Earlier today, the Union County Homicide Task Force and the Clark Police Department  issued an arrest warrant in the homicide of Joseph Galfy, Jr., which occurred in Clark, N.J. on May 12, 2013.

The  main suspect in the case was Caleb Lawrence McGillvary, a homeless man who was made famous on the internet as the “Kai the Hatchet Wielding Hitchhiker”.

McGillvary is also known as Kai Lawrence, Caleb Kai Lawrence and Kai Nicodemus.

Galfy was found inside his home on Starlite Drive on May 13, 2013 after

officers were called to the residence for a welfare check. An autopsy performed the following day determined that Galfy died as a result of blunt force trauma, said Romankow.

Around 6:30 pm tonight, Lawrence was arrested at the Greyhound Bus Terminal in Philadelphia, by members of the Philadelphia Police Department.

McGillvary has been charged with the homicide of Joseph Galfy, Jr.   He will be processed in Philadelphia and returned to New Jersey in the coming days. His bail was previously set at $3 million and he will be lodged in the Union County Jail in Elizabeth.

“I am grateful for the overwhelming response and dedicated effort by the public and law enforcement that led to this arrest,” said Union County Prosecutor Theodore J. Romankow. “I believe that everyone is a little safer with this person off the streets.”

Investigators learned earlier in the day, McGillvary had cut his hair in an attempt to alter his appearance, and was  seen at a light rail station in Haddonfield.

The Union County Homicide Task Force worked with local, state, and Federal officials to locate McGillvary.

Altarik Cullun, 27, of Neptune, pleaded guilty Friday to one count of animal cruelty in front of Asbury Park Municipal Court Daniel J. DiBenedetto.

Cullun was sentenced to pay over $2000 in fines and restitution.

The charges arose from an incident on Dec. 15, 2012, when Cullun was involved in an altercation with the dog’s owner in the 1400 block of Mattison Avenue in Asbury Park. At some point during the altercation a knife was produced and the dog came to the aid of its owner when Cullun stabbed the dog in the chest.

The dog, an American Staffordshire Terrier, was transported to the Popcorn Park Zoo, in Lacey, where the dog underwent emergency surgery, Amato explained.

Amato credited the veterinary staff at Popcorn Park Zoo with saving the dog’s life.

Compiled by the Ocean Signal

BEACHWOOD - The Ocean County Sheriff’s Office and Beachwood Police Department reported that an 11-year-old male stated an unknown white male attempted to abduct him at approximately 2:20 pm today as he walked home from school. The victim described the suspect as approximately 6’2″ tall with a thin build, being bald and clean shaven and wearing a white t-shirt and black leather jacket at the time of the incident.
The vehicle the suspect operated was a fairly new model black Audi 4-door sedan bearing an unknown yellow N.J. registration and departing in an unknown direction.
Anyone with information regarding this case is asked to contact Beachwood Police Dsg. Glen DeMarco at (732) 286-6000 x191 or Det. James Steele of the Ocean County Prosecutor’s Office at (732) 929-2027 x2432.
Anyone who spots the suspect should not approach and should call 9-1-1 immediately.
The attached composite sketch of the subject originated with the Toms River Township Police Department and was provided by the Ocean County Sheriff’s Office through their Ocean County 911 page.

NEWARK – Attorney General Jeffrey S. Chiesa and the New Jersey Division of Consumer Affairs have filed suit against the operators of a purported Superstorm Sandy charity, alleging the defendants unlawfully misled the public by diverting donated funds into their personal accounts, misleading donors with false claims about the ways donations would be used, falsely claiming that donations are tax-deductible, and otherwise deceiving the public in violation of New Jersey’s charity registration and consumer protection laws.

“New Jersey’s law keeps charities honest, by requiring them to register with the State and provide clear, truthful information when soliciting donations from the public,” Attorney General Chiesa said.  “This organization told the State it does not pay its executives, but our investigators found a paper trail reflecting thousands of dollars being transferred into the individual defendants’ personal bank accounts.  Meanwhile, less than one percent of the money they raised, has allegedly been paid out to help victims of Sandy. New Jersey and the Attorney General’s Office have fought hard against alleged scammers in the wake of Sandy, and we will not permit profiteers to deceive the public with deceptive appeals for charitable donations.”

Since Superstorm Sandy devastated parts of New Jersey, the Hurricane Sandy Relief Foundation (HSRF) and its operators, John Sandberg and Christina Terraccino, have solicited donations through a website in which HSRF falsely claims to be a 501(c)(3) tax-exempt organization and represents that “(a)ll of our donations go towards food, clothing, supplies, aid in rescue and cleanup efforts, and the future rebuilding of communities and lives destroyed by Hurricane Sandy.”  As of last month, the organization had raised more than $631,000 in monetary donations from at least 1,999 persons – but has disbursed less than one percent of that amount to Sandy-related causes, according to records obtained by the State.

The State’s lawsuit, filed in Bergen County Superior Court by the Division of Law, accuses the defendants of multiple violations of New Jersey’s Charitable Registration and Investigation (CRI) Act, Charities Regulations, Consumer Fraud Act, and Nonprofit Corporation Act.  The State asks the Court to order the defendants to stop soliciting donations, shut down their website, disgorge and repay all funds and property acquired by violating the law, and pay full civil penalties for every violation, among other relief.  Under the CRI Act and Consumer Fraud Act, a first violation is subject to a civil penalty of up to $10,000, and subsequent violations are subject to penalties of up to $20,000.  Every solicitation of donations made while HSRF is not registered, and/or made through false or misleading statements, is considered a separate violation.

“The Division of Consumer Affairs identified certain red flags about this purported charity in late December, and immediately commenced an investigative inquiry.  Shortly thereafter, we reached out to this group, told them to provide extensive documentation about their fundraising and activities, and met with HSRF’s operators at our headquarters in Newark to address the myriad concerns we had about their activities,” Acting Director Kanefsky said.  “After a thorough investigation revealed multiple and ongoing violations of state law, we are now taking action to ensure that all of the money donated is used properly, in a manner consistent with the representations made to the public.”

The State’s lawsuit alleges:

Questionable Money Transfers
 
Financial records indicate the defendants have transferred more than $13,000 in public donations, from HSRF’s bank and PayPal accounts, into Sandberg’s and Terracino’s own personal accounts.  Records show that the transfer of HSRF funds into Terracino’s personal bank account made it possible to pay for personal expenses including nearly $8,000 in payments to a credit card company.

Records also revealed that, between November and January, the defendants paid a total of more than $4,500 from HSRF’s bank account to merchants such as the Apple Online Store, the Vivo Tapas Lounge in Newark and other restaurants, two supermarkets, Christmas Tree Shops, and a home heating oil delivery service in the Sparta area where Sandberg and Terraccino reside.  The defendants also transferred more than $3,000 from HSRF’s PayPal account to “Jezel Yepez,” an alias for Anthony Yepez, despite the defendants’ representations to the Division that he was a “volunteer” for the organization.

Despite these payments, the defendants in February applied for State registration as a charity – and claimed in their application that HSRF does not provide any compensation to its officers, directors, trustees, or executive staff.  Their application also allegedly under-reported the amount HSRF had raised, by approximately $39,000.

Deceptive Claims to Donors

The State’s Verified Complaint also notes that, though HSRF claims all donations provide “immediate” relief to Sandy victims, the group has only given out $1,650 in gift cards during the three and a half months of its existence – an amount representing less than one percent of the $631,000 HSRF has raised in donations.

Furthermore, the State notes that HSRF has not obtained 501(c)(3) status from the IRS, despite indicating on HSRF’s website, Facebook, and/or Twitter pages that the organization has 501(c)(3) status, thus misleading the public by stating donations to HSRF are tax-deductible.

Using Another Charity’s Name to Solicit Funds

The “Donations” portion of the HSRF website includes a page titled “Hurricane Sandy New Jersey Relief Fund,” which states that “Hurricane Sandy New Jersey Relief Fund donations go towards cleanup efforts, and the future rebuilding of communities and lives destroyed by Hurricane Sandy.”

In reality, however, the Hurricane Sandy New Jersey Relief Fund, Inc. is the name of a separate charitable organization that is entirely unaffiliated with HSRF.  Unlike HSRF, the actual Hurricane Sandy New Jersey Relief Fund is duly registered with the Division of Consumer Affairs to solicit charitable donations in New Jersey, and is registered with the IRS as a 501(c)(3) charitable organization.

The portion of the HSRF website that references the “Hurricane Sandy New Jersey Relief Fund” includes a link to a January 14 Star-Ledger article about an event in which that organization donated winter clothing to hundreds of Sandy victims.  The State’s lawsuit notes that HSRF was not involved in that event, and the article’s inclusion on HSRF’s website creates the mistaken impression that the two groups are related.

That same “Donations” page on the HSRF website includes a PayPal link that encourages donors to make monetary contributions online.  However, all contributions made via the PayPal link go to HSRF, not the Hurricane Sandy New Jersey Relief Fund.

Deceptive Reference to Corporate “Sponsors”

The HSRF website identifies “sponsors” including Hanes Brands and CSX Corporation.  The Division of Consumer Affairs contacted both businesses, and learned that neither Hanes nor CSX has an actual relationship with HSRF or had authorized HSRF to use the corporation’s names and logos.

A Hanes representative stated the company attempted to contact HSRF and ask why the organization’s website uses the Hanes logo.  A CSX representative noted that CSX had explicitly instructed HSRF to remove the corporation’s logo from its website, and that its continued use of the CSX logo would constitute willful trademark infringement.

Failure to Register as a Charity

Under New Jersey’s CRI Act, all organizations that solicit charitable donations in the State must register with the Division of the Consumer Affairs, and re-register annually.  Registered charities must provide detailed information about their operations and fundraising activities. They must detail the charity’s annual income and expenses, including the amount spent each year on actual charitable programs, as opposed to the amount spent on fundraising or management costs.

Certain religious and educational organizations, and charities that raise less than $10,000 in public donations during a fiscal year, are exempt from the registration requirement.  The State’s complaint notes that HSRF is not an exempt organization, although by January 15, 2013 it had collected at least $631,000 in donations.

The Division of Consumer Affairs encouraged the defendants to register as a charity with the Division’s Charities Registration Section.  After operating for more than two months without even attempting to register, the defendants submitted an incorrect and incomplete registration form on January 4. A Division representative then contacted the defendants again, and directed them to the Division’s website for the correct form as well as instructions and additional information on how to apply for registration.  The defendants on February 8 submitted a registration statement that was incomplete and contained inaccurate information, including the alleged under-reporting of the charity’s income by nearly $39,000.

The Division notified HSRF of the deficiencies in its latest application form, but the organization to date has failed to respond.

The State’s lawsuit notes that HSRF’s solicitation of funds, while it is not registered, constitutes an ongoing violation of the CRI Act and Charities Regulations, and prevents potential donors from being able to obtain clear and accurate information about the organization’s activities.

Chief Investigator Laurie Goodman, of the Division of Consumer Affairs’ Office of Consumer Protection, conducted this investigation.  Deputy Attorney General Lorraine Rak, Chief of the Consumer Fraud Prosecution Section, and Deputy Attorney General Kourtney J. A. Knop represent the State in this action.

Consumers: “Investigate Before You Donate”

The Division of Consumer Affairs, through its “Investigate Before You Donate” campaign, encourages New Jersey consumers to learn as much as possible about any charity before deciding to make a donation. Consumers should:

• Find out whether the charity is registered in New Jersey, or is exempt from having to register. (Certain religious and educational organizations, and charities whose annual income includes less than $10,000 in public contributions and fundraising, are exempt from having to register with the State.)

• Find out how much the charity spent during recent fiscal years on program costs, management costs, and fundraising.

• Learn about the charity’s stated mission.

Consumers may obtain information about a charity in several ways. They can ask the charity itself (reputable charities encourage you to do so), or visit the charity’s website.

Consumers can also obtain this information from the New Jersey Division of Consumer Affairs. Visit the Division’s Charities Registration page; call the Division’s Charities Hotline at 973-504-6215 during regular business hours; or use the Division’s free “New Jersey Charity Search” smartphone app.

Consumers who believe they have been cheated or scammed by a business, or suspect any other form of consumer abuse, can file a complaint with the New Jersey Division of Consumer Affairs by visiting its website or by calling 1-800-242-5846 (toll free within New Jersey) or 973-504-6200.

Follow the Division of Consumer Affairs on Facebook, and check our online calendar of upcoming Consumer Outreach events.

Jose Luis Salguero Bedoya, also known as Jose Salguero, 36, of Elizabeth and Verona, N.J.; Paul Chemidlin, Jr., 41, of Morganville, N.J.; Delio Coutinho, 50, of Colonia, N.J.; Joseph DiValli, 44, of Jackson, N.J.; Christopher Ju, 26, of East Brunswick, N.J.; Carmine Fusco, 44, of East Hanover, N.J.; Jose Martins, 31, of Newark, N.J.; Yazmin Soto-Cruz, also known as Yazmin Soto, 32, of Elizabeth, N.J.; and Kenneth Sweetman, 32, of Lyndhurst and Nutley, N.J., were arrested this morning by FBI special agents.

From March 2011 to July 2012, Salguero, Chemidlin, DiValli, Fusco, Martins, and Sweetman submitted false mortgage loan applications to mortgage lenders for a property on Smith Street, Elizabeth. The defendants submitted gift letters to mortgage lenders that falsely stated that the borrower was obtaining the funds necessary to close the real estate transaction from a relative or friend in the form of a gift, when the funds used as the borrowers’ down payments were actually provided by Salguero. The defendants also submitted false appraisal reports in order to support inflated property values and therefore obtain mortgage loans in larger amounts.

The defendants formed limited liability companies (“LLCs”) in the names of companies similar to those of licensed title companies in order to open bank accounts in the LLC names to conceal the defendants’ identities and to control the receipt and distribution of fraudulently obtained mortgage loan proceeds. They submitted fraudulent documents that misrepresented Salguero’s ownership in various properties and the disposition of mortgage loan proceeds related to various transactions. The defendants then distributed fraudulently obtained mortgage loan proceeds to themselves and others and concealed those distributions by failing to include them on the HUD-1 Settlement Statements.

As a result of the mortgage fraud schemes described in the two Complaints, which involved at least 15 properties, the defendants and others defrauded financial institutions out of approximately $10 million.
The defendants played different roles in the schemes. Salguero was a real estate investor who, along with his girlfriend, Soto, provided much of the funds used by the defendants to perpetuate their fraudulent schemes. Coutinho was a loan officer at a Northern New Jersey mortgage brokerage company; he submitted false documents in support of the schemes.
Chemidlin provided fraudulent real estate appraisals for the defendants although he was not a licensed real estate appraiser. DiValli was a loan officer at a Northern New Jersey mortgage brokerage company who also submitted false documents in support of the schemes. Ju negotiated the fraudulent short sale real estate transactions. Fusco and Sweetman conducted fraudulent real estate closings for the defendants although they were not licensed attorneys or title agents. Martins was a bank employee who facilitated certain financial transactions for the defendants.

Attorney General Jeffrey S. Chiesa and the New Jersey Division of Consumer Affairs today announced a settlement with Kmart in which the retail giant will pay $302,500, donate $25,000 worth of infant formula to charity, pay for continued unannounced state inspections, and implement meaningful remedial measures to inspect its merchandise, after 19 Kmart stores in New Jersey were found to have sold or offered for sale expired infant formula and non-prescription medications.

Inspections by Division of Consumer Affairs investigators found a total of 257 packages of infant formula and/or non-prescription medications that were from 9 months to 29 months past the expiration date,  but still available for purchase on the shelves at the 19 stores.  Investigators purchased a total of 68 expired items.  The stores are located in Atlantic, Bergen, Burlington, Camden, Cape May, Essex, Gloucester, Mercer, Monmouth, Morris, Ocean, Passaic, and Somerset counties; the specific stores are identified in the attached Consent Order.

New Jersey’s Consumer Fraud Act expressly prohibits the sale of any infant formula or non-prescription drug subject to expiration dating requirements by the U.S. Food and Drug Administration, if the expiration date has passed.

Under the settlement, Kmart will submit to several measures intended to prevent its stores from again selling infant formula or medication that has expired.

Kmart will appoint two senior level management employees for 18 months to serve as compliance liaisons with the Division.  These employees will conduct unannounced inspections of Kmart’s New Jersey stores to identify expiring and expired products, and review the stores’ compliance with Kmart’s policies regarding the expiration dates of infant formula and non-prescription medication.  At least 20 of Kmart’s New Jersey stores will be inspected each quarter.  The compliance liaisons will then submit quarterly reports to the Division of Consumer Affairs that will include any findings or resolutions, and a full explanation about any expired products that may be found on store shelves.  They will also conduct scheduled conference calls with representatives of the Division of Consumer Affairs.  At the end of the 18-month period they will submit a final certified report that, among other things, will compile all instances in which expired items were identified at the stores, any actual or recommended changes to Kmart’s policies, and an explanation of why such changes were or should be made.

Kmart will also maintain two “date code specialists” in each New Jersey store, for at least the duration of the 18-month period.  Those employees will, among other things, inspect all date-coded items on a written rotational calendar.  Any breaches they find will be investigated by supervisory personnel within the store, and reviewed by a compliance liaison.

Pursuant to the settlement, Kmart will also provide funding for random, unannounced inspections of its New Jersey stores by the Division of Consumer Affairs, continuing for one year.  The Division retains the authority to perform further unannounced inspections as the Division determines necessary.

“Our unannounced inspections revealed expired infant formula and non-prescription medications at more than half of all Kmart stores in New Jersey, including every region of our state.  Some products were more than two years past the expiration date,” Attorney General Chiesa said.  “This is unacceptable, and a clear violation of our consumer protection laws.  This consent order includes a plan by which we will continue to hold accountable every Kmart store in New Jersey, monitor their compliance, and demand results if any store is found to repeat this mistake.”

Also under the settlement, Kmart will pay a total of $302,500 to the State, including $255,000 in civil penalties and the remainder to reimburse the State’s attorneys’ fees and investigative costs.  Kmart will also donate $25,000 worth of infant formula, with at least 21 days remaining before its expiration date, to one or more charities that provide direct assistance to infants and their parents or legal guardians.

“When parents buy infant formula and over-the-counter medication for their children, they have the absolute right to receive formula that has not expired, and fully lives up to its advertised nutritional content.  When patients buy medication, they expect that it has not expired, and will properly address their symptoms without unduly posing a new health risk,” Eric T. Kanefsky, Acting Director of the New Jersey Division of Consumer Affairs, said.  “This is a no-brainer.  The fact that we found this problem at Kmart stores throughout the state indicated a systemic problem at Kmart that we have addressed through this settlement.”

The FDA recognizes infant formula as often being “the sole source of nutrition by a vulnerable population during a critical period of growth and development,” and requires that it have an expiration date.  Infant formula consumed beyond its expiration date increases the risk that it may not contain the nutrient level required for proper infant development.

Over-the-counter drugs have unique formulations that consist of inactive and active ingredients geared to treat specific diseases.  Medications consumed beyond the shelf life indicated by manufacturers, may have undergone chemical changes, may be less effective, and may pose potentially serious health consequences.  The FDA mandates that all medication have expiration dates to help ensure the sale and usage of medication occurs within the drug’s shelf life.

Deputy Attorneys General Patricia Schiripo and Alina Wells, of the Division of Law, represented the State in this action.  Investigator Oscar Mejia in the Office of Consumer Protection conducted the investigation.

Consumers who believe they have been cheated or scammed by a business, or suspect any other form of consumer abuse, can file a complaint with the New Jersey Division of Consumer Affairs by visiting its website or by calling 1-800-242-5846 (toll free within New Jersey) or 973-504-6200.

Follow the Division of Consumer Affairs on Facebook, and check our online calendar of upcoming Consumer Outreach events.

On November 21, 2012 a Brick resident responded to police headquarters to file a theft report. She stated that her home, located in Brick, had been flooded with approximately three feet of water from Hurricane Sandy. She hired Puro Clean to do the remediation and cleanup of her residence. During the clean up, she discovered that a 14k gold and diamond ring and her Apple iPad were missing.

The owner of the Puro Clean was notified and he confirmed that Jenkins was a new employee that he just hired as a result of his companies workload due to Hurricane Sandy.

After checking her home further, the victim found numerous other items, mostly jewelry, valued at approximately $7500.00 to be missing.

As a result of his investigation, Detective Robert Shepherd has charged Jamar Jenkins with theft and a warrant has been issued for his arrest in the amount of $20,000.00. Puro Clean cooperated in the investigation.   At the time of this release, Jenkins is still wanted.  Anyone with information as to the whereabouts of Jenkins is urged to contact the Brick Township Police Department at 732-262-1100 or Detective Shepherd at 732-262-1120.

Chief Nils Bergquist said that there have been very few thefts attributed to the vulnerability of people affected by Sandy.  This department is committed to preventing those crimes through every reasonable means and will relentlessly pursue those who victimize anyone affected by the storm.

Attorney General Jeffrey S. Chiesa announced that a former investigator with the New Jersey Division of Taxation pleaded guilty today to using his access to taxpayer accounts in state computers to steal a total of $6,630.

Joseph Stack, 61, of TomsRiver, pleaded guilty to third-degree theft by unlawful taking before Superior Court Judge Mark J. Fleming in MercerCounty.  The charge was contained in an Aug. 28, 2009 state grand jury indictment obtained by the Division of Criminal Justice.  Stack was charged as a result of an investigation by the New Jersey State Police Official Corruption Bureau and the Division of Taxation’s Internal Security Unit.

Deputy Attorney General Pearl Minato prosecuted the case for the Division of Criminal Justice Corruption Bureau. She took the guilty plea with Deputy Attorney General Victor Salgado.  Stack is scheduled to be sentenced on March 12.

Under his plea agreement, the state will recommend that Stack be sentenced to three years of probation, conditioned upon him serving 364 days in the county jail.  He must pay $6,630 in restitution and will be permanently barred from public employment in New Jersey.

“This former state investigator, who was responsible for detecting and investigating tax fraud, instead took advantage of his access to state computer records to commit fraud himself,” said Attorney General Chiesa. “We have zero tolerance for such breaches of trust by public officials.”

“We will continue to work diligently with our partners in the New Jersey State Police and other government agencies to uncover and bring strong prosecutions against those who engage in official misconduct,” said Director Stephen J.Taylor of the Division of Criminal Justice. “The Division of Taxation deserves great credit for its vigilance in this case.”

In pleading guilty, Stack admitted that between Aug. 1, 2005 and Aug. 31, 2006, he used his access to computer records of the Division of Taxation to steal money by making three unauthorized transfers of funds from the business accounts of two taxpayers – one deceased and one living – into the taxpayer accounts of his own deceased mother and a living relative.

 

The transfers totaled $6,630, including transfers of $6,184 and $300 into his deceased mother’s account from the business account of the other deceased taxpayer, and a transfer of $146 into the account of Stack’s living relative from the business account of the living victim.  Stack prepared state income tax returns on behalf of his deceased mother and the other relative claiming that the amounts transferred represented taxes that they pre-paid.

The investigation originated as a result of an audit performed by the Division of Taxation’s Inheritance Tax Audit Unit.  Stack’s employment with the Division of Taxation was terminated in March 2009 as a result of the investigation.

The investigation was led for the State Police Official Corruption Bureau by Detective Glenn Sefick and Detective Sgt. 1^st Class Myles A. Cappiello.  The investigation was led for the Division of Taxation’s Internal Security Bureau by Investigators Carolyn Fox and Ken Johnson.

Ocean County Prosecutor Marlene Lynch Ford announced today that  guilty pleas had been entered by two defendants, Denise Manco (DOB 3-29-77) and Rondell F. Moore (DOB 7/22/75), who had been indicted and charged with  manslaughter in connection with the death of their 11 month-old son in Seaside Heights in 2008.  Prosecutor Ford said:

“This matter started as an investigation into the untimely and unexplained death of an 11 month old baby, referred to in this matter as “Baby JM”, who was the son of the defendants, Denise Manco and Rondell Moore.

“On Friday, September 12, 2008, the Seaside Heights Police and emergency medical staff responded to a call in reference to an unresponsive child.  The child was transported to CommunityMedicalCenter and was later pronounced dead.  As is the usual procedure in such unexplained deaths, an autopsy and toxicology tests were performed on the child.  The autopsy was inconclusive, but the toxicology results showed the presence of heroin in the system of the child.”

“The investigation continued without a satisfactory resolution of the question of how this child ingested the heroin which caused his death.  I would commend Detective Steve Korman of the Seaside Heights Police Department and Detective Sergeant Carlos Trujillo-Tovar of the Ocean County Prosecutor’s Office for their diligence in pursuing this investigation into the death of Baby JM.

“In October 2012, we developed new and credible information which indicated that ingestion of the heroin by the child was not accidental but rather occurred as a result of an intentional act or acts by the parents.

“The matter was presented to the Grand Jury and on September 26, 2012, the Ocean County Grand Jurors returned their indictment charging the defendants, Denise M. Manco and Rondell F. Moore, with manslaughter in the second degree, for recklessly causing the death of Baby JM;  child endangerment, a second degree offense, and possession of CDS, a third degree offense.

“On Monday, January 7, 2013, both defendants, Denise Manco and Rondell Moore,  appeared before the Honorable Rochelle Gizinski, Judge of the Superior Court, and entered guilty pleas to one county of second degree manslaughter for their roles in the death of Baby JM in September of 2008.  In setting forth on the record the factual

basis for entering these pleas, both defendants admitted to placing heroin in the baby’s mouth and rubbing it on the baby’s gums because he was teething.  This finding was consistent with the autopsy and toxicological results conducted and reviewed by the medical examiner, Dr. Hydow Park, who determined that the baby died from acute heroin intoxication.

“Sentencing for both defendants is scheduled before Judge Gizinski on Friday, February 22, 2013.

“As a result of the guilty pleas, the state agreed to dismiss the child endangerment and drug possession charges.  Under the sentencing provisions of the New Jersey Code of Criminal Justice, each defendant is subject to a sentence of up to ten (10) years in New Jersey State Prison.  In addition, both defendants are subject to the No Early Release Act which mandates that each defendant serve eighty-five percent (85%) of the sentence imposed before they can be considered for release on parole.

“At the time of sentencing, Rondell Moore also admitted guilt to an unrelated charge of possession of a controlled dangerous substance with the intent to distribute, arising out of an unrelated September 2012 arrest,” concluded Prosecutor Ford.

The case is being prosecuted by Senior Assistant Prosecutor Michael R. Weatherstone. Detective Steve Korman from the Seaside Heights Police Department, Detective Sergeant Carlos Trujillo-Tovar from the Ocean County Prosecutor’s Office and Detective Eric Skieczius from the Ocean County Sheriff’s Department Criminalistics Investigations Unit were the lead investigators on the case.

Eliyahu Weinstein, a/k/a “Eli Weinstein,” a/k/a “Edward Weinstein,” a/k/a “Eddie Weinstein,” 37, of Lakewood, N.J., pleaded guilty before U.S. District Judge Joel A. Pisano in Trenton federal court to two counts of the Indictment pending against him: one count of conspiracy to commit wire fraud, and one count of money laundering. Weinstein’s trial on these charges was scheduled to start Jan. 7, 2013. Weinstein’s co-defendant, Vladimir Siforov, is charged in the Indictment with three counts of wire fraud and remains a fugitive.

Under the terms of the plea agreement, which Judge Pisano accepted today, Weinstein may be sentenced to up to 25 years in prison and up to three years of supervised release. He must also provide a full accounting of all monies paid to him during the period covered by the Indictment. Weinstein has also agreed to forfeit $2 million in seized property and pay restitution to the victims of his offenses. Sentencing is scheduled for April 2, 2013.

“Weinstein shamelessly exploited investors’ trust, using doctored documents for properties he didn’t own – including in a town that doesn’t exist – and continued to commit crimes while out on bail,” U.S. Attorney Fishman said. “With false promises of sound investments and charitable donations, he stole $200 million, spending freely on fancy cars, jewelry and gambling trips. And in using victims’ money to collect Judaica, Weinstein robbed from his own community’s present to stockpile artifacts of its past.”

FBI Acting Special Agent in Charge David Velazquez said: “Mr. Weinstein came to the wrong conclusion when he assumed he would never be held accountable for his criminal activity. His greed got the best of him and he will pay a heavy price before the law for the frauds he committed.”

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

From June 2004 through August 2011, Weinstein orchestrated – with the help of Siforov and others – a real estate investment fraud scheme, headquartered in Lakewood, that has resulted in multi-million dollar losses to victim investors.

To induce victims to invest, Weinstein and others made various types of materially false and misleading statements and omissions. Weinstein and others told victims that Weinstein’s inside access to certain real estate opportunities allowed him to buy a particular piece of property at a below-market price. Weinstein and others also told victims that their money would be used to purchase a specific property, and the property would be quickly resold – or “flipped” – to a third-party purchaser that Weinstein had lined up. Victims were also told that the victims’ money would be held in escrow until the closing of a purported real estate transaction.

Weinstein bolstered his lies by creating, and causing to be created, various types of fraudulent documents, including “show checks,” which Weinstein led victims to believe represented Weinstein’s investments in specific transactions, but which in fact were never deposited; forged checks, which had actually been negotiated for small amounts, but which Weinstein altered so as to appear worth millions of dollars; and various kinds of phony legal documents, including mortgages, and deeds.

Weinstein and others initially targeted victims from the Orthodox Jewish community to which Weinstein belonged, exploiting his standing in, and knowledge of, the customs and practices of this community to further the scheme. This type of illegal activity is commonly referred to as “affinity fraud,” and refers to investment scams that prey upon members of identifiable groups, such as religious or ethnic communities, the elderly, or professional groups.

The perpetrators of affinity fraud scams frequently are, or pretend to be, members of the group, and they exploit the trust and friendship that exist in groups of people who have something in common.

Weinstein abused the Orthodox community’s practice of engaging in transactions based on trust, and without paperwork, to obtain money from his victims without substantial written records. He would then falsely represent that specific real estate transactions existed, that the victims’ monies were used to fund those transactions, or that the victims’ profits from those transactions were being “rolled” into new investments. Weinstein also used a portion of the fraud’s proceeds to fund “charitable and religious contributions,” which he used to elevate his reputation within the Orthodox Jewish community.

By 2010, Weinstein had tarnished his reputation in the Orthodox Jewish community due to the massive losses caused by his fraud scheme and found it difficult to obtain more money to further the scheme from within the Orthodox Jewish community. In April 2010, Weinstein and others began soliciting victims from outside of the Orthodox Jewish community, whom they defrauded out of additional millions of dollars.

Weinstein also used millions of dollars fraudulently obtained from his victims to fund his own lavish spending, including millions of dollars worth of antique Judaica and other artwork; a multi-million dollar collection of jewelry and watches; gambling in Las Vegas and elsewhere; and Weinstein’s personal expenses, including millions of dollars in credit card bills, millions of dollars in legal bills, and luxury car-lease payments.

U.S. Attorney Fishman credited special agents of the FBI, under the direction of Acting Special Agent in Charge David Velazquez in Newark, for the investigation leading to today’s guilty plea. He also credited agents of the IRS – Criminal Investigation, under the direction of Acting Special Agent in Charge Shantelle P. Kitchen, for their important contributions to the investigation.

The charges and allegations against Siforov are merely accusations, and he is considered innocent unless and until proven guilty.