Eastern District of New York
Press releases recorded for this federal judicial district.
Federal Jury Convicts Three Defendants of Interstate Stalking of Chinese Nationals in the U.S. and Two of Those Defendants for Acting or Conspiring to Act on Behalf of the People's Republic of ChinaRead the Press Release
Earlier today, a federal jury in Brooklyn returned guilty verdicts against three defendants on multiple counts of a superseding indictment charging them with acting and conspiring to act in the United States as illegal agents of the People’s Republic of China (PRC) without prior notification to the Attorney General. Defendant Michael McMahon was convicted of acting as an illegal agent of the PRC, conspiracy to commit interstate stalking and interstate stalking. Defendant Zhu Yong, also known as “Jason Zhu”, was convicted of conspiracy to act as an illegal agent of the PRC, acting as an illegal agent of the PRC, conspiracy to commit interstate stalking and interstate stalking. Defendant Zheng Congying was convicted of conspiracy to commit interstate stalking and interstate stalking. Defendants McMahon and Zhu knowingly acted at the direction of PRC government officials to conduct surveillance and engage in a campaign to harass, stalk, and coerce certain residents of the United States to return to the PRC as part of a global and extralegal repatriation effort known as “Operation Fox Hunt.” Defendant Zheng engaged in interstate stalking of the same victims, leaving a threatening note at their residence. Today’s verdict followed a three-week trial before United States District Judge Pamela K. Chen. When sentenced, McMahon faces up to 20 years in prison, Zhu faces up to 25 years in prison, and Zheng faces up to 10 years in prison.
Breon Peace, United States Attorney for the Eastern District of New York, Matthew G. Olsen, Assistant Attorney General of the Justice Department’s National Security Division, James E. Dennehy, Special Agent-in-Charge, Federal Bureau of Investigation, New Jersey Field Office (FBI), and Ivan J. Arvelo, Special Agent-in-Charge, Homeland Security Investigations, New York (HSI), announced the verdict.
“The jury’s verdict confirms that defendants McMahon and Zhu knowingly acted at the direction of a hostile foreign state to harass, intimidate and attempt to cause the involuntary return of a resident of the New York metropolitan area to the People’s Republic of China, and that defendant Zheng harassed and intimidated that same person and his family,” stated United States Attorney Peace. “It is particularly troubling that defendant Michael McMahon, a former sergeant in the New York City Police Department, engaged in surveillance, harassment, and stalking on behalf of a foreign power for money. We will remain steadfast in exposing and undermining efforts by the Chinese government to reach across our border and perpetrate transnational repression schemes targeting victims in the United States in violation of our laws.”
Mr. Peace expressed his thanks to the Department of State’s Diplomatic Security Service, and the FBI’s New York Field Office for their valuable assistance with the investigation.
“The defendants engaged in a campaign of harassment and coercion on behalf of the PRC to force the victim’s repatriation to China from the United States, including by threatening family members,” stated Assistant Attorney General Olsen. “The Department of Justice will hold accountable those who would help repressive regimes violate the fundamental freedoms of people in the U.S.”
FBI Special Agent-in-Charge Dennehy stated: “We hope this verdict serves as a message to other operatives in the United States working right now at the behest of the People’s Republic of China in its effort to silence those who speak out against it. The FBI and our law enforcement partners are watching, and we are taking action to stop the stalking, threatening, and repressing of dissidents. A specific takeaway, private investigators will face consequences if they wittingly ignore the warning signs that they may be part of a larger plot to illegally harass and coerce people by a foreign power. If you have concerns, reach out to us.”
“Today’s verdict reinforces HSI’s commitment to aggressively combat any illegal intrusions by the Chinese government to target, threaten, harass, surveil, coerce and intimidate legal residents of the United States,” stated HSI New York Special Agent-in-Charge Arvelo. “Rather than engaging proper officials through lawful diplomatic channels, PRC officials and intermediaries acting on their behalf have engaged in illegal conduct in the United States to carry out their goals. HSI will leverage all of its law enforcement partnerships and utilize all investigative tools to disrupt attempts by international actors to circumvent our laws, undermine our national security, and target U.S. residents.”
As proven at trial, between approximately 2016 and 2019, the defendants participated in an international campaign with members of the PRC government as part of “Operation Fox Hunt” to threaten, harass, surveil, and intimidate John Doe #1 and his family, to force John Doe #1 and his wife, Jane Doe #1, to return to the PRC. In or around 2015, the PRC government caused the International Criminal Police Organization (also known as “Interpol”), an inter-governmental law enforcement organization, to issue “Red Notices” for John Doe #1 and Jane Doe #1 alleging that both persons were wanted by the PRC government on corruption-related charges.
Zhu hired McMahon, a retired NYPD sergeant working as a private investigator, who obtained detailed information about John Doe #1, his wife, and his daughter from a law enforcement database and other government databases, then reported back to Zhu and others, including a PRC police officer, what he had learned. McMahon also conducted surveillance outside the New Jersey home of John Doe #1’s sister-in-law and provided Zhu and PRC officials with detailed reports of what he had observed. The operation was supervised and directed by several PRC officials, including co-conspirators Hu Ji, a PRC police officer with the Wuhan Public Security Bureau, and Tu Lan, a PRC prosecutor with the Wuhan Procuratorate.
In April 2017, Tu Lan and Hu Ji transported John Doe #1’s then-82-year-old father from the PRC to the New Jersey home of John Doe #1’s sister-in-law to attempt to convince John Doe #1 to return to the PRC. The testimony established that John Doe #1’s father was brought by a PRC doctor and charged co-conspirator, Li Minjun, and that while John Doe #1’s father was in the United States, his daughter was threatened with jailing in the PRC. A co-conspirator conducted surveillance of the home during the visit, wearing night-vision goggles provided by the PRC doctor and PRC prosecutor. McMahon tailed John Doe #1 from the meeting with his elderly father, back to his home, and provided John Doe #1’s address—which was previously unknown—to the PRC operatives.
In October 2016 and April 2017, McMahon emailed himself a China Daily News article titled “Interpol Launches Global Dragnet for 100 Chinese Fugitives,” which stated, “Amid the nation’s intensifying antigraft campaign, arrest warrants were issued by Interpol China for former State employees and others suspected of a wide range of corrupt practices. China Daily was authorized by the Chinese justice authorities to publish the information below.” The article provided a list of photographs and identifying information about Operation Fox Hunt targets by the PRC government, including those of John Doe #1 and Jane Doe #1.
On September 4, 2018, Zheng drove to the New Jersey residence of John Doe #1 and Jane Doe #1 and pounded on the front door. He and a coconspirator attempted to force open the door to the residence, then left a note that stated “If you are willing to go back to the mainland and spend 10 years in prison, your wife and children will be all right. That’s the end of this matter!”
Previously, three other defendants pled guilty in connection with their roles in the PRC-directed harassment and intimidation campaign.
The government’s case is being handled by the Office’s National Security and Cybercrime Section. Assistant United States Attorneys Craig R. Heeren, Meredith A. Arfa, and Irisa Chen are in charge of the prosecution, with assistance from Trial Attorney Christine A. Bonomo of the Justice Department’s National Security Division, and Paralegal Specialist Mary Clare McMahon.
The Defendants:
MICHAEL MCMAHON
Age: 55
Mahwah, New JerseyZHU YONG (also known as “Jason Zhu”)
Age: 66
Queens, New YorkZHENG CONGYING
Age: 27
Brooklyn, New YorkE.D.N.Y. Docket No. 21-CR-265 (S-1) (PKC)
Suffolk County to Comply with the Safe Drinking Water Act and Prevent Contamination of the County's Drinking Water SupplyRead the Press Release
Breon Peace, United States Attorney for the Eastern District of New York and Lisa Garcia, Regional Administrator, U.S. Environmental Protection Agency (EPA) Region 2, announced today that the United States filed suit under the Safe Drinking Water Act (SDWA), against Suffolk County, the Suffolk County Department of Parks and Recreation and the Suffolk County Department of Public Works for their longstanding violations of the Underground Injection Well regulations which required Suffolk to close all Large Capacity Cesspools (LCCs) by April 2005 and all Motor Vehicle Waste Disposal Wells (MVWDWs) by January 1, 2008 (Prohibited LCCs and MVWDWs). A Consent Judgment requiring Suffolk County to close all Prohibited LCCs and MVWDWs at an estimated cost of $7,020,000 and pay a $200,000 civil penalty was also lodged with the Court.
“Today’s Consent Judgment will protect the residents of Suffolk County and Long Island’s drinking water from harmful nutrient pollution which poses a risk both to the public health and the natural environment,” said United States Attorney Peace. “This office will continue to vigorously enforce violations of the Safe Drinking Water Act to protect the public from contamination of its water supply and promote environmental justice.”
“This agreement with Suffolk County is a major achievement that will help protect the drinking water of millions of Long Islanders from the harmful impacts of large capacity cesspools and waste disposal wells," said Regional Administrator Lisa F. Garcia. "These types of underground injection wells can pollute groundwater and endanger public health and the environment. EPA is committed to enforcing the Safe Drinking Water Act to ensure that all communities have access to clean water.”
Background
The complaint alleges that the Defendants violated the SDWA in their continued ownership and operation of Prohibited LCCs and MVWDWs at various Suffolk County parks and facilities for years beyond the SDWA regulatory deadline by which they were required to close them.
LCCs are cesspools that receive untreated sanitary waste, including human excreta, which have an open bottom or perforated sides, and have the capacity to serve 20 or more persons a day. Such untreated waste is high in harmful nutrients, such as nitrogen, that can compromise ground and surface water quality. Nutrient pollution of the ground and surface waters in and surrounding Suffolk County is a longstanding problem that threatens the area’s water quality and ecosystem.
MVWDWs are disposal wells that receive fluids from motor vehicle repair or maintenance activities. During normal activities, vehicle fluids—such as engine oil, transmission fluid and antifreeze—when released to a dry well or septic system, can introduce various toxic chemicals into sources of drinking water.
Congress enacted the SDWA to protect the nation’s drinking water sources, including the regulation of LCCs and MVWDWs to prevent them from contaminating underground sources of drinking water. Underground injection wells, including the LCCs and MVWDWs at issue in the Complaint, pose a risk to the public because they can contaminate underground drinking water sources and the public water systems that use those sources.
Consent Judgment
All of the Prohibited LCCs and MVWDWs are above the Nassau/Suffolk County Sole Source Aquifer, an already stressed sole source aquifer that supplies drinking water to the entire population of Suffolk County and most of the population of Long Island. Because discharges from LCCs and MVWDWs have the potential to discharge to groundwater, through which contamination may migrate, such discharges impact all communities receiving drinking water from the Sole Source Aquifier, including communities that have been historically exposed to disproportionate environmental burdens.
Under the Consent Judgment, Defendants will close all the Prohibited LCCs and MVWDWs, convert them to lawful uses and prevent further contamination. LCCs associated with most buildings will be converted to Innovative Alternative Solutions (IASs), with significant environmental benefits, particularly in the area of nitrogen reduction to nutrient compromised waters and protection of groundwater on Long Island. IASs significantly decrease nitrogen discharges from wastewater. The estimated cost of these measures and the closing of all Prohibited LCCs and MVWDWs is $7,020,000. Defendants have already implemented certain measures to achieve compliance with the SDWA, including closing one of the Prohibited MVWDWs. The remainder of the MVWDWs will be closed within 30 days of entry of the Consent Judgment. The LCCs will be closed and converted in a phased schedule. The Consent Judgment also requires Defendants to pay a $200,000 civil penalty.
The proposed settlement which is subject to a 30-day public comment period is available here: https://justice.gov/enrd/consent-decrees.
Assistant United States Attorney Deborah B. Zwany is in charge of the litigation, with assistance from Phyllis Kaplan Feinmark and Lauren Fischer, Regional Counsel's Office, EPA Region 2; Doughlas McKenna, Chief of the Water Compliance Branch, EPA Region 2; Nicole Foley Kraft, Chief of the Ground Water Compliance Section, EPA Region 2; and Lisa Kim Pelcyger, Environmental Engineer, Water Compliance Branch, EPA.
E.D.N.Y. Docket No. 23-CV-4369
consent_decree_and_judgment.6.14.2023.pdf complaint.6.14.2023.ecf_filed.pdfNew York City Transit Worker and New York State Court Officer Plead Guilty to Covid-19 Loan FraudRead the Press Release
Earlier today, at the federal courthouse in Central Islip, Arthur Cornwall, a signal maintainer with the New York City Transit Authority, and Sean Williams, a New York State Court Officer, pleaded guilty to conspiring to commit wire fraud in connection with their receipt of approximately $770,000 in small business loans under the Paycheck Protection Program (PPP) and Economic Injury Disaster Loan Program (EIDLP). Today’s proceeding was held before United States Magistrate Judge Steven I. Locke. When sentenced, Cornwall and Williams each face up to 30 years in prison, as well as restitution totaling more than $770,000 and a fine of up to $1.5 million.
Breon Peace, United States Attorney for the Eastern District of New York and Daniel Brubaker, Inspector-in-Charge, United States Postal Inspection Service, New York Division (USPIS), announced the guilty pleas.
“The abuse of disaster relief programs is a serious crime, and it is reprehensible that two civil servants would blatantly steal from these programs for small businesses and families struggling during the pandemic,” stated United States Attorney Peace. “The defendants are being held accountable. This case should serve as a reminder that while the worst days of the pandemic are in the past, law enforcement has a long memory for those who defrauded those relief programs.”
Inspector in Charge of the New York Division Daniel B. Brubaker said: “The government response to the COVID-19 Pandemic was unprecedented in its scope to help those who desperately needed government assistance in an extraordinary time in our nation’s history. These civil servants schemed and defrauded the public, in violation of their sworn oaths, by stealing money that should have gone to support our communities and not to fund their lifestyles. Postal Inspectors and our partners in the U.S. Attorney’s Office are committed to vigorously investigating and pursuing such offenders in order to maintain the integrity of and public confidence in disaster relief programs. Today’s guilty pleas are the result of this commitment.”
As set forth in court filings, between May 2020 and July 2020, amid the COVID-19 pandemic, Cornwall and Williams fraudulently applied for, and received, at least six PPP and EIDLP loans, totaling approximately $770,000, on behalf of purported corporate entities they controlled. As part of the scheme designed to mislead the SBA and a financial institution disbursing the funds, the supporting documentation submitted by the defendants contained false information, including the identity of the individual applying for the loan, the number of employees, revenue, payroll costs, and the intended use of the loan proceeds. Instead of using the funds for disaster relief, Cornwall and Williams diverted them for their personal use, including the discharge of personal credit card debt and the purchase of cryptocurrency.
Congress created the PPP and EIDLP as part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act. Enacted on March 29, 2020, the CARES Act provided emergency financial assistance in connection with economic effects of the COVID-19 pandemic. One source of relief provided by the CARES Act was the allocation of funds for the issuance of forgivable loans to small businesses for job retention and certain other expenses through the PPP. The PPP allowed qualifying small businesses to receive unsecured loans on favorable terms, which they were required to use for specified expenses, including payroll costs, interest on mortgages, rent and utilities. The PPP provided for forgiveness of the loan if the recipient businesses spent the proceeds on these specified expenses within a limited time period and used a certain percentage for payroll costs.
Another source of relief provided by the CARES Act was the EIDLP, which provided low-interest financing to small businesses, renters, and homeowners in regions affected by declared disasters. Under the program, EIDLP recipients were eligible to receive advances of up to $10,000 for small businesses within three days of applying for an EIDL (EIDL Advance). The amount of an EIDL Advance was determined based on the number of employees working for the applicant. The EIDL Advance did not have to be repaid.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorney Bradley T. King is in charge of the prosecution.
The Defendants:
ARTHUR CORNWALL
Age: 42
West Babylon, New YorkSEAN WILLIAMS
Age: 41
Valley Stream, New YorkE.D.N.Y. Docket No. 23-CR-238 (JMA)
Social Worker Sentenced to 42 Months in Prison for Defrauding Program for Developmentally Delayed ChildrenRead the Press Release
Earlier today, at the federal courthouse in Brooklyn, social worker Enock Mensah was sentenced by United States District Judge Ann M. Donnelly to 42 months’ imprisonment for health care fraud and theft of federal funds after a jury found him guilty of defrauding the New York State Early Intervention Program (EIP), a public program designed to provide remedial services to developmentally delayed children. Mensah was also ordered to pay over $177,000 in restitution. Mensah was convicted in December 2019 following a one-week trial.
Breon Peace, United States Attorney for the Eastern District of New York, Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation (FBI), and Jocelyn E. Strauber, Commissioner, New York City Department of Investigation (DOI), announced the sentence.
“Mensah shamefully enriched himself at the expense of the children who the Early Intervention Program is meant to benefit,” stated United States Attorney Peace. “With today’s sentence, the defendant paid the price for abusing the trust placed in him as a social worker for vulnerable families. This case should deter others who would attempt to defraud public benefit programs.”
“With today's sentence, Mr. Mensah will face the consequences of taking advantage of a program designed to assist those in need of specialized care. For all those willing to exploit the public benefit system for their own self interest, let this case serve as a warning. The FBI and our partners are committed to eradicating abuse and fraud in these systems,” stated FBI Assistant Director-in-Charge Driscoll.
“This defendant’s reprehensible scheme deprived children with special needs of assistance they required and deserved; today he faces the serious consequences of his illegal conduct,” stated DOI Commissioner Strauber. “DOI is proud to work with the U.S. Attorney's Office for the Eastern District of New York and the FBI to protect the public funds that support critical services for New York’s children and families.”
Between August 2013 and October 2018, Mensah fraudulently billed Medicaid and EIP for more than 1,700 therapy sessions that never occurred, resulting in the theft of more than $145,000 in Medicaid funds and more than $29,000 in New York City Department of Health and Mental Hygiene funds. At the trial, several parents of special needs children testified that Mensah did not provide therapy sessions to which their families were entitled under the program, despite documents showing that Mensah claimed to have done so and submitted claims forms for payment to the health care agencies. One parent testified that she was in the Dominican Republic with her autistic child when Mensah billed for two purported therapy sessions with them. Mensah fabricated more than one thousand session notes in order to receive payment for work he had not done. In some cases, he forged the parents’ signatures on these claims forms; in others, he persuaded them to sign blank forms, which he later filled with falsified information and used to justify payment.
The government’s case is being handled by the Office’s Public Integrity Section. Assistant United States Attorneys Ryan Harris, Anthony Bagnuola, and Oren Gleich are in charge of the prosecution with assistance of Paralegal Specialist Melissa Bennett.
The Defendant:
ENOCK MENSAH
Age: 62
Franklin Park, New JerseyE.D.N.Y. Docket No. 19-CR-60 (S-1) (AMD)
Bloods Gang Leader Sentenced to 37 Years in Prison for Murder-for-Hire Committed at McDonald's Drive-ThruRead the Press Release
Earlier today, at the federal courthouse in Brooklyn, United States District Judge Hector Gonzalez sentenced Bushawn Shelton to 37 years’ imprisonment for his leadership role in the October 4, 2018 killing of 71-year-old Sylvester Zottola and the July 11, 2018 attempted murder of Salvatore Zottola. The defendant pleaded guilty to murder-for-hire and murder-for-hire conspiracy on August 22, 2022.
Co-defendants Anthony Zottola and Himen Ross were sentenced to life imprisonment following their convictions at trial. Co-defendants Herman Blanco, Arthur Codner, Jason Cummings, and Branden Peterson previously pleaded guilty and were sentenced to lengthy terms of imprisonment that ranged from 16 to 22 years.
Breon Peace, United States Attorney for the Eastern District of New York, and Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the sentence.
“For more than a year, the defendant led the charge in stalking, beating, stabbing, and eventually shooting an elderly man purely for money,” stated United States Attorney Peace. “The lengthy sentence meted out brings an end to the brutality of this violent group. The community is safer as a result.”
As proven at the trial of Shelton’s co-conspirators, Anthony Zottola, Sr., hired Bushawn Shelton to kill Zottola’s father, Sylvester, and his brother, Salvatore. Shelton recruited numerous others to commit the murders, and together they engaged in a year-long conspiracy to carry out a series of violent attacks against Sylvester and Salvatore Zottola. Among other attempts, on November 26, 2017, Sylvester Zottola was menaced at gunpoint by a masked individual. On December 27, 2017, three men invaded Sylvester Zottola’s residence, struck him on the head with a gun, stabbed him multiple times, and slashed his throat. Zottola survived the attack. On July 11, 2018, a gunman shot Salvatore Zottola in the head, chest, and hand in front of his residence. Zottola survived the shooting.
Shelton arranged for the placement of a tracking device on Sylvester Zottola’s car, allowing co-defendant Himen Ross, a fellow Bloods gang member, to track Sylvester Zottola to a McDonald’s restaurant on Webster Avenue. There, while Zottola waited at the drive-through to pick up a cup of coffee, Ross fatally shot him multiple times. Ross and Shelton exchanged texts immediately after the hit, and then Shelton and Anthony Zottola exchanged texts, in which Anthony was informed that his father had just been murdered. Shelton texted Anthony Zottola: “Can we party today or tomorrow?” Anthony Zottola assured Shelton that he would have Shelton’s payment for carrying out the murder ready soon: “I have the cases of water in a day or so.” A photograph later recovered from one of Shelton’s cellular telephones depicts a cardboard box of bottled water, as well as over $200,000 in banded currency.
The government’s case is being handled by the Office’s Organized Crime and Gangs Section. Assistant United States Attorneys Kayla C. Bensing, Emily J. Dean, Devon Lash, and Andrew M. Roddin are in charge of the prosecution, with the assistance of paralegal specialist Brittany Wissel. Assistant United States Attorney Brian Morris assisted with forfeiture matters.
The Defendant:
BUSHAWN SHELTON (also known as “Shellz”)
Age: 39
Brooklyn, New YorkE.D.N.Y. Docket No. 18-CR-609 (S-3) (HG)
OneTaste Founder and Former Head of Sales Indicted for Forced Labor ConspiracyRead the Press Release
An indictment was unsealed this morning in federal court in Brooklyn charging Nicole Daedone, founder and former Chief Executive Officer, and Rachel Cherwitz, former Head of Sales, of OneTaste, Inc. (OneTaste), a wellness education company founded in San Francisco, California. Daedone and Cherwitz are both charged with forced labor conspiracy in connection with a years-long scheme to obtain the labor and services of a group of OneTaste members—including volunteers, contractors, and employees of OneTaste—by subjecting them to economic, sexual, emotional and psychological abuse, surveillance, indoctrination, and intimidation.
Cherwitz was arrested this morning and is expected to appear in the U.S. District Court for the Northern District of California this afternoon. Cherwitz will be arraigned in the Eastern District of New York at a later date. Daedone remains at large.
Breon Peace, United States Attorney for the Eastern District of New York, and Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the charges.
“Under the guise of empowerment and wellness, the defendants are alleged to have sought complete control over their employees’ lives, including by driving them into debt and directing them to perform sexual acts while also withholding wages,” said U.S. Attorney Peace. “This prosecution should serve as a reminder to both employer and employee that no matter the marketing mantra, this conduct is never acceptable.”
“The defendants advertised their company as being able to help individuals recover from past trauma. In reality, they allegedly targeted their victims in order to manipulate them not only into debt but to limit their independence and create a reliance on OneTaste for basic needs. The FBI will continue to ensure that anyone willing to engage in a forced labor schemes are held accountable in the criminal justice system,” stated FBI Assistant Director-in-Charge Driscoll.
OneTaste
As alleged in the indictment and court documents, OneTaste branded itself as a sexuality-focused wellness education company founded by Nicole Daedone in 2004. From approximately 2004 through 2018, OneTaste generated revenue by providing courses, coaching and events related to so-called wellness practices, in exchange for a fee. Many OneTaste members lived in residential warehouses where they participated in courses and experimented sexually.
At various points in time, OneTaste maintained operations in, among other locations, New York City, San Francisco, Denver, Las Vegas, Boulder, Los Angeles, Austin and London. In New York City, OneTaste leased residences and hosted events in several different locations, including in Brooklyn, Harlem, Hells Kitchen, Soho and West Village neighborhoods.
Daedone served as the Chief Executive Officer and a leader of OneTaste from the company’s founding until approximately 2017. Rachel Cherwitz served as OneTaste’s Head of Sales from approximately 2009 through 2018.
The Scheme
As alleged in the indictment, between approximately 2004 and 2018, Daedone and Cherwitz deployed a series of abusive and manipulative tactics in order to obtain the labor and services of a group of OneTaste members who were volunteers, contractors, and employees of OneTaste. Daedone and Cherwitz intentionally targeted for recruitment to OneTaste individuals who had suffered prior trauma and advertised that OneTaste’s courses and teachings could heal past sexual trauma and dysfunction. If the members could not afford OneTaste’s courses—which ranged from hundreds to tens of thousands of dollars each—Daedone and Cherwitz induced the OneTaste members to incur debt, and at times directly assisted the OneTaste members in opening new credit cards, to pay for them.
Daedone and Cherwitz also undertook tactics designed to render the OneTaste members dependent on OneTaste for their shelter and basic necessities, and to limit the OneTaste members’ independence and control. Among other things, they subjected the OneTaste members to constant surveillance in communal homes and collected deeply sensitive and personal information about them which the defendants then used to render the OneTaste members emotionally, socially and psychologically dependent on OneTaste. They isolated the OneTaste members from their support networks by breaking up established relationships and assigning them to move to new locations on short notice. While employing such tactics, Daedone and Cherwitz demanded absolute commitment to Daedone, including by exalting Daedone’s teachings and ideology. As part of this ideology, Daedone and Cherwitz instructed the OneTaste members to engage in sexual acts—including acts the members found uncomfortable or repulsive— as a requirement to supposedly obtain freedom and enlightenment and demonstrate their commitment to OneTaste and Daedone.
Upon securing the allegiance of the OneTaste members through these tactics, Daedone and Cherwitz engaged in abusive employment practices. For example, Daedone, Cherwitz and other OneTaste leaders promised to pay the OneTaste members wages and commissions for work performed on behalf of OneTaste and subsequently failed to pay the OneTaste members the amounts owed, or changed the OneTaste members’ employment statuses or locations without advance notice. Daedone and Cherwitz also recruited and groomed OneTaste members to engage in sexual acts with OneTaste’s current and prospective investors, clients, employees and beneficiaries, for the financial benefit of OneTaste and, in turn, themselves.
The charges in the indictment are allegations, and the defendants are presumed innocent unless and until proven guilty. If convicted, Daedone and Cherwitz each face a maximum sentence of 20 years’ imprisonment.
If you believe you are or may be a victim in this case, please call the FBI New York’s main line at 212-384-5000.
The government’s case is being handled by the Office’s Civil Rights Section. Assistant United States Attorneys Lauren H. Elbert, Gillian Kassner, Devon Lash and Jonathan Siegel are in charge of the prosecution, with assistance from Paralegal Specialist Anna November.
The Defendants:
NICOLE DAEDONE
Age: 56
San Diego, CaliforniaRACHEL CHERWITZ
Age: 43
Philo, CaliforniaE.D.N.Y. Docket No. 23-CR-146 (DG)
The City of New York Agrees to Clean up Radioactive Materials on City-Owned Property in Queens, New YorkRead the Press Release
Breon Peace, United States Attorney for the Eastern District of New York, announced today that the City of New York has agreed to remediate radioactive materials on New York City-owned property located near the former Wolff-Alport Chemical Company facility, and to pay the United States $1.6 million for costs incurred by the U.S. Environmental Protection Agency (EPA). Under a proposed Consent Judgment filed with the Court today, the City of New York will fund and perform remedial work on City property.
“This action protects New York City residents and communities from exposure to hazardous substances including radioactive waste at the Wolff-Alport Site,” stated United States Attorney Peace. “This settlement demonstrates that this Office and our Environmental Justice Team are committed to addressing environmental concerns, including the removal of hazardous substances from communities that have been disproportionally burdened by environmental health hazards.”
"EPA has collaborated extensively with local, state and federal partners to address risks posed by this Superfund site since our first actions in 2012. This agreement tackles the continued cleanup of radioactive pollution on the City-owned portion of the Wolff-Alport Chemical Company Superfund site and pays back EPA $1.6 million for its vital work to safeguard public health," said EPA Regional Administrator Lisa F. Garcia. "Today's settlement takes us one step closer to completing our cleanup of this site so that one day it will be restored land that is ready for reuse and economic activity."
Background
The Wolff-Alport Company operated at the facility on the Wolff-Alport Chemical Company Superfund Site (Wolff-Alport Site) from the 1920s until 1954. The Wolff-Alport Chemical Company Superfund Site (Wolff-Alport Site) is located in Ridgewood, Queens, which borders Bushwick, Brooklyn. The company’s operations included importing monazite sand that was processed to extract rare earth elements. Residues from the processing of the monazite sands contained radioactive materials, including thorium and uranium, along with their decay products, such as radium. These materials contain radionuclides, which are hazardous substances.
The company disposed of these hazardous wastes in the New York City sewer system or buried them on the former facility. Exposure to these radionuclides and their decay products either internally or externally can cause damage to deoxyribonucleic acid and body tissues, and can cause an increase in the risk of cancer over a lifetime.
Consent Judgment
After conducting extensive assessments of the Wolff-Alport Site, EPA added it to the National Priorities List (NPL) in 2014 and issued a Record of Decision in 2017, which sets forth the site remediation plan. Further information concerning the Wolff-Alport Site and the ongoing remediation can be found here.
The United States lodged a proposed Consent Judgment, which sets forth the terms of the settlement with the City of New York pursuant to the federal Comprehensive Environmental Response, Compensation, and Liability Act, commonly known as the Superfund statute. The agreement provides for the City to perform the cleanup of contamination at City owned property to protect human health and the environment, reimbursement to EPA of $1.6 million of its relevant past response costs, and for the City of New York to make periodic payments for future EPA oversight costs related to the cleanup of property owned by the City of New York. The Consent Judgment also includes a Statement of Work which sets forth the parameters of the City’s remedial work commitments.
The proposed Consent Judgment will remain lodged with the District Court for a period of at least 30 days, and notice of the Consent Judgment will be published in the Federal Register. This will afford members of the public the opportunity to submit comments on the Consent Judgment to the Department of Justice prior to it seeking court approval of the settlement.
The United States Attorney’s Office for the Eastern District of New York vigorously enforces the nation’s environmental laws to address environmental, health, and climate impacts on individuals and communities within the district. Any member of the public who wishes to notify the United States of environmental justice concerns may contact the Office’s Environmental Justice Team here.
The case was handled by Assistant United States Attorneys Ekta Dharia and Matthew Silverman from the United States Attorney’s Office for the Eastern District of New York, EPA Office of Regional Counsel Team Leader James Doyle, Assistant Regional Counsel Jean Regna, EPA New York Remediation Branch Section Chief Joel Singerman and Remedial Project Manager Thomas Mongelli.
E.D.N.Y. Docket No. 23-CV-476
Long Island Man Sentenced to 41 Months in Prison for Multi-Million-Dollar Ponzi SchemeRead the Press Release
Earlier today, at the federal courthouse in Central Islip, John Quadrino was sentenced by United States District Judge Joan M. Azrack to 41 months’ imprisonment and over $3.3 million restitution for directing a Ponzi scheme utilizing Princess Cut Industries, Inc., Sassy Jewelry Buyers, Inc. and Golden Glitter Trading, Inc. (collectively referred to as the “Gold Purchasing Companies”). Quadrino told investors that their money would be invested in the sale of gold, jewelry and diamonds, via the Gold Purchasing Companies. In reality, Quadrino never invested their money. In April 2018, Quadrino pleaded guilty to one count of conspiring to commit wire fraud.
Breon Peace, United States Attorney for the Eastern District of New York, Michael J. Driscoll, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Anne T. Donnelly, Nassau County District Attorney, announced the sentence.
“The defendant blatantly stole the money of hard-working men and women in our community for the sole purpose of enriching himself until his Ponzi scheme collapsed under the weight of his lies,” stated United States Attorney Peace. “Today’s prison sentence punishes the defendant for the financial ruin he has inflicted on investors who had trusted him.”
“Dozens of investors handed over their savings to this defendant based on empty promises, and in the end, he personally spent and gambled away millions of dollars of their hard-earned money,” stated District Attorney Donnelly. “I commend our law enforcement partners at the FBI and U.S. Attorney’s Office for their work securing today’s prison sentence, and ensuring this defendant cannot further victimize anyone else.”
Quadrino represented to potential investors that the Gold Purchasing Companies were involved in the sale of gold, jewelry and diamonds to refineries and jewelers. He asked investors to invest large sums of money, for fixed periods of time, in exchange for a guaranteed, fixed rate of return at the end of the agreed upon time period. Quadrino never actually purchased gold, jewelry or diamonds in any significant quantities. Instead, Quadrino systematically engaged in a classic Ponzi scheme, over the course of five years, returning investor principal and interest from the investor capital of other victims. As a result, investors invested approximately $13.1 million with the Gold Purchasing Companies and suffered total losses of approximately $3.3 million. The defendant used investor capital to issue checks to himself and to pay for his personal gambling expenses.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorney Mark E. Misorek is in charge of the investigation with assistance provided by Special Assistant United States Attorney Matthew Sotirhos of the Nassau County District Attorney’s Office.
The Defendant:
JOHN QUADRINO
Age: 57
Oceanside, New YorkE.D.N.Y. Docket No. 17-CR-153 (JMA)
Long Island Doctor Sentenced to 36 Months in Prison for Illegal Distribution of OxycodoneRead the Press Release
Earlier today, in federal court in Central Islip, Frank Parasmo, a former medical doctor, was sentenced by United States District Judge Joan M. Azrack to 36 months in prison for his conviction on 32 counts of unlawfully distributing oxycodone, a highly addictive prescription painkiller, to 18 patients without a legitimate medical purpose. As part of the sentence, Parasmo also received 3 years of supervised release.
Breon Peace, United States Attorney for the Eastern District of New York, and Frank A. Tarentino III, Special Agent-in-Charge, Drug Enforcement Administration, New York Division (DEA), announced the verdict.
“Today’s sentence demonstrates that there are significant consequences for doctors who act as drug dealers,” stated U.S. Attorney Peace. “This Office remains committed to using all tools available to address the damage the opioid crisis does to our communities.”
“DEA’s investigative and regulatory focus is to keep the public safe and healthy,” stated DEA Special Agent-in-Charge Tarentino. “Parasmo’s actions were irresponsible to his patients and endangered theirs and others’ safety and well-being; his disregard of pertinent information such illicit drug use and the diversion of highly addictive opioid prescriptions was egregious. I commend the DEA’s Long Island District Office-Tactical Diversion Squad and the Eastern District of New York U.S. Attorney’s Office for their tenacious work on this investigation.”
As proven at trial, between January 2014 and February 2015, Parasmo provided prescriptions for oxycodone and hydrocodone pills to 18 of his patients without a legitimate medical purpose and outside the course of a professional medical practice. Parasmo issued prescriptions to patients who had just left detox treatment in rehabilitation facilities, as well as patients who had just been discharged from a hospital following an overdose. In addition, Parasmo issued prescriptions to many patients he knew were taking illegal drugs or who he suspected were addicts. There is a significant risk of an overdose when oxycodone is taken with heroin and cocaine.
In several instances, Parasmo continued to write prescriptions for individuals who he had been warned were not taking their pills as prescribed and, in some instances, possibly reselling them on the streets. From 2010 to 2015, Dr. Parasmo prescribed over 1.5 million oxycodone and hydrocodone pills, making him one of the top prescribers of those painkillers in New York State during that period. Notably, after learning that the DEA was investigating his prescribing practices, Parasmo cut in half the number of oxycodone prescriptions he issued annually.
This case was investigated by the DEA’s Long Island District Office Tactical Diversion Squad, comprising agents and officers of the DEA, Nassau County Police Department, Suffolk County Police Department, Port Washington Police Department, and Department of Health and Human Services-Office of Inspector General.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorneys Michael Maffei and Charles P. Kelly are in charge of the prosecution.
The Defendant:
FRANK PARASMO
Age: 76
Deer Park, New YorkE.D.N.Y. Docket No. 19-CR-1 (JMA)
Long Island Businessman Pleads Guilty to Multi-Million Dollar Covid-19 Loan FraudRead the Press Release
Earlier today, at the federal courthouse in Central Islip, Donald Finley, a Locust Valley businessman and owner of the now-defunct Jekyll & Hyde theme restaurant in Manhattan and the Bayville Adventure Park on Long Island, pleaded guilty to disaster relief fraud and wire fraud in connection with his receipt of millions of dollars in small business loans under the Paycheck Protection Program (PPP) and Economic Injury Disaster Loan Program (EIDLP). Today’s proceeding was held before United States Magistrate Judge Arlene R. Lindsay. When sentenced, Finley faces up to 30 years in prison, as well as restitution totaling more than $3.2 million and a fine of up to $1.25 million.
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), and Daniel Brubaker, Inspector-in-Charge, United States Postal Inspection Service, New York Division (USPIS), announced the guilty plea.
“Finley has admitted diverting millions of dollars in COVID-19 disaster relief funds to finance his personal expenses, including the purchase of a home in Nantucket, Massachusetts,” stated United States Attorney Peace. “This Office will continue investigating and prosecuting those, like the defendant, who shamelessly steal from government programs that were intended for struggling small businesses and families during the pandemic.”
“We have seen the abuses of disaster relief programs when all too often criminals find an opportunity for exploitation. In this case, Finley obtained millions in COVID-19 relief funds, only to use the ill-gotten cash for his own personal gain. While he may be the owner of an amusement park meant to bring joy, with his guilty plea and pending sentencing, Finley may be facing a future that he could find much less enjoyable,” stated IRS-CI Special Agent-in-Charge Fattorusso.
“Mr. Finley took advantage of a program intended to be used to support small businesses as part of the CARES Act of 2020, when he devised a scheme to submit fraudulent information to the government to obtain millions in funds during the pandemic to fund his lavish lifestyle. Not only did he purchase a home on Nantucket, but he utilized those funds to pay for personal expenses. Postal Inspectors and their law enforcement partners are always on a mission to ensure those who truly need assistance get it, and those who scheme and break the law to receive funds which they are not entitled to, are brought to justice,” stated USPIS Inspector-in- Charge Brubaker.
As set forth in court filings, between March 2020 and March 2021, amid the COVID-19 pandemic, Finley fraudulently applied for, and received, at least 29 PPP and EIDLP loans totaling approximately $3.2 million, on behalf of corporate entities he controlled. Instead of using the funds for disaster relief, Finley diverted them for personal use, including the purchase of a home in Nantucket, Massachusetts, in February 2021.
Congress created the PPP and EIDLP as part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act. Enacted on March 29, 2020, the CARES Act provided emergency financial assistance in connection with economic effects of the COVID-19 pandemic. One source of relief provided by the CARES Act was the allocation of funds for the issuance of forgivable loans to small businesses for job retention and certain other expenses through the PPP. The PPP allowed qualifying small businesses to receive unsecured loans on favorable terms, which they were required to use for specified expenses, including payroll costs, interest on mortgages, rent and utilities. The PPP provided for forgiveness of the loan if the recipient businesses spent the proceeds on these specified expenses within a limited time period and used a certain percentage for payroll costs.
Another source of relief provided by the CARES Act was the EIDLP, which provided low-interest financing to small businesses, renters, and homeowners in regions affected by declared disasters. Under the program, EIDLP recipients were eligible to receive advances of up to $10,000 for small businesses within three days of applying for an EIDL (EIDL Advance). The amount of an EIDL Advance was determined based on the number of employees working for the applicant. The EIDL Advance did not have to be repaid.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorney Mark E. Misorek is in charge of the prosecution.
The Defendant:
DONALD FINLEY
Age: 61
Locust Valley, New YorkE.D.N.Y. Docket No. 23-CR-181 (JMA)
Willie Junior Maxwell II, also known as "Fetty Wap" Sentenced to 6 Years' Imprisonment for Drug Trafficking ConspiracyRead the Press Release
Earlier today, in federal court in Central Islip, United States District Judge Joanna Seybert sentenced William Junior Maxwell II, who is the rap artist known as “Fetty Wap,” to six years’ imprisonment and five years of post-release supervision for conspiracy to distribute cocaine. On March 7, 2023, Judge Seybert sentenced Maxwell’s co-defendant Anthony Cyntje, a New Jersey correction officer, to 72 months’ imprisonment for his role in the drug trafficking conspiracy. Maxwell’s remaining four co-defendants pleaded guilty and are awaiting sentencing.
Breon Peace, United States Attorney for the Eastern District of New York; Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI); Raymond A. Tierney, District Attorney for Suffolk County; and Rodney K. Harrison, Commissioner, Suffolk County Police Department (SCPD), announced the sentence.
According to court filings, from approximately June 2019 through June 2020, the defendants distributed more than 100 kilograms of cocaine, heroin, fentanyl and crack cocaine across Long Island and New Jersey. The defendants obtained the narcotics on the west coast and used the United States Postal Service and drivers with hidden vehicle compartments to transport the controlled substances across the country to Suffolk County, where they were stored. The drugs were then distributed to dealers, who sold them on Long Island and in New Jersey. Five of the defendants also used firearms to protect their drug organization and distribution chain. Defendants Anthony Leonardi, Robert Leonardi, Brian Sullivan, and Kavaughn Wiggins participated in the purchase and transportation of the narcotics from the west coast to the east coast where they were processed, stored and ultimately resold. Maxwell was a kilogram-level redistributor for the trafficking organization, and Cyntje transported kilograms of cocaine from Long Island to New Jersey.
Search warrants executed during the investigation resulted in the recovery of approximately $1.5 million in cash, 16 kilograms of cocaine, 2 kilograms of heroin, numerous fentanyl pills, two 9mm handguns, a rifle, a .45 caliber pistol, a .40 caliber pistol, and ammunition.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorneys Christopher C. Caffarone and Andrew P. Wenzel, and Special Assistant United States Attorney Jacob T. Kubetz are in charge of the prosecution, with the assistance of Paralegal Specialist Samantha Schroder.
The Defendants:
ANTHONY CYNTJE
Age: 25
Passaic, New JerseyANTHONY LEONARDI
Age: 49
Coram, Long IslandROBERT LEONARDI
Age: 28
Levittown, PennsylvaniaWILLIE JUNIOR MAXWELL II (also known as “Fetty Wap”)
Age: 31
Paterson, New JerseyBRIAN SULLIVAN
Age: 27
Lake Grove, Long IslandKAVAUGHN L. WIGGINS (also known as “KV”)
Age: 28
Coram, Long IslandE.D.N.Y. Docket No. 21-CR-452 (JS)
Court-Ordered Consent Decree Allows for Sale and Redevelopment of Port Jefferson Superfund SiteRead the Press Release
Breon Peace, United States Attorney for the Eastern District of New York, announced today that the United States District Court has approved a consent decree that ends litigation against Lawrence Aviation Industries, Inc. (LAI) and its former CEO and owner for violations of the Comprehensive Environmental Response, Compensation, and Liability Act of 1980 (CERCLA), commonly known as the Superfund statute. The resolution will allow for the redevelopment of the Port Jefferson Station, New York property where LAI operated.
The Superfund statute protects human health and the environment, while safeguarding taxpayer dollars, by holding parties that contributed to contamination responsible for cleaning it up. Since 1980, the Environmental Protection Agency’s (EPA) Superfund program has managed the cleanup of the nation’s high-priority hazardous sites and has responded to environmental emergencies, oil spills, and natural disasters.
The LAI Superfund Site includes an area approximately 125 acres in size located off Sheep Pasture Road in Port Jefferson in Suffolk County, New York. Pursuant to the terms of the Consent Decree, which was approved by United States District Judge Joan M. Azrack, the six parcels comprising the Site will be enhanced in value and sold for redevelopment by a company established by the Suffolk County Landbank Corporation. The Consent Decree provides that the possible future uses of the property will include a regionally significant infrastructure project and an industrial park.
“This settlement will enable a previously contaminated property to be put to uses that will benefit Port Jefferson and the greater Suffolk County community,” said United States Attorney Breon Peace. “In the process, the EPA will recover at least some of the enormous costs expended in remediating the LAI Superfund Site and protecting our environment from hazardous substances.”
Mr. Peace expressed his gratitude to the EPA for its partnership in litigating and resolving the Government’s claims.
“This settlement that will not only recover some of the costs of cleaning up the LAI Superfund site but also pave the way for its redevelopment and revitalization," said Regional Administrator Lisa F. Garcia. "This is a win-win situation for the environment and the community of Port Jefferson Station, which will benefit from new infrastructure and economic opportunities long into the future.”
LAI conducted titanium sheet metal manufacturing operations at the Site, mostly for the aeronautics industry, from 1959 to approximately 2004. The EPA determined that LAI’s operations resulted in releases of a number of hazardous substances and contaminants into the environment, including trichloroethene (TCE), acid wastes, oils, sludge, metals, and other plant wastes. As a result, the Site was placed on the Superfund National Priorities List and the EPA has since conducted a number of response actions at the Site. These actions have included construction of treatment systems designed to capture, treat, and prevent further migration of TCE, a known carcinogen, in groundwater beneath the Site. It is the EPA’s intention to treat the groundwater to the point that the water can again be used as part of the drinking water supply. In addition, the EPA has remediated soil at the Site by removing polychlorinated biphenyls (PCBs), another known carcinogen, removed asbestos from buildings at the Site, and installed soil vapor mitigation systems in several nearby locations which are inspected annually.
In order to recover EPA’s response costs, the United States filed suit against LAI and its owner and CEO, Gerald Cohen, asserting five claims for relief pursuant to CERCLA. See United States v. Lawrence Aviation Industries, Inc, No. CV-06-04818 (JMA). After trial on the merits, the Court ruled in favor of the Government by Order dated March 19, 2019, finding LAI and Cohen liable to the EPA for $48,116,024.31 in costs and $750,000 each in penalties. The Court also found that the EPA had valid liens on the LAI property.
Following the trial, the only remaining question was the relative priority of claims of interest filed against the property by other federal agencies, New York State, Suffolk County, and several private parties as well as the EPA. The Consent Decree resolves this remaining issue by allocating recoveries from the sale of the property among the EPA and other claimants.
The case is being handled by Assistant United States Attorney Richard K. Hayes, with the assistance of EPA Region 2 attorneys James Doyle, Leilani Davis and Andrea Leshak.
New York Construction Company Owner Pleads Guilty to Filing False ReturnRead the Press Release
A New York man pleaded guilty today to filing a false corporate tax return for his construction business.
According to court documents and statements made in court, Pawel A. Bartoszek of Lake Grove, New York, owned and operated a construction company, Mega State Inc. From 2015 through 2017, Bartoszek cashed checks he received from Mega State clients for services rendered rather than deposit them in the company’s bank account. As a result, Bartoszek concealed approximately $6.1 million in business income from his tax return preparer and caused the tax returns for Mega State submitted to the IRS to falsely understate its gross income.
Bartoszek is scheduled to be sentenced on Sept. 26, and faces a maximum penalty of three years in prison. He also faces a period of supervised release, restitution and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Breon Peace for the Eastern District of New York made the announcement.
IRS-Criminal Investigation is investigating the case.
Trial Attorneys Ann M. Cherry and Catriona Coppler of the Justice Department’s Tax Division are prosecuting the case.
Former NYPD Police Officer Sentenced to 33 Months Imprisonment for Engaging in Bribery SchemeRead the Press Release
Earlier today, at the federal courthouse in Brooklyn, Michael Perri, a former New York City Police Department (NYPD) police officer, was sentenced by United States District Judge Rachel P. Kovner to 33 months of imprisonment and a $25,000 fine for conspiring to use interstate facilities to commit bribery. Perri has already paid the government over $158,000 in forfeiture. During the relevant period, Perri was a recently retired NYPD police officer formerly assigned to the 107th Precinct in Queens. Perri pleaded guilty to the charge in November 2022. Perri’s co-defendant, James Davneiro, a NYPD police officer in the 107th Precinct during the relevant period, was sentenced in March 2023 to one year of imprisonment after pleading guilty to the same offense. Another of Perri’s co-defendants, Giancarlo Osma, also a NYPD police officer with the 107th Precinct during the relevant period, was sentenced in April 2023 to 14 months’ imprisonment, after pleading guilty to the same offense.
Breon Peace, United States Attorney for the Eastern District of New York, Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Keechant L. Sewell, Commissioner, New York City Police Department (NYPD), announced the sentence.
“Michael Perri, after retiring from the NYPD, conspired with two police officers to betray their oaths and the public with promises of easy money, and as a result, they have all been sentenced to prison for their corruption,” stated United States Attorney Peace. “This Office will vigorously investigate and prosecute public servants and their associates who exploit their positions of power for private gain.”
“Dedicated to uncovering and eradicating corruption in all its forms, investigators with our Internal Affairs Bureau worked tirelessly since the outset of this case,” stated NYPD Commissioner Sewell. “There must always be zero tolerance for such betrayals of public trust. I thank our partners with the FBI’s Public Corruption Unit and everyone from the U.S. Attorney’s Office for the Eastern District who helped to guide this case through to its conclusion.”
According to court filings, Perri orchestrated a scheme to pay thousands of dollars in bribes to co-defendants Davneiro and Osma for their corrupt agreement to assist an automobile repair and tow trucking business that Perri had begun operating upon his retirement from the NYPD (the “Business”). Beginning in May 2020, Davneiro and Osma responded to automobile accidents and directed the damaged vehicles to the Business operated by Perri, instead of using the NYPD’s Directed Accident Response Program (DARP), which requires NYPD officers to identify an appropriate licensed tow trucking business to respond to the scene of the automobile accident and remove the damaged vehicles from the scene. To ensure that no particular business receives favored treatment, NYPD officers are required to use a computer system that randomly selects a licensed tow trucking business. Davneiro and Osma bypassed DARP and directed damaged vehicles directly to the Business in exchange for thousands of dollars in bribe payments paid by Perri. Perri, Davneiro, and Osma continued to participate in the scheme until May 2021, when they were arrested. In total, Davneiro and Osma steered at least 73 vehicles damaged in automobile accidents to Perri, resulting in total profits to the Business of more than $150,000. In exchange, Perri paid Davneiro and Osma more than $50,000 in bribes in total.
The government’s case is being handled by the Office’s Public Integrity Section. Assistant United States Attorney Ryan C. Harris is in charge of the prosecution.
The Defendants:
JAMES DAVNEIRO
Age: 44
Bayside, New YorkGIANCARLO OSMA
Age: 40
Deer Park, New YorkMICHAEL PERRI
Age: 34
East Islip, New YorkE.D.N.Y. Docket No. 21-CR-508 (RPK)
Brookdale Hospital Agrees to Civil Settlement to Resolve Allegations that Former Employees Defrauded a Federally Funded Nutrition ProgramRead the Press Release
The Brookdale Hospital Medical Center, a nonprofit hospital based in Brooklyn, has agreed to pay $300,000 to the United States to resolve allegations that it violated the False Claims Act based on the conduct of former employees who engaged in a scheme to defraud the Special Supplemental Nutrition Program for Women, Infants, and Children (WIC). Brookdale cooperated fully throughout the investigation. The settlement agreement, which resolved claims under the Federal False Claims Act, was approved yesterday by United States District Judge I. Leo Glasser.
Breon Peace, United States Attorney for the Eastern District of New York and Bethanne M. Dinkins, Special Agent-in-Charge, United States Department of Agriculture, Office of Inspector General (USDA-OIG), announced the settlement.
“Our Office worked with Brookdale to arrive at a fair and just resolution that holds Brookdale accountable while crediting its cooperation,” stated United States Attorney Peace. “This settlement demonstrates our Office’s commitment to holding healthcare providers accountable when their employees engage in misconduct that defrauds federal programs like the USDA-funded WIC program.”
Mr. Peace expressed his gratitude for the support of the New York State Department of Health, Bureau of Special Investigations for their assistance in investigating these claims.
“The WIC program was created to provide food and nutrition to those who truly need this assistance,” stated USDA-OIG Special Agent-in-Charge Bethanne M. Dinkins. “Those who are involved in fraud and abuse of USDA-funded programs will be investigated by our office to the fullest extent. Our joint investigation with the New York State Department of Health, Bureau of Special Investigations identified those who sought to defraud WIC. USDA-OIG will continue to dedicate investigative resources, working with our law enforcement and prosecutorial partners, in order to protect the integrity of these programs.”
The USDA-funded WIC program provides grants to states for supplemental foods, health care referrals, and nutrition education for lower-income pregnant, breastfeeding, and non-breastfeeding postpartum women, and to infants and children who are found to be at nutritional risk. The United States contends that between 2010 and 2016, former Brookdale employees, including the former director of Brookdale’s WIC program, engaged in a scheme to defraud the WIC program by, among other things, causing ineligible persons to be qualified for WIC benefits and misappropriating WIC program funds. The United States further alleges that these former employees falsified time sheets and other records concerning work purportedly performed by breastfeeding peer counselors, and falsified budget records to inflate Brookdale’s purported requirements for WIC funds.
The settlement includes the resolution of a civil action brought under the qui tam or whistleblower provisions of the False Claims Act against Brookdale. Under the qui tam provisions of the False Claims Act, a private party can file an action on behalf of the United States and receive a portion of the settlement if the government takes over the case and reaches a monetary agreement with the defendant. The qui tam case is captioned United States ex rel. Young v. The Brookdale Hospital Medical Center, No. 19-CV-2272 (E.D.N.Y.).
The claims resolved by the settlement are allegations only and there has been no determination of liability.
The government’s case was handled by Assistant United States Attorney Michael J. Castiglione.
The Defendant:
The Brookdale Hospital Medical Center
E.D.N.Y. Docket No. 19-CV-2272 (ILG)
Federal Court Permanently Shuts Down New York Tax PreparerRead the Press Release
A federal court in the Eastern District of New York has permanently enjoined a tax return preparer and her Brooklyn-based business from preparing federal tax returns for others and from owning, operating, or working for any tax return preparation business in the future.
The civil complaint filed in the case alleged that Melida Portorreal, through her tax return preparation company, International Travel Multi & Tax Corp., prepared fraudulent federal income tax returns for others. According to the complaint, Portorreal prepared and filed fraudulent federal tax returns for others that included the following schemes:
- reporting false filing statuses, including, in at least one instance, using one customer’s name and social security number to qualify another customer for Head of Household filing status without either customer’s knowledge or consent;
- fabricating erroneous itemized deductions to reduce taxable income, including false student loan interest deductions, false educator expense deductions, and false employee business expense deductions;
- fabricating business expenses; and
- claiming non-deductible expenses on customers’ tax returns in order to obtain entitlement to the earned income tax credit and the child tax credit.
The complaint alleges the IRS estimated that Portorreal filed returns due for the 2018, 2019, and 2020 tax years that caused losses to the United States exceeding $1 million in each year.
According to the court’s order, Portorreal and her company consented to entry of the injunction, which permits the United States to conduct post-judgment discovery to monitor compliance with the injunction. The order requires that they (1) send notice of the injunction to each person for whom Portorreal and her company prepared federal tax returns, amended tax returns, or claims for refund from February 25, 2021 through May 31 2022, and (2) post an electronic copy of the injunction on any business social media profile currently maintained or created over the next five years.
Deputy Assistant Attorney General David A. Hubbert of the Justice Department’s Tax Division made the announcement.
Shady tax return preparers remain a concern of the IRS, which recently warned taxpayers about unscrupulous tax return preparers are part of the IRS’s Dirty Dozen series. Taxpayers seeking a return preparer should remain vigilant against unscrupulous tax preparers. The IRS has information on its website for choosing a tax return preparer and has launched a free directory of federal tax preparers. The IRS also offers 10 tips to avoid tax season fraud and ways to safeguard their personal information.
In the past decade, the Department of Justice Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Founder and President of European Defense Conglomerate Charged with Helping the Russian Military Evade U.S. Sanctions and Export ControlsRead the Press Release
A criminal complaint was unsealed today in federal court in Brooklyn charging Dr. Nikolaos “Nikos” Bogonikolos with wire fraud conspiracy and smuggling. Bogonikolos, a Greek national, was arrested in Paris, France on May 9, 2023 and remains in custody pending the resolution of extradition proceedings.
Breon Peace, United States Attorney for the Eastern District of New York, Matthew G. Olsen of the Justice Department’s National Security Division, Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), Jonathan Carson, Special Agent-in-Charge, Bureau of Industry and Security (BIS), Office of Export Enforcement, New York Field Office announced the charges.
“As alleged, while ostensibly operating as a defense contractor for NATO and other ally countries, the defendant and his Aratos Group were double dealing, helping to fuel Russia’s war effort and their development of next generation weapons,” stated United States Attorney Peace. “Our Office continues to work tirelessly to ensure that disruptive technologies do not fall into the wrong hands.”
Mr. Peace thanked the Justice Department’s Office of International Affairs for their assistance in this case, the FBI’s Legal Attaché offices in Paris and the Netherlands, and the U.S. Customs and Border Protection Attaché office in Paris for their assistance in this case. The United States thanks the French and Dutch authorities for their assistance.
“These charges demonstrate the Justice Department’s commitment to preventing sensitive technology from falling into the hands of foreign adversaries, including Russia, China, and Iran,” said Matthew G. Olsen of the Justice Department’s National Security Division. “We will not tolerate those who would violate U.S. laws to allow authoritarian regimes and other hostile nations to use advanced technology to threaten U.S. national security and undermine democratic values around the world.”
“As alleged, Bogonikolos conspired with a network of companies orchestrated by the Russian intelligence services to fraudulently acquire and then smuggle U.S.-origin military and dual-use technologies to aid the Russian defense and security sectors. Bogonikolos procured sensitive equipment meeting NATO specifications designed for tactical battlefield conditions as well as components with applications in space-based and cryptographic communications, on behalf of his Russian intelligence handlers seeking to improve their country’s warfighting capabilities. This case highlights the FBI’s commitment to keeping critical technologies away from America’s adversaries, and dismantling the criminal networks complicit in Russia’s war of aggression," stated FBI Assistant Director in Charge Driscoll.
“As alleged, the defendant and his company not only violated US law, but further assisted Russia’s illegal war of aggression to include the development of disruptive technologies,” stated BIS Special Agent-in-Charge Carson. “BIS’s Office of Export Enforcement, working with our Strike Force partners, will continue to aggressively investigate export violations and bring violators to justice wherever-located-worldwide.”
As alleged in the complaint, the defendant headed the Aratos Group (Aratos), a collection of defense and technology companies in the Netherlands and Greece, which are both member countries of the North Atlantic Treaty Organization (NATO). According to Aratos’ website, the companies’ areas of expertise included “Space Technologies,” “Homeland Security,” “Blockchain,” and “Counter-Drone Systems.”
One of Aratos’ subsidiaries, Aratos Systems BV, was a finalist in the NATO Innovation Challenge for space applications in 2021 for a proposal involving the use of artificial intelligence and blockchain technology for satellites and spacecraft. In the proposal, the defendant represented that he had experience advising the European Parliament and “governments worldwide,” and that Aratos had supplied defense equipment and related technologies to countries in the Middle East, Africa and Asia.
However as alleged in the complaint, since 2017 the defendant has been involved in smuggling U.S.-origin military and dual-use technologies to Russia in violation of U.S. law. These highly regulated and sensitive components included advanced electronics and sophisticated testing equipment used in military applications, including quantum cryptography and nuclear weapons testing, as well as tactical battlefield equipment. The defendant claimed that these items were to be used by Aratos, when in reality they were illegally reshipped and sent to Russia. Some of the Russian end users included nuclear and quantum research facilities, as well as “Military Unit 33949,” which is part of the Russian Foreign Intelligence Service, known as the “SVR.” As described in the complaint, many of these orders were solicited by Serniya Engineering and Sertal LLC (the “Serniya Network”), Moscow-based companies that operate under the direction of Russian intelligence services. Following Russia’s invasion of Ukraine in February 2022, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) and the Department of Commerce (DOC) Bureau of Industry and Security (BIS) levied sanctions against Serniya, Sertal, and several individuals and companies used in the scheme, calling them “instrumental to the Russian Federation’s war machine.”
As alleged in the complaint, the defendant was recruited as a procurement agent for Russia in and around 2017. In an email message with a Serniya affiliate, on December 27, 2017, the defendant was told to come to Moscow alone “since the agenda will be a very sensitive one.” Regarding one subsequent order, the defendant advised that he would falsify an export license, saying “I sign that the items are only for Netherlands; . . . Sensitive case . . . For the same reason I cannot press the [U.S.] supplier.” The defendant also signed false end use statements and provided them to U.S. companies, certifying that Aratos was the end user of the requested items, that Aratos would not reexport the goods elsewhere, and that the goods would not be used for weapons development.
The charges in the complaint are allegations, and the defendant is presumed innocent unless and until proven guilty.
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, along with Trial Attorney Scott A. Claffee of the National Security Division’s Counterintelligence and Export Control Section, with assistance from Litigation Analyst Ben Richmond.
The Defendant:
NIKOLAOS BOGONIKOLOS
AGE: 59
Athens, GreeceE.D.N.Y. Docket No. 23-MJ-412
Long Island Man Sentenced to 30 Years in Prison for Producing and Possessing Child Pornography Dating Back to the 1990sRead the Press Release
Earlier today, in federal court in Central Islip, New York, United States District Judge Gary R. Brown sentenced Daniel Mullan to 30 years’ imprisonment for sexually exploiting a child and the possession of child pornography. According to court filings and facts presented during the sentencing, Mullan sexually exploited a child in between 1999 and 2006 as part of his ongoing sexual abuse of children and production of child pornography. Mullan was also convicted of possessing large quantities of child pornography between 2014 and 2017, much of which he produced over the course of decades. Based upon the criminal statutes in place at the time of Mullan’s offenses, 30 years’ imprisonment was the maximum term allowed by law.
Breon Peace, United States Attorney for the Eastern District of New York, and Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the sentence.
Today’s sentence is a just punishment for the defendant’s years of heinous acts against minors, and sends a message to all who seek to harm innocent children,” stated United States Attorney Breon Peace. “This Office and our law enforcement partners will continue to make every effort to ensure that those who contribute to the exploitation and victimization of children will be brought to justice.”
Mr. Peace extended his grateful appreciation to the FBI Long Island Child Exploitation and Human Trafficking Task Force, which is made up of FBI and local law enforcement agencies, for its investigative work and assistance in the case.
According to court filings, in the summer of 2017 the FBI and the Suffolk County Police Department executed search warrants on Mullan’s Elmont, New York residence and a storage unit Mullan had rented in Melville, New York. During the searches, law enforcement recovered hundreds of images and videos of child sexual abuse. Several of the videos depicted Mullan engaged in sexual acts with minor teenage boys dating back to the early 1980s.
Additional investigation by the FBI located numerous victims, including a minor who Mullan had travelled with domestically and internationally between 1999 and 2006. Mullan had recorded his sexual abuse of this victim. Another search warrant executed by law enforcement on a safe deposit box located over $300,000 in cash that Mullan had intended to use as “hush money” for one of his victims. Mullan was extradited to the United States from Ireland on August 15, 2019.
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 handled by the Long Island Criminal Division. Assistant United States Attorneys Michael Maffei and Madeline O’Connor are in charge of the prosecution. The Department of Justice’s Office of International Affairs assisted in the extradition.
The Defendant:
DANIEL MULLAN
Age: 83
Elmont, New YorkE.D.N.Y. Docket No. 17-CR-495 (GRB)
Congressman George Santos Charged with Fraud, Money Laundering, Theft of Public Funds, and False StatementsRead the Press Release
CENTRAL ISLIP, NY – A 13-count indictment was unsealed today in the United States District Court for the Eastern District of New York charging George Anthony Devolder Santos, better known as “George Santos,” a United States Congressman representing the Third District of New York, with seven counts of wire fraud, three counts of money laundering, one count of theft of public funds, and two counts of making materially false statements to the House of Representatives.
The indictment was returned yesterday under seal by a federal grand jury sitting in Central Islip, New York. Santos was arrested this morning and will be arraigned this afternoon before U.S. Magistrate Judge Arlene R. Lindsay at the federal courthouse in Central Islip, New York.
Breon Peace, United States Attorney for the Eastern District of New York, Kenneth A. Polite, Jr., Assistant Attorney General of the Justice Department’s Criminal Division, and Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Anne T. Donnelly, District Attorney, Nassau County, announced the charges.
“This indictment seeks to hold Santos accountable for various alleged fraudulent schemes and brazen misrepresentations,” stated United States Attorney Peace. “Taken together, the allegations in the indictment charge Santos with relying on repeated dishonesty and deception to ascend to the halls of Congress and enrich himself. He used political contributions to line his pockets, unlawfully applied for unemployment benefits that should have gone to New Yorkers who had lost their jobs due to the pandemic, and lied to the House of Representatives. My Office and our law enforcement partners will continue to aggressively root out corruption and self-dealing from our community’s public institutions and hold public officials accountable to the constituents who elected them.”
“The Criminal Division’s Public Integrity Section is committed to rooting out fraud and corruption, especially when committed by our elected officials,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “As alleged, Santos engaged in criminal conduct intended to deceive and defraud the American public. As this indictment reflects, the Department of Justice will hold accountable anyone who engages in such criminality.”
“As today's enforcement action demonstrates, the FBI remains committed to holding all equally accountable under the law. As we allege, Congressman Santos committed federal crimes, and he will now be forced to face the consequences of his actions. I would like to commend the diligent efforts of the investigative and prosecutorial teams in this matter,” stated FBI Assistant Director-in-Charge Driscoll.
“At the height of the pandemic in 2020, George Santos allegedly applied for and received unemployment benefits while he was employed and running for Congress,” stated District Attorney Donnelly. “As charged in the indictment, the defendant’s alleged behavior continued during his second run for Congress when he pocketed campaign contributions and used that money to pay down personal debts and buy designer clothing. This indictment is the result of a lengthy collaboration between law enforcement agencies, and I thank our partners at the U.S. Attorney’s Office, the Department of Justice and the Federal Bureau of Investigation for their dedication to rooting out public corruption.”
Mr. Peace also thanked the U.S. Department of Labor, Office of Inspector General, the New York State Department of Labor (NYS DOL), and the Queens County District Attorney’s Office for their assistance.
As alleged in the indictment, Santos, who was elected to Congress last November and sworn in as the U.S. Representative for New York’s Third Congressional District on January 7, 2023, engaged in multiple fraudulent schemes.
Fraudulent Political Contribution Solicitation Scheme
Beginning in September 2022, during his successful campaign for Congress, Santos operated a limited liability company (Company #1) through which he allegedly defrauded prospective political supporters. Santos enlisted a Queens-based political consultant (Person #1) to communicate with prospective donors on Santos’s behalf. Santos allegedly directed Person #1 to falsely tell donors that, among other things, their money would be used to help elect Santos to the House, including by purchasing television advertisements. In reliance on these false statements, two donors (Contributor #1 and Contributor #2) each transferred $25,000 to Company #1’s bank account, which Santos controlled.
As alleged in the indictment, shortly after the funds were received into Company #1’s bank account, the money was transferred into Santos’s personal bank accounts—in one instance laundered through two of Santos’s personal accounts. Santos allegedly then used much of that money for personal expenses. Among other things, Santos allegedly used the funds to make personal purchases (including of designer clothing), to withdraw cash, to discharge personal debts, and to transfer money to his associates.
Unemployment Insurance Fraud Scheme
Beginning in approximately February 2020, Santos was employed as a Regional Director of a Florida-based investment firm (Investment Firm #1), where he earned an annual salary of approximately $120,000. By late-March 2020, in response to the outbreak of COVID-19 in the United States, new legislation was signed into law that provided additional federal funding to assist out-of-work Americans during the pandemic.
In mid-June 2020, although he was employed and was not eligible for unemployment benefits, Santos applied for government assistance through the New York State Department of Labor, allegedly claiming falsely to have been unemployed since March 2020. From that point until April 2021—when Santos was working and receiving a salary on a near-continuous basis and during his unsuccessful run for Congress—he falsely affirmed each week that he was eligible for unemployment benefits when he was not. As a result, Santos allegedly fraudulently received more than $24,000 in unemployment insurance benefits.
False Statements to the House of Representatives
Finally, the indictment describes Santos’s alleged efforts to mislead the House of Representatives and the public about his financial condition in connection with each of his two Congressional campaigns.
Santos, like all candidates for the House, had a legal duty to file with the Clerk of the House of Representatives a Financial Disclosure Statement (House Disclosures) before each election. In each of his House Disclosures, Santos was personally required to give a full and complete accounting of his assets, income, and liabilities, among other things. He certified that his House Disclosures were true, complete, and correct.
In May 2020, in connection with his first campaign for election to the House, Santos filed two House Disclosures in which he allegedly falsely certified that, during the reporting period, his only earned income consisted of salary, commission, and bonuses totaling $55,000 from another company (Company #2), and that the only compensation exceeding $5,000 he received from a single source was an unspecified commission bonus from Company #2. In actuality, Santos allegedly overstated the income he received from Company #2 and altogether failed to disclose the salary he received from Investment Firm #1.
In September 2022, in connection with his second campaign for election to the House, Santos filed another House Disclosure, in which he allegedly overstated his income and assets. In this House Disclosure, he falsely certified that during the reporting period:
- He had earned $750,000 in salary from the Devolder Organization LLC, a Florida‑based entity of which Santos was the sole beneficial owner;
- He had received between $1,000,001 and $5,000,000 in dividends from the Devolder Organization LLC;
- He had a checking account with deposits of between $100,001 and $250,000; and
- He had a savings account with deposits of between $1,000,001 and $5,000,000.
As alleged in the indictment, these assertions were false: Santos had not received from the Devolder Organization LLC the reported amounts of salary or dividends and did not maintain checking or savings accounts with deposits in the reported amounts. Further, Santos allegedly failed to disclose that, in 2021, he received approximately $28,000 in income from Investment Firm #1 and more than $20,000 in unemployment insurance benefits from the NYS DOL.
The charges in the indictment are merely allegations, and the defendant is presumed innocent unless and until proven guilty. If convicted of the charges, Santos faces a maximum penalty of 20 years in prison for the top counts. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI is investigating the case with assistance from the Nassau County District Attorney’s Office, the IRS-Criminal Investigation, and the U.S. Department of Labor, Office of Inspector General.
The government’s case is being prosecuted by the Office’s Public Integrity Section, the Long Island Criminal Division, and the Criminal Division’s Public Integrity Section. Assistant United States Attorneys Ryan Harris, Anthony Bagnuola, and Laura Zuckerwise, along with Trial Attorneys Jolee Porter and Jacob Steiner, are in charge of the prosecution with assistance from Paralegal Specialist Rachel Friedman. Senior Litigation Counsel Victor R. Salgado of the Criminal Division’s Public Integrity Section provided substantial contributions to the prosecution.
The Defendant:
GEORGE ANTHONY DEVOLDER SANTOS
Age: 34
Washington, District of ColumbiaE.D.N.Y. Docket No. 23-CR-197
Министерство Юстиции Сша Объявляет О Санкционированном Судом Пресечении Деятельности Вредоносной Сети «snake», Контролируемой Федеральной Службой Безопасности РоссииRead the Press Release
БРУКЛИН, НЬЮ-ЙОРК – Сегодня, Министерство юстиции США объявило о завершении санкционированной судом операции под кодовым названием «МЕДУЗА» по пресечению деятельности глобальной одноранговой сети компьютеров, зараженных высокотехнологичным вредоносным ПО под названием «Snake», которое правительство Соединенных Штатов связывает с подразделением в Центре 16 Федеральной службы безопасности Российской Федерации (ФСБ). На протяжении почти 20 лет данное подразделение, упоминаемое в судебных документах как «Турла», использовало версии вредоносного ПО «Snake» для хищения конфиденциальных документов в, по крайней мере 50 странах, из сотен компьютерных систем, принадлежащих правительствам стран-членов Организации Североатлантического договора (НАТО), журналистам и другим объектам внимания представляющих интерес для Российской Федерации. После хищения данных документов, «Турла» извлекала их через негласную сеть компьютеров в Соединенных Штатах и по всему миру, заражённых ПО «Snake» без ведома их владельцев.
В результате операции «MEDUSA» вредоносное ПО «Turla Snake» на заражённых компьютерах было отключено с помощью созданного ФБР инструмента под названием «PERSEUS», который давал команды, заставившие вредоносное ПО «Snake» перезаписать собственные ключевые компоненты. На территории США операция была проведена ФБР в соответствии с ордером на обыск, выданным федеральным судьей-магистратом Восточного округа Нью-Йорка Шерил Л. Поллак, санкционировавшим удаленный доступ к заражённым компьютерам. Сегодня утром, суд разгласил отредактированные версии письменного показания под присягой, представленного в обоснование ходатайства о выдаче ордера на обыск, и самого ордера на обыск, выданного судом. В целях содействия потерпевшим за пределами Соединенных Штатов, ФБР взаимодействует с местными властями, как предоставляя уведомления о заражениях ПО «Snake» так и рекомендации по принятию корректировочных мер, в странах под юрисдикцией местных властей.
Меррик Б. Гарланд, Генеральный прокурор США; Брион Пис, федеральный прокурор США по Восточному округу Нью-Йорка; Лиза О. Монако, заместитель Генерального прокурора США, Министерство юстиции США и Майкл Д. Дрисколл, заместитель директора-начальник Нью-Йоркского регионального отделения ФБР, объявили о данной операции.
«Министерство юстиции вместе с нашими международными партнерами ликвидировало глобальную сеть зараженных вредоносным ПО компьютеров, которую российское правительство использовало в течение почти двух десятилетий для ведения кибершпионажа, в том числе против наших союзников по НАТО», — заявил Генеральный прокурор Гарланд. «Мы будем продолжать укреплять нашу коллективную оборону против дестабилизирующей деятельности российского режима по подрыву безопасности Соединенных Штатов и наших союзников».
«Россия использовала высокотехнологичное вредоносное ПО для хищения конфиденциальной информации у наших союзников, маскируя её пропуском через сеть зараженных компьютеров в Соединенных Штатах, цинично пытаясь скрыть свои преступления. Ответ на угрозу кибершпионажа требует творческого подхода и готовности использовать все законные средства для защиты нашей страны и наших союзников», — заявил федеральный прокурор США Пис. «Санкционированные судом обыск и работы по устранению последствий заражения, проведенные в удаленном режиме и объявленные сегодня, демонстрируют приверженность моего Управления и наших партнеров к использованию всех инструментов, имеющихся в нашем распоряжении, для защиты американского народа».
«Благодаря высокотехнологичной операции, которая обратила российское вредоносное ПО против себя, правоохранительные органы США нейтрализовали один из российских инструментов кибершпионажа высочайшего уровня, применяемого в течение двух десятилетий для продвижения авторитарных целей России», — заявила заместитель Генерального прокурора Лиза Монако. «Сочетая эту операцию с обнародованием информации, необходимой потерпевшим для самозащиты, Министерство юстиции продолжает ставить потерпевших в центр внимания в нашей работе по борьбе с киберпреступностью и активно сражаться со злоумышленниками в киберпространстве».
«Операция, о которой мы сегодня объявили, успешно пресекла деятельность ведущего инструмента кибершпионажа российского правительства. В течение двух десятилетий вредоносное ПО позволяло российской разведке заражать компьютерные системы и похищать конфиденциальную информацию, нанося ущерб не только правительству США и нашим союзникам, но и частному сектору. Это должно послужить напоминанием России и любой другой враждебной стране, готовой похищать информацию, что ФБР и наши партнеры сполчены в наших усилиях по защите наших стран», – заявил заместитель директора-начальник Нью-Йоркского регионального отделения ФБР Дрисколл.
Как подробно описано в судебных документах, правительство США уже почти 20 лет расследует вредоносное ПО «Snake» и связанные со «Snake» инструменты. Государственные органы США следят за сотрудниками ФСБ, прикомандированными к «Турла» и проводящими ежедневные операции с применением «Snake» с установленного объекта ФСБ в городе Рязань, РФ.
Хотя ПО «Snake» было предметом нескольких отчетов в области кибербезопасности на протяжении всего своего существования, «Turla» осуществляла многочисленные обновления и редакции, и выборочно применяла его с тем чтобы ПО «Snake» оставалось самым высокотехнологичным долгосрочным внедрением вредоносного ПО, применяемым ФСБ в кибершпионаже. В случае непресечения его деятельности, внедрение ПО «Snake» на зараженных компьютерах, сохраняется в системе на неопределенное время, как правило, оставаясь незамеченным владельцем компьютера или его авторизованными пользователями. По наблюдениям ФБР, ПО «Snake» остается на некоторых компьютерах, несмотря на усилия потерпевшего по устранению заражения.
ПО «Snake» даёт операторам «Турла» возможность удаленного применения отдельных вредоносных программ для расширения функциональности «Snake» в целях выявления и хищения конфиденциальной информации и документов, хранящихся на определенных компьютерах. Прежде всего, набор зараженных «Snake» компьютеров по всему миру, действует как негласная одноранговая сеть, применяющая оптимизированные протоколы передачи данных, предназначенные для препятствования мониторингу и сбору данных, службами радиотехнической разведки Западных и иных стран.
Для маршрутизации данных, извлеченных из целевых систем для передачи операторам «Turla» в России, через многочисленные ретрансляционные узлы, разбросанные по всему миру, «Турла» использует сеть «Snake». Например, ФБР и партнеры ФБР из разведывательного сообщества США, совместно с государственными органами стран-союзников, следили за использованием ФСБ сети «Snake» для извлечения данных из конфиденциальных компьютерных систем, в том числе, систем применяемых правительствами стран-членов НАТО, путем маршрутизации этих данных через компьютеры, зараженные «Snake» в США, без ведома их владельцев.
Как описано в судебных документах, с помощью анализа вредоносной программы «Snake» и сети «Snake», ФБР разработало метод расшифровывания и декодирования обмена информацией в сети «Snake». Используя информацию, собранную посредством наблюдения за сетью «Snake» и анализа вредоносного ПО «Snake», ФБР разработало инструмент под названием «PERSEUS», который устанавливает сеансы связи с внедрением вредоносного ПО «Snake» на определенном компьютере. Впоследствии, «PERSEUS» выдает команды, вызывающие самостоятельное отключение внедрения «Snake» без причинения ущерба самому компьютеру или легитимным программам, установленным на компьютере.
Сегодня, для поддержки сетевых защитников по всему миру, ФБР, Агентство национальной безопасности, Агентство по кибербезопасности и защите инфраструктуры, Национальная миссия по кибербезопасности при Киберкомандовании США, и шесть других спецслужб и агенств по кибербезопасности каждой из стран-участников альянса «Пять глаз», опубликовали совместную рекомендацию по кибербезопасности («Совместная рекомендация»), содержащую подробную техническую информацию о вредоносном ПО «Snake», которую специалисты по кибербезопасности смогут применять для идентификации и защиты от новых заражений вредоносным ПО «Snake» в их сетях. С Совместной рекомендацией можно ознакомиться здесь. ФБР и Государственный департамент США также предоставляют дополнительную информацию местным властям в странах, где были обнаружены компьютеры, подвергшиеся заражению вредоносным ПО «Snake».
Несмотря на то, что операция «MEDUSA» отключила вредоносное ПО «Snake» на заражённых компьютерах, пострадавшим следует принять дополнительные меры для предотвращения дальнейшего ущерба. Операция по отключению «Snake» не устранила уязвимости, не искала и не удаляла какие-либо другие вредоносные программы или средства взлома, которые группы хакеров могли разместить в сетях пострадавших. Министерство юстиции настоятельно призывает сетевых защитников ознакомиться с Совместной рекомендацией для получения дальнейших указаний по обнаружению уязвимостей и установлению корректировочных патч-файлов. Более того, как отмечалось в судебных документах, «Турла» часто использует «кейлоггер» вместе со «Snake», который «Турла» может использовать для хищения учетных данных, например, имен пользователей и паролей легитимных пользователей. Потерпевшим следует знать, что «Турла» может использовать эти похищенные учетные данные для восстановления доступа к зараженным компьютерам и другим учетным записям мошенническим путем.
ФБР уведомляет всех владельцев или операторов компьютеров, доступ к которым был произведен в удаленном режиме в соответствии с ордером на обыск, о проведении санкционированной судом операции.
Уголовное расследование использования вредоносного ПО «Snake» ФСБ проводит Управление прокуратуры по национальной безопасности и Управление прокуратуры по борьбе с киберпреступностью. Заместитель федерального прокурора Иэн Ричардсон отвечает за расследование, при содействии Отдела контрразведки и экспортного контроля Управления по национальной безопасности.
Меры по пресечению работы сети вредоносного ПО «Snake» были осуществлены под руководством Нью-Йоркского регионального управления ФБР, Управлением ФБР по борьбе с киберпреступностью, Федеральной прокуратурой США по Восточному округу Нью-Йорка и Отделом контрразведки и экспортного контроля Управления по национальной безопасности. Содействие было также оказано Отделом по компьютерным преступлениям и интеллектуальной собственности Управления по борьбе с уголовной преступностью.
Эти усилия не увенчались бы успехом без сотрудничества многочисленных структур частного сектора, включая тех потерпевших, которые позволили ФБР наблюдать за потоком информации «Snake» в своих системах.
Ордер на обыск:
Относительно поиска информации, связанной с компьютерами, составляющими сеть вредоносного программного обеспечения «Snake».
Реестр Восточного округа Нью-Йорка № 23-MJ-0428 (CLP)
Leader of Queens-Based "Wood City" Gang Convicted of Revenge Killing over Stolen NecklaceRead the Press Release
A federal jury in Brooklyn returned a guilty verdict late yesterday afternoon against Christopher Acevedo, the leader of “Wood City,” a violent criminal enterprise which also used the names “Yellow Tape Boyz” and “YTB,” of murder in-aid-of racketeering and causing death through the use of a firearm in connection with the August 26, 2019 fatal shooting of a rival gang associate. The verdict followed a three-week trial before United States District Judge Diane Gujarati. When sentenced, Acevedo faces a mandatory term of life imprisonment.
Breon Peace, United States Attorney for the Eastern District of New York, announced the verdict.
“How senseless it was for Acevedo to callously take a human life 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. “With today’s verdict, the defendant will spend the rest of his life in prison. Protecting our communities from gang and gun-related violence is a priority of my Office and I commend the attorneys, Special Agents, and detectives whose work brought the defendant to justice.”
Mr. Peace thanked the Federal Bureau of Investigation, New York Field Office, and the New York City Police Department for their exemplary investigative work on the case. Mr. Peace also thanked the FBI Safe Streets Task Force for its assistance with the case.
The evidence at trial established that 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, New York. 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. The defendant 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.
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 James P. McDonald, Kayla C. Bensing, and Benjamin Weintraub are in charge of the prosecution with the assistance of Paralegal Specialist Brittany Wissel.
The Defendant:
CHRISTOPHER ACEVEDO
Age: 28
Jamaica, New YorkE.D.N.Y. Docket No. 21-CR-162 (DG)
Justice Department Announces Court-Authorized Disruption of the Snake Malware Network Controlled by Russia's Federal Security ServiceRead the Press Release
The Justice Department today announced the completion of a court-authorized operation, codenamed MEDUSA, to disrupt a global peer-to-peer network of computers compromised by sophisticated malware, called “Snake,” that the United States Government attributes to a unit within Center 16 of the Federal Security Service of the Russian Federation (FSB). For nearly 20 years, this unit, referred to in court documents as “Turla,” has used versions of the Snake malware to steal sensitive documents from hundreds of computer systems in at least 50 countries, which have belonged to North Atlantic Treaty Organization (NATO) member governments, journalists, and other targets of interest to the Russian Federation. After stealing these documents, Turla exfiltrated them through a covert network of unwitting Snake-compromised computers in the United States and around the world.
Operation MEDUSA disabled Turla’s Snake malware on compromised computers through the use of an FBI-created tool named PERSEUS, which issued commands that caused the Snake malware to overwrite its own vital components. Within the United States, the operation was executed by the FBI pursuant to a search warrant issued by United States Magistrate Judge Cheryl L. Pollak of the Eastern District of New York, which authorized remote access to the compromised computers. This morning, the Court unsealed redacted versions of the affidavit submitted in support of the application for the search warrant, and of the search warrant issued by the Court. For victims outside the United States, the FBI is engaging with local authorities to provide both notice of Snake infections within those authorities’ countries and remediation guidance.
Merrick B. Garland, United States Attorney General; Breon Peace, United States Attorney for the Eastern District of New York; Lisa O. Monaco, Deputy Attorney General of the Justice Department; and Michael J. Driscoll, Assistant Director-in-Charge, FBI, New York Field Office, announced the operation.
“The Justice Department, together with our international partners, has dismantled a global network of malware-infected computers that the Russian government has used for nearly two decades to conduct cyber-espionage, including against our NATO allies,” stated Attorney General Garland. “We will continue to strengthen our collective defenses against the Russian regime’s destabilizing efforts to undermine the security of the United States and our allies.”
“Russia used sophisticated malware to steal sensitive information from our allies, laundering it through a network of infected computers in the United States in a cynical attempt to conceal their crimes. Meeting the challenge of cyberespionage requires creativity and a willingness to use all lawful means to protect our nation and our allies,” stated United States Attorney Peace. “The court-authorized remote search and remediation announced today demonstrates my Office and our partners’ commitment to using all of the tools at our disposal to protect the American people.”
“Through a high-tech operation that turned Russian malware against itself, U.S. law enforcement has neutralized one of Russia’s most sophisticated cyber-espionage tools, used for two decades to advance Russia’s authoritarian objectives,” stated Deputy Attorney General Monaco. “By combining this action with the release of the information victims need to protect themselves, the Justice Department continues to put victims at the center of our cybercrime work and take the fight to malicious cyber actors.”
“The operation we announced today successfully disrupted the foremost cyber espionage tool of the Russian government. For two decades, the malware allowed Russian Intelligence to compromise computer systems and steal sensitive information - harming not only the United States Government and our allies but also private sector organizations. This action should serve as a reminder to Russia and any other hostile nation willing to steal information, the FBI and our partners are united in our efforts to protect our countries,” stated FBI Assistant Director-in-Charge Driscoll.
“For 20 years, the FSB has relied on the Snake malware to conduct cyberespionage against the United States and our allies – that ends today,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “The Justice Department will use every weapon in our arsenal to combat Russia’s malicious cyber activity, including neutralizing malware through high-tech operations, making innovative use of legal authorities, and working with international allies and private sector partners to amplify our collective impact.”
As detailed in court documents, the U.S. government has been investigating Snake and Snake-related malware tools for nearly 20 years. The U.S. government has monitored FSB officers assigned to Turla conducting daily operations using Snake from a known FSB facility in Ryazan, Russia.
Although Snake has been the subject to several cybersecurity industry reports throughout its existence, Turla has applied numerous upgrades and revisions, and selectively deployed it, all to ensure that Snake remains the FSB’s most sophisticated long-term cyberespionage malware implant. Unless disrupted, the Snake implant persists on a compromised computer’s system indefinitely, typically undetected by the machine’s owner or authorized users. The FBI has observed Snake persist on particular computers despite a victim’s efforts to remediate the compromise.
Snake provides its Turla operators the ability to remotely deploy selected malware tools to extend Snake’s functionality to identify and steal sensitive information and documents stored on a particular machine. Most importantly, the worldwide collection of Snake-compromised computers acts as a covert peer-to-peer network, which utilizes customized communication protocols designed to hamper detection, monitoring, and collection efforts by Western and other signals intelligence services.
Turla uses the Snake network to route data exfiltrated from target systems through numerous relay nodes scattered around the world back to Turla operators in Russia. For example, the FBI, its partners in the U.S. Intelligence Community, together with allied foreign governments, have monitored the FSB’s use of the Snake network to exfiltrate data from sensitive computer systems, including those operated by NATO member governments, by routing the transmission of these stolen data through unwitting Snake-compromised computers in the United States.
As described in court documents, through analysis of the Snake malware and the Snake network, the FBI developed the capability to decrypt and decode Snake communications. With information gleaned from monitoring the Snake network and analyzing Snake malware, the FBI developed a tool, named PERSEUS, that establishes communication sessions with the Snake malware implant on a particular computer, and issues commands that causes the Snake implant to disable itself without affecting the host computer or legitimate applications on the computer.
Today, to empower network defenders worldwide, the FBI, the National Security Agency, the Cybersecurity and Infrastructure Security Agency, the U.S. Cyber Command Cyber National Mission Force, and six other intelligence and cybersecurity agencies from each of the Five Eyes member nations, issued a joint cybersecurity advisory (the “Joint Advisory”) with detailed technical information about the Snake malware that will allow cybersecurity professionals to detect and remediate Snake malware infections on their networks. The Joint Advisory is available here. The FBI and U.S. Department of State are also providing additional information to local authorities in countries where computers that have been targeted by the Snake malware have been located.
Although Operation MEDUSA disabled the Snake malware on compromised computers, victims should take additional steps to protect themselves from further harm. The operation to disable Snake did not patch any vulnerabilities or search for or remove any additional malware or hacking tools that hacking groups may have placed on victim networks. The Department of Justice strongly encourages network defenders to review the Joint Advisory for further guidance on detection and patching. Moreover, as noted in court documents, Turla frequently deploys a “keylogger” with Snake that Turla can use to steal account authentication credentials, such as usernames and passwords, from legitimate users. Victims should be aware that Turla could use these stolen credentials to fraudulently re-access compromised computers and other accounts.
The FBI is providing notice of the court-authorized operation to all owners or operators of the computers remotely accessed pursuant to the search warrant.
The criminal investigation into the FSB’s use of the Snake malware is being handled by the Office’s National Security and Cybercrime Section. Assistant United States Attorney Ian C. Richardson is in charge of the investigation, with assistance from the National Security Division’s Counterintelligence and Export Control Section.
The efforts to disrupt the Snake malware network were led by the FBI’s New York Field Office, FBI’s Cyber Division, the U.S. Attorney’s Office for the Eastern District of New York, and the National Security Division’s Counterintelligence and Export Control Section. Assistance was also provided by the Criminal Division’s Computer Crime and Intellectual Property Section.
Those efforts would not have been successful without the partnership of numerous private-sector entities, including those victims who allowed the FBI to monitor Snake communications on their systems.
The Search Warrant:
In the Matter of the Search of Information Associated with Computers Constituting the Snake Malware Network
Eastern District of New York Docket No. 23-MJ-0428 (CLP)
Justice Department Announces Court-Authorized Disruption of Snake Malware Network Controlled by Russia’s Federal Security ServiceRead the Press Release
The Justice Department today announced the completion of a court-authorized operation, code-named MEDUSA, to disrupt a global peer-to-peer network of computers compromised by sophisticated malware, called “Snake”, that the U.S. Government attributes to a unit within Center 16 of the Federal Security Service of the Russian Federation (FSB). For nearly 20 years, this unit, referred to in court documents as “Turla,” has used versions of the Snake malware to steal sensitive documents from hundreds of computer systems in at least 50 countries, which have belonged to North Atlantic Treaty Organization (NATO) member governments, journalists, and other targets of interest to the Russian Federation. After stealing these documents, Turla exfiltrated them through a covert network of unwitting Snake-compromised computers in the United States and around the world.
Operation MEDUSA disabled Turla’s Snake malware on compromised computers through the use of an FBI-created tool named PERSEUS, which issued commands that caused the Snake malware to overwrite its own vital components. Within the United States, the operation was executed by the FBI pursuant to a search warrant issued by U.S. Magistrate Judge Cheryl L. Pollak for the Eastern District of New York, which authorized remote access to the compromised computers. This morning, the court unsealed redacted versions of the affidavit submitted in support of the application for the search warrant, and of the search warrant issued by the court. For victims outside the United States, the FBI is engaging with local authorities to provide both notice of Snake infections within those authorities’ countries and remediation guidance.
“The Justice Department, together with our international partners, has dismantled a global network of malware-infected computers that the Russian government has used for nearly two decades to conduct cyber-espionage, including against our NATO allies,” said Attorney General Merrick B. Garland. “We will continue to strengthen our collective defenses against the Russian regime’s destabilizing efforts to undermine the security of the United States and our allies.”
“Through a high-tech operation that turned Russian malware against itself, U.S. law enforcement has neutralized one of Russia’s most sophisticated cyber-espionage tools, used for two decades to advance Russia’s authoritarian objectives,” said Deputy Attorney General Lisa O. Monaco. “By combining this action with the release of the information victims need to protect themselves, the Justice Department continues to put victims at the center of our cybercrime work and take the fight to malicious cyber actors.”
“For 20 years, the FSB has relied on the Snake malware to conduct cyberespionage against the United States and our allies – that ends today,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “The Justice Department will use every weapon in our arsenal to combat Russia’s malicious cyber activity, including neutralizing malware through high-tech operations, making innovative use of legal authorities, and working with international allies and private sector partners to amplify our collective impact.”
“Russia used sophisticated malware to steal sensitive information from our allies, laundering it through a network of infected computers in the United States in a cynical attempt to conceal their crimes. Meeting the challenge of cyberespionage requires creativity and a willingness to use all lawful means to protect our nation and our allies,” said U.S. Attorney Breon Peace for the Eastern District of New York. “The court-authorized remote search and remediation announced today demonstrates my office and our partners’ commitment to using all of the tools at our disposal to protect the American people.”
“Today’s announcement demonstrates the FBI’s willingness and ability to pair our authorities and technical capabilities with those of our global partners to disrupt malicious cyber actors,” said Assistant Director Bryan Vorndran of the FBI’s Cyber Division. “When it comes to combating Russia’s attempts to target the United States and our allies using complex cyber tools, we will not waver in our work to dismantle those efforts. When it comes to any nation state engaged in cyber intrusions which put our national security at risk, the FBI will leverage all tools available to impose cost on those actors and to protect the American people.”
As detailed in court documents, the U.S. Government has been investigating Snake and Snake-related malware tools for nearly 20 years. The U.S. government has monitored FSB officers assigned to Turla conducting daily operations using Snake from a known FSB facility in Ryazan, Russia.
Although Snake has been the subject to several cybersecurity industry reports throughout its existence, Turla has applied numerous upgrades and revisions, and selectively deployed it, all to ensure that Snake remains Turla’s most sophisticated long-term cyberespionage malware implant. Unless disrupted, the Snake implant persists on a compromised computer’s system indefinitely, typically undetected by the machine’s owner or authorized users. The FBI has observed Snake persist on particular computers despite a victim’s efforts to remediate the compromise.
Snake provides its Turla operators the ability to remotely deploy selected malware tools to extend Snake’s functionality to identify and steal sensitive information and documents stored on a particular machine. Most importantly, the worldwide collection of Snake-compromised computers acts as a covert peer-to-peer network, which utilizes customized communication protocols designed to hamper detection, monitoring, and collection efforts by Western and other signals intelligence services.
Turla uses the Snake network to route data exfiltrated from target systems through numerous relay nodes scattered around the world back to Turla operators in Russia. For example, the FBI, its partners in the U.S. Intelligence Community, together with allied foreign governments, have monitored the FSB’s use of the Snake network to exfiltrate data from sensitive computer systems, including those operated by NATO member governments, by routing the transmission of these stolen data through unwitting Snake-compromised computers in the United States.
As described in court documents, through analysis of the Snake malware and the Snake network, the FBI developed the capability to decrypt and decode Snake communications. With information gleaned from monitoring the Snake network and analyzing Snake malware, the FBI developed a tool named PERSEUS which establishes communication sessions with the Snake malware implant on a particular computer, and issues commands that causes the Snake implant to disable itself without affecting the host computer or legitimate applications on the computer.
Today, to empower network defenders worldwide, the FBI, the National Security Agency, the Cybersecurity and Infrastructure Security Agency, the U.S. Cyber Command Cyber National Mission Force, and six other intelligence and cybersecurity agencies from each of the Five Eyes member nations issued a joint cybersecurity advisory (the Joint Advisory) with detailed technical information about the Snake malware that will allow cybersecurity professionals to detect and remediate Snake malware infections on their networks. The FBI and U.S. Department of State are also providing additional information to local authorities in countries where computers that have been targeted by the Snake malware have been located.
Although Operation MEDUSA disabled the Snake malware on compromised computers, victims should take additional steps to protect themselves from further harm. The operation to disable Snake did not patch any vulnerabilities or search for or remove any additional malware or hacking tools that hacking groups may have placed on victim. The Department of Justice strongly encourages network defenders to review the Joint Advisory for further guidance on detection and patching. Moreover, as noted in court documents, Turla frequently deploys a “keylogger” with Snake that Turla can use to steal account authentication credentials, such as usernames and passwords, from legitimate users. Victims should be aware that Turla could use these stolen credentials to fraudulently re-access compromised computers and other accounts.
The FBI has provided notice of the court-authorized operation to all owners or operators of the computers remotely accessed pursuant to the search warrant.
Assistant U.S. Attorney Ian C. Richardson for the Eastern District of New York is prosecuting the case, with valuable assistance provided by the National Security Division’s Counterintelligence and Export Control Section.
The efforts to disrupt the Snake malware network were led by the FBI New York Field Office, FBI’s Cyber Division, the U.S. Attorney’s Office for the Eastern District of New York, and the National Security Division’s Counterintelligence and Export Control Section. The Criminal Division’s Computer Crime and Intellectual Property Section provided valuable assistance. Those efforts would not have been successful without the partnership of numerous private-sector entities, including those victims who allowed the FBI to monitor Snake communications on their systems.
NYPD Officer Convicted of Possession and Attempted Receipt of Child Pornography and Sexual Exploitation of MinorsRead the Press Release
Timothy Martinez was convicted today by a federal jury in Brooklyn of all four counts of a superseding indictment charging him with attempted receipt of child pornography, possession of child pornography, and two counts of sexual exploitation and attempted sexual exploitation of a minor. The verdict followed a one-week trial before United States District Judge Frederic Block. Martinez is employed as a police officer by the New York City Police Department, and immediately prior to his arrest, was on active duty in the U.S. Army Reserve. When sentenced, Martinez faces a mandatory minimum of 15 years in prison.
Breon Peace, United States Attorney for the Eastern District of New York, Ivan J. Arvelo, Special Agent-in-Charge, Homeland Security Investigations, New York, and Keechant L. Sewell, Commissioner, New York City Police Department (NYPD), announced the verdict.
“The jury found that the defendant not only violated the trust of the public that he was sworn to serve but specifically victimized vulnerable children for years. Instead of using his position as a member of the NYPD to protect children, he shamefully gained the trust of minors in order to sexually exploit them,” stated United States Attorney Peace. “Protecting children from sexual exploitation will always be a priority of this Office. I commend the prosecutors and investigators for their outstanding work removing this predator from patrolling the streets and from our district.”
“When he swore his oath as a police officer, Timothy Martinez was entrusted to enforce the law and protect the innocent. Instead of upholding his oath, Martinez preyed on the young, turning innocent children into victims,” said HSI New York Special Agent-in-Charge Ivan J. Arvelo. “Our elation at this verdict is tempered by the pain and suffering these young victims endured as a result of this predator’s criminal actions. Those in positions of public trust are held to a higher standard as guardians of the innocent and HSI New York will continue to utilize every resource at our disposal to protect children from those who seek to do them harm.”
“Our police officers have a sworn duty to protect, but this defendant betrayed that oath and preyed upon some of the most at-risk members of our community,” stated NYPD Commissioner Sewell. “Such reprehensible behavior is wholly unacceptable of anyone, especially a member of law enforcement. I commend and thank Homeland Security Investigations and the U.S. Attorney for the Eastern District of New York for their important work on this case.”
As proven at trial, between October 2016 and March 2017, Martinez engaged in live video sex chats with Jane Doe #1, who had been treated for a brain tumor, and he convinced her to perform sexual acts. Additionally, between September 3, 2012 and November 2016, the defendant engaged in live video sex chats with Jane Doe #2 and he similarly convinced her to show him her nude body and engage in sex acts even after she disclosed that she had been sexually abused by family members. Martinez also possessed hundreds of images of child pornography. In June 2018, the defendant attempted to receive numerous videos of child pornography from an individual he believed to be a minor.
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 handled by the Office’s General Crimes Section. Assistant United States Attorneys William P. Campos, Marietou Diouf, and Chand W. Edwards-Balfour are in charge of the prosecution with the assistance of Paralegal Specialist Allison Henry.
The Defendant:
TIMOTHY MARTINEZ
Age: 43
Staten Island, New YorkE.D.N.Y. Docket No. 20-CR-98 (S-2) (FB)
Long Island Man Pleads Guilty to Bribing Federal Official to Obtain Nearly $1 Million in Federal ContractsRead the Press Release
Earlier today, in federal court in Central Islip, Michael Montenes, the owner of M.S. Hi-Tech, Incorporated (MSHT), a Hauppauge-based distributor of electronic components, pleaded guilty to a criminal information charging him with bribery of a federal official in connection with a scheme to pay more than $18,000 to a Department of Energy (DOE) Procurement Officer in exchange for approximately $969,000 in DOE contracts. The proceeding was held before United States Magistrate Judge Steven L. Tiscione. When sentenced, Montenes faces up to 15 years in prison. As part of his guilty plea, Montenes agreed to forfeit approximately $969,000 and to pay DOE more than $1.8 million in restitution.
Breon Peace, United States Attorney for the Eastern District of New York, and Teri L. Donaldson, Department of Energy Inspector General, announced the guilty plea.
“Like the faulty components that he bribed a government official to purchase and caused damage to a Department of Energy laboratory, Montenes’s scheme has gone down in flames and he must now face the consequences for his crime,” stated United States Attorney Peace. “This Office will continue to root out corruption that undermines the integrity of competitive bidding in the procurement process.”
Mr. Peace thanked the U.S. Department of Defense, Defense Criminal Investigative Service, for its work on the case.
“The Department of Energy, Office of Inspector General will continue to ensure that there is no place in our supply chain for bribery and corrupt schemes,” said Department of Energy Inspector General Teri L. Donaldson. “Anyone who suspects such conduct is encouraged to report it immediately. We appreciate the fine work of the U.S. Attorney’s Office and our federal law enforcement partners on this joint investigation.”
Between approximately December 2017 and December 2020, Montenes paid a Procurement Officer (Co-conspirator 1), who was employed at a DOE laboratory in Virginia approximately $18,800 in bribes to induce Co-conspirator 1 to enter into contracts for electronic components that MSHT, supplied to the DOE’s Virginia laboratory. Montenes mailed these payments, which ranged from $500 to $7,200, from Long Island to Co-conspirator 1 in Virginia. During the bribery scheme, Co-conspirator 1 awarded contracts worth more than $969,000 to MSHT, which represented 95% of all of MSHT’s sales to the DOE’s Virginia laboratory. In July 2021, some of the electronic components that MSHT sold to DOE based upon Montenes’s bribes failed and caused a fire, resulting in approximately $1.8 million in repairs and other costs to DOE.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorney Bradley T. King is in charge of the prosecution.
The Defendants:
Michael Montenes
Age: 61
St. James, New YorkE.D.N.Y. Docket No. 23-CR-124 (JS)
Deputy Attorney General Recognizes Eastern District of New York Assistant U.S. Attorney at Director's Awards CeremonyRead the Press Release
Assistant United States Attorney Layaliza Soloveichik was among those recognized by Deputy Attorney General Lisa Monaco and Director Monty Wilkinson of the Executive Office for U.S. Attorneys (EOUSA), at the 38th Director’s Awards Ceremony today in Washington, D.C. The EDNY was one of the districts represented at the ceremony, which was held in the Great Hall at the Robert F. Kennedy Department of Justice Building.
Breon Peace, United States Attorney for the Eastern District of New York, said: “Congratulations to Layaliza for receiving a Director’s Award for Superior Performance as an Assistant U.S. Attorney. Layaliza’s vision, skill, and tenacity as a litigator and supervisor on behalf of the United States have enhanced the stature of the U.S. Attorney’s Office for the Eastern District of New York and furthered the mission of the Department of Justice.”
EOUSA Director Wilkinson said: “The recipients we honor today have shown remarkable resilience and commitment to justice through challenging times, rising to the occasion with unwavering dedication to their mission. They have worked tirelessly to protect the rights of Americans and exemplify the very best in federal service.”
Assistant United States Attorney (AUSA) Soloveichik was recognized for her exemplary performance in leading the district’s demanding civil immigration and programmatic practices, which consist of more than 1,500 cases. AUSA Soloveichik serves as Deputy Chief of the Civil Division in the Eastern District of New York and previously served as Chief of the Immigration Litigation Unit. She has also successfully managed a host of emergency litigation and programmatic challenges in cutting-edge cases of national significance. AUSA Soloveichik has also taken on leading roles in defending challenges to national policies related to the COVID-19 pandemic as well as long-standing vaccine policies.
EOUSA provides oversight, general executive assistance, and direction to the 94 United States Attorneys’ offices around the country. For more information on EOUSA and its mission, visit http://www.justice.gov/usao. For more information about the United States Attorney’s Office for the Eastern District of New York, visit www.justice.gov/usao/nye.
Cybercriminal Network Fueling the Global Stolen Credit Card Trade is DismantledRead the Press Release
A four-count indictment was unsealed today in the United States District Court for the Eastern District of New York charging Denis Gennadievich Kulkov with access device fraud, computer intrusion and money laundering in connection with his operation of Try2Check, the primary service offering “card-checking” to cybercriminals in the stolen credit card trade.
The Try2Check platform catered to cybercriminals who purchased and sold stolen credit card numbers in bulk on the internet, offering criminals the ability to quickly determine what percentage of the cards were valid and active. As such, Try2Check was a primary enabler of the trade in stolen credit card information, processing at minimum tens of millions of card numbers every year. Today, the U.S. government worked with partners in Germany and Austria to take offline Try2Check’s websites, thus dismantling the defendant’s criminal network. Along with the indictment and global website domain takedown, the State Department has announced a $10 million reward for information leading to the capture of Kulkov, who resides in Russia.
Breon Peace, United States Attorney for the Eastern District of New York and Patrick Freaney, Special Agent-in-Charge, United States Secret Service (USSS), New York Field Office, announced the charges.
“Today is a bad day for criminals who relied on the defendant’s platform as the gold standard to verify that the credit cards they stole from hard working individuals living in the Eastern District of New York and across the world had value,” stated United States Attorney Peace. “Today’s indictment and global takedown of the Try2Check website demonstrates that the Office, together with our partners, will disrupt cybercrime operations no matter where they are based.”
“The individual named in today’s indictment is accused of operating a criminal service with immeasurable reach to fund further illicit activity with global impact,” said U.S. Secret Service Special Agent in Charge Patrick J. Freaney. “Our exceptional partnerships know no borders, and thanks to the cooperation and dedication of our global law enforcement community, Try2Check can no longer serve as a vehicle for continued criminal activity or illicit profits.”
As alleged in the indictment and other court filings, Kulkov created Try2Check in 2005, building it into a primary tool of the illicit credit card trade. Cybercriminals who acquired large batches of stolen credit cards (for example, by hacking into credit card readers at stores) ran the cards through Try2Check to determine what percentage of the stolen credit card numbers remained active. These cybercriminals then used the resulting data to show prospective buyers of the stolen credit card numbers what percentage of the cards retained their value. Try2Check victimized not only credit card issuers and holders, but also a major U.S.-based payment processing company whose systems Try2Check misused to perform the card checks.
Try2Check ran tens of millions of credit card checks per year and supported the operations of major card shops that made hundreds of millions in bitcoin in profits. Over a nine-month period in 2018, the site performed at least 16 million checks, and over a 13-month period beginning in September 2021, the site performed at least 17 million checks. Through the illegal operation of his websites, the defendant made at least $18 million in bitcoin (as well as an unknown amount through other payment systems), which he used to purchase a Ferrari, among other luxury items.
In coordination with the unsealing of the charging documents in this case, Try2Check’s websites were taken offline and the State Department issued a $10 million reward for information leading to the defendant’s capture. If convicted, Kulkov faces 20 years’ imprisonment. The charges in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty.
The Office extends particular thanks to the Justice Department’s Computer Crime and Intellectual Property Section (CCIPS) and to CCIPS Assistant Deputy Chief James Yoon, for his and the Section’s extensive contributions to this case. The U.S. Secret Service New York Field Office investigated this case with crucial assistance from the following Secret Service offices: the Global Investigative Operations Center (GIOC), the Cyber Investigative Section (CIS), Frankfurt, Paris, Madrid, and the Hague. Crucial assistance was also provided by the FBI’s New York Field Office and Cyber Initiative and Resource Fusion Unit (CIRFU) and by Europol and the National Cyber-Forensics Training Alliance (NCFTA). The Department of Justice’s Office of International Affairs is assisting with foreign evidence requests. The Office extends its appreciation to the German Federal Criminal Police Office (BKA), the German Federal Office for Information Security (BSI), the Austrian Criminal Intelligence Service – Cybercrime Competence Center (C4), and the French Central Directorate of the Judicial Police (DCPJ) and the governments of Austria, Germany and France for their assistance on this case, as well as to the Shadowserver Foundation for crucial technical assistance in addressing Try2Check’s technical infrastructure.
If you have information regarding this individual, please contact the U.S. Secret Service at [email protected].
The government’s case is being handled by the Office’s National Security and Cybercrime Section. Assistant United States Attorneys Alexander Mindlin and Sara K. Winik are in charge of the prosecution, with assistance from Assistant United States Attorney Brian Morris.
The Defendant:
DENIS GENNADIEVICH KULKOV, (also known as “Kreenjo,” “Nordex” and “Nordexin”)
Samara, RussiaE.D.N.Y. Docket No. 23-CR-171
Two Pharmacy Owners Charged with $29M Health Care Fraud SchemeRead the Press Release
An indictment was unsealed today in Brooklyn charging two New York men for their alleged participation in a scheme to submit false and fraudulent claims to Medicare and Medicaid for medically unnecessary prescriptions and over-the-counter products that were not actually dispensed, to pay illegal kickbacks and bribes, and to launder the proceeds of their scheme.
According to court documents, Taesung “Terry” Kim, 58, of Purchase, and Dacheng “Bruce” Lu, 44, of Great Neck, partly owned and operated four pharmacies: 888 Pharmacy Inc. and Huikang Pharmacy Inc., located in Brooklyn, and Elmcare Pharmacy Inc. and NY Elm Pharmacy Inc., located in Flushing. Between January 2015 and December 2022, Kim and Lu allegedly conspired with others to submit false and fraudulent claims to Medicare and Medicaid for dispensing pharmaceutical and over-the-counter products that were medically unnecessary, procured by the payment of kickbacks and bribes, or not provided. Further, Kim and Lu allegedly conspired with others who paid illegal kickbacks and bribes, in the form of cash and supermarket gift certificates, to Medicare beneficiaries and Medicaid recipients who filled their prescriptions at their pharmacies. Kim and Lu also conspired with others to pay and paid illegal kickbacks and bribes, in the form of rent and office staff, to the doctors who prescribed the medically unnecessary medications filled at their pharmacies.
Kim and Lu also are alleged to have laundered the proceeds of their fraud through shell entities to generate cash that they could disperse as unrecorded profits to themselves and the pharmacies’ other owners and to pay kickbacks to pharmacy customers. As part of the scheme, Kim and Lu’s pharmacies submitted approximately $29 million in fraudulent claims to Medicare and Medicaid.
Kim and Lu are charged with conspiracy to commit health care fraud, conspiracy to commit money laundering, and conspiracy to pay illegal health care kickbacks and bribes. If convicted, they each face a maximum penalty of 10 years in prison for conspiracy to commit health care fraud, 20 years in prison for conspiracy to commit money laundering, and five years in prison for conspiracy to pay illegal health care kickbacks and bribes.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, U.S. Attorney Breon Peace for the Eastern District of New York, Assistant Director in Charge Michael J. Driscoll of the FBI New York Field Office, and Special Agent in Charge Naomi Gruchacz of the Department of Health and Human Services Office of Inspector General (HHS-OIG) made the announcement.
The FBI and HHS-OIG are investigating the case.
Trial Attorney Patrick J. Campbell and Acting Assistant Chief Miriam Glaser Dauermann of the Criminal Division’s Fraud Section are prosecuting the case.
The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, comprised of 15 strike forces operating in 25 federal districts, has charged more than 5,000 defendants who collectively have billed federal health care programs and private insurers more than $24 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with the Office of the Inspector General for the Department of Health and Human Services, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at https://www.justice.gov/criminal-fraud/health-care-fraud-unit.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Pharmacy Owners Charged with $26 Million Health Care Fraud SchemeRead the Press Release
An indictment was unsealed today in federal court in Brooklyn charging Taesung “Terry” Kim and Dacheng “Bruce” Lu with perpetrating a health care fraud scheme to submit false and fraudulent claims to Medicare and Medicaid for medically unnecessary prescriptions and over-the-counter products that were not actually dispensed, to pay illegal kickbacks and bribes, and to launder the proceeds of their scheme. The defendants were arrested this morning and are scheduled to be arraigned this afternoon before United States Magistrate Judge Cheryl L. Pollak.
Breon Peace, United States Attorney for the Eastern District of New York, Kenneth A. Polite, Jr., Assistant Attorney General of the Justice Department’s Criminal Division, Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Naomi Gruchacz, Special Agent-in-Charge, U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG), announced the arrests and charges.
As set forth in court filings, the defendants owned and operated four pharmacies: 888 Pharmacy Inc. and Huikang Pharmacy Inc., located in Brooklyn, and Elmcare Pharmacy Inc. and NY Elm Pharmacy Inc., located in Queens. Between January 2015 and December 2022, Kim and Lu allegedly conspired with others to submit false and fraudulent claims to Medicare and Medicaid for the dispensing of pharmaceutical and over-the-counter products that were medically unnecessary, procured by the payment of kickbacks and bribes, or not provided. Further, Kim and Lu allegedly conspired with others who paid illegal kickbacks and bribes, in the form of cash and supermarket gift certificates, to Medicare beneficiaries and Medicaid recipients who filled their prescriptions at their pharmacies. Kim and Lu also conspired with others to pay and paid illegal kickbacks and bribes, in the form of rent and office staff, to the doctors who prescribed the medically unnecessary medications filled at their pharmacies.
Kim and Lu allegedly laundered the proceeds of their fraud through shell entities to generate cash that they could disperse as profits to themselves and the pharmacies’ other owners, and to pay pharmacy customers as kickbacks. As part of the scheme, Kim and Lu’s pharmacies submitted approximately $26 million in fraudulent claims to Medicare and Medicaid.
The charges in the indictment are allegations, and the defendants are presumed to be innocent unless and until proven guilty. The defendants each face a maximum penalty of 10 years in prison for conspiracy to commit health care fraud, 20 years in prison for conspiracy to commit money laundering, and five years in prison for conspiracy to pay illegal health care kickbacks and bribes.
Trial Attorney Patrick J. Campbell and Acting Assistant Chief Miriam Glaser Dauermann of the Criminal Division’s Fraud Section are prosecuting the case.
The Defendants:
TAESUNG KIM (also known as “Terry”)
Age: 58
Great Neck, New YorkDACHENG LU (also known as “Bruce”)
Age: 44
Flushing, New YorkE.D.N.Y. Docket Number: 23-CR-191 (ARR)
American Airlines Mechanic Convicted of Conspiring to Import Cocaine Bricks in Compartment Under Cockpit of JetlinerRead the Press Release
UPDATE
The defendant’s conviction for the conduct described in the press release below was vacated by the United States Court of Appeals for the Second Circuit on January 23, 2026. See 20-CR-219 (DLI) ECF No. 169.
Today, a federal jury in Brooklyn convicted Paul Belloisi, an American Airlines mechanic at John F. Kennedy International Airport (JFK Airport), of all three counts of an indictment charging him with conspiring to possess cocaine, conspiring to import cocaine, and importing cocaine. The verdict followed a one-week trial before United States District Judge Dora L. Irizarry. When sentenced, Belloisi faces up to 20 years in prison.
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 Francis J. Russo, Director of Field Operations, U.S. Customs and Border Protection, New York Field Office (CBP), announced the verdict.
“As proven, the defendant was caught red-handed trying to facilitate the smuggling of a large stash of cocaine hidden in an electronics compartment of the aircraft.” stated United States Attorney Peace. “This corrupt airline mechanic not only abused his position of trust and undermined the security of a vital border crossing in our district, but was also willing to potentially endanger the safety of travelers as well as the community.”
“Not only did Belloisi violate the law by conspiring to traffic cocaine into the United States, but he used his trusted position as an American Airlines mechanic at JFK International Airport to facilitate his criminal activity,” said HSI New York Special Agent in Charge Ivan J. Arvelo. “Cocaine addiction is a serious problem throughout the country due in large part to the traffickers who place profit above the safety of others. HSI is committed to working with law enforcement partners to identify, arrest and prosecute those responsible for importing illicit drugs into the United States.”
“This case serves as a great example of collaborative law enforcement efforts to combat international narcotics trafficking conspirators. U.S. Customs and Border Protection thanks our partners at HSI and U.S. Immigration and Customs Enforcement for their continued cooperation,” stated CBP Director of Field Operations Russo.
As proven at trial, on February 4, 2020, American Airlines flight 1349 arrived at JFK Airport’s Terminal 8 from Montego Bay, Jamaica. The aircraft was selected for a routine search by CBP officers from the JFK Airport Anti-Terrorism Contraband Enforcement Team. The officers found 10 bricks of cocaine weighing 25.56 pounds—hidden inside an electronics compartment on the underside of the cockpit. The cocaine was replaced with fake bricks and sprayed with a substance that glows when illuminated with a special light. CBP officers and HSI special agents placed the aircraft under surveillance from a distance and shortly before it was scheduled to take off for its next flight, they observed Belloisi drive up and pull himself inside the electronics compartment. Belloisi was confronted by law enforcement who observed his gloves glowing under the black light indicating he had handled the fake bricks. Belloisi was also carrying an empty tool bag and the lining of his jacket had cutouts sufficiently large enough to hold the bricks. The cocaine found in the aircraft had a street value of approximately $285,000 to $320,000.
The government’s case is being handled by the Office’s International Narcotics & Money Laundering Section. Assistant United States Robert Pollack and Margaret Schierberl are in charge of the prosecution with the assistance of Paralegal Specialist Sophia Cronin.
The Defendant:
PAUL BELLOISI
Age: 55
Hicksville, New YorkE.D.N.Y. Docket No. 20-CR-219 (DLI)
Brooklyn Man Sentenced to 21 Years for Sex TraffickingRead the Press Release
Earlier today, at the federal courthouse in Brooklyn, Joseph Harris, also known as “Luis Santana,” and “Joey Moscato,” was sentenced by United States District Judge LaShann DeArcy Hall to 21 years in prison for sex trafficking multiple victims by force, fraud, and coercion.
Breon Peace, United States Attorney for the Eastern District of New York, Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Keechant L. Sewell, Commissioner, New York City Police Department (NYPD), announced the sentence.
Mr. Peace expressed his appreciation to the Kings County District Attorney’s Office for their assistance in the investigation.
From July 2017 until his arrest in May 2018, Harris used violence and threats of violence, along with abusive and coercive tactics, to compel multiple victims to engage in commercial sex acts for his financial benefit. The defendant’s crimes were uncovered when NYPD officers responded to several 911 calls about girls being held at his apartment in Brooklyn. Inside the apartment, the officers found two of the defendant’s adult victims along with a 16-year-old minor female, and recovered a loaded semi-automatic handgun, a birth certificate for a 17-year-old female, hotel receipts, hand-written instructions written by Harris for posting advertisements for commercial sex, and other items.
The investigation revealed that Harris used force and threats to compel his victims to work in prostitution and give him the money that they were paid. He also punished women who withheld money from him and, in at least on one dispute over money, dragged a victim through a pool of bleach he had poured on the floor. On another occasion, he menaced a victim at gunpoint and posted a photograph of it on his Instagram account. Harris had sexual intercourse with his victims, including underage girls as young as 14, and provided them with drugs including ecstasy, cocaine, marijuana, and pills. The defendant used Backpage.com and social media websites to facilitate his business.
The federal prosecution of the defendant was led by the U.S. Attorney’s Office for the Eastern District of New York and the FBI and NYPD’s Child Exploitation and Human Trafficking Task Force, with substantial assistance from the Kings County District Attorney’s Office.
The government’s case is being handled by the Office’s Civil Rights Unit. Assistant United States Attorneys Lauren Elbert and Erin Reid are in charge of the prosecution.
The Defendant:
JOSEPH HARRIS
Age: 41
Brooklyn, New YorkE.D.N.Y. Docket No. 18-CR-616 (LDH)
Georgia Man Indicted for Scheme to Defraud Elderly Suffolk County Victim of More Than $5 MillionRead the Press Release
Earlier today, a two-count indictment was unsealed in federal court in Central Islip charging Odera Odabi, a resident of Georgia, with conspiring to commit mail fraud, wire fraud and money laundering. Odabi was arrested today in Georgia and made his initial appearance in federal court in Atlanta where he was ordered detained pending trial. Odabi will be arraigned in federal court in Central Islip at a later date.
Breon Peace, United States Attorney for the Eastern District of New York, and Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the arrest and charges.
“Odabi and his co-conspirators callously abused the trust of an elderly victim to line their pockets with millions in stolen cash,” stated United States Attorney Peace. “This Office and our partners will work tirelessly to ensure that those who prey upon some of the most vulnerable members of our community are called to account for their crimes.”
“As alleged, the defendant and his co-conspirators took advantage of an elderly individual, deceiving the victim into sending more than five million dollars, which the schemers used for their own personal benefit. Financial frauds targeting elderly members of our communities are sadly rising at an alarming rate. The FBI is resolute in ensuring those who financially exploit the elderly face the consequences in the criminal justice system,” stated Assistant Director-in-Charge Driscoll.
As alleged in the Indictment and in court filings and proceedings, between approximately April 2020 and December 2021, Odabi and his co-conspirators falsely informed an elderly Suffolk County resident (John Doe) that he needed to send around $5.3 million to various bank accounts in order to obtain a purported “Certificate of Origination” from the International Monetary Fund (IMF) and claim a purported inheritance in Singapore. In fact, the IMF does not issue such Certificates and has posted a warning on its website alerting the public to fraudulent schemes involving purported IMF certificates.
As a result of the false communications, John Doe sent Odabi and his co-conspirators approximately $5.3 million, including approximately $2 million to accounts held in the name of Oh-Dabi Properties, LLC and American Commodity Exchange, Inc., two Georgia-based companies that Odabi operated. Ultimately, Odabi and his co-conspirators stole nearly all of John Doe’s funds to benefit themselves, including through purchases at an Apple Store and Louis Vuitton, except for $197,000 that was frozen by bank officials on suspicion of fraud.
If convicted of the charges in the Indictment, Odabi faces up to a maximum term of 40 years’ imprisonment.
If you or someone you know is a victim of elder fraud, please call the Department of Justice’s National Elder Fraud Hotline at 833–FRAUD–11 (833–372–8311). The U.S. Attorney’s Office for the Eastern District of New York conducts presentations by Assistant U.S. Attorneys about ways to protect yourself and your community against scams, especially those targeting seniors. To request a presentation please email [email protected].
The government’s case is being prosecuted by the Office’s Long Island Criminal Division. Assistant United States Attorney Bradley T. King and Madeline O’Connor are in charge of the prosecution.
The Defendant:
ODERA ODABI (also known as “Chief Odera Odabi”)
Age: 54
Lawrenceville, GeorgiaE.D.N.Y. Docket No. 23-CR-169 (JS)
Former New York City Correction Officer Sentenced to Prison for Accepting Bribes in Exchange for Smuggling Contraband into Rikers IslandRead the Press Release
Earlier today in federal court in Brooklyn, former New York City correction officer Katrina Patterson was sentenced by United States District Judge Carol B. Amon to a year and a day in prison for accepting more than $34,000 in bribe payments in exchange for smuggling contraband into Rikers Island. Patterson was employed by the New York City Department of Correction (DOC) and worked as a correction officer at Rikers Island.
Breon Peace, United States Attorney for the Eastern District of New York, announced the sentence.
Mr. Peace expressed his appreciation to Department of Homeland Security, Homeland Security Investigations, New York Field Office (HSI), New York City Department of Investigation (DOI), and the New York City Police Department (NYPD) for their assistance on the case.
According to court documents and facts presented at today’s sentencing proceeding, Patterson accepted at least $34,090 in bribes from co-conspirators in exchange for Patterson’s smuggling contraband into the Robert N. Davoren Center on Rikers Island for inmate (and co-defendant) Michael Ross. Ross, who was incarcerated on unrelated offenses, arranged for the bribes to be sent to Patterson. DOC subsequently located narcotics and cell phones in Ross’ cell. Law enforcement also recovered Patterson’s text messages, including messages where a co-conspirator told Patterson that some of the contraband would be “4 black joints in 1 paper,” and Patterson responded, “it better be wrapped so many times I don’t want to smell it.” Patterson also discussed with her co-conspirator the need to delete their text messages.
Ross previously pleaded guilty in July 2022 to bribing Patterson and was sentenced today by Judge Amon to 18 months’ imprisonment to run consecutive to the 16 years to life sentence he is serving in state custody for an unrelated conviction.
The government’s case is being handled by Assistant United States Attorney Philip Pilmar in the Office’s Public Integrity Section.
The Defendants:
KATRINA PATTERSON
Age: 32
Jamaica, New YorkE.D.N.Y. Docket No. 22-CR-196 (CBA)
Queens Meat and Poultry Distributor Resolves Claims for Repeated Violations of Federal Food Safety LawsRead the Press Release
Breon Peace, United States Attorney for the Eastern District of New York, announced today that the United States has entered into a consent decree barring USA Halal Foods, Inc., also known as As-Salaam Halal and Fine Foods Wholesale Distributors (USA Halal Foods), and its President, Kashiif Saeed (Saeed), from offering for sale or transporting any misbranded meat or poultry products to the general public.
“Consumers deserve confidence that the food they purchase is properly inspected and safe to eat,” stated United States Attorney Peace. “We have, and will continue, to enforce food safety laws that hold food distributors accountable to the required standards and protect the public from misbranded products.”
The consent decree, approved April 18, 2023 by United States District Judge LaShann DeArcy Hall, requires USA Halal Foods and Saeed to keep records that fully and accurately disclose the offer for sale or transportation or other transactions of meat and poultry products.
The decree also provides for escalating monetary fines if USA Halal Foods violates the Federal Meat Inspection Act (FMIA) and the Poultry Products Inspection Act (PPIA).
The court-ordered relief resolves a lawsuit filed on April 11, 2023. According to the complaint, the government’s claims arose from several investigations conducted by the Food Safety and Inspection Service of the United States Department of Agriculture (FSIS). These investigations revealed that between 2017 and 2022, USA Halal Foods and Saeed repeatedly offered for sale or transportation goat, lamb, beef and chicken products that were misbranded and not federally inspected and passed, and failed to keep and maintain records that fully and accurately disclosed all transactions.
The FMIA and PPIA prohibit the sale, transportation, offer for sale or transportation, or receipt for transportation, in commerce, of meat or meat and poultry products that are misbranded or that have not been inspected and passed by FSIS when inspection is required. Meat and poultry products are “misbranded” under the FMIA and PPIA if, among other things, the products fail to bear a label showing the name and place of business of the manufacturer, packer, or distributor, an accurate statement of the quantity of the contents in terms of weight, measure, or numerical count, and the inspection legend. Businesses that engage in buying, selling, or transporting meat or poultry products must also keep records that fully and accurately disclose their business transactions and afford FSIS access to such records.
This case is being handled by Assistant United States Attorney Kevin Yim from the Office’s Civil Division.
In March 2022, the United States Attorney’s Office for the Eastern District of New York announced a Consumer Protection Team in the Office’s Civil Division. The Consumer Protection Team pursues all appropriate measures to stop culpable entities and individuals that engage in conduct threatening the health, safety, economic security, or dignity of potentially vulnerable individuals. For more information on the U.S. Attorney’s Office, or to report suspected consumer fraud, please visit https://www.justice.gov/usao-edny.
The Defendants:
USA HALAL FOODS, INC.
KASHIIF SAEED
E.D.N.Y. Docket No. 23-CV-2689 (LDH)
Member of 5-9 Brims Gang Convicted of Brooklyn MurderRead the Press Release
A federal jury in Brooklyn returned a guilty verdict today against Marvin Pippins, also known as “Mukk,” a member of the Brooklyn-based street gang 5-9 Brims, on counts of racketeering conspiracy, murder-in-aid-of racketeering, murder conspiracy, narcotics trafficking and use of a firearm. The verdict followed a two-week trial before United States District Judge Pamela K. Chen. When sentenced, Pippins faces a mandatory term of life imprisonment.
Breon Peace, United States Attorney for the Eastern District of New York, announced the verdict.
Mr. Peace expressed his thanks to the Federal Bureau of Investigation, New York Field Office, the Bureau of Alcohol, Tobacco, Firearms & Explosives, New York Division, and the New York City Police Department for their outstanding investigative work and dedication.
“As found by the jury, Pippins brazenly committed a gang-related murder with a gun, in broad daylight in Brooklyn, taking another human’s life on behalf of his criminal enterprise which also trafficked drugs and perpetrated fraud in our community,” stated United States Attorney Peace. “Pippins will now face very serious consequences for a brutal crime that was motivated by a senseless feud with rivals. Today’s verdict demonstrates the commitment of this Office and our law enforcement partners to dismantle violent gangs that threaten the safety of our communities.”
The evidence at trial established that between January 2012 and December 2019, Pippins and other members and associates of the 5-9 Brims engaged in drug trafficking and fraud, and committed acts of violence, including murder. Pippins sold crack and cocaine and committed numerous financial frauds, including possession and use of stolen identities, fraudulent checks and access devices such as credit cards and bank account information.
During this time period, the 5-9 Brims were feuding with a rival faction, known as “Real Ryte,” whose members also operated in Brooklyn. On December 19, 2015, Pippins killed Sean Peart, a Real Ryte member, by shooting at him six times while Peart sat in a car in Bedford Stuyvesant, Brooklyn.
The government’s case is being handled by the Office’s Organized Crime and Gangs Section. Assistant U.S. Attorneys Jennifer M. Sasso, Lindsey R. Oken and Dana Rehnquist are in charge of the prosecution, with the assistance of Paralegal Specialist Celine Laruelle.
The Defendant:
MARVIN PIPPINS (also known as “Mukk”)
Age: 32
Brooklyn, New YorkE.D.N.Y. Docket No. 19-CR-378 (PKC)
Felon Convicted of Possessing Ammunition Used in Murder in QueensRead the Press Release
Today in federal court in Brooklyn, Kevin Edwards was convicted of being a felon in possession of ammunition in connection with the February 8, 2020 fatal shooting of a man in Corona, Queens. The verdict followed a five-day trial before United States District Judge Edward R. Korman. When sentenced, Edwards faces up to 10 years in prison.
Breon Peace, United States Attorney for the Eastern District of New York, announced the verdict.
“Today, the jury has served justice on the defendant for his violent crime and disregard for the law, which tragically cost a young man his life,” stated United States Attorney Peace. “I commend the prosecutors and the investigators for their dedication to reducing gun violence in our district and holding repeat offenders accountable for their actions.”
Mr. Peace thanked the Federal Bureau of Investigation, New York Field Office, and the New York City Police Department (NYPD) for their outstanding investigative work on the case.
As proven at trial, on February 8, 2020, shortly after 12 p.m., the defendant drove to Northern Blvd. and 101st Street in Queens, New York near a bodega where the victim Dontae Hambrick was standing with other men. As captured on a nearby surveillance camera, after double parking his vehicle, the defendant walked over to the group of men, shook hands with three of the men before pulling out a handgun, and fired at least six rounds of .40 caliber ammunition at Hambrick, hitting him in the torso and legs. Edwards got back into the SUV and fled. Hambrick was transported to Elmhurst Hospital Center where he was pronounced dead. NYPD officers canvassed the area and recovered video from a security camera near the crime scene and six .40 caliber shell casings.
At the time of the shooting, Edwards had three prior felony drug convictions.
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. The Department of Justice reinvigorated PSN in 2017 as part of its renewed focus on targeting violent criminals, directing all U.S. Attorneys’ Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime.
Assistant United States Attorneys Adam Amir and Lauren Bowman are in charge of the prosecution with the assistance of Paralegal Specialist Bridget Donovan.
The Defendant:
KEVIN EDWARDS (also known as “Cuzzo”)
Age: 42
Queens, New YorkE.D.N.Y. Docket No. 21-CR-165 (ERK)
Two Certified Nurse Midwives, One Licensed Practical Nurse and Two Business Owners Among Those Charged in Brooklyn as Part of National Health Care Related COVID-19 Enforcement ActionRead the Press Release
Five individuals, including two certified nurse midwives, one licensed practical nurse and two health care business owners, have been charged for their participation in separate schemes that fraudulently distributed more than 2,600 fake COVID-19 vaccination records cards and defrauded the Paycheck Protection Program and Economic Injury Disaster Loan Program of more than $1.7 million. The charges filed in federal court in Brooklyn, New York, are part of a nationwide COVID-19 enforcement action led by the Criminal Division’s Fraud Section, which resulted in criminal charges against 18 individuals for their alleged participation in health care fraud schemes involving approximately $490 million in fraudulent claims.
The charges were announced by Breon Peace, United States Attorney for the Eastern District of New York; Kenneth A. Polite, Jr., Assistant Attorney General of the Justice Department’s Criminal Division; Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI); and Thomas M. Fattorusso, Acting Special Agent-in-Charge, Internal Revenue Service-Criminal Investigation, New York (IRS-CI).
“The defendants in these cases used the COVID-19 pandemic as an opportunity to engage in fraud, including faking vaccine cards and stealing vital funds designed to keep struggling businesses afloat,” stated United States Attorney Peace. “My Office remains committed to combating the opportunistic fraud that occurred in connection with the pandemic.”
Mr. Peace thanked the New York State Department of Health for their assistance with the case.
The results of the nationwide enforcement action were announced today by Assistant Attorney General Polite.
“Today’s announcement marks the largest-ever coordinated law enforcement action in the United States targeting health care fraud schemes that exploit the COVID-19 pandemic,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “The Criminal Division’s Health Care Fraud Unit and our partners are committed to rooting out pandemic-related fraud and holding accountable anyone seeking to profit from a public health emergency.”
“Since the start of the pandemic, we have seen the aid for businesses and individuals stolen through fraud and deceit. Fraudsters have lined their pockets and built real estate empires through illicit gains, showing no regard for those who truly need the funds. IRS Criminal Investigation and our investigative partners stay committed to targeting the criminals taking advantage of COVID relief benefits to see that the only pockets they line are those of a prison jumper,” said Thomas M. Fattorusso, Special Agent in Charge of IRS-CI New York.
“The defendants allegedly operated a COVID-19 vaccination card fraud scheme distributing vaccine cards to individuals not vaccinated while also destroying doses of the vaccine intended to protect members of the community. COVID-19 health care fraud schemes put the well-being of society at risk. The FBI will continue to ensure schemers defrauding the government face the consequences in the criminal justice system,” stated Assistant Director-in-Charge Driscoll.
Schemes charged in the Eastern District of New York, detailed in two indictments and one criminal information, include the following:
United States v. Kathleen Breault and Kelly McDermott
The indictment charges certified nurse midwives Kathleen Breault and Kelly McDermott with conspiracy to defraud the United States. The indictment alleges that McDermott, who owns Sage-Femme Midwifery PLLC, a midwife clinic in Albany, New York, and Breault, who worked at Sage-Femme, conspired to enroll Sage-Femme as an authorized COVID-19 vaccine administration site and to provide COVID-19 vaccination record cards to individuals who were not vaccinated, including minors who were not at the time eligible to be vaccinated and non-United States citizens who were not present in the United States when they were purportedly vaccinated. The defendants allegedly destroyed vials of COVID-19 vaccines that were intended to be used to vaccinate patients. Even though Sage-Femme was a small midwife practice, the defendants’ fraud turned it into one of the busiest Johnson & Johnson vaccination sites in New York State, outpacing large, state-run vaccination sites.
United States v. Sherilyn Pellitteri
The information charges Sherilyn Pellitteri, a licensed practical nurse, with conspiracy to defraud the United States. The information alleges that Pellitteri, an employee of Sage-Femme Midwifery PLLC, a midwife clinic in Albany, New York, conspired to enroll Sage-Femme as an authorized COVID-19 vaccine administration site and to provide COVID-19 vaccination record cards to individuals who were not vaccinated, including minors who were not at the time eligible to be vaccinated and non-United States citizens who were not present in the United States when they were purportedly vaccinated. The defendant allegedly destroyed vials of COVID-19 vaccines that were intended to be used to vaccinate patients. Even though Sage-Femme was a small midwife practice, the defendant’s fraud turned it into one of the busiest vaccination sites in New York State, outpacing large, state-run vaccination sites.
United States v. Kate Spencer and Ziv Biton
The indictment charges Kate Spencer and Ziv Biton with conspiracy to commit wire fraud and bank fraud, money laundering conspiracy and money laundering. The indictment alleges that Spencer and Biton caused the submission of numerous fraudulent loan applications to the Paycheck Protection Program and the Economic Injury Disaster Loan Program on behalf of purported health care businesses, among others. The applications contained false statements and included falsified documents regarding the purported businesses and the intended use of the loan funds, resulting in the distribution of over $1.7 million in fraudulent loans. The funds were allegedly used for personal expenses, such as purchases of residential properties.
The cases are being prosecuted by Trial Attorneys Patrick J. Campbell and Andrew Estes of the Criminal Division’s Fraud Section.
The charges are allegations and the defendants are presumed innocent unless and until proven guilty.
The Defendants:
SHERILYN PELLITTERI
Age: 41
Somerset, KYE.D.N.Y. Docket No.: 23-CR-113 (RPK)
KATHLEEN BREAULT
Age: 65
Cambridge, NYE.D.N.Y. Docket No. 23-CR-158 (RPK)
KELLY MCDERMOTT
Age: 61
Albany, NYE.D.N.Y. Docket No.: 23-CR-158 (RPK)
KATE SPENCER
Age: 39
North Miami Beach, FLE.D.N.Y. Docket No. 23-CR-145 (HG)
ZIV BITON
Age: 34
North Miami Beach, FLE.D.N.Y. Docket No.: 23-CR-145 (HG)
Fugitive High-Ranking MS-13 Leader Arrested on Terrorism and Racketeering ChargesRead the Press Release
Earlier today, in federal court in Houston, Jose Wilfredo Ayala-Alcantara, also known as “Indio de Hollywood,” a high-ranking leader of La Mara Salvatrucha, also known as “MS-13,” was transferred to the Eastern District of New York where he, together with 12 other high-ranking MS-13 leaders, are charged with directing the transnational criminal organization’s criminal activities in the United States, El Salvador, Mexico, and elsewhere over the past two decades. Ayala-Alcantara was arrested by the Federal Bureau of Investigation (FBI), Homeland Security Investigations (HSI), and the United States Marshals Service (USMS) on April 18, 2023 when he arrived at George Bush Intercontinental Airport in Houston, Texas. The day before, Ayala-Alcantara had been located by Mexican authorities, who determined that he was an El Salvadoran citizen with no valid status in Mexico. He was expelled from Mexico to El Salvador but arrested while transiting through the United States. Specifically, Ayala-Alcantara is charged with racketeering conspiracy, conspiracy to provide or conceal material support to terrorists, and narco-terrorism conspiracy.
Breon Peace, United States Attorney for the Eastern District of New York (EDNY); Donald Alway, Assistant Director-in-Charge of the Federal Bureau of Investigation (FBI)’s Los Angeles Field Office; Ivan J. Arvelo, Special Agent-in-Charge, Homeland Security Investigations, New York (HSI); and John J. Durham, Director of Joint Task Force Vulcan (JTFV), announced Ayala-Alcantara’s arrest and initial appearance.
“Jose Wilfredo Ayala-Alcantara’s abominable MS-13 career has come full circle — having joined the transnational gang when he lived in the United States, he was deported to El Salvador where he ascended to a leadership position, he is returning to face justice in the Eastern District of New York where MS-13 has wrought so much violence in our communities,” stated United States Attorney Peace.
“As most Angelenos know too well, MS-13 is a criminal enterprise that has wreaked havoc on communities in the United States and beyond for decades,” stated FBI Assistant Director-in-Charge Alway. “The FBI is dedicated to dismantling this scourge on society and will work with our local and international partners to do so, regardless of where they hide. There is no safe haven for criminals who do the bidding of transnational gangs.”
“As alleged, Jose Wilfredo Ayala-Alcantara has led a life of violence and crime, which propelled him to a leadership position within the Mara Salvatrucha or MS-13 street gang,” stated HSI Special Agent-in-Charge Arvelo. “Ayala-Alcantara is accused of leading MS-13, directing the gang’s vicious appetite for power through carnage and bloodshed. HSI New York will exhaust every resource at our disposal to ensure criminals like Ayala-Alcantara are located and brought to justice. I commend the unified efforts of Homeland Security Investigations New York, Las Vegas, Los Angeles, Houston, and Mexico City, as well as the Federal Bureau of Investigation Los Angeles Field Division for locating and apprehending Ayala-Alcantara.”
“For over two decades, Ayala-Alcantara has been a zealous member and leader of MS-13, who directed violence and criminal activity across the United States, El Salvador, Mexico, and beyond,” said JTFV Director Durham. “This arrest marks an important step towards holding Ayala-Alcantara accountable for decades of terrorist and criminal acts that he and his MS-13 co-conspirators have carried out internationally.”
Ayala-Alcantara’s indictment was unsealed on February 23, 2023, following the arrests of three of his co-defendants, Vladimir Antonio Arevalo-Chavez, also known as “Vampiro de Monserrat Criminales,” Walter Yovani Hernandez-Rivera, also known as “Baxter de Park View” and “Bastard de Park View,” and Marlon Antonio Menjivar-Portillo, also known as “Rojo de Park View,” but he remained a fugitive until earlier this week. As set forth in court filings, Ayala-Alcantara 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, and 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 this indictment and the related case of United States v. Henriquez, et al. A grand jury in the Eastern District of New York previously indicted 14 members of the Ranfla Nacional, who functioned as MS-13’s “Board of Directors.”
As further alleged, Ayala-Alcantara, who was one of the founding members of the Hollywood clique of the MS-13 in Los Angeles, California, and later rose to become one of the criminal organization’s highest-ranking leaders, and his co-defendants have engaged in numerous violent terrorist activities aimed at influencing the government of El Salvador (GOES). The defendants have used terrorist violence to obtain benefits and concessions from the GOES and to target GOES law enforcement and military officials. The defendants have actively engaged in public displays of violence to threaten and intimidate civilian populations, to obtain and control territory and to manipulate the electoral process in El Salvador. Several of these defendants have played prominent roles in MS-13’s past and current negotiations with the GOES.
Further, these defendants are alleged to have authorized and directed violence in the United States, Mexico, and elsewhere as part of a concerted effort to expand MS-13’s influence and territorial control. As the leaders of the MS-13 transnational criminal organization, these defendants were an integral part of the leadership chain responsible for supervising MS-13 cliques in the United States that engaged in extreme violence, including numerous murders, attempted murders, assaults, and related offenses. 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.
Three co-defendants, 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. Six other co-defendants, Edwin Ernesto Cedillos-Rodriguez, also known as “Renuente de Abriles Dangers,” Carlos Tiberio Ramirez-Valladares, also known as “Snayder de Pasadena,” Dany Fredy Ramos-Mejia, also known as “Cisco de Teclas,” Dany Balmore Romero-Garcia, also known as “Big Boy de Normandies,” “Dig Boy de Normandies,” and “D Boy de Normandies,” Ruben Antonio Rosa-Lovo, also known as “Chivo de Centrales,” and Miguel Angel Serrano-Medina, also known as “Cabro de Park View,” are believed to be in custody in El Salvador.
Since its creation in August 2019, JTFV has successfully implemented a whole-of-government approach to combatting MS-13, including increasing coordination and collaboration with foreign law enforcement partners, including El Salvador, Mexico, Honduras, and Guatemala. JTFV has also identified and targeted for prosecution the MS-13 programs, cliques and individuals that have had the most violent impact in the United States, and it has coordinated significant MS-13 indictments in U.S. Attorney’s Offices across the country, including the first use of national security charges against MS-13 leaders.
JTFV has been comprised of members from U.S. Attorney’s Offices across the country, including the EDNY; 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 Eastern District of Virginia; the Southern District of Florida; the Southern District of California; the District of Nevada; the District of Alaska; and the District of Columbia, as well as the Department of Justice’s National Security Division and the Criminal Division. In addition, all Department of Justice law enforcement agencies are involved in the effort, including the FBI; the U.S. Drug Enforcement Administration; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the USMS; and the U.S. Bureau of Prisons. In addition, HSI also plays a critical role in JTFV.
Mr. Peace expressed his thanks to the FBI’s Los Angeles, Sacramento, Salt Lake City, Houston, and Newark Field Offices, who spearheaded this investigation, with essential partnership 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, Las Vegas, Los Angeles, and Houston Field Offices. Additionally, FBI Legal Attachés in Mexico City and San Salvador, 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, and Organized Crime and Gangs Section. In addition, the Department of State, Bureau of International Narcotics and Law Enforcement Affairs, and the United States Agency for International Development, Office of Inspector General, have provided critical support for JTFV’s mission.
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, Ayala-Alcantara faces a maximum sentence of life in prison.
The government’s case is being prosecuted by Assistant U.S. Attorneys James Donnelly, Matthew Shepherd, and Stewart M. Young from JTFV, with assistance from Assistant U.S. Attorneys Paul G. Scotti, Justina L. Geraci, and Megan E. Farrell from the Office’s Long Island Criminal Division.
Newly Arrested Defendant in U.S. Custody:
JOSE WILFREDO AYALA-ALCANTARA (also known as “Indio de Hollywood”)
Age: 55Defendants Previously Arrested and in U.S. Custody:
VLADIMIR ANTONIO AREVALO-CHAVEZ (also known as “Vampiro de Monserrat Criminales”)
Age: 47WALTER YOVANI HERNANDEZ-RIVERA (also known as “Baxter de Park View” and “Bastard de Park View”)
Age: 29MARLON ANTONIO MENJIVAR-PORTILLO (also known as “Rojo de Park View”)
Age: 47Fugitive Defendants:
JORGE ALEXANDER DE LA CRUZ (also known as “Cruger de Peatonales”)
Age: 45JUAN ANTONIO MARTINEZ-ABREGO (also known as “Mary Jane de Hollywood”)
Age: 42FRANCISCO JAVIER ROMAN-BARDALES (also known as “Veterano de Tribus”)
Age: 45Defendants Believed to be in El Salvador Custody:
EDWIN ERNESTO CEDILLOS-RODRIGUEZ (also known as “Renuente de Abriles Dangers”)
Age: 35CARLOS TIBERIO RAMIREZ-VALLADARES (also known as “Snayder de Pasadena”)
DANY FREDY RAMOS-MEJIA (also known as “Cisco de Teclas”)
Age: 44DANY BALMORE ROMERO-GARCIA (also known as “Big Boy de Normandies,” “Dig Boy de Normandies,” and “D Boy de Normandies”)
Age: 48RUBEN ANTONIO ROSA-LOVO (also known as “Chivo de Centrales”)
Age: 52MIGUEL ANGEL SERRANO-MEDINA (also known as “Cabro de Park View”)
Age: 47E.D.N.Y. Docket No.: 22-CR-429 (JMA)
Bloodhound Brims Leader and Gang Members Indicted for Racketeering and Attempted Murders on Long IslandRead the Press Release
Earlier today, a 22-count indictment was unsealed in federal court in Central Islip charging Jussiah Herbert, a leader of the Bloodhound Brims (BHB) street gang, and BHB gang members Brandon Hicks and Janell Johnson with racketeering, attempted murders in aid of racketeering, assaults and attempted assaults in aid of racketeering, firearms charges and narcotics possession and distribution. Herbert was arrested today in North Carolina and will make an initial appearance tomorrow in federal court in Winston-Salem. Hicks and Johnson were previously arrested and will be arraigned at a later date.
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 Rodney K. Harrison, Commissioner, Suffolk County Police Department (SCPD), announced the arrest and charges.
“As alleged, Herbert showed zero regard for others by ordering his underlings to carry out shootings that wounded numerous victims and endangered the community just so he could maintain and increase the violent reputation of the ruthless street gang that he led,” stated United States Attorney Peace. “This Office and our law enforcement partners will continue working relentlessly to address gun violence in our district and bring to justice members of violent gangs.”
“Jussiah Herbert is accused of using violence, fear, and intimidation to maintain his leadership of the Bloodhound Brims (BHB) street gang,” said HSI New York Special Agent in Charge Ivan J. Arvelo. “He is alleged to have ruthlessly ordered gang members to commit horrific acts, to include attempted murder against suspected rival gang members to further his criminal enterprise and control Long Island neighborhoods so the BHB could thrive. HSI will continue to work with our law enforcement partners to keep our communities safe and free of violent gang members.”
As alleged in the indictment and court filings and proceedings, Herbert directed other BHB gang members, including Hicks, to shoot at members of rival gangs on August 16, 2020, August 25, 2020 and October 15, 2020 at locations in Brentwood, Central Islip and West Babylon, New York. During those shootings, four individuals were shot and suffered injuries as a result of the shootings. In a fourth incident, which occurred on September 15, 2021, in Bay Shore, New York, Herbert and other BHB members, including Johnson, shot at individuals whom they believed to be rival gang members.
Hicks was previously arrested on federal narcotics and firearms offenses in April 2021 and Johnson was previously arrested in December 2022 in connection with New York State conspiracy offenses. Both Hicks and Johnson are currently incarcerated and awaiting trial on the earlier charges.
The charges in the indictment are allegations, and the defendants are presumed to be innocent unless and until proven guilty. If convicted, Herbert faces up to a maximum sentence of 60 years’ imprisonment.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorney Bradley T. King is in charge of the prosecution.
The Defendant Arrested Today:
JUSSIAH HERBERT (also known as “Loko” and “Lokkoo BeenHoundin”)
Age: 26
Blanch, North CarolinaThe Defendants Previously Arrested:
BRANDON HICKS (also known as “Bang Swoop” and “Swoopy”)
Age: 21
Hauppauge, New YorkJANELL JOHSNON (also known as “Jahh Jahh” and “Glizzy”)
Age: 20
Shirley, New YorkE.D.N.Y. Docket No. 23-CR-164 (GRB)
OFAC-Designated Hizballah Financier and Eight Associates Charged with Multiple Crimes Arising Out of Scheme to Evade Terrorism-Related SanctionsRead the Press Release
A nine-count indictment was unsealed today in United States District Court for the Eastern District of New York charging Nazem Ahmad and eight co-defendants with conspiring to defraud the United States and foreign governments, evade U.S. sanctions and customs laws, and conduct money laundering transactions by securing goods and services for the benefit of Ahmad, a Lebanese resident and dual Belgian-Lebanese citizen who was sanctioned by the United States for being a financier for Hizballah, a foreign terrorist organization. Despite being sanctioned and prohibited from engaging in transactions with U.S. persons since December 2019, Ahmad and his coconspirators relied on a complex web of business entities to obtain valuable artwork from U.S. artists and art galleries and to secure U.S.-based diamond-grading services all while hiding Ahmad’s involvement in and benefit from these activities. Approximately $160 million worth of artwork and diamond-grading services were transacted through the U.S. financial system. One defendant was arrested today in the United Kingdom at the request of the United States, and the eight remaining defendants, including Ahmad, are believed to reside outside the United States and remain at large. The government obtained seizure warrants for millions of dollars in assets that include a diamond ring, cash in an account, and artwork.
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; Tae D. Johnson, U.S. Immigration and Customs Enforcement Deputy Director and Senior Official Performing the Duties of the Director, Department of Homeland Security; and Matthew S. Axelrod, Assistant Secretary of Commerce for Export Enforcement, U.S. Department of Commerce, Bureau of Industry and Security, Office of Export Enforcement (BIS), announced the charges.
“The United States implemented terrorism sanctions so that terrorist organizations like Hizballah would be cut off from the goods and services needed to fund violent acts of terrorism. As alleged, Nazem Ahmad and his co-defendants benefitted from the multi-million-dollar trade in diamonds and artwork even after Ahmad was sanctioned for his involvement with a terrorist organization,” stated United States Attorney Peace. “Our Office will continue to prosecute individuals who evade these sanctions and thereby offer a lifeline to designated foreign terrorist organizations.”
“Despite being sanctioned for his dealings with a terrorist organization, Mr. Ahmad remained active in the US-based art and diamond trade while concealing his illicit involvement,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “Today we hold Ahmad and his associates accountable and demonstrate that those who would flout our sanctions cannot hide from US justice.”
“This HSI investigation speaks to the unwavering commitment of the U.S. and U.K. governments to prevent art and diamond markets from becoming a haven of illicit financial activity,” said U.S. Immigration and Customs Enforcement Deputy Director and Senior Official Performing the Duties of the Director Tae D. Johnson. “I commend HSI and our investigative partners for their dedication in seeing this investigation through – over many years – to substantial actions. We will utilize every tool at our disposal to dismantle these illicit networks.”
“The funding of foreign terrorist organizations like Hizballah is illegal, regardless of whether that funding comes in the form of cash or the export of high-priced diamonds and art,” said Assistant Secretary of Commerce for Export Enforcement Matthew S. Axelrod. “We are proud to have partnered with DOJ and HSI to bring this significant enforcement action.”
As alleged, Nazem Ahmad was involved in real estate development, the international trade of diamonds, and the international acquisition and sale of artwork, and operated these enterprises through a complex web of business entities. Ahmad was also an associate of high-level members of Hizballah, a Lebanon-based terrorist group that was designated by the United States as a Foreign Terrorist Organization and Specially Designated Global Terrorist. On December 13, 2019, pursuant to the International Emergency Economic Powers Act (IEEPA) and the Global Terrorism Sanctions Regulations, the U.S. Department of Treasury’s Office of Foreign Assets Control (OFAC) designated Ahmad and 11 businesses associated with Ahmad as Specially Designated Nationals (SDN) for Ahmad’s material support of, and provision of goods and services to, Hizballah. At the time of the designation, OFAC explained that Ahmad was “considered a major Hizballah financial donor who laundered money through his companies for Hizballah and provided funds personally to Hizballah Secretary-General Hassan Nasrallah” and was also “involved in ‘blood diamond’ smuggling” who “stores some of his personal funds in high-value art.”
Despite being sanctioned and prohibited from engaging in most transactions with U.S. persons, Ahmad continued to secure valuable goods and services from U.S. persons notwithstanding that such transactions constituted violations of U.S. sanctions and other federal laws. Specifically, Ahmad, together with his son Firas Michael Ahmad, daughter Hind Nazem Ahmad and brother-in-law Rami Yaacoub Baker, as well as associates Mohamad Hijazi, Mohamad Hassan Ismail, Sarya Nemat Martin, Ali Said Mossalem Sundar Nagarajan, and others, used numerous corporate entities and individuals to disguise Ahmad’s control and beneficial interest in the companies and in financial transactions, and facilitate the acquisition of multiple pieces of valuable artwork and diamond-grading services for millions of dollars’ worth of diamonds from U.S. persons.
Evasion of Terrorism Sanctions in the Diamond Trade
The defendants conspired to violate and evade U.S. sanctions by obtaining grading determinations and other services from a U.S.-based diamond grading company (Diamond Grading Company-1). The services of Diamond Grading Company-1, which were secured through multiple entities operating for Ahmad’s benefit, were valuable to the defendants because the services provided can affect the sales price of those diamonds and thus increase the amount that Ahmad can receive for the sale of his property. Collectively, the defendants and other conspirators sent approximately 482 diamond submissions to Diamond Grading Company-1 facilities after Ahmad was designated by OFAC in December 2019. The total weight of the diamonds submitted and graded post-sanctions was approximately 1,546 carats. For example, on or about March 18, 2021, an entity operating for the benefit of Ahmad shipped an approximately 45-carat diamond—valued at $80 million—to a facility belonging to Diamond Grading Company-1 in New York. Following the receipt of services from Diamond Grading Company-1, the 45-carat diamond was exported from the United States on April 26, 2021, back to the same entity.
Evasion of Terrorism Sanctions in the Art Market
The defendants also conspired to violate and evade U.S. sanctions by acquiring contemporary art from the United States, from U.S. persons outside the United States, or through U.S.-based financial transactions, on behalf of and for the benefit of Ahmad, despite his status as an OFAC-sanctioned SDN. Artwork allegedly obtained from the United States after Ahmad was sanctioned in December 2019 was valued at more than $450,000, while an additional $780,000 in artwork from U.S. persons located outside the United States was also acquired in violation of terrorism sanctions.
For example, in or about and between April 2021 and July 2021, Ahmad and several other defendants engaged in multiple transactions with a Chicago-based art gallery (Chicago Art Gallery-1), on behalf of and for the benefit of Ahmad. Ahmad allegedly commissioned multiple pieces of artwork, at least one of which can be seen in a picture with Ahmad, as depicted below:
Chicago Art Gallery-1 Painting Hanging (on Right) Before Ahmad Sitting at a Desk
Chicago Art Gallery-1 Paintings Commissioned by Ahmad
Between approximately February 2021 and November 2021, Ahmad and two other defendants engaged in transactions with a New York-based artist (New York Artist-1), on behalf of and for the benefit of Ahmad. After Ahmad directly negotiated the sale of artwork from New York Artist-1—pointedly directing the artist not to mention Ahmad’s name to anyone—six paintings valued at $199,800 were exported from the United States via John F. Kennedy International Airport to a Lebanese business entity used by Ahmad. At least one piece of artwork acquired from New York Artist-1 was hung in Ahmad’s residence in Lebanon as shown in the images below, which show Ahmad and co-defendant Firas Ahmad (two other uncharged individuals are obscured in the image below) in front of the artwork:
Between in or about May 2021 and June 2021, Nazem Ahmad and co-defendant Ali Said Mossalem allegedly paid for artwork acquired from a Nigerian-based artist through a wire transfer that was facilitated by a U.S. financial institution located in New York, New York. An image of one of the pieces of artwork acquired by Ahmad through the services of U.S. financial institutions is depicted below:
As part of this criminal scheme, the defendants also caused the undervaluation of goods in U.S. customs records in violation of federal law, and took other steps to obscure the value of the goods they received in order to avoid the payment of foreign taxes when the goods were imported into the relevant country.
The defendants and other conspirators engaged in this scheme to benefit Ahmad and themselves while at the same time evading terrorism-related sanctions, to avoid the payment of taxes to foreign governments on the import of valuable goods into foreign countries, and to make it more difficult for the United States government to carry out its lawful functions. Entities controlled by or operating for the benefit of Ahmad engaged in more than $400 million worth of financial transactions between approximately January 2020 and August 2022; the conspirators were responsible for importing more than $207 million of goods to the United States and exporting more than $234 million of goods from the United States between approximately December 2019 and December 2022, consisting primarily of diamonds and artwork; and approximately $160 million worth of transactions involved the U.S. financial system. At least $6 million of the proceeds of the criminal scheme was transferred to Lebanon for use by Ahmad and his associates.
The charges in the indictment are allegations, and the defendants are presumed innocent unless and until proven guilty.
The government’s case is being handled by the Office’s National Security and Cybercrime Section. Assistant United States Attorneys Craig R. Heeren and Nicholas J. Moscow, and Trial Attorney Scott A. Claffee of the National Security Division’s Counterintelligence and Export Control Section, are in charge of the prosecution with assistance from Paralegal Specialists Benjamin Richmond and Magdalena St. Surin. Assistant United States Attorney Claire Kedeshian of the Office’s Asset Recovery Section is in charge of asset forfeiture. The Department of Justice Office of International Affairs is assisting with extradition and international legal assistance in this case.
This investigation was a collaboration between HSI Cedar Rapids, New York, Cultural Property Art and Antiquities Program and Trade Transparency Unit which was made possible through support from HSI Chicago, Dallas, Houston, Kansas City, Los Angeles, Raleigh, St. Paul, and Santa Rosa. HSI Attaché Offices in Africa, Asia, Europe, and the Middle East played critical roles in the investigation. U.S. Customs and Border Protection and U.S. Department of Commerce, Bureau of Industry and Security, Office of Export Enforcement, New York Field Office were also key investigative partners.
The Department of Justice’s Office of International Affairs provided critical assistance in this case. The Department also appreciates the significant cooperation and assistance provided by the United Kingdom authorities.
The Defendants:
NAZEM AHMAD (also known as “N.A.,” “Naz,” “Naz Ahmad,” “Nazem Ali Ahmad,” “Nazem Saeed Ahmad,” “Nazim Sa’id Ahmad,” “Nizam Saed Ahmad,” “Nazem Said Ahmed,” “Nazem Saied Ahmed,” “Nazeem Said Ahmad” and “Kariumu Muhamadi”)
Lebanon and BelgiumFIRAS MICHAEL AHMAD (also known as “Firas Ahmed” and “Firas Nazem Ahmad”)
Lebanon and BelgiumHIND NAZEM AHMAD (also known as “Dida Ahmad,” “Hind El Ris,” “Hind El-Riz” and “Julie”
BelgiumRAMI YAACOUB BAKER (also known as “Ramy Kamel Yaqoub Baker”)
Lebanon and BelgiumMOHAMAD HASSAN ISMAIL
LebanonMOHAMAD HIJAZI
LebanonSARYA NEMAT MARTIN (also known as “Sarya N. Marie”)
United StatesALI SAID MOSSALEM
LebanonSUNDAR NAGARAJAN (also known as “Nagarajan Sundar Poongulam Kasiviswanathan Naga” and “Sundar Poongulam K. Nagarajan Nagarajan”)
IndiaE.D.N.Y. Docket No. 23-CR-139 (DG)
OFAC-Designated Hezbollah Financier and Eight Associates Charged with Multiple Crimes Arising Out of Scheme to Evade Terrorism-Related SanctionsRead the Press Release
A nine-count indictment was unsealed today in the Eastern District of New York charging Nazem Ahmad and eight co-defendants with conspiring to defraud the United States and foreign governments, evade U.S. sanctions and customs laws and conduct money laundering transactions by securing goods and services for the benefit of Ahmad, a Lebanese resident and dual Belgian-Lebanese citizen who was sanctioned by the United States for being a financier for Hezbollah, a foreign terrorist organization.
According to court documents, despite being sanctioned and prohibited from engaging in transactions with U.S. persons since December 2019, Ahmad and his co-conspirators relied on a complex web of business entities to obtain valuable artwork from U.S. artists and art galleries and to secure U.S.-based diamond-grading services all while hiding Ahmad’s involvement in and benefit from these activities. Approximately $160 million worth of artwork and diamond-grading services were transacted through the U.S. financial system. One defendant was arrested today in the United Kingdom at the request of the United States, and the eight remaining defendants, including Ahmad, are believed to reside outside the United States and remain at large. The government obtained seizure warrants for millions of dollars in assets that include a diamond ring, cash in an account and artwork.
“Despite being sanctioned for his dealings with a terrorist organization, Mr. Ahmad remained active in the U.S.-based art and diamond trade while concealing his illicit involvement,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “Today, we hold Ahmad and his associates accountable and demonstrate that those who would flout our sanctions cannot hide from U.S. justice.”
“The United States implemented terrorism sanctions so that terrorist organizations like Hezbollah would be cut off from the goods and services needed to fund violent acts of terrorism,” said U.S. Attorney Breon Peace for the Eastern District of New York. “As alleged, Nazem Ahmad and his co-defendants benefitted from the multimillion-dollar trade in diamonds and artwork even after Ahmad was sanctioned for his involvement with a terrorist organization. Our office will continue to prosecute individuals who evade these sanctions and thereby offer a lifeline to designated foreign terrorist organizations.”
“Let this action against Nazem Ahmad’s international criminal organization serve as a reminder that the U.S. government and its allies will tirelessly prosecute those who are sanctioned for illicitly financing terrorist activities and wantonly violate those sanctions in order to continue accruing substantial wealth that can be used to continue financing Hezbollah,” said Deputy Secretary John K. Tien of Department of Homeland Security. “We are grateful to our partners across the federal government and our partnership with the United Kingdom that demonstrates international commitment and cooperation to preventing future atrocities by dismantling illicit financial networks supporting terrorism.”
“The funding of foreign terrorist organizations like Hezbollah is illegal, regardless of whether that funding comes in the form of cash or the export of high-priced diamonds and art,” said Assistant Secretary Export Enforcement Matthew S. Axelrod of the Department of Commerce. “We are proud to have partnered with the Justice Department and HSI to bring this significant enforcement action.”
As alleged, Ahmad was involved in real estate development, the international trade of diamonds, and the international acquisition and sale of artwork, and operated these enterprises through a complex web of business entities. Ahmad was also an associate of high-level members of Hezbollah, a Lebanon-based terrorist group that was designated by the United States as a Foreign Terrorist Organization and Specially Designated Global Terrorist. On Dec. 13, 2019, pursuant to the International Emergency Economic Powers Act (IEEPA) and the Global Terrorism Sanctions Regulations, the U.S. Department of Treasury’s Office of Foreign Assets Control (OFAC) designated Ahmad and 11 businesses associated with Ahmad as Specially Designated Nationals (SDNs) for Ahmad’s material support of, and provision of goods and services to, Hezbollah. At the time of the designation, OFAC explained that Ahmad was “considered a major Hezbollah financial donor who laundered money through his companies for Hezbollah and provided funds personally to Hezbollah Secretary-General Hassan Nasrallah” and was also “involved in ‘blood diamond’ smuggling” who “stores some of his personal funds in high-value art.”
Despite being sanctioned and prohibited from engaging in most transactions with U.S. persons, Ahmad continued to secure valuable goods and services from U.S. persons notwithstanding that such transactions constituted violations of U.S. sanctions and other federal laws. Specifically, Ahmad, together with his son Firas Michael Ahmad, daughter Hind Nazem Ahmad and brother-in-law Rami Yaacoub Baker, as well as associates Mohamad Hijazi, Mohamad Hassan Ismail, Sarya Nemat Martin, Ali Said Mossalem Sundar Nagarajan and others, used numerous corporate entities and individuals to disguise Ahmad’s control and beneficial interest in the companies and in financial transactions, and facilitate the acquisition of multiple pieces of valuable artwork and diamond-grading services for millions of dollars’ worth of diamonds from U.S. persons.
Evasion of Terrorism Sanctions in the Diamond Trade
As alleged, the defendants conspired to violate and evade U.S. sanctions by obtaining grading determinations and other services from a U.S.-based diamond grading company (Diamond Grading Company-1). The services of Diamond Grading Company-1, which were secured through multiple entities operating for Ahmad’s benefit, were valuable to the defendants because the services provided can affect the sales price of those diamonds and thus increase the amount that Ahmad can receive for the sale of his property. Collectively, the defendants and other conspirators sent approximately 482 diamond submissions to Diamond Grading Company-1 facilities after Ahmad was designated by OFAC in December 2019. The total weight of the diamonds submitted and graded post-sanctions was approximately 1,546 carats. For example, on or about March 18, 2021, an entity operating for the benefit of Ahmad shipped an approximately 45-carat diamond – valued at $80 million – to a facility belonging to Diamond Grading Company-1 in New York. Following the receipt of services from Diamond Grading Company-1, the 45-carat diamond was exported from the United States on April 26, 2021, back to the same entity.
Evasion of Terrorism Sanctions in the Art Market
The defendants also conspired to violate and evade U.S. sanctions by acquiring contemporary art from the United States, from U.S. persons outside the United States, or through U.S.-based financial transactions, on behalf of and for the benefit of Ahmad, despite his status as an OFAC-sanctioned SDN. Artwork allegedly obtained from the United States after Ahmad was sanctioned in December 2019 was valued at more than $450,000, while an additional $780,000 in artwork from U.S. persons located outside the United States was also acquired in violation of terrorism sanctions.
For example, in or about and between April 2021 and July 2021, Ahmad and several other defendants engaged in multiple transactions with a Chicago-based art gallery (Chicago Art Gallery-1), on behalf of and for the benefit of Ahmad. Ahmad allegedly commissioned multiple pieces of artwork, at least one of which can be seen in a picture with Ahmad, as depicted below:
Between approximately February 2021 and November 2021, Ahmad and two other defendants engaged in transactions with a New York-based artist (New York Artist-1), on behalf of and for the benefit of Ahmad. After Ahmad directly negotiated the sale of artwork from New York Artist-1 – pointedly directing the artist not to mention Ahmad’s name to anyone – six paintings valued at $199,800 were exported from the United States via John F. Kennedy International Airport to a Lebanese business entity used by Ahmad. At least one piece of artwork acquired from New York Artist-1 was hung in Ahmad’s residence in Lebanon.
As part of this criminal scheme, the defendants also caused the undervaluation of goods in U.S. customs records in violation of federal law and took other steps to obscure the value of the goods they received in order to avoid the payment of foreign taxes when the goods were imported into the relevant country.
The defendants and other conspirators engaged in this scheme to benefit Ahmad and themselves while at the same time evading terrorism-related sanctions, to avoid the payment of taxes to foreign governments on the import of valuable goods into foreign countries and to make it more difficult for the United States government to carry out its lawful functions. Entities controlled by or operating for the benefit of Ahmad engaged in more than $400 million worth of financial transactions between approximately January 2020 and August 2022; the conspirators were responsible for importing more than $207 million of goods to the United States and exporting more than $234 million of goods from the United States between approximately December 2019 and December 2022, consisting primarily of diamonds and artwork; and approximately $160 million worth of transactions involved the U.S. financial system. At least $6 million of the proceeds of the criminal scheme was transferred to Lebanon for use by Ahmad and his associates.
Assistant U.S. Attorneys Craig R. Heeren and Nicholas J. Moscow for the Eastern District of New York and Trial Attorney Scott A. Claffee of the National Security Division’s Counterintelligence and Export Control Section are in charge of the prosecution, with assistance from Paralegal Specialists Benjamin Richmond and Magdalena St. Surin. Assistant U.S. Attorney Claire Kedeshian of the is handling asset forfeiture. The Department of Justice Office of International Affairs is assisting with extradition and international legal assistance in this case.
This investigation was a collaboration between HSI Cedar Rapids, New York, HSI New York Counter Proliferation Investigations and Trade Transparency Unit which was made possible through support from HSI Chicago, Dallas, Houston, Kansas City, Los Angeles, Raleigh, St. Paul, and Santa Rosa. HSI Attaché offices in Africa, Asia, Europe, and the Middle East played critical roles in the investigation. U.S. Customs and Border Protection was also a key investigative partner.
The Department also appreciates the significant cooperation and assistance provided by the United Kingdom authorities.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Brooklyn Federal Correctional Officer Charged with BriberyRead the Press Release
A criminal complaint was unsealed today in federal court in Brooklyn charging Quandelle Joseph, a correctional officer currently employed by the United States Bureau of Prisons (BOP), with receiving bribes in exchange for providing contraband to prison inmates at the Metropolitan Detention Center (MDC) in Brooklyn. Joseph was arrested this morning in Brooklyn, and his initial appearance was this afternoon before United States Magistrate Judge James R. Cho and he was released on $50,000 bond pending trial.
Breon Peace, United States Attorney for the Eastern District of New York, Ryan T. Geach, Special Agent-in-Charge, United States Department of Justice, Office of Inspector General, New York Field Office (DOJ-OIG), and Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the arrest and charges.
“As alleged, the defendant violated his duty as a correction officer and accepted tens of thousands of dollars in bribes to smuggle contraband into the Metropolitan Detention Center,” stated United States Attorney Peace. “By accepting bribes, the defendant violated the public’s trust and promoted conditions that risked the safety of the officers and inmates in the MDC. This Office will continue rooting out corruption at our federal and local jails, and holding corrupt public officials accountable.”
“As alleged, Joseph’s corrupt actions of accepting bribes to smuggle contraband into MDC Brooklyn endangered his fellow correctional officers, inmates, and the public. The Department of Justice Office of the Inspector General is committed to rooting out these kinds of dangerous schemes,” stated DOJ-OIG Special Agent-in-Charge Geach.
“We allege the defendant participated in a scheme to smuggle contraband into a federal prison in exchange for money, breaking not only his oath of duty but also the law. The defendant’s actions put both the inmates of MDC and his fellow correctional officers at risk. The FBI will continue to ensure corrupt individuals abusing the authority given to them by the public are held responsible in the criminal justice system,” stated FBI Assistant Director-in-Charge Driscoll.
As alleged in the complaint, Joseph became a correctional officer at the MDC in May 2020. During his employment, Joseph accepted tens of thousands of dollars from at least two different inmates to smuggle 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. A few hours later, MDC staff smelled marijuana in that inmate’s cell and recovered a contraband cell phone from the cell during a search; the inmate had flushed the marijuana down the toilet prior to the search. In June 2020, Joseph texted the inmate’s contact outside the facility that the inmate owed him $12,000. Joseph also used a “burner” telephone to communicate with another inmate about the bribery scheme and warn him about upcoming contraband searches. For example, on January 26, 2021, Joseph texted an inmate from whom he was receiving bribes, “[t]ighten 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 charges in the complaint are allegations, and the defendant is presumed innocent unless and until proven guilty. If convicted, Joseph faces a maximum sentence of fifteen years’ imprisonment.
The government’s case is being handled by the Office’s Public Integrity Section. Assistant United States Attorneys Philip Pilmar and Marietou Diouf are in charge of the prosecution.
The Defendant:
QUANDELLE JOSEPH
Age: 32
Brooklyn, NYE.D.N.Y. Docket No. 23-MJ-359
名中國國家員警被控實施針對美國居民的跨國鎮壓陰謀Read the Press Release
美國紐約東區檢察官辦公室今天在布魯克林聯邦法院公佈兩起刑事訴訟，指控 44 名被告犯有與中華人民共和國國家員警—公安部（MPS）騷擾居住在紐約大都市區和美國其他地區的中國公民有關的各種罪行。被告包括 40 名公安部官員和兩名中國網信辦官員。他們涉嫌對政治觀點和行為(例如在中國宣導民主)不受中國政府青睞的美國居民實施跨國鎮壓陰謀。
在這兩項陰謀中，被告創建並使用虛假社交媒體帳戶，騷擾和恐嚇居住在國外的中國異見者，並試圖壓制異見者在一家美國電信公司（公司1）平臺上的言論自由。據信，這些陰謀中受控的被告居住在中國或亞洲其他地方，並且仍然在逃。
美國司法部國家安全司助理司法部長馬修·奧爾森說：“這些案件表明，中華人民共和國政府會竭盡全力，壓制和騷擾那些行使基本權利公開反對中華人民共和國壓迫的美國人士，包括非法利用一家總部位於美國的科技公司。” “此類行為違反了我們的法律，是對我們民主價值觀和基本人權的侮辱。”
美國聯邦調查局反情報司代理助理主任庫爾特·羅諾（Kurt Ronnow）表示：“中國公安部利用特工，針對那些有勇氣公開反對中國共產黨的華裔人士，其中一種是秘密傳播宣傳，破壞人們對我們民主進程的信心，另一種是壓制美國視頻會議用戶的言論自由。” “我們不會容忍中共在美國的鎮壓—即其威脅、騷擾和恐嚇人民的行為。聯邦調查局將繼續對抗中國政府違反我們法律並壓制我國人民權利和自由的行為。”
披露：紐約東區美國檢察官布倫·皮士(Breon Peace) 回避本案，未參與美國訴朱利安·金(Julien Jin) 等人 (20-mj-1103) 的案件。
美國訴白雲鵬等人。
該兩項罪名起訴書指控 34 名公安部官員串謀傳播州際威脅和串謀進行州際騷擾。據信所有被告均居住在中國，但仍然在逃。
據指控，這些官員與北京市公安局合作，目前或曾經被分配到一個名為“912特別項目工作組”（簡稱“工作組”）的精英特遣隊。該工作組的目的，是對付世界各地（包括美國）的中國異見者。
紐約東區美國檢察官布倫·皮斯表示：“正如所指控，中國政府部署國家員警和912特別項目工作組不是作為維護法律和保護公共安全的工具，而是作為一個酸民農場，對在我國以其認為令人不快的方式行使言論自由的人實施攻擊，並進行宣傳，其唯一目的是在美國境內煽動分裂。” “我讚揚調查團隊，因為其全面揭露了一項針對美國居民的國家主導犯罪陰謀的陰險性。”
起訴書列出該工作組成員如何在推特等社交媒體網站上創建數千個虛假網路角色，通過線上騷擾和威脅，針對中國異見者。此類網路人物還傳播中華人民共和國政府的官方宣傳和敍事，以對抗中國異見人士的民主言論。例如，據稱，工作組成員通過臨時電子郵件，創建和維護虛假社交媒體帳戶，發佈中國政府官方內容，並與其他線上用戶互動，以避免工作組帳戶涉嫌“淹沒”特定社交媒體平臺。工作組跟蹤成員履行線上職責的表現，並在成功運營多個線上角色的工作組成員，而不會被託管平臺的社交媒體公司或平臺的其他用戶發現時對其獎勵。
調查還發現，公安部官方要求該工作組成員根據某些主題撰寫文章和視頻，例如針對海外中國異見者的活動或美國政府的政策。
據稱，被告還試圖通過傳播中華人民共和國政府的宣傳或敍事，招募美國人在不知情的情況下，充當中華人民共和國政府的代理人。被告多次利用網路角色聯繫被評估為同情和支持中國政府言論的個人，並要求這些人傳播工作組內容。
此外，該工作組成員多次採取明確的行動，將中國異見者及其會議從公司1的平臺上刪除。例如，該工作組成員通過平臺的聊天功能，發佈針對參與者的威脅，擾亂了異見者通過視頻會議，紀念天安門廣場大屠殺的努力。在中國異見者組織的另一場以反共為主題的第一連視頻會議中，工作組成員擠滿了視頻會議，大聲的音樂、粗俗的尖叫聲和針對民主派參與者的威脅淹沒了會議。
美國訴 朱利安·金等人。
該修訂後起訴書指控 10 名人士，包括一名前駐中華人民共和國 公司1 員工、六名公安部官員和兩名網信辦官員，串謀實施州際騷擾和非法串謀實施轉移身份識別手段。據信，其中九名被告居住在中國，目前仍在逃。據信第十名被告居住在印尼或中國，並且仍然在逃。
紐約東區美國第一助理檢察官波科尼(Pokorny)說：“對一名美國電信公司前駐中國員工提出的修訂後起訴書中的指控表明，在中國運營的美國公司面臨著內部威脅。”他感謝公司1 在政府調查中的合作。 “據指控，朱利安·金及其在中國公安部和網信辦的同謀將雇傭他的美國電信公司武器化，以恐嚇和壓制異見者並執行中國法律，從而損害了紐約等地的中國活動人士的利益，後者我國尋求庇護，以和平方式表達其民主觀點。”
“此類案件表明，中國共產黨再次試圖恐嚇、騷擾和鎮壓在美國的中國異見者，”聯邦調查局華盛頓辦事處助理主任大衛·桑德伯格(David Sundberg)說。 “在美國，言論自由是我們民主的基石，聯邦調查局將不懈努力，捍衛每個人對自由言論的權利，而不必擔心中共的報復。這些複雜的調查揭示，公安部通過利用美國通訊平臺和虛假社交媒體帳戶審查政治和宗教言論來鎮壓個人。”
2020 年 12 月，該部門首次宣佈對朱利安•金提出指控，罪名是他努力擾亂 2020 年 5 月和 6 月在公司1 平臺上舉行的一系列紀念 1989 年天安門廣場大屠殺的會議。 金擔任公司1 與中國政府執法和情報部門的主要聯絡人。在那個角色中，他定期回應中國政府的要求，終止會議並遮罩公司1 視頻通信平臺上的用戶。
正如原起訴書詳細描述，金和其他人在中國政府的指示下，合謀使用公司1 的美國系統，審查位於美國和其他地區人士的政治和宗教言論。例如，金和其他人擾亂了公司1 平臺上舉行的會議，討論中國政府不可接受的政治敏感話題，包括天安門廣場大屠殺。金及其同謀捏造了所謂不當行為的證據，導致公司1 的美國員工終止會議。
經修訂起訴書中的指控顯示，金與公安部和網信辦的被告直接合作，並接受被告的命令，擾亂公司1 平臺上的會議，且同案被告自 2018 年以來，始終對付在美異見者在公司1 平臺上的言論。
從 2018 年起，金和他的同案被告多次試圖終止一名居住在紐約市的中國異見人士組織的視頻聊天會議，該人士一直直言不諱地批評中國政府和中國共產黨。在 網信辦要求公司1 終止異見者在公司1 平臺上的會議後，金努力查明與異見者相關的所有帳戶，使與異見者相關的會議在“隔離區”（即回應時間已知滯後的伺服器上）舉行，隨後努力封鎖與異見者相關的所有帳戶。同樣，2019 年，金與公安部和網信辦合作，封鎖了紀念天安門廣場大屠殺的帳戶。
聯邦調查局華盛頓辦事處對上述案件進行了調查。
紐約東區的美國助理檢察官亞歷山大·所羅門 (Alexander A. Solomon)、安托瓦內特·蘭格爾 (Antoinette N. Rangel)、伊恩·理查森 (Ian C. Richardson)、尼古拉斯·莫斯科 (Nicholas J. Moscow) 和潔西嘉·威格爾 (Jessica K. Weigel) 以及國家安全部反情報和出口管制科的審判律師斯科特·克拉菲 (Scott A. Claffee) 正在起訴這些案件。
聯邦調查局創建了一個網站，供受害者舉報外國政府跟蹤、恐嚇或襲擊美國民眾的行為。請訪問： www.fbi.gov/investigate/counterintelligence/transnational-repression 。
名中国国家警察被控实施针对美国居民的跨国镇压阴谋Read the Press Release
美国纽约东区检察官办公室今天在布鲁克林联邦法院公布两起刑事诉讼，指控 44 名被告犯有与中华人民共和国国家警察—公安部（MPS）骚扰居住在纽约大都市区和美国其他地区的中国公民有关的各种罪行。被告包括 40 名公安部官员和两名中国网信办官员。他们涉嫌对政治观点和行为(例如在中国倡导民主)不受中国政府青睐的美国居民实施跨国镇压阴谋。
在这两项阴谋中，被告创建并使用虚假社交媒体账户，骚扰和恐吓居住在国外的中国持不同政见者，并试图压制持不同政见者在一家美国电信公司（公司1）平台上的言论自由。据信，这些阴谋中受控的被告居住在中国或亚洲其他地方，并且仍然在逃。
美国司法部国家安全司助理司法部长马修·奥尔森说：“这些案件表明，中华人民共和国政府会竭尽全力，压制和骚扰那些行使基本权利公开反对中华人民共和国压迫的美国人士，包括非法利用一家总部位于美国的科技公司。” “此类行为违反了我们的法律，是对我们民主价值观和基本人权的侮辱。”
美国联邦调查局反情报司代理助理主任库尔特·罗诺（Kurt Ronnow）表示：“中国公安部利用特工，针对那些有勇气公开反对中国共产党的华裔人士，其中一种是秘密传播宣传，破坏人们对我们民主进程的信心，另一种是压制美国视频会议用户的言论自由。” “我们不会容忍中共在美国的镇压—即其威胁、骚扰和恐吓人民的行为。联邦调查局将继续对抗中国政府违反我们法律并压制我国人民权利和自由的行为。”
披露：纽约东区美国检察官布伦·皮士(Breon Peace) 回避本案，未参与美国诉朱利安·金(Julien Jin) 等人 (20-mj-1103) 的案件。
美国诉白云鹏等人。
该两项罪名起诉书指控 34 名公安部官员串谋传播州际威胁和串谋进行州际骚扰。据信所有被告均居住在中国，但仍然在逃。
据指控，这些官员与北京市公安局合作，目前或曾经被分配到一个名为“912特别项目工作组”（简称“工作组”）的精英特遣队。该工作组的目的，是对付世界各地（包括美国）的中国持不同政见者。
纽约东区美国检察官布伦·皮斯表示：“正如所指控，中国政府部署国家警察和912特别项目工作组不是作为维护法律和保护公共安全的工具，而是作为一个酸民农场，对在我国以其认为令人不快的方式行使言论自由的人实施攻击，并进行宣传，其唯一目的是在美国境内煽动分裂。” “我赞扬调查团队，因为其全面揭露了一项针对美国居民的国家主导犯罪阴谋的阴险性。”
起诉书列出该工作组成员如何在推特等社交媒体网站上创建数千个虚假网络角色，通过在线骚扰和威胁，针对中国持不同政见者。此类网络人物还传播中华人民共和国政府的官方宣传和叙事，以对抗中国持不同政见人士的民主言论。例如，据称，工作组成员通过临时电子邮件，创建和维护虚假社交媒体帐户，发布中国政府官方内容，并与其他在线用户互动，以避免工作组账户涉嫌“淹没”特定社交媒体平台。工作组跟踪成员履行在线职责的表现，并在成功运营多个在线角色的工作组成员，而不会被托管平台的社交媒体公司或平台的其他用户发现时对其奖励。
调查还发现，公安部官方要求该工作组成员根据某些主题撰写文章和视频，例如针对海外中国持不同政见者的活动或美国政府的政策。
据称，被告还试图通过传播中华人民共和国政府的宣传或叙事，招募美国人在不知情的情况下，充当中华人民共和国政府的代理人。被告多次利用网络角色联系被评估为同情和支持中国政府言论的个人，并要求这些人传播工作组内容。
此外，该工作组成员多次采取明确的行动，将中国持不同政见者及其会议从公司1的平台上删除。例如，该工作组成员通过平台的聊天功能，发布针对参与者的威胁，扰乱了持不同政见者通过视频会议，纪念天安门广场大屠杀的努力。在中国持不同政见者组织的另一场以反共为主题的第一连视频会议中，工作组成员挤满了视频会议，大声的音乐、粗俗的尖叫声和针对民主派参与者的威胁淹没了会议。
美国诉 朱利安·金等人。
该修订后起诉书指控 10 名人士，包括一名前驻中华人民共和国 公司1 员工、六名公安部官员和两名网信办官员，串谋实施州际骚扰和非法串谋实施转移身份识别手段。据信，其中九名被告居住在中国，目前仍在逃。据信第十名被告居住在印度尼西亚或中国，并且仍然在逃。
纽约东区美国第一助理检察官波科尼( Pokorny)说：“对一名美国电信公司前驻中国员工提出的修订后起诉书中的指控表明，在中国运营的美国公司面临着内部威胁。”他感谢公司1 在政府调查中的合作。 “据指控，朱利安·金及其在中国公安部和网信办的同谋将雇佣他的美国电信公司武器化，以恐吓和压制持不同政见者并执行中国法律，从而损害了纽约等地的中国活动人士的利益，后者我国寻求庇护，以和平方式表达其民主观点。”
“此类案件表明，中国共产党再次试图恐吓、骚扰和镇压在美国的中国持不同政见者，”联邦调查局华盛顿办事处助理主任大卫·桑德伯格(David Sundberg)说。 “在美国，言论自由是我们民主的基石，联邦调查局将不懈努力，捍卫每个人对自由言论的权利，而不必担心中共的报复。这些复杂的调查揭示，公安部通过利用美国通讯平台和虚假社交媒体账户审查政治和宗教言论来镇压个人。”
2020 年 12 月，该部门首次宣布对朱利安•金提出指控，罪名是他努力扰乱 2020 年 5 月和 6 月在公司1 平台上举行的一系列纪念 1989 年天安门广场大屠杀的会议。 金担任公司1 与中国政府执法和情报部门的主要联络人。在那个角色中，他定期响应中国政府的要求，终止会议并屏蔽公司1 视频通信平台上的用户。
正如原起诉书详细描述，金和其他人在中国政府的指示下，合谋使用公司1 的美国系统，审查位于美国和其他地区人士的政治和宗教言论。例如，金和其他人扰乱了公司1 平台上举行的会议，讨论中国政府不可接受的政治敏感话题，包括天安门广场大屠杀。金及其同谋捏造了所谓不当行为的证据，导致公司1 的美国员工终止会议。
经修订起诉书中的指控显示，金与公安部和网信办的被告直接合作，并接受被告的命令，扰乱公司1 平台上的会议，且同案被告自 2018 年以来，始终对付在美持不同政见者在公司1 平台上的言论。
从 2018 年起，金和他的同案被告多次试图终止一名居住在纽约市的中国持不同政见人士组织的视频聊天会议，该人士一直直言不讳地批评中国政府和中国共产党。在 网信办要求公司1 终止持不同政见者在公司1 平台上的会议后，金努力查明与持不同政见者相关的所有帐户，使与持不同政见者相关的会议在“隔离区”（即响应时间已知滞后的服务器上）举行，随后努力封锁与持不同政见者相关的所有帐户。同样，2019 年，金与公安部和网信办合作，封锁了纪念天安门广场大屠杀的账户。
联邦调查局华盛顿办事处对上述案件进行了调查。
纽约东区的美国助理检察官亚历山大·所罗门 (Alexander A. Solomon)、安托瓦内特·兰格尔 (Antoinette N. Rangel)、伊恩·理查森 (Ian C. Richardson)、尼古拉斯·莫斯科 (Nicholas J. Moscow) 和杰西卡·威格尔 (Jessica K. Weigel) 以及国家安全部反情报和出口管制科的审判律师斯科特·克拉菲 (Scott A. Claffee) 正在起诉这些案件。
联邦调查局创建了一个网站，供受害者举报外国政府跟踪、恐吓或袭击美国民众的行为。请访问： www.fbi.gov/investigate/counterintelligence/transnational-repression 。
Two Individuals Arrested for Operating Undeclared Police Station of the Chinese Government in Chinatown in ManhattanRead the Press Release
Today, a complaint was unsealed in federal court in Brooklyn charging two defendants in connection with opening and operating an undeclared overseas police station, located in lower Manhattan, for the Ministry of Public Security (“MPS”) of the People’s Republic of China (“PRC”). Lu Jianwang and Chen Jinping were arrested earlier this morning at their homes in New York City. Their initial appearances are scheduled this afternoon before United States Magistrate Judge James R. Cho.
Breon Peace, United States Attorney for the Eastern District of New York; Matthew G. Olsen, Assistant Attorney General of the Justice Department’s National Security Division; and Michael J. Driscoll, Assistant Director-in-Charge, FBI, New York Field Office, announced the arrests and charges.
“This prosecution reveals the Chinese government’s flagrant violation of our nation’s sovereignty by establishing a secret police station in the middle of New York City,” stated United States Attorney Peace. “As alleged, the defendants were directed to do the PRC’s bidding, including helping locate a Chinese dissident living in the United States, and obstructed our investigation by deleting their communications with a Chinese Ministry of Public Security official. Such a police station has no place here in New York City—or any American community.”
“The PRC, through its repressive security apparatus, established a secret physical presence in New York City to monitor and intimidate dissidents and those critical of its government,” stated Assistant Attorney General Olsen. “The PRC’s actions go far beyond the bounds of acceptable nation-state conduct. We will resolutely defend the freedoms of all those living in our country from the threat of authoritarian repression.”
“The defendants, operating on behalf of the government of the People’s Republic of China, are alleged to have operated an undeclared police station in downtown New York City,” stated FBI Assistant Director-in-Charge Driscoll. “Upon learning of the FBI’s investigation into the police station, the defendants erased their communications to conceal their activities. Clandestine police stations operating within our communities are not only illegal but infringe on the United States' freedom - they will not be tolerated. The FBI is unwavering in our mission to protect the American people and uphold our Constitution; anyone working on behalf of a hostile foreign nation to violate our national security and freedoms will be held accountable.”
As alleged in the complaint, Lu Jianwang and Chen Jinping are charged with conspiring to act as agents of the PRC government as well as obstructing justice by destroying evidence of their communications with an MPS official (the “MPS Official”). While acting under the direction and control of the MPS Official, the defendants worked together to establish the first known overseas police station in the United States on behalf of the Fuzhou branch of the MPS. The police station—which closed in the fall of 2022—occupied an entire floor in an office building in Manhattan’s Chinatown. Lu and Chen helped open and operate the clandestine police station. None of the participants in the scheme informed the U.S. government that they were helping the PRC government surreptitiously open and operate an undeclared MPS police station on U.S. soil.
Before helping open the police station in early 2022, Lu had a longstanding relationship of trust with PRC law enforcement, including the MPS. Since 2015, and through the operation of the secret police station, Lu was directed to assist the PRC government’s repressive activities on U.S. soil:
- In 2015, during PRC President Xi Jinping’s visit to the United States, Lu participated in counterprotests in Washington, D.C. against members of a religion that is forbidden under PRC law. A deputy director of the MPS awarded Lu a plaque for the work he performed on behalf of the PRC government.
- In 2018, Lu was enlisted in efforts to cause a purported PRC fugitive to return to the PRC. The victim reported being repeatedly harassed to return to the PRC, including through threats of violence made to the victim and the victim’s family in the United States and in the PRC.
- In 2022, the MPS Official sought Lu’s assistance in locating an individual living in California who is a pro-democracy activist. In turn, Lu enlisted the help of another co-conspirator. Later, when confronted by the FBI about these conversations, Lu denied that they occurred.
In October 2022, the FBI conducted a judicially authorized search of the illegal police station. In connection with the search, FBI agents interviewed both Lu and Chen and seized their phones. In reviewing the contents of these phones, FBI agents observed that communications between Lu and Chen, on the one hand, and the MPS Official, on the other, appeared to have been deleted. In subsequent consensual interviews, Lu and Chen admitted to the FBI that they had deleted their communications with the MPS Official after learning about the ongoing FBI investigation, thus preventing the FBI from learning the full extent of the MPS’s directions for the overseas police station.
If convicted of conspiring to act as agents of the PRC, the defendants face a maximum sentence of five years in prison. The obstruction of justice charge carries a maximum sentence of 20 years in prison.
The charges in the complaints are allegations, and the defendants are presumed innocent unless and until proven guilty.
The government’s case is being handled by the Office’s National Security and Cybercrime Section. Assistant United States Attorneys Alexander A. Solomon, and Antoinette N. Rangel are 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 FBI has created a website for victims to report efforts by foreign governments to stalk, intimidate, or assault people in the United States. If you believe that you are or have been a victim of transnational repression, please visit https://www.fbi.gov/investigate/counterintelligence/transnational-repression.
The Defendants:
Lu Jianwang
Age: 61
Bronx, New YorkE.D.N.Y. Docket No. 23-MJ-265
Chen Jinping
Age: 59
Manhattan, New YorkE.D.N.Y. Docket No. 23-MJ-265
Two Arrested for Operating Illegal Overseas Police Station of the Chinese GovernmentRead the Press Release
A complaint was unsealed today in federal court in Brooklyn, New York, charging two defendants in connection with opening and operating an illegal overseas police station, located in lower Manhattan, New York, for a provincial branch of the Ministry of Public Security (MPS) of the People’s Republic of China (PRC). “Harry” Lu Jianwang, 61, of the Bronx, and Chen Jinping, 59, of Manhattan, were arrested earlier this morning at their homes in New York City. Their initial appearances are scheduled this afternoon in Brooklyn before U.S. Magistrate Judge Ramon E. Reyes Jr.
As alleged in the complaint, Lu and Chen are charged with conspiring to act as agents of the PRC government as well as obstructing justice by destroying evidence of their communications with an MPS official. The defendants worked together to establish the first overseas police station in the United States on behalf of the Fuzhou branch of the MPS. The police station – which closed in the fall of 2022 after those operating it became aware of the FBI’s investigation – occupied a floor in an office building in Manhattan’s Chinatown. While acting under the direction and control of an MPS Official, Lu and Chen helped open and operate the clandestine police station. None of the participants in the scheme informed the U.S. government that they were helping the PRC government surreptitiously open and operate an illegal MPS police station on U.S. soil.
“The PRC, through its repressive security apparatus, established a secret physical presence in New York City to monitor and intimidate dissidents and those critical of its government,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “The PRC’s actions go far beyond the bounds of acceptable nation-state conduct. We will resolutely defend the freedoms of all those living in our country from the threat of authoritarian repression.”
“This prosecution reveals the Chinese government’s flagrant violation of our nation’s sovereignty by establishing a secret police station in the middle of New York City,” said U.S. Attorney Breon Peace for the Eastern District of New York. “As alleged, the defendants and their co-conspirators were tasked with doing the PRC’s bidding, including helping locate a Chinese dissident living in the United States, and obstructed our investigation by deleting their communications. Such a police station has no place here in New York City – or any American community.”
“It is simply outrageous that China’s Ministry of Public Security thinks it can get away with establishing a secret, illegal police station on U.S. soil to aid its efforts to export repression and subvert our rule of law,” said Acting Assistant Director Kurt Ronnow of the FBI Counterintelligence Division. “This case serves as a powerful reminder that the People’s Republic of China will stop at nothing to bend people to their will and silence messages they don’t want anyone to hear. The FBI is dedicated to protecting everyone in the United States against efforts to undermine our democratic freedoms, and we’ll hold any state actors – and those who help them – accountable for breaking our laws.”
Before helping to open the police station in early 2022, Lu had a longstanding relationship of trust with PRC law enforcement, including the MPS. Since 2015, and through the operation of the secret police station, Lu was tasked with carrying out various activities, including to assist the PRC government’s repressive activities on U.S. soil:
- In 2015, during PRC President Xi Jinping’s visit to the United States, Lu participated in counterprotests in Washington, D.C,. against members of a religion that is forbidden under PRC law. A deputy director of the MPS awarded Lu a plaque for the work he performed on behalf of the PRC government.
- In 2018, Lu was enlisted in efforts to cause a purported PRC fugitive to return to the PRC. The victim reported being repeatedly harassed to return to the PRC, including through threats of violence made to the victim and the victim’s family in the United States and in the PRC.
- In 2022, the MPS Official sought Lu’s assistance in locating an individual living in California who is a pro-democracy activist. In turn, Lu enlisted the help of another coconspirator. Later, when confronted by the FBI about these conversations, Lu denied that they occurred.
In October 2022, the FBI conducted a judicially authorized search of the illegal police station. In connection with the search, FBI agents interviewed both Lu and Chen and seized their phones. In reviewing the contents of these phones, FBI agents observed that communications between Lu and Chen, on the one hand, and the MPS Official, on the other, appeared to have been deleted. In subsequent consensual interviews, Lu and Chen admitted to the FBI that they had deleted their communications with the MPS Official after learning about the ongoing FBI investigation, thus preventing the FBI from learning the full extent of the MPS’s directions for the overseas police station.
If convicted of conspiring to act as agents of the PRC, the defendants face a maximum sentence of five years in prison. The obstruction of justice charge carries a maximum sentence of 20 years in prison.
The FBI New York Field Office investigated the case.
Assistant U.S. Attorneys Alexander A. Solomon and Antoinette N. Rangel for the Eastern District of New York, and Trial Attorney Scott A. Claffee of the National Security Division’s Counterintelligence and Export Control Section are prosecuting the case.
The FBI has created a website for victims to report efforts by foreign governments to stalk, intimidate, or assault people in the United States. If you believe that you are or have been a victim of transnational repression, please visit: www.fbi.gov/investigate/counterintelligence/transnational-repression.
The charges in the complaint are merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Eight Chinese Government Officials Charged with Directing Employee of a U.S. Telecommunications Company to Remove Chinese Dissidents from Company's PlatformRead the Press Release
Today, an amended complaint was unsealed charging a total of 10 defendants, including a former executive of a U.S. telecommunications company (Company-1) who worked in the People’s Republic of China (PRC), six officers of the PRC Ministry of Public Security (MPS), two officials with the Cyberspace Administration of China (CAC), and one other civilian with conspiracy to commit interstate harassment and unlawful conspiracy to transfer means of identification. All the defendants are believed to reside in the PRC and remain at large.
Carolyn Pokorny, First Assistant United States Attorney for the Eastern District of New York[1]; Matthew G. Olsen, Assistant Attorney General of the Justice Department’s National Security Division; and David Sundberg, Assistant Director-in-Charge, Federal Bureau of Investigation, Washington Field Office (FBI), announced the charges.
“The amended complaint charging a former PRC-based employee of a U.S. telecommunications company illustrates the insider threat faced by U.S. companies operating in the PRC,” stated First Assistant United States Attorney Pokorny, who thanked Company-1 for its cooperation in the government’s investigation. “As alleged, Julien Jin and his co-conspirators in the Ministry of Public Security and Cyberspace Administration of China weaponized the U.S. telecommunications company he worked for to intimidate and silence dissenters, and enforce PRC law to the detriment of Chinese activists in New York, among other places, who had sought refuge in this country to peacefully express their pro-democracy views.”
“These cases demonstrate the lengths the PRC government will go to silence and harass U.S. persons who exercise their fundamental rights to speak out against PRC oppression, including by unlawfully exploiting a U.S.-based technology company,” stated Assistant Attorney General Olsen. “These actions violate our laws and are an affront to our democratic values and basic human rights.”
“These cases demonstrate that the Chinese Communist Party, once again, attempted to intimidate, harass, and suppress Chinese dissidents in the United States,” stated FBI Assistant Director-in-Charge Sundberg. “In the U.S., freedom of speech is a cornerstone of our democracy, and the FBI will work tirelessly to defend everyone's right to speak freely without fear of retribution from the CCP. These complex investigations revealed an MPS-wide effort to repress individuals by using a U.S. communications platform and fake social media accounts to censor political and religious speech.”
As alleged in the amended complaint, ten individuals, including a former PRC-based Company-1 executive, six MPS officers, and two officials with the Cyberspace Administration of China (CAC), are charged with conspiracy to commit interstate harassment and unlawful conspiracy to transfer means of identification.
In December 2020, the Department first announced charges against Julien Jin in connection with his efforts to disrupt a series of meetings on the Company-1 platform held in May and June 2020 commemorating the 1989 Tiananmen Square Massacre. Julien Jin served as Company-1’s primary liaison with PRC government law enforcement and intelligence services. In that capacity, he regularly responded to requests from the PRC government to terminate meetings and block users on Company-1’s video communications platform.
As detailed in the original complaint, Jin and others conspired to use Company-1’s U.S. systems to censor the political and religious speech of individuals located in the United States and elsewhere at the direction of the PRC government. For example, Jin and others disrupted meetings held on the Company-1 platform to discuss politically sensitive topics unacceptable to the PRC government – including the Tiananmen Square Massacre. Jin and his co-conspirators fabricated evidence of purported misconduct to cause U.S.-based employees of Company-1 to terminate the meetings.
The allegations in the amended complaint reveal that Jin worked directly with and took orders from defendants at the MPS and the CAC to disrupt meetings on the Company-1 platform and that the co-defendants had targeted U.S.-based dissidents’ speech on Company-1’s platform since 2018.
Starting in 2018, Jin and his co-defendants repeatedly sought to terminate video chat meetings organized by a Chinese dissident residing in New York City who has been a vocal critic of the PRC government and the Chinese Communist party. After the CAC requested that Company-1 terminate the dissident’s meetings on the Company-1 platform, Jin worked to identify all accounts associated with the dissident, caused meetings related to the dissident to be hosted in a “quarantine zone” – that is, on a server with known lags in response time – and later worked to block all accounts associated with the dissident. Similarly, in 2019, Jin collaborated with the MPS and CAC to block accounts seeking to commemorate the Tiananmen Square Massacre.
The charges in the amended complaint are allegations, and the defendants are presumed innocent unless and until proven guilty.
The government’s case is being handled by the Office’s National Security and Cybercrime Section. Assistant U.S. Attorneys Alexander A. Solomon, Ian C. Richardson, Nicholas J. Moscow and Jessica K. Weigel of the United States Attorney’s Office for the Eastern District of New York, with Trial Attorney Scott A. Claffee of the National Security Division’s Counterintelligence and Export Control Section are in charge of the prosecution.
The FBI has created a website for victims to report efforts by foreign governments to stalk, intimidate, or assault people in the United States. Please visit: www.fbi.gov/investigate/counterintelligence/transnational-repression.
The Defendants:
JIN XINJIANG (also known as “Julien Jin”)
Age: 42
PEOPLE’S REPUBLIC OF CHINACHEN YUANYUAN (陈媛媛)
Age: Unknown
PEOPLE’S REPUBLIC OF CHINAFU YIBIN (傅一彬)
Age: 39
PEOPLE’S REPUBLIC OF CHINAHUANG YIWEN (黄奕雯) also known as “Nicole Huang”
Age: 25
PEOPLE’S REPUBLIC OF CHINAJIN TAO (金涛)
Age: Unknown
PEOPLE’S REPUBLIC OF CHINALIU ZHIYANG (刘智洋)
Age: 43
PEOPLE’S REPUBLIC OF CHINASHEN ZHENHUA (沈振华)
Age: 41
PEOPLE’S REPUBLIC OF CHINASONG GUORONG (宋国荣)
Age: 43
PEOPLE’S REPUBLIC OF CHINATIAN XINNING (田心宁)
Age: Unknown
PEOPLE’S REPUBLIC OF CHINAXU WEI (徐威)
Age: 35
PEOPLE’S REPUBLIC OF CHINA[1] U.S. Attorney Breon Peace for the Eastern District of New York is recused from and has not participated in this case.
34 Officers of People's Republic of China National Police Charged with Perpetrating Transnational Repression Scheme Targeting U.S. ResidentsRead the Press Release
Today, a complaint was unsealed in federal court in Brooklyn charging 34 officers of the national police of the People’s Republic of China (PRC) – the Ministry of Public Security (MPS) – with harassing Chinese nationals residing in the New York metropolitan area and elsewhere in the United States. The defendants allegedly perpetrated transnational repression schemes targeting U.S. residents whose political views and actions are disfavored by the PRC government, such as advocating for democracy in the PRC. All the defendants are believed to reside in the PRC, and they remain at large.
Breon Peace, United States Attorney for the Eastern District of New York; Matthew G. Olsen, Assistant Attorney General of the Justice Department’s National Security Division; Kurt Ronnow, Acting Assistant Director, Federal Bureau of Investigation, Counterintelligence Division (FBI), and David Sundberg, Assistant Director-in-Charge, FBI, announced the charges.
“As alleged, the Chinese government deploys an elite task force of its national police—the 912 Special Project Working Group—as a troll farm to attack Chinese dissidents in our country for exercising free speech in a manner that the PRC government disfavors, and spread disinformation and propaganda to sow divisions within the United States,” stated United States Attorney Peace. “I commend the investigative team for comprehensively revealing the insidiousness of a state-directed criminal scheme directed at residents of the United States.”
“These cases demonstrate the lengths the PRC government will go to silence and harass U.S. persons who exercise their fundamental rights to speak out against PRC oppression, including by unlawfully exploiting a U.S.-based technology company,” stated Assistant Attorney General Olsen. “These actions violate our laws and are an affront to our democratic values and basic human rights.”
“China’s Ministry of Public Security used operatives to target people of Chinese descent who had the courage to speak out against the Chinese Communist Party – in one case by covertly spreading propaganda to undermine confidence in our democratic processes and, in another, by suppressing U.S. video conferencing users’ free speech,” stated FBI Acting Assistant Director Ronnow. “We aren’t going to tolerate CCP repression – its efforts to threaten, harass, and intimidate people – here in the United States. The FBI will continue to confront the Chinese government’s efforts to violate our laws and repress the rights and freedoms of people in our country.”
“These cases demonstrate that the Chinese Communist Party, once again, attempted to intimidate, harass, and suppress Chinese dissidents in the United States,” stated FBI Assistant Director-in-Charge Sundberg. “In the U.S., the freedom of speech is a cornerstone of our democracy, and the FBI will work tirelessly to defend everyone's right to speak freely without fear of retribution from the CCP. These complex investigations revealed an MPS-wide effort to repress individuals by using the U.S. communications platform and fake social media accounts to censor political and religious speech.”
As alleged, the officers are or were assigned to a task force called the “912 Special Project Working Group” (the Group) and worked out of an MPS facility in Beijing. The purpose of the Group is to influence and shape public perceptions of the PRC government, the CCP, and its leaders in the United States and around the world. The Group carries out this mission by using a host of accounts created under false names on multiple social media platforms to promote narratives that portray the PRC government and the Chinese Communist Party (CCP) in a favorable light, while criticizing and attacking their perceived adversaries, including the United States, and Chinese pro-democracy activists located throughout the world, including in the United States. As alleged, the defendants carried out this mission in part through a campaign of threats, harassment and intimidation directed at critics of the PRC government and the CCP in the United States and around the world.
The complaint alleges that members of the Group created thousands of fake online personas on social media sites, including Twitter, to target Chinese democracy activists and critics of the CCP through online harassment and threats. These online personas also disseminate official PRC government propaganda and narratives to counter and overwhelm the critical speech of the Chinese activists. The topics of the propaganda and official narratives are directed by MPS headquarters, and have included the advantages of the PRC’s CCP-dominated political system over democracy, U.S. domestic and foreign policy, human rights issues in Hong Kong and Xinjiang Province, the Russian invasion of Ukraine, civil unrest following the murder of George Floyd and the COVID-19 pandemic.
As further alleged, the investigation has obtained a policy guide issued to new Group members for detailing how to create and maintain fake social media accounts through temporary email addresses; posting official PRC government content; and interacting with other online users to avoid the appearance that the Group accounts are “flooding” a given social media platform.
Some of these online personas purport to be U.S. persons, giving U.S. users of social media platforms the false impression that individuals located in the United States advocate positions and policies favored by the PRC government and the CCP. The Group tracks the performance of the MPS officers assigned to the Group and rewards Group members who successfully operate multiple online personas without detection by the social media companies who host the platforms or by other users of the platforms.
The investigation has also uncovered official MPS directions to Group members to compose articles and videos based on certain themes targeting, for example, the activities of Chinese pro-democracy activists located abroad or the policies of the U.S. government. As alleged, the Group executed a standing order from MPS headquarters to harass a well-known critic of the PRC government and the CCP (Victim-1) by using a host of Group-controlled social media accounts to, among other things, make death threats and demand that U.S. authorities arrest Victim-1.
In addition, Group members took repeated affirmative actions to have Chinese dissidents and their meetings interfered with on the platform of Company-1. For example, Group members disrupted a pro-democracy activist’s efforts to commemorate the Tiananmen Square Massacre through a videoconference meeting by posting threats against the participants through the platform’s chat function. In another Company-1 videoconference on the topic of countering communism organized by a Chinese pro-democracy activist, Group members flooded the videoconference and drowned out the meeting with loud music, vulgar screams and threats directed at the pro-democracy participants.
The charges in the complaint are allegations, and the defendants are presumed innocent unless and until proven guilty.
The government’s case is being handled by the Office’s National Security and Cybercrime Section. Assistant United States Attorneys Alexander A. Solomon, Ian C. Richardson, Nicholas J. Moscow, and Jessica K. Weigel of the Eastern District of New York with assistance from Trial Attorney Scott A. Claffee of the National Security Division’s Counterintelligence and Export Control Section, are in charge of the prosecution.
The FBI has created a website for victims to report efforts by foreign governments to stalk, intimidate, or assault people in the United States. If you believe that you are or have been a victim of transnational repression, please visit https://www.fbi.gov/investigate/counterintelligence/transnational-repression.
The Defendants:
BAI YUNPENG (白云鹏)
Age: 31CHEN ZHICHEN (陈之琛)
Age: 26GAO CAINAN (高彩楠)
GAO HONGTING (高宏亭)
Age: 35HU XIAOHUI (呼啸慧)
Age: 32HUANG CHUNHUI (黄春晖)
Age: 37JIN YI (金乙)
Age: 32JU QIANG (居强)
Age: 32LI BOLUN (李博伦)
Age: 42LI XUAN (李轩)
Age: 31LI XUEYANG (李雪阳)
Age: 31LI ZHEFENG (李哲峰)
LIANG SHUANG (梁爽)
Age: 39LIN YUQIONG (林玉琼) (also known as “Lin Huishan (林慧姗),”)
Age: 35LIU ZHAOXI (刘朝夕)
Age: 35MIAO SHIHUI (苗世辉)
Age: 34SHI LIANGTIAN (史粮田)
Age: 29SONG YANG (I) (宋杨)
Age: 43SONG YANG (II) (宋阳)
TAN JINYAN (覃金燕)
Age: 43WANG CHUNJIE (王春杰)
WANG SHIPENG (王士朋)
Age: 37WEN JIANXUN (温建勋)
XI SHUO (西硕)
Age: 34XI YUE (袭岳) (also known as “Qi Dong (齐栋),”)
Age: 36XU YANAN (徐亚楠)
Age: 32 or 33XU ZHEN (徐震)
Age: 29XUE WENFENG (薛文峰) (also known as “Feng Xu (徐丰),”)
Age: 41YANG DALIN (杨大林)
Age: 34YANG MIAO (杨淼)
Age: 30 or 31YIN YINA (尹贻娜)
Age: 33YU MIAO (余苗)
Age: 38 or 39ZHANG DI (张迪)
ZHOU GUOQIANG (周国强)
Age: 52Son of Murder Victim and a Co-Conspirator Sentenced to Life in Prison for Murder-for-Hire Committed at McDonald's Drive-ThruRead the Press Release
Earlier today, at the federal courthouse in Brooklyn, Anthony Zottola, Sr. and Himen Ross were sentenced by United States District Judge Hector Gonzalez to mandatory life imprisonment plus 112 years for their roles in the October 4, 2018 killing of 71-year-old Sylvester Zottola, the father of Anthony Zottola, Sr. The additional years represent 41 years for Salvatore Zottola’s age when he was shot and 71 years for Sylvester Zottola’s age when he was killed. In October 2022, following a six-week trial, a federal jury found the defendants guilty of murder-for-hire, conspiracy to commit murder-for-hire, and firearms offenses.
Breon Peace, United States Attorney for the Eastern District of New York and Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI) announced the sentence.
“Over the course of more than a year, the elderly victim, Sylvester Zottola, was stalked, beaten, and stabbed, never knowing who orchestrated the attacks. It was his own son, who was so determined to control the family’s lucrative real estate business, that he hired a gang of hit men to murder his father,” stated United States Attorney Peace. “For sentencing his father to a violent death, Anthony Zottola and his co-defendant will spend the rest of their lives in prison. I commend our prosecutors, the FBI Special Agents and NYPD detectives for their tremendous investigative work solving this cold-blooded crime and bringing the defendants to justice.”
“Today’s sentence justly punishes Mr. Zottola and Mr. Ross to life imprisonment for their roles in the heartless murder of Sylvester Zottola. The FBI and the NYPD worked relentlessly to investigate this case and ensure the defendants paid the price for their senseless actions. Today’s result is a direct reflection of their effort, as well as that of the skilled and dedicated professionals from the Eastern District of New York who prosecuted the case,” stated Assistant Director-in-Charge Driscoll.
Sylvester Zottola controlled a residential real estate portfolio consisting of multi-family rental properties that was valued at tens of millions of dollars at the time of his death. Defendant Anthony Zottola helped manage his father Sylvester Zottola’s real estate business by maintaining the properties, collecting rent, and helping to run A&S Maintenance, a company that was jointly owned by Anthony and his brother Salvatore Zottola. Anthony Zottola plotted to kill his father and his brother so that he could take control of the family business.
As proven at trial, Anthony Zottola hired co-conspirator Bushawn Shelton to kill his father and his brother, Salvatore. Shelton recruited others to commit the murders, and together they engaged in a year-long conspiracy to carry out a series of violent attacks against Sylvester and Salvatore Zottola. Among other attempts, on November 26, 2017, Sylvester Zottola was menaced at gunpoint by a masked individual. On December 27, 2017, three men invaded Sylvester Zottola’s residence, struck him on the head with a gun, stabbed him multiple times, and slashed his throat. Zottola survived the attack. Then on July 11, 2018, a gunman shot Salvatore Zottola in the head, chest, and hand in front of his residence. Zottola survived the shooting.
The conspirators placed a tracking device on Sylvester Zottola’s car, allowing Ross to track him to a McDonald’s restaurant on Webster Avenue in the Bronx where Ross fatally shot the victim multiple times while the victim waited to pick up a cup of coffee in the drive-through. Ross and Shelton exchanged texts immediately after the hit, and then Shelton and Anthony Zottola exchanged texts, in which Anthony was informed that his father had just been murdered. Shelton texted Anthony Zottola: “Can we party today or tomorrow?” Anthony Zottola assured Shelton that he would have Shelton’s payment for carrying out the murder ready soon: “I have the cases of water in a day or so.” A photograph later recovered from one of Shelton’s cellular telephones shows a cardboard box of bottled water, as well as over $200,000 in banded currency.
Shelton pleaded guilty in August 2022 to murder-for-hire conspiracy and murder-for-hire. He is awaiting sentencing. Co-defendants Herman Blanco, Arthur Codner, Jason Cummings, and Branden Peterson previously pleaded guilty and were sentenced to 240 months’ imprisonment, 228 months’ imprisonment, 204 months’ imprisonment, and 192 months’ imprisonment, respectively.
The government’s case is being handled by the Office’s Organized Crime and Gangs Section. Assistant United States Attorneys Kayla C. Bensing, Emily J. Dean, Devon Lash, and Andrew M. Roddin are in charge of the prosecution, with the assistance of paralegal specialist Brittany Wissel. Assistant United States Attorney Brian Morris assisted with forfeiture matters.
The Defendants:
HIMEN ROSS (also known as “Ace” and “A Boggie”)
Age: 37
Bronx, New YorkANTHONY ZOTTOLA, SR.
Age: 45
Larchmont, New YorkDefendants Who Previously Pleaded Guilty:
HERMAN BLANCO (also known as “Taliban” and “L”)
Age: 38
Bronx, New YorkARTHUR CODNER (also known as “Feddi,” “Feddi Bossgod,” and “Scary”)
Age: 34
New Hampton, New YorkJASON CUMMINGS (also known as “The Hat” and “Stacks”)
Age: 34
Brooklyn, New YorkKALIK MCFARLANE (also known as “Dottkom” and “Dot”)
Age: 40
Brooklyn, New YorkBUSHAWN SHELTON (also known as “Shelz”)
Age: 38
Brooklyn, New YorkJULIAN SNIPE (also known as “Biz” and “Bizzzy”)
Age: 37
Bronx, New YorkE.D.N.Y. Docket No. 18-CR-609 (S-3) (HG)
Eight Crips Gang Members and Associates Indicted for Racketeering and Numerous Violent Crimes on Long IslandRead the Press Release
Earlier today, in federal court in Central Islip, a 59-count indictment was unsealed charging eight members and associates of a violent subset of the Crips street gang known as the Insane Crip Gang or “ICG,” with various offenses including racketeering, conspiracy to commit murder, attempted murder, and firearms offenses, as well as fraud schemes.
The indictment charges seven defendants with racketeering and conspiracy to commit murder; six defendants are charged with multiple attempted murders, assaults, and related firearms offenses; four defendants are charged in connection with their respective roles in three murders committed in Nassau County between 2016 and 2021. Six defendants were taken into custody this morning in New York and will be arraigned this afternoon before United States Magistrate Judge Arlene R. Lindsay. A seventh defendant, Jonathan Gonzalez, was arrested in North Carolina and will be arraigned in federal court in Winston-Salem this afternoon. One additional defendant remains at large.
Breon Peace, United States Attorney for the Eastern District of New York; Anne T. Donnelly, District Attorney, Nassau County District Attorney’s Office (NCDA); Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI); and Patrick J. Ryder, Commissioner, Nassau County Police Department (NCPD), announced the arrests and indictment.
“As alleged, the defendants participated in a staggering amount of extreme violence that shattered lives, maimed rivals and endangered countless innocent bystanders on Long Island. As of today, after three brutal murders, over a dozen shootings, hundreds of thousands of dollars of fraud, their chokehold of fear and violence over our community is finally over,” stated United States Attorney Peace. “This Office and our law enforcement partners will continue working tirelessly to protect our communities from gang violence and fraud.”
Mr. Peace expressed his appreciation to the FBI’s Long Island Gang Task Force and the Nassau County Police Department’s Homicide Squad and Gang Investigation Squad for their tireless efforts to bring these violent offenders to justice. Mr. Peace also thanked the Bureau of Alcohol, Tobacco, Firearms and Explosives and the United States Department of Labor, Office of the Inspector General for their efforts in assisting the investigation.
NCDA Donnelly stated: “This Crips faction has wreaked havoc in the Hempstead area for nearly a decade, killing perceived rivals and innocent bystanders alike. In just two years, Akeem Chambers allegedly participated in two homicides and more than a dozen shootings. This gang celebrated its violence on social media, using that same social media as a recruiting tool, and financed its activities by systematically stealing from government benefit programs designed to aid the unemployed and those adversely impacted by COVID. Dismantling gang networks is incredibly difficult work and I thank my staff and our partners at the U.S. Attorney’s Office, the FBI and NCPD for the collaborative spirit used during this year-long investigation.”
“The defendants allegedly engaged in multiple acts of gang violence, bringing undue fear and harm to the streets of our neighborhoods,” stated FBI Assistant Director-in-Charge Driscoll. “Gang violence menacing communities is something no one should have to endure; people have the right to feel safe where they live. Today’s indictment serves as a reminder that the FBI’s Long Island Gang Task Force is persistent in its efforts to keep the neighborhoods of Long Island safe and free of violent crime.”
“This multi-agency law enforcement investigation has led to the arrest of numerous Crips gang members for homicides, shootings and racketeering. These defendants have terrorized our communities in Nassau County and now our residents can show a sign of relief that these criminals will no longer be able to inflict harm in our neighborhoods. I would like to congratulate all of the dedicated law enforcement professionals for their hard work and diligence during the course of this investigation. A job well done by all,” stated NCPD Commissioner Ryder.
As alleged in the indictment and court filings, the defendants engaged in a pattern of gang violence which resulted in dozens of gang-related shootings, as well as multiple murders in Nassau County between 2015 and the present. The defendants, as part of their membership and association with the ICG, together with others, committed dozens of violent crimes in and around Hempstead, New York, including shootings, assaults, murders, robberies, and kidnappings.
Akeem Chambers is charged with participating in over a dozen shootings and two homicides between 2020 and 2022, including the August 1, 2020, murder of 28-year-old Thiasia Williams in Hempstead, New York. In that incident, Chambers, along with Rob Pardo and another associate of the ICG learned of a party on Martin Luther King Drive in Hempstead that was going to be attended by members of the rival D Block Bloods. Chambers and the others decided to commit a drive-by shooting of the party. Jonathan Gonzalez was enlisted to be the driver for the shooting. Chambers and the other associate, each armed with a 9mm firearm, planned to shoot the rivals, while Rob Pardo remained in the area to assist their flight from the scene of the crime. As Chambers and the others drove down Martin Luther King Drive shortly after midnight on August 1, 2020, they fired at least eight times at party goers, striking and killing Thiasia Williams, an innocent bystander who was sitting in her car outside the party to pick up a friend. Another innocent female bystander was also struck by gunfire and suffered a non-life-threatening gunshot wound to her leg.
Chambers was also charged with his role in the 2021 robbery and murder of James Diamond in Freeport, New York. In that incident, Chambers, together with others, planned to rob Diamond of a large sum of cash. Chambers and another individual, both armed with firearms, approached the victim and another man, and attempted to rob them at gunpoint. During the course of the robbery, Chambers’ coconspirator shot and killed Diamond. Chambers and several accomplices were indicted and arrested for this murder by Nassau County authorities.
Notably, Jalen Rogers, who is charged with over a half-dozen violent crimes ranging from attempted murder and assault to attempted kidnapping, committed at least three of those violent crimes while he was wearing a court-ordered GPS ankle monitor imposed as a condition of supervision. In each of those shootings, records for Rogers’ ankle monitor place him at the scene of the crime at the time of the shootings.
Jonathan Vazquez is charged with the November 19, 2016 murder of 19 year-old Joecephus Vanable in Hempstead, New York. Vanable, an individual who was repeatedly targeted by the ICG in Hempstead, was shot and killed on a Hempstead street by Vazquez. In the wake of Vanable’s murder, members and associates of the ICG took to social media to brag about the killing. In addition, the gang boasted about the killing in rap videos and graffiti around Hempstead. In addition to violence directed at rivals, Vazquez is also charged with attempted murder for opening fire on two Nassau County Police Officers who were attempting to conduct a stop of his vehicle. Vazquez is also charged with the gunpoint robbery of a woman in Levittown, New York and several other gang-related shootings.
To finance their criminal conduct and enrich themselves, the defendants and other ICG members and associates engaged in a wide array of fraud schemes, including defrauding state unemployment systems, the federal Covid-19 Paycheck Protection Program (PPP), various forms of identity theft and bank fraud. The frauds perpetrated by ICG members and associates netted the gang’s members and associates hundreds of thousands of dollars since early 2020. For example, the ICG stole approximately $200,000 from the State of California by submitting fraudulent unemployment benefits applications. In addition to their fraud schemes, the defendants regularly purchased, maintained and sold a wide array of firearms. The investigation linked a total of 26 guns to the defendants and their associates; 14 of the 26 guns were linked to multiple shootings committed by the defendants or other ICG members.
Law enforcement executed multiple search warrants this morning and recovered a 9mm, fully-loaded semiautomatic pistol and a .45 caliber semiautomatic pistol with an extended magazine and additional ammunition.
The charges in the indictment are allegations, and the defendants are presumed to be innocent unless and until proven guilty. If convicted, Chambers, Dindyal, Gonzalez, Lesly Pardo, Rogers, and Vazquez face up to a maximum sentence of life imprisonment. Pardo faces up to 20 years’ imprisonment.
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. The Department of Justice reinvigorated PSN in 2017 as part of its renewed focus on targeting violent criminals, directing all U.S. Attorneys’ Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorneys Nicole Boeckmann, Michael Maffei and Samantha Alessi are in charge of the prosecution, with the assistance of Paralegal Specialist Kerry Ucci and Automated Litigation Specialist Michael Compitello.
This prosecution is the product of investigations led by the FBI’s Long Island Gang Task Force, which is comprised of agents and officers of the FBI, Suffolk County Police Department, NCPD, Nassau County Sheriff’s Department, Suffolk County Probation Office, Suffolk County Sheriff’s Office, New York State Police, Hempstead Police Department, Rockville Centre Police Department, and the NCDA.
The Defendants:
Akeem Chambers, also known as “Luca”
Age: 21
Uniondale, New YorkJAHZIAH DINDYAL, also known as “JZ” and “Nine”
Age: 19
Hempstead, New YorkJonathan Gonzalez, also known as “Grizz”
Age: 23
Greensboro, North CarolinaLESLY PARDO, also known as “Chop” and “Chopavelli”
Age: 26
Mount Sinai, New YorkROB PARDO, also known as “Static”
Age: 25
Mount Sinai, New YorkJALEN ROGERS, also known as “Drama” and “Moonie”
Age: 20
Hempstead, New YorkJONATHAN VAZQUEZ, also known as “Chulo” and “Clutch”
Age: 21
Hempstead, New YorkE.D.N.Y. Docket No. 23-CR-157 (JMA)