New Jersey Department of Corrections Uncovers Alleged Contraband Smuggling and Money Laundering Scheme

New Jersey Department of Corrections Uncovers Alleged Contraband Smuggling and Money Laundering Scheme
Investigation at South Woods State Prison results in charges against six individuals in alleged contraband and money laundering scheme
TRENTON, N.J. – A New Jersey Department of Corrections investigation uncovered an alleged contraband smuggling and money laundering scheme involving a Senior Correctional Police Officer, current and former incarcerated persons and civilians, resulting in criminal charges against six individuals.
"Contraband directly threatens the lives and safety of everyone within correctional facilities," said Commissioner Victoria L. Kuhn, Esq. "Introducing prohibited items puts both staff and the incarcerated population at risk. This successful investigation by the South Woods State Prison Special Investigations Division reflects a total commitment to maintaining a safe, secure, and stable environment."
In September 2024, investigators assigned to the South Woods State Prison Special Investigations Division received information alleging that a Senior Correctional Police Officer was introducing contraband into the secured perimeter in exchange for financial compensation. Investigators launched an investigation that uncovered an alleged conspiracy involving current and former incarcerated persons and civilians. Following the completion of the investigation, the Cumberland County Prosecutor's Office authorized criminal charges on June 1, 2026.
"This investigation combined intelligence gathering and coordination with our law enforcement partners to identify and disrupt an organized contraband smuggling operation," said Timathy Gonzalez, Chief Investigator of the Special Investigations Division. "Contraband investigations often extend beyond facility walls and involve complex networks of incarcerated persons, former incarcerated persons, civilians, and others working to circumvent security measures. SID investigators remain focused on identifying those networks and holding those responsible accountable."
Senior Correctional Police Officer Kenneth Stinson, 39, Penns Grove, NJ, was charged with N.J.S. 2C:21-25(a) - Money laundering, a 3rd degree offense, and N.J.S. 2C:29-6B - Introduction of Contraband. Mr. Stinson has been suspended effective March 25, 2025.
Stinson is alleged to have conspired with several former and current incarcerated persons, as well as civilian associates, in multiple transactions involving the introduction of contraband into South Woods State Prison.
Five additional individuals were charged in connection with the investigation:
- Rashawn Bond, 49, Leesburg, NJ - Money Laundering NJSA 2C:21-25(c) (3rd degree); and Introduction of Contraband (N.J.S. 2C:29-6B) (PDP)
- John Tracy, 50, Glassboro, NJ - Money Laundering NJSA 2C:21-25(c) (3rd degree); and Introduction of Contraband (N.J.S. 2C:29-6B) (PDP)
- James Gallichio, 42, Parlin, NJ - Money Laundering NJSA 2C:21-25(c) (3rd degree); and Introduction of Contraband (N.J.S. 2C:29-6B) (PDP)
- Desiree Tracy, 52, Glassboro, NJ - Money Laundering NJSA 2C:21-25(b)(2)(a) (3rd degree); and Introduction of Contraband (N.J.S. 2C:29-6B) (PDP)
- Melanie Posey, 53, Conyers, GA - Money Laundering NJSA 2C:21-25(b)(2)(a) (3rd degree); and Introduction of Contraband (N.J.S. 2C:29-6B) (PDP)
Contraband fuels criminal activity, threatens institutional security, and places staff and incarcerated persons at risk. The New Jersey Department of Corrections continues to employ intelligence-driven investigations, financial analysis, and strong law enforcement partnerships to identify, disrupt, and prosecute individuals involved in contraband smuggling schemes.
The charges are accusations. All defendants are presumed innocent unless and until proven guilty in a court of law.
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About New Jersey Department of Corrections (NJDOC)
The mission of the New Jersey Department of Corrections is enhancing public safety through rehabilitation, accountability and reentry. For more information, visit: NJDOC.gov.
