District of New Jersey

NEWARK, N.J. – Pharmaceutical Innovations Inc., based in Newark, New Jersey, pleaded guilty today to criminal charges and resolved a civil suit arising from the company’s distribution of ultrasound gel contaminated with bacteria, U.S. Attorney Paul J. Fishman of the District of New Jersey and Principal Deputy Assistant Attorney General Benjamin C. Mizer of Justice Department’s Civil Division announced. 

Pharmaceutical Innovations pleaded guilty before U.S. District Judge Esther Salas in Newark federal court to an information charging it with two misdemeanor counts of introducing adulterated medical devices into interstate commerce. In addition to placing the company on two years of probation, Judge Salas ordered the company to pay a criminal fine of $50,000 and to forfeit an additional $50,000 – the approximate value of the adulterated gel.

In the civil settlement, which was also resolved today, Pharmaceutical Innovations agreed to the forfeiture and destruction of particular gel products that tested exceptionally high for infectious bacteria and agreed to a permanent injunction that requires independent experts and auditors to conduct regular inspections and certifications at the company’s expense.

“Pharmaceutical Innovations shipped defective products that exposed hospital patients to dangerous bacterial contamination,” U.S. Attorney Fishman said. “Today’s plea agreement and civil settlement require Pharmaceutical Innovations to accept responsibility for the contamination and take the necessary steps to prevent it from happening again.”

“The sale of adulterated medical devices puts patients at great risk,” said Principal Deputy Assistant Attorney General Mizer. “Device manufacturers that fail to comply with good manufacturing practices, thereby threatening patient safety, will be held accountable.”

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

Doctors and hospitals use ultrasound gel to take ultrasound scans, sonograms, EKGs, and similar procedures. In February 2012, a Michigan hospital reported that 16 surgical patients were infected with Pseudomonas aeruginosa, a bacterial pathogen.  The hospital believed the infections were associated with a particular lot of Pharmaceutical Innovations ultrasound gel.

A sample of that lot then tested positive for Pseudomonas aeruginosa.  A second lot was shipped in April 2012 and found to be contaminated with two types of bacteria, Pseudomonas aeruginosa and Klebsiella oxytoca.

The U.S. Department of Justice filed a civil suit in October 2014 against Pharmaceutical Innovations and its founder, owner, and longtime president, Gilbert Buchalter (Gilbert Buchalter was later dropped from the case; his son, Charles Buchalter, became company president and was added to the case).  The civil complaint alleged that the company was selling medical devices that the Food and Drug Administration (FDA) had not approved or cleared, that it was violating current good manufacturing practices, and that it failed to take required actions after receiving reports in February 2012 of serious injuries associated with its products.

The Consent Decree of Permanent Injunction requires Pharmaceutical Innovations to submit a detailed compliance plan to FDA within 20 days, and to have outside experts certify in writing by Oct. 31, 2016 that the company meets current good manufacturing practice requirements. At the company’s expense, the FDA will then conduct a follow-up inspection. For the next three years, Pharmaceutical Innovations must hire outside auditors to conduct and submit detailed audit reports to FDA. In addition, the company will forfeit and pay for the destruction of contaminated gel that the U.S. Marshals Service seized in April 2012 as part of a seizure and forfeiture case filed by the United States.

The investigations leading to the corporate guilty plea and civil settlements were conducted by special agents of the FDA’s Office of Criminal Investigations’ New York Field Office, under the direction of Acting Special Agent in Charge Jeffrey Ebersole.

Assistant U. S. Attorney R. David Walk Jr. of the District of New Jersey’s Health Care and Government Fraud Unit represented the government in the criminal prosecution, with the assistance of Associate Chief Counsel Lynn M. Marshall of the Department of Health and Human Services’ Office of General Counsel-Food and Drug Division. The government was represented in the civil cases by Trial Attorney Daniel K. Crane-Hirsch of the Department’s Consumer Protection Branch, Senior Counsel Michele Lee Svonkin and Associate Chief Counsel Julie A. Dohm of the Department of Health and Human Services’ Office of General Counsel–Food and Drug Division, Assistant U.S. Attorney Lucy Muzzy of the District of New Jersey’s Health Care and Government Fraud Unit, and Peter Gaeta of the District of New Jersey’s Asset Forfeiture and Money Laundering Unit.

U.S. Attorney Fishman reorganized the health care fraud practice at the U.S. Attorney’s Office of the District of New Jersey, including creating a stand-alone Health Care and Government Fraud Unit, which handles 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: A. Ross Pearlson Esq., West Orange, New Jersey

TRENTON, N.J. – A Somerset County, New Jersey, man was sentenced today to 24 months in prison for possessing images of child sexual abuse on his computer, U.S. Attorney Paul J. Fishman announced.

Cliff Ramsay, 31, of Raritan, New Jersey, previously pleaded guilty before U.S. District Judge Freda L. Wolfson to an information charging him with one count of possession of child pornography. Judge Wolfson imposed the sentence today in Trenton federal court.

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

On Feb. 25, 2015, and Feb. 27, 2015, Ramsay – at the time a music teacher at a public middle school in Hunterdon County – accessed a website known to contain images, videos, and other material containing images of child sexual abuse. A search warrant was executed at Ramsay’s home on July 28, 2015, and numerous files containing child pornography were found on his computer.

In addition to the prison term, Judge Wolfson sentenced Ramsay to five years of supervised release. He will also be required to register as a sex offender.

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 the Somerset County Prosecutor’s Office, under the direction of Acting Prosecutor Michael H. Robertson; the Hunterdon County Prosecutor’s Office, under the direction of Anthony P. Kearns III; the Raritan Police Department, under the direction of Chief Kenneth McCormick; and the Readington Police Department, under the direction of Chief Sebastian Donaruma, for their assistance with this investigation.

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

Defense counsel: Joshua D. Altman Esq., Trenton

CAMDEN, N.J. – A Vineland, New Jersey, man today admitted his role in a scheme to defraud a bank and to filing fraudulent tax returns, U.S. Attorney Paul J. Fishman announced.

Richard T. Pepe, 69, pleaded guilty before Chief U.S. District Judge Jerome B. Simandle in Camden federal court to a superseding information charging him with one count of conspiracy to commit bank fraud and one count of fraud and false Statements on his 2008 U.S. Individual Income Tax Return.

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

From 2004 through October 2008 Pepe knowingly conspired and agreed with others to execute a scheme to defraud M&T Bank. The object of the conspiracy was for Pepe, the general manager of Chevrolet 73, and others acting on Pepe’s behalf, to fraudulently obtain money from M&T Bank, intended as floor plan financing for Chevrolet 73, by providing false information to the bank. Pepe then converted that money – $2.95 million – to his own use to pay for personal expenses for himself and his family members.

Pepe also admitted he made false statements on his 2008 U.S. Individual Income Tax Return by claiming his total income for tax year 2008 to be $36,628, when he knew and believed his total income to be in excess of that amount.

The conspiracy charge to which Pepe pleaded guilty carries a maximum potential penalty of five years in prison and a fine of $250,000.  The fraud and false statement charge to which Pepe pleaded guilty carries a maximum potential penalty of three years in prison and a fine of $250,000. As part of the plea agreement, Pepe will make full restitution for all losses and consented to the entry of a forfeiture money judgment of $2.95 million. Sentencing is scheduled for Oct. 14, 2016.

U.S. Attorney Fishman credited special agents of the FBI Philadelphia Division’s Cherry Hill Resident Agency, under the direction of Special Agent in Charge William F. Sweeney Jr., and special agents of the IRS-Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen, with the investigation leading to today’s guilty plea.

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

Defense counsel: Thomas Young Esq. Assistant Federal Public Defender, Camden

NEWARK, N.J. – A Mountainside, New Jersey, man was sentenced today to 70 months in prison for his role in an international procurement network that obtained and smuggled more than $65 million worth of electronics from the United States to Russia in violation of export control laws, U.S. Attorney Paul J. Fishman announced.

Alexander Brazhnikov Jr., 37, a naturalized United States citizen born in Moscow, previously pleaded guilty before U.S. District Judge William J. Martini to an information charging him with one count of conspiracy to commit money laundering, one count of conspiracy to smuggle electronics from the United States, and one count of conspiracy to violate the International Emergency Economic Powers Act (IEEPA). Brazhnikov also agreed to the entry of a forfeiture money judgment against him in the amount of $65 million. Judge Martini imposed the sentence today in Newark federal court.

“Brazhnikov was responsible for nearly 2,000 illegal shipments of regulated, sensitive electronics components, many of which wound up in the hands of Russian military and security forces,” U.S. Attorney Fishman said. “He also admitted going to extraordinary lengths to conceal the nature and destination of the shipments, as well to hide the tens of millions of dollars in illegal proceeds generated by the scheme. The sentence imposed on him today reflects the seriousness of his crimes.”

Brazhnikov Jr. was arrested at his home on June 26, 2014, following a joint investigation by the FBI, the U.S. Department of Commerce (DOC), and the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). From January 2008 through June 2014, he was the owner, chief executive officer, and principal operator of four New Jersey microelectronics export companies, each of which were used in the various conspiracies uncovered by the investigation. Following his arrest, special agents seized $4,075,237 in proceeds related to the charged offenses, as well as real property and other assets valued at more than $600,000.

“Today's sentencing represents a collaborative effort among law enforcement agencies,” Jonathan Carson, Special Agent in Charge of the U.S. Department of Commerce, Bureau of Industry and Security, Office of Export Enforcement, New York Field Office, said. “I commend our colleagues at the FBI and Homeland Security Investigations for their efforts. The Office of Export Enforcement will continue to pursue violators of our export control laws by leveraging our unique authorities to protect national security.”

“HSI will continue to use all the resources at its disposal to prevent sensitive and restricted technology from being exported illegally,” Special Agent in Charge Terence S. Opiola, HSI, Newark, said. “HSI as the principal enforcer of export controls will continue to ensure that sensitive technology doesn’t fall into the wrong hands.”

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

Brazhnikov Jr. and his companies are part of a sophisticated procurement network that has surreptitiously acquired large quantities of license-controlled electronic components from American manufacturers and vendors and exported those items to Russia on behalf of Russian business entities that were authorized to supply them to the Ministry of Defense of the Russian Federation, the Federal Security Service of the Russian Federation (the FSB), and Russian entities involved in the design of nuclear warheads, weapons, and tactical platforms.

The defendant conspired with his father, Alexander Brazhnikov Sr., owner of a Moscow-based procurement firm whose agents helped initiate the purchase of electronics components from United States vendors and manufacturers on behalf of the conspirators’ clients in Russia.  Brazhnikov Jr. finalized the purchase and acquisition of the requested components from the various distributors, then repackaged and shipped them to Moscow. He routinely falsified the true identity of the end-user of the components and the true value of the components in order to avoid filling out required export control forms. Brazhnikov Jr. purposefully concealed the true destination of the parts that were exported by directing that the shipments be sent to various “shell” addresses in Russia – some of which have been identified as vacant storefronts and apartments – which were established and controlled by the Moscow-based network. All shipments initially directed to the shell addresses were redirected to a central warehouse controlled by the conspirators’ Moscow-based network.

The funds for the network’s illicit transactions were obtained from the various Russian purchases and initially deposited into one of the conspirators’ primary Russia-based accounts.  Disbursements for purchases were made from that primary Russian account through one or more foreign accounts held by shell corporations  in the British Virgin Islands, Latvia, Marshall Islands, Panama, Ireland, England, United Arab Emirates, and Belize, and ultimately into one of the defendant’s U.S.-based accounts. The network’s creation and use of dozens of bank accounts and shell companies abroad was intended to conceal the true sources of funds in Russia, as well as the identities of the various Russian defense contracting firms receiving U.S. electronics components.

In addition to the prison term and forfeiture, Judge Martini sentenced Brazhnikov to three years of supervised release and fined him $75,000.

U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark; the U.S. Department of Commerce, under the direction of Special Agent in Charge Carson, New York Field Office; and special agents of HSI, under the direction of Special Agent in Charge Opiola, with the investigation leading to today’s sentencing. He also thanked officers from the Union County Police Department, under the direction of Captain Chris Debbie; and officers of the Mountainside Police Department, under the direction of Police Chief Allan Attanasio, for their important contributions to the investigation. The U.S. Justice Department’s Office of International Affairs provided assistance with this case.

The government is represented by Assistant U.S. Attorneys Dennis C. Carletta of the U.S. Attorney’s Office National Security Unit, and Peter Gaeta of the office’s Asset Forfeiture and Money Laundering Unit in Newark.

Defense counsel: Jack Arseneault Esq., Chatham, New Jersey

NEWARK, N.J. – SRA International Inc. and Galaxy Scientific Corp. will pay more than $1.1 million to resolve civil claims relating to a scheme to bill for, and capture, unlawful profits on certain military contracts, U.S. Attorney Paul J. Fishman of the District of New Jersey announced today. 

In the civil settlement, SRA International Inc. (SRA), Galaxy Scientific Corp. (GSC), Galaxy Technology LLC (GTech), and Engineering Integrated Services L.L.C. (EIS), agreed to pay $1,105,087 plus accrued interest to the federal government to resolve allegations under the False Claims Act. The United States alleged that in 2004 and 2005 GSC used shell affiliates to improperly induce the Government to fund and award task orders, disguise actual costs, misrepresent what work was actually performed, and capture unlawful profit.

With respect to a task order involving the use of image and audio compression technology over low-bandwidth networks (Task Order 29 under the Communications-Electronics Life Cycle Management Command’s [CECOM’s] Rapid Response Contract No. DAAB07-03-D-B011), the United States alleged that GSC, a company whose majority shareholder and CEO was Dr. James Yoh, created a shell affiliate, GTech, a company wholly owned by Dr. Yoh, which it used to disguise actual costs, misrepresent what work was actually performed, and capture unlawful profit.  

In another task order involving communications in the Kuwait-Iraq theater of operations (Task Order Y601 of the same contract above), the United States alleged that GSC created another shell affiliate, EIS, again owned and controlled by Dr. Yoh, to improperly induce the government to fund and award the task order, disguise actual costs and capture unlawful profit. 

The civil settlement resolves a False Claims Act lawsuit filed under the FCA’s qui tam provisions in federal court in the District of New Jersey by John Carr, who worked as a contracting officer for GSC. As part of today’s resolution, Mr. Carr will receive approximately $250,000 from the civil settlement amount.

U.S. Attorney Fishman credited Resident Agent in Charge Richard Monticello of the Defense Criminal Investigative Service, New Jersey Resident Agency, and Investigative Auditor Brandy Saul of the Defense Contract Audit Agency, Mid-Atlantic Region, for the investigation leading to the settlement.

The government is represented by Assistant U.S. Attorney David E. Dauenheimer of the U.S. Attorney’s Office’s Civil Division in Newark and Trial Attorney Arnold Auerhan of the Civil Frauds Section in the U.S. Department of Justice.

The claims settled by this agreement are allegations only; there have been no admissions of liability.

Counsel for relator: Eric H. Jaso Esq., New York, and William J. Hardy Esq., Washington, D.C.

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

Juan Espindola, 58, of Montclair, New Jersey, pleaded guilty before U.S. District Judge Stanley R. Chesler in Newark federal court to an information charging him with violating the Federal Travel Act by accepting bribes to refer patient blood specimens to BLS.

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

Espindola admitted that between April 2011 and June 2012, he received bribes of approximately $1,500, largely on a monthly basis, from an individual working on behalf of BLS, referred to in the information as “Individual 1.”

Individual 1 falsely characterized the payments as “consulting fees” and made the payments via check. In reality, Espindola did not provide consultant services to Individual 1 or BLS – the consultant fees were merely a sham intended to conceal the bribe payments. In exchange, Espindola referred patient blood samples to BLS. Espindola’s referrals generated approximately $65,000 in lab business for BLS.

The Travel Act charge to which Espindola pleaded guilty carries a maximum potential penalty of five years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. His sentencing is scheduled for Oct. 12, 2016.

The investigation has thus far resulted in 41 guilty pleas – 27 of them from doctors – in connection with the bribery scheme, which its organizers have admitted involved millions of dollars in bribes and resulted in more than $100 million in payments to BLS from Medicare and various private insurance companies. It is believed to be the largest number of medical professionals ever prosecuted in a bribery case. The investigation has to date recovered more than $12 million through forfeiture.

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

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

U.S. Attorney Fishman reorganized the health care fraud practice at the New Jersey U.S. Attorney’s Office shortly after taking office, including creating a stand-alone Health Care and Government Fraud Unit to handle both criminal and civil investigations and prosecutions of health care fraud offenses. Since 2010, the office has recovered more than $1.29 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: Robert Stahl, Esq., Westfield, New Jersey

NEWARK, N.J. – A North Bergen, New Jersey, man was sentenced today to 300 months in prison for his role in a series of at least 27 burglaries and attempted burglaries across six states, U.S. Attorney Paul J. Fishman announced.

Daniel “Tokyo” Gatson, 44, was previously convicted of one count of conspiracy to transport stolen property in interstate commerce and 11 substantive counts of interstate transportation of stolen property. Gatson was 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 presented at trial:

Gatson, his cousin Anthony “T.J.” Hanks, 36, of Brooklyn, New York,  and numerous other conspirators, including four defendants who previously pleaded guilty and testified against Gatson and Hanks, took part in at least 27 burglaries and attempted burglaries in New Jersey, New York, Pennsylvania, Virginia, North Carolina, and Georgia, causing losses of over $3.5 million dollars, mainly in stolen jewelry and cash.

Typically, Gatson, Hanks 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, Gatson, Hanks and others 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. Gatson was apprehended on Oct. 11, 2013, while attempting to flush stolen jewelry down a hotel toilet.

In addition to the prison term, Judge Martini sentenced Gatson to three years of supervised release.

Hanks, who was convicted at trial of one count of conspiracy to transport stolen property in interstate commerce and three counts of interstate transportation of stolen property, is scheduled for sentencing on Sept. 20, 2016.

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 Acting Prosecutor Gurbir S. Grewal, with the investigation leading to today’s sentencing.

The government is represented by Assistant U.S. Attorney Josh Hafetz of the Organized Crime/Gangs Unit in Newark and Special Assistant U.S. Attorney Thomas S. Kearney of the Bergen County Prosecutor’s Office.

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

A Paramus, New Jersey, man pleaded guilty today to helping to funnel $80,000 in campaign contributions from a foreign source to the joint fundraising committee of the President of the United States during the 2012 presidential election, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Paul J. Fishman of the District of New Jersey.

Bilal Shehu, 48, pleaded guilty before U.S. District Judge Madeline Cox Arleo of the District of New Jersey to an information charging him with knowingly and willfully making foreign contributions and donations in connection with the 2012 presidential election and to a fundraising and political campaign committee of the president, aggregating $25,000 or more during a calendar year.  Sentencing has been scheduled for Oct. 5, 2016.

Pursuant to his plea agreement, Shehu, a U.S. citizen living in New Jersey, admitted that in September 2012, he received approximately $80,000 from a foreign source and provided it to a joint fundraising committee—including the authorized campaign committee of the president—in an effort to disguise the true origin of the money and so that a foreign national could attend a campaign event on Oct. 8, 2012, in San Francisco.  Federal law prohibits foreign nationals from making contributions to federal candidates or fundraising committees.  In late September 2012, Shehu received an $80,000 wire transfer into his New Jersey-based bank account from a foreign bank account, knowing that he was to provide it to the joint fundraising committee, he admitted.  Shehu admitted that in early October 2012, he flew to San Francisco and attempted to gain entry into the San Francisco fundraising event with the foreign national, who was denied entry but was allowed to be photographed with the president. 

No one on the joint fundraising committee has been accused of any wrongdoing and the committee has fully cooperated in the investigation leading to today’s guilty plea. 

The FBI investigated the case.  Trial Attorneys Charles Walsh and Peter Halpern of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Mark J. McCarren of the District of New Jersey’s Special Prosecutions Division are prosecuting the case. 

TRENTON, N.J. – A Long Branch, New Jersey, man today admitted using his computer to possess and distribute images of child sexual abuse via a peer-to-peer file-sharing network, U.S. Attorney Paul J. Fishman announced.

Donald Haring, 61, pleaded guilty before U.S. District Judge Freda L. Wolfson in Trenton federal court to an information charging him with possession and distribution of child pornography. 

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

Haring admitted that he knowingly used a computer from his home to share images and videos of child sexual abuse with other members of a publicly-available, peer-to-peer file-sharing network. Haring also admitted to possessing at least three videos and 600 images of child sexual abuse on his computer and other electronic devices.

Haring faces a maximum potential penalty of 20 years in prison, a minimum penalty of five years in prison, a fine of $250,000, and up to a lifetime of supervised release. Sentencing is scheduled for Oct. 7, 2016.

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

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

Defense counsel:  Charles M. Moriarty, Esq.

NEWARK, N.J. – A former director of Samsung America Inc.’s Korea Export Department was sentenced today to 75 months in prison for his role in a scheme to embezzle more than $1 million from the company from 2002 through 2007, U.S. Attorney Paul J. Fishman announced.

John Y. Lee, a/k/a “Yong Kook Lee,” 53, of West New York, New Jersey, previously pleaded guilty before U.S. District Judge Susan D. Wigenton to an information charging him with one count of wire fraud and one count of subscribing to false individual income tax returns. Judge Wigenton imposed the sentence today in Newark federal court.

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

During his plea hearing, Lee admitted his role in an elaborate scheme to embezzle funds from Samsung America, a Ridgefield Park-based global trading and investment company and American subsidiary of the Korean conglomerate Samsung Corp.

Lee admitted that in September 2000, he created a fictitious entity that he called the Engelhard Supple (sic) Co. to make it appear as though that entity was actually Engelhard Corp., a provider of metal refining services based in Iselin, New Jersey. Lee admitted creating numerous false financial documents, including invoices, purchase orders and payment applications that made it appear that Samsung Corning Precision Glass Ltd., a joint venture involving the Samsung Corporation and Corning Inc., had ordered services from Engelhard. In fact, no real services had been ordered or provided. Lee simply submitted these fraudulent documents to Samsung America to induce Samsung America to wire money directly into a bank account Lee controlled.

In an effort to conceal his fraudulent conduct, Lee sent false documents to Samsung America’s accounting department. In his plea agreement, Lee admitted that the loss to the company was between $1 million and $2.5 million. He also acknowledged that he signed and filed a 2006 Individual Income Tax Return that failed to include $339,138 he had embezzled from Samsung America in 2006.

In addition to the prison term, Judge Wigenton sentenced Lee to three years of supervised release and ordered him to pay to Samsung America Inc. restitution of $1,693,271.

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 investigators from the N.J. Division of Criminal Justice, under the direction of Acting N.J. Attorney General Christopher S. Porrino, with the investigation leading to today’s sentencing.

The government is represented by Special Assistant U.S. Attorney Stephanie Raney of the U.S. Attorney’s Office’s General Crimes Unit.

Defense Counsel: Paul Brickfield Esq., River Edge, New Jersey

NEWARK, N.J. – A former pharmaceutical employee today admitted accepting thousands of dollars in exchange for obtaining and filling her own medically unnecessary prescriptions for compounded medication and creams, causing losses of $250,971, U.S. Attorney Paul J. Fishman announced.

Stephanie Naar, 27, of St. Louis, Missouri, pleaded guilty before U.S. District Judge John Michael Vazquez in Newark federal court to an information charging her with conspiracy to commit health care fraud.

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

Naar, a former employee of a New Jersey pharmaceutical company, admitted that in February 2015, she was recruited by an individual identified in the information as “co-conspirator #1 (CC-1),” a former employee of the same pharmaceutical company, to assist a marketing business identified in the information as “Company A.”  Company A was paid by various compounding pharmacies for referring beneficiaries whose insurance plans would pay for compounded medication, such as pain creams, scar creams and vitamins.

 CC-1 offered Naar “commission” payments in return for compounded medication, creams and vitamins that Naar obtained at specific specialty pharmacies and were billed to her employer’s prescription drug benefit plan. In furtherance of the scheme, Naar received a preprinted prescription form with compounded medications and creams from CC-1, took the forms to her doctor, and asked her doctor to prescribe those medications.

Afterwards, the compounded prescription products were sent to Naar from a pharmacy outside her home state. On March 26, 2015, Naar received a $3,565 check from Company A, which was a percentage of the amount paid by Naar’s employer to the compounding pharmacy for filling the prescription.

During the spring, summer and fall of 2015, Naar refilled her compounded self- prescriptions on forms provided by CC-1 and Company A at certain specific compounding pharmacies selected by Company A, and in return, received commission checks and wire transfers from Company A. Altogether she received $22,445 for her role in the conspiracy.

Naar also admitted that during the Fall of 2015, CC-1 directed her to a “telemedicine doctor” referred to in the information as “co-conspirator #2 (CC-2),” a doctor with whom Naar had no preexisting relationship, for the purpose of obtaining medically unnecessary compounded pain cream so that Company A would provide her continued monetary reimbursements. CC-2 was located in New York and was not licensed in Missouri. 

Naar faces a statutory maximum of 10 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. Sentencing is scheduled for Oct 4, 2016.

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

The government is represented by Assistant U.S. Attorney Melissa L. Jampol of the U.S. Attorney’s Office Health Care and Government Fraud Unit in Newark.

U.S. Attorney Paul J. Fishman reorganized the health care fraud practice at the New Jersey U.S. Attorney’s Office shortly after taking office, including creating a stand-alone Health Care and Government Fraud Unit to handle both criminal and civil investigations and prosecutions of health care fraud offenses. Since 2010, the office has recovered more than $1.29 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: Thomas J. Matthes, St. Louis

NEWARK, N.J. – A Bergen County, New Jersey, man today admitted helping funnel $80,000 in campaign contributions from a foreign source to the joint fundraising committee of the President of the United States during the 2012 presidential election, Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Paul J. Fishman of the District of New Jersey announced.

Bilal Shehu, 48, of Paramus, New Jersey, pleaded guilty before U.S. District Judge Madeline Cox Arleo in Newark federal court to an information charging him with knowingly and willfully making foreign contributions and donations in connection with the 2012 presidential election and to a fundraising and political campaign committee of the president, aggregating $25,000 or more during a calendar year.

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

In September 2012, Shehu, a U.S. citizen living in New Jersey, received approximately $80,000 from a foreign source and provided it to a joint fundraising committee – including the authorized campaign committee of the president – to disguise the true origin of the money and so that a foreign national could attend a campaign event on Oct. 8, 2012, in San Francisco. Federal law prohibits foreign nationals from making contributions to federal candidates or fundraising committees and, in order to attend the event, a foreign national needed to be accompanied by a U.S. citizen. Shehu admitted that he received an $80,000 wire transfer into his New Jersey-based bank account from a foreign bank account in late September 2012, knowing that he was to provide it to the joint fundraising committee. In early October 2012, Shehu flew to San Francisco and attempted to gain entry into the San Francisco fundraising event with the foreign national, who was denied entry but was allowed to be photographed with the President. 

No one on the joint fundraising committee has been accused of any wrongdoing and the committee has fully cooperated in the investigation leading to today’s guilty plea.

The charge to which Shehu pleaded guilty carries a maximum potential penalty of five years and a $250,000 fine. Sentencing is scheduled for Oct. 5, 2016. 

The FBI investigated the case. The government is represented by Assistant U.S. Attorney Mark J. McCarren of the District of New Jersey’s Special Prosecutions Division Trial Attorneys Charles Walsh and Peter Halpern of the Criminal Division’s Public Integrity Section.

Defense counsel: Alan M. Abramson Esq., New York

Company Ordered to Forfeit All of its Assets

NEWARK, N.J. – Biodiagnostic Laboratory Services LLC (BLS), the Parsippany, New Jersey clinical lab at the center of a long-running and elaborate test referral scheme operated by its president and numerous associates, pleaded guilty and was sentenced today in federal court, U.S. Attorney Paul J. Fishman announced.

BLS pleaded guilty before U.S. District Judge Stanley R. Chesler in Newark federal court to an information charging it with one count of conspiracy to violate the Anti-Kickback Statute and the Federal Travel Act and one count of conspiracy to commit money laundering. Following the plea, BLS was sentenced by Judge Chesler. The company, which is no longer operational, must forfeit all of its assets.

The investigation has resulted in 40 guilty pleas – 26 of them from doctors – in connection with the bribery scheme, which its organizers have admitted involved millions of dollars in bribes and resulted in more than $100 million in payments to BLS from Medicare and various private insurance companies. It is believed to be the largest number of medical professionals ever prosecuted in a bribery case. The investigation has to date recovered more than $12 million through forfeiture.

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

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

U.S. Attorney Fishman reorganized the health care fraud practice at the New Jersey U.S. Attorney’s Office shortly after taking office, including creating a stand-alone Health Care and Government Fraud Unit to handle both criminal and civil investigations and prosecutions of health care fraud offenses. Since 2010, the office has recovered more than $1.29 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: Steven Backfisch Esq., Westfield, New Jersey

NEWARK, N.J. – A Newark man was sentenced today to 564 months in prison for his role in three gunpoint carjackings and an attempted carjacking within a 10-day period, U.S. Attorney Paul J. Fishman announced.

Jamie Manning, 31, was previously convicted on all nine counts of a superseding indictment: one count of conspiracy to commit theft of a motor vehicle by force, violence and intimidation; three counts of carjacking; one count of attempted carjacking; and four counts of using a firearm in furtherance of a crime of violence. Manning was convicted following a six-day trial before U.S. District Judge William H. Walls, who imposed the sentence today in Newark federal court.

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

On Dec. 20, 2012, Manning and another conspirator approached the owner of 2004 Honda Accord. Manning pressed a firearm into the victim’s side and demanded that the victim give him keys to the car. Manning and the other conspirator took the victim’s keys and purse, demanded the PIN to the victim’s debit card and attempted to push the victim into the Accord’s trunk. Manning and the other conspirator got into the Accord and fled.

During the early morning hours of Dec. 26, 2012, Manning and Corey Thermitus, 24, of Newark, approached two individuals entering a parked, 2002, four-door Nissan Altima on a street in Newark. Manning pointed a firearm at one of the victims and both Manning and Thermitus ordered the victims to get out of the car. After robbing and threatening the victims, Manning and Thermitus fled the area in the carjacked vehicle.

On Dec. 28, 2012, Thermitus approached an individual sitting in a 2011, four-door Honda Accord that was parked in the driveway of a home in Newark. Thermitus pointed a firearm at the victim and ordered the victim out of the car. After threatening to shoot the victim, Thermitus, Manning and another man fled the area in the victim’s car.

Later that night, Thermitus, Manning and a third man drove in the carjacked Honda Accord to a residential area in Newark. Thermitus and Manning approached two individuals, one of whom was a young child, who were sitting in a parked, 2006, four-door Nissan Pathfinder in the driveway of a residence. Thermitus pointed a gun at the driver of the vehicle while Manning approached the rear passenger side of the vehicle, but the driver managed to escape in the car. As the assailants fled in the Honda Accord, Thermitus fired a gun in the direction of an individual who had come outside of a residence to investigate.

In addition to the prison term Judge Walls sentenced Manning to five years of supervised release.

Thermitus previously pleaded guilty to an information charging him with three counts of theft of a motor vehicle by force, violence and intimidation; one count of attempted theft of a motor vehicle by force, violence and intimidation; and one count of discharging a firearm in furtherance of a violent crime. He was sentenced to 255 months in prison on Dec. 2, 2015.

U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark; the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Carolyn A. Murray; and the Newark Police Department, under the direction of Director Anthony Ambrose, with the investigation leading to today’s verdict.

The government is represented by Assistant U.S. Attorney Dara Aquila Govan of the Organized Crime/Gangs Unit in Newark and Senior Litigation Counsel Vincent Grady O’Malley of the Criminal Division in Newark.

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

NEWARK, N.J. – A disbarred New York attorney was sentenced today to 43 months in prison for his involvement in a ticket resale fraud scheme and a real estate investment fraud conspiracy that bilked multiple victims out of more than $3 million, U.S. Attorney Paul J. Fishman announced.

Pasquale Stiso, a/k/a “Pat Stiso,” 55, of New Rochelle, New York, was previously 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. He was convicted following a seven-day 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 evidence at trial:

Since 2011, co-defendant Paul Mancuso, 49, of Glen Rock, New Jersey, held himself out as an investor, broker, and developer of various purported investments. Mancuso obtained from his victims substantial investments for various projects that, in fact, either did not exist at all or in which Mancuso had no actual involvement. Stiso held himself out as an individual who was working with Mancuso on various purported projects. Many of the victims of Stiso and Mancuso’s schemes lost all or substantially all of the money they invested with Mancuso and Stiso. Many even lost all or most of their life savings.

Stiso and Mancuso falsely represented to some victims that they would purchase event tickets, such as tickets to New York Giants football games, New York Yankees playoff games, the Super Bowl, and other sporting events and concerts, at a lower or wholesale rate, and then resell them to members of the public at an inflated rate, creating profits for their investors. In reality, Stiso and Mancuso did not buy tickets with their victims’ money.

In one of the real estate schemes, Stiso and Mancuso falsely represented to victims that they were investors in a real estate development project in Valley Cottage, New York, and that investor money would be used to purchase an interest in real property. The real property interest would then be resold at an increased price, creating profits for their investors.

In reality, Stiso and Mancuso did not invest in any such real estate project with their victims’ money. Instead, they engaged in monetary transactions designed to funnel, and in many instances launder, the victims’ investments for their own benefit, including paying illegal gambling debts and money owed to loan sharks. Stiso and Mancuso were heavily involved in illegal gambling pursuits and both owed substantial sums of money to loan sharks and one of their bookmakers.

In addition to the prison term, Judge Martini sentenced Stiso to three years of supervised release and ordered him to pay restitution of $460,000.

Mancuso previously pleaded guilty in federal court to conspiring with Stiso to commit wire fraud and awaits sentencing.

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 of the U.S. Attorney’s Office with the investigation leading to today’s sentencing.

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

Defense counsel:    Henry E. Klingeman Esq., Newark

                              Ernesto Cerimele Esq., Newark

NEWARK, N.J. – A Warwick, New York, man was sentenced today to life in prison for coercing a minor to engage in sexually explicit conduct and traveling from New York to Passaic County, New Jersey, to have sexual intercourse with another minor, U.S. Attorney Paul J. Fishman announced.

Clifford W. Wares, 43, was previously convicted of all six counts of an indictment charging him with one count of production of child pornography, one count of interstate travel to engage in illicit sexual conduct, two counts of online enticement of a minor to engage in criminal sexual conduct, and two counts of interstate extortionate threat. Wares was convicted following a six-day trial before U.S. District Judge Esther Salas, who imposed the sentence today in Newark federal court. 

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

From June 2011 through October 2011, Wares used email, telephone and Facebook to communicate with a 13-year-old girl in Passaic County (“Victim 1”). Wares used a fake Facebook account to pretend to be another minor who was known to Victim 1 and introduce himself as someone with whom Victim 1 should communicate. Afterwards, Wares sent Victim 1 pornographic images and engaged in sexually explicit communications, ultimately asking that she send him images and videos of herself nude or engaging in sex acts, which she did. On occasions when she did not comply, Wares threatened to distribute nude images of Victim 1 to her parents and friends.

In June 2011, Wares met a 14-year-old girl residing in Passaic County (“Victim 2”) via an online social network. From June 2011 through August 2011, Wares regularly engaged in sexually explicit communications with Victim 2, sent her pornographic images and told her that he was interested in “hanging out” with her. Wares then drove from his home in Warwick, New York, to Passaic County where he picked her up in his vehicle. Wares engaged in sex acts with Victim 2 in a nearby park. After a second encounter, Wares threatened to harm Victim 2’s reputation and property when she refused to meet him again.

Wares was ultimately apprehended after a search for him was conducted via land and helicopter in an Orange County, New York park. Among his possessions upon his arrest were a roll of duct tape, a pair of handcuffs, a knife, and a handwritten list of the names of other minors who were known to Victims 1 and 2.

At today’s sentencing hearing, Judge Salas found that, subsequent to his arrest, Wares also attempted to intimidate his victims into refusing to testify against him by sending anonymous letters threatening their own lives and those of their families. Judge Salas found that this conduct (which was unsuccessful) constituted obstruction of justice by Wares, leading to a two-level increase in Wares’ offense level under the advisory U.S. Sentencing Guidelines, and further justified the life sentence imposed.

U.S. Attorney Fishman credited Special Agents with the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, the New Jersey Regional Computer Forensics Laboratory, the Passaic County Prosecutor’s Office, and the New York State Police with the investigation leading to today’s sentence.

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

Defense counsel: Thomas Ambrosio Esq., Lyndhurst, New Jersey.            

NEWARK, N.J. – A resident of the Philippines has been charged in connection with a large-scale and sophisticated identity theft scheme targeting high-profile victims, U.S. Attorney Paul J. Fishman announced today.

Peter Locsin, 35, of Talisay City, Philippines, was indicted by a federal grand jury on one count of bank fraud conspiracy and two counts of aggravated identity theft. The indictment was returned May 10, 2016, and unsealed today. The case is assigned to U.S. District Judge John M. Vasquez.

According to documents filed in this case:

Locsin allegedly conspired with others to defraud banks and credit card companies by compromising accounts held at those institutions by certain individuals, usually well-known or celebrity account-holders. Locsin and others first compromised personal identifying information (PII) – including names, dates of birth, Social Security numbers, address history, and work history. Locsin and his conspirators fraudulently accessed the individual accounts through websites or other online means, as well as through telephone calls.

Locsin and his conspirators used those accounts to make, or attempt to make, wire transfers of funds, order merchandise, order emergency replacement cards, add supplemental cardholders to accounts, or change addresses related to those accounts – none of which was authorized by the account-holders. 

The count of bank fraud conspiracy carries a maximum potential penalty of 30 years in prison, and the counts of aggravated identity theft each carry a maximum potential penalty of two 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, with the investigation leading to the indictment.

The government is represented by Assistant U.S. Attorney Zach Intrater, Deputy Chief of the of the U.S. Attorney’s Office Economic Crimes Unit in Newark.

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

CAMDEN, N.J. – A doctor with offices in Toms River, New Jersey, today admitted 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, 54, of Toms River, pleaded guilty before U.S. District Judge Joseph H. Rodriguez in Camden federal court to Count 1 of an indictment charging him with conspiracy to accept cash bribes.

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 Roberson, 46, 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. 

Destasio faces a statutory maximum sentence of five years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. Sentencing is scheduled for Sept. 26, 2016.

Gilman and Robberson have both pleaded guilty to an information charging them with conspiracy to bribe a physician and await sentencing.

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

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

CAMDEN, N.J. – Two New Jersey men were each sentenced to more than 16 years in prison for their roles in a large-scale conspiracy to ship stolen luxury cars to Hong Kong and elsewhere, U.S. Attorney Paul J. Fishman announced.

Andrew Clarke, 43 of Irvington, New Jersey, and Llewellyn Clarke, 42 of North Plainfield, New Jersey, were sentenced to 300 and 195 months in prison, respectively. Both were previously convicted on all four counts of a superseding indictment charging them each with one count of conspiracy to transport stolen motor vehicles and three counts of transportation of stolen motor vehicles in interstate and foreign commerce. They were convicted following a three-week trial before U.S. District Judge Robert B. Kugler, who imposed the sentences today in Camden federal court.

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

The stolen car exportation ring was investigated by a multi-agency task force led by Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). The investigation revealed that the Clarkes were purchasing stolen luxury cars from thieves operating in northern New Jersey and New York.

The Clarke brothers then recruited other conspirators to “re-tag” those cars, or have fraudulent vehicle identification numbers placed on the cars to mask the fact that they were stolen, and then had false title documents produced for those cars in New Jersey and Georgia. After the fake documents were created, the Clarkes shipped several of those stolen cars, valued between $1.9 and $2.1 million, from New Jersey to Hong Kong, while other cars were shipped to Georgia, Maryland and elsewhere. Once overseas or out-of-state, the stolen cars were then re-sold, some to unsuspecting buyers who later learned that their vehicles were in fact stolen.

In addition to the prison terms, Judge Kugler sentenced both defendants to three years of supervised release.

 U.S. Attorney Fishman credited special agents of ICE HSI, under the leadership of Executive Associate Director Peter Edge and Acting Special Agent in Charge Terence S. Opiola, and the N.J. State Police, under the direction of Superintendent Col. Rick Fuentes, for the investigation leading to today’s sentences. He also thanked U.S. Customs and Border Protection; the Waterfront Commission of New York Harbor; Essex County Prosecutor Carolyn Murray, Middlesex County Prosecutor Andrew C. Carey, Hudson County Prosecutor Esther Suarez, and Union County Acting Prosecutor Grace H. Park, the Essex and Hudson County Sheriff’s Departments, the Newark Police Department, the U.S. Coast Guard Investigative Service, the Port Authority of New York and New Jersey, the New Jersey Motor Vehicle Commission, the Georgia Department of Revenue, and the Maryland State Police for their roles.

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

Defense counsel:

Andrew Clarke: Brian O’Malley Esq., Haddon Heights, New Jersey

Llewellyn Clarke: Paul Sarmousakis Esq., Avalon, New Jersey

NEWARK, N.J. – A Newark man today admitted 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, pleaded guilty before U.S. District Judge Jose L. Linares in Newark federal court 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.

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

Under the terms of today’s plea agreement – which has been accepted by the court – Vaughn will be sentenced to 65 months in prison and up to five years of supervised release. Sentencing is scheduled for 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, 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 Bergenfield, New Jersey, woman today admitted her role in a conspiracy to traffic approximately two kilograms of cocaine from Puerto Rico to New Jersey, U.S. Attorney Paul J. Fishman announced.

Sasha Melendez, 37, pleaded guilty before U.S. District Judge Claire C. Cecchi in Newark federal court to an information charging her with one count of conspiring to distribute cocaine. 

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

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

The conspiracy charge to which Melendez pleaded guilty today carries a maximum potential penalty of 20 years in prison and $1 million fine. Sentencing is scheduled for Oct. 4, 2016.

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

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

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

Defense Counsel: Stacey Van Malden, Esq.

NEWARK, N.J. – A Newton, New Jersey, man today admitted that he planned the kidnapping and murder of a woman he met online, U.S. Attorney Paul J. Fishman announced.

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

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

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

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

The attempted kidnapping charge carries a potential penalty of 20 years in prison and a $250,000 fine. The murder-for-hire charge carries a potential penalty of 10 years in prison and a $250,000 fine. Sentencing is scheduled for Sept. 21, 2016.

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. He also thanked members of the Passaic County Prosecutor’s Office, the New Jersey State Police, the Newton Police Department, the Paramus Police Department, the Paterson Police Department, the Roxbury Police Department, and the Wayne Police Department for their assistance.

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

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

TRENTON, N.J. – An Ocean County, New Jersey, man today admitted robbing eight banks in New Jersey and New York, U.S. Attorney Paul J. Fishman announced.

Steven Wisnowski, 32, of Barnegat, New Jersey, pleaded guilty before U.S. District Judge Peter J. Sheridan in Trenton federal court to an eight-count superseding information charging him with the bank robberies.

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

Wisnowski admitted that between Oct. 30, 2013 and Jan. 7, 2014, he went on a crime spree and robbed eight banks, seven of which were in New Jersey, and one of which was in New York:

Bank Name

Location

Date

PNC Bank

Edison

Oct. 30, 2013

TD Bank

Brick

Nov. 7, 2013

Santander Bank

Brick

Nov. 15, 2013

Ridgewood Savings Bank

Bayside (NY)

Nov. 22, 2013

Columbia Bank

Edison

Nov. 27, 2013

TD Bank

Toms River

Dec. 2, 2013

PNC Bank

Aberdeen

Dec. 9, 2013

Fulton Bank

Edison

Jan. 7, 2014

Wisnowski used a similar procedure for each robbery: he entered the banks wearing hats, hooded jackets, and wigs to conceal his identity, approached the bank tellers, and demanded money.  In some instances, Wisnowski made the tellers believe he was armed and also threatened some tellers with violence. 

During the Columbia Bank robbery, Wisnowski appeared to point something at the teller from under his clothing, as if he had a gun. Wisnowski then demanded money, stating: “Give me all your hundreds.” As the teller gathered the money, Wisnowski counted backwards from 10.  He then fled with the money.

During the Fulton Bank robbery, Wisnowski gave a teller a manila envelope and stated, “Give me what I want and nobody gets hurt. I want large bills.”  He then pulled up his sweatshirt as if he had a gun.  The teller gathered the money and placed it in the envelope, after which Wisnowski fled.

Law enforcement tracked Wisnowski’s vehicle to the scene of the Fulton Bank robbery. Officers approached Wisnowski as he exited the bank and ordered him to the ground at gunpoint. Wisnowski threw the envelope filled with cash and fled. Law enforcement officers pursued Wisnowski and apprehended him moments later.

The bank robbery charges to which Wisnowski pleaded guilty each carry a maximum penalty of 20 years in prison and a fine of $250,000.  Sentencing is scheduled for Oct. 11, 2016.

U.S. Attorney Fishman praised special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher, with the investigation leading to today’s guilty plea.  He also thanked the Edison, Aberdeen, Brick, Toms River, and New York City police departments, and the Middlesex, Ocean, and Monmouth County prosecutors’ offices for their contributions to the case.

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

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

NEWARK, N.J. – A Passaic County, New Jersey, man was sentenced today to 60 months in prison for receiving sexually explicit images of children from his computer, U.S. Attorney Paul J. Fishman announced. 

Thomas Bachalis, 32, of West Milford Township, New Jersey, pleaded guilty on March 14, 2016, before U.S. District Judge Ester Salas to an information charging him with receipt of child pornography. Judge Salas imposed the sentence today in Newark federal court. 

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

Bachalis previously admitted that in August 2013 he was a member of a publicly available peer-to-peer file sharing network on the internet, which he used to receive images of child sexual abuse.  

In addition to the prison term, Judge Salas sentenced Bachalis 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; the Passaic County Sheriff’s Office, under the direction of Sheriff Richard H. Berdnik; and the West Milford Police Department, under the direction of Chief Timothy Storbeck, with the investigation leading to today’s sentencing. 

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

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

Yoel Oberlander, 35, was charged by criminal complaint with one count of abusive sexual contact on an airplane. Oberlander had his initial appearance this afternoon before U.S. Magistrate Judge Joseph A. Dickson in Newark federal court and was detained.

According to the complaint:

While on a May 29, 2016 El Al flight from Tel Aviv to Newark, Oberlander was seated next to a female passenger and her mother. During the flight, Oberlander repeatedly placed his hand on the female passenger’s thigh and breast without her consent.

Oberlander is a registered sex offender. He was previously convicted in 2002 in New York for sexual abuse in the second degree, arising from his sexual assault of an eleven-year-old girl.

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

U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, and the Port Authority of New York-New Jersey, with the investigation leading to today’s arrest.

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

Defense counsel: David Goldstein Esq., Montvale, New Jersey

NEWARK, N.J. – An Essex County, New Jersey, man was sentenced today to 240 months in prison for his role in an armed carjacking spree between June 6, 2012, and June 22, 2012 U.S. Attorney Paul J. Fishman announced. 

Jahleel McLendon, 22, of Newark, previously pleaded guilty before U.S. District Judge Kevin McNulty to an information charging him with five counts of theft of a motor vehicle by force, violence, and intimidation, and one count of brandishing a firearm in furtherance of a crime of violence. Judge McNulty imposed the sentenced today in Newark federal court. 

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

On June 6, 2012, McLendon approached a man sitting in the driver’s seat of a parked Chrysler 300 and ordered him out of the car at gunpoint. Several hours later, McLendon was still driving the Chrysler 300 when Newark police officers attempted to pull him over. McLendon led police on a car chase, eventually losing control of the vehicle and crashing into two parked cars and two utility poles. He eluded capture that day, and three days later, McLendon and an accomplice carjacked an Acura TL at gunpoint while the victim was loading the trunk of the car.

On June 15, 2012, McLendon and an accomplice carjacked a Chevrolet Trailblazer at gunpoint, and approximately twenty minutes later, used that Trailblazer to carjack a BMW 325 at a gas station in Newark. On June 22, 2012, McLendon carjacked a Chevrolet Impala at gunpoint.  When the driver attempted to resist, McLendon threatened to shoot her. Less than two hours later, McLendon was still driving the Impala when Newark police officers attempted to pull him over. McLendon again led the police on a car chase before he drove into an empty parking lot and fled on foot. Newark Police officers quickly caught McLendon and arrested him. He was found to be possession of a loaded handgun and 46 glassine bags of heroin. 

In addition to the prison term, Judge McNulty also sentenced McLendon to five years of supervised release.

U.S. Attorney Fishman credited the Newark Police Department, under the direction of Police Director Anthony Ambrose; special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher; detectives with the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Carolyn A. Murray; and investigators in the U.S. Attorney’s Office with the investigation leading to today’s sentencing.

The government is represented by Assistant U.S. Attorney Cari Fais of the Newark office.

Defense counsel: Carol Gillen Esq., Assistant Federal Public Defender, Newark

NEWARK, N.J. – Five members of the international street gang “Mara Salvatrucha” (also known as MS-13) – including two top-ranking members who were directing gang operations from California prison cells – today admitted their roles in crimes including racketeering, conspiracy to commit murder, extortion and drug trafficking, U.S. Attorney Paul J. Fishman announced.

The defendants include Amilcar Romero, 47, a/k/a “Chichi,” and Joel Antonio Cortez, 41, a/k/a “Pee Wee,” both currently serving state prison sentences in California, and both of whom served as chief deputies to the leader of Mara Salvatrucha’s “national program.” They pleaded guilty today before U.S. District Judge Stanley Chesler in Newark federal court.

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

The “national program,” also known as the “unification of the barrio,” sought to bring all of Mara Salvatrucha’s local sets, or “cliques,” in the United States under a single, cohesive leadership structure. The goal of the national program was to increase the nationwide collection of extortion proceeds, known as “rent,” and to use these rent-collection networks to establish new drug distribution channels from California to the East Coast.  Mara Salvatrucha leaders allegedly struck a deal with the Mexican Mafia, a California prison gang, and certain Mexican drug cartels, including La Familia Michoacana, to supply methamphetamine and other drugs at cheap prices to gang members on the East Coast, including in New Jersey.

Three members of the “Hudson Locotes Salvatruchas”—a local branch, or “clique,” based in Hudson County, New Jersey, pleaded guilty to their roles in conspiring to murder an MS-13 member that had violated the gang’s rules and the member’s brother, who was alleged to belong to a rival gang.  Luis Lopez-Guzman, 26, a/k/a “Nino, of Union City, New Jersey;” Hector Carranza-Solis, 32, a/k/a “Blackie;” of West New York, New Jersey, and Rudy Gutierrez, 24, a/k/a “Chiqui,” of Union City, admitted that they participated in telephone calls and other discussions with the leadership of the gang in the United States and El Salvador to seek permission to kill the rival gang members. Law enforcement learned of the murder plot during the course of this investigation and arrested the defendants before it could be completed.

Romero and Cortez served as the top deputies to Jose Juan Rodriguez-Juarez. Rodriguez-Juarez was a made member, or “carnale,” in the Mexican Mafia, and he leveraged his status within the powerful prison gang to assert control over all Mara Salvatrucha activities in the United States. Within Mara Salvatrucha, Rodriguez-Juarez was known by his gang moniker, “Dreamer,” but when he assumed control of the national program, he became known as “Sacerdote,” Spanish for “the priest.”

By autumn 2013, Rodriguez-Juarez had assigned Romero to serve as the primary point-of-contact between the leadership of Mara Salvatrucha in the United States and El Salvador, while Cortez assumed responsibility for recruiting Mara Salvatrucha cliques on the East Coast to join the national program. Both are also alleged to have ordered violence on the East Coast, including Cortez’s authorization of the November 2013 murder plot in Hudson County, and Romero’s order to east coast-based gang members to collect money on behalf of the gang by force and violence. Romero and Cortez collaborated with MS-13 gang leaders in New Jersey, Virginia, Maryland, and elsewhere to establish a distribution chain for cheap Mexican cartel drugs, including heroin and crystal methamphetamine. Part of the profit from that drug distribution chain would then be funneled back to the gang’s leadership in California to further promote the gang’s criminal activity.

All five defendants who pleaded guilty today will be sentenced Sept. 14, 2016. (See chart below.)

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

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

Defense counsel:

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

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

Carranza-Solis: Laurie M. Fierro Esq., Kinnelon, New Jersey

Gutierrez: Jerome A. Ballarotto Esq., Trenton, New Jersey

Lopez-Guzman: A. Paul Condon Esq., Jersey City, New Jersey

 

Maximum Penalties

Count

Charge

Defendants

Maximum Penalty

1.  

Racketeering Conspiracy

Romero

Cortez

Gutierrez

Life in prison

(Romero, Cruz)

20 years in prison

(Gutierrez)

4

Conspiracy to Commit Murder in Aid of Racketeering

Gutierrez

Carranza-Solis

Lopez-Guzman

10 years in prison

 

CAMDEN, N.J. - A Burlington County, New Jersey, man was indicted by a federal grand jury today for allegedly selling firearms to criminals in South Jersey, U.S. Attorney Paul J. Fishman announced.

Fr’Neil Hickson, 36, a/k/a “Philly,” of Willingboro, New Jersey, was charged by indictment with one count of dealing in firearms without a federal firearms license, one count of conspiracy to deal in firearms and transport firearms interstate for sale without a license, and one count of possession of firearms by a convicted felon.

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

Hickson allegedly conspired with Joshua Jackson, 35, a/k/a “Apple, a/k/a “Trent,” of Willingboro and Columbus, Ohio; and Terrance Laboo, 43, a/k/a “Terrance Reeves,” a/k/a “Mus,” of Oaklyn, New Jersey, to deal in firearms without a federal firearms license.

Firearms were bought through straw purchasers and at gun shows in Ohio and transported into New Jersey by Jackson and Antonio Berry, of Columbus, Ohio, either in a vehicle rented by Jackson, or by Berry, who took Greyhound buses from Columbus, Ohio, to Philadelphia, Pennsylvania, Camden and Mount Laurel, New Jersey. Berry allegedly carried duffel bags that contained multiple firearms, which were sold and delivered to Hickson and Laboo. Hickson and Laboo sold the guns to drug dealers and other felons in southern New Jersey, including in Camden and Willingboro. Hickson also obtained guns from other sources in Virginia and Pennsylvania and transported them back to New Jersey for unlicensed sales to his customers.

Jackson and Laboo previously pleaded guilty before U.S. District Judge Robert B. Kugler to dealing in firearms without a license, conspiracy to deal in firearms without a license, and possession of firearms by a convicted felon. Both await sentencing in July 2016.

The counts of conspiracy to deal in firearms without a license and dealing firearms without a license each carry a maximum potential penalty of five years in prison and a $250,000 fine. The count of possession of firearms by a convicted felon carries a maximum penalty of 10 years in prison and a maximum fine of $250,000.           

U.S. Attorney Fishman credited special agents of the ATF, under the direction of Special Agent in Charge George P. Belsky Jr., Newark Field Division; and Essam Rabadi, Special Agent in Charge of ATF’s Philadelphia Field Division, with the investigation leading to today’s indictment.

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

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

Defense counsel: Michael N. Huff Esq., Camden

NEWARK, N.J. – Two women have admitted to their respective roles in a conspiracy to illegally obtain and distribute oxycodone in New Jersey, U.S. Attorney Paul J. Fishman announced today.

Alexis Horvath, 27, of Belleville, New Jersey, pleaded guilty today before U.S. District Judge Esther Salas in Newark federal court to an indictment charging her with conspiracy to distribute oxycodone. Sabrina Vajda, 32, of Brooklyn, New York, pleaded guilty before Judge Salas on June 13, 2016, to a superseding information charging her with conspiracy to distribute oxycodone. 

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

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

Horvath admitted that between Feb. 5, 2014, and Aug. 13, 2014, she personally obtained prescriptions for oxycodone-containing pills from doctors, had those prescriptions filled at pharmacies, and then re-sold the pills to others.  She admitted that she bought 70 30 mg. oxycodone pills from one conspirator on June 29, 2014 in Jersey City, New Jersey, and then sold them to another conspirator. 

Vajda admitted that between May 3, 2014 and Aug. 13, 2014, she also worked with other conspirators to obtain prescriptions for oxycodone-containing pills from doctors, had those prescriptions filled at pharmacies, and then resold the pills to others. On May 7, 2014, she went to a doctor’s office near Paterson, New Jersey with three conspirators and obtained a prescription for pills that contained oxycodone from that doctor. She then sold the oxycodone pills from her prescription to others.

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

The charge to which Horvath and Vajda each pleaded guilty is punishable by a maximum potential penalty of 20 years in prison and a $1 million fine. Sentencing for Horvath and Vajda is scheduled for Sept. 19, 2016.

Of the individuals originally charged with Horvath and Vajda, Victoria Horvath, 43, and Rickie Horvath, 54, of Belleville, New Jersey; Monica Horvath, 22, Tony Marco, 47, and Steven Horvath, 45, all of Rutherford, New Jersey, and Justin Farraj, 24, and Matthew Policarpio, 28, of Newark, have pleaded guilty and await sentencing. Brian Perez, 23, was sentenced to a term of 40 months in prison in September 2014. Luis Rivera, 25, was sentenced to 54 months in prison in August 2015. Daniel Horvath, 27, was sentenced to 27 months in prison and Johnny Horvath, 46, was sentenced to 30 months in prison in April 2016. Charges were dismissed against Belleville pharmacist Vincent Cozzarelli after his death in April 2014.

The indictment remains pending against four other conspirators.  The charges and allegations in the indictment against them are merely accusations, and they remain innocent unless and until proven guilty.

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

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

Defense counsel:

Horvath: Anthony Iacullo Esq., Nutley, New Jersey

Vajda:  Laurie Fierro Esq., Kinnelon, New Jersey

NEWARK, N.J. - An Elizabeth, New Jersey, man today admitted repeatedly aiming a laser pointer at a television news helicopter, U.S. Attorney Paul J. Fishman announced.

Stiven Lopez-Bender, 27, pleaded guilty before U.S. District Judge Kevin McNulty in Newark federal court to an information charging him with one count of aiming a laser pointer at an aircraft. 

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

On Nov. 11, 2015, a news helicopter went to a location in Elizabeth to cover a story. Lopez-Bender admitted that when the helicopter arrived at the location, he aimed a green laser and struck the flight deck of the helicopter through the main windshield. 

Lopez-Bender also admitted he pointed the green laser at the helicopter a second time as he emerged from his SUV and again as he walked toward an apartment building. Afterwards, he pointed the green laser at the helicopter for a fourth time from a window in the apartment building he had just entered.    

The charge is punishable by a maximum potential penalty of five years in prison and a $250,000 fine. Sentencing is scheduled for Sept. 28, 2016.

U.S. Attorney Fishman credited Special Agents and Joint Terrorism Task Force Officers of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, and members of the Elizabeth Police Department, under the leadership of Police Director James Cosgrove, with the investigation leading to today’s plea.

The case is being prosecuted by Joyce M. Malliet of the U.S. Attorney’s Office National Security Unit in Newark.

Defense Counsel: David Holman, Esq.

NEWARK, N.J. – A former corrections officer with the Essex County Correctional Facility was sentenced today to 300 months in prison for sexually assaulting a pretrial detainee and then lying about it to investigators, U.S. Attorney Paul J. Fishman, District of New Jersey, and Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division, announced.

Shawn D. Shaw, 42, of Newark, was previously convicted of both counts of an indictment charging him with depriving an individual of rights under color of law and obstruction of justice following a seven-day trial before U.S. District Judge Esther Salas. The jury deliberated for two days before returning the guilty verdict. Judge Salas imposed the sentence today in Newark federal court.

“The defendant’s conduct in this case is especially abhorrent considering his role as a public servant overseeing the safety and well-being of the prisoners in his charge,” U.S. Attorney Fishman said. “His sentence appropriately reflects the serious nature of his crime and the government’s intolerance of such criminal behavior by those who wear a badge.”

“The defendant abused his position of power to exploit a vulnerable individual whom he was tasked with protecting,” said Principal Deputy Assistant Attorney General Gupta.  “While no amount of jail time can undo the harm he caused, I am hopeful that this sentence will provide some level of resolution to the victim who had the strength and resolve to report the assault.”    

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

Shaw was the only officer on duty in the female unit during the night of a snow blizzard on Dec. 28, 2010. During the night, Shaw made sexually explicit comments to the victim. Although she rejected his advances, records show that in the middle of the night, Shaw opened the victim’s cell door. The victim testified that Shaw entered her cell, and despite her saying “stop” and “no,” Shaw raped her. Expert testimony, including DNA analysis, corroborated the victim’s testimony that Shaw was her assailant.

When investigators questioned Shaw about the attack, he lied and intentionally omitted information from his statement in order to obstruct the investigation. Shaw falsely stated that he did not make sexual comments to the detainee or enter the victim’s cell.

In addition to the prison term, Judge Salas sentenced Shaw to five years of supervised release and ordered him to pay restitution of $6,000 to the victim.

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 the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Carolyn A. Murray, for its assistance.

The government is represented by Criminal Division Chief Thomas Eicher and Assistant U.S. Attorney Shana Chen of the U.S. Attorney’s Office in Newark, with assistance from Trial Attorney Shan Patel of the Justice Department’s Civil Rights Division.

Defense counsel: Mark A. Fury Esq., Mount Holly                                                                                                                         

Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division, and U.S. Attorney Paul J. Fishman of the District of New Jersey announced today that Shawn D. Shaw, 42, of Newark, New Jersey, a former correctional officer with the Essex County, New Jersey, Correctional Facility, was sentenced today to 25 years in prison for sexually assaulting a pretrial detainee and then lying about it to investigators.

Shaw was convicted on Feb. 5, 2016, of both counts of an indictment charging him with depriving an individual of rights under color of law and obstruction of justice following a seven-day trial before U.S. District Judge Esther Salas of the District of New Jersey.  Judge Salas imposed the sentence today in Newark federal court.

“The defendant abused his position of power to exploit a vulnerable individual whom he was tasked with protecting,” said Principal Deputy Assistant Attorney General Gupta.  “While no amount of jail time can undo the harm he caused, I am hopeful that this sentence will provide some level of resolution to the victim who had the strength and resolve to report the assault.”

“The defendant’s conduct in this case is especially abhorrent considering his role as a public servant overseeing the safety and well-being of the prisoners in his charge,” said U.S. Attorney Fishman.  “His sentence appropriately reflects the serious nature of his crime and the government’s intolerance of such criminal behavior by those who wear a badge.”

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

Shaw was the only officer on duty in the female unit during a blizzard on Dec. 28, 2010.  During the night, Shaw made sexually explicit comments to the victim.  Although she rejected his advances, records show that in the middle of the night, Shaw opened the victim’s cell door.  The victim testified that Shaw entered her cell, and despite her saying “stop” and “no,” Shaw raped her.  Expert testimony, including DNA analysis, corroborated the victim’s testimony that Shaw was her assailant.

When investigators questioned Shaw about the attack, he lied and intentionally omitted information from his statement in order to obstruct the investigation.  Shaw falsely stated that he did not make sexual comments to the detainee or enter the victim’s cell.

In addition to the prison term, Judge Salas sentenced Shaw to five years of supervised release and ordered him to pay $6,000 in restitution.

This case was investigated by the FBI’s Newark Division and was prosecuted by Criminal Division Chief Thomas Eicher and Assistant U.S. Attorney Shana Chen of the District of New Jersey and Trial Attorney Shan Patel of the Civil Rights Division’s Criminal Section.

TRENTON, N.J. - A Pottersville, New Jersey, man today admitted filing a false tax return and evading corporate taxes of American Tutor Inc., a company that offered supplemental educational services to New Jersey school districts, U.S. Attorney Paul J. Fishman announced.

James Wegeler, 73, pleaded guilty before U.S. District Judge Anne E. Thompson in Trenton federal court to one count of corporate tax evasion and one count of aiding and assisting in the filing of a false tax return as charged in the information filed today.

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

Wegeler was a certified public accountant who served as the vice president and chief financial officer of American Tutor. In 2013, Wegeler filed a return on behalf of American Tutor that contained materially false information in order to reduce American Tutor’s tax liability.  Wegeler intentionally inflated American Tutor’s business expenses by claiming that it paid wages, tips and other compensation to its employees above and beyond what it had actually paid during the tax year 2012.

In addition, in 2011, Wegeler intentionally prepared a fraudulent tax return for an individual taxpayer that did not include substantial income the taxpayer had earned in tax year 2010.

Wegeler admitted that his actions resulted in a total tax loss of $1,494,521 to the IRS.

The corporate tax evasion charge carries a maximum potential penalty of five years in prison. The charge of aiding and assisting in the filing of false tax returns carries a potential penalty of three years in prison. Both charges are punishable by a potential $250,000 fine. Sentencing is scheduled for Oct. 5, 2016.

U.S. Attorney Fishman credited special agents of the IRS, under the direction of Special Agent in Charge Jonathan D. Larsen, and special agents of the U.S. Department of Education, under the direction of Special Agent in Charge Brian M. Hickey, with the investigation leading to today’s plea.

The government is represented by Assistant U.S. Attorney José R. Almonte of the U.S. Attorney’s Office Special Prosecutions Division.

Defense counsel: Thomas Calcagni, Newark, New Jersey

TRENTON, N.J. – An internal medicine physician practicing in Jamesburg, New Jersey, was sentenced today to 12 months in prison for accepting bribes in exchange for patient referrals to a mobile diagnostic company, U.S. Attorney Paul J. Fishman announced.

Paresh Patel, 55, of Franklin Township, New Jersey, previously pleaded guilty before U.S. District Judge Mary L. Cooper to an information charging him with violating the Anti-Kickback Statute. Judge Cooper imposed the sentence today in Trenton federal court.

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

From September 2009 through December 2013, Paresh Patel accepted more than $174,000 in bribes for referring his patients to the Morris County-based mobile diagnostic testing company, Biosound Medical Services (referenced in the Information as “Company 1”), operated by Nita K. Patel and Kirtish N. Patel (no relation to Paresh Patel). As part of the bribes, Biosound Medical Services paid Paresh Patel’s property tax obligations and home renovation expenses.

In addition to the prison term, Paresh Patel was also ordered to pay a $6,000 fine. He has also forfeited more than $174,000 he received as part of the bribery scheme.

Nita K. Patel and Kirtish N. Patel, pleaded guilty on Nov. 17, 2015 to health care fraud for forging physician signatures on diagnostic reports that were never reviewed by a specialist physician and were actually authored by Kirtish N. Patel, who did not have a medical license. Both await sentencing.

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

The government is represented by Assistant U.S. Attorney Danielle Alfonzo Walsman of the U.S. Attorney’s Office Health Care and Government Fraud Unit in Newark.

U.S. Attorney Fishman reorganized the health care fraud practice 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: Riza Dagli Esq.

                                                           

NEWARK, N.J. – A doctor who admitted taking bribes in connection with a long-running and elaborate test referral scheme operated by Biodiagnostic Laboratory Services LLC (BLS), of Parsippany, New Jersey, its president and numerous associates was sentenced today to 37 months in prison, U.S. Attorney Paul J. Fishman announced.

Bret Ostrager, 51, of Woodbury, New York, a doctor with practices in Nassau County, New York, previously pleaded guilty before U.S. District Judge Stanley R. Chesler to Counts One, Two and Five of an indictment charging him with conspiracy to violate the Anti-Kickback Statute and the Federal Travel Act by accepting bribes, one substantive violation of the Anti-Kickback Statute, and one substantive violation of the Federal Travel Act. Judge Chesler imposed the sentence today in Newark federal court.

Ostrager is one of 39 people – 26 of them doctors – who have pleaded guilty in connection with the bribery scheme, which its organizers have admitted involved millions of dollars in bribes and resulted in more than $100 million in payments to BLS from Medicare and various private insurance companies. It is believed to be the largest number of medical professionals ever prosecuted in a bribery case. The investigation has to date recovered more than $12 million through forfeiture.

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

Ostrager admitted that, between February 2011 and April 2013, he received monthly cash bribes of approximately $3,300 from BLS employees and associates. He periodically solicited and received from the BLS employees and associates tickets and meals that cost thousands of dollars. These additional bribes in response to specific requests from Ostrager included tickets to a New York Mets baseball game, a New York Knicks basketball game, a Katy Perry concert, a Justin Bieber concert, and the Broadway show “Newsies.” In exchange, Ostrager referred patient blood samples to BLS. Ostrager’s referrals generated approximately $909,000 in lab business for BLS.

In addition to the prison term, Judge Chesler sentenced Ostrager to one year of supervised release, fined him $30,000 and ordered forfeiture of $101,271.

U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher; inspectors of the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge Cynthia Shoffner; the U.S. Department of Health and Human Services, Office of Inspector General, under the direction of Special Agent in Charge Scott J. Lampert; and IRS–Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen, with the ongoing investigation leading to today’s sentencing.

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

U.S. Attorney 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 $1.29 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: Marc Agnifilo Esq., New York

NEWARK, N.J. – A Jersey City man was arrested today on charges that he defrauded investors using phony contracts he had to sell olive oil to major retailers and then used the money for purchases, U.S. Attorney Paul J. Fishman announced. 

Antonio Fasolino, 59, of Jersey City, New Jersey, was arrested by special agents of the FBI and charged by complaint with wire fraud. He is scheduled to appear this afternoon before U.S. Magistrate Judge Mark Falk in Newark federal court.     

According to the criminal complaint:

Fasolino owned several companies that were purportedly involved in the manufacture, sale and distribution of pasta, tomato sauce, olive oil and other food products. In 2012, Fasolino allegedly engaged in an investment fraud scheme in which he obtained more than $3.4 million from two victims by falsely representing that Fasolino’s companies had been awarded lucrative contracts to sell olive oil. In fact, there were never any such contracts and Fasolino spent the money on himself, including car and mortgage payments, apartment rentals, a wedding, college tuition and credit card payments.

The count of wire fraud with which the defendant is charged carries a maximum potential penalty of 20 years in prison and a fine of $250,000, or twice the gross gain or loss caused by the scheme.

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

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

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

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

NEWARK, N.J. - A Jersey City, New Jersey, man today admitted stealing more than $250,000 from the Jersey City Child Development Centers Inc. (“JCCDC”), an organization that provided early childhood development services and education to under-privileged children, U.S. Attorney Paul J. Fishman announced.

Robert E. Mays, 38, pleaded guilty before U.S. District Judge Susan D. Wigenton in Newark federal court to an information charging him with one count of wire fraud.

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

Mays was the executive director of JCCDC from Sept. 2013 to May 2014. Mays admitted that he stole more than $250,000 from JCCDC by unilaterally increasing his annual salary from $96,500 to $155,000 after being employed by JCCDC for only two months. He also admitted that he created false board of director’s minutes to give the impression JCCDC authorized the salary increase.

In addition, Mays admitted he withdrew funds from a JCCDC bank account to pay for unauthorized personal expenses, including a 2007 Maserati Quattroporte and a fur coat worth thousands of dollars.

The wire fraud count to which Mays pleaded guilty carries a maximum potential penalty of 20 years in prison and a fine of $250,000, or twice the gross gain or loss resulting from the scheme, as well as mandatory restitution in the full amount of the loss to JCCDC. Sentencing is scheduled for Sept. 20, 2016.

U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher, and special agents of the U.S. Department of 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 plea. He also thanked the Hudson County Prosecutor’s Office, under the direction of Prosecutor Esther Suarez, for its assistance in the investigation.

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

Defense counsel: Alexander W. Booth Jr., Union City, New Jersey

NEWARK, N.J. – A gang member who sold crack-cocaine for the New Jersey set of the Grape Street Crips pleaded guilty today to drug trafficking charges, U.S. Attorney Paul J. Fishman announced.

Ernest Valentine, a/k/a “Bop,” 31, pleaded guilty before U.S. District Judge Jose L. Linares in Newark federal court to an information charging him with conspiracy to distribute 28 grams or more of crack-cocaine.

On June 2, 2016, Trae Roberts, a/k/a “Trae Pound,” 24, pleaded guilty to the same charge. To date, 37 members and associates of the NJ Grape Street Crips have pleaded guilty to drug trafficking, firearms and other charges.

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

The New Jersey Grape Street Crips controlled drug trafficking and other criminal activities in various areas of Newark, including the neighborhood of 6th Avenue and North 5th Street. Both Valentine and Roberts obtained crack-cocaine from more senior gang members and associates who used and shared a dedicated cell phone to accept orders for thousands of clips of crack-cocaine. These gang-members included Hakeem Vanderhall, a/k/a “Keem,” a/k/a “Sugar Bear,” Eric Concepcion, a/k/a “Eddie Arroyo,” a/k/a “E-Wax,” a/k/a “Wax,” and Rashan Washington, a/k/a “Shoota.”

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.

Both Valentine and Robert face a five-year mandatory minimum term of imprisonment, a maximum potential sentence of 40 years in prison, and a $5 million fine.

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 guilty pleas. 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:

Valentine: Stacy A. Biancamano Esq., Chatham, New Jersey

Roberts: Jean D. Barrett Esq., Montclair, New Jersey

NEWARK, N.J. – The sole proprietor of a company that purportedly provided internet research and technology consulting services to the Newark Watershed Conservation and Development Corporation (NWCDC) today admitted that she failed to report substantial income she received from the NWCDC, U.S. Attorney Paul J. Fishman announced.

Retha Renee McCoy, 53, of Newark, pleaded guilty before U.S. District Judge Jose Linares in Newark federal court to Count 4 of an information charging her with making and subscribing a false U.S. Individual Income Tax Return, Form 1040, for tax year 2012, which intentionally omitted approximately $56,792 in income that she received from the NWCDC in that year.

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

From September 2007 to March 2013, McCoy received approximately $355,519 from the NWCDC, which was paid in the form of checks written to McCoy individually, or to a company of which she was the sole proprietor, Precision Technology Services (Precision).

The proceeds that the NWCDC paid to McCoy far exceeded the value of any work performed by her as a consultant for the NWCDC.  In fact, a substantial portion of these payments were fraudulent and orchestrated to fund a stream of concealed payments from McCoy to Linda Watkins Brashear, the Executive Director of the NWCDC at the time. Brashear pleaded guilty in December 2015 to defrauding the NWCDC of her honest services in the affairs of the NWCDC by taking kickbacks (including payments from McCoy), and of the NWCDC’s money and property, as well as to subscribing to a false federal personal income tax return. 

McCoy further admitted that she had failed to report significant income received from the NWCDC directly or through Precision on her 2009, 2010 and 2011 federal personal income tax returns.

The charge of filing a false tax return to which McCoy pleaded guilty is punishable by a maximum potential penalty of three years in prison and a $250,000 fine, or twice the gain or loss from the offense. Sentencing is scheduled for Sept. 12, 2016.

U.S. Attorney Fishman credited special agents of the FBI’s Newark Field Office, under the direction of Special Agent in Charge Timothy Gallagher; IRS – Criminal Investigation, Newark Field Office, under the direction of Special Agent in Charge Jonathan D. Larsen; and the U.S. Department of Housing and Urban Development, Office of Inspector General, Newark office, under the direction of Special Agent in Charge Christina Scaringi, as well as criminal investigators of the U.S. Attorney’s Office, with the investigation leading. U.S. Attorney Fishman also thanked the New Jersey Comptroller’s Office, under the direction of Philip J. Degnan, for its assistance in the investigation.

The government is represented by Assistant U.S. Attorneys Mala Ahuja Harker, Jacques Pierre and Leslie Schwartz of the U.S. Attorney’s Office Special Prosecutions Division.

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

NEWARK, N.J. – Four people have been arrested and charged with stealing more than $900,000 from a New Jersey-based trucking company, U.S. Attorney Paul J. Fishman announced today.   

Lisa Popewiny, 53, of Clifton, New Jersey, and brothers Angel D. Vidal, 24, and Angel Gabriel Vidal, 22, of Paterson, New Jersey, and Miguel Vidal, 22, of Jersey City, New Jersey, are each charged by complaint with one count of wire fraud. Federal authorities arrested Popewiny, Angel D. Vidal and Angel Gabriel Vidal on June 2, 2016. Miguel Vidal was arrested today. All four defendants appeared before U.S. Magistrate Judge Stephen C. Mannion in Newark federal court; Miguel Vidal appeared today and the remaining defendants appeared yesterday. 

According to the complaint:

Popewiny was the payroll clerk at Clifford B. Finkle Jr. Inc, a Clifton company that provided transportation and freight services to various public and private entities located in New Jersey, New York, and elsewhere. From June 2012 to April 2015, Popewiny, Angel D. Vidal, Angel Gabriel Vidal, and Miguel Vidal – a former truck driver for the Company – allegedly engaged in a scheme to defraud the company out of $920,380. 

Popewiny falsified payroll records in order to generate fraudulent paychecks payable to non-existent employees. Angel D. Vidal, Angel Gabriel Vidal, and Miguel Vidal then converted the paychecks, many of which were deposited into their bank accounts and then funneled out in cash. The scheme came to light when owners of the company, in an effort to investigate suspected fraud, distributed the payroll checks to employees – a task normally completed by Popewiny. After all of the payroll checks had been distributed, six paychecks remained that turned out to be fraudulently issued. Further investigation revealed that Popewiny input false hours for at least 12 different individuals.

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

U.S. Attorney Fishman credited criminal investigators in the U.S. Attorney’s Office, postal inspectors from the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge Cynthia Shoffner, and members of the U.S. Marshals’ Fugitive Task Force, under the direction of U.S. Marshal Juan Mattos Jr., with the investigation leading to the arrests and charges.

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

The government is represented by Assistant U.S. Attorney Cari Fais of the Special Prosecution Division in Newark.

Defense counsel:

Angel D. Vidal: K. Anthony Thomas Esq., Assistant Federal Public Defender, Newark

CAMDEN, N.J. – An Atlantic County, New Jersey, woman was sentenced today to 72 months in prison for her role in a $3 million conspiracy to scam customers by offering phony consulting services to owners of timeshares through the New Jersey-based Vacation Ownership Group LLC, U.S. Attorney Paul J. Fishman announced.

Ashley Lacerda, 36, of Egg Harbor Township, New Jersey, was convicted in September 2013 of one count of conspiracy to commit mail and wire fraud, one count of mail fraud and four counts of wire fraud following a seven-week trial before U.S. District Judge Noel L. Hillman in Camden federal court.

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

Ashley Lacerda and her codefendants schemed to defraud hundreds of timeshare owners by offering fraudulent consulting services through their company, the Vacation Ownership Group (now VO Financial).  Her husband, Adam Lacerda, 32, the company founder, president and chief executive officer, devised the company’s fraudulent sales pitches. He directed his sales force to tell numerous lies to VO customers, including that VO worked with the banks holding the customers’ loans, would use money sent by customers to pay off the customers’ loans on their timeshares, and could cancel customers’ timeshares with money back. Ashley Lacerda, the company vice president and chief operating officer, sent fraudulent contracts to customers and managed the office.

Three codefendants were convicted with Ashley Lacerda at the same trial: Ian Resnick, 41, of Absecon, New Jersey, a convicted bank robber, started as a salesman giving the fraudulent sales pitch but became Adam Lacerda’s enforcer, with the title “director of compliance.” Genevieve Manzoni, 50, of Lake Worth, Fla. was a top VO sales representative who falsely told one victim she worked with a bank, another victim that she worked with a timeshare developer. Adam Lacerda was sentenced in June 2015 to 324 months in prison; Resnick was sentenced in April 2016 to 18 years in prison and Manzoni was sentenced in December 2015 to 42 months in prison.

The 15 victims who testified at trial – including business executives, veterans, senior citizens, a lawyer and a professor – were defrauded out of a total of $200,000 by the defendants’ sophisticated scheme.

In addition to the prison term, Judge Hillman sentenced Ashley Lacerda to three years of supervised release. Restitution will be determined at a later date.

U.S. Attorney Fishman credited special agents of FBI’s Atlantic City Resident Agency, under the direction of Special Agent in Charge Timothy Gallagher in Newark; and special agents from the Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, under the direction of Special Agent Cheryl Garcia, New York Region, for the investigation. He also thanked the N.J. Department of Labor and Workforce Development for its assistance.

The government is represented by Assistant U.S. Attorney R. David Walk Jr. of the U.S. Attorney’s Office Criminal Division in Camden.

Defense counsel:

Adam Lacerda: Mark E. Cedrone Esq., Philadelphia

Ashley Lacerda: Charles Nugent Esq., Marlton, New Jersey

Ian Resnick: Michael E. Riley Esq., Philadelphia

Genevieve Manzoni: Robert L. Tarver Jr. Esq., of Toms River, New Jersey

NEWARK, N.J. – Two men today admitted their roles in a computer hacking and identity theft scheme that hijacked customer email accounts, stole personally identifiable information (PII) from millions of people, and generated more than $2 million in illegal profits, U.S. Attorney Paul J. Fishman announced.

Tomasz Chmielarz, 33, of Rutherford, New Jersey, pleaded guilty to Count One and Count Three of an indictment charging him with conspiracy to commit fraud and related activity in connection with computers and conspiracy to commit fraud and related activity in connection with electronic mail. Devin James McArthur, 28, of Ellicott City, Maryland, pleaded guilty to Count Two of the indictment charging him with conspiracy to commit wire fraud. Both defendants pleaded today before U.S. District Judge William J. Martini in Newark federal court.

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

Beginning as early as 2011, Timothy Edward Livingston, 30, of Boca Raton, Florida, and others allegedly operated A Whole Lot of Nothing LLC — a business that specialized in sending unsolicited, or “spam,” emails on behalf of its clients. Livingston’s clients included legitimate businesses, such as insurance companies that wished to send bulk emails to advertise their businesses, as well as illegal entities, such as online pharmacies that sold narcotics without prescriptions. Typically, Livingston charged $5 to $9 for each spam email that resulted in a completed transaction for a client.

Many internet service providers use filters to prevent spam from reaching their customers’ email accounts. Chmielarz admitted that beginning in January 2012, Livingston solicited him to write computer programs that send spam in a manner that conceals the true origin of the email and bypasses spam filters. In addition, Livingston and Chmielarz used proxy servers and botnets to remain anonymous, hide the true origin of the spam, and evade anti-spam filters and other spam blocking techniques. Livingston also allegedly registered certain websites used in the spam campaigns in the name of his alias, “Mark Lloyd,” to avoid detection.

Chmielarz admitted that he and Livingston hacked into individual email accounts and seized control of corporate mail servers to further their spam campaigns. For instance, they created custom software designed to hack into the customer email accounts of a company identified in the indictment as “Corporate Victim 1.” Once their email account software gained access to a Corporate Victim 1 user’s account, it created sub-accounts and used them to send out spam. By using proxy servers and Corporate Victim 1’s customer accounts, Livingston and Chmielarz were able to send out massive amounts of spam without identifying themselves as the senders.

Chmielarz also admitted that he and Livingston created custom software that exploited vulnerabilities in a number of corporate websites, including one identified in the indictment as “Corporate Victim 2,” which allowed Livingston and Chmielarz to use Corporate Victim 2’s email servers to send out spam that appeared to be from Corporate Victim 2, but in reality was from Livingston and his conspirators.

Livingston, Chmielarz and McArthur also worked together to steal databases containing the PII of millions of Americans for use in spam campaigns. In May of 2013, Livingston and Chmielarz discussed stealing confidential business information from “Corporate Victim 3,” as identified in the indictment. In an online chat, Livingston told Chmielarz, “here is the site I need scrapped (sic),” and provided Chmielarz with an address for Corporate Victim 3’s website and the login credentials for an employee. “Scraping” is a technique employed to extract large amount of data from websites.

In another online chat, Livingston told Chmielarz that the database they were going to steal from Corporate Victim 3 contained 10 million records. Livingston subsequently paid Chmielarz to write a computer program to steal the database.

From February 2014 through February 2015, McArthur worked as a sales representative at a corporation identified in the indictment as “Corporate Victim 4.” In a series of online chats in August 2014, Livingston, Chmielarz, and McArthur discussed using McArthur’s position at Corporate Victim 4 to steal confidential business information, including the PII of millions of the company’s customers.

McArthur admitted that on Aug.11, 2014, he gave Livingston unauthorized access to a remote administration tool on a computer connected to Corporate Victim 4’s network. Livingston and Chmielarz used the access to steal the names, addresses, phone numbers, and email addresses of potential, current, and former Corporate Victim 4 customers for use in spam campaigns.

In an online chat dated Sept. 3, 2014, Livingston and McArthur discussed the contents of the database that they had stolen from Corporate Victim 4. McArthur estimated that they had succeeded in stealing 24.5 million records.

The charges of conspiracy to commit fraud and related activity in connection with computers and conspiracy to commit fraud and related activity in connection with electronic mail to which Chmielarz pleaded guilty each carry a maximum potential penalty of five years in prison and $250,000 fine, or twice the gain or loss from the offense. The conspiracy to commit wire fraud charge to which McArthur pleaded guilty carries a potential penalty of 20 years in prison and a $250,000 fine, or twice the gain or loss from the offense. Sentencing for both defendants is scheduled for Sept. 13, 2016.

Livingston is scheduled for trial on Oct. 13, 2016, before Judge Martini. The charges and allegations against him are merely accusations and he is considered innocent unless and until proven guilty.

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

The government is represented by Assistant U.S. Attorney Daniel Shapiro of the Computer Hacking and Intellectual Property Section of the Economic Crimes Unit in Newark, Senior Trial Attorney William Hall of the Department of Justice’s Criminal Division Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Peter Gaeta of the Asset Forfeiture-Money Laundering Unit in Newark.

Defense counsel:

Chmielarz: Michael Koribanics Esq., Clifton, New Jersey

McArhtur: Joshua P. Cohn, Saddle Brook, New Jersey

NEWARK, N.J. - A Nevada man today admitted defrauding investors out of more than $5 million, U.S. Attorney Paul J. Fishman announced.

Lee Vaccaro, 44, of Las Vegas, Nevada, pleaded guilty before U.S. District Judge William J. Martini in Newark federal court to a two-count information charging him with conspiracy to commit securities fraud and securities fraud.

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

Vaccaro was the chief marketing officer and vice president of investor relations for eAgency, a California-based company developing mobile security products. Vaccaro admitted that he and an individual identified as “Conspirator #1” sold investors interests in companies they controlled, and falsely represented to investors that the companies held warrants in eAgency. Warrants are derivative securities that give the holder the right to purchase common stock at a specific price within a certain time frame.

Vaccaro also admitted that he and Conspirator #1 made oral and written misrepresentations concerning the existence, number, validity, and term of eAgency warrants purportedly owned by the investment companies, as well as about the amount of money Conspirator #1 had personally invested in and raised for eAgency, and Conspirator #1’s current position at eAgency.

In addition, Vaccaro admitted that he and Conspirator #1 created and showed to investors numerous forged documents purporting to reflect the issuance of warrants to entities controlled by Vaccaro, and the transfer of those warrants to a company controlled by Conspirator #1. He admitted that most of the eAgency warrants purportedly transferred by Vaccaro to Conspirator #1’s company had, in fact, never been issued.

Beginning in January 2011, the dollar amount of interests Vaccaro and Conspirator #1 sold in the investment companies began to surpass the dollar amount of valid warrants held by the investment companies. Neither Vaccaro nor Conspirator #1 disclosed to investors the risk that their investments would be diluted by the sale of additional interests in the companies.

Vaccaro and Conspirator #1’s actions defrauded investors of more than $5 million.

The conspiracy to commit securities fraud count to which Vaccaro pleaded guilty carries a maximum potential penalty of five years in prison and a fine of up to $250,000, or twice the gross gain or loss from the offense. The securities fraud count carries a maximum potential penalty of 20 years in prison and a $5 million fine. Sentencing is scheduled for Sept. 13, 2011.

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 guilty pleas. He also thanked the U.S. Securities and Exchange Commission’s New York Regional Office, under the direction of Sanjay Wadhwa and the New Jersey Bureau of Securities, under the direction of Laura Posner.

The government is represented by Assistant U.S. Attorney Daniel Shapiro and Deputy Chief Zach Intrater of the U.S. Attorney’s Office Economic Crimes Unit in Newark.

If you believe you are a victim of or otherwise have information concerning this alleged scheme, you are encouraged to contact the FBI at 973-792-3000.

Today’s plea is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes.  With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud.  Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations.  Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants.  For more information on the task force, please visit www.StopFraud.gov.

Defense counsel: Robert C. Scrivo, Esq., Newark

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

Matthew Policarpio, 28, of Newark, New Jersey, pleaded guilty before U.S. District Judge Esther Salas in Newark federal court to an indictment charging him with conspiracy to distribute oxycodone.

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

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

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

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

The charge to which Policarpio pleaded guilty is punishable by a maximum potential penalty of 20 years in prison and a $1 million fine. Sentencing is scheduled for Sept. 12, 2016.

Of the individuals originally charged with Policarpio, Victoria Horvath, 43, and Ricky Horvath, 54, of Belleville, New Jersey; Monica Horvath, 22, Tony Marco, 47, and Steven Horvath, 45, all of Rutherford, New Jersey, and Justin Farraj, 24, of Newark, New Jersey, have pleaded guilty and await sentencing. Brian Perez, 23, was sentenced to a term of 40 months in prison in September 2014. Luis Rivera, 25, was sentenced to 54 months in prison in August 2015. Daniel Horvath, 27, was sentenced to 27 months in prison and Johnny Horvath, 46, was sentenced to 30 months in prison in April 2016. Charges were dismissed against Belleville pharmacist Vincent Cozzarelli after his death in April 2014.

The indictment remains pending against three other conspirators. The charges and allegations in the indictment against them are merely accusations, and they remain innocent unless and until proven guilty.

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

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

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

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

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

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

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

Today, Iribe admitted that he conspired with others to traffic the cocaine from California to New Jersey. He must also forfeit $446,310 in cash, three handguns, and an AR-1 assault rifle that were recovered when he was arrested in March 2015. 

The distribution charge to which Iribe pleaded guilty carries a mandatory penalty of five years in prison, a maximum potential penalty of 40 years in prison, and $5 million fine. Sentencing is scheduled for Oct. 4, 2016.

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

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

Defense Counsel:   Michael R. Mcdonnell, Esq. of La Habra, California

NEWARK, N.J. – A citizen of the Republic of Bulgaria was sentenced to 46 months in prison today for his involvement in a $6 million fraudulent tax return scheme that used personal identifying information stolen from multiple accounting firm networks, U.S. Attorney Paul J. Fishman announced.

Vanyo Minkov, 33, previously pleaded guilty before U.S. District Judge Jose L. Linares to a superseding information charging him with one count of conspiring to file false and fraudulent tax returns. Judge Linares imposed the sentence today in Newark federal court.

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

In late 2012, Minkov and his conspirators hacked into the networks of at least four accounting firms and stole the 2011 tax filings for over 1,000 of the firms’ clients. Minkov and others then used the stolen information to file fraudulent tax returns in the clients’ names for the 2012 tax year or sold the information to others for the same purpose. To date, the IRS has identified over $6 million in fraudulent claims made in connection with the scheme.

In addition to the prison term, Judge Linares ordered Minkov to serve two years of supervised release and pay restitution of $2,702,555.

U.S. Attorney Fishman credited special agents of the U.S. Secret Service, Newark Field Office, under the direction of Acting Special Agent in Charge Jeffrey Wood, and special agents of the IRS-Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen, for the investigation leading to today’s plea. U.S. Attorney Fishman also thanked the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, the Justice Department’s Office of International Affairs in Washington, as well as the Supreme Cassation Prosecutor’s Office of the Republic of Bulgaria and its law enforcement partners, for their support.

The government is represented by Assistant U.S. Attorney Andrew S. Pak of the Computer Hacking and Intellectual Property Section of the U.S. Attorney’s Office Economic Crimes Unit and Assistant U.S. Attorney Barbara Ward, Acting Chief of the office’s Asset Forfeiture and Money Laundering Unit.

Defense counsel: Jack Arseneault Esq., Chatham, New Jersey       

Approximately 66 Dogs Rescued

NEWARK, N.J. – Six New Jersey residents were among nine individuals charged today in four states for their alleged roles in an interstate dog-fighting network spanning from New Mexico to New Jersey, 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.

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 dogs intended for use in dog fighting. 

Criminal complaints filed in New Jersey named the following individuals, eight of whom were arrested:  

• Anthony “Monte” Gaines, 35, of Vineland, New Jersey (already in state custody on unrelated charges)

• Justin Love, 36, of Westville, New Jersey

• Lydell Harris, 30, of Vineland, New Jersey

• Mario Atkinson, 40, of Asbury Park, New Jersey

• Frank Nichols, 39, of Millville, New Jersey

• Tiffany Burt, 34, of Vineland, New Jersey

• Dajwan Ware, 43, of Fort Wayne, Indiana

• Pedro Cuellar, 46, of Willow Springs, Illinois

• Robert Arellano, 62, of Albuquerque, New Mexico

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

The three criminal complaints charge residents of New Jersey and out-of-state residents for their alleged involvement in a multi-state dog fighting network. The charges include alleged criminal acts related to transporting, delivering, buying, selling, receiving, and possessing pit bull-type dogs for dog fighting ventures and conspiring to commit these acts in New Jersey and elsewhere throughout the United States.

From October 2015 through the present, the defendants and their associates participated in dog-fighting ventures in which pit bull-type dogs were set up for matches to maul and attack each other and fight – often until one or both dogs die – and facilitated these ventures by transporting and delivering dogs between dog fighters in various states. The federal undercover investigation revealed that the defendants discussed graphic accounts of prior dog fights they and their associates staged and furthered their dog-fighting ventures through the exchange of information concerning dog-fighting bloodlines, training methods, fighting techniques and the market for buying and selling dogs.

During the investigation, various indications of the dog-fighting ventures were found and seen on some of the defendants’ properties. These included scarred dogs and dogs stacked in crates; dog fighting paraphernalia, such as dog treadmills, “flirt” poles used to build jaw strength and increase aggression, and animal pelts. Also found and seen were surgical instruments, syringes and other tools used to mend dogs in lieu of seeking veterinary attention.

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.”

“There is no place in New Jersey – or anywhere else, for that matter – for a vicious blood sport like dog fighting,” U.S. Attorney Fishman said. “Not only is it unspeakably cruel to the animals that are raised to participate in dog fighting, but animals trained in this way can be extremely dangerous to the public.”

“Dog fighting is truly an organized criminal activity, as well as a deplorable trade in the suffering of animals.” Assistant Attorney General Cruden said.  “This case marks the beginning of a coordinated effort at the Department of Justice to meet organized dog fighting head-on with a strategic, aggressive federal response.”

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, with the assistance of the U.S. Attorney’s Offices in the District of New Mexico, Northern District of Illinois and Northern District of Indiana.

A criminal complaint is an allegation based upon a finding of probable cause by a magistrate judge. A defendant is presumed innocent unless and until convicted.  If convicted, each defendant faces up to five years in prison and a $250,000 fine per count of animal fighting charges. The investigation is ongoing.

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

NEWARK, N.J. – Eight members of the New Jersey branch of the international street gang “La Mara Salvatrucha,” or “MS-13” – including the branch’s founding member – were convicted by a federal jury today of racketeering-related crimes, including multiple acts of violence, U.S. Attorney Paul J. Fishman and Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division announced.

Santos Reyes-Villatoro, a/k/a “Mousey,” 43, of Bound Brook, New Jersey; Mario Oliva, a/k/a “Zorro,” 29, of Plainfield, New Jersey; Roberto Contreras, a/k/a “Demonio,” 27, of Bound Brook; Julian Moz-Aguilar, a/k/a “Humilde,” 28, of Plainfield; Hugo Palencia, a/k/a “Taliban,” 24, of Plainfield; Jose Garcia, a/k/a “Chucky” and “Diabolico,” 24, of Plainfield; Esau Ramirez, a/k/a “Panda,” 25, of Plainfield; and Cruz Flores, a/k/a “Bruja,” 30, of Bound Brook, were convicted following a 16-week trial before U.S. District Judge Stanley R. Chesler in Newark federal court. The jury deliberated for approximately four days before returning the verdicts. Sentencing is set for Sept. 7, 2016. A chart outlining the counts of which each defendant was found guilty and the maximum potential penalties associated with each of those counts is attached.

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

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

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

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

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

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

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

Garcia also recruited and hired MS-13 members from the Maryland-based Pinos clique to come to New Jersey and murder a woman in exchange for $40,000. The Pinos clique members were arrested by authorities as they pulled into Plainfield. 

After several MS-13 members were arrested in July 2011, Ramirez and Garcia used phones from inside the Union County, New Jersey, jail to order the murder of three witnesses believed to be cooperating with police and responsible for their arrests. According to evidence presented at trial, members of the PLS also were responsible for an attempted murder of suspected Latin King members near a car wash in Plainfield; the attempted murder of suspected Latin King members in January 2009; a machete attack in May 2011 and another in June 2011 on the train tracks passing through Plainfield; an attempted murder shooting in Plainfield in May 2011; and several other violent crimes, including extortion, robbery and several weapons offenses.

The defendants were originally charged in a 26-count indictment returned by a federal grand jury in September 2013. After today’s verdicts, 13 of the 14 individuals charged in that indictment have been convicted. One defendant remains a fugitive.

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

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

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

Defendant

Found Guilty/Max Penalties

Reyes-Villatoro

Count 1: Racketeering Conspiracy- Life in Prison;

Count 2: Murder in Aid of Racketeering (Victim 5)- Mandatory life sentence

Count 3: Use of Firearm in Violent Federal Crime (Victim 5)- Life in prison; 10-year mandatory minimum

Count 4: Murder Resulting from Federal Firearm Crime (Victim 5)- Life in Prison

Oliva

Count 1: Racketeering Conspiracy- Life in Prison

Count 8: Murder in Aid of Racketeering (Victim 10)- Mandatory life sentence

Count 9: Use of Firearm in Violent Federal Crime (Victim 10)- Life in prison; 10-year mandatory minimum

Count 10: Murder Resulting from Federal Firearm Crime (Victim 10)- Life in Prison

Contreras

Count 1: Racketeering Conspiracy- 20 years in prison

Count 11: Accessory After the Fact to Murder in Aid of Racketeering (Victim 10)- 15 years

Moz-Aguilar

Count 1: Racketeering Conspiracy- Life in Prison

Count 2: Murder in Aid of Racketeering (Victim 5)- Mandatory life sentence

Count 3: Use of Firearm in Violent Federal Crime (Victim 5)- Life in prison; 10-year mandatory minimum

Count 4: Murder Resulting from Federal Firearm Crime (Victim 5)- Life in Prison

 

Palencia

Count 1: Racketeering Conspiracy- Life in Prison

Count 12: Murder in Aid of Racketeering (Victim 11)- Mandatory life sentence

Count 13: Use of Firearm in Violent Federal Crime (Victim 11)- Life in prison; 10-year mandatory minimum

Count 14: Murder Resulting from Federal Firearm Crime (Victim 11)- Life in Prison

 

Garcia

Count 1: Racketeering Conspiracy- 20 years

Count 15: Murder-for-Hire Conspiracy- 10 years

Count 16: Interstate Travel with Intent to Commit Murder-for-Hire- 10 years

Count 20: Conspiracy to Commit Murder in Aid of Racketeering- 10 years

Count 26: Conspiracy to Commit Murder in Aid of Racketeering (Victim 16, Victim 22, Victim 23)- 10 years

Ramirez

Count 1: Racketeering Conspiracy- 20 years

Count 26: Conspiracy to Commit Murder in Aid of Racketeering (Victim 16, Victim 22, Victim 23)- 10 years

Flores

Count 18: Conspiracy to Commit Murder in Aid of Racketeering (Victim 15)- 10 years

Count 19: Murder in Aid of Racketeering (Victim 15)- Mandatory life sentence

 

Defense counsel:

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

Oliva: Henry Klingeman Esq. and Kenneth Kayser Esq.

Contreras: Marc Liebman Esq.

Moz-Aguilar: John Whipple Esq.

Palencia: Joseph Rubino Esq. and Kelley Sharkey Esq.

Garcia: Charles Alvarez Esq.

Ramirez: Michael Koribanics Esq..

Flores: David Ruhnke Esq. and Linwood Jones Esq.

NEWARK, N.J. – Executive Assistant U.S. Attorney Sabrina G. Comizzoli of the U.S. Attorney’s Office in the District of New Jersey was one of 160 recipients recognized by Deputy Attorney General Sally Yates and Executive Office for U.S. Attorneys (EOUSA) Director Monty Wilkinson at the 32nd annual Director’s Awards Ceremony today in Washington D.C.

The District of New Jersey one of 33 districts represented at the ceremony which was held in the Great Hall at the Robert F. Kennedy Department of Justice Building.

In her prepared remarks, Deputy Attorney General Yates said, “The achievements being recognized today reflect the breadth of the department’s responsibilities, and some of our most significant challenges.   From dismantling dangerous gangs, drug cartels and human trafficking operations to tackling political corruption, white collar crimes, and international terrorism, these awardees have taken on our toughest cases.  And the citizens of our country are safer because of their work.”

“We honor the truly talented and dedicated legal and administrative personnel in the 94 U.S. Attorneys’ offices and our law enforcement partners who everyday touch lives in our communities, protect the American people, and work to ensure the fair and impartial administration of justice,” said Director Wilkinson.

Comizzoli was honored with the Director’s Award for Superior Performance in a Managerial or Supervisory Role.  Since joining the U.S. Attorney’s Office in 2002, Comizzoli served with distinction in the Office’s Appeals Division, Criminal Division, and as Counsel to the U.S. Attorney before becoming the Executive Assistant U.S. Attorney and Chief of Staff to U.S. Attorney Paul J. Fishman in 2013. Comizzoli is being recognized for her contributions to the U.S. Attorney's Office for the District of New Jersey over the past several years.

“I am proud to celebrate this extremely talented member of our staff,” U.S. Attorney Fishman said. “And I’m delighted that the Department of Justice recognizes the important contributions our Office makes to law enforcement nationwide.”

A federal jury convicted eight defendants today of multiple charges related to a racketeering enterprise known as La Mara Salvatrucha, or MS-13, after a 16-week trial.

Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Paul J. Fishman of the District of New Jersey and Special Agent in Charge Timothy Gallagher of the FBI’s Newark, New Jersey, Division made the announcement.

Santos Reyes-Villatoro, aka Mousey, 43, of Bound Brook, New Jersey; Mario Oliva, aka Zorro, 29, of Plainfield, New Jersey; Roberto Contreras, aka Demonio, 27, of Bound Brook; Julian Moz-Aguilar, aka Humilde and Demente, 28, of Plainfield; Hugo Palencia, aka Taliban, 24, of Plainfield; Jose Garcia, aka Chucky and Diabolico, 24, of Plainfield; Cruz Flores, aka Bruja, 30, of Plainfield; and Esau Ramirez, aka Panda, 25, of Plainfield, were convicted in the U.S. District Court for the District of New Jersey.  Reyes-Villatoro, Oliva, Contreras, Moz-Aguilar, Palencia, Ramirez and Garcia were each convicted of one count of racketeering conspiracy; Reyes-Villatoro, Oliva, Palencia and Moz-Aguilar were each convicted of one count of murder in aid of racketeering, one count of using and carrying a firearm during a crime of violence and causing death through use of a firearm; Contreras was convicted of one count of accessory after the fact to murder in aid of racketeering; Garcia was convicted of one count of murder-for-hire conspiracy, one count of travel in interstate commerce with intent to commit murder and two counts of conspiracy to commit murder in aid of racketeering; Flores was convicted of one count of conspiracy to commit murder in aid of racketeering and one count of murder in aid of racketeering; and Ramirez was convicted of one count of conspiracy to commit murder in aid of racketeering. 

Sentencing is scheduled for Sept. 7, 2016, before U.S. District Judge Stanley R. Chesler of the District of New Jersey.

According to evidence presented at trial, MS-13 is a national and transnational gang with branches or “cliques” operating throughout the United States, including in Plainfield.  All of the defendants were members of the Plainfield Locos Salvatrucha (PLS) Clique of MS-13, and Reyes-Villatoro, Oliva and Contreras all served as “First Word,” or leader, of the PLS Clique. 

According to evidence presented at trial, from at least 2007 through September 2013, MS-13 members from the PLS Clique committed five murders in furtherance of MS-13.  On Feb. 9, 2009, Reyes-Villatoro, acting as the leader of the PLS Clique, drove Moz-Aguilar and other MS-13 members through the streets of Plainfield searching for rival gang members, eventually stopping at the Plainfield Train Station.  There, Moz-Aguilar used a firearm previously provided by Reyes-Villatoro to murder a victim who was believed to be a member of the Latin Kings, a rival gang.  On Feb. 27, 2010, Oliva drove a female member of MS-13 to an empty parking lot in Piscataway, New Jersey, and murdered her because she was suspected of working with law enforcement.  Oliva then fled the state of New Jersey with the assistance of Contreras and hid from law enforcement with the MS-13 Pinos Clique in Oxon Hill, Maryland.  On Nov. 11, 2010, Palencia drove another MS-13 member to the area around Barack Obama Academy in Plainfield, where they encountered students challenging MS-13.  Palencia pulled over, handed a firearm to another MS-13 member and instructed him to shoot at one of the individuals.  The MS-13 member shot into the crowd, killing a bystander.  On Jan. 10, 2011, Moz-Aguilar, Roberto Contreras and other MS-13 members were in a car when they spotted a suspected 18th Street gang member in front of a restaurant.  Contreras stopped the vehicle and an MS-13 member exited, approached the suspected rival gang member and shot him in the head.  On May 8, 2011, Flores carried out an MS-13 murder on a victim who was caught socializing with 18th Street gang members.  Flores and another MS-13 member cut the victim’s throat, beat him with a bat and stabbed him in the back 17 times.  An MS-13 member involved in this murder fled New Jersey and was driven to Maryland soon after law enforcement began search for him.  

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

In addition to these convictions, five of the 14 other defendants charged in this investigation have pleaded guilty to their roles in the racketeering conspiracy.  One defendant remains a fugitive.  

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