Eastern District of New York
Press releases recorded for this federal judicial district.
Former Investment Banker and Registered Broker Charged with Operating Cryptocurrency Investment Fraud SchemeRead the Press Release
Today, in federal court in Brooklyn, Rashawn Russell, a former investment banker and registered broker, will be arraigned on an indictment charging him with perpetrating a cryptocurrency investment fraud scheme. Russell was arrested yesterday in Brooklyn and will be arraigned this afternoon before United States Magistrate Judge Ramon E. Reyes, Jr.
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 Eric Shen, Inspector-in-Charge, U.S. Postal Inspection Service, Criminal Investigations Group (USPIS), announced the arrest and indictment.
“As alleged, Russell turned the demand for cryptocurrency investments into a scheme to defraud numerous investors in order to fund his lifestyle,” stated United States Attorney Peace. “This Office will continue to aggressively pursue fraudsters perpetrating these schemes against investors in the digital asset markets.”
As alleged in court documents, Russell engaged in a scheme to defraud multiple investors by falsely promising that their money would be used for cryptocurrency investments that would generate large—and sometimes “guaranteed”—returns. In truth, much of the investors’ money was misappropriated by Russell and used for his personal benefit, to gamble, and to repay other investors. Russell formerly worked as an investment banker and was a registered broker with the Financial Industry Regulatory Authority.
As part of the scheme, Russell lied to investors about the status of their investments and fabricated multiple documents that he sent to investors. As alleged, Russell sent one investor an altered image of a bank balance displayed on a bank website that purported to show Russell’s substantial liquidity. When another investor sought to recoup their investment, Russell never sent the money and instead sent the investor a fabricated bank wire transfer confirmation that purported to show the return of the investor’s money.
The charge in the indictment is an allegation and Russell is presumed innocent until proven guilty beyond a reasonable doubt. If convicted, he faces a maximum of 20 years in prison.
If you believe you are a victim in this case, please contact the Fraud Section’s Victim Witness Unit toll-free at (888) 549-3945 or by email at [email protected].
The government’s case is being handled by Assistant United States Attorney Drew Rolle from the Business and Securities Fraud Section of the United States Attorney’s Office for the Eastern District of New York and. Assistant Chief Scott Armstrong and Trial Attorney Kyle Crawford from of the Department of Justice’s Criminal Division, Fraud Section.
The Defendant:
RASHAWN RUSSELL
Age: 27
Brooklyn, New YorkE.D.N.Y. Docket No.: 23-CR-152 (HG)
Former Investment Banker and Registered Broker Arrested for Operating Cryptocurrency Investment Fraud SchemeRead the Press Release
A former investment banker, who was a registered broker with the Financial Industry Regulatory Authority, was arrested yesterday in Brooklyn, New York, on criminal charges related to his alleged role in operating a cryptocurrency investment fraud scheme.
According to court documents, Rashawn Russell, 27, of Brooklyn, New York, allegedly engaged in a scheme to defraud multiple investors by inducing them to invest with him based on false promises that, among other things, he would use their funds for cryptocurrency investments and that the investors would earn large – and sometimes guaranteed – returns from those investments. Russell allegedly misappropriated much of the investors’ assets and used them for his personal benefit, to gamble, and to repay other investors.
In addition, the indictment alleges that Russell repeatedly failed to repay investors’ principal investments and failed to provide investors with promised rates of return. After certain investors requested to be repaid their investments, Russell also allegedly falsely represented that he had wired them money.
Russell is charged with one count of wire fraud. If convicted, he faces a maximum penalty of 20 years in prison.
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, and Inspector in Charge Eric Shen of the U.S. Postal Inspection Service (USPIS) Criminal Investigations Group made the announcement.
The USPIS is investigating the case.
Trial Attorney Kyle Crawford and Assistant Chief Scott Armstrong of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Drew Rolle for the Eastern District of New York are prosecuting the case.
If you believe you are a victim in this case, please contact the Fraud Section’s Victim Witness Unit toll-free at (888) 549-3945 or by email at [email protected].
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Defendant Charged with Distributing Child Pornography and Sending Death Threats to a MinorRead the Press Release
Christian Brazoban, also known as “Bison,” will be arraigned this afternoon at the federal courthouse in Central Islip on an indictment charging him with distributing child pornography to a minor and sending death threats to a minor. Brazoban was arrested on March 15, 2023 on a complaint charging him with distributing child pornography. He was indicted on March 29, 2023 and has been detained pending trial. Today’s arraignment was be held before United States District Judge Joan M. Azrack.
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 Patrick J. Ryder, Commissioner, Nassau County Police Department (NCPD), announced the indictment.
“As alleged, the defendant traumatized a child by sending her graphic images of child sexual abuse and then went even further in threatening to kill the child after she told him to stop,” stated United States Attorney Peace. “The defendant’s actions demonstrate the dangers of sextortion directed to children on the Internet. I urge parents and caregivers to talk to their children about the dangers of communicating online with strangers and anyone who may exploit them.”
“HSI New York works tirelessly to protect children from sexual predators that lurk online behind the veil of social media platforms,” said Special Agent in Charge of Homeland Security Investigations New York, Ivan J. Arvelo. “Christian Brazoban is accused of despicable criminal acts that have victimized our most innocent, robbing them of their childhoods and interfering with their emotional and psychological development. HSI will do everything in its power and use every tool at its disposal to track down these heinous criminals and ensure that they are brought to justice. We are appealing to anyone who has awareness about this defendant’s alleged activities or past contacts to come forward. Please reach out to the toll-free Tip Line at 1-866-347-2423 or complete the online tip form. Both are staffed around the clock.”
As set forth in court filings, between approximately March 2021 and March 2023, the victim, a minor who resided in Nassau County, engaged in online communications, including video chats, with Brazoban. On March 3, 2023, Brazoban sent online messages to the victim that contained numerous images of child pornography, including images which depicted the sexual abuse of children between the ages of 3 and 11. When the victim told Brazoban to stop, he sent her additional online messages threatening to kill her and her family. For example, Brazoban wrote: “lil girl shot dead on Long Island”; “I’m thinkin I tie you and just beat you to death with a mallet.”
On March 15, 2023, HSI agents and NCPD officers executed a search warrant at the defendant’s Bronx residence and recovered a cellphone containing images of child pornography and threats that the defendant sent to the minor victim.
Anyone with information about sexual exploitation by Brazoban is asked to contact HSI at https://www.ice.gov/tipline or 1-866-DHS-2-ICE (866-347-2423).
The charges in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty.
If convicted of the charges, Brazoban faces a mandatory minimum term of 5 years’ imprisonment and up to 20 years in prison.
The government’s case is being prosecuted by Assistant United States Attorney Bradley T. King of the Long Island Criminal Division.
The Defendant:
CHRISTIAN BRAZOBAN, also known as “Bison”
Age: 24
Bronx, New YorkE.D.N.Y. Docket No. 23-CR-138 (JMA)
Estonian National Charged with Helping Russian Military Acquire U.S. Electronics, Including Radar Components; Sought-Computer Hacking SoftwareRead the Press Release
An eighteen-count indictment was unsealed today in Brooklyn charging Andrey Shevlyakov, an Estonian national, with conspiracy and other charges related to procuring U.S.-made electronics on behalf of the Russian government and military.
Shevlyakov was arrested on March 28, 2023 in Estonia. As alleged in the indictment and other court filings, at the time of his arrest, the Estonian seized inbound shipments addressed to Shevlyakov’s front companies, including one that contained approximately 130 kilograms (286 pounds) of radio equipment.
Breon Peace, United States Attorney for the Eastern District of New York, James Smith, Special Agent in Charge, FBI Houston and Trey McClish, Special Agent in Charge of the U.S. Department of Commerce, Bureau of Industry and Security – Office of Export Enforcement’s Dallas Field Office announced the charges.
“As alleged, for more than a decade, the defendant has been acquiring sensitive electronics from U.S. manufacturers on behalf of the Russian government, in defiance of U.S. export controls,” stated United States Attorney Peace. “Our Office will not relent in its efforts to stop those who unlawfully procure U.S. technology for Russia or any other sanctioned countries, entities or individuals.”
Mr. Peace expressed his appreciation for Task Force KleptoCapture, the Department of Justice’s Office of International Affairs, and the Estonian Internal Security Service (KAPO) for their valuable assistance.
“For years, Mr. Shevlyakov’s elaborate web of deceit allowed him to allegedly procure sensitive American-made electronics on behalf of the Russian military,” said FBI Houston Special Agent in Charge James Smith. “His illegal acquisitions of sophisticated U.S. technology endangered citizens in both Ukraine and the United States. FBI Houston will continue to work with our valued international partners, especially the Estonian Internal Security Service (KAPO), to investigate and disrupt actors who illicitly support the unprovoked invasion of Ukraine by Russian armed forces.”
“As these actions have proven, BIS will continue to hunt down and bring to justice those who harm our national security and illicitly supply the Russian regime,” said Special Agent in Charge McClish.
As alleged in the indictment and other court filings, Shevlyakov procured sensitive electronics from U.S. manufacturers on behalf of Russian end-users, including defense contractors and other Russian government agencies. Most of these items would have been unavailable to Russian end-users if ordered directly for shipment to Russia.
The items that Shevlyakov purchased included low-noise pre-scalers and synthesizers (used to conduct high-frequency communications) and analog-to-digital converters, which can be found in most defense systems that must respond to environmental conditions, including software-defined radio, avionics, missiles, and electronic warfare systems. Shevlyakov’s communications with Russia-based customers included explicit discussions of whether there were “military” goods in certain orders.
Shevlyakov also attempted to acquire computer hacking tools. In May 2020, one of Shevlyakov’s front companies exchanged messages with a Russia-based individual about acquiring a licensed copy of Metasploit Pro, a U.S.-made software tool that is used to penetrate computer networks. Metasploit is intended for use in assessing network vulnerabilities, but is also widely used by computer hackers. A license to use Metasploit Pro costs approximately $15,000. In the email, the individual asked Shevlyakov’s front company to acquire Metasploit and detailed a history of prior failed attempts to acquire the software through third parties in countries outside Russia. The individual added that the software was “dual use” and that accordingly, “sales to Russia are virtually impossible.” Thus, the individual said, “we cannot reveal the end user, nor can we identify ourselves.” On or about June 1, 2020, the front company email address wrote back, listing prices for different versions of Metasploit Pro.
To deliver his goods, Shevlyakov ran an intricate logistics operation involving frequent smuggling trips across the Russian border by himself and others. Shevlyakov engaged in this conduct despite being listed on a Department of Commerce-maintained list (the “Entity List”) that designates individuals and companies who are barred from exporting items from the United States without a license. Shevlyakov was added to the Entity List in 2012, after the U.S. government identified him as a procurement agent charged with pursuing U.S. technology for Russian government and military end users. Shevlyakov used false names and a web of front companies to evade the Entity List’s restrictions.
If convicted, the defendant faces a maximum of 20 years’ imprisonment. 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 Attorney Alexander Mindlin is in charge of the prosecution, along with Trial Attorney Matthew Anzaldi of the National Security Division’s Counterintelligence and Export Control Section, with assistance from Litigation Analyst Mary Clare McMahon. The Office thanks the Estonian authorities for their valuable support.
The Defendant:
ANDREY SHEVLYAKOV
Age: 45
Tallinn, EstoniaE.D.N.Y. Docket No. 22-CR-490 (RPK)
Leader of Armed Robbery Crew Targeting Pharmacies Sentenced to 14 Years in PrisonRead the Press Release
Earlier today, at the federal courthouse in Central Islip, Jordan Velez was sentenced by United States District Judge Joanna Seybert to 14 years’ imprisonment for his organizing role in the armed robberies of 10 pharmacies. Velez pleaded guilty to a Hobbs Act robbery conspiracy and firearm charges in October 2021.
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 Patrick J. Ryder, Commissioner, Nassau County Police Department (NCPD), announced the sentence.
“Jordan Velez recruited and directed a crew of robbers that put our citizens in grave danger when they entered numerous pharmacies wielding their semi-automatic weapons. They stole drugs and money and terrorized many victims.” stated United States Attorney Peace. “Today, Velez has been justly punished for these violent crimes.”
“Velez and his coconspirators brought violence and fear to multiple communities throughout the New York metropolitan area when they used semi-automatic weapons to rob pharmacies of money and prescription pills. As the sentence today shows, the FBI will ensure anyone willing to commit crimes of this nature faces consequences in the criminal justice system,” stated FBI Assistant Director-in-Charge Driscoll.
“Defendant Jordan Velez and his associates committed numerous pharmaceutical robberies from Nassau County to New Jersey while they were armed placing the public in danger. I would like to thank all of the dedicated law enforcement professionals from numerous agencies for a job well done. Hopefully Velez will receive an appropriate punishment upon sentencing which will keep him incarcerated so he is not a threat to the public,” said NCPD Commissioner Ryder.
Between February 2018 and May 2019, Velez participated in 10 separate armed robberies of pharmacies. During each robbery, acting on Velez’s orders, Velez’s co-conspirators donned masks and entered pharmacies in Long Island, Queens and New Jersey armed with semi-automatic weapons. They demanded prescription pills and money from the pharmacy’s employees. During a robbery that took place in April 2018, Velez’s crew duct-taped a victim inside a CVS pharmacy in Port Jefferson Station, New York. Velez and his crew stole more than $200,000 worth of prescription pills and money during their robbery spree. Co-defendants Ricky Torres and Steven Valenzuela previously pleaded guilty and were sentenced by Judge Seybert to 102 months’ imprisonment and 84 months’ imprisonment, respectively.
The Robberies
- February 17, 2018, CVS in Valley Stream, Long Island
- February 19, 2018, Walgreens in Bethpage, Long Island
- February 23, 2018, Walgreens in Linden, New Jersey
- March 7, 2018, Walgreens in South Ozone Park, Queens
- March 11, 2018, CVS in Queens Village, Queens
- March 15, 2018, CVS in Glen Cove, Long Island
- March 21, 2018, CVS in Rahway, New Jersey
- March 30, 2018, CVS in East Orange, New Jersey
- April 3, 2018, CVS in Port Jefferson Station, Long Island
- May 22, 2018, Walgreens in South Ozone Park, Queens
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:
JORDAN VELEZ
Age: 24
Flushing, QueensE.D.N.Y. Docket No. 18-CR-265 (S-2) (JS)
Social Media Influencer Douglass Mackey Convicted of Election Interference in 2016 Presidential RaceRead the Press Release
Douglass Mackey, also known as “Ricky Vaughn,” was convicted today by a federal jury in Brooklyn of the charge of Conspiracy Against Rights stemming from his scheme to deprive individuals of their constitutional right to vote. The verdict followed a one-week trial before United States District Judge Ann M. Donnelly. When sentenced, Mackey faces a maximum of 10 years in prison.
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 verdict.
“Mackey has been found guilty by a jury of his peers of attempting to deprive individuals from exercising their sacred right to vote for the candidate of their choice in the 2016 Presidential Election,” stated United States Attorney Peace. “Today’s verdict proves that the defendant’s fraudulent actions crossed a line into criminality and flatly rejects his cynical attempt to use the constitutional right of free speech as a shield for his scheme to subvert the ballot box and suppress the vote.”
In 2016, Mackey established an audience on Twitter with approximately 58,000 followers. A February 2016 analysis by the MIT Media Lab ranked Mackey as the 107th most important influencer of the then-upcoming Presidential Election.
As proven at trial, between September 2016 and November 2016, Mackey conspired with other influential Twitter users and with members of private online groups to use social media platforms, including Twitter, to disseminate fraudulent messages that encouraged supporters of presidential candidate Hillary Clinton to “vote” via text message or social media which, in reality, was legally invalid. For example, on November 1, 2016, in or around the same time that Mackey was sending tweets suggesting the importance of limiting “black turnout,” the defendant tweeted an image depicting an African American woman standing in front of an “African Americans for Hillary” sign. The ad stated: “Avoid the Line. Vote from Home,” “Text ‘Hillary’ to 59925,” and “Vote for Hillary and be a part of history.” The fine print at the bottom of the deceptive image stated: “Must be 18 or older to vote. One vote per person. Must be a legal citizen of the United States. Voting by text not available in Guam, Puerto Rico, Alaska or Hawaii. Paid for by Hillary For President 2016.” The tweet included the typed hashtag “#ImWithHer,” a slogan frequently used by Hillary Clinton. On or about and before Election Day 2016, at least 4,900 unique telephone numbers texted “Hillary” or some derivative to the 59925 text number, which had been used in multiple deceptive campaign images tweeted by Mackey and his co-conspirators.
Several hours after tweeting the first image, Mackey tweeted an image depicting a woman seated at a conference room typing a message on her cell phone. This deceptive image was written in Spanish and mimicked a font used by the Clinton campaign in authentic ads. The image also included a copy of the Clinton campaign’s logo and the “ImWithHer” hashtag.
The government’s case is being handled by the Office’s Public Integrity Section. Assistant United States Attorneys Erik D. Paulsen and F. Turner Buford of the Office’s Public Integrity Section, and Trial Attorney William J. Gullotta of the Department of Justice’s Public Integrity Section are in charge of the prosecution, with the assistance of Paralegal Specialist Shivani Parshad.
The Defendant:
DOUGLASS MACKEY
Age: 33
West Palm Beach, FloridaE.D.N.Y. Docket No. 21-CR-80 (AMD)
Brooklyn High School Teacher Sentenced to 20 Years' Imprisonment for Production of Child PornographyRead the Press Release
Jonathan Deutsch was sentenced today in federal court in Brooklyn by United States District Judge Frederic Block to 20 years in prison for four counts of sexual exploitation of a minor and six counts of attempted sexual exploitation of a minor. Deutsch is employed as a teacher by the New York City Department of Education, and immediately prior to his arrest, he was teaching at Leon M. Goldstein High School for the Sciences in Brooklyn. The defendant was convicted in June 2022 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, New York Field Office (FBI), and Keechant L. Sewell, Commissioner, New York City Police Department (NYPD), announced the sentence.
“The defendant will be incarcerated for many years and deservedly so because he is the most dangerous type of predator, a teacher who enjoys victimizing children. Instead of using his training and skills as a teacher to enrich children, he used those skills to gain the trust of minors in order to sexually exploit them,” stated United States Attorney Peace. “We will continue to do all that we can to protect our children from sexual exploitation.”
“Deutsch was convicted at trial of sexually exploiting children as young as 10-years old, and with today’s sentence, he learned the consequences of his depraved actions. He will rightfully serve a lengthy term in federal prison, where he will no longer pose a threat to our society’s most vulnerable members,” stated FBI Assistant Director-in-Charge Driscoll.
“Mr. Deutsch violated, in a truly reprehensible way, the sacred trust that exists between teachers and young people,” stated NYPD Commissioner Sewell. “Today’s sentencing sends an unequivocal message that the NYPD and our law enforcement partners will never tolerate the appalling acts of such criminal predators. I commend and thank all of the involved investigators at the city, state, and federal levels, and everyone at the office of the U.S. Attorney for the Eastern District and the Department of Justice Child Exploitation and Obscenity Section, for their critical efforts on this important case.”
As set forth in the government’s sentencing memorandum and related court proceedings, in 2016 and 2017, Deutsch used multiple Facebook accounts to meet minors online. In one of his Facebook accounts, Deutsch posed as a 33-year-old teacher from New York, and in another account, he posed as a 14-year-old boy. Deutsch joined Facebook groups frequented by LGBTQ+ minors who were struggling with their sexuality and gender identity. After meeting in groups, Deutsch directly messaged children to develop relationships with them. When chatting with children, the defendant flattered them to gain their trust, and he offered support, comfort and affirmation when they expressed sadness, insecurity or pain. Then, Deutsch engaged the children in hyper-sexual conversation and enticed them to engage in sexually explicit conduct so that he could get videos and photos of that conduct. He also sent minors sexual photos that he represented to be of himself. Ultimately, Deutsch requested and received sexually explicit images or videos from at least four children, ranging in age from 10 to 16 years old.
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 Civil Rights Section. Assistant United States Attorneys Megan E. Farrell and Rachel A. Bennek are in charge of the prosecution with the assistance of Paralegal Specialist Adam Bernard.
The Defendant:
JONATHAN DEUTSCH
Age: 39
Brooklyn, New YorkE.D.N.Y. Docket No. 18-CR-502 (S-1) (FB)
কুইন্স ম্যান রিয়েল এস্টেট জালিয়াতি স্কিমের জন্য দোষী সাব্যস্ত হয়েছেনRead the Press Release
আজকের আগে, ব্রুকলিনের ফেডারেল আদালতে, রাশিদুন বোখারী (Rashidun Bokhari) একটি কথিত রিয়েল এস্টেট বিনিয়োগ প্রকল্প থেকে উদ্ভূত ওয়্যার জালিয়াতির জন্য দোষী সাব্যস্ত হয়েছেন। বোখারী-কে 2022 সালের অক্টোবরে গ্রেপ্তার করা হয়েছিল। মার্কিন যুক্তরাষ্ট্রের জেলা জজ পামেলা কে. চেন (Pamela K. Chen)-এর সম্মুখে আজকের কার্যক্রম অনুষ্ঠিত হয়। দণ্ডিত হলে, বোখারী-কে 20 বছরের কারাদণ্ডের সম্মুখীন হতে হয়।
নিউ ইয়র্কের ইস্টার্ন ডিস্ট্রিক্টের ইউনাইটেড স্টেট অ্যাটর্নি ব্রিয়ন পিস দোষী সাব্যস্ত করার ঘোষণা দিয়েছেন।
কোর্ট ফাইলিংয়ে উল্লেখ করা হয়েছে, সেপ্টেম্বর 2015 এবং এপ্রিল 2018 এর মধ্যে, বোখারী ভুক্তভোগীকে লং আইল্যান্ড সিটি এবং কুইন্সের অ্যাস্টোরিয়াতে অবস্থিত চারটি ভিন্ন রিয়েল এস্টেট সম্পত্তিতে প্রায় 935,000 মার্কিন ডলার বিনিয়োগ করতে প্ররোচিত করেছিলেন। বোখারী মিথ্যা দাবি করেছেন যে কথিত রিয়েল এস্টেট লেনদেনে তার বিনিয়োগের বিনিময়ে, ভুক্তভোগী বিনিয়োগকারী সম্পত্তিতে 50 শতাংশ মালিকানা পাবেন। বোখারী রিয়েল এস্টেট লেনদেনের নথি জাল করেছেন যা তিনি ভুক্তভোগী বিনিয়োগকারীকে প্রদান করেছিলেন। প্রায় 1 মিলিয়ন মার্কিন ডলার পাওয়ার পরে, বিবাদী বিদেশে তহবিল স্থানান্তর, বন্ধকী এবং জীবন বিমায় পেমেন্ট এবং এটিএম থেকে নগদ উত্তোলন সহ তার নিজের ব্যক্তিগত ব্যবহারের জন্য অর্থ অপব্যবহার করেন। তার আবেদনের চুক্তির অংশ হিসাবে, বোখারী ভুক্তভোগীকে 935,000 মার্কিন ডলার পরিমাণ ক্ষতিপূরণ দিতে সম্মত হয়েছেন।
সরকারের তদন্তে আরো জানা গেছে যে 20 ডিসেম্বর 2020 এবং মে 2022 এর মধ্যে, বোখারী কুইন্সে আরো দুইজন ভুক্তভোগীকে প্রতারণার জন্য একটি পৃথক স্কিমে নিযুক্ত ছিলেন। তার আবেদন চুক্তির অংশ হিসাবে, বোখারী এই দুই ভুক্তভোগীকে 191,100 মার্কিন ডলার পরিমাণ ক্ষতিপূরণ দিতে সম্মত হয়েছেন।
বোখারী এর দ্বারা ভুক্তভোগীরা বাঙালি বংশোদ্ভূত এবং তিনি তার স্কিমের জন্য তাদের শেয়ার করা জাতিগত পটভূমিকে কাজে লাগিয়েছেন।
যারা মনে করেন যে তারা বোখারী এর দ্বারা সংঘটিত অপরাধের শিকার হয়েছেন, তাদেরকে মার্কিন যুক্তরাষ্ট্রের নিম্নোক্ত অ্যাটর্নি অফিসে যোগাযোগ করতে বলা হয়েছে এই ঠিকানায় https://www.justice.gov/usao-edny/report-crime
সরকারের মামলাটি ব্যবসা এবং সিকিউরিটিজ জালিয়াতি সেকশনের অফিস দ্বারা পরিচালিত হচ্ছে। যুক্তরাষ্ট্রের সহকারি অ্যাটর্নি লরেন বোম্যান (Lauren Bowman) প্রসিকিউশনের দায়িত্বে রয়েছেন এবং তদন্তের নেতৃত্বে ছিলেন নিউ ইয়র্কের ইস্টার্ন ডিস্ট্রিক্টের বিশেষ এজেন্ট মার্টিন সুলিভান (Martin Sullivan)।
বিবাদী:
রাশিদুন বোখারী
বয়স 57
অ্যাস্টোরিয়া, কুইন্স (Astoria, Queens)
E.D.N.Y. Docket No. 23-CR-58 (PKC)
Total Orthopedics & Sports Medicine Agrees to Provide Sign Language Interpreters in Settlement of Claim that it Violated the Americans with Disabilities ActRead the Press Release
Breon Peace, United States Attorney for the Eastern District of New York, announced today that an agreement has been reached with Orthopaedics, Spine, and Sports Medicine, LLC, d/b/a Total Orthopedics & Sports Medicine (Total Orthopedics), under Title III of the Americans with Disabilities Act, to resolve allegations that Total Orthopedics failed to comply with its communications obligations for individuals who are deaf or hard of hearing. Title III of the ADA prohibits discrimination against people with disabilities in places of public accommodations such as medical centers. Individuals who are deaf or hard of hearing fall within the protection of the ADA.
Total Orthopedics is an orthopedic clinic with locations throughout New York City, New Jersey, and on Long Island. The settlement resolves claims made by an individual who is deaf, that Total Orthopedics refused to provide her with appropriate auxiliary aids and services, including a qualified sign-language interpreter, to ensure effective communication during a medical appointment at Total Orthopedics’ location in Massapequa in January 2020.
Under the settlement agreement, Total Orthopedics has agreed to provide appropriate auxiliary aids and services, including qualified sign-language interpreters, to patients who are deaf or hard of hearing. Total Orthopedics also agreed to update and maintain appropriate policies, to revise its training materials and provide annual training to its personnel, to post notices in its medical centers and on its website to inform patients of their right to auxiliary aids and services, and to cooperate with the United States Attorneys’ Office for the Eastern District of New York to ensure ongoing compliance with the terms of the settlement agreement. Total Orthopedics will pay $1,500 to the complainant.
“This Office is deeply committed to protecting the civil rights of all individuals and will not hesitate to vigorously enforce the laws protecting people with disabilities when necessary,” stated United States Attorney Peace. “Today’s resolution ensures that the deaf and hard of hearing will be able to effectively and efficiently communicate with health care professionals at Total Orthopedics locations throughout New York City, Long Island, and New Jersey.”
The United States’ case was handled by Assistant U.S. Attorney Ekta Dharia of the Office’s Civil Division with assistance from Civil Rights Investigator Laura Riley.
Any member of the public who wishes to file a complaint alleging that the office of a health care provider or any other place of public accommodation or public entity in the Eastern District of New York is not accessible to persons with disabilities may contact this Office via the following link: https://www.justice.gov/usao-edny/civil-rights.
Queens Man Pleads Guilty to Real Estate Fraud SchemeRead the Press Release
Earlier today, in federal court in Brooklyn, Rashidun Bokhari pleaded guilty to wire fraud stemming from a purported real estate investment scheme. Bokhari was arrested in October 2022. Today’s proceeding was held before United States District Judge Pamela K. Chen. When sentenced, Bokhari faces up to 20 years in prison.
Breon Peace, United States Attorney for the Eastern District of New York, announced the guilty plea.
As set forth in court filings, between September 2015 and April 2018, Bokhari induced the victim to invest approximately $935,000 in four different real estate properties located in Long Island City and Astoria in Queens. Bokhari falsely claimed that in exchange for his investment in the purported real estate transactions, the victim investor would receive a 50 percent ownership in the properties. Bokhari fabricated real estate transaction documents which he provided to the victim investor. After receiving almost $1 million, the defendant misappropriated the money for his own personal use, including transferring funds overseas, making mortgage and life insurance payments, and withdrawing cash from ATMs. As part of his plea agreement, Bokhari has agreed to pay restitution in the amount of $935,000 to the victim.
The government’s investigation also revealed that between December 20, 2020 and May 2022, Bokhari engaged in a separate scheme to defraud two additional victims in Queens. As part of his plea agreement, Bohkari has agreed to pay these two victims restitution in the amount of $191,100.
Bokhari’s victims are of Bengali descent and he exploited their shared ethnic background in furtherance of his schemes.
Anyone who believes they are a victim of a crime committed by Bokhari is asked to contact the United States Attorney’s Office at https://www.justice.gov/usao-edny/report-crime
The government’s case is being handled by the Office’s Business and Securities Fraud Section. Assistant United States Attorney Lauren Bowman is in charge of the prosecution and the investigation was led by Special Agent Martin Sullivan of the Eastern District of New York.
The Defendant:
RASHIDUN BOKHARI
Age: 57
Astoria, QueensE.D.N.Y. Docket No. 23-CR-58 (PKC)
Queens Investment Advisor Indicted for Multi-Million Dollar Securities Fraud SchemeRead the Press Release
Today, in federal court in Central Islip, Surage Roshan Perera, the Founder and Executive Director of Janues Capital, Inc. (Janues) in Bellerose, Queens, will be arraigned on a 16-count indictment charging him with securities fraud, investment advisor fraud, wire fraud, and money laundering, in connection with a scheme to induce an investor (Jane Doe) to purchase stock in companies that traded on the NASDAQ and New York Stock Exchange (NYSE). Perera was arrested this morning and the arraignment will be held before United States Magistrate Judge Steven L. Tiscione.
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.
“As alleged, the victim trusted Perera with millions of dollars of her hard-earned money for what she was assured would be a safe investment,” stated United States Attorney Peace. “In reality, the defendant deceived the victim and used the money to enrich himself. This Office will hold the defendant accountable for his acts of greed and dishonesty.”
Mr. Peace thanked the Securities and Exchange Commission and the Financial Industry Regulatory Authority, Inc., Criminal Prosecution Assistance Group for their cooperation and assistance.
As alleged in the indictment, between February 2022 and March 2023, Perera contacted Jane Doe via telephone calls, emails and text messages to solicit her to purchase stock in companies that traded on the NASDAQ and NYSE, in exchange for a fee. Perera falsely told Jane Doe that he had relationships with large institutions, and could purchase shares of those publicly-traded companies at discounted prices. The defendant also told Jane Doe that her investment was a low risk venture and he would use her investment capital to purchase shares in those public-traded companies. As a result, Jane Doe gave Perera more than $4.2 million. However, instead of investing Jane Doe’s money in those securities, Perera misappropriated those funds by, among other things: (1) paying redemptions to Jane Doe, (2) paying personal expenses, and (3) funding his day trading. To conceal his fraudulent scheme, Perera sent fraudulent confirmation notices and account statements to Jane Doe.
If convicted, Perera faces a maximum sentence of 20 years’ incarceration.
The charges in the indictment are allegations, and Perera is presumed innocent unless and until proven guilty. If convicted, Perera faces a maximum term of 20 years in prison.
In July 2022, Mr. Peace was selected as the Chairperson of the White Collar Fraud subcommittee for the Attorney General’s Advisory Committee (AGAC). As the leader of the subcommittee, Mr. Peace will play a key role in making recommendations to the AGAC to facilitate the prevention, investigation and prosecution of various financially motivated, non-violent crimes including mail and wire fraud, bank fraud, health care fraud, tax fraud, securities and commodities fraud, and identity theft.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorney Christopher Caffarone is in charge of the prosecution.
The Defendant:
SURAGE ROSHAN PERERA
Age: 50
Bellerose, QueensE.D.N.Y. Docket No. 23-CR-129 (GRB)
Gang Member Convicted of Multiple Armed CarjackingsRead the Press Release
Dieuverson Caille was convicted today by a federal jury in Brooklyn on all counts of an indictment charging him with committing multiple armed carjackings. Between August 28, 2020 and June 20, 2021, Caille, together with his co-conspirators, robbed victims at gunpoint, kidnapped one of them, and stole their cars and personal items. The verdict followed a one-week trial before United States Circuit Judge Denny Chin sitting by designation. When sentenced, Caille faces a mandatory minimum of 21 years’ imprisonment and a maximum of life imprisonment.
Breon Peace, United States Attorney for the Eastern District of New York, and John B. DeVito, Special Agent-in-Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and Keechant L. Sewell, Commissioner, New York City Police Department (NYPD), announced the verdict.
“The defendant has been convicted of repeatedly using firearms to force innocent victims to give up their cars, confronting them with a terrifying choice of being seriously injured or killed,” stated United States Attorney Peace. “The verdict today reflects this Office’s ongoing commitment to vigorously prosecute defendants who commit violent, gun-related crimes in our district.”
ATF Special Agent-in-Charge DeVito stated: “Today’s conviction serves as notice that the use of firearms to terrorize innocent victims will be met with swift and exacting justice. ATF and NYPD will expend all necessary resources to ensure that offenders such as the defendant are rewarded for their criminal activity with lengthy prison sentences. I am thankful for the hard work and commitment of the men and women of ATF NY’s Strategic Pattern Armed Robbery Technical Apprehension group, NYPD’s Brooklyn Robbery Squad & the U.S. Attorney’s Office for the Eastern District of New York. ATF will continue to work with our Federal, State, and local partners to keep our communities safe.”
“Amid a nationwide increase in vehicle thefts that includes a spike in New York City, today’s guilty verdict sends a clear message that such crime – particularly the brazen variety carried out at gunpoint – will never be tolerated in our neighborhoods,” stated NYPD Commissioner Keechant L. Sewell. “The NYPD, along with our law enforcement partners, will continue to aggressively investigate, arrest, and prosecute anyone responsible for violence in our communities. I commend and thank the skilled investigators of the NYPD and the ATF, as well as everyone from the U.S. Attorney’s Office for the Eastern District who were involved in this important case.”
As proven at trial, on August 28, 2020, Caille, a member of both the Eight Tray Crip and Haitian Locc gangs, approached a victim driving an Infiniti in Flatbush and carjacked him at gunpoint. Caille and several accomplices drove the victim to a nearby drive-through ATM where the defendant attempted to force the victim to withdraw money. The victim escaped by jumping out of the car’s window. Also as part of the conspiracy, on September 3, 2020, Caille and several accomplices carjacked a Chevrolet Malibu at gunpoint in Flatbush and attacked an occupant of the car by pistol whipping him. On November 15, 2020, Caille, acting alone, carjacked at gunpoint the driver of a BMW who was working as a rideshare driver in Flatbush. The following day, after NYPD officers observed the stolen BMW, the defendant crashed the vehicle and struck a pedestrian. Finally, on June 20, 2021, the defendant, together with at least one other accomplice, carjacked at gunpoint the driver of a Porsche in East New York.
Caille was convicted of one count of conspiracy to commit carjacking, three substantive carjacking offenses, and three instances of brandishing a firearm in furtherance of those carjackings.
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 the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
Assistant United States Attorneys Sara K. Winik, Ellen H. Sise, and Antoinette N. Rangel are in charge of the prosecution with assistance from Paralegal Specialist Magdalena St. Surin.
The Defendant:
DIEUVERSON CAILLE
Age: 22
Brooklyn, New YorkE.D.N.Y. Docket No. 20-CR-547 (DC)
California Man Charged with Conspiring to Make Death Threats Against Brooklyn-Based JournalistRead the Press Release
Nicholas Welker, also known as “King ov Wrath,” was arrested today in San Jose, California based on a complaint filed in Brooklyn federal court charging him with conspiring to make threatening statements. The complaint charges that Welker, the one-time leader of Feuerkrieg Division (FKD), an international racially or ethnically motivated violent extremist group, posted death threats against a Brooklyn-based journalist (the “Journalist”) in a public online forum and his co-conspirators tweeted the death threats at the Journalist for reporting on the extremist group. Welker is expected to appear in federal district court in the Northern District of California in San Jose this afternoon.
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.
“As alleged, Nicholas Welker used threats of violence in an effort to stop a journalist from reporting on the white supremacist hate group that he led. He sought to quell freedom of expression and to intimidate and instill fear in a journalist and the journalist’s employer—a well-known news media organization,” stated United States Attorney Peace. “We will not hesitate to prosecute those who threaten the core values on which our society was founded, including freedom of the press.”
Mr. Peace praised the outstanding investigative work of the FBI’s New York Joint Terrorism Task Force, which consists of investigators and analysts from the FBI, the New York City Police Department, and over 50 other federal, state, and local agencies, and the FBI’s San Francisco Field Office. Mr. Peace also thanked the U.S. Attorney’s Office for the Northern District of California for its assistance, as well as the Estonian Internal Security Service and the Prosecutor’s Office for their valuable support.
“As alleged, Mr. Welker and those he encouraged attempted to silence a journalist with threats of violence. Freedom of both speech and the press are integral to our nation, and we will not allow it to be restricted through violence or intimidation. Today’s action serves as a reminder to anyone willing to attack these rights - the FBI will do everything in our power to fulfill our mission of protecting the American people and upholding the Constitution,” stated FBI Assistant Director-in-Charge Driscoll.
Welker’s threat included an image that featured a gun aimed at the Journalist’s head with the words “Race Traitor” over the Journalist’s eyes and stated, “JOURNALIST F[***] OFF! YOU HAVE BEEN WARNED.” The threat highlighted that the Journalist “Works as a Reporter” at a news media company and is “Responsible for Stalking our Boys for Information.” After Welker posted the threat to an online forum, Welker’s two minor-aged co-conspirators (who were also members of the white supremacist group) tweeted the threat directly at the Journalist’s twitter handle, in the hope that the Journalist would see the death threat and stop reporting.
As alleged in the complaint, Welker was the leader of an extremist group whose members share a common goal of challenging laws, social order, and the government via terrorism and other violent acts. The organization encourages attacks on racial minorities, the Jewish community, the LGBTQ+ community, the U.S. Government, journalists, and critical infrastructure. FKD has members in the United States and abroad.
The charge in the complaint is an allegation, and the defendant is presumed innocent unless and until proven guilty. If convicted, Welker faces a maximum sentence of five years’ imprisonment.
The government’s case is being handled by the Office’s National Security and Cybercrime Section. Assistant United States Attorney Ellen H. Sise is in charge of the prosecution with assistance from Trial Attorney Jennifer Levy of the National Security Division’s Counterterrorism Section and EDNY Litigation Analyst Ben Richmond.
The Defendant:
NiCHOLAS WELKER (also known as “King ov Wrath”)
Age: 31San Jose, California
E.D.N.Y. Docket No. 23-MJ-230
Ex-Federal Correction Officer Pleads Guilty to Taking Bribes in Exchange for Smuggling Contraband into the Metropolitan Detention Center in BrooklynRead the Press Release
Earlier today, in federal court in Brooklyn, former federal correction officer Jeremy Monk pleaded guilty to receiving bribes in exchange for providing contraband to prison inmates detained at the Metropolitan Detention Center (MDC) in Brooklyn. Today’s proceeding was held before United States Magistrate Judge James R. Cho. When sentenced, the defendant faces a maximum sentence of 15 years’ imprisonment.
Breon Peace, United States Attorney for the Eastern District of New York, announced the guilty plea.
“The defendant has admitted to violating his duty as a federal correction officer by taking bribes in exchange for smuggling contraband into the Metropolitan Detention Center, a serious betrayal of his fellow correction officers and staff, incarcerated individuals, and the trust placed in him by the government,” stated United States Attorney Peace. “This Office is focused on rooting out corruption that threatens the safety and security of our federal and local jails.”
Mr. Peace expressed his thanks to the Department of Justice, Office of Inspector General, and the Federal Bureau of Investigation, New York Field Office, for their investigative work on the case.
According to court documents and facts presented at the guilty plea proceeding, Monk worked as a correction officer at the MDC from May 2020 until he voluntarily resigned on April 18, 2022. On multiple occasions, Monk smuggled contraband into the MDC in exchange for bribes. For example, on December 5, 2020, MDC staff members conducted a search of the cell of an incarcerated individual (Inmate-1) because they suspected that Inmate-1 was in possession of marijuana due to an odor coming from his cell. Although no marijuana was found, MDC staff recovered a cellular telephone, which is contraband in a federal correctional facility. Financial records show that three days before MDC staff recovered the cellular telephone, the romantic partner of Inmate-1 attempted to make seven payments to Monk via Cash App in amounts ranging from $750 to $4,000. All seven transactions were blocked by Cash App. On April 15, 2022, three days before Monk resigned, MDC staff learned that Monk had agreed to accept $10,000 from inmates in exchange for his smuggling contraband into the MDC and leaving it in a staff restroom. That afternoon, Monk was observed entering the staff restroom consistent with the information MDC staff received. After Monk left the restroom, MDC staff found more than nine ounces of marijuana hidden on a shelf under floor buffing pads.
The government’s case is being handled by the Office’s Public Integrity Section. Assistant United States Attorney Philip Pilmar is in charge of the prosecution.
The Defendant:
JEREMY MONK
Age: 32
Brooklyn, New YorkE.D.N.Y. Docket No. 22-CR-442
Staten Island Man Pleads Guilty to Baby Formula Fraud SchemeRead the Press Release
BROOKLYN – Earlier today, in federal court in Brooklyn, Vladislav Kotlyar pleaded guilty to defrauding insurance plans and medical suppliers by fraudulently procuring specialty baby formula. When sentenced for mail fraud, Kotlyar faces up to 20 years in prison. The proceeding was held before United States District Judge William F. Kuntz, II.
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), announced the guilty plea.
According to court filings, Kotlyar submitted forged prescriptions and medical records for specialty baby formula that was paid for by health insurers. Kotlyar obtained prescriptions and medical records for infants who were prescribed specialty baby formula and forged those records to obtain additional specialty baby formula. After receiving the specialty baby formula, Kotlyar fabricated issues with the shipments, including falsely claiming they were damaged or the incorrect formula in order to obtain additional formula at no additional cost. As part of the scheme, Kotlyar and his co-conspirators submitted more than $1.9 million in fraudulent claims to health insurers, including during a national shortage of baby formula. Kotlyar agreed to forfeit approximately $1 million and pay more than $738,000 in restitution.
Trial Attorney Patrick J. Campbell of the Justice Department’s Fraud Section is prosecuting the case.
The Defendant:
VLADISLAV KOTLYAR
Age: 43
Staten Island, New YorkE.D.N.Y. Docket Number: 23-CR-75 (WFK)
Queens Man Sentenced to 16 Years in Prison for Enticing Three Minors to Engage in Sexual ConductRead the Press Release
Earlier today, in federal court in Brooklyn, Rogelio Vega was sentenced by United States District Judge Eric R. Komitee to 16 years in prison for enticing three minors to engage in sexual conduct. As part of his sentence, Vega will be required to register as a sex offender upon his release from prison. Vega pleaded guilty to the charges in September 2022.
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.
Between approximately 2015 and January 2021, the defendant, while also serving as an ordained Deacon in the Catholic Church, used the Kik Internet messaging application, which is marketed to teens, and the Grindr Internet application, which is marketed to the LGBTQ+ community, to express his interest in “young guys” and coerce and entice three male victims between the ages of 14 and 16 to meet him for sexual acts. Messages found on the defendant’s cell phones revealed a series of communications in which the victims identified themselves as underage and the defendant arranged to meet them multiple times for sexual encounters in his car or at motels.
Anyone with information about crimes perpetrated by Vega is asked to contact the FBI at 1-800-CALL-FBI and reference this case.
Department of Justice Trial Attorney Patrick J. Campbell is in charge of the prosecution.
The Defendant:
ROGELIO VEGA
Age: 52
Maspeth, New YorkE.D.N.Y. Docket No. 21-CR-563 (EK)
Manager of Transnational Fraud Scheme Sentenced to 41 Months in PrisonRead the Press Release
Earlier today, in federal court in Central Islip, Kamal Zafar was sentenced by United States District Judge Joan M. Azrack to 41 months in prison for conspiracy to commit wire fraud in connection with a fraudulent scheme directed at thousands of individuals in the United States. As part of the sentence, Zafar was also ordered to pay restitution in the amount of $3.2 million and forfeiture of $232,362. Zafar pleaded guilty to the charge in June 2022.
Breon Peace, United States Attorney for the Eastern District of New York, announced the sentence.
Mr. Peace thanked the Internal Revenue Service-Criminal Investigation, Treasury Inspector General for Tax Administration and New York City Police Department for their assistance with the case.
As alleged in the indictment and other court filings and proceedings, Zafar managed the fraud scheme by recruiting individuals to open bank accounts in the names of inactive and shell corporations and also assisted in the laundering of fraud proceeds. Between January 2018 and September 2018, operating from call centers in India, the scheme targeted victims in the United States and falsely claimed to be employees of the Internal Revenue Service, the Social Security Administration or the Drug Enforcement Administration. The victims who were taxpayers were informed that they owed a sum of money to the Internal Revenue Service. The victims who were medical professionals were informed that they owed a sum of money to the DEA in connection with their licenses. Both groups of victims were told that they would be arrested the next day if the debts were not immediately paid. After the victims wired payments to bank accounts that Zafar had opened or directed to be opened to receive the fraud proceeds, the funds were either withdrawn and laundered through additional bank accounts or wired to foreign countries. The scheme netted over $2 million from victims across the United States.
Zafar’s six co-conspirators previously pleaded guilty. In January 2022, Ajay Sharma, the leader and organizer of the fraud scheme, was sentenced to 78 months in prison and five others are awaiting sentencing.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorneys Charles P. Kelly, Charles N. Rose and Diane Leonardo are in charge of the prosecution.
The Defendant:
KAMAL ZAFAR
Age: 53
South Huntington, New YorkDefendants Who Have Previously Pleaded Guilty:
AJAY SHARMA
Age: 44
Mumbai, IndiaANKUR SHARMA
Age: 25
Bellerose, New YorkRICARDO URBINO, also known as “Ricardo Urbina”
Age: 30
Queens, New YorkHARPREET SINGH
Age: 33
Queens Village, New YorkE.D.N.Y. Docket No. 19-CR-024 (JMA)
JAMAL ZAFAR
Age: 48
Huntington, New YorkARMUGHANUL ASAR
Age: 68
College Point, New YorkE.D.N.Y. Docket No. 19-CR-385 (JMA)
Two Men Charged for Breaching Federal Law Enforcement Database and Posing as Police Officers to Defraud Social Media CompaniesRead the Press Release
A criminal complaint was unsealed today in federal court in Brooklyn charging Sagar Steven Singh and Nicholas Ceraolo with wire fraud and conspiracy to commit computer intrusions. The charges stem from Singh’s and Ceraolo’s efforts to extort victims by threatening to release their personal information online. Singh was arrested this morning in Pawtucket, Rhode Island, and will make his initial appearance this afternoon in federal court in Providence, Rhode Island. Ceraolo remains at large.
In pursuit of victims’ personal information, Singh and Ceraolo unlawfully used a police officer’s stolen password to access a restricted database maintained by a federal law enforcement agency that contains (among other data) detailed, nonpublic records of narcotics and currency seizures, as well as law enforcement intelligence reports. Ceraolo (with Singh’s knowledge) also accessed without authorization the email account of a foreign law enforcement officer, and used it to defraud social media companies by making purported emergency requests for information about the companies’ users.
Breon Peace, United States Attorney for the Eastern District of New York, and Ivan J. Arvelo, Special Agent-in-Charge, Homeland Security Investigations, New York (HSI), announced the charges.
“Singh and Ceraolo aptly belonged to a group called, as their crime was, ‘Vile.’ That conduct ends today,” stated United States Attorney Peace. “As alleged, the defendants shamed, intimidated and extorted others online. This Office will not tolerate those who impersonate law enforcement officers and misuse the public safety infrastructure that exists to protect our citizens.”
“As these charges make clear, the alleged unauthorized access of a US federal law enforcement system and impersonation of law enforcement officials are serious offenses, and the criminals who perpetrate these schemes will be held accountable for their crimes.” stated HSI New York Special Agent-in-Charge Arvelo. “HSI and its law enforcement partners are committed to safeguarding public safety infrastructure from cyber criminals and ensuring that those seeking to compromise these systems face the fullest extent of the law.”
As alleged in the criminal complaint, Singh and Ceraolo belonged to a group called “ViLE,” whose logo is the body of a hanging girl, as depicted below in the group’s official roster:
Members of ViLE sought to collect victims’ personal information, such as names, physical addresses, telephone numbers, social security numbers and email addresses. ViLE then posted that information (or threatened to post it) on a public website administered by a ViLE member – an action known as “doxxing.” Victims could pay to have their information removed from or kept off the website.
ViLE members acquired victims’ information by various means, including by impersonating law enforcement officers and sending forged requests or orders purporting to be from law enforcement to social media companies, often demanding victim information on the pretense that loss of life was imminent.
As alleged in the complaint, in pursuit of victims’ personal information. Singh and Ceraolo used a police officer’s credentials to access without authorization a nonpublic, password-protected web portal (the “Portal”) maintained by a U.S. federal law enforcement agency, whose purpose is to share intelligence from government databases with state and local law enforcement agencies. After both Singh and Ceraolo accessed the Portal, Ceraolo wrote to Singh: “were all gonna get raided one of these days i swear.” Later that day, Singh wrote to a contact that the “portal [] i accessed i was not supposed to be there not one bit.” Singh said he had “jacked into a police officer’s account” and “that portal had some fucking potent tools.” Singh continued: “it gave me access to gov databases,” followed by the names of five search tools accessible through the Portal.
Within one day of this unauthorized access, Singh was using his access to the Portal to extort victims. Singh wrote to a victim (Victim-1) that he would “harm” Victim-1’s family unless Victim-1 gave Singh the credentials for Victim-1’s Instagram accounts – and appended Victim-1’s social security number, driver’s license number, home address, and other personal details. During the conversation, Singh told Victim-1 that he had “access to [] databases, which are federal, through [the] portal, i can request information on anyone in the US doesn’t matter who, nobody is safe.” Singh added: “you’re gonna comply to me if you don’t want anything negative to happen to your parents.” Singh ultimately directed Victim-1 to sell Victim-1’s accounts and give the proceeds to Singh.
In addition to accessing the Portal without authorization, Ceraolo posed as a police officer to obtain subscriber information from various online service providers. For example, between February 2022 and May 2022, Ceraolo accessed without authorization an official email account belonging to a Bangladeshi police official. Ceraolo used the account to pose as a Bangladeshi police officer in communication with U.S.-based social media platforms. In one instance, Ceraolo induced a social media platform (Platform-1) to provide information about one of its subscribers, including the subscriber’s address, email address and telephone number, by asserting that the subscriber had participated in “child extortion” and blackmail and had threatened officials of the Bangladeshi government. Ceraolo shared the information with another ViLE member, who sent the information to Singh. Ceraolo also used the Bangladeshi police account to attempt to purchase a license from a facial recognition company whose services are not available to the general public.
Similarly, between March 2022 and May 2022, Ceraolo targeted a company (Platform-2) that operates an online gaming platform. Ceraolo used the Bangladeshi police account to request data about one of Platform-2’s users. Employees of Platform-2 detected Ceraolo’s fraud and publicly discussed the attempted fraud. Ceraolo told an associate that he would “hack” Platform-2 in retaliation for “acting like their [sic] untouchable,” that he would “handle dumping and defacing everything for trying to snitch to homeland security” and that he could “easily get 6 figs” for selling Platform-2’s information “on one of the dark web markets.” At Ceraolo’s behest, an associate posed as a U.S. local police officer and sent a forged subpoena to one of Platform-2’s vendors, seeking registration details about Platform-2’s administrators. The vendor did not provide the information.
If convicted, Ceraolo faces up to 20 years’ imprisonment for conspiracy to commit wire fraud, and both Ceraolo and Singh face five years’ imprisonment for conspiracy to commit computer intrusions. The charges in the complaint are allegations, and the defendants are presumed innocent unless and until proven guilty.
The Office extends its appreciation the New York City Police Department and the Federal Bureau of Investigation for their assistance on this case.
The government’s case is being handled by the Office’s National Security and Cybercrime Section. Assistant United States Attorneys Alexander Mindlin, Ellen Sise and Adam Amir are in charge of the prosecution.
The Defendants:
NICHOLAS CERAOLO (also known as “Convict,” “Anon” and “Ominous”)
Age: 25
Queens, New YorkSAGAR STEVEN SINGH (also known as “Weep”)
Age: 19
Pawtucket, Rhode IslandE.D.N.Y. Docket No. 23-MJ-213
Former DOJ Paralegal Sentenced to 33 Months in Prison for Witness Retaliation and Obstruction of Justice-Related CrimesRead the Press Release
Earlier today, in federal court in Brooklyn, Tawanna Hilliard was sentenced by United State District Judge Pamela Chen to 33 months in prison. The defendant was previously convicted, following a one-week trial, of witness retaliation, conspiracy to commit witness retaliation, obstruction of justice and conspiracy to obstruct justice. The evidence at trial showed that the defendant, who was the mother of a 5-9 Brim member and had long-standing ties with other members, was responsible for uploading the post-arrest statements of witnesses suspected of cooperating against the gang to YouTube—knowing that violent consequences were likely to follow. At the time of her crimes, Hilliard was a paralegal working in the Civil Division of another United States Attorney’s Office. Her co-defendant and son, Tyquan Hilliard, pleaded guilty to witness tampering conspiracy in November 2020 and was sentenced to 63 months’ imprisonment.
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.
“The defendant, whose job it was to serve justice, instead threatened the integrity of our justice system and the safety of government witnesses,” stated United States Attorney Breon Peace. “Today’s sentence reflects the seriousness of her crimes and serves as a warning that obstructive and retaliatory conduct by anyone will not be tolerated and will be punished.”
Mr. Peace thanked Department of Justice’s Office of Inspector General for their assistance in the investigation and prosecution of the case.
In May 2018, the defendant’s son, a member of the 5-9 Brims, participated in an armed robbery of a cell phone store in Monticello, New York, with another individual (John Doe) and that individual’s girlfriend (Jane Doe). All three were arrested by local police, and John Doe and Jane Doe thereafter made video-recorded post-arrest statements to law enforcement, including to federal task force officers investigating a string of commercial robberies committed by members of the 5-9 Brims. In August 2018, the defendant received discovery in her son’s robbery case, which included the video-recorded statements of John Doe and Jane Doe. The defendant discussed the videos in detail over recorded phone calls with her son, who was incarcerated pending trial for the robbery.
On August 5, 2018, the defendant uploaded the video of John Doe’s post-arrest statement to YouTube, through an Internet Protocol address assigned to the defendant’s account at her home address in Brooklyn. The video was entitled, “NYC Brim Gang Member SNITCHING! Pt. 1.”
Also on August 5, 2018, over a recorded jail call, the defendant’s son asked the defendant to send the video of Jane Doe’s post-arrest statement to one of his gang associates. The defendant and her son also discussed “tagging” John Doe in the video, to make it clear he had also “snitched.” Later that day, the video of Jane Doe’s statement was uploaded to YouTube with the title, “NYC Brim Gang Member Girlfriend SNITCHING ([Facebook name of John Doe]).” The video of John Doe’s statement quickly garnered over 10,000 views, and a substantial amount of attention on social media, including comments that included threats of violence against Jane Doe and John Doe.
Shortly thereafter, Jane Doe began receiving numerous death threats and reported hearing gunshots outside her apartment. She was relocated by law enforcement as a result. John Doe also received numerous death threats in jail.
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 the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
The government’s case is being prosecuted by the Office’s Organized Crime and Gangs Section. Assistant United States Attorneys Nicholas Moscow and Lindsey Oken are in charge of the prosecution, with assistance from Paralegal Specialist Celine Laruelle.
The Defendant:
TAWANNA HILLIARD
Age: 48
Brooklyn, New YorkPreviously Sentenced Defendant
TYQUAN HILLIARD
Age: 32
Brooklyn, New YorkE.D.N.Y. Docket No. 19-CR-358 (S-1) (PKC)
Former Goldman Sachs Managing Director Sentenced to 10 Years in Prison for His Role in Massive Bribery and Money Laundering SchemeRead the Press Release
BROOKLYN, NY – Earlier today, Ng Chong Hwa, also known as “Roger Ng,” a citizen of Malaysia and a former Managing Director of The Goldman Sachs Group, Inc. (Goldman Sachs), was sentenced by United States District Judge Margo K. Brodie to 10 years’ imprisonment for conspiring to launder billions of dollars embezzled from 1Malaysia Development Berhad (1MDB), conspiring to violate the Foreign Corrupt Practices Act (FCPA) by paying more than $1.6 billion in bribes to a dozen government officials in Malaysia and Abu Dhabi, and conspiring to violate the FCPA by circumventing the internal accounting controls of Goldman Sachs. The forfeiture amount will be determined at a later date. In April 2022, Ng was convicted by a federal jury on all counts following a nine-week trial.
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 Tyler Hatcher, Special Agent-in-Charge, Internal Revenue Service Criminal Investigation, Los Angeles Field Office (IRS-CI), announced the sentence.
“Roger Ng was a central player in a brazen and audacious scheme that not only victimized the people of Malaysia, but also risked undermining the public’s confidence in governments, markets, businesses and other institutions on a global scale,” stated United States Attorney Peace. “Today’s sentence serves as a just punishment for the defendant’s crimes and a warning that there is a significant price to pay for corporate corruption.”
“Today, Roger Ng was sentenced for his role in a massive and egregious bribery and money laundering scheme involving the bribery of high-level foreign officials in Malaysia and the United Arab Emirates and theft of billions of dollars meant to benefit the Malaysian people,” stated Assistant Attorney General Polite. “The Justice Department remains firmly committed to holding accountable individuals who engage in corruption, undermine the rule of law, and abuse our financial system to launder their illicit funds. This sentence sends a strong message to criminals around the world: if you violate our laws, we will bring you to justice.”
“Roger Ng, a former Managing Director of Goldman Sachs, played a significant role in a corrupt financial scheme to launder billions of dollars embezzled from 1MDB that ultimately victimized the people of Malaysia. Today’s sentence serves as both punishment for Ng’s crimes and a stark reminder to those who endeavor to engage in similar conduct – the FBI and our partners remain vigilant in combatting corruption in all its forms,” stated FBI Assistant Director-in-Charge Driscoll.
“The 1MDB case and the sentencing of Mr. Ng, highlight IRS Criminal Investigation’s enforcement efforts to abolish international bribery schemes. U.S. Financial Institutions have safeguards in place to combat these frauds and Mr. Ng intentionally circumvented these safeguards. This sentence is a testament to what happens when you break US laws to bribe international government officials,” stated IRS-CI Special Agent-in-Charge Hatcher. “This case represents a model for domestic and international cooperation in significant cross-border money laundering investigations and we are proud of our domestic and international law enforcement partners in this complex financial investigation.”
1MDB is a Malaysian state-owned and controlled fund created to pursue investment and development projects for the economic benefit of Malaysia and its people.
Ng was employed as a Managing Director by various subsidiaries of Goldman Sachs and acted as an agent and employee of Goldman Sachs from approximately 2005 to May 2014.
Between approximately 2009 and 2014, Ng conspired with others to launder billions of dollars misappropriated and fraudulently diverted from 1MDB, including funds 1MDB raised in 2012 and 2013 through three bond transactions it executed with Goldman Sachs, known as “Project Magnolia,” “Project Maximus,” and “Project Catalyze.” As part of the scheme, Ng and others, including Tim Leissner, the former Southeast Asia Chairman and participating managing director of Goldman Sachs, and co-defendant Low Taek Jho, a wealthy Malaysian socialite also known as “Jho Low,” conspired to pay more than a billion dollars in bribes to a dozen government officials in Malaysia and Abu Dhabi to obtain and retain lucrative business for Goldman Sachs, including the 2012 and 2013 bond deals. They also conspired to launder the proceeds of their criminal conduct through the U.S. financial system by funding major Hollywood films such as “The Wolf of Wall Street,” and purchasing, among other things, artwork from New York-based Christie’s auction house including a $51 million Jean-Michael Basquiat painting, a $23 million diamond necklace, millions of dollars in Hermes handbags from a dealer based on Long Island, and luxury real estate in Manhattan.
Ng, Leissner, Low and their co-conspirators used Low’s close relationships with high-ranking government officials in Malaysia and Abu Dhabi to obtain and retain business for Goldman Sachs through the promise and payment of hundreds of millions of dollars in bribes. In the course of executing the scheme, Ng conspired with others at Goldman Sachs to circumvent the investment bank’s internal accounting controls. Through its work for 1MDB during that time, Goldman Sachs received approximately $600 million in fees and revenues, while Ng received more than $35 million for his role in the bribery and money laundering scheme. In total, Ng and the other co-conspirators misappropriated more than $2.7 billion from 1MDB.
As proven at trial, Ng spent years cultivating a relationship with Low in order to get him to bring business to Goldman Sachs. In the process of doing so, Ng attempted to onboard Low as a private wealth management client for Goldman Sachs and, when confronted with questions from Goldman Sachs compliance personnel about Low’s government connections and source of wealth, lied about the extent of his relationship with Low; Ng communicated with Low about business opportunities using personal email accounts to avoid detection by Goldman Sachs compliance personnel; and Ng and Leissner attempted to work with Low on a series of side deals that were not disclosed to Goldman Sachs, and in one such potential deal, Ng, Leissner and Low discussed paying a bribe to get a deal completed. With respect to the charged conduct, the trial evidence shows that Ng was instrumental in creating the structure of the bond deals, which enabled the theft of billions of dollars, and in lying to Goldman Sachs about Low’s involvement in the deals and the payment of bribes and kickbacks in order to get the deals approved. To receive his $35 million in kickbacks, Ng set up a shell company in the name of his mother-in-law, and he and his wife used a bank account in the name of that company, in addition to a number of other bank accounts in the names of family members, to conceal and further launder his ill-gotten gains. And when news about the 1MDB scheme started to become public, Ng deleted the contents of four email accounts that had been used in furtherance of the crimes, and lied to law enforcement authorities in Malaysia and Singapore investigating the scheme.
Low remains a fugitive. In August 2018, Leissner pleaded guilty to a two-count criminal information charging him with conspiring to launder money and conspiring to violate the FCPA by both paying bribes to various Malaysian and Abu Dhabi officials and circumventing the internal accounting controls of Goldman Sachs. Leissner has been ordered to forfeit $43 million and shares of stock valued at more than $200 million. Leissner is awaiting sentencing.
In October 2020, Goldman Sachs and Goldman Sachs (Malaysia) Sdn. Bhd. (GS Malaysia), its Malaysian subsidiary, admitted to conspiring to violate the anti-bribery provisions of the FCPA in connection with the scheme. Goldman Sachs entered into a deferred prosecution agreement with the United States Attorney’s Office for the Eastern District of New York and the Department of Justice’s Criminal Division, Fraud Section and Money Laundering and Asset Forfeiture Section (MLARS), and GS Malaysia pleaded guilty in the U.S. District Court for the Eastern District of New York to a one-count criminal information. Goldman Sachs also paid more than $2.9 billion as part of a coordinated resolution with criminal and civil authorities in the United States, the United Kingdom, Singapore, and elsewhere.
The investigation was jointly conducted by the FBI’s International Corruption Unit and IRS-Criminal Investigation. The government’s criminal case is being handled by the Business and Securities Fraud Section of the United States Attorney’s Office for the Eastern District of New York, MLARS and the Fraud Section. Assistant United States Attorneys Alixandra E. Smith, Drew G. Rolle and Dylan Stern, and MLARS Chief Brent Wible and FCPA Chief David Last are prosecuting the case; Jennifer Ambuehl, former Chief of MLARS’ Bank Integrity Unit, also prosecuted the case. Assistant United States Attorneys Tanisha Payne and Brian Morris of the Office’s Asset Recovery Section are handling forfeiture matters. The Criminal Division’s Office of International Affairs provided critical assistance in this case.
The Department also appreciates the significant cooperation and assistance provided by the U.S. Securities and Exchange Commission, and the Board of Governors of the Federal Reserve System along with the Federal Reserve Bank of New York. The Department also appreciates the significant assistance provided by the government of Malaysia, including the Attorney General’s Chambers of Malaysia, the Royal Malaysia Police and NCB Interpol Malaysia. The Department also appreciates the significant assistance provided by the Attorney General’s Chambers of Singapore, the Singapore Police Force-Commercial Affairs Division, the Office of the Attorney General of Switzerland, the Judicial Investigating Authority of the Grand Duchy of Luxembourg and the Criminal Investigation Department of the Grand-Ducal Police of Luxembourg.
The Defendant:
NG CHONG HWA (also known as “Roger Ng”)
Age: 50
Kuala Lumpur, MalaysiaE.D.N.Y. Docket No. 18-CR-538 (MKB)
Former Goldman Sachs Investment Banker Sentenced in $2.7B Bribery and Money Laundering SchemeRead the Press Release
A former managing director of The Goldman Sachs Group Inc. (Goldman Sachs) was sentenced today to 10 years in prison for his role in a multibillion-dollar bribery and money laundering scheme involving Malaysia’s state-owned investment and development fund, 1Malaysia Development Berhad (1MDB).
“Today, Roger Ng was sentenced for his role in a massive and egregious bribery and money laundering scheme involving the bribery of high-level foreign officials in Malaysia and the United Arab Emirates and theft of billions of dollars meant to benefit the Malaysian people,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “The Justice Department remains firmly committed to holding accountable individuals who engage in corruption, undermine the rule of law, and abuse our financial system to launder their illicit funds. This sentence sends a strong message to criminals around the world: if you violate our laws, we will bring you to justice.”
According to court documents, between approximately 2009 and 2014, Ng Chong Hwa, aka Roger Ng, of Malaysia, and his co-conspirators laundered billions of dollars misappropriated and fraudulently diverted from 1MDB, including funds 1MDB raised in 2012 and 2013 through three bond transactions it executed with Goldman Sachs. As part of the scheme, Ng and his co-conspirators, including Tim Leissner, the former Southeast Asia Chairman and participating managing director of Goldman Sachs, conspired to and did pay more than $1 billion in bribes to 12 government officials in Malaysia and the United Arab Emirates to obtain and retain lucrative business for Goldman Sachs, including the 2012 and 2013 bond deals. They also conspired to and did launder the proceeds of their criminal conduct through the U.S. financial system, including funding major Hollywood films such as “The Wolf of Wall Street,” and purchasing, among other things, a $51 million Jean-Michel Basquiat painting from New York-based Christie’s auction house, a $23 million diamond necklace from a New York jeweler, millions of dollars in Hermès handbags from a dealer based on Long Island, and luxury real estate in Manhattan.
“Roger Ng was a central player in a brazen and audacious scheme that not only victimized the people of Malaysia, but also undermined the public’s confidence in governments, markets, businesses and other institutions on a global scale,” said U.S. Attorney Breon Peace for the Eastern District of New York. “Today’s sentence serves as a just punishment for the defendant’s crimes and a stern warning that there is a significant price to pay for corporate corruption.”
Ng and his co-conspirators, including Low Taek Jho, aka Jho Low, a wealthy Malaysian socialite, used Low’s close relationships with high-ranking government officials in Malaysia and the United Arab Emirates to obtain and retain business for Goldman Sachs through the promise and payment of more than a billion dollars in bribes. In the course of executing the scheme, Ng, with others at Goldman Sachs, conspired to and did circumvent the investment bank’s internal accounting controls. Through its work for 1MDB during that time, Goldman Sachs received approximately $600 million in fees and revenue, while Ng received $35 million for his role in the bribery and money laundering scheme. In total, Ng and his co-conspirators misappropriated more than $2.7 billion from 1MDB.
“This sentencing sends a strong message that those who abuse the U.S. financial system for their own gain will be held accountable,” said Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division. “The FBI and our domestic and international partners remain committed to combating international corruption and will continue to investigate and pursue those who perpetrate complex criminal schemes for profit.”
“The 1MDB case and the sentencing of Mr. Ng highlight IRS Criminal Investigation’s enforcement efforts to abolish international bribery schemes,” said Special Agent in Charge Tyler Hatcher for the IRS Criminal Investigation (IRS-CI). “U.S. financial institutions have safeguards in place to combat these frauds and Mr. Ng intentionally circumvented these safeguards. This sentence is a testament to what happens when you break U.S. laws to bribe international government officials. This case represents a model for domestic and international cooperation in significant cross-border money laundering investigations and we are proud of our domestic and international law enforcement partners in this complex financial investigation.”
In August 2018, Leissner pleaded guilty to conspiring to launder money and conspiring to violate the FCPA. Leissner agreed to forfeit $43 million and shares of stock valued at more than $200 million and is awaiting sentencing. Low was indicted in November 2018 and remains a fugitive.
In October 2020, Goldman Sachs and Goldman Sachs (Malaysia) Sdn. Bhd. (GS Malaysia), its Malaysian subsidiary, admitted to conspiring to violate the anti-bribery provisions of the FCPA in connection with the scheme. Goldman Sachs entered into a deferred prosecution agreement with the Criminal Division’s Fraud Section and Money Laundering and Asset Recovery Section (MLARS), and the U.S. Attorney’s Office for the Eastern District of New York. GS Malaysia pleaded guilty in the U.S. District Court for the Eastern District of New York. Goldman Sachs paid more than $2.9 billion as part of a coordinated resolution with criminal and civil authorities in the United States, the United Kingdom, Singapore, and elsewhere.
In April 2022, Ng was found guilty by a jury of conspiring to violate the FCPA and conspiring to launder billions of dollars.
The FBI’s International Corruption Unit and IRS-CI investigated the case.
Chief Brent Wible of the Criminal Division’s MLARS, Chief David Last of the Fraud Section’s FCPA Unit, and Assistant U.S. Attorneys Alixandra E. Smith, Drew G. Rolle, and Dylan Stern for the Eastern District of New York prosecuted the case. Former Chief of MLARS’ Bank Integrity Unit Jennifer Ambuehl also prosecuted the case. The Justice Department’s Office of International Affairs provided critical assistance.
The department also appreciates the significant cooperation and assistance provided by the U.S. Securities and Exchange Commission, and the Board of Governors of the Federal Reserve System along with the Federal Reserve Bank of New York. The department also appreciates the significant assistance provided by the government of Malaysia, including the Attorney General’s Chambers of Malaysia, the Royal Malaysia Police, NCB Interpol Malaysia, and the Malaysian Anti-Corruption Commission. The department also appreciates the significant assistance provided by the Attorney General’s Chambers of Singapore, the Singapore Police Force-Commercial Affairs Division, the Office of the Attorney General of Switzerland, the Judicial Investigating Authority of the Grand Duchy of Luxembourg, the Criminal Investigation Department of the Grand-Ducal Police of Luxembourg, the United Kingdom National Crime Agency, the United Kingdom Financial Conduct Authority, the United Kingdom Prudential Regulation Authority, the Attorney General's Chambers of the Territory of the British Virgin Islands, and the Attorney General’s Office of the Bailiwick of Guernsey and the Guernsey Economic Crime Division.
The Criminal Division’s Fraud Section is responsible for investigating and prosecuting FCPA matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
The Bank Integrity Unit in MLARS investigates and prosecutes complex, multi-district, and international criminal cases involving financial institutions. The unit’s prosecutions focus on banks and other financial institutions, including their officers, managers, and employees, whose actions threaten the integrity of the individual institution or the wider financial system.
Former 21st Century Fox Executive and Argentina-Based Sports Marketing Company Full Play Group S.A., Convicted of Bribing Soccer Officials in FIFA CaseRead the Press Release
Former 21st-Century Fox Executive Hernan Lopez and Argentine sports marketing company Full Play Group S.A., were convicted today by a federal jury in Brooklyn on all counts of a superseding indictment charging them with wire fraud and money laundering conspiracies for their participation in schemes to bribe executives of soccer’s highest governing bodies—FIFA, CONMEBOL, and, in Full Play’s case, CONCACAF—for the media and broadcasting rights to lucrative soccer tournaments. The verdict followed a seven-week trial before United States District Judge Pamela K. Chen. When sentenced, Lopez faces up to 40 years in prison and millions of dollars in penalties to be determined by Judge Chen. Full Play faces millions of dollars in financial penalties. Co-defendant Carlos Martinez was acquitted on both counts.
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 Tyler Hatcher, Special Agent-in-Charge, Internal Revenue Service Criminal Investigation, Los Angeles Field Office (IRS-CI), announced the verdict.
“Today’s verdict is a resounding victory for justice and for soccer fans around the world. The defendants cheated by bribing soccer officials to act in their own greedy interests rather than in the best interests of the sport,” stated United States Attorney Peace. “The verdict today reflects this Office’s ongoing commitment to rooting out corruption at the highest levels. Companies and individuals alike should understand that, regardless of their wealth or power, they will be brought to justice if they use the U.S. financial system to further corrupt ends.”
Mr. Peace extended his thanks to the agents and other investigative personnel at the FBI New York Eurasian Joint Organized Crime Squad, the FBI’s Integrity in Sport and Gaming Initiative and the IRS-CI Los Angeles Field Office, as well as their colleagues and law enforcement partners in the United States and abroad.
“The many bribery schemes that the beautiful game has endured are brought one step closer to justice by the convictions of Mr. Lopez and Full Play Group S.A.. Soccer fans around the world had a front row seat to these schemes as we watched tournaments by FIFA, CONMEBOL, and, in Full Play’s case, CONCACAF, through the media and broadcasting rights procured by fraud,” stated IRS-CI Special Agent-in-Charge Hatcher. “The defendants hid their corrupt acts behind middlemen, offshore bank accounts, and a facade of respectability, but they could not hide from justice. The IRS and our partners at the FBI and the Department of Justice work tirelessly to expose these corrupt acts, and today these defendants were held accountable for their actions.”
The international soccer federation known as FIFA is comprised of six continental confederations, including the Confederation of North, Central American and Caribbean Association Football (CONCACAF), headquartered in the United States, and the Confederación Sudamericana de Fútbol (CONMEBOL).
As proven at trial, the defendants used their positions in the world of international soccer to engage in schemes involving the solicitation, offer, acceptance, payment and receipt of bribes and kickbacks, principally to obtain lucrative broadcast rights to various international soccer tournaments and events.
Full Play, a sports marketing company incorporated in Uruguay, based in Buenos Aires, Argentina, and owned by father-and-son defendants Hugo Jinkis and Mariano Jinkis, participated in numerous schemes to pay bribes to officials of CONMEBOL and CONCACAF in exchange for media and marketing rights to various soccer events, including World Cup qualifier and friendly matches, the Copa Libertadores, and multiple editions of the Copa América, a national team tournament administered by CONMEBOL. Hugo and Mariano Jinkis, charged in the first indictment in the case unsealed on May 27, 2015, remain fugitives.
Lopez, a formerly high-ranking executive of Fox subsidiaries responsible for developing and carrying out Fox’s sports broadcasting businesses in Latin America, joined Full Play and other co-conspirators in a scheme involving the annual payment of millions of dollars in bribes to officials of CONMEBOL in exchange for the lucrative broadcasting rights to the Copa Libertadores, the region’s most popular club tournament, among other events. Lopez also relied on loyalty secured through the payment of bribes to certain CONMEBOL officials to advance the business interests of Fox, including to obtain confidential bidding information for the rights to broadcast the 2018 and 2022 World Cup tournaments in the United States, rights that Fox successfully obtained.
Today’s conviction is the latest accomplishment in the investigation of corruption in international soccer being led by the U.S. Attorney’s Office of the Eastern District of New York, the FBI’ s New York Field Office and the IRS-CI Los Angeles Field Office. Criminal charges have been brought against more than 50 defendants from more than 20 countries, resulting to date in guilty pleas by more than 30 individual and corporate defendants and trial convictions of 3 individuals and 1 corporation. In addition, 2 corporations have resolved via deferred prosecution agreements and 3 corporations have resolved via non-prosecution agreements. Each has agreed to pay substantial financial penalties.
The government’s case was prosecuted by Assistant United States Attorneys Kaitlin T. Farrell, Robert T. Polemeni, Victor Zapana and Eric Silverberg, with key assistance provided by Assistant United States Attorneys Kristin Mace and Brian D. Morris, paralegals Matthew Flink, Jordi Martinez and Kavya Kannan, and the Justice Department’s Office of International Affairs and Organized Crime and Gang Section.
The Defendants:
HERNAN LOPEZ
Age: 52
Los Angeles, CaliforniaFULL PLAY GROUP S.A.
Buenos Aires, ArgentinaE.D.N.Y. Docket No. 15-CR-252 (S-3) (PKC)
Brooklyn High School Paraprofessional Sentenced to 15 Years for Production of Child Pornography and Sextortion SchemeRead the Press Release
Earlier today, in federal court in Brooklyn, Brian Quinones was sentenced by United States District Judge Hector Gonzalez to 15 years in prison for sexually exploiting a child. As part of his sentence, Quinones will be required to register as a sex offender upon his release from prison. Quinones pleaded guilty to the charge in September 2022.
Breon Peace, United States Attorney for the Eastern District of New York, announced the sentence.
“The defendant’s sextortion of a minor is unconscionable, cruel, and deserving of the punishment he received today in order to protect our communities for the lifetime of harm he has inflicted on his victims,” stated United States Attorney Peace. “I urge parents and caregivers to have frank conversations with their children about the dangers of communicating online with strangers who can pretend to be anyone or anything while making inappropriate requests for photos and videos.”
Mr. Peace thanked the Federal Bureau of Investigation, New York Field Office, and the New York City Police Department for their investigative work on the case.
Between September 2019 and January 2020, Quinones, who worked as a paraprofessional (a teaching assistant) at Midwood High School, used an instant messaging mobile application to trade dozens of videos and images depicting child pornography with another individual who has since been charged with child pornography-related offenses. Following a court-authorized search of Quinones’s residence and the seizure of his electronic devices, FBI special agents discovered a series of sexually explicit messages between Quinones, who was impersonating a woman, and a minor male victim, who Quinones lured into creating and sending sexually explicit videos. Quinones then threatened to post the victim’s material on the Internet unless the victim agreed to make additional sexually explicit content. For example, Quinones discussed an extortion scheme in a series of direct messages with another user on his Twitter account, urging the other user: “Threaten him to do more . . . I like making boys into slaves[.]”
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 Attorney Eric Silverberg is in charge of the prosecution.
The Defendant:
BRIAN QUINONES
Age: 30
Brooklyn, New YorkE.D.N.Y. Docket No. 22-CR-218
United States Obtains Warrant for Seizure of Airplane Owned by Russian Oil Company Valued at over $25 MillionRead the Press Release
The United States of America obtained a warrant to seize a Boeing 737-7JU aircraft owned by PJSC Rosneft Oil Company (Rosneft), a Russian integrated energy company headquartered in Moscow, Russia headed by Igor Ivanovich Sechin. The United States District Court for the Eastern District of New York authorized the seizure, finding probable cause that the Boeing aircraft was subject to seizure based on violations of the Export Control Reform Act (ECRA) and the recent sanctions issued against Russia.
Breon Peace, United States Attorney for the Eastern District of New York, Task Force KleptoCapture Director Andrew C. Adams, Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Jonathan Carson, Special Agent-in-Charge, US Department of Commerce, Bureau of Industry and Security, Office of Export Enforcement, New York Field Office (BIS), announced the unsealing of the seizure warrant.
“Today’s enforcement action demonstrates there is a price to pay for Russian companies and oligarchs that flagrantly evade sanctions that the United States has imposed in response to the unjustified war against the people of the Ukraine,” stated United States Attorney Peace. “This Office, together with our law enforcement partners, will relentlessly pursue the proceeds of unlawful conduct, be it on land, in the air, or at sea.”
Mr. Peace thanked the Justice Department’s National Security Division, Office of International Affairs, and the U.S. Treasury Department’s Office of Foreign Assets Control for their assistance in the investigation.
“By violating Commerce Department export controls, Rosneft has converted its jet into contraband. Today’s unsealing provides a roadmap to those in the private sector and to our foreign partners who are committed to upholding the rule of law – and to stifling the Russian state’s efforts to wage an illegal war – who will refuse to provide refuge and support to the operators of this aircraft as the United States pursues its seizure and forfeiture in aid of Ukraine,” said Task Force KleptoCapture Director Adams.
“Our enforcement action today makes clear that the U.S. Government will not tolerate Russian companies and oligarchs evading BIS export controls in order to support Russia’s war effort,” stated BIS Special Agent-in-Charge Carson. “BIS’s Office of Export Enforcement, working with our Kleptocapture partners, will continue to aggressively investigate export violations and bring violators to justice.”
According to the seizure warrant and affidavit unsealed today:
In response to Russia’s invasion of Ukraine, in February 2022, the U.S. Department of Commerce’s Bureau of Industry and Security issued sanctions against Russia. The sanctions impose export controls and license requirements to protect U.S. national security and foreign policy interests. The Russia sanctions expanded prohibitions on the export, reexport or in-country transfer of, among other things, U.S.-manufactured aircraft to or within Russia without a valid license or license exception for aircraft owned or controlled, or under charter or lease, by Russia and/or Russian nationals. In this case, these sanctions bar a plane that was built or manufactured in the United States from entering Russia without a valid license.
Since February 2022, when the Russia sanctions went into effect, the plane has left and reentered Russia at least seven times, in violation of federal law. The Boeing jet, which was manufactured in the United States, was last in the United States in March 2014, and is currently believed to be in, or traveling to or from, Russia.
Rosneft—which is headed by sanctioned oligarch Igor Ivanovich Sechin—owns the Boeing aircraft. The Boeing was flown from a foreign country to Russia in violation of the ECRA and regulations issued thereunder, including the Russia sanctions. The Boeing (pictured below) is believed to be valued at over $25 million.
The government’s case is being investigated by the Eastern District of New York’s International Narcotics and Money Laundering Section and the Criminal Division’s Money Laundering and Asset Recovery Section. Assistant United States Attorneys Francisco J. Navarro, Tara B. McGrath and Madeline M. O’Connor are investigating the case in partnership with Trial Attorney Barbara Levy.
The seizure action is being coordinated through the Justice Department’s Task Force KleptoCapture, an interagency law enforcement task force dedicated to enforcing the sweeping sanctions, export controls and economic countermeasures that the United States, along with its foreign allies and partners, has imposed in response to Russia’s unprovoked military invasion of Ukraine. Announced by the Attorney General on March 2, 2022, and run out of the Office of the Deputy Attorney General, the task force will continue to leverage all the department’s tools and authorities to combat efforts to evade or undermine the collective actions taken by the U.S. government in response to Russian military aggression.
E.D.N.Y. Docket No. 23-MJ-174
Colorado Man Charged with Sports Cards Fraud SchemeRead the Press Release
A complaint was unsealed this morning in federal court in Brooklyn charging Mayo Gilbert McNeil with conspiracy to commit wire fraud in connection with a scheme involving counterfeit sports trading cards. McNeil was arrested this morning in Denver and is scheduled to make his initial appearance this afternoon in the U.S. District Court for the District of Colorado. McNeil will be arraigned in the Eastern District of New York at a later date.
Breon Peace, United States Attorney for the Eastern District of New York, and Michael J. Driscoll, Assistant Director-in-Charge, FBI, New York Field Office, announced the arrest and charge.
“Protection from fraud extends to all consumers, regardless of what team they root for,” stated United States Attorney Peace. “As alleged, the defendant orchestrated a years’ long and far-reaching scheme to defraud sports trading cards enthusiasts and the sports memorabilia industry. Our Office is committed to addressing counterfeiting at all levels of the market.”
Mr. Peace expressed his appreciation to the New York City Police Department, which conducted this investigation with the FBI.
“As alleged, Mr. McNeil defrauded sports memorabilia collectors of more than $800,000 by intentionally misrepresenting the authenticity of the trading cards he was peddling when, in fact, they were counterfeit. The FBI remains committed to investigating fraud at all levels and bringing the subjects who engage in it to justice,” stated FBI Assistant Director-in-Charge Driscoll.
As set forth in court filings, between April 2015 and July 2019, the defendant conspired with others to sell and trade sports trading cards, including 1986 Fleer Michael Jordan rookie cards, with victims he found via the Internet and through online selling platforms. The defendant misrepresented that the sports trading cards he was offering were graded by a professional authentication company, when in reality the trading cards were not authentic. The defendant defrauded his victims of over $800,000 in cash and authentic sports trading cards that were traded for the counterfeits.
The case is being handled by the Office’s Business and Securities Fraud Section. Department of Justice Trial Attorney Patrick J. Campbell and Assistant United States Attorney Alexander Mindlin are in charge of the prosecution.
The Defendant:
MAYO GILBERT MCNEIL
Age: 82
Denver, ColoradoE.D.N.Y. Docket No. 23-MJ-203
Three Former New York City Correction Officers Plead Guilty to Sick Leave FraudRead the Press Release
Earlier today, in federal court in Brooklyn, former New York City correction officer Eduardo Trinidad pleaded guilty to federal program fraud, admitting that he fraudulently obtained his salary from the New York City Department of Correction (DOC) by taking sick leave even though he was able to work. On February 15, 2023, and February 27, 2023, respectively, former New York City correction officers Steven Cange and Monica Coaxum also pleaded guilty to the same charge. Today’s proceeding was held before United States Magistrate Judge Vera M. Scanlon. When sentenced, all three defendants face a maximum sentence of 10 years’ imprisonment.
Breon Peace, United States Attorney for the Eastern District of New York, Michael J. Driscoll, Assistant Director-in-Charge, New York Field Office (FBI), and Jocelyn E. Strauber, Commissioner, New York City Department of Investigation (DOI), announced the guilty pleas.
“The defendants have admitted stealing taxpayer funds by collecting their full salaries while falsely claiming they were too sick to work,” stated United States Attorney Peace. “Sick leave abuse is a plague on the New York City Department of Correction that puts fellow officers and inmates at risk during the ongoing staffing crisis in the jails. This Office is working with our federal and local law enforcement partners to identify those who exploit the sick leave policy and hold them accountable.”
DOI Commissioner Strauber stated: “These correction officers faked medical documentation to take sick leave they were not entitled to in the midst of a city jail staffing crisis. They violated DOC policy, and they broke the law. Their conduct — including travel around the country, partying, bowling, and home repairs, on stolen sick leave time — is an insult to the correction officers who do their jobs, who show up to work and risk their personal safety on a daily basis. I thank the United States Attorney’s Office for the Eastern District of New York and the Federal Bureau of Investigation for their partnership in bringing this case to a close.”
According to court documents and facts presented at the guilty plea proceedings, Cange fraudulently obtained more than $139,000 in salary while on sick leave from March 2021 to November 2022. During that period of time, Cange submitted more than 100 fraudulent medical notes to DOC claiming that he was at physical therapy or another medical provider when records subpoenaed from those providers demonstrate that Cange was not at those appointments. Law enforcement also observed Cange engaging in normal life activities with no apparent difficulty.
Coaxum fraudulently obtained more than $80,000 in salary while on sick leave from March 2021 to April 2022, and Trinidad, her fiancée, fraudulently obtained more than $119,000 in salary while on sick leave from June 2021 to October 2022. Although Coaxum claimed to suffer from multiple injuries, evidence collected by investigators showed that she was able to work. During her sick leave, Coaxum submitted nearly 50 fraudulent medical notes to DOC stating that she had gone to a medical appointment at a time when law enforcement determined she was elsewhere. Additionally, evidence showed that on some occasions when Coaxum claimed to be injured and at home, she was traveling and attending parties.
Trinidad also claimed that he was unable to work for over a year due to an injury. But video and photographic surveillance showed Trinidad performing home improvement work, bowling, and traveling abroad without any difficulty or help from equipment like an orthopedic boot, sling or cane which he used when attending required check-ins with DOC medical officials.
The defendants were arrested in November 2022 and resigned from the DOC in January 2023.
The government’s case is being handled by the Office’s Public Integrity Section. The government’s case is being prosecuted by Assistant United States Attorneys Andrew Grubin and Philip Pilmar.
The Defendants:
STEVEN CANGE
Age: 49
Brooklyn, NY
E.D.N.Y. Docket No. 23-CR-060 (NGG)
MONICA COAXUM
Age: 36
Harrison, NY
E.D.N.Y. Docket No. 23-CR-064 (LDH)
EDUARDO TRINIDAD
Age: 42
Yonkers, NY
E.D.N.Y. Docket No. 23-CR-051 (DG)
Bloods Gang Members Indicted for Sex Trafficking and Illegal Drug Distribution on Long IslandRead the Press Release
Earlier today, in federal court in Central Islip, a 15-count indictment was unsealed charging David M. Amin (D. Amin) and Bryce K. Amin (B. Amin), who are brothers, with sex trafficking by force, interstate prostitution, and distribution and possession with intent to distribute controlled substances, including fentanyl, heroin, cocaine and cocaine base. As alleged in court filings, D. Amin and B. Amin are both members of the Bloods street gang. D. Amin was arrested this morning and will be arraigned this afternoon before United States Magistrate Judge Lee G. Dunst. B. Amin is presently incarcerated on state narcotics charges 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), Rodney K. Harrison, Commissioner, Suffolk County Police Department (SCPD), and Errol D. Toulon, Jr., Suffolk County Sheriff, announced the indictment.
“As alleged, these two brothers used physical and sexual violence as well as the power of drugs to manipulate and coerce vulnerable female victims for their own financial gain,” stated United States Attorney Peace. “The federal charges unsealed today hold the defendants accountable for their despicable acts of sex trafficking and the related distribution of dangerous drugs in our communities on Long Island.”
Mr. Peace expressed his thanks to the Nassau County District Attorney’s Office and the Nassau County Police Department for their assistance with the case.
“The indictments of brothers David and Bryce Amin highlight HSI’s steadfast commitment in the fight against both human trafficking and the distribution of fentanyl in our Long Island communities,” stated HSI Special Agent-in-Charge Arvelo. “Bringing justice to victims of human trafficking and stopping the flow of illicit narcotics is a priority for this office. We will continue to work with our law enforcement partners and exhaust all of our resources to ensure vicious criminals like the Amin brothers who, as alleged, exploit young women and peddle poison in our communities are swiftly brought to justice.”
“The sexually depraved actions taken by the Amin brothers are nothing short of reprehensible,” stated SCPD Commissioner Harrison. “The Suffolk County Police Department is dedicated to working with its law enforcement partners to target perpetrators of human trafficking and it is my hope these arrests bring justice to their victims.”
“Thank you to all the law enforcement agencies that collaborated on this taskforce to take down these alleged gang members and sex traffickers and to get their dangerous drugs off our streets. Criminals have no place in our communities and the Suffolk County Sheriff’s Office is committed to continuing to work with our partners to keep our neighborhoods safe,” stated Suffolk County Sheriff Toulon.
Sex Trafficking
As set forth in the court filings, between January 2020 and March 2023, the defendants allegedly conspired to use violence and threats of violence to compel multiple women to engage in commercial sex acts for the defendants’ financial benefit. D. Amin and B. Amin recruited drug addicted women for their sex trafficking operation on Long Island, taking advantage of their vulnerability to coerce victims into prostitution who were beholden to the defendants’ supply of illegal drugs. These defendants controlled the money derived from that business and manipulated their victims into believing that they were actually in debt to the defendants. Additionally, D. Amin forced victims to have sex with him, which at times came with humiliating and degrading rules. D. Amin choked and struck his victims, left one or more victims stranded in public places without money, telephones or identification, deprived them of drugs to force withdrawal symptoms, and forced at least one victim to drink his blood after claiming that he was HIV positive. Similarly, B. Amin subjected the victims to violence and drug-related manipulation. In a recorded call from jail in January 2021, B. Amin boasted about one of his victims, saying “You can groom a person to do something they’re not used to doing . . . .When I tell her sit, she listens, she does whatever I tell her to do. She’s my little puppet.”
The majority of the sex trafficking activity occurred in Suffolk County in cars, apartments and hotels, including at locations in Bohemia, Islandia, Patchogue and Bayport, as well as at the Sayville Motor Lodge, which has since been closed. Additionally, at least one victim was forced to work in Virginia, in various hotels around the Norfolk area.
If you are a victim or have information about sex trafficking, call HSI at 1-866-347-2423. To get help from the National Human Trafficking Hotline, call 1-888-373-7888 or text HELP or INFO to BeFree (233733). HSI is ready to work with you in your native language, regardless of your immigration status.
Drug Trafficking
Further, the court filings allege that between August 2019 and March 2023, D. Amin conspired to distribute and possess with intent to distribute multiple controlled substances, including heroin, fentanyl, a fentanyl precursor known as “ANPP,” cocaine and cocaine base, including eight sales of narcotics to an undercover SCPD detective (Undercover). Specifically, between November 2022 and February 2023, D. Amin met the Undercover at various locations in Suffolk County, selling him/her a substance that masqueraded as heroin, but which oftentimes was actually a dangerous cocktail of fentanyl, heroin, cocaine and ANPP. Both defendants sold drugs through female trafficking victims to customers who were also paying them for commercial sex acts. These sales were usually advertised online as “party favors.” On December 22, 2021, B. Amin was arrested in Nassau County for distributing and possessing with intent to distribute a controlled substance containing cocaine base. On that occasion, B. Amin was caught while directing a victim to a date with “party favors,” and the purported customer was actually an undercover NCPD detective.
Searches executed today at D. Amin’s homes in Freeport and Wyandanch, as well as two storage units in Suffolk County, revealed numerous electronic devices, large sums of U.S. currency and two luxury vehicles, both registered to D. Amin.
The government’s case is being prosecuted by the Office’s Long Island Criminal Division. Assistant United States Attorney Megan E. Farrell is in charge of the prosecution.
The Defendants:
DAVID M. AMIN (also known as “Sonny B,” “Rico,” “Tone,” “Anthony,” and “Jonathan Santos”)
Age: 28
Coram, Freeport and Wyandanch, New YorkBRYCE K. AMIN (also known as “Busy B”)
Age: 23
Coram, New YorkE.D.N.Y. Docket No. 23-CR-92 (GRB)
Top Lieutenant and Head of Security for Rafael Caro Quintero Extradited from Mexico to Face Narcotics Trafficking and Firearms ChargesRead the Press Release
Ismael Quintero Arellanes, also known as “Fierro,” was arraigned today before United States Magistrate Judge Sanket J. Bulsara at the federal courthouse in Brooklyn on an indictment charging him with participating in a large-scale narcotics distribution conspiracy and using one or more firearms in connection with narcotic offenses. The defendant, a Mexican citizen, was arrested in Mexico on a provisional arrest warrant issued from the Eastern District of New York and subsequently extradited from Mexico to the United States on March 1, 2023. Quintero Arellanes was ordered detained pending trial.
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 extradition and arraignment.
“As alleged, the defendant was a top lieutenant and head of security for Rafael Caro Quintero, an infamous drug lord whose violent organization has for decades sent thousands of kilograms of drugs to the United States,” stated United States Attorney Peace. “Dismantling the leadership of drug trafficking organizations that have wreaked havoc here and abroad is a top priority for our Office.”
Mr. Peace extended his appreciation to the DEA’s office in Mexico City, the United States Marshals Service, the Department of Justice’s Office of International Affairs, and the Government of Mexico.
“Quintero Arellanes was the executor for RCQ's narcotics empire responsible for distributing drugs, violence, and death throughout Mexico and the United States," said DEA Special Agent in Charge Frank Tarentino. "This extradition marks another victory for American rule of law in bringing to justice drug traffickers who have caused the most harm in our communities. I commend the men and women who spent tireless hours on this investigation in the pursuit of Justice.”
According to the indictment and court filings, the defendant was a high-ranking member of the Caro Quintero DTO, a violent Mexican drug trafficking organization that was led by Rafael Caro Quintero.
As the leader of the drug trafficking organization, Caro Quintero employed numerous individuals, each of whom played a role to ensure the success of the organization, including “sicarios” or hit men who carried out acts of violence in Mexico such as murder and kidnappings to silence potential witnesses and retaliate against anyone who provided information to law enforcement; security personnel for the leadership of the enterprise; “plaza bosses” who controlled the enterprise’s territories; transporters of narcotics; and money launderers. Quintero Arellanes served as Caro Quintero’s top lieutenant and head of security. In that role, Quintero Arellanes served as Caro Quintero’s personal bodyguard, relayed messages and orders between Caro Quintero and other members of the organization to facilitate drug trafficking activities, and protected Caro Quintero to enable him to avoid capture.
For his conduct, Quintero Arellanes is charged with participating in an international heroin, methamphetamine and cocaine distribution conspiracy from February 2015 through June 2018 and an international marijuana distribution conspiracy from January 1980 through June 2018, as well as using firearms in relation to his drug trafficking organization.
Caro Quintero was arrested in Mexico on July 15, 2022 and is pending extradition to the United States.
The prosecution of Quintero Arellanes is the result of an ongoing Organized Crime Drug Enforcement Task Forces (OCDETF) investigation led by the United States Attorney’s Office for the Eastern District of New York and the DEA. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking, weapons trafficking, and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply. OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
The charges in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty. If convicted, the defendant faces up to life in prison.
The government’s case is being handled by the Office’s International Narcotics and Money Laundering Section. Assistant United States Attorneys Saritha Komatireddy, Francisco J. Navarro, Erin M. Reid, and Andrew D. Wang are in charge of the prosecution.
The investigation was led by the New York Strike Force, a crime-fighting unit comprising federal, state and local law enforcement agencies supported by the Organized Crime Drug Enforcement Task Force and the New York/New Jersey High Intensity Drug Trafficking Area. The Strike Force is based at the DEA’s New York Division and includes agents and officers of the DEA, New York City Police Department, New York State Police, Homeland Security Investigations, U.S. Internal Revenue Service Criminal Investigation Division, Bureau of Alcohol, Tobacco, Firearms and Explosives, U.S. Customs and Border Protection, U.S. Secret Service, United States Marshals Service, New York National Guard, Clarkstown Police Department, U.S. Coast Guard, Port Washington Police Department and New York State Department of Corrections and Community Supervision.
The Defendant:
ISMAEL QUINTERO ARELLANES
Age: 51
MexicoE.D.N.Y. Docket No. 15-CR-208 (S-3) (FB)
Staten Island Gang Member Indicted for Sex Trafficking and Sexual Exploitation of MinorsRead the Press Release
Earlier today, in federal court in Brooklyn, a five-count indictment was unsealed charging Justin Dixon, a member of the Crips street gang, with sex trafficking, coercion and enticement of a minor, sexual exploitation of a minor and felon in possession. On February 6, 2023, Dixon was arraigned on a complaint before United States Magistrate Judge Taryn A. Merkl and a permanent order of detention was issued.
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 indictment.
As set forth in court filings, in January 2023, Dixon allegedly used violence and threats of violence to compel the commission of commercial sex acts by a 14-year-old minor for his financial benefit. Dixon transported the minor victim – as well as other women – to a small geographical area off of Pennsylvania Avenue in East New York, Brooklyn, which is known as the “Penn Track” or the “Blade.” Dixon would then force the women to engage in prostitution and demanded that the proceeds of prostitution be turned over to him. Any resistance from the victims was met with violence.
Dixon used social media and other internet applications to establish relationships with potential victims, groom them and manipulate them into working for him as prostitutes. The 14-year-old minor was forced to live in a Staten Island house, along with Dixon and various other women. In that house, Dixon continued to enslave the women by forcing them to clean the house, cook for him and bathe him. The defendant would not allow the women to be clothed inside the house and would physically punish the women if they disobeyed any of these rules.
The investigation revealed that the defendant would call Jane Doe “tiny,” presumably due to her petite figure as a small fourteen-year-old. Dixon constantly overfed Jane Doe and consistently told her that she needed to eat more, in order to look older than her current age. The defendant also told Jane Doe he was arranging a trip to Florida for Jane Doe to have plastic surgery, including breast implants, in order to make her appear older than her current age.
The charges in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty. If convicted of sex trafficking of a minor through force, fraud and coercion, the defendant faces a mandatory minimum sentence of 15 years’ imprisonment and a maximum of life in prison.
If you are a victim or have information, there are several ways to contact the FBI: send a tip online at https://tips.fbi.gov or call 1-800-CALL-FBI. They are ready to work with you in your native language, regardless of your immigration status.
This prosecution is part of Project Safe Childhood, a nationwide initiative led by the Department of Justice to combat the epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The government’s case is being prosecuted by Assistant United States Attorney Lauren Elbert and Lorena Michelen.
The Defendant:
JUSTIN DIXON
Age: 32
Staten Island, New YorkE.D.N.Y. Docket No. 23-CR-90
Nigerian National Pleads Guilty to Multi-Million Dollar Fraud Schemes and Money LaunderingRead the Press Release
Earlier today, in federal court in Brooklyn, Joseph Modile, a Nigerian national, pleaded guilty to an indictment in the Eastern District of New York charging him with conspiracy to commit bank and wire fraud and aggravated identity theft, and an information filed in the Southern District of Texas and transferred to the Eastern District of New York, charging him with money laundering and wire fraud. The proceeding was held before United States Magistrate Judge Ramon E. Reyes, Jr. When sentenced, Modile faces up to 20 years’ imprisonment for each of the fraud counts and the money laundering count and a consecutive sentence of two years’ imprisonment for the aggravated identity theft count. Upon completion of his sentence, Modile faces deportation from the United States.
Breon Peace, United States Attorney for the Eastern District of New York, and Alamdar S. Hamdani, United States Attorney for the Southern District of Texas (SDTX), announced the guilty plea.
“With today’s guilty plea, Modile is revealed as a prolific fraudster and money launderer who has left a trail of fake documents, plundered bank accounts, and financial victims from Brooklyn all the way across the country,” stated United States Attorney Peace. “I commend all of the law enforcement agencies for pulling together the threads of the defendant’s complex schemes in order to hold him accountable for his multiple crimes.”
“A major figure in fraud has been taken out of the equation,” stated United States Attorney Hamdani. “Thanks to the partnerships in law enforcement and the sophisticated techniques used during the investigation, this prolific money launderer had no choice but admit his guilt and will be held accountable for his crimes.”
Mr. Peace expressed his thanks to the Federal Bureau of Investigation, U.S. Homeland Security Investigations, and the New York City Police Department, which conducted this investigation as part of an enterprise Priority Transnational Organized Crime (PTOC) of the Organized Crime Drug Enforcement Task Forces (OCDETF), the FBI’s Houston Field Office which led the OCDETF operation, the FBI’s Boston Field Office, U.S. Postal Inspection Service, Department of State, Diplomatic Security Service, New York County District Attorney’s Office, the Houston Police Department, and the Harris County District Attorney’s Office for their substantial assistance.
In a scheme that was charged in the Eastern District of New York, from January 2014 and September 2018, Modile and others defrauded victims, businesses, and financial institutions in the United States through a sophisticated home equity line of credit (HELOC) scheme involving a series of bank account takeovers. During this time, Modile and others also laundered proceeds from the bank account takeovers. In furtherance of the HELOC fraud scheme, Modile and others acquired personal identifying information (PII) of the actual holders of the targeted bank accounts at the financial institutions. The co-conspirators then used the PII to impersonate the actual holders of the targeted bank accounts, thereby gaining control of the accounts. In some cases, members of the conspiracy recruited “runners,” who impersonated the actual account holders inside bank branches using forged and fraudulent identification documents created at the direction of Modile and others. In most instances, the stolen funds were first deposited into fraudulent bank accounts set up and controlled by co-conspirators in the names of the actual victims from whom the money had been stolen. In other cases, the bank accounts into which the stolen funds were first deposited were in the names of sham corporations, which were opened using false and fraudulent identification. In total, Modile and others stole at least $5 million as part of the HELOC fraud scheme.
In a related scheme charged in the Eastern District of New York, in May 2018, Modile and others engaged in a separate Business Email Compromise scheme, using fraudulent emails and telephone calls to steal approximately $10.2 million from a victim company. The co-conspirators impersonated a contractor of an entity located in St. Paul, Minnesota, through a fraudulent email address and directed representatives of the entity to deposit the funds in an account controlled by members of the conspiracy. Modile and others then laundered those stolen funds through bank accounts controlled by members of the conspiracy.
Finally, as set forth in the information filed in the Southern District of Texas, from November 2017 until May 2018, Modile knowingly devised a scheme to defraud victims. Modile used his cellular phone to communicate with others about financial transactions for the purpose of executing his scheme to defraud. In particular, he directed an individual already convicted in Houston, Texas to withdraw cash from their bank account and provide to others. Modile also directed the individual in Houston to lie to their financial institution regarding the reason for withdrawing money from their account. In February 2018, Modile orchestrated and directed a substantial amount of money into an account of the individual in Houston. The money derived from wire fraud and Modile was aware the money came from unlawful activity.
This effort is part of an OCDETF operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF
The government’s case is being prosecuted by the Office’s Business and Securities Fraud Section. Assistant United States Attorney David Pitluck is in charge of the prosecution, with assistance from Paralegal Specialist William Daniels, along with Assistant United States Attorney Rodolfo Ramirez of the Southern District of Texas.
The Defendant:
JOSEPH MODILE
Age: 45
Los Angeles, CaliforniaE.D.N.Y. Docket Nos. 21-CR-108 and 23-CR-50 (DG)
Sanctions Evasion and Money Laundering Charges Unsealed Against Specially Designated Global Terrorist Mohammad Bazzi and Talal ChahineRead the Press Release
A three-count indictment was unsealed today in United States District Court for the Eastern District of New York charging Mohammad Ibrahim Bazzi, a Lebanese and Belgian citizen, and Talal Chahine, a Lebanese citizen, with conspiracy to conduct and cause United States persons to conduct unlawful transactions with a Specially Designated Global Terrorist, attempt to conduct and cause United States persons to conduct unlawful transactions with a Specially Designated Global Terrorist, and money laundering conspiracy. The indictment was returned under seal by a federal grand jury sitting in Brooklyn, New York on January 27, 2023, and relates to Bazzi and Chahine’s alleged activities in the United States, as directed from Lebanon.
Breon Peace, United States Attorney for the Eastern District of New York and Daniel J. Kafafian, Acting Special Agent-in-Charge, Drug Enforcement Administration (DEA), New Jersey Division (DEA), announced the charges.
“As alleged, Mohammad Bazzi thought that he could secretly move hundreds of thousands of dollars from the United States to Lebanon without detection by law enforcement. Today’s arrest proves that Bazzi was wrong,” stated United States Attorney Peace. “Our office is committed to ensuring that sanctions imposed by the U.S. government are respected and that terrorism financiers are starved of funds.”
“The defendants in this case attempted to provide continued financial assistance to Hizballah, a foreign terrorist organization responsible for death and destruction,” stated DEA Acting Special Agent-in-Charge Kafafian. “The men and women of DEA are committed to working with our law enforcement and foreign counterparts to disrupt and dismantle the operations of these organizations and those who choose to support them financially.”
In May 2018, the United States Department of the Treasury, Office of Foreign Assets Control (OFAC) designated Bazzi as a Specially Designated Global Terrorist for assisting in, sponsoring, and providing financial, material, and technological support and financial services to Hizballah, a foreign terrorist organization that, since the 1980s, engaged in numerous terrorist activities, including attacks against American military members, government employees, and civilians abroad. According to the OFAC designation, Bazzi is a key Hizballah financier who has provided millions of dollars to Hizballah over the years, generated from his business activities in Belgium, Lebanon, Iraq and throughout West Africa. As a result of the designation, Bazzi’s interest in any property in the United States was blocked, and all U.S. persons were generally prohibited from transacting business with, or for the benefit of, Bazzi.
As alleged, following Bazzi’s designation, Bazzi and Chahine conspired to force or induce an individual located in the United States (U.S. Person) to liquidate their interests in certain real estate assets located in Michigan and covertly transfer hundreds of thousands of dollars in proceeds of the liquidation out of the United States to Bazzi and Chahine in Lebanon without the requisite OFAC licenses, in violation of the International Emergency Economic Powers Act (IEEPA).
During recorded communications, Bazzi and Chahine proposed numerous methods to conceal from OFAC and law enforcement officials that Bazzi was both the source and destination of the proceeds of the sale and to create the false appearance that the U.S. Person was conducting legitimate arms-length transactions unrelated to Bazzi and Chahine. For example, Bazzi and Chahine proposed that the funds be transferred through:
- a third party in China as part of a fictitious purchase of restaurant equipment from a Chinese manufacturer;
- a third party in Lebanon as part of a fictitious real estate purchase;
- Chahine’s family members in Kuwait as part of fictitious intra-family loans; and
- as part of a fictitious franchising agreement as payment for the rights to operate a Lebanese-based restaurant chain throughout the United States.
Bazzi was arrested by Romanian law enforcement authorities upon his arrival in Bucharest today. The United States intends to seek Bazzi’s extradition to the Eastern District of New York to face the charges in the indictment. Each count in the indictment is punishable by up to 20 years imprisonment. The charges in the indictment are merely allegations, and the defendants are presumed innocent unless and until proven guilty.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF
The government’s case is being prosecuted by Assistant United States Attorneys Francisco J. Navarro, Jonathan P. Lax, Nomi D. Berenson, and Robert M. Pollack, with assistance provided by Trial Attorney Charles Kovats of the National Security Division’s Counterterrorism Section. Assistant United States Attorney Claire Kedeshian of the Office’s Asset Recovery Section is handling forfeiture matters. The Justice Department’s Office of International Affairs is assisting with the extradition in this case.
The Defendants:
MOHAMMAD BAZZI
Age: 58
Lebanon and BelgiumTALAL CHAHINE
Age: 78
LebanonE.D.N.Y. Docket No. 23-CR-041 (DLI)
Russian National Charged with Supplying U.S. Technology to the Russian and North Korean GovernmentsRead the Press Release
A five-count indictment was unsealed today in federal court in Brooklyn, New York charging Ilya Balakaev with various charges related to smuggling devices commonly used in counterintelligence operations out of the U.S. to Russia for the benefit of the Federal Security Service of the Russian Federation (FSB) and Democratic People’s Republic of Korea (“DPRK” or “North Korea”).
As alleged, between 2017 and the present, the defendant Ilya Balakaev entered into multiple contracts through his company Radiotester LLC with the FSB—the principal intelligence and security agency of the Russian government—to repair spectrum analyzers and signal generators. The devices that the defendant was tasked to repair were frequently used as part of counterintelligence operations to sweep for surveillance bugs and to transmit covert communications. Because the devices were not readily available in Russia, the defendant created a network of individuals in the U.S. to assist him in purchasing the equipment in the U.S. which he used to repair the FSB devices, in violation of U.S. sanctions.
The defendant worked closely with Russian government officials from FSB Center 8’s Military Unit 43753, the agency responsible for Russia’s communication security and cryptology. In furtherance of his scheme, the defendant entered into at least 10 contracts with FSB Military Unit 43753, purchased approximately 43 devices in the U.S., and traveled to the U.S. approximately 14 times in the span of approximately four years.
In addition to his scheme to evade Russian sanctions, the defendant also provided U.S. technology to a North Korean government official, in violation of U.S. sanctions against North Korea. The defendant contracted with the First Secretary of the North Korean Embassy to the Russian Federation, based in Moscow, to obtain hazardous gas detectors and software from the U.S. for the benefit of the North Korean government.
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), Special Agent in Charge Jonathan Carson., US Department of Commerce, Bureau of Industry and Security, Office of Export Enforcement, New York Field Office, Ivan Arvelo, Special Agent-in-Charge, Homeland Security Investigations, New York (HSI), Francis J. Russo, Director of Field Operations, U.S. Customs and Border Protection, New York Field Office (CBP) and Andrew Adams, Director, Task Force KleptoCapture, announced the charges.
“As alleged, the defendant violated U.S. law by procuring, smuggling, and repairing counterintelligence operation devices for the benefit of Russia’s secret police and the North Korean government,” stated United States Attorney Peace. “Today’s indictment demonstrates our Office’s commitment to vigorously prosecute those who evade sanctions for a profit, both for their wallet and for Russia as they continue their aggression against Ukraine.”
“The defendant allegedly operated schemes to smuggle software and devices from the United States and provide them to hostile foreign government services in violation of U.S. sanctions. FBI New York and our partners will continue to protect the national security of the United States by disrupting the procurement of sanctioned equipment and technology,” stated Assistant Director-in-Charge Driscoll.
“To prevent the continuance of violations identified in the indictment, the defendant is now subject to a Commerce temporary denial order, which restricts his ability to access U.S. technologies,” said Jonathan Carson, Special Agent-in-Charge of the New York Field Office, Office of Export Enforcement. “These coordinated actions highlight our vigilance and ability to leverage our unique combination of criminal and administrative enforcement authorities to address evasions of U.S. export controls.”
“U.S. Customs and Border Protection is uniquely positioned to enhance the safety of our country. We will continue to work with our partners to be exceptionally focused on addressing the threats posed by counterintelligence activities, terrorism, transnational criminal organizations, and others who wish to do us harm,” said Francis J. Russo, Director New York Field Office. “CBP’s combined efforts with our law enforcement partners in this case serve as a reminder that we will continue to combat and prosecute modern transnational criminal organizations.”
“From the outset of the Task Force, the Department has prioritized the investigation and prosecution of case involving criminal violations of our export controls pertaining to Russia. As today’s case demonstrates, facilitators like this defendant provide smuggling services for all manner of dangerous actors and regimes – it is not possible to disentangle the FSB’s smuggling networks from those servicing other sanctioned state actors, and we must support and applaud comprehensive charges like those set forth in the Eastern District’s indictment,” stated Task Force KleptoCapture Director Adams.
“As alleged, Balakaev and his network actively schemed to circumvent OFAC sanctions in support of enhancing the counterintelligence operations of the Federal Security Service of the Russian Federation (FSB) and the Democratic People’s Republic of Korea. Today’s indictment, on the one year anniversary of the Russian invasion of Ukraine, is a credit to the collaboration of the American law enforcement community to investigate and prosecute those who seek to support oppressive regimes worldwide,” said Ivan J. Arvelo, Special Agent in Charge for Homeland Security Investigations (HSI) in New York. “HSI and our partners will continue to aggressively pursue criminal charges against those who engage in actions aimed at compromising our national security.”
If convicted, the defendant faces a maximum of 75 years’ imprisonment. 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 Attorney Sara K. Winik is in charge of the prosecution, with assistance from Trial Attorney Scott A. Claffee of the National Security Division’s Counterintelligence and Export Control Section.
The Defendant:
ILYA BALAKAEV
AGE: 47
MOSCOW, RUSSIAE.D.N.Y. Docket No. 23-CR-79
Three of the Highest-Ranking MS-13 Leaders in the World Arrested on Terrorism and Racketeering ChargesRead the Press Release
Earlier today, in federal court in Central Islip, a four-count indictment was unsealed charging 13 of the highest-ranking MS-13 leaders in the world with directing the transnational criminal organization’s criminal activities in the United States, El Salvador, Mexico, and elsewhere, over the past two decades. Specifically, the defendants are charged with racketeering conspiracy, conspiracy to provide or conceal material support to terrorists, and narco-terrorism conspiracy. Four of the defendants are also charged with alien smuggling conspiracy which resulted in death.
On February 22, 2023, Vladimir Antonio Arevalo-Chavez, also known as “Vampiro de Monserrat Criminales” (Arevalo-Chavez), Walter Yovani Hernandez-Rivera, also known as “Baxter de Park View” and “Bastard de Park View” (Hernandez-Rivera), and Marlon Antonio Menjivar-Portillo, also known as “Rojo de Park View” (Menjivar-Portillo), were located by Mexican authorities and expelled from Mexico via the United States. When Arevalo-Chavez, Hernandez-Rivera, and Menjivar-Portillo arrived at George Bush Intercontinental Airport in Houston, Texas, they were placed under arrest by the Federal Bureau of Investigation (FBI) and Immigration and Customs Enforcement’s Homeland Security Investigations (HSI). Earlier this afternoon, the defendants had initial appearances in the Southern District of Texas, pending removal to the Eastern District of New York.
Four co-defendants, Jose Wilfredo Ayala-Alcantara, also known as “Indio de Hollywood,” 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 four 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. The United States will explore options for their extradition with the government of El Salvador.
Merrick B. Garland, United States Attorney General; Breon Peace, United States Attorney for the Eastern District of New York (EDNY); Christopher A. Wray, Director, FBI; Deputy Director and Senior Official Performing the Duties of the Director Tae D. Johnson, Homeland Security Investigations; and John J. Durham, Director of Joint Task Force Vulcan (JTFV), announced the indictment and arrests.
“Today’s action makes clear that there is no hiding place, anywhere in the world, for the leaders of violent gangs that terrorize American communities,” said Attorney General Merrick B. Garland. “The Justice Department will continue to use the full force of our law enforcement authorities to disrupt and dismantle MS-13 and other transnational criminal organizations and hold their leaders accountable.”
“The relentless efforts of our Office and law enforcement partners are systematically dismantling the MS-13 from the bottom to the very top, and we will not stop until this transnational criminal organization and its leaders are held accountable for the extreme violence they have inflicted on our district, the United States, and the countries where this scourge is based,” stated United States Attorney Peace. “Geographic borders will not shield violent actors from American justice.”
“Today’s indictment demonstrates the Department of Justice’s ongoing commitment to hold MS-13’s highest ranking leaders responsible for the terrorism and violence that they have unleased on communities from Long Island to El Salvador and elsewhere,” said JTFV Director Durham. “Only by combating MS-13’s command and control structure, and bringing the transnational criminal organization’s highest-ranking leaders to justice in the United States will we be able to break the persistent cycles of violence that have plagued our communities.”
“The FBI will continue to vigorously investigate and hold transnational organized groups like MS-13 and their leaders accountable for the continued violent and terrorist criminal activities they orchestrate,” said FBI Director Christopher Wray. “Today’s indictment demonstrates the FBI’s reach and commitment to seeking justice against those individuals who jeopardize American lives and liberty. We will never stop working in coordination with our international partners to protect our respective citizens from MS-13 and other gangs wherever they are.”
"As a member of Joint Task Force Vulcan, U.S. Immigration and Customs Enforcements’ Homeland Security Investigations is committed to protecting national security and the communities we serve against transnational criminal organizations,” said Deputy Director and Senior Official Performing the Duties of the Director Tae D. Johnson of U.S. Immigration and Customs Enforcement. “With our broad legal authorities and ability to investigate a wide spectrum of crimes, our HSI special agents will continue to maximize global efforts that detect, deter, disrupt, and dismantle criminal syndicates, like MS-13, and those who propagate associated illicit operations."
As set forth in court filings, the 13 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 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.” Formal extradition packages were submitted by the United States for 12 of those defendants, who either are or were in El Salvador custody, and remain pending. The two other defendants, Fredy Ivan Jandres-Parad, also known as “Lucky de Park View” and “Lacky de Park View,” and Cesar Humberto Lopez-Larios, also known as “El Grenas de Stoners” and “Oso de Stoners,” still are fugitives.
As further alleged, the defendants have engaged in a litany of 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. They have also used improvised explosive devices and grenades and operated military-style training camps for firearms and explosives. 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 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.
Several of these defendants, including Arevalo-Chavez, Hernandez-Rivera, and Menjivar-Portillo, coordinated MS-13’s expansion into Mexico (the Mexico Program), at the direction of the Ranfla Nacional, which was a coordinated effort to maintain MS-13’s continuity of operations in response to law enforcement pressure previously exerted by the United States and GOES. Additionally, the Mexico Program included forging alliances with Mexican cartels and engaged in narcotics trafficking, immigrant smuggling and extortion, kidnappings, and weapons trafficking. As alleged in the indictment, the MS-13’s Mexico Program murdered some migrants bound for the United States, including suspected members of the rival 18th Street gang and MS-13 members attempting to flee MS-13 in El Salvador without permission. Finally, drug trafficking was an important part of MS-13’s money-making operation, especially in Mexico, and the defendants used MS-13’s large membership in the United States to generate financial support for MS-13’s terrorist activities 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 U.S. Marshals Service; and the U.S. Bureau of Prisons. In addition, HSI also plays a critical role in JTFV.
U.S. Attorney Peace expressed his sincere thanks to the FBI’s Salt Lake City, Sacramento, Los Angeles, Newark and Houston Field Offices, with critical support provided by the Criminal Investigative Division’s Safe Streets Gang Unit, and HSI’s National Gangs and Violent Crime Unit, who spearheaded this investigation. Additionally, FBI Legal Attaché in Mexico City, HSI Mexico, and the United States Customs and Border Protection Officers and Area Port Director Shawn Polley at the George Bush Intercontinental Airport in Houston provided critical support in connection with the arrests as well as the U.S. Attorney's Office for the Southern District of Texas for handling the initial appearance.
Further, U.S. Attorney Peace recognized 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 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.
The charges announced today are allegations, and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law. If convicted, the defendants face a maximum sentence of life in prison, and the four defendants charged with alien smuggling conspiracy, which resulted in death, also are eligible for the death penalty.
The government’s case is being prosecuted by Assistant U.S. Attorneys James Donnelly, Matthew Shepherd and Stewart 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.
Defendants 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:
JOSE WILFREDO AYALA-ALCANTARA (also known as “Indio de Hollywood”)
Age: 55JORGE 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)
Ozy Media and Its Founder Carlos Watson Indicted in a Years-Long Multi-Million Dollar Fraud SchemeRead the Press Release
Updated Press Release
An indictment was unsealed this morning in federal court in Brooklyn charging OZY Media Inc. (Ozy), a media and entertainment company headquartered in Mountain View, California, and its founder and Chief Executive Officer, Carlos Watson, with conspiracy to commit securities fraud and conspiracy to commit wire fraud in connection with a scheme to defraud Ozy’s investors and lenders by making material misrepresentations about Ozy’s financial and business assets. Watson is also charged with aggravated identity theft for his role in the impersonation of multiple media company executives in communications with Ozy’s lenders and prospective investors in furtherance of the fraud schemes.
Watson was arrested this morning and will be arraigned later today before United States Magistrate Judge Cheryl L. Pollak. If convicted, Watson faces a mandatory minimum sentence of two years’ imprisonment and a maximum sentence of 37 years’ imprisonment.
Watson’s co-conspirators Samir Rao, Ozy’s Chief Operating Officer, and Suzee Han, Ozy’s Chief of Staff from June 2019 to October 2021, previously pleaded guilty to charges relating to their roles in the scheme. The U.S. Securities and Exchange Commission (SEC) is taking concurrent enforcement action.
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 indictment.
“As the indictment today alleges, Watson repeatedly attempted to entice both investors and lenders through a series of deliberate deceptions and fabrications. The FBI and our partners in law enforcement will hold any individual willing to defraud investors and financial institutions accountable in the criminal justice system,” stated Assistant Director-in-Charge Driscoll.
The Scheme
As alleged in the indictment and court documents, Ozy is a media and entertainment company whose businesses include digital newsletters, television production, podcasts, and live events, the most prominent of which is a live festival known as “Ozy Fest.” Watson founded Ozy in 2012 and has served as the company’s Chief Executive Officer since its inception.
Between approximately 2018 and 2021, Watson and his co-conspirators, including Rao and Han, orchestrated a scheme to defraud investors in and lenders to Ozy of tens of millions of dollars through fraudulent misrepresentations and omissions about key aspects of Ozy’s business, including Ozy’s financial results, debts, and audience size. In addition, Watson and his co-conspirators lied to prospective investors about who else might be investing in Ozy, the existence and size of acquisition offers received by Ozy, the existence and timing of “Series C” and “Series D” financing rounds by Ozy, and the existence and terms of Ozy’s business contracts — going so far as to direct Ozy employees to create fake contracts with forged signatures to provide in due diligence. On multiple occasions, when faced with questions from lenders or potential investors, Watson and his co-conspirators assumed the identities of and impersonated actual media company executives to cover up their prior fraudulent misrepresentations.
Forged Cable Television Contract and Impersonation of Media Executive
In December 2019, Watson and his co-conspirators attempted to induce a bank to lend Ozy money based on misrepresentations and omissions about Ozy’s business. Watson and his co-conspirators sought to secure the loan with anticipated revenues from a second season of an Ozy television show. However, the contract between Ozy and the show’s cable network for the second season of the show was still under negotiation. To induce the bank to make the loan sooner, Watson directed Ozy’s then-Chief Financial Officer (CFO) to send the bank a fake signed contract between Ozy and the cable network purporting to be for the second season. When the then-CFO refused, Rao, with Watson’s approval, sent the fake contract — which contained terms favorable to Ozy and a forged signature — to the bank, copying the then-CFO. Later that day, the then-CFO emailed Watson and Rao to say that she was resigning effective immediately. She explained, “this . . . is illegal. This is fraud. This is forging someone’s signature with the intent of getting an advance from a publicly traded bank.” She continued, “To be crystal clear, what you see as a measured risk — I see as a felony.”
In subsequent months, Watson and his co-conspirators continued to attempt to induce the bank to lend Ozy several million dollars based on misrepresentations and omissions, including regarding the expected revenue from the second season of the Ozy television show. During these discussions, the bank requested to speak to a representative of the cable network. To conceal the lies about Ozy’s relationship with the cable network and the status and terms of their agreement, Rao, with Watson’s approval, created a fake email address in the name of an actual executive of the cable network, which Rao used to impersonate the executive and communicate with the bank about the potential loan.
Attempted Fraudulent Investment and Impersonation of Another Media Executive
From approximately November 2020 through February 2021, Watson and his co-conspirators attempted to induce a financial institution to invest up to $45 million in Ozy by means of material misrepresentations and omissions regarding Ozy’s historical and projected financial results, debts, and business relationships. Had the full $45 million investment occurred as intended, $6 million of the $45 million would have been paid to Watson personally.
As part of its due diligence process, the financial institution asked Watson and Rao to arrange a meeting with someone from a well-known online video service that Watson and his co-conspirators claimed had paid Ozy nearly $6 million in licensing revenue for “The Carlos Watson Show.” This was another misrepresentation — Ozy was never paid by this online video service for Ozy content. Because Ozy did not in fact have any business relationship with the online video service, Watson and Rao agreed that Rao would impersonate a media executive at the online video service in communications with the financial institution. On or about January 28, 2021, Rao, with Watson’s agreement, created a fake email address in the name of the media executive, which he used to correspond with representatives of the financial institution.
On or about February 2, 2021, Rao had a call with employees of the financial institution during which he impersonated a media executive from the online video service using a voice alteration application that he downloaded onto his cellular telephone to mask his voice during the call. During the call, Watson was in the same room as Rao, and texted Rao instructions about what to say and what not to say on the call. Shortly after the call, one of the employees of the financial institution contacted the actual media executive of the online video service, who confirmed that he had not been on the call and that the online video service had no role in the production of The Carlos Watson Show. When members of the financial institution later spoke with Watson, he falsely claimed that Rao had acted alone and as a result of a mental breakdown.
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 Business and Securities Fraud Section. Assistant United States Attorneys Jonathan Siegel, Dylan A. Stern, and Gillian Kassner are in charge of the prosecution, with assistance from Paralegal Specialist Jake Menz.
The Defendants:
CARLOS WATSON
Age: 53
Mountain View, CaliforniaOZY MEDIA, INC.
Mountain View, CaliforniaE.D.N.Y. Docket No. 23-CR-82 (EK)
Damian Williams and Breon Peace Announce New Voluntary Self-Disclosure Policy for United States Attorney's OfficesRead the Press Release
Earlier today, Damian Williams, United States Attorney for the Southern District of New York and Chair of the Attorney General’s Advisory Committee (AGAC) and Breon Peace, United States Attorney for the Eastern District of New York and the Chair of the White Collar Fraud Subcommittee of the AGAC, announced the implementation of the new United States Attorney’s Offices’ Voluntary Self-Disclosure Policy. The policy, which is effective immediately, details the circumstances under which a company will be considered to have made a voluntary self-disclosure (VSD) of misconduct to a United States Attorney’s Office (USAO). The policy provides transparency and predictability to companies and the defense bar concerning the concrete benefits and potential outcomes in cases where companies voluntarily self-disclose misconduct, fully cooperate, and timely and appropriately remediate. The goal of the policy is to standardize how VSDs are defined and credited by USAOs nationwide, and to incentivize companies to maintain effective compliance programs capable of identifying misconduct, expeditiously and voluntarily disclose and remediate misconduct, and cooperate fully with the government in corporate criminal investigations. The policy was developed pursuant to the Deputy Attorney General’s September 15, 2022 memorandum, “Further Revisions to Corporate Criminal Enforcement Policies Following Discussions with Corporate Crime Advisory Group” (Monaco Memo), which directed each Department of Justice (DOJ) component to develop and publish a VSD policy.
“The new Voluntary Self-Disclosure Policy sets a nationwide standard for how U.S Attorney’s Offices will determine whether a company has made a voluntary self-disclosure, and makes transparent the specific, tangible benefits to a company for making a voluntary self-disclosure, fully cooperating, and remediating the criminal conduct” stated United States Attorney Breon Peace. “As a result, no matter where in the country a company operates, it can rely on receiving the same treatment and benefits for voluntarily self-disclosing criminal conduct to a U.S. Attorney’s Office. We hope and expect that companies, as good corporate citizens, will take advantage of this new policy to report criminal misconduct by employees and agents when they become aware of it, so that individual wrongdoers can be held accountable. When they do, they will have far better and more predicable outcomes under this policy.”
U.S. Attorney Damian Williams said: “The new Voluntary Self-Disclosure Policy is an important step forward in encouraging corporate accountability. This transparent and clearly delineated policy allows for more predictable outcomes, and seeks to incentivize corporations to do the right thing by reporting wrongdoing before detected by regulators and law enforcement. We hope that this new policy has a long-lasting, nationwide effect in promoting honest corporate culture and leads to more companies getting ahead of financial malfeasance before authorities come to them.”
The Monaco Memo instructed that each DOJ component that prosecutes corporate crime review its policies on corporate voluntary self-disclosure and, if there was no formal written policy to incentivize self-disclosure, draft and publicly share such a policy. In response, the AGAC, under the leadership of U.S. Attorney Williams, requested that the White Collar Fraud Subcommittee, under the leadership of U.S. Attorney Peace, develop such a policy. The policy announced today was prepared by a Corporate Criminal Enforcement Policy Working Group comprised of U.S. Attorneys from geographically diverse districts, including U.S. Attorney Peace, as well as U.S. Attorney for the Eastern District of Virginia Jessica Aber, U.S. Attorney for the District of Connecticut Vanessa Avery, U.S. Attorney for the District of Hawaii Clare Connors, U.S. Attorney for the Eastern District of North Carolina Michael F. Easley, Jr., U.S. Attorney for the Northern District of California Stephanie Hinds, U.S. Attorney for the Western District of Virginia Christopher Kavanaugh, and U.S. Attorney for the District of New Jersey Philip Sellinger. Assistant U.S. Attorney Amanda Riedel, White Collar Crimes Coordinator for the Executive Office for U.S. Attorneys, also participated in the development of the policy.
Under the new VSD policy, a company is considered to have made a VSD if it becomes aware of misconduct by employees or agents before that misconduct is publicly reported or otherwise known to the DOJ, and discloses all relevant facts known to the company about the misconduct to a USAO in a timely fashion prior to an imminent threat of disclosure or government investigation. A company that voluntarily self-discloses as defined in the policy and fully meets the other requirements of the policy, by—in the absence of any aggravating factor—fully cooperating and timely and appropriately remediating the criminal conduct (including agreeing to pay all disgorgement, forfeiture, and restitution resulting from the misconduct), will receive significant benefits, including that the USAO will not seek a guilty plea; may choose not to impose any criminal penalty, and in any event will not impose a criminal penalty that is greater than 50% below the low end of the United States Sentencing Guidelines (USSG) fine range; and will not seek the imposition of an independent compliance monitor if the company demonstrates that it has implemented and tested an effective compliance program.
The policy identifies three aggravating factors that may warrant a USAO seeking a guilty plea even if the other requirements of the VSD policy are met: (1) if the misconduct poses a grave threat to national security, public health, or the environment; (2) if the misconduct is deeply pervasive throughout the company; or (3) if the misconduct involved current executive management of the company. The presence of an aggravating factor does not necessarily mean that a guilty plea will be required; instead, the USAO will assess the relevant facts and circumstances to determine the appropriate resolution. If a guilty plea is ultimately required, the company will still receive the other benefits under the VSD policy, including that the USAO will recommend a criminal penalty of at least a 50% and up to a 75% reduction off the low end of the USSG fine range, and that the USAO will not require the appointment of a monitor if the company has implemented and tested an effective compliance program.
In cases where a company is being jointly prosecuted by a USAO and another DOJ component, or where the misconduct reported by the company falls within the scope of conduct covered by VSD policies administered by other DOJ components, the USAO will coordinate with, or, if necessary, obtain approval from, the DOJ component responsible for the VSD policy specific to the reported misconduct when considering a potential resolution. Consistent with relevant provisions of the Justice Manual and as allowable under alternate VSD policies, the USAO may choose to apply any provision of an alternate VSD policy in addition to, or in place of, any provision of its policy.
مكتب المدعي العام الأمريكي للمقاطعة الشرقية لمدينة نيويورك ينضم إلى وزارة الأمن الداخلي، وزارة الخارجية ومتحف السميثونيان الوطني للفن الآسيوي في أكبر إعادة لممتلكات حضارية مسروقة إلى اليمنRead the Press Release
واشنطن – مساء الأمس، قام مكتب المدعي العام الأمريكي للمقاطعة الشرقية لمدينة نيويورك ووزارة الأمن الداخلي الأمريكية ووزارة الخارجية الأمريكية ومعهد سميثونيان بالاشتراك في أحتفال تاريخي بإعادة 77 قطعة من ممتلكات الفن الحضاري المسروق والتي قام مسئولي حفظ القانون الأمريكي بالتحفظ عليها إلى حكومة جمهورية اليمن.
تشمل هذه الآثار 64 من الرؤوس الحجرية المحفورة و11 من صفحات مخطوطة للقرآن الكريم، وطبق من البرونز به كتابة، ونصب جنائزي من معان أو حضارات معين القبلية من المرتفعات الشمالية - الغربية في اليمن والتي تعود إلى القرن الأول قبل الميلاد.
تم مصادرة الرؤوس الحجرية المنحوتة ال 64 إلى الولايات المتحدة عن طريق تنفيذ أمر مصادرة قام به مكتب المدعي العام الأمريكي للمقاطعة الشرقية لمدينة نيويورك متعلق بالإقرار بالذنب الخاص بمهرب للآثار يدعى موسى خولي ومعروف باسم "موريس خولي" في شهر أبريل 2012. وطبقا للشكوى القضائية المتعلقة بالمصادرة، تم تهريب الرؤوس الحجرية المنحوتة ال 64 إلى الولايات المتحدة من دولة الأمارات العربية المتحدة مع مراسلات وإيصالات تحتوي على العديد من المعلومات الغير متناسقة وتم التحفظ عليها من منزل ومعرض خولي. تم مصادرة آثار أخرى في نفس القضية وإعادتها إلى مصر في شهر أبريل 2015.
صرح المدعى العام الأمريكي بريون بيس أن "مكتبنا ليفخر أن العمل الذي قام به في هذه القضية أدى إلى إعادة هذه الآثار الثقافية الهامة إلى موطنها الأصلي في اليمن".
صرح القائم بإعمال مساعد مدير تحقيقات وزارة الأمن الداخلي التنفيذي ستيف ك. فرانسيس أن "يتشرف مكتب تحقيقات وزارة الأمن الداخلي أن يعمل يدا بيد مع شركائنا الذين يشملوا وزارة الجمارك وتأمين الحدود الأمريكية ووزارة الخارجية الأمريكية ومكتب المدعي العام الأمريكي للمقاطعة الشرقية لمدينة نيويورك ومعهد سميثونيان والسفير محمد الحضرمي لإعادة كنز الآثار هذا إلى شعب اليمن،" كما أضاف أنه "كثيرا ما يحدث أن يتم إعطاء قيمة مالية للممتلكات والفن والتحف المسروقة في السوق، ولكن القيمة التاريخية والأهمية الحضارية لهذه الآثار تفوق بكثير أي قيمة مالية. أن مكتب تحقيقات وزارة الأمن الداخلي يفخر بأنه لعب دورا في وضع اليد واسترجاع هذا الأرث الحضاري الذي لا يُقدر بمال إلى الشعب اليمني ليستمتعوا به لأجيال قادمة".
صرح السفير محمد الحضرمي "بالنيابة عن حكومة اليمن، أعبر عن أمتناني الجزيل للحكومة الأمريكية وخاصة وزارة الأمن الداخلي الأمريكية ووزارة الخارجية الأمريكية ومكتب المدعي العام الأمريكي للمقاطعة الشرقية لمدينة نيويورك لكل الجهد المبذول في استرجاع وإعادة هذه الآثار اليمنية. منذ بداية الانقلاب الحوثي في اليمن، أضحى أرثنا وتاريخنا تحت الهجوم، وأن سفارة اليمن ستظل مستمرة في تواصلها مع الحكومة الأمريكية لتعقب واسترجاع الممتلكات والأرث التاريخي المسروق الخاص باليمن. أود أيضا أن أؤكد على أمتناني الشديد لمتحف السميثونيان الوطني للفن الآسيوي لموافقته على الاحتفاظ بهذه الآثار بصفة مؤقتة حتى يتم اعادتها بالكامل إلى اليمن في المستقبل".
يشكل إعادة هذه الآثار المسروقة علامة فارقة في العلاقات الأمريكية - اليمنية حيث إن انتهاء التحقيق الأمريكي الدؤوب للتعرف على وتحديد أماكن هذه الممتلكات الحضارية والتحفظ عليها والتأكد من مكانتها هو تاريخيا أكبر عدد من هذه الآثار التي قامت الحكومة الأمريكية باعادتها إلى المسئولين اليمنين منذ ما يقرب من 20 عاما.
قامت حكومة اليمن بالتوصل إلى أتفاق مع متحف السميثونيان الوطني للفن الآسيوي للأحتفاظ بهذه الآثار لمدة عامين قابلة للتمديد بطلب من الحكومة اليمنية، وستقوم السفارة بتقديم النصح بخصوص الوصول والبحوث والمحافظة على هذه القطع.
قام مساعد المدعى العام الأمريكي كلير س. كاديشيان من القسم الجنائي، قطاع استرجاع الممتلكات، بالأدعاء في هذه القضية.
المتهمين:
موسى خولي، والمعروف بإسم "موريس خولي"
العمر: 38 سنوات
بروكلين، نيويورك
سجل المقاطعة الشرقية لمدينة نيويورك رقم: CR 11-00340 (EDNY) (ERK)
الولايات المتحدة الأمريكية ضد العديد من الآثار والممتلكات الحضارية الُمتحفظ عليها بأسم آثار وندسور و/أو موسى خولي وشركائه CV 11-2889 (ERK).
U.S. Attorney's Office for Eastern District of New York Joins Department of Homeland Security, Department of State and Smithsonian's National Museum of Asian Art for the Largest Repatriation of Stolen Cultural Property to YemenRead the Press Release
Today, the U.S. Attorney’s Office for the Eastern District of New York, U.S. Department of Homeland Security (DHS), U.S. Department of State and the Smithsonian Institution participated in a milestone repatriation ceremony returning 77 pieces of stolen cultural property seized by U.S. law enforcement officials to the Republic of Yemen Government.
The antiquities included 64 relief carved stone heads, 11 Qur’an manuscript pages, a bronze inscribed bowl, and a Funerary Stele from Ma’în or Minaean tribal cultures in the highlands of North-West Yemen dating back to the 1st century BCE.
The 64 relief carved stone heads were forfeited to the United States in connection with an Eastern District of New York civil forfeiture action related to the April 2012 guilty plea of an antiquities smuggler, named Mousa Khouli, also known as “Morris Khouli.” As alleged in the government’s forfeiture complaint, the 64 relief carved stone heads were smuggled into the United States from the United Arab Emirates with correspondence and invoices that contained multiple inconsistencies and were seized from the home and gallery of Khouli. Other antiquities that were seized in this case were forfeited and subsequently repatriated to Egypt in April 2015.
“Our Office is proud that the work in our case is leading to these important cultural antiquities returning to their rightful home in Yemen,” stated United States Attorney Breon Peace.
“Homeland Security Investigations is honored to stand with our partners including U.S. Customs and Border Protection, the U.S. Department of State, the U.S. Attorney’s Office for the Eastern District of New York, the Smithsonian Institution, and Ambassador Mohammed Al-Hadhrami to return these treasured antiquities to the people of Yemen,” said HSI Acting Executive Associate Director Steve K. Francis. “Looted cultural property, art, and antiquities are often assigned a dollar value in the marketplace; however, the historical and cultural significance of these artifacts extends beyond any monetary value. HSI is proud to have played a role in the recovery and return of this priceless cultural heritage back to the Yemeni people so they can enjoy it for generations to come.”
Ambassador Mohammed Al-Hadhrami: “On behalf of the Government of Yemen, I express my deep gratitude to the US Government, in particular to the U.S. Department of Homeland Security, the Department of State and US Attorney’s Office for the Eastern District of New York for all efforts exerted in the retrieval and return of these Yemeni artifacts. Ever since the Houthis’ coup in Yemen, our heritage and history have been under attack. The Embassy of Yemen will continue its close engagement with the U.S. Government in pursuit of the restitution of Yemen’s stolen cultural heritage and property. I also affirm my substantial appreciation to the Smithsonian’s National Museum of Asian Art for agreeing to temporarily hold these antiquities until they are fully repatriated back to Yemen in the future.”
The return of these stolen antiquities marks a significant milestone in U.S.-Yemen relations, as the culmination of extensive U.S. investigative work to identify, locate, seize and confirm the status of this cultural property denotes historically the largest number of antiquities that have been returned by the U.S. government to Yemeni officials in nearly 20 years.
The Republic of Yemen Government and the Smithsonian’s National Museum of Asian Art have entered into a two-year custodial agreement with the option to renew at the request of the Republic of Yemen Government. The Embassy will advise on access to, research on and conservation of the objects.
The government’s case was prosecuted by Assistant United States Attorney Claire S. Kedeshian of the Criminal Division, Asset Recovery Section.
The Defendant:
MOUSA KHOULI, also known as “Morris Khouli”
Age: 38
Brooklyn, NYE.D.N.Y. Docket No. CR 11-00340 (EDNY) (ERK)
United State of America v. Various Antiquities, Cultural Property and Assets held in the name of Windsor Antiques and/or Mousa Khouli, et. al. CV 11-2889 (ERK)
Two Defendants Convicted of Distributing Fentanyl and Heroin Causing OverdosesRead the Press Release
A federal jury today convicted Keith Wyche, also known as “Marco,” of distributing fentanyl which resulted in the fatal overdose of a 43-year-old Staten-Island resident on April 18, 2017. Wyche and co-defendant Oneil Allen were also convicted of distributing heroin to a 28-year old woman on October 27, 2017, leading to her suffering serious bodily injury. In addition, the two men were convicted of conspiring to distribute and possess with intent to distribute heroin and fentanyl, and distributing those narcotics. The verdict followed a three-week trial in federal court in Brooklyn before United States District Judge Dora L. Irizarry. When sentenced, both defendants face a mandatory minimum sentence of 20 years’ imprisonment.
Breon Peace, United States Attorney for the Eastern District of New York, James E. Dennehy, Special Agent-in-Charge, Federal Bureau of Investigation, Newark Field Office (FBI), and Keechant L. Sewell, Commissioner, New York City Police Department (NYPD), announced the verdict.
“With today’s verdict, two drug dealers who sold lethal drugs without any regard for the lives they were endangering, have received a powerful response from the jury holding them responsible for their crimes,” stated United States Attorney Peace. “The opioid epidemic has had a devastating effect on our district, with Staten Island bearing a terrible toll, and this Office will continue working tirelessly to reduce the number of victims and the availability of dangerous drugs.”
“Dealers and pushers are hooking users with a dangerously addictive mix of drugs that shouldn’t ever be used outside of a medical environment. Mr. Wyche and Mr. Allen would text customers first thing in the morning to keep their clientele coming back. Their goal was to make more money, disregarding one man’s life and the lives of others to whom they sold. The FBI Newark Transnational Organized Crime Task Force has a message for criminals at the root of this growing epidemic plaguing our communities - there is a federal prison cell waiting for you as well,” stated FBI Special Agent-in-Charge Dennehy.
“Abuse of heroin and the deadly additive fentanyl has cut a wide swath across New York City and our nation, affecting people in all neighborhoods, from all walks of life,” stated NYPD Commissioner Sewell. “To combat this scourge, we seek to shut down the supply of illegal drugs and, ultimately, to save lives. That is why NYPD detectives probe every overdose to determine how the narcotics were obtained, and it was those efforts that led to today’s verdict. I commend the investigators in this case, and the strong collaboration of the NYPD and our law enforcement partners, all of whom are helping to stem the opioid crisis.”
As proven at trial, Wyche and Allen ran a narcotics delivery service, distributing heroin and fentanyl, among other drugs, in Staten Island. The defendants used a stash house in New Jersey to package and prepare narcotics, and traveled daily into Staten Island to sell their illicit product. On the days they distributed narcotics, they would alert customers early in the morning with text messages reading “Good Morning” or “Rise and Shine,” and then coordinate meetups with customers.
On April 18, 2017, the father of a 43-year old Staten Island man (“John Doe”) found his son dead in a bathroom of a residence in Staten Island. A hypodermic needle, tourniquet, and glassines containing fentanyl were on and around the body. By reviewing the deceased victim’s phone, NYPD detectives found a series of text messages from a number labeled “Marco 5.” These messages began with a text from the contact “Marco 5” that started with “Rise and Shine,” and showed that the user of this phone had sold narcotics to John Doe in the hours before his overdose.
On October 27, 2017, NYPD Officers responded to a 911 call for a 28-year old woman (“Jane Doe”) who was reported as unconscious inside a vehicle in Staten Island. After first responders administered several doses of Narcan to Jane Doe, she regained consciousness and was transported to a hospital. A review of messages on Jane Doe’s phone showed similar messages to those found on John Doe’s phone, including a message reading “Rise and Shine” on the day of Jane Doe’s overdose. Jane Doe testified at trial that she purchased narcotics from the defendants and later helped law enforcement gather evidence against them.
The government’s case is being prosecuted by Assistant United States Attorneys Gilbert M. Rein, Irisa Chen, and James P. McDonald, with assistance from Paralegal Specialists Teri Carby and Eileen Rosado.
The Defendants:
KEITH WYCHE (also known as “Marco”)
Age: 38
Staten Island, New YorkONEIL ALLEN (also known as “James”)
Age: 31
Staten Island, New YorkE.D.N.Y. Docket No. 18-CR-561 (S-1) (DLI)
Ex-Mexican Secretary of Public Security Genaro Garcia Luna Convicted of Engaging in a Continuing Criminal Enterprise and Taking Millions in Cash Bribes from the Sinaloa CartelRead the Press Release
Genaro Garcia Luna, the former Secretary of Public Security in Mexico from 2006 to 2012, was convicted today by a federal jury in Brooklyn of all five counts of a superseding indictment charging him with engaging in a continuing criminal enterprise that includes six drug-related violations, international cocaine distribution conspiracy, conspiracy to distribute and possess with intent to distribute cocaine, conspiracy to import cocaine, and making false statements. The verdict followed a four-week trial before United States District Judge Brian M. Cogan. When sentenced, Luna faces a mandatory minimum sentence of 20 years’ imprisonment and a maximum of life in prison.
Breon Peace, United States Attorney for the Eastern District of New York, Anne Milgram, Administrator, U.S. Drug Enforcement Administration (DEA), and Ivan J. Arvelo, Special Agent-in-Charge, Homeland Security Investigations, New York (HSI), announced the verdict.
“Garcia Luna, who once stood at the pinnacle of law enforcement in Mexico, will now live the rest of his days having been revealed as a traitor to his country and to the honest members of law enforcement who risked their lives to dismantle drug cartels,” stated United States Attorney Peace. “It is unconscionable that the defendant betrayed his duty as Secretary of Public Security by greedily accepting millions of dollars in bribe money that was stained by the blood of Cartel wars and drug-related battles in the streets of the United States and Mexico, in exchange for protecting those murderers and traffickers he was solemnly sworn to investigate. Today’s verdict is a shining light for the rule of law, right over wrong, and justice over injustice for all those who have suffered as a result of the defendant’s deplorable crimes.”
“Today’s conviction of Genaro Garcia Luna clearly shows that DEA will stop at nothing to pursue corrupt political officials who engage in drug trafficking and violence,” said DEA Administrator Anne Milgram. “Garcia Luna, the former Secretary of Public Security in Mexico, received millions of dollars in bribes from the Sinaloa cartel in exchange for protecting its drug trafficking activities and facilitating the importation of cocaine and other drugs into the United States. This case affirms DEA’s dedication to target and bring to justice those that enable the Sinaloa criminal drug cartel to flood the U.S. with deadly drugs that are killing Americans at unprecedented rates. It should send a clear message – to all political leaders around the world that trade on positions of influence to further transnational organized crime – that DEA will relentlessly pursue drug trafficking organizations that threaten the safety and health of the American people.”
HSI New York Special Agent in Charge Ivan J. Arvelo: “Criminal organizations cannot function at the level of the Sinaloa drug cartel without the support of corrupt politicians and officials such as Genaro Garcia Luna who aid and abet them. Garcia Luna, a trusted public servant, used his official position to assist this violent drug cartel in exchange for millions of dollars in bribes. Not only did Garcia Luna betray his position, his people and his country, his actions facilitated the importation of tons of illicit drugs into the United States. Corrupt officials like Garcia Luna create a dangerous work environment for U.S. law enforcement who often share sensitive information with the Mexican government to stem the flow of dangerous narcotics into the United States. HSI, along with our law enforcement partners, will aggressively pursue individuals and organizations that negatively impact the national security of the United States and the safety of its citizens.”
As proven at trial, from 2006 to 2012, Garcia Luna was Mexico’s top law enforcement official, serving as Secretary of Public Security and, in that capacity controlled Mexico’s Federal Police Force. Previously, from 2001 to 2005, the defendant was the head of Mexico’s Federal Investigative Agency (“AFI”). The defendant used his official positions to assist the violent Sinaloa drug cartel in exchange for millions of dollars in bribes. Garcia Luna’s conduct included facilitating the safe passage for the Cartel’s drug shipments, providing sensitive law enforcement information about investigations into the Cartel, and helping the Cartel attack rival drug cartels, thereby facilitating the importation of multi‑ton quantities of cocaine and other drugs into the United States.
The evidence included testimony from former high-ranking members of the Sinaloa Cartel with direct knowledge of the defendant’s corrupt activities. For example, in exchange for bribes, the defendant’s Federal Police Force acted as bodyguards and escorts for the Cartel, allowing Cartel members to wear police uniforms and badges, and helped unload shipments of cocaine from planes at Mexico City’s airport, then delivered the cocaine to the Cartel. The defendant was paid in U.S. currency — $100 bills in bundles of $10,000 at times — stuffed variously in a suitcase, briefcases and duffel bags. The bribe amounts increased over the years as the Sinaloa Cartel grew in size and power through the assistance of the defendant. Former members of the Cartel testified that bribe money was handed off to the defendant in a variety of locations, including at a “safe house” located in Mexico City where large amounts of cash were hidden in a false wall, at a car wash in Guadalajara, and at a French restaurant in Mexico City across the street from the U.S. Embassy. Further, in exchange for the millions of dollars that the defendant was receiving in bribes, his federal police leaked sensitive information that enabled the Cartel to evade detection by law enforcement or use the information in attacks on rival traffickers.
Finally, after moving to the United States in 2012, Garcia Luna submitted an application for naturalization in 2018, in which he lied about his past criminal conduct on behalf of the Sinaloa Cartel in an attempt to become a U.S. citizen.
Garcia Luna’s co-defendants in the superseding indictment, Luis Cardenas Palomino and Ramon Pequeno Garcia, former high-ranking Mexican law enforcement officials who worked under Garcia Luna, remain fugitives from U.S. authorities.
The investigation was led by the New York Strike Force, a crime-fighting unit comprising federal, state and local law enforcement agencies supported by the Organized Crime Drug Enforcement Task Force and the New York/New Jersey High Intensity Drug Trafficking Area. The Strike Force is based at the DEA’s New York Division and includes agents and officers of the DEA, New York City Police Department, New York State Police, Homeland Security Investigations, U.S. Internal Revenue Service Criminal Investigation Division, Bureau of Alcohol, Tobacco, Firearms and Explosives, U.S. Customs and Border Protection, U.S. Secret Service, United States Marshals Service, New York National Guard, Clarkstown Police Department, U.S. Coast Guard, Port Washington Police Department and New York State Department of Corrections and Community Supervision.
The government’s case is being handled by the Office’s International Narcotics and Money Laundering Section. Assistant U.S. Attorneys Saritha Komatireddy, Erin Reid, Philip Pilmar, Marietou Diouf, and Adam Amir are in charge of the prosecution, with the assistance of Paralegal Specialists Huda Abouchaer, Melissa Bennett, and Bridget Donovan.
The Defendant:
GENARO GARCIA LUNA
Age: 54
Miami, FloridaE.D.N.Y. Docket No. 19-CR-576 (BMC)
Queens Pharmacist Pleads Guilty to Illegally Distributing Oxycodone and Filing False Tax ReturnsRead the Press Release
Daniel E. Russo pleaded guilty today in federal court in Brooklyn to conspiracy to distribute and possess with intent to distribute oxycodone, distribution and possession of oxycodone, and nine counts of filing false personal and corporate tax returns. The proceeding was held before United States District Judge Dora L. Irizarry. When sentenced, Russo faces up to 20 years’ imprisonment for each of the drug counts and up to three years’ imprisonment for each of the tax counts.
Breon Peace, United States Attorney for the Eastern District of New York, Stuart M. Goldberg, Acting Deputy Assistant Attorney General of the Justice Department’s Tax Division, Frank A. Tarentino III, Special Agent-in-Charge, Drug Enforcement Administration, New York Division (DEA), and Thomas Fattorusso, Special Agent-in-Charge, Internal Revenue Service Criminal Investigation, New York (IRS-CI), announced the guilty plea.
“Russo was a drug dealer in a white coat,” stated United States Attorney Peace. “He abused his pharmacy license and the trust placed in him by the community to illegally distribute enormous amounts of oxycodone, spreading misery in the community and fueling addiction, all to enrich himself. This Office will continue working with federal and local law enforcement partners to investigate and prosecute medical professionals who illegally deal dangerous drugs with the same vigor as those who distribute drugs on the street.”
“At the same time Daniel Russo was illegally peddling oxycodone out of his pharmacy, he was pocketing – and not paying taxes on – income from those sales and others in his business,” stated Acting Deputy Assistant Attorney General Goldberg. “Everyone is required to pay their fair share of taxes, whether they make their money legitimately or through criminal activity.”
“This plea solidifies the fact that Russo blatantly ignored his role as a medical practitioner in order to line his pockets with cash,” stated DEA Special Agent-in-Charge Tarentino. “Through this illicit scheme, Russo enabled opioid addiction and misuse throughout Queens and Long Island communities. The DEA Long Island District Office-Tactical Diversion Squad, HHS-OIG, IRS, and the U.S. Attorney’s Office Eastern District of New York’s partnership exemplifies how investigations like this successfully arrest and prosecute individuals in positions that threaten public safety.”
“Instead of acting within the pharmacist code of ethics to act with integrity, Russo chose to use his position to commit criminal acts. He chose to distribute highly addictive drugs to the community he served, then failed to report and pay taxes on the proceeds of his illicit sales. Today, Russo chose to face the consequences of his actions—a good reminder that just like Al Capone, even criminals need to pay their taxes,” stated IRS-CI Special Agent-in-Charge Fattorusso.
As set forth in the indictment, court filings and in court this morning, Russo owned and operated Russo’s Pharmacy in Far Rockaway, Queens. Between March 2011 and June 2014, Russo conspired with others, including medical professionals and employees, to fill fraudulent prescriptions for oxycodone and dispense thousands of oxycodone pills in return for hundreds of thousands of dollars in cash. Over the course of the conspiracy, Russo’s co-conspirators delivered hundreds of fraudulent oxycodone prescriptions to Russo’s Pharmacy and would then retrieve the filled prescriptions—written out in various patients’ names—so that they could be dispensed elsewhere. Russo accepted payment mostly in cash for the prescriptions. Russo then hid the proceeds from the scheme and filed false corporate income tax returns for his pharmacy for the years 2013 through 2016, omitting the illegal proceeds. Russo also filed false individual income tax returns for the years 2012 through 2016. In total, Russo failed to report over $1 million in earnings, much of it generated from his oxycodone distribution scheme.
More than a dozen physicians for whom Russo filled prescriptions have since been convicted of crimes related to the distribution of oxycodone.
The government’s investigation was led by the DEA’s Long Island Tactical Diversion Squad, comprising agents and officers of the DEA, Nassau County Police Department, Suffolk County Police Department, Port Washington Police Department and Rockville Centre Police Department. The DEA Tactical Diversion Squad also worked in conjunction with officers and agents of the U.S. Department of Health & Human Services’ Office of the Inspector General and New York City Department of Investigation.
This case is the latest in a series of federal prosecutions by the United States Attorney’s Office for the Eastern District of New York as part of the Prescription Drug Initiative. In January 2012, this Office and the DEA, in conjunction with the five District Attorneys in this district, the Nassau and Suffolk County Police Departments, the New York City Police Department, the New York State Police and other key federal, state and local government partners launched the initiative to mount a comprehensive response to what the United States Department of Health and Human Services Center for Disease Control and Preventions called an epidemic increase in the abuse of so-called opioid analgesics. To date, the initiative has brought over 160 federal and local criminal prosecutions including the prosecution of 20 health care professionals; taken civil enforcement actions against a hospital, a pharmacy and pharmacy chain; removed prescription authority from numerous rogue doctors and expanded information-sharing among enforcement agencies to better target and pursue drug traffickers. The initiative also is involved in an extensive community outreach program to address the abuse of pharmaceuticals.
The government’s case is being prosecuted by Assistant United States Attorneys Francisco J. Navarro, Nomi D. Berenson and Andrew D. Wang and Trial Attorney Michael C. Vasiliadis of the Tax Division.
The Defendant:
DANIEL E. RUSSO
Age: 44
Cedarhurst, New YorkE.D.N.Y. Docket No. 20-CR-23 (DLI)
Jamaican Citizen Indicted for Multi-Million Dollar Fraud Scheme Extradited to the United StatesRead the Press Release
Adrian Lawrence, a citizen of Jamaica, will be arraigned this afternoon in federal court in Central Islip on a six-count indictment charging him with conspiracy to commit mail and wire fraud, mail fraud and wire fraud, in connection with a scheme to defraud U.S. citizens. Today’s proceeding will be held before United States Magistrate Judge Anne Y. Shields. Lawrence was detained last month in Panama and extradited to the United States on February 8, 2023, at the request of U.S. authorities.
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), Daniel B. Brubaker, Inspector-in-Charge, United States Postal Inspection Service, New York Field Office (USPIS), and J. Russell George, Treasury Inspector General for Tax Administration (TIGTA), announced the arrest and charges.
“As alleged, Lawrence and his co-conspirators preyed on dozens of elderly persons, contacting the victims by phone and email, spinning the lie that they had won a sweepstakes prize, then having gained their trust, betrayed them by extracting a purported fee to collect the non-existent winnings,” stated United States Attorney Peace. “Today’s arrest demonstrates our Office’s commitment to aggressively investigate and prosecute those individuals who exploit our senior citizens for personal gain.”
Mr. Peace expressed his thanks to the Justice Department’s Office of International Affairs for their valuable assistance with this case.
“As alleged, Lawrence defrauded dozens of elderly victims of collectively more than $5 million by willfully misleading them to believe they had won a sweepstakes and needed to pay fees to release their winnings. After the victims paid the fees, they came to the unfortunate realization that the prizes they had been promised were non-existent. While elder fraud continues to be a persistent crime problem, today’s action should serve as a reminder the FBI will continue to do all we can to protect the vulnerable from those who seek to take advantage of them for their own greedy purposes,” stated FBI Assistant Director-in-Charge Driscoll.
USPIS Inspector-in-Charge Brubaker stated: “Postal Inspectors have been in the business of tracking down fugitives for over 200 years. With the assistance of the U.S. Marshals Service Fugitive Task Force and the U.S Attorney’s Office, Adrian Lawrence will face justice in the Eastern District of New York. Lawrence, a Jamaican national, is allegedly the head of a scamming operation that defrauded more than 50 victims out of more than $5 million dollars over the past 10 years. This arrest should serve as a clear message to Lawrence and anyone else involved in lottery or sweepstakes scams, that if you prey upon the American public there will be consequences. No matter how far you run, or how good you think you can hide, justice will always find you. Postal Inspectors remind everyone that you can’t win a lottery or sweepstakes that you didn’t enter, and that you NEVER have to pay any amount to collect a legitimate prize.”
“The Treasury Inspector General for Tax Administration aggressively investigates individuals who impersonate Internal Revenue Service employees or who use the IRS’s tax collecting authority to scam others, especially seniors and other vulnerable populations,” stated Treasury Inspector General for Tax Administration J. Russell George. “We are committed to working with our law enforcement partners and the United States Attorney’s Office to ensure those who endeavor to corrupt federal tax administration are prosecuted to the fullest extent of the law.”
As set forth in the indictment and court filings, between October 2013 and April 2020, Lawrence, also known as “Mastermind,” and his co-conspirators carried out a scheme via telephone and email to defraud elderly United States citizens (the “Victims”) by falsely telling the Victims that they had won certain sweepstakes contests that were sponsored by Publishers Clearing House, federal agencies such as the Federal Trade Commission, and other entities. Lawrence also told the Victims that in order to facilitate the release of their sweepstakes prizes, the Victims first needed to wire-transfer money to various bank accounts that he had his co-conspirators established at bank branches in the United States, and to mail checks and cash to Lawrence’s co-conspirators throughout the United States, in order to pay for purported fees. In reality, Lawrence knew that the Victims owed no fees and had won no sweepstakes prizes. Lawrence used a variety of aliases, email addresses and phone numbers to perpetrate the scheme. At least 50 victims, whose average age was 81-years-old, sent more than $5.6 million to Lawrence and his co-conspirators.
The charges in the indictment are allegations, and Lawrence is presumed innocent unless and until proven guilty. If convicted, the defendant faces up to 20 years in prison.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorney Christopher Caffarone is in charge of the prosecution.
The Defendant:
ADRIAN LAWRENCE (also known as “Mastermind”)
Age: 31
JamaicaE.D.N.Y. Docket No. 22-CR-159 (JMA)
U.S. Citizen Sentenced to 30 Months in Prison for Conspiring to Provide Electronic Equipment and Technology to the Government of IranRead the Press Release
Earlier today, in federal court in Brooklyn, Kambiz Attar Kashani, a dual citizen of the United States and Iran, was sentenced by United States District Judge Eric R. Komitee to 30 months’ imprisonment for conspiring to illegally export U.S. goods, technology, and services to end users in Iran, including the Government of Iran, in violation of the International Emergency Economic Powers Act (IEEPA). The defendant has agreed to pay a $50,000 fine. Kashani pleaded guilty to the charge in June 2022.
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, and Joseph R. Bonavolanta, Special Agent-in-Charge, Federal Bureau of Investigation, Boston Division (FBI), announced the sentence.
“Kashani defied export restrictions and sanctions against Iran, a country that sponsors international terrorism,” stated United States Attorney Peace. “His scheme undermined U.S. foreign policy and national security interests, and warranted a substantial sentence of incarceration to deter others.”
“Kashani conspired to illegally export U.S. goods and technology for the benefit of the Central Bank of Iran, a designated entity that materially supports known terrorist organizations,” said Assistant Attorney General Olsen. “The Department remains vigilant against any efforts to circumvent our export control laws, which exist to protect the security of the United States and its people.”
“Kambiz Attar Kashani will now head to prison for strengthening the economy of one of the world’s most infamous state sponsors of terrorism to line his own pockets, while circumventing U.S. laws in place to protect our national security interests. He used two United Arab Emirates companies to procure items from multiple American technology companies, including one located right here in Massachusetts,” said Special Agent in Charge of the FBI Boston Division Bonavolonta. “Today’s sentencing should send a strong message that the FBI and its law enforcement partners will continue to pursue and hold accountable those individuals who illegally export our country’s sensitive information and technology to hostile nations such as the Government of Iran.”
Between February 2019 and June 2021, Kashani conspired to illegally export goods and technology to end users in Iran, including the Central Bank of Iran (CBI). The U.S. government recognizes CBI as an agency of the Government of Iran and the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) has classified it as a Specially Designated National (SDN) acting for or on behalf of a terrorist organization. According to the U.S. government, CBI has materially assisted, sponsored and provided financial, material or technological support, goods or services to Lebanese Hizballah, a terrorist organization, and to the Qods Force of Iran’s Islamic Revolutionary Guards Corps (IRGC), which is a branch of the Iranian armed forces and represents the primary means of the Government of Iran to direct and implement its global terrorism campaign.
Kashani and his co-conspirators perpetrated the illegal transshipping scheme through two separate United Arab Emirates (UAE) companies. They used the UAE companies to procure electronic goods and technology from multiple U.S. technology companies, including one located in Brooklyn, for end users in Iran, including CBI, without obtaining required OFAC export licenses. Certain of the goods and technology Kashani and his co-conspirators transshipped were classified by the U.S. Department of Commerce’s Bureau of Industry and Security as information security items subject to national security and anti-terrorism controls. Kashani and his co-conspirators intentionally concealed from the U.S. companies that they intended to send the items to Iran, falsely claiming that the UAE companies would be the ultimate end users.
As set forth in court papers, by providing the Government of Iran and end users in Iran with sophisticated, top-tier U.S. electronic equipment and software, the defendant and his co-conspirators enabled the Iranian banking system to operate more efficiently, effectively, and securely. In doing so, the defendant and his co-conspirators likely helped strengthen Iran’s economy and provided faster and more secure access to funds that enable the Government of Iran to further priorities including its nuclear program and terrorist agenda – exactly what the U.S. sanctions against Iran were intended to prevent.
The government’s case is being handled by the Office’s National Security and Cybercrime Section. Assistant United States Attorneys Alexander A. Solomon and Meredith A. Arfa are in charge of the prosecution, with assistance provided by Trial Attorney S. Derek Shugert of the Justice Department’s Counterintelligence and Export Control Section.
Defendant:
Kambiz Attar Kashani
Age: 45
United Arab EmiratesE.D.N.Y. Docket No. 22-CR-33 (EK)
U.S. Citizen Sentenced for Conspiring to Provide Electronic Equipment and Technology to the Government of IranRead the Press Release
Earlier today in federal court in Brooklyn, New York, Kambiz Attar Kashani, 44, a dual citizen of the United States and Iran, was sentenced to 30 months in prison for conspiring to illegally export U.S. goods and technology to end users in Iran, including the Central Bank of Iran, in violation of the International Economic Powers Act (IEEPA). The Central Bank of Iran is an Iranian government agency that, according to the U.S. government, has materially supported Lebanese Hizballah and the Qods Force of Iran’s Islamic Revolutionary Guards Corps, both designated terrorist organizations.
“Kashani conspired to illegally export U.S. goods and technology for the benefit of the Central Bank of Iran, a designated entity that materially supports known terrorist organizations,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “The Department remains vigilant against any efforts to circumvent our export control and sanctions laws, which exist to protect the security of the United States and its people.”
“Kashani defied export restrictions and sanctions against Iran, a country that sponsors international terrorism,” said U.S. Attorney Breon Peace for the Eastern District of New York. “His scheme undermined U.S. foreign policy and national security interests and warranted a substantial sentence of incarceration to deter others.”
“This is a sobering reminder that illegally exporting material is not an abstract economic concern – it is a crime with a direct impact on the safety of the American people,” said Assistant Director Alan E. Kohler Jr. of the FBI Counterintelligence Division. “Kambiz Attar Kashani pleaded guilty to conspiring to illegally export technologies and goods to Iran, a designated state sponsor of terrorism. The recipient of these technologies was the Central Bank of Iran, an entity connected to organizations such as Iran’s Qods Force and Lebanese Hizbollah, both designated terrorist groups that represent a clear and present threat to the United States. As long as these threats persist, the FBI will not rest in our efforts to find these illegal exporters and bring them to justice.”
According to court documents, between February 2019 and June 2021, Kashani and his co-conspirators used two front companies in the United Arab Emirates (UAE) to illegally procure electronic goods and technology from multiple U.S. technology companies, including one located in Brooklyn, for end users in Iran, including the Central Bank of Iran. Certain goods and technology Kashani and his co-conspirators transshipped were controlled by the U.S. government for national security and anti-terrorism reasons. Kashani and his co-conspirators intentionally concealed from the U.S. companies that they intended to send the items to Iran, falsely claiming that the UAE companies would be the ultimate end users. By providing the Central Bank of Iran and other end users in Iran with sophisticated, top-tier U.S. electronic equipment and software, Kashani and his co-conspirators enabled the Iranian banking system to operate more efficiently, effectively and securely.
The FBI is investigating the case.
Assistant U.S. Attorneys Alexander A. Solomon and Meredith A. Arfa for the Eastern District of New York are prosecuting the case, with assistance provided by Trial Attorney S. Derek Shugert of the National Security Division’s Counterintelligence and Export Control Section.
Two Defendants Sentenced to 202 Years' and 40 Years' Imprisonment, Respectively, for their Participation in the Murder and Extortion of Queens Business OwnerRead the Press Release
Earlier today, in federal court in Brooklyn, Ppassim Elder, also known as “Bsam,” “Big Sam” and “Sam,” and Wilbert Bryant, also known as “Will” and “La,” were sentenced by United States District Judge William F. Kuntz II, to terms of imprisonment of 202 years and 40 years, respectively. The defendants were sentenced for extortion and fraud offenses following their conviction after a three-week trial in September and October 2021. At trial, the evidence showed that Elder and Bryant participated in an extortion scheme during which one victim was pistol-whipped and another victim was fatally shot in the face.
Breon Peace, United States Attorney for the Eastern District of New York, announced the sentence.
“The defendants are guilty of multiple crimes of violence and fraud that victimized many persons, including the patriarch of a Queens family who was gunned down in his place of business,” stated United States Attorney Peace. “The defendants will deservedly serve lengthy prison sentences for their ruthless and vicious conduct.”
Mr. Peace also expressed his thanks to the Federal Bureau of Investigation, New York Field Office, the New York City Police Department, and the Queens County District Attorney’s Office for their assistance during the investigation and prosecution.
As proven at trial, on the morning of October 23, 2017, Bryant and two co-conspirators entered Garden Valley Distributors, a family-owned wholesale distribution center in Ozone Park, Queens. The perpetrators said that “Big Sam” sent them to collect his money. Earlier that year, Elder, who was known as “Big Sam,” had loaned Hani Kasem’s son money, which the son used to support the business. When Elder demanded full repayment, the son was unable to repay the debt because the money had been used to purchase merchandise for the business. Elder then began a campaign of intimidation against the son and his family. On one occasion, Elder paid co-conspirators to throw a rock through a window of the victim’s home. On another occasion, Elder barged into Kasem’s home, intimidating members of his family. Finally, Elder dispatched Bryant and two co-conspirators to the Garden Valley Distributors business where the perpetrators brandished a firearm, pistol-whipped the son and shot Kasem in the face, mortally wounding him.
In addition to the murder, Elder extorted another person whose brother had stolen the proceeds of a fraud scheme perpetrated by Elder. Although the victim was not involved in the theft, Elder punched him in his face in front of his daughters, breaking and bloodying his nose in order to “send a message” to the victim’s brother. Elder and Bryant were also convicted of bank fraud conspiracy for lying to banks about the true owner of certain bank accounts, which permitted Elder to defraud innocent victims across the country, including an elderly man who lost over $30,000 when he was tricked into believing he was purchasing a car and another individual who lost over $150,000 when he was defrauded into believing he was purchasing two real estate properties. Elder was also convicted of crimes committed after his arrest in this case, including stealing his attorney’s identity and lying to federal officials.
This case was brought as part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. As part of the program, U.S. Attorneys’ Offices work in partnership with federal, state, local and tribal law enforcement and their local communities to develop effective, locally based strategies to reduce violent crime.
The government’s case is being handled by the Office’s Organized Crime and Gangs Section. Assistant United States Attorneys Genny Ngai and Anna L. Karamigios are in charge of the prosecution.
The Defendants:
PPASSIM ELDER (also known as “Bsam,” “Sam,” and “Big Sam”)
Age: 43
Staten Island, New YorkWILBERT BRYANT (also known as “Will” and “La”)
Age: 58
Brooklyn, New YorkE.D.N.Y. Docket No. 18-CR-92 (S-5) (WFK)
Long Island Man Convicted of Distributing Heroin that Caused Overdose DeathRead the Press Release
A federal jury in Central Islip today returned a guilty verdict against James Tunstall for distributing heroin, which resulted in the fatal overdose of 24-year-old Sergio Niko Alvarez on October 29, 2018 in Jericho, New York. The verdict followed a five-day trial before United States District Judge Joan M. Azrack.
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.
“Tunstall, an admitted drug dealer, is held responsible by today’s verdict for selling heroin that killed a young man on Long Island, an all-too-frequent occurrence in this district and our country due to the proliferation of illegal drugs and the callous disregard for life displayed by the defendant and others,” stated United States Attorney Peace. “I commend the prosecutors from my Office, the Special Agents of the DEA, and the members of the Long Island Heroin Task Force for their outstanding working on this case. We will continue our comprehensive efforts to fight against this terrible opioid epidemic.”
U.S. Attorney Peace extended special thanks to the Nassau County Police Department for its partnership throughout the investigation and prosecution.
“This conviction is a sobering reminder of the devastation and senseless loss of life inflicted by drug traffickers,” stated DEA Special Agent-in-Charge Tarentino. “DEA and our task forces are committed to bringing to justice those responsible for fueling drug overdose and poisonings and defeating the drug cartel's lethal criminal empires.”
As proven at trial, Tunstall was a drug dealer who regularly sold cocaine and heroin to customers in Nassau County. The defendant met the victim at an outpatient rehabilitation facility in Mineola, and even sold him cocaine in the bathroom of the facility. Tunstall’s co-defendant, Jay Tenem, a drug addict who also met the defendant in a rehabilitation program, delivered the fatal dose of heroin from Tunstall to the victim on October 28, 2018, in exchange for heroin of his own to use. Tenem collected the victim’s payment for the heroin, and brought the cash back to Tunstall. The victim was found dead of heroin intoxication the next morning in his bedroom, by his mother. The evidence included text messages between the defendant and the victim, and between Tenem and the victim. In those messages, the defendant negotiated prices for the drugs with the victim, and told him “I don’t do this for fun.”
Tenem pleaded guilty in February 2019 to distributing the heroin that caused Alvarez’s death and is awaiting sentencing.
Tunstall pleaded guilty in July 2021 to conspiracy to distribute heroin and cocaine, and was sentenced by the Court in December 2022 to 20 years’ imprisonment. When sentenced in this case, for causing Alvarez’s death, Tunstall faces up to life in prison.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorneys Justina Geraci and Samantha Alessi are in charge of the prosecution, with assistance from Paralegal Specialist Michael Compitello.
The Defendant:
JAMES T. TUNSTALL (also known as “Math”)
Age: 48
Freeport and Westbury, New YorkE.D.N.Y. Docket No. 18-CR-675 (JMA)
American Citizen Convicted of Providing Material Support to ISIS that Resulted in DeathRead the Press Release
Today, a federal jury in Brooklyn convicted Ruslan Maratovich Asainov, a U.S. citizen and former resident of Bay Ridge, New York, of all five counts of an indictment charging him with conspiracy to provide material support to ISIS; providing material support to ISIS in the form of personnel, training, expert advice and assistance; receipt of military-type training from ISIS; and obstruction of justice. The jury also found that the defendant’s provision of material support to ISIS resulted in the death of one or more persons. The verdict followed a two-week trial before United States District Judge Nicholas G. Garaufis. When sentenced, Asainov faces up to life in prison.
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; 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 verdict.
“As proven at trial, Asainov was a member of ISIS, a violent foreign terrorist organization, which has committed numerous acts resulting in the deaths of many U.S. citizens and others,” stated United States Attorney Peace. “The defendant committed to the terrorist organization’s evil cause and made an extraordinary journey to the battlefield in Syria, where he became a lethal sniper for ISIS and trained many other ISIS members to kill. Even after being captured, he still pledged his allegiance to ISIS. Today’s verdict in an American courtroom is a victory for our system of justice, and against ISIS and those like the defendant who are committed to murdering innocent people here in the United States and abroad.”
“With today’s guilty verdict, Asainov now faces the possibility of spending the rest of his life in prison for providing material support to ISIS which resulted in death. Combatting terrorism worldwide remains the FBI’s top priority, and the dedicated personnel assigned to our New York Joint Terrorism Task force will continue to work tirelessly to bring to justice all those who seek to commit acts of terror against the United States and our citizens,” stated FBI Assistant Director-in-Charge Driscoll.
“Asainov is a naturalized U.S. citizen who forsook the country that took him in – as well as his family in New York City – to instead pledge allegiance to ISIS and actively promote that terrorist group’s violent objectives,” stated NYPD Commissioner Keechant L. Sewell. “Today’s verdict serves as a warning to anyone who intends to support or conduct attacks on behalf of such a despicable organization: You will be brought to justice. The threat of ISIS-inspired murder and chaos remains very real, however, and the members of our FBI-NYPD Joint Terrorism Task Force – in close partnership with our law enforcement colleagues across the globe – will never cease working to identify those who so clearly consider our country their sworn enemy.”
As proven at trial, between December 2013 and March 2019, Asainov provided and conspired to provide material support and resources in the form of personnel, including himself, training, and expert advice and assistance, to a foreign terrorist organization, namely ISIS, knowing that ISIS was a designated foreign terrorist organization that had engaged in terrorist activity and terrorism. Asainov also received military-type training from ISIS, in violation of federal law.
Asainov converted to Islam in 2009 and subsequently became increasingly interested in Islamic extremism. By the fall of 2013, he was consuming radical Islamic content online. He abruptly dropped out of classes at the Borough of Manhattan Community College in September 2013, and began preparing to travel to Syria to wage violent jihad.
On December 24, 2013, Asainov abandoned his wife and daughter in Brooklyn, and traveled on a one-way ticket from New York to Istanbul, Turkey, to obtain entry into Syria.
Over the course of approximately five years fighting on behalf of ISIS, Asainov fought in numerous battles against ISIS enemies, including engagements at Kobani; Tabqa; Raqqa; Dayr Az Zawr; and ISIS’s last stand in Syria at Baghouz, in March 2019. Asainov received training in how to use automatic rifles, machine guns and rocket-propelled grenades. In Tabqa, in mid-2014, he volunteered to train as a sniper. Over time, Asainov became a sniper trainer or “emir” on behalf of ISIS, estimating that he taught nearly 100 students. A former U.S. Navy SEAL scout sniper testified that the defendant’s sniper training course was consistent with what the former SEAL would expect to be taught in a sniper training program.
From Syria, the defendant attempted to recruit another individual to travel from the United States to Syria to fight for ISIS, and sought to obtain funds to purchase a scope for his rifle from the same person. The defendant also told his estranged wife that he was fighting on behalf of ISIS, described by him in a recorded January 2015 voicemail as “the most atrocious terrorist organization in the world that ever existed.” Asainov’s wife testified that he sent her a photograph of three dead fighters, one of whom was wearing a patch that stated, “Islamic State of Iraq and al-Sham,” i.e., ISIS, in Arabic script.
Asainov was captured in Syria after ISIS’s last stand at Baghouz, near the Syria-Iraq border. Just before his capture, Asainov discarded his rifle and destroyed his cell phone.
Asainov admitted to agents from the FBI’s Joint Terrorism Task Force that he had fought in numerous battles on behalf of ISIS as a warrior and sniper, serving in several different katibas or ISIS fighting brigades. In recorded phone calls to his mother from facilities operated by the Bureau of Prisons, the defendant told her that he was carrying out Allah’s orders when he waged jihad and killed for ISIS, that he intended to return to waging jihad if released, and that he would fight until he “meet[s] Allah,” i.e., until his death. In September 2020, staff at a BOP facility confiscated a makeshift ISIS flag affixed to Asainov’s cell wall. The defendant had filled in an 8.5” x 11” sheet of paper with black ink and Arabic writing in the design of the ISIS flag.
The government’s case is being handled by the Office’s National Security and Cybercrime Section. Assistant United States Attorneys Douglas M. Pravda, J. Matthew Haggans, Nicholas J. Moscow, and Nina C. Gupta are in charge of the prosecution, with assistance provided by Assistant United States Attorney Saritha Komatireddy, Trial Attorney Jenny Levy of the Counterterrorism Section of the National Security Division of the Department of Justice and Paralegal Specialists Wayne Colon and Mary Clare McMahon.
The Justice Department’s Office of International Affairs, the FBI’s Legal Attachés abroad, and foreign authorities in multiple countries on multiple continents provided critical assistance in this case. The Bosnian and Herzegovinian authorities, and the FBI Legal Attaché Office in Sarajevo provided extraordinary assistance in the investigation and prosecution. The Ministry of Justice for the Republic of Finland, the Stuttgart Police Department and Federal Office of Justice in the Federal Republic of Germany, the Department of Justice & Constitutional Development in the Republic of South Africa, and the Prosecutor General’s Office in Ukraine, and the FBI’s Legal Attaché Offices in or responsible for those countries provided valuable assistance in the investigation.
The Defendant:
RUSLAN MARATOVICH ASAINOV (also known as “Suleiman Al-Amriki” and “Suleiman Al-Kazakhi)
Age: 46
Syria and Bay Ridge, BrooklynE.D.N.Y. Docket No. 19-CR-402 (NGG)
Individual Who Portrayed Himself as Experienced Stock Trader Sentenced to 30 Months' Imprisonment for Defrauding InvestorRead the Press Release
Gonzalo Ortiz was sentenced yesterday in federal court in Brooklyn by United States District Judge William F. Kuntz II, to 30 months in prison for defrauding an investor of nearly $600,000 by making false representations about Ortiz’s trading expertise and the profitability of various investments. The Court also ordered Ortiz to pay $224,500 in restitution to the victim and imposed two years of supervised release to follow his custodial sentence. In November 2021, Ortiz pleaded guilty to one count of investment advisor fraud.
Breon Peace, United States Attorney for the Eastern District of New York, announced the sentence.
Mr. Peace expressed his appreciation to the Federal Bureau of Investigation, New York Field Office, and the United States Securities and Exchange Commission, New York Regional Office, for their significant cooperation and assistance in this case.
Between approximately April 2015 and May 2017, Ortiz falsely represented himself to an investor (the “Victim”) as a successful investment adviser who had made profits for other individuals by trading stocks on their behalf. Ortiz convinced the Victim to allow him to invest the Victim’s money, promising significant returns. Based on those misrepresentations, the Victim made successive investments with Ortiz over a period of years. During this time, Ortiz falsely told the Victim that the investments were profitable and sent the Victim a false account statement to support these claims. In reality, Ortiz made poor trading decisions that resulted in the loss of a portion of the Victim’s money, and also stole some of the Victim’s money for himself, siphoning off portions of the investments to pay for personal expenses, including clothing, food and car payments. Ortiz controlled nearly $600,000 of the Victim’s money, stole approximately $224,500 for himself, and lost a significant amount of the Victim’s money to unprofitable trades.
The case is being handled by the Office’s Business and Securities Fraud Section. Assistant United States Attorneys Alixandra Smith and Andrew D. Grubin are in charge of the prosecution.
The Defendant:
Gonzalo Ortiz
Age: 49
Hackensack, New JerseyE.D.N.Y. Docket No. 19-CR-161 (WFK)
Queens Man Charged with Child Exploitation, Enticement of Minors and Firearm Possession as a FelonRead the Press Release
Angel Almeida will be arraigned this afternoon at the federal courthouse in Brooklyn on a superseding indictment charging him with the sexual exploitation and attempted exploitation of a minor, coercion and enticement and attempted coercion and enticement of a minor, possession of child pornography, and possessing a firearm and ammunition as a felon. Almeida was arrested in November 2021 on a complaint charging him with being a convicted felon in possession of a firearm. He was indicted in December 2021 and has been detained pending trial. Today’s arraignment will be held before United States District Judge Rachel P. Kovner.
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 superseding indictment.
“The defendant’s alleged exploitation of minors has been extremely harmful mentally, emotionally and physically to his victims,” stated United States Attorney Peace. “His possession of a firearm despite a prior felony conviction, combined with his crimes against minors, reflect Almeida’s dangerousness and lack of respect for the law. Protecting the community from predators like the defendant will always be a priority of this Office. Additionally, I urge parents and caregivers to have conversations with their children about the dangers of communicating online with strangers and individuals who seek to exploit them.”
“As alleged, Almeida posed multiple threats to our community, not only as a felon in possession of a firearm, but also through targeting children as victims of sexual abuse. Today’s indictment serves as a reminder the FBI and our law enforcement partners will continue to aggressively pursue and hold accountable anyone willing to exploit some of the most vulnerable members of our society. We ask anyone who may have been victimized by Almeida to contact us at 1-800-CALL-FBI or online at tips.fbi.gov,” stated FBI Assistant Director-in-Charge Driscoll.
As set forth in court filings, in September 2021 and October 2021, the FBI received tips regarding an individual named Angel Almeida possessing firearms and posting sexually explicit images of children online. The tipster identified social media profiles used by Almeida, including a Facebook account with the profile name “Sargent Grey” (the “Sargent Account”). A review of the Sargent Account, as well as Instagram accounts used by Almeida, revealed photos of Almeida holding what appeared to be firearms. On November 23, 2021, members of law enforcement executed a search warrant at Almeida’s residence and recovered a 9 mm Taurus handgun that appeared to be the same firearm that the defendant had posed with. Almeida has a 2019 felony conviction in Florida for burglary. As a result, in December 2021, Almeida was charged in an indictment with being a felon in possession of a firearm.
In addition, between July 2021 and December 2021, Almeida enticed a minor, Jane Doe-1, to engage in sexually explicit conduct for the purpose of producing videos. Between February 2020 and November 2021, Almeida also enticed another minor, Jane Doe-2, to engage in sexual contact, a violation of the Mann Act. In addition to the enticement and coercion charges, Almeida is also charged with possession of child pornography recovered from multiple cell phones.
The government’s investigation is ongoing. Anyone with information about sexual exploitation by Almeida is asked to contact the FBI at 1-800-CALL-FBI or online at tips.fbi.gov
The charges in the superseding indictment are allegations, and the defendant is presumed innocent unless and until proven guilty.
If convicted of the charges, Almeida faces a mandatory minimum of 15 years’ imprisonment and up to life in prison.
The government’s case is being prosecuted by Assistant United States Attorney Chand Edwards-Balfour.
The Defendant:
ANGEL ALMEIDA
Age: 22
Queens, New YorkE.D.N.Y. Docket No. 21-CR-613 (RPK)
Leader of Brooklyn Based Elite Assassin Millas Gang Convicted of Racketeering Conspiracy and Firearms OffenseRead the Press Release
Earlier today, a federal jury in Brooklyn convicted Quandel Smothers on both counts of an indictment charging him with racketeering conspiracy and possessing a firearm in furtherance of a drug trafficking crime in connection with his leadership of the East New York-based Elite Assassin Millas (E.A.M.), a set of the Bloods street gang. Six other members and associates of E.A.M. previously pleaded guilty after being charged in June 2020. When sentenced, the defendant faces a maximum of life in prison and a mandatory minimum sentence of five years.
Breon Peace, United States Attorney for the Eastern District of New York, announced the verdict.
“Today’s verdict is welcome news to the people of East New York, who will no longer have to face the defendant’s destructive impact on their neighborhood,” stated United States Attorney Peace. “Our communities should not have to live in fear of unprompted violence from the defendant and his gang.”
Mr. Peace thanked the Federal Bureau of Investigation, New York Field Office and the New York City Police Department for their assistance in the case.
As proven at trial, E.A.M. operated primarily in East New York, which the gang referred to as “Gun Town.” The gang profited through fraud and narcotics dealing, particularly the sale of crack cocaine and marijuana.
Between 2006 and 2019, Smothers agreed with other gang members and associates to engage in fraud, narcotics trafficking, and significant acts of violence, including shootings that killed at least one individual and left several other victims permanently disabled.
On April 30, 2011, the defendant shot a fellow E.A.M. member whom he believed intended to harm another member of the gang over a drug-related dispute. As a result of the shooting, the victim’s leg was amputated. Over the years that the defendant led the gang, the gang engaged in numerous feuds with other local street gangs in East New York that frequently resulted in shoot-outs between the groups. As a result of shootings, several individuals were paralyzed by members of E.A.M., and one person — Michael Tenorio — was murdered.
The other defendants charged in the indictment previously pleaded guilty to crimes including murder, conspiracy to commit murder, assault, and interstate stalking causing life threatening injury.
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 Matthew Galeotti, Genny Ngai and Jonathan Siegel are in charge of the prosecution with the assistance of paralegal Brittany Wissel.
The Defendant:
QUANDEL SMOTHERS (also known as “Chucky”)
Age: 32
Brooklyn, New YorkDefendants Who Previously Pleaded Guilty
TYSHAWN CORBETT (also known as “Reck”)
Age: 32
Brooklyn, New YorkQAWON ALLEN (also known as “40” and “Phorty Wap”)
Age: 28
Brooklyn, New YorkDESMONN BECKETT (also known as “Des”)
Age: 30
Brooklyn, New YorkDEVON BRISTOL (also known as “D”)
Age: 32
Brooklyn, New YorkMARLON BRISTOL (also known as “Marlo”)
Age: 35
Brooklyn, New YorkANDREW CAMPBELL (also known as “Phaze”)
Age: 27
Brooklyn, New YorkE.D.N.Y. Docket No. 20-CR-213 (KAM)
U.S. Promoter of Foreign Cryptocurrency Companies Sentenced to 60 Months in Prison for His Role in Multi-Million Dollar Securities Fraud SchemeRead the Press Release
BROOKLYN, NY – Earlier today, in federal court in Brooklyn, John DeMarr was sentenced by United States District Judge LaShann DeArcy Hall to 60 months in prison for his participation in a cryptocurrency and securities fraud scheme. The Court also ordered DeMarr to pay $3,513,305.41 in forfeiture. In July 2021, DeMarr pleaded guilty to one count of conspiracy to commit securities fraud.
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, Donald Alway, Assistant Director-in-Charge, Federal Bureau of Investigation, Los Angeles Field Office (FBI), and Tyler Hatcher, Special Agent-in-Charge, Internal Revenue Service Criminal Investigation, Los Angeles (IRS-CI), announced the sentence.
“DeMarr took advantage of those who trusted him, persuading them to double down on their investments when he knew that his cryptocurrency companies and their dubious celebrity endorsements were scams being used to fund his lavish lifestyle,” stated United States Attorney Peace. “The victims ultimately lost everything, so it is appropriate that DeMarr lose his freedom for concocting this fraud.”
“Cryptocurrency schemes are on the rise. The Internal Revenue Service Criminal Investigation and our law enforcement partners are working diligently to identify and investigate criminals who perpetrate these schemes, like John DeMarr,” stated IRS-CI Special Agent-in-Charge Hatcher. “DeMarr, a promoter of several digital asset-related companies, conspired with others to defraud victims and made misleading representations for significant profits. DeMarr diverted funds into accounts he controlled and spent the money to maintain a lavish lifestyle. Those who line their pockets with profits from these schemes should know they will not go undetected and will be held accountable.”
According to court filings, DeMarr, a promoter of several digital asset-related companies, conspired with others to defraud investor victims by inducing them to invest in their companies, “Start Options” and “B2G,” based on materially false and misleading representations. Start Options purported to be an online investment platform that provided cryptocurrency mining, trading, and digital asset trading services. B2G was purportedly an “ecosystem” that would allow users to trade B2G tokens, provide digital wallet staking, and trade digital and fiat currencies “on a secure, comprehensive platform.” Both Start Options and B2G, however, were fraudulent.
DeMarr and others falsely claimed that investor funds would be invested in digital asset mining and trading platforms that would earn them massive profits. In reality, the funds were never invested and instead diverted to accounts controlled by DeMarr and others and used for various personal expenditures, including the purchase of a Porsche, jewelry, and the remodeling of DeMarr’s home in California.
Start Options also purported to feature celebrity endorsements to promote its securities offerings. For example, a professional athlete purportedly endorsed Start Options and his name and likeness were used without his consent. Based on this and other fraudulent promotional materials, investors sent millions of dollars’ worth of Bitcoin, Ethereum, and fiat currency to financial accounts, including cryptowallets, controlled by DeMarr and others in the United States and abroad. In late January 2018, rather than permitting Start Options investors to withdraw money from their accounts after the requisite time period, DeMarr and others required investors to roll over their accounts into an unregistered “initial coin offering,” or ICO, of B2G. Investors never actually received any digital tokens, and funds from the offering were not used to develop the B2G platform.
Additionally, DeMarr and others also paid various promoters, including an actor famous for martial arts films made in the 1980s and 1990s, to serve as a promoter and celebrity spokesperson, falsely claiming that B2G could generate an “8,000%” return for investors within one year, and that he was a participant in the ICO. DeMarr and others also created false press releases and whitepapers about B2G, fabricated B2G account statements, and refused to allow investors to withdraw their money.
This case was investigated by the FBI and IRS-CI. Assistant U.S. Attorneys Kaitlin T. Farrell, Hiral D. Mehta, David C. Pitluck, Antoinette N. Rangel and Special Agent Martin Sullivan of the Eastern District of New York and Trial Attorney Kevin Lowell of the Criminal Division’s Fraud Section are prosecuting the case. Assistant United States Attorney Claire Kedeshian of the Office’s Asset Recovery Section is handling forfeiture matters.
The Defendant:
JOHN DEMARR
Age: 58
Santa Ana, CaliforniaE.D.N.Y. Docket No. 21-CR-153 (LDH)