Category: CNB CRIME

Camden Family Drug Ring of 14 Arrested

TRENTON – Attorney General Gurbir S. Grewal today announced that 12 individuals were indicted on charges including first-degree racketeering as alleged members of a family-

run drug network that distributed large quantities of heroin and fentanyl in a violence-torn area of North Camden. Two additional defendants face weapons charges, bringing the total number of defendants indicted to 14.

Six guns were seized in the investigation, including an illegal, untraceable “ghost gun” and plans and materials to make ghost guns. The ring stamped wax folds of heroin with the brand name “Bad Boys,” which has been linked to three overdoses, including two fatal overdoses.

The defendants were indicted yesterday by a state grand jury in “Operation Strikeout,” a collaborative investigation led by the Division of Criminal Justice Gangs & Organized Crime Bureau in cooperation with the Camden County Metro Police Department, Camden County Prosecutor’s Office, Camden County Sheriff’s Office, New Jersey State Police, Gloucester County Prosecutor’s Office, U.S. Drug Enforcement Administration (DEA) in Philadelphia, and Philadelphia Police Department.  Most of the defendants were arrested in October 2019, when arrest and search warrants were executed.

The following two alleged “owners and operators” of the drug network are charged with first-degree promoting organized street crime:

Wilbert Segarra, 40, of Camden

, the alleged primary ringleader, also faces a charge of first-degree leader of a narcotics trafficking network, which carries a sentence of life in prison, including 25 years without parole. In addition, Segarra and co-defendant Joseph Cooper Jr. are charged with attempted murder in the non-fatal shooting of a man at 27th and Howell Streets on May 24, 2019.  The shooting allegedly stemmed from violence between the drug network and a rival drug set. Segarra fled and was arrested on July 23, 2019 in Virginia, but he allegedly continued to run the drug network with Luis Rosado while on the run and in jail. The attempted murder case was initially investigated and charged by the Camden County Prosecutor’s Office.

Luis I. Rosado, 28, of Camden

, allegedly took Segarra’s place as operator of the drug network after the shooting in May 2019, receiving direction from Segarra through phone calls and mail.

Meligza Cruz, 32, of Camden

, Rosado’s girlfriend, allegedly managed day-to-day operations for the drug network. She is also charged with first-degree promoting organized street crime. Segarra, Rosado, and Cruz are all allegedly members of the G-Shine set of the Bloods street gang.

“Through this operation, we dismantled a major drug ring that allegedly was dealing large quantities of heroin and fentanyl in a violence-torn neighborhood in North Camden,” said Attorney General Grewal. “By targeting the entire alleged hierarchy of this network with first-degree charges – including a leader charge for the top ringleader and racketeering charges for 12 defendants – we are sending a strong message that we will prosecute drug traffickers to the full extent of the law. We will continue to collaborate with our partners in Camden and throughout New Jersey to arrest the drug dealers who are driving gun violence in our cities and fueling the opioid epidemic that is destroying so many lives.”

“These arrests are a testament not only to the outstanding work of our attorneys and detectives, but also to the strong working relationships that we have forged with our law enforcement partners in Camden and across the region,” said Director Veronica Allende of the Division of Criminal Justice. “I thank all of the agencies that assisted us in Operation Strikeout. This operation is a great example of intelligence sharing and proactive police work to target a criminal network that had been identified by the Camden County Police Department as a major threat to safety and quality of life.”

“Eliminating this violent drug network that was pedaling poison on the streets of our city will overwhelmingly improve the quality of life for residents and make the North and East Camden neighborhoods a safer place for residents,” said Camden Police Chief Joseph Wysocki. “Ultimately, we know more than 80 percent of fatal overdoses in the city are related to fentanyl adulterated narcotics killing scores of people. This staggering statistic alone underscores the critical work of Operation Strikeout. Furthermore, I want to thank the men and women of the other agencies who brought this case together and got these individuals off our streets.”

“These arrests highlight our continued efforts in Camden to get deadly drugs off the street and stop the violence that all too often goes hand-in hand with drug distribution,” said Acting Camden County Prosecutor Jill Mayer. “Two people died as a result of deadly doses of heroin mixed with fentanyl that were stamped with a brand name linked to these defendants, and another was shot as a result of the rivalry between drug sets.  If not stopped, the number of deaths could have grown.  We will continue to work collaboratively with all of the agencies who took part in this investigation to disrupt and eliminate these violent racketeering enterprises.”

“I want to thank the Attorney General for focusing resources and the tools that were needed to dismantle this network of individuals who were terrorizing the city,” said Camden County Sheriff Gilbert “Whip” Wilson. “Our agency was proud to work alongside our law enforcement partners to get these violent criminals off of our streets. Moving forward we will continue to assist our front line partners in eliminating violent crime and opioid distribution, not only making the city safer but improving public safety throughout the county.”

The investigation involved controlled purchases of hundreds of single-dose wax folds of heroin and fentanyl from the drug network beginning in January 2019. The network was based in the 400 block of Grant Street and operated in and around a section of North Camden extending from Grant Street to Elm Street between Coopers Poynt School and Northgate II Park. Most defendants face charges of third-degree distribution of heroin within 1,000 feet of a school.

Eight of the defendants, including Rosado and Cruz, were arrested on Oct. 4, 2019, when the partnering agencies executed arrest and search warrants in Camden and Philadelphia. Segarra was already in jail on the attempted murder charge at the time.  Most of the other defendants were arrested later.

Two semi-automatic handguns (one with a defaced serial number), $2,960 in cash, and approximately 285 wax folds of heroin and fentanyl, many bearing the stamp “SpongeBob,” were seized during a search of the residence where Rosado and Cruz live in the 400 block of 40th Street in Camden.

Investigators seized approximately 70 grams of pure fentanyl when they executed a search warrant at a residence on Whitaker Avenue in Philadelphia that Rosado called “the Office,” where he and others allegedly packaged heroin and fentanyl. The residence was an operational narcotics mill equipped with sifters, scales, various cutting agents, wax folds, and five rubber ink stamps used to stamp the following brand names on wax folds: “Bad Boys,” “SpongeBob,” “Glizzy Gang,” “NS,” and “Two Guns.” Heroin stamped with the brand “Bad Boys” has been linked to three overdoses, including two fatal overdoses.

Three semi-automatic pistols – including one illegal “ghost gun” assembled from parts bearing no serial number – were seized at the Philadelphia heroin mill, along with several large-capacity magazines, including a 50-round drum-type magazine. In addition, law enforcement seized polymer and schematic plans to manufacture ghost-gun assault rifles and semi-automatic pistols.

The investigation revealed that the enterprise had a structured hierarchy with defined roles, including “owners and operators,” “case workers,” “set managers,” and “trappers.” Segarra and Rosado allegedly were the co-owners and operators, and Meligza Cruz was the primary case worker. She allegedly managed the enterprise’s day-to-day drug distribution activities, assigning shifts and workers for the day, and having responsibility for the transfer of drugs and proceeds to and from Rosado and the set managers. The set managers directed the trappers, who were the street-level dealers who conducted hand-to-hand exchanges of drugs and money with buyers.  Some ring members served in multiple roles.

The following defendants were charged with first-degree racketeering in “Operation Strikeout” along with Segarra, Rosado, and Meligza Cruz:

Maria Morales, 29, of Camden

Ramon Saldana, 22, of Camden

Rafael Velazquez, 27, of Camden

Migdoel Morales-Cruz, 33, of Camden

Michael Canales, 23, of Camden

Angel Martinez, 34, of Camden

Daniel Sanjurjo, Jr., 21, of Camden

Emanuel Morales, 25, of Camden

Joseph Cooper Jr., 24, of Philadelphia

In addition to the first-degree racketeering charge, all 12 racketeering defendants listed above face a charge of second-degree conspiracy to distribute narcotics, and, with the exception of Segarra, are variously charged with additional second- and third-degree drug offenses.

The ring included multiple members of an extended family, several of whom live in the neighborhood where the drug network operated. Meligza Cruz, Maria Morales, Emanuel Morales, and Migdoel Morales-Cruz are all related as either siblings or cousins. Other ring members may also be related.

The following two people, who also are family members, were indicted on weapons charges:

Jose Morales, 49, of Camden

Jesus Morales Cruz, 34, of Philadelphia

Jose Morales, and Jesus Morales Cruz are charged with second-degree unlawful possession of a weapon and fourth-degree possession of a defaced firearm in connection with a handgun with a defaced serial number that was seized from a car following a traffic stop on May 8, 2019, as a result of the investigation. Jose Morales also faces a charge of second-degree possession of a weapon as a convicted felon in connection with that gun. Jose Morales was driving the car at the time, but Jesus Morales Cruz is the registered owner of the car.

Meligza Cruz is charged with second-degree endangering the welfare of a child for allegedly conducting drug transactions using vehicles while she had her and Rosado’s child, age 1 at the time, in the vehicles.

The following defendants were ordered detained following detention hearings: Wilbert Segarra, Luis Rosado, Ramon Saldana, Michael Canales, Angel Martinez, Emanuel Morales, and Jose Morales.

Deputy Attorney General Mohammad A. Mahmood presented the case to the state grand jury and former Deputy Attorney General Jamey Collidge was assigned to the investigation for the Division of Criminal Justice Gangs & Organized Crime Bureau, under the supervision of Deputy Bureau Chief Erik Daab and Bureau Chief Lauren Scarpa Yfantis.  Detectives David Swanson and Jon Norcia are the lead detectives for the DCJ Gangs & Organized Crime South Unit, under the supervision of Sgt. Peppi Pichette, Deputy Chief of Detectives Christopher Donohue, and Chief of Detectives Weldon Powell.

Attorney General Grewal commended the attorneys and detectives of the Division of Criminal Justice and all of the investigators who participated in “Operation Strikeout” for the Camden County Metro Police Department, Camden County Prosecutor’s Office, Camden County Sheriff’s Office, New Jersey State Police, Gloucester County Prosecutor’s Office, DEA in Philadelphia, and Philadelphia Police.

The charge of first-degree leader of a narcotics trafficking network carries a sentence of life in state prison, including 25 years without parole, and a fine of up to $750,000.  The charge of promoting organized street crime carries a sentence of 10 to 20 years in state prison, consecutive to the sentence for any underlying crime, and a fine of up to $200,000. The first-degree racketeering and first-degree attempted murder charges carry a sentence of 10 to 20 years in state prison, including a period of parole ineligibility equal to 85 percent of the sentence imposed, and a fine of up to $200,000.

Second-degree crimes carry a sentence of five to 10 years in state prison and a fine of up to $150,000. Second-degree possession of a weapon by a convicted felon carries a mandatory five-year period of parole ineligibility, and second-degree unlawful possession of a weapon carries a mandatory period of parole ineligibility equal to one-third to one-half of the sentence imposed or three years, whichever is greater. Third-degree crimes carry a sentence of three to five years in state prison and a fine of up to $15,000, while fourth-degree crimes carry a sentence of up to 18 months in prison and a $10,000 fine.

The indictment is merely an accusation and the defendants are presumed innocent until proven guilty.

The indictment was handed up to Superior Court Judge Timothy P. Lydon in Mercer County, who assigned the case to Camden County, where the defendants will be ordered to appear in court at a later date for arraignment.

County Prosecutor’s office and Cape May County Sheriff engage in joint operations to curtail drug epidemic

County Prosecutor’s office and Cape May County Sheriff engage in joint operations to curtail drug epidemic

Cape May Court House, New Jersey – Cape May County Prosecutor Jeffrey H. Sutherland and Sheriff Robert Nolan announce the seizure of Methamphetamine and the arrest of Andrew Wells, a 43-year-old resident of the Villas section of Lower Township.

Gloucestercitynews.net graphic files

On January 31, 2020, the Cape May County Prosecutor’s Office, Gangs Guns and Narcotics Task Force (GGNTF) along with the Cape May County Sheriff’s Office were in the Rio Grande area of Middle Township regarding to an ongoing narcotics investigation into the distribution of Methamphetamine by Andrew Wells. Members of the GGNTF were able to locate Andrew Wells and observed him entering into a vehicle and departing the area. With the assistance of a Cape May County Sheriff’s Office, marked patrol / K9 unit, a motor vehicle stop was performed of the vehicle in which Andrew Wells occupied. Pursuant to further investigation, over one ounce of crystal Methamphetamine was seized from the vehicle.

Andrew Wells was charged with Possession of CDS (methamphetamine), 3rd Degree and Possession with the Intent to Distribute CDS (methamphetamine), 2nd degree. * Andrew Wells was lodged at the Cape May County Correctional Center pursuant to bail reform.

Prosecutor Sutherland recognized the special role of the Sheriff’s Office with their marked vehicle K-9 unit to help apprehend Mr. Wells. Prosecutor Sutherland stated; “Having Sheriff Nolan provide two Sheriff Deputy’s with their unique background of having a direct connection with the county jail, court system and executing warrants, in addition to providing the K-9 unit is a force multiplier for our Task Force that contributes to making our community safer.”

Sheriff Nolan was glad to contribute to the Task Force and stated; “We are proud to provide our Deputies and K-9 Unit to play an affirmative role in investigating and apprehending criminals, in additional to our custodial role with the county jail, in making Cape May County safer.”

Prosecutor Sutherland continues to urge the citizens of Cape May County to report any information regarding illegal drug activity and or any criminal activity within community and that this information can be reported anonymously through the Cape May County Sheriffs Tip Line at cmcsheriff.net and click on anonymous tip, or through the Cape May County Crime Stoppers at 609-465-2800, or the Cape May County Prosecutor’s Office at 609-465-1135.

* Any charges are merely accusations and the defendants are presumed innocent until and unless they are proven guilty.

Federal Court Orders Deposition of Hillary Clinton on Emails and Benghazi

Court: ‘It is Time to Hear Directly from Secretary Clinton’

(Washington, DC) March 2, 2020–

Judicial Watch today announced that U.S. District Court Judge Royce C. Lamberth

granted

Judicial Watch’s request to depose former Secretary of State Hillary Clinton about her emails and Benghazi attack documents. The court

also ordered the deposition of Clinton’s former Chief of Staff, Cheryl Mills and two other State Department officials.

Additionally, the court granted Judicial Watch’s request to subpoena Google for relevant documents and records associated with Clinton’s emails during her tenure at the State Department.

The ruling comes in Judicial Watch’s

lawsuit

that seeks records concerning “talking points or updates on the Benghazi attack” (

Judicial Watch v. U.S. Department of State

(No. 1:14-cv-01242)). Judicial Watch famously uncovered in 2014 that the “talking points” that provided the basis for Susan Rice’s false statements were

created by

the Obama White House. This Freedom of Information Act (FOIA) lawsuit

led directly

to the disclosure of the Clinton email system in 2015.

In December 2018, Judge Lamberth first

ordered discovery

into whether Secretary Clinton’s use of a private email server was intended to stymie FOIA; whether the State Department’s intent to settle this case in late 2014 and early 2015 amounted to bad faith; and whether the State Department has adequately searched for records responsive to Judicial Watch’s request. The court also authorized discovery into whether the Benghazi controversy motivated the cover-up of Clinton’s email. The court

ruled

that the Clinton email system was “one of the gravest modern offenses to government transparency.” The State and Justice Departments continued to defend Clinton’s and the agency’s email conduct.

Judge Lamberth today overruled Clinton’s and the State and Justice Department’s objections to limited additional discovery by first noting:

Discovery up until this point has brought to light a noteworthy amount of relevant information, but Judicial Watch requests an additional round of discovery, and understandably so. With each passing round of discovery, the Court is left with more questions than answers.

Additionally, Judge Lamberth said that he is troubled by the fact that both the State Department and Department of Justice want to close discovery in this case:

[T]here is still more to learn. Even though many important questions remain unanswered, the Justice Department inexplicably still takes the position that the court should close discovery and rule on dispositive motions. The Court is especially troubled by this. To argue that the Court now has enough information to determine whether State conducted an adequate search is preposterous, especially when considering State’s deficient representations regarding the existence of additional Clinton emails. Instead, the Court will authorize a new round of discovery …

With respect to Clinton, the court found that her prior testimony, mostly through written sworn answers, was not sufficient:

The Court has considered the numerous times in which Secretary Clinton said she could not recall or remember certain details in her prior interrogatory answers. In a deposition, it is more likely that plaintiff’s counsel could use documents and other testimony to attempt to refresh her recollection. And so, to avoid the unsatisfying and inefficient outcome of multiple rounds of fruitless interrogatories and move this almost six-year-old case closer to its conclusion, Judicial Watch will be permitted to clarify and further explore Secretary Clinton\’s answers in person and immediately after she gives them. The Court agrees with Judicial Watch – it is time to hear directly from Secretary Clinton.

“Judicial Watch uncovered the Clinton email scandal and we’re pleased that the court authorized us to depose Mrs. Clinton directly on her email conduct and how it impacted the people’s ‘right to know’ under FOIA,” stated Judicial Watch President Tom Fitton.

Clements Bridge Road in Barrington to be Closed March 3 to 6 During The Day

Barrington Police Department advises you to AVOID Location due to an upcoming traffic issue. A road construction project near Clements Bridge RD and Trinity PL. will close Clements Bridge RD. Southbound at Gloucester Pike and will require a

detour of traffic from March 3-6. 7:00am- 5:00pm. Southbound vehicles can either take W. Gloucester Pike into Bellmawr and utilize Black Horse Pike, or take E. Gloucester Pike to utilize Atlantic Ave and White Horse Pike. Businesses between Gloucester Pike and Williams Ave will be accessible to southbound traffic.  No vehicles will be allowed southbound past Williams Ave. All northbound traffic will flow normally.

Address/Location

Barrington Borough, NJ

229 Trenton Ave

Barrington, NJ 08007

Contact

Emergency: 9-1-1

Non-emergencies:

856-547-0706

NJ State Trooper Charged with Allegedly Receiving Child Porn from Another Trooper

Andrea V. Knox, who is assigned to Troop D at the Moorestown station, has been suspended, according to the New Jersey State Police

TRENTON — A State Police trooper faces criminal charges after she allegedly received images of child pornography in a sexually explicit text exchange with another trooper.

Gloucestercitynews.net graphic files

Andrea V. Knox, of Mount Holly, failed to report her fellow trooper had shared child pornography, “despite her duty as a police officer to enforce and uphold the laws,” the state Attorney General’s Office said Tuesday.

Knox, 35, was charged Tuesday with official misconduct and possession of child pornography, the agency said in a statement. Knox, who is assigned to Troop D at the Moorestown station, has been suspended, the statement said.

The other trooper, Jeffrey Reitz of Williamstown, was charged with distribution of child pornography.

Reitz, 48, previously was indicted in December 2019 on two counts of possession of child pornography. Those charges were related to a separate exchange of texts with a different woman, the statement said.

“During those exchanges, the woman proposed that Reitz sexually assault a young girl and sent him a sexually explicit photo of the girl,” the Attorney General’s Office said.

It had described the girl as the woman’s 5-year-old daughter.

A criminal complaint in that case alleges Reitz responded to the child’s photo by texting “NICE!” and making a reference to sexual arousal.

That exchange occurred in December 2014, but investigators only learned of the images when the mother’s phone was seized “much later” during a separate investigation of the Gloucester City woman.

Additional images of alleged child pornography were found in an iCloud account that belonged to Reitz, the statement said.

Further investigation of the iCloud account revealed alleged text exchanges between the troopers that allegedly included sexually explicit conversations about an underage girl, it said.

According to the statement, Knox asked Reitz for details about sex acts he’d like to perform on the child during a text exchange on Aug. 27, 2018.

“The following day, the pair had another sexually explicit text exchange, during which Reitz sent Knox photos of people at a nudist location,” the statement said.

The images included photos of two exposed girls, it said.

“Knox failed to report that Reitz shared items of child pornography with her,” the statement said.

Reitz has been suspended since his arrest in April 2019.

The troopers were charged after an investigation by the Financial and Cyber Crimes Bureau of the state’s Division of Criminal Justice.

Harrisburg Businessman Sentenced To Prison For Defrauding College Faculty Union

HARRISBURG Pa– The United States Attorney’s Office for the Middle District of Pennsylvania announced that the former owner/operator of a Harrisburg based dental and vision claims processing business, Michael Timothy Buchanan, age 69, currently a resident of Fishers, Indiana, was sentenced to 37 months’ imprisonment followed by three years of supervised release on February 26, 2020, by Senior U.S. District Court Judge Sylvia H. Rambo, for defrauding a trust fund established by the

Association of Pennsylvania State College and University Faculties (APSCUF) out of $1,493,629.

According to United States Attorney David J. Freed, Buchanan pleaded guilty in May 2019 to a criminal information charging him with one count of health care fraud.  Buchanan executed a scheme to defraud the Pennsylvania Faculty Health and Welfare Fund (The Fund) between 2007 and 2017 by his submission of false, inflated invoices for the services his company, Actuaries, Consultants and Administrators, Inc. (ACA), provided The Fund in connection with the processing of dental and vision claims submitted by members of the APSCUF Union.

The Fund paid ACA $5.20 for each vision claim it processed and $8.10 for each dental claim it processed. Buchanan routinely and artificially inflated the number of claims it allegedly processed for The Fund between 2007 and 2017 that resulted in a $1,493,629 overpayment to ACA.

“Citizens have a right to expect that the hard-earned dollars they contribute towards ever increasing health care costs will be protected by the stewards of those funds,” said U.S. Attorney Freed.  “When such funds are misappropriated via fraud, we in federal law enforcement will step in to hold the fraudsters accountable.  We are pleased that Judge Rambo’s sentence recognized the serious nature of the defendant’s conduct, and that he has been ordered to pay back what he stole.”

“For a decade, Buchanan orchestrated the overbilling of the faculty union,” said Tara A. McMahon, Acting Special Agent in Charge of the FBI’s Philadelphia Division.” “His company deliberately and repeatedly submitted one false claim after the next, resulting in the theft of nearly $1.5 million. With this sentence, he’ll begin to answer for such brazen fraud.”

“In an effort to personally enrich himself, Michael Buchanan stole more than $500,000 from union members’ health benefits through his scheme of submitting inflated invoices to the union trust fund,” said Derek Pickle, Acting Special Agent-in-Charge, Philadelphia Region, U.S. Department of Labor Office of Inspector General.  “We will continue to work with our law enforcement partners to protect the financial integrity of labor organizations,”

Judge Rambo ordered Buchanan to pay $1,493,629 in restitution to the Fund, to forfeit his interest in $1,493,629 in U.S. currency, and six Fidelity Brokerage Services retirement accounts.  Judge Rambo also ordered Buchanan to commence service of his sentence on April 20, 2020.

The case was investigated by the Harrisburg Office of the FBI and the U.S. Department of Labor, Office of Inspector General. Assistant United States Attorney Kim Douglas Daniel prosecuted the case.

Shenandoah Adams Sr., Arrested For Mortgage Fraud/Defrauding The Orange Library

NEWARK, N.J. – A Union County, New Jersey, man was arrested today by federal agents on charges of mortgage fraud and scheming to defraud the Orange Public Library, U.S. Attorney Craig Carpenito announced.

Shenandoah Adams Sr., a/k/a “Shane Adams Sr.,” 54, of New Providence, New Jersey, is charged by indictment with six counts of wire fraud and two counts of making false statements in connection with a mortgage loan. He is scheduled to appear this afternoon before U.S. Magistrate Judge Leda Dunn Wettre in Newark federal court.

According to the indictment:

Adams was a principal of Adams Property Management and Investment Group Limited Liability Company (Adams Property Management), which purchased property on Hilton Street in East Orange, New Jersey, in 2014. The following year, Adams arranged for a close associate (Individual 1) to obtain a $153,562 loan from a mortgage lender to purchase the Hilton Street property from Adams Property Management. Adams knew that Individual 1 did not have the money to pay the balance of the purchase price of $225,000. At the closing on March 25, 2015, Adams directed Individual 1 to issue a fraudulent check in the amount of $90,280.47 (the balance of the purchase price) to give the false impression that Individual 1 had paid the closing balance. Adams reassured Individual 1 that Adams would not negotiate the check. Adams signed a settlement statement, falsely certifying that Individual 1 paid the closing balance and that the settlement statement was a true and accurate statement of all receipts and disbursements made in connection with the sale of the Hilton Street property, when Adams knew that Individual 1’s check was fraudulent. Adams used Individual 1’s loan proceeds to pay off Adams Property Management’s $100,000 mortgage loan to purchase the Hilton Street Property and to obtain a $26,335.30 check for Adams Property Management.

Although Adams reassured Individual 1 that Adams would fund Individual 1’s mortgage payments, by May 2016 Individual 1’s mortgage payments on the Hilton Street property were substantially in arrears. Adams arranged for Individual 1 to sell the property to another associate for a price of $255,000. The closing on that sale commenced on May 31, 2016; the total amount to pay off Individual 1’s mortgage was $210,565.34. On June 1, 2016, Adams and Individual 1 had a telephone conversation with an out-of-state representative of the mortgage servicer for Individual 1’s lender, during which Adams made false and fraudulent statements to induce the lender to reduce the payoff amount. The lender agreed to reduce Individual 1’s payoff amount to $190,000. At Adams’s direction, Individual 1 cashed the check for the amount of the reduction, $20,665.34, and delivered the cash proceeds to Adams.

Adams also was a principal of VH Electrical and Plumbing Limited Liability Company (VH). On March 11, 2015, Adams, on behalf of VH, entered into a contract with the Orange Public Library to replace the library’s HVAC/Chiller unit for a price of $49,000. The project was funded by a U.S. Department of Housing and Urban Development (HUD) Community Development Block Grant to the library and Orange.

Before getting the contract with the library, Adams sent the library’s executive director, Timur Davis, two fake quotes purportedly from two vendors to give the false impression that VH would replace the library’s chiller for less than those other vendors. After VH had been hired, Adams sent Davis records to give the false impression that Adams was taking steps to order a replacement chiller. Adams received $40,000 from the library, but did not replace the chiller. Davis pleaded guilty on Feb.13, 2020 to making false statements to HUD in connection with the project.

The charges of wire fraud carry a maximum potential penalty of 20 years in prison and a maximum $250,000 fine. The charges of making false statements in connection with a mortgage application carries a maximum potential penalty of 30 years in prison and a maximum potential fine of $1 million.

U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark; special agents of the U.S. Department of Housing and Urban Development, Office of Inspector General, under the direction of Special Agent in Charge Christina Scaringi; and special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge John R. Tafur, with the investigation leading to today’s arrest.

The government is represented by Assistant U.S. Attorneys J Imbert and Cari Fais of the U.S. Attorney’s Office’s Special Prosecutions Division.

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

Defense counsel: TBD

Real Estate Ponzi Scheme

Rhode Island Woman’s Fraud Preyed on Friends and Neighbors

Monique Brady\’s house in East Greenwich, Rhode Island. Prosecutors said fraud proceeds paid for the home\’s $9,400 per month mortgage, with a total of $342,243 in mortgage payments made during the scheme.

A Rhode Island woman who preyed on the trust of friends, family, and neighbors in a dubious investment scheme—one that gilded her reputation and lifestyle while fleecing her victims of $4.8 million—was sentenced this month to eight years in prison. She was also ordered to pay back her victims.

Monique Brady pleaded guilty last July in federal court to running a fraud scheme prosecutors have described as “reprehensible,” “insidious,” and “depraved.” Brady, 45, of East Greenwich, claimed her property preservation company, MNB, had contracts to rehabilitate New England properties. She said she needed investments of $20,000 to $80,000 to pay subcontractors to perform the work. In return, investors were promised a 50-percent yield once the rehabilitation work was complete.

In the end, investigators determined it was all a $10 million charade. There were no large-scale property rehabs and only a few legitimate low-dollar contracts—almost all the money was used to prop up Brady’s Ponzi scheme and support a lavish lifestyle on the backs of friends who thought they knew her.

“She had lifelong friends who were just totally and completely betrayed by her,” said Pepper Daigler, a special agent in the FBI’s Boston Field Office who worked with Internal Revenue Service special agents on the case.

Brady’s victims—among them, multi-millionaires, firefighters, young, and elderly—represented a cross-section of the tony community 30 minutes south of Providence. Most had a very close connection to Brady. Investigators identified 23 individuals who lost their investments in the scheme, which encouraged investors to roll over purported gains to increase their stakes and potential windfalls. Some lost everything in the scam, which went on for at least four years before Brady was arrested on April 25, 2019, as she prepared to flee the country.

“She had life-long friends who were just totally and completely betrayed by her.”

Pepper Daigler, special agent, FBI Boston

“The burden of this loss is nearly impossible to put into words,” said one victim, identified as J.L., a week before Brady’s February 11 sentencing. “The stress my family has endured is beyond measure. Even my children’s futures are altered forever.”

The scam came to light after the IRS criminal investigators discovered inconsistencies between Brady’s spending and her business. That led to closer forensic analysis and then a deeper dive into financial records that showed repeated deposits of large checks, including some for $50,000 or $60,000. The high-dollar figures are not that unusual in real estate, where flipping houses and extensive remodels can reach into six figures. But the sham fell apart quickly when federal agents began interviewing Brady’s “investors.”

“That’s essentially where the wheels came off for her,” said Special Agent Mark Homsi of the IRS Criminal Investigation Division. “We were presenting them with records from these vendors where she did little or no actual work and they are providing us with these promissory notes for $50,000 or $60,000 investments. That was really the turning point—the interviews with these people.”

A 67-year-old victim with a quadriplegic husband and elderly parents with Alzheimer’s and dementia said in a statement to the court that she lost both her life savings and her parents’ savings to Brady’s ploy.

“I cannot articulate the guilt that haunts me for having made such an irresponsible decision that was grounded in emotion instead of common sense,” L.R. said in a victim impact statement. “Monique was fully aware of who I was as a caregiver, and she exploited that knowledge for her own selfish and criminal gain.”

In all, the self-styled preservation expert solicited investments for projects on 171 properties; no work was ever performed on 98 of those. Prosecutors said Brady’s conduct was as bad as they have ever seen in a Rhode Island fraud case. Brady even continued her scheming while incarcerated and awaiting sentencing, according to a February 6 sentencing memorandum. Her misconduct included making more than 200 unauthorized phone calls from prison using other inmates’ personal identification numbers.

Investigators said Brady’s case is a cautionary tale for anyone considering a get-rich-quick scheme. Her victims thought she was their friend and that she was doing them a favor—letting them in on something too good to pass up. But in this case, it was all too good to be true.

IRS Agent Homsi said Brady’s affluent friends were just as taken in as those who could least afford it: “Oftentimes, these are people who are very successful in the business world. And they would say, ‘If it wasn’t Monique, I would have done much more due diligence.’ But they just had that implicit trust in her.”

Meanwhile, the investments were paying for Brady’s extravagances, including a $9,400 monthly mortgage; trips to the tropics, Europe, multiple Super Bowls; a luxury shoe collection; and elective plastic surgery that she paid for in cash.

It wasn’t until the scheme fell apart that its breadth became apparent. Evidently, Brady encouraged secrecy among her investors—another common ploy of scam artists and Ponzi schemes. She eschewed talking business in social settings, said FBI Special Agent Daigler. Potential investors might have seen that as a sign of class, while others might see a potential red flag.

“I guess if somebody tells you to keep a secret, always be weary of why you have to keep it a secret,” Daigler said.

“Oftentimes, these are people who are very successful in the business world. But they just had that implicit trust in her.”

Mark Homsi, special agent, IRS Criminal Investigation

Resources

Rhode Island Businesswoman Sentenced in $10M Ponzi Scheme That Defrauded 23 Individuals

Smyra Resident Arrested on Illegal Drug Charges

DOVER, Del. – A Smyrna man was arrested Feb. 25 on drug charges following a traffic stop and vehicle search in Dover conducted by the Delaware Natural Resources Police – Environmental Crimes Unit, in which officers seized as evidence 322 grams of marijuana, 66 Xanax pills, $1,225 in cash, a digital scale, and drug packaging materials.

Andrew Burns, 23, was charged with one count of each of the following:

Manufacture/deliver/possession with intent to deliver controlled substance Tier 2 quantity

Manufacture/deliver/possession with intent to deliver controlled substance

Possession of controlled substance Tier 2 quantity

Possession of controlled substance Tier 1 quantity

Conspiracy second degree – agreement to engage in felony criminal conduct

Possession of drug paraphernalia not related to personal use quantity marijuana

Failure to have insurance identification in possession

Operation of an unregistered motor vehicle

Display of license plate

Unsafe passing on the left

Duty to sign and carry driver’s license

Burns was arraigned via video phone in Justice of the Peace Court 2 and released on his own recognizance, pending a court date.

Delawareans are encouraged to report environmental violations to DNREC’s Natural Resources Police Environmental Crimes Unit by calling the 24-hour environmental complaints line at 800-662-8802.

Philadelphia Bar Association Calls for an End to Unwarranted Attacks on the U.S. Judiciary

Encourages All Americans to Speak Up in Defense of the Constitution and Our Country’s Democratic Principles

PHILADELPHIA, PA –

In response to recent, unwarranted attacks on the U.S. Judiciary, Chancellor Hon. A. Michael Snyder (ret.) of the

Philadelphia Bar Association

, the nation’s oldest metropolitan Bar Association, issued the following statement:

“As the nation’s oldest metropolitan Bar Association, the Philadelphia Bar Association has always considered certain principles to be imperatives of this Association and of the legal profession. We believe that the rule of law and an independent judiciary are cornerstones of a democracy and of a civilized society.

“Unless these structures and principles are vibrant, and unless we vigorously defend their existence, the dream of a government of the people, by the people, and for the people begins to crumble.

“The rule of law demands that each individual, whether rich or poor, famous or unknown, understands that the law is applied equally to them. We cannot have two systems of justice, one for the rich and connected and one for everyone else.

“Our Constitution provides for a separation of powers through a system of checks and balances which ensures that no single branch of government becomes too powerful.

“An independent judiciary is a necessity if we are to function as a democracy and not as an authoritarian society. Judges need to know that their lawful judgments will be upheld, and that their very legitimacy may not be questioned. Under the rule of law, the way to question or challenge a judicial determination or Order is through an appellate review process.

“Recently, we have seen a course of conduct, including communications meant to exert undue influence on the judiciary, that seems intent on undermining the rule of law and disrupting the system of checks and balances. Such attacks are dangerous in the extreme. We cannot allow them to continue.

“We call for an end to these unwarranted attacks on the judiciary and for all Americans to speak up in defense of the Constitution and our democratic principles.

“A society without laws is not a society; it is chaos. A society without an

i

ndependent judiciary is not the society that we should value.”

# # #

The Philadelphia Bar Association, founded in 1802, is the preeminent metropolitan association of lawyers in the United States. It is a keystone in the ongoing developments of the Philadelphia and Pennsylvania legal systems.

With more than 200 years of dedicated service to stand on, the Philadelphia Bar Association is firmly rooted in the Philadelphia community as a steady and reliable bellwether. To learn more about the association,

visit here

.