Category: MIL-OSI

Source: US FBI

NEWARK, N.J. – Pantaleo “Leo” Pellegrini, the former Hoboken Director of Health and Human Services and Director of the Department of Environmental Services, pleaded guilty today before U.S. District Judge Michael E. Farbiarz in Newark federal court to an information charging him with embezzling money from the City of Hoboken and filing a false tax return.

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

While working for the City of Hoboken, Pellegrini embezzled money from the City of Hoboken by diverting payments intended for the City of Hoboken to bank accounts he controlled. Pellegrini also embezzled money from the City of Hoboken by submitting invoices for his personal business expenses, which City of Hoboken unknowingly paid.  Additionally, Pellegrini did not report the embezzled money on his personal tax returns, and thereby made and subscribed a false personal tax return.

Pellegrini had oversight over the City of Hoboken’s Division of Cultural Affairs’ Division of Health; Division of Parks, Recreation & Public Works; Division of Rent Leveling and Stabilization; and Division of Senior Services.  He therefore had oversight responsibilities related to certain public recreational facilities, including soccer fields that could be reserved by both Hoboken and non-Hoboken residents for a fee paid to the City of Hoboken.   Through this arrangement, the City of Hoboken Department of Parks, Recreation & Public Works sponsored a non-profit recreation soccer league open to all Hoboken residents aged 5 to 13 (the “Youth Soccer League”), which was funded by the City of Hoboken and participant fees.  Also during the charged time period, an adult soccer league open to Hoboken and non-Hoboken residents (the “Adult Soccer League”) was in operation, which was funded from participant fees.

Pellegrini developed a scheme to divert the Adult Soccer League’s participant fee payments intended for the City of Hoboken to a business account on which he was a signatory (the “Pellegrini Soccer Business Account”) and which was registered to a soccer-related entity linked to him (the “Pellegrini Soccer Business Entity”).  At various times, Pellegrini told an individual who operated the Adult Soccer League–“Individual-1”—to sign checks for the rental of public recreation facilities but leave the payee blank for Pellegrini to fill in later.  Pellegrini later filled in the name of the Pellegrini Soccer Business Entity and deposited the checks into the Pellegrini Soccer Business Account, without the knowledge of Individual-1.

During the relevant time period, Pellegrini was also the Owner and President of a private travel soccer club that was open to Hoboken residents and non-Hoboken residents (the “Pellegrini Private Soccer Club”).  Pellegrini also submitted or caused the submission to the City of Hoboken invoices associated with the Pellegrini Private Soccer Club, which Pellegrini falsely or fraudulently represented to the City of Hoboken as invoices eligible for reimbursement by the City of Hoboken.  As a result, the City of Hoboken—at Pellegrini’s direction—unknowingly paid tens of thousands of dollars to the Pellegrini Private Soccer Club’s vendors for the Pellegrini Private Soccer Club’s expenses, and also unknowingly paid tens of thousands of dollars directly to Pellegrini through the Pellegrini Private Soccer Club.

Pellegrini intentionally did not disclose and report the income from the above-described embezzlement scheme, thereby causing his tax returns to understate a substantial amount of the income he received.

The count of embezzlement carries a maximum penalty of 10 years in prison and a maximum fine of $250,000 fine, or twice the gross gain to the defendant or loss to the victim, whichever is greatest.  The count of filing a false tax return carries a maximum penalty of three years in prison and a maximum fine of $250,000 fine, or twice the gross gain to the defendant or loss to the victim, whichever is greatest. Sentencing is scheduled for April 29, 2025.

U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Acting Special Agent in Charge Nelson I. Delgado in Newark and special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Jenifer L. Piovesan in Newark, with the investigation leading to the guilty plea.

The government is represented by Assistant U.S. Attorneys Mark J. McCarren and Matthew Specht of the Special Prosecutions Division.
 

Source: US FBI

NEWARK, N.J. – A New York-based businessman admitted his role in a health care fraud and illegal kickback conspiracy, Attorney for the United States Vikas Khanna announced today.

Mansinh Chaudhari, aka “Monsi Koova,” 55, of Illinois, pleaded guilty today before U.S. District Judge Michael E. Farbiarz in Newark federal court to an information charging him with conspiracy to commit health care fraud and conspiracy to violate the Federal Anti-Kickback statute.

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

Chaudhari owned, operated, and had a financial interest in a New York-based consulting company that purchased information associated with prospective Medicare beneficiaries amounting to a guarantee that Medicare would reimburse the purchase of COVID-19 tests. Chaudhari then sold beneficiary information to medical providers in New Jersey, Tennessee, Colorado, Connecticut, Utah, and elsewhere, so the medical providers could use that information to submit or cause the submission to Medicare of claims for up to eight OTC COVID-19 tests per month that beneficiaries did not need and had not ordered.

Chaudhari and the medical providers attempted to conceal their arrangements by entering into sham agreements. He also issued fraudulent invoices to the medical providers that solicited payment for marketing, consulting, or fulfillment. In total, Chaudhari and his conspirators caused a loss to Medicare of more than $5.3 million.

Conspiracy to commit health care fraud is punishable by a maximum of 10 years in prison and conspiracy to violate the Federal Anti-Kickback Statute is punishable by a maximum of five years in prison. Each count is also punishable by a $250,000 fine, or twice the gross gain or loss from the offense, whichever is greatest. Sentencing is scheduled for April 29, 2025.

Attorney for the United States Khanna credited special agents of the FBI, under the direction of Acting Special Agent in Charge Nelson I. Delgado in Newark; the Department of Health and Human Services-Office of Inspector General, under the direction of Acting Special Agent in Charge Naomi Gruchacz; the U.S. Department of Defense, Office of the Inspector General, Defense Criminal Investigative Service, under the direction of Special Agent in Charge Patrick Hegarty; and the U.S. Department of Veterans Affairs Office of Inspector General, under the direction of Special Agent in Charge Christopher F. Algieri with the investigation leading to the guilty plea.

The government is represented by Assistant U.S. Attorney Matthew Specht of the Special Prosecutions Division under the supervision of the Opioid Abuse Prevention and Enforcement Unit.

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Defense counsel: Paul D’Emilia Esq., New York

Source: US FBI

NEWARK, N.J. – A Newark business owner admitted bribing a former city official in exchange for that official’s assistance in acquiring and redeveloping Newark-owned properties, U.S. Attorney Philip R. Sellinger announced.

Frank Valvano, Jr., 57, of Florham Park, New Jersey, pleaded guilty before U.S. District Judge Madeline Cox Arleo in Newark federal court to two counts of an indictment charging him with honest services fraud and bribery.

“As he admitted in court, Frank Valvano, Jr. provided cash, jewelry, and other benefits to a public official in exchange for the official’s use of his influence to further Valvano’s private business interests, defrauding the people of Newark of their right to the official’s honest services. He corrupted the public official’s independent judgment and violated the public trust for his own financial gain. Our office will continue to work with our law enforcement partners to make sure that the people of New Jersey are protected from public officials whose greed overrides their sworn duty to serve the people and from the individuals who bribe those officials.”

U.S. Attorney Philip R. Sellinger

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

Valvano admitted bribing Carmelo Garcia – who served as deputy mayor and director of the Newark Department of Economic and Housing Development (DEHD) and executive vice president and chief real estate officer of the Newark Community Economic Development Corporation (NCEDC) – in exchange for Garcia’s assistance with the acquisition and redevelopment of city-owned property.

From 2017 through April 2019, Valvano, Irwin Sablosky, and others provided significant monetary payments and other benefits to Garcia while he was serving as a high-level Newark official, and prior to that, as an executive officer of the NCEDC (now known as Invest Newark), in exchange for Garcia’s use of his official positions and influence within the city of Newark and the NCEDC to advance real estate development matters of interest to Sablosky and Valvano. These matters included obtaining preliminary designation letters for Sablosky and Valvano and securing Newark-approved redevelopment agreements (RDAs) that allowed them to purchase and acquire various Newark-owned properties for redevelopment, and to ensure that Garcia did not use his influence and authority to act against their interests. In addition to cash, Valvano and Sablosky also gifted Garcia jewelry, including multiple high-end watches and chains, from their pawnbroker and jewelry business. They also paid for Garcia’s expenses on a trip to Miami, Florida.

Phone records and text messages obtained by law enforcement show extensive communication between Garcia, Valvano, Sablosky, and others throughout this period of time, including text messages in which Garcia arranged to personally collect cash provided by  Valvano and Sablosky. In one instance, in June 2018, Valvano and Sablosky, through an intermediary, supplied Garcia, then the city’s acting deputy mayor and director of the city’s DEHD, $25,000 in cash as part of the stream of bribes provided to Garcia.

The Travel Act charge in Count 19 of the indictment carries a maximum potential penalty of 5 years in prison. The bribery charge in Count 26 carries a maximum penalty of 10 years in prison. All charges are punishable by a fine of $250,000 or twice the amount of the pecuniary gain from the offense. Sentencing is scheduled for April 16, 2025.

Valvano originally was charged by indictment in October 2021 with Sablosky, 64, of Springfield, New Jersey, and Garcia, 49, of Hoboken, New Jersey. Garcia previously pleaded guilty to conspiracy to defraud the city of Newark and the NCEDC of Garcia’s honest services, honest services wire fraud, and receiving bribes in connection with the business of a federally funded local government and organization and is awaiting sentencing. Sablosky previously pleaded guilty to conspiracy to honest services wire fraud and bribery and is awaiting sentencing. 

U.S. Attorney Sellinger credited special agents of the FBI’s Newark Field Office, under the direction of Acting Special Agent in Charge Nelson I. Delgado; special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Jenifer I. Piovesan, and special agents of the U.S. Department of Housing and Urban Development, Office of Inspector General, under the direction of Special Agent in Charge Vicky Vazquez, with the investigation leading to today’s plea.

The government is represented by Elaine K. Lou, Deputy Chief of the Criminal Division, and Katherine J. Calle and Edeli Rivera of the U.S. Attorney’s Office’s Special Prosecutions Division.
 

Source: US FBI

TRENTON, N.J. – A leader of the Cape Town Zone of the Neo Black Movement of Africa, also known as “Black Axe,” who was extradited from South Africa to the United States on wire fraud and money laundering charges, had his initial appearance today in Trenton federal court, U.S. Attorney Philip R. Sellinger announced today.

Enorense Izevbigie, aka “Richy Izevbigie,” aka “Lord Samuel S Nujoma,” 49, originally from Nigeria, is charged in a superseding indictment with two counts of wire fraud, wire fraud conspiracy, and money laundering conspiracy, spanning from 2011 to 2021. He had his initial appearance today, before U.S. Magistrate Judge Tonianne J. Bongiovanni in Trenton federal court and was detained pending trial.

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

Izevbigie was a leader of the Neo Black Movement of Africa, also known as “Black Axe,” an organization headquartered in Benin City, Nigeria that operates in various countries. Black Axe is organized into regional chapters known as “zones,” and Izevbigie was a leader within the Cape Town, South Africa, Zone.   

From at least 2011 through 2021, Izevbigie and other conspirators worked together from Cape Town to engage in widespread internet fraud involving romance scams and advance fee schemes. Many of these fraudulent narratives involved claims that an individual was traveling to South Africa for work and needed money or other items of value following a series of unfortunate and unforeseen events, often involving a construction site or problems with a crane. The conspirators used social media websites, online dating websites, and voice over internet protocol phone numbers to find and talk with victims in the United States, while using a number of aliases. 

The conspirators’ romance scam victims believed they were in romantic relationships with the person using the alias and, when requested, the victims sent money and items of value overseas, including to South Africa. Sometimes, when victims expressed hesitation in sending money, the conspirators used manipulative tactics to coerce the payments, including by threatening to distribute personally sensitive photographs of the victim.

The conspirators used the bank accounts of victims and individuals with United States-based financial accounts to transfer the money to South Africa. On certain occasions, the conspirators convinced victims to open financial accounts in the United States that the conspirators would then be permitted to use themselves. In addition to laundering money derived from romance scams and advance fee schemes, the conspirators also worked to launder money from business email compromises. In addition to their aliases, the conspirators used business entities to conceal and disguise the illegal nature of the funds.

The wire fraud conspiracy and wire fraud charges each carry a maximum term of 20 years in prison and a maximum fine of $250,000. The money laundering conspiracy charge carries a maximum term of 20 years in prison and a maximum fine of $500,000 or twice the value of the property involved in the transaction, whichever is greatest.              

Izevbigie, along with six named co-defendants, were arrested in South Africa in 2021.  The six named co-defendants are awaiting extradition to the United States.

Anyone who believes they may be a victim may visit https://www.justice.gov/usao-nj/blackaxe for information about the case, including a questionnaire for victims to fill out and submit.  

U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Acting Special Agent in Charge Nelson I. Delgado in Newark; and the FBI Legal Attaché Office at the United States Embassy in Pretoria, South Africa, under the direction of Legal Attaché John Connell; special agents of the U.S. Secret Service, under the direction of Special Agent in Charge Aaron Hatley in Newark, Resident Agent in Charge Todd Bratz in the Pretoria Resident Office, and Special Agent in Charge William Mancino of the Criminal Investigative Division, with the investigation leading to the charges.

U.S. Attorney Sellinger also thanked officials in South Africa for their assistance including the South African Directorate of Priority Crime Investigations (HAWKS), the South African Police Service, the South African National Prosecuting Authority & Asset Forfeiture Unit, the Department of Justice and Constitutional Development for the Republic of South Africa, and INTERPOL for their assistance in this case. The Justice Department’s Office of International Affairs provided substantial assistance in securing the arrest and extradition of Izevbigie to the United States. 

This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) Priority Transnational Organized Crime (PTOC) investigation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.  

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

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

Source: US FBI

NEWARK, N.J. – Two Brooklyn, New York, men were sentenced to lengthy prison terms today for their roles in three gunpoint robberies of check cashing locations in different parts of New Jersey in 2021 and 2022, as well as conspiring to commit robberies in New Jersey, New York, and Pennsylvania, U.S. Attorney Philip R. Sellinger announced.

Ramel Harris, a/k/a Ramel Harrison, 43, of Brooklyn, and Neville Brown, 40, of Brooklyn, were both sentenced today by U.S. District Judge Claire C. Cecchi in Newark federal court to 186 months in prison.  Both men previously pleaded guilty before Judge Cecchi to three counts of an Indictment charging them with Hobbs Act conspiracy, Hobbs Act robbery, and using, carrying, and brandishing a firearm during and in relation to a crime of violence, namely the Hobbs Act robbery.

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

On several dates between January 2021 and January 2022, two individuals, later identified as Harris and Brown, attempted to rob a check cashing location in Nanuet, New York, and thereafter successfully robbed three check cashing locations in Parsippany, New Jersey, Old Bridge, New Jersey, and Hackettstown, New Jersey while brandishing a firearm and using zip ties to restrain female employees at each location.  During those robberies, Harris and Brown stole approximately $563,566.35.      

During the subsequent investigation, law enforcement learned that the conspirators surveilled check cashing locations in the following locations: Mount Kisco, New York, Allentown, Pennsylvania and West Chester, Pennsylvania.  Law enforcement obtained video surveillance footage that ultimately linked Harris and Brown to the robberies.  Furthermore, historical cell phone records indicate that Harris’s and Brown’s cellular telephones were in or around the locations of the various robberies around the times that they were committed. 

In addition to the prison term, Judge Cecchi sentenced Harris and Brown to five years of supervised release.

U.S. Attorney Sellinger credited members of the FBI’s New Jersey field office, under the direction of Acting Special Agent in Charge Nelson I. Delgado; members of the FBI’s New York field office, under the leadership of Assistant Director In Charge James E. Dennehy; members of the FBI’s Philadelphia field office, under the leadership of Special Agent in Charge Wayne A. Jacobs; members of the Hackettstown Police Department, under the direction of Police Chief Aaron Perkins; members of the Old Bridge Police Department, under the leadership of Chief of Police Thomas J. Montagna; members of the Parsippany-Troy Hills Police Department, under the leadership of Police Chief Richard Pantina; members of the Morris County Prosecutor’s Office, under the leadership of Prosecutor Robert J. Carroll; members of the Clarkstown Police Department, under the leadership of Police Chief Jeffrey Wanamaker; members of the Westchester County (New York) Department of Public Safety; and members of the Borough of West Chester (Pennsylvania) Police Department, with the investigation leading to the charges.

The government is represented by Assistant U.S. Attorney Benjamin Levin, Chief of the General Crimes Unit in Newark.