Eastern District of New York
Press releases recorded for this federal judicial district.
MS-13 Gang Member Pleads Guilty to Three Murders on Long IslandRead the Press Release
Earlier today, in federal court in Central Islip, Jhonny Contreras, a member of the Brentwood Locos Salvatruchas clique of La Mara Salvatrucha, also known as the MS-13, a transnational criminal organization, pleaded guilty in federal court in Central Islip to racketeering and related firearms charges in connection with his participation in the May 26, 2013 murder of Derrick Mayes, the May 28, 2013 murder of Keenan Russell, and the November 19, 2015 murder of Cesar Rivera-Vasquez. The proceeding was held before United States District Judge Gary R. Brown.
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.
"With today’s guilty plea, the defendant has admitted to participating in a murderous rampage that was senseless and demonstrated a total disregard for human life by hunting down victims based on an offending article of clothing or a tattoo. His heinous acts were motivated by a twisted desire to increase his status within the MS-13 gang. This case underscores the resolve of this Office and the Long Island Gang Task Force to bring the MS-13 to justice for their crimes against our communities,” stated United States Attorney Peace. “We offer our sympathy to the victims’ families and loved ones who join the tragic community of those devastated by gun violence, and hope today’s plea will bring some measure of closure on their path to healing.”
“These murders are a grim reminder of the violence and lack of regard for human life that MS-13 exudes - killing innocent people simply because they are wearing a certain color or are believed to be from a rival gang,” stated SCPD Commissioner Harrison said. “With today’s guilty plea, Suffolk County is undoubtedly a safer place and I commend the Eastern District of New York and the members of the Long Island Task Force for their tireless efforts ridding communities of gang violence.”
According to court filings and statements by the defendant at the guilty plea proceeding, Contreras participated in the murders of Derrick Mayes and Keenan Russell over the Memorial Day weekend in 2013. On May 26, 2013, Contreras and another MS-13 member armed themselves with a .25 caliber handgun and 20-gauge shotgun and drove around Central Islip in a stolen minivan looking for rival gang members to kill. While on Wilson Boulevard, Contreras and his co-conspirator observed Mayes, an African-American man, who they did not know and wrongly assumed to be a member of the Bloods street gang because he was wearing an article of red clothing. The MS-13 members approached Mayes, shot him multiple times, killing him. The following night, Contreras and several other MS-13 members, who were armed with the same .25 caliber handgun and 20-gauge shotgun, as well as a 9mm handgun, again drove around Central Islip in the stolen minivan and other vehicles, looking for rival gang members to kill, and observed several African-Americans, including Russell, outside of a house party on Acorn Street. The MS-13 members approached Russell, who they did not know and again mistakenly assumed to be a member of the Bloods, opened fire with the weapons, killing him. Later, the MS-13 members learned that the minivan had been linked to the murders and they agreed to destroy it. Contreras and several other gang members drove the minivan to a wooded area in Ronkonkoma, wiped it down to remove any fingerprints, doused it with gasoline, and set it on fire.
In addition, Contreras admitted during his guilty plea today to participating in the murder of Cesar Rivera-Vasquez on November 19, 2015, in Babylon. Rivera-Vasquez was murdered by Contreras and other MS-13 members because they suspected him of belonging to a rival Mexican gang, Raza Loca. On the night of the murder, Contreras and his co-conspirators saw Rivera-Vasquez at a deli located close to the Babylon Long Island Railroad station. Contreras and the other MS-13 members convinced the victim to leave with them to smoke marijuana and brought him to an isolated area behind a nearby baseball field. The gang members, who were armed with knives and a baseball bat, told the victim to take off his shirt so they could observe a tattoo they believed signified the victim’s membership in the rival gang. After observing the tattoo, Contreras and the other MS-13 members attacked Rivera-Vasquez, beating him with the bat and stabbing him repeatedly with knives before one of the co-conspirators took one of the knives and cut his throat. After Rivera-Vasquez was dead, the MS-13 members buried his body near a large mound of dirt, and Rivera-Vasquez’s body was not discovered until April 2018. When sentenced, Contreras faces a maximum sentence 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:JHONNY CONTRERAS
Age: 28
Brentwood, New YorkE.D.N.Y. Docket No. 16-CR-403 (GRB)
Hacker and Ransomware Designer Charged for Use and Sale of Ransomware, and Profit Sharing Arrangements with CybercriminalsRead the Press Release
A criminal complaint was unsealed today in federal court in Brooklyn, New York, charging Moises Luis Zagala Gonzalez (Zagala), also known as “Nosophoros,” “Aesculapius” and “Nebuchadnezzar,” a citizen of France and Venezuela who resides in Venezuela, with attempted computer intrusions and conspiracy to commit computer intrusions. The charges stem from Zagala’s use and sale of ransomware, as well as his extensive support of, and profit sharing arrangements with, the cybercriminals who used his ransomware programs.
Breon Peace, United States Attorney for the Eastern District of New York, and Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the charges.
“As alleged, the multi-tasking doctor treated patients, created and named his cyber tool after death, profited from a global ransomware ecosystem in which he sold the tools for conducting ransomware attacks, trained the attackers about how to extort victims, and then boasted about successful attacks, including by malicious actors associated with the government of Iran,” stated United States Attorney Peace. “Combating ransomware is a top priority of the Department of Justice and of this Office. If you profit from ransomware, we will find you and disrupt your malicious operations.”
"We allege Zagala not only created and sold ransomware products to hackers, but also trained them in their use. Our actions today will prevent Zagala from further victimizing users. However, many other malicious criminals are searching for businesses and organizations that haven't taken steps to protect their systems - which is an incredibly vital step in stopping the next ransomware attack," stated Assistant Director-in-Charge Driscoll.
As charged in the criminal complaint, Zagala, a 55-year-old cardiologist who resides in Ciudad Bolivar, Venezuela, has designed multiple ransomware tools—malicious software that cybercriminals use to extort money from companies, nonprofits and other institutions, by encrypting those files and then demanding a ransom for the decryption keys. Zagala sold or rented out his software to hackers who used it to attack computer networks.
One of Zagala’s early products, a ransomware tool called “Jigsaw v. 2,” had, in Zagala’s description, a “Doomsday” counter that kept track of how many times the user had attempted to eradicate the ransomware. Zagala wrote: “If the user kills the ransomware too many times, then its clear he won’t pay so better erase the whole hard drive.”
Beginning in late 2019, Zagala began advertising a new tool online—a “Private Ransomware Builder” he called “Thanos.” The name of the software appears to be a reference to a fictional cartoon villain named Thanos, who is responsible for destroying half of all life in the universe, as well as a reference to the figure “Thanatos” from Greek mythology, who is associated with death. The Thanos software allowed its users to create their own unique ransomware software, which they could then use or rent for use by other cybercriminals. The user interface for the Thanos software is shown below:[1]
The screenshot shows, on the right-hand side, an area for “Recovery Information,” in which the user can create a customized ransom note. Other options include a “data stealer” that specifies the types of files that the ransomware program should steal from the victim computer, an “anti-VM” option to defeat the testing environments used by security researchers, and an option, as advertised, to make the ransomware program “self-delete.”
Rather than simply sell the Thanos software, Zagala allowed individuals to pay for it in two ways. First, a criminal could buy a “license” to use the software for a certain period of time. The Thanos software was designed to make periodic contact with a server in Charlotte, North Carolina that Zagala controlled for the purpose of confirming that the user had an active license.[2] Alternatively, a Thanos customer could join what Zagala called an “affiliate program,” in which he provided a user access to the Thanos builder in exchange for a share of the profits from Ransomware attacks. Zagala received payment both in fiat currency and cryptocurrency, including Monero and Bitcoin.
Zagala advertised the Thanos software on various online forums frequented by cybercriminals, using screennames that referred to Greek mythology. His two preferred nicknames were “Aesculapius,” referring to the ancient Greek god of medicine, and “Nosophoros,” meaning “disease-bearing” in Greek. In public advertisements for the program, Zagala bragged that ransomware made using Thanos was nearly undetectable by antivirus programs, and that “once encryption is done,” the ransomware would “delete itself,” making detection and recovery “almost impossible” for the victim.
In private chats with customers, Zagala explained to them how to deploy his ransomware products—how to design a ransom note, steal passwords from victim computers, and set a Bitcoin address for ransom payments. As Zagala explained to one customer, discussing Jigsaw: “Victim 1 pays at the given btc [Bitcoin] address and decrypts his files.” Zagala also noted that “there is a punishment… [i]f user reboots. For every rerun it will punish you with 1000 files deleted.” After Zagala explained all the features of the software, the customer replied: “Sir, I really need to say this . . . You are the best developer ever.” Zagala responded: “Thank you that is nice to hear[.] Im very flattered and proud.” Zagala had only one request: “If you have time and its not too much trouble to you please describe your experience with me” in an online review.
On or about May 1, 2020, a confidential human source of the FBI (CHS-1) discussed joining Zagala’s “affiliate program.” Zagala responded: “Not for now. Don’t have spots.” But Zagala offered to license the software to CHS-1 for $500 a month with “basic options,” or $800 with “full options.”
On or about October 7, 2020, CHS-1 asked Zagala how to establish an affiliate program of his own using Thanos. Zagala responded with a short tutorial on how to set up a ransomware crew. He explained that CHS-1 should find people “versed…in LAN hacking” and supply them with a version of the Thanos ransomware that was programmed to expire after a given period of time.[3] Zagala said that he personally had “a maximum of between 10-20” affiliates at a given time, and “sometimes only 5.” He added that hackers approached him for his software after they had gained access to a victim network: “they come with access to [b]ig LAN, I check and then I accept[.] they lock several big networks and we wait…If you lock networks without tape or cloud (backups)[,] almost all pay[.]”
Zagala further explained that, sometimes, a victim network turned out to have an unexpected backup: “so no point in locking because they have backups, so in that case we only exfiltrate data,” referring to stealing victim information. Zagala further added that he had an associate who “knows how to corrupt tapes,” meaning backups, and how to “disable[] AV,” meaning antivirus software. Finally, Zagala offered to give CHS-1 an additional two weeks free after CHS-1’s one-month license expired, explaining “because 1 month is too little for this business…sometimes you need to work a lot to get good profit.”
Zagala’s customers favorably reviewed his products. One individual posted a message praising Thanos in July 2020, writing “i bought the ransomware from nosophoros and it is very powerful,” and claiming that he had used Zagala’s ransomware to infect a network of approximately 3000 computers. And, in December 2020, another user wrote a post in Russian: “We have been working with this product for over a month now, we have a good profit! Best support I’ve met.” Zagala has publicly discussed his knowledge that his clients used his software to commit ransomware attacks, including by linking to a news story about an Iranian state-sponsored hacking group’s use of Thanos to attack Israeli companies.
In or around November 2021, Zagala began using a third screenname – “Nebuchadnezzar.” In chats with a second confidential source of the FBI (CHS-2), Zagala stated that he had switched aliases to preserve “OPSEC… operational security” because “malware analysts are all over me.”
On or about May 3, 2022, law enforcement agents conducted a voluntary interview of a relative of Zagala who resides in Florida and whose PayPal account was used by Zagala to receive illicit proceeds. The individual confirmed that Zagala resides in Venezuela and had taught himself computer programming. The individual also showed agents contact information for Zagala in his phone that matched the registered email for malicious infrastructure associated with the Thanos malware.
If convicted, the defendant faces up to five years’ imprisonment for attempted computer intrusion, and five years’ imprisonment for conspiracy to commit computer intrusions.
The government’s case is being handled by the Office’s National Security and Cybercrime Section. Assistant United States Attorneys David K. Kessler and Alexander F. Mindlin are in charge of the prosecution.
The Defendant:
MOISES LUIS ZAGALA GONZALEZ
Age: 55
Ciudad Bolivar, VenezuelaE.D.N.Y. Docket No. 21-M-276
[1] On September 14, 2020, an FBI agent surreptitiously purchased a license for Thanos from Zagala, and downloaded the software.
[2] This server has been taken offline.
[3] “LAN” stands for “local area network” and refers to a computer network that interconnects computers within a limited area such as an office building.
United States Attorney Breon Peace Recognizes National Police WeekRead the Press Release
In honor of National Police Week, United States Attorney Breon Peace recognizes the service and sacrifice of federal, state, and local law enforcement. This year, the week is observed Wednesday, May 11 through Tuesday, May 17, 2022.
“This week, we gather to pay tribute to the law enforcement officers who sacrificed their lives in service to our country,” stated U.S. Attorney General Merrick B. Garland. “We remember the courage with which they worked and lived. And we recommit ourselves to the mission to which they dedicated their lives. On behalf of a grateful Justice Department and a grateful nation, I extend my sincerest thanks and gratitude to the entire law enforcement community.”
“These are challenging times for the brave members of law enforcement who, at great risk to themselves from gun violence, COVID-19 and other threats endemic to their profession, answer the call of duty every day to protect the communities in our district,” stated United States Attorney Peace. “This week, join me in honoring and thanking these selfless men and women for their public service, and their families, too, who share in the sacrifices made for our benefit.”
In 1962, President Kennedy issued the first proclamation for Peace Officers Memorial Day and National Police Week to remember and honor law enforcement officers for their service and sacrifices. Peace Officers Memorial Day, which every year falls on May 15, specifically honors law enforcement officers killed or disabled in the line of duty. Based on data submitted to and analyzed by the National Law Enforcement Officer Memorial Fund (NLEOMF), 472 law enforcement officers died nationwide in the line of duty in 2021. Of that number, 319 succumbed to the Coronavirus, including Lieutenant Robert John Van Zeyl of the Suffolk County Police Department, Sergeant John Lowry of the Suffolk County Sheriff’s Office, and Police Officers Leonardo Chavez and Marze Murray, Jr., of the New York City Police Department’s Transit Bureau.
Additionally, according to 2021 statistics reported by the Federal Bureau of Investigation (FBI) through the Law Enforcement Officer Killed and Assaulted (LEOKA) Program, 73 law enforcement officers who died in the line of duty in 2021 were killed as a result of felonious acts, whereas 56 died in accidents. Deaths resulting from felonious acts increased in 2021, rising more than 58 percent from the previous year. In 2021, unprovoked attacks[1] were the cause of 24 deaths, significantly outpacing all other line of duty deaths resulting from felony acts and reaching the highest annual total in over 30 years of reporting. Additional LEOKA statistics can be found on the FBI’s Crime Data Explorer website for the LEOKA program.
The names of the 619 fallen officers added this year to the wall at the National Law Enforcement Officer Memorial will be read on Friday, May 13, 2022, during a Candlelight Vigil in Washington, D.C., starting at 8:00 PM EDT. Those who wish to view the vigil live online, can watch on the NLEOMF YouTube channel found at https://www.youtube.com/TheNLEOMF. The schedule of National Police Week events is available on NLEOMF’s website.
[1] An unprovoked attack is defined as an attack on an officer not prompted by official contact at the time of the incident between the officer and the offender. Source: Federal Bureau of Investigation (FBI) through the Law Enforcement Officer Killed and Assaulted (LEOKA) Program.
Brooklyn High School Paraprofessional Charged with Production of Child Pornography and Sextortion SchemeRead the Press Release
An 11-count indictment was unsealed today in federal court in Brooklyn charging Brian Quinones, a paraprofessional at Midwood High School, with sexual exploitation of a child, distribution of child of pornography, cyberstalking, and related offenses. The charges relate to sexually explicit videos of a child that the defendant allegedly requested and received from a boy he met over the Internet, as well as other sexually explicit images and videos that the defendant possessed and distributed. Quinones was arrested today and is scheduled to be arraigned this afternoon before United States Magistrate Judge Peggy Kuo.
Breon Peace, United States Attorney for the Eastern District of New York, Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Keechant L. Sewell, Commissioner, New York City Police Department (NYPD), announced the arrest and charges.
“As alleged, Quinones was a prolific trader of child pornography who posed as a woman in order to solicit sexually explicit videos from a minor boy, then blackmailed the victim with cruel threats to post the material on the Internet,” stated United States Attorney Peace. “This Office is working diligently with our law enforcement partners to address the online exploitation of minors and protect our children from predators like Quinones. Today’s prosecution should also serve as a reminder to parents and caregivers to remain vigilant about your children’s communications over the Internet and the importance of educating our children about the dangers of communicating online with strangers.”
Mr. Peace thanked the FBI/NYPD Child Exploitation and Human Trafficking Task Force for its investigative work on the case.
“Sexual predators often prey on the terror children experience when they are coerced and manipulated into creating explicit photos and videos,” stated FBI Assistant Director-in-Charge Driscoll. “We allege Quinones threatened to expose the images his victim created if the child didn't continue to send him more. Children often fear going to an adult to report what's happened because they're humiliated, and they believe the threats. The FBI Child Exploitation and Human Trafficking Task Force believes Quinones may have more victims, and we ask anyone with information to contact us at 1-800-CALL-FBI or tips.fbi.gov so we can hold him fully accountable for his actions.”
“Any kind of sexual exploitation of a minor is absolutely detestable behavior,” stated NYPD Commissioner Sewell. “But when the suspect has also been entrusted with our communities’ children, it is especially disturbing. Decades ago, predators would go to a playground or a park to find young victims. Now, there’s an entire virtual world full of potential targets. These types of crimes have devastating effects on children and their families, and I commend and thank all of the investigators at the NYPD, FBI, and the U.S. Attorney’s Office for the Eastern District who are dedicated to identifying and bringing to justice those who commit such offenses.”
As set forth in court filings, between September 2019 and January 2020, Quinones used an instant messaging mobile application to trade dozens of videos and images depicting child pornography with another individual who has since been charged with child pornography-related offenses. Following a court-authorized search of Quinones’s residence and the seizure of his electronic devices, FBI Special Agents discovered a series of sexually explicit messages between Quinones, who was impersonating a woman, and a minor male victim (John Doe), who Quinones lured into creating and sending sexually explicit videos. Quinones then threatened to post the victim’s material on the Internet unless the victim agreed to make additional sexually explicit content. The defendant stated in a WhatsApp message: “I got everything you sent,” adding that he would “ruin” John Doe. The defendant directed John Doe to do “[e]verything I tell u to do” and to “behave.” He then wrote, “Get on your hands and knees.” When John Doe declined to do so, the defendant threatened, “I’m ready to make u famous[.] Any last words?’
If convicted of sexual exploitation of a child, Quinones faces a mandatory minimum of 15 years’ imprisonment.
The charges in the indictment are merely allegations, and the defendant is presumed innocent unless and until proven guilty.
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 prosecuted by Assistant United States Attorney Eric Silverberg.
The Defendant:
BRIAN QUINONES
Age: 30
Sheepshead Bay, BrooklynE.D.N.Y. Docket No. 22-CR-218 (HG)
四名男子被指控谋杀 31 岁的皇后区男子Read the Press Release
美国纽约东区地方法院今天公布了一项两项罪名起诉书，指控Qing Ming Yu （又名“Allen Yu”）、Antony Abreu，又名“Antony”，You You，又名 “Eddie”，和 Zhe Zhang，又名“Zack” 2019 年 2 月 12 日谋杀31 岁的皇后区居民Xin Gu。
Qing Ming Yu和You You今天在纽约被捕，Zhe Zhang在加州被捕。 Antony Abreu 已被联邦拘留，因一件不相关的事情正在服刑，稍后将被转移到纽约东区。 Qing Ming Yu和You You定于今天下午在美国地方法官 Kuo面前被提审。 Zhe Zhang的首次出庭将在美国加州中区地方法院举行。 美国纽约东区检察官 Breon Peace、纽约外地办事处 (FBI) 联邦调查局助理主管 Michael J. Driscoll 和纽约市专员 Keechant L. Sewell 警察局 (NYPD) 宣布了逮捕和指控。
正如指控的那样，被告无情地使用枪支暴力来解决商业纠纷，将一个人的生命价值降低到美元数字，给社区带来创伤和哀悼，”美国检察官Peace说。 “起诉凶手永远是这个办公室的首要任务——无论是被告扣动扳机，还是付钱给别人为他做肮脏的工作。”
Peace先生对皇后区地方检察官办公室在调查中的协助表示感谢。 据称，Qing Ming Yu聘请他的侄子谋杀他认为的商业对手。 他的行为远远超出了糟糕的商业实践，表现出对人类生命的冷酷无情。 由于我们今天与合作伙伴采取的行动，Qing Ming Yu和参与剧情的每个人都不必再为生意操心了——因为他们被指控的罪行将面临正义和终身监禁的可能性， ”助理主管 Driscoll 说。
“我们之前已经说过：如果有人参与了纽约市的谋杀案，我们会找到他们并确保伸张正义，”纽约警察局局长 Sewell 说。“不知疲倦的工作 在本案中，侦探、特工和检察官帮助追究涉嫌对这起谋杀案负责的人对他们的行为负责。这是我们机构合作致力于公共安全的另一个例子，进一步证明没有人是无法控制的。
法庭文件详述，2015 年至 2018 年间，Xin Gu在Qing Ming Yu的房地产开发公司曼哈顿办公室工作。 几年来，Xin Gu开始担心公司的财务状况。 此后，Xin Gu辞职，成立了自己的房地产开发公司。
Xin Gu离职后，数名客户和员工也与Qing Ming Yu的公司断绝关系，该公司于 2018 年底关闭。Qing Ming Yu对Xin Gu不忠的行为感到愤怒，聘请侄子You You杀了Xin Gu以换取报酬。 You You 又聘请了 Zhang 和 Antony Abreu 协助执行谋杀。
2019 年 2 月 11 日晚，一直到第二天早上，Xin Gu的新公司在纽约皇后区的一家卡拉 OK 酒吧举办了一场农历新年庆祝活动。 被告人得知Xin Gu一行人的消息，决定当晚将其杀死，由You You看守，Zhe Zhang为逃跑司机，Abreu多次向新谷开枪，将其杀死。
如果罪名成立，每位被告都将面临终身监禁或死刑的强制性判决。
起诉书中的指控仅仅是指控，除非被证明有罪，否则假定无罪。
政府的案件由办公室的有组织犯罪和帮派科处理。 美国助理检察官 Devon Lash、Nadia E. Moore 和 Gabriel Park 负责起诉。
被告人：
QING MING YU，又名“Allen”
年龄：54
纽约州牡蛎湾Antony ABREU，又名“Anthony”
年龄：34
纽约皇后区YOU YOU，又名“Eddie”
年龄：34
Plainview, New YorkZHE ZHANG，又名“Zack”
年龄：34
Arcadia, CaliforniaE.D.N.Y.Docket No。 22-CR-208
Four Men Charged with Murder for Hire in Fatal Shooting of Queens ManRead the Press Release
A two-count indictment was unsealed today in federal court in Brooklyn charging Qing Ming Yu, also known as “Allen Yu,” Antony Abreu, also known as “Anthony,” You You, also known as “Eddie,” and Zhe Zhang, also known as “Zack,” with the February 12, 2019 murder of Xin Gu, a 31-year-old Queens resident.
Qing Ming Yu and You You were arrested today in New York and Zhe Zhang was arrested in California. Antony Abreu is already in federal custody serving a sentence in an unrelated matter and will be transferred to the Eastern District of New York at a later date. Qing Ming Yu and You You are scheduled to be arraigned this afternoon before United States Magistrate Judge Peggy Kuo. Zhe Zhang’s initial appearance will take place in the United States District Court in Los Angeles.
Breon Peace, the 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 callously used gun violence to resolve a business dispute, reducing the value of a man’s life to a dollar figure, and bringing trauma and mourning to the community,” stated United States Attorney Peace. “Prosecuting killers will always be a top priority for this office—whether the defendant pulls the trigger, or pays someone else to do his dirty work for him.”
Mr. Peace expressed his appreciation to the Queens County District Attorney’s Office for its assistance in the investigation.
“As alleged, Qing Ming Yu hired his nephew to murder his perceived business rival. His conduct went well beyond poor business practice demonstrating a callous disregard for human life. As a direct result of the action we have taken with our partners today, Qing Ming Yu and everyone involved in the plot won't have to worry about business anymore - as they face justice for their alleged crimes and the possibility of life in prison,” stated FBI Assistant Director-in-Charge Driscoll.“We have said it before: If anyone is involved in a murder in New York City, we will find them and ensure that justice is served,” stated NYPD Commissioner Sewell. “The tireless work of the detectives, agents, and prosecutors in this case helped hold the men allegedly responsible for this murder accountable for their actions. It is another example of our agencies’ collaborative commitment to public safety, and further proof that no one is beyond the reach of the law.”
As detailed in court documents, between 2015 and 2018, Xin Gu worked for Qing Ming Yu’s property development company at its Manhattan office. After several years, Xin Gu became concerned about the company’s financial viability. Thereafter, Xin Gu resigned and formed his own property development company.
After Xin Gu’s departure, several clients and employees also cut ties with Qing Ming Yu’s company, which then closed at the end of 2018. Enraged at Xin Gu’s perceived disloyalty, Qing Ming Yu allegedly hired his nephew You You to kill Xin Gu in exchange for payment. You You in turn allegedly hired Zhang and Antony Abreu to assist in carrying out the murder.
On the evening of February 11, 2019, into the following morning, Xin Gu’s new company hosted a celebration of the Lunar New Year at a karaoke bar in Queens, New York. The defendants learned of Xin Gu’s party and decided to kill him that night, with You You acting as a lookout, Zhe Zhang serving as the getaway driver and Abreu shooting Xin Gu multiple times, killing him.
If convicted, each defendant faces a mandatory sentence of life in prison, or the death penalty.
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 Organized Crime and Gangs Section. Assistant United States Attorneys Devon Lash, Nadia E. Moore and Gabriel Park are in charge of the prosecution.
The Defendants:
QING MING YU (also known as “Allen”)
Age: 54
Oyster Bay, New York
ANTONY ABREU (also known as “Anthony”)
Age: 34
Queens, New YorkYOU YOU (also known as “Eddie”)
Age: 34
Plainview, New YorkZHE ZHANG (also known as “Zack”)
Age: 34
Arcadia, CaliforniaE.D.N.Y. Docket No. 22-CR-208 (CBA)
Cybercriminal Charged with Unauthorized Computer Intrusion, Securities Fraud, Wire Fraud and Other CrimesRead the Press Release
A criminal complaint was unsealed today in federal court in Brooklyn charging Idris Dayo Mustapha, a citizen of the United Kingdom, with computer intrusion, securities fraud, money laundering, bank fraud and wire fraud, among other offenses. The charged crimes stem from a variety of alleged criminal conduct between 2011 and 2018 in which Mustapha gained access to U.S.-based computers, including email servers and computers belonging to U.S. financial institutions, in order to steal money from online bank accounts and securities brokerage accounts. Mustapha was arrested in the United Kingdom in August 2021 and the United States is seeking his extradition to the Eastern District of New York.
Breon Peace, United States Attorney for the Eastern District of New York, and Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the charges.
“As alleged in the complaint, the defendant was part of a nefarious group that caused millions of dollars in losses to victims by engaging in a litany of cybercrimes, including widespread hacking, fraud, taking control of victims’ securities brokerage accounts, and trading in the name of the victims,” stated United States Attorney Peace. “Protecting residents of the Eastern District and financial institutions from cybercriminals is a priority of this Office.”
"Cyber crimes are insidious because the criminals lurk in places most people don't see, and many don't understand. Taking over victims' email accounts and then stealing millions of dollars are just some of the crimes we allege Mustapha committed over the course of many years. Using digital platforms for banking and investing are now part of our everyday life, and the FBI is focused on making these tools safe from criminals like Mustapha,” stated Assistant Director-in-Charge Driscoll.
As charged in the criminal complaint, starting in 2011, Mustapha and his co-conspirators engaged in a long-running scheme to steal money through a variety of computer intrusions and frauds.
In one part of the scheme, Mustapha and his co-conspirators allegedly obtained login information for victims’ securities brokerage accounts through various methods. The conspirators then used their access to those accounts to steal money and conduct trades to their own benefit. Initially, conspirators accessed the victims’ brokerage accounts and transferred money from those accounts to other accounts under their control. After financial institutions began to block those unauthorized transfers, Mustapha and his co-conspirators accessed other victims’ brokerage accounts and placed unauthorized stock trades within those accounts while simultaneously trading profitably in the same stocks from accounts that they controlled. For example, on or about April 16, 2016, Mustapha and a co-conspirator exchanged electronic chat messages in discussing this unauthorized trading. During the exchange, Mustapha’s co-conspirator announced access to the computers of a brokerage firm and questioned whether to engage in unauthorized trading or simply to wire money out of the brokerage account. Mustapha wrote back: “better to go trade up and down and [] not direct fraud wire.” Additionally, as part of the scheme, Mustapha flew to New York in June 2015 and opened an account at a U.S. financial institution in New Jersey; Mustapha and his co-conspirators later transferred approximately $104,000 from a brokerage account used to conduct unauthorized trading to Mustapha’s U.S. bank account.
In another part of the scheme, Mustapha and his co-conspirators allegedly obtained login information for victims’ email accounts and accessed those accounts without authorization to obtain financial and personal identifying information about their victims. The conspirators then contacted the victims’ financial institutions—by phone and by email messages —requesting that the victims’ financial institutions wire money from the victims to overseas bank accounts that the conspirators controlled. For example, in May 2013, Mustapha and his co-conspirators obtained $50,000 from an investment account that belonged to U.S. victims, and Mustapha directed the transfer of those funds to a series of bank accounts controlled by the conspirators. In April 2013, Mustapha and his co-conspirators attempted to defraud a victim located in the Eastern District of New York by obtaining control over the victims’ email account and using it to send written instructions—which falsely appeared to have been signed by the victim—to transfer $225,000 from one of the victim’s accounts, but the victim’s financial institution rejected the transfer request.
As a result of these schemes, Mustapha and his co-conspirators realized financial gains while causing losses of more than $5 million to financial institutions, including brokerage firms.
If convicted, the defendant faces up to 20 years’ imprisonment for each of the money laundering and wire and securities fraud charges, and a mandatory consecutive two-year sentence for the charge of aggravated identity theft.
The government’s case is being handled by the Office’s National Security and Cybercrime Section and Business and Securities Fraud Section. Assistant United States Attorneys David K. Kessler, Alexander F. Mindlin, Sarah M. Evans and Jonathan E. Algor are in charge of the prosecution. The Justice Department’s Office of International Affairs is also providing substantial assistance.
The Defendant:
IDRIS DAYO MUSTAPHA
Age: 32
United KingdomE.D.N.Y. Docket No. 17-M-367
Brooklyn Gang Leader Sentenced to 24 Years in Prison for Murder for Hire Conspiracy, Use of a Firearm, and Narcotics TraffickingRead the Press Release
Earlier today, in federal court in Brooklyn, Ronald Williams, a leader of the ‘90s Crew street gang based in the Canarsie and East Flatbush neighborhoods of Brooklyn, was sentenced by United States District Judge LaShann DeArcy Hall to 24 years’ imprisonment for conspiracy to commit murder-for-hire, conspiracy to commit obstruction of justice murder, conspiracy to distribute marijuana, use of a firearm during a drug trafficking crime, and being a felon in possession of a firearm and ammunition. Williams was convicted by a federal jury on January 24, 2018 following a two-week trial. Williams’ co-defendant, Leon Campbell, pleaded guilty in June 2019 to murder-for-hire conspiracy and conspiracy to distribute marijuana, and was sentenced in November 2019 to nine years’ imprisonment.
Breon Peace, United States Attorney for the Eastern District of New York, and Frank A. Tarentino III, Special Agent-in-Charge, Drug Enforcement Administration, New York Division (DEA), announced the sentence.
“Ronald Williams showed his indifference for a human life when, without any hesitation, he accepted money to kill someone suspected of being an informant for federal law enforcement,” stated United States Attorney Peace. “Today’s lengthy sentence demonstrates the seriousness of obstructing justice and that those who seek to do so will be punished. Our district is a safer place with this dangerous and ruthless felon off the streets. I commend the DEA for taking swift action in warning the victim and preventing the planned murder from being carried out.”
“This sentencing demonstrates DEA’s relentless pursuit to seek justice for drug trafficking and violent crimes,” stated DEA Special Agent-in-Charge Tarentino. “The investigation underscores the relationship between drug trafficking and violence, and further demonstrates our commitment and resolve to holding those accountable for causing the most harm in our communities. I commend the hard work of the agents, prosecutors, and law enforcement partners who worked tirelessly on this investigation.”
On April 26, 2013, DEA agents were following Campbell as he was making a delivery of marijuana to a customer in Brooklyn. Campbell spotted the agents and fled, suspecting that his marijuana customer was an informant providing information to federal law enforcement. On April 30, 2013, Campbell called Williams and offered to pay him $5,000 to kill the individual he suspected was a federal informant. Williams agreed to commit the murder and began planning the murder, including selecting a gang member to carry out the contract. Federal agents, however, were able to identify the potential victim, and the murder was not carried out.
Williams was also convicted of being a felon in possession of a firearm and ammunition found during the execution of a search warrant at his residence and using a firearm in connection with the charged drug trafficking crime. The items recovered during a search of Williams’ residence on East 96th Street in Brooklyn included three handguns and several pounds of marijuana, a drug ledger, a safe, and a police scanner.
The government’s case is being prosecuted by Assistant United States Attorney Hiral D. Mehta.
The Defendant:
RONALD WILLIAMS
Age: 47
Brooklyn, New YorkE.D.N.Y. Docket No. 13-CR-419 (LDH)
Two Former Managers of National Grid Sentenced to Prison for Bribery and Kickback SchemeRead the Press Release
Earlier today, in federal court in Brooklyn, Patrick McCrann and Richard Zavada, two former managers in the facilities department of the New York utility company National Grid, were sentenced by United States District Judge Carol Bagley Amon for their participation in a years-long bribery and kickback scheme. Zavada was sentenced to a year and one day in prison, with a $10,000 fine and $330,735 forfeiture and McCrann was sentenced to a year and one day of prison, with a $10,000 fine and $200,000 forfeiture. The defendants each pleaded guilty to a violation of the Travel Act in October 2021.
Carolyn Pokorny, First Assistant 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 sentences.
“Today’s sentence metes out just punishment to these bid riggers who accepted hundreds of thousands of dollars in bribes and kickbacks, including cash, international vacations, home improvements, and recreational vehicles,” stated First Assistant United States Attorney Pokorny. “This Office will continue to root out corruption that undermines the integrity of competitive bidding in the procurement process.”
McCrann and Zavada were National Grid managers employed in the facilities department, who steered contracts to certain contractors in exchange for hundreds of thousands of dollars in bribes and kickbacks. One contractor (the “Contractor”) secured more than $50 million in facility maintenance contracts from National Grid during the time that the Contractor was paying bribes to the defendants. As managers, the defendants had the authority to approve “no-bid” contracts valued at less than $50,000. The Contractor understood that if it did not pay bribes, these defendants would award National Grid’s work to the Contractor’s competitors. In exchange for the bribe payments, the defendants also took various steps to assist the Contractor in obtaining contracts from National Grid, including, among other things, offering favorable reviews of the Contractor’s work. The Contractor paid bribes to ensure that the defendants did not slow or stop disbursement of project funds to the Contractor, provide negative performance reviews regarding the Contractor’s work, or otherwise claim that the Contractor’s work did not meet contractual specifications.
The illicit payments to the defendants took multiple forms, including cash, the purchase of recreational vehicles, home improvements, landscaping and overseas vacations. As part of the investigation, agents recovered approximately $300,000 in cash from a safe deposit box held by Zavada.
Three other former National Grid managers, Devraj Balbir, Ricardo Garcia and Jevan Seepaul, have previously entered pleas of guilty to accepting bribes from the Contractor and are awaiting sentence.
The government’s case is being handled by the Office’s Public Integrity Section. Assistant United States Attorneys Turner Buford and Artie McConnell are in charge of the prosecution.
The Defendants:
Patrick McCrann
Age: 57
Selden, New YorkE.D.N.Y. Docket No. 21-CR-467 (CBA)
Richard Zavada
Age: 65
Hicksville, New YorkE.D.N.Y. Docket No. 21-CR-468 (CBA)
Latin King Gang Member Sentenced to More Than 18 Years in Prison for the 2005 Murder of C.W. Post Student-Basketball StarRead the Press Release
Earlier today, at the federal courthouse in Central Islip, Jaime Rivera, a member of the Almighty Latin King and Queen Nation street gang, was sentenced by United States District Court Judge Denis R. Hurley to 220 months’ imprisonment for the 2005 murder of C.W. Post college student and basketball star, Tafare Berryman. Rivera pleaded guilty to the gang-related murder in March 2019.
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), Frank A. Tarentino III, Special Agent-in-Charge, Drug Enforcement Administration, New York Division (DEA), and Patrick J. Ryder, Commissioner, Nassau County Police Department (NCPD), announced the sentence.
“Tafare Berryman, a college student, athlete and beloved member of the Brooklyn and Long Island communities, was senselessly murdered, depriving him of the bright future he worked so hard to achieve and leaving his bereaved family shattered,” stated United States Attorney Peace. “This murder, which occurred 17 years ago, was never forgotten and is an example of this Office’s unwavering commitment to justice for the victims of gang violence.”
Mr. Peace expressed his appreciation to the FBI, DEA and NCPD for their outstanding work on the case.
According to court filings and the facts presented at the plea proceeding, on April 2, 2005, Rivera and other Latin King gang members were present at La Mansion bar and nightclub, located on Long Beach Road in North Long Beach. Also present were several C.W. Post students, including the victim and several of his friends. At least one altercation occurred in the club between gang members and a C.W. Post student, and later continued outside in the parking lot. Berryman was not involved in either of the altercations.
After Berryman and one of his friends left the club together, and while walking to their car, the friend was hit in the head with a bottle, causing a laceration. The two entered a car and Berryman’s friend drove away from the area. A short time later, Berryman’s friend pulled the car over to the side of the road to tend to the cut on his head. Rivera then drove up alongside the car and fatally shot Berryman, under the erroneous belief that Berryman and his friend had been involved in the prior altercation that posed a threat to the gang.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorney Mark E. Misorek and Special Assistant United States Attorney Lara Treinis Gatz are in charge of the prosecution.
The Defendant:
Jamie Rivera
Age: 35
Freeport, New YorkE.D.N.Y. Docket No. 17-CR-50 (DRH)
U.S. Attorney's Office EDNY and Other Law Enforcement Officials to Hold Press Conference on Extradition of Dairo Antonio Úsuga David "Otoniel"Read the Press Release
BROOKLYN – Today, May 5, Breon Peace, United States Attorney for the Eastern District of New York will lead a press conference with Anne Milgram, Administrator for the Drug Enforcement Administration, Ricky J. Patel, Acting Special Agent in Charge, Homeland Security Investigations, New York Office, Michael Driscoll, Assistant Director in Charge, FBI New York Field Office, Captain Thomas Kelly, Commanding Officer of the Drug Enforcement Task Force New York City Police Department, Lieutenant Tim Mannix and Senior Investigator Fabricio Plaskocinski, New York State Police to discuss the extradition of Dairo Antonio Úsuga David “Otoniel,” the leader of the Clan del Golfo drug trafficking organization.
WHEN: Today, Thursday, May 5, at 2 p.m.
WHERE: Attend in-person at the U.S. Attorney’s Office library 271-A Cadman Plaza East, Brooklyn, New York 11201 or via videoconference, details on the following page.
PRESS: All media must present government-issued photo I.D. (such as driver’s license) as well as valid media credentials. In-person press should arrive at 1:30 p.m.
NOTE: COVID-19 safety protocols will be observed – face coverings must be worn at all times.
Press attending via livestream can ask questions through the chat function of the video conferencing.
Press inquiries regarding logistics should be directed to 347-988-4580 or [email protected] and [email protected]
Please silence all cell phones and electronic devices before the start of the proceeding.
LIVESTREAM INFORMATION:
Event Number: 2764 060 7803
Event Password: EDNYpc22
-------------------------------------------------------
To join this online event:
1. Go to https://usao.webex.com/usao/j.php?MTID=ef033c01c22f290d3158a3cddd1cf6388
2. Enter the event password: EDNYpc22
3. Click "Join Now".
4. Follow the instructions that appear on your screen to join the teleconference.
-------------------------------------------------------
To only join the audio conference
To receive a call back, provide your phone number when you join the event, or call the number below and enter the access code.
US Toll: +1-415-527-5035
Global call-in numbers: https://usao.webex.com/usao/globalcallin.php?MTID=e722dac8d1f4faed4e65c97d00e57b3c4
Access code: 2764 060 7803
Statement of U.S. Attorney Breon Peace on United States v. Úsuga DavidRead the Press Release
"Good afternoon, I’m Breon Peace, the United States Attorney for the Eastern District of New York. Thank you all for being here this afternoon in person and online.
With me today are: Anne Milgram, Administrator for the Drug Enforcement Administration, Ricky J. Patel, Acting Special Agent in Charge, Homeland Security Investigations, New York office, from the FBI New York field office, we have Michael Driscoll, Assistant Director in Charge, from the NYPD we have Captain Thomas Kelly, Commanding Officer of the Drug Enforcement Task Force, Chief Marshal Vincent DeMarco from the United States Marshals Service, Captain Michael Sumnick from New York State Police; and my US Attorney’s Office team, AUSAs Gillian A. Kassner Tara B. McGrath and paralegal Sophia Cronin
We are here today to announce the extradition from Colombia of one of the most dangerous, most-wanted drug kingpins in the world, Dairo Antonio Úsuga David (also known as “Otoniel”), to whom murder was meaningless, and violence the ultimate currency.
For the last decade, Úsuga David has been the principal leader of the Clan Del Golfo, or CDG, the most powerful paramilitary and drug trafficking cartel in Colombia. He is responsible for trafficking vast amounts of cocaine—measured in tons, not pounds or kilograms; for earning enormous profits, measured in billions, not millions; and for overseeing an army of henchmen who murdered, kidnapped and tortured victims—including Colombian law enforcement and military personnel—to maintain control of the cartel and the regions where it operates.
His direct orders to his thousands of military-clad followers sent a ripple effect of drugs, death, and destruction to every community his cocaine shipments touched, from Colombia to right here in the Eastern District of New York. Today, he will finally face justice in a federal courtroom in Brooklyn for charges based on his role as the supreme leader of the cartel.
Úsuga David is charged in a three-count superseding indictment with leading a Continuing Criminal Enterprise from June 2003 through October 2021 and participating in an international conspiracy to manufacture and distribute cocaine, knowing and intending that the narcotics would be illegally imported into the United States.
Those are the charges, and the details about Úsuga David and his lethal organization are chilling. The CDG is one of the largest distributors of cocaine in the world.
Also known as “Los Urabeños” or “Clan Úsuga,” they are based in the Urabá region of Antioquia, Colombia, with an army of thousands of members (at its peak, around 6,000). To put that in perspective, he had more employees than the Boston and Miami police departments combined.
On the screen is a map of Colombia and a corridor of countries ultimately leading to the United States. In red, you can see the expansive territory under CDG control, much of which consisted of coastline. Within the territory under CDG control, you can see the Antioquia region, which served as the CDG’s base. You can see the Gulf of Uruba and three important port cities along the Pacific Ocean to the left and the Caribbean Sea to the right. You can see that the CDG territory is in the northwest part of the country, in closer proximity to the United States, and that these port cities provided direct access to waterways from which vessels could depart. And by the blue dotted lines, you can see some of the cocaine export routes departing from these areas that the CDG utilized to smuggle drugs into the United States.
Úsuga David’s cartel imported outrageous quantities of cocaine into the United States. The indictment charges more than 40 instances—40—where his cartel exported a ton or more of cocaine from Colombia. The CDG exports and coordinates the production, purchase, and transfer of weekly, multi-ton shipments of cocaine from Colombia into Central America and Mexico for ultimate importation into the United States. Law enforcement has intercepted some of these shipments, including over 10 tons of cocaine seized on boats off the coast of Panama and within a jungle region in Colombia.As a high-ranking leader within the CDG since its inception and its CEO for the past decade, Úsuga David directed his army to commit brutal acts of violence, terror, and retaliation; to exert control over vast territorial regions of Colombia and its people; and to export staggering quantities of cocaine destined for the United States. This was incredibly lucrative and earned Úsuga David and his cartel billions in drug proceeds.
The illicit drugs that were sent into the United States caused addiction, violence and death, and tragically eroded the quality of life for residents of the communities affected, including many within the greater New York City area, and the nation more broadly.
The CDG’s drug trafficking activities funded and enabled Úsuga David’s rise to power. The CDG has used military tactics and weapons to control the most lucrative cocaine trafficking region within Colombia. Úsuga David’s paramilitary organization—thousands of soldiers, including “sicarios,” or hitmen - murdered, assaulted, kidnapped, tortured, and assassinated at Usuga David’s direction. and the CDG imposed a “tax” on any drug traffickers operating in its territory, charging fees for every kilogram of cocaine manufactured, stored, or transported through the region.
Úsuga David’s violence included public demonstrations of his power and repression of innocent civilians. He imposed mandatory shutdowns or “strikes,” a kind of Martial law where he ordered that all businesses in CDG-controlled territory remain closed and Colombian citizens within those regions had to remain at home. He ordered CDG soldiers to execute anyone who disobeyed the shutdowns’ rules.
At Úsuga David’s direction, the CDG also carried out organized campaigns (which they called “Plan Pistolas”) to kill Colombian law enforcement and military personnel using military-grade weapons, including grenades, explosives, and assault rifles, and to assassinate individuals who were believed to be cooperating with law enforcement. On numerous occasions, Úsuga David personally ordered the murder and torture of individuals deemed to be enemies of the CDG.
For years, Úsuga David evaded capture by moving through a web of rural safe houses in the jungles of Colombia and avoiding modern technology - living off the grid. At the same time, with an army of ruthless sicarios at his command, Úsuga David was able to expand the CDG’s territory and power. He believed he was essentially untouchable. Until now.
Úsuga David’s capture was the result of an extensive joint campaign by the Colombian National Police, Colombian Air Force, and National Army of Colombia that began in 2016. Prior to Úsuga David’s arrest, the Colombian government offered a $800,000 reward for information regarding his whereabouts and the United States offered a $5 million bounty for information leading to his arrest. Úsuga David was ultimately captured on October 23, 2021, in a rural hideout in Antioquia province, Colombia, near the Colombia-Panama border, following an operation involving 500 soldiers and 22 helicopters. President Ivan Duque of Colombia described the operation as “the biggest penetration of the jungle ever seen in the military history of our country.”
A case like this one requires an army of its own, and I am grateful to the work of my office and our partners, for putting an end to his reign of terror, and giving hope to the people of Colombia for a better, safer future.
To the people of Colombia: we are committed to seeking the truth about Úsuga David’s crimes and those who helped him, ensuring that they face consequences for those crimes, and recovering ill-gotten gains to return to the victims and their families.
I’d like to give special thanks to the DEA, HSI, NYPD and FBI Agents on this case; and to the United States Marshals Service for taking the lead in ensuring that the defendant is held securely and safely in the district while he awaits trial.
I’d like to extend my deep gratitude to the President of Colombia, the Colombian Attorney General’s Office, the Colombian National Police, the Ministry of National Defense, the Ministry of Justice, and the Ministry of Foreign Affairs. The Republic of Colombia and its law enforcement officers have risked, and too often lost, their lives in the pursuit of this evildoer. And the Colombian people have suffered greatly at the hands of Úsuga David and the CDG. We will honor their sacrifice and honor Colombia’s commitment to combat narco-trafficking by pursuing justice in this case for the victims and their families.
I’d also like to acknowledge the tremendous work by the Justice Department’s Office of International Affairs and the Criminal Division’s Narcotic and Dangerous Drug Section (NDDS) Judicial Attachés in Bogotá, Colombia and DOJ Narcotic and Dangerous Drug Section Special Operations Division Trial Attorneys.
Finally, I’d like to thank the U.S. Attorney’s Offices in the Southern District of Florida, the Middle District of Florida, the Eastern District of Texas, and the Southern District of New York, for collaborating with us in this case. Prosecutors from those offices have demonstrated extraordinary professionalism and dedication by offering their assistance in furtherance of the case here in the Eastern District of New York."
Watch the video of the press conference here.
Líder del Violento "Clan del Golfo" Organización Narcotraficante Mutibillonaria Extraditado de Colombia para Enfrentarse a Una Acusación Formal FederalRead the Press Release
Dairo Antonio Úsuga David, conocido bajo varios aliases incluyendo "Otoniel" fue extraditado esta mañana a los Estados Unidos desde Colombia para enfrentar cargos imputados en el Distrito Este de Nueva York, de ser el líder de una empresa criminal continuada, y de participar en una conspiración internacional en la fabricación y distribución de cocaína dado su posición como jefe de una organización narcotraficante paramilitar y multibillonaria conocida como el "Clan del Golfo" (CDG). El 23 de octubre, 2021, Úsuga David fue capturado en la selva de Colombia después un operativo enorme para su captura por parte de personal de las fuerzas militares, y de orden público de Colombia. Se prevé que el acusado sea instruído formalmente de los cargos imputados en su contra esta tarde ante la Jueza Magistrada Federal Vera M. Scanlon.
“El Departamento de Justicia trabajará incansablemente junto con nuestros socios internacionales para desmantelar las organizaciones narcotraficantes más violentas y extensas y responsabilizar a quienes las dirigen,” dijo el Fiscal General Garland. “Esta extradición es un paso importante para hacer justicia a las comunidades más perjudicadas por el narcotráfico mortal y es parte de nuestros esfuerzos más amplios para proteger a nuestro país de los delitos violentos.”
Según la acusación formal, entre junio de 2003 y octubre de 2021, Úsuga David era el líder de una empresa criminal continuada responsable por exportar cargamentos de cocaína de múltiples toneladas desde Colombia a México y a Centroamérica para su importación final a los Estados Unidos. Además, Úsuga David participó en una conspiración internacional para fabricar y distribuir la cocaína, a sabiendas y con la intención de que las drogas fuesen importadas ilegalmente dentro de los Estados Unidos. Si resultase condenado por todos los cargos imputados en su contra, Úsuga David enfrenta una condena mínima obligatoria de 20 años de encarcelamiento, y un máximo estatutorio de cadena perpetua.
Breon Peace, Fiscal Federal para el Distrito Este de Nueva York, Merrick B. Garland Fiscal General de los Estados Unidos, Anne Milgram, Directora, Agencia Antidrogas de los Estados Unidos, (la DEA), Ricky J. Patel, Agente Especial Encargado en Funciones, Investigaciones de Seguridad Interna del País (HSI), Michael J. Driscoll, Director Adjunto Encargado, Oficina Federal de Investigaciones, Oficina de Nueva York, (FBI), Keechant L. Sewell, Comisaria, Departamento de la Policía de la Ciudad de Nueva York, (NYPD), y Kevin P. Bruen, Superintendente, Policía Estatal de Nueva York (NYSP), anunciaron los cargos imputados en la extradición.
"El acusado era el líder del Clan del Golfo, la organización paramilitar y narcotraficante más poderosa en Colombia durante este siglo, responsable por importar cocaína valorada en múltiples billones de dólares dentro de los Estados Unidos, contribuyendo a la violencia, el consumo y abuso de drogas, y comprometiendo la calidad de vida en cada comunidad impactada por sus envíos de cocaína desde Colombia hasta aquí en el Distrito Este de Nueva York", dijo el Fiscal Federal Peace. "Nos hemos comprometido a buscar la verdad sobre los delitos de Úsuga David y los que le ayudaron, asegurando que ellos enfrenten las consecuencias, y a recuperar sus ganancias ilícitas para devolverlas a las víctimas y a sus familias. No sólo la gente en este país han sido víctimas de Úsuga David y el Clan del Golfo, el pueblo colombiano ha sufrido demasiado por su culpa, han perdido seres queridos desde civiles inocentes a personal de las fuerzas de orden público, confinados como prisioneros dentro de sus casas, y sobrecogidos por el miedo por la violencia en todos lados. Los Estados Unidos sigue comprometido a cooperar con nuestros socios internacionales para desmantelar las organizaciones criminales transnacionales como el Clan del Golfo y frenar la marea de la destrucción causada por su producto letal y sus métodos violentos para llevar a cabo sus negocios.”
El Fiscal Peace ofreció su agradecimiento a las Oficinas de las Fiscalías Federales para el Distrito Sur de Florida, el Distrito Medio de Florida, el Distrito Este de Texas y el Distrito Sur de Nueva York, y la Oficina de Asuntos Internacionales del Departamento de Justicia y la Sección Contra Estupefacientes y Drogas Peligrosas de la División Criminal (NDDS), los Agregados Judiciales en Bogotá, Colombia, Abogados Litigantes de NDDS SOD, el Servicio de los Marshals Federales de los Estados Unidos, el Departamento de la Policía de la Autoridad Portuaria, y al Presidente de Colombia, la Oficina de la Procuraduría General de Colombia, la Policía Nacional de Colombia, el Ministerio de Defensa Nacional de Colombia, el Ministerio de Justicia de Colombia, y el Ministerio de Asuntos Exteriores de Colombia, por su ayuda en la investigación, captura y extradición del acusado.
"Este caso hoy envía un mensaje claro a los líderes de los carteles de drogas en todo el mundo - que la DEA no se detiene ante nada para investigar y desmantelar las redes criminales que amenazan la seguridad y la salud del pueblo americano" declaró la Directora de la DEA Milgram. "La DEA lleva casi 20 años investigando a Otoniel, uno de los narcotraficantes más violentos y prolíficos del mundo. Bajo su liderazgo el Clan del Golfo dejó aterrorizado al pueblo colombiano, y despachó cantidades masivas de cocaína a los Estados Unidos. Felicito a los hombres y a las mujeres de la DEA por sus muchos años de trabajo excepcional que culminó en esta extradición hoy."
“El arresto y extradición de Darío Antonio Usuga David, también conocido como ‘Otoniel’, les envía un mensaje claro a los cabecillas narcotraficantes alrededor del mundo: El orden público de Estados Unidos los rastreará y los llevará ante la justicia, independientemente de las medidas que tomen para evadir captura", dijo el agente especial encargado interino de la Oficina de Investigaciones de Seguridad Nacional, Patel. "Se alega que Otoniel controla el Clan del Golfo (CDG, por sus siglas en inglés), un notorio cartel narcotraficante colombiano responsable de la exportación de envíos de múltiples toneladas de cocaína desde Colombia y la pérdida de un sinnúmero de vidas alrededor del mundo. HSI continúa dedicándose a la desestabilización y desarticulación de organizaciones criminales transnacionales que buscan lucrarse del tráfico ilícito de narcóticos —y la extradición de hoy es un ejemplo de la cooperación inquebrantable entre HSI y nuestros socios del orden público.”
"Úsuga David era el líder de uno de los más poderosos y se puede decir una de las más violentas organizaciones paramilitares en el mundo. Alegamos que su cocaína a menudo acababa a menudo aquí en los barrios en los Estados Unidos. Sin embargo, su suerte cambió el año pasado después de que fue capturado por las fuerzas colombianas militares y de orden público. Úsuga David ahora esta mañana enfrenta su nuevo destino esta vez en el sistema de justicia penal americano, donde será obligado a responder por sus delitos" dijo el Director Adjunto Encargado Driscoll.
"Los cargos imputados hoy afirman el compromiso constante del Departamento de la Policía de la Ciudad de Nueva York de erradicar las drogas ilegales de nuestra ciudad", dijo la Comisaria Sewell. "No importa dónde o cómo este veneno se venda, nosotros estamos unidos con nuestros socios locales, estatales, federales e internacionales para el cumplimiento de las leyes en la lucha contra los narcotraficantes violentos. Teniendo eso presente damos las gracias y felicitamos al Distrito Este de Nueva York, la Administración Federal Antidrogas de los Estados Unidos, las Investigaciones Sobre Seguridad Interna del País, la Oficina Federal de Investigaciones, y a todos los demás involucrados en este caso por su trabajo excepcional."
"Doy la enhorabuena y felicito a nuestros socios por la investigación que llevó a la extradición y acusación formal contra el líder de una organización narcotraficante internacional importante. Este caso subraya nuestro compromiso de perseguir a los miembros de las organizaciones violentas que se enriquecen del tráfico de drogas ilegales, peligrosas, a los Estados Unidos y a otros países por todo el mundo," dijo el NYSP Superintendente Bruen.
El Clan del Golfo
Según los expedientes en la Corte, entre 2012 y hasta su captura por las fuerzas de orden público y militares colombianos el 23 de octubre, 2021, Úsuga David era el líder supremo del CDG.
El CDG es una de las organizaciones criminales más violentas y poderosas en Colombia, y uno de los mayores distribuidores de cocaína en el mundo. Con hasta 6,000 miembros, el CDG ejerce control militar sobre cantidades enormes de territorio en la región de Urabá en Antioquia, Colombia, una de las zonas narcotraficantes que genera más ganancias dentro de Colombia dada su proximidad a la frontera entre Colombia-Panamá y las costas Caribeñas y del Pacífico. Vestidos de uniformes militares, los miembros del CDG emplean tácticas y armas militares para reforzar su poder e incitar las guerras y la violencia contra narcotraficantes rivales, organizaciones paramilitares, y las autoridades de orden público en Colombia que amenazan el control del CDG.
El CDG paga la mayoría de sus operaciones con el narcotráfico. Entre otras cosas, impone un "impuesto" a cualesquiera narcotraficantes que operan en el territorio bajo su control, cobrando tarifas por cada kilogramo de cocaína fabricada, guardada, o transportada a través de áreas controladas por la organización. El CDG también exporta cocaína directamente, y coordina la producción, compra y traslado de cargamentos semanales o quincenales de cocaína desde Colombia a Centroamérica y México para su importación final a los Estados Unidos.
El volumen de las drogas exportadas por el CDG bajo el liderazgo de Úsuga David se muestra con las múltiples incautaciones vinculadas a la organización. Por ejemplo:
- El 12 de abril, 2021, aproximadamente 1,365 kilogramos (aproximadamente 1.5 toneladas) de cocaína fueron incautados de dos barcos fuera de las costas de Panamá:
- El 14 de abril, 2021, aproximadamente 2,609 kilogramos (aproximadamente 2.9 toneladas) de cocaína fueron incautados de una lancha rápida fuera de la costa de Panamá, y
- El 18 de julio, 2021, aproximadamente 5,463 kilogramos (aproximadamente 6 toneladas) de cocaína fueron incautados de un barco dentro de la región selvática en Colombia.
Para mantener control sobre el territorio del CDG, Úsuga David y el CDG empleaba un verdadero ejército de "sicarios" o pistoleros, que llevaban a cabo actos de violencia, incluyendo homicidios, agresiones, secuestros, torturas y asesinatos contra los competidores y los declarados traidores a la organización, además de los miembros de sus familias. Con frecuencia el CDG asesinaba y agredía a oficiales de las fuerzas colombianas de orden público, personal de las fuerzas militares colombianas, narcotraficantes rivales y paramilitares, testigos potenciales, y poblaciones civiles. Úsuga David y el CDG utilizaban la violencia para promover y ampliar el prestigio, la fama y la posición del CDG con respeto a organizaciones criminales rivales: preservar, proteger y aumentar el poder y el territorio del CDG: suministrar fondos para las operaciones del CDG y enriquecer a sus líderes a través del cobro de deudas por drogas: mantener la disciplina entre sus miembros y asociados: y proteger a los miembros del CDG de la captura y procesamiento penal al silenciar a testigos potenciales y tomando represalias contra las autoridades de orden público y contra los que ayudaban a las autoridades.
La capacidad increíble del CDG para la violencia se muestra con las múltiples incautaciones de armas de fuego vinculadas a la organización. Por ejemplo:
- El 24 de enero, 2021, armas vinculadas al CDG fueron incautadas en Medellín, Colombia, incluyendo 15 granadas propulsadas por cohetes, seis fusiles Galil, dos fusiles M4, un fusil AK-47, un fusil Remington, 10 cargadores de fusiles, y más de 1.000 cartuchos de municiones de varios calibres.
- El 30 de enero, 2021, otro alijo de armas vinculadas al CDG fue incautado en Medellín, Colombia, incluyendo cinco fusiles, 10 pistolas, un revólver, un silenciador de pistola, y más de 670 cartuchos de municiones de varios calibres: y
- El 28 de julio, 2021, armas adicionales vinculadas al CDG fueron incautadas en Medellín, Colombia, incluyendo cinco lanzagranadas, 31 fusiles, 10 pistolas semi-automáticas, cinco revólveres, 30 cargadores de fusiles, y 55 cartuchos de municiones de varios calibres.
La Conducta del Acusado
Úsuga David actuó como líder de alto nivel dentro del CDG desde su inicio, y era su líder principal durante los últimos 10 años. Durante su presunto reinado, Úsuga David supervisaba todas las actividades del CDG y daba directrices a sus miembros para participar en múltiples actos criminales, incluyendo actos de violencia, "huelgas" organizadas o cierres de todas las actividades comerciales y movimientos de poblaciones civiles dentro de regiones designadas de Colombia, represalias contra las autoridades de orden público y testigos potenciales, ejercicio de control sobre las instalaciones que fabricaban las drogas, las rutas del narcotráfico, y la exportación de cocaína en cantidades de múltiples toneladas.
Úsuga David asumío el poder y el control territorial sobre territorios enormes de la costa colombiana, y personalmente daba directrices a miembros del CDG para cometer actos de violencia para reforzar ese poder. Esto incluía violencia contra la población civil. Por ejemplo, a principios de 2012, después de la muerte del hermano de Úsuga, Juan de Dios Úsuga David (también conocido como "Giovanni"), en una redada de la Policía, Úsuga David ordenó que un cierre o "huelga" se impusiera sobre los pueblos y las comunidades dentro del control del CDG. Durante la huelga, miembros del CDG dieron órdenes a todos los negocios que se mantuvieran cerrados, y que los residentes se quedasen en sus casas. Durante varios días, las calles seguían vacías, mientras Úsuga David dio órdenes a los miembros del CDG que ejecutasen a aquéllos que no acataban a sus órdenes.
Úsuga David también personalmente dió órdenes a miembros del CDG para cometer asesinatos de individuos específicos en docenas de ocasiones, incluyendo los asesinatos de narcotraficantes rivales y miembros del CDG que le traicionaron a él o a la organización. Por ejemplo, Úsuga David ordenó el asesinato de múltiples individuos que trabajaban para una organización narcotraficante rival, liderada por Daniel Barrera Barrera. Úsuga David también ordenó la tortura y asesinato de un miembro del CDG que dio información a la organización de Barrera. Ese individuo después fue torturado, enterrado vivo, desenterrado y decapitado después de muerto.
Encima de todo eso, Úsuga David solía con frecuencia ordenar a miembros del CDG a emplear la violencia, la intimidación y el asesinato para disuadir a las autoridades de orden público de cumplir con sus cometidos y para silenciar a testigos potenciales. Por ejemplo, bajo órdenes de Úsuga David el CDG llevaba a cabo campañas organizadas, conocidas como el "Plan Pistolas" para asesinar a miembros de las autoridades de orden público y personal militar utilizando armas de calidad militar, para el asesinato de Policías Colombianos y personal militar para intimidar a las autoridades de orden público y así evitar que intentasen capturarle o interferir en los negocios del CDG. La organización de Úsuga David llevó a cabo varios intentos de asesinato de individuos que se creía estaban cooperando con las autoridades. Por ejemplo, miembros del CDG intentaron envenenar a un testigo con cianuro mientras estaba encarcelado en el extranjero, e intentaron asesinar al abogado del testigo.
Úsuga David también estaba muy involucrado en las actividades de drogas que producían los fondos para el CDG y reforzaban su poder. Supuestamente él supervisaba las exportaciones del narcotráfico del CDG y manejaba una red de "cobradores de deudas" cuyo trabajo era asegurar el cumplimiento y cobro de los impuestos pagados por las organizaciones narcotraficantes que operaban en regiones controladas por el CDG. Además, Úsuga David controlaba instalaciones para la fabricación de la cocaína y utilizaba la amplia red de distribución del CDG para exportar la cocaína de manera independiente para su propia ganancia personal.
La Captura y Extradición del Acusado
Durante años, Úsuga David evadía la captura moviéndose periódicamente a través de una red de casas de seguridad rurales y evitando el uso de un teléfono celular, apoyándose en correos humanos para la comunicación. Úsuga David fue capturado el 23 de octubre, 2021, en un escondite rural en la Provincia de Antioquia, Colombia, cerca de la frontera entre Colombia y Panamá, después de un operativo por parte de personal de Colombia militar y de las fuerzas de orden público utilizando 500 soldados y 22 helicópteros.
La extradición de Úsuga David forma parte de una investigación de los Grupos de Trabajo para el Cumplimiento de la Leyes Contra el Crimen Organizado del Narcotráfico (OCDETF). OCDETF identifica, interrumpe y desmantela a los narcotraficantes de alto nivel, los lavadores de dinero, pandillas, y organizaciones criminales transnacionales que son una amenaza para los Estados Unidos, utilizando un enfoque encabezado por Fiscales, apoyado por los servicios de inteligencia, empleando múltiples agencias que aprovechan los puntos fuertes de las agencias de orden público Federales, Estatales y Locales contra las redes criminales.
Los cargos imputados en la Acusación Formal son alegaciones, y el acusado tiene la presunción de inocencia hasta que se demuestre su culpabilidad. Si es condenado, el acusado enfrenta una condena máxima de cadena perpetua.
La causa del Gobierno está en manos de la Sección en la Oficina encargada de Estupefacientes y Lavado de Dinero Internacionales. Los Fiscales Federales Adjuntos Francisco J. Navarro, Gillian A. Kassner, y Tara B. McGrath están encargados del proceso con la ayuda de la Paralegal Especialista Sophia Cronin.
El Acusado:
DAÍRO ANTONIO ÚSUGA DAVID (también conocido como "Otoniel", "Mao", "Gallo", y Mauricio-Gallo")
Edad: 50
Antioquia, ColmbiaE.D.N.Y. Docket No. 14-CR-625 (S-4)(DLI)
Leader of the Violent "Clan del Golfo" Multi-Billion Dollar Drug Trafficking Organization Extradited from Colombia to Face Federal IndictmentRead the Press Release
According to the allegations contained in the superseding indictment, other court fillings, and statements made during court proceedings, Dairo Antonio Úsuga David, known by various aliases including “Otoniel,” 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 manufacturing and distribution conspiracy for his role as the leader of the paramilitary, multibillion dollar drug organization known as the “Clan del Golfo” (CDG). On October 23, 2021, Úsuga David was arrested in the jungles of Colombia following an extensive capture operation by Colombian military and law enforcement personnel. The defendant is scheduled to be arraigned this afternoon before United States Magistrate Judge Vera M. Scanlon.
“The Justice Department will work relentlessly alongside our international partners to disrupt the most violent and extensive drug-trafficking organizations and hold accountable those who run them,” said Attorney General Garland. “This extradition is an important step in delivering justice for the communities most harmed by deadly drug trafficking and is part of our broader efforts to protect our country from violent crime.”
As alleged in court documents, between June 2003 and October 2021, Úsuga David was the leader of a continuing criminal enterprise responsible for exporting multi-ton shipments of cocaine from Colombia to Mexico and Central America for ultimate importation into the United States. Additionally, Úsuga David participated in an international conspiracy to manufacture and distribute cocaine, knowing and intending that the narcotics would be illegally imported into the United States. The charges in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty. If convicted, the defendant faces a maximum sentence of life imprisonment.
Breon Peace, United States Attorney for the Eastern District of New York, Merrick B. Garland, United States Attorney General, Anne Milgram, Administrator, U.S. Drug Enforcement Administration (DEA), Ricky J. Patel, Acting Special Agent-in-Charge, Homeland Security Investigations, New York (HSI), Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), Keechant L. Sewell, Commissioner, New York City Police Department (NYPD), and Kevin P. Bruen, Superintendent, New York State Police (NYSP), announced the extradition and charges.
“As alleged, the defendant was the leader of the Clan del Golfo, the most powerful paramilitary and drug trafficking organization in Colombia this century, responsible for importing multibillion dollars’ worth of cocaine into the United States, fueling violence, drug abuse, and compromised quality of life in every community his cocaine shipments touched, from Colombia to right here in the Eastern District of New York,” stated United States Attorney Peace. “We are committed to seeking the truth about Úsuga David’s crimes and those who helped him, ensuring that they face consequences, and recovering ill-gotten gains to return to the victims and their families. Not only have the people of this country been victimized by Úsuga David and Clan del Golfo, the people of Colombia have suffered too much at his hands, they have lost loved ones from innocent civilians to law enforcement personnel, been kept prisoners inside their homes, and been gripped by fear of violence at every turn. The United States remains committed to cooperating with our international partners to dismantle transnational criminal organizations like the Clan del Golfo and stem the tide of destruction wrought by their lethal product and violent methods of doing business.”
Mr. Peace extended his grateful appreciation to the United States Attorneys’ Offices for the Southern District of Florida, Middle District of Florida, Eastern District of Texas, and Southern District of New York, and the Justice Department’s Office of International Affairs, the Criminal Division’s Narcotic and Dangerous Drug Section (NDDS) Judicial Attachés in Bogotá, Colombia, NDDS SOD Trial Attorneys, the United States Marshals Service, the Port Authority Police Department, and the President of Colombia, the Colombian Attorney General’s Office, the Colombian National Police, the Colombian Ministry of National Defense, the Colombian Ministry of Justice, and the Colombian Ministry of Foreign Affairs, for assistance in the investigation, arrest, and extradition of the defendant.
“Today’s case sends a clear message—to the leaders of drug cartels around the world—that the DEA will stop at nothing to investigate and dismantle criminal drug networks that threaten the safety and health of the American people,” stated DEA Administrator Milgram. “DEA has been investigating Otoniel—one of the most violent and prolific drug traffickers in the world—for almost 20 years. Under his leadership, Clan del Golfo terrorized the Colombian people and shipped massive quantities of cocaine into the United States. I commend the men and women of the DEA for their many years of outstanding work that culminated in today’s extradition.”
“The arrest and extradition of Dairo Antonio Usuga David, also known as ‘Otoniel’ sends a clear message to narco-kingpins around the globe that United States law enforcement will track you down and bring you to justice no matter what lengths are taken to evade capture,” said Homeland Security Investigations Acting Special Agent in Charge Patel. “Otoniel is alleged to control Clan del Golfo (CDG), a notorious Colombian drug cartel responsible for the exportation of multi-ton shipments of cocaine from Colombia and the loss of countless lives around the world. HSI remains dedicated to disrupting and dismantling transnational criminal organizations that seek to profit from trafficking illicit narcotics and today’s extradition exemplifies the unwavering cooperation between HSI and our law enforcement partners.”
“Úsuga David was the leader of one of the most powerful, and arguably one of the most violent, paramilitary organizations in the world. We allege his cocaine often ended up here in our neighborhoods in the United States. However, his fortunes changed last year after he was arrested by the Colombian military and law enforcement. Úsuga David now faces a new fate this morning, in the American criminal justice system, where he will be forced to answer for his crimes,” stated Assistant Director-in-Charge Driscoll.
“Today’s charges further affirm the New York City Police Department’s unwavering commitment to ridding our city of illegal drugs,” stated NYPD Commissioner Sewell. “No matter where or how this poison is peddled, we are united with our local, state, federal, and international law-enforcement partners in the fight against violent drug traffickers. To that end, I thank and commend the Eastern District of New York, the U.S. Drug Enforcement Administration, Homeland Security Investigations, the Federal Bureau of Investigation, the New York State Police, and everyone else involved in this case for their exceptional work.”
“I congratulate and commend our partners for the investigation that led to the extradition and indictment of the leader of a major international drug trafficking organization. This case underscores our commitment to pursuing the members of violent organizations who profit off the trafficking of illegal, dangerous narcotics to the United States and other countries around the world,” stated NYSP Superintendent Bruen.
The Clan Del Golfo
According to court filings, between 2012 and through his capture by Colombian military and law enforcement forces on October 23, 2021, Úsuga David was the supreme leader of the CDG.
The CDG is one of the most violent and most powerful criminal organizations in Colombia, and it is one of the largest distributors of cocaine in the world. With as many as 6,000 members, the CDG exercises military control over vast amounts of territory in the Urabá region of Antioquia, Colombia, one of the most lucrative drug trafficking areas within Colombia due to its proximity to the Colombia-Panama border and the Caribbean and Pacific coasts. Clad in military uniforms, CDG members employ military tactics and weapons to reinforce their power and incite wars and violence against rival drug traffickers, paramilitary organizations, and Colombian law enforcement authorities who threaten the CDG’s control.
The indictment further alleges that the CDG funds its operations primarily through drug trafficking. Among other things, it imposes a “tax” on any drug traffickers operating in territory under its control, charging fees for every kilogram of cocaine manufactured, stored, or transported through areas controlled by the organization. The CDG also directly exports cocaine, and coordinates the production, purchase, and transfer of weekly and bi-weekly multi-ton shipments of cocaine from Colombia into Central America and Mexico for ultimate importation to the United States.
The volume of drugs exported by the CDG under the leadership of Úsuga David is illustrated by multiple drug seizures linked to the organization. For example:
- On April 12, 2021, approximately 1,365 kilograms (approximately 1.5 tons) of cocaine were seized from two boats off the coast of Panama;
- On April 14, 2021, approximately 2,609 kilograms (approximately 2.9 tons) of cocaine were seized from a go-fast boat off of the coast of Panama; and
- On July 18, 2021, approximately 5,463 kilograms (approximately 6 tons) of cocaine were seized from a boat within a jungle region in Colombia.
To maintain control over CDG territory, court filings allege that Úsuga David and the CDG employed a veritable army of “sicarios,” or hitmen, who carried out acts of violence, including murders, assaults, kidnappings, torture, and assassinations against competitors and those deemed traitors to the organization, as well as their family members. The CDG frequently murdered and assaulted Colombian law enforcement officers, Colombian military personnel, rival drug traffickers and paramilitaries, potential witnesses, and civilians. Úsuga David and the CDG used violence to promote and enhance the prestige, reputation, and position of the CDG with respect to rival criminal organizations; preserve, protect, and expand the CDG’s power and territory; finance the CDG’s operations and enrich its leaders through the collection of drug debts; maintain discipline among its members and associates; and protect CDG members from arrest and prosecution by silencing potential witnesses and retaliating against law enforcement authorities and those assisting law enforcement.
The CDG’s staggering capacity for violence is illustrated by multiple weapons seizures linked to the organization. For example:
- On January 24, 2021, weapons linked to the CDG were seized in Medellin, Colombia, including 15 rocket propelled grenades, six Galil rifles, two M4 rifles, one AK-47 rifle, one Remington rifle, 10 rifle magazines, and over 1,000 rounds of various caliber ammunition;
- On January 30, 2021, another cache of weapons linked to the CDG was seized in Medellin, Colombia, including five rifles, 10 handguns, one revolver, one handgun silencer, and more than 670 rounds of various caliber ammunition;
- On July 28, 2021, additional weapons linked to the CDG were seized in Medellin, Colombia, including five grenade launchers, 31 rifles, 10 semiautomatic handguns, five revolvers, 30 rifle magazines, and 55 rounds of various caliber ammunition.
The Defendant’s Conduct
According to court filings, Úsuga David served as a high-ranking leader within the CDG from its inception and was its principal leader for the past 10 years. During his alleged reign, Úsuga David oversaw all of the CDG’s activities and directed its members to engage in extensive criminal acts, including acts of violence, mandated “strikes” or shutdowns of all business activities and civilian movement within designated regions of Colombia, retaliation against law enforcement authorities and potential witnesses, the exertion of control over drug manufacturing facilities and trafficking routes, and the exportation of cocaine in multi-ton quantities.
Court documents allege Úsuga David assumed power and territorial control over vast swaths of the Colombian coastline and personally directed members of the CDG to commit acts of violence to reinforce that power. This included violence against civilians. For example, in early 2012, following the death of Úsuga David’s brother, Juan de Dios Úsuga David (also known as “Giovanni”), in a police raid, Úsuga David ordered that a multi-day shutdown or “strike” be imposed on towns and communities within the CDG’s control. During the strike, CDG members ordered that all businesses remain closed, and that residents stay in their homes. For multiple days, the streets remained empty, as Úsuga David ordered CDG members to execute those who did not adhere to his orders.
Úsuga David also personally ordered CDG members to commit murders of specific individuals on dozens of occasions, including the murders of rival drug traffickers and members of the CDG who betrayed him or the organization. For example, Úsuga David ordered the assassinations of multiple individuals who worked for a rival drug trafficking organization run by Daniel Barrera Barrera. Úsuga David also ordered the torture and murder of a CDG member who provided information to Barrera’s organization. That individual was subsequently tortured, buried alive, exhumed, and beheaded post-mortem.
In addition, Úsuga David regularly directed CDG members to use violence, intimidation, and murder to dissuade law enforcement authorities from performing their duties and to silence potential witnesses. For example, at Úsuga David’s direction, the CDG carried out organized campaigns, referred to as “Plan Pistolas,” to kill Colombian law enforcement and military personnel using military-grade weapons, including grenades, explosives, and assault rifles. Úsuga David also offered bounties for the murder of Colombian police officers and military personnel to intimidate law enforcement authorities and prevent them from capturing him or interfering in the CDG’s business. Úsuga David’s organization made numerous attempts to assassinate individuals who were believed to be cooperating with law enforcement. For example, CDG members attempted to poison a witness with cyanide while he was imprisoned overseas and attempted to assassinate the witness’s attorney.
Úsuga David was also extensively involved in the narcotics activities that funded the CDG and enabled its power. He allegedly oversaw the CDG’s drug trafficking exports and directed a network of “debt collectors” tasked with the enforcement and collection of taxes paid by drug trafficking organizations that operated in regions controlled by the CDG. In addition, Úsuga David controlled cocaine manufacturing facilities and used the CDG’s extensive distribution network to export cocaine independently for his own personal profit.
The Defendant’s Arrest and Extradition
According to court documents, for years, Úsuga David evaded capture by periodically moving through a network of rural safe houses and refraining from using a cell phone, instead relying on couriers for communication. Úsuga David was arrested on October 23, 2021, in a rural hideout in Antioquia province, Colombia, near the Colombia-Panama border, following an operation by Colombian military and law enforcement personnel involving 500 soldiers and 22 helicopters.
The extradition of Úsuga David is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
The charges in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty. If convicted, the defendant faces a maximum sentence of life imprisonment.
The government’s case is being handled by the Office’s International Narcotics and Money Laundering Section. Assistant United States Attorneys Francisco J. Navarro, Gillian A. Kassner, and Tara B. McGrath are in charge of the prosecution with assistance from Paralegal Specialist Sophia Cronin.
The Defendant:
Dairo Antonio Úsuga David (also known as “Otoniel,” “Mao,” “Gallo” and “Mauricio-Gallo”)
Age: 50
Antioquia, ColombiaE.D.N.Y. Docket No. 14-CR-625 (S-4) (DLI)
Defendant Pleads Guilty to Attempted Armed Robbery of a Federal Officer in BrooklynRead the Press Release
Earlier today, in federal court in Brooklyn, John Shortt pleaded guilty before United States District Judge Eric Komitee to assault of a federal police officer and possessing and brandishing a firearm during a crime of violence in connection with the attempted robbery of a federal officer outside a nightclub in Brooklyn. When sentenced, Shortt faces up to 27 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.
“With today’s guilty plea, John Shortt is held responsible for causing a wild shoot-out on a public street that resulted in one death, seriously wounded three victims including a federal officer who was targeted by the defendant for a robbery, and endangered numerous other persons,” stated United States Attorney Peace. “This Office and our law enforcement partners are working tirelessly to reduce gun-related violence in the district and we will vigorously prosecute criminals like the defendant who use illegal firearms with complete disregard for the consequences of their actions.” Mr. Peace thanked the New York City Police Department for its assistance with the case.
According to court documents, on September 18, 2021, Shortt and an accomplice, Isiah Greenaway, attempted to rob a United States Park Police Officer and another individual at gunpoint outside a nightclub located at 1440 Utica Avenue in Brooklyn. The officer drew his weapon and announced himself as a police officer to protect himself and prevent a felony in-progress. The attempted robbery led to a shoot-out in which the officer and two other individuals were seriously wounded, and another man was killed. Shortt was also shot by the officer. Greenaway is charged with assault of a federal police officer and possessing and brandishing a firearm during a crime of violence. Greenaway’s case is pending and he is 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 Nick M. Axelrod and Sophia M. Suarez are in charge of the prosecution.
The Defendant:
JOHN SHORTT
Age: 28
Brooklyn, New YorkE.D.N.Y. Docket No. 22-CR-7 (EK)
Declaración del Fiscal Federal Breon Peace sobre United States V. Úsuga DavidRead the Press Release
“Buena tarde, soy Breon Peace, el Fiscal de los Estados Unidos del Distrito Este de Nueva York. Gracias a todos por estar aquí esta tarde en persona y en línea.
Hoy me acompañan: Anne Milgram, Administrador de la Administración para el Control de Drogas, Ricky J. Patel, Agente Especial Encargado en funciones, desde la oficina del FBI en Nueva York, tenemos a Michael Driscoll, director Adjunto a cargo, de la policía de Nueva York tenemos al Capitán Thomas Kelly, comandante de la Fuerza de Tarea contra la Droga, el jefe de los Alguaciles Vincent DeMarco del Servicio de Alguaciles de los Estados Unidos, el Capitán Captain Michael Sumnick de la Policía del Estado de Nueva York; y mi equipo de la Oficina del Fiscal de los Estados Unidos, los AUSA Gillian A. Kassner y Tara B. McGrath y la asistente legal Sophia Cronin.
Estamos hoy aquí para anunciar la extradición desde Colombia de uno de los capos de la droga más peligrosos y buscados del mundo, Dairo Antonio Úsuga David (también conocido como "Otoniel"), para quien el asesinato era insignificante, y la violencia la mejor divisa.
Durante la última década, Úsuga David ha sido el principal líder del Clan del Golfo, o CDG, el cartel paramilitar y de narcotráfico más poderoso de Colombia. Es responsable del tráfico de cantidades enorme de cocaína -medidas en toneladas, no en libras o kilogramos; de obtener masivos beneficios, medidos en miles de millones, no en millones- y de supervisar un ejército de secuaces que asesinaron, secuestraron y torturaron a víctimas -incluidos agentes de la ley y militares colombianos- para mantener el control del cartel y de las regiones en las que opera.
Sus órdenes directas a sus miles de secuaces ataviados con ropa militar enviaron un efecto dominó de drogas, muerte y destrucción a todas las comunidades que tocaban sus cargamentos de cocaína, desde Colombia hasta aquí mismo, en el Distrito Este de Nueva York.
Hoy se enfrentará por fin a la justicia en un tribunal federal de Brooklyn por cargos que se basan en su papel como líder supremo del cártel.
Úsuga David está acusado en una imputación sustitutiva de tres cargos de dirigir una empresa criminal continua desde junio de 2003 hasta octubre de 2021 y de participar en una conspiración internacional para fabricar y distribuir cocaína, a sabiendas y con la intención de que los estupefacientes fueran importados ilegalmente a los Estados Unidos.
Estos son los cargos, y los detalles sobre Usuga David y su letal organización son escalofriantes. El CDG es uno de los mayores distribuidores de cocaína del mundo.
También conocidos como "Los Urabeños" o "Clan Úsuga", tienen su sede en la región del Urabá antioqueño, en Colombia, y cuentan con un ejército de miles de miembros (en su punto álgido, unos 6.000). Para ponerlo en perspectiva, tenía más empleados que los departamentos de policía de Boston y Miami juntos.
En la pantalla hay un mapa de Colombia y un corredor de países que en última instancia conducen a Estados Unidos. En rojo, se puede ver el extenso territorio bajo control del CDG, gran parte del cual consistía en costas. Dentro del territorio bajo control del CDG, se puede ver la región de Antioquia, que servía de base al CDG. Se puede ver el Golfo de Urabá y tres importantes ciudades portuarias a lo largo del Océano Pacífico a la izquierda y el Mar Caribe a la derecha. Se puede ver que el territorio del CDG está en la parte noroeste del país, más cerca de Estados Unidos, y que estas ciudades portuarias proporcionaban acceso directo a las vías navegables desde las que podían partir los barcos. Y por las líneas azules punteadas, se pueden ver algunas de las rutas de exportación de cocaína que parten de estas zonas y que el CDG utilizaba para el contrabando de drogas hacia Estados Unidos.
El cartel de Úsuga David importaba cantidades exorbitantes de cocaína a Estados Unidos. En la acusación se imputan más de 40 casos -40- en los que su cártel exportó una tonelada o más de cocaína desde Colombia. El CDG exporta y coordina la producción, la compra y el traslado de cargamentos semanales de varias toneladas de cocaína desde Colombia a Centroamérica y México para su importación final a Estados Unidos.
Las autoridades policiales han interceptado algunos de estos envíos, incluidas más de 10 toneladas de cocaína incautadas en barcos frente a la costa de Panamá y en una región selvática de Colombia.
Como líder de alto rango dentro del CDG desde su creación y su director general durante la última década, Úsuga David dirigió a su ejército para que cometiera actos brutales de violencia, terror y represalias; para ejercer el control sobre vastas regiones territoriales de Colombia y su población; y para exportar cantidades abrumadoras de cocaína con destino a Estados Unidos. Todo ello fue enormemente lucrativo y le reportó a Úsuga David y a su cártel miles de millones de dólares en concepto de ingresos procedentes de la droga.
Estas drogas ilícitas, que fueron enviados a los Estados Unidos, causaron adicción, violencia y muerte, y deterioran trágicamente la calidad de vida de los residentes de las comunidades afectadas, incluidas muchas del área metropolitana de Nueva York, y del país en general. Las actividades de tráfico de drogas del CDG financiaron y permitieron el ascenso al poder de Úsuga David. El CDG ha utilizado tácticas militares y armas para controlar la región más lucrativa del tráfico de cocaína dentro de Colombia. La organización paramilitar de Úsuga David tiene miles de soldados, incluidos los "sicarios", que asesinaban, asaltaban, secuestraban, torturaban y asesinaban bajo la dirección de Úsuga David y el CDG imponer un "impuesto" a cualquier narcotraficante que opere en su territorio, cobrando tasas por cada kilogramo de cocaína fabricado, almacenado o transportado a través de la región.
La violencia de Úsuga David incluyó demostraciones públicas de su poder y la represión de civiles inocentes. Impuso cierres obligatorios o "huelgas", una especie de ley marcial en la que ordenó que todos los negocios en el territorio controlado por el CDG permanecieran cerrados y que los ciudadanos colombianos de esas regiones se quedaran en casa. Él ordenó a los soldados del CDG que ejecutaran a cualquiera que desobedeciera las normas de los cierres.
Bajo la dirección de Úsuga David, el CDG también llevó a cabo campañas organizadas (a las que llamaron "Plan Pistola") para matar a personal de las fuerzas públicas y del ejército colombiano utilizando armas de uso militar, como granadas, explosivos y fusiles de asalto, y para asesinar a personas que se creía que cooperaban con las fuerzas del orden. En numerosas ocasiones, Úsuga David ordenó personalmente el asesinato y la tortura de personas consideradas enemigas del CDG.
Durante años, Úsuga David evadió su captura moviéndose a través de una red de casas rurales seguras en las selvas de Colombia y evitando la tecnología moderna, viviendo por fuera del entorno visible. Al mismo tiempo, con un ejército de despiadados sicarios a sus órdenes, Úsuga David pudo ampliar el territorio y el poder del CDG y creer que era esencialmente intocable. Hasta ahora.
La captura de Úsuga David fue el resultado de una amplia campaña conjunta de la Policía Nacional de Colombia, la Fuerza Aérea Colombiana y el Ejército Nacional de Colombia que comenzó en 2016. Antes de la detención de Úsuga David, el gobierno colombiano ofreció una recompensa de 800.000 dólares por información sobre su paradero y Estados Unidos ofreció una recompensa de 5 millones de dólares por información que condujera a su arresto. Úsuga David fue finalmente capturado el 23 de octubre de 2021 en un escondite rural en una provincia de Antioquia, Colombia, cerca de la frontera entre Colombia y Panamá, tras una operación en la que participaron 500 soldados y 22 helicópteros. El presidente de Colombia, Iván Duque, describió la operación como "la mayor penetración en la selva jamás vista en la historia militar de nuestro país."
Un caso como éste requiere un ejército propio, y agradezco el trabajo de mi oficina y de nuestros socios, por poner fin a su reinado de terror, y dar esperanza al pueblo de Colombia de un futuro mejor y más seguro.
Al pueblo de Colombia: nos comprometemos a buscar la verdad sobre los crímenes de Úsuga David y de quienes le ayudaron, a garantizar que se enfrenten a las consecuencias de esos crímenes y a recuperar las ganancias mal habidas para devolvérselas a las víctimas y a sus familias.
Me gustaría dar las gracias especialmente a los agentes de la DEA, el HSI, la policía de Nueva York y el FBI en este caso, y al Servicio de Alguaciles de los Estados Unidos por haber tomado la iniciativa de garantizar que el acusado esté retenido de forma segura en el distrito mientras espera el juicio.
Quisiera expresar mi profunda gratitud al presidente de Colombia, a la Fiscalía General de la Nación, a la Policía Nacional de Colombia, al Ministerio de Defensa Nacional, al Ministerio de Justicia y al Ministerio de Relaciones Exteriores. La República de Colombia y sus funcionarios encargados de hacer cumplir la ley han arriesgado, y con frecuencia han perdido, sus vidas en la persecución de este malhechor. Y el pueblo colombiano ha sufrido mucho a manos de Úsuga David y del CDG. Honraremos su sacrificio y honraremos el compromiso de Colombia de luchar contra el narcotráfico haciendo justicia en este caso para las víctimas y sus familias.
También me gustaría reconocer el enorme trabajo realizado por la Oficina de Asuntos Internacionales del Departamento de Justicia y los Agregados Judiciales de la Sección de Estupefacientes y Drogas Peligrosas (NDDS) de la División Penal en Bogotá, Colombia y los Abogados Litigantes de NDDS SOD.
Por último, me gustaría agradecer a las Fiscalías del Distrito Sur de Florida, del Distrito Medio de Florida, del Distrito Este de Texas y del Distrito Sur de Nueva York, por colaborar con nosotros en este caso. Los fiscales de esas oficinas han demostrado un extraordinario profesionalismo y dedicación al ofrecer su ayuda en la promoción del caso aquí en el Distrito Este de Nueva York.”
El video de la declaración esta aquí.
Former Brooklyn Resident Pleads Guilty to $3 Million Tax Return and Covid-Relief Fraud SchemesRead the Press Release
Earlier today, in federal court in Brooklyn, Patrick Poux pleaded guilty to filing false applications for hundreds of thousands of dollars in COVID-19 emergency relief loans in 2020 under the Paycheck Protection Program (PPP) and Economic Injury Disaster Loan Program (EIDL). Poux also pleaded guilty to fraudulently generating and submitting false tax return applications claiming millions of dollars in unearned tax refunds between 2016 and 2019. Today’s proceeding was held before United States Magistrate Judge Robert M. Levy. When sentenced, Poux faces up to 30 years in prison and a fine of up to $1 million.
Breon Peace, United States Attorney for the Eastern District of New York, and Thomas Fattorusso, Special Agent-in-Charge, Internal Revenue Service-Criminal Investigation, New York (IRS-CI), announced the guilty plea.
“It was money not well earned, or well spent. The defendant admitted to preparing and filing false applications for millions of dollars’ worth of COVID-19 disaster relief funds and tax refunds and then spending that money on a life coach and luxury goods,” stated United States Attorney Peace. “This Office will vigorously prosecute individuals who steal taxpayer dollars, especially from critically important government programs designed to help struggling small businesses and families stay afloat during the pandemic.”
“Patrick Poux orchestrated an elaborate scheme to create false W-2 forms with excessively high federal withholdings, attempting to gain millions by using shell companies he controlled to get fraudulent tax refunds for him and his co-conspirators. Poux’s fraud went on to include COVID-19 loan applications for companies that had no operations or employees,” said Special Agent in Charge Fattorusso. “Poux lived a rich lifestyle filled with luxury goods while stealing hundreds of thousands of dollars from those who need the funds for their businesses to thrive. U.S. taxpayers have paid the bill for his lavish purchases for far too long, and today’s guilty plea ensures that Poux will soon pay it back by facing the consequences of his actions.”
The CARES Act was 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 certain 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.
Similarly, the EIDL program was a program that provided low-interest financing to small businesses, renters and homeowners in regions affected by declared disasters. The CARES Act authorized the SBA to provide EIDLs of up to $2,000,000 to eligible small businesses experiencing substantial financial disruption due to the COVID-19 pandemic.
As set forth in court filings, between March 2020 and September 2020, amid the COVID-19 pandemic, Poux fraudulently applied for PPP and EIDL loans and grants totaling approximately $320,000, on behalf of himself and corporate entities he controlled. Poux received approximately $183,000 in COVID-19 relief loans and grants to which he was not entitled, and he spent those funds on personal expenses, including a life coach and luxury goods from stores such as Saks Fifth Avenue.
As also set forth in court filings, between 2016 and 2019, Poux and others used false wage and withholding information in income tax returns to obtain tax refunds to which they were not entitled. To advance the scheme, Poux created false tax forms for shell companies that had no operations or employees. He gave co-conspirators tax forms that falsely reported that the co-conspirator had worked at a shell company and had withheld income—even though the co-conspirator never worked at the shell company. Using these falsified forms, co-conspirators could claim substantial refunds from the United States Internal Revenue Service (IRS). In return, Poux received a percentage of such refunds. Poux and others submitted approximately 250 claims seeking a total of approximately $2.8 million in tax refunds from the IRS.
The government’s case is being handled by the Office’s General Crimes Section. Assistant United States Attorney Adam Amir is in charge of the prosecution.
The Defendant:
PATRICK POUX
Age: 45
Snellville, GAE.D.N.Y. Docket No. 22-CR-117 (BMC)
Two Lebanese Citizens Extradited from Republic of Georgia to Face International Money Laundering ChargesRead the Press Release
Mohamad Yassine and Hassan Rahman, citizens of Lebanon, will be arraigned today on money laundering charges for operating an international money laundering organization. Yassine and Rahman were arrested in September 2021 in Georgia and extradited to the United States on April 30, 2022. The defendants are scheduled to be arraigned this afternoon before United States Magistrate Judge Sanket J. Bulsara at the federal courthouse in Brooklyn.
Breon Peace, United States Attorney for the Eastern District of New York and Susan A. Gibson, Special Agent-in-Charge, Drug Enforcement Administration (DEA), New Jersey Division announced the extraditions.
“The defendants operated a sophisticated money laundering conspiracy that used the international banking system to move bulk cash by sending wire transfers for criminals throughout the world,” stated United States Attorney Peace. “This Office is committed to working with our international partners to dismantle the money laundering networks upon which drug traffickers and other criminals rely.”
Mr. Peace thanked the Georgian Ministry of Justice, the Prosecutor’s Office of Georgia, the Georgian Ministry of Internal Affairs, the DEA’s Country Attaché Office in Georgia, and the Justice Department’s Office of International Affairs for their assistance with the arrest and extradition.
“Drug traffickers rely on international money laundering organizations in order to further their criminal operations,” stated Special Agent in Charge Gibson. “The defendants in this investigation have helped to fuel the misery felt by so many affected by illegal drug use. The men and women of DEA will continue to work with our international partners to ensure these criminals are brought to justice.”
According to court filings, between approximately June 2017 and March 2018, Yassine and Rahman participated in a sophisticated Lebanon-based money laundering organization. Yassine led the organization, and Rahman was a member who reported directly to Yassine. The organization collected, laundered, and repatriated illicit funds, including drug proceeds, throughout Europe, the Middle East, South America, Australia, and the United States, in exchange for a percentage-based commission of the amount laundered. The organization typically charged a double-digit commission, as high as 17%. The organization used a network of workers to pick up and deliver bundles of cash, and it used the banking system to launder money through wire transfers. Some of the funds the defendants laundered originated in Australia, were sent to Turkey, and ultimately transferred into a bank account in Brooklyn.
The charges in the superseding indictment are merely allegations, and the defendants are presumed innocent unless and until proven guilty. If convicted, the defendants face up to 40 years in prison.
The government’s case is being handled by the Office’s International Narcotics and Money Laundering Section. Assistant United States Attorneys Francisco J. Navarro, Jonathan P. Lax, Nomi D. Berenson and Tara B. McGrath are in charge of the prosecution.
The Defendants:
MOHAMAD YASSINE
Age: 51
Majdel Anjar, LebanonHASSAN RAHMAN
Age: 38
Majdel Anjar, LebanonE.D.N.Y. Docket No. 18-CR-137 (S-1) (EK)
Owner of Pharmacies in Brooklyn and Queens Pleads Guilty in Health Care Fraud and Kickback SchemeRead the Press Release
BROOKLYN, NY – Earlier today, in federal court in Brooklyn, Robert John Sabet, the owner of Brooklyn Chemists in Gravesend, Brooklyn, and Lucky Care Pharmacy in Flushing, Queens, pleaded guilty before United States Magistrate Judge Vera M. Scanlon to conspiracy to commit health care fraud and unlawfully spending the proceeds of his $6.8 million fraud. When sentenced, Sabet faces up to 10 years in prison.
Kenneth A. Polite, Jr., Assistant Attorney General of the Justice Department’s Criminal Division; 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 Inspector General, New York Regional Office (HHS-OIG); Thomas Fattorusso, Special Agent-in-Charge, Internal Revenue Service Criminal Investigation, New York (IRS-CI); and Frank T. Walsh, Jr., Acting Medicaid Inspector General, New York State Office of the Medicaid Inspector General (OMIG), announced the guilty plea.
According to court documents, Sabet conspired to bill Medicare and Medicaid for expensive prescription drugs that were not eligible for reimbursement because they were not needed or not dispensed, and because they were dispensed in connection with kickbacks. As part of the conspiracy, Sabet and others paid kickbacks and bribes to customers to convince them to fill prescriptions at his pharmacies, and paid customers cash in exchange for the ability to bill Medicare and Medicaid for over-the-counter health care-related products on their behalf. Sabet used proceeds of the scheme to purchase luxury goods and a 2020 Porsche Taycan worth over $250,000.
The case is being prosecuted by Trial Attorney Miriam L. Glaser Dauermann of the Justice Department’s Fraud Section. Assistant United States Attorney Brendan King of the Eastern District of New York’s Asset Recovery Section, is handling forfeiture matters. The case was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Eastern District of New York.
The Defendant:
ROBERT JOHN SABET
Age: 46
Brooklyn, New YorkE.D.N.Y. Docket No.: 21-CR-140 (EK)
Urgent Care Doctor and his Facilities Settle Allegations of Federal Health Care FraudRead the Press Release
Breon Peace, United States Attorney for the Eastern District of New York, announced today that Dr. Josef Schenker and two urgent care facilities owned by him, Josef Schenker, M.D., P.C., and Care Partners Medical Management, LLC, have agreed to pay $564,217.70 to resolve allegations that they submitted false claims to Medicare for services not provided in administering COVID-19 vaccines and tests.
“In billing for medical services that were not provided to patients receiving COVID-19 vaccines and tests, Dr. Schenker exploited the pandemic for his own personal benefit,” stated United States Attorney Breon Peace. “This Office is committed to combatting fraud and abuse of our taxpayer-funded programs.”
This resolution follows the Department’s recent announcement of a nationwide coordinated law enforcement action to combat health care- related Covid-19 fraud.
When health care providers bill Medicare for COVID-19 tests and vaccines, they use certain Current Procedural Terminology (CPT) codes that specify the services that have been provided. In doing so, they signify that the services were performed as described and properly billed in accordance with industry standards. Applicable industry standards preclude physicians from billing for mid-level or high-level evaluation and management office visits when a Medicare beneficiary actually receives only a COVID-19 vaccine or test.
An investigation by the United States Attorney’s Office for the Eastern District of New York revealed that, from July 2020 to December 2021, Dr. Schenker routinely used CPT codes which falsely indicated to Medicare that he had conducted detailed examinations of the patients during mid-level and high-level evaluation and management office visits when, in fact, he had provided only a COVID-19 vaccine or test. The settlement resolves potential claims that Dr. Schenker’s alleged conduct violated the False Claims Act, 31 U.S.C. §§ 3729-33. The claims resolved by the settlement are allegations only.
The United States’ case was handled by Assistant U.S. Attorney Ekta Dharia of the Office’s Civil Division with assistance from Civil Investigator Joseph Giambalvo.
Defendant Convicted of Defrauding American Express of More Than $4.7 MillionRead the Press Release
BROOKLYN, NY – Earlier today, in federal court in Brooklyn, a federal jury convicted Jasminder Singh of bank fraud and money laundering based on defrauding American Express of more than $4.7 million in charges for iPhone purchases and spending the fraud proceeds on a $1.3 million home and other luxury items. Singh was convicted of bank fraud and unlawful monetary transactions. The verdict followed a one-week trial before United States District Judge Carol Bagley Amon.
Breon Peace, United States Attorney for the Eastern District of New York, Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, and Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the verdict.
“The jury determined that Singh was a fraudster who used American Express cards to purchase thousands of iPhones, racking up millions of dollars in charges and then spun a web of lies to avoid paying the bill and hide his ill-gotten assets,” stated United States Attorney Peace. “After stiffing American Express, the defendant was living large, until today, when the bill for his crimes came due with today’s verdict.”
As proven at trial, Singh used four business entities that he created and controlled and 10 American Express credit cards in those entities’ names to purchase thousands of Apple iPhones that he then sold overseas for millions of dollars. Between November 2017 and December 2019, the defendant misrepresented to American Express his inability to repay more than $4.7 million in charges incurred from his purchase of iPhones in order to secure additional credit, and used a series of financial transactions to conceal the money he obtained from selling the purchased iPhones. The defendant used the proceeds from his fraudulent scheme to pay for personal expenses and purchase luxury items, including a $1.3 million home in cash in Fremont, California. The defendant made most of the purchases at Apple stores in Oregon and Washington.The evidence at trial included financial and phone records, audio recordings, testimony from the defendant’s co-conspirator Mandeep Singh, and an FBI forensic accountant. Mandeep Singh pleaded guilty to money laundering conspiracy in March 2022 and is awaiting sentencing.
Assistant United States Attorney Michael Gibaldi of the Eastern District of New York and Trial Attorney Patrick J. Campbell of the Criminal Division’s Fraud Section are prosecuting the case with the assistance of paralegal Eleanor Fitzgerald.
Defendant:
JASMINDER SINGH
Age: 45
Fremont, CaliforniaE.D.N.Y. Docket No.: 21-CR-397 (CBA)
Members of Brooklyn-Based "Bamalife" Gang Charged with Racketeering and Multiple Gang-Related ShootingsRead the Press Release
A 35-count, second superseding indictment was unsealed today in federal court in Brooklyn charging Darrius Sutton, also known as “Blizz Meecho,” Trava Selby, also known as “Stoney,” Andrew Simpson, also known was “Drewski,” Tyshawn Sumpter, also known as “GT,” Ronnie Warren, also known as “Bossman Horse,” and Corey Williams, also known as “Moncler Mellz,” with racketeering conspiracy, violent crimes in-aid-of racketeering—including attempted murder and murder conspiracy—firearms offenses, drug-dealing and fraud. As alleged in the indictment, the defendants were members and associates of a violent East New York gang called “Bamalife,” which has ongoing and violent rivalries with other gangs in East New York and elsewhere in Brooklyn. Simpson and Warren were arrested earlier today and will be arraigned this afternoon before United States Magistrate Judge Sanket J. Bulsara. Selby, who is presently in New York State custody, and Sutton, Sumpter and Williams who are already in federal custody on related charges, will be arraigned at a later date. During Simpson’s arrest in Edison, New Jersey, members of law enforcement recovered a Glock handgun with an extended ammunition clip from the defendant’s pants.
Breon Peace, United States Attorney for the Eastern District of New York, Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), Jonathan Mellone, Special Agent-in-Charge, U.S. Department of Labor, Office of Inspector General, New York Region (DOL-OIG), and Keechant L. Sewell, Commissioner, New York City Police Department (NYPD), announced the arrests and charges.
“As alleged in the superseding indictment, the defendants wreaked havoc in East New York and nearby neighborhoods, with innocent bystanders caught in the crossfire as members of Bamalife carried out senseless violence directed against rival gangs,” stated United States Attorney Peace. “This Office, together with our law enforcement partners, are working tirelessly to protect our communities by dismantling criminal enterprises that are engines of a broad range of crimes, taking the violent gang members off the street and stopping the cycle of gun-related violence.”
“Gang members and their rivals aren’t the only ones affected by the hostility they inflict upon themselves. In this case specifically, as we allege, the defendants’ activity threatened the safety and security of the residents of East New York, who deserve to walk their streets without the fear of violence. Today’s charges should send a message that the FBI remains committed to strengthening our communities by eliminating this type of illegal activity.” stated FBI Assistant Director-in-Charge Driscoll.
“The Unemployment Insurance Program exists to provide needed assistance to qualified individuals who are unemployed due to no fault of their own. Fraud against the Unemployment Insurance Program distracts state workforce agencies from ensuring benefits go to individuals who are eligible to receive them. The Office of Inspector General will continue to work closely with our many law enforcement partners to investigate those who exploit the Unemployment Insurance Program,” stated DOL-OIG Special Agent-in-Charge Mellone.
“Today’s charges further illustrate our unwavering commitment to dismantling violent gangs while taking illegal guns off our streets,” said NYPD Commissioner Sewell. “We use every resource available to keep our neighborhoods safe, and any person who puts New Yorkers at risk must be held accountable to the fullest extent of the law. I want to thank the U.S. Attorney’s Office for the Eastern District of New York, the FBI’s New York Field Office, the Office of the Inspector General’s New York Regional Office, and all the investigators involved in this important case.”
As alleged in the indictment and other court filings, the defendants are charged in connection with six non-fatal shootings in East New York and elsewhere in Brooklyn that wounded 12 individuals. Also as alleged in the indictment, the defendants financed their violent shooting spree through drug-dealing and various forms of fraud, including bank fraud and unemployment benefits fraud.
The August 11, 2019 Shooting
As alleged, on August 11, 2019, Sutton accosted a member of a rival gang after a party in East New York. Sutton demanded to know if the victim was a member of the rival gang and then began shooting and pursuing the intended victim as the victim attempted to flee. Sutton struck and seriously injured his intended target and also struck an innocent bystander in the leg.
The April 20, 2020 Shooting
As alleged, on April 20, 2020, Sutton ambushed a male victim in the vicinity of 375 Sheffield Avenue in East New York, Brooklyn. Surveillance video shows Sutton approaching the victim undetected from behind, drawing his weapon, firing several shots and striking the victim in the chest, thigh and wrist before fleeing the scene. Following Sutton’s arrest on federal charges for this shooting, Warren took images of Sutton shooting his victim that were part of a court filing and posted them to Instagram with the message: “MY BOY GREAT.”
The May 16, 2020 Shooting
As alleged, on May 16, 2020, Sutton and Sumpter, together with others, shot and seriously injured a member of a rival gang in the vicinity of 2211 Pitkin Avenue in East New York, Brooklyn. Surveillance video of the shooting shows two cars pulling up to a location approximately four blocks from the shooting. Sutton exited one of the cars and approached 2211 Pitkin Avenue, where members of a rival gang are known to congregate, while Sumpter and other coconspirators waited in the vehicle. Surveillance video from inside the building shows Sutton in the lobby holding a firearm. Moments later, Sutton shot the rival in the courtyard of 2211 Pitkin Avenue, ran back to the waiting vehicles, and fled the scene.
The July 14, 2020 Shooting
As alleged in the indictment, on July 14, 2020, Sutton, Sumpter, and others opened fire on a member of a rival gang member in the vicinity of 620 Vermont Avenue in East New York. Video surveillance footage of the shooting shows Sutton, Sumpter and others arrive at the scene in two cars. Sutton and Sumpter exited one of the vehicles and began shooting, striking the rival gang member and seriously injuring him. Sutton, Sumpter, and several other individuals then ran back to the waiting vehicles, which sped off.
The February 6, 2021 Shooting
As alleged in the indictment, on February 6, 2021, Sumpter shot at a group of individuals outside a six-year old’s birthday party in the vicinity of 1093 Putnam Avenue in Brooklyn, after a member of Bamalife had an altercation with those individuals at the party. Video surveillance footage shows Sumpter outside the entrance to the party as guests, including young children, were leaving. The surveillance footage shows a group of individuals running from the scene and shows Sumpter chasing after them while firing several shots. Following the shooting, Sumpter fled in a waiting vehicle.
The August 16, 2021 Shooting
As alleged in the indictment, on August 16, 2021, Simpson and at least two accomplices shot into a crowd outside of 927 Dekalb Avenue in Brooklyn, striking eight individuals. Video surveillance of the incident shows Simpson and his accomplices double-park near the scene of the shooting, after which two of the conspirators approached the large crowd gathered in the courtyard and began firing. The shooters returned to the waiting vehicle and sped off.
Murder Conspiracies
As alleged in the indictment, from 2014 to the present, Sutton, Simpson, Sumpter and Williams conspired to murder members and associates of another East New York-based gang and beginning in 2016, Sutton, Selby, Simpson, Warren and Williams conspired to murder John Doe 1, in part in retaliation for an incident in which Warren was shot. In the course of the conspiracy, Warren released a rap song and accompanying video in which Warren and other members of Bamalife can be heard shouting that John Doe 1 and his girlfriend are “going to die together.”
Bank Fraud and other Fraudulent Schemes
As alleged in the indictment, members of Bamalife earned money through illicit means, including various fraud schemes. As alleged, in June 2019, Warren and Williams engaged in a scheme to create and deposit fraudulent checks drawn on bank accounts of unwitting victims. Warren and Williams used information from victims’ bank accounts to create fraudulent checks, which they deposited into the account of co-conspirators in order to obtain funds. Williams bragged on social media about the proceeds of his fraud schemes. For example, on July 9, 2021, he posted the following to his Instagram account with the username “darealmonclermellz”: “I just spent 80k last week like it was nothing.”
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
The charges in the indictments are allegations, and the defendants are presumed innocent unless and until proven guilty.
The government’s case is being handled by the Office’s Organized Crime and Gangs Section. Assistant United States Attorneys Kevin Trowel and Nick M. Axelrod are in charge of the prosecution.
The Defendants:
DARRIUS SUTTON (also known as “Blizz Meecho”)
Age: 24
Brooklyn, New YorkTRAVA SELBY (also known as “Stoney”)
Age: 27
Brooklyn, New YorkANDREW SIMPSON (also known as “Drewski”)
Age: 24
Brooklyn, New YorkTYSHAWN SUMPTER (also known as “GT”)
Age: 28
Brooklyn, New YorkRonnie warren (also known as “Bossman Horse”)
Age: 25
Hoboken, New JerseyCorey williams (also known as “Moncler Mellz”)
Age: 27
Rembert, South CarolinaE.D.N.Y. Docket No. 20-CR-323 (S-2) (AMD)
Defendant Sentenced to 30 Years in Prison for Distributing Narcotics that Caused Multiple Fatal OverdosesRead the Press Release
Earlier today, at the federal court in Brooklyn, Angelina Barini was sentenced by United States District Judge Brian M. Cogan to 30 years’ imprisonment for distributing narcotics and causing the deaths of multiple victims. In August 2021, Barini pleaded guilty to two counts of distributing narcotics that caused the deaths of a person; one count of distributing fentanyl, methamphetamine, and cocaine; and one count of conspiring to distribute gamma-butyrolactone (GBL).
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 Keechant L. Sewell, Commissioner, New York City Police Department (NYPD), announced the sentence.
“The defendant drugged and killed multiple people for a few quick dollars. She stole their personal belongings while they lay unconscious dying from the lethal drugs she gave them. The defendant’s substantial prison sentence is warranted by her shocking disregard for human life,” stated United States Attorney Peace. “Hopefully, today’s sentence will bring some solace to the victims’ families and serve as a warning to future perpetrators that there are significant consequences to these horrific crimes.”
“Displaying complete disregard for human life, Barini peddled fentanyl-laced drugs to her victims who tragically lost their lives to temporary highs. The plague of addiction continues to devastate families and communities in New York and around the country. This case is a painful reminder that there are people like Barini who prey on addicts, turning deadly fentanyl cocktails into quick profits. HSI, along with our law enforcement partners, remains committed to investigating and dismantling networks that perpetuate opioid related overdose deaths. Today’s sentencing holds one more dealer responsible for profiting off the addiction of others, several of whom paid the ultimate price,” stated HSI Acting Special Agent-in-Charge Patel.
“For the immense harm her illegal narcotics peddling caused several victims, Angela Barini today will be sent to prison,” said Police Commissioner Sewell. “This sentence underscores the NYPD’s commitment, along with all of our law enforcement partners and the prosecutors in the U.S. Attorney’s Office for the Eastern District of New York, to never stop working to protect lives and ensure justice.”
As detailed in court filings and statements at court proceedings, between July and August of 2019, Barini provided narcotics to her victims to incapacitate and rob them of their belongings while sometimes conducting business as a sex worker. On multiple occasions, those narcotics contained lethal doses of fentanyl. On July 4, 2019, Barini met with a victim at a motel in Astoria, Queens and gave him fentanyl-laced drugs. The victim was found dead later that day. On July 11, 2019, Barini met with a victim at a motel in Woodside, Queens and gave him fentanyl-laced drugs which caused his overdose death. On August 5, 2019, Barini met another victim in College Point, Queens and gave him fentanyl-laced drugs which caused his overdose death.
Additionally, on August 18, 2019, Barini met a victim inside an Elmhurst, Queens motel room and drugged him with GBL, which is commonly referred to as a “date rape” drug. The victim died shortly after entering the motel room and Barini made repeated attempts to dispose of the victim’s body without being detected. On August 21, 2019, the NYPD found the victim dead in the motel room. The victim’s body had been wrapped in bleach-stained sheets and placed inside of a garbage bin.
The government’s case is being handled by the Office’s International Narcotics and Money Laundering Section. Assistant United States Attorneys Andrew D. Grubin and Andrew Wang are in charge of the prosecution.
The Defendant:
ANGELINA BARINI
Age: 43
Queens, New YorkE.D.N.Y. Docket No. 19-CR-428 (S-2) (BMC)
DOJ Paralegal Convicted of Witness Retaliation and Obstruction of Justice-Related CrimesRead the Press Release
Earlier today, following a one-week trial, a federal jury in Brooklyn returned a guilty verdict against Tawanna Hilliard, the mother of a 5-9 Brims gang member, on charges of witness retaliation, conspiracy to commit witness retaliation, obstruction of justice and conspiracy to obstruct justice. At the time of her crimes, Hilliard was a paralegal working in the Civil Division of another United States Attorney’s Office. Hilliard’s co-defendant and son, Tyquan Hilliard pleaded guilty in November 2020 to witness tampering conspiracy related to the same scheme and was sentenced to 63 months’ imprisonment.
Breon Peace, United States Attorney for the Eastern District of New York and Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Keechant L. Sewell, Commissioner, New York City Police Department (NYPD), announced the verdict.
“As found by the jury, the defendant, a paralegal in a federal prosecutor’s office, obstructed justice to retaliate against, harass and jeopardize the safety of suspected cooperating witnesses against her gang member son,” stated United States Attorney Peace. “Those who brazenly commit such acts, including through the anonymity provided by the use of social media and the internet, will be investigated and prosecuted.”
Mr. Peace thanked the Office of Inspector General for their assistance in the investigation and prosecution.
"Hilliard released information obtained in the discovery of a case involving her son in an effort to harass and retaliate against potential cooperating witnesses, which resulted in threats being made to those individuals. This type of behavior, especially from our public servants, won’t be tolerated,” stated Assistant Director-in-Charge Driscoll.
The evidence at trial proved that in May 2018, the defendant’s son, Tyquan Hilliard, a member of the 5-9 Brims, participated in an armed robbery of a cell phone store in Monticello, New York with another individual (“John Doe”) and that individual’s girlfriend (“Jane Doe”). Following the robbery, all three individuals were arrested by local police. John Doe and Jane Doe separately made video-recorded post-arrest statements to law enforcement (the “Videos”), including to federal task force officers investigating a string of commercial robberies committed by 5-9 Brims members.
In August 2018, the defendant received the discovery in her son’s robbery case, which included the video-recorded statements of John Doe and Jane Doe. She thereafter discussed the Videos in detail over recorded phone calls with her son, who was incarcerated following his arrest for the robbery. On August 5, 2018, as captured on a recorded jail call, the defendant’s son asked his mother to upload one of the Videos to the internet, and they discussed possible titles for the video. During the same call, the defendant’s son also spoke to another one of his associates and referred to the Videos as “ammunition.”
On August 5, 2018, the defendant uploaded the video of John Doe’s statement to YouTube. The video was uploaded from a Google account with username primetime59brim on Gmail and on YouTube. The video was entitled, “NYC Brim Gang Member SNITCHING! Pt. 1.”
Also on August 5, 2018, the defendant’s son asked the defendant to send the video of Jane Doe’s post-arrest statement to one of his gang associates over a recorded jail call. The defendant and her son also discussed “tagging” John Doe in the video, to make it clear he had also “snitched.” Later that day, a different user uploaded the video of Jane Doe’s statement to YouTube with the title, “NYC Brim Gang Member Girlfriend SNITCHING ([Facebook name of John Doe]).” The video of Jane Doe’s statement quickly garnered over 10,000 views, and a substantial amount of attention on social media, including comments that included threats of violence against Jane Doe and John Doe.
Shortly thereafter, Jane Doe began receiving numerous death threats and reported hearing gunshots outside her apartment. John Doe also received numerous death threats in prison, both in Sullivan County and, when he was arrested and charged federally, in the Bureau of Prisons.
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 Nicholas Moscow and Lindsey Oken are in charge of the prosecution with assistance from Paralegal Celine Laruelle.
The Defendant:
TAWANNA HILLIARD
Age: 47
Brooklyn, New YorkDefendant Previously Sentenced:
TYQUAN HILLIARD
Age: 32
Brooklyn, New YorkE.D.N.Y. Docket No. 19-CR-358 (S-1) (PKC)
Physician Indicted in $10 Million Telemedicine Health Care Fraud SchemeRead the Press Release
An indictment was unsealed today in federal court in Brooklyn charging Elemer Raffai, an orthopedic surgeon, with health care fraud in connection with a $10 million scheme involving the submission of false and fraudulent claims to Medicare and Medicare Part D plans. Raffai was arrested today and will make his initial court appearance this afternoon in United States District Court for the Northern District of New York.
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; Scott J. Lampert, Special Agent-in-Charge, U.S. Department of Health and Human Services, Office of Inspector General’s Office of Investigations (HHS-OIG); and Janeen DiGuiseppi, Special Agent-in-Charge, Federal Bureau of Investigation, Albany Field Office (FBI), announced the arrest and indictment.
“In exchange for kickbacks from telemedicine companies, Dr. Raffai allegedly submitted millions of dollars in false and fraudulent claims to Medicare on behalf of beneficiaries without even examining them or based on conversations on the phone that lasted less than three minutes,” stated United States Attorney Peace. “Dishonest doctors who think Medicare is a cash cow and connect with telemedicine companies to brazenly steal from this vital taxpayer-funded program, will find themselves arrested, prosecuted and their scheme disconnected.”
“These allegations describe a physician who is more motivated by personal enrichment than his duty to provide appropriate and necessary care to his patients,” stated HHS-OIG Special Agent in Charge Lampert. “Dr. Raffai is accused not only of disregarding proper patient care, but also of pilfering funds from a program upon which millions of citizens depend for health services. Our agency and law enforcement partners are dedicated to tracking down individuals who commit health care offenses, and their involvement in a fraud network does not insulate them from our pursuit.”
“Healthcare fraud is a serious crime that impacts every American. Dr. Raffai cheated the system for his own personal gain in the amount of $10 million. Like many others who commit healthcare fraud, Dr. Raffai’s crimes contribute to the rising cost of health care for everyone. The FBI, along with our partners, will continue to investigate healthcare fraud to ensure these individuals who willingly defraud the American people are brought to justice,” stated FBI Special Agent-in-Charge DiGuiseppi.
According to the indictment, Dr. Raffai purported to practice telemedicine with the AffordADoc Network and other telemedicine companies that paid the defendant for each consultation with a beneficiary. Between July 2016 and June 2017, Dr. Raffai allegedly participated in a health care fraud scheme in which he signed prescriptions and order forms via purported telemedicine services for durable medical equipment (DME), including orthotic braces, that were not medically necessary. Dr. Raffai caused the submission of these claims based solely on a short telephone conversation for beneficiaries he had not physically examined and evaluated, and that were induced, in part, by the payments of bribes and kickbacks. Dr. Raffai was paid by telemedicine companies approximately $25 or $30 per patient consultation. The indictment further alleges that Dr. Raffai, together with others, submitted or caused the submission of approximately $10 million in false and fraudulent claims to Medicare for DME on behalf of beneficiaries who were residents of the Eastern District of New York, and Medicare paid more than $4 million on those claims.
The charges in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty. If convicted, Dr. Raffai faces up to 10 years in prison.
The FBI and HHS-OIG are investigating the case, which was brought as part of the Medicare Fraud Strike Force under the supervision by the U.S. Attorney’s Office for the Eastern District of New York and the Criminal Division’s Fraud Section. Trial Attorneys Andrew Estes and Kelly M. Lyons of the Criminal Division’s Fraud Section are in charge of the prosecution.
The Fraud Section leads the Medicare Fraud Strike Force. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 15 strike forces operating in 24 districts, has charged more than 4,200 defendants who have collectively billed the Medicare program for nearly $19 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
Defendant:
DR. ELEMER RAFFAI
Age: 56
Malone, New YorkE.D.N.Y. Docket No.: 22-CR-177 (SJ)
Supervisor at Long Island Drug Manufacturer Sentenced to Prison for Theft of Medical ProductsRead the Press Release
Earlier today, in federal court in Central Islip, Gregory Settino, a resident of Bethpage, New York, was sentenced by United States District Judge Joanna Seybert to a year and a day’s imprisonment for theft of approximately $750,000 worth of medical products. The Court also ordered Settino to pay restitution of $847,093.
Breon Peace, United States Attorney for the Eastern District of New York, and Ronne G. Malham, Acting Special Agent-in-Charge, Food and Drug Administration, Office of Criminal Investigations, New York Field Office (FDA-OCI), announced the sentence.
“Today’s sentence is the finish line of Gregory Settino’s criminal conduct. He stole thousands of bottles of drugs, ignored safe handling practices, and allowed them to be given to horses at New York racetracks without regard for the health of the animals – only focusing on his own personal gain,” stated United States Attorney Peace. “Those who jeopardize drug safety and risk the health of others will be held accountable and face serious consequences.”
“The FDA ensures that veterinary drugs are safe and effective so that animals remain healthy. Drugs that are taken out of the legitimate supply chain pose a risk to the animals that take them,” said Acting Special Agent in Charge Malham. “We will continue to investigate and bring to justice those who endanger the health of animals.”
As admitted at defendant’s plea, Settino, the production supervisor of manufacturing at a Long Island Drug Manufacturer, American Regent formerly Luitpold Pharmaceuticals, Inc. in Shirley, New York, Settino stole Adequan, a drug manufactured there. Adequan is an injectable equine drug administered to horses to treat degenerative joint disease Settino’s thefts of thousands of bottles of Adequan covered a period of eight years, from 2012 to 2020, and Settino sold those drugs worth $750,000 for hundreds of thousands of dollars to trainers and veterinarians at New York racetracks, including Belmont Park. Settino’s conduct endangered the health of horses because the drugs were not maintained, stored or transported in accordance with proper procedures for ensuring the safety, effectiveness and efficacy of the drugs. At times, Settino transported the drugs in shoeboxes stored in his car.
The government’s case is being prosecuted by the Office’s Long Island Criminal Division. Assistant United States Attorney Charles P. Kelly is in charge of the prosecution.
The Defendant:
GREGORY SETTINO
Age: 60
Bethpage, New YorkE.D.N.Y. Docket No. 20-CR-340 (JS)
Long Island Medical Doctor Charged as Part of COVID-19 Health Care Fraud Enforcement ActionRead the Press Release
An indictment was returned yesterday in Central Islip charging Dr. Perry Frankel with three counts of health care fraud for an alleged scheme to defraud Medicare and Medicaid of over $1.3 million in claims that were billed during the COVID-19 health emergency in connection with COVID-19 testing. Frankel, a cardiologist and the owner and operator of Advanced Cardiovascular Diagnostics PLLC, allegedly caused the submission of claims to Medicare and Medicaid for office visits that were not performed for patients who received COVID-19 tests at Advanced Cardiovascular Diagnostics PLLC’s mobile testing sites across Long Island, including on dates when Frankel was not present in the state of New York. Frankel was arrested this morning and will be arraigned this afternoon before United States District Judge Joanna Seybert.
Breon Peace, United States Attorney for the Eastern District of New York, Kenneth A. Polite, Jr. Assistant Attorney General of the Justice Department’s Criminal Division; and Scott J. Lampert, Special Agent-in-Charge, U.S. Department of Health and Human Services, Office of Inspector General’s Office of Investigations (HHS-OIG), announced the charges.
“As alleged, exploiting a public health crisis by using patients who received COVID-19 tests at mobile testing sites to fraudulently bill Medicare and Medicaid for fictitious office visits is reprehensible,” stated United States Attorney Peace. “This Office and our law enforcement partners will vigorously prosecute those who take advantage of the pandemic to steal from taxpayer-funded programs."
“As alleged, Frankel took advantage of the COVID-19 health crisis to engage in a fraud scheme that undermined our health care system and the people it serves,” said HHS-OIG Special Agent in Charge Lampert. “Such scams waste taxpayer funds and drive up healthcare costs for all of us. HHS-OIG and our law enforcement partners will remain vigilant in our efforts to root out all related fraud schemes during the ongoing public health emergency.”
“The Department of Justice’s Health Care Fraud Unit and our partners are dedicated to rooting out schemes that have exploited the pandemic,” said Assistant Attorney General Polite. “Today’s enforcement action reinforces our commitment to using all available tools to hold accountable medical professionals, corporate executives, and others who have placed greed above care during an unprecedented public health emergency.”
The charges filed in Central Islip are part of a coordinated health care fraud enforcement action across nine federal districts, led by the Medicare Fraud Strike Force, that resulted in criminal charges against 21 defendants for their alleged participation in health care fraud schemes related to COVID-19 involving more than $149 million in false and fraudulent claims.
HHS-OIG is investigating the case, which was brought as part of the Medicare Fraud Strike Force under the supervision of the U.S. Attorney’s Office for the Eastern District of New York and the Criminal Division’s Fraud Section. Trial Attorneys Kelly M. Lyons and Patrick J. Campbell of the Fraud Section are in charge of the prosecution.
The Fraud Section leads the Medicare Fraud Strike Force. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 15 strike forces operating in 24 districts, has charged more than 4,200 defendants who have collectively billed the Medicare program for nearly $19 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
The charges in the indictment are merely allegations, and the defendant is presumed innocent unless and until proven guilty.
The Defendant:
PERRY FRANKEL
Age: 64
Roslyn, New YorkE.D.N.Y. Docket No. 22-CR-180
Former NYPD Police Officer Sentenced to 97 Months' Imprisonment for Bribery and Drug Trafficking OffensesRead the Press Release
Earlier today, in federal court in Brooklyn, Robert Smith, a former New York City Police Department (“NYPD”) police officer, was sentenced by United States District Judge Rachel P. Kovner to 97 months of imprisonment for using interstate facilities to commit bribery and attempting to transport heroin. During the relevant period, Smith was a NYPD police officer assigned to the 105th Precinct in Queens, retiring in March 2020. Smith pleaded guilty to the charges in October 2021. Smith’s co-defendant, Heather Busch, also a former NYPD police officer, was sentenced in February 2022 to six months’ imprisonment, after pleading guilty in August 2021 to using interstate facilities to commit bribery. Another co-defendant, Robert Hassett, also a former NYPD police officer, pleaded guilty in October 2021 to conspiracy to violate the Travel Act and is awaiting sentencing.
Breon Peace, United States Attorney for the Eastern District of New York; Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI); and Keechant L. Sewell, Commissioner, NYPD, announced the sentence.
“Corruption not only endangers the communities that police officers are sworn to serve, but it also corrodes the public’s trust in law enforcement and the criminal justice system. Robert Smith and his co-defendants were corrupt officers who sold out their badges for personal gain without regard for the betrayal and the harm they caused the NYPD and their fellow officers,” stated United States Attorney Peace. “For his crimes, Smith, self-described as ‘one of the most corrupt cops in the 105’, deservedly will spend years in prison. Today’s sentence should send a message that this Office, together with our law enforcement partners, will work diligently to investigate and prosecute corrupt public servants who exploit their positions of power for profit.”
“We have zero tolerance for corruption of any kind within the NYPD,” stated NYPD Commissioner Sewell. “We and our law-enforcement partners will continue to vigorously pursue corrupt public servants who exploit their positions for personal gain. In addition to eroding public trust in law enforcement, their disgraceful actions tarnish the reputation of the many thousands of police officers who honorably serve our communities each day.”
Smith engaged in several corrupt schemes to solicit and receive bribes while employed by the NYPD. Upon his retirement from the NYPD, Smith agreed to transport illegal drugs while armed with a gun in exchange for cash payments. In recordings obtained by the government during the investigation, Smith repeatedly referred to himself in criminal terms as, for example, “one of the most corrupt cops in the 105,” a “perp[] that got away,” and someone who, had he not been an NYPD officer, would have been “locked up so many times.”
The Tow Truck Scheme
Beginning in September 2016, NYPD Officers Smith and Hassett responded to automobile accidents by directing the damaged vehicles to a licensed tow trucking and automobile repair business (the “Business”) operated by an individual (the “Individual”), instead of using the NYPD’s Directed Accident Response Program (“DARP”), which requires NYPD officers to identify an appropriate licensed tow trucking business to respond to the scene of the automobile accident and remove the damaged vehicles from the scene. Smith and Hassett bypassed DARP and directed damaged vehicles directly to the Business in exchange for thousands of dollars in cash bribe payments. Smith and Hassett continued to participate in the scheme until at least June 2017.
In November 2019, Smith resumed his participation in the scheme and continued to steer vehicles damaged in automobile accidents to the Business in exchange for cash. Beginning in January 2020, Smith discussed his plan to recruit Busch to participate in the scheme in advance of his retirement from the NYPD. In March 2020, Busch, at Smith’s invitation, met with Smith and the Individual and agreed to participate in the scheme. Thereafter, Busch began steering vehicles damaged in automobile accidents to the Business in exchange for cash bribe payments, instead of utilizing DARP as required.
The Victim Database Scheme
Beginning in January 2020, Smith and Hassett obtained the names and identifying information of recent automobile accident victims from NYPD databases and provided that information to the Individual in exchange for cash. Smith and Hassett understood that the Individual would sell that information to physical therapy businesses and personal injury attorneys so that they could seek to solicit the automobile accident victims as customers.
Hassett accessed NYPD databases on numerous occasions in violation of NYPD regulations for the purpose of obtaining the names and identifying information of victims of automobile accidents. Hassett then arranged for that information to be delivered to the Individual, sometimes through Smith. In total, between January 2020 and March 2020, Smith and Hassett sold the names and identifying information of more than 100 victims to the Individual, in exchange for more than $7,000 in cash.
The Armed Drug Trafficking Scheme
Beginning in January 2020, Smith sought opportunities from the Individual to transport illegal narcotics, in exchange for payment, upon Smith’s retirement from the NYPD. In June 2020, Smith met with two undercover law enforcement officers posing as narcotics traffickers to discuss his interest in participating in a scheme to traffic drugs and told them he could carry a firearm and his retired NYPD identification while he was transporting the drugs. In July 2020, Smith met with a third undercover law enforcement officer and accepted a bag containing what Smith believed to be a kilogram of heroin. Smith transported the bag to a location in Queens where he delivered it to another undercover law enforcement officer in exchange for a payment of approximately $1,200 in cash.
The government’s case is being handled by the Office’s Public Integrity Section. Assistant United States Attorneys Ryan C. Harris and Nicholas J. Moscow are in charge of the prosecution.
The Defendants:
HEATHER BUSCH
Age: 35
Massapequa, New YorkROBERT HASSETT
Age: 37
Farmingville, New YorkROBERT SMITH
Age: 45
Plainview, New YorkE.D.N.Y. Docket No. 21-CR-254 (RPK)
Statement of U.S. Attorney Breon Peace on Sentencing of Edward and Linda ManganoRead the Press Release
“In the federal courthouse behind me, a short time ago, former Nassau County Executive Edward Mangano was sentenced by the Court to 12 years in prison, and his wife, Linda Mangano, to 15 months in prison.
Nearly two years ago, a federal jury found Edward Mangano guilty of conspiracy to obstruct justice and multiple counts of taking bribes and kickbacks from a businessman in exchange for pressuring local officials to guarantee the businessman’s loans. Linda Mangano was found guilty of obstructing the investigation by lying to the FBI about getting a lucrative “no show” job from that businessman, which was a bribe to her husband.
Edward Mangano’s blatant acts of corruption, and the defendants’ concerted efforts to obstruct a federal grand jury investigation, display a stunning abuse of power. The defendants’ conduct is an affront to our system of government and, quite frankly, a betrayal to the people of Nassau County, especially the residents of the Town of Oyster Bay.
From the moment he was elected, Edward Mangano sold himself and his office. He cashed in the power, the resources, and the influence of his office to enrich himself and his wife. For Ed Mangano, public service was self-service. He received bribes in the form of vacations, an expensive watch, furniture and hardwood flooring for his house. And, most notably, a $100,000-a-year no-show job for his wife, Linda Mangano.
Simply put, Edward Mangano is going to jail for brazenly abusing the power of his office as the top elected official of Nassau County. He is going to jail for betraying not only the people who elected him, but every resident of Nassau County who believes that government is supposed to do good, make our lives better and serve our communities honestly and without public officials lining their pockets with taxpayers’ hard-earned money.
To this day, neither defendant has shown a trace of remorse for their crimes and maintain they did nothing wrong. Their lack of shame is remarkable.
Edward and Linda Mangano’s flagrant disregard for the law has left them convicted felons and headed for prison. Today’s sentence demonstrates that corruption and obstruction will not be tolerated.
I stand here together with the outstanding prosecutors from my Office and the exceptional FBI agents who successfully brought the Manganos to justice, with a very important message. I want to assure the public that their faith in government and our criminal justice system is not misplaced. The disgraceful and greedy conduct of the Manganos has been exposed and punished.
And the same fate awaits those in public service who abuse their positions to serve themselves and not the people. Officials who choose to deprive the people of the honest services they deserve will find themselves in a courtroom learning that there is a serious price to pay for their corruption. No one is above the law.
I will conclude my remarks on a positive note, praising the prosecutors and FBI agents I mentioned moments ago. I want to commend Assistant United States Attorneys Catherine Mirabile, Christopher Caffarone and former Eastern District Assistant U.S. Attorney Lara Treinis Gatz for their tireless, tenacious and terrific work on the case. I also thank Paralegal Specialist Samantha Schroder and Legal Assistant Kerry Ucci. They were ably assisted in the pursuit of justice by FBI Special Agents Laura Spence, Frank Lomonaco and William Sena, Forensic Analyst William Del Gais and Eastern District of New York Special Agent Michael Cassidy.”
Watch the video of the statement here.
Former Nassau County Executive Edward Mangano and His Wife Linda Mangano Sentenced for Corruption and Related ChargesRead the Press Release
Earlier today, at the federal courthouse in Central Islip, Edward Mangano, the former Nassau County Executive, and his wife Linda Mangano were sentenced by United States District Judge Joan M. Azrack to 12 years, and 15 months’, imprisonment, respectively, following their convictions after a seven-week trial. Edward Mangano was convicted of multiple counts of accepting bribes and kickbacks in exchange for official government action, and for conspiracy to obstruct justice. Linda Mangano was also convicted of conspiracy to obstruct justice, obstruction of justice and making false statements to Federal Bureau of Investigation (FBI) agents in connection with her employment by Long Island restaurateur Harendra Singh. Edward Mangano was also ordered to pay a $20,000 fine.
Breon Peace, United States Attorney for the Eastern District of New York, and Michael J. Driscoll, Assistant Director-in-Charge, FBI, New York Field Office (FBI), announced the sentences.
“Edward Mangano, as County Executive, gave Nassau residents widespread corruption and dishonesty instead of truth and integrity. Linda Mangano took affirmative steps to mislead a federal investigation to keep her husband in power and to maintain their way of life,” U.S. Attorney Peace stated. “Today’s sentence should send a strong, unambiguous message to any public official willing to place their personal interest above the public’s, and to those inner circle members who corruptly attempt to protect them from prosecution: my Office will employ all resources at its disposal to investigate, prosecute, and convict you in order to restore the public’s faith in our elected officials.”
Mr. Peace thanked the FBI and the Internal Revenue Service Criminal Investigation for their work on the case.
The evidence at trial established that between January 2010 and February 2015, Edward Mangano engaged in schemes to solicit and receive bribes and kickbacks from Singh. In return for the cash and personal benefits he received, Mangano, who served as Nassau County Executive from January 2010 to December 2017, performed official actions to benefit Singh in connection with his businesses.
The Town of Oyster Bay (TOB) Loan Scheme
Several weeks after Edward Mangano took office as Nassau County Executive in January 2010, he urged TOB Supervisor to help Singh obtain financing in order to make required capital improvements at TOB Beach and The Woodlands at the TOB golf course, by authorizing the TOB to indirectly guarantee four bank loans totaling approximately $20 million. Mangano used his official position to ensure that the TOB backed the loans. In April 2010, Singh hired Linda Mangano for a sham job as the purported Director of Marketing for Singh’s businesses. Shortly thereafter, the TOB indirectly guaranteed the first of four personal loans to Singh related to the beach and the golf course. Singh paid for five vacations, hardwood flooring, a custom-made office chair, a massage chair and a watch for the Manganos, as well as over $450,000 in total for Linda Mangano’s no-show job.
Obstruction of Justice
Edward and Linda Mangano conspired to obstruct a federal grand jury investigation when they schemed with Singh to fabricate examples of work never performed by Linda Mangano at the Water’s Edge, in an attempt to thwart a grand jury investigation. On May 20, 2015 and May 22, 2015, Linda Mangano made false statements to the FBI and federal prosecutors about the work she claimed to have performed for Singh.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorneys Catherine M. Mirabile, Christopher Caffarone and former Eastern District Assistant United States Attorney Lara Treinis Gatz are in charge of the prosecution. Assistant United States Attorney Madeline O’Connor is responsible for the forfeiture of assets.
The Defendants:
EDWARD MANGANO
Age: 60
Bethpage, New YorkLINDA MANGANO
Age: 59
Bethpage, New YorkE.D.N.Y. Docket No. 16-CR-540 (S-2) (JMA)
Brooklyn Man Arrested for Arson of Rash NightclubRead the Press Release
A criminal complaint was unsealed today in federal court in Brooklyn charging John Lhota with the April 3, 2022 arson of Rash, a bar and nightclub in Bushwick frequented by members of the LGBTQ+ community. Lhota was arrested yesterday and will make his initial appearance this afternoon before United States Magistrate Judge Roanne L. Mann.
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 Laura Kavanagh, Acting Commissioner, New York City Fire Department (FDNY), announced the arrest and charge.
“As alleged, Lhota deliberately set fire to a bar and nightclub patronized by members of the LGBTQ+ community, seriously injuring two of its employees, and endangering all present including the tenants of the building as well as the first responders who battled the blaze for approximately one hour,” stated United States Attorney Peace. “This Office strongly condemns such acts of violence, and will vigorously prosecute this case. The victims, and all LGBTQ+ New Yorkers, should be able to enjoy their nights out in peace and without fear of such a dangerous attack.”
Mr. Peace praised the Special Agents, Fire Marshals and Detectives of the Arson and Explosives Task Force for their outstanding investigative work on the case.
“Arson is a violent crime that impacts all New Yorkers. The prompt investigation leading to the arrest of Lhota demonstrates the commitment of the Arson and Explosive (A&E) Task Force to rapidly apprehend and bring to justice those who violently attack members of our community. ATF and its partners at FDNY and NYPD hope for the quick and full recovery of the victims,” stated Special Agent-in-Charge DeVito.
“This was a brazen act of arson that seriously injured two people, placed the lives of residents and dozens of Firefighters in grave danger, and struck fear throughout an entire community,” said Acting Fire Commissioner Laura Kavanagh. “I commend our Fire Marshals for their outstanding work alongside members of the NYPD and ATF to apprehend this dangerous individual.”
As set forth in the complaint, on the evening of April 3, 2022, Lhota was captured on security video purchasing a red gas canister at a service station and filling it with gasoline. Lhota then proceeded to Rash, located on the ground floor of a multi-story building at 941 Willoughby Avenue, where he allegedly poured gasoline over the floor of the bar. The video showed Lhota tossing a lit cigarette on the floor, but the gasoline did not ignite. Lhota then used a cigarette lighter to ignite the gasoline, causing an explosion and a fire. The floors above Rash contain residential apartments. Firefighters responded to the location and extinguished the blaze. Two employees of Rash were injured and required hospitalization. The building sustained heavy damage due to the fire. Security video captured Lhota fleeing the burning nightclub.
The charge in the complaint is an allegation, and the defendant is presumed innocent unless and until proven guilty. If convicted, Lhota faces a mandatory minimum sentence of 7 years’ imprisonment, and a maximum of 40 years’ imprisonment.
The government’s case is being handled by the Office’s General Crimes Section. Assistant United States Attorney John O. Enright is in charge of the prosecution.
The Defendant:
JOHN LHOTA
Age: 24
Brooklyn, New YorkE.D.N.Y. Docket No. 22-MJ-408
Statement of U.S. Attorney Breon Peace on United States v. Frank JamesRead the Press Release
“Yesterday was a dark day for all of us. But the bright spots of the incredible heroism of our fellow New Yorkers helping each other in a time of crisis, the quick response by our first responders, and the hard work by all of our law enforcement partners that has been ongoing truly shines bright.
Today Frank James has been charged by complaint in Brooklyn Federal Court with one count of violating 18 U.S.C. 1992(a)(7), which prohibits terrorist and other violent attacks against mass transportation systems. Once apprehended, and if convicted, he will face a sentence of up to life imprisonment.
My office is prepared to prove beyond a reasonable doubt that:
On April 12, 2022, in Sunset Park, Brooklyn, in the Eastern District of New York, the defendant Frank James did knowingly and without lawful authority and permission commit an act, including the use of a dangerous weapon, with the intent to cause death and serious bodily injury to passengers and MTA employees on the New York City subway system. The government will prove, among other things, that James traveled across a state line in order to commit the offense and transported materials across a state line in aid of the commission of the offense.We are working closely with all of our law enforcement partners at the Kings County District Attorney’s Office, FBI, NYPD, ATF and the U.S. Marshals Service. My office will use every tool at our disposal to bring this individual to justice, and restore safety and peace of mind to all.”
Owner of Queens Pharmacies Sentenced to 78 Months in Prison for Health Care FraudRead the Press Release
BROOKLYN, NY – Earlier today, in federal court in Brooklyn, Aleah Mohammed was sentenced to 6.5 years in prison for carrying out multiple schemes to defraud health care programs, including obtaining more than $6.5 million from Medicare Part D plans and Medicaid drug plans. Mohammed pleaded guilty to one count of mail fraud, one count of health care fraud, and one count of conspiracy to commit health care fraud in April 2021.
Breon Peace, United States Attorney for the Eastern District of New York; Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division; Scott J. Lampert, Special Agent-in-Charge U.S. Department of Health and Human Services, Office of Inspector General’s Office of Investigations (HHS-OIG); and Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the sentence.
“Through the Superdrugs Pharmacies that she owned and operated, the defendant was dispensing phantom prescriptions for fraud, stealing millions of dollars from the Medicare and Medicaid programs by submitting false claims for reimbursement,” stated U.S. Attorney Peace. “Today's sentence demonstrates there are consequences for those who choose to finance lavish lifestyles by diverting government resources from health care programs intended to help those truly in need.”
According to court documents, Mohammed was an owner and operator of five pharmacies: Superdrugs Inc., Superdrugs I Inc., Superdrugs II Inc., S&A Superdrugs II Inc. and Village Stardrugs Inc. Between 2015 and 2020, Mohammed utilized these pharmacies to engage in schemes that defrauded health care programs, including Medicare and Medicaid, by submitting claims for prescription drugs that were not dispensed, not prescribed as claimed, not medically necessary, or that were purportedly dispensed during a time when the pharmacy was no longer registered with the State of New York. The fraudulent claims included claims for expensive prescription drugs for the treatment of the human immunodeficiency virus (HIV). Mohammed and her family used proceeds of the scheme to purchase luxury items such as a Cadillac Escalade SUV, a Mercedes Benz sedan, a Porsche Turbo coupe, as well as jewelry and property in Queens and Pocono Pines, Pennsylvania.
The FBI and HHS-OIG are investigating the case, which was brought as part of the Medicare Fraud Strike Force under the supervision by the U.S. Attorney’s Office for the Eastern District of New York and the Criminal Division’s Fraud Section. Trial Attorneys Andrew Estes and Patrick J. Campbell of the Criminal Division’s Fraud Section are in charge of the prosecution.
The Fraud Section leads the Medicare Fraud Strike Force. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 15 strike forces operating in 24 districts, has charged more than 4,200 defendants who have collectively billed the Medicare program for nearly $19 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
The Defendant:
ALEAH MOHAMMED (also known as “Abby”)
Age: 37
Queens, New YorkE.D.N.Y. Docket Nos. 18-CR-509 and 20-CR-581 (ENV)
Frank James Charged in Brooklyn Mass Shooting on New York SubwayRead the Press Release
A criminal complaint was unsealed today in federal court in Brooklyn charging Frank James with conducting a violent attack on a mass transportation vehicle in violation of 18 U.S.C. §§ 1992(a)(7) and (b)(1). The charge, terrorist attacks or other violence against a mass transportation system, relates to the April 12, 2022, mass shooting on the New York City subway in Sunset Park, Brooklyn. James was arrested earlier today by New York City police officers in Manhattan and will make his initial appearance tomorrow before United States Magistrate Judge Roanne L. Mann.
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), John DeVito, Special Agent-in-Charge, U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives, New York (ATF) and Keechant L. Sewell, Commissioner, New York City Police Department (NYPD), announced the arrest and charge.
“As alleged, the defendant committed a heinous and premeditated attack on ordinary New Yorkers during their morning subway commute,” stated United States Attorney Peace. “All New Yorkers have the right to expect that they will be safe as they travel throughout our great city and use our vital transportation systems. I am grateful to our law enforcement partners, the first responders and the everyday New Yorkers who stepped up during this crisis and showed the best of our city. And, we continue to pray for the victims and their loved ones as they recover from this traumatic event, both physically and emotionally.”
Mr. Peace praised the outstanding efforts of the FBI’s New York Joint Terrorism Task Force, which consists of investigators and analysts from the FBI, the NYPD, and over 50 other federal, state, and local agencies.
“Yesterday, as everyday New Yorkers commuted through Brooklyn on our subway system, Frank James – as alleged – committed a horrific act that resulted in an around-the-clock effort by the FBI's Joint Terrorism Task Force in New York, the NYPD, and the ATF to find him and bring him to justice. Thanks to the incredible work by all involved to identify James and get the proper information out to the public, he's in federal custody and New Yorkers can breathe a little easier in our city today,” stated FBI Assistant Director-in-Charge Driscoll.
“Today’s arrest of Frank James was in large part due to the vigilance and a concerted effort by New Yorkers to aid law enforcement in the apprehension of violent criminals. We at ATF applaud the public’s engagement and participation in providing vital information to apprehend James, and we hope for a speedy recovery for all victims. ATF will continue to utilize our nationwide Crime Gun Intelligence capabilities to support our partners in the continued investigation of Tuesday’s horrific attack on the NYC subway,” stated ATF Special Agent-in-Charge DeVito.
“Today, after nearly 30 hours of dogged police work, Frank James was arrested by the NYPD without incident,” stated NYPD Commissioner Sewell. “From the moment Mr. James committed this appalling crime, the police began shrinking his world until he had nowhere to turn – and the people of our city were working right alongside us. So together with our law enforcement partners at the FBI, the ATF, the U.S. Marshals Service, and the U.S. Attorney’s Office for the Eastern District of New York, I want to thank New Yorkers for their vigilance and their help in taking this violent criminal off our streets.”
As set forth in the complaint, during rush hour on the morning of April 12, 2022, James used a Glock 17 pistol he purchased in Ohio to conduct a mass shooting on an N subway train in Brooklyn. James, dressed in an orange reflective jacket, yellow hard hat, and surgical mask, set off a smoke-emitting device in one of the train cars before firing at subway riders. James had arrived in New York earlier that day in a rental van driven from Pennsylvania. He parked the van on Kings Highway, approximately two blocks from the entrance to an N-train station, near where the shooting took place. After the attack, James abandoned a bag containing, among other items, fireworks, a plastic container containing gasoline, and a torch.
In videos he posted publicly on YouTube before the attack, James made various statements about the New York City subway system. Among other things, James addressed statements to New York City’s mayor: “What are you doing, brother? What’s happening with this homeless situation?” and “Every car I went to wa[s] loaded with homeless people. It was so bad, I couldn’t even stand.” James also made statements, in sum and substance, about various conspiracy theories, including that: “And so the message to me is: I should have gotten a gun, and just started shooting motherf---ers.”
Following the attack, members of law enforcement executed court-authorized search warrants for properties associated with James in Pennsylvania. Agents recovered, among other items: 9mm ammunition; a threaded 9mm pistol barrel, which allows for a silencer or suppresser to be attached;.223 caliber ammunition, which is used with an AR-15 semi-automatic rifle; a taser; a high-capacity rifle magazine; and a blue smoke canister.
If convicted the defendant faces a maximum sentence of life imprisonment.
The charge in the complaint is an allegation, and the defendant is presumed innocent unless and until proven guilty.
Anyone with information about Mr. James or this incident is asked to call the FBI at 1-800-CALLFBI. Digital tips may also be submitted by visiting www.fbi.gov/brooklynshooting.
The government’s case is being handled by the Office’s National Security and Cybercrime Section. Assistant U.S. Attorneys Douglas M. Pravda, Alexander A. Solomon, Craig R. Heeren, David K. Kessler, Ian C. Richardson, Artie McConnell, Alexander Mindlin, Sara Winik, Ellen Sise, and Meredith A. Arfa, and Paralegal Specialists Wayne Colon and Benjamin Richmond, handled the investigation, with assistance provided by Trial Attorney Larry Schneider of the National Security Division’s Counterterrorism Section.
The Defendant:
FRANK JAMES
Age: 62
Milwaukee, WisconsinE.D.N.Y. Docket No. 22-MJ-429
全国性人口贩卖和性贩卖集团的九名成员及其同伙以敲诈勒索及相关罪名被起诉Read the Press Release
被告教唆成员内容包括：“（如果她）敢反抗，就打得更狠一点， 打出来点效果，钱不能白扔“
布碌仑联邦法庭今天对陈思阳、陈思宇 (同时被称为班班，译音) 、姜波、宋美珍（同时被称为蝶蝶）、徐荣荣（同时被称为Eleanor）、严家润 (同时被称为Raymond Yan 及Mike) 、于基龙、卡洛斯.柯瑞 (Carlos Cury) 及唐泽荣所涉及的罪行提出20项起诉，其中包括诈骗、性贩卖、霍布斯法抢劫和暴力攻击等罪名。此一犯罪集团以纽约州皇后区为基地，但罪行遍布全美，包括夏威夷州、堪萨斯州、密西根州、密苏里州、内布拉斯加州、新罕布什尔州、俄勒冈州、德克萨斯州和华盛顿州。共有八名被告逮捕到案，并将于今天下午在助理法官XXXX庭上提讯过堂。
美国司法部调查局纽约州东区律师皮斯 (Breon Peace)、联邦调查局纽约办公室助理监察德睿斯考（Michael J. Driscoll）和纽约市警察局局长塞维尔(Keechant L. Sewell)共同宣布了本次逮捕行动和起诉罪名。
司法调查局律师皮斯指出， “这些被告锁定弱势女性进行性贩卖罪行，并用暴力袭击这些受害人，让她们服从犯罪集团的指令，个人不应成为交易标的，而在此项罪行中的受害者，无论她们的移民身份为何，都应享有免受暴力及被迫提供性行为的自由。我们希望今天的逮捕能为这些受害人遭受的恐怖经历，带来一定程度的司法正义，这个案例是我们检调单位长期以来打击以剥削受害人自由并从中获利的人口贩卖集团，并致力将其绳之以法的另一证明。“
法院罪状指出，被告在2019年4月到2021年9月间，涉及暴力和组织诈骗集团，并在全美经营获利丰厚的卖淫业务，此犯罪集团主要招募来自中国且不具合法居留美国身份的女性，为该集团提供卖淫业务。这些受害人有时还必须提供她们的身份证明文件，让涉案罪犯能对其进行更多掌控，该犯罪集团会安排这些女性从纽约州旅行至全美各地，每次在酒店或集团控制的公寓内停留数周，并在停留期间进行商业行为。犯罪集团成员及同伙会在交易完成后向这些被害女性收取金钱，然后用此收入进一步推广人口贩卖及跨州卖淫行为，让涉及罪犯从中获利。
如罪状中提出的，以上犯罪集团的罪犯及其同伙在2020年1月8日至2021年9月1日期间，在五个州境内对超过15名女性进行或教唆施暴，这些受害的中国女性应是为这犯罪集团或其对手集团提供商业卖淫活动，集团成员对这些女性进行暴力袭击，期能让这些受害人服从指令完成卖淫工作，并相信因为这些被害人不是美国公民，所以从事商业的性交易工作将不会受起诉。特别是这犯罪集团成员及同伙会指派个别男子担任嫖客，让受害人在不知情前提下让这些同伙进入酒店房间，一旦入室后，这些假嫖客将封住被害人的嘴、用铁锤、棍棒或其他突击物品对被害人施暴，并掠夺其财物。如果这些暴力行为对受害人没有造成足够伤害，该集团和罪犯还会鼓励施暴者用更严酷的殴打，在执法单位所录取的一段电话对话中，其中一名成员告诉施暴人“明天往死里打，敢反抗就打得更狠一点，打出来点效果，钱不能白扔”。另一段录取的对话则是一位成员说“这次不一样， 咱不要绑手。一个人控制锁喉，另一个人往死里打四肢，绝对不能发出声音，把她打到不能反抗了， 完事儿拿了手机就走。”
起诉书中的罪状均属指控，所有被告在证明有罪之前均属无辜。
皮斯律师对联邦调查局和纽约市警察局的调查工作特别提出赞扬，这次的调查工作收到全美执法单位的协助，皮斯律师也致意感谢内布拉斯加州的美国司法局办公室、美国国土防卫部边境移民管理局位于俄克拉荷马市和曼彻斯特市二个办公室的执法单位，另外，包括俄勒冈州毕佛尔顿市警局、密西根州警、密苏里州高速公路巡警、俄克拉荷马市（俄克拉荷马州）警局、欧佛兰公园市（堪萨斯州）警局、波特兰市（俄勒冈州）警局、南区市（密西根州）警局、和突洛依市（密西根州）警局等地方执法单位也在本次调查中提供宝贵协助。
政府当局将由组织犯罪和帮派及民权办公室担任代表，对本案提起诉讼，司法院助理法官盖力奥提（Matthew R. Galeotti）、奔辛（Kayla C. Bensing）和史瓦瑞兹（Sophia M. Suarez）将负责本案的诉讼。
联邦调查局纽约亚裔犯罪集团联合专案组确信, 这个集团可能要对更多在美国各地发生的, 对从事性交易的性工作者的攻击事件负责。如果您是受害者, 或有讯息要提供，可以通过以下方式联系我们: 您可以在tips.fbi.gov通过网络举报, 或拨打我们的直线电话1-800-CALL-FBI. 无论您是什么移民身份, 我们有专人随时用您的母语与您交谈。 接通后, 请选择英文; 然后告訴接线生您需要的翻译。 您可以用任何语言进行网络举报。紧急事件, 请拨打911给警方。
被告:
陈思阳
32岁
纽约州皇后区陈思宇 （同时被称为班班）
24岁
纽约州皇后区姜波
26 岁
纽约州皇后区宋美珍 （同时被称为“蝶蝶“）
23岁
达拉斯市，德克萨斯州徐荣荣（同时被称为 “Eleanor”）
29 岁
纽约州皇后区严家润（同时被称为 “Raymond Yan” 和 “Mike”）
28 岁
纽约州皇后区于基龙
23岁
达拉斯市，德克萨斯州CARLOS CURY
41岁
纽约州皇后区唐泽荣
24岁
纽约州皇后区Statement of United States Attorney Breon Peace Regarding New Federal Ghost Guns RuleRead the Press Release
In May 2021, the Justice Department’s Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) issued a proposed rule to curb the proliferation of ghost guns—privately made firearms that are increasingly being recovered at crime scenes across the United States. Ghost guns generally do not have a serial number placed on the frame or receiver of the firearm. As a result, law enforcement faces obstacles when trying to determine where, by whom, or when these deadly ghost guns were manufactured, and to whom they were sold or otherwise disposed.
Yesterday, following a thorough and extensive public comment period, the Department announced the final rule. We commend our law enforcement partners at ATF for this important, life-saving new rule. The U.S. Attorney’s Office for the Eastern District of New York will use every tool at its disposal—both criminal and civil—to eliminate the scourge of illegal guns across New York City and across the country.
Northrop Grumman Agrees to Pay the United States $35 Million for Cleanup Costs at Bethpage Site CostsRead the Press Release
Breon Peace, United States Attorney for the Eastern District of New York, and Karnig Ohannessian, Deputy Assistant Secretary of the Navy (Environment & Mission Readiness), announced today that Northrop Grumman has agreed to pay the United States $35 million for environmental cleanup costs incurred as a result of operations at the former Naval Weapon Industrial Reserve Plant (NWIRP) in Bethpage, New York, and adjacent facilities (Sites). The payment resolves a civil lawsuit brought by the United States against Northrop Grumman under the federal Comprehensive Environmental Response, Compensation and Liability Act (CERCLA).
“This settlement compensates the United States for some of the enormous costs it has expended in connection with the cleanup of the former Naval Weapon Industrial Reserve Plant in Bethpage,” stated United States Attorney Peace. “The government’s remediation at the site restores natural resources, including land and groundwater in the area, and ensures public health and safety.”
A Consent Judgment setting forth the terms of the settlement provides that Northrop Grumman and the Navy will continue their respective remedial actions associated with the Sites and coordinate their cleanup efforts to benefit the public.
The proposed Consent Judgment will be lodged with the District Court for a period of at least 30 days, and notice of the Consent Judgment will be published in the Federal Register. This will afford members of the public the opportunity to submit comments on the Consent Judgment to the Department of Justice prior to it seeking court approval of the settlement.
The NWIRP was a government-owned, contractor-operated facility where Northrop Grumman’s predecessors (collectively “Grumman”) designed and manufactured aircraft for the Navy. Grumman also owned the adjacent approximately 500-acre former Northrop Grumman Bethpage Facility Site, which included an 18-acre property, now part of the Bethpage Community Park. Grumman used the Sites for industrial and research purposes from the late 1930s through1996. Manufacturing and disposal practices at the Sites resulted in contamination of the soil and groundwater with hazardous substances, including volatile organic compounds (VOCs), polychlorinated biphenyls (PCBs) and metals.
The Navy began conducting investigations and assessments at the NWIRP in 1986, and the cleanup is ongoing. The Navy continues to implement its remedial actions, including for treatment of contaminated groundwater.
The Navy’s remediation efforts include:
- Remediation of contaminated soils and shallow groundwater at the NWIRP through soil excavation, use of a vapor extraction system to remove TCE contamination from the soil, and placement of soil covers and land use controls;
- Design, implementation, operation and maintenance of onsite groundwater extraction wells and treatment systems to capture and treat VOCs before they migrate off property;
- Off-property groundwater capture and treatment of hotspots to reduce contaminant mass in the plume and limit downgradient migration;
- Additional treatment wells to intercept, as practicable, the southern extent of the site-related groundwater plumes;
- Installation of groundwater monitoring wells and long-term monitoring;
- Investigation and remediation of site-related 1-4 dioxane in the groundwater;
- Development and implementation of a public water supply protection program.
In addition to the costs associated with such Navy cleanup activities, since 2010, the United States has incurred costs under several consent judgments with local water districts whose water supply wells are potentially affected by the plumes to ensure their continued provision of safe drinking water.
The case was handled by Assistant United States Attorneys Kathleen Mahoney and Matthew Silverman from the United States Attorney’s Office for the Eastern District of New York, and by Richard Green, Assistant Director for Affirmative Environmental Claims, Office of General Counsel, Naval Litigation Office, Department of the Navy.
Additional information concerning the Navy’s cleanup and site-related public engagement activities can be found online at: http://go.usa.gov/DyXF. The Navy also maintains a public repository of site-related materials at the Bethpage Public Library, 47 Powell Avenue, Bethpage, New York 11714, (516) 931-3907.
E.D.N.Y. Docket No. 22-CV-2101
Nine Members and Associates of Nationwide Sex Trafficking and Prostitution Enterprise Indicted on Racketeering and Related ChargesRead the Press Release
Defendant Instructed Enforcer: “If She Dares Fight Back, Beat Her More Viciously. Get Some Results from the Beating.”
A 20-count indictment was unsealed today in federal court in Brooklyn variously charging Siyang Chen, Siyu Chen, also known as “Ban Ban,” Bo Jiang, Meizhen Song, also known as “Die Die,” Rong Rong Xu, also known as “Eleanor,” Jiarun Yan, also known as “Raymond Yan” and “Mike,” Jilong Yu, Carlos Cury and Zerong Tang with racketeering, sex trafficking, Hobbs Act robbery and violent assaults. The operation was based in Queens, New York, but carried out crimes throughout the United States, including in Hawaii, Kansas, Michigan, Missouri, Nebraska, New Hampshire, Oregon, Texas and Washington. Eight defendants were arrested today and will be arraigned this afternoon before United States Magistrate Judge Roanne L. Mann.
Breon Peace, United States Attorney for the Eastern District of New York, and Michael J. Driscoll Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI) and Keechant L. Sewell, Commissioner, New York City Police Department (NYPD), announced the arrests and charges.
“As alleged, the defendants targeted vulnerable women for sex trafficking, and brutally assaulted the victims to enforce loyalty to the criminal enterprise. Human beings are not property, and the victims in this case, regardless of their immigration status, deserve to be free from violence and coerced sexual activity. It is our hope that today’s arrests will bring them some measure of justice for the horror that they have endured,” stated United States Attorney Peace. “This case is another example of our Office’s longstanding commitment to bringing to justice sex trafficking organizations that exploit and dehumanize victims for financial gain.”
“The conduct alleged today spells out years of abuse inflicted upon vulnerable women on behalf of those who orchestrated this nationwide sex trafficking and prostitution enterprise,” stated FBI Assistant Director-in-Charge. “Victims in this case should know the FBI’s Joint Asian Criminal Enterprise Task Force won’t tolerate the actions of those who offer the sexual activities of others in exchange for payment. If you’re a victim or have information to provide, we want to hear from you—regardless of your immigration status. Call us at 1-800-CALL-FBI or submit a tip online at tips.fbi.gov.”
“Our job is to ensure that anyone who would seek to profit through the abuse and exploitation of another human being be brought to justice swiftly and successfully,” stated NYPD Commissioner Sewell. “Today’s charges also further affirm the NYPD’s unwavering commitment to protecting the survivors of sex trafficking. To that end, I thank and commend the U.S. Attorney’s Office for the Eastern District and our partners at the FBI for their immeasurable support in building this critical case.”
As set forth in court filings, between April 2019 and September 2021, the defendants participated in a violent and organized racketeering enterprise, which operated a lucrative prostitution business throughout the United States. The enterprise recruited women, most of whom were from China and lacked legal status in the United States, to engage in prostitution for the enterprise. The victims were sometimes required to provide copies of their identification documents so that the defendants could maintain even more control over them. The enterprise arranged for the women to travel from New York to locations throughout the country, stay in hotels and enterprise-operated apartments for weeks at a time and engage in commercial sex. Members and associates of the organization collected money from the women and the organization then used those illicit proceeds to promote its sex trafficking and interstate prostitution activities — and enrich its members.
As alleged, between January 8, 2020 and September 1, 2021, members and associates of the enterprise directed and conducted more than 15 violent assaults of women across five states. The victims were Chinese women who the organization believed were providing commercial sex services on their own or for rival organizations. By committing these violent assaults, members of the organization sought to enforce discipline and believed their conduct would not be prosecuted because the victims were not U.S. citizens and were engaged in commercial sex work. Specifically, members and associates of the enterprise would direct individuals to pretend to be johns to gain access to their hotel rooms and, once inside, would restrain the women with zip-ties, beat them with hammers, bats and other blunt objects, and rob them. Members of the organization often encouraged increasingly severe beatings of the victims if the initial attack did not sufficiently injure them. In one phone message that was recovered by law enforcement, a member instructed the enforcer: “Beat [her] to death tomorrow. If she dares fight back, beat her more viciously. Get some results from the beating. Can’t waste the money.” In another recovered chat, a member advised, “One person choke her by her throat, the other person strike her four limbs to death. Definitely don’t make a sound. Beat her to the point where she can’t fight back.”
The charges in the indictment are allegations, and the defendants are presumed innocent unless and until proven guilty.
Mr. Peace praised the outstanding investigative work of the FBI and the NYPD. This investigation was aided by law enforcement agencies throughout the country. Mr. Peace expressed his thanks to the United States Attorney’s Office for the District of Nebraska, as well as the Oklahoma City and Manchester field offices of United States Homeland Security Investigations and United States Immigration & Customs Enforcement. In addition, local police departments across the United States provided invaluable assistance, including the Beaverton (Oregon) Police Department, Michigan State Police, Missouri Highway Patrol, Oklahoma City (Oklahoma) Police Department, Omaha (Nebraska) Police Department, Overland Park (Kansas) Police Department, Portland (Oregon) Police Department, Southfield (Michigan) Police Department, and Troy (Michigan) Police Department.
The government’s case is being prosecuted by the office’s Organized Crime and Gangs and Civil Rights Sections. Assistant United States Attorneys Matthew R. Galeotti, Kayla C. Bensing and Sophia M. Suarez are in charge of the prosecution.
The FBI’s New York Joint Asian Criminal Enterprise Task Force believes this enterprise may be responsible for the assaults of even more commercial sex workers throughout the country. If you are a victim or have information to provide, there are several ways to contact the FBI: send a tip online at https://tips.fbi.gov/ or call 1-800-CALL-FBI. They have people ready to work with you in your native language, regardless of your immigration status. Please select English when prompted and ask the operator for a translator by stating your language of choice. Online tips may be submitted in any language. In an emergency, always call 911 for the police.
The Defendants:
SIYANG CHEN
Age: 32
Queens, New YorkSIYU CHEN, also known as “Ban Ban,”
Age: 24
Queens, New YorkBO JIANG
Age: 26
Queens, New YorkMEIZHEN SONG, also known as “Die Die,”
Age: 23
Dallas, TexasRONG RONG XU, also known as “Eleanor,”
Age: 29
Queens, New YorkJIARUN YAN, also known as “Raymond Yan” and “Mike,”
Age: 28
Queens, New YorkJILONG YU
Age: 23
Dallas, TexasCARLOS CURY
Age: 41
Queens, New YorkZERONG TANG
Age: 24
Queens, New YorkStatement of United States Attorney Breon Peace on the Verdict in United States v. EscobarRead the Press Release
“I am Breon Peace, the United States Attorney for the Eastern District of New York.
Five years ago today, on April 11, 2017, the defendant Leniz Escobar lured five young men to a park not far from the federal courthouse in Central Islip, Long Island. Those five young men, in the prime of their lives, had no idea that Escobar was leading them to their death—into a killing field where MS-13 gang members lay in wait, armed with machetes, an axe, knives, tree limbs, and a chisel. One of the young men managed to escape and lived to tell his story to a federal jury. His four friends were not so fortunate. Escobar’s cohorts hacked and beat them to death. One of the murder victims was so disfigured he was only identifiable by dental records.
Today, on the five-year anniversary of this tragic mass murder, a federal jury delivered justice to Escobar. Our hearts go out to the families of the victims. We know that the verdict does not erase the pain you wake up with every day and will always carry with you. But, we hope that this day brings some measure of consolation.
My Office, and all our law enforcement partners on the FBI’s Long Island gang task force will not rest until every single MS-13 gang member and associate responsible for this horrendous crime is held accountable. I am so grateful for my amazing team – prosecutors Paul Scotti, Justina Geraci, and Megan Farrell, paralegal Shernita Moore-Glasgow, along with the FBI special agents and the Suffolk County detectives who did such great work on this important case.
Finally, I want to thank the jury. They came from all over our District to the courthouse for three weeks during a pandemic. They were committed to serve, to do justice and that is exactly what they did.”
Click here for a video of the statement.
MS-13 Gang Associate Convicted of Racketeering and the Murders of Four Young Men in a Central Islip Park in 2017Read the Press Release
A federal jury in Central Islip returned a guilty verdict today against Leniz Escobar, an associate of the Leeward Locos Salvatruchas (“Leeward”) and Brentwood Locos Salvatruchas (“Brentwood”) cliques of La Mara Salvatrucha, also known as the MS-13, a transnational criminal organization. Escobar was convicted of racketeering, including predicate acts of murder, conspiracy to murder rival gang members, and obstruction of justice; and murder in aid-of racketeering, in connection with her participation in the April 11, 2017 murders of Justin Llivicura, Michael Lopez, Jorge Tigre and Jefferson Villalobos. The verdict followed a four-week trial before United States Circuit Judge Joseph F. Bianco. When sentenced, Escobar faces up to life in prison.
Breon Peace, United States Attorney for the Eastern District of New York, Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Rodney K. Harrison, Commissioner, Suffolk County Police Department (SCPD), announced the verdict.
“With today’s verdict, Escobar has been held responsible for the crucial role that she willingly played in orchestrating one of the most vicious and senseless mass murders in the district in memory,” stated United States Attorney Peace. “The defendant showed utter disregard for human life by leading the victims into a killing field, to their slaughter, to enhance her stature with her fellow cold-blooded murderers within the MS-13 gang. It is my hope that Escobar’s conviction will bring some measure of closure to the relatives of the victims and serve as a warning to other gang members that this Office, together with our law enforcement partners, will not rest until everyone responsible for these murders is held accountable and the MS-13 no longer poses a danger to our district.”
Mr. Peace expressed his thanks to the members of the FBI’s Long Island Gang Task Force for their outstanding work on the case.
“As proven at trial, Ms. Escobar played a crucial role in a heinous and senseless crime, the 2017 slayings of four young men believed by MS-13 to be members of a rival gang. Subsequent to the murders she continued to demonstrate her callous disregard for human life when she boasted about her role in the killings to enhance her stature within the gang. While nothing can bring the victims back, it is our hope that today’s verdict can bring their families a measure of comfort, knowing justice has been served,” stated FBI Assistant Director-in-Charge Driscoll.
“Today’s verdict sends a clear message that those who associate with a gang will be held accountable for their involvement with gang activity,” stated SCPD Commissioner Harrison. “Escobar showed a complete disregard for human life and put her allegiance to the gang ahead of the rule of law. I applaud all those involved from the Suffolk County Police Department, the FBI and our partners in law enforcement for their hard work and dedication to justice.”
The evidence at trial proved that on the evening of April 11, 2017, Escobar, also known as “Diablita,” and a co-conspirator, Keyli Gomez, lured five young men, including the four murder victims, to a park in Central Islip where they were attacked by members of the MS-13. The MS-13 members believed the victims to be members of a rival gang, at least two of whom had disrespected the MS-13 by posting photos on social media in which they wore certain items and flashed hand signs that signified membership in the MS-13 gang. Escobar and Gomez showed the gang-related photos to members of the MS-13, who confirmed the young men did not belong to MS-13, and it was decided that the victims would be killed. Gomez testified at the trial that she and Escobar drove with the victims to the park, led them to a predetermined wooded area, and sent the MS-13 members text-messages notifying them of their arrival. The MS-13 members and associates proceeded to the designated location and encircled the victims under the cover of darkness. One of the intended victims immediately fled and was able to escape. Llivicura, Lopez, Tigre and Villalobos were surrounded by MS-13 members, who attacked them with machetes, knives, an axe, and wooden clubs. After the attack, the MS-13 members dragged the victims’ bodies to a more secluded spot in the woods, piled them up, and then fled. The victims’ bodies were discovered the following evening.
In the days following the murders, Escobar bragged to other MS-13 members about her role in the killings and, in recorded calls with her boyfriend, who was a high-ranking member of the Brentwood clique, discussed the attack in detail. Using barely coded language, and referring to the victims who were killed, she said, “four individuals took the train and who knows when they’ll be back, got me?” Escobar then shared how that plan went awry when one person escaped, adding “But one of them, one of them managed to still be here on the map” and “he knows stuff about me.” In a separate call, Escobar told her boyfriend that she was “happy for this to happen.” Of the four victims, she said they were “never coming back . . . somewhere else . . . seeing the light . . . no more . . . out of here . . . not on the map.”
Additionally, Escobar destroyed evidence of her involvement in the murders by disposing of a sweatshirt stained with the blood of a victim, tossing her cellular phone from a moving vehicle when she was being followed by the police, and falsely telling detectives that she and Gomez were victims of a random robbery in the park on the night of the murders. Gomez pleaded guilty to racketeering charges in connection with the murders and is awaiting sentencing.
More than a dozen MS-13 members and associates have been charged in connection with the April 11, 2017 murders.
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:
LENIZ ESCOBAR
Age: 22
Islip Terrace, New YorkE.D.N.Y. Docket No. 21-CR-101 (JFB)
Declaración del Fiscal de los Estados Unidos Breon Peace sobre United States v. Leniz EscobarRead the Press Release
“Soy Breon Peace, el Fiscal de los Estados Unidos para el Distrito Este de Nueva York.
Hoy hace cinco años, el 11 de abril de 2017, la acusada, Leniz Escobar, atrajo a cinco jóvenes a un parque no muy lejos de la corte federal en Central Islip, Long Island.
Esos cinco jóvenes, en la plenitud de la vida, no tenían idea de que Escobar los estaba llevando a la muerte—a un campo de exterminio donde miembros de la pandilla MS-13 esperaban al acecho, armados con machetes, un hacha, cuchillos, ramas y un cincel.
Uno de los jóvenes se las arregló para escapar y vivió para contar su historia a un jurado federal. Sus cuatro amigos no fueron tan afortunados. Los secuaces de Escobar los machetearon y golpearon hasta matarlos. Una de las víctimas del asesinato quedó tan desfigurado que solo pudo ser identificado a través de registros dentales.
Hoy, en el quinto aniversario de ese trágico asesinato en masa, un jurado federal ha hecho justicia con Escobar.
Nuestros sentimientos están con las familias de las víctimas. Sabemos que el veredicto no borra el dolor con el que despiertan cada mañana y que siempre llevarán con ustedes. Pero esperamos que este día les provea un poco de consuelo.
Mi oficina (la fiscalía de los Estados Unidos) y todos nuestros colegas agentes del orden en la fuerza de tarea contra pandillas del FBI en Long Island, no descansaremos hasta que cada uno de los miembros y asociados de la pandilla MS-13 responsables por este horrendo crimen respondan por él.
Estoy muy agradecido por mi asombroso equipo - fiscales Paul Scotti, Justina Geraci y Megan Farrell, paralegal Shernita Moore-Glasgow, junto a los agentes especiales del FBI y a los detectives del condado de Suffolk, quienes hicieron un gran trabajo en este importante caso.
Finalmente, quiero agradecer al jurado. Vinieron de todas partes de nuestro distrito al tribunal por tres semanas durante una pandemia. Estaban comprometidos a servir, a hacer justicia, y eso es exactamente lo que hicieron.”
El video de la declaración esta aquí.
Statement of United States Attorney Breon Peace on the Verdict in U.S. v. Roger NgRead the Press Release
“A short time ago, a federal jury in Brooklyn convicted former Goldman Sachs managing director Roger Ng of participating in a bribery and money laundering scheme related to a Malaysian investment development fund known as 1MDB.
The scheme was massive in its scale – the defendant and his co-conspirators embezzled billions of dollars from the fund. It was brazen in its execution – Ng obtained lucrative business for his employer by bribing a dozen government officials in Malaysia and Abu Dhabi. And it was obscene in its greed.
Today’s verdict is a victory for not only the rule of law, but also for the people of Malaysia for whom the fund was supposed to help, by raising money for projects to develop their country’s economy. The defendant and his cronies saw 1MDB not as an entity to do good for the people of Malaysia, but as a piggy bank to enrich themselves with piles of money siphoned from the fund.
Between 2012 and 2013, the defendant, Roger Ng, received more than $35 million in kickbacks for his role in the scheme to steal and launder billions of dollars from 1MDB, including funds 1MDB raised in 2012 and 2013 through three bond transactions and to use that money for bribes. Ng also conspired to circumvent Goldman Sachs’s internal accounting controls to ensure that Goldman Sachs would approve the three bond deals that were critical to the scheme. Ng conspired with others to launder the proceeds through the United States financial system by purchasing, among other things, luxury real estate in New York City, valuable artwork, jewelry, and funding Hollywood films like “The Wolf of Wall Street.”
In another film made about Wall Street, not related to the criminal scheme in this case, a character infamously suggested that greed is good. But, greed is not good, particularly when it leads to corruption and abuse, circumvention of corporate policies and controls, and the violation of federal law. With today’s verdict, a powerful message has been delivered to those who commit financial crimes motivated by greed. You will be caught, prosecuted and convicted, like Ng, and face a long prison sentence.
This case was a team effort by prosecutors from my Office, Alixandra Smith, Drew Rolle and Dylan Stern along with trial attorneys Brent Wible and Jennifer Ambuehl from the Department of Justice’s Criminal Division, FBI Special Agents Sean Fern, Ryan Collins and Jarrett Brown, FBI forensic accountant Eric Van Dorn, FBI Supervisory Special Agent Robert Heuchling, and Special Agent Marty Sullivan from the Eastern District of New York. They were assisted by EDNY paralegal Daniel Youkilis and Criminal Division paralegals Robert Dwyer and Lianis Marrero Mendez. Their work was outstanding.
And finally, I commend the jury for their attention to the evidence, their dedicated service over the past seven weeks, during a pandemic, and their commitment to do justice.”
Click here for the video of the statement.
Queens Man Sentenced to 55 Years in Prison for Sexually Exploiting ChildrenRead the Press Release
Earlier today, at the federal courthouse in Brooklyn, Orlando Lopez was sentenced by United States District Judge Eric R. Komitee to 55 years’ imprisonment for nine counts of child exploitation and one count of possession of child pornography. Lopez was also ordered to pay restitution to his victims. Lopez pleaded guilty to the charges in July 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.
“The defendant raped and sexually abused numerous vulnerable children, many of them infants and toddlers, for his own gratification,” stated United States Attorney Peace. “Although today’s lengthy sentence cannot undo the harm that he inflicted on the victims and their families, it represents some measure of justice for his horrific crimes and ensures that no more children will suffer at the hands of this predator.”
Mr. Peace expressed his appreciation to the Queens County District Attorney’s Office for their assistance with the prosecution.
“The conduct for which Mr. Lopez was convicted is among the most depraved our experienced investigators have ever encountered. Prior to law enforcement intervention, he raped and sexually exploited children - some of whom were infants when their abuse began - for more than a decade,” said Assistant Director-in-Charge Driscoll. “Today's sentence insures he will never harm another child, and our hope is that it brings some measure of comfort to his victims and their families as they continue their recovery from the harm he inflicted upon them.”
Beginning in approximately 2008, and for more than a decade, Lopez raped and sexually exploited children who lived at or near his apartment building in Jamaica, Queens, and took video and photographs of the abuse. Lopez typically abused his victims in his apartment or their residence, but on occasion abused them in other locations, including a local YMCA facility. During the sexual abuse, Lopez sometimes attempted to distract his child victims by providing them with candy or toys.
Law enforcement recovered approximately 13,000 files of child pornography from Lopez’s residence depicting sexual activity with at least 15 child victims, some of whom were infants with the abuse began. Lopez distributed some of the child pornography he created to others.
This prosecution is part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc
Assistant United States Attorney Tanya Hajjar is in charge of the prosecution.
The Defendant:
ORLANDO LOPEZ
Age: 66
Jamaica, QueensE.D.N.Y. Docket No. 20-CR-52 (EK)
Former Village of Brewster Police Department Officer Pleads Guilty to Bribery SchemeRead the Press Release
Earlier today, in federal court in Brooklyn, Wayne Peiffer, a former police officer in Brewster, New York, pleaded guilty to conspiracy to commit Hobbs Act extortion and conspiracy to commit bribery in violation of the Travel Act. Peiffer was charged for his role in protecting two Queens-based prostitution businesses from law enforcement when operating in Brewster, in exchange for free sexual services. Today’s proceeding was held before United States Chief Magistrate Judge Cheryl L. Pollak. When sentenced, Peiffer faces up to 25 years in prison and forfeiture of $5,000.
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), Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Keechant L. Sewell, Commissioner, New York City Police Department (NYPD), announced the guilty plea.
“The defendant disgraced his sworn oath to protect and serve the community by using his badge as a shield for prostitution rings in exchange for sexual services from victims of sex trafficking,” stated United States Attorney Peace. “Rooting out official corruption and protecting victims and survivors of trafficking are top priorities of this Office.”
Mr. Peace expressed his appreciation to the Putnam County District Attorney’s Office and the Putnam County Sheriff’s Department for their assistance throughout this investigation.
“Sex trafficking and forced prostitution are crimes against the body and soul that shock the conscience of society,” stated HSI Acting Special Agent-in-Charge Patel. “For years, Wayne Peiffer abused his position as a law enforcement officer and betrayed the trust given to him by society, taking sexual favors from the women he was sworn to protect. Due to the hard work of HSI, EDNY prosecutors, and our law enforcement partners, Peiffer has pleaded guilty to his crimes and his network of violators has been dismantled. HSI will vigorously pursue criminals like Peiffer, whether they operate in the U.S. or abroad.”
“Corruption is a crime and a stark violation of a police officer’s sacred oath,” stated NYPD Commissioner Sewell. “With today’s guilty plea, this former officer admitted to disgracing his shield and betraying the public trust. The NYPD and our law-enforcement partners will continue to proactively identify and expose such unethical and immoral behavior committed by anyone sworn to enforce and uphold the law.”
According to court documents and facts presented during today’s proceeding, from approximately 2010 through October 2018, Peiffer provided protection to members of a prostitution business and a sex trafficking organization that each transported women from Queens to Brewster, New York, for the purposes of engaging in prostitution. Peiffer’s protection included advance notice of law enforcement activities and assistance with avoiding detection and apprehension. In exchange, Peiffer directed members of the prostitution business and sex trafficking organization to deliver women to him, including at the Brewster Police Department station, for free sexual services.
The government’s case is being prosecuted by the office’s Civil Rights Section. Assistant United States Attorneys Lauren H. Elbert, Nicholas J. Moscow and Rachel A. Bennek are in charge of the prosecution.
The Defendant:
WAYNE PEIFFER
Age: 48
Highland, New YorkE.D.N.Y. Docket No. 21-CR-622 (LDH)
Former Goldman Sachs Investment Banker Convicted in Massive Bribery and Money Laundering SchemeRead the Press Release
BROOKLYN, NY – Ng Chong Hwa, also known as “Roger Ng,” a citizen of Malaysia and a former Managing Director of The Goldman Sachs Group, Inc. (Goldman Sachs), was convicted today by a federal jury in Brooklyn on all counts of a superseding indictment charging him with conspiring to launder billions of dollars embezzled from 1Malaysia Development Berhad (1MDB), conspiring to violate the Foreign Corrupt Practices Act (FCPA) by paying bribes to a dozen government officials in Malaysia and Abu Dhabi, and conspiring to violate the FCPA by circumventing the internal accounting controls of Goldman Sachs. The verdict followed a seven-week trial before United States Chief District Judge Margo K. Brodie.
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 Korner, Special Agent-in-Charge, Internal Revenue Service Criminal Investigation, Los Angeles Field Office (IRS-CI), announced the verdict.
“Today’s verdict is a resounding victory for justice and for the people of Malaysia who were the victims of this massive scheme that the defendant and his partners in crime carried out in a frenzy of greed to get rich by stealing millions of dollars from the 1MDB fund intended to benefit that country’s economy,” stated United States Attorney Peace. “The Department of Justice and this Office are committed to addressing corporate culture by vigorously combating white-collar crime and holding corrupt individuals who seek to enrich themselves accountable for violating U.S. laws here and abroad.”
“Roger Ng participated in a massive bribery and money laundering scheme involving the corruption of high-level foreign officials in Malaysia and the United Arab Emirates,” stated Assistant Attorney General Polite. “This trial demonstrates the commitment by the Department of Justice to prosecute and hold accountable individuals who engage in corruption and use our financial system to launder funds related to their illicit schemes. We will continue to pursue criminal wrongdoers and will seek to bring them to justice, wherever they are, deprive them of their ill-gotten gains, and, wherever possible, return corrupt proceeds to those harmed by corruption — as we have throughout our longstanding investigation into the 1MDB scheme.”
“By virtue of today’s verdict, Roger Ng stands convicted of significant crimes for his role in a conspiracy to launder billions of dollars misappropriated from 1MDB, a Malaysian state-owned fund created to pursue economic growth opportunities for Malaysia and its people. While Ng and his associates greedily lined their pockets, the Malaysian people were left as victims who potentially suffered lost economic growth opportunity. The FBI and our partners remain committed to identifying those who choose to engage in foreign corrupt practices and bringing justice to them around the world,” stated FBI Assistant Director-in-Charge Driscoll.
“Today’s conviction of Roger Ng demonstrates the cooperation of law enforcement and prosecutorial agencies around the world to combat foreign corruption. Roger Ng and his co-conspirators enriched themselves while depriving the citizens of Malaysia of billions of dollars that was supposed to be invested on their behalf,” stated IRS-CI Special Agent-in-Charge Ryan L. Korner. “The Internal Revenue Service-Criminal Investigation is proud to stand with our law enforcement partners in the United States and around the world who participated in this most significant investigation.”
1MDB is a Malaysian state-owned and controlled fund created to pursue investment and development projects for the economic benefit of Malaysia and its people.
Ng was employed as a Managing Director by various subsidiaries of Goldman Sachs and acted as an agent and employee of Goldman Sachs from approximately 2005 to May 2014.
As proved at trial, between approximately 2009 and 2014, Ng conspired with others to launder billions of dollars misappropriated and fraudulently diverted from 1MDB, including funds 1MDB raised in 2012 and 2013 through three bond transactions it executed with Goldman Sachs, known as “Project Magnolia,” “Project Maximus” and “Project Catalyze.” As part of the scheme, Ng and others, including Tim Leissner, the former Southeast Asia Chairman and participating managing director of Goldman Sachs, conspired to pay more than a billion dollars in bribes to a dozen government officials in Malaysia and Abu Dhabi to obtain and retain lucrative business for Goldman Sachs, including the 2012 and 2013 bond deals. They also conspired to launder the proceeds of their criminal conduct through the U.S. financial system by funding major Hollywood films such as “The Wolf of Wall Street,” and purchasing, among other things, artwork from New York-based Christie’s auction house including a $51 million Jean-Michael Basquiat painting, a $23 million diamond necklace, millions of dollars in Hermes handbags from a business based on Long Island, and a luxury real estate in Manhattan.
Ng, co-defendant Low Taek Jho, a wealthy Malaysian socialite also known as “Jho Low,” and their co-conspirators used Low’s close relationships with high-ranking government officials in Malaysia and Abu Dhabi to obtain and retain business for Goldman Sachs through the promise and payment of hundreds of millions of dollars in bribes. In the course of executing the scheme, Ng conspired with others at Goldman Sachs to circumvent the investment bank’s internal accounting controls. Through its work for 1MDB during that time, Goldman Sachs received approximately $600 million in fees and revenues, while Ng received $35 million for his role in the bribery and money laundering scheme. In total, Ng and the other co-conspirators misappropriated more than $2.7 billion from 1MDB.
The evidence at trial included testimony from 26 witnesses called by the government; emails, phone records and bank records showing the defendant’s share of the scheme’s criminal proceeds was transferred to a bank account held by an offshore shell company in the name of the defendant’s mother-in-law; travel records; and receipts for luxury items purchased with the criminal proceeds.
Low remains a fugitive. In August 2018, Leissner pleaded guilty to a two-count criminal information charging him with conspiring to launder money and conspiring to violate the FCPA by both paying bribes to various Malaysian and Abu Dhabi officials and circumventing the internal accounting controls of Goldman Sachs. Leissner has been ordered to forfeit $43 million and shares of stock valued at more than $200 million. Leissner is awaiting sentencing.
In October 2020, Goldman Sachs and Goldman Sachs (Malaysia) Sdn. Bhd. (GS Malaysia), its Malaysian subsidiary, admitted to conspiring to violate the anti-bribery provisions of the FCPA in connection with the scheme. Goldman Sachs entered into a deferred prosecution agreement with the United States Attorney’s Office for the Eastern District of New York and the Department of Justice’s Criminal Division, Fraud Section and Money Laundering and Asset Forfeiture (MLARS), and GS Malaysia pleaded guilty in the U.S. District Court for the Eastern District of New York to a one-count criminal information. Goldman Sachs also paid more than $2.9 billion as part of a coordinated resolution with criminal and civil authorities in the United States, the United Kingdom, Singapore, and elsewhere.
The investigation was jointly conducted by the FBI’s International Corruption Unit and IRS-Criminal Investigation. The government’s criminal case is being handled by the Business and Securities Fraud Section of the United States Attorney’s Office for the Eastern District of New York and the Criminal Division’s Money Laundering and Asset Recovery Section (MLARS) and Fraud Section. Assistant United States Attorneys Alixandra E. Smith, Drew G. Rolle and Dylan Stern, and Bank Integrity Unit Chief Jennifer E. Ambuehl of MLARS and Co-Principal Deputy Chief of the Fraud Section Brent Wible are prosecuting the case. The Criminal Division’s Office of International Affairs provided critical assistance in this case.
The Department also appreciates the significant cooperation and assistance provided by the U.S. Securities and Exchange Commission, and the Board of Governors of the Federal Reserve System along with the Federal Reserve Bank of New York. The Department also appreciates the significant assistance provided by the government of Malaysia, including the Attorney General’s Chambers of Malaysia, the Royal Malaysia Police and NCB Interpol Malaysia. The Department also appreciates the significant assistance provided by the Attorney General’s Chambers of Singapore, the Singapore Police Force-Commercial Affairs Division, the Office of the Attorney General of Switzerland, the Judicial Investigating Authority of the Grand Duchy of Luxembourg and the Criminal Investigation Department of the Grand-Ducal Police of Luxembourg.
The Defendant:
NG CHONG HWA (also known as “Roger Ng”)
Age: 49
Kuala Lumpur, MalaysiaE.D.N.Y. Docket No. 18-CR-538 (MKB)
U.S. Citizen Sentenced to 20 Years’ Imprisonment for Attempting to Provide Material Support to ISISRead the Press Release
Earlier today in federal court in Brooklyn, Bernard Raymond Augustine was sentenced by United States District Judge Sterling Johnson, Jr. to 20 years’ imprisonment for attempting to provide material support to a designated foreign terrorist organization, the Islamic State of Iraq and al-Sham (“ISIS” or “the Islamic State”). Augustine, a U.S. citizen and California resident, was convicted by a federal jury after a one-week trial in August 2021.
Breon Peace, United States Attorney for the Eastern District of New York, Matthew G. Olsen, Assistant Attorney General of the Justice Department’s National Security Division, Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Keechant L. Sewell, Commissioner, New York City Police Department (NYPD), announced the sentence.
“Today’s sentence ensures this dangerous defendant will not join ISIS as he tried to do in 2016, and testified at trial that he would do again if the jury acquitted him. The trial evidence demonstrated that Augustine is a committed supporter of ISIS, that he glorified beheadings and other acts of terror, and that he intended to support the terrorist organization by encouraging more English speakers to join its ranks,” stated United States Attorney Peace. “Detecting and thwarting terrorism and keeping the people of this country safe will always be priorities of this Office.” Mr. Peace praised the work of the FBI’s New York Joint Terrorism Task Force on the case.
“The sentence Mr. Augustine received today insures he will never achieve his stated ambition of joining ISIS and supporting the terrorist group's pursuit of its reprehensible goals. Protecting our nation from terrorism in all its forms remains the FBI's top priority, and today's outcome is the latest example of our commitment to pursuing this mission both domestically and globally,” stated FBI Assistant Director-in-Charge Driscoll.
“Protecting our nation’s security is paramount, and this case illustrates our continued commitment to fight terrorism in every form, both here and abroad,” stated NYPD Commissioner Sewell. “Any person who puts American lives at risk will be held accountable to the fullest extent of the law, and I want to thank the U.S. Attorney’s Office for the Eastern District of New York, the Justice Department’s National Security Division, the Federal Bureau of Investigation, the members of the FBI/NYPD Joint Terrorism Task Force, and everyone else who prevented this threat and kept Americans safe.”
The evidence at trial established that in February 2016, Augustine traveled from San Francisco, California to Northern Africa, with the goal of joining ISIS, a designated foreign terrorist organization. After arriving in Tunisia, Augustine was detained by local authorities before he could make it to ISIS-controlled territory across the border in Libya. He was returned to the United States in 2018 and prosecuted in the Eastern District of New York.
In the months leading up to his travel, Augustine watched ISIS propaganda, including videos glorifying ISIS’s violence, such as “The Flames of War.” He conducted internet searches for, among other things, “how to safely join ISIS,” and reviewed websites related to ISIS recruitment practices, including one titled “How does a Westerner join ISIS? Is there a recruitment or application process?” Augustine also posted numerous statements in support of ISIS and violent extremism, such as “the Islamic State is the true Islam,” “Muslims who leave the west . . . answer the call for the struggle, and march until they are victorious or martyred are the true believers,” and the ISIS caliphate “can’t be established and maintained except through the blood of the mujahideen who practice the true belief.”
The defendant represented himself at trial and testified that he maintained his interest in supporting ISIS. Augustine testified that ISIS videos of members executing Syrian captives and beheadings were “good” and “really cool.” He admitted that one way he intended to provide material support to ISIS was to participate in ISIS propaganda videos, by providing the necessary English-language voice over. When asked to confirm his testimony that he “would do it all again and would go back today,” Augustine responded, “No, tomorrow, when they let me off.”
The government’s case is being handled by the Office’s National Security and Cybercrime Section. Assistant United States Attorneys Craig R. Heeren, Josh Hafetz, and Jonathan E. Algor are in charge of the prosecution, with assistance provided by Trial Attorney Justin Sher of the Counterterrorism Section of the Department of Justice.
The Defendant:
BERNARD RAYMOND AUGUSTINE
Age: 25
Keyes, CaliforniaE.D.N.Y. Docket No. 18-CR-383 (SJ)
Man Sentenced to 20 Years in Prison for Attempting to Provide Material Support to ISISRead the Press Release
A California man was sentenced today to 20 years in prison for attempting to provide material support to a designated foreign terrorist organization, the Islamic State of Iraq and al-Sham, aka ISIS.
Bernard Raymond Augustine, 25, of Keyes, was convicted by a federal jury after a one-week trial in August 2021.
According to court documents and evidence presented at trial, in February 2016, Augustine traveled from San Francisco to Northern Africa with the goal of joining ISIS. After arriving in Tunisia, Augustine was detained by local authorities before he could make it to ISIS-controlled territory across the border in Libya. He was returned to the United States in 2018 and prosecuted in the Eastern District of New York.
In the months leading up to his travel, Augustine watched ISIS propaganda, including videos glorifying ISIS’s violence, such as “The Flames of War.” He conducted internet searches for, among other things, “how to safely join ISIS,” and reviewed websites related to ISIS recruitment practices, including one titled, “How does a Westerner join ISIS? Is there a recruitment or application process?” Augustine also posted numerous statements in support of ISIS and violent extremism, such as “the Islamic State is the true Islam,” “Muslims who leave the west . . . answer the call for the struggle, and march until they are victorious or martyred are the true believers,” and the ISIS caliphate “can’t be established and maintained except through the blood of the mujahideen who practice the true belief.”
The defendant represented himself at trial and testified that he maintained his interest in supporting ISIS. Augustine testified that ISIS videos of members executing Syrian captives and beheadings were “good” and “really cool.” He admitted that one way he intended to provide material support to ISIS was to participate in ISIS propaganda videos by providing the necessary English-language voice over. When asked to confirm his testimony that he “would do it all again and would go back today,” Augustine responded, “No, tomorrow, when they let me off.”
Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division, U.S. Attorney Breon Peace for the Eastern District of New York, Assistant Director-in-Charge Michael J. Driscoll of the FBI’s New York Field Office and Commissioner Keechant L. Sewell of the New York City Police Department made the announcement.
The FBI investigated the case.
Assistant U.S. Attorneys Craig R. Heeren, Josh Hafetz and Jonathan E. Algor for the Eastern District of New York prosecuted the case, with valuable assistance provided by Trial Attorney Justin Sher of the National Security Division’s Counterterrorism Section.
Two New York City Correction Officers Among Six Defendants Charged with Conspiring to Accept Bribes and Smuggle Contraband into Rikers Island Facilities for Gang MembersRead the Press Release
Two criminal complaints were unsealed today in federal court in the Eastern District of New York charging six defendants with conspiring to bribe correction officers employed by the New York City Department of Corrections (DOC) as part of contraband smuggling conspiracies. Correction Officers Krystle Burrell and Katrina Patterson, as well as Ashley Medina, Imani Matthews and Terrae Hinds were arrested earlier today, and their initial appearances are scheduled for this afternoon before United States Magistrate Judge Lois Bloom. Defendant Michael Ross is currently in New York State custody and will make his initial appearance at a later date.
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 Field Office (HSI), Jocelyn E. Strauber, Commissioner, New York City Department of Investigation (DOI), and Keechant L. Sewell, Commissioner, New York City Police Department (NYPD) announced the arrests and charges.
“The defendants, public servants on the City’s payroll, allegedly smuggled contraband, including cell phones and drugs, to incarcerated gang members at Rikers Island. The flow of contraband into our jails is a serious problem which puts inmates, fellow officers and potentially the public at risk,” stated United States Attorney Peace. “We will continue to root out corruption at Rikers Island and work to protect incarcerated individuals and correction officers in our jails.”
“As alleged, Burrell and Patterson, both New York City Correctional Officers, brought shame and disgrace to New York’s Boldest by putting the safety of fellow officers and inmates at risk by conspiring to introduce contraband at Rikers Island Correctional Facilities on behalf of known Bloods Gang members,” said HSI New York Acting Special Agent in Charge Patel. “The details in the complaint allege that both officers brazenly betrayed their oath to act with integrity and professionalism to create a safe environment in correctional facilities - their actions tarnish the great reputation of the men and women who put on the uniform of a New York City Correction Officer and risk their lives on a daily basis. HSI New York’s Violent Gang Task Force, with our local and federal partners, will continue to conduct violent crime and gang investigations throughout the New York City area to ensure those perpetrating criminal activities in any manner are held accountable.”
DOI Commissioner Strauber said, “As alleged, these correction officers facilitated the illegal entry of drugs and cellphones into the City’s jails in exchange for thousands of dollars in bribes, enriching themselves at the expense of the safety and security of inmates as well as their fellow officers. The contraband trade fuels violence that endangers inmates and staff, and undermines the rules and regulations intended to maintain order on Rikers Island. DOI is committed to continued collaboration with our law enforcement partners in the United States Attorney’s Office for the Eastern District of New York, the New York Field Office of Homeland Security Investigations, and the New York City Police Department to expose and stop this type of corruption that destabilizes the City’s jails.”
“The charges detailed in today’s federal complaints reflect an intolerable betrayal of public trust – including by those who allegedly abandoned their sworn oath to uphold the law,” said Police Commissioner Sewell. “I commend our NYPD officers, along with our law enforcement partners and the prosecutors in the U.S. Attorney’s Office for the Eastern District of New York, for working together to build this important case.”
HSI, DOI and the NYPD have been investigating contraband smuggling rings involving the payment of bribes to DOC officers in exchange for smuggling contraband, including unauthorized cell phones and narcotics, to Bloods gang members on Rikers Island.
As alleged in one complaint, New York City Correction Officer Katrina Patterson accepted at least $34,090 in bribes from Ashley Medina and Imani Matthews on behalf of Michael Ross in exchange for Patterson smuggling contraband into the Robert N. Davoren Center on Rikers Island for Ross. Ross, who was incarcerated on unrelated offenses, arranged for the bribes to be sent to Patterson. DOC subsequently located narcotics and cell phones in Ross’ cell. In addition to obtaining surveillance video from Rikers Island showing Patterson bringing unauthorized items to Ross, law enforcement also seized Patterson’s text messages, including messages with Matthews where Matthews told Patterson that some of the contraband would be “4 black joints in 1 paper,” and Patterson responded, “it better be wrapped so many times I don’t want to smell it.” Patterson and Matthews also discussed the need to delete their text messages.
As alleged in a separate complaint, New York City Correction Officer Krystle Burrell accepted bribes in exchange for smuggling contraband into the Anna M. Kross Center on Rikers Island for Terrae Hinds, facilitating Hinds’ contraband smuggling business and permitting Hinds and others to violate DOC regulations. Hinds, who was incarcerated on unrelated offenses, arranged for approximately $9,780 in bribe payments to be sent to Burrell. In exchange, Burrell smuggled at least two unauthorized cell phones to Hinds, and also facilitated Hinds’ sale of narcotics and other contraband items at the Anna M. Kross Center.
The charges in the complaints are allegations, and the defendants are presumed innocent unless and until proven guilty. If convicted, the defendants each face a maximum sentence of five years’ imprisonment.
The government’s case is being handled by the Office’s Public Integrity Section and prosecuted by Assistant United States Attorney Philip Pilmar.
The Defendants:
KATRINA PATTERSON
Age: 31
Jamaica, NYIMANI MATTHEWS
Age: 25
Bronx, NYASHLEY MEDINA
Age: 24
Bronx, NYMICHAEL ROSS
Age: 36
Comstock, NYE.D.N.Y. Docket No. 22-MJ-377
KRYSTLE BURRELL
Age: 35
Lawrence, NYTERRAE HINDS
Age: 28
Yonkers, NYE.D.N.Y. Docket No. 22-MJ-378
Brooklyn Man Charged with Production of Child PornographyRead the Press Release
A criminal complaint was unsealed today in federal court in Brooklyn charging Steven Labianca with the sexual exploitation of children. The charges relate to sexually explicit images and videos of children that the defendant requested and received from minors that he targeted on Skype. Labianca was arrested this morning and will make his initial appearance this afternoon before United States Magistrate Judge Lois Bloom.
Breon Peace, United States Attorney for the Eastern District of New York, and Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the charges.
“As alleged, Labianca preyed on minors online, developing a relationship with them first, then exploiting them by enticing the victims to take sexually explicit photos and videos of themselves for the defendant’s own personal gratification,” stated United States Attorney Peace. “Today’s arrest underscores the importance of monitoring our children’s Internet activity and teaching them to say ‘no’ to inappropriate requests in the real world and online. Fighting child exploitation is a priority for the Department of Justice and this Office will continue to make every effort to ensure that those who contribute to the victimization of children will be brought to justice.”
“The behavior in which we allege Mr. Labianca engaged - soliciting and receiving sexually-explicit images and videos from children as young as 13 - is depraved, and it underscores the dangers children may face online,” stated FBI Assistant Director-in-Charge Driscoll. “The action we've taken today will ensure Mr. Labianca faces justice for his crimes, but our investigation continues. We implore anyone who may have information about this case to call as at 1-800-CALL-FBI or reach us online at tips.fbi.gov.”
As set forth in court filings, Labianca was using a Skype account with the account name “Original Geek” and an Instagram account with the account name “haulsropefasterr.” Between April 2017 and February 2021, Labianca allegedly engaged in a series of sexually explicit Skype communications with at least eight underage victims, ages 13 to 17, who lived within the United States and abroad. Labianca directed the victims to perform sexual acts while participating in the video calls. Labianca also directed the children to take nude photos and videos of themselves and send them to him. Several victims did in fact send sexually explicit photos and videos to Labianca.
If convicted of sexual exploitation of a child, Labianca faces a mandatory minimum sentence of 15 years’ imprisonment. The charges in the complaint are allegations, and the defendant is presumed innocent unless and until proven guilty.
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 Public Integrity Section. Assistant United States Attorney Olatokunbo Olaniyan is in charge of the prosecution.
The Defendant:
STEVEN LABIANCA
Age: 49
Midwood, BrooklynE.D.N.Y. Docket No. 21-MJ-386
Brooklyn Man Pleads Guilty to Insider Trading and Tax EvasionRead the Press Release
Jason Peltz pleaded guilty today in federal court in Brooklyn to securities fraud and tax evasion in connection with an insider trading scheme in which Peltz executed securities transactions based on material nonpublic information (MNPI) from a company insider. The proceeding was held before United States District Judge Nicholas G. Garaufis. When sentenced, Peltz faces up to 25 years in prison, forfeiture of his ill-gotten gains, and restitution to the Internal Revenue Service (IRS) of over $1 million.
Breon Peace, United States Attorney for the Eastern District of New York, Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Thomas Fattorusso, Special Agent-in-Charge, IRS Criminal Investigation, New York (IRS-CI), announced the guilty plea.
“With today’s plea, Peltz admitted to trading on material nonpublic information about a publicly traded company to line his own pockets and also to lying about his income to avoid paying taxes on a substantial tax liability,” stated United States Attorney Peace. “This Office will vigorously prosecute traders who seek to cheat the system, harm the investing public and undermine the integrity of our financial markets. We will hold accountable those who lie to avoid paying their fair share of taxes.”
Mr. Peace thanked the Securities and Exchange Commission, New York Regional Office, for their assistance during the investigation.
“Plain and simple. It's illegal to use non-public information to buy and sell stocks. Doing so manipulates the markets and can have detrimental effects on the wallets of individuals who play by the rules. But this defendant didn't stop there, he made significant financial gains and then claimed that he had no income in an effort to blatantly evade taxes,” stated IRS-CI Special Agent-in-Charge Fattorusso.
In February 2016, Peltz obtained MNPI from an insider at Ferro Corporation (“Ferro”) about a potential takeover offer (the “Ferro Takeover Bid”). Peltz used that MNPI to:
- Profitably trade in Ferro in the brokerage accounts of two co-conspirators,
- Tip other individuals, each of whom also profitably traded on MNPI about the Ferro Takeover Bid, and
- Tip a reporter, who wrote an article making public the news of the Ferro Takeover Bid, which resulted in an increase in the price of Ferro’s stock.
Peltz and the Ferro insider each received significant financial benefits from other co-conspirators shortly after Peltz traded in those co-conspirators’ brokerage accounts, and Peltz continued to receive large payments from co-conspirators, as well as other benefits, as payment for his trading activity. Peltz directed that these payments be made to corporate and nominee bank and credit card accounts, in order to conceal his income from the IRS. Despite receiving such payments, in 2017 Peltz falsely swore under penalty of perjury to the IRS that he had been unemployed since December 2015 and had no income.
The government’s case is being handled by the Office’s Business and Securities Fraud Section. Assistant United States Attorneys Kaitlin T. Farrell, Sarah M. Evans, and Special Assistant United States Attorney Barry O’Connell are in charge of the prosecution, with assistance from Assistant United States Attorney Brian Morris of the Office’s Asset Recovery Section.
The Defendant:
JASON PELTZ
Age: 39
Brooklyn, New YorkE.D.N.Y. Docket No. 21-CR-154 (NGG)