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John Carpenter, 41, was charged with child endangerment, sexual assault, manufacturing child exploitation material, and subjecting two young children to sexual abuse, Acting Essex County Prosecutor Theodore N. Stephens, II, said.
Carpenter, of Lebanon, Missouri, was identified as a suspect following an investigation that began in South Carolina, where authorities found videos of the sisters engaged in sexual acts that may have been sent from Newark, Stephens said.
Carpenter is also facing federal child pornography charges. He was being held without bond in Missouri.
The investigation was ongoing, Stephens said.
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