced.

Julie Andresen, 39, of Haddonfield, New Jersey, pleaded guilty before U.S. District Judge John Michael Vazquez in Newark federal court to an information charging her with conspiracy to commit health care fraud.

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

Andresen, a former employee of a New Jersey pharmaceutical company, admitted that from September 2014 through September 2015, she received payments from a marketing business – identified in the information as “Company A” – for filling and obtaining medically unnecessary prescription compounded medications for herself and her husband through the pharmaceutical company’s prescription drug benefit plan.

As part of the scheme, Andresen approached a doctor – who was a close friend – at social gatherings that they attended. She would give the doctor pre-printed forms listing compounded medications and ask the doctor to authorize the medications. The doctor did so, as well as authorizing multiple refills. Andresen faxed prescriptions to compounding pharmacies located outside of New Jersey designated by Company A. The compounding pharmacies would fill and bill Andresen’s prescription drug benefit plan. The pharmaceutical company’s prescription drug benefit plan reimbursed the compounding pharmacies $13,572 to $43,689 for each compounded medication Andresen and her husband received.

The compounding pharmacies would pay Company A a percentage of the reimbursement amount, and Company A would pay Andresen a percentage of the amount Company A received from the compounding pharmacies. Andresen received a total of $161,378 from Company A for her role in the conspiracy. The pharmaceutical company lost $956,885 from this scheme.

The conspiracy to commit health care fraud count to which Andresen pleaded guilty carries a maximum penalty of 10 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. Sentencing is scheduled for June 7, 2017.

On June 29, 2016, Stephanie Naar, 27, of St. Louis, Missouri, who had been an employee of the same pharmaceutical company as Andresen, pleaded guilty before Judge Vazquez and admitted accepting thousands of dollars in exchange for obtaining and filling her own medically unnecessary prescriptions for compounded medications.

On July 19, 2016, Peter Pappas, 44, of Drexel Hill, Pennsylvania, another former employee of the same New Jersey pharmaceutical company as Andresen, also pleaded guilty before Judge Vazquez and admitted to accepting thousands of dollars in exchange for obtaining and filling his own medically unnecessary prescriptions for compounded medications. Pappas also admitted to recruiting others into this scheme.

Naar and Pappas both await sentencing.

U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark; and U.S. Department of Defense, Office of the Inspector General, Defense Criminal Investigative Service, under the direction of Special Agent in Charge Craig Rupert, with the ongoing investigation leading to today’s guilty plea.

The government is represented by Assistant U.S. Attorney Erica Liu of the United States Attorney’s Office, Health Care and Government Fraud Unit in Newark.

U.S. Attorney Paul J. Fishman reorganized the health care fraud practice at the New Jersey U.S. Attorney’s Office shortly after taking office, including creating a stand-alone Health Care and Government Fraud Unit to handle both criminal and civil investigations and prosecutions of health care fraud offenses. Since 2010, the office has recovered more than $1.32 billion in health care fraud and government fraud settlements, judgments, fines, restitution and forfeiture under the False Claims Act, the Food, Drug and Cosmetic Act and other statutes.

Defense counsel: Judson Aaron Esq., Philadelphia

NEWARK, N.J. – A Stamford, Connecticut, man today admitted paying bribes in order to secure a contract between his metallurgical technology company and a medical device company, U.S. Attorney Paul J. Fishman announced.

Eugene Ostrovsky, 56, pleaded guilty before U.S. District Judge Madeline Cox Arleo in Newark federal court to an information charging him with violating the Federal Travel Act.

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

Ostrovsky was a principal at a metallurgic technology company in New York. Ostrovsky admitted that he and others sought a multimillion-dollar supply contract with a medical device company in New Jersey. From 2012 through 2013, Ostrovsky and others paid approximately $70,000 in illicit bribes to an employee of the medical device company – Daniel Lawrynowicz, 47, of Monroe, New York – in return for Lawrynowicz’s assistance in securing the contract.

The count of violating the Federal Travel Act carries a maximum potential penalty of five years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. Ostrovsky must also forfeit $1.1 million as part of today’s guilty plea. Sentencing is scheduled for June 29, 2017.

On March 23, 2016, Lawrynowicz was charged by complaint with accepting the bribe payments. The charge and allegations against him are merely accusations, and he is presumed innocent unless and until proven guilty.

U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, with the investigation.

The government is represented by Assistant U.S. Attorney Danielle M. Corcione of the U.S. Attorney’s Office Health Care and Government Fraud Unit in Newark and Assistant U.S. Attorney Jafer Aftab of the Office’s Asset Forfeiture and Money Laundering Unit.

Defense counsel: Paula M. Junghans Esq.

CAMDEN, N.J. – A Deptford, New Jersey, man was sentenced today to 37 months in prison for robbing five New Jersey banks and one Pennsylvania bank between June 2015 and September 2015, U.S. Attorney Paul J. Fishman announced.

Michael A. Fanelli, a/k/a “Michael Carducci,” 37, previously pleaded guilty before U.S. District Judge Reneé Marie Bumb to an information charging him with six counts of bank robbery. Judge Bumb imposed the sentence today in Camden federal court.

According to documents filed in this case and statements made in court, Fanelli robbed the following banks on the dates set forth below:

Bank

Location

Date

Cornerstone Bank

West Deptford, New Jersey

June 2, 2015

Fulton Bank

Mullica Hill, New Jersey

June 5, 2015

Malvern Federal Savings Bank

Concordville, Pennsylvania

July 22, 2015

Susquehanna Bank

Mullica Hill, New Jersey

July 28, 2015

Susquehanna Bank

Mullica Hill, New Jersey

Aug. 21, 2015

National Penn Bank

Florence, New Jersey

Sept. 24, 2015

 

Fanelli typically robbed each bank by approaching a teller, displaying what appeared to be a firearm, and demanding money.

Fanelli robbed the same Susquehanna Bank on July 28, 2015 and August 21, 2015. Immediately following his robbery of National Penn Bank on Sept. 24, 2015, Fanelli was followed by law enforcement officers to his residence, where he was taken into custody.   

In addition to the prison term, Judge Bumb sentenced Fanelli to three years of supervised release.
 
U.S. Attorney Fishman credited special agents of the FBI’s South Jersey Resident Agency, under the direction of Special Agent in Charge Michael Harpster in Philadelphia, with the investigation. He also thanked the West Deptford, Harrison Township, and Florence Township police departments, as well as the Gloucester County Prosecutor’s Office and the Pennsylvania State Police for their assistance.

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

Defense counsel: Lisa Lewis Esq., Assistant Federal Public Defender

TRENTON, N.J. – A Hudson County, New Jersey, man, who served as the senior accountant of the City of Bayonne Department of Community Development (CBDCD) was sentenced today to 21 months in prison for accepting $65,000 in bribe payments in exchange for his assistance in awarding projects funded by U.S. Department of Housing and Urban Development grants, U.S. Attorney Paul J. Fishman announced.

Anselmo Crisonino, 56, of Bayonne, previously pleaded guilty before U.S. District Judge Peter G. Sheridan in Trenton federal court to a four-count information charging him with one count of accepting bribe payments totaling approximately $65,000 from Joseph Arrigo, the owner of a contracting company in Bayonne. Crisonino also pleaded guilty to one count of theft and conversion of federal funds ($422,360), one count of conducting an illegal gambling business, and one count of submitting a false tax return for tax year 2011.

 

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

 

The CBDCD was an agency that received funds from the U.S. Department of Housing and Urban Development (HUD) under a federal program that provided grants up to $20,000 to low income families to rehabilitate their homes and to repair conditions affecting health and safety, accessibility, energy efficiency or code compliance. The CBDCD also provided these HUD funds under the same federal program to nonprofit organizations. Crisonino was responsible for reviewing applications and awarding such funds to qualified applicants.

 

In September 2010, Crisonino solicited cash bribe payments from Arrigo in exchange for Crisonino’s assistance in awarding HUD grant funds from the CBDCD to Arrigo as the owner of Shadow Contracting LLC. From September 2010 to February 2013, Crisonino received cash payments from Arrigo totaling approximately $65,000 in exchange for Crisonino’s assistance in awarding HUD grant funds from the CBDCD to Arrigo that totaled approximately $426,000.

 

Between September 2010 and February 2013, Crisonino awarded HUD grant funds to several contractors and plumbers in Bayonne through the CBDCD, despite the fact that Crisonino knew that the submitted bids for the projects were fraudulent and were the result of collusion by the contractors and plumbers. Crisonino also approved change orders on projects where little to no legitimate work had been done by the contractors and plumbers at the job sites. The approved change orders allowed the CBDCD to disperse additional HUD grant funds to the projects that had already reached the maximum $20,000 grant allotment.

 

Crisonino also pleaded guilty to conducting an illegal gambling business in northern New Jersey. The illegal gambling business was administered and managed through a website that Crisonino and others accessed through usernames and passwords.

 

He admitted making and subscribing a U.S. Individual Tax Return, Form 1040, for tax year 2011 filed with the IRS, which he did not believe to be true and correct as to every material matter, including approximately $65,000 in unreported income through the bribe payments.

 

In addition to the prison term, Judge Sheridan sentenced Crisonino to three years of supervised release and ordered him to pay restitution of $439,000.

 

U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark: special agents of the U.S. Department of Housing and Urban Development, Office of the Inspector General, under the direction of Special Agent in Charge Christina Scaringi; and special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen in Newark, with the investigation leading to today’s sentencing plea.

 

The government is represented by Assistant U.S. Attorney Jacques S. Pierre of the Special Prosecutions Division.

 

Defense counsel: Daniel J. Welsh Esq., Jersey City, N.J.

CAMDEN, N.J.  – The owners of popular Ocean City, New Jersey, restaurant chain Manco & Manco Pizza were sentenced today for evading taxes, structuring cash payments to avoid reporting requirements and lying to IRS special agents, U.S. Attorney Paul J. Fishman announced.

Charles Bangle, 57, of Somers Point, New Jersey, was sentenced to 15 months in prison. He previously pleaded guilty before U.S. District Judge Robert B. Kugler in Camden federal court to Count 5 of an indictment charging him with evading taxes with respect to his 2010 personal tax returns and Count 30 charging him with structuring financial transactions in 2011 to avoid reporting requirements. His wife, Mary Bangle, 56, also of Somers Point, was sentenced to three years of probation and fined $3,000. She previously pleaded guilty to Count 7 of the same indictment, which charges her with knowingly making materially false statements to IRS special agents. Judge Kugler imposed the sentences today in Camden federal court.

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

Manco & Manco Pizza – formerly Mack & Manco – is an iconic restaurant located in the heart of Ocean City’s Boardwalk and maintains three stores on the Boardwalk and one store in Somers Point. Charles and Mary Bangle were employees of Mack & Manco Pizza until they purchased a controlling interest in 2011. Charles Bangle handled the day-to-day operations of the business and Mary Bangle was responsible for handling cash and payroll.

Charles Bangle admitted to substantially underreporting his income on his 2010 U.S. individual income tax return, specifically, failing to report additional taxable income that he deposited in cash into his bank account during that year. According to the indictment, by only reporting $127,955 in 2010 and omitting an additional $263,113 in taxable income, Charles Bangle avoided $91,577 in taxes. Charles Bangle also admitted to making cash deposits into his TD Bank account in February of 2011 in increments of less than $10,000 in order to prevent TD Bank from filing a Currency Transaction Report with the U.S. Department of Treasury.

Mary Bangle admitted that she was interviewed by IRS special agents on May 30, 2012, at which time she was asked questions about her personal bank account. Mary Bangle falsely stated that when cash receipts came into the business she only retained enough to pay that week’s payroll and some bills, when in fact she retained cash receipts for her personal use. Mary Bangle also lied to agents about the amount of cash deposited into her personal banking account, which was substantially more that the net pay listed on her W-2 forms issued by Manco and Manco Pizza.

In addition to the prison term, Judge Kugler sentenced Charles Bangle to three years of supervised release, ordered him to pay restitution of $248,560 and fined him $5,000. He allowed Bangle until Sept. 10, 2017, to report to the federal Bureau of Prisons to begin serving his sentence. 
 
U.S. Attorney Fishman credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen, with the investigation leading to today’s sentencings.

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

Defense counsel: Laurence S. Shtasel Esq., Philadelphia

TRENTON, N.J. – A Yardville, New Jersey, man today admitted using his e-mail account to distribute images of child sexual abuse, U.S. Attorney Paul J. Fishman announced.

Christopher Walsh, 31, pleaded guilty before U.S. District Judge Mary L. Cooper in Trenton federal court to an information charging him with one count of receiving and distributing child pornography.

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

From June 15, 2014 through Jan. 10, 2016, Walsh’s email account either sent or received a total of 1,590 files that contained content constituting child pornography. Walsh, who was a school bus driver, admitted today that on Aug. 2, 2015, he knowingly emailed a video depicting child sexual abuse to another individual.

Walsh faces a maximum potential penalty of 20 years in prison, a minimum penalty of five years in prison, a $250,000 fine, and up to a lifetime of supervised release.

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

The government is represented by Assistant U.S. Attorney Molly S. Lorber of the U.S. Attorney’s Office Criminal Division in Trenton.

Defense counsel:  Assistant Federal Public Defender Lisa Van Hoeck Esq., Trenton, New Jersey.

TRENTON, N.J. – An Ocean County, New Jersey, man today admitted owning and operating an unlicensed money transmitting business, U.S. Attorney Paul J. Fishman announced.

Yisroel Malamud, 53, of Lakewood, New Jersey, pleaded guilty before U.S. District Judge Anne E. Thompson in Trenton federal court to an information charging him with running an unlicensed money transmitting business.

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

Between January 2010 and May 2013, Malamud maintained a retail storefront in Lakewood under the name “Beepers Plus.” Malamud received money from members of the public, deposited the funds into bank accounts that he maintained in the name of different entities, and then transmitted the money from those bank accounts to third-parties within the United States in accordance with the customers’ instructions, charging the customers a fee for this service.

New Jersey law provides that the operation of an unlicensed money transmission business is punishable as a felony. Federal law requires anyone conducting such a business to register the business with the Secretary of the Treasury. Malamud did not possess and failed to obtain a money transmitting license, nor did he register with the Secretary of the Treasury.

The charge to which Malamud pleaded guilty carries a maximum potential penalty of five years in prison and a $250,000 fine. Sentencing is scheduled for June 1, 2017.

U.S. Attorney Fishman credited special agents of the FBI, Red Bank Resident Agency, under the direction of Special Agent in Charge Timothy Gallagher, with the investigation leading to today’s guilty plea.

The government is represented by Deputy Chief, Criminal Division Eric W. Moran of the U.S. Attorney’s Office in Newark.

Defense Counsel: Peter W. Till Esq., Springfield, New Jersey, and Stacy Ann Biancamano Esq., Chatham, New Jersey