Eastern District of New York
Press releases recorded for this federal judicial district.
Queens Man Sentenced to Prison and to Pay $842,000 Restitution for Foreign Exchange Fraud and Money LaunderingRead the Press Release
Earlier today, in federal court in Brooklyn, John Won was sentenced by United States District Judge Raymond J. Dearie to a year and a day in prison following his November 2021 conviction at trial on all counts, including securities fraud, wire fraud and money laundering conspiracy, as well as substantive securities fraud. Won was also ordered to pay $842,076.81 in restitution to the victims of his crimes. Won’s do-defendant Tae Hung (Kevin) Kang pleaded guilty to securities fraud conspiracy and was sentenced to two years’ imprisonment in December 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 verdict.
“John Won and Kevin Kang shamelessly defrauded members of the Korean-American community in our district out of their nest eggs and life savings,” said United States Attorney Peace. “This sentence shows what fraudsters and con men should expect when they target innocent victims—they will be caught, punished and ordered to return their ill-gotten gains.”
Mr. Peace thanked the United States Commodities and Futures Trading Commission (CFTC) and National Futures Association (NFA) for their significant cooperation and assistance in this case.
Between October 2010 and December 2013, Won conspired with co-defendant Tae Hung Kang and others in a scheme to defraud victims, who were largely members of New York’s Korean-American community, into investing in foreign exchange trading accounts and in their company, called ForexNPower. In furtherance of this scheme, the conspirators issued advertisements in Korean-language newspapers and on Korean-language radio stations claiming that ForexNPower had a secret algorithmic trading method used to trade in the foreign exchange market that guaranteed investors 10% monthly returns at no risk of loss. In reality, ForexNPower had no successful trading method and their customer accounts suffered substantial losses.
The conspirators also induced investors to purchase stock issued by ForexNPower, by falsely claiming that the invested funds would be used to expand the business to a new location in New Jersey or pooled and used to trade foreign currencies. In truth, the defendant and his co-conspirators misappropriated a substantial portion of the funds, spending the remainder on, among other things, the fraudulent advertisements described above.
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 Attorneys Sarah M. Evans, Nicholas J. Moscow and Assistant Chief Gerald M. Moody, Jr. of the Department of Justice’s Fraud Section are in charge of the prosecution.
The Defendants:
JOHN WON
Age: 53
Whitestone, New YorkTAE HUNG KANG (also known as Kevin Kang)
Age: 57
Bayside, New YorkE.D.N.Y. Docket No. 18-CR-184 (RJD)
MS-13 Gang Member Pleads Guilty to 2015 Murder in Babylon, Attempted Murder in Bay Shore, and Other CrimesRead the Press Release
Earlier today, in federal court in Central Islip, Reynaldo Lopez-Alvarado, also known as “Mente,” a member of the Brentwood Locos Salvatruchas clique of La Mara Salvatrucha, also known as the MS-13, a transnational criminal organization, pleaded guilty to racketeering charges in connection with his participation in the November 19, 2015 murder of Cesar Rivera-Vasquez, an attempted murder that occurred on April 9, 2013 in Bay Shore, and conspiracy to commit obstruction of justice. The proceeding was held before United States Magistrate Judge Steven I. Locke. When sentenced, Lopez-Alvarado faces 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.
“In a twisted desire to enhance his status within the MS-13 gang and without any regard for human life, the defendant admittedly participated in extremely violent crimes, including murder and a shooting,” stated United States Attorney Peace. “Lopez-Alvarado faces very serious consequences for his senseless actions which I hope will be of some relief to the community, including the family and friends of his victims. This Office, together with the Long Island Gang Task Force, is working tirelessly to bring MS-13 gang members to justice for the havoc they have wrought on Long Island.”
“This case is a grim reminder of the inhumane acts individuals are willing to commit just to elevate their status within a gang,” stated SCPD Commissioner Harrison. “Let this guilty plea be a testament of our commitment to hold gang members accountable for their heinous crimes. We will continue to work with our law enforcement partners to ensure public safety on our streets.”
According to court filings and statements by the defendant at the guilty plea proceeding, Lopez-Alvarado participated in the April 9, 2013 attempted murder of a man on Benton Place in Bay Shore. Lopez-Alvarado, who was a new member of the MS-13 at the time, and another MS-13 member went out looking to kill a rival gang member in order for Lopez-Alvarado to gain full status in the gang. When they observed a group of men who they assumed were members of the rival Bloods street gang, Lopez-Alvarado and his co-conspirator retrieved a .25 caliber handgun and 20-gauge shotgun, drove back to Benton Place, approached the group of men and opened fire. One victim was struck and was subsequently transported to a local hospital, where he was treated and survived the shooting.
Approximately one month after that, Lopez-Alvarado conspired to obstruct justice by assisting fellow gang members after they had committed two murders. Specifically, on May 28, 2013, Lopez-Alvarado came to the aid of fellow gang members, who had just shot and killed Kennan Russell at a house party in Central Islip, when the minivan they had stolen and subsequently used in not only the Russell murder but also the May 26, 2013 murder of Derrick Mayes, ran out of gas and broke down. In addition to helping his fellow gang members get gas and hide the firearms used in the Russell murder, Lopez-Alvarado and other MS-13 members, who had learned that the minivan had been linked to the murders, agreed to destroy it. Lopez-Alvarado and his fellow MS-13 gang members then cleaned the minivan to remove any fingerprints, drove it to a wooded area in Ronkonkoma, doused it with gas, and set it on fire.
In addition, Lopez-Alvarado admitted during his guilty plea to participating in the murder of Rivera-Vasquez on November 19, 2015, in Babylon. Rivera-Vasquez was murdered by Lopez-Alvarado and other MS-13 members because the gang suspected him of belonging to a rival Mexican gang, Raza Loca. On the night of the murder, Lopez-Alvarado and his co-conspirators saw Rivera-Vasquez at a deli located near the Babylon Long Island Railroad train station. Lopez-Alvarado and the other MS-13 members convinced the victim to leave with them to smoke marijuana and brought him to an isolated area behind a nearby baseball field. The gang members, who were armed with knives and a baseball bat, told the victim to take off his shirt so they could observe a tattoo they believed signified the victim’s membership in the rival gang. After observing the tattoo, Lopez-Alvarado and the other MS-13 members attacked Rivera-Vasquez, beating him with the bat and stabbing him repeatedly with knives before one of the co-conspirators cut the victim’s throat. The MS-13 members buried Rivera-Vasquez’s body near a large mound of dirt. The body was discovered in April 2018.
Today’s conviction 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’s Long Island Gang Task Force, which is comprised of agents and officers of the FBI, SCPD, Nassau County Police Department, Nassau County Sheriff’s Department, Suffolk County Probation Office, Suffolk County Sheriff’s Office, 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 Defendant:
REYNALDO LOPEZ-ALVARADO
Age: 30
Brentwood, New YorkE.D.N.Y. Docket No. 16-CR-403 (GRB)
New York-Presbyterian/Queens Hospital Settles Allegations of Federal Health Care Fraud for over $2.5 MillionRead the Press Release
Breon Peace, United States Attorney for the Eastern District of New York, announced today a settlement agreement with New York-Presbyterian/Queens Hospital. The settlement agreement, which requires a payment of over $2.5 million, addresses allegations that a former physician at New York-Presbyterian/Queens performed services that were not medically necessary and then billed federal health care programs for those services. The services involved the replacement of implantable cardioverter defibrillator (ICD) pulse generator batteries.
“This more than $2.5 million settlement rectifies that New York-Presbyterian/Queens was paid by the federal government for unnecessary procedures,” stated United States Attorney Peace. “This Office is committed to combatting fraud and abuse of our federal health care programs, especially when such conduct potentially puts patients at risk.”
Procedure Overview
An ICD is akin to a pacemaker. It is placed under a patient’s skin and is designed to ensure that the patient’s heart beats on a regular rhythm. ICDs run on batteries. Like all batteries, ICD batteries will eventually fail, which could lead to disastrous consequences, even death. But replacing an ICD battery involves a surgical procedure, which carries risk. Physicians closely monitor the functioning of ICD batteries so that they replace the batteries when they are nearing the end of their lives, but no earlier. That way, physicians can balance the risks associated with a failing ICD battery against the risk of the procedure needed to replace that battery. Put in more technical terms, the standard of care is to replace an ICD battery only when it reaches what is called the elective replacement interval (ERI) as determined by device interrogation conducted by specially equipped computerized monitors.
Settlement
A physician who was formerly affiliated with New York-Presbyterian/Queens repeatedly replaced ICD batteries earlier than was necessary. That is, he repeatedly replaced ICD batteries before they reached the ERI. Such batteries were functioning normally. He therefore subjected his patients to unneeded and risky surgical procedures. New York-Presbyterian/Queens then submitted claims for payments to federal health care programs for these procedures.
As a result of an internal investigation, New York-Presbyterian/Queens learned of the physician’s conduct. It voluntarily self-disclosed that conduct to the United States Department of Health and Human Services, Office of Inspector General. The settlement here, which requires New York-Presbyterian/Queens to pay $2,588,882.50 to the United States, resolves claims that the conduct violated the federal False Claims Act.
The matter was handled by Assistant United States Attorney Michael Blume of the Office’s Civil Division.
Luchese Crime Family Soldier and Five Others Charged in Connection with Operating Long-Running Illegal Gambling BusinessRead the Press Release
Earlier today, in federal court in Brooklyn, an indictment was unsealed charging six defendants for their roles overseeing and operating a large-scale illegal, online gambling business under the protection of the Luchese organized crime family. In operation for more than 15 years, the gambling business known as “Rhino Sports,” utilized an offshore website and dozens of bookmakers in the New York area to take millions in illegal sports bets.
Four of the defendants, Luchese crime family solider Anthony Villani and associates Louis Tucci, Jr., Dennis Filizzola and James Coumoutsos, were arrested at their residences in the New York area, and are scheduled to be arraigned this afternoon by United States Magistrate Judge Roanne L. Mann. A fifth defendant, bookmaker Michael Praino, was arrested in West Palm Beach, Florida and will make his initial appearance tomorrow morning in federal court in West Palm Beach, Florida.
Breon Peace, United States Attorney for the Eastern District of New York and Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the charges.
“As alleged, this conduct demonstrates how members of La Cosa Nostra continue to engage in illegal gambling operations and money laundering money-marking schemes that lead to threats of violence against anyone who stands in their way and has resulted in millions of dollars in profits to the Luchese crime family,” stated United States Attorney Peace. “These charges illustrate this Office’s continued commitment to rooting La Cosa Nostra out of New York.”
Mr. Peace thanked the New York City Police Department, New York State Police, and the Westchester County Police for their assistance in the investigation.
"Members of the mafia are not giving up the tried and true methods of criminal behavior, even in the face of the burgeoning world of legal gambling. As we allege, a Luchese soldier and other family members ran an illegal gambling operation and offered their clientele the same twisted customer service: do what they say or face terrifying consequences. One thing these criminals can bet on - the FBI will continue our pursuit," stated Assistant Director-in-Charge Driscoll.
As alleged in the indictment and court filings, defendant Anthony Villani, an alleged Luchese solider, oversaw a large-scale illegal gambling business called Rhino Sports (the “Gambling Business”). The Gambling Business was in continuous operation from at least 2004 through December 2020. During that period, the Gambling Business was hosted online using offshore servers in Costa Rica and employed local bookmakers to pay and collect winnings in cash. Records obtained from the Gambling Business’s website indicated that Villani’s illegal gambling operation regularly took bets from between 400 and 1,300 bettors each week, most of whom were based in New York City and the metropolitan area. As alleged, Villani’s bookmakers regularly included members and associates of the Luchese crime family and other La Cosa Nostra families. As part of the scheme, Villani employed co-conspirators Louis Tucci, Jr. and Dennis Filizzola, as runners to assist in operating the business. Villani is alleged to have received more than $1 million annually from the business. During law enforcement searches related to this matter in December 2020, agents recovered over $407,000 in cash from one of Villani’s residences, as well as brass knuckles and gambling ledgers.
The unsealed indictment charges Villani with racketeering in connection with participation in various criminal schemes, including illegal gambling, money laundering and attempted extortion. As one part of the money laundering, Villani and co-defendant Filizzola used gambling proceeds to purchase U.S. Postal Service money orders disguised as rent payments to a property owned by Villani. Further, between April 2020 and October 2020, Villani is alleged to have attempted to extort an individual identified as John Doe in the indictment, including by telling John Doe: “I’m telling you right now, you don’t get this money – [expletive] run away.”
The government’s case is being handled by the Office’s Organized Crime and Gangs Section. Assistant United States Attorneys James P. McDonald and Antoinette N. Rangel are in charge of the prosecution. Assistant United States Attorney Claire S. Kedeshian is handling forfeiture in this case.
The Defendants:
ANTHONY VILLANI
Age: 57
Elmsford, NYJAMES COUMOUTSOS (also known as “Quick”)
Age: 59
Bronx, NYDENNIS FILIZZOLA
Age: 58
Cortlandt Manor, NYMICHAEL PRAINO (also known as “Platinum”)
Age: 44
Bronx, NYLOUIS TUCCI, JR. (also known as “Tooch”)
Age: 59
Tuckahoe, NYLong Island Man Sentenced to More Than 16 Years in Prison for Heroin and Fentanyl Trafficking Related to Death of a 21-Year-Old Massapequa WomanRead the Press Release
Earlier today, at the federal courthouse in Central Islip, United States District Judge Gary R. Brown sentenced Donta Riddick to 198 months in prison for possessing and distributing heroin and fentanyl. As part of his guilty plea, Riddick also admitted to the distribution of heroin and fentanyl on September 13, 2020 that caused the death of a 21-year old woman from Massapequa, New York. Riddick pleaded guilty on January 28, 2022.
Breon Peace, United States Attorney for the Eastern District of New York, Frank A. Tarentino III, Special Agent-in-Charge, Drug Enforcement Administration, New York Division (DEA), and Patrick J. Ryder, Commissioner, Nassau County Police Department (NCPD), announced the sentence.
“Today’s sentencing is justice served for the trauma that the defendant directly caused to our district, including the death of his young neighbor,” stated United States Attorney Peace. “This Office, together with our federal and local partners, works tirelessly to hold accountable those who deal deadly drugs and contribute to the opioid epidemic’s devastating impact on our communities.”
DEA Special Agent in Charge Frank Tarentino said, “Drug investigations like this underscore the devastating impact that every drug overdose and poisoning has on a family. Fentanyl is the deadliest drug to ever hit our streets and responsible for nearly 70% of nationwide drug-related deaths. DEA and our law enforcement partners are doubling down on defeating drug trafficking networks and bringing to justice those responsible for taking lives.”
“The sentencing of defendant Donta Riddick to 16.5 years in prison will hopefully bring some closure for the victim’s family, as this drug dealer will not be back on the streets of Nassau County. The defendant was found guilty of dealing drugs laced with fentanyl to our residents and caused the death of a 21-year-old female victim from Massapequa. Defendant Riddick infected our neighborhoods with these illegal drugs until his arrest, conviction and sentencing and I would like extend my appreciation to the investigators and their agencies for a job well done. The Nassau County Police Department is committed to enforcing all drug related crimes and will continue to offer assistance to those addicted to drugs,” stated Nassau County Police Department Commissioner Ryder.
According to court filings and statements made by the defendant at the guilty plea proceeding, on the night of September 13, 2020, Riddick sold fentanyl-laced heroin to the victim, who suffered a fatal overdose at a motel in Massapequa the following morning. A review of the victim’s cell phone by law enforcement revealed text messages she exchanged with Riddick in which she appeared to be ordering heroin from the defendant. On September 15, 2020, during the subsequent investigation by the DEA and NCPD, Riddick was arrested in possession of street-level quantities of the same fentanyl-laced heroin that had caused the death of the victim the day before.
At Riddick’s sentencing, the victim’s aunt spoke and described the traumatic impact of losing her niece to an overdose.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorneys Charles N. Rose and Samantha Alessi are in charge of the prosecution, with assistance from Paralegal Dejah Turla.
The Defendant:
DONTA RIDDICK
Age: 35
West Babylon, New YorkE.D.N.Y. Docket Nos. 20-CR-517 (S-1) (GRB)
Defendant Pleads Guilty to Bank Secrecy Act ChargesRead the Press Release
Earlier today, in federal court in Brooklyn, Hanan Ofer pleaded guilty to failing to maintain an effective anti-money laundering program in violation of the Bank Secrecy Act, as part of a scheme to bring lucrative and high-risk international financial business to a small, unsophisticated credit union. Today’s proceeding took place before United States Magistrate Judge Ramon E. Reyes, Jr. When sentenced, Ofer faces up to 10 years in prison.
Breon Peace, United States Attorney for the Eastern District of New York, Kenneth Polite Jr., Assistant Attorney General of the Justice Department’s Criminal Division, and Rick J. Patel, Acting Special Agent-in-Charge, Homeland Security Investigations, New York (HSI), announced the guilty plea.
“Ofer willfully disregarded provisions of the Bank Secrecy Act that are designed to prevent money laundering and the use of our financial system for criminal ends. This Office will vigorously enforce those laws to ensure the integrity of the U.S. financial system,” stated United States Attorney Peace. “With his admissions today, the defendant will be held responsible for exposing financial institutions to the risk of illicit activity.”
“Ofer’s failure to implement anti-money laundering practices as required by the Bank Secrecy Act (BSA) exposed Financial Institutions to the likelihood of high-risk transactions which ultimately led to the processing of billions in bulk cash from Mexican-based banks without proper oversight,” stated HSI Acting Special Agent-in- Charge Patel. “Money laundering is a vital component of transnational criminal organizations wishing to legitimize their ill-gotten gains and ensuring the compliance of BSA regulations is the first step to fighting these organizations. HSI is a leader in financial crimes investigations and will continue to seek the prosecution of those who attempt to circumvent the law for quick financial gains.”
According to court filings, from 2014 to 2016, Ofer operated the New York State Employees Federal Credit Union Services Organization (NYSEFCU-CUSO), a money services business that was required to have an effective anti-money laundering program. Through the NYSEFCU-CUSO and other entities, Ofer participated in a scheme that brought over $1 billion in high-risk transactions, including millions of dollars of bulk cash transactions from a Mexican bank, to the New York State Employees Federal Credit Union (NYSEFCU).
Ofer was experienced in international banking and trained in anti-money laundering compliance and procedures, and represented to the NYSEFCU that he and the NYSEFCU-CUSO would conduct appropriate anti-money laundering oversight as required by the Bank Secrecy Act. Instead, Ofer failed to implement an effective anti-money laundering program at the NYSEFCU-CUSO. This failure caused the NYSEFCU to process high-risk transactions, including from Mexican banks, without appropriate oversight and without ever filing a single Suspicious Activity Report, as required by law.
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, in coordination with the Office’s Bank Integrity Task Force, which is charged with investigating and charging corporate and individual actors who launder criminal proceeds using the U.S. banking system and enforcing anti-money laundering controls under the Bank Secrecy Act. Assistant United States Attorneys Ryan C. Harris and Francisco J. Navarro of the Eastern District of New York are prosecuting the case with Trial Attorneys Margaret Moeser and Leigh Kessler of the Criminal Division’s Money Laundering and Asset Recovery Section. The investigation is being conducted by HSI’s El Dorado Task Force in New York.
The Defendant:
HANAN OFER
Age: 69
New York, New YorkE.D.N.Y. Docket No. 21-CR-174 (DG)
Banker Pleads Guilty to Bank Secrecy Act ChargesRead the Press Release
A New York man pleaded guilty today in the Eastern District of New York to failure to maintain an effective anti-money laundering program in violation of the Bank Secrecy Act as part of a scheme to bring lucrative and high-risk international financial business to a small, unsophisticated credit union.
According to court documents, from 2014 to 2016, Hanan Ofer, 69, of New York City, operated the New York State Employees Federal Credit Union Service Organization (NYSEFCU-CUSO), a money services business that was required to have an effective anti-money laundering program. Through the NYSEFCU-CUSO and other entities, Ofer participated in a scheme that brought more than $1 billion in high-risk transactions, including millions of dollars of bulk cash transactions from a Mexican bank, to the New York State Employees Federal Credit Union (NYSEFCU).
Ofer was experienced in international banking and trained in anti-money laundering compliance and procedures, and represented to the NYSEFCU that he and his businesses would conduct appropriate anti-money laundering oversight as required by the Bank Secrecy Act. Instead, Ofer willfully failed to implement an effective anti-money laundering program at the NYSEFCU-CUSO. This failure caused the NYSEFCU to process the high-risk transactions without appropriate oversight and without ever filing a single Suspicious Activity Report, as required by law.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, U.S. Attorney Breon Peace for the Eastern District of New York, and Acting Special Agent in Charge Ricky J. Patel of Homeland Security Investigations (HSI) New York made the announcement.
HSI New York investigated the case.
Trial Attorneys Margaret Moeser and Leigh Kessler of the Criminal Division’s Money Laundering and Asset Recovery Section (MLARS) and Assistant U.S. Attorneys Ryan C. Harris and Francisco J. Navarro for the Eastern District of New York are prosecuting the case.
MLARS’s Bank Integrity Unit investigates and prosecutes banks and other financial institutions, including their officers, managers, and employees, whose actions threaten the integrity of the individual institution or the wider financial system.
Leader of Brooklyn-Based Eastern European Organized Crime Syndicate Extradited from Switzerland to Face Racketeering and Other ChargesRead the Press Release
Viktor Zelinger, also known as “Vitya” and “Vityok,” the alleged leader of an Eastern European organized crime syndicate that operated in the Brighton Beach, Sheepshead Bay and Coney Island neighborhoods of Brooklyn and was linked to high-level Russian mafia members known as “Thieves in Law” or “Thieves,” was extradited today from Switzerland to the United States on a nine-count superseding indictment. Zelinger is charged with racketeering, racketeering conspiracy, arson, arson conspiracy, illegal gambling, illegal gambling conspiracy, extortionate collection of credit and two counts of extortionate collection of credit conspiracy. Zelinger, who is a naturalized U.S. citizen with dual Ukrainian citizenship, is scheduled to be arraigned tomorrow in federal court in Brooklyn before United States Magistrate Judge Peggy Kuo.
Breon Peace, United States Attorney for the Eastern District of New York, Frank A. Tarentino III, Special Agent-in-Charge, Drug Enforcement Administration, New York Division (DEA), and Thomas Fattorusso, Special Agent-in-Charge, Internal Revenue Service-Criminal Investigation, New York (IRS-CI), announced the extradition.
“As alleged, Zelinger was a ruthless leader of a violent criminal syndicate that wreaked havoc throughout Brooklyn with seeming impunity, including an arson in the middle of the night that endangered civilians and firefighters. Zelinger’s underlings were arrested by our law enforcement partners and prosecuted by this Office, and now he will learn the serious consequences for his crimes,” stated United States Attorney Peace.
Mr. Peace thanked the Swiss government for its assistance with Zelinger’s arrest and extradition, the Justice Department’s Office of International Affairs (OIA), and the New York City Fire Department (FDNY) for its investigation of the charged arson and heroic efforts in rescuing residents trapped in an apartment building as a result of that blaze.
“When Viktor Zelinger stepped onto American soil, all the alleged crimes he is charged with became a reality after years on the run. As a prominent leader in the ‘Thieves in Law,’ Zelinger held the decision-making power in New York further enabling organized crime around the world. This extradition demonstrates DEA’s global reach and perseverance, as well as our commitment to the rule of law. I applaud the DEA Strike Force and all of our law enforcement partners on their diligence throughout this investigation,” stated DEA Special Agent-in-Charge Tarentino.
“Today points to just the beginning for Viktor Zelinger as he was returned to the United States to face justice for years of alleged criminal activity. Extortion, narcotics trafficking, assault, and arson—setting fire to an apartment building for vengeance—are just a sample of the charges against Zelinger, the alleged leader of an organized crime mob in Brooklyn. This extradition is true testament to the global reach of IRS Criminal Investigation and our incredible investigative partnerships in the DEA Strikeforce,” stated IRS-CI Special Agent-in-Charge Fattorusso.
As alleged in a superseding indictment, the defendant was the leader of a sophisticated criminal organization that engaged in a wide range of activities traditionally associated with organized crime, including extortion, arson, assault, drug trafficking, illegal gambling, loansharking and wire fraud. The organization also reported to and associated with high-ranking members of Eastern European mafia, known as “воры в зако́ не” (pronounced “vory v zakone”), which literally translates to “Thieves in Law” or “Thieves.”
From approximately 2011 to May 2017, members of Zelinger’s syndicate carried out numerous crimes, including arson and extortion, operated high stakes gambling establishments, trafficked in narcotics, assaulted victims, and facilitated loansharking. Zelinger ordered the arson of an apartment building at 2220 Voorhies Avenue in Sheepshead Bay because it housed a rival high-stakes poker game on the ground floor that competed with the defendant’s illegal gambling spot at 2663 Coney Island Avenue. Specifically, Zelinger directed members of the syndicate to break into the Voorhies Avenue building in the early morning hours of May 2, 2016 and set a fire. The second and third floors of the building contained occupied apartments. As a result of the fire, two building residents and five firefighters were injured, with one firefighter suffering career-ending burns, and the building was destroyed.
The defendant’s Coney Island Avenue gambling spot provided poker players with complimentary food and alcohol and “massage girls,” who gave players back and shoulder rubs during the games. Poker players used narcotics, including cocaine and marijuana supplied by members and associates of the syndicate during the games. Hundreds of thousands of dollars were wagered, with individual players sometimes winning or losing tens of thousands of dollars in a single night.
OIA worked with Swiss law enforcement partners to secure Zelinger’s apprehension and extradition, the latter of which was carried out by the United States Marshals Service. Zelinger was apprehended in Switzerland on an extradition request based on charges pending in the Eastern District of New York. The Federal Department of Justice and Police for the Swiss Confederation approved the extradition on August 31, 2022.
If convicted, Zelinger faces a mandatory minimum sentence of seven years’ imprisonment and a maximum of 40 years’ imprisonment for each of the arson counts; a maximum of 20 years’ imprisonment for each of the racketeering and extortion counts; and a maximum of five years’ imprisonment for each of the gambling counts.
Ten other defendants previously charged in the government’s case either were convicted at trial of or pleaded guilty to racketeering and related crimes.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) Strike Force Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations to disrupt and dismantle the most significant drug traffickers, money launderers, gangs, and transnational criminal organizations.
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:
VIKTOR ZELINGER (also known as “Vitya” and “Vityok”)
Age: 43
St. Gallen, SwitzerlandE.D.N.Y. Docket No. 16-CR-553 (S-4) (BMC)
Defendant Pleads Guilty to Accepting More Than $500,000 in Bribes in Connection with a Multi-Million Dollar New York City Public Works ContractRead the Press Release
Earlier today in federal court in Brooklyn, George Djurasevic pled guilty to bribery, in violation of the Travel Act, admitting that he accepted more than half-a-million dollars in bribe payments in his role as a manager of a company (the “Company”) contracted by the New York City Water Board (NYCWB) to provide sewer and water pipe repair services to New York City homeowners. Djurasevic also pled guilty to tax evasion. Today’s proceeding was held before United States Magistrate Judge Peggy Kuo. When sentenced, Djurasevic faces a total of 10 years in prison.
Breon Peace, United States Attorney for the Eastern District of New York; Michael J. Driscoll, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI); Jocelyn E. Strauber, Commissioner of the New York City Department of Investigation; and Thomas Fattorusso, Special Agent in Charge, Internal Revenue Service Criminal Investigation, New York Field Office (IRS), announced the guilty plea.
“Motivated by greed, Djurasevic flushed away his integrity, accepting bribes and leaving New Yorkers to pay the bill, including when home repairs were not even completed,” stated United States Attorney Breon Peace. “That the process of overseeing city contracts on warranties for costly repairs was corrupted is a betrayal to New York homeowners.”
“As he admitted with today’s plea, Mr. Djurasevic abused his position for personal gain and passed the tab on to New York City taxpayers. Those responsible for helping their fellow citizens obtain basic utility services have a duty to do so in an honest manner, not one motivated by greedy self-interest. The FBI and our partners remain dedicated to bringing those who take bribes at the expense of the public to justice,” stated FBI Assistant Director-in-Charge Driscoll.
DOI Commissioner Jocelyn E. Strauber said, "As today’s guilty plea establishes, instead of providing responsible oversight of City repair projects, the defendant used his status as a City contractor to line his own pockets with hundreds of thousands of dollars in bribe payments. DOI and its federal partners will continue to thwart those who corrupt City processes and victimize New Yorkers."
“Djurasevic lined his pockets with ill-gotten gains and left the people of New York City to pay the tab. He then underpaid his taxes by more than a hundred thousand dollars, revenue used to fund programs for Americans who need it. It is clear that Djurasevic had little regard for the collateral damage of his schemes, and with this guilty plea he is one step closer to justice,” said Thomas M. Fattorusso, Special Agent in Charge for IRS:CI in New York.
According to court documents and facts presented at the guilty plea proceeding, the Company was awarded a multi-million-dollar contract by the NYCWB to sell warranties to New York City homeowners covering repairs to sewer and water pipes. Djurasevic was responsible for overseeing the Company’s sewer and water line repair work carried out by the Company’s plumbing sub-contractors in Staten Island, Queens and Brooklyn.
Djurasevic accepted approximately $500,000 in bribes over five years from a sub-contractor in exchange for, among other things, allowing the sub-contractor to overbill for work performed or to not perform certain repairs to the homeowners’ sewer and water pipes, as well as for his review of the sub-contractor’s determination as to whether repairs were covered by the Company’s warranty. Djurasevic also failed to report his true income to the Internal Revenue Service, which resulted in his failure to pay more than $114,000 in taxes. When sentenced, Djurasevic faces a total of 10 years in prison.
The government’s case is being prosecuted by the office’s Public Integrity Section. Assistant United States Attorneys Philip Pilmar, Robert Polemeni and Dana Rehnquist are in charge of the prosecution.
The Defendant:
GEORGE DJURASEVIC
Age: 54
Armonk, New YorkE.D.N.Y. Docket No. 21-CR-551 (LDH)
Long Island MS-13 Gang Members Face Additional Racketeering Charges, Including for the 2016 Murder of a Central Islip ManRead the Press Release
Today, in federal court in Central Islip, a 29-count superseding indictment was unsealed charging eight members and associates of the violent transnational criminal organization La Mara Salvatrucha, also known as the “MS-13,” with multiple racketeering offenses, including predicate racketeering acts involving murder, attempted murder, conspiracy to commit murder, and related narcotics and firearms offenses. The defendants will be arraigned on a later date before United States District Judge Joan M. Azrack.
Two of the defendants, Kevin Torres, also known as “Inquieto” and “Quieto” (Torres), and Oseas Gonzalez, also known as “Manota” and “Cordero” (Gonzalez), have now been charged with the September 5, 2016 murder of Marcus Bohannon, in Central Islip. Racketeering charges and related offenses were also added against Gonzalez and Victor Lopez-Morales, also known as “Persa” (Lopez-Morales), in connection with the October 14, 2016 murder of Carlos Ventura-Zelaya; and against David Sosa-Guevara, also known as “Risky” (Sosa-Guevara), in connection with a May 23, 2020 assault against a rival gang member at the Nassau County Correctional Facility. Finally, the superseding indictment charges an additional defendant, Kevin Cuevas Del Cid, also known as “Creeper,” “Malcriado,” “Sombra,” “Vinky” and “Dabura” (Del Cid), in connection with his participation in the May 21, 2016 murder of Kerin Pineda, and the October 10, 2016 murder of Javier Castillo.
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 Patrick Ryder, Commissioner, Nassau County Police Department (NCPD), announced the superseding indictment.
“The superseding indictment demonstrates the resolve of this Office and the Long Island Gang Task Force to bring to justice the MS-13 gang members responsible for each and every one of the appalling and senseless murders they have committed in our communities on Long Island and elsewhere,” stated United States Attorney Peace. “It is my hope that these latest charges bring some consolation to the families of the victims.”
“We are making a positive impact in the communities once terrorized by these MS-13 members, but we are seeing signs the gang is attempting to rebuild. Along with our law enforcement partners on our Long Island Gang Task Force, we remain determined to prevent that from happening, but we cannot do it alone. We need the public to remain vigilant and contact us with any information they have to prevent another rash of MS-13 murders,” stated FBI Assistant Director-in-Charge Driscoll.
“These MS-13 members are calculated, manipulative and have no regard for human life,” stated SCPD Commissioner Harrison. “I commend the US Attorney’s Office for the Eastern District of New York and the Long Island Gang Task Force for their relentless pursuit to hold these individuals accountable. The unsealing of this indictment sends a clear message to gang members who think they are enhancing their gang’s reputation by committing heinous crimes—you will be held accountable.”
“These eight new indictments for murder of individuals connected to MS-13 is another clear example of how the Long Island Gang Task Force continues to bring these criminals to justice. The dedicated investigators that comprise the task force from multiple law enforcement agencies are the most experienced and professional in their departments. I would like to thank them for their continued diligence by keeping all of our communities safe,” stated NCPD Commissioner Ryder.
Bohannon murder
As detailed in the superseding indictment, as well as in court filings, Torres and Gonzalez have been charged in connection with the murder of Bohannon, who was shot and killed shortly after midnight on September 5, 2016. Prior to the murder, on the evening of September 4, 2016, members of the Sailors Locos Salvatruchas Westside (Sailors) clique and Hollywood Locos Salvatruchas (Hollywood) clique of the MS-13 met at a house in Central Islip. Torres, who was the leader of the Sailors clique for all of New York, told the other gang members who were gathered at the house, including Gonzalez, a member of the Hollywood clique, that they would be going out that night hunting for rival gang members to kill. The MS-13 members separated into several cars and drove around Central Islip and Brentwood looking for people they could target as rivals. While Gonzalez and his fellow MS-13 members were driving through Central Islip, they observed Bohannon walking along Lowell Avenue. Suspecting that the victim was a member of the rival Bloods gang, Gonzalez and another MS-13 member, both armed with handguns, got out of the vehicle, approached the victim and started shooting. After shooting the victim numerous times, Gonzalez handed his gun to the other MS-13 member who fired several more shots into the victim after his own gun had jammed. Bohannon died from his wounds.
Ventura-Zelaya murder
The superseding indictment also adds charges against Gonzalez and Lopez-Morales in connection with the October 14, 2016 murder of Carlos Ventura-Zelaya, in Roosevelt. Ventura-Zelaya had been marked for death by the MS-13 because of his suspected membership in the rival 18th Street gang. On the day of the murder, Gonzalez observed the victim at a deli in Roosevelt and alerted other members of the Hollywood clique. Gonzalez then picked up several fellow gang members, including Carlos Alfaro, also known as “Russo” (Alfaro), to assist in the murder. The group next drove to the home of Lopez-Morales, who gave them a handgun. After obtaining the weapon, Gonzalez drove the group back in the direction of the deli to look for and kill the victim. Once they spotted Ventura-Zelaya walking on Hudson Street in Roosevelt, Alfaro, who was armed with the gun, and another MS-13 member got out of the car, approached him and Alfaro fired multiple times, striking and killing the victim.
Pineda and Castillo murders
Del Cid is charged in this superseding indictment with the May 21, 2016 murder of Kerin Pineda, the October 10, 2016 murder of Javier Castillo, and conspiring to distribute cocaine and marijuana. Del Cid, who was 16-years’ old at the time of these murders, was initially charged as a juvenile in a sealed proceeding before being transferred to adult status by order of the Court following a juvenile transfer hearing before the United States Circuit Judge Joseph F. Bianco sitting by designation.
Members of the Sailors and Hollywood cliques murdered Pineda after suspecting him to be a member of the 18th Street gang. On the day of the murder, Del Cid, who was a member of the Sailors clique and seeking promotion in the gang, helped to lure Pineda to a secluded wooded area near the Merrick-Freeport border where he and other MS-13 members were lying in wait armed with machetes. When the victim arrived, Del Cid, and other MS-13 members, including Ever Morales-Lopez, also known as “Kyen,” “Lenky” and “Inke,” Jose Jonathan Guevara-Castro, also known as “Suspechoso,” and Gonzalez surrounded and attacked Pineda, stabbing, slashing and hacking him to death with machetes. While this was taking place, Torres and Sosa-Guevara, the leaders of the Sailors and Hollywood cliques, respectively, were driving around the area in two separate cars looking out for any police presence. Lopez-Morales was in the car with Sosa-Guevara. After Pineda was killed the MS-13 members buried him in a hole that had been dug the day before. Pineda’s remains were recovered more than a year later.
Castillo was also killed based on his suspected membership in the 18th Street gang. Del Cid, Torres and more than a half dozen other members of the Sailors clique participated in the Castillo murder. On the night of October 10, 2016, the MS-13 members lured Castillo to Cow Meadow Park in Freeport. They brought him to an isolated marsh area along the water where he was viciously attacked with machetes. After killing Castillo, the MS-13 members dug a hole and buried the body, which was not recovered until one year later. Many of the participants in the Castillo murder were previously charged in a separate case, two of whom have pleaded guilty.
Additional Charged Crimes
Finally, the superseding indictment charges Sosa-Guevara with assaulting a rival gang member while in prison. On May 23, 2020, Sosa-Guevara and several other MS-13 members got into an altercation with an inmate who was a member of the Bloods street gang. Sosa-Guevara and the other MS-13 members armed themselves with sharpened metal objects and attacked the victim beating and stabbing him repeatedly until corrections officers intervened and stopped the assault. The victim sustained multiple lacerations and stab wounds, and later recovered from his injuries.
In the underlying indictment, Torres was charged with the 2016 murder of 19-year-old Oscar Acosta in Brentwood; Lopez-Morales and Gonzalez were charged with the 2016 murder of 19-year-old Josue Amaya-Leonor in the Roosevelt Preserve; and Lopez-Morales and Sosa-Guevara were charged with the 2017 murder of 15-year-old Angel Soler in Roosevelt.
* * * * *
This superseding 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 and associates of the MS-13, a violent, transnational criminal organization. The MS-13’s leadership is based in El Salvador, Honduras, Guatemala and Mexico, but the gang has thousands of members across the United States. With numerous branches, or “cliques,” the MS-13 is the most violent criminal organization on Long Island. Since 2003, hundreds of MS-13 members, including dozens of clique leaders, have been convicted on federal felony charges in the Eastern District of New York. A majority of those MS-13 members have been convicted on federal racketeering charges for participating in murders, attempted murders and assaults. Since 2010, this Office has obtained indictments charging MS-13 members and associates with carrying out more than 60 murders in the district, and has convicted dozens of MS-13 leaders, members and associates in connection with those murders. These prosecutions are the product of investigations led by the FBI’s Long Island Gang Task Force, which is comprised of agents and officers of the FBI, SCPD, Nassau County Police Department, Nassau County Sheriff’s Department, Suffolk County Probation Office, Suffolk County Sheriff’s Office, New York State Police, Hempstead Police Department, Rockville Centre Police Department and New York State Department of Corrections and Community Supervision.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorneys Paul G. Scotti, Justina L. Geraci and Megan E. Farrell are in charge of the prosecution, with assistance from Assistant District Attorney Jared Rosenblatt of the Nassau County District Attorney’s Office.
New Defendant:
KEVIN CUEVAS DEL CID (also known as “Creeper,” “Malcriado,” “Sombra,” “Vinky” and “Dabura”)
Age: 22
Freeport, New YorkPreviously Indicted Defendants Facing Additional Charges:
OSEAS GONZALEZ (also known as “Manota” and “Cordero”)
Age: 30
Charlotte, North CarolinaVICTOR LOPEZ-MORALES (also known as “Persa”)
Age: 34
Roosevelt, New YorkDAVID SOSA-GUEVARA (also known as “Risky”)
Age: 31
Roosevelt, New YorkKEVIN TORRES (also known as “Inquieto” and “Quieto”)
Age: 26
Freeport, New YorkE.D.N.Y. Docket No.: 20-CR-251 (JMA)
U.S. Citizen Extradited from Costa Rica Pleads Guilty to Wire Fraud ChargesRead the Press Release
Earlier today, in federal court in Central Islip, David Butler, a United States citizen, pleaded guilty to wire fraud conspiracy in connection with a scheme to defraud investors in a form of investment known as “binary options.” Butler was arrested in April 2022 in Costa Rica and extradited to the United States on July 14, 2022. The guilty plea was held before United States District Judge Joanna Seybert. When sentenced, Butler faces up to 20 years 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 Thomas M. Fattorusso, Special Agent-in-Charge, Internal Revenue Service-Criminal Investigation, New York (IRS-CI), announced the guilty plea.
“Butler’s guilty plea demonstrates that even when crimes are committed from thousands of miles beyond our country’s borders using the latest computer software, neither the foreign nature nor the sophistication of the scheme will shield fraudsters from being brought to justice in a U.S. courtroom,” stated United States Attorney Peace. “This Office is committed to protecting the investing public from financial scams wherever they occur.”
Mr. Peace thanked the Costa Rican government for its assistance with the arrest and extradition of the defendant.
“David Butler and his accomplices employed a complex, multi-million dollar con to deceive investors by using a manipulated ‘binary option’ system. While investors waited for a surefire return on their investment, Butler pocketed the money to guarantee his own future—until he was caught. Butler now understands that his only genuine guarantee is that he will now face the consequences of his criminal schemes,” said Thomas M. Fattorusso, Special Agent in Charge of IRS:CI in New York.
"As he admitted today, Mr. Butler defrauded his victims for his own personal gain. This case should serve as a reminder to all those who attempt to game our financial systems from afar that the FBI, along with our global law enforcement partners, will bring you back to the United States to face justice in our federal courts," stated Assistant Director-in-Charge Driscoll.
As set forth in court filings, between approximately January 2011 and October 2016, Butler and his co-conspirators operated binary options companies, including SpotFN, Binary FN and Janus Options (Binary Options Companies) from Glen Cove, New York, Costa Rica and Kosovo. The Binary Options Companies promised to pay investors, who were located throughout the United States, a predetermined profit based upon particular outcomes in the markets for securities, currencies and other investments. For example, the Binary Options Companies would offer to pay customers a predetermined profit if a particular security or currency was valued at a particular price on a particular day at a particular time.
To induce investments, Butler and his co-conspirators told investors, in telephone calls and emails, that the predetermined profits that the Binary Options Companies had promised them would be based upon the actual prices of securities, currencies and other investments at particular points in time. Unbeknownst to the investors, however, Butler and his co-conspirators used computer software that allowed the Binary Options Companies to manipulate data associated with the investors’ binary options so that the probability of investors earning a profit would favor the Binary Options Companies. At no time did Butler or any other employee of the Binary Options Companies inform the investors that the binary options that they had purchased from the Binary Options Companies could be manipulated to the investors’ disadvantage. As a result of their deception, Butler and his co-conspirators stole more than $2.9 million from investors.
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 wire fraud, such as the fraud that the defendant committed.
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 Justice Department’s Office of International Affairs worked with law enforcement partners in Costa Rica to secure the arrest and extradition of Butler to the United States.
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 Justice Department’s Office of International Affairs worked with law enforcement partners in Costa Rica to secure the arrest and extradition of Butler to the United States.
The Defendant:
DAVID BUTLER
Age: 52
San Jose, Costa Rica
Pittsburgh, KansasE.D.N.Y. Docket No. 18-CR-680 (JS)
Justice Department Will Return Approximately $686,000 in Forfeited Corruption Proceeds to the Republic of PeruRead the Press Release
BROOKLYN, NY - The U.S. Department of Justice is sharing with the Republic of Peru approximately $686,000 in forfeited criminal proceeds linked to the corruption and bribery of former Peruvian President Alejandro Celestino Toledo Manrique (Toledo) by Odebrecht S.A. (Odebrecht), a Brazil-based global construction conglomerate.
Breon Peace, United States Attorney for the Eastern District of New York, and Kenneth A. Polite Jr., Assistant Attorney General of the Justice Department’s Criminal Division, made the announcement.
“Civil forfeiture serves a critical role in depriving criminals of their ill-gotten gains, regardless of their status, and despite their efforts to conceal the proceeds of their offenses committed abroad,” stated United States Attorney Peace. “This Office and the department will continue to work with their law enforcement partners around the world to recover and return illicit payments that corrupt overseas officials attempt to hide in the United States.”
“This case is an important example of the international cooperation necessary to address corruption abroad where illicit proceeds are brought to the United States,” stated Assistant Attorney General Polite. “The department is committed to doing its part to recover and repatriate such corruption proceeds where appropriate.”
In a civil forfeiture action filed in the U.S. District Court for the Eastern District of New York, United States v. $639,583.07, More Or Less, Formerly On Deposit In Bank Of America Account Number XXXXXXXX1655, With A Beneficiary Identified As The Havenell Trust, And All Funds Traceable Thereto, No. CV 19-5652, the United States alleged that Toledo, while holding public office as President of Peru, solicited millions in bribe payments from Odebrecht in connection with government contracts awarded for construction of the Peru-Brazil Southern Interoceanic Highway (“Southern Interoceanic Highway”), a Peruvian government infrastructure project. Odebrecht subsequently made bribery payments to Toledo through accounts maintained by Toledo’s co-conspirators. Ultimately, approximately $1.2 million of the bribery payments were used by Toledo and his family to purchase real estate in Maryland in 2007 through a scheme designed to hide Toledo’s ownership of the funds and their connection to Odebrecht. The forfeited assets represent the proceeds from the sale of the Maryland real estate, which were further laundered through a trust and bank account controlled by Toledo.
The Federal Bureau of Investigation’s tireless work in this case led to the assets forfeited in the United States being returned to the Republic of Peru. Assistant U.S. Attorney Laura D. Mantell of the U.S. Attorney’s Office for the Eastern District of New York and Trial Attorney Barbara Levy of the Criminal Division’s Money Laundering and Asset Recovery Section handled the civil forfeiture cases. The Justice Department’s Office of International Affairs also provided assistance with the cases.
In support of the U.S. forfeiture actions, the Peruvian government provided extensive and wide-ranging assistance. Most notably, the documentary evidence provided by the Peruvian government included evidence necessary to seize assets located in the United States and substantially contributed to the timely success of the U.S. forfeiture actions.
Justice Department Will Return Approximately $686,000 in Forfeited Corruption Proceeds to the Republic of PeruRead the Press Release
View the Spanish translation of the press release here.
The Department of Justice is sharing approximately $686,000 in forfeited criminal proceeds to the Republic of Peru linked to the corruption and bribery of former Peruvian President Alejandro Celestino Toledo Manrique (Toledo) by Odebrecht S.A. (Odebrecht), a Brazil-based global construction conglomerate.
“This case is an important example of the international cooperation necessary to address corruption abroad where illicit proceeds are brought to the United States,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “The department is committed to doing its part to recover and repatriate such corruption proceeds where appropriate.”
In the civil forfeiture matter filed in the U.S. District Court for the Eastern District of New York, United States v. $639,583.07, More Or Less, Formerly On Deposit In Bank Of America Account Number XXXXXXXX1655, With A Beneficiary Identified As The Havenell Trust, And All Funds Traceable Thereto, No. CV 19-5652, and a related case, the United States alleged that Toledo, who was the president of Peru from approximately 2001 to 2006, solicited millions in bribery payments from Odebrecht while he was in public office in connection with government contracts awarded for construction of the Peru-Brazil Southern Interoceanic Highway (Southern Interoceanic Highway), a Peruvian government infrastructure project. Odebrecht subsequently made bribery payments to Toledo through accounts maintained by Toledo’s co-conspirators. Ultimately, approximately $1.2 million of the bribery payments were used by Toledo and his family to purchase real estate in Maryland in 2007 through a scheme designed to hide Toledo’s ownership of the funds and their connection to Odebrecht. The forfeited assets represent the proceeds from the sale of the Maryland real estate, which were further laundered through a trust and bank account controlled by Toledo.
The FBI investigated the cases leading to the U.S. forfeiture of the assets being returned to the Republic of Peru and served as the seizing agency. Trial Attorney Barbara Levy of the Criminal Division’s Money Laundering and Asset Recovery Section and Assistant U.S. Attorney Laura Mantell for the Eastern District of New York’s Civil Division handled the civil forfeiture cases. The Justice Department’s Office of International Affairs also provided assistance with the cases.
In support of the U.S. forfeiture actions, the Peruvian government provided extensive and wide-ranging assistance. Most notably, the documentary evidence provided by the Peruvian government provided the evidence necessary to seize assets located in the United States and substantially contributed to the timely success of the U.S. forfeiture actions.
“Civil forfeiture serves a critical role in depriving criminals of their ill-gotten gains, regardless of their status, and despite their efforts to conceal the proceeds of their offenses committed abroad,” said U.S. Attorney Breon Peace for the Eastern District of New York. “This office and the department will continue to work with their law enforcement partners around the world to recover and return illicit payments that corrupt overseas officials attempt to hide in the United States.”
The Kleptocracy Asset Recovery Initiative is led by a team of dedicated prosecutors in the Criminal Division’s Money Laundering and Asset Recovery Section, in partnership with federal law enforcement agencies, and often with U.S. Attorneys’ Offices, to forfeit the proceeds of foreign official corruption through criminal and civil forfeiture and, where appropriate, to use those recovered assets to benefit the people harmed by these acts of corruption and abuse of office. In 2015, the FBI formed International Corruption Squads across the country to address national and international implications of foreign corruption. Individuals with information about possible proceeds of foreign corruption located in or laundered through the United States should contact federal law enforcement or send an email to [email protected] (link sends email) or https://tips.fbi.gov/.
El Departamento de Justicia devolverá a la República de Perú aproximadamente $686,000 de las ganancias de corrupción decomisadasRead the Press Release
El Departamento de Justicia de EE.UU. compartirá con la República de Perú aproximadamente $686,000 de las ganancias delictivas decomisadas, vinculadas con la corrupción y el soborno del ex presidente peruano Alejandro Celestino Toledo Manrique (Toledo) por parte de Odebrecht S.A. (Odebrecht), un conglomerado de construcción global con sede en Brasil.
“Este caso es un ejemplo importante de la cooperación internacional necesaria para abordar la corrupción en el extranjero donde las ganancias ilícitas son traídas a los Estados Unidos,” dijo el Fiscal General Auxiliar Kenneth A. Polite, Jr. de la División de lo Penal del Departamento de Justicia. “El departamento está comprometido a hacer su parte para recuperar y repatriar dichas ganancias de la corrupción donde sea apropiado.”
En la causa de decomiso civil presentada en el Tribunal de Distrito de EE.UU. para el Distrito Este de Nueva York, los Estados Unidos c. $639,583.07, más o menos, anteriormente depositados en el número de cuenta XXXXXXXX1655 en el Bank of America, con un beneficiario identificado como El Fideicomiso Havenell, y todos los fondos que pueden ser rastreados al mismo, No. CV 19-5652, y una causa relacionada, los Estados Unidos alegaban que Toledo, quien fue el presidente de Perú aproximadamente desde 2001 hasta 2006, le solicitó a Odebrecht millones en pagos de sobornos, mientras él estaba ejerciendo su cargo, en conexión con los contratos gubernamentales otorgados para la construcción de la Carretera Interoceánica del Sur de Perú-Brasil (Carretera Interoceánica del Sur), un proyecto de infraestructura del gobierno peruano. Posteriormente, Odebrecht le pagó sobornos a Toledo a través de cuentas mantenidas por los coconspiradores de Toledo. Finalmente, aproximadamente $1.2 millones de pagos de sobornos fueron usados por Toledo y su familia para comprar bienes raíces en Maryland en el año 2007, por medio de una estratagema diseñada para esconder que Toledo era el propietario de los fondos y su conexión con Odebrecht. Los bienes decomisados representan las ganancias de la venta de los inmuebles en Maryland, las cuales fueron además lavadas a través de un fideicomiso y una cuenta bancaria controlados por Toledo.
La FBI investigó los casos que llevaron al decomiso de los bienes hecho por los EE.UU. y que están siendo devueltos a la República de Perú y fungió como la agencia de incautación. La Abogada Litigante Barbara Levy de la Sección de Lavado de Dinero y Recuperación de Bienes de la División de lo Penal, y la Fiscal Auxiliar de EE.UU. Laura Mantell de la División Civil de la Oficina del Fiscal de EE.UU. para el Distrito Este de Nueva York, se encargaron de las causas de decomiso civil. La Oficina de Asuntos Internacionales del Departamento de Justicia también dio asistencia con los casos.
En apoyo a las acciones de decomiso de EE.UU., la asistencia proporcionada por el gobierno peruano fue vasta y de gran envergadura. Principalmente, las pruebas documentarias dadas por el gobierno peruano proporcionaron las pruebas necesarias para decomisar los bienes ubicados en los Estados Unidos y contribuyeron considerablemente al éxito oportuno de las acciones de decomiso de EE.UU.
“El decomiso civil cumple un papel fundamental al privar a los delincuentes de sus ganancias ilícitas, sin importar sus estatus, y a pesar de sus esfuerzos para ocultar las ganancias de sus delitos cometidos en el extranjero,” dijo el Fiscal de EE.UU. para el Distrito Este de Nueva York, Breon Peace. “Esta oficina y el departamento continuarán trabajando con sus socios de las fuerzas del orden público alrededor del mundo para recuperar y devolver los pagos ilícitos que funcionarios extranjeros corruptos intentan esconder en los Estados Unidos.”
La Iniciativa de Recuperación de Bienes de la Cleptocracia está liderada por un equipo de fiscales de la Sección de Lavado de Dinero y Recuperación de Bienes de la División de lo Penal, en colaboración con las agencias de control de la ley federal, y a menudo, las fiscalías de EE.UU., dedicados a decomisar las ganancias de la corrupción de los funcionarios extranjeros por medio de decomisos penales y civiles y, donde sea apropiado, usar aquellos bienes recuperados para beneficiar a las personas que fueron perjudicadas por estos actos de corrupción y abuso de poder. En el año 2015, la FBI conformó equipos de corrupción internacional a lo largo del país para abordar las implicaciones nacionales e internacionales de la corrupción extranjera. Los individuos con información acerca de las posibles ganancias de la corrupción extranjera ubicadas en los Estados Unidos, o lavadas en el país, deben contactar a los agentes de control de la ley federal o enviar un correo electrónico a [email protected] (el enlace envía el correo electrónico) o ir a https://tips.fbi.gov/.
Former Owner and Executive at Long Island Mortgage Lender Sentenced to 24 Months' Imprisonment for $8.9 Million FraudRead the Press Release
Earlier today, at the federal courthouse in Central Islip, Edward E. Bohm, formerly the President of Sales and part-owner of mortgage lender Vanguard Funding, LLC (Vanguard), based in Garden City, New York was sentenced by United States District Judge Joanna Seybert to 24 months’ imprisonment in connection with the diversion of more than $8.9 million of warehouse loans that Vanguard had fraudulently obtained purportedly to fund home mortgages and mortgage refinancing. Bohm was also ordered to pay $3,488,615.42 in restitution and $1,500,000 in criminal forfeiture. In February 2019, Bohm pleaded guilty to conspiring to commit wire and bank fraud.
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 Adrienne A. Harris, Superintendent, New York State Department of Financial Services (DFS), announced the sentence.
“With today’s sentence, Edward Bohm has been deservedly punished for his role in a fraudulent scheme that deceived banks that trusted and relied upon him as a business partner. Bohm diverted the loan proceeds to, among other things, pay tens of thousands of dollars in monthly personal credit card expenses and finance the luxury house in which he lived,” stated United States Attorney Peace. “This Office, together with our law enforcement partners, will vigorously investigate and prosecute those who commit fraud to advance their own financial interests at the expense of businesses and residents of our district.”
“Edward Bohm and his associates at Vanguard Funding defrauded the financial institutions that provide critical residential mortgage funding, helping themselves to the short-term loans they falsely claimed were on behalf of consumers,” stated DFS Superintendent Harris. “As New York's financial services regulator, I am proud of DFS’s mortgage banking examiners and criminal investigators who assisted in the investigation that brought Bohm to justice, and who will continue to root out fraud on behalf of all New Yorkers."
Between August 2015 and March 2017, Bohm and his co-conspirators at Vanguard engaged in a scheme in which they obtained more than $8.9 million in short-term loans, referred to as warehouse loans, by falsely representing that the loan proceeds would fund specific mortgages, or refinance specific mortgages, for Vanguard clients. Instead, Bohm and his co-conspirators diverted the funds to pay personal expenses and compensation, and to pay off loans they had previously obtained through false loan applications. Bohm is the third defendant to be sentenced in connection with this scheme. On February 6, 2019, Vanguard Senior Vice President and Chief Financial Officer Edward J. Sypher, Jr., was sentenced to 18 months’ imprisonment and restitution in the amount of $3,488,615.42 following his conviction on conspiracy to commit wire and bank fraud charges. On February 26, 2019, Vanguard Chief Operating Officer Matthew T. Voss was sentenced to 24 months’ imprisonment and $3,488,615.42 restitution following his conviction on conspiracy to commit wire and bank fraud charges.
The government’s case is being prosecuted by Assistant United States Attorney Whitman G.S. Knapp, with assistance from Special Agent Martin Sullivan of the Office’s Business and Securities Fraud Section. Assistant United States Attorney Madeline O’Connor of the Office’s Asset Recovery Section is handling forfeiture matters.
The Defendant:
EDWARD E. BOHM
Age: 44
Smithtown, New YorkE.D.N.Y. Docket No. 18-CR-36 (JS)
Queens Man Pleads Guilty to Attempting to Provide Material Support to ISISRead the Press Release
Awais Chudhary, 22, a naturalized U.S. citizen born in Pakistan and residing in Queens, pleaded guilty today in federal court in Brooklyn to attempting to provide material support to the Islamic State of Iraq and al-Sham (ISIS), a designated foreign terrorist organization.
According to court filings, in August 2019, after watching violent terrorist propaganda videos, Chudhary pledged his allegiance to ISIS’s then-leader Abu Bakr al-Baghdadi and began planning for a knife or bomb attack as a lone wolf ISIS supporter. Chudhary identified targets, including the pedestrian bridges over the Grand Central Parkway and the Flushing Bay Promenade, where he intended to carry out the attacks. Chudhary sought guidance from individuals whom he believed to be ISIS supporters, including what type of knife to use and how to prevent detection from law enforcement by not leaving “traces of finger prints [or] DNA.” Chudhary also sent a screenshot of a document from an ISIS propaganda magazine that included a diagram of the human body depicting where to stab victims with a knife. Chudhary conducted several reconnaissance trips to these locations and made video recordings of the areas he intended to attack.
Chudhary ordered items online that he intended to use to commit a terrorist attack, including a tactical knife, a mask, gloves, and a cellphone chest and head strap – to facilitate his recording of the attack, which he hoped would serve as inspiration to other ISIS supporters. Chudhary was arrested as he attempted to retrieve the items from an online retailer’s locker in Queens.
When sentenced, Chudhary faces up to 20 years in prison.
Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division; U.S. Attorney Breon S. Peace for the Eastern District of New York; and Assistant Director in Charge Michael J. Driscoll of the FBI’s New York Field Office made the announcement.
Assistant U.S. Attorneys Jonathan Algor and Ellen Sise are in charge of the prosecution, with assistance from Trial Attorney Kevin Nunnally of the Department of Justice’s Counterterrorism Section.
Queens Man Pleads Guilty to Attempting to Provide Material Support to ISISRead the Press Release
Awais Chudhary, a naturalized U.S. citizen born in Pakistan, pleaded guilty today in federal court in Brooklyn to attempting to provide material support to the Islamic State of Iraq and al-Sham (ISIS), a designated foreign terrorist organization. Today’s proceeding was held before United States Magistrate Judge Robert M. Levy. When sentenced, Chudhary faces up to 20 years in prison.
Breon S. Peace, United States Attorney for the Eastern District of New York; Matthew G. Olsen, Acting Assistant Attorney General of the Justice Department’s National Security Division; Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI); and Keechant L. Sewell, Commissioner, New York City Police Department (NYPD), announced the guilty plea.
“Awais Chudhary has admitted to planning to carry out a lone wolf terrorist attack in Queens against innocent civilians in an embrace of ISIS’s murderous cause,” stated United States Attorney Peace. “Thanks to the Joint Terrorism Task Force, Chudhary’s efforts to commit deadly violence on behalf of ISIS were thwarted, lives were saved, and he now awaits sentencing for his heinous crime.”
“As he admitted today, Mr. Chudhary planned to bring terror to the people of New York City on behalf of ISIS. The Joint Terrorism Task Force (JTTF), with its tireless vigilance, was able to successfully disrupt his plot, keeping our city safe from this potential lone wolf terrorist. The FBI, along with our partners on the JTTF, remain committed to our highest priority of defending the United States from terrorism,” stated FBI Assistant Director-in-Charge Driscoll.
“Mr. Chudhary has admitted to providing material support, from American soil, to terrorists based overseas,” stated NYPD Commissioner Sewell. “He is a naturalized U.S. citizen who abandoned the country that took him in, and instead pledged allegiance to ISIS and repeatedly and diligently promoted its violent objectives. Clearly, the threat of ISIS-inspired terrorism remains very real, and the members of our FBI-NYPD Joint Terrorism Task Force will never stop working to identify anyone aiding groups that consider our country their sworn enemy.”
According to court filings, in August 2019, after watching violent terrorist propaganda videos, Chudhary pledged his allegiance to ISIS’s then-leader Abu Bakr al-Baghdadi and began planning for a knife or bomb attack as a lone wolf ISIS supporter. Chudhary identified targets, including the pedestrian bridges over the Grand Central Parkway and the Flushing Bay Promenade, where he intended to carry out the attacks. Chudhary sought guidance from individuals whom he believed to be ISIS supporters, including what type of knife to use and how to prevent detection from law enforcement by not leaving “traces of finger prints [or] DNA.” Chudhary also sent a screenshot of a document from an ISIS propaganda magazine that included a diagram of the human body depicting where to stab victims with a knife. Chudhary conducted several reconnaissance trips to these locations and made video recordings of the areas he intended to attack.
Chudhary ordered items online that he intended to use to commit a terrorist attack, including a tactical knife, a mask, gloves, and a cellphone chest and head strap to facilitate his recording of the attack, which he hoped would serve as inspiration to other ISIS supporters. Chudhary was arrested as he attempted to retrieve the items from an online retailer’s locker in Queens.
The government’s case is being handled by the Office’s National Security and Cybercrime Section. Assistant United States Attorneys Jonathan Algor and Ellen Sise are in charge of the prosecution, with assistance from Trial Attorney Kevin Nunnally of the Department of Justice’s Counterterrorism Section.
The Defendant:
AWAIS CHUDHARY
Age: 22
Queens, New YorkE.D.N.Y. Docket No. 20-CR-135 (CBA)
Latvian Individual Extradited for Securities Fraud and Wire Fraud in Cryptocurrency SchemeRead the Press Release
Earlier today, Ivars Auzins, a citizen of Latvia, was extradited to the United States on a six-count indictment charging him with wire fraud, securities fraud, and conspiracies to commit wire fraud and securities fraud in connection with the operation of eight companies that purported to offer, invest in or mine digital assets. Auzins will be arraigned on the indictment tomorrow in federal court in Brooklyn before the Honorable Roanne L. Mann.
Breon Peace, United States Attorney for the Eastern District of New York, and Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI) announced the charges.
“Auzins perpetrated a brazen scheme in which he fleeced investors who funneled millions of dollars into fraudulent cryptocurrency,” stated United States Attorney Peace. “This Office will continue to vigorously investigate and prosecute those who lie and steal from investors, including those like the defendant who operate from abroad.” Mr. Peace thanked the Securities and Exchange Commission, New York Regional Office, for their assistance during the investigation.
As alleged in the indictment, Auzins, using aliases to conceal his identity, operated a series of entities the “Auzins Entities” that advertised through email campaigns, social media and websites dedicated to cryptocurrencies. The Auzins Entities purported to offer valuable investment opportunities, solicited investments and then effectively disappeared. Some of the Auzins Entities – Denaro and Bitroad Limited – purported to raise funds from investors through initial coin offerings (ICOs). Other Auzins Entities – Impressio Estate Ltd., Broi Investments Ltd., also known as Bankroi, ChangePro Pty Ltd., Gemneon Investments Limited and Lycovest Ltd. – purported to be cryptocurrency investment platforms that provided investors with different investment plans and profit rates. Another Auzins Entity – Innovamine – purported to offer investments in mining a number of cryptocurrencies, including Bitcoin and Ether.
As alleged, Auzins and co-conspirators induced investors to invest in the Auzins Entities through a series of material misrepresentations and omissions about the products and services that the Auzins Entities claimed to provide, the profits that investors would earn by investing in the Auzins Entities and the individuals who operated the Auzins Entities. For example, in its marketing materials, Denaro stated that its Chief Executive Officer, “Ron Ramsey,” previously was an executive at a technology company based in Ohio, its Chief Financial Officer, “Jeremy Boker,” obtained a degree from a university in Kentucky, and that it issued debit cards associated with a credit card company based in New York. These representations were false. After soliciting investors in its ICO, Denaro stopped its public advertising campaign, its website became publicly inaccessible, and its investors lost their investments.
Between approximately November 2017 and July 2019, individuals in the United States and elsewhere transferred at least $7 million in digital assets to the Auzins Entities. Shortly after receiving these investments, the Auzins Entities disappeared without providing their promised services.
The charges in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty.
The government’s case is being handled by the Office’s Business and Securities Fraud Section. Assistant United States Attorney John O. Enright is in charge of the prosecution with assistance from Paralegal Jordi Martinez. The Justice Department’s Office of International Affairs worked with law enforcement partners in Latvia to secure the arrest and extradition of Auzins to the United States, and the U.S. Marshals Service carried out the extradition.
The Defendant:
IVARS AUZINS (also known as “Aivars Grauzdins”)
Age: 29
Riga, LatviaE.D.N.Y. Docket No. 21-CR-357 (ERK)
Former JetBlue Employee Pleads Guilty to COVID-19 Loan FraudRead the Press Release
Earlier today, in federal court in Brooklyn, Keily Nunez, a former JetBlue Airways employee, pleaded guilty to conspiracy to commit wire fraud in connection with false statements Nunez made to obtain loans for himself and his coconspirators pursuant to the Economic Injury Disaster Loan (EIDL) program. Nunez and four coconspirators were charged in June 2021. Today’s proceeding was held before United States District Judge Raymond J. Dearie.
In connection with the scheme, five other defendants previously pleaded guilty to conspiracy to commit wire fraud: Orlando Sanay, Michael Pimentel Veloz, Fanny Plasencia, Ramon Osvaldo Pena, and Angel K. Colon. In addition, codefendant Keimi Nunez previously pleaded guilty to wire fraud. When sentenced, all defendants face up to 20 years in prison and have agreed to forfeit the fraudulently obtained loan funds.
Breon Peace, United States Attorney for the Eastern District of New York, and Ricky J. Patel, Special Agent-in-Charge, Homeland Security Investigations, New York (HSI), announced the guilty pleas.
“Each of the defendants admitted to their part in stealing nearly $1.5 million from a government program designed to help struggling small businesses and families survive the pandemic,” stated United States Attorney Peace. “This Office will continue to aggressively prosecute those who seek to enrich themselves by abusing government programs.”
“Nunez and his co-conspirators fleeced the government to the tune of over $1.5 million, taking advantage of programs designed to keep small businesses afloat during a time of unprecedented economic volatility,” said HSI New York Acting Special Agent in Charge Ricky J. Patel. “Since the early days of the COVID-19 global pandemic, HSI has been committed to uncovering pandemic fraud and holding accountable those who take advantage of tragedy to turn a profit.”
The EIDL program 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. As set forth in court filings, between April 2020 and November 2020, the defendants applied for EIDL loans for eleven separate entities. In those applications, the defendants falsely represented the number of employees associated with the entities and misstated the gross revenues for the entities for the 12 months prior to the COVID-19 pandemic.
For example, Nunez submitted a loan application to the Small Business Association (SBA) in April 2020 claiming that Plasencia was the Chief Operating Officer and Nunez was the manager of FI USA Consulting LLC (FI USA). In the application, Nunez falsely claimed that FI USA had 42 employees and gross revenues of $672,137 for the relevant period. The SBA approved FI USA’s application and on July 13, 2020 wired $149,900 to FI USA’s bank account. In contrast to the claims made in the application, New York Department of Labor records showed that FI USA never reported having any employees. Internal Revenue Service records further revealed that FI USA never filed a tax return since its formation in 2017. There is no evidence that the EIDL funds provided to FI USA were used for business purposes.
Based on the defendants’ false representations, the Small Business Administration approved approximately $1.5 million in loans that were deposited into the defendants’ bank accounts.
In addition to making false statements to obtain the loans, the defendants did not use the relief funding for ongoing business expenses as the EIDL program requires. Instead, they withdrew hundreds of thousands of dollars in cash from bank accounts that had received EIDL loan funds.
When sentenced, all defendants face up to 20 years in prison and have agreed to forfeit the fraudulently obtained loan funds.
The case is being handled by the Office’s Business and Securities Fraud Section. Department of Justice Trial Attorney Patrick J. Campbell and Assistant United States Attorney Garen S. Marshall are in charge of the prosecution, Assistant United States Attorney Tanisha Payne of the Office’s Asset Recovery Section is handling forfeiture matters.
The Defendants:
KEILY NUNEZ
Age: 42
Jamaica, New YorkORLANDO SANAY
Age: 41
Elizabeth, New JerseyKEIMI NUNEZ
Age: 42
Woodhaven, New YorkMICHAEL PIMENTEL VELOZ
Age: 41
Garfield, New JerseyFANNY PLASENCIA
Age: 31
Jamaica, New YorkE.D.N.Y. Docket No. 21-CR-496 (RJD)
RAMON OSVALDO PENA
Age: 39
Maywood, New JerseyE.D.N.Y. Docket No. 21-CR-560 (RJD)
ANGEL K. COLON
Age: 39
Garfield, New JerseyE.D.N.Y. Docket No. 22-CR-202 (RJD)
Statement by U.S. Attorney Breon Peace on the Passing of Former U.S. Attorney Andrew J. MaloneyRead the Press Release
“Our Office mourns the passing of Andrew J. Maloney, who nobly served as the 33rd United States Attorney for the Eastern District of New York with a passion for doing justice, a toughness honed as a boxer at West Point and Army Ranger, and supreme confidence in his prosecutors that resulted in amazing work during his tenure. Andy was an extraordinary trial lawyer, mentor, role model, and leader by example. The Office excelled under Andy’s leadership, with landmark organized crime cases that rocked the underpinnings of New York’s Mafia families, corruption prosecutions of a Brooklyn political boss and a state Assembly leader, the indictment of Colombian drug kingpin Pablo Escobar and his top hitman for conspiring to bomb an Avianca jetliner that exploded over Colombia killing 110 people, and the conviction of a prominent corporate lawyer who swindled clients out of millions of dollars. Those are just a few of the monumental cases that are Andy’s legacy. The generation of attorneys who became great prosecutors under Andy’s influence and leaders in the legal community are too numerous to name, but they, too are his legacy. We thank him for his service and immense contribution to making the Eastern District of New York the gold standard for prosecution offices in the United States.”
Nine Members and Associates of Genovese and Bonanno Organized Crime Families Charged with Racketeering and Illegal Gambling OffensesRead the Press Release
Earlier today, in federal court in Brooklyn, two indictments were unsealed charging nine defendants with racketeering, illegal gambling, money laundering conspiracy, obstruction of justice, and related offenses. As alleged, charged with racketeering are: Anthony Pipitone, a captain and soldier in the Bonanno organized crime family of La Cosa Nostra; Vito Pipitone, Bonanno soldier; Agostino Gabriele, Bonanno associate; Carmelo Polito, acting captain in the Genovese organized crime family of La Cosa Nostra; Joseph Macario, Genovese soldier; and Genovese associates Salvatore Rubino and Joseph Rutigliano.
Eight defendants were arrested this morning. Seven are scheduled to be arraigned this afternoon before United States Magistrate Judge James R. Cho. Vito Pipitone was arrested in Wellington, Florida and will make his initial appearance this afternoon in federal court in Miami. Joseph Rutigliano 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 Anne T. Donnelly, District Attorney, Nassau County District Attorney’s Office, announced the charges.
“Today’s arrests of members from two La Cosa Nostra crime families demonstrate that the Mafia continues to pollute our communities with illegal gambling, extortion, and violence while using our financial system in service to their criminal schemes,” stated United States Attorney Peace. “The defendants tried to hide their criminal activity by operating from behind the cover of a coffee bar, a soccer club, and a shoe repair shop, but our Office and our law enforcement partners exposed their illegal operations. Even more disturbing is the shameful conduct of a detective who betrayed his oath of office and the honest men and women of the Nassau County Police Department when he allegedly aligned himself with criminals.”
Mr. Peace thanked the New York City Police Department, the Waterfront Commission of New York Harbor, and the United States Department of Labor, Office of the Inspector General for their assistance in the investigation.
“Current members of the five families demonstrate every day they are not averse to working together to further their illicit schemes, using the same tired methods to squeeze money from their victims. Enlisting alleged assistance from a member of law enforcement also proves they are willing to do all they can to hide their illegal behavior. Our active investigations show the mafia refuses to learn from history, and accept that at some point they will face justice for their crimes,” stated Assistant Director-in-Charge Driscoll.
“This case is further proof that organized crime is alive and well in our communities,” stated District Attorney Donnelly. “These violent criminal organizations operated secret underground gambling parlors in local commercial establishments, generating substantial amounts of money in back rooms while families unknowingly shopped and ate mere feet away. These Mafia figures were assisted by a sworn member of law enforcement, who helped these gambling dens to thrive by offering police raids on competing clubs. The Mafia has brought untold violence and extortion into our neighborhoods for decades, even threatening the life of an individual as part of this case. This indictment sends a strong message that we are committed to rooting out corruption and organized crime. We thank the EDNY, the FBI and the Nassau County Police Department DA Squad for their partnership in helping to keep our communities safe.”
As detailed in the indictments and court filings, members of the Genovese and Bonanno organized crime families operated several illegal gambling operations in the Eastern District of New York. Beginning in at least May 2012, the Genovese and Bonanno families jointly operated a lucrative illegal gambling operation in Lynbrook, New York called the Gran Caffe. The profits earned through this and other gambling locations generated substantial revenue, which was then laundered through cash transfers to the defendants and through “kicking up” to the crime families’ leaders. Rutigliano and Rubino collected the proceeds for the Genovese crime family and distributed them up to higher- ranking members, including Polito and Macario. At times, Gabriele collected the proceeds for the Bonanno crime family and distributed them up to higher-ranking members of that family, including Anthony Pipitone and Vito Pipitone.
In addition to the Gran Caffe, the Genovese crime family—through Polito, Macario, Rutigliano, Rubino and others—operated illegal gambling parlors at establishments called Sal’s Shoe Repair and the Centro Calcio Italiano Club. The Bonanno crime family—through Anthony Pipitone, Vito Pipitone, Gabriele and others—operated illegal gambling parlors at establishments called the Soccer Club, La Nazionale Soccer Club and Glendale Sports Club.
Carmelo Polito, an alleged acting captain in the Genovese crime family, is also charged with operating an illegal online gambling scheme in which bets were placed on sporting events through a website called “PGWLines.” In connection with his operation of PGWLines, Polito is charged with attempting to extort an individual who lost several thousand dollars in bets he placed through the website. For example, in an October 2019 call concerning a delinquent debtor whose “face” Polito had previously threatened to “break,” Polito instructed another individual to relay a new message to the debtor: “Tell him I’m going to put him under the f------g bridge.”
As also detailed in the indictments and other court filings, Hector Rosario, a detective with the Nassau County Police Department, accepted money from the Bonanno crime family in exchange for offering to arrange police raids of competing gambling locations. Rosario is charged with obstructing a grand jury investigation by the United States Attorney’s Office for the Eastern District of New York and lying to the FBI.
The illegal gambling locations include:
- La Nazionale Soccer Club, 80-13 Myrtle Avenue, Queens
- Glendale Sports Club, 74-03 Myrtle Avenue, Queens
- Gran Caffe, 31 Hempstead Avenue, Lynbrook
- Soccer Club, 129 Rockaway Avenue, Valley Stream
- Sal’s Shoe Repair, 41 Merrick Avenue, Merrick
- Centro Calcio Italiano Club, 1007 Little East Neck Road, West Babylon
The charges in the indictments are allegations, and the defendants are presumed innocent unless and until proven guilty.
The government’s case is being handled by the Office’s Organized Crime and Gangs Section. Assistant United States Attorneys Tanya Hajjar, Drew Rolle, Anna Karamigios and Special Assistant United States Attorney Abigail Margulies are in charge of the prosecution.
The Defendants:
JOSEPH MACARIO (also known as “Joe Fish”)
Age: 68
West Islip, New YorkCARMELO POLITO (also known as “Carmine Polito”)
Age: 63
Whitestone, New YorkSALVATORE RUBINO (also known as “Sal the Shoemaker”)
Age: 58
Bethpage, New YorkJOSEPH RUTIGLIANO (also known as “Joe Box”)
Age: 63
Commack, New YorkMARK FEUER
Age: 59
Oceanside, New YorkAGOSTINO GABRIELE
Age: 35
Glendale, New YorkANTHONY PIPITONE (also known as “Little Anthony”)
Age: 49
Deer Park, New YorkVITO PIPITONE
Age: 40
Wellington, FloridaHECTOR ROSARIO
Age: 49
Mineola, New YorkE.D.N.Y. Docket Nos. 22-CR-355 (ENV); 22-CR-356 (ENV)
Long Island Chiropractor Pleads Guilty to $1 Million Health Care FraudRead the Press Release
Earlier today, in federal court in Central Islip, Peter Adamczak, a licensed chiropractor operating in East Meadow, Long Island, pleaded guilty to health care fraud in connection with billing a private insurance company over $1 million for acupuncture services that were never performed. The proceeding was held before United States Magistrate Judge Arlene R. Lindsay.
Breon Peace, United States Attorney for the Eastern District of New York and Michael Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Lucy Lang, Inspector General of New York State, announced the guilty plea.
“Adamczak bilked an insurance company for acupuncture services that he never performed, brazenly lying in order to line his own pockets with money that he did not earn,” stated United States Attorney Peace. “As a health care professional, Adamczak was required to uphold the highest standards of honesty and integrity, and failed both miserably. This Office will continue to hold healthcare providers accountable for fraud and abuse.”
“False medical claims jeopardize the wellbeing of sick and injured New Yorkers and drive-up costs for all of us,” said New York State Inspector General Lucy Lang. “Thank you to our colleagues at the U.S. Attorney’s Office for the Eastern District of New York for their partnership in protecting the integrity of our healthcare system.” The IG thanked Deputy Inspector General, Long Island Office Jean Carsey, Director of Audit for the Downstate Office Giovaani Liotine, Investigative Auditor Angelus Okeke, and Investigator Mario Rubino for their work on the investigation.
According to court filings and facts presented during the plea proceeding, from 2016 to 2020, Adamczak submitted over $1 million in fraudulent claims for reimbursement to a private insurance company. Adamczak was not licensed to perform acupuncture, but claimed that the services were rendered by an unaffiliated acupuncturist who leased office space from the defendant. Neither the unaffiliated acupuncturist nor Adamczak performed the billed acupuncture services. Based on Adamczak’s fraudulent claims, the private insurance company paid approximately $994,838.16 in reimbursements to its beneficiaries who, in turn, delivered the payments to Adamczak. In one case, a beneficiary who was a relative of Adamczak deposited the reimbursement checks to their personal bank account and kept the funds.
Assistant United States Attorney John Vagelatos 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:
Peter Adamczak
Age: 65
Huntington, New YorkE.D.N.Y. Docket No. 22-CR-287 (JS)
Platinum Partners Portfolio Manager Daniel Small Convicted of Defrauding Bondholders in a Multi-Million Dollar SchemeRead the Press Release
Daniel Small, a former portfolio manager for Platinum Partners L.P. (Platinum), was convicted today by a federal jury in Brooklyn on charges of securities fraud and securities fraud conspiracy for his role in defrauding the bondholders of Black Elk Energy (Black Elk), an oil company that was one of Platinum’s largest assets, by rigging a consent solicitation vote. The verdict followed a two-week trial before United States District Court Judge Brian M. Cogan.
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 Daniel Brubaker, Inspector-in-Charge, United States Postal Inspection Service, New York Division (USPIS), announced the verdict.
"Small and his co-conspirators engaged in a scheme to deceive the bondholders of Black Elk by rigging the vote to enrich themselves,” stated United States Attorney Breon Peace. “Today’s verdict demonstrates this Office’s dedication to prosecuting those who refuse to play by the rules and defraud others. This Office will pursue justice without fear or favor no matter the obstacles.”
Mr. Peace thanked the Securities and Exchange Commission, New York Regional Office for their significant cooperation and assistance during the investigation.
"Mr. Small and his co-conspirators, fueled by their own self-interest and avarice, purposely cheated their investors. Today the jury held Mr. Small accountable for his actions, another step in the process of getting justice for his victims. The FBI and our partners remain committed to holding actors who defraud and manipulate investors responsible for their crimes so the public maintains its confidence in the integrity of our financial markets,” stated FBI Assistant Director-in-Charge Driscoll.
USPIS Inspector in Charge Daniel B. Brubaker said: “Daniel Small, former Managing Director of Platinum Partners, conspired in an elaborate scheme to fraudulently divert millions in proceeds from bond investors to Platinum Partners. This scheme was artfully concealed through what appeared to be a series of legitimate events. Nonetheless, it was an outright multi-million dollar theft from innocent victims. The United States Postal Inspection Service has a long and proven history of investigating egregious Wall Street Security Frauds such as these. Small’s conviction represents our dedication to help maintain an honest and fair trading environment across all publicly traded companies."
Platinum was a New York City-based hedge fund founded in 2003. The evidence at trial established that between approximately November 2011 and December 2016, Small, along with co-conspirators including Mark Nordlicht, the founder and Chief Investment Officer of Platinum, and David Levy, the co-Chief Investment Officer of Platinum, orchestrated a fraudulent scheme to defraud third-party holders of Black Elk’s publicly traded bonds (the bondholders) by diverting to Platinum the proceeds from the sale of the vast majority of Black Elk’s most lucrative oil fields even though the bondholders had priority over Platinum’s equity interests.
To execute this scheme, in early 2014, Small, Nordlicht, Levy and others caused Platinum to secretly purchase Black Elk bonds on the open market and gain control of $98 million of the $150 million of outstanding bonds. The bonds were then transferred through a number of related entities to conceal their ownership and control by Platinum. Small, Nordlicht, Levy and their co-conspirators then rigged a consent solicitation vote to amend the Black Elk indenture so that the proceeds from the sale of Black Elk’s best assets would be paid to the preferred equity – which was held by Platinum and Platinum insiders – ahead of the other bondholders. Notably, non-Platinum related bondholders overwhelmingly voted against changing the indenture; one testified that bondholders would never knowingly give up being “as senior as possible in the capital structure” for “nothing” in return, which he characterized as an “irrational choice.”
After the rigged vote was complete, Small, Nordlicht, Levy and their co-conspirators took millions of dollars from the asset sale for themselves, family members and friends, including approximately $7 million to Nordlicht’s father, approximately $250,000 to Levy, approximately $100,000 to Small and approximately $2 million to the brother of another co-conspirator.
In July 2019, Nordlicht and Levy were convicted on the same charges by a federal jury following a two-month trial. Both defendants 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 Attorneys David Pitluck, Lauren Elbert and Nicholas Axelrod are in charge of the prosecution.
The Defendants:
DANIEL SMALL
Age: 53
New York, New YorkMARK NORDLICHT
Age: 54
New Rochelle, New YorkDAVID LEVY
Age: 37
New York, New YorkE.D.N.Y. Docket No. 16-CR-640 (BMC)
MS-13 Gang Member Fugitive Extradited from El Salvador to Face Racketeering and Murder Charges on Long IslandRead the Press Release
José Jonathan Guevara-Castro, also known as “Suspechoso” (Guevara-Castro), an alleged member of the violent transnational criminal organization La Mara Salvatrucha, also known as the “MS-13,” and a fugitive from justice, was extradited yesterday from El Salvador to the United States. Guevara-Castro, who was arrested in Acajutla, Sonsonate, El Salvador on August 13, 2020, has been detained pending his extradition to the United States, which was formally authorized by the Supreme Court of Justice of El Salvador on July 12, 2022. Guevara-Castro was originally charged with the murder of 20-year-old Kerin Pineda in an indictment returned by a federal grand jury in Central Islip on July 9, 2020. Guevara-Castro 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, John J. Durham, Director, Joint Task Force Vulcan (JTFV), and Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the arrest and extradition.
“The extradition of Guevara-Castro demonstrates the resolve of this Office and law enforcement to bring to justice all gang members who commit violent crimes in our district no matter where in the world they may run and try to hide,” stated United States Attorney Peace. “I hope the return of the defendant to a federal courtroom on Long Island where he will be held accountable for a vicious murder will bring some measure of closure to the family of the young victim.”
Mr. Peace expressed his appreciation to the investigators and analysts of El Salvador’s Policía Nacional Civil (PNC) Centro Antipandillas Transnacional (CAT) unit, who are assigned to the Transnational Anti-Gang (TAG) Unit, for their outstanding collaboration in locating and apprehending this fugitive. Additionally, Mr. Peace thanked the members of the FBI’s Long Island Gang Task Force and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), as well as the International Criminal Police Organization (INTERPOL), and the Department of Justice’s Office of International Affairs (OIA), for their partnership in this case.
Guevara-Castro is presently charged in a 24-count indictment, along with seven other MS-13 members and associates, with racketeering offenses, murder and narcotics trafficking. Guevara-Castro specifically has been charged with participating in the murder of Pineda, who was believed to be a member of the 18th Street gang, one of MS-13’s principal rivals. Pineda’s murder was committed as a joint venture between two different subgroups, or “cliques,” of the MS-13 operating on Long Island: the Hollywood Locos Salvatruchas (Hollywood) clique, of which Guevara-Castro was an alleged member; and the Sailors Locos Salvatruchas Westside (Sailors) clique. On May 21, 2016, MS-13 members, armed with machetes, lured Pineda to a secluded wooded area near the Merrick-Freeport border, where he was surrounded and violently attacked. Pineda’s machete-mutilated corpse was then buried in a hole that had been dug the day before. Pineda’s corpse was recovered more than one year later.
The charges in the indictment are allegations, and the defendant and his co-defendants are presumed innocent unless and until proven guilty. If convicted, Guevara-Castro faces up to life in prison.
This extradition is the latest accomplishment in a series of federal prosecutions by the USAO-EDNY targeting members and associates of the MS-13, a violent, transnational criminal organization. The MS-13’s leadership is based in El Salvador, Honduras, Guatemala and Mexico, but the gang has thousands of members across the United States. With numerous branches, or “cliques,” the MS-13 is the most violent criminal organization on Long Island. Since 2003, hundreds of MS-13 members, including dozens of clique leaders, have been convicted on federal felony charges in the Eastern District of New York. A majority of those MS-13 members have been convicted on federal racketeering charges for participating in murders, attempted murders, and assaults. Since 2010, this Office has obtained indictments charging MS-13 members and associates with carrying out more than 60 murders in the district, and has convicted dozens of MS-13 leaders, members, and associates in connection with those murders. These prosecutions are the product of investigations led by the FBI’s Long Island Gang Task Force, which is comprised of agents and officers of the FBI, SCPD, Nassau County Police Department, Nassau County Sheriff’s Department, Suffolk County Probation Office, Suffolk County Sheriff’s Office, New York State Police, Hempstead Police Department, Rockville Centre Police Department, and New York State Department of Corrections and Community Supervision.
This investigation was carried out in partnership with Joint Task Force Vulcan (JTFV). The principal purpose of JTFV is to coordinate and lead the efforts of the Justice Department and U.S. law enforcement agencies against MS-13 in order to dismantle the group.
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, with assistance from Assistant District Attorney Jared Rosenblatt of the Nassau County District Attorney’s Office.
The Defendant:
JOSE JONATHAN GUEVARA-CASTRO (also known as “Suspechoso”)
Age: 27
Acajutla, Sonsonate, El Salvador; formerly of Roosevelt, New York, and Annapolis, MarylandE.D.N.Y. Docket No. 20-CR-251 (JMA)
Defendant Sentenced to 11 Years' Imprisonment for Attempting to Provide Material Support to ISIS and Al Nusra FrontRead the Press Release
Earlier today, in federal court in Brooklyn, Dilshod Khusanov, a citizen of Uzbekistan and a resident of Chicago, Illinois, was sentenced by United States District Judge William F. Kuntz II to 11 years’ imprisonment for attempting to provide material support to a designated foreign terrorist organization, the Islamic State of Iraq and al-Sham (ISIS) and Al-Nusra Front (ANF). Khusanov pleaded guilty to the charge in October 2021. When Khusanov completes his sentence, he will be deported to his native Uzbekistan.
Breon Peace, United States Attorney for the Eastern District of New York; Matthew G. Olsen, Acting Assistant Attorney General of the Justice Department’s National Security Division; Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI); and Keechant Sewell, Commissioner, New York City Police Department (NYPD), announced the sentence.
“With today’s sentence, Khusanov has been punished for providing blood money to support violent jihad in Syria and Iraq,” stated United States Attorney Peace. “The significant punishment will deter those who are considering aiding foreign fighters determined to join terrorist organizations like ISIS and Al-Nusra Front. Prosecuting those who assist terrorist organizations, here and abroad, will always be a priority of this Office.”
“Today’s sentencing further exemplifies the need to remain vigilant in our ongoing fight against international terrorism,” said NYPD Commissioner Sewell. “Our nation’s security begins with the dedicated local, state, and federal law-enforcement officers who are committed to keeping us safe, and we will hold anyone who funds violence against the American people fully accountable. I want to thank the U.S. Attorney’s Office for the Eastern District of New York, the Justice Department’s National Security Division, the FBI’s New York Field Office, and everyone else involved in this critical case for their outstanding work.”
According to court filings, in 2014 and 2015, Khusanov was a member of a financial support network that raised money for financing travel to Syria by individuals wishing to join and fight on behalf of ISIS and ANF. That network’s participants referred to it as “chayxona,” an Uzbek word which translates to the “tea house” or “tea party.”
Khusanov encouraged individuals to travel to Syria to wage violent jihad, or holy war. For example, on September 28, 2014, he urged co-conspirator Akmal Zakirov to engage in jihad: “I hope that the only [reason] that is preventing you from jihad is some mistakes and flaws that are occurring among the mujahedeen [freedom fighters] you witness or hear about.” Khusanov explained that it would be better to help those fighters, rather than criticize them.
Later in 2014, two Brooklyn residents, Abdurasul Juraboev and Akhror Saidakhmetov, began planning to travel to Syria to fight for ISIS. A group of individuals in a domestic network based in New York and elsewhere, including Khusanov, worked together to raise and contribute money to help fund that trip to Syria. In February 2015, Abror Habibov, Zakirov, Azizjon Rakhmatov, and Dilkhayot Kasimov discussed providing money to support Saidakhmetov’s travel and expenses in Syria. Rakhmatov and Zakirov also agreed to solicit money from others to fund Saidakhmetov’s travel. Zakirov contacted the defendant, then-based in Illinois, and asked him to contribute money for Saidakhmetov’s travel and to ask another individual to contribute money as well. Khusanov agreed and arranged for money to be deposited in Zakirov’s bank account before Saidakhmetov’s scheduled departure. Saidakhmetov was arrested in February 2015 at John F. Kennedy International Airport, as he boarded a plane bound for Istanbul, Turkey, a common transit point for foreign fighters bound for Syria.
Khusanov is the sixth of seven defendants convicted and sentenced in two prosecutions related to the plot. Juraboev, Saidakhmetov, and Kasimov each were sentenced to 15 years’ imprisonment; Rakhmatov was sentenced to 12 1/2 years’ imprisonment; and Zakirov was sentenced to time served after approximately seven-and-a-half years’ imprisonment. Habibov is awaiting sentencing.
The government’s case is being handled by the Office’s National Security & Cybercrime Section. Assistant United States Attorneys Douglas M. Pravda, Alexander A. Solomon, J. Matthew Haggans, and Jonathan E. Algor are in charge of the prosecution, with assistance provided by Trial Attorney Steven Ward of the National Security Division’s Counterterrorism Section.
The Defendant:
DILSHOD KHUSANOV
Age: 36
Chicago, IllinoisE.D.N.Y. Docket No. 17-CR-475 (WFK)
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E.D.N.Y. Docket No. 15-CR-95 (WFK)New York Man Sentenced to Prison for Role in Identity Theft ConspiracyRead the Press Release
A Springfield Gardens man was sentenced to five years in prison yesterday for conspiring to commit aggravated identity theft and aiding in the preparation of false tax returns for his transportation business.
According to court documents and evidence presented at trial, Afolabi Ajelero worked at Kaybamz, a tax preparation business, during tax season from approximately 2012 through 2016. Ajelero conspired with Hakeem Bamgbala, the owner of the business, and others to prepare and file tax returns seeking fraudulent refunds in the names of individuals whose identities had been acquired unlawfully. Bamgbala then forged the names of the taxpayers on the refund checks and provided the checks to Michael Campbell and other co-conspirators to be cashed at banks. Among other roles, Ajelero was responsible for supplying his Electronic Filing Identification Number (EFIN) for use on each fraudulent return and helping fabricate tax paperwork to satisfy a third party that audited some of the returns filed by Kaybamz.
In addition to participating in the identity theft conspiracy, Ajelero also owned Mo-Betta Ventures, a transportation business that provided airport shuttle services in the New York City metropolitan area. From 2011 through 2016, Ajelero aided the filing of false corporate tax returns for Mo-Betta Ventures. Each of these returns included false items, including exaggerated fuel tax credits or deductions intended only for off-highway vehicles such as farm equipment.
In addition to the term of imprisonment, U.S. District Judge William F. Kuntz II ordered Ajelero to serve two years of supervised release and to pay approximately $45,000 in restitution to the United States.
Bamgbala previously pleaded guilty to 18 counts of wire fraud, 22 counts of aggravated identity theft, one count of conspiring to commit aggravated identity theft, and one count of aiding and assisting the filing of a false tax return. Bamgbala died before he could be sentenced. Campbell pleaded guilty to one count of conspiracy to commit aggravated identity theft. He is scheduled to be sentenced on August 19.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Breon S. Peace for the Eastern District of New York made the announcement.
Trial Attorneys Mark McDonald and Eric B. Powers of the Tax Division prosecuted the case.
Defendant Sentenced to 48 Months in Prison for Defrauding American Express of More Than $4.7 MillionRead the Press Release
Earlier today, in federal court in Brooklyn, Jasminder Singh was sentenced by United States District Judge Carol Bagley Amon to 48 months’ imprisonment for bank fraud and money laundering related to Singh’s scheme to defraud American Express of more than $4.7 million. Singh was also ordered to pay restitution to American Express in the amount of $4,651,845.08 and to forfeit $3,018,602.22. Singh was convicted of the charges on April 27, 2022 by a federal jury following a one-week trial.
Breon Peace, United States Attorney for the Eastern District of New York, Kenneth A. Polite Jr. of the Justice Department’s Criminal Division, and Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the sentence.
“Jasminder Singh fraudulently used American Express credit cards to purchase millions of dollars’ worth of Apple products, which he sold to enrich himself, and then tried to leave American Express holding the bag,” stated United States Attorney Breon Peace. “Today’s sentence sends a message to those, like the defendant, who defraud financial institutions, that there are serious consequences when their lies and deceit catch up to them and the bill comes due.”
According to court filings and the evidence presented at trial, Singh used four business entities that he created and controlled, and 10 American Express credit cards in those entities’ names, to purchase thousands of Apple iPhones and other Apple products that he then sold overseas for millions of dollars. Between November 2017 and December 2019, Singh misrepresented to American Express his inability to repay more than $4.7 million in charges incurred from his purchase of Apple products in order to secure additional credit, and used a series of financial transactions to conceal the money he obtained from selling the purchased iPhones. Singh used the proceeds from his fraudulent scheme to pay for personal expenses and purchase luxury items, including a $1.3 million home in Fremont, California paid for in cash.
Assistant United States Attorney Michael W. Gibaldi and Trial Attorney Patrick J. Campbell of the Criminal Division’s Fraud Section are in charge of the prosecution. Assistant United States Attorney Tanisha R. Payne of the Office’s Asset Recovery Section is handling forfeiture matters.
The Defendant:
JASMINDER SINGH
Age: 45
Fremont, CaliforniaE.D.N.Y. Docket No. 21-CR-397 (CBA)
Bloods Gang Member Sentenced to 30 Years in Prison for His Role in a 2012 Murder in Baldwin Harbor and Multiple Violent CrimesRead the Press Release
Earlier today, in federal court in Central Islip, Richard Michel, also known as “G-Light” and “Gangsta Light,” the leader of the Red Lane Gorillas “set” of the Bloods street gang, was sentenced by United States District Judge Joanna Seybert to 30 years’ imprisonment for racketeering and predicate acts including the October 2011 kidnapping and assault of a rival gang member and another man in Hempstead, the July 15, 2012 murder of Anthony Richard in Baldwin Harbor, and the September 2016 attempted murder of a disloyal Bloods gang member in Uniondale. Michel pleaded guilty to the charges in December 2021 along with co-defendant Dylan Cruz.
Breon Peace, United States Attorney for the Eastern District of New York, announced the sentence.
“For the murder, kidnapping, and assaults of Michel’s victims, the pain to their loved ones, and the violence Michel brought to our communities, today’s sentence is justice served,” stated United States Attorney Peace. “As a result of the hard work of our prosecutors and law enforcement partners, Michel’s gang has been dismantled. And, we will not rest until all violent criminal enterprises on Long Island are eliminated.”
Mr. Peace thanked the Federal Bureau of Investigation, New York Field Office, the Nassau County Police Department, and the New York City Police Department for their outstanding investigative work on the case.
Michel, along with other members of the Red Lane Gorillas, engaged in a violent gang war against rival gangs, including the Crips and the 5-9 Brims set of the Bloods, in Nassau County and Brooklyn. To maintain his leadership position in the gang and to keep rival gangs in fear, Michel engaged in extreme violence against anyone suspected of disloyalty or being disrespectful of his gang.
According to court filings and statements made by the defendant at his guilty plea, Michel, among other crimes, admitted his role in the murder of Richard, an individual that he wrongly suspected of assisting the Crips in the 2010 murder of a member of their gang. Cruz and Michel, together with fellow gang members and associates located the victim, obtained a firearm, and followed the victim’s vehicle to Baldwin Harbor. Cruz, who was Michel’s top lieutenant, exited the vehicle he was travelling in, walked up to the victim’s car and fired approximately 15 shots into the vehicle at close range, killing Richard and wounding his passenger. Michel also admitted to the October 13, 2011 gunpoint kidnapping and assault of someone he perceived as a disloyal gang member and another man in Hempstead, New York. Further, Michel admitted pulling the trigger in the September 9, 2016 attempted murder of a fellow Bloods gang member whom he suspected of disloyalty, in which the victim was lured from Brooklyn to Uniondale under the guise of a marijuana deal. Once at an isolated location in Uniondale, Michel shot the man in the back of the neck and left him in the street to die. The man survived his wounds. In June 2022, Cruz was sentenced to 25 years in prison.
This case was brought as part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. As part of the program, U.S. Attorneys’ Offices work in partnership with federal, state, local and tribal law enforcement and their local communities to develop effective, locally based strategies to reduce violent crime.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorneys Nicole Boeckmann, Michael Maffei and Oren Gleich are in charge of the prosecution.
The Defendant:
RiCHARD MICHEL (also known as “G-Light” and “Gangsta Light”)
Age: 41
Brooklyn, New YorkE.D.N.Y. Docket Nos. 18-CR-664 (S-1) (JS)
Convicted Felon Sentenced to 10 Years in Prison for Possessing Ammunition in Connection with Non-Fatal Shooting Outside the Queensbridge HousesRead the Press Release
Earlier today, in federal court in Brooklyn, Tyreik Jackson, also known as “Marlo,” a member of the Makk Balla Brims Bloods street gang, the King of Queens street gang and a narcotics-trafficking crew that controlled the vicinity of 8th Street and Astoria Boulevard in Queens, was sentenced by United States District Judge Eric Komitee to 10 years’ imprisonment for being a convicted felon in possession of ammunition. Jackson possessed the ammunition in connection with shooting an individual over a perceived drug-dealing dispute. Jackson pleaded guilty to the charge in February 2022.
Breon Peace, United States Attorney for the Eastern District of New York, announced the sentence.
“The defendant, who has previously been convicted of a violent felony crime, has demonstrated that he shows no respect for the law or human life. With today’s sentence, he is deservedly removed from the community,” stated United States Attorney Peace. “Fortunately, in this case, the victim survived. I commend the prosecutors in our Office and our law enforcement partners who are working tirelessly to deter gun violence bringing cases with serious federal consequences against violent individuals like the defendant.”
Mr. Peace expressed his appreciation to the Federal Bureau of Investigation, New York Field Office, the New York City Police Department (NYPD), and the Queens County District Attorney’s Office for their outstanding work and assistance in this investigation and prosecution.
As set forth in court filings, prior to the shooting, members of Jackson’s narcotics-trafficking crew had threatened the victim multiple times, claiming that he had sold marijuana in their territory. Shortly before midnight on September 26, 2020, Jackson was standing outside a nightclub in Long Island City when he saw the victim ride past him on a scooter. Jackson was picked up by two associates and driven to the Queensbridge Houses, where both Jackson and the victim had lived as youths. Jackson walked up to the victim and fired three shots, wounding him in the elbow, hip, and buttocks. Jackson’s street name was “Marlo,” adopted from the fictional drug kingpin Marlo Stanfield in the HBO show “The Wire.” Shell casings from the bullets fired by Jackson were recovered by NYPD detectives at the scene of the shooting.
Jackson was previously convicted in 2008 of felony assault arising from separate attacks in which he struck one victim in the head with a baseball bat and restrained a second victim who was stabbed by another individual.
This case was brought in conjunction with the FBI’s Safe Streets Task Force, 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, and the NYPD’s 114th Precinct. As part of the program, U.S. Attorneys’ Offices work in partnership with federal, state, local and tribal law enforcement and their local communities to develop effective, locally based strategies to reduce violent crime.
The government’s case is being handled by the Office’s Organized Crime and Gangs Section. Assistant United States Attorneys Emily Dean and Benjamin Weintraub are in charge of the prosecution.
The Defendant:
TYREIK JACKSON (also known as “Marlo”)
Age: 36
Queens, New YorkE.D.N.Y. Docket No. 20-CR-476 (EK)
Brooklyn Man Arrested for Distributing FentanylRead the Press Release
A criminal complaint was unsealed today in federal court in the Eastern District of New York charging Caleb Apolinaris, also known as “Kappa,” with distributing fentanyl in Brooklyn, New York, including to a 25-year-old individual who died of a drug-related overdose hours later at his residence. Apolinaris was arrested earlier today in Brooklyn, New York, and his initial appearance is scheduled for this afternoon before United States Magistrate Judge Marcia M. Henry.
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 arrest and charges.
“As alleged, Apolinaris sold the fatal fentanyl that directly led to another individual joining the rapidly growing list of victims of overdose deaths,” stated United States Attorney Peace. “This Office will continue to prosecute traffickers dealing lethal drugs to protect our community and bring justice for the victims and families devastated by the opioid scourge.”
“Fentanyl is a federally controlled substance, administered by professionals in medical fields, because of its potency and mortal consequences if abused. It is not a recreational drug to be passed around at parties. Thousands of people are dying because drug dealers are unapologetically pushing fentanyl laced products. We will arrest these criminals, one by one if need be, and do all we can to end the cycle of dependence and death,” stated FBI Assistant Director-in-Charge Driscoll.
“Illegal drugs, especially ones as potently deadly as fentanyl, have no place in our city,” said NYPD Commissioner Sewell. “And any person who displays the recklessness to deal these drugs, and the negligent depravity to put lives at risk for profit, must be held fully accountable. I want to thank the U.S. Attorney for the Eastern District, the FBI’s New York Field Office, and all of our investigators for their outstanding work on this case.”
As alleged in the complaint, on April 12, 2022, Apolinaris sold at least 11 glassine envelopes of fentanyl and a fentanyl/para-fluorofentanyl mixture to a 25-year-old individual (Victim-1), who died of a drug-related overdose hours later at his residence in Bay Ridge, Brooklyn. Ten glassine envelopes containing fentanyl and a fentanyl/para-fluorofentanyl mixture were found near Victim-1’s body in his wallet. Law enforcement officers obtained video from surveillance cameras outside Apolinaris’s residence and surrounding neighborhood from the night of April 11, 2022 and early morning of April 12, 2022. The video showed Victim-1 meeting with Apolinaris to purchase the narcotics. A search of Victim-1’s phone revealed text messages between Apolinaris and Victim-1. In the hours preceding the transaction, Victim-1 texted Apolinaris, “Aight be up for me bro please I’m getting a taxi straight to urs should be like a hour at most.” Apolinaris responded, “I got you 100%.”
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 complaint are allegations, and the defendant is presumed innocent unless and until proven guilty. If convicted, Apolinaris faces a mandatory minimum sentence of 20 years’ imprisonment and up to life in prison.
This case was brought as part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. As part of the program, U.S. Attorneys’ Offices work in partnership with federal, state, local and tribal law enforcement and their local communities to develop effective, locally based strategies to reduce violent crime.
The government’s case is being handled by the Office’s General Crimes Section. Assistant United States Attorney John O. Enright is in charge of the prosecution.
The Defendant:
CALEB APOLINARIS (also known as “Kappa” and “CalebKappaNewDogfood”)
Age: 25
Brooklyn, New YorkE.D.N.Y. Docket No. 22-MJ-811
Long Island Man Sentenced to 30 Months in Prison for Mailing Threatening Letters to LGBTQ+ Affiliated IndividualsRead the Press Release
Earlier today, in federal court in Central Islip, United States District Judge Joanna Seybert sentenced Robert Fehring to 30 months in prison for mailing more than 60 letters to LGBTQ+ affiliated individuals, organizations and businesses, many of which contained threats to kill, shoot, and bomb the recipients. Fehring pleaded guilty to the charge in February 2022.
Breon Peace, United States Attorney for the Eastern District of New York and Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Rodney K. Harrison, Commissioner, Suffolk County Police Department (SCPD) announced the sentence.
“There is no room for hate in the Eastern District of New York. Today’s sentence makes clear that threats to kill and commit acts of violence against the LGBTQ+ community will be met with significant punishment,” stated United States Attorney Peace. “We will use the full power of our office to bring to justice those who threaten to kill or hurt people because of who they are, and to ensure everyone in our district is able to live authentically, safely and in peace.”
United States Attorney Peace also expressed his gratitude to the Suffolk County District Attorney’s Office for their assistance in the investigation.
“Robert Fehring made heinous threats against members of the LGBTQ+ community in locations throughout New York, including Suffolk County, for nearly eight years,” Suffolk County Police Commissioner Harrison said. “Thanks to the tireless efforts of our department’s Hate Crimes Unit detectives and the diligent work of our law enforcement partners, Fehring is being held accountable for his crimes. This sentence reiterates that hate and intolerance have no place in Suffolk County.”
As set forth in the court filings and today’s proceeding, from at least 2013 to 2021, Fehring sent letters threatening violence to individuals associated with the LGBTQ+ community. In those letters, Fehring threatened to, among other things, use firearms and explosives against the recipients. Two such letters threatened that there would be an attack on an LGBTQ+ event in Huntington, New York that would be like the 2013 Boston Marathon bombing. Another letter threatened that radio-controlled explosives would be planted at a beach club in Long Beach, New York that had hosted a LGBTQ+ event. In another letter sent in June 2018, Fehring threatened the operators of a water ferry service from Sayville to Fire Island, New York that they should “screen everyone coming on board with a metal detector” and that “a thorough search of your boats would be in order.”
Fehring also sent a threatening letter to the owners of the Stonewall Inn in Manhattan and an African American-owned barbershop affiliated with the LGTBQ+ community in Brooklyn. The letter to the Stonewall Inn stated, “we will blow up/burn your establishments down. We will shoot those who frequent your dens of [expletives].” The letter to the barbershop purported to be from “People Who Hate Gays ... and In Particular [n-word] Gays and stated, “your shop is the perfect place for a bombing ... or beating the scum that frequents your den of [expletive] into a bloody pool of steaming flesh.”
On November 18, 2021, the FBI Civil Rights Squad and the New York Joint Terrorism Task Force executed a search warrant at Fehring’s home in Bayport, New York, and recovered copies of letters containing threats, supplies used to mail threatening letters, 20 LGBTQ+ Pride flags that were stolen from flagpoles in Sayville, New York in July 2021, and reconnaissance-style photographs from the Eisenhower Park Pride event. The FBI also recovered electronic devices owned by Fehring that contained internet searches for Fehring’s victims and related LGBTQ+ affiliated events and businesses. Law enforcement officers also recovered from Fehring’s residence two loaded shotguns, hundreds of rounds of ammunition, two stun guns, and a stamped envelope addressed to an LGBTQ+ affiliated attorney containing the remains of a dead bird.
At Fehring’s sentencing hearing, six victims addressed the Court and described the fear that Fehring’s threats instilled in them.
The government’s case is being handled by the Office’s National Security and Cybercrime Section, Civil Rights Section, and Long Island Criminal Division. Assistant United States Attorneys Francisco J. Navarro, Rachel A. Bennek, and Andrew P. Wenzel are in charge of the prosecution.
The Defendant:
ROBERT FEHRING
Age: 74
Bayport, New YorkE.D.N.Y. Docket No. 22-CR-059
Former Correctional Officer Charged with Smuggling Contraband into Brooklyn Federal JailRead the Press Release
A criminal complaint was unsealed today in federal court in Brooklyn charging Jeremy Monk, a former correctional officer employed by the United States Bureau of Prisons (BOP), with attempting to provide contraband to prison inmates at the Metropolitan Detention Center (MDC) in Brooklyn. Monk was arrested this morning, and his initial appearance is scheduled for this afternoon before United States Magistrate Judge Vera M. Scanlon.
Breon Peace, United States Attorney for the Eastern District of New York, Ryan T. Geach, Special Agent-in-Charge, United States Department of Justice, Office of Inspector General (DOJ-OIG), and Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the charges.
“As alleged, the defendant violated his oath and duty as a correctional officer by smuggling narcotics into the Metropolitan Detention Center,” stated United States Attorney Peace. “This Office, together with our law enforcement partners, are committed to maintaining the safety for incarcerated individuals and BOP employees, and will prosecute those who act as conduits for contraband into a correctional facility.”
“Monk allegedly smuggled drugs into the prison, creating a dangerous environment for his fellow correctional officers, inmates, and the public. The Department of Justice Office of the Inspector General will continue to investigate and uncover these kinds of bribery schemes,” stated DOJ-OIG Special Agent-in-Charge Geach.
“As alleged, Mr. Monk put both his fellow corrections officers and the Metropolitan Detention Center’s inmate population at risk by engaging in a scheme to smuggle contraband, including illegal drugs, into the facility. As law enforcement officials, we all take an oath to uphold the law and protect our nation. Mr. Monk chose to violate that oath, and he will now face justice for the crimes we allege he committed,” FBI Special Agent-in-Charge Driscoll.
As alleged in the complaint, Monk worked as a correctional officer at the MDC from May 2020 until he resigned on April 18, 2022. Three days before he resigned, on April 15, 2022, MDC staff learned that Monk was supposed to be paid $10,000 by inmates to smuggle contraband, specifically drugs, alcohol, and tobacco, into the MDC and leave it in a staff restroom. That afternoon, Monk went to the staff restroom consistent with the information MDC staff received. After Monk left the restroom, MDC staff secured and searched the location and found more than nine ounces of marijuana hidden on a shelf under cleaning materials. Prior to reporting to work on April 18, 2022, Monk called the MDC’s Human Resources department and stated that he wanted to immediately resign. When asked why he was resigning, the defendant stated, in sum and substance, because of “some stupid investigation.”
As alleged, Monk had also smuggled contraband into the MDC on prior occasions. On December 5, 2020, the MDC staff members conducted a search of the cell of an incarcerated individual (Inmate-1) due to the odor of marijuana coming from his cell. Although no marijuana was found, the MDC staff recovered a cellular telephone, which is also contraband in a correctional facility. Financial records show that three days before the MDC staff recovered the cellular telephone, an associate of Inmate‑1 attempted to pay Monk for smuggling the contraband via Cash App seven times in amounts ranging from $750 to $4,000. All seven transactions were blocked by Cash App.
The charges in the complaint are allegations, and the defendant is presumed innocent unless and until proven guilty. If convicted, Monk faces a maximum sentence of five years’ imprisonment.
The government’s case is being handled by the Office’s Public Integrity Section. Assistant United States Attorneys Olatokunbo Olaniyan and Philip Pilmar are in charge of the prosecution.
The Defendant:
JEREMY MONK
Age: 31
Brooklyn, New YorkE.D.N.Y. Docket No. 22-MJ-805
"Boiler Room" Operator Pleads Guilty to International Securities Fraud ConspiracyRead the Press Release
Earlier today, in federal court in Brooklyn, Lee Cohen, a citizen of the United Kingdom, pleaded guilty to conspiracy to commit securities fraud for his role in a scheme to manipulate the price and trading volume of HD View, 360, Inc. (HDVW), a publicly traded company that purported to distribute and install security surveillance systems. In connection with his plea, Cohen also admitted that he agreed to launder money that was purported to be the proceeds of similar securities fraud schemes. The proceeding was held before United States District Judge Kiyo A. Matsumoto. When sentenced, Cohen faces up to five years in prison.
Breon Peace, United States Attorney for the Eastern District of New York, and Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI) announced the guilty plea.
“Cohen ran his scam from a ‘boiler room’ more than 8,000 miles from the federal courtroom in Brooklyn where he pleaded guilty today to defrauding investors, proving that distance will never protect criminals from the reach of our Office’s outstanding attorneys and FBI Special Agents who brought the defendant to justice,” stated United States Attorney Peace.
Mr. Peace thanked the United States Securities and Exchange Commission, New York Regional Office and Washington, D.C. Office, for their assistance in the case.
As set forth in court filings, Cohen operated a self-described “boiler room” in the Philippines. Cohen and his co-conspirators used the boiler room to defraud investors and potential investors in HDVW by inducing investors to buy HDVW shares at particular prices. At the same time, Cohen coordinated with a co-conspirator who controlled the majority of HDVW’s shares, then sold the shares for a profit. During the scheme, over 1,000 investors purchased shares of HDVW and lost more than $1.2 million.
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 Attorneys David Gopstein and Nicholas J. Moscow are in charge on the prosecution.
The Defendant:
LEE COHEN
Age: 52
Manila, PhilippinesE.D.N.Y. Docket No. 22-CR-209 (KAM)
Chicago Man Pleads Guilty to Stalking R. Kelly VictimRead the Press Release
Earlier today, in federal court in Brooklyn, Donnell Russell pleaded guilty to interstate stalking for his participation in a scheme to harass, intimidate, and cause substantial emotional distress to Jane Doe, a victim in the racketeering case against Robert Sylvester Kelly, also known as “R. Kelly,” and Jane Doe’s mother. The proceeding was held before United States District Judge Ann M. Donnelly. When sentenced, Russell faces a maximum sentence of five years’ imprisonment.
Breon Peace, United States Attorney for the Eastern District of New York, and Ricky J. Patel, Acting Special Agent-in-Charge, Homeland Security Investigations, New York (HSI), announced the guilty plea.
“Russell used threats, harassment and intimidation in a deliberate effort to silence one of R. Kelly’s victims and prevent her voice from being heard,” stated United States Attorney Peace. “When his initial effort failed, he continued his vile campaign by sending threatening messages to Jane Doe and her mother, and publishing explicit photos of the victim on the internet before and after Kelly was indicted. As this prosecution makes clear, the defendant’s conduct was not only reprehensible, but it was also criminal and will not be tolerated.”
“Through the use of intimidation tactics, Russell repeatedly and purposefully worked to silence ‘Jane Doe’ from revealing the emotional and physical trauma inflicted on her by R Kelly and his associates. Despite multiple threats, Russell ultimately failed in his efforts and will now face the consequences of his despicable behavior,” said HSI Acting Special Agent-in-Charge Patel. “HSI will continue to work together with our partners to support and empower survivors of abuse and exploitation to come forward and speak out against their abusers.”
Between November 2018 and February 2020, Russell, a self-described manager, advisor and friend of Kelly, used the mail, phones and the internet to harass and intimidate Jane Doe, a victim in the Kelly case, and her mother after Jane Doe filed a civil lawsuit against R. Kelly. Specifically, Russell threatened to reveal sexually explicit photographs of Jane Doe and to publicly reveal her sexual history if she did not withdraw her lawsuit against Kelly and “cease her participation and association with the organizers” of a “negative campaign” against Kelly. In November 2018, Russell caused a letter, with attachments, purportedly written by Kelly to be mailed to Jane Doe’s Brooklyn-based lawyer at the time. The attachments included cropped nude photographs of Jane Doe with the following text: “the next two pictures have been cropped for the sake of not exposing her extremities to the world, yet!!!” In December 2018, Russell, using his alias “Colon Dunn,” sent a series of text messages to Jane Doe and her mother, which contained the same photographs of Jane Doe, and stating, “Just a sample. We will seek criminal charges. You’ve been warned,” as well as “Publishing soon” and “[T]his is Colon.”
On January 3, 2019, Russell sent additional text messages to Jane Doe and her mother, stating, “Pull the plug or you will be exposed.” On January 6, 2019, Russell, using the Colon Dunn alias, created a Facebook Page named “Surviving Lies,” a play on the title of Lifetime’s “Surviving R Kelly” documentary, and posted screen shots of text messages between Kelly and Jane Doe, which contained the same sexually explicit photographs of Jane Doe. In late January 2020, Russell appeared on two live interviews with “vloggers” supporting Kelly discussing Kelly’s legal troubles, which were streamed live on the internet via YouTube. Russell again displayed the same sexually explicit photographs of Jane Doe and broadcast them publicly over the internet.
The government’s case is being handled by the Office’s Civil Rights Section. Assistant United States Attorneys Nadia I. Shihata and Anna Karamigios are in charge of the prosecution.
The Defendant:
DONNELL RUSSELL (also known as “Don Russell” and “Colon Dunn”)
Age: 47
Chicago, ILE.D.N.Y. Docket No. 20-CR-427 (AMD)
Brooklyn Man Sentenced to 18 Years in Prison for Drive-By Shooting That Wounded A Pregnant BystanderRead the Press Release
Earlier today, in federal court in Brooklyn, Steven Bynum was sentenced by United States District Judge Ann M. Donnelly to 18 years in prison for possessing, brandishing, and discharging a firearm in furtherance of a drug distribution conspiracy. On September 10, 2017, Bynum shot and wounded a pregnant innocent bystander in the head leaving the victim severely disabled after firing a handgun into a group of people. Bynum pleaded guilty to the charges in February 2020.
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 sentence.
“Today’s sentence holds the defendant accountable for his callous and wanton disregard for human life and safety in opening fire and shooting a pregnant bystander in the head, causing her permanent paralysis,” stated United States Attorney Peace. “This Office and its law enforcement partners are deeply committed to protecting residents in our communities from the dangers of senseless gun violence and to ensuring that defendants like Bynum are prosecuted and punished for their heinous acts.”
“Today’s sentencing of a violent criminal shows the steadfast commitment by ATF to identify and bring to justice those who commit any act of violence in our communities” stated ATF Special Agent-in-Charge Devito. “The defendant’s vile actions and disregard for human life left a mother paralyzed and threatened the life of her unborn child. Thanks to the efforts of the ATF/NYPD Sparta Task Force, this defendant will no longer be able to commit willful acts of violence and prey upon the citizens we have sworn to protect.”
“Gun violence has absolutely no place in New York City,” stated NYPD Commissioner Sewell. “The NYPD, working in tandem with our law enforcement partners, is relentless in its pursuit of the very few people in our city who are responsible for the majority of the violence. Today’s sentencing sends a strong message that this behavior will never be tolerated in New York City, and that anyone reckless enough to pick up and use an illegal gun here will face the full consequences of their actions. I commend the NYPD investigators, the members of ATF, and the U.S. Attorney for the Eastern District of New York – whose collective efforts resulted in this arrest, conviction, and meaningful prison sentence.”
According to court documents, in early 2017, Bynum stole drugs from a rival drug dealer (Individual 1) and then distributed those drugs at the Kingsborough Houses in Crown Heights. In June 2017, Individual 1 retaliated against Bynum for the theft by assaulting Bynum near the Kingsborough Houses. On September 10, 2017, Bynum drove a rental car to the vicinity of 2070 Dean Street in East New York to retaliate against Individual 1. Bynum located Individual 1 standing with a group of people, including a pregnant bystander (“Victim”) who lived in the neighborhood. Bynum circled the block, slowed his vehicle, and fired multiple shots from an illegally possessed 9mm handgun at the group. Bynum’s shots missed Individual 1 and instead hit the five-month pregnant Victim twice in the head. The Victim underwent multiple surgeries and spent over two months in the hospital recovering from her wounds. As a result of the shooting, the Victim is permanently paralyzed on her right side, has cognitive and speaking impediments, and suffers from other serious medical issues. The Victim’s baby was born two months’ prematurely but survived.
This case was brought as part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. As part of the program, U.S. Attorneys’ Offices work in partnership with federal, state, local and tribal law enforcement and their local communities to develop effective, locally based strategies to reduce violent crime.
Assistant United States Attorney Francisco J. Navarro is in charge of the prosecution.
The Defendant:
STEVEN BYNUM (also known as “Nitty”)
Age: 40
Brooklyn, New YorkE.D.N.Y. Docket No. 19-CR-255 (AMD)
Registered Sex Offender Convicted of Attempting to Sexually Exploit Minors and Distributing Child PornographyRead the Press Release
Earlier today, in federal court in Brooklyn, Davis Burgos-Collazo was convicted by a jury of attempting to sexually exploit five children, two counts of distributing child pornography, accessing child pornography with intent to view it, and committing a felony sexual offense involving minors while being a registered sex offender. The verdict was returned after a one-week trial before United States District Judge Pamela K. Chen. When sentenced, the defendant faces up to life in prison.
Breon Peace, United States Attorney for the Eastern District of New York, and Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the verdict.
“The defendant, a registered sex offender who deviously portrayed himself as a modeling scout to lure victims, repeatedly victimized minors without regard for the profound harm he was causing them. With today’s verdict, he now faces the consequences necessary to protect the community from this serial predator,” stated United States Attorney Peace. “I urge parents and caregivers to remain vigilant about the importance of educating our children about the dangers of communicating online with strangers.”
Mr. Peace thanked the FBI-NYPD Child Exploitation and Human Trafficking Task Force for their work on the case.
“Burgos’s conviction illustrates how vulnerable our children are to sexual predators. The heartbreaking pleas from one of his victims to be left alone should shock parents and guardians. Please talk with children about the dangers they can face online, and tell them they can ask for help if they face a similar situation,” stated FBI Assistant Director-in-Charge Driscoll.
As proven at trial, in 2020, Burgos-Collazo used at least 26 Instagram accounts to attempt to sexually exploit children as young as nine-years-old. The defendant enticed the victims by pretending to be a modeling scout and by using accounts with names like “future models” and “preteen beauty pics.” In addition, after the defendant had coerced one victim into performing live sex acts for him on Instagram and she pleaded with him to leave her alone, he threatened to post a naked picture of the 10-year-old child online for her friends to see. The FBI recovered over 100 photos and videos of child pornography on the defendant’s phone. Burgos committed the crimes while he was a registered sex offender. In March 2006, he was convicted of raping a seven-year-old minor and attempting to sexually assault two other minors, ages 9 and 11.
This prosecution is part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov
The government’s case is being prosecuted by Assistant United States Attorneys Rachel A. Bennek and John O. Enright, with assistance from paralegal specialists Anna November and Shivani Parshad.
The Defendant:
DAVIS BURGOS-COLLAZO
Age: 43
Jamaica, New YorkE.D.N.Y. Docket No. 20-CR-492 (PKC)
牡蛎湾居民被指控参与 2700 万美元的投资欺诈骗局并向外籍人士出售结识知名美国政要的渠道Read the Press Release
今天，布鲁克林联邦法院公布了一份刑事控告书，指控 Sherry Xue Li 和 Lianbo Wang 犯有电信欺诈共谋罪、洗钱共谋罪以及因妨碍联邦选举委员会 (FEC) 实行竞选财务法而犯有共谋欺诈美国政府罪。Li 和 Wang 均是归化美国公民，今天早些时候在纽约牡蛎湾被捕，他们首次出庭安排在纽约布鲁克林的美国联邦法院，由美国治安法官 Ramon E. Reyes, Jr. 法官审判。
纽约东区美国联邦检察官 Breon Peace；联邦调查局 (FBI) 纽约办事处副主任 Michael J. Driscoll；美国国土安全部纽约国土安全局 (HSI) 代理特别行动署署长 Ricky J. Patel；以及美国国家税务局纽约刑事调查局 (IRS-CI) 特别行动署署长 Thomas Fattorusso 宣布了逮捕和 指控。
美国联邦检察官 Peace 表示：“正如指控，被告通过谎报他们的虚构项目得到了知名政要的支持，诱使受害者投资一个欺诈性骗局。被告以自己的名义向政治竞选活动非法提供外国资金，并邀请外籍人士作为他们的客人参加筹资活动，进而通过出售结识美国政要的渠道，实施了这一欺诈行为。本办公室致力于保护我们的民主进程不受非法外国势力的影响，保护投资者不会被掠夺性欺诈者骗取资金。”
美国联邦检察官 Peace 感谢美国公民和移民服务局在调查中提供的协助。
“我们指控 Li 和 Wang 承诺为一些投资者提供绿卡以及结识政治人物的渠道，并承诺为所有投资者提供分红。数千万美元的资金流入我国，这些资金来自投资者和虚假捐赠者，而他们希望自己的资金能够获得回报。然而，只有一个承诺得以兑现，那就是结识政治要人。“外国资金破坏了我们的移民和民主进程，因此我们必须尽一切努力保护移民和民主进程。”
“Li 和 Wang 被指控针对外籍人士实施大规模、多层次的欺诈骗局，包括虚假房地产投资、承诺付款利益、兜售结识美国政要的渠道，以及为竞选活动提供非法捐款。 滥用投资者签证程序促成了这一令人震惊的涉嫌欺诈案。”纽约国土安全局 (HSI) 代理特别行动署署长 Patel 表示。“HSI 将与我们的合作伙伴携手，继续坚定地监测美国签证和旅行系统是否存在外国行为人恶意滥用的迹象，并且我们将继续积极调查针对美国入境程序性框架的攻击。”
“据指控，Li 和 Wang 诈骗了受害投资者数百万美元，然后用这些非法所得过着奢侈的生活，并与知名政要“交往”。正是通过与执法部门的合作与协作，我们才能够捣毁这个多层次的欺诈骗局，确保涉嫌的犯案人现在为其罪行接受审判。”IRS 纽约 CI 特别行动署署长 Thomas M. Fattorusso 说道。
欺诈投资者的骗局
如刑事控告书中所指控，Li 和 Wang 精心策划了一场近十年的骗局，欺骗投资者投资一个虚构的项目，声称该项目在纽约沙利文县开发、建设和运营一家名为“汤普森教育中心 (Thompson Education Center)”（简称 TEC 项目）的私立教育机构。被告通过虚假陈述 TEC 项目取得的进展及其获得政府官员的支持，包括向投资者和潜在投资者发送内含 TEC 项目总裁 Li 与知名美国政要合影的宣传材料，来招揽受害投资者，其中许多受害投资者是居住在美国境外的外籍人士。许多外国受害者被说服投资 TEC 项目，原因之一是被告得到虚假保证，投资者若投资 50 万美元将保证他们通过美国国土安全部美国公民和移民服务局 (USCIS) 管理的 EB-5 投资签证计划在美国合法永久居留。
正如指控，Li、Wang 和其他同谋成员通过 Li 创建的多家公司名下的银行账户转移骗取投资者的资金，以此方式转走这些资金。一旦资金进入这些账户，Li 和 Wang 就会用这些资金支付大量的个人开支，包括服装和饰品、珠宝、住房、度假旅行、高档餐饮以及捐给知名政要的政治捐款。Li 和 Wang 实际花费在 TEC 项目上的投资本金只是用来编造和延续一个谎言，即 TEC 项目是一个实际在建的可行开发项目。例如，Li 和 Wang 雇佣了承包商、工程师和其他专业人员来绘制建筑图纸和制定建筑计划，并在开发场地上或周围开展少量工作，Li 和 Wang 向潜在投资者展示这些工作，以误导他们相信 TEC 项目有完成的实际可能性并且有兑现共谋者向投资者承诺的投资回报的实际可能性。
截至 2022 年 7 月，150 多位投资者为 TEC 项目投资至少 2700 万美元，其中大约 1650 万美元来自 EB-5 投资者，嫌犯承诺为他们提供绿卡作为投资回报，还有大约 1100 万美元来自股票投资者，嫌犯向他们承诺将会进行 IPO。截至 2022 年 3 月，Li、Wang 及其共谋者挪用和洗白至少 200 万美元的 TEC 项目投资者资金。在同一时期，Li、Wang 及其共谋者将 250 万美元的投资者资金用于各种个人花费，但没有明确商业目的，Li 或 Wang 并没有向美国国家税务局申报这些收入。到目前为止，TEC 项目的 EB-5 投资者并未获得临时或永久绿卡，TEC 项目也没有进行 IPO 或在任何证券交易所上市。
出售结识美国政要的渠道
为了进一步推进他们的骗局，Li 和 Wang 还冒充外籍人士的“虚假捐赠者”，为支持美国政要和政治委员会的竞选活动提供非法捐款。此外，Li 和 Wang 还向外籍人士承诺，可以通过付费参加美国政治活动和结识美国政要。Li 和 Wang 利用从外籍人士骗取的资金作为政治捐款的资金，并谎称自己和其他美国公民是这些资金的捐赠者，这违反了《联邦选举竞选法》(FECA) 和 FEC 的法规。在某些情况下，Li 和 Wang 利用 TEC 投资者的投资资金进行政治捐款，并利用这些捐款获得参与政治活动的权利，在这些活动中，Li 和 Wang 与当选官员合影。然后，Li 和 Wang 利用这些合影作为一种营销工具，吸引外籍人士对 TEC 项目进行投资。
例如，如刑事控告书中所指控，Li 和 Wang 向十二名外籍人士每人收取了 9.3 万美元的入场费，以便与时任美国总统一起参加 2017 年 6 月 28 日的筹资活动（2017 年 6 月 28 日筹资活动）。Li 和 Wang 利用从外籍人士骗取的资金，以自己的名义非法向联合筹资委员会举办的 2017 年 6 月 28 日筹资活动提供 60 万美元的政治捐款，其中 Li 提供 27.05 万美元，Wang 提供 32.95 万美元。Li、Wang 及其外籍人士客人参加了 2017 年 6 月 28 日的筹资活动，并与时任美国总统合影。之后 Li 和 Wang 利用 Li 在筹资活动上与该总统的合影为 TEC 招揽投资。
* * *
FBI 鼓励任何人士如果知悉刑事控告书中相关指控的信息或认为自己是受害者，则可通过 tips.fbi.gov 网站上的互联网电子举报表格或通过拨打 FBI 的举报热线 1-800-CALL-FBI (225-5324) 与 FBI 联系。
刑事控告书中的指控仅仅是指控，除非证明有罪，否则假定 被告是无罪。
该政府案件正在由本办公室的国家安全和网络犯罪科以及本办公室的公共廉政科处理。美国助理 联邦检察官Robert T. Polemeni、Ian C. Richardson 和 Joshua Hafetz 在律师助理专员 Magdalena St. Surin 的协助下负责本次起诉。本办公室资产追回科的美国联邦助理检察官 Claire S. Kedeshian 负责没收资产。
被告:
SHERRY XUE LI
年龄：50
纽约，牡蛎湾Lianbo Wang，又名“Mike Wang”
年龄： 45
纽约，牡蛎湾E.D.N.Y.备审案件编号 22-MJ-756
Oyster Bay Residents Charged with $27 Million Investment Fraud Scheme and Selling Foreign Nationals Access to Prominent U.S. PoliticiansRead the Press Release
A criminal complaint was unsealed today in Brooklyn federal court charging Sherry Xue Li and Lianbo Wang with wire fraud conspiracy, money laundering conspiracy and conspiracy to defraud the United States by obstructing the Federal Election Commission’s (FEC) administration of campaign finance laws. Li and Wang, both naturalized U.S. citizens, were arrested earlier today in Oyster Bay, New York, and their initial appearance is scheduled for this afternoon before United States Magistrate Judge Ramon E. Reyes, Jr. at the United States Courthouse in Brooklyn, New York.
Breon Peace, United States Attorney for the Eastern District of New York; Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation (FBI), New York Field Office; Ricky J. Patel, Acting Special Agent-in-Charge, Department of Homeland Security, Homeland Security Investigations (HSI), New York; and Thomas Fattorusso, Special Agent-in-Charge, Internal Revenue Service-Criminal Investigation, New York (IRS-CI) announced the arrests and charges.
“As alleged, the defendants enticed their victims to invest in a fraudulent scheme aided by misleadingly claiming that their fictitious project had the support of prominent politicians,” stated United States Attorney Peace. “The defendants were able to perpetrate this fraud by then selling access to U.S. politicians by unlawfully contributing foreign money to political campaigns in their own names and bringing foreign nationals as their guests to fundraising events. This Office is committed to protecting our democratic process from those who would expose it to unlawful foreign influence, and investors from the predatory fraudsters who would steal their money.”
United States Attorney Peace thanked the U.S. Citizenship and Immigration Services for its assistance in the investigation.
"We allege Li and Wang promised investors green cards, access to political figures, and dividends on their money. Tens of millions of dollars came in from investors and straw donors, who expected their money would bear fruit. However, only one promise came to fruition, the access to political power. Foreign money pollutes our immigration and democratic processes, and we must do all we can to protect them," stated FBI Assistant Director-in-Charge Driscoll.
Li and Wang are alleged to have perpetrated a massive, multi-layered fraud scheme targeting foreign nationals ranging from a sham real estate investment, promised benefits for payment, the solicitation for access to U.S. politicians, to making illegal donations for campaigns. The staggering scope of this alleged fraud was facilitated by an abuse in the investor visa process,” said HSI New York Acting Special Agent in Charge Patel. “In tandem with our partners, HSI continues to steadfastly monitor U.S. visa and travel systems for indicators of malign foreign actor abuse and will continue to aggressively investigate attacks on the integrity of the framework that allows access to the United States.”
“It’s alleged that Li and Wang defrauded their victim-investors out of millions, then used their ill-gotten gains to live luxuriously and ‘rub elbows’ with prominent politicians. It is through law enforcement partnerships and collaboration that we were able to break-down this multi-layered fraud scheme and ensure that the alleged culprits now face justice for their criminal behavior,” said Thomas M. Fattorusso, Special Agent in Charge of IRS:CI New York.
The Scheme to Defraud Investors
As alleged in the complaint, Li and Wang orchestrated a nearly decade-long scheme to defraud investors in a fictitious project to develop, build and operate a private educational institution in Sullivan County, New York, called the “Thompson Education Center” (the TEC Project). The defendants solicited victim-investors, many of them foreign nationals located outside of the United States, by falsely representing the progress they were making on the TEC Project and its support from government officials, including by sending investors and prospective investors promotional materials that included photographs of Li, the TEC Project’s President, with prominent U.S. politicians. Many foreign national victims were persuaded to invest in the TEC Project by, among other things, the defendants’ false assurances that their $500,000 investments would guarantee them lawful permanent residence in the United States through the EB-5 investment visa program administered by the Department of Homeland Security, U.S. Citizenship and Immigration Services (USCIS).
As alleged, instead Li, Wang and other members of the conspiracy siphoned off the money they fraudulently obtained from investors by transferring the funds through bank accounts held in the names of various companies that Li had created. Once the funds were in those accounts, Li and Wang used the funds to pay for numerous personal expenses including clothing and accessories, jewelry, housing, vacation travel, upscale dining, and political contributions to prominent politicians. The portion of the invested capital Li and Wang actually spent on the TEC Project was used merely to create and perpetuate the fiction that the TEC Project was a viable development project that was actually under construction. For example, Li and Wang hired contractors, engineers and other professionals to create architectural drawings and plans and perform minor work on or around the development site, which Li and Wang showed to potential investors to mislead them into believing the TEC Project had a realistic probability of completion and of delivering the returns on investment that the conspirators promised their investors.
As of July 2022, more than 150 investors have invested at least $27 million in the TEC Project, including approximately $16.5 million from EB-5 investors who were promised a green card in return for their investment, and approximately $11 million from stock investors who were promised that an IPO would take place. As of March 2022, Li, Wang, and their co-conspirators have misappropriated and laundered at least $2 million in TEC Project investor funds. During this same period, Li, Wang and their co-conspirators spent at least an additional $2.5 million dollars in investor funds on various personal expenses with no clear business purpose, none of which was reported as income to the Internal Revenue Service by Li or Wang. To date, no EB-5 investor in the TEC Project has received a temporary or permanent green card and the TEC Project has not made an IPO or been listed on any stock exchange.
Selling Access to U.S. Politicians
In furtherance of their scheme, Li and Wang also acted as “straw donors” for foreign nationals to unlawfully contribute to campaigns supporting U.S. politicians and political committees. Among other things, Li and Wang promised foreign nationals access to U.S. political events and politicians in exchange for a fee. Li and Wang used the money they received from foreign nationals to fund political contributions, and falsely identified themselves and other U.S. citizens as the contributors of the funds, in violation of the Federal Election Campaign Act (FECA) and FEC regulations. In some cases, Li and Wang used TEC investors’ investment funds to make the political contributions which they used to gain access to the political events, where Li and Wang took photographs with elected officials. Li and Wang would then use the photographs as a marketing tool in soliciting investments from foreign nationals in the TEC Project.
For example, as alleged in the complaint, Li and Wang charged twelve foreign nationals $93,000 per person for admission to a June 28, 2017 fundraising event (the June 28, 2017 Fundraiser) with the then-President of the United States. Li and Wang used the funds that they collected from the foreign nationals to unlawfully make $600,000 in political contributions in their own names—$270,500 from Li and $329,500 from Wang—to the joint fundraising committee hosting the June 28, 2017 Fundraiser. Li, Wang and their foreign national guests attended the June 28, 2017 Fundraiser and took photographs with the then-President of the United States. Li and Wang later used a photograph of Li and the President taken at the fundraiser to solicit investment in the TEC Project.
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'The FBI has established a hotline for potential victims. If you have information regarding the allegations in the complaint or believe you may have been a victim, please call 1-800-CALL-FBI or submit a tip online at tips.fbi.gov.
The charges in the complaint are merely 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 and the Office’s Public Integrity Section. Assistant United States Attorneys Robert T. Polemeni, Ian C. Richardson, and Joshua Hafetz are in charge of the prosecution with assistance from Paralegal Specialist Magdalena St. Surin. Assistant United States Attorney Claire S. Kedeshian of the Office’s Asset Recovery Section is responsible for the forfeiture of assets.
The Defendants:
SHERRY XUE LI
Age: 50
Oyster Bay, New YorkLianbo Wang, also known as “Mike Wang”
Age: 45
Oyster Bay, New YorkE.D.N.Y. Docket No. 22-MJ-756
U.S. Citizen Extradited from Costa Rica to Face Wire Fraud ChargesRead the Press Release
David Butler, a United States citizen, will be arraigned today on an Indictment charging him with Conspiracy to Commit Wire Fraud in connection with a scheme to defraud investors in a form of investment known as “binary options.” Butler was arrested in April 2022 in Costa Rica and extradited to the United States on July 14, 2022. The defendant is scheduled to be arraigned this afternoon before United States Magistrate Judge James M. Wicks at the federal courthouse in Central Islip.
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 M. Fattorusso, Special Agent-in-Charge, Internal Revenue Service-Criminal Investigation, New York (IRS-CI) announced the extradition.
“Using sophisticated computer software, the defendant and his co-conspirators allegedly cheated unsuspecting investors out of more than $5 million” stated United States Attorney Peace. “This Office is committed to working with our international partners to dismantle fraudulent schemes and bring perpetrators to justice wherever they are.”
Mr. Peace thanked the Costa Rican government for its assistance with the arrest and extradition.
“Butler allegedly swindled investors out of millions by selling false promises and later manipulating the numbers to the investors’ disadvantage. His alleged involvement in this complex fraud scheme has now landed him back in the U.S. to face the consequences of his illicit acts. Butler may have sold predetermined profits that turned out to be a sham, but his criminal arrest and prosecution are as real as it gets,” said IRS-CI Special Agent in Charge Fattorusso.
As alleged in court filings, between approximately January 2011 and October 2016, Butler and his co-conspirators operated binary options companies, including SpotFN, Binary FN and Janus Options (Binary Options Companies) from Glen Cove, New York, Costa Rica and Kosovo. The Binary Options Companies promised to pay investors, who were located throughout the United States, a predetermined profit based upon particular outcomes in the markets for securities, currencies and other investments. For example, the Binary Options Companies would offer to pay customers a predetermined profit if a particular security or currency was valued at a particular price on a particular day at a particular time.
To induce investments, Butler and his co-conspirators allegedly told binary options investors, in telephone calls and emails, that the predetermined profits that the Binary Options Companies had promised them in connection with the investors’ purchases of binary options would be based upon the actual prices of securities, currencies and other investments at particular points in time. Unbeknownst to the investors, however, Butler and his co-conspirators used a computer software that allowed the Binary Options Companies to manipulate data associated with the investors’ binary options so that the probability of investors earning a profit would favor the Binary Options Companies. At no time did Butler or any other employee of the Binary Options Companies inform the investors that the binary options that they had purchased from the Binary Options Companies could be manipulated to the investors’ disadvantage. As a result of their deception, Butler and his co-conspirators allegedly stole more than $5 million from binary options investors.
The charges in the Indictment are allegations, and the defendant is presumed innocent unless and until proven guilty. If convicted, the defendant faces up to 20 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 Justice Department’s Office of International Affairs worked with law enforcement partners in Costa Rica to secure the arrest and extradition of Butler to the United States.
The Defendant:
DAVID BUTLER
Age: 52
San Jose, Costa Rica
Pittsburgh, KansasE.D.N.Y. Docket No. 18-CR-680 (JS)
United States Files Claims Alleging Fresenius Vascular Care, Inc. Defrauded Medicare and Other Healthcare Programs by Billing for Unnecessary Procedures Performed on Dialysis PatientsRead the Press Release
The United States filed a civil complaint yesterday in federal court in Brooklyn against Fresenius Vascular Care, Inc. (“Fresenius”) alleging that the company performed unnecessary procedures on dialysis patients at nine centers across New York City and Long Island, and billed the procedures to Medicare, Medicaid, the Federal Health Benefits Program and TRICARE. The complaint seeks damages and penalties under the False Claims Act.
The filing was announced by Breon Peace, United States Attorney for the Eastern District of New York, and Scott J. Lampert, Special Agent-in-Charge, U.S. Department of Health and Human Services, Office of Inspector General’s Office of Investigations (HHS-OIG).
“The conduct alleged in this case is egregious, as Fresenius not only defrauded federal healthcare programs but also subjected particularly vulnerable people to medically unnecessary procedures,” stated United States Attorney Peace. “This Office will hold medical providers accountable for practices that needlessly expose patients to harm for financial gain at taxpayer expense.”
Mr. Peace also expressed his thanks to the Federal Bureau of Investigation, New York Field Office, the United States Office of Personnel Management, and the United States Department of Defense for their assistance with the investigation.
“The alleged conduct by Fresenius unnecessarily compromised patient care and undermined the financial integrity of federal health care programs,” stated HHS-OIG Special Agent-in-Charge Lampert. “Along with our law enforcement partners, HHS-OIG is committed to protecting beneficiaries and taxpayers from such abusive practices.”
As alleged in the complaint, from about January 1, 2012 through June 30, 2018, Fresenius routinely performed certain procedures on patients with End Stage Renal Disease (ESRD) who were receiving dialysis, without sufficient clinical indication that the patients needed the procedures. These interventions included fistulagrams, which are radiological procedures in which dye is injected into the patient’s vein or artery to visualize the port and surrounding blood vessels, and angioplasties, in which wires and balloons are inserted into veins or arteries that have narrowed to restore the patient’s blood flow. Fresenius knowingly subjected ESRD patients—who included elderly, disadvantaged minority, and low-income individuals—to these procedures to increase its revenues.
The government filed its complaint in an ongoing action commenced pursuant to the qui tam provisions of the False Claims Act, United States ex rel. Pepe and Sherman v. Fresenius Medical Holdings, Inc., et al., No. 14-CV-3505 (ERK). The case is being handled by Assistant U.S. Attorneys Jolie Apicella and Anjna Kapoor, and Special Assistant U.S. Attorney Mary Ellen Buntin of the Office’s Civil Division.
Defendants operated vascular access centers at the following locations during the relevant period:
- American Access Care of Bellmore (now “American Access Care Nassau County”), 250 Pettit Avenue, Suite 2, Bellmore, NY 11710
- American Access Care Brooklyn, 577 Prospect Avenue Lower Level, Brooklyn, NY 11215
- American Access Care of New York (now “American Access Care Manhattan”), 403 E. 91st Street, Floor 2, New York, NY 10128
- American Access Care Queens, 176-60 Union Turnpike #130, Suite 130, Flushing, NY 11366
- American Access Care Suffolk County, 32 Central Avenue, Hauppauge, NY 11788
- American Access Care Bronx, 1200 Waters Place N. Lobby, Suite M 115, Bronx, NY 10461
- Saqib Chaudhry, MD – Flushing, 176-60 Union Turnpike Utopia Center, Suite 145, Flushing, NY 11366
- Saqib Chaudhry, MD – Roslyn, 1044 Northern Boulevard, Suite 302, Roslyn, NY 11676 (no longer operating)
- Verrazano Vascular Associates at Access Care Physicians, 2025 Richmond Avenue, Suite 1LL, Staten Island, NY 10314
Long Island Man Convicted of over $600 Million Health Care Fraud, Wire Fraud and Identity Theft SchemeRead the Press Release
Earlier today, a federal jury in Central Islip returned a guilty verdict on eight counts of a superseding indictment charging Mathew James with perpetrating an over $600 million health care fraud scheme, which also included wire fraud and aggravated identity theft charges. The verdict followed a six-week trial before United States District Judge Joanna Seybert.
Breon Peace, United States Attorney for the Eastern District of New York, Kenneth A. Polite Jr., Assistant Attorney General of the Justice Department’s Criminal Division, and Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the verdict.
“The defendant stands convicted of carrying out an audacious scheme in which he used insurance companies like ATM machines. He stole hundreds of millions of dollars until he was finally exposed by a paper trail a mile-long, phone recordings on which he impersonated patients, and text messages and emails with his co-conspirator doctor clients demonstrating his nefarious billing practices. For this massive fraud, a federal jury convicted him today,” stated United States Attorney Peace. “Health care fraud is not a victimless crime, because fraudulent billing ultimately affects consumers who must pay the cost of higher insurance premiums.”
“James orchestrated a fraudulent medical billing scheme to steal from insurance companies and businesses, in order to line his own pockets,” said Assistant Attorney General Polite of the Justice Department’s Criminal Division. “This conviction shows that medical billers who fuel health care fraud will be brought to justice.”
As proven at trial, James operated medical billing companies to provide billing services for physicians, primarily plastic surgeons throughout the United States, and used his companies to carry out a massive scheme to defraud insurance companies. As a third-party medical biller, James submitted claims to insurance companies and when necessary, requested reconsideration or appeals of denied claims. The evidence showed that James billed for procedures that were either more serious or entirely different than those his doctor-clients performed. For example, the government presented evidence that James impersonated Jeff Pash, the National Football League’s general counsel, and Marcus Smart, a professional basketball player for the Boston Celtics of the National Basketball Association, in calls the defendant made to insurance companies in which he exaggerated medical procedures. James made thousands of impersonation calls resulting in over tens of millions of dollars in additional reimbursement to his doctor-clients and from which he received a percentage of the fraudulent proceeds.
James also directed his doctor-clients to schedule elective surgeries through the emergency room so that insurance companies would reimburse at substantially higher rates. When insurance companies denied the inflated claims, James impersonated patients to demand that the insurance companies pay the outstanding balances of tens or hundreds of thousands of dollars.
The FBI investigated the case and was brought under the supervision of the U.S. Attorney Attorney’s Office for the Eastern District of New York and the Criminal Division’s Fraud Section. Assistant United States Attorneys Catherine M. Mirabile and Antoinette N. Rangel of the Eastern District of New York, and Acting Assistant Chief Miriam L. Glaser Dauermann of the Fraud Section are in charge of the prosecution with the assistance of paralegal specialist Shernita Moore-Glasgow.
The Defendant:
MATHEW JAMES
Age: 54
Saint James, Long IslandE.D.N.Y. Docket No. 19-CR-382 (JS)
Dark Web Vendor of Illegal Narcotics Indicted for Distributing Heroin and Cocaine in Exchange for BitcoinRead the Press Release
A three-count indictment was unsealed today in the United States District Court for the Eastern District of New York, charging Edison Hernandez, also known as “dragoncove,” “originaldragoncove,” “theoriginaldragoncove” and “Nino,” with distribution and possession with intent to distribute heroin and cocaine, as well as delivery and distribution of heroin and cocaine by means of the internet. These first two counts relate to Hernandez’s alleged activities on the dark web starting in January 2013.
The third count of the indictment separately charges Hernandez, Michael Caruso, and Raymer Ynoa with conspiracy to distribute and possess with intent to distribute cocaine, methamphetamine, ketamine, and 3,4-methylenedioxy-methamphetamine (MDMA) through a door-to-door drug delivery service. A separate criminal complaint was also unsealed today, charging Irvin Hernandez with being a member of the same door-to-door drug delivery conspiracy.
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); and Daniel B. Brubaker, Inspector-in-Charge, New York Division, United States Postal Inspection Service (USPIS), announced the charges.
“As alleged, Edison Hernandez went to great lengths to conceal his identity so he could send thousands of packages containing dangerous drugs throughout the country and team up with his co-conspirators to deliver them door-to-door in New York City,” stated United States Attorney Peace. “Hiding behind the dark web, encryption services, or BitCoin will not stop this Office from rooting out those who flood our communities with illegal and hazardous narcotics.”
Mr. Peace expressed his appreciation for the significant contributions provided by the New York City Police Department, U.S. Customs and Border Protection, Internal Revenue Service – Criminal Investigations Division, Drug Enforcement Administration, Nassau County Sheriff’s Department & Port Authority of New York and New Jersey Police Department.
“Hernandez is alleged to have used complex technology such as the dark web, cryptocurrency, and encrypted messaging applications to conceal his actions. Today’s enforcement actions are examples to high-tech criminals that no matter how well-hidden you believe you are, you are not beyond the reach of the law,” said Homeland Security Investigations (HSI) New York Acting Special Agent in Charge Patel. “HSI and our partners will continue to work tirelessly to keep deadly narcotics out of our communities, no matter where they are sold - on the street corner or from the virtual corners of the dark web.”
USPIS Inspector-in-Charge of the New York Division Brubaker said: “The defendants thought the dark web marketplace would hide their illicit activities, but Postal Inspectors and our law enforcement partners brought their criminal enterprise to light. We are committed to the fight against the illegal sale of dangerous narcotics and will work in coordination with our partner agencies to expose anyone who tries to hide behind the veil of the dark web. We will use every resource available to us to investigate and prosecute anyone who uses the mail for illegal purposes. Today, the defendants learned the hard way that once their crimes left the dark web and entered the real world, Postal Inspectors and our law enforcement partners were there waiting to take them down.”
Background on Dark Web Marketplaces
The internet contains online marketplaces for narcotics and other illegal items that exist on the dark web, a part of the internet located beyond the reach of traditional internet browsers and accessible only through the use of networks designed to conceal user identities. Silk Road, AlphaBay, Dream Market and Wall Street Market were some of these marketplaces that have since been taken down. All of these sites were large global dark web marketplaces that functioned like conventional e-commerce websites but were geared towards the trafficking of contraband. Vendors advertised the sale of illegal narcotics and other contraband; buyers purchased the illegal narcotics and contraband; buyers paid for the purchased goods using digital currency; and vendors shipped the goods through the United States mail and other means of delivery. These dark web marketplaces required users to trade in digital currencies, primarily Bitcoin, and the marketplaces did not allow for transactions in official, government-backed fiat currency.
Vendors and buyers on dark web marketplaces typically operated under anonymous monikers. However, vendors received ratings from buyers of narcotics based on, among other things, the quality of contraband, reliability of delivery and volume of traffic. In addition, vendors received rankings from the marketplace administrators based on user input.
Edison Hernandez’s Dark Web Vendor Operation
As alleged, defendant Edison Hernandez was a highly rated vendor of illegal narcotics on Silk Road, AlphaBay, Dream Market and Wall Street Market. From January 2013 until April 2019, Hernandez advertised and sold heroin and cocaine to customers in the United States through these dark web marketplaces.
Hernandez concealed his criminal activity by accepting payment only in the form of Bitcoin and operating under the online monikers “dragoncove,” “originaldragoncove” and “theoriginaldragoncove”. Hernandez shipped packages under fictitious names and directed customers to contact him through encrypted messaging services.
The defendant completed thousands of transactions on SilkRoad, AlphaBay, Dream Market and Wall Street Market and regularly received high ratings and positive reviews from buyers.
The Defendants’ Operation of a Door-to-Door Drug Delivery Service
As charged in the indictment and the complaint, between February 2019 and January 2022, defendants Edison Hernandez, Michael Caruso, Raymer Ynoa and Irvin Hernandez separately operated a door-to-door drug delivery service in the New York City area. The defendants advertised their service with the name “Nino & Viktor’s Pastry Shoppe.” The service offered customers an array of different drugs for sale, including cocaine, methamphetamine, ketamine, and MDMA. After customers ordered drugs over an encrypted messaging app, a deliveryman would arrive later the same day to distribute the drugs.
The charges in the indictment and complaint are allegations and the defendants are presumed innocent unless and until proven guilty.
The government’s case is being handled by the Office’s International Narcotics and Money Laundering Section. Assistant United States Attorney Andrew D. Wang is in charge of the prosecution and Assistant United States Attorney Madeline O’Connor and Brendan King of the Office’s Asset Recovery Section are handling forfeiture matters.
The Defendants:
EDISON HERNANDEZ also known as “dragoncove,” “originaldragoncove,” “theoriginaldragoncove” and “Nino”
Age: 46
Brooklyn, New YorkMICHAEL CARUSO
Age: 42
Brooklyn, New YorkRAYMER YNOA
Age: 32
Brooklyn, New YorkIRVIN HERNANDEZ
Age: 44
Brooklyn, New YorkE.D.N.Y. Docket Nos. 22-CR-245 (CBA) and 22-MJ-717
Two Eastern District of New York Assistant U.S. Attorneys, Former Acting U.S. Attorney, and Paralegal Specialist Receive Attorney General's AwardRead the Press Release
Two Eastern District of New York Assistant United States Attorneys, a former Acting United States Attorney, and one paralegal specialist were among the 298 department employees recognized today by Attorney General Merrick B. Garland at the 69th Annual Attorney General’s Awards Ceremony. Fifty-four non-department individuals were also honored for their work. The annual ceremony recognizes Department of Justice employees and partners for extraordinary contributions to the enforcement of our nation’s laws.
“This year’s awardees have served selflessly to further the Department’s important work upholding the rule of law, keeping our country safe, and protecting civil rights,” said Attorney General Merrick B. Garland. “I am proud to recognize these individuals for their professionalism, skill, and leadership, and I am grateful for their service to our Department and our nation.”
“The groundbreaking work of our Eastern District honorees and law enforcement partners achieved justice for the women victimized by Nxivm’s leader Keith Raniere and his sophisticated associates who carried out their crimes for years, protected by a wall of secrecy, intimidation, and humiliation that the prosecution team ultimately demolished,” stated United States Attorney Peace. “This case serves as a model for using racketeering, labor and sex trafficking statutes to combat crimes that have caused victims significant harm. Today’s occasion is also an opportunity to once again praise the bravery of the victims in this case who, having put their trust in our extraordinary team, found the strength to testify against Raniere, regain control of their lives, and begin the long process of healing.”
The Attorney General’s Award for Distinguished Service
United States v. Keith Raniere et al.
Assistant U.S. Attorneys Tanya Hajjar and Kevin Trowel, former Acting U.S. Attorney Mark J. Lesko, and Paralegal Specialist Teri Carby of the U.S. Attorney’s Office for the Eastern District of New York, together with the investigative team – FBI Supervisory Special Agents Anthony Bivona and Christopher Donohue; FBI Special Agents Delise Jeffrey, Michael W. Lever, Maegan O. Rees, and Michael J. Weniger; FBI Victim Specialist Laura B. Riso; Task Force Officer Charles B. Fontanelli; and Special Agents Megan Buckley and Christopher T. Munster, Homeland Security Investigations – were recognized for their efforts in dismantling a criminal enterprise led by Keith Raniere, whose members engaged in racketeering, sex trafficking, and forced labor, among other crimes.
For over a decade, Raniere and his co-conspirators led a criminal enterprise under the guise of various self-help organizations headquartered in Albany, New York, with centers operating elsewhere in the United States, Mexico and Canada. In late 2015, Raniere created a secret society called DOS, whose members were drawn from the self-help organizations. Women were recruited under the false pretense of joining a women-only mentorship group, later discovering that they had taken “vows of obedience” to women who had themselves pledged obedience to Raniere. Prospective DOS victims were required to provide “collateral” to Raniere and his co-conspirators, which included damaging confessions about themselves and their loved ones, whether true or not, rights to financial assets and sexually explicit photographs and videos. Collateral was used to coerce victims into providing labor and services, including sex acts with Raniere, for the benefit of Raniere and the criminal enterprise.
After securing the convictions of Raniere’s five co-defendants through guilty pleas, the team used a victim-centered, trauma-informed approach to successfully prepare multiple victims for trial testimony. The team employed precedent-setting applications of the RICO, sex trafficking, and labor trafficking statutes to pursue justice for the victims and provisions of the Trafficking Victims Protection Act of 2000 to ensure victim participation in all aspects of the prosecution.
Following a six-week trial, Raniere was held accountable for over a decade of crime and exploitation that had been concealed behind the guise of various “personal growth” programs. In June 2019, Raniere was convicted of racketeering conspiracy; racketeering involving predicate acts of sex trafficking, child exploitation, and obstruction of justice; and substantive offenses including sex trafficking, forced labor conspiracy and wire fraud conspiracy. In October 2020, Raniere was sentenced to 120 years in prison.
Long Island MS-13 Gang Associate Sentenced to 25 Years in Prison for Murdering a 15-Year-Old Boy in FreeportRead the Press Release
Earlier today, in federal court in Central Islip, Eduardo Portillo, also known as “Firuli” and “Tito” (Portillo), an associate of the violent transnational criminal organization La Mara Salvatrucha, also known as the “MS-13,” was sentenced by United States District Judge Gary R. Brown to 25 years in prison for his role in the murder of 15-year-old Javier Castillo in Cow Meadow Park in Freeport. The defendant, who was arrested in El Salvador and extradited to the United States to face these charges, pleaded guilty in September 2021 to racketeering, and admitted to his involvement in the Castillo murder and narcotics trafficking on behalf of the MS-13.
Breon Peace, United States Attorney for the Eastern District of New York, Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Rodney K. Harrison, Commissioner, Suffolk County Police Department (SCPD), announced the sentence.
“With today’s sentence, Portillo learned there are very serious consequences for participating in the planning and execution of a murder so that he could gain membership in the MS-13 gang, a vicious criminal enterprise whose members have no regard for human life or the rule of law,” stated United States Attorney Peace. “That the victim in this case was a 15-year-old boy is all the more tragic, and it is my hope that dogged work of law enforcement in tracking down the defendant in El Salvador, his extradition to the Eastern District of New York, and the decades the defendant will spend in prison, brings some measure of closure to the family of the young victim.”
Mr. Peace expressed his appreciation to the investigators and analysts from the FBI’s Long Island Gang Task Force and Transnational Anti-Gang (TAG) Unit in El Salvador, the Nassau County Police Department, and the Justice Department’s Office of International Affairs for its assistance with Portillo’s extradition.
“Today’s sentencing sends another clear message that gang violence will not be tolerated and the extradition of this suspect proves law enforcement will go to great lengths to ensure justice is served,” stated SCPD Commissioner Harrison said. “I would like to thank all our law enforcement partners for bringing this case to a successful conclusion and hope this sentencing brings some sense of closure for the victim’s family.”
Portillo and other MS-13 members targeted Castillo for death because he was believed to be a member of the 18th Street gang, one of MS-13’s principal rivals. On October 10, 2016, Portillo, who was friendly with Castillo, and other Brentwood-based members of the Sailors Locos Salvatruchas Westside (Sailors) clique of the MS-13, convinced Castillo to go with them to Freeport – approximately 20 miles away – to smoke marijuana. There, they lured Castillo to an isolated marsh area in Cow Meadow Park, where Portillo and his co-conspirators attacked Castillo, taking turns hacking him to death with a machete. Afterwards, the MS-13 members dug a hole and buried Castillo’s body. The victim’s brother informed the SCPD that he was told by a person who had ties with the MS-13 to stop looking for Castillo, because he was already “gone and buried.” Castillo’s body was recovered one year later in October 2017.
Portillo, who was illegally in the United States at the time of the murder, was deported to El Salvador before he was indicted for Castillo’s murder. However, after he was indicted, the United States Attorney’s Office for the Eastern District of New York (USAO-EDNY) and FBI obtained an INTERPOL Red Notice for Portillo. On February 23, 2019, El Salvador’s Policía Nacional Civil (PNC) Centro Antipandillas Transnacional (CAT) Unit, who are assigned to the Transnational Anti-Gang (TAG) Unit, located Portillo and arrested him in Morazán, El Salvador on the Red Notice. The USAO-EDNY subsequently requested Portillo’s extradition and, on November 6, 2020, he was extradited to the United States.
Today’s sentencing is the latest accomplishment in a series of federal prosecutions by the USAO-EDNY targeting members and associates of the MS-13, a violent, transnational criminal organization. The MS-13’s leadership is based in El Salvador, Honduras, Guatemala and Mexico, but the gang has thousands of members across the United States. With numerous branches, or “cliques,” the MS-13 is the most violent criminal organization on Long Island. Since 2003, hundreds of MS-13 members, including dozens of clique leaders, have been convicted on federal felony charges in the Eastern District of New York. A majority of those MS-13 members have been convicted on federal racketeering charges for participating in murders, attempted murders, and assaults. Since 2010, this Office has obtained indictments charging MS-13 members and associates with carrying out more than 60 murders in the district, and has convicted dozens of MS-13 leaders, members, and associates in connection with those murders. These prosecutions are the product of investigations led by the FBI’s Long Island Gang Task Force, which is comprised of agents and officers of the FBI, SCPD, Nassau County Police Department, Nassau County Sheriff’s Department, Suffolk County Probation Office, Suffolk County Sheriff’s Office, New York State Police, Hempstead Police Department, Rockville Centre Police Department, and New York State Department of Corrections and Community Supervision.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorneys Paul G. Scotti, Justina L. Geraci, and Megan E. Farrell are in charge of the prosecution.
The Defendant:
EDUARDO PORTILLO (also known as “Firuli” and “Tito”)
Age: 25
Residence: San Francisco Gotera, Morazán, El Salvador; formerly of Central Islip and Brentwood, New YorkDocket: 16-CR-403 (S-7)(GRB)
Folk Nation Leader Charged in Connection with March 22, 2022 ShootingRead the Press Release
An indictment was unsealed today in United States District Court for the Eastern District of New York charging Kwyme Waddell with being a felon in possession of ammunition. As alleged in court filings, the charge is related to a shooting Waddell committed in Brooklyn on March 22, 2022 in which the defendant shot into a crowd of people on the block of East 21st Street between Ditmas Avenue and Dorchester Road shortly after 9:30 p.m.
The defendant is one of the top leaders of the No Love City (NLC) subset of the Folk Nation Gangster Disciples, a violent street gang operating primarily in the area of Newkirk Avenue and Flatbush Avenue in Brooklyn.
Waddell was arrested this morning in Brooklyn and is scheduled to be arraigned this afternoon before United States Magistrate Judge Vera M. Scanlon at the federal courthouse in Brooklyn.
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 charge and arrest.
“As alleged, the defendant brazenly fired eleven shots into a crowd of people. Thankfully no one was harmed,” stated United States Attorney Breon Peace. “This Office will continue to work tirelessly with all of our law enforcement partners to prosecute those who engage in gun violence, eliminate gangs from our streets and cut off the flow of guns that allow them to victimize our communities.”
Mr. Peace expressed his appreciation to the FBI/NYPD Metro Safe Streets Task Force, the NYPD’s Gun Violence Suppression Division, and the Kings County District Attorney’s Office for their outstanding work and assistance in this investigation and prosecution.
“Today’s indictment is another step forward in our ongoing work to rid New York City of violent gangs, illegal guns, and the havoc they cause in our community,” said NYPD Commissioner Sewell. “Our focus remains on the people we serve, and we must ensure real consequences for anyone who puts New Yorkers at risk. To that end, I want to thank the U.S. Attorney’s Office for the Eastern District of New York, the King’s County District Attorney’s Office, the FBI’s New York Field Office, and all the investigators for their work on this case and for their steadfast commitment to public safety.”
As alleged in the indictment and other court filings, the charge relates to a shooting committed in Brooklyn on March 22, 2022 in which the defendant shot into a crowd of people on the block of East 21st Street between Ditmas Avenue and Dorchester Road shortly after 9:30 p.m. As captured on surveillance video, Waddell drove to the location, fired at least eleven rounds at a crowd of people standing at the corner of Dorchester Road and East 21st Street, an area known as territory of NLC’s gang rivals. Immediately following the shooting, Waddell bragged about the shooting to friends while pantomiming a gun with his hands, as captured on additional surveillance footage.
The indictment is part of a coordinated effort to dismantle the Brooklyn sets of Folk Nation Gangster Disciples and their leadership by federal and state authorities, including the United States Attorney’s Office for the Eastern District of New York, the Kings County District Attorney’s Office, the Joint FBI-NYPD Safe Streets Task Force, and the NYPD’s Gun Violence Suppression Division. As part of the federal-state initiative, the United States Attorney’s Office for the Eastern District of New York and the Kings County District Attorney’s Office have brought numerous prosecutions against members and associates of Folk Nation Gangster Disciples, including 11 members and associates of the Folk Nation Gangster Disciples charged with multiple shootings and related firearms offenses in Brooklyn.
The charge in the indictment is merely an allegation, and the defendant is presumed innocent unless and until proven guilty.
This case was brought as part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. As part of the program, U.S. Attorneys’ Offices work in partnership with federal, state, local and tribal law enforcement and their local communities to develop effective, locally based strategies to reduce violent crime.
The government’s case is being handled by the Office’s Organized Crime and Gangs Section. Assistant United States Attorneys Sophia M. Suarez, Dana Rehnquist and Jonathan Siegel are in charge of the prosecution.
The Defendant:
KWYME WADDELL
Age: 30
Brooklyn, New YorkE.D.N.Y. Docket No. 22-CR-305 (ENV)
U.S. Attorney Breon Peace to Lead Attorney General's Subcommittee on White Collar CrimeRead the Press Release
Breon Peace, United States Attorney for the Eastern District of New York, has been 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.
“I am honored that Attorney General Garland and my colleagues on the Attorney General’s Advisory Committee have chosen me to lead the White Collar Fraud subcommittee,” stated United States Attorney Peace. “The Attorney General has made clear that the vigorous and fair enforcement of corporate criminal policies is a department priority. The subcommittee, which includes many of my outstanding U.S. Attorney colleagues from around the country, will thoughtfully advise on issues of significance in this area in furtherance of the department’s mission to protect investors, consumers, employees, corporations and the integrity of financial markets from sophisticated wrongdoers. I look forward to serving in this important role.”
The AGAC was established nearly 50 years ago to give United States Attorneys a voice in department policies and to advise the Attorney General of the United States.
Jury Convicts Doctor of Health Care Fraud SchemeRead the Press Release
A federal jury convicted a New York man today for defrauding Medicare and Medicaid by causing the submission of false and fraudulent claims for surgical procedures that were not performed.
According to court documents and evidence presented at trial, Harold Bendelstein, 71, of Queens, billed Medicare and Medicaid for an incision procedure of the external ear for hundreds of patients, when in fact all he actually performed was an ear exam or ear wax removal. Specifically, between January 2014 and February 2018, Bendelstein, an ENT doctor, billed Medicare and Medicaid approximately $585,000 and was paid approximately $191,000. Medicare and Medicaid data demonstrated that Bendelstein was an outlier and the highest biller for this procedure in New York State.
Bendelstein was convicted of one count of health care fraud and one count of making a false claim. He is scheduled to be sentenced on Nov. 7, and faces a maximum penalty of 15 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; Special Agent in Charge Scott J. Lampert of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Office of Investigations; and Acting Medicaid Inspector General Frank T. Walsh of the Office of the Medicaid Inspector General (OMIG) made the announcement.
HHS-OIG and OMIG investigated the case.
Trial Attorneys Andrew Estes and Patrick J. Campbell of the Criminal Division’s Fraud Section and Assistant U.S. Attorney John Vagelatos of the Eastern District of New York are prosecuting the case.
The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, comprised of 15 strike forces operating in 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 HHS-OIG, 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.
五名男子被指控與跨國鎮壓陰謀有關的罪行，以箝制居住在美國的中華人民共和國批評者Read the Press Release
布魯克林的一個聯邦大陪審團昨天發出一份替代起訴書，指控五名被告，包括一名現任聯邦執法人員和一名退休聯邦執法人員，犯有與代表中華人民共和國政府策劃的跨國鎮壓陰謀有關的各種罪行。
被告劉凡（Fan “Frank” Liu），62 歲，紐約州傑裏科人；馬修·齊布裏斯 (Matthew Ziburis)，49 歲，紐約州牡蠣灣人； 40 歲的中國公民孫強 (Qiang “Jason” Sun)於 2022 年 3 月被指控涉嫌針對政治觀點和行動不受中國政府青睞的美國居民，實施跨國鎮壓陰謀(以上姓名均為音譯)。除其他事項外，這些被告據稱密謀毀壞一名居住在洛杉磯的中國公民的藝術品，此人對中國政府持批評態度。他們在藝術家的工作場所和汽車中安裝了監視設備，以便從中國監視他。 劉和齊布裏斯於 2022 年 3 月根據刑事起訴被捕，而孫仍然在逃。
替代起訴書在該陰謀中增加了兩名新被告，即克雷格·米勒(Craig Miller)和德里克·泰勒(Derrick Taylor)。米勒是一名在國土安全部 (DHS) 的工作了 15 年的員工，目前被派往明尼阿波利斯的國土安全部緊急救援行動擔任遞解官，泰勒是一名退休的國土安全部執法人員，目前在加利福尼亞州歐文市擔任私家偵探。米勒和泰勒在聯邦調查局特工聯繫他們，詢問他們從受限制的聯邦執法資料庫中獲取和傳播有關中國駐美國持不同政見人士的敏感和機密資訊的情況後，被指控妨礙司法公正，因為其涉嫌銷毀證據。米勒和泰勒均於 2022年6月根據刑事指控被捕。
“我們將捍衛美國人民參與自由言論和政治表達的權利，包括中華人民共和國政府想要箝制的觀點，”負責國家安全的助理司法部長馬修·奧爾森說。 “根據指控，這些人協助外國政府特工箝制避難於此的持不同政見人士聲音。被告包括兩名宣誓的執法人員，他們選擇背棄誓言並違反法律。這項起訴書是讓所有這些被告對其罪行負責的下一步。”
紐約東區美國檢察官布倫·皮斯(Breon Peace)說：“正如所指控，本案涉及多方面的行動，旨在對行使言論自由的美國居民進行箝制、騷擾、抹黑和監視—在一名現任聯邦執法官員和一名私家偵探的協助下，他們從受限制的執法資料庫中提供了有關美國居民的機密資訊，當面對他們的不當行為時，他們撒謊並銷毀了證據。” “該辦公室將始終與我們的執法夥伴密切合作，剷除各級政府的腐敗官員，並將起訴那些代表敵對外國國家，針對美國領土上的美國居民言論自由採取行動的人。”
“本案暴露了中華人民共和國政府試圖箝制美國境內的不同聲音。被告（其中兩名是現任或前任聯邦執法官員）採取的行動表明，中華人民共和國如何試圖跟蹤、恐嚇和箝制反對者，”聯邦調查局反情報部門助理主任小艾倫·科勒 (Alan E. Kohler Jr.) 說。 “聯邦調查局與跨國鎮壓作鬥爭，因為它本身就是一種邪惡，是對開放社會自由的侵犯。我們社區的安全和國家的安全受到這種犯罪行為的危害，我們仍然致力於打擊跨國鎮壓，並將肇事者繩之以法。”
劉和齊布裏斯被指控串謀充當中華人民共和國政府的代理人。劉、齊布裏斯和孫被指控串謀進行州際騷擾和非法使用身份識別手段。劉和孫被指控串謀賄賂一名聯邦官員，以獲取
居住在美國的民主活動人士的納稅申報表。米勒和泰勒均被指控妨礙司法公正，而泰勒則被指控向聯邦調查局做出虛假陳述。
如果罪名成立，劉將面臨最高30年的監禁；齊布裏斯、孫和泰勒面臨最高 25 年監禁；米勒面臨最高20年的監禁。被告將于稍後出庭接受提審。
據稱，劉和齊布裏斯在孫的指導和控制下運作，抹黑居住在美國（包括紐約市、加利福尼亞州和印第安那州）的中國民主持不同政見人士。努力傳播有關居住在美國持不同政見者的負面資訊，並對居住在美國持不同政見者進行監視、跟蹤、騷擾和監視。
根據起訴書，劉的一名同謀（“同謀”）聘請泰勒獲取居住在美國的多名中國持不同政見者的個人身份資訊，包括護照資訊和照片以及飛行和移民記錄，據稱泰勒責成包括米勒在內的兩名國土安全部執法人員辦理此事。據稱，米勒和另一名國土安全部特工從受限資料庫中獲取了資訊，並將其不當提供給泰勒，泰勒又與同謀分享了該資訊。劉、齊布裏斯和孫在代表中華人民共和國政府行事時，利用此類資訊來對付和騷擾這些美國居民。
根據法庭文件，米勒和泰勒在面對聯邦調查局時都對自己過去的行為撒了謊。根據起訴書，米勒在接受聯邦調查局面談時，從手機中刪除了與泰勒的短信，泰勒指示一名同謀向美國政府隱瞞證據。在接受聯邦調查局面談時，泰勒錯誤地聲稱他從一位使用“黑色暗網”的朋友那裏獲得了相關記錄—很可能是指暗網。
根據起訴書，同謀者打電話給泰勒，聲稱他收到了司法部的傳票，要求提供同謀者與泰勒之間的通訊，而泰勒指示同謀者向美國政府隱瞞此類資訊。
法庭檔顯示，在接受聯邦調查局面談時，米勒最初聲稱與泰勒有零星接觸，並表示兩人並未討論工作事宜。在特工告誡米勒要誠實後，米勒承認泰勒向他提供了姓名以運行執法資料庫。米勒同意聯邦調查局搜查他的手機，最終承認他為泰勒進行了查詢，並將結果通過
短信發送給泰勒，而泰勒則提供了一張禮品卡作為酬勞。米勒隨後承認，他在當天早些時候的面談中刪除了與泰勒的短信鏈，並且他捏造了之前有關該短信鏈的所有陳述，包括該短信鏈是否包含泰勒要求提供的姓名。
紐約東區助理美國檢察官亞歷山大·所羅門 (Alexander A. Solomon) 和艾米麗·迪恩 (Emily J. Dean) 正在國家安全部反情報和出口管制科出庭律師斯科特·克拉菲 (Scott Claffee)、加州中區助理美國檢察官克里斯多夫·格裏格 (Christopher D. Grigg) 和明尼蘇達州區助理美國檢察官金伯利·斯文森 (Kimberly Svendsen) 的協助下起訴此案。美國檢察官皮斯還感謝美國移民和海關執法局職業責任辦公室在調查中提供的協助。
聯邦調查局創建了一個網站，供受害者舉報外國政府跟蹤、恐嚇或攻擊美國民眾的行為。如果您認為自己是或曾經是跨國鎮壓的受害者，請訪問https://www.fbi.gov/investigate/counterintelligence/transnational-repre….
起訴書只是一項指控，所有被告均被推定無罪，直到在法庭上排除合理懷疑而被證明有罪
五名男子被指控与跨国镇压阴谋有关的罪行，以箝制居住在美国的中华人民共和国批评者Read the Press Release
布鲁克林的一个联邦大陪审团昨天发出一份替代起诉书，指控五名被告，包括一名现任联邦执法人员和一名退休联邦执法人员，犯有与代表中华人民共和国政府策划的跨国镇压阴谋有关的各种罪行。
被告刘凡（Fan “Frank” Liu），62 岁，纽约州杰里科人；马修·齐布里斯 (Matthew Ziburis)，49 岁，纽约州牡蛎湾人； 40 岁的中国公民孙强 (Qiang “Jason” Sun)于 2022 年 3 月被指控涉嫌针对政治观点和行动不受中国政府青睐的美国居民，实施跨国镇压阴谋(以上姓名均为音译)。除其它事项外，这些被告据称密谋毁坏一名居住在洛杉矶的中国公民的艺术品，此人对中国政府持批评态度。他们在艺术家的工作场所和汽车中安装了监视设备，以便从中国监视他。 刘和齐布里斯于 2022 年 3 月根据刑事起诉被捕，而孙仍然在逃。
替代起诉书在该阴谋中增加了两名新被告，即克雷格·米勒(Craig Miller)和德里克·泰勒(Derrick Taylor)。米勒是一名在国土安全部 (DHS) 的工作了 15 年的员工，目前被派往明尼阿波利斯的国土安全部紧急救援行动担任递解官，泰勒是一名退休的国土安全部执法人员，目前在加利福尼亚州欧文市担任私家侦探。米勒和泰勒在联邦调查局特工联系他们，询问他们从受限制的联邦执法数据库中获取和传播有关中国驻美国持不同政见人士的敏感和机密信息的情况后，被指控妨碍司法公正，因为其涉嫌销毁证据。米勒和泰勒均于 2022年6月根据刑事指控被捕。
“我们将捍卫美国人民参与自由言论和政治表达的权利，包括中华人民共和国政府想要箝制的观点，”负责国家安全的助理司法部长马修·奥尔森说。 “根据指控，这些人协助外国政府特工箝制避难于此的持不同政见人士声音。被告包括两名宣誓的执法人员，他们选择背弃誓言并违反法律。这项起诉书是让所有这些被告对其罪行负责的下一步。”
纽约东区美国检察官布伦·皮斯(Breon Peace)说：“正如所指控，本案涉及多方面的行动，旨在对行使言论自由的美国居民进行箝制、骚扰、抹黑和监视—在一名现任联邦执法官员和一名私家侦探的协助下，他们从受限制的执法数据库中提供了有关美国居民的机密信息，当面对他们的不当行为时，他们撒谎并销毁了证据。” “该办公室将始终与我们的执法伙伴密切合作，铲除各级政府的腐败官员，并将起诉那些代表敌对外国国家，针对美国领土上的美国居民言论自由采取行动的人。”
“本案暴露了中华人民共和国政府试图箝制美国境内的不同声音。被告（其中两名是现任或前任联邦执法官员）采取的行动表明，中华人民共和国如何试图跟踪、恐吓和箝制反对者，”联邦调查局反情报部门助理主任小艾伦·科勒 (Alan E. Kohler Jr.) 说。 “联邦调查局与跨国镇压作斗争，因为它本身就是一种邪恶，是对开放社会自由的侵犯。我们小区的安全和国家的安全受到这种犯罪行为的危害，我们仍然致力于打击跨国镇压，并将肇事者绳之以法。”
刘和齐布里斯被指控串谋充当中华人民共和国政府的代理人。刘、齐布里斯和孙被指控串谋进行州际骚扰和非法使用身份识别手段。刘和孙被指控串谋贿赂一名联邦官员，以获取
居住在美国的民主活动人士的纳税申报表。米勒和泰勒均被指控妨碍司法公正，而泰勒则被指控向联邦调查局做出虚假陈述。
如果罪名成立，刘将面临最高30年的监禁； 齐布里斯、孙和泰勒面临最高 25 年监禁；米勒面临最高20年的监禁。被告将于稍后出庭接受提审。
据称，刘和齐布里斯在孙的指导和控制下运作，抹黑居住在美国（包括纽约市、加利福尼亚州和印第安纳州）的中国民主持不同政见人士。努力传播有关居住在美国持不同政见者的负面信息，并对居住在美国持不同政见者进行监视、跟踪、骚扰和监视。
根据起诉书，刘的一名同谋（“同谋”）聘请泰勒获取居住在美国的多名中国持不同政见者的个人身份信息，包括护照信息和照片以及飞行和移民记录，据称泰勒责成包括米勒在内的两名国土安全部执法人员办理此事。据称，米勒和另一名国土安全部特工从受限数据库中获取了信息，并将其不当提供给泰勒，泰勒又与同谋分享了该信息。刘、齐布里斯和孙在代表中华人民共和国政府行事时，利用此类信息来对付和骚扰这些美国居民。
根据法庭文件，米勒和泰勒在面对联邦调查局时都对自己过去的行为撒了谎。根据起诉书，米勒在接受联邦调查局面谈时，从手机中删除了与泰勒的短信，泰勒指示一名同谋向美国政府隐瞒证据。在接受联邦调查局面谈时，泰勒错误地声称他从一位使用“黑色暗网”的朋友那里获得了相关记录—很可能是指暗网。
根据起诉书，同谋者打电话给泰勒，声称他收到了司法部的传票，要求提供同谋者与泰勒之间的通讯，而泰勒指示同谋者向美国政府隐瞒此类信息。
法庭文件显示，在接受联邦调查局面谈时，米勒最初声称与泰勒有零星接触，并表示两人并未讨论工作事宜。在特工告诫米勒要诚实后，米勒承认泰勒向他提供了姓名以运行执法数据库。米勒同意联邦调查局搜查他的手机，最终承认他为泰勒进行了查询，并将结果通
过短信发送给泰勒，而泰勒则提供了一张礼品卡作为酬劳。米勒随后承认，他在当天早些时候的面谈中删除了与泰勒的短信链，并且他捏造了之前有关该短信链的所有陈述，包括该短信链是否包含泰勒要求提供的姓名。
纽约东区助理美国检察官亚历山大·所罗门 (Alexander A. Solomon) 和艾米丽·迪恩 (Emily J. Dean) 正在国家安全部反情报和出口管制科出庭律师斯科特·克拉菲 (Scott Claffee)、加州中区助理美国检察官克里斯托弗·格里格 (Christopher D. Grigg) 和明尼苏达州区助理美国检察官金伯利·斯文森 (Kimberly Svendsen) 的协助下起诉此案。美国检察官皮斯还感谢美国移民和海关执法局职业责任办公室在调查中提供的协助。
联邦调查局创建了一个网站，供受害者举报外国政府跟踪、恐吓或攻击美国民众的行为。如果您认为自己是或曾经是跨国镇压的受害者，请访问https://www.fbi.gov/investigate/counterintelligence/transnational-repre….
起诉书只是一项指控，所有被告均被推定无罪，直到在法庭上排除合理怀疑而被证明有罪。
五人被指控犯有与跨国镇压计划有关的罪行， 该计划压制在美居住的中国批评者的言论自由Read the Press Release
今天早些时候，大陪审团在布鲁克林联邦法院发回一份起诉书，指控五名被告人犯有与代表中华人民共和国政府策划的跨国镇压计划有关的各种罪行。
三名被告人——Fan “Frank” Liu、Matthew Ziburis和Qiang “Jason” Sun——据称参与了上述针对政治观点和行为不受中国政府支持（例如在中国宣扬民主）的美国居民的跨国镇压计划。 除其他事项外，被告人曾密谋摧毁居住在加利福尼亚州洛杉矶市的一名曾批评中国政府的中国公民的艺术品，并在该艺术家的工作场所和汽车中安装了监控设备，以从中国对其进行监视。 Liu和Ziburis已根据2022年3月的刑事控告书被捕，而Sun仍然在逃。
该计划中有两名新被告人——Craig Miller和Derrick Taylor。 Miller在国土安全部(DHS)工作了15年，目前被任命为国土安全部在明尼苏达州明尼阿波利斯市的紧急救援行动驱逐官；Taylor系一名退休的国土安全部执法人员，目前在加利福尼亚州尔湾市担任私家侦探。针对Miller和Taylor的指控涉及他们涉嫌妨碍司法公正（包括销毁证据），此前联邦调查局(FBI)特工接触了他们，并询问他们从受限制的执法数据库中获取有关在美国居住的中国持不同政见者的敏感和机密信息并加以传播的情况。这些信息被Liu和Sun在上述跨国镇压计划中使用。Miller和Taylor均根据一份2022年6月的刑事控告书被捕。
纽约州东区联邦检察官Breon Peace, 司法部负责国家安全司的助理司法部长Matthew Olsen 和联邦调查局负责纽约外勤办公室的助理局长Michael J. Driscoll宣布了上述逮捕和 指控。
“据称，这起案件涉及对行使言论自由的美国居民进行禁言、骚扰、抹黑和监视的多方面行动，这些行动得到了一名现任联邦执法人员和一名私家侦探的协助，他们提供了来自一个受限制的执法数据库的有关美国居民的机密信息，且当被指出不当行为时，他们撒了谎并销毁了证据，”联邦检察官Peace如是说。“本办公室将始终与我们的执法伙伴密切合作，铲除各级政府中的腐败官员，并将起诉那些代表敌对外国针对美国居民在美国领土上言论自由的人。”
Peace先生感谢美国移民与海关执法局职业责任办公室在本次调查中提供的协助。
“正如起诉书中所称，被告人实施了各种行为，以促进旨在压制中国持不同政见者在美国领土上的言论自由的跨国镇压计划。其中一名被告人甚至是一名联邦执法人员，据称他访问了政府数据库以协助非法活动，该行为与其保护所有美国居民权利的职责直接冲突。今天的行动是联邦调查局承诺积极追捕那些试图将敌对外国政府的利益置于我们居民利益之上的人的最新例证，”联邦调查局助理局长Driscoll如是说。
被告人概述
根据法庭文件，Liu系长岛杰里科居民，为一家据称位于纽约市的媒体公司的总裁；Ziburis系长岛牡蛎湾居民，为佛罗里达州退任惩教官和保镖；Sun系一家国际科技公司的中国员工；Miller在国土安全部(DHS)工作了15年，目前被任命为国土安全部在明尼苏达州明尼阿波利斯市的紧急救援行动驱逐官；Taylor系一名退休的国土安全部执法人员，目前在加利福尼亚州尔湾市担任私家侦探。
据称，Liu和Ziburis被指控合谋充当中国政府的代理人。Liu、Ziburis和Sun被指控合谋进行州际骚扰和将身份识别手段用于犯罪。Liu和Sun被指控合谋贿赂一名联邦官员，以获取一名在美国居住的民主活动人士的纳税申报表。 Miller和Taylor均被指控妨碍司法公正，而Taylor还被指控向联邦调查局作出虚假陈述。
案涉方案
如法庭文件所述，Liu和Ziburis在Sun的指挥和控制下，通过监视支持民主的中国持不同政见者并传播他们的负面信息，来诋毁这些居住在美国（包括纽约市、加利福尼亚州和印第安纳州）的支持民主的中国持不同政见者。例如，在Sun的指示下，Liu付钱给皇后区的一名私家侦探去贿赂美国国税局雇员，以获取其中一名持不同政见者的联邦纳税申报表。该私家侦探目前正配合执法部门调查，且国税局没有任何雇员收受贿赂。被告人计划公开披露该持不同政见者可能的税务责任，以诋毁他。合谋者还计划摧毁一名批评中国政府的持不同政见艺术家的艺术品，该艺术家将中国国家主席习近平描绘成冠状病毒分子的雕塑于 2021年春天被拆除。Sun还为Liu和Ziburis在跟踪、骚扰和监视在美国居住的持不同政见者方面的活动付费。
作为他们活动的一部分，Liu、Ziburis和Sun以电子方式监视民主活动人士。例如，Ziburis冒充一名有意购买持不同政见艺术家作品的艺术品经销商，偷偷地在该持不同政见者的工作场所和车内安装了监控摄像头和GPS设备。而Sun在中国观看了来自这些设备的实时视频和位置数据。Liu、Ziburis和Sun制定了类似的计划，在另外两名持不同政见者的住所和车辆上安装监控设备。 Liu和Ziburis计划以国际体育委员会成员的身份进入上述住所。
Liu、Ziburis和Sun还计划在模拟媒体会议上，打着Liu自称的媒体组织的旗号，采访持不同政见者。Sun为这些虚假采访提供了大纲，并设计了一些问题来引出旨在羞辱或抹黑持不同政见者的答案。Liu、Ziburis和Sun打算将这些陈述的音频或视频剪辑用于中国针对持不同政见者的宣传材料。
Liu的一名合谋者（下称合谋者）聘请Taylor获取有关在美国居住的多名中国持不同政见者的机密和敏感个人身份信息（包括护照信息、护照照片、飞行记录和移民记录）。Taylor进而委托包括Miller在内的两名国土安全部执法人员获取这些记录。Miller和另一名国土安全部工作人员从一个受限制的联邦执法数据库中获取了上述信息，并将这些记录不当提供给Taylor，后者随后将信息传递给了合谋者。Liu、Ziburis和Sun在代表中国政府行事的同时，利用这些信息针对和骚扰中国持不同政见者。
后来，合谋者在执法部门的指示下打电话给Taylor，声称他收到了司法部的传票，要求提供合谋者与Taylor的通信情况。Taylor指示合谋者不要向政府提供此类信息。Miller和Taylor从一个受限制的联邦执法数据库中获取有关在美国居住的中国持不同政见者的敏感和机密信息，并加以传播。Liu、Ziburis 和 Sun 在针对这些持不同政见者的跨国镇压计划中使用了这些不当提供的信息。
当联邦调查局特工质问Miller和Taylor在不当传播机密和敏感执法信息方面所扮演的角色时，Miller和Taylor均对他们过去的行为撒了谎。此外，Miller在接受联邦调查局讯问时从他的手机中删除了与Taylor的短信，Taylor指示合谋者不要向政府提供证据。
在接受联邦调查局特工讯问时，Taylor谎称他从一位使用“黑色暗网”——很可能是指“暗网”——的朋友那里获得的相关记录。
当联邦调查局特工讯问Miller时，其最初声称与Taylor有零星接触，但自从Taylor退休成为一名私家侦探后，两人就没有讨论过工作问题。在特工告诫Miller要诚实后，Miller承认Taylor向他提供了一些姓名以供他浏览执法数据库，但声称这些姓名不在他的电话中，并在讯问过程中反复提及这一点。联邦调查局特工随后要求Miller同意搜查其手机。Miller同意并最终承认，他为Taylor运行了查询并通过短信将结果发送给Taylor，且Taylor提供了一张礼品卡作为回报。
讯问结束后，联邦调查局特工开始搜查Miller的手机，但无法找到Miller在讯问中提到的Miller和Taylor之间的短信。特工随后致电Miller，询问该等短信是否还在手机中。其确认，该等短信是在“Derrik”这一名称之下，并对特工找不到它们表示惊讶。在联邦调查局特工提醒Miller向联邦执法人员撒谎是犯罪行为后，Miller承认，他在当天早些时候的讯问中删除了与Taylor的文本链，并捏造了之前关于文本链的所有陈述（包括该文本链是否包括Taylor要求的姓名）。
起诉书中的各项指控属于指摘，除非被证明有罪，否则 被告人被推定为无罪。如果罪名成立，Liu将面临最高30年的监禁；Ziburis、Sun和Taylor将面临最高25年的监禁；Miller将面临最高20年的监禁。
联邦调查局为受害者创建了一个网站，用于报告外国政府在美国跟踪、恐吓或攻击人们的行为。如果您认为自己是或曾经是跨国镇压的受害者，请访问https://www.fbi.gov/investigate/counterintelligence/transnational-repression网站。
政府案件由本办公室的国家安全与网络犯罪科处理。助理联邦检察官Alexander A. Solomon和Emily J. Dean在国家安全司反间谍与出口管制科的审判律师Scott Claffee、加利福尼亚州中区联邦检察官办公室助理联邦检察官 Christopher D. Grigg和明尼苏达地区联邦检察官办公室助理联邦检察官Kimberly Svendsen的协助下，对这起案件提起公诉。
被告人：
Fan “Frank” Liu
年龄：62岁
纽约杰里科Matthew Ziburis
年龄：49岁
纽约牡蛎湾Qiang “Jason” Sun
年龄：40岁
中华人民共和国Craig Miller
年龄：48
明尼苏达州Derrick Taylor
年龄：60
加利福尼亚州尔湾市纽约州东区联邦地区法院案卷编号：22-CR-00311 (LDH) (VMS)