Eastern District of New York
Press releases recorded for this federal judicial district.
Five Men Indicted for Crimes Related to Transnational Repression Scheme to Silence Critics of the People’s Republic of China Residing in the United StatesRead the Press Release
A federal grand jury in Brooklyn returned a superseding indictment yesterday charging five defendants, including one current federal law enforcement officer and one retired federal law enforcement officer, with various crimes pertaining to a transnational repression scheme orchestrated on behalf of the Government of the People’s Republic of China (PRC).
Defendants Fan “Frank” Liu, 62, of Jericho, New York; Matthew Ziburis, 49, of Oyster Bay, New York; and Qiang “Jason” Sun, 40, of the PRC were charged in March 2022 with allegedly perpetrating a transnational repression scheme that targeted U.S. residents whose political views and actions are disfavored by the PRC Government. Among other items, these defendants allegedly plotted to destroy the artwork of a PRC national residing in Los Angeles, who was critical of the PRC government and planted surveillance equipment in the artist’s workplace and car to spy on him from the PRC. Liu and Ziburis were arrested pursuant to a criminal complaint in March 2022, while Sun remains at large.
The superseding indictment adds two new defendants, Craig Miller and Derrick Taylor, to the scheme. Miller is a 15-year employee of the Department of Homeland Security (DHS), currently assigned as a deportation officer to DHS’s Emergency Relief Operations in Minneapolis, and Taylor is a retired DHS law enforcement agent who presently works as a private investigator in Irvine, California. Miller and Taylor are charged with obstruction of justice for allegedly destroying evidence after they were approached by FBI agents and asked about their procurement and dissemination of sensitive and confidential information from a restricted federal law enforcement database regarding U.S.-based dissidents from the PRC. Both Miller and Taylor were arrested pursuant to a criminal complaint in June 2022.
“We will defend the rights of people in the United States to engage in free speech and political expression, including views the PRC government wants to silence,” said Assistant Attorney General for National Security Matthew G. Olsen. “As charged, these individuals aided agents of a foreign government in seeking to suppress dissenting voices who have taken refuge here. The defendants include two sworn law enforcement officers who chose to forsake their oaths and violate the law. This indictment is the next step in holding all of these defendants responsible for their crimes.”
“As alleged, this case involves a multifaceted campaign to silence, harass, discredit and spy on U.S. residents for exercising their freedom of speech – aided by a current federal law enforcement officer and a private investigator who provided confidential information about U.S. residents from a restricted law enforcement database, and when confronted about their improper conduct, lied and destroyed evidence,” said U.S. Attorney Breon Peace for the Eastern District of New York. “This office will always work closely with our law enforcement partners to root out corrupt officials in all levels of government and will prosecute those who act on behalf of a hostile foreign state to target the free speech of U.S. residents on American soil.”
“This case exposes attempts by the government of the PRC to suppress dissenting voices within the United States. Actions taken by the defendants – two of which are current or former federal law enforcement officers – demonstrate how the PRC seeks to stalk, intimidate, and silence those who oppose it,” said Assistant Director Alan E. Kohler Jr. of the FBI’s Counterintelligence Division. “The FBI battles transnational repression because it is an evil in its own right, and an assault on the freedoms of an open society. Our community’s safety and our nation’s security were jeopardized by this criminal behavior, and we remain dedicated to combating transnational repression and bringing to justice those that perpetrate it.”
Liu and Ziburis are charged with conspiring to act as agents of the PRC government. Liu, Ziburis and Sun are charged with conspiring to commit interstate harassment and criminal use of a means of identification. Liu and Sun are charged with conspiring to bribe a federal official in connection with their scheme to obtain the tax returns of a pro-democracy activist residing in the United States. Both Miller and Taylor are charged with obstruction of justice, while Taylor is charged with making a false statement to the FBI.
If convicted, Liu faces up to 30 years’ imprisonment; Ziburis, Sun and Taylor face up to 25 years’ imprisonment; and Miller faces up to 20 years’ imprisonment. The defendants will be arraigned at a later date.
As alleged, Liu and Ziburis operated under Sun’s direction and control to discredit pro-democracy PRC dissidents residing in the United States, including those in New York City, California and Indiana. with efforts to disseminate negative information about, and to spy on, stalk, harass and surveil U.S.-based dissidents.
According to the indictment, one of Liu’s co-conspirators (“Co-conspirator”) retained Taylor to obtain personal identification information regarding multiple PRC dissidents residing in the United States, including passport information and photos, and flight and immigration records, which Taylor allegedly tasked to two DHS law enforcement officers, including Miller. As alleged, Miller and the other DHS agent obtained the information from the restricted database and improperly provided it to Taylor, who shared it with the Co-conspirator. Liu, Ziburis and Sun used this information to target and harass these U.S. residents while acting on behalf of the PRC government.
According to court documents, Miller and Taylor both lied about their past conduct when confronted by the FBI. According to the indictment, Miller deleted text messages with Taylor from his phone while being interviewed by the FBI, and Taylor instructed a co-conspirator to withhold evidence from the U.S. government. When interviewed by the FBI, Taylor falsely claimed that he obtained the records in question from a friend who was using the “Black Dark Web” — likely a reference to the dark web.
According to the indictment, the Co-conspirator called Taylor and claimed he received a subpoena from the Department of Justice seeking the Co-conspirator’s communications with Taylor, and Taylor directed the Co-conspirator to withhold such information from the U.S. government.
According to court documents, when interviewed by the FBI, Miller initially claimed to be in sporadic contact with Taylor and said the two did not discuss work matters. After agents admonished Miller to be honest, Miller admitted that Taylor provided him names to run through law enforcement databases. Miller granted consent to the FBI to search his phone, and ultimately admitted that he ran the queries for Taylor and sent the results to Taylor via text message, and that Taylor had provided a gift card in return. Miller then admitted that he deleted the text chain with Taylor during the interview earlier that day and that he fabricated all earlier statements about the text chain, including whether the chain included the names requested by Taylor.
Assistant U.S. Attorneys Alexander A. Solomon and Emily J. Dean for the Eastern District of New York are prosecuting the case with assistance provided by Trial Attorney Scott Claffee of the National Security Division’s Counterintelligence and Export Control Section, Assistant U.S. Attorney Christopher D. Grigg for the Central District of California and Assistant U.S. Attorney Kimberly Svendsen for the District of Minnesota. U.S. Attorney Peace also thanked the U.S. Immigration and Customs Enforcement, Office of Professional Responsibility, for its assistance in the investigation.
The FBI has created a website for victims to report efforts by foreign governments to stalk, intimidate, or assault people in the United States. If you believe that you are or have been a victim of transnational repression, please visit https://www.fbi.gov/investigate/counterintelligence/transnational-repression.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Five Individuals Indicted for Crimes Related to Transnational Repression Scheme to Silence Critics of the People's Republic of China Residing in the United StatesRead the Press Release
Yesterday, a grand jury returned an indictment in federal court in Brooklyn charging five defendants with various crimes pertaining to a transnational repression scheme orchestrated on behalf of the government of the People’s Republic of China (PRC). The case is assigned to the United States District Judge LaShann DeArcy Hall and the defendants’ will be arraigned at a later date.
Three of the defendants—Fan “Frank” Liu, Matthew Ziburis, and Qiang “Jason” Sun—allegedly perpetrated in the transnational repression scheme to target U.S. residents whose political views and actions are disfavored by the PRC government, such as advocating for democracy in the PRC. Among other items, the defendants plotted to destroy the artwork of a PRC national residing in Los Angeles, California that was critical of the PRC government, and planted surveillance equipment in the artist’s workplace and car to spy on him from the PRC. Liu and Ziburis were arrested pursuant to a criminal complaint in March 2022, while Sun remains at large.
There are two new defendants charged in the scheme, Craig Miller and Derrick Taylor. Miller is a 15-year employee of the Department of Homeland Security (DHS), currently assigned as a Deportation Officer to DHS's Enforcement and Removal Operations in Minneapolis, Minnesota; and Taylor is a retired DHS law enforcement agent who presently works as a private investigator in Irvine, California. The charges against Miller and Taylor pertain to their alleged obstruction of justice, including by destroying evidence, after they were approached by agents with the Federal Bureau of Investigation (FBI) and asked about their procurement and dissemination of sensitive and confidential information from a restricted federal law enforcement database regarding U.S.-based dissidents from the PRC. This information was used by Liu and Sun in the transnational repression scheme. Both Miller and Taylor were arrested pursuant to a criminal complaint in June 2022.
Breon Peace, United States Attorney for the Eastern District of New York, Matthew G. Olsen, Assistant Attorney General for National Security, and Michael J. Driscoll, Assistant Director-in-Charge, FBI, New York Field Office, announced the arrests and charges.
“As alleged, this case involves a multifaceted campaign to silence, harass, discredit and spy on U.S. residents for exercising their freedom of speech – aided by a current federal law enforcement officer and a private investigator who provided confidential information about U.S. residents from a restricted law enforcement database, and when confronted about their improper conduct, lied and destroyed evidence,” stated United States Attorney Peace. “This Office will always work closely with our law enforcement partners to root out corrupt officials in all levels of government and will prosecute those who act on behalf of a hostile foreign state to target the free speech of U.S. residents on American soil.”
Mr. Peace thanked the U.S. Immigration and Customs Enforcement, Office of Professional Responsibility, for its assistance in the investigation.
“We will defend the rights of people in the United States to engage in free speech and political expression, including views the PRC government wants to silence” said Assistant Attorney General for National Security Olsen. “As charged, these individuals aided agents of a foreign government in seeking to suppress dissenting voices who have taken refuge here. The defendants include two sworn law enforcement officers who choose to forsake their oaths and violate the law. This indictment is the next step in holding all of these defendants responsible for their crimes.”
“As alleged in the indictment, the defendants committed various acts in furtherance of a transnational repression scheme aimed at silencing the free speech of PRC dissidents on U.S. soil. One of the defendants was even a federal law enforcement officer who allegedly accessed government databases to aid the illegal campaign in direct conflict with his duty to protect the rights of all U.S. residents. Today’s action is the latest example of the FBI’s commitment to aggressively pursue those who attempt to put the interests of hostile foreign governments above those of our residents,” stated FBI Assistant Director-in-Charge Driscoll.
Defendant Overview
According to court documents, Liu, a resident of Jericho, Long Island, is president of a purported media company based in New York City; Ziburis, a resident of Oyster Bay, Long Island, is a former correctional officer for the State of Florida and a bodyguard; Sun is a PRC-based employee of an international technology company; Miller is a 15-year employee of the Department of Homeland Security (DHS), currently assigned as a Deportation Officer to DHS’s Emergency Relief Operations in Minneapolis, Minnesota; and Taylor is a retired DHS law enforcement agent who presently works as a private investigator in Irvine, California.
As alleged, Liu and Ziburis are charged with conspiring to act as agents of the PRC government. Liu, Ziburis, and Sun are charged with conspiring to commit interstate harassment and criminal use of a means of identification. Liu and Sun are charged with conspiring to bribe a federal official in connection with their scheme to obtain the tax returns of a pro-democracy activist residing in the United States. Both Miller and Taylor are charged with obstruction of justice, while Taylor is charged with making a false statement to the FBI.
The Scheme
As set forth in court filings, Liu and Ziburis operated under Sun’s direction and control to discredit pro-democracy PRC dissidents residing in the United States—including in New York City, California, and Indiana—by spying on them and disseminating negative information about them. For example, at Sun’s direction, Liu paid a private investigator in Queens to bribe an Internal Revenue Service employee to obtain the federal tax returns of one of the dissidents. The private investigator was cooperating with law enforcement, and no Internal Revenue Service employee received a bribe payment. The defendants planned to publicly disclose the dissident’s potential tax liabilities to discredit him. The co-conspirators also made plans to destroy the artwork of a dissident artist whose work is critical of the PRC government, and the artist’s sculpture depicting PRC President Xi Jinping as a coronavirus molecule was demolished in the Spring of 2021. Sun paid both Liu and Ziburis for these efforts to stalk, harass, and surveil dissidents residing in the United States.
As part of their efforts, Liu, Ziburis, and Sun electronically spied on the pro-democracy activists. For example, posing as an art dealer interested in purchasing the artwork of the dissident artist, Ziburis secretly installed surveillance cameras and GPS devices at the dissident’s workplace and in his car. While in the PRC, Sun watched the live video feed and location data from these devices. Liu, Ziburis, and Sun made similar plans to install surveillance equipment at the residences and on the vehicles of two other dissidents. Liu and Ziburis planned to gain access to one such residence by posing as a member of an international sports committee.
Liu, Ziburis, and Sun also planned to interview the dissidents in mock media sessions, using the cover of Liu’s purported media organization. Sun provided outlines for these fake interviews and designed questions to elicit answers that were intended to humiliate or discredit the dissidents. Liu, Ziburis, and Sun intended that audio or video clips of these statements could be used in PRC propaganda materials targeting the dissidents.
One of Liu’s co-conspirators (Co-conspirator) retained Taylor to obtain confidential and sensitive personal identification information regarding multiple PRC dissidents residing in the United States, including passport information, passport photos, flight records, and immigration records. In turn, Taylor tasked two DHS law enforcement officers, including Miller, to obtain these records. Miller and the other DHS agent obtained the information from a restricted federal law enforcement database and improperly provided the records to Taylor, who then passed the information to the Co-conspirator. Liu, Ziburis, and Sun used this information to target and harass the PRC dissidents, while acting on behalf of the PRC government.
Later, the Co-conspirator, acting at the direction of law enforcement, called Taylor and claimed that he had received a subpoena from the Department of Justice seeking the Co-conspirator’s communications with Taylor. Taylor directed the Co-conspirator to withhold such information from the government. Miller and Taylor procured and disseminated sensitive and confidential information from a restricted federal law enforcement database regarding U.S.-based dissidents from the PRC. This improperly provided information was used by Liu, Ziburis, and Sun in the transnational repression scheme targeting these very dissidents.
When FBI special agents confronted Miller and Taylor about their roles in improperly disseminating confidential and sensitive law enforcement information, Miller and Taylor both lied about their past conduct. Additionally, Miller deleted text messages with Taylor from his phone while being interviewed by the FBI, and Taylor instructed a co-conspirator to withhold evidence from the government.
When interviewed by FBI special agents, Taylor falsely claimed that he had obtained the records in question from a friend who was using the “Black Dark Web”—likely a reference to the “Dark Web.”
When FBI special agents interviewed Miller, he initially claimed to be in sporadic contact with Taylor, but that the two did not discuss work matters since Taylor’s retirement to become a private investigator. After agents admonished Miller to be honest, Miller admitted that Taylor had provided him names to run through law enforcement databases but claimed that the names were not in his phone, which he repeatedly consulted and referred to during the interview. FBI special agents then asked Miller for consent to search the phone. Miller granted consent and ultimately admitted that he had run the queries for Taylor and sent the results to Taylor via text message, and that Taylor had provided a gift card in return.
Following the interview, FBI special agents began to search Miller’s phone but were unable to find the text messages between Miller and Taylor that Miller had referred to during the interview. Agents then called Miller to ask whether the text messages were still in the phone. He confirmed that they were under the name “Derrick” and expressed surprise that the agents could not find them. After FBI agents reminded Miller that it is a crime to lie to federal law enforcement officers, Miller admitted that he had deleted the text chain with Taylor during the interview earlier that day and that he had fabricated all earlier statements about the text chain, including whether the chain included the names requested by Taylor.
The charges in the indictment are allegations, and the defendants are presumed innocent unless and until proven guilty. If convicted of the charges, Liu faces up to 30 years’ imprisonment; Ziburis, Sun, and Taylor face up to 25 years’ imprisonment; and Miller faces up to 20 years’ imprisonment.
The FBI has created a website for victims to report efforts by foreign governments to stalk, intimidate, or assault people in the United States. If you believe that you are or have been a victim of transnational repression, please visit https://www.fbi.gov/investigate/counterintelligence/transnational-repression.
The government’s case is being handled by the Office’s National Security and Cybercrime Section. Assistant U.S. Attorneys Alexander A. Solomon and Emily J. Dean are prosecuting the case with assistance provided by Trial Attorney Scott Claffee of the National Security Division’s Counterintelligence and Export Control Section, Assistant U.S. Attorney Christopher D. Grigg of the U.S. Attorney’s Office for the Central District of California, and Assistant U.S. Attorney Kimberly Svendsen of the U.S. Attorney’s Office for the District of Minnesota.
The Defendants:
FAN "FRANK" LIU
Age: 62
Jericho, New YorkMATTHEW ZIBURIS
Age: 49
Oyster Bay, New YorkQIANG “JASON” SUN
Age: 40
People’s Republic of ChinaCRAIG MILLER
Age: 48
Hastings, MinnesotaDERRICK TAYLOR
Age: 60
Irvine, CaliforniaE.D.N.Y. Docket No. 22-CR-00311 (LDH) (VMS)
Brooklyn Man Sentenced to 125 Months in Prison for Stabbing Pharmacy Employee and Attempted RobberyRead the Press Release
Earlier today, in federal court in Brooklyn, Rayvaughn Williams was sentenced by United States District Judge Nicholas G. Garaufis to 125 months’ imprisonment following his guilty plea to attempted Hobbs Act robbery in connection with his August 12, 2019 attempt to rob a pharmacy in Canarsie, Brooklyn, during which Williams repeatedly stabbed a pharmacy employee.
Breon Peace, United States Attorney for the Eastern District of New York, John B. DeVito, Special Agent-in-Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and Keechant L. Sewell, Commissioner, New York City Police Department (NYPD), announced the sentence.
“Rayvaughn Williams tried to rob a neighborhood pharmacy and ended up senselessly, viciously attacking an innocent employee merely because he could not open the cash register fast enough,” stated United States Attorney Peace. “Today’s sentence sends a message that those who engaged in violence in our communities will be held accountable.”
“This sentencing brings yet another violent criminal to justice,” stated ATF New York Special Agent-in-Charge DeVito. “This atrocious and unwarranted violent attack on an innocent person is unacceptable. Fortunately, the victim survived due to the quick response of the EMTs and the investigative efforts of our partners at NYPD’s Brooklyn Robbery Squad. ATF will continue to work with our partners to keep our communities safe.”
“Violence will never be tolerated in our city,” stated NYPD Commissioner Sewell. “And actions must have consequences. Today’s sentence removes a career criminal with multiple arrests for armed robbery from our streets, and the people of Brooklyn can breathe a little easier. I want to thank the U.S. Attorney’s Office for the Eastern District of New York, the New York Field Division of the Bureau of Alcohol, Tobacco, and Firearms, and all of our own officers and detectives who brought this case to a successful conclusion.”
According to court filings and statements made by the defendant at his guilty plea proceeding, on August 12, 2019, Williams entered the Canarsie Plaza Pharmacy and claimed he was there to pick up a prescription. When the employee could not find a record of the prescription, Williams removed a knife from a plastic bag he was carrying and demanded money. When the employee tried but failed to open the register, Williams vaulted over the counter and stabbed the employee repeatedly. The employee was seriously wounded, but survived the attack.
Assistant United States Attorney Robert M. Pollack is in charge of the prosecution.
The Defendant:
RAYVAUGHN WILLIAMS
Age: 26
Brooklyn, New YorkE.D.N.Y. Docket No.: 20-CR-273 (NGG)
Colombian Woman Sentenced to 10 Years and $5 Million Forfeiture for NarcotraffickingRead the Press Release
Earlier today, in federal court in Brooklyn, Hilda Maria Gonzalez Lopez, also known as “La Boyaca” and “Daniela,” who aligned herself with powerful members of Los Rastrojos, a breakoff group of the violent arm of the Norte Valle Cartel, was sentenced by United States District Judge I. Leo Glasser to 10 years in prison and ordered to pay $5 million in forfeiture following her guilty plea for participating in a conspiracy to internationally distribute cocaine. In her October 2021 plea agreement, Gonzalez Lopez stipulated that she was responsible for distributing more than 450 kilograms of cocaine and agreed to forfeit $5,000,000.
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 Frank A. Tarentino III, Special Agent-in-Charge, Drug Enforcement Administration, New York Division (DEA), announced the sentence.
“For years, the defendant profited from trafficking cocaine and operating a ‘collection office,’ which relied on hitmen to collect drug debts, and she did so without regard for the harm she inflicted on communities stretching from Colombia to the United States,” stated United States Attorney Breon Peace. “Today’s sentencing demonstrates the results of the Department of Justice’s ongoing commitment to working with our international partners to dismantle destructive transcontinental drug trafficking organizations.”
Mr. Peace extended his appreciation to the New York City Police Department (NYPD), New York State Police (NYSP), Justice Department’s Office of International Affairs, Colombian law enforcement authorities, and the Criminal Division’s Narcotic and Dangerous Drug Section (NDDS) Judicial Attachés in Bogotá, Colombia who assisted in the apprehension and extradition of the defendant.
“Gonzalez Lopez was at the helm of a narcotrafficking operation who arranged cocaine shipments, negotiated ‘taxes’ with other narcotraffickers, and employed hitmen to collect debts. Today’s sentencing helps to ensure this lucrative and violent organization saw their final delivery – justice,” said HSI Acting Special Agent in Charge Patel. “HSI and our partners will continue to leverage our international reach to aggressively pursue drug traffickers wherever they operate.”
“Using intimidation and fear, Hilda Maria Gonzalez Lopez made millions of dollars exporting loads of cocaine from Colombia to the United States,” said DEA Special Agent-in-Charge Tarentino. “The DEA leaves no stone unturned, and this arrest signifies our resolve to bring those responsible for flooding our streets with poison to justice. I commend the diligent work by the U.S. Attorney’s Office Eastern District of New York and our local, state, federal, and international law enforcement partners.”
Los Rastrojos
In approximately the early 1990’s, a group of narcotics traffickers based in the Norte Valle del Cauca region of Colombia, located near Colombia’s west coast, began to dominate the cocaine trade in Colombia, and became known as the “Norte Valle Cartel.” Between 1990 and 2006, the Norte Valle Cartel was responsible for the exportation to the United States of more than one million kilograms of cocaine with a wholesale value exceeding several billion dollars.
In the early 2000s, high-ranking members of the Norte Valle Cartel’s armed contingent—which was responsible for assassinations, kidnappings, and the collection of drug debts through violence or the threat of violence—broke off to form Los Rastrojos. After 2008, Javier Antonio Calle Serna (Calle Serna) took control of the organization. Under his leadership, Los Rastrojos acted as a paramilitary group with over 1,500 members and took control of several provinces of Colombia. In those areas, Los Rastrojos corrupted government officials, sanctioned violence, and “taxed” drug traffickers who operated in the cartel’s territory.
The Defendant’s Conduct
Between 2005 and 2011, according to court filings, Gonzalez Lopez was directly involved in coordinating the shipment and distribution of cocaine and leveraged her relationship with powerful and violent narcotraffickers, including Calle Serna. Gonzalez Lopez began brokering her own multi-hundred-kilogram shipments of cocaine from Colombia to Mexico and Central America for ultimate distribution in the United States.
Gonzalez Lopez coordinated drug transportation routes and paid export “taxes” to the Los Rastrojos. She also used her relationship with Calle Serna to negotiate lower export taxes and maintain control of a drug debt collection operation in which she employed collectors or hitmen to collect drug debts, for which she received a percentage of the recovered debt as compensation.
During these six years, Gonzalez Lopez was personally responsible for at least 450 kilograms of cocaine, which yielded her profits of at least $5,000,000.
On July 12, 2019, the defendant was arrested in Colombia at the request of the United States and was extradited to the United States on March 5, 2021.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach.
Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF
The government’s case is being handled by the Office’s International Narcotics and Money Laundering Section. Assistant United States Attorneys Nomi Berenson and Robert M. Pollack are in charge of the prosecution.
The Defendant:
HILDA MARIA GONZALEZ LOPEZ (also known as “La Boyaca” and “Daniela”)
Age: 47
Boyaca, ColombiaE.D.N.Y. Docket No. 16-CR-379 (ILG)
Brooklyn Man Sentenced to 72 Months in Prison for $1.9 Million Paycheck Protection Program FraudRead the Press Release
Earlier today, in federal court in Brooklyn, Leon Miles was sentenced by United States District Judge Brian M. Cogan to 72 months in prison following his guilty plea to making false statements in an application for over $1.9 million from the Paycheck Protection Program (PPP), which Congress created as part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The court also ordered forfeiture in the amount of $1,904,593, including the 2020 Bentley that the government seized, and restitution in the amount of $598,299.39 to the authorized lender.
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); Amaleka McCall-Brathwaite, Special Agent-in-Charge, Office of the Inspector General of the U.S. Small Business Administration, Eastern Region Office (SBA-OIG); and Thomas M. Fattorusso, Special Agent-in-Charge, Internal Revenue Service-Criminal Investigation, New York (IRS-CI), announced the sentence.
“Leon Miles selfishly enriched himself by defrauding a program designed to alleviate the economic suffering caused by the COVID-19 pandemic,” stated United States Attorney Peace. “The defendant stole nearly $2 million dollars that was intended to keep struggling businesses afloat and honest workers employed, and he spent those funds on personal luxuries. This Office and our agency partners will continue working to bring to justice those fraudsters who try to take advantage of a national emergency, and recover every dollar that they stole from the government.”
“Leon Miles indulged himself at the expense of U.S. taxpayers by both defrauding the Paycheck Protection Program and victimizing those business owners who legitimately needed the benefits. Today’s sentencing is a fair response to Miles’s criminal behavior and he will now face justice behind bars,” stated IRS-CI Special Agent-in-Charge Fattorusso.
“OIG works tirelessly to identify persons seeking to use falsified information to selfishly exploit SBA programs meant to uplift the nation’s small businesses,” said SBA OIG Eastern Region Special Agent in Charge McCall-Brathwaite. “Our Office will remain relentless in the pursuit of fraudsters who seek to exploit SBA’s vital economic programs. I want to thank the U.S. Attorney’s Office and our law enforcement partners for their dedication and commitment to seeing justice served.”
The CARES Act is a federal law enacted on March 29, 2020 to provide emergency financial assistance in connection with economic effects of the COVID-19 pandemic. One source of relief provided by the CARES Act was the allocation of funds for the issuance of forgivable loans to small businesses for job retention and certain other expenses through the PPP. The PPP allowed qualifying small businesses to receive unsecured loans on favorable terms, which they were required to use for specified expenses, including payroll costs, interest on mortgages, rent and utilities. The PPP provided for forgiveness of the loan if recipient businesses spent the proceeds on these specified expenses within a limited time period and used a certain percentage for payroll costs.
In May 2020, Miles applied for a $1,904,593.00 PPP loan on behalf of a limited liability company he owns in Brooklyn, falsely claiming that the company had 50 employees and a total average monthly payroll of $761,838.00. In support of these claims, Miles submitted fraudulent personal and business tax returns and tax forms that were never filed with the IRS. In fact, he reported to the IRS no taxable income during the relevant period, and his company filed no tax returns and reported no wages paid to employees. The loan proceeds were disbursed to Miles’s personal savings account, and within days he had withdrawn hundreds of thousands of dollars, a portion of which he used to purchase a 2020 Bentley Continental for approximately $250,000 and a 2020 Cadillac Escalade for approximately $100,000. The government seized the 2020 Bentley Continental, and the insurance proceeds of the 2020 Cadillac Escalade, which had been totaled. Additionally, approximately $1.3 million of the loan proceeds were frozen and returned to the authorized lender.
The government’s case is being prosecuted by Assistant United States Attorney Robert M. Pollack. Assistant United States Attorney Brian D. Morris of the Office’s Asset Recovery Section is handling forfeiture matters.
The Defendant:
LEON MILES
Age: 53
Brooklyn, New YorkE.D.N.Y. Docket No.: 21-CR-221 (BMC)
Justice Department Announces Investigation of New York City Police Department's Special Victims DivisionRead the Press Release
Kristen Clarke, Assistant Attorney General for the Justice Department’s Civil Rights Division, Damian Williams, the United States Attorney for the Southern District of New York, and Breon Peace, the United States Attorney for the Eastern District of New York, announced today a civil pattern or practice investigation into the Special Victims Division (SVD) of the New York City Police Department (NYPD). The investigation will assess whether the SVD engages in a pattern or practice of gender-biased policing. The investigation will include a comprehensive review of the policies, procedures, and training for SVD investigations of sexual assault crimes, including how SVD interacts with survivors and witnesses, collects evidence, and completes investigations; any steps NYPD has taken to address deficiencies in its handling of sexual assault crimes; how SVD allocates staffing and other resources; and the services and support offered to survivors of sexual assault. As part of this investigation, the Justice Department officials will reach out to community groups and members of the public to learn about their experiences with SVD.
Prior to the announcement, Justice Department (Department) officials notified Mayor Eric Adams, NYPD Commissioner Keechant L. Sewell, and NYC Corporation Counsel Sylvia O. Hinds-Radix, who have pledged to cooperate with the investigation.
Assistant Attorney General Kristen Clarke said: “Survivors of sexual assault should expect effective, trauma-informed and victim-centered investigations by police departments. Based on information provided to the Justice Department, we find significant justification to investigate whether the NYPD’s Special Victims Division engages in a pattern or practice of gender-biased policing. Investigations into sexual assault that comply with the Constitution promote accountability, enhance public safety and foster community trust.”
EDNY U.S. Attorney Breon Peace said: “Respectful, thorough, and complete investigations of sexual assaults are fundamental to a well-functioning justice system. Over the last several months, we have learned concerning information from a variety of sources of historical issues about the way the Special Victims Division has conducted its investigations for many years. Our review is intended to ensure that, going forward, survivors of sexual assault in New York City receive fair and just treatment in the criminal justice system, and as a result, those who engage in sexual violence are held accountable. We appreciate that the NYPD has already taken steps to address these concerns.”
SDNY U.S. Attorney Damian Williams said: “Victims of sex crimes deserve the same rigorous and unbiased investigations of their cases that the NYPD affords to other categories of crime. Likewise, relentless and effective pursuit of perpetrators of sexual violence, unburdened by gender stereotypes or differential treatment, is essential to public safety. We look forward to working with our partners in EDNY and the Civil Rights Division to assess the NYPD’s practices in this area.”
The Department received information alleging deficiencies at SVD that have persisted for more than a decade, depriving survivors and the public of the prompt, thorough, and effective investigations needed to protect public safety. These deficiencies allegedly include failing to conduct basic investigative steps and instead shaming and abusing survivors and re-traumatizing them during investigations.
The investigation is being conducted pursuant to the Violent Crime Control and Law Enforcement Act of 1994, which prohibits state and local governments from engaging in a pattern or practice of conduct by law enforcement officers that deprives individuals of rights protected by the Constitution or federal law. The Act allows the Justice Department to remedy such misconduct through civil litigation. The Department will be assessing law enforcement practices under the Fourteenth Amendment to the United States Constitution, as well as the Safe Streets Act of 1968.
The Civil Rights Unit in the Civil Division of the U.S. Attorney’s Office for the Southern District of New York, the Civil Rights Team in the Civil Division of the U.S. Attorney’s Office for the Eastern District of New York, and the Special Litigation Section of the Justice Department’s Civil Rights Division will jointly conduct this investigation. Individuals with relevant information are encouraged to contact the Department via email at [email protected] or by calling 212-637-2746. Individuals can also report civil rights violations regarding this or other matters using the Civil Rights Division’s new reporting portal, available at www.civilrights.justice.gov, to the Eastern District of New York at https://www.justice.gov/usao-edny/civil-rights, or to the Southern District of New York at https://www.justice.gov/usao-sdny/civil-rights.
Information specific to the Justice Department’s Civil Rights Division’s Police Reform Work can be found here: https://www.justice.gov/crt/file/922421/download. The Department’s updated guidance on improving law enforcement response to sexual assault and domestic violence can be found here: Improving Law Enforcement Response to Sexual Assault and Domestic Violence by Identifying and Preventing Gender Bias (justice.gov).
Additional information about the U.S. Attorney’s Office for the Eastern District of New York is available on its website at https://www.justice.gov/usao-edny. Additional information about the U.S. Attorney’s Office for the Southern District of New York is available on its website at https://www.justice.gov/usao-sdny. Additional information about the Civil Rights Division is available on its website at www.justice.gov/crt.
Justice Department Announces Investigation of New York City Police Department’s Special Victims DivisionRead the Press Release
The Justice Department announced today that it has opened a civil pattern or practice investigation into the Special Victims Division (SVD) of the New York City Police Department (NYPD). The investigation will assess whether the SVD engages in a pattern or practice of gender-biased policing. The investigation will include a comprehensive review of the policies, procedures and training for SVD investigations of sexual assault crimes, including how SVD interacts with survivors and witnesses, collects evidence and completes investigations; any steps NYPD has taken to address deficiencies in its handling of sexual assault crimes; how SVD allocates staffing and other resources; and the services and support offered to survivors of sexual assault. As part of this investigation, the Justice Department officials will reach out to community groups and members of the public to learn about their experiences with SVD.
Prior to the announcement, Justice Department officials notified Mayor Eric Adams, NYPD Commissioner Keechant L. Sewell, and NYC Corporation Counsel Sylvia O. Hinds-Radix, who have pledged to cooperate with the investigation.
“Survivors of sexual assault should expect effective, trauma-informed and victim-centered investigations by police departments,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Based on information provided to the Justice Department, we find significant justification to investigate whether the NYPD’s Special Victims Division engages in a pattern or practice of gender-biased policing. Investigations into sexual assault that comply with the Constitution promote accountability, enhance public safety and foster community trust.”
“Respectful, thorough and complete investigations of sexual assaults are fundamental to a well-functioning justice system,” said U.S. Attorney Breon Peace for the Eastern District of New York. “Over the last several months, we have learned concerning information from a variety of sources of historical issues about the way the Special Victims Division has conducted its investigations for many years. Our review is intended to ensure that, going forward, survivors of sexual assault in New York City receive fair and just treatment in the criminal justice system, and as a result, those who engage in sexual violence are held accountable. We appreciate that the NYPD has already taken steps to address these concerns.”
“Victims of sex crimes deserve the same rigorous and unbiased investigations of their cases that the NYPD affords to other categories of crime,” said U.S. Attorney Damian Williams for the Southern District of New York. “Likewise, relentless and effective pursuit of perpetrators of sexual violence, unburdened by gender stereotypes or differential treatment, is essential to public safety. We look forward to working with our partners in EDNY and the Civil Rights Division to assess the NYPD’s practices in this area.”
The department received information alleging deficiencies at SVD that have persisted for more than a decade, depriving survivors and the public of the prompt, thorough and effective investigations needed to protect public safety. These deficiencies allegedly include failing to conduct basic investigative steps and instead shaming and abusing survivors and re-traumatizing them during investigations.
The investigation is being conducted pursuant to the Violent Crime Control and Law Enforcement Act of 1994, which prohibits state and local governments from engaging in a pattern or practice of conduct by law enforcement officers that deprives individuals of rights protected by the Constitution or federal law. The act allows the Justice Department to remedy such misconduct through civil litigation. The department will be assessing law enforcement practices under the Fourteenth Amendment to the U.S. Constitution, as well as the Safe Streets Act of 1968.
The Special Litigation Section of the Justice Department’s Civil Rights Division, the Civil Rights Unit in the Civil Division of the U.S. Attorney’s Office for the Southern District of New York, and the Civil Rights Team in the Civil Division of the U.S. Attorney’s Office for the Eastern District of New York will jointly conduct this investigation. Individuals with relevant information are encouraged to contact the department via email at [email protected] or by calling 212-637-2746. Individuals can also report civil rights violations regarding this or other matters using the Civil Rights Division’s new reporting portal, available at www.civilrights.justice.gov, to the Eastern District of New York at https://www.justice.gov/usao-edny/civil-rights or to the Southern District of New York at https://www.justice.gov/usao-sdny/civil-rights.
Information specific to the Justice Department’s Civil Rights Division’s police reform work can be found here: https://www.justice.gov/crt/file/922421/download. The department’s updated guidance on improving law enforcement response to sexual assault and domestic violence can be found here: Improving Law Enforcement Response to Sexual Assault and Domestic Violence by Identifying and Preventing Gender Bias (justice.gov).
Additional information about the U.S. Attorney’s Office for the Eastern District of New York is available on its website at https://www.justice.gov/usao-edny. Additional information about the U.S. Attorney’s Office for the Southern District of New York is available on its website at https://www.justice.gov/usao-sdny. Additional information about the Civil Rights Division is available on its website at www.justice.gov/crt.
Justice Department Announces Additional Distribution of Approximately $92 Million to Victims in FIFA Corruption CaseRead the Press Release
The Department of Justice announced today a further distribution of approximately $92 million in compensation for losses suffered by FIFA, the world organizing body of soccer; CONCACAF, the confederation responsible for soccer governance in North and Central America, among other jurisdictions; CONMEBOL, the confederation responsible for soccer governance in South America; and various constituent national soccer federations (collectively, the “Victims”).
The funds, which were remitted following the Justice Department’s recognition of losses and grant of remission up to a total of $201 million in August 2021, were forfeited to the United States in the Eastern District of New York as part of the government’s long-running investigation and prosecution of corruption in international soccer. To date, the prosecutions have resulted in charges against more than 50 individual and corporate defendants from more than 20 countries, primarily in connection with the offer and receipt of bribes and kickbacks paid by sports marketing companies to soccer officials in exchange for the media and marketing rights to various soccer tournaments and events and the laundering of those payments.
“From the beginning of the FIFA investigation and prosecutions, one of the department’s primary goals has been to make the victims whole,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “The department has used every tool at its disposal to make this a reality, while depriving the perpetrators of the proceeds of their crimes. This distribution of approximately $92 million as compensation for losses suffered highlights the importance of asset forfeiture as a critical tool in this endeavor.”
“Today’s distribution of more than $80 million underscores our commitment to returning money obtained through the corruption and fraud prosecuted in this case to the victims of that corruption, where it will be used to benefit the sport,” said U.S. Attorney Breon Peace for the Eastern District of New York. “Over much of the past decade, this investigation and prosecution has concentrated on bringing wrongdoers to justice and recovering ill-gotten gains. Our office, working in collaboration with our law enforcement partners and colleagues in the Department of Justice, will continue our work to compensate victims of crime.”
“There was an extraordinary amount of money flowing between corrupt officials and businesses in this massive scheme,” said Assistant Director in Charge Michael J. Driscoll of the FBI’s New York Field Office. “It is gratifying to know assets seized from the criminals involved will be distributed to groups in need of the money, one specifically focused on educating and safeguarding football for women and girls. The silver lining is that some good will come from the rampant greed uncovered in this investigation.”
“As the distributions to victims have demonstrated, IRS-CI and our law enforcement partners will leave no stones unturned when it comes to conducting investigations involving financial crimes,” said Special Agent in Charge Ryan L. Korner of IRS-Criminal Investigation (IRS-CI) Los Angeles. “Not only have dozens of individuals been brought to justice through the course of the investigation, but the additional $92 million will be returned in full to the victims to help compensate them for the injuries caused by this corruption.”
On May 27, 2015, an indictment was unsealed charging 14 FIFA officials and sports marketing executives with racketeering, honest services wire fraud and money laundering offenses, among others. On Dec. 3, 2015, a superseding indictment was unsealed charging an additional 16 FIFA officials with similar crimes. During the course of the prosecutions, 27 individual defendants have pleaded guilty to their roles in the charged crimes. In December 2017, two former FIFA officials, Juan Ángel Napout, of Paraguay, and José Maria Marin, of Brazil, were convicted after trial of racketeering conspiracy and related offenses. Four corporate entities have pleaded guilty and others, including banks, have acknowledged their roles in criminal conduct through deferred prosecution or non-prosecution agreements.
As part of these proceedings, many of the defendants were ordered to forfeit assets obtained through their criminal activity. Under federal law, the Department of Justice has the authority to distribute the proceeds of forfeited assets through the remission process to victims of crimes, including to the soccer organizations that employed and were defrauded by the corrupt soccer executives.
FIFA, CONCACAF, and CONMEBOL have committed to distributing funds received through the remission process, including $32.3 million previously remitted in August 2021, to and through a newly created World Football Remission Fund (the “Fund”) focused on women’s/girl’s football (soccer), education, safeguarding, youth programs, community outreach, and humanitarian needs. The Fund has been established under the FIFA Foundation, an independent foundation that uses soccer, and sport in general, as a tool for social development. The terms of the Fund provide for oversight and independent audit measures to ensure remitted funds are distributed appropriately.
Assistant U.S. Attorneys Samuel P. Nitze, M. Kristin Mace, Victor A. Zapana, Brian D. Morris, and Kaitlin T. Farrell are in charge of the prosecution, petition, solicitation, and providing recommendations on the victims’ petitions. Assistant U.S. Attorney Lauren H. Elbert and Trial Attorney Christian Nauvel and former Trial Attorney Michael Grady of the Money Laundering and Asset Recovery Section joined in the investigation and prosecution of the banks.
The Justice Department, through the Asset Forfeiture Program, works diligently to restore lost funds to victims of crime. The victim compensation payments in the FIFA case would not have been possible without the extraordinary efforts of the Department of Justice Criminal Division’s Money Laundering and Asset Recovery Section, which reviewed and approved the victims’ petition for remission; the FBI’s New York Field Office; and the IRS-CI.
Female MS-13 Gang Associate Pleads Guilty to 2019 Murder of 15-Year-Old in Central IslipRead the Press Release
Earlier today, in federal court in Central Islip, Lidia DelCarmen-Rodriguez, an associate of the Leeward Locos Salvatruchas clique of La Mara Salvatrucha, also known as the MS-13, a transnational criminal organization, pleaded guilty to aiding and abetting the use of a firearm, which caused the death of 15-year-old Jasson Medrano-Molina, on August 7, 2019 in Central Islip. The proceeding was held before United States Circuit Judge Joseph F. Bianco.
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.
“The defendant today admitted that she helped carry out a despicable crime by luring a 15-year-old boy to his violent death as part of the MS-13 gang’s agenda to attack and kill their rivals,” stated United States Attorney Peace. “It is my sincere hope that the family of this young victim can find some solace in knowing that the individuals responsible for this crime have been brought to justice. This Office, in partnership with the Long Island Gang Task Force, will continue to work tirelessly to prevent these senseless killings and eliminate gang violence that endangers our communities.”
“The senseless violence that MS-13 carries out is incomprehensible and we will continue to dedicate resources to and work with our law enforcement partners to hold these gang members accountable,” stated SCPD Commissioner Harrison. “This attack had the potential to take even more lives and we must send a message to this criminal organization, that no matter your age, if you act like an adult, you will pay the price as one.”
Mr. Peace thanked the Suffolk County District Attorney’s Office for its assistance with the prosecution.
According to court filings and statements by the defendant at the guilty plea proceeding, in July and August 2019, the defendant and other MS-13 members and associates were seeking to identify, attack and kill individuals whom they believed were rival gang members in an effort to elevate their own positions in the gang. The defendant and her co-conspirators targeted several individuals, including Medrano-Molina, who were suspected of being members of the rival 18th Street gang. In the early morning hours of August 7, 2019, she lured Medrano-Molina and two other individuals to a secluded wooded area in Central Islip, where two of her co-conspirators, who were armed with a .40 caliber handgun and a baseball bat, were waiting. Upon realizing the ambush, Medrano-Molina and the other two individuals ran away. Medrano-Molina was pursued, and fatally shot multiple times at close range. The other two individuals were able to escape unharmed.
DelCarmen-Rodriguez is now 19 years old, and was 16 years old at the time of the Medrano-Molina murder. She was initially charged by complaint on August 21, 2019, and, thereafter, a juvenile information on September 20, 2019, both of which were both filed under seal in the Eastern District of New York. A juvenile transfer hearing was held on December 14, 2021, and she was ultimately transferred to adult status by order of the Court, dated January 26, 2022. In connection with her plea today, the defendant waived indictment and a Superseding Information, charging her as an adult, was filed publicly.
In October 2021, co-conspirator Jose Omar Sorto Portillo, also a member of the Leeward Locos Salvatruchas clique of MS-13, pleaded guilty to murder in aid of racketeering for his participation in the murder of Medrano-Molina. He is currently awaiting sentencing.
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 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, Megan E. Farrell, and Special Assistant United States Attorney Kathleen Kearon are in charge of the prosecution.
The Defendant:
LIDIA DELCARMEN-RODRIGUEZ
Age: 19
Central Islip, New YorkE.D.N.Y. Docket No. 19-CR-431 (S-1)(JFB)
Department of Justice Announces Additional Distribution of $92 Million to Victims in FIFA Corruption CaseRead the Press Release
The Department of Justice announced today a further distribution of approximately $92 million in compensation for losses suffered by FIFA, the world organizing body of soccer; CONCACAF, the confederation responsible for soccer governance in North and Central America, among other jurisdictions; CONMEBOL, the confederation responsible for soccer governance in South America; and various constituent national soccer federations (collectively, the “Victims”). The funds, which were remitted following the department’s recognition of losses and grant of remission up to a total of $201 million in August 2021, were forfeited to the United States in the Eastern District of New York as part of the government’s long-running investigation and prosecution of corruption in international soccer. To date, the prosecutions have resulted in charges against more than 50 individual and corporate defendants from more than 20 countries, primarily in connection with the offer and receipt of bribes and kickbacks paid by sports marketing companies to soccer officials in exchange for the media and marketing rights to various soccer tournaments and events and the laundering of those payments.
Breon Peace, United States Attorney for the Eastern District of New York, Kenneth A. Polite, Jr., Assistant Attorney General of the Justice Department’s Criminal Division, Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Ryan L. Korner, Special Agent-in-Charge, Internal Revenue Service-Criminal Investigation, Los Angeles (IRS-CI), made the announcement.
“Today’s distribution of approximately $92 million underscores our commitment to returning money obtained through the corruption and fraud prosecuted in this case to the victims, where it will be used to benefit the sport,” stated United States Attorney Peace. “Over much of the past decade, this investigation and prosecution has concentrated on bringing wrongdoers to justice and recovering ill-gotten gains. Our Office, working in collaboration with our law enforcement partners and colleagues in the Department of Justice, will continue our work to compensate victims of crime.”
“From the beginning of the FIFA investigation and prosecutions, one of the department’s primary goals has been to make the victims whole,” stated Assistant Attorney General Polite. “The department has used every tool at its disposal to make this a reality, while depriving the perpetrators of the proceeds of their crimes. This distribution of approximately $92 million as compensation for losses suffered highlights the importance of asset forfeiture as a critical tool in this endeavor.”
“There was an extraordinary amount of money flowing between corrupt officials and businesses in this massive scheme,” stated FBI Assistant Director-in-Charge Driscoll. “It is gratifying to know assets seized from the criminals involved will be distributed to groups in need of the money, one specifically focused on educating and safeguarding football for women and girls. The silver lining is that some good will come from the rampant greed uncovered in this investigation.”
“As the distributions to victims have demonstrated, IRS-CI and our law enforcement partners will leave no stones unturned when it comes to conducting investigations involving financial crimes,” stated IRS-CI Special Agent-in-Charge Korner. “Not only have dozens of individuals been brought to justice through the course of the investigation, but the additional $92 million will be returned in full to the victims to help compensate them for the injuries caused by this corruption.”
On May 27, 2015, an indictment was unsealed charging 14 FIFA officials and sports marketing executives with racketeering, honest services wire fraud and money laundering offenses, among others. On December 3, 2015, a superseding indictment was unsealed charging an additional 16 FIFA officials with similar crimes. During the course of the prosecutions, 27 individual defendants have pleaded guilty to their roles in the charged crimes. In December 2017, two former FIFA officials, Juan Ángel Napout and Jose Maria Marin, were convicted after trial of racketeering conspiracy and related offenses. Four corporate entities have pleaded guilty and others, including banks, have acknowledged their roles in criminal conduct through deferred prosecution or non-prosecution agreements.
As part of these proceedings, many of the defendants were ordered to forfeit assets obtained through their criminal activity. Under federal law, the Department of Justice has the authority to distribute the proceeds of forfeited assets through the remission process to victims of crimes, including to the soccer organizations that employed and were defrauded by the corrupt soccer executives.
FIFA, CONCACAF, and CONMEBOL have committed to distributing funds received through the remission process, including $32.3 million previously remitted in August 2021, to and through a newly created World Football Remission Fund (the “Fund”) focused on women’s/girl’s football, education, safeguarding, youth programs, community outreach and humanitarian needs. The fund has been established under the FIFA Foundation, an independent foundation that uses soccer, and sport in general, as a tool for social development. The terms of the Fund provide for oversight and independent audit measures to ensure remitted funds are distributed appropriately.
Assistant U.S. Attorneys Samuel P. Nitze, M. Kristin Mace, Brian D. Morris, Kaitlin T. Farrell, and Victor A. Zapana are in charge of the prosecution and the petition, solicitation, and providing recommendations on the victims’ petitions. Assistant U.S. Attorney Lauren H. Elbert and Trial Attorney Christian Nauvel and former Trial Attorney Michael Grady of the Money Laundering and Asset Recovery Section joined in the investigation and prosecution of the banks.
The Justice Department, through the Asset Forfeiture Program, works diligently to restore lost funds to victims of crime. The victim compensation payments in the FIFA case would not have been possible without the extraordinary efforts of the U.S. Department of Justice Criminal Division’s Money Laundering and Asset Recovery Section, which reviewed and approved the victims’ petition for remission; the FBI’s New York Field Office; and the Internal Revenue Service-Criminal Investigation.
U.S. Attorney Breon Peace's Remarks on R. Kelly SentencingRead the Press Release
"Moments ago, R. Kelly was sentenced to 30 years in prison. This is a momentous outcome for all victims of R. Kelly, and especially for the survivors who so bravely testified about the horrific and sadistic abuse they endured. R. Kelly is a predator and as a result of our prosecution, he will serve a significant jail sentence for his crimes.
With the aid of his fame, money, and most importantly his inner circle, R. Kelly preyed upon children and young women for his own sexual gratification, for decades. He used coercive control – exemplified by a pattern of isolation, rules, dependence, threats, intimidation tactics, physical abuse, and, at least once, the presence of a firearm – to force victims, including minors, to engage in sexual activity with him and others and to become unwilling participants in the pornographic films he wrote, produced, and directed.
He continued committing his crimes for almost 30 years and avoided punishment. Until today.
Today, the sentence shows the witnesses reclaimed control over their lives, and over their future. These are the voices of mostly young black women and children that were heard and believed and for whom justice was achieved. This is a victory for them, for justice, and for future survivors of sexual assault. Victims of sexual violence must be heard, perpetrators must be held accountable and our women and children must be protected.
I hope this sentencing serves as its own testimony that it does not matter how powerful, rich or famous your abuser may be, or how small they make you feel – justice only hears the truth.
This case would not be possible without outstanding work dedication and skill of the prosecution team Assistant United States Attorneys Elizabeth Geddes, Nadia Shihata, and Maria Cruz Melendez, senior investigator Keith Kolovich, and former paralegal specialists Kyra Wenthen and Alyssa Fagel. Their dedication to the truth was truly extraordinary. I want to commend and thank the special agents who handled this case, Ryan Chabot, and Sylvette Reynoso of the Department of Homeland Security, Homeland Security Investigations under the supervision of supervisory special agents Elvin Hernandez and Patrick Gill, for their outstanding work on the case. Along with detectives from the New York City Police Department, they painstakingly went through records, documents, and interviews to collect and verify the facts that became the foundation of our strong case. And finally, an extraordinary thank you to the brave survivors, those who came forward, and all who endured. It is thanks to you that we are able to deliver justice today."
Five Gun Traffickers Arrested for Selling over 25 Firearms, Including Assault Rifles, Connected to Four Shootings in BrooklynRead the Press Release
Sixth Defendant Arrested for Trafficking Crack Cocaine In Brooklyn And Queens
A complaint was unsealed today in federal court in Brooklyn charging Jamel Clarke, Dwayne Harris, Rayon Lovett, Owen Welch and Ronald Welch with engaging in a gun trafficking conspiracy dating back to September 2021, involving the sale of at least 28 firearms, including multiple AR-15-style semi-automatic rifles and AK-47-style assault rifles. At least two of the guns had been previously used in four separate shootings in Brooklyn. Dwayne Harris and Pheod Khan were also charged in the complaint with engaging in a crack cocaine trafficking conspiracy. An additional defendant is also charged in the drug trafficking conspiracy and remains at large.
The defendants were arrested between June 26, 2022 and June 28, 2022. Ronald Welch was arraigned on June 27, 2022, Clarke, Harris, Lovett and Owen Welch were arraigned on June 28, 2022, and Khan was arraigned on June 29, 2022, in federal court in Brooklyn before United States Magistrate Judge Roanne L. Mann. All of the defendants with the exception of Harris and Khan were detained pending trial; Khan’s detention hearing will be completed tomorrow on June 30.
Breon Peace, United States Attorney for the Eastern District of New York, John B. DeVito, Special Agent-in-Charge, U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), and Keechant L. Sewell, Commissioner, New York City Police Department (NYPD), announced the complaint.
“As alleged, the defendants brought deadly weapons, including guns involved in at least 4 shootings, and narcotics to the streets of Brooklyn and Queens directly contributing to the cycles of gun violence and drug abuse,” stated United States Attorney Peace. “These arrests demonstrate the commitment by this Office and our law enforcement partners to save lives by stopping the flow of illegal firearms and narcotics into our communities.”
Mr. Peace thanked the NYPD’s Brooklyn South Violent Crime Squad and the United States Marshals Service for their outstanding investigative work on this case.
“These violent gun traffickers have been identified and caught because of the dedication of the law enforcement professionals protecting this City,” said Special Agent in Charge DeVito. “ATF and our partners will continue to do so, while simultaneously disrupting the flow of illegal guns to our streets and preventing violent crime.”
According to the complaint and a memorandum filed in connection with the defendants’ bail hearings, the gun-trafficking operation involved the sale of at least 28 illegal firearms over multiple transactions in Brooklyn and Queens between September 2021 and June 2022. The defendants conducted these firearms sales in vehicles outside of homes in the Prospect Park South neighborhood of Brooklyn, including in locations near Prospect Park, across from a church, and blocks away from a kindergarten through eighth grade public school.
The deals often occurred in the middle of the afternoon and in broad daylight, with the dealers sometimes walking down public streets carrying bags of dangerous firearms past residents. Many of the guns were high-powered shotguns and rifles and included extended magazines and drum clips. Some of the guns had defaced serial numbers so that they would be untraceable by law enforcement. At least two of the guns had been previously used in four separate shootings in Brooklyn.
The charges in the complaint are allegations, and the defendants are presumed innocent unless and until proven guilty.
The government’s case is being handled by the Office’s General Crimes section. Assistant United States Attorneys Benjamin Weintraub and Andrew D. Reich are in charge of the prosecution.
The Defendants:
JAMEL CLARKE
Age: 38
Brooklyn, New YorkDWAYNE HARRIS
Age: 36
Brooklyn, New YorkPHEOD KHAN
Age: 42
Brooklyn, New YorkRAYON LOVETT
Age: 35
Brooklyn, New YorkOWEN WELCH
Age: 42
Brooklyn, New YorkRONALD WELCH
Age: 47
Brooklyn, New YorkE.D.N.Y. Docket No. 22-MJ-679 (RML)
12 Members and Associates of the "Route Boys" Charged with Multiple Burglaries, Drug Trafficking and Firearms OffensesRead the Press Release
On June 28, 2022, a federal grand jury in Central Islip, New York returned an 18-count superseding indictment charging Carlos Acevedo, Ramon Collado, Naresh Deonarrain, Jason Liriano, Charlie Maisonet, Cavier Nedrick, Eric Nunez, Jose Rosado, Alberto Santiago and Jeffrey Vargas with conspiracy to commit burglary involving controlled substances. The superseding indictment, which was unsealed this morning, also charged the defendants, along with Jonathan Santiago, with conspiracy to distribute controlled substances, including ecstasy and fentanyl. Furthermore, the superseding indictment charged Luis Cerda, along with Collado, Liriano, Rosado and Alberto Santiago, with conspiracy to commit bank larceny. The defendants were also charged with several related firearms counts, including possessing a ghost gun.
According to court filings, the defendants are members and associates of a burglary and drug trafficking organization known as the “Route Boys.” Over the past two years, the defendants, along with other associates of the Route Boys, committed dozens of burglaries of pharmacies and convenience stores in Nassau, Suffolk, Brooklyn, Queens, Westchester and Rockland Counties, as well as in New Jersey and Connecticut. They then used social media to sell the controlled substances and frequently displayed images of themselves possessing firearms.
Earlier this morning, when agents arrested the defendants, they recovered several loaded guns and observed controlled substances in various defendants’ residences and cars. Acevedo, Cerda, Collado, Deonarrain, Maisonet, Nunez, Jonathan Santiago and Vargas were arrested this morning and will be arraigned on the superseding indictment later today in Central Islip, New York before United States Magistrate Judge Arlene R. Lindsay. Liriano, Nedrick, Rosado and Alberto Santiago are presently incarcerated on other charges and will be arraigned on a later date.
Breon Peace, United States Attorney for the Eastern District of New York, and Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), Keechant L. Sewell, Commissioner, New York City Police Department (NYPD), and Patrick J. Ryder, Commissioner, Nassau County Police Department (NCPD) announced the arrests and charges.
“For two years the defendants went on a crime spree targeting local businesses throughout the Tri-State, stealing money and pharmaceuticals to fuel their illegal drug business, and frequently using firearms to commit their crimes,” stated United States Attorney Breon Peace. “This office is working tirelessly with our law enforcement partners to protect local businesses and put a stop to those who seek to endanger our communities from drugs or guns.”
Mr. Peace thanked the Suffolk County Police Department, Westchester Safe Streets Task Force, Drug Enforcement Administration, Kings County District Attorney’s Office, Queens County District Attorney’s Office, Nassau County District Attorney’s Office, and Suffolk County District Attorney’s Office for their assistance with the investigation.
“This criminal wrecking crew allegedly broke into businesses and pharmacies, stole prescription medications, and created havoc in their Hollywood style getaways,” said FBI Assistant Director-in-Charge Driscoll. “These drugs are protected because of how addictive and potentially deadly they can be. The members of this gang showed no regard for the damage they caused the businesses or the danger they put people's lives in illegally pushing drugs, all to fuel their own greed.”
“The NYPD, in close cooperation with our state and federal partners, continues to focus its resources on the relatively small percentage of people responsible for much of our region’s crime and disorder,” stated NYPD Commissioner Sewell. “Neither the law-enforcement community nor the New Yorkers we serve will stand for our neighborhoods to be overrun by individuals or groups operating in illegal guns and drugs, and the havoc so often associated with them. I thank the U.S. Attorney’s Office for the Eastern District, the FBI’s New York Field Office, the Nassau County Police Department, and all of our investigators for their hard work in this important case.”
“The indictments of 12 members of the “Route Boys” is a clear example of the commitment by numerous law enforcement agencies as they continue to work cohesively to bring this group of dangerous felons to justice,” stated Nassau Police Commissioner Ryder. “The results of this extensive investigation will ensure the safety of the public and quality of life in Nassau County as we continue to exhibit a zero tolerance approach for all illegal criminal activity. I would like to acknowledge the dedication and hard work of all of the investigators and their agency’s for a job well done.”
As alleged in the indictment and other court filings, the Route Boys began committing burglaries in late 2020, breaking into convenience stores, check-cashing businesses, laundromats and restaurants, stealing primarily cash and tobacco products. In addition, they often stole free-standing ATMs, forcing them open and stealing the cash from inside the machine. The Route Boys then began targeting small “mom-and-pop” pharmacies throughout the Tri-State area.
Their pattern remained consistent throughout their crime wave: three to four participants would travel to multiple locations in quick succession on a given night, often in a stolen car, with stolen plates that were routinely switched to avoid detection, and then break into the business, either by smashing glass with crowbars, rocks or grinders. Once inside, the defendants or their associates quickly stole controlled substances – including oxycodone, alprazolam and promethazine-codeine cough syrup – and moved on to the next crime, often burglarizing several locations on a single night. After the Route Boys committed a crime, they routinely fled in stolen luxury vehicles at extremely high rates of speed, often crashing into other vehicles and endangering the lives of law enforcement officers and innocent citizens. Route Boys’ members, including Carlos Acevedo, Ramon Collado, Naresh Deonarrain, Jason Liriano, Charlie Maisonet, Cavier Nedrick, Eric Nunez, Jose Rosado, Alberto Santiago and Jeffrey Vargas used social media to sell the controlled substances and frequently displayed images of themselves possessing firearms, including high capacity magazines, scopes and multiple guns at once.
If convicted, Carlos Acevedo, Ramon Collado, Naresh Deonarrain, Jason Liriano, Charlie Maisonet, Cavier Nedrick, Eric Nunez, Jose Rosado, Alberto Santiago, and Jeffrey Vargas all face up to life imprisonment. Jonathan Santiago faces a sentence of up to 40 years’ imprisonment, and Luis Cerda faces a sentence of up to 15 years’ imprisonment. The charges in the superseding indictment are allegations, and the defendants are presumed innocent unless and until proven guilty.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorneys Samantha Alessi and Andrew Wenzel are in charge of the prosecution, with the assistance of paralegal specialist Dejah Turla.
The Defendants:
CARLOS ACEVEDO (also known as “AM” and “Cartier_a.m”)
Age: 25
Brooklyn, New YorkLUIS CERDA
Age: 32
Queens, New YorkRAMON COLLADO (also known as “Greedy”, “greedy.billzz” and “greedyyt2gg”)
Age: 25
Brooklyn, New YorkNARESH DEONARRAIN (also known as “Kans” and “nocheck_kans”)
Age: 26
Brooklyn, New YorkJASON LIRIANO (also known as “S.L. and jay_bigfella”)
Age: 24
Brooklyn, New YorkCHARLIE MAISONET (also known as “Charlie_._rb”)
Age: 20
Brooklyn, New YorkCAVIER NEDRICK (also known as “Chief”, “big.chiefs” and “_bigchiefsrb”)
Age: 25
Hauppauge, New YorkERIC NUNEZ (also known as “Tok” and “therealtok”)
Age: 25
Brooklyn, New YorkJOSE ROSADO (also known as “Cream” and “elite_cream”)
Age: 29
Queens, New YorkALBERTO SANTIAGO (also known as “Kom” and “dot._kom._”)
Age: 26
Queens, New YorkJONATHAN SANTIAGO (also known as “Chop”)
Age: 23
Franklin Square, New YorkJEFFREY VARGAS (also known as “Chito” and “chito_1838”)
Age: 22
Brooklyn, New YorkE.D.N.Y. Docket No. 21-451 (S-2) (GRB)
"R. Kelly" Sentenced to 30 Years in PrisonRead the Press Release
Earlier today, Robert Sylvester Kelly, the R&B singer also known as “R. Kelly,” was sentenced by United States District Judge Ann M. Donnelly to 30 years in prison. On September 27, 2021, following six weeks of trial, a federal jury in Brooklyn convicted Kelly of all nine counts of a superseding indictment charging him with racketeering predicated on criminal conduct including sexual exploitation of children, forced labor and Mann Act violations involving the coercion and transportation of women and girls in interstate commerce to engage in illegal sexual activity.
Breon Peace, United States Attorney for the Eastern District of New York, and Steve K. Francis, Acting Executive Associate Director, Homeland Security Investigations (HSI), announced the sentence.
“R. Kelly used his fame, fortune and enablers to prey on the young, the vulnerable and the voiceless for his own sexual gratification, while many turned a blind eye,” stated U.S. Attorney Peace. “Through his actions, Kelly exhibited a callous disregard for the devastation his crimes had on his victims and has shown no remorse for his conduct. With today’s sentence he has finally and appropriately been held accountable for his decades of abuse, exploitation and degradation of teenagers and other vulnerable young people. We hope that today’s sentence brings some measure of comfort and closure to the victims, including those who bravely testified at trial, and serves as long-overdue recognition that their voices deserve to be heard and their lives matter.”
Mr. Peace also thanked the Cook County State’s Attorney’s Office for their assistance with the case.
“Robert Kelly is a prolific serial predator who utilized his wealth and fame to prey on the young and vulnerable by dangling promises of fame, fortune and stardom for his own sexual gratification. For nearly thirty years, Kelly and his accomplices silenced his victims through bribery, intimidation, blackmail and physical violence, confident they were immune to justice” stated HSI Acting Executive Associate Director Steve K. Francis. “Today’s sentence is a victory which belongs to the survivors of Kelly’s abuse. These brave women and men came forward, despite threats to their own personal safety, and were forced to relive the pain of the most traumatic days of their lives to tell the truth and make their voices heard.”
As proven at trial, for nearly three decades, Kelly was the leader of a criminal enterprise (the Enterprise) consisting of himself and an entourage of individuals who served as managers, bodyguards, accountants, drivers, personal assistants and runners for the defendant. As the leader of the Enterprise, Kelly used his fame to recruit women and girls to engage in illegal sexual activity with him. Kelly identified these girls and women at concerts, and then directed members of the Enterprise to escort them backstage following his musical performances. Kelly exchanged contact information with girls and women so that he and other members of the Enterprise could arrange travel and lodging for them to visit Kelly and engage in the charged illegal sexual conduct.
The evidence at trial included the testimony of 45 government witnesses, including more than 10 victims, five of whom are named in the superseding indictment, testimony from employees of the defendant, text messages, video and audio recordings, photographs, phone and travel records, DNA evidence and expert witnesses.
Kelly issued rules that many of his sexual partners were required to follow, including that the women and girls were to call him “Daddy”; they were not permitted to leave their rooms to eat or visit the bathroom without receiving his permission; they were required to wear baggy clothing when not accompanying Kelly to an event; and they were directed to keep their heads down and not look at or speak to other men. Kelly also isolated the women and girls from their friends and family and made them dependent on him for their financial well-being. He required the victims to engage in sex with him and others, and recorded many of the sexual encounters.
Racketeering Act One – Bribery
Kelly bribed a state employee to create an identification card for Jane Doe #1, then 15 years old, so that Kelly could marry Jane Doe #1 because he believed she was pregnant and therefore the marriage could keep him out of jail.
Racketeering Acts Two, Seven and Ten – Sexual Exploitation of a Child – Jane Doe #2, Jane Doe #4 and Jane Doe #5
Kelly coerced Jane Doe #2, Jane Doe #4 and Jane Doe #5 to engage in sexually explicit conduct for the purpose of producing video recordings. Over the course of decades, he made these recordings, and other recordings of sexually explicit conduct, using VHS video cameras, Canon camcorders, iPhones and iPads. Such videos constituted child pornography.
Racketeering Acts Six, Eleven and Thirteen – Forced Labor – Jane Doe #4, Jane Doe #5 and Jane Doe #6
Kelly used the threat of physical harm and physical restraint to ensure that his victims, including Jane Doe #4, Jane Doe #5 and Jane Doe #6, performed sexually at his command. As to Jane Doe #4, he slapped her, choked her and spit on her, before demanding she give him oral sex. As to Jane Doe #5, over a period of years, he spanked her, viciously assaulted her, confined her to a room or a bus for prolonged periods of time, including days, and otherwise manipulated her, to ensure that she would perform for him sexually, including with other women and a man. As to Jane Doe #6, he forced her to give him oral sex while there was a gun within Kelly’s reach.
Racketeering Acts Five and Nine – Mann Act Violations – Jane Doe #4 and Jane Doe #5
Between May 2009 and January 2010, Kelly regularly spoke with Jane Doe #4 over the telephone to arrange for Jane Doe #4 to come to his residence in Olympia Fields for the purpose of illegal sexual activity, which was illegal because Jane Doe #4, who was then 16 years old, was too young to consent to sex in Illinois. Similarly, between September 2015 and October 2015, Kelly transported Jane Doe #5, who was then 17 years old, from New York City to Oakland, California for the purpose of illegal sexual activity, as she was too young to consent to sex in California.
Racketeering Acts Eight, Thirteen and Fourteen – Mann Act Violations – Jane Doe #5 and Jane Doe #6
In April 2015, Kelly arranged for Jane Doe #5 to fly from her home in Orlando, Florida, to Los Angeles, California, for the purpose of illegal sexual activity, which was illegal because Kelly knew he had an incurable sexually transmitted disease (STD) and did not inform Jane Doe #5 about the STD prior to engaging in sexual intercourse with her. In May of 2017 and again in February of 2018, Kelly arranged for Jane Doe #6 to fly from her home in San Antonio, Texas, to La Guardia Airport in Queens, New York, for the purpose of illegal sexual activity, which again was illegal because Kelly failed to disclose that he had an incurable STD and obtain Jane Doe #6’s consent to engage in sexual intercourse under those circumstances.
The government’s case is being handled by the Office’s Civil Rights Section. Assistant United States Attorneys Elizabeth Geddes, Nadia Shihata and Maria Cruz Melendez are in charge of the prosecution.
The Defendant:
ROBERT SYLVESTER KELLY (also known as “R. Kelly”)
Age: 55
Chicago, IllinoisE.D.N.Y. Docket No. 19-CR-286 (AMD)
U.S. Citizen Pleads Guilty to Conspiring to Provide Electronic Equipment and Technology to the Government of IranRead the Press Release
A dual citizen of the United States and Iran pleaded guilty today to conspiring to illegally export U.S. goods, technology and services to end users in Iran, including the Government of Iran, in violation of the International Emergency Economic Powers Act (IEEPA).
According to court documents, Kambiz Attar Kashani, 44, and his co-conspirators, using two United Arab Emirates companies, evaded U.S. export laws between February 2019 and June 2021 by procuring electronic goods, technology and services from U.S. technology companies for end users in Iran without obtaining required licenses or other authorization from the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC). Kashani acted at the direction of an arm of the Central Bank of Iran (CBI). CBI has been designated by OFAC for having materially assisted, sponsored or provided financial, material or technological support to known terrorist organizations.
Kashani faces a maximum penalty of 20 years in prison, and he has agreed to pay a $50,000 fine, in addition to any forfeiture owed. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Breon Peace for the Eastern District of New York, Assistant Attorney General Matthew G. Olsen for the Justice Department’s National Security Division and Special Agent in Charge Joseph R. Bonavolanta of the FBI’s Boston Field Office made the announcement.
Assistant U.S. Attorneys Alexander A. Solomon and Meredith A. Arfa of the Eastern District of New York are in charge of the prosecution, with assistance provided by Trial Attorney S. Derek Shugert of the National Security Division’s Counterintelligence and Export Control Section.
U.S. Citizen Pleads Guilty to Conspiring to Provide Electronic Equipment and Technology to the Government of IranRead the Press Release
Earlier today, in federal court in Brooklyn, Kambiz Attar Kashani, a dual citizen of the United States and Iran, pleaded guilty to conspiring to illegally export U.S. goods, technology, and services to end users in Iran, including the Government of Iran, in violation of the International Emergency Economic Powers Act (IEEPA). Today’s plea proceeding was held before United States Magistrate Judge Marcia M. Henry. When sentenced, Kashani faces up to 20 years in prison. The defendant has agreed to pay a $50,000 fine.
Breon Peace, United States Attorney for the Eastern District of New York, Matthew G. Olsen, Assistant Attorney General for the Justice Department’s National Security Division, and Joseph R. Bonavolanta, Special Agent-in-Charge, Federal Bureau of Investigation, Boston Division, announced the guilty plea.
As set forth in court filings, between February 2019 and June 2021, Kashani and his co-conspirators, using two United Arab Emirates companies, evaded U.S. export laws by procuring electronic goods, technology, and services from U.S. technology companies for end users in Iran, including the Government of Iran, without obtaining required licenses or other authorization from the U.S. Department of the Treasury’s Office of Foreign Assets Control. Kashani acted at the direction of an arm of the Central Bank of Iran, which has been designated by the United States government as acting for or on behalf of terrorist organizations.
The government’s case is being handled by the Office’s National Security and Cybercrime Section. Assistant United States Attorneys Alexander A. Solomon and Meredith A. Arfa are in charge of the prosecution, with assistance provided by Trial Attorney S. Derek Shugert of the Justice Department’s Counterintelligence and Export Control Section.
Defendant:
Kambiz Attar Kashani
Age: 44
United Arab EmiratesE.D.N.Y. Docket No.: 22-CR-33 (EK)
Former Airline Employee and Aircraft Part Sellers Charged in Kickback and Money Laundering SchemeRead the Press Release
An indictment was unsealed earlier today in federal court in Brooklyn charging Keily Nunez, Julien Levy, Ivan Santos and Ramnik Soni with conspiracy to commit honest services wire fraud and money laundering conspiracy. The charges arise from a scheme in which Nunez, a former employee of a U.S. airline headquartered in Long Island City, New York (Company 1), accepted more than $1 million in kickbacks in exchange for steering Company 1 aircraft part purchase orders to Summit Aviation Supply LLC (Summit LLC), a New Jersey-based company controlled by Levy and Santos; and to Alaris Aerospace Systems LLC (Alaris), a Florida-based company controlled by Soni. Summit LLC and Alaris secured more than $1.5 million and more than $8.5 million, respectively, in purchase orders from Company 1 during the conspiracy. Levy was arrested yesterday; Santos and Nunez were arrested today and all three were arraigned this afternoon before United States Magistrate Judge Roanne L. Mann. Levy was released on a $400,000 bond, Santos on a $150,000 bond, and Nunez on a $150,000 bond. Soni was arrested today and will be arraigned tomorrow.
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 arrests and charges.
“As alleged, the defendants were at the helm of a corrupt scheme to defraud an airline by diverting contracts to vendors in exchange for more than $1 million in kickbacks,” stated United States Attorney Peace. “This Office is committed both to protecting the integrity of the bidding process and ensuring that businesses compete on a level, honest playing field.”
Mr. Peace thanked Internal Revenue Service Criminal Investigation for its assistance with the investigation.
“The defendants, as alleged, orchestrated an elaborate scheme to defraud the airline industry – lining their own pockets with kickbacks and bribes along the way. The defendants are alleged to have created false invoices for parts, billed for non-existent material and overbilled on legitimate purchases all while circumventing the airline’s policies and procedures,” said HSI New York Acting Special Agent in Charge Patel. “HSI will continue to work alongside our partners and private sector companies to weed out internal corruption, ultimately protecting the general public from the resulting costs that frauds of this nature eventually pass on to the paying customer.”
As alleged in the indictment, between approximately July 2017 and June 2021, Levy, Nunez and Santos conspired to defraud Company 1 of the honest services of its employees, including Nunez and another Company 1 employee (“Co-Conspirator 1”). In their roles with Company 1, Nunez and Co-Conspirator 1 were responsible for contacting after-market aircraft parts sellers on behalf of Company 1 and filling Company 1’s part requisitions using a solicitation process that typically involved three price quotes and a comparison to historical prices Company 1 had paid for a given part. In their roles, Nunez and Co-Conspirator 1 could request that Company 1 add new aircraft part sellers as business partners to Company 1’s internal ordering system. Upon making such a request, Nunez and Co-Conspirator 1 were required by Company 1’s policies to disclose whether they had a business or financial relationship with the new business partner.
In order to carry out the scheme, Nunez allegedly used his position within Company 1 to establish Summit LLC as a Company 1 business partner and falsely represented to Company 1 that Summit LLC was another entity, Summit Corp., that Company 1 had previously partnered with. In reality, Santos established Summit LLC and opened bank accounts in its name, and Levy created an email account in the name of an individual who had been associated with the defunct Summit Corp., that was used as an alias to communicate with Company 1 on behalf of Summit LLC. Nunez approved approximately 37 purchase orders between Summit LLC and Company 1 valued at over $1.5 million. In exchange, Nunez received multiple kickback payments representing a percentage of the purchase orders directed to Summit LLC. In addition, following the termination of Nunez’s employment with Company 1, Nunez contacted Co-Conspirator 1 about steering Company 1’s purchase orders to Summit LLC and Alaris in exchange for a portion of the invoiced amounts. Co-Conspirator 1 agreed and subsequently directed Company 1 purchase orders, at inflated prices, to Summit LLC and Alaris in exchange for a percentage of some of the invoices Co-Conspirator 1 approved.
Nunez carried out a similar scheme with Soni and Alaris. Between approximately March 2017 and July 2019, Nunez allegedly approved approximately 109 invoices between Alaris and Company 1 valued at over $8.5 million. In exchange, Nunez received wires totaling hundreds of thousands of dollars sent from Alaris to bank accounts held in the name of FI USA Consulting LLC (FI USA), an entity controlled by Nunez. For example, between approximately October 2017 and January 2021, the FI USA accounts received approximately 17 wires from Alaris totaling approximately $536,940.
In order to disguise the source and nature of the funds Summit LLC received from the scheme, Santos and Levy made multiple transfers of the proceeds from the Company 1 payments between bank accounts in their names.
The charges in the indictment are allegations, and the defendants are presumed innocent unless and until proven guilty. If convicted, the defendants face up to 20 years in prison.
The government’s 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.
The Defendants:
JULIEN LEVY
Age: 37
Englewood, New JerseyKEILY NUNEZ
Age: 42
Jamaica, New YorkIVAN SANTOS
Age: 41
New City, New YorkROMNIK SONI
Age: 48
Parkland, FloridaE.D.N.Y. Docket No. 22-CR-281 (BMC)
Defendant Convicted of Operating Large-Scale Opioid "Pill Mill" in QueensRead the Press Release
A federal jury in Brooklyn returned a guilty verdict today against Ezhil Sezhian Kamaldoss on all counts of a superseding indictment charging him with conspiring to distribute millions of opioid pills and other illegal controlled substances imported from India and money laundering conspiracy. The verdict followed a four-day trial before United States District Judge Allyne R. Ross. When sentenced, Kamaldoss faces up to 50 years in prison.
Breon Peace, United States Attorney for the Eastern District of New York, announced the verdict.
“The defendant is now a convicted drug dealer. He lined his pockets off the black-market sales of millions of illegal opioids and misbranded prescription pills without regard for the harm caused by the abuse of these highly addictive and dangerous drugs,” stated United States Attorney Peace. “With today’s verdict, the defendant is held accountable for having a hand in every aspect of his pill mill, from the importing of unapproved medications from India, to personally filling orders for these drugs for customers throughout the country.”
Mr. Peace thanked the Food and Drug Administration, Office of Criminal Investigations, Metro Washington Field Office; United States Postal Inspection Service, New York Division; Homeland Security Investigations (HSI), New York Division; U.S. Customs and Border Protection, New York Field Office, U.S. Drug Enforcement Administration, New England Division, the Federal Bureau of Investigation, Cincinnati Field Office; and HSI, Baltimore Field Office; for their outstanding investigative work on the case.
The evidence at trial proved that between May 2018 and August 2019, Kamaldoss participated with others in a transnational drug-trafficking conspiracy, which involved the importation of misbranded prescription drugs, including Tramadol, a synthetic opioid, into the United States from India, re-packaging the drugs at a pill mill operating out of a warehouse in Jamaica, Queens, and shipping the drugs via United States mail to customers throughout the United States. During the course of the charged conspiracy, Kamaldoss and the men who worked for him distributed millions of Tramadol pills sometimes purchasing hundreds of thousands of pills at a time. Additionally, Kamaldoss conspired to launder the proceeds of the drug-trafficking operation by using the illicit profits to reinvest in the business, including by paying shipping costs incurred by his co-conspirators—including nearly $200,000 in Federal Express costs paid off in exchange for additional pills.
The government’s evidence included testimony from a cooperating witness, who admitted to bribing workers at John F. Kennedy International Airport to evade detection by law enforcement authorities; members of law enforcement, one of whom testified that he witnessed the defendant shipping packages and seized some of the drugs mailed by the defendant; testimony from an expert in forensic chemistry that the drugs mailed by the defendant contained Tramadol and Alprazolam; documentary exhibits, including hundreds of emails, text messages, and spreadsheets recovered from email accounts and electronic devices of the defendant and his co-conspirators reflecting their daily receipt of dozens of drug orders, and their responses including tracking numbers of the shipments fulfilling the orders; and an audio recording made by a confidential informant of co-defendant Velaudapillai Navaratnarajah discussing the number and type of pills to package into envelopes. Navaratnarajah pleaded guilty in June 2022 to the drug conspiracy charges and is awaiting sentencing.
The government’s case is being handled by the Office’s International Narcotics and Money Laundering Section. Assistant United States Attorneys Robert M. Pollack and Margaret Schierberl are in charge of the prosecution, with the assistance of paralegal Sophia Cronin.
The Defendant:
EZHIL SEZHIAN KAMALDOSS (also known as “Kamaldoss Sezhian,” “Kamal Doss,” and Ezhil Cezhian”)
Age: 43
Richmond Hill, New YorkE.D.N.Y. Docket No.: 19-CR-543 (ARR)
Two Individuals Indicted for Fatal Shooting in Connection with Marijuana Deal in BrooklynRead the Press Release
On June 15, 2022, a federal grand jury sitting in Brooklyn, New York returned a 14-count superseding indictment charging Marcus Ricketts, also known as “Blaise,” and Mark Goulbourne, also known as “Short Man,” with causing death through the use of firearms in connection with the December 3, 2021 murder of an individual in Brighton Beach, New York. The superseding indictment, which was unsealed last night, also charges Ricketts, Mark Goulbourne and four additional defendants—Jonathan Goulbourne, also known as “Bobcat,” Romeo Desmond Jonas, also known as “Tee,” Chevonne Williams, also known as “Chevy,” and Amari Webber, also known as “Smooth”—with Hobbs Act robbery, drug trafficking and firearms offenses, and one defendant, Juvanie Crossgill, also known as “Geo,” with serving as an accessory to the murder.
According to court filings, the defendants are members and associates of an armed robbery crew, operating since at least July 2020, targeting marijuana trafficking businesses in Brooklyn, Staten Island and the Bronx.
Ricketts, Jonathan Goulbourne and Jonas are in custody on the underlying indictment and will be arraigned at a later date. Crossgill was arrested on June 15, 2022, arraigned the following day and released on bail. Yesterday, Williams and Webber were arrested in Georgia and will be removed to the Eastern District of New York to make their initial appearances. Mark Goulbourne 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 Keechant L. Sewell, Commissioner, New York City Police Department (NYPD), announced the arrests and charges.
“As alleged, the defendants’ robbery and drug trafficking activity exploded into violence with three persons shot, one of them fatally, demonstrating the lethal combination of guns and narcotics plaguing our communities,” stated United States Attorney Peace. “This Office is working tirelessly with our law enforcement partners to hold these drivers of violent crime accountable and take away their means to wreak havoc.”
Mr. Peace thanked the Kings County District Attorney's Office for their assistance.
“The violence plaguing the streets of our city must be addressed by stopping the violent criminals who are killing each other over illegal drugs. Innocent people are being harmed by these rivalries, and fear now dictates how we go about our lives. It has to stop. When the FBI New York and our law enforcement partners arrest and prosecute these criminals, we get closer to a safer community,” stated FBI Assistant Director-in-Charge Driscoll.
“Today, New York City is safer because of the exceptional effort and steadfast dedication of everyone involved in this investigation and indictment,” said NYPD Commissioner Sewell. “The NYPD and our law enforcement partners remain focused on the small number of people who are responsible for the crime and disorder in our city, and we are working tirelessly to identify them and get them off our streets. As demonstrated by this case, the deadly combination of drug trafficking, illegal guns, and brutal violence is a grave threat to our communities – and will never be tolerated. I want to thank the US Attorney for the Eastern District of New York, the New York Field Office of the FBI, and everyone else who contributed to this important investigation.”
On December 2, 2021 and into the early morning of December 3, 2021, the defendants convened at an Airbnb in Brighton Beach, which had been rented for one night by the victim and his nephew, with several of the defendants posing as buyers in a wholesale marijuana transaction. On December 3, shortly after midnight, the victim’s nephew and two male associates carried in four very large duffle bags of marijuana, approximately the size of hockey equipment bags. Two hours later, a shootout ensued, leaving the victim fatally wounded and his nephew with a gunshot wound to the leg. During the exchange of gunfire, Jonas was also shot in the abdomen.
Mark Goulbourne and Ricketts fled the scene with firearms in hand, and Ricketts with one of the duffle bags, which he transported on the handlebars of a stolen Citi Bike. Mark Goulbourne retreated to a neighboring intersection, where he called his brother Jonathan Goulbourne, moments before entering an approaching car. The car quickly reversed back up the street to the Airbnb. Mark Goulbourne ran to the door with a firearm still in hand and peered inside, before reentering the car, which sped away.
Inside the Airbnb, the NYPD found the victim’s body and recovered two firearms, 15 shell casings, a money counting machine, a vacuum sealing machine, a bag containing real and counterfeit U.S. currency, and a duffle bag, inside of which were smaller, vacuum-sealed bags of marijuana. In the vicinity, the NYPD recovered two additional firearms, as well as two duffle bags, inside of which were smaller, vacuum-sealed bags of marijuana. The approximate weight of the marijuana recovered is 140 pounds. The fourth duffle bag was not recovered.
If convicted, Ricketts, Mark Goulbourne, Jonathan Goulbourne and Jonas all face up to life imprisonment. Ricketts, Mark Goulbourne and Jonathan Goulbourne face mandatory minimum sentences of 17 years’ imprisonment, and Jonas faces a mandatory minimum sentence of seven years’ imprisonment. Williams and Webber each face sentences of up to 20 years’ imprisonment, and Crossgill faces a sentence of up to 15 years’ imprisonment. The charges in the superseding indictment are allegations, and the defendants are presumed innocent unless and until proven guilty.
The charges are the result of an ongoing Organized Crime Drug Enforcement Task Forces (OCDETF) investigation led by the United States Attorney’s Office for the Eastern District of New York and the FBI. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking, weapons trafficking, and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply. OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
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 International Narcotics and Money Laundering Section. Assistant United States Attorneys Tara McGrath and Chand Edwards-Balfour are in charge of the prosecution, with assistance from Paralegal Specialist Gwyneth Hochhausler.
The Defendants:
MARCUS RICKETTS (also known as “Blaise”)
Age: 45
JamaicaMARK GOULBOURNE (also known as “Short Man”)
Age: 48
JamaicaJUVANIE CROSSGILL
Age: 27
JamaicaJONATHAN GOULBOURNE
Age: 43
Brooklyn, New YorkROMEO JONAS
Age: 34
Atlanta, GeorgiaAMARI WEBBER
Age: 31
Douglasville, GeorgiaCHEVONNE WILLIAMS
Age: 43
Dallas, GeorgiaE.D.N.Y. Docket No. 22-CR-106 (LDH)
Bloods Gang Member Sentenced to 25 Years for Two Murders and Other Violent CrimesRead the Press Release
Earlier today, in federal court in Central Islip, Dylan Cruz, a member of the Red Lane Gorillas “set” of the Bloods street gang, was sentenced by United States District Judge Joanna Seybert to 35 years in prison following his conviction on racketeering charges for his role in the July 2012 murder of Anthony Richard in Baldwin Harbor, the October 2014 murder of Ehrik Williams in Hempstead, the November 2010 attempted murder of a rival gang member in Roosevelt, and a several years’ long conspiracy to murder members of a rival “set” of the Bloods gang in Brooklyn. Cruz pleaded guilty to racketeering in December of 2021 along with co-defendant Richard Michel who is awaiting sentencing.
Breon Peace, United States Attorney for the Eastern District of New York and Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), Patrick J. Ryder, Commissioner, Nassau County Police Department (NCPD), and Keechant L. Sewell, Commissioner, New York City Police Department (NYPD), announced the guilty plea.
“Dylan Cruz’s senseless, callous violence took the lives of two innocent young men and devastated their families, all because of suspected offenses against his fellow gang members and associates,” stated United States Attorney Peace. “The relentless efforts of this Office and our law enforcement partners resulted in Cruz being held accountable for these murders that went unsolved for years. Today’s sentence should send a message to all that violent actors will be held accountable for their criminal acts, no matter how long it takes.”
“The details of this years-long investigation make clear: The NYPD and our law-enforcement partners will never tolerate violent gangs and the havoc they wreak in our communities,” stated NYPD Commissioner Sewell. “Today’s sentencing reflects this defendant’s callous disregard for life, and reaffirms our commitment to rid our streets of violent criminals by holding them fully accountable for their actions. I want to thank the U.S. Attorney’s Office for the Eastern District of New York, the New York Field Office of the FBI, the Nassau County Police Department, and everyone else who worked to make New York City safer for all the people we serve.”
According to court filings and statements made by the defendant at his guilty plea, between 2010 and 2021, Cruz, 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. Cruz conspired to kill members of the 5-9 Brims and on February 20, 2016, shot and seriously wounded a rival gang member and an innocent female bystander in Queens. On November 17, 2010, Cruz also shot a rival Crips gang member in Roosevelt that left the man paralyzed.
Cruz also engaged in extreme violence against anyone suspected of disloyalty or disrespecting his gang. On July 15, 2012, Cruz murdered Anthony Richard, whom he wrongly suspected of assisting the Crips in the 2010 murder of a member of their gang. Cruz followed Richard to Baldwin Harbor, waited until he parked his car, and then fired 15 shots into Richard’s vehicle, killing him and seriously wounding a passenger.
Just over two years later on October 14, 2014, Cruz murdered Ehrik Williams in Hempstead in the mistaken belief that Williams had robbed one of his associates. Cruz walked up behind Williams in broad daylight and fired multiple shots at him, killing him.
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:
DYLAN CRUZ (also known as “L Banga” and “Red Lane Banga”)
Age: 30
Brooklyn, New YorkE.D.N.Y. Docket Nos. 18-CR-664 (S-3) (JS)
U.S. Attorney Breon Peace Highlights Support and Resources for Elder Abuse Awareness DayRead the Press Release
In observation of this year’s World Elder Abuse Awareness Day, celebrated annually on June 15th, Breon Peace, United States Attorney for the Eastern District of New York highlighted available resources to increase awareness of, and prevent, various scams against seniors including brochures, flyers, and targeted presentations.
“By disseminating materials and having Assistant U.S. Attorneys provide presentations to the Eastern District community, we hope to ensure our valued senior citizens have the tools they need to protect themselves against scams,” stated United States Attorney Breon Peace. “The Office is proud to be part of the Elder Fraud Strike Force and will use every tool at our disposal to ensure that our senior communities are protected, and those that wish to harm them are brought to justice. We encourage all to reach out for more information.”
U.S. Attorney Peace thanked the Federal Trade Commission for its help in creating some of the materials and investigating alleged acts of elder fraud.
Some common scams targeting the elderly include:
- Family imposter scams, where someone calls pretending to be the victim’s relative (often a grandchild) and claiming to need money;
- Government imposter scams, such as callers impersonating the Internal Revenue Service or the Social Security Administration and demanding payment for fictitious tax liabilities or compromised personal information connected to alleged criminal activity;
- Tech support scams, where scammers request remote access to victim computers and then demand money to fix various bogus computer problems; and
- Romance scams conducted through online dating websites. Often the scammers request payment via gift card, making it easier for them to remain anonymous.
Increasing awareness of common types of scams among potential victims helps to increase their vigilance and makes them less likely to fall prey to these schemes.
The U.S. Attorney’s Office for the Eastern District of New York has made available various materials to help increase awareness about, and prevent, frauds targeted at seniors. These include:
- Presentations by Assistant U.S. Attorneys about ways to protect yourself and your community against scams. To request a presentation please email [email protected]
- Brochure about the Department of Justice’s Elder Fraud Strike Force, with details about how to submit a complaint if you were a victim of a scam, where to find additional information, and an overview of common scams and red flags – and how to protect yourself against them.
- Flyers about gift-card scams in English and Spanish created with the Federal Trade Commission.
Combatting elder abuse and financial fraud targeted at seniors is a key priority of the U.S Attorney’s Office. Elder abuse is a serious crime against some of our nation’s most vulnerable citizens, affecting at least 10% of older Americans every year. Together with our federal, state, local, and tribal partners, the U.S. Attorney’s Office is committed to combatting all forms of elder abuse and financial exploitation through enforcement actions, training and resources, victim services, and public awareness.
The United States Department of Justice seeks to prevent and prosecute elder abuse and fraud through the Elder Justice Initiative, which coordinates enforcement efforts Department-wide. In June 2019, the Attorney General announced the establishment of the Transnational Elder Fraud Strike Force. The Eastern District of New York was one of six U.S. Attorneys’ Offices to be selected to be a part of this joint law enforcement effort that brings together the resources and expertise of the Department of Justice’s Consumer Protection Branch, the FBI, the U.S. Postal Inspection Service, and other organizations. The Strike Force focuses on investigating and prosecuting individuals and entities associated with foreign-based fraud schemes that disproportionately affect American seniors. These include telemarketing, mass-mailing, and tech-support fraud schemes.
In March 2022, the Office formed the Consumer Protection Team within the Office’s Civil Division to protect the health, safety, economic security, and dignity of individuals in the Eastern District of New York and nationwide, including our most vulnerable residents – older adults and children. Click here to see more recent news regarding the Office’s Elder Justice initiative.
To request a presentation or other materials, please email [email protected]
For more information on the Department of Justice's Elder Justice Initiative please visit https://www.justice.gov/elderjustice.
If you or someone you know is a victim of elder fraud, please call the Department of Justice’s National Elder Fraud Hotline at 833–FRAUD–11 (833–372–8311).
All FTC information is in the public domain, and free to share. Visit FTC’s Pass It On to download or order free materials, including articles, presentations that you can deliver, bookmarks, and activity sheets in English and Spanish.
The Department of Justice provides a variety of resources relating to elder fraud victimization through its Office of Victims of Crime, which can be reached at www.ovc.gov.
Gambino Crime Family Associate Convicted by Federal Jury in Murder and Robbery of Brooklyn ManRead the Press Release
Anthony Pandrella, an associate of the Gambino organized crime family, was convicted today by a federal jury in Brooklyn of all three counts in an indictment charging him with the Hobbs Act robbery and murder of 77-year-old Vincent Zito and unlawful use of a firearm. The verdict followed a one and a half-week trial before United States Chief District Judge Margo K. Brodie. When sentenced, Pandrella faces up to life in prison and a mandatory minimum sentence of 10 years.
Breon Peace, United States Attorney for the Eastern District of New York, Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Keechant Sewell, Commissioner, New York City Police Department (NYPD), announced the verdict.
“Today’s verdict has found that the defendant is a cold-blooded killer who shot his elderly friend in his home, execution-style with a bullet in the back of the head, to avoid returning a large sum of money he was holding for the victim,” stated United States Attorney Peace. “In addition to the brutal betrayal, the defendant also robbed luxury watches from the victim’s loan business. I commend the FBI special agents and the NYPD detectives who solved the case and brought Pandrella to justice.”
Mr. Peace also expressed his thanks to the Brooklyn District Attorney’s Office for their assistance on the case.
“Today’s conviction underscores that no one – including associates of organized crime – is above the law,” stated Commissioner Sewell. “Because of the outstanding work of the U.S. Attorney for the Eastern District and our law enforcement partners at the FBI, this defendant’s callous disregard for human life will not go unanswered. I thank and commend everyone who worked on this case and helped us hold this violent criminal accountable for his actions.”
The evidence at trial proved that Zito was running an illegal loansharking business and had been told by Pandrella that he was “hot,” meaning that he was under investigation by law enforcement. Zito had given Pandrella $750,000 from the business to hold for safekeeping, but when he tried to collect the money back from Pandrella, the defendant failed to return it. On the morning of October 26, 2018, Pandrella went to the Sheepshead Bay home of Zito and while there, shot his friend of more than 30 years in the back of the head at close range. Pandrella also stole expensive foreign-made wristwatches that the victim was holding as collateral for a customer’s loan. Pandrella was captured on security camera footage entering and leaving Zito’s residence at the time of the murder and robbery. After leaving the victim’s residence, Pandrella went home and additional security video from his neighborhood showed that the defendant changed his shoes and clothing, and removed the driver’s side floor mat of this vehicle so it could be cleaned. Zito’s body was discovered by his 11-year-old grandson upon returning home from school. The murder weapon was recovered at the scene and Pandrella’s DNA was found on the trigger and grip of the firearm.
The government’s case is being handled by the Office’s Organized Crime & Gangs Section. Assistant United States Attorneys M. Kristin Mace and Matthew R. Galeotti are in charge of the prosecution.
The Defendant:
ANTHONY PANDRELLA
Age: 62
Brooklyn New YorkE.D.N.Y. Docket No. 19-CR-122 (MKB)
Brooklyn High School Teacher Convicted of Production of Child PornographyRead the Press Release
Earlier today, following a week-long trial, a federal jury in Brooklyn, New York, returned a guilty verdict against Jonathan Deutsch on four counts of sexual exploitation of a minor and 6 counts of attempted sexual exploitation of a minor. Until his arrest, Deutsch was a teacher at Leon M. Goldstein High School for the Sciences. When sentenced by United States District Judge Frederic Block, the defendant faces a minimum sentence of 15 years’ imprisonment.
Breon Peace, United States Attorney for the Eastern District of New York, Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Keechant L. Sewell, Commissioner, New York City Police Department (NYPD), announced the verdicts.
“Jonathan Deutsch connected with young children over the Internet and exploited them for his own sexual gratification. His conduct is criminal and deplorable,” stated United States Attorney Peace. “This Office is committed to vigorously prosecuting individuals who sexually exploit children and to ensuring that they are brought to justice. Today’s conviction should serve as yet another reminder as to the importance of educating our children about the risks of communicating with strangers online.”
“As the evidence presented at trial proved, Deutsch groomed children as young as 10-years-old and enticed them into sending explicit photos of themselves in pursuit of his sexual gratification. Parents and guardians are the best line of defense against Deutsch and predators like him. Have a conversation with your children; talk with them about being safe online, and tell them to ask for help the moment they are asked to do something that doesn't feel right,” stated Assistant Director-in-Charge Driscoll.
“The trust between teachers and young students is vitally important, and violation of that trust by criminal predators is truly reprehensible,” stated NYPD Commissioner Sewell. “This defendant’s appalling actions are a reminder to all parents to closely monitor their child’s online activity, and today’s conviction further proves that the NYPD and our law-enforcement partners will never abate our efforts to keep young people safe. I want to thank the U.S. Attorney for the Eastern District, the New York Field Office of the FBI, and every investigator who worked on this important case.”
As proven at trial, beginning in 2016, Deutsch joined Facebook groups through which he identified users who appeared from their profiles to be minors. Deutsch, using two separate Facebook accounts, messaged children in an effort to develop relationships with them. Using one of these accounts, he posed as a 33-year-old teacher from New York, and using the other, he posted as a 15 year old boy. When chatting with children, he showered them with compliments and pretended to be their boyfriend. Deutsch enticed the children to engage in sexually explicit conduct and then to send him videos and photos of that conduct. He also sent minors sexual photos that he represented to be of himself. Ultimately, Deutsch requested and received sexually explicit images or videos from at least four children, ranging in age from 10 to 16 years old.
The evidence at trial included testimony from law enforcement witnesses who examined Deutsch’s computer and three of the children who the defendant exploited, as well as evidence of his internet browser history, and Facebook records, including his messenger communications with victims and potential victims, as well his account information.
This prosecution is part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and the Department of Justice Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The government’s case is being handled by the Office’s Civil Rights Section. Assistant United States Attorneys Megan E. Farrell and Rachel A. Bennek are in charge of the prosecution.
The Defendant:
Jonathan Deutsch
Age: 38
Brooklyn, New YorkE.D.N.Y. Docket No. 18-CR-502 (FB)
Senior FARC Commander Extradited from Colombia to Face Charges of Operating a Violent Narcotics Distribution OrganizationRead the Press Release
Martin Leonel Perez Castro, also known as “Richard,” was extradited this morning to the United States from Colombia to face charges in the Eastern District of New York of leading a continuing criminal enterprise and participating in an international cocaine manufacture and distribution conspiracy. According to the indictment, court filings, and statements made in Court, the defendant was the commander of the Revolutionary Armed Forces of Colombia (FARC) 30th Front, a group that operated in southwestern Colombia. The defendant is scheduled to be arraigned this afternoon before United States Magistrate Judge Vera M. Scanlon.
Breon Peace, United States Attorney for the Eastern District of New York, Anne Milgram, Administrator, U.S. Drug Enforcement Administration (DEA), and Thomas Fattorusso, Executive Special Agent-in-Charge, Internal Revenue Service Criminal Investigation, New York Field Office (IRS-CI), announced the extradition and arraignment.
“As alleged, the defendant was a senior leader within FARC and used armed violence to protect a sophisticated operation that produced and distributed thousands of kilograms of cocaine on a global scale, all to help finance the paramilitary group’s mission to overthrow the Government of Colombia,” stated United States Attorney Peace. “The Department of Justice is committed to working with our international partners to dismantle destructive drug trafficking organizations, especially where their drug trafficking is used to finance violence and terrorism.”
Mr. Peace extended his appreciation to the DEA’s office in Bogota, Colombia, the United States Marshals Service, the United States Department of State, the Department of Justice’s Office of International Affairs, the Criminal Division’s Narcotic and Dangerous Drug Section (NDDS) Judicial Attachés in Bogotá, the Colombian National Police, the Government of Colombia, the New York City Police Department (NYPD), and the New York State Police (NYSP).
DEA Administrator Milgram said, “The charges today demonstrate that this violent narco-trafficking group imported tons of cocaine from Colombia into New York City. Through dedicated and tireless efforts, DEA and our global law enforcement partners have brought this senior FARC member to justice in the United States.”
“As an alleged senior FARC commander in Colombia, it’s charged that Martin Leonel Perez Castro used violence and terroristic tactics to expand the FARC’s narcotics empire while distributing thousands of pounds of cocaine across the United States and Europe. Today’s extradition is the beginning of a long road where Perez Castro will face American justice, and just as the FARC dissolved, so will his freedom,” said IRS-CI Special Agent in Charge Fattorusso.
The FARC was founded in 1964 as a left-wing paramilitary group dedicated to the violent overthrow of the Government of Colombia. Over decades of conflict, the FARC attacked Colombian government forces and used targeted killings, kidnapping, and other terrorist tactics to achieve its ends. In October 1997, the U.S. Secretary of State designated the FARC as a foreign terrorist organization (FTO). After the Government of Colombia and the FARC entered into a peace accord in 2016, the FARC formally dissolved. On November 30, 2021, the U.S. Secretary of State revoked the designation of the FARC as an FTO. The defendant’s conduct occurred prior to the 2016 peace accord.
The 30th Front, allegedly led by Perez Castro, supplied many thousands of kilograms of cocaine to other drug trafficking organizations for distribution to locations in the United States, Europe, and elsewhere, sometimes attacking rival drug trafficking groups or Colombian government forces to protect or expand FARC territory. As part of the investigation, law enforcement authorities seized over 2,500 kilograms of cocaine attributable to Perez Castro’s drug trafficking enterprise. The seizures included more than 1,000 kilograms of cocaine recovered at and near a large-scale laboratory that was co-owned by the defendant.
The extradition of Perez Castro is the result of an ongoing Organized Crime Drug Enforcement Task Forces (OCDETF) investigation led by the United States Attorney’s Office for the Eastern District of New York and the DEA. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking, weapons trafficking, and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply. OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
The charges in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty. If convicted, the defendant faces up to life in prison.
The government’s case is being handled by the Office’s International Narcotics and Money Laundering Section. Assistant United States Attorneys Saritha Komatireddy and Andrew D. Wang are in charge of the prosecution.
The Defendant:
MARTIN LEONEL PEREZ CASTRO, also known as “Richard”
Age: 51
ColombiaE.D.N.Y. Docket No. 14-CR-465 (S-2) (RJD)
Southampton Woman Pleads Guilty to Elder Fraud SchemeRead the Press Release
Earlier today, in federal court in Central Islip, Mara Ficarra pleaded guilty to conspiracy to commit mail, wire and bank fraud. The proceeding was held before United States District Judge Joanna Seybert. When sentenced, Ficarra faces up to five years in prison, as well as forfeiture and restitution of more than $1.5 million.
Breon Peace, United States Attorney for the Eastern District of New York, and Daniel B. Brubaker, Inspector-in-Charge, United States Postal Inspection Service, New York Division (USPIS). announced the guilty plea.
“Ficarra enriched herself by preying upon vulnerable elderly members of our community in an elaborate solicitation to immortalize the victims’ through inclusion of their biographies in reference publications she controlled, when in fact it was a scheme designed to steal their hard-earned savings. With today’s guilty plea, Ficarra has ensured that her own legacy is that of a convicted fraudster,” stated United States Attorney Peace. “This Office is committed to protecting the elderly from financial fraud and ending elder abuse in all its pernicious forms.” Mr. Peace thanked the Southampton Town Police Department for its assistance with the investigation.
“Mara Ficarra took advantage of the elderly, leading them to believe their legacies would be preserved in The Remington Registry of Outstanding Professionals. What she did instead was prey on innocent victims and continue to drain their bank accounts of over $1.5 million. Postal Inspectors will tirelessly pursue anyone who targets the elderly for fraud. Today’s guilty plea is proof of the commitment of Postal Inspectors and our partners in the U.S. Attorney’s Office to bring these scammers to justice,” stated USPIS Inspector-in-Charge Brubaker.
As set forth in court filings, Ficarra and a co-conspirator owned, operated and held senior management positions in various companies, including Remington Biographies, Inc., Remington Bookkeepers, Inc., and Mentorship America1, Inc. (collectively, the “Remington Entities”). The Remington Entities purported to publish reference publications containing biographical information of individuals across the country. Those publications included “Inspiring the Youth of America” and “The Remington Registry of Outstanding Professionals.”
From 2013 to December 2018, Ficarra caused letters and pamphlets to be mailed to victims, primarily the elderly, indicating that the victim’s biography would be published in one of the reference publications. The letters, addressed “Dear Nominee,” indicated, “Your 2 books and your plaque are paid for in full and ready for delivery. Please send a check for $14.00 dollars for shipping and handling.” The pamphlet described the publication and stated in part, “The Remington Registry of Outstanding Professionals is more than a who’s who. It is the ultimate expression of achievements, hardships, and dedication that professionals have made in their lives and careers…. Sit back and be read for a wonderful experience.” The mailings induced hundreds of victims to send checks as payment for inclusion in the reference publications. Ficarra then used the routing and bank account information on those checks to produce fraudulent checks for larger dollar amounts, which she then deposited into bank accounts she and a co-conspirator controlled at Citibank, Everbank, HSBC, JP Morgan Chase and Wells Fargo, among other financial institutions. Ficarra then promptly withdrew cash from the accounts, stealing more than $1.5 million dollars from the victim subscribers and financial institutions.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorney Catherine M. Mirabile is in charge of the prosecution, with the assistance of Assistant United States Attorney Madeline O’Connor who is handling forfeiture matters.
The Defendant:
MARA FICARRA
Age: 57
Southampton, New YorkE.D.N.Y. Docket No. 18-CR-679 (S-1) (JS)
Convicted Felon Sentenced to 11 Years in Prison for Possessing Firearm in Connection with the Shooting of Five Individuals Outside Nightclub in QueensRead the Press Release
Earlier today, in federal court in Brooklyn, Danari Aiken, a member of the Mac Baller Brims Bloods street gang, as well as the “From Nothing” street gang based in the Lincoln Towers development in East New York, Brooklyn, was sentenced by United States District Judge Pamela K. Chen to 11 years’ imprisonment for two counts of being a felon in possession of a firearm. According to court filings and facts presented during the sentencing proceeding, the first count of firearm possession related to a 2018 incident where Aiken attempted to murder a rival gang member and ended up firing at random into a crowd of people outside a Queens nightclub injuring five bystanders. The second count related to an incident where Aiken possessed a firearm while fleeing police from a traffic stop. In December 2021, Aiken pleaded guilty to both counts. Aiken was previously convicted in 2015 of possessing a loaded firearm.
Breon Peace, United States Attorney for the Eastern District of New York, announced the sentence.
“The defendant, who has previously been convicted of a felony crime, armed himself on multiple occasions, and one night, used that deadly weapon to endanger and wound many in his line of fire. Thankfully in this case, the victims suffered non-fatal injuries,” stated United States Attorney Peace. “Gun violence and mass shootings are a menace that this Office and our law enforcement partners are working tirelessly to stop by taking firearms out of the hands of violent individuals like the defendant, who learned today there are serious federal consequences for his actions.”
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, on December 7, 2018, Aiken attempted to ambush rival gang members outside of the Rose Lounge nightclub in Queens. When he arrived at the nightclub, Aiken flashed gang signs before attempting to shoot an individual at point-blank range. When that individual returned fire, Aiken fled but continued firing into the crowd. As a result of the shooting, five bystanders suffered non-fatal injuries. The firearm and ammunition used by Aiken were recovered by the NYPD at the scene.
On November 12, 2020, Aiken led NYPD officers on a high-speed chase in Brooklyn when they attempted to stop the vehicle he was driving for disobeying a traffic device. After smashing into a garbage truck and nearly striking several pedestrians, Aiken was apprehended when his path was blocked by a parked fire truck. The NYPD recovered a firearm in the vehicle which was later found to have Aiken’s DNA on it.
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 Jonathan Siegel and Lindsey R. Oken are in charge of the prosecution.
The Defendant:
DANARI AIKEN
Age: 29
Brooklyn, New YorkE.D.N.Y. Docket No. 21-CR-68 (PKC)
Funder of ISIS Foreign Fighter Sentenced to 15 Years' ImprisonmentRead the Press Release
Earlier today, in federal court in Brooklyn, Dilkhayot Kasimov, a citizen of Uzbekistan and resident of Brooklyn, was sentenced by United States District Judge William F. Kuntz, II to 15 years in prison for conspiring and attempting to provide material support to a designated foreign terrorist organization, the Islamic State of Iraq and al-Sham (ISIS). Kasimov was convicted of both counts following a one-week trial in September 2019.
Breon Peace, United States Attorney for the Eastern District of New York; Matthew Olsen, Assistant Attorney General of the Justice Department’s National Security Division; Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI); and Keechant L. Sewell, Commissioner, New York City Police Department (NYPD), announced the sentence.
“Today’s sentence demonstrates the significant consequences for those who help terrorist groups, including by facilitating travel of others to join ISIS,” stated United States Attorney Peace. “Kasimov was part of a group of individuals who sought to travel to Syria to join ISIS or to fund others who sought to become foreign fighters for ISIS. The Department of Justice and our law enforcement partners will continue working relentlessly to protect our country from terrorists and those who would provide support to them.”
“Kasimov is an ISIS supporter who collected and gave money to another individual to fund his travel to join the terrorist group. With this sentence, Kasimov is being held accountable for his crimes,” said Assistant Attorney General for National Security Matthew G. Olsen. “The National Security Division is committed to identifying and holding accountable those who seek to provide material support to foreign terrorist organizations. I would like to thank all of the agents, analysts, and prosecutors who are responsible for this case.”
"Providing financial support to potential ISIS-inspired foreign fighters comes with a stiff penalty. As Kasimov learned today, his actions will cost him 15 years behind bars. The FBI continues to make every effort to protect Americans at home and abroad and to bring other like-minded criminals to justice,” stated Assistant Director-in-Charge Driscoll.
“This sentence serves as a warning to anyone who seeks to fund or carry out acts of terror,” stated NYPD Commissioner Sewell. “The NYPD’s Intelligence Bureau and the Joint Terrorism Task Force will remain vigilant in our efforts to stem the flow of fighters and disrupt and dismantle the networks that support them, both here and abroad.”
According to court filings, in 2015, Kasimov’s co-consiprators Abdurasul Juraboev and Akhror Saidakhmetov planned to travel to Syria to fight on behalf of ISIS. Kasimov provided money – his own and cash collected by others – to help fund Saidakhmetov’s travel and expenses. On the evening of Saidakhmetov’s scheduled departure in February 2015, Kasimov drove to John F. Kennedy International Airport, met Saidakhmetov at Terminal 7 and handed him $1,600 in cash on behalf of himself, co-conspirator Abror Habibov and others.
Co-defendants Juraboev and Saidakahmetov were each sentenced to 15 years’ imprisonment, while co-defendant Azizjon Rakhmatov was sentenced to 12.5 years’ imprisonment. Habibov and co-defendant Akmal Zakirov are awaiting sentencing. A seventh co-conspirator, Dilshod Khusanov, who was charged in a separate indictment, pled guilty to conspiracy to provide material support to designated foreign terrorist organizations and is scheduled to be sentenced on July 5, 2022.
The government’s case is being handled by the Office’s National Security & Cybercrime Section. Assistant United States Attorneys Douglas M. Pravda, David K. Kessler and J. Matthew Haggans are in charge of the prosecution, with assistance provided by Trial Attorney Steven Ward of the National Security Division’s Counterterrorism Section.
The Defendant:
DILKHAYOT KASIMOV
Age: 34
Brooklyn, New YorkE.D.N.Y. Docket No. 15-CR-95 (S-3)(WFK)
Funder of ISIS Foreign Fighter Sentenced to 15 Years in PrisonRead the Press Release
A citizen of Uzbekistan and resident of Brooklyn was sentenced today to 15 years in prison for conspiring to and attempting to provide material support to a designated foreign terrorist organization, the Islamic State of Iraq and al-Sham (ISIS).
Dilkhayot Kasimov, 34, was convicted of both counts following a one-week trial in September 2019. According to court documents, in 2015, Kasimov’s co-conspirators Abdurasul Juraboev and Akhror Saidakhmetov planned to travel to Syria to fight on behalf of ISIS. Kasimov provided money – his own and cash collected by others – to help fund Saidakhmetov’s travel and expenses. On the evening of Saidakhmetov’s scheduled departure in February 2015, Kasimov drove to John F. Kennedy International Airport, met Saidakhmetov at the terminal and handed him $1,600 in cash on behalf of himself, co-conspirator Abror Habibov and others.
“Kasimov is an ISIS supporter who collected and gave money to another individual to fund his travel to join the terrorist group. With this sentence, Kasimov is being held accountable for his crimes,” said Assistant Attorney General for National Security Matthew G. Olsen. “The National Security Division is committed to identifying and holding accountable those who seek to provide material support to foreign terrorist organizations. I would like to thank all of the agents, analysts and prosecutors who are responsible for this case.”
“Today’s sentence demonstrates the significant consequences for those who help terrorist groups, including by facilitating travel of others to join ISIS,” said U.S. Attorney Breon Peace for the Eastern District of New York. “Kasimov was part of a group of individuals who sought to travel to Syria to join ISIS or to fund others who sought to become foreign fighters for ISIS. The Department of Justice and our law enforcement partners will continue working relentlessly to protect our country from terrorists and those who would provide support to them.”
“Providing financial support to potential ISIS-inspired foreign fighters comes with a stiff penalty,” said Assistant Director in Charge Michael J. Driscoll of the FBI New York Field Office. “As Kasimov learned today, his actions will cost him 15 years behind bars. The FBI continues to make every effort to protect Americans at home and abroad and to bring other like-minded criminals to justice.”
Co-defendants Juraboev and Saidakahmetov were each sentenced to 15 years’ imprisonment, while co-defendant Azizjon Rakhmatov was sentenced to 12.5 years’ imprisonment. Habibov and co-defendant Akmal Zakirov are awaiting sentencing. A seventh co-conspirator, Dilshod Khusanov, who was charged in a separate indictment, pleaded guilty to conspiracy to provide material support to designated foreign terrorist organizations and is scheduled to be sentenced on July 5.
Assistant U.S. Attorneys Douglas M. Pravda, David K. Kessler and J. Matthew Haggans for the Eastern District of New York are prosecuting the case, with assistance provided by Trial Attorney Steven Ward of the National Security Division’s Counterterrorism Section.
The FBI investigated the case, with valuable assistance provided by the New York City Police Department.
Two Men Charged in Indictment with Distributing Narcotics, Including Fentanyl, and Causing the Deaths of Four Persons on the East End of Long Island in the Summer of 2021Read the Press Release
A seven-count indictment was unsealed today in federal court in Central Islip charging Marquis Douglas, also known as “Prince” and “President,” and Jesse Pace, also known as “Jah,” with conspiring to distribute fentanyl, cocaine, heroin and crack cocaine. The indictment also charges Douglas and Pace with distribution of controlled substances resulting in four separate deaths on August 13, 2021. The indictment separately charges Douglas with the possession of fentanyl and cocaine in Suffolk County in May 2022. Pace was arrested this morning and will be arraigned this afternoon before United States Magistrate Judge Steven L. Tiscione. Douglas, who is already in federal custody on related charges, will be arraigned at a later date.
Breon Peace, United States Attorney for the Eastern District of New York, Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Raymond A. Tierney, Suffolk County District Attorney, announced the charges.
“The defendants’ drug sales caused four overdose deaths in a single day last summer, contributing to the tragic history of the opioid epidemic that has claimed too many lives on Long Island,” stated United States Attorney Peace. “Dealing deadly drugs in this district will be met with severe consequences. At the same time, we are working to reduce the availability of these drugs and prevent new addictions in our efforts to save lives. It is our hope that the federal prosecution of Douglas and Pace will bring some solace to the families of the four victims who died as a result of the defendants’ actions.”
Mr. Peace also extended his thanks to the Riverhead Police Department for their assistance in investigation.
“Tragically, as overdose deaths continue to rise, people are still peddling these poisons into our communities. Fortunately our focus on the illegal drug epidemic hasn't waned, and bringing Douglas and Pace to justice shows our pursuit of these dealers hasn't either,” stated FBI Assistant Director-in-Charge Driscoll.
“We thank the U.S. Attorney’s Office and the FBI for their assistance in helping us get these dangerous drug dealers off of our streets,” stated District Attorney Tierney. “These defendants, while in federal custody, will no longer be able to sell fentanyl and other dangerous drugs to unwitting customers and pose a danger to the community.”
The charges arise from Douglas and Pace allegedly distributing cocaine and a fentanyl analogue, flourofentanyl, which led to a series of overdose deaths, on the East End of Long Island in 2021. As set forth in the indictment and other court filings, Douglas and Pace allegedly engaged in a years’ long conspiracy to distribute over five kilograms of cocaine, one kilogram of heroin, 280 grams of crack cocaine, 40 grams of fentanyl and a quantity of a fentanyl analogue. In August of 2021, Douglas and Pace distributed cocaine laced with a fentanyl analogue in Greenport, New York. When their drugs were re-distributed at the street level, it caused four fatal overdoses on August 13, 2021. The bodies were found the following day. More recently, while travelling as a passenger in a vehicle that was stopped for a traffic infraction in Suffolk County on May 5, 2022, Douglas was found in possession of distribution quantities of cocaine and fentanyl.
The charges in the indictment are allegations, and the defendants are presumed innocent unless and until proven guilty. If convicted, each defendant faces up to life imprisonment.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorneys Michael R. Maffei and Andrew P. Wenzel, along with Special Assistant United States Attorney Dana Gremaux are in charge of the prosecution.
The Defendants:
MARQUIS DOUGLAS (also known as “Prince” and “President”)
Age: 36
Riverhead, New YorkJESSE PACE (also known as “Jah”)
Age: 38
Riverhead, New YorkE.D.N.Y. Docket No. 22-CR-246 (JS)
Caris Life Sciences Pays over $2.8 Million to Settle False Claims Act Allegations from Delay in Submission of Genetic Cancer Screening TestsRead the Press Release
Caris Life Sciences, Inc. (Caris) has agreed to pay $2,886,674.86 to resolve allegations that it violated the False Claims Act in an alleged nationwide scheme to improperly bill Medicare for laboratory tests known as “Caris Molecular Intelligence” and the “ADAPT Biotargeting System.”
Breon Peace, United States Attorney for the Eastern District of New York, Scott J. Lampert, Special Agent-in-Charge, U.S. Department of Health and Human Services, Office of the Inspector General, New York Region (HHS-OIG) and Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI) announced the settlement.
“In this case, tests for cancer patients were delayed for no reason other than to circumvent a Medicare requirement and allow improper payment to Caris,” stated United States Attorney Peace. “We will continue to enforce Medicare rules to protect the program and its vital role in our health care system, especially for the elderly and vulnerable.”
Mr. Peace expressed his gratitude for the support of the United States Department of Health and Human Services for their assistance in investigating these important claims.
“This settlement is another example of our commitment to holding the health care industry accountable for proper billing practices,” stated HHS-OIG Special Agent-in-Charge Lampert. “Along with our law enforcement partners, HHS-OIG will continue to ensure that individuals and entities billing federal health care programs do so in an honest manner.”
“Caris Life Sciences intentionally deceived the public health care system to benefit from unlawful payments. Medicare fraud, in all its many forms, puts public health at risk and hands taxpayers the bill. We will continue to work with our partners to ensure programs like Medicare remain free from fraudulent activity,” stated Assistant Director-in-Charge Driscoll.
Caris, a molecular science company headquartered in Texas, developed a series of laboratory tests primarily for cancer patients to detect the activity of certain genes within a breast cancer tumor to predict the risk of breast cancer recurrence in patients. These predictive genetic marker tests are used by oncologists and other physicians to assist in determining appropriate treatment options for cancer patients.
During the time period covered by the settlement, Medicare’s 14-Day Rule prohibited laboratories from separately billing Medicare for tests performed on specimens if a physician ordered the test within 14 days of the patient’s discharge from a hospital stay either in an outpatient or inpatient setting. However, if the test was performed more than 14 days after discharge, then Medicare’s 14-Day Rule permitted laboratories to bill Medicare directly for the test.
The United States contends that Caris perpetrated a scheme to evade Medicare regulations when submitting claims to the Centers for Medicare & Medicaid Services (CMS) for its predictive marker tests to circumvent Medicare’s 14-Day Rule (which establishes who may bill Medicare for certain laboratory services) in three ways:
- Caris sought direct reimbursement from CMS for claims on behalf of Medicare beneficiaries, when tests were ordered and submitted for testing within 14 days after an inpatient discharge. For inpatient beneficiaries, hospitals receive a lump-sum payment CMS called the Diagnosis-Related Group (“DRG”) payment. By submitting separate claims for the laboratory tests, Medicare paid twice for the same service, as part of the DRG and in a direct payment to Caris.
- Caris sought direct reimbursement from CMS for claims on behalf of Medicare beneficiaries, when Caris failed to discourage providers who ordered testing within 14 days after an inpatient or outpatient discharge from canceling the order and placing a new order for testing after the 14-day time period had elapsed; and
- Caris sought direct reimbursement from CMS for tests ordered within 14 days of a beneficiary’s out-patient procedure.
The civil settlement includes the partial resolution of one action and final resolution of another brought under the qui tam or whistleblower provisions of the False Claims Act against Caris. Under the qui tam provisions of the False Claims Act, a private party can file an action on behalf of the United States and receive a portion of the settlement if the government takes over the case and reaches a monetary agreement with the defendant. The qui tam cases are captioned United States ex rel. Doe v. (UNDER SEAL) and United States ex rel. Caughron v. CDx Holdings, Inc. f/k/a Caris Life Science, Civil Action No. 18-CV-0352 (E.D.N.Y).
The claims resolved by the settlement are allegations only and there has been no determination of liability.
The government’s case was handled by Senior Litigation Counsel Deborah B. Zwany with assistance from Affirmative Civil Enforcement Auditor Michael Gambrell. The Office of Inspector General at the Department of Health and Human Services and the Federal Bureau of Investigation assisted in the investigation of these cases.
Long Island MS-13 Gang Member Pleads Guilty to Two Murders, an Attempted Murder, and Drug Conspiracy ChargesRead the Press Release
Earlier today, in federal court in Central Islip, Jonathan Hernandez, a member of the Sailors Locos Salvatruchas Westside (Sailors) 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 January 28, 2016 murder of Michael Johnson, the April 29, 2016 murder of Oscar Acosta, an attempted murder on August 10, 2016, and a conspiracy to distribute cocaine and marijuana. The proceeding was held before United States Magistrate Judge Anne Y. Shields.
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 service to a violent gang and without regard for human life, the defendant and his MS-13 cohorts murdered two people, attempted to murder a third victim, and distributed dangerous narcotics,” stated United States Attorney Peace. “With today’s guilty plea, this Office and our law enforcement partners continue to dismantle MS-13, gang member by gang member, bringing them to justice for their horrendous crimes and we will not rest until our communities are safe from gang violence. Furthermore, it is our hope that the families of the victims find some consolation that Hernandez has been held to account for his crimes.”
“It is evident by these incomprehensible crimes, that MS-13 members have zero regard for human life and their violence has no limits,” Suffolk County Police Commissioner Harrison said. “We will continue to work with our law enforcement partners to decimate this transnational gang and I thank those involved in this case for their tireless efforts to hold this individual accountable for his heinous actions.”
According to prior court filings and statements by the defendant at the guilty plea proceeding, on January 28, 2016, a Sailors clique leader and other MS-13 members and associates were present at the Jocorena Deli in Brentwood, where they saw 29-year-old Michael Johnson, and claimed to recognize him as a member of the rival Bloods street gang. At that point, Johnson was marked as their “food,” meaning they were going to kill him. After receiving the requisite approval from the New York leader of the Sailors clique to commit this murder, Hernandez and several other MS-13 members were contacted, informed of the plan to kill Johnson, and instructed to bring weapons, including a machete and a baseball bat, to a wooded area near Second Avenue in Brentwood. Johnson was lured to the secluded meeting location where MS-13 members and associates, including Hernandez, struck Johnson with the baseball bat, stabbed him with a knife, and took turns hacking him with a machete. Johnson’s body was recovered by the SCPD on February 2, 2016.
In early 2016, Hernandez and his fellow Sailors clique members decided to kill 19-year-old Oscar Acosta because they suspected that he was associating with the rival 18th Street gang. The Sailors clique leader assigned roles as to which members would take the lead in planning and carrying out the murder. On April 29, 2016, several MS-13 members encountered Acosta in a wooded area near an elementary school in Brentwood, where he had been lured under the guise of smoking marijuana. They beat Acosta with tree limbs, knocking him unconscious. They then bound Acosta’s hands and feet, wrapped an article of clothing around his mouth to prevent him from making noise, and summoned other MS-13 members, including Hernandez. The MS-13 members loaded Acosta into the trunk of a car and drove to a more secluded area in Brentwood, near an abandoned psychiatric hospital. They took Acosta, who was still alive, out of the car and carried him into the woods, where they all took turns hacking him to death with a machete. The MS-13 members then buried Acosta’s body in a shallow grave. Acosta’s body was discovered by law enforcement on September 16, 2016.
On August 10, 2016, Hernandez and other MS-13 members attempted to kill suspected rival gang members in Brentwood. Hernandez and another MS-13 member, both armed with handguns, approached a house on Lukens Avenue, where the suspected rival gang members were standing outside, and fired numerous shots in their direction. No one was struck, but a stray bullet entered a neighbor’s house and struck the headboard of a bed in which the neighbor was sleeping. Hernandez also pleaded guilty to participating in a drug distribution conspiracy, admitting that between April 2016 and October 2017, he and other members of the Sailors clique conspired to distribute cocaine and marijuana for the financial benefit of the MS-13.
When sentenced, Hernandez faces a maximum term of life in prison.
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:JONATHAN HERNANDEZ (also known as “Travieso,” and “Kraken”)
Age: 24
Brentwood, New YorkE.D.N.Y. Docket No. 16-CR-403 (GRB)
Queens Man Sentenced to 51 Months in Prison for Defrauding Pharmaceutical ManufacturerRead the Press Release
Earlier today, in federal court in Central Islip, Arkadiy Khaimov was sentenced by United States District Judge Joan M. Azrack to 51 months in prison for defrauding a pharmaceutical manufacturer of approximately $7.2 million by submitting fraudulent claims under the manufacturer’s Co-pay Coupon Program. As part of the sentence, Khaimov was ordered to forfeit approximately $489,000 as proceeds involved in the fraudulent scheme and to pay restitution of approximately $7.2 million. In August 2020, Khaimov pleaded guilty to conspiracy to commit mail and wire fraud.
Breon Peace, United States Attorney for the Eastern District of New York, announced the sentencing.
“Khaimov selfishly stole from a program that was intended to reduce the cost of a medication to uninsured individuals and those in need of financial assistance, who were suffering from a serious and potentially life-threatening disease,” stated United States Attorney Peace. “Today’s sentence sends a message that incarceration and significant financial penalties are the criminal justice system’s remedies for those who would abuse such beneficial programs to benefit themselves.”
Mr. Peace expressed his appreciation to the Federal Bureau of Investigation, New York Field Office, the United States Postal Inspection Service and Internal Revenue Service-Criminal Investigation for their exemplary work on the case.
The pharmaceutical manufacturer, referred to in the indictment as “John Doe Company 1,” established the Co-pay Coupon Program to reimburse pharmacies for dispensing a prescription medication, which was described as a “priceless breakthrough” and potential “cure” for a serious and possibly deadly disease, to the uninsured and those in need of financial assistance. Between February 2017 and July 2018, Khaimov and his co-conspirators used the computers of pharmacies they operated in Queens and Manhattan to submit claims for approximately $7.2 million in reimbursements under the Co-pay Coupon Program for medications that the pharmacies never actually dispensed. In some cases, Khaimov and his co-conspirators fraudulently used the credentials of a Nassau County-based physician to submit the false claims.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorneys Bradley T. King, Madeline O’Connor and Department of Justice Trial Attorney Andrew Estes are in charge of the prosecution.
The Defendant:
ARKADIY KHAIMOV (also known as “Alex”)
Age: 39
Forest Hills, QueensE.D.N.Y. Docket No. 20-CR-267 (JMA)
Former Long Island Resident Indicted for Massive Fraud Scheme Involving Sports BettingRead the Press Release
A two-count indictment was unsealed today in United States District Court for the Eastern District of New York charging Cory Zeidman with conspiracy to commit wire fraud, mail fraud and money laundering conspiracy in connection with a sports betting fraud scheme he operated from Long Island and Florida. The defendant was arrested this morning and Florida and will make his initial appearance at the federal courthouse in Miami.
Breon Peace, United States Attorney for the Eastern District of New York, Ricky Patel, Acting Special Agent-in-Charge, Homeland Security Investigations (HSI), New York, Patrick Ryder, Commissioner, Nassau County Police Department, and Daniel Brubaker, United States Postal Inspector in Charge, announced the charges.
“As alleged, Zeidman defrauded his victims, stole their life savings and persuaded them to drain their retirement accounts to invest in his bogus sports betting group, all so he could spend it on international vacations, a multi-million dollar residence and poker tournaments,” stated United States Attorney Breon Peace. “Today’s indictment serves as a reminder to all of us to be wary of so-called investment opportunities that purport to have inside information, as they are really a gamble not worth taking.”
“As alleged, Zeidman preyed on individuals who were led to believe he had inside information that would lead them to easy money. In reality, he was selling nothing but lies and misinformation— bilking millions from victims along the way, leaving their lives in financial ruin and their bank accounts empty,” said HSI New York Acting Special Agent in Charge Ricky J. Patel. “HSI will continue to work together with our partners to follow the money and tackle complex financial investigations to bring to justice fraudsters like Zeidman, who finance their lavish lifestyles by concocting ways to bamboozle the innocent when their only real goal is lining their pockets with ill-gotten cash.”
“Mr. Zeidman took advantage of the public’s interest to “get in on the ground floor” of his sports betting organization. He devised a criminal scheme to fatten his pockets using nothing more than people’s love for sports and his clever words wrapped around a fraud. Postal Inspectors remind investors to thoroughly review all investment offers to ensure they are not left with a line of empty promises and a drained bank account,” said Inspector in Charge Brubaker.
The defendant was the leader of an organization that placed national radio advertisements to lure victims to retain the organization for sports betting advice. The victims were led to believe that the organization had privileged information that made betting on sporting events a no risk proposition. Victims were required to pay a fee to obtain this information which, unbeknownst to them, was either fictitious or obtained from an internet search by defendant and his co-conspirators. Many victims lost their life savings.
The defendant used the following aliases: Richard Barnes, Walter Barr, Mr. Carlyle, Ray Palmer, Rick Cash, Elliot Stern, Gordon Howard, David Coates, Simon Coates, Paul Knox, Mark Lewis, Joel Orenstein and Steve Nash. Some of the company names used by defendant’s scheme were Gordon Howard Global, Ray Palmer Group and Grant Sports International.
Any individuals who believe they may have been the victim of the alleged crimes perpetrated in connection with this release can contact HSI at 1-866-347-2423.
The charges in the indictment are merely allegations, and the defendant is presumed innocent unless and until proven guilty.
The government’s case is being prosecuted by Assistant United States Attorneys Anthony Bagnuola, Charles P. Kelly and Diane Beckmann.
The Defendant:
CORY ZEIDMAN
Age: 61
Boca Raton, FloridaE.D.N.Y. Docket No. 22-CR-228 (JS)
Federal Jury Convicts High-Level ISIS Member of Providing Material Support to a Foreign Terrorist Organization, Including Two Counts Resulting in DeathRead the Press Release
A New York man was found guilty by a federal jury in Brooklyn, following a three-week trial before U.S. District Judge Nicholas G. Garaufis, of one count of conspiracy to provide material support to the Islamic State of Iraq and al-Sham (ISIS), and five substantive counts of providing material support to ISIS.
According to court documents and evidence presented at trial, Mirsad Kandic, 40, of Brooklyn, New York, and Kosovo, Bosnia and Herzegovina, was a high-ranking member of ISIS, a designated foreign terrorist organization. He had multiple responsibilities within the global terrorist organization, including recruiting foreign fighters, trafficking foreign fighters from the West through Turkey and into Syria, and obtaining weapons, military equipment, maps, money, and false identifications for ISIS fighters. In carrying out these responsibilities, the defendant worked directly with ISIS emirs and battlefield commanders, including Bajro Ikanovic, who commanded an ISIS training camp in Syria beginning in or around 2014. Ikanovic, in turn, reported to Omar Shishani, then the top military commander for ISIS, and a key advisor to Abu Bakr al-Baghdadi, who was, at the time, the leader of ISIS and the self-declared Caliph of the Islamic State.
According to the testimony of 36 witnesses and evidence drawn from six continents, Kandic attempted to leave the United States to fight jihad as early as the summer of 2012. He was denied boarding at the United States point of departure and notified that he was on the no-fly list. In January 2013, Kandic attempted to fly from Toronto, Canada, to Istanbul, Turkey, on a direct flight. He was again denied boarding. The defendant then took a two-day Greyhound bus ride from New York City to Monterrey, Mexico, in November 2013, and flew through Panama, Brazil, Portugal, Germany, Kosovo, and Turkey before arriving in Syria at the end of 2013. In Syria, Kandic joined ISIS and became a fighter for the group in Haritan, an ISIS stronghold in the outskirts of Aleppo, wielding Russian-made PK machine guns and AK-47 assault rifles.
ISIS leadership then directed Kandic to Turkey to take up the role of smuggling foreign fighters and weapons into Syria from abroad, and to serve as an emir for ISIS media. Kandic disseminated ISIS recruitment messages and gruesome propaganda using more than 120 Twitter accounts. For example, Kandic sent out an ISIS-produced “documentary” titled the “Flames of War.” This video celebrated ISIS conquests and macabre executions of ISIS captives, including instances where victims were forced to dig their own graves before being summarily executed by gunshot. The defendant tweeted that this video was the “best thing ever seen on screen.”
Kandic was also a dedicated and prolific recruiter of foreign fighters for ISIS. He sent thousands of radicalized ISIS volunteer fighters from Western countries into ISIS-controlled territories in Syria and elsewhere in the Middle East. This included a fellow New Yorker who became an ISIS sniper and sniper trainer, and another individual who became an emir for ISIS safehouses in the Idlib province of Syria.
One foreign fighter recruited by the defendant was Jake Bilardi of Australia. Bilardi contacted the defendant in June 2014 for assistance in traveling to Syria to join ISIS. Kandic provided Bilardi – who had just turned 18 years old and had never traveled internationally before – with instructions and guidance for reaching Istanbul, Turkey. Kandic then arranged for Bilardi to be picked up at the airport in Istanbul and smuggled him into Syria. Kandic maintained contact with Bilardi as he became an ISIS fighter and ISIS suicide bomber. Bilardi went on to commit a suicide truck attack with fellow ISIS members on March 11, 2015, in Ramadi, Iraq, killing himself, more than 30 Iraqi soldiers, and an Iraqi policeman. Prior to the attack, the defendant wished Bilardi well and stated, “May Allah make [their] inner organs implode.” After the attack, Kandic praised Bilardi, both on Twitter and to a co-conspirator. In audio recordings referencing similar suicide attacks, the defendant praised the killing of more than 90 people as “good.”
In addition, Kandic provided battlefield intelligence and maps to ISIS battlefield commanders and fighters on the ground, including Ikanovic. Kandic also conspired with Ikanovic and other ISIS members in Syria to dig tunnels under the Turkey-Syria border to move 800-1000 fighters into ISIS at a time. Kandic also shaped the information environment in which ISIS operated by enforcing ISIS media and publicity discipline. For example, the defendant directed other ISIS supporters to refrain from posting any information about the success (or failure) of ISIS recruitment efforts as well as to minimize any reporting about ISIS military action. Kandic also managed money for ISIS fighters in Syria, including two ISIS fighters who gave the defendant their bank cards, from which bank records showed more than $40,000 was transacted. Kandic smuggled weapons to ISIS in Syria, including a rifle scope for an ISIS sniper. Kandic operated a private market via Telegram – called “Khilafah (Caliphate) Market” – for which the defendant was the group administrator with authority to restrict access to the group. Members frequently posted firearms and military equipment for sale, including mortars, suicide belts, assault rifles, and other firearms. Among the members of the defendant’s private Telegram market was Abu Luqman, who, at the time, was the ISIS governor for the Raqqa province, ISIS’s de facto capital in Syria.
Kandic was arrested in Sarajevo, Bosnia and Herzegovina. He was convicted of one count of conspiracy to provide material support to ISIS and five substantive counts of providing material support to ISIS in the forms of personnel, including himself, Bilardi, and others, as well as services, weapons, property, and equipment, and false documentation and identification. At sentencing, he faces a maximum sentence of life imprisonment on the two counts resulting in death, and 20 years’ imprisonment on each of the other four charges. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant U.S. Attorneys Saritha Komatireddy, J. Matthew Haggans, and Josh Hafetz for the Eastern District of New York are prosecuting the case, with valuable assistance provided by Trial Attorney Jennifer Levy of the National Security Division’s Counterterrorism Section and paralegals Matt Wulf and Huda Abouchaer.
The Justice Department’s Office of International Affairs, the FBI’s Legal Attachés abroad, and foreign authorities in multiple countries on three continents provided critical assistance in this case. The Department of State’s Regional Security Office in Sarajevo provided critical assistance in this case. In addition, the Bosnian and Herzegovina State Investigation and Protection Agency, the Bosnian and Herzegovina State Intelligence and Security Agency, the Bosnian and Herzegovina Foreigners’ Affairs Service, the Bosnian and Herzegovina State Prosecutor’s Office, the Ministry of Justice of Bosnia and Herzegovina, the Australian Federal Police, the Victoria Police (Australia), the Australian Border Force, the Australian Department of Foreign Affairs and Trade, the Australian Attorney-General’s Department, the Prosecutor General’s Office of the Republic of Kazakhstan, the Iraqi Ministry of Defense, Joint Operations Command in Iraq, and the FBI Legal Attaché Offices in Sarajevo, Canberra, Nur-Sultan, and Baghdad, provided extraordinary assistance in the investigation and prosecution. The Ministry of Justice for the Republic of Finland, and Federal Office of Justice in the Federal Republic of Germany, the Department of Justice & Constitutional Development in the Republic of South Africa, and the central authorities responsible for mutual legal assistance in Albania, North Macedonia, Montenegro, and Ukraine; and the FBI’s Legal Attaché Offices in those countries provided valuable support in the investigation.
The department also thanks the Ministry of Justice for the Republic of Finland, the Stuttgart Police Department and Federal Office of Justice in the Federal Republic of Germany, the Department of Justice & Constitutional Development in the Republic of South Africa, and the central authorities responsible for mutual legal assistance in Albania, North Macedonia, Montenegro, and Ukraine, as well as FBI’s Legal Attaché Offices in those countries for their assistance in the investigation.
Federal Jury Convicts High Level ISIS Member of Six Counts of Material Support to a Foreign Terrorist Organization, Including Two Counts Resulting in DeathRead the Press Release
A federal jury in Brooklyn returned a guilty verdict yesterday against Mirsad Kandic on one count of conspiracy to provide material support to the Islamic State of Iraq and al-Sham (ISIS), and five substantive counts of providing material support to ISIS in the form of personnel, including himself, Australian citizen Jake Bilardi, and others, as well as services, weapons, property, equipment, false documentation and identification, all between January 2013 and June 2017, when the defendant was arrested in Sarajevo, Bosnia and Herzegovina. The verdict followed a three-week trial before United States District Judge Nicholas G. Garaufis. When sentenced, Kandic faces a maximum sentence of life imprisonment on the two counts of the indictment resulting in death, and 20 years’ imprisonment on each of the other four charges.
Breon Peace, United States Attorney for the Eastern District of New York, Matthew Olsen, Assistant Attorney General of the Justice Department’s National Security Division, Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), Ricky J. Patel, Acting Special Agent-in-Charge, Homeland Security Investigations, New York (HSI), and Keechant L. Sewell, Commissioner, New York City Police Department (NYPD), announced the verdict.
“Kandic was a high-ranking member of ISIS who recruited countless fanatics, helping them travel to Syria and other territories to become ISIS fighters. In addition to fueling the front lines of the ISIS army, the defendant aided the extremist group in many other ways, including by providing weapons and spreading its violent propaganda across the globe, to further its bloody and brutal terrorist campaign. Kandic’s actions were directly linked to attacks and significant loss of life,” stated United States Attorney Peace. “With today’s verdict, Kandic has been held accountable for his barbaric crimes. This Office and our law enforcement partners will never rest in our mission to protect the United States from those who threaten its safety and security.”
“Kandic helped to build a secret supply chain of willing fighters for ISIS, recruiting them over social media and ensuring their illegal transit into Syria so they could wage war. He played a vital role in the terrorist group's communications network allowing ISIS to maintain its stranglehold on territory within Syria, and propagating ISIS fighters around the world to plot attacks. Although the threat posed by ISIS has evolved, we must continue our pursuit and punishment of those who support the terrorist organization,” stated Assistant Director-in-Charge Driscoll.
“Kandic’s blind loyalty and dedication to engage in jihad was evident in his determination to join and then support the horrific actions of ISIS, whose terror campaigns have resulted in countless deaths around the world. For years, Kandic was deeply entrenched, orchestrating the movement of personnel and materiel and even helping to shape the messaging and image of ISIS in an effort to recruit and radicalize new followers,” said Homeland Security Investigations (HSI) New York Acting Special Agent in Charge Ricky J. Patel. “The verdict returned today is the result of years of multi-jurisdictional cooperation between international and domestic partners. HSI will continue to work alongside our partners to ensure the safety of individuals around the world from the actions of radical terrorists and bring those who seek to engage in terrorist acts to justice.”
As proven at trial, the evidence and testimony established that the defendant was a high-ranking member of ISIS—the deadliest terrorist organization in the world. He had multiple responsibilities within the global terrorist organization, including recruiting foreign fighters, trafficking foreign fighters from the West through Turkey and into Syria, and obtaining weapons, military equipment, maps, money, and false identifications for ISIS fighters. In carrying out these responsibilities, the defendant worked directly with ISIS emirs and battlefield commanders, including Bajro Ikanovic, who commanded an ISIS training camp in Syria beginning in or around 2014. Ikanovic, in turn, reported to Omar Shishani, then the top military commander for ISIS, and a key advisor to Abu Bakr al-Baghdadi, at the time the leader of ISIS and the self-declared Caliph of the Islamic State.
The witness testimony—which included 36 witnesses and evidence drawn from six continents—established the following: Kandic attempted to leave the United States to fight jihad as early as the summer of 2012. He was denied boarding and notified that he was on the No-Fly List. In January 2013, Kandic attempted to fly from Toronto, Canada to Istanbul, Turkey on a direct flight. He was again denied boarding. The defendant then took a two-day Greyhound bus ride from New York City to Monterrey, Mexico, in November 2013, and flew through Panama, Brazil, Portugal, Germany, Kosovo, and Turkey before arriving in Syria at the end of 2013. In Syria, Kandic joined ISIS and became a fighter for the group in Haritan, an ISIS stronghold in the outskirts of Aleppo, wielding Russian-made PK machine guns and AK-47 assault rifles.
ISIS leadership then directed Kandic to Turkey to take up the role of smuggling foreign fighters and weapons into Syria from abroad, and to serve as an emir for ISIS media. Kandic disseminated ISIS recruitment messages and gruesome propaganda using more than 120 Twitter accounts. For example, Kandic sent out an ISIS-produced “documentary” titled the “Flames of War.” This video celebrated ISIS conquests and macabre executions of ISIS captives, including instances where victims were forced to dig their own graves before being summarily executed by gunshot. The defendant tweeted that this video was the “best thing ever seen on screen.”
Kandic was also a dedicated and prolific recruiter of foreign fighters for ISIS. He sent thousands of radicalized ISIS volunteer fighters from Western countries into ISIS-controlled territories in Syria and elsewhere in the Middle East. This included a fellow New Yorker who became an ISIS sniper and sniper trainer, and another individual who became an emir for ISIS safehouses in the Idlib province of Syria.
One foreign fighter recruited by the defendant was Jake Bilardi of Australia. Bilardi contacted the defendant in June 2014 for assistance in traveling to Syria to join ISIS. Kandic provided Bilardi—who had just turned 18 years old and had never traveled internationally before—with instructions and guidance for reaching Istanbul, Turkey. Kandic then arranged for Bilardi to be picked up at the airport in Istanbul and smuggled him into Syria. Kandic maintained contact with Bilardi as he became an ISIS fighter and ISIS suicide bomber. Bilardi went on to commit a suicide truck attack with fellow ISIS members on March 11, 2015, in Ramadi, Iraq, killing himself, more than 30 Iraqi soldiers, and an Iraqi policeman. Prior to the attack, the defendant wished Bilardi well and stated, “May Allah make there inner organs implode.” After the attack, Kandic praised Bilardi, both on Twitter and to a co-conspirator. In audio recordings referencing similar suicide attacks, the defendant praised the killing of more than 90 people as “good.”
In addition, Kandic provided battlefield intelligence and maps to ISIS battlefield commanders and fighters on the ground, including Ikanovic. Kandic also conspired with Ikanovic and other ISIS members in Syria to dig tunnels under the Turkey-Syria border to move 800-1000 fighters into ISIS at a time. Kandic also shaped the information environment in which ISIS operated by enforcing ISIS media and publicity discipline. For example, the defendant directed other ISIS supporters to refrain from posting any information about the success (or failure) of ISIS recruitment efforts as well as to minimize any reporting about ISIS military action. Kandic also managed money for ISIS fighters in Syria, including two ISIS fighters who gave the defendant their bank cards, from which bank records showed more than $40,000 in transactions. Kandic smuggled weapons to ISIS in Syria, including a rifle scope for an ISIS sniper. Kandic operated a private market via Telegram—called “Khilafah (Caliphate) Market”—for which the defendant was the group administrator with authority to restrict access to the group. Members frequently posted firearms and military equipment for sale, including mortars, suicide belts, assault rifles, and other firearms. Among the members of the defendant’s private Telegram market was Abu Luqman, who, at the time, was the ISIS governor for the Raqqa province, ISIS’s de facto capital in Syria.
The government’s case is being handled by the Office’s National Security and Cybercrime Section. Assistant United States Attorneys Saritha Komatireddy, J. Matthew Haggans, and Josh Hafetz are in charge of the prosecution, with assistance from Trial Attorney Jennifer Levy of the Counterterrorism Section of the National Security Division of the Department of Justice and Office Paralegals Matt Wulf and Huda Abouchaer.
The Justice Department’s Office of International Affairs, the FBI’s Legal Attachés abroad, and foreign authorities in multiple countries on three continents provided critical assistance in this case. The Office extends its appreciation to the Bosnian State Investigation and Protection Agency, the Bosnian State Intelligence and Security Agency, the Bosnian Foreigner’s Affairs Service, Ministry of Justice of Bosnia and Herzegovina, the Bosnian State Prosecutor’s Office, the Australian Federal Police, the Victoria Police (Australia), the Australian Border Force, the Australian Department of Foreign Affairs and Trade, the Australian Attorney-General’s Department, the Prosecutor General’s Office of the Republic of Kazakhstan, the Iraqi Ministry of Defense, Joint Operations Command in Iraq, and the FBI Legal Attaché Offices in Sarajevo, Canberra, Nur-Sultan, and Baghdad, for their extraordinary assistance in the investigation and prosecution. The Office also thanks the Ministry of Justice for the Republic of Finland, the Stuttgart Police Department and Federal Office of Justice in the Federal Republic of Germany, the Department of Justice & Constitutional Development in the Republic of South Africa, and the central authorities responsible for mutual legal assistance in Albania, North Macedonia, Montenegro, and Ukraine, as well as the FBI’s Legal Attaché Offices in those countries for their assistance in the investigation.
The Defendant:
MIRSAD KANDIC
Age: 40
Brooklyn, New York; KosovoE.D.N.Y. Docket No. 17-CR-449 (NGG)
Staten Island Man Sentenced for Distributing Heroin and FentanylRead the Press Release
Earlier today, in federal court in Brooklyn, Nalerton Charles, also known as “Lite,” was sentenced by United States District Judge I. Leo Glasser to 210 months’ imprisonment for distribution and possession with intent to distribute narcotics. Charles pleaded guilty to the charge in November 2021.
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), Keechant L. Sewell, Commissioner, New York City Police Department (NYPD), and Kevin P. Bruen, Superintendent, New York State Police (NYSP), announced the sentence.
“Charles contributed to the terrible opioid epidemic in our district by selling heroin laced with fentanyl, and on occasion fentanyl alone, with flagrant disregard for the potentially deadly consequences of the drugs to users,” stated United States Attorney Peace. “The defendant’s conviction and today’s sentence are the result of the relentless efforts by this Office and our law enforcement partners to prosecute traffickers dealing lethal drugs for profit and bring justice for the victims and families devastated by the opioid scourge.”
“Fentanyl is responsible for nearly 80% of all drug-related overdose deaths in New York,” stated DEA Special Agent-in-Charge Tarentino. “It is cases like this that highlight the dangers of synthetic drugs and the consequences associated with illicit drug use and drug trafficking. I commend the members of the New York Drug Enforcement Task Force and the U.S. Attorney’s Office Eastern District of New York for their relentless work in keeping the communities safe.”
“As this case demonstrates, anyone who peddles this deadly poison in our city will be arrested and prosecuted to the fullest extent of the law,” stated NYPD Commissioner Sewell. “The callous disregard for human life displayed by this defendant is indicative of the reckless and negligent depravity of dealing illegal drugs. These criminals prey on some of our community’s most vulnerable people, and the NYPD will never cease in our efforts to bring them to justice. I want to thank the U.S. Attorney for the Eastern District, the DEA, and all of our investigators for their outstanding work on this case.”
“Mr. Charles sentencing illustrates the work of a strong law enforcement partnership that has resulted in a dangerous individual being taken off the streets. Drugs such as heroin and fentanyl destroy families, communities and put lives at risk. This sentencing sends a clear message that we will not tolerate the illegal drug activity and the deadly consequences associated with it. We will remain vigilant in pursuing and prosecuting criminals who threaten the safety of our neighborhoods,” stated NYSP Superintendent Bruen.
Between July 2018 and April 2019, Charles sold at least 40 grams of fentanyl and heroin laced with fentanyl. The investigation revealed that on September 9, 2018, a 43-year-old individual (John Doe-1) died of a drug-related overdose at his residence on Staten Island. Drug packaging found near John Doe -1’s body was consistent with the packaging that Charles used for the narcotics he sold, and a search of John Doe-1’s phone indicated that he had purchased narcotics from Charles the night before his death. On April 23, 2019, a 29-year-old individual (John Doe -2) died of a drug-related overdose at his residence on Staten Island. A search of John Doe -2’s phone revealed text messages between Charles and John Doe -2. On the morning of John Doe-2’s death, he texted Charles, “Is it mix w fentonal…Just wanna know to be careful”. Shortly before John Doe -2’s body was discovered, Charles texted Victim-2: “U good”. Autopsies performed on both victims revealed traces of heroin and fentanyl in their bodies. Additionally, Charles sold pure fentanyl to a confidential source and an undercover NYPD officer in doses that could have been lethal if consumed.
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.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
The government’s case is being prosecuted by Department of Justice Trial Attorney Miriam L. Glaser Dauermann of the Criminal Division’s Fraud Section under the supervision of the U.S. Attorney’s Office for the Eastern District of New York and the Criminal Division’s Fraud Section.
The Defendant:
NALERTON CHARLES (also known as “Lite”)
Age: 38
Staten Island, New YorkE.D.N.Y. Docket No. 19-CR-293 (ILG)
Former Chief Executive Officer of Publicly Traded Company Pleads Guilty to Conspiracy to Commit Securities FraudRead the Press Release
Earlier today, in federal court in Central Islip, Christian Romandetti, Sr., the former Chief Executive Officer of First Choice Healthcare Solutions, Inc. (FCHS), a publicly traded company based in Melbourne, Florida pleaded guilty before United States District Judge Joanna Seybert to conspiracy to commit securities fraud. When sentenced, Romandetti faces up to 5 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.
“Through deceptive means, the defendant cheated his investors, many of whom were elderly,” stated United States Attorney Peace. “With today’s guilty plea, Christian Romandetti, Sr. is held responsible for orchestrating and profiting from a pump-and-dump scheme involving shares of his own healthcare services company.”
Mr. Peace also expressed his grateful appreciation to the United States Securities and Exchange Commission for their significant cooperation and assistance in the investigation.
As alleged in the indictment, between May 2013 and June 2016, the defendant and others engaged in a multi-million dollar scheme to defraud investors and potential investors in FCHS by artificially controlling the price and volume of traded shares in FCHS through, among other things:
- artificially generating price movements and trading volume in the shares, and
- material misrepresentations and omissions in their communications with victim investors about FCHS stock, relating to, among other things, the advisability of purchasing such stock.
To execute this scheme, the defendant and others fraudulently concealed their control of shares of FCHS stock that were held in brokerage accounts in the names of other individuals or entities.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorney Charles N. Rose is in charge of the prosecution.
The Defendant:
CHRISTIAN ROMANDETTI, SR.
Age: 61
Indiatlantic, FloridaE.D.N.Y. Docket No. 18-CR-614 (JS)
Brooklyn Man Charged with Murder and Sex Trafficking Eight WomenRead the Press Release
A 10-count indictment was unsealed today in federal court in Brooklyn charging Somorie Moses, also known as “Somorie Barfield,” “Sugar Bear,” “Bear” and “Daddy,” with the 2017 murder of one woman, Leondra Foster, and with sex trafficking eight women. This indictment is believed to be the first use of the federal statute criminalizing murder in the course of sex trafficking. Moses will be arraigned this afternoon before United States Magistrate Judge Robert M. Levy.
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 charges.
“Sex trafficking is a modern form of slavery that uses violence and fear to force vulnerable individuals to work for someone else’s profit, in this case resulting in the alleged brutal murder of one of the victims,” stated United States Attorney Peace. “This Office will continue to prioritize investigation and prosecution of these heinous crimes. I thank the victims for their bravery in coming forward to report the defendant’s crimes and hope that this prosecution will help bring them and Ms. Foster’s family closure.”
Mr. Peace also expressed his grateful appreciation to the FBI, the NYPD, and the Kings County District Attorney’s Office for their work and assistance in this investigation and prosecution.
“Words do not adequately convey the depravity of the long list of actions Moses allegedly took to torment and terrorize women so he could traffic them for money,” stated FBI Assistant Director-in-Charge Driscoll. “He's accused of storing a woman's head in his freezer after he killed her. Imagine how hard it is for his victims to come forward - but they have and should be commended for their bravery. They will help us bring Moses to justice for his alleged crimes, and will keep him from harming another human being.”
“The NYPD is committed to protecting the survivors of sex trafficking and holding fully accountable anyone who would seek to profit through the abuse and exploitation of another human being,” stated NYPD Commissioner Sewell. “The level of depravity allegedly shown in this case is truly beyond the pale. I thank and commend the U.S. Attorney’s Office for the Eastern District, and our partners at the FBI and the Kings County District Attorney’s Office, for their support in building this critical case.”
According to the indictment in this case and other court filings, since at least 2003, Moses allegedly forced women and girls, including minors, into prostitution for his benefit using violence, threats of violence, and psychological manipulation. After meeting his victims, Moses used false promises of love and marriage to initiate sexual relationships with them before demanding that they work as prostitutes and turn over the money they earned to him. Moses used brutal beatings, rape, torture, and threats to coerce his victims to work in prostitution in Brooklyn and Queens and to comply with his orders. Moses pressured many of his victims into getting his first name, “Somorie,” tattooed on their bodies.
As alleged, Moses used extreme violence to force his victims to work in prostitution for his benefit. For example, when one victim refused to engage in prostitution, Moses used a taser against her until she complied. On another occasion, Moses slashed a victim’s arms and back with a razor and beat her with a belt before pouring lemon juice on her wounds, leaving her permanently scarred. When another victim did not do as Moses ordered, he beat her with an extension cord and threatened to rub salt in her wounds. When another victim told Moses she did not want to work as a prostitute, he put a shotgun in her mouth and threatened to kill her and her child.
In the early morning hours of January 13, 2017, Moses allegedly murdered Leondra Foster, one of his many sex trafficking victims, by beating her until she died. The following morning, using a knife and a saw, Moses dismembered Foster’s body inside their shared apartment in Brooklyn, New York. Four days later, on the morning of January 17, 2017, Moses brought Foster’s torso and limbs to the Bronx for disposal at a sanitation site. Foster’s head, hands and feet — including a foot with the name “Somorie” tattooed on it — were subsequently recovered by law enforcement inside the deep freezer of Moses’s apartment.
The government’s investigation is ongoing. Anyone with information about crimes perpetrated by Somorie Moses is asked to contact the FBI at 1-800-CALL-FBI, and reference this case.
The charges in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty. If convicted of the murder charge, Moses faces life imprisonment, and is eligible for the death penalty.
The government’s case is being handled by the Office’s Civil Rights Section. Assistant United States Attorneys Jonathan Siegel and Tanya Hajjar are in charge of the prosecution.
The Defendant:
SOMORIE MOSES (also known as “Somorie Barfield,” “Sugar Bear,” “Bear” and “Daddy”)
Age: 45
Brooklyn, New York
E.D.N.Y. Docket No. 22-CR-232 (CBA)Panamanian Intermediaries Each Sentenced to 36 Months for International Bribery and Money Laundering SchemeRead the Press Release
Earlier today, at the federal courthouse in Brooklyn, Luis Enrique Martinelli Linares (Luis Martinelli Linares) and Ricardo Alberto Martinelli Linares (Ricardo Martinelli Linares) were each sentenced to 36 months’ imprisonment and a $250,000 fine for their roles in a massive bribery and money laundering scheme involving Odebrecht S.A. (Odebrecht), a Brazil-based global construction conglomerate. The proceedings were held before United States District Judge Raymond J. Dearie.
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 of the Federal Bureau of Investigation, New York Field Office (FBI), announced the sentences.
“The Martinelli brothers used American banks to commit their selfish, greedy fraud – and now it is the American legal system serving justice with today’s sentencing, especially for the people of Panama,” stated United States Attorney Peace. “Together, the Department of Justice, this Office and our law enforcement partners stand firm against international corruption and will use all tools at our disposal to root it out.”
“Ricardo and Luis Martinelli Linares directed millions of dollars in bribes through U.S. banks to their own Swiss accounts in order to help Odebrecht gain corrupt influence at the highest levels of the Panamanian government,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “Today’s sentences show that the Department of Justice remains committed to prosecuting individuals who enable and profit from laundering corrupt payments to foreign officials through the U.S. financial system, as well as those who attempt to spend the proceeds of corruption in the United States.”
“The defendants laundered millions of dollars in bribes through the U.S. financial system to benefit a close relative and maintain their luxury lifestyles,” said Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division. “Today’s sentencing shows that the FBI and our law enforcement partners are committed to bringing to justice anyone who enables the corruption of public officials for personal gain.”
The overarching Odebrecht scheme involved the payment of more than $700 million in bribes to government officials, public servants, political parties, and others in Panama and other countries around the world to obtain and retain business for the company. On December 21, 2016, Odebrecht pleaded guilty in the Eastern District of New York to a criminal information charging it with conspiracy to violate the anti-bribery provisions of the Foreign Corrupt Practices Act for its involvement in the bribery and money laundering scheme.
In December 2021, both defendants pleaded guilty to conspiracy to commit money laundering and admitted that they had agreed with others to establish offshore bank accounts in the names of shell companies to receive and disguise over $28 million in bribe proceeds from Odebrecht for the benefit of a close relative, a high-ranking public official in Panama. According to court documents, approximately $19 million of the bribes were transferred through U.S. banks. Luis Martinelli Linares also used some of the proceeds of the scheme to purchase a $1.7 million yacht and a $1.3 million condominium in the United States, and Ricardo Martinelli Linares spent hundreds of thousands of dollars in proceeds to pay personal expenses.
Luis Martinelli Linares and Ricardo Martinelli Linares were initially arrested at el Aeropuerto Internacional la Aurora in Guatemala on July 6, 2020, pursuant to a provisional arrest request from the United States, as they were attempting to depart Guatemala on a private plane. The defendants were charged on February 4, 2021, in an indictment in connection with this bribery and money laundering scheme. Both defendants were ultimately extradited from Guatemala.
The case is being prosecuted by Assistant United States Attorney Alixandra Smith of the Office's Business and Securities Fraud Section, Trial Attorney Michael Culhane Harper of the Criminal Division's Fraud Section, and Trial Attorneys Michael Redmann and Barbara Levy of the Criminal Division's Money Laundering and Asset Recovery Section. Assistant United States Attorneys Laura Mantell and Tanisha Payne of the Office's Asset Recovery Sectin are handling forefiture matters. The FBI's International Corruption Unit in New York is investigating this case.
The Defendants:
LUIS ENRIQUE MARTINELLI LINARES
Age: 40
Panama City, PanamaRICARDO ALBERTO MARTINELLI LINARES
Age: 43
Panama City, PanamaE.D.N.Y. Docket No. 21-CR-65 (RJD)
Panama Intermediaries Each Sentenced to 36 Months in Prison for International Bribery and Money Laundering SchemeRead the Press Release
Two brothers, each a dual-citizen of Panama and Italy, were each sentenced to 36 months in prison for laundering $28 million in a bribery and money laundering scheme involving Odebrecht S.A. (Odebrecht), a Brazil-based global construction conglomerate. The defendants were also ordered to forfeit more than $18.8 million, pay a $250,000 fine and serve two years’ supervised release.
Luis Enrique Martinelli Linares, 40, and Ricardo Enrique Martinelli Linares, 42, each pleaded guilty to conspiracy to commit money laundering and admitted to agreeing with others to establish offshore bank accounts in the names of shell companies to receive and disguise over $28 million in bribe proceeds from Odebrecht for the benefit of a close relative, a high-ranking public official in Panama. According to court documents, approximately $19 million of the bribes were transferred through U.S. banks. Luis Martinelli Linares also used some of the proceeds of the scheme to purchase a $1.7 million yacht and a $1.3 million condominium in the United States, and Ricardo Martinelli Linares spent hundreds of thousands of dollars in proceeds to pay personal expenses.
On Dec. 21, 2016, Odebrecht pleaded guilty in the Eastern District of New York to a criminal information charging it with conspiracy to violate the anti-bribery provisions of the Foreign Corrupt Practices Act (FCPA) for its involvement in the bribery and money laundering scheme. According to court documents, the scheme involved the payment of more than $700 million in bribes to government officials, public servants, political parties, and others in Panama and other countries around the world to obtain and retain business for the company.
The defendants were initially charged by criminal complaint on June 27, 2020. Pursuant to a provisional arrest request from the United States, they were arrested at el Aeropuerto Internacional la Aurora in Guatemala on July 6, 2020, as they were attempting to depart Guatemala on a private plane, and later held on extradition requests from the United States. Both defendants filed multiple challenges and appeals opposing the extradition request in Guatemalan courts before ultimately being extradited to the United States, Luis Martinelli Linares on Nov. 15, 2021, and Ricardo Martinelli Linares on Dec. 10, 2021.
On Feb. 4, 2021, Luis Martinelli Linares and Ricardo Martinelli Linares were charged with conspiracy and money laundering charges by an indictment filed in federal court in Brooklyn.
“Ricardo and Luis Martinelli Linares directed millions of dollars in bribes through U.S. banks to their own Swiss accounts in order to help Odebrecht gain corrupt influence at the highest levels of the Panamanian government,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “Today’s sentences show that the Department of Justice remains committed to prosecuting individuals who enable and profit from laundering corrupt payments to foreign officials through the U.S. financial system, as well as those who attempt to spend the proceeds of corruption in the United States.”
“The Martinelli brothers used American banks to commit their selfish, greedy fraud – and now it is the American legal system serving justice with today’s sentencing, especially for the people of Panama,” said U.S. Attorney Peace. “Together, the Department of Justice, this office and our law enforcement partners stand firm against international corruption and will use all tools at our disposal to root it out.”
“The defendants laundered millions of dollars in bribes through the U.S. financial system to benefit a close relative and maintain their luxury lifestyles,” said Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division. “Today’s sentencing shows that the FBI and our law enforcement partners are committed to bringing to justice anyone who enables the corruption of public officials for personal gain.”
The FBI’s International Corruption Unit in New York is investigating this case, with the support of FBI Legal Attaché Panama. The Justice Department’s Office of International Affairs provided significant assistance in securing their arrest and extradition from Guatemala.
Trial Attorney Michael Culhane Harper of the Criminal Division’s Fraud Section, Trial Attorneys Barbara Levy and Michael Redmann of the Criminal Division’s Money Laundering and Asset Recovery Section (MLARS), and Assistant U.S. Attorney Alixandra E. Smith of the U.S. Attorney’s Office for the Eastern District of New York are prosecuting the case. Assistant U.S. Attorney Laura Mantell of U.S. Attorney’s Office for the Eastern District of New York’s Civil Division is handling forfeiture matters.
Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
The Kleptocracy Asset Recovery Initiative in MLARS was formed to prosecute money launderers and forfeit the proceeds of foreign official corruption and, where appropriate, to use those recovered assets to benefit the people harmed by the corruption and abuse of office. 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].
One Defendant Sentenced to Prison for Coercion and Enticement of a Minor; Two Defendants Plead Guilty to Sex Trafficking Conspiracy and Sex Trafficking of a MinorRead the Press Release
Two Defendants Used Online Ads to Conspire to Cause and Repeatedly Caused a Long Island Minor to Engage in Prostitution
Earlier today, in federal court in Central Islip, Robert Gallimore, a resident of Sebring, Florida, was sentenced by United States District Judge Joanna Seybert to 144 months’ imprisonment for coercion and enticement of a minor to engage in sexual activity.
Also earlier today, in federal court in Central Islip, Terron Newsome, also known as “Loso,” and Fredjy Exavier pleaded guilty before United States Magistrate Judge James M. Wicks to conspiracy to commit sex trafficking of a minor and sex trafficking of minor (Jane Doe #1). Newsome also admitted during his plea hearing to attempting to engage in the sex trafficking of a 12-year-old victim (Jane Doe #2) in December 2018. When sentenced, each 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 sentence, Rodney K. Harrison, Commissioner, Suffolk County Police Department (SCPD) joined in announcing the guilty pleas.
“These defendants manipulated, abused and exploited children who they saw as objects to control rather than as young people to be cherished and protected,” stated United States Attorney Peace. “Along with our law enforcement partners, we are committed to protecting our children and ensuring that those who perpetrate sex crimes against them face serious consequences.”
“These individuals committed unthinkable acts against children, exploiting them for their own personal gain,” Suffolk County Police Commissioner Harrison said. “I hope today’s guilty pleas help the victims move forward from these tragedies and I extend my thanks to Eastern District of New York and our law enforcement partners for ensuring these criminals are answering for their heinous crimes.”
The Sentencing
As indicated in court filings, Gallimore was a Florida state corrections officer who, over the period of a week in 2018, caused a 16-year-old Long Island girl to repeatedly generate sexually explicit and masochistic child pornography of herself and to send it to him under the threat that images and videos would be disseminated throughout her school if she did not continue to comply. In addition to terrorizing the victim into producing child pornography at his direction, Gallimore also unsuccessfully sought to solicit sex from the minor victim.
The Guilty Pleas
As charged in the indictment and as stated at the plea hearing, in or about and between March 2014 and December 2018, Newsome and Exavier conspired to engage in the sex trafficking of Jane Doe #1 and used the internet to set up “dates,” i.e. sexual intercourse or other sex acts, with “Johns” for money at various motels on Long Island. During the conspiracy, the defendants knew that Jane Doe #1 was under the age of 18. Newsome also admitted that in December 2018, he attempted to cause Jane Doe #2 to engage in sex trafficking.
Both of the government’s cases are being handled by the Office’s Long Island Criminal Division. Assistant United States Attorney Charles N. Rose is in charge of the prosecution.
The Defendants:
ROBERT GALLIMORE
Age: 32
Sebring, FloridaE.D.N.Y. Docket No. 18-CR-363 (JS)
TERRON NEWSOME (also known as “Loso”)
Age: 25
Central Islip, New YorkFREDJY EXAVIER
Age: 25
Central Islip, New YorkE.D.N.Y. Docket No. 19-CR-70 (DRH)
Former School Official and Local Restauranteur Indicted in Kickback SchemeRead the Press Release
An indictment was unsealed today in federal court in Central Islip charging Sharon Gardner, the former Director of Food Services for the Hempstead Union Free School District (HUFSD), and Maria Caliendo, the owner of food service providers Smart Starts NY, Inc. (Smart Starts) and Prince Umberto’s restaurant in Franklin Square, with conspiracy to commit honest services wire fraud in connection with a kickback scheme involving HUFSD procurement contracts. The indictment also charges Caliendo with making false statements to a federal agent investigating the fraudulent scheme. The defendants are scheduled to be arraigned this afternoon before United States District Judge Joanna Seybert 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); Beth Dinkins, Special Agent-in-Charge United States Department of Agriculture, Inspector General's Office; Terry Harris, Special Agent in Charge, U.S. Department of Education Office of Inspector General’s Eastern Regional Office; Thomas Fattorusso, Special Agent-in-Charge, Internal Revenue Service-Criminal Investigation, New York; Anne T. Donnelly, Nassau County District Attorney; and Thomas P. DiNapoli, New York State Comptroller, announced the arrests and charges.
“As alleged, with little regard for the taxpaying public, the defendants secretly steered lucrative food service contracts to themselves and then illegally shared the profits,” stated United States Attorney Peace. “This Office will continue to vigorously investigate and prosecute those who attempt to corrupt our public institutions through illegal bribes and kickbacks, as well as the officials who enrich themselves at the expense of the public they serve.”
"As alleged, Ms. Gardner and Ms. Caliendo engaged in a scheme in which Ms. Gardner steered more than $1 million in sole-source school breakfast contracts to Ms. Caliendo's company, in spite of the fact more cost-effective options existed. In exchange, Ms. Caliendo illicitly paid more than $100,000 in kickbacks to Ms. Gardner, which she used to purchase a variety of personal luxuries. Today's action demonstrates the FBI's commitment to bringing to justice those who seek to illegally benefit from taxpayer-funded programs intended to serve the public," stated Assistant Director-in-Charge Driscoll.
“Instead of following the legitimate bidding process for a food services contract, the defendants allegedly used the Hempstead School District as their own piggy bank,” Nassau County District Attorney Donnelly said. “This prosecution sends a strong message to public officials that anyone using tax dollars to unjustly enrich themselves will be prosecuted to the fullest extent of the law.”
“There is no place for corruption in the United States, especially as it relates to programs set up to feed hungry children and provide assistance to the most vulnerable in our society,” stated Special Agent-in-Charge Beth Dinkins.
“It’s alleged this duo conspired together in this fraud scheme where Gardner procured millions of dollars in contracts for Caliendo’s business, choosing Caliendo’s company’s bid in exchange for high-value kickbacks,” said IRS-CI Special Agent in Charge Fattorusso. “While Gardner accepted the higher bid for her own personal gain, the taxpayers of the Hempstead Union Free School District were left holding the bill. IRS-CI continues to work with our law enforcement partners to ensure that those who choose to cheat the public to support their own extravagant lifestyle face the consequences of their criminal acts.”
“Stealing money meant to feed students in need is reprehensible,” said State Comptroller DiNapoli. “Due to my partnership with United States Attorney Peace, District Attorney Donnelly, the FBI and our federal partners, this former school employee and her co-conspirator will be held accountable for their alleged actions. I will continue to work with law enforcement across the state to root out public corruption and protect taxpayers.”
As alleged in the indictment, in her capacity as the Director of Food Services for HUFSD, Gardner helped secure lucrative contracts for Caliendo’s company, Smart Starts, to provide prepackaged breakfast meals for Hempstead public school students. For example, during the 2016-17 school year, Gardner persuaded HUFSD officials to treat Caliendo as a “sole source” vendor (a designation typically reserved for providers of unique or rare supplies for which sourcing is limited) of breakfast foods, thereby avoiding competitive bidding for the district’s business. Subsequently, in the 2017-18 school year, Gardner oversaw a supposedly competitive bidding scenario for the breakfast items, only to award a second procurement contract to Smart Starts despite the existence of more cost-effective bids. In total, pursuant to these procurement contracts, Caliendo’s company received more than $1.2 million from HUFSD.
In exchange, Caliendo kicked back a portion of the contract proceeds totaling more than $100,000 to Gardner through fraudulent payroll deposits and other payments. To conceal the illegal nature of the arrangement, those payments were deposited into a bank account that was created in the name of one of Gardner’s family members. Yet, the kicked back funds were spent by Gardner on international vacations, a leased vehicle and home furnishings, among other things. Approximately $13,000 in kicked back funds were also withdrawn by Gardner in cash from ATMs located near her home and workplace.
In voluntary interviews with investigators, Caliendo made materially false statements concerning the justification for the payments, falsely claiming that they represented repayment for a startup loan from Gardner’s family member, despite having received no capital contribution, work or labor from that individual.
If convicted, the defendants face up to 20 years’ imprisonment for the conspiracy to commit wire fraud charge. The charges in the indictment are merely allegations, and the defendants are presumed innocent unless and until proven guilty.
The government’s case is being prosecuted by the Office’s Long Island Criminal Division. Assistant United States Attorneys Anthony Bagnuola and Charles P. Kelly are in charge of the prosecution.
The Defendants:
SHARON GARDNER
Age: 56
Lindenhurst, New YorkMARIA CALIENDO
Age: 57
Elmont, New YorkE.D.N.Y. Docket No. 22-CR-229 (JS) (JMW)
美國公民和四名中國情報官員被控監視著名異見者、人權領袖和民主活動人士Read the Press Release
昨天，布魯克林聯邦法院公佈了一份起訴書，對一名美國公民和四名中國國家安全部官員提起共謀及與其他指控，涉及間諜活動和跨國鎮壓計畫。
根據法庭檔，王書軍，73 歲，紐約皇后區人；何峰，又名何老闆，廣東人；季潔，青島人；李明，又名唐老、小李，廣東人；青島的陸克慶（又名陸老闆）據稱參與了美國和國外的間諜活動和跨國鎮壓計畫。王先生于3月16日根據刑事起訴被捕，並將於晚些時候提審。何、季、李、陸仍逍遙法外(以上姓名均為音譯)。
“我們不會容忍中華人民共和國或任何獨裁政府向我國輸出鎮壓措施，”司法部國家安全司助理司法部長馬修·奧爾森 (Matthew G. Olsen) 說。 “這些指控表明，對凡是違反我們法律、試圖壓制美國境內不同聲音，並阻止我們居民行使其合法權利的人，司法部堅定不
移，致力於追究其責任。”
紐約東區美國檢察官布倫·皮斯 (Breon Peace) 表示：“據指控，王在自己的社區中充當秘密情報人員，監視並向他的同案被告（中國政府國家安全部成員）報告有關著名親民主活動人士和組織的敏感資訊。” “今天的起訴書揭露並擾亂了中華人民共和國的一項行動，該行動威脅居住在美國的中國公民因為他們的民主信仰和言論的安全和自由。我們的辦公室和執法合作夥伴將保持警惕，阻止針對我們公民和居民的外國間諜活動。”
“如果有人懷疑中國政府對箝制批評者有多認真，瞭解本案後即可消除任何懷疑，”聯邦調查局國家安全部門代理執行助理主任小艾倫·科勒 (Alan E. Kohler Jr.) 表示。 “中國政府的咄咄逼人的策略曾經僅限於其境內。現在，中華人民共和國正在針對美國和世界各地的人民。聯邦調查局及其合作夥伴繼續致力於打擊跨國鎮壓。”
根據法庭檔，王是一位著名的學者和作家，他幫助在皇后區創立了一個反對中國現行共產主義政權的親民主組織。然而，據指控，至少自 2011 年以來，王一直利用其在華人僑界和異見者群體中的地位和身份，代表國家安全部和中國，秘密收集有關著名活動人士和人權領袖的資訊。正如起訴書所稱，何、季、李和陸是王的操縱者，指示王針對中國認為具有顛覆性的特定個人和團體，例如香港親民主活動人士、台獨宣導者、維吾爾族和藏族活動人士，並獲取有關國家安全部認為重要的特定主題和事項的資訊。
正如起訴書中所指控，王通過使用加密的消息傳遞應用程式和電子郵件，並在中國舉行的面對面會議上，向國家安全局--包括何、季、李和陸--傳達和提供資訊。王經常將他收集的資訊記錄在電子郵件“日記”中，供國家安全部查閱。此類“日記”包括王與著名異見者的私人談話，及民主活動人士和人權組織活動的細節。王被捕後，在對其住所進行的搜查中，發現了王寫給何、季、李、陸以及其他國安部官員的大約 163 篇“日記”。
例如，在 2016 年 11 月 22 日左右的一系列通訊中，季指示王在即將舉行的一場親民主活動中，與特定與會者互動，並“完成“老闆”（指的是陸）分配的任務。季指出，相關與會者與“藏族人、維吾爾族人和蒙古族人”有過接觸，並祝王好運，取得“好成績。”在 2016 年 11 月 16 日左右的另一次交流中，王告訴李，他“剛剛結束與一位著名人權活動人士的交談，”並指出他提出了“必要的問題”並得到了“坦誠”的答復。李回應“太好了，”並用豎起大拇指的表情符號，指示王將其寫在“日記”中。王向國安部舉報的至少一名香港民主活動家和異見者（在起訴書中被稱為“香港異見者一號”）隨後被中國逮捕。
除了這一行為之外，起訴書還指控王向國家安全部轉移並擁有屬於中國異見者的電話號碼和聯繫資訊，並向聯邦執法部門做出重大虛假陳述，虛假地否認他與中國官員或國家安全部有聯繫。
紐約東區美國助理檢察官阿蒂·麥康奈爾 (Artie McConnell) 正在國家安全部反情報和出口管制司的審判律師斯科特·A·克拉菲 (Scott A. Claffee) 的寶貴協助下起訴此案。
起訴書只是一項指控，所有被告均被假定無罪，直到在法庭上排除合理懷疑而被證明有罪。
美国公民和四名中国情报官员被控监视著名持不同政见者、人权领袖和民主活动人士Read the Press Release
昨天，布鲁克林联邦法院公布了一份起诉书，对一名美国公民和四名中国国家安全部官员提起共谋及与其他指控，涉及间谍活动和跨国镇压计划。
根据法庭文件，王书军，73 岁，纽约皇后区人；何峰，又名何老板，广东人；季洁，青岛人；李明，又名唐老、小李，广东人；青岛的陆克庆（又名陆老板）据称参与了美国和国外的间谍活动和跨国镇压计划。王先生于3月16日根据刑事起诉被捕，并将于晚些时候提审。何、季、李、陆仍逍遥法外(以上姓名均为音译)。
“我们不会容忍中华人民共和国或任何独裁政府向我国输出镇压措施，”司法部国家安全司助理司法部长马修·奥尔森 (Matthew G. Olsen) 说。 “这些指控表明，对凡是违反我们法律、试图压制美国境内不同声音，并阻止我们居民行使其合法权利的人，司法部坚定不
移，致力于追究其责任。”
纽约东区美国检察官布伦·皮斯 (Breon Peace) 表示：“据指控，王在自己的社区中充当秘密情报人员，监视并向他的同案被告（中国政府国家安全部成员）报告有关著名亲民主活动人士和组织的敏感信息。” “今天的起诉书揭露并扰乱了中华人民共和国的一项行动，该行动威胁居住在美国的中国公民因为他们的民主信仰和言论的安全和自由。我们的办公室和执法合作伙伴将保持警惕，阻止针对我们公民和居民的外国间谍活动。”
“如果有人怀疑中国政府对箝制批评者有多认真，了解本案后即可消除任何怀疑，”联邦调查局国家安全部门代理执行助理主任小艾伦·科勒 (Alan E. Kohler Jr.) 表示。 “中国政府的咄咄逼人的策略曾经仅限于其境内。现在，中华人民共和国正在针对美国和世界各地的人民。联邦调查局及其合作伙伴继续致力于打击跨国镇压。”
根据法庭文件，王是一位著名的学者和作家，他帮助在皇后区创立了一个反对中国现行共产主义政权的亲民主组织。然而，据指控，至少自 2011 年以来，王一直利用其在华人侨界和持不同政见者群体中的地位和身份，代表国家安全部和中国，秘密收集有关著名活动人士和人权领袖的信息。正如起诉书所称，何、季、李和陆是王的操纵者，指示王针对中国认为具有颠覆性的特定个人和团体，例如香港亲民主活动人士、台独倡导者、维吾尔族和藏族活动人士，并获取有关国家安全部认为重要的特定主题和事项的信息。
正如起诉书中所指控，王通过使用加密的消息传递应用程序和电子邮件，并在中国举行的面对面会议上，向国家安全局--包括何、季、李和陆--传达和提供信息。王经常将他收集的信息记录在电子邮件“日记”中，供国家安全部查阅。此类“日记”包括王与著名持不同政见者的私人谈话，及民主活动人士和人权组织活动的细节。王被捕后，在对其住所进行的搜查中，发现了王写给何、季、李、陆以及其他国安部官员的大约 163 篇“日记”。
例如，在 2016 年 11 月 22 日左右的一系列通讯中，季指示王在即将举行的一场亲民主活动中，与特定与会者互动，并“完成“老板”（指的是陆）分配的任务。季指出，相关与会者与“藏族人、维吾尔族人和蒙古族人”有过接触，并祝王好运，取得“好成绩。”在 2016 年 11 月 16 日左右的另一次交流中，王告诉李，他“刚刚结束与一位著名人权活动人士的交谈，”并指出他提出了“必要的问题”并得到了“坦诚”的答复。李回应“太好了，”并用竖起大拇指的表情符号，指示王将其写在“日记”中。王向国安部举报的至少一名香港民主活动家和持不同政见者（在起诉书中被称为“香港持不同政见者一号”）随后被中国逮捕。
除了这一行为之外，起诉书还指控王向国家安全部转移并拥有属于中国持不同政见者的电话号码和联系信息，并向联邦执法部门做出重大虚假陈述，虚假地否认他与中国官员或国家安全部有联系。
纽约东区美国助理检察官阿蒂·麦康奈尔 (Artie McConnell) 正在国家安全部反情报和出口管制司的审判律师斯科特·A·克拉菲 (Scott A. Claffee) 的宝贵协助下起诉此案。
起诉书只是一项指控，所有被告均被假定无罪，直到在法庭上排除合理怀疑而被证明有罪。
一名美国公民和四名中国情报官员 被控对著名的民运人士、持不同政见者和人权领袖进行间谍活动Read the Press Release
在昨天呈交到布鲁克林联邦法院的一份起诉书中，美国公民、皇后区居民王书君和中国国家安全部（国安部）的四名官员被指控犯有与间谍和跨国镇压有关的阴谋和其他罪行. 国安部的四名官员分别是贺锋，又称“贺老板”, 纪杰，李明，又称“唐长老”和“小李子”，以及吕可清，又称“吕老板”. 王书君此前于2022年3月16日因刑事指控被捕，稍后将被传讯。贺、纪、李、吕仍然在逃.
美国纽约东区检察官布雷昂皮尔斯, 司法部国家安全司助理部长马修 G.奥尔森, 以及联邦调查局纽约分局助理局长迈克尔.德里斯科尔宣布了这些指控.
“正如指控所述，王书君在自己社区充当地下情报人员，监视著名民运人士和组织，并将敏感信息报告给他的同案被告：中国国家安全部的成员”，美国检察官皮尔斯表示. “在美的中国公民支持民主信仰和言论，导致中国政府威胁他们的人身安全和自由. 今天的起诉书揭露并扰乱了这种行为. 我们办公室和我们的执法伙伴将保持警惕，挫败针对我国公民和居民的外国间谍活动”.
“我们不会容忍中国或任何权威政府向我国公民施压，”助理司法部长奥尔森说. 这些指控表明，司法部将坚定不移地把所有试图压制美国境内的不同政见，阻止我们的居民行使其合法权利的违法者绳之以法”.
助理局长德里斯科尔指出，我们指控，王为中国工作.他参加了一个民运组织，意图监视那些成员.他把居住在美国的持不同政见者作为目标，危及他们的生命与安全. 中国政府一次又一次地证明，它愿意无视我们的法律来追捕那些公开反对该政权的人. 我们正在与我们的执法伙伴积极合作，以阻止这些行为. 我们希望那些担心自己安全的人能够与我们联系”.
王是一位知名学者和作家. 他在皇后区帮助建立了一个反对中国现行共产党政权的民运组织. 然而，正如指控所述，至少自2011年以来，王利用自己在中国侨民和持不同政见社团的身份和地位，为国安部和中国政府秘密收集有关著名活动人士和人权领袖的信息. 作为王的联络人，贺、纪、李、吕指使王把中国认为有颠覆性的个人和团体作为目标，如香港民运人士、台独倡导者， 支持维吾尔和西藏的人士等，并获取对国安部至关重要的特定主题和事件的信息.
如起诉书所述，王通过加密通讯应用程序和电子邮件，以及在中国会面等方式，与包括贺、纪、李、吕在内的国安部沟通并提供信息. 王经常将所收集的信息记录到电子邮件“日记”，供国安部查阅. 这些“日记”包括王与知名异议人士的私人谈话以及民运人士和人权组织的活动细节. 王被捕后，从他家中搜查发现， 王曾给贺、纪、李、吕以及其他国安部官员写了大约163篇“日记”.
比如，在2016年11月22日前后的一系列沟通中，纪指示王在即将到来的民运活动中与某位特定与会者见面，以“完成老板（指吕）所指派的任务”. 纪说，他们感兴趣的与会者和“藏族人、维吾尔族人、蒙古族人”有联系，希望王能有“好的成绩”. 在2016年11月16日左右的另一次沟通中，王告诉李，他刚刚结束与一位知名人权活动人士“交谈”，他问了“必要的问题”并得到了“坦诚”的回答. 李回复“很好”，加以竖起拇指的表情符号，指示王记录到“日记”里. 在王向国安部报告的人员里，至少有一名香港民运人士和持不同政见者(在起诉书中称为“香港持不同政见者1”)随后被中国政府逮捕.
除上述行为外，起诉书还指控王持有并向国安部转交中国持不同政见者人士的电话号码和联系方式，并向联邦执法部门严重撒慌，抵赖与中国官员或国安部有联系.
起诉书中的罪名仅仅是指控，除非被告证明有罪，否则假定无罪.
政府的案件由纽约东区检察官办公室的国家安全和网络犯罪科办理。美国助理检察官阿迪麦康奈负责起诉，国家安全处反情报和出口管制科的出庭律师斯科特A.克拉菲协助。
被告：
王书君
年龄：73
纽约皇后区贺锋（又称“贺老板”）
年龄：49
广东，中国纪杰
年龄：50
青岛，中国李明（又称“唐长老”和“小李子”）
年龄：40
广东，中国吕可清，又称（“吕老板”）
年龄：61
青岛，中国E.D.N.Y. Docket No. 22-CR-00230(SJ)(JRC)
一名美国公民和四名中国情报官员 被控对著名的民运人士、持不同政见者和人权领袖进行间谍活动Read the Press Release
在昨天呈交到布鲁克林联邦法院的一份起诉书中，美国公民、皇后区居民王书君和中国国家安全部（国安部）的四名官员被指控犯有与间谍和跨国镇压有关的阴谋和其他罪行. 国安部的四名官员分别是贺锋，又称“贺老板”, 纪杰，李明，又称“唐长老”和“小李子”，以及吕可清，又称“吕老板”. 王书君此前于2022年3月16日因刑事指控被捕，稍后将被传讯。贺、纪、李、吕仍然在逃.
美国纽约东区检察官布雷昂皮尔斯, 司法部国家安全司助理部长马修 G.奥尔森, 以及联邦调查局纽约分局助理局长迈克尔.德里斯科尔宣布了这些指控.
“正如指控所述，王书君在自己社区充当地下情报人员，监视著名民运人士和组织，并将敏感信息报告给他的同案被告：中国国家安全部的成员”，美国检察官皮尔斯表示. “在美的中国公民支持民主信仰和言论，导致中国政府威胁他们的人身安全和自由. 今天的起诉书揭露并扰乱了这种行为. 我们办公室和我们的执法伙伴将保持警惕，挫败针对我国公民和居民的外国间谍活动”.
“我们不会容忍中国或任何权威政府向我国公民施压，”助理司法部长奥尔森说. 这些指控表明，司法部将坚定不移地把所有试图压制美国境内的不同政见，阻止我们的居民行使其合法权利的违法者绳之以法”.
助理局长德里斯科尔指出，我们指控，王为中国工作.他参加了一个民运组织，意图监视那些成员.他把居住在美国的持不同政见者作为目标，危及他们的生命与安全. 中国政府一次又一次地证明，它愿意无视我们的法律来追捕那些公开反对该政权的人. 我们正在与我们的执法伙伴积极合作，以阻止这些行为. 我们希望那些担心自己安全的人能够与我们联系”.
王是一位知名学者和作家. 他在皇后区帮助建立了一个反对中国现行共产党政权的民运组织. 然而，正如指控所述，至少自2011年以来，王利用自己在中国侨民和持不同政见社团的身份和地位，为国安部和中国政府秘密收集有关著名活动人士和人权领袖的信息. 作为王的联络人，贺、纪、李、吕指使王把中国认为有颠覆性的个人和团体作为目标，如香港民运人士、台独倡导者， 支持维吾尔和西藏的人士等，并获取对国安部至关重要的特定主题和事件的信息.
如起诉书所述，王通过加密通讯应用程序和电子邮件，以及在中国会面等方式，与包括贺、纪、李、吕在内的国安部沟通并提供信息. 王经常将所收集的信息记录到电子邮件“日记”，供国安部查阅. 这些“日记”包括王与知名异议人士的私人谈话以及民运人士和人权组织的活动细节. 王被捕后，从他家中搜查发现， 王曾给贺、纪、李、吕以及其他国安部官员写了大约163篇“日记”.
比如，在2016年11月22日前后的一系列沟通中，纪指示王在即将到来的民运活动中与某位特定与会者见面，以“完成老板（指吕）所指派的任务”. 纪说，他们感兴趣的与会者和“藏族人、维吾尔族人、蒙古族人”有联系，希望王能有“好的成绩”. 在2016年11月16日左右的另一次沟通中，王告诉李，他刚刚结束与一位知名人权活动人士“交谈”，他问了“必要的问题”并得到了“坦诚”的回答. 李回复“很好”，加以竖起拇指的表情符号，指示王记录到“日记”里. 在王向国安部报告的人员里，至少有一名香港民运人士和持不同政见者(在起诉书中称为“香港持不同政见者1”)随后被中国政府逮捕.
除上述行为外，起诉书还指控王持有并向国安部转交中国持不同政见者人士的电话号码和联系方式，并向联邦执法部门严重撒慌，抵赖与中国官员或国安部有联系.
起诉书中的罪名仅仅是指控，除非被告证明有罪，否则假定无罪.
政府的案件由纽约东区检察官办公室的国家安全和网络犯罪科办理。美国助理检察官阿迪麦康奈负责起诉，国家安全处反情报和出口管制科的出庭律师斯科特A.克拉菲协助。
被告：
王书君
年龄：73
纽约皇后区贺锋（又称“贺老板”）
年龄：49
广东，中国纪杰
年龄：50
青岛，中国李明（又称“唐长老”和“小李子”）
年龄：40
广东，中国吕可清，又称（“吕老板”）
年龄：61
青岛，中国E.D.N.Y. Docket No. 22-CR-00230(SJ)(JRC)
United States Recovers over $15 Million from Swiss Bank Accounts as Proceeds of Global Digital Advertising Fraud SchemeRead the Press Release
Breon Peace, United States Attorney for the Eastern District of New York, announced today that $15,111,453.84 in illicit proceeds derived from an international digital fraud scheme has been transferred by Switzerland to the United States government pursuant to a Final Order of Forfeiture entered by United States District Judge Eric R. Komitee in the matter of United States v. Sergey Ovsyannikov, et al.
“This forfeiture is the largest international cybercrime recovery in the history of the Eastern District of New York and sends a powerful message to those involved in cyber fraud that there are no boundaries to prosecuting these bad actors and locating their ill-gotten assets wherever they are in the world,” stated United States Attorney Peace. “This Office will continue working with our law enforcement partners to take the economic gain out of crime through all available resources, including asset forfeiture, and protect the integrity of our marketplace.”
Mr. Peace thanked the Federal Bureau of Investigation, New York Field Office, and the New York City Police Department for their outstanding investigative work, the Swiss Federal Office of Justice, and the Justice Department’s Office of International Affairs for their invaluable assistance in this matter.
The Criminal Scheme
The internet is, in large part, freely available to users worldwide because it runs on digital advertising: website owners display advertisements on their sites and are compensated for doing so by intermediaries representing businesses seeking to advertise their goods and services to real human customers. In general, digital advertising revenue is based on how many users click or view the ads on those websites. The defendants in this case represented to others that they ran legitimate companies that delivered advertisements to real human internet users accessing real internet webpages. In fact, the defendants faked both the users and the webpages; they programmed computers they controlled to load advertisements on fabricated webpages, via an automated program, in order to fraudulently obtain digital advertising revenue.Between December 2015 and October 2018, Sergey Ovsyannikov and Yevgeniy Timchenko, citizens of the Republic of Kazakhstan, and Aleksandr Isaev, a citizen of the Russian Federation, carried out a digital advertising fraud scheme known as “3ve.2 Template A” or “Eve.” The defendants used a global “botnet”-a network of malware-infected computers operated without the true owner’s knowledge or consent-to perpetrate digital advertising fraud. The defendants developed an intricate infrastructure of command-and-control servers to direct and monitor the infected computers and check whether a particular infected computer had been flagged by cybersecurity companies as associated with fraud. By using this infrastructure, the defendants accessed more than 1.7 million infected computers belonging to individuals and businesses in the United States and elsewhere, including more than 1,500 at residences and businesses in the Eastern District of New York—and used hidden browsers on those infected computers to download fabricated webpages and load ads onto those fabricated webpages. As a result of this scheme, the defendants falsified billions of ad views and spoofed more than 86,000 domains associated with online publishers, causing businesses to pay more than $29 million for ads that were never actually viewed by real human internet users and diverting that money away from the real online publishers for whom it was intended. The $15.1 million recovered from financial accounts in Switzerland were the proceeds of this digital advertising fraud scheme.
Ovsyannikov was arrested in October 2018 in Malaysia and extradited to the United States. Timchenko was arrested in November 2018 in Estonia and extradited to the United States. Both pleaded guilty and have been sentenced. Isaev remains at large.
Following the arrest of Ovsyannikov by Malaysian authorities, U.S. law enforcement authorities, in conjunction with various private sector companies, began the process of dismantling the criminal cyber infrastructure utilized in the botnet-based scheme, which involved computers infected with malicious software known in the cybersecurity community as “Kovter.” The FBI executed seizure warrants to sinkhole 23 internet domains used to further the charged botnet-based scheme or otherwise used to further the Kovter botnet. The FBI also executed search warrants at 11 different U.S. server providers for 89 servers related to the charged botnet-based scheme or Kovter.
Forfeiture matters related to the sentencings in this case were handled by Assistant United States Attorney Brendan G. King and former Assistant United States Attorney Karin K. Orenstein of the Office’s Asset Recovery Section. Assistant United States Attorneys Saritha Komatireddy, Artie McConnell, and Alexander F. Mindlin are in charge of the criminal prosecution.
U.S. Citizen and Four Chinese Intelligence Officers Charged with Spying on Prominent Pro-Democracy Activists, Dissidents, and Human Rights LeadersRead the Press Release
An indictment was returned yesterday in federal court in Brooklyn charging Shujun Wang, a U.S. citizen and Queens resident, and four officials from China’s Ministry of State Security (MSS), with conspiracy and other charges related to an espionage and transnational repression scheme. The four MSS officers are Feng He, also known as “Boss He,” Jie Ji, Ming Li, also known as “Elder Tang” and “Little Li,” and Keqing Lu, also known as “Boss Lu.” Wang was previously arrested on March 16, 2022, pursuant to a criminal complaint, and he will be arraigned at a later date. He, Ji, Li, and Lu remain at large.
Breon Peace, United States Attorney for the Eastern District of New York, Matthew G. Olsen, Assistant Attorney General of the Justice Department’s National Security Division, and Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the charges.
“As alleged, Wang acted as a covert intelligence asset in his own community, spying on and reporting sensitive information on prominent pro-democracy activists and organizations to his co-defendants: members of the Chinese government’s Ministry of State Security,” stated United States Attorney Peace. “Today’s indictment exposes and disrupts an operation by the PRC that threatens the safety and freedom of Chinese nationals residing in the United States on account of their pro-democracy beliefs and speech. Our Office and our law enforcement partners will remain vigilant to thwart foreign espionage activities aimed at our citizens and residents.”
“We will not tolerate efforts by the PRC or any authoritarian government to export repressive measures to our country,” stated Assistant Attorney General Olsen. “These charges demonstrate the Justice Department’s unwavering commitment to hold accountable all those who violate our laws in seeking to suppress dissenting voices within the United States and to prevent our residents from exercising their lawful rights.”
“Working for the People's Republic of China, we allege Wang participated in a pro-democracy organization with the insidious intent to spy on those who joined. He targeted dissidents living in the United States, putting their lives at risk. The Chinese government has proven time and again it is willing to overlook our laws to hunt down those who speak out against the regime. We are working aggressively with our law enforcement partners to thwart these actions, and we hope those who fear for their safety will reach out to us," stated Assistant Director-in-Charge Driscoll.
Wang is a well-known academic and author who helped start a pro-democracy organization in Queens that opposes the current communist regime in China. However, as alleged, since at least 2011, Wang has used his position and status within the Chinese diaspora and dissident communities to covertly collect information about prominent activists and human rights leaders on behalf of the MSS and PRC. He, Ji, Li, and Lu acted as Wang’s handlers, directing Wang to target specific individuals and groups that the PRC considers subversive, such as Hong Kong pro-democracy activists, advocates for Taiwanese independence, and Uyghur and Tibetan activists, and obtain information on particular topics and matters of importance to the MSS.
As alleged in the indictment, Wang communicated and provided information to the MSS, including to He, Ji, Li, and Lu, by using encrypted messaging applications and emails, as well as during face-to-face meetings in the PRC. Wang often memorialized the information he collected in email “diaries” to be accessed by the MSS. These “diaries” included details about Wang’s private conversations with prominent dissidents, as well as the activities of pro-democracy activists and human rights organizations. A search of Wang’s residence incident to his arrest revealed approximately 163 “diary” entries Wang wrote to He, Ji, Li, and Lu and other MSS officials.
For example, in one series of communications on or about November 22, 2016, Ji instructed Wang to interface with a particular attendee at an upcoming pro-democracy event and to “accomplish the task” assigned by the “Boss,” referring to Lu. Ji noted that the attendee of interest had contacts with “Tibetans, Uyghurs and Mongolians” and wished Wang good luck at getting “good results.” In another exchange on or about November 16, 2016, Wang informed Li that he “just finished chatting” with a prominent human rights activist, noting that he asked the “necessary questions” and received “candid” answers. Li responded “great” and with a thumbs-up emoji, instructing Wang to write it in a “diary.” At least one Hong Kong democracy activist and dissident that Wang reported on to the MSS, identified as “Hong Kong Dissident #1” in the indictment, was subsequently arrested by the PRC.
In addition to this conduct, the indictment alleges that Wang transferred to the MSS and possessed telephone numbers and contact information belonging to Chinese dissidents, as well as made materially false statements to federal law enforcement, falsely denying that he had contacts with PRC officials or the MSS.
The charges in the indictment are allegations, and the defendants are presumed innocent unless and until proven guilty.
The government’s case is being handled by the Office’s National Security and Cybercrime Section. Assistant United States Attorney Artie McConnell is in charge of the prosecution, with assistance from Trial Attorney Scott A. Claffee of the National Security Division’s Counterintelligence and Export Control Section.
The Defendants:
WANG SHUJUN
Age: 73
Queens, New YorkFENG HE (also known as “Boss He”)
Age: 49
Guangdong, PRCJIE JI
Age: 50
Qingdao, PRCMING LI (also known as “Elder Tang” and “Little Li”)
Age: 40
Guangdong, PRCKEQING LU (also known as “Boss Lu”)
Age: 61
Qingdao, PRCE.D.N.Y. Docket No. 22-CR-00230 (SJ) (JRC)
U.S. Citizen and Four Chinese Intelligence Officers Charged with Spying on Prominent Dissidents, Human Rights Leaders and Pro-Democracy ActivistsRead the Press Release
A U.S. citizen and four officials from China’s Ministry of State Security (MSS) were charged in an indictment, unsealed in federal court in Brooklyn yesterday, with conspiracy and other charges related to an espionage and transnational repression scheme.
According to court documents, Wang Shujun, 73, of Queens, New York; Feng He, aka Boss He, of Guangdong; Jie Ji, of Qingdao; Ming Li, aka Elder Tang and Little Li, of Guangdong; and Keqing Lu aka Boss Lu, of Qingdao, allegedly participated in an espionage and transnational repression scheme in the United States and abroad. Wang was arrested on March 16, pursuant to a criminal complaint, and will be arraigned at a later date. He, Ji, Li and Lu remain at large.
“We will not tolerate efforts by the PRC or any authoritarian government to export repressive measures to our country,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “These charges demonstrate the Justice Department’s unwavering commitment to hold accountable all those who violate our laws in seeking to suppress dissenting voices within the United States and to prevent our residents from exercising their lawful rights.”
“As alleged, Wang acted as a covert intelligence asset in his own community, spying on and reporting sensitive information on prominent pro-democracy activists and organizations to his co-defendants, who are members of the Chinese government’s Ministry of State Security,” said U.S. Attorney Breon Peace for the Eastern District of New York. “Today’s indictment exposes and disrupts an operation by the PRC that threatens the safety and freedom of Chinese nationals residing in the United States on account of their pro-democracy beliefs and speech. Our office and our law enforcement partners will remain vigilant to thwart foreign espionage activities aimed at our citizens and residents.”
“If anyone doubts how serious the Chinese government is about silencing its critics, this case should eliminate any uncertainty,” said Acting Executive Assistant Director Alan E. Kohler Jr. of the FBI’s National Security Branch. “The Chinese government’s aggressive tactics were once confined to its borders. Now, the PRC is targeting people in the United States and around the world. The FBI and its partners remain committed to combatting transnational repression.”
According to court documents, Wang is a well-known academic and author who helped start a pro-democracy organization in Queens that opposes the current communist regime in China. However, as alleged, since at least 2011, Wang has used his position and status within the Chinese diaspora and dissident communities to covertly collect information about prominent activists and human rights leaders on behalf of the MSS and PRC. As alleged in the indictment, He, Ji, Li and Lu acted as Wang’s handlers, directing Wang to target specific individuals and groups that the PRC considers subversive, such as Hong Kong pro-democracy activists, advocates for Taiwanese independence, and Uyghur and Tibetan activists, and obtain information on particular topics and matters of importance to the MSS.
As alleged in the indictment, Wang communicated and provided information to the MSS, including to He, Ji, Li and Lu, by using encrypted messaging applications and emails, as well as during face-to-face meetings in the PRC. Wang would often memorialize the information he collected in email “diaries” to be accessed by the MSS. These “diaries” included details about Wang’s private conversations with prominent dissidents, as well as the activities of pro-democracy activists and human rights organizations. A search of Wang’s residence incident to his arrest revealed approximately 163 “diary” entries Wang wrote to He, Ji, Li and Lu and other MSS officials.
For example, in one series of communications on or about Nov. 22, 2016, Ji instructed Wang to interface with a particular attendee at an upcoming pro-democracy event and to “accomplish the task” assigned by the “Boss,” referring to Lu. Ji noted that the attendee of interest had contacts with “Tibetans, Uyghurs and Mongolians” and wished Wang luck at getting “good results.” In another exchange on or about Nov. 16, 2016, Wang informed Li that he “just finished chatting” with a prominent human rights activist, noting that he asked the “necessary questions” and received “candid” answers. Li responded “great” and with a thumbs-up emoji, instructing Wang to write it in a “diary.” At least one Hong Kong democracy activist and dissident that Wang reported on to the MSS, identified as “Hong Kong Dissident #1” in the indictment, was subsequently arrested by the PRC.
In addition to this conduct, the indictment alleges that Wang transferred and possessed telephone numbers and contact information belonging to Chinese dissidents to the MSS, as well as making materially false statements to federal law enforcement, falsely denying that he had contacts with PRC officials or the MSS.
Assistant U.S. Attorney Artie McConnell of the Eastern District of New York is prosecuting the case with valuable assistance from Trial Attorney Scott A. Claffee of the National Security Division’s Counterintelligence and Export Control Section.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Staten Island Felon Sentenced to Prison for Possessing Illegal FirearmRead the Press Release
Earlier today, in federal court in Brooklyn, Brian Maiorana was sentenced by United States District Judge Frederic Block to 36 months in prison for being a convicted felon in possession of a firearm. Maiorana pleaded guilty to the charge in April 2021.
Breon Peace, United States Attorney for the Eastern District of New York, and Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the sentence.
“This sentencing demonstrates that individuals, like the defendant, who espouse violent views on social media concerning the ‘extermination’ and ‘assassination’ with ‘pipebombs’ and ‘firearms’ of those who don’t share their hateful, bigoted views, and who illegally possess guns and ammunition will be brought to justice,” stated United States Attorney Peace. “Our nation is facing a fatal epidemic of racism and hatred, and this Office and our law enforcement partners are working tirelessly to remove the illegal guns that turn these social media trolls into dangerous criminals, with the capacity to do irreparable harm to our communities. This Office and our law enforcement partners are so grateful that we apprehended the defendant before he turned his violent social media rants into fatal actions, and that we are not once again grieving a mass shooting.”
Beginning in September 2020, Maiorana used a social media platform to post multiple threats to kill protestors, politicians and law enforcement officers and to encourage others to do the same. For example, on October 19, 2020, Maiorana posted that “[i]ts come to the point where pipe bombs need to be thrown into these mobs of potentially non violent violent protesters.” On or about November 5, 2020, Maiorana posted, “The carnage needs to come in the form of extermination of anyone that claims to be democrat…as well as their family members.” On November 8, 2020, following the news media’s projection of the result of the 2020 Presidential Election, Maiorana posted that “The Turner Diaries must come to life. We blow up the FBI building for real.” The investigation culminated in the execution of a court-ordered search warrant of the defendant’s Staten Island residence where members of the FBI’s Joint Terrorism Task Force seized a semiautomatic .45 caliber Glock handgun, two magazines loaded with .45 caliber ammunition, .22 caliber ammunition, and “ghost gun” parts for a .22 caliber firearm. A taser, a crossbow, an expandable baton, a skull balaclava, and a copy of the “Anti-Government Movement Guidebook” were also recovered. Maiorana has a previous felony conviction from Pennsylvania for statutory sexual assault, stemming from a sexual relationship he had with a 13-year old that began when the defendant was 38.
The government’s case is being handled by the Office’s National Security and Cybercrime Section. Assistant United States Attorneys Artie McConnell and Jonathan E. Algor are in charge of the prosecution.
The Defendant:
BRIAN MAIORANA
Age: 55
Staten Island, New YorkE.D.N.Y. Docket No. 20-CR-519 (FB)