Eastern District of New York
Press releases recorded for this federal judicial district.
Two Russian Nationals Charged with Running Massive E-Book Piracy WebsiteRead the Press Release
Earlier today, in federal court in Brooklyn, an indictment and a complaint were unsealed charging Russian nationals Anton Napolsky and Valeriia Ermakova with criminal copyright infringement, wire fraud and money laundering for operating Z-Library, an online e-book piracy website. The pair was arrested on November 3, 2022 in Cordoba, Argentina at the request of the United States. At the same time, Z-Library’s network of online domains was also taken offline and seized by the U.S. government, pursuant to a court order that was also unsealed today.
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 arrests and charges.
“As alleged, the defendants profited illegally off work they stole, often uploading works within mere hours of publication, and in the process victimized authors, publishers and booksellers,” stated United States Attorney Peace. “This Office is committed to protecting the intellectual property rights that enable creative and artistic expression, and holding individuals accountable for threatening those rights.”
“The defendants are alleged to have operated a website for over a decade whose central purpose was providing stolen intellectual property, in violation of copyright laws. Intellectual property theft crimes deprive their victims of both ingenuity and hard-earned revenue. The FBI is determined to ensure those willing to steal and profit from the creativity of others are stopped and made to face the consequences in the criminal justice system,” stated FBI Assistant Director-in-Charge Driscoll.
As alleged in the indictment and court filings, Z-Library bills itself as “the world’s largest library” and claims to offer more than 11 million e-books for download. Z-Library, which has been active since approximately 2009, offers e-book files in a variety of file formats, stripped of their copyright protections, and encourages users to upload and download titles. Many of the e-books offered by Z-Library are protected intellectual property for which authors hold copyrights and publishers hold exclusive distribution rights, and which Z-Library has no right or license to distribute, and which are available elsewhere only with anti-circumvention measures applied. As such, a central purpose of Z-Library is to allow users to download copyrighted books for free in violation of U.S. law. In addition to its homepage, Z-Library operates as a complex network of approximately 249 interrelated web domains. As part of this action, those domains were taken offline and seized by the U.S. government.
The charges in the indictment are allegations, and the defendants are presumed innocent unless and until proven guilty.
The government’s case was initiated by the Office’s Cyber Crime Task Force. Assistant United States Attorney Chand Edwards-Balfour, Alexander Mindlin, Antoinette N. Rangel and Kaitlin Farrell are prosecuting the case. Brian Morris of the Office’s Asset Recovery Section is handling forfeiture matters.
The Justice Department’s Office of International Affairs and Computer Crime and Intellectual Property Section, the FBI’s Legal Attachés abroad and foreign authorities in multiple countries provided critical assistance in this case. In particular, the Office extends its appreciation to the Argentine authorities for their assistance in the capture of Napolsky and Ermakova.
Multiple organizations representing the victim authors and publishers also provided critical assistance in this case. The Office extends its particular appreciation to The Authors Guild in New York and The Publishers Association in London for their assistance. The Office also extends its appreciation to the National Cyber-Forensics & Training Alliance for its assistance in the domain takedown.
The Defendants:
ANTON NAPOLSKY
Age: 33
St. Petersburg, RussiaVALERIIA ERMAKOVA
Age: 27
St. Petersburg, RussiaE.D.N.Y. Docket No. 22-CR-525 (NM)
Two Pharmacy Owners Plead Guilty in COVID-19 Money Laundering and Health Care Fraud CaseRead the Press Release
Two New York men pleaded guilty to conspiracy to commit money laundering for using New York-area pharmacies to submit false and fraudulent claims to Medicare and then laundering the criminal proceeds.
Arkadiy Khaimov, 39, of Forest Hills, pleaded guilty today to one count of conspiracy to commit money laundering. Peter Khaim, 42, also of Forest Hills, pleaded guilty to one count of conspiracy to commit money laundering on Nov. 3.
According to court documents, Khaim and Khaimov engaged in a complex money laundering conspiracy to launder the proceeds of a fraudulent health care scheme involving over a dozen New York-area pharmacies that they and their co-conspirators owned and controlled. Specifically, Khaim and Khaimov used the New York pharmacies to submit millions of dollars in fraudulent claims to Medicare, including during the COVID-19 pandemic. These fraudulent claims included claims for expensive cancer medications Targretin Gel 1% and Panretin Gel 0.1% that were not prescribed by physicians or dispensed to patients, and that were purportedly dispensed during periods when certain pharmacies were closed. Khaim, Khaimov, and their co-conspirators exploited the COVID-19 emergency for their own financial gain by using COVID-19-related “emergency override” billing codes to submit additional fraudulent claims for Targretin Gel 1%.
To conceal over $18 million of their criminal proceeds, Khaim, Khaimov, and their co-conspirators funneled money through several shell companies, including sham pharmacy wholesale companies designed to look like legitimate wholesalers. Khaim and Khaimov typically sent the funds from the pharmacy bank accounts they controlled to the sham wholesale companies. The funds were then typically sent to companies in China for distribution to individuals in Uzbekistan and the defendants received some of these funds in cash. At other times, the fraudulent proceeds were sent from the sham wholesale companies to Khaim, Khaimov, their relatives, or their designees, in the form of certified cashier’s checks and cash. Khaim and Khaimov used the proceeds of the scheme to purchase real estate and other luxury items.
Khaimov is scheduled to be sentenced on May 3, 2023. Khaim is scheduled to be sentenced on May 10, 2023. They each face a maximum penalty of 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division; U.S. Attorney Breon Peace for the Eastern District of New York; Assistant Director in Charge Michael J. Driscoll of the FBI New York Field Office; Acting Special Agent in Charge Susan Frisco of the Department of Health and Human Services Office of Inspector General (HHS-OIG); Special Agent in Charge Thomas M. Fattorusso of the IRS Criminal Investigation’s (IRS-CI) New York Field Office; and Special Agent in Charge Patricia Tarasca of the Federal Deposit Insurance Corporation Office of Inspector General (FDIC-OIG) made the announcement.
The HHS-OIG, FBI, IRS-CI, and FDIC-OIG are investigating the case.
Acting Principal Assistant Deputy Chief Jacob Foster of the Criminal Division’s Fraud Section and Trial Attorney Andrew Estes of the Fraud Section’s Brooklyn Strike Force are prosecuting the case. Former Fraud Section Trial Attorney Patrick Mott previously worked on the investigation.
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.
Saugerties Woman Sentenced to 72 Months' Imprisonment for Attempted Arson of NYPD Van Occupied by Four Police OfficersRead the Press Release
Earlier today, in federal court in Brooklyn, Samantha Shader was sentenced by United States District Judge Dora L. Irizarry to 72 months’ imprisonment for using an improvised incendiary device, commonly known as a “Molotov cocktail,” in an attempt to set fire to a New York City Police Department (NYPD) van occupied by four police officers in Brooklyn on the night of May 29, 2020. Shader pleaded guilty to the charge in April 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 sentence.
“The constitutionally protected right to peaceful protest is a core democratic value. Over the course of this nation’s history, protests have led to significant positive changes. But, throwing a potentially lethal device at an NYPD van occupied by four officers during a protest was an unacceptable and dangerous act, which put the officers and others present at risk,” stated United States Attorney Peace. “This Office is committed to holding accountable those who, like this defendant, commit crimes that endanger the community and the lives of the dedicated officers of the NYPD.”
“Today, Ms. Shader learned the consequences for choosing to engage in violent criminal actions. Malicious actors who wish to bring mayhem to our community - and those who dutifully serve to protect it - will be held accountable for their behavior by the FBI and our law enforcement partners,” stated FBI Assistant Director-in-Charge Driscoll.
“A violent criminal who crossed a line that is critical to a lawful, civil society has been appropriately held to account,” stated NYPD Commissioner Sewell. “Today’s sentencing sends a clear message that no one may ever commit a despicable act of vandalism, especially one that endangers the lives of police officers – whose mission is to ensure people’s right to demonstrate peacefully. I commend the NYPD officers who arrested her for this criminal act, and I thank the U.S. Attorney for the Eastern District for taking the safety of all New Yorkers – including the police who serve them – seriously.”
On May 29, 2020, Shader traveled from her residence in Saugerties, New York to Brooklyn to participate in a march planned to protest the murder of George Floyd by Minneapolis police officers. Before traveling to Brooklyn, Shader invited co-conspirator Timothy Amerman to “go down to the City to cause some hell,” and after he declined, procured from him numerous glass bottles that Amerman believed Shader would use as projectiles against police and counter-protesters.
On the night of May 29, 2020, amid a large protest march near the Brooklyn Museum, a witness used his phone to record a video of Shader lighting the wick of a Molotov cocktail and throwing it at a marked NYPD van occupied by four police officers who were assigned to crowd control during the protests. As she threw the Molotov cocktail, Shader called out to the protesters around the van to “GET OUT THE MOTHERF---ING WAY!” The Molotov cocktail struck the NYPD van, shattering two of its windows, but did not break and ignite. The police officers exited their vehicle and apprehended Shader, who resisted arrest by biting one of the police officers on the leg.
Following Shader’s arrest, the FBI identified Saugerties, New York resident Amerman as the man who had provided glass bottles to Shader and arrested him on July 3, 2020. Amerman pleaded guilty to one count of conspiracy to commit civil disorder on March 26, 2021, and is awaiting sentencing. He faces a maximum term of 60 months’ imprisonment.
The government’s case is being handled by the Office’s National Security and Cybercrime Section. Assistant United States Attorneys Ian C. Richardson and Jonathan Algor are in charge of the prosecution.
The Defendants:
SAMANTHA SHADER
Age: 29
Saugerties, New YorkE.D.N.Y. Docket No. 20-CR-202 (DLI)
TIMOTHY AMERMAN
Age: 31
Saugerties, New YorkE.D.N.Y. Docket No. 21-CR-126 (DLI)
Riverhead Man Sentenced to 27 Years' Imprisonment for Firearm Related MurderRead the Press Release
Earlier today, in federal court in Central Islip, Jason Langhorn, an associate of the “Red Stone Gorilla” subset of the Bloods, a violent criminal enterprise based in Riverhead, New York, was sentenced to 27 years’ imprisonment and three years of supervised release by United States District Judge Joanna Seybert for his participation in the murder of Thomas Lacolla on November 17, 2015, which occurred while Langhorn and others were attempting to kill a rival of the gang. Langhorn pleaded guilty to firearms-related murder in August 2021.
Breon Peace, United States Attorney for the Eastern District of New York, and Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI) announced the sentence.
“Langhorn has been held accountable for his role in a heartless shooting that claimed the life of an unintended victim,” stated United States Attorney Peace. “We hope today’s sentence brings a measure of solace and closure to the victim’s family and sends a clear message that those who commit brutal acts of gang violence will be brought to justice and punished.”
Mr. Peace also extended his thanks to the Suffolk County District Attorney’s Office’s East End Drug Task Force, the Suffolk County Police Department and the Riverhead Police Department for their assistance in the investigation and prosecution.
As alleged in the indictment and court filings, the defendant assisted members of the Bloods as they tried to kill a rival gang member, which resulted in the shooting death of Mr. Lacolla. In an attempt to carry out a standing order by the leader of the gang to kill the rival, Langhorn accompanied several fellow Bloods members to a location in Riverside, New York, just outside of Riverhead. There, Langhorn and two others fired more than 39 shots, collectively, into a vehicle they believed was occupied by their intended target, but instead was occupied by Mr. Lacolla, who was shot and killed instantly.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of its renewed focus on targeting violent criminals, directing all U.S. Attorneys’ Offices to work in partnership with federal, state, local and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorneys Michael Maffei and Nicole Boeckmann are in charge of the prosecution.
Defendant:
JASON LANGHORN, also known as “Hov”
Age: 40
Riverhead, New YorkE.D.N.Y. Docket No. 18-CR-606 (S-2) (JS)
Three New York City Correction Officers Charged with Fraud for Lying to Stay on Sick Leave for over a YearRead the Press Release
Two criminal complaints were unsealed today in federal court in Brooklyn charging three correction officers employed by the New York City Department of Correction (DOC) at Rikers Island with federal program fraud. Correction Officers Steven Cange, Monica Coaxum and Eduardo Trinidad were arrested earlier today, and their initial appearances are scheduled for this afternoon before United States Magistrate Judge Vera M. Scanlon.
Breon Peace, United States Attorney for the Eastern District of New York, Michael J. Driscoll, Assistant Director-in-Charge, New York Field Office (FBI), and Jocelyn E. Strauber, Commissioner, New York City Department of Investigation (DOI) announced the charges.
“As alleged, in the midst of an ongoing staffing crisis at Rikers Island, the defendants defrauded New Yorkers by fraudulently obtaining their full salaries while taking over a year of sick leave. These correction officers abandoned their oath to protect inmates and put the safety of their fellow correction officers at risk” stated United States Attorney Breon Peace. “Today’s arrests demonstrate that this Office remains committed to rooting out corruption at Rikers Island and protecting New Yorkers from public officials who steal their tax dollars.”
“As alleged, the defendants deliberately violated their oath when they participated in an elaborate scheme to defraud our community. The FBI and our partners are committed to disrupting these fraudulent scams and holding the public officials who perpetuate them accountable,” stated FBI Assistant Director-in-Charge Driscoll.
DOI Commissioner Jocelyn E. Strauber said, “As charged, these New York City Correction Officers feigned illness and submitted false medical documentation to take sick leave during a staffing crisis, defrauding the City of New York of hundreds of thousands of dollars. Today’s arrests hold these Correction Officers accountable for the shameful dereliction of duty alleged in the Complaints. I thank the United States Attorney’s Office for the Eastern District of New York and the Federal Bureau of Investigation for their continuing partnership and efforts to bring to justice those whose misconduct jeopardizes the safety and stability of the City’s jails.”
As alleged in one complaint, New York City Correction Officer Steven Cange fraudulently obtained more than $160,000 in salary by being on sick leave from March 2021 to the present. Although Cange claimed that he suffered from symptoms of vertigo and side effects from the COVID-19 vaccine, evidence obtained by law enforcement demonstrates that Cange was able to work. During his sick leave, Cange submitted more than 100 fraudulent medical notes to DOC demonstrating that he was at physical therapy or another medical provider when records subpoenaed from those providers demonstrate that Cange was not at those appointments. Law enforcement also observed Cange engaging in normal life activities with no apparent difficulty.
As alleged in a separate complaint, New York City Correction Officer Monica Coaxum fraudulently obtained more than $80,000 in salary by being on sick leave from March 2021 to May 2022, and her fiancée, Correction Officer Eduardo Trinidad, fraudulently obtained more than $140,000 in salary by being on sick leave from June 2021 to November 2022. Although Coaxum claimed to suffer from multiple injuries, evidence collected by investigators shows that she was able to work. During her sick leave, Coaxum submitted nearly 50 fraudulent medical notes to DOC stating that she had gone to a medical appointment at times law enforcement determined she was elsewhere. Additionally, evidence shows that on some occasions where Coaxum claimed to be injured and at home, she was traveling and at parties. When approached by law enforcement, Coaxum admitted to forging some medical documents.
Trinidad likewise obtained more than $140,000 by claiming to be too injured to work for over a year. Although he went to medical appointments with DOC wearing some combination of a sling, cane, and/or boot, photographic and video evidence during the same period showed Trinidad doing normal life activities like home improvement work, bowling and traveling abroad, without any difficulty or help from equipment like a boot, sling or cane.
The charges in the complaints are allegations, and the defendants are presumed innocent unless and until proven guilty. If convicted, the defendants each face a maximum sentence of 10 years’ imprisonment.
The government’s case is being handled by the Office’s Public Integrity Section. The government’s case is being prosecuted by Assistant United States Attorneys Philip Pilmar and Andrew Grubin.
The Defendants:
STEVEN CANGE
Age: 49
Brooklyn, NYE.D.N.Y. Docket No. 22-MJ-1204
MONICA COAXUM
Age: 36
Harrison, NYEDUARDO TRINIDAD
Age: 42
Yonkers, NYE.D.N.Y. Docket No. 22-MJ-1203
Long Island Businesswoman Convicted of Obstructing the Internal Revenue Service, Filing False Tax Returns, and Structuring Cash DepositsRead the Press Release
Earlier today, a federal jury in Central Islip returned a guilty verdict on all five counts of superseding indictment charging Lorraine Pilitz, also known as “Lorraine Christie,” and “Lorraine Storms” with illegally structuring financial transactions, corruptly obstructing the Internal Revenue Service (IRS), and filing false tax returns. The verdict followed a two-week trial before United States District Judge Joanna Seybert.
Breon Peace, United States Attorney for the Eastern District of New York, and Thomas Fattorusso, Acting Special Agent-in-Charge, Internal Revenue Service Criminal Investigation, New York (IRS-CI), announced the verdict.
“For years the defendant thought she could get away with hiding substantial amounts of cash and income, impeding the Internal Revenue Service, and cheating her employees, but the jury saw through the lies and has held her responsible for her actions,” stated United States Attorney Peace. “Business owners who place greed above following the rule of law will face the consequences.”
Mr. Peace thanked the Suffolk County Police Department’s Treasury Enhanced Prosecution Program for their assistance with the case.
“Lorraine Pilitz set up a complicated scheme to hide hundreds of thousands of dollars from the IRS by grossly underreporting her income and having an ‘off-the-books’ payroll. As the investigative arm of the IRS, IRS Criminal Investigation is strategically positioned to track down all those who look to steal from the U.S. Treasury and the American public to line their own pockets,” said Thomas M. Fattorusso, Special Agent in Charge of IRS-CI New York.
As proven at trial, Pilitz owned and operated several automobile-related businesses on Long Island. Financial institutions are required to file a Currency Transaction Report (CTR) with the IRS for each transaction in excess of $10,000. Between 2011 and 2013, the defendant routinely structured cash deposits to avoid the required CTR filings – depositing cash amounts just under $10,000. As a result of Pilitz’s scheme, hundreds of thousands of dollars were concealed from the IRS. As part of the same scheme to conceal her income, Pilitz also diverted hundreds of thousands of dollars of business checks into her and her family’s personal bank accounts, maintained “off-the-books” payrolls, failed to file personal and corporate tax returns, and filed false tax returns that severely underreported her income.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorneys Burton T. Ryan, Jr., Adam R. Toporovsky, Madeline O’Connor and Diane Leonardo are in charge of the prosecution with assistance from Paralegal Specialist Michael Compitello.
The Defendant:
LORRAINE PILITZ
Age: 64
Merrick, New YorkE.D.N.Y. Docket 17-CR-53 (S-2) (JS)
MS-13 Gang Members Charged with 2015 Murder in BrentwoodRead the Press Release
A two-count indictment was unsealed earlier today in federal court in Central Islip charging three members of La Mara Salvatrucha, also known as the MS-13, Roberto Antonio Abrego-Reyes, also known as “Splinter” and “Impaciente,” Miguel Angel Alfaro-Santos, also known as “Asesino,” and Jose Benedicto Baires-Novoa, also known as “Macabro,” with the murder of 24-year-old Kenneth Evans, Jr in Brentwood, New York on November 28, 2015.
Baires-Novoa, who is a member of the Guanacos Lil Cycos Salvatruchas (Guanacos) clique of the MS-13, was arrested in Brentwood, New York on November 7, 2022 by members of the Federal Bureau of Investigation Long Island Gang Task Force (FBI LIGTF) and was arraigned before United States Magistrate Judge James M. Wicks earlier this afternoon. Baires-Novoa was ordered detained pending trial. Additionally, earlier today, Alfaro-Santos, who is also a member of the Guanacos clique of the MS-13, appeared in federal court in the Middle District of Pennsylvania, and was ordered removed to the Eastern District of New York to face charges. The third defendant, Abrego-Reyes, a member of the Indios Locos Salvatruchas (ILS) clique of the MS-13, is presently in state custody at the Nassau County Correctional Center and will be transferred to federal custody and arraigned at a later date.
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 charges.
“With these arrests, we are holding the defendants accountable for senselessly shooting two innocent bystanders, striking one in the head and killing the other, leaving fear and grief in their wake,” stated United States Attorney Peace. “This should serve as a warning, that there is no amount of time that will stop this Office from pursuing justice to keep our communities safe.”
United States Attorney Peace expressed his appreciation to the members of the FBI LIGTF, as well as to the Nassau County District Attorney’s Office, for their partnership in this case.
“The senseless and gruesome acts committed in the name of MS-13 are hard to comprehend,” Suffolk County Police Commissioner Rodney K. Harrison said. “This department, along with our law enforcement partners, will never stop pursuing justice for those killed at hands of gang members. Even though seven years have passed since this murder, investigators never gave up.”
"MS-13 raises the specter of violence for communities that have experienced the terror members leave in their wake. Our work has slowed and even stopped their criminal and deadly activity; however, we could see a resurgence if we get complacent. The FBI Long Island Gang Task Force and our law enforcement partners are continuing the work and maintaining our outreach with the public to thwart this ever-present threat," stated FBI Assistant Director-in-Charge Driscoll.
According to court filings, on the evening of November 28, 2015, Abrego-Reyes, Alfaro-Santos and Baires-Novoa agreed with other MS-13 members to “put in work” for the gang – that is, to go out hunting for rival gang members to target and kill. The MS-13 members armed themselves with a .38 caliber handgun and a 9mm handgun, and drove around the Brentwood area looking for potential targets. While driving in the vicinity of Gibson Avenue in Brentwood, the three defendants and their fellow MS-13 co-conspirators observed three males, one of whom was Evans, walking along the street. Although the three males were not personally known to the MS-13 members, they were wrongly presumed to be members of a rival gang and were immediately targeted.
Alfaro-Santos and another MS-13 member, who were each armed with a handgun, got out of the car and approached the victims, while Abrego-Reyes, who was driving the vehicle, Baires-Novoa, and another MS-13 member remained in close proximity, watching for police presence in the area and waiting to drive the shooters away from the scene. Alfaro-Santos and the other MS-13 member walked just behind the three victims and began shooting. Evans was struck multiple times and died from his wounds. A second victim was shot in the head but survived the attack. The third man escaped injury. Following the shooting, the MS-13 members in the car picked up the two shooters, and all fled the scene.
If convicted, each defendant faces mandatory life in prison or the possibility of the death penalty.
This indictment is the latest in a series of federal prosecutions by the United States Attorney’s Office for the Eastern District of New York targeting members of the MS-13, a violent, transnational criminal organization. The MS-13’s leadership is based in El Salvador, Honduras, Guatemala and Mexico, but the gang has thousands of members across the United States. With numerous branches, or “cliques,” the MS-13 is the most violent criminal organization on Long Island. Since 2003, hundreds of MS-13 members, including dozens of clique leaders, have been convicted on federal felony charges in the Eastern District of New York. A majority of those MS-13 members have been convicted on federal racketeering charges for participating in murders, attempted murders and assaults. Since 2010, this Office has obtained indictments charging MS-13 members with carrying out more than 60 murders in the Eastern District of New York, resulting in the convictions of dozens of MS-13 leaders and members in connection with those murders. These prosecutions are the product of investigations led by the FBI LIGTF, which is comprised of agents and officers of the FBI, SCPD, Nassau County Police Department, Nassau County Sheriff’s Department, Suffolk County Probation Office, Suffolk County Sheriff’s Office, the New York State Police, the Hempstead Police Department, the Rockville Centre Police Department and the New York State Department of Corrections and Community Supervision.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorneys Paul G. Scotti, Justina L. Geraci and Megan E. Farrell are in charge of the prosecution.
The Defendants:
ROBERTO ANTONIO ABREGO-REYES (“Splinter” and “Impaciente”)
Age: 28
Flushing and Hempstead, NYMIGUEL ANGEL ALFARO-SANTOS (“Asesino”)
Age: 26
Flushing, NYJOSE BENEDICTO BAIRES-NOVOA (“Macabro”)
Age: 26
Flushing and Brentwood, NYE.D.N.Y. Docket No. 22-CR-499 (JMA)
Long Island Man Pleads Guilty to $3 Million Bank Loan SchemeRead the Press Release
Earlier today, in federal court in Central Islip, Gary Confredo, also known as “Gary Conte,” the former operator of Goldstar Financial Management Corp. (Goldstar), a financial services business based in Commack, New York, pleaded guilty to a criminal information charging him with conspiracy to commit bank fraud in connection with a scheme to defraud Bank of America of more than $3.2 million in loans and lines of credit that were obtained under false pretenses.
The proceeding was held before United States Magistrate Judge Lee G. Dunst. When sentenced, Confredo faces up to 30 years in prison. As part of his guilty plea, Confredo agreed to forfeit approximately $140,000 and to pay restitution in an amount to be determined by the Court at his sentencing.
Breon Peace, United States Attorney for the Eastern District of New York, and Daniel Brubaker, Inspector-in-Charge, United States Postal Inspection Service, New York Division (USPIS), announced the guilty plea.
“As the defendant admitted, he selfishly manipulated the trust of his clients and lied to financial institutions simply to line his own pockets. He will now face consequences for his greed,” stated United States Attorney Peace. “This Office stands committed to prosecuting criminals, whether they hurt someone physically or financially.”
“Mr. Confredo defrauded Bank of America of millions of dollars while on supervised release from a previous conviction. With his guilty plea today, he has taken responsibility for his greed and hopefully will stop the revolving door on his life of crime. Any time the U.S. Mail is used to commit and/or further a crime, the U.S. Postal Inspection Service will be there to see that those responsible are brought to justice” stated USPIS Inspector in Charge, Daniel Brubaker.
According to court filings and facts presented at the plea proceeding, between November 2016 and October 2019, Confredo conspired with others to submit fraudulent applications for commercial loan and lines of credit to Bank of America on behalf of Goldstar clients, who agreed to pay Confredo a portion of any loan that he secured on their behalf. To manipulate the application process, Confredo submitted altered tax returns and bank statements that falsely inflated the clients’ incomes and assets and allowed them to qualify for loans and lines of credit under Bank of America’s lending criteria. As a result of Confredo’s scheme, Bank of America issued approximately $3.2 million in loans and lines of credit to Goldstar’s clients and sustained losses of approximately $1 million when those loans and lines of credit were not repaid.
In July 2022, Mr. Peace was selected as the Chairperson of the White Collar Fraud subcommittee for the Attorney General’s Advisory Committee (AGAC). As the leader of the subcommittee, Mr. Peace will play a key role in making recommendations to the AGAC to facilitate the prevention, investigation and prosecution of various financially motivated, non-violent crimes including mail and wire fraud, bank fraud, health care fraud, tax fraud, securities and commodities fraud, and identity theft.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorney Bradley T. King is in charge of the prosecution with assistant from Paralegal Specialist Samantha Schroeder and Legal Assistant Danielle Casey. Assistant United States Attorney Madeline O’Connor of the Office’s Asset Recovery Section is handling forfeiture matters.
The Defendant:
GARY CONFREDO (also known as “Gary Conte”)
Age: 60
East Northport, New YorkE.D.N.Y. Docket No. 22-CR-425 (JMA)
United States Attorneys Available to Receive Election ComplaintsRead the Press Release
United States Attorneys Breon Peace and Damian Williams announced today that Assistant United States Attorneys (AUSAs) will lead the efforts of their Offices in connection with the Justice Department’s nationwide Election Day Program for the upcoming November 8, 2022, general election. AUSA Erik Paulsen has been appointed to serve as the District Election Officer (DEO) for the Eastern District of New York, and David J. Kennedy has been appointed to serve as the DEO for the Southern District of New York. In their capacity as DEOs, these AUSAs are responsible for overseeing the Districts’ handling of Election Day complaints of voting rights concerns, threats of violence to election officials or staff, and election fraud, in consultation with Justice Department Headquarters in Washington.
United States Attorney Peace said, “The right of all citizens in the district to cast their votes and have their votes counted fairly and without interference, discrimination or threat of violence, is a cornerstone of our democracy and this Office will vigorously defend that right with the full force of federal law.”
United States Attorney Williams said, “Free and fair elections are principal to democracy, and every vote counts. It is the solemn privilege of this Office to work together with our law enforcement partners to ensure that New Yorkers are able to exercise their inherent right to select their representatives unencumbered by unlawful intimidation or interference. We encourage anyone who finds their civic voting protections subject to hindrance to please contact the numbers below.
The Department of Justice plays an important role in deterring and combatting discrimination and intimidation at the polls, threats of violence directed at election officials and poll workers, and election fraud. The Department will address these violations wherever they occur. The Department’s longstanding Election Day Program furthers these goals and also seeks to ensure public confidence in the electoral process by providing local points of contact within the Department for the public to report possible federal election law violations.
Federal law protects against such crimes as threatening violence against election officials or staff, intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters, and provides that they can vote free from interference, including intimidation, and other acts designed to prevent or discourage people from voting or voting for the candidate of their choice. The Voting Rights Act protects the right of voters to mark their own ballot or to be assisted by a person of their choice (where voters need assistance because of disability or inability to read or write in English).
United States Attorneys Peace and Williams stated that: “The franchise is the cornerstone of American democracy. We all must ensure that those who are entitled to the franchise can exercise it if they choose, and that those who seek to corrupt it are brought to justice. In order to respond to complaints of voting rights concerns and election fraud during the upcoming election, and to ensure that such complaints are directed to the appropriate authorities, AUSAs will be on duty in this District while the polls are open.”
In order to respond to complaints of election fraud or voting rights concerns during the voting period that ends on November 8, 2022, and to ensure that such complaints are directed to the appropriate authorities, the United States Attorneys said that their Offices will be available to receive complaints at the following numbers through Tuesday, November 8, 2022:
(646) 369-4739 (for Manhattan, Bronx, Dutchess, Orange, Putnam, Rockland, Sullivan, and Westchester counties) and
(718) 254-7000 (for Brooklyn, Queens, Staten Island, Nassau, and Suffolk counties)In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on Election Day. The local FBI field office can be reached by the public at (212) 384-1000.
Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division in Washington, DC by phone at 800-253-3931 or by complaint form at https://civilrights.justice.gov/ .
Please note, however, in the case of a crime of violence or intimidation, please call 911 immediately and before contacting federal authorities. State and local police have primary jurisdiction over polling places, and almost always have faster reaction capacity in an emergency.
The United States Attorneys also noted that the following additional telephone numbers are available on Election Day for citizens to call for routine inquiries, such as where to vote or how late the polls are open, or to register complaints that may concern violations of New York State election laws:
IN NEW YORK CITY
City Board of Elections
Main Office (866) 868-3692
TTY #: 212-487-5496
IN COUNTIES OUTSIDE NEW YORK CITY
County Boards of Elections
Dutchess (845) 486-2473
Nassau (516) 571-8683
Orange (845) 360-6500
Orange (Spanish language) (855) 331-2444
Putnam (845) 808-1300
Rockland (845) 638-5172
Suffolk (631) 852-4500
Sullivan (845) 807-0400
Westchester (914) 995-5700
North Carolina Felon Arrested for Trafficking More than a Dozen Firearms to New York for SaleRead the Press Release
Earlier today, in federal court in Brooklyn, Dwayne Pickett, also known as “Waynehead,” was arraigned before Judge James R. Cho on a three-count indictment charging him with unlawful firearms trafficking and being a felon in possession of firearms and ammunition. The indictment relates to Pickett’s sales and attempted sales of more than fifteen firearms that he trafficked from North Carolina to New York. Pickett was arrested on a complaint in September 2022. A federal grand jury returned the indictment on October 25, 2022. Pickett remains detained pending trial.
Breon Peace, United States Attorney for the Eastern District of New York, John DeVito, Special Agent-in-Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and Keechant L. Sewell, Commissioner, New York City Police Department (NYPD), announced the charges.
“Another individual who is alleged to have come into our district for the sole purpose of selling over fifteen illegal firearms has been arrested and will be held accountable,” stated United States Attorney Breon Peace. “This office and our law enforcement partners will continue to work nonstop to prevent guns from being trafficked into our communities and protect those who call this district home from gun violence.”
“As alleged in the indictment, Pickett, a convicted felon, in concert with others, trafficked more than fifteen firearms to New York City. A large portion of these firearms were sourced through theft and burglary. This case demonstrates how the steady trickle of firearms into our communities originate from any number of sources, and sometimes make their way to our streets in only a matter of days. Pickett is in custody today thanks to the outstanding work of the ATF Joint Firearms Task Force, the NYPD Human Trafficking Unit, the NYPD 105th Field Intelligence Office and the U.S. Attorney’s Office EDNY. Our investigation and resolve continue,” stated ATF Special Agent-in-Charge DeVito.
As alleged, in September 2022, Pickett traveled from North Carolina to Jamaica, Queens, where he sold ten firearms for approximately $11,000. The firearms Pickett sold were handguns of various makes and models, eight of which had been previously reported stolen from a firearms dealer in North Carolina. After returning to North Carolina, Pickett continued to market firearms for sale, sending one potential buyer pictures of a variety of handguns and their sale prices.
In late September 2022, Pickett again traveled from North Carolina and planned to meet with a purchaser for another guns for cash transaction. Pickett was arrested upon arriving at the planned sale location, while carrying a duffle bag with five additional handguns and assorted ammunition.
Pickett’s criminal history includes felony convictions that bar him from possessing firearms. The defendant is not a licensed firearms dealer.
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. This case is also being investigated by the Firearms Trafficking Strike Force, announced in June 2021, and designed to share information and otherwise collaborate across districts where firearms trafficking schemes cross state lines or jurisdictional boundaries to focus enforcement against entire trafficking networks, from the places where guns are unlawfully obtained to the areas where they are used to commit violent crimes.
The government’s case is being handled by the Office’s General Crimes Section. Assistant United States Attorney Kaitlin McTague is in charge of the prosecution. Law Clerk Beth Ann Bentley of the Office’s Asset Recovery Section is assisting on forfeiture matters.
The Defendant:
DWAYNE PICKETT (also known as “Waynehead”)
Age: 27
Statesville, North CarolinaE.D.N.Y. Docket No. 22-CR-486 (NM)
Owner and Employees of the Sayville Motor Lodge Indicted for Sex Trafficking and Managing a Drug PremisesRead the Press Release
An indictment was unsealed today in federal court in Central Islip charging Narendarakuma Dadarwala, his wife Shardaben Dadarwala, their son Jigar Dadarwala, Ashokbhai Patel, and Himanshu, Inc. d/b/a Sayville Motor Lodge with sex trafficking conspiracy. The Dadarwalas, Patel, and Himanshu, Inc. are also charged with managing a drug premises, and Narendarakuma Dadarwala is charged with distribution of proceeds of prostitution and narcotics businesses. Patel was arrested yesterday in Nebraska and will be arraigned in the Eastern District of New York at a later date. The other defendants were arrested this morning and will be arraigned this afternoon before United States Magistrate Judge Lee G. Dunst. A fifth co-conspirator 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 (FBI), Rodney K. Harrison, Commissioner, Suffolk County Police Department (SCPD), and Raymond A. Tierney, Suffolk County District Attorney, announced the indictment and arrests.
“As alleged, the defendants made the Sayville Motor Lodge a money-making refuge for prostitution and narcotics trafficking, and a blight on the surrounding community,” stated United States Attorney Peace. “With these arrests, we send a clear message that our Office will prosecute those who use motels or any other venue as their base of operations for trafficking human beings and drugs.”
Mr. Peace also thanked the United States Marshal Service, the Suffolk County Sheriff’s Office, the Nassau County District Attorney’s Office, United States Customs and Border Protection, and Homeland Security Investigations for their assistance.
“We allege the owner and employees of the Sayville Motor Lodge looked the other way when pimps trafficked human beings in their hotel. More egregiously, we allege they took money from those pimps and drug dealers, who beat and abused the women involved in front of them. Other hotel owners who operate in a similar fashion should take heed, we will hold them accountable for their actions in allowing sex trafficking to take place in their establishments. We're asking anyone who is a victim of human trafficking, or believes they know of someone who is, to call us at 1-800-CALL-FBI," stated FBI Assistant Director-in-Charge Driscoll.
“From the outside, the Sayville Motor Lodge appeared to be a typical roadside motel, but in reality, there was far more than just overnight stays occurring there,” stated SCPD Commissioner Harrison. “The owners and employees facilitated sex trafficking and drug sales for financial gain at the expense of women, including a minor. We will continue to work with our law enforcement partners to stop those who exploit victims of human trafficking and will continue to help these victims receive the services they need to get their lives back on track.”
“These defendants are alleged to have not only knowingly allowed criminal behavior to run rampant at the Motor Inn for years, they also financially benefited from these same illegal activities directly through kickbacks," stated District Attorney Tierney. "Thanks to our partnership with U.S. Attorney Breon Peace and the Suffolk County Police Department, this blight on the community will no longer be open for illicit business.”
As set forth in court filings, the Dadarwalas have owned and operated the Sayville Motor Lodge since approximately 1984. They reside and work at the motel. From 2017 to 2019, Ashokai Patel was employed and also lived there. The Dadarwalas and Patel facilitated the criminal activity at the Sayville Motor Lodge and profited from the prostitution and narcotics activity that routinely took place there. Specifically, the Dadarwalas and Patel conspired with traffickers. They exercised control over room rentals and booked dates and set room rates for commercial sex. They were aware that women engaged in prostitution, including at least one minor trafficking victim. They warned traffickers and women engaged in prostitution when law enforcement was on the premises and observed traffickers inflict physical violence on their victims and customers. They also financially benefited from the commercial sex activity at the Sayville Motor Lodge. The traffickers, sex workers, and drug dealers at the Sayville Motor Lodge frequently interacted with the staff and called Narendarakuma Dadarwala “Dad” and “Pa” and Shardaben Dadarwala “Mom” and “Ma.”
From approximately 2014 until 2018, an unapprehended co-conspirator allegedly operated his sex trafficking business out of the Sayville Motor Lodge, in coordination with the Dadarwalas and Patel. The co-conspirator trafficked several women out of the motel, including a minor, and routinely subjected the women who worked for him to physical violence. In furtherance of his operation, the co-conspirator kept the women who worked for him addicted to drugs and introduced them to prostitution in exchange for drugs, posted ads on the internet and set rates for commercial sex acts, confiscated proceeds from prostitution, and mentally and physically abused the women and minors who worked for him.
In addition, from 2014 to the present, the Dadarwalas, Patel, and Himanshu, Inc. profited from the narcotics trafficking that was conducted openly on Sayville Motor Lodge property. The defendants allowed customers to freely use drugs, including heroin, cocaine and crack cocaine, in plain view and in motel rooms. Much like the traffickers, drug dealers paid the Sayville defendants for the privilege of selling drugs at the Sayville Motor Lodge. Narendarakuma Dadarwala wired funds from the rental of rooms for prostitution and narcotics trafficking to his son and Patel.
Further, as set forth in the indictment, the government is seeking to forfeit the Sayville Motor Lodge. To ensure the property is preserved for forfeiture, the United States has obtained an order restraining the defendants from transferring, encumbering or operating the Sayville Motor Lodge in violation of law.
If convicted, the defendants each face a minimum of 15 years’ imprisonment and a maximum of life imprisonment on the sex trafficking charge. Jigar Dadarwala, Narendarakuma Dadarwala, Shardaben Dadarwala and Ashokai Patel face up to 20 years for the managing a drug premises charge; and Narendarakuma Dadarwala faces up to 5 years on distribution of proceeds of prostitution and narcotics businesses charge.
The charges in the indictment are allegations, and the defendants are presumed innocent unless and until proven guilty.
If you were a victim, please contact the FBI at 1-800-CALL-FBI.
The government’s case is being handled by the Office’s Civil Rights Section and Long Island Criminal Division. Assistant United States Attorneys Catherine M. Mirabile, Samantha S. Alessi and Special Assistant United States Attorney Vanessa McEvoy are in charge of the prosecution. Assistant United States Attorney Brian Morris of the Office’s Asset Recovery Section is handling forfeiture matters.The Defendants:
JIGAR DADARWALA (also known as “Cobra”)
Age: 44
Sayville, New YorkNARENDARAKUMA DADARWALA (also known as “Naren,” “Pa” and “Dad”)
Age: 76
Sayville, New YorkSHARDABEN DADARWALA (also known as “Sharda,” “Ma” and “Mom”)
Age: 69
Sayville, New YorkASHOKBHAI PATEL, also known as “BG”
Age: 58
Omaha, NebraskaHIMANSHU, INC. d/b/a Sayville Motor Lodge
E.D.N.Y. Docket No. 22-CR-22-CR-494 (JS)
Instagram Personality Known as “Jay Mazini” Pleads Guilty to Wire Fraud, Wire Fraud Conspiracy and Money LaunderingRead the Press Release
Earlier today, Jebara Igbara, also known as “Jay Mazini,” pleaded guilty in federal court in Brooklyn to a three count information charging him with wire fraud, wire fraud conspiracy and money laundering. As set forth in the information, up until March 2021, Igbara maintained a popular Instagram account under the name “Jay Mazini,” where he would post videos depicting, among other things, occasions during which he would hand out large amounts of cash to various individuals as gifts. In reality, Igbara was perpetrating overlapping fraud schemes, scamming investors out of at least $8 million.
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 Thomas Fattorusso, Special Agent-in-Charge, Internal Revenue Service Criminal Investigation, New York (IRS-CI) announced the guilty plea.
“With today’s plea, the defendant has admitted to leveraging his Instagram popularity to prey upon innocent investors and steal at least $8 million of their hard-earned money,” stated United States Attorney Peace. “Together with our agency partners, this Office is committed to bringing scammers to justice.”
“As he admitted today, Igbara deliberately operated multiple scams to cheat a multitude of investors out of their money. The FBI and our law enforcement partners are committed to stopping fraudsters of all types and holding them accountable in the criminal justice system,” stated FBI Assistant Director-in-Charge Driscoll.
“All the victims in this case were promised something that was too good to be true. Those in the Ponzi scheme were all assured a high rate of return in a short amount of time, while the victims of the Bitcoin advance fee scheme were guaranteed above current market value for their Bitcoin. This multi-million dollar case is a reminder for anyone thinking of investing: Be skeptical of any investments with larger than life promises, because if it sounds too good to be true, it probably is,” stated IRS-CI Special Agent-in-Charge Fattorusso.
As detailed in the information, Igbara is charged with perpetrating a scheme to defraud members of the Muslim-American community in New York by soliciting their money for purported investments in stock, electronics resale, and purchases of COVID-19 related personal protective equipment (PPE). In reality, Igbara was operating a Ponzi scheme, and misappropriated nearly all of the money for his personal expenses and gambling.
To raise money in order to pay his investors “returns,” and keep them on the hook, Igbara also perpetrated a second fraudulent scheme, wherein he posted on his Instagram and other social media accounts that he was willing to pay above-market prices for various cryptocurrencies. He would then send his victims doctored images of wire transfer confirmations that purported to show he had sent money for the cryptocurrency as promised, when in reality, the payment was never sent, and Igbara was merely stealing the cryptocurrency sent by his victim.
When sentenced, Igbara faces up to 20 years’ imprisonment.
The government’s case is being handled by the Office’s Business & Securities Fraud Section. Assistant United States Attorney Lauren Howard Elbert is in charge of the prosecution.
The Defendant:
JEBARA IGBARA (also known as “Jay Mazini”)
Age: 27
Edgewater, New JerseyE.D.N.Y. Docket No. 22-CR-424 (FB)
Defendant Charged with Trafficking Firearms from Arkansas to All Five Boroughs of New York CityRead the Press Release
An indictment was unsealed today in federal court in Brooklyn charging Kyler Booker with conspiring to deal in firearms and making false statements to acquire firearms. According to public filings, Booker was a straw gun buyer who purchased at least 137 firearms from dealers in Arkansas between December 2019 and September 2021. Law enforcement has recovered at least 13 firearms illegally acquired and distributed by Booker in New York City, across all five boroughs. Booker was arrested this morning in Arkansas and is scheduled to be arraigned today at the federal courthouse in Little Rock, Arkansas, and removed to the Eastern District of New York at a later date.
Breon Peace, United States Attorney for the Eastern District of New York, John B. DeVito, Special Agent-in-Charge, U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and Keechant L. Sewell, Commissioner, New York City Police Department (NYPD), announced the arrest and charges.
“Today’s arrest stops one bad actor who illegally purchased at least 137 guns, funneling many into our community including putting firearms in the hands of minors and a convicted criminal,” stated United States Attorney Peace. “While 13 guns have been recovered from across all five boroughs of New York City, as is the unfortunate side effect of the gun violence epidemic, many more of the defendant’s firearms may still be out there. Our Office and our law enforcement partners remain committed to keeping our community safe by doing all we can to stop gun traffickers and quell gun violence.”
Mr. Peace thanked the United States Attorney’s Office for the Eastern District of Arkansas for its assistance with the investigation.
“As alleged, Kyler Booker illegally trafficked firearms directly into the hands of violent criminals in New York; far from the neighborhoods in which they were originally purchased. This case is yet another example of fully exploiting crime gun intelligence and the collaborative work amongst law enforcement and prosecutors to identify and stop these individuals. Mr. Brooker and all others involved in weapons trafficking should know that the men and women of the ATF Joint Firearms Task Force, NYPD and EDNY will work tirelessly to keep our communities safe. Special thanks to the ATF Little Rock Arkansas Field Office for their tireless work on this investigation,” stated ATF Special Agent-in-Charge DeVito.
“The surge of gun violence in New York City is being fueled by individuals who circumvent the law and supply firearms to trigger-pullers,” stated NYPD Commissioner Sewell. “The weapons recovered in this case were headed to only one place, our neighborhoods, in the hands of criminals fully prepared to commit acts of wanton violence. I commend and thank all of the investigators with the NYPD, the ATF, and the U.S. Attorney’s Office for the Eastern District for their outstanding work on this and many other cases.”
As alleged in court filings, Booker visited numerous federally licensed retailers in Arkansas and, in 26 separate transactions, purchased at least 137 firearms, including dozens of 9-millimeter pistols. In connection with purchasing the firearms, Booker falsely affirmed that he was the actual buyer when, in fact, he had conspired to sell the guns to other individuals, including customers he communicated with by phone and over Facebook.
The NYPD has recovered at least 13 of the firearms dealt by Booker from across every borough, including eight from Brooklyn:
- Twelve of the recovered firearms were loaded;
- Two were recovered from or near a minor;
- One was recovered from the residence of a parolee who had been convicted of attempted burglary;
- Seven were recovered on a party bus that had been stopped for traffic violations.
The charges in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty. If convicted, Booker faces a maximum of 10 years’ imprisonment for each of the false statement counts and a maximum of five years’ imprisonment for the conspiracy count.
The government’s case is being handled by the Office’s Organized Crime and Gangs section. Assistant United States Attorney Victor Zapana is in charge of the prosecution.
The Defendant:
KYLER BOOKER
Age: 44
Little Rock, ArkansasE.D.N.Y. Docket No. 22-CR-489 (NM)
Montenegrin National Charged in Brooklyn Federal Court with Maritime Narcotrafficking of over 20 Tons of CocaineRead the Press Release
Seizure of Cocaine from the MSC Gayane at the Port of Philadelphia Was One of the Largest in U.S. History
An indictment was unsealed today in federal court in Brooklyn charging Goran Gogic with one count of conspiracy to violate the Maritime Drug Law Enforcement Act and three counts of violating the Maritime Drug Law Enforcement Act. Gogic, a citizen of Montenegro, and a former heavyweight boxer, was arrested last night as he attempted to board an international flight from Miami International Airport. Gogic is expected to appear this afternoon in federal court in Miami and will be arraigned in the Eastern District of New York at a later date.
Breon Peace, United States Attorney for the Eastern District of New York; Ivan J. Arvelo, Special Agent-in-Charge, Homeland Security Investigations, New York (HSI); Frank A. Tarentino, III, Special Agent-in-Charge, Drug Enforcement Administration, New York Division (DEA); Wayne A. Jacobs, Special Agent-in-Charge, Federal Bureau of Investigation, Washington, D.C. Field Office (FBI); Keechant L. Sewell, Commissioner, New York City Police Department (NYPD); and Steven A. Nigrelli, First Deputy Superintendent, New York State Police (NYSP), announced the arrest and charges.
“The arrest and indictment of Gogic, a former boxer allegedly responsible for trafficking a staggering amount of cocaine, more than 20 tons, which he attempted to move through U.S. ports, is a resounding victory for law enforcement,” stated United States Attorney Peace. “The meticulous planning by the defendant and his co-conspirators failed to take into account the federal agents whose hard work resulted in this body blow to the organization and individuals responsible for distributing massive quantities of cocaine.”
Mr. Peace also thanked the U.S. Attorney’s Office for the Eastern District of Pennsylvania for its assistance in the investigation.
“Gogic, as alleged, is a major drug trafficker who, along with his criminal associates, is responsible for overseeing long-range narcotics transportation on container ships as well as the wholesale distribution of cocaine throughout Europe. Today’s arrest sends a message to narcotraffickers worldwide that they are not free to hijack international maritime commerce with impunity,” stated HSI Special Agent-in-Charge Arvelo. “HSI, along with our partners, will continue to leverage our unique investigative authorities to aggressively pursue drug traffickers who seek to exploit legitimate industries.”
“A billion dollars’ worth of cocaine seized was a heavy hit for Gogic’s criminal network, but nothing heavier than his arrest last night,” said DEA Special Agent-in-Charge Tarentino. “As evident in this case, criminal organizations will go to various extremes to make a profit off the sale of poison. Due to the hard work by local, state and federal law enforcement, 20 tons of poison was intercepted en route from Colombia to Europe. Gogic’s arrest underscores law enforcement’s commitment to bringing to justice those responsible for causing the most harm to our communities.”
“Gogic allegedly conspired with drug suppliers, ships' crewmembers, and port workers to traffic massive quantities of cocaine through the U.S. to Europe via commercial cargo ships," said Wayne A. Jacobs, Special Agent in Charge of the FBI Washington Field Office's Criminal/Cyber Division. "His arrest demonstrates the FBI’s and our partners’ global reach and resolve to bring narcotraffickers to justice for violating U.S. laws and exploiting maritime commerce.”
“When building a case against a sophisticated drug trafficker like Goran Gogic, operating on a mammoth scale, it is critical that federal, state, and local law enforcement work in close coordination, sharing resources and information,” stated NYPD Commissioner Sewell. “This arrest and massive seizure demonstrate the effectiveness of HSI New York’s El Dorado Task Force, of which the NYPD has long been a proud partner.”
New York State Police Acting Superintendent Nigrelli said, “This arrest and indictment speaks volumes of the tremendous coordination between law enforcement partners to stop individuals such as Mr. Gogic, from using our waterways to distribute illegal drugs throughout the world. May this arrest send a clear message that we will find and punish the people who are responsible for carrying out such acts. The New York State Police will continue to work with our partners to stop the flow of dangerous drugs in our country and the world.”
As alleged in the indictment and court documents, between May 2018 and July 2019, Gogic conspired with others to distribute massive quantities of cocaine via commercial cargo ships. Gogic coordinated with the sources of the cocaine in Colombia, the crewmembers who transported tons of cocaine on commercial cargo ships on the high seas, and the network of port workers who transported and offloaded the cocaine in Europe via the United States.
Members of the conspiracy loaded the commercial cargo ships at night near the coast and ports, working with crewmembers who would hoist loads of cocaine from speedboats that approached the ships at multiple points along their route. To physically load the cocaine aboard, they used the ship’s cranes as well as nets. Once the cocaine was onboard, the crewmembers would hide it within specific shipping containers that they knew had sufficient room to conceal the large quantities of cocaine and for which they had duplicate counterfeit seals. They selected the specific containers to be used to conceal the cocaine based, in part, on the containers’ location and orientation, and route and destination on board the vessel. This complex operation relied on having to access to each ship’s crew, route, manifest, real-time positioning and geolocation data and a knowledge of what legitimate cargo is contained in each container. The conspiracy used a different set of workers with access to the ports in Europe to clandestinely access and remove the cocaine from the shipping containers upon their arrival.
U.S. law enforcement officers seized three of these shipments:
- The February 27, 2019 seizure of approximately 1,437 kilograms of cocaine secreted aboard the MSC Carlotta at the Port of New York and New Jersey;
- The March 18, 2019 seizure of approximately 537 kilograms of cocaine secreted aboard the MSC Desiree at the Port of Philadelphia; and
- The June 19, 2019 seizure of approximately 17,956 kilograms of cocaine secreted aboard the MSC Gayane at the Port of Philadelphia. The seizure of the cocaine from the MSC Gayane—worth over $1 billion—was one of the largest seizures of cocaine in United States history.
Law enforcement officers also seized significant amounts of cocaine related to the scheme at ports in Panama, Peru, and the Netherlands, among other countries.
If convicted, the defendant faces a mandatory minimum sentence of 10 years in prison and up to life in prison.
The charges in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
HSI New York leads and directs all operational and administrative activities of the El Dorado Task Force (EDTF). The EDTF is comprised of more than 200 law enforcement personnel representing approximately thirty-five (35) federal, state, and local law enforcement and regulatory agencies. The mission of the EDTF is to disrupt, dismantle, or render ineffective, organizations involved in the laundering of proceeds of narcotics trafficking and other financial crimes.
The government’s case is being handled by the Office’s International Narcotics and Money Laundering Section. Assistant United States Attorneys Nomi Berenson and Robert Pollack are in charge of the prosecution.
The Defendant:
GORAN GOGIC
Age: 43
MontenegroE.D.N.Y. Docket No. 22-493 (NM)
两名中国情报官被控阻碍司法公正 策谋贿赂美国政府雇员并窃取对位于中国一家公司 联邦诉讼的有关文件Read the Press Release
今天，一项刑事诉讼在布鲁克林联邦法院启封，指控两名中华人民共和国情报官策划阻挠纽约东区检察院一项刑事诉讼。被告仍然在逃。
法院文件显示，贺国春，又名“何东”和“贺杰克”，与王政，又名“王谮”，涉嫌策谋从美国联邦检察院纽约东区办公室窃取联邦政府对位于中国一家全球电信公司（公司-1）起诉的文件和其他信息，包括向一名美国政府雇员支付约$61,000比特币贿额。被告认为该雇员已被招募为中国政府工作，但事实上该雇员是一个代表联邦调查局（联调局）工作的双重间谍。
美国纽约东区检察官布利昂·皮斯、负责国家安全的助理司法部长马修·G·奥尔森、联调局局长克里斯多弗·雷宣布指控。
美国检察官皮斯表示：“今天的诉讼充分展示了中国政府为破坏法治所作的不懈努力。据指控，此案涉及中国情报官员通过贿赂从本办公室窃取文件并和一个全球通信公司分享，努力阻挠对此公司持续进行的刑事诉讼。我们会始终采取果断行动打击针对我们司法系统的犯罪行为。”
负责国家安全的助理司法部长马修·G·奥尔森指出：“被此案指控的中国情报官的企图和行为远超于收集信息和情报，其实质必须被披露：一个外国政府的代表超乎寻常地干扰美国刑事司法系统的诚信，损害联邦雇员，阻碍美国执法，并为一个位于中国的商业性企业牟利。司法部不会允许其他国家的代表干涉美国刑事程序和调查，不会容忍外国对公正与司法的干预。”
联调局雷局长表示： “联调局的使命是保护美国人民，捍卫美国宪法 - 此案对两者都带来威胁。中华人民共和国情报官试图从纽约东区偷窃文件，不仅危害了刑事司法系统的诉讼程序，而且危害了司法的本意。对司法的威胁是对我们自由社会基础的威胁。联调局时刻保持警惕并致力于保护美国免受这些威胁。”
贺国春与王政被指控试图阻挠纽约东区联邦检察院对公司-1的一宗刑事诉讼。被告贺因为试图进一步促成该阴谋, 支付总值约$61,000比特币贿额，另被指控两项洗钱罪。
根据诉讼，两名被告为中国情报官员，代表中国政府并且为了公司-1的利益，从事针对美国的国外情报行动。自2019年起，他们指使一名他们认为已被招募成功的美国政府执法机构员工（政府雇员-1）窃取对公司-1刑事起诉有关的机密信息，以干扰此案的诉讼。实际上，政府雇员-1是一名代表联调局工作的双重间谍。
2021年9月，两名被告责成政府雇员-1汇报政府雇员-1据称在布鲁克林美国检察院纽约东区办公室与检察官举行的会议。被告在书面沟通中表示他们特别想知道公司-1的哪些员工曾与政府面谈，并想获得检察官所持证据、证人名单和庭审策略的说明。
2021年10月，政府雇员-1 使用加密短信程序向被告发送了有关公司-1案件所谓策略备忘录中的一页。该文件看似归类为“机密” ，提及指控并逮捕两名居住在中国的公司-1现任负责人的计划。[1] 贺国春回应表示这份文件 “正是我在等待的”，他还在“等待某些人的反馈”，看他们对这份文件是否有任何问题。后来贺国春为政府雇员-1偷窃文件支付了约 $41,000比特币。
政府雇员-1亦曾向被告询问有关“机密”文件的任何反馈。2021年11月，贺国春指出“[公司-1] 目前还没有给我具体的反馈，但他们对此显然很感兴趣，我的老板和他们需要更多的资料。”贺国春另外告诉政府雇员-1“[公司-1]显然对”政府雇员-1窃取策略备忘录中另一部分“有兴趣”，并为那些信息“可能会付更多”。2021年12月，在回答政府雇员-1进一步要求公司-1的反馈或指示“他们需要我拿什么”时，贺国春解释说“他们还没有给我任何正面反馈，要求直接和你联系。”贺国春说他拒绝了公司-1直接与政府雇员-1对话的请求因为“这样太危险。”
最近，2022年9月下旬，因为贺国春的“机关已决定给你一笔丰厚的奖金”，贺国春告诉政府雇员-1他准备为政府雇员-1提供的信息再次给政府雇员-1支付比特币 。后来，贺国春于2022年10月付给政府雇员-1约$20,000比特币。
起诉书中的控告只是指控，除非并直到被证明有罪，被告应被视为无罪。如罪名成立，贺国春面临高达60年的监禁，王面临高达20年的监禁。
此案由国家安全和网络犯罪处办理。助理联邦检察官亚历山大·A·所罗门、玛丽迪丝·A·阿法、国家安全司反情报和出口管制处庭审律师斯科特·A·克拉非主理诉讼。
被告人:
贺国春，又名“何东”或 “JACKY HE”
年龄：45
中华人民共和国E.D.N.Y.案卷号 22-MJ-1137
王政，又名 “ZEN WANG”
年龄：37
中华人民共和国E.D.N.Y.案卷号 22-MJ-1137
[1] 诉讼中描述的文件是政府为调查目的而准备的。它既不是从任何与被起诉公司-1相关的实际文件中提取，也不归类为 “机密”。此外，诉讼中政府雇员-1向被告提供的信息并不准确地描述与公司-1诉讼相关的实际会面、通信或其它策略。
ברוקלין ישיבה איז זיך מודה צו שטארק פארשפרייטע פראגראם און בענעפיט שווינדל קאנספיראציעRead the Press Release
צענטראלע פאראייניגטע תלמודישע אקאדעמיע (''CUTA'' אדער ''די שולע''), א ישיבה אין וויליאמסבורג, ברוקלין, האט זיך היינט מודה געווען אין פעדעראלע געריכט אז עס איז געווען פארמישט אין עטלעכע טיילווייזע דעקונג שווינדלען, ווי אויך א מולטי-מיליאן דאלאר פלאן צו באקומען אומיושרדיקע געלטער דעזיגנירט צו פיטערן נויטיקע שולע קינדער. דער פראצעס איז פארגעקומען פארן US דיסטריקט ריכטער ניקאלעס ג. גאראופיס(Nicholas G. Garaufis) .
CUTA איז אריינגעגאנגען אין א דריי יעריקן אפגעלייגטע משפט הסכם מיט דער רעגירונג אין שייכות מיט א קרימענעל אינפארמאציע איינגעגעבן היינט אין דעם מזרח'דיקן דיסטריקט פון ניו יארק וואס באשולדיקט די שולע מיט קאנספירירן צו באגיין עלעקטראנישער שווינדל. אלץ טייל פונעם הסכם, האט די שולע מסכם געווען צו באצאלן 5 מיליאן דאלאר קנס אין צוגאב צו מער ווי 3 מיליאן דאלאר אין פארגיטיקונג וואס איז שוין באצאלט געווארן, צו לייזן די אויספארשונג אין דער שולעס שווינדל אויפפירעכץ.
אלעזר פארגעס(Elozer Porges) , דער פריערדיגע עקזעקוטיווע דירעקטאר פון CUTA, און יואל לוי(Joel Lowy) , פארגעסעס געהילף, האבן זיך ביידע אנערקענט פאר שולדיג אין מארץ 2018 פאר זייער ראלע צו קאנספירירן אויסנארן די רעגירונג. פארגעס איז פארמשפט געווארן צו צוויי יאר אין טורמע אין אקטאבער 2019, בשעת לוי איז פארמשפט געווארן צו פינף יאר פראבע, 1000 שעה פון קאמיוניטי באדינונג און 98,407.21$ אין צוריקקער אין אפריל 2022.
בריאן פיס, US אדוואקאט פארן מזרחדיקע דיסטריקט פון ניו יארק, מייקל דזש. דריסקאל(Michael J. Driscoll) , געהילפ-דירעקטאר ממונה, פעדעראלע ביורא פון אויספארשונג, ניו יארק פעלד אפיס FBI)), בעט-אן מ. דינקינס(Bethanne M. Dinkins) , ספעציעלע אגענט ממונה, US דעפארטמענט אוו אגריקולטור, אפיס פון אלגעמיינער אינספעקטאר USDA-OIG)), און דזשויס ע. שטרויבער(Jocelyn E. Strauber) , קאמיסיאנער, ניו יארק סיטי דעפארטמענט אוו אינוועסטיגעשענס DOI)), האבן געמאלדן דעם אפמאך.
''דער אומאויפפיר פון CUTA, איז געווען סיסטעמאטיש און פארשפרייט, אריינגערעכנט גנב'ענען איבער 3 מיליאן דאלאר פאר שולע-קינדער אין נויט פון מאלצייטן,'' האט US אדוואקאט פיס פעסטגעשטעלט. ''די היינטיג רעזאלוציע גיט צו פארשטיין CUTA's פארמישונג אין די פארברעכעריי און שטעלט צו א וועג פאראויס צוריק צו צאלן און פארריכטן דעם היזק וואס איז געטאן געווארן צו דער קאמיוניטי, אין דער צייט טוט עס אויך ערלויבן CUTA ממשיך זיין צו צושטעלן חינוך פאר קינדער אין דער קאמיוניטי.
''דאס מודה זיין היינט טוט קלאר מאכן אז עס איז געווען א שטארק פארשפרייטע קולטור פון שווינדל און גייציקייט אויפן ארט אין CUTA. מיר רעכענען זיך אז שולעס זענען ערטער ווי מען לערנט אויס סטודענטן זיך צו פירן געהעריק. די פירער פון CUTA האבן זיך מטריח געווען צו טאן פונקט פארקערט, געשאפן פילפאכיקע סיסטעמס פון שווינדל כדי אפנארן די רעגירונג. די FBI און אונדזערע געזעץ-היטער שותפים וועלן ממשיך זיין צו פארשן די סארטן שווינדלעריי און פלענער, צו פארזיכערן רעגירונג פראגראמען בענעפיטן פאר יענע וואס זענען דעזיגנירט געווארן צו ווערן געהאלפן אן ווערן אויסגעניצט,'' האט דער געהילף דירעקטאר ממונה דריסקל ארויסגעזאגט.
די DOI קאמיסיאנערין דזשאסלין ע. שטרויבער האט געזאגט, ''אזוי ווי עס איז פארצייכנט אין דעם משפט הסכם, איז CUTA געווען פארמישט אין א ברייטן פלאן צו גנב'נען מיליאנען דאלארן פון ציבורדיקע געלטער, אוועקפירנדיק געלט וואס איז געשטעלט אויף צו פיטערן שולע-קינדער און צוגעהאלפן שטייער און בענעפיטן שווינדל דורך זייערע ארבעטער. DOI און אירע געזעץ-היטער שותפים אין די US אדוואקאטס אפיס פאר דער מזרח'דיקן דיסטריקט פון ניו יארק, די FBI און די USDA זענען איערגעגעבן צו פארמיידן שווינדלערייען וואס גראבט אונטער ציבור'דיקע הילף פראגראמען. מיט דער רעזעלוציע, וואס איז כולל א 5 מיליאן דאלאר קנס, האט CUTA אנערקענט און וועט טראגן דאס אחריות פאר איר שלעכטע אויפפירונג.
''USDA אפיס פון אלגעמיינער אינספעקטאר, ספעציעלע אגענט ממונה בעט-אן מ. דינקינס האט געזאגט: דאס קינד און דערוואקסענע קעיר עסן פראגראם (CACFP) איז באשאפן געווארן צו צושטעלן עסנווארג און שפייזונג צו יענע וואס נויטיקן זיך שטארק אויף דער הילף. יענע וואס נעמען אנטייל אין שווינדל און קרומבאניץ פון USDA פיטער פראגראמען וועלן ווערן געפארשט דורך אונדזער אפיס מיטן פולסטן פארנעם. אונדזער בשותפות'דיקע אויספארשונג מיט די פעדעראלע ביורא פון אויספארשונג און דער ניו יארק סיטי דעפארטמענט פון אויספארשונג אידענטיפיצירט יענע וועלכע זוכן צו פארדינען פון דער CACFP דורך אומלעגאלע פלענער. די USDA אפיס פון אלגעמיינעם אינספעקטאר וועט ממשיך זיין זיך אפגעבן צו פארש-רעסורסן, וואס וועט ארבעטן מיט אונדזער געזעץ-היטער און פראקורירישע שותפים, כדי אפצוהיטן די ערלעכקייט פון די פראגראמען און ברענגען אין געריכט די וואס באגייען שווינדל.
לויט די שולד אנערקענונג פון דעם באריכט פון די פאקטן און אנדערע פובליק דאקומענטן, צווישן 2014 און 2016, האט CUTA באקומען מער ווי 3.2 מיליאן דאלאר אויסגעצאלט פאר אן עסנווארג פראגראם געצילט צו פיטערן סטודענטן פון דער ישיבה. די פראגראם איז געווען כמעט אינגאנצן פאלש. אנשטאט פיטערן די קינדער, האט די שולע געפירט דאס געלט אין אן אנדער ריכטונג, ווי אויך סובסידירט מסיבות פאר דערוואקסענע. צו באגיין דאס פארברעכעריי, האט די שולע פאבריצירט רעקארדס און געמאכט צענדליגע געשוואוירענע פארדרייטע פאקטן צו רעגירונגס אגענטורן.
בשעת דעם אויספארש וועגן די פאלשע עסנווארג פראגראם, האבן די אויספארש קאמאנדע אנטדעקט באווייזן פון נאך אנדערע שווינדלערישע התנהגות'ן ביי דער שולע און אירע ארבעטער. אין צוגאב צו דער אויבנדערמאנטער פאלשער פראגראם, איז געווען פארשידענע שכירות פירעכצער וואס האט ערלויבט די שולעס איינגעשטעלטע אפטאן בענעפיט און שטייער שווינדלערייען.
צום ביישפיל, די שולע האט באצאלט אירע איינגעשטעלטע אויף אן אויפן וואס האט שטארק אונטער-רעפרעזענטירט זייערע איינגעשטעלטע ''אויף די ביכער'' הכנסות. די שולע האט דאס אויסגעפירט אויף עטלעכע אופנים. אויסער באצאלן אירע איינגעשטעלטע מיט מזומן, האט די שולע צוגעשטעלט אירע ארבעטער מיט ''קופאנען'' וואס מ'קען אויסלייזן אין לאקאלע געשעפטן פאר א געוויסע מזומן-ווערדע. די איינגעשטעלטע קענען נוצן די קופאנען איינצוקויפן, און די געשעפטן האבן דאן אויסגעלייזט די קופאנען אין די שולע פאר געלט. די ''קופאנען'' האבן אזוי נאך געהאלפן באשאפן אן אונטערערדישע עקאנאמיע, אין וועלכע די איינגעשטעלטע האבן באקומען נוצלעכע הכנסה אומבאקאנט צו דער רעגירונג. די שולע האט צוגעשטעלט אנדערע ''נישט אויף די ביכער'' הכנסות אין אנדערע וועגן, אזוי ווי דורך באהאלטענע אינוועסטירונג קאנטעס.
דער אויספארש האט פעסטגעשטעלט אז די שולע האט זיך באטייליגט אין די מעשים, אין טייל, צו העלפן דערגאנצן שווינדלערייען אויסגעפירט דורך אירע ארבעטער. דורך אונטעררעפרעזענטירן אירע איינגעשטעלטעס הכנסה, האט CUTA דערמעגלעכט אירע ארבעטער צו באקומען פארשידענע פובליק בענעפיטן - ווי אויך העלטקעיר און קינדקעיר - וואס זיי וואלטן נישט געקענט באקומען אויב די איינגעשטעלטע וואלטן באריכט ערלעך זייער הכנסה. די שולע האט ווייטער געשטיצט די באמיאונגען דורך צושטעלן בריוו צו רעגירונג אגענטורן וואס האבן פאלש געשריבן אז זייערע ארבעטער האבן נאר פארדינט די ''אויף די ביכער'' סכומים וואס די שולע האט אריינגעגעבן צו די שטייער אויטאריטאטן, אזוי נאך ערלויבן זייערע איינגעשטעלטע צו באגיין וועלפעיר און אנדערע בענעפיטן שווינדלערייען. די שולע, ווידער, האט אויך פארדינט פון אירע ארבעטערס פארדרייאונגען, ווייל זי האט אנגענומען און איינקאסירט קינד-קעיר קופאנען וואס די סטעיט האט צוגעשטעלט צו אירע איינגעשטעלטע, וועלכע איר ארבעטער האבן נאר קוואליפיצירט צוליב די שולעס אייגענע פאלשע-אויסטייטשונגען. דער אנגעקלאגטער יואל לוי איז געווען איינער צווישן אסאך CUTA איינגעשטעלטע וואס האט זיך באניצט מיט דעם דריידל.
דערצו, צו דעם אויבנדערמאנטער שכירות שווינדל, האט די שולע צוגעשטעלט ''באווייז זיך נישט'' ארבעט פאר נישט קיין איינגעשטעלטע, וואס האט גורם געווען צו ''פאסטאראטן'' שטייער פרייהייטן פאר אזעלכע וואס שטעלן נישט צו פאסטאראט סערוויסעס, אויסגעזוכט און באקומען טעכנעלאגיע געלטער פאר נישט קיין שייכות'דיקע באניץ צו דער שולעס עדיוקעישענעל צוועקן און צוגעשטעלט קינד-קעיר סערוויסעס אָן קיין געהעריגע לייסענסעס.
אזוי ווי פארשריבן אין דעם הסכם, האט דער אפיס דערגרייכט א רעזעלוציע מיט דער שולע, אין טייל, צוליב די שולעס פארבעסערונג באמיאונגען, אסאך זענען שוין איינגעפירט געווארן פאר א פּּאָר יאר. אין דערצו, אין אנערקענען און צו צושטעלן א נול-טאלעראנץ פאליסי צו דעם אויבנדערמאנטע אויפפירעכץ, האט די שולע אנגענומען א רייע פון ממשות'דיגע פונדעמענטאלע ענדערונגען. צווישן אנדערע זאכן, האט זי אויסגעטוישט אירע עקזעקוטיווע אדמיניסטראציע פערסאנאל; אנטוויקעלט א זאץ פון פינאנציעלע און פראצעדורעלע קאנטראלען; איינגעפירט אן אויספאלג האנטביכל צו פירן און אננעמען עטישע באשליסונגען; באשאפן אן אויפזע קאמיסיע, אכטונג געבן, איינצופירן די נייע סטאנדארטן; און דורכגעפירט רעוויזיעס צו פארזיכערן כסדר'דיקע אויספאלגונג. דערצו, צום שטראף און רעסטיטוציע דערמאנט אויבן, וועט די שולע זיין אויסגעשטעלט צו דער השגחה פון אן אומאפהענגיקער קאנטראלירער אויף א תקופה פון דריי יאר. דער קאנטראלירער וועט שאצן די שולעס אויספאלגונג מיט דעם אפגעלייגטע פראקורירונג הסכם און פארזיכערן אז די שולע טוט ווייטער אויספאלגן אירע לעגאלע און עטישע אבליגאציעס.
דער הסכם וואס מ'האט היינט געמאלדן איז טייל פון אן אויספארשונג וואס איז געווארן אנגעפירט דורך דער US אדוואקאטס אפיס פאר דער מזרח'דיקע דיסטריקט פון ניו יארק, די FBI's ניו יארק פעלד אפיס, USDA אפיס פון אלגעמיינער אינספעקטארס אפיס פון פארשונגען צפון מזרח געגנט אפיס און דער ניו יארק סיטי דעפארמענט פון אויספארשונגען. דער קעיס ווערט באהאנדעלט ביי דער אפיסעס פובליק גאנצקייט אפטייל. דער געהילף US אדוואקאט עריק פאולסון(Erik Paulsen) איז דער אחראי פון די פראקורירונג.
דער אנגעקלאגטע:
CENTRAL UNITED TALMUDIC ACADEMY
Brooklyn, New York
E.D.N.Y. Docket No. 22-CR-378 (NGG)Two Chinese Intelligence Officers Charged with Obstruction of Justice in Scheme to Bribe U.S. Government Employee and Steal Documents Related to the Federal Prosecution of a PRC-Based CompanyRead the Press Release
A criminal complaint was unsealed today in federal court in Brooklyn charging two People’s Republic of China (PRC) intelligence officers with attempting to obstruct a criminal prosecution in the Eastern District of New York. The defendants remain at large.
According to court documents, Guochun He, also known as “Dong He” and “Jacky He,” and Zheng Wang, also known as “Zen Wang,” allegedly orchestrated a scheme to steal files and other information from the U.S. Attorney’s Office for the Eastern District of New York related to the ongoing federal criminal investigation and prosecution of a global telecommunications company (Company-1) based in the PRC, including by paying approximately $61,000 in Bitcoin bribes to a U.S. government employee who the defendants believed had been recruited to work for the PRC, but who in fact was a double agent working on behalf of the Federal Bureau of Investigation (FBI).
Breon Peace, United States Attorney for the Eastern District of New York; Matthew G. Olsen, Assistant Attorney General for National Security; and Christopher Wray, Director, FBI, announced the charges.
“Today’s complaint underscores the unrelenting efforts of the PRC government to undermine the rule of law,” stated United States Attorney Peace. “As alleged, the case involves an effort by PRC intelligence officers to obstruct an ongoing criminal prosecution by making bribes to obtain files from this Office and sharing them with a global telecommunications company that is a charged defendant in an ongoing prosecution. We will always act decisively to counteract criminal acts that target our system of justice.”
“Far more than an effort to collect information or intelligence, the actions of the PRC intelligence officers charged in this case must be called out for what they are: an extraordinary intervention by agents of a foreign government to interfere with the integrity of the U.S. criminal justice system, compromise a U.S. government employee, and obstruct the enforcement of U.S. law to benefit a PRC-based commercial enterprise,” stated Assistant Attorney General for National Security Matthew G. Olsen. “The Department of Justice will not abide nation-state actors meddling in U.S. criminal process and investigations, and will not tolerate foreign interference with the fair administration of justice.”
“The mission of the FBI is to protect both the American people and uphold the Constitution of the United States—and this case represents a threat to both,” stated FBI Director Wray. “By attempting to steal documents from the Eastern District of New York, intelligence officers from the People’s Republic of China threatened not just the proceedings of our criminal justice system but the very idea of justice itself. A threat to justice is a threat to the foundation of our free society, and the FBI remains constantly vigilant and committed to protecting the U.S. from these threats.”
Guochun He and Zheng Wang are charged with attempting to obstruct a criminal prosecution of Company-1 in federal district court in the Eastern District of New York. Defendant He also is charged with two counts of money laundering based upon bribe payments totaling approximately $61,000 in Bitcoin, made in furtherance of the scheme.
According to the complaint, the defendants are PRC intelligence officers conducting foreign intelligence operations targeting the United States, on behalf of the PRC government and for the benefit of Company-1. Starting in 2019, they directed an employee at a U.S. government law enforcement agency (GE-1), whom they believed they had recruited as an asset, to steal confidential information about the criminal prosecution of Company-1 in order to interfere with that prosecution. In actuality, GE-1 was working as a double agent on behalf of the FBI.
In September 2021, the defendants tasked GE-1 with reporting about meetings that GE-1 was purportedly having with prosecutors in Brooklyn at the U.S. Attorney’s Office for the Eastern District of New York. In written communications, the defendants said they were particularly interested in knowing which Company-1 employees had been interviewed by the government and in obtaining a description of the prosecutors’ evidence, witness list, and trial strategy.
In October 2021, GE-1 used an encrypted messaging program to send the defendants a single page from a purported internal strategy memorandum from the U.S. Attorney’s Office for the Eastern District of New York regarding the Company-1 case. The document appeared to be classified as “SECRET” and to discuss a plan to charge and arrest two current Company-1 employees living in the PRC.[1] Guochun He responded that the document was “exactly what I am waiting for” and that he was “waiting for the feedback from some guys” about whether there were any questions about the document. Guochun He then paid GE-1 approximately $41,000 in Bitcoin for stealing that document.
GE-1 also asked the defendants for any feedback about the “SECRET” document. In November 2021, Guochun He stated that “[Company-1] didn’t give me specifically feedback now yet, but they are obviously interested in it, and my boss and they need further information.” Guochun He further told GE-1 that “[Company-1] obviously will be interested” in GE-1 stealing another part of the strategy memorandum, and “maybe will offer more” for that information. In December 2021, in response to a further request by GE-1 for feedback or guidance from Company-1 about “what they want me to get,” Guochun He explained that “they didn’t give me any positive feedback yet, and demanded to communicate with you directly.” Guochun He said that he refused Company-1’s request to speak directly to GE-1 because “it’s too dangerous.”
More recently, in late September 2022, Guochun He told GE-1 that he intended to provide GE-1 with additional payment in Bitcoin for the information GE-1 had provided, because Guochun He’s “organization already decided to give a good reward to you.” Guochun He subsequently, in October 2022, paid GE-1 approximately $20,000 in Bitcoin.
The charges in the complaint are allegations, and the defendants are presumed innocent unless and until proven guilty. If convicted, Guochun He faces up to 60 years of imprisonment and Wang faces up to 20 years of imprisonment.
The government’s case is being handled by the Office’s National Security and Cybercrime Section. Assistant United States Attorneys Alexander A. Solomon and Meredith A. Arfa and Trial Attorney Scott A. Claffee of the National Security Division’s Counterintelligence and Export Control Section are in charge of the prosecution.
The Defendants:
Guochun HE, also known as “DONG HE” or “JACKY HE”
Age: 45
PEOPLE’s REPUBLIC OF CHINAE.D.N.Y. Docket No. 22-MJ-1137
ZHENG WANG, also known as “ZEN WANG”
Age: 37
PEOPLE’s REPUBLIC OF CHINAE.D.N.Y. Docket No. 22-MJ-1137
[1] The documents described in the complaint were prepared by the government for purposes of the investigation and were neither taken from any actual document related to the prosecution of Company-1 nor classified as “SECRET.” Furthermore, the information in the complaint that was provided by GE-1 to the defendants did not accurately recount actual meetings, communications, or other strategy related to the Company-1 prosecution.
Long Island Man Sentenced to 28 Years' Imprisonment for Creating and Distributing Child PornographyRead the Press Release
Earlier today, at the federal courthouse in Central Islip, United States District Judge Joanna Seybert sentenced Christopher Bertsch to 28 years in prison for sexual exploitation of a child. As part of his sentence, Bertsch must register as a sex offender upon his release from prison and not have unsupervised contact with minors. Bertsch pleaded guilty to the charge in November 2020.
Breon Peace, United States Attorney for the Eastern District of New York, and Michael J. Driscoll, Assistant-Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the sentence.
“Today’s sentence removes a dangerous predator who not only abused minors and created videos of it but, horrifically, also operated a chat room where he instructed adults on how to abuse minors and to create and share images of it,” stated United States Attorney Peace. “The outstanding undercover work of the FBI made this prosecution possible. I urge parents and caregivers to encourage their children to tell a trusted adult if anyone asks them to engage in inappropriate behavior. Protecting children and holding those who harm vulnerable victims accountable for their actions are priorities of our Office.”
As set forth in the government’s sentencing memorandum and other court filings as well as on the record in court proceedings, Bertsch sexually abused an 18-month-old toddler, created child pornography with that victim and others, and generated a large collection of child pornography, including what he created and what he received from members of the chat room he operated. Bertsch’s child pornography trove included dozens of videos and hundreds of images of child pornography depicting the defendant engaged in sexual conduct with children. An analysis of his chat room activity revealed that Bertsch sent the images of himself abusing children to others.
In addition, in the chat room he operated, Bertsch instructed other adults on how to initiate and carry out sexual abuse of children, while recording it at the same time. Admission to Bertsch’s chat room required photographic proof of the applicant with a minor under their control. Bertsch shared photos of his sexual abuse of children and encouraged others to engage in such abuse and record it for his viewing.
This prosecution is part of Project Safe Childhood, a nationwide initiative led by the Department of Justice to combat the epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorneys Charles P. Kelly and Madeline O’Connor are in charge of the prosecution.
The Defendant:
CHRISTOPHER BERTSCH
Age: 38
Wantagh, New York
E.D.N.Y. Docket No. 20-CR-109 (JS)Brooklyn Yeshiva Admits to Pervasive Program and Benefit Fraud ConspiracyRead the Press Release
Central United Talmudic Academy (“CUTA” or “the School”), a yeshiva in Williamsburg, Brooklyn, admitted today in federal court that it was involved in several overlapping frauds, including a multi-million dollar scheme to wrongfully obtain funds designated to feed needy schoolchildren. The proceeding was held before United States District Judge Nicholas G. Garaufis.
CUTA has entered into a three-year deferred prosecution agreement with the government in connection with a criminal information filed today in the Eastern District of New York charging the school with conspiring to commit wire fraud. As part of this agreement, the School has agreed to pay $5 million in penalties, in addition to more than $3 million in restitution it has already paid, to resolve the investigation into the school’s fraudulent conduct.
Elozer Porges, the former executive director of CUTA, and Joel Lowy, Porges’s assistant, both pleaded guilty in March 2018 for their roles in the conspiracy to defraud the government. Porges was sentenced to two-years’ imprisonment in October 2019, while Lowy was sentenced to five-years’ probation, 1000 hours of community service and $98,407.21 in restitution in April 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), Bethanne M. Dinkins, Special Agent-in-Charge, United States Department of Agriculture, Office of Inspector General (USDA-OIG), and Jocelyn E. Strauber, Commissioner, New York City Department of Investigation (DOI), announced the agreement.
“The misconduct at CUTA was systemic and wide ranging, including stealing over $3 million allocated for schoolchildren in need of meals,” stated United States Attorney Peace. “Today’s resolution accounts for CUTA’s involvement in those crimes and provides a path forward to repay and repair the damage done to the community, while also allowing CUTA to continue to provide education for children in the community.”
“Today’s admission makes clear there was a pervasive culture of fraud and greed in place at CUTA. We expect schools to be places where students are taught how to do things properly. The leaders of CUTA went out of their way to do the opposite, creating multiple systems of fraud in order to cheat the government. The FBI and our law enforcement partners will continue to investigate these types of frauds and schemes to ensure government programs benefit those they were designed to help without being exploited,” stated Assistant Director-in-Charge Driscoll.
DOI Commissioner Jocelyn E. Strauber said, “As detailed in the prosecution agreement, CUTA engaged in an extensive scheme to steal millions of dollars in public funds, diverting money intended to feed schoolchildren and facilitating tax and benefit fraud by its employees. DOI and its law enforcement partners in the United States Attorney's Office for the Eastern District of New York, the FBI and the USDA are committed to the prevention of fraud that undermines public assistance programs. With this resolution, which includes a $5 million penalty, CUTA has acknowledged and will be held accountable for its misconduct.”
“USDA Office of Inspector General, Special Agent-in-Charge Bethanne M. Dinkins stated: The Child and Adult Care Food Program (CACFP) 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. Our joint investigation with the Federal Bureau of Investigation and the New York City Department of Investigation identified those who sought to profit from the CACFP 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.”
According to admissions in the statement of facts and other public documents, between 2014 and 2016, CUTA received more than $3.2 million in reimbursement for a meal program that purported to feed students of the yeshiva. The program was almost entirely fictitious. Rather than feed its children, the School diverted the funding, including to subsidize parties for adults. To commit the crime, the School fabricated records and made dozens of sworn misrepresentations to government agencies.
During the investigation into the fictitious meal program, the investigative team uncovered evidence of other fraudulent conduct by the School and its employees. In addition to the program fraud noted above, this included various payroll practices that enabled the School’s employees to commit benefit and tax fraud.
For example, the School paid its employees in a manner that grossly underrepresented their employees’ “on the books” income. The School accomplished this in several ways. In addition to paying its employees in cash, the School provided its employees with “coupons” that were redeemable at local stores for a specific cash value. Employees could use these coupons to make purchases, and the stores would then redeem the coupons back to the school for payment. These “coupons” thus facilitated the creation of an underground economy, in which employees obtained usable income unknown to the government. The school provided additional “off the books” income in other ways, such as through undisclosed investment accounts.
The investigation determined that the School engaged in these practices, in part, to facilitate additional frauds committed by its employees. By underrepresenting its employees’ income, CUTA enabled its employees to obtain various public benefits—including health care and childcare—that would not have been available if the employees honestly reported their income. The School further supported these efforts by providing letters to government agencies falsely stating that their employees only earned the “on the books” amount the School disclosed to the taxing authorities, thus enabling their employees to commit welfare and other benefits fraud. The School, in turn, also benefited from its employees misrepresentations, as it then accepted and cashed child care vouchers provided to its employees’ by the State, which its employees only qualified for as a result of the School’s own misrepresentations. Defendant Joel Lowy was among the many CUTA employees to avail themselves of this scheme.
In addition to the payroll fraud described above, the School also provided no-show jobs to non-employees, facilitated “parsonage” tax exemptions for individuals who did not provide parsonage services, sought and obtained technology funding for uses unrelated to the school’s educational purposes and provided child care services without proper licenses.
As outlined in the agreement, the Office reached this resolution with the School, in part, due to the School’s remedial efforts, many of which have been in effect for several years. In addition to recognizing and applying a zero-tolerance policy to the conduct described above, the School engaged in a series of significant structural changes. Among other things, it replaced its executive management team; developed a set of financial and procedural controls; instituted a compliance manual to guide ethical decision-making; created an oversight committee to oversee the implementation of the new standards; and conducted audits to ensure ongoing compliance. In addition to the fine and restitution referenced above, the School will be subject to the supervision of an independent Monitor for a three-year period. The Monitor will assess the School’s compliance with the deferred prosecution agreement and ensure that the School continues to follow its legal and ethical obligations.
The agreement announced today is part of an investigation led by the U.S. Attorney’s Office for the Eastern District of New York, the FBI’s New York Field Office, USDA Office of Inspector General’s Office of Investigations’ Northeast Regional Office and the New York City Department of Investigation. The case is being handled by the Office’s Public Integrity Section. Assistant U.S. Attorney Erik Paulsen is in charge of the prosecution.
The Defendant:
CENTRAL UNITED TALMUDIC ACADEMY
Brooklyn, New York
E.D.N.Y. Docket No. 22-CR-328 (NGG)Two Defendants Convicted of Armed Robbery at Aqueduct RacetrackRead the Press Release
Earlier today, a federal jury in Brooklyn convicted Lafayette Morrison of Hobbs Act robbery and conspiracy to commit Hobbs Act robbery in connection with the March 7, 2020 armed robbery of more than $280,000 in cash from Aqueduct Racetrack in South Ozone Park, Queens. Morrison and co-defendant Lamel Miller were also convicted of brandishing a firearm, and Morrison of obstruction of justice. Miller pleaded guilty to the robbery in September 2022. When sentenced, the defendants each face minimum sentences of seven years’ imprisonment, and up to life imprisonment. The verdict followed a five-day trial before United States District Court Judge Ann M. Donnelly.
Breon Peace, United States Attorney for the Eastern District of New York, John B. DeVito, Special Agent-in-Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives, New York Field Division (ATF), and Keechant L. Sewell, Commissioner, New York City Police Department (NYPD), announced the verdict.
“Their armed robbery of Aqueduct Racetrack played out like a Hollywood movie heist, but with a bad ending for the defendants who now face steep prison sentences,” stated United States Attorney Peace. “Today’s verdict proves once again that it is a losing bet to commit a violent crime and think that you will outrun the law.”
“This should serve as a warning to those who believe that armed robbery will be tolerated by the law enforcement community and the public,” said ATF Special Agent-in-Charge DeVito. “The men and women of ATF, and our NYPD partners in the ATF Strategic Pattern Armed Robbery and Technical Apprehension (SPARTA) Group, are at work daily to investigate and arrest those who believe they can prey on New Yorkers without consequence. Thanks to the NYPD’s Queens Robbery Squad and U.S. Attorney's office for the outcome of this case.”
“This violent robbery plot, featuring a racetrack security guard who betrayed his duty, showed a callous disregard for several victims,” said NYPD Commissioner Sewell. “Thanks to our joint law enforcement efforts, those responsible will now bear the consequences of their despicable acts. I want to thank our NYPD officers, the U.S. Attorney for the Eastern District, the ATF’s New York Field Division, and everyone involved in this case for their exceptional work.”
As proven at trial, at approximately 10 p.m. following the Gotham Day stakes races at Aqueduct, Miller and a co-conspirator held up at gunpoint several racetrack employees – including Morrison, who was employed as a racetrack security guard – as they were transporting more than $284,000 in cash earnings to a vault. Miller and the co-conspirator emerged from their hiding spot in a stairwell and confronted the employees at gunpoint, taking the cash and employees’ cell phones, and forcing the employees into a closet. Miller and the co-conspirator then went to a hotel where they divided up the robbery proceeds; they each took $100,000 and gave the remaining $84,000 to Morrison who had posed as a victim during the robbery, but who was actually the robbery crew’s “inside man,” providing information in advance about where and when the money would be transported to the vault. When interviewed by federal law enforcement officers after the robbery, Morrison repeatedly lied to officers, including by claiming to be a victim of the crime and misidentifying a photograph of his childhood friend, Miller.
Assistant United States Attorneys Matthew R. Galeotti and Rachel A. Bennek are in charge of the prosecution, with the assistance of Paralegal Specialist Anna November.
The Defendants:
LAMEL MILLER
Age: 39
Queens, New YorkLAFAYETTE MORRISON
Age: 39
Jamaica, QueensE.D.N.Y. Docket Nos. 20-CR-216 (AMD)
Former Owner of Long Island Commercial Check Cashing Companies Sentenced to 48 Months in Prison for Fraud SchemeRead the Press Release
Earlier today, in federal court in Central Islip, John Drago, the former owner/operator of several check cashing businesses on Long Island, was sentenced to 4 years in prison for illegally structuring financial transactions and payroll tax evasion. The proceeding took place before United States District Judge Gary R. Brown. In addition to his prison sentence, Judge Brown ordered Drago to forfeit $253,000 and to pay restitution of approximately $593,000. Drago pleaded guilty to fraud charges in September 2021. As a result of his plea, Drago was required to surrender his check cashing licenses, his federal money services business registrations and he is barred from applying for any such licenses or registrations in the future.
Breon Peace, United States Attorney for the Eastern District of New York, and Thomas Fattorusso, Special Agent-in-Charge, Internal Revenue Service Criminal Investigation, New York (IRS-CI) announced the sentence.
“Drago operated his check cashing business as a haven for tax cheats like himself, concealing over $9.5 million from the federal government,” stated United States Attorney Peace. “Today’s sentence demonstrates that significant consequences follow business owners who place greed above public good.”
Mr. Peace expressed his thanks to the New York State Department of Financial Services for their assistance.
"Drago used his seemingly legitimate check cashing business to defraud the government while lining his pockets. Over several years, he used his employees do his dirty work and, at his request, they cashed checks in a way to avoid IRS reporting requirements, concealing more than $9.5 million in check cashing transactions. His scheme to make some extra cash has now resulted in him spending time behind bars, where he will no longer have any pockets to be lined," said Thomas Fattorusso, Special Agent in Charge of IRS-CI.
According to court filings and facts presented at the plea and sentencing proceedings, Drago owned and operated check cashing businesses on Long Island, including Kayla Check Cashing Corp., North Island Check Cashing Corp., South Island Check Cashing Corp., East Island Check Cashing Corp., Bay Shore Check Cashing Corp. and Brentwood Check Cashing Corp. (collectively, the “Kayla Companies”). Financial institutions are required to file a Currency Transaction Report (CTR) for each cash transaction in excess of $10,000. In addition, a CTR is required to be filed by the financial institution when multiple checks, the total value of which exceeds $10,000, are cashed in a single day.
From January 2010 to October 31, 2013, Drago instructed employees to cash multiple checks in excess of $10,000 in a single day for certain customers without filing required CTRs. In addition, to avoid the required CTR filings, Drago directed employees to deposit and cash checks that had been submitted together on a single day in amounts in excess of $10,000. Drago also instructed employees to tell certain customers who presented individual checks in amounts exceeding $10,000 to return with multiple checks in amounts that were less than $10,000 to avoid the reporting requirement for such financial transactions. As a result of Drago’s scheme, more than $9.5 million in check cashing transactions were concealed from the IRS.
Between April 1, 2012 and July 31, 2013, Drago paid overtime wages and commissions to employees of the Kayla Companies in cash and failed to inform the IRS of the payment of these cash wages. Drago falsely underreported to the IRS the gross wages paid to his employees to avoid paying the full amount of Federal Insurance Contribution Act taxes that the Kayla Companies owed. In addition, as part of his plea, Drago agreed to pay restitution to the IRS for evading personal income taxes between 2010 and 2013. Overall, Drago’s payroll and personal tax evasion cost the IRS approximately $590,000.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorneys Burton T. Ryan, Jr., Bradley T. King and Madeline O’Connor are in charge of the prosecution.
The Defendant:
JOHN DRAGO
Age: 58
Central Islip, New YorkE.D.N.Y. Docket No. 18-CR-394 (S-1) (GRB)
Six Individuals Charged with Conspiring to Act as Illegal Agents of the People's Republic of ChinaRead the Press Release
An eight-count indictment was unsealed today in federal court in Brooklyn charging a total of seven nationals of the People’s Republic of China (PRC)—Quanzhong An, his daughter Guangyang An, Tian Peng, Chenghua Chen, Chunde Ming, Xuexin Hou, and Weidong Yuan—with participating in a scheme to cause the forced repatriation of a PRC national residing in the United States. The lead defendant, Quanzhong An, allegedly acted at the direction and under the control of various officials with the PRC’s government’s Provincial Commission for Discipline Inspection (Provincial Commission)—including Peng, Chen, Ming, and Hou—to conduct surveillance of and engage in a campaign to harass and coerce a U.S. resident to return to the PRC as part of an international extralegal repatriation effort known as “Operation Fox Hunt.”
Quanzhong An and Guangyang An were arrested this morning and are scheduled to be arraigned this afternoon before United States Magistrate Judge Ramon E. Reyes, Jr. The remaining defendants remain at large.
Breon Peace, United States Attorney for the Eastern District of New York; Matthew G. Olsen, Assistant Attorney General of the Justice Department’s National Security Division; and Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the arrests and charges.
“As alleged, the defendants engaged in a unilateral and uncoordinated law enforcement action on U.S. soil on behalf of the government of the People’s Republic of China, in an effort to cause the forced repatriation of a U.S. resident to China,” stated United States Attorney Peace. “The United States will firmly counter such outrageous violations of national sovereignty and prosecute individuals who act as illegal agents of foreign states.”
Mr. Peace thanked the Internal Revenue Service Criminal Investigations for its work on the case.
“The victims in this case sought to flee an authoritarian government, leaving behind their lives and family, for a better life here. That same government sent agents to the United States to harass, threaten, and forcibly return them to the People's Republic of China. The actions we allege are illegal, and the FBI will not allow adversaries to break laws designed to protect our nation and our freedom,” stated FBI Assistant Director-in-Charge Driscoll.
As alleged in the indictment, the defendants participated in an international campaign to threaten and intimidate John Doe-1, a resident of United States, and his family to force John Doe-1 to return to the PRC. These efforts were part of “Operation Fox Hunt,” an initiative by the PRC’s Ministry of Public Security to locate and repatriate alleged fugitives who flee to foreign countries, including the United States. The PRC government has targeted these alleged fugitives and their families to compel cooperation with the PRC government and self-repatriation to the PRC. The PRC government has taken such law enforcement actions on U.S. soil in a unilateral manner without approval, of or coordination with, the U.S. government.
Quanzhong An, who is a businessman operating in Queens, New York, and the majority shareholder of a hotel in Flushing, acted as the primary U.S.-based liaison for the Provincial Commission’s targeting of John Doe-1 and his family members, including his son, John Doe-2, both in the United States and in the PRC. As part of the scheme, various PRCbased conspirators forced a relative in the PRC (John Doe-3) to travel from the PRC to the United States in September 2018 to meet with John Doe-2 and convey threats that were intended to coerce John Doe-1’s return to the PRC. Yuan—John Doe-3’s superior at the PRC’s State Administration of Taxation—escorted John Doe-3 from the PRC to the United States, under the guise of a visit with a tour group.
On September 11, 2018, John Doe-2 met with John Doe-3 at a restaurant in Queens. In the recorded meeting, John Doe-3 explained that he had been forced to travel to the United States by the Provincial Commission, which wanted to repatriate the 100 most wanted fugitives, a group that purportedly includes John Doe-1. Yuan then joined John Doe-2 and John Doe-3 at the restaurant and indicated that he had been “tasked to relay the message” to John Doe-1 that the “leadership in China would like to encourage the elite overseas Chinese to return” and that the PRC government had already caused the repatriation of 80 of the 100 most wanted fugitives. Yuan explained that he had made “a special trip here,” as John Doe-1’s issue needed to be resolved “sooner or later,” and John Doe-1 needed to return to the PRC.
PRC-based defendants and coconspirators also engaged in a pattern of harassment targeting John Doe-1’s family members. In November 2017, Hou wrote John Doe-2 warning him that “coming back and turning yourself in is the only way out.” Hou further threatened that “avoidance and wishful thinking will only result in severe legal punishments.”The PRC government also harassed John Doe-1 and John Doe-2 through the filing of a lawsuit in New York State court, alleging that John Doe-1 had stolen funds from his former PRC based employer and that John Doe-2 had knowledge of and benefitted from his father’s scheme.
In a series of recorded meetings in 2020, 2021, and 2022, Quanzhong An repeatedly met with John Doe-2 and attempted to persuade John Doe-2 to cause the return of John Doe-1 to the PRC. In these meetings, Quanzhong An acknowledged that he is a member of the Standing Committee of the Chinese People’s Political Consultative Conference (CPPCC), which enforces the rules and regulations of the Chinese Communist Party (CCP) abroad. At various times, he attributed his instructions to Chen, Ming, and Peng and acknowledged that the Fox Hunt operation was motivated by the PRC government’s need to “save their faces” and repatriate as many fugitives as possible.
In the meetings, Quanzhong An admitted that the civil lawsuit filed against John Doe-1 and John Doe-2 would be withdrawn if John Doe-1 returned to the PRC. He stated that “they are still suing you to place additional pressure on you” and “will keep pestering you through a lawsuit” because the cost of it “really is a drop in the bucket for a country to spend $1 billion or $0.8 billion to meet the political task assigned by the Central Government.”
Quanzhong An admitted that he was acting as an agent of the Provincial Commission to increase his standing in the PRC. During his meetings with John Doe-2, Quanzhong An repeatedly transmitted threats on behalf of the PRC government. If John Doe-1 did not return, the PRC government would “keep pestering you, [and] make your daily life uncomfortable,” in addition to actions to “target and monitor” John Doe-1’s relatives in the PRC. On another occasion, he stated that “they will definitely find new ways to bother you” and “it is definitely true that all of your relatives will be involved.”
As set forth in the detention memorandum, Quanzhong An met with John Doe-2 again on September 29, 2022. During this meeting, Quanzhong An pressed for John Doe-1 to execute an agreement to return to the PRC in advance of the CCP’s 20th National Congress,
which began on October 16, 2022. As part of such agreement, Quanzhong An sought a written confession from John Doe-1, which would be submitted directly to the PRC government.As also alleged in the indictment, Quanzhong An and Guangyang An engaged in a money laundering scheme involving millions of dollars from the PRC to the U.S. financial system. As part of the scheme, the defendants and their coconspirators repeatedly lied to U.S.
financial institutions to obscure the ownership and control of the funds. As a result of the money laundering charge, the government has charged forfeiture allegations against Quanzhong An’s hotel in Flushing, New York, as well as the defendants’ residences in Roslyn, New York.The charges in the indictment are allegations, and the defendants are presumed innocent unless and until proven guilty. If convicted of acting as agents of the PRC, Quanzhong An faces a maximum sentence of ten years in prison. The money launderingconspiracy charge against Quanzhong An and Guangyang An carries a maximum sentence of twenty years in prison. The remaining charges, including conspiring to act as agents of the PRC and conspiring to commit interstate and international stalking, carry a maximum sentence of five years in prison.
The government’s case is being handled by the Office’s National Security and Cybercrime Section. Assistant United States Attorneys Alexander A. Solomon, Sara K. Winik, and Antoinette N. Rangel are in charge of the prosecution, with assistance from Trial Attorney
Scott A. Claffee of the National Security Division’s Counterintelligence and Export Control Section. Assistant United States Attorney Brian Morris of the Office’s Asset Recovery Section is handling forfeiture matters.The Defendants:
QUANZHONG AN
Age: 55
Roslyn, New YorkGUANGYANG AN
AGE: 34
Roslyn, New YorkTIAN PENG
AGE: 38
PEOPLE’S REPUBLIC OF CHINACHENGHUA CHEN
Age: Unknown
PEOPLE’S REPUBLIC OF CHINACHUNDE MING
Age: Unknown
PEOPLE’S REPUBLIC OF CHINAXUEXIN HOU
Age: 52
PEOPLE’S REPUBLIC OF CHINAWEIDONG YUAN
Age: 55
PEOPLE’S REPUBLIC OF CHINAE.D.N.Y. Docket No. 22-CR- 460 (KAM)
Nine Multi-National Cocaine Traffickers IndictedRead the Press Release
A ten-count indictment was unsealed today in the United States District Court for the Eastern District of New York charging defendants Carlos Ernesto Angucho Guerrero, Eduard Mauricio Rendon Agudelo, Clemente Riascos Coral, Luis Fernando Sánchez Isaza, Alejandro Alberto Estupiñan Alzate, Belcy Gomez Murcia, Diego Fernando Ceron Munoz, Jhon Armando Panta Gutierrez, and Carlos Adolfo Meza Sanchez, with an international cocaine-distribution conspiracy that resulted in the attempted distribution of thousands of kilograms of cocaine destined for the United States.
Estupiñan Alzate was extradited to the Eastern District of New York from Colombia today. The defendant was arraigned this morning before United States Magistrate Judge Ramon Reyes, Jr., and ordered detained pending trial.
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; Michael Alfonso, Acting Special Agent-in-Charge, Homeland Security Investigations (HSI), New York; Keechant L. Sewell, Commissioner, New York City Police Department (NYPD); and Steven A. Nigrelli, First Deputy Superintendent, New York State Police (NYSP), announced the charges.
“As alleged, the defendants’ attempt to traffic thousands of kilograms of cocaine into our communities was stopped by the coordinated cross-border efforts of law enforcement,” stated United States Attorney Peace. “This Office is working tirelessly with our international and domestic law enforcement partners to hold these narcotics distributors accountable and dismantle their criminal enterprise.”
Mr. Peace expressed his appreciation to the Direccion Antinarcoticos, Unidad Especializada Contra el Trafico de Cocaina and Sensitive Investigative Unit of the Colombian National Police and the Ecuadorian National Police’s Sensitive Investigations Unit for their assistance.
“This investigation shut down a drug pipeline that shipped multi-ton quantities of cocaine from clandestine laboratories in the jungles of Colombia to the streets of the United States,” said DEA Special Agent-in-Charge Tarentino. “I commend the men and women in the New York Strike Force, U.S. Attorney’s Office Eastern District of New York, DEA Special Operations Division, DEA Bogota Country Office, and the Colombian National Police for their diligent efforts to intercept and identify the organization responsible for trafficking this significant amount of poison.”
“HSI, in collaboration with our partners at the New York Strike Force, leverages every resource across the globe to stem the tide of illegal substances into our communities. It’s a direct result of these multi-lateral relationships that law enforcement successfully disrupted the drug trafficking organization’s capability to profit from threatening our public safety,” said HSI New York Acting Special Agent-in-Charge Alfonso
“Today’s charges demonstrate that the investigative efforts of New York City law enforcement are far-reaching, precisely focused, and patient,” stated NYPD Commissioner Sewell. “As long as individuals – wherever they are based – are involved in illegal narcotics trafficking, the NYPD and our partners will relentlessly work to stop the threat to public safety. I commend and thank all of our local, state, and federal colleagues who took part in this New York Organized Crime Drug Enforcement Task Force investigation for their tireless efforts in building this strong, multinational conspiracy case.”
As alleged in the charging documents, between December 2016 and October 2017, the defendants belonged to an international drug trafficking organization and conspired to coordinate the transportation of thousands of kilograms of cocaine from laboratories in the rural areas of Cauca and Nariño in southwestern Colombia to the Pacific Coast of Colombia and/or Ecuador. The organization regularly operated in Ecuador, using land routes to transport cocaine from laboratories to the Pacific Coast of Ecuador. To distribute these drugs internationally, the criminal enterprise shipped cocaine via sea vessels, including submarines, in the eastern Pacific Ocean and by land in Central America to Mexico, en route to the United States.
Using intelligence from sources including lawfully intercepted calls and communications, this investigation revealed that these sophisticated criminal co-conspirators operated in multiple countries to coordinate the shipment of thousands of kilograms of cocaine ultimately destined for the United States. As a result of the investigation, law enforcement successfully seized multiple-hundred-kilograms of cocaine traced to this criminal organization.
If convicted, Estupiñan Alzate faces a mandatory term of 10 years in prison and up to life in prison.
The charges in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty.
The charges are the result of an ongoing Organized Crime Drug Enforcement Task Forces (OCDETF) investigation led by the United States Attorney’s Office for the Eastern District of New York and the New York Strike Force. The New York OCDETF Strike Force is housed at the DEA’s New York Division and includes agents and officers of the DEA; the New York City Police Department; the New York State Police; Immigration and Customs Enforcement – Homeland Security Investigations; the U. S. Internal Revenue Service Criminal Investigation Division; U.S. Customs and Border Protection; the U.S. Marshals Service; New York National Guard; U.S. Coast Guard; Port Washington Police Department; Suffolk County District Attorney’s Office and New York State Department of Corrections and Community Supervision. 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 government’s case is being handled by the Office’s International Narcotics and Money Laundering Section. Assistant United States Attorneys Margaret Schierberl and Chand Edwards-Balfour are in charge of the prosecution. The Justice Department’s Office of International Affairs and the Criminal Division’s Narcotic and Dangerous Drug Section (NDDS) Judicial Attachés in Bogotá, Colombia provided valuable assistance in the investigation and with securing the arrest and extradition of Estupiñan Alzate.
The Defendant:
DIEGO FERNANDO CERON MUÑOZ (also known as “Galleta”)
Age: 36
ColombiaJHON ARMANDO PANTA GUTIERREZ (also known as “Gafas”)
Age: 48
EcuadorCARLOS ERNESTO ANGUCHO GUERRERO (also known as “Corleone” and “Flaco”)
Age: 40
ColombiaEDUARD MAURICIO RENDON AGUDELO (also known as “Oz”)
Age: 41
ColombiaCLEMENTE RIASCOS CORAL (also known as “Pastuso”)
Age: 55
ColombiaLUIS FERNANDO SÁNCHEZ ISAZA (also known as “Gym” and “Pechuga”)
Age: 55
ColombiaALEJANDRO ALBERTO ESTUPINAN ALZATE (also known as “Porcelana” and “Armitage”)
Age: 43
ColombiaBELCY GOMEZ MURCIA (also known as “La Senora” and “Jesus”)
Age: 57
ColombiaCARLOS ADOLFO MEZA SANCHEZ (also known as “Lechuga” and “Charly”)
Age: Unknown
EcuadorE.D.N.Y. Docket No. 19-367 (MKB)
Son of Murder Victim and Co-Conspirator Convicted of Murder-for-Hire Committed at McDonald's Drive-ThruRead the Press Release
Following six weeks of trial, a federal jury in Brooklyn today convicted Anthony Zottola, Sr. and Himen Ross of murder-for-hire conspiracy and murder-for-hire in the October 4, 2018 killing of 71-year-old Sylvester Zottola as he waited to pick up a cup of coffee at a McDonald’s drive-thru in the Bronx. The jury also found the defendants guilty of causing Sylvester Zottola’s death through the use of a firearm and unlawful use and possession of firearms. They face mandatory life terms when sentenced by United States District Judge Hector Gonzalez. A third defendant, Alfred Lopez, was acquitted on all counts.
Breon Peace, United States Attorney for the Eastern District of New York, Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Keechant L. Sewell, Commissioner, New York City Police Department (NYPD), announced the verdict.
“Over the course of more than a year, the elderly victim, Sylvester Zottola, was stalked, beaten, and stabbed, never knowing who orchestrated the attacks. It was his own son, who was so determined to control the family’s lucrative real estate business that he hired a gang of hit men to murder his father,” stated United States Attorney Peace. “For sentencing his father to a violent death, Anthony Zottola and his co-defendant will spend the rest of their lives in prison where they belong as a result of today’s verdict. I thank our prosecutors, the FBI Special Agents and NYPD detectives for their tremendous investigative work solving this cold-blooded crime and bringing the defendants to justice.”
“Proven by evidence and testimony during trial, Zottola had not one, not two, but multiple chances to rethink his deadly intent to murder his own father. He and the others he recruited chose to continue with their savage plot and succeeded. Now, instead of living off his father's millions, his only payday will be federal prison,” stated FBI Assistant Director-in-Charge Driscoll.
“Today’s convictions underscore the unwavering commitment of the NYPD, and its law enforcement partners, to deliver meaningful consequences for violent crimes – in this case against those who carried out a sustained plot to commit murder,” stated NYPD Commissioner Sewell. “For their effort to build a strong prosecution, I want to thank and commend our NYPD investigators, the U.S. Attorney for the Eastern District, the New York Field Office of the FBI, and everyone who worked to see this case through to a successful outcome.”
Sylvester Zottola controlled a residential real estate portfolio consisting of multi-family rental properties that was valued at tens of millions of dollars at the time of his death. Defendant Anthony Zottola helped manage his father Sylvester Zottola’s real estate business by maintaining the properties, collecting rent, and helping to run A&S Maintenance, a company that was jointly owned by Anthony and his brother Salvatore Zottola. Anthony Zottola plotted to kill his father and his brother so that he could take control of the family business.As proven at trial, Anthony Zottola hired co-conspirator Bushawn Shelton to kill his father and his brother, Salvatore. Shelton recruited others to commit the murders, and together they engaged in a year-long conspiracy to carry out a series of violent attacks against Sylvester and Salvatore Zottola. Salvatore, who testified at trial, endured several violent attacks on his life. On November 26, 2017, Sylvester Zottola was menaced at gunpoint by a masked individual. On December 27, 2017, three men invaded Sylvester Zottola’s residence, struck him on the head with a gun, stabbed him multiple times, and slashed his throat. Zottola survived the attack. Then on July 11, 2018, a gunman shot Salvatore Zottola in the head, chest, and hand in front of his residence. Zottola survived the shooting.
A tracking device was placed on Sylvester Zottola’s car, allowing Ross to track him to the McDonald’s restaurant on Webster Avenue where Ross fatally shot the victim multiple times. Ross and Shelton exchanged texts immediately after the hit, and then Shelton and Anthony Zottola exchanged texts, in which Anthony was informed that his father had just been murdered. Shelton texted Anthony Zottola: “Can we party today or tomorrow?” Anthony Zottola assured Shelton that he would have Shelton’s payment for carrying out the murder ready soon: “I have the cases of water in a day or so.” A photograph later recovered from one of Shelton’s cellular telephones depicts a cardboard box of bottled water, as well as over $200,000 in banded currency. Shelton pleaded guilty in August 2022 to murder-for-hire conspiracy and murder-for-hire. He is awaiting sentencing.
The government’s case is being prosecuted by the Office’s Organized Crime and Gangs Section. Assistant United States Attorneys Kayla Bensing, Emily J. Dean, Devon Lash, and Andrew Roddin are in charge of the prosecution, with the assistance of paralegal Brittany Wissel.
The Defendants:
HIMEN ROSS (also known as “Ace” and “A Boggie”)
Age: 36
Bronx, New YorkANTHONY ZOTTOLA, SR.
Age: 44
Larchmont, New YorkDefendants Who Previously Pleaded Guilty:
HERMAN BLANCO (also known as “Taliban” and “L”)
Age: 37
Bronx, New YorkARTHUR CODNER (also known as “Feddi,” “Feddi Bossgod,” and “Scary”)
Age: 34
New Hampton, New YorkJASON CUMMINGS (also known as “The Hat” and “Stacks”)
Age: 34
Brooklyn, New YorkBUSHAWN SHELTON (also known as “Shelz”)
Age: 38
Brooklyn, New YorkJULIAN SNIPE (also known as “Biz” and “Bizzzy”)
Age: 36
Bronx, New YorkE.D.N.Y. Docket No. 18-CR-609 (S-3)(HG)
Former Manager of Long Island Catering Hall Sentenced to 72 Months for Forced LaborRead the Press Release
Earlier today, in federal court in Central Islip, Roberto Villanueva was sentenced by United States District Judge Joanna Seybert to 72 months in prison for his role in the forced labor conspiracy that took place at the Thatched Cottage in Centerport, New York. The defendant pleaded guilty to forced labor and forced labor conspiracy on February 5, 2020 and has been incarcerated since his arrest on December 10, 2017.
Breon Peace, United States Attorney for the Eastern District of New York; Michael Alfonso, Acting Special Agent-in-Charge, Homeland Security Investigations (HSI), New York; Jonathan Mellone, Special Agent-in-Charge, U.S. Department of Labor, Office of Inspector General, New York (DOL-OIG); and Patricia A. Menges, Director, United States Citizenship and Immigration Services, New York Asylum Office (USCIS), announced the sentence.
“Villanueva exploited his victims’ immigration status, promising them the American dream, but instead threatening arrest or deportation if they didn’t work 16 hours a day, often unpaid, sleeping on bug infested mattresses covered in garbage bags, without heat or hot water,” stated United States Attorney Peace. “This sentence highlights our Office’s commitment to bringing abusers to justice.”
“Villanueva knowingly manipulated these workers using bait-and-switch tactics to coerce and control them, forcing them to live in squalid conditions with a constant threat of physical harm if they failed to comply with his ever-escalating demands. Today’s sentencing sends a strong message that human lives are not commodities and these workers deserved dignity and respect. HSI is committed to working together with our partners to fight human trafficking in all its forms, including labor trafficking and exploitation to prevent abuses like this,” said Acting Special Agent in-Charge Alfonso for Homeland Security Investigations in New York.
“Roberto Villanueva abused the H-2B visa program by forcing workers to work long hours in occupations not approved by the U.S. Department of Labor, often for far less than the prevailing wage. Workers that complained were met with threats of physical harm and deportation. The U.S. Department of Labor, Office of Inspector General will continue to work with our law enforcement partners to vigorously pursue those who misuse worker visa programs for their own personal gain,” stated Jonathan Mellone, Special Agent-in-Charge of the U.S. Department of Labor OIG New York Region.
Villanueva formerly worked as a recruiter and manager for the Thatched Cottage. At his plea proceeding, Villanueva admitted that workers were brought from the Philippines to the United States on H-2B visas that expired shortly after their arrival. Once their H-2B visas expired, Villanueva coached workers how to apply for student visas by fraudulently representing that they intended to attend school full-time and had sufficient resources to support themselves during school.
Villanueva admitted that his actions were done in concert and agreement with Ralph Colamussi, the former owner of Thatched Cottage. Villanueva admitted that at times he deposited funds in the workers’ bank accounts to give the appearance of ample resources, and then withdrew the funds once the student visas were approved. When workers objected to performing certain jobs, working consecutive shifts or not being paid promptly, Villanueva threatened to report them to the police or immigration authorities.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorneys Charles P. Kelly and Madeline O’Connor are in charge of the prosecution.
The Defendant:
ROBERTO VILLANUEVA
Age: 65
Huntington, New YorkE.D.N.Y. Docket No. 17-CR-592 (JS)
Five Russian Nationals and Two Oil Traders Charged in Global Sanctions Evasion and Money Laundering SchemeRead the Press Release
A 12-count indictment was unsealed today in federal court in Brooklyn, New York charging five Russian nationals, Yury Orekhov, Artem Uss, Svetlana Kuzurgasheva, also known as “Lana Neumann,” Timofey Telegin and Sergey Tulyakov with various charges related to a global procurement, smuggling and money laundering network. Also charged were Juan Fernando Serrano Ponce, also known as “Juanfe Serrano” and Juan Carlos Soto, who brokered illicit oil deals for Petroleos de Venezuela S.A. (PDVSA), the Venezuelan state-owned oil company, as part of the scheme. On October 17, 2022, Orekhov was arrested in Germany and Uss was arrested in Italy, both at the request of the United States, and will undergo extradition proceedings.
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), Jonathan Carson, Special Agent-in-Charge, U.S. Department of Commerce’s Office of Export Enforcement, New York Field Office, and Andrew Adams, Director, Task Force KleptoCapture announced the charges.
“As alleged, the defendants were criminal enablers for oligarchs, orchestrating a complex scheme to unlawfully obtain U.S. military technology and Venezuelan sanctioned oil through a myriad of transactions involving shell companies and cryptocurrency. Their efforts undermined security, economic stability and rule of law around the world,” stated United States Attorney Peace. “We will continue to investigate, disrupt and prosecute those who fuel Russia’s brutal war in Ukraine, evade sanctions and perpetuate the shadowy economy of transnational money laundering.”
“Today we announce the dismantling of a sophisticated network consisting of at least five Russian nationals and two Venezuelan nationals, each of whom are directly linked to corrupt state-owned enterprises, who knowingly sought to conceal the theft of U.S. military technology and profit off black market oil,” said FBI Assistant Director-in-Charge Driscoll. “This network schemed to procure sophisticated technology in direct support of a floundering Russian Federation military industrial complex. While America's adversaries may seek innovative means to undermine the United States, they will continuously be met with the FBI's resolve through tirelessly uncovering and overcoming all threats to U.S. national security, no matter where they may seek safe haven.
“Complex criminal schemes like this require sustained coordination and collaboration between federal law enforcement and international partners. I’m proud of our team of dedicated law enforcement professionals for their teamwork and dedication to enforcing U.S. export controls,” stated U.S. Department of Commerce Special Agent-in-Charge Carson. “We will continue to enforce the unprecedented export controls implemented in response to Russia’s illegal war against Ukraine and the Office of Export Enforcement intends to pursue these violators wherever they may be worldwide.”
“Webs of shell companies, cryptocurrency and an international network of fraudsters failed to shield Orekhov and his cronies from apprehension by U.S. law enforcement. Stamping out evasion of export controls on military technology is among the Task Force’s highest priorities, and today’s arrests reflects the power of those controls when enforced by a dedicated team of expert agents and devoted foreign partners,” stated Task Force KleptoCapture Director Adams.
As alleged, Orekov has served as the part owner, Chief Executive Officer and Managing Director of Nord-Deutsche Industrieanlagenbau GmbH (NDA GmbH), a privately held industrial equipment and commodity trading company located in Hamburg, Germany. The other owner of NDA GmbH is Artem Uss, the son of the governor of Russia’s Krasnoyarsk Krai region. Kuzurgasheva served as the Chief Executive Officer of one of the scheme’s shell companies and worked for NDA GmbH under Orekhov. Using NDA GmbH as a front company, Orekhov and Kuzurgasheva sourced and purchased sensitive military and dual-use technologies from U.S. manufacturers, including advanced semiconductors and microprocessors used in fighter aircraft, missile systems, smart munitions, radar, satellites and other space-based military applications. These items were shipped to Russian end users, including sanctioned companies controlled by Telegin and Tulyakov, such as Radioavtomatika, Radioexport and Abtronics, that serviced Russia’s defense sector. Some of the same electronic components obtained through the criminal scheme have been found in Russian weapons platforms seized on the battlefield in Ukraine.
In 2019, Orekhov travelled to the United States to source parts used in the Russian-made Sukhoi fighter aircraft and the American-made F-22 Raptor stealth fighter aircraft. Orekhov and Uss also used NDA GmbH as a front to smuggle hundreds of millions of barrels of oil from Venezuela to Russian and Chinese purchasers, including a Russian aluminum company controlled by a sanctioned oligarch and the world’s largest oil refining, gas and petrochemical conglomerate based in Beijing, People’s Republic of China. Serrano Ponce and Soto brokered deals worth millions of dollars between PDVSA and NDA GmbH, which were routed through a complex group of shell companies and bank accounts to disguise the transactions. In one communication with Serrano Ponce, Orekhov openly admitted that he was acting on behalf of a sanctioned Russian oligarch, saying “He [the oligarch] is under sanctions as well. That’s why we [are] acting from this company [NDA GmbH]. As fronting.” The scheme also involved falsified shipping documents and supertankers that deactivated their GPS navigation systems to obscure the Venezuelan origin of their oil.
Payment for NDA GmbH’s illicit activities was often consummated in U.S. dollars routed through U.S. financial institutions and correspondent bank accounts. To facilitate these transactions, Orekhov and his coconspirators used fictitious companies, falsified “Know Your Customer” documentation and bank accounts in high-risk jurisdictions, causing U.S. banks to process tens of millions of dollars in violation of U.S. sanctions and other criminal laws. In one conversation with Soto, Orekhov bragged that “there were no worries...this is the shittiest bank in the Emirates…they pay to everything.” The scheme also utilized bulk cash drops with couriers in Russia and Latin America, as well as cryptocurrency transfers worth millions of dollars, to effectuate these transactions and launder the proceeds.
On March 30, 2022, Orekhov asked the defendant Uss, “Have you decided to leave Russia?” Uss joked in response, “[Y]ou want to be an international fugitive?”
On March 2, 2022, the Attorney General announced the launch of Task Force KleptoCapture, an interagency law enforcement task force dedicated to enforcing the sweeping sanctions, export restrictions, and economic countermeasures that the United States has imposed, along with allies and partners, in response to Russia’s unprovoked military invasion of Ukraine. The task force will leverage all the Department’s tools and authorities against efforts to evade or undermine the economic actions taken by the U.S. government in response to Russian military aggression.
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 is in charge of the prosecution, with valuable assistance from Trial Attorney Scott A. Claffee 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 Justice Department’s Office of International Affairs is providing substantial assistance. The United States thanks German and Italian authorities for their valuable assistance.
The Defendants:
YURY OREKHOV
Age: 42
Dubai, United Arab EmiratesARTEM USS
Age: 40
Moscow, RussiaSVETLANA KUZURGASHEVA
Age: 32
Moscow, RussiaJUAN FERNANDO SERRANO PONCE
AGE: 47
Dubai, United Arab EmiratesJUAN CARLOS SOTO
TIMOFEY TELEGIN
Age: 39
Moscow, RussiaSERGEY TULYAKOV
Age: 52
Moscow, RussiaE.D.N.Y. Docket No. 22-CR-434 (EK)
شركة لافارج تُقرّ بأنها مذنبة بالتآمر لتقديم دعم مادي لمنظمات إرهابية أجنبيةRead the Press Release
بروكلين، نيويورك - في وقت سابق اليوم، في محكمة اتحادية في بروكلين، نيويورك، أقرت شركة لافارج اس آ (Lafarge S.A.- Lafarge)، وهي شركة عالمية لتصنيع مواد البناء مقرها في فرنسا، وشركة لافارج سوريا للإسمنت اس آ (Lafarge Cement Syria, S.A.- LCS)، وهي شركة تابعة لشركة لافارج مقرها في سوريا، أقرت بالذنب أمام هيئة قضائية وجهت لهما تهمة واحدة تتمثل في التآمر لتقديم الدعم المادي والموارد إلى تنظيم الدولة الإسلامية في العراق والشام (داعش) وجبهة النصرة (ANF)، وكلاهما من المنظمات الإرهابية الأجنبية التي حددتها الولايات المتحدة. وفور إقرار المتهمين بالذنب هذا الصباح، حكم قاضي المقاطعة الأمريكية ويليام ف. كونتز الثاني William) (F. Kuntz, II على المتهمين بشروط المراقبة ودفع غرامات مالية، بما في ذلك غرامات جنائية قدرها 90.78 مليون دولار ومصادرة مبلغ قدره 687 مليون دولار، بإجمالي 777.78 مليون دولار.
نشأت التهم عن مخطط المتهمين لدفع مبالغ مالية لداعش وجبهة النصرة مقابل الإذن بتشغيل مصنع إسمنت في سوريا من آب/أغسطس 2013 إلى تشرين الأول/أكتوبر 2014، ممّا مكن شركة لافارج سوريا للإسمنت من الحصول على ما يقرب من 70.30 مليون دولار من العائدات.
وقد أعلن هذا الإقرار بالذنب كل من بريون بيس (Breon Peace)، المدعي العام للولايات المتحدة بالمنطقة الشرقية من نيويورك؛ وليزا أو موناكو (Lisa O. Monaco)، نائبة وزير العدل للولايات المتحدة؛ وماثيو جي. أولسن (Matthew G. Olsen)، مساعد وزير العدل بقسم الأمن القومي بوزارة العدل؛ ومايكل دريسكول (Michael J. Driscoll)، مساعد المدير المسؤول، بمكتب التحقيقات الفيدرالي، مكتب نيويورك الميداني ,ومايكل ألفونسو (Michael Alfonso)، الوكيل الخاص المسؤول بالنيابة، من تحقيقات الأمن الداخلي بنيويورك؛ وكيشانت ل. سيوال (Keechant L. Sewell)، مفوض إدارة شرطة مدينة نيويورك(NYPD) .
صرح المدعي العام للولايات المتحدة السيد بيس قائلاً: "في خضم حرب أهلية، اتخذت شركة لافارج خيارًا لا يمكن تصوره بوضع أموال في أيدي داعش، إحدى أكثر المنظمات الإرهابية وحشية في العالم، حتى تتمكن من مواصلة بيع الإسمنت"، مضيفاً "لم تقم شركة لافارج بهذا الفعل فقط مقابل الحصول على إذن لتشغيل مصنع الإسمنت الخاص بها - وهو عمل سيء بما فيه الكفاية - ولكن أيضًا للاستفادة من علاقتها مع داعش وتحقيق مكاسب اقتصادية، والسعي للحصول على مساعدة داعش لإلحاق الضرر بمنافسي شركة لافارج مقابل خفض مبيعات شركة لافارج. اليوم تعترف شركة لافارج وتتحمل مسؤوليتها عن جريمتها الشنيعة، فلم يسبق قطّ أن اتُّهمت شركة بتقديم الدعم المادي والموارد لمنظمات إرهابية أجنبية، حيث تعكس هذه التهمة والقرار غير المسبوقين الجرائم المذهلة المرتكبة ويبرهنان على أن الشركات التي تتخذ إجراءات تتعارض مع مصالح أمننا القومي في انتهاك للقانون ستخضع للمساءلة".
"وكما يتضح من الإقرار بالذنب اليوم، كانت شركة لافارج مدفوعة بالجشع والمصلحة الذاتية عندما غضت الطرف عن الفظائع التي يرتكبها الإرهاب وتواطأت عن علم لتمويل منظمات إرهابية. ولا تختلف الشركات عن الأفراد - فإذا قمت بتمويل الإرهاب، فسوف تواجه العواقب. وصرح مساعد المدير المسؤول بمكتب التحقيقات الفيدرالي السيد دريسكول قائلاً: "يجب أن تكون النتيجة التي توصلنا إليها اليوم درساً للآخرين، فإذا كان أحدهم على استعداد لتمويل الأشرار، سواء أكان فردًا أو كيانًا أكبر، فإن فرقة العمل المشتركة لمكافحة الإرهاب التابعة لمكتب التحقيقات الفيدرالي وشركاءنا في إنفاذ القانون سيلتزمون بدون هوادة بحماية أمتنا وتقديم المذنبين أمام العدالة".
وقال ألفونسو(Alfonso)، الوكيل الخاص المسؤول بالنيابة، من تحقيقات الأمن الداخلي بنيويورك(HSI) "إن تحقيقات الأمن الداخلي تفتخر بالوقوف إلى جانب شركائنا في فرقة العمل المشتركة لمكافحة الإرهاب في هذه القضية الرائدة حيث نحاسب الشركات الخاصة على تواطؤها في أعمال القتل والدمار التي تسبب فيها داعش وجبهة النصرة؛ الحرب تغذيها الأموال، وقد دفعت شركة لافارج للإرهابيين الأموال، لتصب البنزين على النار، ولحماية أرباحها الخاصة." وأضاف قائلاً "إن العمل المتعمد مع منظمة إرهابية أجنبية مسؤولة عن مقتل عدد لا يحصى من الجنود الأمريكيين من أجل تحقيق مكاسب مالية يعدّ عملاً حقيراً يستحق أقسى العقوبات بموجب القانون. وهذا الإقرار بالذنب الذي صدر اليوم يعدّ تاريخياً إذ يوجه رسالة واضحة إلى الشركات في جميع أنحاء العالم بأننا لن نسمح لها بالسعي لتحقيق الأرباح عن طريق استغلال الأعمال الشريرة التي يرتكبها داعش. لن نترككم تشوهون ذكرى أولئك الذين قتلوا على يد هذه المجموعة الوحشية".
وقال سيوال، مفوض إدارة شرطة نيويورك، "إن الإقرار بالذنب الذي أُعلن اليوم لأمر تاريخيّ حيث يظهر أهمية عملنا المستمر لتعطيل هذا النوع من الإرهاب العابر للحدود والذي يشكل تهديدات كبيرة في الداخل وحول العالم". "مرة أخرى، تمت مواءمة علاقاتنا القوية مع إنفاذ القانون في هذا التحقيق للوصول إلى أقصى حد ممكن لضمان العدالة وحمايتنا من الأذى، أنا فخور للغاية اليوم بالعمل الذي قام به المحققون في شرطة نيويورك، والمدعي العام للولايات المتحدة بالمنطقة الشرقية وفرقة العمل المشتركة لمكافحة الإرهاب التابعة لمكتب التحقيقات الفيدرالي في نيويورك، وتحقيقات الأمن الداخلي، وكل شخص في الداخل والخارج ساهم في متابعة هذه القضية المهمة.
المتهمون تفاوضوا مع الجماعات المسلحة ودفعوا أموالاً للإرهابيين
في الفترة من أيار/مايو 2010 إلى أيلول/سبتمبر 2014، قامت شركة لافارج، من خلال شركة لافارج سوريا للإسمنت، بتشغيل مصنع إسمنت في منطقة الجلابية في شمال سوريا ("مصنع إسمنت الجلابية") الذي بنته شركة لافارج بتكلفة تقارب 680 مليون دولار. وبعد اندلاع الحرب الأهلية السورية في عام 2011، تفاوضت شركة لافارج وشركة لافارج سوريا للإسمنت على اتفاقيات لدفع أموال للفصائل المسلحة في الحرب الأهلية لحماية عمّال شركة لافارج سوريا للإسمنت، وضمان استمرار تشغيل معمل إسمنت الجلابية والحصول على ميزة اقتصادية تتفوق بها على منافسيها في سوق الإسمنت السورية.
وكما أوضح مدراء شركة لافارج في رسائل بريد إلكتروني أرسلت في تلك الفترة، كانت دوافعهم اقتصادية بحتة. اشترى مدراء شركة لافارج سوريا للإسمنت المواد الخام اللازمة لتصنيع الإسمنت من موردين خاضعين لسيطرة داعش، ودفعوا "تبرعات" شهرية للجماعات المسلحة، بما في ذلك داعش وجبهة النصرة، حتى يتمكن العمال والعملاء والموردون من عبور نقاط التفتيش التي تسيطر عليها الجماعات المسلحة على الطرق المحيطة بمصنع إسمنت الجلابية، ووافقوا في النهاية على دفع أموال لداعش بناءً على حجم الإسمنت الذي تبيعه شركة لافارج سوريا للإسمنت لعملائها، والذي شبّهه مدراء شركة لافارج وشركة لافارج سوريا للإسمنت بدفع "الضرائب".
المدعى عليهم تفاوضوا على اتفاقيات تقاسم العائدات مع داعش وسعوا لتحقيق ميزة اقتصادية
قام مدراء شركة لافارج وشركة لافارج سوريا للإسمنت عن قصد بصياغة اتفاقياتهم مع داعش لتعويض المنظمة الإرهابية بناءً على كمية الإسمنت التي تتمكن شركة لافارج سوريا للإسمنت من بيعها – مما يُعدّ بالفعل اتفاقية لتقاسم الإيرادات - لتحفيز المجموعة الإرهابية على التصرف بما يخدم المصلحة الاقتصادية لشركة لافارج سوريا للإسمنت.
وكشرط لإبرام اتفاقية تقاسم الإيرادات، التمس مدراء شركة لافارج وشركة لافارج سوريا للإسمنت مساعدة داعش لفرض تكاليف على المنافسين الذين يبيعون الإسمنت التركي الذي يتم استيراده إلى شمال سوريا، والذي كان يباع غالبًا بسعر أرخص من الإسمنت المنتج في مصنع الجلابية للإسمنت، وأوضح مدراء شركة لافارج سوريا للإسمنت للوسطاء الذين يتفاوضون مع داعش أنه في مقابل دفع شركة لافارج سوريا للإسمنت مبلغ 750 ليرة سورية لكل طن من الإسمنت الذي تبيعه، فإنهم يتوقعون أن يتخذ داعش إجراءات ضد منافسي شركة لافارج سوريا للإسمنت، إما عن طريق وقف بيع الإسمنت التركي المستورد المنافس في المناطق الخاضعة لسيطرة داعش، أو بفرض ضرائب على الإسمنت المنافس مما يسمح لشركة لافارج سوريا للإسمنت برفع أسعارها للإسمنت.
ومن آب/أغسطس 2013 إلى تشرين الأول/أكتوبر 2014، دفعت شركة لافارج وشركة لافارج سوريا للإسمنت إلى داعش وجبهة النصرة، من خلال وسطاء، ما يعادل حوالي 5.92 مليون دولار، وهي مدفوعات في شكل "تبرعات" شهرية ثابتة إلى داعش وجبهة النصرة، ومدفوعات للموردين الخاضعين لسيطرة داعش لشراء المواد الخام ومدفوعات مختلفة على أساس كمية الإسمنت التي تبيعها شركة لافارج سوريا للإسمنت؛ ودفعت شركة لافارج وشركة لافارج سوريا للإسمنت أيضًا ما يعادل 1.11 مليون دولار تقريبًا إلى أطراف ثالثة وسيطة للتفاوض مع داعش وجبهة النصرة ودفع مبالغ مالية لهما نيابةً عن شركة لافارج وشركة لافارج سوريا للإسمنت. بالإضافة إلى ذلك، عندما أخلَت شركة لافارج سوريا للإسمنت في نهاية المطاف معمل إسمنت الجلابية في أيلول/سبتمبر 2014، استحوذت داعش على الإسمنت الذي أنتجته شركة لافارج سوريا للإسمنت لتستمر في المؤامرة، وباعت داعش الإسمنت بأسعار كانت ستدر لداعش ما يقرب من 3.21 مليون دولار. ونتيجة لهذا المخطط، حصلت شركة لافارج سوريا للإسمنت على ما يقرب 70.30 مليون دولار كإجمالي إيرادات المبيعات من آب/أغسطس 2013 حتى 2014. وبلغت المكاسب التي حققها جميع المشاركين في المؤامرة، بما فيهم شركة لافارج سوريا للإسمنت والوسطاء والجماعات الإرهابية، حوالي 80.54 مليون دولار.
المدعى عليهم أخفوا مدفوعاتهم وزوّروا السجلات وغيّروا تواريخ العقود
كما أخفى مدراء شركة لافارج وشركة لافارج سوريا للإسمنت بنشاط مخططهم لتقديم الدعم المادي لداعش وجبهة النصرة. على سبيل المثال:
- طلب مدراء شركة لافارج وشركة لافارج سوريا للإسمنت من الوسطاء إنشاء كيانات تجارية بأسماء غير مرتبطة بشكل واضح بالوسطاء وقاموا بإنشاء فواتير بأوصاف مزيفة للخدمات المقدمة للوسيط لتقديمها إلى شركة لافارج سوريا للإسمنت؛
- قام مدراء شركة لافارج سوريا للإسمنت بصياغة مدفوعات تقاسم الإيرادات التي يقدمونها لداعش بحيث يدفع عملاء شركة لافارج سوريا للإسمنت إلى داعش، في حين أن شركة لافارج سوريا للإسمنت تعوض العملاء عن طريق خصم الأسعار التي تفرضها عليهم. وللتأكد من أن عملاء شركة لافارج سوريا للإسمنت لا يدفعون لداعش أقل من اللازم، وافقت شركة لافارج سوريا للإسمنت على تقديم تقارير مبيعات دورية لداعش، والتي يمكن لداعش استخدامها للتحقق من أن عملاء شركة لافارج سوريا للإسمنت يدفعون المبالغ المستحقة بموجب شروط اتفاقية شركة لافارج سوريا للإسمنت مع داعش؛
- لإخفاء هذه الترتيبات بشكل أكبر، حاول مدراء شركة لافارج وشركة لافارج سوريا للإسمنت مطالبة داعش بعدم إدراج اسم "لافارج" في الوثائق التي تكرّس الاتفاقيات الخاصة بهم وتنفيذها؛
- استخدم العديد من مدراء شركة لافارج وشركة لافارج سوريا للإسمنت المشاركين في المخطط عناوينهم للبريد الإلكتروني الشخصية بدلاً من عناوين البريد الإلكتروني للشركة، لتنفيذ المؤامرة؛
- في أكتوبر 2014، طلب مدراء شركة لافارج وشركة لافارج سوريا للإسمنت من الوسيط توقيع اتفاقية تُنهي اتفاقيته لتقديم الخدمات إلى لافارج سوريا للإسمنت كشرط لدفع المال لوسيط للتفاوض مع داعش والجماعات المسلحة الأخرى. وبشكل حاسم، قام مدراء شركة لافارج وشركة لافارج سوريا للإسمنت بتغيير تاريخ اتفاقية الإنهاء إلى 18 آب/أغسطس 2014، وهو تاريخ بعد فترة وجيزة من إصدار مجلس الأمن التابع للأمم المتحدة قرارًا يدعو الدول الأعضاء إلى حظر التعامل مع داعش وجبهة النصرة، للإيحاء زورًا بأن الوسيط لم يكن يتفاوض مع داعش نيابة عن شركة لافارج سوريا للإسمنت بعد قرار الأمم المتحدة.
وتم الاستحواذ على شركة لافارج من قبل منافس ("الشركة الوريثة") في صفقة أغلقت في 10 تموز/يوليو 2015. ولم يكشف مدراء لافارج للشركة الوريثة عن مدفوعات شركة لافارج سوريا للإسمنت إلى داعش وجبهة النصرة خلال اجتماعات العناية الواجبة قبل الاستحواذ، كما لم تقم الشركة الوريثة بإجراء العناية الواجبة قبل أو بعد الاستحواذ للتحقق من عمليات شركة لافارج سوريا للإسمنت في سوريا، والتي كانت قد انتهت بحلول وقت إغلاق الصفقة. وبالإضافة إلى ذلك، لم تُبلغ شركة لافارج وشركة لافارج سوريا للإسمنت ولا الشركة الوريثة عن تلك السلوكيات أو تتعاون بشكل كامل في التحقيق الذي أجراه هذا المكتب.
قام بإجراء التحقيق فريق العمل المشترك لمكافحة الإرهاب التابع لمكتب التحقيقات الفيدرالي بنيويورك. ويقوم قسم الأمن القومي والجرائم الإلكترونية بالمكتب بإدارة قضية الحكومة. وقام بقيادة التحقيق والمقاضاة كل من المدعين العامين المساعدين للولايات المتحدة: ألون ليفشيتز (Allon Lifshitz)، وألكسندر أ. سولومون (Alexander A. Solomon)، وإيان سي ريتشاردسون (Ian C. Richardson)، وجوشوا هافيتز (Joshua Hafetz)، بمساعدة المدعين العامين المساعدين للولايات المتحدة: أرتيميس ليكاكيس (Artemis Lekakis)، و ج. ماثيو هاجانز J. (Matthew Haggans)، ولوران أ. بومان (Lauren A. Bowman)، ومحاميا الادعاء: بريجت بهلنغ Bridget) (Behling، وجنفير ليفي (Jennifer Levy)، من قسم مكافحة الإرهاب في شعبة الأمن الوطني.
وقدم مكتب الشؤون الدولية التابع لوزارة العدل مساعدة بالغة الأهمية في هذه القضية. كما تعرب الوزارة عن تقديرها للتعاون الكبير والمساعدة المعتبرة التي قدمتها السلطات الفرنسية والمغربية واللبنانية.
Lafarge Pleads Guilty to Conspiring to Provide Material Support to Foreign Terrorist OrganizationsRead the Press Release
BROOKLYN, NY – Earlier today, in federal court in Brooklyn, New York, Lafarge S.A. (Lafarge), a global building materials manufacturer headquartered in France, and Lafarge Cement Syria, S.A. (LCS), a Lafarge subsidiary headquartered in Syria, pleaded guilty to a one-count criminal information charging them with conspiring to provide material support and resources to the Islamic State of Iraq and al-Sham (ISIS) and the al-Nusrah Front (ANF), both U.S.-designated foreign terrorist organizations. Immediately following the defendants’ guilty pleas this morning, United States District Judge William F. Kuntz II sentenced the defendants to terms of probation and to pay financial penalties, including criminal fines of $90.78 million and forfeiture of $687 million, totaling $777.78 million.
The charges arose out of the defendants’ scheme to pay ISIS and ANF in exchange for permission to operate a cement plant in Syria from August 2013 to October 2014, which enabled LCS to obtain approximately $70.30 million in revenue.
Breon Peace, United States Attorney for the Eastern District of New York; Lisa O. Monaco, the Deputy Attorney General of the United States; 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); Michael Alfonso, Acting Special Agent-in-Charge, Homeland Security Investigations, New York (HSI); and Keechant L. Sewell, Commissioner, New York City Police Department (NYPD), announced the guilty pleas and sentences.
“In the midst of a civil war, Lafarge made the unthinkable choice to put money into the hands of ISIS, one of the world’s most barbaric terrorist organizations, so that it could continue selling cement,” said United States Attorney Peace. “Lafarge did this not merely in exchange for permission to operate its cement plant – which would have been bad enough – but also to leverage its relationship with ISIS for economic advantage, seeking ISIS’s assistance to hurt Lafarge’s competition in exchange for a cut of Lafarge’s sales. Today, Lafarge has admitted and taken responsibility for its staggering crime. Never before has a corporation been charged with providing material support and resources to foreign terrorist organizations. This unprecedented charge and resolution reflect the extraordinary crimes committed and demonstrates that corporations that take actions in contravention of our national security interests in violation of the law will be held to account.”
“The terrorism crimes to which Lafarge and its subsidiary have pleaded guilty are a vivid reminder of how corporate crime can intersect with national security,” said Deputy Attorney General Monaco. “The defendants partnered with ISIS, one of the most brutal terrorist organizations the world has ever known, to enhance profits and increase market share—all while ISIS engaged in a notorious campaign of violence during the Syrian civil war. This case sends the clear message to all companies, but especially those operating in high-risk environments, to invest in robust compliance programs, pay vigilant attention to national security compliance risks, and conduct careful due diligence in mergers and acquisitions.”
“The defendants routed nearly six million dollars in illicit payments to two of the world’s most notorious terrorist organizations—ISIS and al-Nusrah Front in Syria—at a time those groups were brutalizing innocent civilians in Syria and actively plotting to harm Americans,” said Assistant Attorney General Olsen. “There is simply no justification for a multi-national corporation authorizing payments to designated terrorist organizations.”
“As today’s guilty plea demonstrates, Lafarge was motivated by greed and self-interest when it turned a blind eye to the horrors of terrorism and knowingly conspired to fund terrorist organizations. Corporations are no different from individuals - if you fund terrorism, you will face the consequences. Today's result should serve as an example to others; if you are willing to fund evil, regardless of whether you are an individual or a larger entity, the FBI’s Joint Terrorism Task Force and our law enforcement partners will continue to be unrelenting in our commitment to protect our nation and bring you to justice," said FBI Assistant Director-in-Charge Driscoll.
“Homeland Security Investigations (HSI) is proud to stand beside our partners in the Joint Terrorism Task Force in this groundbreaking case as we hold private companies to account for their complicity in the death and destruction caused by ISIS and ANF. War runs on money, and Lafarge paid terrorists, adding fuel to the fire, to protect their own profits,” said HSI Acting Special Agent-in-Charge Alfonso. “Knowingly working with a foreign terrorist organization that is responsible for the deaths of countless American soldiers for monetary gain is a despicable act that deserves the highest penalties under the law. Today’s historic guilty plea sends a strong message to companies all over the world that we will not let you profit on the evil done by ISIS. We will not let you dishonor the memory of those killed by this barbaric group.”
“Today’s landmark guilty pleas demonstrate the importance of our ongoing work to disrupt the kind of transnational terrorism that poses significant threats at home and around the world,” said NYPD Commissioner Sewell. “Once again, our strong law enforcement relationships were aligned in this investigation to reach as far as was necessary to ensure justice and keep us from harm. I am immensely proud, today, of our NYPD investigators, the U.S. Attorney for the Eastern District, the FBI’s New York Joint Terrorism Task Force, Homeland Security Investigations, and everyone here and abroad who pulled together over time to pursue this important case."
The Defendants Negotiated with Armed Groups and Paid Terrorists
From approximately May 2010 to September 2014, Lafarge, through LCS, operated a cement plant in the Jalabiyeh region of Northern Syria (the “Jalabiyeh Cement Plant”) that Lafarge had constructed at a cost of approximately $680 million. After the start of the Syrian Civil War in 2011, Lafarge and LCS negotiated agreements to pay armed factions in the Civil War to protect LCS employees, to ensure continued operation of the Jalabiyeh Cement Plant, and to obtain economic advantage over their competitors in the Syrian cement market.
As Lafarge executives made clear in contemporaneous emails, their motives were primarily economic. LCS executives purchased raw materials needed to manufacture cement from ISIS-controlled suppliers; paid monthly “donations” to armed groups, including ISIS and ANF, so that employees, customers and suppliers could traverse checkpoints controlled by the armed groups on roads around the Jalabiyeh Cement Plant; and eventually agreed to make payments to ISIS based on the volume of cement that LCS sold to its customers, which Lafarge and LCS executives likened to paying “taxes.”
The Defendants Negotiated Revenue-Sharing Agreements with ISIS and Sought Economic Advantage
Lafarge and LCS executives intentionally structured their agreements with ISIS to compensate the terrorist organization based on the amount of cement that LCS was able to sell – effectively, a revenue-sharing agreement – to incentivize the terrorist group to act in LCS’s economic interest. A senior Lafarge executive, who supervised LCS’s executives and reported directly to Lafarge’s Chief Executive Officer, articulated this purpose in instructions he sent to LCS executives about the negotiations with ISIS in July 2014: “We have to maintain the principle that we are ready to share the ‘cake,’ if there is a ‘cake.’ To me, the ‘cake’ is anything that is a ‘profit’, after the amortization and before financial expenses.”
As a condition of entering into this revenue-sharing agreement, Lafarge and LCS executives sought ISIS’s assistance to impose costs on competitors selling Turkish cement imported into northern Syria, which was often sold more cheaply than cement produced at the Jalabiyeh Cement Plant. LCS executives made clear to the intermediaries negotiating with ISIS that, in exchange for LCS paying ISIS 750 Syrian Pounds per each ton of cement that it sold, they expected ISIS to take action against LCS’s competitors, either by stopping the sale of competing imported Turkish cement in the areas under ISIS’s control, or by imposing taxes on competing cement that would allow LCS to raise the prices at which it sold cement.
From August 2013 through October 2014, Lafarge and LCS paid ISIS and ANF, through intermediaries, the equivalent of approximately $5.92 million, consisting of fixed monthly “donation” payments to ISIS and ANF, payments to ISIS-controlled suppliers to purchase raw materials and variable payments based on the amount of cement LCS sold. Lafarge and LCS also paid the equivalent of approximately $1.11 million to the third-party intermediaries for negotiating with and making payments to ISIS and ANF on Lafarge’s and LCS’s behalf. In addition, when LCS eventually evacuated the Jalabiyeh Cement Plant in September 2014, ISIS took possession of cement that LCS had produced in furtherance of the conspiracy, and ISIS sold the cement at prices that would have yielded ISIS approximately $3.21 million. As a result of the scheme, LCS obtained approximately $70.30 million in total sales revenue from August 2013 through 2014. The gains to all participants in the conspiracy, including LCS, the intermediaries and the terrorist groups, totaled approximately $80.54 million.
The Defendants Concealed Their Payments, Falsified Records and Backdated Contracts
Lafarge and LCS executives also actively concealed their scheme to provide material support to ISIS and ANF. For example:
- Lafarge and LCS executives required intermediaries to create business entities with names not obviously linked to the intermediaries and created invoices with false descriptions of services rendered for an intermediary to submit to LCS.
- LCS executives structured the revenue-sharing payments to ISIS so that LCS’s customers would pay ISIS, while LCS reimbursed the customers by discounting the prices it charged them. To ensure that LCS’s customers did not underpay ISIS, LCS agreed to provide ISIS with periodic sales reports, which ISIS could use to verify that LCS’s customers were paying the amounts owed under the terms of LCS’s agreement with ISIS.
- To further conceal the arrangements, Lafarge and LCS executives attempted to require ISIS not to include the name “Lafarge” on the documents memorializing and implementing their agreements.
- Many of the Lafarge and LCS executives involved in the scheme used personal email addresses, rather than their corporate email addresses, to carry out the conspiracy.
- In October 2014, as a condition of paying an intermediary for having negotiated with ISIS and other armed groups, Lafarge and LCS executives required the intermediary to sign an agreement terminating his agreement to provide services to LCS. Critically, the Lafarge and LCS executives backdated the termination agreement to August 18, 2014, a date shortly after the United Nations Security Council had issued a resolution calling on member states to prohibit doing business with ISIS and ANF, to falsely suggest that the intermediary was not negotiating with ISIS on behalf of LCS after the U.N. resolution.
Lafarge was eventually acquired by a competitor (the “Successor Company”) in a transaction that closed on July 10, 2015. Lafarge executives did not disclose LCS’s payments to ISIS and ANF to the Successor Company during pre-acquisition diligence meetings, and the Successor Company conducted neither pre- nor post-acquisition due diligence of LCS’s operations in Syria, which had terminated by the time the transaction closed. Lafarge, LCS, and the Successor Company also did not self-report the conduct or fully cooperate in this Office’s investigation.
The investigation was conducted by the FBI’s New York Joint Terrorism Task Force. The government’s case is being handled by the Office’s National Security and Cybercrime Section. Assistant United States Attorneys Allon Lifshitz, Alexander A. Solomon, Ian C. Richardson, and Joshua Hafetz led the investigation and prosecution, with assistance provided by Assistant United States Attorneys Artemis Lekakis, J. Matthew Haggans, and Lauren A. Bowman, and Trial Attorneys Bridget Behling and Jennifer Levy of the National Security Division’s Counterterrorism Section.
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 French, Moroccan, and Lebanese authorities.
The Defendants:
Lafarge S.A.
Paris, FranceLafarge Cement Syria S.A.
Damascus, SyriaE.D.N.Y. Docket No. 22-CR-444 (WFK)
Lafarge Pleads Guilty to Conspiring to Provide Material Support to Foreign Terrorist OrganizationsRead the Press Release
A global building materials manufacturer and its subsidiary pleaded guilty today to a one-count criminal information charging them with conspiring to provide material support and resources in Northern Syria from 2013 to 2014 to the Islamic State of Iraq and al-Sham (ISIS) and the al-Nusrah Front (ANF), both U.S.-designated foreign terrorist organizations. Immediately following the defendants’ guilty pleas this morning, U.S. District Judge William F. Kuntz II sentenced the defendants to terms of probation and to pay financial penalties, including criminal fines and forfeiture, totaling $777.78 million.
According to court documents, Lafarge S.A., headquartered in Paris, France, and Lafarge Cement Syria (LCS) S.A., headquartered in Damascus, Syria, schemed to pay ISIS and ANF in exchange for permission to operate a cement plant in Syria from 2013 to 2014, which enabled LCS to obtain approximately $70.3 million in revenue.
“The terrorism crimes to which Lafarge and its subsidiary have pleaded guilty are a vivid reminder of how corporate crime can intersect with national security,” said Deputy Attorney General Lisa O. Monaco. “The defendants partnered with ISIS, one of the most brutal terrorist organizations the world has ever known, to enhance profits and increase market share — all while ISIS engaged in a notorious campaign of violence during the Syrian civil war. This case sends the clear message to all companies, but especially those operating in high-risk environments, to invest in robust compliance programs, pay vigilant attention to national security compliance risks, and conduct careful due diligence in mergers and acquisitions.”
“The defendants routed nearly six million dollars in illicit payments to two of the world’s most notorious terrorist organizations – ISIS and al-Nusrah Front in Syria – at a time those groups were brutalizing innocent civilians in Syria and actively plotting to harm Americans,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “There is simply no justification for a multi-national corporation authorizing payments to designated terrorist organizations.”
From approximately May 2010 to September 2014, Lafarge, through LCS, operated a cement plant in the Jalabiyeh region of Northern Syria (the Jalabiyeh Cement Plant) that Lafarge had constructed at a cost of approximately $680 million. After the start of the Syrian Civil War in 2011, Lafarge and LCS negotiated agreements to pay armed factions in the Civil War to protect LCS employees, to ensure continued operation of the Jalabiyeh Cement Plant, and to obtain economic advantage over their competitors in the Syrian cement market.
As Lafarge executives made clear in contemporaneous emails, their motives were primarily economic. LCS executives purchased raw materials needed to manufacture cement from ISIS-controlled suppliers; paid monthly “donations” to armed groups, including ISIS and ANF, so that employees, customers and suppliers could traverse checkpoints controlled by the armed groups on roads around the Jalabiyeh Cement Plant; and eventually agreed to make payments to ISIS based on the volume of cement that LCS sold to its customers, which Lafarge and LCS executives likened to paying “taxes.”
Lafarge and LCS executives intentionally structured their agreements with ISIS to compensate the terrorist organization based on the amount of cement that LCS was able to sell – effectively, a revenue-sharing agreement – to incentivize the terrorist group to act in LCS’s economic interest.
As a condition of entering into this revenue-sharing agreement, Lafarge and LCS executives sought ISIS’s assistance to impose costs on competitors selling Turkish cement imported into northern Syria, which was often sold more cheaply than cement produced at the Jalabiyeh Cement Plant. LCS executives made clear to the intermediaries negotiating with ISIS that, in exchange for LCS paying ISIS 750 Syrian Pounds per each ton of cement that it sold, they expected ISIS to take action against its competitors, either by stopping the sale of competing imported Turkish cement in the areas under ISIS’s control, or by imposing taxes on competing cement that would allow LCS to raise the prices at which it sold cement.
“In the midst of a civil war, Lafarge made the unthinkable choice to put money into the hands of ISIS, one of the world’s most barbaric terrorist organizations, so that it could continue selling cement,” said U.S. Attorney Breon Peace for the Eastern District of New York. “Lafarge did this not merely in exchange for permission to operate its cement plant – which would have been bad enough – but also to leverage its relationship with ISIS for economic advantage, seeking ISIS’s assistance to hurt Lafarge’s competition in exchange for a cut of Lafarge’s sales. Today, Lafarge has admitted and taken responsibility for its staggering crime. Never before has a corporation been charged with providing material support and resources to foreign terrorist organizations. This unprecedented charge and resolution reflect the extraordinary crimes committed and demonstrates that corporations that take actions in contravention of our national security interests in violation of the law will be held to account.”
“This guilty plea is a result of extraordinary collaboration among the FBI, the Department of Justice, and our international partners,” said FBI Deputy Director Paul Abbate. “The result demonstrates to anyone who would seek to contribute to ISIS’s terrorist activities, that the FBI will relentlessly pursue, and hold them accountable, regardless of where, or how, they attempt to hide.”
From August 2013 through October 2014, Lafarge and LCS paid ISIS and ANF, through intermediaries, the equivalent of approximately $5.92 million, consisting of fixed monthly “donation” payments to ISIS and ANF, payments to ISIS-controlled suppliers to purchase raw materials, and variable payments based on the amount of cement LCS sold. Lafarge and LCS also paid the equivalent of approximately $1.11 million to the third-party intermediaries for negotiating with and making payments to ISIS and ANF on Lafarge’s and LCS’s behalf. In addition, when LCS eventually evacuated the Jalabiyeh Cement Plant in September 2014, ISIS took possession of cement that LCS had produced in furtherance of the conspiracy, and ISIS sold the cement at prices that would have yielded ISIS approximately $3.21 million. As a result of the scheme, LCS obtained approximately $70.30 million in total sales revenue from August 2013 through 2014. The gains to all participants in the conspiracy, including LCS, the intermediaries and the terrorist groups, totaled approximately $80.54 million.
Lafarge and LCS executives actively concealed their scheme to provide material support to ISIS and ANF. For example:
- Lafarge and LCS executives required intermediaries to create business entities with names not obviously linked to the intermediaries and created invoices with false descriptions of services rendered for an intermediary to submit to LCS.
- LCS executives structured the revenue-sharing payments to ISIS so that LCS’s customers would pay ISIS the amounts owed under LCS’s agreement with ISIS, while LCS discounted the prices it charged to the customers to reimburse them. To ensure that LCS’s customers did not underpay ISIS, LCS agreed to provide ISIS with periodic sales reports, which ISIS could use to verify that LCS’s customers were paying the amounts owed under the terms of LCS’s agreement with ISIS.
- To further conceal the arrangements, Lafarge and LCS executives attempted to require ISIS not to include the name “Lafarge” on the documents memorializing and implementing their agreements.
- Many of the Lafarge and LCS executives involved in the scheme used personal email addresses, rather than their corporate email addresses, to carry out of the conspiracy.
- In October 2014, as a condition of paying an intermediary for having negotiated with ISIS and other armed groups, Lafarge and LCS executives required the intermediary to sign an agreement terminating his agreement to provide services to LCS. Critically, the Lafarge and LCS executives backdated the termination agreement to Aug. 18, 2014, a date shortly after the United Nations Security Council had issued a resolution calling on member states to prohibit doing business with ISIS and ANF, to falsely suggest that he had not been negotiating with ISIS on behalf of LCS after the U.N. resolution.
Lafarge was eventually acquired by a competitor (the Successor Company) in a transaction that closed on July 10, 2015. Lafarge executives did not disclose LCS’s payments to ISIS and ANF to the Successor Company during pre-acquisition diligence meetings, and the Successor Company conducted neither pre- nor post-acquisition due diligence of LCS’s operations in Syria, which had terminated by the time the transaction closed. Lafarge, LCS and the Successor Company also did not self-report the conduct or fully cooperate in the investigation.
Lafarge and its subsidiary pleaded guilty to conspiring to provide material support to designated foreign terrorist organizations and admitted to negotiating with and paying armed groups and terrorists, negotiating revenue-sharing agreements with ISIS to seek economic advantage, and concealing their payments, falsified records, and backdated contracts.
The FBI’s New York Joint Terrorism Task Force is investigating the case. The Justice Department’s Office of International Affairs provided critical assistance in this case. The Department also appreciates the significant cooperation and assistance provided by the French, Moroccan and Lebanese authorities.
Assistant U.S. Attorneys Allon Lifshitz, Alexander A. Solomon, Ian C. Richardson, and Joshua Hafetz for the U.S. Attorney’s Office’s National Security and Cybercrime Section are prosecuting the case, with valuable assistance provided by Assistant U.S. Attorneys Artemis Lekakis, J. Matthew Haggans, and Lauren A. Bowman and Trial Attorneys Bridget Behling and Jennifer Levy of the National Security Division’s Counterterrorism Section.
Lafarge Plaide Coupable Quant À Sa Conspiration Ayant Permis De Fournir Une Aide Important À Des Organisations Terroristes ÉtrangèresRead the Press Release
BROOKLYN, NY – Plus tôt aujourd’hui, dans la cour fédérale de Brooklyn, New York, Lafarge S.A. (Lafarge), un fabricant mondial de matériaux de construction dont le siège est situé en France, et Lafarge Cement Syria, S.A. (LCS), une filiale de Lafarge dont le siège est situé en Syrie, ont plaidé coupables concernant l’unique chef d’informations criminelles les accusant d’avoir conspiré pour fournir une aide et des ressources importantes à l’État islamique d’Irak et du Shâm (ISIS) et au Front al-Nosra (ANF), tous deux désignés comme des organisations terroristes étrangères par les États-Unis. Immédiatement après les plaidoyers de culpabilité des défendeurs ce matin, le Juge de District des États-Unis William F. Kuntz, II a condamné les défendeurs à une probation et à payer les sanctions financières, comprenant des amendes criminelles à hauteur de 90,78 millions de dollars et une confiscation de 687 millions de dollars, totalisant 777,78 millions de dollars.
Les accusations ont fait suite au plan des défendeurs de payer l’ISIS et l’ANF en échange de la permission d’exploiter une usine de ciment en Syrie d’août 2013 à octobre 2014, ayant permis à LCS d’obtenir environ 70,30 millions de dollars de recettes.
Breon Peace, Procureur des États-Unis pour le District Est de New York ; Lisa O. Monaco, Procureure générale adjointe des États-Unis ; Matthew G. Olsen, Procureur général adjoint de la Division de Sécurité Nationale du Département de la Justice des États-Unis ; et Michael J. Driscoll, directeur en charge adjoint au Bureau de terrain de New York du Federal Bureau of Investigation (FBI), Michael Alfonso, agent en charge spécial par intérim, Homeland Security Investigations, New York (HSI) ; et Keechant L. Sewell, Commissaire, New York City Police Department (NYPD) ont annoncé les plaidoyers de culpabilité.
« En pleine guerre civile, Lafarge a fait le choix impensable de mettre de l’argent entre les mains de l’ISIS, l’une des organisations terroristes les plus barbares de la planète, afin de pouvoir continuer à vendre du ciment », a déclaré Me Peace, Procureur des États-Unis. « Lafarge n’a pas fait cela simplement en échange de la permission d’exploiter son usine de ciment, ce qui aurait déjà été suffisamment préjudiciable, elle l’a aussi fait pour tirer parti de sa relation avec l’ISIS à des fins économiques, demandant l’aide de cette organisation pour porter un coup à sa concurrence en échange d’une part de ses ventes. Aujourd’hui, Lafarge a admis et assumé la responsabilité de son crime ahurissant. Jamais auparavant une entreprise n’avait été accusée de fournir une aide et des ressources importantes à des organisations terroristes étrangères. Cette accusation et cette résolution sans précédent reflètent les crimes extraordinaires commis et démontrent que les entreprises qui agissent en infraction de nos intérêts de sécurité nationale et violent ainsi la loi devront rendre des comptes. »
« Comme le démontre le plaidoyer de culpabilité d’aujourd’hui, Lafarge a été motivée par l’avidité et son intérêt personnel lorsqu’elle a fermé les yeux sur les horreurs du terrorisme et a sciemment conspiré pour financer ces organisations terroristes. Les entreprises ne sont pas différentes des individus ; si vous financez le terrorisme, vous ferez face aux conséquences. Le résultat d’aujourd’hui devrait servir d’exemple aux autres ; si vous souhaitez financer le mal, peu importe que vous soyez un individu ou une entité plus vaste, la Joint Terrorism Task Force (Équipe conjointe d’intervention contre le terrorisme) du FBI et nos partenaires chargés de l’application de la loi continueront de démontrer un engagement implacable pour protéger notre nation et vous traduire en justice », a déclaré Me Driscoll, directeur en charge adjoint du FBI.
« Homeland Security Investigations (HSI) est fière de se tenir aux côtés de la Joint Terrorism Task Force (Équipe conjointe d’intervention contre le terrorisme) dans cette affaire sans précédent alors que nous demandons des comptes à des sociétés privées pour connaître leur complicité dans la mort et la destruction causées par l’ISIS et l’ANF. La guerre requiert de l’argent, et Lafarge a payé des terroristes, alimentant le feu pour protéger ses propres profits », a déclaré Me Alfonso, agent en charge spécial par intérim de HSI New York. « Travailler sciemment avec une organisation terroriste étrangère responsable de la mort d’innombrables soldats américains à des fins monétaires constitue un acte méprisable qui mérite la plus forte peine en vertu de la loi. Le plaidoyer de culpabilité historique d’aujourd’hui envoie un message fort aux entreprises du monde entier : nous ne vous laisserons pas tirer profit des méfaits commis par l’ISIS. Nous ne vous laisserons pas déshonorer la mémoire des personnes tuées par ce groupe barbare. »
« Les plaidoyers de culpabilité monumentaux d’aujourd’hui démontrent l’importance de notre travail continu pour lutter contre le genre de terrorisme transnational qui représente une menace importante à l’échelle nationale et dans le monde entier », a déclaré M. Sewell, Commissaire du NYPD. « Une fois encore, nos puissantes relations chargées de l’application de la loi ont collaboré dans cette enquête pour aller aussi loin que nécessaire afin d’assurer la justice et de nous protéger du danger. Je suis extrêmement fier, aujourd’hui, de nos enquêteurs du NYPD, du Procureur des États-Unis pour le District Est, de la Joint Terrorism Task Force du FBI à New York, de Homeland Security Investigations, et de tous ceux, ici et à l’étranger, qui se sont entraidés au fil du temps pour suivre cette affaire importante. »
Les Défendeurs ont négocié avec des groupes armés et des terroristes rémunérés
D’environ mai 2010 à septembre 2014, Lafarge, via LCS, a exploité une usine de ciment dans la région de Jalabiyeh en Syrie du Nord (l’« Usine de ciment de Jalabiyeh ») que Lafarge avait construite pour un coût d’environ 680 millions de dollars. Après le début de la guerre civile syrienne en 2011, Lafarge et LCS ont négocié des accords pour payer des factions armées de la guerre civile afin de protéger les employés de LCS, pour assurer un fonctionnement continu de l’Usine de ciment de Jalabiyeh et obtenir un avantage économique par rapport à leurs concurrents sur le marché syrien du ciment.
Comme les cadres de Lafarge l’ont clairement indiqué dans des e-mails récents, leurs motifs étaient principalement économiques. Les cadres de LCS ont acheté les matières premières nécessaires pour fabriquer du ciment auprès de fournisseurs contrôlés par l’ISIS ; versé des « dons » mensuels à des groupes armés, y compris l’ISIS et l’ANF, afin que les employés, clients et fournisseurs puissent traverser les postes de contrôle des groupes armés sur les routes autour de l’Usine de ciment de Jalabiyeh ; et finalement accepté de verser des paiements à l’ISIS sur la base du volume de ciment que LCS vendait à ses clients, que les cadres de Lafarge et LCS ont assimilé au paiement de « taxes ».
Les Défendeurs ont négocié des accords de partage de recettes avec l’ISIS et cherché un avantage économique
Les cadres de Lafarge et LCS ont intentionnellement structuré leurs accords avec l’ISIS pour rémunérer l’organisation terroriste sur la base de la quantité de ciment que LCS avait réussi à vendre – dans les faits, un accord de partage de recettes – pour inciter le groupe terroriste à agir dans l’intérêt économique de LCS.
À titre de condition pour conclure cet accord de partage de recettes, les cadres de Lafarge et LCS ont demandé de l’aide à l’ISIS pour imposer des coûts aux concurrents vendant du ciment turc importé en Syrie du Nord, qui était souvent vendu moins cher que le ciment produit à l’Usine de ciment de Jalabiyeh. Les cadres de LCS ont indiqué clairement aux intermédiaires négociant avec l’ISIS que, en échange du paiement par LCS de 750 livres syriennes à l’ISIS pour chaque tonne de ciment vendu, ils s’attendaient à ce que l’ISIS prenne des mesures à l’encontre des concurrents de LCS, soit en arrêtant la vente de ciment turc importé concurrent dans les zones sous le contrôle de l’ISIS, soit en imposant des taxes sur le ciment concurrent de manière à permettre à LCS d’augmenter les prix auxquels elle vendait le ciment.
D’août 2013 à octobre 2014, Lafarge et LCS ont payé à l’ISIS et l’ANF, via des intermédiaires, l’équivalent d’environ 5,92 millions de dollars, consistant en des versements de « dons » mensuels fixes à l’ISIS et l’ANF, des paiements aux fournisseurs contrôlés par l’ISIS pour acheter des matières premières et des paiements variables basés sur la quantité de ciment vendu par LCS. Lafarge et LCS ont aussi payé l’équivalent d’environ 1,11 million de dollars à des intermédiaires tiers pour négocier avec l’ISIS et l’ANF et effectuent des paiements à ces derniers au nom de Lafarge et LCS. Par ailleurs, lorsque LCS a fini par évacuer l’Usine de ciment de Jalabiyeh en septembre 2014, l’ISIS a pris possession du ciment que LCS avait produit dans l’intérêt de la conspiration et l’a vendu à des prix qui lui auraient rapporté environ 3,21 millions de dollars. En conséquence du plan, LCS a obtenu environ 70,30 millions de dollars en recettes de ventes totales d’août 2013 à 2014. Les gains pour tous les participants à la conspiration, y compris LCS, les intermédiaires et les groupes terroristes, ont totalisé environ 80,54 millions de dollars.
Les Défendeurs ont dissimulé leurs paiements, falsifié leurs registres et antidaté les contrats
Les cadres de Lafarge et LCS ont aussi activement dissimulé leur plan consistant à fournir une aide importante à l’ISIS et à l’ANF. Par exemple :
- Les cadres de Lafarge et LCS ont exigé d’intermédiaires qu’ils créent des entités commerciales avec des noms sans rapport évident avec eux-mêmes et ont créé des factures avec des descriptions fausses des services rendus qu’un intermédiaire devait soumettre à LCS.
- Les cadres de LCS ont structuré les paiements de partage de recettes à l’ISIS afin que les clients de LCS paient l’ISIS, tandis que LCS remboursait les clients en appliquant des ristournes sur les prix pratiqués avec eux. Pour assurer que les clients de LCS ne sous-payent pas l’ISIS, LCS acceptait de fournir à l’ISIS des rapports de ventes périodiques, que l’ISIS pouvait utiliser pour vérifier que les clients de LCS payaient les montants dus en vertu des termes de l’accord de LCS avec l’ISIS.
- Pour dissimuler davantage leurs arrangements, les cadres de Lafarge et LCS ont tenté d’exiger de l’ISIS qu’elle n’inclue pas le nom « Lafarge » sur les documents commémorant et exécutant leurs accords.
- Bon nombre des cadres de Lafarge et LCS impliqués dans le plan utilisaient des adresses e-mail personnelles, plutôt que leurs adresses e-mail d’entreprise, pour mener à bien la conspiration.
- En octobre 2014, en guise de condition pour payer un intermédiaire afin de négocier avec l’ISIS et d’autres groupes armés, les cadres de Lafarge et LCS ont exigé de celui-ci qu’il signe un accord résiliant son acceptation de fournir des services à LCS. Point crucial, les cadres de Lafarge et LCS ont antidaté l’accord de résiliation au 18 août 2014, soit juste après l’émission par le Conseil de sécurité des Nations Unies d’une résolution appelant les États membres à interdire la réalisation d’affaires avec l’ISIS et l’ANF, afin de faussement suggérer que l’intermédiaire ne négociait pas avec l’ISIS au nom de LCS après la résolution de l’ONU.
Lafarge a fini par être acquise par un concurrent (la « Société successeur ») dans une transaction conclue le 10 juillet 2015. Les cadres de Lafarge n’ont pas divulgué les paiements de LCS à l’ISIS et à l’ANF à la Société successeur pendant les réunions de diligence d’acquisition, et la Société successeur n’a mené un processus de diligence raisonnable ni avant l’acquisition, ni après, concernant les opérations de LCS en Syrie, qui s’étaient arrêtées au moment de la conclusion de la transaction. Lafarge, LCS et la Société successeur n’ont pas non plus déclaré d’elles-mêmes leur conduite ou pleinement coopéré dans le cadre de l’enquête du Bureau.
L’enquête a été menée par la Joint Terrorism Task Force du FBI à New York. La position du gouvernement est gérée par la Section Sécurité Nationale et Cybercrime du Bureau. Les Procureurs adjoints des États-Unis Allon Lifshitz, Alexander A. Solomon, Ian C. Richardson et Joshua Hafetz ont mené l’enquête et la procédure, avec l’aide fournie par les Procureurs adjoints des États-Unis Artemis Lekakis, J. Matthew Haggans et Lauren A. Bowman, et les Avocates plaidantes Bridget Behling et Jennifer Levy de la Section Antiterrorisme de la Division de Sécurité Nationale.
L’Office of International Affairs de la Division Criminelle du Département de la Justice a fourni une assistance cruciale dans cette affaire. Le Département apprécie également la coopération et l’aide considérables apportées par les autorités françaises, marocaines et libanaises.
Les Défendeurs :
Lafarge S.A.
Paris, FranceLafarge Cement Syria S.A.
Damas, SyrieDossier de l’E.D.N.Y. n° 22-CR-444 (WFK)
Colombian Drug Kingpin and Paramilitary Leader Sentenced to 35 Years in Prison for Operating a Continuing Criminal Enterprise and Conspiring to Provide Material Support to a Foreign Terrorist OrganizationRead the Press Release
Earlier today, in federal court in Brooklyn, Daniel Rendon Herrera, also known as “Don Mario,” a citizen of Colombia, was sentenced by United States District Judge Dora L. Irizarry to 35 years’ imprisonment for engaging in a continuing criminal enterprise as a leader of the paramilitary, multibillion dollar drug organization known as the “Clan del Golfo” (CDG), and 15 years’ imprisonment for conspiring to provide material support to a designated foreign terrorist organization, the Autodefensas Unidas de Colombia (AUC). The sentences will run concurrently. As part of the sentence, the Court ordered Rendon Herrera to pay $45,750,000 million in forfeiture. The defendant pleaded guilty to the charges in November 2021.
Breon Peace, United States Attorney for the Eastern District of New York; Damian Williams, United States Attorney for the Southern District of New York; Matthew G. Olsen, Assistant Attorney General for the Justice Department’s National Security Division; Frank A. Tarentino III, Special Agent-in-Charge, Drug Enforcement Administration, New York Division (DEA); Michael Alfonso, Acting 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, First Deputy Superintendent, New York State Police (NYSP), announced the sentence.
“Once the most feared narco-terrorist in Colombia, today marks the end of the criminal career of Rendon Herrera, responsible for importing tons of cocaine, fueling violence, perpetuating drug abuse leaving a wake of destruction from Colombia to the United States, and stained with the blood of rival drug traffickers and civilians who were tortured and killed by the Autodefensas Unidas de Colombia,” stated United States Attorney Peace. “Our Office remains committed to cooperating with our international partners to dismantle transnational criminal organizations like the Clan del Golfo.”
“Daniel Rendon Herrera was one of the most prolific drug traffickers to ever operate in Colombia,” stated DEA Special Agent-in-Charge Tarentino. “As leader of the AUC and Clan del Golfo, Don Mario was responsible for not only importing multi-ton quantities of cocaine into the United States, but also for terrorizing the citizens of Colombia for financial gain. Today’s sentencing underscores DEA’s commitment to bringing to justice drug traffickers at the highest levels who cause the most harm throughout our communities.”
“These paramilitary drug cartels may seem to be a world away, but they have a deadly impact on communities here in New York City. Today’s sentencing demonstrates we and our partners remain committed to pursuing the leadership of these organizations and will hold them accountable for the devastation they cause,” stated FBI Assistant Director-in-Charge Driscoll.
“Starting in the late 1990’s, Rendon Herrera was the leader and mastermind behind a Foreign Terrorist Organization and Specially-Designated Global Terrorism Organization. Under his leadership, Clan del Golfo (CDG) was responsible for heinous acts of violence, often leaving death and destruction in its wake to further the organization’s global cocaine trafficking network,” said Homeland Security Investigations (HSI) New York Acting Special Agent in Charge Michael Alfonso. “Today’s sentencing and ordered forfeiture demonstrates the weight of Rendon Herrera’s crimes. HSI will continue to work ceaselessly alongside our partners to protect Americans by dismantling and disrupting transnational criminal organizations and bring their leaders to justice.”
“Today’s sentencing reinforces the NYPD’s tireless work to rid our city of illegal narcotics and ensures meaningful consequences for one of the world’s most notorious narcotics traffickers,” said NYPD Commissioner Sewell. “The drugs and violence linked to this case knew no borders – but neither did the combined efforts of our NYPD officers and law enforcement partners as we collaborated on the local, state, federal, and international levels to achieve justice. For their sustained dedication, I am proud to thank the U.S. Attorney’s Offices for the Eastern and Southern Districts of New York, the U.S. Drug Enforcement Administration, Homeland Security Investigations, the Federal Bureau of Investigation, the New York State Police, and everyone else who contributed to this successful outcome.”
As set forth in the court filings and proceedings, since the late 1990’s, Rendon Herrera was a leader of the designated foreign terrorist organization, the AUC, and founder and leader of the CDG, formerly and also referred to as Los Urabeños and Clan Usuga, effectively the successor organization to the AUC.
The AUC, founded in 1997, was a Colombian paramilitary and drug-trafficking organization, designated in 2001 by the United States Department of State as a Foreign Terrorist Organization and Specially-Designated Global Terrorism Organization. The AUC engaged in armed conflict with the Fuerzas Armadas Revolucionarios de Colombia (FARC), Colombia’s main guerilla group, and sought to remove FARC sympathizers from positions of power and influence in Colombia. To support its political and terrorist objectives, the AUC imposed “taxes” on cocaine trafficked through AUC-controlled areas and engaged in violent attacks including murders and kidnappings. By 2006, many members of the AUC demobilized as part of the Colombian government’s Justice and Peace process – a process under which paramilitary members surrender to the Colombian government and relinquish their criminally-derived assets in exchange for reduced sentences and amnesty from extradition. Rather than submit to the peace process, Rendon Herrera re-mobilized the AUC as the CDG.
The CDG, like the AUC, continued to finance their paramilitary and drug trafficking by imposing a “tax” on multi-ton shipments of cocaine that transited through areas in Colombia controlled by the organization, which shipments – more than 80 tons of cocaine – were ultimately destined for importation into the United States. The CDG also employed “sicarios,” or hitmen, who carried out various acts of violence, including murders, assaults, kidnappings, and assassinations to collect drug debts, maintain discipline, control and expand drug territory and to promote and enhance the prestige, reputation and position of the organization. By 2009, when Rendon Herrera was captured by the Colombian National Police, he commanded 16 “bloques,” or territories, across Colombia and thousands of armed paramilitary fighters. Additionally, since 2009, Rendon Herrera has been designated by the United States Department of the Treasury, Office of Foreign Assets Control, as a Specially Designated Narcotics Trafficker pursuant to the Foreign Narcotics Kingpin Designation Act. Rendon Herrera’s successor as leader of the Clan del Golfo, Dairo Antonio Úsuga David, also known as “Otoniel,” was extradited to the Eastern District of New York in May 2022 to face charges of leading a continuing criminal enterprise and participating in an international cocaine manufacturing and distribution conspiracy, and is awaiting trial.
The government’s case is being prosecuted by the Office’s International Narcotics and Money Laundering Section. Assistant United States Attorneys Jonathan P. Lax, Francisco J. Navarro, and Andrew D. Grubin are in charge of the prosecution and Assistant United States Attorney Claire S. Kedeshian of the Office’s Asset Recovery Section is handling forfeiture matters, with assistance provided by Assistant United States Attorney Alexander Li of the U.S. Attorney’s Office for the Southern District of New York, and Trial Attorney Elisabeth Poteat of the Justice Department’s National Security Division, Counterterrorism Section. The Justice Department’s Office of International Affairs handled the extradition in this matter and the Criminal Division’s Narcotic and Dangerous Drug Section (NDDS) Judicial Attaché Office in Bogotá, Colombia was instrumental in supporting the case.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
The Defendant:
DANIEL RENDON HERRERA (also known as “Don Mario”)
Age: 57
Antioquia, ColombiaE.D.N.Y. Docket Nos. 14-CR-625 (S-3) (DLI) / 20-CR-569 (S-6) (DLI)
S.D.N.Y. Docket Nos. 04-CR-962 (LAP) / 08-CR-659 (SAS)
Long Island Man Sentenced to 25 Years in Prison for Sexual Exploitation of a ChildRead the Press Release
Earlier today, at the federal courthouse in Central Islip, United States District Judge Gary R. Brown sentenced Manuel Geovanny Torres Rivas to 25 years in prison for sexual exploitation of a child. As part of his sentence, Torres Rivas must register as a sex offender upon his release from prison and not have unsupervised contact with minors. The defendant pleaded guilty to the charge in January 2022.
Breon Peace, United States Attorney for the Eastern District of New York, and Michael Alfonso, Acting Special Agent-in-Charge, Homeland Security Investigations, New York (HSI), announced the sentence.
“Today’s sentence removes a dangerous predator and is only possible due to the bravery of two young girls, who came forward to the authorities about the defendant’s disturbing behavior online, which then helped protect the community and end the abuse of another girl,” said U.S. Attorney Peace. “I urge parents and caregivers to encourage their children to tell a trusted adult if anyone asks them to engage in inappropriate behavior. Protecting children and holding those who harm vulnerable victims accountable for their actions will always be priorities of our Office.”
“Torres Rivas, a hands-on offender who sexually abused a child entrusted to his care, utilized multiple social media accounts to contact children online, sending them explicit content and distributing child sexual abuse material,” said Homeland Security Investigations (HSI) New York Acting Special Agent in Charge Michael Alfonso. “Today’s sentence takes a predator off the street and ensures Torres Rivas will no longer be able to victimize the most innocent members of our community. HSI, along with our partners at the Nassau County Police Department Special Victims Unit, is committed to hunting down child sexual predators and will continue to use our authorities to protect children, physically and virtually.”
Torres Rivas targeted multiple minor females on Snapchat, where he engaged them in sexually explicit conversations and sent them unsolicited videos and images of child pornography. For example, in September 2019, Torres Rivas used the Snapchat account “Geovanny_z6134” to contact a 13-year-old resident of Connecticut. Torres Rivas, a stranger to the girl, described his own sexual abuse of a 9-year-old and sent the girl an unsolicited video depicting a child estimated to be between 8 and 10 years old engaged in sexual conduct. Later, in June 2020, Torres Rivas uploaded to Snapchat more than two dozen videos and images of child pornography, some of which contained graphic depictions of child abuse and involved small children believed to be under the age of 5. Additionally, the defendant used the Snapchat account “Geovr19” to contact an 11-year-old resident of Nevada, to whom he made statements concerning his molestation of a 9-year-old girl and sent the child sexually explicit photos of himself.
This information came to light after the 13-year-old girl from Connecticut reported the contact to school officials, who then contacted local law enforcement, and the 11-year-old girl from Nevada reported the conduct to local law enforcement. Snapchat reported to the National Center for Missing and Exploited Children (NCMEC) that approximately 28 videos and images containing child pornography had been uploaded to the platform using the defendant’s Snapchat account. After tracing these Snapchat accounts to the defendant’s Hempstead residence, law enforcement officers searched the premises and recovered evidence that he had videotaped several sexual encounters with a 9-year-old girl who had been entrusted to his care.
This prosecution is part of Project Safe Childhood, a nationwide initiative led by the Department of Justice to combat the epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The government’s case is being prosecuted by the Office’s Long Island Criminal Division. Assistant United States Attorney Anthony Bagnuola is in charge of the prosecution.
The Defendant:
MANUEL GEOVANNY TORRES RIVAS
Age: 27
Hempstead, New YorkE.D.N.Y. Docket No. 20-CR-494 (GRB)
United States Attorney Breon Peace Announces $484,034 in Justice Department Grants to Support Project Safe NeighborhoodsRead the Press Release
BROOKLYN, NY – U.S. Attorney Breon Peace announced today that the Department of Justice has awarded $484,034 to support the Project Safe Neighborhoods Program in the Eastern District of New York. Funding will support community efforts to address the epidemic of gun crime and serious violence in the district. The grant is one of a number of awards being made to state and local agencies across the country. Funds are administered by the Bureau of Justice Assistance, part of the Department’s Office of Justice Programs.
The Eastern District will utilize a sustained reduction in violent crime strategy that unites federal and local law enforcement authorities in strategic and robust partnerships forged to address violent crime and reduce gun and gang violence in high crime areas of Suffolk and Brooklyn, Queens, and Staten Island.
Launched two decades ago as an evidence-based and community-oriented response to serious gun crime, Project Safe Neighborhoods, known as PSN, is a key component of the Department’s Comprehensive Strategy for Reducing Violent Crime, outlined by Deputy Attorney General Monaco in May 2021. The PSN approach is guided by four key principles: fostering trust and legitimacy in our communities; supporting community-based organizations that help prevent violence from occurring in the first place; setting focused and strategic enforcement priorities; and measuring the results of our efforts. The fundamental goal is to reduce violent crime, not simply to increase the number of arrests or prosecutions.
United States Attorney Peace stated: “My Office, in collaboration with our law enforcement partners, is committed to combating violent crime by identifying and prosecuting the most dangerous offenders, removing guns from our neighborhoods, and supporting programs which benefit at-risk youth. The PSN funding supports these efforts by providing strategies and tools that help make our communities safer and stronger.”
“Reducing violence and sustaining those reductions will require strong partnerships between criminal justice agencies and community stakeholders and a shared commitment to the safety and well-being of every community member,” said OJP Deputy Assistant Attorney General Maureen Henneberg. “The investments we are making through Project Safe Neighborhoods will enable every stakeholder to play a part in building safer and healthier communities.”
PSN programs are led by U.S. Attorneys’ Offices in collaboration with local public safety agencies and community organizations. The programs’ emphasis on community engagement, prevention and intervention measures, focused and strategic enforcement, and measurement and accountability has helped achieve overall reductions in violent crime, including gun homicides, in neighborhoods where PSN strategies have been implemented.
“Over its two-decade history, Project Safe Neighborhoods has evolved to meet the complex challenges of community violence by enlisting the insights and expertise of local partners and by relying on the latest evidence,” said BJA Director Karhlton F. Moore. “We are proud to support our U.S. Attorneys and their allies in their critical work to curb violent crime and build the mutual trust necessary to ensure lasting success.”
The awards announced above are being made as part of the regular end-of-fiscal year cycle. More information about awards under PSN and other OJP grants can be found on the OJP Grant Awards Page.
The Office of Justice Programs provides federal leadership, grants, training, technical assistance and other resources to improve the nation’s capacity to prevent and reduce crime, advance racial equity in the administration of justice, assist victims and enhance the rule of law. More information about OJP and its components can be found at www.ojp.gov.
Ronkonkoma Man Indicted for Fentanyl Pill ConspiracyRead the Press Release
An indictment was unsealed today in federal court in Central Islip charging Fernando Cooper, also known as “Pablo,” with conspiring to distribute and possess with intent to distribute in Suffolk County more than 40 grams of fentanyl, which was contained in counterfeit opioid pills. Cooper, who was already in custody on state fentanyl charges, is scheduled to be arraigned this afternoon before United States Magistrate Judge Arlene R. Lindsay.
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), Rodney K. Harrison, Commissioner, Suffolk County Police Department (SCPD), and Raymond A. Tierney, Suffolk County District Attorney, announced the indictment and charges.
“As alleged, Cooper manipulatively sold and marketed counterfeit opioid pills laced with fentanyl, a dangerous narcotic that is responsible for many deaths in Suffolk County,” stated United States Attorney Peace. “Opioid addiction and fatal drug overdoses remain a significant threat to our communities and this Office is working closely with our law enforcement partners to protect the public by prosecuting fentanyl traffickers who callously conceal that deadly drug in counterfeit pills that could easily kill unsuspecting users.”
“Drug dealers are pushing products with no care for the dangerous substances in them, placing financial gain over human life,” stated FBI Assistant Director-in-Charge Driscoll. “We allege Cooper sold pills he knew were laced with fentanyl, which is responsible for the spike in overdose deaths here and across the nation. These dealers will be held accountable for the carnage they are leaving behind.”“The illicit sale and distribution of fentanyl has taken countless lives across our region and the unsealing of this indictment should strike fear into the heart of anyone who considers buying opioids in any form on the black market,” stated SCPD Commissioner Harrison. “I am proud of the men and women of the Suffolk County Police Department and our partner agencies for their tireless work in this case. We will continue to take aggressive action to hold dangerous drug dealers, like this individual who was peddling counterfeit opioid pills, accountable as we work to curb this ongoing scourge in our communities.”
“This defendant allegedly sold deadly counterfeit opioid pills to unsuspecting users,” said Suffolk County District Attorney Tierney. “Thanks to our partnership with all of our law enforcement agencies, this individual is no longer peddling this poison to our residents. I want to especially thank U.S. Attorney Peace for spearheading the prosecution of these important cases.”
As alleged in the indictment and court filings, between December 2021 and July 2022, Cooper sold and possessed with intent to sell more than 500 counterfeit opioid pills that contained approximately 56 grams of fentanyl, but that were made to resemble Percocet and 30-milligram oxycodone pills, which are in great demand by opioid addicts. In July 2022, Cooper sold approximately 223 counterfeit opioid pills, containing about 28 grams of oxycodone to another person in Bohemia, New York and, days after that sale Cooper was found in possession of 119 counterfeit opioid pills that contained around 14 grams of fentanyl, which were recovered after he fled from the police following a traffic stop and hid in a Central Islip backyard. Execution of a search warrant on cellphones that were seized from Cooper revealed that he was a member of the Hit Squad street gang and that he worked with other individuals to sell and possess with intent to sell fentanyl contained in counterfeit or “pressed” opioid pills in Suffolk County.
According to the Centers for Disease Control and Prevention (CDC) and the Department of Justice, in 2019, nearly 71,000 people died from drug overdoses, making it a leading cause of injury-related death in the United States. The increase in overdose deaths has been driven in large part by fentanyl – a drug that has been described as 50 to 100 times more potent than morphine. In 2019, over 14,000 people died in the United States from a drug overdose involving heroin. From 2013 to 2019, the synthetic opioid death rate increased by more than 1,000 percent. Of those deaths, over 70% involved a prescription or illicit opioid. Among New York State residents, the number of overdose deaths involving any opioid increased each year between 2010 and 2017, with an overall increase of 200.2 percent from 1,074 in 2010 to 3,224 in 2017, according to the New York State Health Department.
If you or someone you know is suffering from substance abuse please call the Substance Abuse and Mental Health Services Administration (SAMHSA) Helpline at 1-800-662-HELP (4357) or go to Findtreatment.gov.
The charges in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty. If convicted, Cooper faces a mandatory minimum sentence of 5 years’ imprisonment and up to 40 years in prison.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorney Bradley T. King is in charge of the prosecution.
The Defendant:
FERNANDO COOPER (also known as “Pablo”)
Age: 21
Ronkonkoma, New YorkE.D.N.Y. Docket No. 22-CR-466 (JMA)
Eleven Defendants Arrested for Investment Fraud, Money Laundering and Unlicensed Money Transmitting Business SchemesRead the Press Release
An indictment was unsealed today in federal court in Brooklyn charging Jin Hua Zhang, Gregory Armand, Chen Chen, Yanbin Chen, Yanbing Chen, Changgui Huang, Xin Jin, Jiahui Miao, Lingming Zeng, Jin Fu Zhang and Hua Zhou with various offenses, including money laundering conspiracy, wire fraud conspiracy, bank fraud conspiracy, passport fraud conspiracy, aggravated identity theft and conspiring to operate an unlicensed money transmitting business. The defendants were arrested and arraigned today, in federal court in Brooklyn before United States Magistrate Judge Peggy Kuo. One defendant 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 (FBI); and Frank A. Tarentino III, Special Agent-in-Charge, Drug Enforcement Administration, New York Division (DEA), and Keechant L. Sewell, Commissioner, New York City Police Department (NYPD) announced the indictment.
“As alleged, nearly $18 million was swindled from over 200 victims throughout the country and laundered through the defendants’ sophisticated money laundering scheme,” stated United States Attorney Peace. “These 11 arrests demonstrate the seriousness of financial fraud and the commitment of this Office and our law enforcement partners to rooting out bad actors and protecting victims.”
“For once the name of a scam - pig butchering - reflects the grotesque nature of the harm it causes victims. We allege these fraudsters bled dry each of their victims and then used the money to set up fake cryptocurrency accounts. We know there are many more victims of these types of scams, and we urge those people to report it to the FBI. We will do all we can to bring each and every criminal to justice,” stated FBI Assistant Director-in-Charge Driscoll.
“Drug trafficking is often linked with other criminal activities like money laundering, fraud and conspiracy,” said DEA Special Agent In Charge Frank Tarentino. “DEA’s partnership with the FBI and the U.S. Attorney’s Office for the Eastern District of New York has resulted in shutting down a multi-million dollar investment fraud and money laundering scheme operating in our backyard. I commend the agents, officers, and attorneys for their diligence throughout this investigation.”
“These defendants betrayed the trust of hundreds of people for profit, stealing millions of dollars through their brazenly callous investment scheme,” said NYPD Commissioner Sewell. “The NYPD and our law enforcement partners will continue to aggressively pursue anyone who seeks to defraud and victimize others, holding them fully accountable for their actions. I want to thank and commend the U.S. Attorney for the Eastern District, the New York Field Office of the FBI, the DEA’s New York Division, and our NYPD investigators for their tireless work on this case.”
According to the indictment and a memorandum filed in connection with the defendants’ bail hearings, the defendants engaged in a money laundering conspiracy dating back to May 2021 in which they laundered proceeds from an investment fraud scheme referred to as “Sha Zu Pan” or the “pig butchering” scam. Through this scam, more than 200 victims were contacted through messaging applications and convinced to invest almost $18 million in trading platforms by sending funds to purported money manager bank accounts that were later stolen. The defendants also operated an unlicensed money transmitting business in which they converted approximately $52 million in cash into cashier’s checks on behalf of customers. As payment for their services, the defendants received a fee, which was generally a portion of the fee that the business received. As part of these criminal schemes, the defendants opened bank and cryptocurrency accounts under false names, using forged passports and identification documents of real people.
This case is part 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 FBI. 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.
In July 2022, Mr. Peace was selected as the Chairperson of the White Collar Fraud subcommittee for the Attorney General’s Advisory Committee (AGAC). As the leader of the subcommittee, Mr. Peace will play a key role in making recommendations to the AGAC to facilitate the prevention, investigation and prosecution of various financially motivated, non-violent crimes including mail and wire fraud, bank fraud, health care fraud, tax fraud, securities and commodities fraud, and identity theft.
The 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 Public Integrity section. Assistant United States Attorneys Benjamin Weintraub and Miranda Gonzalez are in charge of the prosecution. Assistant United States Attorney Brian Morris of the Office’s Asset Recovery section is handling forfeiture matters.
The Defendants:
JIN HUA ZHANG
Age: 35
Staten Island, New YorkGREGORY ARMAND
Age: 44
Belleville, New JerseyCHEN CHEN
Age: 33
Queens, New YorkYANBIN CHEN
Age: 24
Queens, New YorkYANBING CHEN
Age: 28
Brooklyn, New YorkCHANGGUI HUANG
Age: 30
Brooklyn, New YorkXIN JIN
Age: 33
Brooklyn, New YorkJIAHUI MIAO
Age: 24
Cliffside, New JerseyLINGMING ZENG
Age: 37
Brooklyn, New YorkJIN FU ZHANG
Age: 39
Staten Island, New YorkHUA ZHOU
Age: 33
Queens, New YorkE.D.N.Y. Docket No. 22-CR-458 (LDH)
Eight Defendants, Including a Brooklyn Medical Doctor, and Three Pharmacists, Charged with Illegally Distributing More Than 1.2 Million Oxycodone PillsRead the Press Release
Earlier today, in federal court in Brooklyn, a 10-count indictment was unsealed charging Dr. Somsri Ratanaprasatporn, her office manager Leticia Smith, Bassam Amin, Omar Elsayed, and Yousef Ennab who are pharmacists, Michael Kent, Anthony Mathis, and Raymond Walker with conspiracy to distribute and possess with intent to distribute oxycodone and related crimes. Smith and Kent are also charged with money laundering in connection with their alleged efforts to hide the proceeds of their illegal oxycodone distribution operation. All eight defendants were arrested this morning and are scheduled to be arraigned this afternoon before United States Magistrate Judge Robert M. Levy.
Breon Peace, United States Attorney for the Eastern District of New York; Frank A. Tarentino, Special Agent-in-Charge, Drug Enforcement Administration, New York Division (DEA); 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); Thomas M. Fattorusso, Special Agent-in-Charge, Internal Revenue Service Criminal Investigations, New York (IRS-CI); Keechant L. Sewell, Commissioner, New York City Police Department (NYPD); Jocelyn E. Strauber, Commissioner, New York City Department of Investigation (DOI); and Joshua Vinciguerra, Director, New York State Department of Health, Bureau of Narcotic Enforcement (BNE), announced the charges.
“Doctors and medical professionals have a professional obligation to do no harm, but, as alleged, the defendants callously supplied more than one million pills to traffickers for distribution, resulting in dangerous opioids flooding the streets of this district,” stated United States Attorney Peace. “Today’s charges demonstrate this Office’s continued commitment to stemming the availability of illegal drugs and holding to account those who contribute to the epic tragedy that is the opioid epidemic.”
“This structured drug trafficking ring’s operations started in a doctor’s office and ended with $24 million worth of diverted oxycodone on the streets. DEA and our law enforcement partners will continue to hold DEA Registrants and other medical professionals to the highest possible standards and also hold them accountable when they knowingly endanger members of the community. Together, we are all proud of this righteous work, and for the difference it makes in our communities. I commend the investigators and the prosecution team for their work on this wide-spread investigation,” stated DEA Special Agent-in-Charge Tarentino.
“As alleged, our health care system that serves vulnerable populations has been undermined by these individuals,” stated HHS-OIG Assistant Special Agent-in-Charge Doherty. “HHS-OIG, together with our law enforcement partners, will continue to vigorously pursue those who steal from government health care programs for personal gain.”
NYPD Commissioner Sewell stated: “Today’s charges prove again that our fight against the illegal drug trade is unremitting. The NYPD, together with all of our local, state, and federal law-enforcement partners, will pursue these criminals wherever they operate – and when the perpetrators are trusted members of the medical community, their crimes are especially egregious. I thank and commend the U.S. Attorney’s Office for the Eastern District of New York, the DEA’s New York Division, the Office of the Inspector General of the U.S. Department of Health and Human Services, the Internal Revenue Services’ Criminal Investigations, the NYS Department of Health’s Bureau of Narcotic Enforcement, the New York City Department of Investigation, and everyone else involved in this case for their exceptional work.”
“As charged, these defendant medical professionals and their co-conspirators supplied more than 1.2 million oxycodone pills to the streets of New York City, promoting the illicit trade of dangerously addictive opioids. DOI will continue to work tirelessly with our federal and law enforcement partners to ensure that pill mills such as this one are exposed and shut down, and that the individuals who run them are held accountable. I thank the United States Attorney’s Office for the Eastern District of New York and all our investigative partners on this investigation,” stated DOI Commissioner Strauber.“With this multi-million-dollar criminal scheme, it's alleged the defendants made their profits off the vulnerabilities and addictions of their customers throughout New York City. Law enforcement partnerships like those seen here today have been and continue to be an integral part of stopping the flow of highly addictive narcotics into our communities,” stated IRS-CI Special Agent-in-Charge Fattorusso.
“Today’s charges show how diverted prescription drugs still fuel the opioid epidemic in New York. The Bureau of Narcotic Enforcement remains resolute in its commitment to work together with our federal and local law enforcement partners to disrupt and dismantle the criminal organizations that abuse the public’s trust in health care practitioners to move these dangerous and addictive pills from pharmacies to our neighborhoods,” stated BNE Director Vinciguerra.
Oxycodone is a highly addictive opioid used to treat severe and chronic pain conditions. Every year, millions of Americans abuse oxycodone, and the misuse of prescription painkillers like oxycodone leads to hundreds of thousands of annual emergency room visits. More than 16,000 Americans died from prescription opioid overdoses in 2020. Oxycodone prescriptions have enormous cash value to drug dealers. For example, one oxycodone 30 mg tablet, which was the dosage prescribed in this case, can be sold by dealers on the street for between $20 and $30 in New York City.
As set forth in the indictment and publicly filed documents, between December 2018 and October 2022, the defendants operated a drug distribution ring out of a medical practice on Linden Boulevard in East New York, Brooklyn. Together, they unlawfully distributed more than 11,000 prescriptions for oxycodone, amounting to more than 1.2 million oxycodone pills, which carry a street value of at least $24 million. Ratanaprasatporn, a pediatrician and general practitioner, and Smith, issued the prescriptions; Amin, Ennab and Elsayed filled the prescriptions at pharmacies in Brooklyn and Staten Island, and Kent, Mathis, and Walker oversaw “crews” of sham patients who received medically unnecessary prescriptions. Together, the defendants made millions of dollars from the scheme. During the execution of a search warrant this morning, members of law enforcement recovered several hundred thousand dollars in U.S. currency from Smith’s residence. Law enforcement also recovered two handguns that Kent was observed tossing from a rear door of his residence.
If convicted of the drug charges, the defendants face up to 20 years’ imprisonment. If convicted of the money laundering charges, Smith and Kent face up to 20 years’ imprisonment for each count.
The charges in the indictment are allegations, and the defendants are presumed innocent unless and until proven guilty.The charges are the result of an ongoing Organized Crime Drug Enforcement Task Forces (OCDETF) investigation led by the United States Attorney’s Office for the Eastern District of New York and the DEA. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking, weapons trafficking, and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply. OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
The government’s case is being prosecuted by Assistant United States Attorneys Laura Zuckerwise, Victor Zapana, and Gilbert Rein. Assistant United States Attorney Claire Kedeshian of the Office’s Asset Recovery Section is handling forfeiture matters.
New Yorkers who need help finding substance-use-disorder treatment resources should contact 1-877-8-HOPENY. The HopeLine provides high quality, responsive information, and referral services via phone and text message to callers throughout New York State experiencing substance abuse issues. HOPELine services are free and confidential.
The Defendants:
LETICIA SMITH
Age: 54
Brooklyn, New YorkBASSAM AMIN
Age: 69
Brooklyn, New YorkOMAR ELSAYED
Age: 28
Hackensack, New JerseyYOUSEF ENNAB
Age: 25
Brooklyn, New YorkMICHAEL KENT
Age: 49
Brooklyn, New YorkANTHONY MATHIS
Age: 55
New Windsor, New YorkDr. SOMSRI RATANAPRASATPORN
Age: 75
Staten Island, New YorkRAYMOND WALKER
Age: 70
Brooklyn, New YorkE.D.N.Y. Docket No. 22-CR464 (DLI)
Queens Man Convicted of Laundering Bitcoin and Operating Unlicensed Money Transmitting BusinessRead the Press Release
Earlier today, a federal jury in Brooklyn convicted Mustafa Goklu, also known as “Mustangy,” of money laundering and operating an unlicensed money transmitting business as part of a scheme to launder the purported Bitcoin proceeds of drug trafficking. The verdict followed a four-day trial before United States District Judge Pamela K. Chen. When sentenced, Goklu faces up to 25 years in prison.
Breon Peace, United States Attorney for the Eastern District of New York, announced the verdict.
“The defendant offered his customers the ability to launder their criminal proceeds, remain anonymous and conceal where their Bitcoin was coming from so they could continue to engage in drug trafficking and other crimes while avoiding law enforcement detection,” stated United States Attorney Peace. “With today’s verdict, Goklu’s illicit business of converting money from one form to another without a required license has been shut down and the defendant has been convicted for his crimes.”
Mr. Peace thanked the U.S. Drug Enforcement Administration, New York Division, for its outstanding investigative work on the case.
As proven at trial, in July 2018, DEA special agents identified an advertisement posted on localbitcoins.com where an individual with the username “Mustangy” offered to purchase up to $99,999 worth of bitcoins (“BTC”), a digital currency also known as cryptocurrency, and convert them into U.S. currency for a fee. Law enforcement agents later identified Goklu as the individual using the username Mustangy. On July 11, 2018, a DEA Special Agent acting in an undercover capacity (the “UC”) began exchanging encrypted text messages with Goklu to arrange in-person exchanges of BTC to U.S. currency. The UC and the defendant subsequently met and engaged in seven transactions or attempted exchanges of BTC to cash over a nine-month period, culminating in Goklu’s arrest in April 2019. The UC indicated to the defendant on multiple occasions that the source of the BTC the defendant was exchanging was narcotics trafficking and that as part of the UC’s business he sold oxycodone, Adderall, and marijuana. The transactions occurred in the defendant’s parked Mercedes-Benz, at a coffee shop in Sunnyside, Queens, and locations in Manhattan. The amounts exchanged at each transaction ranged from approximately $5,000 to $50,000 for a total of $133,000. During each transaction, the UC transferred BTC to Goklu’s cryptocurrency wallet, after which the defendant retained a seven or eight percent commission fee and provided the UC with the remaining amount in cash. The evidence introduced at trial also showed that the defendant was engaged in similar illicit Bitcoin exchanges with multiple other individuals.
In July 2022, Mr. Peace was selected as the Chairperson of the White Collar Fraud subcommittee for the Attorney General’s Advisory Committee (AGAC). As the leader of the subcommittee, Mr. Peace will play a key role in making recommendations to the AGAC to facilitate the prevention, investigation and prosecution of various financially motivated, non-violent crimes including mail and wire fraud, bank fraud, health care fraud, tax fraud, securities and commodities fraud, and identity theft.
The government’s case is being handled by the Office’s International Narcotics and Money Laundering Section. Assistant United States Attorneys Gillian Kassner and Marietou E. Diouf are in charge of the prosecution with the assistance of paralegal specialist Bridget Donovan.
The Defendant:
MUSTAFA GOKLU
Age: 50
Sunnyside, QueensE.D.N.Y. Docket No. 19-CR-386 (PKC)
Justice Department Announces Filing of Statement of Interest in "Ghost Gun" LitigationRead the Press Release
Breon Peace, the United States Attorney for the Eastern District of New York (EDNY), in partnership with Damian Williams, the United States Attorney for the Southern District of New York (SDNY), and Brian M. Boynton, Principal Deputy Assistant Attorney General, filed a Statement of Interest today in The City of New York v. Arm or Ally, LLC, to express the Justice Department’s views on the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF)’s regulations concerning unfinished frame and receiver kits.
In the lawsuit, the City of New York alleges that multiple firearm businesses have sold tens of thousands of illegal, unfinished frames and receivers to New Yorkers. These frames and receivers, which are classified as firearms, were then converted into unserialized, untraceable handguns and assault-style weapons, known as “ghost guns.” Ghost guns contribute to the ongoing plague of gun violence.
The Department of Justice’s Statement of Interest informs the Court that the United States has serious concerns about the proliferation of untraceable firearms easily assembled from firearm parts kits and unfinished frames and receivers. The Statement of Interest makes clear that ATF has long held that the sale of all components necessary to produce a functional firearm are, and always have been, classified as the sale of a firearm under the Gun Control Act of 1968. Additionally, the Statement of Interest informs the Court of ATF’s authority to promulgate a rule updating its definition of “frame or receiver” and other statutory and regulatory terms.
Mr. Peace stated, “Ghost guns are a major contributor to the ongoing plague of gun violence. The United States will continue to employ every means available, including civil tools, to keep ghost guns and other illegal firearms out of the hands of criminals and reduce the risk of gun violence. The United States filed a Statement of Interest in this important litigation to ensure that the Court is informed of the federal government’s views of pertinent firearms statutes and regulations.”
Mr. Williams stated, “This Statement of Interest reflects the Department of Justice’s commitment to work with federal, state, and local law enforcement partners to combat the growing problem of ghost guns. This Office is determined to prevent criminals from accessing untraceable firearms easily assembled from firearms parts kits and unfinished frames and receivers.”
“Ghost guns have for years helped fuel an escalating trend of firearms-related violence,” ATF Special Agent in Charge DeVito said. “The updated federal regulations are an important step in abating that trend in our local communities. Today’s filing sends a message that the United States will do its part, using all available means, to support our local partners in their own efforts to curb the flow of these dangerous weapons to the criminal element and violent offenders.”
For the U.S. Attorney’s Office for the Eastern District of New York, the filing of this Statement of Interest is part of EDNY’s larger Civil Initiative to Reduce Gun Violence. The EDNY’s Civil Initiative to Reduce Gun Violence was created earlier this year in recognition of the President’s directive to take a whole-of-government approach to combat the epidemic of gun violence and ensure public safety, and complements the EDNY’s Criminal Division’s successful efforts to reduce the scourge of gun-related crimes. The EDNY’s Civil Initiative to Reduce Gun Violence aims to collaborate 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. In July 2021, the United States Attorney’s Offices for the Southern and Eastern Districts of New York also joined a cross-jurisdictional strike force to help reduce gun violence by disrupting illegal firearms trafficking in key regions across the country.
This matter, as well as the EDNY’s Civil Initiative to Reduce Gun Violence, are being handled by Assistant U.S. Attorneys Michael Blume, Richard Hayes, Joseph Marutollo, and Bonni Perlin of the Eastern District of New York, with assistance from Paralegal Specialist Jill Merenda. This matter was handled in partnership with Assistant U.S. Attorneys Jeannette Vargas and Lucas Issacharoff of the Southern District of New York; Director Alexander K. Haas, Assistant Director Lesley Farby, Trial Attorneys Daniel Riess, and Martin M. Tomlinson of the Federal Programs Branch; and Director Gustav W. Eyler, Principal Deputy Director Amanda Liskamm, and Trial Attorneys Patrick Runkle and Daniel Crane-Hirsch of the Consumer Protection Branch.
Gambino Crime Family Associate Sentenced to 40 Years in Prison for Murder and Robbery of Brooklyn ManRead the Press Release
Earlier today, in federal court in Brooklyn, Anthony Pandrella, an associate of the Gambino organized crime family, was sentenced by United States Chief District Judge Margo K. Brodie to 40 years’ imprisonment for the murder of 77-year-old Vincent Zito, Hobbs Act robbery and unlawful use of a firearm. Pandrella was convicted of the charges following a one and a half-week trial in June 2022. Restitution will be determined at a later date.
Breon Peace, United States Attorney for the Eastern District of New York, Michael J. Driscoll, Assistant Director-in-Charge, New York Field Office (FBI), and Keechant L. Sewell, Commissioner, New York City Police Department (NYPD), announced the sentence.
“All for greed, the defendant ruthlessly executed his longtime friend after being welcomed into his home,” stated United States Attorney Peace. “Pandrella’s cold-blooded crime has cost him dearly with the loss of his freedom for decades.”
“With today’s sentence, the NYPD and our law enforcement partners reaffirm our commitment to hold every violent criminal in our community accountable,” stated NYPD Commissioner Sewell. “This defendant showed a callous disregard for human life, and his association with organized crime will not shield him from justice. I thank and commend the U.S. Attorney for the Eastern District, the New York Field Office of the FBI, and everyone who worked on this important case.”
The defendant and Zito were friends for more than 30 years. Zito was running an illegal loansharking business and had been warned by Pandrella that he was “hot,” meaning that he was under investigation by law enforcement. Zito had given Pandrella $750,000 from the business to hold for safekeeping, but when he tried to collect the money back from Pandrella, the defendant failed to return it. On the morning of October 26, 2018, Pandrella went to the Sheepshead Bay home of Zito and while there, shot his friend in the back of the head at close range. Pandrella also stole expensive foreign-made wristwatches that the victim was holding as collateral for a customer’s loan. Pandrella was captured on security camera footage entering and leaving Zito’s residence at the time of the murder and robbery. After leaving the victim’s residence, Pandrella went home and additional security video from his neighborhood showed that the defendant changed his shoes and clothing, and removed the driver’s side floor mat of his vehicle so it could be cleaned. Zito’s body was discovered by his 11-year-old grandson when the boy returned home from school. The murder weapon was recovered at the scene and Pandrella’s DNA was found on the trigger and grip of the firearm.
The government’s case is being handled by the Office’s Organized Crime & Gangs Section. Assistant United States Attorneys M. Kristin Mace and Matthew R. Galeotti are in charge of the prosecution with the assistance of Paralegal Specialist Teri Carby.
The Defendant:
ANTHONY PANDRELLA
Age: 63
Brooklyn, New YorkE.D.N.Y. Docket No. 19-CR-122 (MKB)
Defendant Sentenced to 18 Months in Prison for Sabotage of NYPD Vehicle and COVID-19 Related FraudRead the Press Release
Earlier today, in federal court in Brooklyn, Jeremy Trapp was sentenced by United States District Judge William F. Kuntz II to 18 months in prison for cutting a brake line of a New York City Police Department (NYPD) van and 18 months in prison for committing wire fraud in connection with the COVID-19 pandemic-related Economic Injury Disaster Loan program. The sentences will run concurrently. As part of the sentence, the Court ordered Trapp to pay $9,722.88 in restitution to the United States Small Business Administration.
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 sentences.
“Today’s sentence shows that there are consequences for those who seek to harm our law enforcement officers and steal from our public assistance programs,” stated United States Attorney Peace. “In cutting a brake line on an NYPD vehicle, Jeremy Trapp showed a blatant disregard for the lives of police officers and residents of New York City who could have been killed or seriously injured by a runaway vehicle without brakes.”
“Jeremy Trapp’s contempt for the law is first demonstrated by his stealing money meant for people adversely impacted by the COVID-19 pandemic, and is then exceeded by his disdain for those who enforce the law,” stated NYPD Commissioner Sewell. “Cutting the brake lines of an NYPD vehicle would not only threaten the safety of police officers – it would endanger the lives of anyone in that vehicle’s path. Any attempt to rationalize these actions as a protest against the government or law enforcement is the height of hypocrisy. I want to thank the U.S. Attorney for the Eastern District, the New York Field Office of the FBI, and the NYPD’s Intelligence Bureau for their outstanding work on this case.”
As set forth in the court filings and today’s proceeding, on July 17, 2020, Trapp crawled under a marked NYPD van parked near Fourth Avenue and 42nd Street in Sunset Park, Brooklyn, and partially severed a line that is part of the NYPD van’s anti-lock braking system, which is similar in appearance to, and in the same location as, the NYPD vehicle’s main brake line. A malfunctioning anti-lock braking system would adversely impact a driver’s ability to stop and maintain control of the van in an emergency.
Additionally, in June 2020, Trapp submitted a fraudulent Economic Injury Disaster Loan program (EIDL) loan and grant application. EIDL provides qualifying small businesses with low-interest loans. The Coronavirus Aid, Relief and Economic Security (CARES) Act expanded EIDL to provide economic support to help offset the temporary loss of revenue experienced by businesses due to the COVID-19 pandemic.
In the application, Trapp claimed that he was the sole proprietor of a car wash business located at his home address in Brooklyn, a multi-unit residential building. Trapp further represented that he employed ten individuals and that his gross revenue for the 12 months prior to the COVID-19 pandemic was $150,000. Based on Trapp’s false representations, the Small Business Administration approved a $42,500 loan and $10,000 grant to Trapp, and these funds were deposited into Trapp’s bank account.
The government’s case is being handled by the Office’s National Security and Cybercrime Section. Assistant United States Attorneys Francisco J. Navarro and Sara K. Winik are in charge of the prosecution.
The Defendant:
JEREMY TRAPP
Age: 26
Brooklyn, New YorkE.D.N.Y. Docket Nos. 20-CR-308 and 20-CR-454 (WFK)
Former FIFA Official Sentenced to 16 Months in Prison for Accepting Hundreds of Thousands of Dollars in BribesRead the Press Release
Earlier today, in federal court in Brooklyn, Reynaldo Vasquez, the former president of the El Salvadorean soccer federation (“the Federation”) was sentenced by United States District Judge Pamela K. Chen to 16 months’ imprisonment in connection with over $350,000 in bribes that he and other soccer officials from El Salvador received from an American company in exchange for the sale of broadcast rights to the El Salvador soccer team’s World Cup qualifier and friendly matches. Vasquez pleaded guilty to racketeering conspiracy in August 2021. The defendant was indicted in November 2015 and extradited to the United States from El Salvador in 2021. As part of his plea agreement, Vasquez had previously agreed to forfeit $360,000 to the government.
Breon Peace, United States Attorney for the Eastern District of New York, announced the sentence.
“The defendant and his co-conspirators, motivated by greed, disgraced themselves by lining their pockets with hundreds of thousands of dollars in bribes, at the expense of a beautiful sport, El Salvador’s soccer federation, and the community it served,” stated United States Attorney Peace. “Vasquez has now been held to account, like the many other corrupt soccer officials who have been exposed by the government’s investigation.”
Mr. Peace thanked the Federal Bureau of Investigation, New York Field Office (FBI), and the Internal Revenue Service Criminal Investigation, Los Angeles Field Office (IRS-CI), for their exceptional investigative work, and the Department of Justice’s Office of International Affairs for its assistance with extradition of the defendant in this matter.
From approximately 2009 through 2011, Vasquez served as the President of the Federación Salvadoreña de Fútbol. Vasquez and his co-conspirators participated in and corrupted an enterprise comprising soccer organizing bodies and sports marketing companies. As part of his association with that enterprise, Vasquez and others solicited and received bribes and kickbacks in exchange for awarding lucrative media and marketing contracts. In 2012, Vasquez, together with other current and former officials of the federation, received approximately $350,000 in bribes in connection with the sale of media and marketing rights to El Salvador World Cup qualifying matches to be played in advance of the 2018 World Cup. This bribe payment was wired from a sports marketing company’s bank account in the United States. Vasquez ultimately received a portion of his bribe money through a wire transfer sent through the United States. In 2014 and 2015, Vasquez and others agreed to receive tens of thousands of dollars in bribes in connection with the participation of the Salvadorean national team in friendly matches to be played in the United States.
The sentence announced today is part of a long-running investigation into corruption in international soccer led by the U.S. Attorney’s Office for the Eastern District of New York, the FBI New York Field Office, and the IRS-CI Los Angeles Field Office. To date, the prosecution has resulted in 27 individual guilty pleas, 4 corporate guilty pleas, and 2 convictions at trial, among other resolutions. The prosecutors in Brooklyn have received considerable assistance from attorneys in various parts of the Justice Department’s Criminal Division in Washington, D.C., including the Office of International Affairs, the Organized Crime and Gang Section, the Money Laundering and Asset Recovery Section, and the Fraud Section, as well as from INTERPOL Washington, and various foreign governments.
Assistant United States Attorneys Kaitlin T. Farrell, Victor Zapana, Eric Silverberg, and Brian D. Morris are in charge of the prosecution.
The Defendant:
REYNALDO VASQUEZ
Age: 66
El SalvadorE.D.N.Y. Docket No. 15-CR-252 (PKC)
Two Brooklyn Men Charged with Armed Robbery at ChurchRead the Press Release
Earlier today, in federal court in Brooklyn, an indictment was unsealed charging Juwan Anderson and Say-Quan Pollack for their roles in an armed robbery at a church in Brooklyn (the “Church”) on July 24, 2022. The defendants were arrested today and will be arraigned this afternoon before United States Magistrate Judge Ramon E. Reyes, Jr. A third defendant remains at large.
Breon Peace, United States Attorney for the Eastern District of New York, John B. DeVito, Special Agent-in-Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives, New York Division (ATF), and Keechant L. Sewell, Commissioner, New York City Police Department (NYPD), announced the arrests and charges.
“As alleged, the defendants brought guns into a place of worship, stealing from two members of the clergy, and terrifying the congregation in the process,” stated United States Attorney Peace. “I commend the Special Agents and Detectives for their outstanding efforts in identifying the perpetrators who committed a crime that shocks the conscience for its brazenness. This Office will always work with our law enforcement partners to protect our houses of worship, prosecute those who engage in gun violence and and ensure the safety of all members of our community.”
“Armed robbery is an intolerable crime, but to commit such an act during a religious service is incomprehensible,” stated ATF Special Agent-in-Charge DeVito. “The men and woman of ATF stand side by side with all of our partners to identify, investigate and apprehend those that commit such brazen acts of violence within our communities. These arrests are due to the excellent investigative work by ATF/NYPD’s Strategic Pattern Armed Robbery Technical Apprehension (SPARTA) Group. I would like to thank the United States Attorney’s Office for their work in prosecuting this case.”
“The indictment unsealed today affirms the NYPD’s unwavering commitment to working collaboratively, across several law enforcement agencies, to focus on those few individuals charged with wreaking violence in our city,” stated NYPD Commissioner Sewell. “I commend the U.S. Attorney’s Office for the Eastern District of New York, the New York Field Division of the Bureau of Alcohol, Tobacco, and Firearms, and all of our NYPD officers and detectives who have investigated this important case and removed these defendants from our streets."
As alleged in the indictment and court filings, Anderson, Pollack and a co-conspirator—masked and clad all in black—entered the Church brandishing firearms, while parishioners attended Church services in person and via a live-stream. The lead pastor (“Individual 1” in the Indictment) dove to the floor, while his wife (“Individual 2” in the Indictment) shielded their infant daughter who was sitting on her lap. Pollack stood guard at the doorway, pointing a firearm in the direction of the parishioners and the pulpit. The co-conspirator, wielding a gun, approached Individual 2 and pulled jewelry off her person. Pollack then approached Individual 1 as he lay on the floor and made sure that all of his jewelry had been removed by Anderson and the co-conspirator.
The charges in the indictment are allegations, and the defendants are presumed innocent unless and until proven guilty. If convicted, each defendant faces a maximum sentence of life imprisonment.
The government’s case is being handled by the Office’s General Crimes Section. Assistant United States Attorney Rebecca M. Schuman is prosecuting the case.
The Defendants:
JUWAN ANDERSON
Age: 23
Brooklyn, New YorkSAY-QUAN POLLACK (also known as “Say-Quan Pollock”)
Age: 23
Brooklyn, New YorkE.D.N.Y. Docket No. 22-CR-428 (WFK)
Georgia Men Charged with Trafficking Dozens of Handguns into New YorkRead the Press Release
Earlier today, at the federal courthouse in Central Islip, Patrick Polidore was arraigned by United States Magistrate Judge Steven I. Locke on charges that he and co-defendant Dennis Wolfolk conspired to purchase and illegally transport into New York more than two dozen handguns. Wolfolk is in federal custody at the Robert A. Deyton Detention Facility located in Lovejoy, Georgia, and will be removed to the Eastern District of New York for arraignment on the charges at a later date.
Breon Peace, United States Attorney for the Eastern District of New York, John B. Devito, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Patrick J. Ryder, Commissioner, Nassau County Police Department (NCPD), and Anne T. Donnelly, Nassau District Attorney announced the charges.
“As alleged, these defendants illegally trafficked over two dozen guns across state lines, distributing them to street-level buyers in New York where at least 11 were then used in numerous violent crimes, including multiple shootings across Long Island,” stated United States Attorney Peace. “This office and our law enforcement partners will continue to vigorously investigate and prosecute those who exploit state and federal gun laws directly leading to deadly gun violence in our communities.”
Mr. Peace thanked the United States Attorney’s Office for the Northern District of Georgia, the ATF’s Atlanta Field Division, the Nassau County District Attorney’s Office, the Nassau County Police Department, and the Hempstead Police Department for their assistance in the investigation.
“Straw purchasers undermine federal laws and enable violent criminals to obtain firearms that destroy lives and devastate communities,” said ATF Special Agent in Charge DeVito. “This investigation was initiated by the ATF Long Island Firearms Task Force after a 2020 murder in Hempstead, NY. Evidence recovered by ATF led to Polidore. As alleged, further investigation revealed he conspired to illegally traffic approximately 27 firearms from Georgia to Long Island. ATF is on the frontline in the fight against firearms trafficking alongside our partners. We will use every resource to save lives and stop the flow of illegal guns into our communities. Thank you to our law enforcement partners, including: Nassau County Police Department’s Gang Investigation Squad, Nassau County District Attorney and Hempstead Police Department for all their work and effort.”
“The arraignment of defendant Patrick Polidore and continued investigation into defendant Dennis Wolfolk is a clear example how law enforcement working together continues to arrest and prosecute these criminals to ensure the safety of our neighborhoods. The defendants illegally transported dozens of handguns to Long Island and surrounding areas. Some of these weapons were used in the commission of multiple shootings and other violent crimes. We will continue to investigate all who break the law in order to reduce gun violence in all communities. Lastly, I would like to thank all of the investigators who assisted with this investigation for their commitment and dedication to suppressing crime,” stated NCPD Commissioner Ryder.
Nassau District Attorney Donnelly said: “Illegal firearms are flooding into Long Island every day and causing untold destruction. To date, our county law enforcement partners have seized 272 weapons in 2022. As of this date last year, that number was 193. Patrick Polidore and Dennis Wolfolk are part of that problem. These defendants allegedly conspired to purchase firearms in Georgia and trafficked those weapons to Long Island, where at least 11 of them have already been recovered at crime scenes. Stemming the flow of illegal weapons into Long Island requires great partners and I thank U.S. Attorney Breon Peace; the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF); and the Nassau County Police Department for their work in bringing these alleged gun runners to justice.”
As alleged in an 11-count Indictment and detailed at Polidore’s arraignment, between October 2020 and January 2021, Polidore visited numerous federally licensed retailers and acted as the straw purchaser for approximately 27 handguns, many of which were purchased in rapid succession on the same date. For example, as alleged, on November 4, 2020, Polidore purchased six handguns at multiple locations in Georgia; on November 18, 2020, and November 23, 2020, he purchased a total of ten handguns. On federal records that document firearms transactions, Polidore falsely affirmed that he was the actual purchaser of the weapons when, in actuality, he had conspired with Wolfolk, who, as a convicted felon, was legally prohibited from possessing a firearm, to traffic the handguns to New York, where they were distributed to street-level buyers.
At least 11 of the handguns Wolfolk transported to New York have been recovered by law enforcement at crime scenes in and around Long Island. For example, shortly after Polidore’s November 4, 2020 purchase of six handguns from different retailers in Georgia, Wolfolk traveled to Long Island with the weapons. Within months, three of the firearms purchased by Polidore were recovered by police on Long Island:
- On January 13, 2021, during a traffic stop in Hempstead, New York—where Wolfolk had previously resided—three individuals, including a juvenile, were found in possession of a 9mm Ruger handgun purchased by Polidore. This gun was linked to an earlier shooting in Uniondale on November 25, 2020, in which unknown individuals fired shots at a vehicle. The shell casings from that shooting incident matched the firearm purchased by Polidore just two days earlier.
- On May 28, 2021, during a traffic stop in Patchogue, New York, police arrested an individual in possession of a .22-caliber Walther handgun purchased by Polidore.
- On October 3, 2021, police arrested an individual fleeing the scene of an armed robbery in Bethpage, New York, who was in possession of a .40-caliber Smith & Wessen handgun purchased by Polidore. This same firearm was subsequently linked to a shooting incident in Hempstead on December 16, 2020
Additionally, on December 22, 2020, police investigating the scene of a homicide in Hempstead, New York, located a gun box that had been purchased along with a .40-caliber Glock handgun by Polidore.
To date, the whereabouts of at least 16 firearms purchased by Polidore are still unknown.
The government’s case is being prosecuted by the Office’s Long Island Criminal Division. Assistant United States Attorneys Anthony Bagnuola and Mark E. Misorek are in charge of the prosecution.
The Defendants:
PATRICK POLIDORE
Age: 32
Powder Springs, GeorgiaDENNIS WOLFOLK
Age: 29
Lovejoy, GeorgiaE.D.N.Y. Docket No. 22-CR-347 (JMA)
Long Island Man Convicted of Attempted Sex Trafficking, Attempted Kidnapping, Unlawful Possession of a Firearm and Obstruction of JusticeRead the Press Release
Earlier today, in federal court in Central Islip, Andrew Frey pleaded guilty before United States Magistrate Judge Arlene R. Lindsay to being a felon in possession of a firearm and obstruction of justice. Today’s guilty plea follows the defendant’s conviction by a federal jury of the attempted sex trafficking and attempted kidnapping of two victims. The verdict in that case was returned on September 20, 2022 after two weeks of trial before United States District Judge Joan M. Azrack. When sentenced, the defendant faces a mandatory minimum sentence of 15 years’ imprisonment, and up to life in prison.
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 guilty plea and verdict.
“Frey targeted and used violence against vulnerable members of our society seeking to exploit them for his own sexual gratification,” stated United States Attorney Peace. “Fortunately, the young women whom the defendant sought to victimize were able to escape. Today’s guilty plea, and the jury’s verdict, make clear there was no escape from justice for this dangerous defendant.”
Mr. Peace also expressed his appreciation to the Suffolk County Sheriff’s Office, the Suffolk County District Attorney’s Office and the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives for their assistance.
“The victims in this case jumped from a moving vehicle rather than risk the fate Frey had waiting for them. Based on the weapons investigators discovered, Frey's intent was dangerous, if not deadly. These women should be commended for their bravery, which we hope will serve as motivation for any other women being victimized by sexual predators to call us,” stated FBI Assistant Director-in-Charge Driscoll.
“The defendant has proven to be a dangerous individual with a propensity for preying upon and attacking vulnerable women who refuse to bend to the will of a sexual predator,” stated SCPD Commissioner Harrison. “I commend the victims for taking action and coming forward to work with law enforcement to bring a violent and dangerous man to justice.”
As proven at trial, the defendant attempted to traffic and kidnap two women in Suffolk County. In October 2018, the defendant lured a sex worker who was addicted to heroin into his car in Mastic, New York. When the victim refused to accompany him to a secluded location on the beach, the defendant became enraged and threatened her life. He tried to trap her inside his car by speeding, locking the doors and grabbing her neck. The victim managed to escape by jumping from his moving vehicle, suffering injuries to her back when she struck the pavement. The defendant later tracked down his victim sleeping inside of a friend’s parked car at a Long Island Railroad station. Armed with a knife, the defendant tried to remove the victim from the car, but her friend sped away. The defendant chased after them in his car, but the victim once again managed to escape.
In July 2019, the defendant attempted to take a second sex worker to a secluded wooded area in Coram, New York. When she refused, the defendant became enraged, screamed that he “owned” her and tried to prevent her from leaving by grabbing her as he was driving. The defendant’s second victim also escaped by jumping out of his moving car, suffering injuries to her knee.At the time of the defendant’s arrest in November 2019, law enforcement officers searched the defendant’s car and found multiple sets of handcuffs, as well as knives, rope and other items that he could use for restraint. The defendant had installed a device in his car which allowed him to conceal his license plate with the push of a button. Additionally, law enforcement officers recovered a Glock 23 handgun and ammunition located in a safe inside of the defendant’s home. Because the defendant was a convicted felon and was not legally permitted to possess a firearm, he pressured his son to obtain a pistol permit to conceal that he was the true owner of the firearm.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorneys Oren Gleich, Ivory L. Bishop, Jr., Justina Geraci and Christopher Caffarone are in charge of the prosecution with the assistance of paralegal Dejah Turla.
The Defendant:
ANDREW FREY
Age: 57
Coram, New YorkE.D.N.Y. Docket No. 19-CR-537 (S-2) (JMA)
Former Broker Sentenced to 36 Months in Prison for Stock Fraud SchemeRead the Press Release
Earlier today, in federal court in Brooklyn, Craig Josephberg, a former registered broker who worked at multiple brokerage firms in New York, New York, was sentenced by United States District Judge Eric N. Vitaliano to 36 months imprisonment, to be followed by three years’ supervised release, for orchestrating a multi-million-dollar market manipulation scheme. Josephberg was also ordered to pay more than $16 million in restitution and $706,052 in forfeiture. Josephberg pleaded guilty to the charges set forth in a superseding indictment in March 2018, including two counts of securities and wire fraud conspiracy, two counts of securities fraud, and one count of wire fraud relating to his manipulation of stocks of multiple microcap or “penny” stocks, including the stock of CodeSmart Holding, Inc. (CodeSmart), Cubed, Inc. (Cubed), and others, (collectively the “Manipulated Public Companies”).
Breon Peace, United States Attorney for the Eastern District of New York, announced the sentence.
“Josephberg abused his position as a registered broker to victimize both his customers and the investing public through an expansive fraud scheme to manipulate the stock price of multiple companies for his own financial benefit,” stated United States Attorney Peace. “This prosecution and sentence shows that licensed professionals will be held to account when they deceive their customers and harm investors.”
Mr. Peace expressed his thanks to the Federal Bureau of Investigation, New York Field Office (FBI), and the United States Securities and Exchange Commission, New York Regional Office, for their invaluable efforts in the case.
The evidence at the trial of his co-conspirator Abraxas Discala established that Josephberg and his co-defendants participated in two schemes to manipulate the stock price of CodeSmart and Cubed as part of an overarching conspiracy to commit securities, mail and wire fraud with respect to the Manipulated Public Companies.
Josephberg’s co-defendant Abraxas Discala purported to raise capital for private start-up companies and offered to take them public through reverse mergers with public shell companies in exchange for obtaining control of a large portion of the free trading or unrestricted stock. Josephberg, Discala and their co-conspirators, including co-defendants Ira Shapiro, Marc Wexler, Matthew Bell, Victor Azrak, Darren Goodrich, Darren Ofsink and Michael Morris, then artificially inflated that stock through manipulative trading and promotional campaigns, generating large profits for themselves at the expense of unwitting investors. Josephberg, a registered investment advisor, sold inflated shares in the Manipulated Public Companies to his clients, ultimately leaving them with worthless shares while he made approximately $700,000 in trading profits, as well as additional commission income.
- The CodeSmart Scheme
In early May 2013, Discala and his co-conspirators engineered a reverse merger of CodeSmart, a private company, with a shell public company. After gaining control of CodeSmart’s unrestricted shares, Discala and his co-conspirators on two occasions, fraudulently inflated CodeSmart’s share price and trading volume and then sold the unrestricted CodeSmart stock at a profit when the share price reached desirable levels. Shapiro, the Chief Executive Officer of CodeSmart, issued numerous press releases, including press releases with false information to facilitate inflating CodeSmart’s stock price. The defendants fraudulently manipulated CodeSmart’s stock price from $1.77 to a high of $6.94 on July 12, 2013, leading to an inflated market capitalization of over $85 million.
The co-conspirators, including Josephberg, profited by selling CodeSmart stock, issued to them at pennies, to their clients and customers. On some occasions, Josephberg had his customers buy CodeSmart shares without his customers’ knowledge and consent. Additionally, Josephberg sold CodeSmart shares in his personal trading accounts at the same time that he purchased CodeSmart stock in his customers’ accounts.
Josephberg, Discala, Wexler, Bell, Ofsink and Morris made more than $6 million in illicit trading profits from the CodeSmart scheme, and the co-conspirators caused more than $12.5 million in losses to approximately 900 CodeSmart investors who purchased the publicly traded stock.
- The Cubed Scheme
In March 2014, Discala and his co-conspirators took Cubed public through an asset purchase agreement by a shell public company. After gaining control of all of Cubed’s unrestricted shares, between April 22, 2014 and April 30, 2014, Discala and his co-defendants, including Josephberg, Wexler, Bell, Goodrich and Azrak, fraudulently created trading volume in Cubed stock by purchasing more than 50% of the total number of Cubed shares purchased during this period. The defendants also were able to successfully control the price and volume of Cubed’s stock. Josephberg both purchased and placed bids on Cubed stock at specific prices to help manipulate the stock price and create the appearance of false demand. On June 23, 2014, Cubed reached its highest closing price of $6.75 per share, resulting in a market capitalization of approximately $200 million. Investors who bought publicly traded Cubed stock lost over $400,000. In addition, Cubed was able to raise over $2 million in a private offering of stock to investors who were deceived by how Cubed stock was performing in the market. Discala and Wexler also made over $1 million worth of illegal private sales of Cubed stock to over three dozen investors. Discala and his co-conspirators caused more than $4 million in total losses to approximately 100 Cubed investors.
***
Discala, who was convicted after a trial, was previously sentenced to 138 months imprisonment and ordered to pay $16,346,023 in restitution. The remaining convicted defendants entered guilty pleas. Shapiro was previously sentenced to 21 months imprisonment and ordered to pay $12,557,553 in restitution, Goodrich was previously sentenced to 41-months imprisonment and ordered to pay $479,007.05 in restitution, and Morris was sentenced 6 months imprisonment and ordered to pay $112,575. 35 in resitution. Wexler, Bell, Azrak, and Ofsink are awaiting sentencing.
In July 2022, Mr. Peace was selected as the Chairperson of the White Collar Fraud subcommittee for the Attorney General’s Advisory Committee (AGAC). As the leader of the subcommittee, Mr. Peace will play a key role in making recommendations to the AGAC to facilitate the prevention, investigation and prosecution of various financially motivated, non-violent crimes including mail and wire fraud, bank fraud, health care fraud, tax fraud, securities and commodities fraud, and identity theft.
The government’s case is being handled by the Office’s Business and Securities Fraud Section. Assistant United States Attorney Shannon C. Jones is in charge of the prosecution. Assistant United States Attorney Claire Kedeshian of the Office’s Asset Recovery Section is handling forfeiture matters.
The Defendant:
CRAIG JOSEPHBERG
Age: 49
New York, NYE.D.N.Y. Docket No. 14-CR-399 (S-1)(ENV)
Brooklyn Man Sentenced to 30 Years in Prison for Jihadist-Inspired Attack on New York City Police Department OfficersRead the Press Release
Earlier today, in federal court in Brooklyn, Dzenan Camovic was sentenced by United States District Judge Rachel P. Kovner to 30 years in prison for the robbery of a New York City Police Department (NYPD) officer’s firearm and discharging that firearm at several NYPD officers during the course of the robbery. Camovic, who was inspired by terrorism, is a Bosnian citizen illegally in the United States. He will be deported after completing his sentence. He is also scheduled to be sentenced in state court in Brooklyn today to state charges arising out of the same conduct.
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 Sewell, Commissioner, New York City Police Department (NYPD), announced the sentence.
“Today’s 30-year sentence, along with Camovic’s removal from the United States, guarantees the community will be protected from his hate-filled ideology and actions,” stated United States Attorney Peace. “We will never stop working to protect the safety of our brave law enforcement officers and community from those who would do them harm.”
Mr. Peace expressed his appreciation to the FBI’s New York Joint Terrorism Task Force for its outstanding work on the case and the Kings County District Attorney’s Office for their assistance.
“As today's sentence demonstrates, those who direct hate-fueled violence at anyone - including the brave men and women of law enforcement - will face stiff consequences in our criminal justice system. Along with our partners on the Joint Terrorism Task Force, we remain steadfast in our determination to protect our city and our Nation from terrorists and their violent extremist ideology,” stated FBI Assistant Director-in-Charge Driscoll.
“An attack against New York City police officers is an attack against our city and way of life – and today’s sentencing of Dzenan Camovic sends a clear message that such violence will never be tolerated,” said Police Commissioner Sewell. “Our NYPD family is thankful our brave officers survived this premeditated ambush. I commend our NYPD investigators, our partners in the FBI’s New York Joint Terrorism Task Force, and the prosecutors in the United States Attorney’s Office in the Eastern District of New York, for their work in this case. Together, we will never stop working to protect our city.”
As set forth in court filings and during the plea and sentencing proceedings, on the evening of June 3, 2020, in the midst of a public health emergency and while New York City was under a nightly curfew order, Camovic attacked several uniformed NYPD officers assigned to post near the intersection of Flatbush and Church Avenues in Brooklyn, New York. At approximately 11:50 p.m., Camovic rounded the corner from Flatbush Avenue onto Church Avenue and stabbed one of the officers (Officer 1) in the neck with a knife. After stabbing Officer 1, Camovic chased the second officer (Officer 2), lunging at him and attempting to stab him. Camovic then ran back to Officer 1, attacked him, forcibly took control of Officer 1’s firearm and fired multiple shots at Officer 2 and other officers who responded to the scene. Responding officers ultimately shot Camovic and took him into custody. Several officers suffered injuries during Camovic’s attack and robbery, including Officer 1, who was stabbed in the neck, and Officer 2, who was shot in the hand and lost a finger as a result. A third officer also sustained a gunshot wound to the hand.
During his attack on the police officers, Camovic repeatedly shouted “Allahu Akbar,” a common Arabic phrase meaning “God is the greatest,” that has been used by perpetrators of jihadist terror attacks during the commission of violent attacks. Prior to the attack, Camovic possessed a significant volume of radical jihadist propaganda.
During the sentencing proceeding, and as stipulated in Camovic’s plea agreement, Judge Kovner found that the terrorism enhancement to the United States Sentencing Guidelines—an enhanced sentence for certain criminal conduct that was calculated to influence or affect the conduct of government by intimidation or coercion—is applicable to his offense.
The government’s case is being handled by the Office’s National Security and Cybercrime Section. Assistant United States Attorneys Craig R. Heeren, Artie McConnell and Josh Hafetz are in charge of the prosecution.
The Defendant:
DZENAN CAMOVIC
Age: 22
Brooklyn, New YorkE.D.N.Y. Docket No. 20-CR-326 (RPK)
Two New York City Correction Officers Plead Guilty to Accepting Bribes in Exchange for Smuggling Contraband into Rikers Island for Gang MembersRead the Press Release
Earlier today, in federal court in Brooklyn, New York City correction officer Krystle Burrell pleaded guilty to bribery, admitting that she accepted nearly $10,000 in bribe payments in exchange for smuggling contraband into Rikers Island. On August 16, 2022, New York City correction officer Katrina Patterson pleaded guilty to bribery, admitting that she accepted more than $34,000 in bribe payments in exchange for smuggling contraband into Rikers Island. Burrell and Patterson are employed by the New York City Department of Corrections (DOC). Burrell’s proceeding was held before United States District Judge Kiyo A. Matsumoto, and Patterson’s proceeding was held before United States District Judge Carol Bagley Amon.
Breon Peace, United States Attorney for the Eastern District of New York, Ricky J. Patel, Acting Special Agent-in-Charge, Homeland Security Investigations, New York (HSI), Jocelyn E. Strauber, Commissioner, New York City Department of Investigation (DOI), and Keechant L. Sewell, Commissioner, New York City Police Department (NYPD), announced the guilty pleas.
“The defendants threw in their lot with Bloods gang members and betrayed their sworn duty to maintain the safety of incarcerated individuals and other correction officers at Rikers Island by smuggling cell phones and drugs into the jail,” stated United States Attorney Peace. “This Office and our law enforcement partners are committed to rooting out corruption at Rikers Island.”
DOI Commissioner Jocelyn E. Strauber said, "These two Correction Officers took bribes in return for smuggling contraband to inmates, crimes that risked the safety and security of the jails and willfully circumvented Correction Department regulations. These violations of their duty carry serious consequences, including termination from their City employment. DOI and our law enforcement partners will continue to target contraband smuggling and other misconduct that destabilizes the City’s jails.”
“When correction officers betray their oath to serve and protect, the public is put at risk and the entire law enforcement community is tarnished,” stated NYPD Commissioner Sewell. “We have zero tolerance for such misconduct. With today’s guilty plea, Ms. Burrell joins Ms. Patterson in publicly acknowledging that their actions were immoral, unethical, and without integrity – diametrically opposed to the core requirements of our profession. I commend all of our partners for their dedication to uncovering and eradicating corruption in all of its forms.”
“These officers were tempted by greed to betray their duty. By taking bribes to smuggle prohibited contraband to incarcerated known gang members, they violated the oath they swore and became criminals themselves,” said HSI New York Acting Special Agent in Charge Patel. “HSI is committed to making our communities safer by disrupting gang activity wherever it occurs, whether on the streets or in prisons.”
According to court documents and facts presented at the guilty plea proceedings, Patterson accepted at least $34,090 in bribes from co-conspirators on behalf of co-defendant Michael Ross in exchange for Patterson smuggling contraband into the Robert N. Davoren Center on Rikers Island for Ross. Ross, who was incarcerated on unrelated offenses, arranged for the bribes to be sent to Patterson. DOC personnel subsequently located narcotics and cell phones in Ross’s cell. Law enforcement also recovered Patterson’s text messages, including messages where a co-conspirator told Patterson that some of the contraband would be “4 black joints in 1 paper,” and Patterson responded, “it better be wrapped so many times I don’t want to smell it.”
Burrell accepted bribes in exchange for smuggling contraband into the Anna M. Kross Center on Rikers Island for co-defendant Terrae Hinds, facilitating Hinds’ contraband smuggling business and permitting Hinds and others to violate DOC regulations. Hinds, who was incarcerated on unrelated offenses, arranged for approximately $9,780 in bribe payments to be sent to Burrell. In exchange, Burrell smuggled at least two unauthorized cell phones to Hinds, and also facilitated Hinds’ sale of narcotics and other contraband items at the Anna M. Kross Center.
When sentenced, Burrell faces up to 10 years’ imprisonment and Patterson faces up to five years’ imprisonment. Ross, who is a Bloods gang member, has also pleaded guilty to a bribery offense and is awaiting sentencing. Charges against Hinds remain pending.
The government’s case is being handled by the Office’s Public Integrity Section. The government’s case is being prosecuted by Assistant United States Attorney Philip Pilmar.
The Defendants:
KATRINA PATTERSON
Age: 31
Jamaica, New YorkE.D.N.Y. Docket No. 22-CR-196 (CBA)
KRYSTLE BURRELL
Age: 35
Lawrence, New YorkE.D.N.Y. Docket No. 22-CR-195 (KAM)
Members of the "Bully Gang" Charged in Superseding Indictment with Murders, Racketeering, Arson, Narcotics Trafficking, Money Laundering, and Firearms OffensesRead the Press Release
A superseding indictment was unsealed today in federal court in Brooklyn charging 26 defendants, including nine members and associates of the violent New York City-based street gang known as the “Bully Gang” with various offenses, including racketeering, murder, drug trafficking, money laundering, and firearms offenses. The superseding indictment includes new charges against the following members and associates of the Bully Gang for three murders and one attempted murder in Brooklyn, New York and Queens, New York committed in 2018 and 2020:
- Derrick Ayers, also known as “Dee” is charged with the March 3, 2018 murder of Jonathan Jackson in Brooklyn.
- Franklin Gillespie, also known as “Spazz” and “Frankie Gino,” is charged with the April 11, 2020 murder of Paul Hoilett in Brooklyn.
- Gillespie and Anthony Kennedy, also known as “Biggie,” are charged with the April 15, 2020 murder of Mike Hawley in Queens.
- Demetrius Johnson, also known as “Q,” is charged with the July 18, 2020 attempted murder of a victim in Brooklyn.
The superseding indictment also charged four new defendants, Tiri Brown, also known as “Tyhoe,” Courtney Foster, also known as “Biga,” Avery Goodluck, also known as “Ave,” and Johnson, with narcotics trafficking charges for their role in a scheme to traffic narcotics between New York and Maine.
Ayers, Gillespie, and Kennedy were previously in custody on the underlying indictment. Defendants Brown, Foster, Goodluck, and Johnson were arrested today and will be arraigned this afternoon before United States Chief Magistrate Judge Cheryl L. Pollak.
Breon Peace, United States Attorney for the Eastern District of New York, John B. DeVito, Special Agent-in-Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives, New York Field Division (ATF), Keechant L. Sewell, Commissioner, New York City Police Department (NYPD), announced the arrests and charges and Jocelyn Strauber, Commissioner, New York City Department of Investigation (DOI), announced the new charges.
“As demonstrated by the superseding indictment, the dismantling of the Bully Gang is continuing with its members being held accountable for the cold-blooded murders, mayhem, and narcotics trafficking they unleashed upon the district,” stated United States Attorney Peace. “Reducing gun violence is a high priority for this Office and I commend our prosecutors and law enforcement partners for their relentless efforts to do justice to make our communities safer.”
“This superseding indictment shows the relentless efforts of federal, state, and local partners to hold violent criminals accountable,” ATF Special Agent in Charge DeVito said. “I commend the hard work of the ATF Joint Firearms Task Force, NYPD, NYC Department of Investigation and the U.S. Attorney’s Office for leaving no stone unturned to charge those who commit senseless acts of violence in the name of loyalty to their gang. ATF’s commitment to protecting the public from violent offenders in collaboration with our partners is unwavering.”
“Targeting and dismantling gangs and crews, and preventing the violence so often associated with their illegal activities, are among the highest priorities for the NYPD and our law enforcement partners,” stated NYPD Commissioner Sewell. “By focusing on the relatively small number of people responsible for much of the crime and disorder in New York City and beyond, we remain relentless in our efforts to identify and arrest anyone who involves themselves in such senseless acts.”
DOI Commissioner Jocelyn E. Strauber said, "Gang violence and drug trafficking jeopardize communities within and beyond New York City. DOI and our law enforcement partners are committed to hold accountable those who engage in this very serious criminal conduct. DOI was pleased to assist the United States Attorney's Office for the Eastern District of New York and our other law enforcement partners on this important investigation."
As set forth in the superseding indictment and other court filings, members and associates of the Bully Gang used force and violence to promote its power, terrorize communities in multiple states and enrich themselves and their members. Their members engaged acts of violence including murder, attempted murder, armed robbery, and arson. The superseding indictment adds charges stemming from the gang’s years-long use of violence and brutality to target its enemies. As alleged, on August 21, 2017, Bermon Clarke, a leader in one of the charged narcotics conspiracies, set fire to a house in Blaine, Maine with at least two occupants inside. The March 3, 2018 murder of Jonathan Jackson alleged in the indictment was the culmination of an exchange of gunfire that followed a “gender reveal” party in Brooklyn, New York. As alleged, during a foot chase along Kings Highway, Ayers repeatedly fired on Jackson at close range. The murders of Hoilett and Hawley occurred just days apart in April 2020. As alleged, Gillespie targeted Hoilett, approaching him from behind and firing at the back of Hoilett’s head at point-blank range. Four days later, Gillespie and Kennedy allegedly lured Hawley to a meeting place in Far Rockaway where Hawley was shot and killed.
As alleged, the Enterprise and its co-conspirators also operated a years-long, sophisticated drug trafficking network responsible for trafficking large quantities of dangerous drugs like cocaine base (“crack”), heroin and fentanyl through New York to Maine, and elsewhere. The enterprise’s drug proceeds were collected on a regular basis and laundered through financial transactions and the purchase of high-value assets, including jewelry and cars. During the investigation, law enforcement seized more than $380,000 in cash, more than 15 firearms, six kilograms of cocaine, 600 grams of fentanyl, multiple luxury watches, and four vehicles with concealed “trap” compartments installed.
The charges in the indictment are allegations, and the defendants are presumed innocent unless and until proven guilty.
To date, 53 defendants have been charged as part of the prosecution with 27 pleading guilty.
The government’s case is being handled by the Office’s Organized Crime and Gangs Section. Assistant United States Attorneys Drew G. Rolle, Nicholas J. Moscow, Lindsey R. Oken, and Joy Lurinsky are in charge of the prosecution.
New Defendants:
TIRI BROWN
Age: 37
Brooklyn, New YorkCOURTNEY FOSTER
Age: 28
Brooklyn, New YorkAVERY GOODLUCK
Age: 32
Brooklyn, New YorkDEMETRIUS JOHNSON
Age: 26
Brooklyn, New YorkDefendants Previously Indicted:
JESSICA ALMEIDA
Age: 33
Detroit, MaineKASSIN APPLING (also known as “Killa” and “Kassim”)
Age: 34
Brooklyn, New YorkDERRICK AYERS (also known as “Dee” and “Mel”)
Age: 34
Rahway, New JerseyTYRONE BANKS (also known as “Ty Hitta”)
Age: 23
Brooklyn, New YorkJANET BLOOD
Age: 47
Troy, MaineDAYVON BOSTICK-SAMUELS (also known as “Daytoe”)
Age: 22
Brooklyn, New YorkJOHNNY CHILES
Age: 36
Brooklyn, New YorkBERMON CLARKE (also known as “G” and “Blue”)
Age: 28
Rahway, New JerseyMIKE GUSTAVO CONNOR (also known as “Gus”)
Age: 21
Brooklyn, New YorkRASHAAD CRAIG (also known as “Skeeno”)
Age: 25
Brooklyn, New YorkRONALD DAVIS (also known as “Ronno”)
Age: 29
Brooklyn, New YorkQUINTEN DELVALLE (also known as “Q”)
Age: 24
Brooklyn, New YorkELIZABETH DUECASTER
Age: 35
Searsport, MaineBRITTANY DUNCAN
Age: 26
Bayonne, New JerseyNEHEMIE ERIL (also known as “Poca”)
Age: 24
Orange, New JerseyCHRISTINA ESTEVEZ
Age: 31
Queens, New YorkLARON ESTRADA (also known as “Yetta”)
Age: 27
Brooklyn, New YorkERICA FAGGIOLE
Age: 44
MaineANTONIO FULTON (also known as “Tone”)
Age: 23
Brooklyn, New YorkFRANKLIN GILLESPIE (also known as “Spazz” and “Frankie Gino”)
Age: 30
Newark, New JerseyROMEO GONZALES
Age: 22
Brooklyn, New YorkNIA GOVAN (also known as “Cam” and “V”)
Age: 29
Boston, MassachusettsKEON GRANT (also known as “Keys”)
Age: 34
Brooklyn, New YorkMOELEEK HARRELL (also known as “Moe Money”)
Age: 31
Brooklyn, New YorkPAUL HARRIS (also known as “Baldhead”)
Age: 31
Brooklyn, New YorkNADINE HEATH
Age: 54
Troy, MaineROBERT HOLT (also known as “Ricky” and “Ghost”)
Age: 33
Brooklyn, New YorkAMANDA HUARD
Age: 38
Raymond, MaineLATRELL JOHNSON (also known as “Barlie Buckz”)
Age: 27
Brooklyn, New YorkANTHONY KENNEDY (also known as “Biggie”)
Age: 34
Queens, New YorkTYQUAWN LANE (also known as “Bicks” and “Tah Tah”)
Age: 27
Brooklyn, New YorkJOANNE LYDEM
Age: 49
Garland, MaineDARIUS MURPHY
Age: 24
Brooklyn, New YorkJESSICA PELKEY
Age: 26
Presque Isle, MaineCHRISHAWN PENN (also known as “Prince”)
Age: 26
Brooklyn, New YorkMICHAEL PEREZ (also known as “White Mike”)
Age: 29
Brooklyn, New YorkJOELLE POCHE (also known as “Rico”)
Age: 21
Brooklyn, New YorkTERRELL RATLIFF (also known as “Rello”)
Age: 29
Brooklyn, New YorkMICHAEL REID (also known as “Half”)
Age: 39
Brooklyn, New YorkISAIAH TERRY SANDIFORD
Age: 21
Brooklyn, New YorkJAMEL SMITH
Age: 23
Bronx, New YorkCHINASA STRACHAN
Age: 33
Brooklyn, New YorkNICOLETTE TOMPKINS
Age: 22
Westfield, MaineAMANDA WALTON (also known as “A”)
Age: 32
Portland, MaineDANIELLE WHITE
Age: 47
Swanville, MaineE.D.N.Y. Docket No. 20-CR-239 (S-8) (BMC)
Queens Man Pleads Guilty to Sexually Exploiting Three MinorsRead the Press Release
Earlier today, in federal court in Brooklyn, Rogelio Vega pleaded guilty to three counts of enticing a child to engage in sexual conduct. Today’s proceeding was held before United States Magistrate Judge Sanket J. Bulsara. When sentenced, Vega faces a statutory minimum sentence of 10 years’ imprisonment and a maximum of life imprisonment.
Breon Peace, United States Attorney for the Eastern District of New York, Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Keechant L. Sewell, Commissioner, New York City Police Department (NYPD), announced the guilty plea.
“The defendant’s use of the internet, including apps targeted to children, to sexually exploit minors is reprehensible,” stated United States Attorney Peace. “Protecting children from online predators will always be a priority of this office.”
“These were not just poor decisions on Mr. Vega’s part, they were calculated, despicable wrongs,” stated NYPD Commissioner Sewell. “Today’s guilty plea holds him responsible for his actions and prevents him from causing any additional harm. And he will forever be branded as a predator who used the internet to prey on underage victims for his own sexual gratification.”
As set forth in court filings, between approximately 2015 and January 2021, the defendant used the Kik Internet messaging application, which is marketed to teens, and the Grindr application, which is marketed to the LGBTQ population, to express his interest in “young guys” and coerce and entice three male victims between the ages of 14 and 16 to meet him for sexual acts. A review of messages found on the defendant’s cell phones revealed a series of messages in which the victims identified themselves as underage and the defendant arranged to meet them for sexual encounters in his car or at motels.
Department of Justice Trial Attorney Patrick J. Campbell is in charge of the prosecution.
The Defendant:
ROGELIO VEGA
Age: 52
Maspeth, New YorkE.D.N.Y. Docket No. 21-CR-563 (EK)
퀸스 남성, 외화 사기 및 자금 세탁 혐의로 의 징역형 및 $842,000 반환, 명령받다Read the Press Release
오늘 아침 브루클린 연방 법원 판결에서 존 원(John Won)은 2021년 11월의 증권 사기, 텔레뱅킹 사기 및 자금 세탁 등의 공모뿐만 아니라 실질적인 증권 사기를 포함한 모든 범죄 행위에 대한 유죄 선고 판정을 받은 후, 지역 담당 판사인 레이먼드 J. 디어리에 의해 1년 1일 징역형을 받았다. 피고 원씨는 자기 범죄의 희생자에 대해서 $842,000 이상의 금액을 반환하라는 판결도 받았다. 피고 원씨의 공동 피고인인 태형(Tae Hung, 케빈) 강씨는 증권 사기에 공모한 죄를 인정하여, 2021년 12월에 2년의 징역형을 받았다.
뉴욕 동부 지역 담당 연방 변호사인 브리언 피스와 미국 연방 수사국(FBI) 뉴욕 지사 부국장인 마이클 J. 드리스콜이 판결문을 발표했다.
“존 원과 케빈 강은 파렴치하게도 우리 한인 사회 일원을 상대로 사기 행각을 해서 그들이 저축한 돈과 노후 자금을 갈취하였습니다.”라고 변호사 피어스는 말했다. “이 형벌은 사기꾼과 협잡꾼이 자기의 무고한 희생자들에게 사기를 치면 받게 될 대가를 보여주고 있습니다. 그들은 반드시 체포되어, 형을 받고, 자신이 획득한 부당한 이익을 반환하도록 명령받을 것입니다.”라고 언급했다.
Mr. 피스는 이 사건 해결을 위해 적극적으로 협조한 미국 상품 및 선물 거래 위원회(CFTC)와 미국 선물 협회(NFA)에 대해 감사의 표시를 하였다.
2010년 10월과 2013년 12월 사이에 피고 원씨는 자기의 공동 피고인 태형 강씨 등과 공모하여 희생자의 대부분인 뉴욕 한인사회 일원을 상대로 외환 거래 계정 및 자기들이 차린 회사인 ForexNPower에 투자하도록 사기 행각을 벌였다. 사기 활동이 진행되면서 이들 공모자는 한국어 신문과 라디오 방송에 ForexNPower에서 손실 위험이 전혀 없이 월 10%의 수익을 보장하는 외환 거래에 사용되는 비법 알고리즘을 개발하였다고 선전하였다. 하지만, 실제로는 ForexNPower는 성공적인 거래 방법이 있지 않았기 때문에 그들의 고객은 막대한 금전적 손실을 보게 되었다.
공모자들은 또한 투자금이 자신들의 회사가 뉴저지의 새로운 장소로 확장하거나 외환 거래에 투자 및 사용될 예정이라고 거짓으로 주장하면서 ForexNPower 주식을 구매하도록 유인하기도 하였다. 하지만, 실제는 피고와 그 공모자들이 자금 대부분을 전용하였으며, 일부 나머지 금액은 위에 언급된 한국어 사기 광고에 사용하였다.
2022년 7월, Mr. 피스는 법무부 장관 자문위원회(AGAC)의 화이트칼라 사기 범죄 담당 분과 위원회 의장으로 선출되었다. 분과 위원회 의장으로서 Mr. 피스는 우편 사기 및 금융 사기, 은행 사기, 의료보험 사기, 세금 사기, 증권 및 물품 사기, 그리고 신원 정보 도용, 등을 포함한 다양한 금전 갈취 목적의 비폭력적 범죄의 예방, 조사 및 기소 활동을 AGAC에 추천하는 데 있어 중추적인 역할을 할 것이다.
정부의 케이스는 비즈니스 및 증권 사기 부서에서 담당하고 있다. 법무부 사기 전담 부서의 연방 부 변호사인 사라 M. 에번스, 니콜라스 J. 모스코 및 부국장인 제럴드 M. 무디 Jr.가 기소 담당자들이다.
피고 명단:
존 원(JOHN WON)
나이: 53세
뉴욕 화이트스톤 거주태형 강(TAE HUNG KANG) (일명, 케빈 강)
나이: 57
뉴욕 베이사이드 거주E.D.N.Y. 적요서 번호 18-CR-184 (RJD)