Category: CNB CRIME

Using Elaborate Fraud Scheme Gang Stole Over $3 Million from Various Banks

Only in New Jersey!!!

Three defendants pleaded guilty to third-degree charges and were sentenced to probation. Five defendants were admitted into the Pre-Trial Intervention Program and had their charges dismissed ~

CNBNews editor

TRENTON

–Attorney General Gurbir S. Grewal announced that a fourth leader was sentenced to state prison today in connection with an elaborate fraud scheme in which the participants used fictitious identities to obtain credit cards and open bank accounts that they used to steal approximately $3 million from various banks. A total of 14 defendants were charged in the joint state and federal investigation.

Aqeel Sheikh, 58, of Newark, N.J.

, was sentenced today to seven years in state prison by Superior Court Judge Candido Rodriguez Jr. in Union County. He pleaded guilty previously to charges of conspiracy and money laundering. Another ringleader was sentenced last month.

Naim Tahir, 51, of Clark, N.J.,

was sentenced on Nov. 15 to seven years in prison by Superior Court Judge Robert Kirsch. He also pleaded guilty to charges of conspiracy and money laundering.

Two additional leaders of the scheme were sentenced to prison earlier this year by Judge Rodriguez as a result of the investigation.

Shaikh Dawood, 61, of Cranford, N.J.

, pleaded guilty to second-degree theft by deception and was sentenced to eight years in prison on March 8, 2019.

Mohammad Zaman, 46, of Staten Island, N.Y.

, pleaded guilty to second-degree theft by deception and was sentenced to five years in prison on Feb. 1, 2019. A fifth defendant,

Hassan Shahbaz, 46, of Jersey City, N.J.

, pleaded guilty to first-degree charges of conspiracy and money laundering. He faced a recommended sentence of eight years in prison, with three years of parole ineligibility, but he was deported prior to sentencing.

Deputy Attorney General Thomas Huynh and former Deputy Attorney General Brian Faulk took the guilty pleas, and DAG Huynh handled the sentencing hearings for the Division of Criminal Justice Financial & Cyber Crimes Bureau. The defendants were charged in an investigation by the Division of Criminal Justice, U.S. Postal Inspection Service, U.S. Homeland Security Investigations, New Jersey Office of Homeland Security & Preparedness, U.S. Social Security Administration Office of Inspector General, and New Jersey Department of the Treasury’s Office of Criminal Investigation. Those agencies were assisted by the Hudson County Prosecutor’s Office, Union County Sheriff’s Department, Clark Police Department, Secaucus Police Department, and Jersey City Police Department.

“This type of credit card fraud involving stolen and false identities imposes huge costs on the financial services industry and ultimately on consumers,” said Attorney General Grewal. “We are committed to working with the industry and our state and federal partners to investigate and aggressively prosecute these crimes.”

“This was a complex case involving hundreds of fraudulent credit cards and millions of dollars in transactions,” said Director Veronica Allende of the Division of Criminal Justice. “I commend the attorneys and detectives in our Financial & Cyber Crimes Bureau and all of the agencies that partnered with us to skillfully investigate this criminal ring and secure prison sentences for its leaders.”

“This complex sort of scheme of credit card fraud harms both commerce and consumers and nationwide results in billions of dollars in financial losses yearly,” said Brian Michael, Special Agent in Charge, Homeland Security Investigations (HSI), Newark. “In this case, all of the underhanded maneuvering of the defendants was no match for the cooperative efforts of law enforcement that exposed the scheme and delivered justice.”

“This investigation is an excellent example of a partnership between state and federal law enforcement agencies, working together to bring down a sophisticated bank fraud network,” said USPIS Inspector In Charge James V. Buthorn. “I fully commend the hard work put forth by all of the agencies involved, which resulted in bringing this group of fraudsters to justice. Postal Inspectors will continue to tirelessly investigate these types of financial crimes that utilize the U.S. Postal Service to facilitate illicit activities.”

“This elaborate scheme harmed not only the financial services industry, but also the integrity of the Social Security number as an identifier,” said John Grasso, Special Agent-in-Charge of the Social Security Administration Office of the Inspector General, New York Field Division. “I want to thank the Attorney General’s Office and our Federal and State law enforcement partners for pursuing this investigation and dismantling the scheme. We will continue to work with other agencies to prevent the misuse of Social Security numbers for personal gain.”

“A criminal enterprise of this scale and sophistication speaks to the modern challenges of protecting consumers and financial institutions from fraud,” said N.J. State Treasurer Elizabeth Maher Muoio. “Treasury is proud to have contributed to this successful effort and we stand ready to continue working with our state and federal partners to ensure that perpetrators of similar financial schemes are brought to justice.”

Three other defendants – Rilvan Junaid, Mohammad Shakeel and Mohammad Khan – pleaded guilty to third-degree charges and were sentenced to probation. Five defendants – Aqeel Ahmed, Shama Musir, Faisal Mushtq, Shakeela Ahmed, and Huda Ahmed – were admitted into the Pre-Trial Intervention Program and had their charges dismissed. One defendant, Muhammad Bhatti, 68,

remains a fugitive.

The defendants created “synthetic” identities by pairing stolen Social Security numbers with fictitious names and birth dates, using them to open numerous checking and credit card accounts. They opened the accounts online to avoid face-to-face interaction with the financial institutions. Tahir was primarily responsible for creating the synthetic identities and applying for the bank accounts and credit cards, using personal identifying information supplied by Zaman.

Bad checks were deposited into the bank accounts so they could be used to make payments on the credit cards, which temporarily inflated the lines of credit on the cards. In addition, funds were withdrawn from the bank accounts via ATM and U.S. Postal Money Order Purchases before the bad checks were discovered. The defendants ultimately “busted out” the credit cards by running up the unpaid balances until they reached or exceeded the credit limits.

The scheme included a group of “merchants,” led by Shahbaz and Sheikh, who in many cases ran shell businesses set up solely to participate in the fraud. Under the direction of Dawood and other defendants, the merchants swiped the fraudulent credit cards using point of sale terminals and received reimbursement from credit card processing companies via wire transfer, while never actually providing any merchandise or services. The defendants split the proceeds. The bank accounts of the shell companies also were used to launder the proceeds of the scheme, with checks being written from one company to another as if they were conducting business.

Shahbaz, Sheikh, and Dawood set up USA United Trading, a business owned by Shahbaz that was opened for the sole purpose of defrauding financial institutions. USA United Trading held itself out as a carpet retailer, with a store front in Jersey City. USA United Trading conducted approximately $1.2 million in fraudulent credit card transactions.

The investigation began when the U.S. Postal Inspection Service (USPIS) received a referral from Wells Fargo Bank about a bad check case the bank was investigating. USPIS enlisted agents of the Social Security Administration and U.S. Homeland Security Investigations in Newark, who in turn enlisted the state agencies.

Former Deputy Attorney General Anthony Torntore presented the case the state grand jury for the Division of Criminal Justice Financial & Cyber Crimes Bureau. The lead investigators were Special Agent Bradley E. Greenberg of U.S. Homeland Security Investigations; Postal Inspector Brian Macdonald; former Lt. Harry Maronpot, former Detective Katelyn Prata, and former Detective James Gallo of the New Jersey Division of Criminal Justice; Special Agent Kristie Morgan of the Social Security Administration Office of Inspector General; and former Special Agent Matthew Henderson of the New Jersey Department of the Treasury’s Office of Criminal Investigation.

Defense Attorneys:

For Sheikh: Gregory S. Mullens, Esq., Calcagni Kanefsky LLP, Newark, N.J.

For Tahir: Luis O. Diaz, Esq., New York, N.Y.

OFFICER DOWN: Nassau Bay Sergeant Kaila Sullivan Killed by Suspect Driving Car

Sergeant Kaila Sullivan

Nassau Bay Police Department, Texas

End of Watch

Tuesday, December 10, 2019

Sergeant Kaila Sullivan was killed when she was intentionally struck by a vehicle driven while attempting to arrest a wanted subject in the 2000 block of San Sebastian Court at 8:30 pm.

Officers had conducted a traffic stop on the man who was wanted on a warrant for domestic assault. When they attempted to place him in custody he began to resist and was able to re-enter his vehicle. He struck fatally Sergeant Sullivan as he fled the area in the vehicle.

Sergeant Sullivan was transported to HCA Clear Lake Hospital where she succumbed to her injuries.

The vehicle was found abandoned a short distance away and the subject remains at large.

Sergeant Sullivan had served with the Nassau Bay Police Department for 16 years.

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published Gloucestercitynews.net | Dec. 11, 2019

OFFICER DOWN: Jersey City Det. Joe Seals Shot and Killed

Detective Joseph Seals

Jersey City Police Department, New Jersey

End of Watch

Tuesday, December 10, 2019

Detective Joseph Seals was shot and killed at 12:30 pm in Bayview Cemetery after encountering two subjects in a van that was linked to a homicide in Bayonne, New Jersey.

During the encounter, Detective Seals was shot in the back of the head. The two subjects then fled in the stolen van and eventually barricaded themselves inside of a grocery store on Martin Luther King Drive. They murdered three people inside of the store and then engaged responding officers in a prolonged shootout for several hours in which two officers were wounded. Both subjects were eventually found deceased inside of the store.

Detective Seals had served with the Jersey City Police Department for 13 years and had served in law enforcement for a total of 18 years. He is survived by his wife and five children.

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published Gloucestercitynews.net | Dec.11, 2019

Jury Convicts Shane Whipple of Murdering his Aunt

Camden City, NJ–On December 10, 2019, after a week of trial, a jury deliberated for less than 90 minutes and convicted Shane Whipple, 29, of Murder, Unlawful Possession of a Weapon and

Possession of a Weapon with an Unlawful Purpose in the murder of his aunt, Jennifer Whipple.  Ms. Whipple was killed in her Winslow Township apartment on January 26, 2018.  Her body was discovered on January 27, 2018, after out of state family members called the Winslow Township Police Department and requested a well-being check.  Shane Whipple faces life in prison when he is sentenced on February 7, 2020.

Released Wednesday, December 11, 2019.

Two Camden City Men Charged with Murder

CAMDEN CITY NJ (Dec. 11, 2019)–Luis Colon-Molina, 36, and Wilfredo Boulones-Cruz, 49, both from Camden, were each charged with Felony Murder, Murder, and Armed Robbery on December 9, 2019, according to Acting Camden County Prosecutor Jill S. Mayer and Camden Police Chief Joseph Wysocki.

At approximately 12:12 p.m. on December 2, 2019, Camden County Police responded to reports of an unconscious female in the park near the 1600 block of Baird Boulevard. When officers arrived, they located the victim, Hayley Steinberg, 31, of Medford, deceased at the scene.

Colon-Molina and Boulones-Cruz were apprehended by the Delaware River Port Authority on December 2, 2019, after a brief foot pursuit. Both men were remanded to the Camden County Jail pending a pretrial detention hearing.

All persons charged with crimes are presumed innocent until proven guilty in a court of law.

Released Tuesday, December 10, 2019

Bordentown City Man Sentenced for Distributing Child Pornography Online

TRENTON – Attorney General Gurbir S. Grewal announced that a Burlington County man who had hundreds of items of child pornography on his laptop computer was sentenced to prison today for distributing child pornography online through a peer-to-peer network.

Michael D. Gordon, 34, of Bordentown City, N.J., was sentenced to five years in state prison, including 2 ½ years of parole ineligibility, by Superior Court Judge James J. Morley in Burlington County. Gordon pleaded guilty on July 17, 2019 to a second-degree charge of distribution of 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. In pleading guilty, Gordon admitted that he knowingly used file-sharing software to make multiple items of child pornography readily available for any other user to download from a “shared folder” on his computer.

Deputy Attorney General Supriya Prasad prosecuted Gordon and handled the sentencing for the Division of Criminal Justice Financial & Cyber Crimes Bureau. Gordon was arrested in April 2019 as the result of an investigation by the Division of Criminal Justice, conducted with assistance from U.S. Homeland Security Investigations and the Bordentown City Police Department.

A detective of the Division of Criminal Justice Financial & Cyber Crimes Bureau was monitoring an online file-sharing network that is popular with child pornography offenders when he identified a computer address that was sharing child pornography. On multiple occasions, the detective successfully downloaded hundreds of items of child pornography being shared from that IP address, which was traced to Gordon’s home in Bordentown City. On April 3, 2019, detectives of the Division of Criminal Justice, assisted by agents of U.S. Homeland Security Investigations and officers of the Bordentown City Police Department, executed a search warrant at Gordon’s home, arresting him and seizing his computer devices. The devices were brought to the Division of Criminal Justice Forensics Laboratory, where a forensic examination of his laptop computer revealed over 600 images and videos of child pornography.

“By viewing and redistributing child pornography, offenders like Gordon participate in the cruel sexual exploitation of innocent children— children whose images can never be erased from the internet,” said Attorney General Grewal. “Protecting children is our highest priority, and we will continue to collaborate across all levels of law enforcement to send these offenders to prison.”

“We want offenders who download and share child pornography to know that they may face longer prison sentences based on the extent of their collections and their distribution activities,” said Director Veronica Allende of the Division of Criminal Justice. “New Jersey has tough child pornography laws, and we will continue to make strong use of them as we investigate and prosecute these offenders.”

Attorney General Grewal commended Deputy Attorney General Prasad and the detectives who conducted the investigation for the Division of Criminal Justice Financial & Cyber Crimes Bureau, under the supervision of Bureau Chief Julia Glass. AG Grewal also thanked U.S. Homeland Security Investigations and the Bordentown City Police Department for their valuable assistance.

Attorney General Grewal and Director Allende urged anyone with information about the 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 contact the New Jersey Internet Crimes Against Children Task Force Tipline at

888-648-6007

.

Seven Individuals Charged in Interstate Scheme

to Steal More Than $235,000 from Three Insurance Annuity Policies

TRENTON – Attorney General Gurbir S. Grewal and the Office of the Insurance Fraud Prosecutor today announced charges against seven individuals in an interstate scheme to steal more than

$235,000 from three insurance annuity policies.

An Ohio resident and three New Jersey residents were charged with conspiracy and theft by deception in the alleged scheme to steal money from three annuity policies issued by Lincoln Financial Group. Three others were charged with receiving stolen property in the thefts that occurred between December 2015 and September 2016.

According to documents filed in the case, the thefts occurred when Lincoln Financial Group received death claims benefit withdrawal applications from individuals purporting to be the beneficiaries of the annuity policies.

Charged in a 16-count indictment handed up by a state Grand Jury on November 14, 2019 were:

Gaetanina Nicole Zarbo, 34, of New Albany, Ohio, who was charged with three counts of second-degree conspiracy, three counts of second-degree theft by deception, and two counts of third-degree receiving stolen property.

Zuberu Sumaila, 27, of Newark, who was charged with second-degree conspiracy, second-degree theft by deception, and three counts of third-degree receiving stolen property.

Emmanuel Oppong-Dabankah, 30, of North Brunswick, who was charged with second-degree conspiracy, second degree theft by deception, and two counts of third-degree receiving stolen property.

Kojo Kumah Mensah, 27, of Newark, who was charged with second-degree conspiracy and second-degree theft by deception.

Cecilia Fynn (a.k.a. Cecilia Lemaire), 26, of Somerset, who was charged with third-degree receiving stolen property.

Tashae N. McCray, 23, of Rahway, who was charged with third-degree receiving stolen property.

Latika Busby, 37, of Columbus, Ohio, who was charged with third-degree receiving stolen property.

Second-degree crimes carry a sentence of five to 10 years in state prison and a criminal fine of up to $150,000; third-degree crimes carry a sentence of three to five years in state prison and a criminal fine of up to $15,000.

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

Deputy Attorney General Jennifer Menjivar presented the case to the Grand Jury. Detective Shawn McDonald coordinated the investigation.

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 a conviction for insurance fraud.

Kenneth Watts of Philly Headed to Prison

for Drug Conspiracy

JOHNSTOWN, Pa. – A resident of Philadelphia, Pa. has been sentenced in federal court in Johnstown to 10 years (120 months) in prison and three years’ supervised release on his conviction of violating federal narcotics laws, United States Attorney Scott W. Brady announced today.

United States District Judge Kim R. Gibson imposed the sentence on Kenneth Watts, 35.

According to information presented to the court, from March 6, 2018, through April 2, 2018, Watts and a co-defendant conspired to distribute and possess with the intent to distribute a quantity of cocaine base, heroin, and fentanyl.

Assistant United States Attorney Maureen Sheehan-Balchon prosecuted this case on behalf of the government.

Mr. Brady commended the Laurel Highlands Resident Agency of the Federal Bureau of Investigation and the Cambria County Drug Task Force for the investigation that led to the successful prosecution of Watts.

\”Shadow\” A New Resource to Help Catch Horse Racing Cheaters

TRENTON –

Attorney General Gurbir S. Grewal and the New Jersey Racing Commission have deployed a new asset in the effort to prevent cheating in the horse racing industry – a specially-trained scent-sniffing dog named Shadow.

A two-year-old black Labrador, Shadow is New Jersey’s first-ever K-9 horse racing investigator, and is already proving to be a valuable tool in deterring licensees who might seek a competitive or wagering advantage by drugging race horses.

The Racing Commission has put Shadow on regular patrol at New Jersey racetracks, including Monmouth Park, Freehold Raceway, and the New Meadowlands Racetrack. Earlier this year, Shadow made his first find, detecting the presence of a prohibited substance.

“A big part of the job for any regulatory and enforcement agency is to stay one step ahead of those who would seek to profit by breaking our laws and rules,” said Attorney General Grewal. “Shadow is an incredible asset in that respect, because cheaters in horse racing can’t cheat without using prohibited substances, and he is specifically trained to sniff them out. Shadow is helping not only to protect horses, but to preserve the integrity of the horse racing industry throughout our state.”

Racing Commission Executive Director Judith A. Nason credits Shadow with having “vastly increased the Racing Commission’s investigatory ability,” and with helping to send a strong cautionary message to would-be horse dopers.

“One very important purpose of Shadow is to deter trainers or owners from even the thought of giving a prohibited substance to a horse,” said Nason.

“We believe Shadow will prove to be an efficient, cost-effective tool in catching and penalizing licensees who cheat,” Nason said. “The Racing Commission already has four human investigators. That’s eight boots on the ground. By adding Shadow, we now have 12 boots on the ground – although four of them are paws.”

Earlier this year, Attorney General Grewal challenged the leadership of every division and commission within the Department of Law and Public Safety to look for ways to better serve the public by identifying new ways to collaborate with each other.

As part of that process, the Racing Commission identified the need for adding a trained, scent-sniffing dog that could detect the presence of substances unique to horse racing that cannot lawfully be possessed by anyone but a licensed veterinarian.

The New Jersey State Police partnered with the Racing Commission in this effort and through its Canine Academy found a two-year-old black Labrador retriever for the Racing Commission and, following a Racing Commission naming contest, the dog became officially known as “Shadow.”

With Investigator Joseph Sczerbowicz manning the leash, Shadow now spends Monday through Thursday patrolling racetracks and licensed farms to ferret out banned chemicals that might be concealed in stalls or barns – sometimes in places where a routine inspection might not uncover them, such as locked drawers, toolboxes or even piles of hay. And on race days – Fridays and Saturdays – Shadow is deployed at New Jersey’s thoroughbred and Standardbred racetracks.

For investigative reasons, Executive Director Nason will not disclose details concerning what substances Shadow is able to detect. However, she confirms that he is trained to find a host of banned chemicals known to be used by cheaters, as well as related paraphernalia such as syringes and hypodermic needles.

“The people hiding drugs and needles have always had an intrinsic advantage, because it’s easier to conceal these things than to locate them,” said Nason. “But Shadow could turn out to be a true game-changer. Not only can he search a lot of territory very quickly, he can also detect banned substances in hiding places where we humans might not find them.”

####

State Adopts NEW Rules for Fantasy Sports

NEWARK

– Attorney General Gurbir S. Grewal and the Division of Consumer Affairs (Division) announced today that the Division has adopted its first set of rules for fantasy sports activities in New Jersey, including rules designed to protect children.

The new rules, adopted this month, implement a 2017 law requiring fantasy sports operators to obtain permits from the Division and comply with other requirements to protect participants in New Jersey’s new online sports betting frontier.

The new rules require fantasy sports operators to adopt procedures to ensure that no one under the age of 18 participates in fantasy sports activities. Fantasy sports operators also are prohibited from advertising in publications or media aimed exclusively at minors, at K-12 schools and at sports venues used exclusively for K-12 student sports activities. In addition, if an account is found to have been created by a minor, any money held in the account must be refunded.

The Division also took regulatory steps to protect other fantasy sports participants, including limiting the risk that fantasy sports participants will go into debt as a result of their fantasy sports activities. To that end, fantasy sports operators may not extend credit to any participant. Fantasy sports operators also must offer individuals the ability to restrict themselves from participating in fantasy sports activities if they so choose.

Other consumer protections in the new rules include a requirement that fantasy sports operators maintain adequate procedures for processing complaints from participants, and restrictions on participation by employees, officers, directors, and owners of fantasy sports operators. Operators also are required to maintain appropriate reserves so that they will be able to satisfy their financial obligations to participants.

The new rules will supplement statutory requirements that the Division has already begun enforcing.  The Division

announced

its first action to enforce the fantasy sports law in August 2019, when the Division entered into a consent order with SportsHub Games Network, Inc.  SportsHub agreed to pay a $30,000 civil penalty after the Division found that the company unlawfully operated a fantasy sports site without a permit, and failed to clearly and conspicuously disclose that the company collects personal information from consumers’ social media accounts and shares it with third parties.  The company also agreed to modify its business practices.

The rule adoption notice, dated December 2, 2019, is available

here

. The original proposal, dated November 19, 2018, is available

here

.