District of New Jersey

NEWARK, N.J. – A Bergen County, New Jersey, man who was charged in a scheme to defraud two international companies out of $3 million by fraudulently billing them for services that were never completed was indicted today on additional tax charges, U.S. Attorney Paul J. Fishman announced.

Philip Charles de Gruchy, 63, and Barbara Brown, 66, both of Park Ridge, New Jersey, were originally charged in February 2016 in a nine-count indictment with one count of conspiracy to commit mail fraud and eight counts of substantive mail fraud. The indictment handed up today adds six counts against de Gruchy, charging him with subscribing to false individual and corporate tax returns in 2009 and 2010, resulting in more than $800,000 taxes owed to the United States.

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

From August 2007 through April 2, 2010, Brown was employed by “Company A,” a toy and juvenile products retailer headquartered in Wayne, New Jersey, first as director of customer relationship management and then as director of global customer relations management. She had authority to hire and pay contractors. Brown caused Company A to enter into a business relationship with CEM Inc., a company that Brown and de Gruchy secretly controlled. From Nov. 5, 2007, through March 4, 2010, CEM submitted approximately 170 invoices to Company A totalling more than $3 million for alleged marketing consulting work. The purported work was unnecessary, worthless, or never completed.  Brown failed to disclose that she and De Gruchy had a financial interest in those invoice payments.

Although the checks that Company A issued to CEM were mailed to various Canadian addresses, the checks were ultimately deposited at bank branches located in Park Ridge, New Jersey. Checks were written out of the CEM account payable directly to either de Gruchy, Brown or two companies affiliated with de Gruchy: Silk Farm Inc. and Ontario LLC. Money obtained from the scheme was used for personal purposes, including home renovations, mortgage payments on the Park Ridge residence that Brown and de Gruchy shared, and credit card expenses.  

From July 2010 through Nov. 11, 2011, de Gruchy was employed as the director of global relations management by “Company B,” an international manufacturer and retailer of luxury suitcases and accessories, headquartered in South Plainfield, New Jersey. He was responsible for a data migration project designed to assist Company B with identifying customer purchasing patterns. De Gruchy obtained verbal approval from Company B to hire Brown to assist him on the migration project. At no time did de Gruchy reveal his personal and financial relationship with Brown.

From November 2010 until November 2011, Brown submitted invoices in her own name or the name of her company, BI Insights, totaling more than $300,000 for purported work related to the data migration project. De Gruchy approved all of the invoices submitted by Brown and BI Insights. The work was alleged to be unnecessary, worthless, or never completed. Checks from Company B totaling $216,825 were sent to one of the Canadian addresses used to receive checks from Company A and were then deposited into a National Bank of Canada account held by Brown and De Gruchy.  

Counts 10 and 11 of the superseding indictment charge de Gruchy with subscribing to false individual joint income tax returns for tax years 2009 and 2010. He allegedly intentionally overstated expenses and understated gross receipts, including receipts from the fraudulent conduct charged regarding Company A and Company B for those tax years, causing those returns to understate his total income for those years by $1.6 million.  

De Gruchy is charged in Counts 12 and 13 of the superseding indictment with subscribing to false corporation tax returns for CEM for tax years 2009 and 2010.  He allegedly falsely claimed certain business expenses payments, including payments made to “Individual 1,” which were then kicked back to de Gruchy, causing those business returns to understate CEM’s taxable income by $649,465 for those tax years.  

De Gruchy is charged in Counts 14 and 15 of the superseding indictment with subscribing to false corporation tax returns for Silk Farm for tax years 2009 and 2010.  He allegedly falsely claimed certain business expense payments, including payments made to Individual 1, which were then kicked back to de Gruchy, causing those business returns to understate Silk Farm’s taxable income by $377,578 for those tax years. 

The counts of conspiracy to commit mail fraud and substantive mail fraud each carry a maximum potential penalty of 20 years in prison. The charges of subscribing to a false tax return each carry a maximum potential penalty of three years in prison. Each count of the indictment is punishable by a fine of $250,000 or twice the amount of the pecuniary 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 Timothy Gallagher and IRS-Criminal Investigations, Newark Field Office, under the direction of Special Agent Jonathan D. Larsen, with the investigation leading to the charges.        

The government is represented by Senior Litigation Counsel Leslie F. Schwartz of the U.S. Attorney’s Office in Newark.

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

Defense counsel:

De Gruchy: Wanda Akin Esq., Newark

Brown: David B. Glazer Esq., Livingston, New Jersey

NEWARK, N.J. – A Newark man was sentenced today to 65 months in prison for distributing large quantities of heroin and oxycodone in and around downtown Newark, U.S. Attorney Paul J. Fishman announced today.

Lamont Vaughn a/k/a “Mont,” a/k/a “True V,” 33, previously pleaded guilty before U.S. District Judge Jose L. Linares to Count One and Count Fourteen of an indictment charging him with conspiracy to distribute 100 grams or more of heroin and oxycodone and being a felon in possession of a firearm. Judge Linares imposed the sentence today in Newark federal court.

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

Between August 2012 and August 7, 2013, Vaughn conspired with others to distribute large quantities of heroin and oxycodone out of a downtown Newark clothing store called Ballas Boutique. Over the course of the conspiracy, Vaughn and others sold drugs out of Ballas Boutique to a confidential source more than 35 times. The majority of the sales were audio and video recorded.

Additionally, law enforcement intercepted conversations of Vaughn and his conspirators pursuant to court orders. The intercepted conversations revealed that Vaughn had multiple employees who sold drugs for him at Ballas Boutique. The intercepted conversations further revealed that Vaughn had multiple, established sources of supply for heroin and oxycodone.

On August 7, 2013, law enforcement officers executed arrest and search warrants at Ballas Boutique and at Vaughn’s home in Newark. When law enforcement officers announced their presence and entered Vaughn’s home, they found Vaughn attempting to flush drugs down the toilet. Among the items recovered from Vaughn’s bedroom were dozens of oxycodone pills, two firearms, and a large amount of cash.

In addition to the prison term, Judge Linares sentenced Vaughn to five years of supervised release.

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

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

Defense counsel: Lamont Vaughn, Pro Se

NEWARK, N.J. – A lender headquartered in Salt Lake City, Utah, has agreed to pay $4.25 million to resolve allegations that it violated the False Claims Act by originating and underwriting mortgage loans insured by the U.S. Department of Housing and Urban Development’s (HUD) Federal Housing Administration (FHA) that did not meet applicable requirements, U.S. Attorney Paul J. Fishman and the U.S. Department of Justice announced today.

As part of the settlement agreement, SecurityNational Mortgage Co. (SecurityNational) admitted it certified loans for FHA mortgage insurance that did not meet HUD underwriting requirements regarding borrower creditworthiness and eligibility. 

Since at least January 2006, SecurityNational has participated as a Direct Endorsement Lender (DEL) in the FHA insurance program. A DEL has the authority to originate, underwrite, and endorse mortgages for FHA insurance. If a DEL approves a mortgage loan for FHA insurance and the loan later defaults, the holder of the loan may submit an insurance claim to HUD, FHA’s parent agency, for the losses resulting from the defaulted loan. Under the DEL program, the FHA does not review a loan before it is endorsed for FHA insurance for compliance with FHA’s credit and eligibility standards, but instead relies on the efforts of the DEL to verify compliance. DELs are therefore required to follow program rules designed to ensure that they are properly underwriting and certifying mortgages for FHA insurance.

“HUD relies on the Direct Endorsement Lenders like SecurityNational to make sure their loans are made only after a rigorous and thorough review,” U.S. Attorney Fishman said. “In this case, SecurityNational has admitted it approved loans that it had no business endorsing, potentially damaging a vital FHA program and other potential borrowers.”

“The FHA program provides important economic support for homeownership and community development,” Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division, said.  “The Department has and will continue to ensure that program participants adhere to applicable requirements, and will pursue those that knowingly misuse the program for their own gain and to the detriment of homeowners and the public.”

SecurityNational admitted it endorsed loans that were not eligible for FHA mortgage insurance, including loans where:

• the borrower was delinquent on federal debt and had an unpaid court-ordered judgment;
• the borrower was four months delinquent on the underlying mortgage SecurityNational refinanced into an FHA loan;
• the mortgage loan amount exceeded HUD’s loan to value requirements;
• SecurityNational failed to document income used to qualify the borrower for FHA mortgage insurance; and
• SecurityNational failed to analyze the borrower’s delinquent credit history.

   

As a result of SecurityNational’s conduct and omissions, HUD insured loans endorsed by each lender that were not eligible for FHA mortgage insurance under the DEL program, and that HUD would not otherwise have insured.  HUD subsequently incurred substantial losses when it paid insurance claims on those loans.

“Today’s settlements resolve allegations that these lenders, entrusted by American taxpayers to abide by FHA rules, failed to comply with certain FHA origination, underwriting and quality control requirements,” Inspector General David A. Montoya for HUD said.  “The settlements demonstrate a continued commitment to address the failures and halt the business practices that potentially harm the FHA program and its participants.”

The settlement with SecurityNational is the result of a joint investigation conducted by HUD, the HUD Office of Inspector General, the Civil Division, and the U.S. Attorney’s Office for the District of New Jersey.  The government is represented by Senior Litigation Counsel Anthony J. LaBruna and Assistant U.S. Attorney Mark Orlowski of the Civil Division of the U.S. Attorney’s Office for the District of New Jersey. A similar settlement in a case investigated by HUD, the HUD Office of Inspector General, the Civil Division, and the U.S. Attorney’s Office for the District of Colorado, was also announced today.

The claims asserted against SecurityNational are allegations only, and there has been no determination of liability.

NEWARK, N.J. – The U.S. Department of Justice, through its Office of Community Oriented Policing Services (COPS Office) COPS Hiring Program (CHP), awarded a total of $13,702,158 to New Jersey police departments for the purposes of creating, or in some cases protecting, 95 law enforcement positions dedicated to improving community policing efforts in the state, U.S. Attorney Paul J. Fishman announced.

The awards were part of $119 million in grants funds announced today by the U.S. Justice Department that were given to 184 law enforcement agencies across the nation. The New Jersey recipients include:

Agency Name

Award Amount

Officers Awarded

Asbury Park Police Department

$474,055

2

Camden County Police Department

$1,875,000

15

East Orange

$1,375,000

11

Essex County Sheriff's Office

$1,875,000

15

Borough of Fort Lee

$125,000

1

Township of Hamilton

$375,000

3

Hudson County Sheriff's Office

$1,500,000

12

Jersey City

$1,875,000

15

City of Orange Township

$1,408,050

6

City of Paterson

$2,820,053

15

 

CHP provides funding directly to state, local and tribal law enforcement agencies for the hiring and rehiring of entry-level career law enforcement officers in an effort to create and preserve jobs and increase community policing capacity and crime prevention efforts. All CHP applicants were asked to identify a specific crime and disorder problem area and how funding would be used to initiate or enhance their capacity to implement community policing approaches to that problem area.

In 2016, the COPS Office gave additional consideration to applicant agencies selecting the category of “Building Trust,” based on the final report of the President’s Task Force on 21st Century Policing. Additional consideration was also given to agencies that selected the areas of school-based policing, homicide or violent crime, and homeland security. Applicants who committed to hiring or rehiring at least one military veteran under CHP also received additional consideration for funding. The full list of recipients can be found here: http://www.cops.usdoj.gov/default.asp?Item=2888.

The COPS Office is a federal agency responsible for advancing community policing nationwide. Since 1995, COPS has invested over $14 billion to advance community policing, including grants awarded to more than 13,000 state, local, and tribal law enforcement agencies to fund the hiring and redeployment of approximately 129,000 officers and provide a variety of knowledge resource products including publications, training, and technical assistance.

CAMDEN, N.J. – A grocery store owner from Philadelphia was sentenced today to 24 months in prison for stealing more than $1.2 million through a food stamp scheme, U.S. Attorney Paul J. Fishman announced.

Kaher Abdullah, 58, previously pleaded guilty before U.S. District Judge Joseph H. Rodriguez to an information charging him with one count of theft of government funds. Judge Rodriguez imposed the sentence today in Camden federal court.

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

In June 2011, Abdullah opened Express Food Mart on South Broadway in Camden.  Express Food Mart was a small grocery store that was authorized to accept Supplemental Nutrition and Assistance Program (SNAP) benefits (formerly known as food stamps). The program is administered by the U.S. Department of Agriculture.

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

From Nov. 1, 2011 through October 2014, he and others under his supervision illegally permitted recipients of SNAP benefits to redeem those benefits at Express Food Mart for cash rather than food. Abdullah admitted that, in general, he and other employees redeemed SNAP benefits for approximately 50 cents on the dollar. He also admitted that from November 2011 through October 2014, Express Food Mart received through its Citibank business account approximately $1,264,006.47 for illegally redeemed SNAP benefits.

Abdullah admitted that shortly after receiving the money in the Express Food Mart account, he transferred the money to another account which he used to pay personal expenses.

In addition to the prison term, Judge Rodriguez ordered Abdullah to serve three years of supervised released and pay restitution of $1,264,006.

U.S. Attorney Fishman credited special agents of the U.S. Department of Agriculture, Office of Inspector General, under the direction of Special Agent in Charge William G. Squires in New York; and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), under the direction of Special Agent in Charge Terence Opiola.

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

Defense counsel: Justin Loughry Esq., Camden

TRENTON, N.J. – A broker-dealer was sentenced today to 36 months in prison for participating in a five-year insider trading scheme that relied on information stolen from an international law firm and yielded net profits of more than $5.6 million, U.S. Attorney Paul J. Fishman announced.

Vladimir Eydelman, 44, formerly of Colts Neck, New Jersey, previously pleaded guilty before U.S. District Judge Michael A. Shipp to an information charging him with one count of conspiracy to commit securities and tender offer fraud, one count of securities fraud, and one count of tender offer fraud. Judge Shipp imposed the sentence today in Trenton federal court.

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

From 2009 to 2013, Eydelman, a broker-dealer employed first by Oppenheimer & Co. and most recently by Morgan Stanley, repeatedly traded on material nonpublic information provided to him by his brokerage client, Frank Tamayo, 43, of Brooklyn, New York, who, in turn, had obtained the inside information from his friend and former law school classmate, Steven Metro, 42, of Katonah, New York. Metro was the managing clerk of the New York office of Simpson Thacher & Bartlett LLP, one of the nation’s premier mergers and acquisitions firms.

The inside information divulged by Metro to Tamayo and, in turn, by Tamayo to Eydelman, related to corporate transactions, such as mergers and acquisitions or tender offers, in which the law firm represented a party or financial advisor to the transaction. As the law firm’s managing clerk, a litigation-related function, Metro did not personally work on most of the corporate transactions at issue. In most instances, Metro stole the inside information from the firm by scouring its computer system using search terms such as “merger agreement,” “bid letter,” “engagement letter,” “due diligence,” as well as client names and client-matter numbers. 

After obtaining the information, Metro divulged it to Tamayo in person, usually meeting at a bar, coffee shop, or other location near their respective workplaces in midtown Manhattan.  During such meetings, Metro provided Tamayo inside information pertaining to, among other things, the names and/or ticker symbols of the companies whose securities should be purchased, the general timing of the planned deals, and information related to how the deals would affect the issuers’ stock price once announced. Tamayo generally would write the security’s ticker symbol on a small piece of paper or napkin and commit to memory any pricing or timing information provided by Metro.

After Tamayo received the inside information from Metro, Tamayo would meet with Eydelman, usually at a location near Eydelman’s workplace, such as under the large clock in New York City’s Grand Central Terminal, where Tamayo would pass it on to Eydelman. Tamayo would show Eydelman the paper or napkin on which Tamayo had written the ticker symbol of the company whose securities should be purchased. After Eydelman memorized the ticker symbol, Tamayo then would place the paper or napkin into his mouth and chew it until it was destroyed.

After receiving the inside information provided by Metro, whom Eydelman knew as Tamayo’s source at a law firm, Eydelman purchased securities for himself, family members, friends, and clients, including Tamayo. Eydelman quickly sold the shares and covered any positions once the relevant deal was publicly announced and the stock price rose. 

Throughout the course of the five-year scheme, Tamayo reinvested the approximately $7,000 in profits that Metro made on the first deal and updated Metro on the running balance of his profits from the insider trading scheme. As of October 2013, by which time the conspirators had traded ahead of at least 13 planned corporate transactions, Metro’s share of the profits had reached approximately $168,000.  Metro sought to cash out his share of the accrued profits from the insider trading scheme, pressing Tamayo to “liberate some cash” during a meeting in January 2014.  Eydelman paid approximately $7,000 in cash to Tamayo in February 2014, with the expectation that Tamayo would use the cash to compensate Metro for providing them inside information.

By exploiting the information that Metro had stolen from the law firm, Eydelman and conspirators Metro and Tamayo netted more than $5.6 million in illicit profits.

In addition to the prison term, Judge Shipp sentenced Eydelman to three years of supervised release, fined him $15,000, and ordered him to forfeit $1,236,657.13.

Metro and Tamayo have both pleaded guilty to their roles in the scheme. On Sept. 14, 2016 Metro was sentenced to 46 months in prison. On Sept. 21, 2016, Tamayo was sentenced to 12 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, for the investigation leading to today’s sentencing.  He also thanked the U.S. Securities and Exchange Commission’s Market Abuse Unit, under the direction of Robert Cohen and Joseph Sansone.

The government is represented by Assistant U.S. Attorney Shirley U. Emehelu of the Special Prosecutions Division of the U.S. Attorney’s Office in Newark, and R. Joseph Gribko of the U.S. Attorney’s Office in Trenton, as well as Unit Acting Chief Barbara Ward and Assistant U.S. Attorney Jafer Aftab of the Office’s Asset Forfeiture and Money Laundering Unit.

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

Defense counsel:  Walter F. Timpone Esq. and John P. Leonard Esq., Morristown, New Jersey

NEWARK, N.J. – Two Newark men admitted today that they carried out two armed carjackings and one attempted carjacking during a five-day span in September 2013, U.S. Attorney Paul J. Fishman announced.

Dion Hines, 23, pleaded guilty before U.S. District Judge Katharine S. Hayden in Newark federal court to a four-count information charging him with attempted carjacking, carjacking (two counts), and using a firearm during a crime of violence. Roosevelt Robinson, 25, pleaded guilty to a three-count information charging him with attempted carjacking, carjacking, and using a firearm during a crime of violence.

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

At 10:30 p.m. on Sept. 22, 2013, Hines, Robinson, and another male conspirator approached a Mercedes Benz sedan that was parked in a residential driveway in Newark. Hines brandished a silver revolver and ordered the driver to get out of the vehicle. Hines, Robinson, and the other conspirator pulled on the driver’s side door, but the victim resisted. Robinson said: “Shoot that [expletive].” The victim eventually got out of the Mercedes Benz and Robinson sat in the driver’s seat. 

After Hines and the other conspirator fled on foot, the victim pulled Robinson from the Mercedes Benz, got back into the vehicle and reversed the car. Hines returned and fired two shots at the Mercedes Benz, striking the rear driver side door. Hines, Robinson, and the other conspirator then ran down the block and jumped into a car waiting nearby. The victim pursued them in the Mercedes Benz, striking both the getaway car and Robinson before Robinson entered the vehicle.  A car chase ensued, during which Hines fired two additional shots at the Mercedes Benz.

At 9:25 p.m. on Sept. 26, 2013, Hines approached a vehicle parked in a lot near a Newark residence. After the driver exited the vehicle, Hines pointed a black revolver and stated: “Give me your car keys or I’ll shoot.” Around this time, another victim, who had just parked a late-model Acura sedan in the parking lot, walked over to where Hines and the other victim were standing. Hines then pointed the revolver at owner of the Acura and demanded the car keys. The owner of the Acura complied and Hines got into the car and fled.

At 4:45 a.m. on Sept. 27, 2013, a dark-colored SUV driven by an unknown person pulled in front of a Range Rover stopped at an intersection in Belleville, New Jersey, blocking the Range Rover’s path. Hines jumped out of the passenger side of the dark-colored SUV and pointed a black handgun at the victim. Robinson, who followed the dark-colored SUV in a separate vehicle, pulled over and stood watch. Hines approached the driver’s door, pulled the victim out of the vehicle, and demanded the car keys. The victim complied, and Hines then got into the Range Rover and fled, followed by the dark-colored SUV and Robinson’s vehicle. 

At 2:20 p.m. that day, law enforcement located the Range Rover in Newark. A brief car chase ensued, during which the Range Rover rammed multiple police vehicles before getting trapped and stopping. Law enforcement officers surrounded the Range Rover with their guns drawn. Hines and Robinson both exited the Range Rover and ran. Law enforcement officers arrested them shortly thereafter. The third occupant was taken into custody immediately. After arresting the three men, law enforcement officers searched the Range Rover and discovered a loaded black revolver in the vehicle.

The carjacking and attempted carjacking counts to which Hines and Robinson pleaded guilty each carry a maximum penalty of 15 years’ imprisonment and a fine of $250,000. The count of using a firearm during a crime of violence to which they pleaded guilty carries a mandatory minimum sentence of seven years in prison, a maximum sentence of life imprisonment, and a fine of $250,000. Sentencing for Hines is scheduled for Jan. 11, 2017, and for Robinson, Jan. 12, 2017.

U.S. Attorney Fishman credited special agents of the U.S. Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Terence S. Opiola in Newark; and the Newark, Elizabeth, and Belleville police departments with the investigation leading to today’s guilty pleas.

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

NEWARK, N.J. – A singer, songwriter, and music producer from Fort Lee, New Jersey, today admitted that from 2008 through 2012, he knowingly failed to file tax returns on over $2.8 million in income, U.S. Attorney Paul J. Fishman announced.

Mario Winans, 42, pleaded guilty before U.S. District Judge Esther Salas in Newark federal court to Count One and Count Three of an information charging him with failing to file a tax return for tax years 2008 and 2010. Winans also admitted that he failed to file tax returns for 2009, 2011, and 2012, and this conduct will be taken into account at sentencing.

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

Winans produced songs and albums for various rhythm and blues, hip-hop, and dance music artists, including several artists on the “Bad Boy” record label. Winans acknowledged that he received royalty payments from checks payable to two companies that he controlled, Yellow City LLC and RioWorld LLC. Winans admitted that despite earning more than $2.8 million from 2008 through 2012, he willfully failed to file tax returns for each of those years, resulting in a tax loss of $434,968.

Winans faces a maximum sentence of two years in prison and a $200,000 fine, or twice the gross gain or loss from the offense. Pursuant to the terms of the plea agreement, Winans must also pay restitution of $434,968 to the IRS. Sentencing is scheduled for Jan. 24, 2017.

Judge Salas set bail at $250,000 and permitted Winans’s release pending sentencing.

U.S. Attorney Fishman credited special agents with IRS-Criminal Investigation, Newark Field Office, under the direction of Special Agent in Charge Jonathan D. Larsen, with the investigation leading to today’s plea.

The case is being prosecuted by Assistant U.S. Attorney Joseph Mack, Deputy Chief of the U.S. Attorney’s Healthcare and Government Fraud Unit. 

Defense counsel: Aidan P. O’Connor, Hackensack, New Jersey

CAMDEN, N.J. – A doctor with offices in Toms River, New Jersey, was sentenced today to 12 months and one day in prison for accepting thousands of dollars in exchange for patient referrals to two lab companies that performed blood and DNA testing, U.S. Attorney Paul J. Fishman announced. 

Vincent Destasio, 55, of Toms River, previously pleaded guilty before U.S. District Judge Joseph H. Rodriguez to an indictment charging him with one count of conspiracy to accept cash bribes. Judge Rodriguez imposed the sentence today in Camden federal court.

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

Destasio, a doctor of osteopathic medicine, was paid cash kickbacks by two sales representatives – Daniel Gilman, 63, of Ocean Grove, New Jersey, and Kenneth Robberson, 47, of Wall, New Jersey – who were partners operating PROMED, a marketing and sales company specializing in blood testing laboratories and DNA laboratory testing companies.  

From March 2014 through May 2015, Gilman and Robberson solicited Destasio by paying him cash bribes for referring patient lab work to two separate laboratories for which Gilman and Robberson provided marketing and sales. One company (Company 1) was a blood testing laboratory company and the other was a DNA laboratory testing company (Company 2). Neither Company 1 nor Company 2 had any knowledge of or involvement in the kickback scheme.   

Gilman and Robberson received monthly commission checks from the two companies for referrals. After receiving the commission checks from the two companies, Gilman and Robberson would identify the number of patients Destasio had referred and pay him a cash kickback based on those patients. Destasio was paid thousands of dollars in cash bribes for his referrals. 

In addition to the prison term, Judge Rodriguez sentenced Destasio to two years of supervised release, fined him $1,000 and entered a forfeiture judgment of $25,000.

Gilman and Robberson have both pleaded guilty to an information charging them with conspiracy to bribe a physician. Gilman was sentenced Sept. 28, 2016, to 12 months and one day in prison. Robberson is scheduled to be sentenced Oct. 5, 2016.

U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, and special agents of the U.S. Department of Health and Human Services, Office of Inspector General, under the direction of Special Agent in Charge Scott J. Lampert, with the investigation leading to today’s sentencing.

The government is represented by Assistant U.S. Attorney R. David Walk Jr. of the U.S. Attorney’s Office Health Care and Government Fraud Unit in Camden.

U.S. Attorney Fishman reorganized the health care fraud practice shortly after taking office, 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.

Defense counsel: John J. Bruno Jr. Esq., Rutherford, New Jersey   

TRENTON, N.J. – A Philadelphia man was sentenced today to 96 months in prison for sex trafficking a 15-year-old girl, U.S. Attorney Paul J. Fishman announced.

Samuel Verrier, 38, aka “Dre,” previously pleaded guilty before U.S. District Judge Michael A. Shipp to an information charging him with one count of procuring the interstate travel of a person to engage in illicit sexual conduct for the purpose of financial gain. Judge Shipp imposed the sentence in Trenton federal court.

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

For approximately two weeks in August 2011, Verrier engaged a 15-year-old girl in prostitution, acting as her pimp. He brought her to various bars and strip clubs, supplied her with drugs and alcohol, and instructed her to have sex with club patrons in exchange for money. On Sept. 1, 2011, Verrier and his co-defendant, Karl Venord, drove the girl from Philadelphia to Bordentown, New Jersey, so that they could use her in an extortion scheme. They directed her to approach a man in a parking lot, seduce him, take pictures of the sexual encounter, and provide those pictures to Verrier and Venord, who would use the pictures to blackmail the man. The scheme went awry when the man declined the girl’s advances and a witness called the police.

In addition to the prison sentence, Judge Shipp sentenced Verrier to a lifetime term of supervised release, the provisions of which restrict his contact with minors, and ordered him to pay $60,000 in restitution to the victim, as well as a $5,000 fine.

U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, with the investigation leading to today’s sentencing. The N.J. Division of Criminal Justice also provided assistance.

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

Defense counsel: Paul Casteleiro Esq., West Trenton, New Jersey

CAMDEN, N.J. – The owner of a marketing and sales company who admitted paying thousands of dollars in cash bribes to a New Jersey physician in return for patient referrals to his clients was sentenced today to 12 months and one day in prison, U.S. Attorney Paul J. Fishman announced. 

Daniel Gilman, 63, of Ocean Grove, New Jersey, previously pleaded guilty before U.S. District Judge Joseph H. Rodriguez to an information charging him with one count of conspiracy to pay kickbacks. Judge Rodriguez imposed the sentence today in Camden federal court.

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

Gilman was a principle of Promed Practice Consultants LLC (Promed), a company specializing in marketing and sales services for testing laboratories. As identified in the information, “Company 1,” a blood testing laboratory, and “Company 2,” a DNA testing laboratory, were two of Promed’s clients. Gilman received monthly commission checks from Company 1 and Company 2 for referrals, which were equal to 10 percent of the reimbursements paid to the companies by various payers, including Medicare.

From March 2014 through May 2015, Gilman paid a physician, Vincent Destasio, 54, of Toms River, New Jersey, thousands of dollars in return for patient lab referrals to Company 1 and Company 2. After receiving the commission checks from Company 1 and Company 2, Gilman would identify Destasio’s patient referrals to those companies and pay him corresponding kickbacks in cash.

Neither Company 1 nor Company 2 had any knowledge of or involvement in the kickback scheme.

In addition to the prison term, Judge Rodriguez sentenced Gilman to two years of supervised release, fined him $1,000, and entered a forfeiture judgment of $25,000. Destasio pleaded guilty on June 23, 2016, to an indictment charging him with one count of conspiracy to accept cash bribes and is scheduled to be sentenced Sept. 29, 2016.

U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher, and the U.S. Department of Health and Human Services, Office of Inspector General, under the direction of Special Agent in Charge Scott J. Lampert, with the investigation leading to today’s sentencing.

The government is represented by Assistant U.S. Attorney R. David Walk Jr. of the U.S. Attorney’s Office Health Care and Government Fraud Unit in Camden.

U.S. Attorney Fishman reorganized the health care fraud practice shortly after taking office, 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 $1.3 billion in health care fraud and government fraud settlements, judgments, fines, restitution and forfeiture under the False Claims Act, the Food, Drug and Cosmetic Act and other statutes.

Defense counsel: Vincent C. Scoca Esq., Bloomfield, New Jersey                                                                                                           

NEWARK, N.J. – Two employees from a Somerset County, New Jersey, company today admitted recruiting foreign nationals to enroll at a “pay to stay” New Jersey college where they could fraudulently maintain their clients’ student visa status and get them full-time work authorizations without the clients having to attend classes, U.S. Attorney Paul J. Fishman announced.

Harpreet Sachdeva, 26, of Somerset, New Jersey, and Sanjeev Sukhija, 35, of North Brunswick, New Jersey, pleaded guilty before U.S. District Judge Madeline Cox Arleo in Newark federal court to separate informations charging them each with one count of conspiracy to commit visa fraud.

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

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

Sachdeva and Sukhij – Indian citizens who are present in the United States on foreign worker visas – were each employed at Right OPT, a purported international student recruiting and consulting company located in Somerset, New Jersey. Sachdeva was Right OPT’s business development, marketing, and operations manager. Sukhija was the company’s business development manager.

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

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

Sachdeva and Sukhija also caused the foreign nationals to be reported in government databases as legitimate foreign students. In order to deceive immigration officials, Sachdeva, Right OPT’s foreign clients, and others obtained and created fraudulent student documents, including attendance records and transcripts.

After enabling them to maintain their student visa status, Sachdeva and Sukhija also conspired to secure fraudulent work authorizations for some of their foreign clients. Both defendants admitted that their intention was to profit from the scheme by outsourcing these foreign individuals through Right OPT as information technology consultants with various businesses in the United States for commissions. In total, Sachdeva, Sukhija and others fraudulently maintained and attempted to obtain approximately 45 student visas and/or work authorizations.

The conspiracy to commit visa fraud charge carries a maximum penalty of five years in prison and a $250,000 fine. Sentencing for Sachdeva and Sukhija is scheduled for Jan. 12, 2017 and Jan. 10, 2017, respectively.

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

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

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

Defense Counsel (Sachdeva): Anthony Gualano, Esq., McAfee, New Jersey

Defense Counsel (Sukhija): David Oakley, Esq., Princeton, New Jersey

NEWARK, N.J. – An associate of the DeCavalcante organized crime family of La Cosa Nostra was sentenced today to 30 months in prison for his role in distributing more than 500 grams of cocaine, U.S. Attorney Paul J. Fishman announced.

John Capozzi, 36, of Union, New Jersey, previously pleaded guilty before U.S. District Judge William H. Walls to an information charging him with one count of distribution of more than 500 grams of cocaine. Judge Walls imposed the sentence today in Newark federal court.

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

Capozzi was arrested and charged by complaint in March 2015, along with nine members of the DeCavalcante crime family. He admitted that between Dec. 12, 2014 and March 2015, in conjunction with other family associates, he sold more than one-half a kilo of cocaine to an undercover FBI agent for at least $78,000.  

In addition to the prison term, Judge Walls sentenced Capozzi to two years of supervised release.    

U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark; the N.J. State Commission of Investigation, under the direction of Acting Executive Director Lee C. Seglem; the Waterfront Commission of New York Harbor, under the direction of Executive Director Walter M. Arsenault; and the Union County Prosecutor’s Office, under the direction of Acting Union County Prosecutor Grace H. Park, with the investigation leading to today’s sentencing.

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

Defense counsel: Neil G. Duffy III Esq., Union, New Jersey

Two Companies and an Employee Also Charged in Indictment

NEWARK, N.J. – A New York man was arrested this morning pursuant to an indictment charging him, two information technology companies that he partly owns, and an employee with fraudulently using the H-1B visa program to reduce skilled labor costs, U.S. Attorney Paul J. Fishman announced today.     

Sowrabh Sharma, 31, of New York, is charged – along with SCM Data Inc., a New Jersey corporation, MMC Systems Inc., a Virginia corporation, and Shikha Mohta, 33, of Jersey City, New Jersey, the head of finance for the companies – with one count of conspiracy to commit visa fraud and to obstruct justice and one count of conspiracy to harbor aliens.

Sharma is scheduled to make his initial appearance this afternoon before U.S. Magistrate Judge Cathy L. Waldor in Newark federal court. Mohta was previously arrested in May 2015 on a criminal complaint and was released on a $100,000 bond.  

According to the indictment unsealed today:

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

SCM Data, MMC Systems, Sharma, Mohta 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, SCM Data, MMC Systems, Sharma, Mohta, and others 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, SCM Data, MMC Systems, Sharma, Mohta, and others generated false payroll records to create the appearance that the foreign workers were paid full-time wages. The conspirators required workers to pay SCM Data or MMC Systems their gross wages in cash. In exchange, SCM Data or MMC Systems 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 SCM Data and MMC Systems.

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. 

The visa fraud and obstruction of justice conspiracy charge carries a maximum potential penalty of five years in prison and a $250,000 fine. The alien harboring conspiracy charge carries a maximum penalty of 10 years in prison and a $250,000 fine. 

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

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

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

Defense Counsel (Sharma):  John P. Lacey Esq.

Defense Counsel (Mohta):  Daniel Bibb Esq.

Four Chinese nationals and a trading company based in Dandong, China, were charged by criminal complaint unsealed today with conspiring to evade U.S. economic sanctions and violating the Weapons of Mass Destruction Proliferators Sanctions Regulations (WMDPSR) through front companies by facilitating prohibited U.S. dollar transactions through the United States on behalf of a sanctioned entity in the Democratic People’s Republic of Korea (North Korea) and to launder the proceeds of that criminal conduct through U.S. financial institutions. 

Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Paul J. Fishman of the District of New Jersey and Assistant Director E.W. Priestap of the FBI’s Counterintelligence Division made the announcement.

On Aug. 3, 2016, a U.S. Magistrate Judge Joseph A. Dickson of the District of New Jersey signed a criminal complaint charging Ma Xiaohong (Ma) and her company, Dandong Hongxiang Industrial Development Co. Ltd. (DHID), and three of DHID’s top executives, general manager Zhou Jianshu (Zhou), deputy general manager Hong Jinhua (Hong) and financial manager Luo Chuanxu (Luo), with conspiracy to violate the International Emergency Economic Powers Act (IEEPA) and to defraud the United States; violating IEEPA; and conspiracy to launder monetary instruments. 

Today, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) also imposed sanctions on DHID, Ma, Zhou, Hong and Luo for their ties to the government of North Korea’s weapons of mass destruction proliferation efforts.

In addition, the department filed a civil forfeiture action for all funds contained in 25 Chinese bank accounts that allegedly belong to DHID and its front companies.  The department has also requested tha the federal court in the District of New Jersey issue a restraining order for all of the funds named in the civil forfeiture action, based upon the allegation that the funds represent property involved in money laundering, which makes them forfeitable to the United States.  There are no allegations of wrongdoing by the U.S. correspondent banks or foreign banks that maintain these accounts. 

“The charges and forfeiture action announced today allege that defendants in China established and used shell companies around the world, surreptitiously moved money through the United States and violated the sanctions imposed on North Korea in response to, among other things, its nuclear weapons program,” said Assistant Attorney General Caldwell.  “The actions reflect our efforts to protect the integrity of the U.S. banking system and hold accountable those who seek to evade U.S. sanctions laws.”

“The charges unsealed today reflect our nation’s commitment to using all tools to deter and disrupt weapons of mass destruction proliferators,” said Assistant Attorney General Carlin.  “One of the strengths of our sanctions programs is that they prevent sanctioned wrongdoers from engaging in U.S. dollar transactions.  Denying the use of the U.S. financial system can greatly curtail illegal activities and disrupt efforts to provide weapons of mass destruction to terrorists and rogue nations.  Those who seek to evade our financial sanctions will be fully prosecuted, and we will be unflagging in our efforts to bring them to justice.”

“The FBI takes violations of these laws extremely seriously and will not hesitate to use our full investigative resources to stop this type of illegal activity,” said Assistant Director Priestap.  “In this case agents, analysts and forensic accountants from field offices in Phoenix and Newark, as well as FBI Headquarters, all contributed to a successful investigation.”

According to criminal and civil complaints, DHID is primarily owned by Ma and is located near the North Korean border.  DHID allegedly openly worked with North Korea-based Korea Kwangson Banking Corporation (KKBC) prior to Aug. 11, 2009, when the OFAC designated KKBC as a Specially Designated National (SDN) for providing U.S. dollar financial services for two other North Korean entities, Tanchon Commercial Bank (Tanchon) and Korea Hyoksin Trading Corporation (Hyoksin).  President Bush identified Tanchon as a weapons of mass destruction proliferator in June 2005, and OFAC designated Hyoksin as an SDN under the WMDPSR in July 2009.  Tanchon and Hyoksin were so identified and designated because of their ties to Korea Mining Development Trading Company (KOMID), which OFAC has described as North Korea’s premier arms dealer and main exporter of goods and equipment related to ballistic missiles and conventional weapons.  The United Nations (UN) placed KOMID, Tanchon and Hyoksin on the UN Sanctions List in 2006.  In March 2016, KKBC was added to the UN Sanctions List. 

In August 2009, Ma allegedly conspired with Zhou, Hong and Luo to create or acquire numerous front companies to conduct U.S. dollar transactions designed to evade U.S. sanctions.  The complaints allege that from August 2009 to September 2015, DHID used these front companies, established in offshore jurisdictions such as the British Virgin Islands, the Seychelles and Hong Kong, and opened Chinese bank accounts to conduct U.S. dollar financial transactions through the U.S. banking system when completing sales to North Korea.  These sales transactions were allegedly financed or guaranteed by KKBC.  These front companies facilitated the financial transactions to hide KKBC’s presence from correspondent banks in the United States, according to the allegations in the complaints. 

As a result of the defendants’ alleged scheme, KKBC was able to cause financial transactions in U.S. dollars to transit through the U.S. correspondent banks without being detected by the banks and, thus, were not blocked under the WMDPSR program.

A complaint is merely an allegation and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

The FBI is investigating the case.  Trial Attorneys Jennifer Wallis and Michael Parker of the Criminal Division’s Asset Forfeiture and Money Laundering Section, Trial Attorney Christian Ford of the National Security Division’s Counterintelligence and Export Control Section and Chief Barbara Ward and Assistant U.S. Attorneys Joyce Malliet and Sarah Devlin of the District of New Jersey are prosecuting the case.  The Criminal Division’s Office of International Affairs provided valuable assistance in this matter. 

NEWARK, N.J. – New Jersey U.S. Attorney Paul J. Fishman and Attorney General Loretta E. Lynch today announced awards totaling over $20 million to 106 state, city, tribal and municipal law enforcement agencies to establish and enhance law enforcement body-worn camera programs across the United States. Four New Jersey municipalities – Newark, Camden, Haledon and Evesham – and the N.J. State Police are among the recipients.

The awards, funded under the Office of Justice Programs’ Bureau of Justice Assistance’s (BJA) Fiscal Year 2016 Body-Worn Camera Policy and Implementation Program, will help law enforcement organizations implement body-worn camera policies, practices and evaluation methods to make a positive impact on the quality of policing in individual communities.  Under this grant announcement, BJA awarded more than $16 million to state, local, and tribal law enforcement agencies, as well as a $3 million supplemental award to continue support for body-worn camera training and technical assistance.  An additional $474,000 was awarded earlier this year under the 2016 Small Agency Body-Worn Camera Policy and Implementation Program.

“These federal grants will enable Newark, Camden, Haledon, Evesham and the New Jersey State Police to provide body-worn cameras for their officers and develop comprehensive policies for their use,” U.S Attorney Fishman said. “The information these cameras capture will  be a valuable new resource for more effective policing that also respects the rights of citizens.”

“As we strive to support local leaders and law enforcement officials in their work to protect their communities, we are mindful that effective public safety requires more than arrests and prosecutions,” Attorney General Lynch said.  “It also requires winning – and keeping – the trust and confidence of the citizens we serve.  These grants will help more than 100 law enforcement agencies promote transparency and ensure accountability, clearing the way for the closer cooperation between residents and officers that is so vital to public safety.”

BJA expects award recipients to create programs that will be integrated as part of individual jurisdictions’ holistic problem-solving and community-engagement strategies.

The Body Worn Camera program was launched last year in response to a recommendation by the President’s Task Force on 21st Century Policing that law enforcement agencies use technology to strengthen relations with communities.  BJA convened a Body-Worn Camera Expert Panel that identified issues and considerations confronting communities considering adoption of body camera technology.  Initial research has shown that law enforcement use of body-worn camera programs improve law enforcement’s interaction with the public.

The New Jersey awards are as follows:

• N.J. State Police – $575,361

• Newark Police Department – $372,500

• Camden County Police Department– $118,500

• Evesham Township Police Department – $144,000

• Borough of Haledon Police Department – $17,920

In addition to the New Jersey recipients, today’s awardees include law enforcement agencies located in the following 31 states and Puerto Rico: Alabama, Arkansas, Arizona, Florida, California, Colorado, Delaware, Georgia, Illinois, Indiana, Iowa, Kansas, Kentucky, Maryland, Michigan, Minnesota, Montana, New York, Nevada, North Carolina, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, Tennessee, Texas, Virginia, Wisconsin, and Wyoming.  Tribal awardees include: Pokagon Band of Potawatomi Indians, the Little Traverse Bay Bands of Odawa Indians and the Nottawaseppi Huron Band of the Potawatomi.

For additional information about this grant program, visit: http://go.usa.gov/xKpJH

CAMDEN, N.J. – A Pennsauken, New Jersey, man was sentenced today to 71 months in prison for illegally selling 16 guns, including firearms with high-capacity magazines and obliterated serial numbers, U.S. Attorney Paul J. Fishman announced.

Ammie Steward, a/k/a “Beav,” a/k/a “B,” 41, previously pleaded guilty before U.S. District Judge Renée Marie Bumb to an information charging him with one count of dealing firearms without a license and one count of possession of a firearm by a previously convicted felon. Judge Bumb imposed the sentence today in Camden federal court.

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

Between May 2012 and Aug. 15, 2012, Steward sold 16 firearms on nine separate occasions for profit and without a license. The 16 firearms included 12 pistols and two rifles. Steward also admitted to using a power tool to obliterate the serial numbers on 14 of the 16 guns.

Steward sold them near Canal’s Liquors at 5360 Route 38 in Pennsauken to a witness who was cooperating with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). Seven of the guns were sold along with high-capacity magazines. On at least one occasion, Steward sold a Kel Tec PLR-16 .223 caliber pistol along with a 30-round magazine and a box of ammunition. Steward also sold a Romarm/Cugir, WASR 10/63 .762 caliber rifle with two high-capacity magazines and a bayonet. All 16 weapons are now in the custody of law enforcement.  

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

U.S. Attorney Fishman credited special agents of the ATF, under the direction of Special Agent in Charge George P. Belsky, with the investigation leading to today’s sentencing. He also thanked the Pennsauken Police Department for their important role.

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

NEWARK, N.J. – A Romanian citizen was sentenced today to 36 months in prison for orchestrating an international hacking scheme targeting retailers, security companies, medical offices and individuals in the United States, U.S. Attorney Paul J. Fishman announced.

Mircea-Ilie Ispasoiu, 31, of Drobeta-Turnu Severin, Romania, previously pleaded guilty before U.S. District Judge Kevin McNulty to Count One and Count Seven of an indictment charging him with wire fraud and aggravated identity theft. Judge McNulty imposed the sentence today in Newark federal court.

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

From August 2011 through February 2014, Ispasoiu was employed as computer systems administrator at a large financial institution in Romania. Ispasoiu’s scheme involved hacking networks belonging to retailers, security companies, medical offices and individuals in order to steal user names and passwords, personal identifiers and credit and debit card data. Ispasoiu also gained access to a computer at a large security company that ran background checks on job applicants. Ispasoiu stole the applicants’ personal identifying information, including their fingerprints.

In addition to the prison term, Judge McNulty sentenced Ispasoiu to three years of supervised release and ordered him to pay restitution of $907,204.88.

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, with the investigation leading to today’s sentence. U.S. Attorney Fishman also thanked the Justice Department’s Office of International Affairs in Washington, as well as the Prosecutor’s Office attached to the High Court of Cassation and Justice in Romania and its law enforcement partners, for their support.

The government is represented by Assistant U.S. Attorney Daniel Shapiro of the Computer Hacking and Intellectual Property Section of the Office’s Economic Crimes Unit.

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

TRENTON, N.J. – A Camden man pleaded guilty today to sex trafficking of a minor, U.S. Attorney Paul J. Fishman announced.

Aaron J. Gray, 29, of Camden, pleaded guilty before U.S. District Judge Peter G. Sheridan to an information charging him with one count of sex trafficking of a minor. Gray previously was charged in a criminal complaint with co-defendants Aja M. Easley, 22, of Camden, and Kenneth A. Mertz, 35, of Collingswood, with sex trafficking of a minor and conspiracy to engage in sex trafficking of a minor. Gray also was charged in the complaint with being a felon in possession of a firearm.

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

On March 2, 2015, Aja Easley communicated with the victim, a minor, using a popular social media website. Easley told the victim she was “worried about” the victim because of a previous assault by the victim’s ex-boyfriend. She offered the victim money, food, clothing, and shelter, and met the victim at the Camden Transportation Center. There, Easley told the victim about a “dating website,” and said that the victim could make money through the website by going on “dates.” Easley and the victim later met Gray and Mertz at a residence in Camden. Easley, Mertz, and Gray agreed to advertise the minor online for commercial sex acts for the purpose of earning money. To do so, Gray, Mertz, and Easley drove the minor to a motel in Cherry Hill.

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

The next day, at a motel in Mount Laurel, New Jersey, at the defendants’ direction, the victim again engaged in sex acts in exchange for money with multiple individuals who responded to the advertisement. Later that evening, the defendants told the victim that they were taking the victim to Atlantic City, New Jersey, to meet another person who had responded to the advertisement and was willing to pay $1,200 for an entire evening with the victim. During the events on March 3, 2015, Gray was in possession of a semi-automatic firearm.

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

The count to which Gray pleaded guilty carries a statutory mandatory minimum of 10 years in prison, a statutory maximum of life in prison, and a maximum fine of $250,000. Sentencing is scheduled for Jan. 3, 2017.

On Aug. 17, 2016, Easley, pleaded guilty before Judge Sheridan to an information charging her with one count of sex trafficking of a minor and is scheduled to be sentenced Nov. 22, 2016.

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

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

The charges and allegations against Mertz remains merely an accusation, and he is considered innocent unless and until proven guilty.

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

CAMDEN, N.J. – An Atlantic City, New Jersey, man today admitted his role in a conspiracy to defraud the IRS of $119,880 in income taxes over three years, U.S. Attorney Paul J. Fishman announced today.

John Schultz, 74, pleaded guilty today before U.S. District Judge Joseph H. Rodriguez in Camden federal court to an information charging him with one count of conspiracy to defraud the United States.

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

Schultz, William Boland, and another conspirator were partners in Royal Rolling Chairs Inc., a business based in Atlantic City that provided rolling chair transportation services to patrons on the boardwalk.  As owners, they were responsible for accurately reporting income received by the business to the IRS.   

Schultz admitted that he and his two partners hid gross cash receipts from the operation of the business and did not report this revenue to the IRS. He admitted that the business maintained a second set of books, which tracked the unreported cash revenue taken out of the business.  The total tax loss from the conspiracy was $119,800.

The charge of conspiracy to defraud the United States carries a maximum potential penalty of five years in prison and a $250,000 fine, or twice the gain or loss from the offense. Sentencing is scheduled for Jan. 9, 2017.

Boland previously pleaded guilty to the same conspiracy charge and is scheduled to be sentenced by Judge Rodriguez on Oct. 25, 2016. Abdus Mian, the bookkeeper for Royal Rolling Chairs, pleaded guilty to making false statements to federal investigators and was sentenced on April 4, 2016 to one year of probation. 

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

The government is represented by Deputy Attorney in Charge Matthew J. Skahill of the U.S. Attorney=s Office in Camden.    

Defense counsel: Edwin J. Jacobs Jr. Esq., Atlantic City

TRENTON, N.J. – The middleman in a five-year insider trading scheme was sentenced today to 12 months in prison for receiving numerous trading tips from a law firm source and passing the tips on to his broker-dealer to trade, yielding net profits of more than $5.6 million, U.S. Attorney Paul J. Fishman announced.

Frank Tamayo, 43, of Brooklyn, New York, previously pleaded guilty before U.S. District Judge Michael A. Shipp to an information charging him with one count of conspiracy to commit securities and tender offer fraud, one count of securities fraud, and one count of tender offer fraud. Judge Shipp imposed the sentence today in Trenton federal court.

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

Tamayo, a mortgage broker, admitted that from 2009 to 2013, he obtained material nonpublic information from his friend and former law school classmate, Steven Metro, 42, of Katonah, New York. Metro was then the managing clerk of the New York office of Simpson Thacher & Bartlett LLP, a law firm specializing in mergers and acquisitions. The inside information divulged by Metro to Tamayo concerned mergers, acquisitions, or tender offers in which the firm represented a party or financial advisor. As the firm’s managing clerk, Metro did not personally work on most these transactions. Instead, Metro stole the information by scouring the firm’s computer system for client names and the keywords “merger agreement,” “bid letter,” “engagement letter,” and “due diligence.”

After stealing material information, Metro would personally meet Tamayo at bars, coffee shops, or other locations near their Manhattan workplaces. Tamayo admitted that during these meetings, Metro gave him the names and ticker symbols of the companies whose securities should be purchased, the general timing of the planned deals, and information related to how the deals would affect the issuers’ stock price once public. Tamayo would write the security’s ticker symbol on a small piece of paper or napkin and then commit the information to memory.

Tamayo would then meet with his broker-trader Vladimir Eydelman, 44, of Colts Neck, New Jersey, who was employed first at Oppenheimer & Co. and later at Morgan Stanley. Tamayo and Eydelman met at locations near Eydelman’s workplace, including the large clock in New York City’s Grand Central Terminal. Tamayo admitted that during these meetings, he would show Eydelman the paper or napkin with the ticker symbol of the company whose securities should be purchased. After Eydelman memorized the ticker symbol, Tamayo put the paper or napkin into his mouth and chewed it until it was destroyed.

Using the stolen information, Eydelman purchased securities for himself, family members, friends, and clients, including Tamayo. Eydelman quickly sold the shares and covered any options positions once the relevant deal was publicly announced and the stock price rose.

Tamayo admitted he reinvested the approximately $7,000 in profits that Metro made on the first deal, and updated Metro on the running balance of his profits from the insider trading scheme. As of October 2013, by which time the conspirators had traded ahead of at least 13 planned corporate transactions, Metro’s share of the profits had reached approximately $168,000. Metro sought to “cash out” his share of the accrued profits from the insider trading scheme, pressing Tamayo to “liberate some cash” during a meeting in January 2014. Eydelman paid approximately $7,000 in cash to Tamayo in February 2014, with the expectation that Tamayo would use the cash to compensate Metro for the inside information.

By exploiting the material information that Metro stole from the firm, Tamayo, Metro and Eydelman netted more than $5.6 million in illicit profits over the course of the five-year insider trading scheme.

In addition to the prison term, Judge Shipp sentenced Tamayo to three years of supervised release, fined him $15,000, and ordered him to pay restitution of $1,056,969.69

Metro and Eydelman have both pleaded guilty to their roles in the scheme. On Sept. 14, 2016 Metro was sentenced to 46 months in prison. Eydelman is scheduled for sentencing on Sept. 30, 2016.

U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, for the investigation leading to today’s sentencing.  He also thanked the U.S. Securities and Exchange Commission’s Market Abuse Unit, under the direction of Robert Cohen and Joseph Sansone.

The government is represented by Assistant U.S. Attorney Shirley U. Emehelu of the Special Prosecutions Division of the U.S. Attorney’s Office in Newark, and R. Joseph Gribko of the U.S. Attorney’s Office in Trenton, as well as Unit Acting Chief Barbara Ward and Assistant U.S. Attorney Jafer Aftab of the Office’s Asset Forfeiture and Money Laundering Unit.

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

Defense counsel: A. Ross Pearlson Esq. and Matthew E. Beck Esq., West Orange, New Jersey

NEWARK, N.J. – A member of the New Jersey set of the Grape Street Crips gang was sentenced today to 60 months in prison for conspiring to distribute crack-cocaine, U.S. Attorney Paul J. Fishman announced.

Max LaRue, a/k/a “Max,” 27, previously pleaded guilty before U.S. District Judge José Linares Judge Linares to an information charging him with one count of conspiracy to distribute crack-cocaine. Judge Linares imposed the sentence today in Newark federal court.

According to documents filed in these cases and statements made in court:

The Grape Street Crips controlled drug trafficking and other criminal activities in various areas of Newark. LaRue other members of the gang operated a continuing criminal enterprise in the area of 6th Avenue and North 5th Street in Newark. The enterprise allegedly sold crack-cocaine to other distributors of the drug, including other members of the gang. LaRue was a distributor who was a member of the gang and obtained crack-cocaine from the criminal enterprise.

To protect their gang and drug territory, the Grape Street Crips used “community guns” that were easily accessible to gang members. Law enforcement agents seized numerous firearms, including a .410-caliber assault rifle, a .45-caliber Thompson semi-automatic carbine, a 7.62-caliber assault rifle, and numerous semi-automatic handguns.

In addition to the prison term, Judge Linares sentenced LaRue to four years of supervised release.

U.S. Attorney Fishman credited special agents of the Drug Enforcement Administration, under the direction of Special Agent in Charge Carl J. Kotowski, and special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher, for the investigation leading to the charges. He also thanked prosecutors and detectives of the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Carolyn A. Murray, police officers and detectives of the Newark Police Department, under the direction of Public Safety Director Anthony Ambrose, and the Essex County Sheriff’s Office, under the direction of Armando B. Fontoura, for their work on the investigation.

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

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

Defense counsel: Michael J. Pappa Esq., Hazlet, New Jersey

Will Pay $1.3 Million in Penalties, Restitution

TRENTON, N.J. – A Weston, Connecticut, man who used a Panamanian bank account to conceal more than $1.5 million in income from the sale of duty-free alcohol and tobacco products pleaded guilty today to one count of conspiring to conceal assets and income from the IRS, U.S. Attorney Paul J. Fishman and Principal Deputy Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division announced.

Saul Hyatt, 53, pleaded guilty before U.S. District Judge Freda L. Wolfson in Trenton federal court to an information charging him with conspiracy to conceal assets in an undeclared bank account held in Panama for his benefit.

“The Panamanian banking system is not a haven to hide profits made from U.S. businesses,” U.S. Attorney Fishman said. “When U.S. taxpayers use foreign bank accounts to hide their assets, we will investigate and prosecute them to the fullest extent of the law.”

“The Department continues to vigorously pursue and prosecute those who conceal their assets and income in offshore accounts in an effort to evade paying their fair share of taxes,” Principal Deputy Assistant Attorney General Ciraolo said. “Nearly eight years after the IRS announced its first offshore voluntary disclosure program, individuals who fail to disclose their interests in foreign accounts and report income earned on these accounts should be well aware that there are significant consequences for this criminal conduct.” 

“Concealing income and assets offshore is not tax planning,” Special Agent in Charge Jonathan D. Larsen of IRS-Criminal Investigation, Newark Field Office, said.  “Plain and simple, this is international tax fraud. The facts in this case are clear.  Mr. Hyatt earned income through the sale of duty-free alcohol and tobacco products and intentionally had over $1.6 million of profits wired into an undeclared offshore bank account in Panama.  Today’s plea shows how determined we are at the IRS and Department of Justice in uncovering this type of international tax fraud and putting a stop to it.”

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

Hyatt conspired with another individual in the United States and others to conceal his assets and income derived from the sale of duty-free alcohol and tobacco products.  He used a registered Panamanian corporation, Centennial Group, to buy and sell the duty-free products.  The alcohol shipped through a customs-bonded warehouse in the Foreign Trade Zone in Fort Lauderdale, Florida.  The tobacco products, Chinese-brand cigarettes sold under the names “Chung Hwa” and “Double Happiness,” passed through a customs-bonded warehouse in North Bergen, New Jersey.  From 2006 to 2012, Hyatt directed that $1,627,832 in profits from the sale of duty-free alcohol and tobacco products be wired to his undeclared bank account in Panama.  Hyatt repatriated money from the Panamanian bank account to buy a Mercedes Benz SL 550R automobile and to pay for $19,000 in interior design goods and services. 

Americans are required to report to the IRS on Schedule B of a U.S. Individual Income Tax Return any financial interest in, or signature authority over, a financial account in a foreign country by identifying the country where the account was maintained.  They are also required to report all income earned from foreign financial accounts and, if the accounts have an aggregate value of more than $10,000 at any time during the calendar year, file with the Department of the Treasury a Report of Foreign Bank and Financial Accounts (FBAR).

The count to which Hyatt pleaded guilty carries a maximum potential penalty of five years in prison and a fine of $250,000 or twice his gain from the offense. Because he failed to file an FBAR report, he is obligated to pay $854,466 in penalties for failing to disclose the account and has agreed to file true and accurate tax returns.  He must also pay restitution to the IRS of $521,986.  Sentencing is scheduled for Jan. 6, 2017.

U.S. Attorney Fishman and Principal Deputy Assistant Attorney General Ciraolo credited special agents with IRS-Criminal Investigation, under the direction of Special Agent in‑Charge Jonathan D. Larsen, with the investigation leading to the guilty plea.

The government is represented by Assistant U.S. Attorney Joseph Mack, Deputy Chief of the U.S. Attorney’s Healthcare and Government Fraud Unit, and Trial Attorney Michael C. Vasiliadis of the Department of Justice Tax Division. 

Defense counsel: Dennis Kainen  Esq.

NEWARK, N.J. – A Bergen County, New Jersey, man was sentenced today to 51 months in prison for conspiring to defraud 15 victims of more than $3 million, U.S. Attorney Paul J. Fishman announced.

Paul Mancuso, 50, of Glen Rock, New Jersey, previously pleaded guilty before U.S. District Judge William J. Martini to one count of conspiracy to commit wire fraud. Judge Martini imposed the sentence today in Newark federal court.

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

On Aug. 21, 2014, a federal grand jury in Newark indicted Mancuso on one count of conspiracy to commit wire fraud and five counts of wire fraud. It also charged Pasquale Stiso, 55, of West Harrison, New York, with one count of conspiracy to commit wire fraud and one count of wire fraud.

Since 2009, Mancuso posed as a real estate investor, broker and developer, as well as a “hard money” lender for other investments. Stiso, a disbarred New York attorney, held himself out as an individual working with Mancuso on various investment projects.

Mancuso admitted that he and Stiso fraudulently obtained financing for projects that did not exist or in which they had no actual involvement. Some of the purported projects touted by Mancuso, Stiso, and other conspirators included investments in a phony ticket scam, the development of a pizzeria at a resort in the Bahamas, the development of a casino in Atlantic City, the development of a commercial shopping center, and the “flipping” of a piece of real estate in Matawan.

Victims lost all of their investments in Mancuso’s schemes. Instead of funding the purported projects, Mancuso and Stiso used the money for personal expenses and to finance their involvement in illegal gambling.

In addition to the prison term, Judge Martini sentenced Mancuso to three years of supervised release and ordered him to pay restitution of $3,266,250.

Stiso was tried and convicted of all 10 counts of a superseding indictment charging him with one count of conspiracy to commit wire fraud, six substantive counts of wire fraud, and three counts of money laundering following a seven-day trial before U.S. District Judge William J. Martini. He was sentenced in June 2016 to 43 months in prison.

U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher; special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen, and criminal investigators from the U.S. Attorney’s Office for the investigation leading to today’s guilty plea.

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

Defense counsel: Stacy Ann Biancamano Esq., Newark

NEWARK, N.J. – A Little Egg Harbor, New Jersey, man was sentenced today to 12 months in prison for his role in a scheme to steal and convert hundreds of blank U.S. Postal Service money orders, resulting in nearly $200,000 in losses, U.S. Attorney Paul J. Fishman announced.

Jonel Normil, 26, previously pleaded guilty before U.S. District Judge Madeline Cox Arleo to an information charging him with one count of conspiring to embezzle, convert to his use and the use of others U.S. Postal Service money orders. Judge Arleo imposed the sentence today in Newark federal court.

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

Normil was employed as a letter carrier with the U.S. Postal Service in Cape May Court House, New Jersey. He also picked up and dropped off mail at the U.S. Post Office in Stone Harbor, New Jersey.

Normil admitted that he used his position as a letter carrier to steal hundreds of U.S. Postal Service money orders from the Stone Harbor and Cape May Court House post offices. Normil gave the stolen money orders to other conspirators, who made them look legitimate and imprinted them with dollar values of $900 or $1,000 before depositing them into bank accounts or cashing them at post offices in New Jersey, New York, and Georgia.

In addition to the prison term, Judge Arleo sentenced Normil to three years of supervised release.

U.S. Attorney Fishman credited special agents of the U.S. Postal Service, Office of the Inspector General, under the direction of Executive Special Agent in Charge Monica Weyler of the Eastern Area Field Office, and the U.S. Postal Inspection Service, under the direction of Inspector in Charge David W. Bosch, Philadelphia Division, with the investigation leading to today’s guilty plea.

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

Defense counsel: H. Robert Boney Esq., Mays Landing, New Jersey

NEWARK, N.J. - A Seminole, Florida, man was sentenced today to 51 months in prison for using phony invoices to defraud multiple factoring businesses, including one based in Bergen County, New Jersey, U.S. Attorney Paul Fishman announced.

Karl Stehlin, a/k/a “Mark Sawyer,” 61, previously pleaded guilty before U.S. District Judge William J. Martini to Count One of an indictment charging him with wire fraud. Judge Martini imposed the sentence today in Newark federal court. 

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

Stehlin admitted that from June 2014 through September 2014, he defrauded a Bergen County factoring business that purchased accounts receivable in return for short term financing. Stehlin created a bogus Idaho-based company, Sawyer Express Transportation Inc., and emailed accounts receivable invoices to the factoring company for transportation services that were never provided. As a result, Stehlin was able to defraud the factoring company out of $220,000 in advance payment on those invoices. 

During his plea hearing, Stehlin also admitted using the same methods to defraud a Glendale, California, factoring business out of $127, 953.34 and a Las Vegas factoring business out of $524,025.28.

In addition to the prison term, Judge Martini ordered Stehlin to serve three years of supervised release and pay restitution of $837,618.29. 

U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, with the investigation leading to today’s sentencing. He also thanked special agents of the FBI Tampa Division, under the direction of Special Agent in Charge Paul Wysopal, for their assistance. 

The government is represented by Assistant U.S. Attorneys Lakshmi Srinivasan Herman and Andrew Kogan of the U.S. Attorney’s Office Economic Crimes Unit and Acting Chief Barbara Ward of the Asset Forfeiture and Money Laundering Unit in Newark.

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

NEWARK, N.J. – A Brooklyn, New York, man was sentenced today to one year and one day in prison on multiple counts in connection with a multimillion-dollar, multi-state burglary spree, U.S. Attorney Paul J. Fishman announced.

Anthony “T.J.” Hanks, 37, was convicted in November 2015 of one count of conspiracy to transport stolen property in interstate commerce and three counts of interstate transportation of stolen property; his cousin, Daniel “Tokyo” Gatson, 44, was also convicted of conspiracy to transport stolen property in interstate commerce and 11 counts of interstate transportation of stolen property. They were convicted following a three-week trial before U.S. District Judge William J. Martini, who imposed the sentence today in Newark federal court.

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

The conspiracy, led by Gatson, was responsible for 27 burglaries and attempted burglaries in six states, stealing $3.4 million in cash and valuables.

Typically, Hanks, Gatson and others would identify homes in affluent residential neighborhoods and conduct surveillance of the target residences, looking for indications that no one was home.

Before robbing a target residence, they would cut wires running to and from the residence, including phone, cable, and alarm connections. Then, while wearing masks and gloves, they would forcibly break in to the target residence, usually by smashing through the front door, while a getaway driver remained nearby in a rented minivan, often maintaining contact with one of the burglars inside the target residence by cell phone.

In addition to the prison term, Judge Martini sentenced Hanks to three years of supervised release and ordered to pay $2.1 million in restitution. Gatson was sentenced in June 2016 to 25 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; and the Bergen County Prosecutor’s Office, under the direction of Prosecutor Gurbir S. Grewal, with the investigation leading to today’s guilty verdicts.

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

Defense counsel:

Hanks: Peter S. Gordon Esq., Forest Hills, New York

Gatson: Michael Pedicini Esq., Chatham, New Jersey

Attorney General Loretta E. Lynch, Assistant Attorney General for National Security John P. Carlin, FBI Director James B. Comey, U.S. Attorney Preet Bharara of the Southern District of New York, U.S. Attorney Paul J. Fishman of the District of New Jersey, Assistant Director-in-Charge William Sweeney of the FBI's New York Field Office, Special Agent in Charge Timothy Gallagher of the FBI's Newark Field Office and Commissioner James O’Neill of the New York Police Department (NYPD) announced that Ahmad Khan Rahami, aka Ahmad Rahimi, has been charged in the U.S. District Court for the Southern District of New York and the U.S. District Court for the District of New Jersey, for conducting and attempting to conduct bombings in New York City and various locations in New Jersey on Sept. 17, 2016, and Sept. 18, 2016.

Rahami, 28, of Elizabeth, New Jersey, is charged in a complaint filed in the Southern District of New York with one count of using and attempting to use weapons of mass destruction, in violation of 18 U.S.C. § 2332a, which carries a maximum sentence of life imprisonment; one count of bombing and attempting to bomb a place of public use, in violation of 18 U.S.C. § 2332f, which carries a maximum sentence of life imprisonment; one count of destroying and attempting to destroy property by means of fire or explosive, in violation of 18 U.S.C. § 844(d), which carries a maximum sentence of 20 years in prison; and use of a destructive device in furtherance of a crime of violence, namely, the use and attempted use of weapons of mass destruction, in violation of 18 U.S.C. § 924(c), which carries a mandatory minimum consecutive sentence of 30 years in prison, all in connection with Rahami’s alleged detonation of an explosive device and efforts to detonate explosives in New York City.

Rahami is also charged in a complaint filed in the District of New Jersey with two counts of using and attempting to use weapons of mass destruction, in violation of 18 U.S.C. § 2332a, which carries a maximum sentence of life imprisonment on each count; one count of bombing and attempting to bomb a place of public use and public transportation system, in violation of 18 U.S.C. § 2332f, which carries a maximum sentence of life imprisonment; one count of attempting to destroy property by means of fire or explosive, in violation of 18 U.S.C. § 844(i), which carries a maximum sentence of 20 years in prison; and two counts of using a destructive device in furtherance of a crime of violence, namely, the use and attempted use of weapons of mass destruction, in violation of 18 U.S.C. § 924(c), each count of which carries a mandatory minimum consecutive sentence of 30 years in prison and, if convicted of both counts, a mandatory sentence of life imprisonment, all in connection with Rahami’s alleged efforts to detonate explosives in Seaside Park, New Jersey, and Elizabeth, New Jersey.

Rahami will first be transported by the U.S. Marshals Service, pursuant to a writ of habeas corpus ad prosequendum, to the U.S. District Court for the Southern District of New York to face the charges filed in the Southern District of New York.  More than 30 people were injured as a result of the detonation of a bomb in the Chelsea area of New York City.

Assistant Attorney General Carlin and U.S. Attorneys Bharara and Fishman praised the outstanding efforts of the FBI’s New York Joint Terrorism Task Force, which principally consists of agents from the FBI and detectives from the NYPD, and the FBI’s New Jersey Joint Terrorism Task Force.  

The prosecution in the Southern District of New York is being handled by Assistant U.S. Attorneys Nicholas J. Lewin, Emil J. Bove III, Andrew J. DeFilippis and Shawn G. Crowley, with assistance from Trial Attorney Brian Morgan of the National Security Division’s Counterterrorism Section.

The prosecution in the District of New Jersey is being handled by Assistant U.S. Attorneys Dennis C. Carletta, Francisco J. Navarro, Margaret Ann Mahoney and James M. Donnelly, with assistance from Trial Attorney Brian Morgan of the National Security Division’s Counterterrorism Section.

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

Rahami Ahmad Khan NY Complaint

Rahami Ahmad Khan NJ Complaint

Attorney General of the United States Loretta E. Lynch, Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Paul J. Fishman for the District of New Jersey, U.S. Attorney Preet Bharara for the Southern District of New York, Federal Bureau of Investigation (“FBI”) Director James B. Comey, Assistant Director-in-Charge William Sweeney of the FBI New York Field Office, Special Agent in Charge Timothy Gallagher of the FBI Newark Field Office and Commissioner of the Police Department for the City of New York (“NYPD”) James O’Neill announced that Ahmad Khan Rahami, a/k/a “Ahmad Rahimi,” has been charged in the United States District Court for the Southern District of New York and the United States District Court for the District of New Jersey, for conducting and attempting to conduct bombings in New York City and various locations in New Jersey on September 17, 2016, and September 18, 2016.

Rahami, 28, of Elizabeth, New Jersey, is charged in a Complaint filed in the Southern District of New York with one count of using and attempting to use weapons of mass destruction, in violation of 18 U.S.C. § 2332a, which carries a maximum sentence of life imprisonment; one count of bombing and attempting to bomb a place of public use, in violation of 18 U.S.C. § 2332f, which carries a maximum sentence of life imprisonment; one count of destroying and attempting to destroy property by means of fire or explosive, in violation of 18 U.S.C. § 844(d), which carries a maximum sentence of 20 years in prison; and use of a destructive device in furtherance of a crime of violence, namely, the use and attempted use of weapons of mass destruction, in violation of 18 U.S.C. § 924(c), which carries a mandatory minimum consecutive sentence of 30 years in prison, all in connection with Rahami’s alleged detonation of an explosive device and efforts to detonate explosives in New York City.

Rahami is also charged in a Complaint filed in the District of New Jersey with two counts of using and attempting to use weapons of mass destruction, in violation of 18 U.S.C. § 2332a, which carries a maximum sentence of life imprisonment on each count; one count of bombing and attempting to bomb a place of public use and public transportation system, in violation of 18 U.S.C. § 2332f, which carries a maximum sentence of life imprisonment; one count of attempting to destroy property by means of fire or explosive, in violation of 18 U.S.C. § 844(i), which carries a maximum sentence of 20 years in prison; and two counts of using a destructive device in furtherance of a crime of violence, namely, the use and attempted use of weapons of mass destruction, in violation of 18 U.S.C. § 924(c), each count of which carries a mandatory minimum consecutive sentence of 30 years in prison and, if convicted of both counts, a mandatory sentence of life imprisonment, all in connection with Rahami’s alleged efforts to detonate explosives in Seaside Park, New Jersey, and Elizabeth, New Jersey.

Rahami will first be transported by the United States Marshals Service, pursuant to a writ of habeas corpus ad prosequendum, to the United States District Court for the Southern District of New York to face the charges filed in the Southern District of New York. More than 30 people were injured as a result of the detonation of a bomb in the Chelsea area of New York City.

Mr. Bharara and Mr. Fishman praised the outstanding efforts of the FBI’s New York Joint Terrorism Task Force, which principally consists of agents from the FBI and detectives from the NYPD, and the FBI’s New Jersey Joint Terrorism Task Force.  Mr. Bharara and Mr. Fishman also thanked the Counterterrorism Section of the Department of Justice’s National Security Division for its assistance.

The prosecution in the Southern District of New York is being handled by that Office’s Terrorism and International Narcotics Unit.  Assistant U.S. Attorneys Nicholas J. Lewin, Emil J. Bove III, Andrew J. DeFilippis, and Shawn G. Crowley are in charge of the prosecution, with assistance from Trial Attorney Brian Morgan of the National Security Division’s Counterterrorism Section.

The prosecution in the District of New Jersey is being handled by that Office’s National Security Unit.  Assistant U.S. Attorneys Dennis C. Carletta, Francisco J. Navarro, Margaret Ann Mahoney, and James M. Donnelly are in charge of the prosecution, with assistance from Trial Attorney Brian Morgan of the National Security Division’s Counterterrorism Section.

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

TRENTON, N.J. – A Jersey City, New Jersey, man was sentenced today to 300 months in prison for supplying heroin and cocaine to a large-scale drug trafficking organization that operated in Ocean and Monmouth Counties and elsewhere in New Jersey, U.S. Attorney Paul J. Fishman announced.

Thomas Shannon, a/k/a “Cuzzo,” 37, was previously convicted of four counts of an indictment charging him with one count of conspiracy to distribute cocaine and more than a kilogram of heroin, one count of possession with intent to distribute heroin and cocaine, one count of possession of a firearm in furtherance of a drug trafficking crime, and one count of engaging in a monetary transaction in criminally derived property. Shannon was convicted following a two-week trial before U.S. District Judge Peter G. Sheridan, who imposed the sentence today in Trenton federal court.

Between March and May 2014, 21 other individuals, including numerous alleged members of the drug trafficking organization to which Shannon supplied narcotics, were charged in two separate criminal complaints with conspiring to distribute heroin and other related offenses. The complaint referred to the drug trafficking organization as the “Britt-Young DTO,” after its leaders, Robert Britt, a/k/a “True,” and Rufus Young, a/k/a “Equan,” a/k/a “E-Money,” a/k/a “Kintock.” Of the 22 individuals charged, 21 have been convicted to date. 

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

Between October 2013 and March 2014, Shannon conspired with others to distribute heroin and cocaine in Ocean and Monmouth counties, including to the Britt-Young DTO. Shannon obtained some of his narcotics from conspirators in California, who shipped packages containing large quantities of heroin and cocaine from California to Shannon in New Jersey.

The packages were sent to a residence in Perth Amboy, New Jersey, and received by another conspirator, who then gave the packages to Shannon. Shannon then transported the packages to stash house locations that he controlled in Asbury Park and Long Branch, New Jersey, where he packaged and prepared the narcotics for distribution to other dealers. Shannon packaged some of the heroin in small plastic bags that were “stamped” with brand names or markings to distinguish it from other narcotics sold in or around the Monmouth County area.

To pay for the drug shipments, Shannon and others acting at his direction deposited cash into numerous third-party bank accounts provided by the conspirators in California, who then withdrew the cash at bank branch locations in California. 

Shannon used numerous cellular telephones to communicate with his conspirators, including through text messages, and he and his conspirators often spoke in code to disguise the illegal nature of their communications. For example, Shannon and a leader of the Britt-Young DTO referred to cocaine as “Kristine.” Shannon also acquired and possessed firearms in furtherance of the drug trafficking conspiracy, including a Smith and Wesson .38 caliber revolver and a Sturm, Ruger & Co. Inc. .40 caliber handgun.           

In addition to the prison term, Judge Sheridan sentenced Shannon to five years of supervised released.

U.S. Attorney Fishman credited special agents of the FBI, Red Bank Resident Office, under the direction of Special Agent in Charge Timothy Gallagher in Newark; officers of the Brick Township Police Department, under the direction of Chief James Riccio: and officers of the Toms River Police Department, under the direction of Chief Mitchell A. Little, with the investigation leading to today’s verdict.

He also thanked special agents of the Bureau of Alcohol Tobacco Firearms and Explosives (ATF), under the direction of Special Agent in Charge George P. Belsky; inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge Maria L. Kelokates; officers of the Monmouth County Prosecutor’s Office, under the direction of Prosecutor Christopher Gramiccioni; and officers of the Ocean County Prosecutor’s Office, under the direction of Prosecutor Joseph D. Coronato.

He also thanked the Monmouth County Sheriff’s Office and the Neptune Township, Asbury Park, Marlboro, and Long Branch police departments for their roles in the case.

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

Defense Counsel:  Edward Bertucio Esq., Eatontown, New Jersey

NEWARK, N.J. – The United States filed a civil forfeiture complaint seeking the possession of six pit bull-type dogs which were allegedly involved in an interstate dog fighting venture in violation of the federal Animal Welfare Act, U.S. Attorney Paul Fishman for the District of New Jersey and Assistant Attorney General John Cruden for the Environment and Natural Resources Division of the Department of Justice announced today.

According to the complaint filed yesterday in Newark federal court:

The six pit bull-type dogs were seized on June 1, 2016 from a private residence in Westville, New Jersey, pursuant to a federal search warrant. The residence was owned by the family of Justin Love, 36, of Glassboro, New Jersey, who was arrested the same day and charged by criminal complaint with violating the Animal Welfare Act.

The condition of a majority of the dogs, including scarring and aggression towards other dogs, was consistent with dog fighting and related training. For example, one of the female dogs, subsequently identified as “Momba,” had severe scarring and showed signs of other serious injuries consistent with her participation in dog fights. Her physical condition also indicated that she was used for breeding, which was further corroborated by intercepted phone conversations allegedly involving Love.

Other indications of unlawful dog fighting were found on the Westville property, including paraphernalia such as “flirt” poles,” which are used to condition a dog and foster natural hunting instincts, and a spring pole, which is used to strengthen a dog’s neck and jaw muscles.

Injectable medication, syringes, sterile gel, and topical and oral antibiotics were also found. Dog fighters often attempt to treat their dogs themselves rather than seek veterinary attention, which might raise suspicion regarding the cause of injuries.

Five of the six dogs were found in pens located in the yard. The pens were made of metal fencing and separated by thick metal slats, and some of the dogs were secured inside the pens with chains. The sixth dog was confined in an elevated cage with a wire fence bottom.

Dog fighting is a violent contest in which two dogs—bred and conditioned for fighting—are released by their owners or handlers in a controlled environment to attack each other and fight for purposes of entertainment and gambling. Fights average one to two hours in length and end when one dog withdraws, when a handler “picks up” his dog and forfeits the match, or when one or both dogs die.  Persons engaged in dog fighting exclusively use pit bull-type dogs due to their short coat, compact muscular build, and the aggressive temperament that some exhibit toward other dogs.

The federal Animal Welfare Act makes it a felony punishable by up to five years in prison to fight dogs or to possess, train, sell, buy, deliver, receive, or transport them for that purpose. The statute further authorizes the seizure and forfeiture of animals involved in dog fighting. Once the dogs are forfeited or surrendered to federal authorities, they can be evaluated and placed for adoption.

This case is part of Operation Grand Champion, a coordinated effort across numerous federal judicial districts to combat organized dog fighting. The phrase “Grand Champion” is used by dog fighters to refer to a dog with more than five victories.

Operation Grand Champion is a continuing investigation by the U.S. Department of Agriculture, Office of the Inspector General, under the direction of Special Agent in Charge William G. Squires; Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Terence S. Opiola; and the FBI, under the direction of Special Agent in Charge Timothy Gallagher, in coordination with the Department of Justice.

The government is represented by Assistant U.S. Attorney Sarah Devlin and Barbara Ward, Acting Chief of the Asset Forfeiture and Money Laundering Section of the District of New Jersey, and the Justice Department’s Wildlife and Marine Resources Section Trial Attorneys Mary Hollingsworth and Assistant Section Chief Meredith Flax.

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

Civil forfeiture cases are “in rem” proceedings—or proceedings against things. In this case, the complaint is brought against the six dogs, not its owner or any other person.

The Humane Society of the Unites States is assisting with the care of the dogs seized by federal law enforcement.

The United States filed a civil forfeiture complaint seeking the possession of six pit bull-type dogs which were allegedly involved in an interstate dog fighting venture in violation of the federal Animal Welfare Act, announced Assistant Attorney General John C. Cruden for the Environment and Natural Resources Division and U.S. Attorney Paul Fishman for the District of New Jersey.

According to the complaint filed yesterday in Newark, New Jersey, federal court:

The six pit bull-type dogs were seized on June 1, from a private residence in Westville, New Jersey, pursuant to a federal search warrant.  The residence was owned by the family of Justin Love, 36, of Glassboro, New Jersey, who was arrested the same day and charged by criminal complaint with violating the Animal Welfare Act.

The condition of a majority of the dogs, including scarring and aggression towards other dogs, was consistent with dog fighting and related training.  For example, one of the female dogs, subsequently identified as “Momba,” had severe scarring and showed signs of other serious injuries consistent with her participation in dog fights.  Her physical condition also indicated that she was used for breeding, which was further corroborated by intercepted phone conversations allegedly involving Love.

Other indications of unlawful dog fighting were found on the Westville property, including paraphernalia such as flirt poles, which are used to condition a dog and foster natural hunting instincts, and a spring pole, which is used to strengthen a dog’s neck and jaw muscles.

Injectable medication, syringes, sterile gel, and topical and oral antibiotics were also found.  Dog fighters often attempt to treat their dogs themselves rather than seek veterinary attention, which might raise suspicion regarding the cause of injuries.

Five of the six dogs were found in pens located in the yard.  The pens were made of metal fencing and separated by thick metal slats, and some of the dogs were secured inside the pens with chains.  The sixth dog was confined in an elevated cage with a wire fence bottom.

Dog fighting is a violent contest in which two dogs—bred and conditioned for fighting—are released by their owners or handlers in a controlled environment to attack each other and fight for purposes of entertainment and gambling.  Fights average one to two hours in length and end when one dog withdraws, when a handler “picks up” his dog and forfeits the match, or when one or both dogs die.   Persons engaged in dog fighting exclusively use pit bull-type dogs due to their short coat, compact muscular build, and the aggressive temperament that some exhibit toward other dogs.

The federal Animal Welfare Act makes it a felony punishable by up to five years in prison to fight dogs or to possess, train, sell, buy, deliver, receive, or transport them for that purpose.  The statute further authorizes the seizure and forfeiture of animals involved in dog fighting.  Once the dogs are forfeited or surrendered to federal authorities, they can be evaluated and placed for adoption.

This case is part of Operation Grand Champion, a coordinated effort across numerous federal judicial districts to combat organized dog fighting.  The phrase “Grand Champion” is used by dog fighters to refer to a dog with more than five victories.

Operation Grand Champion is a continuing investigation by the U.S. Department of Agriculture, Office of the Inspector General, under the direction of Special Agent in Charge William G. Squires; Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Terence S. Opiola; and the FBI, under the direction of Special Agent in Charge Timothy Gallagher, in coordination with the Department of Justice.

The government is represented by Assistant U.S. Attorney Sarah Devlin and Barbara Ward, Acting Chief of the Asset Forfeiture and Money Laundering Section of the District of New Jersey and the Justice Department’s Wildlife and Marine Resources Section Trial Attorneys Mary Hollingsworth and Assistant Section Chief Meredith Flax.

The charges and allegations against Love are merely accusations and he is presumed innocent unless and until proven guilty.

Civil forfeiture cases are “in rem” proceedings—or proceedings against things. In this case, the complaint is brought against the six dogs, not its owner or any other person.

The Humane Society of the Unites States is assisting with the care of the dogs seized by federal law enforcement.

NEWARK, N.J. – A former Jersey City police officer today admitted accepting more than $230,000 in corrupt payments, in violation of the Jersey City Municipal Code provisions governing off-duty employment, from employers who were operating worksites around the city, U.S. Attorney Paul J. Fishman announced. 

Juan Romaniello, 54, of East Hanover, New Jersey, pleaded guilty before U.S. District Judge John Michael Vazquez in Newark federal court to an information charging him with one count of conspiracy to commit fraud and accept corrupt payments and one count of filing a false tax return. He was released on $250,000 unsecured bond.

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

Romaniello was a police officer with the Jersey City Police Department (JCPD) from 1988 to 2014.  From 2004 to 2014, his duties included serving as the “pick coordinator” for Jersey City’s North District. In that role, it was his job to assign police officers to off-duty details.  Under Jersey City’s Municipal Code, police officers could perform off-duty assignments only when the police officer was not on duty. The code mandated that Jersey City control the hiring and compensation process through which employers hired off-duty police officers. Off-duty police officers are not permitted to receive cash payments from the employer, nor can they accept checks or money orders made payable directly to them.  The employers are supposed to pay Jersey City, which pays the off-duty police officer after withholding certain fees, taxes and deductions, including an administrative fee payable to the city.   

Romaniello agreed with numerous employers to cut Jersey City out of the process to hire and pay off-duty police officers. He permitted employers to operate at worksites without the presence of a police officer when it was required by law for public safety reasons, such as ensuring that obstructions at construction sites did not pose a danger to vehicular or pedestrian traffic. Sometimes Romaniello actually provided the public safety services, but did not notify Jersey City.  On most occasions, Romaniello collected payments in cash, money orders and checks payable to him, directly from the employers, depriving Jersey City of money that it would have received otherwise and avoiding reporting requirements to Jersey City and the IRS. The JCPD is cooperating in the investigation.

Under terms of the plea agreement, Romaniello will forfeit approximately $297,000, a substantial part of which were monies that he obtained through this corrupt and fraudulent activity and which he kept at his residence. In addition, for tax years 2009 to 2013, Romaniello did not report to the IRS $201,340 of ill-gotten gains.  The plea agreement requires him to pay the IRS approximately $90,000 in restitution for unpaid taxes.      

The count of conspiracy to commit fraud and accept corrupt payments carries a maximum potential penalty of five years in prison; the tax fraud count carries a maximum of three years in prison. Both counts also carry a fine of the greater of $250,000 or twice the gross gain or loss from the offense. Sentencing is scheduled for Jan. 10, 2017.

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 IRS-Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen, for the investigation leading to today’s guilty plea.   

The government is represented by Assistant U.S. Attorneys José R. Almonte and Vikas Khanna of the U.S. Attorney’s Office Special Prosecutions Division and Assistant U.S. Attorney Sarah Devlin of the U.S. Attorney’s Office Asset Forfeiture and Money Laundering Unit.

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

NEWARK, N.J. – A Newark man was sentenced today to 60 months in prison for his role in a drug trafficking conspiracy controlled by the New Jersey set of the Grape Street Crips, U.S. Attorney Paul J. Fishman announced.

Rakeem Hankerson, a/k/a “Rocco,” 25, previously pleaded guilty before U.S. District Judge Madeline Cox Arleo to a superseding information charging him with conspiracy to distribute 28 grams or more of crack-cocaine. Judge Arleo imposed the sentence today in Newark federal court.

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

The New Jersey Grape Street Crips gang controlled drug trafficking and other criminal activities in various areas of Newark, including the neighborhood of 6th Avenue and North 5th Street. Hankerson was a member of the New Jersey Grape Street Crips who purchased distribution quantities of crack-cocaine from more senior gang members and sold it to retail level customers on the street.

To protect their gang and drug territory, the New Jersey Grape Street Crips operating in the 6th Avenue and North 5th Street location used “community guns” that were easily accessible to gang members. During the course of the investigation, law enforcement agents seized numerous firearms, including a .410 caliber assault rifle, a.45 caliber Thompson semi-automatic carbine, a 7.62 caliber assault rifle, and numerous semi-automatic handguns.

Another member of the conspiracy, Christopher Coelho, a/k/a “Brazil,”27, of Newark, was sentenced Sept. 13, 2016, to 10 years in prison and five years of supervised release.

In addition to the prison term, Judge Arleo sentenced Hankerson to four years of supervised release.

U.S. Attorney Fishman credited special agents of the Drug Enforcement Administration, under the direction of Special Agent in Charge Carl J. Kotowski, and special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher, for the investigation leading to today’s sentencing. U.S. Attorney Fishman also thanked prosecutors and detectives of the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Carolyn A. Murray, police officers and detectives of the Department of Public Safety and Newark Police Division, under the direction of Director Anthony A. Ambrose, and the Essex County Sheriff’s Office, under the direction of Armando B. Fontoura, for their work on the investigation.

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

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

Defense counsel:

Hankerson: John P. Holliday Esq., Trenton, New Jersey

Coelho: Samuel M. Braverman Esq., Bronx, New York

TRENTON, N.J. - The former managing clerk for a prominent, international law firm was sentenced today to 46 months in prison for stealing sensitive, confidential information for use in a five-year insider trader scheme that yielded net profits of more than $5.6 million, U.S. Attorney Paul J. Fishman announced.

Steven Metro, 42, of Katonah, New York, previously pleaded guilty before U.S. District Judge Michael A. Shipp to the first two counts of an indictment charging him with securities fraud and conspiracy to commit securities and tender offer fraud. Judge Shipp imposed the sentence today in Trenton federal court.

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

From 2009 to 2013, Metro stole material nonpublic information from his then-employer, Simpson Thacher & Bartlett LLP, one of the nation’s premier mergers and acquisitions firms. The information related to corporate transactions, such as mergers and acquisitions or tender offers, in which the firm represented a party or financial advisor to the transaction. As the firm’s managing clerk, Metro did not personally work on most of these transactions. Instead, Metro stole the inside information by scouring the firm’s computer system for client names and the keywords “merger agreement,” “bid letter,” “engagement letter,” and “due diligence.”

After obtaining the inside information, Metro would meet his friend, Frank Tamayo, 43, of Brooklyn, New York, at a bar, coffee shop, or other location near their respective workplaces in midtown Manhattan. During these meetings, Metro provided Tamayo material information pertaining to, among other things, the names and/or ticker symbols of the companies whose securities should be purchased. Tamayo would write the security’s ticker symbol on a small piece of paper or napkin and commit the rest of the inside information to memory.

Afterwards, Tamayo would meet Vladimir Eydelman, 44, formerly of Colts Neck, New Jersey, usually at a location near Eydelman’s workplace, such as at the large clock in New York City’s Grand Central Terminal. Tamayo would show Eydelman the paper or napkin with the ticker symbol of the company whose securities should be purchased. After Eydelman memorized the ticker symbol, Tamayo would place the paper or napkin into his mouth and chew it until it was destroyed.

After receiving the inside information provided by Metro, whom Eydelman knew as Tamayo’s “source,” Eydelman then purchased securities for himself, family members, friends, and/or clients, including Tamayo. Eydelman quickly sold the shares and covered any positions once the relevant deal was publicly announced and the stock price rose. 

Throughout the course of the approximately five-year scheme, Tamayo reinvested the approximately $7,000 in profits that Metro made on the first deal, and updated Metro on the running balance of his profits from the insider trading scheme. As of October 2013, by which time the conspirators had traded ahead of at least 13 planned corporate transactions, Metro’s share of the profits had reached approximately $168,000. Metro sought to “cash out” his share of the accrued profits from the insider trading scheme, pressing Tamayo to “liberate some cash” during a meeting in January 2014. Eydelman paid approximately $7,000 in cash to Tamayo in February 2014, with the expectation that Tamayo would use the cash to compensate his law firm source – i.e., Metro – for providing them the inside information.

By exploiting the information that Metro took from the firm, Metro, Tamayo and Eydelman netted more than $5.6 million in illicit profits over five years.

In addition to the prison term, Judge Shipp sentenced Metro to three years of supervised release and fined him $10,000.

Tamayo and Eydelman have both pleaded guilty to their roles in the scheme; Tamayo is scheduled to be sentenced Sept. 15, 2016, and Eydelman is scheduled to be sentenced Sept. 22, 2016. 

U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, for the investigation leading to today’s sentencing.  He also thanked the U.S. Securities and Exchange Commission’s Market Abuse Unit, under the direction of Robert Cohen and Joseph Sansone.

The government is represented by Assistant U.S. Attorney Shirley U. Emehelu of the Special Prosecutions Division of the U.S. Attorney’s Office in Newark, and R. Joseph Gribko of the U.S. Attorney’s Office in Trenton, as well as Unit Acting Chief Barbara Ward and Assistant U.S. Attorney Jafer Aftab of the Office’s Asset Forfeiture and Money Laundering Unit.

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

Defense counsel:  James R. Froccaro Jr. Esq., Port Washington, New York

NEWARK, N.J. – A Henderson, Nevada, man today admitted his role in a stock market manipulation scheme that artificially inflated the stock price of four publicly traded companies through manipulative trading and other fraudulent means, U.S. Attorney Paul J. Fishman announced. 

Nathan Montgomery, 35, pleaded guilty today before U.S. District Judge Jose Linares in Newark federal court to an information charging him with conspiracy to commit securities fraud. 

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

From 2008 through 2010, Montgomery, a penny stock promoter, participated in an extensive “pump-and-dump” scheme in which he and others fraudulently inflated the prices of certain shares in order to sell them later at artificially inflated prices. The scheme involved four public companies: BioNeutral Group Inc. (BONU), NXT Nutritionals Holdings Inc. (NXTH), Mesa Energy Holdings Inc. (MSEH), and Clear-Lite Holdings Inc. (CLRH) (collectively, the “Target Companies”).

As part of the scheme, Montgomery and others first obtained control over large blocks of the free trading shares of the Target Companies. Next, Montgomery and others “pumped” the price of those shares by, among other things, engaging in manipulative trading of the stocks of the Target Companies and disseminating promotional materials encouraging others to purchase them. After pumping the stocks, Montgomery and the other conspirators “dumped” them by selling large volumes of the Target Companies’ stock to victim investors. The target companies’ stock price would then drop, resulting in losses to the victims. 

In order to fraudulently inflate the price and volume of the Target Companies’ stocks, Montgomery paid cash kickbacks to Donald Toomer, an investment advisor in Las Vegas, so that Toomer would purchase the Target Companies’ stock on behalf of his clients. The purpose of those purchases was to, among other things, create the false appearance of market interest and demand in the stock; build trading volume that would be attractive to potential investors who would later receive promotional materials about the stock; and generate income to fund the promotional campaigns, including email blasts and newsletters, that occurred in the later phases of the scheme. Additionally, Montgomery and other conspirators engaged in coordinated trading of the Target Companies’ stock using various brokerage accounts that they owned or controlled, including the accounts of friends, family and other third parties.           

The scheme collectively generated approximately $33 million in illicit trading proceeds, of which Montgomery received approximately $20 million.

The conspiracy charge to which Montgomery pleaded guilty carries a maximum potential penalty of five years in prison and a $250,000 fine, or twice the gain or loss from the offense. Sentencing is scheduled for Dec. 20, 2016.

On Dec. 15, 2015, Samuel DelPresto of Holmdel, New Jersey, pleaded guilty to one count of conspiracy to commit securities fraud for his role in the scheme.  On Dec. 21, 2015, a federal grand jury returned a five-count indictment against Toomer charging him with conspiracy to commit securities fraud and investment adviser fraud and several counts of securities fraud and investment adviser fraud. That matter is currently pending before Judge Linares. A trial date has not yet been set.   

U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, for the investigation leading to Montgomery’s guilty plea. He also thanked the U.S. Securities and Exchange Commission’s New York Regional Office, under the direction of Andrew Calamari, for its assistance in this matter.

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

Defense Counsel: Mark Bailus Esq., Las Vegas, Nevada, Marvin G. Pickholz Esq., New York, William B. Pollard III Esq., New York

TRENTON, N.J. – A Hudson County, New Jersey, man was sentenced today to 264 months in prison for posing as a teenage boy, and at times a teenage girl, to solicit underage females online to produce images of themselves engaged in sexually explicit conduct, possessing, and distributing those images to others, U.S. Attorney Paul J. Fishman announced.

Erik Vanderbeck, 49, of Bayonne, New Jersey, was previously convicted of two counts of production of child pornography, one count of distribution of child pornography and one count of possession of child pornography. The jury deliberated approximately one hour following a one-week trial before U.S. District Judge Freda L. Wolfson in Trenton federal court. Judge Wolfson imposed the sentence today in Trenton federal court.

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

Vanderbeck allegedly met various underage girls in Internet chat rooms while pretending to be a teenage boy, and at times, a teenage girl. Over the course of their correspondence, Vanderbeck would ask them to send him nude images of themselves. Once Vanderbeck received nude images, he would threaten to post the victim’s nude images online unless she sent more. In some cases, Vanderbeck would send nude images that he had received from certain of his victims to other minors to induce them to self-produce child pornography. When one of the victims threatened to report Vanderbeck to the authorities, he replied, “The cops will never catch me.”                       

Law enforcement officers executed a search warrant at Vanderbeck’s home in Bayonne on July 22, 2014. They recovered computer equipment belonging to Vanderbeck containing images appearing to be of child pornography. Several of his victims said they produced images of child sexual abuse out of fear and in response to his threats. 

In addition to the prison term, Judge Wolfson sentenced Vanderbeck to 10 years of supervised release.

U.S. Attorney Fishman credited postal inspectors with the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge James Ball in Newark, and the Bayonne Police Department, under the direction of Chief Drew Niekrasz, with the investigation leading to the today’s sentencing. He also thanked the Missouri Internet Crimes Against Children Task Force for its role in the investigation.

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

Defense counsel: Joshua Markowitz Esq., Lawrenceville

CAMDEN, N.J. - Federal and local law enforcement authorities arrested five people this morning and charged three others for their alleged roles in a crack cocaine and heroin trafficking organization operating in Camden, U.S. Attorney Paul J. Fishman announced.

Jason Boyd, 36, Preston Thomas, 30, Julian Dickerson, 24, Derek Stallworth, 20, and Tony Wilson, 24, all of Camden, were arrested today and charged by complaint with drug trafficking conspiracy. They appeared this afternoon before U.S. Magistrate Judge Joel Schneider in Camden federal court and were detained.

Joseph Boyd, 31, of Camden, Jeffrey Whitaker, 32, of Collingswood, New Jersey, and Nafeez Griffin, 30, of Camden – all of whom are presently incarcerated on other charges – were also charged with drug trafficking conspiracy and will have their initial appearances at a later date.

According to the complaints:

The defendants are members of a drug trafficking organization that, from November, 2015 through September 2016, dealt crack cocaine and heroin in and around Camden, with criminal activities concentrated on the 1100 block of Lansdowne Avenue. Joseph Boyd, Jason Boyd, and Thomas are the alleged leaders and managers of the operation. Whitaker, Stallworth, Wilson, Dickerson, and Griffin staffed the block during assigned shifts and distributed drugs to customers who approached on foot and in vehicles.

The arrests and charges are the result of an investigation that began in late 2015 and involved controlled purchases of crack cocaine and heroin and multiple authorized wiretaps of phones used by members of the conspiracy.

The drug trafficking conspiracy count carries a maximum potential penalty of 20 years in prison and a $5 million fine.

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

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

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

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

CAMDEN, N.J. - An Atlantic County man who was previously sentenced for wire fraud was charged today with using telephone dating services to lure and defraud multiple women after he escaped from a halfway house and later, while being on federal supervised release, U.S. Attorney Paul J. Fishman announced.

Patrick Giblin, 52, formerly of Ventnor, New Jersey, is charged by complaint with one count of wire fraud. He made his initial appearance today before U.S. Magistrate Judge Ann Marie Donio in Camden federal court and was detained.

Giblin was previously sentenced in April 2007 to 115 months in federal prison on wire fraud charges related to a similar scheme to defraud women. Giblin was sentenced again on Oct. 2, 2015 to 24 months in prison for violating the terms of his supervised release. He was taken into custody today following the completion of this sentence at FCI-Fairton.

According to the complaint:

Between December 2012 and Dec. 16, 2014, Giblin contacted telephone dating services in an attempt to lure and defraud women by preying on their hope of developing a relationship. Giblin used a series of false representations to convince women on these services to loan him money based on the false promise that he would pay them back.

Giblin posted advertisements and messages on the telephone dating services wherein he falsely claimed, among other things, that he was moving to a victim’s location, that he owned oceanfront property in Atlantic City, and that he worked in the casino business. 

Giblin fraudulently told the victims he needed to borrow money for bills, car repairs, moving expenses, and other phony expenditures. He received money from the women via interstate wire services such as Western Union and Moneygram. The complaint – which only includes a sample of the victims involved in the scheme – discusses eight separate victims in five different states and Canada, who lost a total of over $7,000 to Giblin. The investigation remains ongoing. 

During the course of the scheme, Giblin, who was on federal supervised release for previously defrauding over 50 women for over $200,000 in losses, unlawfully fled New Jersey for Colonie, New York, where he continued to receive money until his arrest by the U.S. Marshals on Dec. 16, 2014. Giblin has been in federal custody since that time.

Giblin faces a statutory maximum term of imprisonment of 20 years and a $250,000 fine if convicted.

U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, with the investigation leading to the charges.  Fishman also thanked the U.S. Marshals Service, under the direction of U.S. Marshal Juan Mattos in Newark, for its assistance in this case.   

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

The government is represented by Deputy Attorney in Charge Matthew J. Skahill and Assistant U.S. Attorney Gabriel J. Vidoni of the U.S. Attorney’s Office in Camden.

Defense counsel: Christopher O’Malley, Esq.

CAMDEN, N.J. - A Sicklerville, New Jersey, man was sentenced today to 15 months in prison for his role in a conspiracy to evade payroll taxes on cash wages paid to illegal immigrants employed at his dry cleaning business, U.S. Attorney Paul J. Fishman announced. 

Phillip Hui, 38, previously pleaded guilty before U.S. District Judge Robert B. Kugler to an information charging him with one count of conspiracy to obstruct and impede the IRS relating to the failure to collect, account for and pay payroll taxes and one count of harboring illegal aliens. Judge Kugler imposed the sentence today in Camden federal court.

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

Hui and Kathy Lei, 36, of Williamstown, New Jersey, owned New Eastern Cleaners in Voorhees Township, New Jersey.  Lei, along with two other individuals, owned a house on South Main Street in Williamstown.

Hui knew he was required to verify that all of his employees were eligible to work in the United States, either as U.S. citizens or immigrants who had work authorization from Immigration and Customs Enforcement. However, at various times in 2012 and 2013, Hui and Lei hired foreign nationals B generally from Mexico or Guatemala B who did not have legal status in the United States. While working at New Eastern Cleaners, the undocumented immigrants lived in the South Main Street house.

At various times, Hui or Lei paid the undocumented immigrants in cash. They were required to work six days a week, approximately 10 hours a day and paid between $400 and $500 dollars per week. Their rent was part of the employment compensation. Hui also admitted that he would transport them or arrange their transportation between the South Main Street house and New Eastern Cleaners.

Hui admitted that when Lei filed Employer's Quarterly Federal Tax Return, Form 941, for all tax quarters in 2012 and the first three quarters in 2013, she only reported wages paid to legal employees of New Eastern Cleaners.  She failed to report the wages and pay employment taxes for at least 13 undocumented immigrant employees in 2012 and at least 14 undocumented immigrant employees in 2013.

By filing the false tax forms in 2012 and 2013, Lei and Hui failed to pay the IRS employment taxes of at least $97,104 for the undocumented immigrant employees.

In addition to the prison term, Judge Kugler sentenced Hui to three years of supervised release and ordered him to pay restitution of $98,864. On May 2, 2016, Lei pleaded guilty to the same charges and is scheduled to be sentenced Oct. 14, 2016.

U.S. Attorney Fishman credited special agents of Immigration and Customs Enforcement, Homeland Security Investigations (ICE-HSI), under the direction of Special Agent in Charge Terence S. Opiola, 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 guilty plea. He also thanked ICE’s Enforcement and Removal Operations (ERO), under Newark Field Office Director John Tsoukaris, for its assistance in this investigation.

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

Defense counsel:

Hui: Jeffrey Zucker Esq., Camden,

Lei: Michael Engle Esq., Philadelphia

TRENTON, N.J. – A federal grand jury returned an indictment today against a senior member of a large-scale drug trafficking organization that distributed heroin in Ocean and Monmouth Counties and elsewhere in New Jersey, U.S. Attorney Paul J. Fishman announced.

Robert Britt, 44, a/k/a “True,” of Asbury Park, New Jersey, is charged in a one-count indictment with conspiracy to distribute one hundred grams or more of heroin.

According to documents filed in this case:

Between July 2010 and March 2014, Britt conspired with others to distribute heroin in Ocean and Monmouth counties. In furtherance of the conspiracy, Britt used various hotel rooms and apartments to store, process, and package heroin for distribution to others.  Britt and others also used numerous cellular telephones and coded language to discuss drug transactions, including requests for specific types and quantities of narcotics.

In April 2013, prior to beginning a term of incarceration, Britt transferred the day-to-day operations and certain heroin customers to Rufus Young, 43, a/k/a “Equan,” a/k/a “E-Money,” a/k/a “Kintock,” of Asbury Park.

Even while in prison, Britt maintained a hands-on role in the heroin distribution business. Britt spoke with Young using a concealed contraband cell phone that Britt maintained in violation of prison rules and regulations.  During those conversations, Britt instructed Young on how to operate their drug business, including methods for developing new heroin customers, avoiding detection by law enforcement, and identifying new suppliers.

Between March and May 2014, 21 other members of the drug trafficking organization, all of whom have since been convicted, were charged in two separate criminal complaints with conspiring to distribute heroin and other related offenses. The complaint referred to the drug trafficking organization as the “Britt-Young DTO” after its two leading members.

On May 25, 2016, a federal jury convicted Thomas Shannon, a major supplier of narcotics to the Britt-Young DTO, of various offenses relating to the conspiracy.  

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

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

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

CAMDEN, N.J. – A West Reading, Pennsylvania, man was sentenced today to 24 months in prison for his role in a conspiracy to defraud FirstPlus Financial Group Inc. (FPFG), a Texas-based financial services company allegedly targeted for extortionate takeover and looting by a group led by Lucchese organized crime family member Nicodemo S. Scarfo, U.S. Attorney Paul J. Fishman announced.

Cory Leshner, 33, previously pleaded guilty before U.S. District Judge Robert B. Kugler to a superseding information charging him with conspiracy to commit wire fraud. Judge Kugler imposed the sentence today in Camden federal court.

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

Leshner and 12 others – including Scarfo, a member of the Lucchese La Cosa Nostra (LCN) crime family, and Salvatore Pelullo, an associate of the Lucchese and Philadelphia LCN families – were variously charged in a November 2011 indictment with a racketeering conspiracy, including acts of securities fraud, wire fraud, mail fraud, bank fraud, extortion, interstate travel in aid of racketeering, money laundering and obstruction of justice. The indictment charged that FPFG was targeted for extortionate takeover and looting by a group of the conspirators. A substantial part of the enterprise’s activities occurred in New Jersey, including communications and the transfer of money into and out of the state. Cory Leshner admitted that he joined the conspiracy in April 2007.

Leshner admitted that he assisted Scarfo and Pelullo in managing family trusts and limited liability companies on behalf of Scarfo and Pelullo as part of the scheme to defraud FPFG. Leshner said that Pelullo directed Leshner in the use of various bank accounts through which Pelullo received hundreds of thousands of dollars between July 2007 and April 2008 as part of the scheme. The money included the proceeds of the fraud that Pelullo allegedly received as part of a fraudulent “consulting” agreement between his shell company, Seven Hills Management, and codefendant William Maxwell, a Texas attorney who served as “special counsel” to FPFG as part of the scheme. The money also involved proceeds received from the fraudulent sale of Scarfo and Pelullo’s worthless companies to FPFG in 2007.  The receipt of the fraudulent proceeds often occurred in the form of wire transfers from accounts in Pennsylvania to accounts in New Jersey.

Leshner also said that he was a law school student during the scheme. Leshner graduated from law school in 2010 and became an attorney in Pennsylvania in 2011. As part of his plea agreement, Leshner agreed to notify the Pennsylvania Supreme Court of his guilty plea and to accept any disciplinary action brought by disciplinary officials as a result of the guilty plea and sentence. Leshner also agreed to not seek the reinstatement of his license to practice law while serving any sentence of imprisonment imposed in the case. 

Scarfo, Pelullo, and the Maxwells were convicted at trial on July 3, 2014, and sentenced to prison. Scarfo and Pelullo were sentenced to 30 years in prison. William Maxwell was sentenced to 20 years in prison and John Maxwell to 10 years in prison.

In addition to the prison term, Judge Kugler sentenced Leshner to three years of supervised release and ordered to pay restitution of $14.2 million.

U.S. Attorney Fishman praised special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark; the Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, under the direction of Special Agent in Charge Michael C. Mikulka, New York Region; and the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of George P. Belsky in Newark.  He also thanked the FBI under the direction of Special Agent in Charge William F. Sweeney Jr. in Philadelphia for its vital assistance and the U.S. Securities and Exchange Commission for its role.

The government is represented by Assistant U.S. Attorney Howard Wiener, of the New Jersey U.S. Attorney’s Office Organized Crime/Gangs Unit and Criminal Division in Camden, and Trial Attorney Adam Small of the Organized Crime and Gang Section of the Justice Department’s Criminal Division.

Defense counsel: Rocco C. Cipparone Jr. Esq., Haddon Heights, New Jersey

NEWARK, N.J. – A Bronx, New York, man today admitted his role in a scheme to obtain stolen identity information and use it to file phony tax returns with the IRS, U.S. Attorney Paul J. Fishman announced.            

Jhan Luis Mejia Marcelino, 27, pleaded guilty before U.S. District Judge John Michael Vazquez to an information charging him with one count of conspiracy to commit theft of government funds, one count of theft of government funds, and one count of aggravated identity theft. 

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

Mejia admitted that from January 2013 through May 2014, he and others obtained stolen personal identifying information, including names and Social Security numbers, of victims located in New Jersey, Puerto Rico, and elsewhere. Afterwards, Mejia and others used the information to file fraudulent federal tax returns. Mejia admitted that, once they received the refunds, they converted the checks to cash or other proceeds for their own benefit, causing losses of over $1 million to the U.S. Treasury.

The conspiracy offense is punishable by a maximum potential penalty of five years in prison. The theft of government funds count is punishable by a maximum potential penalty of 10 years in prison. Both counts are punishable by a $250,000 fine, or twice the gain or loss resulting from the offense. The aggravated identity fraud charge is punishable by a mandatory two-year sentence to be served consecutively to any other term imposed.            

U.S. Attorney Fishman credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen; the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge Cynthia Shoffner; and the U.S. Secret Service, under the direction of Special Agent in Charge Mark Mckevitt, with the investigation. 

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

NEWARK, N.J. – A Miami man today admitted that he was responsible for depositing over $4.7 million in fraudulently obtained tax refund checks as part of a massive stolen identity income tax scheme, U.S. Attorney Paul J. Fishman announced.

Roberto Diaz, 47, formerly of Demarest, New Jersey, pleaded guilty before U.S. District Judge Claire C. Cecchi in Newark federal court to an information charging him with one count of conspiracy to commit theft of government funds, one count of theft of government funds, and one count of aggravated identity theft.

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

Members of the conspiracy obtained personal identifiers, such as dates of birth and Social Security numbers, belonging to Puerto Rican citizens. Afterwards, they completed Individual Income Tax Return 1040 Forms using the fraudulently obtained information and made it appear that the “taxpayers” listed on the fraudulent returns were entitled to refunds. They also directed the U.S. Treasury Department to issue refunds to locations they could control or access in various ways.

At his plea hearing, Diaz admitted that he received fraudulently obtained refund checks and deposited them into banks accounts he controlled or were in the names of his associates or their companies. Diaz also admitted that he and others conspired to bribe a mail carrier to intercept refund checks before they were delivered to the people who had their identity stolen as part of the scheme.

Diaz admitted that during the course of the conspiracy, he was responsible for depositing or causing the deposit of over $4.7 million in fraudulently obtained tax refund checks.

Diaz is facing potential penalties of five years in prison for the conspiracy charge and 10 years in prison for the theft of government funds charge, both of which are also punishable by a $250,000 fine or twice the gain or loss resulting from the offense. For the aggravated identity theft charge, Diaz is facing a mandatory two years in prison which must run consecutive to any other term imposed. Sentencing is scheduled for Jan. 27, 2017.

Diaz was previously charged in September 2012 along with 13 other defendants in multiple, separate criminal complaints. The $65 million scheme involved more than 8,000 fraudulent income tax returns and losses to the United States of over $12 million.

By tracing the specific IP addresses from which the returns were submitted, law enforcement officers identified that only a handful of IP addresses were responsible for filing the fraudulent returns. During the course of the investigation, law enforcement identified certain “hot spots” of activity and intercepted more than $22 million in fraudulently claimed refunds before they were delivered to members of the conspiracy.

U.S. Attorney Fishman credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen; the U.S. Postal Inspection Service, under the direction of  Acting Inspector in Charge Cynthia Shoffner; the U.S. Secret Service, under the direction of Special Agent in Charge Mark Mckevitt; the Drug Enforcement Administration, under the direction of Special Agent in Charge Carl J. Kotowski, and U.S. Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge Terence S. Opiola, with the investigation.

The government is represented by Assistant U.S. Attorneys Mala Ahuja Harker of the U.S. Attorney’s Office Special Prosecutions Division, and Zach Intrater, Deputy Chief of the Economic Crimes Unit.

Defense counsel:  Paul Brickfield, River Edge, New Jersey

NEWARK, N.J. – A White Plains, New York, woman was sentenced today to 162 months in prison for robbing a Glen Rock Savings Bank and fraudulently using an elderly victim’s checks to steal $198,750, U.S. Attorney Paul J. Fishman announced.

Michelle Cantatore, 53, previously pleaded guilty before U.S. District Judge Esther Salas to an information charging her with one count of bank robbery and one count of wire fraud. Cantatore had also previously admitted robbing two other banks in Connecticut. These robberies were taken into consideration at today’s sentencing.

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

Cantatore admitted fashioning a paintball gun to look like an actual firearm and using it to rob the Glen Rock Savings Bank on Feb. 15, 2015. Cantatore entered the bank wearing a wig and sunglasses and, while brandishing the paintball gun, shouted to everyone in the bank: “Put your hands up. This is for real. This is a robbery. I have a gun.”  

Cantatore fled the bank after taking money from the vault and a teller station. Law enforcement later tracked her to a hotel room in Atlantic City, New Jersey.

At her plea hearing, Cantatore also admitted robbing a Greenwich Bank and Trust in Riverside, Connecticut, and a JP Morgan Chase Bank in Darien, Connecticut, on Jan. 30, 2015 and Feb. 24, 2015, respectively. In both instances she used an altered paintball gun to threaten the victims.

Cantatore also admitted stealing $198,750 from a sick an elderly man by taking his checks, writing them out to accounts she controlled, and cashing them without his knowledge.

In addition to the prison term, Judge Salas sentenced Cantatore to three years of supervised release and ordered her to pay restitution of $406,703.13.

U.S. Attorney Fishman credited Special Agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark; the Glen Rock Police Department, under the direction of Lt. Daniel Dour; the N.J. State Police, under the direction of Col. Rick Fuentes, the Passaic County Prosecutor’s Office, under the direction of Prosecutor Camelia M. Valdes, and the New York office of the FBI with the investigation. He also thanked the Paramus, Paterson, Roxbury and Wayne police departments for their roles.

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

Defense counsel: Kathleen Theurer Esq.

NEWARK, N.J. – U.S. Healthcare Supply LLC and two executives have agreed to pay the United States more than $12.2 million to resolve allegations that they violated the federal False Claims Act by using a fictitious entity to make unsolicited telephone calls to Medicare beneficiaries in order to sell them durable medical equipment. 

U.S. Attorney Paul J. Fishman of the District of New Jersey and Principal Deputy Assistant Attorney General Benjamin C. Mizer of the Justice Department’s Civil Division announced the settlement today.

U.S. Healthcare Supply, based in Milford, New Jersey, has agreed to pay $5 million plus interest and Jon P. Letko, its owner and president, has agreed to pay $1 million plus interest. His brother, Edward J. Letko, the owner and president of Oxford Diabetic Supply Inc., a medical equipment supplier that allegedly also participated in the scheme, has agreed to pay $6 million plus interest. 

“Cold-calling people to sell them expensive medical equipment is prohibited for a reason: unsuspecting patients shouldn’t be coerced into making medical decisions about devices and equipment – which they may not even need – on the basis of a sales pitch,” U.S. Attorney Fishman said.

The settlement announced today resolves allegations that U.S. Healthcare Supply and Oxford Diabetic Supply set up and controlled an entity called Diabetic Experts Inc., which they used to make unsolicited telephone calls to suspected Medicare beneficiaries in order to sell them durable medical equipment. The companies submitted claims to Medicare for the equipment that they sold based on these unsolicited calls, in violation of the Medicare Anti-Solicitation statute. 

“We will continue to hold health care providers accountable for attempting to circumvent Medicare statutes and regulations that help prevent the submission of claims for medically unnecessary services and supplies,” Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division, said. “Arrangements which clearly disregard program requirements in order to enhance the financial interests of health care providers will not be tolerated.”

U.S. Attorney Fishman and Principal Deputy Assistant Attorney General Mizer credited special agents of the U.S. Department of Health and Human Services – Office of the Inspector General, under the direction of Special Agent in Charge Scott J. Lampert, with the investigation leading to today’s settlement.

The government is represented by Assistant U.S. Attorney Charles Graybow of the U.S. Attorney’s Office Health Care and Government Fraud Unit in Newark and Trial Attorney John Henebery of the Justice Department’s Civil Division. 

U.S. Attorney Paul J. Fishman reorganized the health care fraud practice at the New Jersey U.S. Attorney’s Office shortly after taking office, including creating a stand-alone Health Care and Government Fraud Unit to handle both criminal and civil investigations and prosecutions of health care fraud offenses. Since 2010, the office has recovered more than $1.31 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.

Defense counsel: Joseph F. Savage Jr. Esq., Boston, and Jura C. Zibas Esq., New York

NEWARK, N.J. – A narcotics supplier for the New Jersey Grape Street Crips was sentenced today to 180 months in prison for distributing hundreds of grams of heroin in and around Newark, U.S. Attorney Paul J. Fishman announced today.

Gabriel Henderson, 36, of Newark, previously pleaded guilty before the U.S. District Judge Esther Salas to an information charging him with one count of conspiracy to distribute heroin. Judge Salas imposed the sentence today in Newark federal court.

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

Henderson admitted that between December 2014 and May 2015, he conspired with others to distribute brick quantities of heroin to members and associates of the Grape Street Crips. Henderson and his conspirators sold heroin in and around the Pennington Court public-housing complex located on Pennington Street and the John W. Hyatt public-housing complex located on Hawkins Street, both in Newark.

In addition to the prison term, Judge Salas sentenced Henderson to five years of supervised release.

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

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

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

Defense counsel: Howard B. Brownstein, Union City, New Jersey

CAMDEN, N.J. – A Cumberland County, New Jersey, man allegedly connected to and living with an individual involved in a dog fighting conspiracy was arrested today for possessing dogs for the purpose of dog fighting, U.S. Attorney Paul Fishman, District of New Jersey, and Assistant Attorney General John Cruden, DOJ Environment and Natural Resources Division, announced.

Robert A. Elliott, Sr., 47, of Millville, New Jersey, was charged by complaint with two counts of possessing pit bull-type dogs for dog fighting ventures in New Jersey and elsewhere. He is expected to appear this afternoon before U.S. Magistrate Judge Joel Schneider in Camden federal court.

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

The federal Animal Welfare Act makes it a felony to fight dogs or to possess, train, sell, buy, deliver, receive, or transport dogs intended for use in dog fighting. 

On June 1, 2016, Frank Nichols and other individuals were charged by complaint with violations of the federal Animal Welfare Act pertaining to dog fighting. That day, law enforcement officers executed a search warrant on a residence on a multi-acre property in Millville where Nichols lived. Another defendant, Robert Elliott, also lived at the residence.

During the search of the residence, law enforcement officers seized 13 live pit bull-type dogs. Seven of the dogs were kept on heavy chains in a wooded area behind the house. The dogs were spaced so that they could not reach one another. Two additional dogs were housed individually in pens in the wooded area near the chained dogs. Law enforcement officers found three more dogs in shipping crates in the unfinished basement. One of the 13 dogs, who appeared ill, was found in a crate in a room on the first floor.

Several of the dogs had scars and other signs of injury, and all of the dogs had untreated veterinary conditions. Law enforcement also found other indications that the dogs were used in dog-fighting ventures, such as:

• Break sticks, which are used to pry open a dog’s mouth in order to release a hold that the dog has on another dog;

• A stand often called a “rape rack” (or “breeder stand” as referred to by defendant Robert Elliott) designed to hold a female dog off the ground and immobilize her while a male dog mounts her. The device is used where the female dog is too dog-aggressive to mate otherwise;

• A box containing veterinary medications, a skin stapler, numerous needles and syringes, catheters, IV bags and tubing, sutures, and suture removing tools;

• Testosterone boosting supplements, which are often used by dog fighters to increase muscle mass and aggression of dogs before a fight;

• Dog pedigrees and printouts of dogs from dog fighting registries, including pedigrees related to the pit bull-type dogs found at his residence

Elliott claimed ownership of several of the dog fighting paraphernalia found in his home and indicated that he and his family owned 10 of the 13 pit bull-type dogs found at his residence.

The counts of possession of an animal for participation in an animal fighting venture each carry a maximum potential penalty of up to five years in prison.

This case is part of Operation Grand Champion, a coordinated effort across numerous federal judicial districts to combat organized dog fighting. The phrase “Grand Champion” is used by dog fighters to refer to a dog with more than five dog-fighting “victories.”

Operation Grand Champion is a continuing investigation by the U.S. Department of Agriculture, Office of the Inspector General, under the direction of Special Agent in Charge William G. Squires; Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Terence S. Opiola; and the FBI, under the direction of Special Agent in Charge Timothy Gallagher, in coordination with the Department of Justice.

The government is represented by Assistant U.S. Attorneys Jihee Suh and Kathleen O’Leary of the District of New Jersey, and the Justice Department’s Environmental Crimes Section Trial Attorneys Ethan Eddy and Shennie Patel.

The Humane Society of the Unites States is assisting with the care of the dogs seized by federal law enforcement.

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

NEWARK, N.J. – A Passaic County, New Jersey, man is scheduled to appear in federal court today in connection with the robbery of a TD Bank in Hawthorne, New Jersey, on Feb. 17, 2016, U.S. Attorney Paul J. Fishman announced.

Alejandro Ortiz, 20, of Haskell, New Jersey, is charged by complaint with one count of bank robbery. He is expected to appear this afternoon before U.S. Magistrate Judge James B. Clark III in Newark federal court.

Robert Somers 44, of Little Falls, New Jersey, is charged in the same complaint. He was arrested and appeared in court before U.S. Magistrate Judge Leda Dunn Wettre on Aug. 26, 2016. He remains in federal custody.

According to the complaint:

On Feb.17, 2016, the TD Bank was robbed by a man, later identified as Somers, who was wearing a hooded sweatshirt, hat with red stripe, dark pants, and gloves. Somers was also holding a newspaper, which covered the bottom portion of his face. After Somers entered the bank, he allegedly handed a teller a note that read, in sum and substance, “this is a hold up,” and made similar verbal statements.

The teller handed Somers cash. Somers demanded more money and a second teller handed him additional cash. Afterwards, Somers fled the bank in a car allegedly driven by Ortiz. Later that evening, Ortiz was pulled over by law enforcement and arrested. The clothes that Somers had worn during the robbery were recovered from Ortiz’s vehicle. 

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

U.S. Attorney Fishman credited Special Agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark; the Hawthorne Police Department, under the direction of Chief Richard McAuliffe; the Pennsylvania State Police, under the direction of Colonel Tyree C. Blocker; and the Passaic County Prosecutor’s Office, under the direction of Prosecutor Camelia M. Valdes with the investigation leading to the charges.

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

The government is represented by Assistant U.S. Attorney Karen D. Stringer of the U.S. Attorney’s Office in Newark.

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

Emmanuel Gonzalez, 32, pleaded guilty before U.S. District Judge Peter G. Sheridan in Trenton federal court to an information charging him with conspiracy to distribute and possess with intent to distribute a kilogram or more 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, 48, of Miami, and Alberto Mora, 52, of Morriston, Florida, parked at an intersection near a store in Clifton. That afternoon, Gonzalez and Edwin Alamo Jr., 21, of Bronx, drove to the tractor trailer and left with a suitcase given to them by Mora.

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

The drug distribution conspiracy charge to which Gonzalez pleaded guilty carries a mandatory minimum penalty of 10 years in prison, a maximum potential penalty of life in prison and a $10 million fine. Sentencing is set for Dec. 15, 2016. The charges against the remaining defendants are merely accusations, and they are presumed innocent unless and until proven guilty.

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

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.

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