Eastern District of New York
Press releases recorded for this federal judicial district.
Long Island Businessman Pleads Guilty in Bank Fraud ConspiracyRead the Press Release
Earlier today, in federal court in Central Islip, John B. Mensch, the former owner and operator of East End Bus Lines, Inc. and its affiliated entities (East End), pleaded guilty in connection with a nearly year-long bank fraud conspiracy. The proceeding was held before United States District Judge Nusrat J. Choudhury. When sentenced, Mensch faces up to five years’ imprisonment as well as financial penalties, including restitution to two victim banks of approximately $9.6 million.
Breon Peace, United States Attorney for the Eastern District of New York, James E. Dennehy, Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Patrick J. Freaney, Special Agent in Charge, U.S. Secret Service, New York Office, announced the guilty plea.
“Rather than take lawful steps to wind down his failing businesses, John Mensch resorted to criminality, operating a scheme to defraud two banks into advancing him millions of dollars that neither Mensch nor his company ever had, or had any realistic expectation of obtaining,” stated United States Attorney Peace. “Mensch’s fraud resulted in the banks unwittingly subsidizing several months of his financial mismanagement. This Office will continue to aggressively investigate and prosecute criminals like Mensch who, through fraud and deception, seek to use financial institutions as a personal piggy bank.”
“This lengthy investigation brings down a ringleader who willfully swindled banking partners through the extensive use of fraudulent checks – siphoning millions of dollars in ill-gotten gains to his own coffers,” stated Secret Service Special Agent in Charge Freaney. “"I want to commend the many investigators who saw this comprehensive case to a successful conclusion. From the Secret Service Long Island Resident Office to the Federal Bureau of Investigation, and our prosecutorial partners at the Eastern District of New York, the law enforcement community in New York remains steadfast in its commitment to hold these types of insidious criminals accountable.”
FBI Assistant Director in Charge Dennehy stated, "Desperate to restore his failing business, John Mensch, the owner of East End Lines, defrauded two banks of more than $9 million through an elaborate check-bouncing scheme. He exploited company privileges to immediately access fraudulent funds while his business was running on empty. The FBI will continue to investigate individuals who deceptively cash in on financial assistance programs."
As set forth in the information and statements made during the plea proceeding, Mensch was the owner and operator of East End, a transportation company that provided busing services for students on Long Island and elsewhere. Between 2017 and September 2018, East End maintained numerous accounts—and was granted expedited check-clearing privileges—at banks located in Suffolk County and Orange County, New York. Those privileges meant that when East End deposited a check, the company would have near-immediate access to the deposited funds, even before the check cleared. Mensch and other East End executives abused those privileges by engaging in an elaborate “check-kiting” scheme—that is, passing fraudulent checks between East End’s various accounts to keep East End operational despite being effectively insolvent.
Specifically, Mensch and other East End executives drew checks on East End’s bank accounts at Financial Institution #1, despite those accounts having insufficient funds to cover the checks. Those bad checks were deposited into East End’s bank accounts at Financial Institution #2, which, unaware that the checks would eventually bounce, allowed East End immediate access to the funds. East End withdrew those funds to meet various financial obligations and then, before the checks bounced, conducted the same process in the reverse, drawing bad checks on its Financial Institution #2 accounts and depositing them into its Financial Institution #1 accounts to create the false impression that funds were available to cover the earlier checks. This reciprocal process continued, with the banks advancing East End non-existent funds for several months until the scheme was detected in September 2018. By that time, East End had obtained millions of dollars from Financial Institution #1 and Financial Institution #2, all of which it had spent while continuing to operate at a deficit.
In July 2022, Mr. Peace was selected as the Chairperson of the White Collar Fraud subcommittee for the Attorney General’s Advisory Committee (AGAC). As the leader of the subcommittee, Mr. Peace plays a key role in making recommendations to the AGAC to facilitate the prevention, investigation and prosecution of various financially motivated, non-violent crimes including frauds directed at financial institutions, such as those Mensch committed.
The government’s case is being handled by the Criminal Section of the Office’s Long Island Division. Assistant United States Attorneys Anthony Bagnuola and Adam R. Toporovsky are in charge of the prosecution.
The Defendant:
JOHN B. MENSCH
Age: 54
Quogue, New YorkE.D.N.Y. Docket No. 24-CR-334 (NJC)
Campaign Treasurer for Candidate for Brooklyn Borough President Charged with Scheme to Defraud New York City's Campaign Finance BoardRead the Press Release
Earlier today, in federal court in Brooklyn, Erlene King was charged with wire fraud in connection with her attempt to steal funds from New York City’s Campaign Finance Board (CFB).
Breon Peace, United States Attorney for the Eastern District of New York and James E. Dennehy, Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI) announced the charge.
Mr. Peace expressed his appreciation to the New York City CFB for its cooperation and assistance during the investigation.
CFB Overview
The CFB oversees and administers a publicly funded campaign finance system in connection with municipal elections in New York City. This includes a “matching funds program” that provides eligible candidates with public funds based on the number and amount of certain donor contributions. According to the CFB, the program “empowers New Yorkers in every neighborhood to make their voices heard in city elections” and “by encouraging candidates to raise small-dollar contributions from average New Yorkers, the program increases engagement between voters and those who seek to represent them.”
Candidates running for the Office of the Brooklyn Borough President in the 2021 election cycle were eligible to participate in the CFB’s matching funds program if they met certain criteria. Among other things, to be eligible to receive public funds, candidates were required to meet a two-part fundraising threshold. Specifically, a candidate had to collect a minimum number of donations and raise a minimum amount of money from New York City residents before the CFB paid any matching funds.
For candidates who ran for the Office of the Brooklyn Borough President during the 2021 election cycle, candidates received up to $8 in matching funds for each $1 of eligible contributions, up to $175 per contributor. In other words, if a candidate received an eligible contribution of $175, a candidate for the Office of the Brooklyn Borough President could collect up to $1,400 in matching funds. In total, the matching funds program provided up to $1,457,777 in public matching funds to a candidate for the Office of the Brooklyn Borough President. Because campaigns for Brooklyn Borough President during the 2021 election cycle needed to raise at least $50,000 in eligible contributions to receive any matching funds, any candidate who was eligible to receive matching funds necessarily received at least $400,000 in matching funds from the CFB.
The Scheme
As alleged in court documents, King served as the campaign treasurer for a candidate who ran in a primary for the Office of the Brooklyn Borough President during the 2021 election cycle (Candidate #1). King obtained fraudulent donations for the purpose of inducing the CFB to provide matching funds to the campaign. A number of those contributions, which were obtained at King’s direction, were fraudulent nominee contributions made in the names of individuals who either did not personally fund the contributions or were later reimbursed for their contributions (i.e., straw donors). For example, King used CashApp to send money to intermediaries and instructed them to distribute the money to fund contributions from straw donors to Candidate #1. Other fraudulent contributions were made in the names of individuals whose identities were stolen and who had not personally contributed to Candidate #1. The CFB ultimately determined that the campaign submitted fictitious records and did not pay any public matching funds to the campaign.
The charges in the information are merely allegations, and the defendant is presumed innocent unless and until proven guilty. If convicted, the defendant faces up to 20 years in prison.
The government’s case is being handled by the Office’s Public Integrity Section. Assistant United States Attorneys Philip Pilmar and Eric Silverberg are in charge of the prosecution.
The Defendant:
ERLENE KING
Age: 71
Brooklyn, NYE.D.N.Y. Docket No. 24-CR-374 (CBA)
MS-13 Gang Associate Sentenced to 50 Years in Prison for the Murders of Four Young Men in a Central Islip ParkRead the Press Release
Earlier today, at the federal courthouse in Central Islip, Leniz Escobar, also known as “Diablita,” an associate of the Leeward Locos Salvatruchas (Leeward) and Brentwood Locos Salvatruchas (Brentwood) cliques of La Mara Salvatrucha, also known as the MS-13, a violent transnational criminal organization, was sentenced by United States Second Circuit Judge Joseph F. Bianco, sitting by designation, to 600 months’ imprisonment. On April 8, 2022, Escobar was convicted after a four-week trial of racketeering, including predicate acts of murder, conspiracy to murder rival gang members, and obstruction of justice, and murder in aid-of racketeering. Those charges stemmed from her participation in the April 11, 2017 murders of Justin Llivicura, Michael Lopez, Jorge Tigre and Jefferson Villalobos, who were hacked to death with machetes and other sharp objects after Escobar lured them to a local Central Islip park.
Breon Peace, United States Attorney for the Eastern District of New York, James E. Dennehy, Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Robert E. Waring, Acting Commissioner, Suffolk County Police Department (SCPD), announced the sentence.
“The defendant demonstrated her allegiance to the MS-13 gang by luring four young men to their slaughter,” stated United States Attorney Peace. “Today’s significant sentence reflects not only the seriousness of her conduct but also the consequences of her actions including the terror and suffering experienced by the victims, and the life-altering grief that their families continue to suffer. It is my hope that the justice meted out today will provide some comfort to those who lost loved ones to this senseless gang violence.”
“In April 2017, Leniz Escobar ensnared four young men in a lethal ambush where fellow MS-13 associates ruthlessly murdered them due to assumed allegiance with a rival gang. Her subsequent bragging of her inhumane trap to ranked members exemplifies Escobar's perverted prioritization of gang status over human life. May today's sentencing provide some justice to the victims' families, and serve as a promise that the FBI will continue to eradicate the MS-13 presence terrorizing our communities,” stated FBI Assistant Director in Charge Dennehy.
"The senseless and brutal murder of four young people by members of the transnational gang MS-13, terrorized the Central Islip community and sent shockwaves across the nation," Suffolk County Police Acting Commissioner Robert Waring said. "Leniz Escobar played a significant role in leading four victims to their deaths and will pay the necessary price for her part. We hope that today's sentencing brings some measure of closure to the families who have suffered unimaginable grief. We will continue to pursue those who threaten the safety and well-being of members of our community with relentless determination."
The evidence at trial proved that on the evening of April 11, 2017, Escobar and a co-conspirator, Keyli Gomez, lured five young men, including the four murder victims, to a park in Central Islip where they were attacked by members of the MS-13, including Josue Portillo, Freiry Martinez, Alexis Hernandez, Edwin Rodriguez, Sergio Segovia-Pineda, Omar Antonio Villalta, Henry Salmeron, Anderson Sanchez and others. The MS-13 members believed the victims to be members of a rival gang; at least two of the victims had offended the MS-13 by posting photos on social media in which they wore certain items and flashed hand signs that signified membership in the MS-13 gang. Escobar and Gomez showed the gang-related photos to members of the MS-13, who confirmed the young men did not belong to MS-13, and it was decided that the victims would be killed. Gomez testified at the trial that she and Escobar drove with the victims to the park, led them to a predetermined wooded area and sent the MS-13 members text-messages notifying them of their arrival. The MS-13 members and associates proceeded to the designated location and encircled the victims under the cover of darkness. One of the intended victims immediately fled and was able to escape. Llivicura, Lopez, Tigre and Villalobos were surrounded by MS-13 members, who attacked them with machetes, knives, an axe, and wooden clubs. After the attack, the MS-13 members dragged the victims’ bodies to a more secluded spot in the woods, piled them up, and then fled. The victims’ bodies were discovered the following evening.
In the days following the murders, Escobar bragged to other MS-13 members about her role in the killings and, in recorded calls with her boyfriend, who was a high-ranking member of the Brentwood clique, discussed the attack in detail. Using barely coded language, and referring to the victims who were killed, she said, “four individuals took the train and who knows when they’ll be back, got me?” Escobar then shared how that plan went awry when one person escaped, adding “But one of them, one of them managed to still be here on the map” and “he knows stuff about me.” In a separate call, Escobar told her boyfriend that she was “happy for this to happen.” Of the four victims, she said they were “never coming back . . . somewhere else . . . seeing the light . . . no more . . . out of here . . . not on the map.”
Additionally, Escobar destroyed evidence of her involvement in the murders by disposing of a sweatshirt stained with the blood of a victim, tossing her cellular phone from a moving vehicle when she was being followed by the police and falsely telling detectives that she and Gomez were victims of a random robbery in the park on the night of the murders.
More than a dozen MS-13 members and associates have been charged in connection with the April 11, 2017 murders, including the individuals listed above. Of these defendants, Escobar is the fifth person to be sentenced. Josue Portillo was sentenced to 55 years’ incarceration, Freiry Martinez was sentenced to 50 years’ incarceration, Anderson Sanchez was sentenced to 32 years’ incarceration, Alexis Hernandez was sentenced to 29 years’ incarceration, and the remaining defendants are pending sentence.
Today’s sentencing is the latest in a series of federal prosecutions by the United States Attorney’s Office for the Eastern District of New York targeting members of the MS-13. The MS-13’s leadership traditionally has been based in El Salvador, Honduras, Guatemala and Mexico, but the organization also has thousands of members and an increasing number of leaders in the United States. With numerous branches, or “cliques,” the MS-13 is the most violent criminal organization on Long Island. Since 2003, hundreds of MS-13 members, including dozens of clique leaders, have been convicted on federal felony charges in the Eastern District of New York. A majority of those MS-13 members have been convicted on federal racketeering charges for participating in murders, attempted murders and assaults. Since 2010, this Office has obtained indictments charging MS-13 members with carrying out more than 70 murders in the Eastern District of New York, resulting in the convictions of dozens of MS-13 leaders and members in connection with those murders. These prosecutions are the product of investigations led by the FBI’s Long Island Gang Task Force, which is comprised of agents and officers of the FBI, SCPD, Nassau County Police Department, Nassau County Sheriff’s Department, Suffolk County Probation Office, Suffolk County Sheriff’s Office, the New York State Police, the Hempstead Police Department, the Rockville Centre Police Department and the New York State Department of Corrections and Community Supervision.
The government’s case is being handled by the Criminal Section of the Office’s Long Island Division. Assistant United States Attorneys Paul G. Scotti, Justina L. Geraci and Megan E. Farrell are in charge of the prosecution, with the assistance of Automated Litigation Support Specialist Michael Compitello.
The Defendant:
LENIZ ESCOBAR
Age: 24
Islip Terrace, New YorkE.D.N.Y. Docket No. 21-CR-101 (JFB)
Four Employees of Juvenile Detention Center Plead Guilty to Taking BribesRead the Press Release
Earlier today, in federal court in Brooklyn, Da’Vante Bolton, an employee of the New York City Administration for Children’s Services (ACS), pleaded guilty to accepting bribes, admitting that he smuggled contraband into a juvenile detention facility in exchange for illegal payments. On September 3, 2024, September 10, 2024 and September 26, 2024, ACS employees Octavia Napier, Christopher Craig and Nigel King pleaded guilty, respectively, to Travel Act bribery charges in connection with the same conduct. Today’s proceeding was held before United States District Judge Orelia E. Merchant. All four defendants were Youth Development Specialists at the Crossroads Juvenile Center in Brownsville, Brooklyn (Crossroads). When sentenced, Bolton faces a maximum sentence of 10 years’ imprisonment, and Napier, Craig and King each face a maximum sentence of five years’ imprisonment.
Breon Peace, United States Attorney for the Eastern District of New York, Jocelyn E. Strauber, Commissioner, New York City Department of Investigation (DOI) and James E. Dennehy, Assistant Director in Charge, New York Field Office (FBI) announced the charges.
“These defendants prioritized their own financial interests above the safety and security of residents and co-workers at the Crossroads Juvenile Center, giving dangerous contraband to juveniles in their care in exchange for bribes,” stated United States Attorney Peace. “This Office and our law enforcement partners will not stop rooting out and prosecuting corruption in our City’s jails and juvenile detention facilities.”
DOI Commissioner Jocelyn E. Strauber said, “These four City Youth Development Specialists were responsible for the safety and well-being of juveniles at the Crossroads Center in Brooklyn. They failed the juveniles in their care, and the City, when they took bribes to smuggle dangerous items into Crossroads, including razor blades, prescription pills, and alcohol. I thank the FBI and the U.S. Attorney’s Office for the Eastern District of New York for their partnership in the investigation that led to guilty pleas of these four defendants.”
Approximately 120 residents, ranging in age from 14 to 20, are detained at Crossroads. Residents at Crossroads are prohibited from possessing any contraband, including narcotics, cellular telephones, cigarettes, weapons and alcohol, among other prohibited items. ACS employees at Crossroads are trained to confiscate any contraband they find and must notify a supervisor if any contraband is discovered. Although staff members are supposed to undergo a security screening whenever they enter the facility, a significant amount of contraband has recently been recovered from Crossroads residents. Between approximately March 2022 and May 2024, at least 75 cell phones and more than 340 scalpels or blades were recovered from the facility, as well as narcotics and tobacco.
The defendants are or were Youth Development Specialists at Crossroads, who were responsible for supervising residents. Their responsibilities are similar to those of a correction officer at a jail facility, except, among other differences, Youth Development Specialists are restricted in the type of force they may use and are not permitted to carry pepper spray or restraints.
Da’Vante Bolton has been employed by ACS since March 2020. Bolton accepted more than $20,000 in bribes from Crossroads residents or their associates and, in exchange, smuggled in razor blades and marijuana.
Christopher Craig has been employed by ACS since August 2018. Craig received more than $5,000 in bribes to smuggle in contraband, including marijuana and tobacco.
Nigel King was employed by ACS from October 2021 to August 2024. King accepted more than $6,000 in bribes for smuggling in marijuana, prescription pills and alcohol.
Octavia Napier was employed by ACS from June 2022 to May 2023. Napier received more than $2,000 in bribes to both smuggle in contraband and allow a Crossroads resident to use Napier’s Cash App account to run the resident’s contraband distribution business from within Crossroads.
A fifth defendant, Roger Francis, is currently awaiting trial on the same charges.
The government’s case is being handled by the Office’s Public Integrity Section. Assistant United States Attorneys Philip Pilmar and Andrew D. Grubin and Special Assistant United States Attorney Cassie Perez of the Bronx District Attorney’s Office are in charge of the prosecution, with assistance from Legal Assistant Thomas Englert.
Defendants Who Have Pled Guilty:
DA’VANTE BOLTON
Age: 31
Queens, NYE.D.N.Y. Docket No. 24-CR-383 (OEM)
CHRISTOPHER CRAIG
Age: 37
Brooklyn, NYE.D.N.Y. Docket No. 24-CR-345 (OEM)
NIGEL KING
Age: 45
Queens, NYE.D.N.Y. Docket No. 24-CR-368 (RPK)
OCTAVIA NAPIER
Age: 26
Brooklyn, NYE.D.N.Y. Docket No. 24-CR-328 (FB)
Defendant Awaiting Trial:
ROGER FRANCIS
Age: 58
Brooklyn, NYE.D.N.Y. Docket No. 24-CR-342 (NCM)
MDC Correctional Officer Charged with Federal Civil Rights ViolationRead the Press Release
Earlier today, a complaint was unsealed in Brooklyn federal court charging Leon Wilson, a correctional officer at the Metropolitan Detention Center (MDC-Brooklyn), with willfully depriving an individual of his constitutional rights while acting under color of law. Last fall, Wilson, while on duty and driving a Bureau of Prisons (BOP)-issued minivan, allegedly chased a civilian vehicle from the MDC-Brooklyn staff parking lot and through a large section of Brooklyn before firing three gunshots towards the car, at least one of which struck one of its occupants. Wilson was taken into federal custody yesterday and is scheduled to be arraigned this afternoon before United States Magistrate Judge Marcia M. Henry.
Breon Peace, United States Attorney for the Eastern District of New York, Ryan T. Geach, Special Agent in Charge, Department of Justice, Office of the Inspector General, Northeast Region (DOJ-OIG) and James E. Dennehy, Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the charges.
“Correctional officers are sworn to uphold the law but, as alleged, this defendant violated his oath and position by starting a dangerous car chase through the streets of Brooklyn ending with him shooting wildly at the passengers in the other car without justification, and wounding one,” stated United States Attorney Peace. “My Office is committed to protecting the civil rights of everyone in this district and will hold accountable those who violate them.”
Mr. Peace expressed his appreciation to the New York City Police Department (NYPD) and the United States Department of Justice Civil Rights Division for their work in this case.
“Today’s complaint alleges that Wilson recklessly pursued another vehicle through the streets of Brooklyn and fired a weapon three times, harming a passenger and endangering countless New Yorkers. His alleged conduct was dangerous, illegal, and antithetical to the behavior we expect from an officer of the law,” said Ryan T. Geach, Special Agent in Charge, Department of Justice Office of the Inspector General, Northeast Region.
“Leon Wilson, a correctional officer, allegedly failed to report an unlawful on-duty shooting to the Bureau of Prisons following an unauthorized high-speed vehicle pursuit from the Metropolitan Detention Center. The defendant’s alleged actions exceeded the boundaries of his authority and recklessly endangered countless civilians. The FBI is committed to pursuing those who willingly disregard public safety and violate policies designed to protect constitutional rights,” stated FBI Assistant Director in Charge Dennehy.
As alleged in court documents, Wilson was on duty at MDC-Brooklyn on September 4, 2023 when he chased a BMW out of the facility’s staff parking lot and off MDC-Brooklyn property. Wilson had no authority to pursue the BMW past MDC-Brooklyn’s property line, but he did so anyway, ultimately chasing the BMW to the edge of the Brooklyn Bridge, approximately five miles from the facility. During the chase, Wilson exceeded the speed limit, passed other vehicles, and ran red lights. Approximately two minutes after the chase began—and nearly a mile from MDC-Brooklyn—Wilson fired three shots at the BMW, one of which penetrated the rear of the vehicle and struck a passenger in the back seat. Wilson continued to chase the BMW for several minutes after firing his weapon. He never reported the on-duty shooting to the NYPD, MDC-Brooklyn, or BOP personnel.
The charges in the complaint are merely allegations, and the defendant is presumed innocent unless and until proven guilty. If convicted, Wilson faces up to ten years in prison.
The government’s case is being handled by the Office’s Civil Rights and Public Integrity Sections. Assistant United States Attorneys Erin Reid and Eric Silverberg are in charge of the prosecution, with assistance from Eastern District of New York Special Agent Anthony Cunder and Paralegal Specialist Nadya Osman.
The Defendant:
LEON WILSON
Age: 49
Bronx, New YorkE.D.N.Y. Docket No. 24-MJ-553 (SJB)
Federal Charges Announced Against Inmates for Violent Crimes Committed in the Metropolitan Detention Center in BrooklynRead the Press Release
Today in Brooklyn, the United States Attorney’s Office for the Eastern District of New York announced charges in five cases addressing violence at New York City’s federal pretrial detention facility, the Metropolitan Detention Center (MDC-Brooklyn), located in Sunset Park, Brooklyn. These include charges against inmates for the murder of Uriel Whyte on June 7, 2024, the murder of Edwin Cordero on July 17, 2024, an attempted murder on April 27, 2024 and two violent assaults on August 24 and 27, 2024. The defendants, all of whom were previously ordered detained at MDC-Brooklyn on other charges, will be arraigned in the coming days.
Breon Peace, United States Attorney for the Eastern District of New York, Lisa O. Monaco, United States Deputy Attorney General and James E. Dennehy, Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the charges.
“Violence will not be tolerated in our federal jails.” stated United States Attorney Peace. “As alleged, in June and July of this year, two men detained at MDC-Brooklyn—Uriel Whyte and Edwin Cordero—were murdered by fellow inmates using makeshift weapons. Others at MDC-Brooklyn have been viciously assaulted by inmates, as alleged in the three other cases announced today. As the only federal pretrial facility in New York City, MDC-Brooklyn houses pretrial inmates accused of some of the most serious crimes in our region. No matter the reason for their detention, my Office will work tirelessly to vindicate the rights of victims who suffer violence within MDC-Brooklyn and prosecute to the fullest extent of the law those who choose to commit such heinous acts. Let these charges serve as a warning to those who would engage in criminal conduct behind bars, and anyone else who facilitates those crimes: your conduct will be exposed, and you will be held accountable.”
Mr. Peace thanked the United States Attorney’s Office for the Southern District of New York, the United States Attorney’s Office for the Eastern District of Pennsylvania and the U.S. Bureau of Prisons for their assistance with the investigations.
“Today’s charges demonstrate the Justice Department’s commitment to rooting out violence and criminal behavior at federal detention facilities—a critical component of our work to improve conditions across the Federal Bureau of Prisons,” stated Deputy Attorney General Monaco. “Violence and contraband in our prisons are unacceptable, and the Department will hold accountable those who threaten the safety of anyone in our custody.”
“Several inmates of Brooklyn’s Metropolitan Detention Center allegedly orchestrated a series of distinct violent assaults, including the murders of fellow inmates, Uriel Whyte and Edwin Cordero. While this federal jail houses dangerous pretrial inmates, order and safety must remain paramount. Awaiting potential criminal charges is not a warranted justification to subject a detained individual to unnecessary attacks. May today’s indictments reflect the FBI’s determination to apprehend violent criminals, regardless of where the incidents may occur,” stated FBI Assistant Director in Charge Dennehy.
United States v. Andrew Simpson and Devone Thomas, 24-CR-360 (EK)
The defendants Andrew Simpson and Devone Thomas, who were previously detained at MDC-Brooklyn on racketeering and robbery charges, respectively, have been indicted by a grand jury for their roles in the June 7, 2024 murder of inmate Uriel Whyte.
On the morning of June 7, 2024, following a verbal dispute between Simpson and Whyte, cellmates Simpson and Thomas armed themselves with makeshift weapons and proceeded to engage in a series of two-on-one attacks against Whyte. The escalating violent attacks, which took place over a span of approximately 15 minutes, were committed against Whyte inside Simpson and Thomas’s shared cell, which served to hide their conduct from guards and surveillance cameras. The attacks culminated with Whyte suffering a severe stab wound to his neck, which severed his carotid artery. While Whyte was able to exit the cell and seek medical aid, he succumbed to his wounds shortly thereafter despite the efforts of onsite medical personnel and responding paramedics.
Simpson and Thomas are charged with murder in a federal detention facility, assault in a federal detention facility, obstruction of justice and possession of contraband in prison for their roles in fatally stabbing Whyte at MDC-Brooklyn.
If convicted, Simpson and Thomas face mandatory sentences of life in prison.
The government’s case against Simpson and Thomas is being handled by the Office’s Organized Crime and Gangs and General Crimes Sections. Assistant United States Attorneys Michael Maffei, Sophia Suarez and Elizabeth D’Antonio are in charge of the prosecution.
United States v. Jamaul Aziz, James Bazemore and Alberto Santiago, 24-CR-380 (NCM)
The defendants Jamaul Aziz, also known as “bugz,” James Bazemore, also known as “TJ” and “RS,” and Alberto Santiago, also known as “Kom” and “dotcom,” have been indicted by a grand jury for their roles in the July 17, 2024 murder of Edwin Cordero, a fellow inmate at MDC-Brooklyn. Aziz and Santiago were both previously detained at MDC-Brooklyn for various serious gun and drug-trafficking crimes; Bazemore was detained for racketeering conspiracy, murder in-aid-of racketeering, use of a firearm resulting in death and being a felon in possession of a firearm. All three have admitted their guilt or been found guilty in their underlying cases.
In the afternoon of July 17, 2024—following an earlier altercation between Cordero and Santiago—Santiago, Aziz and Bazemore met with each other intermittently over approximately half an hour. Cordero then reengaged with Santiago—both of them armed with makeshift weapons—when shortly after Aziz and Bazemore, also armed, joined in. Aziz, Bazemore and Santiago cornered Cordero while swinging and stabbing at him. After Cordero was able to escape, Bazemore continued to attack him, which allowed Santiago to approach Cordero from behind and stab him in the center of his chest, perforating various parts of his heart. Cordero then staggered forward, and Bazemore stabbed him in the back. Aziz and Bazemore next cornered the victim again next to a table and repeatedly stabbed, struck and kicked him, including after he fell to the ground and tried to shield himself with the table. Staff members quickly responded to the commotion and delivered emergency medical care but were unable to save the victim.
The indictment charges Aziz, Bazemore and Santiago with premeditated murder within a federal detention facility, conspiracy to commit murder within a federal detention facility, assault resulting in serious bodily injury within a federal detention facility and possession of one or more objects designed to be used as weapons within a prison.
If convicted, the defendants face mandatory sentences of life in prison.
The government’s case against Aziz, Bazemore and Santiago is being handled by the Office’s Organized Crime and Gangs and General Crimes Sections. Assistant United States Attorneys Irisa Chen and Elizabeth D’Antonio are in charge of the prosecution.
United States v. Luis Rivas, 24-CR-390 (OEM)
The defendant Luis Rivas has been indicted by a grand jury with attempted murder in a federal detention facility, assault in a federal detention facility and possession of contraband in prison, for his role in the April 27, 2024 assault of another inmate at MDC-Brooklyn. At the time of the attack, Rivas was detained at MDC-Brooklyn after being convicted of racketeering and assault in-aid-of-racketeering charges related to his membership in the gang La Mara Salvatrucha (MS-13). On the morning of April 27, 2024, Rivas and two other MS-13 members brutally attacked another inmate in their housing unit. Prior to the attack, the victim was sitting peacefully, relaxing with his feet up. Rivas then approached the victim, took a makeshift weapon from his waistband, and stabbed the victim with it. Two other MS-13 members then came to Rivas’ aid and assisted him in punching and stabbing the victim repeatedly. After the assault, the victim was taken to MDC- Brooklyn’s medical unit and then to a hospital to treat the approximately 44 stab wounds to his back, chest, abdomen, right arm and legs.
If convicted, Rivas faces up to 45 years in prison.
The government’s case against Rivas is being handled by the Office’s General Crimes Section. Assistant United States Attorney Sean M. Sherman is in charge of the prosecution.
United States v. Bruce Silva and Hassan Elliott, 24-MJ-556 (MMH)
The defendants Bruce Silva and Hassan Elliott have been charged by complaint with assault in a federal detention facility for their roles in the August 27, 2024 assault of another inmate at MDC-Brooklyn. At the time of the attack, Silva was detained at MDC-Brooklyn in connection with pending charges including racketeering conspiracy, narcotics conspiracy, firearms charges, attempted murder and assault in-aid-of racketeering in connection with his participation in multiple shootings in the Bronx, and other crimes related to his membership in “Dub City,” a street gang based in the Bronx. Elliott was detained at MDC-Brooklyn at the time of the attack in connection with 29 pending charges related to his membership in “1700 Scattergood,” a violent drug trafficking organization operating in Northeast Philadelphia, including the murder in-aid-of racketeering of a Philadelphia police sergeant (who was seeking to execute search and arrest warrants for Elliott at the time of his murder), racketeering conspiracy, three other murders in-aid-of racketeering, multiple charges related to multiple other shootings and related firearms and narcotics offenses.
On the morning of August 27, 2024, Silva and Elliott tried to attack another inmate in their housing unit. They took makeshift weapons from their waistbands and tried to stab and slash their intended victim. When a fourth inmate interceded, Silva stabbed the fourth inmate in the spine with a makeshift icepick, leaving the icepick protruding from the inmate’s back. Silva and Elliott then continued to try to attack both the stabbing victim and their original intended victim. After the assault, the stabbing victim was taken to MDC-Brooklyn’s medical unit and then to a hospital to remove the weapon from his spine and treat him.
If convicted, Silva and Elliott each face up to 10 years in prison.
The government’s case against Silva and Elliott is being handled by the Office’s General Crimes Section. Assistant United States Attorney Amanda Shami is in charge of the prosecution.
United States v. Leury Mojica, 24-MJ-559 (MMH)
Defendant Leury Mojica was charged by complaint with assaulting a federal officer. As alleged in the complaint, on August 24, 2024, Mojica punched a corrections officer in the face after the victim offered Mojica breakfast. Mojica was originally detained at MDC-Brooklyn in connection with a Hobbs Act robbery charge, and also previously participated in a violent stabbing of another inmate, which conduct was taken into account in his May 2024 sentencing in the Southern District of New York.
If convicted, Mojica faces up to 20 years in prison.
The government’s case against Mojica is being handled by the Office’s General Crimes Section. Assistant United States Attorney David Berman is in charge of the prosecution.
The charges in all of the indictments and complaints are allegations, and the defendants are presumed innocent unless and until proven guilty.
The Defendants:
ANDREW SIMPSON
Age: 26
Brooklyn, New YorkDEVONE THOMAS
Age: 24
Queens, New YorkE.D.N.Y. Docket No. 24-CR-360 (EK)
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JAMAUL AZIZ
Age: 44
New York, New YorkJAMES BAZEMORE
Age: 42
Bronx, New YorkALBERTO SANTIAGO
Age: 28
Queens, New YorkE.D.N.Y. Docket No. 24-CR-380 (NCM)
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LUIS RIVAS
Age: 29
Jamaica, New YorkE.D.N.Y. Docket No. 24-CR-390 (OEM)
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BRUCE SILVA
Age: 28
Bronx, New YorkHASSAN ELLIOTT
Age: 26
Philadelphia, PennsylvaniaE.D.N.Y. Docket No. 24-MJ-556 (MMH)
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LEURY MOJICA
Age: 21
Bronx, New York
E.D.N.Y. Docket No. 24-MJ-559 (MMH)Federal Charges Announced Against Inmates for Violent Crimes Committed in Metropolitan Detention Center in BrooklynRead the Press Release
The Justice Department today announced charges in five cases addressing violence at New York City’s federal pretrial detention facility, the Metropolitan Detention Center, (MDC), located in Sunset Park, Brooklyn. These include charges against inmates for the murder of Uriel Whyte on June 7, the murder of Edwin Cordero on July 17, an attempted murder on April 27, and two violent assaults on Aug. 24 and 27. The defendants, all of whom were previously ordered detained at the MDC on other charges, will be arraigned in the coming days.
“Today’s charges demonstrate the Justice Department’s commitment to rooting out violence and criminal behavior at federal detention facilities — a critical component of our work to improve conditions across the Federal Bureau of Prisons,” said Deputy Attorney General Lisa Monaco. “Violence and contraband in our prisons are unacceptable, and the Department will hold accountable those who threaten the safety of anyone in our custody.”
“Violence will not be tolerated in our federal jails,” said U.S. Attorney Breon Peace for the Eastern District of New York. “As alleged, in June and July of this year, two men detained at the MDC — Uriel Whyte and Edwin Cordero — were murdered by fellow inmates using makeshift weapons. Others at the MDC have been viciously assaulted by inmates, as alleged in the three other cases announced today. As the only federal jail in New York City, the MDC houses pretrial inmates accused of some of the most serious crimes in our region. No matter the reason for their detention, my office will work tirelessly to vindicate the rights of victims who suffer violence within the MDC and prosecute all those who choose to commit such heinous acts to the full extent of the law. Let these charges serve as a warning to those who would continue their criminal conduct behind bars, and anyone else who facilitates those crimes: your conduct will be exposed, and you will be held accountable.”
“Several inmates of Brooklyn’s Metropolitan Detention Center allegedly orchestrated a series of distinct violent assaults, including the murders of fellow inmates, Uriel Whyte and Edwin Cordero,” said Assistant Director in Charge James E. Dennehy of the FBI New York Field Office. “While this federal jail houses dangerous pretrial inmates, order and safety must remain paramount. Awaiting potential criminal charges is not a warranted justification to subject a detained individual to unnecessary attacks. May today’s indictments reflect the FBI’s determination to apprehend violent criminals, regardless of where the incidents may occur.”
The U.S. Attorney’s Office for the Southern District of New York and the Federal Bureau of Prisons provided assistance in the investigations.
United States v. Simpson and Thomas, 24-CR-360
Andrew Simpson and Devone Thomas, who were previously detained at the MDC on racketeering and robbery charges, respectively, were indicted by a grand jury for their roles in the June 7, murder of inmate Uriel Whyte.
On the morning of June 7, following a verbal dispute between Simpson and Whyte, cellmates Simpson and Thomas armed themselves with makeshift weapons and proceeded to engage in a series of two-on-one attacks against Whyte. The escalating violent attacks, which took place over a span of approximately 15 minutes, were committed against Whyte inside Simpson and Thomas’ shared cell, which served to hide their conduct from guards and surveillance cameras. The attacks culminated with Whyte suffering a severe stab wound to his neck, which severed his carotid artery. While Whyte was able to exit the cell and seek medical aid, he succumbed to his wounds shortly thereafter despite the efforts of onsite medical personnel and responding paramedics.
Simpson and Thomas are charged with murder in a federal detention facility, assault in a federal detention facility, obstruction of justice, and possession of contraband in prison for their roles in fatally stabbing Whyte at the MDC.
Assistant U.S. Attorneys Michael Maffei, Sophia Suarez, and Elizabeth D’Antonio for the Eastern District of New York are prosecuting the case.
United States v. Aziz, Bazemore and Santiago, 24-CR-380
On Sept. 24, a grand jury in the Eastern District of New York returned an indictment charging Jamaul Aziz, also known as bugz; James Bazemore, also known as TJ and RS; and Alberto Santiago, also known as Kom and dotcom, with four crimes related to their roles in the July 17 murder of Edwin Cordero, a fellow inmate at the MDC. Aziz and Santiago were both previously detained in the MDC for various serious gun and drug-trafficking crimes; Bazemore was detained for racketeering conspiracy, murder in-aid-of racketeering, use of a firearm resulting in death, and being a felon in possession of a firearm. All three have admitted their guilt in their underlying cases.
In the afternoon of July 17 — following an earlier altercation between the victim and Santiago — Santiago, Aziz, and Bazemore met with each other intermittently over approximately half an hour. Santiago then reengaged with the victim — both of them armed with makeshift weapons — when shortly after Aziz and Bazemore, also armed, joined in. Aziz, Bazemore, and Santiago cornered the victim while swinging and stabbing at him. After the victim was able to escape, Bazemore continued to attack the victim, which allowed Santiago to approach the victim from behind and stab the victim in the center of his chest, perforating various parts of his heart. The victim then staggered forward, and Bazemore grabbed the victim and stabbed him in the back. Aziz and Bazemore next cornered the victim again next to a table and repeatedly stabbed, struck, and kicked the victim, including after he fell to the ground and tried to shield himself with the table. Staff members quickly responded to the commotion and delivered emergency medical care but were unable to save the victim.
Aziz, Bazemore, and Santiago are charged with premeditated murder within a federal detention facility, conspiracy to commit murder within a federal detention facility, assault resulting in serious bodily injury within a federal detention facility, and possession of one or more objects designed to be used as weapons within a prison.
Assistant U.S. Attorneys Irisa Chen and Elizabeth D’Antonio for the Eastern District of New York are prosecuting the case.
United States v. Luis Rivas, 24-CR-390
A grand jury indicted Luis Rivas today on attempted murder in a federal detention facility, assault in a federal detention facility, and possession of contraband in prison for his role in the April 27, assault of another inmate at the MDC. At the time of the attack, Rivas was detained at the MDC after being convicted of racketeering and assault in-aid-of-racketeering charges related to his membership in the gang La Mara Salvatrucha (MS-13). On the morning of April 27, Rivas and two other MS-13 members brutally attacked another inmate in their housing unit. Prior to the attack, the victim was sitting peacefully, relaxing with his feet up. Rivas then approached the victim, took a makeshift weapon from his waistband, and stabbed the victim with it. Two other MS-13 members then came to Rivas’ aid and assisted him in punching and stabbing the victim repeatedly. After the assault, the victim was taken to MDC’s medical unit and then to a hospital to treat the approximately 44 stab wounds to his back, chest, abdomen, right arm and legs.
Assistant U.S. Attorney Sean M. Sherman for the Eastern District of New York is prosecuting the case.
United States v. Bruce Silva and Hassan Elliott, 24-MJ-556
Bruce Silva and Hassan Elliott were charged by complaint with assault in a federal detention facility for their role in the Aug. 27, assault of another inmate at the MDC. At the time of the attack, Silva was detained at the MDC in connection with pending charges in the Southern District of New York, including racketeering conspiracy, narcotics conspiracy, firearms charges, attempted murder and assault in-aid-of racketeering in connection with his participation in multiple shootings in the Bronx, and other crimes related to his membership in “Dub City,” a street gang based in the Bronx, New York. Elliott was detained at the MDC at the time of the attack in connection with 29 pending charges in the Eastern District of Pennsylvania, including the murder in-aid-of racketeering of a Philadelphia Police Sergeant (who was seeking to execute search and arrest warrants for Elliott at the time of his murder), racketeering conspiracy, three other murders in-aid-of racketeering, multiple charges related to multiple other shootings, and related firearms and narcotics offenses related to his membership in “1700 Scattergood,” a violent drug trafficking organization operating in Northeast Philadelphia.
On the morning of Aug. 27, Silva and Elliott tried to attack another inmate in their housing unit. They took makeshift weapons from their waistbands and tried to stab and slash their intended victim. When a fourth inmate interceded, Silva stabbed the fourth inmate in the spine with a makeshift icepick, leaving the icepick protruding from the inmate’s back. Silva and Elliott then continued to try to attack both the stabbing victim and their original intended victim. After the assault, the stabbing victim was taken to the MDC’s medical unit and then to a hospital to remove the weapon from his spine and treat him.
Assistant U.S. Attorney Amanda Shami for the Eastern District of New York is prosecuting the case.
United States v. Leury Mojica, 24-MJ-559
Leury Mojica was charged by complaint with assaulting a federal officer. As alleged in the complaint, on Aug. 24, Mojica punched a corrections officer in the face after the victim offered Mojica breakfast. Mojica was originally detained at the MDC in connection with a Hobbs Act robbery charge, and also previously participated in a violent stabbing of another inmate, which conduct was taken into account in his May sentencing in the Southern District of New York.
Assistant U.S. Attorney David Berman for the Eastern District of New York is prosecuting the case.
An indictment or criminal complaint is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Brooklyn-Based Home Health Care Agencies Settle Fraud Claims for $9.75 Million and Agree to Pay $7.5 Million in Wages and Benefits to Underpaid AidesRead the Press Release
Breon Peace, United States Attorney for the Eastern District of New York, and Letitia James, New York State Attorney General, announced settlement agreements with Brooklyn-based licensed home care service agencies (LHCSAs) Edison Home Health Care of New York LLC (Edison) and Preferred Home Health Care of New York LLC (Preferred) today. The settlement agreements address allegations that Edison and Preferred, which were related companies, violated the federal False Claims Act and New York State’s False Claims Act in claiming that they paid their home care aides the minimum wages required under New York State law. The agencies received payments from Medicaid, which is funded in part by the federal government, and much of that money was meant to pay the wages and benefits of their aides.
Today’s settlement with Edison and Preferred follows similar settlements with the LHCSAs All American Homecare Agency, Crown of Life Care NY LLC, and White Glove Community Care, Inc.
“Home health aides work long hours at difficult, often thankless tasks to ensure that the vulnerable individuals who they provide services to are properly cared for,” stated United States Attorney Peace. “These aides deserve the hard-earned benefits guaranteed them under the law and my Office will ensure that they are accurately compensated.”
Mr. Peace thanked the Medicaid Fraud Control Unit of the Office of the New York State Attorney General for its partnership in the government’s investigation and resolution of this important case.
“Home health aides provide crucial care to our most vulnerable neighbors and loved ones, and they deserve to be paid for their hard work,” said Attorney General James. “Edison and Preferred cheated employees out of years of pay and cheated New York taxpayers by defrauding Medicaid for their own benefit. This is a tremendous victory for our ongoing efforts to protect hardworking New Yorkers’ rightfully earned wages. My office will do everything in our power to ensure that companies cannot steal wages and take advantage of the system. Thank you to U.S. Attorney Breon Peace for his continued partnership in rooting out Medicaid fraud.”
The New York Wage Parity Act sets minimum wage and benefits requirements for LHCSAs that employ home care aides who render services to Medicaid recipients in New York City and in Nassau, Suffolk, and Westchester counties. Under the Wage Parity law, aides are to be paid a minimum amount in total compensation; only then will the LHCSAs receive Medicaid reimbursement for home care services. The required compensation comes in the form of a base wage and a supplemental benefit. The base wage must be paid in cash. The benefit portion can include the value of vacation, holiday, and sick pay, among other things. It can also include health insurance, pension plans, or educational assistance. Today, the minimum amount of total compensation for an aide in New York City is $19.09 per hour; for Nassau, Suffolk, and Westchester counties, the minimum is $18.22 per hour.
Home health aides perform all aspects of personal care for sick or homebound patients and frequently work long shifts lasting up to 24 hours. The tasks performed in caring for patients are demanding and can consist of assisting or lifting patients out of bed and bathing, dressing, grooming, preparing meals for and, in some instances, feeding them. Patients may suffer from physical or mental disorders that can make the work of the aides physically and emotionally taxing. In fact, it was in recognition of the difficulty of this work that New York passed the Wage Parity Act.
The Settlement
This Office, in coordination with the New York State Attorney General’s Office’s Medicaid Fraud Control Unit, commenced an investigation after whistleblowers alleged that certain LHCSAs had knowingly defrauded the federal government and New York State by underpaying home health aides in violation of the Wage Parity Act. The government’s investigation determined that Edison and Preferred certified their compliance with the law and sought and received reimbursement from Medicaid, even though the government determined that their payments to their aides fell short of the requisite compensation.
Under the terms of the agreements with the United States and New York State, Edison and Preferred have agreed to pay $3.9 million to the United States and $5.85 million to New York State for conduct that took place from 2012 to 2022.
In addition to the payments to resolve the government’s fraud claims, Edison and Preferred are required to pay $7.5 million to current and former aides who were and are entitled to compensation under the Wage Parity Act. Moreover, Edison and Preferred have admitted to conduct that led the government to determine that they fell short of Wage Parity Act requirements.
The case is being handled by Assistant U.S. Attorney Michael Blume of the Office’s Civil Division.
Smithtown Man Pleads Guilty to $1 Million Covid-19 FraudRead the Press Release
Earlier today, at the federal courthouse in Central Islip, Carmine G. Agnello pleaded guilty to wire fraud in connection with his receipt of approximately $1.1 million in small business loans under the United States Small Business Administration’s Economic Injury Disaster Loan Program (EIDLP). Today’s proceeding was held before United States District Judge Nusrat J. Choudhury. When sentenced, Agnello faces up to 30 years in prison, as well as restitution totaling more than $940,000 and a fine of up to $2.2 million.
Breon Peace, United States Attorney for the Eastern District of New York, and Daniel Brubaker, Inspector in Charge, United States Postal Inspection Service, New York Division (USPIS), announced the guilty plea.
“The defendant shamefully used the public health and economic crisis of the COVID-19 pandemic as an opportunity to line his pockets with stolen funds,” stated United States Attorney Peace. “The reality is, those who engaged in blatant theft of taxpayer dollars intended to assist legitimate businesses and their employees during the COVID-19 pandemic should know that despite the passage of time, there is no free pass for their crimes and they will be vigorously prosecuted by the Office.”
“Agnello allegedly used over $1 Million in COVID relief funds for his own financial gain. Government money that was intended to assist struggling businesses during the COVID-19 pandemic. Postal Inspectors will relentlessly pursue any individuals who scheme to defraud the government and steal taxpayer funds. We, along with our law enforcements partners, will not end this pursuit of justice until those who take advantage of the U.S. Mail to commit fraud are held fully accountable. Today’s guilty plea is proof of that fact. I would like to thank our partners in Homeland Security Investigations and the United States Attorney's Office, Eastern District of New York, for their work on this investigation,” stated USPIS Inspector in Charge Brubaker.
Congress created the EIDLP as part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act. Enacted on March 29, 2020, the CARES Act provided emergency financial assistance in connection with economic effects of the COVID-19 pandemic. One source of relief provided by the CARES Act was the EIDLP, which provided low-interest financing to small businesses, renters and homeowners in regions affected by declared disasters.
As set forth in court filings, between April 2020 and November 2021, amid the COVID-19 pandemic, Agnello fraudulently applied for, and received, at least three EIDLP loans totaling approximately $1.1 million that he submitted on behalf of Crown Auto Parts & Recycling, LLC (Crown), a Jamaica, Queens-based business that he operated. As part of the scheme, Agnello submitted documentation to the Small Business Administration and financial institution responsible for disbursing the funds, that falsely claimed he had no criminal record when, in reality, he had a 2018 misdemeanor conviction. Agnello also submitted false information about the number of employees that worked for Crown and the intended use of the loan proceeds. Instead of using the funds for disaster relief, Agnello diverted them for his personal use, including by investing approximately $420,000 in a cryptocurrency business.
The government’s case is being handled by the Criminal Section of the Office’s Long Island Division. Assistant United States Attorney Bradley T. King is in charge of the prosecution.
The Defendant:
CARMINE G. AGNELLO
Age: 38
Smithtown, New YorkE.D.N.Y. Docket No. 24-CR-366 (NJC)
U.S. Attorney's Office to Work with Local Partners to Reduce Domestic ViolenceRead the Press Release
Attorney General Merrick B. Garland has approved an initial set of 78 communities across 47 states, territories, and the District of Columbia for designation under Section 1103 of the Violence Against Women Act Reauthorization Act of 2022.
The Justice Department – through its United States Attorney’s Offices (USAOs) and Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Field Divisions – will partner with each designated jurisdiction to develop a plan to reduce intimate partner gun violence and to prioritize prosecutions of domestic violence offenders prohibited under 18 U.S. Code Section 922(g) from owning firearms. In the Eastern District of New York, the borough of Brooklyn has been designated as one of the jurisdictions.
“My Office will continue to use every tool and resource available to address domestic violence in our communities and hold violent actors accountable,” stated United States Attorney for the Eastern District of New York Breon Peace. “Strong community partnerships are key to our ability to meaningfully engage in this endeavor, and we thank all of our partners for their untiring efforts.”
“ATF is committed to our continued partnerships in aggressively pursuing prohibited possession of firearms due to domestic violence convictions and certain protective orders. Community safety is our top priority and combatting prohibited firearms possession by domestic abusers is another way we prevent violent gun crime within our communities,” stated ATF New York Special Agent in Charge Bryan Miller.
Communities have been designated in close coordination with community stakeholders. They include rural areas, suburban areas, urban areas, and Tribal communities. The Justice Department used data to identify communities that could benefit from increased focus on intimate partner violence resources and where the local jurisdiction is committed to partnering with the Department to increase the use of federal tools to prosecute offenders under 18 U.S.C. 922(g). The designation represents the partnership and coordination between the Department and the local jurisdiction to ensure federal resources are being leveraged effectively to address intimate partner gun violence.
In the EDNY, this initiative will not only support the Office’s close work with its federal and state law enforcement partners, especially ATF, the Federal Bureau of Investigation and the New York City Police Department, but it will also bolster its partnerships with local nonprofit organizations, such as The Salvation Army and Restore NYC, as well as the New York State Office of Victim Services and the Mayor’s Office to End Domestic & Gender-Based Violence, which operates the New York City Family Justice Centers, to provide needed support to victims of domestic violence.
The Justice Department anticipates additional jurisdictions to be designated as USAOs continue coordination with their local stakeholders. All USAOs, with or without specific community designations under Section 1103, will continue to combat intimate partner gun violence and prioritize prosecutions of domestic violence offenders as part of their Project Safe Neighborhoods strategy and in support of the Department’s Comprehensive Strategy for Reducing Violent Crime.
Bronx Man Sentenced to 151 Months’ Imprisonment for Distributing Child PornographyRead the Press Release
Earlier today, at the federal courthouse in Central Islip, Christian Brazoban, also known as “Bison,” was sentenced by United States District Judge Joan M. Azrack to 151 months in prison for distributing child pornography to three minor victims. Brazoban pleaded guilty to the charge in January 2024.
Breon Peace, United States Attorney for the Eastern District of New York, William S. Walker, Special Agent-in-Charge, U.S. Department of Homeland Security, Homeland Security Investigations, New York (HSI), and Patrick J. Ryder, Commissioner, Nassau County Police Department (NCPD), announced the sentence.
“Today’s sentence brings justice to a minor victim whom the defendant terrorized with a barrage of sickening images of child pornography and death threats,” stated United States Attorney Peace. “The defendant’s actions with respect to this victim, and others with whom he also communicated, illustrate the menace of sexual predators preying on children on the Internet. I urge parents and caregivers to talk to their children about the dangers of communicating online with strangers and anyone who may exploit them.”
“Christian Brazoban’s depraved crimes are among every parent’s worst nightmare. This case highlights HSI's commitment to protect the most vulnerable members of our community, especially against a perpetrator like Brazoban who not only exploited young children, but threatened their lives through his sextortion scheme,” stated HSI New York Special Agent in Charge Walker. “HSI New York stands united with our law enforcement partners in our mission to protect the public wherever and whenever possible.”
“Thanks to the hard work of detectives from the NCPD Special Victim’s Unit, in cooperation with HSI and all our federal partners, a dangerous threat to the children of Nassau County has been caught and brought to justice,” stated NCPD Commissioner Ryder. “We are dedicated to keeping the internet safe from disturbed individuals like the defendant who prey on the vulnerable and we hope this case serves as a warning to those that target children that we will never lower our resolve. You will be found and punished.”
As set forth in court filings, between approximately March 2021 and March 2023, Minor Victim 1, a minor who resided in Nassau County, engaged in online communications, including video chats, with Brazoban. On March 3, 2023, after Minor Victim 1 rebuked Brazoban for expressing sexual interest in a friend of Minor Victim 1’s who was in the seventh grade, Brazoban sent online messages to Minor Victim 1 and Minor Victims 2 and 3 (a relative and a friend of Minor Victim 1), which contained numerous images of child pornography. When Minor Victim 1 told Brazoban to stop, he sent her additional online messages threatening to kill her and her family. For example, Brazoban wrote: “lil girl shot dead on Long Island”; “I’m thinkin I tie you and just beat you to death with a mallet.”
On March 15, 2023, HSI agents and NCPD officers executed a search warrant at Brazoban’s residence in the Bronx and recovered a cellphone containing images of child pornography and threats that he had sent to Minor Victim 1. The search also revealed that the defendant had distributed child pornography to two other minor victims.
The government’s case is being handled by the Criminal Section of the Office’s Long Island Division. Assistant United States Attorney Bradley T. King is in charge of the prosecution.
The Defendant:
CHRISTIAN BRAZOBAN (also known as “Bison”)
Age: 26
Bronx, New YorkE.D.N.Y. Docket No. 23-CR-138 (JMA)
Leader of Gorilla Stone Mafia Gang Convicted of Two Murders on Staten Island and Drug DistributionRead the Press Release
Today, a federal jury in Brooklyn returned a guilty verdict against John Pena, leader of the Gorilla Stone Mafia (GSM), a subgroup of the Untouchable Gorilla Stone Nation (UGSN), which is a faction of the nationwide Bloods street gang. The jury convicted Pena, also known as “Tragedy,” “Don Tragg,” “Last Don” and “Money Baggz,” on all six counts of a second superseding indictment charging him with racketeering; murder in-aid-of racketeering; causing death through use of a firearm; unlawful possession, brandishing and discharge of a firearm; being a felon in possession of ammunition; and conspiring to distribute and possess with intent to distribute marijuana and crack cocaine. Pena was convicted of murdering Mark Bajandas on March 10, 2021, and Francisco Gonzalez on June 22, 2021, on behalf of GSM. The verdict followed a seven-day trial before United States District Judge Ann M. Donnelly. When sentenced, Pena faces a mandatory sentence of life in prison.
Breon Peace, United States Attorney for the Eastern District of New York, James E. Dennehy, Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Thomas G. Donlon, Interim Commissioner, New York City Police Department (NYPD), announced the verdict.
As the evidence proved, Pena was consumed by seeking revenge against rivals and maintaining his leadership position in the Gorilla Stone Mafia gang by any means necessary,” stated United States Attorney Peace. “Killing a man as he slept in bed and shooting another man with a dozen bullets are shocking examples of Pena’s ruthlessness. Today’s verdict ensures he will spend the rest of his life in prison for his direct role in the extreme violence and drug trafficking wreaked on a Staten Island community.”
Mr. Peace thanked the U.S. Marshals Service for their assistance.
“Today’s guilty verdict is a direct result of the focused and collaborative efforts of dedicated investigators from the NYPD, FBI, and the office of the U.S. Attorney for the Eastern District of New York,” stated Interim NYPD Commissioner Donlon. “Gang activity, especially the carrying and indiscriminate shooting of illegal guns on our streets, instills fear in the daily lives of New Yorkers. It is crucial that we and our law enforcement partners continue to target and dismantle these criminal groups, and work toward preventing the violence that is so often associated with their activities.”
As proven at trial, Pena committed the crimes of conviction in connection with his leadership of GSM, which operated out of the Stapleton Houses, a public housing development on Staten Island. Members of GSM use intimidation, threats of violence and acts of violence to preserve and protect GSM’s power, territory and criminal activities. They also use drug trafficking as a means of obtaining money.
In the early morning hours of March 10, 2021, Pena fired multiple gunshots from close range at Mark Bajandas, also known as “Drama,” a former GSM associate and perceived rival, killing him. Bajandas, a former GSM member who had defected to the rival Bugatti set of USGN, suffered at least 12 gunshot wounds. The murder occurred after Pena and Bajandas had attended a memorial earlier in the evening to commemorate the death of Avanti Brock, a former GSM member who was murdered allegedly by Bugatti approximately one year earlier.
On June 22, 2021, Pena murdered Francisco Gonzalez, a former GSM member, by shooting him three times in the head while Gonzalez was asleep in bed next to Pena’s ex-girlfriend.
Law enforcement recovered writings from Pena’s jail cell at the Metropolitan Detention Center that included statements in which he took responsibility for the murders of Bajandas and Gonzalez, such as: “Kuz I Turn all my opps into ghost / Francisco I mix them N / Mark / A … shhh / Gotta chill … they don’t Know / Lately how I feel / Like the reaper / If I spot em I’m snatching his soul.” Pena also wrote about killing Gonzalez, including: “left his brains on them sheets man what was he thinkin’?,” referring to the fact that he had shot Gonzalez in the head while Gonzalez was asleep in bed.
Witness testimony and evidence obtained from cell phones proved that GSM members enriched themselves by selling controlled substances in and around the Stapleton Houses and also in Vermont, and that Pena was involved in the sale and distribution of marijuana, crack cocaine and heroin.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. As part of the program, U.S. Attorney’s Offices work in partnership with federal, state, local and tribal law enforcement and their local communities to develop effective, locally based strategies to reduce violent crime.
The government’s case is being handled by the Office’s Organized Crime and Gangs Section. Assistant United States Attorneys Dana Rehnquist, Andrew Roddin and Elias Laris are in charge of the prosecution, with the assistance of Paralegal Specialist Elizabeth Reed and Assistant United States Attorney Matthew Galeotti.
The Defendant:
JOHN PENA (also known as “Tragedy,” “Don Tragg,” “Last Don” and Money Baggz”)
Age: 32
Staten Island, New YorkE.D.N.Y. Docket No.: 21-CR-176 (S-2) (AMD)
Two Individuals Plead Guilty to Distributing Heroin and Fentanyl that Caused the Death of a Transgender ActivistRead the Press Release
Earlier today, in federal court in Brooklyn, Michael Kuilan pled guilty before United States District Judge Brian M. Cogan to a charge that he distributed and possessed with intent to distribute heroin and fentanyl. The plea arises out of Kuilan’s distribution of narcotics that led to the death of Cecilia Gentili. Kuilan also pled guilty to a charge of being a felon in possession of a firearm. On July 30, 2024, Kuilan’s co-defendant, Antonio Venti, pled guilty before Judge Cogan to the same drug offense. Kuilan and Venti were indicted together in March 2024.
Breon Peace, United States Attorney for the Eastern District of New York, Frank A. Tarentino, III, Special Agent in Charge, Drug Enforcement Administration (DEA) and Thomas G. Donlon, Interim Commissioner, New York City Police Department (NYPD), announced the plea.
“The perpetrators of the tragic poisoning of Cecilia Gentili, a prominent leader of the New York transgender community, have now both admitted their guilt in selling the lethal drugs that have caused this heartbreaking death,” stated United States Attorney Peace. “These drugs, heroin and fentanyl, have caused so much pain throughout our community. I hope this case will bring a sense of closure to Gentili’s family and serve as a warning that this Office will be relentless in holding fentanyl dealers accountable.”
“While these guilty pleas can't undo the tragic loss of transgender rights activist Cecelia Gentili, it sends a message that we will do everything we can to make sure those responsible for drug related deaths face the consequences for their actions, and the families of those who lost their lives receive justice. The men and women of DEA New York Division, along with our law enforcement partners, will continue to target those responsible for poisoning our communities” stated DEA New York Division Special Agent in Charge Frank Tarentino.
“The resolution of this case should serve as a warning to those who seek to profit from the distribution of fentanyl-laced drugs in our communities,” stated Interim NYPD Commissioner Donlon. “Dedicated investigators from all levels of government are working together every day to identify, investigate, and prosecute individuals involved in these heinous crimes. I commend the collaborative efforts of the NYPD, DEA, and the office of the U.S. Attorney for the Eastern District of New York for their ongoing commitment to ensuring the safety, security, and well-being of all New Yorkers.”
According to court documents and facts presented at the guilty plea proceeding, on February 6, 2024, Gentili was found dead in her bedroom in Brooklyn. Gentili died due to the combined effect of controlled substances, including fentanyl, xylazine, cocaine, and heroin. Text messages, cell site data, and other evidence revealed that Venti sold the fentanyl and heroin mixture to Gentili on February 5, 2024, and that Kuilan supplied Venti with those lethal narcotics. As part of their plea agreements, Kuilan and Venti agreed that they caused Gentili’s death. In addition, law enforcement searched an apartment in Williamsburg, Brooklyn belonging to Kuilan and found hundreds of baggies of fentanyl, as well as a handgun and ammunition.
The government’s case is being handled by the Office’s International Narcotics and Money Laundering Section. Assistant U.S. Attorney Adam Amir is in charge of the prosecution, with the assistance of Paralegal Specialist Samuel Ronchetti.
The Defendants:
MICHAEL KUILAN
Age: 44
Brooklyn, New YorkANTONIO VENTI
Age: 52
West Babylon, New YorkE.D.N.Y. Docket No. 24-CR-130 (BMC)
Long Island Drug Dealer Sentenced to 17 Years in Prison for Distributing Fentanyl that Caused the Death of a Suffolk County ManRead the Press Release
Earlier today, in federal court in Central Islip, Tyheim Smith was sentenced by United States District Judge Gary R. Brown to 17 years in prison for distribution of fentanyl. As part of his guilty plea, Smith admitted his fentanyl caused the death of a 25-year-old Suffolk County man (the “Victim”), and that he used firearms in furtherance of his drug trafficking activity.
Breon Peace, United States Attorney for the Eastern District of New York, announced the sentence.
“This prosecution demonstrates my Office’s commitment to confronting the deadly fentanyl epidemic in this district,” stated United States Attorney Peace. “Today, the defendant, a drug dealer who carried out his illicit business using illegal guns, was held accountable for distributing fentanyl that caused the tragic poisoning death of a young man on Long Island. The large quantities of fentanyl the defendant distributed all over Suffolk County had a devastating impact on the community, including by taking this young man away from his family. We will continue to work tirelessly to investigate and prosecute those who contribute to this epidemic.”
Mr. Peace thanked the U.S. Department of Homeland Security, Homeland Security Investigations, New York, and the Suffolk County Police Department, for their work on the case.
In July 2021, Smith sold the Victim “blues,” pills that the Victim believed were oxycodone, when in fact, the defendant knew the pills were fentanyl. The Victim’s family found him dead in their Bay Shore residence after the Victim ingested the pills. Shortly after the Victim’s death, over the course of one month, Smith sold fentanyl pills to undercover officers on five separate occasions. In October 2021, the Suffolk County Police Department executed a search of Smith’s home and recovered 72 fentanyl pills marked as oxycodone and two loaded firearms, high-capacity magazines and ammunition. After being charged by the Suffolk County District Attorney’s Office, Smith continued to sell fentanyl while out on bail, until his federal arrest and remand in April 2022.
According to the Centers for Disease Control and Prevention (CDC) and the Department of Justice, in 2023, nearly 108,000 people died from drug overdoses, making it a leading cause of injury-related death in the United States. The increase in overdose deaths has been driven in large part by fentanyl, a drug that has been described as 50 to 100 times more potent than morphine. In 2023, over 74,000 people died from a drug overdose involving synthetic opioids such as fentanyl, a figure that was around 2,000 less than the more than 76,000 synthetic opioid overdose deaths that occurred in 2022. Between 2022 and 2023, overall drug overdose deaths declined approximately 3% from around nearly 111,000 such deaths in 2022.
The government’s case is being handled by the Criminal Section of the Office’s Long Island Division. Assistant United States Attorney Samantha Alessi is in charge of the prosecution.
The Defendant:
TYHEIM SMITH
Age: 23
Central Islip, New YorkE.D.N.Y. Docket No. 22-CR-183 (GRB)
Specially Designated Global Terrorist Mohammad Bazzi Pleads Guilty to Sanctions EvasionRead the Press Release
Lebanese national Mohammad Ibrahim Bazzi, 60, pleaded guilty today to conspiracy to conduct and to cause U.S. persons to conduct unlawful transactions with a Specially Designated Global Terrorist.
In May 2018, the Department of the Treasury, Office of Foreign Assets Control (OFAC) designated Bazzi as a Specially Designated Global Terrorist for assisting in, sponsoring and providing financial, material and technological support and financial services to Hizballah. Hizballah is a foreign terrorist organization that, since the 1980s, engaged in numerous terrorist activities, including attacks against American military members, government employees and civilians abroad.
According to the OFAC designation, Bazzi is a key Hizballah financier who has provided millions of dollars to Hizballah over the years, generated from his business activities in Belgium, Lebanon, Iraq and throughout West Africa. As a result of the designation, Bazzi’s interest in any property in the United States were blocked, and all U.S. persons were generally prohibited from transacting business with, or for the benefit of, Bazzi.
Following Bazzi’s designation and according to the court documents, Bazzi and his co-defendant, Talal Chanine, who remains at large in Lebanon, conspired to force or induce an individual located in the United States (U.S. Person) to liquidate their interests in certain real estate assets located in Michigan and covertly transfer hundreds of thousands of dollars in proceeds of the liquidation out of the United States to Bazzi and Chahine in Lebanon without the required OFAC licenses, in violation of the International Emergency Economic Powers Act (IEEPA).
During recorded communications, Bazzi and Chahine proposed numerous methods to conceal from OFAC and law enforcement officials that Bazzi was both the source and destination of the proceeds of the sale and to create the false appearance that the U.S. Person was conducting legitimate arms-length transactions unrelated to Bazzi and Chahine. For example, Bazzi and Chahine proposed that the funds be transferred through:
- A third party in China as part of a fictitious purchase of restaurant equipment from a Chinese manufacturer;
- A third party in Lebanon as part of a fictitious real estate purchase;
- Chahine’s family members in Kuwait as part of fictitious intra-family loans; and
- As part of a fictitious franchising agreement as payment for the rights to operate a Lebanese-based restaurant chain throughout the United States.
Bazzi was arrested in February 2023 by Romanian law enforcement authorities and subsequently extradited to the Eastern District of New York. The Justice Department thanks the Romanian authorities for their assistance in this matter.
A sentencing hearing will be scheduled at a later date. Bazzi faces a maximum penalty of 20 years in prison. He has also agreed to forfeit the nearly $830,000 that was involved in the illegal transaction, and to be removed from the United States upon completion of his sentence. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Matthew G. Olsen of the National Security Division, U.S. Attorney Breon Peace for the Eastern District of New York and Executive Assistant Director Robert Wells of the FBI’s National Security Branch made the announcement.
Assistant U.S. Attorneys Francisco J. Navarro, Jonathan P. Lax, Nomi D. Berenson, Claire Kedeshian and Robert M. Pollack for the Eastern District of New York are prosecuting the case with assistance provided by Trial Attorney Charles Kovats of the National Security Division’s Counterterrorism Section and Scott Claffee of the National Security Division’s Counterintelligence and Export Section. The Justice Department’s Office of International Affairs assisted with the extradition in this case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF.
Specially Designated Global Terrorist Mohammad Bazzi Pleads Guilty to Sanctions EvasionRead the Press Release
Earlier today, in federal court in Brooklyn, Mohammad Ibrahim Bazzi pleaded guilty to conspiracy to conduct and to cause United States persons to conduct unlawful transactions with a Specially Designated Global Terrorist. The proceeding was held before United States District Judge Dora L. Irizarry. Bazzi also agreed to forfeit the nearly $830,000 that was involved in the illegal transaction, and to be removed from the United States upon completion of his sentence. When sentenced, Bazzi faces a maximum sentence of 20 years’ imprisonment.
Breon Peace, United States Attorney for the Eastern District of New York and Cheryl Ortiz, Special Agent in Charge, Drug Enforcement Administration (DEA), New Jersey Field Division announced the charges.
“Today, Specially Designated Global Terrorist Mohammad Bazzi accepted responsibility for his role in conspiring to secretly move hundreds of thousands of dollars from the United States to Lebanon in violation of sanctions placed on him for assisting the terrorist group Hizballah,” stated United States Attorney Peace. “This outcome demonstrates our commitment to enforcing sanctions imposed to starve terrorism financiers of funds, and the stark consequences that will be enforced when they are ignored.”
Mr. Peace expressed his appreciation to the Federal Bureau of Investigation and Romanian authorities for its assistance on the case.
“The guilty plea from Mohammed Bazzi is a result of the collaborative effort DEA New Jersey has with our law enforcement partners, and foreign counterparts, in effectively targeting those individuals and organizations that violate sanctions by providing financial assistance to terrorist organizations, like Hizballah.” stated DEA New Jersey Field Division Special Agent in Charge Cheryl Ortiz. “The DEA remains committed to disrupting and dismantling these organizations and those who choose to support them financially.”
In May 2018, the United States Department of the Treasury, Office of Foreign Assets Control (OFAC) designated Bazzi as a Specially Designated Global Terrorist for assisting in, sponsoring, and providing financial, material, and technological support and financial services to Hizballah, a foreign terrorist organization that, since the 1980s, has engaged in numerous terrorist activities, including attacks against American military members, government employees, and civilians abroad. According to the OFAC designation, Bazzi is a key Hizballah financier who has provided millions of dollars to Hizballah over the years, generated from his business activities in Belgium, Lebanon, Iraq, and throughout West Africa. As a result of the designation, Bazzi’s interest in any property in the United States were blocked, and all U.S. persons were generally prohibited from transacting business with, or for the benefit of, Bazzi.
Following Bazzi’s designation, Bazzi and his co-defendant Talal Chahine, who remains at large in Lebanon, conspired to force or induce an individual located in the United States (U.S. Person) to liquidate their interests in certain real estate assets located in Michigan and covertly transfer hundreds of thousands of dollars in proceeds of the liquidation out of the United States to Bazzi and Chahine in Lebanon without the requisite OFAC licenses, in violation of the International Emergency Economic Powers Act (IEEPA).
During recorded communications, Bazzi and Chahine proposed numerous methods to conceal from OFAC and law enforcement officials that Bazzi was both the source and destination of the proceeds of the sale and to create the false appearance that the U.S. Person was conducting legitimate arms-length transactions unrelated to Bazzi and Chahine. For example, Bazzi and Chahine proposed that the funds be transferred through:
- a third party in China as part of a fictitious purchase of restaurant equipment from a Chinese manufacturer;
- a third party in Lebanon as part of a fictitious real estate purchase;
- Chahine’s family members in Kuwait as part of fictitious intra-family loans; and
- as part of a fictitious franchising agreement as payment for the rights to operate a Lebanese-based restaurant chain throughout the United States.
Bazzi was arrested in February 2023 by Romanian law enforcement authorities and subsequently extradited to the Eastern District of New York.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF
The government’s case is being handled by the Office’s International Narcotics and Money Laundering Section. Assistant United States Attorneys Francisco J. Navarro, Jonathan P. Lax, Nomi D. Berenson, and Robert M. Pollack are in charge of the prosecution, with assistance provided by Trial Attorney Charles Kovats of the National Security Division’s Counterterrorism Section and Trial Attorney Scott A. Claffee of the National Security Division’s Counterintelligence and Export Control Section. Assistant United States Attorney Claire Kedeshian and Senior Law Clerk Alfred Pelargu of the Office’s Asset Recovery Section are handling forfeiture matters. The Justice Department’s Office of International Affairs assisted with the extradition in this case.
The Defendant:
MOHAMMAD BAZZI
Age: 60
Lebanon, Belgium, and United KingdomE.D.N.Y. Docket No. 23-CR-041 (DLI)
Felon Sentenced to 10 Years in Prison for Possessing Ammunition He Used in Shooting a Man in Brooklyn in 2021Read the Press Release
Earlier today in federal court in Brooklyn, Leo Oliver, also known as “Gam,” was sentenced by United States District Judge Dora L. Irizarry to 10 years in prison for being a felon in possession of ammunition related to a shooting in 2021. Oliver pleaded guilty to the charge in December 2023. The Court also found that Oliver was responsible for a second shooting in a convenience store in Brooklyn in 2020. As part of the sentence, Oliver was ordered to pay restitution in the amount of $12,000 to the victims.
Breon Peace, United States Attorney for the Eastern District of New York, announced the sentence.
“Today, Oliver has been justly punished for the harm he inflicted upon two people in separate, callous shootings in Brooklyn,” stated United States Attorney Peace. “Fortunately, these victims survived. My Office will continue to work tirelessly with our federal and local law enforcement to reduce gun-related violence in our communities.”
Mr. Peace thanked the U.S. Department of Homeland Security, Homeland Security Investigations New York, and the New York City Police Department for their outstanding investigative work on the case.
According to court filings and facts presented in court, Oliver shot a victim (“Victim-1”) on September 25, 2021 following an argument with Victim-1 on the sidewalk on Van Siclen Avenue in East New York, Brooklyn. Oliver shot Victim-1 in his torso, before fleeing on foot. Victim-1 was hospitalized for gunshots to his torso, a lacerated spleen, and fractured ribs, but he survived. Two .380 shell casing were recovered at the scene.
Judge Irizarry also found today that Oliver committed a second shooting on July 8, 2020 inside a convenience store in East New York, Brooklyn. Victim-2 was working behind the counter when, after a dispute, Oliver pulled a black gun from his pocket and shot Victim-2 in the chest and hand before fleeing in an SUV. A .380 shell casing was recovered from the scene.
Victim-2 was hospitalized with gunshot wounds, fractured ribs, lung bruising, and a fractured hand from the shooting. Victim-2’s injuries left him unable to earn a living.
After the shootings, Oliver took steps to destroy evidence and conceal his crimes. Specifically, he deleted an image of two guns from his cell phone and threw the handgun used in the 2020 shooting into the East River.
The defendant has a criminal history of at least seven felony convictions.
Assistant United States Attorney Adam Amir is in charge of the prosecution.
The Defendant:
LEO OLIVER (also known as “Gam”)
Age: 44
Mechanicsburg, PennsylvaniaE.D.N.Y. Docket No. 23-CR-279 (DLI)
United States Attorney Breon Peace Announces Whistleblower Non-Prosecution Pilot ProgramRead the Press Release
United States Attorney Breon Peace today announced that the U.S. Attorney’s Office for the Eastern District of New York (the “Office”) has implemented a new Whistleblower Non-Prosecution Pilot Program (the “Whistleblower Pilot Program”). The Whistleblower Pilot Program, which is effective immediately, is designed to encourage individuals to disclose original and actionable information about previously unknown criminal conduct undertaken by or through public or private entities or organizations. It does so by providing transparency regarding the conditions under which an individual’s voluntary self-disclosure of criminal conduct to the Office, coupled with the agreement to fully cooperate in the investigation of others involved, may make the individual eligible for a non-prosecution agreement (“NPA”). The Whistleblower Pilot Program will enable the Office to investigate and hold wrongdoers accountable more quickly, particularly with respect to criminal conduct that might otherwise go undetected or be impossible to prove, and will, in turn, further encourage companies to create and enforce compliance programs that help prevent, detect, and remediate misconduct and to report misconduct when it occurs.
The program applies to circumstances where an individual voluntarily discloses to the Office information regarding criminal conduct undertaken by two or more individuals, or by or through public or private entities or organizations, including corporations, partnerships, non-profits, exchanges, money services businesses, banks, financial institutions, investment advisers, or investment funds, involving: (1) fraud or corporate control failures; (2) intellectual property theft and related violations; (3) market integrity; (4) state or local bribery or fraud relating to federal, state, or local funds; (5) obstruction of justice, perjury, or false statements; (6) healthcare fraud, including violations of the Anti-Kickback statute; and (7) money laundering related to any of the prior-listed crimes. Pursuant to the Whistleblower Pilot Program, the Office will enter into an NPA in exchange for the individual’s cooperation where the following conditions are met:
- The misconduct has not previously been made public and is not already known to the Department of Justice (“DOJ”);
- The individual discloses the criminal conduct voluntarily to EDNY and not in response to a government inquiry or obligation to report misconduct to EDNY or any other component of DOJ, and prior to imminent threat of disclosure or government investigation;
- The individual provides substantial assistance in the investigation and prosecution of one or more equally or more culpable persons, and is prepared to cooperate fully with this Office in its investigation and prosecution of the disclosed conduct, including testifying in any proceeding in the Eastern District of New York or elsewhere as requested by the Office;
- The individual provides complete, truthful, and accurate information, and discloses all criminal conduct in which the individual has participated and of which the individual is aware;
- The individual is not an elected, or appointed and confirmed, federal, state, local or foreign official; a federal law enforcement official; the highest-ranking person within the organization where the misconduct occurred (e.g., the Chief Executive Officer) or the person who, regardless of title, exercises primary control over the operations of such organization; or the head of a public agency or entity;
- The individual’s role in the alleged misconduct did not involve: leading or originating the illegal activity; violence or the threat of violence; any federal or state sex offense involving fraud, force, coercion, or a minor; or any federal or state offense involving terrorism; and
- The individual has not been previously convicted of any felony involving: violence or the threat of violence; any sex offense involving force, fraud, coercion, or a minor; terrorism; or fraud or dishonesty.
If an individual discloses information to the Office regarding the covered crimes but does not meet the requirements set forth above, the Office will nevertheless consider exercising discretion to extend a non-prosecution agreement, taking into account certain factors outlined in the Whistleblower Pilot Program, including, but not limited to, information provided by the individual about individuals or entities located outside the United States of America that could lead to the investigation and prosecution of such individuals or entities; whether the individual has information about criminal conduct by a federal elected or appointed and confirmed official, or by a senior officer and/or member of the board of directors of a publicly traded company; and the adequacy of non-criminal sanctions.
Finally, to receive a non-prosecution agreement under the Whistleblower Pilot Program, the reporting individual will be required to forfeit or disgorge any proceeds from the criminal wrongdoing and pay restitution to victims.
The specific terms of the Whistleblower Pilot Program, along with a form for voluntary self-disclosures and the email address to which such forms should be sent, is available on the Office’s website here.
Ismael "El Mayo" Zambada Garcia, Co-Founder of the Sinaloa Cartel, Arraigned in Brooklyn on International Drug Trafficking ChargesRead the Press Release
Ismael “El Mayo” Zambada Garcia, a citizen of Mexico, was arraigned this morning in federal court in Brooklyn on a fifth superseding indictment charging him with conspiring to manufacture and distribute fentanyl. The superseding indictment relates to Zambada Garcia’s decades-long leadership of the Sinaloa Cartel, one of the most violent and powerful drug trafficking organizations in the world. Zambada Garcia was previously charged with running a continuing criminal enterprise, as well as murder conspiracy, money laundering conspiracy, cocaine, heroin, methamphetamine, and fentanyl manufacture and distribution conspiracy, as well as other drug-related crimes. Today’s proceeding was held before United States Magistrate Judge James R. Cho. Zambada Garcia was ordered detained pending trial. If convicted of the continuing criminal enterprise count, Zambada Garcia faces a mandatory life sentence.
Zambada Garcia was transferred yesterday to the Eastern District of New York from the Western District of Texas, following his arrest in New Mexico on July 25, 2024.
Merrick B. Garland, United States Attorney General; Lisa O. Monaco, United States Deputy Attorney General; Breon Peace, United States Attorney for the Eastern District of New York; Markenzy Lapointe, United States Attorney for the Southern District of Florida; Nicole M. Argentieri, Principal Deputy Assistant Attorney General and head of the Criminal Division; David Sundberg, Assistant Director in Charge, Federal Bureau of Investigation, Washington Field Office (FBI); Anne Milgram, Administrator, Drug Enforcement Administration; Katrina W. Berger, Executive Associate Director, U.S. Department of Homeland Security, Homeland Security Investigations (HSI); and Steven G. James, Superintendent, New York State Police (NYSP), announced the arraignment.
“El Mayo, the co-founder and leader of the Sinaloa Cartel, has been charged with overseeing a multi-billion-dollar conspiracy to flood American communities with narcotics, including deadly fentanyl,” said Attorney General Merrick B. Garland. “We allege that El Mayo built, and for decades led, the Sinaloa Cartel’s network of manufacturers, assassins, traffickers, and money launderers responsible for kidnapping and murdering people in both the United States and Mexico, and importing lethal quantities of fentanyl, heroin, meth, and cocaine into the United States. Now, El Mayo joins the many other Sinaloa Cartel leaders who have faced charges in an American courtroom for the immeasurable harm they have inflicted on families and communities across our country.”
“For decades, the Sinaloa Cartel has profited from poisoning and killing Americans, and fueling violence on both sides of our southern border,” stated Deputy Attorney General Monaco. “Today’s arraignment of Zambada Garcia is the latest step in a whole-of-government effort to strike back against one of the world’s most dangerous criminal organizations and protect our communities from the fentanyl epidemic.”
“Zambada Garcia’s day of reckoning in a U.S. courtroom has arrived and justice will follow,” stated United States Attorney Peace. “If convicted, never again will he deliver fentanyl, cocaine, and other deadly drugs and associated violence into our country or make millions as hundreds of thousands of innocent lives are lost. It is my hope that the countless family members and friends of victims who succumbed to his cartel’s poisons, and the countless members of law enforcement who fearlessly risked their lives fighting this scourge, should take comfort in knowing that Zambada Garcia will be held accountable for his multitude of crimes.”
Mr. Peace also expressed his thanks to the U.S. Attorney’s Office for the Western District of Texas, and the United States Marshals Service for their assistance on the case.
“Zambada Garcia can no longer hide from the American justice system,” stated United States Attorney Lapointe. “His arrest means that he will now have to face charges for leading the Sinaloa Cartel’s multi-billion dollar criminal enterprise that funneled drugs onto our streets and violence and despair into our communities. But our work is not done. We will continue to go after the leaders of the Sinaloa Cartel and the drug trafficking organizations around the world.”
“Defeating the Sinaloa cartel is DEA’s top operational priority and today, with the capture and additional charges filed against Ismael Zambada Garcia we are that much closer. Better known as ‘El Mayo,’ Zambada Garcia is the co-founder and leader of the Sinaloa Cartel, one of the most ruthless and dangerous cartels in Mexico and responsible for the unprecedented drug crisis facing the United States,” stated DEA Administrator Milgram. “With Zambada Garcia no longer in power we have struck at the heart of the Sinaloa cartels’ operations. He may have eluded capture for three decades, but today he is seeing what it means to face justice in America. Let this be a reminder to his associates and others, American lives depend on DEA remaining laser focused on destroying the cartel, their networks, and their global supply chain and that is what we will continue to do.”
“Today’s arraignment sends a clear message to drug traffickers around the world — you will be brought to justice,” said Homeland Security Investigations Executive Associate Director Katrina W. Berger. “The men and women of HSI are active partners in investigating, intercepting and halting the flow of illegal drugs into the United States and keeping them off our streets.”
“The arraignment of this individual is a result of the relentless work of law enforcement partners at all levels to stem the tide of illegal drugs and drug related violence in our country,” stated NYSP Superintendent James. “Strong partnerships are key, and as a result, a dangerous international drug trafficking operation, and the organized crime perpetuated by it, has been shut down. The State Police will continue to tenaciously work in conjunction with our partners to seek out those who deliberately put others in danger.”
Zambada Garcia was first indicted in the Eastern District of New York in 2009 and most recently in the fifth superseding indictment in February 2024. As alleged, Zambada Garcia was a co-founder of the Sinaloa Cartel together with his co-defendant Joaquin Guzman Loera (El Chapo), and the two of them ran the Sinaloa Cartel together from Mexico until El Chapo’s arrest in 2016. Following a trial, El Chapo was convicted in the Eastern District of New York in 2019 and sentenced to life imprisonment plus 30 years. Zambada Garcia, however, continued his brutal reign until his arrest just weeks ago.
According to the superseding indictment, from 1989 to 2024, Zambada Garcia led a continuing criminal enterprise responsible for the importation and distribution of massive quantities of narcotics and which generated billions of dollars in profits. To ensure the success of the Sinaloa Cartel, Zambada Garcia employed thousands of people in South and Central America, throughout Mexico and in the United States. Through a complex, layered structure, Zambada Garcia was able to assure transportation routes for the narcotics he sold from source of supply to distribution on the streets of the United States; this included securing corrupt officers, transportation routes, and storage facilities to ensure that narcotics safely transited through various countries for ultimate distribution in the United States. Zambada Garcia also employed groups of “sicarios” or hit men, who at his orders carried out kidnappings and murders in Mexico and elsewhere—including murders in the United States—to eliminate anyone who threatened this valuable narcotics pipeline and to retaliate against rivals and those suspected of cooperating with the United States government. The billions of dollars generated from the drug sales were then transported and laundered back to Mexico.
As set forth in the superseding indictment and other court filings, the Sinaloa Cartel under Zambada Garcia’s leadership expanded its drug business into fentanyl manufacturing and distribution no later than 2012 and is responsible for the distribution of many thousands of kilograms of fentanyl into the United States. Zambada Garcia also expanded the power and influence of the Sinaloa Cartel by making millions of dollars each year in corruption payments and conducting regular campaigns of brutal violence, including retaliatory murders that were allegedly committed on his orders as recently as just weeks prior to his arrest.
The charges in the superseding indictment are allegations, and the defendant is presumed innocent unless and until proven guilty.
This superseding indictment is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
The government’s case is being handled by the Office’s International Narcotics and Money Laundering Section. Assistant United States Attorneys Francisco J. Navarro, Robert M. Pollack, Adam Amir, and Lauren A. Bowman are leading the prosecution for the Eastern District of New York with the assistance of Paralegal Specialist Melissa Bennett. Assistant United States Attorney Andrea Goldbarg of the Southern District of Florida and Trial Attorneys Melanie Alsworth and Kirk Handrich of the U.S. Department of Justice Criminal Division’s Narcotic and Dangerous Drug Section are leading the prosecution for their respective offices.
The case was investigated by the FBI, HSI and DEA. Substantial assistance was provided by the U.S. Attorneys’ Offices for the Northern District of Illinois, Central District of California, Southern District of California, and Western District of Texas.The Defendant:
Ismael Zambada Garcia (also known as “El Mayo”)
Age: 76
MexicoE.D.N.Y. Docket No. 9-CR-466 (BMC) (S-5)
Senior Fund Executives and Salespeople Charged in Connection with $60 Million Pre-IPO Fraud SchemeRead the Press Release
Earlier today, at the federal court in Brooklyn, a five-count indictment was unsealed charging John Cangialosi, Peter Girgis, Gene Sarabella, also known as “Jerry,” Enrico Carini, also known as “Ed,” and Caner Otar, also known as “John,” with conspiracy to commit securities fraud, conspiracy to commit wire fraud, securities fraud, investment adviser fraud, and money laundering conspiracy in connection with their scheme to defraud investors in Max Infinity Management LLC, Elder Fund Management LLC, and a related series of funds (collectively, “Max Infinity”). The defendants’ fraudulent misrepresentations about the operation of the funds, including excessive and undisclosed share price markups charged to investors, allowed them to raise more than approximately $60 million from investors and divert approximately $27 million for the benefit of the defendants and other Max Infinity salespeople.
Breon Peace, United States Attorney for the Eastern District of New York, and Christie M. Curtis, Acting Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI) announced the charges.
“As alleged, based on false promises the defendants bilked investors out of millions of dollars,” stated United States Attorney Breon Peace. “They lied about how they made money and promised near-certain returns on investment when, in truth, they charged astonishing markups, at times greater than 95%, and defrauded investors. My office will vigorously prosecute those who seek to take advantage of the investing public for their own greed.”
Mr. Peace expressed his appreciation to the Securities and Exchange Commission (SEC), Washington, D.C. Home Office, for its significant cooperation and assistance during the investigation.
“These five defendants allegedly charged undisclosed markup fees to defraud almost $60 million from investors of Max Infinity, routing nearly half of the proceeds to their personal wallets. Luring in investors based on false success stories and concealing additional expenses betrays their belief that the money is being handled appropriately. The FBI will continue to disrupt fraudulent schemes rooted in deceit and investigate anyone seeking to make an unlawful quick buck at the cost of another,” stated FBI Director Curtis.
As set forth in the indictment, Max Infinity was a New York City based manager of investment funds that bought and sold stock issued by privately held companies that anticipated an initial public offering (IPO). Principals Cangialosi, Girgis, and Sarabella, along with sales team leaders Carini and Otar, engaged in a scheme to defraud investors and prospective investors in Max Infinity by misrepresenting, among other things, that Max Infinity took no upfront fees, was registered with the SEC, and sourced pre-IPO shares directly from the issuing companies. The defendants also fabricated Max Infinity’s track record – claiming on their website and to investors that Max Infinity had returned significant profits to investors in prior successful IPOs—when in reality, Max Infinity had no such previous investments. Additionally, Cangialosi and Girgis were both, at various times, under suspension by the Financial Industry National Regulatory Authority (FINRA) and hid their involvement in Max Infinity from investors.
Even though investors were told that Max Infinity did not make money until customers made money, Cangialosi, Girgis, and Sarabella paid themselves distributions and paid salespeople commissions out of excessive, undisclosed markups charged to investors. From these distributions, Sarabella directed the purchase of more than a million dollars in luxury watches. Salespeople also utilized scripts that falsely assured investors that the firm had an impressive track record of success in prior IPO deals, conducted extensive due diligence, and had specialized access to top deals. At the principals’ direction, salespeople lulled investors into a false sense of security by falsely claiming SEC oversight over their fund and its investments.
The charges in the indictment are allegations, and the defendants are presumed innocent unless and until proven guilty.
In July 2022, Mr. Peace was selected as the Chairperson of the White Collar Fraud subcommittee for the Attorney General’s Advisory Committee (AGAC). As the leader of the subcommittee, Mr. Peace plays a key role in making recommendations to the AGAC to facilitate the prevention, investigation and prosecution of various financially motivated, non-violent crimes including wire fraud, such as the crimes that defendants allegedly committed.
If you believe that you or someone you know was victimized by the defendants, please contact the FBI by email at: [email protected] or by calling 1-800-CALL-FBI.
The government’s case is being handled by the Office’s Business & Securities Fraud Section. Assistant United States Attorneys Sarah M. Evans, Eric Silverberg, John O. Enright and Lorena Michelen are in charge of the prosecution, with assistance from Paralegal Specialists Sarah Burn and Liam McNett.
The Defendants:
JOHN CANGIALOSI
Age: 43
Manalapan, New JerseyPETER GIRGIS
Age: 43
Staten Island, New YorkGENE SARABELLA (also known as “Jerry”)
Age: 36
Monroe, New JerseyENRICO CARINI (also known as “Ed”)
Age: 39
Staten Island, New YorkCANER OTAR (also known as “John”)
Age: 37
Brooklyn, New YorkE.D.N.Y. Docket No. 24-CR-363
Pakistani National with Ties to Iran Indicted on Terrorism Charge in Connection with Foiled Plot to Assassinate U.S. Politicians and Government OfficialsRead the Press Release
Yesterday, in federal court in Brooklyn, an indictment was filed charging Asif Merchant, also known as “Asif Raza Merchant,” with attempting to commit an act of terrorism transcending national boundaries and murder-for-hire as part of a scheme to assassinate a politician or U.S. government official on U.S. soil. Law enforcement foiled the plot before any attack could be carried out. Merchant was previously arrested and charged by complaint in July 2024. Merchant was ordered detained and is currently in federal custody. If convicted, Merchant faces up to life in prison.
Merrick B. Garland, United States Attorney General; Breon Peace, United States Attorney for the Eastern District of New York; and Christie M. Curtis, Acting Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the indictment.
“The Justice Department will not tolerate Iran’s efforts to target our country’s public officials and endanger our national security,” said Attorney General Merrick B. Garland. “As these terrorism and murder for hire charges against Asif Merchant demonstrate, we will continue to hold accountable those who would seek to carry out Iran’s lethal plotting against Americans.”
“As alleged, Merchant orchestrated a plot to assassinate U.S. politicians and government officials. Today’s indictment is a message to terrorists here and abroad that my Office and the Department of Justice will continue to take all steps necessary to protect the country against foreign threats,” stated United States Attorney Peace.
Mr. Peace expressed his appreciation to the FBI’s Field Offices in Dallas, Houston, Tampa, Boston, Washington D.C., Chicago and Albany for their partnership on this case. Mr. Peace also expressed his appreciation to the New York City Police Department, the U.S. Attorney’s Office for the Southern District of Texas and the U.S. Customs and Border Protection for their assistance.
“Merchant’s efforts to allegedly recruit criminal associates for the murder of American politicians are representative of the various threats our nation can face from afar. The formidable efforts of our office ensured that the defendant was unsuccessful in executing his plan and demonstrate FBI New York’s commitment to curtailing the threats to our country and its citizens that come from both within and outside our borders,” stated FBI Assistant Director in Charge Curtis.
As set forth in court filings, in approximately April 2024, after spending time in Iran, Merchant arrived in the United States from Pakistan and contacted a person he believed could assist him with the scheme to kill a politician or government official. That person reported Merchant’s conduct to law enforcement and became a confidential source (the CS).
In early June, Merchant met the CS in New York and explained his assassination plot. Merchant told the CS that the opportunity he had for the CS was not a one-time opportunity and would be ongoing. Merchant then made a “finger gun” motion with his hand, indicating that the opportunity was related to a killing. Merchant further stated that the intended victims would be “targeted here,” meaning in the United States. Merchant instructed the CS to arrange meetings with individuals whom Merchant could hire to carry out these actions. Merchant explained that his plot involved multiple criminal schemes: (1) stealing documents or USB drives from a target’s home; (2) planning a protest; and (3) killing a politician or government official.
At that meeting, Merchant began planning potential assassination scenarios and quizzed the CS on how he would kill a target in the various scenarios. Specifically, Merchant asked the CS to explain how the target would die in different scenarios. Merchant told the CS that there would be “security [] all around” the person.
Merchant stated that the assassination would occur after he left the United States and he would communicate with the CS from overseas using code words. The CS asked whether Merchant had spoken to the unidentified “party” back home with whom Merchant was working. Merchant responded that he had and that the party back home told him to “finalize” the plan and leave the United States.
In mid-June, Merchant met with the purported hitmen, who were in fact undercover U.S. law enforcement officers (the UCs) in New York. Merchant advised the UCs that he was looking for three services from them: theft of documents, arranging protests at political rallies and for them to kill a “political person.” Merchant stated that the hitmen would receive instructions on who to kill either the last week of August or the first week of September, after Merchant had departed the United States.
Merchant then began arranging means to obtain $5,000 in cash to pay the UCs as an advance payment for the assassination, which he eventually received with assistance from an individual overseas. On June 21, Merchant met with the UCs in New York and paid them the $5,000 advance. After Merchant paid the $5,000 to the UCs, one of the UCs stated, “now we’re bonded,” to which Merchant responded “yes.” The UC then stated “Now we know we’re going forward. We’re doing this,” to which Merchant responded “Yes, absolutely.”
Merchant subsequently made flight arrangements and planned to leave the United States on Friday, July 12, 2024. On July 12, law enforcement agents placed Merchant under arrest before he could leave the country.
The charges in the indictment are allegations and Merchant is presumed innocent unless and until proven guilty.
The case is being handled by the Office’s National Security & Cybercrime Section. Assistant United States Attorneys Sara K. Winik, Gilbert Rein and Douglas Pravda are in charge of the prosecution, with assistance from Trial Attorneys David Smith and Joshua Champagne of the Department of Justice’s Counterterrorism Section of the National Security Division.
The Defendant:
ASIF MERCHANT (also known as “Asif Raza Merchant”)
Age: 46
Karachi, Pakistan; Tehran, IranE.D.N.Y. Docket No. 24-CR-362 (EK)
Seven Members and Associates of the Folk Nation Gangster Disciples Charged in Connection with Drive-By Shooting Committed on Father's Day 2022 and Related Firearms OffensesRead the Press Release
A four-count indictment was unsealed today in the United States District Court for the Eastern District of New York charging Kwyme Waddell, Paolo Alfarobarber, Rahim Frank, Mikey Jemison, Sebastian Jocelyn, Joel Myrie and Jahi Nimmons with violent crimes in-aid-of racketeering — including murder conspiracy and attempted murder — and related firearms offenses. As alleged, the defendants are members and associates of the Folk Nation Gangster Disciples (GD), and specifically of GD subset No Love City (NLC).
Defendants Alfarobarber, Frank, Jemison, Jocelyn, and Nimmons were arrested this morning in Brooklyn and Bridgeport, Connecticut and are scheduled to be arraigned this afternoon before United States Magistrate Judge Joseph A. Marutollo at the federal courthouse in Brooklyn. Defendant Waddell was already in federal custody on a prior charge of being a felon-in-possession of ammunition after a March 2022 shooting and will be arraigned at a later date. Myrie is still at large.
Breon Peace, United States Attorney for the Eastern District of New York and Christie M. Curtis, Acting Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Edward A. Caban, Commissioner, New York City Police Department (NYPD) announced the charges and arrests.
“We allege that, rather than celebrating families on Father’s Day, the defendants terrorized Brooklyn residents by spraying bullets onto a residential street with total disregard for human life,” stated U.S. Attorney Peace. “My Office will continue to use all tools available to dismantle violent gangs, like the Folk National Gangster Disciples, and hold their members accountable for the havoc they cause to our communities.”
Mr. Peace expressed his appreciation to FBI/NYPD Metro Safe Streets Task Force and the NYPD’s Gun Violence Suppression Division for their work and assistance in this investigation and prosecution.
“Seven members and associates of Folk Nation Gangster Disciples allegedly conspired to orchestrate the attempted murder of a rival member by firing two firearms into a crowded neighborhood street. Their alleged actions fueled a decade-long rivalry and posed an extreme threat to the innocent bystanders celebrating Father’s Day. With our law enforcement partners, the FBI remains dedicated to investigating and apprehending all gangs who utilize gun violence to satisfy territorial disputes and threaten the safety of our communities,” stated FBI Assistant Director in Charge Curtis.
“Targeting and tearing down gangs, as well as preventing the violence associated with their illegal activities, remains a top priority for the NYPD,” stated NYPD Commissioner Caban. “I commend the tireless efforts of our Gun Violence Suppression Division and express gratitude to all of our law enforcement partners for their unwavering dedication to our shared mission of public safety.”
As alleged in the indictment and other court documents, on June 19, 2022 – which was Father’s Day – the defendants engaged in a drive-by shooting during which a 28-year-old victim was shot and injured. NLC leaders Waddell and Alfarobarber jumped into a stolen Dodge Charger with younger gang members Jocelyn and Myrie. The foursome drove to Canarsie in a three-car convoy with Frank, Jemison and Nimmons to continue a decade’s long feud with rivals in the area. After identifying a group of people on residential East 94th Street between Avenues L and K, the defendants shot multiple times into the group on the sidewalk using two firearms, striking the victim, who survived his injuries after being hospitalized.
The charges in the indictment are merely allegations, and the defendants are presumed innocent unless and until proven guilty.
This indictment is part of the United States Attorney’s Office for the Eastern District of New York’s focus on dismantling the Folk Nation Gangster Disciples (GD), under which the Office has brought numerous prosecutions against members and associates of GD in coordination with federal and state law enforcement partners, including United States v. Britton, No. 23-CR-406 (LDH) (GD leader charged with false statements and obstruction); United States v. Zeigler, No. 23-CR-114 (MKB) (GD member charged with firearm possession in connection with a shooting); United States v. Oluwagbenga Agoro, No. 21-CR-166 (WFK) (relating to a March 14, 2021 use of threatened use of force in furtherance of a plan to commit extortion); United States v. Powell, No. 21-CR-205 (LDH) (GD member charged with firearm possession in connection with a shooting); United States v. Cummings, No. 21-CR-406 (CBA) (GD associate charged with possessing multiple firearms on multiple separate occasions); United States v. Apollon, No. 21-CR-636 (DG) (GD member charged with robbery of vehicles from parking garage where parking attendant was permanently injured); and United States v. Brown, No. 20-CR-293 (WFK) (eleven GD defendants charged with racketeering offenses for seven gang-related shootings in 2020).
This case is also part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Merrick Garland has enhanced PSN as part of the Department’s focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
The government’s case is being handled by the Office’s Organized Crime and Gangs Section. Assistant United States Attorneys Dana Rehnquist, Sophia Suarez and Daniel Marcus are in charge of the prosecution, with the assistance of Paralegal Specialist Theodore Rader.
The Defendants:
KWYME WADDELL
Brooklyn, New YorkPAOLO ALFAROBARBER
Bridgeport, ConnecticutRAHIM FRANK
Brooklyn, New YorkMIKEY JEMISON
Brooklyn, New YorkSEBASTIEN JOCELYN
Bridgeport, ConnecticutJOEL MYRIE
Brooklyn, New YorkJAHI NIMMONS
Brooklyn, New YorkE.D.N.Y. Docket No. 24-CR-351 (FB)
Former New York City Department of Education CEO of School Support Services and Three Business Owners Sentenced to Prison for Corruption and BriberyRead the Press Release
Earlier today, in federal court in Brooklyn, Eric Goldstein, the former Chief Executive Officer of the New York City Department of Education’s (NYC DOE) Office of School Support Services, and Blaine Iler, Michael Turley and Brian Twomey, the owners of SOMMA Food Group (SOMMA), were sentenced by U.S. Circuit Judge Denny Chin sitting by designation to prison terms for multiple counts of bribery and bribery conspiracy relating to programs receiving federal funds. Goldstein was sentenced to 2 years, Iler to 12 months and a day along with a $10,000 fine, Turley to 15 months, and Twomey to 15 months and a $10,000 fine. The four defendants were convicted by a federal jury in June 2023 following a four-week trial.
Breon Peace, United States Attorney for the Eastern District of New York, and Christie M. Curtis, Acting Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the sentences.
“Eric Goldstein corruptly abused his high-ranking position of trust as a public official and pursued lucrative bribes at the expense of school children, many of whom rely on healthy meals provided by the New York City Department of Education,” stated United States Attorney Peace. “Great responsibility came with overseeing the school system’s food operations, but shamefully, Goldstein prioritized lining his pockets with payoffs from his co-defendants to ensure the DOE purchased their products and that their food stayed in the schools even after plastic, bones and metal were found in the chicken served to schoolchildren and teachers. Today’s jail sentences should serve as a lesson to these defendants and others that public corruption, especially acts that jeopardize the well-being of our children, will be punished.”
FBI Acting Assistant Director in Charge Curtis stated: “Eric Goldstein abused his position as the DOE Chief Executive Officer of Office of School Support Services to accept nearly $100,000 in bribes from co-defendants to knowingly serve unfit lunch choices for consumption to students and teachers. Goldstein ignored numerous complaints from the school and valued personal profits over the wellbeing of our city’s schoolchildren, allowing them to ingest plastic and other inedible items. May today’s sentencing reiterate the FBI’s continued determination to target any public official who prioritizes illicit financial compensation over the health of our city.”
In 2015 and 2016, Iler, Turley and Twomey entered into a corrupt arrangement with Goldstein, whereby SOMMA would provide the capital to a business named Range Meats Supply Co. (RMSCO). Specifically, over a period of 14 months, Iler, Turley and Twomey transferred approximately $96,670 to RMSCO for Goldstein’s benefit, including payments to Goldstein’s divorce attorney and father. In exchange, Goldstein, who served as the CEO of the NYC DOE’s Office of Food and Nutrition Services (SchoolFood), used his position to ensure that the NYC DOE purchased and served SOMMA’s products to thousands of schoolchildren, including chicken tenders that were found to contain foreign objects, including plastic. Goldstein also made sure that SchoolFood’s approval of SOMMA’s products was expedited and that disputes between SOMMA and the NYC DOE were resolved in SOMMA’s favor.
The largest bribe payment was made in the fall of 2016, when SchoolFood had stopped serving SOMMA’s chicken tenders because a NYC DOE employee choked on a bone that had not been removed from a SOMMA chicken tender. Goldstein, who, as CEO, had final approval as to whether and when SOMMA’s chicken tenders would be allowed back in schools, delayed making any decision until Iler, Turley, and Twomey had agreed to transfer SOMMA’s ownership interest in RMSCO to him, as well as to transfer $66,670 to a bank account in RMSCO’s name that Goldstein had opened and controlled. Following weeks of negotiations, on November 29, 2016, Iler, Turley and Twomey agreed to pay the bribe Goldstein was soliciting and, one day later, on November 30, 2016, Goldstein approved reintroduction of SOMMA’s chicken products in schools. SOMMA’s products were served in schools until April 2017 when, following repeated complaints from students and staff that the chicken tenders continued to contain foreign objects, SchoolFood decided to remove all SOMMA food products from New York City public schools.
The government’s case is being handled by the Office’s Public Integrity Section. Assistant United States Attorneys Robert Polemeni, Andrew Grubin, Laura Zuckerwise and Kaitlin McTague are in charge of the prosecution, with assistance from Paralegal Specialists Kavya Kannan and Rachel Friedman.
The Defendants:
ERIC GOLDSTEIN
Age: 56
New Rochelle, New YorkBLAINE ILER
Age: 37
Dallas, TexasMICHAEL TURLEY
Age: 54
Fayetteville, ArkansasBRIAN TWOMEY
Age: 51
Dallas, TexasE.D.N.Y. Docket No. 21-CR-550 (DC)
Two MS-13 Gang Associates Plead Guilty in Connection with Murder of 17-Year-OldRead the Press Release
Juan Amaya-Ramirez and Oscar Flores-Mejia pleaded guilty today in connection with the April 23, 2018 murder of 17-year-old Andy Peralta in Kissena Park in Flushing, Queens. As part of their guilty pleas, the defendants admitted to murdering Peralta to gain entrance into MS-13 and also admitted to crimes including cyberstalking resulting in death, murder conspiracy in-aid-of racketeering, assault conspiracy in-aid-of racketeering, and assault in-aid-of racketeering. Under the terms of their plea agreements, the defendants will be sentenced to at least 30 years’ imprisonment and could be sentenced up to life imprisonment. The proceeding was held before United States Magistrate Judge Joseph A. Marutollo.
Breon Peace, United States Attorney for the Eastern District of New York, Christie M. Curtis, Acting Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI), Darren B. McCormack, Acting Special Agent in Charge, Homeland Security Investigations, New York (HSI), and Edward A. Caban, Commissioner, New York City Police Department (NYPD), announced the guilty pleas.
“The senseless murder of Andy Peralta exemplifies the casual cruelty of MS-13’s violence, and with their pleas today the defendants acknowledge their role in this brutal event,” stated United States Attorney Peace. “This Office and our law enforcement partners will continue to bring justice and safety to affected victims and communities by holding MS-13 members and associates accountable for their terrible crimes.”
“MS-13’s ruthless violence is boundless. The defendants’ admissions to murder serve as a reminder of how the violent nature of street gangs results in countless, senseless deaths,” said HSI New York Acting Special Agent in Charge McCormack. “HSI New York and the entire law enforcement community remain committed to disrupting and dismantling MS-13 and other violent gangs in furtherance of public safety in our communities.”
“NYPD investigators, in close collaboration with our law enforcement colleagues, pledge to remain tireless in pursuing justice against gang members, wherever and whenever their barbaric acts are committed,” stated NYPD Commissioner Caban. “I applaud and commend our various federal partners for their vital efforts, which ultimately delivered today’s successful outcome.”
As detailed in court documents, Amaya-Ramirez, Flores-Mejia and a third MS-13 associate plotted to kill Peralta because they wanted to join MS-13 and mistakenly believed that Peralta was a member of a rival gang. The defendants recruited Amaya-Ramirez’s then-girlfriend, Leyla Carranza, to lure Peralta to Kissena Park in Flushing, Queens, so he could be murdered. Carranza communicated with Peralta on social media and eventually convinced him to meet her in Kissena Park on April 23, 2018. Once inside the park, Peralta was confronted by Amaya-Ramirez, Flores-Mejia, and the third MS-13 associate. The three men beat, stabbed, and strangled Peralta to death. After the murder, Amaya-Ramirez took a photograph of himself and his coconspirators flashing MS-13 hand signs over Peralta’s body.
Carranza previously pleaded guilty to cyberstalking resulting in the death of Peralta and faces a maximum sentence of life imprisonment at sentencing.
This case was investigated as part of the ongoing efforts of the Organized Crime Drug Enforcement Task Forces (OCDETF), a partnership that brings together the combined expertise of federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking, gangs and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
Today’s guilty pleas are the latest in a series of federal prosecutions by the United States Attorney’s Office for the Eastern District of New York targeting members of the MS-13. Since 2003, hundreds of MS-13 members, including dozens of clique leaders, have been convicted on federal felony charges in the Eastern District of New York. A majority of those MS-13 members have been convicted on federal racketeering charges for participating in murders, attempted murders and assaults. Since 2009, this Office has obtained indictments charging MS-13 members with carrying out more than 65 murders in the district and has convicted dozens of MS-13 leaders and members in connection with those murders. These prosecutions are the product of investigations led by our law enforcement partners.
The government’s case is being handled by the Office’s Organized Crime and Gangs Section. Assistant United States Attorneys Jonathan Siegel, Michael W. Gibaldi, Anna Karamigios and Sophia Suarez are in charge of the prosecution, with the assistance of Paralegal Specialist Eleanor Jaffe-Pachuilo.
Defendants:
JUAN AMAYA-RAMIREZ (also known as “Cadaver”)
Age: 26
Fresh Meadows, QueensOSCAR FLORES-MEJIA (also known as “Chamuco”)
Age: 24
Elmhurst, QueensDefendant who previously pleaded guilty:
LEYLA CARRANZA
Age: 23
Richmond, VirginiaE.D.N.Y. Docket No. 20-CR-228 (S-2) (LDH)
American Airlines Mechanic Sentenced to 9 Years in Prison for Conspiring to Import Cocaine Bricks in Compartment Under Cockpit of JetlinerRead the Press Release
UPDATE
The defendant’s conviction for the conduct described in the press release below was vacated by the United States Court of Appeals for the Second Circuit on January 23, 2026. See 20-CR-219 (DLI) ECF No. 169.
Earlier today, at the federal courthouse in Brooklyn, Paul Belloisi, a former American Airlines mechanic at John F. Kennedy International Airport (JFK Airport), was sentenced by United States District Judge Dora L. Irizarry to 108 months in prison for his role in a conspiracy to import and possess cocaine. Belloisi was convicted in May 2023 following a one-week jury trial of all three counts of an indictment charging him with conspiring to possess and import cocaine, and importing cocaine.
Breon Peace, United States Attorney for the Eastern District of New York, Darren B. McCormack, Acting Special Agent-in-Charge, Homeland Security Investigations, New York (HSI), and Francis J. Russo, Director of Field Operations, U.S. Customs and Border Protection, New York Field Office (CBP), announced the sentence.
“The defendant abused his insider position at JFK Airport to help smuggle more than 25 pounds of cocaine into the United States in a highly sensitive electronics compartment of an international aircraft,” stated United States Attorney Peace. “This conduct not only furthers the trafficking of drugs that harms our communities, but also poses a serious threat to the security of a vital border crossing in our district and our transportation infrastructure. Today’s sentence demonstrates that the government takes these threats very seriously, and those who work in trusted positions at our airports and in other critical industries must know that they face serious consequences for crimes of corruption.”
“Paul Belloisi put his personal gain before the safety of the aviation industry by abusing his position to participate in a scheme to import over 25 pounds of cocaine into the U.S., storing smuggled narcotics within sensitive areas of passenger airplanes. His demise should send a message to anyone attempting to exploit the aviation industry: HSI New York and our law enforcement partners are committed to maintain the safety of the U.S. domestic and international transportation infrastructure,” stated HSI New York Acting Special Agent in Charge McCormack. “I am proud to stand alongside the Eastern District of New York and CBP in bringing this corrupt ‘inside man’ to justice.”
“This case serves as a great example of collaborative law enforcement efforts to combat international narcotics trafficking conspirators. U.S. Customs and Border Protection thanks our partners at HSI and the USAO for their continued cooperation,” stated CBP Director of Field Operations Russo.
On February 4, 2020, American Airlines flight 1349 arrived at JFK Airport’s Terminal 8 from Montego Bay, Jamaica. The aircraft was selected for a routine search by CBP officers from the JFK Airport Anti-Terrorism Contraband Enforcement Team. The officers found 10 bricks of cocaine weighing 25.56 pounds hidden inside an electronics compartment on the underside of the cockpit. The cocaine was replaced with fake bricks and sprayed with a substance that glows when illuminated with a special black light. CBP officers and HSI special agents placed the aircraft under surveillance from a distance and shortly before it was scheduled to take off for its next flight, they observed Belloisi drive up and pull himself inside the electronics compartment. Belloisi was confronted by law enforcement who observed his gloves glowing under the black light indicating he had handled the fake bricks. Belloisi was also carrying an empty tool bag and the lining of his jacket had cutouts sufficiently large enough to hold the bricks. The cocaine found in the aircraft had a street value of more than $250,000.
The case is being handled by the Office’s International Narcotics and Money Laundering Section. Assistant United States Attorneys Robert Pollack and Margaret Schierberl are in charge of the prosecution, with the assistance of Paralegal Specialist Sophia Cronin.
The Defendant:
PAUL BELLOISI
Age: 56
Smithtown, New YorkE.D.N.Y. Docket No. 20-CR-219 (DLI)
Registered Sex Offender Sentenced to 45 Years' Imprisonment for Attempting to Sexually Exploit Minors and Distributing Child PornographyRead the Press Release
Earlier today, in federal court in Brooklyn, Davis Burgos-Collazo was sentenced by United States District Judge Pamela K. Chen to 45 years in prison for five counts of attempted sexual exploitation of a minor, two counts of distributing child pornography, one count of accessing child pornography with intent to view it and one count of committing a felony sexual offense involving minors while being a registered sex offender. As part of the sentence, the Court ordered Burgos-Collazo to pay restitution of $33,000. Burgos-Collazo was convicted by a federal jury in July 2022 following a one-week trial.
Breon Peace, United States Attorney for the Eastern District of New York and Christie M. Curtis, Acting Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the sentence.
“It has been proven that the defendant is an extremely dangerous predator, who, while being a registered sex offender, coerced a 10 year old child to perform sex acts for him on Instagram and threatened the child when she pleaded that he leave her alone. And sadly, she was not the only vulnerable victim,” stated United States Attorney Peace. “With today’s sentence, the goal of incapacitating this master manipulator and sextortionist has been achieved. We are dedicated to protecting our children from those who weaponize social media in order to sexually exploit and harm them.”
As set forth in the government’s sentencing memorandum and related court proceedings, in 2020, Burgos-Collazo used at least 26 Instagram accounts to attempt to sexually exploit children as young as nine years old. The defendant enticed the victims by pretending to be a modeling scout and by using accounts with names like “future models” and “preteen beauty pics.” After the defendant coerced a 10 year old victim into performing live sex acts for him on Instagram and she pleaded with him to leave her alone, he threatened to post a naked picture of her online for her friends to see if she refused to provide him with additional sexually explicit materials. The FBI recovered over 100 photos and videos of child pornography on the defendant’s phone. Burgos-Collazo committed these crimes while he was a registered sex offender. In March 2006, he was convicted of sexually abusing and attempting to sexually abuse multiple minors, all of whom were under the age of eleven, and one as young as seven.
This prosecution is part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
The government’s case is being handled by the Office’s Civil Rights Section. Assistant United States Attorneys Rachel A. Bennek and John O. Enright are in charge of the prosecution, with the assistance of Paralegal Specialist Anna November.
The Defendant:
DAVIS BURGOS-COLLAZO
Age: 45
Queens, New YorkE.D.N.Y. Docket No.: 20-CR-492 (PKC)
Long Island Contractor Pleads Guilty to Fraud in Connection with Hurricane Sandy Recovery FundsRead the Press Release
Alexander Almaraz, the owner of Design Concepts Group LLC (DCG) in Freeport, New York, pleaded guilty today in federal court in Central Islip to conspiracy to commit wire fraud in connection with a scheme to induce individuals to hire him and pay DCG to repair their Hurricane Sandy-damaged homes. The proceeding was held before United States District Judge Joan M. Azrack. When sentenced, Almaraz faces a maximum penalty of 30 years in prison and mandatory restitution to his victims.
Breon Peace, United States Attorney for the Eastern District of New York, Christie M. Curtis, Acting Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Anne T. Donnelly, Nassau County District Attorney, announced the guilty plea.
“After Hurricane Sandy turned their lives upside down, the individuals who hired Almaraz to repair their homes were further harmed by the defendant’s unconscionable fraudulent scheme, which extended the time they were deprived of a livable home,” stated United States Attorney Peace. “With his guilty plea today, Almaraz is no longer outrunning the damage that his personal greed inflicted on a shattered Long Island community and it is my hope that the victims will find some solace in the defendant being held accountable and making full restitution.”
“This defendant took advantage of vulnerable Long Island homeowners at a time of unimaginable loss, purchasing luxury cars and paying off credit cards with funds meant to repair their storm-damaged homes after Hurricane Sandy battered our shores,” stated Nassau District Attorney Donnelly. “Today’s plea holds Almaraz accountable for his greedy scheme, and the restitution he will be ordered to pay is a necessary step towards making his victims whole. I thank our federal partners at the U.S. Attorney’s Office for the Eastern District of New York and the FBI for their continued dedication to investigating and prosecuting fraudsters who exploited Long Island residents in the aftermath of this devastating storm.”
On October 29, 2012, Hurricane Sandy struck New York and New Jersey, causing catastrophic damage to low-lying and coastal areas, including many neighborhoods in the Eastern District of New York. New York residents whose homes were damaged were eligible to receive funding from the Governor’s Office of Storm Recovery through the New York Rising (NYR) program.
According to court documents and Almaraz’s own admissions today, Almaraz entered contracts with homeowners who qualified to receive funds from NYR. As part of these contracts, Almaraz agreed to lift the victims’ homes and set them down on temporary support structures which would permit the foundations of the damaged homes to be removed and new foundations to be installed. After the new foundations were installed, Almaraz was supposed to lower the homes and reconnect the homes’ appliances. Between October 2015 and June 2019, Almaraz agreed to lift the homes of at least 20 customers who had received NYR funding and who collectively paid him approximately $2.5 million. Almaraz convinced many of these victims to move out of their homes and pay him rent to live elsewhere, all the while neglecting their projects and causing greater loss. Additionally, instead of performing the agreed-upon work, Almaraz used the victims’ monies to pay for personal expenses, including credit card bills, land purchased in Kansas City, Missouri, and luxury automobiles, including a Lamborghini, a Porsche and a Jaguar. The defendant’s fraudulent scheme caused more than $1.5 million in losses to NYR and the defendant’s individual victims.
The government’s case is being handled by the Office’s Long Island Criminal Section. Assistant United States Attorney Megan E. Farrell is in charge of the prosecution.
The Defendant:
ALEXANDER ALMARAZ
Age: 56
San Antonio, Texas; formerly of Freeport, Long IslandE.D.N.Y. Docket No. 23-CR-17 (JMA)
Former High-Ranking New York State Government Employee Charged with Acting as an Undisclosed Agent of the People’s Republic of China and the Chinese Communist PartyRead the Press Release
Note: View the indictment here.
An indictment was unsealed today charging Linda Sun, 41, with violating and conspiring to violate the Foreign Agents Registration Act, visa fraud, bringing in aliens, and money laundering conspiracy. Sun is alleged to have acted on behalf of the government of the People’s Republic of China (PRC) and the Chinese Communist Party (CCP). Sun’s husband and co-defendant, Chris Hu, 40, was also charged with money laundering conspiracy, as well as conspiracy to commit bank fraud and misuse of means of identification. Sun and Hu were arrested earlier this morning and were arraigned in federal court in Brooklyn.
“As alleged, while appearing to serve the people of New York as Deputy Chief of Staff within the New York State Executive Chamber, the defendant and her husband actually worked to further the interests of the Chinese government and the CCP,” said U.S. Attorney Breon Peace for Eastern District of New York. “The illicit scheme enriched the defendant’s family to the tune of millions of dollars. Our office will act decisively to prosecute those who serve as undisclosed agents of a foreign government.”
“These indictments demonstrate, yet again, the brazen attempts of the PRC to corrupt our political processes,” said Assistant Director Kevin Vorndran of the FBI's Counterintelligence Division. “As alleged in the indictment, Linda Sun and Chris Hu deceived the highest leadership of New York government to further the political agenda of the Government of China. The FBI, along with our partners, remain committed to protection our democratic institutions from the manipulation of the PRC.”
“Sun is alleged to be an undisclosed agent of the PRC and CCP, using Chinese money and her influence within the state of New York to benefit the Chinese government. Sun and her husband then laundered millions of dollars for the foreign country and used the monetary benefits of this scheme to buy luxury vehicles and million-dollar properties here in New York,” said Special Agent in Charge Thomas M. Fattorusso of IRS Criminal Investigation (IRS-CI) New York. “It is with the unwavering determination of federal law enforcement to root out foreign agents and their schemes that Sun and Hu will now face justice for their criminal acts.”
According to court documents, while working for the New York State (NYS) government – including in high-ranking posts in the Executive Chamber of the New York State government and in multiple state agencies – Sun also acted as an undisclosed agent of the PRC and CCP. Acting at the request of PRC government officials and CCP representatives, Sun engaged in numerous political activities in the interests of the PRC and the CCP, including blocking representatives of the Taiwanese government from having access to high-level New York State officers; changing high-level New York State officers’ messaging regarding issues of importance to the PRC and the CCP; obtaining official New York State proclamations for PRC government representatives without proper authorization; attempting to facilitate a trip to the PRC by a high-level New York State politician and arranging meetings for visiting delegations from the PRC government with NYS government officials.
Additionally, Sun repeatedly violated internal rules and protocols within the New York State government to provide improper benefits to PRC and CCP representatives, including by providing unauthorized invitation letters from the office of high-level New York State officers that were used to facilitate travel by PRC government officials into the United States for meetings with New York State government officials. Sun’s unauthorized invitation letters for the PRC government delegation constituted false statements made in connection with immigration documents and induced the foreign citizens into unlawfully entering the United States.
Sun never registered as a foreign agent with the Attorney General, and in fact actively concealed that she took actions at the order, request or direction of PRC government and CCP representatives.
In return for these and other actions, Sun received substantial economic and other benefits from representatives of the PRC government and the CCP, including the facilitation of millions of dollars in transactions for the PRC-based business activities of Sun’s husband and co-defendant Chris Hu; travel benefits; tickets to events; promotion of a close family friend’s business; employment for Sun’s cousin in the PRC; and Nanjing-style salted ducks prepared by a PRC government official’s personal chef that were delivered to the residence of Sun’s parents. Sun and Hu laundered the monetary proceeds of this scheme to purchase, among other items, real estate property in Manhasset, New York, currently valued at $4.1 million, a condominium in Honolulu, currently valued at $2.1 million, and various luxury automobiles, including a 2024 Ferrari. Sun never disclosed any benefits she received from representatives of the PRC government and the CCP to the New York State government, as she was required to do as a New York State government employee.
As alleged, Hu also laundered unlawful proceeds through bank accounts opened in the name of a close relative but that were actually for Hu’s exclusive use. To open these accounts, Hu unlawfully used an image of the relative’s driver’s license.
The FBI is investigating the case with assistance from the IRS.
Assistant U.S. Attorneys Alexander A. Solomon, Robert Pollack and Laura Mantell for the Eastern District of New York are prosecuting the case with the assistance of Trial Attorney Scott Claffee of the National Security Division’s Counterintelligence and Export Control Section and Litigation Analyst Mary Clare McMahon.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Former High-Ranking New York State Government Employee Charged with Acting as an Undisclosed Agent of the People's Republic of China and the Chinese Communist PartyRead the Press Release
BROOKLYN, NY – Earlier today, in federal court in Brooklyn, an indictment was unsealed charging Linda Sun with violating and conspiring to violate the Foreign Agents Registration Act, visa fraud, alien smuggling, and money laundering conspiracy. Sun is alleged to have acted on behalf of the government of the People’s Republic of China (the “PRC”) and the Chinese Communist Party (the “CCP”). Sun’s husband and co-defendant Chris Hu was also charged with money laundering conspiracy, as well as conspiracy to commit bank fraud and misuse of means of identification.
Sun and Hu were arrested this morning and are scheduled to be arraigned later today before United States Magistrate Judge Peggy Kuo.
Breon Peace, United States Attorney for the Eastern District of New York, Matthew G. Olsen, Assistant Attorney General of the Justice Department’s National Security Division, Christie M. Curtis, Acting Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Thomas M. Fattorusso, Special Agent in Charge, Internal Revenue Service-Criminal Investigation (IRS-CI), announced the prosecution.
“As alleged, while appearing to serve the people of New York as Deputy Chief of Staff within the New York State Executive Chamber, the defendant and her husband actually worked to further the interests of the Chinese government and the CCP,” stated United States Attorney Breon Peace. “The illicit scheme enriched the defendant’s family to the tune of millions of dollars. Our Office will act decisively to prosecute those who serve as undisclosed agents of a foreign government.”
Mr. Peace expressed his appreciation to the Department of Justice’s National Security Division, the New York State Office of the Inspector General, the New York State Police and the U.S. Department of State’s Diplomatic Security Service (DSS) for their work on the case. He also thanked the New York State Executive Chamber for its cooperation with the investigation.
“As alleged in the indictment, Linda Sun, a former New York State government employee, acted as an undisclosed agent of the Chinese government while her husband, Christopher Hu, facilitated the transfer of millions of dollars in kickbacks for personal gain. Sun wielded her position of influence among executives to covertly promote PRC and CCP agendas, directly threatening our country’s national security. The FBI is committed to protect the American people from any threat actors who seek to influence officials at the direction of foreign entities,” stated FBI Acting Assistant Director Curtis.
“Sun is alleged to be an undisclosed agent of the PRC and CCP, using Chinese money and her influence within the state of New York to benefit the Chinese government. Sun and her husband then laundered millions of dollars for the foreign country and used the monetary benefits of this scheme to buy luxury vehicles and million dollars properties here in New York,” Thomas M. Fattorusso, Special Agent in Charge of IRS CI New York. “It is with the unwavering determination of federal law enforcement to root-out foreign agents and their schemes that Sun and Hu will now face justice for their criminal acts.”
As alleged in the indictment, while working for the New York State government – including in high-ranking posts in the Executive Chamber of the New York State government and in multiple state agencies – Sun also acted as an undisclosed agent of the PRC and the CCP. Acting at the request of PRC government officials and the CCP representatives, Sun engaged in numerous political activities in the interests of the PRC and the CCP, including blocking representatives of the Taiwanese government from having access to high-level New York State officers; changing high-level New York State officers’ messaging regarding issues of importance to the PRC and the CCP; obtaining official New York State proclamations for PRC government representatives without proper authorization; attempting to facilitate a trip to the PRC by a high-level New York State politician; and arranging meetings for visiting delegations from the PRC government with New York State government officials.
Sun also repeatedly violated internal rules and protocols within the New York State government to provide improper benefits to PRC and the CCP representatives, including by providing unauthorized invitation letters from the office of high-level New York State officers that were used to facilitate travel by PRC government officials into the United States for meetings with New York State government officials. Sun’s unauthorized invitation letters for the PRC government delegation constituted false statements made in connection with immigration documents and induced the foreign citizens into unlawfully entering the United States.
Sun never registered as a foreign agent with the Attorney General, and in fact actively concealed that she took actions at the order, request, or direction of PRC government and the CCP representatives.
In return for these and other actions, Sun received substantial economic and other benefits from representatives of the PRC government and the CCP, including the facilitation of millions of dollars in transactions for the PRC-based business activities of Hu; travel benefits; tickets to events; promotion of a close family friend’s business; employment for Sun’s cousin in the PRC; and Nanjing-style salted ducks prepared by a PRC government official’s personal chef that were delivered to the residence of Sun’s parents. Sun and Hu laundered the monetary proceeds of this scheme to purchase, among other items, real estate property in Manhasset, New York currently valued at $4.1 million, a condominium in Honolulu, Hawaii currently valued at $2.1 million, and various luxury automobiles, including a 2024 Ferrari. Sun never disclosed any benefits she received from representatives of the PRC government and the CCP to the New York State government, as she was required to do as a New York State government employee.
Hu also laundered unlawful proceeds through bank accounts opened in the name of a close relative but that were actually for Hu’s exclusive use. To open these accounts, Hu unlawfully used an image of the relative’s driver’s license.
The charges in the indictment are allegations and the defendants are presumed innocent unless and until proven guilty.
The government’s case is being handled by the Office’s National Security & Cybercrime Section. Assistant United States Attorneys Alexander A. Solomon and Robert Pollack are in charge of the prosecution, with the assistance of Trial Attorney Scott Claffee from the National Security Division’s Counterintelligence and Export Control Section and Litigation Analyst Mary Clare McMahon. Assistant U.S. Attorney Laura Mantell of the Office’s Asset Recovery Section is handling forfeiture matters.
The Defendants:
LINDA SUN
Age: 41
Manhasset, New YorkCHRIS HU
Age: 40
Manhasset, New YorkE.D.N.Y. Docket No. 24-CR-346 (BMC)
Two Individuals Charged in Multi-Million Dollar Scheme to Defraud Rideshare Customers, Drivers and OthersRead the Press Release
Earlier today, in federal court in Brooklyn, an indictment was unsealed charging Eliahou Paldiel and Carlos Arturo Suarez Palacios (Suarez) with wire fraud and money laundering conspiracies relating to a wide-ranging scheme in which the defendants sold hacked smartphones and fraudulent applications to more than 800 rideshare drivers (Driver Co-conspirators). The applications enabled the Driver Co-conspirators to “spoof” GPS locations to fraudulently obtain “surge” fees and to otherwise manipulate legitimate rideshare applications to enrich themselves to the detriment of riders, law-abiding drivers and rideshare companies. If convicted, the defendants face up to 20 years in prison on each of the two counts.
This morning, Paldiel was arrested in Brooklyn and Suarez was arrested in Brick Township, New Jersey. The defendants will be arraigned later this afternoon before United States Magistrate Judge Marcia M. Henry.
Breon Peace, United States Attorney for the Eastern District of New York, and Christie M. Curtis, Acting Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the arrests and charges.
“As alleged, the defendants sought to enrich themselves by corrupting the rideshare market at the expense of unsuspecting passengers and hardworking drivers who play by the rules,” stated United States Attorney Peace. “My Office remains steadfast in ensuring that, no matter how complex the scheme, individuals who violate the law will be caught and held accountable. The defendants learned an important lesson in these charges: there is no such thing as a free ride.”
“Eliahou Paldiel and Carlos Suarez allegedly developed a rideshare application that fraudulently manipulated a driver’s GPS location to obtain unlawful surge fare pricing, defrauding customers and legitimate drivers. For almost six years, this alleged conspiracy offered an unfair financial advantage to more than 800 participants and disrupted the integrity of nationwide rideshare services, earning the participants more than $40 million. The FBI will continue to dismantle all fraudulent schemes, even as criminals attempt to create innovative scams for selfish gains,” stated FBI Acting Assistant Director in Charge Curtis.
Rideshare Company-1 is a multinational company headquartered in the United States that provides ridesharing services. It operates primarily through its smartphone application (the Rideshare Company-1 Application), connecting users with drivers for on-demand transportation and delivery services.
As alleged in the indictment and other court filings, between November 2018 and August 2024, Paldiel and Suarez engaged in a scheme to defraud Rideshare Company-1’s users and drivers by causing passengers to collectively pay millions of dollars in fraudulent “surge” fees to hundreds of participating Driver Co-conspirators, and depriving legitimate rideshare drivers of their true share of “surge” fares and the most lucrative trips. In addition, the fraudulent devices and applications sold by the defendants for profit enabled the Driver Co-conspirators to cherry-pick high-fare rides by obtaining proprietary information and to “queue” in areas where they were not physically present.
The defendants allegedly sold scheme applications to Driver Co-conspirators on manipulated—also known as “jailbroken” or “rooted”—cellular devices (the Scheme Devices). A jailbroken or rooted cellular device has had its operating system security restrictions modified or removed, thereby allowing the installation of software, including applications, that the device manufacturer had not made available for the device. Driver Co-conspirators utilized the Rideshare Company-1 Application on their Scheme Devices.
Fake GPS “Spoofing” App
Fake GPS was a GPS spoofing application developed by the defendants and others. Fake GPS enabled Driver Co-conspirators to manipulate or “spoof” their locations within the Rideshare Company-1 Application and make it appear as if they were located in an area with surging fares when, in fact, they were not.Screwber App
Screwber is an application developed by the defendants and others that provided Driver Co-conspirators with information about prospective Rideshare Company-1 rides that was not otherwise available to Rideshare Company-1 drivers prior to accepting such rides. For example, Screwber enabled Driver Co-conspirators to obtain prospective riders’ destinations and approximate fares for prospective trips, thereby allowing Driver Co-conspirators to accept or decline the prospective rides based on information to which they were otherwise not entitled and, in turn, cherry-pick only the most profitable and lucrative rides offered to them through the Rideshare Company-1 Application.Rideshare Application
The defendants caused outdated versions of the Rideshare Company-1 Application to be downloaded onto the Scheme Devices provided to Driver Co-conspirators. By installing outdated versions of the Rideshare Company-1 Application, the defendants ensured that the Fake GPS and Screwber applications were not detected by security features implemented in newer versions of the Rideshare Company-1 Application.As part of the scheme, the defendants sent Driver Co-conspirators information about how to avoid detection, such as the following: “Using 2 iphones with FakeGPS is very very risky. If you need FakeGPS for airport I recommend doing it one time a day. Do it when you wake up in the morning before you go to the airport.” The defendants also spoke with one another about their strategy to profit from the Driver Co-conspirators. For example, on or about November 2, 2018, Suarez wrote to Paldiel, “You know Screwber is like drugs .. once you get into it you’ll get withdrawals when you can’t get your fix.” In another message, Paldiel wrote to Suarez regarding the Driver Co-conspirators, “I get them hooked on the software, even a drug deal[er] throws in a few extra grams of weed in the beginning.”
During the course of the scheme, the Driver Co-conspirators, using the defendants’ fraudulent devices and applications, allegedly earned over approximately $40 million from rideshare customers. The defendants received more than $1.5 million from Driver Co-conspirators through one peer-to-peer payment service alone.
If you have information related to this case, please contact FBI at [email protected]
The charges in the indictment are allegations, and the defendants are presumed innocent unless and until proven guilty. If convicted, the defendants face up to 20 years in prison on each of the two counts.
In July 2022, Mr. Peace was selected as the Chairperson of the White Collar Fraud subcommittee for the Attorney General’s Advisory Committee (AGAC). As the leader of the subcommittee, Mr. Peace plays a key role in making recommendations to the AGAC to facilitate the prevention, investigation and prosecution of various financially motivated, non-violent crimes including wire fraud and money laundering conspiracies—the crimes that the defendants committed in this case.
The government’s case is being handled by the Office’s Business and Securities Fraud Section. Assistant United States Attorneys Matthew R. Galeotti, Dana Rehnquist and Elias Laris are in charge of the prosecution, with assistance from Paralegal Specialist Madison Bates.
The Defendants:
ELIAHOU PALDIEL
Age: 52
Queens, New YorkCARLOS ARTURO SUAREZ PALACIOS
Age: 54
Brick Township, New JerseyE.D.N.Y. Docket No. 24-CR-329 (MMH) (ARR)
Employee of Brooklyn Moving Company Sentenced for Defrauding CustomersRead the Press Release
Earlier today, in federal court in Brooklyn, Andre Prince was sentenced by United States Circuit Judge Denny Chin to 24 months in prison for his participation in a fraudulent moving company scheme. Prince was convicted in December 2023 of conspiracy to commit wire fraud following a one-week trial. As part of the sentence, Prince was ordered to pay forfeiture in the amount of $100,000.
Breon Peace, United States Attorney for the Eastern District of New York, Christie M. Curtis, Acting Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office, and Christopher A. Scharf, Special Agent in Charge, U.S. Department of Transportation, Office of Inspector General, Northeastern Region (DOT-OIG), announced the sentence.
“The defendant enticed victims to use the moving companies he worked for and then held their belongings hostage to substantially higher prices and the threat of auctioning them off unless they agreed to the fraudulent demands,” stated United States Attorney Peace. “For his crime of conviction, it is Prince who will be moving -- to a federal prison. My Office is committed to protecting consumers from costly and fraudulent schemes in the moving industry.”
FBI Acting Assistant Director in Charge Curtis stated: “Andre Prince enticed customers to entrust fraudulent moving companies with their household goods, only to financially extort them with threats of selling their belongings. Prince utilized his skills as a sales representative to prey upon more than 800 victims undergoing a stressful event by boxing them into misleading contracts and false estimates. May the defendant’s move to prison reflect the FBI’s dedication to disrupting widespread fraud schemes and deter future unlawful attempts to monopolize an industry.
“Today’s sentence stemming from the criminal investigation conducted with our law enforcement and prosecutorial partners demonstrates our commitment to detecting and prosecuting fraudulent household goods movers who take advantage of unsuspecting customers by holding their personal belongings hostage,” stated DOT-OIG Special Agent in Charge Scharf. “We will continue our vigorous efforts to root out bad actors from the moving industry and reinforce adherence to Federal laws and regulations designed to protect the public.”
As proven at trial, between at least January 2017 and August 2020, Prince and co-defendant Kristy Mak worked for a number of moving companies controlled by co-defendant Yakov Moroz, which operated under various names including Great Moving USA, Green Movers, New City Moves, Cross Country Moving and Storage, and Movers Consulting. Mak was a customer service representative for the companies and supervised Prince, who, as a senior sales representative was responsible for convincing individuals to choose one of the fraudulent moving companies. The defendants lured customers to these movers by posting fake reviews online and having sales associates offer low-cost transportation of their household goods. After a contract was signed and, in some cases, after the customer’s belongings were loaded on the truck, the movers would spring new expenses on them. If the customer tried contacting the sales associate about the surprise fees, that person was unreachable, and the customers were faced with drivers who threatened to hold their goods hostage unless they paid additional fees which were sometimes double or triple the original estimated cost. In one conversation on the Slack messaging app, Prince reacted to two memes sent to him from another salesperson depicting their scheme to cut off contact with the customer on the day of the move, stating: “[rolling on the floor laughing emoji] that is so accurate.” As a result of the fraudulent scheme, the defendants, together with others, wrongfully obtained more than $3 million from over 800 victims.
Mak, who was convicted at trial of the same wire fraud conspiracy charge as Prince, is awaiting sentencing. Moroz absconded while on pre-trial release and is currently a fugitive.
If you have been the victim of a similar fraud, a complaint can be filed with the Federal Motor Carrier Safety Administration at https://nccdb.fmcsa.dot.gov/nccdb/home.aspx
The government’s case was handled by the Office’s General Crimes Section. Assistant United States Attorneys Arun Bodapati and Elias Laris are in charge of the prosecution with the assistance of Special Agent Rebecca Sidhu and Paralegal Specialist Stephanie Heyward.
The Defendant:
ANDRE PRINCE (also known as “Allen Parks” and “Aaron”)
Age: 45
Taramac, FloridaE.D.N.Y. Docket No. 20-CR-342 (DC)
Dark Web Vendor Pleads Guilty to Distributing Fentanyl Through the MailRead the Press Release
Earlier today, in federal court in Brooklyn, Ryan Scott Cochran, also known as “namedeclined,” pleaded guilty to distributing fentanyl, cocaine and methamphetamine through the United States mail. Today’s proceeding was held before United States District Judge Ramon E. Reyes, Jr. As part of his guilty plea, Cochran agreed to forfeit more than $200,000 in cash, cryptocurrency and money in bank accounts already seized by law enforcement, and agreed to forfeit an additional $900,000 at a later date. When sentenced, the defendant faces a maximum sentence of twenty years’ imprisonment.
Breon Peace, United States Attorney for the Eastern District of New York, announced the guilty plea.
Mr. Peace expressed his appreciation to United States Postal Inspection Service, New York Field Office and San Francisco Field Office; Internal Revenue Service, Oakland Field Office; and the Drug Enforcement Administration, San Francisco Field Office, for their assistance on the case.
According to court documents and facts presented at the guilty plea proceeding, Cochran was a highly rated vendor on numerous dark web marketplaces for more than a decade. Cochran advertised and sold fentanyl, cocaine and methamphetamine, among other drugs, and shipped them throughout the United States and around the world through the United States mail. Cochran also sold fraudulent identification documents and other forged documents, such as health insurance cards, on the dark web.
Assistant United States Attorney Philip Pilmar is in charge of the prosecution with assistance from Paralegal Specialists Thomas Englert and Rachel Friedman.
The Defendant:
RYAN SCOTT COCHRAN, aka “namedeclined”
Age: 34
San Jose, CAE.D.N.Y. Docket No. 24-CR-063 (RER)
Former Federal Correction Officer Pleads Guilty to Smuggling Contraband into Metropolitan Detention Center in BrooklynRead the Press Release
Earlier today, in federal court in Brooklyn, Fabienne Osias, a former federal correction officer employed by the United States Bureau of Prisons (BOP), pleaded guilty to smuggling cell phone chargers into the Metropolitan Detention Center (MDC) in Brooklyn. The proceeding was held before United States Magistrate Judge Marcia M. Henry. When sentenced, Osias faces up to one year in prison. Osias resigned from the BOP on August 23, 2024.
Breon Peace, United States Attorney for the Eastern District of New York, and Ryan T. Geach, Special Agent in Charge, Department of Justice, Office of the Inspector General, Northeast Region (DOJ-OIG) announced the arrest and guilty plea.
“The defendant abused her position of trust to smuggle cell phone chargers into the Metropolitan Detention Center,” stated United States Attorney Peace. “Contraband cell phones enable federal inmates to continue committing crimes even while they are in custody at the MDC, which endangers both the jail population and the community at large. This Office will vigorously investigate and prosecute acts of public corruption at the MDC at every level.”
“Contraband, including cell phones, in prisons can be dangerous weapons. The Department of Justice Office of the Inspector General is committed to bringing to justice any Correctional Officer that violates their oath and smuggles contraband into federal prison facilities,” stated DOJ-OIG Special Agent in Charge Geach.
On February 28, 2023, Osias attempted to provide to an inmate of the MDC the following prohibited devices: five Universal Serial Bus (USB) charging cubes and nine USB charging cables, which are utilized by users of commercial mobile phone services. The Cell Phone Contraband Act of 2010 prohibits the possession of cell phones in federal prisons by unauthorized persons, including inmates.
The government’s case is being handled by the Office’s Public Integrity Section. Assistant United States Attorney Sara K. Winik is in charge of the prosecution.
The Defendant:
Fabienne Osias
Age: 40
Brooklyn, New YorkE.D.N.Y. Docket No. 24-CR-321 (MMH)
Member of "Black Rain" Drug Crew Pleads Guilty, Admits to his Involvement in Three Queens Cold Case MurdersRead the Press Release
Earlier today, Jerome Jones, also known as “Sha,” pleaded guilty at the federal courthouse in Brooklyn, New York, to murder while engaged in narcotics trafficking for his participation in the 1991 murder of Oscar Flow. As part of his plea, Jones, 60, also admitted to his role in the 1992 murders of Robert Arroyo and Dorothy Taylor. Today’s proceedings took place before United States District Judge Nicholas G. Garaufis. When sentenced, Jones faces 20 years to life in prison. He was indicted in February 2019.
Breon Peace, United States Attorney for the Eastern District of New York, Christie M. Curtis, Acting Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Edward A. Caban, Commissioner, New York City Police Department (NYPD), announced the guilty plea.
“After over 30 years, Jones has finally admitted his role in the calculated murders of three individuals,” stated United States Attorney Peace. “Despite the passage of time, my Office persisted in pursuing all leads to seek justice for the victims and their families. This case should stand as a reminder that even when the trail appears to have gone cold, we will never waver from our mission of holding wrongdoers, especially violent actors, accountable.”
“Today’s admission of guilt reflects the tireless dedication of NYPD detectives to hold criminals accountable, no matter how much time passes, because a cold case is never a forgotten case,” stated NYPD Commissioner Caban. “The NYPD will continue to work with the FBI, the office of the U.S. Attorney for the Eastern District of New York, and our other law enforcement partners to ensure that no investigative stone goes unturned as we work to establish justice for all crime victims and their families.”
Jones was a high-ranking member of a Queens-based crew, known as “Black Rain,” that sold narcotics at several locations on Rockaway Boulevard in the late 1980s and early 1990s. The crew spread its poison in the community by trafficking in massive quantities of drugs, selling heroin under the brand name “Black Rain,” cocaine under the brand name “White Lightning” and crack cocaine under the brand name “Thunder.” In the early 1990s, a single Black Rain drug spot brought in approximately $15,000 per day in narcotics sales. To protect its profitable operation, the gang committed serious acts of violence, including murder.
The murder of Oscar Flow took place in Springfield Gardens, Queens, in December 1991, after Jones learned that Flow had stolen from Black Rain. Jones and a co-conspirator shot Flow multiple times in the head and body.
The murder of Robert Arroyo took place in the vicinity of 128th Street and Rockaway Boulevard in South Ozone Park, where Jones managed a drug spot. In August 1992, Jones recruited and paid two co-conspirators to murder Robert Arroyo, whom Jones believed was a drug-trafficking competitor and a police informant. In their first attempt, the recruits mistakenly shot and seriously injured another man they incorrectly believed to be Arroyo. The victim survived his wounds. On September 8, 1992, at Jones’s direction, the recruits located Arroyo on a crowded street and shot him multiple times, killing him.
In November of 1992, Jones ordered the killing of Dorothy Taylor, who he blamed for having a Black Rain drug spot shut down by law enforcement when she failed to pay the rent. Jones again paid a co-conspirator to commit murder. On November 2, 1992, Jones’s recruit hid in Taylor’s driveway and shot her to death when she arrived home.
The government’s case is being handled by the Office’s Organized Crime and Gangs Section. Assistant United States Attorneys Tanya Hajjar, Emily J. Dean, Lindsey R. Oken and Raffaela S. Belizaire are in charge of the prosecution with the assistance of Paralegal Specialist Theodore Rader.
The Defendant:
JEROME JONES (also known as “Sha”)
Age: 60
West VirginiaE.D.N.Y. Docket No. 19-CR-54 (NGG)
Ex-Energy Trader for Vitol Pleads Guilty to Second International Bribery SchemeRead the Press Release
Will Forfeit More than $7.1 Million in Funds Involved in Laundering Bribes to Mexican and Ecuadorian Officials; Defendants Ordered to Pay Over $200 Million in Forfeiture and Criminal Penalties
Earlier today, in federal court in Brooklyn, Javier Aguilar pleaded guilty to conspiring to violate the Foreign Corrupt Practices Act (FCPA) and engaging in interstate and foreign commerce to promote and to distribute the proceeds of commercial bribery for paying bribes to officials at PEMEX Procurement International (PPI), a wholly owned affiliate of the Mexican state-owned oil company, PEMEX. The plea follows Aguilar’s conviction at trial earlier this year in a related case for paying bribes to Ecuadorian officials and laundering the bribe money for both the Ecuador and Mexico bribery schemes. The plea proceeding was held before United States District Judge Eric N. Vitaliano. When sentenced in both cases, Aguilar faces a maximum sentence of 40 years’ imprisonment as well as $7,129,938 in criminal forfeiture.
Breon Peace, United States Attorney for the Eastern District of New York (EDNY), Nicole M. Argentieri, Principal Deputy Assistant Attorney General and head of the Justice Department’s Criminal Division, and Jeffrey B. Veltri, Special Agent in Charge, Federal Bureau of Investigation, Miami Field Office (FBI), announced the guilty plea.
“With today’s guilty plea the defendant admits his role in the widespread corruption of the international commodities market and to casting aside laws and rules that apply to all to unfairly line the pockets of the few,” stated United States Attorney Peace. “The actions of the defendant and his co-conspirators, and of those who act similarly, destroys people’s faith in their governments, disadvantages those who play by the rules, undermines confidence in American businesses worldwide, and will not be tolerated by this Office or our law enforcement partners.”
Mr. Peace expressed his appreciation to the United States Attorney’s Office for the Southern District of Texas for their assistance on the case.
“The Foreign Corrupt Practices Act has been the law of the land, and enforceable worldwide, for decades. Yet unscrupulous businessmen still try to bribe their way to profit,” said Jeffrey B. Veltri, Special Agent in Charge for the FBI’s Miami Field Office. “My message to them is that the charges and penalties you will face are not worth the gain. I want to commend the U.S Attorney’s Office for the Eastern District of New York, the U.S. Attorney’s Office for the Southern District of Texas, and the Department of Justice’s Office of International Affairs for their diligence pursuing this case, but especially the agents and analysts who leave no stone unturned in pursuit of FCPA violators.”
Between 2015 and 2020, Aguilar was a trader in the Houston office of Vitol, Inc. (Vitol), the U.S. affiliate of the Vitol group of companies, which together form one of the world’s largest energy trading firms. As part of the scheme, Aguilar and his co-conspirators paid approximately $600,000 in bribes to two senior officials at PPI to obtain numerous contracts for Vitol to supply hundreds of millions of dollars of liquid ethane to PEMEX. To conceal the scheme, Aguilar and his co-conspirators used a series of fake contracts, sham invoices and shell entities incorporated in Curaçao and Mexico. The defendant and his co-conspirators also used alias email accounts to communicate about the scheme, and code words, including “shoes,” “medicine,” “invitations” and “coffee,” to describe the bribes.
In December 2020, Vitol admitted to bribing officials in Ecuador, Mexico, and Brazil in violation of the anti-bribery provisions of the FCPA. Vitol entered into a deferred prosecution agreement with the Criminal Division’s Fraud Section and the U.S. Attorney’s Office of the Eastern District of New York. As a part of the resolution, Vitol agreed to pay a combined $135 million in penalties as part of a coordinated resolution with the Department of Justice, the Commodity Futures Trading Commission (CFTC) and authorities in Brazil.
The FCPA conspiracy charge, based in the Southern District of Texas (SDTX), was initially filed in the EDNY in December 2022 as part of a superseding indictment consolidating both the Ecuador- and Mexico-related conduct. In May 2023, the government consented to Aguilar’s pre-trial motion to dismiss that charge in the EDNY on venue grounds. That charge and others related were then refiled in SDTX in August 2023. As part of his guilty plea, Aguilar consented to transfer the SDTX case back to the EDNY, reconsolidating the cases.
Seven of the defendant’s co-conspirators have pleaded guilty in connection with their roles in the scheme and are awaiting sentencing. Together, these individuals have agreed to forfeit more than $63 million.
In July 2022, Mr. Peace was selected as the Chairperson of the White Collar Fraud subcommittee for the Attorney General’s Advisory Committee (AGAC). As the leader of the subcommittee, Mr. Peace plays a key role in making recommendations to the AGAC to facilitate the prevention, investigation and prosecution of various financially motivated, non-violent crimes including bribery and corruption offenses.
The government’s case is being handled by the Business and Securities Fraud Section of the United States Attorney’s Office for the Eastern District of New York and the Criminal Division’s Fraud Section and Money Laundering and Asset Recovery Section (MLARS). Assistant United States Attorneys Jonathan P. Lax and Matthew R. Galeotti of the Eastern District of New York are prosecuting the case with Assistant Chiefs Derek J. Ettinger and Jonathan P. Robell and Trial Attorney Clayton P. Solomon of the Fraud Section, Deputy Chief Adam J. Schwartz and Trial Attorney D. Hunter Smith of MLARS, with assistance from Deputy Chief Suzanne Elmilady and Assistant U.S. Attorney Sherin Daniel of the United States Attorney’s Office for the Southern District of Texas. Assistant United States Attorney Brian Morris assisted with forfeiture matters. The MLARS Special Financial Investigations Unit and the Justice Department’s Office of International Affairs also provided substantial assistance in this case.
The Defendant:
JAVIER AGUILAR
Age: 50
Houston, TexasE.D.N.Y. Docket Nos. 24-CR-304 (ENV) / 20-CR-390 (ENV)
United States Announces Settlement Resolving Clean Air Act Violations at Medford, Long Island Metal Shredding FacilityRead the Press Release
Breon Peace, United States Attorney for the Eastern District of New York, and Lisa F. Garcia, Regional Administrator, Environmental Protection Agency (EPA), today announced a settlement with Gershow Recycling Corporation (Gershow) for its alleged violation of the Clean Air Act (CAA) at the company’s metal shredding facility in Medford, New York. Under the Consent Judgment, Gershow will install and operate technology to reduce the facility’s emission of volatile organic compounds (VOCs). The settlement also requires Gershow to pay a civil penalty of $555,000.
“This Office will vigorously enforce the Clean Air Act to protect local communities from harmful air pollution,” stated United States Attorney Breon Peace. “This settlement requires Gershow to implement critical emission control technology that will help improve air quality for local communities, including those with the most vulnerable residents.”
“Thanks to EPA’s action, people in and around Medford will breathe cleaner air and avoid harmful pollution,” said Regional Administrator Lisa F. Garcia. “Breathing air with higher levels of VOCs can cause breathing problems and make people more susceptible to respiratory infection, especially for people who suffer from asthma. This proposed settlement ensures that the company installs proper pollution controls at the facility and meets environmental requirements.”
Background
The CAA was enacted by Congress to promote the public health and welfare through prevention and regulation of air pollution from mobile and stationary sources. The CAA requires states to adopt federally enforceable plans to ensure the implementation and enforcement of National Ambient Air Quality Standards (NAAQS) at the local level. VOC emissions contribute to the formation of ground level ozone and to violations of the NAAQS for ozone. Exposure to VOCs may cause cancer, eye irritation, respiratory problems, and damage to the nervous system. Ground-level ozone, which is a constituent of smog, can also cause determinantal health effects. Under the NAAQS, EPA has designated the New York Metropolitan Area, including Long Island, as a non-attainment area for ozone. This designates the area as having poor ground level ozone.
Consent Judgment
In November 2021, EPA issued Gershow a Notice of Violation citing it for violating the CAA. The notice, and the Complaint filed today with the Consent Judgment, allege that Gershow failed to install pollution controls at its metal shredder, causing illicit emissions of VOCs. Further, Gershow failed to obtain a CAA air permit for the facility’s VOC emissions and failed to properly report the facility’s air emissions.
Gershow’s facility operates metal shredding equipment, which is used to process scrap automobiles and other scrap material. The shredding process generates enough heat to vaporize the plastics, paints, and oils in certain scrap materials, resulting in the emission of VOCs and other air pollutants. Without an emission control system, pollutants disperse into the air and impact the surrounding communities.
Under the Consent Judgment, Gershow is required to bring its facility into compliance with the CAA. Gershow must obtain the required operating permit, and then install and operate emission control equipment to reduce VOCs emitted by the shredder. EPA estimates that the new equipment that Gershow will install will prevent over 49 tons per year of VOC air emissions. The required pollution control equipment will also reduce the formation of harmful ground-level ozone.
The Complaint and Consent Judgment were filed in the United States District Court for the Eastern District of New York. Following a 30-day public comment period, the United States will review any comments and, if appropriate, ask the Court to enter the Consent Judgment.
The United States Attorney’s Office for the Eastern District of New York vigorously enforces the nation’s environmental laws to address environmental, health, and climate impacts on individuals and communities within the district. Any member of the public who wishes to notify the United States of environmental justice concerns may contact the Office’s Environmental Justice Team here.
The negotiations and settlement were handled by Assistant U.S. Attorneys Thomas R. Price and Matthew Silverman of the U.S. Attorney’s Office for the Eastern District of New York’s Civil Division, working with Robert DeLay, Assistant Regional Counsel, U.S. EPA Region 2, with assistance from Shaun Burke, Senior Environmental Engineer, U.S. EPA Air Enforcement Division, Office of Civil Enforcement.
E.D.N.Y. Docket No. 24-CV-5794
Oregon Man Charged in Swatting and Bomb Threats Scheme That Targeted Jewish Hospitals in New York City and Long IslandRead the Press Release
Earlier today, an indictment was unsealed charging Domagoj Patkovic with conspiring to make and making threats concerning explosives, conspiring to transmit and transmitting threatening communications, and conveying false information concerning explosives. Patkovic was arrested this morning at his residence in Portland, Oregon and will make his initial appearance before U.S. Magistrate Judge Youlee Yim Yu in U.S. District Court of Oregon later today.
Breon Peace, United States Attorney for the Eastern District of New York and Christie M. Curtis, Acting Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the charges.
“As alleged, the defendant and his coconspirators, motivated by their hatred of Jewish people, targeted Jewish hospitals and care centers in New York City and on Long Island with hoax bomb threats, needlessly endangering patients and staff by creating chaos and alarm,” stated United States Attorney Peace. “Our highest priority is ensuring all members of our community are protected and we will use all resources possible to prosecute dangerous bomb threats and swatting schemes to the fullest extent of the law.”
Mr. Peace expressed his appreciation to the New York City Police Department, Nassau County Police Department and the U.S. Attorney’s Office for the District of Oregon for their assistance on the case.
“Domagoj Patkovic allegedly issued a series of false bomb threats against Jewish healthcare facilities that prompted repeated emergency responses from local law enforcement and a partial evacuation from at least one hospital. These alleged actions incited unnecessary hysteria and redirected limited resources to mitigate a false alarm. The FBI will not tolerate those who utilize hoax bomb threat schemes to satisfy their anti-Semitic beliefs and endanger the wellbeing of our communities,” stated FBI Acting Assistant Director in Charge Curtis.
As set forth in the indictment and in court filings, beginning at least as early as May 2021, the defendant and others made anonymous phone calls in which they made violent threats, including threats to detonate explosive devices, to Jewish hospitals and care centers within the Eastern District of New York, among other targets throughout the United States.
The defendant himself made threats in at least six separate calls to hospitals and on a call with local law enforcement who had responded to a 911 notification from one of the hospitals. The defendant livestreamed the calls to others on an online social media and electronic communications service. On several occasions, local police responded to the scene and conducted bomb sweeps. On at least one occasion in September 2021, the hoax bomb threat resulted in a partial evacuation and lockdown of an entire hospital on Long Island. No explosive devices were ultimately found in any of the locations.
The charges in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty. If convicted, he faces up to 155 years’ imprisonment.
The government’s case is being handled by the Office’s National Security & Cybercrime Section. Assistant United States Attorneys Alexander A. Solomon, Laura Zuckerwise, and Andrew D. Reich are in charge of the prosecution, with assistance from Trial Attorney James Donnelly of the National Security Division’s Counterterrorism Section and Paralegal Specialist Wayne Colon.
The Defendant:
DOMAGOJ PATKOVIC
Age: 31
Portland, OregonE.D.N.Y. Docket No. 24-CR-317 (RER)
Former Congressman George Santos Pleads Guilty to Wire Fraud and Aggravated Identity TheftRead the Press Release
Earlier today, in federal court in Central Islip, former Congressman George Anthony Devolder Santos pleaded guilty to committing wire fraud and aggravated identity theft. The proceeding was held before United States District Judge Joanna Seybert. When sentenced, Santos faces a minimum sentence of two years’ imprisonment and a maximum sentence of 22 years’ imprisonment. As part of the plea Santos will pay restitution of $373,749.97 and forfeiture of $205,002.97. Santos was initially charged in May 2023, and a superseding indictment charging Santos with additional crimes was returned in October 2023.
Breon Peace, United States Attorney for the Eastern District of New York, Nicole M. Argentieri, Principal Deputy Assistant Attorney General and head of the Justice Department’s Criminal Division, Christie M. Curtis, Acting Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI), Anne T. Donnelly, Nassau County District Attorney, and Thomas M. Fattorusso, Special Agent in Charge, Internal Revenue Service-Criminal Investigation (IRS-CI), announced the guilty plea.
“Today, for what may seem like the first time since he started his campaign for Congress, Mr. Santos told the truth about his criminal schemes. He admitted to lying, stealing and conning people,” stated U.S. Attorney Breon Peace for the Eastern District of New York. “By pleading guilty, Mr. Santos has acknowledged that he repeatedly defrauded federal and state government institutions as well as his own family, supporters and constituents. His flagrant and disgraceful conduct has been exposed and will be punished. Mr. Santos’s conviction demonstrates this Office’s enduring commitment to rooting out corruption and grift by public officials.”
Mr. Peace expressed his appreciation to the U.S. Department of Labor, Office of Inspector General and the New York State Department of Labor, for their work on the case.
“As part of his campaign for election to the U.S. House of Representatives, George Santos committed fraud and identity theft, and lied to the American people about his personal finances and campaign supporters,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “In doing so, Santos violated laws designed to ensure that the public has accurate information about the personal finances of individuals who seek to represent them in Congress and how their political campaigns are funded. The transparency and accuracy that these laws require are essential to the integrity of the election process, and today’s conviction is proof that the Criminal Division is committed to enforcing them.”
“Today, George Santos admitted that he did in fact lie, cheat, and steal his way to elected office. When public officials place their self-interests above those they swore an oath to serve, it undermines confidence in our system of government and damages the very foundation of our democracy. The FBI is committed to investigating and eradicating public corruption—no matter the form it takes,” stated FBI Acting Assistant Director in Charge Curtis.
“George Santos lied to his constituents, cheated his supporters and quite simply made a mockery of his position in public office. Today’s guilty plea is a step towards getting justice for those he has wronged. CI New York worked closely with the Eastern District of New York, the FBI and Nassau County DA’s office to ensure that Santos faces the consequences for his years of fraud and deceit, because corruption is not to be tolerated,” stated IRS CI Special Agent in Charge Fattorusso.
“George Santos built a career on deception and funded his lifestyle using the identities of people he misled, including Nassau County residents who believed they were contributing to Santos’ campaign and participating in the electoral process. The defendant rode a wave of his lies all the way to Congress and endlessly abused the trust of his constituents,” stated Nassau County District Attorney Donnelly. “We will continue to work together with our federal partners at the U.S. Attorney’s Office, the Department of Justice, and the Federal Bureau of Investigation to root out corruption on Long Island and hold public officials to the highest standards of integrity.”
The counts to which Santos pled guilty relate to the following criminal scheme, as set forth in the superseding indictment:
The Party Program Scheme
During the 2022 election cycle, Santos was a candidate for the United States House of Representatives in New York’s Third Congressional District. Nancy Marks, who pleaded guilty on October 5, 2023 to related conduct, was the treasurer for his principal congressional campaign committee, Devolder-Santos for Congress. During this election cycle, Santos and Marks devised and executed a fraudulent scheme to obtain money for the campaign by submitting materially false reports to the Federal Election Commission (FEC) on behalf of the campaign, in which they inflated the campaign’s fundraising numbers for the purpose of misleading the FEC, a national party committee, and the public.
Specifically, the purpose of the scheme was to ensure that Santos and his campaign qualified for a program administered by the national party committee, pursuant to which the national party committee would provide financial and logistical support to Santos’s campaign. To qualify for the program, Santos had to demonstrate, among other things, that his congressional campaign had raised at least $250,000 from third-party contributors in a single quarter.
To create the public appearance that his campaign had met that financial benchmark and was otherwise financially viable, Santos and Marks agreed to falsely report to the FEC that at least 11 of their family members had made significant financial contributions to the campaign. In fact, Santos and Marks both knew that these individuals had neither made the reported contributions nor given authorization for their personal information to be included in such false public reports. In addition, Santos and Marks knew that the national party committee relied on FEC fundraising data to evaluate candidates’ qualification for the program, and agreed to falsely report to the FEC that Santos had loaned the campaign significant sums of money, when, in fact, Santos had not made the reported loans and, at the time the loans were reported, did not have the funds necessary to make such loans. These falsely reported loans included a $500,000 loan, when in fact Santos had less than $8,000 in his personal and business bank accounts.
Through the execution of this scheme, Santos and Marks ensured that Santos met the necessary financial benchmarks to qualify for the program administered by the national party committee. As a result of qualifying for the program, the congressional campaign received significant financial support.
As part of his plea agreement, Santos stipulated that he had engaged in the following additional criminal conduct, as set forth in the superseding indictment and other court filings, and agreed that this criminal conduct will be considered by the Court at the time of sentencing:
The Credit Card Fraud Scheme
Between approximately July 2020 and October 2022, Santos devised and executed a fraudulent scheme to steal the personal identity and financial information of contributors to his campaign. He then charged contributors’ credit cards repeatedly, without their authorization. Because of these unauthorized transactions, funds were transferred to Santos’s campaign, to the campaigns of other candidates for elected office, and to his own bank account. To conceal the true source of these funds and to circumvent campaign contribution limits, Santos falsely represented that some of the campaign contributions were made by other persons, such as his relatives or associates, rather than the true cardholders, in filings with the FEC. Santos did not have authorization to use their names in this way.
Fraudulent Political Contribution Solicitation Scheme
Beginning in September 2022, during his successful campaign for Congress, Santos operated a limited liability company (Company #1) through which he defrauded prospective political supporters. Santos enlisted a Queens-based political consultant (Person #1) to communicate with prospective donors on Santos’s behalf. Santos directed Person #1 to falsely tell donors that, among other things, their money would be used to help elect Santos to the House, including by purchasing television advertisements. In reliance on these false statements, two donors (Contributor #1 and Contributor #2) each transferred $25,000 to Company #1’s bank account, which Santos controlled.
Shortly after the funds were received into Company #1’s bank account, the money was transferred into Santos’s personal bank accounts—in one instance laundered through two of Santos’s personal accounts. Santos then used much of that money for personal expenses. Among other things, Santos used the funds to make personal purchases, including of designer clothing, to withdraw cash, to discharge personal debts, and to transfer money to his associates.
Unemployment Insurance Fraud Scheme
Beginning in approximately February 2020, Santos was employed as a Regional Director of a Florida-based investment firm (Investment Firm #1). By late March 2020, in response to the outbreak of COVID-19 in the United States, new legislation was signed into law that provided additional federal funding to assist out-of-work Americans during the pandemic.
In mid-June 2020, although he was employed and not eligible for unemployment benefits, Santos applied for government assistance through the New York State Department of Labor (NYS DOL), claiming falsely to have been unemployed since March 2020. From that point until April 2021—during which time Santos was working and receiving a salary on a near-continuous basis, and throughout his first unsuccessful run for Congress—he falsely affirmed each week that he was eligible for unemployment benefits when he was not. As a result, Santos fraudulently received more than $24,000 in unemployment insurance benefits.
False Statements to the House of Representatives
Santos, like all candidates for the House, had a legal duty to file with the Clerk of the United States House of Representatives a Financial Disclosure Statement (House Disclosures) before each election. In his House Disclosures, Santos was personally required to give a full and complete accounting of his assets, income, and liabilities, among other things. He certified that his House Disclosures were true, complete, and correct.
In September 2022, in connection with his second campaign for election to the House, Santos filed a House Disclosure in which he vastly overstated his income and assets. In this House Disclosure, he falsely certified that during the reporting period:
- He had earned $750,000 in salary from the Devolder Organization LLC, a Florida‑based entity of which Santos was the sole beneficial owner;
- He had received between $1,000,001 and $5,000,000 in dividends from the Devolder Organization LLC;
- He had a checking account with deposits of between $100,001 and $250,000; and
- He had a savings account with deposits of between $1,000,001 and $5,000,000.
These assertions were false: Santos had not received from the Devolder Organization LLC the reported amounts of salary or dividends and did not maintain checking or savings accounts with deposits in the reported amounts. Further, Santos failed to disclose that, in 2021, he received approximately $28,000 in income from Investment Firm #1 and more than $20,000 in unemployment insurance benefits from the NYS DOL.
* * * * *
In July 2022, Mr. Peace was selected as the Chairperson of the White Collar Fraud subcommittee for the Attorney General’s Advisory Committee (AGAC). As the leader of the subcommittee, Mr. Peace plays a key role in making recommendations to the AGAC to facilitate the prevention, investigation and prosecution of various financially motivated, non-violent crimes including wire fraud, money laundering, and aggravated identity theft.
The government’s case is being handled by the Office’s Public Integrity Section and Criminal Section of the Office’s Long Island Division, along with the Public Integrity Section of the Department of Justice’s Criminal Division (PIN). Assistant United States Attorneys Ryan Harris, Anthony Bagnuola, and Laura Zuckerwise, along with Trial Attorneys Jacob Steiner and John Taddei, are in charge of the prosecution, with assistance from Paralegal Specialists Rachel Friedman and Dinora Orozco. Senior Litigation Counsel Victor R. Salgado and former Trial Attorney Jolee Porter of PIN also provided substantial contributions to the prosecution.
The Defendant:
GEORGE ANTHONY DEVOLDER SANTOS
Age: 36
Queens, New YorkE.D.N.Y. Docket No. 23-CR-197 (S-2) (JS)
Former Congressman George Santos Pleads Guilty to Fraud and Identity TheftRead the Press Release
Former U.S. Representative George Anthony Devolder Santos pleaded guilty today to committing wire fraud and aggravated identity theft.
In pleading guilty, Santos, 36, of Queens, New York, admitted he filed fraudulent FEC reports, embezzled funds from campaign donors, charged credit cards without authorization, stole identities, obtained unemployment benefits through fraud, and lied in reports to the House of Representatives.
“As part of his campaign for election to the U.S. House of Representatives, George Santos committed fraud and identity theft, and lied to the American people about his personal finances and campaign supporters,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “In doing so, Santos violated laws designed to ensure that the public has accurate information about the personal finances of individuals who seek to represent them in Congress and how their political campaigns are funded. The transparency and accuracy that these laws require are essential to the integrity of the election process, and today’s conviction is proof that the Criminal Division is committed to enforcing them.”
“Today, for what may seem like the first time since he started his campaign for Congress, Mr. Santos told the truth about his criminal schemes. He admitted to lying, stealing and conning people,” said U.S. Attorney Breon Peace for the Eastern District of New York. “By pleading guilty, Mr. Santos has acknowledged that he repeatedly defrauded federal and state government institutions as well as his own family, supporters and constituents. His flagrant and disgraceful conduct has been exposed and will be punished. Mr. Santos’s conviction demonstrates this Office’s enduring commitment to rooting out corruption and grift by public officials.”
“Today, George Santos admitted that he did in fact lie, cheat, and steal his way to elected office,” said Acting Assistant Director in Charge Christie M. Curtis of the FBI's New York Field Office. “When public officials place their self-interests above those they swore an oath to serve, it undermines confidence in our system of government and damages the very foundation of our democracy. The FBI is committed to investigating and eradicating public corruption—no matter the form it takes.”
“George Santos lied to his constituents, cheated his supporters and quite simply made a mockery of his position in public office,” said Agent in Charge Thomas M. Fattorusso of IRS-Criminal Investigations New York. “Today’s guilty plea is a step towards getting justice for those he has wronged. IRS-CI New York worked closely with the Eastern District of New York, the FBI and Nassau County DA’s office to ensure that Santos faces the consequences for his years of fraud and deceit, because corruption is not to be tolerated.”
The Party Program Scheme
During the 2022 election cycle, Santos was a candidate for the U.S. House of Representatives in New York’s Third Congressional District. Nancy Marks, who pleaded guilty in October 2023 to related conduct, was the treasurer for his campaign committee, Devolder-Santos for Congress. During the election cycle, Santos and Marks devised and executed a fraudulent scheme to obtain money for the campaign by submitting materially false reports to the Federal Election Commission (FEC) on behalf of the campaign, in which they inflated the campaign’s fundraising numbers for the purpose of misleading the FEC, a national party committee, and the public.
Specifically, the purpose of the scheme was to ensure that Santos and his campaign qualified for a program administered by the national party committee, pursuant to which the national party committee would provide financial and logistical support to Santos’s campaign. To qualify for the program, Santos had to demonstrate that his congressional campaign had raised at least $250,000 from third-party contributors in a single quarter.
To create the public appearance that his campaign had met that financial benchmark and was otherwise financially viable, Santos and Marks agreed to falsely report to the FEC that at least 10 family members of Santos and Marks had made significant financial contributions to the campaign. In fact, Santos and Marks both knew that these individuals had neither made the reported contributions nor given authorization for their personal information to be included in such false public reports. In addition, understanding that the national party committee relied on FEC fundraising data to evaluate candidates’ qualification for the program, Santos and Marks agreed to falsely report to the FEC that Santos had loaned the campaign significant sums of money, when, in fact, Santos had not made the reported loans and, at the time the loans were reported, did not have the funds necessary to make such loans. These false reported loans included a $500,000 loan, when in fact Santos had less than $8,000 in his personal and business bank accounts.
Through the execution of this scheme, Santos and Marks ensured that Santos met the necessary financial benchmarks to qualify for the program administered by the national party committee. As a result of qualifying for the program, the congressional campaign received significant financial support.
As part of his plea agreement, Santos stipulated that he had engaged in the below additional criminal conduct, as set forth in the second superseding indictment and other court filings, and agreed that this criminal conduct will be considered by the Court at the time of sentencing.
The Credit Card Fraud Scheme
Between approximately July 2020 and October 2022, Santos devised and executed a fraudulent scheme to steal the personal identity and financial information of contributors to his campaign. He then charged contributors’ credit cards repeatedly, without their authorization. Because of these unauthorized transactions, funds were transferred to Santos’s campaign, to the campaigns of other candidates for elected office, and to his own bank account. To conceal the true source of these funds and to circumvent campaign contribution limits, Santos falsely represented in filings with the FEC that some of the campaign contributions were made by other persons, such as his relatives or associates, rather than the true cardholders. Santos did not have authorization to use their names in this way.
Fraudulent Political Contribution Solicitation Scheme
Beginning in September 2022, during his successful campaign for Congress, Santos operated a limited liability company (Company #1) through which he defrauded prospective political supporters. Santos enlisted a Queens-based political consultant (Person #1) to communicate with prospective donors on Santos’s behalf. Santos directed Person #1 to falsely tell donors that, among other things, their money would be used to help elect Santos to the House, including by purchasing television advertisements. In reliance on these false statements, two supporters (Contributor #1 and Contributor #2) each transferred $25,000 to Company #1’s bank account, which Santos controlled.
Shortly after the funds were received into Company #1’s bank account, the money was transferred into Santos’s personal bank accounts—in one instance laundered through two of Santos’s personal accounts. Santos then used much of that money for personal expenses. Among other things, Santos used the funds to make personal purchases (including of designer clothing), to withdraw cash, to discharge personal debts, and to transfer money to his associates.
Unemployment Insurance Fraud Scheme
Beginning in approximately February 2020, Santos was employed as a Regional Director of a Florida-based investment firm (Investment Firm #1). By late-March 2020, in response to the outbreak of COVID-19 in the United States, new legislation was signed into law that provided additional federal funding to assist out-of-work Americans during the pandemic.
In mid-June 2020, although he was employed and was not eligible for unemployment benefits, Santos applied for government assistance through the New York State Department of Labor (NYS DOL), falsely claiming to have been unemployed since March 2020. From that point until April 2021—during which time Santos was working and receiving a salary on a near-continuous basis, and throughout his first unsuccessful run for Congress—he falsely affirmed each week that he was eligible for unemployment benefits when he was not. As a result, Santos fraudulently received more than $24,000 in unemployment insurance benefits.
False Statements to the House of Representatives
Santos, like all candidates for the House, had a legal duty to file with the Clerk of the U.S. House of Representatives a Financial Disclosure Statement (House Disclosures) before each election. In his House Disclosures, Santos was personally required to give a full and complete accounting of his assets, income, and liabilities, among other things. He certified that his House Disclosures were true, complete, and correct.
In September 2022, in connection with his second campaign for election to the House, Santos filed a House Disclosure, in which he vastly overstated his income and assets. In this House Disclosure, he falsely certified that during the reporting period:
- He had earned $750,000 in salary from the Devolder Organization LLC, a Florida‑based entity of which Santos was the sole beneficial owner;
- He had received between $1,000,001 and $5,000,000 in dividends from the Devolder Organization LLC;
- He had a checking account with deposits of between $100,001 and $250,000; and
- He had a savings account with deposits of between $1,000,001 and $5,000,000.
These assertions were false. Santos had not received from the Devolder Organization LLC the reported amounts of salary or dividends and did not maintain checking or savings accounts with deposits in the reported amounts. Further, Santos failed to disclose that, in 2021, he received approximately $28,000 in income from Investment Firm #1 and more than $20,000 in unemployment insurance benefits from the New York State Department of Labor.
Santos is scheduled to be sentenced on February 7, 2025, and faces a mandatory minimum of two years in prison and a maximum of 22 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
As part of the guilty plea, Santos will pay restitution of $373, 749.97 and forfeiture of $205, 002.97.
Trial Attorneys Jacob Steiner and John Taddei of the Criminal Division’s Public Integrity Section, and Assistant U.S. Attorneys Ryan Harris, Anthony Bagnuola, and Laura Zuckerwise for the Eastern District of New York are prosecuting the case. Former Trial Attorney Jolee Porter and Litigation Counsel Victor R. Salgado provided substantial contributions to the prosecution.
Brooklyn Man Charged with Sex Trafficking and Interstate Prostitution of Multiple Victims at the "Penn Track" in East New YorkRead the Press Release
Earlier today, an indictment was unsealed in federal court in Brooklyn, charging Ferron Facey, also known as “Azul,” “Blue,” “Royal” and “Royal Da P,” with two counts of sex trafficking and one count of interstate prostitution for bringing young women from out of state to the Eastern District of New York to prostitute under threat of force, fraud and coercion. Facey was arrested earlier today in Brooklyn and made his initial appearance this afternoon before United States Magistrate Judge Peggy Kuo where he was ordered detained.
Breon Peace, United States Attorney for the Eastern District of New York and Christie M. Curtis, Acting Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the arrest and charges.
“As alleged, the defendant trafficked women from out of state, including a minor, to serve as commercial sex workers for him at the notorious Penn Track in East New York, Brooklyn,” stated United States Attorney Peace. “My Office is working diligently with our local and federal law enforcement partners to shut down this blight on our district where vulnerable victims are callously exploited by people like the defendant and the customers who patronize this location.”
“Ferron Facey allegedly coerced two young women, including a minor, to travel to New York where he subsequently trafficked them for sex under threats of violence. The defendant’s violent history and alleged actions not only pose a grave danger to the community, but also to potential victims out of state, as his depravity knows no bounds. With the assistance from our law enforcement partners, the FBI is determined to dismantle sex trafficking operations in our city and apprehend the criminals who exploit their victims for profits,” stated FBI Acting Assistant Director in Charge Curtis.
According to court filings, Facey allegedly recruited young women – including at least one 16-year-old minor – in another state and brought them to New York to work for him in prostitution at an open-air sex market in East New York, Brooklyn, known as the “Penn Track” or “blade.” Facey used violence, coercion and threats of force to exert control over these victims and to keep them working in prostitution for him. Facey has a history of threatening violence against women on the Penn Track. For example, in a video posted on social media in July 2023, he was captured verbally assaulting a woman on the Penn Track and saying, “I got hoes out here that’ll beat you up right now . . . I put hands on bitches[.]” Shortly afterward, two individuals emerged from the defendant’s car and physically attacked the woman.
During his arrest and execution of a search warrant discovered an unloaded 9-millimeter handgun in the bedroom, an unloaded magazine kicked under the kitchen cabinets, multiple rounds of live 9-millimeter ammunition hidden in an air fryer in the kitchen, and a brown, powdery substance consistent with cocaine spilled onto the floor of the bathroom, the toilet seat, and in the toilet. Near the apparent contraband narcotics were approximately 200 glassines, or wax paper bags used in drug sales to package narcotics for individual sale. Nearly $3,000 in $100, $50 and 20$ bills was found in an elastic behind the bed in the bedroom.
If convicted of sex trafficking by force, fraud and coercion, the defendant faces a mandatory minimum sentence of 15 years’ imprisonment. The interstate prostitution charge carries a maximum sentence of 20 years in prison.
The charges in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty.
The government’s case is being handled by the Office’s Civil Rights Section. Assistant United States Attorney Margaret Schierberl is in charge of the prosecution.
The Defendant:
FERRON FACEY (also known as “Azul,” “Blue,” “Royal” and “Royal Da P”)
Age: 38
Brooklyn, New YorkE.D.N.Y. Docket No. 24-CR-339 (AMD)
Two New York City Police Department Detectives and Two Others Charged in Paycheck Protection Program Fraud SchemeRead the Press Release
A criminal complaint was unsealed today in federal court in Brooklyn charging John Bolden and Anthony Carreira, who are detectives employed by the New York City Police Department (NYPD), Jacqueline Johnson and Christian McKenzie with conspiracy to commit wire fraud. The defendants were charged with engaging in a scheme to submit fraudulent applications for loans under the United States Small Business Administration’s (the “SBA”) Paycheck Protection Program (PPP), which Congress created as part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act. Bolden, Johnson and McKenzie were arrested today, and their initial appearances are scheduled for this afternoon before United States Magistrate Judge Judge Lois Bloom. Carreira has agreed to surrender at a later date.
Breon Peace, United States Attorney for the Eastern District of New York, and Christie M. Curtis, Acting Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the arrests and charge.
“As alleged, the defendants, including members of law enforcement responsible for upholding the law, defrauded the United States government out of relief funds meant for businesses struggling to survive the pandemic,” stated United States Attorney Peace. “These arrests are a powerful reminder of this Office’s resolve to prosecute anyone who violated the public trust and took advantage of the COVID crisis by stealing from relief programs.”
Mr. Peace expressed his appreciation to the Suffolk County Police Department; the SBA’s Office of the Inspector General; the Board of Governors of the Federal Reserve System, Office of the Inspector General; the U.S. Department of Education, Office of Inspector General; and the NYPD’s Internal Affairs Bureau for their assistance on the case.
"John Bolden, an NYPD detective, and two other defendants allegedly crafted a scheme to submit fraudulent applications to receive PPP loans. For over two years, this conspiracy allowed more than 65 individuals to obtain unlawfully granted funds, exploiting a system designed to protect small businesses during a global pandemic. While the overwhelming majority of law enforcement serves with honor, it remains the FBI’s responsibility to apprehend all individuals who intend to manipulate government aid programs, even those entrusted with maintaining a higher standard of integrity," stated FBI Assistant Director in Charge Curtis.
As set forth in court filings, NYPD Detectives Bolden and Carreira owned partnership interests in a franchise location for a tax preparation business. Between May 2020 and October 2022, Bolden engaged in a scheme to defraud the SBA by working with his clients and co-defendants, including Carreira, Johnson and McKenzie, to fraudulently obtain PPP funds. Bolden sought to obtain, and in many cases did obtain, PPP funds for himself, his co-defendants and more than 65 individuals by helping submit online loan applications that contained materially false and fraudulent information. As part of the scheme, Bolden prepared fictitious Internal Revenue Service (IRS) Form Schedule C documentation, which accompanied the loan applications, containing false information about his, his co-defendants’ and his clients’ places of employment, gross income and net income.
The charge in the complaint is an allegation, and the defendants are presumed innocent unless and until proven guilty. If convicted, the defendants face a maximum sentence of 30 years.
The government’s case is being handled by the Office’s Public Integrity Section. Assistant United States Attorneys Andrew D. Grubin and Eric Silverberg are in charge of the prosecution, with assistance from Paralegal Specialist Rachel Friedman.
The Defendants:
JOHN BOLDEN
Age: 46
Valley Stream, NYANTHONY CARREIRA
Age: 42
Staten Island, NYJACQUELINE JOHNSON
Age: 78
Valley Stream, NYCHRISTIAN MCKENZIE
Age: 46
Wheatley Heights, NYE.D.N.Y. Docket No. 24-MJ-487
Brooklyn Man Sentenced to 87 Months in Prison for Armed Robbery at ChurchRead the Press Release
Earlier today, at the federal courthouse in Brooklyn, Say-Quan Pollack was sentenced by United States District Judge William F. Kuntz II to 87 months in prison for his role in an armed robbery at a church (the Church) in Brooklyn on July 24, 2022. Pollack and his co-conspirators stole more $400,000 in jewelry from the pastor and his wife during a religious service. As part of the sentence, Pollack was ordered to pay $402,639 in restitution to the victims. Pollack pleaded guilty in November 2023 to Hobbs Act robbery.
Breon Peace, United States Attorney for the Eastern District of New York, Tommy Kalogiros, Assistant Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives, New York Division (ATF), and Edward A. Caban, Commissioner, New York City Police Department (NYPD), announced the sentence.
“Pollack has been held accountable for committing a bold robbery in a house of worship with a gun, terrorizing the men, women, and children participating in the religious service that Sunday morning,” stated United States Attorney Peace. “Today’s sentence shows that such despicable and dangerous conduct will be punished with significant time in prison. For those victims who were traumatized by this violent crime carried out in a setting where they had gone to pray and worship, it is my hope that they find some closure in the prosecution of the defendants.”
ATF Assistant Special Agent in Charge Kalogiros stated, “This verdict sends a clear message that violent acts have consequences. Here, the defendant’s brazen armed robbery at a church earned him a lengthy prison sentence. This outcome affirms the unwavering commitment of ATF/NYPD’s Strategic Pattern Armed Robbery Technical Apprehension (SPARTA) Group and the United States Attorney’s Office for the Eastern District of New York to stop those who wreak havoc in our city. This outcome was a product of the strong relationship ATF cultivates with our state and local partners which allow us to keep the community safe by identifying, investigating and apprehending those that commit acts of violence.”
“Today’s sentencing holds Mr. Pollack accountable for his shameless acts and serves as a stark reminder to others who might think of committing similarly egregious crimes,” stated NYPD Commissioner Caban. “With justice served, the NYPD and our partners at the ATF and the office of the U.S. Attorney for the Eastern District of New York will continue doing everything possible to keep the public safe and ensure that there are always consequences for nefarious behavior.”
On the morning of July 24, 2022, Pollack, Juwan Anderson and Shamar Leggette —wearing masks and clad all in black—entered the Church brandishing guns and interrupting the religious service attended by parishioners both in person and via a live-stream. The lead pastor (Individual 1), who had been delivering a sermon from the pulpit, dove to the floor, while his wife (Individual 2) shielded their infant daughter who was sitting on her lap. Pollack initially stood guard at the doorway, pointing a gun in the direction of the parishioners and the pulpit. Leggette, also wielding a gun, approached Individual 2 and pulled jewelry off her person, and Anderson grabbed jewelry from Individual 1 as he lay facedown on the floor. Pollack then approached Individual 1 and, pointing a gun at his head, made sure that all of his jewelry had been removed by his co-conspirators.
Pollack and Anderson were arrested in September 2022. In December 2023, Anderson pleaded guilty to Hobbs Act robbery and is awaiting sentencing. Charges against Leggette were dismissed following his death in January 2024.
The government’s case is being handled by the Office’s Public Integrity Section. Assistant United States Attorney Rebecca M. Schuman is in charge of the prosecution, with assistance from Assistant United States Attorney Miranda Gonzalez.
The Defendant:
SAY-QUAN POLLACK (also known as “Say-Quan Pollock”)
Age: 25
Brooklyn, New YorkCo-Defendant to be Sentenced:
JUWAN ANDERSON
Age: 25
Brooklyn, New YorkE.D.N.Y. Docket No. 22-CR-428 (WFK)
Former Finance Minister of Mozambique Convicted of Fraud and Money Laundering in $2 Billion SchemeRead the Press Release
Manuel Chang, the former Finance Minister of Mozambique, was convicted earlier today by a federal jury of conspiracy to commit wire fraud and conspiracy to commit money laundering in connection with his role in a $2 billion fraud, bribery, and money laundering scheme that victimized investors in the United States and elsewhere. The verdict followed a 4-week trial before United States District Judge Nicholas G. Garaufis. When sentenced, Chang faces up to 20 years in prison. Chang was arrested in December 2018 in South Africa, pursuant to a provisional arrest warrant issued at the request of the United States, and extradited to the Eastern District of New York in July 2023.
Breon Peace, United States Attorney for the Eastern District of New York, Nicole M. Argentieri, Principal Deputy Assistant Attorney General and head of the Justice Department’s Criminal Division, and Christie M. Curtis, Acting Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the verdict.
“Today’s verdict is an inspiring victory for justice and the people of Mozambique who were betrayed by the defendant, a corrupt, high-ranking government official whose greed and self-interest sold out one of the poorest countries in the world,” stated United States Attorney Peace. “Chang now stands convicted of pocketing millions in bribes to approve projects that ultimately failed, laundering the money, and leaving investors and Mozambique stuck with the bill.”
“While serving as Finance Minister of Mozambique, Manuel Chang obtained $7 million in bribe payments in exchange for signing guarantees to secure more than $2 billion in loans,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “Not only did Chang’s abuse of authority betray the trust of the Mozambican people, but his corrupt bargain also caused investors—including U.S. investors—to suffer substantial losses on those loans. Chang’s conviction today demonstrates that the Criminal Division is committed to combatting foreign corruption in violation of U.S. law, no matter where these schemes occur or whom they involve.”
As proven at trial, Chang received $7 million in bribes in exchange for signing guarantees on behalf of the Republic of Mozambique to secure funding for loans for three maritime projects. As part of the scheme, Chang and his co-conspirators falsely stated to banks and investors that the loan proceeds would be used for the projects and that the borrower would not pay bribes to Mozambican government officials. In fact, however, Chang and his co-conspirators facilitated the criminal diversion of more than $200 million of the loan proceeds that were used to pay bribes and kickbacks to Chang and others.
Between approximately 2013 and 2015, in his capacity as Mozambique’s Minister of Finance, Chang, together with his co-conspirators – including executives of Privinvest Group, a United Arab Emirates-based shipbuilding company – ensured that Credit Suisse AG, (through its subsidiary in the United Kingdom, Credit Suisse Securities (Europe) Limited (CSSEL), and another foreign investment bank would arrange for more than $2 billion to be extended to companies owned and controlled by the Mozambican government: Proindicus S.A. (Proindicus), Empresa Moçambicana de Atum, S.A. (EMATUM), and Mozambique Asset Management (MAM). The proceeds of the loans were intended to fund three maritime projects for which Privinvest was to provide the equipment and services. Specifically, Proindicus was to perform coastal surveillance, EMATUM was to engage in tuna fishing, and MAM was to build and maintain shipyards.
Instead, Chang and his co-conspirators illegally facilitated Privinvest’s diversion of more than $200 million of the loan proceeds to bribes and kickbacks. These funds included more than $150 million that Privinvest used to bribe Chang and other Mozambican government officials to ensure that companies owned and controlled by the Mozambican government would enter into the loan arrangements, and that the Mozambique government would guarantee those loans. The loans were subsequently sold in whole or in part to investors worldwide, including in the United States. In doing so, the participants in the scheme conspired to defraud these investors by misrepresenting how the loan proceeds would be used. Ultimately, Proindicus, EMATUM, and MAM each defaulted on their loans and proceeded to miss more than $700 million in loan payments, causing substantial losses to investors.
In October 2021, Credit Suisse AG and CSSEL admitted to defrauding U.S. and international investors in the financing of an $850 million loan for the EMATUM project. CSSEL pleaded guilty to conspiracy to commit wire fraud and Credit Suisse AG entered into a deferred prosecution agreement with the United States Attorney’s Office for the Eastern District of New York, the Criminal Division’s Fraud Section (Fraud Section) and the Criminal Division’s Money Laundering and Asset Recovery Section (MLARS). As a part of the resolution, Credit Suisse AG and CSSEL paid approximately $475 million in penalties, fines, and disgorgement as part of coordinated resolutions with criminal and civil authorities in the United States and the United Kingdom.
The Office’s Business & Securities Fraud Section is handling the case. Assistant U.S. Attorneys Hiral D. Mehta, Genny Ngai and Jonathan Siegel of the Eastern District of New York, and Trial Attorneys Peter Cooch of the Fraud Section and Morgan Cohen of MLARS, are in charge of the prosecution, with the assistance of Paralegal Specialists Timothy Migliaro and Elica Semnani. The Justice Department’s Office of International Affairs provided substantial assistance. The Justice Department also appreciates the assistance of authorities in the United Kingdom, Switzerland, Spain, Portugal and South Africa.
The Defendant:
MANUEL CHANG
Age: 68
MozambiqueE.D.N.Y. Docket No. 18-CR-681 (NGG)
Former Finance Minister of Mozambique Convicted of $2B Fraud and Money Laundering SchemeRead the Press Release
A federal jury in Brooklyn, New York, convicted the former Finance Minister of Mozambique for his role in a $2 billion fraud, bribery, and money laundering scheme that victimized investors in the United States and elsewhere.
According to court documents and evidence presented at trial, Manuel Chang, 68, of Mozambique, received $7 million in bribes in exchange for signing guarantees on behalf of the Republic of Mozambique to secure funding for three loans for maritime projects. As part of the scheme, Chang and his co-conspirators falsely told banks and investors that the loan proceeds would be used for the projects and not to pay bribes to government officials. In fact, however, Chang and his co-conspirators diverted more than $200 million of the loan proceeds that were used, among other things, to pay bribes and kickbacks to Chang and others.
“While serving as Finance Minister of Mozambique, Manuel Chang obtained $7 million in bribe payments in exchange for signing guarantees to secure more than $2 billion in loans,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “Not only did Chang’s abuse of authority betray the trust of the Mozambican people, but his corrupt bargain also caused investors—including U.S. investors—to suffer substantial losses on those loans. Chang’s conviction today demonstrates that the Criminal Division is committed to combatting foreign corruption in violation of U.S. law, no matter where these schemes occur or whom they involve.”
The trial evidence showed that, between approximately 2013 and 2015, Chang, together with his co-conspirators—including executives of Privinvest Group, a United Arab Emirates-based shipbuilding company—ensured that a United Kingdom subsidiary of Credit Suisse AG and another foreign investment bank arranged for more than $2 billion to be extended to companies owned and controlled by the Mozambican government: Proindicus S.A. (Proindicus), Empresa Moçambicana de Atum, S.A. (EMATUM), and Mozambique Asset Management (MAM). The proceeds of the loans were intended to fund three maritime projects for which Privinvest was to provide the equipment and services.
“Today’s verdict is an inspiring victory for justice and the people of Mozambique who were betrayed by the defendant, a corrupt, high-ranking government official whose greed and self-interest sold out one of the poorest countries in the world,” said U.S. Attorney Breon Peace for the Eastern District of New York. “Chang now stands convicted of pocketing millions in bribes to approve projects that ultimately failed, laundering the money, and leaving investors and Mozambique stuck with the bill.”
“The FBI and its partners will not tolerate corrupt officials lining their pockets with kickbacks at the cost of the citizens they are supposed to look out for,” said Executive Assistant Director Michael D. Nordwall of the FBI’s Criminal, Cyber, Response, and Services Branch. “If you illegally divert funds intended for public investment for personal profit, you will end up paying the price as shown by today’s conviction.”
Chang and his co-conspirators illegally facilitated Privinvest’s diversion of more than $200 million of the loan proceeds to bribes and kickbacks. These funds included more than $150 million that Privinvest used to bribe Chang and other Mozambican government officials to ensure that companies owned and controlled by the Mozambican government entered into the loan arrangements, and that the government of Mozambique guaranteed those loans. The loans were subsequently sold in whole or in part to investors worldwide, including in the United States. In so doing, the participants defrauded these investors by misrepresenting how the loan proceeds would be used. Ultimately, Proindicus, EMATUM, and MAM each defaulted on their loans and proceeded to miss more than $700 million in loan payments, causing substantial losses to investors.
The jury convicted Chang of one count of conspiracy to commit wire fraud and one count of conspiracy to commit money laundering. He faces a maximum penalty of 20 years in prison on each count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
In October 2021, Credit Suisse AG and CSSEL (together, Credit Suisse) admitted to defrauding U.S. and international investors in the financing of an $850 million loan for the EMATUM project. CSSEL pleaded guilty to conspiracy to commit wire fraud and Credit Suisse AG entered into a deferred prosecution agreement with the Criminal Division’s Fraud Section and Money Laundering and Asset Recovery Section (MLARS), and the U.S. Attorney’s Office for the Eastern District of New York. As a part of the resolution, Credit Suisse paid approximately $475 million in penalties, fines, and disgorgement as part of coordinated resolutions with criminal and civil authorities in the United States and the United Kingdom.
The FBI New York Field Office investigated the case.
Trial Attorney Peter Cooch of the Criminal Division’s Fraud Section, MLARS Trial Attorney Morgan Cohen, and Assistant U.S. Attorneys Hiral D. Mehta, Genny Ngai, and Jonathan Siegel for the Eastern District of New York are prosecuting the case.
The Justice Department’s Office of International Affairs provided substantial assistance. The Justice Department also appreciates the assistance of South African authorities, particularly those in the South African Department of Justice and Constitutional Development, as well as authorities in the United Kingdom, Switzerland, Spain, and Portugal.
MLARS’ Bank Integrity Unit investigates and prosecutes banks and other financial institutions, including their officers, managers, and employees, whose actions threaten the integrity of the individual institution or the wider financial system.
The Fraud Section is responsible for investigating and prosecuting Foreign Corrupt Practices Act (FCPA) and Foreign Extortion Prevention Act (FEPA) matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
Brooklyn Man Charged with Throwing Explosive Device into Verizon Utility Van in Road Rage AttackRead the Press Release
Earlier today, in federal court in Brooklyn, New York, an indictment was unsealed charging Kevindale Nurse with arson for allegedly throwing an explosive device into a Verizon utility work van during a road rage attack in Crowns Heights, Brooklyn. Nurse was arrested today and will make his initial appearance this afternoon before United States Magistrate Judge Lara K. Eshkenazi.
Breon Peace, United States Attorney for the Eastern District of New York, Bryan Miller, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives, New York Division (ATF), and Edward A. Caban, Commissioner, New York City Police Department (NYPD), announced the arrest and indictment.
“As alleged, Nurse deliberately threw an explosive device into the window of another vehicle on a public road, endangering the lives of the vehicle’s occupants and others in the area,” stated United States Attorney Peace. “Unfortunately, road rage is an all-too common occurrence in our communities. But this dangerous and senseless attack on a busy intersection in the heart of Brooklyn was beyond the pale. We will vigorously prosecute this case.”
“The defendant committed an unconscionable act by using explosives during a road rage incident, disregarding the potentially deadly consequences when he threw an explosive device in a neighboring vehicle. Thanks to strong law enforcement partnerships and the investigative efforts of ATF NY’s Arson & Explosives Task Force comprised of ATF Special Agents, FDNY Fire Marshals and NYPD Detectives, the NYPD 71st Precinct Detective Squad, and the U.S. Attorney’s Office for the Eastern District of New York this defendant will now face the consequences of his horrific actions,” stated ATF Special Agent in Charge Bryan Miller.
“There is no place in civil society for the spreading of fear through intimidation, violence, and destruction,” stated NYPD Commissioner Caban. “I commend the work of our NYPD investigators, along with our law enforcement partners at the ATF and the office of the U.S. Attorney for the Eastern District of New York, for their dedication and collaboration in bringing this accused criminal to justice.”
As described in court filings, on the evening of January 31, 2024, Nurse, who was driving a white minibus, or commuter “dollar van,” also occupied by his four-year-old son, cut off a Verizon utility van. The two Verizon repairmen in the van were working that day on high-speed data lines and fiber optic equipment. Surveillance video captured Nurse driving erratically before stopping the white minibus next to the Verizon van at the intersection of President Street and Brooklyn Avenue in Crown Heights, and opening the door of the minibus. Nurse allegedly threw an explosive device into the driver’s side window of the Verizon van, causing an explosion inside the vehicle. The two Verizon repairmen inside sustained multiple injuries, and their van was extensively damaged by the blast.
The charge in the indictment is an allegation, and the defendant is presumed innocent unless and until proven guilty. If convicted, Nurse faces a mandatory minimum sentence of seven years in prison and a maximum of 40 years in prison.
The government’s case is being handled by the Office’s General Crimes Section. Assistant United States Attorney Megan Larkin is in charge of the prosecution.
The Defendant:
KEVINDALE NURSE
Age: 36
Brooklyn, New YorkE.D.N.Y. Docket No. 24-CR-322 (MKB)
Queens Resident Convicted of Acting as a Covert Chinese AgentRead the Press Release
Shujun Wang, an academic and author who helped start a pro-democracy organization in Queens that opposes the current communist regime in China, was convicted today by a federal jury in Brooklyn on all four counts of an indictment charging him with acting and conspiring to act as an agent of a foreign government without prior notification to the U.S. Attorney General, criminal possession identification and making false statements to law enforcement. The verdict followed a seven-day trial before United States Second Circuit Judge Denny Chin sitting by designation. Wang’s co-defendants in the espionage and transnational repression scheme, Feng He, Jie Ji, Ming Li and Keqing Lu are officials from China’s Ministry of State Security (MSS). They remain at large. When sentenced, Wang faces up to 25 years in prison.
Breon Peace, United States Attorney for the Eastern District of New York, Matthew G. Olsen, Assistant Attorney General of the Justice Department’s National Security Division, and Robert Wells, Executive Assistant Director, Federal Bureau of Investigation, National Security Branch (FBI), announced the verdict.
“The indictment could have been the plot of a spy novel, but the evidence is shockingly real that the defendant was a secret agent for the Chinese government,” stated United States Attorney Peace. “Posing as a well-known academic and founder of a pro-democracy organization, Wang was willing to betray those who respected and trusted him. When confronted with his shameful conduct, the defendant lied to law enforcement, but today’s verdict revealed the truth of his crimes and now he will face the consequences.”
“This defendant infiltrated a New York-based advocacy group by masquerading as a pro-democracy activist all while covertly collecting and reporting sensitive information about its members to the PRC’s intelligence service,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “Today’s verdict demonstrates that those who would seek to advance the Chinese government’s agenda of transnational repression will be held accountable.”
“This conviction underscores the FBI’s commitment to countering espionage schemes by holding those accountable who collect US activist information for the benefit of China,” said Executive Assistant Director Robert Wells of the FBI’s National Security Branch. “Any support for transnational repression is unacceptable, and the FBI works diligently with its partners to seek out and bring to justice those who support such activities.”
Wang is a naturalized U.S. citizen of Chinese descent and one of the founders of the pro-democracy Hu Yaobang and Zhao Ziyang Memorial Foundation, an organization located in Flushing, Queens whose members are well-known pro-democracy dissidents who oppose the current government of the PRC. But instead of promoting democracy in the PRC, Wang, at the direction of PRC government officials, used his position within the Memorial Foundation and his status within the Chinese diaspora community to collect information about prominent activists, academics, and dissidents, and reported that information to the PRC government.
As proven at trial, since at least 2006, Wang operated under the direction and control of his co-defendants, four officials of China’s MSS, which is responsible for the PRC’s foreign intelligence collection. At the MSS’s direction, Wang gathered information on people and groups that the PRC considers subversive, such as Hong Kong democracy protestors, advocates for Taiwanese independence and Uyghur and Tibetan activists, both in the United States and abroad. Wang conducted face-to-face meetings with MSS officials while on trips to the PRC, and used WeChat to receive orders from his co-defendants and to send and receive written messages and files.
Wang often memorialized the information he collected in email “diaries” to be accessed by the MSS. These “diaries” included details about Wang’s private conversations with prominent dissidents, as well as the activities of pro-democracy activists and human rights organizations. Law enforcement recovered from Wang’s residence diary entries that he wrote to He, Ji, Li, Lu and other MSS officials. Additionally, in connection with his work for the MSS, Wang possessed telephone numbers and contact information belonging to Chinese dissidents.
Wang made materially false statements to federal law enforcement, falsely denying that he had contacts with PRC officials or the MSS. Over the course of three separate interviews, between 2017 and 2021, Wang repeatedly denied or downplayed his contact with individuals from the Chinese intelligence agency. During one of the interviews, in 2019, Wang was interviewed by federal law enforcement agents at John F. Kennedy International Airport in Queens, New York, after he returned from China. Wang falsely stated that he had no contact with anyone from the Chinese government and that he had no Chinese government contact information.
The government’s case is being handled by the Office’s National Security and Cybercrime Section. Assistant United States Attorneys Ellen H. Sise and Nina C. Gupta of the Eastern District of New York and Trial Attorney Garrett Coyle of the National Security Division’s Counterintelligence and Export Control Section are in charge of the prosecution, with assistance from Paralegal Specialists Magdalena St. Surin and Rebecca Roth.
The Defendant:
SHUJUN WANG
Age: 75
Queens, New YorkCo-Defendants At Large:
FENG HE (also known as “Boss He”)
Age: 51
Guangdong, PRCJIE JI
Age: 52
Qingdao, PRCMING LI (also known as “Elder Tang” and “Little Li”)
Age: 42
Guangdong, PRCKEQING LU (also known as “Boss Lu”)
Age: 63
Qingdao, PRCE.D.N.Y. Docket No. 22-CR-230 (DC)
Pakistani National with Ties to Iran Charged in Connection with Foiled Plot to Assassinate a Politician or U.S. Government OfficialsRead the Press Release
Earlier today, in federal court in Brooklyn, a complaint was unsealed charging Asif Merchant, also known as “Asif Raza Merchant,” 46, with murder-for-hire as part of a scheme to assassinate a politician or U.S. government officials on U.S. soil. Law enforcement foiled the charged plot before any attack could be carried out. Merchant is in federal custody in New York.
Merrick B. Garland, Attorney General, Department of Justice, Breon Peace, United States Attorney for the Eastern District of New York, Christopher Wray, Director, Federal Bureau of Investigation (FBI), Matthew G. Olsen, Assistant Attorney General of the Justice Department’s National Security Division, and Christie M. Curtis, Acting Assistant Director in Charge, FBI, New York Field Office, announced the arrest and charges.
“For years, the Justice Department has been working aggressively to counter Iran’s brazen and unrelenting efforts to retaliate against American public officials for the killing of Iranian General Soleimani,” said Attorney General Merrick B. Garland. “The Justice Department will spare no resource to disrupt and hold accountable those who would seek to carry out Iran’s lethal plotting against American citizens, and will not tolerate attempts by an authoritarian regime to target American public officials and endanger America’s national security.”
“Working on behalf of others overseas, Merchant planned the murder of U.S. government officials on American soil,” said U.S. Attorney Breon Peace for the Eastern District of New York. “This prosecution demonstrates that this Office and the entire Department of Justice will take swift and decisive action to protect our nation’s security, our government officials and our citizens from foreign threats.”
Mr. Peace expressed his appreciation to the FBI’s Field Offices in Dallas, Houston, Tampa, Boston, Washington D.C., Chicago and Albany field offices for their partnership on this case. Mr. Peace also expressed his appreciation to the New York City Police Department, the U.S. Attorney’s Office for the Southern District of Texas and the U.S. Customs and Border Protection for their assistance.
“This dangerous murder-for-hire plot exposed in today’s charges allegedly was orchestrated by a Pakistani national with close ties to Iran and is straight out of the Iranian playbook,” said FBI Director Christopher Wray. “A foreign-directed plot to kill a public official, or any U.S. citizen, is a threat to our national security and will be met with the full might and resources of the FBI.”
“The complaint unsealed today underscores, yet again, that those who engage in lethal plotting on U.S. soil will face the full force of the American justice system,” said Assistant Attorney General Matthew G. Olsen of the National Security Division. “The targeting of former and current officials by foreign actors is an affront to our sovereignty and our democratic institutions and the Department of Justice will use every possible tool to expose and disrupt this egregious activity.”
“Fortunately, the assassins Merchant tried to hire were undercover FBI Agents,” said Acting Assistant Director Christie Curtis of the FBI New York Field Office. “This case underscores the dedication and formidable efforts of our agents, analysts and prosecutors in New York, Houston and Dallas. Their success in neutralizing this threat not only prevented a tragic outcome but also reaffirms the FBI’s commitment to protecting our nation and its citizens from both domestic and international threats.”
According to court documents, Merchant orchestrated a plot to assassinate a politician or U.S. government officials on U.S. soil. In approximately April 2024, after spending time in Iran, Merchant arrived in the United States from Pakistan and contacted a person he believed could assist him with the scheme. That person reported Merchant’s conduct to law enforcement and became a confidential source (the CS).
In early June, Merchant met the CS in New York and explained his assassination plot. Merchant told the CS that the opportunity he had for the CS was not a one-time opportunity and would be ongoing. Merchant then made a “finger gun” motion with his hand, indicating that the opportunity was related to a killing. Merchant further stated that the intended victims would be “targeted here,” meaning in the United States. Merchant instructed the CS to arrange meetings with individuals whom Merchant could hire to carry out these actions. Merchant explained that his plot involved multiple criminal schemes: (1) stealing documents or USB drives from a target’s home; (2) planning a protest; and (3) killing a politician or government official.
At that meeting, Merchant began planning potential assassination scenarios and quizzed the CS on how he would kill a target in the various scenarios. Specifically, Merchant asked the CS to explain how the target would die in different scenarios. Merchant told the CS that there would be “security [] all around” the person.
Merchant stated that the assassination would occur after he left the United States and he would communicate with the CS from overseas using code words. The CS asked whether Merchant had spoken to the unidentified “party” back home with whom Merchant was working. Merchant responded that he had and that the party back home told him to “finalize” the plan and leave the United States.
In mid-June, Merchant met with the purported hitmen, who were in fact undercover U.S. law enforcement officers (the UCs) in New York. Merchant advised the UCs that he was looking for three services from them: theft of documents, arranging protests at political rallies, and for them to kill a “political person.” Merchant stated that the hitmen would receive instructions on who to kill either the last week of August or the first week of September, after Merchant had departed the United States.
Merchant then began arranging means to obtain $5,000 in cash to pay the UCs as an advance payment for the assassination, which he eventually received with assistance from an individual overseas. On June 21, Merchant met with the UCs in New York and paid them the $5,000 advance. After Merchant paid the $5,000 to the UCs, one of the UCs stated, “now we’re bonded,” to which Merchant responded “yes.” The UC then stated “Now we know we’re going forward. We’re doing this,” to which Merchant responded “Yes, absolutely.”
Merchant subsequently made flight arrangements and planned to leave the United States on Friday, July 12, 2024. On July 12th, law enforcement agents placed Merchant under arrest before he could leave the country. Merchant has stated that he has a wife and children in Iran and a wife and children in Pakistan.
The charges in the complaint are allegations and Merchant is presumed innocent unless and until proven guilty.
The case is being handled by the Office’s National Security & Cybercrime Section. Assistant United States Attorneys Sara K. Winik and Gilbert Rein and Douglas Pravda are in charge of the prosecution, with assistance from Trial Attorneys David Smith and Joshua Champagne of the Department of Justice’s Counterterrorism Section of the National Security Division.
The Defendant:
ASIF MERCHANT (also known as “Asif Raza Merchant”)
Age: 46
Karachi, Pakistan; Tehran, IranE.D.N.Y. Docket No. 24-MJ-467 (JRC)
Pakistani National with Ties to Iran Charged in Connection with Foiled Plot to Assassinate a Politician or U.S. Government OfficialRead the Press Release
Earlier today, a complaint was unsealed in Brooklyn charging Asif Merchant, also known as Asif Raza Merchant, 46, with murder-for-hire as part of an alleged scheme to assassinate a politician or U.S. government official on U.S. soil. Law enforcement foiled the charged plot before any attack could be carried out. Merchant is in federal custody.
“For years, the Justice Department has been working aggressively to counter Iran’s brazen and unrelenting efforts to retaliate against American public officials for the killing of Iranian General Soleimani,” said Attorney General Merrick B. Garland. “The Justice Department will spare no resource to disrupt and hold accountable those who would seek to carry out Iran’s lethal plotting against American citizens and will not tolerate attempts by an authoritarian regime to target American public officials and endanger America’s national security.”
“This dangerous murder-for-hire plot exposed in today’s complaint allegedly was orchestrated by a Pakistani national with close ties to Iran and is straight out of the Iranian playbook,” said FBI Director Christopher Wray. “A foreign-directed plot to kill a public official, or any U.S. citizen, is a threat to our national security and will be met with the full might and resources of the FBI.”
“The complaint unsealed today underscores, yet again, that those who engage in lethal plotting on U.S. soil will face the full force of the American justice system,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “The targeting of former and current officials by foreign actors is an affront to our sovereignty and our democratic institutions and the Department of Justice will use every possible tool to expose and disrupt this egregious activity.”
“Working on behalf of others overseas, Merchant planned the murder of U.S. government officials on American soil,” said U.S. Attorney Breon Peace for the Eastern District of New York. “This prosecution demonstrates that this office and the entire Department of Justice will take swift and decisive action to protect our nation’s security, our government officials and our citizens from foreign threats
“Fortunately, the assassins Merchant allegedly tried to hire were undercover FBI Agents,” said Acting Assistant Director Christie Curtis of the FBI New York Field Office. “This case underscores the dedication and formidable efforts of our agents, analysts and prosecutors in New York, Houston, and Dallas. Their success in neutralizing this threat not only prevented a tragic outcome but also reaffirms the FBI’s commitment to protecting our nation and its citizens from both domestic and international threats.”
According to allegations contained in the complaint and related publicly filed court documents, Merchant orchestrated a plot to assassinate a politician or U.S. government official on U.S. soil. In approximately April 2024, after spending time in Iran, Merchant arrived in the United States from Pakistan and contacted a person he believed could assist him with the scheme. That person reported Merchant’s conduct to law enforcement and became a confidential source (the CS).
In early June, Merchant met the CS in New York and explained his assassination plot. Merchant told the CS that the opportunity he had for the CS was not a one-time opportunity and would be ongoing. Merchant then made a “finger gun” motion with his hand, indicating that the opportunity was related to a killing. Merchant further stated that the intended victims would be “targeted here,” meaning in the United States. Merchant instructed the CS to arrange meetings with individuals whom Merchant could hire to carry out these actions. Merchant explained that his plot involved multiple criminal schemes: (1) stealing documents or USB drives from a target’s home; (2) planning a protest; and (3) killing a politician or government official.
At that meeting, Merchant began planning potential assassination scenarios and quizzed the CS on how he would kill a target in the various scenarios. Specifically, Merchant asked the CS to explain how a target would die in different scenarios. Merchant told the CS that there would be “security [] all around” the person.
Merchant stated that the assassination would occur after he left the United States and he would communicate with the CS from overseas using code words. The CS asked whether Merchant had spoken to the unidentified “party” back home with whom Merchant was working. Merchant responded that he had and that the party back home told him to “finalize” the plan and leave the United States.
In mid-June, Merchant met with the purported hitmen, who were in fact undercover U.S. law enforcement officers (the UCs) in New York. Merchant advised the UCs that he was looking for three services from them: theft of documents, arranging protests at political rallies, and for them to kill a “political person.” Merchant stated that the hitmen would receive instructions on who to kill either the last week of August or the first week of September, after Merchant had departed the United States.
Merchant then began arranging means to obtain $5,000 in cash to pay the UCs as an advance payment for the assassination, which he eventually received with assistance from an individual overseas. On June 21, Merchant met with the UCs in New York and paid them the $5,000 advance. After Merchant paid the $5,000 to the UCs, one of the UCs stated, “now we’re bonded,” to which Merchant responded “yes.” The UC then stated “Now we know we’re going forward. We’re doing this,” to which Merchant responded “Yes, absolutely.”
Merchant subsequently made flight arrangements and planned to leave the United States on Friday, July 12, 2024. On July 12, law enforcement agents placed Merchant under arrest before he could leave the country. Merchant has stated that he has a wife and children in Iran and a wife and children in Pakistan.
The FBI is investigating the case.
Assistant U.S. Attorneys Sara K. Winik, Gilbert Rein, and Douglas Pravda for the Eastern District of New York and Trial Attorneys David Smith and Joshua Champagne of the National Security Division’s Counterterrorism Section are prosecuting the case.
A criminal complaint is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
ComplaintFederal Jury Convicts New York Resident of Acting as a Covert Chinese AgentRead the Press Release
Shujun Wang, 75, a naturalized U.S. citizen of Chinese descent, an academic and author who helped start a pro-democracy organization in Queens, New York, that opposes the current communist regime in the People’s Republic of China (PRC), was convicted today on all four counts of an indictment charging him with acting and conspiring to act as an agent of a foreign government without prior notification to the U.S. Attorney General, criminal use of identification and making false statements to law enforcement.
“This defendant infiltrated a New York-based advocacy group by masquerading as a pro-democracy activist all while covertly collecting and reporting sensitive information about its members to the PRC’s intelligence service,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “Today’s verdict demonstrates that those who would seek to advance the Chinese government’s agenda of transnational repression will be held accountable.”
“The indictment could have been the plot of a John LeCarre or Graham Greene spy novel, but the evidence is shockingly real that the defendant led a double life, pretending for years to be an activist for democracy while he was secretly passing information to the Chinese government,” said U.S. Attorney Breon Peace for the Eastern District of New York. “The defendant was a perfect stooge for the PRC, a well-known academic and founder of a pro-democracy organization who was willing to betray those who respected and trusted him. When confronted with his shameful conduct, Wang lied to the FBI, but today’s verdict revealed the truth of his crimes and now he will face the consequences.”
“This conviction underscores the FBI’s commitment to countering espionage schemes by holding those accountable who collect U.S. activist information for the benefit of China,” said Executive Assistant Director Robert Wells of the FBI’s National Security Branch. “Any support for transnational repression is unacceptable, and the FBI works diligently with its partners to seek out and bring to justice those who support such activities.”
Wang is one of the founders of the pro-democracy Hu Yaobang and Zhao Ziyang Memorial Foundation, an organization located in Flushing, Queens, whose members are well-known pro-democracy dissidents who oppose the current government of the PRC. But instead of promoting democracy in the PRC, Wang, at the direction of PRC government officials, used his position within the Memorial Foundation and his status within the Chinese diaspora community to collect information about prominent activists, academics and dissidents, and reported that information to the PRC government.
According to court documents, since at least 2006, Wang operated under the direction and control of his co-defendants – four officials of China’s Ministry of State Security, which is responsible for the PRC’s foreign intelligence collection. At the MSS’ direction, Wang gathered information on people and groups that the PRC considers subversive, such as Hong Kong democracy protestors, advocates for Taiwanese independence and Uyghur and Tibetan activists, both in the United States and abroad. Wang conducted face-to-face meetings with MSS officials while on trips to the PRC and used an encrypted messaging application to receive taskings from his co-defendants and to send and receive written messages and files.
Wang often memorialized the information he collected in email “diaries” to be accessed by the MSS. These “diaries” included details about Wang’s private conversations with prominent dissidents, as well as the activities of pro-democracy activists and human rights organizations. Law enforcement recovered from Wang’s residence approximately 163 “diary” entries that he wrote to He, Ji, Li and Lu and other MSS officials. Additionally, in connection with his work for the MSS, Wang possessed telephone numbers and contact information belonging to Chinese dissidents.
Wang made materially false statements to federal law enforcement, falsely denying that he had contacts with PRC officials or the MSS. Over the course of three separate interviews, between 2017 to 2021, Wang repeatedly denied having any contact with individuals from the Chinese intelligence agency. During one of the interviews, in 2019, Wang was interviewed by federal law enforcement agents at John F. Kennedy Internation Airport in Queens, after he returned from China. Wang falsely stated that he had no contact with anyone from the Chinese government and that he had no Chinese government contact information.
The verdict followed a one-week trial. Wang’s co-defendants in the espionage and transnational repression scheme, Feng He, Jie Ji, Ming Li and Keqing Lu are MSS officials who remain at large. Wang is scheduled to be sentenced on Jan. 9, 2025 and faces up to 25 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant U.S. Attorneys Ellen Sise and Nina Gupta for the Eastern District of New York and Trial Attorney Garrett Coyle of the National Security Division’s Counterintelligence and Export Control Section prosecuted the case.
Founder of GPB Capital and CEO of Ascendant Capital Convicted of Fraud ChargesRead the Press Release
A federal jury in Brooklyn today convicted David Gentile, the founder, owner and Chief Executive Officer (CEO) of GPB Capital Holdings, LLC (GPB) and Jeffry Schneider, the owner and CEO of Ascendant Capital LLC (Ascendant Capital), on all counts of an indictment charging them with conspiracy to commit securities fraud, conspiracy to commit wire fraud, and securities fraud; Gentile was also convicted on two counts of wire fraud. The charges related to a years-long scheme to defraud more than 10,000 investors by misrepresenting the source of funds used to make monthly distribution payments and the amount of revenue generated by three of GPB’s investment funds. The verdict followed an eight-week trial before United States District Judge Rachel P. Kovner. When sentenced, Gentile and Schneider each faces up to 20 years in prison.
Breon Peace, United States Attorney for the Eastern District of New York and Christie M. Curtis, Acting Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the verdict.
“The jury found that the defendants lied to investors about the health of their funds and the source of fund distribution payments, all while they were fraudulently making those distribution payments with investor capital to maintain the appearance of successful portfolio companies,” stated United States Attorney Peace. “This Office has a proud history of prosecuting fraudsters who abuse the trust of investors, and we will continue to vigorously protect the integrity of the financial markets.”
Mr. Peace expressed his appreciation to the Securities and Exchange Commission, the New York City Business Integrity Commission and the New York City Police Department for their valuable assistance with the case.
GPB, founded in 2013 by Gentile, was a New York-based investment advisor registered with the SEC. GPB was the general partner of several investment funds that raised and invested capital in a portfolio of private equity investments. GPB worked with Ascendant Capital, a marketing firm founded by Schneider, to market the GPB funds to investors. Gentile and Schneider worked closely together on the operation and marketing of GPB funds, receiving regular updates as to the funds’ performance.
As proven at trial, between August 2015 and December 2018, the defendants engaged in a scheme to defraud investors and prospective investors in several GPB funds through material misrepresentations and omissions. Specifically, Gentile and Schneider, both individually and through employees at Ascendant Capital, represented to investors that the funds would make a monthly distribution payment that would be fully covered from operations, meaning that the companies purchased by the funds would be sufficiently profitable for the payments to be made from the companies’ cash flow, without drawing from capital raised by investors.
In reality, when the funds’ performance lagged, the defendants tried to disguise the shortfall with fraudulent, back-dated documents and paid investor distributions out of investor capital. Ultimately, investor capital was used to pay for a significant portion of the distributions made to investors. Gentile and Schneider were aware that the GPB Funds were underperforming and authorized the fraudulent distribution payments.
This case is being handled by the Office’s Business & Securities Fraud Section. Assistant United States Attorneys Artie McConnell, Jessica K. Weigel, Nicholas M. Axelrod and Kate Mathews are in charge of the prosecution, with the assistance of Paralegal Specialists Madison Bates and Allison Henry.
The Defendants:
DAVID GENTILE
Age: 57
Manhasset, New YorkJEFFRY SCHNEIDER
Age: 55
Austin, TexasE.D.N.Y. Docket No. 21-CR-54 (RPK)