Eastern District of New York
Press releases recorded for this federal judicial district.
Aventura Technologies, Inc. Pleads Guilty to Wire Fraud and Illegal Importation for Reselling Chinese Goods as U.S.-MadeRead the Press Release
CENTRAL ISLIP, NY – Earlier today, Aventura Technologies, Inc. (Aventura) pleaded guilty to committing mail and wire fraud conspiracy and illegal importation in federal court in Central Islip. The guilty plea reflects Aventura’s long-running, lucrative scheme to purchase Chinese-made security equipment (such as networked surveillance cameras) and resell it as U.S.-made, including to multiple agencies of the U.S. government, branches of the military and to customers overseas in the public and private sectors. The scheme began in 2006, ending in 2019 when charges were brought in this case. Aventura made more than $112 million in sales during that time. Today’s proceeding was held before United States Magistrate Judge Arlene R. Lindsay.
In connection with its guilty plea, the company agreed to dissolve itself and to forfeit more than $3 million in seized assets, including Aventura’s headquarters and a seventy-foot yacht partially owned by the defendants, as well as more than 7,000 seized items of merchandise. All seven individuals charged in this case have pleaded guilty, including Aventura’s nominal president Frances Cabasso and its true chief executive, her husband Jack Cabasso.
In addition to Aventura’s fraudulent resale of Chinese-made goods, the company defrauded customers by falsely claiming that Frances Cabasso was in charge of Aventura in order to obtain access to valuable government contracts reserved for women-owned businesses. Frances Cabasso pled guilty to wire fraud conspiracy in connection with that scheme.
The individual defendants who pled guilty in the case were Frances Cabasso, Jack Cabasso, and senior executives Jonathan Lasker, Christine Lavonne Lazarus and Eduard Matulik, as well as employees Wayne Marino and Alan Schwartz.
The charges were announced by Breon Peace, United States Attorney for the Eastern District of New York; James Smith, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI); Robert C. Erickson, Jr., Deputy Inspector General, General Services Administration Office of Inspector General (GSA OIG); Brian J. Solecki, Acting Special Agent in Charge, Defense Criminal Investigative Service, Northeast Field Office (DCIS); Thomas Fattorusso, Special Agent-in-Charge, Internal Revenue Service-Criminal Investigation (IRS-CI); Francis J. Russo, Director, Customs and Border Protection, New York Field Office (CBP); William W. Richards, Special Agent in Charge, Air Force Office of Special Investigations, Office of Procurement Fraud Investigations (AFOSI); Heather Hill, Acting Inspector General, Treasury Inspector General for Tax Administration (TIGTA); Greg Gross, Special Agent in Charge, Naval Criminal Investigative Service, Economic Crimes Field Office (NCIS); Keith K. Kelly, Special Agent-in-Charge, Army Criminal Investigation Division’s Fraud Field Office (Army CID); and Teri L. Donaldson, Inspector General for the Department of Energy (DOE IG).
“For years, the defendants, while pretending to be a women-owned business, intentionally corrupted the U.S. military supply chain by passing off Chinese-made networked electronics with known vulnerabilities as American-made,” stated United States Attorney Peace. “This case highlights the importance of national and international inter-agency cooperation in securing our cyber supply chain and protecting our military readiness. We will spare no effort in holding accountable those who undermine and threaten the national security of the United States.”
“This GSA contractor lied about its surveillance and security equipment being made in the United States when it was actually being made in China,” stated GSA Deputy Inspector General Erickson. “Company executives also misrepresented to GSA that the company was woman-owned to gain access to government contracts they otherwise would not have been eligible to receive. We remain committed to investigating contract fraud such as this and holding criminals accountable.”
“The introduction of misbranded parts and materials into the DoD’s supply chain poses a significant risk to America’s military readiness and our national security,” stated DCIS Acting Special Agent-in-Charge Solecki. “We remain committed to working with our law enforcement partners and the Department of Justice, to ensure that individuals and companies who engage in fraudulent activity, at the expense of our nation’s military members, are investigated and prosecuted.”
“Executives of Aventura Technologies have already pled guilty, detailing how the company fronted illegal importations and wire fraud by the sale of thousands of goods that entered the U.S. under fraudulent circumstances to federal entities,” stated IRS-CI Special Agent-in-Charge Fattorusso. “Their scheme went further to purport that Aventura was a woman-owned business simply to win additional government contracts. It is not common to see both the executives and the company face prosecution, but in this case, today’s guilty plea is proof of the significant amount of evidence present in this case.”
“U.S. Customs and Border Protection provided the critical link to an ongoing investigation that resulted in the takedown of an elaborate criminal enterprise,” stated CBP Director Russo. “This case serves as a great example of collaborative law enforcement efforts to uncover and dismantle criminal enterprises that seek to defraud the United States government for personal gain while jeopardizing our national defense and causing economic harm to their competitors.”
“This outcome demonstrates the Office of Procurement Fraud’s commitment to identify and hold accountable those who engage in fraudulent behavior that places our warfighters at risk,” stated AFOSI Special Agent-in-Charge Richards. “AFOSI, alongside our joint investigative and prosecutorial partners, will work tirelessly to combat fraud threatening the Department of the Air Force.”
“The Treasury Inspector General for Tax Administration (TIGTA) is the nation’s tax watchdog agency committed to ensuring the integrity of the IRS contracting and procurement process,” stated TIGTA’s Acting Inspector General Hill. “We are aggressively investigating individuals who attempt to defraud the IRS, like the individuals in this case. Companies working with the IRS and the Department of Treasury must conduct themselves with integrity and honesty. Thank you to the U.S. Attorney’s Office and law enforcement partners for their support in this investigation.”
“Falsely misrepresenting the country of origin for equipment sold to the U.S. Government that is directly used in support of the safety and readiness of our warfighters is a serious crime,” said NCIS Special Agent-in-Charge Gross. “NCIS is committed to protecting the integrity of the Department of the Navy’s procurement and acquisitions process.”
“Today's plea is a fitting end for those who conspire to defraud the government,” stated Army CID Special Agent-in-Charge Kelly. “We are proud to work alongside our federal law enforcement partners to protect the United States Government from those who seek to misrepresent themselves and their product, thereby threatening the readiness of the U.S. Army and potentially risking the lives of countless soldiers.”
“The installation of the material provided by Aventura in a Department of Energy facility would have provided a possible pathway for the PRC to gather information on the personnel who work at one of the Nation’s most advanced research facilities,” said DOE Inspector General Donaldson. “I thank our law enforcement partners who supported our Special Agents to ensure this equipment didn’t make its way into the lab, and the US Attorney’s Office in the Eastern District of New York for holding the company who put our national security at risk, accountable for its actions.”
The Country of Origin Fraud and Unlawful Importation Scheme
As admitted in court, Aventura lied for over a decade to its customers, including the U.S. military, the federal government, numerous private customers in the United States, and public and private sector customers abroad. Between 2008 and November 2019, Aventura made upwards of $112 million, including over $20 million in federal government contracts, while claiming that it was manufacturing its products at its headquarters in Commack, New York. In fact, since at least 2006, Aventura imported goods, primarily from the People’s Republic of China (PRC), then resold them as American-made or manufactured in a small number of other countries.
The company’s marketing relied heavily on U.S. flags and “American-made” branding, and its sales force routinely asserted that Aventura was the sole U.S. manufacturer of security equipment. As described below, Jack Cabasso went to extreme lengths to conceal the Chinese origin of his products, while at the same time writing to U.S. government procurement officials to accuse his competitors of reselling Chinese-made goods. Visitors to Aventura’s corporate headquarters were shown a fictitious “lab,” and were told that a separate building was reserved for classified government work and was off-limits to visitors. In fact, Aventura did not own or occupy the building in question.
In the course of its investigation, the government intercepted and covertly marked numerous shipments from PRC sources to Aventura’s Commack, New York headquarters. In some cases, cameras shipped from the PRC were pre-marked with Aventura’s logo and the phrase “Made in USA,” accompanied by an American flag. In many instances, the items were later resold to government agencies to whom the defendants falsely represented that the products were American-made. Examples include:
- In March 2019, the U.S. Navy ordered from Aventura a $13,500 laser night vision camera that was specified as American-made on Aventura’s U.S. General Services Administration (GSA) price list. In April 2019 at a shipping facility in Jamaica, Queens, a team led by Customs and Border Protection (CBP) officers intercepted a shipment from a PRC manufacturer to Aventura that contained a camera matching the Navy’s order, and surreptitiously marked it for later identification. Two weeks later, that same camera was delivered to Naval Submarine Base New London in Groton, Connecticut.
- In September 2018, the Department of Energy (DOE) ordered approximately $156,000 worth of supposed American-made networked automated turnstiles from Aventura, to be installed at a facility in Tennessee. In January 2019, turnstiles matching DOE’s order were intercepted in a shipment from a PRC manufacturer and marked by CBP; one month later, they arrived at the DOE facility in Tennessee. The crates shipped by Aventura to the DOE appeared identical to those that the CBP-led team had inspected, except that the shipping labels from the PRC directing the crates to Aventura had been peeled off, leaving behind visible traces of paper and glue. A special agent with the Department of Energy Office of Inspector General placed a call to Lazarus regarding the turnstile shipment in May 2019. During the call, Lazarus falsely stated that the turnstiles were “U.S. made [in] New York.”
- In 2018, Aventura sold the U.S. Air Force 25 body cameras. Aventura was contractually required to provide goods from a limited set of countries that did not include the PRC. In August 2018, however, an Air Force service member observed Chinese characters on the built-in screen of one of the body cameras. The body camera was sent for analysis to a specialist, who downloaded its firmware and found numerous indications that the camera was manufactured in the PRC. The camera contained multiple preloaded images that were apparently designed to display on the built-in screen—including the U.S. Air Force logo, the logo of the PRC Ministry of Public Security, and the logo of a PRC manufacturer of security equipment. All three logos had been saved to the camera’s firmware using the same software, on a computer that was set to a time zone in the PRC—indicating that the camera’s manufacturer in the PRC had been aware that the U.S. Air Force was a likely end user of the camera.
Coverup of the Country of Origin Fraud and Unlawful Importation Scheme
The defendants, working with counterparts in the PRC, went to extraordinary lengths to conceal this scheme. For example:
- In November 2018, Jack Cabasso exchanged emails with an employee of a PRC manufacturer of surveillance equipment (PRC Manufacturer-2), identifying the need to “hide” the name of PRC Manufacturer-2 from Aventura’s customers. One week later, Cabasso stressed the need to take steps so that “they cannot trace” the product to PRC Manufacturer-2. Cabasso added that “the biggest problem” was that PRC Manufacturer-2’s initials were marked on its circuit boards, and said that he had “lost several potential customers” because of similar practices by another PRC manufacturer (PRC Manufacturer-1). The employee responded that the company’s initials would be removed from all circuit boards shipped to Aventura.
- Similarly, in December 2018, Aventura executives exchanged emails with employees of another PRC-based digital video equipment manufacturer (PRC Manufacturer-4). They complained to the employees that “communication from the server to the client contains [PRC Manufacturer-4’s name] visible in clear text. This should be changed.” When one of the employees wrote that this could not be changed, Jack Cabasso responded: “WE CANNOT HAVE CUSTOMERS ABLE TO SEE [PRC Manufacturer-4’s name]”, later adding: “we also sent a sample to a customer and he found [PRC Manufacturer-4] … branding in the [operating system] which is a problem.”
On or about November 23, 2016, Jack Cabasso sent an email to a GSA representative accusing 12 other GSA contractors of selling products to the U.S. Government that were manufactured by a PRC manufacturer of surveillance equipment (PRC Manufacturer-1). Cabasso asserted that this was a “big problem” and “doesn’t get any worse,” because PRC Manufacturer-1 was “actually the Communist Chinese Government and ha[d] ‘significant’ cybersecurity issues aside from” compliance with U.S. laws specifying country-of-origin requirements for government purchases. Cabasso stated that PRC Manufacturer-1 “will acknowledge they manufacture no products outside of China,” and appended an article about the removal of cameras manufactured by PRC Manufacturer-1 from the U.S. Embassy in Afghanistan.
Notably, Aventura was importing security equipment from PRC Manufacturer-1 while Jack Cabasso was complaining to GSA about other contractors’ supposed dealings with the company. For example, bank records show that Aventura wired funds to PRC Manufacturer-1 in the PRC on or about October 31, 2016 and November 29, 2016, and law enforcement records show that on or about December 13, 2016, Aventura imported from PRC Manufacturer-1 in PRC an approximately 1,800-pound shipment of goods manifested as “digital video.”
In November 2018, Aventura executives communicated with a potential distributor in Qatar who asked for assurance that Aventura’s cameras were American-made. Cabasso responded: “I believe Ed [Matulik] confirmed that they are made in the Aventura factory here in New York and [anyone] may visit at any time.” Cabasso attached what purported to be a photograph of Aventura’s assembly line, depicting a row of seated individuals in blue lab coats and protective hairnets working at laboratory benches—a photograph that also appeared on Aventura’s website. In reality, this photograph first appeared in a trade publication article recounting a reporter’s visit to PRC Manufacturer-1’s manufacturing facility in Hangzhou, PRC, and it depicts PRC Manufacturer-1’s assembly line—not Aventura’s.
The Scheme to Misrepresent Aventura as a Woman-Owned Small Business
In a parallel scheme, Jack and Frances Cabasso, along with other Aventura executives, falsely represented on numerous occasions that Frances Cabasso was the chief executive of Aventura. In fact, Frances Cabasso was in charge only on paper; the true chief executive officer of Aventura was Jack Cabasso, and Frances Cabasso played a minimal role at the company. This misrepresentation gave Aventura access to government contracts that were set aside for women-owned small businesses, a category that is legally defined to include only businesses owned by women where management and daily operations are also controlled by one or more women.
Aventura’s website and its GSA webpage identify Aventura as a woman-owned business, and the defendants repeatedly certified to the GSA and stated to government procurement officers that Aventura is a woman-owned business. For example, on or about January 13, 2014, a GSA employee emailed Frances Cabasso to “verify if Aventura Technologies, Inc. is a Woman-Owned business.” She replied: “Yes we are still a certified women-owned business.” Aventura won multiple contracts from the federal government on the strength of its status as a woman-owned business.
In fact, real control at Aventura was exercised by Jack Cabasso. Frances Cabasso worked as a bookkeeper at a nearby business and was rarely present at Aventura’s offices. At times, emails sent to Frances Cabasso’s email address were auto-forwarded to Jack Cabasso, who sometimes signed his responses in Frances’s name. The defendants openly joked about the fact that Frances Cabasso did not work at Aventura. For example, in an instant message exchange on December 5, 2016 between Jack Cabasso and Lazarus, both defendants discussed moving another employee into “Fran’s office”--the office of the purported owner of the company—putting the word “Fran’s” in quotation marks.
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The government’s case is being handled by the Office’s National Security and Cybercrime Section. Assistant United States Attorneys Alexander Mindlin, Kayla Bensing and Claire Kedeshian are in charge of the prosecution. Significant contributions were made by former Assistant United States Attorney Ian Richardson, now Chief Counsel for Corporate Enforcement within the Department’s National Security Division.
The Defendant:
AVENTURA TECHNOLOGIES, INC.
Commack, New YorkE.D.N.Y. Docket No. 19-CR-582 (JMA)
Billionaire Chinese National Pleads Guilty to Straw Donor Campaign Contribution Scheme and Other FraudsRead the Press Release
Earlier today, in federal court in Central Islip, Hui Qin, also known as “Qin Hui,” “Hui Quin,” “Muk Lam Li” and “Karl,” a citizen of the People’s Republic of China (PRC), who was listed on Forbes Magazine’s List of Billionaires and who operated SMI Culture, a Hong Kong-based entertainment entity, pleaded guilty to an Information charging him with making political contributions in the names of others, immigration fraud and producing a false identification document. The proceeding was held before United States Magistrate Steven L. Tiscione. As part of his plea agreement, Qin agreed to abandon his status as a Lawful Permanent Resident (LPR) of the United States and to be removed to a country outside of the United States. When sentenced, Qin faces up to 27 years’ imprisonment. Qin has been incarcerated since his arrest on October 2, 2023.
Breon Peace, United States Attorney for the Eastern District of New York, James Smith, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), Thomas Fattorusso, Special Agent-in-Charge, Internal Revenue Service-Criminal Investigation, New York (IRS-CI), and Erin Keegan, Acting Special Agent-in-Charge, Homeland Security Investigations, New York (HSI), announced the guilty plea.
“Qin pleaded guilty today to engaging in a brazen web of deception, spreading lies to federal election and immigration authorities and a state agency,” stated United States Attorney Peace. “Ensuring election integrity and rooting out campaign contribution fraud are priorities of the Department of Justice, including my Office. No one is above the law, no matter their wealth or station in society, and this Office will vigorously prosecute all criminals who lie to government agencies to further their own ends.”
“Today, Hui Qin pled guilty to several fraudulent schemes. Qin admitted to making straw donations to multiple elected officials at both federal and local levels. Qin’s guilty plea underscores the FBI’s commitment to ensuring integrity and transparency in campaign donations and election security. Any individual attempting to illegally influence our election process will be held accountable in the criminal justice system,” stated FBI Assistant Director-in-Charge Smith.
“Qin is a citizen of the People’s Republic of China, but made straw donations to major political campaigns, hiding the true source of the political contribution from the public,” stated IRS-CI Special Agent-in-Charge Fattorusso. “Not only is this unethical, it’s illegal. Qin travelled to the United States, obtained a false visa, willfully violated our laws, then sought to conceal his behavior. IRS Criminal Investigation remains committed to using our expertise, working alongside our law enforcement partners, to detect and hold those accountable who believe rules of law simply do not apply to them.”
“Hui Qin's guilty plea underscores the federal law enforcement system's painstaking, methodical investigative capabilities when faced with a threat to our safety and democracy. Today and always, HSI New York stands united with our partners against any subjects in their attempts to jeopardize our national security," stated HSI New York Acting Special Agent-in-Charge Keegan.
As set forth in court filings and facts presented at the plea proceeding, between December 2021 and December 2022, Qin agreed to reimburse other individuals who made contributions on his behalf to the campaign committees for a candidate for a New York City-wide political office, a member of the United States House of Representatives for a congressional district in the Eastern District of New York and candidate for a House of Representatives seat in a Rhode Island congressional district. During the scheme, without the knowledge of these campaign committees, straw donors made approximately $11,600 in contributions on Qin’s behalf, which caused the campaign committees to unwittingly file false contribution reports with the Federal Election Commission in 2022.
Additionally, as part of his plea Qin admitted that, in April 2019, he filed a false application for LPR status with United States Citizenship and Immigration Services. In the application, Qin falsely swore, under penalty of perjury, that he had never used another name. In fact, in 2008, a PRC government official provided Qin with the alias “Muk Lam Li” and between 2008 and the filing of Qin’s LPR application, Qin obtained identification documents, including a Hong Kong identification card, a PRC identification card and a Hong Kong passport in the name of the Li alias, which contained Qin’s photograph, but a date of birth different than Qin’s. Around September 2017, Qin used the Li alias to transfer more than $5 million from the PRC to a United States bank account, a portion of which was used to purchase a luxury Manhattan apartment where Qin resided.
Qin also pleaded guilty to engaging in interstate travel to fraudulently obtain a Florida Driver’s License. In December 2020, Qin travelled from New York to Florida and applied for a Driver’s License at Florida Department of Highway Safety and Motor Vehicles (FLHSMV). At the time of his travel, Qin was a resident of Old Westbury, Long Island and Manhattan, but he signed an application stating that it was “true and correct” that he resided at an address in Miami, where he had never lived. To bolster this false assertion, Qin presented FLHSMV officials with fake bank and credit card statements bearing the name “Hui Quin” and the false Miami address. After FLHSMV issued Qin a Florida Driver’s License, he presented it to banks and a motor vehicle insurer as identification.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorneys Bradley T. King and Adam Toporovsky are in charge of the prosecution.
The Defendant:
HUI QIN (also known as “Qin Hui,” “Hui Quin,” “Muk Lam Li” and “Karl”)
Age: 56
Old Westbury, New York and Manhattan, New YorkE.D.N.Y. Docket No. 24-CR-100 (JMA)
Queens Man Sentenced to 16 Months in Prison for Laundering Bitcoin and Operating Unlicensed Money Transmitting BusinessRead the Press Release
Mustafa Goklu, also known as “Mustangy,” was sentenced yesterday in federal court in Brooklyn by United States District Judge Pamela K. Chen to 16 months’ imprisonment for money laundering and operating an unlicensed money transmitting business as part of a scheme to launder Bitcoin that the defendant believed to be the proceeds of drug trafficking. Goklu was convicted of those charges after a jury trial in October 2022.
Breon Peace, United States Attorney for the Eastern District of New York, and Frank A. Tarentino, III, Special Agent-in-Charge, Drug Enforcement Administration, New York Division (DEA), announced the sentence.
“Drug trafficking would be less pervasive and lucrative if money launderers like the defendant did not enable washing the illegal proceeds of the deadly trade,” stated United States Attorney Peace. “In this case, Goklu used an online peer-to-peer cryptocurrency exchange to advertise his cryptocurrency for cash exchange services. Facilitating the ability of drug traffickers to distribute narcotics in the United States is fully deserving of a prison sentence.”
“Technology may change the manner in which money laundering takes place; but not the motive,” said DEA Special Agent in Charge Frank Tarentino. “Money launderers' true nature is to conceal criminality and this sentence shines a light on Mustafa Goklu’s conviction. DEA is focused on bringing drug traffickers and those who support the distribution of poison through money laundering to justice. I commend the DEA NY Cyber Investigative Unit and our partners at the U.S. Attorney’s Office for the Eastern District of New York for their diligent work throughout this investigation.”
In July 2018, DEA Special Agents identified an advertisement posted on the website “localbitcoins.com” where an individual with the username “Mustangy” offered to purchase up to $99,999 worth of Bitcoins (BTC), a type of digital currency also known as cryptocurrency, and convert them into U.S. currency for a fee. Law enforcement agents later identified Goklu as the individual using the username Mustangy. On July 11, 2018, a DEA Special Agent acting in an undercover capacity (the “UC”) began exchanging encrypted text messages with Goklu to arrange in-person exchanges of BTC to U.S. currency. The UC and the defendant subsequently met and engaged in seven transactions or attempted exchanges of BTC to cash over a nine-month period, culminating in Goklu’s arrest in April 2019. The UC indicated to the defendant on multiple occasions that the source of the BTC the defendant was exchanging was narcotics trafficking and that as part of the UC’s business he sold oxycodone, Adderall, and marijuana. The transactions occurred in the defendant’s parked Mercedes-Benz, at a coffee shop in Sunnyside, Queens, and at locations in Manhattan. The amounts exchanged at each transaction ranged from approximately $5,000 to $50,000 for a total of $133,000. During each transaction, the UC transferred BTC to Goklu’s cryptocurrency wallet, after which the defendant retained a seven or eight percent commission fee and provided the UC with the remaining amount in cash. The evidence introduced at trial also showed that the defendant was engaged in similar illicit Bitcoin exchanges with multiple other individuals.
The government’s case is being handled by the Office’s International Narcotics and Money Laundering Section. Assistant United States Attorneys Gillian Kassner and Francisco J. Navarro are in charge of the prosecution with the assistance of Paralegal Specialist Bridget Donovan.
The Defendant:
MUSTAFA GOKLU (also known as “Mustangy”)
Age: 50
Sunnyside, QueensE.D.N.Y. Docket No. 19-CR-386 (PKC)
Long Island Man Sentenced to 10 Years in Prison for Sprawling COVID-19 Loan FraudRead the Press Release
Earlier today, at the federal courthouse in Central Islip, Rami Saab, also known as “Rami Hasan,” was sentenced by United States District Judge Gary R. Brown to 10 years in prison for his role as the mastermind of a sprawling conspiracy to fraudulently obtain disaster relief loans amid the COVID-19 pandemic. As part of the sentence he is also required to pay restitution of approximately $9.6 million. Saab pleaded guilty in July 2023 to conspiracy to commit wire fraud, stemming from his operation of a yearlong scheme to defraud banks and the Small Business Association (SBA) of millions of dollars’ worth of small business loans under the Paycheck Protection Program (PPP) and Economic Injury Disaster Loan Program (EIDL). A second defendant charged in the indictment remains at large.
Breon Peace, United States Attorney for the Eastern District of New York, Thomas M. Fattorusso, Special Agent-in-Charge, Internal Revenue Service Criminal Investigation, New York (IRS-CI), Erin Keegan, Acting Special Agent-in-Charge, Homeland Security Investigations, New York (HSI), and Christopher Gust, Acting Special Agent in Charge, Treasury Inspector General for Tax Administration (TIGTA) announced the sentence.
“This defendant used fraud and deceit on an extraordinary scale to exploit government programs designed to keep struggling small businesses afloat during an unprecedented public health crisis,” stated United States Attorney Peace. “Today’s sentence sends a strong message to all those who saw the public response to the COVID-19 pandemic as little more than a get-rich-quick scheme: this Office will find you and prosecute you to the fullest extent of the law.”
Mr. Peace expressed his appreciation to the Nassau County Police Department for their assistance on the case.
“Opportunists like Saab continue to victimize the American taxpayer by pulling from benefits they don’t legitimately qualify for just to satisfy their own greed. Saab manipulated the COVID-19 loan program so he could fill his pockets with nearly ten million dollars meant for those who suffered as a result of the pandemic. But now, thanks to strong law enforcement partnerships and an incredible prosecution team, Saab is not only going to spend years behind bars, but he is also required to pay millions in restitution,” said Thomas M. Fattorusso, Special Agent in Charge of IRS-CI New York.
“Rami Saab showed a blatant disregard for all legal — and moral — responsibility in the midst of an unprecedented crisis. COVID-19 relief fraud is far from a victimless crime,” said HSI New York acting Special Agent in Charge Erin Keegan. “The defendant not only stole from hardworking taxpayers, but took advantage of a federal program meant to truly help those experiencing tremendous financial difficulties due to the pandemic. Today’s sentencing is the result of outstanding coordination between our law enforcement partners to address COVID-19 related fraud.”
“The Treasury Inspector General for Tax Administration aggressively pursues those who attempt to abuse the Coronavirus Aid, Relief, and Economic Security Act and its Paycheck Protection Program, which was created to assist legitimate business owners during the pandemic,” stated acting Special Agent in Charge Christopher Gust. “We appreciate the efforts of our law enforcement partners and the U.S. Attorney’s Office to ensure individuals engaged in criminal activity are held to account.”
As set forth in court filings, between May 2020 and May 2021, at the height of the COVID-19 pandemic, Saab and a network of co-conspirators fraudulently applied for more than $32 million in PPP and EIDL loans on behalf of shell corporations they controlled. Relying on false information and fabricated documentation supplied by Saab and his coconspirators, the SBA and private banks administrating the PPP and EIDL programs granted at least 20 such applications, resulting in the disbursement to Saab and his coconspirators of more than $9.6 million in emergency-relief funds intended for distressed small businesses. Using a web of more than 50 otherwise dormant bank accounts, Saab and his coconspirators laundered the fraud proceeds to conceal their true nature and source, before using the funds for their own self-enrichment, withdrawing large portions of the loan proceeds in cash, and transferring sums to associates overseas in Turkey and elsewhere.
PPP and EIDL provided qualifying small businesses with low-interest loans. The Coronavirus Aid, Relief and Economic Security (CARES) Act expanded EIDL to provide economic support to help offset the temporary loss of revenue experienced by businesses due to the COVID-19 pandemic. The EIDL payments did not have to be repaid.
The government’s case is being prosecuted by the Office’s Long Island Criminal Division. Assistant United States Attorneys Anthony Bagnuola and Michael Maffei are in charge of the prosecution. Assistant United States Attorney Madeline O’Connor is handling forfeiture matters in the case.
The Defendant:
RAMI SAAB, also known as “Rami Hasan”
Age: 44
Glen Cove, New YorkE.D.N.Y. Docket No. 22-CR-344 (S-1) (GRB)
Online Cryptocurrency Exchanger Pleads Guilty to Operating Unlicensed Money Transmitting BusinessRead the Press Release
Earlier today, in federal court in Central Islip, David Scotese pleaded guilty to operating an unlicensed money transmitting business. As part of his plea agreement, Scotese agreed to forfeit cryptocurrency, cash, and precious metals worth in excess of $1.3 million at current valuation. The proceeding was held before United States District Judge Joan M. Azrack. When sentenced, Scotese faces up to five years in prison.
Breon Peace, United States Attorney for the Eastern District of New York, Thomas Fattorusso, Special Agent-in-Charge, Internal Revenue Service-Criminal Investigation (IRS-CI), Erin Keegan, Acting Special Agent-in-Charge, Homeland Security Investigations, New York (HSI New York), Edward A. Caban, Commissioner, New York City Police Department (NYPD), and Daniel B. Brubaker, Inspector-in-Charge, United States Postal Inspection Service (USPIS), announced the guilty plea.
“With his guilty plea today, Scotese is taking responsibility for operating a money exchanging and transmitting business in defiance of the critical legal requirements that are intended to secure our financial system from corruption by drug traffickers and other criminals,” stated United States Attorney Peace. “This prosecution should serve as a warning to other ask-no-questions, black-market money transmitting businesses that FinCEN registration and regulatory compliance are not mere technicalities, but a necessary part of our collective efforts against crime, and that we will prosecute unlicensed money transmitters who flout these rules.”
“While operating an unlicensed money transmitting business, Scotese moved money for his clients with no questions asked. Without ‘knowing the customer,’ crypto was bought and sold through his exchange with no regard of whether or not the initial funds were legitimate. This business practice can set a dangerous precedent, and with today’s guilty plea, Scotese will soon learn the consequences of his actions,” stated IRS-CI Special Agent-in-Charge Fattorusso.
“David Scotese defied vital financial regulations in posing as a legitimate cryptocurrency dealer despite having received no such accreditation. Such legal requirements were established to not only ensure fairness, but also oversight in what is undoubtedly a new and emerging market,” said HSI New York Acting Special Agent in Charge Erin Keegan. “I thank HSI New York’s El Dorado Task Force Darkweb and Cryptocurrency investigators, HSI San Diego, and HSI Riverside, in addition to our remarkable law enforcement partners, for ensuring the public remains protected from those attempting to skirt the rules at their expense.”
“Today’s admission of guilt makes abundantly clear that individuals who facilitate the illegal transfer of money will be held accountable; the security of our banking system depends on it,” stated NYPD Commissioner Caban. “The NYPD will continue to work hand in hand with all of our law enforcement partners to identify and stop these criminals. Our message is clear: Using new technology to put profits over compliance is not a path to riches; it is a path to federal prosecution.”
“At the core of our mission as Postal Inspectors is our duty to ensure a secure mail system for the American public. Scotese allegedly used the U.S. Mail to violate federal banking regulations by running an illegal cash for crypto scheme. His plea today should serve as a clear example to anyone who will attempt to evade the law and use the mail to commit a crime. Postal Inspectors and our law enforcement partners will see to it that you are prosecuted to the fullest extent of the law,” said Daniel B. Brubaker, Postal Inspector in Charge of the New York Division.
As alleged in public filings and statements made in court, since at least 2016, Scotese worked and advertised himself online as a cryptocurrency exchanger and transmitter but never registered with the Department of the Treasury, Financial Crimes Enforcement Network (FinCEN) or obtained a state license, as required by law in order to ensure effective financial reporting and anti-money laundering compliance. At the time of his arrest in California, Scotese had over $130,000 in cash in his home and vehicle, as well as hundreds of thousands of dollars in coins and precious metals obtained through the operation of his unlicensed money transmitting business. Scotese has agreed to forfeit these assets in addition to hundreds of thousands of dollars of various cryptocurrency assets.
The investigation was conducted in coordination with HSI San Diego’s Costa Pacifico Money Laundering Task Force and HSI Riverside’s Inland Commercial Enforcement and Financial Interdiction Team.
Assistant United States Attorney Robert M. Pollack is in charge of the prosecution, and Assistant United States Attorney Tanisha R. Payne of the Office’s Asset Recovery Section is handling forfeiture matters.
The Defendant:
DAVID SCOTESE
Age: 54
Murietta, CaliforniaE.D.N.Y. Docket No. 23-CR-231 (JMA)
New York-Presbyterian/Brooklyn Methodist Hospital Settles Health Care Fraud Claims for $17.3 MillionRead the Press Release
Breon Peace, United States Attorney for the Eastern District of New York, announced today a settlement agreement with New York-Presbyterian/Brooklyn Methodist Hospital. The settlement agreement requires the hospital to pay $17.3 million to resolve allegations that it paid unlawful kickbacks to physicians at the hospital’s chemotherapy infusion center. The payments were made pursuant to a contractual arrangement that linked the compensation physicians received to the number of referrals the physicians made for services at the Center. The agreement also resolves claims that physicians at the infusion center failed to adequately supervise the chemotherapy services. The settlement resolves claims under the federal and New York State False Claims Acts. Of the total settlement amount, $16.410 million is to be paid to the federal government, and $890,000 is to be paid to New York State. The Hospital voluntarily self-disclosed the issues to the United States.
“This settlement addresses a compensation scheme that incentivized physicians to make referrals for services based on how much they would be paid and were essentially kickbacks,” stated United States Attorney Peace. “New York-Presbyterian/Brooklyn Methodist Hospital voluntarily self-disclosed the conduct to the United States, which allowed it to mitigate the penalties associated with the conduct.”
To ensure that physicians make medical decisions based solely on the needs of their patients, Medicare and Medicaid rules prohibit physicians from receiving any kind of remuneration in exchange for patient referrals for services. The United States’ investigation of New York-Presbyterian/Brooklyn found that physicians at a chemotherapy infusion center affiliated with the hospital were paid based, in part, on the volume of referrals they generated for it.
Medicare and Medicaid rules also require that those billing for medical services be involved in the services. A hospital, for instance, cannot bill for the services of a physician if that physician did not participate in the patient care. The rules recognize that non-physicians, like nurses, provide care to patients; such care is permissible and, often, desirable. But, in many instances, such care must be provided under the supervision of a physician who is available to assist in the care if need be. At the infusion center at issue in this matter, Medicare and Medicaid were billed for services provided by non-physicians even in instances in which physicians were not available to adequately supervise the services.
The matter was handled by Assistant United States Attorney Michael Blume of the Office’s Civil Division.
Former Chairman of the Village of Hempstead Housing Authority Sentenced to 10 Years in Prison for Fraud and CorruptionRead the Press Release
Earlier today, in federal court in Central Islip, Cornell Bozier, the former Chairman of the Board of Commissioners (Board) at the Village of Hempstead Housing Authority (VHHA) was sentenced by United States District Judge Joan M. Azrack to 10 years in prison for conspiracy to commit honest services fraud and three counts of federal program bribery. Bozier was convicted by a federal jury in April 2019.
Breon Peace, United States Attorney for the Eastern District of New York, James Smith, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and William Woolard, Acting Special Agent-in-Charge, Department of Housing and Urban Development, Office of the Inspector General (HUD-OIG), Northeast Region, announced the sentence.
“The defendant exploited his official position as Chairman of the Village of Hempstead Housing Authority to enrich himself at the expense of the elderly, disabled and low-income residents whom he was meant to serve,” stated United States Attorney Peace. “Corruption at any level of government erodes public confidence in the institution and will not be tolerated in this district as the defendant learned the hard way.”
“Cornell Bozier and his co-conspirators engaged in an egregious false billing and kickback scheme resulting in the theft of critical taxpayer dollars,” stated HUD-OIG Acting Special Agent-in-Charge Woolard. “Moreover, they risk damaging the integrity of HUD programs and violate the trust of the communities who rely on them. HUD OIG will continue to work with its law enforcement partners to vigorously pursue those who seek to profit by abusing HUD-funded programs.”
The VHHA was established to provide low-income families, disabled residents, and senior citizens in Hempstead with safe, sanitary, and affordable housing, and received nearly $1 million in federal funds from the Department of Housing and Urban Development (HUD) during the defendant’s tenure as Board Chairman from 2011 to 2013. The funding from HUD included money needed for capital improvements, major repairs, and other large-scale construction projects. Before HUD would release funds for the more expensive construction projects, the VHHA was required to follow a Procurement Policy designed to ensure open and transparent competition in the bidding process and contract awards to the lowest responsible bidder.
As proven at Bozier’s trial and set forth in court filings, rather than providing his residents with the honest services they needed, the defendant used his official position to orchestrate a bid-rigging and kickback scheme by filling numerous positions in the Housing Authority with either co-conspirators who were actively participating in the scheme, or people he believed could be manipulated and would not interfere. Bozier relied on bribes, threats and intimidation to pressure other Board members into supporting his fraudulent schemes. Bozier also fraudulently induced the Board to declare numerous projects as emergencies to sidestep the normal procedure process by which the VHHA obtained HUD funding. During the conspiracy, the defendant and his co-conspirators submitted grossly inflated bids to the Board for repair projects at properties throughout the VHHA and Bozier used his de facto control over the Board to secure the acceptance of those bids. The work related to those projects was then subcontracted out at a fraction of the amount paid by the VHHA for nominal and, in many cases, substandard repairs and work. Bozier demanded and received numerous cash payments from his co-conspirators, who prepared and submitted the fraudulent bids as kickbacks for his role in the scheme, which totaled more than $100,000.
For example, the VHHA paid a co-conspirator company, Devlin Mac Construction, $273,900 to replace the roof at one of its apartment buildings. Rather than replacing the roof, a subcontractor was paid $23,000 to patch and repair certain sections. The rest of the VHHA’s money was split between the defendant and his co-conspirators, with the defendant receiving $55,000 in kickbacks for his role. This scheme was repeated and fraudulent bids were submitted for more than a half dozen construction projects during Bozier’s tenure, as he tried to steal as much of the VHHA’s money as he could. In total, the defendant steered more than $800,000 of VHHA funds to co-conspirator companies as part of his fraudulent scheme and received more than $100,000 in kickback payments.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorneys Paul G. Scotti and Artie McConnell are in charge of the prosecution. Assistant United States Attorney Madeline O’Connor of the Office’s Civil Division handled forfeiture matters.
The Defendant:
CORNELL BOZIER
Age: 63
North Baldwin, Long IslandE.D.N.Y. Docket No. 15-CR-303 (S-1) (JMA)
Corporate Insider Sentenced to 60 Months in Prison for Conspiring with Long Island Boiler Room to Pump and Dump Stock on Elderly InvestorsRead the Press Release
Earlier today, in federal court in Central Islip, Michael Watts, a former registered broker who participated in a criminal conspiracy to promote and manipulate the price of shares in Hydrocarb Energy Corp. and other companies, was sentenced by United States District Judge Joanna Seybert to 60 months’ imprisonment for conspiracy to commit securities fraud, securities fraud, conspiracy to commit wire fraud, money laundering conspiracy and money laundering. At an earlier proceeding, the Court ordered Watts to pay more than $560,000 in forfeiture and $4,430,354.03 in restitution. Watts was convicted by a federal jury in October 2019 following a three-week trial.
Breon Peace, United States Attorney for the Eastern District of New York, announced the sentence.
“Michael Watts and his co-conspirators lined their pockets with the lifetime savings of hard-working folks across the country with ruinous results,” stated United States Attorney Peace. “Today’s sentence holds Watts accountable for the economic harm he intentionally inflicted on the victims, many of them senior citizens living on a fixed income, and should serve as a warning to others like him that there will be consequences for crimes of greed.”
Mr. Peace thanked the Federal Bureau of Investigation, New York Field Office, for its hard work and dedication in leading the investigation and expressed his appreciation to the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority, Inc., Criminal Prosecution Assistance Group (FINRA CPAG), for their cooperation and assistance.
From 2014 to 2016, Watts and others working with a Melville, New York-based boiler room artificially inflated the price and trading volume of Hydrocarb stock. They did so through an illegal cold call campaign that used lies and high-pressure sales tactics to lure victims, including the elderly and the vulnerable, into purchasing stock. Watts, who was one of the largest shareholders in Hydrocarb and therefore knew that the business was in a downward spiral, also used the boiler room to dump more than $2 million of Hydrocarb shares that he owned or controlled on unsuspecting investors in the months leading to the company’s April 2016 bankruptcy. The conspiracy’s market manipulation fraudulently inflated the stock price of Hydrocarb and four other companies by more than $147 million.
All 16 defendants charged in this case have been convicted. Among those who have been sentenced, Jeffrey Chartier, Ronald Hardy and Brian Heepke each received 10 years’ imprisonment; Dennis Verderosa received six years; Lawrence Isen received five years; McArthur Jean received four years; Paul Ewer received three years; and Emin Cohen received two years.
The government’s case is being prosecuted by Assistant United States Attorneys Whitman G.S. Knapp and Kaitlin T. Farrell with assistance from Paralegal Specialist Peyton Jefferson. Assistant United States Attorney Tanisha Payne of the Office’s Asset Recovery Section is handling forfeiture matters in the case.
The Defendant:
MICHAEL WATTS
Age: 68
Sugarland, TexasDocket No. 17-CR-372 (JS)
California Man Sentenced to 145 Months in Prison for Multi-Million Dollar Fraud and Money Laundering SchemesRead the Press Release
Earlier today in federal court in Brooklyn, Joseph Modile, a Nigerian national, was sentenced by United States District Judge Diane Gujarati to 145 months in prison for his participation in two separate schemes to defraud victim homeowners and a corporation and launder the proceeds of those frauds. In February 2023, Modile pleaded guilty to charges of conspiracy to commit bank fraud, wire fraud and aggravated identity theft that were filed in the Eastern District of New York, and to charges of money laundering and wire fraud that were filed in the Southern District of Texas and subsequently transferred to the Eastern District of New York. As part of the sentence, Modile was also ordered to pay more than $1.5 million in restitution and more than $1.5 million in forfeiture. Modile pleaded guilty to both charging documents in February 2023.
Breon Peace, United States Attorney for the Eastern District of New York, and Alamdar S. Hamdani, United States Attorney for the Southern District of Texas, Erin Keegan, Acting Special Agent-in-Charge, Homeland Security Investigations, New York (HSI), and Douglas Williams, Special Agent-in-Charge, Federal Bureau of Investigation, Houston Field Office (FBI), announced the sentence.
“Modile checked all the boxes for a sophisticated fraud–stealing, deception, money laundering and identity theft. Today’s sentence checks the box for an appropriate penalty for his crimes of greed from Brooklyn to Texas,” stated United States Attorney Peace. “I commend the prosecutors from my Office, the United States Attorney’s Office for the Southern District of Texas and the Special Agents for their outstanding work unraveling Modile’s scheme.”
Mr. Peace also expressed his thanks to the New York City Police Department which conducted this investigation as part of an enterprise Priority Transnational Organized Crime (PTOC) of the Organized Crime Drug Enforcement Task Forces (OCDETF), the FBI’s Boston Field Office, U.S. Postal Inspection Service, Department of State, Diplomatic Security Service, New York County District Attorney’s Office, the Houston Police Department, and the Harris County District Attorney’s Office for their substantial assistance.
“While Modile took part in a complicated scheme, involving a cadre of runners and a series of fake documents and bank accounts, his goal was simple - steal from unsuspecting victims,” stated United States Attorney Hamdani for the Southern District of Texas. “Although his crimes stretched to all parts, from Brooklyn to Houston, thanks to the work of two U.S. Attorney’s Offices, Modile will spend several years in one place, a prison cell, no longer able to help fellow criminals prey on the innocent.”
“Today’s sentencing is a positive step toward justice for Joseph Modile’s victims – homeowners, business owners, and the everyday email users alike who were defrauded of over $15 million as a result of his sophisticated schemes. The defendant spearheaded at least three fraud schemes across the country and over the course of several years. His tactics, while sophisticated, were no match for HSI New York’s El Dorado Task Force Cyber investigators,” stated HSI New York Acting Special Agent-in-Charge Keegan. “I commend HSI New York, the New York City Police Department, the U.S. Attorney’s Offices for the Eastern District of New York and the Southern District of Texas, as well as FBI Houston, for a job well done.”
“FBI Houston, along with our domestic and international law enforcement partners, led an OCDETF investigation on numerous prolific organized crime figures. Modile, for years, was an orchestrator of multi-million-dollar fraud schemes who stole from countless victims around the world,” stated FBI Special Agent-in-Charge Williams. “Dismantling largescale criminal enterprises is what the FBI does and Modile’s sentence should send a message to greedy criminals like him still out there, it’s just a matter of time before we get you too.”
In a scheme that was charged in the Eastern District of New York, from January 2014 and September 2018, Modile and others defrauded victims, businesses, and financial institutions in the United States through a sophisticated home equity line of credit (HELOC) scheme involving a series of bank account takeovers. During this time, Modile and others also laundered proceeds from the bank account takeovers. In furtherance of the HELOC fraud scheme, Modile and others acquired personal identifying information (PII) of the actual holders of the targeted bank accounts at the financial institutions. The co-conspirators then used the PII to impersonate the actual holders of the targeted bank accounts, thereby gaining control of the accounts. In some cases, members of the conspiracy recruited “runners,” who impersonated the actual account holders inside bank branches using forged and fraudulent identification documents created at the direction of Modile. In most instances, the stolen funds were first deposited into fraudulent bank accounts set up and controlled by co-conspirators in the names of
the actual victims from whom the money had been stolen. In other cases, the bank accounts into which the stolen funds were first deposited were in the names of sham corporations, which were opened using false and fraudulent identification. In total, Modile and others stole at least $5 million as part of the HELOC fraud scheme.In a related scheme charged in the Eastern District of New York, in May 2018, Modile and others engaged in a separate Business Email Compromise scheme, using fraudulent emails and telephone calls to steal approximately $10.2 million from a victim company. The coconspirators used a fraudulent email address to impersonate a contractor of an entity located in St. Paul, Minnesota, and directed representatives of that entity to deposit the funds in an account controlled by members of the conspiracy. Modile and others then laundered those stolen funds through bank accounts controlled by members of the conspiracy.
Finally, as set forth in the information filed in the Southern District of Texas, from November 2017 until May 2018, Modile knowingly devised a scheme to defraud victims.
Modile used his cellular phone to communicate with others about financial transactions for the purpose of executing his scheme. Modile directed an individual already convicted in Houston, Texas to withdraw cash from their bank account and provide it to others. Modile also directed the individual in Houston to lie to their financial institution regarding the reason for withdrawing money from their account. In February 2018, Modile orchestrated and directed a substantial amount of money into an account of the individual in Houston. The money derived from wire fraud and Modile was aware the money came from unlawful activity.This effort is part of an 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 Business and Securities Fraud Section. Assistant United States Attorney David Pitluck is in charge of the prosecution, with assistance from Paralegal Specialist William Daniels, along with Assistant United States Attorney Rodolfo Ramirez of the Southern District of Texas.
The Defendant:
JOSEPH MODILE
Age: 45
Los Angeles, CaliforniaE.D.N.Y. Docket Nos. 21-CR-108 and 23-CR-50 (DG)
Queens Man Convicted of Murdering and Dismembering Woman in Fraudulent Scheme to Collect Life Insurance BenefitsRead the Press Release
Today, a federal jury in Brooklyn returned a guilty verdict against Cory Martin on all counts of a superseding indictment charging him with murder-for-hire, murder-for-hire conspiracy, wire fraud conspiracy, aggravated identify theft and fraudulent use of identification relating to a scheme to fraudulently obtain life insurance policies in the name of a woman, murder her and collect the insurance proceeds. The verdict followed a two-week trial before United States District Judge Ann M. Donnelly. When sentenced, Martin faces a mandatory sentence of life imprisonment.
Breon Peace, United States Attorney for the Eastern District of New York, James Smith, 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 verdict.
“It is fitting that that Martin faces a mandatory sentence to spend the rest of his life in prison for this ghastly, cold-blooded crime that was motivated by greed and executed after extensive planning,” stated United States Attorney Peace. “Martin saw the victim as a moneymaker, trafficking her for commercial sex, then after killing her with his bare hands, tossing out her slaughtered body parts like trash so he could profit from her death. Brandy Odom suffered an unthinkable death at the defendant’s hands, but her life mattered and I hope that this verdict holding the defendant responsible brings some measure of closure to her family.”
“Today’s guilty verdict is a message to anyone who, without fear of being held accountable, commits heinous acts of criminality in New York City,” stated NYPD Commissioner Caban. “The NYPD will continue to collaborate with the FBI and the office of the U.S. Attorney for the Eastern District of New York to conduct meticulous investigations that lead to successful prosecutions, and ultimately deliver justice to victims.”
As proved at trial, Martin resided at a house in Rosedale, Queens, with the then-26-year-old victim, Brandy Odom, and a co-conspirator who were engaged in commercial sex work for the defendant who operated as their pimp. In March and December 2017, Martin and the co-conspirator fraudulently obtained two life insurance policies in Odom’s name. They made premium payments to the life insurance companies by Western Union money orders and by using a debit card in Odom’s name. At trial, Martin’s co-conspirator testified that prior to Odom’s murder, she and the defendant watched “The First 48,” a true-crime TV show about police tactics and they discussed “what not to do, and what things to do to avoid being caught by the police.” The co-conspirator testified that Martin also watched “Dexter,” a TV show about a serial killer who dismembered his victims, because the defendant was “looking for ways to commit the crime when he got rid of Brandy.”
In early April 2018, Martin strangled Odom in her bedroom. Martin and the co-conspirator then purchased cleaning supplies and a vacuum— to clean up the murder scene—at the Green Acres Mall on Long Island. On April 6, 2018, Martin searched Home Depot’s website for a “Dewalt 12-Amp Corded Reciprocating Saw,” described as featuring a “powerful 12 Amp motor designed for heavy-duty applications.” Later that evening, Martin searched YouTube for “how to insert blade for reciprocating saw” and “using reciprocating saw.” The co-conspirator testified that Martin used an electric saw to dismember the victim’s corpse in the bathtub after covering every surface in the bathroom with heavy-duty, black garbage bags to eliminate evidence of the killing.
In the early morning of April 8 and April 9, 2018, Martin disposed of Odom’s body parts in Canarsie Park with the assistance of his co-conspirator. On April 10, 2018, Martin conducted dozens of Internet searches for news articles, including “Search area expands after dismembered body found in Canarsie Park in Brooklyn.” Martin also accessed a Twitter post titled “Person walking dog discovers remains of woman in Brooklyn park.” The following day on April 11, 2018, Martin searched YouTube using the search term “exclusive interview of mother of girl found in park.” After Odom’s murder, at Martin’s direction, his co-conspirator made several unsuccessful attempts to claim benefits under Odom’s life insurance policies.
The government’s case is being handled by the Office’s Organized Crime and Gangs Section. Assistant United States Attorneys Tanya Hajjar, Emily Dean and Andy Palacio are in charge of the prosecution, with the assistance of Paralegal Specialist Theodore Rader.
The Defendant:
CORY MARTIN
Age: 36
Rosedale, QueensE.D.N.Y. Docket No. 20-CR-549(S-1) (AMD)
Long Island Man Sentenced to 18 Years in Prison for Armed Bank RobberyRead the Press Release
Earlier today, at the federal courthouse in Central Islip, Quincy Homere was sentenced by United States District Judge Gary R. Brown to 18 years in prison for his role as the mastermind of a November 9, 2015 armed takeover bank robbery of a Wells Fargo Bank branch in Hempstead, New York, which netted Homere and his co-conspirators more than $375,000 in proceeds. Homere pleaded guilty in December 2017 to armed bank robbery and brandishing a firearm during a crime of violence.
Breon Peace, United States Attorney for the Eastern District of New York, James Smith, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Patrick J. Ryder, Commissioner, Nassau County Police Department (NCPD), announced the sentence.“Homere has been held accountable for committing a violent bank robbery while brandishing an assault rifle, terrorizing the employees and customers, including an elderly woman and young child—actions that easily could have resulted in the loss of life either inside the bank or to the brave responding officers,” stated United States Attorney Peace. “Homere has now learned that the true payoff for robbing a bank is a long-term stay in prison.”
Mr. Peace thanked the Hempstead Police Department and the Suffolk County Police Department for their assistance on the case.
"The sentencing of defendant Quincy Homere for an armed robbery in Hempstead should set an example to anyone considering a similar crime that law enforcement and its partners will never stop and will continue with their investigations until the subject(s) are apprehended. Our communities are safer with defendant Homere incarcerated. Congratulations to all the dedicated investigators and their agencies for a job well done," stated NCPD Commissioner Ryder.
On November 9, 2015, following extensive planning, Homere and his co-conspirators, including Anael Sainfil, executed the robbery of a Wells Fargo Bank branch on Fulton Avenue in Hempstead, New York. Homere entered the bank brandishing an AK-47 rifle accompanied by three armed co-conspirators, while a fourth co-conspirator stood guard. An armed takeover of the bank ensued. Tellers and customers, including an 8-year-old boy, were zip-tied and held captive, as the bank’s vault was emptied of over $375,000. A fifth co-conspirator monitored encrypted NCPD police radio frequencies in an effort to facilitate the defendants’ escape.
Homere was unaware that a teller had placed a wireless GPS tracker with the stolen money. Hempstead Police Department officers initiated a chase of the getaway vehicle that ended with the arrest of one of the co-conspirators that day and recovery of most of the bank proceeds.
In November 2016, Homere was arrested in Miami, Florida following an investigation by the FBI, NCPD and SCPD.
Co-defendant Sainfil was arrested in December 2016 by members of the FBI and SCPD. In January 2018, Sainfil was convicted by a federal jury of conspiracy to commit armed bank robbery and brandishing firearms during a crime of violence. He was sentenced on February 26, 2020 to 219 months’ imprisonment for his role as a lookout in the robbery.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorneys Mark E. Misorek and Erin Reid are in charge of the prosecution.
The Defendant Sentenced Today:
QUINCY HOMERE
Age: 38
Hempstead, New YorkThe Defendant Previously Sentenced:
ANAEL SAINFIL
Age: 38
Bay Shore, New YorkE.D.N.Y. Docket No. 16-CR-652 (S-1) (GRB)
Le Défendeur Accusé Pour Une Escroquerie Ciblant La Ommunauté Haïtienne-Américaine A Été Condamné À Une Peine De 24 Mois De PrisonRead the Press Release
Plus tôt dans la journée, au palais de justice fédéral de Brooklyn, Frantz Simeon a été condamné par le juge de district américain Brian M. Cogan à 24 mois de prison pour avoir mis en place une escroquerie en utilisant sa société, First Black Enterprises, Inc. et cibler des membres de la communauté haïtienne-américaine de Brooklyn et du Queens. Dans le cadre de la sentence, Simeon a été condamné à payer plus de 200 000 $ de dédommagement. L'accusé a plaidé coupable de fraude postale en février 2023.
Breon Peace, procureur des États-Unis pour le district est de New York, et Daniel B. Brubaker, inspecteur en charge, Service d'inspection postale des États-Unis (USPIS), ont annoncé la sentence.
« Aujourd'hui, Frantz Simeon a mesuré les conséquences de l'exploitation de sa réputation de personne de confiance au sein de la communauté haïtienne-américaine », a déclaré le procureur des États-Unis Peace. « Siméon a attiré ses victimes avec de fausses promesses de retours sur investissements substantiels pour détourner les sommes à son propre bénéfice, jusqu'à ce que son stratagème s'effondre. Ce bureau poursuivra sans relâche les auteurs d’escroquerie par affinité et cette affaire est un signal fort pour ceux qui veulent investir, de se méfier des membres de leur propre communauté qui proposeraient des investissements trop beaux pour être vrais. »
« Les inspecteurs des postes se consacrent à enquêter sur les stratagèmes d’escroquerie de victimes innocentes tout en profitant du la poste officielle U.S. Mail. L'USPIS s'engage à protéger et à informer en permanence le public sur la manière d'éviter ce type de stratagèmes », a déclaré l'inspecteur Brubaker en charge de l'USPIS. « Simeon a ciblé des individus de sa propre communauté à son propre bénéfice financier. Si une opportunité apparait trop belle pour être vraie, c'est probablement le cas ! »
Entre février 2019 et décembre 2020, Simeon a orchestré une escroquerie dans lequel il a faussement vanté son expérience dans les affaires et son sens du commerce, incitant les investisseurs à investir avec lui sur la base de promesses prétendument sans risque et qui généreraient des rendements mensuels de 10 %. Simeon s'est spécifiquement adressé aux haïtiens-américains résidant à Brooklyn et dans le Queens, tirant parti de ses relations dans la communauté pour générer plus de 350 000 $ d'investissements liés à ses fausses assurances. Contrairement à ses promesses, Simeon n’a mené que peu ou pas d'activités commerciales ou d'investissement réels, utilisant l'argent des nouveaux investisseurs pour simuler les paiements des intérêts mensuels aux investisseurs précédents dans ce qu’on appelle communément une pyramide de Ponzi. Ces prétendus paiements d'intérêts étaient conçus pour dissimuler la fraude et drainer de nouveaux investissements, dont Siméon avait besoin pour poursuivre le stratagème. De plus, Simeon a détourné des milliers de dollars de fonds d'investisseurs à son profit personnel, y compris l'achat d'une voiture pour sa fille et des retraits en espèces de plus de 60 000 $. Les victimes de Simeon, qui étaient en grande partie des immigrants, ont finalement subi des pertes de plus de 200 000 $ à la suite de cette escroquerie.
Le cas poursuivi par le gouvernement est traité par la section des fraudes commerciales et aux valeurs mobilières du Bureau. Le procureur adjoint des États-Unis, Dylan A. Stern, est chargé des poursuites.
Le Défendeur:
Frantz Siméon
Âge: 67
Brooklyn, New YorkEDNY Numéro de dossier 21-CR-479 (BMC)
Gunvor S.A. Pleads Guilty to Scheme to Bribe Ecuadorian Officials and Ordered to Pay over $600 Million in Criminal PenaltiesRead the Press Release
Today, in federal court in Brooklyn, Gunvor S.A. (Gunvor), a part of the Gunvor Group, one of the largest commodities trading firms in the world, pleaded guilty to one count of conspiracy to violate the Foreign Corrupt Practices Act (FCPA). The charge arises out of a scheme to bribe officials of the Ecuadorian Ministry of Hydrocarbons and Petroecuador, the Ecuadorian state-owned oil company, in order to obtain contracts to purchase oil products. The proceeding was held before United States District Judge Eric N. Vitaliano. As part of the company’s sentence, Gunvor was ordered to pay a criminal penalty of approximately $661 million.
Breon Peace, United States Attorney for the Eastern District of New York, Brent S. Wible, Acting Senior Counselor 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 and sentence.
“Today’s guilty plea and sentencing marks yet another example of this office’s efforts to combat widespread corruption,” said U.S. Attorney Breon Peace for the Eastern District of New York. “Corruption erodes the public’s trust in their government, prevents government officials from acting in the best interests of the people they represent and harms businesses that play by the rules, driving up prices for consumers. The Justice Department, including my Office, will not tolerate bribes being paid by American companies or foreign companies misusing the U.S. financial system.”
“Over nearly a decade, Gunvor representatives bribed high-level government officials at Ecuador’s state-owned oil company to enter into business transactions with other state-owned entities that ultimately benefited Gunvor. As a result of this complex bribery scheme, Gunvor obtained hundreds of millions of dollars in illicit profits,” said Acting Senior Counselor Wible. “Foreign bribery emboldens corrupt officials and undermines the rule of law. Gunvor’s guilty plea demonstrates that the Criminal Division remains resolute in our efforts to root out bribery and official corruption. We will continue to hold both corporations and individuals who bribe foreign officials to account, in coordination with our international partners.”
“Gunvor’s years long bribery scheme involving high-level Ecuadoran officials was both detrimental to the business environment and eroded the public’s trust and confidence in their government,” stated FBI Special Agent-in-Charge Veltri. “This guilty plea and significant fine would not have been possible without significant cooperation from our international partners in the Cayman Islands, Colombia, Curacao, Ecuador, Panama, Portugal, Singapore, and Switzerland. This truly was an international effort.”
In connection with the resolution, Gunvor entered into a plea agreement with the government and pleaded guilty to an information charging the company with conspiracy to violate the anti-bribery provisions of the FCPA. Following the plea, Judge Vitaliano sentenced Gunvor to pay a criminal monetary penalty of more than $374 million and to forfeit more than $287 million in ill-gotten gains. The sentence includes credits of up to $93 million each for amounts Gunvor pays to resolve investigations by Swiss and Ecuadorian authorities into the same misconduct so long as the payments are made within 12 months of today’s date.
According to the company’s admissions and court documents, between 2012 and 2020, Gunvor and its co-conspirators paid more than $97 million to intermediaries understanding that some of the money would be and in fact was used to bribe numerous Ecuadorian officials, including Nilsen Arias, a then-high ranking official at Petroecuador. The bribe payments were routed through banks in the United States using shell companies in Panama and the British Virgin Islands controlled by Gunvor’s co-conspirators. A Gunvor employee directed one of the intermediaries to use the bribe money to purchase an 18-karat gold Patek Philippe wristwatch for Arias.
In exchange for these bribe payments, high-level Ecuadorian officials helped Gunvor win contracts to provide a series of oil-backed loans to Petroecuador. The oil-backed loans were made through other state-owned entities, which acted as “fronts” for Gunvor. Because the contracts were with other state-owned entities, Petroecuador rules did not require a competitive bidding process, allowing Gunvor and co-conspirators to obtain contracts it would not have been able to obtain directly. Gunvor also received confidential Petroecaudor information.
In total, Gunvor earned more than $384 million in profits from the business it corruptly obtained related to Petroecuador.
The department reached this resolution with Gunvor based on a number of factors including the nature and seriousness of the offense, which involved a multi-year scheme to bribe numerous senior Ecuadorian government officials in order to obtain lucrative business resulting in more than $384 million in profits to Gunvor; and that Gunvor has a history of misconduct. In October 2019, Gunvor reached a resolution with the Office of the Attorney General of Switzerland concerning a corrupt scheme to bribe officials in Congo-Brazzaville and Côte d’Ivoire to secure oil contracts. The conduct that is the subject of today’s guilty plea occurred, in part, at the same time as the prior Swiss investigation and resolution. Accordingly, taking into account these and other factors, including Gunvor’s cooperation and remediation, the total criminal penalty reflects a 25% reduction off the 30th percentile of the applicable U.S. sentencing guidelines fine range.
The department previously secured convictions in the Eastern District of New York of four individuals who were implicated in Gunvor’s bribery scheme, including:
- Antonio Pere Ycaza, a former consultant for Gunvor, pleaded guilty on Oct. 7, 2020, to one count of conspiracy to violate the FCPA and one count of conspiracy to commit money laundering.
- Enrique Pere Ycaza, a former consultant for Gunvor, also pleaded guilty on Oct. 7, 2020, to one count of conspiracy to commit money laundering and to violate the FCPA.
- Raymond Kohut, a former Gunvor employee and agent, pleaded guilty on April 6, 2021, to one count of conspiracy to commit money laundering.
- Nilsen Arias Sandoval, a former senior Petroecuador official, pleaded guilty on Jan. 19, 2022, to one count of conspiracy to commit money laundering.
The investigation was conducted by FBI Miami’s International Corruption Squad. 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 the Money Laundering and Asset Recovery Section (MLARS) Special Financial Investigations Unit. Assistant United States Attorneys Jonathan P. Lax, Nick M. Axelrod 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. Assistant United States Attorneys Laura Mantell and Brendan King of the Eastern District of New York’s Asset Recovery Section are handling forfeiture matters.
The Justice Department’s Office of International Affairs and authorities in the Cayman Islands, Colombia, Curacao, Ecuador, Panama Portugal, Singapore and Switzerland provided valuable assistance in this matter.
The Defendant:
GUNVOR S.A.
SwitzerlandE.D.N.Y. Docket No. 24-CR-85 (ENV)
Defendant Convicted of Fraudulent Scheme That Targeted the Haitian American Community Sentenced to 24 Months in PrisonRead the Press Release
Earlier today, at the federal courthouse in Brooklyn, Frantz Simeon was sentenced by United States District Judge Brian M. Cogan to 24 months in prison for his operation of a fraudulent scheme that used his company, First Black Enterprises, Inc., to target members of the Haitian American community in Brooklyn and Queens. As part of the sentence, Simeon was ordered to pay over $200,000 in restitution. The defendant pleaded guilty to mail fraud in February 2023.
Breon Peace, United States Attorney for the Eastern District of New York, and Daniel B. Brubaker, Inspector-in-Charge, United States Postal Inspection Service (USPIS), announced the sentence.
“Today, Frantz Simeon learned the consequences for exploiting his position of trust in the Haitian American community,” stated United States Attorney Peace. “Simeon lured his victims with false promises of substantial returns on investments so that he could fleece them for his own benefit, until his scheme collapsed. This Office will aggressively prosecute perpetrators of affinity fraud schemes, and this case alerts investors to be wary of community members touting investments that sound too good to be true.”
“Postal Inspectors are dedicated to investigating schemes designed to defraud innocent victims while taking advantage of the U.S. Mail. USPIS vows to continuously protect and educate the public on how to avoid these types of schemes,” stated USPIS Inspector-in-Charge Brubaker. “Simeon targeted individuals from his own community for his personal financial gain. If something sounds too good to be true, it probably is!”
Between February 2019 and December 2020, Simeon orchestrated a fraudulent scheme in which he falsely advertised his business experience and acumen, enticing investors to invest with him based on promises that their investments were risk-free and would generate 10% monthly returns. Simeon specifically preyed on Haitian Americans residing in Brooklyn and Queens, leveraging his relationships in the community to induce over $350,000 in investments with his false assurances. Contrary to his promises, Simeon conducted little or no actual business or investment activities, instead using the money from new investors to mail monthly interest payments to them and earlier investors in a Ponzi-like scheme. These purported interest payments were designed to conceal the fraud and to induce further investments, which Simeon needed to continue the scheme. In addition, Simeon misappropriated thousands of dollars of investor funds for his own personal benefit, including the purchase of a car for his daughter and making over $60,000 in cash withdrawals. Simeon’s victims, who were largely immigrants, ultimately sustained over $200,000 in losses as a result of the scheme.
The government’s case is being handled by the Office’s Business and Securities Fraud Section. Assistant United States Attorney Dylan A. Stern is in charge of the prosecution.
The Defendant:
Frantz Simeon
Age: 67
Brooklyn, New YorkE.D.N.Y. Docket No. 21-CR-479 (BMC)
Commodities Trading Company Will Pay over $661M to Resolve Foreign Bribery CaseRead the Press Release
Gunvor S.A. (Gunvor), an international commodities trading company based in Switzerland, has pleaded guilty and will pay over $661 million to resolve an investigation by the U.S. Justice Department into violations of the Foreign Corrupt Practices Act (FCPA).
Gunvor’s guilty plea stemmed from the company’s corrupt scheme to pay substantial bribes to Ecuadorean government officials to secure business with Ecuador’s state-owned and state-controlled oil company, Petroecuador.
In connection with the resolution, Gunvor entered into a plea agreement with the government and pleaded guilty to an information charging the company with conspiracy to violate the anti-bribery provisions of the FCPA. Following the plea, the court sentenced Gunvor to pay a criminal monetary penalty of $374,560,071 and to forfeit $287,138,444 in ill-gotten gains. The sentence includes credits of up to one-quarter of the criminal fine each for amounts Gunvor pays to resolve investigations by Swiss and Ecuadorean authorities into the same misconduct so long as the payments are made within one year of today’s date.
The Office of the Attorney General of Switzerland announced today a parallel resolution of its investigation into Gunvor’s misconduct that involved payment of approximately $98 million by Gunvor to Swiss authorities.
“Over nearly a decade, Gunvor representatives bribed high-level government officials at Ecuador’s state-owned oil company to enter into business transactions with other state-owned entities that ultimately benefited Gunvor. As a result of this complex bribery scheme, Gunvor obtained hundreds of millions of dollars in illicit profits,” said Acting Senior Counselor Brent S. Wible of the Justice Department’s Criminal Division. “Foreign bribery emboldens corrupt officials and undermines the rule of law. Gunvor’s guilty plea demonstrates that the Criminal Division remains resolute in our efforts to root out bribery and official corruption. We will continue to hold both corporations and individuals who bribe foreign officials to account, in coordination with our international partners.”
“Today’s guilty plea and sentencing marks yet another example of this office’s efforts to combat widespread corruption,” said U.S. Attorney Breon Peace for the Eastern District of New York. “Corruption erodes the public’s trust in their government, prevents government officials from acting in the best interests of the people they represent and harms businesses that play by the rules, driving up prices for consumers. The Justice Department, including my office, will not tolerate bribes being paid by American companies or foreign companies misusing the U.S. financial system.”
“Gunvor’s years-long bribery scheme involving high-level Ecuadoran officials was both detrimental to the business environment and eroded the public’s trust and confidence in their government,” said Special Agent in Charge Jeffrey B. Veltri of the FBI Miami Field Office. “This guilty plea and significant fine would not have been possible without significant cooperation from our international partners in the Cayman Islands, Colombia, Curacao, Ecuador, Panama, Portugal, Singapore, and Switzerland. This truly was an international effort.”
According to the company’s admissions and court documents, between 2012 and 2020, Gunvor and its co-conspirators paid more than $97 million to intermediaries knowing that some of the money would be and in fact was used to bribe Ecuadorean officials, including Nilsen Arias Sandoval, a then-high ranking official at Petroecuador. As part of the scheme, Gunvor managers and agents attended meetings in the United States and elsewhere. The bribe payments were routed through banks in the United States using shell companies in Panama and the British Virgin Islands controlled by Gunvor’s co-conspirators. Among other things, a Gunvor employee also directed one of the intermediaries to use the money to purchase an 18-karat gold Patek Philippe watch for Arias.
In exchange for these bribe payments, high-level Ecuadorian officials helped various state-owned entities, which were acting as front companies for Gunvor, win the rights to a series of oil-backed loan contracts with Petroecuador. This structure allowed Gunvor and its co-conspirators to avoid a competitive bidding process and to obtain contractual terms that it could not have obtained otherwise. Gunvor also received confidential Petroecuador information in exchange for the bribes. In total, Gunvor earned more than $384 million in profits from the contracts it obtained corruptly from Petroecuador.
The department reached this resolution with Gunvor based on a number of factors, including, among others, the nature and seriousness of the offense. Gunvor received credit for its cooperation with the department’s investigation, which included: (i) producing documents to the department from multiple foreign countries expeditiously while navigating foreign data privacy and criminal laws; (ii) providing information obtained through its own internal investigation to the department, which allowed the department to preserve and obtain evidence as part of the department’s investigation; (iii) making detailed, factual presentations to the department; (iv) arranging for the interview of an employee based outside the United States; (v) promptly collecting, analyzing, and organizing voluminous information, including complex financial information, at the request of the department, and producing an analysis of trading activity conducted by multiple outside forensic accounting firms retained by Gunvor; (vi) translating foreign language documents to facilitate and expedite review by the department; and (vii) imaging the phones of relevant custodians at the beginning of Gunvor’s internal investigation, thus preserving business communications sent on mobile messaging applications.
Gunvor also engaged in timely and appropriate remedial measures, including: (i) eliminating the use of third-party business origination agents; (ii) enhancing its third party due-diligence process; (iii) developing and implementing a control framework for internal business developers and additional layers of review and approval for counterparty payments; (iv) enhancing the independent compliance committee with responsibility for reviewing high-risk transactions; (v) engaging resources to review its compliance program and test the effectiveness of its overall reporting process, its reporting hotline and the effectiveness of the investigation of reports made through the hotline; (vi) evaluating and updating its compensation policy to better incentivize compliance with the law and corporate policies; (vii) hiring additional compliance personnel; (viii) testing and enhancing its compliance program, including by conducting compliance culture reviews, testing new third party due diligence process and payment controls, and evaluating controls around business development activities; and (ix) developing and implementing a risk-based business communications policy that addresses the use of ephemeral and encrypted messaging applications.
The department also considered Gunvor’s history of misconduct. In October 2019, Gunvor reached a resolution with the Office of the Attorney General of Switzerland concerning a corrupt scheme to bribe officials in Congo-Brazzaville and Côte d’Ivoire to secure oil contracts obtained between approximately 2009 and 2012. As part of the 2019 Swiss resolution, Gunvor admitted that it lacked sufficient controls to prevent the underlying misconduct and failed to take “all the reasonable organizational measures” required to prevent Gunvor’s employees and agents from engaging in bribery. The conduct that is the subject of today’s guilty plea occurred, in part, at the same time as the prior Swiss investigation and resolution.
In light of these considerations, the department determined that the appropriate resolution in this case was for Gunvor to plead guilty to one count of conspiracy to violate the FCPA. The criminal fine calculated under the U.S. Sentencing Guidelines reflects a 25% reduction off the 30th percentile of the applicable guidelines fine range, taking into account Gunvor’s cooperation and remediation, as well as its prior history.
The department previously secured convictions in the Eastern District of New York of four individuals who were implicated in Gunvor’s bribery scheme, including:
- Antonio Pere Ycaza, a former consultant for Gunvor, pleaded guilty on Oct. 7, 2020, to one count of conspiracy to violate the FCPA and one count of conspiracy to commit money laundering.
- Enrique Pere Ycaza, a former consultant for Gunvor, also pleaded guilty on Oct. 7, 2020, to one count of conspiracy to commit money laundering and to violate the FCPA.
- Raymond Kohut, a former Gunvor employee and agent, pleaded guilty on April 6, 2021, to one count of conspiracy to commit money laundering.
- Nilsen Arias Sandoval, a former senior Petroecuador official, pleaded guilty on Jan. 19, 2022, to one count of conspiracy to commit money laundering.
The FBI Miami Field Office is investigating the case, with assistance from the FBI’s International Corruption Unit.
Trial Attorney Clayton P. Solomon and Assistant Chiefs Derek J. Ettinger and Jonathan P. Robell of the Criminal Division’s Fraud Section, Trial Attorney D. Hunter Smith and Deputy Chief Adam J. Schwartz of the Criminal Division’s Money Laundering and Asset Recovery Section, and Assistant U.S. Attorneys Nick M. Axelrod, Jonathan P. Lax, and Matthew R. Galeotti for the Eastern District of New York are prosecuting the case. Assistant U.S. Attorneys Laura Mantell and Brendan King for the Eastern District of New York are handling forfeiture matters.
The Justice Department’s Office of International Affairs and authorities in the Cayman Islands, Colombia, Ecuador, Panama, Portugal, Singapore, and Switzerland provided valuable assistance.
The Criminal Division’s Fraud Section is responsible for investigating and prosecuting FCPA matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
The Kleptocracy Asset Recovery Initiative is led by a team of dedicated prosecutors in the Criminal Division’s Money Laundering and Asset Recovery Section, in partnership with federal law enforcement agencies, and often with U.S. Attorneys’ Offices, to forfeit the proceeds of foreign official corruption and, where appropriate, to use those recovered assets to benefit the people harmed by these acts of corruption and abuse of office.
Information Plea AgreementFive Defendants Arrested for Engaging in Sophisticated ATM Skimming Schemes Involving Theft of Account Information and PIN Numbers from Unsuspecting Bank CustomersRead the Press Release
Earlier today, at the federal courthouse in Brooklyn, an indictment charging defendants with fraud and aggravated identity theft for various ATM skimming-related crimes perpetrated between May 2022 and February 2023, was partially unsealed. To execute the fraud, the defendants allegedly installed devices and cameras on ATMs, capturing victim account information and personal identification numbers (PINs). The defendants then transferred data obtained by those devices onto counterfeit debit cards, which the defendants used to make purchases and withdraw cash. As a result, the defendants compromised over 600 victim accounts and stole thousands of dollars.
Five defendants were arrested earlier this morning in New York, and are scheduled to be arraigned this afternoon before United States Magistrate Judge Vera M. Scanlon at the federal courthouse in Brooklyn.
Breon Peace, United States Attorney for the Eastern District of New York, James Smith, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI) and Patrick Freaney, Special Agent-in-Charge, United States Secret Service (USSS), New York Field Office and Edward A. Caban, Commissioner, New York City Police Department (NYPD) announced the charges.
“As alleged, the defendants engaged in a sophisticated scheme by installing cameras and devices in ATM card slots to surreptitiously steal victim bank account information and use that stolen information to cash out for their own personal gain,” stated United States Attorney Peace. “The arrests today demonstrate that this Office will continue to investigate and prosecute fraudulent activity compromising victims’ financial safety and security.”
“The five defendants allegedly illegally obtained financial information using hidden devices implanted in ATMs to create counterfeit debit cards and steal thousands of dollars from over 600 unsuspecting victims. The defendants' concerted efforts to conceal this fraudulent activity allowed the scam to plague the community for almost a year, highlighting the pervasive nature of criminal financial schemes. The FBI will continue to aggressively investigate all methods of fraud to protect financial privacy,” stated FBI Assistant Director-in-Charge Smith.
“The defendants allegedly targeted hundreds of victims, exploiting their trust in routine elements of our financial systems and stealing thousands from their hard-earned savings,” said Patrick J. Freaney, Special Agent in Charge of the U.S. Secret Service’s New York Field Office. “The success of this investigation is a testament to our strong partnerships with both federal and local law enforcement, and the U.S. Secret Service remains committed to pursuing justice for victims of financial crimes here in New York and across the country.” “Today’s indictment underscores the importance of investigators from multiple law enforcement agencies working together to protect the financial well-being of good, hardworking New Yorkers,” said NYPD Commissioner Edward A. Caban. “I commend our partners at the FBI, the Secret Service, and the office of the U.S. Attorney for the Eastern District of New York for their dedication to our shared public safety mission.”
As set forth in the indictment and other filings, the defendants committed these crimes in two phases, installations and removals, and “cash-outs.” In the first phase, the defendants installed deep-insert skimming devices in the ATMs, which are thin devices the defendants implanted in ATM card slots. These sophisticated devices captured and stored data from debit cards used by unsuspecting victims who conducted transactions at the ATMs while the skimming device was implanted. The defendants simultaneously installed hidden cameras to record victims inputting their PINs. After recovering the cameras and skimming devices, the defendants used the data captured by the skimming devices to create counterfeit debit cards. In the second phase, the defendants then used the counterfeit debit cards and the corresponding PINs, which were captured by the hidden cameras, to “cash out,” or make purchases and withdraw cash. From these skimming and “cash out” crimes, the defendants appropriated account information from over 600 unsuspecting victims.
Users of ATMs are cautioned that advanced skimming devices and pinhole cameras installed on ATMs, like those used by the defendants, may be well disguised and undetected by the ATM user. Law enforcement agents encourage ATM users to shield the ATM keypad when entering PINs and other user information to prevent their accounts from being compromised.
The charges in the indictment are allegations, and the defendants are presumed innocent unless and until proven guilty.
Assistant United States Attorneys Irisa Chen and Raffaela Belizaire are in charge of the prosecution. The investigation is being conducted by the FBI, USSS and NYPD.
The Defendants:
IOAN-ANTON GHERASIM, also known as “Ryan Anthony”
Age: 38
Queens, New YorkELVIS DAN ATOMEI
Age: 34
Queens, New YorkDAN ADRIAN AGAFITEI, also known as “Federico Cousa,” “Luciano Manzatti” and “Coval Tiago”
Age: 25
Queens, New YorkBOBI BORCEA, also known as “Bobi Agafitei”
Age: 49
Queens, New YorkRAZVAN VICOL, also known as “Razvan Neagu,” “Geoffrey Pasek” and “Ruben Robles de la Torre”
Age: 36
Queens, New YorkE.D.N.Y. Docket No. 24-CR-78 (MKB)
Former NYPD Officer-Turned Forex Investor Indicted for Conspiracy to Commit Wire FraudRead the Press Release
An indictment was unsealed today in federal court in Brooklyn charging Jason Rodriguez with conspiracy to commit wire fraud. The indictment relates to Rodriguez’s role as the Chief Operating Officer of Technical Trading Team, LLC (Technical Trading Team), a foreign exchange-focused (forex) investment fund he founded in 2020. Rodriguez was arrested this morning and his initial appearance is scheduled for this afternoon before United States Magistrate Judge Cheryl L. Pollak.
Breon Peace, United States Attorney for the Eastern District of New York; James Smith, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced arrest and indictment.
“As alleged, the victims trusted Rodriguez with millions of dollars for what they were assured would be safe investments, supported by the defendant’s claim that he had quit the NYPD because he had become so successful at trading, which was untrue,” stated United States Attorney Peace. “Rodriguez also falsely promised the victims that their investments would be safe because there would be guardrails over his trading activity to limit the risks. In reality, Rodriguez ignored those guardrails and lost millions in investor funds and also misappropriated hundreds of thousands of dollars which he used to pay for luxury car rentals, travel and other personal expenses.”
“Jason Rodriguez falsely represented his time as an NYPD officer to earn the trust of prospective investors, to whom he then made alleged false promises that cost his victims millions of dollars. He withheld the reality of his failed trades and used the investment funds on his personal desires. The FBI will hold accountable anyone who manipulates others, especially for financial gain in the criminal justice system,” stated FBI Assistant Director-in-Charge Smith.
According to the indictment, Rodriguez founded Technical Trading Team in April 2020. Rodriguez pitched the fund as a forex-focused investment fund, with Rodriguez, who served as Chief Operating Officer, in charge of all trading. Rodriguez promised investors that Technical Trading Team would have a “loss reserve account” that could be used to repay investors if the company lost money trading, that Rodriguez would never risk more than 1% of assets under management on any single trade and would not hold positions open overnight. Each of these promises was meant to assure investors that their investment would be safe. Rodriguez and Technical Trading Team broke all of these promises and as Rodriguez lost more and more money in the forex markets, he used new investor money to pay older investors promised investment returns.
Prior to founding Technical Trading Team, Rodriguez served as an NYPD officer for approximately seven years. During the solicitation process, Rodriguez told prospective Technical Trading Team investors that he had quit the NYPD because he had become so successful at forex trading. The Technical Trading Team presentation similarly represented that Rodriguez’s “zealous ambition for trading took precedence resulting in the end of his law enforcement career . . .” Rodriguez failed to disclose that he resigned from the NYPD after pleading guilty to a misdemeanor crime and incurring a number of disciplinary infractions.
To date, of the approximately $4.8 million in investor funds wired to accounts controlled by Rodriguez between April 2020 and September 2022, approximately $3.5 million has never been paid back to the investors.
The charges in the complaint are allegations, and the defendant is presumed innocent unless and until proven guilty. If convicted, the defendant faces up to 20 years’ imprisonment.
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. Assistant United States Attorney Benjamin Weintraub is in charge of the prosecution.
The Defendant:
JASON RODRIGUEZ
Age: 37
Bellerose, QueensE.D.N.Y. Docket No. 24-CR-79
Colombo Crime Family Captain Sentenced to 51 Months for Long-Running Labor Union Extortion and Other SchemesRead the Press Release
Earlier today, Vincent Ricciardo, also known as “Vinny Unions,” was sentenced to 51 months in prison, $350,000 in forfeiture and $280,890 in restitution by United States District Judge Hector Gonzalez at the federal courthouse in Brooklyn, New York, for his participation in the long-running extortion of a senior official of a Queens-based labor union (the “Labor Union”) and other criminal schemes he carried out as a captain in the Colombo crime family of La Cosa Nostra. Ricciardo pled guilty to racketeering in July 2023, and admitted to his participation in the extortion of the Labor Union and various conspiracies to commit money laundering, loansharking and fraud in connection with workplace safety certificates.
Vincent Ricciardo is the tenth defendant sentenced in the case for conduct in connection with the scheme to infiltrate and divert funds from the Labor Union and other schemes. Four defendants still await sentencing.
Breon Peace, United States Attorney for the Eastern District of New York and James Smith, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI) announced the sentence.
“This prosecution represents our continued commitment to combatting organized crime and prosecuting the individuals who seek to enrich themselves at the expense of hardworking union members and their employers,” stated United States Attorney Peace. “Today’s sentence holds Vincent Ricciardo accountable for his long-running extortion scheme, as well as for his yearslong participation in the wide range of crimes committed by the Colombo crime family.”
Mr. Peace expressed his appreciation to the New York City Police Department, the Nassau County District Attorney’s Office, the Nassau County Police Department, the New York City Department of Investigation, the U.S. Department of Labor, and the Department of Justice’s Organized Crime and Gang Section for their valuable assistance in the investigation.
As set forth in court filings and facts presented during the sentencing proceedings, Vincent Ricciardo and his co-conspirators committed a variety of crimes – including extortion, loansharking, fraud and drug-trafficking – to enrich themselves and to promote the continued operation of the Colombo crime family. The Colombo crime family’s administration, including then-boss Andrew Russo (who passed away during the pendency of the case), underboss Benjamin “Benji” Castellazzo and consigliere Ralph DiMatteo, as well as captains Theodore Persico, Jr. and Richard Ferrara, and solider Michael Uvino, agreed to use extortionate means, including threats of bodily harm, to force the senior union official to give over a portion of his salary and ultimately to make decisions that would financially benefit the Colombo crime family’s administration. This included pressure from the defendants to force the trustees of the Labor Union’s associated healthcare benefit fund (the “Health Fund”) to select vendors who were associated with the Colombo crime family and handpicked by some of the defendants. Among other goals, the crime family’s administration sought to divert more than $10,000 per month from the Health Fund’s assets to themselves.
In one consensually recorded conversation, Vincent Ricciardo threatened to kill the senior union official, stating that the senior union official would continue to obey him because he knew Ricciardo would “put him in the ground right in front of his wife and kids, right in front of his fucking house, you laugh all you want pal, I’m not afraid to go to jail, let me tell you something, to prove a point? I would f*****g shoot him right in front of his wife and kids, call the police, f**k it, let me go, how long you think I’m gonna last anyway?”
In addition, Ricciardo and fellow Colombo crime family members Castellazzo, DiMatteo, Persico, Ferrara and Uvino joined with others — co-defendants Albert Alimena, Erin Thompkins and Joseph Bellantoni — who assisted other labor unions and health funds to devise a scheme to launder money from Health Fund contracts and vendor payments. These defendants attempted to re-bid Health Fund vendor contracts for claims administration, pharmaceuticals and other health services to persons and companies affiliated with Bellantoni, and to select a company run by Alimena as the Health Fund’s third-party administrator.
Vincent Ricciardo also worked with Bonanno crime family solider John Ragano, who was also known as “Bazoo” and the “Maniac,” in a scheme to issue fraudulent workplace safety training certifications from two occupational safety schools Ragano purported to operate in Long Island. Rather than provide workplace safety trainings required to obtain Occupational Safety and Health Administration certification, Ragano, along with John Glover and Domenick Ricciardo, falsified paperwork submitted to the U.S. Department of Labor and other government agencies which represented that hundreds of workers had completed construction safety training courses when they had not. Vincent Ricciardo plotted to funnel various Union workers to Ragano’s schools for fraudulent certifications and used the facilities to conduct meetings involving members of La Cosa Nostra.
Nine defendants were previously sentenced. Persico, Jr., who the government alleged was slated to be the family’s next crime boss, pled guilty to racketeering and was sentenced to 60 months’ imprisonment and restitution in the amount of $280,890. Underboss Castellazzo pled guilty to money laundering conspiracy and was sentenced to 15 months’ imprisonment. Consigliere DiMatteo pled guilty to racketeering and was sentenced to 36 months’ imprisonment and restitution in the amount of $280,890. Solider Michael Uvino pled guilty to racketeering and was sentenced to 41 months’ imprisonment, forfeiture of $66,000 and restitution in the amount of $280,890. Associate Domenick Ricciardo pled guilty to racketeering and was sentenced to 28 months’ imprisonment, forfeiture of $25,000 and restitution in the amount of $280,890. Alimena and Bellantoni pled guilty to health care fraud conspiracy and received two years’ probation and fines of $20,000 each. Ragano was sentenced to 57 months’ custody, as well as forfeiture of $500,000. Four defendants await sentencing, including Colombo crime family captain Richard Ferrara and associate Thomas Costa.
The government’s case is being handled by the Office’s Organized Crime and Gangs Section. Assistant United States Attorneys Devon Lash, Michael W. Gibaldi and Andrew Reich are in charge of the prosecution.
The Defendant:
VINCENT RICCIARDO (also known as “Vinny Unions”)
Age: 77
Franklin Square, New YorkOther Defendants:
ALBERT ALIMENA
Age: 69
Pompano Beach, FloridaJOSEPH BELLANTONI
Age: 41
Massapequa, New YorkBENJAMIN CASTELLAZZO (also known as “Benji”)
Age: 85
Manahawkin, New JerseyTHOMAS COSTA
Age: 54
West Islip, New YorkRALPH DIMATTEO
Age: 68
Merrick, New YorkRICHARD FERRARA
Age: 61
Brooklyn, New YorkJOHN GLOVER
Age: 64
Queens, New YorkVINCENT MARTINO
Age: 45
Medford, New YorkTHEODORE PERSICO, JR. (also known as “Teddy”)
Age: 59
Brooklyn, New YorkJOHN RAGANO (also known as “Bazoo” and the “Maniac”)
Age: 61
Franklin Square, New YorkDOMENICK RICCIARDO
Age: 57
Franklin Square, New YorkERIN THOMPKINS
Age: 55
Franklin Square, New YorkMICHAEL UVINO
Age: 57
Garden City, New YorkE.D.N.Y. Docket No. 21-CR-466 (S-1) (HG)
Two Queens Men Convicted of Drug-Related Murder of Run-DMC D.J. Jason Mizell, Also Known as "Jam Master Jay"Read the Press Release
Today, a federal jury in Brooklyn returned a guilty verdict against Karl Jordan, Jr., and Ronald Washington for the October 30, 2002, murder of Jason Mizell, also known as “Jam Master Jay,” a member of the famed hip hop group Run-DMC. Both defendants were charged with murder while engaged in a narcotics trafficking conspiracy and firearm-related murder for the fatal shooting of Mizell inside the victim’s recording studio in Hollis, Queens. The verdict followed a four-week trial before United States District Judge LaShann DeArcy Hall. When sentenced, Jordan and Washington face a minimum of 20 years’ imprisonment and a maximum term of life imprisonment.
Breon Peace, United States Attorney for the Eastern District of New York, Edward A. Caban, Commissioner, New York City Police Department (NYPD), John B. DeVito, Special Agent-in-Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) announced the verdict.
“More than two decades after they killed Jason Mizell in his recording studio, Jordan and Washington have finally been held accountable for their cold-blooded crime driven by greed and revenge,” stated United States Attorney Peace. “That the victim, professionally known as Jam Master Jay, was a hip hop icon and Run-DMC’s music was born in Hollis, Queens, in this very district, and beloved by so many, adds to the tragedy of a life senselessly cut short. I thank the jurors for their service, and I commend our prosecutors, the NYPD detectives, both active and retired, and the Special Agents and investigators from the ATF and my office, for their relentless pursuit of justice for the victim, his family, and the community.”Mr. Peace also expressed his thanks to the NYPD Intelligence Division, Suffolk County District Attorney’s Office, Queens County District Attorney’s Office, and Dominican Republic National Police for their assistance.
“Today’s guilty verdicts provides proof that the passage of time provides no safe harbor to those who commit murder. For us in ATF, our memory is long, and our resolve is steadfast. We have no tolerance for those who would take a life, and we are committed to seeing justice done. We thank our partners who are a part of ATF NY Joint Firearms Task Force -Long Island, NYPD, U.S. Marshals and the U.S. Attorney’s Office of Eastern District of NY who share the same commitment and resolve. We offer our hope to the family, friends, and fans of Jason Mizell that today’s verdict gives some closure,” stated ATF Special Agent-in-Charge DeVito.
“In every homicide investigation, NYPD detectives are meticulous, patient, and tireless in their efforts to help secure guilty verdicts like these rendered today,” stated NYPD Commissioner Edward A. Caban. “A cold case is never a forgotten case. In the decades since Mr. Mizell was brutally murdered, the greatest detectives in the world followed every lead until arrests could be made, and a solid case could be brought to our partners in the office of the U.S. Attorney for the Eastern District of New York. Mr. Mizell’s loved ones – who long-expected and deserved justice to be delivered – were patient, too, and we hope the jury’s decisions today advance a small measure of closure.”
As proven at trial, between the 1990s and 2002, separate from his music career, Mizell was involved in arranging for the sale of kilogram-quantities of cocaine in the Eastern District of New York and elsewhere. In August 2002, Mizell acquired approximately 10 kilograms of cocaine on consignment from a supplier based in California. The cocaine was intended to be distributed in Maryland by Washington, Jordan and other co-conspirators. A dispute between Washington and one of the co-conspirators in Baltimore resulted in Mizell cutting Washington and Jordan out of the Maryland drug deal worth almost $200,000. Following this betrayal, Washington and Jordan continued in the larger narcotics conspiracy until they could ultimately cut out Jason Mizell by murdering him on October 30, 2002.
On Wednesday, October 30, 2002, Mizell was present at his recording studio, “24/7,” located on Merrick Boulevard in Jamaica, Queens, playing a video game with a friend and reviewing paperwork with his business manager. At approximately 7:30 p.m., the defendants’ co-conspirator opened a locked fire escape exit door allowing Washington and Jordan to enter the building without being seen by Mizell. Jordan, who was the victim’s godson, and Washington went upstairs to the recording studio where Jordan greeted Mizell, who was sitting on the couch and initially appeared happy to see him. Things turned quickly, with Jordan pointing a gun at Mizell and firing two shots at close range. One shot hit Mizell in the head, killing him instantly. The second shot struck Mizell’s friend in the leg. Mizell’s business manager tried to flee and was met by Washington, who pointed a gun at her face and demanded that she lay on the floor. The three defendants fled the scene. The defendants variously made admissions to associates implicating themselves in the fatal shooting or bragging about being the shooter. For example, a witness who lived in a residence owned by Jordan’s father, testified that he overheard Jordan say that if Mizell “were still alive he would kill him again.” Washington’s former girlfriend testified that several days after the murder, he admitted killing Mizell. Additionally at trial, Jordan was identified as the shooter by the individual who was shot in the leg, and Mizell’s business manager identified Washington as being present in the recording studio during the murder and pointing a firearm at her and ordering her to get down on the floor.
The co-conspirator who allowed the defendants to enter through the fire escape door will be tried separately for his role in Mizell’s murder in January 2026 and remains innocent until proven guilty. Jordan is also charged with conspiracy to distribute cocaine and cocaine distribution and will be tried on those counts at a later date.
Assistant United States Attorneys Artie McConnell, Mark E. Misorek and Miranda Gonzalez are in charge of the prosecution with the assistance of Paralegal Specialists Anna November and Samantha Schroder.
The Defendants:
KARL JORDAN, JR. (also known as “Little D” and “Noid”)
Age: 40
Hollis, QueensRONALD WASHINGTON (also known as “Tinard”)
Age: 59
Hollis, QueensE.D.N.Y. Docket No. 20-CR-305 (LDH)
Two Defendants Charged with Stealing or Misusing $20 Million in Supplemental Nutrition Assistance Program BenefitsRead the Press Release
Earlier today, at the federal courthouse in Brooklyn, an indictment was unsealed charging Dawood Kassim and Dia Alqalisi with trafficking and stealing millions of dollars in benefits from the Supplemental Nutrition Assistance Program (SNAP), formerly known as the Food Stamp Program. To carry out the fraud, the defendants allegedly engaged in thousands of SNAP transactions out of a bodega in the Bedford-Stuyvesant neighborhood in Brooklyn which Kassim owned. The defendants were arrested this morning and are scheduled to be arraigned this afternoon before United States Magistrate Judge Cheryl L. Pollak. One defendant charged in the indictment remains at large.
Breon Peace, United States Attorney for the Eastern District of New York, Erin Keegan, Acting Special Agent-in-Charge, Homeland Security Investigations (HSI) and Charmeka Parker, Acting Special Agent-in-Charge, United States Department of Agriculture, Office of Inspector General, Northeast Region (USDA-OIG), announced the charges.
“As alleged, the defendants trafficked and stole a massive amount of SNAP benefits from thousands of victims, illegally profiting from federally funded benefits intended for those in need of nutritious meals—which is especially vital in these times of high food costs,” stated United States Attorney Peace. “The arrests today should be a wakeup call to those who think government programs are a piggy bank they can pillage without fear of consequences.”
“The defendants are accused of robbing the food stamps program of millions of dollars intended to assist the well-meaning public in feeding their families. Through this Brooklyn corner store, they allegedly defrauded unsuspecting food stamp recipients in several states across the country, and to the tune of $20 million," said HSI New York Acting Special Agent in Charge Erin Keegan. "I commend HSI New York’s El Dorado Task Force and our law enforcement partners for their outstanding coordination in ensuring these vital benefits go to those who truly need them.”
According to the indictment and court filings, SNAP is administered by the USDA’s Food and Nutrition Service and utilizes federal tax dollars to subsidize low-income households, affording such households the opportunity to achieve a more nutritious diet by increasing their food purchasing power. Individuals who receive SNAP benefits no longer redeem their benefits using paper food stamp coupons but use what is known as an Electronic Benefit Transfer (EBT) card. Using EBT cards, recipients can make authorized purchases, and the total amount of the purchase is electronically deducted from the recipient’s card balance. The same amount of the transaction is electronically transferred to the retailer’s designated bank account, using federal funds that originate from the USDA.
From April 2022 through December 2022, the defendants allegedly conducted fraudulent SNAP transactions out of Throop Farm Market, a bodega located at the corner of Throop and Greene Avenues in Bedford-Stuyvesant. First, the defendants engaged in trafficking SNAP benefits by allowing SNAP recipients to exchange SNAP benefits for cash or non-SNAP eligible goods, such as beer, with the defendants keeping a portion of the benefits for themselves as payment. Second, Kassim stole SNAP benefits from unsuspecting victims by using counterfeit and stolen SNAP EBT cards at Throop Farm Market. The victims of the defendants’ crimes included recipients of SNAP benefits residing in Tennessee, Virginia and California, among other states. Through these transactions, the defendants received over $20 million dollars in federally funded SNAP benefits, including over $7 million dollars’ worth of SNAP benefits from accounts of recipients living outside of New York.
The charges in the indictment are allegations, and the defendants are presumed innocent unless and until proven guilty.
Assistant United States Attorney Irisa Chen is in charge of the prosecution. The investigation is being conducted by HSI’s El Dorado Task Force in New York together with the USDA-OIG.
Law enforcement agents have identified numerous recipients of SNAP benefits whose benefits were stolen by the defendants. If any SNAP benefit recipients believe their benefits were stolen and used at Throop Farm Market or other businesses, they should contact the USDA-OIG at https://usdaoig.oversight.gov/resources/hotline-information or 1-800-424-9121.
The Defendants:
DAWOOD KASSIM (also known as “Badr al din Kassim”)
Age: 31
Brooklyn, New YorkDIA ALQALISI (also known as “Diaaldeen Alqalisi”)
Age: 26
Brooklyn, New YorkE.D.N.Y. Docket No. 24-CR-67 (KAM)
Oil and Gas Trader Convicted for Role in Foreign Bribery and Money Laundering SchemeRead the Press Release
A federal jury in Brooklyn convicted an oil and gas trader today for his role in a scheme to bribe Ecuadorean and Mexican government officials and to launder money to secure contracts worth hundreds of millions of dollars for his then-employer, Vitol Inc. (Vitol), the U.S. affiliate of the largest independent energy trading firm in the world.
According to court documents and evidence presented at trial, Javier Aguilar, 49, of Houston, paid more than $1 million in bribes to officials of Petroecuador, the Ecuadorean state-owned oil and gas company, and PEMEX Procurement International (PPI), a subsidiary of PEMEX, the Mexican state-owned oil and gas company, to obtain lucrative contracts for Vitol.
“Javier Aguilar bribed officials at state-owned oil and gas companies in Ecuador and Mexico using shell companies and sham invoices to obtain business for Vitol Inc., where he worked as an oil and gas trader,” said Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division. “With today’s verdict, the jury has held him accountable for his role in a sophisticated bribery and money laundering scheme that netted Vitol hundreds of millions of dollars in contracts. Foreign bribery erodes the rule of law, disadvantages honest companies, and emboldens corrupt government officials. The Criminal Division will continue to vigorously pursue wrongdoers who bribe foreign officials and bring them to justice.”
“Today’s verdict represents another victory in this office’s commitment to rooting out corruption in the international marketplace,” said U.S. Attorney Breon Peace for the Eastern District of New York. “The defendant and his co-conspirators sought to enrich themselves through criminal backroom deals. The people of Ecuador and Mexico deserved better and companies that play by the rules should know that the process is not rigged. The Justice Department and my office will continue to prioritize holding to account individuals who enrich themselves through bribery.”
“As demonstrated by this case, the Foreign Corrupt Practices Act has a long reach,” said Special Agent in Charge Jeffrey B. Veltri of the FBI Miami Field Office. “Aguilar’s egregious attempt to get away with bribing officials in Ecuador and Mexico failed, and he will now face tough penalties. I want to commend our partners in the Justice Department’s Criminal Division and at the U.S. Attorney’s Office for the Eastern District of New York for their close cooperation on this case.”
The trial evidence showed that, between 2015 and 2020, Aguilar was a trader in Vitol’s Houston office. As a part of the scheme, Aguilar and his co-conspirators agreed to bribe senior Ecuadorian officials to obtain a $300 million contract to purchase fuel oil for Vitol. Aguilar and his co-conspirators used another Middle Eastern state-owned entity to circumvent Petroecuador’s restrictions on contracts with private companies. In return for the promise and payments of bribes, the Ecuadorian officials then ensured that the Middle Eastern state-owned entity and Vitol were awarded the contract. Following the 2017 Ecuadorean presidential election, the officials who received bribes were replaced by new senior officials. To ensure continuity under the then-existing fuel oil contract and to obtain additional business, Aguilar and his co-conspirators agreed to bribe them as well.
To conceal the scheme, Aguilar and his co-conspirators used a series of fake contracts, sham invoices, and shell entities incorporated in Curacao, Panama, and Cayman Islands. Aguilar also used alias email accounts to communicate with his co-conspirators rather than his Vitol email.
The evidence at trial also demonstrated that Aguilar used the same system of shell entities and sham invoices to launder bribe payments to two officials at PPI. In total, Aguilar paid approximately $600,000 in bribes to these officials to obtain numerous contracts for Vitol to supply hundreds of millions of dollars of ethane gas to PEMEX.
The jury convicted Aguilar of conspiracy to violate the Foreign Corrupt Practices Act (FCPA), violating the FCPA, and conspiracy to commit money laundering. He faces a maximum penalty of five years in prison on each of the FCPA counts and 20 years in prison on the money laundering count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Seven of Aguilar’s co-conspirators have pleaded guilty to their roles in the scheme and are awaiting sentencing. These individuals have agreed to forfeit more than $63 million.
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 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, Vitol agreed to pay a combined $135 million in penalties as part of a coordinated resolution with the Justice Department, the Commodity Futures Trading Commission, and authorities in Brazil.
FBI Miami’s International Corruption Squad investigated the case.
Trial Attorney Clayton P. Solomon and Assistant Chiefs Derek J. Ettinger and Jonathan P. Robell of the Fraud Section, Deputy Chief Adam J. Schwartz and Trial Attorney D. Hunter Smith of MLARS, and Assistant U.S. Attorneys Jonathan P. Lax, Matthew R. Galeotti, and Nick M. Axelrod for the Eastern District of New York are prosecuting the case. The MLARS Special Financial Investigations Unit and Justice Department’s Office of International Affairs also provided substantial assistance.
The Criminal Division’s Fraud Section is responsible for investigating and prosecuting FCPA matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
Felon Sentenced to 10 Years in Prison for Trafficking Firearms and Narcotics in BrooklynRead the Press Release
Earlier today, at the federal courthouse in Brooklyn, United States District Judge LaShann DeArcy Hall sentenced Ronald Delaespada to 10 years in prison for his role in a firearms trafficking scheme and for possession with intent to distribute fentanyl, heroin, cocaine and crack cocaine. Delaespada pleaded guilty to the charges in February 2023.
Delaespada’s co-defendant Rayon Lovett pleaded guilty to firearms trafficking charges in February 2023 and was sentenced to 85 months’ imprisonment in October 2023. Delaespada’s co-defendant and brother Owen Welch pleaded guilty to firearms trafficking charges in July 2023 and is currently awaiting sentencing.
Breon Peace, United States Attorney for the Eastern District of New York, Bryan DiGirolamo, Assistant Special Agent-in-Charge, U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives, New York (ATF), and Edward A. Caban, Commissioner, New York City Police Department (NYPD), announced the sentence.
“Delaespada is a career criminal who sold illegal guns, including an assault-type rifle, near a school, a church and on bustling streets in the heart of Brooklyn, without regard for how these lethal weapons could be used,” stated United States Attorney Peace. “Today’s sentence will keep the defendant off the street for years, a punishment he deserves for his blatant disrespect for the law and his dangerous conduct. I commend the brave NYPD undercover officer, along with the Special Agents of ATF, whose excellent work kept 17 lethal weapons off the streets of our community.”
“While communities across this country are coming together in grief because of the devastation of gun violence — some people are unlawfully selling firearms to others with blatant disregard for the impact on the lives of others. ATF will continue to do all we can to reduce gun violence by stopping the traffickers who flood our communities with illegal firearms. Crime gun intelligence enhances our ability to identify both amateur and prolific traffickers,” stated ATF Assistant Special Agent-in-Charge DiGirolamo. “Every crime gun off the streets is a potential life saved. Excellent work by the men and women of ATF NY Joint Firearms Task Force, our partners at NYPD and EDNY.”
“This kind of meaningful prison sentence shows our courageous police officers that New Yorkers will not tolerate such lawless behavior in our neighborhoods,” stated NYPD Commissioner Caban. “I commend our dedicated undercover officer, and I thank our colleagues at the ATF and the office of the U.S. Attorney for the Eastern District of New York for continuing to be highly effective partners in our public safety mission.”
Between February and June 2022, Delaespada, Lovett and Welch were jointly responsible for selling 17 firearms, including the semi-automatic weapons depicted above, to an undercover NYPD officer in Brooklyn.
The defendants conducted these firearms sales in vehicles outside of homes in the Prospect Park South neighborhood of Brooklyn, including in locations near Prospect Park, across from a church, and near an elementary school. The firearms sales often occurred in the middle of the afternoon and in broad daylight, with the defendants brazenly walking down public streets carrying bags of dangerous firearms. On June 15, 2022, Lovett and Welch sold the undercover officer a KelTec KS7 shotgun and an American Tactical AR-15-style rifle, with a high-capacity magazine attachment, for several thousand dollars.
Delaespada, who was convicted in 2015 in the Eastern District of Virginia for narcotics trafficking and possessing a firearm as a felon, was on federal supervised release when he committed the instant offense and has multiple felony convictions in the State of New York.
When Delaespada was arrested, he possessed more than 80 pills containing fentanyl, more than 38 grams of a heroin/fentanyl mixture, and more than 50 grams of cocaine and more than 30 grams of crack cocaine.
Assistant United States Attorneys Benjamin Weintraub and Andrew Reich are in charge of the prosecution.
The Defendants:
RONALD DELAESPADA
Age: 48
Brooklyn, New YorkRAYON LOVETT
Age: 37
Brooklyn, New YorkOWEN WELCH
Age: 44
Brooklyn, New YorkE.D.N.Y. Docket No. 22-CR-341 (LDH)
Ex-Energy Trader for Vitol Convicted of Foreign Bribery and Money Laundering SchemeRead the Press Release
BROOKLYN, NY – Javier Aguilar, a former trader at Vitol, Inc. (Vitol), was convicted today by a federal jury in Brooklyn on all counts of a superseding indictment relating to violations of the Foreign Corrupt Practices Act (FCPA) by paying bribes to officials of Petroecuador, the Ecuadorian state-owned oil company. Aguilar was also convicted of laundering money used to bribe Ecuadorian officials and officials at PEMEX Procurement International (PPI), a wholly owned affiliate of the Mexican state-owned oil company, PEMEX. The verdict followed an eight-week trial before Senior United States District Judge Eric N. Vitaliano. When sentenced, Aguilar faces up to 30 years in prison.
Breon Peace, United States Attorney for the Eastern District of New York, Nicole M. Argentieri, Acting Assistant Attorney General 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 verdict.
“Today’s verdict represents another victory in this Office’s commitment to rooting out corruption in the international marketplace,” stated United States Attorney Peace. “The defendant and his co-conspirators sought to enrich themselves through criminal backroom deals. The people of Ecuador and Mexico deserved better and companies that play by the rules should know that the process is not rigged. The Department of Justice and my Office will continue to prioritize holding to account individuals who enrich themselves through bribery.”
“Javier Aguilar bribed officials at state-owned oil and gas companies in Ecuador and Mexico using shell companies and sham invoices to obtain business for Vitol, Inc., where he worked as an oil and gas trader. With today’s verdict, the jury has held him accountable for his role in a sophisticated bribery and money laundering scheme that netted Vitol hundreds of millions of dollars in contracts,” said Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division. “Foreign bribery erodes the rule of law, disadvantages honest companies, and emboldens corrupt government officials. The Criminal Division will continue to vigorously pursue wrongdoers who bribe foreign officials and bring them to justice.”
“As demonstrated by this case, the Foreign Corrupt Practices Act has a long reach,” stated FBI Special Agent-in-Charge Veltri. “Aguilar’s egregious attempt to bribe officials in Ecuador and Mexico failed and he will now face tough penalties. I want to commend our partners at the U.S. Attorney’s Office for the Eastern District of New York and at the Department of Justice for their close cooperation on this case.”
As proven at trial, Aguilar paid more than $1 million in bribes to Petroecuador and PPI officials to obtain lucrative contracts for Vitol.
Between 2015 and 2020, Aguilar was a trader in Vitol’s Houston office. As a part of the scheme, Aguilar and his co-conspirators agreed to bribe senior Ecuadorian officials to obtain a $300 million contract to purchase fuel oil for Vitol. Aguilar and his co-conspirators used another Middle Eastern state-owned entity to circumvent Petroecuador’s restrictions on contracts with private companies. In return for the promise and payments of bribes, the Ecuadorian officials then ensured that the Middle Eastern state-owned entity and Vitol were awarded the contract. Following the 2017 Ecuadorean presidential election, the officials who received bribes were replaced by new senior officials. To ensure continuity under the then-existing fuel oil contract and to obtain additional business, Aguilar and his co-conspirators agreed to bribe them as well.
To conceal the scheme, Aguilar and his co-conspirators used a series of fake contracts, sham invoices and shell entities incorporated in Curacao, Panama, and Cayman Islands. The defendant also used alias email accounts rather than his Vitol email to communicate with his co-conspirators.
The evidence at trial also demonstrated that Aguilar used the same system of shell entities and sham invoices to launder bribe payments to two officials at PEMEX Procurement International. In total, Aguilar paid approximately $600,000 in bribes to these officials to obtain numerous contracts for Vitol to supply hundreds of millions of dollars of ethane gas to PEMEX.
The evidence at trial included testimony from 10 witnesses, including three of the former Mexican and Ecuadorian officials who received bribes from the defendant, as well as consultants who facilitated the bribes, and an intermediary who laundered the bribes for the defendant; bribe payments ledgers; emails, including from the defendant’s alias email accounts; recorded calls and meetings; travel records; and bank records showing how the defendant and his co-conspirators moved money to bribe officials through offshore shell companies. In one of the recorded phone calls played at trial, the defendant told a co-conspirator that his money launderer in Curacao “has to make up some fake contracts.”
Aguilar faces a maximum penalty of five years in prison on each of the FCPA counts and 20 years in prison on the money laundering count.
Seven of the defendant’s co-conspirators have pleaded guilty to their role in the scheme and are awaiting sentencing. These individuals have agreed to forfeit more than $63 million.
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 Money Laundering and Asset Recovery Section (MLARS) 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 investigation was conducted by FBI Miami’s International Corruption Squad.
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 MLARS. Assistant United States Attorneys Jonathan P. Lax, Matthew R. Galeotti, and Nick M. Axelrod 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, and Paralegal Specialist Peyton Jefferson. The MLARS Special Financial Investigations Unit and the Justice Department’s Office of International Affairs provided substantial assistance in this case.
The Defendant:
JAVIER AGUILAR
Age: 49
Houston, TexasE.D.N.Y. Docket No. 20-CR-390 (ENV)
Queens Man Indicted for Stealing More Than $1.1 Million in COVID-19 Loan Fraud SchemeRead the Press Release
Today in federal court in Brooklyn, Terry Dor was arraigned on an eight-count indictment charging him with wire fraud, theft of public funds and money laundering in connection with a scheme to steal funds from the Economic Injury Disaster Loan program (EIDL), a United States Small Business Administration (SBA) program that provided emergency funding to distressed businesses during the Covid-19 pandemic. Dor was arrested this morning and arraigned before United States Chief Magistrate Judge Lois Bloom who released him on a $50,000 bond.
Breon Peace, United States Attorney for the Eastern District of New York, and Thomas Fattorusso, Special Agent-in-Charge, Internal Revenue Service-Criminal Investigation, New York (IRS-CI), announced the arrest and indictment.
“As alleged, the defendant submitted applications filled with fabricated information in order to steal more than $1 million dollars in government funds intended to help hard-hit small businesses and their employees survive the economic fallout of the COVID-19 pandemic,” stated United States Attorney Peace. “The defendant then laundered and used the stolen funds to buy jewelry and for personal securities trading. Today’s indictment shows that this Office remains committed to identifying and prosecuting those who stole pandemic relief funds.”
“Dor is an alleged opportunist who took advantage of a program meant to help business owners who suffered loss with the pandemic. He allegedly used a sham business to steal more than a million dollars from the EIDL program, decreasing the amount of available funds for those in need,” stated IRS-CI Special Agent-in-Charge Fattorusso. “IRS Criminal Investigation New York remains committed to working with the U.S. Attorney’s Office for the Eastern District of New York to ensure that those who steal from the American taxpayer—to adorn themselves with lavish gifts—are arrested and prosecuted.”
The EIDL provided qualifying small businesses with low-interest loans. The Coronavirus Aid, Relief and Economic Security (CARES) Act expanded EIDL to provide economic support to help offset the temporary loss of revenue experienced by businesses due to the COVID-19 pandemic.
As alleged in the indictment, Dor applied for EIDL loans in 2020 and 2021. In the initial application and subsequent modification requests, Dor claimed that he operated a Brooklyn-based consulting business called Terry Dor Professional Consultants, LLC (TDPC), which, according to the defendant, had more than $575,000 in revenue and $535,000 in expenses during calendar year 2019. In reality, TDPC was a sham business with no legitimate revenue or expenses. Based on Dor’s false claims, the SBA deposited approximately $1,151,000 in EIDL funds to a bank account controlled by Dor via three installments. Dor then wired the EIDL proceeds to other accounts he controlled and used the proceeds to fund personal and non-TDPC expenses. For example, on December 13, 2021, Dor used $125,000 of the EIDL proceeds referenced above to make a purchase at a premium jewelry vendor located in New York City.
The charges in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty. If convicted, Dor faces a maximum sentence of 20 years’ imprisonment.
The government’s case is being handled by the Office’s General Crimes Section. Assistant United States Attorney David Berman is in charge of the prosecution, with the assistance of Financial Investigator Analyst John Gagliardo and Paralegal Specialist Katrina Batista.
The Defendant:
TERRY DOR
Age: 36
Jamaica, Queens
E.D.N.Y. Docket No. 24-CR-75 (OEM)Cofundador del Cártel de Sinaloa Acusado en Formal Sustitutiva de Conspiración para Fabricar y Distribuir FentaniloRead the Press Release
Hoy se presentó una quinta acusación formal sustitutiva en un tribunal federal de Brooklyn atribuyendo a Ismael Zambada García, también conocido como El Mayo, el delito de unirse en asociación delictuosa para fabricar y distribuir una sustancia que contenía N-fenil-N-[1-(2-feniletil)-4-piperidinil] propanamida (fentanilo), una sustancia controlada de categoría II con la intención y a sabiendas de que dichas sustancias serían importadas ilegalmente a los Estados Unidos. Zambada fue imputado anteriormente en múltiples acusaciones formales sustitutivas por dirigir una actividad delictiva continuada, así como por asociación delictuosa para cometer homicidio, asociación delictuosa para lavar dinero, asociación delictuosa para fabricar y distribuir cocaína, heroína, metanfetamina y fentanilo, así como por otros delitos relacionados con drogas, a través de su liderazgo continuado del Cártel de Sinaloa, una de las organizaciones de narcotráfico más violentas y poderosas del mundo. La quinta acusación formal sustitutiva extiende las fechas de finalización de la actividad delictiva continuada y varias asociaciones delictuosas desde mayo de 2014 hasta enero de 2024. Zambada García permanece prófugo.
El fiscal federal Breon Peace para el Distrito Este de Nueva York, la administradora Anne Milgram de la Administración para el Control de Drogas (DEA), el subdirector interino Iván J. Arvelo de Operaciones Nacionales de Investigaciones de Seguridad Nacional (HSI), el subdirector a cargo David Sundberg de la Oficina de Campo de Washington del FBI, el comisario Edward A. Caban del Departamento de Policía de la Ciudad de Nueva York (NYPD) y el superintendente Steven G. James de la Policía Estatal de Nueva York (NYSP) anunciaron la quinta acusación formal sustitutiva.
“Tal como se alega, Zambada García está acusado de numerosos delitos relacionados con drogas, que ahora incluyen la fabricación y distribución de fentanilo, una droga mortal que era en gran medida desconocida cuando fundó el Cártel de Sinaloa hace más de tres décadas y que hoy es responsable de un daño inconmensurable”, señaló el fiscal federal Peace. “Si bien Zambada García continúa siendo un líder principal de la actividad delictiva responsable de importar enormes cantidades de narcóticos a los Estados Unidos, esta quinta acusación formal sustitutiva demuestra nuestra firme determinación de llevarlo ante la justicia, tal como lo hicimos con su ex cómplice El Chapo, y tal como continuaremos haciendo con todos aquellos que trafican con drogas y buscan lucrar con la devastación infligida a nuestras comunidades”.
El fiscal federal Peace también expresó su agradecimiento a la Sección de Narcóticos y Drogas Peligrosas de la División Penal del Departamento de Justicia por su asistencia en el caso.
“El fentanilo es la amenaza de drogas más letal que los estadounidenses hayan enfrentado jamás, y el Cártel de Sinaloa sigue siendo el mayor traficante de fentanilo para los Estados Unidos”, señaló la administradora de la DEA, Milgram. “Siendo el fentanilo la principal causa de muerte entre los estadounidenses entre 18 y 45 años, debemos seguir responsabilizando a Zambada García y otros líderes, miembros y asociados de los cárteles por las personas que han matado”.
“Como cofundador y actual líder de la organización de narcotráfico más grande y poderosa del mundo, Ismael Zambada García está acusado de suministrar fentanilo a los Estados Unidos en un momento en que el narcótico letal se ha cobrado vidas a un ritmo devastador”, comentó Arvelo, subdirector interino de HSI. “Durante décadas, el despiadado y violento Cártel de Sinaloa ha continuado su flagelo mortal con el tráfico generalizado de fentanilo, cocaína, heroína, metanfetamina y otras drogas sintéticas para los Estados Unidos. HSI de Nueva York y nuestros colaboradores del orden público no se detendrán hasta que llevemos a Zambada García ante la justicia en nombre de sus innumerables víctimas”.
“Tal como se alega, Zambada García ha supervisado durante décadas el tráfico de decenas de miles de libras de cocaína, heroína, metanfetamina y fentanilo para los Estados Unidos junto con decenas de actos de violencia relacionados”, dijo el subdirector a cargo del FBI, Sundberg. “Esta acusación formal sustitutiva es otro ejemplo más de nuestro compromiso de llevar a los líderes de los cárteles ante la justicia. Prometemos continuar trabajando con nuestros colaboradores nacionales y extranjeros para desmantelar organizaciones violentas de delincuencia transnacional como el Cártel de Sinaloa”.
“Después de la detención y condena de Joaquín ‘El Chapo’ Guzmán Loera, los investigadores del NYPD permanecieron totalmente dedicados a nuestra colaboración con el orden público enfocada en llevar ante la justicia a los líderes que quedan del Cártel de Sinaloa”, comentó el comisario Caban del NYPD. “Este último cargo contra Zambada García demuestra aún más nuestro compromiso de impedir que los productos ilícitos de su masiva y violenta actividad delictiva ingresen a nuestro país y plaguen las calles de nuestras ciudades”.
“Sencillamente, no toleraremos este tipo de actividad de tráfico ilegal de drogas en nuestro país y en el estado de Nueva York”, dijo el superintendente James del NYSP. “Quiero agradecer a la fiscalía federal y a todos nuestros colaboradores del orden público por su tenaz trabajo en este caso. Es gracias a su colaboración continua y su firme compromiso que estamos un paso más cerca de acabar con esta peligrosa actividad y poner a Zambada García tras las rejas”.
Tal como se alega, Zambada García fue cofundador del Cártel de Sinaloa con su ex coacusado Joaquín “El Chapo” Guzmán Loera. Guzmán Loera fue declarado culpable por un jurado federal en Brooklyn en febrero de 2019 y sentenciado a cadena perpetua más 30 años. Zambada García ha seguido evadiendo la captura y, tal como se alega, continúa dirigiendo el Cártel de Sinaloa desde México. Según la acusación formal sustitutiva, desde 1989 hasta 2024, Zambada García dirigió una actividad delictiva continuada responsable de la importación y distribución de cantidades masivas de narcóticos y que generó miles de millones de dólares en ganancias. Para asegurar el éxito del cártel, Zambada García empleó a personas para obtener rutas de transporte y bodegas para importar y almacenar narcóticos, y a sicarios para llevar a cabo secuestros y homicidios en México y tomar represalias contra rivales que amenazaban al cártel. Los millones de dólares generados por la venta de drogas fueron luego transportados de regreso a México. El nombre de Guzmán Loera ha sido eliminado de la quinta acusación formal sustitutiva a la luz de su condena en juicio de 2018.
Según lo especificado en la ley, la cantidad de fentanilo involucrada en la asociación delictuosa atribuible al acusado como resultado de su propia conducta y de la conducta de otros razonablemente previsible para él, fue de al menos 400 gramos o más, pero se demostrará en el juicio que se trató de una cantidad bastante más grande.
El Departamento de Estado de Estados Unidos ofrece una recompensa de hasta $15 millones de dólares estadounidenses por información que conduzca a la detención y/o condena de Zambada García. Si tiene información, comuníquese con la DEA al +1-619-540-6912, donde se pueden aceptar mensajes de aplicaciones de mensajería social, o por correo electrónico en [email protected]. Si se encuentra fuera de los Estados Unidos, comuníquese con la embajada o el consulado de los Estados Unidos más cercano.
Los fiscales federales adjuntos Francisco J. Navarro, Robert M. Pollack y Lauren A. Bowman para el Distrito Este de Nueva York están procesando el caso.
Esta acusación formal sustitutiva es parte de una investigación de la Fuerza de Tarea de Control de Drogas contra la Delincuencia Organizada (OCDETF). La OCDETF identifica, desarticula y desmantela a los narcotraficantes, lavadores de dinero, pandillas y organizaciones delictivas transnacionales de más alto nivel que amenazan a los Estados Unidos mediante el uso de un enfoque multiagencial dirigido por fiscales e impulsado por inteligencia que aprovecha las fortalezas de las agencias del orden público federales, estatales y locales contra las redes delictivas.
Una acusación formal es simplemente un alegato. Todos los acusados se presumen inocentes hasta que se demuestre su culpabilidad en un tribunal de justicia.
Co-Founder of Sinaloa Cartel Charged in Superseding Indictment with Conspiracy to Manufacture and Distribute FentanylRead the Press Release
A fifth superseding indictment was filed today in federal court in Brooklyn charging Ismael Zambada Garcia, also known as “El Mayo,” with conspiring to manufacture and distribute a substance, containing N-phenyl-N-[1-(2-phenylethyl)-4-piperidinyl] propanamide (“fentanyl”), a Schedule II controlled substance intending and knowing that such substances would be unlawfully imported into the United States. Zambada was previously charged in multiple superseding indictments 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, through his continuing leadership of the Sinaloa Cartel, one of the most violent and powerful drug trafficking organizations in the world. The fifth superseding indictment extends the end-dates of the continuing criminal enterprise and several conspiracies from May 2014 to January 2024. Zambada Garcia remains at large.
Breon Peace, United States Attorney for the Eastern District of New York; Anne Milgram, Administrator, U.S. Drug Enforcement Administration (DEA), Ivan J. Arvelo, Acting Assistant Director of Domestic Operations, Homeland Security Investigations (HSI); David Sundberg, Assistant Director-in-Charge, Federal Bureau of Investigation, Washington Field Office (FBI); Edward A. Caban, Commissioner, New York City Police Department (NYPD); and Steven G. James, Superintendent, New York State Police (NYSP), announced the fifth superseding indictment.
“As alleged, Zambada Garcia is charged with numerous drug offenses, now including the manufacture and distribution of fentanyl, a deadly drug that was largely unheard of when he founded the Sinaloa Cartel more than three decades ago and today is responsible for immeasurable harm,” stated United States Attorney Peace. “While Zambada Garcia continues to be a principal leader of the criminal enterprise responsible for importing enormous quantities of narcotics into the United States, this fifth superseding indictment demonstrates our firm resolve to bring him to justice, just as we did with his former co-conspirator El Chapo, and just as we will continue to do to all those who traffic drugs and seek to profit from the devastation inflicted on our communities.”
Mr. Peace also expressed his thanks to the Justice Department Criminal Division’s Narcotic and Dangerous Drug Section for its assistance on the case.
“Fentanyl is the deadliest drug threat Americans have ever faced, and the Sinaloa Cartel continues to be the largest trafficker of fentanyl into the United States,” stated DEA Administrator Milgram. “With fentanyl the leading cause of death for Americans between the ages of 18 and 45, we must continue to hold Zambada Garcia and other cartel leaders, members, and associates accountable for the people they have killed.”
“As the co-founder and current leader of the largest, most powerful drug trafficking organization in the world, Ismael Zambada Garcia is accused of supplying fentanyl to the United States at a time when the lethal narcotic has claimed lives at a devastating rate. For decades, the ruthlessly violent Sinaloa Cartel has continued its deadly scourge with the pervasive trafficking of fentanyl, cocaine, heroin, methamphetamine, and other synthetic drugs into the U.S,” stated HSI Acting Assistant Director Arvelo. “HSI New York and our law enforcement partners will not stop until we bring Zambada Garcia to justice on behalf of his countless victims.”
“As alleged, Zambada Garcia has, for decades, overseen the trafficking of tens of thousands of pounds of cocaine, heroin, methamphetamine, and fentanyl into the U.S. along with scores of related violence,” stated FBI Assistant Director-in-Charge Sundberg. “This superseding indictment is yet another example of our commitment to bringing cartel leaders to justice. We vow to continue to work with our domestic and foreign partners to dismantle violent transnational criminal organizations like the Sinaloa Cartel.”
“After the arrest and successful conviction of Joaquin ‘El Chapo’ Guzman Loera, NYPD investigators remained fully dedicated to our law enforcement partnership focused on bringing the Sinaloa Cartel’s remaining leadership to justice,” stated NYPD Commissioner Caban. “This latest charge against Mr. Zambada Garcia further demonstrates our commitment to keeping the illicit products of his massive, violent criminal enterprise from entering our country and plaguing our cities’ streets.”
“We simply will not tolerate this type of illegal drug trafficking activity in our country and New York State. I want to thank the U.S. Attorney’s Office and all our law enforcement partners for their tenacious work on this case. It is because of their ongoing collaboration and steadfast commitment that we are one step closer to shutting down this dangerous enterprise and placing Mr. Garcia behind bars,” stated NYSP Superintendent James.
As alleged, Zambada Garcia was a co-founder of the Sinaloa Cartel with his former co-defendant Joaquin “El Chapo” Guzman Loera. Guzman Loera was convicted by a federal jury in Brooklyn in February 2019 and sentenced to life in prison plus 30 years. Zambada Garcia has continued to evade capture, and, as alleged, continues to run the Sinaloa Cartel from Mexico. 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 cartel, Zambada Garcia employed individuals to obtain transportation routes and warehouses to import and store narcotics, and “sicarios,” or hit men, to carry out kidnappings and murders in Mexico to retaliate against rivals who threatened the cartel. The millions of dollars generated from the drug sales were then transported back to Mexico. Guzman Loera’s name has been removed from the fifth superseding indictment in light of his 2018 trial conviction.
Under the statute, the amount of fentanyl involved in the conspiracy attributable to the defendant as a result of his own conduct, and the conduct of others reasonably foreseeable to him, was at least 400 grams or more, but a vastly larger quantity would be proven at trial.
The charges in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty.
The U.S. Department of State is offering a reward of up to $15 million for information leading to the arrest and/or conviction of Zambada Garcia. If you have information, please contact the DEA at +1-619-540-6912, which can accept messages from social messaging applications, or via email at [email protected]. If you are located outside of the United States, please contact the nearest U.S. Embassy or Consulate.
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, and Lauren A. Bowman are in charge of the prosecution.
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 Defendant:
ISMAEL ZAMBADA GARCIA (also known as “El Mayo”)
Age: 76
MexicoE.D.N.Y. Docket No. 9-CR-466 (BMC)
Russian-Canadian National Pleads Guilty to Conspiracy to Launder Money from Scheme to Send UAV and Missile Components to Russia in Violation of U.S. SanctionsRead the Press Release
Earlier today in federal court in Brooklyn, Kristina Puzyreva pleaded guilty to money laundering conspiracy for her role in a multimillion-dollar scheme to send components used in unnamed aerial vehicles (UAVs) and guided missile systems and other weapons to sanctioned entities in Russia. The components shipped in violation of export control and sanctions laws were later found in Russian weapons platforms and signals intelligence equipment in Ukraine. At sentencing, Puzyreva faces up to twenty years in prison. Prosecution against the other defendants remains pending.
Breon Peace, United States Attorney for the Eastern District of New York, Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division, Erin Keegan, Acting Special Agent-in-Charge, Homeland Security Investigations New York (HSI), James Smith, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Matthew S. Axelrod, Assistant Secretary of Commerce for Export Enforcement, U.S. Department of Commerce, Bureau of Industry and Security, Office of Export Enforcement (BIS), announced the plea.
“As she admitted today, the defendant was a key part of the plan, laundering proceeds from the scheme to evade sanctions and ship UAV and missile components to Russia that were later found on the battlefield in Ukraine,” stated United States Attorney Peace. “Today’s plea demonstrates that the Eastern District of New York will not allow criminals to endanger national security by supplying Russia with U.S.-sourced military technology.”
“Kristina Puzyreva and her co-defendants allegedly purchased and dispatched millions of dollars in U.S.-sourced electronics to support the Kremlin in its ongoing attacks of Ukraine. Her money laundering conspiracy was directly linked to 298 shipments of restricted technology, valued at $7 million, to the Russian battlefield,” said HSI New York Acting Special Agent in Charge Erin Keegan. “While today’s guilty plea remains a positive step toward justice, HSI New York will continue to relentlessly pursue those who seek to exploit U.S. export control laws for financial gain.”
“Following the money is a law enforcement imperative. This defendant laundered money on behalf of several Brooklyn front companies to ship U.S.-origin electronics to sanctioned entities in Russia,” said Matthew S. Axelrod, Assistant Secretary of Commerce for Export Enforcement. “As today’s guilty plea makes clear, we are unyielding in our efforts to help prevent American electronics from being used in Russian missiles and drones that kill innocent civilians in Ukraine.”
"Kristina Puzyreva admitted today she willingly played a key role in a global procurement scheme, which ultimately helped the government of Russia obtain sanctioned equipment for its war efforts. Puzyreva chose to turn a blind eye to the law to enrich herself, compromising the national security of the United States. This plea reminds anyone willing to help the Russian government evade sanctions that the FBI will pursue swift punishment in the criminal justice system," stated FBI Assistant Director-in-Charge Smith.
As alleged in the indictment and other court filings, the defendant laundered money as part of a sophisticated export control and sanctions evasion scheme involving SH Brothers Inc. (SH Brothers) and SN Electronics, Inc. (SN Electronics), two companies registered in Brooklyn, New York. Using the SH Brothers and SN Electronics corporate entities, the defendant’s co-conspirators unlawfully sourced, purchased and shipped millions of dollars in dual-use electronics from U.S. manufacturers to end users, including sanctioned entities, in Russia. The electronic components and integrated circuits shipped were later found in seized Russian weapons platforms and signals intelligence equipment in Ukraine, including in UAVs and guided missiles. During the period charged in the indictment, SH Brothers made hundreds of shipments valued at over $7 million to Russia.
Puzyreva and her husband, co-defendant Nikolay Goltsev, traveled on multiple occasions from Canada to meet with their co-defendant Salimdzhon Nasriddinov in Brooklyn. During such trips, Puzyreva utilized numerous bank accounts to make financial transactions in furtherance of the scheme. For example, Puzyreva is the signatory on two New York accounts, including one that lists Nasriddinov’s home address in Brooklyn (also the registered address of SH Brothers) as the address of record. Records for these accounts reflect large, structured cash deposits in Brooklyn and Manhattan that correspond with trips that Puzyreva and Goltsev made to New York. These deposits were then transferred to accounts held and used by Puzyreva and Goltsev in Canada.
The scheme involved millions of dollars in transactions and was lucrative for the defendants. For example, in a text message exchange on or about January 13, 2023, Goltsev complained to Puzyreva that a co-conspirator “asked me to make 80 accounts . . . I am making accounts for 3 mln [i.e., million]. Fingers hurting already from the laptop.” Puzyreva responded, “Lot of money? We will get rich.” Later, on or about January 20, 2023, Goltsev messaged Puzyreva, “Dasha (a co-conspirator) paid. 700k.” Notably, financial records revealed wire transfers totaling approximately $700,000 into an SH Brothers account in or around January 2023 from a Hong Kong-based entity as part of an order for a sanctioned Russian entity.
The government seized $20,000 in cash from the New York hotel room in which the defendant was arrested. In total, the government has seized approximately $1.68 million dollars in connection with this export scheme.
The government’s case is being handled by the Office’s National Security and Cybercrime Section. Assistant United States Attorneys Artie McConnell and Ellen H. Sise are in charge of the prosecution, along with Trial Attorney Christopher M. Cook of the National Security Division’s Counterintelligence and Export Control Section, with assistance from Litigation Analysts Mary Clare McMahon and Joseph Levin. Assistant United States Attorney Laura Mantell of the Office’s Asset Recovery Section is handling forfeiture matters.
The FBI, Department of Commerce’s Office of Export Enforcement’s New York Field Office, and Department of Homeland Security Homeland Security Investigations are investigating the case.
Today’s actions were coordinated through the Justice and Commerce Departments’ Disruptive Technology Strike Force and the Justice Department’s Task Force KleptoCapture. The Disruptive Technology Strike Force is an interagency law enforcement strike force co-led by the Departments of Justice and Commerce designed to target illicit actors, protect supply chains, and prevent critical technology from being acquired by authoritarian regimes and hostile nation states. Task Force KleptoCapture is an interagency law enforcement task force dedicated to enforcing the sweeping sanctions, export restrictions and economic countermeasures that the United States has imposed, along with its allies and partners, in response to Russia’s unprovoked military invasion of Ukraine.
The Defendant:
KRISTINA PUZYREVA
AGE: 32
Montreal, CanadaE.D.N.Y. Docket No. 23-CR-452
Canadian National Pleads Guilty to Conspiracy to Launder Money from Scheme to Send UAV and Missile Components to Russia in Violation of U.S. SanctionsRead the Press Release
Earlier today in federal court in Brooklyn, Kristina Puzyreva, 32, of Montreal, pleaded guilty to money laundering conspiracy for her role in a multimillion-dollar scheme to send components used in unmanned aerial vehicles (UAVs) and guided missile systems and other weapons to sanctioned entities in Russia. The components shipped in violation of export control and sanctions laws were later found in Russian weapons platforms and signals intelligence equipment in Ukraine.
“The defendant in this case flouted our sanctions and export control laws by scheming to send sensitive U.S.-sourced missile and other weapons components to Russia that were later found in Russian weapons systems on the battlefield in Ukraine,” said Deputy Attorney General Lisa O. Monaco. “She now faces time in a United States prison for her actions. As we approach the two-year anniversary of Russia’s unlawful invasion of Ukraine, through our Disruptive Technology Strike Force and our Task Force KleptoCapture, the Justice Department will continue using all available legal tools and authorities to hold accountable those who supply the Russian war machine with critical U.S. technology.”
“Ms. Puzyreva admitted to taking part in an elaborate scheme to smuggle millions of dollars’ worth of restricted U.S. components for use in Russian weapons deployed against Ukraine,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “The Justice Department is committed to denying Moscow the resources it needs to prosecute its unjust invasion of Ukraine, and we will hold accountable covert enablers and profiteers who violate U.S. law to further Russian aggression.”
“The defendant was a necessary player in a scheme to evade export controls and sanctions and ship UAV and missile components to Russia that were later found on the battlefield in Ukraine,” stated United States Attorney Peace. “Without the defendant laundering the proceeds of the scheme, the export scheme would not have worked. Today’s plea demonstrates that the Eastern District of New York will not allow criminals to endanger national security by supplying Russia with U.S.-sourced military technology. This Office will faithfully prosecute every member of a conspiracy to the fullest extent of the law.”
“The FBI and our partners will hold accountable those who violate our laws and enable adversarial nations to obtain U.S. technology to be used in foreign weapon systems,” said Deputy Director Paul Abbate. “In this case, the defendant laundered funds in a scheme which allowed Russia to obtain components used in guided missiles and other systems against Ukraine, and she is now facing the consequences of her actions.”
“Following the money is a law enforcement imperative. This defendant laundered money on behalf of several Brooklyn front companies to ship U.S.-origin electronics to sanctioned entities in Russia,” said Assistant Secretary of Commerce for Export Enforcement Matthew S. Axelrod of the Department of Commerce. “As today’s guilty plea makes clear, we are unyielding in our efforts to help prevent American electronics from being used in Russian missiles and drones that kill innocent civilians in Ukraine.”
As alleged in the indictment and other court filings, the defendant laundered money as part of a sophisticated export control and sanctions evasion scheme involving SH Brothers Inc. (SH Brothers) and SN Electronics, Inc. (SN Electronics), two companies registered in Brooklyn, New York. Using the SH Brothers and SN Electronics corporate entities, the defendant and her co-conspirators unlawfully sourced, purchased and shipped millions of dollars in dual-use electronics from U.S. manufacturers to end users, including sanctioned entities, in Russia. The electronic components and integrated circuits shipped were later found in seized Russian weapons platforms and signals intelligence equipment in Ukraine, including in UAVs and guided missiles. During the period charged in the indictment, SH Brothers made hundreds of shipments valued at over $7 million to Russia.
Puzyreva and her husband, co-defendant Nikolay Goltsev, traveled on multiple occasions from Canada to meet with their co-defendant Salimdzhon Nasriddinov in Brooklyn. During such trips, Puzyreva utilized numerous bank accounts to make financial transactions in furtherance of the scheme. For example, Puzyreva is the signatory on two New York accounts, including one that lists Nasriddinov’s home address in Brooklyn (also the registered address of SH Brothers) as the address of record. Records for these accounts reflect large, structured cash deposits in Brooklyn and Manhattan that correspond with trips that Puzyreva and Goltsev made to New York. These deposits were then transferred to accounts held and used by Puzyreva and Goltsev in Canada.
The scheme involved millions of dollars in transactions and was lucrative for the defendants. For example, in a text message exchange on or about Jan. 13, 2023, Goltsev complained to Puzyreva that a co-conspirator “asked me to make 80 accounts . . . I am making accounts for 3 mln [i.e., million]. Fingers hurting already from the laptop.” Puzyreva responded, “Lot of money? We will get rich.” Later, on or about Jan. 20, 2023, Goltsev messaged Puzyreva, “Dasha (a co-conspirator) paid. 700k.” Notably, financial records revealed wire transfers totaling approximately $700,000 into an SH Brothers account in or around January 2023 from a Hong Kong-based entity as part of an order for a sanctioned Russian entity.
The government seized $20,000 in cash from the New York hotel room in which the defendant was arrested. In total, the government has seized approximately $1.68 million dollars in connection with this export scheme.
When sentenced, Puzyreva faces a maximum penalty of up to 20 years in prison. A U.S. district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant U.S. Attorneys Artie McConnell and Ellen H. Sise for the Eastern District of New York and Trial Attorney Christopher M. Cook of the National Security Division’s Counterintelligence and Export Control Section are prosecuting the case, with assistance from Litigation Analysts Mary Clare McMahon and Joseph Levin. Assistant U.S. Attorney Laura Mantell of the Eastern District of New York’s Asset Recovery Section is handling forfeiture matters.
The FBI, Department of Commerce’s Office of Export Enforcement’s New York Field Office, and Department of Homeland Security Homeland Security Investigations are investigating the case.
Today’s actions were coordinated through the Justice and Commerce Departments’ Disruptive Technology Strike Force and the Justice Department’s Task Force KleptoCapture. The Disruptive Technology Strike Force is an interagency law enforcement strike force co-led by the Departments of Justice and Commerce designed to target illicit actors, protect supply chains, and prevent critical technology from being acquired by authoritarian regimes and hostile nation states. Task Force KleptoCapture is an interagency law enforcement task force dedicated to enforcing the sweeping sanctions, export restrictions and economic countermeasures that the United States has imposed, along with its allies and partners, in response to Russia’s unprovoked military invasion of Ukraine.
Бывший Президент Компании Lerner Group Признает Свою Вину По Обвинению В Мошенничестве В Отношении КлиентовRead the Press Release
Ранее сегодня в федеральном суде Бруклина Марат Лернер [Marat Lerner], бывший президент компании, занимающейся оказанием услуг по облегчению бремени задолженности, признал себя виновным по одному пункту обвинения в заговоре с целью совершения мошенничества с использованием электронных средств и по одному пункту обвинения в совершении мошенничества с использованием электронных средств в период досудебного освобождения. Лернер признал, что он обманывал своих жертв и украл денежные средства, которые они намеревались использовать для погашения ипотечных кредитов. Судебное слушание проходило перед окружным судьей США Николасом Гарауфисом [Nicholas G. Garaufis]. При вынесении приговора Лернеру грозит максимальное наказание в виде 50 лет тюремного заключения. Лернер также согласился выплатить 2 554 217,11 долларов в качестве компенсации. Обвинение было предъявлено ему в январе 2023 года.
Бреон Пис [Breon Peace], прокурор США по Восточному округу Нью-Йорка, Джеймс Смит [James Smith], помощник директора Федерального бюро расследований (FBI) в Региональном управлении Нью-Йорка, и Томас Фатторуссо [Thomas Fattorusso], руководящий специальный агент в Региональном управлении Нью-Йорка (Налоговое управление США – Отдел расследований по уголовным делам), объявили о признании обвиняемым своей вины.
«Как сегодня признал обвиняемый, Марат Лернер превращал американскую мечту своих жертв в настоящий кошмар, давая ложные обещания об облегчении бремени задолженности по ипотечным кредитам, а на самом деле занимаясь хищением их с трудом заработанных сбережений ради собственной выгоды, — заявил прокурор США Пис. — Прокуратура продолжит защищать сообщества иммигрантов от преступников, использующих свое доверительное положение для совершения мошенничества против них и хищения их денежных средств».
«Марат Лернер действовал в качестве подпольного посредника в своем местном сообществе, но вместо добросовестного выполнения своих обязательств путем выплаты ипотечных кредитов он незаконно присвоил деньги своих ничего не подозревающих жертв, чтобы жить в роскоши. Это было не просто мошенничество с денежными средствами; эти мошеннические действия затронули дома и семьи в его сообществе. Лица, ставшие жертвами обмана Лернера, не смогли выплатить свои ипотечные платежи, а некоторые столкнулись с лишением права собственности за просроченные задолженности. Сегодняшнее признание ответчиком своей вины и согласованное возмещение ущерба — это лишь один шаг на пути обеспечения полной справедливости для жертв его преступлений, а следующий шагом будет вынесение приговора».
Согласно судебным документам и фактам, представленным в ходе слушания о признании вины, Лернер был владельцем Lerner Group, компании, заявлявшей, что она предоставляет услуги по облегчению бремени задолженности, включая изменение ипотечных кредитов, главным образом, в сообществах иммигрантов из Восточной Европы в Бруклине. Многие из жертв, обманутые ответчиком, уже испытывали финансовые затруднения и специально обратились за помощью к Лернеру в надежде на снижение ежемесячных выплат по ипотечным кредитам. Лернер, в свою очередь, обещал им, что он поможет им снизить ежемесячные выплаты по ипотечным кредитам, работая с их ипотечными кредиторами с целью изменения ипотечного кредита или получения федеральной помощи домовладельцам. Для совершения мошенничества Лернер давал указания жертвам о том, что ему необходим доступ к их банковским счетам для прямого перевода платежей в ипотечные банки от их имени; он также заявлял, что платежи будут адресованы либо распорядителю условного депозита, который будет удерживать денежные средства до тех пор, пока их ипотечные кредиты не будут изменены, либо организациям, аффилированным с их ипотечными кредиторами. Лернер также давал указания жертвам не связываться напрямую со своими ипотечными кредиторами, поскольку он будет выступать в качестве связующего звена между ними и их кредиторами.
На самом же деле Лернер украл у потерпевших более 2,5 миллионов долларов — деньги, которые они намеревались использовать для выплаты своих ипотечных кредитов. Как только Лернер получил доступ к банковским счетам потерпевших, он перевел денежные средства с их счетов в подконтрольные ему компании и/или банковские счета. Лернер удержал большую часть денежных средства жертв, тратя их на личные и деловые расходы, включая автомобиль BMW, предметы роскоши и дорогую еду. С целью скрытия фактов мошенничества Лернер давал указания жертвам игнорировать уведомления от их ипотечных кредиторов о просроченных платежах и задолженностях.
В январе 2023 года большое жюри федерального суда Восточного округа Нью-Йорка предъявило Лернеру обвинение и арестовало его в связи с вышеуказанным мошенничеством. Во исполнение постановления Окружного суда США Восточного округа Нью-Йорка Лернер был освобожден под залог и, помимо прочего, получил указание не совершать дополнительных преступлений. Однако Лернер продолжил хищение средств у потерпевших даже после того, как был арестован ранее за те же преступные деяния. После ареста по этому делу, в период с января 2023 года по май 2023 года, Лернер украл у потерпевших не менее 10 тысяч долларов. Впоследствии постановление об освобождении Лернера под залог было отменено.
В результате многолетнего мошенничества Лернера ипотечные кредиторы возбудили дело о взыскании задолженности в отношении нескольких потерпевших. В рамках своего признания вины Лернер согласился выплатить потерпевшим около 2 554 217,11 долларов в качестве компенсации.
Государственное обвинение находится в ведении Отдела по борьбе с мошенничеством в сфере бизнеса и ценных бумаг Прокуратуры США. За уголовное преследование отвечают помощники прокурора США Николас Аксельрод [Nicholas Axelrod] и Дженни Нгай [Genny Ngai] при содействии помощника юриста Джейкоба Менца [Jacob Menz].
Ответчик:
МАРАТ ЛЕРНЕР
Возраст: 41
Бруклин, Нью-Йорк№ дела E.D.N.Y. 23-CR-15 (NGG)
MS-13 Gang Members Sentenced to 35 Years in Prison for Racketeering Charge Including the Murder of 16-Year-Old Victim in Alley Pond Park in QueensRead the Press Release
Earlier today, in federal court in Brooklyn, Luis Rivas, a member of the Centrales Locos Salvatruchas (CLS) clique of La Mara Salvatrucha, also known as MS-13, a transnational criminal organization was sentenced by United States District Judge Rachel P. Kovner to 35 years in prison for the May 16, 2017 fatal stabbing of 16-year-old Julio Vasquez in Alley Pond Park in Queens, and Hobbs Act robberies in Jamaica, Queens, after pleading guilty on July 14, 2023. Previously, co-defendant Josue Leiva, also a member of the CLS clique was sentenced on January 23, 2024 by Judge Kovner to 35 years in prison for the murder of Vasquez and Hobbs Act Robberies. Their co-defendant, and the leader of CLS, Melvi Amador-Rios, was convicted of the murder, the robberies and other charges after a three-week jury trial August 2023, and was sentenced to life in prison plus 38 years in November 2023.
Breon Peace, United States Attorney for the Eastern District of New York, James Smith, 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 sentence.
“The sentencings sends a powerful message to the defendants, other MS-13 members, and the community that gratuitous and senseless violence of this nature will not be tolerated in our district,” stated United States Attorney Peace. “We hope that today brings some measure of closure to the victims and their families.”
“There is no place in our communities for barbaric violence being used to threaten and intimidate. Luis Rivas and Josue Leiva were rightly sentenced today for their roles in a senseless murder and other callously violent actions in the name of MS-13. The FBI’s New York Safe Streets Task Force is determined to ensure members of MS-13 or any other gang using violence in an attempt to control territory and people face significant punishment in the criminal justice system,” stated FBI Assistant Director-in-Charge Smith.
“Meaningful prison sentences like this are why the men and women of the NYPD, in close partnership with our colleagues at the FBI and the office of the U.S. Attorney for the Eastern District of New York, continue to aggressively pursue anyone who senselessly commits violent crimes and puts our communities at risk,” stated NYPD Commissioner Caban. “We vow to remain relentless in our efforts to dismantle gangs and hold their individual members fully accountable for their actions.”
As proven at Amador-Rios’ trial, beginning in fall 2016, the CLS clique, led by Amador-Rios, decided to kill John Doe 3, a CLS chequeo, or low-level MS-13 member, who had been violating the clique’s rules, including by associating with members of the rival 18th Street gang. Amador-Rios ordered Julio Vasquez, also an MS-13 chequeo, to carry out the killing of John Doe 3. Vasquez was tasked with killing John Doe 3 because Vasquez had been violating the clique’s rules and was suspected of cooperating with law enforcement. After Vasquez failed to kill John Doe 3, Amador-Rios ordered Vasquez to be killed. On May 16, 2017, Rivas and Leiva lured Vasquez to a wooded area of Alley Pond Park where they stabbed him more than 30 times, nearly decapitating him and ultimately killing him. Vasquez’s body was discovered by a bird watcher in the park on May 21, 2017. Leiva and Rivas pleaded guilty on July 14, 2023 to racketeering charges, including Vasquez’s murder.
Leiva and Rivas also each participated in separate armed robberies of small businesses in Jamaica, Queens. In 2017, Rivas, accompanied by Amador-Rios and other gang members, robbed at gunpoint a money transfer business, during which Rivas pistol whipped an employee in the face. In 2018, Leiva, accompanied by Amador-Rios and other gang members, committed a robbery involving holding the owner and a customer of a convenience store at gunpoint.
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.
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 gang has thousands of members across the United States. 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 45 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 including the FBI’s Safe Streets Task Force, comprising agents and officers of the FBI and NYPD.
The government’s case is being handled by the Office’s Organized Crime and Gangs Section. Assistant United States Attorneys Nadia E. Moore, Anna L. Karamigios, and Raffaela S. Belizaire are in charge of the prosecution, with the assistance of Paralegal Specialist Emily Moosher.
The Defendant:
LUIS RIVAS (also known as “Inquieto” and “Kiko”)
Age: 28
Jamaica, New YorkJOSUE LEIVA (also known as “Colocho”)
Age: 27
Jamaica, New YorkE.D.N.Y. Docket No. 18-CR-398 (S-3) (RPK)
Former President of the Lerner Group Pleads Guilty to Defrauding His ClientsRead the Press Release
Earlier today, in federal court in Brooklyn, Marat Lerner, the former president of a debt relief services business, pleaded guilty to one count of wire fraud conspiracy and one count of committing wire fraud while he was on pre-trial release. Lerner admitted that he lied to his victims and that he stole money that the victims had intended to use to pay off their home mortgages. The proceeding was held before United States District Judge Nicholas G. Garaufis. When sentenced, Lerner faces a maximum sentence of 50 years’ imprisonment. Lerner has also agreed to pay $2,554,217.11 in restitution. He was indicted in January 2023.
Breon Peace, United States Attorney for the Eastern District of New York, James Smith, Assistant Director-in-Charge, New York Field Office (FBI), and Thomas Fattorusso, Special Agent-in-Charge, New York Field Office, Internal Revenue Service – Criminal Investigations (IRS CI), announced the guilty plea.
“As he admitted today, Marat Lerner turned the victims’ American dreams into a nightmare by promising mortgage and debt relief, and instead preyed on their hard-earned life savings for his own personal gain,” stated United States Attorney Peace. “My Office will continue to protect immigrant communities against those who choose to use their positions of trust to defraud and steal from them.”
“Marat Lerner operated as an underground broker in his local community; but instead of completing his end of the bargain by paying their mortgages, he pocketed the money of his unsuspecting victims to live a life of luxury. This wasn’t just a money scam, this fraud affected his own community’s homes and families. Those who fell prey to Lerner’s deceit defaulted on their mortgage payments, and some fell into foreclosure. Today’s guilty plea and agreed restitution is just one step towards his victims getting justice, and his sentencing is the next,” stated IRS CI Special Agent-in-Charge Fattorusso.
According to court documents and facts presented at the guilty plea proceeding, Lerner was the owner of the “Lerner Group,” a business that claimed to provide debt relief services, including mortgage modifications, principally to the Eastern European immigrant community in Brooklyn. Many of the victims that the defendant defrauded were already experiencing financial hardship and had specifically sought Lerner’s assistance to help reduce their monthly mortgage payments. Lerner, in turn, promised that he could help them lower their monthly mortgage payments by working with their mortgage lenders to secure a mortgage loan modification or federal homeowner assistance. To carry out his fraud, Lerner instructed the victims that he needed access to their bank accounts so that he could directly transmit payments to the mortgage banks on the victims’ behalf, and that the payments would be addressed to either an escrow agent that would hold the funds until their mortgages had been modified, or to entities affiliated with their mortgage lenders. Lerner further instructed the victims not to contact their mortgage lenders directly and that he would serve as the liaison between the victims and the victims’ lenders.
In reality, Lerner stole over $2.5 million from the victims – money that the victims had intended to use to pay their mortgages. Once Lerner gained access to the victims’ bank accounts, Lerner transmitted funds from their accounts to companies and/or bank accounts that he himself controlled. Lerner kept the majority of the victims’ money, spending it on personal and business expenses, including a BMW, luxury goods, and expensive meals. To conceal his fraud, Lerner told the victims to disregard notifications from their mortgage lenders regarding delinquent payments and past due balances.
In January 2023, Lerner was indicted by a federal grand jury in the Eastern District of New York and arrested in connection with the above fraud. Pursuant to an order of the United States District Court for the Eastern District of New York, Lerner was released on bail and instructed, among other things, not to commit additional crimes. However, Lerner continued to steal from his victims even after being arrested for the same conduct. After his arrest in this case, between January 2023 and May 2023, Lerner stole at least $10,000 from his victims. Lerner’s bail was subsequently revoked.
As a result of Lerner’s years-long fraud, mortgage lenders have initiated foreclosure proceedings against several of the victims. As part of his guilty plea, Lerner has agreed to pay approximately $2,554,217.11 in restitution to the victims.
The government’s case is being handled by the Office’s Business and Securities Fraud Section. Assistant United States Attorneys Nicholas Axelrod and Genny Ngai are prosecuting the case with assistance from Paralegal Specialist Jacob Menz.
The Defendant:
MARAT LERNER
Age: 41
Brooklyn, New YorkE.D.N.Y. Docket No. 23-CR-15 (NGG)
Two Iranian Nationals Charged with Conspiring to Provide Sanctioned Technology to the Government of IranRead the Press Release
An indictment was filed today in federal court in Brooklyn charging Abolfazl Bazzazi and Mohammad Resa Bazzazi, father and son respectively, with conspiring to illegally export U.S. goods and technology to end users in Iran, including the Government of Iran, in violation of the International Emergency Economic Powers Act (IEEPA), and with attempted smuggling of U.S. goods and technology to Iran. The defendants, who are citizens of Iran, remain at large.
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 Brian Dugan, Special Agent-in-Charge, Federal Bureau of Investigation, Norfolk Field Office, announced the indictment.
“As alleged, the Bazzazis devised an intricate scheme to evade U.S. export laws in obtaining U.S. equipment and technology to be exported to Iran for the Government of Iran which has been designated by the United States government as a state sponsor of terrorism. The defendants allegedly attempted to obtain commercial and military aircraft items from multiple U.S. companies that supply the military, aerospace, and firefighting industries,” stated United States Attorney Peace. “These charges demonstrate the resolve of this Office and the Department of Justice to prosecute those who seek to aid the Government of Iran, in violation of U.S. sanctions.”
“In its first year, the Disruptive Technology Strike Force has strengthened enforcement and disrupted numerous criminal schemes to smuggle highly-sensitive technology that foreign adversaries wield to advance their military and other malign agendas,” stated Assistant Attorney General Olsen. “The case announced today underscores the commitment of the Justice Department and our partners to disrupt illegal efforts to siphon off U.S. ingenuity and to safeguard American security and innovation.”
“Our foreign adversaries use many tactics to gain access to critical U.S. technologies and innovation. In this instance, it’s alleged that the Bazzazi’s illegally attempted to export U.S. goods and technology to the Iranian government. Any circumvention of U.S. export control law is simply unacceptable. The FBI will continue to work diligently with its partners across the globe to hold all accountable who jeopardize national security,” stated FBI Special Agent-in-Charge Dugan.
As set forth in the indictment, between January 2008 and August 2019, the Bazzazis and their co-conspirators sought to evade U.S. sanctions and export laws by working to procure goods and technology from U.S. companies for end users in Iran, including the Government of Iran, without obtaining required licenses or other authorization from the U.S. Department of the Treasury’s Office of Foreign Assets Control. The defendants sought to obtain components that could be used for commercial and/or military aircraft. Additionally, they disguised the final destination of U.S. goods by attempting to forward them through intermediaries in Europe and elsewhere. The Bazzazis acted on behalf of an arm of the Government of Iran, which has been designated by the United States government as acting for or on behalf of terrorist organizations.
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.
The government’s case is being handled by Assistant United States Attorneys Francisco J. Navarro, Jonathan P. Lax, Nomi D. Berenson, and Adam Amir, with assistance provided by Trial Attorney Adam Small of the Justice Department’s Counterintelligence and Export Control Section.
Defendants:
ABOLFAZI BAZZAZI
Age: 79
IranMOHAMMAD RESA BAZZAZI
Age: 43
IranE.D.N.Y. Docket No.: 24-CR-60 (DG)
Six Defendants Charged with Defrauding Court-Appointed Criminal Defense AttorneysRead the Press Release
Earlier today, at the federal courthouse in Brooklyn, two indictments were unsealed charging six defendants with defrauding court-appointed criminal defense attorneys. As alleged in the indictments, the defendants deposited stolen checks intended to reimburse the attorneys for their time and expenditures representing indigent defendants in federal court. Three defendants also allegedly stole the identity of an attorney and opened bank accounts using the attorney’s stolen identity. Five defendants are scheduled to be arraigned this afternoon before United States Magistrate Judge Taryn A. Merkl at the federal courthouse in Brooklyn. One defendant is still at large.
Today’s indictments are the first charges brought in the government’s ongoing criminal investigation into the widespread theft and depositing of checks issued to participants in the federal criminal justice system. The investigation has identified over $1 million in checks issued by the Department of the Treasury on behalf of the Administrative Office of the United States Courts that have been stolen and deposited into unauthorized accounts since 2021. The intended recipients of these checks include court-appointed criminal defense attorneys, paralegals, investigators, translators, court reporters, and jurors.
Breon Peace, United States Attorney for the Eastern District of New York, Daniel Brubaker, Inspector-in-Charge, United States Postal Inspection Service, New York Division (USPIS) and Tammy Whitcomb Hull, Inspector General, United States Postal Service Office of Inspector General (USPS OIG) announced the charges.
Mr. Peace expressed his appreciation for the New York City Police Department and United States Marshals Service for their assistance in this case.
Overview
The stolen checks charged in the two indictments were intended to pay private attorneys who serve on the Criminal Justice Act (CJA) Panel in the Eastern and Southern Districts of New York. When a criminal defendant cannot afford an attorney, the court often appoints a member of the CJA Panel to handle the representation. The Department of the Treasury issues checks to the CJA attorney on behalf of the Administrative Office of the United States Courts, which is sent by mail to the CJA attorney’s address of record. In particularly complex criminal cases, reimbursement checks can exceed $100,000. When a reimbursement check is lost or stolen, issuance of a replacement check typically takes several months—a process that leaves the CJA attorneys uncompensated for a significant time as they await a new check.
United States v. Tyquan Robinson, Ada Tavarez, and Markel Washington
As alleged in the indictment and court documents, Ada Tavarez impersonated a CJA attorney and then opened bank accounts using that CJA attorney’s stolen identity. In or about June 2023, Tavarez presented fraudulent identification documents to a bank teller with the CJA attorney’s personal data, including a driver’s license with Tavarez’s photograph along with the CJA attorney’s name and birthdate. On the account opening paperwork, Tavarez listed a fraudulent email account containing the CJA attorney’s personal identifiers in the email account name.
After the bank opened the accounts in the name of the CJA attorney, Tavarez returned to the branch several days later. She then attempted to deposit a stolen $125,386.81 check containing a forged signature for the CJA attorney.
The defendants Markel Washington and Tyquan Robinson facilitated this scheme with Tavarez. Washington accessed the fraudulent bank accounts online. When the bank placed a hold on the check, Washington made several calls to the bank asking that the funds be released. Also, saved in Washington’s iCloud account were several versions of the same photograph of Tavarez printed on the fraudulent driver’s license with the CJA attorney’s name and personal data.
Robinson contributed to this scheme by accessing the fraudulent email account that had been created using the CJA attorney’s personal identifiers and submitted to the bank at account opening. Robinson also listed his telephone number as the fraudulent email account’s recovery telephone number. In addition, a note in Robinson’s iCloud account contained the CJA attorney’s personal data.
The defendants have been charged with bank fraud and conspiracy to commit wire fraud and bank fraud. Tavarez has also been charged with one count of aggravated identity theft.
United States v. Nicholas Barton, et al.
As alleged in the indictment and court documents, between at least November 2020 and October 2022, the defendants Nicholas Barton, Richard Reid and a third co-defendant participated in a scheme to cash checks issued to third parties into accounts over which the defendants had access and control. One of the stolen checks they deposited was issued to a CJA attorney in the amount of $14,856. After the CJA attorney’s stolen check was cashed in Reid’s bank account, all three defendants benefited from its proceeds, by withdrawing cash from ATMs, making purchases at stores and restaurants, transmitting payments among each other and to others through cash transfer mobile applications, and booking flight tickets. Each defendant has been charged with conspiracy to commit wire fraud and bank fraud; wire fraud; and bank fraud.
The charges in the indictments are merely allegations, and the defendants are presumed innocent unless and until proven guilty.
Assistant United States Attorney James R. Simmons is in charge of the prosecutions, with assistance from EDNY Special Agents Anthony Cunder and Rebecca Sidhu.
The Defendants:
TYQUAN ROBINSON
Age: 29
East Orange, New JerseyADA TAVAREZ
Age: 58
Bronx, New YorkMARKEL WASHINGTON
Age: 28
Bronx, New YorkE.D.N.Y. Docket No. 24-CR-51 (AMD) (LB)
NICHOLAS BARTON
Age: 27
Brooklyn, New YorkRICHARD REID
Age: 26
New York, New YorkE.D.N.Y. Docket No. 24-CR-49 (NRM)(RML)
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Couple Charged with Fentanyl Distribution ConspiracyRead the Press Release
Earlier today, in federal court in Central Islip, a complaint was unsealed charging Levar Jackson and Jaclyn Misuraca with conspiring to distribute fentanyl. As alleged, Jackson and Misuraca sold approximately 270 grams of fentanyl—often in broad daylight and in public locations across Long Island including outside of a nursing home where Misuraca worked. They are being arraigned this afternoon before Magistrate Judge James M. Wicks.
Breon Peace, United States Attorney for the Eastern District of New York, Frank A. Tarentino III, Special Agent-in-Charge, Drug Enforcement Administration (DEA), New York Division, and Robert Waring, Acting Commissioner, Suffolk County Police Department, announced the charges.
Mr. Peace expressed his appreciation to the Nassau County Police Department and the New York State Police for their assistance on the case.
As alleged in the complaint and court filings, between May 2023 and January 2024, Jackson and Misuraca sold approximately 270 grams of fentanyl—often in broad daylight and in public locations across Long Island, including in residential areas and outside of stores. In several transactions, Misuraca sold significant quantities of fentanyl to an undercover officer in the parking lot of the nursing home where she worked. When the undercover officer arrived, Misuraca exited the nursing home, completed the sale, and then returned to work inside.
Several fentanyl doses sold by the defendants tested positive for xylazine, an animal tranquilizer that is of similar potency to fentanyl but not susceptible to treatment with Narcan, a medication that can reverse overdoses. Known by its street names “tranq” and the “zombie drug,” xylazine can cause users to blackout in a stupor and kill skin tissue by burning the flesh, which leads to deep sores.
According to the DEA, fentanyl is approximately 100 times more potent than morphine and 50 times more potent than heroin as an analgesic. From 2011 through 2021, fatal overdoses associated with misuse of clandestinely produced fentanyl and fentanyl analogs increased markedly. According to the Centers for Disease Control and Prevention (CDC), overdose deaths involving synthetic opioids, excluding methadone were involved in roughly 2,600 drug overdose deaths each year in 2011 and 2012, but from 2013 through 2021, the number of drug overdose deaths involving synthetic opioids, excluding methadone increased dramatically each year, to more than 68,000 in 2021. The total number of overdose deaths for this category was greater than 258,000 for 2013 through 2021. Overdose deaths involving synthetic opioids are primarily driven by illicitly manufactured fentanyl, including fentanyl analogs.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorneys Mark E. Misorek and James R. Simmons are in charge of the prosecution.
The Defendants:
LEVAR JACKSON
Age: 44
Islip Terrace, New YorkJACLYN MISURACA
Age: 45
Islip Terrace, New YorkE.D.N.Y. Docket No. 24-MJ-112
Illinois Man Indicted for Multi-Million Dollar Ponzi SchemeRead the Press Release
Earlier today, in federal court in Brooklyn, Alan John Hanke, the sole member of IOLO Capital (IOLO), was arraigned before United States Magistrate Judge Joseph A. Marutollo on a nine-count indictment charging him with securities fraud conspiracy, wire fraud conspiracy, money laundering conspiracy, wire fraud, bankruptcy fraud, and filing a false bankruptcy declaration, in connection with schemes to induce investors to purchase speculative investments, to misappropriate the funds, and then to use the bankruptcy system to discharge his debts to his victims. Hanke was arrested on January 25, 2024, in Cape Canaveral, Florida, as he was boarding an international cruise. The defendant made his initial appearance on January 26, 2024 in United States District Court for the Middle District of Florida and was released on a $250,000 bond.
Breon Peace, United States Attorney for the Eastern District of New York, James Smith, Assistant Director-in-Charge, Federal Bureau of Investigation (FBI), New York Field Office, and David Walker, Special Agent-in-Charge, FBI, Tampa Field Office, announced the arrest and charges.
“As alleged, the victims trusted Hanke with millions of dollars for what they were assured would be safe investments,” stated United States Attorney Peace. “In reality, the defendant deceived the victims and used their money to enrich himself with vacations and a luxury car, and then sought to abuse bankruptcy proceedings to shield his ill-gotten gains. This Office will hold the defendant accountable for his criminal acts of greed and dishonesty and seek justice for his victims.”
Mr. Peace thanked the Office of the United States Trustee for the Northern District of Illinois and the United States Attorney’s Office for the Middle District of Florida for their assistance in the matter.
"Alan Hanke took a gamble by allegedly defrauding investors out of millions of dollars, which he ultimately used to fund his own personal expenses while also lying to bankruptcy court. Hanke’s luck eventually ran out. He will now be forced to answer for his alleged false promises, lies, and misrepresentations. You can bet the FBI will continue to make sure swindlers face just punishment for their attempted frauds," stated FBI Assistant Director-in-Charge Smith.
As alleged in the indictment, between November 2018 and August 2021, Hanke persuaded numerous investors, often in meetings in New York City, to invest in IOLO or related Hanke-run companies. Hanke promised investors high returns within short periods of time by investing in, among other things, “standby letters of credit,” “medium term notes,” and “high yield bonds.” Hanke also assured investors that their investments would be insured against losses. However, nearly all of the money that the victims invested with Hanke went to the defendant’s personal expenses, including cruises, airfare, hotels, gambling expenses, and a luxury car. Hanke also paid co-conspirators and other investors with money that he wrongfully obtained during the scheme. The indictment further alleges that Hanke filed a bankruptcy petition in June 2021 in Illinois, in which he sought to discharge the debts that he owed to his victims. In the bankruptcy petition, Hanke disclosed that he was paid monthly Social Security and Disability checks, but did not disclose the millions of dollars of income he received from his victims. Hanke also did not disclose the proceeds from the sale of an airplane, or that he used the proceeds for personal expenses, including gambling and repairs to a close relative’s home, as well as $180,000 that was withdrawn in cash.
If convicted, Hanke faces a maximum sentence of 20 years’ incarceration on the wire fraud, wire fraud conspiracy, and money laundering conspiracy counts and five years’ imprisonment on the securities fraud conspiracy, bankruptcy fraud, and false bankruptcy declaration charges.
The charges in the indictment are allegations, and Hanke is presumed innocent unless and until proven guilty.
The government’s case is being handled by the Office’s Business and Securities Fraud Unit. Assistant United States Attorneys Nicholas J. Moscow and Matthew Skurnik are in charge of the prosecution, with assistance from Paralegal Specialist Madison Bates.
The Defendant:
ALAN JOHN HANKE
Age: 50
Crystal Lake, IllinoisE.D.N.Y. Docket No. 24-CR-27 (RER)
Former Brooklyn Tax Preparer Pleads Guilty in False Return SchemeRead the Press Release
Earlier today, in federal court in Brooklyn, Melinda Jacob, the former owner of a tax preparation business, pleaded guilty to a criminal Information charging her with the preparation of false tax returns. The proceeding was held before United States Magistrate Judge James R. Cho. When sentenced, Jacobs faces a maximum penalty of three years in prison as well as restitution and monetary penalties.
Breon Peace, United States Attorney for the Eastern District of New York, and Thomas Fattorusso, Special Agent-in-Charge, Internal Revenue Service Criminal Investigation (IRS-CI), announced the guilty plea.
“With the tax season upon us, today’s guilty plea underscores the message that tax preparers have an obligation to perform their duties honestly, and when they abuse their position by filing false information that defrauds the IRS, the return will be a felony conviction like this and additional penalties,” stated United States Attorney Peace.
“While most tax preparers are reputable, it is the bad apples like Melinda Jacob who spoil the bunch. She took advantage of her role and her clients by using their returns to steal money from the government. Jacob’s plea puts her a step closer the consequences of her dishonesty and deceit,” stated IRS-CI Special Agent-in-Charge Fattorusso.
Jacob owned and operated Melinda Jacob Tax Services, a tax preparation business located in her home in Brooklyn, New York. Between 2019 and 2022, Jacobs prepared false and fraudulent Forms 5695 for multiple clients. Form 5695 was an IRS form on which a taxpayer reported expenditures or costs associated with clean energy or energy efficient improvements to their home, and claimed one or both of the “Residential Clean Energy Credit” and the “Energy Efficient Home Improvement Credit” against their tax liability. A Form 5695, where applicable, is filed as an attachment to a taxpayer’s Form 1040. Jacob inflated her clients’ tax refunds by preparing and submitting to the IRS false tax returns that claimed fictitious expenses relating to solar water heaters and geothermal heat pumps that resulted in the clients receiving fraudulent Residential Energy Credits. In most cases, Jacob made up the energy expenses listed on her clients’ tax returns and did not discuss the Residential Energy Credit with her clients. As a result of these false Forms 5695, the IRS suffered an aggregate tax loss of approximately $1,151,761.
The case is being prosecuted by Assistant United States Attorney Raffaela S. Belizaire.
The Defendant:
Melinda Jacob
Age: 48
Lake Mary, FloridaE.D.N.Y. Docket No. 24-CR-35 (RER)
Man Sentenced for over $600M Health Care Fraud, Wire Fraud, and Identity Theft SchemeRead the Press Release
A New York man was sentenced today to 12 years in prison and ordered to pay over $336 million in restitution for a years-long fraud scheme in which he and his co-conspirators, including physicians throughout the country, defrauded multiple health insurance companies out of hundreds of millions of dollars.
According to court documents and evidence presented at trial, Mathew James, 54, of East Northport, operated medical billing companies to provide billing services for physicians — primarily plastic or orthopedic surgeons throughout the United States — and used his companies to carry out a massive scheme to defraud insurance companies. As a third-party medical biller, James submitted claims to insurance companies and, when necessary, requested reconsideration or appeals of denied claims, typically earning a percentage of the amount paid by the insurance companies. The evidence showed that James billed for procedures that were either more serious or entirely different than those his doctor-clients performed. In addition, James made thousands of calls in which he impersonated patients and patients’ relatives to induce insurance companies to reconsider denied claims or pay more on approved claims, resulting in tens of millions of dollars in additional reimbursement to his doctor-clients and from which he received a percentage of the fraudulent proceeds.
James also directed his doctor-clients to schedule elective surgeries through the emergency room so that insurance companies would reimburse at substantially higher rates. When insurance companies denied the inflated claims, James impersonated patients to demand that the insurance companies pay the outstanding balances of tens or hundreds of thousands of dollars.
A federal jury convicted James on July 13, 2022, of health care fraud, conspiracy to commit health care fraud, wire fraud, and aggravated identity theft.
Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division, U.S. Attorney Breon Peace for the Eastern District of New York, and Assistant Director in Charge James Smith of the FBI New York Field Office made the announcement.
The FBI investigated the case.
Trial Attorney Miriam Glaser Dauermann of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Catherine Mirabile and Antoinette Rangel for the Eastern District of New York prosecuted the case. Assistant U.S. Attorney Tanisha Payne for the Eastern District of New York is handling asset forfeiture.
The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, the program, currently comprised of nine strike forces operating in 27 federal districts, has charged more than 5,400 defendants who collectively have billed federal health care programs and private insurers more than $27 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with Department of Health and Human Services Office of Inspector General, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at www.justice.gov/criminal-fraud/health-care-fraud-unit.
Long Island Man Sentenced to 12 Years in Prison for over $600 Million Health Care Fraud, Wire Fraud and Identity Theft SchemeRead the Press Release
CENTRAL ISLIP, NY – Mathew James was sentenced today by United States District Judge Joanna Seybert to 12 years in prison for a massive health care fraud scheme in which he and his co-conspirators, including physicians throughout the country, defrauded multiple health insurance companies out of hundreds of millions of dollars. James was sentenced to 10 years on the fraud charges and two years to be served consecutive on the aggravated ID theft charges. The Court also ordered restitution in the amount of $336,996,416.85 and forfeiture of $63,382,049.02.
Breon Peace, United States Attorney for the Eastern District of New York, Nicole M. Argentieri, Acting Assistant Attorney General of the Justice Department’s Criminal Division, and James Smith, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the sentence.
“James went to great lengths to carry out a complex fraud scheme that caused insurance companies to pay hundreds of millions of dollars in fraudulent claims,” stated United States Attorney Peace. “The defendant not only falsified medical records and forged signatures, but also brazenly impersonated patients and their family members, all of which justifies a significant jail sentence to deter others from such audacious conduct.”
“Today, Mathew James was justly punished with a lengthy sentence in prison for his immense and brazen health care fraud scheme. James took extreme steps to carry out his more than half-billion-dollar fraud – faking signatures, impersonating well known figures in the world of sports, and utilizing fraudulent documents,” stated FBI Assistant Director-in-Charge Smith. “The FBI will continue to take the lead in investigating and holding accountable anyone attempting to illegally profit from deceptive and fraudulent health care schemes.”
James operated medical billing companies to provide billing services for physicians, primarily plastic surgeons throughout the United States, and used his companies to carry out a massive scheme to defraud insurance companies. As a third-party medical biller, James submitted claims to insurance companies and when necessary, requested reconsideration or appeals of denied claims. James billed for procedures that were either more serious or entirely different than those his doctor-clients performed. For example, the government presented evidence that James impersonated Jeff Pash, the National Football League’s general counsel, and Marcus Smart, a professional basketball player then of the Boston Celtics of the National Basketball Association, in calls the defendant made to insurance companies in which he exaggerated medical procedures. James made thousands of impersonation calls resulting in over tens of millions of dollars in additional reimbursement to his doctor-clients and from which he received a percentage of the fraudulent proceeds.
James also directed his doctor-clients to schedule elective surgeries through the emergency room so that insurance companies would reimburse at substantially higher rates. When insurance companies denied the inflated claims, James impersonated patients to demand that the insurance companies pay the outstanding balances of tens or hundreds of thousands of dollars.
Assistant U.S. Attorneys Catherine Mirabile and Antoinette N. Rangel of the Eastern District of New York, and Trial Attorney Miriam Glaser Dauermann of the Justice Department’s Fraud Section are prosecuting the case. Assistant U.S. Attorney Tanisha Payne of the Eastern District of New York’s Asset Recovery Section is handling forfeiture matters.
The Defendant:
MATHEW JAMES
Age: 54
East Northport, Long IslandE.D.N.Y. Docket No. 19-CR-382 (JS)
Three New Jersey Men Indicted for a Violent Kidnapping and Extortion Attempt in Astoria, QueensRead the Press Release
Earlier today, in federal court in Brooklyn, a superseding indictment was unsealed charging Aasim Boone, Jarrett Bruce and Lesly Valentin with one count of kidnapping conspiracy and Valentin with one count of transmission of interstate communications with intent to extort. The charged crimes arise from the December 2022 abduction and attack on a victim from the Astoria neighborhood of Queens, New York. Valentin was previously arrested and charged in the underlying indictment with transmission of interstate communications with intent to extort and is currently in custody. Boone was arrested yesterday, and Bruce was arrested today. Both will be arraigned on the superseding indictment this afternoon before United States Magistrate Judge Robert M. Levy. Valentin was previously arrested and is being held in custody pending trial. Valentin will be arraigned on the superseding indictment at a later date.
Breon Peace, United States Attorney for the Eastern District of New York and James Smith, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the arrests and charges.
“As alleged, the crimes in this case are very disturbing. The defendants targeted an unsuspecting victim, abducted him outside of his home and subjected him to unimaginable cruelty—all in their efforts for financial gain,” stated United States Attorney Peace. “My office will continue to work tirelessly to ensure that the victim here receives justice and that our community is safe from these senseless acts of violence.”
Mr. Peace thanked the Joint Violent Crimes Task Force, which is comprised of agents from the FBI and detectives from the NYPD, for their assistance with the investigation.
“A victim subjected to kidnapping, brutal beatings, inhumane torture, and cash demands – this not a plot from a movie – these three defendants allegedly conspired and carried out these despicable acts on their target. The alleged actions of Boone, Bruce, and Valentin are disturbing and will not be tolerated. FBI New York is determined to ensure brazen individuals willing to use inconceivable violence for financial gain are brought to justice,” stated FBI Assistant Director-in-Charge Smith.
As set forth in court filings, Boone, Bruce and Valentin conspired to kidnap the victim on December 9, 2022. The victim was seized from outside of his apartment complex in Astoria. After forcing the victim at gunpoint into a vehicle, the assailants drove the victim to New Jersey, subjected him to escalating forms of torture, and held him for nearly five hours. Among other things, the assailants beat the victim with a gun, poured bleach on him, burned his back and legs with a blowtoch, and also sliced the victim’s ear with a knife. The victim was ultimately released on the Upper East Side of Manhattan. A few days after the kidnapping, one of the defendants—Valentin—sent text messages to the victim, threatening further harm to him and his family if he failed to pay the defendants $150,000 in cash and 50 lbs. of marijuana.
All three defendants have extensive criminal histories, and are believed to have participated in a series of residential burglaries committed by a violent street gang operating out of New Jersey. Valentin had also previously pled guilty in New Jersey state court to aggravated assault in connection with a prior kidnapping.
The charges in the indictment are allegations, and the defendants are presumed innocent unless and until proven guilty. If convicted of kidnapping conspiracy, the defendants face a maximum sentence of life imprisonment.
The government’s case is being prosecuted by Assistant United States Attorneys Joshua B. Dugan and Lorena Michelen.
The Defendants:
AASIM BOONE
Age: 41
Englewood, New JerseyJARRETT BRUCE (also known as “Inf,” “Infinite” and “Infamous”)
Age: 40
Englewood, New JerseyLESLY VALENTIN
Age: 38
Asbury Park, New JerseyE.D.N.Y. Docket No. 23-CR-292 (S-1) (RPK)
Man Pleads Guilty to Bank Secrecy Act Charges in $1B SchemeRead the Press Release
A New York man pleaded guilty today to failure to maintain an anti-money laundering program in violation of the Bank Secrecy Act as part of a scheme to bring lucrative and high-risk international financial business to a small, unsophisticated credit union.
According to court documents, from 2014 to 2016, Gyanendra Asre, 56, of New York, was a member of the supervisory board of the New York State Employees Federal Credit Union (NYSEFCU), a financial institution that was required to have an anti-money laundering program. Through the NYSEFCU and other entities, Asre participated in a scheme that brought over $1 billion in high-risk transactions, including millions of dollars of bulk cash transactions from a foreign bank, to the NYSEFCU.
In addition, Asre was a certified anti-money laundering specialist who was experienced in international banking and trained in anti-money laundering compliance and procedures, and represented to the NYSEFCU that he and his businesses would conduct appropriate anti-money laundering oversight as required by the Bank Secrecy Act. Based on Asre’s representations, the NYSEFCU, a small credit union with a volunteer board that primarily served New York state public employees, allowed Asre and his entities to conduct high-risk transactions through the NYSEFCU. Contrary to his representations, Asre willfully failed to implement and maintain an anti-money laundering program at the NYSEFCU. This failure caused the NYSEFCU to process the high-risk transactions without appropriate oversight and without ever filing a single Suspicious Activity Report, as required by law.
He is scheduled to be sentenced on May 3. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division, U.S. Attorney Breon Peace for the Eastern District of New York, and Acting Special Agent in Charge Erin Keegan of Homeland Security Investigations (HSI) New York made the announcement.
HSI investigated the case.
Acting Chief Margaret Moeser of the Criminal Division’s Money Laundering and Asset Recovery Section (MLARS) and Assistant U.S. Attorneys Ryan C. Harris and Francisco J. Navarro for the Eastern District of New York are prosecuting the case.
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.
Long Island MS-13 Gang Member Sentenced to 520 Months in Prison for Participating in Two Murders, an Attempted Murder and Drug TraffickingRead the Press Release
Earlier today, in federal court in Central Islip, Jonathan Hernandez, also known as “Kraken” and “Travieso,” a member of the Sailors Locos Salvatruchas Westside (Sailors) clique of La Mara Salvatrucha, also known as the MS-13, a transnational criminal organization, was sentenced by United States District Judge Gary R. Brown to 520 months’ imprisonment. Hernandez pleaded guilty in May 2022 to racketeering charges in connection with his participation in the January 28, 2016 murder of Michael Johnson, the April 29, 2016 murder of Oscar Acosta, an attempted murder on August 10, 2016, and a conspiracy to distribute cocaine and marijuana.
Breon Peace, United States Attorney for the Eastern District of New York, James Smith, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Robert Waring, Acting Commissioner, Suffolk County Police Department (SCPD), announced the sentence.
“Today’s sentence is the result of choices the defendant made to commit serious crimes on behalf of the Sailors clique of the MS-13, including the brutal premeditated murders of two young men, assaults with dangerous weapons, attempted murders, and the distribution of drugs,” stated United States Attorney Peace. “The substantial period of incarceration imposed today will protect the public from more crimes committed by the defendant and it is my hope, deter young men from joining this depraved gang.”
“The significant sentence handed down today hopefully provides a sense of justice and closure for the families of the victims murdered by Jonathan Hernandez. The FBI’s Long Island Gang Task Force, along with our law enforcement partners, will remain relentless in our efforts to eliminate the threat posed by MS-13’s barbaric violence,” stated FBI Assistant Director-in-Charge Smith.
“The actions of this murderer were barbaric, lack humanity and robbed families of a loved one,” stated SCPD Acting Police Commissioner Waring said. “This sentence ensures Hernandez will never have an opportunity to brutalize another person again. We will continue to collaborate with our law enforcement partners to disband this criminal enterprise and prioritize the safety of our community.”
According to court filings and statements made during Hernandez’s sentencing and guilty plea proceedings, Hernandez is a member of the Sailors clique of the MS-13 – one of the more powerful, violent, and well-established cliques on the East Coast of the United States – and committed the following crimes in order to maintain or increase his status in the gang:
The January 28, 2016 Murder of Michael JohnsonOn January 28, 2016, the local leader of the Sailors clique and other MS-13 members and associates were at the Jocorena Deli in Brentwood, where they saw 29-year-old Michael Johnson, and claimed to recognize him as a member of the rival Bloods street gang. At that point, Johnson was marked as their “food” – a reference to their intention to kill him.
After receiving the requisite approval from the New York leader of the Sailors clique to commit this murder, Hernandez and several other MS-13 members were contacted by the local clique leader, informed of the plan to kill Johnson and instructed to bring weapons, including a machete and a baseball bat, to a wooded area in Brentwood. Johnson was then lured to that secluded meeting location by the local clique leader under the guise of smoking marijuana. The MS-13 members and associates, including Hernandez, ambushed him from behind – striking Johnson with the baseball bat, stabbing him with a knife, and taking turns hacking him with the machete. They fled after hearing police sirens in the area. Subsequently, Hernandez and other MS-13 associates were promoted in rank for their participation in this murder.
Johnson was reported missing by family members. Less than one week after his murder, on February 2, 2016, members of the SCPD responded to a 911 call about a body found in the woods by a passerby, and recovered Johnson’s body. An autopsy determined Johnson’s cause of death to be sharp and blunt force injuries.
The April 29, 2016 Murder of Oscar AcostaIn early 2016, Hernandez and his fellow Sailors clique members decided to “green light” 19-year-old Oscar Acosta for murder because they suspected that he was associating with the rival 18th Street gang after previously aligning himself with the MS-13. The New York Sailors clique leader assigned roles as to which members would take the lead in planning and carrying out the murder.
On April 29, 2016, a number of MS-13 members met Acosta in a wooded area near an elementary school in Brentwood where he had been lured under the guise of smoking marijuana. They brutally beat Acosta with tree limbs, knocking him unconscious. They bound Acosta’s hands and feet, wrapped an article of clothing around his mouth to prevent him from making noise, and summoned other MS-13 members, including the local Sailors clique leader and Hernandez, who arrived together. The MS-13 members loaded Acosta into the trunk of a car and drove to a more secluded area in Brentwood near the abandoned Pilgrim State Psychiatric Hospital. They removed Acosta, who was still alive, from the car trunk and carried him into the woods where they took turns hacking him to death with a machete. The murder was supervised by the local Sailors clique leaders. The MS-13 members then buried Acosta’s body in a shallow grave.
Acosta’s body was discovered by law enforcement nearly five months later, on September 16, 2016, during a search for another MS-13 victim. His cause of death was homicidal violence, including sharp and blunt force injuries to his head and torso.
The August 10, 2016 Attempted Murder of Rival Gang MembersIn 2016, members of the MS-13 were engaged in a series of disputes with members of the Goon Squad, a rival gang in Brentwood. On August 10, 2016, two armed MS-13 members, including the local leader of the Sailors clique, drove through the neighborhood around Lukens Avenue in Brentwood, and spotted several men who they believed were members of the Goon Squad, outside of a house. The MS-13 members then rallied other members of the Sailors clique, including Hernandez, to kill the rivals.
The MS-13 members divided into two vehicles, and drove towards the house where the suspected Goon Squad members had been spotted. Hernandez and another MS-13 member, armed with a .40 caliber and .45 caliber handgun, exited the car and approached the group of suspected rivals. Both fired numerous shots in their direction. No one was hit, although a stray bullet entered a neighbor’s house and struck the headboard of a bed in which the neighbor was sleeping.
Conspiracy to Distribute Cocaine and MarijuanaFor a year and a half, from approximately April 2016 through October 2017, in order to finance the illegal operations of the Sailors clique, Hernandez and his fellow MS-13 members and associates regularly sold street-level quantities of cocaine and marijuana in Brentwood and its surrounding areas, which they obtained from clique leaders. After the sales, the profits were turned over to the clique leaders, for use in, among other things, purchasing firearms for use by clique members, wiring money to MS-13 leaders in El Salvador and buying additional narcotics for further distribution. A conservative estimate of the amount of marijuana distributed attributable to Hernandez and his clique during this time period is between five and 10 kilograms.
Hernandez was previously sentenced in March 2018 by then-United States District Judge Joseph F. Bianco to 51 months’ imprisonment in connection with his earlier guilty plea to assault with dangerous weapons in aid of racketeering. That conviction related to assaults that Hernandez and several other MS-13 members and associates carried out at athletic fields adjacent to the Brentwood East Elementary and Brentwood East Middle Schools in October 2015. Hernandez and his fellow MS-13 gang members confronted a group of individuals who they suspected of being members of a rival gang, and when that group attempted to leave the area, Hernandez and several other MS-13 members surrounded them and began viciously attacking the group with baseball bats and pipes. Today’s sentence credited Hernandez for the time he spent in custody on the previously-imposed 51-month sentence toward the 520 months’.
Today’s sentence is the latest achievement 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, a violent, transnational criminal organization. The MS-13’s leadership is based in El Salvador, Honduras, Guatemala and Mexico, but the gang has thousands of members across 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 65 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.
This prosecution 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 Long Island Criminal Division. Assistant United States Attorneys Paul G. Scotti, Justina L. Geraci and Megan E. Farrell are in charge of the prosecution.
The Defendant:JONATHAN HERNANDEZ (also known as “Kraken” and “Travieso”)
Age: 26
Brentwood, New YorkE.D.N.Y. Docket No. 16-CR-403 (GRB)
Anti-Money Laundering Specialist Pleads Guilty to Willful Failure to Implement Anti-Money Laundering ControlsRead the Press Release
Earlier today, in federal court in Brooklyn, Gyanendra Asre pleaded guilty to failing to maintain an anti-money laundering program in violation of the Bank Secrecy Act, as part of a scheme to bring lucrative and high-risk international financial business to a small, unsophisticated credit union. Today’s proceeding took place before United States District Judge Diane Gujarati. When sentenced, Asre faces up to 10 years in prison.Earlier today, in federal court in Brooklyn, Gyanendra Asre pleaded guilty to failing to maintain an anti-money laundering program in violation of the Bank Secrecy Act, as part of a scheme to bring lucrative and high-risk international financial business to a small, unsophisticated credit union. Today’s proceeding took place before United States District Judge Diane Gujarati. When sentenced, Asre faces up to 10 years in prison.
Breon Peace, United States Attorney for the Eastern District of New York, Nicole M. Argentieri, Acting Assistant Attorney General of the Justice Department’s Criminal Division, and Erin Keegan, Acting Special Agent-in-Charge, Department of Homeland Security, Homeland Security Investigations, New York (HSI) announced the guilty plea.
“Asre was an experienced anti-money laundering specialist well-versed in the Bank Secrecy Act’s provisions and deliberately ignored these protections, exposing financial institutions to the risk of illicit criminal activity,” stated United States Attorney Peace. “This Office will vigorously enforce these laws to ensure the integrity of the U.S. financial system and to hold responsible those who would deliberately disregard them for financial gain.”
“Gyanendra Asre was specifically trained in proper banking protocols and procedures. Yet, instead of following the necessary steps, the defendant took advantage of a small New York financial institution, which primarily served state employees, to the tune of $1 billion," said HSI New York Acting Special Agent in Charge Erin Keegan. "I commend HSI New York and our law enforcement partners for their dedication to ensuring vitally integral regulations — the foundation of our banking system — are upheld.”
According to court filings, from 2014 to 2016, Asre devised a scheme to bring lucrative and high-risk international financial business lines such as international currency trading to small, unsophisticated financial institutions. Asre was trained in anti-money laundering compliance and procedures, and represented to the financial institutions that, because of his experience and training, he understood the risks associated with the high-risk business lines and would conduct appropriate anti-money laundering oversight as required by the Bank Secrecy Act.
Based on Asre’s representations, the New York State Employees Federal Credit Union (NYSEFCU), a small financial institution with a volunteer board that primarily served New York state public employees, allowed Asre to conduct high-risk transactions through the NYSEFCU. Asre then caused the transfer of more than $1 billion in high-risk transactions, including hundreds of millions of dollars originating from high-risk foreign jurisdictions, through the NYSEFCU and other entities. Asre, who was a certified anti-money laundering specialist with experience in international banking and anti-money laundering compliance and procedures, was a member of the NYSEFCU’s supervisory board during this time period. However, contrary to his representations, Asre willfully failed to implement and maintain the requisite anti-money laundering programs or conduct oversight required to detect, identify and report suspicious transactions. This caused, among other things, the NYSEFCU to process more than $1 billion in high-risk transactions during Asre’s tenure, without ever filing a single Suspicious Activity Report as required by law.
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 mail and wire fraud, bank fraud, health care fraud, tax fraud, securities and commodities fraud, and identity theft.
The government’s case is being handled by the Office’s International Narcotics and Money Laundering Section, in coordination with the Office’s Bank Integrity Task Force, which is charged with investigating and charging corporate and individual actors who launder criminal proceeds using the U.S. banking system and enforcing anti-money laundering controls under the Bank Secrecy Act. Assistant United States Attorneys Ryan C. Harris and Francisco J. Navarro of the Eastern District of New York are prosecuting the case with Acting Chief Margaret Moeser of the Criminal Division’s Money Laundering and Asset Recovery Section. The investigation is being conducted by HSI’s El Dorado Task Force in New York.
The Defendant:
GYANENDRA ASRE
Age: 56
Greenwich, ConnecticutE.D.N.Y. Docket No. 21-CR-174 (DG)
17 Eastern District of New York Employees and Two Former Assistant U.S. Attorneys Receive 2022 and 2023 Attorney General AwardsRead the Press Release
WASHINGTON – Fourteen Assistant United States Attorneys (AUSAs), two paralegal specialists, a Special Agent and two former AUSAs from the Eastern District of New York (EDNY) were recognized by Attorney General Merrick B. Garland for their extraordinary public service at the 70th and 71st Attorney General’s Awards Ceremony. Recipients from both 2022 and 2023 were selected from a group of more than 800 nominees.
“Each of today’s recipients has served with distinction, and in so doing, they have enabled the Justice Department to advance its work on behalf of the American people,” stated Attorney General Merrick B. Garland. “Their exceptional leadership, heroism, and dedication have benefited people and communities across the country.”“The outstanding work of EDNY attorneys, professional staff and our law enforcement partners in service to our district and our country, has been breathtaking, prosecuting complex economic crime, high-level drug trafficking, foreign terrorism, insurrection, cybercriminals and litigating the expert defense of our cases appealed to the Second Circuit,” stated United States Attorney Breon Peace. “Their excellence and dedication are boundless, and as a result, they have made the world, a safer place.”
This year’s program honors individuals across the department and our federal, state, local, and tribal partners for their selfless efforts, protecting our national security and our civil rights, addressing rising violent crime in our communities, and prosecuting gangs and those trafficking in dangerous narcotics and human beings. The awards also honor the work of civil and environmental litigation, which enforces the rule of law and upholds our Constitution. They also recognize employees whose ideas and efforts save taxpayer dollars and help our government operate more effectively and efficiently, among other contributions to public safety and good governance.
70th Annual Attorney General AwardsThe Attorney General’s Award for Outstanding Work in the Investigation, Extradition and Prosecution of ISIS Senior Leader
United States v. Kandic
AUSAs Matt Haggans and Saritha Komatireddy, former AUSA Josh Hafetz and Paralegal Specialist Huda Abouchaer, together with law enforcement partners from the FBI and HSI, are being recognized for their outstanding work obtaining a trial conviction of Mirsad Kandic of Brooklyn, on charges of conspiring to provide, and providing material support to the Islamic State of Iraq and al-Sham (ISIS). Kandic was a high-ranking member of ISIS, a designated foreign terrorist organization. He had multiple responsibilities within ISIS, including recruiting foreign fighters, trafficking foreign fighters from the West through Turkey and into Syria, and obtaining weapons, military equipment, maps, money and false identifications for ISIS fighters. In carrying out these responsibilities, Kandic worked directly with ISIS emirs and battlefield commanders.
The Attorney General’s Award for Distinguished Service for 35 Years of Outstanding Work in Litigating Criminal Cases Before the Second Circuit Court of Appeals
AUSA David James
Throughout AUSA David James’s 35-year career with the U.S. Attorney’s Office for the Eastern District of New York, he has represented the government in the Second Circuit in hundreds of cases with skill and dedication. He has worked on some of the most significant and important appeals of the last few decades, from John Gotti in 1993 to Joaquin Guzman-Loera, aka “El Chapo,” in 2022.
The Attorney General’s Award for Exceptional and Successful Work in the Trial Against Roger Ng
United States v. Roger Ng
AUSAs Alixandra Smith, Drew Rolle and Dylan Stern, in partnership with colleagues from DOJ’s Fraud Section and Money Laundering and Asset Recovery Section, are recognized for securing the trial conviction of Roger Ng, a former managing director of the Goldman Sachs Group Inc. (Goldman Sachs) for his role in a multibillion-dollar bribery and money laundering scheme involving Malaysia’s state-owned investment and development fund, 1Malaysia Development Berhad. As part of the scheme, Ng and his co-conspirators, including Tim Leissner, the former Southeast Asia Chairman and participating managing director of Goldman Sachs, paid more than $1 billion in bribes to 12 government officials in Malaysia and the United Arab Emirates to obtain and retain lucrative business for Goldman Sachs. They also conspired to, and did, launder the proceeds of their criminal conduct through the U.S. financial system, including funding major Hollywood films such as “The Wolf of Wall Street.”
The Attorney General’s Award for Outstanding Entrepreneurism and Dedication in the Criminal Prosecution in the Digital Advertising Industry Inflicted by Foreign Cybercriminals
United States v. Zhukov
AUSAs Saritha Komatireddy, Alex Mindlin and Artie McConnell brought a first-of-its-kind prosecution, exposing rampant fraud in the digital advertising industry inflicted by foreign cybercriminals seeking to steal from American companies and weaken American economic power. This case exposed a fraud that affected nearly every American business and consumer and converted America’s own internet infrastructure and innovations into weapons for cybercrime. The prosecution led to significant reforms and increased security controls among digital advertising platforms, cybersecurity companies and the entities that run the global registration system for IP addresses. The team secured the indictment of 10 cybercriminals from two separate international cybercrime rings and the conviction of five of those cybercriminals, including the leader of each ring.
71st Annual Attorney General AwardsAttorney General’s Award for Distinguished Service
U.S. v. Garcia Luna Trial Team
AUSAs Saritha Komatireddy, Phil Pilmar, Adam Amir, Erin Reid and Ryan Harris, EDNY Special Agent George Dietz, Paralegal Specialists Huda Abouchaer and Melissa Bennett, together with law enforcement partners from DEA and HSI, successfully investigated and obtained a trial conviction against the former Mexican cabinet official Genaro Garcia Luna for his corrupt assistance to the Sinaloa Cartel, one of the largest and most violent criminal organizations in the world. Garcia Luna is the highest-ranking Mexican government official to have been prosecuted in a U.S. court. The six-week trial included testimony from high-level Sinaloa Cartel leaders, Mexican public officials who had themselves engaged in corruption, former Mexican law enforcement officers who worked under Garcia Luna, and a former U.S. Ambassador.
Operation Disruptive Capture
United States v. Orekhov et al. and United States v. Grinin et al.
AUSAs Artie McConnell and Madeline O’Connor and SAUSA Scott Claffee teamed with law enforcement partners from FBI and DOJ task forces to disrupt Russia’s ability to illegally acquire sensitive U.S. technology and enforce sanctions imposed on Russia for their invasion of Ukraine. The initiative resulted in two indictments involving charging 15 defendants and arrests in Germany, Italy, Estonia, and France. The investigation also led to administrative enforcement actions, civil forfeiture involving millions of dollars in multiple foreign jurisdictions, and additional sanctions against individuals and companies.
The Attorney General’s Award for Excellence in Furthering the Interests of U.S. National Security Operation Medusa
Former AUSA Ian Richardson
Through Operation MEDUSA, former EDNY AUSA Ian Richardson, together with the FBI, completed a court-authorized operation to disrupt a global peer-to-peer network of computers compromised by sophisticated malware, called “Snake,” that the United States Government attributes to a unit within Center 16 of the Federal Security Service of the Russian Federation. For nearly 20 years, this unit, referred to in court documents as “Turla,” used versions of the Snake malware to steal sensitive documents from hundreds of computer systems in at least 50 countries, which have belonged to North Atlantic Treaty Organization member governments, journalists, and other targets of interest to the Russian Federation. After stealing these documents, Turla exfiltrated them through a covert network of unwitting Snake-compromised computers in the United States and around the world. Operation MEDUSA disabled Turla’s Snake malware on compromised computers through the use of an FBI-created tool named PERSEUS, which issued commands that caused the Snake malware to overwrite its own vital components.
January 6th Proud Boys Prosecution Team
AUSA Nadia Moore
EDNY AUSA Nadia Moore was a vital member of the trial team, which included prosecutors from the U.S. Attorney’s Office in D.C. and the Organized Crime and Gang Section, and agents from the FBI, that secured convictions against five members of the Proud Boys for their actions before and during the breach of the U.S. Capitol on Jan. 6, 2021. According to the trial evidence, in the months leading up to Jan. 6, the defendants plotted to oppose by force the lawful transfer of presidential power, and to prevent the Members of Congress, and the federal law enforcement officers who protect them, from discharging their duties.Woman Sentenced for Leadership Role in Visa Fraud, Identity Theft, and Human Smuggling SchemeRead the Press Release
A New York woman was sentenced today to two years and one month in prison for her role in a multi-year visa fraud, identity theft, and immigrant smuggling conspiracy that brought Armenian citizens into the United States for profit.
According to court documents, Stella Boyadjian, 53, of Rego Park, led a transnational network of co-conspirators who engaged in a widespread visa fraud scheme to bring Armenian citizens into the United States by fraudulently claiming to the U.S. Citizenship and Immigration Services (USCIS) that the Armenians were members of performance groups, and thus qualified for P-3 “Culturally Unique Artist” visas. The P-3 nonimmigrant visa classification allows foreign nationals to temporarily travel to the United States to perform, teach, or coach as artists or entertainers, under a program that is culturally unique. A U.S. employer or sponsoring organization is required to submit a USCIS Form I-129 Petition for a Non-Immigrant Worker, along with supporting documentation, attesting that the performances in the United States are culturally unique.
Boyadjian ran a non-profit organization called Big Apple Music Awards (BAMA) Foundation based in Rego Park. She used the BAMA Foundation as well as formal and informal music industry contacts in the United States and Armenia to perpetuate the scheme. Boyadjian and others solicited Armenian citizens who wanted to come to the United States and charged them between $3,000 and $15,000 for P-3 visas facilitated by Boyadjian and others submitting fraudulent Form I-129 Petitions to the USCIS. To accomplish this, Boyadjian and other associates in Armenia acquired fraudulent performer certificates and organized staged photo sessions where the aliens wore traditional Armenian folk outfits to appear to be traditional Armenian performers. After being trained by Boyadjian and her conspirators on how to answer questions from USCIS visa adjudicators, the individual aliens presented these certificates and photos to U.S. consular officers during their visa interviews. Once the Armenians entered the United States, some would pay Boyadjian and her associates additional money to be included in another fraudulent petition asking for P-3 visa extensions. Some aliens overstayed their visas and remain unlawfully in the United States.
Boyadjian previously pleaded guilty in March 2019 to one count of conspiracy to defraud the United States, commit visa fraud, and unlawfully bring aliens to the United States, one count of visa fraud, and one count of aggravated identity theft.
Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division, U.S. Attorney Breon Peace for the Eastern District of New York, and Director of the Diplomatic Security Service (DSS) Carlos F. Matus made the announcement.
The DSS’ Criminal Fraud Investigations and Overseas Criminal Investigations Divisions investigated the case, with assistance from the USCIS Fraud Detection and National Security, Center Fraud Detection Operations in Vermont.
Deputy Chief Rami S. Badawy of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorney John O. Enright for the Eastern District of New York prosecuted the case.
Queens Woman Sentenced to 25 Months in Prison for Leadership Role in Visa Fraud, Identity Theft and Human Smuggling SchemeRead the Press Release
BROOKLYN, NY – Earlier today, in federal court in Brooklyn, Stella Boyadjian was sentenced by United States Chief District Judge Margo K. Brodie to 25 months in prison for her role in a multi-year visa fraud, identity theft, and immigrant smuggling conspiracy that brought Armenian citizens into the United States for profit. Boyadjian pleaded guilty in March 2019 to conspiracy to defraud the United States, commit visa fraud, and unlawfully bring aliens to the United States, visa fraud and aggravated identity theft.
Breon Peace, United States Attorney for the Eastern District of New York, Nicole M. Argentieri, Acting Assistant Attorney General of the Justice Department’s Criminal Division, and Carlos F. Matus, Director of the U.S. Department of State’s Diplomatic Security Service (DSS), announced the sentence.
Boyadjian led a transnational network of co-conspirators who engaged in a widespread visa fraud scheme to bring Armenian citizens into the United States by fraudulently claiming to the U.S. Citizenship and Immigration Services (USCIS) that the Armenians were members of performance groups and thus qualified for P-3 “Culturally Unique Artist” visas. The P-3 nonimmigrant visa classification allows foreign nationals to temporarily travel to the United States to perform, teach, or coach as artists or entertainers, under a program that is culturally unique. A U.S. employer or sponsoring organization is required to submit a USCIS Form I-129 Petition for a Non-Immigrant Worker, along with supporting documentation, attesting that the performances in the United States are culturally unique.
Boyadjian ran a non-profit organization called Big Apple Music Awards (BAMA) Foundation based in Rego Park, Queens. She used the BAMA Foundation as well as formal and informal music industry contacts in the United States and Armenia to perpetuate the scheme. Boyadjian and others solicited Armenian citizens who wanted to come to the United States and charged them between $3,000 and $15,000 to be included on the Form I-129 Petitions. Boyadjian and other associates in Armenia acquired fraudulent performer certificates and organized staged photo sessions where the aliens wore traditional Armenian folk outfits to appear to be traditional Armenian performers. After being trained by Boyadjian and her conspirators on how to answer questions from USCIS visa adjudicators, the individual aliens presented these certificates and photos to U.S. consular officers during their visa interviews. Once the Armenians entered the United States, some would pay Boyadjian and her associates additional money to be included in another fraudulent petition asking for P-3 visa extensions. Some aliens overstayed their visas and remained unlawfully in the United States.
The DSS’ Criminal Fraud Investigations and Overseas Criminal Investigations Divisions investigated the case, with assistance from the USCIS Fraud Detection and National Security, Center Fraud Detection Operations in Vermont.
Assistant United States Attorney John O. Enright of the Eastern District of New York and Rami S. Badawy, Chief of the Criminal Division’s Human Rights and Special Prosecutions Section are in charge of the prosecution.
The Defendant:
STELLA BOYADJIAN
Age: 53
Rego Park, Queens
E.D.N.Y. Docket No. 18-CR-57 (MKB)Eastern District of New York U.S. Attorney's Office Joins in Collections of Nearly $1.8 Billion in Criminal and Civil Actions in Fiscal Year 2023Read the Press Release
United States Attorney Breon Peace announced today that the Eastern District of New York collected a total of $1,787,750,466.06 in criminal and civil actions filed in the Eastern District of New York and in cases in which the Office worked with other U.S. Attorney’s Offices and components of the Department of Justice in Fiscal Year 2023. Of this amount, $273,839,971.81 was collected in criminal actions and $1,513,910,494.25 was collected in civil actions.
“I take great pride in the Eastern District’s substantial recoveries in Fiscal Year 2023, which is the result of our team’s strong commitment to justice and holding wrongdoers accountable for their crimes and misconduct,” stated United States Attorney Peace. “Providing restitution to victims of crime is also an important step in remedying the harm they have suffered and reaching some closure.”
The U.S. Attorney’s Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the United States and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims Fund, which distributes the funds collected to federal and state victim compensation and victim assistance programs.
FY 2023 Collections Highlight
In August 2023, UBS AG and several of its U.S.-based affiliates agreed to pay $1.435 billion in penalties to settle a civil action filed in November 2018 that alleged misconduct related to UBS’ underwriting and issuance of residential mortgage-backed securities (RMBS) issued in 2006 and 2007. UBS paid the United States $1,435,000,000 in civil penalties in exchange for dismissal of the complaint filed in the action. The settlement resolved the last case brought by a Department of Justice Working Group dedicated to investigating the conduct of banks and other entities for their roles in creating and issuing RMBS leading up to the 2008 financial crisis.
FY 2023 Forfeiture
Additionally, the U.S. Attorney’s Office for the Eastern District of New York, working with partner agencies and divisions, collected over $722,000,000 in asset forfeiture actions last year. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
Justice Department Secures Settlement Agreement with State of New York Executive Chamber to Resolve Sexual Harassment and Retaliation Claims Under Title VIIRead the Press Release
The Justice Department announced today that it has signed an agreement with the State of New York Executive Chamber (Executive Chamber) to resolve the department’s claims that the Executive Chamber under former Governor Andrew Cuomo engaged in a pattern or practice of sexual harassment and retaliation in violation of Title VII of the Civil Rights Act of 1964. The agreement memorializes the reforms already carried out by current Governor Kathy Hochul as well as additional reforms aimed at preventing sexual harassment and retaliation in the Executive Chamber.
Title VII is a federal law that prohibits employment discrimination based on race, color, religion, sex and national origin. Title VII also forbids employers from retaliating against current and former employees for complaining about workplace discrimination or otherwise asserting their Title VII rights.
The department’s investigation, conducted jointly by the Civil Rights Division and the U.S. Attorney’s Office for the Eastern District of New York, found that the Executive Chamber under former Governor Andrew M. Cuomo (1) subjected female employees to a sexually hostile work environment; (2) tolerated that environment and failed to correct the problem on an agency-wide basis and (3) retaliated against employees who spoke out about the harassment.
Former Governor Cuomo and many complicit senior staff left the Executive Chamber in 2021. Since the department’s investigation began in August 2021, the Executive Chamber has implemented changes to its policies and practices intended to prevent and address the alleged misconduct. The agreement announced today memorializes these efforts and calls for additional reforms, including:
- Expanding the Executive Chamber’s Human Resources Department;
- Creating new policies and procedures for the external reporting, investigation and resolution of complaints involving high-level Executive Chamber employees, including the Governor;
- Developing and implementing robust training and anti-retaliation programs and
- Creating mechanisms to assess the reforms’ effectiveness on a systemic basis.
“Executive Chamber employees deserve to work without fear of sexual harassment and harsh reprisal when they oppose that harassment,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The conduct in the Executive Chamber under the former governor, the state’s most powerful elected official, was especially egregious because of the stark power differential involved and the victims’ lack of avenues to report and redress harassment. With this settlement agreement, the Executive Chamber under Governor Hochul is undertaking additional actions that will address system failures of the past while helping prevent the recurrence of systemic sexual harassment and retaliation in the future.”
“We appreciate the Governor’s stated determination to make sure that sexual harassment does not recur at the highest level of New York State government,” said U.S. Attorney Breon Peace for the Eastern District of New York. “We share that goal and enter into this agreement to advance our common goal of creating clear, comprehensive and, most importantly, enduring policies preventing sexual harassment in the Executive Chamber.”
The enforcement of Title VII and other federal laws against employment discrimination is a top priority of the Justice Department. This agreement is part of the Civil Rights Division’s Employment Litigation Section’s Sexual Harassment in the Workplace Initiative, which seeks to eradicate sexual harassment in state and local government workplaces. It focuses on litigation, outreach and developing effective remedial measures to address and prevent sex discrimination and harassment.
More information about the work of the Civil Rights Division, the division’s Employment Litigation Section and civil rights enforcement at the U.S. Attorney’s Office for the Eastern District of New York is available at www.justice.gov/crt, www.justice.gov/crt/employment-litigation-section and www.justice.gov/usao-edny/civil-rights.
Justice Department Secures Settlement Agreement with State of New York Executive Chamber to Resolve Sexual Harassment and Retaliation Claims Under Title VIIRead the Press Release
The Justice Department announced today that it has signed an agreement with the State of New York Executive Chamber (Executive Chamber) to resolve the department’s claims that the Executive Chamber under former Governor Andrew Cuomo engaged in a pattern or practice of sexual harassment and retaliation in violation of Title VII of the Civil Rights Act of 1964. The agreement memorializes the reforms already carried out by current Governor Kathy Hochul as well as additional reforms aimed at preventing sexual harassment and retaliation in the Executive Chamber.
Title VII is a federal law that prohibits employment discrimination based on race, color, religion, sex and national origin. Title VII also forbids employers from retaliating against current and former employees for complaining about workplace discrimination or otherwise asserting their Title VII rights.
The department’s investigation, conducted jointly by the Civil Rights Division and the U.S. Attorney’s Office for the Eastern District of New York, found that the Executive Chamber under former Governor Andrew M. Cuomo (1) subjected female employees to a sexually hostile work environment; (2) tolerated that environment and failed to correct the problem on an agency-wide basis and (3) retaliated against employees who spoke out about the harassment.
Former Governor Cuomo and many complicit senior staff left the Executive Chamber in 2021. Since the department’s investigation began in August 2021, the Executive Chamber has implemented changes to its policies and practices intended to prevent and address the alleged misconduct. The agreement announced today memorializes these efforts and calls for additional reforms, including:
- Expanding the Executive Chamber’s Human Resources Department;
- Creating new policies and procedures for the external reporting, investigation and resolution of complaints involving high-level Executive Chamber employees, including the Governor;
- Developing and implementing robust training and anti-retaliation programs and
- Creating mechanisms to assess the reforms’ effectiveness on a systemic basis.
“Executive Chamber employees deserve to work without fear of sexual harassment and harsh reprisal when they oppose that harassment,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The conduct in the Executive Chamber under the former governor, the state’s most powerful elected official, was especially egregious because of the stark power differential involved and the victims’ lack of avenues to report and redress harassment. With this settlement agreement, the Executive Chamber under Governor Hochul is undertaking additional actions that will address system failures of the past while helping prevent the recurrence of systemic sexual harassment and retaliation in the future.”
“We appreciate the Governor’s stated determination to make sure that sexual harassment does not recur at the highest level of New York State government,” said U.S. Attorney Breon Peace for the Eastern District of New York. “We share that goal and enter into this agreement to advance our common goal of creating clear, comprehensive and, most importantly, enduring policies preventing sexual harassment in the Executive Chamber.”
The enforcement of Title VII and other federal laws against employment discrimination is a top priority of the Justice Department. This agreement is part of the Civil Rights Division’s Employment Litigation Section’s Sexual Harassment in the Workplace Initiative, which seeks to eradicate sexual harassment in state and local government workplaces. It focuses on litigation, outreach and developing effective remedial measures to address and prevent sex discrimination and harassment.
More information about the work of the Civil Rights Division, the division’s Employment Litigation Section and civil rights enforcement at the U.S. Attorney’s Office for the Eastern District of New York is available at www.justice.gov/crt, www.justice.gov/crt/employment-litigation-section and www.justice.gov/usao-edny/civil-rights.
Former New York City Correction Officer Pleads Guilty to Salary and Overtime FraudRead the Press Release
Earlier today, in federal court in Brooklyn, former New York City Department of Correction (DOC) officer James Internicola pleaded guilty to federal program fraud, admitting that he fraudulently obtained a significant amount of salary and overtime pay by lying about the hours he worked. The proceeding was held before United States District Judge Kiyo A. Matsumoto. When sentenced, the defendant faces a maximum sentence of 10 years’ imprisonment. Internicola resigned from the DOC after his arrest.
Breon Peace, United States Attorney for the Eastern District of New York, James Smith, Assistant Director-in-Charge, New York Field Office (FBI), and Jocelyn E. Strauber, Commissioner, New York City Department of Investigation (DOI), announced the guilty plea.
“The defendant defrauded the City of New York by falsely claiming to have worked thousands of hours and fraudulently pocketing more than $170,000, when he was actually at home, vacationing in Aruba or elsewhere,” stated United States Attorney Peace. “The defendant’s greed cost taxpayer’s substantial money and threatens to undermine public confidence in our government institutions. This Office and its law enforcement partners are committed to fighting corruption on Rikers Island.”
DOI Commissioner Strauber said, “This defendant, while a New York City Correction Officer, lied about the hours he worked, claiming to be on duty when, in fact, he was at home or on vacation, in order to obtain more than $170,000 of City funds by fraud. The criminal conduct that he has acknowledged today does not reflect the dedication and integrity of the many City employees who show up every day to do their jobs and serve their fellow New Yorkers. I thank our law enforcement partners in the U.S. Attorney’s Office for the Eastern District of New York and the New York Office of the FBI for their commitment to protect City resources and to ensure that employees who defraud the City will be held accountable.”
According to court documents and facts presented at the guilty plea proceeding, Internicola fraudulently obtained more than $171,000 in salary and overtime pay by lying about the hours he worked from at least July 2021 to January 2023. During this time, Internicola claimed to work large amounts of overtime nearly every week. In fact, based on license plate reader data, E-Z pass toll records and cell site location information, Internicola frequently showed up to work more than two hours late and left work several hours early. In many instances, Internicola claimed to be at work when he actually never showed up to Rikers Island at all, including when he was at his home on Staten Island, visiting the Jersey Shore or vacationing in Aruba. In total, Internicola claimed to have worked more than 2,250 hours more than he actually did in a period of approximately 18 months and he fraudulently received the equivalent of more than a year of his base salary.
The government’s case is being handled by the Office’s Public Integrity Section. The government’s case is being prosecuted by Assistant United States Attorneys Andrew D. Grubin and Philip Pilmar.
The Defendant:
JAMES INTERNICOLA
Age: 56
Staten Island, New YorkE.D.N.Y. Docket No. 23-CR-531 (KAM)
New York Presbyterian Hospital Pays over $800,000 to Settle Claims that Physician Practices Improperly Billed Government Health Care ProgramsRead the Press Release
Breon Peace, United States Attorney for the Eastern District of New York, announced today that New York Presbyterian Hospital (NYPH) has agreed to pay $801,000 to resolve claims that two radiology practices improperly billed Medicare, Medicaid and TRICARE for images used in image guided radiation therapy treatments (IGRT) provided to cancer patients. The settlement agreement, which resolved claims under the Federal False Claims Act, was approved on January 19, 2024 by United States District Judge William F. Kuntz, II.
“The defendants provided substandard care to cancer patients by not properly or timely reviewing medical imaging and then billed taxpayer funded healthcare programs for these shoddy services,” stated United States Attorney Breon Peace. “My Office is committed to holding healthcare providers accountable for such conduct.”
Mr. Peace thanked the U.S. Department of Health and Human Services, Office of Inspector General, Federal Bureau of Investigation, Office of Personnel Management, Defense Healthcare Agency, and the New York State Office of Attorney General’s Medicaid Fraud Control Unit for their work on this case.
Radiation Therapist Associates, P.C. (RTA) and Leading Edge Radiation Oncology Services, PLLC (LEROS), which are no longer operating, provided outpatient radiation oncology services to several Brooklyn communities. RTA was a physician practice located within Methodist Hospital and operated under a contract with a predecessor of NYPH. LEROS was operated by an overlapping group of physicians and was a joint venture between NYPH’s predecessor and LEROS.
IGRT is a type of cancer treatment that uses imaging technologies such as PET, MRI, and CT to deliver radiation more accurately and safely to cancer cells. It uses periodically taken images to guide the precise delivery of radiation.
The United States claimed that between 2012 and 2018, RTA and LEROS billed for images utilized in IGRT when such images were either not reviewed, or were not timely reviewed, and therefore were not reasonable and necessary. Further, the investigation found that initial consultation sessions at RTA were in some instances billed at a higher coding level than appropriate.
Under the terms of the agreement with the United States and the State of New York, NYPH will pay a total of $801,000, with $694,999.71 going to the United States and $106,000.29 to the State of New York. These funds will go to the Medicare, Medicaid, and TRICARE programs.
The settlement includes the resolution of a civil action brought under the qui tam or whistleblower provisions of the False Claims Act. Under the qui tam provisions of the False Claims Act, a private party can file an action on behalf of the United States and receive a portion of the settlement if the government takes over the case and reaches a monetary agreement with the defendant. The claims resolved by the settlement are allegations only and there has been no admission of or determination of liability.
The case is being handled by Assistant U.S. Attorney Matthew Silverman of the Office’s Civil Division.
E.D.N.Y. Docket No. 17-CV-6356
United States ex rel. RAD Claim, LLC v. Radiation Therapist Associates, P.C. et al.,