District of New Jersey

NEWARK, N.J. – A Morris County man admitted to making interstate death threats against a political commentator, U.S. Attorney Alina Habba announced.

Haim Braverman, 47, of Morris Plains, New Jersey, entered his guilty plea before U.S. District Court Judge Evelyn Padin in Newark federal court to an Information charging him with transmitting threats in interstate commerce. Sentencing is scheduled for September 15, 2025.

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

On or about September 10, 2024, Braverman posted a video of himself on a social media platform in which he made various threats to a political commentator. Braverman admitted to having been angered by the commentator’s public statements about a prominent, now-deceased rabbi whom Braverman respected. In the video, Braverman threatened to use a bat he was holding against the commentator, stating: “[y]ou’ll get what’s coming to you . . . , I’ve never met someone . . . if I could f**king kill you right now, I would not even . . . , f**k it I’ll give you the steel bat. I wouldn’t even stop. I’d kill you. Dead. . . . I’m threatening a death sentence against [the commentator].” Braverman also included a written comment on his post in which he stated: “[The commentator] needs to be killed.” Braverman also transmitted an audio message to a group chat on a messaging application, referencing the commentator and stating, “[a]fter I heard what . . . [the commentator] said, I will go to prison, gladly find her and kill her . . . I will find a f**king weapon and f**king kill her. I am outraged.”

U.S. Attorney Habba credited special agents of the Federal Bureau of Investigation, under the direction of Acting Special Agent in Charge Terence G. Reilly, and the Morris County Sheriff’s Office, under the direction of Sheriff James Gannon, with the investigation leading to this plea.

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

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

NEWARK, N.J. – A Bergen County, New Jersey woman was sentenced today for tax evasion and for helping her clients file falsified tax returns that generated larger refunds, U.S. Attorney Alina Habba announced.

Joshlyn Raye, 49, of Elmwood Park, previously pleaded guilty before U.S. District Judge Esther Salas in Newark federal court to an Information charging her with one count of aiding and assisting in the preparation of a false and fraudulent tax return; one count of tax evasion; and one count of filing a false declaration under penalty of perjury concerning a quarterly tax return on behalf of her tax return business.

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

Between March 2010 and September 2023, Raye was the owner of JB Tax Services, a tax return preparation business located in Hackensack. She knowingly and willfully evaded her personal income taxes over three of those years; filed 177 false tax returns on behalf of her clients; and filed three false quarterly employment tax returns on behalf of her tax return preparation business. Raye used fabricated and inflated figures, including expenses and itemized deductions.

In addition to the 36-month prison term, Judge Salas sentenced Raye to 3 years of supervised release and ordered her to pay $1,109,214.10 in restitution.

U.S. Attorney Habba credited members of the IRS-Criminal Investigation, under the direction of Special Agent in Charge Jenifer Piovesan; and members of the New York State Department of Taxation and Finance, Office of Internal Affairs, under the direction of Director Brian Hickey, with the investigation leading to today’s sentencing.

The government is represented by Assistant U.S. Attorney Benjamin Levin, Chief of the OCDETF/Narcotics Unit in Newark.

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Defense counsel:  Richard J. Sapinski, Esq.

NEWARK, N.J. – A resident of Queens Village, New York admitted to distributing and possessing with intent to distribute a significant amount methamphetamine, fentanyl, and heroin, U.S. Attorney Alina Habba announced.

Donovan Elliot, 61, pleaded guilty to an Information charging him with possession with intent to distribute controlled substances before U.S. District Judge Claire C. Cecchi in Newark federal court.

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

In connection with an investigation into Elliot’s drug trafficking activities, law enforcement agents with U.S. Department of Homeland Security Investigations (HSI) observed Elliot conduct narcotics sales involving significant amounts of methamphetamine, fentanyl, and fentanyl-laced heroin. Law enforcement subsequently executed a search warrant at Elliot’s home and recovered a considerable quantity of methamphetamine, as well as a firearm and ammunition.  In total, Elliot’s offense involved over three kilograms of methamphetamine, nearly 500 grams of fentanyl-laced heroin, and over 260 grams of fentanyl.

The charge in the Information to which Elliot pleaded guilty carries a maximum penalty of 20 years’ imprisonment and a fine of up to $1,000,000. Sentencing is scheduled for September 16, 2025.

U.S. Attorney Habba credited special agents of the U.S. Department of Homeland Security Investigations (HSI) Newark, under the direction of Special Agent in Charge Ricky J. Patel.

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

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Defense counsel: David Holman, Esq.

NEWARK, N.J. – A Passaic County, New Jersey man admitted his role in embezzling approximately $3.2 million from a New Jersey couple, U.S. Attorney Alina Habba announced.

Charles Gallo, 34, of Hawthorne, New Jersey pleaded guilty before U.S. District Judge Julien X. Neals in Newark federal court to an Information charging him with wire fraud.

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

In 2018, Gallo began working as the part-time personal assistant for the victims.  Gallo’s duties included managing the victims’ monthly bills and assisting them with banking, email, and other computer/technology-related issues.  From March 2022 through March 2023, Gallo, abused this position of trust by engaging in a fraudulent scheme to misappropriate approximately $3,200,000 from the victims’ accounts.  Gallo accomplished this fraud by routinely using the victims’ ATM card to withdraw large amounts of money, opening a line of credit, and cashing checks made payable to himself drawn on the victims’ bank accounts.  He also used the victims’ credit cards to purchase for his personal use computer equipment, gaming systems, collectible items from online retailers, and other unauthorized transactions.

The wire fraud charge carries a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. Sentencing is scheduled for September 10, 2025.

U.S. Attorney Habba credited postal inspectors of the U.S. Postal Inspection Service in Newark, under the direction of Christopher A. Nielsen, Philadelphia Division, and special agents of the U.S. Attorney’s Office for the District of New Jersey, under the direction of Special Agent in Charge Thomas Mahoney, with the investigation leading to the guilty plea.  She also thanked the Ridgewood Police Department, under the direction of Chief Forest R. Lyons, and the Hawthorne Police Department under the direction of Chief James Knepper, for their assistance.

The government is represented by Assistant U.S. Attorney Shontae D. Gray of the Economic Crimes Unit in Newark.

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

NEWARK, N.J. – A North Bergen woman was charged with distribution of child pornography involving a prepubescent minor child, U.S. Attorney Alina Habba announced.

Natasha Rivas, 23, was charged by complaint and appeared before U.S. Magistrate Judge Jessica S. Allen in Newark federal court.

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

After an individual (the “Individual”) was arrested in January 2025 for possession of child pornography, law enforcement discovered that the Individual exchanged messages with Rivas wherein Rivas distributed images containing child sexual abuse material (“CSAM”) to the Individual and discussed sexually assaulting children for Rivas’s and the Individual’s mutual sexual gratification.  The images Rivas distributed involved a prepubescent minor child whom she was with at a hotel in Ridgefield Park, New Jersey in July 2024.

The charge in the complaint carries a mandatory minimum penalty of 5 years’ imprisonment and a maximum penalty of 20 years’ imprisonment as well as a fine of up to $250,000.

U.S. Attorney Habba credited special agents of the FBI’s Child Exploitation Operational Unit with the investigation leading to the charges.  She also thanked the FBI Newark’s Child Exploitation and Human Trafficking Task Force under the direction of Acting Special Agent in Charge Terence G. Reilly for their assistance.

This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section (CEOS) in the Justice Department’s Criminal Division, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit: https://www.justice.gov/psc.

The government is represented by Assistant U.S. Attorney Joseph Stern of the Opioid Abuse Prevention and Enforcement 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.

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Defense counsel: Timothy Donahue, Esq.

NEWARK, N.J. – A Union County, New Jersey man was charged with possessing images of child sexual abuse and for enticing a minor to engage in sexual acts and produce child pornography, U.S. Attorney Alina Habba announced today.

Jack Wilder, 26, of Somerville, New Jersey, was charged by complaint with one count of possession of child pornography and two counts of enticement of a minor.  He made his initial appearance today before U.S. Magistrate Judge Michael A. Hammer in Newark federal court and was detained.

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

In or around February 2024, Wilder, a history teacher at a school in Plainfield, New Jersey, communicated with a minor victim using a mobile payment application through which Wilder advised he would pay the minor victim to engage in sexual activity.  The minor victim also sent Wilder sexually explicit pictures.  Thereafter, on or about July 23, 2024, Wilder returned from an international trip aboard a flight that landed in New York.  Law enforcement subsequently lawfully searched Wilder’s cell phone and found a video depicting child sexual abuse material and sexually explicit conversations between Wilder and other individuals who identified themselves as minors.

“These charges are the most recent example of this office’s dedication to protecting children in our community.  We are tirelessly committed to working with our law enforcement partners to ensure that individuals who victimize and prey on the vulnerable are brought to justice.”

- U.S. Attorney Alina Habba

“Our children are the most innocent members of society and they should never be victimized by anyone, particularly​ by those in positions of trust such as teachers,” said Homeland Security Investigations (HSI) Newark Special Agent in Charge Ricky J. Patel. “In partnership with the United States Attorney’s Office for the District of New Jersey, every child has our unwavering commitment ​to bring to justice those that would heinously abuse them for their own profit and perverse self-gratification. No child should have to face a lifetime of trauma caused by a predator. We will continue to make combatting child sexual exploitation a priority, and will always strive to put an end to ​these disturbing acts from happening around the world.”

The charge of possession of child pornography carries a maximum potential penalty of 10 years in prison and a $250,000 fine.  The charges of enticement of a minor each carry a statutory mandatory minimum penalty of 10 years in prison, a maximum potential penalty of life imprisonment, and a $250,000 fine.

U.S. Attorney Habba credited the work of the Department of Homeland Security, Homeland Security Investigations Newark, under the direction of Special Agent in Charge Ricky J. Patel, with the investigation leading to the charges.

This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section (CEOS) in the Justice Department’s Criminal Division, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit: https://www.justice.gov/psc.

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

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

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Defense counsel: Candace Hom, Esq.

NEWARK, N.J. – Two roofing company owners were indicted for their failure to file tax returns and pay tax on income, U.S. Attorney Alina Habba announced.

The Indictment charges Steve Mitchell, also known as “Sonny Mitchell,” of Edison, New Jersey, and Samuel Mitchell of Bohemia, New York with four counts each of tax evasion.

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

Steve Mitchell, Samuel Mitchell, and others operated roofing businesses under several different names.  Despite earning approximately $881,730.26 and $1,397,960.21, respectively, in income from roofing customers from 2018 through 2021, Steve Mitchell and Samuel Mitchell failed to file tax returns with the IRS and pay tax on their income.  Instead, Steve Mitchell and Samuel Mitchell took affirmative steps to conceal their income from the IRS, including by providing false social security numbers to check cashing businesses that they used to convert customers’ checks to cash, which prevented the check cashing businesses from reporting the cashed checks to the IRS as required by law.

In addition to the income from the roofing customers, Steve Mitchell also received income from an elderly individual for what the elderly individual thought was an investment in a COVID mask-making business.  In 2020 and 2021, Steve Mitchell converted over $4.2 million in checks from the elderly individual into cash.

The tax evasion counts each carry a maximum potentially penalty of five years’ imprisonment and a fine of up to $250,000.

U.S. Attorney Habba credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Jenifer L. Piovesan, with the investigation leading to the charges.

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

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

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Defense counsel:

Steve Mitchell:            Michael A. Baldassare, Esq.

Samuel Mitchell:        Robert Scrivo, Esq.

NEWARK, N.J. – A Passaic County man admitted to using an explosive to damage a Chase Bank Automated Teller Machine (“ATM”) in Prospect Park, New Jersey, U.S. Attorney Alina Habba announced.

Nicolas Torres, 42, of Passaic, New Jersey pleaded guilty before U.S. District Court Judge Julien X. Neals in Newark federal court to a one-count information charging him with using an explosive to damage real property used in interstate commerce.

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

In the early morning hours of July 5, 2022, Torres was captured on surveillance video approaching the Chase Bank ATM in Prospect Park, New Jersey and igniting an item in front of the ATM. Several seconds later, an explosion was seen at the ATM. Torres was seen fleeing the location with two individuals.

In addition to the surveillance video, cellular phone location data placed Torres in the area of the Chase Bank at the time of the explosion. The investigation also revealed that Torres had traveled to Pennsylvania the day before and purchased approximately $1,000 worth of fireworks.

The use of an explosive to damage real property used in interstate commerce charge carries a statutory minimum of 5 years in prison, a statutory maximum of 20 years in prison, and a fine of $250,000. Sentencing is scheduled for September 9, 2025.

U.S. Attorney Habba credited special agents of the Federal Bureau of Investigation, Newark Field Division, under the direction of Acting Special Agent in Charge Terence G. Reilly, and the Prospect Park Police Department, under the direction of Chief William Rausch, with the investigation leading to today’s plea.

The government is represented by Assistant U.S. Attorney Vera Varshavsky of the U.S. Attorney’s National Security Unit in Newark. 

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Defense counsel: Adalgiza A. Núñez, Office of the Public Defender

TRENTON, N.J. – An Elizabeth, New Jersey man was sentenced to 15 years in prison for committing a series of three armed robberies, U.S. Attorney Alina Habba announced.

Dayshawn Brimfield, of Elizabeth, New Jersey, previously pleaded guilty before United States District Judge Zahid N. Quraishi to a five-count Information, charging him with one count of bank robbery, two counts of Hobbs Act robbery, one count of using and carrying a firearm during and in relation to a crime of violence, and one count of interstate transportation of a stolen motor vehicle. Judge Quraishi imposed sentence in Trenton federal court.

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

On April 2, 2021, Brimfield robbed a bank in Hazlet, New Jersey. Brimfield entered the bank and handed a teller a note, which stated, among other things “This is a Robbery I have a Gun I will Kill Someone if you do not follow these instructions.” On April 17, 2021, Brimfield stole a motor vehicle in Elizabeth, New Jersey, which he used as the getaway car in his later robberies. On April 20, 2021, Brimfield robbed a convenience store in Aberdeen, New Jersey. Brimfield entered the store and displayed the handgun that he was carrying to the cashier before taking money from the store’s register and fleeing the scene. On April 20, 2021, Brimfield robbed another convenience store in South Plainfield, New Jersey. Brimfield entered the store and pointed a handgun at the cashier. Brimfield took the cashier’s wallet and cellular phone before emptying the store’s registers and fleeing the scene. Brimfield fled New Jersey in the stolen vehicle, but was ultimately apprehended by law enforcement in Lancaster County, Nebraska. Brimfield led officers on a brief, high-speed chase before crashing into a fence on the side of the highway.

In addition to the prison term, Judge Quraishi sentenced Brimfield to 5 years of supervised release and ordered restitution to the victims of Brimfield’s offenses.

U.S. Attorney Habba credited special agents of the FBI, Newark Division, Red Bank Resident Agency, under the direction of Special Agent in Charge Terence G. Reilly; detectives of the Monmouth County Prosecutor’s Office, under the direction of Prosecutor Raymond S. Santiago; as well as officers of the Hazlet Police Department, under the direction of Chief Robert Mulligan; the South Plainfield Police Department, under the direction of Chief Peter J. Papa; and the Nebraska State Patrol with the investigations leading to this sentencing.

The government is represented by Assistant U.S. Attorney Alexander E. Ramey of the U.S. Attorney’s Office’s Criminal Division in Trenton.

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Defense Counsel:        Teri S. Lodge, Esq. 

NEWARK, N.J. – A Paterson, New Jersey man admitted to illegally possessing two firearms and ammunition, possessing fentanyl and cocaine with intent to distribute, and distributing cocaine, announced U.S. Attorney Alina Habba.

Lamont Baker, 33, of Paterson, New Jersey, pleaded guilty before U.S. District Judge Claire C. Cecchi in Newark federal court to four counts of a Superseding Indictment charging him with one count of unlawful possession of firearms and ammunition by a convicted felon, one count of possession of fentanyl and cocaine with intent to distribute, and two counts of distribution of cocaine.

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

On September 14, 2022 and September 20, 2022, law enforcement conducted controlled purchases of cocaine from Baker.  On those dates, Baker traveled from his residence to a predetermined location to sell cocaine.

On September 29, 2022, law enforcement searched Baker’s residence and car, and recovered two firearms (including one with a defaced serial number), ammunition (including hollow point rounds), fentanyl, and cocaine, along with several hundred dollars in U.S. currency and materials used to package, store, and transport drugs for distribution.  In 2008, Baker was convicted for his participation in a robbery and in 2021, he was convicted of aggravated assault with a firearm.

The count of unlawful possession of firearms and ammunition by a convicted felon carries a maximum penalty of 15 years in prison and a $250,000 fine.  Each count of possession of fentanyl and cocaine with intent to distribute, and distribution of cocaine, carries a maximum penalty of 20 years in prison and a $1,000,000 fine.  Sentencing is scheduled for September 17, 2025.

U.S. Attorney Habba credited special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), under the direction of Special Agent in Charge L.C. Cheeks Jr. for the investigation leading to the guilty plea.

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. For more information about Project Safe Neighborhoods, please visit Justice.gov/PSN.

The government is represented by Assistant U.S. Attorney Matthew Specht of the Special Prosecutions Division.

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Defense counsel: Christopher Adams, Newark, N.J.

TRENTON, N.J. – An Ocean County, New Jersey man was sentenced to 180 months in prison for receiving and distributing child pornography, U.S. Attorney Alina Habba announced.

Christopher Budelman, 37, Brick, New Jersey, previously pleaded guilty before U.S. District Judge Zahid N. Quraishi to an information charging him with two counts of receipt of child pornography and one count of distribution of child pornography. Judge Quraishi imposed the sentence in Trenton federal court.

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

In or around June 2022, while communicating via an online video chat site, Budelman enticed two minors to engage in sexually explicit conduct while he sexually pleasured himself. Budelman recorded and saved those video chats on his computer. Additionally, from in or around September 2021 to in or around June 2022, Budelman used two Kik Messenger accounts to send images and videos containing child pornography, including images and videos depicting prepubescent minors engaged in sexually explicit conduct, to others.

In addition to the prison term, Judge Quraishi sentenced Budelman to 10 years of supervised release.

U.S. Attorney Habba credited special agents of the Department of Homeland Security, Homeland Security Investigations, Atlantic City, New Jersey, under the direction of Special-Agent-in-Charge Ricky J. Patel in Newark; the Ocean County Prosecutor’s Office High Tech Crime Unit, under the direction of Prosecutor Bradley D. Billhimer; New Jersey State Police, under the direction of Superintendent Col. Patrick J. Callahan; and Brick Township Police Department, under the direction of Chief David Forrester, with the investigation leading to this sentencing.

The government is represented by Assistant U.S. Attorney Ashley Super Pitts of the Criminal Division in Trenton.

This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section (CEOS) in the Justice Department’s Criminal Division, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit: https://www.justice.gov/psc.

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Defense counsel: John Bruno, Jr., Esq.

TRENTON, N.J. – A Louisiana man was sentenced today to 97 months in prison for traveling to New Jersey for the purpose of engaging in sexual conduct with a minor, U.S. Attorney Alina Habba announced.

Spencer W. Caudle, 36, of Prairieville, Louisiana, previously pleaded guilty before U.S. District Judge Michael A. Shipp in Trenton federal court to an information charging him with travel with intent to engage in illicit sexual conduct.

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

In or around April 2023, Caudle began interacting on online social media applications with the then-14-year-old victim. Caudle’s communications with the victim were sexual in nature despite the victim informing Caudle of the victim’s minor status.  Caudle even expressed nervousness about being on the show “To Catch a Predator,” but continued informing the victim of his desire to have sex with the victim.  On May 26, 2023, Caudle drove from Louisiana to meet and have sex with the victim in Toms River, New Jersey the following day. On May 27, 2023, Caudle, in fact, committed sexual acts on the victim.  Later that night, Caudle left New Jersey to drive back to Louisiana.

Local law enforcement became aware of Caudle’s prohibited sexual activity with the victim and began an investigation.  In June 2023, an undercover law enforcement officer assumed the victim’s online and cellular presence and communicated with Caudle.  During these conversations, Caudle confirmed his prior sexual acts with the victim and expressed a desire for further sexual activity.  While communicating with the undercover officer, Caudle made plans to return to New Jersey to commit additional sexual acts on the victim.  On June 16, 2023, Caudle flew from Louisiana to New Jersey, and law enforcement arrested him upon his arrival at the Newark Liberty International Airport.

U.S. Attorney Habba credited special agents of the U.S. Department of Homeland Security, Homeland Security Investigations Newark, under the direction of Special Agent in Charge Ricky J. Patel; the Ocean County Prosecutor’s Office, under the direction of Prosecutor Bradley D. Billhimer; and the Toms River Police Department, under the direction of Police Chief Peter Sundack, with the investigation.

This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys' Offices and CEOS, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit Justice.gov/PSC.

The government is represented by Assistant U.S. Attorney Richard G. Shephard of the U.S. Attorney’s Office’s Criminal Division in Trenton. 

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TRENTON, N.J. – A Hunterdon County man was charged with possessing videos and images of child sexual abuse, U.S. Attorney Alina Habba announced.

David Tuytjens, 69, of Tewksbury Township, New Jersey, was charged in a one-count complaint with possession of child pornography. He had an initial appearance before U.S. Magistrate Judge Rukhsanah L. Singh in Trenton federal court and was detained.

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

In December 2024, officers from the New Jersey State Parole Board visited Tuytjens’ residence and discovered various electronic devices, including a 64 gigabyte MicroSD storage card inside of a laptop. Officers conducted their visit because Tuytjens is prohibited from possessing, among other things, Internet-capable devices as an individual under Community Supervision for Life due to a prior State conviction. An examination of the storage card contents revealed at least 800 images and 30 video files containing child sexual abuse materials (“CSAM”). An ongoing review of the CSAM has revealed images depicting prepubescent minors engaged in sexually explicit conduct, images portraying sadistic or masochistic conduct, and sexual abuse or exploitation of an infant or toddler as further outlined in the complaint.

Due to Tuytjens’ prior convictions for aggravated sexual assault and possession of child pornography, the charge of possession of child pornography carries a statutory maximum penalty of 20 years in prison and a mandatory minimum penalty of 10 years in prison. The charge also carries with it a maximum $250,000 fine.

U.S. Attorney Habba credited special agents of the Child Exploitation and Human Trafficking Task Force in the Newark Office of the Federal Bureau of Investigation, under the direction of Acting Special Agent in Charge Terence G. Reilly, the New Jersey State Parole Board, under the direction of Chairman Samuel J. Plumeri, Jr., and the Hunterdon County Prosecutor’s Office, under the direction of Prosecutor Renée M. Robeson, with the investigation leading to the charge.

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

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

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Defense counsel: Benjamin West, Esq., Assistant Federal Public Defender

CAMDEN, N.J. – A former resident of Salem County admitted to filing false tax returns and causing a tax loss of approximately $590,000, U.S. Attorney Alina Habba announced.

Michael DiPaolo, Jr., 47, of Newtown Square, Pennsylvania, pleaded guilty before U.S. District Judge Edward S. Kiel to an information charging him with one count of filing a false income tax return.

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

From 2018 through 2022, DiPaolo was the manager of a restaurant in Salem County, New Jersey, and received income from the restaurant.  DiPaolo received and failed to report more than $1,700,000 in income from 2018 through 2022.  By failing to report the income, DiPaolo avoided approximately $590,000 in federal income taxes.

The count of filing a false tax return is punishable by a maximum of 3 years in prison and a maximum fine of $250,000, or twice the gross loss or gain, whichever is greatest.

Sentencing is scheduled for September 3, 2025.

U.S. Attorney Habba credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Jenifer L. Piovesan, with the investigation leading to this guilty plea.

The government is represented by Assistant U.S. Attorney Daniel A. Friedman of the U.S. Attorney’s Office’s Criminal Division.

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Defense counsel:

Michael S. Adelman, Esq., Cherry Hill, New Jersey

Camden, N.J. – Summit BHC New Jersey, LLC, d/b/a Seabrook, a drug and alcohol rehabilitation facility in Bridgeton, New Jersey, has agreed to pay $19.75 million to resolve allegations that it violated the federal False Claims Act, U.S. Attorney Alina Habba announced today. As alleged, Seabrook submitted claims to the Community Care Program of Veterans Health Administration (“VHA”) and New Jersey’s Medicaid program for short-term residential treatment and partial hospitalization care for which it was not properly licensed or contracted and misled State inspectors.

The settlement resolves allegations relating to the care provided and billed by Seabrook, principally to the VHA Community Care Program.  The United States alleged that, during the period from January 1, 2022 through December 31, 2024, Seabrook provided services for which it had no license; sought to conceal those improperly performed services from state inspectors; failed to employ a sufficient number of properly-credentialed caregivers; failed to employ a sufficient number of caregivers credentialed in treating patients with both mental health and addiction issues; provided the same care to veterans it provided to other patients, while claiming to be providing specialized care; and kept false, inconsistent, and inadequate records of the care provided to veterans and other patients.

“Today’s resolution demonstrates once again this Office’s commitment to ensure that America’s veterans receive the care they deserve and for which the government has paid.  Veterans and Medicaid recipients must receive care from fully qualified, licensed providers in facilities that meet state law in all respects.  We stand ready to enforce these standards and protect the Americans who need this care.” 

- U.S. Attorney Alina Habba

“This civil settlement reinforces the VA OIG’s commitment to safeguarding the integrity of VA’s healthcare programs and preserving taxpayer funds,” said Special Agent in Charge Christopher Algieri with the Department of Veterans Affairs Office of Inspector General’s Northeast Field Office. “Providers who participate in the VA Community Care Program must be licensed and follow state and federal law when billing the VA. The VA OIG will continue to work with the U.S. Attorney’s Office and other law enforcement partners to thoroughly investigate providers who fail to meet these standards in providing healthcare to our nation’s veterans.”

“Our federal health care systems serve vulnerable populations, and by not providing the level of care they deserve that purpose is undermined,” stated Special Agent in Charge Naomi Gruchacz with the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG).  “HHS-OIG, together with our law enforcement partners, will continue to vigorously pursue those who exploit government health programs.”

The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by a former Seabrook employee. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery.  In this matter, the relator is receiving at least approximately $3,555,137.28 as her share of the recovery in this case.

Seabrook cooperated in the investigation and resolution of this matter, including by independently investigating the matter, implementing remedial measures, and disciplining responsible individuals.

The resolution was the result of efforts by the United States Attorney’s Office for the District of New Jersey and the Offices of Inspectors General for the Department of Veterans Affairs and Department of Health and Human Services.

The investigation and resolution of this matter illustrates the government’s emphasis on combating health care fraud.  Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement, can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).

The matter was handled by Assistant U.S. Attorney Paul W. Kaufman of the Health Care Fraud Unit in the U.S. Attorney’s Office for the District of New Jersey.

The case is captioned United States ex rel. Coulter and the State of New Jersey v. Seabrook House, Inc., et al., Civil Action No. 23-cv-00451 (D.N.J.).

The claims resolved by the settlement are allegations only.  There has been no determination of liability.

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Counsel for Seabrook: Richard Westling, Epstein Becker Green, P.C. and Matthew Curley, Bass, Berry, & Sims, PLC

Counsel for Relator Jennifer Coulter: Ross Begelman and Marc Orlow, Javerbaum Wurgaft Hicks Kahn Wikstrom & Sinins, P.C.

NEWARK, N.J. – U.S. Attorney for the District of New Jersey Alina Habba announced today the creation and launch of the District of New Jersey’s Fentanyl Precursor Interception (FPI) Strike Force.  Capitalizing on the Office’s preeminence in opioid enforcement, the Strike Force will focus on investigating, prosecuting, and dismantling overseas chemical manufacturers, including those in China, that support Mexican Cartels by flooding our nation’s borders with the precursors used to manufacture deadly fentanyl.

“I am establishing this Strike Force to cut off the supply of chemical precursors that drug cartels rely on to manufacture deadly fentanyl.  The District of New Jersey will harness its significant experience in pursing those who contribute to the opioid crisis, to break apart every link in the fentanyl supply chain.  The mission of the Strike Force is to stop this deadly poison from entering our borders, and to bring to justice the overseas chemical manufacturers that fuel the cartels.”

- U.S. Attorney Alina Habba

“As we know, fentanyl remains the deadliest drug threat facing the United States, which claimed the lives of over 106,000 Americans in 2023,” stated Special Agent in charge Cheryl Ortiz of the Drug Enforcement Administration’s New Jersey Field Division. “We welcome United States Attorney Habba’s creation of the District of New Jersey’s Fentanyl Precursor Interception (FPI) Strike Force and look forward to working with her and our law enforcement partners in battling this opioid epidemic. Any chance at stopping the flow of these precursor chemicals from reaching our communities, helps save lives.”  

The manufacture of fentanyl begins with raw chemicals, known as precursors.  Many fentanyl precursors are manufactured and distributed by China-based chemical companies.  These manufacturers ship fentanyl precursors around the world, including to the United States.  The precursors are then trafficked to Mexico, where drug cartels combine the chemicals and then distribute fentanyl to individual users, smuggling it across our border and throughout the United States. 

The flow of fentanyl into the United States has created a public health crisis, caused devastation to American families, and brought violence to our communities.  This Office, alongside the U.S. Drug Enforcement Administration, under the direction of Special Agent in Charge Cheryl Ortiz in Newark, New Jersey, will work tirelessly to stem the tide of fentanyl that cartels send into our country and to keep our communities safe.

Newark, N.J. - U.S. Attorney for the District of New Jersey Alina Habba today announced the creation of a federal task force to preserve and protect the integrity of elections conducted in the District of New Jersey.

The task force, which has been named the Election Integrity Task Force, will consist of a team of federal prosecutors from the U.S. Attorney’s Office, who will work in conjunction with law enforcement officers from the Federal Bureau of Investigation (FBI), the Department of Homeland Security (DHS), and other federal agencies to implement the directives set forth in the President’s March 25, 2025 Executive Order concerning elections. The Election Integrity Task Force’s objectives will include:

• Facilitating information sharing between federal, State, and local officials to enhance the ability of election officials to efficiently and effectively remove individuals who are not eligible to vote from State voter lists.
• Prioritizing the investigation and prosecution of election crimes, including but not limited to, federal statutes that prohibit voter registration fraud, casting of fraudulent ballots, voting by non-citizens, individuals voting multiple times in same election, and foreign interference caused by foreign nationals contributing or donating funds to United States elections.
• Taking appropriate steps to ensure compliance with the voter list maintenance requirements of the National Voter Registration Act and the Help America Vote Act.

U.S. Attorney Habba emphasized that we and our federal partners are committed to ensuring the integrity of elections here in the District of New Jersey and making sure that the administration of all elections is in compliance with federal law. The Election Integrity Task Force will take all appropriate steps to achieve that integrity and will vigorously pursue anyone who violates or attempts to violate federal laws designed to safeguard elections.   

Complaints about elections related crimes and the integrity of elections can be made to the U.S. Attorney’s Office’s Hotline at (888) 636-6596, or by submitting an online complaint at https://tips.fbi.gov/home.

NEWARK, N.J. – Two California men were sentenced to prison terms for conspiring to launder money that originated from internet-related fraud that targeted a law firm based in New Jersey and from fraudulently obtained loans from the U.S. Small Business Association, U.S. Attorney Alina Habba announced.

Eric Bullard, 62, of Los Angeles, California was sentenced to 37 months in prison, and Anthony Hannah, 61, of Moreno Valley, California, was sentenced to 33 months in prison.  Bullard and Hannah each previously pleaded guilty before U.S. District Judge Madeline Cox Arleo to informations charging them with conspiracy to commit money laundering.

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

In June 2020, Victim-1 communicated via email with a law firm in New Jersey that was advising Victim-1, a resident of Bergen County, New Jersey, on a real estate transaction.  A business email compromise is a method of wire fraud often targeting businesses or individuals working on business transactions involving high-dollar wire transactions.  The fraud is carried out by compromising and/or “spoofing” legitimate email accounts through social engineering or computer intrusion techniques to cause employees of a target company, or other individuals involved in legitimate business transactions, to conduct unauthorized transfers of funds, most often to accounts controlled by the fraud perpetrators.

A co-conspirator conducted a business email compromise and sent an email to Victim-1 purporting to be on behalf of the law firm with fraudulent instructions to wire approximately $560,000 to a bank account controlled by Bullard.  Relying on the fraudulent instructions, Victim-1 wired approximately $560,000 into a bank account controlled by Bullard.  After receiving the funds, Bullard made several cash withdrawals and transferred money to other co-conspirators, including approximately $230,000 of the fraudulently obtained proceeds to an account controlled by Hannah.   

In addition to laundering proceeds from the business email compromise, Bullard and Hannah also obtained and laundered funds from the U.S. Small Business Administration’s (SBA) Economic Injury Disaster Loan (EIDL) program based on fraudulent loan applications. EIDL loans were intended to be for small businesses that were experiencing substantial financial disruption due to the COVID-19 pandemic.  In July 2020, Bullard received into a business bank account that he controlled approximately $143,100 from an SBA EDIL loan intended for a pharmacy company with a listed location in Colorado.  Hannah also received approximately $145,400 from the SBA for a loan intended for a pharmacy company with a listed location in Idaho.  Hannah then transferred approximately $51,395 to a bank account controlled by Bullard.

In addition to the prison terms, Judge Arleo sentenced Bullard and Hannah each to three years of supervised release and to pay $705,400 in restitution to the victims.  Judge Arleo ordered forfeiture of $611,395 for Bullard and $375,400 for Hannah, constituting proceeds derived from the conspiracy.

U.S. Attorney Habba credited special agents of the FBI Woodland Park Office, under the direction of Acting Special Agent in Charge Terence G. Reilly in Newark, with the investigation.

The government is represented by Assistant U.S. Attorney Farhana C. Melo of the Economic Crimes Unit in Newark.

The District of New Jersey COVID-19 Fraud Enforcement Strike Force is one of five strike forces established throughout the United States by the U.S. Department of Justice to investigate and prosecute COVID-19 fraud.  The strike forces focus on large-scale, multi-state pandemic relief fraud perpetrated by criminal organizations and transnational actors.  The strike forces are interagency law enforcement efforts, using prosecutor-led and data analyst-driven teams designed to identify and bring to justice those who stole pandemic relief funds.

Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

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Defense counsel: Bullard: Brandon Minde, Esq., Cranford, New Jersey
Hannah: Areeb Salim, Esq. Assistant Federal Public Defender, Newark

NEWARK, N.J. – A former resident of Monmouth County was sentenced to prison for his role in a scheme to fraudulently obtain Payroll Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) funds, U.S. Attorney Alina Habba announced.

Kevin Aguilar, age 54, previously of Farmingdale, New Jersey, was sentenced by U.S. District Judge Michael A. Shipp in Trenton federal court following Aguilar’s guilty plea to one count of conspiracy to commit bank fraud; seven counts of bank fraud; one count of conspiracy to commit wire fraud; three counts of wire fraud; one count of conspiracy to commit money laundering; one count of money laundering; and one count of aggravated identity theft. Aguilar was sentenced to 192 months in prison.

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

From April 2020 to April 2021, Aguilar conspired with others to submit seven fraudulent PPP loan applications and three fraudulent EIDL applications on behalf of four businesses. Based on the fraudulent applications, Aguilar received a total of approximately $3.3 million in PPP loan funds and approximately $450,000 in EIDL funds. After receiving the PPP and EIDL funds, Aguilar caused those funds to be transferred to other businesses that he created to give the false appearance that the PPP and EIDL funds were being used for legitimate purposes. Aguilar then used the PPP and EIDL funds to purchase residential properties in Sherman, Texas, a new truck for approximately $100,000, and to pay for other personal expenses.

In addition to the 192-month prison term, Judge Shipp sentenced Aguilar to 5 years of supervised release and ordered him to pay $3,772,567 in restitution, as well as a forfeiture money judgment of $3,772,567.  Judge Shipp also ordered the forfeiture of approximately $1,511,221.62 that law enforcement seized from twelve bank accounts, as well as the three real properties in Sherman, Texas. 

U.S. Attorney Habba credited special agents of the Federal Deposit Insurance Corporation – Office of Inspector General, under the direction of Special Agent in Charge Patricia Tarasca in New York; IRS – Criminal Investigation, under the direction of Special Agent in Charge Jenifer Piovesan; special agents of the Social Security Administration, Office of the Inspector General, under the direction of Acting Special Agent in Charge Amy Connelly; postal inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge Christopher A. Nielsen; special agents of the Federal Housing Finance Agency, Office of Inspector General, under the direction of Special Agent in Charge Robert Manchak; and special agents of the U.S. Attorney’s Office for the District of New Jersey, under the direction of Special Agent in Charge Thomas Mahoney.

The government is represented by Assistant U.S. Attorney David V. Simunovich of the U.S. Attorney’s Office’s Health Care Fraud Unit, Assistant U.S. Attorney Jennifer S. Kozar, of the U.S. Attorney’s Office’s Economic Crimes United in Newark, and Assistant U.S. Attorney Peter Laserna of the U.S. Attorney’s Office’s Bank Integrity, Money Laundering, and Recovery Unit.

The District of New Jersey COVID-19 Fraud Enforcement Strike Force is one of the five strike forces established throughout the United States by the U.S. Department of Justice to investigate and prosecute COVID-19 fraud. The strike forces focus on large-scale, multi-state pandemic relief fraud perpetrated by criminal organizations and transnational actors. The strike forces are interagency law enforcement efforts, using prosecutor-led and data analyst-driven teams designed to identify and bring to justice those who stole pandemic relief funds.

Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

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Defense counsel:         Alyssa Cimino, Esq., Fairfield, New Jersey; Robert Brady, Esq., Newton, New Jersey

NEWARK, N.J. – A former telecommunications company employee admitted to wire fraud conspiracy for his role in a scheme to fraudulently unlock the Subscriber Identification Module (SIM) cards of thousands of mobile phones, U.S. Attorney Alina Habba announced.

Richard Forrest Sherman, 46, pleaded guilty before U.S. District Judge Madeline Cox Arleo in Newark federal court, to an information charging him with wire fraud conspiracy.

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

Sherman worked at a multinational telecommunications company. While there, he managed an account for a customer that received an exemption to unlock the SIM cards of mobile devices. Sherman exploited this exemption by creating a series of customer accounts within the carrier’s system to make the accounts look like an affiliate company of the customer that actually received the exemption. Sherman and others then submitted bulk unlocking requests through these fake affiliate accounts that Sherman set up before leaving the telecommunications company.

Sherman, through his entities, received payment from others in exchange for causing the fake affiliate accounts to successfully send International Mobile Equipment Identity (IMEI) numbers in bulk to the carrier. The carrier, believing that the fake affiliate company was entitled to the unlocking exception, unlocked these IMEIs in bulk. Unlocking these IMEIs permitted others involved in the scheme to resell the phones for profit – the phones would have otherwise remained locked or required payment of a fee to be unlocked. Sherman set up the fake affiliate accounts in or around 2013; he and his conspirators exploited the fraud scheme until it was discovered in August 2020.

The wire fraud conspiracy count carries a maximum potential penalty of 20 years in prison and a fine of $250,000, or twice the pecuniary gain to the defendant or loss to the victims, whichever is greatest.

U.S. Attorney Habba credited special agents of the U.S. Secret Service’s Seattle Field Office, under the direction of Special Agent in Charge Glen Peterson, with the investigation leading to the charge.

The government is represented by Assistant U.S. Attorney Sean Nadel of the Narcotics/OCDETF Unit in Newark. 

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Defense Counsel: Henry Klingeman, Esq. and Robert Westinghouse, Esq. 

NEWARK, N.J. – An Essex County man was sentenced to four life sentences on April 23, 2025 for ordering and committing three murders and for his role in a large-scale narcotics enterprise, U.S. Attorney Alina Habba announced.

Michael Healy, 44, of Montclair, New Jersey, was convicted by a federal jury in April 2024 of racketeering conspiracy, conspiracy to distribute narcotics, conspiring to murder a federal witness, three counts of murder in aid of racketeering, and related firearms offenses following a four-week trial before U.S. District Judge Michael E. Farbiarz in Newark federal court. 

“Michael Healy orchestrated three murders in order to silence the victims in this case.  When Healy believed that someone in his drug trafficking enterprise was cooperating with law enforcement, he demonstrated that he was willing to go to the greatest lengths possible – to commit multiple acts of murder – to protect his profitable enterprise.  This sentence will prevent Healy from harming any other members of our community and will send a message that attacks on the justice system will not be tolerated.”

- U.S. Attorney Alina Habba

“Healy spent much of his life building an illegal drug trafficking enterprise, fueled by greed and violence,” FBI Acting Special Agent in Charge Terence Reilly said.  “He used his power to destroy communities through the distribution of poisonous narcotics and murdered those who he perceived as a threat to his empire. Now, he will spend the rest of his life in federal prison, where his power and money won’t matter.”

According to court documents and evidence presented at trial:

In February 2018, Healy found out that one of his conspirators in the drug trafficking enterprise (DTE) was cooperating with law enforcement by providing information about the drug enterprise. Healy ordered members of the Bloods in East Orange to kill the informant, referenced in the Indictment as ‘A.S.” On Feb. 3, 2018, outside the informant’s residence in Bloomfield, New Jersey, Healy’s conspirators shot and killed a bystander, referenced in the Indictment as “Victim-1,” believing the bystander was the informant. Realizing they killed the wrong person, Healy ordered the Bloods to finish the job, and on March 12, 2018, in Bloomfield, the conspirators killed the informant while he was walking his dog in the area of his residence. On April 6, 2018, believing that another member of the enterprise – identified in the indictment as “J.C.” – might also pose a risk to the Enterprise, Healy himself shot and killed “J.C.” in Newark.

Healy’s DTE operated in and around Newark beginning in approximately 2012. Between 2003 and 2012, Healy became a member of the Tree Top PIRU set of the Bloods street gang in Maryland. In and around 2012, Healy formed and led the Healy DTE, a large and sophisticated drug distribution organization that obtained, transported and distributed large amounts of cocaine, heroin, fentanyl and marijuana. Healy used his leadership status in the Tree Top PIRU Bloods to assist him with obtaining suppliers, recruiting and controlling enterprise members, and otherwise conducting the Healy DTE’s operations.

The Healy DTE transported multi-kilogram quantities of controlled substances from California to New Jersey by various means, including private aircraft, vehicles with hidden secret compartments, and the U.S. Postal Service. The Healy DTE then processed and repackaged the controlled substances at various “stash houses” in New Jersey. The Healy DTE distributed some of the controlled substances in New Jersey, including through Bloods gang members in East Orange.

The Court sentenced Healy to four life sentences plus 360 months’ imprisonment. On Counts One (Racketeering Conspiracy), Six (Murder of a Federal Witness), and Twelve (Drug Trafficking Conspiracy), Healy was sentenced to life in prison, each term ordered to run concurrent to each other and consecutive to the prison sentences imposed on the remaining counts.  On Counts Two (Murder in Aid of Racketeering for the murder of Victim-1), Five (Murder in Aid of Racketeering for the murder of A.S.), and Nine (Murder in Aid of Racketeering for the murder of J.C.), the Court imposed life sentences on each count to run consecutively.  On Counts Three, Seven, and Ten (each charging Discharge of a Firearm in Furtherance of a Crime of Violence), the Court imposed consecutive 10-year sentences for a total of 360 months, ordered to run consecutively to the sentences imposed on all other counts.

Thomas Zimmerman, Tyquan Daniels, and Ali Hill – all members of the Brick City Brims subset of the Bloods street gang in East Orange – previously pleaded guilty to racketeering conspiracy for their respective roles in the murders of Victim-1 and A.S.  Zimmerman was sentenced to a 37-year term of imprisonment; Daniels was sentenced to a 35-year term of imprisonment; and Hill was sentenced to a 25-year term of imprisonment.  In addition, on February 22, 2024, Leevander Wade pleaded guilty to racketeering conspiracy for his roles in all three murders, and was sentenced to a term of 36 years and 8 months’ imprisonment.

U.S. Attorney Habba credited special agents of the Newark FBI Joint Organized Crime Task Force, under the direction of Acting Special Agent in Charge Terence Reilly; the Newark Police Department, under the direction of Public Safety Director Emanuel Miranda; the Essex County Prosecutors Office, under the direction of Theodore N. Stephens, II; the Union County Prosecutor’s Office, under the direction of William A. Daniel, the East Orange Police Department, under the direction of Phyllis L. Bindi; the Montclair Police Department, under the direction of Todd M. Conforti, the Maryland Department of Public Safety and Correctional Services, Intelligence and Investigative Division, under the direction of Secretary Robert Green; the Ohio State Highway Patrol, under the direction of Colonel Charles A. Jones.

The government is represented by Senior Trial Counsel Robert L. Frazer and Assistant U.S. Attorney Samantha C. Fasanello.

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Defense counsel: Stephen Turano and Thomas Ambrosio

NEWARK, N.J. – Vault Medical Services, P.A. and Vault Medical Services of New Jersey, P.C. (collectively “Vault”), have agreed to pay the United States $8 million to resolve allegations that Vault violated the False Claims Act by knowingly submitting or causing the submission of false claims to the Health Resources & Services Administration COVID-19 Claims Reimbursement to Health Care Providers and Facilities for Testing, Treatment, and Vaccine Administration for the Uninsured Program (the “Uninsured Program”) for patients who had health insurance, U.S. Attorney Alina Habba announced.

Between approximately May 2020 and April 2022, the Uninsured Program reimbursed eligible providers for COVID-19 tests, testing-related items and services, treatment, and vaccines performed on uninsured individuals.  During the public health emergency, Vault provided various COVID-19 related services to patients across the country, including specimen collection services and vaccine administration.  Vault provided these services via telehealth and at in-person testing sites, and specimens were sent to laboratories for processing.  The settlement announced resolves allegations that Vault knowingly submitted or caused the submission of claims for these services to the Uninsured Program for patients who had active health insurance.

Specifically, the United States alleges Vault was aware of data integrity issues with patient information collected at the point of service but failed to substantively address those issues, and did not ensure the collection of complete patient information, including demographic and insurance information. The United States further alleges that Vault failed to properly confirm whether certain patients had health insurance coverage, and disregarded insurance information for individuals for whom Vault had valid insurance information on file, including confirmation through an insurance verification process, before submitting claims to the Uninsured Program.

“The Uninsured Program provided critical support for testing and treatment for uninsured Americans during the height of the pandemic. Our office will not tolerate the alleged fraud, abuse, and waste of these funds.”

- U.S. Attorney Alina Habba

“Individuals and entities that participate in the federal healthcare system are required by law to preserve the integrity of program funds,” stated Special Agent in Charge Naomi Gruchacz with the U.S. Department of Health and Human Services Office of Inspector General. “The settlement in this case involves a provider that knowingly sought reimbursement for federal funds to which they were not entitled, and by doing so jeopardized the provision of services for the uninsured.”

The resolution obtained in this matter was the result of a coordinated effort between the U.S. Attorney’s Office for the District of New Jersey and the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section, with assistance from HHS-OIG.

The government is represented by Assistant U.S. Attorney Kruti Dharia of the Opioid Abuse Prevention and Enforcement Unit and Trial Attorneys Lindsay DeFrancesco, Elizabeth J. Kappakas, and James Nealon in the Civil Division’s Commercial Litigation Branch (Fraud Section).

The government’s pursuit of these matters illustrates the government’s emphasis on combating healthcare fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Health and Human Services, at 1-800-HHS-TIPS (800-447-8477).

The claims resolved by the settlement are allegations only, and there has been no determination of liability.

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NEWARK, N.J. – A Union County, New Jersey, man who was employed as a New Jersey high school teacher, admitted to producing child pornography, U.S. Attorney Alina Habba announced.

Michael Hamilton, 53, pleaded guilty before U.S. District Judge Christine P. O’Hearn in Camden federal court to one count of producing child pornography.

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

Hamilton admitted to meeting a minor victim and engaging in sexual conduct with that victim, which Hamilton recorded on video. Law enforcement seized a copy of that video during the search of his home in October 2023. Hamilton also admitted to receiving and possessing sexually explicit messages, pictures, and videos of two other minor victims.

The charge of production of child pornography carries a mandatory minimum penalty of 15 years in prison and a maximum potential penalty of 30 years in prison and a $250,000 fine.  Sentencing is scheduled for September 9, 2025.

U.S. Attorney Habba credited FBI Newark’s Child Exploitation and Human Trafficking Task Force, under the direction of Acting Special Agent in Charge Terence G. Reilly, with the investigation.  U.S. Attorney Habba also thanked the Springfield Police Department and the Union County Prosecutor’s Office.

This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section (CEOS) in the Justice Department’s Criminal Division, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit: https://www.justice.gov/psc.

The government is represented by Rebecca Sussman and Robert Taj Moore of the Narcotics/OCDETF Unit in Newark.

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Defense counsel: Randy Davenport, Esq.

NEWARK, N.J. – A Hudson County man was sentenced today for his role in four robberies and two shootings in Jersey City, New Jersey, which took place the same night, U.S. Attorney Alina Habba announced today.

Rodney Williams, 33, of Jersey City, New Jersey pleaded guilty in December 2024 before U.S. District Judge Brian R. Martinotti in Newark federal court to an Indictment charging him with conspiracy to commit Hobbs Act robbery, conspiracy to use and carry a firearm in relation to a crime of violence, Hobbs Act robbery, attempted Hobbs Act robbery, using and carrying a firearm in relation to a crime of violence, and possession of a firearm and ammunition by a convicted felon.

In addition to the prison term, Judge Martinotti sentenced Williams to 5 years of supervised release.  Williams’ co-defendant, Siobhan Chandler, was sentenced on April 25, 2024 to 12 years’ imprisonment followed by 5 years’ supervised release for her role.

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

On the evening of November 14, 2021, Williams and Chandler committed multiple armed robberies and two shootings in Jersey City.  The criminal activity began when Williams, acting alone, robbed a store while he pointed his gun at the clerk and demanded money.  The clerk handed money to Williams who then fled.

A short time later, Williams, now with Chandler, robbed a gas station, where Williams pointed his gun at two attendants and demanded money.  When the attendants did not immediately comply, Williams shot one of the attendants in the chest.  Williams and Chandler then fled.

Williams and Chandler later entered another store, and Williams again pointed his gun at a clerk and demanded money.  The clerk handed money to Williams and he and Chandler fled.

Williams and Chandler then entered a nearby restaurant, and Williams again pointed his gun at the cashier and demanded money.  When the cashier did not immediately comply, Williams shot the cashier in the chest.  The cashier then handed money to Williams, after which Williams and Chandler fled.

U.S. Attorney Habba credited officers of the Jersey City Police Department, under the direction of Acting Chief Kearns, and the Hudson County Prosecutor’s Office with the investigation leading to today’s sentence.  She also thanked the Bureau of Alcohol, Tobacco, Firearms and Explosives for their assistance.

The government is represented by Assistant U.S. Attorneys Shontae D. Gray and Eli Jacobs of the Criminal Division in Newark.

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Defense counsel: John C. Whipple, Esq. and Adam M. Elewa, Esq. 

NEWARK, N.J. – A Hudson County, New Jersey man was arrested for allegedly inducing multiple minors to send him sexually explicit videos and pictures over online platforms, U.S. Attorney Alina Habba announced.

Julian Nova, 19, of Bayonne, New Jersey is charged by complaint with two counts of production of child pornography, two counts of coercion and enticement, one count of distribution of child pornography, and one count of possession of child pornography. Nova appeared on April 17, 2025, before U.S. Magistrate Judge James B. Clark, III in Newark federal court and was detained.

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

In or around October and November 2023, Nova coerced multiple minor victims to produce child pornography, which he then distributed online. After gaining the victims’ trust, including by posing as a teenage girl, Nova enticed the victims to send child pornography of themselves. Nova then blackmailed the minor victims into producing additional child pornography, some of which included acts of self-degradation, by threatening to distribute the existing images and videos to the minor victims’ family and friends if they did not comply.

The charges of production of child pornography carry a mandatory minimum penalty of 15 years in prison, a maximum potential penalty of 30 years in prison, and a $250,000 fine. The charges of coercion and enticement carry a mandatory minimum penalty of 10 years in prison, a maximum penalty of life imprisonment, and a $250,000 fine. The charge of distribution of child pornography carries a mandatory minimum of 5 years in prison, a maximum penalty of 20 years in prison, and a $250,000 fine. The charge of possession of child pornography carries a maximum potential penalty of 10 years in prison and a $250,000 fine.

U.S. Attorney Habba credited special agents of the FBI’s Child Exploitation Operational Unit with the investigation leading to the charges.  She also thanked the FBI Newark’s Child Exploitation and Human Trafficking Task Force under the direction of Acting Special Agent in Charge Terence Reilly for their assistance.

This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section (CEOS) in the Justice Department’s Criminal Division, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit: https://www.justice.gov/psc.

The government is represented by Assistant U.S. Attorney Lauren Kober of the Criminal Division in Newark and Trial Attorney Adam Braskich of the U.S. Department of Justice’s Child Exploitation and Obscenity Section.

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

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Defense counsel: Carol Dominguez, Esq.

TRENTON, N.J. – A Somerset County, New Jersey, man was convicted of drug trafficking, possessing firearms in furtherance of drug trafficking, and illegal possession of firearms, U.S. Attorney Alina Habba announced.

Malachi A. Muhammad, 50, of Somerset, was convicted of one count of possession with intent to distribute methamphetamine, one count of possession with intent to distribute fentanyl and heroin, and one count of possession with intent to distribute cocaine. Muhammad was also convicted of one count of possession of firearms in furtherance of a drug trafficking crime and one count of unlawful possession of firearms by a convicted felon. Muhammad was convicted following a one-week trial before U.S. District Judge Georgette Castner in Trenton federal court. The jury deliberated less than two hours before returning the guilty verdicts.

“This verdict underscores our commitment to keeping guns out of the hands of drug traffickers and dangerous drugs like methamphetamine, fentanyl, heroin and cocaine out of our communities. My message is clear: if you jeopardize the safety and security of New Jerseyans, we will hold you accountable. Our office and our law enforcement partners won’t rest until we do.”

- U.S. Attorney Alina Habba

“This conviction is an example of ATF’s dedication to working with our state and local partners in identifying, investigating, and apprehending criminals who prey upon innocent citizens and lessen the quality of life in our neighborhoods through the trafficking of narcotics and the illegal possession and use of firearms, said Newark ATF Special Agent in Charge L.C. Cheeks, Jr. “This is a reminder that there is no safe haven for those that wreak havoc or contribute to crime in our communities. ATF will never waver in our commitment to protecting the people we serve and public safety.”

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

On August 19, 2021, officers from the Lawrence Township Police Department responded to the southbound lanes of Route 1 near the Quaker Bridge Mall in response to calls from concerned citizens about a car stopped in the middle of the highway. Officers found Muhammad, the only occupant and driver of the car, initially unresponsive and believed him to be asleep or experiencing a medical emergency. After officers were able to arouse Muhammad, they noticed the handle of a handgun in between his legs. Officers removed Muhammad from the vehicle, and he was placed under arrest. A subsequent search of the vehicle revealed 91 pills of methamphetamine, 468 wax folds of fentanyl and heroin, 5 bags of cocaine, and five additional firearms, including two semi-automatic rifles, and over 150 rounds of ammunition.

The drug trafficking charges each carry maximum penalties of up to 20 years in prison and fines of up to $1,000,000. The firearm in furtherance of a drug trafficking crime charge carries a mandatory minimum sentence of five years imprisonment, which must be served consecutively to any other term of imprisonment, a maximum penalty of life imprisonment, and a fine of up to $250,000. The unlawful possession of a firearm charge carries a maximum penalty of 10 years imprisonment and a maximum fine of $250,000. Sentencing will be scheduled at a later date.

U.S. Attorney Habba credited special agents with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) under the direction of Special Agent in Charge L.C. Cheeks, Jr., the Lawrence Township Police Department, under the direction of Interim Chief Kevin Reading, the New Jersey State Police, under the direction of Colonel Patrick J. Callahan, and the Middlesex County Prosecutor’s Office, under the direction of Prosecutor Yolanda Ciccone, with the investigation leading to the guilty verdict.

The government is represented by Assistant U.S. Attorney Tracey A. Agnew and Special Assistant U.S. Attorney Jonathan S. Garelick of the U.S. Attorney’s Office Criminal Division in Trenton.

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NEWARK, N.J. – Two operators of a New Jersey marketing company were sentenced to prison for their roles in conspiracies to commit health care fraud and to pay and receive illegal kickbacks, United States Attorney Alina Habba announced.

Eric Karlewicz a/k/a “Anthony Mazza,” 46, of Rockland County, New York, and Nicco Romanowski, 33, of Roswell, Georgia, were sentenced by U.S. District Judge Esther Salas in Newark federal court following their guilty pleas to Informations charging conspiracy to violate the Federal Anti-Kickback statute and conspiracy to commit health care fraud.  Karlewicz was sentenced to 51 months in prison and Romanowski was sentenced to 80 months in prison.

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

From in or around June 2017 through in or around May 2019, Karlewicz and Romanowski participated in a scheme with durable medical equipment (“DME”) companies, telemedicine companies, and doctors to submit false claims to health care benefit programs, including Medicare and TRICARE, based on a circular scheme of kickbacks and bribes.  Karlewicz and Romanowski controlled a New Jersey-based marketing company, Empire Pain Center Holdings LLC (“Empire”), though which they and their co-conspirators identified Medicare and TRICARE beneficiaries to target.  Employees of Empire called the beneficiaries to pressure them to agree to accept DME, frequently consisting of back, shoulder, and knee braces. Karlewicz and Romanowski paid Empire’s employees commissions, bonuses, and incentives to encourage them to convince as many beneficiaries as possible to accept DME, regardless of medical necessity.

Karlewicz and Romanowski, through Empire, then paid kickbacks to telemedicine companies, which in turn paid kickbacks to doctors in exchange for prescriptions for the DME. As agreed upon, the doctors signed the prescription orders regardless of medical necessity, often without ever speaking to the patient.  Karlewicz and Romanowski distributed the prescriptions to DME suppliers around the country, with which Empire had additional kickback arrangements. These DME suppliers submitted claims for reimbursement to health care benefit programs including Medicare and TRICARE, and thereafter sent a portion of the proceeds to Empire as payment for the doctor’s orders generated through the conspiracy.  Empire received more than $63 million from DME suppliers in exchange for the referrals. 

In total, Karlewicz and Romanowski caused the submission of false and fraudulent claims to health care benefit programs totaling in excess of $127 million for DME.  Using proceeds from the scheme, Karlewicz and Romanowski purchased luxury vehicles, including a Ferrari, and Lamborghini, a Bentley, and a BMW.

In addition to the prison terms, Judge Salas sentenced each defendant to three years of supervised release and ordered them to pay $127,600,000 in restitution.  Karlewicz was ordered to forfeit over $63 million, and Romanowski was ordered to forfeit over $5.5 million.

United States Attorney Habba also announced that Karlewicz and Empire entered into a civil settlement agreement. As part of that civil settlement agreement, Karlewicz and Empire admitted to violating the False Claims Act and agreed to the entry of a consent judgment against them in the amount of $63.8 million.

The civil settlement agreement resolves a lawsuit filed under the whistleblower provision of the False Claims Act, which permits private parties, called relators, to file suit on behalf of the United States for false claims and share in a portion of the government’s recovery. The relator, Robert Jackson Tyler, Jr., will receive a share of the funds recovered by the United States pursuant to the False Claims Act.

United States Attorney Habba credited special agents of the FBI, under the direction of Acting Special Agent in Charge Terence G. Reilly in Newark, U.S. Department of Health and Human Services Office of Inspector General, under the direction of Special Agent in Charge Naomi Gruchacz, and U.S. Department of Defense, Office of Inspector General, Defense Criminal Investigative Service, Northeast Field Office, under the direction of Acting Special Agent in Charge Christopher Silvestro, with the investigation.

The government is represented in the criminal case by Assistant U.S. Attorney Katherine M. Romano of the Health Care Fraud Unit and Senior Trial Counsel Barbara Ward of the Bank Integrity, Recovery, and Money Laundering Unit in Newark.

The government is represented in the civil case by Assistant U.S. Attorney David V. Simunovich of the Health Care Fraud Unit and Trial Attorney Martha Glover of U.S. Department of Justice, Civil Fraud Section. 

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Defense counsel: Darren Gelber, Esq. (for Eric Karlewicz)

                            Alyssa Cimino, Esq. (for Nicco Romanowski)

TRENTON, N.J. – A Middlesex County, New Jersey woman admitted she defrauded the Social Security Administration for over eight years by improperly claiming her deceased mother’s Social Security retirement benefits, U.S. Attorney Alina Habba announced.

Deborah Bailey, 68, of Piscataway, New Jersey, pleaded guilty before U.S. District Judge Robert A. Kirsch in Trenton federal court to an Information charging her with theft of public money.

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

The Social Security Administration provided retirement benefits to Bailey’s mother. Those benefits were paid through electronic funds into Bailey’s mother’s bank account. After Bailey’s mother died in 2016, Bailey did not notify the Social Security Administration about her mother’s death, and she made withdrawals from that bank account between 2016 and 2024. Through an investigation by the Social Security Administration, it was determined that Bailey withdrew approximately $150,903.00 in retirement benefits.

The charge of theft of public money carries a maximum sentence of 10 years in prison and a fine of up to $250,000. Sentencing is scheduled for August 19, 2025.

U.S. Attorney Habba credited special agents of the Social Security Administration – Office of the Inspector General, under the direction of Special Agent in Charge Amy Connelly, with the investigation leading to the guilty plea.

The government is represented by Special Assistant U.S. Attorney Keith Abrams of the Narcotics/OCDETF Unit in Newark.

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Defense counsel: David Holman, Esq.

NEWARK, N.J. – A California resident was sentenced to 100 months in prison for possessing fentanyl for distribution, U.S. Attorney Alina Habba announced.

Timothy Alan Blank, 55, of Los Angeles, California, previously pleaded guilty before U.S. District Judge Evelyn Padin in Newark federal court to an information charging him with one count of possession with intent to distribute fentanyl.

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

On March 6, 2024, Blank, transported approximately five kilograms of fentanyl in his personal vehicle from the Los Angeles, California area across the United States into the District of New Jersey.  On March 8, 2024, Blank’s vehicle was stopped by law enforcement agents in Fort Lee, New Jersey when agents discovered the five kilograms of fentanyl inside the trunk area of the vehicle. Following his arrest, Blank admitted to law enforcement agents his intent to distribute the fentanyl inside of the District of New Jersey.

In addition to the prison term, Judge Padin sentenced Blank to three years of supervised release.

U.S. Attorney Alina Habba credited special agents of Homeland Security Investigations Newark, under the direction of Special Agent in Charge Ricky J. Patel, Customs and Border Protection Air and Marine Operations, the Bergen County Sheriff’s Office, the Fort Lee Police Department, and the FBI Los Angeles Field Office, with the investigation that led to the sentencing.

The government is represented by Assistant U.S. Attorney Vincent D. Romano of the Criminal Division in Newark.

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Defense counsel: Claressa L. Lowe

TRENTON, N.J. – A Warren County man was charged with possessing videos and images of child sexual abuse, U.S. Attorney Alina Habba announced.

Marc Panchenko, 53, of Washington Township, New Jersey, was charged in a one-count complaint with possession of child pornography. He had an initial appearance before U.S. Magistrate Judge Rukhsanah L. Singh in Trenton federal court and was ordered detained.

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

Following Panchenko’s release from federal custody in November 2023 for a prior offense, Panchenko was placed on supervised release and a monitoring software was installed on his cellular telephone to detect any images of child sexual abuse materials (“CSAM”). On or about March 3, 2025, the software alerted the authorities to the existence of CSAM on Panchenko’s phone. A further examination of the contents of the phone revealed the presence of over 600 videos of varying length and over 12,000 digital photos, an ongoing review of which has revealed numerous images of CSAM, including images depicting prepubescent minors engaged in sexually explicit conduct as further outlined in the complaint.

The charge of possession of child pornography carries a statutory maximum penalty of 20 years in prison, but due to his prior conviction on a similar charge, Panchenko is also facing a mandatory minimum penalty of 10 years in prison. He is also facing a fine of up to $250,000.

U.S. Attorney Habba credited special agents of the Child Exploitation and Human Trafficking Task Force—Newark Office of the Federal Bureau of Investigation, under the direction of Acting Special Agent in Charge Terence G. Reilly, the Washington Township Police Department, Warren County, under the direction of Chief of Police Christopher M. Jones, and the Warren County Prosecutor’s Office, under the direction of Acting Prosecutor Jessica Cardone, with the investigation leading to the charge.

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

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

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Defense counsel: Candace Hom, Esq.

WASHINGTON – MJH Healthcare Holdings, LLC, its subsidiary, MJH Life Sciences, LLC, and several affiliates of MJH Life Sciences, LLC (collectively MJH), have agreed to pay $2,006,424 to resolve allegations that they violated the False Claims Act by knowingly certifying their eligibility to use the periodicals postage rate offered by the United States Postal Service when they were ineligible for that rate.  MJH, based in Cranbury, New Jersey, publishes educational and promotional materials aimed at healthcare providers and patients.

The United States alleged that for 40 mailings of MJH publications between October 2021 and June 2024, MJH calculated the required postage based on the periodicals postage rate.  The periodicals rate is only available for publications where more than half of the mailed issues have been requested by recipients.  However, in calculating the percentage of these issues that were requested by the addressee, MJH certified figures to the Postal Service that were inaccurate in two ways.  First, it allegedly included among the “requesters” addressees appearing on lists received from third-party sources that had not qualified the listed individuals to be requesters, as required.  Second, MJH counted requests that had aged out.  Under Postal Service rules, requests must be less than three years old to qualify for the periodicals rate.  Had MJH excluded these categories from its calculations, as required, the percentage of requesters would have been less than 50 percent of recipients.  MJH should not have certified that its requester figures were accurate and that it was eligible for the lower periodicals rate for these mailings.

“The United States relies on individuals and companies doing business with it to accurately report what they owe the government.  When they do not, we will not hesitate to take appropriate steps to protect the public fisc.”

- U.S. Attorney Alina Habba

“The USPS OIG will continue to aggressively investigate companies that defraud the Postal Service,” said Tammy Hull, Inspector General U.S. Postal Service. “This settlement demonstrates that our special agents will work with the United States Department of Justice and the United States Attorney’s Office to identify companies that misrepresent their eligibility for lower postage rates.”

The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by John Burke, a former employe of one of the MJH affiliates.  Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. Mr. Burke will receive $341,092 under this resolution. The qui tam case is captioned U.S. ex rel. Burke v. MJH Healthcare Holdings, LLC, et al., No. 3:22-cv-07367 (D. N.J.).

The resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section, and the United States Attorney’s Office for the District of New Jersey with assistance from the United States Postal Service’s Office of the Inspector General.

The matter was investigated by Assistant United States Attorney Paul Kaufman and Trial Attorney Wesley Heath.

The claims resolved by the settlement are allegations only and there has been no determination of liability.

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TRENTON, NJ. –  A New Jersey man admitted to a decades-long scheme to defraud approximately 47 victim investors out of more than $6.9 million, U.S. Attorney Alina Habba announced.

Vincent Dispoto Jr., 67, formerly of Belmar, New Jersey, pleaded guilty before U.S. District Judge Zahid N. Quraishi to an information charging him with one count of wire fraud. 

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

Dispoto owned and operated Giddeon Financial Services, a purported investment services firm, and Liberty Mortgage Services, an alleged mortgage company. Beginning in or around 1988, Dispoto raised money through these and other entities by falsely claiming to victims, many of whom were elderly, that he would invest their money in low-risk investment products with guaranteed rates of return, including municipal bonds and certificates of deposits. Dispoto also told some victims that he was using their investments to fund loans and mortgages for medical professionals, which would generate long-term returns through interest payments. To perpetuate his fraud, Dispoto mailed victims false and fraudulent financial statements that purported to show significant increases in the value of their investments.

In reality, Dispoto did not invest the victims’ money as promised. Instead, he used it to make Ponzi-like payments to other victims, which he falsely claimed to be “returns” on investments. He also misappropriated victim money to fund his gambling and other personal expenses. Dispoto’s scheme collectively resulted in more than approximately $6,990,635.62 million in losses to victims.

The wire fraud charge carries a maximum penalty of 20 years in prison and a $250,000 fine, or twice the gross amount of gain or loss from the offense, whichever is greatest.   Sentencing is scheduled for August 26, 2025.

U.S. Attorney Habba credited special agents of the FBI, under the direction of Acting Special Agent in Charge Terence G. Reilly, with the investigation leading to the guilty plea.

The government is represented by Assistant U.S. Attorneys Jennifer Kozar of the U.S. Attorney’s Office Economic Crimes Unit in Newark.

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Defense counsel:  Areeb Salim, Esq. and John Yauch, Esq., Assistant Federal Public Defenders, Newark

NEWARK, N.J. – A New York man was sentenced to 36 months in prison for his role in a $38 million employment tax fraud scheme involving nursing homes he owned across the country, U.S. Attorney Alina Habba announced.

Joseph Schwartz, 65, of Suffern, New York, previously pled guilty to two counts of an indictment charging him with willfully failing to pay over employment taxes withheld from employees of his company, and willfully failing to file an annual financial report (Form 5500) with the Department of Labor for the employee 401K Benefit Plan Schwartz sponsored, before U.S. District Judge Susan D. Wigenton in Newark federal court.

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

Schwartz, an insurance broker and operator of Skyline Management Group LLC (“Skyline”), with headquarters in New Jersey, willfully failed to pay employment taxes relating to numerous health care and rehabilitation facilities that Skyline operated in 11 states.

According to the indictment, Schwartz was required to collect, truthfully account for, and pay over to the Internal Revenue Service (“IRS”) trust fund taxes withheld from the pay of employees of Skyline and related companies.  From October 2017 through May 2018, Schwartz caused taxes to be withheld from employees’ pay but failed to then pay over more than $38 million in employment taxes to the IRS.  As an administrator of the Skyline 401K plan, Schwartz further had an obligation to file an annual Form 5500 financial report with the Secretary of Labor for calendar year 2018, but knowingly and willfully failed to file the report.

U.S. Attorney Habba credited special agents of the IRS-Criminal Investigation, under the direction of Special Agent in Charge Jenifer Piovesan in Newark; Investigators with the Department of Labor-Employee Benefits Security Administration, under the direction of Regional Director Mark Seidel in the New York Regional Office; special agents of the FBI, under the direction of Acting Special Agent in Charge Terence G. Reilly; and the Department of Health and Human Services, Office of Inspector General, under the direction of Special Agent in Charge Naomi Gruchacz in the New York Regional Office, with the investigation that led to the sentencing in this case.

The government is represented by Assistant U.S. Attorneys Daniel H. Rosenblum and Kendall R. Randolph of the Criminal Division in Newark and Trial Attorney Shawn Noud of the Justice Department’s Tax Division.

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Defense counsel: Kevin H. Marino, Esq. 

Newark, N.J. – A Chicago man admitted to engaging in a wire and commodities fraud scheme that caused losses of more than $4 million, U.S. Attorney Alina Habba announced.

Philip Galles, 59, of Chicago, Illinois, pleaded guilty before U.S. District Court Judge Esther Salas in Newark federal court to both counts of an Indictment charging him with wire and commodities fraud.

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

Galles, a former commodities trader, defrauded his victims by falsely claiming that he would invest their money in commodity futures through his purported investment company, Tyche Asset Management, based in Chicago, Illinois. As part of the scheme, Galles and those working for him falsely told prospective investors that Tyche had a history of success using proprietary trading strategies, with extraordinary annual rates of return exceeding 100%.

But in reality, Galles made virtually no legitimate investments in commodity futures or otherwise. Galles instead ran Tyche like a Ponzi scheme and used investor money to pay back other investors and on to pay his own personal expenses—including high-end clothing, rent on a luxury apartment, and luxury automobiles.

During the investigation, Galles met with an undercover agent in New Jersey purporting to be an investment manager looking to make a large investment. Galles repeatedly lied during those meetings about Tyche and his personal history. Galles falsely claimed that Tyche had annual returns of 336%, raised over $2 billion within 60 days of starting the fund, and had prominent investors, including a Kuwaiti sovereign fund and a well-known owner of a professional sports team. Galles also falsely claimed that he graduated from a prominent university in the Midwest.

In total, through his scheme, Galles defrauded more than a dozen victims out of more than $4 million.

The wire fraud charge carries a maximum sentence of 20 years in prison and the commodities fraud charge carries a maximum sentence of 25 years in prison.  Both charges also carry a fine of up to $250,000 or twice the value of the funds involved in the transfer, whichever is greater.  Sentencing is scheduled for September 23, 2025.

U.S. Attorney Habba credited special agents of the United States Attorney’s Office, under the direction of Special Agent in Charge Thomas Mahony in Newark, and the inspectors of the United States Postal Inspection Service, under the direction of Inspector in Charge Christopher Nielsen, with the investigation. She also thanked the Commodity Futures Trading Commission and the National Futures Association for their role in the investigation.

The government is represented by Assistant U.S. Attorney Carolyn Silane of the Economic Crimes Unit and Andrew Kogan of the Cybercrime Unit in Newark.

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Defense counsel: Michael Koribanics, Esq.

TRENTON, N.J. – An Essex County, New Jersey, man was sentenced to 210 months in prison on charges of sex trafficking and prostitution-related offenses, U.S. Attorney Alina Habba announced.

Amin Sharif, 50, of Newark, was convicted by a jury in July 2024 of one count of attempted transportation of a victim with intent to engage in prostitution, one count of sex trafficking of a minor, one count of use of an interstate facility to promote unlawful activity, one count of transporting a victim with intent to engage in prostitution, and one count of persuading a victim to travel to engage in prostitution, following an eight-day trial before U.S. District Judge Michael A. Shipp in Trenton federal court.

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

In January 2021, the Federal Bureau of Investigation began investigating Sharif for sex trafficking offenses. Sharif recruited four females, including one minor victim, from states across the country—New York, Pennsylvania, Idaho, and Utah.  Sharif used multiple social media accounts and assumed aliases and false identities to recruit and entice victims.  He made promises of housing stability, payment of bills and living expenses, and promises that the victims could make up to thousands of dollars per day by working for him.  Sharif advertised the minor victim online, offering her for 32 sexual services.

Sharif was previously convicted of transporting a minor to engage in prostitution in federal court and was sentenced to 10 years in prison.

In addition to the prison term, Judge Shipp sentenced Sharif to 20 years of supervised release.

“Amin Sharif is a dangerous sex offender who has repeatedly preyed on vulnerable young women and minors in our society.  The Court’s sentence will prevent Sharif from harming additional victims and will send a strong signal to would-be traffickers that sex trafficking will not be tolerated in the District of New Jersey and will result in serious sentences.”

-U.S. Attorney Alina Habba

“Disguised with multiple names and social media profiles, and promising help financially, Sharif instead sexually exploited his victims for his own monetary gain. Sharif ignored the physical and psychological trauma he was causing these vulnerable women and minors.  FBI Newark Special Agents, Analysts, and Task Force Officers will stop at nothing to get heinous criminals off the streets, phones, and computers from where they lurk and put them behind bars where they belong,” stated FBI Acting Special Agent in Charge Terence G. Reilly. 

U.S. Attorney Habba credited special agents of the FBI Newark Field Office, under the direction of Acting Special Agent in Charge Terence G. Reilly, with the investigation leading to this sentencing.  She also thanked the FBI’s Rochester, New York Office and the Dansville Police Department for their assistance.

The government is represented by Assistant U.S. Attorneys Farhana C. Melo and Chelsea D. Coleman of the Criminal Division in Newark.

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Defense counsel: Laurie M. Fierro Esq., Kinnelon, New Jersey; Mary F. Khellah, North Bergen, New Jersey

NEWARK, N.J. – Eight individuals have been charged in connection with a large-scale lending scheme that targeted the owners of small businesses from across the United States, U.S. Attorney Alina Habba announced.

The complaint charges the defendants with multiple counts of conspiracy to commit wire fraud.  Joseph Rosenthal, 33, of Holmdel, New Jersey; Nicholas Smith, 31, of Bradley Beach, New Jersey; James Missry, 40, of New York City, New York; Paul Cotogno, 31, of Long Branch, New Jersey; Blaise Cotogno, 32, of Tinton Falls, New Jersey; and Adam Akel, 30, of Long Branch, New Jersey, appeared before U.S. Magistrate Judge James B. Clark, III in Newark federal court and were released on bail.  Matthew Robertson, 31, of Miami, Florida, who was arrested in the Southern District of Florida, appeared before U.S. Magistrate Judge Enjoliqué A. Lett and was released on bail.  Nicholas Winter, 38, of Asbury Park, New Jersey is currently in custody on unrelated state charges.

“These defendants perpetrated a years’ long scheme to defraud hard-working business owners in New Jersey and across the United States, stealing millions of dollars from thousands of victims.  These charges reflect our Office’s commitment to holding accountable those who prey on small business owners trying to support their communities and earn a decent living.”

- U.S. Attorney Alina Habba

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

Since June 2020, the defendants enriched themselves by defrauding small business owners interested in obtaining financing for their businesses.  Through misrepresentations and falsehoods, the defendants promised their victims that in exchange for money provided upfront, the defendants would ultimately extend a loan or line of credit to the victims.  In reality, once a victim provided the upfront payment to the defendants, the defendants did not extend financing to the victim.  Instead, the defendants kept the victims’ money and broke off communication.  As a result of the scheme, the defendants defrauded thousands of victims out of millions of dollars.

The wire fraud conspiracies charged in Counts One and Two of the criminal complaint each carry 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 Habba credited special agents and intelligence analysts of the FBI, under the direction of Acting Special Agent in Charge Terence Reilly in Newark, with the investigation leading to the charges.

The government is represented by Assistant U.S. Attorneys James H. Graham of the Special Prosecutions Division and Blake Coppotelli of the Economic Crimes Unit in Newark.

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

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NEWARK, N.J. – A Somerset County, New Jersey, disbarred attorney was sentenced to 30 months in prison for a wire fraud scheme, U.S. Attorney Alina Habba announced.

Lawrence Coven, 61, of Hillsborough, New Jersey, previously pleaded guilty before U.S. District Court Judge Robert Kirsch in Trenton federal court to an Information charging him with one count of wire fraud. Judge Kirsch imposed the sentence.

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

Coven operated and controlled Sunrise Enterprises LLC, which purported to provide financial services to investors. In reality, Coven induced victim investors into sending him funds by falsely representing that he would invest their money through Sunrise in exchange for large profits by providing short-term loans to borrowers who could not obtain standard loans. He falsely guaranteed investors returns of between 10 to 15 percent on their investments and told investors that their investments were risk-free. But instead of investing the money as he promised, Coven diverted investor funds for personal expenses, including utilities, entertainment, real estate, credit card bills, and cash withdrawals. And when investors began asking questions, Coven provided them with false assurances that their money was safe and used money from existing investors to make payments to other investors in a Ponzi-like fashion.

In addition to the prison term, Judge Kirsch sentenced Coven to three years of supervised release.

U.S. Attorney Habba credited special agents of the FBI, under the direction of Acting Special Agent in Charge Terence G. Reilly in Newark, with the investigation leading to this sentence.

The government is represented by Assistant U.S. Attorneys Fatime Meka Cano and Olta Bejleri of the Economic Crimes Unit in Newark.

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Defense counsel: Jeffrey Chiesa, Esq. 

CAMDEN, N.J. – A Camden County man admitted to illegally possessing a firearm as a felon and to conspiring with others to negotiate checks that had been stolen from the mail, U.S. Attorney Alina Habba announced.

Donovan Bunch, 23, of Sicklerville, New Jersey, pleaded guilty before U.S. District Judge Edward S. Kiel to a two-count information charging him with one count of being a previously convicted felon in possession of a firearm and one count of conspiring to commit bank fraud.

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

Donovan Bunch, Tracy Felder-Carter, Dante Ford, and Quamell Keyes-Griffin conspired to commit bank fraud by first obtaining checks that had been stolen from the U.S. mail. Bunch and other members of the conspiracy then would create counterfeit checks or alter the stolen checks by increasing the value of the check and changing the name of the payee to either a member of the conspiracy or somebody else recruited by the conspiracy. Bunch admitted that he and others would negotiate each counterfeit or altered check and then attempt to the withdraw the funds before the bank learned that the checks were illegitimate. The conspiracy involved the negotiation of checks at banks across southern New Jersey and elsewhere, with each check written for amounts upwards of several thousand dollars.

As part of the investigation, in July 2023, law enforcement officers executed search warrants at Bunch’s residence and in his car.  Officers recovered from Bunch’s car a stolen Glock pistol with a 31-round magazine that was loaded with 14 rounds of ammunition.  At the time he possessed the stolen firearm and ammunition found in his car, Bunch was on probation as a result of a prior New Jersey felony conviction.

The count of being a felon in possession of a firearm carries a maximum penalty of 15 years in prison and a fine of up to $250,000.  The count of conspiracy to commit bank fraud carries a maximum penalty of 30 years in prison and a fine of up to $1,000,000.  Sentencing is scheduled for August 18, 2025.

Felder-Carter, Ford, and Keyes-Griffin each previously pleaded guilty to their roles in the same bank fraud conspiracy to which Bunch pleaded guilty. Their sentencings are upcoming before Judge Kiel.   

U.S. Attorney Habba credited postal inspectors of the U.S. Postal Inspection Service – Philadelphia Division, under the direction of Inspector in Charge Christopher A. Nielsen, with the investigation leading to this plea.  She also thanked the Pennsylvania State Police – Media Station, Pennsauken Police Department, and the Springfield Township (Pennsylvania) Police Department for their assistance in the investigation.

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

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Defense counsel:

Bunch: Martin Isenberg, Esq. (Gibbsboro, New Jersey)

Felder-Carter: Michael Kahn, Esq. (Haddonfield, New Jersey)

Ford: Margaret M. Grasso, Esq. (Philadelphia, Pennsylvania)

Keyes-Griffin: John B. Brennan, Esq. (Marlton, New Jersey)

TRENTON, N.J. – An Ocean County, New Jersey, man was arrested and charged with traveling to a foreign place to engage in sexual conduct with a minor, U.S. Attorney Alina Habba announced.

Jacob Bauer, 28, of Toms River, is charged by complaint with one count of traveling with intent to engage in illicit sexual conduct and one count of engaging in illicit sexual conduct in a foreign place. He made his initial appearance on April 2, 2025, before U.S. Magistrate Judge Rukhsanah L. Singh in Trenton federal court.

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

From December 1, 2023 through December 10, 2023, Bauer, then 27 years old, traveled from the United States to Norway to engage in sexual activity with a 14-year-old female. Once in Norway, Bauer, staying at a hotel, engaged in sexual activity with the victim on at least one occasion. After returning to the United States, Bauer communicated over social media platforms with the victim and others about his sexual activities with the victim. During those conversations, Bauer acknowledged the victim’s age and status as a minor. After members of an online community that Bauer was active in learned of his sexual activities with a minor, Bauer was “doxxed” (his public information published online) by members of that community.

“Public safety is my number one priority for New Jersey’s residents, and my office is laser focused on protecting children and ending their exploitation at the hands of abusers. The conduct here is as reprehensible as it is egregious: a then-27-year-old male took pains to plan international travel from New Jersey to Norway for the purpose of having sex with a 14-year-old girl. These charges underscore how we are standing up for the most vulnerable and will not tolerate the sexual abuse of children. I commend our partners at the Federal Bureau of Investigation, law enforcement members at the state and local levels, and our international partners who assisted with this investigation.”

U.S. Attorney Alina Habba

"We have federal laws protecting children because they cannot defend themselves,” said Newark FBI Special Agent in Charge Terence G. Reilly. Most of these investigations go unnoticed because we do all we can to protect the innocent victims. However, the work FBI Newark agents and task force officers are doing should be heralded by all of us. Day in and day out - they are saving children who shouldn't have to experience unspeakable horrors and abuse perpetrated by child sexual predators."

Each of the charges, traveling with intent to engage in illicit sexual conduct and engaging in illicit sexual conduct in a foreign place, carries a potential maximum penalty of 30 years in prison and a fine of up to $250,000.

U.S. Attorney Habba credited the special agents and task force officers of the Federal Bureau of Investigation, under the direction of Special Agent in Charge Terence G. Reilly in Newark, with the investigation leading to the charges. She also thanked the New Brunswick Police Department, under the direction of Chief of Police Vincent Sabo, the Manchester Township Police Department, under the direction of Chief of Police Antonio Ellis, the FBI Legal Attaché Office, U.S. Embassy, Copenhagen, Denmark, the FBI Legal Attaché Office, U.S. Embassy, Warsaw, Poland, the Jackson County, Georgia Sheriff's Office, INTERPOL, the Norwegian Politiet, Troms District, the Norwegian Politiet, NC3 KRIPOS, and the Poland Policja CBZC, Central Cybercrime Bureau for their assistance in the investigation.

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

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

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Defense counsel: Andrea Aldana, Esq., Assistant Federal Public Defender

CAMDEN, N.J. – A Delaware woman admitted to conspiring to obtain more than $1 million of federal Paycheck Protection Program (PPP) loans and Economic Injury Disaster Loans (EIDL), U.S. Attorney Alina Habba announced.

Adrienne Ponzo, 50, of Bear, Delaware, pleaded guilty before U.S. District Judge Karen M. Williams to one count of wire fraud conspiracy.

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

The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a federal law enacted in March 2020 and was designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic.  One source of relief provided by the CARES Act was the authorization of hundreds of billions of dollars in forgivable loans to small businesses for job retention and certain other expenses, through a program referred to as the Paycheck Protection Program (PPP).  The CARES Act also authorized the U.S. Small Business Administration (SBA) to provide Economic Injury Disaster Loans (EIDLs) of up to $2 million to eligible small businesses that were experiencing substantial financial disruption due to the COVID-19 pandemic.

To obtain a PPP or EIDL loan, a qualifying small business was required to submit an application and provide information on its operations, including the number of employees and revenues or expenses.  In addition, businesses generally had to provide supporting documentation such as tax returns and bank statements.

Adrienne Ponzo conspired with others to defraud the SBA and the PPP program.  Ponzo’s co-conspirators recruited individuals who owned companies with little or no operations and introduced them to Ponzo.  Ponzo prepared fraudulent PPP and EIDL applications for these businesses and caused them to be electronically submitted to the SBA and PPP lenders. Ponzo prepared fraudulent bank statements and tax returns for companies that did not have them.  Ponzo received a portion of the loan proceeds for her role in the scheme.  14 loans totaling nearly $1,500,000 were part of the scheme.

The count of wire fraud conspiracy is punishable by a maximum of 20 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense.

Sentencing is scheduled for August 26, 2025.

U.S. Attorney Habba credited special agents of the Federal Deposit Insurance Corporation – Office of the Inspector General, under the direction of Patricia Tarasca, Special Agent-in-Charge, New York Regional Office; special agents of the FBI’s South Jersey Resident Agency, under the direction of Special Agent in Charge Wayne Jacobs in Philadelphia; special agents of the Social Security Administration, Office of the Inspector General, Boston New York Field Division, under the direction of Special Agent in Charge Amy Connelly; and special agents of the U.S. Department of Labor, Office of Inspector General, Northeast Region, under the direction of Special Agent in Charge Jonathan Mellone, with the investigation leading to this guilty plea.

The government is represented by Assistant U.S. Attorneys Daniel A. Friedman and Attorney-in-Charge Jason M. Richardson of the U.S. Attorney’s Office’s Criminal Division in Camden.

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

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Defense counsel:

Troy A. Archie, Esq., Cinnaminson, New Jersey

NEWARK, N.J. – Two Essex County, New Jersey men admitted their roles in an armed robbery of a U.S. Postal Service employee, U.S. Attorney Alina Habba announced.

Dyshawn Williams, 28, of Newark, New Jersey, pleaded guilty before U.S. District Judge Claire C. Cecchi to one count of conspiring to interfere with commerce by robbery and one count of assaulting certain federal officers or employees.  Karieem Stamps, 26, also of Newark, New Jersey, pleaded guilty before U.S. District Judge Claire C. Cecchi to wire fraud, aggravated identity theft, and unlawful possession of a firearm and ammunition by a convicted felon.

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

In November 2023, three individuals – including Williams – robbed a U.S. Postal Service employee at gunpoint in Newark, New Jersey.  The assailants stole the victim’s cell phone, keys, and wallet – including a credit card and debit card.  The robbery impeded the victim from delivering mail, which interfered with interstate commerce.  Shortly following the robbery, two individuals – including Stamps – used the stolen debit card to make purchases.  Both transactions passed through servers located outside of New Jersey.

On August 1, 2024, Stamps – who was convicted of a felony offense in 2020 – possessed a Glock 29 Gen5 handgun bearing serial number CCRT895 with an extended magazine and 26 rounds of 9-millimeter ammunition.

As to Williams, the counts of conspiracy to interfere with commerce by robbery and assaulting or impeding a federal employee carry a maximum penalty of 20 years in prison and a $250,000 fine.  As to Stamps, the count of wire fraud carries a maximum penalty of 20 years in prison and a $1,000,000 fine; the count of aggravated identity theft carries a mandatory two-year prison sentence; and the count of possession of a firearm and ammunition by a convicted felon carries a maximum penalty of 15 years in prison and a $250,000 fine.

U.S. Attorney Habba credited postal inspectors with the U.S. Postal Inspection Service, Philadelphia Division, under the direction of Christopher A. Nielsen, with the investigation.  She also thanked special agents of the Federal Bureau of Investigation, under the direction of Acting Special Agent in Charge Terence G. Reilly in Newark, deputies of the U.S. Marshals Service, under the direction of United States Marshal Juan Mattos Jr., police officers and detectives of the Newark Police Department, under the direction of Public Safety Director Emanuel Miranda, officers of the New Jersey State Parole Board, under the direction of Chairman Samuel J. Plumeri, Jr., and special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Newark Division, under the direction of Acting Special Agent in Charge L.C. Cheeks, Jr.

The government is represented by Assistant U.S. Attorney Eli Jacobs of the Organized Crime and Gangs Unit in Newark.

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Defense counsel:

Williams: Laura K. Gasiorowski, Westfield, New Jersey

Stamps: Joseph Z. Amsel, Newark, New Jersey

NEWARK, N.J. – A federal grand jury in the District of New Jersey returned a six-count indictment against a San Antonio, Texas woman for fraudulently creating and selling over $17 million worth of counterfeit retail coupons used at various retail stores across the United States for the purchase of household items, United States Attorney Alina Habba announced.

Janet Bernal, 48, is charged with one count of conspiracy to commit wire fraud and five counts of wire fraud.  According to the Indictment:

From June 2020 through August 2024, Bernal orchestrated a fraudulent scheme to produce and sell fraudulent, counterfeit coupons for use by purchasers at retail stores throughout the United States, including large pharmacies and grocery stores. In furtherance of her scheme, Bernal offered counterfeit coupons through a monthly fee-based subscription group that was available on a commonly used Internet cloud-based messaging application. Members subscribed to the group, paid the monthly fee, and then had unlimited access to numerous types of counterfeit coupons that Bernal posted for download.

Members paid the monthly fee via mobile cash accounts that Bernal directly controlled. Over the span of the scheme, members downloaded thousands of counterfeit coupons and redeemed them at retail stores throughout New Jersey and elsewhere in the United States. In total, the loss to the retail stores and to the manufacturers whose products were covered by the counterfeit coupons was in excess of $17 million.

The conspiracy and wire fraud counts carry a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gain or loss from the offense, per count.

United States Attorney Alina Habba credited postal inspectors of the United States Postal Inspection Service, under the direction of Inspector in Charge Christopher Nielsen, in Newark, with the investigation leading to the indictment.

The government is represented by Assistant U.S. Attorney Blake Coppotelli of the U.S. Attorney’s Office Economic 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.

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Defense counsel:

Carol Dominguez, Esq., Assistant Federal Public Defender

TRENTON, N.J. – An owner of several New Jersey businesses admitted to fraudulently obtaining over $3.2 million in federal Paycheck Protection Program (PPP) loans, U.S. Attorney Alina Habba announced.

Daniel Dadoun, 48, of Israel, formerly of South Plainfield, New Jersey, pleaded guilty before U.S. District Judge Robert Kirsch to an information charging bank fraud and money laundering. 

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

From April 2020 through August 2022, Dadoun engaged in a scheme to illegally obtain over $3.2 million in PPP loans for his New Jersey businesses by submitting false and fraudulent loan applications. After receiving the PPP loan proceeds, Dadoun sought to keep the money by submitting false and fraudulent PPP loan forgiveness applications that misrepresented payroll expenses and the number of employees at his companies.  In support of the loan and forgiveness applications, Dadoun submitted falsified tax documents and altered bank statements.

The charge of bank fraud carries a maximum penalty of 30 years’ imprisonment and a maximum fine of $1,000,000, or twice the gross gain to the defendant or gross loss to the victim, whichever is greatest.  The charge of money laundering carries a maximum penalty of 10 years’ imprisonment and a maximum fine of $250,000, or twice the gross gain to the defendant or gross loss to the victim, or twice the amount of criminally derived property involved in the transaction, whichever is greater.  Sentencing is scheduled for August 13, 2025.

U.S. Attorney Habba credited special agents of Homeland Security Investigations Newark, under the direction of Special Agent in Charge Ricky J. Patel, special agents of IRS – Criminal Investigation, New York Field Office, under direction of Acting Special Agent in Charge Harry T. Chavis, Jr., special agents of the Social Security Administration – Office of the Inspector General, Boston New York Field Division, under the direction of Special Agent in Charge Amy Connelly, and special agents of the U.S. Attorney’s Office for the District of New Jersey, under the direction of Special Agent in Charge Thomas Mahoney, with the investigation leading to the guilty plea.

The government is represented by Assistant U.S. Attorney Katherine M. Romano of the U.S. Attorney’s Office Health Care Fraud Unit in Newark.

The District of New Jersey COVID-19 Fraud Enforcement Strike Force is one of five strike forces established throughout the United States by the U.S. Department of Justice to investigate and prosecute COVID-19 fraud. The strike forces focus on large-scale, multi-state pandemic relief fraud perpetrated by criminal organizations and transnational actors. The strike forces are interagency law enforcement efforts, using prosecutor-led and data analyst-driven teams designed to identify and bring to justice those who stole pandemic relief funds.

Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

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Defense counsel: Anthony J. Pope, Jr., Esq.

NEWARK, N.J. – A Dominican national was arrested for assaulting a U.S. Department of Homeland Security, Immigration and Customs Enforcement (“ICE”) deportation officer, U.S. Attorney Alina Habba announced.

Darlin Leon, 39, of the Dominican Republic, is charged by complaint with one count of assaulting a federal officer.  Leon appeared on March 28, 2025 before U.S. Magistrate Judge Cathy L. Waldor in Newark federal court and was detained.

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

On March 26, 2025, Leon was in the lawful custody of ICE at a facility located in Newark, New Jersey pending removal from the United States. While being processed for removal, Leon struck the victim deportation officer in the head with a closed fist at least four times. As a result of Leon’s assault, the victim deportation officer sustained bodily injury, including lacerations and abrasions to the back of his head.

The charge carries a maximum penalty of 20 years in prison and a fine of up to $250,000.

U.S. Attorney Habba credited special agents of Homeland Security Investigations Newark, under the direction of Acting Special Agent in Charge Ricky J. Patel, with the investigation.

The government is represented by Assistant U.S. Attorney Ariel Douek of the Organized Crime and Gangs Unit in Newark.

This case is part of Operation Take Back America (https://www.justice.gov/dag/media/1393746/dl?inline), a nationwide initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations (TCOs), and protect our communities from the perpetrators of violent crime. Operation Take Back America streamlines efforts and resources from the Department’s Organized Crime Drug Enforcement Task Forces (OCDETFs) and Project Safe Neighborhood (PSN).

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

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Defense counsel: Linda Foster, AFPD, Esq.

NEWARK, N.J. – A Colombian national was indicted for assaulting a U.S. Department of Homeland Security, Immigration and Customs Enforcement (ICE) deportation officer, U.S. Attorney Alina Habba announced.

Hector Villegas-Alvarez, 27, of Colombia, is charged with one count of assaulting a federal officer. Villegas Alvarez appeared before U.S. Magistrate Judge Jessica S. Allen in Newark federal court last week and was detained.

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

On February 23, 2025, ICE deportation officers identified Villegas Alvarez as an individual without legal immigration status to be deported from the United States. ICE deportation officers stopped Villegas Alvarez and attempted to arrest him. Villegas Alvarez, however, physically resisted arrest and, in the process, forcefully elbowed one of the ICE deportation officers in the face.  As a result of Villegas Alvarez’s assault, the victim deportation officer sustained bodily injury, including a broken nose and a concussion from which she suffers severe post-concussion symptoms, including fainting and difficulty breathing.

“These charges reaffirm our commitment to protect the law enforcement officers who put their lives on the line for the people of New Jersey every day.  Those who choose to attack and assault law enforcement will continue to be met with swift and severe punishment.”

U.S. Attorney Alina Habba

The charge carries a maximum penalty of 20 years in prison and a fine of up to $250,000.

U.S. Attorney Habba credited deportation officers of United States Immigration and Customs Enforcement, Enforcement and Removal Operations Newark, under the direction of Field Office Director John Tsoukaris, with the investigation leading to the charges.

The government is represented by Assistant U.S. Attorney George L. Brandley of the Health Care Fraud Unit in Newark.

This case is part of Operation Take Back America (https://www.justice.gov/dag/media/1393746/dl?inline), a nationwide initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations (TCOs), and protect our communities from the perpetrators of violent crime. Operation Take Back America streamlines efforts and resources from the Department’s Organized Crime Drug Enforcement Task Forces (OCDETFs) and Project Safe Neighborhood (PSN).

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

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Defense counsel:  K. Anthony Thomas, Esq., Federal Public Defender

NEWARK, N.J. – An Essex County, New Jersey, man was sentenced to 38 months in prison for stealing federal benefits meant for the disabled child of his former girlfriend shortly after she went missing, and for an additional 8 months in prison for violating supervised release, U.S. Attorney Alina Habba announced.

Asmar Earp, 37, of Newark, New Jersey, previously pleaded guilty before U.S. District Judge Evelyn Padin in Newark federal court to three counts of an Indictment charging him with two counts of wire fraud and one count of aggravated identity theft.

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

Earp was in a romantic relationship and shared a house in Newark, New Jersey with V.W.  Through a program administered by Social Security Administration, V.W. received monthly payments on behalf of Victim-1, her disabled minor son, who was not capable of managing these benefits on his own.  On December 24, 2017, V.W. went missing and her whereabouts remain unknown. Six days after V.W.’s disappearance, Earp fraudulently gained control of Victim-1’s benefits by changing the PIN code on the debit card used to access those funds.  In March and April 2018, Earp also fraudulently used V.W.’s name, date of birth, and social security number to receive a replacement debit card to continue accessing and using Victim-1’s benefits.  Overall, from December 2017 through February 2020, Earp and others acting at his direction repeatedly and fraudulently took the money intended to help Victim-1 and used it on themselves.

U.S. Attorney Habba credited special agents of the Social Security Administration, Office of the Inspector General, Boston New York Field Division, under the direction of Special Agent-in-Charge Amy Connelly, and the Essex County Prosecutor’s Office, under the leadership of Acting Prosecutor Theodore N. Stephens II, with the investigation that led to the sentencing in this case.

The government is represented by Assistant U.S. Attorney Daniel H. Rosenblum of the Narcotics/OCDETF Unit in Newark.

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Defense counsel: Timothy Donahue, Assistant Federal Public Defender 

NEWARK, N.J. – People’s Rx, Inc., d/b/a The People’s Pharmacy Shoppe (“People’s”), a pharmacy located in Union City, New Jersey, has agreed to pay $995,420 to resolve allegations that it violated the False Claims Act by knowingly billing a federal health care program for medications that it never dispensed, U.S. Attorney Alina Habba announced.

According to the contentions of the United States in the settlement agreement:

The United States alleged that, from January 2, 2015, through January 24, 2022, People’s caused the submission of claims for reimbursement to the Medicare Part D Program and the New Jersey Medicaid Program for drugs that were never dispensed to beneficiaries. The government contends that inventory records showed that People’s did not purchase enough of these medications from wholesalers to fill the prescriptions billed to the federal health care program.

The resolution obtained in this matter was the result of a coordinated effort between the U.S. Attorney’s Office for the District of New Jersey and the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section.

The government is represented by Assistant U.S. Attorneys Robert Toll and Kruti Dharia of the Opioid Abuse Prevention and Enforcement Unit and Senior Trial Counsel Jennifer Cihon in the Civil Division’s Commercial Litigation Branch (Fraud Section).

The government’s pursuit of these matters illustrates the government’s emphasis on combating healthcare fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Health and Human Services, at 1-800-HHS-TIPS (800-447-8477).

The claims resolved by the settlement are allegations only, and there has been no determination of liability.

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NEWARK, N.J. – A Sussex County, New Jersey, man was sentenced to 80 months for distributing videos and images of child sexual abuse, U.S. Attorney Alina Habba announced.

Gaetano Lapegna, 67, of Franklin, New Jersey previously pleaded guilty before U.S. District Judge Claire C. Cecchi to an information charging one count of distribution of child pornography.  Judge Cecchi imposed the sentence today in Newark federal court.

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

From December 2022 to March 2023, Lapegna distributed videos and images of child sexual abuse via a publicly available online peer-to-peer (P2P) file-sharing program.  During the course of the investigation, an undercover law enforcement officer conducted online sessions using the P2P program, during which a user shared hundreds of videos and images of child sexual abuse from an IP address traced to Lapegna’s address.

Subsequent to a lawful search of his residence on March 30, 2023, law enforcement officers recovered over 100 items depicting child pornography on Lapegna’s thumb drive. Law enforcement also found that Lapegna’s computer was running the same version of the P2P program from which law enforcement downloaded child pornography from Lapegna.

In addition to the prison term, Judge Cecchi sentenced Lapegna to five years of supervised release and ordered restitution of $50,000.

U.S. Attorney Habba credited special agents of the U.S. Department of Homeland Security, Homeland Security Investigations Newark, under the direction of Special Agent in Charge Ricky J. Patel, with the investigation leading to today’s sentencing.  She also thanked the United States Postal Inspection Service, Sussex County Prosecutor’s Office, and Franklin Borough Police Department for their assistance.

The government is represented by Assistant U.S. Attorney Farhana C. Melo of the Economic Crimes Unit in Newark.

Defense counsel:  Claressa Lowe Esq., Assistant Federal Public Defender, Newark

CAMDEN, N.J. – A Philadelphia man admitted to conspiring to defraud the Internal Revenue Service by paying himself and his co-workers in cash in order to avoid payroll taxes, U.S. Attorney Alina Habba announced.

Henry “Hank” Collins, 53, of Philadelphia, Pennsylvania pleaded guilty before U.S. District Judge Karen M. Williams to an information charging him with one count of conspiring to defraud the IRS.

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

Collins worked at Davis Brothers Chimney Sweep & Masonry (“Davis Brothers”), a business located in Egg Harbor Township, New Jersey.  Collins admitted that between January 1, 2018 and April 30, 2024, he conspired with the spouse of the owner of Davis Brother to defraud the IRS.  As part of the conspiracy, Collins utilized a commercial check casher to negotiate a substantial amount of Davis Brothers’s gross receipts checks.  Collins used some of the resulting cash to pay himself and other Davis Brothers employees in cash.  Collins provided the rest of the cash to the business owner and spouse.  Collins then provided false and misleading information to the business’s outside accounting firm that resulted in the preparation and filing of false payroll tax returns that omitted the employees paid in cash and their cash wages.  Collins also admitted filing false individual income tax returns for himself that concealed his own cash wages.  Collins admitted that the conspiracy resulted in a tax loss of approximately $1 million.

The count of conspiracy carries a maximum penalty of 5 years in prison and a fine of up to $250,000.  Sentencing is scheduled for August 18, 2025.

U.S. Attorney Habba credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Jenifer Piovesan in Newark, with the investigation leading to today’s guilty plea.

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

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Defense counsel: Joseph Marrone, Esq., Philadelphia, Pennsylvania

TRENTON, N.J. – An Ocean County, New Jersey man admitted he defrauded the Social Security Administration for nearly eight years in order to improperly obtain over $250,000.00 in Social Security Disability Insurance Benefits, U.S. Attorney Alina Habba announced.

Krzysztof Niedzielski, 49, of Toms River, New Jersey, pleaded guilty yesterday before U.S. District Judge Zahid N. Quraishi in Trenton federal court to an Information charging him with theft of public money and making false statements to the Social Security Administration.

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

From at least as early as 2012 through at least as recently as 2020, Niedzielski obtained approximately $270,933.10 in Social Security disability benefits for himself, his wife, and his dependent children on the basis that he was disabled and could not work. During this period, Niedzielski managed and performed physical labor for a home improvement contracting company where he obtained a substantial income. However, during this time, Niedzielski failed to notify the Social Security Administration of his employment and income. Niedzielski knowingly and intentionally concealed this work from the Social Security Administration to prevent any reduction in disability benefits.

The charge of theft of public money carries a maximum sentence of 10 years in prison and the charge of making false statement to the Social Security Administration carries a maximum sentence of 5 years in prison. Each charge also carries a fine of up to $250,000. Sentencing is scheduled for August 5, 2025.

U.S. Attorney Habba credited special agents of the Social Security Administration – Office of the Inspector General, under the direction of Special Agent in Charge Amy Connelly, with the investigation leading to the guilty plea.

The government is represented by Special Assistant U.S. Attorney Keith Abrams of the Narcotics/OCDETF Unit in Newark.

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Defense counsel: Nicholas Moschella, Esq.