Eastern District of New York
Press releases recorded for this federal judicial district.
Brooklyn Man Sentenced to 48 Months for International Bank HeistsRead the Press Release
Earlier today, Garri Smith was sentenced to 48 months in prison by United States District Judge LaShann DeArcy Hall at the federal courthouse in Brooklyn, New York, for money laundering conspiracy in connection with his role in a multi-year scheme in which he and his co-conspirators stole millions of dollars from bank safety deposit boxes in seven foreign countries. Smith pled guilty to the charge in June 2022.
Breon Peace, United States Attorney for the Eastern District of New York and Erin Keegan, Acting Special Agent-in-Charge, Department of Homeland Security, Homeland Security Investigations, New York (HSI), New York and James Smith, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI) announced the sentence.
“Smith used deception and high-tech medical equipment to break into safety deposit boxes and steal millions of dollars, jewelry and even gold bars from customers around the world,” stated United States Attorney Breon Peace. “This prosecution represents our continued commitment to combat theft and fraud, and put a stop to individuals who seek to use U.S. banks to launder their ill-gotten gains.”
Mr. Peace also expressed his appreciation for the assistance of the New York City Police Department, Customs and Border Protection (CBP), the European Union Agency for Law Enforcement Cooperation (Europol) and the governments of Azerbaijan, Latvia, Moldova, North Macedonia, Ukraine and Uzbekistan in the investigation.
“Garri Smith stole a fortune from banks around the world in a scheme more suited for a Hollywood production. He sought wealth and the finer things, but instead landed himself on the wrong side of the law,” said HSI New York Acting Special Agent in Charge Erin Keegan. “I want to thank FBI New York and our law enforcement partners here and abroad, who together have shown that even the craftiest of criminals will ultimately get caught.”
According to court filings and facts presented during the sentencing proceeding, Smith and other members of the conspiracy would pose as customers at the target banks in countries including Ukraine, Russia, North Macedonia, Moldova, Latvia, Uzbekistan and Azerbaijan, where they would rent safety deposit boxes, sometimes using fake identification documents. After they gained access to rooms at the banks where these safety deposit boxes were located, they used specialized medical equipment to take photographs of the inside of the locks on other customers’ safety deposit boxes. Using these photographs, the conspirators created duplicate keys to access the safety deposit boxes and used those keys to steal money and other valuables, including jewelry and gold bars, from the banks’ customers. For his role in the thefts, Smith is accountable for a loss of $5.1 million. They then laundered their ill-gotten gains into their United States-based bank accounts.
The government’s case is being prosecuted by Assistant United States Attorneys Devon Lash, Joy Lurinsky, Megan Larkin, and Brian Morris.
The Defendant:
GARRI SMITH
Age: 52
Brooklyn, New YorkE.D.N.Y. Docket No. 21-CR-208 (LDH)
Convicted Felon Charged with Possession of Ammunition in Connection with Broad Daylight Shooting in BrooklynRead the Press Release
Earlier today, at the federal courthouse in Brooklyn, an indictment was unsealed charging Luis Rosario with being a felon in possession of ammunition relating to a December 3, 2023 shooting in the Red Hook section of Brooklyn. Rosario was arrested this morning and will be arraigned this afternoon before United States Magistrate Judge Peggy Kuo.
Breon Peace, United States Attorney for the Eastern District of New York; Tommy Kalogiros, Assistant Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives, New York Division (ATF); and Edward A. Caban, Commissioner, New York City Police Department (NYPD) announced the arrest and indictment.
“As alleged, Rosario is a convicted felon who shot and injured a man in broad daylight on a Brooklyn sidewalk without regard for the victim or passersby who were in the line of fire,” said United States Attorney Peace. “Today’s arrest and indictment demonstrates the important work that this Office and our law enforcement partners are doing to reduce gun violence in our communities.”
“With today’s indictment, the NYPD continues its tireless efforts to rid our communities of gun violence,” stated NYPD Commissioner Caban. “I thank all of our law enforcement partners for their dedication to this critical aspect of our public safety mission.”
“The callous disregard for life will not be tolerated under any circumstance. This indictment demonstrates the commitment of law enforcement and prosecutors working together at all levels. ATF NY is laser-focused on targeting the most significant drivers of violent crime in our communities. I commend the work of ATF NY’s Joint Firearms Task Force, NYPD’s Brooklyn South Violent Crime Squad, NYPD’s 76th Precinct, Drug Enforcement Administration, U.S. Marshals Service, the U.S. Secret Service And the United States Attorney’s Office for the Eastern District of New York . We are dedicated to protecting the public and holding trigger pullers accountable for their actions,” stated ATF Assistant Special Agent-in-Charge Kalogiros.
As alleged in the indictment and other court filings, on December 3, 2023, Rosario fired multiple shots from close range at three men standing on the sidewalk outside of a supermarket and restaurant located across the street from a housing development in Red Hook. Surveillance video footage shows Rosario pulling a gun from his jacket and opening fire while passersby were walking along the sidewalk. Rosario shot one man in the leg, causing him to collapse. As the wounded victim lay on the sidewalk, Rosario got into a car and drove it directly toward the victim, running over his foot.
Rosario has a prior felony conviction. On June 20, 2016, he was convicted in Bronx County Supreme Court of knowingly making or possessing dangerous contraband in prison in the first degree.
The charge in the indictment is an allegation, and the defendant is presumed innocent unless and until proven guilty. If convicted, Rosario faces up to 15 years in prison.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. As part of the program, U.S. Attorney’s Offices work in partnership with federal, state, local, and tribal law enforcement and their local communities to develop effective, locally based strategies to reduce violent crime. The U.S. Attorney’s Office for the Eastern District of New York is currently partnering with the SCPD, the NYPD, the Federal Bureau of Investigation (FBI), ATF, the U.S. Department of Homeland Security, Homeland Security Investigations (DHS/HSI), and the Drug Enforcement Administration (DEA) in its PSN mission.
The government’s case is being handled by the Office’s Organized Crime and Gangs Section. Assistant United States Attorneys Andrew M. Roddin and James R. Simmons are in charge of the prosecution.
The Defendant:
LUIS ROSARIO
Age: 30
Cliffside Park, New JerseyE.D.N.Y. Docket No. 24-CR-20 (RER)
Chicago Man Indicted for Possessing an Illegal MachinegunRead the Press Release
Earlier today, a federal grand jury in Brooklyn returned a two-count indictment charging Isaiah Dukes, also known as “Lil Zay Osama,” with possession of a machinegun and possession of an unregistered firearm. Dukes is presently in state custody in Illinois on unrelated charges and will be arraigned in federal court in Brooklyn at a later date.
Breon Peace, United States Attorney for the Eastern District of New York, Tommy Kalogiros, Special Agent-in-Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives, New York Field Office (ATF), and Edward A. Caban, Commissioner, New York City Police Department (NYPD), announced the indictment.
“As alleged, Dukes brought a machinegun into our District, and then dangerously left it in the back of a rideshare,” stated United States Attorney Peace. “This Office, together with our law enforcement partners, will continue to work diligently to protect our communities from such dangerous weapons.”
“Machineguns have been highly regulated in the United States since the 1930s and have been banned since 1986. Machineguns have no place on the streets of our communities. They are weapons intended to kill and injure with maximum effect, with the shooter often firing uncontrollably and indiscriminately. They pose a significant danger to both the public and law enforcement. Today’s indictment serves as an important reminder that machinegun conversion devices, such as switches, violate federal law, and that possession will not be tolerated. The men and women of ATF will continue to work with our partners to reduce the proliferation of these devices on our streets. Thanks to ATF NY’s Joint Firearms Task Force, ATF Chicago, NYPD & EDNY,” stated ATF Assistant Special Agent-in-Charge Kalogiros.
“Today’s indictment is a stark reminder that loaded, illegal firearms – sometimes modified to maximize their deadly potential, as alleged in this case – continue to be brought into and carried throughout New York City,” stated NYPD Commissioner Caban. “Let me be clear: This behavior will not be tolerated here, and the NYPD vows to keep our streets safe from guns and anyone who unlawfully possesses them. I commend and thank the rideshare driver who observed this weapon for doing what we always ask of all New Yorkers: He saw something and he said something, and he possibly saved lives in the process.”
As alleged in public filings, on September 29, 2022, Dukes carried a loaded Glock pistol affixed with a switch — a device that when attached to the back of a handgun like a Glock converts the firearm into a fully automatic weapon. Law enforcement subsequently determined that the firearm can automatically fire more than one round with a single function of the trigger, rendering it a machinegun. Dukes was arrested after leaving the firearm in a rideshare vehicle that brought him from a luxury hotel in Manhattan to a recording studio in Queens.
The charges in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty. If convicted of all counts, the defendant faces a maximum of 20 years’ imprisonment.
Assistant United States Attorneys Gilbert M. Rein and Rebecca M. Schuman are in charge of the prosecution with assistance from Paralegal Specialist Rachel Friedman.
The Defendant:
ISAIAH DUKES
Age: 26
Calumet City, IllinoisE.D.N.Y. Docket No. 24-CR-28 (NRM)
Member for the Elite Assassin Millas Gang Sentenced to 45 Years in Prison for Firearms Offenses Involving Murder and Assault In-Aid-Of RacketeeringRead the Press Release
Earlier today, in federal court in Brooklyn, Tyshawn Corbett, also known as “Reck,” was sentenced by United States District Judge Kiyo A. Matsumoto to 45 years in prison. In September 2022, the defendant pleaded guilty to three firearm offenses involving murder or assault in-aid-of racketeering, each of which carried a mandatory consecutive term of 10 years.
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, announced the sentence.
“For years, Corbett inflicted violence on rivals and terrorized the East New York community with impunity, but with today’s sentence, he has been punished for his repeated, flagrant disrespect for the law,” stated United States Attorney Peace. “My Office is deeply committed to combating gang violence and will continue to work tirelessly with federal and local law enforcement to dismantle these groups.”
“Everyone who was subjected to the intimidation and brutality perpetrated by Mr. Corbett can breathe easier today with news of this meaningful prison sentence,” stated NYPD Commissioner Edward A. Caban. “The NYPD, in close partnership with our colleagues at the FBI and the office of the U.S. Attorney for the Eastern District, will continue to focus its resources on the relatively small number of criminals responsible for driving the violence in New York City. Neither we nor the people we serve will ever stand for our neighborhoods to be overrun by illegal drugs, guns, and associated gang violence, and I commend the investigators and prosecutors involved in this case for their steadfast commitment to our public safety mission.”
According to court filings and transcripts, Corbett was a long-time member of the East New York-based Elite Assassin Millas (E.A.M.), a set of the Bloods street gang that operated primarily in East New York. The gang made money through fraud and drug dealing, particularly sales of crack cocaine and marijuana. The gang’s members murdered or attempted to murder its rivals to maintain its power. E.A.M. even referred to its East New York-based chapter as “Gun Town” for the level of violence its members and associates committed and perpetuated.
Within the gang, Corbett developed a reputation as a “shooter” for being willing to shoot and kill other people. In this case, Corbett pleaded guilty to committing three shootings. In April 2015, Corbett shot and killed Michael Tenorio. Then, between 2016 and 2018, Corbett engaged in extensive efforts to stalk and kill another individual (John Doe #1). Corbett attempted to shoot and kill John Doe #1 in March 2016 but John Doe #1 survived the shooting. When that murder attempt failed, Corbett and other members of E.A.M. stalked John Doe #1 to try to kill him again. On June 28, 2018, Corbett located John Doe #1 and fired at him repeatedly at close range, striking him approximately six times. John Doe #1 survived the shooting but was left paralyzed. Evidence presented during the trial of a co-defendant showed that Corbett participated in at least four additional shootings over the years.
The government’s case has led to the convictions of six members and associates of E.A.M. in addition to Corbett, including E.A.M.’s leader, Quandel Smothers, who was convicted at trial and is scheduled to be sentenced in March 2024.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The government’s case is being handled by the Office’s Organized Crime and Gangs Section. Assistant United States Attorneys Jonathan Siegel, Genny Ngai and Matthew Galeotti are in charge of the prosecution.
The Defendant:
TYSHAWN CORBETT (also known as “Reck”)
Age: 32
Brooklyn, New YorkE.D.N.Y. Docket No. 20-CR-213 (KAM)
Long Island Woman Sentenced to 33 Months in Prison for Obstructing the Internal Revenue Service, Filing False Tax Returns and Structuring Cash DepositsRead the Press Release
Earlier today, in federal court in Central Islip, Lorraine Pilitz was sentenced by United States District Judge Joanna Seybert to 33 months’ imprisonment for illegally structuring financial transactions, corruptly obstructing the Internal Revenue Service and filing false tax returns. Pilitz was also ordered to pay $324,702.78 in restitution to the Internal Revenue Service and forfeited a commercial property in Lindenhurst, New York. Pilitz was convicted of the charges in November 2022 after a two-week trial.
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 sentence.
“For years Pilitz thought she could get away with hiding substantial amounts of cash and income, impeding the Internal Revenue Service, and cheating her employees, until a jury found her guilty on all counts. Today’s sentence sends a message to the defendant and others who place greed above following the law that this Office will vigorously prosecute those who commit tax fraud,” stated United States Attorney Peace.
“Lorraine Pilitz lined her pockets with money owed to the government by hiding hundreds of thousands of dollars and grossly underreporting her income with an ‘off-the-books’ payroll. IRS-CI New York worked closely with the Eastern District of New York on this case, and Pilitz has since been convicted by a jury of her peers. Today’s sentencing means she now faces the consequences of her self-serving criminal acts,” stated IRS-CI Special Agent-in-Charge Fattorusso.
As proven at trial, Pilitz owned and operated several automobile-related businesses on Long Island. Financial institutions are required to file a Currency Transaction Report (CTR) with the IRS for each transaction in excess of $10,000. Between 2011 and 2013, the defendant routinely structured cash deposits to avoid the required CTR filings – depositing cash amounts just under $10,000. As a result of Pilitz’s scheme, hundreds of thousands of dollars were concealed from the IRS. As part of the same scheme to conceal her income, Pilitz also diverted hundreds of thousands of dollars of business checks into her and her family’s personal bank accounts, maintained “off-the-books” payrolls, failed to file personal and corporate tax returns, and filed false tax returns that severely underreported her income.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorneys Burton T. Ryan, Jr., Adam R. Toporovsky, Madeline O’Connor and Diane Leonardo are in charge of the prosecution with assistance from Paralegal Specialist Michael Compitello.
The Defendant:
LORRAINE PILITZ (also known as “Lorraine Christie” and “Lorraine Storms”)
Age: 65
Merrick, New YorkE.D.N.Y. Docket 17-CR-53 (S-2) (JS)
Former Fiscal Officer for Non-Profit Company Pleads Guilty to Stealing Nearly $2.3 Million from Brooklyn CharityRead the Press Release
Earlier today, Marcia Joseph pleaded guilty at the federal courthouse in Brooklyn, to wire fraud in connection with her embezzlement of approximately $2.3 million from her employer, a non-profit organization that provides employment and education services for those in need. Joseph was arrested in October 2023. Today’s proceeding was held before United States District Judge Eric N. Vitaliano. When sentenced, Joseph faces up to 20 years’ 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 Jocelyn E. Strauber, Commissioner, New York City Department of Investigation (DOI), announced the guilty plea.
“With her guilty plea today, the defendant admitted that she failed in her duty to serve a non-profit organization by stealing millions of dollars for personal expenses that were meant to be spent in its mission helping vulnerable members of the community,” stated United States Attorney Peace. “When she is sentenced, the defendant will learn the penalty for her dishonesty and greed.”
“This defendant created a company for the sole purpose of siphoning $2.3 million from the City-funded nonprofit where she worked. She took valuable funds meant for the educational and employment needs of economically disadvantaged New Yorkers for her personal profit. DOI thanks our federal partners, the U.S. Attorney’s Office for the Eastern District of New York and the FBI, for their commitment to protecting precious public funds that help those in need,” stated DOI Commissioner Strauber.
According to the complaint, court filings, and facts presented during the plea hearing, Joseph was the senior fiscal officer of Company-1, a 501(c)(3) non-profit organization located in Brooklyn, New York that provides comprehensive services to support employment opportunities for persons with emotional, developmental, and/or physical disabilities, and those who are economically disadvantaged. Joseph set up a company called Prestige Business Services (“Prestige”), which purported to provide specialized services to other companies on behalf of Company-1. In truth, Prestige performed no work, and was used by Joseph for the exclusive purpose of embezzling more than $2.3 million from Company-1 over a 16-year period. Joseph used the money paid by Company-1 to Prestige to pay for numerous personal expenses, including approximately $235,000 in mortgage payments; $207,000 in credit card payments; $98,000 in car payments; $45,000 in Amazon expenses; and various other personal items, such as home remodeling, spa treatment, landscaping expenses, and luxury goods. Joseph also withdrew nearly $100,000 in cash, disbursed approximately $16,000 to friends and family, and issued approximately $50,000 in Prestige checks to herself.
The government’s case is being handled by the Office’s Public Integrity Section. Assistant United States Attorney Eric Silverberg is in charge of the prosecution with assistance from Paralegal Specialists Elizabeth Reed and Melissa Bennett.
The Defendant:
MARCIA JOSEPH (also known as “Marcia James,” “Marcia Lewis,” and “Marcia Peters”)
Age: 57
Baldwin, New YorkE.D.N.Y. Docket No. 24-CR-4 (ENV)
CEO of Crypto Investment Platform Charged in Multi-Million Dollar International Fraud SchemeRead the Press Release
This morning, Horst Jicha, a German national, will be arraigned at the federal courthouse in Brooklyn on an indictment charging him with securities fraud and conspiracies to commit securities fraud, wire fraud, and money laundering for his role in a cryptocurrency scheme called USI Tech. Jicha was arrested, and the charges against him were unsealed when he entered the United States on December 23, 2023 attempting to vacation in Miami, Florida.
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 charges.
“As alleged, in the early days of crypto, the defendant deployed a multilevel marketing scheme to defraud U.S. investors excited about the crypto market,” stated United States Attorney Peace. “Although the defendant did not return to the United States for half a decade, my Office and the FBI worked to ensure that when he did, he would be brought to justice. Our Office is committed to prosecuting any criminal actor defrauding U.S. investors for their own gain, regardless of where in the world they may come from.”
“Too often honest investors fall victim to schemes surrounding emerging financial opportunities. Horst Jicha allegedly advertised a platform that made cryptocurrency investing simple and more accessible to investors, with guaranteed returns. In reality the platform was just a facade, and when questions arose, Jicha stole millions of his investors’ money and fled the country. No matter how long it takes, the FBI will continue to bring to justice criminal financial fraudsters,” stated FBI Assistant Director-in-Charge Smith.
As alleged in the indictment, USI Tech was an online platform that began in Europe and purported to make cryptocurrency investments easy and accessible to the average retail investor. In reality, it was a multilevel marketing scheme that relied on investors recruiting other investors below them to buy various purported cryptocurrency investments. Jicha was one of USI Tech’s founders and its Chief Executive Officer. In 2017, Jicha brought USI Tech to the United States and aggressively marketed it to U.S. retailers on social media and through in-person presentations in which he falsely guaranteed high returns on investments and made false claims about the legality of the platform’s investment offerings.
In early 2018, after USI Tech faced regulatory scrutiny in the United States, it ceased all U.S. operations overnight, leaving investors with no ability to access their money and resulting in millions of dollars in losses. Much of the missing money – Ether and Bitcoin valued at approximately $150 million as of the date of his arrest – was sent to cryptocurrency deposit addresses controlled by Jicha after USI Tech ceased operations. Jicha had not returned to the United States for over five years, until the date of his arrest.
If you believe that you have been a victim of this crime, please contact [email protected].
The charges in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty.
The government’s case is being prosecuted by the Office’s Business and Securities Fraud and General Crimes Sections. Assistant United States Attorneys Kaitlin Farrell, Genny Ngai, and Daniel Marcus are in charge of the prosecution with assistance from Paralegal Specialist Liam McNett.
Defendant:
HORST JICHA
Age: 64
Germany
E.D.N.Y. Docket No. 23-CR-342 (OEM)Six Indicted for Interstate Theft Scheme Along East CoastRead the Press Release
A five-count indictment was unsealed earlier today variously charging six defendants with interstate transportation of stolen property, interstate transportation of stolen motor vehicle and conspiracy counts, in connection with a 20-month scheme to steal rental cars from Hertz Global Holdings (Hertz) and other car companies, and merchandise from the retail stores Lowe’s Companies, Inc. (Lowe’s) and The Home Depot, Inc. (Home Depot). Defendants Christopher World, Lovell Ambrister and Hassen Lewis were arrested this morning, during which a gun with an extended magazine was found, and will be arraigned later today at the federal courthouse in Brooklyn before United States Magistrate Judge Marcia M. Henry. Defendants Trent Dance and Von Vincent are detained on other charges in Valhalla, New York and Auburn, New York, respectively, and they will be arrested and arraigned at the federal courthouse in Brooklyn at a later date. Defendant William Harvin is still at large.
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 charges.
“As alleged, the instruction manual for these defendants was simple: commit crimes at every stage, and repeat. They stole over $300,000 in cars to drive to stores, which they robbed of over $500,000 in merchandise – and replayed this scheme at least 130 times across the East Coast,” stated United States Attorney Peace. “Let this serve as a warning: retail theft has real consequences.”
Mr. Peace thanked the New York State Police; the Connecticut Department of Public Safety; the New York City Police Department; the Freeport Police Department, Freeport, New York; the South Burlington Police Department, South Burlington, Vermont; the Vestal Police Department, Vestal, New York; and the Wappingers Falls Police Department, Wappingers Falls, New York, for their assistance with the investigation.
"These six defendants allegedly attempted to benefit by stealing from home improvement stores up and down the East Coast. Today they have found out what the FBI has proven repeatedly—crime doesn’t pay. The arrests serve as a warning to anyone who believes they can pull off and profit from robberies– the FBI will ensure your crime spree is brought to an end," stated FBI Assistant Director-in-Charge Smith.
As alleged in the government’s court filings, from about April 2022 to December 2023, the defendants stole rental cars from Hertz and others along the East Coast, drove those cars from New York to various branch stores of Lowe’s and Home Depot along the East Coast, and stole home improvement merchandise, often Lutron lighting products, for resale in New York. As a result of the scheme, the defendants together stole at least $516,000 in merchandise from 71 Lowe’s branches and 59 Home Depot branches in 13 states, spanning from South Carolina to Maine. At least 21 of the stores were located in the Eastern District of New York. Each of the defendants personally participated in dozens of the thefts, and many of the defendants face arrest warrants for their thefts in multiple states, including Pennsylvania, Virginia and South Carolina. The defendants also stole at least $320,000 in rental cars in four states, including New York.
The charges in the indictment are merely allegations, and the defendants are presumed innocent unless and until proven guilty. The defendants face a maximum of 10 years’ imprisonment for each of the interstate transportation counts and a maximum of 5 years’ imprisonment for the conspiracy count.
The government’s case is being handled by the Office’s Organized Crime and Gangs Section. Assistant United States Attorney Victor Zapana is in charge of the prosecution, with assistance from Paralegal Specialist Eileen Rosado.
The Defendants:
CHRISTOPHER WORLD (also known as “Birdo”)
Age: 22
Brooklyn, New YorkLOVELL AMBRISTER (also known as “Stali”)
Age: 22
Bronx, New YorkTRENT DANCE (also known as “Tre Savv”)
Age: 21
Brooklyn, New YorkWILLIAM HARVIN (also known as “Pook”)
Age: 24
Brooklyn, New YorkHASSEN LEWIS (also known as “Fan Boy”)
Age: 22
Brooklyn, New YorkVON VINCENT
Age: 22
Brooklyn, New YorkE.D.N.Y. Docket No. 24-CR-7 (AMD)
Businessman Arrested for Scheme to Illegally Export Semiconductors and Other Controlled Technology to RussiaRead the Press Release
BROOKLYN, NY – A complaint was unsealed today in federal court in Brooklyn charging Ilya Kahn, a citizen of the United States, Israel, and Russia, for his alleged involvement in a multi-million dollar scheme to secure and illegally export sensitive technology from the United States for the benefit of a Russian business whose clients include elements of the Russian military and the Federal Security Service (FSB), the main successor agency to the Soviet Union’s KGB. The Russian business, Joint Stock Company Research and Development Center ELVEES (Elvees), was sanctioned by the U.S. government in 2022 because of its critical role in facilitating Russia’s military and its invasion of Ukraine. The complaint charges Kahn with conspiracy to violate the Export Control Reform Act. Kahn was arrested yesterday in Los Angeles, California, and will make his initial appearance today in the Central District of California.
Breon Peace, United States Attorney for the Eastern District of New York, Matthew G. Olsen, Assistant Attorney General for the Justice Department’s National Security Division, James Smith, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Jonathan Carson, Special Agent-in-Charge, U.S. Department of Commerce, Office of Export Enforcement, Bureau of Industry and Security, New York Field Office, announced the arrest and charges.
Mr. Peace extended his appreciation to the U.S. Attorney’s Office for the Central District of California and the FBI’s Los Angeles Field Office for their assistance in this case.
“As alleged, Kahn illegally sent specialized technology from the United States to a Russian semiconductor manufacturer with ties to multiple other sanctioned Russian entities, and did so by circumventing U.S. export laws and regulations,” stated United States Attorney Peace. “Evading U.S export regulations to send goods to benefit the Russian military complex presents a danger to our national security and our allies and partners abroad. We will continue to use all of our law enforcement and national security tools to hold these enablers, both individuals and corporations, accountable for flouting the rule of law.”
“Mr. Kahn stands accused of repeatedly exporting sensitive technology to Russia before, during, and after Russia launched its unprovoked invasion of Ukraine,” stated Assistant Attorney General Olsen. “Violations of U.S. sanctions and export control laws that aid Russia and other hostile powers endanger our nation’s security and will be met with the full force of the Justice Department.”
“Illegally exporting semiconductors and other sensitive technology to a foreign adversary is not a trivial offense but a serious violation of American national security. Ilya Kahn’s alleged actions – utilizing a nefarious web of companies to export sensitive controlled technology to the Russian military and intelligence services – directly harmed the interests and security of the United States and our allies. The FBI, as we work to protect the United States, will continue to ensure that anyone willing to evade sanctions to aid hostile nations faces the consequences in the criminal justice system,” stated FBI Assistant Director-in-Charge Smith.“Sophisticated illegal schemes such as this that violate our nation’s export control laws in effort to facilitate Russia’s war will not be tolerated. The Office of Export Enforcement will leverage our unique authorities and continue to work with our law enforcement partners to disrupt and arrest the perpetrators of these illicit schemes,” stated Department of Commerce Special Agent-in-Charge Carson.
Kahn is the owner of Senesys Incorporated based in California, and Sensor Design Association with a contact address in Brooklyn, New York. As alleged in the complaint and other public filings, Kahn operated these two businesses—ostensibly involved in “security software development” and the testing of silicon wafers for military, avionics, and space users—through which he engaged in a years-long conspiracy to acquire and export sensitive and sophisticated electronics from the United States to Elvees in Russia without securing the appropriate licenses. For example, in 2019, Kahn sent multiple U.S.-origin microcontrollers to Elvees, and in 2022, Kahn sent U.S.-origin network interface controllers and a radio-frequency transmitter to Elvees by way of a Hong Kong-based shipping company. Each of these items required an export license due to national security and anti-terrorism reasons, which Kahn did not obtain.
Kahn also arranged for Elvees to continue to receive semiconductors after Russia’s February 2022 invasion of Ukraine increased the difficulty of shipping semiconductors to Russia. These semiconductors can be used for, among other things, communications systems, GPS receivers, and equipment for unmanned aerial vehicles, also known as drones. After a company in Taiwan that manufactured Elvees-designed semiconductors refused to ship those semiconductors to Russia following the invasion of Ukraine, Kahn arranged for the semiconductors to be sent to the United States and then re-exported them to Russia often through a shipping company based at John F. Kennedy International Airport in Queens, New York. Kahn also used Hong Kong and other locations around the world as transshipment points in order to evade U.S. export laws and regulations and conceal the Russian end users.
Even after Elvees was sanctioned by the U.S. government for its role in developing electronics components for the Russian military, Kahn continued to work with Elvees. In May 2022, Kahn emailed a Taiwan manufacturer design guidance for an Elvees-branded microchip. Subsequently, Kahn shipped thousands of units of this microchip to a Hong Kong shipping company, and then to a company located in the mainland of the People’s Republic of China. Kahn noted in communications with the Hong Kong shipping company that he received a “call from Russia” about the PRC business to which he was directing the goods.
Kahn’s export activity for the benefit of Elvees dates to at least 2012, and he received more than $50 million from Elvees and related entities between 2012 and 2022.
The charge in the complaint is an allegation, and the defendant is presumed innocent unless and until proven guilty. If convicted of the charge, Kahn faces up to 20 years in prison.
The government’s case is being handled by the Office’s National Security and Cybercrime Section. Assistant United States Attorneys Craig R. Heeren, Artie McConnell, and Matthew Skurnik are in charge of the prosecution, along with Trial Attorney Scott Claffee of the National Security Division’s Counterintelligence and Export Control Section, with assistance from Litigation Analysts Joseph Levin and Mary Clare McMahon.
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:
ILYA KAHN
Age: 66
Israel, Brooklyn, NY; Los Angeles, CaliforniaE.D.N.Y. Docket No. 23-MJ-1133
Businessman Arrested for Scheme to Illegally Export Semiconductors and Other Controlled Technology to RussiaRead the Press Release
Ilya Kahn, 66, a citizen of the United States, Israel and Russia, and resident of Brooklyn, New York, and Los Angeles, California, was arrested yesterday in Los Angeles for his alleged involvement in a years-long scheme to secure and unlawfully export sensitive technology from the United States for the benefit of a Russian business. The business was sanctioned by the U.S. government following Russia’s unprovoked invasion of Ukraine in February 2022 and whose clients include elements of the Russian military and the Federal Security Service (FSB), the main successor agency to the Soviet Union’s KGB.
According to court documents, Kahn is charged by criminal complaint with conspiracy to violate the Export Control Reform Act (ECRA). Kahn will make his initial appearance in the Central District of California.
“Mr. Kahn stands accused of repeatedly exporting sensitive technology to Russia before, during, and after Russia launched its unprovoked invasion of Ukraine,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “Violations of U.S. sanctions and export control laws that aid Russia and other hostile powers endanger our nation’s security and will be met with the full force of the Justice Department.”
“This arrest reflects our continued aggressive enforcement of export control violations involving the Russian military and the Federal Security Service,” said Assistant Secretary for Export Enforcement Matthew S. Axelrod of the Commerce Department’s Bureau of Industry and Security (BIS). “Stopping the flow of semiconductors and sensitive technologies to those aiding Russia’s unjust war in Ukraine is a critical priority for BIS and our Disruptive Technology Strike Force partners.”
“As alleged, Kahn illegally sent specialized technology from the United States to a Russian semiconductor manufacturer with ties to multiple other sanctioned Russian entities and did so by circumventing U.S. export laws and regulations,” said U.S. Attorney Breon Peace for the Eastern District of New York. “Evading U.S export regulations to send goods to benefit the Russian military complex presents a danger to our national security and our allies and partners abroad. We will continue to use all of our law enforcement and national security tools to hold these enablers, both individuals and corporations, accountable for flouting the rule of law.”
“This arrest marks the end of Ilya Khan's alleged involvement in a years-long scheme to secure and export millions of dollars’ worth of sensitive technologies from the U.S. to Russia to be used by its military and intelligence services,” said Executive Assistant Director Larissa L. Knapp of the FBI's National Security Branch. “Any attempt to circumvent U.S. laws, sanctions, and regulations will not be tolerated, and thanks to a coordinated interagency effort, our national security and our partners' are stronger than ever.”
According to court documents, Kahn is the owner of Senesys Incorporated, which is based in California, and Sensor Design Association, which maintains a contact address in Brooklyn. As alleged in the complaint and other public filings, Kahn operated these two businesses – ostensibly involved in “security software development” and the testing of silicon wafers for military avionics and space users – through which he engaged in a years-long conspiracy to acquire and export sensitive and sophisticated electronics from the United States to a sanctioned Russian business without acquiring the appropriate licenses. The Russian business, Joint Stock Company Research and Development Center ELVEES (Elvees) was added to the Commerce’s Department’s Entity List in March 2022 and was sanctioned by the Treasury Department in September 2022 because of its critical role in facilitating Russia’s military and its invasion of Ukraine.
For example, according to the complaint, in 2019, Kahn exported multiple U.S.-origin microcontrollers to Elvees in Russia, and in 2022, he exported U.S.-origin network interface controllers and a radio-frequency transmitter to Elvees in Russia by way of a Hong Kong-based shipping company. Each of these items required an export license from the Commerce Department, which Kahn did not obtain, and were controlled for national security and anti-terrorism reasons.
As alleged, Kahn also arranged for Elvees to continue to receive semiconductors manufactured in Taiwan following Russia’s invasion of Ukraine in February 2022. Specifically, after the Taiwanese company that manufactured Elvees-designed semiconductors refused to ship those semiconductors to Russia, Kahn arranged for the semiconductors to be sent to the United States and then re-exported them to Russia, often through a shipping company based at John F. Kennedy International Airport in Queens, New York. Kahn also used Hong Kong and other locations around the world as transshipment points to evade U.S. export laws and regulations and to conceal the Russian end users.
Even after Elvees was added the Entity List, Kahn continued to work with the company. In May 2022, Kahn emailed design guidance for an Elvees-branded microchip to a Taiwan manufacturer. Subsequently, Kahn shipped thousands of units of this microchip – through a New York-based shipper – to a Hong Kong shipping company, and then to a company located in mainland China. Kahn noted in communications with the Hong Kong shipping company that he received a “call from Russia” about the Chinese business to which he was directing the goods.
If convicted, Kahn faces a maximum penalty of 20 years in prison for conspiracy to violate the ECRA.
The FBI and Department of Commerce’s BIS New York Field Office are investigating the case. The U.S. Attorney’s Office for the Central District of California provided significant assistance.
Assistant U.S. Attorneys Craig R. Heeren, Artie McConnell, and Matthew Skurnik for the Eastern District of New York and Trial Attorney Scott Claffee of the National Security Division’s Counterintelligence and Export Control Section are prosecuting the case, with assistance from Litigation Analysts Joseph Levin and Mary Clare McMahon.
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.
A complaint is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Kahn complaintকুইন্সে সহিংস অপহরণের জন্য সাত ব্যক্তিকে অভিযুক্ত করা হয়েছেRead the Press Release
আজ ব্রুকলিনের ফেডারেল কোর্টে পূর্বেকার একটি রায় বাতিল করে সৈয়দ রুবেল আহমেদ (Syed Rubel Ahmed), শাহাদ আলম (Shahed Alom), আবু চৌধুরী (Abu Chowdhury), আঞ্জু খান (Anzu Khan) এবং সুলতানা রাজিয়া (Sultana Razia)-এর বিরুদ্ধে অপহরণ এবং জন ডো-1 (John Doe-1)-কে অপরহণের ষড়যন্ত্র করার অভিযোগে; আবু চৌধুরী এবং ইফফাত লুবনার (Iffat Lubna) বিরুদ্ধে জন ডো-2 (John Doe-2)-কে অপরহণ করার জন্য ষড়যন্ত্র করার জন্য; এদের বিরুদ্ধে চার্জ পেশ করার বিষয়টি ঘোষণা করা হয়েছে। আবু চৌধুরি ও তার স্ত্রী লুবনা এর বিরুদ্ধে এর আগে উল্লিখিত অভিযোগে জন ডো-2 অপহরণের অভিযোগ আনা হয়েছিল। আসামী এবং ভুক্তভোগীগণ Queens একই জাতিগত সম্প্রদায়ের সদস্য। আহমেদ, আলম, খান ও রাজিয়া-কে আজ গ্রেপ্তার করা হয়েছে এবং আজ বিকেলে ইউনাইটেড স্টেটস ম্যাজিস্ট্রেট জজ Joseph A. Marutollo এর সামনে হাজির করা হবে। আবু চৌধুরি ও লুবনা-কে এর আগে গ্রেপ্তার করা হয়েছিল এবং পরবর্তী তারিখে তাদের বিরুদ্ধে অভিযোগ গঠন করা হবে। সপ্তম আসামী পলাতক রয়েছেন।
ব্রিয়ন পিস (Breon Peace), ইউনাইটেড স্টেটস অ্যাটর্নি ফর দ্য ইস্টার্ন ডিস্ট্রিক্ট অব নিউ ইয়র্ক, জেমস স্মিথ (James Smith), অ্যাসিস্ট্যান্ট ডিরেক্টর-ইন-চার্জ, ফেডারেল ব্যুরো অব ইনভেস্টিগেশন, নিউ ইয়র্ক ফিল্ড অফিস (FBI) এবং এডওয়ার্ড এ. ক্যাবান (Edward A. Caban), কমিশনার, নিউ ইয়র্ক সিটি পুলিশ ডিপার্টমেন্ট (NYPD), গ্রেফতার ও অভিযোগের বিষয়টি ঘোষণা করেছে।
ইউনাইটেড স্টেটস অ্যাটর্নি পিস বলেন, “অভিযোগ অনুসারে, আসামীগণ নির্মমভাবে শারীরিক ও যৌন নির্যাতনের মতো ঘটনা ঘটিয়েছে”। “আসামীগণ অপরাধকে আরো গুরুত্বর করতে ভুক্তভোগীদের সাথে তাদের শেয়ার করা জাতিগত পটভূমিকে কাজে লাগিয়েছে বলে অভিযোগ রয়েছে। এই আসামীগণের কারণে ভুক্তভোগী হওয়া যেকোনো কাউকে ইউনাইটেড স্টেটস অ্যাটর্নি'স অফিসের https://www.justice.gov/usao-edny/report-crime ঠিকানায় গিয়ে যোগাযোগ করার জন্য আমি অনুরোধ জানাচ্ছি।”
মি. পিস তদন্তে সহায়তা করার জন্য জয়েন্ট রোবারি ভায়োলেন্ট ক্রাইমস টাস্ক ফোর্সকে ধন্যবাদ জানান যেটি FBI-এর এজেন্ট এবং NYPD-এর গোয়েন্দাদের সমন্বয়ে গঠিত।
“অপহরণের শিকার হওয়া ব্যক্তিদের উপর এই বিবাদীরা যে সহিংস শারীরিক এবং যৌন অত্যাচার করেছে, তা অত্যন্ত উদ্বেগজনক বিষয়। আমাদের সমাজে সহিংস অপরাধের কোনো জায়গা নেই এবং যারা এই ধরনের অপরাধ করবে, তারা আমাদের বিচারব্যবস্থার পরম শক্তির সম্মুখীন হবে -- সেটা যাতে ঘটে, FBI এবং FBI নিউ ইয়র্ক জয়েন্ট ভায়োলেন্ট ক্রাইম টাস্ক ফোর্স তা নিশ্চিত করবে,” FBI অ্যাসিস্ট্যান্ট ডিরেক্টর-ইন-চার্জ স্মিথ বলেন।
NYPD-এর কমিশনার কাবান (Caban) বলেন, “NYPD-এর পুরুষ ও মহিলারা এই সমস্ত অত্যন্ত গুরুতর অভিযোগের নিন্দা করে। আমরা ও আমাদের আইন বাস্তবায়নকারী পার্টনাররা সহিংসতা এবং অত্যাচার সংক্রান্ত সব অভিযোগকে অতি গুরুত্ব সহকারে বিবেচনা করে এবং New York City রাস্তা থেকে এই ধরনের অপরাধ নির্মূল করার ব্যাপারে প্রতিজ্ঞাবদ্ধ।”
27 মার্চ 2023 তারিখে Jamiaca, Queens জন ডো-1 এর অপহরণ
অপহরণের অভিযোগ এবং আদালতের দাখিলার বিবরণ অনুযায়ী 27 মার্চ 2023 তারিখে প্রায় 14 ঘণ্টা ধরে আহমেদ, আলম, চৌধুরী, খান এবং রাজিয়া Jamiaca, Queens একটি পাবলিক স্ট্রিটের একজন ভুক্তভোগী (“John Doe-1”)-কে অপহরণ ও লাঞ্ছিত করেছিল। 181st Street এবং Hillside Avenue-এর আশেপাশে জন ডো-1 হাঁটাহাটি করার সময় চৌধুরী তাকে হোন্ডা মিনিভ্যানে (SUV) জোর করে তুলে নিয়ে যাওয়ার অভিযোগ করেছে। চৌধুরী মিনিভ্যানের ভিতরেই জন ডো-1 কে মারতে শুরু করেছিলেন। অপহরণের সময়, চৌধুরী জন ডো-1 কে মিনিভ্যান থেকে বের হতে বাধ্য করেছিলেন এবং ভুক্তভোগীকে আবাসিক এলাকায় নগ্নাবস্থায় দাঁড় করিয়ে ছবি তুলছিলেন। অপহরণের সময় আহমেদ, আলম, খান এবং রাজিয়া সেলুলার টেলিফোনের মাধ্যমে আবু চৌধুরী এর সাথে যোগাযোগ করে সারা রাত জুড়ে বিভিন্ন পয়েন্টে চৌধুরী এর সাথে সাক্ষাৎ করেছিলেন এবং জন ডো-1 কে আরো মারধর ও হত্যার হুমকিতে অংশ নিয়েছিলেন। জন ডো-1 অপহরণকারীদের নিকট পানি পানের জন্য আকুতি জানালে আসামীগণ তাকে চেতনানাশক জল মিশ্রিত দিয়েছিল। পরবর্তীতে জন ডো-1 জ্ঞান হারিয়ে ফেলে এবং অপহরণের পরেরদিন স্থানীয় একটি হাসপাতালে তার জ্ঞান ফিরে পায়।
11 মে 2023 তারিখে Woodside, Queens জন ডো-2 এর অপহরণ
অপহরণের অভিযোগ এবং আদালতের দাখিলার বিবরণ অনুযায়ী 11 মে 2023 তারিখ থেকে শুরু হয়ে প্রায় তিন চৌধুরী এবং লুবনা জন ডো-1 কে অপহরণ ও লাঞ্ছিত করেছিল। জন ডো-2 Woodside, Queens 72 তম স্ট্রিট এবং Broadway-এর পাশের একটি রেস্তোরাঁর বাইরে লুবনা এর সাথে দেখা করার জন্য অপেক্ষা করছিলেন তখন চৌধুরী জন ডো-2 কে জোর করে একটি মিনিভ্যানে তুলে মারধর শুরু করেন। অপহরণের সময়, চৌধুরী এবং লুবনা জন ডো-2 কে একটি হোটেলে নিয়ে গেলে সেখানে চৌধুরী জন ডো-2 কে যৌন হয়রানি করেন। এছাড়াও চৌধুরী ভুক্তভোগীর নিরাপত্তার জন্য $20,000 দাবি করে জন ডো-2 এর বাবার কাছে মুক্তিপণের জন্য কল করেছিলেন। যেখানে অপহরণের ঘটনাটি ঘটেছে সেটি হলো একটি জাতিগত সম্প্রদায় সেখানে আসামীগণ ভুক্তভোগীকে সতর্ক করে বলেছিল যে তিনি যদি আইন প্রয়োগকারীকে সহযোগিতা করে তাহলে তারা সহজেই তাকে খুঁজে পেতে পারে। অপহরণের তৃতীয় দিনে, চৌধুরী জন ডো-2 কে বেঁধে একটি পরিত্যক্ত বাড়িতে ফেলে রেখে যান। জন ডো-2 তার বাঁধন দাঁত দিয়ে কেটে, জানালা ভেঙে এবং পাশের বাসিন্দাদের 911 নম্বরে কল করতে বলে নিজেকে মুক্ত করতে সক্ষম হয়েছিল।
অভিযুক্তের অভিযোগগুলো হলো নিছক অভিযোগ এবং আসামীগণ হলো দোষী প্রমাণিত না হওয়া পর্যন্ত তারা নির্দোষ বলে মনে করা হয়। সবগুলোতে দোষী সাব্যস্ত হলে আসামিদের সর্বোচ্চ যাবজ্জীবন কারাদণ্ড হতে পারে।
সরকারের মামলাটি অফিস'স জেনারেল ক্রাইম সেকশন (Office’s General Crimes Section) কর্তৃক পরিচালিত হচ্ছে। অ্যাসিস্ট্যান্ট ইউনাইটেড স্টেটস অ্যাটর্নি স্টেফানি পাক (Stephanie Pak) এবং ভিনসেন্ট চিয়াপিনি (Vincent Chiappini) প্যারালিগাল বিশেষজ্ঞ ক্যাটরিনা বাতিস্তা (Katrina Batista)-এর সাথে যৌথভাবে প্রসিকিউশনের দায়িত্বে রয়েছেন।
পূর্বে অভিযুক্ত আসামীগণ:
আবু চৌধুরি (ABU CHOWDHURY)
বয়স: 34
জ্যামাইকা, কুইন্স (Jamaica, Queens)
ইফাত লুবনা (IFFAT LUBNA)
বয়স: 24
জ্যামাইকা, কুইন্স (Jamaica, Queens)
নতুনভাবে-অভিযুক্ত বিবাদীগণ:
সৈয়দ রুবেল আহমেদ (SYED RUBEL AHMED)
বয়স: 43
জ্যামাইকা, কুইন্স (Jamaica, Queens)
শাহেদ আলম (SHAHED ALOM)
বয়স: 29
জ্যামাইকা, কুইন্স (Jamaica, Queens)
আঞ্জু খান (ANZU KHAN)
বয়স: 28
জ্যামাইকা, কুইন্স (Jamaica, Queens)
সুলতানা রাজিয়া (SULTANA RAZIA)
বয়স: 38
উডসাইড কুইন্স (Woodside, Queens)
E.D.N.Y. Docket No. 23-CR-278 (S-1) (NRM)
Seven Individuals Indicted for Violent Kidnappings in QueensRead the Press Release
Earlier today, in federal court in Brooklyn, a superseding indictment was unsealed charging Syed Rubel Ahmed, Shahed Alom, Abu Chowdhury, Anzu Khan and Sultana Razia with one count of kidnapping and one count of conspiracy to kidnap John Doe-1; Abu Chowdhury and Iffat Lubna with one count of conspiracy to kidnap John Doe-2. Abu Chowdhury and his wife Lubna were previously charged with kidnapping John Doe-2 in the underlying indictment. The defendants and the victims are members of the same ethnic community in Queens. Ahmed, Alom, Khan and Razia were arrested today and are scheduled to be arraigned this afternoon before United States Magistrate Judge Joseph M. Marutollo. Abu Chowdhury and Lubna were previously arrested and will be arraigned on the superseding indictment at a later date. A seventh defendant remains at large.
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 arrests and charges.
“As alleged, the defendants carried out acts of brutal physical and sexual assault of the victims,” stated United States Attorney Peace. “The defendants allegedly exploited their shared ethnic background with the victims in furtherance of the crimes. I urge anyone who believes they were victims of these defendants to contact the United States Attorney’s Office at https://www.justice.gov/usao-edny/report-crime.”
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.
“The violent physical and sexual assaults these defendants allegedly inflicted upon the victims they kidnapped were disturbing beyond measure. Violent crimes of any nature have no place in our society, and those who perpetrate such crimes will find themselves facing the full extent of our justice system--the FBI and the FBI New York Joint Violent Crimes Task Force is here to make sure of it,” stated FBI Assistant Director-in-Charge Smith.
“The men and women of the NYPD condemn these deeply disturbing allegations,” stated NYPD Commissioner Caban. “We and our law enforcement partners take extremely seriously all accusations of violence and abuse and remain dedicated to eradicating such criminal behavior from the streets of New York City.”
The March 27, 2023 Kidnapping of John Doe-1 in Jamaica, Queens
As alleged in the superseding indictment and detailed in court filings, over the course of approximately 13 hours on March 27, 2023, Ahmed, Alom, Chowdhury, Khan, Razia and a co-conspirator, abducted and assaulted a victim (“John Doe-1”) off a public street in Jamaica, Queens. John Doe-1 had been walking in the vicinity of 181st Street and Hillside Avenue when Chowdhury allegedly forced him into a Honda SUV. Inside the SUV, Chowdhury began beating John Doe-1 as the co-conspirator drove them around Queens. During the kidnapping, Chowdhury forced John Doe-1 to exit the SUV and filmed the victim standing naked in a residential neighborhood. Ahmed, Alom, Khan and Razia communicated with Abu Chowdhury via cellular telephone during the kidnapping, met Chowdhury at different points throughout the night, and took part in further beating and threats to kill John Doe-1. When John Doe-1 begged for water from the kidnappers, the defendants gave him water laced with a sedative. John Doe-1 later lost consciousness and woke up in a local hospital the day after he had been abducted.
The May 11, 2023 Kidnapping of John Doe-2 in Woodside, Queens
As alleged in the superseding indictment and detailed in court filings, over the course of approximately three days beginning on May 11, 2023, Chowdhury and Lubna abducted and assaulted John Doe-2. John Doe-2 had been waiting to meet Lubna outside a restaurant in the vicinity of 72nd Street and Broadway in Woodside, Queens, when Chowdhury forced John Doe-2 into a minivan and began beating him. During the kidnapping, Chowdhury, Lubna and a co-conspirator took John Doe-2 to a hotel, where Chowdhury sodomized John Doe-2. Chowdhury also made a ransom call to John Doe-2’s father, demanding $20,000 for the victim’s safety. The neighborhood where the abduction occurred is an ethnic community which the defendants exploited in warning the victim that they could easily find him if he cooperated with law enforcement. On the third day of the kidnapping, Chowdhury tied up and blindfolded John Doe-2, leaving him at an abandoned house. John Doe-2 was able to free himself by chewing through his restraints, breaking open a window and asking residents in the neighborhood to call 911.
The charges in the indictment are allegations, and the defendants are presumed innocent unless and until proven guilty. If convicted of all counts, the defendants face a maximum of life imprisonment.
The government’s case is being handled by the Office’s General Crimes Section. Assistant United States Attorneys Stephanie Pak and Vincent Chiappini are in charge of the prosecution with assistance from Paralegal Specialist Katrina Batista.
Defendants Previously Charged:
ABU CHOWDHURY
Age: 34
Jamaica, QueensIFFAT LUBNA
Age: 24
Jamaica, QueensNewly-Charged Defendants:
SYED RUBEL AHMED
Age: 43
Jamaica, QueensSHAHED ALOM
Age: 29
Jamaica, QueensANZU KHAN
Age: 28
Jamaica, QueensSULTANA RAZIA
Age: 38
Woodside, QueensE.D.N.Y. Docket No. 23-CR-278 (S-1) (NRM)
Ex-Federal Correction Officer Pleads Guilty to Taking Bribes in Exchange for Smuggling Contraband into Federal Jail in BrooklynRead the Press Release
Earlier today, in federal court in Brooklyn, former federal correction officer Quandelle Joseph, formerly employed by the United States Bureau of Prisons (BOP), pleaded guilty to receiving bribes in exchange for providing contraband to individuals detained at the Metropolitan Detention Center (MDC) in Brooklyn. Today’s proceeding was held before United States District Judge Dora L. Irizarry. When sentenced, Joseph faces up to 15 years in prison. Joseph resigned from the BOP during the pendency of the case.
Breon Peace, United States Attorney for the Eastern District of New York, and Ryan T. Geach, Special Agent-in-Charge, Department of Justice, Office of the Inspector General, Northeast Region, announced the guilty plea.
According to court documents and facts presented at the guilty plea proceeding, Joseph became a correction officer at the MDC in May 2020. During his employment, Joseph accepted tens of thousands of dollars from inmates in exchange for smuggling narcotics, cigarettes, and cell phones into the MDC. In one instance, Joseph entered a unit he was not guarding during a lockdown, opened an inmate’s cell and provided him with contraband. Several hours later, MDC staff smelled marijuana in that inmate’s cell and recovered a contraband cell phone during a search of the cell; Joseph was to be paid $12,000 from this inmate for bringing in contraband. Joseph also accepted bribes to smuggle contraband into the MDC to another inmate, who then sold the contraband widely throughout his unit. Joseph also warned the inmate about upcoming contraband searches at the MDC. For example, on January 26, 2021, Joseph texted an inmate from whom he was taking bribes: “Tighten up search comin clean phones out call logs n text n try to stash it.” The next day, Joseph texted the inmate: “keep your phones cleannnnnnnnnn erase texts and call logs every night.”
The government’s case is being handled by the Office’s Public Integrity Section. Assistant United States Attorneys Philip Pilmar and Sara K. Winik are in charge of the prosecution.
The Defendant:
QUANDELLE JOSEPH
Age: 33
Brooklyn, New YorkE.D.N.Y. Docket No. 23-CR-306 (DLI)
Brooklyn Woman Charged with Trafficking 18 Firearms into BrooklynRead the Press Release
Earlier today, at the federal courthouse in Brooklyn, a five-count indictment was unsealed charging Ariana Charles with conspiring to illegally traffic 18 firearms to Brooklyn. The defendant is charged under the gun trafficking provisions of the Bipartisan Safer Communities Act, which Congress and the President enacted in June 2022. The Act is the first federal statute specifically designed to target gun trafficking. Charles is also charged with three narcotics-related charges, including distribution of fentanyl and cocaine base, and a conspiracy to do the same. The defendant was arrested this morning and is scheduled to be arraigned this afternoon before United States Magistrate Judge Joseph A. Marutollo.
Breon Peace, United States Attorney for the Eastern District of New York, Frank A. Tarentino, III, Special Agent-in-Charge, Drug Enforcement Administration, New York Division (DEA), and Edward A. Caban, Commissioner, New York City Police Department (NYPD), announced the charges.
“As alleged, the defendant brazenly trafficked firearms and deadly drugs to the streets of Brooklyn, feeding the cycle of gun violence and drug abuse endangering our community,” stated United States Attorney Peace. “This Office will not relent in its efforts to keep the community safe by investigating and prosecuting those who seek to profit from the proliferation of guns and fentanyl which have destroyed so many lives.”
“DEA and our law enforcement partners work to stop the invasion of guns, drugs and violence that invade our neighborhoods causing unimaginable casualties along the way,” stated DEA Special Agent-in-Charge Taremtino. “This indictment reinforces our commitment to saving lives through comprehensive investigations at the behest of public safety and health. I commend the DEA New York Division, New York City Police Department and the U.S. Attorney’s Office Eastern District of New York for their work throughout this investigation.”
“Today’s indictment underscores the destructive threat that illegal guns and drugs continue to pose on the streets of New York City, as well as our unwavering commitment to delivering public safety and improving quality of life in every community,” stated NYPD Commissioner Caban. “Together with our partners at the DEA and the office of the U.S. Attorney for the Eastern District of New York, NYPD investigators remain dedicated to this critical mission.”
According to the indictment and court documents, Charles personally conducted firearms sales to an undercover member of law enforcement (the UC) in and around New York City Housing Authority’s Breukelen Houses which is located in Canarsie, Brooklyn. Transactions also took place outside apartment buildings and in shopping center parking lots in broad daylight. Several guns were purchased in Virginia and Georgia and transported to New York. The UC told Charles and her co-conspirators that he was a drug dealer who needed guns and that he was going to resell some of the guns and drugs that were provided to him. For example, messages between the UC and Charles show that the UC told Charles that he intended to “flip” the firearms Charles sold him so that he could resell them to others. One firearm sold had a defaced serial number, making it hard for law enforcement to trace. Charles also sold semi-automatic rifles.
In addition to firearm sales, Charles sold drugs, including crack cocaine and fentanyl. The fentanyl allegedly sold by the defendant was disguised as Oxycodone pills.
The charges in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty. If convicted of the charges, Charles faces up to 20 years in prison.
Assistant United States Attorneys Adam Amir, Irisa Chen, and James Simmons are in charge of the prosecution.
The Defendants:
ARIANA CHARLES
Age: 28
Brooklyn, New YorkE.D.N.Y. Docket No. 24-CR-8
Four Indicted for Defrauding Dozens of Victims of More Than $7.5 MillionRead the Press Release
An indictment was unsealed earlier today in federal court in Brooklyn charging Daniel Vernon, Yveler Marcellus, Felix Marcial and Tatiana Williams with conspiracy to commit mail and wire fraud, and conspiracy to commit money laundering. Defendants Vernon and Marcial were arrested earlier today in the Eastern District of New York and their initial appearances were held this afternoon before United States Magistrate Judge Joseph A. Marutollo.
Defendant Marcellus is scheduled to be arraigned on January 10, 2024 before Judge Marutollo. Defendant Williams was arrested earlier this morning in Florida, and her initial appearance is scheduled for this afternoon in Miami before United States Magistrate Judge Lisette M. Reid.
Breon Peace, United States Attorney for the Eastern District of New York and Daniel B. Brubaker, New York Division Inspector-in-Charge, United States Postal Inspection Service, announced the arrests and charges.
“As alleged, while the defendants called unsuspecting individuals with promises of safeguarding their money and refinancing their mortgages, they lied and actually stole more than $7.5 million from over 50 victims,” stated United States Attorney Peace. “We will continue to aggressively prosecute those who commit financial fraud and work to recover and return victims’ stolen money. We urge the public to be extremely wary of sending money to people they don’t know, as they may be trying to swindle you.”
“Postal Inspectors will relentlessly pursue anyone who misuses the U.S. mail to commit fraud and take advantage of the American public. The defendants, through their fraudulent tech and mortgage refinancing schemes, allegedly victimized over 50 individuals and stole well over $7 Million. Inspectors and our law enforcement partners at the U.S. Attorney’s Office, Eastern District of New York, work diligently to ensure these individuals are brought to justice and held accountable. Today’s arrests are proof of that fact. The U.S. Postal Inspection Service is continuously working to protect and educate consumers regarding various fraudulent schemes that in this case claimed millions of dollars from innocent victims,” said United States Postal Inspection Service Inspector-In-Charge Brubaker.
As alleged in the indictment, between January 2022 and May 2023, the defendants conducted fraudulent “tech” and “mortgage refinancing” schemes, through which they targeted victims by phone and convinced them to send cash, checks, or money orders to the defendants at various addresses in the Eastern District of New York.
Through the tech scheme, the defendants and their co-conspirators falsely represented to individual victims that victim bank accounts were compromised, that individuals were attempting to access the victim’s computer to gain access to the victim’s funds, that individuals at the victim’s financial institution were involved in the scheme to steal the victim’s money and that the victim’s money would be kept safe if the victim sent the funds to the individual on the telephone. Each victim was then directed to send a check, money order or cash to an address provided by the conspirators, under the guise that the victim’s funds would be kept safe with that person.
Under the mortgage refinancing scheme, the defendants and their co-conspirators falsely represented to victims that the victims could refinance their mortgages at a beneficial interest rate by diverting their mortgage payments to an address provided by the defendants and their co-conspirators. Each victim was then directed to send a check, money order or cash to an address provided by person on the phone, under the guise that the payment was being made toward the victim’s refinanced mortgage.
After the victims sent their checks, cash, or money order to the address provided to them by the individual they spoke with over the phone, the defendants and their co-conspirators retrieved the mailings from the address it was sent to and deposited it in their own bank accounts. In total, the defendants stole more than $7.5 million dollars from more than 50 victims.
The charges in the indictment are allegations, and the defendants are presumed innocent unless and until proven guilty. If convicted, the defendants each face a maximum sentence of twenty years’ imprisonment on each of the two counts. The government’s investigation is ongoing.
The government’s case is being handled by the Office’s General Crimes Section. The government’s case is being prosecuted by Assistant United States Attorney Elias Laris.
The Defendants:
DANIEL G. VERNON (also known as “Daquan Mitchell,” “Daniel George,” and “Cory Fortune”)
Age: 28
Ozone Park, New YorkYVELER MARCELLUS
Age: 30
Brooklyn, New YorkFELIX MARCIAL
Age: 31
Brooklyn, New YorkTATIANA WILLIAMS
Age: 26
Miami, FloridaE.D.N.Y. Docket No. 24-CR-9 (CBA)
Long Island-Based Bloods Gang Members Indicted on Racketeering and Murder ChargesRead the Press Release
A 32-two-count superseding indictment was unsealed today in federal court in Central Islip charging three Bloods gang members, Dwayne Murray, Kendrick Seymore and Lavalle Wilson, with racketeering, racketeering conspiracy, attempted murder, various firearms charges and narcotics related offenses. Additionally, Murray is charged with the June 2020 murder of Wayne Cherry in Baywood, New York, and Seymore is charged with the July 23, 2021 murders of Nyasia Knox, Diamond Schick and Richard Castano in Farmingville, New York. The defendants are presently in custody and will be arraigned on the superseding indictment at a later date.
Breon Peace, United States Attorney for the Eastern District of New York, Raymond A. Tierney, District Attorney, Suffolk County District Attorney’s Office (SCDAO), James Smith, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Tommy Kalogiros, Assistant Special Agent-in-Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives, New York Field Office (ATF), announced the superseding indictment.
“Today’s superseding indictment speaks loudly to this Office’s commitment to making our communities safer by holding ruthless gang members accountable for the murders, gun violence and narcotics trafficking they allegedly carried out on behalf of the Bloods,” stated United States Attorney Peace. “I commend our prosecutors and law enforcement partners for their tireless work dismantling gangs operating on Long Island.”
Mr. Peace also expressed his appreciation to the Suffolk County Police Department for their unwavering dedication to eradicating gang violence on Long Island.
“My office is committed to eradicating violent gangs and bringing prosecutions on both the state and federal level where appropriate. Joint prosecutions in serious cases with our federal partners better protects Suffolk County residents. I thank United States Attorney Peace, the FBI, and the ATF, for working together with my office and the Suffolk County Police Department to successfully collaborate on this significant prosecution,” stated Suffolk County District Attorney Tierney.
“These indictments demonstrate the collective commitment and investigative efforts between ATF NY and law enforcement partners, utilizing Crime Gun Intelligence to connect the dots between the many incidents of violence. Brazen acts of violence will never become acceptable to us. ATF NY is determined to root out the drivers of the deadly cycle of violence in our communities. We will continue to work tirelessly alongside our partners and appreciate the efforts of the ATF NY Long Island Field Office, FBI, Suffolk County Police Department and EDNY,” stated ATF Assistant Special Agent-in-Charge Kalogiros.
As alleged in the indictment, the defendants engaged in numerous acts of violence on the gang’s behalf, including robberies, home invasions, and vicious shootings and murders. Specifically, according to the superseding indictment and statements made in court proceedings, on the evening of June 12, 2020, Murray fatally shot Cherry in the head in the backyard of a vacant home in Baywood. His body was found two days later.
Additionally, on July 23, 2021, Seymore and an accomplice, both of whom were armed with guns, entered Richard Castano’s apartment in Farmingville to rob him. During the course of the robbery, Seymore shot and killed Castano, as well Diamond Schick and Nyasia Knox, who were also in the apartment. A one-year old child was in the apartment at the time of the triple murder, but was left physically unharmed.
The defendants also used their membership in the Bloods street gang to distribute large quantities of narcotics in Suffolk County. In order to protect their supply of narcotics, and secure their ability to distribute the narcotics, the defendants possessed multiple firearms.
If convicted, the defendants each face a maximum of life in prison. Murray and Seymore face the possibility of the death penalty.
The charges in the superseding indictment are allegations, and the defendants are presumed to be innocent unless and until proven guilty.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorneys Mark E. Misorek and Andrew P. Wenzel and Special Assistant United States Attorneys Donald N. Barclay and Dena C. Rizopoulos are in charge of the prosecution.
The Defendants
DWAYNE MURRAY (also known as “Wayno”)
Age: 33
Coram, New YorkKENDRICK SEYMORE (also known as “KR”)
Age: 22
Coram, New YorkLAVALLE WILSON (also known as “Val,” Skip,” “Flip” and “Wes”)
Age: 30
Shirley, New YorkE.D.N.Y. Docket No. 22-CR-401 (JMA)
Four Gang Members Charged with Multiple Shootings and Armed CarjackingsRead the Press Release
A superseding indictment was filed today in federal court in Brooklyn charging Amaury Guzmán, Ian Diez, Ruffi Fernández and Jonathan Rodríguez, members of the Trinitarios street gang, with a string of violent crimes including multiple shootings and armed carjackings between November 2022 and February 2023. The defendants were previously arrested and 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 charges.
“As alleged, the defendants repeatedly and violently terrorized the community with multiple shootings and armed carjackings,” stated United States Attorney Peace. “Members of our community should not have to live in fear of gun violence in their homes, on the streets, or in their cars. My Office is dedicated to ensuring the safety of the community and bringing those who shoot and rob community members to justice.”
“Taking violent offenders off the street should send a message to Trinitarios members and their associates that violence and senseless murder will not be tolerated” said James Smith, Assistant Director in Charge of the FBI New York Field Office. “New Yorkers should have the opportunity to live, work, and play without fear, and we ask the community to join us in our stand against violence. You can make a difference. If you have information about crime in your community, call our tip line at 1-800-CALL-FBI (1-800-225-5324), or submit information online to tips.fbi.gov to help ensure a safe environment in all our neighborhoods,” stated FBI Assistant Director-in-Charge Smith.
The November 19, 2022 Shooting
As alleged in the indictment and other court filings, Guzmán, Fernández and others conspired to rob a marijuana dealer in Queens on November 19, 2022. Guzmán approached the victim as he sat inside his parked car with a companion in the passenger seat. Guzmán fired a shot into the victim’s car, wounding the passenger in the neck. The passenger survived but underwent extensive surgery to remove the bullet from his neck.
The November 20, 2022 Murder
The following day, on November 20, 2022, shortly after midnight, Guzmán and others stole a white Mercedes Benz sedan from the driveway of a residence in Carteret, New Jersey and drove it to Queens. Later that evening using the stolen Mercedes, Guzmán and Rodríguez approached the driver of a parked BMW sports coupe. Rodriguez approached the driver at gunpoint and fired in his direction as the victim attempted to flee. The victim was shot once in the back, quickly lost control of his car and then flipped over onto a sidewalk. The victim was shot once in the back and died from the gunshot wound moments later.
The November 22, 2022 Armed Carjacking
Two days later, on November 22, 2022, Guzmán, Rodríguez and others once again used the stolen Mercedes to approach a victim who had recently parked his BMW X5 on a residential block in Queens. The crew attacked the victim at gunpoint and stole the keys to his BMW X5. They then fled in the stolen Mercedes and in the victim’s BMW X5 only to crash into each other minutes later. Rodríguez was arrested near the scene of the collision, but Guzmán managed to escape. A 9mm ghost gun was recovered from the wrecked Mercedes which, based on ballistic analysis, was the same gun used in the fatal and non-fatal shootings days earlier based on ballistic analysis.
The December 12, 2022 Shooting
Several weeks later, on December 12, 2022, Guzmán, Fernández and Diez approached the driver of a Range Rover in Queens intending to carjack him. Diez menaced the driver with a hard object. As the victim attempted to flee, Fernández fired a gun towards the Range Rover causing a bullet to lodge in the center console of the victim’s car.
The February 1, 2023 Armed Carjacking
On February 1, 2023, Guzmán and others attacked a victim at gunpoint on a residential block in Queens and struck him in the head with their guns while stealing the keys to his Ford Mustang. They fled in the victim’s Mustang and in a stolen Dodge Charger that they used to carry out the carjacking. Lacerations to the victim’s head required hospitalization.
If convicted, Guzmán and Rodriguez are facing up to a life sentence, Fernandez is facing up to 20 years, and Diez is facing up to 15 years. The charges in the indictment are allegations, and the defendants are presumed innocent until proven guilty.
The government’s case is being handled by the Office’s Organized Crime and Gangs Section. Assistant United States Attorneys Andy Palacio and Gabriel Park are in charge of the prosecution with assistance from Paralegal Specialists Stephanie Heyward and Theodore Rader.
The Defendants:
AMAURY GUZMÁN
Age: 24
Brooklyn, NYIAN DIEZ (also known as “Gallina”)
Age: 19
Brooklyn, NY
RUFFI FERNÁNDEZ (also known as “Mojatoto”)
Age: 26
Staten Island, NY
JONATHAN RODRÍGUEZ
Age: 22
Queens, NYE.D.N.Y. Docket No. 23-CR-107 (MKB)
Pornhub Parent Company Admits to Receiving Proceeds of Sex Trafficking and Agrees to Three-Year MonitorRead the Press Release
Earlier today, in federal court in Brooklyn, Aylo Holdings S.A.R.L. (formerly MindGeek S.A.R.L.) (Aylo), parent company to Pornhub.com, was arraigned on a charge of engaging in unlawful monetary transactions involving sex trafficking proceeds, after entering into a deferred prosecution agreement (DPA) with the United States Attorney’s Office for the Eastern District of New York to resolve the charge. The proceeding was held before United States Chief Magistrate Judge Lois Bloom. The DPA provides for the appointment of a monitor (Monitor) for three years and for payments to be made to the United States and to individuals adversely affected by the underlying sex trafficking.
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 deferred prosecution agreement.
Mr. Peace also thanked the Victim/Witness Unit of the U.S. Attorney’s Office for the Southern District of California, and the FBI’s San Diego Field Office for their valuable assistance in this case.
“This deferred prosecution agreement holds the parent company of Pornhub.com accountable for its role in hosting videos and accepting payments from criminal actors who coerced young women into engaging in sexual acts on videos that were posted without their consent,” stated United States Attorney Peace. “This Office is committed to ensuring internet safety and protecting people from online sexual exploitation. It is our hope that this resolution, which includes certain agreed payments to the women whose images were posted on the company’s platforms and an independent monitorship brings some measure of closure to those negatively affected. This resolution will not only provide oversight over one of the largest online content distributors in the world and ensure the company’s lawful behavior, but it will also develop industry-wide standards for safety and compliance.”
“Motivated by profit, Aylo Holdings knowingly enriched itself by turning a blind eye to the concerns of victims who communicated to the company that they were deceived and coerced into participating in illicit sexual activity” stated FBI Assistant Director-in-Charge Smith. “Make no mistake, any entity that engages in sexual exploitation will be held to account for the mental anguish and terror imposed on victims. I hope today’s proceedings bring a sense of justice to the victims in this case as they move forward in their lives.”
Unlawful Receipt of Sex Trafficking Proceeds
Aylo operates free and paid adult websites that allow third parties to post and distribute adult videos, including on its websites Pornhub.com and PornhubPremium.com. As part of its business, Aylo contracted and/or partnered with adult entertainment companies who were given personalized channels on Aylo’s websites, which Aylo promoted and from which Aylo profited.
Beginning in 2009, Aylo hosted pornographic videos created by GirlsDoPorn (GDP) founder Michael Pratt and his co-conspirators (collectively referred to as the “GDP Operators”) on Aylo’s websites, including Pornhub.com. The GDP Operators owned and operated a pornographic production company and online pornography websites called GDP and “GirlsDoToys” (GDT). In 2019, a federal grand jury in the Southern District of California returned an indictment against the GDP Operators, for, among other charges, sex trafficking offenses, for deceiving and coercing young women to appear in sex videos which were then posted online without the women’s consent. See United States v. Pratt, et. al. 19-CR-4488. Since then, several of the GDP Operators have been convicted in connection with that criminal prosecution.
According to Aylo’s admissions and/or court documents filed today, between 2017 and 2019, Aylo received money that Aylo knew or should have known was derived from the GDP Operators’ sex trafficking operations. For example, in September 2017, Aylo learned that many of the women appearing in the GDP and GDT videos had filed a civil lawsuit in California against the GDP Operators alleging that the complainants had been tricked and coerced into filming the adult videos and that the videos were posted on Pornhub.com without their consent. Between 2016 and 2019, Aylo also received several content removal requests from complainants seeking to remove GDP videos from its websites. The complainants told Aylo that they had been lied to and defrauded into making these videos and that the videos were posted on Pornhub.com without their consent. Although Aylo sought, and received, information from the GDP Operators that purported to establish that the complainants had given consent for their videos to be posted online, Aylo did not independently verify consent and did not remove all the videos that were requested to be taken down. Moreover, in August 2019, Aylo learned that a GDP videographer had testified during the civil trial that he falsely told women that their sex videos would not appear online so that they would agree to appear in the videos, and that such videos were posted on Pornhub.com. Despite the above, Aylo continued to host the GDP and GDT channels on its websites and accept money from its partnership with the GDP Operators.
On or about October 14, 2019, Aylo finally removed the official GDP channel from its platforms. However, the company did not take steps to identify for removal all unofficial GDP content from its website at that time. Aylo also did not remove the official GDT channel from its platforms until December 2020 even though the company knew that the individuals operating GDT were the same as those who operated GDP and that many of the individuals featured in the GDP videos were also featured in the GDT videos.
The Deferred Prosecution Agreement
Under the terms of the deferred prosecution agreement, Aylo has agreed to pay $1,844,952.83 to the United States. Aylo has also agreed to provide monetary payments to victims of the GDP Operators who have not otherwise already received compensation, and whose images were posted on Aylo’s platforms.
Aylo has agreed to be subject to an independent Monitor for a period of three years. The Monitor will be tasked with assessing the company’s compliance with the terms of the DPA. The Monitor will also evaluate the strength and thoroughness of Aylo’s due diligence protocols for its content partners and content programs; the robustness of the company’s content screening and monitoring processes; the adequateness of the staffing and resources dedicated by Aylo to address, mitigate and remediate takedown requests or allegations of the presence of illegal content on the company’s platforms; and the adequacy of the company’s disclosures to relevant law enforcement authorities regarding the presence of illegal content on the company’s platforms. Aylo has agreed to cooperate fully with the Monitor, and to adopt and implement recommendations made by the Monitor, subject to the terms of the DPA.
The Office reached this resolution with Aylo based on several factors, including the nature and seriousness of the offense; the fact Aylo did not voluntarily self-disclose its criminal conduct to the Office but thereafter cooperated with the Office’s investigation; its removal of GDP and GDT content from its platforms; the nature of remedial measures Aylo has instituted across its platforms since 2020; and Aylo’s commitment to remediating and improving its compliance program and internal controls, including its agreement to a three-year monitorship. In reaching this resolution, the Office also considered the wide-ranging impact the monitorship will have on Aylo and, possibly more broadly, other adult website operators and internet safety generally.
In the event Aylo breaches the terms of the DPA, the company has agreed to be prosecuted for engaging in an unlawful monetary transaction, in violation of Title 18, United States Code, Section 1957.
The investigation was conducted by the FBI’s New York Field Office. The government’s case is being handled by the Office’s Business and Securities Fraud 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 Hiral Mehta, Gillian Kassner, Genny Ngai and Tara McGrath are in charge of the prosecution.
The Defendant:
AYLO HOLDINGS S.A.R.L.
E.D.N.Y. Docket No. 23-CR-463 (BMC)
Felon Pleads Guilty to Possessing Ammunition Used in Shooting in BrooklynRead the Press Release
Today in federal court in Brooklyn, Leo Oliver pleaded guilty to being a felon in possession of ammunition in connection with a non-fatal shooting of a man in East New York, Brooklyn. Today’s proceeding was held before United States District Judge Dora L. Irizarry. When sentenced, Oliver faces up to 10 years in prison.
Breon Peace, United States Attorney for the Eastern District of New York, Erin Keegan, Acting Special Agent-in-Charge, Department of Homeland Security, Homeland Security Investigations, New York (HSI), and Edward A. Caban, Commissioner, New York City Police Department (NYPD) announced the guilty plea.
“With today’s plea, the community can begin to heal from the callous violence the defendant brazenly inflicted in public places,” stated United States Attorney Peace. “My Office is deeply committed to holding repeat offenders who engage in gun violence, like the defendant, fully accountable for their actions.”
“For years, Leo Oliver caused immense harm to the Brooklyn community through his reckless acts of violence and justice has finally caught up with him. I commend the efforts of HSI New York's Violent Gang Task Force for successfully identifying Oliver, a repeat offender whose rap sheet boasted seven prior felonies, as the perpetrator in multiple shootings in East New York over a two-year period,” said HSI New York Acting Special Agent in Charge Erin Keegan. “I would like to thank the NYPD and the Eastern District of New York for their collaborative efforts to reduce gun-related violence, and their commitment toward the safety of our great city.”
“While crime never rests, neither does the commitment of the men and women of the NYPD,” stated NYPD Commissioner Caban. “I commend our investigators for their dedication to this important case. And, in the ongoing effort to end the horrors of gun violence, we and our partners at HSI and the office of the U.S. Attorney for the Eastern District of New York will remain tireless in identifying, investigating, and holding fully accountable anyone responsible for driving crime and disorder in our city.”
According to court filings, the indictment, and facts presented during the plea proceeding, Oliver committed two shootings in East New York, Brooklyn in 2020 and 2021.
On the evening of July 8, 2020, the defendant shot his first victim (Victim-1) at a bodega. Victim-1 was working behind the counter when, after a dispute, Oliver brandished a black firearm from his pocket, and shot Victim-1 in the chest and hand, before fleeing in an SUV. A .380 shell casing was recovered from the scene. Victim-1 was hospitalized but survived.
Oliver committed a second shooting on September 25, 2021 following an argument with Victim-2 on the sidewalk on Van Siclen Avenue in Brooklyn. As Victim-2 and Oliver were in a verbal dispute, Oliver shot Victim-2 in his torso, before fleeing on foot. Victim-2 was hospitalized but survived. Two .380 shell casing were recovered at the scene.
As described in court filings, after the shootings the defendant took steps to destroy evidence and conceal his crimes. He deleted firearms evidence from his cell phone, and threw the firearm used in the 2020 shooting into a river.
The defendant has at least ten other prior convictions, including at least seven felony convictions.
Assistant United States Attorney Adam Amir is in charge of the prosecution.
The Defendant:
LEO OLIVER (also known as “Gam”)
Age: 43
Mechanicsburg, PennsylvaniaE.D.N.Y. Docket No. 23-CR-279 (DLI)
New York and Delaware Companies are Enjoined from Manufacturing and Distributing Adulterated and Misbranded Dietary SupplementsRead the Press Release
Breon Peace, United States Attorney for the Eastern District of New York, Brian M. Boynton, Principal Deputy Assistant Attorney General of the Justice Department’s Civil Division, and Michael C. Rogers, MS, Acting Associate Commissioner, of the U.S. Food and Drug Administration (FDA)’s Regulatory Affairs announced today that two New York companies, a Delaware company, and the companies’ owner have been enjoined from distributing and manufacturing adulterated and misbranded dietary supplements in violation of the Federal Food, Drug, and Cosmetic Act (FDCA).
“Consumers trust that dietary supplements they purchase are unadulterated. My Office is working diligently with our partners at the Justice Department’s Consumer Protection Branch and the FDA to ensure that these products are what they purport to be and safe. When they are not, we will take all appropriate action to protect consumers.” stated United States Attorney Peace.
“Dietary supplement manufacturers and distributors have an important responsibility to ensure product quality and safety,” stated Principal Deputy Assistant Attorney General Boynton. “The Justice Department will continue to work closely with the FDA and take action against manufacturers and distributors who fail to abide by laws designed to protect public health.”
“It is imperative that dietary supplement manufacturers comply with the FDA’s regulatory requirements to help ensure product safety and protect consumers,” said Acting Associate Commissioner Michael C. Rogers, MS, for FDA’s Regulatory Affairs. “When evidence of non-compliance is identified, the agency holds dietary supplement manufacturers responsible. The FDA is dedicated to exercising its full authority under the law to take action against adulterated dietary supplements, as part of our ongoing commitment to protect the health of U.S. consumers.”
A civil complaint filed on October 18, 2023 at the request of the U.S. Food and Drug Administration (FDA), alleged that Total Body Nutrition LLC, TBN Labs LLC, and Loud Muscle Science, LLC (collectively, “TBN companies”), and the companies’ owner, Mohammed Islam, violated the FDCA at the companies’ facility in Hauppauge, Long Island, and their previous facility in Edgewood, New York, by manufacturing and distributing adulterated and misbranded dietary supplements. The complaint alleges that Islam and the TBN companies violated the FDCA by manufacturing dietary supplements without establishing product specifications for the finished batches and without testing or examining the finished batches to verify that they met product specifications, and by using dietary ingredients in their dietary supplements without first testing or examining the ingredients to verify their identity. The complaint also alleged that FDA inspected the TBN companies’ current and previous facilities four times, in 2017, 2018, 2021, and 2023, and found violations of the FDCA at each inspection. According to the complaint, FDA also issued Islam and the TBN companies warning letters in 2016, 2017, and 2019.
Islam and the TBN companies agreed to settle the suit and be bound by a consent decree of permanent injunction. The negotiated consent decree entered by the court enjoins Islam and the TBN companies from violating the FDCA, and requires, among other things, that Islam and the TBN companies comply with the dietary supplement current good manufacturing practice regulations and the dietary supplement labeling provisions of the FDCA and its implementing regulations. Further, Islam and the TBN companies must destroy all of their adulterated dietary supplements.
Assistant United States Attorney Michael Blume of the Eastern District of New York and Trial Attorney Kimberly R. Stephens of the Justice Department’s Consumer Protection Branch are handling the case with assistance from Associate Chief Counsel Roselle Oberstein of the FDA’s Office of the Chief Counsel.
In March 2022, Mr. Peace announced the creation of a Consumer Protection Team in the Office’s Civil Division. The Consumer Protection Team has focused on protecting the health, safety, economic security, and dignity of individuals in the Eastern District of New York and nationwide, including our most vulnerable residents.
The claims resolved by the consent decree announced today are allegations only, and there has been no determination of liability.
E.D.N.Y. Docket No.: 23-CV-9073
United Kingdom Citizen Extradited to Face Charges in $99 Million Wine FraudRead the Press Release
Stephen Burton, a citizen of the United Kingdom, will be arraigned in federal court in Brooklyn this morning before United States Magistrate Judge Taryn A. Merkl on an indictment charging him with wire fraud conspiracy, wire fraud and money laundering conspiracy in connection with a scheme perpetrated through Bordeaux Cellars, a company that he operated. Burton was extradited yesterday to the Eastern District of New York from Morocco where he was arrested in 2022 after entering the country using a false Zimbabwean passport. Burton’s co-defendant, James Wellesley, remains in extradition proceedings in the United Kingdom.
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 extradition and arraignment.
“With the successful extradition of Burton to the Eastern District of New York, he will now taste justice for the fine wines scheme alleged in the indictment,” stated United States Attorney Peace. “This prosecution sends a message to all perpetrators of global fraud that you can run from law enforcement, but not forever.”
Mr. Peace thanked Moroccan authorities for their assistance. The Justice Department’s Office of International Affairs also provided significant assistance in securing the arrest and extradition from Morocco of the defendant.
The indictment alleges that from at least June 2017 and continuing through February 2019, the investors posed as executives at a company called Bordeaux Cellars. The defendants solicited investors, including residents of the Eastern District of New York, at, among other places, investor conferences held in the United States and overseas. The defendants claimed to investors that Bordeaux Cellars brokered loans between investors and high-net-worth wine collectors that would be fully collateralized by high-value collections of wine. The defendants promised that investors would receive regular interest payments from the borrowers, and that Bordeaux Cellars would keep custody of the wine securing the loans while the loans were outstanding. As alleged, these representations were lies, the “high-net-worth wine collectors” did not actually exist and Bordeaux Cellars did not maintain custody of the wine purportedly securing the loans. Instead, the defendants used incoming loan proceeds to make fraudulent interest payments to investors and for their own personal expenses.
The charges in the indictment are allegations, and the defendants are presumed innocent unless and until proven guilty. If convicted, the defendants each face up to 20 years in prison.
The government’s case is being handled by the Office’s Business and Securities Fraud Section. Assistant United States Attorneys Lauren Elbert and Benjamin Weintraub are in charge of the prosecution.
The Defendants:
STEPHEN BURTON
Age: 58
United KingdomJAMES WELLESLEY
Age: 56
United Kingdom
E.D.N.Y. Docket No. 22-CR-79 (PKC)Creator of International Digital-Asset Exit Schemes Pleads Guilty to Defrauding InvestorsRead the Press Release
Earlier today, Ivars Auzins, a Latvian national, pleaded guilty at the federal courthouse in Brooklyn to conspiring to commit securities fraud in connection with defrauding investors in a series of digital-asset exit scams. Today’s proceeding took place before United States Magistrate Judge Taryn A. Merkl. When sentenced, Auzins faces up to five years in prison. As part of his sentence, Auzins has also agreed to pay $497,006 in forfeiture. Auzins was extradited to the United States from Latvia in August 2022.
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 guilty plea.
The term “digital asset” refers to an asset that is issued and transferred using distributed ledger or blockchain technology. According to court filings and facts presented during the plea proceeding, Auzins and his co-conspirators fraudulently marketed multiple digital-asset offerings to investors worldwide by misrepresenting their products and services, the profits investors would earn and the qualifications of the individuals making the offerings. Auzins and his co-conspirators intentionally failed to deliver on these promises, diverting millions of dollars’ worth of proceeds for their personal benefit while continuing to represent that the benefits would be forthcoming.
The government’s case is being handled by the Office’s Business and Securities Fraud Section. Assistant United States Attorney John O. Enright is in charge of the prosecution with assistance from Paralegal Jordi Martinez. The Justice Department’s Office of International Affairs worked with law enforcement partners in Latvia to secure the arrest and extradition of Auzins to the United States.
The Defendant:
IVARS AUZINS
Age: 31
Riga, LatviaE.D.N.Y. Docket No. 21-CR-357 (ERK)
New York City Police Officer Charged with Sex Offenses Relating to MinorsRead the Press Release
A four-count indictment was unsealed today in federal court in Brooklyn charging Christopher Terranova, a New York City police officer, with attempting to exploit children and coercion and enticement of a minor. In at least one instance, Terranova is alleged to have used his position as a police officer to gain access to a victim who had previously been the victim of a crime. Terranova was arrested this morning and will be arraigned later today before United States Magistrate Judge Marcia M. Henry.
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 arrest and charges.
“The defendant allegedly preyed upon vulnerable youth in the same community he was sworn to protect,” stated United States Attorney Peace. “Protecting minors from those who violate their position of trust will always be a priority of this Office. I urge parents and caregivers to have conversations with their children about the dangers of communicating online with strangers and individuals who seek to exploit them.”
Mr. Peace expressed his appreciation to the New York City Police Department's Internal Affairs Bureau and the Richmond County District Attorney’s Office for its significant cooperation and assistance during the investigation.
“The FBI takes crimes against children seriously—even more so when it involves someone who took an oath to serve and protect, and whom the public holds to a higher standard,” stated FBI Assistant Director-in-Charge Smith. “The damage done by Terranova’s alleged depravity will likely outlast any punishment he ultimately receives. The FBI is dedicated to doing the work to restore public faith in law enforcement when individuals attempt to use the badge to hide their illegal behavior. We thank the U.S. Attorney’s Office for the Eastern District of New York and our law enforcement partners for their efforts in this case.”
As set forth in the indictment and other court documents, Terranova is charged with using social media to engage in sexually explicit conversations with underage boys and attempting to entice those victims into taking sexually explicit photographs of themselves and sharing them with the defendant. Terranova used popular social media applications, such as Snapchat, to message with underage boys whom he encountered socially or through his job as a police officer. After establishing a relationship with the boys, Terranova solicited them for nude photographs. On at least one occasion, in the guise of giving a boy a ride home from a party, Terranova brought the boy to a secluded location where he directed the victim to engage in sex acts with him.
Between March 2023 and May 2023, the defendant targeted a 15-year-old boy (John Doe 3) who was the victim of a robbery. After viewing John Doe 3’s personal information in an NYPD database, Terranova messaged the victim’s personal phone under the pretense of checking on him after the robbery. The defendant wrote, “it’s Chris Terranova the cop you met at the 121 [Precinct] that day with mom, i just wanted to reach out to see if you were doing ok after the incident, I hate seeing these things happen to good Guys like yourself.” Terranova then connected with John Doe 3 via social media and attempted to engage him in conversation about sexual activity and pornography. After sending John Doe 3 a sexually explicit photograph of himself, Terranova messaged the victim: “See it’s nothing[.] Your turn[.]”
Anyone with relevant information is asked to contact the FBI at tips.fbi.gov or 212-384-1000.
The charges in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty. If convicted, Terranova faces a mandatory minimum sentence of 15 years’ imprisonment and a maximum sentence of life imprisonment.
The government’s case is being handled by the Office’s Civil Rights Section. Assistant United States Attorneys Lauren Howard Elbert and Rachel A. Bennek are in charge of the prosecution.
The Defendants:
Christopher Terranova
Age: 33
Staten Island, New YorkE.D.N.Y. Docket No. 21-CR-516 (KAM)
Two Employees of Brooklyn Moving Company Convicted of Defrauding CustomersRead the Press Release
Earlier today, a federal jury in Brooklyn convicted Kristy Mak and Andre Prince of conspiracy to commit wire fraud, the sole count of a superseding indictment, in connection with their participation in a fraudulent moving company scheme. The verdict followed a one-week trial before United States Second Circuit Judge Denny Chin sitting by designation. When sentenced, the defendants each face up to 20 years in prison and forfeiture in the amount to be determined by the Court.
Breon Peace, United States Attorney for the Eastern District of New York, announced the verdict.
“The jury found that these defendants conspired in a despicable scheme to steal from their victims when they were most vulnerable and at the mercy of crooked movers holding their worldly possessions hostage. No person who contracts for moving services should be exploited in this manner,” stated United States Attorney Peace. “Make no mistake, this was not a disagreement over billing, rather the jury found the defendants were part of a cunning and deliberate scheme to defraud customers and were held accountable.”
Mr. Peace expressed his thanks to the Special Agents of the Federal Bureau of Investigation, New York Field Office, and the United States Department of Transportation, Office of the Inspector General for their outstanding investigative work on the case.
As proven at trial, between at least January 2017 and August 2020, the defendants worked for a number of moving companies controlled by Yakov Moroz, which operated under various names including Great Moving USA, Green Movers, New City Moves, Cross Country Moving and Storage, and Movers Consulting. Mak was a customer service representative for the company and supervised Prince who was a member of the sales team. The defendants lured customers to these movers by posting fake reviews online and by having sales associates offer low-cost transportation of their household goods. After a contract was signed and, in some cases, after the customer’s belongings loaded on the truck, the movers would spring new expenses on them. If the customer tried contacting the sales associate about the surprise fees, that person was unreachable, and the customers were faced with the drivers threatening to hold their goods hostage unless they paid additional fees which were sometimes double or triple the original estimated cost. In a Slack message conversation with an uncharged co-conspirator about revising orders to squeeze more money from customers, Mak stated they will “f*ck [customers] onsite.” In another Slack conversation, Prince reacted to two memes sent to him from another sales person depicting their scheme to cut off contact with the customer on the day of the move, stating: “[rolling on the floor laughing emoji] that is so accurate”].
Moroz, the president of Great Movers Inc. and its successor company, New City Movers, absconded earlier this year while on pre-trial release and is currently a fugitive. As a result of the fraudulent scheme, the defendants, together with others, wrongfully obtained more than $3 million from over 800 victims.
The government’s case is being handled by the Office’s General Crimes Section. Assistant United States Attorneys Arun Bodapati and Elias Laris are in charge of the prosecution with the assistance of Paralegal Specialist Stephanie Heyward.
The Defendants:
KRISTY MAK
Age: 34
Plantation, FloridaANDRE PRINCE (also known as “Allen Parks” and “Aaron”)
Age: 45
Taramac, FloridaE.D.N.Y. Docket No. 20-CR-342 (DC)
Two Defendants Convicted of Extortionate Collection of Credit in which Victim was Punched in FaceRead the Press Release
Today, a federal jury in Brooklyn convicted Anthony Romanello, also known as “Rom,” of extortionate collection of credit and conspiracy to commit the same in connection with a gambling debt, and convicted Joseph Celso of conspiracy to commit extortionate collection of credit. The verdict followed a one-week trial before United States District Judge Eric R. Komitee. When sentenced, Romanello faces up to 40 years in prison and Celso faces up to 20 years in prison.
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 verdict.
“Today’s verdict upholds the rule of law and demonstrates the defendants’ violent and brazen conduct will not be tolerated,” stated United States Attorney Peace. “I commend the jury for holding the defendants accountable for their crimes.”
As proven at trial, from March 2017 to June 2017, Romanello, Celso, and co-defendant Luan Bexheti conspired to use extortionate means to collect an unpaid gambling debt owed by John Doe #2 and a family member. Romanello and Celso used threats and violence in repeated attempts to collect the debt from John Doe #1, a relative of John Doe #2. Romanello confronted John Doe #1 three separate times to demand money in satisfaction of the debt. On the third time, Romanello and Celso went to John Doe #1’s restaurant in Manhattan to again demand the money. After John Doe #1 stated that he would only pay a portion of the amount Romanello was demanding, Romanello punched John Doe #1 in the face. John Doe #1 reported the assault to the New York City Police Department. The next day, Celso warned John Doe #2, John Doe #1’s brother, that if John Doe #1 did not drop the criminal charge against Romanello, the situation would escalate and “things would get ugly.” After John Doe #2 told John Doe #1 about the warning, John Doe #1 withdrew his complaint with the NYPD.
Luan Bexheti pleaded guilty in October 2023 to extortionate collection of credit conspiracy in connection with the same debt and is awaiting sentencing.
The government’s case is being handled by the Office’s Organized Crime and Gangs Section. Assistant United States Attorneys Dana Rehnquist, Irisa Chen and Rebecca Schuman are in charge of the prosecution with the assistance of Paralegal Specialist Theodore Rader.
The Defendants:
ANTHONY ROMANELLO
Age: 86
Franklin Square, New YorkJOSEPH CELSO
Age: 50
Queens, New YorkAdditional Defendant Who Previously Pleaded Guilty:
LUAN BEXHETI
Age: 51
Queens, New YorkE.D.N.Y. Docket No. 22-CR-194 (EK)
Five Colombian Nationals Arrested for International Cocaine DistributionRead the Press Release
Today, Alexander Valencia Garcia will be arraigned before United States Magistrate Judge Marcia M. Henry at the federal courthouse in Brooklyn on an indictment charging him with two counts of international cocaine distribution. On November 7, 2023, the defendant, a Colombian citizen, was arrested in Florida on an arrest warrant issued from the Eastern District of New York. On the same day, his co-defendants—Cesar Valencia Garcia, Diego Beltran Alvarez, Oscar Valencia Florez, and Jhonatan Samboni Ruiz—were all arrested in Colombia, and their extradition is pending.
Breon Peace, United States Attorney for the Eastern District of New York, Frank A. Tarentino, III, Special Agent-in-Charge, Drug Enforcement Administration, New York Division (DEA), Edward A. Caban, Commissioner, New York City Police Department (NYPD), and Dominick L. Chiumento, Acting Superintendent, New York State Police (NYSP), announced the arrests and arraignment.
“As alleged, these five co-defendants were members of an international drug trafficking organization that produced and exported hundreds of kilos of cocaine from Colombia to the United States,” stated United States Attorney Peace. “We will not relent in our efforts to bring to justice those who are responsible for trafficking dangerous drugs into our communities whether here or in a foreign country.”
Mr. Peace extended his appreciation to the DEA’s office in Bogota, Colombia, the United States Marshals Service, the United States Department of State, the Department of Justice’s Office of International Affairs, Narcotic and Dangerous Drug Section’s Judicial Attaché’s Office in Colombia, the Colombian National Police, and the Government of Colombia.
“Alexander Valencia Garcia has been brought to justice for his alleged role in a multi-million dollar cocaine trafficking conspiracy spanning from Colombia to New York. DEA and our law enforcement partners do not rest and continue to pursue those responsible for bringing illegal drugs into the United States. I commend the DEA New York Drug Enforcement Task Force and the United States Attorney’s Office Eastern District of New York for their tireless efforts in this investigation,” stated DEA Special Agent-in-Charge Tarentino.
“Our job is to identify, investigate, and arrest anyone responsible for distributing illegal drugs throughout New York City, wherever they are based,” stated NYPD Commissioner Caban. “I thank and commend the dedicated NYPD investigators who partner every day with our federal task force colleagues for extending their efforts beyond our borders to stop this poison from reaching our streets.”
NYSP Chiumento said, “The coordination and investigative persistence of all partners responsible for this indictment, sends a strong message that we will not tolerate dangerous drugs coming into our country or state. We will continue to work vigilantly to put dangerous individuals like Mr. Garcia behind bars. I want to thank our members and law enforcement partners for their tenacious dedication to tracking illegal drugs and intercepting them at their source before they infiltrate our communities."
According to the indictment, court filings, and statements made in Court, the defendant and his co-defendants were members of a sophisticated drug trafficking organization that operated in southwestern Colombia. The organization produced and transported thousands of kilograms of cocaine to locations along the coast of Colombia so that the cocaine could eventually be exported and smuggled into the United States. Valencia Garcia specifically helped oversee production in labs as well as transportation of finished cocaine. As part of the investigation, law enforcement authorities seized over 500 kilograms of cocaine attributable to the defendant’s drug trafficking enterprise.
The arrests of Alexander Valencia Garcia and his co-defendants are the result of an ongoing Organized Crime Drug Enforcement Task Forces (OCDETF) investigation led by the United States Attorney’s Office for the Eastern District of New York and the DEA. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking, weapons trafficking, and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply. OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
The charges in the indictment allegations, and the defendants are presumed innocent unless and until proven guilty. If convicted, the defendants face up to life in prison.
The government’s case is being handled by the Office’s International Narcotics and Money Laundering Section. Assistant United States Attorney Andrew D. Wang is in charge of the prosecution.
The Defendants:
ALEXANDER VALENCIA GARCIA
Age: 57
ColombiaCESAR VALENCIA GARCIA
Age: 55
ColombiaDIEGO BELTRAN ALVAREZ
Age: 32
ColombiaOSCAR VALENCIA FLOREZ
Age: 24
ColombiaJHONATAN SAMBONI RUIZ
Age: 34
ColombiaE.D.N.Y. Docket No. 22-CR-513 (PKC)
Owners of Brooklyn Plumbing Company Indicted for Evading Taxes on More Than $10 Million in IncomeRead the Press Release
An indictment was unsealed earlier today in federal court in Brooklyn charging Alexander Figliolia, Jr., and Kenneth Sutherland, the owners of Liberty Water & Sewer (Liberty Water), a Brooklyn-based plumbing company which they operate as a partnership, with tax evasion and conspiracy to defraud the United States. Figliolia, Jr., and Sutherland were arrested earlier today, and their initial appearances are scheduled for this afternoon before United States Magistrate Judge James R. Cho.
Breon Peace, United States Attorney for the Eastern District of New York, Thomas Fattorusso, Special Agent-in-Charge, Internal Revenue Service Criminal Investigation, New York (IRS-CI), James Smith, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Jocelyn E. Strauber, Commissioner, New York City Department of Investigation (DOI), announced the arrests and charges.
“Business owners like everyone else have an obligation to pay their fair share of taxes,” stated United States Attorney Peace. “As alleged, the defendants made millions of dollars repairing water and sewer lines for New York City residents, but instead of dutifully paying the taxes they owed, they improperly classified more than $10 million of personal expenses as business expenses. Their greed drained the government’s coffers of nearly $4 million in tax revenue.”
“Figliolia and Sutherland were living the lavish life while allegedly failing to report more than ten million dollars in income. The yachts, jewelry and family trips were all paid for with money owed to the federal government. Today’s indictment is a message to all those who choose to evade taxes, one day your extravagant lifestyle on the taxpayer dime will come to an end, and you will be prosecuted for your actions,” stated IRS-CI Special Agent-in-Charge Thomas Fattorusso.
“The defendants, as charged, evaded taxes on millions of dollars of income from the business they conducted in New York City, by misclassifying lavish personal expenses as business expenses to reduce their tax burden. I thank our federal law enforcement partners for their commitment to hold corrupt contractors in this City accountable,” stated DOI Commissioner Strauber.
"The alleged greed and abuse of trust here are unconscionable. Pocketing funds to support an extravagant lifestyle is an afront to hardworking taxpayers who depended on these men to do honest work," said James Smith, Assistant Director in Charge of the FBI New York Field Office. “The FBI is committed to working with our law enforcement partners to investigate allegations of significant financial crime and holding the people behind them accountable for their actions.”
As alleged in the indictment and other court filings, between January 2017 and June 2020, the defendants evaded personal income taxes by issuing checks and wiring money from Liberty Water’s bank account to pay for personal expenses. The defendants classified these payments of their personal expenses as business expenses of Liberty Water, thereby reducing Liberty Water’s profits and reducing the defendants’ personal income tax burdens. For example, Figliolia, Jr., and Sutherland classified more than $1.75 million of personal credit card expenses, including home renovations, a family trip to Disney World, jewelry, clothing and veterinary expenses, as business expenses. As another example, Figliolia, Jr., and Sutherland obtained loans of more than $2.8 million on personal life insurance policies, and repaid the loans using Liberty Water funds, allowing them to siphon that money out of the business without paying taxes. As still another example, Figliolia, Jr., issued more than $4 million in checks from Liberty Water’s bank account to a law firm for the payment of personal expenses, including the purchase of multiple properties and a yacht, but classified them as business expenses of Liberty Water.
In total, Figliolia, Jr., and Sutherland intentionally diverted approximately $10,225,213 from Liberty Water between tax years 2017 and 2019, resulting in the evasion of approximately $3,933,046 in federal taxes.
The charges in the indictment are allegations, and the defendants are presumed innocent unless and until proven guilty. If convicted, the defendants each face a maximum sentence of five years’ imprisonment on each count.
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 Philip Pilmar and Dana Rehnquist.
The Defendants:
ALEXANDER FIGLIOLIA, JR.
Age: 50
Staten Island, NYKENNETH SUTHERLAND
Age: 62
Staten Island, NYE.D.N.Y. Docket No. 23-CR-498
Long Island Pastor Charged with Sexual Exploitation of Children, Coercion and Distribution of Child PornographyRead the Press Release
Jose Saez, Jr., a pastor at a church located in Brentwood, will be arraigned this afternoon at the federal courthouse in Central Islip on an indictment charging him with sexual exploitation of children, coercion and enticement of children, distribution of child pornography, and possession of child pornography. Saez was arrested on a complaint on September 28, 2023 and has been detained pending trial. Today’s arraignment will be held before United States Magistrate Judge James M. Wicks.
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 indictment.
“As alleged, despite the trust and respect placed in him by his community and his congregation, the defendant verbally abused children online and attempted to persuade minors to produce sexually explicit photographs and videos of themselves and send them to him via the internet,” stated United States Attorney Peace. “Protecting children from predators and those who sexually exploit them will always be a priority of this Office.”
Mr. Peace thanked the Suffolk County Police Department for their assistance with the case.
“When you go to church you expect to be safe and protected...but that's not what members of Pastor Jose Saez's congregation got. He allegedly possessed child pornography and sexually abused multiple children. This is unfathomable to the families and caused lasting harm to the children. The men and women of the FBI's Long Island Child Exploitation Task Force work tirelessly to protect our children but bad people are still out there. If anyone has any information on Saez or think they know someone who may be a victim, please call law enforcement,” stated FBI Assistant Director-in-Charge Smith.
As set forth in court filings, while employed as a pastor at a church located in Brentwood, New York, Saez allegedly used an encrypted messaging service to engage in sexually explicit conversations with minors and with a law enforcement officer acting in an undercover capacity (the UC). In August of 2023, Saez had online conversations with the UC. During those conversations, the defendant stated that he had sexually abused an infant, that his “sweet spot” for molesting children was children between the ages of 11 and 15, and that he was able to find his younger victims at “church.” Pursuant to a court-authorized search, FBI agents recovered numerous images and videos of child pornography from the defendant.
Anyone with information about sexual exploitation by the defendant is asked to contact the FBI at tips.fbi.gov or 212-384-1000.
The charges in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty. If convicted, Saez faces a mandatory minimum sentence of 15 years in prison and up to 30 years in prison.
This prosecution is part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and the Department of Justice Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov
The government’s case is being prosecuted by the Office’s Long Island Criminal Division. Assistant United States Attorneys Mark E. Misorek and Adam R. Toporovsky are in charge of the prosecution.
The Defendant:
JOSE SAEZ, JR.
Age: 28
Brentwood, New YorkE.D.N.Y. Docket No.: 23-CR-480 (JMA)
Founder and Majority Owner of Cryptocurrency Exchange Pleads Guilty to Unlicensed Money TransmittingRead the Press Release
Anatoly Legkodymov, a Russian national also known as “Anatolii Legkodymov,” “Gandalf” and “Tolik,” pleaded guilty today in federal court in Brooklyn to operating a money transmitting business that transported and transmitted illicit funds. The charges stem from Legkodymov’s majority ownership of Bitzlato Ltd., a cryptocurrency exchange that served as a primary conduit for dark market purchasers and sellers, as well as a safe haven for ransomware criminals. As part of his plea agreement, Legkodymov agreed to dissolve Bitzlato and to release any claim over approximately $23 million in seized assets of Bitzlato. The proceeding was held before United States District Judge Eric N. Vitaliano.
Breon Peace, United States Attorney for the Eastern District of New York, Lisa O. Monaco, United States Deputy Attorney General, Nicole M. Argentieri, Acting Assistant Attorney General for the Justice Department’s Criminal Division, and James Smith, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the guilty plea.
“Legkodymov’s guilty plea today confirms that he was well aware that Bitzlato, his cryptocurrency exchange, was being used like an open turnstile by criminals eager to take advantage of his lax controls over illicit money transactions,” stated United States Attorney Peace. “The defendant may have thought he was operating from a safe haven overseas for his ‘No Questions Asked’ clearinghouse, but this prosecution and conviction demonstrate otherwise.”
“As alleged, Bitzlato advertised a safe haven for fraudsters, thieves, and other criminals to launder illicit proceeds—but their business model didn’t account for federal law enforcement,” said Deputy Attorney General Lisa O. Monaco. “We are dismantling and disrupting the cryptocrime ecosystem using all tools available—including criminal prosecution. In January, the Department and our partners took down Bitzlato’s infrastructure and seized its cryptocurrency. Today’s conviction of Bitzlato’s founder is the latest product of our efforts.”
“Legkodymov operated a cryptocurrency exchange that was open for business to money launderers and other criminals,” stated Acting Assistant Attorney General Argentieri. “He profited from catering to criminals, and now he must pay the price. Transacting in cryptocurrency does not put you beyond the reach of the law. Legkdoymov’s plea demonstrates the consequences for those who would offer a safe haven for criminals and their ill-gotten gains.”
As alleged in public filings, Legkodymov is a senior executive and the majority shareholder of Bitzlato Ltd. (Bitzlato), a Hong Kong-registered cryptocurrency exchange that operated globally. Bitzlato marketed itself as requiring minimal identification from its users, specifying that “neither selfies nor passports [are] required.” On occasions when Bitzlato did direct users to submit identifying information, it repeatedly allowed them to openly provide information belonging to “straw man” registrants.
As a result of these deficient know-your-customer (KYC) procedures, Bitzlato became a haven for criminal proceeds and funds intended for use in criminal activity. Bitzlato’s largest counterparty in cryptocurrency transactions was Hydra Market, an online marketplace for narcotics, stolen financial information, fraudulent identification documents, and money laundering services that was the largest and longest running darknet market in the world. Hydra Market users exchanged more than 700 million dollars’ worth of cryptocurrency with Bitzlato, either directly or through intermediaries, until Hydra Market was shut down because of seizures made by U.S. and German law enforcement in April 2022. Bitzlato also received millions of dollars’ worth of ransomware proceeds. The defendant was repeatedly advised that cryptocurrency routed through Bitzlato represented the proceeds of crime and/or was intended for use in illicit transactions.
The investigation was jointly prosecuted by the United States Attorney’s Office for the Eastern District of New York and the National Cryptocurrency Enforcement Team (NCET), which was established to combat the growing illicit use of cryptocurrencies and digital assets. Within the Criminal Division’s Computer Crime and Intellectual Property Section, the NCET conducts and supports investigations into individuals and entities that are enabling the use of digital assets to commit and facilitate a variety of crimes, with a particular focus on virtual currency exchanges, mixing and tumbling services, and infrastructure providers. The NCET also works to set strategic priorities regarding digital asset technologies, identify areas for increased investigative and prosecutorial focus, and lead the Department’s efforts to collaborate with domestic and foreign government agencies as well as the private sector to aggressively investigate and prosecute crimes involving cryptocurrency and digital assets.
The Justice Department’s Office of International Affairs and the FBI’s Legal Attaché in France provided critical assistance in the case, with support from the department’s Cyber Operations International Liaison. The department also thanks the Cyber Division of the Paris Prosecution Office and to France’s Gendarmerie Nationale Cyberspace Command (Cyber Crime Investigation Unit/ C3N).
The government’s case is being prosecuted by CCIPS/NCET Trial Attorney and EDNY Assistant U.S. Attorney Alexander Mindlin, CCIPS/NCET Trial Attorney Sarah Wolfe, and EDNY Assistant U.S. Attorney Artie McConnell are prosecuting the case, with substantial assistance from former NCET Trial Attorneys Scott Meisler and Matthew Blackwood.
The Defendant:
ANATOLY LEGKODYMOV (also known as “Gandalf” and “Tolik”)
Age: 41
Shenzhen, People’s Republic of ChinaE.D.N.Y. Docket No. 23-CR-496 (ENV)
Founder and Majority Owner of Cryptocurrency Exchange Pleads Guilty to Unlicensed Money TransmittingRead the Press Release
The founder and majority owner of Bitzlato Ltd. (Bitzlato), a cryptocurrency exchange that served as a primary conduit for dark market purchasers and sellers, as well as a safe haven for illicit transactions by ransomware criminals, pleaded guilty today to operating a money transmitting business that transmitted illicit funds.
In connection with his plea agreement, Anatoly Legkodymov, aka Anatolii Legkodymov, Gandalf, and Tolik, 41, who is a Russian national and resided in Shenzen, People’s Republic of China, agreed to dissolve Bitzlato and to release any claim over approximately $23 million in seized assets of Bitzlato.
“As alleged, Bitzlato advertised a safe haven for fraudsters, thieves, and other criminals to launder illicit proceeds — but their business model didn’t account for federal law enforcement,” said Deputy Attorney General Lisa O. Monaco. “We are dismantling and disrupting the cryptocrime ecosystem using all tools available — including criminal prosecution. In January, the Department and our partners took down Bitzlato’s infrastructure and seized its cryptocurrency. Today’s conviction of Bitzlato’s founder is the latest product of our efforts.”
“Legkodymov operated a cryptocurrency exchange that was open for business to money launderers and other criminals,” said Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division. “He profited from catering to criminals, and now he must pay the price. Transacting in cryptocurrency does not put you beyond the reach of the law. Legkdoymov’s plea demonstrates the consequences for those who would offer a safe haven for criminals and their ill-gotten gains.”
According to court documents, Bitzlato, a Hong Kong-registered cryptocurrency exchange that operated globally, marketed itself as requiring minimal identification from its users, specifying that “neither selfies nor passports [are] required.” On occasions when Bitzlato did direct users to submit identifying information, it repeatedly allowed them to openly provide information belonging to “straw man” registrants. As a result of these deficient know-your-customer (KYC) procedures, Bitzlato allegedly became a haven for criminal proceeds and funds intended for use in criminal activity.
“Legkodymov’s guilty plea today confirms that he was well aware that Bitzlato, his cryptocurrency exchange, was being used like an open turnstile by criminals eager to take advantage of his lax controls over illicit money transactions,” said U.S. Attorney Breon Peace for the Eastern District of New York. “The defendant may have thought he was operating from a safe haven overseas for his ‘No Questions Asked’ clearinghouse, but this prosecution and conviction demonstrate otherwise.”
Bitzlato’s largest counterparty in cryptocurrency transactions was Hydra Market, an online marketplace for narcotics, stolen financial information, fraudulent identification documents, and money laundering services that was the largest and longest-running darknet market in the world. Hydra Market users exchanged more than $700 million worth of cryptocurrency with Bitzlato, either directly or through intermediaries, until Hydra Market was shut down because of seizures made by U.S. and German law enforcement in April 2022. Bitzlato also received millions of dollars’ worth of ransomware proceeds. Legkodymov was repeatedly advised that cryptocurrency routed through Bitzlato represented the proceeds of crime and/or was intended for use in illicit transactions.
Legkodymov faces a maximum penalty of five years in prison. A sentencing date has not yet been set. A federal judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI is investigating the case.
The investigation was jointly prosecuted by the U.S. Attorney’s Office for the Eastern District of New York (EDNY) and the Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS) and National Cryptocurrency Enforcement Team (NCET), which was established to combat the growing illicit use of cryptocurrencies and digital assets. NCET conducts and supports investigations into individuals and entities that are enabling the use of digital assets to commit and facilitate a variety of crimes, with a particular focus on virtual currency exchanges, mixing and tumbling services, and infrastructure providers. The NCET also works to set strategic priorities regarding digital asset technologies, identify areas for increased investigative and prosecutorial focus, and lead the Department’s efforts to collaborate with domestic and foreign government agencies as well as the private sector to aggressively investigate and prosecute crimes involving cryptocurrency and digital assets.
CCIPS/NCET Trial Attorney and EDNY Assistant U.S. Attorney Alexander Mindlin, CCIPS/NCET Trial Attorney Sarah Wolfe, and EDNY Assistant U.S. Attorney Artie McConnell are prosecuting the case, with substantial assistance from former NCET Trial Attorneys Scott Meisler and Matthew Blackwood.
The Justice Department’s Office of International Affairs and the FBI’s Legal Attaché in France provided critical assistance in the case, with support from the Department’s Cyber Operations International Liaison. The Department also thanks the Cyber Division of the Paris Prosecution Office and France’s Gendarmerie Nationale Cyberspace Command (Cyber Crime Investigation Unit / C3N).
Founder and Executive of Prior2IPO Indicted in Investment FraudRead the Press Release
A three-count indictment was unsealed this morning in federal court in Brooklyn charging Raymond John Pirrello, Jr., also known as “Ray John,” with securities fraud conspiracy, wire fraud conspiracy and securities fraud relating to a scheme to defraud investors and prospective investors in securities offered by Late Stage Management, LLC through several sales offices, including Prior2IPO which he controlled. Pirrello allegedly made material misrepresentations and omissions relating to, among other things, the existence and amount of fees paid by investors in stock offered by Late Stage. Late Stage offered investors “no fee” opportunities to invest in “Pre IPO” stocks, i.e., shares of stock in companies that anticipated an initial public offering (“IPO”) in the near term. Pirrello was arrested this morning and will be arraigned this afternoon before United States Magistrate Judge James M. Cho.
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 charges.
“As alleged, the defendant lied to investors by claiming that the investments made through Late Stage carried no fees and that their full investment would be used to purchase stock, when in reality he was paying himself significant fees on each investment,” stated United States Attorney Peace. “This Office will vigorously prosecute those who think it is business as usual to abuse the trust of their clients and profit through fraud.”
Mr. Peace expressed his appreciation to the Securities and Exchange Commission, New York Regional Office, for their significant cooperation and assistance during the investigation.
"Lying and making material misrepresentations to investors is not just dishonest and bad business, but also a crime. Raymond Pirrello is alleged to have done just that when he advertised no-fee opportunities. In reality there were significant up-front fees from which he personally benefited. The FBI is committed to holding accountable those who seek to profit from lies,” stated FBI Assistant Director-in-Charge Smith.
As set forth in the indictment and other court documents, Late Stage was a New Jersey based manager of investment funds that bought and sold stock issued by privately held companies that anticipated an IPO. Late Stage worked with several sales offices throughout New Jersey, New York and Florida in order to promote the investments. The salespeople used pitches devised by Pirrello and his co-conspirators which consistently touted that the investments carried no upfront fee, and claimed that the only time Late Stage profited was on exit, when the company made its IPO or sold to a larger company, in which case it would be entitled to a 20% share of the investor’s profits. In reality, Late Stage charged substantial fees in the form of markups of stock ranging from 10 to 50% of the stock’s actual per share price. In total, between approximately March 2019 and July 2022, sales offices working on behalf of Late Stage raised approximately $528 million from investors and diverted approximately $88.6 million in undisclosed upfront markups to Pirrello and his co-conspirators.
The charges in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty. If convicted, Pirrello faces a maximum sentence of 20 years’ imprisonment.
In July 2022, Mr. Peace was selected as the Chairperson of the White Collar Fraud subcommittee for the Attorney General’s Advisory Committee (AGAC). As the leader of the subcommittee, Mr. Peace plays a key role in making recommendations to the AGAC to facilitate the prevention, investigation and prosecution of various financially motivated, non-violent crimes including wire fraud, such as the fraud that Pirrello allegedly committed.
The government’s case is being handled by the Office’s Business & Securities Fraud Section. Assistant United States Attorneys Lauren Howard Elbert and Jessica Weigel are in charge of the prosecution.
If you believe that you or someone you know was victimized by Pirrello, please inform the FBI at the following website: www.fbi.gov/Pirrello or by calling 1-800-CALL-FBI.
The Defendants:
RAYMOND JOHN PIRRELLO, JR.
Age: 47
Sparta, New JerseyE.D.N.Y. Docket No. 23-CR-499
Bosnia and Herzegovina National Indicted for Aiding in Escape of Russian DefendantRead the Press Release
A two-count indictment was unsealed yesterday in federal court in Brooklyn, New York, charging Vladimir Jovancic, a Bosnian national, with obstructing justice and assisting escape for his role in helping Artem Uss flee from Italy to Russia following an Italian court ruling that Uss would be extradited to the United States. Uss had previously been charged in United States v. Orekhov et al. with heading a global scheme to smuggle millions of dollars in sensitive military and dual-use technologies and oil from Venezuela to sanctioned Russian oligarchs and companies. Jovancic was arrested yesterday in the Republic of Croatia and will be arraigned in the Eastern District of New York at a future date.
Breon Peace, United States Attorney for the Eastern District of New York, and Lisa O. Monaco, United States Deputy Attorney General, James Smith, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the charges.
“As alleged, this defendant brazenly helped Artem Uss escape justice on an indictment charging Uss for his actions in fueling Russia’s war in Ukraine, evading sanctions and enabling oligarchs,” stated United States Attorney Peace. “I want to thank our partners in Italy for their valuable assistance and support. We will continue to work together to make sure everyone involved in this flagrant scheme to obstruct justice is held accountable.”
United States Attorney Peace also thanked the U.S. Department of Commerce’s Office of Export Enforcement, New York Field Office, the Justice Department’s Office of International Affairs, Task Force Kleptocapture Milan Prosecutor’s Office (Procura della Repubblica presso il Tribunale di Milano), the Carabinieri, the Ministry of Justice, and Croatian authorities for their assistance.
“The defendant allegedly helped a Kremlin crony jump bail in order to evade justice—but now finds himself captured by the long arm of U.S. law enforcement,” said Deputy Attorney General Lisa Monaco. “This case demonstrates the reach of the Department of Justice and further exposes the criminal networks propping up the Russian regime as it wages its unlawful and unprovoked war in Ukraine.”
“Vladimir Jovancic was arrested yesterday for allegedly orchestrated Artem Uss’s escape from Italy by cutting off his ankle monitor and smuggling him through multiple countries. The action yesterday is a stark reminder – if you interfere with U.S. legal proceedings anywhere around the world, the FBI will find you, we will arrest you, and we will bring you to justice. Artem Uss remains a fugitive, no matter how often he leverages connections with criminal groups in Europe he is only temporarily evading imprisonment; we are confident that today’s reward announcement will aid in bringing an end to Uss’s transient criminality and he will soon find himself back in U.S. custody. The FBI and our international partners will continue to work together to thwart attempts to evade sanctions imposed against Russia’s aggression against Ukraine,” stated FBI Assistant Director-in-Charge Smith.
Artem Uss
As alleged in the indictment and other court filings, Uss is the son of Alexander Uss, the governor of Russia’s Krasnoyarsk Krai region and a close ally of President Vladimir Putin. Uss has ownership interests in several Russian companies in Krasnoyarsk Krai and elsewhere, as well as a senior position with a subsidiary of Rosneft, a sanctioned Russian state-controlled oil conglomerate. Uss also had several significant holdings in Italy, including a luxury hotel in Sardinia, a vineyard and other real estate.
Uss and his business partner, Yury Orekhov, orchestrated a transnational fraud, smuggling and money laundering operation under the umbrella of Nord-Deutsche Industrieanlagenbau GmbH (NDA GmbH), a privately held industrial equipment and commodity trading company located in Hamburg, Germany. Uss and Orekhov each owned fifty percent of NDA GmbH. Using NDA GmbH as a front company, Uss and Orekhov sourced and purchased sensitive military and dual-use technologies from U.S. manufacturers, including advanced semiconductors and microprocessors used in fighter aircraft, missile systems, smart munitions, radar, satellites, and other space-based military applications. These items were shipped to Russian end users, including sanctioned companies that serviced Russia’s defense sector. Some of the types of electronic components obtained through the criminal scheme have been found in Russian weapons platforms seized on the battlefield in Ukraine. Uss and Orekhov also used NDA GmbH as a front to smuggle hundreds of millions of barrels of oil from Venezuela to Russian and Chinese purchasers, including a Russian aluminum company controlled by a sanctioned oligarch and the world’s largest oil refining, gas and petrochemical conglomerate based in Beijing, People’s Republic of China.
Uss’ Escape
Uss was apprehended in Milan, Italy on October 17, 2022, pursuant to a provisional arrest request from the United States. Following his arrest, and over the objection of both Italian and U.S. prosecutors, Uss was released on bail to home detention at his Milan residence with electronic monitoring. On March 21, 2023, the Italian court approved Uss’ extradition to the United States. The next day, on March 22, 2023, Uss escaped from home detention and fled Italy, ultimately arriving in Russia, with the assistance of several individuals, including Vladimir Jovancic.
The investigation into Uss’ escape revealed that, in or about January 2023, Jovancic and other individuals affiliated with a Serbian organized crime group were recruited by Uss to help him flee to Russia in the event extradition was granted. Jovancic met Uss’ wife at a hotel in Milan, Italy, where they planned for Jovancic to deliver groceries to Uss’ residence in Milan as a pretext so that Jovancic’s presence would not raise suspicion if an escape was necessary. Uss’ wife also provided Jovancic with a cell phone and a 10,000 euro deposit for his services. Jovancic was later provided with a keycard to directly access Uss’ residence.
On the day of Uss’ escape, following the Italian court’s decision to extradite Uss to the United States, Jovancic and several other coconspirators went to Uss’ residence. Once there, Jovancic escorted Uss into a car and provided Uss with bolt cutters. Uss used the bolt cutters to remove his electronic ankle monitor and throw the monitoring device out the window. Jovancic and his coconspirators then drove Uss across the border into Slovenia. Over the next several days, Jovancic and his coconspirators shuttled Uss through Slovenia, Croatia and Bosnia and Herzegovina before crossing into Serbia, where Uss paid Jovancic an additional 40,000 euro before boarding a plane to Russia.
If convicted, Jovancic faces a maximum of 20 years’ imprisonment. The charges in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty.
In conjunction with yesterday’s arrest, the State Department announced a reward offer of up to $7 million under the Transnational Organized Crime Rewards Program for information leading to the arrest or conviction of Uss.
The government’s case is being handled by the Office’s National Security and Cybercrime Section. Assistant United States Attorney Artie McConnell is in charge of the prosecution, with assistance from Trial Attorney Scott A. Claffee of the National Security Division’s Counterintelligence and Export Control Section.
The Defendant:
Vladimir JOVANCIC
AGE: 52
Sarajevo, Bosnia and HerzegovinaE.D.N.Y. Docket No. 23-CR-430 (RPK)
Bosnia and Herzegovina National Arrested for Aiding Escape of Russian DefendantRead the Press Release
A two-count indictment was unsealed yesterday in federal court in Brooklyn, New York, charging Vladimir Jovancic, 52, a Bosnia and Herzegovina national who resides in Serbia, with obstructing justice and assisting escape from custody. Jovancic was arrested on Dec. 4 in the Republic of Croatia. In a related operation, Italian authorities separately arrested a second suspect in Italy on Dec. 4.
As alleged, Jovancic is one of several individuals who helped Artem Uss, a defendant in United States. v. Orekhov et al., flee from Italy to Russia following an Italian court ruling that Uss would be extradited to the United States to face charges. Uss is charged with heading a global scheme to smuggle millions of dollars in sensitive military and dual-use technologies and oil from Venezuela to sanctioned Russian oligarchs and companies.
“The defendant allegedly helped a Kremlin crony jump bail in order to evade justice — but now finds himself captured by the long arm of U.S. law enforcement,” said Deputy Attorney General Lisa Monaco. “This case demonstrates the reach of the Department of Justice and further exposes the criminal networks propping up the Russian regime as it wages its unlawful and unprovoked war in Ukraine.”
“As alleged, this defendant brazenly helped Artem Uss escape justice on an indictment charging Uss for his actions in fueling Russia’s war in Ukraine, evading sanctions and enabling oligarchs,” said U.S. Attorney Breon Peace for the Eastern District of New York. “I want to thank our partners in Italy for their valuable assistance and support. We will continue to work together to make sure everyone involved in this flagrant scheme to obstruct justice is held accountable.”
“The defendant’s flagrant disregard for the rule of law has not gone unanswered. This indictment and arrest demonstrate the FBI’s continued focus on holding accountable those who assist criminals attempting to evade U.S. law, regardless of where they may try to hide,” said FBI Deputy Director Paul Abbate. “The FBI, along with our international partners, will continue to aggressively investigate, pursue, and prosecute those who facilitate corrupt practices that place our nation and our institutions at risk.”
“Today’s actions are a warning to anyone who is thinking about unlawfully aiding sanctioned Russian elites and their enablers,” said Co-Director of Task Force KleptoCapture David Lim. “If you break our laws, we will use every available tool and leverage our strong international partnerships to pursue you until you are brought to justice.”
Concurrent with this law enforcement action, the State Department announced a reward offer of up to $7 million under the Transnational Organized Crime Rewards Program (TOCRP) for information leading to the arrest or conviction of Artem Aleksandrovich Uss.
As alleged in the indictment and other court filings, Uss is the son of Alexander Uss, the governor of Russia’s Krasnoyarsk Krai region and a close ally of President Vladimir Putin. Uss has ownership interests in several Russian companies in Krasnoyarsk Krai and elsewhere, as well as a senior position with a subsidiary of Rosneft, a sanctioned Russian state-controlled oil conglomerate. Uss also had several significant holdings in Italy, including a luxury hotel in Sardinia, a vineyard and other real estate.
Uss and his business partner, Yury Orekhov, allegedly orchestrated a transnational fraud, smuggling and money laundering operation under the umbrella of Nord-Deutsche Industrieanlagenbau GmbH (NDA GmbH), a privately-held industrial equipment and commodity trading company located in Hamburg, Germany. Uss and Orekhov each owned 50% of NDA GmbH. Using NDA GmbH as a front company, Uss and Orekhov sourced and purchased sensitive military and dual-use technologies from U.S. manufacturers, including advanced semiconductors and microprocessors used in fighter aircraft, missile systems, smart munitions, radar, satellites and other space-based military applications. These items were shipped to Russian end users, including sanctioned companies that serviced Russia’s defense sector. Some of the types of electronic components obtained through the criminal scheme have been found in Russian weapons platforms seized on the battlefield in Ukraine. Uss and Orekhov also used NDA GmbH as a front to smuggle hundreds of millions of barrels of oil from Venezuela to Russian and Chinese purchasers, including a Russian aluminum company controlled by a sanctioned oligarch and the world’s largest oil refining, gas and petrochemical conglomerate based in Beijing, People’s Republic of China.
Uss was apprehended in Milan, Italy, on Oct. 17, 2022, pursuant to a provisional arrest request from the United States. Following his arrest, and over the objection of both Italian and U.S. prosecutors, Uss was released on bail to home detention at his Milan residence with electronic monitoring. On March 21, the Italian court approved Uss’ extradition to the United States. The next day, Uss escaped from home detention and fled Italy, ultimately arriving in Russia, with the assistance of several individuals, including Vladimir Jovancic.
The investigation into Uss’ escape revealed that, in or about January 2023, Jovancic and other individuals affiliated with a Serbian organized crime group were recruited by Uss to help him flee to Russia in the event extradition was granted. Jovancic met Uss’ wife at a hotel in Milan, Italy, where they planned for Jovancic to deliver groceries to Uss’ residence in Milan as a pretext so that Jovancic’s presence would not raise suspicion if an escape was necessary. Uss’ wife also provided Jovancic with a cell phone and a 10,000-euro deposit for his services. Jovancic was later provided with a keycard to directly access Uss’ residence.
On the day of Uss’ escape, following the Italian court’s decision, Jovancic and several other co-conspirators went to Uss’ residence. Once there, Jovancic escorted Uss into a car and provided Uss with bolt cutters. Uss used the bolt cutters to remove his electronic ankle monitor and throw the monitoring device out the window. Jovancic and his co-conspirators then drove Uss across the border in Slovenia. Over the next several days, Jovancic and his co-conspirators shuttled Uss through Slovenia, Croatia and Bosnia and Herzegovina before crossing into Serbia, where Uss paid Jovancic an additional 40,000 euro before boarding a plane to Russia.
If convicted, Jovancic faces a maximum penalty of 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI and Department of Commerce’s Office of Export Enforcement New York Field Office are investigating the case, with valuable assistance provided by the Justice Department’s Office of International Affairs. The Justice Department thanks the Croatian authorities and the Italian authorities for their critical collaboration, specifically, the Milan Prosecutor’s Office (Procura della Repubblica presso il Tribunale di Milano), the Carabinieri and the Ministry of Justice.
Assistant U.S. Attorney Artie McConnell for the Eastern District of New York is prosecuting the case, with assistance from Trial Attorney Scott A. Claffee of the National Security Division’s Counterintelligence and Export Control Section.
The investigation was coordinated through the Justice Department’s Task Force KleptoCapture, an interagency law enforcement task force dedicated to enforcing the sweeping sanctions, export controls and economic countermeasures that the United States, along with its foreign allies and partners, has imposed in response to Russia’s unprovoked military invasion of Ukraine. Announced by the Attorney General on March 2, 2022, and under the leadership of the Office of the Deputy Attorney General, the task force will continue to leverage all of the department’s tools and authorities to combat efforts to evade or undermine the collective actions taken by the U.S. government in response to Russian military aggression.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Jovancic Indictment Italian release Italian release translation변호사 자격이 박탈된 퀸스 변호사, 고객 사기에 대해 유죄 인정Read the Press Release
오늘 오전 뉴욕 브루클린의 연방법원에서 마이클 리라고도 알려진 현 W. 리(Hyun W. Lee)는 자신의 부동산 고객과 그 거래 상대로부터 변호사 에스크로 계좌에 보관된 자금을 가로챈 사기 행각과 관련한 전신 금융사기 혐의에 대해 유죄를 인정했습니다. 오늘 재판은 파멜라 K. 첸(Pamela K. Chen) 미국 지방법원 판사 앞에서 진행되었습니다. 판결이 확정되면, 이 씨는 최대 20년의 징역형을 선고받게 됩니다. 또한 이 씨는 몰수 금으로 327만 달러를 지불하기로도 합의했습니다.
뉴욕 동부 지역의 브리온 피스 변호가 유죄 인정 사실을 발표했습니다.
"오늘 유죄를 인정함으로써 이 씨는 자신의 변호사 자격이 정지되고 박탈된 후에도 변호사 자격을 유지한 것처럼 한인 사회 구성원을 속이고 그들이 맡긴 수백만 달러를 훔쳤다는 사실을 인정했습니다"라고 미국 변호사 브리온 피스는 말했습니다. "신뢰를 기반으로 하는 지위를 이용해 타인을 속이는 사람들에게 책임을 묻는 동시에 지역사회를 보호하는 것은 이 사무실의 최우선 과제이며 앞으로도 계속될 것입니다."
피스 씨는 이번 수사에 도움을 준 퀸스 카운티 지역 변호사 사무실에 감사의 뜻을 표했습니다.
법원에 제출된 서류와 변론 과정에서 제시된 사실에 따르면, 이 씨는 자신의 에스크로 계좌에 예치된 자금을 풀어줄 것이라는 허위 진술로 고객과 거래 상대가 부동산 구매를 위해 자신에게 자금을 맡기도록 유도했습니다. 그러나 이 씨는 이 자금을 유용하여 카지노에서 도박하거나 자신이 일부 지분을 소유한 식당의 비용을 지불하는 등 자신의 이익을 위해 전용했습니다. 또한 이 씨는 자신이 부동산 매매와 관련하여 고객을 대리하고 부동산 거래와 관련하여 자금을 수령하여 에스크로 계좌에 보관할 수 있는 권한을 가진 변호사라고 허위 진술했습니다. 사실, 이 씨는 뉴욕주 변호사 자격이 정지되었고 이후 변호사 자격이 박탈되었습니다. 그 결과 이 씨는 고객과 제삼자로부터 자금을 받을 자격도 없었습니다.
이 사기를 진행하면서 이 씨는 에스크로 계좌에 보관된 자금 상태에 대해 고객이 그 자금이 안전하다고 믿도록 문서를 조작하여 고객을 오도했습니다. 이 씨가 고객들에게 보여준 서류에는 자신의 에스크로 계좌 잔액이 거의 300만 달러에 달한다고 되어 있었지만, 실제로는 약 2만 5천 달러까지로 고갈된 상태였습니다. 이 씨는 에스크로 계좌에서 자금을 인출해 달라는 고객과 거래 상대의 요청을 이행하지 않았으며, 이 씨가 이미 계좌의 자금을 거의 모두 사용한 상태에서도 남은 자금을 공평하게 분배하는 방법을 모색 중이라고 거짓으로 주장했습니다.
이 씨 또는 위법 행위에 연루된 다른 뉴욕 변호사들의 행위로 인해 손해를 입은 피해자는 변호사 고객 보호 기금에 청구서를 제출하거나 전화 (800) 442-3863 또는 이메일([email protected])로 연락하면 보상 자격이 있을 수 있습니다.
이 사건은 미국 법무부 기업 및 증권 사기 부서의 히랄 메타(Hiral D. Mehta) 부검사와 브라이언 모리스(Brian D. Morris) 검사가 특수 요원 마틴 설리번(Martin Sullivan)과 법률 보조 전문가 페이튼 제퍼슨(Peyton Jefferson)의 도움을 받아 기소 중입니다.
피고:
HYUN W. LEE, 일명 "마이클 리"
나이: 51
클로스터, 뉴저지주 클로스터 거주E.D.N.Y. 적요서 번호 23-CR-465(PKC)
변호사 자격이 박탈된 퀸스 변호사, 고객 사기에 대해 유죄 인정Read the Press Release
오늘 오전 뉴욕 브루클린의 연방법원에서 마이클 리라고도 알려진 현 W. 리(Hyun W. Lee)는 자신의 부동산 고객과 그 거래 상대로부터 변호사 에스크로 계좌에 보관된 자금을 가로챈 사기 행각과 관련한 전신 금융사기 혐의에 대해 유죄를 인정했습니다. 오늘 재판은 파멜라 K. 첸(Pamela K. Chen) 미국 지방법원 판사 앞에서 진행되었습니다. 판결이 확정되면, 이 씨는 최대 20년의 징역형을 선고받게 됩니다. 또한 이 씨는 몰수 금으로 327만 달러를 지불하기로도 합의했습니다.
뉴욕 동부 지역의 브리온 피스 변호가 유죄 인정 사실을 발표했습니다.
"오늘 유죄를 인정함으로써 이 씨는 자신의 변호사 자격이 정지되고 박탈된 후에도 변호사 자격을 유지한 것처럼 한인 사회 구성원을 속이고 그들이 맡긴 수백만 달러를 훔쳤다는 사실을 인정했습니다"라고 미국 변호사 브리온 피스는 말했습니다. "신뢰를 기반으로 하는 지위를 이용해 타인을 속이는 사람들에게 책임을 묻는 동시에 지역사회를 보호하는 것은 이 사무실의 최우선 과제이며 앞으로도 계속될 것입니다."
피스 씨는 이번 수사에 도움을 준 퀸스 카운티 지역 변호사 사무실에 감사의 뜻을 표했습니다.
법원에 제출된 서류와 변론 과정에서 제시된 사실에 따르면, 이 씨는 자신의 에스크로 계좌에 예치된 자금을 풀어줄 것이라는 허위 진술로 고객과 거래 상대가 부동산 구매를 위해 자신에게 자금을 맡기도록 유도했습니다. 그러나 이 씨는 이 자금을 유용하여 카지노에서 도박하거나 자신이 일부 지분을 소유한 식당의 비용을 지불하는 등 자신의 이익을 위해 전용했습니다. 또한 이 씨는 자신이 부동산 매매와 관련하여 고객을 대리하고 부동산 거래와 관련하여 자금을 수령하여 에스크로 계좌에 보관할 수 있는 권한을 가진 변호사라고 허위 진술했습니다. 사실, 이 씨는 뉴욕주 변호사 자격이 정지되었고 이후 변호사 자격이 박탈되었습니다. 그 결과 이 씨는 고객과 제삼자로부터 자금을 받을 자격도 없었습니다.
이 사기를 진행하면서 이 씨는 에스크로 계좌에 보관된 자금 상태에 대해 고객이 그 자금이 안전하다고 믿도록 문서를 조작하여 고객을 오도했습니다. 이 씨가 고객들에게 보여준 서류에는 자신의 에스크로 계좌 잔액이 거의 300만 달러에 달한다고 되어 있었지만, 실제로는 약 2만 5천 달러까지로 고갈된 상태였습니다. 이 씨는 에스크로 계좌에서 자금을 인출해 달라는 고객과 거래 상대의 요청을 이행하지 않았으며, 이 씨가 이미 계좌의 자금을 거의 모두 사용한 상태에서도 남은 자금을 공평하게 분배하는 방법을 모색 중이라고 거짓으로 주장했습니다.
이 씨 또는 위법 행위에 연루된 다른 뉴욕 변호사들의 행위로 인해 손해를 입은 피해자는 변호사 고객 보호 기금에 청구서를 제출하거나 전화 (800) 442-3863 또는 이메일([email protected])로 연락하면 보상 자격이 있을 수 있습니다.
이 사건은 미국 법무부 기업 및 증권 사기 부서의 히랄 메타(Hiral D. Mehta) 부검사와 브라이언 모리스(Brian D. Morris) 검사가 특수 요원 마틴 설리번(Martin Sullivan)과 법률 보조 전문가 페이튼 제퍼슨(Peyton Jefferson)의 도움을 받아 기소 중입니다.
피고:
HYUN W. LEE, 일명 "마이클 리"
나이: 51
클로스터, 뉴저지주 클로스터 거주E.D.N.Y. 적요서 번호 23-CR-465(PKC)
Former LIRR Employee Pleads Guilty to Falsifying Inspection ReportRead the Press Release
Earlier today, Stuart Conklin, a former employee of the Long Island Rail Road (LIRR), pleaded guilty to making a false entry in a report required to be kept by the LIRR under federal laws governing rail road safety and operations. Conklin was charged with the offense in a criminal complaint in March 2021 and subsequently indicted in April 2022. Today’s proceeding was held before United States District Judge Joanna Seybert. When sentenced, the defendant faces up to two years in prison.
Breon Peace, the United States Attorney for the Eastern District of New York; Christopher A. Scharf, Special Agent-in-Charge, United States Department of Transportation; and Daniel G. Cort, Inspector General for the Metropolitan Transportation Authority, announced the guilty plea.
“As dramatically evidenced by the derailment, the rail bond Conklin falsely claimed to have inspected was a critical piece of rail road equipment, essential to ensuring the safety of passengers,” said United States Attorney Peace. “While thankfully no one was seriously hurt in this accident, it is a stark reminder of the importance federal oversight plays in the safety and integrity of our transportation system.”
“Anyone choosing to intentionally ignore Federal laws and requirements put in place to ensure the safety of the traveling public will be pursed to the fullest extent of the law,” stated DOT-OIG Special Agent-in-Charge Christopher A. Scharf. “Today’s guilty plea is the result of an unwavering commitment to safety demonstrated together with our law enforcement and prosecutorial partners.”
“Falsifying inspection reports puts the safety of the public and MTA employees and property at risk.” said MTA Inspector General Daniel G. Cort. “Individuals, like Conklin, who shirk their responsibilities and endanger others should be held accountable and I thank the U.S. Attorney’s Office for the Eastern District of New York for their partnership in doing just that.”
As set forth in the complaint and indictment, Conklin was employed by LIRR as a signalman and his responsibilities included performing regular inspections of rail bonds. Rail bonds are electronic jumpers around joints in the rails of a railroad track to ensure continuity of conductivity for signal currents. On April 26, 2019, Conklin falsely indicated in an inspection report that he had inspected a particular rail bond in Speonk, New York and that the bond had passed inspection. Video footage from a LIRR camera showed that Conklin in fact did not inspect the bond during his shift that day.
Approximately one month later, on May 23, 2019, a westbound LIRR train collided with the rear of an eastbound train in Speonk, New York. The rear of the westbound train did not register in the LIRR signal system as occupying a section of side track, causing the eastbound train to be cleared to pass on the main track when there was not enough space to do so.
A subsequent LIRR investigation determined that the rail bond that Conklin had falsely indicated he had inspected on April 26, 2019, was broken and that the broken rail bond was the cause of the signal malfunction and the derailment.
The government’s case is being prosecuted by the Office’s Public Integrity Section. Assistant United States Attorneys Turner Buford and Sara K. Winik are in charge of the prosecution with assistance from Special Agent Rebecca Sidhu and Paralegal Specialist Melissa Bennett.
The Defendant:
STUART CONKLIN
Age: 66
Magnolia, TXE.D.N.Y. Docket No. 22-CR-171 (JS)
Disbarred Queens Attorney Pleads Guilty to Defrauding His ClientsRead the Press Release
Earlier today, Hyun W. Lee, also known as Michael Lee, pleaded guilty at the federal courthouse in Brooklyn, New York to wire fraud in connection with a scheme to defraud his real estate clients and their counterparties of funds held in his attorney escrow account. Today’s proceeding took place before United States District Judge Pamela K. Chen. When sentenced, Lee faces up to twenty years in prison. Lee has also agreed to pay $3.27 million dollars in forfeiture.
Breon Peace, United States Attorney for the Eastern District of New York, announced the guilty plea.
“With today’s guilty plea, Lee has admitted that he preyed upon members of the Korean-American community by holding himself out as a licensed attorney after his suspension and disbarment, only to steal millions of dollars entrusted to him for safekeeping,” stated United States Attorney Breon Peace. “Protecting the community while holding accountable those who use their positions of trust to defraud others is, and will remain, a priority of this Office.”
Mr. Peace expressed his appreciation to the Queens County District Attorney’s Office for their assistance in this investigation.
According to court filings and facts presented during the plea proceeding, Lee induced clients and counterparties to entrust funds to him for the purchase of real estate based on misrepresentations that Lee would release the funds deposited into his escrow account. Instead, Lee misappropriated these funds and used them for his own benefit, which included gambling at casinos and to pay expenses at a restaurant that he partially owned. Lee also misrepresented that he was an attorney authorized to represent clients, including in connection with the purchase and sale of real estate, and to receive and hold funds in his escrow account in connection with real estate transactions. In reality, Lee had been suspended and was subsequently disbarred from engaging in the practice of law in the State of New York. As a result, Lee was not permitted to accept funds from clients and third parties.
In furtherance of the scheme, Lee misled clients about the status of funds held in his escrow account by fabricating documents leading them to believe their funds were secure. While documentation Lee showed to clients reflected a balance in Lee’s escrow account of nearly $3 million, in reality Lee had depleted the escrow account down to only approximately $25,000. Lee then failed to honor requests by clients and their counterparties to release funds from his escrow account, falsely claiming that he was in the process of working out an equitable way to distribute funds that remained when Lee had already spent virtually all of the funds in the account.
Victims who suffered losses as a result of the conduct of Lee, or other New York lawyers who engage in misconduct, may be eligible to receive compensation by filing a claim with the Lawyer’s Fund for Client Protection, which may be reached at (800) 442-3863 or e-mailing [email protected].
The government’s case is being prosecuted by Assistant United States Attorneys Hiral D. Mehta and Brian D. Morris of the Office’s Business and Securities Fraud Section with assistance from Special Agent Martin Sullivan and Paralegal Specialist Peyton Jefferson.
The Defendant:
HYUN W. LEE, also known as “Michael Lee”
Age: 51
Closter, New JerseyE.D.N.Y. Docket No. 23-CR-465 (PKC)
Principals of Fire Alarm Repair Company Charged with Decade-Long Scheme to Overbill City AgenciesRead the Press Release
An indictment was unsealed today in federal court in Brooklyn charging two defendants, Walter Stanzione and William Neogra, with wire fraud conspiracy for systematically defrauding the City of New York. The defendants are charged with overbilling New York City agencies for more than a decade in connection with contracts to repair and maintain fire alarm systems. Stanzione is scheduled to be arraigned this afternoon before United States Magistrate Judge Cheryl L. Pollak, while Neogra is scheduled to be arraigned before Untied States Magistrate Judge Laura D. Hatcher in the District Court of Delaware.
Breon Peace, United States Attorney for the Eastern District of New York, Jocelyn E. Strauber, Commissioner, New York City Department of Investigation (DOI), James Smith, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI) and Thomas Fattorusso, Special Agent-in-Charge, Internal Revenue Service Criminal Investigation, New York (IRS-CI) announced the charges.
“As alleged in the indictment, the defendants were hired to make sure that the fire alarm systems in hundreds of New York City buildings functioned safely and effectively,” stated United States Attorney Peace. “The defendants took this as an opportunity to steal and defraud, abusing and betraying their obligations. This indictment demonstrates our Office’s commitment to holding accountable government contractors who fleece city agencies and taxpayers.”
DOI Commissioner Jocelyn E. Strauber said, “These defendants, as charged, overbilled City agencies for more than a decade, including the Department of Citywide Administrative Services, the Department of Education, the Department of Environmental Protection, and the Department of Sanitation, by submitting fraudulent invoices reflecting inflated prices. I thank our federal law enforcement partners for their commitment to protect the City’s resources and to hold accountable vendors who use their City contracts to engage in fraud.”
“Doing business with the city is a privilege Neogra and Stanzione allegedly abused for over a decade. Their alleged crimes milked the city of valuable resources. They got used to getting paid more for less, but today it caught up to them,” stated FBI Assistant Director-in-Charge Smith.
“The defendants in this case took money out of the pockets of hard-working New Yorkers by allegedly overbilling the city with fake invoices and inflated prices. This fraud affects all those taxpayers who trusted that the City was paying for services rendered. The defendants are now being held responsible for their criminal acts and will face justice for their decades-long scheme.” said Thomas M. Fattorusso, Special Agent in Charge of IRS-CI New York.
As alleged in the indictment, the defendants exercised control over Fire Alarm Electrical Corp., a company that held numerous contracts with New York City agencies to repair and maintain fire alarm systems. For more than a decade, Fire Alarm Electrical Corp. overbilled those agencies by submitting fraudulent invoices with dramatically inflated prices, including invoices that purported to be from legitimate retailers, which the defendants had altered and modified, as well as invoices from shell companies that the defendants owned and controlled.
The charge in the indictment is an allegation, and the defendants are presumed innocent unless and until proven guilty. The defendants face maximum sentences of 20 years’ imprisonment.
The government’s case is being handled by the Office’s Public Integrity Section. Assistant United States Attorneys Erik Paulsen and Michael Gibaldi are in charge of the prosecution.
The Defendants:
WALTER STANZIONE
Age: 65
East Meadow, New YorkWILLIAM NEOGRA
Age: 63
Millsboro, DelawareE.D.N.Y. Docket No. 23-CR-482
Queens Pharmacist Sentenced to 60 Months in Prison for Illegally Distributing Oxycodone and Filing False Tax ReturnsRead the Press Release
Today, Daniel E. Russo was sentenced to 60 months in prison by United States District Judge Dora L. Irizarry for conspiracy to distribute and possess with intent to distribute oxycodone, distribution and possession of oxycodone, and nine counts of filing false personal and corporate tax returns. In addition to the terms of imprisonment, Judge Irizarry ordered Russo to serve three years of supervised release. Immediately prior to the sentencing, the defendant paid over $400,000 in restitution. Russo pleaded guilty in February 2023.
Breon Peace, United States Attorney for the Eastern District of New York, David A. Hubbert, Deputy Assistant Attorney General of the Justice Department’s Tax Division, Frank A. Tarentino, III, Special Agent-in-Charge, Drug Enforcement Administration, New York Division (DEA), and Thomas Fattorusso, Special Agent-in-Charge, Internal Revenue Service Criminal Investigation, New York (IRS-CI), announced the charges.
“From pharmacist to pill pusher, Daniel Russo betrayed his years of medical training to pocket dirty money in return for illegally selling enormous amounts of oxycodone, which was invariably later sold on the streets,” stated United States Attorney Peace. “Today’s sentence sends a message to all would-be drug dealers, especially healthcare professionals, that the illegal distribution of drugs will be punished.”
DEA Special Agent in Charge Frank Tarentino said, “Through today’s sentencing and prior plea, it is apparent that Daniel Russo will spend the next five years contemplating his ill-fated decision to use his business to illegally distribute prescription medication while enabling opioid addiction throughout New York. The investigation and prosecution meticulously brought to justice Russo’s tax fraud and his role in a major drug trafficking conspiracy. I commend our partners in the DEA’s Long Island Division Office Tactical Diversion Squad, the IRS-CI New York, and the US Attorney’s Office Eastern District of New York for their diligent work.”
“Russo distributed highly addictive drugs to the community he served, completely disregarding his sworn code of ethics as a pharmacist. And while using his position to commit criminal acts, he then failed to report and pay taxes on the proceeds of his illicit sales. It is with strong law enforcement partnerships that we were able to ensure Russo is now facing justice for his actions,” stated IRS-CI Special Agent-in-Charge Fattorusso.
As set forth in the indictment, court filings and during court proceedings, Russo owned and operated Russo’s Pharmacy in Far Rockaway, Queens. Between March 2011 and June 2014, Russo conspired with others, including medical professionals and employees, to fill fraudulent prescriptions for oxycodone and dispense thousands of oxycodone pills in return for hundreds of thousands of dollars in cash. Over the course of the conspiracy, Russo’s co-conspirators delivered hundreds of fraudulent oxycodone prescriptions to Russo’s Pharmacy and would then retrieve the filled prescriptions—written out in various patients’ names—so that they could be dispensed elsewhere. Oxycodone illegally distributed by Russo led to at least one non-fatal overdose. Russo accepted payment mostly in cash for the prescriptions. Russo then hid the proceeds from the scheme and filed false corporate income tax returns for his pharmacy for the years 2013 through 2016, omitting the illegal proceeds. Russo also filed false individual income tax returns for the years 2012 through 2016. In total, Russo failed to report over $1 million in earnings, much of it generated from his oxycodone distribution scheme. As a result, Russo fraudulently underreported his tax obligations on those earnings by over $400,000.
More than a dozen physicians for whom Russo filled prescriptions have since been convicted of crimes related to the distribution of oxycodone.
The government’s investigation was led by the DEA’s Long Island Tactical Diversion Squad, comprising agents and officers of the DEA, Nassau County Police Department, Suffolk County Police Department, Port Washington Police Department and Rockville Centre Police Department. The DEA Tactical Diversion Squad also worked in conjunction with officers and agents of the U.S. Department of Health & Human Services’ Office of the Inspector General and New York City Department of Investigation.
This case is the latest in a series of federal prosecutions by the United States Attorney’s Office for the Eastern District of New York as part of the Prescription Drug Initiative. In January 2012, this Office and the DEA, in conjunction with the five District Attorneys in this district, the Nassau and Suffolk County Police Departments, the New York City Police Department, the New York State Police and other key federal, state and local government partners launched the initiative to mount a comprehensive response to what the United States Department of Health and Human Services Center for Disease Control and Prevention called an epidemic increase in the abuse of so-called opioid analgesics. To date, the initiative has brought over 160 federal and local criminal prosecutions including the prosecution of 20 health care professionals; taken civil enforcement actions against a hospital, a pharmacy and pharmacy chain; removed prescription authority from numerous rogue doctors and expanded information-sharing among enforcement agencies to better target and pursue drug traffickers. The initiative also is involved in an extensive community outreach program to address the abuse of pharmaceuticals.
The government’s case is being handled by the Office’s International Narcotics and Money Laundering Section. Assistant United States Attorneys Francisco J. Navarro, Nomi D. Berenson and Andrew D. Wang and Trial Attorney Michael C. Vasiliadis of the Tax Division are in charge of the prosecution.
The Defendant:
DANIEL E. RUSSO
Age: 44
Cedarhurst, New YorkE.D.N.Y. Docket No. 20-CR-23 (DLI)
Former New York City Police Officer Pleads Guilty to Conspiracy to Distribute and Possess with Intent to Distribute CocaineRead the Press Release
Earlier today, Amaury Abreu, a former police officer with the New York City Police Department (NYPD), pleaded guilty at the federal courthouse in Brooklyn to one count of conspiring to distribute and possess with intent to distribute cocaine. Between approximately January 2016 and October 2020, Abreu assisted a multinational drug trafficking organization (DTO) with distributors in the New York-metropolitan area and the Dominican Republic. When sentenced, Abreu faces up to 20 years in prison.
Breon Peace, United States Attorney for the Eastern District of New York, announced the guilty plea.
“Rather than protect and serve, Officer Abreu helped drug traffickers distribute large amounts of cocaine in the Eastern District of New York by giving them confidential law enforcement information. That was a disgraceful breach of public trust,” stated United States Attorney Peace. “Today’s plea should send the message that police officers who betray the shield and violate the law will be held to account. No one is above the law.”
United States Attorney Peace thanked the New York City Police Department, Internal Affairs Bureau, Department of Homeland Security, Homeland Security Investigations, the Federal Bureau of Investigation, the Drug Enforcement Administration and the Nassau County District Attorney’s Office for their assistance in the investigation.
According to the indictment and other court filings, the DTO imported multi-kilogram quantities of cocaine into the United States through a variety of means, including by sending drug couriers on flights to the United States, concealing narcotics in mail and tractor trucks that enter the United States from Mexico, and concealing narcotics in produce shipments that are imported into the United States. Since 2016, law enforcement agents seized more than 350 kilograms of cocaine belonging to the DTO.
During the charged time period, Abreu abused his position as a police officer to protect his co-conspirators by providing information to the DTO about law enforcement procedures, performing warrant checks on members of the DTO using the NYPD arrest database and, on at least one occasion, receiving cocaine from the DTO.
The investigation was led by the Department of Homeland Security, Homeland Security Investigations, and the Federal Bureau of Investigation, with assistance from the Drug Enforcement Administration, New York City Police Department, Internal Affairs Bureau and the Nassau County District Attorney’s Office.
The government’s case is being prosecuted by the Office’s International Narcotics and Money Laundering Section. Assistant United States Attorneys Erin Reid and Andrew Wang are in charge of the prosecution.
The Defendant:
AMAURY ABREU
Age: 37
Residence: Hauppauge, New YorkE.D.N.Y. Docket No. 23-CR-433 (RRM) (RML)
United Kingdom National Pleads Guilty to Hacking, Securities Fraud, and other CybercrimesRead the Press Release
Earlier today, Idris Dayo Mustapha, a national of Nigeria and the United Kingdom, pleaded guilty to charges of computer intrusion, securities fraud, wire fraud and access device fraud based on his involvement in a ring of hackers and fraudsters who broke into Americans’ email and brokerage accounts in order to defraud and steal over $6 million from their victims. Mustapha was arrested in the United Kingdom in August 2021 and was extradited to the United States in August 2023. Today’s proceeding was held before United States District Judge Pamela K. Chen. When sentenced, the defendant faces up to 20 years in prison.
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 guilty plea.
As set forth in the criminal information and court filings, between 2011 and 2018, Mustapha and his co-conspirators hacked into the computer servers of U.S. financial institutions, reviewed confidential user data, and placed malicious files on the servers. Using the stolen data and stolen passwords that they acquired, they executed various schemes to defraud U.S. victims. First, they accessed victims’ email accounts and, impersonating the victims, caused wire transfers of the victims’ funds for their own benefit. Second, they used their access to the victims’ securities brokerage accounts to steal securities outright by having them transferred out of the accounts. Third, Mustapha and his co-conspirators caused the victims’ brokerage accounts to execute unfavorable trades against accounts that Mustapha and his co-conspirators controlled, generating a profit for themselves at the victims’ expense. Losses attributable to the scheme were in excess of $6 million.
The government’s case is being prosecuted by the Office’s National Security and Cybercrime Section and the Business and Securities Fraud Section. Assistant United States Attorneys Alexander Mindlin, Sarah M. Evans, and Sara K. Winik are in charge of the prosecution. The Justice Department’s Office of International Affairs provided substantial assistance in securing the arrest and extradition from the UK of Mustapha.
The Defendant:
IDRIS DAYO MUSTAPHA
Age: 33
United KingdomE.D.N.Y. Docket No. 23-CR-440 (PKC)
MS-13 Gang Leader Sentenced to Life in Prison for Racketeering Charges Including the Murder of 16-Year-Old Victim in Alley Pond Park in QueensRead the Press Release
Earlier today, in federal court in Brooklyn, Melvi Amador-Rios, a leader 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 life in prison for murder in-aid-of racketeering. The defendant was also sentenced to 80 years in prison for four Hobbs Act robberies, 40 years in prison for ordering a non-fatal shooting and 38 years in prison for firearms charges, to run consecutive to the sentences on all other counts. Amador-Rios was convicted of racketeering, murder in-aid-of racketeering in connection with the May 16, 2017 fatal stabbing of 16-year-old Julio Vasquez in Queens, attempted murder in-aid-of racketeering, assault-in aid-of racketeering, firearms offenses and four counts of Hobbs Act robbery after a three-week jury trial in July and August 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 defendant will deservedly serve a life sentence for the murder, attempted murder and armed robberies he committed on behalf of MS-13,” stated United States Attorney Peace. “Today’s sentence reflects justice for the heinous and senseless nature of the defendant’s crimes and the terror he inflicted on his victims, their families and the community.”
“This is the culmination of another thorough, intelligence-led investigation of a violent gang member who will thankfully never have the opportunity to victimize another New Yorker,” stated NYPD Commissioner Caban. “I commend our NYPD investigators and law enforcement partners, whose tireless efforts on this important case ensured today’s meaningful prison sentence. We vow to remain relentless in identifying, arresting, and holding to full account everyone responsible for driving crime and disorder in our city.”
Murder of Julio Vasquez
As proven at trial, beginning in fall 2016, the CLS clique, led by Amador-Rios, decided to kill a CLS chequeo, or low-level MS-13 member (referred to in the superseding indictment as John Doe 3) 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 he too 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 be killed. On May 16, 2017, Vasquez was lured to a wooded area of Alley Pond Park where co-conspirators Josue Leiva and Luis Rivas stabbed him more than 30 times, 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. They are awaiting sentencing.
2016 Attempted Murder
In October 2016, Amador-Rios ordered a CLS chequeo to kill a member of the rival 18th Street gang. The chequeo targeted a boy that he believed to be a member of the rival 18th Street gang (referred to in the superseding indictment as John Doe 1). In the early morning hours of October 23, 2016, in the vicinity of 179th Street and 90th Avenue in Jamaica, Queens, the CLS chequeo, accompanied by two others, confronted John Doe 1, who was 16 years old at the time. At Amador-Rios’s direction, the chequeos beat John Doe 1, shot him in the head, and attempted to shoot him a second time as he lay on the ground. The gun malfunctioned, but, as a result of the gunshot wound, John Doe 1 was permanently paralyzed. Following the arrests of the chequeos for the shooting, Amador-Rios informed them in a prison call that “you guys already have the pass, you know, to be homeboys, you know,” indicating that they would be promoted in the gang for committing the attempted murder. The three chequeos have each pleaded guilty to their participation in the assault and attempted murder of John Doe 1, including variously assault in-aid-of racketeering, attempted murder in-aid-of racketeering and discharging a firearm in furtherance of a crime of violence.
Amador-Rios also participated in the armed robbery of a money transfer business during which an employee was pistol whipped, three armed robberies of convenience stores in Jamaica, Queens, one during which a four-year-old child was present, and related firearms offenses.
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 MS-13’s leadership was based in El Salvador and Honduras, but 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:
MELVI AMADOR-RIOS (also known as “Letal” and “Pinky”)
Age: 32
Briarwood, New YorkE.D.N.Y. Docket No. 18-CR-398 (S-3) (RPK)
Defendant Pleads Guilty Following Jury Selection to Defrauding Investors of $17 Million in Offering Fraud, Stock Manipulation and Money Laundering SchemesRead the Press Release
Richard Dale Sterritt, Jr., also known as “Richard Richman,” pleaded guilty yesterday at the federal courthouse in Brooklyn to a five-count superseding indictment charging him with conspiracy to commit securities and wire fraud, multiple counts of securities fraud and conspiracy to commit money laundering. A trial in the case had been scheduled to begin yesterday, and Sterritt’s plea took place immediately following jury selection before United States District Judge Kiyo A. Matsumoto. When sentenced, Sterritt faces up to 75 years in prison.
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 guilty plea.
“Investors trusted Sterritt with millions of dollars of their money and he repaid that trust with gimmicks and lies,” stated United States Attorney Peace. “The defendant’s guilty plea at the beginning of his trial is a testament to the hard work and commitment of this Office and our law enforcement partners to holding accountable fraudsters who deceive the investing public.”
Mr. Peace thanked the U.S. Securities and Exchange Commission, New York Regional Office and the Financial Industry Regulatory Authority for their invaluable assistance in the investigation.
As alleged in the superseding indictment, between March 2019 and January 2021, Sterritt and his co-conspirators defrauded investors of more than $17 million that they claimed would be used for an oil and gas venture called Zona Energy. Sterritt misappropriated the lion’s share of investor funds, which he spent on personal expenses, including luxury cars, travel and high-end clothing. Sterritt also wired investor money to other businesses he controlled, including a purported cannabis business, and to his friends and girlfriends. Sterritt used the alias “Richard Richman” when interacting with investors to conceal his prior criminal conviction for securities fraud.
Sterritt also engaged in a stock market manipulation fraud in which he conspired with others to manipulate the price and trading volume of publicly traded shares of OrgHarvest, Inc., which traded under the stock ticker “ORGH.” Sterritt, who secretly controlled the majority of ORGH shares through trusts in the name of his girlfriends, family members, and co-conspirators, sought to sell the fraudulently inflated shares to the investing public via a corrupt stock promoter, who was in reality an undercover law enforcement agent. Sterritt executed a series of matched trades with the undercover agent, after which regulators suspended trading in ORGH. Following the suspension of trading, he attempted to manipulate the price and trading volume of the shares of yet another public company—ERF Wireless, Inc., which traded under the stock ticker “ERFB.”
Sterritt is the last defendant to plead guilty in connection with the charges in the superseding indictment. Five of his co-conspirators pleaded guilty in 2022 and 2023, four of whom are currently awaiting sentencing.
The government’s case is being handled by the Office’s Business and Securities Fraud Section. Assistant United States Attorneys David C. Pitluck, Sarah M. Evans, Nick M. Axelrod, Jessica K. Weigel, and John O. Enright are in charge of the prosecution with assistance from Paralegal Specialist William Daniels.
The Defendant:
RICHARD DALE STERRITT, JR. (also known as “Richard Richman”)
Age: 67
Garland, TexasCo-Conspirators Who Previously Pleaded Guilty:
MICHAEL GREER
Age: 48
Dallas, TexasROBERT MAGNESS
Age: 54
New York, New YorkCHRISTOPHER J. PITTMAN
Age: 52
Dallas, TexasMARK ROSS
Age: 56
Parkland, FloridaROBYN STRAZA
Age: 61
Dallas, TexasE.D.N.Y. Docket No. 21-CR-193 (KAM)
Long Island Man Charged with Sexual Exploitation of Multiple Minor GirlsRead the Press Release
Earlier today, the defendant Brandon Kern was arraigned on an indictment charging him with five counts of sexual exploitation of minors and possession of child pornography. The defendant made his initial appearance before Magistrate Judge Lee Dunst in Central Islip where he was ordered detained.
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 arrest and charges.
“Posing as a teen on Snapchat, the defendant allegedly contacted at least six girls, some as young as twelve years old, and coerced them into sending him sexually explicit photos and videos, and when these girls attempted to block further contact with him, he threatened to expose and humiliate them to family and friends,” stated United States Attorney Peace. “Minors should be free to use their phones without fear of victimization. Our Office will work tirelessly with our federal and local partners to find those who lurk in the shadows of cyberspace and prey on our children.”
Mr. Peace praised the outstanding investigative work of the FBI and the North Olmstead, Ohio Police Department. Mr. Peace also expressed his thanks to the United States Attorney’s Office for the Northern District of Ohio.
“Kern thought he could use technology to outsmart and abuse young girls. His alleged crimes were horrific and the FBI's Long Island Child Exploitation Task Force used every tool available to track him down and arrest him putting a stop to his heinous behavior. There could be more victims and the FBI wants parents or victims to contact law enforcement if they think anyone may have had contact with Kern,” stated FBI Assistant Director-in-Charge Smith.
As set forth in court filings, between December 2020 and October 2021, the defendant exploited numerous victims by forcing them to send him sexually explicit photographs and videos. Thus far, law enforcement has been able to identify six young girls. The defendant was caught when he traveled from Long Island to Ohio to have sex with one victim and threatened her when she got scared and refused to meet him. He was arrested leaving a hotel room with condoms, rope and lubricant. Subsequent searches of his social media accounts revealed contact with numerous other minor victims.
The charges in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty.
This prosecution is part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
The government’s case is being prosecuted by the Office’s Long Island Criminal Division. Assistant United States Attorney Samantha Alessi is in charge of the prosecution.
The FBI has identified several Snapchat accounts through which the defendant communicated with potential victims. If parents believe their children have communicated with any of the below, they should contact the FBI by at tips.fbi.gov or 212-384-1000.
Snapchat Accounts:
- bsublime10
- bsublime11
- bsublime12
- bsublime20
- bsublime28
- bsublime31
- bsublime33
- punkygreen472
The Defendant:
BRANDON THOMAS KERN
Age: 29
Bayport, New YorkTwo Defendants Sentenced for Distributing Heroin and Fentanyl That Caused a Fatal Overdose in QueensRead the Press Release
Earlier today, at the federal court in Brooklyn, Vladimir Esguerra and Jonathan Betancur were sentenced by United States District Judge Eric Komitee to 128 months’ imprisonment and 110 months’ imprisonment, respectively, for conspiracy to distribute controlled substances and distributing the heroin and fentanyl that caused the death of Michael J. Marino.
Breon Peace, United States Attorney for the Eastern District of New York, Ivan J. Arvelo, Special Agent-in-Charge, Homeland Security Investigations, New York (HSI), and Edward A. Caban, Commissioner, New York City Police Department (NYPD), announced the sentences.
“As the defendants admitted in their guilty pleas, they conspired over a period of years to distribute narcotics in our community, and tragically those narcotics had deadly consequences,” stated United States Attorney Peace. “We are facing a national crisis of opioid addiction, which cuts lives short every day in this district and across the country. Today’s sentences send a message that those who prey on people suffering from this disease will be punished. It is our hope that these sentences will deter others from peddling dangerous drugs and provide some measure of comfort to the victim’s family.”
“The opioid crisis has cut a wide swath across our country, affecting people from all walks of life and causing immense harm in every community,” stated NYPD Commissioner Caban. “To combat this scourge locally, the NYPD and our law enforcement partners work relentlessly to disrupt drug trafficking operations and hold those involved fully accountable. The sentences handed down today send a message of support to the families of loved ones lost, promising that we will not rest until justice is delivered.”
As set forth in the government’s sentencing letters and other public documents, Esguerra and Betancur were drug dealers who distributed narcotics together in Queens since at least 2015. Sometimes Esguerra would meet the buyer and handle the transaction himself and sometimes he would send them to Betancur instead. In July 2019, they sold heroin cut with fentanyl to Marino, who suffered a fatal overdose as a result in a pizzeria in Ozone Park, Queens. In September 2019, Betancur was arrested by the NYPD in an unrelated case, and two cellphones that he was carrying were seized. One of them was the same phone he had used to communicate with Marino on the day of the overdose—and the number to which Marino had saved as “Vlad.” Earlier this year, both defendants pleaded guilty to drug trafficking conspiracy and admitted responsibility for Marino’s death.
Assistant United States Attorney Robert M. Pollack is prosecuting the case.
The Defendants:
JONATHAN BETANCUR
Age: 34
Queens, New YorkVLADIMIR ESGUERRA
Age: 41
Queens, New YorkE.D.N.Y. Docket No. 21-CR-525 (EK)
Former New York City Correction Officer Sentenced to 29 Months in Prison for Smuggling Contraband into Rikers Island in Exchange for Nearly $10,000 in Bribe PaymentsRead the Press Release
Earlier today in federal court in Brooklyn, former New York City correction officer Krystle Burrell was sentenced by United States District Judge Kiyo A. Matsumoto to 29 months’ imprisonment for accepting nearly $10,000 in bribe payments in exchange for smuggling contraband into Rikers Island. Burrell was employed by the New York City Department of Corrections (DOC) and worked as a correction officer at Rikers Island.
Breon Peace, United States Attorney for the Eastern District of New York, Ivan J. Arvelo, Special Agent-in-Charge, Department of Homeland Security, Homeland Security Investigations, New York (HSI), Jocelyn E. Strauber, Commissioner, New York City Department of Investigation (DOI), and Edward A. Caban, Commissioner, New York City Police Department (NYPD), announced the sentence.
“Krystle Burrell put her own interests above the safety of incarcerated individuals and other correction officers at Rikers Island by accepting payments for drugs and smuggling cell phones into the jail she was supposed to protect,” stated United States Attorney Peace. “Public corruption is especially harmful when it affects the safety and security of our city’s jails and today’s sentence demonstrates that correction officers face serious consequences for smuggling contraband into Rikers Island.”
DOI Commissioner Jocelyn E. Strauber said, “New York City Correction Officers’ most significant responsibility is to maintain order and safety in our City’s jails. By accepting bribes and smuggling contraband onto Rikers Island, this defendant endangered both the persons in custody, and fellow officers, that she was entrusted to protect. Her prison sentence sends a strong message that officers who misuse their positions of trust will be held accountable. I thank the US Attorney’s Office for the Eastern District of New York for their partnership in our joint efforts to eradicate contraband smuggling in the City jail system.”
“Bringing contraband into a correctional facility undermines the security of the institution and threatens the residents and the officers tasked with keeping them safe,” stated NYPD Commissioner Caban. “Above all else, correction officers are public servants – the majority of whom honor their oaths and serve as stellar examples to the community and those under their care. Ms. Burrell, who blatantly abused her position of authority, was the exact opposite.”
According to court documents and facts presented at today’s sentencing proceeding, Burrell accepted nearly $10,000 in bribes from co-conspirators on behalf of co-defendant Terrae Hinds in exchange for Burrell smuggling contraband into the Anna M. Kross Center on Rikers Island for Hinds. Burrell also accepted payments on behalf of Hinds for narcotics and other contraband so that Hinds could resell the contraband on Rikers Island. After she pleaded guilty in federal court in September 2022 to bribery charges and while on bail pending sentencing, Burrell conspired with Hinds and others to smuggle contraband into the federal Metropolitan Detention Center in Brooklyn where Hinds had been transferred and was being held on federal charges. In March 2023, Burrell was charged with the additional crime of smuggling contraband into a federal prison. Burrell pleaded guilty to smuggling contraband into a federal detention facility and she was also sentenced today for this additional crime.
Hinds previously pleaded guilty to bribing Burrell and is currently awaiting sentencing.
The government’s case is being handled by the Office’s Public Integrity Section. Assistant United States Attorney Philip Pilmar is in charge of the prosecution.
The Defendants:
KRYSTLE BURRELL
Age: 36
Lawrence, NYE.D.N.Y. Docket Nos. 22-CR-196 (KAM); 23-CR-207 (KAM)
Brooklyn Men Indicted for Crimes Relating to the Theft of Postal Keys and Other OffensesRead the Press Release
A four-count indictment was unsealed today in United States District Court for the Eastern District of New York charging Kevin Grant with being a felon in possession of ammunition, possession of five or more false identification documents, possessing stolen United States Postal Service (USPS) arrow keys, and possessing stolen mail. The indictment was returned by a federal grand jury sitting in Brooklyn, New York on November 17, 2023, and relates to Grant’s alleged activities on October 3, 2023.
On October 31, 2023, Tyrone Santos was indicted by a grand jury sitting in the Eastern District of New York for the assault and robbery of two USPS letter carriers, on September 30, 2023, and October 14, 2023, respectively, who were on their delivery routes within the East New York area of Brooklyn. The indictment charges Santos with two counts for each robbery of a U.S. Postal Service employee and two counts for the theft of the postal keys from those employees.
Breon Peace, United States Attorney for the Eastern District of New York and Daniel Brubaker, Inspector-in-Charge, United States Postal Inspection Service, New York Division (USPIS), and Edward A. Caban, Commissioner, New York City Police Department (NYPD) announced the charges.
“As these cases demonstrate, whether it is breaking into a Postal relay box, and possessing a ghost gun or assaulting postal workers, our Office will use all tools available to prosecute those who harm our public servants or public services,” stated U.S. Attorney Breon Peace. “I encourage all to educate themselves and take steps to protect their mail, and for bad actors to recognize the consequences involved in these crimes.”
“Today’s indictment is an example of the commitment of Postal Inspectors to spare no resource in their pursuit to bring those to justice who violate the sanctity of the U.S. Mail, commit criminal acts against USPS letter carriers, and steal from the public. Their reign of terror has ended against our letter carriers, and now they will face the justice they so rightly deserve. I would also like to acknowledge the role of our USPIS NYPD Task Force Officers in this fight. Together, and in partnership with the U.S. Attorney’s Office, eight additional defendants have been charged federally with mail theft related crimes in the past year,” said Inspector in Charge of the New York Division, Daniel B. Brubaker.
“The crimes outlined in these indictments bear witness to what has unfortunately become a national trend, and such acts will never be tolerated in New York City,” said NYPD Commissioner Edward A. Caban. “Together with our federal partners, the NYPD remains committed to using every resource at our disposal to protect the integrity of our mail service and eradicate violent crime in all its forms.”
To combat the rise in mail fraud crimes, the U.S. Attorney’s Office for the Eastern District is highlighting how to protect your mail through flyers translated into English, Spanish and Mandarin. Postal Inspectors and the U.S. Attorney’s Office for the Eastern District of New York encourage all mail theft victims to report it directly to the Postal Inspection Service. Each report is helpful in building impactful cases against those responsible. You can report mail theft, identity theft, fraud or other crimes involving the U.S. mail by calling the Postal Inspection Service’s national toll-free number at 1-877-876-2455 or by going to http://uspis.gov/report and filing an electronic report.
U.S. v. Grant
According to the criminal complaint previously filed against the defendant, on September 5, 2023, the defendant was observed in a black BMW 535 series sedan with Florida license plate #DEP3 that was involved in the unauthorized accessing of a USPS relay box in the Flatbush area of Brooklyn (the “Subject BMW”). Similarly, on September 11, 2023, video surveillance appeared to capture a vehicle consistent with the Subject BMW but with Pennsylvania license plate #MCR5107 that was also involved in the theft of mail from a relay box in the Parkville area of Brooklyn.
On October 3, 2023, NYPD officers initiated a traffic stop of a vehicle consistent with the Subject BMW. As the officers approached the vehicle, the defendant, who was the sole occupant of the vehicle, rolled down his window, observed the officers, and then fled in the vehicle. After a chase, the defendant abandoned the vehicle and fled on foot.
NYPD officers seized the vehicle and conducted an inventory search, during which they discovered a personally manufactured firearm without a serial number (also known as a “ghost gun”) loaded with 15 rounds of ammunition and an additional 39 rounds of ammunition.
The officers also found evidence related to the mail thefts, including the same Florida license plate #DEP3 that had been observed on the Subject BMW during the defendant’s unauthorized access to the relay box on or about September 5, 2023. In addition, within a duffle bag in the vehicle, they found genuine postal arrow keys for the Flatbush area and the Parkville area, a postal uniform, mail addressed to individuals in the Flatbush Area and approximately 100 checks not belonging to the defendant (several of which appeared to have been made out by residents of the Flatbush area).
Within the same duffle bag, NYPD officers also uncovered approximately five fraudulent social security cards with names of other individuals on them, blank credit cards, credit cards with the names of other individuals on them, several identification documents with the defendant’s picture but bearing different names and additional identification documents bearing other pictures and names.
The charges in the indictment are merely allegations, and the defendant is presumed innocent unless and until proven guilty.
The government’s case is being prosecuted by the Office’s General Crimes Section. Assistant United States Attorney Sean M. Sherman is in charge of the prosecution with the assistance of Paralegal Specialist Stephanie Heyward.
U.S. v. Santos
As alleged in the criminal complaint previously filed against the defendant, the U.S. Postal Inspection Service (USPIS) was investigating two robberies of U.S. Postal Service mail carriers while they were on their routes. Both robberies took place two weeks apart, on September 30, 2023 and October 14, 2023, and bore similar characteristics. In both robberies, surveillance footage reveals a perpetrator with similar physical characteristics, wearing similar attire: a gray hooded sweatshirt, black jeans, and tan shoes. Additionally, in both robberies, this perpetrator surveilled young, slight-in-stature female postal carriers on their mail routes, accosted them with a weapon—in the first robbery using what appears to be a pipe and in the second robbery using a firearm—demanded their arrow keys, and then fled the scene. Both robberies took place in a very limited geographic area, within four blocks of each other, and the perpetrator fled to the same residential building after both robberies.
The investigation led authorities to Santos, who was arrested on October 20, 2023, and charged by a federal criminal complaint with the theft of a postal key from a U.S. Postal Service mail carrier. Santos was arrested in his Brooklyn residence without incident by the U.S. Marshals Service Regional Fugitive Task Force, U.S. Postal Inspectors, and the USPIS NYPD Task Force Officers. Separately, the USPIS NYPD Task Force Officers arrested Santos on state first-degree robbery charges.
Santos was arraigned on the criminal complaint on October 20, 2023, before United States Magistrate Judge Taryn A. Merkl at the federal courthouse in Brooklyn and ordered detained. He was arraigned on the indictment on November 6, 2023. The charges in the indictment are merely allegations, and the defendant is presumed innocent unless and until proven guilty.
The government’s case is being prosecuted by the Office’s General Crimes Section. Assistant United States Attorney Amanda Shami is in charge of the prosecution.
The Defendants:
KEVIN GRANT
Age: 29
Brooklyn, New YorkE.D.N.Y. Docket No. 23-CR-477 (OEM)
TYRONE SANTOS
Age: 49
Brooklyn, New YorkE.D.N.Y. Docket No. 23-CR-436 (OEM)
Brooklyn Gang Leader Sentenced to Life in Prison for Murder in Aid of Racketeering and Causing Death Through the Use of a FirearmRead the Press Release
Christopher Acevedo, a founder and leader of the Wood City street gang based in the Woodhull neighborhood of Queens, was sentenced yesterday by United States District Judge Diane Gujarati in federal court in Brooklyn to two terms of life imprisonment to run concurrently, for murder in aid of racketeering and causing death through the use of a firearm. Acevedo was convicted by a federal jury in May 2023 following a two-week trial.
Breon Peace, United States Attorney for the Eastern District of New York, announced the sentence.
“Christopher Acevedo showed his indifference for human life when he murdered David Hutchinson in broad daylight over a petty gang dispute, in order to maintain and burnish his status as the leader of a violent street gang whose members felt insulted by the taking of a piece of jewelry,” stated United States Attorney Peace. “Yesterday’s sentence of life imprisonment demonstrates the heinousness of Acevedo’s crime and sends a message that gun violence has no place in our society.”
Mr. Peace thanked the Federal Bureau of Investigation, New York Field Office, the Drug Enforcement Administration, the New York City Police Department, and the FBI Safe Streets Task Force for their exemplary work on the case.
Since at least 2010, the Wood City gang has been engaged in racketeering activity, including murder, drug trafficking, and various forms of fraud and identity theft. Acevedo was the founder and leader of the gang which was so named because many of its members lived around Woodhull Avenue in Jamaica, Queens. Since at least 2011, Wood City has been involved in a war with rival “Snow Gang,” another violent gang based in Queens. During this period, members of Wood City and Snow Gang would regularly taunt and insult each other using social media platforms and phone calls.
On August 26, 2019, members of Snow Gang, including one of its leaders, robbed a gold “YTB” chain from a high-ranking member of Wood City while he was at a recording studio in Queens. Shortly after the robbery, the Snow Gang leader posted a photo himself wearing the YTB chain on social media. As a leader of Wood City, Acevedo was expected to retaliate for the chain-snatching to protect his gang’s reputation. Acevedo and other Wood City members drove to Snow Gang territory and spotted a vehicle with the Snow Gang leader who had robbed the chain and other members and associates of Snow Gang. After following that vehicle to the front of a deli in the vicinity of 140th Avenue and Springfield Boulevard, Acevedo pulled alongside the vehicle and fired a dozen shots, killing the driver, David Hutchinson. The murder occurred in broad daylight outside a bodega filled with civilians.
The government’s case was prosecuted by Assistant United States Attorneys Kayla C. Bensing and Benjamin Weintraub, and former Assistant United States Attorney James P. McDonald.
The Defendant:
CHRISTOPHER ACEVEDO
Age: 28
Queens, New YorkE.D.N.Y. Docket No. 21-CR-162 (DG)
High-Ranking MS-13 Fugitive Arrested on Terrorism IndictmentRead the Press Release
Today, at the conclusion of a removal hearing, a federal court in Houston, Texas ordered Elmer Canales-Rivera, also known as “Crook de Hollywood,” a high-ranking leader of La Mara Salvatrucha, also known as MS-13, to be transferred in custody to the Eastern District of New York where he and 13 other high-ranking MS-13 leaders were indicted in December 2020 on terrorism offenses relating to their direction of the transnational criminal organization’s criminal activities in the United States, El Salvador, Mexico and elsewhere over the past two decades.
On November 9 2023, Canales-Rivera was arrested by members of the Federal Bureau of Investigation (FBI), Homeland Security Investigations (HSI), and the United States Marshals Service (USMS), when he arrived at George Bush Intercontinental Airport in Houston, Texas. Specifically, Canales-Rivera has been charged with conspiracy to provide and conceal material support to terrorists, conspiracy to commit acts of terrorism transcending national boundaries, conspiracy to finance terrorism and narco-terrorism conspiracy.
Merrick B. Garland, United States Attorney General; Breon Peace, United States Attorney for the Eastern District of New York (EDNY); Christopher A. Wray, Director, FBI; and Alejandro N. Mayorkas, Secretary of Homeland Security announced Canales-Rivera’s arrest and initial appearance.
“We allege that Elmer Canales-Rivera, a founding member of MS-13’s ‘Twelve Apostles of the Devil,’ bears responsibility for the gang’s efforts over decades to terrorize communities, target law enforcement, and sow violence here in the United States and abroad,” said Attorney General Merrick B. Garland. “The arrest of this high-ranking, long-time leader of MS-13 should serve as a warning to MS-13’s other leaders that the Justice Department will hold you accountable for your crimes.”
“The defendant’s appearance in a federal courtroom today in the United States is a giant step in holding him accountable for his significant role as an alleged member of the MS-13 gang’s leadership body known as the ‘Twelve Apostles of the Devil’ and later renamed Ranfla Nacional,” stated United States Attorney Peace. “As alleged, Canales-Rivera along with his co-defendants acted as a board of directors, directing acts of violence, intimidation and material support of terrorists in El Salvador and throughout the United States including in the Eastern District of New York where he will appear next in a federal courtroom in Central Islip to answer these charges.”
This case was brought by Joint Task Force Vulcan (JTFV), which was created to combat MS-13, led by Assistant United States Attorney John J. Durham of the EDNY, and comprised of U.S. Attorney’s Offices across the country, including the District of New Jersey; the Northern District of Ohio; the District of Utah; the District of Massachusetts; the Eastern District of Texas; the Southern District of New York; the Southern District of Florida; the Eastern District of Virginia; the Southern District of California; the District of Nevada; the District of Alaska; and the District of Columbia, as well as other government agencies and offices have been essential partners in JTFV, including the Department of Justice’s National Security Division and the Criminal Division, the FBI; HSI; the U.S. Drug Enforcement Administration; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the USMS; the U.S. Bureau of Prisons; and the United States Agency for International Development, Office of Inspector General.
Mr. Peace expressed his thanks to the FBI’s Los Angeles Field Office, which has spearheaded JTFV’s MS-13 leadership investigations, with critical support provided by the Criminal Investigative Division’s Safe Streets Gang Unit, along with HSI’s National Gangs and Violent Crime Unit and HSI’s New York and Houston Field Offices. Additionally, FBI Legal Attachés in Mexico City and San Salvador, FBI Houston Field Office, HSI Attaché Mexico City, USMS Legal Attaché in Mexico City and the United States Customs and Border Protection Officers at the George Bush Intercontinental Airport in Houston provided critical support in connection with the arrest, as well as the U.S. Attorney's Office and the USMS for the Southern District of Texas for coordinating the initial appearance in Houston.
Mr. Peace also thanked the numerous Department of Justice components that contributed to this indictment, including: the National Security Division’s Counterterrorism Section; the Organized Crime Drug Enforcement Task Forces Executive Office; the Justice Department’s Office of International Affairs; and the Criminal Division’s Office of Overseas Prosecutorial Development, Assistance and Training. In addition, the Department of State, Bureau of International Narcotics and Law Enforcement Affairs and the United States Department of Treasury, Office of Foreign Asset Control have provided valuable assistance for JTFV’s mission.
“With determination and coordinated effort, the FBI and our law enforcement and foreign partners successfully apprehended a violent criminal that directly threatened the safety of our communities," said FBI Director Christopher A. Wray. "This pursuit exemplifies the FBI's commitment to safeguard the American public and continued promise to dismantle criminal networks like MS-13.”
“This arrest makes it clear that there is no hiding place for leaders of criminal syndicates that threaten our communities,” said Secretary of Homeland Security Alejandro N. Mayorkas. “Through the dedication and investigative abilities of HSI agents and our federal partners, we are taking on criminal organizations like MS-13 and helping to bring all those who perpetrate transnational crimes to justice.”
As set forth in the indictment, which was returned on December 16, 2020 and unsealed on January 14, 2021, and related court filings, Canales-Rivera and his co-defendants are part of MS-13’s command and control structure, consisting of the Ranfla Nacional, Ranfla en Las Calles, and Ranfla en Los Penales. They play significant leadership roles in the organization’s operations in El Salvador, Mexico, the United States, and throughout the world. In total, 27 of the highest-ranking leaders of MS-13 have been charged in the Eastern District of New York in this indictment and the related indictment of United States v. Arevalo-Chavez, et al.
As further alleged, in approximately 2002, Canales-Rivera, his co-defendants, and other MS-13 leaders began establishing a highly-organized, hierarchical command and control structure as a means to effectuate their decisions and enforce their orders, even while in prison. They directed acts of violence and murder in El Salvador, the United States, and elsewhere, established military-style training camps for its members and obtained military weapons such as rifles, handguns, grenades, improvised explosive devices (IEDs) and rocket launchers. Further, beginning in approximately 2012, Canales-Rivera and other members of the Ranfla Nacional negotiated with officials from the government of El Salvador (GOES) and obtaied benefits and concessions from the GOES. In order to extract those benefits and concessions from GOES, MS-13 engaged in public displays of violence to threaten and intimidate civilian populations, targeted GOES law enforcement and military officials, and manipulated the electoral process in El Salvador. Canales-Rivera played one of the most prominent roles in MS-13’s negotiations and agreements with the GOES.
Additionally, as alleged, the Ranfla Nacional directed the expansion of MS-13 activities around the world, including the United States and Mexico, where several high-ranking leaders were sent to organize operations, make connections to obtain narcotics and firearms from Mexican drug cartels such as the Zetas, Gulf Cartel, Cártel de Jalisco Nueva Generación (CJNG) and Sinaloa Cartel, and engage in human trafficking and smuggling. The Ranfla Nacional also directed MS-13’s large membership in the United States to engage in criminal activities, such as drug trafficking and extortion to raise money to support MS-13’s terrorist activities in El Salvador and elsewhere.
Finally, the Ranfla Nacional and MS-13’s transnational leadership structure is alleged to have directed members in the United States to commit acts of violence, including murders, to further its goals and implemented rules that enabled MS-13 to entrench itself in parts of the United States, including within the EDNY where, under the defendants’ leadership and rules, MS-13 has committed numerous acts of violence—including murders, attempted murders, assaults, kidnappings, drug trafficking, extortion of individuals and businesses, obstructed justice and sent dues and the proceeds of criminal activity by wire transfer to MS-13 leaders in El Salvador. For example, this Office’s Long Island Criminal Division has prosecuted hundreds of MS-13 leaders, members, and associates for carrying out more than 65 murders in the Eastern District of New York between 2009 and the present.
When the indictment was unsealed in January 2021, Canales-Rivera was in custody in El Salvador serving a prison sentence, and the United States lodged an INTERPOL Red Notice and submitted an extradition request for Canales-Rivera to the GOES. However, in or about November 2021, Canales-Rivera was released from custody by the GOES and then unlawfully entered Guatemala. Canales-Rivera remained a fugitive until November 7, 2023, when he was apprehended by Mexican authorities.
Further, in addition to requesting Canales-Rivera’s extradition, in 2021 and 2022, the United States requested the extradition of 11 of his co-defendants, including Borromeo Enrique Henriquez, also known as “Diablito de Hollywood,” who is widely recognized as the most powerful member of the Ranfla Nacional. To date, the GOES has not extradited any of those defendants.
Two of Canales-Rivera’s co-defendants, Fredy Ivan Jandres-Parada, also known as “Lucky de Park View” and “Lacky de Park View,” and Cesar Humberto Lopez-Larios, also known as “El Grenas de Stoners” and “Oso de Stoners,” and three related defendants from the Arevalo-Chavez indictment, Jorge Alexander De La Cruz, also known as “Cruger de Peatonales,” Juan Antonio Martinez-Abrego, also known as “Mary Jane de Hollywood,” and Francisco Javier Roman-Bardales, also known as “Veterano de Tribus,” remain at large. Members of the public with information concerning their whereabouts are strongly encouraged to contact the FBI’s toll-free MS-13 tip line, 1-866-STP-MS13 (1-866-787-6713), or HSI’s tip line at (866) 347-2423 or https://www.ice.gov/webform/ice-tip-form. Together, FBI and HSI have offered a $20,000 reward for information leading to the arrest and conviction of the fugitives.
These charges are allegations, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law. If convicted, Canales-Rivera faces a maximum sentence of life in prison.
The government’s case is being prosecuted by Assistant U.S. Attorneys John J. Durham, Paul G. Scotti, Justina L. Geraci, and Megan E. Farrell from the Office’s Long Island Criminal Division, with assistance from Assistant U.S. Attorneys James Donnelly (District of New Jersey), Matthew Shepherd (Northern District of Ohio), and Stewart Young (District of Utah) from JTFV.
Newly Arrested Defendant in U.S. Custody:
ELMER CANALES-RIVERA (“Crook de Hollywood”)
Age: 47Fugitive Defendants:
FREDY IVAN JANDRES-PARADA (“Lucky de Park View” and “Lacky de Park View”)
Age: 47CESAR HUMBERTO LOPEZ-LARIOS (“El Grenas de Stoners” and “Oso de Stoners”)
Age: 44Defendants with Pending Extradition Requests, Reportedly in El Salvador Custody:
BORROMEO ENRIQUE HENRIQUEZ (“Diablito de Hollywood”)
Age: 45EFRAIN CORTEZ (“Tigre de Park View” and “Viejo Tigre de Park View”)
Age: 54RICARDO ALBERTO DIAZ (“Rata de Leewards” and “Mousey de Leewards”)
Age: 50EDUARDO ERAZO-NOLASCO (“Colocho de Western” and “Mustage de Western”)
Age: 51EDSON SACHARY EUFEMIA (“Speedy de Park View”)
Age: 49JOSE FERNANDEZ FLORES-CUBAS (“Cola de Western”)
Age: 49LEONEL ALEXANDER LEONARDO (“El Necio de San Cocos”)
Age: 43JOSE LUIS MENDOZA-FIGUEROA (“Pavas de 7-11” and “Viejo Pavas de 7-11”)
Age: 59HUGO ARMANDO QUINTEROS-MINEROS (“Flaco de Francis”)
Age: 50SAUL ANTONIO TURCIOS (“Trece de Teclas”)
Age: 45ARISTIDES DIONISIO UMANZOR (“Sirra de Teclas”)
Age: 45E.D.N.Y. Docket No.: 20-CR-577 (JMA)
High-Ranking MS-13 Fugitive Arrested on Terrorism ChargesRead the Press Release
At the conclusion of a removal hearing, a federal court in Houston, Texas ordered Elmer Canales-Rivera, aka Crook de Hollywood, a high-ranking leader of La Mara Salvatrucha, aka MS-13, to be transferred in custody to the Eastern District of New York where he and 13 other high-ranking MS-13 leaders were indicted in December 2020 on terrorism offenses relating to their direction of the transnational criminal organization’s criminal activities in the United States, El Salvador, Mexico, and elsewhere over the past two decades.
On Nov. 9, Canales-Rivera was arrested by members of the FBI, Homeland Security Investigations (HSI), and the U.S. Marshals Service (USMS) when he arrived at George Bush Intercontinental Airport in Houston, Texas. Specifically, Canales-Rivera has been charged with conspiracy to provide and conceal material support to terrorists, conspiracy to commit acts of terrorism transcending national boundaries, conspiracy to finance terrorism and narco-terrorism conspiracy.
“We allege that Elmer Canales-Rivera, a founding member of MS-13’s ‘Twelve Apostles of the Devil,’ bears responsibility for the gang’s efforts over decades to terrorize communities, target law enforcement, and sow violence here in the United States and abroad,” said Attorney General Merrick B. Garland. “The arrest of this high-ranking, long-time leader of MS-13 should serve as a warning to MS-13’s other leaders that the Justice Department will hold you accountable for your crimes.”
“This arrest makes it clear that there is no hiding place for leaders of criminal syndicates that threaten our communities,” said Secretary of Homeland Security Alejandro N. Mayorkas. “Through the dedication and investigative abilities of HSI agents and our federal partners, we are taking on criminal organizations like MS-13 and helping to bring all those who perpetrate transnational crimes to justice.”
“With determination and coordinated effort, the FBI and our law enforcement and foreign partners successfully apprehended a violent criminal that directly threatened the safety of our communities,” said FBI Director Christopher A. Wray. “This pursuit exemplifies the FBI's commitment to safeguard the American public and continued promise to dismantle criminal networks like MS-13.”
“The defendant’s appearance in a federal courtroom today in the United States is a giant step in holding him accountable for his significant role as an alleged member of the MS-13 gang’s leadership body known as the ‘Twelve Apostles of the Devil’ and later renamed Ranfla Nacional,” said U.S. Attorney Breon Peace for the Eastern District of New York. “As alleged, Canales-Rivera along with his co-defendants acted as a board of directors, directing acts of violence, intimidation, and material support of terrorists in El Salvador and throughout the United States, including in the Eastern District of New York where he will appear next in a federal courtroom in Central Islip to answer these charges.”
As set forth in the indictment, which was returned on Dec. 16, 2020 and unsealed on Jan. 14, 2021, and related court filings, Canales-Rivera and his co-defendants are part of MS-13’s command and control structure, consisting of the Ranfla Nacional, Ranfla en Las Calles, and Ranfla en Los Penales. They play significant leadership roles in the organization’s operations in El Salvador, Mexico, the United States, and throughout the world. In total, 27 of the highest-ranking leaders of MS-13 have been charged in the Eastern District of New York in this indictment and the related indictment of United States v. Arevalo-Chavez, et al.
As further alleged, in approximately 2002, Canales-Rivera, his co-defendants, and other MS-13 leaders began establishing a highly-organized, hierarchical command and control structure as a means to effectuate their decisions and enforce their orders, even while in prison. They directed acts of violence and murder in El Salvador, the United States, and elsewhere, established military-style training camps for its members and obtained military weapons such as rifles, handguns, grenades, improvised explosive devices (IEDs) and rocket launchers. Further, beginning in approximately 2012, Canales-Rivera and other members of the Ranfla Nacional negotiated with officials from the government of El Salvador (GOES) and obtained benefits and concessions from the GOES. In order to extract those benefits and concessions from the GOES, MS-13 engaged in public displays of violence to threaten and intimidate civilian populations, targeted GOES law enforcement and military officials, and manipulated the electoral process in El Salvador. Canales-Rivera played one of the most prominent roles in MS-13’s negotiations and agreements with the GOES.
Additionally, as alleged, the Ranfla Nacional directed the expansion of MS-13 activities around the world, including the United States and Mexico, where several high-ranking leaders were sent to organize operations, make connections to obtain narcotics and firearms from Mexican drug cartels such as the Zetas, Gulf Cartel, Cártel de Jalisco Nueva Generación (CJNG) and Sinaloa Cartel, and engage in human trafficking and smuggling. The Ranfla Nacional also directed MS-13’s large membership in the United States to engage in criminal activities, such as drug trafficking and extortion, to raise money to support MS-13’s terrorist activities in El Salvador and elsewhere.
Finally, the Ranfla Nacional and MS-13’s transnational leadership structure is alleged to have directed members in the United States to commit acts of violence, including murders, to further its goals and implemented rules that enabled MS-13 to entrench itself in parts of the United States, including within the EDNY where, under the defendants’ leadership and rules, MS-13 has committed numerous acts of violence — including murders, attempted murders, assaults, kidnappings, drug trafficking, extortion of individuals and businesses, obstructed justice and sent dues and the proceeds of criminal activity by wire transfer to MS-13 leaders in El Salvador. For example, this the U.S. Attorney’s Office for the Eastern District of New York’s Long Island Criminal Division has prosecuted hundreds of MS-13 leaders, members, and associates for carrying out more than 65 murders in the Eastern District of New York between 2009 and the present.
When the indictment was unsealed in January 2021, Canales-Rivera was in custody in El Salvador serving a prison sentence, and the United States lodged an INTERPOL Red Notice and submitted an extradition request for Canales-Rivera to the GOES. However, in or about November 2021, Canales-Rivera was released from custody by the GOES and then unlawfully entered Guatemala. Canales-Rivera remained a fugitive until Nov. 7, when he was apprehended by Mexican authorities.
Further, in addition to requesting Canales-Rivera’s extradition, in 2021 and 2022, the United States requested the extradition of 11 of his co-defendants, including Borromeo Enrique Henriquez, also known as “Diablito de Hollywood,” who is widely recognized as the most powerful member of the Ranfla Nacional. To date, the GOES has not extradited any of those defendants.
Two of Canales-Rivera’s co-defendants, Fredy Ivan Jandres-Parada, aka Lucky de Park View and Lacky de Park View, and Cesar Humberto Lopez-Larios, aka El Grenas de Stoners and Oso de Stoners, and three related defendants from the Arevalo-Chavez indictment, Jorge Alexander De La Cruz, aka Cruger de Peatonales; Juan Antonio Martinez-Abrego, aka Mary Jane de Hollywood, and Francisco Javier Roman-Bardales, aka Veterano de Tribus, remain at large. Members of the public with information concerning their whereabouts are strongly encouraged to contact the FBI’s toll-free MS-13 tip line, 1-866-STP-MS13 (1-866-787-6713), or HSI’s tip line at 866-347-2423 or www.ice.gov/webform/ice-tip-form. Together, FBI and HSI have offered a $20,000 reward for information leading to the arrest and conviction of the fugitives.
This case was brought by Joint Task Force Vulcan (JTFV), which was created to combat MS-13, led by Assistant U.S. Attorney John J. Durham of the Eastern District of New York, and comprised of U.S. Attorneys’ Offices across the country, including the District of New Jersey; the Northern District of Ohio; the District of Utah; the District of Massachusetts; the Eastern District of Texas; the Southern District of New York; the Southern District of Florida; the Eastern District of Virginia; the Southern District of California; the District of Nevada; the District of Alaska; and the District of Columbia, as well as other government agencies and offices have been essential partners in JTFV, including the Justice Department’s National Security Division and the FBI’s Criminal Division; HSI; U.S. Drug Enforcement Administration (DEA); Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF); USMS; Federal Bureau of Prisons (FBOP); and U.S. Agency for International Development, Office of Inspector General.
The FBI Los Angeles Field Office spearheaded JTFV’s MS-13 leadership investigations, with critical support provided by the Criminal Investigative Division’s Safe Streets Gang Unit, along with HSI’s National Gangs and Violent Crime Unit and HSI’s New York and Houston Field Offices. Additionally, the FBI Legal Attachés in Mexico City and San Salvador, FBI Houston Field Office, HSI Attaché Mexico City, USMS Legal Attaché in Mexico City, and the U.S. Customs and Border Protection Officers at the George Bush Intercontinental Airport in Houston provided critical support in connection with the arrest, as well as the U.S. Attorney’s Office and the USMS for the Southern District of Texas for coordinating the initial appearance in Houston.
Numerous Justice Department components that contributed to this indictment, including: the National Security Division’s Counterterrorism Section; the Organized Crime Drug Enforcement Task Forces (OCDETF) Executive Office; the Justice Department’s Office of International Affairs; and the Criminal Division’s Office of Overseas Prosecutorial Development, Assistance and Training. In addition, the U.S. Department of State’s Bureau of International Narcotics and Law Enforcement Affairs and the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) have provided valuable assistance for JTFV’s mission.
If convicted, Canales-Rivera faces a maximum sentence of life in prison.
Assistant U.S. Attorneys John J. Durham, Paul G. Scotti, Justina L. Geraci, and Megan E. Farrell for the Eastern District of New York’s Long Island Criminal Division are prosecuting the case, with assistance from Assistant U.S. Attorneys James Donnelly for the District of New Jersey, Matthew Shepherd for the Northern District of Ohio, and Stewart Young for the District of Utah from JTFV.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.