District of New Jersey

CAMDEN, N.J. – Two 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.

Robert Smith, a/k/a “Born,” 43, of Trenton, New Jersey, and Derrick Adams, a/k/a “Little D,” 30, of Florence and Willingboro, New Jersey, were sentenced today by U.S. District Judge Noel L. Hillman to 360 and 120 months in prison, respectively.

Following a one-week jury trial in April 2016, Smith was convicted of conspiracy to commit robbery, conspiracy to distribute five or more kilograms of cocaine, possessing a firearm in connection with a crime of violence and a drug trafficking crime, and possessing a firearm as a previously-convicted felon. Adams pleaded guilty in November 2015 to conspiracy to commit robbery and conspiracy to distribute five or more kilograms of cocaine.

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

In January 2014, the conspirators planned a gunpoint robbery of a drug stash house in order to steal kilograms of cocaine from dealers at the location. During the investigation, Smith was recorded discussing his willingness, if necessary, to kill the occupants of the stash house. Smith and Adams, in text message conversations and recorded communications, discussed their plan to rob the stash house while posing as law enforcement.

Special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) arrested Smith, Adams, and four other conspirators when they arrived at a meeting location in Maple Shade, New Jersey, on Jan. 30, 2014. After searching the conspirators and their vehicles, the agents recovered five firearms – including a sawed-off shotgun and two stolen handguns – as well as numerous rounds of ammunition, a ballistics vest, masks, gloves, and zip ties.

In addition to the prison terms, Judge Hillman also ordered Smith and Adams to each serve five years of supervised release.

Three other conspirators, Daquon Basnight, 25, Jamiil McFarlane, 24, and Morris Muse, 36, all of Trenton, New Jersey, were previously sentenced before Judge Hillman. A sixth conspirator, Sean Forman, 43, of Willingboro, New Jersey, awaits sentencing.

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 Burlington City and Burlington Township police departments, for their assistance in this case.

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

TRENTON, N.J. – The founder of the United Security and Police Officers of America (USPOA) was sentenced today to 37 months in prison for embezzling hundreds of thousands of dollars in union funds for his personal use, U.S. Attorney Paul J. Fishman announced.

Assane Faye, 61, of Toms River, New Jersey, was previously convicted of all counts of an indictment charging him with two counts of embezzling union funds and seven counts of mail fraud arising from unemployment insurance fraud. Faye was convicted following a three-week trial before U.S. District Judge Peter G. Sheridan, who imposed the sentence today in Trenton federal court.

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

As the founder, national president, and director of the USPOA, as well as a signatory on the USPOA checking account, Faye was obligated to hold and disperse funds of the USPOA solely for the benefit of the union and its members.

Yet in Feb. 2010, without approval of the USPOA Executive Board, Faye put a woman identified in the indictment as “Individual 1,” whom with he had a prior romantic relationship, on the USPOA payroll for $800 a week, purportedly to act as a USPOA organizer in New York. She received additional allowances of $1500 for monthly medical coverage, as well as disbursements for mileage, tolls, parking and vehicle tune-ups.  Individual 1 had limited ability to communicate in English, lacked labor organizing experience, and did not own a personal vehicle. As such, Faye’s representations to the Executive Board of her organizing successes were fictional. In addition, Faye had access to both Individual 1’s personal data and bank accounts.

For three and one half years, the union dispersed over $244,000 to Individual 1 while she performed no services for the union. Individual 1 testified that, for at least six months of every year she was on the payroll, she resided in her home country of Senegal. During that time, Faye withdrew approximately $180,000 of her union salary and expense payments for his personal use.

In addition, Faye submitted to the USPOA inflated reimbursement vouchers purportedly for mileage and wear and tear on his personal car, even though he was using rental vehicles. Faye even submitted false vouchers when he traveled outside the United States to Paris, Dubai, China and Milan.  

Lastly, despite controlling and collecting disbursements from the USPOA operating account, between April 5, 2010 and June 30, 2010, Faye also committed seven counts of mail fraud by misrepresenting his employment status and fraudulently collecting over $7,000 in unemployment payments from New Jersey’s Unemployment Insurance Division.

In addition to the prison term, Judge Sheridan sentenced Faye to three years of supervised release and ordered him to pay restitution of $350,000.

U.S. Attorney Fishman credited the Department of Labor, Office of Inspector General (OIG), under the supervision of Acting Supervisory Agent in Charge Jonathan Mellone, and the Office of Labor Management Standard (OLMS) under the supervision of District Director Andriana Vamvakas for the investigation and trial support leading to today’s sentence.

The government is represented by Senior Litigation Counsel V. Grady O’Malley and Assistant U.S. Attorney Josh Hafetz of the U.S. Attorney’s Office’s Organized Crime and Gang Unit in Newark.

Defense counsel: Andrea Bergman and Lisa Van Hoeck, Federal Public Defenders

The Justice Department filed a lawsuit today against Bernards Township, New Jersey, alleging that the township violated the Religious Land Use and Institutionalized Persons Act of 2000 (RLUIPA) when it denied zoning approval to allow the Islamic Society of Basking Ridge to build a mosque on land it owns.  The land is located in a zone that, at the time of the Islamic Society’s zoning request, permitted the construction of places of worship as a matter of right.

The complaint, filed in U.S. District Court for the District of New Jersey, alleges that Bernards Township’s denial of approval for the mosque discriminated against the Islamic Society based on its religion and the religion of its members; applied standards and procedures on the Islamic Society that it had not applied to other religious and non-religious assemblies in the past; and imposed a substantial burden on the Islamic Society’s religious exercise.  The complaint also alleges that the township violated RLUIPA by amending its zoning ordinance in a manner that imposes unreasonable limitations on all religious assemblies.

“Sixteen years ago, Congress passed RLUIPA unanimously – with diverse religious and ideological support – because it recognized the fundamental right of all religious communities to build places of worship free from discrimination,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division.  “No congregation or community should ever face unlawful barriers to practicing their religion and observing their faith.”

“As alleged in the complaint, Bernards Township has treated the Islamic Society of Basking Ridge differently than other houses of worship,” said U.S. Attorney Paul Fishman of the District of New Jersey.  “RLUIPA ensures that municipalities must treat religious land use applications like any other land use application.  But here, township officials kept moving the goalposts by using ever-changing local requirements to effectively deny this religious community the same access as other faiths.”

RLUIPA contains multiple provisions prohibiting religious discrimination and protecting against unjustified burdens on religious exercise.  Persons who believe that they have been subjected to religious discrimination in land use or zoning may contact the Civil Rights Division’s Housing and Civil Enforcement Section at (800) 896-7743.

More information about RLUIPA, including questions and answers about the law and other documents, may be found at http://www.justice.gov/crt/about/hce/rluipaexplain.php.

Bernards Township Complaint

NEWARK, N.J. – The Justice Department filed a lawsuit today against Bernards Township, New Jersey, alleging that the township violated the Religious Land Use and Institutionalized Persons Act of 2000 (RLUIPA) when it denied zoning approval to allow the Islamic Society of Basking Ridge to build a mosque on land it owns.  The land is located in a zone that, at the time of the Islamic Society’s zoning request, permitted the construction of places of worship as a matter of right.

The complaint, filed in U.S. District Court for the District of New Jersey, alleges that Bernards Township’s denial of approval for the mosque discriminated against the Islamic Society based on its religion and the religion of its members; applied standards and procedures on the Islamic Society that it had not applied to other religious and non-religious assemblies in the past; and imposed a substantial burden on the Islamic Society’s religious exercise.  The complaint also alleges that the township violated RLUIPA by amending its zoning ordinance in a manner that imposes unreasonable limitations on all religious assemblies.

“As alleged in the complaint, Bernards Township has treated the Islamic Society of Basking Ridge differently than other houses of worship,” U.S. Attorney for New Jersey Paul J. Fishman said. “RLUIPA ensures that municipalities must treat religious land use applications like any other land use application. But here, township officials kept moving the goalposts by using ever-changing local requirements to effectively deny this religious community the same access as other faiths.”

“Sixteen years ago, Congress passed RLUIPA unanimously – with diverse religious and ideological support – because it recognized the fundamental right of all religious communities to build places of worship free from discrimination,” Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division, said.  “No congregation or community should ever face unlawful barriers to practicing their religion and observing their faith.”

RLUIPA contains multiple provisions prohibiting religious discrimination and protecting against unjustified burdens on religious exercise.  Persons who believe that they have been subjected to religious discrimination in land use or zoning may contact the Civil Rights Division’s Housing and Civil Enforcement Section at (800) 896-7743 or the District of New Jersey Civil Rights Complaint Hotline at (855) 281-3339.

More information about RLUIPA, including questions and answers about the law and other documents, may be found at http://www.justice.gov/crt/about/hce/rluipaexplain.php.

NEWARK, N.J. – A resident of Jamaica, West Indies, today admitted swindling elderly residents of the United States by falsely telling them they had won millions of dollars in Jamaican lotteries, U.S. Attorney Paul J. Fishman announced.

Ricardo Reid, 31, pleaded before U.S. District Court Judge Susan D. Wigenton in Newark federal court to an indictment charging him with one count of conspiracy to commit mail and wire fraud.

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

From 2011 to 2016, Reid purchased mailing lists that contained addresses and other information of elderly individuals and then solicited these individuals by tricking them into believing they had won millions in lotteries and sweepstakes. He also told the elderly individuals that in order to redeem these fictitious winnings, they had to pay registration fees and other fees and taxes. Reid told the victims that the calls were from officials of the United States, such as the IRS, and from lottery or bank officials.

Reid admitted that he used aliases like “Robert Gates,” “Mr. Bogohazian,” and “Damien Boswel,” and used call forwarding and Voice Over Internet Protocol services to make and receive calls, masking his phone number and location.

The conspiracy county to which Reid pleaded guilty carries a maximum prison term of 20 years and a fine of up to $250,000. Sentencing is scheduled for Feb. 27, 2017                        .

U.S. Attorney Fishman credited special agents of U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI), under the direction of Special Agent in Charge Terence S. Opiola; and 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 guilty plea.

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

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

NEWARK, N.J. – A senior engineering officer employed by an Italian shipping company was sentenced today to eight months in prison for deliberately concealing a vessel’s discharge of oily waste into the sea, U.S. Attorney Paul J. Fishman announced.

Girolamo Curatolo, 50, of Custonaci, Sicily, the chief engineer of an oil tanker, the M/T Cielo di Milano, previously pleaded guilty before U.S. District Judge Susan D. Wigenton to an information charging him with one count of conspiring to violate the Act to Prevent Pollution from Ships. Judge Wigenton imposed the sentence today in Newark federal court.

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

The vessel, owned by D’Amico Shipping Italia S.p.A. and managed by D’Amico Societa di Navigazione S.p.A., visited ports in New Jersey multiple times, as well as ports in Maryland and Florida.

Curatolo admitted that the crew had intentionally bypassed required pollution prevention equipment by discharging oily waste from the engine room through its sewage system into the sea. He also admitted that he falsified the vessel’s Oil Record Book, a required log regularly inspected by the U.S. Coast Guard.

Curatolo admitted he made false statements to the Coast Guard during its inspection of the M/T Cielo di Milano in January 2015, instructing lower-level crew members to make false statements and destroying the vessel’s sounding log – which records the contents of storage tanks aboard the vessel, including those containing oily waste – by ripping the pages out and burning it in the vessel’s boiler after the Coast Guard had boarded the vessel.

In addition to the prison term, Judge Wigenton sentenced Curatolo to one year of supervised release and ordered him to pay a $5,000 fine.

Danilo Maimone, 31, of Furci Siculo, Sicily, the ship’s first assistant engineer, pleaded guilty to an information charging him with conspiring to obstruct justice. Maimone admitted concealing the discharge of oily waste as well as causing a false Oil Record Book to be presented to the Coast Guard during its inspection of the vessel. He also admitted making false statements and instructing lower-level crew members to do the same during the January 2015 inspection. Maimone is scheduled for sentencing on Jan. 18, 2017.

U.S. Attorney Fishman credited special agents of the U.S. Coast Guard Investigative Service, under the direction of Special Agent in Charge Richard D. Cox, with the investigation leading to today’s sentencing. 

The government is represented by Assistant U.S. Attorneys Kathleen P. O’Leary and Kelly Graves of the U.S. Attorney’s Office General Crimes Unit in Newark, and Trial Attorneys Brandy Parker and John Cashman of the Environmental Crimes Section of the U.S. Department of Justice Environment and Natural Resources Division.

Defense counsel:

Curatolo: Michael G. Chalos Esq. of New York

Maimone: Ronald A. Sarachan Esq. of Philadelphia

Used ‘Booster Bag’ to Steal Hundreds of Thousands of dollars in Merchandise

TRENTON N.J. – A Middlesex County, New Jersey, man was sentenced today to 41 months in prison for shoplifting Barnes and Noble merchandise, selling the goods on eBay and failing to report the illicit proceeds to the IRS, U.S. Attorney Paul J. Fishman announced.

Dominick James Izzo, 50, of Piscataway, New Jersey, and Port Orange, Florida, previously pleaded guilty before U.S. District Judge Freda L. Wolfson to an information charging him with one count of transportation of stolen goods and one count of tax evasion.

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

Izzo admitted that he stole merchandise from Barnes & Noble stores in New Jersey, Florida and elsewhere using a “booster bag” lined with aluminum to evade anti-theft alarms. He then listed the stolen merchandise on eBay using nominee seller accounts to conceal his identity. Izzo accepted payment for the stolen merchandise from purchasers via nominee PayPal accounts. Once Izzo received funds via domestic wire transfer from the purchasers, he shipped the stolen merchandise from New Jersey and Florida to the purchasers in several different states.

For the tax years 2009, 2010 and 2011, Izzo admitted he intentionally failed to report $399,485 in income he received from the sale of stolen merchandise from Barnes & Noble and other businesses. Izzo owed the government $67,360.

In addition to the prison term, Judge Wolfson sentenced Izzo to three years of supervised release and ordered to pay restitution of $207,000.  

U.S. Attorney Fishman credited postal inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge Maria L. Kelokates, and special agents of IRS–Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen, with the investigation leading to today’s sentencing.

The government is represented by Senior Litigation Counsel Andrew Leven and Assistant U.S. Attorney Lakshmi Srinivasan Herman of the U.S. Attorney’s Office Economic Crimes Unit in Newark.

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

NEWARK, N.J. – A Newark man was sentenced today to 40 months in prison for distributing large quantities of heroin in and around downtown Newark, U.S. Attorney Paul J. Fishman announced today.

Jarez Baron a/k/a “Little Bro,” 28, of Newark, pleaded guilty before U.S. District Judge Jose L. Linares to a superseding information charging him with conspiracy to distribute 100 grams or more of heroin. Judge Linares imposed the sentence today in Newark federal court.

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

Between February 2013 and Aug. 7, 2013, Baron conspired with others to distribute large quantities of heroin and oxycodone out of a downtown Newark clothing store called Ballas Boutique. Baron and others sold drugs out of this location to a confidential source more than 35 times. The majority of the sales were audio and video recorded.

Law enforcement intercepted conversations of Baron and his conspirators pursuant to court orders. The intercepted conversations revealed that Baron and other employees sold drugs for Lamont Vaughn, 33, of Newark, at Ballas Boutique.

On Aug. 7, 2013, law enforcement officers executed arrest and search warrants at Ballas Boutique and at Vaughn and Baron’s home in Newark. Among the items recovered were dozens of oxycodone pills, two firearms, and a large amount of cash.

In addition to the prison term, Judge Linares sentenced Baron to three years of supervised release.

Vaughn pleaded guilty on June 22, 2016, to conspiracy to distribute 100 grams or more of heroin and oxycodone and to being a felon in possession of two firearms. He was sentenced Oct. 5, 2016, to 65 months in prison.

Another co-defendant, Felicia Holt, 30, of Newark, pleaded guilty on March 11, 2014, to an information charging her with one count of conspiracy to distribute heroin and was sentenced Nov. 17, 2016, to 45 months in prison.

U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, as well as the N.J. State Police Street Gangs North Unit with the investigation leading to today’s sentencing.

The government is represented by Special Litigation Counsel Margaret Ann Mahoney and Assistant U.S. Attorney Francisco J. Navarro of the U.S. Attorney’s Office Criminal Division in Newark.

Defense counsel:

Baron: Frank P. Arleo Esq., West Orange, New Jersey

Vaughn: pro se

Holt: Joseph Rubino Esq., Union, New Jersey

NEWARK, N.J. – A native of Romania who was arrested in Spain and extradited to the United States today admitted 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. 

Alin Carabus, 42, pleaded guilty before U.S. District Judge William J. Martini in Newark federal court to Count One of an indictment charging him with conspiracy to commit bank fraud.

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

Carabus admitted he was part 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. Carabus and others then secretly installed 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 at ATMs.

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

The conspiracy to commit bank fraud charge carries a maximum potential penalty of 30 years in prison and a $1 million fine. Sentencing is scheduled for Feb. 23, 2017.

The ATM skimming operation in which Carabus 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 Carabus, Vintila and Radu, have been convicted.

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 guilty plea.   

The government is represented by Assistant U.S. Attorneys Rahul Agarwal of the Special Prosecutions Division and David M. Eskew of the Criminal Division in Newark. 

Defense Counsel: Joseph M. Corazza Esq., Sparta, New Jersey

NEWARK, N.J. – The mayor of the City of Passaic, New Jersey, today admitted taking $110,000 in corrupt payments from developers doing business in the city, U.S. Attorney Paul J. Fishman announced.

Alex D. Blanco, 44, of Passaic, pleaded guilty before U.S. District Judge William J. Martini in Newark federal court to an information charging him with one count of soliciting and accepting corrupt payments in connection with City of Passaic business.

“The conduct admitted by Mayor Blanco demonstrates an aggressive and appalling greed,” U.S. Attorney Fishman said. “By soliciting these payments from developers, he took for himself federal money that was intended to help provide housing for the city’s poorest residents. We expect our public officials to behave differently.”

“Public corruption is one of the FBI's top priorities,” Special Agent in Charge Timothy Gallagher of the FBI Newark Division said. “Today's guilty plea by Passaic Mayor Alex Blanco is indicative of how diligently the FBI and our law enforcement partners work corruption matters. We will continue to investigate allegations of public corruption thoroughly to ensure any person who misuses their public office for private gain is held accountable.”

“The mayor’s guilty plea is a testament to the hard work and dedication of our special agents and their law enforcement colleagues—job well done,” Special Agent in Charge Terence S. Opiola, Homeland Security Investigations, Newark Field office, said.

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

From 2010 through 2012, two developers were seeking to build eight low-income residential units on property they owned in Passaic. After the Passaic City Council and the Passaic Zoning Board of Adjustment granted approval, Blanco – who has been mayor since November 2008 – had an intermediary approach the developers in July 2011. The developers were told they were expected to provide a sizable payment to the mayor to ensure that the project would proceed.

A short time later, the Passaic City Council approved the release of $216,400 in Housing and Urban Development (HUD) funds to the developers, money that had been earmarked for the project. In early September 2011, Blanco arranged for a meeting with the developers at which he solicited and agreed to accept $75,000. The next day, he arranged for a meeting with one of the developers in Clifton, New Jersey, and asked for the corrupt payment in cash, but was told by the developer that the developer had brought signed, blank checks, which could be made out to payees of Blanco’s choosing. Blanco obtained those checks – totaling $65,000 – once the payee lines had been filled in, arranged for them to be cashed, and pocketed the cash proceeds.

About eight days later, Blanco arranged for another meeting in Passaic with one of the developers and solicited and accepted two additional checks totaling $40,000, proceeds of which were ultimately provided to Blanco in cash. In March 2012, Blanco accepted cash proceeds from an additional $5,000 check solicited on his behalf. Much of the $110,000 in corrupt payments was derived from the HUD monies that had been released to the developers in 2011.

The charge to which Blanco pleaded guilty carries a maximum potential penalty of 10 years in prison and a fine of $250,000 or twice the gross gain or loss caused by the offense.  Sentencing is scheduled for Feb. 23, 2017.

U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Gallagher; and special agents of the U.S. Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Opiola, with the investigation leading to today’s guilty plea. He also thanked special agents of the Office of Inspector General, U.S. Department of Housing and Urban Development, under the direction of Special Agent in Charge Christina Scaringi, for their assistance in the investigation. 

The government is represented by Assistant U.S. Attorneys Mark J. McCarren and José R. Almonte of the U.S. Attorney’s Office Special Prosecutions Division in Newark and Assistant U.S. Attorney James M. Donnelly of the Criminal Division in Newark.

Defense attorneys: Joseph A. Hayden Jr. Esq., and Aidan P. O’Connor Esq., Hackensack, New Jersey    

NEWARK, N.J. – Twelve men were charged as part of a scheme that used secret card-reading devices and pinhole cameras installed on PNC and Bank of America ATMs to steal at least $428,581, U.S. Attorney Paul J. Fishman of the District of New Jersey and Assistant Attorney General Leslie R. Caldwell of the Criminal Division announced today.

Bogdan Viorel Rusu, 36, of Howard Beach, New York; Marcel Peckham, a/k/a “Marcel Enescu Cismas,” 43, of Little Neck, New York; Catalin Mihai Dragomir, 32, of Glendale, New York; Eduard Vasilica Ticu, 28, of Glendale; Stefan Dumitru, 28, of Astoria, New York; 39, an unidentified defendant known as “Zoltan Nagy,” 39  of Bayside, New York; Silvester Florentin Papp, 24, of Ridgewood, New York; Joel Abel Garcia, 34, of Bronx, New York; Vasilica Adrian Hanganu, 35, of Bayside; Florian Calin Crainic, 46, of Des Plaines, Illinois; Gabriel Mares, 43, of College Point, New York; and his brother Florin Mares, 48, of College Point, are each charged by complaint with one count of conspiracy to commit bank fraud.

All of the defendants were arrested yesterday and this morning, with the exception of Nagy, who is still at large. Those who were apprehended, with the exception of Crainic, appeared this afternoon before U.S. Magistrate Judge Cathy L. Waldor in Newark federal court. Crainic was scheduled to appear today in Illinois federal court.

According to the complaint:

The scheme, which was allegedly led by Rusu, sought to defraud financial institutions and their customers by illegally obtaining customer account information, including account numbers and personal identification numbers. Between March 2015 and July 2016, the conspirators allegedly installed electronic equipment at ATMs at several banks across New Jersey.  The “skimming” equipment included pinhole cameras and electronic devices capable of recording bank customer information encoded on the magnetic stripe of credit and debit cards.

The conspirators then transferred the stolen card data to counterfeit bank cards and subsequently used that data to withdraw cash from the compromised accounts.  For example, on one occasion in January 2016, one of the defendants used counterfeit ATM cards encoded with stolen bank account information at four different Bank of America locations on the same day.

The conspirators are alleged to have stolen at least $428,581 from Bank of America.

U.S. Attorney Fishman and Assistant Attorney General Caldwell credited special agents of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), under the direction of Special Agent in Charge Terence Opiola in Newark, as well as the U.S. Secret Service’s Boston and New York field offices and the East Longmeadow, Cambridge, and Medford, Massachusetts, police departments with the investigation. They also thanked the Middlesex County, Massachusetts, DA’s office; the U.S. Attorney’s Office of the Eastern District of New York and the U.S. Attorney’s Office, District of Massachusetts Springfield Division, as well as the Bank of America Security and Fraud Section, the PNC Bank Security Division and TD Bank, for their assistance in this case.

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

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

NEWARK, N.J. – Twelve men were charged as part of a scheme that used secret card-reading devices and pinhole cameras installed on PNC and Bank of America ATMs to steal at least $428,581, U.S. Attorney Paul J. Fishman of the District of New Jersey and Assistant Attorney General Leslie R. Caldwell of the Criminal Division announced today.

Bogdan Viorel Rusu, 36, of Howard Beach, New York; Marcel Peckham, a/k/a “Marcel Enescu Cismas,” 43, of Little Neck, New York; Catalin Mihai Dragomir, 32, of Glendale, New York; Eduard Vasilica Ticu, 28, of Glendale; Stefan Dumitru, 28, of Astoria, New York; 39, an unidentified defendant known as “Zoltan Nagy,” 39  of Bayside, New York; Silvester Florentin Papp, 24, of Ridgewood, New York; Joel Abel Garcia, 34, of Bronx, New York; Vasilica Adrian Hanganu, 35, of Bayside; Florian Calin Crainic, 46, of Des Plaines, Illinois; Gabriel Mares, 43, of College Point, New York; and his brother Florin Mares, 48, of College Point, are each charged by complaint with one count of conspiracy to commit bank fraud.

All of the defendants were arrested yesterday and this morning, with the exception of Nagy, who is still at large. Those who were apprehended, with the exception of Crainic, appeared this afternoon before U.S. Magistrate Judge Cathy L. Waldor in Newark federal court. Crainic was scheduled to appear today in Illinois federal court.

According to the complaint:

The scheme, which was allegedly led by Rusu, sought to defraud financial institutions and their customers by illegally obtaining customer account information, including account numbers and personal identification numbers. Between March 2015 and July 2016, the conspirators allegedly installed electronic equipment at ATMs at several banks across New Jersey.  The “skimming” equipment included pinhole cameras and electronic devices capable of recording bank customer information encoded on the magnetic stripe of credit and debit cards.

The conspirators then transferred the stolen card data to counterfeit bank cards and subsequently used that data to withdraw cash from the compromised accounts.  For example, on one occasion in January 2016, one of the defendants used counterfeit ATM cards encoded with stolen bank account information at four different Bank of America locations on the same day.

The conspirators are alleged to have stolen at least $428,581 from Bank of America.

U.S. Attorney Fishman and Assistant Attorney General Caldwell credited special agents of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), under the direction of Special Agent in Charge Terence Opiola in Newark, as well as the U.S. Secret Service’s Boston and New York field offices and the East Longmeadow, Cambridge, and Medford, Massachusetts, police departments with the investigation. They also thanked the Middlesex County, Massachusetts, DA’s office; the U.S. Attorney’s Office of the Eastern District of New York and the U.S. Attorney’s Office, District of Massachusetts Springfield Division, as well as the Bank of America Security and Fraud Section, the PNC Bank Security Division and TD Bank, for their assistance in this case.

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

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

Twelve individuals were charged with allegedly executing a scheme to defraud customers of Bank of America and PNC Bank through conduct known as “ATM skimming,” according to complaints that were unsealed following the arrest of the majority of the defendants, announced Assistant Attorney General Leslie R. Caldwell of the Criminal Division and U.S. Attorney Paul J. Fishman of the District of New Jersey

Bogdan Viorel Rusu, 36, of Howard Beach, New York; Marcel Peckham, aka Marcel Enescu Cismas, 43, of Little Neck, New York; Catalin Mihai Dragomir, 32, of Glendale, New York; Eduard Vasilica Ticu, 28, also of Glendale; Stefan Dumitru, 28, of Astoria, New York; an unidentified defendant, known as Zoltan Nagy, 39, of Bayside, New York; Silvester Florentin Papp, 24, of Ridgewood, New York; Joel Abel Garcia, 34, of Bronx, New York; Gabriel Mares, 43, of College Point, New York; Florian Calin Crainic, 46, of Des Plaines, Illinois; Florin Mares, 48, also of College Point; and Vasilica Adrian Hanganu, 35, also of Bayside, are each charged by complaint with one count of conspiracy to commit bank fraud.  All of the defendants have been arrested, with the exception of Nagy, who remains at large.

According to the complaint, the co-conspirators – led by Rusu – sought to defraud financial institutions and their customers by illegally obtaining customer account information, including account numbers and personal identification numbers.  Between March 2015 and July 2016, the co-conspirators allegedly installed electronic equipment at ATMs at several banks across New Jersey.  The “skimming” equipment allegedly included pinhole cameras and electronic devices capable of recording bank customer information encoded on the magnetic stripe of credit and debit cards.  The co-conspirators allegedly transferred the stolen card data to counterfeit bank cards and subsequently used that data to withdraw cash from the compromised accounts using various means.  For example, on one occasion in January 2016, one of the defendants used counterfeit ATM cards encoded with stolen bank account information at four different Bank of America locations on the same day. 

The co-conspirators are alleged to have stolen at least $428,000 from Bank of America customers in New Jersey.

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

NEWARK, N.J. – A Florida man has been charged in connection with his role in establishing fake medical facilities in New Jersey and billing insurance companies for services that were never performed, U.S. Attorney Paul J. Fishman announced.

Eduardo Arango Chong, 21, of Hialeah, Florida, was arrested Nov. 15, 2016, and will appear today before U.S. Magistrate Judge Cathy L. Waldor in Newark federal court. He was charged by complaint, along with Osmaro Ruiz, 31, of Homestead, Florida, with one count of conspiracy to commit health care fraud. Ruiz remains at large. Another conspirator, Raymel Betancourt, 25, was charged with healthcare fraud in a separate complaint in June 2015. 

According to the complaint:

From September 2014 through June 26, 2015, the defendants allegedly established fictitious health service providers in Union County, New Jersey, and elsewhere. These “phantom providers” repeatedly submitted false claims to insurance companies for medical services, including injections and physical therapy services, that were never actually performed. They allegedly submitted claims for more than $6 million and the insurance companies paid hundreds of thousands of dollars to the phantom providers.

The defendants allegedly recruited people with legitimate health insurance policies from real companies, offering them money in exchange for allowing the phantom providers to use this information.

The fake providers also used health insurance information for individuals who were not aware that fraudulent claims were being submitted on their behalf. The conspirators logged on to an electronic healthcare network used by medical practices to check patient insurance coverage. They used valid member IDs and then entered a series of consecutive potential member IDs until one of the numbers was linked to someone with a valid health insurance plan and accepted by the network. 

Checks and proceeds issued by the insurance companies were cashed or deposited into bank accounts established by the conspirators.

The counts of conspiracy to commit health care fraud with which the defendants are charged carry a maximum potential penalty of 10 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense.

U.S. Attorney Fishman credited special agents of the U.S. Postal Inspection Service, under the direction of Inspector in Charge Maria L. Kelokates, and special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher, with the investigation leading to the charges.

The government is represented by Assistant U.S. Attorney Karen D. Stringer of the Criminal Division.

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 $1.29 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 charges and allegations in the complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.

NEWARK, N.J. – A high-ranking member of the international street gang “Mara Salvatrucha” (also known as MS-13) was sentenced today to 13 years in prison for participating in a racketeering conspiracy, which included acts of extortion, drug distribution, and conspiracy to commit murder, U.S. Attorney Paul J. Fishman announced today.

Joel Antonio Cortez, a/k/a “Pee Wee,” 42, who is currently serving a state prison sentence in California, was sentenced today by U.S. District Court Judge Stanley R. Chesler to 156 months in prison.  Cortez previously pleaded guilty to one count of racketeering conspiracy.

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

Cortez and Amilcar Romero, a/k/a “Chi Chi,” 47, served as the top deputies to Jose Juan Rodriguez-Juarez, 34, the alleged leader of MS-13’s “national program,” which was an effort to bring all local MS-13 sets, or “cliques,” operating in the United States under a single, cohesive leadership structure.

By autumn 2013, Rodriguez-Juarez had assigned Romero to serve as the primary point-of-contact between the leadership of Mara Salvatrucha in the United States and El Salvador, while Cortez assumed responsibility for recruiting Mara Salvatrucha cliques on the east coast of the United States to join the national program.  Both are also alleged to have ordered acts of violence, including Cortez’s authorization of a November 2013 murder plot in Hudson County.  Law enforcement learned of the murder plot during the course of the investigation and arrested the New Jersey-based conspirators before it could be completed.  Cortez and Romero also ordered east coast-based gang members to collect money on behalf of the gang by force and violence.

In addition, Romero and Cortez collaborated with MS-13 gang leaders in New Jersey, Virginia, Maryland, and elsewhere to establish a distribution chain for cheap Mexican cartel drugs, including heroin and crystal methamphetamine.  Part of the profit from that drug distribution chain would then be funneled back to the gang’s leadership in California to further promote the gang’s criminal activity.

Cortez is currently serving a 22-year prison sentence imposed in California State court in 2004 for second-degree robbery. Cortez’s federal sentence will run concurrently with his state sentence.

Romero previously pleaded guilty to one count of racketeering conspiracy.  He was sentenced by Judge Chesler to five years in prison, which will be served consecutively to a 44-year prison sentence imposed by California state court in 1997 for attempted murder.

Rodriguez-Juarez pleaded guilty to one count of racketeering conspiracy and one count of conspiracy to distribute controlled substances. He has yet to be sentenced.

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 investigation also involved substantial assistance from multiple FBI field offices, including the Los Angeles, California, office.  U.S. Attorney Fishman also thanked the Hudson County Prosecutor’s Office, under the direction of Prosecutor Esther Suarez, and the Union County Prosecutor’s Office, under the direction of Acting Prosecutor Grace H. Park, for their work on this case.  He also acknowledged the U.S. Attorney’s Office for the Central District of California for its 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.

Defense counsel:

Cortez:  Howard B. Brownstein, Esq., Union City, New Jersey

Romero: John P. McDonald Esq., Somerville, New Jersey

Rodriguez-Juarez: E. Alexander Jardines, Esq., Union City, New Jersey

NEWARK, N.J. – Four 18th Street gang members from Bergen County, New Jersey, and Rockland County, New York, were charged today with various offenses arising from their armed robbery of a Hawthorne, New Jersey, bar and the violent carjacking of a taxi that took place shortly afterwards, U.S. Attorney Paul J. Fishman announced.

Wilbur Jonathan Barahona, 20, of Ridgewood, New Jersey, Guillermo Carillo-Iraheta, 19, of Suffern New York, Juan Chiliseo-Vega, 19, of Suffern, and Jostin Reyes, 21, of Waldwick, New Jersey, were charged by complaint with conspiracy to commit Hobbs Act Robbery, carjacking, use of a firearm during a crime of violence, and kidnapping. All four appeared this afternoon before U.S. Magistrate Judge Cathy L. Waldor in Newark federal court. 

Balmore Carillo-Iraheta, 19, of Suffern, and Oscar Avalos-Cortez, 22, of New City, New York, are also charged in the same complaint with conspiracy to commit Hobbs Act robbery. They had their initial appearances before U.S. Magistrate Judge Mark Falk on Nov. 1, 2016 and U.S. Magistrate Judge James B. Clark on Nov. 10, 2016, respectively. All six defendants, with the exception of Avalos-Cortez, have been detained. Avalos-Cortez was released on a $150,000 unsecured bond.

According to the complaint:

On Dec. 25, 2016, Barahona, Guillermo Carillo-Iraheta, Chiliseo-Vega, Reyes, Balmore Carillo-Iraheta, and Avalos-Cortez robbed a bar at gunpoint in Hawthorne, New Jersey, while Avalos-Cortez operated the getaway vehicle.

Later that evening, Barahona, Guillermo Carillo-Iraheta, Chiliseo-Vega, and Reyes robbed a taxicab driver at gunpoint, hit the taxicab driver in the head with a beer bottle, and sliced his throat with a knife before leaving him on the side of the New York State Thruway near Woodbury, New York. The taxicab driver survived. 

The kidnapping charge carries a maximum potential penalty of life imprisonment. The carjacking charge carries a maximum potential penalty of 25 years in prison. The conspiracy charge carries a maximum potential penalty of up to 20 years in prison. The charge of brandishing a weapon in connection with the carjacking offense carries a mandatory penalty of seven years in prison.

U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, as well as the Ridgewood and Hawthorne Police Departments, with the investigation leading to the charges.

The government is represented by Assistant U.S. Attorney Karen D. Stringer 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 defendants are considered innocent unless and until proven guilty.

NEWARK, N.J. – MedNet Inc., a Ewing, New Jersey-based remote cardiac monitoring company and a subsidiary of BioTelemetry Inc., has agreed to pay more than $1.35 million to resolve allegations that it paid kickbacks to induce physicians to use the company’s cardiac monitoring services, U.S. Attorney Paul J. Fishman announced today.

According to settlement agreement:

From March 15, 2006, through Jan. 31, 2014, before BioTelemetry acquired MedNet, MedNet entered into “fee-for-service” or “direct-bill” agreements with certain hospital and physician clinic customers. MedNet charged a fee to the customers for certain services that the company performed in connection with event monitoring and telemetry, two types of cardiac monitoring services. MedNet allowed the customers to bill Medicare directly for these same services and retain the reimbursements they received from Medicare, which exceeded the fee that MedNet charged them.

These agreements resulted in a net profit to MedNet’s customers who submitted claims to Medicare in accordance with the agreements, primarily for services that MedNet — and not the customers — performed. The government contends that MedNet entered these agreements and provided this remuneration to these customers in order to induce referrals from those customers for MedNet’s services.

The government alleges that the remuneration MedNet provided in connection with the agreements was illegal remuneration under the Anti-Kickback Statute. As a result, MedNet caused to be submitted to Medicare false claims for cardiac monitoring services provided to patients of its customers.

The allegations were raised in a lawsuit filed under the qui tam, or whistleblower, provisions of the False Claims Act. The act allows private citizens with knowledge of fraud to bring civil actions on behalf of the government and to share in any recovery.

The settlement is the culmination of an investigation conducted by 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, and the FBI, under the direction of Newark Special Agent in Charge Timothy Gallagher.

The government is represented by Assistant U.S. Attorneys Bernard J. Cooney and Nicole F. Mastropieri 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 claims settled by this agreement are allegations only, and there has been no determination of liability.

TRENTON, N.J. – A Windermere, Florida, man today admitted using phony invoices to fraudulently obtain over $1.5 million from a factoring company in Bergen County, New Jersey, U.S. Attorney Paul J Fishman announced.

Jerry Guidice, 57, pleaded guilty before U.S. District Judge Anne E. Thompson in Trenton federal court to an information charging him with wire fraud.  

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

In July 2015, Guidice had a trucking company he owned enter into an agreement with a Bergen County factoring company. Pursuant to the agreement, the trucking company would assign some of its accounts receivable to the factoring company in return for short-term financing.

However, Guidice sought to defraud the factoring company by emailing fraudulent invoices for trucking services that were never actually performed by his company. As a result of the invoices, the factoring company transferred more than $1.5 million to Guidice’s company from September 2015 through February 2016.

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

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

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

Defense counsel: Christopher Atcachunas Esq., Orlando, Florida

CAMDEN, N.J. – Two pharmacists were arrested today and charged 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.

Michael Ludwikowski, 44, of Medford, and David Goldfield, 58, of Medford Lakes, New Jersey, were charged in a 16-count indictment with conspiracy to illegally distribute and dispense oxycodone and other Schedule II controlled substances, maintaining a drug-involved premises, and multiple substantive counts of illegal distribution. Ludwikowski was also charged with using his cellphone in furtherance of the conspiracy. Both defendants are scheduled to appear this afternoon before U.S. Magistrate Judge Joel Schneider in Camden federal court.

“There is a real opioid epidemic in the United States, one that’s responsible for personal tragedy, widespread suffering, and enormous financial loss,” U.S. Attorney Fishman said. “Doctors, pharmacists, and other health care professionals have a unique opportunity to address this epidemic by ensuring prescription opiates are dispensed only for legitimate medical purposes. Instead, Ludwikowski and Goldfield allegedly chose to exacerbate the problem by selling opiates to customers with fake prescriptions or to individuals whom they knew to be addicts.”

“Opioid and prescription drug abuse is sweeping the country. By allegedly participating in a conspiracy to distribute oxycodone within our community, the defendants engaged in a behavior that ultimately contributes to this epidemic,” said Special Agent in Charge Timothy Gallagher. “Today's arrests are not only a victory for the FBI and our partners, but for everyone who confronts the tragic outcomes of opioid addiction and abuse.”

Carl J. Kotowski, Special Agent in Charge of the Drug Enforcement Administration (DEA)’s New Jersey Division said, “Unfortunately, this is another alleged case of two pharmacists violating the public trust. They should have been doing their part to help in the reduction of the opioid epidemic we are facing. Instead, based on the charges, they have played a part in adding to the epidemic.”

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

From March 2008 through August 2013, Ludwikowski, the owner of both Olde Medford Pharmacy and Medford Family Pharmacy, and his employee, Goldfield, knowingly distributed and dispensed oxycodone and other controlled substances to individuals, including addicts, who presented phony prescriptions.

Ludwikowski ordered tens of thousands of dosage units of oxycodone, among other products, from a large national distributor. The distributer established thresholds for the quantity of controlled substances that it supplied to certain pharmacies. These thresholds could not be exceeded unless a pharmacy provided sufficient justification for an increase. As part of the conspiracy, Ludwikowski fraudulently requested and received increases to the thresholds of oxycodone supplied to his pharmacies, even though he knew they were not going to be used for legitimate medical reasons.

In some instances, the customers presented fraudulent prescriptions that had been blatantly “washed,” or “bleached,” 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. Ludwikowski and Goldfield even allegedly ignored concerns raised by an employee who pointed out an obviously altered prescription.

Customers who used the fraudulent prescriptions generally paid in cash and provided gifts to Ludwikowski and Goldfield. In some instances, these customers filled fraudulent prescriptions for oxycodone multiple times a week.

In furtherance of the scheme, Ludwikowski and another pharmacist he employed – referred to in the indictment as “Pharmacist 3” – reached an agreement with a physician –referred to in the indictment as “Doctor 1” – to “steer” Doctor 1’s patients to Ludwikowski’s pharmacies. In a text message from Pharmacist 3 to Ludwikowski on Jan. 11, 2013, Pharmacist 3 wrote: “I talked to [Doctor 1] and he is going to direct all of his patients to us he is the pain doc in Cherry Hill.”

Following that exchange, Ludwikowski received a voicemail from an individual referred to in the indictment as “Individual 3” who claimed to be a patient of Doctor 1 and was looking for a monthly supplier. After Ludwikowski passed along his number to Pharmacists 3, Individual 3 was able to fill prescriptions for oxycodone and other controlled substances at Olde Medford Pharmacy or Medford Family Pharmacy.

In another instance, a Pennsylvania resident referred to in the indictment as “Individual 4” informed Ludwikowski that he was “in a bit of a pickle” because he had been unable to fill a prescription written by Doctor 1 in Pennsylvania, but had heard that Ludwikowski would be able to help. Subsequently, Individual 4 was able to acquire oxycodone and other controlled substance prescriptions from Ludwikowski’s pharmacies.

The conspiracy charge and each substantive count of illegal distribution of oxycodone and other Schedule II controlled substances 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. The count of using a telephone in furtherance of the drug trafficking crimes carries a maximum penalty of four years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. The counts of maintaining a drug-involved premises each carry a maximum penalty of 20 years in prison and a $500,000 fine, or twice the gross gain or loss from the offense.

U.S. Attorney Fishman credited special agents of the FBI’s Newark Field Office, under the direction of Special Agent in Charge Gallagher; the DEA New Jersey Division, under the direction of Special Agent in Charge 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.

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

NEWARK, N.J. – Attorney General Loretta E. Lynch recognized 376 department employees for their distinguished public service today at the 64th Annual Attorney General’s Awards Ceremony.  Forty-seven other individuals outside of the department were also honored for their work.  This annual ceremony recognizes individuals for their outstanding service and dedication to carrying out the missions of the Department of Justice. 

In the District of New Jersey, three individuals – Counsel to the U.S. Attorney John M. Fietkiewicz and Assistant U.S. Attorneys Dennis C. Carletta and Peter W. Gaeta – were honored with awards.

“The Attorney General’s Awards provide us with a rare opportunity to honor the efforts of outstanding department employees and our invaluable partners across the federal government and at the state and local levels,” Attorney General Lynch said.  “Their work has made our nation – and our world – stronger, safer and more just, and I am proud of and inspired by each and every one of them.”

“I’m enormously proud of the three attorneys from our office who are being honored with these awards,” U.S. Attorney Paul J. Fishman, District of New Jersey, said. “John, Dennis and Peter exemplify the outstanding professionalism and commitment to justice we strive for every day. These awards honor them, but also all of the men and women in our office, who work so hard every day on behalf of the people of New Jersey and across the country.”

In the District of New Jersey, the following individuals were recognized for the following awards:

The Claudia J. Flynn Award for Professional Responsibility recognizes a department attorney who has made significant contributions in the area of professional responsibility by successfully handling a sensitive and challenging professional responsibility issue in an exemplary fashion and/or leading efforts to ensure that department attorneys carry out their duties in accordance with the rules of professional conduct.

Fietkiewicz is recognized for his sustained, outstanding leadership and invaluable contributions to ensure that department prosecutors carry out their duties in compliance with the highest ethical standards.  With superior dedication and effort, he has gone to extraordinary lengths to advise and train innumerable department prosecutors, providing the tools and resources necessary to perform their work in the most ethical and professional way possible.  With his considerable experience and exceptional judgment, he is leading the district in successfully addressing the overlap between the legal and ethical duty of disclosure, one of the most important professional responsibility issues facing federal prosecutors in decades.  His unfailing commitment to upholding and inspiring others to the highest standards of professionalism has been a model to his peers within and outside the department.  He worked closely with Claudia Flynn during her service at the department, and he embodies the integrity, professionalism and strength of character that marked Flynn’s life and work.

The Attorney General’s Award for Excellence in Law Enforcement recognizes outstanding professional achievements by law enforcement officers of the Department of Justice.

The award recognizes, from the U.S. Attorney’s Office of the District of New Jersey, Assistant U.S. Attorneys Carletta and Gaeta.

In December 2011, the FBI opened a five-year investigation into ABN Universal Inc.  Early investigative techniques revealed the U.S.-based owner and operator of ABN was Alexander Brazhnikov.  Through an exhaustive use of human sources, video surveillance, forensic reconstruction, grand jury subpoenas, search warrants, Title III surveillance of emails and computer analysis, the investigation revealed that ABN was procuring dual-use microelectronics from U.S.-based manufacturers on behalf of Russian companies directly associated with the Russian military and intelligence services.  Moreover, employees of ABN were devaluing the price of exported products to Russia and using front company addresses in Moscow, an offshore virtual private network and an international network of shell companies to conceal the intended end-users from U.S. law enforcement.  The investigative team worked diligently to overcome each of these obfuscation techniques to ultimately reveal the totality of Brazhnikov’s criminal offenses.  As a result of the investigation, in June 2014, an arrest warrant for Brazhnikov was issued for his illegal smuggling of export controlled U.S.-sourced goods to Russia and for conducting $65 million in money laundering.  In June 2015, Brazhnikov pleaded guilty to conspiracy to smuggle goods from the U.S., conspiracy to commit money laundering and conspiracy to violate the International Emergency Economic Powers Act.  Brazhnikov also admitted to smuggling microelectronics to Russian defense contractors known to supply the Russian military and intelligence services, to include two Russian nuclear warhead design institutes.  As a result of his guilty plea, the District Court of New Jersey issued a money judgment against Brazhnikov for $65 million.

NEWARK, N.J. – A Queens, New York, man today admitted his role in a scheme to distribute controlled substance analogues, which are designer drugs that have chemical structures and hallucinogenic effects similar to Schedule I controlled substances, U.S. Attorney Paul J. Fishman announced.           

Elmostafa Charif, 37, pleaded guilty before U.S. District Judge Kevin McNulty to a two-count indictment charging him with conspiracy to distribute, and possessing with intent to distribute, the controlled substance analogues NM2201 and 5F-AMB. NM2201 and 5F-AMB are most closely related to synthetic Tetrahydrocannabinol, or THC.

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

Since February 2011, the Drug Enforcement Administration (DEA) has been investigating the importation, distribution, and use of designer drugs popularly known as synthetic cannabinoids. “K2” and “Spice” are common examples of synthetic cannabinoids.

Synthetic cannaboids are created when damiana leaves – an inert, plant-like substance – are sprayed with controlled substance analogues and treated with synthetic flavoring. The flavored and treated damiana leaves are then smoked by users.

Charif admitted that, on April 13, 2015, he conspired with others to purchase and distribute approximately 10 kilograms of synthetic cannabinoids, including approximately five kilograms of NM2201 and approximately five kilograms of 5F-AMB. Charif also admitted that he purchased liquid flavoring and damiana leaves with the controlled substance analogues, knowing that they would be used to create a product that was smoked or otherwise consumed by users.

NM2201 and 5F-AMB are each controlled substance analogues as defined under the Analogue Act due to the fact that both NM2201 and 5F-AMB have chemical structures and hallucinogenic properties similar to the Schedule I controlled substances 5F-PB-22 and ADB-PINACA, respectively.

Both counts of the indictment to which Charif 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 Feb. 22, 2017.   

U.S. Attorney Fishman credited special agents of the DEA, under the direction of Special Agent in Charge Carl J. Kotowski, with the investigation leading to today’s plea. 

The government is represented by Assistant U.S. Attorney Melissa Wangenheim of the Organized Crime Drug Enforcement Task Force Unit in Newark.

Defense counsel:  Aaron Wallenstein, Esq. 

NEWARK, N.J. – A Bound Brook, New Jersey, man today admitted robbing five banks and attempting to rob another between June 2014 and June 2015, U.S. Attorney Paul J. Fishman announced.

Luis Castaneda, 40, pleaded guilty before U.S. District Judge Madeline Cox Arleo in Newark federal court to an information charging him with six counts of bank robbery and one count of brandishing a firearm in furtherance of one of the robberies.

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

Castaneda admitted that between June 6, 2014 and June 12, 2015, he robbed or attempted to rob six banks, all in New Jersey:

Date

Financial Institution

Location

June 6, 2014

County Educators Federal Credit Union

Somerville

Dec. 3, 2014

Manville Area Federal Credit Union

Manville

March 19, 2015

Public Service Credit Union

Middlesex

May 9, 2015

Peapack-Gladstone Bank (Attempt)

Piscataway

May 9, 2015

Unity Bank

Whitehouse Station

June 12, 2015

Somerset Savings Bank

Somerset

Castaneda admitted that during each of the above robberies, he and others threatened to use force while demanding money from the bank employees. He also admitted that during the Somerset Savings Bank robbery on June 12, 2015, he brandished a firearm in order to intimidate one or more of the bank employees.

The bank robbery charges to which Castaneda pleaded guilty each carry a maximum penalty of 20 years in prison and a $250,000 fine. The charge of brandishing a firearm carries a mandatory minimum sentence of seven years to be served consecutively to any other sentence imposed. Sentencing is scheduled for Feb. 15, 2016.

U.S. Attorney Fishman credited special agents of the FBI Franklin Township Resident Agency, under the direction of Special Agent in Charge Timothy Gallagher in Newark, with the investigation leading to today’s guilty plea.  He also thanked the Somerset County Prosecutor’s Office, the Middlesex County Prosecutor’s Office, and the Hunterdon County Prosecutor’s Office, as well as the Somerville, Manville, Piscataway, Readington Township, Middlesex Borough, and Bound Brook police departments for their contributions to the case.

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

Defense counsel: John Azzarello Esq.

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

NEWARK, N.J. – A former top official of the Port Authority of New York and New Jersey and a former member of Gov. Christopher J. Christie’s senior staff were convicted today for their roles in a scheme to punish the mayor of Fort Lee, New Jersey, by misusing Port Authority resources to cause traffic problems in the borough.

William E. Baroni Jr., 44, former deputy executive director of the Port Authority, and Bridget Anne Kelly, 44, former deputy chief of staff to Gov. Christie, were each convicted on all seven counts with which they had been charged in an indictment returned May 1, 2015, by a federal grand jury. The jury deliberated less than four days following a six-week trial before U.S. District Judge Susan D. Wigenton in Newark federal court.

“We are gratified that the members of the jury saw the evidence the way we saw it and reached their verdict of guilty today,” U.S. Attorney Paul J. Fishman said. “This was a long and difficult investigation, and I am so proud of the way the members of my office, the FBI and the Port Authority Inspector General conducted themselves in the course of this case.”

“The citizens of the state of New Jersey have a right to expect and deserve honest services from their government, and the FBI and our law enforcement partners remain dedicated to ensuring they receive it,” FBI Special Agent in Charge Timothy Gallagher of the Newark office said.

“We are extremely pleased with the jury’s verdict in this matter,” Michael Nestor, Inspector General of the Port Authority of New York and New Jersey, said. “I want to express my gratitude to the U.S. Attorney’s Office, FBI and Office of Inspector General staff on the tremendous effort they all made resulting in the verdict.”

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

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

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

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

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

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

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

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

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

On the count of conspiracy to misuse property of an organization receiving federal benefits, the three defendants each face a maximum potential penalty of five years in prison and a fine of $250,000. On the count of misusing property of an organization receiving federal benefits, the defendants each face a maximum potential penalty of 10 years in prison and a fine of $250,000. On each of the wire fraud conspiracy and wire fraud counts, the defendants face a maximum potential penalty of 20 years in prison and a fine of $250,000 per count. On the count of conspiring to injure and oppress certain individuals’ civil rights, the defendants and Wildstein each face a maximum potential penalty of 10 years in prison and a fine of $250,000. On the count of acting under color of law to deprive certain individuals of their civil rights, the defendants face a maximum potential penalty of one year in prison and a fine of $250,000.

Sentencing is scheduled for Feb. 21, 2017.

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

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

Defense counsel:

William E. Baroni: Michael Baldassare Esq., Newark

Bridget Anne Kelly: Michael Critchley Sr. Esq., Roseland, New Jersey

TRENTON, N.J. – A Bayonne, New Jersey, man was sentenced today to 15 months in prison for paying $65,000 in bribes to a Bayonne public official in return for the public official’s assistance in securing projects funded by the U.S. Department of Housing and Urban Development, U.S. Attorney Paul J. Fishman announced. 

Joseph Arrigo, 47, previously pleaded guilty before U.S. District Judge Peter G. Sheridan to an information charging him with one count of paying bribes totaling approximately $65,000 to Anselmo Crisonino, 56, also of Bayonne, who served as the senior accountant of the City of Bayonne Department of Community Development (CBDCD). Arrigo had also pleaded guilty to one count of theft and conversion of government funds in the amount of $40,000, and one count of submitting a false tax return for tax year 2011. Judge Sheridan imposed the sentence today in Trenton federal court.

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

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

In September 2010, Crisonino solicited cash payments from Arrigo in exchange for Crisonino’s help in attaining HUD grant funds. From September 2010 to February 2013, Arrigo made approximately $65,000 in cash payments to Crisonino in exchange for Crisonino’s assistance in awarding approximately $426,000 in HUD grant funds to Arrigo from the CBDCD.

In September 2011, Arrigo assisted another contractor by supplying a bid on behalf of Shadow Contracting that was higher than the contractor’s bid to enable the other contractor to obtain HUD grant funds from Bayonne. The contractor then submitted the two bids to the CBDCD and, as a result of his collusion with Arrigo, the contractor fraudulently obtained $20,000 in HUD grant funds from the CBDCD. In December 2011, Arrigo caused the same contractor to provide Arrigo with a bid that was higher than Arrigo’s bid for the purpose of obtaining HUD grant funds. Arrigo submitted the contractor’s bid along with his own to the CBDCD and, as a result, fraudulently obtained another $20,000 in HUD grant funds from the CBDCD.

Arrigo also admitted that he failed to report $151,993 in income on his U.S. Individual Tax Return, Form 1040, for tax year 2011.

In addition to the prison term, Judge Sheridan sentenced Arrigo to three years of supervised release.

Crisonino previously pleaded guilty to his role in the bribery scheme and other charges in February 2014 and awaits sentencing.

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

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

Defense counsel: Charles J. Uliano Esq., West Long Branch, New Jersey

TRENTON, N.J. – The former chief financial officer of a Bergen County business was sentenced today to 36 months in prison for embezzling millions of dollars and evading taxes, U.S. Attorney Paul J. Fishman announced.

Gomidas Garabed Hartounian, 52, of Franklin Lakes, New Jersey, previously pleaded guilty before U.S. District Judge Peter G. Sheridan to a superseding information charging him with one count of wire fraud and one count of tax evasion. Judge Sheridan imposed the sentence today in Trenton federal court.

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

From April 2007 through April 2014, Hartounian was the CFO for “Company A,” a for-profit company with its principal place of business in Englewood, New Jersey. Hartounian is also the sole owner of MGB LLC, a company registered to his residence. Hartounian fraudulently designated MGB as a vendor in Company A’s accounting system without disclosing that he controlled MGB. He directed Company A employees to issue checks to MGB for freight services that MGB supposedly provided Company A. When asked for the MGB invoices, he claimed that he was maintaining them in his office.

Because Hartounian didn’t have sole signatory power, he forged the signatures of the chief executive officer or the chief operating officer before depositing the checks into bank accounts that he controlled. Hartounian also had checks issued directly from Company A bank accounts to pay for his personal expenses, including real estate taxes to the Borough of Franklin Lakes for $6,562 in August 2011.

Hartounian also admitted that he filed a false federal tax return, Form 1040, for the calendar year 2012 in which he knowingly did not report $1.29 million in income that he received as the sole owner of MGB.  Instead, Hartounian falsely understated his income for 2012 as $133,290.

In addition to the prison term, Judge Sheridan sentenced Hartounian to three years of supervised release. Hartounian must also pay restitution of $4,117,463, which includes $3.5 million to the victim company and $617,463 to the IRS.

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

The government is represented by Assistant U.S. Attorney Shana W. Chen of the U.S. Attorney’s Office Economic Crimes Unit in Newark.

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: Alan Silber Esq., Roseland, New Jersey

TRENTON, N.J. – A Hicksville, New York, man was sentenced today to 63 months in prison for his role in one of the largest credit card fraud schemes ever charged by the Justice Department, U.S. Attorney Paul J. Fishman announced.

Ijaz Butt, 57, previously pleaded guilty before U.S. District Judge Anne E. Thompson to Count One of an indictment charging him with 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:

Butt was originally charged in February 2013 as part of a conspiracy to fabricate more than 7,000 false identities to obtain tens of thousands of credit cards. Since then, 19 people, including Butt, 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.

The scope of the criminal fraud enterprise required Butt and other 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 of the false identities.

Butt admitted that he helped obtain credit cards in the name of third parties – many of which were fictional – then directed the credit cards to be mailed to addresses controlled by members of the conspiracy. He also admitted they knew the cards would be used fraudulently at businesses.

In addition to the prison term, Judge Thompson sentenced Butt to three years of supervised release and fined him $3,000.

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; postal inspectors with the U.S. Postal Inspection Service, under the direction of Inspector in Charge Maria L. Kelokates, Newark Division; and special agents of the U.S. Secret Service, under the direction of Special Agent in Charge Mark McKevitt, with the investigation leading to today’s sentencing. He also thanked the U.S. Social Security Administration for its assistance.

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

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:  Kenneth W. Kayser Esq., East Hanover, New Jersey                                                                                                                                                                

CAMDEN, N.J. – An Atlantic City couple yesterday admitted their respective roles in drug trafficking and money laundering in the Atlantic County area, U.S. Attorney Paul J. Fishman announced.

Toye Tutis, 44, pleaded guilty before U.S. District Judge Jerome B. Simandle in Camden federal court to Count One of a second superseding indictment, charging him with conspiracy to distribute and possess with intent to distribute cocaine, crack cocaine and heroin, and Count 13 charging him with conspiring with his long-time paramour, Jazmin Vega, 42, to launder his drug trafficking proceeds.  Vega also pleaded guilty to the Count 13 conspiracy to launder Tutis’s drug proceeds.

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

From 2010 through December 2014, Tutis operated a large-scale drug trafficking ring out of the Ta’Ja Laundromat in Atlantic City, purchasing and distributing between 150 to 450 kilograms of cocaine and approximately 26 kilograms of heroin, and laundering between $1.5 and $3 million in drug proceeds. Tutis was aided by Vega, who admitted to laundering his drug trafficking proceeds in several ways, including through the couple’s various businesses – Ta’Ja Construction I LLC; Ta’Ja Real Estate Investors LLC; and Integrity Heating and Cooling LLC; and by purchasing more than 30 properties with tainted funds. As part of their plea agreements, Vega and Tutis have to forfeit 20 properties, cash and other assets.

The drug trafficking conspiracy count to which Tutis pleaded guilty carries a maximum potential penalty of life in prison and a fine of $10 million. The money laundering count to which Tutis and Vega both pleaded guilty carries a maximum potential penalty of 20 years in prison and a $500,000. Sentencing is scheduled for Feb. 17, 2017.  

Nine other people have pleaded guilty to participating in the drug trafficking conspiracy or other related drug trafficking in the Atlantic County area, including:

• Kabaka Atiba, 46, of Atlantic City, sentencing scheduled for Jan. 20, 2017;
• Tozine Tiller, 42, of Absecon, sentencing scheduled for Jan. 20, 2017;
• TeJohn Cooper, 43, of Galloway Township, sentencing scheduled for Dec. 16, 2016;
• Ronald Douglas Byrd, 51, of Pleasantville, sentencing scheduled for Dec. 2, 2016;
• Kareem Taylor, 41, of Atlantic City; sentencing scheduled for Dec. 2, 2016;
• Talib Tiller, 43, of Mays Landing, sentencing scheduled for Dec. 1, 2016;
• John Wellman, 41, of Somers Point, sentencing scheduled for Dec. 1, 2016;
• Phillip Horton, 50, of Los Angeles, California, sentencing scheduled for Dec. 1, 2016; and
• Francisco Alberto Rascon-Muracami, 22, of Obregon, Mexico, sentenced on Oct. 30, 2015, to 70 months’ imprisonment and five years of supervised release. 

U.S. Attorney Fishman credited special agents of the FBI’s Newark Division, Atlantic City Resident Agency, under the direction of Special Agent in Charge Timothy Gallagher; the DEA’s New Jersey Division, under the direction of Special Agent in Charge Carl J. Kotowski; the Atlantic County Prosecutor’s Office, under the direction of Acting Prosecutor Diane Ruberton; and the Atlantic City Police Department, under the direction of Police Chief Henry White, with the investigation leading to today’s guilty pleas.

He also thanked the N.J. State Police; the Pennsylvania State Police, the Atlantic County Sheriff’s Office; the Bureau of Alcohol, Tobacco and Firearms; U.S. Immigration and Customs Enforcement (ICE)-Homeland Security Investigation (HSI); U.S. Postal Inspection Service; Cumberland County Sheriff’s Office and the Ventnor, Northfield and Millville police departments for their assistance.

The government is represented by Assistant U.S. Attorneys Diana Carrig and Howard Wiener of the Camden Division and Jonathan M. Peck of the Newark Division.

Defense counsel:

Tutis: J. Michael Farrell Esq., Philadelphia

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

NEWARK, N.J. – Two leaders of the Sex Money Murder set of the Bloods street gang today admitted their respective roles 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.

Narik Wilson, a/k/a “Spaz,” 32, and Emil Rutledge, a/k/a “Diddy,” 27, both 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 them 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.

Wilson and Rutledge, high-ranking members in Sex Money Murder, admitted that from 2007 to 2011 they committed a series of violent crimes to advance the gang’s objectives.  Wilson, the leader, or “O.G.,” of Sex Money Murder, admitted that he directed the murder and attempted murder of eight rival gang members in and around Newark. Rutledge, a “captain,” or “shot-caller,” of Sex Money Murder, admitted that he and others carried out a number of the shootings ordered by Wilson, causing series injuries to others and the death of a victim.

Wilson admitted that he conspired with and directed other members of Sex Money Murder to murder the following individuals described in the indictment:

• Feb. 4, 2007, attempted murder of a rival gang member, (Victim 1);
• Feb. 16, 2007, attempted murder of a rival gang member (Victim 2);
• Oct. 29, 2010, attempted murder of a rival gang member (Victim 3);
• June 16, 2011, attempted murder of rival gang members (Victims 4-7);
• July 14, 2011, murder of a rival gang member (Victim 8);
• Aug. 3, 2011, attempted murder of a rival gang member (Victim 6).
   

Rutledge admitted that, acting at Wilson’s direction, he and others carried out drive-by shootings of Victims 3 through 7 on the above-described dates. Rutledge also admitted that he and others killed Victim 8 in a drive-by shooting. Wilson and Rutledge admitted conspiring to distribute more than one kilogram of heroin in and around Newark.

The plea agreements require both Wilson and Rutledge to be sentenced to 30 years in prison, minus time served in jail on related cases, and five years of supervised release. Sentencing is scheduled for Feb. 15, 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 V. Fontoura; and the Newark Department of Public Safety, under the direction of Anthony F. Ambrose, with the investigation leading to today’s guilty pleas. 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: Michael N. Pedicini Esq., Chatham, New Jersey

Rutledge: Timothy R. Anderson Esq., Red Bank, New Jersey

NEWARK, N.J. – A North Caldwell, New Jersey, man was arrested this morning by FBI agents for fraudulently using funds that he solicited for bulk medical supply and consumer goods transactions, U.S. Attorney Paul Fishman announced.

Michael Esposito, 45, is charged by complaint with one count of wire fraud. He appeared this afternoon before U.S. Magistrate Judge Mark Falk in Newark federal court and was released on bail.

According to the complaint:

Esposito was the president of three companies that purported to be in the business of purchasing consumer products in bulk from manufacturers for resale to wholesalers and retailers. 

In August 2013 Esposito told an individual referred to in the complaint as “Victim 1,” that Esposito had a customer that backed out of the purchase of medical supplies. Victim 1 was able to locate a buyer to whom Victim 1 could sell the goods for profit. However, after Victim 1 wired Esposito funds for the medical supplies, Esposito allegedly used the funds for unrelated expenses, including payments to apparent victim investors from prior transactions, restaurant bills, and salary for himself and others. Esposito also sent Victim 1 numerous fraudulent communications that the delivery of the medical supplies was imminent. Esposito never delivered the medical supplies to Victim 1.

During that time, Esposito also sent Victim 1 numerous emails detailing a series of investment opportunities in which Esposito would purchase consumer goods in bulk at substantial discounts.  Esposito offered to give Victim 1 a significant profit from these deals in return for Victim 1’s investment. Again, Esposito used the funds for his own benefit instead of making the purported investments. He also sent Victim 1 emails and text messages falsely stating that certain deals were in progress or that problems with Esposito’s bank were preventing him from wiring funds to Victim 1.

Altogether, Victim 1 had more than $1 million wired to Esposito for the medical supplies and consumer goods transactions. During this time, Esposito caused approximately $517,000 to be sent by wire transfer to Victim 1, falsely representing that these funds were the return of principal and profits from successful deals. He converted the rest of the funds for his own use. Since January 2014, Esposito has ceased communicating with Victim 1.

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

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

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

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

Defense counsel: Brooke M. Barnett Esq., Newark

NEWARK, N.J. – U.S. Attorney Paul J. Fishman is reminding voters that the U.S. Attorney’s Office will receive and respond to reports of election irregularities, voter intimidation or any other activities that would interfere with a citizen’s right to vote on Nov. 8, 2016. The Election Day Hotline – (888) 636-6596 – will be active Nov. 7, 2016 through Nov. 9, 2016, and will be staffed live on Election day in English and in Spanish.

Each year the U.S. Attorney’s Office and its federal law enforcement partners, led by the FBI, work cooperatively with the New Jersey Attorney General’s Office and county boards of elections to respond to voter complaints and direct them to the appropriate authority.

The Justice Department seeks to ensure that all qualified voters have the opportunity to cast their ballots and have their votes counted, without discrimination, intimidation or fraud. Established in 2010, this yearly initiative is intended to foster public confidence in the integrity of the election process by providing local points of contact within the Justice Department for the public to report possible fraud and voting rights violations while polls are open on Election Day.

Federal law protects against such crimes as intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. 

It also contains special protections for voters so they can vote free from intimidation or harassment. For example, actions designed to interrupt or intimidate voters at polling places by questioning, challenging, photographing or videotaping them, under the pretext that these are actions to uncover illegal voting, may violate federal voting rights law.  Further, federal law protects the right of voters to mark their own ballot or be assisted by a person of their choice.

The Department of Justice Civil Rights Division staff in Washington also will be available by phone to receive complaints related to voting rights (1-800-253-3931 toll free or 202-307-2767) or by TTY (202-514-0716).  In addition, individuals may also report complaints, problems, or concerns related to voting by fax to 202-307-3961, by email to voting.section@usdoj.gov, and via complaint forms that may be submitted through a link on the Justice Department’s website, at http://www.justice.gov/crt/complaint/votintake/index.php.

NEWARK, N.J. – El Fiscal Federal para el distrito de Nueva Jersey, Paul J. Fishman, le está recordando a los votantes de Nueva Jersey que la Oficina de la Fiscalía Federal para el distrito de Nueva Jersey estará dispuesta a recibir y a responder a reportes de irregularidades electorales, intimidación a los votantes y cualquieras otras actividades que puedan interferir con los derechos electorales de los ciudadanos el 8 de noviembre del 2016. La línea telefónica de ayuda electoral – (888) 636-6596 – estará activa desde el 7 de noviembre del 2016 hasta el 9 de noviembre del 2016 y será atendida en vivo el día de las elecciones en inglés y en español.

Cada año, la Oficina de la Fiscalía Federal para el distrito de Nueva Jersey, y otras agencias federales del orden público, encabezadas por el FBI, trabajan conjuntamente con la Oficina del Fiscal General de Nueva Jersey y las juntas electorales de los condados para responder a quejas electorales y dirigir las quejas a las autoridades apropriadas.

El Departamento de Justicia tiene por objeto garantizar que todos los votantes calificados tengan la oportunidad de emitir su voto y que sus votos cuenten, sin discriminación, intimidación o fraude. Fundada en el año 2010, esta iniciativa anual tiene como meta fomentar la confianza pública en la integridad del proceso electoral al proporcionar puntos de contacto locales dentro del Departamento de Justicia para que el público pueda reportar posibles violaciones de los derechos electorales y fraude electoral, mientras que las urnas estén abiertas el día de las elecciones.

La ley federal proteje a los cuidadanos contra crímenes electorales tales como  la intimidación y el soborno de los votantes, la suplantación de votantes, la alteración de los lotes de votos, el relleno de las urnas electorales, y el marcar a las boletas para los votantes en contra de los deseos de los votantes y sin la participación de estos.

La ley también contiene protecciones especiales para los votantes para asegurar que estos  puedan votar libre de intimidación o acoso. Por ejemplo, las acciones destinadas a interrumpir o intimidar a los votantes en los centros electorales, tal como cuestionando, desafiando, fotografiando o grabando los votantes, usando como pretexto que tales acciones son para descubrir actividades ilegales electorales, pueden en sí violar las leyes federales que protegen los derechos electorales. Además, la ley federal protégé el derecho de los votantes a marcar sus propias boletas o a ser asistidos para marcar sus boletas por una persona elegida por el votante.

El personal de la División de Derechos Civiles del Departamento de Justicia en Washington también estará disponible por teléfono para recibir denuncias relacionadas a los derechos electorales (1-800-253-3931 peaje gratis o 202-307-2767) o por TTY (202-514-0716). Además, las personas también pueden reportar quejas, problemas o inquietudes relacionadas con la votación por fax al 202-307-3961 , por correo electrónico a voting.section@usdoj.gov, y usando formularios de reclamaciones que puedan presentarse a través de un enlace en la página web del Departamento http://www.justice.gov/crt/complaint/votintake/index.php.

NEWARK, N.J. – A South Gate, California, man appeared in federal court today to face a drug distribution charge after he was arrested and found with 27 kilograms of methamphetamine hidden in a tractor trailer he was driving, U.S. Attorney Paul J. Fishman announced.

Tomas Lopez Beltran, 45, is charged by complaint with one count of possession with intent to distribute 500 grams or more of methamphetamine. He appeared before U.S. Magistrate Judge Joseph A. Dickson in Newark federal court and was detained. He was arrested Oct. 28, 2016 by agents of the Drug Enforcement Administration (DEA).

According to the complaint:

On Oct. 28, 2016, law enforcement performed a traffic stop of a tractor trailer in Woodbridge, New Jersey. The tractor trailer was driven by Beltran. During a lawful search, law enforcement recovered approximately 27 kilograms of methamphetamine from a concealed compartment inside the cab of the trailer. 

The possession with intent to distribute charge carries a minimum penalty of 10 years in prison, a maximum potential penalty of life in prison and a $10 million fine.

U.S. Attorney Fishman credited special agents of the DEA, under the direction of Special Agent in Charge Carl J. Kotowski in Newark, with the investigation leading to the charges.

The government is represented by Assistant U.S. Attorney Karen D. Stringer and Mary Toscano, Chief of the General Crimes Unit of the U.S. Attorney’s Office in Newark.

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

NEWARK, N.J. – A Newark man was charged today with possession with intent to distribute illegal narcotics, U.S. Attorney Paul J. Fishman announced.

Wilfredo Rodriguez Escobar, 52, is charged by complaint with one count of possession with intent to distribute approximately 25 kilograms of heroin and approximately eight kilograms of cocaine, and one count of being a felon in possession of a firearm. He appeared today before U.S. Magistrate Judge Steven C. Mannion in Newark federal court and was detained without bail.

According to the complaint:

On Oct. 26, 2016, law enforcement arrested Rodriguez Escobar at his apartment after finding, pursuant to a search, a hidden compartment that contained heroin, cocaine, more than $300,000 in cash and a firearm.    

The drug charge carries a mandatory minimum penalty of 10 years in prison, a maximum potential penalty of life, and a $10 million fine.

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

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

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

NEWARK, N.J. – A Boca Raton, Florida, man today admitted his role in a computer hacking and identity theft scheme that generated $1.3 million in illegal profits by hijacking customer email accounts to send unsolicited “spam” emails, U.S. Attorney Paul J. Fishman and Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division announced.

Timothy Livingston, 31, pleaded guilty to Count One, Count Two, and Count Six of a superseding indictment charging him with conspiracy to commit fraud and related activity in connection with computers and access devices, conspiracy to commit fraud and related activity in connection with electronic mail, and aggravated identity theft.  Livingston pleaded guilty today before U.S. District Judge William J. Martini in Newark federal court.

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

Beginning as early as 2011, Livingston operated A Whole Lot of Nothing LLC – a business that specialized in sending spam emails on behalf of its clients. Livingston’s clients included legitimate businesses, such as insurance companies that wished to send bulk emails to advertise their businesses, as well as illegal entities, such as online pharmacies that sold narcotics without prescriptions.

Livingston admitted that beginning in January 2012, he solicited Tomasz Chmielarz, 33, of Rutherford, New Jersey, to write computer programs that would send spam in a manner that concealed the true origin of the email and bypassed spam filters.

Livingston admitted that he then used these programs to transmit spam. In addition, Livingston used proxy servers and botnets to remain anonymous, hide the true origin of the spam, and evade anti-spam filters and other spam blocking techniques.

Livingston admitted that he hacked into individual email accounts and utilized corporate mail servers to further his spam campaigns. For instance, Livingston and Chmielarz created custom software designed to hack into the customer email accounts of a company identified in the indictment as “Corporate Victim 1” so that those accounts could then be used to send out spam. By using proxy servers and Corporate Victim 1’s customer accounts, Livingston was able to send out massive amounts of spam without identifying himself as the sender.

Livingston also admitted that he and Chmielarz created custom software that appropriated a corporate website, identified in the indictment as “Corporate Victim 2,” which allowed Livingston to use Corporate Victim 2’s servers to send spam that appeared to be from Corporate Victim 2, but in reality was transmitted by Livingston.

Livingston also admitted that he used, without lawful authority, the username and password for an email account belonging to an actual customer of Corporate Victim 1 during the above-mentioned felony violations.

The charge of conspiracy to commit fraud and related activity in connection with computers and access devices carries a maximum potential penalty of five years in prison. The charge of conspiracy to commit fraud and related activity in connection with electronic mail carries a maximum potential penalty of three years in prison. The charge of aggravated identity theft carries a mandatory consecutive term of two years in prison. All three charges are punishable by a fine of $250,000, or twice the gross gain or loss from the offense.

Livingston also consented to the entry of a forfeiture money judgment in the amount of $1,346,442, as well as the forfeiture of property obtained using illegal proceeds from the scheme, including a 2009 Cadillac Escalade and a 2006 Ferrari F430 Spider.

Sentencing for Livingston is scheduled for Jan. 27, 2017. Chmielarz pleaded guilty for his role in the conspiracy on June 2, 2016 and awaits sentencing.

U.S. Attorney Fishman and Assistant Attorney General Caldwell credited special agents of the FBI’s Cyber Division, under the direction of Special Agent in Charge Timothy Gallagher in Newark, with the investigation.

The government is represented by Assistant U.S. Attorney Daniel Shapiro of the Computer Hacking and Intellectual Property Section of the Economic Crimes Unit in Newark, Senior Trial Attorney William A. Hall, Jr., of the Criminal Division’s Computer Crime

Defense counsel: Lorraine Gauli-Rufo Esq., Verona, New Jersey

NEWARK, N.J. – An inspector at the Union City Community Development Agency (UCCDA) was sentenced today to 20 months in prison for conspiring with contractors to rig the selection process for home improvement, sidewalk replacement and other projects, causing losses of at least $307,000, U.S. Attorney Paul J. Fishman announced. 

Johnny Garces, 53, of Union City, New Jersey, previously pleaded guilty before U.S. District Judge William H. Walls to an information charging him with one count of conspiring with others to obtain by fraud funds provided by Union City. Judge Walls imposed the sentence today in Newark federal court.

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

Between April 2007 and July 2011, Garces was an inspector at the UCCDA, a government agency that receives funding from the U.S. Department of Housing and Urban Development (HUD) under a federal block grant that provides money for home improvement projects, sidewalk replacement and other projects. 

From 2007 through 2011, Garces conspired with contractors Joseph Lado, 68, of Fort Lee, New Jersey, Leovaldo Fundora, 55, of Guttenberg, New Jersey, and others to rig the selection process for HUD-funded projects through false and misleading bids. In addition to instructing Lado and Fundora to submit phony, higher bids from competitors, Garces also fabricated higher bids from numerous fictitious companies so that Lado, Fundora and others would secure the projects. 

In addition to the prison term, Judge Walls sentenced Garces to three years of supervised release and ordered him to pay restitution of $307,497.

Lado was sentenced Aug. 10, 2016, to three years of probation and ordered to pay $82,886 in restitution. Fundora was sentenced Aug. 17, 2016, to three years of probation and ordered to pay $73,754 in restitution.

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

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

CAMDEN, N.J. - A Rock Hall, Maryland, man today admitted stealing at least 40 pieces of art and bringing them to New Jersey to sell them, U.S. Attorney Paul J. Fishman announced.

William C. Reed III, 42, pleaded guilty before U.S. District Judge Robert B. Kugler in Camden 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:

Starting in June 2013, Reed was employed as a caretaker for an individual in Rock Hall. Reed’s client was an art collector and dealer, who collected and maintained an eclectic collection of fine art by American and European artists. The collection included paintings, sculptures and etchings.

Between June 2014 and November 2014, Reed took various works of art from his client’s Rock Hall property without his permission and sold the art at various locations, including a pawn shop in Salem, New Jersey, and to an individual in Chestertown, Maryland.

The interstate transportation of stolen property charge to which Reed pleaded guilty carries a maximum potential penalty of 10 years in prison and $250,000 fine. Reed's sentencing is scheduled for Feb. 3, 2017.

U.S. Attorney Fishman credited special agents of the FBI’s Art Crime Team, under the direction of Special Agent in Charge Michael Harpster in Philadelphia, with the investigation leading to today’s plea.  Fishman also thanked the Rock Hall Police Department, under the direction of Chief Steven W. Moore, for its assistance in this case.

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

Defense counsel:  Lisa Lewis Esq., Camden

NEWARK, N.J. – A Middlesex County, New Jersey, man today admitted his role in a conspiracy to traffic approximately four kilograms of ethylone from China to New Jersey, U.S. Attorney Paul J. Fishman announced.

Thomas Seymore, 38, of Carteret, New Jersey, pleaded guilty before U.S. District Court Judge Katharine S. Hayden in Newark federal court to an indictment charging him with one count of conspiring to distribute ethylone, a Schedule I controlled substance. 

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

On June 10, 2014, Seymore conspired with others to possess with the intent to distribute approximately four kilograms of ethylone, which had been ordered from China and shipped to a location in Teaneck, New Jersey.  Ethylone is an illegal synthetic drug that stimulates the nervous system and can cause hallucinogenic effects. Seymore was indicted by a federal grand jury on April 18, 2016, for his role in the drug trafficking conspiracy. 

The conspiracy charge to which Seymore pleaded guilty carries a maximum potential penalty of 20 years in prison and a fine of up to $1 million.  Sentencing is scheduled for Feb. 1, 2017. 

U.S. Attorney Fishman credited special agents and task force officers of the Drug Enforcement Administration (DEA), under the direction of Special Agent in Charge Carl J. Kotowski; the U.S. Department of Homeland Security-Homeland Security Investigations under the direction of Special Agent in Charge Terence S. Opiola, and the U.S. Postal Inspection Service under the direction of Inspector in Charge Maria L. Kelokates.   

The government is represented by Assistant U.S. Attorneys Jonathan M. Peck and Tazneen Shahabuddin of the U.S. Attorney’s Office Criminal Division in Newark.

NEWARK, N.J. - A Bergen County, New Jersey, woman was sentenced today to 81 months in prison for embezzling more than $1 million while she worked at a bank in Fort Lee, New Jersey, U.S. Attorney Paul J. Fishman announced.

Miye Chon, a/k/a/ “Karen Chon,” 36, of Englewood Cliffs, New Jersey, previously pleaded guilty before U.S. District Judge William H. Walls to Counts One, Two, and 29 of a superseding indictment charging her with bank fraud, embezzlement or misapplication of funds by a bank officer or employee, and aggravated identity theft. Judge Walls imposed the sentence today in Newark federal court.

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

Chon was employed by BankAsiana, a federally insured financial institution, as an operations officer and later as an assistant vice president and operations officer at the Fort Lee branch until the bank was acquired by Wilshire Bank in October 2013. Chon had access to customer accounts and the bank’s internal account records, computer system and vault. Over several years, Chon stole more than $1 million from BankAsiana’s customer accounts by regularly making unauthorized transfers from customer certificate of deposit (CD) accounts into BankAsiana’s vault cash account and then physically removing cash from the bank’s vault.

Chon accomplished this scheme on dozens of occasions, typically taking tens of thousands of dollars at a time. One time, she converted $100,000 from a customer’s CD account. As part of the scheme, Chon also opened up a bank account in an individual’s name and forged checks using that individual’s name without permission.

In addition to the prison term, Judge Walls sentenced Chon to two years of supervised release and ordered her to pay restitution of $1,350,081.

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 Daniel Shapiro and Lakshmi Srinivasan Herman of the U.S. Attorney’s Office’s Economic Crimes Unit.

Today’s sentencing is part of efforts underway by President 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.  Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants.  For more information on the task force, please visit www.StopFraud.gov

Defense counsel: Matthew Jeon Esq., Fort Lee, New Jersey                                                                                                                                                                  

CAMDEN, N.J. – A Burlington County, New Jersey, man was sentenced today to 70 months in prison for selling to a Camden drug dealer and other criminals in the Camden area at least 200 firearms that he purchased with cash from other illicit firearms dealers, U.S. Attorney Paul J. Fishman announced.

Joshua Jackson, 36, a/k/a “Trent,” of Willingboro, New Jersey, previously pleaded guilty before U.S. District Judge Robert B. Kugler to an information charging him with one count each of dealing firearms without a license, conspiracy to deal in firearms without a federal firearms license, and possession of firearms by a convicted felon. Judge Kugler imposed the sentence today in Camden federal court.

According to documents filed in this and related cases and statements made in court:

Jackson admitted that between December 2009 and September 2010, he sold or brokered the sale of at least 200 handguns that he purchased with cash from illegal gun distributors in Ohio and from straw purchases made by his associates from gun stores in Columbus, Ohio.

Jackson sold many of the weapons to Terrance Laboo, 43, of Oaklyn, New Jersey. Laboo, who previously pleaded guilty in this matter, admitted that at the time he purchased these firearms, he was distributing PCP and cocaine from the corner of 4th and Chestnut Streets in Camden. Laboo also admitted that he sold, directed or brokered the sale of many of the firearms he purchased to other drug dealers in southern New Jersey.

Jackson obtained most of the firearms through purchases at gun shows from unlicensed gun sellers who were not subject to background checks. Some of the firearms also were purchased at Ohio gun stores by straw purchasers working for Jackson, who then transported the handguns to New Jersey from Ohio and resold them to Laboo and others in the Camden area.

Jackson transported the illegal firearms into the Camden area using a rental car or by having an associate transport them in duffel bags on Greyhound buses running between Columbus and bus terminals in Philadelphia and Mount Laurel, New Jersey.

In addition to the prison term, Judge Kugler sentenced Jackson to three years of supervised release.

U.S. Attorney Fishman credited special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), under the direction of Special Agent in Charge George P. Belsky, with the investigation leading to today’s sentence. He also thanked the U.S. Attorney’s Office in the Southern District of Ohio, directed by U.S. Attorney Benjamin C. Glassman, and agents of the ATF Field Division in Columbus, under the direction of Acting Special Agent in Charge Bradley Earman for their assistance.

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

Defense counsel: Justin Loughry Esq., Philadelphia

CAMDEN, N.J. – Two individuals from Cumberland County, New Jersey, were each sentenced today for planning to destroy a historic diner that they owned in Bridgeton, New Jersey, U.S. Attorney Paul J. Fishman announced.

Andrew Webster, 50, of Cedarville, New Jersey, was sentenced to 20 months in prison. His wife, Brenda Webster, 46, also of Cedarville, was sentenced to three years of probation, including six months of home confinement with electronic monitoring. Both defendants previously pleaded guilty before U.S. District Judge Robert B. Kugler to separate informations charging them each with one count of conspiracy to commit arson. Judge Kugler imposed both sentences today in Camden federal court.

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

In March 2012, Andrew and Brenda Webster purchased and operated Angie’s Bridgeton Grill, a nearly 75-year old diner that was listed on the New Jersey and National Register of Historic Places in 2012. 

Soon after they began to operate the diner, the Websters experienced several months of poor financial performance. During their plea hearings, Andrew and Brenda Webster admitted that they agreed to destroy the diner by fire. They also admitted that on Oct. 23, 2012, they traveled to the diner in Andrew’s truck.

According to the charges, in the early morning hours of Oct. 24, 2012, the Websters entered the diner, collected combustible materials (including newspapers, paper menus, and other light-weight combustible materials), doused them with gasoline, and ignited them with an open flame. Brenda Webster suffered burns to her body when gasoline vapors inside the diner ignited. The two quickly exited and within a short period of time, the fire destroyed the diner.

In addition to the prison term, Judge Kugler sentenced Andrew Webster to serve three years of supervised release. Both defendants are also responsible for restitution of $36,704.49.

U.S. Attorney Fishman credited the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), under the direction of Special Agent in Charge George P. Belsky; the Cumberland County Prosecutors Office, under the direction of Prosecutor Jennifer Webb-McRae; and the Bridgeton Police Department, under the direction of Chief Michael Gaimari, with the investigation.

The government is represented by Assistant U.S. Attorney Matthew T. Smith of the U.S. Attorney’s Office Criminal Division in Camden.

Defense counsel:

Andrew Webster: Richard Coughlin Esq., Assistant Federal Public Defender, Camden

Brenda Webster: Joseph Hoffman III Esq., Turnersville, New Jersey.

TRENTON, N.J. –A former employee of a Bergen County, New Jersey, watch manufacturer was sentenced today to 12 months in prison for using phony documents and corporate records to defraud her employer out of hundreds of thousands of dollars of watches and watch parts, U.S. Attorney Paul J. Fishman announced.

Lissette Delarosa, 37, of Woodland Park, New Jersey, previously pleaded guilty before U.S. District Judge Michael A. Shipp to an information charging her with one count of mail fraud conspiracy. Judge Shipp imposed the sentence today in Trenton federal court.

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

Delarosa admitted that from May 2003 through July 2010, she and Cynthia Alvarez, a/k/a “Cynthia Espejo,” 51, of Kissimmee, Florida, abused their positions in the watch manufacturer’s Bergen County customer service department to fraudulently obtain merchandise. Alvarez and Delarosa created hundreds of fictitious invoices, records, and customer complaints for watches and watch parts in their employer’s invoicing system and directed the merchandise to be sent to addresses they controlled. The watch manufacturer received no payment related to these invoices and no legitimate basis existed for providing the parts free of charge.

In addition to the prison term, Judge Shipp sentenced Delarosa to three years of supervised release and ordered her to forfeit $126,460.81.

Alvarez pleaded guilty to the same offense and was sentenced on July 8, 2016 to two years of probation.

U.S. Attorney Fishman credited postal inspectors with the U.S. Postal Inspection Service, under the direction of Inspector in Charge Maria L. Kelokates, Newark Division, with the investigation.

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

Defense counsel: Alan D. Bowman, Esq., Newark, New Jersey

NEWARK, N.J. – A Belleville, New Jersey, woman was sentenced today to 92 months in prison for her role in leading a conspiracy to illegally obtain and distribute oxycodone in New Jersey, U.S. Attorney Paul J. Fishman announced.

Victoria Horvath, 44, previously pleaded guilty before U.S. District Judge Esther Salas to an indictment charging her with conspiracy to distribute oxycodone. Judge Salas imposed the sentence today in Newark federal court.

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 Victoria Horvath as a senior member of the drug trafficking organization.

Horvath admitted that, between Feb. 5, 2014 and Aug. 13, 2014, she personally went to various doctors’ offices and obtained prescriptions for pills containing oxycodone, had the prescriptions filled by various pharmacies, and sold the pills to members of the conspiracy and others. Horvath also drove other conspirators to specific doctors to obtain oxycodone prescriptions, assisted them in getting the prescriptions filled, and helped them sell the pills. 

For example, Horvath admitted that she, while working with multiple conspirators, sold 119 oxycodone pills to an undercover law enforcement officer in February 2014 in exchange for $2,020. Horvath also admitted to being an organizer and manager of the conspiracy.

Oxycodone is a Schedule II controlled substance – meaning that it has a high potential for abuse, a currently accepted medical use with severe restrictions, and abuse of the drug may lead to severe psychological or physical dependence.

In addition to the prison term, Judge Salas sentenced Horvath to three years of supervised release.

Of the individuals originally charged with Horvath, Alexis Horvath, 27, of Belleville, New Jersey, Rickie Horvath, 54, Tony Marco, 47, and Steven Horvath, 45, all of Rutherford, New Jersey, and Justin Farraj, 24, and Matthew Policarpio, 28, of Newark, and Sabrina Vajda, 32, of Brooklyn, New York, have pleaded guilty and await sentencing. Brian Perez, 23, was sentenced to a term of 40 months in prison in September 2014. Luis Rivera, 25, was sentenced to 54 months in prison in August 2015.  Daniel Horvath, 27, was sentenced to 27 months in prison in and Johnny Horvath, 46, was sentenced to 30 months in prison in April 2016. Monica Horvath, 22, was sentenced to 24 months in prison in August 2016. Charges were dismissed against Belleville pharmacist Vincent Cozzarelli after his death in April 2014. The indictment remains pending against two other conspirators.

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 U.S. Attorney’s Office in Newark.

Defense counsel: Frank P. Arleo Esq., West Orange, New Jersey

TRENTON, N.J. – A Bronx, New York, man today admitted to his role in a conspiracy to possess with intent to distribute 22 kilograms of heroin in New Jersey, U.S. Attorney Paul J. Fishman announced.

Edwin Alamo Jr., 21, pleaded guilty before U.S. District Judge Peter G. Sheridan in Trenton federal court to information charging him with one count of conspiracy to possess with intent to distribute more than one kilogram of heroin.

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 and Alberto Mora, parked at an intersection near a store in Clifton, New Jersey. That afternoon, Emmanuel Gonzalez and Alamo drove to the tractor-trailer and left with a suitcase given to them by Mora. Later, Porfirio Peralta-Nunez arrived at the tractor-trailer with two empty bags and left shortly afterwards with the bags filled.

Subsequent traffic stops allegedly revealed 22 kilograms of heroin in Gonzalez and Alamo’s possession. Additional quantities of narcotics were allegedly found in Peralta-Nunez’s possession. Law enforcement also found 10 kilograms of cocaine and 10 kilograms of fentanyl remaining at the tractor-trailer. 

Alamo admitted that he went to Clifton to pick up narcotics from a tractor-trailer and that he obtained a suitcase containing approximately 22 kilograms of heroin.

The count of conspiracy to possess with intent to distribute more than one kilogram of heroin carries a maximum potential penalty of 20 years in prison. Sentencing is scheduled for Jan. 30, 2017.

Co-defendants Mora and Gonzalez have pleaded guilty. Charges and allegations pending against the remaining defendants are merely accusations, and they are considered innocent unless and until proven guilty.

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 guilty plea.

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

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

NEWARK, N.J. – Six members of the international street gang “Mara Salvatrucha” (also known as MS-13) were each sentenced to over five years in prison for various racketeering crimes including extortion, drug distribution, and conspiracy to commit murder, U.S. Attorney Paul J. Fishman announced today.

Amilcar Romero, a/k/a “Chichi,” 47, of Los Angeles, and German Lisandro Benites-Moreno, “Raro,” 23, of Houston, were each sentenced today by U.S. District Court Judge Stanley R. Chesler to 60 months in prison. Marvin Garcia-Cruz, a/k/a “Buffalo,” 33, of West New York, New Jersey, was sentenced today by Judge Chesler to 108 months in prison. Romero previously pleaded guilty to one count of racketeering conspiracy. Benites-Moreno previously pleaded guilty to one count of racketeering conspiracy and one count of conspiracy to ship firearms while being an illegal alien. Garcia-Cruz previously pleaded guilty to one count of conspiracy to commit murder in aid of racketeering and one count of conspiring to possess firearms in furtherance of a crime of violence.

On Oct. 17, 2016, Hector Carranza-Solis, a/k/a “Blackie,” 32, of West New York, Luis Lopez-Guzman, a/k/a “Nino,” 26, of Union City, New Jersey, and Rudy Gutierrez, a/k/a “Chiqui,” 24, of Union City, were each sentenced by Judge Chesler to 60 months in prison. Carranza-Solis and Lopez-Guzman each pleaded guilty to one count of conspiracy to commit murder in aid of racketeering. Gutierrez pleaded guilty to one count of racketeering conspiracy.

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

Romero and Joel Antonio Cortez, 42, a/k/a “Pee Wee,” of Los Angeles, served as the top deputies to Jose Juan Rodriguez-Juarez, 34, the alleged leader of MS-13’s “national program” which was an effort to bring all of local sets operating in the United States under a single, cohesive leadership structure.

By autumn 2013, Rodriguez-Juarez had assigned Romero to serve as the primary point-of-contact between the leadership of Mara Salvatrucha in the United States and El Salvador, while Cortez assumed responsibility for recruiting Mara Salvatrucha cliques on the east coast of the United States to join the national program. Both are also alleged to have ordered acts of violence, including Cortez’s authorization of the November 2013 murder plot in Hudson County and Romero’s order to east coast-based gang members to collect money on behalf of the gang by force and violence.

Romero and Cortez also collaborated with MS-13 gang leaders in New Jersey, Virginia, Maryland, and elsewhere to establish a distribution chain for cheap Mexican cartel drugs, including heroin and crystal methamphetamine. Part of the profit from that drug distribution chain would then be funneled back to the gang’s leadership in California to further promote the gang’s criminal activity.

Benites-Moreno, a Texas-based enforcer, admitted discussing the use of extortion and threats of violence to collect “rent” from other gang members. He also admitted that from Jan. 5, 2014 through July 18, 2014, he conspired with others to ship firearms from Texas to the east coast of the United States, including New Jersey. 

Lopez-Guzman, Carranza-Solis, and Rudy Gutierrez were three members of the “Hudson Locotes Salvatruchas” MS-13 clique based in Hudson County. Garcia-Cruz was the leader of “Pinos Locos Salvatrucha,” another MS-13 clique based in Hudson County. All four admitted to their roles in a conspiracy to murder an MS-13 member who had violated the gang’s rules and the member’s brother, who was alleged to belong to a rival gang. They admitted that they participated in telephone calls and other discussions with the leadership of the gang in the United States and El Salvador – including Cortes – to seek permission to kill the rival gang members. Law enforcement learned of the murder plot during the course of the investigation and arrested the defendants before it could be completed.

Romero’s sentence will be served consecutively to a 44-year prison sentence imposed by California state court in 1997 for attempted murder.

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 investigation also involved substantial assistance from multiple FBI field offices, including the Los Angeles, California, office. U.S. Attorney Fishman also thanked the Hudson County Prosecutor’s Office, under the direction of Prosecutor Esther Suarez, and the Union County Prosecutor’s Office, under the direction of Acting Prosecutor Grace H. Park, for their work on this case. He also acknowledged the U.S. Attorney’s Office for the Central District of California for its assistance.

The government is represented by Assistant U.S. Attorneys James M. Donnelly and J. Jamari Buxton of the U.S Attorney’s Office Organized Crime/Gangs Unit in Newark.

NEWARK, N.J. – An immigration attorney for two information technology companies today admitted that she submitted phony documents and obstructed a federal investigation as part of a scheme that fraudulently obtained foreign worker visas, U.S. Attorney Paul J. Fishman announced.     

Sunila Dutt, 39, of Ashburn, Virginia, pleaded guilty before U.S. District Judge Kevin McNulty in Newark federal court to an information charging her with conspiracy to commit visa fraud and 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 Immigration 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. 

Dutt and other 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 falsely 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.

In some instances, false payroll records were generated to create the appearance that the foreign workers were paid full-time wages. The conspirators required workers to pay SCM Data and MMC Systems their gross wages in cash. In exchange, the companies would issue payroll checks to the foreign workers in a smaller amount. 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 provided fabricated leave or vacation slips to USDOL for the time periods that the foreign workers were not working in order to conceal the fact that they were not paid during those time periods as required by federal law. 

Dutt admitted that she submitted, or caused to be submitted, one or more filings to USCIS falsely representing the companies would employ foreign workers for in-house positions when no such positions existed. Dutt also admitted that on Oct. 16, 2014, MMC Systems, through her, and at the overall direction of the owner of both companies, submitted an I-129 Petition to USCIS to extend the H-1B visa status of a person referred to in the information as “Individual 1.” 

In January 2015, MMC Systems stopped paying Individual 1 on a third-party contract. Dutt admitted that on Jan. 30, 2015, she told Individual 1 to falsely tell a person, whom she believed to be a USCIS employee, that Individual 1 had been living with a friend in Virginia or at a MMC Systems guesthouse. Dutt further admitted that on Feb. 2, 2015, she sent an e-mail to Individual 1 containing false information to be given to the USCIS employee as fictitious proof that Individual 1 resided at a MMC Systems guesthouse in January 2015.

Dutt faces a maximum potential penalty of five years in prison and a $250,000 fine.  Sentencing is scheduled for Feb. 6, 2017.

U.S. Attorney Fishman credited special agents of U.S. Immigration and Customs Enforcement (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:  Mitchell Epner, Esq.

CAMDEN, N.J. - An Egg Harbor Township, New Jersey, man was sentenced today to 33 months in prison for using online messaging applications to solicit nude photos from minors and transmit a lewd photo to a girl, U.S. Attorney Paul J. Fishman announced.

Zackary McFerren, 24, previously pleaded guilty before U.S. District Judge Jerome B. Simandle to an information charging him with one count of possession of child pornography and one count of transferring obscene matter to a minor. Judge Simandle imposed the sentence today in Camden federal court.

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

McFerren admitted that between March 2015 and May 2015, he possessed multiple images of child pornography on his home computer. He also admitted that in April 2015, he used the “Kik” messaging application under the screen name “Emily” to communicate with a minor girl in the Philadelphia area. McFerren admitted that during the conversations, he asked the minor girl and her friend to take nude photographs of themselves and their genitalia. The girl then sent McFerren at least 14 such photographs. 

In addition, McFerren admitted that in September 2015, he used Snapchat to send a picture of his penis to a Florida girl who was under the age of 16.

In addition to the prison term, Judge Simandle sentenced McFerren to five years of supervised release and fined him $2,000.

U.S. Attorney Fishman credited the FBI’s Child Exploitation Task Force, including special agents of the FBI’s Atlantic City Resident Agency, under the direction of Special Agent in Charge Timothy Gallagher in Newark, and detectives of the Atlantic County Prosecutor’s Office, under the direction of Prosecutor James P. McClain, with the investigation leading to today’s sentencing. He also thanked the FBI’s Philadelphia Division, the Egg Harbor Township Police Department and the Bay County, Florida, Sheriff’s Office for their assistance.

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

Defense counsel: Edward Crisonino, Esq., Collingswood, New Jersey

NEWARK, N.J. – A Newark, New Jersey, man was convicted today by a federal jury of possessing a firearm as a previously convicted felon, U.S. Attorney Paul J. Fishman announced.

Lucas Sumler, 42, was convicted of possessing a firearm despite his previous conviction in U.S. District Court in New Jersey. Sumler was convicted today following a two-day trial before U.S. District Judge Esther Salas in Newark federal court.

According to documents filed in this case and the evidence at trial, on March 25, 2016, Sumler, was found in possession of a .357 magnum revolver along with six rounds of ammunition.

The charge of which Sumler was convicted carries a maximum potential penalty of 10 years in prison and a $250,000 fine. Sentencing is scheduled for Feb. 1, 2017.

U.S. Attorney Fishman credited special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), under the direction of Special Agent in Charge George P. Belsky, along with the Newark Police Division, the Essex County Prosecutor’s Office and the Essex County Sheriff's Office, with the investigation leading to today’s guilty verdict.

The government is represented by Assistant U.S. Jonathan W. Romankow and Special Assistant U.S. Attorney Stephanie Raney of the U.S. Attorney’s Office Criminal Division in Newark.

Defense counsel: Michael N. Pedicini Esq., Chatham, New Jersey

NEWARK, N.J. – Two Hudson County, New Jersey, men appeared in federal court today to face charges that they conspired to kill a gang member who was suspected of cooperating with law enforcement, U.S. Attorney Paul J. Fishman announced.

Juan Pablo Escalante-Melgar, a/k/a “Humilde,” 27, and Elmer Cruz-Diaz, a/k/a “Locote,” 28, both of Union City, New Jersey, were previously indicted on one count of conspiring to kill an individual to prevent them from communicating with a law enforcement officer. Escalante-Melgar and Cruz-Diaz were arraigned this afternoon before U.S. District Judge Claire C. Cecchi and were detained without bail. They were originally taken into custody on Sept. 3, 2015, on immigration charges.

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

Escalante-Melgar and Cruz-Diaz are members of the international street gang Mara Salvatrucha, commonly known as “MS-13.” Multiple sub-sets, or “cliques,” of MS-13 operate in Hudson County, including Pinos Locos Salvatrucha (Pinos clique) and Hudson Locotes Salvatrucha (Hudson Locotes clique). Escalante-Melgar was the “First Word,” or leader, of the Pinos clique; Cruz-Diaz was the First Word of the Hudson Locotes clique.

MS-13’s rules strictly prohibit cooperating with law enforcement, and it is well understood within the gang that police informants will be punished by death. The process of obtaining authorization to kill a disobedient gang member is known as “green-lighting.” Obtaining a “green-light” typically requires the authorization of a clique leader and, in some cases, approval from gang leaders in California or El Salvador. When preparing to kill disloyal or disobedient gang members, MS-13 often assigns gang members to follow the targeted individuals to learn their patterns and movements, enabling the gang to carry out the murders at opportune times without alerting law enforcement.

On Aug. 11, 2015, law enforcement intercepted a telephone call between a high-ranking MS-13 member in El Salvador (Gang Leader 1), Escalante-Melgar, and another MS-13 member.  Gang Leader-1 told Escalante-Melgar and the other MS-13 member that they needed to kill three individuals, including Victim 1, a member of the Hudson Locotes clique who was suspected of cooperating with law enforcement.

Four days later, law enforcement intercepted a telephone call between Cruz-Diaz and another MS-13 member in which Cruz-Diaz confirmed that senior MS-13 members in El Salvador had authorized a green-light on Victim 1, and went on to state that the gang would assign members of another MS-13 clique to “watch” Victim 1 in preparation for the killing.  Cruz-Diaz told the other gang member, “the only thing left to do is to just do it.”

On Aug. 16, 2015, Escalante-Melgar spoke by telephone with another MS-13 member and confirmed that four individuals, including Victim 1, had been green-lighted.  Escalante-Melgar explained to the other MS-13 member that the gang would take its time carrying out the murders in order to prevent gang members from being arrested.

On Aug. 31, 2015, Cruz-Diaz and Escalante-Melgar had separate telephone conversations with another member of MS-13, during which the MS-13 member informed Cruz-Diaz and Escalante-Melgar that he had seen Victim 1 on the street in Union City. Cruz-Diaz ordered the MS-13 member to follow Victim 1 to see what time Victim 1 left and returned home. Cruz-Diaz also informed the caller that another MS-13 member had been assigned to follow Victim 1.  Escalante-Melgar acknowledged the information and instructed the caller to contact Escalante-Melgar with developments.

The conspiracy charge carries a maximum potential penalty of life in prison and a $250,000 fine.

The charge and allegations made in court documents are merely accusations, and the defendants are considered 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, Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Newark Division, under the direction of Special Agent in Charge Terence S. Opiola, and ICE’s Enforcement and Removal Operations (ERO), under Newark Field Office Director John Tsoukaris, for the investigation leading to the charges. He also thanked the Hudson County Prosecutor’s Office, under the direction of Prosecutor Esther Suarez, the Union City Police Department, and the West New York Police Department for their work on the case.

The government is represented by Assistant U.S. Attorneys James Donnelly and Jamari Buxton of the U.S. Attorney’s Office Criminal Division in Newark as well as Trial Attorney Matthew Hoff with the Justice Department Criminal Division’s Organized Crime and Gang Section.

Defense counsel:

Escalante-Melgar: Frederick R. Dunne III Esq., Kearny, New Jersey

Cruz-Diaz: Perry Primavera Esq., Hackensack, New Jersey

NEWARK, N.J. – An employee of a privately-held corporation that distributes “As Seen On TV” products was arrested today and charged with theft of trade secrets and wire fraud, U.S. Attorney Paul J. Fishman announced.

Ralph Mandil, 37, of West Long Branch, New Jersey, was arrested by special agents of the FBI following a two-month sting operation in which he offered to sell to undercover agents inside information about his employer’s business. He is charged by complaint with one count of theft of trade secrets and one count of wire fraud. He will appear today before U.S. Magistrate Judge Michael A. Hammer in Newark federal court.

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

The products sold by Mandil’s employer (Victim 1) include electrical and non-electrical appliances, beauty and personal care, pet care, fitness, auto and outdoor products, which are frequently marketed via television ads and are commonly sold at large retailers such as Walmart, generating substantial annual revenues.

Between Aug. 1, 2016, and Oct. 12, 2016, Mandil allegedly exchanged emails, phone calls and held meetings with people he believed were representatives of a New Jersey-based competitor of Victim 1. The individuals he was communicating with were, in fact, government agents outfitted with audio/video recording devices. 

  Throughout those communications, Mandil allegedly offered to provide the agents with proprietary trade secrets belonging to Victim 1, including unreleased product names, specifications, artwork, advertising, market data, manufacturing and other information, in addition to providing them with access to Victim 1’s “drop box,” or cloud storage account, in exchange for $197,500. 

Mandil also allegedly provided the government agents with samples of the merchandise and trade secrets he could steal from Victim 1. During those exchanges Mandil confirmed that the proprietary information he was selling was worth “millions.”  In exchange for these samples, Mandil was paid $10,000.

Law enforcement confirmed that if a competitor was able to preview this information before Victim 1 could release a product to the public, the competitor could use the market data and other proprietary information to obtain a tactical advantage over Victim 1 in the marketplace. A competitor could steal Victim 1’s product designs, undercut its prices and push competing products to retailers before Victim 1.  Victim 1’s representatives estimated that the proprietary information Mandil was offering to sell was worth tens of millions of dollars in revenue to Victim 1 and its competitors.

The theft of trade secrets count with which Mandil is charged carries a maximum potential penalty of 10 years in prison. The wire fraud count with which Mandil is charged carries a maximum potential penalty of 20 years in prison. 

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 the charges.

The government is represented by Assistant U.S. Attorney Adam N. Subervi of the U.S. Attorney’s Office Economic Crimes Unit in Newark.

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

TRENTON, N.J. – A former Monmouth County, New Jersey, resident today admitted collecting Social Security disability checks paid to his wife for more than four years after she died, U.S. Attorney Paul J. Fishman announced.

Brian Unger, 64, formerly of Long Branch, New Jersey, and now a resident of ­Rincon, Puerto Rico, pleaded guilty before U.S. District Judge Freda L. Wolfson in Trenton federal court, to an information charging him with one count of theft of government money.

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

In 2008, Unger’s wife applied to the Social Security Administration (SSA) for Disability Insurance Benefits due to illness which prevented her from working. The SSA maintains the program so eligible individuals who have serious physical or mental impairments are able to replace part of their lost earnings. In March 2008, the SSA determined that Unger’s wife was eligible for the program and began to electronically deposit money her bank account. She died in June 2009, but Unger failed to notify the SSA.

The SSA continued to issue direct deposits of benefit payments into Unger’s wife’s bank account through September 2013. Between June 2009 and October 2013, Unger accessed his deceased wife’s bank account on multiple occasions and used the funds deposited by the SSA on her behalf for his own personal expenses. He admitted that he took $82,854 in SSA benefits that had been improperly distributed to his deceased wife. He also admitted that he did not inform the SSA of his wife’s death because he wanted to continue to collect her disability benefits, which had been converted to Retirement Insurance Benefits in approximately May of 2013, when she would have turned 65, because he knew that informing the SSA of her death would have stopped the flow of those benefits.

The charge to which Unger pleaded guilty carries a maximum potential penalty of 10 years in prison and a fine of $250,000. Sentencing is scheduled for Jan. 18, 2017.

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

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

Defense counsel: Charles J. Uliano Esq., West Long Branch, New Jersey