Tag: Attorney General Gurbir S. Grewal

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Attorney General Gurbir S. Grewal : Jersey City’s decriminalization memorandum was an improper exercise of a municipal prosecutor’s authority

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July 25,2018

the staff of the Ridgewood blog

Jersey City NJ, Yesterday, Attorney General Gurbir S. Grewal and Hudson County Prosecutor Esther Suarez met with officials from Jersey City to discuss last week’s memorandum issued by the city’s Chief Municipal Prosecutor purporting to decriminalize marijuana. During that meeting, the Attorney General made clear that Jersey City’s decriminalization memorandum was an improper exercise of a municipal prosecutor’s authority and reiterated that it was void.

The Attorney General also expressed his concern that Jersey City had acted without consulting state and county law enforcement officials before issuing the memorandum. He was particularly concerned that the rushed issuance of the memorandum – which placed officers in a position of enforcing valid laws that some may mistakenly believe had been rescinded – could undermine the community trust that law enforcement officers in Jersey City and elsewhere have worked so hard to build and could jeopardize officer safety.

At the conclusion of yesterday’s meeting, the Attorney General stated that he wanted to work with criminal justice stakeholders – including County Prosecutor Suarez and the Jersey City Chief Municipal Prosecutor – to clarify the scope and appropriate use of prosecutorial discretion in marijuana-related offenses in municipal court. The Attorney General decided to convene a working group that would study these issues and advise him on a statewide directive that he would issue in August and that would provide clarification about municipal prosecutors’ authority in these cases. He also agreed to ask that municipal prosecutors statewide adjourn all marijuana-related offenses in municipal court until September 4, 2018, in order to provide time to develop the guidance. During yesterday’s meeting, the Attorney General did not commit to the final outcome of the working group or the content of the forthcoming directive. The Attorney General also reiterated that municipal prosecutors do not have the authority to unilaterally decriminalize marijuana-related offenses.

This morning, the Office of the Mayor of Jersey City issued a press release that did not accurately describe yesterday’s meeting and made it appear as if the Attorney General had already agreed to the outcome of the working group and the content of the directive. The Mayor of Jersey City did not participate in yesterday’s meeting and the Attorney General regrets the inaccuracy of the city’s press statements. The Attorney General remains deeply committed to social justice issues and looks forward to working with other criminal justice stakeholders as the state examines over the coming month the appropriate scope of municipal prosecutors’ discretion in marijuana-related cases.

As with all policy initiatives he has spearheaded during his tenure, the Attorney General believes that the best way to develop progressive solutions is through a collaborative approach that involves multiple stakeholders across law enforcement, civil rights organizations, and community leaders. Later this week, the Attorney General will announce the names of those participating in the working group described today.

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Murphy Administration :Joins Lawsuit claiming federal government violated constitution by imposing arbitrary limits on state and local taxes that residents can deduct

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July 19,2018

the staff of the Ridgewood blog

Trenton NJ,  still dreaming, in what can only be described as a “hail mary” ,Attorney General Gurbir S. Grewal today joined three other states in suing the Trump Administration over its $10,000 cap on the federal tax deduction for state and local taxes (SALT).

Joining New Jersey in suing both the Internal Revenue Service and the Treasury Department were New York, Connecticut and Maryland. The lawsuit seeks to prevent the federal government from enforcing the SALT deduction cap, and to have the cap declared invalid.

Governor Phil Murphy welcomed the action.

“What the Trump Administration enacted with the SALT deduction cap was nothing more than a tax hike on our working and middle-class families and seniors,” said Governor Murphy. “I made a commitment to New Jerseyans to provide long-term property tax relief when I signed legislation to preserve deductibility by enabling municipalities to create charitable funds. We will continue to fight to protect local taxpayers and businesses and I applaud Attorney General Grewal and the states of New York, Connecticut and Maryland for their leadership and action in challenging the constitutionality of this assault on our states.”

“Today we are making good on our promise to fight for New Jersey taxpayers – by taking legal action to protect our residents and restore fairness to the tax code,” said Attorney General Grewal. “Simply put, the federal government violated the constitution when it imposed new, arbitrary limits on the amount of state and local taxes that residents could deduct on their federal tax returns.”

In 2017, the Federal Government adopted a significant change to the federal tax code. Previously, taxpayers who itemized their deductions could deduct from their federal tax liability all money paid for state and local income, property and sales taxes. Under the new code, however, the same taxpayers are only permitted to claim a comparatively small deduction of up to $10,000 for those taxes.

The lawsuit filed today notes that the so-called SALT deduction on individual federal tax liability has historically been recognized by Congress as essential under the Constitution. “A SALT deduction has been a part of every federal income tax law since the first federal income tax was enacted in 1861,” the complaint explains.

The lawsuit adds that the SALT deduction is necessary to prevent federal taxes from interfering with each state’s right to determine its taxation and fiscal policies, because federal taxes crowd the states out of traditional revenue sources like income, property and sales taxes.

The suit asserts that the federal government’s “drastic” decision to cap the SALT deduction at $10,000 will significantly increase the federal tax liability for residents of each of the plaintiff states, including New Jersey. Homeowners who could once deduct the full cost of their local property taxes now can only deduct a fraction of those taxes. That will increase the cost of owning a home, which in turn will depress home values.

To make matters worse, the states explain, the federal government went after these states deliberately. Treasury Secretary Steven Mnuchin even said, the point of the changes to the SALT deduction was to “send a message to the[se] state governments” that Washington wants them to change their spending policies. That effort to coerce states, the complaint notes, is another reason why the latest SALT changes are illegal.

Today’s joining of the federal lawsuit by Attorney General Grewal is the Attorney General’s latest action aimed at protecting New Jersey residents from oppressive new federal tax policies under the Trump Administration.

In May, Attorney General Grewal wrote the U.S. Internal Revenue Service (IRS) urging that it stop “playing politics” and drop its plan to enact a rule that would prevent New Jersey residents from claiming deductions for charitable contributions made to their local governments. Governor Phil Murphy had previously signed a law allowing residents to receive property tax credits for such charitable contributions.

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“Safe Summer” 2018 Boardwalk Inspections are Underway

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July 18,2018

the staff of the Ridgewood blog

Seaside Hight’s NJ,  Amid the crowds on the Seaside Heights boardwalk today, Attorney General Gurbir S. Grewal and the Division of Consumer Affairs announced that the annual “Safe Summer” boardwalk compliance efforts are underway along the Jersey Shore and initial inspections have found 12 establishments in two seaside towns that have allegedly violated state consumer protection laws and regulations.

The Safe Summer initiative, designed to promote a family-friendly environment in New Jersey’s coastal communities, is a Division enforcement effort to check boardwalk games for fairness of play, and to ensure they haven’t been modified to the disadvantage of players. Investigators also check stores for compliance with pricing and refund policies.

For many families, a trip to the Jersey Shore isn’t complete without a visit to the boardwalk to enjoy rides and games, and perhaps purchase a souvenir,” said Attorney General Grewal. “We don’t want anyone walking away from what should be an enjoyable trip feeling like they, or worse, their children, were taken advantage of by rigged games or deceptive sales practices.”
“Our investigators comb the boardwalk to ensure a fair and safe experience for the thousands of individuals and families who flock to the Jersey Shore each summer,” said Paul R. Rodríguez, Acting Director of the Division of Consumer Affairs. “Through their efforts, we are making sure that the few stores and amusement game operators who aren’t playing by the rules are held accountable so they don’t spoil the fun for everyone.”
Since Safe Summer 2018 got underway last month, investigators from the Division’s Legalized Games of Chance Control Commission (LGCCC) unit and its Office of Consumer Protection (OCP) have visited boardwalks in Seaside Heights and Atlantic City.

LGCCC investigators inspected a total of 8 arcades and 27 individual amusement games and found 5 locations with alleged violations, including crane machines with prizes too heavy or packed too tightly to be picked up, and a boardwalk game where it was impossible to win the top prize in the number of allotted chances. Investigators wrote up a total of 11 violations that will be presented to the Legalized Games of Chance Control Commission for possible action.

OCP investigators inspected a total of 25 stores and found 7 with alleged violations, including hundreds of items from children’s clothing to shot glasses without clearly marked prices and a shop without a prominently posted refund policy. Citations will be written up and sent out to the alleged violators.
The Safe Summer initiative is a coordinated effort by the Division to blanket a handful of boardwalks with investigators each summer. In addition to inspecting for consumer protection violations, investigators also check for sales of prohibited items, such as novelty lighters, and test toys and prizes for excessive levels of lead. The Division also hands out educational materials to consumers to empower them as their own best advocates against fraud and deceit in the marketplace.

In addition to the Safe Summer sweeps, investigators with LGCCC conduct boardwalk inspections all season long; visiting every one of the state’s 266 amusement game licensees at least once. There are 16 shore resort municipalities in New Jersey with licensed amusement games: Keansburg, Long Branch, Pt. Pleasant, Manasquan, Seaside Park, Seaside Heights, Sea Isle City, Wildwood, North Wildwood, Stone Harbor, Beach Haven, Atlantic City, Brigantine, Beachwood, Toms River, and Cape May.

Since the Safe Summer initiative began in 2014, LGCCC has issued183 citations alleging one or more violations against amusement games licensees. Violations are subject to fines of up to $250.00 for the first offense and up to $500.00 for the second and each subsequent offense. The Commission also has the power to revoke licenses.

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Mail-Order Drug Dealer Gets 21 Years

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July 14,2018

the staff of the Ridgewood blog

Trenton NJ, Attorney General Gurbir S. Grewal today announced a 21-year prison sentence for the leader of a drug network that marketed cocaine and designer drugs online and distributed them through the mail. The defendant was indicted with 11 other alleged ring members and associates in an investigation by the Division of Criminal Justice called “Operation Skin Deep.” He and the two other top members of the ring all pleaded guilty to first-degree charges and received lengthy prison sentences.

Christopher Castelluzzo, 33, of Lake Hopatcong, N.J., was sentenced to 21 years in prison, including nearly 18 years of parole ineligibility, by Superior Court Judge Bernard E. DeLury Jr. in Atlantic County. Castelluzzo, who formed and led the criminal organization, pleaded guilty on May 24 to a first-degree charge of leader of a narcotics trafficking network.

Castelluzzo’s partner, Luke A. Atwell, 37, of Hamilton (Mercer County), N.J., who acted as managing partner of the drug ring, was sentenced on June 14 to 19 years in prison, including 16 years of parole ineligibility. Atwell pleaded guilty on April 27 to a first-degree charge of leader of a narcotics trafficking network. The third top ring member, Aldo T. Lapaix, 31, of Absecon, N.J., was sentenced by Judge DeLury on March 23 to 10 years in prison, including 8 ½ years of parole ineligibility. He pleaded guilty on Aug. 28, 2017 to first-degree charges of racketeering and distribution of cocaine. Lapaix helped procure drugs for the ring and handled the packaging and shipping of drugs.
Deputy Attorney General Jeffrey Barile is prosecuting the defendants and handled the sentencing of Castelluzzo for the Division of Criminal Justice Specialized Crimes Bureau.
Operation Skin Deep began when a detective of the Division of Criminal Justice identified individuals trafficking cocaine while monitoring the activities of white supremacist groups in Atlantic City. The investigation into cocaine sales in Atlantic City ultimately exposed a network that was using the internet to arrange mail-order sales of cocaine and designer drugs, including ethylone, which is known as “M” and is similar to ecstasy.
“The 21-year prison sentence we secured for the leader of this narcotics network demonstrates our resolve to protect the public and make drug traffickers pay for the misery they cause by fueling addiction and violence in our communities,” said Attorney General Grewal. “I commend the detectives and prosecutors who conducted this far-reaching investigation, which started with street-level dealers in Atlantic City and expanded to uncover a multi-million dollar criminal syndicate that used the internet to market its drugs.”

“These defendants tried to stay out of sight by using the internet and the mail to move their drugs, but our prosecutors and detectives exposed them and brought them to justice,” said Director Veronica Allende of the Division of Criminal Justice. “This was a multi-million dollar criminal operation that we dismantled, as evidenced by the nearly $1.5 million seized in the course of the investigation.”
Castelluzzo, Atwell and Lapaix were indicted on March 3, 2016 along with nine other men, including seven other alleged ring members and two alleged associates. Six of those ring members have pleaded guilty and received or face prison sentences ranging from five to 10 years.

Another man charged in the indictment, Jose Ruvalcaba, 30, of Oxnard, Calif., pleaded guilty to conspiracy to commit money laundering and was sentenced to seven years in prison. He is a tractor-trailer driver who was arrested by detectives of the Division of Criminal Justice in a parking lot off Union Turnpike in North Bergen, N.J., along with alleged ring member Shazad Khan, 34, of North Bergen. Detectives found approximately $1.2 million in cash in the trunk of Khan’s Infiniti, wrapped in bundles with duct tape. It was one of the largest cash seizures in New Jersey law enforcement history. Khan allegedly met Ruvalcaba so that Ruvalcaba could transport the cash as payment for cocaine. Khan pleaded guilty in June to first-degree money laundering and faces a sentence of up to 15 years in prison.

Castelluzzo was the primary leader who formed the enterprise. Atwell, as managing partner, was responsible for marketing the enterprise’s drugs on the internet, tracking and managing the gross receipts and expenses, dealing with customers, and keeping an inventory of the remaining drugs. Lapaix helped procure drugs for the ring to sell and handled the packaging and shipping of drugs. Atwell would send computer files to Lapaix containing lists of orders, including screen-names of customers, their addresses, and the amount and type of narcotics that each customer ordered. When Lapaix received the files, he and two men who worked under him would weigh out the drugs, package them, create tracking information, and mail each of the orders. Atwell would ensure all orders were properly filled. Lapaix obtained the supplies for packaging the orders and Atwell reimbursed him. Lapaix also engaged in street-level narcotics sales.

Search warrants executed at various locations yielded approximately a quarter of a million dollars in cash, diamond jewelry, gold bars, another quarter kilogram of cocaine, numerous rounds of ammunition, firearm silencers, cocaine testing, cutting and packaging materials, and related equipment.

Deputy Attorney General Barile is prosecuting the case for the Division of Criminal Justice Specialized Crimes Bureau, under the supervision of Acting Bureau Chief Andrew Johns, Deputy Bureau Chief Jacqueline Smith, and Assistant Attorney General Jill Mayer, Deputy Director of the Division of Criminal Justice. Former Deputy Attorney General Alyssa Schwab and Analyst Bethany Schussler assisted in the investigation for the Specialized Crimes Bureau. Deputy Attorney General Derek Miller and Analyst Debra Maiorano handled the civil forfeiture action.

The lead detectives for the Division of Criminal Justice were Detective Scott Caponi of the Gangs & Organized Crime Bureau and Detective Brian Christensen of the Specialized Crimes Bureau. They were assisted by Sgt. Mike Rasar and worked under the supervision of Deputy Chief of Detectives Christopher Donohue and Lt. Lisa Cawley. They received extensive assistance from detectives of the Gangs & Organized Crime and Specialized Crimes Bureaus, North, South, and Central Units. The New Jersey State Police Intelligence Section also provided valuable assistance. Other partners that were critical to the success of the investigation were the Atlantic City Task Force, Bayonne Police Department, Galloway Police Department, North Bergen Police Department, New York City Police Department, Port Authority of New York & New Jersey and New Jersey National Guard.

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Former Bloomfield Councilman Sentenced to Five Years in Prison for Soliciting $15,000 Bribe from Man Seeking to Sell Property to Township

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July 13,2018

the staff of the Ridgewood blog

Bloomfield NJ, Attorney General Gurbir S. Grewal announced that former Bloomfield Township Councilman Elias N. Chalet was sentenced to state prison today for soliciting and accepting a bribe of $15,000 from a business owner, promising the owner that he would use his position on the council to ensure that the township went ahead with its planned purchase of the man’s commercial property.

Chalet, 55, of Bloomfield, N.J., who formerly was the councilman for Bloomfield’s First Ward, was sentenced today to five years in state prison – including two years of parole ineligibility under New Jersey’s Anti-Corruption Statute – by Superior Court Judge Martin G. Cronin in Essex County. Chalet pleaded guilty on May 9 to a second-degree charge of bribery in official and political matters. He forfeited $15,000 in funds, representing the bribe payments he accepted. He also forfeited his public position and is permanently barred from elected office and public employment in New Jersey. Chalet was arrested on Nov. 16, 2015 and was indicted by a state grand jury in January 2016.
Deputy Attorneys General Brian Faulk and Cynthia Vazquez prosecuted Chalet and handled the sentencing for the Division of Criminal Justice Corruption Bureau. Chalet was charged in an investigation by the New Jersey State Police Official Corruption North Unit and the Division of Criminal Justice Corruption Bureau.

“Corrupt officials like Chalet undermine public trust and good government,” said Attorney General Grewal. “We will not tolerate elected officials who are willing to sell their influence – and sell out their constituents – for an envelope of cash.”
“We are committed to seeking tough sentences for public officials who engage in this type of misconduct,” said Director Veronica Allende of the Division of Criminal Justice. “We urge anyone with information about public corruption to contact us confidentially, as the businessman in this case did, so we can investigate these crimes and aggressively prosecute those responsible.”

“Chalet abused his position by soliciting a bribe and undermining his role as an elected official,” said Colonel Patrick Callahan, Acting Superintendent of the New Jersey State Police. “This prison sentence is a result of the hard work by the State Police Official Corruption North Unit and Division of Criminal Justice Corruption Bureau, and we will continue to work with our partners to ensure trust is maintained with public officials.”

Chalet initially met with the business owner on Oct. 8, 2015 in front of Chalet’s real estate office on Broad Street in Bloomfield. Chalet told the business owner that the township’s planned purchase of his commercial property would go through only if the owner gave Chalet $15,000 in cash. The business owner promptly reported this to the New Jersey State Police, and the state commenced its investigation.

In a subsequent meeting on Oct. 21, 2015 at Chalet’s real estate office, Chalet again discussed that the business owner would pay $15,000 in return for Chalet ensuring and facilitating that the property be purchased by the township. That meeting was recorded. Chalet and the business owner agreed that the business owner would make an initial payment of $10,000 in cash, with the balance of $5,000 to be paid after the township purchased the property. While Chalet initially asked the business owner to pay the cash through a middle man, Chalet ultimately agreed to receive the payments directly.

The bribe payments were made at Chalet’s real estate office. Chalet accepted the first cash payment of $10,000 from the business owner on Oct. 23, 2015. Chalet was arrested on Nov. 16, 2015 at his real estate office after he accepted the remaining $5,000 in cash from the business owner. Those meetings also were recorded. The vote on the purchase of the business property was scheduled for the day Chalet was arrested. He was arrested before the vote.
When the New Jersey State Police moved to arrest Chalet minutes after he accepted the final cash payment of $5,000, Chalet remained locked in his real estate office for approximately 45 minutes, refusing to respond to a detective who repeatedly knocked on the door and a window of the office.

Relatives of Chalet approached detectives at the scene and tried to reach Chalet on his cell phone. They reported that Chalet was in the bathroom. It is believed that Chalet flushed the $5,000 in cash down the toilet to prevent State Police detectives from finding it when they searched his office after his arrest.

Attorney General Grewal commended the detectives and attorneys who investigated and prosecuted the case for the State Police Official Corruption North Unit and the Division of Criminal Justice Corruption Bureau. Former Deputy Attorney General Jane Khodarkovsky presented the case to the state grand jury. Deputy Attorneys General Faulk, Vazquez and Khodarkovsy prosecuted the case under the supervision of Deputy Attorney General Anthony Picione, Chief of the Division of Criminal Justice Corruption Bureau, and Deputy Attorney General Jeffrey Manis, Deputy Bureau Chief.

Attorney General Grewal and Director Allende noted that the Division of Criminal Justice has a toll-free Corruption Tipline 1-866-TIPS-4CJ for the public to report corruption, financial crime and other illegal activities confidentially. The public can also log on to the Division webpage at www.njdcj.org to report suspected wrongdoing confidentially.

The Attorney General’s Office has an Anti-Corruption Reward Program that offers a reward of up to $25,000 for tips from the public leading to a conviction for a crime involving public corruption. Information is posted on the Attorney General’s website at: www.nj.gov/oag/corruption/reward.html.

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“Operation Statewide,”Nabs Ocean County Man With Over 36,000 Files of Child Pornography

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July 12,2018

the staff of the Ridgewood blog

Trenton NJ,  Attorney General Gurbir S. Grewal announced that an Ocean County man who had over 36,000 videos and images of child pornography on his computer devices was sentenced today to state prison. He was one of 40 men arrested in 2016 in “Operation Statewide,” a child pornography sweep by the New Jersey Internet Crimes Against Children Task Force, which includes the New Jersey State Police, Division of Criminal Justice, U.S. Homeland Security Investigations, and numerous state, county and local law enforcement agencies.
Anthony White, 31, of Lakewood, N.J., was sentenced today to six years in state prison, including three years of parole ineligibility, by Superior Court Judge Linda Baxter in Ocean County. He pleaded guilty on March 6 to second-degree charges of distributing child pornography and attempting to manufacture child pornography. He will be required to register as a sex offender under Megan’s Law and will be subject to parole supervision for life.
Deputy Attorney General Rachael Weeks prosecuted White and handled the sentencing for the Division of Criminal Justice Financial & Computer Crimes Bureau.

In pleading guilty, White admitted that he knowingly used file-sharing software to make 25 or more files of child pornography readily available for any other user to download from a “shared folder” on his computer. He further admitted in connection with the attempted manufacturing charge that he tried to reproduce images of child pornography that he previously downloaded. While monitoring a peer-to-peer file-sharing network popular with sex offenders, a detective of the New Jersey State Police Digital Technology Investigations Unit (DTIU) downloaded 38 videos and images of child pornography from a shared folder at a computer IP address later traced to White. White was arrested on July 20, 2016, when members of the DTIU and State Police TEAMS Unit executed a search warrant at his home and seized computer devices, including a desktop computer. A forensic preview of the devices revealed over 36,000 videos and images of child pornography, one of the largest collections of child pornography ever seized by law enforcement in New Jersey.

“We are working hard through our proactive online investigations to banish the offensive notion that viewing child pornography is somehow a victimless crime,” said Attorney General Grewal. “Tens of thousands of children were cruelly abused to create the videos and images in White’s collection, and he exploited and re-victimized those children by his actions.”

“By sending defendants like White to prison, we deliver the message that possessing and distributing child pornography are very serious crimes – crimes that create a market for the terrible abuse of innocent children,” said Director Veronica Allende of the Division of Criminal Justice. “This prison sentence reflects our determination to prosecute these offenders aggressively using New Jersey’s tough child pornography laws.”
“People like Anthony White care more about getting caught than they do about the innocent children who are subjected to the horrific abuses portrayed in the videos they willingly share on the internet,” said Colonel Patrick Callahan of the New Jersey State Police. “As a result of the great work by our troopers and law enforcement partners, White will remain under parole supervision for life after he serves his prison sentence.”

Operation Statewide was a 2016 multi-agency child pornography sweep coordinated by the New Jersey State Police, as lead agency for the New Jersey Internet Crimes Against Children (ICAC) Task Force. The operation resulted in arrests of 40 men, including defendants in every county of New Jersey. During the operation, investigators monitored Peer to Peer, or P2P, file-sharing networks popular with child pornography offenders. Such networks play a major role in the distribution of child pornography, functioning in the same manner as websites used for privately sharing music or movies. Because videos and photos of child pornography keep recirculating, they result in the perpetual re-victimization of the children who were sexually assaulted or abused to produce them. Law enforcement has cataloged a large number of these images and videos, and the electronic files can be traced in various ways. During Operation Statewide, detectives downloaded child pornography that defendants offered from shared folders on their computers, tracing the files to their point of origin.
Attorney General Grewal commended the detectives of the New Jersey State Police DTIU and members of the other agencies in the New Jersey ICAC Task Force who conducted Operation Statewide, as well as the attorneys who participated in the investigations and are prosecuting the resulting cases.

Attorney General Grewal and Director Allende urged anyone with information about distribution of child pornography on the internet – or about suspected improper contact by unknown persons communicating with children via the internet or possible exploitation or sexual abuse of children – to please contact the New Jersey Internet Crimes Against Children Task Force Tipline at 888-648-6007.

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Florida Man Charged with Assuming Identity of NJ Doctor in $1 Million Insurance Fraud Scheme

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July 12,2018

the staff of the Ridgewood blog

Trenton NJ, Attorney General Gurbir S. Grewal and the Office of the Insurance Fraud Prosecutor announced that a Florida man was charged today with assuming the identity of a New Jersey doctor to submit more than $1 million in fraudulent medical claims for medical services purportedly rendered at a Morris County medical center that, in reality, did not exist.

Yoandi Marrero, 33, of Hialeah, Florida, and PA Clinical Center, Inc., the registered company he allegedly used to front the phantom medical practice, were charged with insurance fraud and attempted theft by deception (2nd degree); theft by deception (3rd degree); and identity theft (4th degree) in an indictment handed up by a state Grand Jury in Trenton today. Marrero was also charged with fourth degree identity theft in the alleged scheme.
Marrero allegedly used the personal information of a Hudson County family physician to submit fraudulent insurance claims to United Healthcare Insurance Company (“United Healthcare”) for a variety of physical therapy and medical services – including x-rays, ultrasound therapy, and electrical stimulation – purportedly provided to more than a dozen patients at PA Clinical Center located in medical suite on Bloomfield Avenue in Denville.
According to prosecutors, neither the doctor, nor the patients who allegedly received the treatments had ever been to the PA Clinical Center; and they had no idea how Marrero got their personal information. In reality, the address listed for PA Clinical Center is the site of an unoccupied storage unit.

“Insurance fraud is a reprehensible crime but it’s even worse when criminals cloak themselves in the identities of unsuspecting, law-abiding citizens to commit their illegal acts, as this defendant allegedly did,” said Attorney General Grewal. “We will vigorously investigate and prosecute anyone who blatantly exploits the privacy of others in order to steal benefits from insurance providers.”
As a result of Marrero’s alleged scheme, he received more than $46,000 in payments from United Healthcare.

The scheme was uncovered when a United Healthcare member claimed a doctor had billed her insurance for services that were never rendered. A review of billing records for the doctor and PA Clinical Center led investigators to Marrero, who is listed with the NJ Department of Treasury as PA Clinical’ s registered agent.

“It’s astounding that anyone would think they could get away with this kind of wholesale corruption of the insurance system,” said Acting Insurance Fraud Prosecutor Tracy M. Thompson. “Nothing about these claims for medical services was legitimate; not the doctor who allegedly performed them; not the patients who allegedly received them, not even the facility in which they were allegedly performed. As this case demonstrates, we will vigorously investigate these phantom claims all the way back to their illegal sources to bring the perpetrators to justice.”

Second-degree crimes carry a sentence of five to ten years in state prison and a fine of up to $15,000, while third-degree crimes carry a sentence of three to five years in state prison and a fine of up to $15,000, and fourth-degree crimes carry a sentence of up to eighteen months in state prison and a criminal fine of up to $5,000. The indictment is merely an accusation and the defendant is presumed innocent until proven guilty.
Deputy Attorney General Charles Wright presented the case to the grand jury.

Acting Insurance Fraud Prosecutor Thompson noted that some important cases have started with anonymous tips. People who are concerned about insurance cheating and have information about a fraud can report it anonymously by calling the toll-free hotline at 1-877-55-FRAUD, or visiting the Web site at www.njinsurancefraud.org. State regulations permit a reward to be paid to an eligible person who provides information that leads to an arrest, prosecution and conviction for insurance fraud.

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New Jersey Bureau of Securities Revokes Registrations of Investment Advisory Firm and Its Owner for Defrauding Elderly New Jersey Investors

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June 16,2018

the staff of the Ridgewood blog

Trenton NJ, Attorney General Gurbir S. Grewal and the Division of Consumer Affairs announced that the Bureau of Securities (“the Bureau”) today revoked the registrations of a Morris County investment advisory firm and its owner, and assessed them $500,000 in civil penalties for fraudulently selling at least $6.1 million in unregistered securities to elderly and retired New Jersey investors.
Richard Belott, the managing member and investment adviser representative of Financial Planning Advisors, LLC (“FPA”), sold unregistered securities to at least eight investors, including elderly and retired clients of FPA, then used at least $1.55 million of investors’ funds on personal expenses, including his daughter’s college tuition, extravagant trips for himself and his wife, and mortgage payments on the couple’s beach house.
The Bureau’s action comes on World Elder Abuse Awareness Day, a day when individuals and organizations from around the globe participate in activities and events to raise awareness about the physical, emotional, and financial abuse of elders.

“Preventing the financial exploitation of seniors is a top priority for New Jersey’s Bureau of Securities, not just on World Elder Abuse Awareness Day, but every day,” Attorney General Gurbir S. Grewal. “The enforcement action announced by the Bureau today underscores our ongoing efforts to protect elder investors from financial predators in the securities market.”
In a Summary Penalty and Revocation Order issued today, Bureau Chief Christopher Gerold found that between 2008 and 2015, Belott and FPA offered and sold at least 24 promissory notes purportedly issued by local diners and a developer. Belott represented to investors that their funds were investments in those businesses.

In reality, instead of receiving promissory notes from the diners or developer, investors received personal promissory notes from the owners of those businesses, who had
undisclosed business relationships with Belott. In at least one instance, the promissory note was issued by Belott.

The promissory notes had a term of one year or more with stated interest rates ranging from 5 percent to 18 percent annually. Interest and principal payments to the promissory note investors were paid from the bank accounts of various entities, including the diners, developer and FPA, Gerold found.

In offering and selling the promissory notes, Belott failed to disclose to investors that: the diners and developer purportedly issuing the promissory notes were clients of his accounting firm, that he had outside business relationships with the owners of the businesses, or that he was a co-owner of some of the diners. Belott also failed to disclose that he received a commission on the sale of certain promissory notes he sold, or that he would use the investors’ funds for his personal benefit.

“Elderly clients of FPA trusted Belott, as their financial advisor, to guide them in making wise investments. Instead, he lured them into a fraudulent investment scheme to enrich himself,” said Paul Rodríguez, Acting Director of Division of Consumer Affairs. “These investors, some of whom risked their entire retirement savings on Belott’s scheme, had no idea that he was using their funds to subsidize his lavish lifestyle.”
As set forth in the Summary Penalty and Revocation Order, Bureau Chief Gerold found that:

Belott and FPA violated New Jersey’s Uniform Securities Law through the following activities, among others:
offering and selling unregistered securities;
engaging in fraud or deceit upon FPA’s advisory clients and others;
engaging in dishonest and unethical practices in the investment advisory business; and
failing to maintain written investment advisory contracts.
Belott violated New Jersey’s Uniform Securities Law by:
acting as an agent without registration;
making untrue statements of material fact and/or omitting to state material facts; and
making false and misleading statements to Bureau investigators during an investigative deposition.
FPA violated New Jersey’s Uniform Securities Law by:
failing to make and keep required books and records;
failing to maintain minimum capital or the required bond while having custody of clients’ funds.

The Bureau’s action was handled by Deputy Bureau Chief Amy Kopleton, Director of Examinations Stephen Bouchard, and Investigator Theresa Hendricks, within the Division of Consumer Affairs.
Deputy Attorney General and Section Chief Victoria Manning and Deputy Attorney General Katherine A. Gregory of the Securities Fraud Prosecution Section in the Division of Law represented the Bureau in this matter.
More information for both elderly investors and their caregivers can be found on the Bureau’s website at www.njconsumeraffairs.gov/bos/Pages/investormaterials.aspx or at www.ServeOurSeniors.org.
The Bureau is charged with protecting investors from investment fraud and regulating the securities industry in New Jersey. It is critical that investors “Check Before You Invest.” Investors can obtain information, including the registration status and disciplinary history, of any financial professional doing business to or from New Jersey, by contacting the Bureau toll-free within New Jersey at 1-866-I-INVEST (1-866-446-8378) or from outside New Jersey at 973-504-3600, or by visiting the Bureau’s website at www.NJSecurities.gov.

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New Jersey Mail Order Drug Dealer Gets 19 years

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June 16,2018

the staff of the Ridgewood blog

Lake Hopatcong, N.J Attorney General Gurbir S. Grewal announced that a Mercer County man was sentenced to a lengthy prison term today for running a drug network that marketed cocaine and designer drugs online and distributed them through the mail. He was charged along with 11 other alleged ring members and associates in an investigation by the Division of Criminal Justice called “Operation Skin Deep.” He and the two other top members of the ring have all pleaded guilty to first-degree charges.

Luke A. Atwell, 37, of Hamilton (Mercer County), N.J., was sentenced today to 19 years in state prison, including 16 years of parole ineligibility, by Superior Court Judge Bernard E. DeLury Jr. in Atlantic County. He pleaded guilty on April 27 to a first-degree charge of leader of a narcotics trafficking network. Atwell acted as managing partner of the drug ring.
Atwell’s partner, Christopher Castelluzzo, 33, of Lake Hopatcong, N.J., who formed the enterprise, also pleaded guilty to a first-degree charge of leader of a narcotics trafficking network on May 24. He faces a recommended sentence of 21 years in prison, with 18 years of parole ineligibility. He is scheduled to be sentenced on June 21. The third top ring member, Aldo T. Lapaix, 31, of Absecon, N.J., was sentenced by Judge DeLury on March 23 to 10 years in prison, including 8 ½ years of parole ineligibility. He pleaded guilty on Aug. 28, 2017 to first-degree charges of racketeering and distribution of cocaine. Lapaix helped procure drugs for the ring and handled the packaging and shipping of drugs.

Deputy Attorney General Jeffrey Barile is prosecuting the defendants and handled the sentencing of Atwell for the Division of Criminal Justice Specialized Crimes Bureau.
Operation Skin Deep began when a detective of the Division of Criminal Justice identified individuals trafficking cocaine while monitoring the activities of white supremacist groups in Atlantic City. The investigation into cocaine sales in Atlantic City ultimately exposed a network that was using the internet to arrange mail-order sales of cocaine and designer drugs, including ethylone, which is known as “M” and is similar to ecstasy.
“This sentence sends a loud and clear message to narcotics traffickers that if you choose to profit by spreading addiction in New Jersey and fueling street-level crime with your drugs, we will come after you and you will face hard time,” said Attorney General Grewal. “I commend the detectives and prosecutors who pursued all the leads to bring these defendants to justice, beginning with drug sales in parking lots and back rooms in Atlantic City and ultimately exposing a statewide drug network that relied on the internet and mail delivery to distribute its corrosive wares.”

“Atwell and his partners were making millions of dollars using their unconventional business model for dealing drugs,” said Director Veronica Allende of the Division of Criminal Justice. “We have put them out of business and ensured with these prison sentences that they won’t be operating any illicit enterprises for many years to come.”

Atwell, Castelluzzo and Lapaix were indicted on March 3, 2016 along with nine other men, including seven other alleged ring members and two alleged associates. Six of those ring members have pleaded guilty and received or face prison sentences ranging from five to 10 years.

Another man charged in the indictment, Jose Ruvalcaba, 30, of Oxnard, Calif., pleaded guilty to conspiracy to commit money laundering and was sentenced to seven years in prison. He is a tractor-trailer driver who was arrested by detectives of the Division of Criminal Justice in a parking lot off Union Turnpike in North Bergen, N.J., along with alleged ring member Shazad Khan, 34, of North Bergen. Detectives found approximately $1.2 million in cash in the trunk of Khan’s Infiniti, wrapped in bundles with duct tape. It was one of the largest cash seizures in New Jersey law enforcement history. Khan allegedly met Ruvalcaba so that Ruvalcaba could transport the cash as payment for cocaine.

Castelluzzo was the primary leader who formed the enterprise. Atwell, as managing partner, was responsible for marketing the enterprise’s drugs on the internet, tracking and managing the gross receipts and expenses, dealing with customers, and keeping an inventory of the remaining drugs. Lapaix helped procure drugs for the ring to sell and handled the packaging and shipping of drugs. Atwell would send computer files to Lapaix containing lists of orders, including screen-names of customers, their addresses, and the amount and type of narcotics that each customer ordered. When Lapaix received the files, he and two men who worked under him would weigh out the drugs, package them, create tracking information, and mail each of the orders. Atwell would ensure all orders were properly filled. Lapaix obtained the supplies for packaging the orders and Atwell reimbursed him. Lapaix also engaged in street-level narcotics sales.

Search warrants executed at various locations yielded approximately a quarter of a million dollars in cash, diamond jewelry, gold bars, another quarter kilogram of cocaine, numerous rounds of ammunition, firearm silencers, cocaine testing, cutting and packaging materials, and related equipment.

Deputy Attorney General Barile is prosecuting the case for the Division of Criminal Justice Specialized Crimes Bureau, under the supervision of Acting Bureau Chief Andrew Johns, Deputy Bureau Chief Jacqueline Smith, and Assistant Attorney General Jill Mayer, Deputy Director of the Division of Criminal Justice. Former Deputy Attorney General Alyssa Schwab and Analyst Bethany Schussler assisted in the investigation for the Specialized Crimes Bureau. Deputy Attorney General Derek Miller and Analyst Debra Maiorano handled the civil forfeiture action.

The lead detectives for the Division of Criminal Justice were Detective Scott Caponi of the Gangs & Organized Crime Bureau and Detective Brian Christensen of the Specialized Crimes Bureau. They were assisted by Sgt. Mike Rasar and worked under the supervision of Deputy Chief of Detectives Christopher Donohue and Lt. Lisa Cawley. They received extensive assistance from detectives of the Gangs & Organized Crime and Specialized Crimes Bureaus, North, South, and Central Units. The New Jersey State Police Intelligence Section also provided valuable assistance. Other partners that were critical to the success of the investigation were the Atlantic City Task Force, Bayonne Police Department, Galloway Police Department, North Bergen Police Department, New York City Police Department, Port Authority of New York & New Jersey and New Jersey National Guard.

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“Operation Pitfall” Nabs Seventeen Indictments for Allegedly Conspiring to Distribute Heroin in Paterson

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June 8,2018

the staff of the Ridgewood blog

Paterson NJ, Attorney General Gurbir S. Grewal today announced a state grand jury indictment charging the alleged leader and 16 other alleged members of a narcotics network linked to the Bloods street gang that was distributing large amounts of heroin in Paterson. Seventeen more individuals are charged with possession of narcotics, including 16 who allegedly purchased heroin from the ring, bringing the total number of defendants indicted to 34.
The indictment, handed up yesterday, stems from “Operation Pitfall,” a collaborative investigation led by the New Jersey State Police Gangs & Organized Crime North Unit, the Division of Criminal Justice, the State Parole Board, the Newark Police Department, and ICE Homeland Security Investigations, with assistance from the Paterson Police Department, Morris County Sheriff’s Office, Passaic County Prosecutor’s Office, Bergen County Prosecutor’s Office, Prospect Park Police, Wallington Police, Elmwood Park Police, Passaic County Sheriff’s Office, Wayne Police, and Clifton Police.

The investigation targeted a drug trafficking organization operating in a section of the 4th Ward of Paterson known as the four corners or “4K” area, referring to the intersections of Mercer Street and Putnam Street, Rosa Parks Boulevard and Putnam Street, Mercer Street and Warren Street, and Rosa Parks Boulevard and Warren Street. The area has a history of open air drug dealing and gun violence. The drug network was led by a local set of the Bloods street gang known as the “4K Bloods” or “Korner Boyz.” The cooperating agencies arrested most of the defendants in November, including the alleged ringleader, Jaumel Reese, 35, of Passaic, N.J., and one of his alleged bulk suppliers, Jesse Garcia, 27, of Lodi, N.J. Reese and many of the other defendants are allegedly members of the 4K Bloods.

The Division of Criminal Justice Gangs & Organized Crime Bureau yesterday obtained a 63-count state grand jury indictment charging all 17 alleged ring members with second-degree conspiracy to distribute heroin. Reese is also charged with first-degree promoting organized street crime, and Eric Huntington, 41, of Paterson, who allegedly was one of Reese’s top “runners” or suppliers to street-level dealers, is charged with first-degree distribution of heroin. During the takedown of the ring, authorities executed a search warrant at the home of Garcia, where they seized 90 bricks of heroin (each including about 50 “bags” or doses), a handgun, hollow-nose bullets, and over $19,000. Garcia is charged with additional second-degree drug and gun offenses, as well as third-degree money laundering. A total of three guns were seized during the investigation. The other ring members face various additional second- and third-degree drug charges, and the 16 alleged buyers face third-degree heroin possession charges.

“We are collaborating in investigations like Operation Pitfall to target the drug traffickers who are fueling the deadly opioid epidemic and bringing violence to the neighborhoods of our cities,” said Attorney General Grewal. “This investigation really took aim at the heart of the problem, because Paterson is a major hub for heroin distribution across northern New Jersey and the open-air drug markets allegedly controlled by this Bloods set in the city’s 4th Ward have a history of gun violence.”

“This investigation is a great example of all levels of law enforcement working together seamlessly to dismantle a significant narcotics network,” said Director Veronica Allende of the Division of Criminal Justice. “There can be little doubt that we saved lives by stopping the heroin trafficked by these gang members from reaching people struggling with addiction in Paterson and the surrounding region.”
“When heroin dealing is introduced into a community, gun violence is not far behind, and if you add dangerous street gangs to the equation, the effect on a city’s residents can be devastating,” said Colonel Patrick Callahan of the New Jersey State Police. “I want to commend the State Police personnel and our law enforcement partners who ultimately dismantled this drug distribution network and made the streets safer for the residents of Paterson.”
Deputy Attorney General Amy Sieminski presented the case to the state grand jury for the Division of Criminal Justice Gangs & Organized Crime Bureau, under the supervision of Deputy Bureau Chief Annmarie Taggart and Bureau Chief Lauren Scarpa Yfantis. Attorney General Grewal commended the prosecutors in the Division of Criminal Justice, the detectives in the New Jersey State Police Gangs and Organized Crime North Unit, including the lead detective, Detective Scott Sanders, and all of the detectives, officers and special agents who investigated for the other participating agencies.
The following is a full list of the defendants charged with second-degree conspiracy as alleged ring members:
Jaumel Reese, 35, of Passaic, N.J.
Jessie Garcia, 27, of Lodi, N.J.
Eric Huntington, 41, of Paterson, N.J.
Jerome Deas, 38, of Paterson, N.J.
Marvelous Pitts, 31, of Paterson, N.J.
Shaques Huntington, 24, Paterson, N.J.
Herbert Pitts, 60, of Paterson, N.J.
Justin Jones, 24, of Paterson, N.J.
Angela Whitehead, 32, of Prospect Park, N.J.
Jeffrey Hunter, 29, of Paterson, N.J.
Markeith Davis, 48, of Paterson, N.J.
Tariq Jackson, 25, of Paterson, N.J.
Devon Armstrong, 40, of Paterson, N.J.
Jonathan Cedeno, 22, of Paterson, N.J.
Isaac Coleman, 32, of Paterson, N.J.
Hanife Dock, 29, of Paterson, N.J.
Theodore Blackshear, 46, of Paterson, N.J.
The following is a list of the remaining 17 defendants. All are charged with third-degree possession of heroin, with the exception of Winter Burch. Burch, who is a girlfriend of Reese, is charged with third-degree possession of codeine and fourth-degree possession of false government documents.
Jasmine Soto, 28, of Milford, Pa.
Christopher Gutierrez, 34, of Milford, Pa.
Daniel Grimm, 67, of Franklin, N.J.
Nicholas McLaughlin, 26, of Greeley, Pa.
Christopher Holbert, 24, of Hawley, Pa.
Brent Howell, 33, of Blairstown, N.J.
Frank Marchionni, 26, of Nanuet, N.Y.
Jonathon Kleinberg, 29, of New City, N.Y.
Michael Armao, 33, of Greenwood Lake, N.Y.
Michael Sheridan, 42, of Johnson, N.Y.
Robert Ferri, 33, of Wyckoff, N.J.
Chelsea Rouse, 34, of East Stroudsburg, Pa.
Jennifer Halterman, 33, of East Stroudsburg, Pa.
David Boralsky, 35, of Stanhope, N.J.
Michael Ryerson, 48, of Paterson, N.J.
Carl McKenith, 65, of Englewood, N.J.
Winter Burch, 36, of Passaic, N.J.
Jaumel Reese, Jessie Garcia, Eric Huntington and Jerome Deas are being detained in jail pre-trial. They were charged in a prior indictment in March that has been superseded by this new indictment.
First-degree charges carry a sentence of 10 to 20 years in state prison and a fine of up to $200,000, while second-degree charges carry a sentence of five to 10 years in prison and a fine of up to $150,000. A sentence for first-degree promoting organized street crime must be served consecutively to the sentence for any underlying offense. The first-degree heroin distribution charge carries an enhanced fine of up to $500,000. Reese is charged with employing a juvenile in a drug distribution scheme, a second-degree charge which also carries an enhanced fine of up to $500,000. The second-degree charges of certain persons not to possess a weapon carry a mandatory term of parole ineligibility of five years. The third-degree drug charges carry a sentence of three to five years in state prison and a fine of up to $35,000.
The indictment is merely an accusation and the defendants are presumed innocent until proven guilty.

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Paramus Neurologist Faces New Charges Alleging He Fraudulently Billed Insurance Companies for $682,000 in Statewide Medical Kickback Scheme

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June 3,2018

the staff of the Ridgewood blog

Paramus NJ,  Attorney General Gurbir S. Grewal and the Office of the Insurance Fraud Prosecutor announced today that a Bergen County neurologist indicted last year on third-degree charges in connection with a statewide medical kickback scheme now faces additional charges of health care claims fraud, misconduct by a corporate official, and other second-degree offenses, as the result of a newly returned superseding indictment.
The superseding indictment alleges Dr. Terry Ramnanan, 65, who operates the Interventional Spine and Pain Treatment Center facility in Paramus, used his medical facility to fraudulently bill insurance carriers for more than 637 medical procedures totaling $682,000 related to patients involved in the kickback scheme. The 10-count superseding indictment was handed up to Superior Court Judge Peter E. Warshaw in Mercer County yesterday.
“The deeper our investigators dig, the more dirt they uncover on doctors who conspired to buy and sell patients for profit in this statewide kickback scheme,” said Attorney General Grewal. “Upon further information and review, additional, upgraded charges against Dr. Ramnanan are appropriate, given his alleged role in this conspiracy to corrupt New Jersey’s health care industry.”

Ramnanan, who lives in Upper Saddle River, is one of dozens of health care practitioners charged in connection with an ongoing investigation by the Attorney General’s Commercial Bribery Task Force (CBTF) that was formed in January 2016 to target commercial bribery in the health care industry. The task force includes deputy attorneys general and detectives from the Office of Insurance Fraud Prosecutor and the Division of Criminal Justice Financial & Computer Crimes Bureau.

The CBTF investigation has uncovered a statewide criminal enterprise in which doctors received hundreds of thousands of dollars in illegal kickbacks in return for providing patient referrals worth millions of dollars to other doctors and medical service providers.

In August 2017, Ramnanan was indicted on one charge each of third-degree conspiracy, commercial bribery, and criminal use of runners for allegedly paying Totowa chiropractor Ronald Hayek in exchange for patient referrals.
Ramnanan is now accused of bribing another health care professional, identified only by the initials A.A, for patient referrals and then fraudulently submitting insurance claims for medical treatment performed on those patients.
“Dr. Ramnanan’s alleged crimes are greater in number and more serious in nature than we originally believed. The charges contained in the superseding indictment reflect the true nature of his involvement in this scheme,” said Acting Insurance Fraud Prosecutor Tracy M. Thompson. “Our Commercial Bribery Task Force will continue to run down tips and follow leads to ensure that all those involved in this criminal enterprise are held fully accountable for their actions.”

In addition to the previous charges against Ramnanan, the superseding indictment contains additional charges of:
Misconduct by a Corporate Official (2nd degree)
Health Care Claims Fraud (two counts, 2nd degree)
Theft by Deception (2nd degree)
Commercial Bribery (3rd degree)
Criminal Use of Runners (3rd degree)
It also upgrades the previous count of Conspiracy from 3rd degree to 2nd degree.
The charges are merely accusations and the defendant is presumed innocent until proven guilty. Second-degree crimes carry a sentence of five to 10 years in state prison and a fine of up to $150,000, while third-degree crimes carry a sentence of three to five years in state prison and a fine of up to $15,000.

According to the superseding indictment, between January 2012 and April 2016, Ramnanan conspired with both “A.A.” and Hayek in a kickback scheme in which Ramnanan paid them for referring patients for treatment at his medical facility.Hayek was among dozens of doctors charged in two prior medical fraud investigations that led to the formation of the Commercial Bribery Task Force:
An investigation by the Division of Criminal Justice Financial & Computer Crimes Bureau that led to guilty pleas in 2016 from Dr. Manoj Patharkar and his associate Mohammed Shamshair on charges that they hid and laundered approximately $3.6 million in income from the doctor’s pain management clinics to evade taxes, and “Operation Rayscam,” an investigation by the Office of the Insurance Fraud Prosecutor that led to guilty pleas in May 2015 from Rehan Zuberi, his wife, and three other defendants in connection with commercial bribes that Zuberi paid to doctors in return for the referral of patients to his medical imaging centers.

In July 2016, Hayek pleaded guilty to two accusations. The first accusation, filed by the Division of Criminal Justice Financial & Computer Crimes Bureau, charged him with second-degree conspiracy, second-degree money laundering, six counts of commercial bribery, (four in the second degree, two in the third degree), and one count of third degree failure to pay taxes. The second accusation, filed by the Office of Insurance Fraud Prosecutor, charged him with one count of third-degree conspiracy. He is awaiting sentencing.

In pleading guilty to the accusation filed by the Division of Criminal Justice, Hayek admitted he accepted tens of thousands of dollars in kickbacks from Shamshair, Patharkar, Ramnanan, and others, in exchange for referring patients to them and their related medical facilities. He also admitted paying commercial bribes to attorneys in exchange for the referral of clients to his practice. In pleading guilty to the accusation filed by the Office of Insurance Fraud Prosecutor, Hayek admitted to receiving kickbacks in exchange for referring patients to diagnostic imaging facilities owned or controlled by Rehan Zuberi.

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BERGEN COUNTY PROSECUTOR’S OFFICE AND NEW JERSEY STATE POLICE CREATE COLD CASE HOMICIDE UNIT AND IDENTIFY SUSPECT IN 1999 ENGLEWOOD, HOMICIDE

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June 2,2018

the staff of the Ridgewood blog

Hackensack NJ, Acting Bergen County Prosecutor Dennis Calo and Attorney General Gurbir S. Grewal announced today the creation of a Cold Case Homicide Unit (“the Unit”) within the Bergen County Prosecutor’s Office (“BCPO”) and the charging of a defendant in a 1999 cold case. The Unit is a joint effort between the BCPO under the direction of Chief Robert Anzilotti and the New Jersey State Police (“NJSP”) under the direction of Colonel Patrick J. Callahan, and is dedicated exclusively to the review of cold case homicides in Bergen County.

The Cold Case Homicide Unit is currently reviewing more than 90 cold cases dating back the 1950’s. The Unit resides within the BCPO Major Crimes Unit and consists of one Prosecutor’s Office Detective Sergeant, an on-loan Detective from the New Jersey State Police Major Crimes Unit, and a dedicated Senior Assistant Prosecutor.
In March 2018, as the result of the resubmission of evidence to the NJSP Office of Forensic Sciences and advancements in forensic technology, the Unit developed a suspect in the 1999 homicide of Hyo J. Lee (DOB: 10/17/65; employed at a nail salon). Ms. Lee left her home at 37 North Dean Street in Englewood just after midnight on Sunday, July 4, 1999 to go for a walk. She was sexually assaulted and murdered, and her body was found later that morning behind a dumpster in Englewood.

Upon review of the case file, members of the Cold Case Unit resubmitted evidence to the NJSP Office of Forensic Sciences in Hamilton, NJ, which was able to create a DNA profile of the killer. That newly developed DNA profile was uploaded to a national DNA database, and JOSE COLON, a.k.a., Luis Chavez, was identified. COLON had been arrested in Cleveland, Ohio in 1999 for a similar crime but in which the victim survived.
Jose COLON has been charged for the Englewood homicide with Murder and Sexual Assault and entered into a nationwide law enforcement database as a Fugitive from Justice. COLON was deported from the United States in 2005 to his native Nicaragua after serving time in Ohio State Prison for the 1999 Cleveland assault. The Unit is working with federal authorities and the United States Department of Justice to locate COLON and extradite him to the United States to stand trial for the murder.

“When a crime goes unsolved – especially a serious crime like murder or rape – justice is denied, victims and survivors lack closure, and a dangerous criminal may be left free to victimize others,” said Attorney General Grewal. “Beyond that, society is harmed, because our faith in justice and our sense of security under the rule of law are shaken. As New Jersey’s top law enforcement officer, pursuing justice for all is my top priority, and this new cold case unit is an outstanding example of law enforcement diligently pursuing justice.”

Acting Prosecutor Calo stated, “This Cold Case Homicide Unit is testament that the Bergen County Prosecutor’s Office does not forget the victims of violent crimes no matter how much time passes, and that we will dedicate the energy and resources to bring justice to those victims whenever possible.”

In announcing the new unit with Acting Prosecutor Calo and the State Police, Attorney General Grewal discussed the importance of these specialized units and outlined a plan to encourage other counties to implement such units to focus personnel and resources on investigating and solving cold cases. In April, the Attorney General announced the creation of a panel, led by the Honorable Virginia Long, former Justice of the New Jersey Supreme Court, and former U.S. Attorney for the District of New Jersey Paul J. Fishman, to advise on establishing a statewide Cold Case Unit in the Attorney General’s Office, as well as a Conviction Review Unit, which would review credible claims of innocence regarding defendants convicted of serious crimes. The panel is expected to make recommendations by September.

Acting Prosecutor Calo additionally states that the charges against Jose COLON are only accusations and that the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt, and would like to thank the Englewood Police Department and the United States Department of Justice for their assistance with this investigation.

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NJ Division on Civil Rights Obtains Settlements in Two Cases Where Support Dog Accommodations Were Denied for Disabled

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may 29,2018

the staff of the Ridgewood blog

Trenton NJ,  Attorney General Gurbir S. Grewal and the Division on Civil Rights announced today the settlement of two separate disability discrimination cases – both involving disabled New Jersey residents who were denied permission to keep medically-prescribed support dogs by the governing boards of their respective housing complexes.
In one case, Harbortown Sail, a residential complex located in Perth Amboy, agreed to pay a condominium renter $10,000 to resolve allegations it unlawfully discriminated by denying the woman’s request to keep a support dog that her prescribing physician told the Division would lessen her reliance on opioid pain medications.

In the other case Landmark East Corp., corporate owner of a housing complex in Ridgefield Park, paid a resident $16,000 to resolve allegations it unlawfully discriminated by denying the man permission to keep a medically-prescribed support dog that his treating physician described as “necessary” for his health.

“These are fair settlements that resolve troubling cases – cases in which residents with a documented disability were treated in ‘hardball’ fashion by governing boards that apparently did not recognize the distinction between a pet and a clinically-prescribed emotional support animal,” said Attorney General Grewal. “These cases should serve as a message to landlords – as well as the governing boards of condominiums and cop-ops across the state – that the New Jersey Law Against Discrimination (LAD) was created to protect the rights of people with disabilities, including those who require service dogs and emotional support animals. We are committed to upholding the LAD.”
Harbortown Sail, a townhome-style condominium community, allows unit owners to keep one domestic pet, but maintains a “no pets” policy for renters. In July 2015 a husband and wife signed a one-year lease – the wife suffers from multiple medical conditions including lupus, diabetes and neuropathy – and began occupying a two-bedroom unit, along with the wife’s support dog.

The wife – identified only as “T.D.” to protect her medical privacy – was advised by Harbortown’s management in August 2015 that as a renter she could not keep the dog. In response, T.D. submitted a letter from her treating physician opining that she “meets the definition of disability” and needs a support dog to help her cope with multiple illnesses. Harbortown’s Board rejected the doctor’s letter and denied permission for T.D. to keep the dog because the letter was not written on an authorized physician’s prescription pad.

The Board then followed up with a certified letter to T.D.’s husband advising that the couple’s lease was being terminated, and that they must vacate their rental property by January 31, 2016. Only after T.D. got rid of her support dog and advised the Board of its removal – in mid-January 2016 – did management rescind the lease termination.

During the Division on Civil Rights investigation, T.D.’s treating physician told an investigator she suffered chronic pain in her arms and lower back and the support dog helped T.D. cope better with her pain, and therefore use less opioid pain medication. The doctor also said he’d deliberately used his own office stationary in writing a letter on her behalf to the Harbortown Board, because prescription pads can be stolen.
In addition to the $10,000 settlement payout to T.D., Harbortown must revise its policy for reviewing and processing requests for exemption from its no pets rule.

Among other changes, the Board must eliminate its requirement that medical documentation be submitted only on a prescription pad. The revised policy must “acknowledge that there is a distinction between a service animal, such as a service dog, and an emotional support animal.” The updated policy also must recognize that, under the LAD “service dogs are not considered pets and shall be entitled to full and equal access to all housing accommodations.”
As part of the settlement, T.D. can submit a future request for permission to keep a support dog in her unit at Harbortown, and the Board must be guided by its revised policy. The Board also must arrange training on federal and state fair housing laws for all of Harbortown’s employees and managers.

In the Landmark East case, resident H.G. suffers from anxiety and depression. Three weeks after he moved in, H.G. wrote to Landmark East requesting permission to have a five-pound terrier live with him as an emotional support animal. A letter provided by his clinical psychologist noted that H.G. required an emotional support dog to help him cope, function more normally on a daily basis, and to “mitigate the symptoms he is currently experiencing.”
In response, Landmark East’s attorney sent a letter to H.G. indicating that the Board of Directors was “extremely disturbed” by his request to keep a service dog, and also accusing him of having acted “fraudulently” by signing a “no pet/sublet” letter when he obtained his housing unit.

H.G. then obtained a second letter from his treating physician explaining that an emotional support animal is “necessary for his emotional/mental health.” H.G. did not formally submit the letter to Landmark East, however, because he was unable to obtain a “physician’s verification request form” that he was told must accompany the submission. In fact, no such form existed.

On August 19, 2015, Landmark East sent a Notice of Violation to H.G. stating that he was in breach of the complex’s no pets restriction, and that his account would be fined $25 per week while the dog remained in his unit.
Landmark also threatened to terminate H.G.’s ownership interest in his unit within a week and sell his shared at public auction. After H.G. sought recourse through the Division on Civil Rights and incurred thousands of dollars in legal fees, Landmark East decided that his support dog could stay.

Under the settlement announced today, the Respondent must arrange for anti-discrimination training of its property managers, and “develop policies and procedures consistent with the agreement, with the goal of ensuring compliance with the Law Against Discrimination.”

Landmark East Corp. must submit to Division monitoring of its housing practices for two years and provide anti-discrimination training for its employees, managers, board members and agents. Landmark East is also subject to a $5,000 suspended civil penalty.

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NJ Attorney General Asks IRS to Withdraw Proposal that Would Upend New Jersey’s Charitable Deduction Tax Credit Law

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AG Grewal to IRS: Stop “Playing Politics” with SALT Tax Guidance—or Face a Legal Challenge

May 27,2018

the staff of the Ridgewood blog

Trenton NJ,  Attorney General Gurbir S. Grewal today urged the U.S. Internal Revenue Service (IRS) to drop its “misguided” plan to enact a new rule designed to undermine a recent New Jersey law. That law – signed by Governor Phil Murphy earlier this month – allows residents to receive property tax credits when they make charitable contributions to their local governments.

The Trump Administration enacted a tax overhaul in December 2017 that placed, for the first time, a $10,000 cap on the federal deduction for state and local taxes (SALT). In response, New Jersey, New York and other states passed laws allowing residents to instead make deductible charitable contributions to their local governments, and to receive partial tax credits when they do so. “But in an unprecedented move,” Attorney General Grewal explained, the IRS just yesterday “announced plans to end the deductibility of such contributions.”

In a letter to IRS Commissioner David J. Kautter, Attorney General Grewal points out that the New Jersey tax credit law is similar to 100 laws enacted in more than 30 other states, and is consistent with longstanding IRS guidance and numerous court decisions that such contributions remain deductible. So “the IRS’s plan will upend over 100 state programs in a single rule—a nightmare for both states and the IRS.” Yet the IRS has given “no reason for [its] sudden about-face.”

“The IRS should not play politics. Instead, it must confirm its longstanding interpretation of federal law,” Grewal explains in his letter. “Should the IRS and Treasury Department continue down this path, New Jersey will have no choice but to challenge the new rule in court.”

Attorney General Grewal’s letter notes that the New Jersey law authorizes municipal and county governments and local school districts to establish “charitable funds for specific purposes” and to permit residents to gain partial property tax credits for donating to those funds. Across the states with similar programs, charitable funds “run the gamut” from those designed to aid natural resource preservation efforts to funds that help provide financial aid for college-bound children, support shelters for the victims of domestic violence and many other programs.

The Attorney General contends that the IRS’s decision runs counter to the federal Tax Code, which makes plain that deductions are permissible for “any charitable contribution … payment of which is made within the taxable year.”
“The statute is explicit that such contributions include gifts given to state governments and their political subdivisions,” Grewal notes. “The only remaining issue is whether such gifts are deductible if the contributor gets a tax credit in return.” While the IRS has previously “answered that question resoundingly in favor of laws” like New Jersey’s, the latest guidance “suggests that the IRS plans to tell states and taxpayers alike the answer is no.”
“I ask you to think twice before going down that misguided road,” Grewal warns the IRS Commissioner. “The IRS’s longstanding approach, supported by precedent and policy, supports what New Jersey has done.”

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New Jersey Bureau of Securities Orders Three Online Cryptocurrency Promoters to Stop Offering Unregistered Securities in the State

Utah Software Engineer Mints Physical Bitcoins

May 22,2018

the staff of the Ridgewood blog

NEWARK NJ, Attorney General Gurbir S. Grewal and the Division of Consumer Affairs announced that the Bureau of Securities (“the Bureau”) today issued three emergency orders to stop online cryptocurrency-related investment entities from fraudulently offering unregistered securities in New Jersey.

The Cease and Desist Orders against Bullcoin Foundation a/k/a Bullcoin Gold (“Bullcoin”,) Trident d/b/a Trident Crypto Index Fund (“Trident”,) and Springcryptoinvest were announced today as part of “Operation Cryptosweep,” an international crackdown on fraudulent Initial Coin Offerings (“ICOs”) and crypto currency-related investment products.
More than 40 other state and provincial securities regulators in the United States and Canada are participating in the sweep, which is being coordinated by the North American Securities Administrators Association (NASAA), of which the Bureau is a member.

“New Jersey’s Bureau of Securities has been a national leader in proactively protecting investors against the significant threat of fraudulent activity involving initial coin offerings and cryptocurrency-related investment products,” said Attorney General Grewal. “Today the Bureau joins securities regulators across the nation and beyond in sending a message that we will vigilantly safeguard our financial industry from schemes and scams involving cryptocurrencies.”
Operation Cryptosweep has resulted in nearly 70 investigations and 35 completed or pending enforcement actions since the beginning of May. NASAA members are conducting additional investigations into potentially fraudulent conduct that may result in additional enforcement actions. These actions are in addition to more than a dozen enforcement actions previously undertaken by NASAA members regarding these types of products.
“New Jersey is proud to announce enforcement actions under Operation Cryptosweep to help raise public awareness of the risks associated with initial coin offerings and cryptocurrency-related investment products,” said Kevin Jespersen, Acting Director of the Division of Consumer Affairs. “The Cease and Desist Orders we issued today successfully shut down three online entities seeking to prey on New Jersey investors.”
The Bureau found that Bullcoin is offering investors an unregistered security in the form of an ICO of its Bullcoin Gold cryptocurrency (the “BCG token”) through its website and through various social media websites. The Bullcoin securities were not registered with the Bureau to be sold in New Jersey. Bullcoin further violated the law by failing to disclose key material facts to prospective investors, including its assets and liabilities, or financial information about the business; the risks associated with the BCG tokens; and the cryptocurrencies that the Bullcoin fund would invest. The Bureau also found that Bullcoin made untrue statements of material facts on its website, including that it is “the leading crypto-hedge fund,” an assertion that is either untrue or unsupported.

The Bureau found that Trident is offering investors an unregistered security in the form of an ICO of its Trident coins (“TDC Coin”) through its website and through various social media websites. The TDC Coins were not registered with the Bureau to be sold in New Jersey. Trident further violated the law by failing to disclose key material facts to prospective investors, including the identity of its principals; its physical address and principal place of business; its assets and liabilities, or financial information about the business; the persons or entities that developed the TDC coins; and the persons or entities that are buying and selling the cryptocurrency in the Trident Crypto Index Fund. The Bureau also found that Trident made untrue statements of material facts, including a statement on its website that in 2017 the Trident Crypto Index Fund had a return of more than 1400 percent but there is no evidence provided of these returns; and a statement on its WhitePaper that since the beginning of 2016 TDC coin has “gained by a factor of 154” but the Trident Website indicates that Trident was not founded until 2017.

The Bureau found that Springcryptoinvest is offering investors an unregistered security in the form of various investment packages through its website and through various social media websites. In order to invest with Springcryptoinvest, investors must open an online account through its website. After opening an account, investors are urged to fund the account by purchasing a plan using the cryptocurrencies Bitcoin, Litcoin, or payment websites PerfectMoney or Payeer. The Springcryptoinvest investment packages were not registered with the Bureau to be sold in New Jersey. Springcryptoinvest further violated the law by failing to disclose key material facts to prospective investors, including the identity of its principals; Springcryptoinvest’s assets and liabilities, and other financial information; and how investor funds are invested. The Bureau also found that Springcryptoinvest made untrue statements of material facts on its website by claiming it was incorporated in the United Kingdom in November 2002 with 04588340 as its registration number. However, United Kingdom registration number 04588340 is not assigned to Springcryptoinvest, and there is no United Kingdom registration number for the name Springcryptoinvest.

“Not every initial coin offering or cryptocurrency-related investment is fraudulent, but the risk of fraud is significant,” said Christopher W. Gerold, Chief of the New Jersey Bureau of Securities and Chair of NASAA’s Enforcement Section. “Since cryptocurrencies began attracting headlines last year, we have been warning investors to approach crypto-related investments with extreme caution and stay away from any investment that requires them to transmit funds to an unidentified online entity that fails to disclose who is behind its investment products, the financial status of its business, and the physical location of its operations.”
In April 2018, NASAA organized a task force of its member state and provincial securities regulators to begin a coordinated series of investigations into ICOs and cryptocurrency-related investment products. Regulators identified many cryptocurrency-related products and as part of its work, the task force identified hundreds of ICOs in the final stages of preparation before being launched to the public. These pending ICOs were advertised and listed on ICO aggregation sites to attract investor interest. Many have been examined and some were determined to warrant further investigation. A number of these investigations are ongoing and others resulted in enforcement actions announced today.
NASAA’s task force also found approximately 30,000 crypto-related domain name registrations, the vast majority of which appeared in 2017 and 2018.