District of New Jersey

NEWARK, N.J. – A Bergenfield, New Jersey, woman was sentenced today to 37 months in prison for her role in a conspiracy to traffic approximately two kilograms of cocaine from Puerto Rico to New Jersey, U.S. Attorney Paul J. Fishman announced.

Sasha Melendez, 38, previously pleaded guilty before U.S. District Judge Claire C. Cecchi to an information charging her with one count of conspiring to distribute cocaine. Judge Cecchi imposed the sentence today in Newark federal court.

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

Melendez was the subject of an investigation by the U.S. Postal Inspection Service and the Drug Enforcement Administration (DEA) of an ongoing conspiracy to import cocaine from Puerto Rico. She was arrested on March 24, 2015 in Bergen County after she accepted delivery of a mail parcel from Puerto Rico containing approximately two kilograms of cocaine. Melendez admitted at her plea hearing that she conspired with co-defendant Ramis Esteves, 33, of New York, to distribute the cocaine.

In addition to the prison term, Judge Cecchi sentenced Melendez to three years of supervised release.

Estevez previously pleaded guilty to his role in the conspiracy and awaits sentencing.

U.S. Attorney Fishman credited postal inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge James V. Buthorn, and special agents of the DEA, under the direction of Special Agent in Charge Carl J. Kotowski, with the investigation.

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

Defense Counsel: Stacey Van Malden, Esq.

TRENTON, N.J. – A Mercer County, New Jersey, man was sentenced today to 135 months in prison for distributing images of child sexual abuse from his home computer, U.S. Attorney Paul J. Fishman announced.

Shawn Brown, 35, of Ewing, New Jersey, previously pleaded guilty before U.S. District Judge Anne E. Thompson to one count of a three-count an indictment charging him with distributing child pornography over the Internet. Judge Thompson imposed the sentence today in Trenton federal court.

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

Brown admitted that on July 14, 2013, he distributed a video depicting child sexual abuse on the Internet to another individual via instant messaging software. Authorities were first alerted to Brown’s conduct when an undercover agent discovered and downloaded images and videos containing child pornography that Brown had made available to users of a peer-to-peer file sharing network. Law enforcement traced the username and IP address of the sharer back to Brown’s residence. A review of Brown’s electronic devices, seized pursuant to a search warrant, revealed that Brown had been using aliases to contact underage girls online via instant messaging software and social media, where he had created a fake profile posing as a teenage boy.

In addition to the prison term, Judge Thompson sentenced Brown to lifetime supervised release.

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

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

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

NEWARK, N.J. – A New Jersey auto dealer was charged today for allegedly defrauding more than 140 Russian citizens who were customers of his auto sales business, U.S. Attorney Paul J. Fishman announced.

Sergey Kapustin, 47, of Warminster, Pennsylvania, was arrested today by special agents of the FBI and charged by complaint with one count of wire fraud and conspiring to commit wire fraud. He will appear this afternoon before U.S. Magistrate Judge Joseph A. Dickson in Newark federal court.

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

Kapustin was the owner and president of Global Auto Group, Effect Auto Sales and G Auto Sales, located in Elizabeth, New Jersey. Global bought and sold used cars, typically high-end vehicles that were classified as “salvaged.”

From January 2011 through December 2014, Kapustin allegedly operated business through a scheme to defraud customers, who usually lived in Russia, Ukraine or members of the former Soviet Union. Kapustin had one or more Russian language websites that offered for sale luxury vehicles, including Mercedes and Lexus that were normally priced below market value, that could be shipped to Finland for easy delivery to Russian citizens, if they agreed to pay full price upfront for the vehicle. Kapustin was Russian and his websites were geared to buyers who believed they were getting a “good deal” from a fellow countryman who could be trusted to follow through once the purchase price had been paid.

After the buyers would wire the full price to one or more bank accounts controlled by Kapustin, he would allegedly give them a litany of excuses and reasons for delay in delivery.  Unbeknownst to them, more often than not Kapustin had neither possession of nor title to the vehicles being sold. At some point, the victim would be offered a different, often inferior car, burdened with added shipping and storage costs.  The unsophisticated buyer, desperate to acquire something for money already spent, would oftentimes wire additional money to rescue the car from its storage; all to no avail. Those very few cars that did land in Finland were normally the product of salvage auctions for vehicles that had been immersed in or flooded with salt water and were inoperable. Kapustin allegedly stole approximately $2 million in this manner.

The count with which Kapustin is charged carries a maximum penalty of 20 years and $250,000 fine.

U.S. Attorney Fishman credited the special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, with the investigation leading to Kapustin’s arrest.

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

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

CAMDEN, N.J. – A Burlington County, New Jersey, pharmacist today admitted his role in a long-running conspiracy to illegally distribute and dispense large quantities of oxycodone and other controlled substances from two pharmacies located in Medford, New Jersey, U.S. Attorney Paul J. Fishman announced.

David Goldfield, 58, of Medford Lakes, pleaded guilty before U.S. District Judge Jerome B. Simandle in Camden federal court to Count 1 of an indictment charging him with conspiracy to illegally distribute and dispense oxycodone and other Schedule II controlled substances, and Counts 10 through 15, which charge him with multiple substantive counts of illegal distribution and dispensing of oxycodone.

The guilty plea comes just six weeks after Goldfield and Michael Ludwikowski, 44, of Medford, were arrested on Nov. 14, 2016.

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

Goldfield was employed by Ludwikowski at Olde Medford Pharmacy and Medford Family Pharmacy. Goldfield admitted that from January 2010 through August 2013, he conspired with Ludwikowski to distribute and dispense oxycodone for individuals they knew were obtaining the pain killers for resale or for non-medical use.

Goldfield admitted, based upon his training and experience, as well as the “red flags” he observed, it was obvious that many of the oxycodone prescriptions that Goldfield and Ludwikowski filled were fraudulent. These red flags included prescriptions for oxycodone that appeared to have been “washed” or “bleached.” According to the indictment, this was achieved through a chemical process that removed the original writing for a non-narcotic substance. The customers then rewrote the prescriptions for their drug of choice, including oxycodone.

Other red flags included customers who were believed to be drug addicts, or believed to be selling or abusing the oxycodone; customers seeking oxycodone with residential addresses far from the Medford area, including for example, Camden, New Jersey; the same customer presenting oxycodone prescriptions in numerous different names, including the names of both men and women; and customers presenting oxycodone prescriptions for a 30-day supply multiple times a week.

On occasions that Goldfield had suspicions about the legitimacy of particular prescriptions, Ludwikowski allegedly told Goldfield to fill some of those prescriptions anyway. In addition, Goldfield admitted that he and Ludwikowski stored bottles of oxycodone in a pull-out drawer to which pharmacy employees working at the front counter would have easy access, rather than in a locked safe.

When Ludwikowski became concerned with the high number of oxycodone prescriptions that were being filled, Ludwikowski and Goldfield – in an attempt to evade law enforcement – turned away customers who were bringing in fraudulent prescriptions by telling them that the Drug Enforcement Administration (DEA) had reduced their supply of oxycodone.

The conspiracy charge and each substantive count of illegal distribution and dispensing of oxycodone charge to which Goldfield pleaded guilty carry a maximum potential penalty of 20 years in prison and a $1 million fine, or twice the gross gain or loss from the offense. Sentencing is scheduled for March 31, 2017.

The allegations against Ludwikowski are merely accusations, and he is innocent unless and until proven guilty.  

U.S. Attorney Fishman credited special agents of the FBI’s Newark Field Office, under the direction of Special Agent in Charge Timothy Gallagher; the DEA New Jersey Division, under the direction of Special Agent in Charge Carl J. Kotowski; the Medford Police Department under the direction of Chief Richard J. Meder; the Moorestown Police Department under the direction of Chief Lee R. Lieber; the Florence Police Department under the direction of Chief John Bunce; and the Lumberton Police Department under the direction of Chief Tony Diloreto, with the investigation leading to the charges.         

The government is represented by Assistant U.S. Attorney Justin C. Danilewitz and Senior Litigation Counsel Jason M. Richardson of the U.S. Attorney’s Office in Camden, as well as Assistant U.S. Attorney Sarah Devlin of the Office’s Asset Forfeiture and Money Laundering Unit.

Defense counsel: Gilbert J. Scutti, Esq.

NEWARK, N.J. – A Mercer County, New Jersey, man appeared in federal court today to face charges that he sexually abused a woman on a flight from India to Newark Liberty International Airport, U.S. Attorney Paul J. Fishman announced.

Ganesh Parkar, 40, of Windsor, New Jersey, was charged by criminal complaint with one count of abusive sexual contact on an airplane. Parkar, who is an Indian citizen, had his initial appearance this afternoon before U.S. Magistrate Judge Mark Falk in Newark federal court and was released on $50,000 unsecured bond, home detention with electronic monitoring and surrender of his passport and all travel documents.

According to the complaint:

While on a Dec. 21, 2016, Air India flight from Mumbai to Newark, Parkar moved from his ticketed seat in the business class section of the plane to the economy class section and sat next to a female passenger seated in a center row. When the woman fell asleep, Parkar placed his hand on her breast without her consent.

The abusive sexual contact charge carries a statutory maximum of up to two years in prison and a $250,000 fine.

U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark; special agents of Immigration and Customs Enforcement’s Homeland Security Investigations, Newark Division, under the direction of Special Agent in Charge Terence S. Opiola; and the Port Authority Police Department of New York-New Jersey, with the investigation leading to today’s arrest.

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

NEWARK, N.J. – A United States commercial airline pilot who held a U.S Customs and Border Protection (CBP) Global Entry Card today admitted smuggling $195,736 in undeclared currency into the country at Newark Liberty International Airport, U.S. Attorney Paul J. Fishman announced. 

Anthony Warner, 55, of Dallas, Texas, pleaded guilty before U.S. District Judge Claire C. Cecchi in Newark federal court to an information charging him with bulk cash smuggling.

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

Global Entry is a CBP program that allows expedited clearance upon arrival in the United States for pre-approved travelers who have been determined to be low-risk. Pre-approval must be completed before enrollment, and the process includes a background check and an in-person interview. At airports, program members proceed to Global Entry kiosks, present their machine-readable passport or U.S. permanent resident card, place their fingers on the scanner for fingerprint verification, and complete a Customs verification. The kiosk issues the traveler a transaction receipt and directs the traveler to baggage claim and the exit.

When Warner arrived at Newark Liberty International Airport on Jan. 10, 2016, the Global Entry computer system was not functioning, so he presented his customs declaration to a CBP officer.   CBP’s screening determined that he was carrying a laptop-style bag that contained $195,736 in United States currency wrapped in newspaper.  He also had 10 rings, four sets of earrings, and other assorted jewelry of undetermined value. 

Warner’s possession of currency was contrary to the statements in his customs declaration and verbal statements that he made to CBP.  Because of this, Warner was arrested by special agents of Immigration and Customs Enforcement’s Homeland Security Investigations.

The charge to which Warner pleaded guilty carries a maximum punishment of five years in prison and forfeiture of all property involved in the offense. In his plea agreement, Warner agreed to forfeit the $195,736 in undeclared U.S. currency. Sentencing is scheduled for April 18, 2017.

U.S. Attorney Fishman credited special agents of Immigration and Customs Enforcement’s Homeland Security Investigations, Newark Division, under the direction of Special Agent in Charge Terence S. Opiola, and U.S. Customs and Border Protection, under the leadership of Robert E. Perez, Director, New York Field Office, with the investigation leading to today’s guilty plea. 

The government is represented by Assistant U.S. Attorney Sara F. Merin of the OCDETF/Narcotics Unit in Newark.

Defense counsel: Steven Altman and Jeffrey Altman Esqs., New Brunswick, New Jersey

 

CAMDEN, N.J. – Two Camden, New Jersey, men were sentenced to prison today for their roles in a conspiracy to rob a drug stash house of multiple kilograms of cocaine that they believed would be stored at the location, U.S. Attorney Paul J. Fishman announced.

Cordero Hodge, 25, and Jameel Pierce, 25, were sentenced to 160 and 140 months in prison, respectively. Hodge and Pierce previously pleaded guilty in May 2016 to separate superseding informations charging them each with one count of conspiracy to distribute and to possess with intent to distribute 500 grams or more of cocaine, and one count of possessing a firearm in furtherance of a drug trafficking crime. U.S. District Judge Jerome B. Simandle imposed both sentences today in Camden federal court.

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

In October 2013, Hodge and Pierce planned a gunpoint robbery of a drug stash house in order to steal multiple kilograms of cocaine from drug dealers at the location.

During the investigation – which led to the recovery of a sawed-off shotgun from Pierce and a .40 caliber firearm from Hodge – Pierce was recorded saying that he and Hodge would “off them,” referring to killing the occupants of the stash house. Hodge was recorded seeking a silencer for his firearm, saying that he could use a potato, but that it would not silence a .40 caliber firearm.

Special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) arrested Hodge and Pierce when they arrived at a meeting location in Maple Shade, New Jersey, on Oct. 18, 2013.

A subsequent ballistics comparison linked the same .40 caliber firearm recovered on Oct. 18, 2013 to evidence recovered from the scene of the Aug. 25, 2013 murder of Surinder Singh, who worked as an attendant at Garden State Fuel gas station in Woodbury, New Jersey.

In addition to the prison terms, Judge Simandle sentenced Pierce and Hodge to five years of supervised release.

U.S. Attorney Fishman credited special agents with the ATF Camden Field Office, under the direction of Special Agent in Charge George P. Belsky in Newark, with the investigation leading to today’s sentences. He also thanked the Drug Enforcement Administration (DEA) Maple Shade Field Office, as well as the Gloucester County Prosecutor’s Office, the Cherry Hill Police Department, and the Maple Shade Police Department.

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

Defense counsel:  

Hodge: Teri S. Lodge Esq.

Pierce: John F. Renner Esq.

Scheme Targeted Hundreds of Investors in Over 30 Countries, Including the United States

 

NEWARK, N.J. – A Thai man was arrested and charged with allegedly orchestrating a scheme to defraud hundreds of investors worldwide of at least $1.4 million through his operations of a purported online day trading firm, U.S. Attorney Paul J. Fishman announced today.

Naris Chamroonrat, 33, of Bangkok, Thailand, is charged by complaint with one count of conspiracy to commit securities fraud and one count of wire fraud. Chamroonrat was arrested by special agents of the FBI on Dec. 20, 2016, at the Los Angeles International Airport in California. He is scheduled to appear later today before U.S. Magistrate Judge Frederick Mumm in Los Angeles federal court.  

According to the complaint:

From December 2013 to June 2015, Chamroonrat and his conspirators allegedly solicited individual investors to open day-trading accounts with his company, Nonko Trading, and to wire thousands of dollars to the company to fund those accounts. Instead of using the money to fund the accounts, he and his conspirators allegedly stole $1.4 million from more than 260 investors in more than 30 countries. To cover up the theft, Chamroonrat provided the victims with online trading simulator, or “demo,” accounts, but told the investors they were real accounts to be used to trade securities. The majority of those funds were transferred to foreign bank accounts controlled by Chamroonrat and used for personal expenses or other unauthorized transactions. The victims of the scheme included at least 180 investors from the United States, including several in New Jersey.

Chamroonrat and others chose as victims those customers they believed would not make money day trading, and would therefore be less likely to try to withdraw funds from their accounts. These inexperienced, unsophisticated “losing” traders would simply believe they lost their money trading in the open markets.  If traders on the demo accounts started to appear profitable, Nonko would switch them to real accounts. 

Chamroonrat and his conspirators discussed the scheme in detail in email and online chat communications.  In one online communication between Chamroonrat and a conspirator on Feb. 3, 2014, Chamroonrat allegedly discussed the scheme, which he commonly referred to as Nonko’s “TRZ Program.”  He stated, “We also have the trz program, where instead [of] a live account it’s a trz account and if they blow it all up, then great, firm still profits.”  The conspirator responded: “and thing with TRZ that freaks me out … THE ONLY THING … someone … will make money … what happens when they do make money?” Chamroonrat replied, “bump them off of trz, put them on a real account[,] give them more leverage in exchange for a profit split.”

The conspiracy count with which Chamroonrat is charged carries a maximum potential penalty of five years in prison and a $250,000 fine, or twice the gain or loss from the offense.  The wire fraud count carries a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gain or loss from the offense.

In a separate civil action, the Securities and Exchange Commission today filed a complaint in Newark federal court charging Chamroonrat with violating and aiding and abetting violations of the antifraud provisions of the securities laws. The complaint seeks a permanent injunction as well as the return of ill-gotten gains plus interest and penalties.

U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher, with the investigation leading to today’s charges. He also thanked the SEC for its valuable assistance in the investigation.

The government is represented by Assistant U.S. Attorney Nicholas P. Grippo of the Economic Crimes Unit.

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

TRENTON, N.J. – A former Borough of Belmar fire marshal and senior lead fire protection inspector with the Picatinny Arsenal Fire Department today pleaded guilty to fraudulently reporting his hours on time cards to the Borough of Belmar, causing it losses of approximately $34,141, U.S. Attorney Paul J. Fishman announced.

John Rizzitello, 45, of Nashville, Tennessee, formerly of Freehold, New Jersey, pleaded guilty before U.S. District Judge Michael A. Shipp in Trenton federal court to an information charging him with fraudulently obtaining funds that belonged to the Borough of Belmar, a local government receiving federal funds. 

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

From January 2013 to December 2014, Rizzitello intentionally reported, and was compensated for, working approximately 1,540 hours for the Borough of Belmar Fire Department that he did not work, including instances when he was actually working at Picatinny Arsenal.

During the plea hearing, Rizzitello also admitted that he intentionally reported, and was compensated for, working approximately 508 hours for the Picatinny Fire Department that he did not work, causing losses to Picatinny of approximately $10,644.

The charge to which Rizzitello pleaded guilty carries a maximum potential penalty of 10 years in prison and $250,000 fine, or twice the gross gain or loss from the offense. Sentencing is scheduled for March 27, 2016.

U.S. Attorney Fishman credited investigators with the Picatinny Arsenal Criminal Investigations Unit, under the direction of Picatinny Arsenal Garrison Commander Lieutenant Colonel Jeffrey Ivey, the Picatinny Arsenal Inspector General and Internal Review office, under the direction ARDEC Director John Hedderich, and criminal investigators with the U.S. Attorney’s Office with the investigation leading to today’s guilty plea.  

The government is represented by Assistant U.S. Attorney Barbara R. Llanes of the U.S. Attorney’s Office Special Prosecutions Division in Newark.   

Defense counsel: Ryan J. Clark, Esq., New Jersey

NEWARK, N.J. – A Rahway, New Jersey, man was sentenced today to 57 months in prison for his role in a conspiracy to traffic approximately four kilograms of ethylone from China to New Jersey, U.S. Attorney Paul J. Fishman announced.

Michael Correa, 32, previously pleaded guilty before U.S. District Judge Katharine S. Hayden to an information charging him with one count of conspiring to distribute Ethylone, a Schedule I controlled substance. Judge Hayden imposed the sentence in Newark federal court.

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

From October 2013 through July 2014, Correa conspired with Thomas Seymore, 38, of Carteret, New Jersey, and others to distribute approximately four kilograms of ethylone, which had been ordered from China and shipped to a location in Teaneck, New Jersey. Ethylone, sometimes referred to as “bath salts” or “molly,” is an illegal synthetic drug that stimulates the central nervous system and can cause hallucinogenic effects. 

In addition to the prison sentence, Judge Hayden also sentenced Correa to three years of supervised release. Seymore pleaded guilty to his role in the scheme on Oct. 25, 2016 and is scheduled for sentencing on Feb. 1, 2017.

U.S. Attorney Fishman credited special agents of the Drug Enforcement Administration (DEA), under the direction of Special Agent in Charge Carl J. Kotowski; special agents of the U.S. Department of Homeland Security-Homeland Security Investigations, under the direction of Special Agent in Charge Terence S. Opiola; and postal inspectors with the U.S. Postal Inspection Service, under the direction of Inspector in Charge James V. Buthorn, with the investigation.

The government is represented by Assistant U.S. Attorney Jonathan M. Peck of Organized Crime Drug Enforcement Task Force Unit (OCDETF).

Defense Counsel:   Steven Altman Esq., New Brunswick, New Jersey

TRENTON, N.J. – A former supervisor at Amtrak in Essex County, New Jersey, today admitted soliciting and accepting more than $7,000 worth of items for his personal use from a vendor as a reward for spending more than $185,000 with the vendor in his capacity as an Amtrak Building and Bridges Supervisor, U.S. Attorney Paul J. Fishman announced.

Louis Moschitti, 68, of Fairless Hills, Pennsylvania, pleaded guilty before U.S. District Judge Peter G. Sheridan in Trenton federal court to an information charging him with one count of corruptly soliciting things of value with the intent to be rewarded in connection with transactions of Amtrak—a federally funded organization. 

According to documents filed and statements made in court:

From April 2010 to July 2013, Moschitti, a building and bridges supervisor, used his Amtrak Procurement Charge Card to make more than $185,000 in purchases from Bayway Lumber, a Linden, New Jersey, company that sold commercial and industrial products. He received items worth more than $7,000 intended as a reward for his official purchases. These included a Panasonic television, a Nikon camera, Michelin tires, and an Onkyo sound system.  Moschitti retired from Amtrak in August 2014. Robert Dattilo, a part owner of Bayway Lumber, previously pleaded guilty to conspiracy to commit mail and wire fraud in connection with this and other fraudulent activity and was sentenced by Judge Sheridan on July 15, 2016 to four years in prison.    

The charge to which Moschitti pleaded guilty carries a maximum potential penalty of 10 years in prison and a maximum fine of $250,000 or twice the gross gain or loss associated with the offense, whichever is greatest. Sentencing is scheduled for March 27, 2017.

U.S. Attorney Fishman credited special agents with the Office of Inspector General, U.S. Department of Housing and Urban Development, under the direction of Special Agent in Charge Christina Scaringi; special agents of the FBI direction of Special Agent in Charge Timothy Gallagher; and the Office of Inspector General, Amtrak, under the direction of Special Agent in Charge Robert Koons, with the investigation leading to today’s guilty plea.   

The government is represented by Assistant U.S. Attorneys Barbara R. Llanes and Cari Fais of the U.S. Attorney’s Office Special Prosecutions Division in Newark.  

Defense counsel: Marc Leibman Esq., New Jersey

TRENTON, N.J. – A Bronx, New York, man was sentenced today to 120 months in prison for driving to Clifton, New Jersey, to pick up a suitcase filled with 22 kilograms of heroin, U.S. Attorney Paul J. Fishman announced.

Emmanuel Gonzalez, 32, previously pleaded guilty before U.S. District Judge Peter G. Sheridan to an information charging him with conspiracy to distribute and possess with intent to distribute a kilogram or more of heroin. Judge Sheridan imposed the sentence today in Trenton federal court.

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

On Feb. 5, 2016, law enforcement observed a tractor trailer, driven by Sauro D. Estevez Figueredo, 48, of Miami, and Alberto Mora, 53, of Morriston, Florida, parked at an intersection near a store in Clifton. That afternoon, Gonzalez and Edwin Alamo Jr., 22, of Bronx, drove to the tractor trailer and left with a suitcase given to them by Mora.

Subsequent traffic stops later revealed 22 kilograms of heroin in Gonzalez and Alamo’s possession. Law enforcement also found 10 kilograms of cocaine and 10 kilograms of fentanyl still remaining at the tractor trailer.

In addition to the prison term, Judge Sheridan sentenced Gonzalez to five years of supervised release.

U.S. Attorney Fishman credited special agents of the Drug Enforcement Administration (DEA), under the direction of Special Agent in Charge Carl J. Kotowski in Newark, with the investigation leading to today’s sentencing.

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

Defense Counsel: James Murphy Esq., Princeton, New Jersey        

NEWARK, N.J. – A doctor practicing in Staten Island, New York, was charged today with accepting bribes in exchange for test referrals as part of a long-running and elaborate scheme operated by Biodiagnostic Laboratory Services LLC (BLS), of Parsippany, New Jersey, its president and numerous associates, U.S. Attorney Paul J. Fishman announced.

Thomas V. Savino, 57, of Staten Island, was indicted by a federal grand jury in Newark. The indictment charges Savino with one count of conspiring to commit violations of the Anti-Kickback Statute, the Federal Travel Act and wire fraud; three substantive violations of the Anti-Kickback Statute; three substantive violations of the Federal Travel Act; and three substantive violations of wire fraud. Savino will be arraigned at a later date.              

According to the indictment:

From July 2012 through April 2013, Savino received cash bribes totaling at least $25,000 from BLS employees and associates. Savino’s referrals generated approximately $375,000 in lab business for BLS.

Savino is the fourth physician to be indicted in connection with the BLS bribery scheme. Ahmed El Soury was indicted Dec. 13, 2016 and arraignment this afternoon in Newark federal court. Brett Ostrager – who was indicted Aug. 11, 2015 and pleaded guilty on Dec. 22, 2015 – was sentenced on June 8, 2016 to 37 months in prison. Bernard Greenspan was indicted on March 14, 2016 and is scheduled for trial on Jan. 31, 2017.

The investigation has thus far resulted in 41 guilty pleas – 27 of them from doctors – in connection with the bribery scheme, which its organizers have admitted involved millions of dollars in bribes and resulted in more than $100 million in payments to BLS from Medicare and various private insurance companies. It is believed to be the largest number of medical professionals ever prosecuted in a bribery case.

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

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

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

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

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

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

Defense counsel: Mauro M. Wolfe, Esq., New York, NY

NEWARK, N.J. – A member of the New Jersey branch of the international street gang “La Mara Salvatrucha,” or “MS-13,” was sentenced to life in prison today for his role in the brutal murder of an associate of MS-13 in May 2011, U.S. Attorney Paul J. Fishman announced.

Cruz Flores, a/k/a “Bruja,” 30, of Bound Brook, New Jersey, was previously convicted of Count 18 and Count 19 of an indictment charging him with conspiracy to commit murder in aid of racketeering and murder in aid of racketeering. He was convicted following a 16-week trial before U.S. District Judge Stanley R. Chesler, who imposed the sentence today in Newark federal court.

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

MS-13 is a national and transnational gang with branches or “cliques” operating throughout the United States, including in Plainfield, New Jersey. Flores was a member of the “Plainfield Locos Salvatruchas” (PLS) clique of MS-13 that was founded by Santos Reyes-Villatoro, a/k/a “Mousey,” 43, of Bound Brook, and operated in Union, Somerset, and Middlesex Counties.

On May 8, 2011, Flores murdered a victim who was caught socializing with 18th Street gang members. After the gang’s leadership “green-lit” the murder, Flores and another MS-13 member cut his throat, beat him with a bat and stabbed him in the back 17 times. 

Flores was originally charged in a 26-count indictment returned by a federal grand jury in September 2013. As of today, 13 of the 14 individuals charged in that indictment have been convicted and sentenced. One defendant remains a fugitive.

U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark; Immigration and Customs Enforcement, Enforcement and Removal Operations (ERO), under Newark Field Office Director John Tsoukaris; and Homeland Security Investigations (ICE-HSI), under the direction of Special Agent in Charge Terence S. Opiola, with the investigation. He also thanked the Union County Prosecutor’s Office, under the direction of Acting Prosecutor Grace H. Park, for long, close collaboration on the case.

He also thanked the Somerset County Prosecutor’s Office, under the direction of Acting Prosecutor Michael H. Robertson, and the Middlesex County Prosecutor’s Office, under the direction of Prosecutor Andrew C. Carey, for their roles. He also acknowledged the U.S. Attorney’s Offices for the Eastern District of Virginia and the District of Maryland, as well as the Plainfield Police Department, Union County Police Department, Union County Sheriff’s Office, Elizabeth Police Department, North Plainfield Police Department, Union County Department of Corrections, Prince George’s County, Maryland, Police Department and the U.S. Marshal’s Service for their assistance.

The government is represented by Assistant U.S. Attorneys James M. Donnelly and J. Jamari Buxton of the U.S. Attorney’s Office Criminal Division in Newark and by Kevin L. Rosenberg, former Trial Attorney in the Organized Crime and Gang Section of the Department of Justice.

Defense counsel: David Ruhnke Esq. and Linwood Jones Esq.

NEWARK, N.J. – Two East Orange, New Jersey, men today admitted their roles in a conspiracy to file false federal income tax returns on behalf of inmates at the Essex County Correctional Facility, U.S. Attorney Paul J. Fishman announced.

Reginald Eaford, 46, and Winfred Moses, 48, pleaded guilty before U.S. District Judge William H. Walls in Newark federal court to separate informations charging them each with conspiracy to make and present false, fictitious, and fraudulent claims to the IRS.

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

From 2013 through Aug. 5, 2014, Eaford, Moses, and others conspired to file bogus federal tax returns in order to fraudulently obtain tax refunds.

Eaford was an inmate at the Essex County Correctional Facility from approximately May 20, 2013 through Feb. 12, 2014. As part of the scheme, Eaford, Moses, and others obtained social security numbers, dates of birth, and other information from inmates at the jail. Eaford and Moses would then generate false W-2 forms indicating that the inmates had earned income during the relevant tax year and that federal income tax had been withheld from their paychecks.

Afterwards, Eaford and Moses filed false federal income tax returns on behalf of the inmates and had the refund checks sent to the Essex County Correctional Facility or to Moses’s East Orange residence. The proceeds of the fraud were split among Eaford, Moses, and the relevant inmates. Eaford and Moses admitted that they filed 112 phony tax returns that sought approximately $670,206 in fraudulent refunds.

The conspiracy charge carries a maximum potential sentence of five years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. Sentencing for both defendants is scheduled for March 28, 2017.

U.S. Attorney Fishman credited special agents of IRS–Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen, postal inspectors from the U.S. Postal Inspection Service, under the direction of Inspector in Charge James V. Buthorn, and the Internal Affairs Division of Essex County Jail, under the leadership of Warden Roy Hendricks, with the investigation.

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

Defense counsel:       

Eaford: Assistant Federal Public Defender Lisa Mack Esq., Newark, New Jersey

Moses: Leigh-Anne Mulrey Esq., Morristown, New Jersey

NEWARK, N.J. – A Newton, New Jersey, man was sentenced today to 210 months in prison for planning the kidnapping and murder of a woman he met online, U.S. Attorney Paul J. Fishman announced.

Christopher Thieme, 36, of Sussex County, New Jersey, previously pleaded guilty before U.S. District Judge Susan D. Wigenton to an information charging him with one count of attempted kidnapping and one count of murder-for-hire. Judge Wigenton imposed the sentence today in Newark federal court.

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

Thieme admitted that from December 2015 through Jan. 4, 2016, he sought assistance from an associate to kidnap and ultimately murder a woman whom Thieme had previously met through an online dating service. Thieme’s associate alerted law enforcement to Thieme’s plans and cooperated with the investigation into Thieme’s plot.

In early January, at the direction of law enforcement, Thieme’s associate introduced Thieme to an undercover FBI agent posing as a hitman. Thieme explained to the undercover FBI agent that, once the victim was kidnapped, Thieme would empty the victim’s bank accounts and fraudulently sell off her home, the proceeds of which Thieme planned to use to pay for the kidnapping and murder.

In addition to the prison term, Judge Wigenton sentenced Thieme to three years of supervised release and ordered him to pay restitution of $1,034.

U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, with the investigation leading to today’s sentencing. He also thanked members of the Passaic County Prosecutor’s Office, the New Jersey State Police, the Newton Police Department, the Paramus Police Department, the Paterson Police Department, the Roxbury Police Department, and the Wayne Police Department for their assistance.

The government is represented by Assistant U.S. Attorney Josh Hafetz of the U.S. Attorney’s Organized Crime/Gangs Unit in Newark.

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

The Justice Department announced today that it reached an agreement with Princeton University to resolve a compliance review initiated in May 2014 regarding Princeton’s treatment of students with mental health disabilities and its policies and practices related to requests for reasonable modifications, withdrawals and leaves of absences. 

The agreement details specific steps Princeton will take to strengthen its policies, practices and training to benefit all current and future Princeton students with disabilities.  Under the agreement, Princeton will:

• revise its policies to explicitly describe the types of accommodations students with disabilities may request, including modifications to university policies, rules and regulations; where students may submit each type of accommodation request; and how Princeton will evaluate those requests;
• revise the websites for its Office of Disability Services and its Office of the Dean of Undergraduate Students to direct students to relevant policies and procedures related to requesting reasonable accommodations;  
• revise its leave policy and practices, consistent with regulations implementing Title III of the Americans with Disabilities Act (ADA); and
• provide annual training, including references to updated policies, on Title III of the ADA, with a focus on mental health disability discrimination, to all faculty and staff responsible for evaluating and/or deciding requests from students for reasonable accommodations.

“This agreement reflects the critical role that colleges and universities play in fulfilling the ADA’s promise of equal opportunity, full participation, independent living and economic self-sufficiency,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Civil Rights Division.  “By working directly with students with disabilities to determine appropriate accommodations, colleges and universities can meet their obligations under the ADA.”

“The ADA, which is one of this country's most comprehensive pieces of civil rights legislation, prohibits discrimination and guarantees that people with disabilities have the same opportunities as everyone else to participate in the mainstream of American life,” said U.S. Attorney Paul J. Fishman of the District of New Jersey.  “Through this agreement, students with disabilities move closer to achieving full equality and integration into places of higher education.” 

For more information please visit the department’s website www.ada.gov.  Those interested in finding out more about the ADA may also call the Justice Department’s toll-free ADA information Line at 800-514-0301 or 800-514-0383 (TDD).

The compliance review was conducted jointly by the Civil Rights Division’s Disability Rights Section and the U.S. Attorney’s Office of the District of New Jersey.  Additional information about the Civil Rights Division is available on its website at www.justice.gov/crt.  Additional information about the U.S. Attorney’s Office of the District of New Jersey is available on its website at www.justice.gov/usao/nj.

Princeton University

NEWARK, N.J. – The Justice Department and the U.S. Attorney’s Office, District of New Jersey, announced today that they have reached an agreement with Princeton University to resolve a compliance review initiated in May 2014 regarding Princeton’s treatment of students with mental health disabilities and its policies and practices related to requests for reasonable modifications, withdrawals, and leaves of absences. 

The agreement details specific steps Princeton will take to strengthen its policies, practices, and training to benefit all current and future Princeton students with disabilities.  Under the agreement, Princeton will:

• revise its policies to explicitly describe: the types of accommodations students with disabilities may request, including modifications to University policies, rules, and regulations; where students may submit each type of accommodation request; and how Princeton will evaluate those requests;

   

• revise the websites for its Office of Disability Services and its Office of the Dean of Undergraduate Students to direct students to relevant policies and procedures related to requesting reasonable accommodations; 

   

• revise its leave policy and practices, consistent with regulations implementing Title III of the Americans with Disabilities Act (ADA); and

   

• provide annual training, including references to updated policies, on Title III of the ADA, with a focus on mental health disability discrimination, to all faculty and staff responsible for evaluating and/or deciding requests from students for reasonable accommodations.

 

“The ADA, which is one of this country's most comprehensive pieces of civil rights legislation, prohibits discrimination and guarantees that people with disabilities have the same opportunities as everyone else to participate in the mainstream of American life,” U.S. Attorney Paul J. Fishman, District of New Jersey, said.  “Through this agreement, students with disabilities move closer to achieving full equality and integration into places of higher education.”

“This agreement reflects the critical role that colleges play in fulfilling the promise of the ADA: equality of opportunity, full participation, independent living, and economic self-sufficiency,” Principal Deputy Assistant Attorney General Vanita Gupta, head of the Civil Rights Division, said.  “By working directly with students with disabilities to determine appropriate accommodations, colleges and universities can meet their obligations under the ADA.”

For more information or for a copy of the agreement, please visit the department’s website www.ada.gov.  Those interested in finding out more about the ADA may also call the Justice Department’s toll-free ADA information Line at 800-514-0301 or 800-514-0383 (TDD).

The compliance review was conducted jointly by the Civil Rights Division’s Disability Rights Section and the U.S. Attorney’s Office for the District of New Jersey. Additional information about the Civil Rights Division is available on its websites at www.justice.gov/crt .  Additional information about the U.S. Attorney’s Office/District of New Jersey’s Civil Rights Unit is available on its website at: https://www.justice.gov/usao-nj/civil-rights-enforcement .

The government is represented by Assistant U.S. Attorney Michael E. Campion, chief of the U.S. Attorney’s Office/District of New Jersey’s Civil Rights Unit, and Erin Richmond, trial attorney, U.S. Department of Justice, Civil Rights Division, Disability Rights Section.

NEWARK, N.J. – A Jersey City, New Jersey, man was indicted today on charges that he fraudulently obtained $3.5 million from two investors by falsely representing that his businesses had secured lucrative contracts to sell olive oil to major retailers, U.S. Attorney Paul J. Fishman announced. 

Antonio Fasolino, 60, who was originally charged by complaint with one count of wire fraud in June 2016, is now charged by indictment with three counts of wire fraud and one count of transacting in criminal proceeds. 

According to the indictment:

Fasolino owned several companies that were purportedly involved in the manufacture, sale and distribution of pasta, tomato sauce, olive oil and other food products. In 2012, Fasolino allegedly obtained approximately $3.5 million from two victims by falsely representing that Fasolino’s companies had been awarded lucrative contracts to sell olive oil. In fact, there were never any such contracts, and Fasolino spent the money on himself, including car and mortgage payments, apartment rentals, a wedding, college tuition and credit card payments.

Each count of wire fraud carries a maximum potential penalty of 20 years in prison. The transacting in criminal proceeds count carries a maximum potential penalty of 10 years in prison. Each charge in the indictment is also punishable by a potential $250,000 fine, or twice the gross gain or loss from the offense.

U.S. Attorney Fishman credited special agents of the FBI under the direction of Special Agent in Charge Timothy Gallagher in Newark, with the investigation leading to the charges. He also thanked special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen for their roles in the investigation.

The government is represented by Assistant U.S. Attorney Lakshmi Herman and Deputy Chief Zach Intrater of the U.S. Attorney’s Office’s Economic Crimes Unit, and Assistant U.S. Attorney Sarah Devlin of the Assert Forfeiture and Money Laundering Unit.

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

Defense counsel: Alan Silber Esq., Roseland, New Jersey

NEWARK, N.J. – A U.S. immigration manager for an information technology company today admitted that he obstructed federal investigations as part of a scheme to fraudulently obtain foreign worker visas, U.S. Attorney Paul J. Fishman announced.     

Hari Karne, 32, of Hyderabad, India, pleaded guilty before U.S. District Judge Kevin McNulty in Newark federal court to an information charging him with conspiracy to obstruct justice.

According to the information:

SCM Data Inc. and MMC Systems Inc. offered consultants to clients in need of IT support. Both companies recruited foreign nationals, often student visa holders or recent college graduates, and sponsored them for H-1B visas. The H-1B program allows businesses in the United States to temporarily employ foreign workers with specialized or technical expertise in a particular field, such as accounting, engineering or computer science. The U.S. Department of Homeland Security, U.S. Citizenship and Immigrations Services (USCIS) approves and processes applications for residency within the United States, and the U.S. Department of Labor (USDOL) is responsible for the enforcement of labor regulations, including immigration-related employment standards and worker protections. 

Karne’s conspirators recruited foreign workers with purported IT expertise who sought work in the United States. The conspirators then sponsored the foreign workers’ H-1B visas with the stated purpose of working for SCM Data and MMC Systems’ clients throughout the United States. When submitting the visa paperwork to USCIS, the conspirators represented that the foreign workers had full-time positions and were paid an annual salary, as required to secure the H-1B visas.

Contrary to these representations and in violation of the H-1B program, the conspirators paid the foreign workers only when they were placed at a third-party client who entered into a contract with SCM Data or MMC Systems. The conspirators told the foreign workers who were not currently working that if they wanted to maintain their H-1B visa status, they would need to come up with what their gross wages would be in cash and give it to SCM Data and MMC Systems so the companies could issue payroll checks to the foreign workers.

The conspirators then encouraged the foreign workers to submit the bogus payroll checks to USCIS as proof that the workers were engaged in full-time work despite the fact that they were not working for the companies. Once USDOL launched an audit of SCM Data and MMC Systems, the conspirators fabricated leave or vacation slips to USDOL for the time periods that the foreign workers were not working to conceal the fact that they were not paid during those time periods as required by federal law.

Karne – who was a U.S. immigration manger with SCM Private Limited in India, which had service agreements with SCM Data and MMC Systems – admitted that he advised foreign workers to pay SCM Data and MMC Systems in cash the approximate amount they were supposed to be paid by the companies in order to generate false payroll records.

In or before January 2015, MMC Systems stopped paying a person – referred to in the information as “Individual 1” – on a third-party contract. Karne admitted that on Feb. 20, 2015, he instructed Individual 1 to pay MMC Systems in cash so that MMC Systems could issue a check to Individual 1 and falsely claim that MMC Systems had paid Individual 1 wages in January 2015. On Feb. 20, 2015, Karne explained to Individual 1 the importance of having paystubs and employment status because USCIS would inquire about both. 

Karne further admitted that in February 2015 and March 2015, in response to a USDOL audit, he assisted SCM Data and MMC Systems in the preparation of false leave slips for foreign workers that were submitted to the USDOL to conceal the fact that the foreign workers were not paid during those time periods as required by federal law.

Karne faces a maximum potential penalty of five years in prison and a $250,000 fine.  Sentencing is scheduled for April 3, 2016.    

U.S. Attorney Fishman praised special agents of the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), under the direction of Special Agent in Charge Terence S. Opiola, and the U.S. Department of Labor, Office of Inspector General, under the direction of Special Agent in Charge Michael C. Mikulka, with the investigation leading to today’s plea.

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

Defense Counsel:  Vikas Dhar, Esq.

NEWARK, N.J. – U.S. Attorney Paul J. Fishman announced today that the District of New Jersey collected $89.4 million in criminal and civil actions in Fiscal Year 2016.  Of this amount, $23.1 million was collected in criminal actions and $66.3 million was collected in civil actions. 

The District of New Jersey also worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $672.7 million in cases pursued jointly with these offices.  Of this amount, $317,114 was collected in criminal actions and $672.4 million was collected in civil actions.         

Attorney General Loretta E. Lynch announced Dec. 14, 2016, that the Justice Department collected nearly $15.4 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2016.  The $15,380,130,434 in collections in FY 2016 represents more than five times the appropriated $2.93 billion budget for the 94 U.S. Attorneys’ offices and the main litigating divisions of the Justice Department combined in that same period.

“Every day, the men and women of the Department of Justice work tirelessly to enforce our laws, ensuring that taxpayer dollars are used properly and that the American people are protected from exploitation and abuse,” Attorney General Lynch said.  “Today’s announcement is a testament to that work, and it makes clear that our actions deliver a significant return on public investment.  I want to thank the prosecutors and trial attorneys who made this year's collections possible, and I want to emphasize that the department remains committed to the well-being of our people and our nation.”

“We continue to collect far more in fines, penalties, asset forfeiture, restitution and settlements than we spend in our mission to keep the public safe from violent crime and protect them from financial exploitation,” U.S. Attorney Fishman said. “The money we take in is used to make crime victims whole, provide additional resources to our law enforcement partners and help fund the general treasury.”

During the 2016 fiscal year, significant recoveries in the District of New Jersey included:

• $8.725 million from the sale of a New York condo owned by Garrett Bauer, who was sentenced in June 2012 to 108 months in prison for his role in an insider trading scheme.
• $2.67 million in criminal forfeiture from the owners of two healthcare companies that defrauded Medicaid and Medicare. Paul Mil was sentenced to 54 months in prison and Irina Krutoyarsky to 60 months in prison after pleading guilty to conspiracy to commit healthcare fraud and other crimes.
• $2.3 million in property and funds from various defendants in the Biodiagnostic Laboratory Services LLC case, in which millions of dollars in bribes were paid to physicians over a number of years in exchange for blood sample referrals to the lab.

The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims.  The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss.  While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.

The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws.  In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.

Additionally, the U.S. Attorney’s office in the District of New Jersey, working with partner agencies and divisions, collected $41.8 million in asset forfeiture actions in FY 2016.  Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.

NEWARK, N.J. – An investment manager with an office in Middletown, New Jersey, will appear in federal court today to face charges that he fraudulently concealed investment losses and diverted at least $5.3 million in investor money for his personal use, U.S Attorney Paul J. Fishman announced.

Vincent P. Falci, 57, of Middletown, was charged with two counts of wire fraud and one count of securities fraud. He is scheduled to appear this afternoon before U.S. Magistrate Judge Steven C. Mannion in Newark federal court.

According to the complaint unsealed today:

Falci controlled a number of investment funds under the names “Saber Funds,” and “Vicor Tax Receivables LLP” (the Vicor Fund). In addition to touting his investment skill and experience, Falci concealed losses from investors and falsely told them that his funds were growing year after year. Based on these misrepresentations, investors continued to entrust additional funds to Falci and left previous investments under his control.

The Saber Funds were a collection of investment funds that Falci created and operated, starting in the late 1990s or early 2000s. Falci told investors that the Saber Funds were conservatively invested in securities such as tax liens and that the fund’s investments continued to show positive returns. In reality, Falci redirected investor money to a number of riskier ventures, such as day trading and real estate. Many of these investments lost money, which Falci concealed from the investors.

On Sept. 18, 2015, Falci entered into a consent order with the N.J. Bureau of Securities in which he admitted to violating New Jersey securities laws while operating the Saber Funds. Among other things, Falci admitted to misleading investors and paying himself and family members over $1 million between 2006 and 2009. The order required Falci to pay restitution of $6,742,697.57.

In order to pay the Saber Funds investors the gains he had promised, Falci stole money from the Vicor Fund, which he controlled through his management entity “Vidon Capital Partners LLC” (Vidon). Even after the September 2015 consent order required Falci to divest himself of his controlling interest in all funds and management entities, Falci continued to use his control of the Vicor Fund and Vidon bank accounts to steal money from the Vicor Fund.

Altogether, Falci allegedly stole $5.3 million from the Vicor Fund between January 2015 and May 2016. While most of that money was used to repay prior investors in the Saber Fund, Falci siphoned over $500,000 of investor money to enrich himself and family members.

Each charge in the complaint carries a maximum potential penalty of 10 years in prison and a $250,000 fine.

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

Relatedly, the N.J. Bureau of Securities will today file a motion to enforce the terms of the consent order entered in N.J. Superior Court on Sept. 18, 2015 between the N.J. Bureau of Securities and certain related entities and individuals based on many of the same facts alleged in today’s federal criminal complaint. For information on the motion, contact Lisa Coryell at 973-504-6510.

U.S. Attorney Fishman credited inspectors of U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge James V. Buthorn, with the investigation leading to today’s charges. He also thanked the N.J. Bureau of Securities in the State Attorney General’s Office, under the direction of Attorney General Christopher S. Porrino and Bureau Chief Laura H. Posner, for its assistance in the investigation.

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

Defense counsel: Joseph Sorrentino, Staten Island, New York.

NEWARK, N.J. – Two real estate brokers and a client were arrested today and charged in connection with a scheme to use bogus information and simultaneous loan applications at multiple banks to fraudulently obtain home equity lines of credit, a practice known as “shotgunning,” U.S. Attorney Paul J. Fishman announced.

Simon Curanaj (a/k/a Simone Curanaj, Simon Curanovic, and Simone Curanay) 62, of Yonkers, New York; Michael Arroyo, 58, of Bronx, New York; and Rafael Popoteur, 65, of Ridgefield Park, New Jersey, are charged by complaint with one count each of conspiracy to commit bank fraud. They are expected to appear later today before U.S. Magistrate Judge Steven C. Mannion.

According to the complaint:

Curanaj and Arroyo are real estate brokers and Popoteur was one of Curanaj’s clients. From 2012 through January 2014, the three defendants and others allegedly conspired to fraudulently obtain multiple home equity lines of credit (HELOCs) from banks on multiple residential properties located in New Jersey and New York.

To get the banks to extend lines of credit they would not have otherwise approved, Curanaj and his conspirators allegedly used the names and personal information of homeowners or straw borrowers, sometimes without their knowledge, to apply for the HELOCs. They made various false representations on loan documents. They then applied for several home equity lines of credit with multiple banks at the same time using the same residential property as collateral. They hid from the lenders the fact that the properties offered as collateral were either already subject to senior liens that had not yet been recorded, or that the same property was offered as collateral for a line of credit from another lender.

The two representative HELOC shotgun schemes highlighted in the complaint caused a loss of more than $1 million dollars. After receiving the fraudulently obtained home equity lines of credit, Curanaj and his conspirators shared in the illicit proceeds obtained from the banks. 

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

U.S. Attorney Fishman credited special agents of the U.S. Federal Finance Housing Agency, Office of Inspector General, under the direction of Special Agent in Charge Steven Perez; and special agents of the FBI, under the direction Special Agent in Charge Timothy Gallagher of the Newark office, with the investigation leading to today’s charges.

The government is represented by Assistant U.S. Attorney Jihee G. Suh of the U.S. Attorney’s General Crimes Unit in Newark and Special Assistant U.S. Attorney Kevin DiGregory of the FHFA, Office of the Inspector General.

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

CAMDEN, N.J. – A Toms River, New Jersey, woman was sentenced today to 37 months in prison for filing false tax returns and using her accounting business to cheat her clients out of their tax refunds, U.S. Attorney Paul J. Fishman announced.

Doreen Gentile, 62, previously pleaded guilty before U.S. District Judge Joseph H. Rodriguez to Count 2 and Count 27 of an indictment, charging her with mail fraud and filing a false income tax return. Judge Rodriguez imposed the sentence today in Camden federal court.

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

Gentile owned and operated her accounting business, Doreen A. Gentile & Associates, LLC (DAG & Associates), out of her home in Toms River. Gentile admitted that as part of her scheme, she would show her clients a tax return that indicated that they had no tax or refund due, owed a minimal amount of tax, or were due a refund that was far less than the amount to which they were entitled. Gentile then prepared a second set of tax returns, signed without her clients’ permission, that she submitted to the IRS or the State of New Jersey for the full tax refund.

Based on the second set of returns, the IRS or the State of New Jersey issued tax refund checks care of DAG & Associates and mailed them to the DAG & Associates post office box in Toms River. Gentile then deposited the tax refund checks into the DAG & Associates bank account without her clients’ permission. Afterwards, Gentile used the funds to pay for personal expenses.

Gentile also admitted that from 2006 through 2009, she failed to report to the IRS all of her income generated from DAG & Associates, including funds she stole as part of her refund scheme, resulting in tax losses of approximately $188,811.

In addition to the prison term, Gentile must serve three years of supervised release and pay restitution of $1,863,013.

U.S. Attorney Fishman credited special agents of IRS – Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen, and special agents of the Social Security Administration, Office of Inspector General, under the direction of Special Agent in Charge Edward J. Ryan, the for investigation leading to today’s sentencing.

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

Defense counsel: Christopher O’Malley Esq., Camden

NEWARK, N.J. – Three Newark men were indicted by a federal grand jury today for their alleged roles in an August 2015 home invasion that left one person dead, U.S. Attorney Paul J. Fishman announced.

Aaron Terrell, a/k/a “Push,” 26, Jahad Lemons, a/k/a “JBird,” 26, and Papayaw Mack, a/k/a “GY,” 25, were each charged by indictment with one count of murder during a crime of violence, one count of Hobbs Act robbery conspiracy, one count of Hobbs Act robbery, and one count of using a firearm during a crime of violence.

According to the indictment:

On Aug. 18, 2015, Terrell, Lemons, Mack, and two other individuals – referred to in the indictment as “CC-1” and “CC-2” – allegedly used firearms to rob the apartment of an individual referred to in the indictment as “Victim-1” at a residential building in Newark. They targeted Victim-1 because they believed Victim-1was a heroin trafficker whose residence contained narcotics and related proceeds.

At the residential building, Terrell, Lemons, Mack, CC-1, and CC-2 allegedly surrounded Victim-1, forced him into his apartment, and then proceeded to rob at gunpoint Victim-1 – as well as Victim-2 and Victim-3 who were already inside the apartment – of cash and personal affects. During the course of the robbery, Terrell and CC-2 allegedly discharged their firearms, which killed Victim-1 and seriously wounded Victim-2.

All three men were originally charged by the Essex County Prosecutor’s Office with murder and robbery. On Aug. 26, 2015, Terrell was arrested by the Newark Police Department, while Lemons was arrested in Georgia on October 26, 2015. Mack remains at large. Terrell is also facing separate federal charges in a sixth superseding indictment for his participation in a racketeering conspiracy related to the New Jersey set of the Grape Street Crips, a violent street gang operating in and around Newark.

Each defendant faces a potential sentence of life in prison for the count of murder during a crime of violence. The count of using a firearm during a crime of violence carries a mandatory minimum sentence of 10 years in prison and a potential sentence of life, and that sentence must be consecutive to any other sentence imposed. The Hobbs Act robbery and conspiracy to commit Hobbs Act robbery counts each carry a potential sentence of 20 years in prison. All four counts carry a potential fine of $250,000.

U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, with the investigation leading to the charges. He also thanked prosecutors and detectives of the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Carolyn A. Murray, and police officers and detectives of the Newark Department of Public Safety, under the direction of Director Anthony F. Ambrose, for their assistance.

The government is represented by Assistant U.S. Attorneys Osmar J. Benvenuto and Barry A. Kamar of the Criminal Division in Newark. 

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

Defense counsel:        

Terrell: Michael N. Pedicini Esq.

Lemons: Kathleen M. Theurer Esq.

NEWARK, N.J. – An internal medicine doctor practicing in Staten Island, New York, was charged today with accepting bribes in exchange for test referrals as part of a long-running and elaborate scheme operated by Biodiagnostic Laboratory Services LLC (BLS), of Parsippany, New Jersey, its president and numerous associates, U.S. Attorney Paul J. Fishman announced.

Ahmed El Soury, 44, of Monmouth Junction, New Jersey, was indicted by a federal grand jury in Newark. The indictment charges El Soury with one count of conspiring to commit violations of the Anti-Kickback Statute, the Federal Travel Act and wire fraud; three substantive violations of the Anti-Kickback Statute; three substantive violations of the Federal Travel Act; and three substantive violations of wire fraud. El Soury will be arraigned at a later date. 

According to the indictment:

Between March 2011 and April 2013, El Soury allegedly received cash bribes totaling approximately $65,000 from BLS employees and associates. In February 2012, El Soury solicited and received an increase in his monthly bribe payments for having persuaded another health care provider to refer patient blood samples to BLS.

El Soury’s referrals generated approximately $650,000 in lab business for BLS.

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

El Soury is the third physician to be indicted in connection with the BLS bribery scheme. Brett Ostrager – who was indicted Aug. 11, 2015 and pleaded guilty on Dec. 22, 2015 – was sentenced on June 8, 2016 to 37 months in prison. Bernard Greenspan was indicted on March 14, 2016 and is scheduled for trial on Jan. 31, 2017 before U.S. District Judge William H. Walls.

The investigation has thus far resulted in 41 guilty pleas – 27 of them from doctors – in connection with the bribery scheme, which its organizers have admitted involved millions of dollars in bribes and resulted in more than $100 million in payments to BLS from Medicare and various private insurance companies. It is believed to be the largest number of medical professionals ever prosecuted in a bribery case.

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

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

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

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

Defense counsel: Albert Dayan Esq., Kew Gardens, New York

NEWARK, N.J. – A native of Romania who was arrested in Spain and extradited to the United States was sentenced today to 57 months in prison for his role in a conspiracy to steal bank account information from thousands of customers by installing secret card-reading devices and pinhole cameras on ATMs throughout New Jersey, New York, Connecticut, Florida, and elsewhere, U.S. Attorney Paul J. Fishman announced. 

Robert Mate, a/k/a “Chioru,” a/k/a “Marcel Varga,” 31, previously pleaded guilty before U.S. District Judge William J. Martini in Newark federal court to Count One of an indictment charging him conspiracy to commit bank fraud.   

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

Mate participated as a high-level member of a vast “ATM skimming” scheme that stole bank account information by installing secret card-reading devices on ATMs throughout New Jersey, New York, Connecticut, Florida, and elsewhere. The scheme, which ultimately defrauded Citibank, TD Bank, Wells Fargo, and multiple other financial institutions out of at least $5 million and impacted thousands of customers, was organized by Marius Vintila, 34, also a native of Romania.

Vintila and Bogdan Radu, 34, designed and constructed sophisticated card-reader devices and pinhole camera panels capable of reading and storing customers’ bank account information and personal identification numbers. Mate and others then secretly installed the devices onto bank ATMs and removed them a few days later after they had recorded customer bank account information as customers performed routine bank transactions.

Afterwards, the stolen data was used to create thousands of false and fraudulent ATM cards, which Mate and others used to withdraw millions of dollars from customers’ bank accounts.    

The ATM skimming operation in which Mate participated is one of the largest ever uncovered by law enforcement. To date, 15 of the 16 individuals that have been charged in connection with this scheme, including Mate, Vintila and Radu, have been convicted. Ionut Vasile Ciurba-Stana, a/k/a “Ciorba,” 30, remains at large.

In addition to the prison term, Judge Martini sentenced Mate to five years of supervised release and ordered him to pay restitution of $7,397,270.

U.S. Attorney Fishman credited special agents of the U.S. Secret Service, Newark Field

Office, under the direction of Special Agent in Charge Mark McKevitt, and special agents of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), under the direction of Special Agent in Charge Terence S. Opiola in Newark, with the investigation leading to today’s sentencing. 

The government is represented by Assistant U.S. Attorneys Rahul Agarwal and David M. Eskew of the office’s Criminal Division. 

Defense Counsel: Angelo Servidio Esq., Nutley, New Jersey

Plea Calls for Prison Sentence of 10 to 12 years

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

Rajohn Wilson, a/k/a “1090,” 25, of Newark, New Jersey, pleaded guilty before U.S. District Judge Susan D. Wigenton in Newark federal court to Count Two of a 14-count superseding indictment charging him with racketeering conspiracy.

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

The Bloods street gang is organized into subgroups that operate in specific geographic locations. Sex Money Murder is the subgroup that operates primarily in Essex County, New Jersey.

Rajohn Wilson, who served as a “five-star general” of Sex Money Murder, admitted that from 2007 to 2011 he committed a series of violent crimes to advance the gang’s objectives.  He is a younger brother of Narik Wilson, a/k/a “Spaz,” the leader or “O.G.” of the gang.  Rajohn Wilson admitted that he conspired with members of Sex Money Murder on Feb. 4, 2007, and Feb. 16, 2007, to murder rival gang members, and that he and others carried out drive-by shootings of two victims in and around Newark. Wilson also admitted conspiring to distribute more than one kilogram of heroin.

The plea agreement requires Wilson to be sentenced to 10 to 12 years in prison, minus time served in jail on a related case, and five years of supervised release. Sentencing is scheduled for March 23, 2017.

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

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

Defense counsel:

Wilson: Howard Brownstein Esq., Union City, New Jersey

Manipulated $10 Billion Worth of Securities in Tens of Thousands of Transactions

NEWARK, N.J. – Two New Jersey-based securities traders were arrested today and charged with orchestrating a massive, long-running market manipulation scheme that netted them more than $26 million in illegal profits between 2014 and 2015, U.S. Attorney Paul J. Fishman announced.

Joseph Taub, 37, of Clifton, New Jersey, and Elazar Shmalo, 21, of Passaic, New Jersey, were each charged by complaint with one count of conspiracy to commit securities fraud. They are scheduled to appear later today before U.S. Magistrate Judge Steven C. Mannion in Newark federal court.

“As outlined in today’s complaint, Taub, Shmalo and others engaged in a scheme to place numerous buy and sell orders for specifically targeted, lightly traded securities in a coordinated fashion that allowed them to manipulate the price to their advantage,” U.S. Attorney Fishman said. “Over a period of years, they manipulated $10 billion worth of securities in this way, pocketing $26 million in illicit profits at the expense of other investors. The charges we filed today are part of our continuing effort to hold accountable those who would try to illegally tilt the playing field in their own favor.”

“The FBI is diligent in ensuring that anyone intent on corrupting the free market will be brought to justice,” Special Agent in Charge Timothy Gallagher of the FBI’s Newark Division said. “This type of behavior cheats the average investor and has a terrible impact on the securities industry.”

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

From December 2013 to December 2016, Taub, Shmalo, and other conspirators allegedly orchestrated a sophisticated scheme to manipulate the prices of securities of numerous public companies by coordinating trading in dozens of brokerage accounts that the conspirators controlled. The defendants and their conspirators looked for companies whose securities had low trading volumes because it was easier to manipulate their prices. In this way, they injected false information into the market about the supply and demand of these securities, artificially inflating their prices. They then profited by selling at the artificially inflated prices the shares they had accumulated at lower prices.

In 2014 and 2015 alone, Taub, Shmalo and their conspirators engaged in more than 23,000 instances of manipulative trading, buying and selling $10 billion worth of securities and making more than $26 million in illegal profits.

The defendants and their conspirators relied on pre-arranged and coordinated trading among dozens of brokerage accounts they controlled. These accounts were held in the conspirators’ own names, the names of their family members, and the names of entities the conspirators controlled. Many of the accounts were opened in the names of individuals who neither controlled the accounts nor traded the securities held in the accounts (straw account holders). Taub funded many of the accounts that were not in his name and used the straw account holders to conceal the scheme from regulators and law enforcement.

The manipulative trading generally involved two or more trading accounts that bought and sold the same lightly traded stock on the same day during the same period of time. At least one account was primarily used to place multiple smaller orders to create upward or downward price pressure (the “helper account”) and at least one other account was primarily used to buy and sell larger quantities of stock (the “winner account”).  The winner accounts profited by buying and selling at prices affected by the manipulative orders in the helper accounts. The helper and winner accounts were almost always held at different brokerage firms. The helper accounts frequently broke even or lost money, but in conjunction with the winner accounts, the conspirators profited overall.

The trading manipulations usually lasted just a few minutes each, during which time the conspirators sometimes controlled at least 80 percent of the volume of a targeted stock and traded in several accounts simultaneously. Most of the coordinated trading events involved dozens of orders and the purchase and sale of thousands of shares of targeted stocks. The defendants and their conspirators generated a net profit from these events more than 80 percent of the time.

The count of conspiracy to commit securities fraud with which the defendants are charged carries a maximum potential penalty of five years in prison and a fine the greater of $250,000 or twice the gain derived from the offense or twice the loss caused by the offense.   

The U.S. Attorney’s Office is also planning to file a separate civil action seeking forfeiture of brokerage accounts in which the manipulative trades were executed, bank and brokerage accounts funded with proceeds of the scheme, and Taub’s interest in companies in which he invested the proceeds of the scheme. Civil forfeiture cases are “in rem” proceedings –  proceedings against things. The forfeiture claims in this case are based on allegations that the forfeitable property is proceeds of the securities fraud scheme or is property involved in laundering the proceeds of the scheme.

In a separate civil action, the Securities and Exchange commission today filed a complaint in Newark federal court charging Taub and Shmalo with violating and aiding and abetting violations of the antifraud provisions of the securities laws. The complaint seeks a permanent injunction as well as the return of ill-gotten gains plus interest and penalties.

U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Gallagher, with the investigation which led to today=s charges. He also thanked special agents of IRS-Criminal Investigations, the SEC and investigators from the U.S. Attorney’s Office – District of New Jersey, for their roles in the investigation. 

The government is represented by Assistant U.S. Attorneys Daniel Shapiro and Zach Intrater of the U.S. Attorney’s Office Economic Crimes Unit in Newark; and Assistant U.S. Attorneys Sarah Devlin and Barbara Ward, Acting Chief of the office’s Asset Forfeiture and Money Laundering Unit.

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

TRENTON, N.J. – Federal and local law enforcement authorities today arrested multiple members and suppliers of a drug trafficking organization that allegedly distributed hundreds of grams of heroin in Trenton and the surrounding areas, U.S. Attorney Paul J. Fishman announced.

The alleged leader of the conspiracy, Ishmael Abdullah, a/k/a “Ish,” a/k/a “Gangsta,” a/k/a “Papi,” 26, of Trenton, was among 10 defendants charged in a complaint unsealed today, six of whom were arrested this morning as part of a coordinated takedown by federal and local law enforcement authorities. Of the remaining four defendants, two are currently incarcerated on pending state charges and parole violations and two remain at large.

Each defendant (see attached chart) is charged with one count of conspiracy to distribute 100 grams or more of heroin. Ishmael Abdullah and Christopher Proctor, a/k/a “Bris,” a/k/a “Bris Broctor,” 22, of Trenton, are also charged with unlawful possession of a firearm by a convicted felon. Those arrested today are scheduled to appear this afternoon before U.S. Magistrate Judge Douglas E. Arpert in Trenton federal court.

“According to the charges, the defendants sold large quantities of heroin out of a residential neighborhood in Trenton, all while keeping firearms on hand to further their drug-trafficking activities,” U.S. Attorney Fishman said. “Today’s arrests, which include the group’s alleged leader, are part of a coordinated effort by federal and local law enforcement to curb the proliferation of heroin in our communities and the senseless violence that it brings.”

“Today, FBI Newark and our law enforcement partners executed ten federal arrest warrants and conducted several searches in the greater Trenton area. These arrests highlight our commitment to combating the opiate and heroin epidemic that affects each and every one of our communities,” stated Timothy Gallagher, Special Agent in Charge of the Newark FBI Field Office.

According to the complaint:

From June 2015 through December 2016, Ishmael Abdullah, Hunter, and other members of their drug trafficking organization (the “Abdullah DTO”) engaged in a heroin distribution conspiracy that operated in the area of Spring and Passaic Streets in Trenton.

Through the authorized interception of telephone calls and text messages, controlled purchases of heroin, the use of confidential sources of information, and other investigative means, law enforcement learned that Ishmael Abdullah was a leader of the conspiracy and was responsible for obtaining significant quantities of heroin from multiple suppliers, including Torres-Mezquita and Sanchez. Ishmael Abdullah and Hunter coordinated the organization’s distribution of heroin to the other conspirators, who sold and stored the drugs.

Members of the Abdullah DTO spoke in code and used stash houses, cars, and temporary prepaid phones to avoid detection by law enforcement. In connection with their narcotics distribution, members of the Abdullah DTO also maintained joint access to firearms.

Members of the Abdullah DTO sold prepackaged “bricks” of heroin, which contained approximately one gram, and “bundles” of heroin, which contained approximately one-fifth of a gram, to various other distributors, sub-dealers, and end users in Trenton and surrounding areas. Discussions about drug quality, consumer satisfaction, pricing, quantity, and the nature of the organization’s drug distribution business, including the storage and accessibility of firearms, were captured on calls and text messages intercepted during the investigation.

“Today's arrests affirm ATF's commitment to protect the public by reducing violent crime in our neighborhoods,” said Special Agent in Charge George P. Belsky, Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), Newark Field Division. “Investigating, arresting, and prosecuting armed narcotics traffickers remains a top priority for ATF. We will continue to work diligently with our local, state and federal partners to focus our efforts on targeting violent offenders wreaking havoc in our streets.”

Trenton Police Director Ernest Parrey, Jr. stated, “On behalf of the City of Trenton and the Trenton Police Department, I would like to thank all of our law enforcement partners who dedicated their resources in an effort to improve the quality of life for the citizens of our city. This joint investigation and the arrests of these individuals, who plagued city neighborhoods to further their drug trafficking network, is not only a win for law enforcement but a victory for the citizens of this city who have had to live under those brutal conditions.”

The conspiracy charge carries a mandatory minimum penalty of five years in prison, a maximum potential penalty of 40 years in prison, and a $5 million fine. The firearms charges with which Ishmael Abdullah and Christopher Proctor are charged carry a maximum potential penalty of 10 years in prison and a $250,000 fine.

U.S. Attorney Fishman credited agents and officers with the Greater Trenton Safe Streets Task Force, including special agents of the FBI, under the direction of Special Agent in Charge Gallagher; special agents of the ATF, Newark Field Division, under the direction of Special Agent in Charge Belsky; officers of the Trenton Police Department, under the direction of Director Ernest Parrey, Jr.; officers of the Princeton Police Department, under the direction of Chief of Police Nicholas Sutter; officers of the Ewing Police Department, under the direction of Chief of Police John P. Stemler III; and detectives of the Mercer County Prosecutor’s Office, under the direction of Mercer County Prosecutor Angelo J. Onofri, with the investigation.

He also thanked special agents of the FBI’s Philadelphia Field Office, under the direction of Special Agent in Charge Michael Harpster; special agents of Homeland Security Investigations, under the direction of Special Agent in Charge Terence S. Opiola; officers of the New Jersey State Police, under the direction of Superintendent Col. Joseph R. Fuentes; and officers of the Mercer County Sheriff’s Office, under the direction of Sheriff John A. Kemler, for their assistance in the case.

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

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

 

Defendant

Age

Residence

Ishmael Abdullah, a/k/a “Ish,” a/k/a “Gangsta,” a/k/a “Papi”

 

26

Trenton

**Keith Hunter, a/k/a “Meech”

 

24

Trenton

Jose Joaquin Torres-Mezquita, a/k/a “Alex Torres,” a/k/a “Papi,” a/k/a “Pa,” a/k/a “Pop”

 

30

Philadelphia

Bernadino Guervil, a/k/a “BG”

 

28

Trenton

**Elijah Abdullah, a/k/a “Uncle E,” a/k/a “E”

 

21

Trenton

Prince Sarnoe

 

29

Trenton

*Thomas Rogers, a/k/a “Herb,” a/k/a “T-Rod’

 

22

Trenton

*Christopher Proctor, a/k/a “Bris,” a/k/a “Bris Broctor”

 

22

Trenton

Ileana Sanchez, a/k/a “Lilly”

 

32

Trenton

India Daniels

 

23

Morrisville, Pennsylvania

* currently incarcerated

** still at large

NEWARK, N.J. – A Sayreville, New Jersey, man was sentenced today to 63 months in prison for his role in a conspiracy to import heroin from India into the United States, U.S. Attorney Paul J. Fishman announced.

Adolphus Nwokedi, 48, was previously convicted on an indictment charging him with one count of conspiring with others to import 100 grams or more of heroin. He was convicted following a three-day trial before U.S. District Judge Esther Salas, who imposed the sentence today in Newark federal court.

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

From Oct. 2013 through Dec. 2013, Nwokedi conspired with an individual in India to ship a parcel containing heroin into the United States. In return for $3,000, Nwokedi agreed to accept the package at his business address in Newark and then deliver it to another conspirator living in Bronx, New York. On Dec. 11, 2013, customs officers at the John F. Kennedy International Airport mail facility intercepted the parcel and found 524 grams of heroin. On Jan. 2, 2014, agents with Homeland Security Investigations conducted a controlled delivery of the parcel. Nwokedi personally accepted the parcel in Newark and was subsequently arrested.

In addition to the prison term, Judge Salas sentenced Nwokedi to four years of supervised release.

U.S. Attorney Fishman credited special agents of Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Newark Division, under the direction of Special Agent in Charge Terence S. Opiola, with the investigation leading to today’s sentencing.

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

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

NEWARK, N.J. – A member of the DeCavalcante Family of La Cosa Nostra today admitted using a telephone to plan the murder of an organized crime rival, U.S. Attorney Paul J. Fishman announced.

Charles Stango, 72, of Henderson, Nevada, pleaded guilty before U.S. District Judge William H. Walls in Newark federal court to an information charging him with one count of knowingly using an interstate facility – the telephone – with the intent to murder a rival. He also pleaded guilty to violating the terms of his supervised release, which he was serving following his imprisonment on racketeering charges in New York.

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

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

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

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

The count to which Stango pleaded guilty carries a maximum potential penalty of 10 years in prison and a fine of $250,000 Sentencing is scheduled for March 28, 2017.

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

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

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

NEWARK, N.J. – An Essex County, New Jersey, man was sentenced today to 60 months in prison for his role in a conspiracy to illegally obtain and distribute oxycodone in New Jersey, U.S. Attorney Paul J. Fishman announced.

Matthew Policarpio, 29, of Newark, New Jersey, previously pleaded guilty before U.S. District Judge Esther Salas to an indictment charging him with conspiracy to distribute oxycodone. Judge Salas imposed the sentence today in Newark federal court. His federal prison term will be served consecutively to his five-year state prison term for car theft.

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

Using confidential sources, physical surveillance, and recorded text messages and telephone calls, investigators with the Drug Enforcement Administration (DEA) discovered that members and suppliers of a drug trafficking organization secured prescriptions for oxycodone and other controlled substances from various doctors in New Jersey, filled them at pharmacies in Belleville and elsewhere, and sold the drugs for a profit. The investigation identified Policarpio as a member of the drug trafficking organization.

Policarpio admitted that from Feb. 5, 2014, to Aug. 13, 2014, he personally purchased pills containing oxycodone from conspirators and then sold the pills to others. He admitted that in one instance, he arranged to buy 180 pills containing oxycodone from conspirators on June 12, 2014.  He traveled to a pharmacy in East Orange, New Jersey, with conspirators and gave them $450, which they used to purchase 180 Endocet pills from the pharmacy. The pills were then provided to Policarpio, who resold them.

Oxycodone is a Schedule II controlled substance – meaning that it has a high potential for abuse, has a currently accepted medical use with severe restrictions, and abuse of the drug may lead to severe psychological or physical dependence. The Endocet pills obtained and re-sold by Policarpio each contained 10 milligrams of oxycodone.

In addition to the prison term, Judge Salas sentenced Policarpio to three years of supervised release. His federal prison term will be served consecutively to the five-year state prison term he is now serving for car theft.

U.S. Attorney Fishman credited the DEA’s New Jersey Division, under the direction of Special Agent in Charge Carl J. Kotowski, with the investigation leading to today’s sentencing.

The government is represented by Assistant U.S. Attorney Sara F. Merin of the OCDETF/Narcotics Unit of the U.S. Attorney’s Office in Newark.  This case was conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF).  The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.

Defense counsel: Jef Henninger Esq., Tinton Falls, N.J

NEWARK, N.J. – Seven members of the New Jersey branch of the international street gang “La Mara Salvatrucha,” (MS-13) have been sentenced to prison for their roles in a violent criminal enterprise that included murder, extortion, and plots to kill witnesses, U.S. Attorney Paul J. Fishman and Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division announced today.

Franklin Mejia, a/k/a “Frankbo,” 25, and his brother, Kelvin Mejia, a/k/a “Machete,” 24, both of Plainfield, were each sentenced today to 150 months in prison. Ruben Portillo-Fuentes, a/k/a “Sombra,” 24, of Plainfield, of Plainfield, was sentenced today to 121 months in prison, and Julio Adalberto Orellana-Carranza, a/k/a “Player,” 28, also of Plainfield, was sentenced today to 72 months in prison. Jose Romero-Aguirre, a/k/a “Conejo,” 29, of North Plainfield, New Jersey, was sentenced today to 66 months in prison.

Franklin Mejia, Kelvin Mejia, Portillo-Fuentes, and Orellana-Carranza each previously pleaded guilty before U.S. District Judge Stanley R. Chesler to racketeering conspiracy.  Romero-Aguirre previously pleaded guilty to conspiracy to commit murder in aid of racketeering.

Roberto Contreras, a/k/a “Demonio,” 28, of Bound Brook, New Jersey, was sentenced on Dec. 1, 2016, to 180 months in prison. Jose Garcia, a/k/a “Chucky,” 24, of Plainfield, was sentenced on Dec. 5, 2016, to 240 months in prison.

Contreras and Garcia were two of eight defendants convicted following a 16-week trial before Judge Chesler. Contreras was convicted of racketeering conspiracy and accessory after the fact to murder in aid of racketeering. Garcia was convicted of racketeering conspiracy, murder-for-hire conspiracy, travel in interstate commerce with intent to commit murder, and two counts of conspiracy to commit murder in aid of racketeering.

Judge Chesler imposed all the sentences in Newark federal court.

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

MS-13 is a national and transnational gang with branches, or “cliques,” operating throughout the United States, including in Plainfield. All of the defendants were members of the “Plainfield Locos Salvatruchas” (PLS) clique of MS-13. From 2007 through 2011, MS-13 members from PLS committed five murders in furtherance of MS-13’s objectives, as well as numerous other violent crimes, including extortion, robbery and several weapons offenses.

In late-2010 into early-2011, Garcia arranged for MS-13 members from Maryland to come up to Plainfield to kill a woman in exchange for money. Garcia agreed to split the $40,000 murder-for-hire proceeds with the Maryland gang members. On Jan. 10, 2011, four Maryland MS-13 members drove to Plainfield to carry out the hit. They were arrested shortly before they were to meet Garcia.

On Jan. 10, 2011, Contreras and other MS-13 members were in a car when they spotted a suspected 18th Street gang member in front of a restaurant. Contreras stopped the vehicle and an MS-13 member exited, approached the suspected rival gang member and shot him in the head.

On May 7, 2011, Portillo-Fuentes approached an individual sitting outside a residence in Plainfield. Seeking to intimidate the individual and establish MS-13’s control over the area, Portillo-Fuentes fired a handgun at the individual, striking him the chest. The victim survived.

On May 8, 2011, Garcia and another MS-13 member assaulted a suspected member of the 18 Street gang at a park in Plainfield. During the assault, Garcia placed a gun to the victim's head and threatened to kill the victim.

On June 11, 2011, Orellana-Carranza sought to complete a “mission” to kill a rival gang member that had been assigned by PLS's leadership. Garcia assisted Orellana-Carranza by arranging for Kelvin Mejia to supply Orellana-Carranza with a handgun. After retrieving the weapon, Orellana-Carranza went out in search of an 18th Street gang member to kill, but was unsuccessful.

On June 15, 2011, Portillo-Fuentes attacked a member of the 18th Street gang with a machete on a busy street in Plainfield. After spotting the rival, Portillo-Fuentes jumped out of a vehicle and swung a machete at the individual’s head and neck areas. The victim sustained a large, deep gash.

Later that evening, Kelvin Mejia, Franklin Mejia, and a PLS associate robbed two individuals in the same park where Garcia had placed a gun to another victim’s head in May 2011. Franklin Mejia was armed with a handgun; the other two individuals carried handguns. The PLS members ordered the victims to the ground and robbed them of cell phones and ecstasy pills. During the robbery, Franklin Mejia fired a shot near one of the victims’ head. The bullet missed the victim’s head but grazed the individual’s hand. The victims were then ordered to leave the park.

On June 24, 2011, Garcia, Kelvin Mejia, Franklin Mejia, and others plotted to rob an elderly woman who ran an underground liquor store at her residence in Plainfield. That evening, a PLS member went to the woman’s home to rob her. He fired a single shot through the woman’s window when she refused to let him enter the residence, and then fled. Later, in July 2011, Garcia and Kelvin Mejia again plotted to rob the woman to raise bail money for PLS members who had been arrested.

On June 4, 2011, Franklin Mejia and another gang member attacked a PLS associate with a machete on the train tracks in Plainfield because they believed the victim had been associating with a rival gang. The victim survived. On July 2, 2011, Franklin Mejia and Kelvin Mejia sought to obtain a firearm so that Franklin Mejia could kill an older PLS member who was protecting the machete attack victim. Law enforcement officers thwarted the plot.

Kelvin Mejia and Franklin Mejia also distributed cocaine together. Through wiretaps and lawfully intercepted recordings, law enforcement officers intercepted conversations in which Kelvin Mejia and Franklin Mejia arranged drug deals. On July 2, 2011, law enforcement officers searched the Mejias’ residence in Plainfield and seized a small quantity of cocaine.

Law enforcement officers arrested numerous members of PLS in early July 2011. From the Union County Jail, some of the jailed PLS members, including Garcia, Orellana-Carranza and the Mejia brothers, plotted to kill at least three individuals they believed had cooperated with the authorities. To carry out the plot, the jailed PLS members enlisted Romero-Aguirre, who was still free at the time. Romero-Aguirre subsequently instructed PLS members outside the jail to kill the suspected cooperators. Law enforcement officers discovered the plan and intervened before anyone was harmed.

The defendants were originally charged in a 26-count indictment returned by a federal grand jury in September 2013. As of today, 13 of the 14 individuals charged in that indictment have been convicted. One defendant remains a fugitive. Flores is awaiting sentencing.

U.S. Attorney Fishman and Assistant Attorney General Caldwell credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark; Immigration and Customs Enforcement, Enforcement and Removal Operations (ERO), under Newark Field Office Director John Tsoukaris; and Homeland Security Investigations (ICE-HSI), under the direction of Special Agent in Charge Terence S. Opiola, with the investigation. They also thanked the Union County Prosecutor’s Office, under the direction of Acting Prosecutor Grace H. Park, for its collaboration on the case.

They also thanked the Somerset County Prosecutor’s Office, under the direction of Acting Prosecutor Michael H. Robertson, and the Middlesex County Prosecutor’s Office, under the direction of Prosecutor Andrew C. Carey, for their roles. They also acknowledged the U.S. Attorney’s Offices for the Eastern District of Virginia and the District of Maryland, as well as the Plainfield Police Department, Union County Police Department, Union County Sheriff’s Office, Elizabeth Police Department, North Plainfield Police Department, Union County Department of Corrections, Prince George’s County, Maryland, Police Department and the U.S. Marshal’s Service for their assistance.

 The government is represented by Assistant U.S. Attorneys James M. Donnelly and      J. Jamari Buxton of the U.S. Attorney’s Office Criminal Division in Newark and by Kevin L. Rosenberg, of the Organized Crime and Gangs Section of the Department of Justice.

Defense counsel:

Reyes-Villatoro: Anthony Iacullo Esq. and David Glazer Esq.

Oliva: Henry Klingeman Esq. and Kenneth Kayser Esq.

Moz-Aguilar: John Whipple Esq.

Palencia: Joseph Rubino Esq. and Kelley Sharkey Esq.

Ramirez: Michael Koribanics Esq.

Seven members of the New Jersey branch of the international street gang La Mara Salvatrucha, or MS-13, have been sentenced to prison for their roles in a violent criminal enterprise that included murder, extortion and plots to kill witnesses, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Paul J. Fishman of the District of New Jersey.

Franklin Mejia, aka Frankbo, 25, and his brother, Kelvin Mejia, aka Machete, 24, both of Plainfield, New Jersey, were each sentenced today to 150 months in prison.  Ruben Portillo-Fuentes, aka Sombra, 24, of Plainfield, was sentenced today to 121 months in prison; Julio Adalberto Orellana-Carranza, aka Player, 28, also of Plainfield, was sentenced today to 72 months in prison; and Jose Romero-Aguirre, aka Conejo, 29, of North Plainfield, New Jersey, was sentenced today to 66 months in prison.  Franklin Mejia, Kelvin Mejia, Portillo-Fuentes and Orellana-Carranza each previously pleaded guilty before U.S. District Judge Stanley R. Chesler of the District of New Jersey to racketeering conspiracy.  Romero-Aguirre previously pleaded guilty to conspiracy to commit murder in aid of racketeering. 

Two other co-defendants were previously sentenced.  Roberto Contreras, aka Demonio, 28, of Bound Brook, New Jersey, was sentenced on Dec. 1, 2016, to 180 months in prison.  Jose Garcia, aka Chucky, 24, of Plainfield, was sentenced on Dec. 5, 2016, to 240 months in prison.  Contreras and Garcia were convicted following trial before Judge Chesler.  Contreras was convicted of racketeering conspiracy and accessory after the fact to murder in aid of racketeering.  Garcia was convicted of racketeering conspiracy, murder-for-hire conspiracy, travel in interstate commerce with intent to commit murder and two counts of conspiracy to commit murder in aid of racketeering.

According to the plea agreements and evidence presented at trial, MS-13 is a national and transnational gang with branches or “cliques” operating throughout the United States, including in Plainfield.  All of the defendants were members of the Plainfield Locos Salvatruchas (PLS) Clique of MS-13 that operated in Union, Somerset and Middlesex Counties in New Jersey.  Santos Reyes-Villatoro, aka Mousey, founder of the gang, and Mario Oliva, aka Zorro, both of Bound Brook, New Jersey, and Contreras all served as “First Word,” or leader, of PLS.  From 2007 through 2011, MS-13 members from PLS committed five murders in furtherance of MS-13’s objectives, along with other attempted murders and violent attacks, including the following.

According to evidence presented at trial and to admissions made in connection with plea agreements, on Feb. 27, 2010, Oliva drove a female member of MS-13 to an empty parking lot in Piscataway, New Jersey, and murdered her because she was suspected of working with law enforcement.  Oliva then fled New Jersey with the assistance of Contreras and hid from law enforcement with the MS-13 Pinos Clique in Oxon Hill, Maryland.  

On Jan. 10, 2011, four Maryland MS-13 members drove to Plainfield and were arrested shortly before meeting with Garcia to carry out a murder-for-hire they had arranged with him.  Also on Jan. 10, 2011, Contreras and other MS-13 members were in a car when they spotted a suspected 18th Street gang member in front of a restaurant.  Contreras stopped the vehicle and an MS-13 member exited, approached the suspected rival gang member and shot him in the head.  

On May 7, 2011, Portillo-Fuentes approached an individual sitting outside a residence in Plainfield and fired a handgun at the individual, striking him the chest, in order to intimidate the victim and establish MS-13’s control of the area.  The victim survived.  On May 8, 2011, Garcia and another MS-13 member assaulted a suspected member of the 18th Street gang at a park in Plainfield.  During the assault, Garcia placed a gun to the victim's head and threatened to kill the victim.  

In addition, Orellana-Carranza was assigned a “mission” to kill a rival gang member by PLS’s leadership.  Garcia assisted Orellana-Carranza by arranging for Kelvin Mejia to supply Orellana-Carranza with a handgun.  After retrieving the weapon, on June 11, 2011, Orellana-Carranza went out in search of an 18th Street gang member to kill, but was ultimately unsuccessful.  

Also according to admissions and trial evidence, on June 15, 2011, Portillo-Fuentes spotted a member of the 18th Street gang on a busy street in Plainfield, jumped out of a vehicle and swung a machete at the individual’s head and neck areas.  Later that evening, Kelvin Mejia, Franklin Mejia and a PLS associate robbed two individuals in a park, while all three were armed with guns.  During the robbery, Franklin Mejia fired a shot near one victim’s head, missing the victim’s head but grazing their hand.

The plea agreements and trial evidence established that on June 24, 2011, Garcia, Kelvin Mejia, Franklin Mejia and others plotted to rob an elderly woman who ran an underground liquor store at her residence in Plainfield.  That evening, a PLS member fired a single shot through the woman’s window when she refused to let him enter the residence, and then fled.  In July 2011, Garcia and Kelvin Mejia again plotted to rob the woman to raise bail money for PLS members who had been arrested.

According to admissions and evidence presented at trial, on June 4, 2011, Franklin Mejia and another PLS member attacked a PLS associate with a machete on the train tracks in Plainfield because they believed the victim had been associating with a rival gang.  The victim survived.  On July 2, 2011, Franklin Mejia and Kelvin Mejia sought to obtain a firearm so that Franklin Mejia could kill an older PLS member who was protecting the machete attack victim.  Law enforcement officers thwarted the plot.

Evidence at trial demonstrated that in July 2011, numerous PLS members were in custody at the Union County Jail, during which time Garcia and Esau Ramirez, aka Panda, along with other jailed members, plotted to kill at least three individuals they believed had cooperated with the authorities.  On Aug. 1, 2011, Ramirez instructed Romero-Aguirre, who was free at the time, to “work as fast as possible” in eliminating the suspected cooperators.  Romero-Aguirre subsequently instructed PLS members outside the jail to kill the suspected cooperators.  Law enforcement officers discovered the plan and intervened before anyone was harmed.

According to evidence presented at trial, PLS members were also responsible for at least two attempted murders of suspected Latin King members and machete attacks in May 2011 and June 2011 on the train tracks passing through Plainfield.

To date, 13 of the 14 individuals charged in this case have been convicted.  One defendant remains a fugitive.  One defendant, Cruz Flores, aka Bruja, awaits sentencing.

The FBI’s Newark Division; U.S. Immigration and Customs Enforcement’s (ICE) Enforcement and Removal Operations; and ICE Homeland Security Investigations investigated the case.  The Union County Prosecutor’s Office assisted in the investigation.  The Somerset County, New Jersey, Prosecutor’s Office ; the Middlesex County, New Jersey, Prosecutor’s Office; the U.S. Attorney’s Offices for the Eastern District of Virginia and the District of Maryland; the Plainfield Police Department; Union County Police Department; Union County Sheriff’s Office; Elizabeth, New Jersey, Police Department; North Plainfield Police Department; Union County Department of Corrections; Prince George’s County, Maryland, Police Department; and the U.S. Marshals Service also provided assistance.  Former Trial Attorney Kevin L. Rosenberg of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys James M. Donnelly and J. Jamari Buxton of the District of New Jersey are prosecuting the case. 

NEWARK, N.J. – A Morris County, New Jersey, man and his diagnostic testing company are being sued by the government for knowingly submitting false claims to Medicare for thousands of diagnostic testing services he did not render, U.S. Attorney Paul J. Fishman announced today.

Vijay Patel, 59, of Parsippany, New Jersey, owner and operator of Mobile Diagnostic Testing of NJ LLC of Parsippany, New Jersey, pleaded guilty Dec.15, 2014, to a criminal information charging him with health care fraud related to this conduct. Today’s civil complaint alleges Vijay Patel violated the False Claims Act.

According to the complaint:

Patel had an associate who was a cardiologist and also a participant in the Medicare program. From around 2009 through 2012, the cardiologist’s Medicare contractor had placed him on so-called “pre-payment review,” which was initiated to ensure that the doctor was submitting claims within established rules and regulations, and which required him to submit documentation, including medical records, to support the services being billed to Medicare. Under pre-payment review, claims for reimbursement that did not have the documentation necessary to support the services being billed are rejected by the Medicare contractor.

From August 2011 through December 2012, Patel and the cardiologist defrauded Medicare by submitting claims to Medicare for diagnostic testing services that the doctor had performed in December 2010 through September 2012, enabling him to evade Medicare’s pre-payment review. Patel submitted the cardiologist’s claims through his company and his brother’s company, Biosound Medical Services Inc. (Biosound), as if Mobile Diagnostic and Biosound had performed the services instead of the doctor. Once Patel received the Medicare reimbursement money paid to the two companies for diagnostic testing services the cardiologist had performed, Patel transferred a portion of the payment to the doctor and kept a substantial portion for himself.  

U.S. Attorney Fishman credited special agents of the U.S. Department of Health and Human Services – Office of the Inspector General, under the direction of Special Agent in Charge Scott J. Lampert, New York Region, with the investigation leading to the filing of today’s complaint.

The government is represented by Assistant U.S. Attorneys Nicole F. Mastropieri and Bernard J. Cooney of the U.S. Attorney’s Office Health Care and Government Fraud Unit in Newark.

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

The case is captioned United States v. Vijay Patel, et al. (D.N.J.).

NEWARK, N.J. – A New Brunswick, New Jersey, man appeared in federal court today to face racketeering and other charges in connection with multiple brothels that employed illegal aliens throughout New Jersey, U.S. Attorney Paul J. Fishman announced.

Wilmer Chavez Romero, a/k/a “Charmin,” 27, is charged by indictment with one count each of racketeering, racketeering conspiracy, assault with a dangerous weapon in aid of racketeering, and conspiracy to harbor aliens resulting in death; two counts of using a firearm for a violent crime; and two counts of murder in aid of racketeering. He was arraigned today before U.S. District Judge William H. Walls in Newark federal court. Trial is scheduled for Jan. 3, 2017.

According to the indictment:

Chavez Romero allegedly served as an enforcer for an enterprise that provided prostitution services in Cumberland, Essex, Mercer, Middlesex, Monmouth and Ocean counties. The purpose of the enterprise, which primarily employed illegal aliens in brothels throughout New Jersey, was to promote prostitution, assist illegal aliens to enter the United States, harbor illegal aliens, and to commit murder, assault, and robbery. The enterprise expanded its territory and reputation through the use of intimidation, violence, threats of violence, assaults, and murder. Chavez Romero acted at the direction of the leaders of the enterprise, identified in the indictment as “Individual 1” and “Individual 3.” 

The leaders oversaw brothels in New Brunswick, Trenton, Orange, Asbury Park, Lakewood, and Bridgeton. Individual 1, Chavez Romero and others allegedly threatened, committed, attempted to commit, and assisted in the commission of murder, assault, and robbery. The purpose of these alleged crimes was to thwart rival brothels, exact revenge, punish enterprise members and associates who had been disloyal, and silence people they believe were cooperating with law enforcement.

Chavez Romero allegedly committed robbery, burglary, assault, and murder in furtherance of the enterprise and conspired to conceal, harbor and shield from detection aliens for the purpose of commercial advantage and private financial gain. In relation to this, two people were murdered.

The racketeering and racketeering conspiracy charges are both punishable by life in prison. The assault with a dangerous weapon in aid of racketeering charge is punishable by a maximum potential penalty of 20 years in prison. The charges of murder in aid of racketeering, use of a firearm during a violent crime, and conspiracy to harbor aliens resulting in death are all punishable by a potential penalty of death or life imprisonment. All counts in the indictment are punishable by a $250,000 fine.

U.S. Attorney Fishman credited special agents of the U.S. Department of Homeland Security, Homeland Security Investigations (HSI), under the direction of Special Agent in Charge Terence S. Opiola in Newark, with the investigation leading to the charges.

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

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

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

NEWARK, N.J. – A Newark, New Jersey, man was charged today with robbing five banks from late October 2016 through November 2016, U.S. Attorney Paul J. Fishman announced.

Jermaine Mason, a/k/a “Asim Harris,” 39, is charged by criminal complaint with five counts of bank robbery. Prior to his arrest, Mason was on federal supervised release for a federal bank robbery conviction after he robbed several banks in 2006 and 2007. His initial appearance will be scheduled at a later date.

According to the complaint filed today, Mason robbed the following New Jersey banks:

Bank

Location

Date

Kearny Bank

Harrison

Oct. 21, 2016

PNC Bank

Jersey City

Nov. 3, 2016

Popular Community Bank

Newark

Nov. 17, 2016

Provident Bank

Jersey City

Nov. 18, 2016

Provident Bank

Kearny

Nov. 29, 2016

At each bank, Mason either presented a note demanding cash from bank tellers or verbally demanded money. For example, during the Nov. 3, 2016 robbery, Mason handed the teller a note which read: “I’m not going play [sic] with you. You get one chance. $100 [and] $50 bills pass to me – stack!” Likewise, during the Nov. 17, 2016 robbery, he handed the teller a note reading: “Hand me the money. $100 bills or we [are] going [to] have a problem!”

Mason was apprehended on Nov. 30, 2016, by officers of the Jersey City Police Department, agents from the FBI, and the U.S Marshals.

Each bank robbery charge carries a maximum potential penalty of 20 years in prison and a $250,000 fine.

U.S. Attorney Fishman credited special agents of the FBI’s Violent Crimes/Interstate Theft Task Force, under the direction of Special Agent in Charge Timothy Gallagher in Newark, with the investigation leading to the charges. He also thanked the U.S. Marshals, the Kearny, Jersey City, Harrison, and Newark police departments, as well as the Hudson County and Essex County Prosecutor’s Offices for their efforts in the investigation and apprehension of Mason.

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

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

TRENTON, N.J. – A Lancaster, Pennsylvania, man was sentenced today to 30 months in prison for his role in a string of commercial burglaries in New Jersey, New York, and Pennsylvania, U.S. Attorney Paul Fishman announced. 

Jose Medina, 40, previously pleaded guilty before U.S. District Judge Mary L. Cooper to a superseding information charging him with one count of conspiracy to transport stolen goods in interstate commerce and one count of transportation of stolen goods in interstate commerce. Judge Cooper imposed the sentence today in Trenton federal court.

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

Jose Medina admitted that from October 2012 through August 2014, he conspired with his brother, Eliezer Medina, 38, of Ronks, Pennsylvania, and others to steal money by burglarizing stores in New Jersey, New York, Pennsylvania, and elsewhere, and thereafter transporting the stolen money across state lines.

The conspiracy involved at least 22 burglaries and caused over $480,000 in losses. When committing the burglaries, the conspirators would typically scout the target store in advance, disable the alarm system, and use pry-bars, electrical saws, and other tools to gain access to the stores and safes.

In addition to the prison term, Judge Cooper sentenced Jose Medina to two years of supervised release. He must also forfeit $487,364.44.

Eliezer Medina previously pleaded guilty to his role in the scheme and was sentenced on Oct. 28, 2015 to 30 months in prison.

U.S. Attorney Fishman credited special agents of the FBI in Newark, under the direction of Special Agent in Charge Timothy Gallagher, and special agents of the FBI in Philadelphia, under the direction of Special Agent in Charge Michael Harpster, with the investigation leading to today’s sentencing. He also thanked the Paramus, New Jersey; Wayne, New Jersey; and Pennsauken Township, New Jersey, police departments; the N.J. State Police; and the Lancaster City, Pennsylvania; East Lampert, Pennsylvania; Manor Township, Pennsylvania; Manheim Township, Pennsylvania; and East Hempfield, Pennsylvania, police departments for their work on the case.

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

Defense counsel:  Angelo Servidio, Esq.

NEWARK, N.J. – A Branchburg, New Jersey, man who previously worked as a high school music teacher was sentenced today to 127 months in prison for soliciting a boy to engage in sexually explicit conduct in exchange for money, U.S. Attorney Paul J. Fishman announced. 

David M. Adams, 30, previously pleaded guilty before U.S. District Judge William H. Walls to an information charging him with one count of online enticement of a minor to engage in criminal sexual conduct. Judge Walls imposed the sentence today in Newark federal court.

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

Adams admitted that, between May 2014 and September 2014, he used the internet, including Skype, to induce a victim who was less than 18-years-old to engage in sexually explicit conduct. In exchange for allowing Adams to view the conduct on Skype, Adams paid the victim using PayPal and other means.

During that time, Adams was a music teacher at Eisenhower Middle School in Roxbury, New Jersey. Subsequently, Adams was a music teacher at Bridgewater-Raritan High School in Somerset County, New Jersey.

In addition to the prison term, Judge Walls sentenced Adams to lifetime supervised release.

U.S. Attorney Fishman credited special agents of Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Newark Division, under the direction of Acting Special Agent in Charge Terence S. Opiola, with the investigation leading to today’s sentencing. He also thanked the Branchburg Police Department and the Somerset County Prosecutor’s Office for their assistance in this case.

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

Defense counsel: Michael Baldassare Esq. and Dillon Malar Esq., Newark

NEWARK, N.J. – The chief executive officer and managing director of two Middlesex County, New Jersey, companies today admitted recruiting foreign nationals to enroll at a “pay to stay” New Jersey college in order to fraudulently maintain his clients’ student visa status and obtain full-time work authorizations without having to attend classes, U.S. Attorney Paul J. Fishman announced.

Tejesh Kodali, 45, of Edison, New Jersey, pleaded guilty before U.S. District Judge Madeline Cox Arleo in Newark federal court to an information charging him with one count of conspiracy to commit visa fraud.

On April 5, 2016, 22 brokers, recruiters, and employers, including Kodali, were charged with enrolling foreign nationals in the University of Northern New Jersey, a purported for-profit college located in Cranford, New Jersey (UNNJ). The UNNJ was created in September 2013 by Homeland Security Investigations (HSI). It was not staffed with instructors or educators, had no curriculum, and conducted no actual classes or education activities. It operated solely as a storefront location staffed by federal agents posing as school administrators.

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

Kodali – an Indian citizen and lawful permanent resident in the United States – was the director of operations of Promatrix Corp. and Blue Cloud Techs Corp., which were purported international student recruiting and consulting companies located in Edison.

UNNJ represented itself as a school that, among other things, was authorized to issue a document known as a “Certificate of Eligibility for Nonimmigrant (F-1) Student Status - for Academic and Language Students,” commonly referred to as a Form I-20. This document, which certifies that a foreign national has been accepted to a school and would be a full-time student, typically enables legitimate foreign students to obtain an F-1 student visa. With the visa, they can enter or remain in the United States while they make normal progress toward the completion of a full course of study at a Student and Exchange Visitor Program (SEVP) certified institution.

Kodali told his foreign national clients that for a fee, they could enroll at UNNJ without having to attend any classes and that their enrollment would enable them to fraudulently maintain their nonimmigrant status. With full knowledge that the recruits were not bona fide students and would not attend any courses, earn credits, or make academic progress toward any legitimate degree at UNNJ, Kodali caused Forms I-20 to be issued to the foreign nationals.  

Kodali also caused the foreign nationals to be reported in government databases as legitimate foreign students. In order to deceive immigration officials, Kodali and his foreign clients obtained and created fraudulent student documents, including attendance records and transcripts.

After enabling them to maintain their student visa status, Kodali also conspired to secure fraudulent work authorizations for some of their foreign clients. He admitted that his intention was to profit from the scheme by outsourcing these foreign individuals through Promatrix and Blue Techs as information technology consultants with various businesses in the United States for commissions.  In total, Kodali and his conspirators fraudulently maintained and attempted to obtain 37 student visas and/or work authorizations.

The conspiracy to commit visa fraud charge carries a maximum penalty of five years in prison and a $250,000 fine. Sentencing for Kodali is scheduled for March 13, 2017.

U.S. Attorney Fishman credited special agents of U.S. Immigration and Customs Enforcement, under the leadership of Director Sarah R. Saldaña; HSI Newark, under the leadership of Special Agent in Charge Terence S. Opiola; U.S. Immigration and Customs Enforcement, Counterterrorism and Criminal Exploitation Unit, under the leadership of Unit Chief Roland Burbano; U.S. Citizenship and Immigration Services, Fraud Detection and National Security Section, under the leadership of Associate Director Matthew Emrich; the Student and Exchange Visitor Program, under the leadership of Deputy Assistant Director Louis M. Farrell; U.S. Citizenship and Immigration Services, Vermont Service Center, Security Fraud Division, under the leadership of Associate Center Director Bradley J. Brouillette; U.S. Department of State, Bureau of Consular Affairs, Office of Fraud Prevention Programs, under the leadership of Director Josh Glazeroff; and the FBI, Joint Terrorism Task Force, under the leadership of FBI Special Agent in Charge Timothy Gallagher in Newark, with the investigation.

He also thanked the Accrediting Commission of Career Schools and Colleges (ACCSC), under the leadership of Executive Director Michale S. McComis, and the N.J. Office of Higher Education, under the leadership of Secretary of Higher Education Rochelle R. Hendricks, for their assistance. In addition, U.S. Attorney Fishman thanked the N.J. Motor Vehicle Commission and the New York State Department of Motor Vehicles, as well as the U.S. Attorney’s Offices for the Central District of California, Eastern District of New York, Eastern District of Virginia, Southern District of New York, Central District of Illinois, Peoria Division, and the Northern District of Georgia for their help.

The government is represented by Assistant U.S. Attorney Dennis C. Carletta of the U.S. Attorney’s Office National Security Unit, and Sarah Devlin of the Office’s Asset Forfeiture and Money Laundering Unit.

Defense counsel: Patrick Papalia Esq., Hackensack, New Jersey

TRENTON, N.J. – A Point Pleasant, New Jersey, woman today admitted that she wrongfully accessed protected health information and paid kickbacks to healthcare professionals on behalf of a $1 million Medicare fraud scheme involving the purported non-profit The Good Samaritans of America, U.S. Attorney Paul J. Fishman announced.

Sheila Kahl, 44, pleaded guilty before U.S. District Judge Anne E. Thompson in Trenton federal court to an information charging her with one count of conspiring to commit health care fraud and one count of conspiring to wrongfully access individually identifiable health information and pay illegal remunerations to health care professionals.

“Instead of helping seniors navigate federal benefit programs, The Good Samaritans of America was merely a front for an elaborate Medicare scheme that subjected elderly victims to unnecessary genetic testing, all in an effort to score commission payments from clinical labs,” U.S. Attorney Fishman said. “In addition to wrongfully accessing the victims’ private medical information for personal gain, Kahl helped pay healthcare professionals thousands of dollars in kickbacks to fraudulently authorize the tests.”

“This conspiracy involved stealing private medical information and used particularly callous scare tactics to convince elderly and vulnerable Medicare beneficiaries to submit to medically unnecessary DNA testing,” said Special Agent in Charge Scott J. Lampert, U.S. Department of Health and Human Services – Office of Inspector General. “Today’s plea resulted from joint law enforcement action to detect and block a planned multi-state expansion of this deplorable scam against the program and its enrollees.”

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

From July 2014 through December 2015, Seth Rehfuss, 42, of Somerset, New Jersey, Kahl, and others used The Good Samaritans of America to gain access to low-income senior housing complexes. Rehfuss and others claimed that The Good Samaritans of America was a “trusted non-profit” that assisted senior citizens in navigating federal benefit programs. In reality, The Good Samaritans of America was a front to present information about genetic testing. Kahl, Rehfuss and others even used advertisements for free ice cream to ensure attendance at the presentations.

In order to convince senior citizens to submit to genetic testing, Rehfuss used fear-based tactics during the presentations, including suggesting the senior citizens would be vulnerable to heart attacks, stroke, cancer and suicide if they did not have the genetic testing. In addition, Rehfuss claimed that the genetic testing allowed for “personalized medicine.”

As part of the scheme, Seth Rehfuss and others frequently took DNA swabs in the community rooms where the presentations took place or made arrangements to visit the senior citizen’s apartment on another day to take the DNA swab. Regardless of the timing or location of the swabbing, the DNA swab was collected without the involvement of any healthcare provider and without any determination by a healthcare provider that such testing was medically necessary or appropriate.  

In order to get the tests authorized, Rehfuss used advertisements on Craigslist to recruit healthcare providers for the scheme. After entering into contractual relationships with The Good Samaritans of America, the healthcare providers received requisition forms that often included a patient’s personal information, Medicare information, medication lists and diagnosis codes.

The healthcare providers were paid thousands of dollars per month by Kahl and Rehfuss to sign their names to requisition forms authorizing testing for patients they never examined and were in no way involved in the patients’ care or treatment. In order to keep the scheme going, Kahl used fraudulent email accounts to access the individually identifiable health information of the senior citizens, specifically the results of the DNA analysis. 

Kahl, Rehfuss and others caused the Medicare program to pay more than $1 million to two clinical laboratories. Rehfuss obtained over a hundred thousand dollars and distributed commissions to Kahl of tens of thousands of dollars.

The investigation revealed that Rehfuss and others were actively working towards expanding the scheme outside of New Jersey into other states, including: Georgia, Delaware, Virginia, Maryland, Pennsylvania, South Carolina, Michigan, Mississippi, Florida, Tennessee and Arizona.

The healthcare fraud conspiracy charge carries a maximum potential penalty of 10 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense.  The conspiracy to wrongfully access individually identifiable health information and to pay kickbacks charge carries a maximum penalty of five years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. Sentencing is scheduled for March 14, 2017.

Rehfuss was originally charged for his role in the scheme on Dec. 2, 2015. The pending charges against Rehfuss are merely allegations, and he is considered innocent unless and until proven guilty.  

U.S. Attorney Fishman credited special agents of the U.S. Department of Health and Human Services – Office of the Inspector General, under the direction of Special Agent in Charge Lampert, as well as investigators from the U.S. Attorney’s Office for the District of New Jersey, the U.S. Marshals Service Asset Forfeiture Program, the Cape May County Department of Consumer Affairs, and the Cape May County Office of Aging with the investigation leading to today’s guilty plea.

The government is represented by Assistant U.S. Attorney Danielle M. Corcione of the U.S. Attorney’s Office Health Care and Government Fraud Unit.

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

Defense counsel: Stacy A. Biancamano, Esq.

NEWARK, N.J. – A Newark, New Jersey, man today admitted trying to rob a Paterson, New Jersey, residence while dressed in a Passaic County Sheriff’s uniform, U.S. Attorney Paul J. Fishman announced.

Clemente R. Carlos, 29, pleaded guilty before U.S. District Judge Claire C. Cecchi in Newark federal court to an information charging him with one count of conspiracy to commit Hobbs Act robbery. 

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

Carlos admitted that on Aug. 12, 2015, he conspired with Jason Thompson, 33, of Paterson, and another individual to rob a Paterson home because they believed the resident kept cash proceeds from his distribution business at that location. Carlos and Thompson both dressed in Passaic County Sherriff’s uniforms in order to gain entry into the residence, while the third individual waited outside in a getaway vehicle.

During the robbery, one of the conspirators broke open a piece of furniture in search of the cash proceeds. In addition, the conspirators threatened to kill the residents if they did not comply with their instructions during the robbery. Carlos admitted that during the robbery one victim was physically restrained.

The Hobbs Act conspiracy charge to which Carlos pleaded guilty carries a statutory 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 April 4, 2017.

Thompson was charged by complaint on July 21, 2016 with Hobbs Act robbery conspiracy and being a felon in possession of a firearm. The allegations against him are merely accusations, and he is innocent unless and until proven guilty. 

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

The government is represented by Assistant U.S. Attorney Josh Hafetz of the U.S. Attorney’s Organized Crime/Gangs Unit in Newark.

Defense counsel: Gary Cutler Esq., Newark

CAMDEN, N.J. – A Gloucester County, New Jersey, woman was sentenced today to 33 months in prison for embezzling more than $600,000 from dormant TD Bank customer accounts, U.S. Attorney Paul J. Fishman announced.

Telisha Trent, 43, of Williamstown, New Jersey, previously pleaded guilty before U.S. District Judge Renée Marie Bumb to an information charging her with one count of bank fraud and one count of money laundering. Judge Bumb imposed the sentence today in Camden federal court.

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

From Aug. 9, 2014, through Sept. 11, 2015, Trent used her position as a financial services representative and bank teller at a TD Bank branch in Sewell, New Jersey, to identify dormant checking and savings accounts, primarily held by elderly TD Bank customers. Trent would research the account holder in order to assess the risk of whether the account holder would notice that the funds in the account were removed. She would steal the money in the dormant account by transferring the funds to accounts she controlled or have a cashier’s check issued in her name.  

Trent then transferred the funds through a series of accounts that she controlled in order to hide her fraud. To avoid detection, Trent closed the dormant accounts. Trent admitted obtaining $608,000 in cash from eight TD Bank customers in New Jersey, Connecticut, and Ohio. She admitted to spending the money on home renovations, lavish trips, two BMW sedans, items for her children, and other items. 

After the fraud was discovered, TD Bank reimbursed the victims for the money and funds stolen by Trent.

In addition to the prison term, Judge Bumb sentenced Trent to five years of supervised release and ordered to pay $608,483 in restitution.

U.S. Attorney Fishman credited special agents of the FBI’s South Jersey Resident Agency, under the direction of Special Agent in Charge Michael Harpster in Philadelphia, with the investigation leading to today’s sentencing.

The government is represented by R. Stephen Stigall, U.S. Attorney in Charge of the Camden Office.

Defense counsel: James Conley Esq., Haddon Heights, New Jersey

TRENTON, N.J. – A New Jersey jewelry store owner who used his business to further one of the largest credit card fraud schemes ever charged by the Justice Department was sentenced today to 24 months in prison, U.S. Attorney Paul J. Fishman announced.

Vinod Dadlani, 53, of Lyndhurst, New Jersey, previously pleaded guilty before U.S. District Judge Anne E. Thompson to an information charging him with one count of conspiracy to commit bank fraud. Judge Thompson imposed the sentence today in Trenton federal court.

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

Dadlani was indicted in October 2013 as part of a conspiracy – led by Tahir Lodhi, Babar Qureshi, Ijaz Butt, and others – to fabricate more than 7,000 false identities to obtain tens of thousands of credit cards. Since then, 19 people, including Dadlani, have pleaded guilty in connection with the scheme.

The scheme involved a three-step process in which the defendants would make up a false identity by creating fraudulent identification documents and a phony credit profile with the major credit bureaus; pump up the credit of the false identity by providing bogus information about that identity’s creditworthiness; then borrowed or spent as much as they could without repaying the debts – causing more than $200 million in confirmed losses to businesses and financial institutions.

Many of these debts were incurred at Dadlani’s Jersey City, New Jersey, jewelry store, among many other locations. During his guilty plea proceeding, Dadlani admitted he worked with other conspirators who came to his store and allowed them to swipe cards he knew did not legitimately belong to them. Dadlani would then split the proceeds of the phony transactions with the conspirators.

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

In addition to the prison term, Judge Thompson sentenced Dadlani to two years of supervised release and ordered him to pay forfeiture of $411,000.

U.S. Attorney Fishman credited special agents of the FBI’s Cyber Division, under the direction of Special Agent in Charge Timothy Gallagher in Newark, with the investigation leading to today’s sentencing. He also thanked postal inspectors with the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge James V. Buthorn, Newark Division, special agents of the U.S. Secret Service, under the direction of Special Agent in Charge Mark McKevitt, and the U.S. Social Security Administration for their assistance.

The government is represented by Assistant U.S. Attorneys Zach Intrater and Daniel V. Shapiro of the U.S. Attorney’s Office Economic Crimes Unit, as well as Assistant U.S.

Attorney Barbara Ward, Acting Chief of the Asset Forfeiture and Money Laundering Unit.

This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.stopfraud.gov.

Defense counsel: Vincent Sarubbi Esq., Haddonfield, New Jersey

NEWARK, N.J. – Five members of the New Jersey branch of the international street gang “La Mara Salvatrucha,” or “MS-13”– including the branch’s founding member – were sentenced to prison for their roles in a violent criminal enterprise that included murder, extortion, and plots to kill witnesses, U.S. Attorney Paul J. Fishman and Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division announced today.

Santos Reyes-Villatoro, a/k/a “Mousey,” 43, of Bound Brook, New Jersey, Julian Moz-Aguilar, a/k/a “Humilde,” 29, of Plainfield, New Jersey, and Hugo Palencia, a/k/a “Taliban,” 24, of Plainfield, were each sentenced today to life plus 10 years in prison. Mario Oliva, a/k/a “Zorro,” 30, and Esau Ramirez, a/k/a “Panda,” 25, both of Plainfield, were sentenced Nov. 27, 2016 to life plus 10 years in prison and 169 months in prison, respectively.

All five defendents were previously convicted following a 16-week trial before U.S. District Judge Stanley R. Chesler, who imposed the sentences this week in Newark federal court. Reyes-Villatoro, Oliva, Moz-Aguilar, and Palencia were each convicted of racketeering conspiracy, murder in aid of racketeering, use of a firearm in a violent federal crime, and murder resulting from a federal firearm crime. Ramirez was convicted of racketeering conspiracy and conspiracy to commit murder in aid of racketeering.

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

MS-13 is a national and transnational gang with branches or “cliques” operating throughout the United States, including in Plainfield. All of the defendants were members of the “Plainfield Locos Salvatruchas” (PLS) clique of MS-13 that was founded by Reyes-Villatoro and operated in Union, Somerset, and Middlesex Counties. Reyes-Villatoro, Oliva and Roberto Contreras, a/k/a “Demonio,” 28, of Bound Brook, all served as “First Word,” or leader, of PLS.

From 2007 through September 2013, MS-13 members from PLS committed five murders in furtherance of MS-13’s objectives. On Feb. 9, 2009, Reyes-Villatoro, acting as the leader of PLS, drove Moz-Aguilar and other MS-13 members through the streets of Plainfield searching for rival gang members, eventually stopping at the Plainfield train station. There, Moz-Aguilar used a firearm previously provided by Reyes-Villatoro to murder a victim who was believed to be a member of the Latin Kings, a rival gang.

On Feb. 27, 2010, Oliva drove a female member of MS-13 to an empty parking lot in Piscataway, New Jersey, and murdered her because she was suspected of working with law enforcement. Oliva then fled New Jersey with the assistance of Contreras and hid from law enforcement with the MS-13 Pinos clique in Oxon Hill, Maryland.

On Nov. 11, 2010, Palencia drove another MS-13 member to the area around Barack Obama Academy in Plainfield, where they encountered students challenging MS-13. Palencia pulled over, provided a firearm to another MS-13 member and instructed him to shoot at one of the individuals. The MS-13 member shot into the crowd, killing a bystander.

On Jan. 10, 2011, Moz-Aguilar, Contreras and other MS-13 members were in a car when they spotted a suspected 18th Street gang member in front of a restaurant. Contreras stopped the vehicle and an MS-13 member exited, approached the suspected rival gang member and shot him in the head.

On May 8, 2011, Cruz Flores, a/k/a “Bruja,” 30, of Bound Brook, murdered a victim who was caught socializing with 18th Street gang members. Flores and another MS-13 member cut his throat, beat him with a bat and stabbed him in the back 17 times. An MS-13 member involved in this murder fled New Jersey and was driven to Maryland soon after law enforcement began searching for him.  

Jose Garcia, a/k/a “Chucky” and “Diabolico,” 24, of Plainfield, recruited and hired MS-13 members from the Maryland-based Pinos clique to come to New Jersey and murder a woman in exchange for $40,000. The Pinos clique members were arrested by authorities as they pulled into Plainfield.

After several MS-13 members were arrested in July 2011, Ramirez and Garcia used phones from inside the Union County, New Jersey, jail to order the murder of three witnesses believed to be cooperating with police and responsible for their arrests.

According to evidence presented at trial, members of PLS also were responsible for an attempted murder of suspected Latin King members near a car wash in Plainfield; the attempted murder of suspected Latin King members in January 2009; a machete attack in May 2011 and another in June 2011 on the train tracks passing through Plainfield; an attempted murder shooting in Plainfield in May 2011; and several other violent crimes, including extortion, robbery and several weapons offenses.

The defendants were originally charged in a 26-count indictment returned by a federal grand jury in September 2013. As of today, 13 of the 14 individuals charged in that indictment have been convicted. One defendant remains a fugitive. Contreras, Garcia, and Flores await sentencing.

U.S. Attorney Fishman and Assistant Attorney General Caldwell credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark; Immigration and Customs Enforcement, Enforcement and Removal Operations (ERO), under Newark Field Office Director John Tsoukaris; and Homeland Security Investigations (ICE-HSI), under the direction of Special Agent in Charge Terence S. Opiola, with the investigation. They also thanked the Union County Prosecutor’s Office, under the direction of Acting Prosecutor Grace H. Park, for long, close collaboration on the case.

They also thanked the Somerset County Prosecutor’s Office, under the direction of Acting Prosecutor Michael H. Robertson, and the Middlesex County Prosecutor’s Office, under the direction of Prosecutor Andrew C. Carey, for their roles. They also acknowledged the U.S. Attorney’s Offices for the Eastern District of Virginia and the District of Maryland, as well as the Plainfield Police Department, Union County Police Department, Union County Sheriff’s Office, Elizabeth Police Department, North Plainfield Police Department, Union County Department of Corrections, Prince George’s County, Maryland, Police Department and the U.S. Marshal’s Service for their assistance.

 The government is represented by Assistant U.S. Attorneys James M. Donnelly and  J. Jamari Buxton of the U.S. Attorney’s Office Criminal Division in Newark and by Kevin L. Rosenberg, of the Organized Crime and Gangs Section of the Department of Justice.

Five New Jersey gang members were sentenced to prison today and Monday of this week for conspiring to participate in racketeering activities and committing murders on behalf of the racketeering enterprise known as La Mara Salvatrucha, or MS-13, Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Paul J. Fishman of the District of New Jersey announced.

Santos Reyes-Villatoro, aka “Mousey,” 43, of Bound Brook, New Jersey, Julian Moz-Aguilar, aka “Humilde,” 29, of Plainfield, New Jersey, and Hugo Palencia, aka “Taliban,” 24, of Plainfield, were each sentenced today to life plus 120 months in prison. Mario Oliva, aka “Zorro,” 30, and Esau Ramirez, aka “Panda,” 25, both of Plainfield, were sentenced Nov. 27, 2016 to life plus 120 months in prison and 169 months in prison, respectively. 

All five defendants were previously convicted following a 16-week trial before U.S. District Judge Stanley R. Chesler of the District of New Jersey.  Reyes-Villatoro, Oliva, Moz-Aguilar and Palencia were each convicted of racketeering conspiracy, murder in aid of racketeering, use of a firearm in a violent federal crime and murder resulting from a federal firearm crime.  Ramirez was convicted of racketeering conspiracy and conspiracy to commit murder in aid of racketeering.

According to the documents filed in this case and the evidence presented at trial, MS-13 is a national and transnational gang with branches, or cliques, operating throughout the United States, including in Plainfield.  All of the defendants were members of the Plainfield Locos Salvatruchas (PLS) clique of MS-13 that was founded by Reyes-Villatoro and operated in Union, Somerset and Middlesex Counties.  Reyes-Villatoro, Oliva and Roberto Contreras, aka “Demonio,” 28, of Bound Brook, all served as leaders, or First Word, of PLS.

According to the trial evidence, from 2007 through September 2013, MS-13 members from PLS committed five murders in furtherance of MS-13’s objectives.  On Feb. 9, 2009, Reyes-Villatoro, acting as the leader of PLS, drove Moz-Aguilar and other MS-13 members through the streets of Plainfield searching for rival gang members, eventually stopping at the Plainfield train station.  There, Moz-Aguilar used a firearm previously provided by Reyes-Villatoro to murder a victim who was believed to be a member of the Latin Kings, a rival gang. 

On Feb. 27, 2010, Oliva drove a female member of MS-13 to an empty parking lot in Piscataway, New Jersey, and murdered her because she was suspected of working with law enforcement.  Oliva then fled New Jersey with the assistance of Contreras and hid from law enforcement with the MS-13 Pinos clique in Oxon Hill, Maryland. 

On Nov. 11, 2010, Palencia drove another MS-13 member to the area around Barack Obama Academy in Plainfield, where they encountered students challenging MS-13.  Palencia pulled over, provided a firearm to another MS-13 member and instructed him to shoot at one of the individuals.  The MS-13 member shot into the crowd, killing a bystander.

On Jan. 10, 2011, Moz-Aguilar, Contreras and other MS-13 members were in a car when they spotted a suspected 18th Street gang member in front of a restaurant.  Contreras stopped the vehicle and an MS-13 member exited, approached the suspected rival gang member and shot him in the head.

On May 8, 2011, Cruz Flores, aka “Bruja,” 30, of Bound Brook, murdered a victim who was caught socializing with 18th Street gang members.  Flores and another MS-13 member cut his throat, beat him with a bat and stabbed him in the back 17 times.  An MS-13 member involved in this murder fled New Jersey and was driven to Maryland soon after law enforcement began searching for him.   

The evidence presented at trial also showed that Jose Garcia, aka “Chucky” and “Diabolico,” 24, of Plainfield, recruited and hired MS-13 members from the Maryland-based Pinos clique to come to New Jersey and murder a woman in exchange for $40,000. The Pinos clique members were arrested by authorities as they pulled into Plainfield, before the murder could occur.  In addition, after several MS-13 members were arrested in July 2011, Ramirez and Garcia used phones from inside the Union County, New Jersey, jail to order the murder of three witnesses believed to be cooperating with police and responsible for their arrests. Members of PLS also were responsible for an attempted murder of suspected Latin King members near a car wash in Plainfield; the attempted murder of suspected Latin King members in January 2009; a machete attack in May 2011 and another in June 2011 on the train tracks passing through Plainfield; an attempted murder shooting in Plainfield in May 2011; and several other violent crimes, including extortion, robbery and several weapons offenses.

The defendants were originally charged in a 26-count indictment returned by a federal grand jury in September 2013.  Currently, 13 of the 14 individuals charged in that indictment have been convicted, and one defendant remains a fugitive.  Contreras, Garcia and Flores await sentencing.

The FBI’s Newark Field Office, U.S. Immigration and Customs Enforcement’s (ICE) Enforcement and Removal Operations and ICE Homeland Security Investigations investigated the case.  The Union County Prosecutor’s Office provided substantial assistance in the investigation.  The Somerset County, New Jersey, Prosecutor’s Office; Middlesex County, New Jersey, Prosecutor’s Office; U.S. Attorney’s Offices of the Eastern District of Virginia and the District of Maryland; Plainfield Police Department; Union County Police Department; Union County Sheriff’s Office; Elizabeth, New Jersey, Police Department; North Plainfield, New Jersey, Police Department; Union County Department of Corrections; Prince George’s County, Maryland, Police Department; and the U.S. Marshals Service also provided assistance in this matter.  Trial Attorney Kevin L. Rosenberg of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys James Donnelly and Jamari Buxton of the District of New Jersey are prosecuting this case. 

NEWARK, N.J. – Two New York men were arrested today for allegedly forcing employees to work for them at a Halal chicken slaughterhouse in Middlesex County, U.S. Attorney Paul J. Fishman announced.

Mohammad Abdul Wahid, 54, of Queens, New York, and Mohammed Iqbal Kabir, 42, of Bronx, New York, are charged by complaint with one count each of conspiracy to commit forced labor (human trafficking); conspiracy to harbor undocumented persons for financial gain; and violating the Fair Labor Standards Act. The defendants appeared before U.S. Magistrate Judge Joseph A. Dickson in Newark federal court and both were released on $75,000 unsecured bond each, with home confinement and electronic monitoring.

“The Department of Justice is committed to working with our law enforcement partners to seek justice on behalf of vulnerable victims of human trafficking,” Vanita Gupta, head of the Civil Rights Division, said. “The Civil Rights Division commends the District of New Jersey, as one of our six Phase II Anti-Trafficking Coordination Teams (ACTeam), for its leadership on the front lines of shared efforts to hold human traffickers accountable.”

“This is precisely the kind of case the ACTeams were designed to investigate and prosecute,” U.S. Attorney Fishman said. “The criminal complaint against these defendants describes conduct that is as inhumane as it is illegal. By bringing to bear the resources of multiple law enforcement agencies with expertise on human trafficking, we can work more effectively to combat these kinds of crimes.”

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

From July 2011 through January 2016, Wahid owned and operated a Halal chicken slaughterhouse business in Perth Amboy, New Jersey. The business operated pursuant to Halal practices, which meant that the live poultry was slaughtered by Muslim individuals. The poultry would then be cleaned and prepared for sale by other employees. During the time that the facility was operational, Wahid and Kabir allegedly employed undocumented persons. The employees were paid approximately $290 a week in cash and would typically work 70 to 100 hours a week, working six or seven days a week. The employees were not paid more if they worked more hours, nor were they given overtime pay. The employees lived in a boarding house in front of the business, for which Wahid allegedly deducted $40 a week from the employees’ pay checks. The boarding house did not have heat or hot water and was infested with insects. 

The defendants also employed two Muslim individuals to slaughter the chickens and forced them to continue working at the slaughterhouse. When these two victims complained about the hours they were working and the conditions of the facility (no gloves, masks or proper soap), the defendants allegedly threatened to call the police. The victims were afraid of being arrested and deported and they continued to work until health inspectors closed the business.        

The human trafficking charge with which the defendants are charged carries a maximum penalty of 20 years in prison and a $250,000 fine. The harboring undocumented persons for financial gain carries a maximum penalty of 10 years in prison and a fine of $250,000. The violations of the Fair Labor Standards Act carry a maximum of six months in jail and a fine of $10,000.

This case was developed through the efforts of the New Jersey Anti-Trafficking Coordination Team (ACTeam). The District of New Jersey is one of six federal districts designated through a competitive, nationwide selection process as a Phase II ACTeam, through the interagency ACTeam Initiative of the Departments of Justice, Homeland Security and Labor.  ACTeams focus on developing high-impact human trafficking investigations and prosecutions involving forced labor, international sex trafficking and sex trafficking by force, fraud or coercion through interagency collaboration among federal prosecutors and federal investigative agencies. This case was developed through the collaborative interagency efforts of the U.S. Attorney’s Office, Department of Labor, Department of Homeland Security, FBI, IRS, and Department of Agriculture, with the assistance of the Civil Rights Division’s Human Trafficking Prosecution Unit.

The government is represented by Assistant U.S. Attorney Meredith Williams of the U.S. Attorney’s Office Narcotics/OCDETF Unit in Newark. AUSA Williams also serves as the U.S. Attorney’s Human Trafficking coordinator for the District of New Jersey.

U.S. Attorney Fishman credited the Department of Homeland Security, New Jersey Division, under the direction of Special Agent in Charge Terence S. Opiola; the U.S. Department of Labor, Office of Inspector General, New York Region, under the direction of Special Agent in Charge Michael Mikulka; the FBI, New Jersey Division, under the direction of Special Agent in Timothy Gallagher; the Department of Labor, Wage and Hour, New Jersey division, under the direction of Special Agent in Charge Charlene Rachor; the U.S. Department of Labor - Wage and Hour Division, Northern New Jersey, under the direction of Director John Warner; IRS-Criminal Investigation, New Jersey Division, under the direction of Special Agent in Charge Jonathan D. Larsen; and the U.S. Department of Agriculture, under the direction of Special Agent in Charge William Squires Jr., with the investigation leading to today’s charges.

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

Defense counsel:

Wahid: Mohammed Gangat Esq., New York

Kabir: Carol Gillen Esq., Assistant Federal Public Defender, Newark

NEWARK, N.J. – Two men appeared in federal court today to face distribution conspiracy and possession charges after law enforcement found over two kilograms of cocaine and heroin in their possession, U.S. Attorney Paul J. Fishman announced.

Hasan J. Johnson, 37, of Chester, Pennsylvania, and Jose D. Martinez, 50, of Palisades Park, New Jersey, are each charged by complaint with one count of conspiracy to distribute and possess with intent to distribute 500 grams or more of cocaine. Martinez is also charged with one count of possession with intent to distribute 500 grams or more of cocaine and 100 grams or more of heroin. Both defendants were arrested last night and appeared this afternoon before U.S. Magistrate Judge Joseph A. Dickson in Newark federal court.

According to the complaint:

On Nov. 28, 2016, Johnson – who was observed by law enforcement officers leaving a residence in Palisades Park with a bag – was pulled over after committing several traffic violations. During the ensuing stop, Johnson gave consent to search the vehicle. Afterwards, law enforcement officers allegedly found approximately one kilogram of cocaine in the bag. 

Later that night, law enforcement obtained a search warrant for the Palisades Park residence. When they entered the New Jersey Residence they found Martinez in possession a package containing another kilogram of cocaine, as well as 694 grams of heroin.           

Both the conspiracy and possession charges carry a mandatory minimum penalty of five years in prison, a potential maximum penalty of 40 years in prison, and a $5 million fine.

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

U.S. Attorney Fishman credited the Drug Enforcement Administration (DEA)’s New Jersey Division, under the direction of Special Agent in Charge Carl J. Kotowski, with the investigation leading to the charges.

NEWARK, N.J. – A former vice president of a Secaucus-based fabric company pleaded guilty today to stealing nearly a $1 million in goods from his employer and selling it for his own profit, U.S. Attorney Paul J. Fishman announced.

Javan Smith, 72, of Delray Beach, Florida, pleaded guilty before U.S. District Judge William J. Martini in Newark federal court to an information charging him with one count of interstate transportation of stolen property.

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

From 1992 to 2014, Smith was an employed as vice president of distribution for a fabric company and worked at the company’s Secaucus warehouse. Starting in 2010, Smith engineered a scheme to steal merchandise and sell it “off the books” to several of his employer’s customers for less than what they would pay if they purchased the items legitimately.

Smith made side arrangements in which a customer would place orders for a certain amount of merchandise, receive far more than the amount on the purchase orders, and then pay Smith for his role in getting the stolen goods. In other cases, the customer would place an order for merchandise, have the merchandise delivered, and then – with Smith’s help – would cancel the order and receive a refund. The customer kept the merchandise and paid a portion of the refund to Smith. Overall, Smith’s scheme caused approximately $945,000 in losses to his employer.  

The conspiracy charge to which Smith pleaded guilty carries a maximum potential penalty of 10 years in prison and a $250,000 fine. 

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

The government is represented by Assistant U.S. Attorneys Lakshmi Herman and Zach Intrater of the U.S. Attorney’s Office Economic Crimes Unit in Newark.

Defense counsel: Evan Goldman Esq., Hackensack, New Jersey