Eastern District of New York
Press releases recorded for this federal judicial district.
United States Obtains Temporary Restraining Order Against Firearm Companies Illegally Selling Machine GunsRead the Press Release
On January 19, 2023, the United States filed a civil complaint in federal court in Brooklyn against two firearm companies, and two individuals associated with these companies (collectively, “Defendants”), alleging that Defendants have conspired to defraud the United States and consumers, and have engaged in the ongoing commission of mail fraud and wire fraud, by unlawfully selling machine gun conversion devices. The devices, called FRT-15s, are specifically designed and intended to be used to convert AR-15 type rifles into machineguns and are therefore themselves “machineguns” under federal law. With limited exceptions not applicable to Defendants’ conduct, the manufacture, sale and possession of machine guns is illegal under the National Firearms Act and the Gun Control Act of 1968. The Government’s complaint seeks injunctive relief under the Anti-Fraud Injunction Act. The United States also sought a temporary order immediately halting any sales of the FRT-15 or any forced reset trigger until and unless otherwise ordered by the Court. On January 25, 2023, United States District Judge Nina R. Morrison entered a temporary restraining order against Defendants.
Merrick B. Garland, United States Attorney General; Breon Peace, United States Attorney for the Eastern District of New York; Steven Dettelbach, Director, U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF); and John B. DeVito, Special Agent-in-Charge, ATF, New York Field Division, announced the filing of the complaint.
“The Justice Department has filed a complaint against two firearm companies and two individuals who we allege are illegally selling machineguns, conspiring to violate federal firearm laws, and committing mail and wire fraud” said Attorney General Merrick B. Garland. “Today, we obtained a temporary restraining order that immediately stops the defendants from illegally selling their machineguns. The Justice Department will continue to do everything in its power to protect the American people from gun violence and to hold accountable those that flood our communities with illegal guns.”
“The defendants are illegally selling machine guns, plain and simple, with conversion devices that transform AR-15 type rifles into even more lethal weapons suited for battlefields, not our communities,” said United States Attorney Peace. “We will continue to work with our law enforcement partners to stop the flow of illegal and deadly weapons onto our streets. The United States will be relentless in employing every means available, including all civil tools, to end violence in New York and across the nation.”
ATF Director Dettelbach stated: “Decades ago, Congress determined that machine guns are illegal, yet, despite repeated warnings, the defendants in this case are alleged to be flouting the law. Machine guns are unlawful because they pose a threat to the public and they are increasingly a risk to law enforcement. Ensuring that individuals and companies comply with the prohibition on selling machine guns is just one of many steps ATF is taking to address violent crime and protect our communities.”
“These machine gun conversion devices—which are machine guns under federal law—can turn any semi-automatic AR-type firearm into a weapon capable of shooting at a rate of fire similar to or exceeding that of an M16 machine gun manufactured for military use. Since 1934, machineguns have been subject to strict federal controls, and since 1986, machineguns have been subject to an outright prohibition. These defendants are believed to have earned millions at the expense of the public’s safety and are alleged to have conspired to undermine these very federal laws which are intended to keep the public safe. I would like to thank the United States Attorney’s Office and ATF personnel for their hard work and commitment in securing the temporary restraining order,” stated ATF Special Agent-in-Charge DeVito.
Defendants are Rare Breed Triggers, LLC and Rare Breed Firearms, LLC (collectively, “RBT”) and their owner/operators Lawrence DeMonico, also known as “Larry R. Lee, Jr.” and Kevin Maxwell. As alleged in the complaint, Defendants have unlawfully sold thousands of FRT-15s to the general public. In the process, Defendants have sought to obstruct ATF’s mandate to enforce laws prohibiting the sale of machine guns and ensure public safety. Defendants have also allegedly misled consumers about the legality of FRT-15s.
As set forth in the January 25, 2023 temporary restraining order (“TRO”), among other things, the Court found that “[t]here is probable cause to believe that Defendants’ fraudulent conduct is ongoing and imminent,” that “Defendants failed to register FRT-15s for the purpose of concealing from ATF the sale and transfer of these items,” and that the TRO is necessary to prevent “a continuing and substantial injury to the United States, as well as to past and future purchasers of FRT-15s who have been or may be misled into believing that their possession of FRT-15s is lawful when it is not.”
This action is part of the U.S. Attorney’s Office for the Eastern District of New York’s Civil Initiative to Reduce Gun Violence. The EDNY’s Civil Initiative to Reduce Gun Violence was created in 2022. The EDNY’s Civil Initiative to Reduce Gun Violence aims to work with federal, state, and local officials, as well as community stakeholders, to address the root causes of gun-related crime, and supports reform efforts made across the government. The EDNY’s Civil Initiative to Reduce Gun Violence complements the EDNY Criminal Division’s prosecution of gun-related crimes. The Office also works collaboratively on the Initiative with the Consumer Protection Branch of the Department of Justice.
The government’s case is being handled by Assistant U.S. Attorneys Michael Blume, Joseph Marutollo and Paulina Stamatelos of the Office’s Civil Division with assistance from ATF’s Deputy Associate Chief Counsel Matthew Myerson.
E.D.N.Y. Civil Docket No.: 23-CV-369 (NM) (RML)
U.S. Attorney Breon Peace Speaks at a Naturalization Ceremony in BrooklynRead the Press Release
Remarks as Delivered:
“Good morning. My name is Breon Peace and I am the United States Attorney here in the Eastern District of New York, which covers Brooklyn, Queens, Staten Island and all of Long Island and is home to more than 8 million people. Welcome!
It is my honor to speak to you all today, a day that you will surely treasure for the rest of your lives. Let me be among the first to congratulate you on this wonderful milestone! I am proud to be united with you today in a bond of citizenship that transcends all racial, religious, ethnic, cultural, gender-based, political, language and economic boundaries and proud that we have found a common purpose in being called American citizens.
As the United States Attorney, I have the privilege of leading an office that is responsible for prosecuting all federal criminal cases and for handling federal civil cases in this vast district in which you live. So my job is to keep the community safe and enforce the law on behalf of the United States to improve the lives of the people of the district, particularly our most vulnerable residents.
One of the best parts of my job is being able to work on behalf of and interact with the citizens of this great district—a district that was created in 1865 by President Abraham Lincoln. This district has a long and storied history, but to me, it is perhaps best characterized by its rich and vibrant diversity. This diversity is exemplified by the people in this room. People born on continents around the globe. People of different races and religions, ethnicities and educations. People from widely disparate walks of life.
With all of these differences, how does America come together? To me, the answer is clear. We, as Americans, are united by the philosophy that all people are created equal, and with a goal to make this country better, a more perfect union.
You should have received a packet that contains the Declaration of Independence and the United States Constitution. These documents speak to the origin of American citizenship and the country’s founding principles in establishing its democratic form of government.
The Declaration of Independence states that all men are created equal. But at the time it was drafted in 1776, neither the Declaration of Independence nor the later drafted United States Constitution recognized all people as equal. These documents, despite their central role in structuring a government of, by and for the people, did not contemplate that I, a black man and descendant of slaves, would one day be responsible for: protecting the 8.5 million residents of this district from crime; promoting civil rights, justice and equality for all; and safeguarding the very ideals of democracy and the rule of law enshrined in these documents.
Yet, we are together today as U.S. citizens. How did we move from the exclusion of the past to the welcoming inclusion reflected in the present moment?
History teaches that it took generations, as well as strength, determination and sustained, unyielding courage to ensure that the nation’s promise of equality was extended to all of its people.
A week and a half ago as we do every January, we honored Dr. Martin Luther King, Jr. We commemorate the day of Dr. King’s birth and his legacy with a day of service in our communities, in recognition of his unshakeable faith and unrelenting quest for human dignity and civil rights.
On August 28, 1963, Dr. King stood before the largest crowd ever gathered in support of civil rights at the Lincoln Memorial and boldly talked about his dream in the iconic “I Have A Dream” speech. Sixty years ago, he dreamed of today, where we sit shoulder-to-shoulder basking in the joy and excitement of being citizens from all walks of life, blending cultures, religions, races and gender in celebration of the promise, hope, and yes, future of democracy. In an Independence Day sermon he delivered on July 4, 1965, Dr. King spoke poignantly of this dream, saying “... America is essentially a dream. It is a dream of a land where men of all races, of all nationalities, and of all creeds, can live together as brothers. The substance of the dream is expressed in these sublime words, ‘we hold these truths to be self-evident that all men are created equal, that they are endowed by their creator with certain inalienable rights, that among these are life, liberty and the pursuit of happiness.’” With your sworn oath this morning, these timeless words now belong to you.
In the fight for civil rights, Dr. King identified the precursor to the American dream as the Emancipation Proclamation, which he referred to as the “offspring” of the Declaration of Independence. Although I do not intend to give a history lesson here, President Abraham Lincoln issued the Emancipation Proclamation in 1863 to end the Civil War and unify the nation. Dr. King wrote eloquently that the Emancipation Proclamation, “resurrected and restated the principle of equality upon which the founding of the nation rested.”
It could not be more fitting for us to join in pledging our allegiance to this great country in a proud district created by President Lincoln and rooted in his proclamation of freedom.
I will close with this: Dr. King, former Presidents John F. Kennedy and Barack Obama, often spoke of audacity and hope; the audacity to believe that each of us can make this country greater and stronger, and hope for a better and brighter tomorrow for all Americans.
I share the audacity and hope, and trust that you do too. In my life and career as a lawyer, and as United States Attorney today, I’ve had the audacity to believe that I could bend the “arc of the moral universe” towards justice, fairness and freedom, especially for the vulnerable and the marginalized. And that I can, “keep making our streets safer and our criminal justice system fairer – our homeland more secure, our world more peaceful and sustainable for the next generation,” as President Obama once implored.
I urge you to make today your day of audacity, your day to use the voice you’ve been given to further our democracy and give meaning to its founding principles. Each of you, have journeyed to this country, you have joined this country, you have judged its ideals your ideals. You have elected to become citizens in a land of opportunity and dreams as proud heirs of the Declaration of Independence. Hold fast to the belief that all men and women are created equal and pay it forward by bending the moral arc of this district and country towards justice, fairness, equity and inclusion. Never forget what brought you here and made you Americans.
I congratulate you once again on your becoming American citizens and welcome each and every one of you to share in our vibrant democracy.”
Long Island Contractor Indicted for Multi-Million Dollar Fraud in Connection with Hurricane SandyRead the Press Release
Alexander Almaraz, the owner of Design Concepts Group LLC (DCG) in Freeport, New York, has been charged in a 20-count indictment with wire fraud conspiracy, wire fraud, and attempted wire fraud in connection with a scheme to induce individuals to hire the defendant and pay DCG to lift their Hurricane Sandy-damaged homes. Almaraz is scheduled to be arraigned tomorrow afternoon in federal court in Central Islip before United States Magistrate Judge Lee G. Dunst.
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 Anne T. Donnelly, Nassau County District Attorney, announced the arrest and charges.
“In the aftermath of Hurricane Sandy, the defendant took advantage of distressed homeowners who were desperate to rebuild their homes and their lives,” stated United States Attorney Peace. “The criminal charges announced today demonstrate that despite the passage of time, this Office and our law enforcement partners will prosecute fraudsters who prey on disaster victims and use government relief programs as a piggy bank to enrich themselves.”
Mr. Peace also thanked New York Rising (NYR) within the Governor’s Office of Storm Recovery for their assistance with the investigation.
“As our fellow community members attempted to restore their lives following the cataclysmic destruction of Hurricane Sandy, the defendant exploited the opportunity to operate a years’ long scheme. As alleged, rather than complete the promised contract, Almaraz stole his victims' money to pay for his lavish personal expenses. The FBI will continue to investigate fraud and abuse of government relief programs and hold the scammers accountable for their schemes,” stated FBI Assistant Director-in-Charge Driscoll.
District Attorney Donnelly said: “Dozens of New Yorkers – in their hour of need – were left homeless, and with their homes in ruin, due to the alleged actions of Alexander Almaraz. For nearly four years, this contractor allegedly promised families that he’d repair their homes, but instead he used disaster relief money to buy exotic sports cars and property in another state. I thank our partners at the US. Attorney’s Office and the FBI for their diligent pursuit of this defendant, who has left a trail of destruction in his wake.”
On October 29, 2012, Hurricane Sandy struck New York and New Jersey, causing catastrophic damage to low-lying and coastal areas, including many neighborhoods in the Eastern District of New York. Individuals whose homes were damaged were eligible to receive funding from the Governor’s Office of Storm Recovery through the NYR program.
As alleged in the indictment, Almaraz entered into contracts—alternatively as the owner of DCG and fraudulently posing as the owner of a different company—with homeowners who qualified to receive funds from NYR. As part of these contracts, Almaraz agreed to lift the victims’ homes and set them down on a temporary support structure, which allowed demolition of the foundation, and then install a new foundation, lower the home, and reconnect appliances. Between October 2015 and June 2019, Almaraz agreed to lift the homes of at least 20 customers that had received NYR funding and who collectively paid him approximately $2.5 million. Almaraz convinced many of these homeowners to move out of their homes and pay him rent to live elsewhere, all the while neglecting their projects and causing greater loss. Additionally, instead of performing the agreed-upon work, Almaraz used the homeowners’ monies to pay for personal expenses, including credit card bills, land purchased in Kansas City, Missouri, and luxury automobiles, including a Lamborghini, a Porsche and a Jaguar. If convicted, the defendant faces a maximum term of 30 years’ incarceration on each count in the indictment.
The charges in the indictment are allegations, and Almaraz is presumed innocent unless and until proven guilty.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorneys Christopher Caffarone and Megan E. Farrell are in charge of the prosecution.
The Defendant:
ALEXANDER ALMARAZ
Age: 55
Irvine, California – formerly of Freeport, New YorkE.D.N.Y. Docket No. 23-CR-17 (JMA)
Former Leader of the Violent "Clan del Golfo" Drug Trafficking Organization Pleads Guilty to Engaging in a Continuing Criminal Enterprise and Other Related ChargesRead the Press Release
Dairo Antonio Úsuga David, known by various aliases, including “Otoniel,” pleaded guilty today to running a continuing criminal enterprise—the Colombian paramilitary and multibillion dollar drug organization known as the “Clan del Golfo” (CDG). Úsuga David also pleaded guilty to related drug distribution charges. When sentenced, Úsuga David will face a mandatory minimum term of 20 years in prison and up to life in prison. As part of the plea agreement, Úsuga David also agreed to pay a $216 million forfeiture money judgment. The proceeding was held before United States District Judge Dora L. Irizarry.
Úsuga David was charged by way of indictments filed in the Eastern District of New York, United States v. Dairo Antonio Usuga David, et al., 14-CR-625 (S-4) (E.D.N.Y.) (the “EDNY Indictment”), in the Southern District of Florida, United States v. Dairo Antonio Usuga David, 15-CR-20403 (S-1) (the “SDFL Indictment”), and in the Southern District of New York, United States v. Dairo Antonio Usuga David, 04-CR-962 (S-3) (the “SDNY Indictment”) (collectively the “Indictments”).
The EDNY Indictment charged Úsuga David with, among other things, engaging in a continuing criminal enterprise from June 2003 through October 2021. The SDFL Indictment charged Úsuga David with, among other things, maritime narcotics distribution conspiracy from 2002 through October 23, 2021. The SDNY Indictment charged Úsuga David with, among other things, narcotics importation conspiracy from 2001 through April 2009. Úsuga David was extradited from Colombia to the Eastern District of New York in May 2022.
Pursuant to a plea agreement, Úsuga David agreed to the transfer of the SDFL Indictment and the SDNY Indictment for plea and sentencing in the Eastern District of New York. Thus, Úsuga David will be held accountable in the Eastern District of New York for the criminal conduct encompassing the three Indictments.
Merrick B. Garland, United States Attorney General; Breon Peace, United States Attorney for the Eastern District of New York; Markenzy Lapointe, United States Attorney for the Southern District of Florida; Damian Williams, United States Attorney for the Southern District of New York; Anne Milgram, Administrator, U.S. Drug Enforcement Administration (DEA); Ivan Arvelo, Special Agent-in-Charge, Homeland Security Investigations, New York (HSI); Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI); Keechant L. Sewell, Commissioner, New York City Police Department (NYPD); and Steven A. Nigrelli, Acting Superintendent, New York State Police (NYSP), announced the guilty pleas.
“With today’s guilty plea, the bloody reign of the most violent and significant Colombian narcotics trafficker since Pablo Escobar is over. Úsuga David has now been held accountable for his leadership of the Clan del Golfo, which was responsible for trafficking tons of illegal narcotics from Colombia to the United States and incalculable acts of violence against law enforcement, military personnel, and civilians in Colombia and elsewhere,” stated United States Attorney Peace. “Today’s guilty plea is the result of the determined work of numerous law enforcement personnel in the United States, Colombia, and elsewhere. It is our hope that bringing Úsuga David to justice can provide a measure of solace to the victims of his narcotics trafficking and violence in Colombia and the United States.”
Mr. Peace extended his appreciation to the United States Attorneys’ Offices for the Middle District of Florida and Eastern District of Texas; the Justice Department’s Office of International Affairs; the Justice Department Criminal Division’s Narcotic and Dangerous Drug Section (NDDS); Judicial Attachés in Bogotá, Colombia; NDDS SOD Trial Attorneys; the United States Marshals Service; the Port Authority Police Department; the President of Colombia; the Colombian Attorney General’s Office; the Colombian National Police; the Colombian Ministry of National Defense; the Colombian Ministry of Justice; and the Colombian Ministry of Foreign Affairs, for assistance in the investigation, arrest, and extradition of the defendant.
“The guilty plea of alias Otoniel is the result of exemplary international cooperation,” said U.S. Attorney for the Southern District of Florida Markenzy Lapointe. “It also signifies years of hard work, commitment and perseverance of our Colombian and U.S. law enforcement partners to stem the flow of cocaine into the United States and to bring a major international drug trafficker to justice.”
“Today’s guilty plea sends a clear message to the leaders of drug cartels around the world that the DEA will stop at nothing to investigate and dismantle criminal drug networks that threaten the safety and health of the American people,” said Administrator Anne Milgram. “DEA investigated Otoniel—one of the most violent and prolific drug traffickers in the world—for almost 20 years. Under Otoniel’s leadership, Clan del Golfo shipped massive quantities of cocaine into the United States and killed rivals that threatened the cartels’ trafficking operations. I commend the men and women of the DEA for their many years of outstanding work that culminated in today’s guilty plea.”
“Today’s guilty plea ends Dairo Antonio Usuga David’s nearly 20-year reign of terror as a member and eventual leader of the notorious drug trafficking organization Clan del Golfo – an organization whose violent criminal activities pose a major strategic drug and national security threat to both the United States and Colombia,” said Ivan J. Arvelo, Special Agent in Charge for Homeland Security Investigations (HSI) in New York. “HSI will not stand by while narco-terrorists peddle poison around the globe for their own selfish financial gains. We will continue to work with our domestic and international law enforcement partners to disrupt and dismantle these dangerous transnational criminal enterprises and bring the perpetrators to justice.”
As today's plea details, Usaga David admitted to leading a savage and violent cartel responsible for trafficking enormous amounts of illegal narcotics to the United States. The FBI along with our law enforcement partners are dedicated in our efforts to make sure ruthless actors like Usaga David are held accountable for their destructive actions in our criminal justice system,” stated Assistant Director-in-Charge Driscoll.
“Today’s guilty plea further affirms the New York City Police Department’s unwavering commitment to ridding our streets of illegal narcotics,” stated NYPD Commissioner Keechant L. Sewell. “Because we know this vital work is far from over, we will continue to stand united with our local, state, federal, and international law enforcement partners in the fight against violent drug traffickers, wherever they are based. To that end, I thank and commend the New York State Police, the FBI, the DEA, Homeland Security Investigations, the U.S. Attorney for the Eastern District, and every other detective, agent, and attorney involved in this important case.”
New York State Police Acting Superintendent Steven A. Nigrelli said, “I applaud the remarkable work done by our State Police members and law enforcement partners in this case. Today’s guilty plea is proof that we will not tolerate those who bring dangerous drug activity into our communities and put the health and safety of others at risk. The State Police will continue to work with our partners to put an end to these violent enterprises to make our state a safer place.”
According to the Indictments, between June 2003 and October 2021, Úsuga David was the leader of a continuing criminal enterprise responsible for exporting multi-ton shipments of cocaine from Colombia to Mexico and Central America for ultimate importation into the United States. Additionally, Úsuga David participated in conspiracies to distribute narcotics via maritime vessels and also to manufacture and distribute cocaine, knowing and intending that the narcotics would be illegally imported into the United States.
The Clan Del Golfo
Between 2012 and through his capture by Colombian military and law enforcement forces on October 23, 2021, Úsuga David was the leader of the CDG.
The CDG is one of the most violent and most powerful criminal organizations in Colombia, and it is one of the largest distributors of cocaine in the world. With as many as 6,000 members, the CDG exercises military control over vast amounts of territory in the Urabá region of Antioquia, Colombia, one of the most lucrative drug trafficking areas within Colombia due to its proximity to the Colombia-Panama border and the Caribbean and Pacific coasts. Clad in military uniforms, CDG members employ military tactics and weapons to reinforce their power and incite wars and violence against rival drug traffickers, paramilitary organizations, and Colombian law enforcement authorities who threaten the CDG’s control.
The CDG funds its operations primarily through drug trafficking. It imposes a “tax” on any drug traffickers operating in territory under its control, charging fees for every kilogram of cocaine manufactured, stored, or transported through areas controlled by the organization. The CDG also directly exports cocaine, and coordinates the production, purchase, and transfer of weekly and bi-weekly multi-ton shipments of cocaine from Colombia into Central America and Mexico for ultimate importation to the United States.
To maintain control over CDG territory, Úsuga David and the CDG employed an army of “sicarios,” or hitmen, who carried out acts of violence, including murders, assaults, kidnappings, torture, and assassinations against competitors and those deemed traitors to the organization, as well as their family members. The CDG murdered and assaulted Colombian law enforcement officers, Colombian military personnel, rival drug traffickers and paramilitaries, potential witnesses, and civilians. Úsuga David and the CDG used violence to promote and enhance the reputation, and position of the CDG with respect to rival criminal organizations; preserve, protect, and expand the CDG’s power and territory; finance the CDG’s operations and enrich its leaders through the collection of drug debts; maintain discipline among its members and associates; and protect CDG members from arrest and prosecution by attempting to silence potential witnesses and retaliating against law enforcement authorities and those assisting law enforcement.
The Defendant’s Conduct
According to court filings, Úsuga David served as a high-ranking leader within the CDG from its inception and was its principal leader for 10 years. During his reign, Úsuga David oversaw all of the CDG’s activities and directed its members to engage in extensive criminal acts, including acts of violence, mandated “strikes” or shutdowns of all business activities and civilian movement within designated regions of Colombia, retaliation against law enforcement authorities and potential witnesses, the exertion of control over drug manufacturing facilities and trafficking routes, and the exportation of cocaine in multi-ton quantities.
Úsuga David assumed power and territorial control over vast swaths of the Colombian coastline and personally directed members of the CDG to commit acts of violence to reinforce that power. This included violence against civilians. For example, in early 2012, following the death of Úsuga David’s brother, Juan de Dios Úsuga David (also known as “Giovanni”), in a police raid, Úsuga David ordered that a multi-day shutdown or “strike” be imposed on towns and communities within the CDG’s control. During the strike, CDG members ordered that all businesses remain closed, and that residents stay in their homes. For multiple days, the streets remained empty, as Úsuga David ordered CDG members to execute those who did not adhere to his orders.
Úsuga David also personally ordered CDG members to commit murders of specific individuals, including the murders of rival drug traffickers and members of the CDG who betrayed him or the organization. For example, Úsuga David ordered the assassinations of multiple individuals who worked for a rival drug trafficking organization run by Daniel Barrera Barrera. Úsuga David also ordered the torture and murder of a CDG member who provided information to Barrera’s organization. That individual was subsequently tortured, buried alive, exhumed, and beheaded post-mortem.
In addition, Úsuga David regularly directed CDG members to use violence, intimidation, and murder to dissuade law enforcement authorities from performing their duties and to silence potential witnesses. For example, at Úsuga David’s direction, the CDG carried out organized campaigns, referred to as “Plan Pistolas,” to kill Colombian law enforcement and military personnel using military-grade weapons, including grenades, explosives, and assault rifles. Úsuga David also offered bounties for the murder of Colombian police officers and military personnel to intimidate law enforcement authorities and prevent them from capturing him or interfering in the CDG’s business. Úsuga David’s organization made numerous attempts to assassinate individuals who were believed to be cooperating with law enforcement. For example, CDG members attempted to poison a witness with cyanide while he was imprisoned overseas and attempted to assassinate the witness’s attorney.
Úsuga David was also extensively involved in the narcotics activities that funded the CDG and enabled its power. He oversaw the CDG’s drug trafficking exports and directed a network of “debt collectors” tasked with the enforcement and collection of taxes paid by drug trafficking organizations that operated in regions controlled by the CDG. In addition, Úsuga David controlled cocaine manufacturing facilities and used the CDG’s extensive distribution network to export cocaine independently for his own personal profit.
Asset Forfeiture
As part of the plea agreement, Úsuga David agreed to pay a $216 million forfeiture money judgment. The forfeiture money judgment is subject to the Agreement between the Government of the United States of America and the Government of the Republic of Colombia concerning the Sharing of Forfeited Proceeds and Instrumentalities of Crime.
The investigation, extradition, and conviction of Úsuga David is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
The government’s case is being handled by the Eastern District of New York’s International Narcotics and Money Laundering Section. Assistant United States Attorneys Francisco J. Navarro, Gillian A. Kassner, and Tara B. McGrath are in charge of the prosecution with assistance from Paralegal Specialist Sophia Cronin, and Assistant United States Attorney Claire S. Kedeshian of the Office’s Asset Recovery Section is handling forfeiture matters. Assistant United States Attorney Robert Emery of the Southern District of Florida and Assistant United States Attorney Alexander Li of the Southern District of New York led the prosecutions for their respective offices.
The Defendant:
Dairo Antonio Úsuga David (also known as “Otoniel,” “Mao,” “Gallo” and “Mauricio-Gallo”)
Age: 51
Antioquia, ColombiaE.D.N.Y. Docket Nos. 14-CR-625 (S-4) (DLI)
23-CR-021 (DLI)
23-CR-027 (DLI)
Ex Líder de la Violenta Organización del "Clan del Golfo" Se Declara Culpable de Participar Activamente en Operaciones Delictivas y Otros Delitos ConexosRead the Press Release
Dairo Antonio Úsuga David, alias, “Otoniel," quién dirigía una organización paramilitar llegó a ser uno de los mayores traficantes de cocaína del mundo y a ser el responsable de ordenar que se cometieran despiadados actos de violencia contra militares, civiles inocentes y fuerzas del orden público
Dairo Antonio Úsuga David, conocido por sus varios alias, incluyendo el de "Otoniel", se declaró culpable hoy de dirigir una organización delictiva: la organización paramilitar colombiana y multimillonaria conocida como el "Clan del Golfo" (CDG). Úsuga David también se declaró culpable de narcotráfico. Durante la imposición de la pena, Úsuga David enfrentará una condena mínima de 20 años de prisión a cadena perpetua. Como parte del acuerdo logrado con la fiscalía, Úsuga David también aceptó pagar $216 millones por concepto de incautación mediante un fallo judicial. El procedimiento se llevó a cabo ante la Jueza Federal del Distrito, Dora L. Irizarry.
A Úsuga David le fueron formulados cargos por medio de las imputaciones presentadas por el Distrito Este de Nueva York, Estados Unidos c. Dairo Antonio Úsuga David, et al., 14-CR-625 (S-4) (E.D.N.Y.) ("Acusación del EDNY"), el Distrito Sur de Florida, Estados Unidos vs. Dairo Antonio Úsuga David, 15-CR-20403 (S-1) (“acusación del SDFL"), y el Distrito Sur de Nueva York, Estados Unidos vs. Dairo Antonio Úsuga David, 04-CR-962 (S-3) ("acusación del SDNY") (colectivamente las "acusaciones").
En la acusación del EDNY se le imputa a Úsuga David, entre otras cosas, de dirigir una organización delictiva desde junio de 2003 hasta octubre de 2021, y una organización delictiva para tráfico de narcóticos por vía marítima desde el 2002 hasta el 23 de octubre del 2021. En la denuncia del SDFL se le acusa a Úsuga David, entre otras cosas, de asociación delictiva para importación de narcóticos desde el 2001 hasta abril del 2009. Úsuga David fue extraditado de Colombia al Distrito Este de Nueva York en mayo del 2022.
En virtud de un acuerdo de culpabilidad con la fiscalía, Úsuga David aceptó la transferencia de las denuncias del SDFL y del SDNY para su aceptación de culpabilidad e imposición de pena en la jurisdicción federal del Distrito Este de Nueva York. Así Úsuga David será responsabilizado en el Distrito Este de Nueva York por delitos cometidos abarcados por las tres denuncias.
Merrick B. Garland, Fiscal General de los Estados Unidos; Breon Peace, Fiscal Federal de los Estados Unidos por el Distrito Este de Nueva York; Marke Holanzy Lapointe, Fiscal Federal de los Estados Unidos por el Distrito Sur de Florida; Damian Williams, Fiscal Federal por el Distrito Sur de Nueva York; Anne Milgram, Directora, Administración para el Control de Drogas de los Estados Unidos (DEA); Iván Arvelo, agente encargado, Investigaciones de Seguridad Nacional, Nueva York (HSI); Michael J. Driscoll, Subdirector a cargo, Oficina Federal de Investigaciones, Oficina de Campo de Nueva York (FBI); Keechant L. Sewell, Comisionado, Departamento de Policía de la Ciudad de Nueva York (NYPD); y Steven A. Nigrelli, Superintendente Interino de la Policía Estatal de Nueva York (NYSP), dieron a conocer dicha declaración de culpabilidad.
“Con su admisión de culpabilidad en el día de hoy, ha llegado a su fin el sangriento reinado del narcotraficante colombiano más violento y señalado desde Pablo Escobar. Úsuga David ahora ha sido responsabilizado por dirigir el Clan del Golfo, que fue responsable por el tráfico de toneladas de narcótico desde Colombia a Estados Unidos y un sinnúmero de incursiones violentas contra las fuerzas del orden público, personal militar y civiles, tanto en Colombia como en otros lugares", declaró el Fiscal Federal Peace. “La declaración de culpabilidad de hoy es el resultado de la determinación y esfuerzo de un gran número de elementos del orden público de los Estados Unidos, Colombia y otros lugares. Esperamos que haber traído a Úsuga David ante la justicia pueda proporcionar una medida de consuelo a las víctimas de su tráfico de narcóticos y violencia en Colombia y Estados Unidos.”
El Sr. Peace extendió su agradecimiento a las oficinas de la fiscalía federal de los Estados Unidos para el Distrito Central de Florida y el Distrito Este de Texas; la Oficina de Asuntos Internacionales del Departamento de Justicia; la Sección de Narcóticos y Drogas Peligrosas (NDDS) de la División Penal del Departamento de Justicia; Agregados Judiciales en Bogotá, Colombia; Abogados litigantes de NDDS SOD; el Servicio de Alguaciles de los Estados Unidos; el Departamento de Policía de la Autoridad Portuaria; el Presidente de Colombia; la Fiscalía General de la Nación; la Policía Nacional de Colombia; el Ministerio de Defensa Nacional de Colombia; el Ministerio de Justicia de Colombia; y al Ministerio de Relaciones Exteriores de Colombia, por su asistencia en la investigación, detención y extradición del acusado.
“La declaración de culpabilidad de alias Otoniel es el resultado de una cooperación internacional ejemplar”, dijo el fiscal federal para el Distrito Sur de Florida, Markenzy Lapointe. “También representa años de arduo trabajo, compromiso y perseverancia de nuestros socios colombianos y estadounidenses de las agencias del orden público para detener el flujo de cocaína hacia los Estados Unidos y llevar a un importante narcotraficante internacional ante la justicia.”
“La admisión de culpabilidad en este día envía un mensaje claro a los líderes de los cárteles de la droga de todo el mundo de que la DEA no se detendrá ante nada para investigar y desmantelar las redes criminales de drogas que amenazan la seguridad y la salud del pueblo estadounidense”, dijo la administradora Anne Milgram. “La DEA investigó a Otoniel, uno de los narcotraficantes más violentos y prolíficos del mundo, durante casi 20 años. Bajo el liderazgo de Otoniel, el Clan del Golfo envió cantidades masivas de cocaína a los Estados Unidos y mató a rivales que amenazaban las operaciones de tráfico de los cárteles. Felicito a los hombres y mujeres de la DEA por sus muchos años de destacada labor que culminó en la declaración de culpabilidad de hoy.”
“La declaración de culpabilidad del día de hoy pone fin al reinado de terror de casi 20 años de Dairo Antonio Úsuga David como miembro y eventual líder de la notoria organización narcotraficante Clan del Golfo, una organización cuyas actividades criminales violentas representan una importante amenaza estratégica relacionadas con drogas y la seguridad nacional tanto para Estados Unidos como para Colombia”, dijo Iván J. Arvelo, Agente Federal a cargo la sección de Investigaciones del Departamento de Seguridad Nacional (HSI) en Nueva York. “HSI no se quedará de brazos cruzados mientras los narcoterroristas venden su veneno en todo el mundo para conseguir ganancias con sus fines egoístas. Continuaremos trabajando con nuestros socios nacionales e internacionales de organismos de seguridad para interrumpir y desmantelar estas peligrosas organizaciones criminales transnacionales y traer a los perpetradores ante la justicia.”
“Como se detalla en la declaración del día de hoy, Úsuga David admitió haber liderado brutal y violento un cártel responsable del tráfico de enormes cantidades de narcóticos a los Estados Unidos. El FBI, junto con nuestros socios encargados de las fuerzas policiales, estamos comprometidos en nuestro esfuerzo para asegurarnos que actores despiadados como Úsuga David rindan cuentas por sus acciones destructivas ante nuestros tribunales penales”, declaró el subdirector encargado Driscoll.
El superintendente interino de la Policía Estatal de Nueva York, Steven A. Nigrelli, dijo: “Aplaudo el notable trabajo realizado por nuestros miembros de la Policía Estatal y socios encargados de hacer cumplir la ley en este caso. La declaración de culpabilidad de hoy es una prueba de que no toleraremos a aquellos que traen actividades peligrosas de drogas a nuestras comunidades y ponen en riesgo la salud y la seguridad de los demás. La Policía Estatal continuará trabajando con nuestros socios para poner fin a estas empresas violentas para hacer de nuestro estado un lugar más seguro.”
“Esta declaración de culpabilidad en el día de hoy, afirma aún más el compromiso inquebrantable del Departamento de Policía de la Ciudad de Nueva York de librar a nuestras calles de narcóticos ilegales”, declaró el comisionado del departamento de policía de Nueva York, Keechant L. Sewell. “Debido a que sabemos que esta importante labor está lejos de terminar, continuaremos unidos con nuestros agencias locales, estatales, federales e internacionales encargadas de hacer cumplir la ley en la lucha contra los narcotraficantes violentos, dondequiera que se encuentren. Con ese fin, agradezco y elogio a la Policía del Estado de Nueva York, el FBI, la DEA, al Departamento de Investigaciones de Seguridad Nacional, al Fiscal Federal para el Distrito Este y a todos los demás detectives, agentes y procuradores de justicia involucrados en este importante caso.”
Según se le imputa, entre junio del 2003 y octubre del 2021, Úsuga David fue el líder de una red de delincuencia organizada responsable de exportar cargamentos de varias toneladas de cocaína desde Colombia a México y Centroamérica para su destino final, Estados Unidos. Además, Úsuga David participó en un sinnúmero de envíos de varias toneladas para el tráfico de narcóticos a través de embarcaciones marítimas y también para producción y distribución de cocaína, a sabiendas y con la intención de que dichos estupefacientes serían importados ilegalmente a los Estados Unidos.
El Clan del Golfo
Entre el 2012, hasta el momento de su captura por las fuerzas militares y policiales colombianas, el 23 de octubre del 2021, Úsuga David estuvo al mando del CDG.
El CDG, una de las organizaciones criminales más violentas y poderosas de Colombia, es uno de los mayores distribuidores de cocaína del mundo. Con aproximadamente 6.000 miembros, el CDG ejerce control militar sobre vastas extensiones de territorio en la región de Urabá en Antioquia, Colombia, una de las áreas de narcotráfico más lucrativas dentro de Colombia debido a su proximidad a la frontera entre Colombia y Panamá y las costas del Caribe y el Pacífico. Vestidos con uniformes militares, los miembros del CDG emplean tácticas y armamento militar como demostración de su poder y para incitar a la guerra y la violencia contra narcotraficantes rivales, organizaciones paramilitares y autoridades policiales colombianas que amenacen el control del CDG.
El CDG financia sus operaciones principalmente a través del tráfico de drogas. Impone un "impuesto" a cualquier narcotraficante que opere en el territorio bajo su control, cobrando tarifas por cada kilogramo de cocaína que sea producido, almacenado o transportado a través de áreas controladas por la organización. El CDG también exporta directamente cocaína y coordina la producción, compra y transferencia de cargamentos semanal y quincenalmente de varias toneladas de cocaína desde Colombia a Centroamérica y México para su destino final, los Estados Unidos.
Para mantener el control sobre el territorio del CDG, Úsuga David y el CDG empleaban un ejército de "sicarios", o gatilleros, que llevaron a cabo actos de violencia, incluyendo homicidios, asaltos, secuestros, torturas y asesinatos contra competidores y aquellos considerados traidores a la organización, y así como sus familiares. El CDG asesinaba y agredía a agentes del orden público de Colombia hola, personal militar colombiano, narcotraficantes y paramilitares rivales, testigos potenciales y a civiles. Úsuga David y el CDG hicieron uso de violencia para promover y mejorar la reputación y la posición del CDG con respecto a las organizaciones criminales rivales; preservar, proteger y expandir el poder y el territorio del CDG; financiar las operaciones del CDG y enriquecer a sus líderes a través del cobro de deudas por drogas; mantener la disciplina entre sus miembros y asociados; y proteger a los miembros del CDG de la detención y el enjuiciamiento a través del intento de silenciar testigos potenciales y tomar represalias represalias contra autoridades policiales y aquellos que asistan a las autoridades en el cumplimiento de la ley.
La conducta del acusado
Según documentos judiciales, Úsuga David se desempeñó como líder de alto rango dentro del CDG desde su inicio y fue su principal líder durante 10 años. Bajo su dirección, Úsuga David supervisaba todas las actividades del CDG y ordenaba a sus miembros llevar a cabo una serie de actos delictivos, que incluían él uso de la violencia, ordenar "huelgas" o cese de toda actividad comercial y cese de desplazamiento de la población civil dentro de regiones designadas de Colombia, represalias contra las autoridades policiales y contra posibles testigos, el ejercicio del control sobre las instalaciones de producción de drogas y las rutas de tráfico y la exportación de toneladas de cocaína.
Úsuga David asumió el poder y el control territorial sobre vastas franjas de la costa colombiana y dirigió personalmente a los miembros del CDG a cometer actos de violencia para afianzar dicho poder. Esto incluía la violencia contra civiles. Por ejemplo, a principios del 2012, tras la muerte del hermano de Úsuga David, Juan de Dios Úsuga David (también conocido como "Giovanni"), en una redada policial, Úsuga David ordenó que se impusiera un cierre o "huelga" de varios días en las ciudades y comunidades bajo el control del CDG. Durante la huelga, los miembros de CDG ordenaron que todos los negocios permanecieran cerrados y que los residentes permanecieran en sus hogares. Durante varios días, las calles permanecieron vacías, ya que Úsuga David ordenó a los miembros del CDG que ejecutaran a aquellos que no cumplieran con sus órdenes.
Úsuga David también ordenaba personalmente a los miembros del CDG que cometieran asesinatos de particulares, incluidos los asesinatos de narcotraficantes rivales y miembros del CDG que lo hayan traicionado a él o a la organización. Por ejemplo, Úsuga David ordenó el asesinato de varias personas que trabajaban para una organización narcotraficante rival dirigida por Daniel Barrera Barrera. Úsuga David también ordenó la tortura y asesinato de un miembro del CDG que proporcionó información a la organización de Barrera. Ese individuo fue posteriormente torturado, enterrado vivo, exhumado y decapitado post mortem.
Además, Úsuga David ordenaba Con frecuencia a miembros del CDG que hicieran uso de la violencia, intimidación y el asesinato para disuadir a las autoridades policiales de cumplir con sus deberes y silenciar a posibles testigos. Por ejemplo, bajo la dirección de Úsuga David, el CDG llevó a cabo campañas organizadas, conocidas como "Plan Pistolas", para matar a personal policial y militar colombiano utilizando armas de tipo militar, las que incluían: granadas, explosivos y rifles de asalto. Úsuga David también ofrecía recompensas por el asesinato de policías y militares colombianos para intimidar a las autoridades policiales y evitar que lo capturasen o interfieran con los asuntos del CDG. La organización de Úsuga David llevó a cabo numerosos intentos para asesinar a personas que se creía que estaban cooperando con la policía. Por ejemplo, miembros del CDG intentaron envenenar con cianuro a un testigo que se encontraba encarcelado en el extranjero e intentaron también asesinar a su abogado.
Úsuga David también estuvo ampliamente involucrado en actividades de tráfico de estupefacientes que financiaban y permitían ganar poder al CDG. Supervisaba todas las exportaciones de narcotráfico del CDG y dirigía una red de "cobradores de deudas" encargados de imponer y recaudar impuestos cobrados a organizaciones de narcotráfico que operaban en regiones controladas por el CDG. Además, Úsuga David controlaba las instalaciones de producción de cocaína y utilizaba la extensa red de distribución del CDG para exportar cocaína de forma independiente para beneficio personal.
Confiscación de activos
Como parte del acuerdo pactado con la fiscalía, Úsuga David acordó pagar una incautación de $ 216 millones. El fallo sobre la incautación de este monto está sujeto a la concertación entre el Gobierno de los Estados Unidos de América y el Gobierno de la República de Colombia sobre la Participación y Decomiso de los Instrumentos y Productos del Delito.
La investigación, extradición y condena de Úsuga David es parte de una investigación de la unidad de Tarea de Control de Drogas contra el Crimen Organizado (OCDETF). OCDETF identifica, interrumpe y desmantela a los narcotraficantes de más alto nivel, blanqueadores de dinero, pandillas y organizaciones delictivas transnacionales que amenazan a los Estados Unidos, mediante el uso de un enfoque dirigido por fiscales, impulsado por datos de inteligencia y de múltiples agencias que aprovechas las fortalezas de las agencias federales, estatales y locales del orden público contra las redes delictivas.
La causa está siendo presentada por la Sección Internacional de Narcóticos y Lavado de Dinero del Distrito Este de Nueva York. Francisco J. Navarro, fiscal federal del ministerio público, Gillian A. Kassner y Tara B. McGrath están a cargo de la acusación con el apoyo de la asistente legal Sophia Cronin, y la Fiscal Federal Adjunta Claire S. Kedeshian de la Oficina de la Sección de Recuperación de Activos está manejando todo lo relacionado con la incautación. El Fiscal Federal Adjunto Robert Emery del Distrito Sur de Florida y el Fiscal Federal Adjunto Alexander Li del Distrito Sur de Nueva York dirigieron los procesamientos para sus respectivas oficinas.
The Defendant:
Dairo Antonio Úsuga David (también conocido como "Otoniel", "Mao", "Gallo" y "Mauricio-Gallo")
Edad: 51
Antioquia, ColombiaE.D.N.Y. Expediente Núm. 14-CR-625 (S-4) (DLI)
23-CR-021 (DLI)
23-CR-027 (DLI)
Queens Man Sentenced to 36 Months in Prison for Multi-Million Dollar Prize Notice Fraud SchemeRead the Press Release
CENTRAL ISLIP, NY – Earlier today, in federal court in Central Islip, Scott Gammon was sentenced by United States District Judge Joan M. Azrack to 36 months in prison for participating in a mass mailing scheme that tricked consumers into paying fees for falsely promised cash prizes. As part of the sentence, Gammon was also ordered to forfeit $139,611.97.
Breon Peace, United States Attorney for the Eastern District of New York, Brian M. Boynton, Principal Deputy Assistant Attorney General of the Justice Department’s Civil Division, and Daniel B. Brubaker, Inspector-in-Charge, United States Postal Inspection Service (USPIS), announced the sentence.
“Financially exploiting the elderly and other victims through fraudulent prize schemes is a form of abuse and deserving of punishment as today’s sentence demonstrates,” stated United States Attorney Peace. “A term in prison should deter others from preying on the vulnerable.”
“Participants in fraud schemes face the prospect of federal prison,” stated Principal Deputy Assistant Attorney General Boynton. “The Department of Justice is committed to protecting elderly and vulnerable Americans and to prosecuting individuals who engage in such schemes.”
“Today’s sentencing brings to a close the investigation of Mr. Gammon, who devised a fake prize promotion scheme designed to defraud older Americans and steal from those who believed they had won a prize. Unfortunately, for those who participated, they realized too late that they had been swindled. When a prize did not materialize, and their money was not returned, they became victims. Postal Inspectors remind consumers to be ever vigilant and play an active role in protecting their money. If you’re asked to pay for a prize you didn’t enter to win, it’s a scam,” stated USPIS Inspector-in-Charge Brubaker.
From August 2014 through August 2019, Gammon engaged in a direct-mail scheme that sent fraudulent prize notification mailings to thousands of consumers. The mailings induced consumers to pay a fee, purportedly in return for a large cash prize. None of the consumers who sent a fee ever received such a prize. Co-defendants Christopher King and Natasha Khan also pleaded guilty to conspiracy to commit mail fraud and are awaiting sentencing.The U.S. Postal Inspection Service investigated the case.
Assistant United States Attorney Charles P. Kelly of the Eastern District of New York’s Long Island Criminal Division is prosecuting the case with Trial Attorneys Daniel Zytnick and Timothy Finley of the Civil Division’s Consumer Protection Branch. Assistant United States Attorney Tanisha Payne of the Eastern District’s Asset Recovery Section is handing forfeiture matters.
The department seeks to prevent the widespread losses seniors and other consumers suffer from fraud schemes. The best method to prevent fraud is to share information about the various types of elder fraud schemes with relatives, friends, neighbors and other seniors who can use that information to protect themselves.
If you or someone you know is age 60 or older and has been a victim of financial fraud, help is available at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311). This Department of Justice hotline, managed by the Office for Victims of Crime, is staffed by experienced professionals who provide personalized support to callers by assessing the needs of the victim and identifying relevant next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies, and provide resources and referrals, on a case-by-case basis. Reporting is the first step. Reporting can help authorities identify those who commit fraud, and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses. The hotline is staffed seven days a week from 6:00 a.m. to 11:00 p.m. ET. English, Spanish and other languages are available.
Additional information about the Consumer Protection Branch and its enforcement efforts may be found at www.justice.gov/civil/consumer-protection-branch. Information about the Department of Justice’s Elder Fraud Initiative is available at www.justice.gov/elderjustice.
The Defendant Sentenced Today:
SCOTT GAMMON
Age: 48
Howard Beach, QueensThe Defendants Awaiting Sentencing
CHRISTOPHER KING
Age: 37
Oceanside, New YorkNATASHA KHAN
Age: 39
Elmont, New YorkE.D.N.Y. Docket No.: 22-CR-85 (JMA)
Владелец Бруклинской Компании, Оказывающей Услуги Кредитного Консультирования, Обвинен В Мошенничестве В Отношении КлиентовRead the Press Release
Сегодня в федеральном суде Бруклина было обнародовано обвинительное заключение по восьми пунктам, в котором Марату Лернеру [Marat Lerner], президенту компании Lerner Group, было предъявлено обвинение в заговоре с целью совершения мошенничества с использованием электронных средств, мошенничества с использованием электронных средств и отмывания денег в связи со схемой кражи у клиентов его компании по изменению ипотечных кредитов.
Бреон Пис [Breon Peace], прокурор США по Восточному округу Нью-Йорка, и Майкл Дж. Дрисколл [Michael J. Driscoll], помощник директора Федерального бюро расследований (ФБР) в Региональном управлении Нью-Йорка, объявили об аресте и предъявлении обвинений.
«Обвиняемый охотился на иммигрантов в русской общине Бруклина, обремененных ипотечным долгом, похищая их американскую мечту с помощью схемы, построенной на ложных обещаниях помочь им сохранить свои дома, но на самом деле, пользовался их доверием для личного обогащения, — заявил прокурор США Пис. — Прокуратура уделяет первоочередное внимание защите уязвимых жителей нашего округа, и мы призываем их добровольно дать показания и довериться нам, чтобы добиться справедливости для них».
Г-н Пис выразил признательность Погранично-таможенной службе США и Департаменту полиции города Нью-Йорка за их помощь в этом вопросе.
«Обвиняемый, как мы утверждаем сегодня, финансировал свой расточительный образ жизни, осуществляя длительную аферу по использованию доверия и страхов своих жертв с целью похищения их денег, а не выполнял свое обещание изменить их ипотечные кредиты», — заявил помощник директора ФБР Дрисколл. — ФБР будет продолжать следить за тем, чтобы любой человек, желающий обмануть и ввести в заблуждение клиентов с целью похищения их с трудом заработанных денег, столкнется с последствиями в системе уголовного правосудия. Мы призываем любых дополнительных жертв схемы г-на Лернера связаться с нами по телефону 1-800-CALL-FBI или через Интернет по адресу www.iC3.gov».
В обвинительном заключении утверждается, что в период приблизительно с августа 2016 года по январь 2021 года Лернер вместе с другими лицами управлял компанией Lerner Group. Lerner Group обещала клиентам, что может помочь им изменить их ипотечные кредиты, уменьшив ежемесячные платежи и непогашенные остатки по ипотечным кредитам. Лернер использовал свой доступ к банковской информации своих клиентов для создания чеков, которые выглядели как ежемесячные выплаты по ипотеке предполагаемому агенту условного депонирования под названием Testoni & Villa, а также ипотечным банкам своих клиентов. Но на самом деле Лернер тайно контролировал Testoni & Villa, и вместо того чтобы держать деньги на условном депонировании или переводить их в ипотечные банки, Лернер депонировал чеки на счет, который сам же и контролировал и который использовал для различных личных расходов, включая предметы роскоши и дорогие блюда, а также автомобиль BMW. В общей сложности Лернер присвоил не менее 550 000 долларов своих клиентов.
Если вы были клиентом компании Lerner Group и хотели бы подать жалобу, посетите веб-сайт www.iC3.gov. В своей жалобе укажите «Lerner Group» или «Marat Lerner».
Обвинения в обвинительном заключении являются утверждениями, и ответчик считается невиновным до тех пор, пока его вина не будет доказана. В случае признания виновным Лернеру грозит до 20 лет лишения свободы.
Государственное обвинение находится в ведении Отдела по борьбе с мошенничеством в сфере бизнеса и ценных бумаг. За уголовное преследование отвечает помощник прокурора США Ник М. Аксельрод [Nick M. Axelrod].
The Ответчикs:
МАРАТ ЛЕРНЕР
Возраст: 40
Бруклин, Нью-Йорк№ дела E.D.N.Y. 23-CR-15 (NGG)
Владелец Бруклинской Компании, Оказывающей Услуги Кредитного Консультирования, Обвинен В Мошенничестве В Отношении КлиентовRead the Press Release
Сегодня в федеральном суде Бруклина было обнародовано обвинительное заключение по восьми пунктам, в котором Марату Лернеру [Marat Lerner], президенту компании Lerner Group, было предъявлено обвинение в заговоре с целью совершения мошенничества с использованием электронных средств, мошенничества с использованием электронных средств и отмывания денег в связи со схемой кражи у клиентов его компании по изменению ипотечных кредитов.
Бреон Пис [Breon Peace], прокурор США по Восточному округу Нью-Йорка, и Майкл Дж. Дрисколл [Michael J. Driscoll], помощник директора Федерального бюро расследований (ФБР) в Региональном управлении Нью-Йорка, объявили об аресте и предъявлении обвинений.
«Обвиняемый охотился на иммигрантов в русской общине Бруклина, обремененных ипотечным долгом, похищая их американскую мечту с помощью схемы, построенной на ложных обещаниях помочь им сохранить свои дома, но на самом деле, пользовался их доверием для личного обогащения, — заявил прокурор США Пис. — Прокуратура уделяет первоочередное внимание защите уязвимых жителей нашего округа, и мы призываем их добровольно дать показания и довериться нам, чтобы добиться справедливости для них».
Г-н Пис выразил признательность Погранично-таможенной службе США и Департаменту полиции города Нью-Йорка за их помощь в этом вопросе.
«Обвиняемый, как мы утверждаем сегодня, финансировал свой расточительный образ жизни, осуществляя длительную аферу по использованию доверия и страхов своих жертв с целью похищения их денег, а не выполнял свое обещание изменить их ипотечные кредиты», — заявил помощник директора ФБР Дрисколл. — ФБР будет продолжать следить за тем, чтобы любой человек, желающий обмануть и ввести в заблуждение клиентов с целью похищения их с трудом заработанных денег, столкнется с последствиями в системе уголовного правосудия. Мы призываем любых дополнительных жертв схемы г-на Лернера связаться с нами по телефону 1-800-CALL-FBI или через Интернет по адресу www.iC3.gov».
В обвинительном заключении утверждается, что в период приблизительно с августа 2016 года по январь 2021 года Лернер вместе с другими лицами управлял компанией Lerner Group. Lerner Group обещала клиентам, что может помочь им изменить их ипотечные кредиты, уменьшив ежемесячные платежи и непогашенные остатки по ипотечным кредитам. Лернер использовал свой доступ к банковской информации своих клиентов для создания чеков, которые выглядели как ежемесячные выплаты по ипотеке предполагаемому агенту условного депонирования под названием Testoni & Villa, а также ипотечным банкам своих клиентов. Но на самом деле Лернер тайно контролировал Testoni & Villa, и вместо того чтобы держать деньги на условном депонировании или переводить их в ипотечные банки, Лернер депонировал чеки на счет, который сам же и контролировал и который использовал для различных личных расходов, включая предметы роскоши и дорогие блюда, а также автомобиль BMW. В общей сложности Лернер присвоил не менее 550 000 долларов своих клиентов.
Если вы были клиентом компании Lerner Group и хотели бы подать жалобу, посетите веб-сайт www.iC3.gov. В своей жалобе укажите «Lerner Group» или «Marat Lerner».
Обвинения в обвинительном заключении являются утверждениями, и ответчик считается невиновным до тех пор, пока его вина не будет доказана. В случае признания виновным Лернеру грозит до 20 лет лишения свободы.
Государственное обвинение находится в ведении Отдела по борьбе с мошенничеством в сфере бизнеса и ценных бумаг. За уголовное преследование отвечает помощник прокурора США Ник М. Аксельрод [Nick M. Axelrod].
The Ответчикs:
МАРАТ ЛЕРНЕР
Возраст: 40
Бруклин, Нью-Йорк№ дела E.D.N.Y. 23-CR-15 (NGG)
Owner of Brooklyn-Based Credit Counseling Business Indicted for Defrauding ClientsRead the Press Release
An eight-count indictment was unsealed today in federal court in Brooklyn charging Marat Lerner, president of the Lerner Group, with conspiracy to commit wire fraud, wire fraud, and money laundering in connection with a scheme to steal from clients of his mortgage loan modification business.
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.
“The defendant preyed on immigrants burdened by mortgage debt in the Russian community in Brooklyn, stealing their American dream through a scheme built on false promises to help them keep their homes, but in truth, he took advantage of their trust to enrich himself,” stated United States Attorney Peace. “This Office has prioritized protecting vulnerable members of our district and we encourage them to come forward and put their trust in us to seek justice for them.”
Mr. Peace expressed his appreciation to the U.S. Customs and Border Protection and the New York City Police Department for their assistance in this matter.
“The defendant, as we allege today, funded his own lavish lifestyle by operating a lengthy scam exploiting his victims' trust and fears in order to steal their money rather than fulfill his promise to modify their mortgages,” stated FBI Assistant Director-in-Charge Driscoll. “The FBI will continue to make sure any individual willing to cheat and deceive clients out of their hard-earned money will face the consequences in the criminal justice system. We urge any additional victims of Mr. Lerner’s scheme to contact us at 1-800-CALL-FBI or online at www.iC3.gov.”
The indictment alleges that, in or about and between August 2016 and January 2021, Lerner, together with others, operated the Lerner Group. The Lerner Group promised clients it could help them modify their mortgages by reducing their monthly mortgage payments and their outstanding mortgage balances. Lerner used his access to his clients’ banking information to create checks that appeared to be monthly mortgage payments to a purported escrow agent called Testoni & Villa and to his clients’ mortgage banks. But in truth, Lerner secretly controlled Testoni & Villa, and instead of holding the money in escrow, or transferring it to the mortgage banks, Lerner deposited the checks in an account that he controlled, and which he used for a variety of personal expenses, including luxury goods and expensive meals and a BMW automobile. In total, Lerner misappropriated at least $550,000 from his clients.
If you were a Lerner Group client and would like to file a complaint, please visit www.iC3.gov. Please reference “Lerner Group” or “Marat Lerner” in your complaint.
The charges in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty. If convicted, Lerner faces up to 20 years in prison.
The government’s case is being handled by the Office’s Business and Securities Fraud Section. Assistant United States Attorney Nick M. Axelrod is in charge of the prosecution.
The Defendants:
MARAT LERNER
Age: 40
Brooklyn, New YorkE.D.N.Y. Docket No. 23-CR-15 (NGG)
Founder and Majority Owner of Cryptocurrency Exchange Charged with Processing over $700 Million of Illicit FundsRead the Press Release
The founder and majority owner of a cryptocurrency exchange, Bitzlato Ltd. (Bitzlato), was arrested last night in Miami for his alleged operation of a money transmitting business that transported and transmitted illicit funds and that failed to meet U.S. regulatory safeguards, including anti-money laundering requirements.
Anatoly Legkodymov, 40, a Russian national who resides in Shenzhen, People’s Republic of China, is scheduled to be arraigned this afternoon in the U.S. District Court for the Southern District of Florida. French authorities and the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) are taking concurrent enforcement actions.
“Today the Department of Justice dealt a significant blow to the cryptocrime ecosystem,” said Deputy Attorney General Lisa O. Monaco. “Overnight, the Department worked with key partners here and abroad to disrupt Bitzlato, the China-based money laundering engine that fueled a high-tech axis of cryptocrime, and to arrest its founder, Russian national Anatoly Legkodymov. Today’s actions send the clear message: whether you break our laws from China or Europe – or abuse our financial system from a tropical island – you can expect to answer for your crimes inside a United States courtroom.”
“As alleged, the defendant helped operate a cryptocurrency exchange that failed to implement required anti-money laundering safeguards and enabled criminals to profit from their wrongdoing, including ransomware and drug trafficking,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “The National Cryptocurrency Enforcement Team’s tremendous efforts to disrupt Bitzlato and arrest the defendant demonstrate that we will continue to work with our partners – both foreign and domestic – to combat cryptocurrency-fueled crimes, even if they transcend international borders.”
According to court documents, Legkodymov is a senior executive and the majority shareholder of Bitzlato, a Hong Kong-registered cryptocurrency exchange that operates globally. Bitzlato has marketed itself as requiring minimal identification from its users, specifying that “neither selfies nor passports [are] required.” On occasions when Bitzlato did direct users to submit identifying information, it repeatedly allowed them to provide information belonging to “straw man” registrants.
“Institutions that trade in cryptocurrency are not above the law and their owners are not beyond our reach,” said U.S. Attorney Breon Peace for the Eastern District of New York. “As alleged, Bitzlato sold itself to criminals as a no-questions-asked cryptocurrency exchange, and reaped hundreds of millions of dollars’ worth of deposits as a result. The defendant is now paying the price for the malign role that his company played in the cryptocurrency ecosystem.”
As a result of these deficient know-your-customer (KYC) procedures, Bitzlato allegedly became a haven for criminal proceeds and funds intended for use in criminal activity. Bitzlato’s largest counterparty in cryptocurrency transactions was Hydra Market (Hydra), an anonymous, illicit online marketplace for narcotics, stolen financial information, fraudulent identification documents, and money laundering services that was the largest and longest running darknet market in the world. Hydra users exchanged more than $700 million in cryptocurrency with Bitzlato, either directly or through intermediaries, until Hydra was shuttered by U.S. and German law enforcement in April 2022. Bitzlato also received more than $15 million in ransomware proceeds.
“The FBI will continue to pursue actors who attempt to mask their criminal activity behind keyboards and use means such as cryptocurrency to evade law enforcement,” said Associate Deputy Director Brian Turner of the FBI. “We, along with our federal and international partners, will work relentlessly to disrupt and dismantle these types of criminal enterprises. Today’s arrest should serve as a reminder the FBI will impose risk and consequences upon those who engage in these activities.”
“As alleged today, Legkodymov knowingly allowed Bitzlato to become a perceived safe haven for funds used for and resulting from a variety of criminal activities,” said Assistant Director in Charge Michael J. Driscoll of the FBI New York Field Office. “The FBI and our partners remain steadfast in our commitment to keeping cryptocurrency markets – as with any financial market – free from illicit activity. Today’s action should serve as an example of this commitment as Legkodymov will now face the consequences of his actions in our criminal justice system.”
As alleged in the complaint, Bitzlato’s customers routinely used the company’s customer service portal to request support for transactions with Hydra, which Bitzlato often provided, and admitted in chats with Bitzlato personnel that they were trading under assumed identities. Moreover, Legkodymov and Bitzlato’s other managers were aware that Bitzlato’s accounts were rife with illicit activity and that many of its users were registered under others’ identities. For instance, on May 29, 2019, Legkodymov used Bitzlato’s internal chat system to write to a colleague that Bitzlato’s users were “known to be crooks,” using others’ identity documents to register their accounts. Legkodymov was repeatedly warned by colleagues that Bitzlato’s customer base consisted of “addicts who buy drugs at [] Hydra” and “drug traffickers,” with one senior executive even stressing that Bitzlato should combat drug dealers only “nominally,” to avoid hurting the company’s bottom line. An internal spreadsheet saved in Bitzlato’s shared management folder encapsulated the company’s view of itself: “Positives: No KYC. . . . Negatives: Dirty money. . . .”
As alleged in the complaint, although Bitzlato claimed not to accept users from the United States, it did substantial business with U.S.-based customers, and its customer service representatives repeatedly advised users that they could transfer funds from U.S. financial institutions. Moreover, Legkodymov – who himself administered Bitzlato from Miami in 2022 and 2023 – received reports reflecting substantial traffic to Bitzlato’s website from U.S.-based Internet Protocol addresses, including over 250 million such visits in July 2022.
Legkodymov is charged with conducting an unlicensed money transmitting business. If convicted, he faces a maximum penalty of five years in prison.
Concurrent with the arrest announced today, French authorities, working with Europol and partners in Spain, Portugal, and Cyprus, dismantled Bitzlato’s digital infrastructure, seized Bitzlato’s cryptocurrency, and took other enforcement actions.
In addition, the Treasury Department’s FinCEN announced an Order pursuant to section 9714(a) of the Combating Russian Money Laundering Act, as amended, identifying Bitzlato as a “primary money laundering concern” in connection to Russian illicit finance. The order imposes a special measure prohibiting certain transmittals of funds involving Bitzlato by any covered financial institution.
National Cryptocurrency Enforcement Team (NCET) Trial Attorneys Alexander Mindlin, Scott Meisler, and Matthew Blackwood of the Justice Department’s Criminal Division and Assistant U.S. Attorney Artie McConnell for the Eastern District of New York are prosecuting the case, with assistance from Paralegal Specialist Mary Clare McMahon.
The Justice Department investigated this case in close coordination with French law enforcement authorities and the Treasury Department’s FinCEN, both of which took separate enforcement actions today under their respective authorities. The Justice Department’s Office of International Affairs and the FBI’s Legal Attaché in France provided critical assistance in this case, with significant support from the department’s Cyber Operations International Liaison. The NCET and U.S. Attorney’s Office for the Eastern District of New York also extend their appreciation to the Cyber Division of the Paris Prosecution Office and to France’s Gendarmerie Nationale Cyberspace Command (Cyber Crime Investigation Unit / C3N). Assistance was also provided by the Customs and Border Protection, the Transportation Safety Administration, and the New York City Police Department. EUROPOL and Dutch and Belgian authorities have contributed to the overall investigation with respect to operational expertise, coordination, and information-sharing.
The NCET was established to combat the growing illicit use of cryptocurrencies and digital assets. Under the Criminal Division, the NCET conducts and supports investigations into individuals and entities that enable the use of digital assets to commit and facilitate a variety of crimes, with a particular focus on virtual currency exchanges, mixing and tumbling services, and infrastructure providers. The NCET also sets strategic priorities regarding digital asset technologies, identifies areas for increased investigative and prosecutorial focus, and leads the department’s efforts to collaborate with domestic and foreign government agencies as well as the private sector to aggressively investigate and prosecute crimes involving cryptocurrency and digital assets.
A criminal complaint is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Founder and Majority Owner of Bitzlato, a Cryptocurrency Exchange, Charged with Unlicensed Money TransmittingRead the Press Release
Defendant Wrote on Bitzlato’s Internal Chat Room That its Users Were “Known to be Crooks”
BROOKLYN, NY – A complaint was unsealed this morning in federal court in Brooklyn charging Anatoly Legkodymov, a Russian national and senior executive of Bitzlato Ltd. (Bitzlato), a Hong Kong-registered cryptocurrency exchange, with conducting a money transmitting business that transported and transmitted illicit funds and that failed to meet U.S. regulatory safeguards, including anti-money laundering requirements. Legkodymov was arrested last night in Miami and is scheduled to be arraigned this afternoon in the U.S. District Court for the Southern District of Florida. French authorities and the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) are taking concurrent enforcement actions.
Breon Peace, United States Attorney for the Eastern District of New York; Lisa O. Monaco, Deputy Attorney General for the Department of Justice; Kenneth A. Polite, Assistant Attorney General for the Department of Justice’s Criminal Division; Brian C. Turner, Associate Deputy Director, Federal Bureau of Investigation (FBI); and Michael J. Driscoll, Assistant Director-in-Charge, FBI, New York Field Office, announced the arrest and charge.
“Institutions that trade in cryptocurrency are not above the law and their owners are not beyond our reach,” stated U.S. Attorney Breon Peace. “As alleged, Bitzlato sold itself to criminals as a no-questions-asked cryptocurrency exchange, and reaped hundreds of millions of dollars’ worth of deposits as a result. The defendant is now paying the price for the malign role that his company played in the cryptocurrency ecosystem.”
“Today the Department of Justice dealt a significant blow to the cryptocrime ecosystem,” stated Deputy Attorney General Monaco. “Overnight, the Department worked with key partners here and abroad to disrupt Bitzlato, the China-based money laundering engine that fueled a high-tech axis of cryptocrime, and to arrest its founder, Russian national Anatoly Legkodymov. Today’s actions send the clear message: whether you break our laws from China or Europe—or abuse our financial system from a tropical island—you can expect to answer for your crimes inside a United States courtroom.”
“As alleged, the defendant helped operate a cryptocurrency exchange that failed to implement anti-money laundering safeguards and enabled criminals to profit from their wrongdoing, including ransomware and drug trafficking,” stated Assistant Attorney General Polite. “The National Cryptocurrency Enforcement Team’s tremendous efforts to disrupt Bitzlato and arrest the defendant demonstrate that we will continue to work with our partners – both foreign and domestic – to combat cryptocurrency-fueled crimes, even if they transcend international borders.”
“The FBI will continue to pursue actors who attempt to mask their criminal activity behind keyboards and use means such as cryptocurrency to evade law enforcement,” stated FBI Assistant Deputy Director Turner. “We, along with our federal and international partners, will work relentlessly to disrupt and dismantle these types of criminal enterprises. Today’s arrest should serve as a reminder the FBI will impose risk and consequences upon those who engage in these activities.”“As alleged today, Legkodymov knowingly allowed Bitzlato to become a perceived safe haven for funds used for and resulting from a variety of criminal activities. The FBI and our partners remain steadfast in our commitment to keeping cryptocurrency markets – as with any financial market – free from illicit activity. Today’s action should serve as an example of this commitment as Legkodymov will now face the consequences of his actions in our criminal justice system,” stated FBI Assistant Director-in-Charge Driscoll.
According to court documents, Legkodymov is a senior executive and the majority shareholder of Bitzlato Ltd. (Bitzlato), a Hong Kong-registered cryptocurrency exchange that operates globally. Bitzlato has marketed itself as requiring minimal identification from its users, specifying that “neither selfies nor passports [are] required.” On occasions when Bitzlato did direct users to submit identifying information, it repeatedly allowed them to provide information belonging to “straw man” registrants.
As a result of these deficient know-your-customer (KYC) procedures, Bitzlato allegedly became a haven for criminal proceeds and funds intended for use in criminal activity. Bitzlato’s largest counterparty in cryptocurrency transactions was Hydra Market, an anonymous, illicit online marketplace for narcotics, stolen financial information, fraudulent identification documents, and money laundering services that was the largest and longest running darknet market in the world. Hydra Market users exchanged more than $700 million in cryptocurrency with Bitzlato, either directly or through intermediaries, until Hydra Market was shuttered by U.S. and German law enforcement in April 2022. Bitzlato also received more than $15 million in ransomware proceeds.
As alleged in the complaint, Bitzlato’s customers routinely used the company’s customer service portal to request support for transactions with Hydra, which Bitzlato often provided, and admitted in chats with Bitzlato personnel that they were trading under assumed identities. Moreover, Legkodymov and Bitzlato’s other managers were aware that Bitzlato’s accounts were rife with illicit activity and that many of its users were registered under others’ identities. For instance, on May 29, 2019, Legkodymov used Bitzlato’s internal chat system to write to a colleague that Bitzlato’s users were “known to be crooks,” using others’ identity documents to register their accounts. Legkodymov was repeatedly warned by colleagues that Bitzlato’s customer base consisted of “addicts who buy drugs at [] Hydra” and “drug traffickers,” with one senior executive even stressing that Bitzlato should combat drug dealers only “nominally,” to avoid hurting the company’s bottom line. An internal spreadsheet saved in Bitzlato’s shared management folder encapsulated the company’s view of itself: “Positives: No KYC. . . . Negatives: Dirty money. . . .”
As alleged in the complaint, although Bitzlato claimed not to accept users from the United States, it did substantial business with U.S.-based customers, and its customer service representatives repeatedly advised users that they could transfer funds from U.S. financial institutions. Moreover, Legkodymov – who himself administered Bitzlato from Miami in 2022 and 2023 – received reports reflecting substantial traffic to Bitzlato's website from U.S.-based Internet Protocol addresses, including over 250 million such visits in July 2022.
The charge in the complaint is an allegation and the defendant is presumed innocent unless and until proven guilty. If convicted of operating an illegal money transmitting business, he faces a maximum penalty of five years in prison.
Concurrent with the arrest announced today, French authorities, working with Europol and partners in Spain, Portugal, and Cyprus, dismantled Bitzlato’s digital infrastructure and took enforcement actions.
The investigation is being jointly prosecuted by the National Security and Cybercrime Section of the United States Attorney’s Office for the Eastern District of New York and the National Cryptocurrency Enforcement Team (NCET). NCET Trial Attorneys Alexander Mindlin, Scott Meisler, and Matthew Blackwood of the Justice Department’s Criminal Division and Assistant U.S. Attorney Artie McConnell of the Eastern District of New York are prosecuting the case, with assistance from Paralegal Specialist Mary Clare McMahon.The Justice Department investigated this case in close coordination with French law enforcement authorities and the Treasury Department’s FinCEN, both of which took separate actions today under their respective authorities. The Justice Department’s Office of International Affairs and the FBI’s Legal Attaché in France provided critical assistance in this case, with significant support from the department’s Cyber Operations International Liaison.
The NCET and U.S. Attorney’s Office for the Eastern District of New York also extend their appreciation to the Cyber Division of the Paris Prosecution Office and to France’s Gendarmerie Nationale Cyberspace Command (Cyber Crime Investigation Unit / C3N). Assistance was also provided by the Customs and Border Protection, the Transportation Safety Administration, and the New York City Police Department. EUROPOL and Dutch and Belgian authorities have contributed to the overall investigation with respect to operational expertise, coordination, and information-sharing.
The NCET was created in October 2021 to combat the growing illicit use of cryptocurrencies and digital assets. Under the supervision of the Criminal Division, the NCET conducts and supports investigations into individuals and entities that enable the use of digital assets to commit and facilitate a variety of crimes, with a particular focus on virtual currency exchanges, mixing and tumbling services, and infrastructure providers. The NCET also sets strategic priorities regarding digital asset technologies, identifies areas for increased investigative and prosecutorial focus, and leads the department’s efforts to collaborate with domestic and foreign government agencies as well as the private sector to aggressively investigate and prosecute crimes involving cryptocurrency and digital assets.
The Defendant:
ANATOLY LEGKODYMOV (also known as “Anatolii Legkodymov”, “Gandalf”, and “Tolik”)
Age: 40
Residence: Shenzen, People’s Republic of China; RussiaE.D.N.Y. Docket No.: 23-MJ-17
Organizer of Home-Invasion Robbery Crew Sentenced to 96 Months in PrisonRead the Press Release
Defendant’s Co-Conspirators Sexually Assaulted One Victim Inside Her Home
Earlier today, at the federal courthouse in Brooklyn, Lamonte Johnson was sentenced by United States District Judge Raymond J. Dearie to 96 months’ imprisonment for conspiring to commit robbery and using force and threats in furtherance of robbery, in his role as lead organizer of a home-invasion crew. The sentence will run consecutive to Johnson’s two 20 years-to-life state prison sentences that he was already serving following his conviction for a 1986 double homicide. Johnson was convicted of the federal robbery charges following a one-week jury trial in May 2022. Johnson’s four co-conspirators previously pleaded guilty to related offenses.
Breon Peace, United States Attorney for the Eastern District of New York announced the sentence.
“Lamonte Johnson was not deterred by prison walls from organizing armed home-invasion robberies, but today’s sentence ensures he has been held accountable for these vicious crimes, and that there is justice for his victims,” stated United States Attorney Peace.
Mr. Peace thanked the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives and the New York City Police Department for their work leading the investigation.
As proven at trial and detailed in public filings, in March 2019 Johnson was serving consecutive 20 years-to life sentences for two murders in state prison when he organized a robbery crew with the goal of targeting Chinese American victims. Johnson connected his half-brother John Martin with Shi Zhen Lin, a former inmate who Johnson knew from prison. Lin’s role in the conspiracy was to identify Chinese American targets for the crew to rob. Martin recruited other members to join the crew and together they committed or attempted to commit multiple robberies in Queens, Long Island and New Jersey. In May 2019, Corey Mobley, Brandon Daniels, and Martin committed a home-invasion robbery in Little Neck, Queens. During the robbery, Mobley and Daniels held at gunpoint a group of women and children and sexually assaulted one of the victims.
Johnson’s co-conspirators have been sentenced to terms of imprisonment ranging from seven years, for Lin, to 19 years for Mobley.
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 handled by the Office’s Organized Crime and Gangs Section. Assistant United States Attorneys Jonathan Siegel and Michael W. Gibaldi are in charge of the prosecution, with assistance from Paralegal Specialist Brittany Wissel.
The Defendant:
Lamonte johnson
Age: 54
Auburn, New YorkDefendants Previously Sentenced
JOHN MARTIN (also known as “Lil John” and “LJ”)
Age: 50
Brooklyn, New YorkBRANDON DANIELS
Age: 28
Brooklyn, New YorkSHI ZHEN LIN (also known as “Kevin Lin” and “Kev”)
Age: 31
Maspeth, New YorkCOREY MOBLEY
Age: 52
Brooklyn, New YorkE.D.N.Y. Docket No. 19-CR-221 (S-3)
High-Ranking Hyena Crips Gang Member Charged with the Murder of 15-Year-Old Samuel Joseph in BrooklynRead the Press Release
An indictment was partially unsealed this afternoon in federal court in Brooklyn charging Martial H. Amilcar, also known as “Drippy,” and a co-defendant with the murder of 15-year-old Samuel Joseph. The indictment charges Amilcar, a senior member of the Hyena Crips gang, with killing Joseph in front of his teenage sister on February 22, 2019 as Joseph was leaving his apartment building near the Little Haiti section of Brooklyn. Amilcar was taken into federal custody earlier today, and is scheduled to be arraigned tomorrow before United States Magistrate Judge Taryn A. Merkl. If convicted of murder during and through the use of a firearm in relation to murder in-aid-of racketeering, Amilcar faces a potential sentence of life imprisonment or the death penalty.
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 arrest and charge.
“There is no crime more heinous than the killing of an innocent child. As alleged, Amilcar and his co-defendant brazenly murdered 15-year-old Samuel Joseph in retaliation for activities this young boy had nothing to do with,” stated United States Attorney Peace. “The brutal cycle of gang violence in this district, including the violence perpetrated by members of the Hyena Crips, must be stopped. We and our law enforcement partners are committed to that end. It is my hope that today’s indictment brings some measure of justice for the victim’s family.”
Mr. Peace expressed his appreciation to HSI’s Violent Gang Task Force and the New York City Police Department for their outstanding work in this investigation.
“While nothing can undo the pain that Martial Amilcar and his co-defendant allegedly inflicted upon the family of Samuel Joseph, it is my hope that by seeing him held accountable for his alleged crimes, they will be given some form of peace,” stated HSI Special Agent-in-Charge Arvelo. “HSI New York, along with our law enforcement partners, are dedicated to the eradication of gang violence in our communities, and we will continue to seek, apprehend, and hold accountable those who intend perpetuate such cruelty.”
As alleged in court documents, on February 22, 2019, Amilcar and a co-defendant drove to Samuel Joseph’s apartment building and waited outside until Joseph’s teenage sister arrived at the building’s entrance. While Joseph’s sister prepared to enter the building, Samuel Joseph was walking down an internal staircase towards the building’s exit. When Joseph’s sister opened the building door to enter, Amilcar walked into the building behind her, pulled out a gun and shot the 15-year-old boy three times at close range, killing him.
The shooting and events leading up to it were captured on security camera footage taken nearby.Amilcar and another individual allegedly killed Samuel Joseph in retaliation for an altercation earlier that day between Amilcar’s relative, a fellow gang member, and Joseph’s older brother, a rival gang member.
The charge in the indictment is an allegation and the defendant is presumed innocent unless and until proven guilty.
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 handled by the Office’s Organized Crime and Gangs Section. Assistant United States Attorneys Devon Lash, Andrew Wenzel, Jessica Weigel, and Joshua Dugan are in charge of the prosecution.
The Defendant:
MARTIAL H. AMILCAR (also known as “Drippy”)
Age: 26
Brooklyn, New YorkE.D.N.Y. Docket No. 23-CR-18 (PKC)
Statement of U.S. Attorney Breon Peace on Mccann et al.Read the Press Release
Hi, I’m United States Attorney for the Eastern District of New York Breon Peace. Thank you all for joining us today. With me today are: Keechant Sewell, Commissioner of the New York City Police Department, James W. Essig, Chief of Detectives of the New York City Police Department, Deputy Chief Joseph Gulotta, Commanding Officer of Detective Borough Brooklyn South, Captain Genienne King, Commanding Officer of Violent Crimes Squad, Detective Borough Brooklyn South, Captain Gary Marcus, Lieutenant Mohammed Islam, Detective Michael Griffith, of Detective Borough Brooklyn South Violent Crimes Squad, Frank Tarentino, III, Special Agent in Charge of the Drug Enforcement Administration, New York Division, and My U.S. Attorney’s Office team, Assistant United States Attorneys Adam Amir, Irisa Chen, James Simmons, and Francisco Navarro.
We are here today to announce the arrest and charging of four defendants, David Mccann, Tajhai Jones, Raymond Minaya, and Calvin Tabron for trafficking over 50 firearms, fentanyl, and crack cocaine in the Canarsie neighborhood of Brooklyn. This is one of the first prosecutions in the nation—and the first unsealed indictment in New York—under the Bipartisan Safer Communities Act, the first federal statute specifically designed to target gun trafficking, which was enacted by Congress in June 2022. The charges brought today exemplify how the Bipartisan Safer Communities Act can be used as an effective tool in our continued battle against gun violence that plagues communities in Brooklyn, across New York City and Long Island, and across the nation.
These charges and the arrest made today are the culmination of a significant investigation into firearms and narcotics trafficking occurring largely in and near the Breukelen Houses public housing complex in Canarsie. The defendants sold an NYPD undercover officer over 50 guns. The defendants, of course, did not believe they were selling guns to a law enforcement officer. They thought they were selling these guns to a drug dealer. The undercover officer told the defendants that he was a drug dealer who needed guns and that he was also going to resell some of the guns. Despite this knowledge, Mccann and others continued to sell large quantities of drugs and guns to the undercover officer without hesitation.
Some of the firearms were made from “ghost gun” kits. Certain of the guns sold had a defaced serial number, which makes it more difficult for law enforcement to trace them. Several of the guns trafficked by the defendants have been linked by law enforcement to prior violence in Brooklyn. For example, one defendant, Minaya, sold the undercover officer a gun that was used in an August 21, 2021 shooting in Bedford-Stuyvesant during which armed perpetrators shot into a large crowd gathered for a family day celebration. In total, eight people were shot. Another gun sold by Minaya to the undercover officer is linked to a December 18, 2021 shooting of an individual in Canarsie, in the blocks surrounding the Breukelen Houses complex. That individual sustained multiple gunshot wounds to his body, including his right hand, shoulder, neck, and the base of his skull.
The investigation revealed that defendant Tabron would often purchase three or four guns at a time from retailers in Virginia Beach and Lynnhaven, Virginia, for the express purpose of bringing them to Brooklyn to engage in sales set up by his co-defendants.
While engaging in the gun trafficking conspiracy, Mccann and co-conspirators also sold more than a kilogram of fentanyl to the undercover officer. Mccann and Minaya also engaged in a narcotics conspiracy that sold over 100 grams of crack cocaine to the undercover officer.
The defendants’ drug and gun deals occurred primarily in vehicles outside homes in Canarsie. Almost all the deals occurred in the middle of the afternoon and in broad daylight, with the dealers sometimes boldly walking down public streets carrying bags of dangerous guns past residents. And, many of these transactions took place during the day in the summer months at the Canarsie Pier—a popular recreational area where scores of Brooklyn families picnic and play with their children at the playground.
The evidence of the defendants’ involvement in the alleged conduct includes (1) video and audio recordings made by the undercover officer during gun and drug sales with the defendants; (2) text and telephone records; (3) surveillance, GPS and social media showing the defendants’ whereabouts at particular times; and (4) physical evidence, including firearms, ammunition and drugs.
Additionally, when agents arrested one of the defendants in Brooklyn this morning, he was in illegal possession of two handguns, including one with an extended magazine. The defendant threw one of the guns out a window in an attempt to hide it. But agents recovered both guns at the scene.
By charging the defendants today, our Office and law enforcement partners have interrupted a network of firearms traffickers that endangers our community. Prosecutions of gun trafficking prior to the enactment of the Bipartisan Safer Communities Act relied on statutes concerning unlicensed sale, transport and delivery of firearms, and false statements made to acquire firearms. By using the new law in the charges today, we are able to streamline these prosecutions by charging firearm trafficking conspiracy as a standalone federal crime. This charge also comes with increased penalties should the defendants be proven guilty.
As the first prosecution to utilize this new legislation in New York, and one of the first in the country, we are demonstrating that we are prepared to use all the tools at our disposal—new and old—to combat gun violence. Reducing gun violence will always be one of the foremost priorities of this Office.
I’d like to give special thanks to the NYPD and the officers on this case – especially the undercover officer, who displayed extreme bravery by repeatedly engaging with the defendants to take over 50 guns off the street, and to the DEA and Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), for their work on this case. I’d also like to thank the team from my Office who have worked tirelessly to protect our community.
I’ll now turn it over to NYPD Commissioner Sewell.
Four Gun Traffickers Charged with Selling over 50 Firearms in BrooklynRead the Press Release
Prosecution Is First In New York To Publicly Charge the Gun Trafficking Provisions of The Bipartisan Safer Communities Act
Earlier today, at the federal courthouse in Brooklyn, a seven-count indictment was unsealed charging David Mccann, Tajhai Jones, Raymond Minaya, and Calvin Tabron with allegedly conspiring to illegally traffic more than 50 firearms. Mccann and Minaya are also charged with conspiracy to distribute and possess with intent to distribute cocaine base; Mccann is additionally charged with conspiracy to distribute and possess with intent to distribute fentanyl. Mccann, Jones, Minaya, and Tabron were arrested this morning. Mccann and Minaya are scheduled to be arraigned this afternoon before United States Magistrate Judge Taryn A. Merkl. Jones and Tabron will be arraigned in Virginia.
Breon Peace, United States Attorney for the Eastern District of New York, Keechant L. Sewell, Commissioner, New York City Police Department (NYPD) and Frank A. Tarentino, III, Special Agent in Charge, Drug Enforcement Administration (DEA), New York Division announced the charges.
“As alleged, the defendants are responsible for attempting to flood the streets of Brooklyn with over 50 deadly weapons, including ghost guns, as well as narcotics, feeding the cycles of gun violence and drug abuse,” stated United States Attorney Peace. “As the first prosecution utilizing new federal legislation in New York, and one of the first in the country, these arrests demonstrate this Office’s commitment to utilize all tools available to more effectively stop gun traffickers from endangering our community.”
DEA Special Agent in Charge Frank Tarentino said: “This groundbreaking legislation is intended to address the sobering reality of the link between guns and drugs; the two biggest public safety threats in New York. DEA New York and our law enforcement partners are aggressively taking every step to protect communities from gun violence and drug trafficking in order to save lives. I commend the NYPD, ATF and the U.S. Attorney’s Office for the Eastern District of New York on their diligent efforts and collaboration throughout this investigation.”
“This case, initiated in direct response to complaints from the New Yorkers we serve, underscores some disturbing truths,” stated NYPD Commissioner Keechant L. Sewell. “First, that illegal guns proliferate and circulate in many neighborhoods that still need our help. And second, that every day the women and men of the New York City Police Department perform incredibly dangerous work to prevent these firearms from getting into criminals’ hands. I commend and thank the NYPD undercover officer who so successfully worked this long-term investigation, all of the detectives with our Violent Crimes Squad, and our invaluable partners at the ATF, the DEA, and the U.S. Attorney’s Office for the Eastern District of New York for their critical work in helping to get these guns – and these gun traffickers – off our streets.”
As alleged in the indictment and court documents, the defendants engaged in multiple transactions involving the sale of at least 50 illegal firearms in Brooklyn between January 2022 and August 2022. The defendants sold these firearms in broad daylight from vehicles in and around New York City Housing Authority’s Breukelen Houses, which are located across the street from a church and blocks away from a preschool and grade school in Canarsie, Brooklyn. The defendants would often carry the guns they trafficked in whatever they could find, including gloves and shopping bags.
Two members of the gun-trafficking operation obtained the firearms in Virginia and then transported them to New York to be sold on the streets of Brooklyn. Some of the firearms had defaced serial numbers or were made from ghost gun kits, making them harder for law enforcement to trace. Two defendants also engaged in significant narcotics trafficking conspiracies, including a fentanyl distribution conspiracy that introduced thousands of lethal doses of fentanyl into our community.
The defendants sold the guns and drugs to an undercover officer who recorded many of the transactions. The undercover officer told the defendants that he was a drug dealer who needed guns and that he was also going to resell some of the guns that were provided to him. Despite this knowledge, the conspirators continued to sell large quantities of drugs and guns to the undercover officer without hesitation.
Firearms sold in the conspiracy have also been linked to several shootings in Brooklyn. For example, on June 22, 2022, Minaya sold an undercover officer a Glock 30, .45 caliber handgun. The investigation revealed that this gun was used in an August 16, 2021 shooting in Bedford-Stuyvesant, during which armed perpetrators shot into a large crowd gathered for a family day celebration. In total, eight individuals were struck by gunfire. Another gun trafficked by the conspirators—a Glock 43, 9-millimeter caliber handgun—is linked to a December 18, 2021 shooting of an individual in Canarsie, in the blocks surrounding the Breukelen Houses complex. That individual sustained multiple gunshot wounds to his body, including his right hand, shoulder, neck, and the base of his skull.
When agents arrested Minaya in Brooklyn this morning, he was in illegal possession of two handguns, including one with an extended magazine. The defendant threw one of the guns out a window in an attempt to hide it; both guns were recovered.
This prosecution is the first in New York, and among the first in the country, to charge the gun trafficking provisions of the Bipartisan Safer Communities Act, which Congress and the President enacted in June 2022. The Act is the first federal statute specifically designed to target gun trafficking. Among other provisions, it creates a standalone firearm trafficking conspiracy offense, which the government has charged in this case to hold accountable those who conspire to illegally sell firearms. The Act provides for sentences of up to 15 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 International Narcotics and Money Laundering and General Crimes sections. Assistant United States Attorneys Adam Amir, Irisa Chen, and James Simmons are in charge of the prosecution with assistance from Paralegal Specialist Abiodun Ojo. The joint investigation was conducted by the Detective Borough Brooklyn South Violent Crimes Squad, under the supervision of Captain Genienne King and Deputy Chief Joseph Gulotta, who is the Commanding Officer of Detective Borough Brooklyn South, and under the overall supervision of NYPD Chief of Detectives James W. Essig.
The Defendants:
David Mccann
Age: 28
Brooklyn, New YorkTajhai Jones
Age: 28
Portsmouth, VirginiaRaymond Minaya
Age: 26
Brooklyn, New YorkCalvin Tabron
Age: 25
Virginia Beach, VirginiaE.D.N.Y. Docket No. 23-CR-8
Former Executive Director of Long Island Charity Sentenced to over Two Years in Prison for EmbezzlementRead the Press Release
Earlier today, at the federal courthouse in Brooklyn, Senior United States District Judge Edward R. Korman sentenced Wafa Abboud to a term of imprisonment of 33 months. As part of the sentence, Judge Korman also ordered Abboud to forfeit $836,000 and pay $1,415,000 in restitution to Human First, Inc. (Human First), the nonprofit agency that Abboud led for more than five years. Abboud was convicted following a two-week jury trial in July 2019 of theft from programs receiving federal funds, bank fraud, and conspiracies to commit those crimes.
Breon Peace, United States Attorney for the Eastern District of New York, announced the sentence.
“Stealing taxpayer money earmarked for developmentally disabled youth to pay for vacations, cosmetic surgery, and luxurious vacations is shameful,” stated United States Attorney Peace. “Today, the defendant has been held accountable for betraying the most vulnerable among us whom she was entrusted to serve and treating the non-profit organization bank accounts as though they were her own.”
Mr. Peace thanked the Federal Bureau of Investigation, New York Field Office, for its investigative work on the case.From January 2011 until her termination on May 27, 2016, Abboud was the Executive Director of Human First, a non-profit corporation that provided services to individuals with autism and other developmental disabilities. In that capacity, Abboud exercised nearly complete control over the charity’s finances. During Abboud’s tenure, Human First received tens of millions of dollars annually from the New York State Office for People with Development Disabilities, which is funded in significant part by the Medicaid program. The money was disbursed to Human First to support its mission of providing residential, rehabilitative, and other services to developmentally disabled youth.
Abboud entered into an agreement with co-defendant Marcelle Bailey whereby Abboud caused Human First to pay Bailey’s company MPB Management Services LLC (MPB) approximately $16,000 per month in purported “consulting” fees. Bailey deposited approximately half of each monthly disbursement into bank accounts that were controlled by Abboud, who used the money to fund a lavish lifestyle, including expensive international vacations, visits to luxury spas and high-end beauty salons and restaurants, and elective cosmetic surgeries. Abboud also withdrew approximately $120,000 from the accounts in cash and wired tens of thousands of dollars in the account overseas. In total, Abboud stole approximately $420,000 between May 2011 and February 2016 through the MPB embezzlement scheme.
Abboud also conspired with co-defendant Rami Taha to steal over $400,000 through a scheme in which Abboud deliberately issued overpayments to contractors performing work on Human First properties with the knowledge that the overpayment would be kicked back to her. The overpayments were disguised through the use of inflated invoices submitted to Human First, and the payments to Abboud were hidden by transferring the funds through a number of sham bank accounts before ultimately depositing them into accounts controlled by Abboud. Abboud used the stolen money to finance the down payment and renovation of her residence. To conceal the true source of the funds, Abboud lied to her mortgage lender, falsely claiming that the funds were a settlement payment she had received for damage caused to her previous home.
Bailey pleaded guilty to embezzlement and bank fraud in December 2017 and was sentenced by Judge Korman in August 2021 to 33 months in prison. Taha pleaded guilty in May 2019 to embezzlement. A fourth defendant, Arkadiusz Swiechowicz, pleaded guilty to obstruction of justice in September 2018. Taha and Swiechowicz are awaiting sentencing.
The government’s case is being handled by the Office’s Public Integrity Section. Assistant United States Attorneys Robert Polemeni and Turner Buford are in charge of the prosecution. Assistant United States Attorney Tanisha Payne of the Office’s Asset Recovery Section is handling forfeiture matters in the case.
The Defendant:
WAFA ABBOUD
Age: 55
Merrick, NY
E.D.N.Y. Docket No. 16-CR-396 (ERK)Defendant Extradited to the United States from Mexico to Face Sex Trafficking ChargesRead the Press Release
Leonardo Jimenez-Rodriguez was extradited to the United States yesterday and is scheduled to be arraigned today before United States Magistrate Judge Ramon E. Reyes, Jr., at the federal courthouse in Brooklyn on a six-count indictment charging him with sex trafficking conspiracy, sex trafficking, interstate prostitution, alien smuggling and related offenses. The defendant was arrested in May 2022 in Mexico following a joint investigation by Homeland Security Investigations (HSI) Mexico City, HSI New York and the Mexican Federal Police.
The defendant is charged in a superseding indictment together with his brother and co-defendant, Marcos Jimenez-Rodriguez, who was previously arrested in the United States. The defendant’s sister, Melisa Jimenez-Rodriguez, was also previously arrested in the United States and is awaiting sentencing on the charge of distributing proceeds of a prostitution business.
The extradition and charges were announced by Breon Peace, United States Attorney for the Eastern District of New York, and Ivan J. Arvelo, Special Agent-in-Charge, HSI New York.
“As alleged, using false promises of love and support, the defendant and his siblings brutally sex trafficked women between Mexico and the United States for over two decades,” stated United States Attorney Peace. “Stopping human trafficking and ensuring that traffickers face justice for the crimes against their victims remain priorities of this Office and our law enforcement partners.”
Mr. Peace commended HSI New York’s Trafficking in Persons Unit for leading the investigation of the Jimenez-Rodriguez Sex Trafficking Organization; thanked the HSI Mexico City Attaché Office, the Department of Justice’s Office of International Affairs, the State Department, Interpol, International Affairs Department of the Attorney General’s Office in Mexico, the Law Enforcement Unit of the State of Tlaxcala Attorney General’s Office, Interpol Mexico, and the New York City Police Department (NYPD) for their assistance; and praised the government of Mexico for its role in advancing bilateral anti-trafficking enforcement efforts. Mr. Peace also acknowledged the non-governmental victim service providers and advocates for their dedicated efforts to restore and improve the lives of survivors of trafficking and their families.
“Yesterday’s extradition is the result of years of extraordinary collaboration between law enforcement agencies spanning multiple countries and investigative jurisdictions. Leonardo Jimenez-Rodriguez is alleged to have been a part of his family’s transnational human trafficking organization which offered the chance at a better life to young women and girls before cruelly ensnaring them in forced sex work with no way to return home,” stated HSI Special Agent-in-Charge Arvelo. “HSI is grateful to our colleagues with the HSI Mexico City Attaché Office and to our many partners in the United States and the Government of Mexico whose collaboration and teamwork make investigations like this possible.”
As alleged in the superseding indictment and other court filings, between 1997 and May 2018, Leonardo Jimenez-Rodriguez was a member of a family organization based in New York and Tenancingo, Mexico, that used force, fraud and coercion to cause young women in Mexico to engage in prostitution in the United States (the “Jimenez-Rodriguez Trafficking Organization”). Leonardo Jimenez-Rodriguez, together with other relatives, lured victims into romantic relationships through false promises of love and support and pressured the victims to travel to the United States with promises of a better life. After Leonardo Jimenez-Rodriguez and other members of the Jimenez-Rodriguez Trafficking Organization illegally smuggled young women from Mexico into the United States, they employed brutal physical beatings, intimidation, psychological abuse, and threats to force or attempt to force the women to work as prostitutes in New York City and elsewhere. The defendant is also charged with distributing the illicit proceeds of the sex-trafficking and prostitution enterprise.
The charges in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty. If convicted of the sex-trafficking related charges, the defendant faces a mandatory minimum sentence of 15 years’ incarceration and a maximum sentence of life in prison.
The investigation, prosecution, bilateral enforcement action and extradition of the defendants apprehended in Mexico were coordinated through the U.S.-Mexico Bilateral Human Trafficking Enforcement Initiative. Since 2009, the Departments of Justice and Homeland Security have collaborated with Mexican law enforcement counterparts in a Bilateral Human Trafficking Enforcement Initiative to more effectively dismantle human trafficking networks operating across the U.S.-Mexico border, bring human traffickers to justice, restore the rights and dignity of human trafficking victims and reunite victims with their children. These efforts have resulted in successful prosecutions in both Mexico and the United States, including U.S. federal prosecutions of over 175 defendants in multiple cases in Georgia, New York, Florida and Texas, in addition to numerous Mexican federal and state prosecutions of associated sex traffickers. The extradition in this case is also the latest development in the Eastern District of New York’s comprehensive anti-trafficking program, which has to date indicted more than 100 defendants for sex trafficking; assisted nearly 200 victims, including over 50 minors, reunited 19 victims’ children with their mothers, and secured restitution orders of over $4 million on behalf of trafficking victims.
The government’s case is being handled by the Office’s Civil Rights Unit. Assistant United States Attorneys Erin M. Reid, Gillian Kassner, Tara B. McGrath, and Lauren Bowman are in charge of the prosecution, with assistance from Paralegal Specialist Ryan Costley.
The New Defendant:
LEONARDO JIMENEZ-RODRIGUEZ
Age: 39
MexicoDefendant Previously Arrested:
MARCOS JIMENEZ-RODRIGUEZ
Age: 46
Queens, New YorkMELISA JIMENEZ-RODRIGUEZ
Age: 41
Queens, New YorkE.D.N.Y. Docket No. 21-CR-11 (S-1) (EK)
Former Registered Broker Sentenced to 5 Years' Imprisonment for Conspiring with Long Island Boiler Room to Pump and Dump Stock on Unsuspecting Elderly InvestorsRead the Press Release
Earlier today, in federal court in Central Islip, Lawrence Isen, a former registered broker who participated in a criminal conspiracy to promote and manipulate the price of shares in publicly traded companies, was sentenced by United States District Judge Joanna Seybert to 5 years’ imprisonment for conspiracy to commit securities fraud, securities fraud, conspiracy to commit wire fraud, money laundering conspiracy, and money laundering. The Court also ordered Isen to pay over $8 million in restitution and over $700,000 in forfeiture. Isen and co-defendant Jeffrey Chartier were convicted of the charges by a federal jury in March 2020 following a six-week trial. Chartier was sentenced in December 2022.
Breon Peace, United States Attorney for the Eastern District of New York, and Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation (FBI), New York Field Office, announced the sentence.
“Lawrence Isen and his co-conspirators used their skills to steal precious savings from elderly, hard-working people all over the country,” stated United States Attorney Peace. “Today’s sentence should serve as yet another reminder to fraudsters who prey on the vulnerable that this Office will hold them accountable for the damage they cause to the security and well-being of so many.”
Mr. Peace also thanked the Federal Bureau of Investigation, New York Field Office, for its hard work and dedication in leading the investigation, and expressed his appreciation to the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority, Inc., Criminal Prosecution Assistance Group (FINRA CPAG), for their cooperation and assistance.
From 2014 to 2016, Isen, Chartier and others working with a Melville, New York-based boiler room artificially inflated the price and trading volume of stock in struggling companies with poor prospects, and off-loaded it onto unsuspecting victims who were often elderly and vulnerable.
The evidence at trial showed that Isen colluded with crooked investors, both in the United States and overseas, to dump large volumes of shares in Hydrocarb Energy Corp., trading under the ticker symbol HECC, and Intelligent Content Enterprises, Inc., trading under the ticker symbol ICEIF, on the victims. Isen, who was barred from acting as a broker by FINRA in 1996 and convicted of wire fraud conspiracy and obstruction of justice in the Southern District of New York in 2000, orchestrated the manipulation of stock belonging to, among others, major HECC shareholder Michael Watts and major ICEIF shareholders located in India. He did so by, among other things, connecting the investors with the boiler room; negotiating the terms of the arrangements between them; and managing the relationships between them. Isen assisted the boiler room in its illegal cold call campaigns that used lies and high-pressure sales tactics to lure victims, by, among other things, transferring money and stock required by the boiler room for the campaigns; working with the boiler room to fill the duped victims’ orders with Isen’s crooked investors’ stock; and creating fraudulent stock purchase agreements, consulting agreements and invoices to cover up the illegal conduct.
The government has calculated that the conspiracy’s market manipulation fraudulently inflated the stock price of HECC, ICIEF and three other companies by more than $147 million. All 16 defendants charged in this case have been convicted.
Assistant United States Attorneys Whitman G.S. Knapp and Kaitlin T. Farrell are in charge of the prosecution with assistance from Paralegal Specialist Peyton Jefferson. Assistant United States Attorney Tanisha Payne of the Office’s Asset Recovery Section is handling forfeiture matters in the case.
The Defendant:
LAWRENCE ISEN
Age: 69
San Diego, CaliforniaDefendant Previously Sentenced:
JEFFREY CHARTIER
Age: 59
Sunny Isles, FloridaDocket No. 17-CR-372 (JS)
Five Narcotics Traffickers Extradited from Curaçao to Face International Cocaine Distribution and Importation ChargesRead the Press Release
Later today, Jo-Andy Christepher Marie Balentina, Joell Charles Marie Balentina, Sheriann Ann Marie Bryan, Leon George Hall, and Edlyson Reuel Elias Sophia will be arraigned at the federal courthouse in Brooklyn on international cocaine distribution conspiracy and related cocaine importation charges. Jo-Andy Balentina is also charged with money laundering conspiracy for his role in laundering the proceeds of cocaine sales generated by the trafficking.
The defendants were extradited from Curacao on January 5, 2023. The United States submitted requests for their provisional arrests based on the warrants issued in the Eastern District of New York. A sixth defendant, Israel Osial Barrett, also known as “English,” was arrested in the United Kingdom on a provisional arrest warrant and the government is currently seeking his extradition.
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 extraditions and arraignments.
“The defendants operated an international drug trafficking enterprise that for years funneled over one hundred kilograms of cocaine into the United States onboard cruise ships and commercial airliners, using an extensive network of corrupt airport employees,” stated United States Attorney Peace. “This Office and our law enforcement partners will continue to identify, investigate and prosecute narcotrafficking organizations that not only flood our streets with dangerous drugs, but also corrupt and compromise airport security.”
Mr. Peace extended his appreciation to the United States Drug Enforcement Administration, the United States Marshals Service, the Department of Justice’s Office of International Affairs, and the United States Department of State for their assistance, as well as to law enforcement authorities in Curaçao including the Curaçao Openbaar Ministerie (Public Prosecutor’s Office) and Korps Politie Curaçao (Police Force) who provided significant cooperation.
“As alleged, these individuals have created and led an elaborate network of traffickers and collaborators who used their access to secure areas at airports and on cruise ships to move massive amounts of cocaine into the United States. Today’s arraignments move us one step closer to the dismantlement of this criminal organization responsible for flooding our streets with cocaine while lining their pockets with the proceeds,” stated HSI Special Agent-in-Charge Arvelo. “HSI, along with our partners, is committed to leveraging our international footprint and customs law authorities to disrupt the flow of dangerous drugs into our communities and dismantling the drug trafficking organizations who peddle in this poison.”
As set forth in the indictment, court filings and statements made in Court, the defendants are all leaders, members or associates of a Curaçao-based drug trafficking organization (the Curaçao DTO) responsible for importing large shipments of cocaine into the United States, and laundering illicit funds derived from their narcotrafficking activities and sales in the United States back into Curaçao. The defendants and the Curaçao DTO transported cocaine from Curaçao to the United States by various methods, including commercial airliners and cruise ships.
Since at least early 2017, Jo-Andy Balentina was the principal leader of the Curaçao DTO. Organization members including Bryan, Hall and Sophia, were responsible for recruiting, training and managing other individuals as couriers to transport and accompany cocaine shipments on the commercial aircraft and cruise ships. The Curaçao DTO also utilized corrupt airport employees at Curaçao/Hato International Airport in Curaçao, specifically Joell Balentina, and at John F. Kennedy International Airport in Queens to exploit their security clearances and to facilitate the loading and unloading of cocaine shipments and bulk cash on commercial aircraft and bypass airport security and customs. As a result of the investigation, law enforcement authorities identified or intercepted multiple large-scale shipments of cocaine coming into the United States.
Once the cocaine arrived in the United States, it was smuggled out of the airport or seaport and sold by or on behalf of the Curaçao DTO either directly, or through established distribution networks. In turn, the proceeds were laundered from the United States back to Jo-Andy Balentina and the Curaçao DTO. As a result of this investigation, federal authorities have dismantled the United States-based network of corrupt airport employees and thwarted the planned importation of an additional 300 kilograms of cocaine to be supplied by the Curaçao DTO.
The charges in the indictment are allegations, and the defendants are presumed innocent unless and until proven guilty. If convicted, the defendants face up to life in prison.
The government’s case is being handled by the Office’s International Narcotics and Money Laundering Section. Assistant United States Attorneys Jonathan P. Lax, Andrew D. Grubin and Robert M. Pollack are in charge of the prosecution. Assistant United States Attorney Brendan G. King of the Office’s Asset Recovery Section is handling forfeiture matters in the case. The Department of Justice’s Office of International Affairs provided substantial assistance in securing the arrests and extraditions of the defendants.
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 Defendants Being Arraigned Today:
JO-ANDY CHRISTEPHER MARIE BALENTINA (also known as “Enchi,” “Angie” and “Benzy”)
Age: 36
CuraçaoJOELL CHARLES MARIE BALENTINA
Age: 39
CuraçaoSHERIANN ANN MARIE BRYAN (also known as “Sheryl” and “Sharon”)
Age: 39
CuraçaoLEON GEORGE HALL (also known as “Bunny”)
Age: 53
CuraçaoEDLYSON REUEL ELIAS SOPHIA (also known as “Primu”)
Age: 36
CuraçaoThe Defendant Awaiting Extradition:
ISRAEL OSIAL BARRETT (also known as “English”)
Age: 51
Birmingham, United KingdomE.D.N.Y. Docket No. 21-CR-222 (ARR)
Ex-Correction Officer Charged with Accepting Bribes to Smuggle Contraband into Rikers Island JailRead the Press Release
An indictment was unsealed today in federal court in Brooklyn, New York, charging Karin Robinson, a former correction officer employed by the New York City Department of Correction (DOC), with conspiracy to violate the Travel Act and conspiracy to distribute controlled substances to an inmate incarcerated at the George R. Vierno Center at Rikers Island (GRVC) between February and June 2019. The initial appearance of the defendant is scheduled for this afternoon before United States Magistrate Judge James R. Cho.
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.
“The corruption of correction officers undermines the orderly running of the institution and endangers the safety of other incarcerated individuals and Department of Correction personnel,” stated United States Attorney Peace. “We will continue to prosecute those who enrich themselves instead of serving the public and work with our federal and local law enforcement partners to stop the flow of illegal narcotics and other contraband into correctional facilities.”
Mr. Peace thanked the New York City Department of Investigation for their outstanding investigative work on the case.
“As alleged in this indictment, Robinson broke her oath of duty as a correction officer when she agreed to accept bribes and smuggle contraband into the prison system. The FBI and our law enforcement partners will continue to pursue those who betray the public trust by abusing their authority and bring them to justice as swiftly as possible,” stated FBI Assistant Director-in-Charge Driscoll.
As set forth in the indictment and other court filings, the defendant was a New York City DOC employee in 2019. Between February and June of 2019, she received thousands of dollars in bribes from a GRVC inmate. In exchange for the bribe payments, the defendant agreed to bring marijuana and other contraband into the GRVC for sale and distribution to other inmates.
The charges in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty. If convicted, Robinson faces a maximum jail time of 10 years.
The government’s case is being handled by the Office’s Public Integrity Section. Assistant United States Attorneys Laura Zuckerwise, Joy Lurinsky, and Andrew D. Reich are in charge of the prosecution with the assistance of Paralegal Specialist Rachel Friedman.
The Defendant:
KARIN ROBINSON
Age: 29
Queens, New YorkE.D.N.Y. Docket No. 22-CR-555 (AMD)
Non-Fungible Token (NFT) Developer Charged in Multi-Million Dollar International Fraud SchemeRead the Press Release
A criminal complaint was unsealed today in federal court in Brooklyn charging Aurelien Michel, a French national residing in the United Arab Emirates (UAE), with defrauding purchasers of “Mutant Ape Planet” NFTs, a type of digital asset, of more than $2.9 million in cryptocurrency. The defendant was arrested last night at John F. Kennedy International Airport. His initial appearance is scheduled for this afternoon before United States Magistrate Judge James R. Cho.
As part of the scheme, NFTs were marketed to purchasers, who were falsely promised numerous rewards and benefits designed to increase demand for, and the value of, their newly acquired NFTs. After selling out of the NFTs, the purchasers were “rug pulled” – a cryptocurrency scam in which a developer attracts investors, but pulls out before the project is complete, leaving buyers with a worthless asset – as none of the promised benefits were provided. Instead, millions worth of the NFT purchasers’ cryptocurrency was diverted for Michel’s personal benefit.
Breon Peace, United States Attorney for the Eastern District of New York, Ivan J. Arvelo, Special Agent-in-Charge, Homeland Security Investigations (HSI), New York and Thomas Fattorusso, Acting Special Agent-in-Charge, Internal Revenue Service-Criminal Investigation, New York (IRS-CI), announced the charges.
“As alleged, the defendant used a traditional criminal scheme to defraud consumers eager to participate in a new digital asset market,” stated United States Attorney Peace. “Protection from fraud and manipulation extends to all consumers and investors, including those participating in the fast-evolving market for NFTs and other crypto assets. Our Office is committed to bringing to justice any criminal actor abusing any markets for their own gain.”
“As alleged, Aurelien Michel perpetrated a ‘rug pull’ scheme - stealing nearly $3 million from investors for his own personal use. Purchasers of Mutant Ape Planet NFTs thought they were investing in a trendy new collectible, but they were deceived and received none of the promised benefits,” said Ivan J. Arvelo, Special Agent in Charge of Homeland Security Investigations (HSI) in New York. “HSI uses our extensive experience investigating financial crime in conjunction with our cutting edge cyber capabilities to uncover fraud and bring the perpetrators to justice.”
“It’s alleged that Michel defrauded investors by making false representations of, amongst other things, giveaways, tokens with staking features, and merchandise collections. Once the NFTs were sold-out, Michel allegedly ceased communications and withdrew purchasers’ funds from the company’s cryptocurrency wallets, lining his pockets with nearly $3 Million of investors’ money,” stated IRS-CI Fattorusso. “Michel can no longer blame the NFT community for his criminal behavior. His arrest means he will now face the consequences of his own actions.”
As alleged in the criminal complaint, Mutant Ape Planet NFTs were a digital asset stored on the Ethereum blockchain. As an NFT, each Mutant Ape Planet NFT was unique, freely transferrable, and gave purchasers exclusive ownership over each NFT. The NFTs were marketed with promises of exclusive benefits potential purchasers would receive. Those benefits included exclusive opportunities for additional investments, giveaways, merchandise, and other rewards. However, after sending their cryptocurrency and obtaining the NFT, purchasers received nothing while their cryptocurrency was diverted from the Mutant Ape Planet NFT project to cryptocurrency wallets controlled by the defendant Aurelien Michel. In total, more than $2.9 million in purchasers’ cryptocurrency was diverted as part of the Michel’s scheme.
As alleged, in a social media chat with current and prospective purchasers, Michel admitted to the fraudulent “rug pull,” but blamed the community of NFT purchasers for his actions, stating, “We never intended to rug but the community went way too toxic.”
The charges in the complaint are merely allegations, and the defendant is presumed innocent unless and until proven guilty.
The government’s case is being prosecuted by Assistant United States Attorneys Drew Rolle and Dylan Stern of the Office’s Business and Securities Fraud Section with assistance from Paralegal Specialist William Daniels.
If you believe that you have been a victim of this crime, please call the HSI Tip Line at 1-866-347-2423.
The Defendant:
AURELIEN MICHEL
Age: 24
Dubai, United Arab EmiratesE.D.N.Y. Docket No. 23-MJ-7
Long Island Medical Doctor Sentenced to 30 Months in Prison for Medicare Billing Fraud SchemeRead the Press Release
Earlier today, in federal court in Central Islip, Morris Barnard, a gastroenterologist practicing in Great Neck, New York, was sentenced by United States District Judge Gary R. Brown to 30 months in prison for health care fraud. Barnard pleaded guilty to the charge in March 2022. The Court also ordered over $1.4 million in restitution to Medicare.
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) and Susan A. Frisco , Acting Special Agent-in-Charge, U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG), announced the sentence.
“Today, Dr. Barnard learned the consequences for his greed-driven scheme in which he took advantage of patients who are disabled and living in residential group homes by falsely billing Medicare for medical procedures on them that he never actually performed,” stated United States Attorney Peace. “The defendant was not entitled to one penny of the $1.4 million in precious public health care funds that he pocketed and will now have to pay back as part of his sentence.”
“As the defendant learned today, defrauding Medicare does not pay - it has consequences. The FBI is committed to eradicating all fraud and schemes that abuse government-sponsored health care programs,” stated FBI Assistant Director-in-Charge Driscoll.
“Health care professionals who fraudulently bill Medicare for services never actually provided divert taxpayer funding meant to pay for medically necessary services for people enrolled in Medicare,” stated Acting Special Agent in Charge Susan A. Frisco of HHS-OIG. “OIG will continue to work with our law enforcement partners to protect the integrity of federal health care programs.”
From October 2015 through February 2020, the defendant submitted over $3 million in billings to Medicare for colonoscopy and gastroenterological procedures that were not performed. Most of these billings indicated that the services were rendered to disabled beneficiaries, who were living in residential group homes. Medicare reimbursed approximately $1.4 million of these false claims, none of which the defendant was entitled to receive.
The government’s case is being prosecuted by Assistant United States Attorneys Charles P. Kelly and Madeline O’Connor.
The Defendant:
Morris Barnard
Age: 59
Great Neck, New YorkE.D.N.Y. Docket No. 21-018(GRB)
Former United States Postal Service Employee Sentenced to 30 Months in Prison for Stealing Blank Money Orders Valued at over $4 MillionRead the Press Release
Earlier today, in federal court in Brooklyn, Jaleesa Wallace was sentenced by United States District Judge Carol Bagley Amon to 30 months in prison for postal theft. As part of her sentence, Wallace was also ordered to pay over $4 million in restitution.
Breon Peace, United States Attorney for the Eastern District of New York, and Matthew Modafferi, Special Agent-in-Charge, United States Postal Service, Office of the Inspector General, Northeast Area Field Office (USPS-OIG), announced the sentence.
“The defendant exploited her position with one of our most trusted institutions, the United States Postal Service, for her own personal gain and caused significant losses to financial institutions,” stated United States Attorney Peace. “Residents of the district need to be confident that postal employees carry out their duties honestly and that important documents can travel safely in the mail.”
Mr. Peace also expressed his thanks to the United States Postal Inspection Service, New York Division, and the New York City Police Department for their diligent efforts on the case.
“The Special Agents of the USPS OIG will vigorously investigate Postal Service employees who compromise their integrity for personal gain. The sentence imposed on the defendant will serve as a reminder that there are severe consequences when individuals utilize their Postal position to commit crimes,” stated USPS-OIG Special Agent-in-Charge Modafferi. “The U.S. Postal Service, Office of Inspector General would like to thank our law enforcement partners and the Department of Justice for their dedication and efforts in this investigation.”
As set forth in court filings, in February 2021, 10,000 blank money orders were reported missing from a USPS post office on Utica Avenue in Brooklyn where Wallace worked. The money orders can be deposited with a financial institution for up to $1,000 each. Agents recovered over 3,000 of the stolen money orders from Wallace’s residence. Over $4 million worth of the stolen money orders have been cashed at various financial institutions throughout the country. Agents also recovered prepaid Department of Labor unemployment benefit cards and approximately $43,000 in cash from Wallace’s apartment. Additionally, Wallace was in possession of approximately 42 pieces of mail from the Department of Labor that were not in her name.
Wallace was terminated by the USPS in August 2021. She forfeited the cash seized from her apartment to the United States Postal Inspection Service. A related defendant, Willie Cook, pleaded guilty to mail theft in March 2022 and is awaiting sentencing.
The government’s case was handled by the Office’s General Crimes Section. Assistant United States Attorney Samantha Alessi is in charge of the prosecution.
The Defendant:
JALEESA WALLACE
Age: 31
Brooklyn, New YorkE.D.N.Y. Docket No. 22-CR-153 (CBA)
Frank James Pleads Guilty to Mass Shooting on New York SubwayRead the Press Release
Frank James, 63, of Milwaukee, Wisconsin, pleaded guilty today to 10 counts of committing a terrorist attack or other violence against a mass transportation vehicle – one count for each gunshot victim – and one count of discharging a firearm in furtherance of his attack. The charges relate to the defendant’s April 12, 2022, mass shooting on the New York City subway in Sunset Park, Brooklyn.
According to court documents, during rush hour on the morning of April 12, 2022, James used a Glock 17 pistol he legally purchased in Ohio to conduct a mass shooting on an N subway train in Brooklyn, New York. As part of his attack, James – disguised in an orange reflective jacket and yellow hard hat to look like a Metropolitan Transportation Authority (MTA) employee – set off a smoke-emitting device in a subway car before opening fire on his captive victims. The smoke-emitting device caused panicked passengers to scramble to one end of the subway car, allowing James to more easily shoot at his victims. In total, 10 victims were struck by the defendant’s bullets. Even more passengers suffered from smoke inhalation and other mental and physical injuries due to the defendant’s attack.
“As described in court filings, the defendant set off a smoke bomb in a New York City subway car and then fired a handgun more than 30 times, striking ten innocent passengers,” said Attorney General Merrick B. Garland. “Today’s guilty plea demonstrates that the Justice Department will work relentlessly to hold accountable those who engage in mass violence and terrorize our communities.”
“On the morning of April 12, 2022, Frank James cold-bloodedly shot innocent New Yorkers traveling on the subway in Brooklyn and brought terror to our great city. James’s crimes of violence have been met with swift justice,” said U.S. Attorney Breon Peace for the Eastern District of New York. “James’s admission of guilt to all eleven counts of the superseding indictment acknowledges the terror and pain he caused. This guilty plea is an important step towards holding James fully accountable and helping the victims of the defendant’s violence and our great city heal.”
“Frank James, as he admitted today, deliberately planned and carried out an attack of terror on everyday New Yorkers. The FBI's JTTF and our law enforcement partners remain ever vigilant in our efforts to protect our city, and we will ensure those willing to commit acts of terror face the consequences of their actions,” said Assistant Director in Charge Michael J. Driscoll of the FBI New York Field Office.
“Today’s guilty plea is a distinct admission of the terror Mr. James inflicted on New Yorkers last April in Brooklyn, and he is being held accountable for his reprehensible actions that morning,” said Commissioner Keechant L. Sewell of New York City Police Department (NYPD). “Our nation’s largest transit system is the lifeblood of New York City. And its subway riders expect and deserve the brisk, coordinated, and meticulous work exhibited by everyone involved in bringing this terrible incident to a successful close. For their unwavering dedication to all the people we serve, I thank and commend the NYPD patrol officers who arrested Mr. James on the run, as well as each of the detectives and agents assigned to the Joint Terrorism Task Force who methodically shrunk his world until he had nowhere else to turn. Lastly, I also want to thank the public for their vigilance and their help in taking this violent criminal off of our streets.”
The investigation reflects that the attack was the culmination of substantial planning. Beginning as early as 2017, James began purchasing items he could use in an attack, including smoke grenades, ammunition, weapons, and his disguise. In the months leading up to his attack, James conducted web searches for “MTA,” “New York,” “transit,” “stops on the N train,” and “311 kings highway brooklyn ny,” which is near where James parked his rented U-Haul van before entering the subway. The defendant also recorded and posted videos online foreshadowing his plans, including stating that “if you hear the name Frank James on the news, if something happens to a Frank James that’s sixty-something years old, chances are that’s me.”
Following James’s attack, law enforcement officers searched James’s apartment and storage unit and uncovered a stockpile of weapons, including, among other items, 9mm ammunition; a threaded 9mm pistol barrel, which allows for a silencer or suppresser to be attached; .223 caliber ammunition, which is used with an AR-15 semi-automatic rifle; a taser; a high-capacity rifle magazine; and a blue smoke cannister.
James faces up to life in prison on each of the 11 counts. A sentencing date has not yet been set.
The FBI’s New York Joint Terrorism Task Force, which principally consists of agents from the FBI and detectives from the NYPD are investigating the case. MTA and ATF provided valuable assistance.
Assistant U.S. Attorneys Ian C. Richardson, Sara K. Winik, and Ellen H. Sise for the Eastern District of New York are prosecuting the case, with valuable assistance provided by Paralegal Specialist Magdalena St. Surin and Trial Attorney David Cora of the National Security Division’s Counterterrorism Section.
Frank James Pleads Guilty to Mass Shooting on New York City SubwayRead the Press Release
Earlier today, in federal court in Brooklyn, Frank James pleaded guilty to 10 counts of committing a terrorist attack or other violence against a mass transportation vehicle—one count for each gunshot victim—and one count of discharging a firearm in furtherance of his attack. The charges relate to the defendant’s April 12, 2022 mass shooting on the New York City subway in Sunset Park, Brooklyn. Today’s proceeding was held before United States District Judge William F. Kuntz, II. When sentenced, James faces up to life in prison on each of the 11 counts.
Merrick B. Garland, United States Attorney General, 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 guilty plea.
“On the morning of April 12, 2022, Frank James cold-bloodedly shot innocent New Yorkers traveling on the subway in Brooklyn, and brought terror to our great city. James’s crimes of violence have been met with swift justice,” stated United States Attorney Peace. “James’s admission of guilt to all eleven counts of the superseding indictment acknowledges the terror and pain he caused. This guilty plea is an important step towards holding James fully accountable and helping the victims of the defendant’s violence and our great city heal.”
Mr. Peace praised the outstanding efforts of the FBI’s New York Joint Terrorism Task Force, which principally consists of agents from the FBI and detectives from the NYPD in bringing the defendant to justice. Mr. Peace also thanked the Metropolitan Transportation Authority (MTA) and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) for their substantial assistance.
“As described in court filings, the defendant set off a smoke bomb in a New York City subway car and then fired a handgun more than 30 times, striking ten innocent passengers,” said Attorney General Merrick B. Garland. “Today’s guilty plea demonstrates that the Justice Department will work relentlessly to hold accountable those who engage in mass violence and terrorize our communities.”
“Frank James, as he admitted today, deliberately planned and carried out an attack of terror on everyday New Yorkers. The FBI's JTTF and our law enforcement partners remain ever vigilant in our efforts to protect our city, and we will ensure those willing to commit acts of terror face the consequences of their actions,” stated FBI Assistant-Director in Charge Driscoll.
“Today’s guilty plea is a distinct admission of the terror Mr. James inflicted on New Yorkers last April in Brooklyn, and he is being held accountable for his reprehensible actions that morning,” stated NYPD Commissioner Keechant L. Sewell. “Our nation’s largest transit system is the lifeblood of New York City. And its subway riders expect and deserve the brisk, coordinated, and meticulous work exhibited by everyone involved in bringing this terrible incident to a successful close. For their unwavering dedication to all the people we serve, I thank and commend the NYPD patrol officers who arrested Mr. James on the run, as well as each of the detectives and agents assigned to the Joint Terrorism Task Force who methodically shrunk his world until he had nowhere else to turn. Lastly, I also want to thank the public for their vigilance and their help in taking this violent criminal off of our streets.”
According to court filings and facts presented at the plea proceeding, at approximately 8:26 a.m. on April 12, 2022, James used a Glock 17 handgun that he legally purchased in Ohio to conduct a mass shooting on an N subway train in Brooklyn. As part of his attack, James—disguised in an orange reflective jacket and yellow hardhat to look like an MTA employee—set off a smoke-emitting device in a subway car before opening fire on his captive victims. The smoke-emitting device caused panicked passengers to scramble to one end of the subway car, allowing James to more easily shoot at his victims. In total, 10 victims were struck by the defendant’s bullets. Even more passengers suffered from smoke inhalation and other emotional and physical injuries caused by the defendant’s attack.
The investigation reflects that the attack was the culmination of substantial planning. Beginning as early as 2017, James began purchasing items he could use in an attack, including smoke grenades, ammunition, weapons, and his disguise. In the months leading up to his attack, James conducted internet searches for “MTA,” “New York,” “transit,” “stops on the N train,” and “311 kings highway brooklyn ny,” which is near where James parked his rented U-Haul van before entering the subway. The defendant also recorded and posted videos online foreshadowing his plans, including stating that “if you hear the name Frank James on the news, if something happens to a Frank James that’s sixty-something years old, chances are that’s me.”
Following James’s attack, law enforcement officers searched James’s apartment and storage unit and uncovered a stockpile of weapons, including, among other items: 9mm ammunition; a threaded 9mm pistol barrel, which allows for a silencer or suppresser to be attached; .223 caliber ammunition, which is used with an AR-15 semi-automatic rifle; a taser; a high-capacity rifle magazine; and a blue smoke cannister.
The government’s case is being handled by the Office’s National Security and Cybercrime Section. Assistant U.S. Attorneys Ian C. Richardson, Sara K. Winik and Ellen H. Sise are in charge of the prosecution, with assistance from Paralegal Specialist Magdalena St. Surin and Trial Attorney David Cora of the National Security Division’s Counterterrorism Section.
The Defendant:
FRANK JAMES
Age: 63
Milwaukee, WisconsinE.D.N.Y. Docket No. 22-CR-214 (WFK)
Department of Justice Files Nationwide Lawsuit Against AmerisourceBergen Corp. and Subsidiaries for Controlled Substances Act ViolationsRead the Press Release
BROOKLYN, NY – In a civil complaint filed today, the Department of Justice alleges that AmerisourceBergen Corporation and two of its subsidiaries, AmerisourceBergen Drug Corporation and Integrated Commercialization Solutions, LLC (together “AmerisourceBergen”), collectively one of the country’s largest wholesale pharmaceutical distributors, violated federal law in connection with the distribution of controlled substances to pharmacies and other customers across the country, contributing to the prescription opioid epidemic.
The complaint alleges that this unlawful conduct resulted in at least hundreds of thousands of violations of the Controlled Substances Act (CSA). The Justice Department seeks civil penalties and injunctive relief.
“AmerisourceBergen, a wholesale drug distributor, flagrantly and repeatedly violated its obligation to notify DEA of suspicious orders for controlled substances, which directly contributed to the epidemic of prescription opioid abuse across the United States,” stated United States Attorney Peace.
“The Department of Justice is committed to holding accountable those who fueled the opioid crisis by flouting the law,” said Associate Attorney General Vanita Gupta. “Companies distributing opioids are required to report suspicious orders to federal law enforcement. Our complaint alleges that AmerisourceBergen—which sold billions of units of prescription opioids over the past decade—repeatedly failed to comply with that requirement.”
“AmerisourceBergen, one of the largest wholesale distributors of opioids in the world, had a legal obligation to report suspicious orders to the Drug Enforcement Administration, and our complaint alleges that the company’s repeated and systemic failure to fulfill this simple obligation helped ignite an opioid epidemic that has resulted in hundreds of thousands of deaths over the past decade,” said DEA Administrator Anne Milgram. “The men and women of the DEA will stop at nothing to hold accountable registrants that fail to uphold their responsibility of saving American lives by filing suspicious order reports.”
To prevent the unlawful distribution of opioids and other controlled substances, the CSA requires that wholesale drug distributors like AmerisourceBergen report suspicious orders of controlled substances to DEA. An order is suspicious if it has an unusual size, deviates substantially from a normal pattern, has an unusual frequency, or carries other signs that the order is suspicious, such as suspicions about the legitimacy of the customers’ business practices.
The complaint filed in the U.S. District Court for the Eastern District of Pennsylvania alleges that over the course of nearly a decade, from 2014 through the present, AmerisourceBergen violated the CSA by failing to report at least hundreds of thousands of suspicious orders of controlled substances to the DEA as required by law. The alleged unlawful conduct includes filling and failing to report numerous orders from pharmacies that AmerisourceBergen knew were likely facilitating diversion of prescription opioids. Today’s filing is the result of a multi-year investigation by the DEA, the Civil Division’s Consumer Protection Branch and several U.S. Attorneys’ Offices.
The government’s complaint specifies several pharmacies for which AmerisourceBergen allegedly was aware of significant “red flags” suggesting the existence of diversion of prescription drugs to illicit markets. The complaint asserts that AmerisourceBergen nevertheless continued to distribute drugs to the pharmacies for years and reported few suspicious orders to the DEA. The five examples include: two pharmacies, one in Florida and one in West Virginia, for which AmerisourceBergen knew the drugs it distributed were likely being sold in parking lots for cash; a New Jersey pharmacy that has pleaded guilty to unlawfully selling controlled substances; another New Jersey pharmacy whose pharmacist-in-charge has been indicted for drug diversion; and a Colorado pharmacy that AmerisourceBergen knew was its largest purchaser of oxycodone 30mg tablets in all of Colorado. The government further alleges that for this Colorado pharmacy, AmerisourceBergen specifically identified eleven patients as potential “drug addicts” whose prescriptions likely were illegitimate. Two of those patients subsequently died of overdoses.
The complaint further alleges that AmerisourceBergen not only ignored red flags of diversion, but also relied on internal systems to monitor and identify suspicious orders that were deeply inadequate, both in design and implementation. These systems allegedly flagged only a tiny fraction of suspicious orders, thereby enabling diversion and AmerisourceBergen’s failure to report orders it was legally obligated to identify to the DEA. In fact, the complaint asserts that in the midst of the opioid epidemic, AmerisourceBergen intentionally altered its internal systems in a way that reduced the number of controlled substances reported as suspicious. Even for the small percentage of orders that AmerisourceBergen did identify as suspicious, the company routinely failed to report them to the DEA.
The government’s complaint alleges that for years AmerisourceBergen flouted its legal obligations and prioritized profits over the well-being of Americans.
If AmerisourceBergen is found liable, it could face escalating civil penalties depending on when each violation occurred and the type of controlled substance at issue. Specifically: up to $10,000 for each reporting violation before November 2015, up to $16,864 for each violation between November 2015 and October 2018 and for each violation relating to a suspicious order for a non-opioid controlled substance not reported after October 2018, and up to $109,374 for each violation relating to a suspicious opioid order not reported after October 2018, potentially totaling billions of dollars in penalties. The court also may award injunctive relief to prevent AmerisourceBergen from committing future CSA violations.
The claims made in the complaint are allegations that, if the case were to proceed to trial, the government must prove by a preponderance of the evidence.
The United States is represented in the filed action by Assistant U.S. Attorneys Elliot M. Schachner and Diane Leonardo for the Eastern District of New York, Trial Attorneys Michael Wadden, Amy DeLine, and Deborah Sohn of the Department of Justice Civil Division’s Consumer Protection Branch, Assistant U.S. Attorneys Hayden M. Brockett and Jordann R. Conaboy for the District of New Jersey, Assistant U.S. Attorneys Anthony D. Scicchitano and Landon Jones for the Eastern District of Pennsylvania and Assistant U.S. Attorneys Amanda Rocque and David Moskowitz for the District of Colorado. The DEA collaborated with the Civil Division’s Consumer Protection and the U.S. Attorney’s Offices to investigate the case.
Queens Resident Sentenced to over 12 Years in Prison for Attempting to Provide Material Support to ISISRead the Press Release
Earlier today in federal court in Brooklyn, Parveg Ahmed was sentenced by United States District Judge Ann M. Donnelly to 153 months’ imprisonment and 15 years supervised release for one count of attempting to provide material support or resources to the Islamic State of Iraq and al Sham (ISIS), a foreign terrorist organization. The defendant pleaded guilty to the charge in June 2018.
Breon Peace, United States Attorney for the Eastern District of New York, Matthew G. Olsen, Assistant Attorney General of the Justice Department’s National Security Division, 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.
“Ahmed nearly fulfilled his goal to join a group of violent terrorists who have killed numerous innocent victims, including American citizens, and expressed that he planned to fight against ‘the West’ if he made it to Syria,” stated United States Attorney Peace. “Today’s sentence demonstrates that a significant prison sentence is the end result for radicalized individuals pursuing a misguided path of terror and violence.”
Mr. Peace thanked the FBI’s Joint Terrorism Task Force for its exemplary work on the case.
“The defendant willingly traveled overseas in an attempt to join ISIS so he could participate in the group’s violent acts of terror. The FBI New York Joint Terrorism Task Force, along with our law enforcement partners, remain unwavering in our commitment to protect the American people. As today’s sentence should demonstrate to all, we will continue to ensure those wishing to partake in acts of terror face the consequences in the criminal justice system.”
“An American citizen, Ahmed traveled to the Middle East with the sole intention of betraying his own country by taking up arms against it in the name of ISIS,” stated NYPD Commissioner Keechant Sewell. “Identifying and stopping individuals like this before they can harm the United States and our people are the ideals upon which the Joint Terrorism Task Force was established. I commend and thank the investigators from the NYPD, FBI, and all of our partner agencies on the nation’s first JTTF, here in New York City, for their tireless work on this important case.”
As detailed in publicly filed court documents, Ahmed is a United States citizen who traveled to Saudi Arabia in June 2017, purportedly to celebrate an Islamic religious holiday. Upon his arrival in Saudi Arabia, Ahmed attempted to travel to Syria to join ISIS. Ahmed was apprehended in a Middle Eastern country during his attempted travel to ISIS-controlled territory.
Previously, Ahmed had repeatedly expressed support on social media for ISIS and for individuals who provided support to the foreign terrorist organization’s mission of violent extremism. On July 17, 2017, JTTF agents obtained a search warrant for his personal computer, and learned that he had viewed or listened to recordings of radical Islamic clerics Anwar al-Awlaki, a United States-born cleric and prominent leader of the foreign terrorist organization al Qaeda in the Arabian Peninsula, who was killed on or about September 30, 2011, and Abdullah el-Faisal, a Jamaican-born cleric, who was found guilty in the United Kingdom of solicitation to commit murder for preaching to followers to kill individuals, including Americans, because he deemed them to be enemies of Islam. Ahmed was deported to the United States on August 28, 2017, where he was arrested at John F. Kennedy International Airport. Subsequent review of electronic devices found in Ahmed’s possession when he was detained attempting to travel to Syria also revealed draft messages explaining that the defendant planned to join ISIS in Syria to wage violent jihad and expressing farewell to the defendant’s family members. Specifically, a draft message stated “[W]e have made it to Dawlatul Islam [ISIS] in Syria. In sha Allah [God willing] we will join the Jihad very soon and in Sha Allah [God willing] we will then join the ranks of the Shuhuda [martyrs]. The West has invaded the land of the Muslims and is constantly attacking it.”
The government’s case is being handled by the Office’s National Security & Cybercrime Section. Assistant United States Attorneys Craig R. Heeren and Meredith A. Arfa are in charge of the prosecution, with assistance from Paralegal Specialist Magdalena St. Surin and Trial Attorney John Cella of the National Security Division’s Counterterrorism Section.
The Defendant:
PARVEG AHMED
Age: 27
Ozone Park, QueensQueens Man Sentenced to 17 Years in Prison for Sexual Exploitation of a Child on the InternetRead the Press Release
Earlier today, in federal court in Central Islip, Kevin Rizo was sentenced by United States District Judge Joanna Seybert to 17 years in prison for sexually exploiting a minor. Rizo will also be required to register as a sex offender upon his release from prison. Rizo pleaded guilty to the charge in September 2021.
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 sentence.
“The defendant’s sextortion is unconscionable and extremely harmful to the young boy who should be commended for bravely coming forward to law enforcement to stop this predator,” stated United States Attorney Peace. “Today’s substantial prison sentence will protect the community here and elsewhere from Rizo, who trolled the Internet for more than 100 boys to entice and terrorize. 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.”
“Rizo preyed on children utilizing the internet and social media applications – using fear to extort them to do his bidding. Sextortion is a growing threat for children online and this significant sentence sends a clear message that those who attempt to exploit and harm children will face serious consequences,” said Ivan J. Arvelo, Special Agent in Charge for Homeland Security Investigations in New York.
In December 2016, a 14-year-old boy and his parents reported to Nassau County police officers that on the night of November 30, 2016 to December 1, 2016, the victim had been contacted by Rizo on Instagram, who was using the moniker “Alyssa,” and pretending to be a teenage girl. After the victim complied with “Alyssa’s” request to see explicit photographs and videos of the victim, the defendant threatened to share those photographs and videos with the victim’s friends unless the victim provided even more explicit material. On that same day, several friends of the victim received nude photos of the teen from Rizo.
The government’s investigation revealed that Rizo had communicated with at least 130 boys and that most of them sent him nude images and videos of themselves at his behest. After Rizo received the images and videos, he threatened to disseminate them to others, including the boys’ friends and family members, if more images and videos were not sent.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorney Oren Gleich is in charge of the prosecution.
The Defendant:
KEVIN RIZO (also known as “Alyssarxx,” “Alysaflxx,” Alyssa.rxx,” and “Ally.love.15”)
Age: 33
Flushing, New YorkE.D.N.Y. Docket No. 17-CR-283 (JS)
New York Man Sentenced to over 12 Years in Prison for Attempting to Provide Material Support to ISISRead the Press Release
A New York man was sentenced today to 12 years and nine months in prison followed by 15 years of supervised release for attempting to provide material support or resources to the Islamic State of Iraq and al Sham (ISIS), a foreign terrorist organization.
Parveg Ahmed, 27, of Queens, pleaded guilty to one count of attempting to provide material support or resources to a foreign terrorist organization in June 2018. According to court documents, Ahmed is a U.S. citizen who traveled to Saudi Arabia in June 2017, purportedly to celebrate an Islamic religious holiday. Upon his arrival in Saudi Arabia, Ahmed attempted to travel to Syria to join ISIS. Ahmed was apprehended in a country bordering Syria during his attempted travel to ISIS-controlled territory.
Previously, Ahmed had repeatedly expressed support on social media for ISIS and for individuals who provided support to the foreign terrorist organization’s mission of violent extremism. On July 17, 2017, law enforcement agents obtained a search warrant for his personal computer, and learned that he had viewed or listened to recordings of radical Islamic clerics Anwar al-Awlaki, a U.S.-born cleric and prominent leader of the foreign terrorist organization al Qaeda in the Arabian Peninsula, who was killed on or about Sept. 30, 2011, and Abdullah el-Faisal, a Jamaican-born cleric, who was found guilty in the United Kingdom of solicitation to commit murder for preaching to followers to kill individuals, including Americans, because he deemed them to be enemies of Islam. Ahmed was deported to the United States on Aug. 28, 2017, where he was arrested at John F. Kennedy International Airport. Subsequent review of electronic devices found in Ahmed’s possession when he was detained attempting to travel to Syria also revealed:
- Messages explaining that the defendant planned to join ISIS in Syria to wage violent jihad and expressing farewell to the defendant’s family members. Specifically, review of his devices revealed a message he composed, but had not yet sent, stating, “[W]e have made it to Dawlatul Islam [ISIS] in Syria. In sha Allah [God willing] we will join the Jihad very soon and in Sha Allah [God willing] we will then join the ranks of the Shuhuda [martyrs]. The West has invaded the land of the Muslims and is constantly attacking it.”
Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division, U.S. Attorney Breon Peace for the Eastern District of New York, Assistant Director Robert R. Wells of the FBI Counterterrorism Division and Assistant Director in Charge Michael J. Driscoll of the FBI New York Field Office made the announcement.
The FBI’s Joint Terrorism Task Force investigated the case.
Assistant U.S. Attorneys Craig R. Heeren and Meredith A. Arfa for the Eastern District of New York prosecuted the case, with valuable assistance provided by the National Security Division’s Counterterrorism Section.
Four Defendants Charged with Conspiring to Provide Material Support to ISISRead the Press Release
A criminal complaint was unsealed yesterday in federal court in Brooklyn charging Mohammad David Hashimi, 35, of Potomac Falls, Virginia; Abdullah At Taqi, 23, of East Elmhurst, Queens, New York; Khalilullah Yousuf, 34, of Ontario, Canada; and Seema Rahman, 25, of Edison, New Jersey, with conspiring to provide material support to the Islamic State of Iraq and al-Sham (ISIS). Hashimi, Taqi and Rahman were arrested on Dec. 14 in Virginia, New York and New Jersey, respectively. Yousuf was also arrested on Dec. 14 in Canada by Canadian law enforcement pursuant to a provisional arrest request from the United States. Taqi and Rahman made their initial appearances in federal court in Brooklyn before Chief U.S. Magistrate Judge Cheryl L. Pollak. Hashimi made his initial appearance in federal court in Alexandria, Virginia, before U.S. Magistrate Judge Ivan Davis and was ordered detained pending trial.
According to court documents, Hashimi and Yousuf were members of a group chat (referred to in the complaint as Group Chat-1) on an encrypted social media and mobile messaging electronic communication service that facilitated communication between and among supporters of ISIS and other groups that adhered to similar violent jihadist ideologies. In early April 2021, members of Group Chat-1 discussed posting donation links that purported to be for humanitarian causes but that were in fact intended to help the “mujahideen,” an Arabic term that translates to “holy warriors” that is used by ISIS supporters to refer to ISIS fighters. Yousuf provided a link to a specific Bitcoin address and another member of Group Chat-1 posted a link to a PayPal campaign, both of which were controlled by an individual identified in the Complaint as Facilitator-1.
“These defendants promoted the violent extremism of ISIS by pretending to raise money for humanitarian causes only to transfer the funds to cryptocurrency accounts tied to the group,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “These arrests show the Justice Department’s unwavering commitment to bringing to justice all those who would help terrorist organization threaten harm to our people.”
“As alleged, this crowdfunding network used cryptocurrency, Bitcoin wallets, GoFundMe and PayPal to collect and raise blood money to support ISIS, not for needy families as they falsely claimed in their attempt to deceive law enforcement,” said U.S. Attorney Breon Peace for the Eastern District of New York. “I commend our prosecutors and the FBI’s New York Joint Terrorism Task Force for piercing the veil of secrecy to identify the perpetrators of this scheme, reveal the true evil nature of these virtual money transfers, and bring to justice those who seek to enable acts of violent extremism.”
“These arrests show the FBI and our partners will not tolerate those who attempt to raise money to fund ISIS or any other terrorist group,” said Assistant Director Robert R. Wells of the FBI’s Counterterrorism Division. “According to the complaint, these individuals allegedly made fundraising appeals for charitable donations to humanitarian causes and did not reveal how they planned to use the money. The FBI will continue to aggressively investigate and hold accountable those who try to assist terrorists.”
In conversations with a confidential source, Taqi and Facilitator-1 discussed giving money to support ISIS fighters. When the confidential source asked Facilitator-1 for proof that the money being donated was going to support ISIS, Facilitator-1 sent the confidential source screenshots and a video depicting tactical gear, ammunition and grenades on top of an ISIS flag. An image of one of the photographs is depicted below.
Facilitator-1 also told the confidential source that the charitable descriptions in the fundraising campaigns were in fact a “deception for the infidels” and the “words that are in the link are fake in order to deceive.”
Between February 2021 and July 2022, the defendants raised and contributed more than $35,000 to Facilitator-1 via a combination of cryptocurrency and other sources. The defendants contributed more than $24,000 to Facilitator-1’s Bitcoin address, with Yousuf contributing $20,347.89, Taqi contributing $2,769.35 and Rahman contributing $927.51. The defendants also sent more than $1,000 to the PayPal account associated with Facilitator-1, with Rahman contributing approximately $550, Taqi contributing approximately $480 and Hashimi contributing $55. In addition, both Yousuf and Rahman created multiple GoFundMe fundraising campaigns purporting to collect money for charitable causes. Hashimi contributed $364 and Taqi contributed $200 through the Yousuf-created GoFundMe campaigns, while Rahman raised approximately $10,000 through the GoFundMe campaigns that she created, and then wired the proceeds, approximately $10,024, to individuals connected to Facilitator-1 via Western Union.
Hashimi has also made statements suggesting his desire to die in combat or in a terrorist attack on behalf of, a foreign terrorist organization. For example, in November 2020, Hashimi told another confidential source over encrypted communications that “I have made up my mind I want to make Hijra to Afghanistan. To join dawla,” in other words, travel to join ISIS. In or about September 2021, Hashimi told another individual through a direct message that “I just want Jannah,” i.e., paradise or the after-life, “And to die on the battlefield.”
The defendants are each charged with conspiring to provide material support to a foreign terrorist organization, which carries a maximum statutory penalty of up to 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI is investigating the case.
Assistant U.S. Attorneys Douglas M. Pravda, Ian C. Richardson and Nina Gupta for the Eastern District of New York and Trial Attorneys Daniel Gardner and Alexandra Hughes of the National Security Division’s Counterterrorism Section are prosecuting the case.
Acomplaint is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Long Island Medical Doctor Charged with Illegally Distributing Oxycodone PillsRead the Press Release
Late yesterday, in federal court in Central Islip, an 18-count indictment was returned charging Dr. Roya Jafari-Hassad with illegal distribution of oxycodone and witness tampering. Hassad was arrested this morning and is scheduled to be arraigned this afternoon before United States Magistrate Judge Steven L. Tiscione.
Breon Peace, United States Attorney for the Eastern District of New York, Frank A. Tarentino, Special Agent-in-Charge, Drug Enforcement Administration (DEA), New York Division and Elysia M. Doherty, Assistant Special Agent-in-Charge, U.S. Department of Health and Human Services, Office of Inspector General’s Office of Investigations, New York Region (HHS-OIG) announced the charges.
“As alleged, the defendant abandoned her medical oath to operate a pill mill in Nassau County, illegally dispensing oxycodone to patients for a cash fee,” stated United States Attorney Breon Peace. “This Office will continue to protect our community from bad actors who flood our streets with dangerous drugs, even if they hide behind their prescription pad.”
“A prescription pad in the wrong hands can be a deadly weapon,” said DEA Special Agent in Charge Frank Tarentino. “The diversion of prescription medication is inexcusable for medical professionals and I applaud the hard work by DEA and our law enforcement partners who brought these charges against Dr. Jafari-Hassad.”
“Health care professionals have a duty to prescribe medication responsibly to ensure the well-being of their patients. Failing to do so puts the health and safety of patients at risk and undermines critical measures to address the opioid epidemic,” said Susan A. Frisco, Acting Special Agent in Charge with the U.S. Department of Health and Human Services, Office of the Inspector General. "HHS-OIG will continue to work with our law enforcement partners to hold accountable bad actors who exploit opioid addiction for personal financial gain.”
Specifically, the investigation has disclosed that Hassad operated a medical office in Great Neck, New York, in which she charged her patients hundreds of dollars in cash in exchange for an illegal monthly oxycodone prescription. These oxycodone prescriptions had no legitimate medical purpose. The cash charge was often in addition to Hassad billing the patient’s insurance for a variety of charges, many relating to procedures that never occurred. It is estimated that Hassad made hundreds of thousands of dollars a year cash solely from the cash payments made by patients to obtain their oxycodone prescriptions.
For example, Hassad prescribed oxycodone to an undercover agent at every visit including the first visit. These visits took place over a year long period and none of the oxycodone prescriptions had a legitimate medical purpose. In addition, after a search warrant was executed at her medical offices, Hassad reached out to patients and attempted to convince them to alter their testimony about their oxycodone prescriptions.
Oxycodone is a scheduled controlled substance that may be dispensed by medical professionals only for a legitimate medical purpose in the usual course of a doctor’s professional practice. It is a powerful and highly addictive drug and is frequently abused because of its potency when crushed into a powder and ingested, leading to a heroin-like euphoria.
The government’s case is being prosecuted by Assistant United States Attorneys Charles P. Kelly and Madeline O’Connor.
The Defendant:
ROYA JAFARI-HASSAD
Age: 56
Bayside, New YorkE.D.N.Y. Docket No. 22-545
Four Defendants Charged with Conspiring to Provide Cryptocurrency to ISISRead the Press Release
A criminal complaint was unsealed today in federal court in Brooklyn charging Mohammad David Hashimi, Abdullah At Taqi, Khalilullah Yousuf, and Seema Rahman with conspiring to provide material support to the Islamic State of Iraq and al-Sham (“ISIS”). Hashimi, Taqi, and Rahman were arrested this morning in Virginia, New York, and New Jersey, respectively. Yousuf was also arrested this morning in Canada by Canadian law enforcement pursuant to a provisional arrest request from the United States. Taqi and Rahman made their initial appearances earlier today in federal court in Brooklyn before Chief United States Magistrate Judge Cheryl L. Pollak. Hashimi made his initial appearance in federal court in Alexandria, Virginia before United States Magistrate Judge Ivan Davis and was ordered held pending trial.
Breon Peace, United States Attorney for the Eastern District of New York, Matthew G. Olsen, Assistant Attorney General of the Justice Department’s National Security Division, and Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the arrests and charges.
“As alleged, this crowdfunding network used cryptocurrency, Bitcoin wallets, GoFundMe, and PayPal to collect and raise blood money to support ISIS, not for needy families as they falsely claimed in their attempt to deceive law enforcement,” stated United States Attorney Peace. “I commend our prosecutors and the FBI’s New York Joint Terrorism Task Force for piercing the veil of secrecy to identify the perpetrators of this scheme, reveal the true evil nature of these virtual money transfers, and bring to justice those who seek to enable acts of violent extremism.”
“As alleged, the defendants deliberately participated in schemes to raise funds for ISIS in support of the group’s barbaric aims and actions. The FBI New York’s Joint Terrorism Task Force and our law enforcement partners remain relentless in our determination to protect our nation from those willing to support the scourge of international terrorism,” stated FBI Assistant Director-in-Charge Driscoll.
As set forth in the Complaint, Hashimi and Yousuf were members of a group chat (referred to in the Complaint as Group Chat-1) on an encrypted social media and mobile messaging electronic communication service that facilitated communication between and among supporters of ISIS and other groups that adhered to similar violent jihadist ideologies. In early April 2021, members of Group Chat-1 discussed posting donation links that purported to be for humanitarian causes but were in fact intended to help the “mujahideen,” an Arabic term that translates to “holy warriors” that is used by ISIS supporters to refer to ISIS fighters. Yousuf provided a link to a specific Bitcoin address and another member of Group Chat-1 posted a link to a PayPal campaign, both of which were controlled by an individual identified in the Complaint as Facilitator-1.
In conversations with a confidential source, Taqi and Facilitator-1 discussed giving money to support ISIS fighters. When the confidential source asked Facilitator-1 for proof that the money being donated was going to support ISIS, Facilitator-1 sent the confidential source screenshots and a video depicting tactical gear, ammunition, and grenades on top of an ISIS flag. An image of one of the photographs is depicted below.
Facilitator-1 also told the confidential source that the charitable descriptions in the fundraising campaigns were in fact a “deception for the infidels” and the “words that are in the link are fake in order to deceive.”
Between February 2021 and July 2022, the defendants raised and contributed more than $35,000 to Facilitator-1 via a combination of cryptocurrency and other sources. The defendants contributed more than $24,000 to Facilitator-1’s Bitcoin address, with Yousuf contributing $20,347.89, Taqi contributing $2,769.35, and Rahman contributing $927.51. The defendants also sent more than $1,000 to the PayPal account associated with Facilitator-1, with Rahman contributing approximately $550, Taqi contributing approximately $480, and Hashimi contributing $55. In addition, both Yousuf and Rahman created multiple GoFundMe fundraising campaigns purporting to collect money for charitable causes. Hashimi contributed $364 and Taqi contributed $200 through the Yousuf-created GoFundMe campaigns, while Rahman raised approximately $10,000 through the GoFundMe campaigns that she created, and then wired the proceeds, approximately $10,024, to individuals connected to Facilitator-1 via Western Union.
Hashimi has also made statements suggesting his desire to die in combat or in a terrorist attack on behalf of a foreign terrorist organization. For example, in November 2020, Hashimi told another confidential source over encrypted communications that “I have made up my mind I want to make Hijra to Afghanistan. To join dawla,” in other words, travel to join ISIS. In or about September 2021, Hashimi told another individual through a direct message that “I just want Jannah,” i.e., paradise or the after-life, “And to die on the battlefield.” Hashimi also provided financial support for numerous individuals who have been charged with or convicted of federal crimes of terrorism. Between December 2021 and October 2022, Hashimi gave more than $2,000 to a terrorism defendant through JPay, an inmate funding service.
The charges in the complaint are allegations, and the defendants are presumed innocent unless and until proven guilty.
The government’s case is being handled by the Office’s National Security and Cybercrime Section. Assistant U.S. Attorneys Douglas M. Pravda, Ian C. Richardson and Nina Gupta are in charge of the prosecution, with assistance provided by Trial Attorneys Daniel Gardner and Alexandra Hughes of the Counterterrorism Section of the Department of Justice’s National Security Division.
The Defendants:
MOHAMMAD DAVID HASHIMI
Age: 35
Potomac Falls, VirginiaABDULLAH AT TAQI
Age: 23
East Elmhurst, Queens, New YorkKHALILULLAH YOUSUF
Age: 34
Ontario, CanadaSEEMA RAHMAN
Age: 25
Edison, New JerseyE.D.N.Y. Docket No. 22-MJ-1323
Russian Military and Intelligence Agencies Procurement Network Indicted in Brooklyn Federal CourtRead the Press Release
Publicly filed court documents, including a 16-count indictment unsealed today in Brooklyn, charge five Russian nationals – including a suspected Federal Security Service (FSB) officer – and two U.S. nationals with conspiracy and other charges related to a global procurement and money laundering scheme on behalf of the Russian government in which the defendants allegedly conspired to obtain military-grade and dual-use technologies from U.S. companies for Russia’s defense sector, and to smuggle sniper rifle ammunition, in violation of new U.S. sanctions imposed earlier this year.
Yevgeniy Grinin, 44, of Moscow; Aleksey Ippolitov, 57, of Moscow; Boris Livshits, 52, of St. Petersburg; Svetlana Skvortsova, 41, of Moscow; Vadim Konoshchenok, 48, of St. Petersburg; Alexey Brayman, 35, of New Hampshire; and Vadim Yermolenko, 41, of New Jersey, are charged with conspiracy to defraud the United States as to the enforcement of export controls and economic sanctions; conspiracy to violate the Export Control Reform Act (ECRA); smuggling; and failure to comply with the Automated Export System relating to the transportation of electronics.
According to the indictment, the defendants unlawfully purchased and exported highly sensitive and heavily regulated electronic components, some of which can be used in the development of nuclear and hypersonic weapons, quantum computing and other military applications.
“The Department of Justice and our international partners will not tolerate criminal schemes to bolster the Russian military’s war efforts,” said Attorney General Merrick B. Garland. “With three of the defendants now in custody, we have disrupted the procurement network allegedly used by the defendants and Russian intelligence services to smuggle sniper rifle ammunition and sensitive electronic components into Russia. The Justice Department will continue to vigorously enforce our economic sanctions and export controls against those who enable the Russian government to continue its unjust war in Ukraine. I am grateful for the tireless efforts of the Department’s Task Force KleptoCapture, the National Security Division, the Office of International Affairs, the U.S. Attorney’s Office for the Eastern District of New York, and the FBI on this case.”
“Today the Department of Justice proves once again that we will relentlessly pursue those who support the Russian war machine by evading sanctions and export controls,” said Deputy Attorney General Lisa O. Monaco. “By exposing the defendants’ smuggling of ammunition and transfer of sensitive U.S. technologies – from quantum computing to hypersonic weapons development – the Department of Justice is holding accountable those who are fueling Russia’s unlawful and unprovoked aggression in Ukraine.”
“The FBI’s work, with our partners, to identify and stop illegal transfers of weapons and dual use-technology to Russia shows that we can and will reach around the world to keep Americans safe,” said FBI Director Christopher Wray. “The industries that these illegal transfers could support – quantum computing, hypersonic weapons – pose great danger in the hands of our adversaries. The FBI will remain relentless against illegal transfers that support such industries in hostile nations, while we also continue to focus on protecting strategic technology innovation here at home.”
“This indictment demonstrates the relentless efforts of the FBI and its partners to thwart Russian procurement actors in their attempts to reconstitute the Russian military’s weapons cache,” said FBI Deputy Director Paul Abbate. “The FBI, along with its U.S. and international partners, remains committed to disrupting and dismantling these networks, regardless of where they are.”
As alleged, the defendants were affiliated with Serniya Engineering and Sertal LLC, Moscow-based companies that operate under the direction of Russian intelligence services to procure advanced electronics and sophisticated testing equipment for Russia’s military industrial complex and research and development sector. Serniya and Sertal operated a vast network of shell companies and bank accounts throughout the world, including in the United States, that were used in furtherance of the scheme to conceal the involvement of the Russian government and the true identity(s) of Russian end users of U.S.-origin equipment.
Following Russia’s invasion of Ukraine in February 2022, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) and the Department of Commerce (DOC) Bureau of Industry and Security (BIS) levied sanctions against Serniya, Sertal, and several companies used in the scheme, as well as multiple individuals affiliated with the network, including defendant Yevgeniy Grinin, calling them “instrumental to the Russian Federation’s war machine.”
“As alleged, the defendants perpetrated a sophisticated procurement network that illegally obtained sensitive U.S. technology to facilitate the Russian war machine,” said U.S. Attorney Breon Peace for the Eastern District of New York. “Our office will not rest in its vigorous pursuit of those who unlawfully procure U.S. technology to be used in furtherance of Russia’s brutal, continued attacks on democracy.”
“From the outset of the Task Force, robust enforcement of U.S. export controls and restrictions on the transfer of sensitive technology has been a key strategic priority,” said Task Force KleptoCapture Director Andrew C. Adams. “Today’s indictment demonstrates the reach of those controls and the United States’ commitment to choking off access to military grade equipment by the Russian regime. We will continue the steady pace of seizures, indictments and arrests, while the Kremlin shopping for spare parts in North Korea.”
As alleged in the indictment, Ippolitov received requests from Russian end users and relayed them to Grinin and Skvortsova, who were both employees of Sertal. Grinin and Skvortsova secured funding and shipping routes for the transactions, and tasked Livshits with procuring the items from U.S. companies. Livshits, a former resident of Brooklyn, New York, opened and controlled a variety of shell companies and associated bank accounts in the New York City area, which he used to route shipments and layer financial transactions in furtherance of the scheme, including in coordination with Konoshchenok, Brayman and Yermolenko.
Konoshchenok – who is suspected to be an FSB officer – would ship or physically smuggle U.S.-origin items from Estonia to Russia, including dual-use electronics, military-grade tactical ammunition and other export-controlled items. As alleged in the indictment, on Oct. 27, 2022, Konoshchenok was stopped at the Estonian border with 35 different types of semiconductors and other electronic components ordered by Livshits, as well as thousands of U.S.-made 6.5mm bullets, which are used in military sniper rifles. On Nov. 24, 2022, Konoshchenok was again stopped attempting to cross into Russia with approximately 20 cases containing thousands of U.S.-origin bullets, including tactical rounds and .338 military sniper rounds. Konoshchenok discussed “fabricating” business records with Livshits to conceal the ammunition shipments, on one occasion describing them as “auto parts.” Incident to Konoshchenok’s arrest, Estonian authorities searched a warehouse held in the name of Konoshchenok’s son and recovered approximately 375 pounds worth of ammunition.
Based in the United States, Brayman and Yermolenko would fabricate shipping documents and invoices, repackaging and reshipping items to intermediate destinations around the world — including to Konoshchenok in Estonia — before eventually arriving in Russia. Yermolenko and Brayman also helped Livshits set up and manage dozens of shell companies and corresponding bank accounts throughout the U.S. that were used in the scheme.
Livshits also interfaced directly with U.S. companies – often using the alias “David Wetzky” – and made materially false statements about how the items would be used and the ultimate end user. He also fabricated shipping documents and invoices and repackaged and reshipped items to intermediate destinations around the world before eventually arriving in Russia.
“The powerful export controls we’ve put in place have been successful in isolating Russia from the global economy,” stated Assistant Secretary of Commerce for Export Enforcement Matthew S. Axelrod. “Today’s actions demonstrate our vigilance in uncovering Russian tactics to illicitly acquire the items they need to keep their brutal war going.”
Grinin, Ippolitov, Livshits and Skvortsova are further charged with conspiracy to violate the International Emergency Economic Powers Act (IEEPA); wire fraud; and money laundering. Grinin, Ippolitov, Livshits, Skvortsova, Brayman and Yermolenko are further charged with bank fraud conspiracy, wire fraud conspiracy and money laundering conspiracy. Today, Brayman surrendered to the FBI and Yermolenko was arrested in New Jersey. Brayman will be arraigned in New Hampshire and Yermolenko will be arraigned in the Eastern District of New York. Konoshchenok was arrested separately by Estonian authorities on Dec. 6 at the request of the United States and is now pending extradition. The remaining defendants are at large.
If convicted of bank fraud or bank fraud conspiracy, the defendants face a maximum of 30 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI investigated the case.
Assistant U.S. Attorneys Artie McConnell and Craig R. Heeren for the Eastern District of New York and Trial Attorney Scott A. Claffee of the National Security Division’s Counterintelligence and Export Control Section are prosecuting the case with assistance from Litigation Analyst Ben Richmond. The Justice Department’s Office of International Affairs provided valuable assistance. The United States wishes to thank the Estonian Internal Security Service and the Prosecutor's Office for their support.
The investigation was coordinated through the Justice Department’s Task Force KleptoCapture, an interagency law enforcement task force dedicated to enforcing the sweeping sanctions, export controls, and economic countermeasures that the United States, along with its foreign allies and partners, has imposed in response to Russia’s unprovoked military invasion of Ukraine. Announced by the Attorney General on March 2 and under the leadership of the Office of the Deputy Attorney General, the task force will continue to leverage all of the Department’s tools and authorities to combat efforts to evade or undermine the collective actions taken by the U.S. government in response to Russian military aggression.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Long Island Man Convicted of Drug Trafficking and Firearms OffensesRead the Press Release
Earlier today, at the federal courthouse in Central Islip, a federal jury convicted Marlon Thompson on all four counts of an indictment charging him with conspiracy to distribute fentanyl, heroin and cocaine base, the distribution of fentanyl that caused the death of the victim Fredrick Koenig, 36, on Christmas Day 2018, and illegal possession of firearms. The verdict followed a six-day trial before United States District Judge Joan M. Azrack. When sentenced, Thompson faces a mandatory minimum sentence of 20 years’ imprisonment and up to life in prison.
Breon Peace, United States Attorney for the Eastern District of New York, Frank A. Tarentino, Special Agent-in-Charge, Drug Enforcement Administration (DEA); and Rodney J. Harrison, Commissioner, Suffolk County Police Commissioner (SCPD), and Raymond A. Tierney, Suffolk County District Attorney, announced the verdict.
“Today, the defendant was held accountable for trafficking fentanyl that caused the tragic overdose death of a young man on Long Island,” stated United States Attorney Peace. “The large quantities of fentanyl the defendant distributed all over Suffolk County had a devastating impact on the community, including by taking this young man away from his family too soon. This Office, together with our federal and local partners, will continue to work tirelessly to prosecute those who contribute to this serious problem.”
“The overwhelming number of drug poisonings throughout the United States is a driving force for DEA to bring those responsible to justice,” stated DEA Special Agent-in-Charge Tarentino. “Today’s conviction emphasizes the rippling effect of this crisis and its devastation of so many lives. This investigation is one example of our commitment to families who have lost loved ones and how we work every day to stop drug traffickers like Marlon Thompson.”
“This defendant was responsible for fueling addiction by trafficking powerful narcotics that led to the death of a Selden man,” stated SCPD Commissioner Harrison said. “We will never stop working together with our law enforcement partners to hold these dealers accountable as well as community groups to help the addicted get the assistance they need.”
“This case is a stark reminder of the tragic devastation that the opioid epidemic has inflicted regionally, and specifically upon Suffolk County,” said Suffolk County District Attorney Raymond A. Tierney. “My office will continue to work collaboratively with our State and Federal law enforcement partners to aggressively pursue and prosecute dealers whose illicit drugs have caused harm or death to others.”
The evidence proved that, from January 2017 through May 2019, the defendant conspired to distribute fentanyl, heroin and cocaine base throughout Suffolk County. On Christmas Day in 2018, the defendant supplied fentanyl to the victim, who suffered a fatal overdose at his parents’ home in Selden, New York. The defendant continued supplying fentanyl, heroin, and crack in Suffolk County for months after Koenig’s death. When Thompson was arrested, law enforcement recovered fentanyl and drug packaging materials from his basement bedroom, and also seized three illegal guns and ammunition from Thompson’s storage unit. The government’s evidence included testimony from Thompson’s co-conspirators, text messages between the defendant and drug dealers discussing their illicit business, drug paraphernalia, and thousands of dollars of bundled U.S. currency derived from the drug sales seized from the defendant’s residence.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorneys Samantha Alessi, Gabriel Park and Catherine M. Mirabile are in charge of the prosecution with assistance from Paralegal Specialist Adam Bernard.
The Defendant:
MARLON THOMPSON
Age: 41
Selden, New YorkE.D.N.Y. Docket No. 19-CR-596 (S-1) (JMA)
Five Russian Nationals, Including Suspected FSB Officer, and Two U.S. Nationals Charged with Helping the Russian Military and Intelligence Agencies Evade SanctionsRead the Press Release
A 16-count superseding indictment was unsealed yesterday in Brooklyn charging five Russian nationals, Yevgeniy Grinin, Aleksey Ippolitov, Boris Livshits, Svetlana Skvortsova and Vadim Konoshchenok with conspiracy and other charges related to a global procurement and money laundering network on behalf of the Russian government. Konoshchenok, a suspected officer with Russia’s Federal Security Service (FSB), was arrested in Estonia on December 6, 2022 and will undergo extradition proceedings to the United States. Grinin, Ippolitov, Livshits and Skvortsova remain at large. Estonian authorities searched a warehouse used by Konoshchenok and recovered approximately 375 pounds worth of U.S.-origin ammunition. Alexey Brayman, a lawful permanent resident of the United States residing in New Hampshire, and Vadim Yermolenko, a U.S. citizen residing in New Jersey, were also arrested and charged as part of scheme.
As alleged, the defendants were affiliated with Serniya Engineering and Sertal LLC, Moscow-based companies that operate under the direction of Russian intelligence services to procure advanced electronics and sophisticated testing equipment for Russia’s military industrial complex and research and development sector. Serniya and Sertal operated a vast network of shell companies and bank accounts throughout the world, including the United States, that were used in furtherance of the scheme to conceal the involvement of the Russian government and the true Russian end users of U.S.-origin equipment. The defendants unlawfully purchased and exported highly sensitive and heavily regulated electronic components, some of which can be used in the development of nuclear and hypersonic weapons, quantum computing and other military applications.
Following Russia’s invasion of Ukraine in February 2022, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) and the Department of Commerce (DOC) Bureau of Industry and Security (BIS) levied sanctions against Serniya, Sertal, Yevgeniy Grinin and several companies used in the scheme, as well as multiple individuals affiliated with the network, including defendant Yevgeniy Grinin, calling them “instrumental to the Russian Federation’s war machine.”
As alleged in the indictment, Sertal was licensed to conduct highly sensitive and classified procurement activities by Russia’s Federal Security Service (FSB), Russia’s principal security agency and the main successor agency to the Soviet Union’s KGB. The Serniya network’s clients included State Corporation Rostec, the state-owned defense conglomerate; State Atomic Energy Corporation Rosatom (Rosatom); the Ministry of Defense; the Foreign Intelligence Service (SVR); and various components of the FSB, including the Department of Military Counterintelligence and the Directorate for Scientific and Technological Intelligence, commonly known as “Directorate T.”
Merrick B. Garland, United States Attorney General, Breon Peace, United States Attorney for the Eastern District of New York, Lisa O. Monaco, Deputy Attorney General for the Department of Justice, Christopher A. Wray, Director, Federal Bureau of Investigation (FBI), Michael J. Driscoll, Assistant Director-in-Charge, FBI, New York Field Office, Matthew Axelrod, Assistant Secretary of Commerce for Export Enforcement, U.S. Department of Commerce, and Andrew Adams, Director, Task Force KleptoCapture, announced the charges.
“The Department of Justice and our international partners will not tolerate criminal schemes to bolster the Russian military’s war efforts,” said Attorney General Merrick B. Garland. “With three of the defendants now in custody, we have disrupted the procurement network allegedly used by the defendants and Russian intelligence services to smuggle sniper rifle ammunition and sensitive electronic components into Russia. The Justice Department will continue to vigorously enforce our economic sanctions and export controls against those who enable the Russian government to continue its unjust war in Ukraine. I am grateful for the tireless efforts of the Department’s Task Force KleptoCapture, the National Security Division, the Office of International Affairs, the U.S. Attorney’s Office for the Eastern District of New York, and the FBI on this case.”
“As alleged, the defendants perpetrated a sophisticated procurement network that illegally obtained sensitive U.S. technology to facilitate the Russian war machine,” stated United States Attorney Peace. “Our Office will not rest in its vigorous pursuit of persons who unlawfully procure U.S. technology to be used in furtherance of Russia’s brutal war on democracy.”
“Today the Department of Justice proves once again that we will relentlessly pursue those who support the Russian war machine by evading sanctions and export controls,” stated Deputy Attorney General Monaco. “By exposing the defendants’ smuggling of ammunition and transfer of sensitive U.S. technologies — from quantum computing to hypersonic weapons development —the Department of Justice is holding accountable those who are fueling Russia’s unlawful and unprovoked aggression in Ukraine.”
“The FBI’s work, with our partners, to identify and stop illegal transfers of weapons and dual use-technology to Russia shows that we can and will reach around the world to keep Americans safe,” said FBI Director Christopher Wray. “The industries that these illegal transfers could support – quantum computing, hypersonic weapons – pose great danger in the hands of our adversaries. The FBI will remain relentless against illegal transfers that support such industries in hostile nations, while we also continue to focus on protecting strategic technology innovation here at home.”
“We continue to protect military and dual-use technologies from adversaries seeking to undermine the United States or bring harm to our allies. Russia has shown it will use any means necessary to skirt our laws, including illegally procuring sensitive electronic components, for the purpose of bolstering its intelligence services and military wartime capabilities. Today’s actions represent outstanding collaborative work by FBI New York and our partners who have relentlessly disrupted these illicit activities, a mission that has become increasingly more critical following Russia's invasion of Ukraine, and sends a strong message to those who jeopardize the national security of the United States,” stated FBI Special Agent-in-Charge Driscoll.
“The powerful export controls we’ve put in place have been successful in isolating Russia from the global economy,” said Assistant Secretary of Commerce for Export Enforcement Axelrod. “Today’s coordinated DOJ and Commerce enforcement actions demonstrate our vigilance in uncovering Russian tactics to illicitly acquire the items they need to keep their brutal war going.”
“From the outset of the Task Force, robust enforcement of U.S. export controls and restrictions on the transfer of sensitive technology has been a key strategic priority,” said Task Force KleptoCapture Director Adams. “Today’s indictment demonstrates the reach of those controls and the United States’ commitment to choking off access to military grade equipment by the Russian regime. We will continue the steady pace of seizures, indictments and arrests, while the Kremlin continues shopping for spare parts in North Korea.”
As alleged in the indictment, Ippolitov received requests from Russian end users and relayed them to Grinin and Skvortsova, who were both employees of Sertal. Grinin and Skvortsova secured funding and shipping routes for the transactions, and tasked Livshits with procuring the items from U.S. companies. Livshits, a former resident of Brooklyn, New York, opened and controlled a variety of shell companies and associated bank accounts in the New York City area, which he used to route shipments and layer financial transactions in furtherance of the scheme. Livshits also interfaced directly with U.S. companies—often using the alias “David Wetzky”—and made materially false statements about how the items would be used and the ultimate end user.
Based in the United States, Brayman and Yermolenko would fabricate shipping documents and invoices, repackaging and reshipping items to intermediate destinations around the world—including to Konoshchenok in Estonia—before eventually arriving in Russia. Yermolenko and Brayman also helped Livshits set up and manage dozens of shell companies and corresponding bank accounts throughout the U.S. that were used in the scheme.
Konoshchenok—a self identified “Colonel” in the FSB—would ship or physically smuggle U.S.-origin items from Estonia to Russia, including dual-use electronics, military-grade tactical ammunition and other export-controlled items. As alleged in the indictment, on October 27, 2022, Konoshchenok was stopped at the Estonian border with 35 different types of semiconductors and other electronic components ordered by Livshits, as well as thousands of U.S.-made 6.5mm bullets, which are used in military sniper rifles. On November 24, 2022, Konoshchenok was again stopped attempting to cross into Russia with approximately twenty cases containing thousands of U.S.-origin bullets, including tactical rounds and .338 military sniper rounds. Konoshchenok discussed “fabricating” business records with Livshits to conceal the ammunition shipments, on one occasion describing them as “auto parts.” Incident to Konoshchenok’s arrest, Estonian authorities searched a warehouse used by Konoshchenok and recovered approximately 375 pounds worth of ammunition.
If convicted, the defendants face a maximum of 30 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 Artie McConnell and Craig Heeren are in charge of the prosecution, along with Trial Attorney Scott A. Claffee of the National Security Division’s Counterintelligence and Export Control Section, with assistance from Litigation Analyst Ben Richmond. The United States thanks the Estonian Internal Security Service and the Prosecutor’s Office for their valuable support.
The Defendants:
Alexey Ippolitov
AGE: 57
Moscow, RussiaYEVGENIY GRININ
age: 44
Moscow, RussiaBORIS LIVSHITS
Age: 52
St. Petersburg, RussiaSVETLANA SKVORTSOVA
AGE: 41
Moscow, RussiaVADIM KONOSHCHENOK
AGE: 48
Tallin, EstoniaALEXEY BRAYMAN
AGE: 35
Merrimack, New HampshireVADIM YERMOLENKO
AGE: 41
Upper Saddle River, New JerseyE.D.N.Y. Docket No. 22-CR-409 (HG)
Mauritanian Terrorist Indicted for the Death of U.S. National in Deadly Mali Hotel Attack and with Providing Material Support to Al-Qaeda in the Islamic Maghreb and Al-MurabitounRead the Press Release
Fawaz Ould Ahmed Ould Ahemeid, a Mauritanian national also known as “Ibrahim Idress” and “Ibrahim Dix,” was arraigned today in federal court in Brooklyn on a six-count indictment charging him with multiple terrorism offenses, including his roles in the March 7, 2015 attack on the La Terrasse restaurant in Bamako, Mali, in which five people were killed; the August 7, 2015 attack on the Hotel Byblos in Sevare, Mali, in which 13 individuals – including five United Nations workers – were killed; and the November 20, 2015 attack on the Radisson Blu Hotel in Bamako, Mali, in which 20 victims were killed, including U.S. citizen Anita Ashok Datar. The defendant, who was transferred to U.S. custody in Mali, arrived at John F. Kennedy International Airport in Queens, New York, on December 9, 2022. United States Magistrate Judge James R. Cho ordered the defendant detained pending trial.
The indictment charges the defendant with the murder of Ms. Datar; the unlawful use of firearms in connection with a crime of violence causing the death of Ms. Datar; conspiracy to provide material support to the designated foreign terrorist organizations al-Qaeda in the Islamic Maghreb (“AQIM”) and al-Murabitoun; provision and attempted provision of material support to AQIM and al-Murabitoun; and unlawful use of explosives.
Breon Peace, United States Attorney for the Eastern District of New York; Matthew G. Olsen, Assistant Attorney General of the Justice Department’s National Security Division, 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 arrest and charges.
“Today, we have made clear that the United States is steadfast in our commitment to bring to justice those who commit barbaric acts of terrorism targeting innocent victims including, as in this case, an American aid worker who was killed more than 4,000 miles from her home in Maryland,” stated United States Attorney Peace. “As a result of our work with our law enforcement partners here and abroad, the defendant now faces justice in a U.S. courtroom for the carnage that was carried out allegedly at his direction.”
Mr. Peace expressed his thanks to the government of Mali for their continued support and assistance throughout this investigation, as well as to the FBI’s Joint Terrorism Task Force, the Justice Department’s Office of International Affairs, and United States Department of State.
“Ahemeid planned and executed deadly attacks targeting westerners, including Americans, and will now be brought to justice,” stated Assistant Attorney General Olsen. “Let this be a reminder to any who would use violence against our people: no matter how far you run or how long you hide, we will not relent in our efforts to hold you accountable.”
“The defendant's alleged actions — inhumanely plotting and carrying out ruthless terrorist attacks — were not forgotten and will not be forgiven. The New York Joint Terrorism Task Force and our law enforcement partners are resolute in our determination to ensure those willing to commit heinous acts of terrorism face the consequences of their actions as we seek justice for the victims of the attacks,” stated FBI Assistant Director-in-Charge Driscoll.
“International terrorism remains a grave threat to safety and freedom around the world,” stated NYPD Commissioner Sewell. “This indictment details the defendant’s callous disregard for human life, and it reinforces the NYPD’s unwavering commitment to bringing terrorists and all those who support them to justice. I want to thank the U.S. Attorney’s Office for the Eastern District of New York, the Justice Department’s National Security Division, the FBI’s New York Field Office, and everyone else who worked on this critical, wide-ranging case.”
La Terrasse Restaurant Attack
As alleged in the indictment, the previously filed criminal complaint and other publicly filed documents, Ahemeid joined AQIM in or around 2007. Subsequently, Ahemeid planned and committed at least three major terrorist attacks against Western targets in Mali. On March 7, 2015, Ahemeid, armed with two AK-47 assault rifles, a pistol, and grenades, committed an attack on the La Terrasse restaurant in Bamako, Mali, killing five people. That same day, al-Murabitoun issued a public statement claiming responsibility for the attack.
Hotel Byblos Attack
Following the La Terrasse attack, Ahemeid helped plan and carry out the August 7, 2015 attack on the Hotel Byblos in Sevare, Mali. During this attack, a gunman armed with an AK-47 assault rifle and wearing a suicide vest entered the Hotel Byblos and opened fire. The attack caused the deaths of 13 victims, including five United Nations workers. The gunman was killed in the attack. Al-Murabitoun subsequently issued a public statement claiming responsibility for the attack.
Radisson Blu Hotel Attack
Ahemeid, along with others, planned and oversaw the November 20, 2015 terrorist attack on the Radisson Blu Hotel in Bamako, Mali. On the morning of November 20, 2015, two men attacked the Radisson Blu, a hotel frequented by Western visitors. The attackers, wearing Western clothing and armed with AK-47 assault rifles and hand grenades, moved from floor to floor of the hotel, shooting innocent victims as they progressed. Security forces responded to the scene and both attackers were ultimately killed. The attack resulted in the deaths of 20 victims, including U.S. citizen Anita Ashok Datar. Datar, a guest at the Radisson Blu, was shot multiple times and died at the scene as a result of the gunshot wounds. Datar was a 41-year-old public health expert from Takoma Park, Maryland, who was in Mali working for an international development firm assisting the United States Agency for International Development. In addition to the 20 deaths, the attack also wounded at least seven people. Following the attack, AQIM issued a public statement claiming responsibility for the attacks on behalf of AQIM and al-Murabitoun, stating “Two heroes infiltrating the Radisson Hotel in Mali, may God accept them. #Al-Qa’ida_in_West_Africa #Ansar_al_din #Al_Murabitun,” along with photographs of the terrorists who committed the murders.
The charges in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty.
The government’s case is being handled by the Office’s National Security and Cybercrime Section. Assistant United States Attorney Jonathan Algor and Michael T. Keilty are in charge of the prosecution, with assistance provided by Trial Attorney Stephanie Sweeten of the Counterterrorism Section of the National Security Division of the Department of Justice.
The Defendant:
Fawaz Ould Ahmed Ould Ahemeid
Age: 44
MauritaniaE.D.N.Y. Docket No. 20-CR-502 (BMC)
Mauritanian Terrorist Charged with Death of American Citizen and with Providing Material Support to Al-Qaeda in the Islamic Maghreb and Al-MurabitounRead the Press Release
Fawaz Ould Ahmed Ould Ahemeid, aka Ibrahim Idress, aka Ibrahim Dix, 44, of Mauritania, was arraigned earlier today in federal court in the Eastern District of New York on a six-count indictment charging him with multiple terrorism offenses, including for his roles in the March 7, 2015 attack on the La Terrasse restaurant in Bamako, Mali, in which five people were killed; the Aug. 7, 2015 attack on the Hotel Byblos in Sevare, Mali, in which 13 individuals – including five United Nations workers – were killed; and the Nov. 20, 2015 attack on the Radisson Blu Hotel in Bamako, Mali, in which 20 victims were killed, including U.S. citizen Anita Ashok Datar. The defendant, who was transferred to U.S. custody in Mali, arrived at John F. Kennedy Airport in Queens, New York, on Dec. 9, 2022, and appeared today before U.S. Magistrate Judge James R. Cho, who entered a permanent order of detention pending trial.
“Ahemeid planned and executed deadly attacks targeting westerners, including Americans, and will now be brought to justice,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “Let this be a reminder to any who would use violence against our people: no matter how far you run or how long you hide, we will not relent in our efforts to hold you accountable.”
“Today, we have once again made clear that we are, and will remain, steadfast in our commitment to working with our law enforcement partners here and abroad to bring to justice those who commit violent acts of terrorism targeting innocent American civilians, wherever they may be found,” said U.S. Attorney Breon Peace for the Eastern District of New York.
"Bringing Ahemeid to the United States to face the charges against him is an important step in achieving justice for those harmed by acts of terrorism, including the American citizen killed in the Radisson Blu Hotel attack," said Assistant Director Robert R. Wells of the FBI's Counterterrorism Division. "The FBI will not be deterred by the passage of time or geographical distance as we work with our partners to hold those who commit acts of terrorism accountable."
As detailed in the indictment, the previously filed criminal complaint and other publicly filed documents, Ahemeid joined AQIM in or around 2007. Subsequently, Ahemeid planned and committed at least three significant terrorist attacks against Western targets in Mali. On March 7, 2015, Ahemeid, armed with two AK-47 assault rifles, a pistol, and grenades, committed an attack on the La Terrasse restaurant in Bamako, Mali, killing five people. That same day, al-Murabitoun issued a public statement claiming responsibility for the attack.
Following the La Terrasse attack, Ahemeid helped plan and execute the Aug. 7, 2015 attack on the Hotel Byblos in Sevare, Mali, including by conducting surveillance of the hotel prior to the attack. During this attack, a lone gunman armed with an AK-47 assault rifle and equipped with a suicide vest entered the Hotel Byblos and opened fire. The attack resulted in the deaths of 13 individuals, including five United Nations workers. The gunman was killed in the attack. Al-Murabitoun subsequently issued a public statement claiming responsibility for the attack.
Finally, Ahemeid, along with others, planned and oversaw the Nov. 20, 2015 terrorist attack on the Radisson Blu Hotel in Bamako, Mali. Beginning in the morning of Nov. 20, 2015, two men attacked the Radisson Blu, a hotel frequented by Western visitors. The attackers, wearing Western clothing and armed with AK-47 assault rifles and hand grenades, moved from floor to floor of the hotel, shooting innocent victims as they progressed. Security forces responded to the scene and both attackers were ultimately killed.
The attack resulted in the deaths of 20 victims, including U.S. citizen Anita Ashok Datar. Datar, a guest at the Radisson Blu, was shot multiple times and died at the scene as a result of the gunshot wounds. Datar was a 41-year-old public health expert from Takoma Park, Maryland, who was in Mali working for an international development firm assisting the United States Agency for International Development. In addition to the 20 deaths, the attack also wounded at least seven people.
Following the attack, AQIM issued a public statement claiming responsibility for the attacks on behalf of AQIM and al-Murabitoun, stating “Two heroes infiltrating the Radisson Hotel in Mali, may God accept them. #Al-Qa’ida_in_West_Africa #Ansar_al_din #Al_Murabitun.” The tweet included photographs of the two attackers holding AK-47s and each attacker’s nom de guerre.
Assistant U.S. Attorney Jonathan Algor and Michael Keilty is in charge of the prosecution, with assistance provided by Trial Attorney Katie Sweeten of the National Security Division’s Counterterrorism Section.
The indictment charges the defendant with (1) the murder of Anita Ashok Datar; (2) the unlawful use of firearms in connection with a crime of violence; (3) causing the death of Anita Ashok Datar through the use of a firearm; (4) conspiracy to provide material support to the designated foreign terrorist organizations al-Qaeda in the Islamic Maghreb (AQIM) and al-Murabitoun; (5) provision and attempted provision of material support to AQIM and al-Murabitoun; and (6) unlawful use of explosives. If convicted, he faces a maximum statutory penalty of life in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The Government of Mali provided continued support and assistance throughout this investigation, as did the Joint Terrorism Task Force and U.S. Department of State.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Home Health Care Agency Settles Fraud Claims for $1.26 Million and Agrees to Pay $2 Million in Wages and Benefits to Underpaid AidesRead the Press Release
Breon Peace, United States Attorney for the Eastern District of New York, and Letitia James, New York State Attorney General, announced today a settlement agreement with a Brooklyn-based licensed home care service agency (LHCSA) White Glove Community Care, Inc. (White Glove). The settlement agreement addresses allegations that White Glove violated the federal False Claims Act and New York State’s False Claims Act in claiming that it paid its home care aides the minimum wages required under New York State law. The agency received payments from Medicaid, which is funded in part by the federal government, and is entitled to receive that money only if it paid its aides the required wages and benefits.
“The arduous work that these aides do, day after day, ensures that some of our most vulnerable neighbors receive the care and are shown the dignity that they deserve,” stated United States Attorney Peace. “This settlement—the third in our continuing investigation of certain licensed home care service agencies—reflects this Office’s ongoing commitment to providing home health aides the hard-earned benefits guaranteed them under New York law and the Medicaid program.”
Mr. Peace thanked the Medicaid Fraud Control Unit of the Office of the New York State Attorney General for its partnership in the government’s investigation and resolution of this important case.
“Home health aides work tirelessly to provide critical care for our most vulnerable neighbors, and they deserve to receive adequate and fair compensation for their hard work,” said Attorney General James. “White Glove cheated their employees, and they cheated the everyday New Yorkers whose tax dollars fund the Medicaid program. My office will always stand up against bad actors, and ensure all workers get fair pay for their work.”
The New York Wage Parity Act sets minimum wage and benefits requirements for LHCSAs that employ home care aides who render services to Medicaid recipients in New York City and in Nassau, Suffolk, and Westchester counties. Under the Wage Parity law, which is funded by Medicaid, aides are to be paid a minimum amount in total compensation. That compensation comes in the form of a base wage and a supplemental benefit. The base wage must be paid in cash. The benefit portion can include the value of vacation, holiday, and sick pay, among other things. It can also include health insurance, pension plans, or educational assistance. Today, the minimum amount of total compensation for an aide in New York City is $19.09 per hour; for Nassau, Suffolk, and Westchester Counties, the minimum is $18.22 per hour.
Home health aides perform all aspects of personal care for sick or homebound patients and frequently work long shifts lasting up to 24 hours. The tasks performed in caring for patients are demanding and can consist of assisting or lifting patients out of bed and bathing, dressing, grooming, preparing meals for and, in some instances, feeding them. Patients may suffer from physical or mental disorders that can make the work of the aides physically and emotionally taxing. In fact, it was in recognition of the difficulty of this work that New York passed the Wage Parity Act.
The Settlement
This Office, in coordination with the New York State Attorney General’s Office’s Medicaid Fraud Control Unit, commenced an investigation after whistleblowers alleged that certain LHCSAs had knowingly defrauded the federal government and New York State by underpaying home health aides in violation of the Wage Parity Act. The government’s investigation revealed that White Glove certified its compliance with the law, even though it had not paid its aides the requisite compensation, and sought and received reimbursement from Medicaid.
Under the terms of the agreement with the United States and New York State, White Glove has agreed to pay $505,616.98 to the United States and $758,425.47 to New York State for conduct that took place in the years 2012 to 2018.
In addition to the payments to resolve the government’s fraud claims, White Glove is now paying its aides the wages and benefits it was required to pay under the Wage Parity Act, including the wages that were owed to current and former aides in prior years. It has agreed to pay its aides $2 million for past due wages pursuant to a separate agreement it reached with the New York State Office of Attorney General Labor Bureau. Moreover, White Glove has admitted, acknowledged, and accepted responsibility for underpaying its home health aides by failing to pay Wage Parity Act rates.
Today’s settlement with White Glove follows similar settlements with the LHCSAs All American Homecare Agency and Crown of Life Care NY LLC, announced earlier this year.
The case is being handled by Assistant U.S. Attorneys Michael Blume and Sean Greene-Delgado of the Office’s Civil Division.
Russian Intelligence Agent Charged with Fraud and Money Laundering in Connection with Purchase and Use of Luxury Beverly Hills Real EstateRead the Press Release
A seven-count indictment was unsealed today in federal court in Brooklyn charging Andrii Derkach with conspiracy to violate the International Emergency Economic Powers Acts (IEEPA), bank fraud conspiracy, money laundering conspiracy and four counts of money laundering in connection with the purchase and maintenance of two condominiums in Beverly Hills, California. Derkach allegedly purchased the properties in violation of new U.S. sanctions imposed earlier this year and concealed his interest in the transactions. Derkach remains at large.
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, and Andrew Adams, Director of Task Force Kleptocapture announced the charges.
“The conduct of this Kremlin asset, who was sanctioned for trying to poison our democracy, has shown he is ready, willing, and capable of exploiting our banking system in order to advance his illicit goals. The U.S. will not be a safe haven where criminals, oligarchs or sanctioned entities can hide their ill-gotten gains or influence our elections,” stated United States Attorney Peace. “This Office, together with our law enforcement partners, will use every tool available to prosecute those who evade sanctions and abuse the U.S. financial system, and we will identify, freeze and seize criminal proceeds whenever and wherever possible.”
“Kremlin-backed Ukrainian politician and oligarch, Andrii Derkach, was sanctioned for his efforts to influence the 2020 U.S. Presidential election on behalf of the Russian Intelligence Services. While participating in a scripted Russian disinformation campaign seeking to undermine U.S. institutions, Derkach simultaneously conspired to fraudulently benefit from a Western lifestyle for himself and his family in the United States. The FBI will continue to use all the tools at its disposal to identify Russian intelligence operations, disrupt Russian information laundering networks, and bring to justice those who seek to engage in criminal conspiracies to undermine the integrity of U.S elections and evade U.S. sanctions,” stated Assistant Director-in-Charge Driscoll.
“Attempting to enjoy the safety, security, and freedoms of an open society, while secretly working to undermine that very society, is a hypocrisy that runs through every sanctions charge announced by the Task Force. It is a particularly egregious hypocrisy in the case of Andrii Derkach – sanctioned for attempts to undermine American democracy, while corruptly seeking to benefit from its protections,” said Task Force KleptoCapture Director Andrew C. Adams.
Since 1998, except for a hiatus from November 2006 to November 2007, Derkach was a member of the Verkhovna Rada (Rada), Ukraine’s Parliament. During his time in the Rada, Derkach was a member of the Party of Regions, a pro-Russia political party, which was the ruling party in Ukraine from 2010 until the 2014 Ukrainian Euromaidan Revolution. On September 10, 2020 the United States Department of Treasury’s Office of Foreign Asset Control (OFAC) sanctioned Derkach and several companies he controlled pursuant to Executive Order 13848, calling him “an active Russian agent for over a decade, maintaining close connections with the Russian Intelligence Services” who “waged a covert influence campaign” to undermine the 2020 U.S. presidential election.
As alleged in the indictment, beginning in 2013, Derkach and a co-conspirator devised a scheme to purchase and maintain two luxury condominiums in Beverly Hills while concealing his interest in the transactions from U.S. financial institutions. Specifically, Derkach used the services of a corporate nominee, a multi-tiered structure of California-based shell companies, and numerous U.S. bank and brokerage accounts. Using this framework, Derkach wired approximately $3.92 million to the nominee from overseas accounts in Latvia and Switzerland belonging to companies registered in the British Virgin Islands. The money was then used to pay $3.2 million in cash in the name of a corporate entity set up by the nominee, with Derkach having no visible affiliation with the purchase. The remaining $800,000 was invested in a brokerage account maintained by the nominee for Derkach’s benefit and used to pay expenses on the condominiums, including taxes, homeowners’ fees, and utilities. Because Derkach had fraudulently obscured details about his identity and involvement from the financial institutions holding the aforementioned bank and brokerage accounts, he prevented those financial institutions from moving funds into blocked accounts, and instead caused those financial institutions to engage in transactions involving blocked funds and transactions for the benefit of the condominiums, which were blocked property pursuant to the sanctions.
A parallel civil forfeiture action has been initiated to seize the condominiums and the remaining funds in the U.S. brokerage and bank accounts that Derkach controls.
If convicted, Derkach faces a maximum of 30 years’ imprisonment. The charges in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty.
The government’s case is being handled by the Office’s National Security and Cybercrime Section. Assistant United States Attorneys Artie McConnell and Jonathan E. Algor are in charge of the prosecution, with assistance from Trial Attorney Adam Small of the National Security Division’s Counterintelligence and Export Control Section and Litigation Analyst Ben Richmond. Assistant United States Attorney Madeline O’Connor of the Office’s Asset Recovery Section is handling forfeiture matters.
The investigation was coordinated through the Justice Department’s Task Force KleptoCapture, an interagency law enforcement task force dedicated to enforcing the sweeping sanctions, export controls, and economic countermeasures that the United States, along with its foreign allies and partners, has imposed in response to Russia’s unprovoked military invasion of Ukraine. Announced by Attorney General Merrick Garland on March 2, 2022 under the leadership of the Office of the Deputy Attorney General, the task force will continue to leverage all of the Department’s tools and authorities to combat efforts to evade or undermine the collective actions taken by the U.S. government in response to Russian military aggression.
The Defendant:
ANDRII DERKACH
Age: 55
Dnipropetrovsk, UkraineE.D.N.Y. Docket No.: 22-Cr-432 (DLI)
Active Russian Agent Andrii Derkach Indicted for Scheme to Violate Sanctions in the United StatesRead the Press Release
A seven-count indictment was unsealed today in federal court in Brooklyn charging Andrii Derkach, 55, of Ukraine, with conspiracy to violate the International Emergency Economic Powers Acts (IEEPA), bank fraud conspiracy, money laundering conspiracy, and four counts of money laundering in connection with the purchase and maintenance of two condominiums in Beverly Hills, California. Derkach allegedly concealed his interest in the transactions and violated sanctions imposed in 2020. Derkach remains at large. The charges and forfeiture action announced today include the first use of criminal and forfeiture powers targeting the concealment of ownership by senior foreign political officials, passed as part of the National Defense Authorization Act of 2021.
“The conduct of this Kremlin asset, who was sanctioned for trying to poison our democracy, has shown he is ready, willing and capable of exploiting our banking system in order to advance his illicit goals,” said U.S. Attorney Breon Peace for the Eastern District of New York. “The U.S. will not be a safe haven where criminals, oligarchs or sanctioned entities can hide their ill-gotten gains or influence our elections. This office, together with our law enforcement partners, will use every tool available to prosecute those who evade sanctions and abuse the U.S. financial system, and we will identify, freeze and seize criminal proceeds whenever and wherever possible.”
“Kremlin-backed Ukrainian politician and oligarch, Andrii Derkach, was sanctioned for his efforts to influence the 2020 U.S. Presidential election on behalf of the Russian Intelligence Services,” said Assistant Director in Charge Michael J. Driscoll of the FBI New York Field Office. “While participating in a scripted Russian disinformation campaign seeking to undermine U.S. institutions, Derkach simultaneously conspired to fraudulently benefit from a Western lifestyle for himself and his family in the United States. The FBI will continue to use all the tools at its disposal to identify Russian intelligence operations, disrupt Russian information laundering networks and bring to justice those who seek to engage in criminal conspiracies to undermine the integrity of U.S elections and evade U.S. sanctions.”
“Attempting to enjoy the safety, security and freedoms of an open society, while secretly working to undermine that very society, is a hypocrisy that runs through every sanctions charge announced by the Task Force,” said Task Force KleptoCapture Director Andrew C. Adams. “It is a particularly egregious hypocrisy in the case of Andrii Derkach – sanctioned for attempts to undermine American democracy, while corruptly seeking to benefit from its protections.”
According to the indictment filed in the Eastern District of New York, on or about Sept. 10, 2020, the U.S. Department of Treasury’s Office of Foreign Assets Control (OFAC) sanctioned Derkach for his efforts to influence the 2020 U.S. Presidential election. According to information publicly released by OFAC, Derkach was “an active Russian agent for over a decade, maintaining close connections with the Russian Intelligence Services,” who “waged a covert influence campaign” to undermine the 2020 Presidential election. As alleged, beginning in at least 2013 and continuing after Derkach’s OFAC designation, Derkach and a co-consiprator (CC-1) devised a scheme to purchase two luxury condominiums in Beverly Hills, California, (the Subject Condominiums) while concealing Derkach’s interest in the transactions from U.S. financial institutions. The scheme utilized a U.S.-based financial services professional (the Nominee). The Nominee assisted Derkach and CC-l in setting up and managing several corporate entities designed to hide Derkach’s ownership interest in the Subject Condominiums and related financial holdings. The Nominee understood that Derkach and CC-1 would occupy one of the Subject Condominiums, and the other would be used by Derkach’s children.
At the direction of Derkach and CC-1, the Nominee established two corporate entities in California. As part of the scheme, Derkach and CC-l misrepresented details about Derkach’s identity to the Nominee. Derkach and CC-l caused the Nominee to falsely represent ownership of funds and bank accounts to U.S. financial institutions, thereby deceiving those institutions into processing transactions related to, involving and on behalf of Derkach and his blocked property.
At all times relevant to this indictment, and since the date of his OFAC designation, Derkach has been aware of and actively working to evade the OFAC sanctions placed upon him. As alleged, on or about Sept. 10, 2020, the day that OFAC designated Derkach, Derkach posted a response on Facebook, stating the “decision was drawn up on a piece of paper by several congressman of [a U.S. political party] and inspired by representatives of the State Department.”
Moreover, in the years and months preceding his designation, the defendant spent significant time in the United States, including at the Subject Condominiums. In conducting that travel to, and spending time in, the United States, Derkach was actively involved in deceiving U.S. law enforcement and border authorities even prior to his SDN designation. For example, in December 2019 and February 2020, Derkach was in the United States to meet with U.S. persons and conduct media appearances. To obtain a U.S. visa, and to ostensibly attend meetings and conferences related to human rights issues in Ukraine, Derkach retained the services of a U.S.-based consulting firm (Firm-1). The written contract purported to be between Firm-l and a Ukrainian shipping company and did not refer to Derkach, notwithstanding Derkach’s direct involvement in the provision of services that the contract purported to reflect. In or about and between July 2018 and December 2018, Derkach paid Firm-l approximately $100,000. In a July 2018 email communication with Firm-l, Derkach’s representative expressed concern that, “given the fact that my client [Derkach] is a politically exposed person, as well as the statements he made concerning Ukraine’s interference into U.S. elections and the insider information we have in our possession,” the visa application process could be potentially complicated for Derkach.
Derkach, through the Nominee, continued to conduct U.S. financial transactions in support of his real estate holdings even after Sept. 10, 2020, the day that OFAC designated the defendant Derkach and added him to the SDN List. Because Derkach and CC-l had obscured details about Derkach’s identity and involvement from relevant financial institutions, Derkach and CC-1 succeeded for a time in conducting financial transactions valued at several hundred thousands of dollars in violation of OFAC’s sanctions.
If convicted, the defendant faces a maximum of 30 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Concurrent with today’s announcement, the U.S. Attorney’s Office for the Eastern District of New York has filed and announced a civil forfeiture suit naming the Subject Condominiums and two financial accounts as defendants in rem, seeking forfeiture of those properties on the basis of their involvement in, and status as proceeds of, criminal violations of the federal money laundering laws, the IEEPA, and federal law criminalizing the concealment of assets of senior foreign political figures.
U.S. Attorney Breon Peace for the Eastern District of New York, Task Force KleptoCapture Director Andrew C. Adams and Special Agent in Charge Michael J. Driscoll of the FBI New York Field Office made the announcement.
Assistant U.S. Attorneys Artie McConnell and Jonathan E. Algor for the Eastern District of New York are prosecuting the case, with assistance from Trial Attorney Adam Small of the National Security Division’s Counterintelligence and Export Control Section. Assistant U.S. Attorney Madeline O’Connor for the Eastern District of New York is handling the forfeiture matters. The Justice Department’s Office of International Affairs provided valuable assistance.
The investigation was coordinated through the Justice Department’s Task Force KleptoCapture, an interagency law enforcement task force dedicated to enforcing the sweeping sanctions, export controls, and economic countermeasures that the United States, along with its foreign allies and partners, has imposed in response to Russia’s unprovoked military invasion of Ukraine. Announced by the Attorney General on March 2 under the leadership of the Office of the Deputy Attorney General, the task force will continue to leverage all of the Department’s tools and authorities to combat efforts to evade or undermine the collective actions taken by the U.S. government in response to Russian military aggression.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
New York Diagnostic Testing Facility Owners Sentenced for Health Care Fraud SchemeRead the Press Release
Two New York diagnostic testing facility owners were sentenced today to three years in prison for their roles in a more than $18 million health care fraud scheme.
According to court documents, Tea Kaganovich, 50, and Ramazi Mitaishvili, 62, both of Brooklyn, are a married couple that co-owned several diagnostic testing facilities in Brooklyn. The couple paid over $18 million in kickbacks for the referral of beneficiaries who submitted themselves to diagnostic testing and other purported medical services. Kaganovich and Mitaishvili also falsely reported to the IRS that the illegal kickback payments were legitimate business expenses and therefore submitted tax forms that under-reported business income and claimed deductions to which they were not entitled.
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; Acting Special Agent in Charge Susan Frisco of the Department of Health and Human Services, Office of Inspector General’s (HHS-OIG) Office of Investigations; Assistant Director in Charge Michael J. Driscoll of the FBI New York Field Office; and Special Agent in Charge Thomas Fattorusso of the IRS Criminal Investigation (IRS-CI) New York Field Office made the announcement.
The HHS-OIG, FBI, and IRS-CI investigated the case.
Assistant Chief Debra Jaroslawicz and Trial Attorney Sarah Wilson Rocha of the Justice Department’s Fraud Section prosecuted the case. Assistant U.S. Attorney Tanisha Payne handled forfeiture matters.
The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, comprised of 15 strike forces operating in 24 federal districts, has charged more than 4,200 defendants who collectively have billed the Medicare program for more than $19 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with the Office of the Inspector General for the Department of Health and Human Services, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at https://www.justice.gov/criminal-fraud/health-care-fraud-unit.
Defendant Convicted of Bribing New York City Correction Officers to Smuggle Contraband into Rikers Island JailRead the Press Release
Today, a federal jury in Brooklyn convicted James Albert of conspiracy to violate the Travel Act and conspiracy to distribute controlled substances while he was incarcerated at the George R. Vierno Center at Rikers Island (GRVC) as part of a scheme to bribe correction officers to smuggle illegal drugs and other contraband into the jail for sale to other inmates. The verdict followed a four-day trial before United States District Judge Ann M. Donnelly. When sentenced, Albert faces a maximum of 15 years in prison.
Breon Peace, United States Attorney for the Eastern District of New York, announced the verdict.
“Today’s verdict holds the defendant accountable for conspiring with corrupt correction officers to facilitate his lucrative drug-selling business from which he generated tens of thousands of dollars from his Rikers Island jail cell. Such lawless conduct by the defendant and his co-conspirators undermines the orderly running of the institution and endangers the safety of other incarcerated individuals and Department of Correction personnel,” stated United States Attorney Peace. “This Office will continue working with our federal and local law enforcement partners to disrupt the flow of illegal narcotics and other contraband into correctional facilities.”
Mr. Peace thanked the Federal Bureau of Investigation, New York Field Office, and the New York City Department of Investigation for their outstanding investigative work on the case.
As proven at trial, while he was incarcerated at GRVC between February and June 2019, Albert orchestrated a scheme to bribe at least two officers to bring marijuana, suboxone strips, and other contraband into GRVC for sale and distribution to other inmates. Albert also enlisted his wife, co-defendant Celena Burgess, to receive money from inmates and pay thousands of dollars in bribes to the correction officers on the defendant’s behalf using the electronic money-transfer platform Cash App.
The government’s evidence included testimony from Patrick Legerme, a former New York City Correction Officer who accepted bribes from Albert to smuggle marijuana into the jail and described how he smuggled drugs into the jail. Legerme pleaded guilty to conspiring to accept bribes and is awaiting sentencing. The government’s evidence also included testimony from Burgess that she managed the Cash App transactions for the defendant and received payments from other inmates for the items that Albert had sold them. Burgess testified as part of a deferred prosecution agreement with the government. In addition to financial and phone records and expert testimony, the jury heard recorded telephone calls in which inmates used coded language in their conversations. For example, “Oakland Raider jerseys” referred to marijuana, “oranges” was code for suboxone strips, and “Pink Panties” referred to a correction officer.
The government’s case is being prosecuted by Assistant United States Attorneys Laura Zuckerwise, Joy Lurinsky and Andrew D. Reich with the assistance of Paralegal Specialist Rachel Friedman.
The Defendant:
JAMES ALBERT
Age: 45
Comstock, New YorkE.D.N.Y. Docket No. 20-CR-64 (AMD)
Corporate Insider Sentenced to 10 Years' Imprisonment for Conspiring with Long Island Boiler Room to Pump and Dump Stock on Unsuspecting Elderly InvestorsRead the Press Release
Earlier today, in federal court in Central Islip, Jeffrey Chartier, a former registered broker who participated in a criminal conspiracy to promote and manipulate the price of shares in publicly traded companies, was sentenced by United States District Judge Joanna Seybert to 10 years’ imprisonment for conspiracy to commit securities fraud, securities fraud, conspiracy to commit wire fraud, money laundering conspiracy, and money laundering. The Court also ordered Chartier to pay $1,022,398.89 in forfeiture and $6,083,603.45 in restitution. Chartier and co-defendant Lawrence Isen were convicted of the charges by a federal jury in March 2020 following a six-week trial. Isen is awaiting sentencing.
Breon Peace, United States Attorney for the Eastern District of New York, and Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation (FBI), New York Field Office, announced the sentence.
“Jeffrey Chartier and his confederates lined their pockets with the lifetime savings of hard-working citizens they victimized all around the country,” stated United States Attorney Peace. “Today’s sentences should serve as a reminder to so-called white-collar criminals that this Office will hold them accountable for their selfish actions and the devastation they inflict upon the lives and families of others.”
Mr. Peace also thanked the Federal Bureau of Investigation, New York Field Office, for its hard work and dedication in leading the investigation, and expressed his appreciation to the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority, Inc., Criminal Prosecution Assistance Group (FINRA CPAG), for their cooperation and assistance.
From 2014 to 2016, Isen, Chartier and others working with a Melville, New York-based boiler room artificially inflated the price and trading volume of stock in struggling companies with poor prospects, and off-loaded it onto unsuspecting victims who were often elderly and vulnerable.
The evidence at trial proved that from approximately 2014 to 2016, Chartier paid the boiler room to illegally prop up the stock price of National Waste Management Holdings, Inc., trading under the ticker symbol NWMH, and CES Synergies, Inc., trading under ticker symbol CESX, through manipulative trading, and also to dump his own NWMH and CESX shares on innocent investors through illegal matched trades. NWMH and CESX were previously profitable private companies that were each run by individuals seeking to retire. Chartier persuaded them to pay him in large blocks of stock to take their companies public on promises that doing so would sustain the companies for the future. Instead, Chartier hired the boiler room, which fraudulently inflated these companies’ share prices using high-pressure sales tactics, and then dumped his own shares through matched trades, which caused the companies’ stock prices to plummet. As part of the sentencing, the Court ordered the repatriation of Chartier’s remaining shares in NWMH and CESX.
The evidence at trial showed that Isen colluded with crooked investors, both in the United States and overseas, to dump large volumes of shares in Hydrocarb Energy Corp., trading under the ticker symbol HECC, and Intelligent Content Enterprises, Inc. trading under the ticker symbol ICEIF, on the victims. He did so by, among other things, connecting the investors with the boiler room; negotiating the terms of the arrangements between them; and managing the relationships between them. Isen assisted the boiler room in its illegal cold call campaigns that used lies and high-pressure sales tactics to lure victims, by, among other things, transferring money and stock required by the boiler room for the campaigns; working with the boiler room to fill the duped victims’ orders with Isen’s crooked investors’ stock; and creating fraudulent stock purchase agreements, consulting agreements and invoices to cover up the illegal conduct.
The government has calculated that the conspiracy’s market manipulation fraudulently inflated the stock price of HECC, ICIEF, NWMH and CESX and one other company by more than $147 million. All 16 defendants charged in this case have been convicted.
Assistant United States Attorneys Whitman G.S. Knapp and Kaitlin T. Farrell are in charge of the prosecution. Assistant United States Attorney Tanisha Payne of the Office’s Asset Recovery Section is handling forfeiture matters in the case.
The Defendants:
JEFFREY CHARTIER
Age: 59
Sunny Isles, FloridaLAWRENCE ISEN
Age: 69
San Diego, CaliforniaDocket No. 17-CR-372 (JS)
Former Long Island School Official Pleads Guilty in Kickback SchemeRead the Press Release
Earlier today, at the federal courthouse in Central Islip, Sharon Gardner, the former Director of Food Services for the Hempstead Union Free School District (“HUFSD”), pleaded guilty to conspiracy to commit honest services wire fraud in connection with her participation in a kickback scheme. Gardner’s co-defendant, Maria Caliendo, the owner of food service providers Smart Starts NY, Inc. (“Smart Starts”) and Prince Umberto’s restaurant in Franklin Square, previously pleaded guilty on October 27, 2022 to the same offense and is awaiting sentencing. Today’s proceeding was held before United States District Judge Joanna Seybert. When sentenced, the defendants each face up to 20 years in prison. As part of their respective pleas, Gardner has agreed to forfeit approximately $120,000 and Caliendo has agreed to forfeit approximately $160,000.
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); Bethanne M. Dinkins, Special Agent-in-Charge, U.S. Department of Agriculture, Office of Inspector General (USDA-OIG); Terry Harris, Special Agent in Charge, U.S. Department of Education Office of Inspector General, Eastern Regional Office; Thomas Fattorusso, Special Agent-in-Charge, Internal Revenue Service-Criminal Investigation, New York; Anne T. Donnelly, Nassau County District Attorney; and Thomas P. DiNapoli, New York State Comptroller, announced the guilty plea.
“Gardner abused her position of trust as a school official in order to enrich herself with kickbacks she used to pay for overseas vacations and home furnishings. Now she will face the consequences for her greed,” stated United States Attorney Peace. “This Office will continue to vigorously investigate and prosecute corrupt officials who illegally profit from our public institutions.”
“As today's guilty plea demonstrates, the defendant exploited her role in order to take advantage of the taxpayers for her own personal enrichment. The FBI and our Law Enforcement partners are committed to fighting public corruption and ensuring that those officials who abuse the trust placed in them are held accountable for their actions in the criminal justice system,” stated FBI Assistant Director-in-Charge Driscoll.
USDA-OIG Special Agent-in-Charge Dinkins stated, “The School Breakfast Program (SBP) was created to provide food and nutrition to those who truly need this assistance. Those who are involved in fraud and abuse of USDA feeding programs will be investigated by our office to the fullest extent. This joint investigation identified individuals who sought to profit from the SBP through illegal schemes. The USDA Office of Inspector General will continue to dedicate investigative resources, working with our law enforcement and prosecutorial partners, in order to protect the integrity of these programs and bring to justice those who commit fraud.”
“I am proud of the work of OIG Special Agents and our law enforcement partners in holding Ms. Gardner accountable for her criminal actions,” stated DOE-OIG Special Agent-in-Charge Harris. “We will continue to aggressively pursue those who misappropriate federal funds for their own selfish purposes. America’s students and taxpayers deserve nothing less.”
“This defendant leveraged her power as a Hempstead School District official to line her own pockets and those of her co-defendant for nearly two years,” stated Nassau County District Attorney Donnelly. “Gardner orchestrated the scheme, shirking her responsibilities to follow a legitimate bidding process and handing over the contract to Maria Caliendo, a local restaurant owner who had previously hosted Gardner’s holiday parties. Public funds are precious and finite. Individuals who exploit their positions to access those funds for their own financial gain will be found and prosecuted. I thank our law enforcement partners for their diligent work ensuring these defendants are now held accountable for their crimes.”
“Gardner exploited her position and betrayed the students, parents and taxpayers of the Hempstead School District to enrich herself,” stated Comptroller DiNapoli. “I thank United States Attorney Breon Peace, Nassau County District Attorney Anne Donnelly, the FBI and the Inspectors General for the Departments of Agriculture and Education for their partnership in holding Gardner accountable for her actions.”
According to court filings and facts presented at the plea proceeding, Gardner, in her capacity as the Director of Food Services for HUFSD, helped secure lucrative contracts for Caliendo’s company, Smart Starts, to provide prepackaged breakfast meals for Hempstead public school students. In exchange, Caliendo kicked back a portion of the contract proceeds totaling more than $100,000 to Gardner through fraudulent payroll deposits and other payments. To conceal the illegal nature of the arrangement, those payments were deposited into a bank account that was created in the name of one of Gardner’s family members. The kicked back funds were spent by Gardner on international vacations, a leased vehicle, and home furnishings. Approximately $13,000 in kicked back funds were also withdrawn by Gardner in cash from ATMs located near her home and workplace.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorneys Anthony Bagnuola and Charles P. Kelly are in charge of the prosecution.
The Defendants:
SHARON GARDNER
Age: 56
Lindenhurst, New YorkMARIA CALIENDO
Age: 57
Elmont, New YorkE.D.N.Y. Docket No. 22-CR-229 (JS)
H-2 Cartel Lieutenant Extradited from Mexico to Face Narcotics Trafficking and Firearms ChargesRead the Press Release
Carlos Silva Arellano, also known as “Bolas,” was arraigned today before United States Magistrate Judge Lois Bloom 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 extradited from Mexico to the United States on November 23, 2022. Silva Arellano was ordered detained pending trial.
Breon Peace, United States Attorney for the Eastern District of New York, and Anne Milgram, Administrator, United States Drug Enforcement Administration (DEA), announced the extradition and arraignment.
“As alleged, the defendant, a trusted member of a notoriously violent drug cartel, participated in the importation of thousands of kilograms of dangerous drugs into our country for sale in our communities. He will now answer to the American justice system for his role in the crimes alleged,” stated United States Attorney Peace. “Our Office is committed to working with our international partners to dismantle destructive drug trafficking organizations, wherever they are.”
Mr. Peace extended his appreciation to the DEA’s Los Angeles and Mexico City, Mexico offices, the United States Marshals Service, the United States Department of State, the Department of Justice’s Office of International Affairs and the Government of Mexico.
“The H-2 Cartel and its associates have smuggled multi-ton quantities of heroin, cocaine, and methamphetamine into our country for years, using intimidation and violence to build and protect their criminal empire,” said DEA Administrator Milgram. “The continuous flood of addictive and dangerous drugs into the United States remains a threat to the safety and health of our communities. Today’s extradition highlights the important work of DEA, alongside our U.S. and global partners, to bring dangerous drug traffickers to justice.”
According to the indictment and court filings, the defendant was a member of the H-2 Cartel, a violent Mexican drug trafficking organization based in Nayarit and Sinaloa, Mexico, that was previously led by Juan Francisco Patron Sanchez. The H-2 Cartel had numerous distribution cells in the United States, including in Los Angeles, Las Vegas, Ohio, Minnesota, North Carolina and New York. The DEA estimates that between January 2013 and February 2017, the H-2 Cartel distributed, on a monthly basis, hundreds of kilograms of heroin, cocaine and methamphetamine, and thousands of kilograms of marijuana into the United States and earned millions of dollars in illegal proceeds in return. In furtherance of its drug trafficking operation, the H-2 Cartel used firearms and physical violence and is associated with numerous homicides.
Between June 2013 and December 2016, the defendant allegedly conspired with the H-2 Cartel to smuggle large quantities of cocaine, heroin, methamphetamine and marijuana from Mexico into the United States and distribute the drugs throughout the country, including in the Eastern District of New York. The defendant allegedly established heroin distribution networks on behalf of the H-2 Cartel, coordinating with and directing several individuals to receive and sell large amounts of heroin.
The extradition of Silva Arellano 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 Craig R. Heeren, Ryan C. Harris and Andrew D. Wang are in charge of the prosecution.
The Defendant:
CARLOS SILVA ARELLANO
Age: 36
MexicoE.D.N.Y. Docket No. 16-CR-241 (S-2) (CBA)
Long Island MS-13 Gang Member Sentenced to More Than 27 Years in Prison for Murder of Brentwood Teen and Subsequent ShootingRead the Press Release
Earlier today, in federal court in Central Islip, Nelson Argueta-Quintanilla, also known as “Mendigo”, a member of the violent transnational criminal organization La Mara Salvatrucha, also known as the “MS-13,” was sentenced by United States District Judge Gary R. Brown to 327 months in prison for his role in the murder of Oscar Acosta, whose body was found on the grounds of an abandoned psychiatric hospital in Brentwood, and a subsequent attempt to shoot and kill rival gang members on Lukens Avenue in Brentwood. The defendant, a self-admitted member of the Sailors Locos Salvatruchas Westside (Sailors) clique, pleaded guilty in September 2021 to racketeering and admitted to his involvement in the Acosta murder and Lukens Avenue shooting, as well as narcotics trafficking on behalf of the MS-13.
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 Rodney K. Harrison, Commissioner, Suffolk County Police Department (SCPD), announced the sentence.
“Demonstrating the defendant’s complete disregard for human life, today’s sentence is a fitting punishment for a brutal murder followed by another reckless shooting,” stated U.S. Attorney Peace. “This Office and our law enforcement partners remain committed to holding violent actors, including gang members, accountable for the fear, destruction, and death they bring to our communities.”
Argueta-Quintanilla and other MS-13 members targeted Acosta for death because he previously had associated with the MS-13, but later began associating with the rival 18th Street gang. On April 29, 2016, a group of MS-13 members, including the defendant, gathered in a wooded area near an elementary school in Brentwood where they learned a fellow MS-13 member was meeting Acosta to smoke marijuana. When Acosta arrived in the woods, the defendant and the other gang members repeatedly struck Acosta with a large tree branch, knocking him unconscious. They then called the leader of the Sailors clique who arrived at their location with additional members of the gang. The MS-13 members decided to move Acosta to a more isolated area. They tied his hands and feet together and carried Acosta into the trunk of a car. Two cars of gang members, one with Acosta’s body in the trunk, ultimately drove to a secluded wooded area in Brentwood behind several warehouses and adjacent to the grounds of an abandoned psychiatric hospital. Once they arrived, the MS-13 members carried Acosta, still alive, into the woods. Once in the woods, the defendant and three other MS-13 members took turns striking Acosta with a machete. The MS-13 members then put Acosta in a shallow grave, covered him with dirt, and fled the area. On September 16, 2016, while searching for the victim of a different MS-13 murder, law enforcement found Acosta’s body, which was in a shallow grave, and his hands and feet were still bound.
Separately, on the evening of August 10, 2016, the defendant agreed with other Sailors clique members to drive around Brentwood hunting for rival gang members to kill. After observing a number of men standing outside of a house on Lukens Avenue, who they believed were members of the rival gang Goon Squad, the defendant and another MS-13 member, armed with .45 and .40 caliber handguns, respectively, got out of their car, approached the house and opened fire at the group. The defendant fired multiple shots with the .45 caliber handgun. One of the .40 caliber bullets fired by the other MS-13 member traveled through the bedroom wall of an adjacent house and struck the headboard of an elderly woman’s bed. Fortunately, no one was injured in the shooting.
On May 2, 2018, the defendant was arrested on a federal warrant in connection with this case. At the time, he was in immigration custody and had been since June 27, 2017.
Today’s sentencing is the latest accomplishment in a series of federal prosecutions by the USAO-EDNY targeting members and associates of the MS-13, a violent, transnational criminal organization. The MS-13’s leadership is based in El Salvador, Honduras, Guatemala and Mexico, but the gang has thousands of members across the United States. With numerous branches, or “cliques,” the MS-13 is the most violent criminal organization on Long Island. Since 2003, hundreds of MS-13 members, including dozens of clique leaders, have been convicted on federal felony charges in the Eastern District of New York. A majority of those MS-13 members have been convicted on federal racketeering charges for participating in murders, attempted murders, and assaults. Since 2010, this Office has obtained indictments charging MS-13 members and associates with carrying out more than 60 murders in the district, and has convicted dozens of MS-13 leaders, members, and associates in connection with those murders. These prosecutions are the product of investigations led by the FBI’s Long Island Gang Task Force, which is comprised of agents and officers of the FBI, SCPD, Nassau County Police Department, Nassau County Sheriff’s Department, Suffolk County Probation Office, Suffolk County Sheriff’s Office, New York State Police, Hempstead Police Department, Rockville Centre Police Department, and New York State Department of Corrections and Community Supervision.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorneys John J. Durham, Paul G. Scotti, Justina L. Geraci, and Megan E. Farrell are in charge of the prosecution.
The Defendant:
NELSON ARGUETA-QUINTANILLA (also known as “Mendigo”)
Age: 25
Residence: formerly of Central Islip and Brentwood, New YorkE.D.N.Y. Docket No.: 16-CR-403 (S-7) (GRB)
Four Members and Associates of the Folk Nation Gangster Disciples Convicted of Gang-Related Shootings in BrooklynRead the Press Release
Earlier today, a federal jury in Brooklyn convicted Lorenzo Bailey, Quincy Battice, Jean Fremont, and Oluwagbenga Agoro on multiple counts of a superseding indictment charging them with conspiracy to murder rival gang members in-aid-of racketeering, attempted murder in-aid-of racketeering, attempted assault with a dangerous weapon in-aid-of racketeering, assault with a dangerous weapon in-aid-of racketeering and possessing, brandishing and discharging a firearm during a crime of violence in connection with multiple shootings in Brooklyn in November 2020. Bailey, Battice, Fremont, and Agoro are all members or associates of the Flatbush-based Folk Nation Gangster Disciples, also known as “GD.” Bailey and Fremont are also leaders of the No Love City (NLC) subset of GD, with Fremont serving on NLC’s five-member “Steering Committee,” and Bailey serving as the set’s “Chief of Security.” Additionally, Agoro was convicted of threatening physical violence in connection with a plan to commit extortion. The verdicts followed a five-week trial before United States District Judge William F. Kuntz, II. When sentenced, the defendants each face a maximum of life in prison; Agoro and Fremont face mandatory minimum sentences of 20 years, and Bailey and Battice face mandatory minimum sentences of 10 years. Four other participants in the shootings previously pleaded guilty.
Breon Peace, United States Attorney for the Eastern District of New York, announced the verdict.
“In senseless retaliation for the theft of a gold chain, our Brooklyn communities were terrorized by gangs on a violent gun rampage that left three victims wounded in four separate shootings over a two-day period,” states United States Attorney Peace. “The residents of this district deserve to walk the streets of our communities without fear of falling victim to gun violence. Today’s verdict sends a resounding message that defendants who display a callous disregard for human life and safety will be met with the full force of the law and brought to justice.”
Mr. Peace thanked the Federal Bureau of Investigation, New York Field Office; Kings County District Attorney’s Office, and the New York City Police Department (NYPD) for their assistance in the case.
As proven at trial, the defendants participated in four shootings over a two-day period stemming from the snatching of a gold chain and pendant from Fremont by rival gang members following the filming of a music video in Brooklyn. News of the theft spread online, along with photos of the stolen necklace. In response to ridicule posted on social media about the theft, the defendants plotted retaliation against rival gang members.
The November 2020 Shootings
As proven at trial, on November 7 and 9, 2020, Agoro, Bailey, Battice, Fremont and others carried out four separate drive-by shootings in Canarsie, Prospect Park South, and Brownsville, during which three victims were wounded. In the first November 7 shooting, Agoro, Bailey, Battice, Fremont and others drove to Canarsie, where they shot at a group of individuals. The defendants then drove back to one of the shooter’s residences, before setting out again for a second shooting in Canarsie, during which two individuals were wounded in their legs. On November 9, 2020, Agoro and others drove to Prospect Park South, where they shot at a group of individuals but did not hit anyone. Later that same day, Agoro, Fremont and others drove to Brownsville for another shooting, where one 18-year-old victim was shot in the shoulder and grazed in her back.
In March 2021, Agoro went to a bodega in Flatbush. He and another individual then displayed a gun and threatened to kill the bodega clerk unless the clerk allowed the defendant and his friends to take merchandise from the store for free.
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 investigations that led to these prosecutions and convictions were conducted by the FBI/NYPD Safe Streets Task Force and NYPD Gun Violence Suppression Division.
The government’s case is being handled by the Office’s Organized Crime and Gangs Section. Assistant United States Attorneys Jonathan Siegel, Dana Rehnquist, and Sophia Suarez are in charge of the prosecution with the assistance of paralegal Celine Laruelle.
The Defendants:
LORENZO BAILEY (also known as “Renzo” and “St. Clair Bailey”)
Age: 33
Atlanta, GeorgiaQUINCY BATTICE (also known as “Hush Dinero” and “George Ayala”)
Age: 33
Atlanta, GeorgiaJEAN FREMONT (also known as “Juno” and “Bigga Twirl”)
Age: 31
Brooklyn, New YorkOLUWAGBENGA AGORO (also known as “Gee Banga”)
Age: 22
Brooklyn, New YorkE.D.N.Y. Docket No. 20-CR-293 (WFK)
Three Former NYPD Police Officers Plead Guilty to Bribery SchemeRead the Press Release
Earlier today, in federal court in Brooklyn, James Davneiro, a former New York City Police Department (NYPD) officer, pleaded guilty to conspiring to participate in a scheme to steer vehicles damaged in automobile accidents to a licensed tow trucking and automobile repair business company in contravention of NYPD’s Directed Accident Response Program (DARP) in exchange for thousands of dollars in bribes (the “Tow Truck Scheme”). On November 15, 2022, former NYPD officer Michael Perri pleaded guilty to conspiring to participate in the Tow Truck Scheme. On November 16, 2022, former NYPD officer Giancarlo Osma pleaded guilty to conspiring to participate in the Tow Truck Scheme.
At the time that they participated in the Tow Truck Scheme, Davneiro and Osma were NYPD officers assigned to the 107th Precinct in Queens, New York. Perri was also an NYPD officer assigned to the 107th Precinct at the outset of the scheme, but subsequently retired in June 2020 and began operating a licensed tow trucking and automobile repair business that received the damaged vehicles pursuant to the Tow Truck Scheme. Davneiro resigned from the NYPD in November 2021 and Osma resigned on November 16, 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, NYPD, announced the guilty pleas.
“These three officers abused the public’s trust and disgraced their NYPD badges by lining their pockets with bribes,” stated United States Attorney Breon Peace. “This Office will continue working closely with our law enforcement partners to vigorously investigate and prosecute corruption by those who are sworn to enforce and uphold the law.”
“The investigators of our Internal Affairs Bureau left no stone unturned in this case because there is zero tolerance in the NYPD for corruption of any kind,” said NYPD Commissioner Sewell. “We worked tirelessly in this case, alongside our partners in the Federal Bureau of Investigation and the United States Attorney’s Office, to ensure that those who swore to serve and protect the public but violate that trust face severe consequences.”
According to court filings and facts presented at the plea proceeding, between May 2020 and May 2021, Davneiro and Osma received thousands of dollars of bribe payments from Perri in exchange for steering vehicles damaged in automobile accidents to a licensed tow trucking and automobile repair business operated by Perri, instead of using the NYPD’s DARP, as legally required. DARP requires the NYPD to identify appropriate licensed tow trucking and automobile repair businesses to respond to automobile accident scenes and remove damaged vehicles.
Today’s plea took place before United States District Judge Rachel P. Kovner. When sentenced, each of the defendants faces up to five years in prison. As part of their respective pleas, Davneiro has agreed to forfeit $25,000, Osma has agreed to forfeit approximately $26,011, and Perri has agreed to forfeit approximately $158,277.
The government’s case is being handled by the Office’s Public Integrity Section. Assistant United States Attorney Ryan C. Harris is in charge of the prosecution.
The Defendants:
JAMES DAVNEIRO
Age: 43
Bayside, New YorkGIANCARLO OSMA
Age: 40
Deer Park, New YorkMICHAEL PERRI
Age: 33
East Islip, New YorkE.D.N.Y. Docket No. 21-CR-508 (RPK)
In a Landmark Ruling, Mexican Court Upholds U.S. Forfeiture Order Authorizing Seizure of Drug Cartel Leader's Real EstateRead the Press Release
For the first time, a Mexican court has invoked its new civil forfeiture law to authorize the forfeiture of real property located in and around Guadalajara, Mexico pursuant to a request for mutual legal assistance from the United States. The forfeiture represents the United States’ groundbreaking use of Mexico’s new statute to divest drug cartel leader Rafael Caro Quintero of ill-gotten gains. Caro Quintero is indicted in the Eastern District of New York for leading a continuing criminal enterprise and related crimes. He is currently in custody in Mexico and extradition proceedings are ongoing.
The forfeited properties, described in the civil forfeiture order issued by U.S. District Judge Eric N. Vitaliano on April 15, 2021, were purchased by Rafael Caro Quintero with drug proceeds generated by the Caro Quintero drug trafficking organization, an affiliate of the Mexican organized crime syndicate known as the Sinaloa Cartel.
Breon Peace, United States Attorney for the Eastern District of New York, and Anne Milgram, Administrator, United States Drug Enforcement Administration (DEA), announced the seizure and forfeiture order of the Mexican Court.
“This forfeiture sends a powerful message to drug kingpins in Mexico and elsewhere that there are no boundaries to prosecuting bad actors and locating their ill-gotten assets wherever they are in the world,” stated United States Attorney Peace. “This Office will continue working with our law enforcement partners to take the economic gain out of crime through all available resources, including asset forfeiture.”
Mr. Peace extended his appreciation to the DEA New York Division Organized Crime and Drug Enforcement Strike Force, as well as the DEA Raleigh Resident Office, the DEA Los Angeles Office and the DEA Mexico City Country Office for their assistance with the case.
“For over thirty years, the men and women of the DEA have worked tirelessly to bring Rafael Caro Quintero to justice for his violent and ruthless acts,” said Administrator Milgram. “Today’s order— authorizing the forfeiture of Caro Quintero’s properties in Mexico—demonstrates that DEA agents will follow the evidence wherever it leads to hold drug traffickers fully accountable for their deadly crimes.”
According to the forfeiture complaint, between January 1980 and March 2015, the Caro Quintero drug trafficking organization was involved in the transportation of multi-ton quantities of marijuana, multi-kilogram quantities of methamphetamine and multi-kilogram quantities of cocaine from Mexico to the United States. As part of its investigation, law enforcement learned that Caro Quintero used proceeds from the sale of illegal narcotics to purchase real estate in and around his home area of Guadalajara. Caro Quintero allegedly placed the properties in the names of family members to conceal his ownership of the properties and use of illegal proceeds to purchase them, and to prevent Mexican authorities from seizing them.
The government’s case is being handled by the Office’s Asset Recovery Section and International Narcotics and Money Laundering Section. Assistant United States Attorney Brendan G. King is in charge of the forfeiture action.
The Department of Justice’s Office of International Affairs provided critical assistance in this case. The Department also appreciates the significant cooperation and assistance provided by the Mexican authorities.
E.D.N.Y. Docket No. 19-CV-5748 (ENV)
Defendant Sentenced to 20 Months in Prison for Stalking R. Kelly Victim and Her MotherRead the Press Release
Earlier today, in federal court in Brooklyn, Donnell Russell was sentenced by United States District Judge Ann M. Donnelly to 20 months’ imprisonment for his participation in a scheme to harass, intimidate, and cause substantial emotional distress to Jane Doe, a victim in the Eastern District of New York racketeering case against Robert Sylvester Kelly, also known as “R. Kelly,” and Jane Doe’s mother. Russell, a self-described manager, advisor and friend of Kelly, harassed and threatened Jane Doe and her mother after Jane Doe filed a civil lawsuit against R. Kelly. Russell continued his harassment campaign after it was clear that Jane Doe was a victim in Kelly’s criminal case in this District and would likely testify against Kelly.
Breon Peace, United States Attorney for the Eastern District of New York, announced the sentence.
“For more than a year, the defendant engaged in a vicious campaign to harass, humiliate and threaten the victim in order to force her to dismiss her lawsuit against R. Kelly and stop speaking publicly about him,” stated United States Attorney Peace. “The punishment meted out to the defendant today is a victory for crime victims, particularly those of sexual assault and abuse, who are often reluctant to come forward to law enforcement or pursue legal recourse, given the trauma and fear of retaliation associated with publicly discussing their experiences.”
Mr. Peace expressed his thanks to the Homeland Security Investigations, New York, for its outstanding investigative work on the case.
Between November 2018 and February 2020, Russell threatened to reveal sexually explicit photographs of Jane Doe and to publicly reveal her sexual history if she did not withdraw her lawsuit against Kelly. In November 2018, Russell caused a letter, with attachments, purportedly written by Kelly, to be mailed to Jane Doe’s lawyer at the time. The attachments included cropped nude photographs of Jane Doe with the following text: “the next two pictures have been cropped for the sake of not exposing her extremities to the world, yet!!!” In December 2018, Russell, using his alias “Colon Dunn,” sent a series of text messages to Jane Doe and her mother, which contained the same photographs of Jane Doe, and stating “Just a sample. We will seek criminal charges. You’ve been warned,” as well as “Publishing soon” and “[T]his is Colon.”
On January 3, 2019, Russell sent additional text messages to Jane Doe and her mother, stating, “Pull the plug or you will be exposed.” On January 6, 2019, Russell, using the Colon Dunn alias, created a Facebook Page named “Surviving Lies,” a play on the title of Lifetime’s “Surviving R Kelly” documentary, and posted screen shots of text messages between Kelly and Jane Doe, which contained the same sexually explicit photographs of Jane Doe. In late January 2020, Russell appeared on two live interviews with “vloggers” supporting Kelly and discussed Kelly’s legal troubles, which were streamed live on the internet via YouTube. Russell again displayed the same sexually explicit photographs of Jane Doe and broadcast them publicly over the internet.
The government’s case is being handled by the Office’s Civil Rights Section. Assistant United States Attorney Anna Karamigios is in charge of the prosecution.
The Defendant:
DONNELL RUSSELL (also known as “Don Russell” and “Colon Dunn”)
Age: 47
Chicago, ILE.D.N.Y. Docket No. 20-CR-427 (AMD)