Eastern District of New York
Press releases recorded for this federal judicial district.
Home Healthcare Agencies Settle Fraud Claims for $5.4 Million and Agree to Pay Wages and Benefits to Underpaid AidesRead the Press Release
Breon Peace, United States Attorney for the Eastern District of New York, and Letitia James, New York State Attorney General, announced today a pair of settlement agreements with two Brooklyn-based licensed home care services agencies (LHCSA), All American Homecare Agency (All American) and Crown of Life Care NY LLC (Crown of Life). The settlement agreements address allegations that All American and Crown of Life violated the federal False Claims Act and New York State’s False Claims Act in claiming that they paid their home care aides the minimum wages required under New York State law. The agencies received millions of dollars in funding from Medicaid, which is funded in part by the federal government, and much of that money was meant to pay the wages and benefits of their aides.
“It is outrageous to cheat home health aides of their hard earned benefits guaranteed under New York law and the Medicaid program,” stated United States Attorney Breon Peace. “These settlements reflect this Office’s firm commitment to preventing fraud in government programs and protecting home health aides—who perform physically and emotionally taxing work in caring for some of the members of our community most in need.”
Mr. Peace thanked the Medicaid Fraud Control Unit of the Office of the New York State Attorney General for its partnership in the government’s investigation and resolution of this important case.
“Home health aides provide critical care for our most vulnerable, and they must be fairly compensated for their work,” said Attorney General James. “Not only did these companies shamelessly cheat their workers, they also cheated our state and stole from communities that need it most. My office will never tolerate fraud of any kind, and we will continue to do everything we can to ensure that New Yorkers get their fair pay and treatment.”
The New York Wage Parity Act, Public Health Law sets minimum wage and benefit requirements for LHCSAs that employ home care aides who render services to Medicaid recipients in New York City and in Nassau, Suffolk or Westchester Counties. Under the Wage Parity Law, which is funded by Medicaid aides are to be paid a minimum amount in total compensation. That compensation comes in the form of a base wage and a supplemental benefit. The base wage must be paid in cash. The benefit portion can include the value of vacation, holiday, and sick pay, among other things. It can also include health insurance, pension plans, or educational assistance. Today, the minimum amount of total compensation for an aide in New York City is $19.09 per hour; for Nassau, Suffolk, and Westchester Counties, the minimum is $18.22 per hour.
Home health aides perform all aspects of personal care for sick or homebound patients and frequently work long shifts lasting up to 24 hours. The tasks performed in caring for patients are demanding and can consist of assisting or lifting patients out of bed and bathing, dressing, grooming, preparing meals and, in some instances, feeding them. Patients may suffer from physical or mental disorders that can make the work of the aides physically and emotionally taxing. In fact, it was in recognition of the difficulty of this work that New York passed the Wage Parity Law.
This Office, in coordination with the New York State Attorney General’s Office’s Medicaid Fraud Control Unit, commenced an investigation after whistleblowers alleged that certain LHCSAs had knowingly defrauded the federal government and New York State by underpaying home health aides in violation of New York’s Wage Parity Act. The government’s investigation revealed that All American and Crown of Life falsely certified their compliance with the law and sought and received reimbursement from Medicaid.
Under the terms of its agreements with the United States and New York State, All American has paid $1.6 million to the United States and $2.4 million to New York State. The settlement covers All American’s conduct in the years 2014 to 2017. Crown of Life has agreed to pay $560,000 to the United States and $840,000 to New York State, for conduct that took place in the years 2014 to 2018.
In addition to the payments to resolve the government’s fraud claims, All American and Crown of Life are now paying their aides the wages and benefits they were required to pay under the Wage Parity Law, including the wages that were owed to current and former aides in prior years. Moreover, both All American and Crown have admitted, acknowledged and accepted responsibility for underpaying their home health aides by failing to pay Wage Parity Law rates.
The case is being handled by Assistant U.S. Attorneys Michael Blume and Sean Greene-Delgado of the Office’s Civil Division. Assistant U.S. Attorney Matthew Mailloux, now with the District of New Jersey, handled the matter when he was with the Eastern District of New York.
Genesis Petroleum Resolves Federal Environmental Claims Involving 13 Gas Stations Located in Long Island and Westchester, New York and New JerseyRead the Press Release
Breon Peace, United States Attorney for the Eastern District of New York and Lisa Garcia, Regional Administrator of the U.S. Environmental Protection Agency (EPA) Region 2, announced that the United States has entered into a Consent Judgment settling a civil lawsuit against Genesis Petroleum, Inc. and 20 associated companies (Defendants), for violating the Resource Conservation and Recovery Act (RCRA) in connection with their ownership or operation of underground storage tanks (USTs) at 13 gas stations in New York and New Jersey. The Consent Judgment requires the Defendants to adequately detect leaks of petroleum product from USTs, and to implement other safety measures, across their facilities in New York and New Jersey. The settlement also requires Defendants to pay a civil penalty of $250,000.
“Genesis Petroleum flagrantly disregarded measures required by law that are designed to protect the health and safety of the communities in which it operates its gas stations. Leaks from underground storage tanks can contaminate drinking water supplies, pollute surrounding soil and surface waters as well as groundwater, and impact indoor airspaces,” stated United States Attorney Peace. “This settlement reaffirms this Office's commitment to safeguarding public health, preserving the environment, and promoting environmental justice in partnership with the EPA.”
“This settlement protects communities across New York and New Jersey by significantly improving how these businesses manage underground storage tanks,” stated EPA Regional Administrator Garcia. “If underground storage tanks leak, they can pose a serious problem because they can contaminate groundwater, and the risk can be heightened when owners and operators of USTs fail to comply with EPA’s regulatory requirements. Underground storage tanks are important business infrastructure and are essential for fueling vehicles but when these tanks are not properly maintained or repaired, communities and the environment can be at risk from leaks of hazardous substances.”
Petroleum products such as gasoline contain chemical compounds that pose substantial threats to human health. Service stations typically store gasoline in USTs. When operated conscientiously and monitored closely, USTs are a safe and effective means to store gasoline. But when those tanks are not subjected to basic operational safeguards, they can endanger the public and the environment, for example by leaking the contents of their tanks into the water supply, discharging toxic vapors into the air, or even triggering fires or explosions.
EPA’s regulations under RCRA are designed to protect the public by requiring underground storage tank operators to reduce the likelihood of leaks, monitor for leaks so they can promptly be addressed, and maintain adequate insurance to conduct corrective action and compensate injured third parties should a leak occur.
The Consent Judgment, which is subject to public comment and approval by the district court, resolves a lawsuit filed by the United States in June 2019, which alleges that the Defendants repeatedly violated RCRA and related regulations at various times between 2012 and 2016 with respect to their ownership and/or operation of underground storage tanks at 13 gas stations. Twelve of the Defendants’ facilities covered by the Consent Judgment are located in low-income areas and communities of color that are exposed to disproportionate environmental burdens.
The United States alleges that the Defendants failed to perform required actions including:
- failure to install and use spill prevention equipment at three facilities;
- failure to use overfill prevention equipment at three facilities;
- failure to provide release detection for underground storage tanks at three facilities;
- failure to provide release detection for pressurized piping at six facilities;
- failure to test automatic line leak detectors at nine facilities;
- failure to report suspected releases at three facilities;
- failure to perform release detection for underground storage tanks that were temporarily closed but still contained more than three feet of petroleum products at one facility;
- failure to timely provide records of release detection monitoring at ten facilities;
- failure to timely respond to requests for information issued by EPA at 13 facilities; and
- failure to maintain financial responsibility and evidence of financial responsibility at seven facilities.
Pursuant to the Consent Judgment, Defendants are required to comply with the regulations applicable to USTs for all tanks at 29 facilities at which they currently own or operate underground storage tanks in New York and New Jersey. The Consent Judgment requires Defendants to implement significant measures to ensure such compliance, including undertaking inspections, maintaining and operating a federally approved release detection method at all underground storage tanks at the facilities, maintaining a properly functioning and operational overfill prevention system for new tanks and providing semi-annual reports to EPA.
The 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 before the Consent Judgement is submitted for the Court’s approval. This will afford members of the public the opportunity to submit comments on the Consent Judgement to the Department of Justice.
In June 2021, the United States Attorney’s Office for the Eastern District of New York created an Environmental Justice Team within the Office’s Civil Division. The focus of the Environmental Justice Team is the protection of the rights of residents of the Eastern District of New York who are disproportionately burdened by environmental and health hazards.
This matter is being handled by Assistant U.S. Attorneys Jolie Apicella and Paulina Stamatelos with assistance from Paralegal Specialist Mary Ellen Buntin of the United States Attorney’s Office for the Eastern District of New York, working with Lee Spielmann, Assistant Regional Counsel, EPA Region 2, and Hiep Tran, Enforcement Officer, EPA Region 2.
E.D.N.Y. Docket No. 19-CV-3340 (JS)
The Defendants:Genesis Petroleum, Inc.
Technic Management, Inc.
Gulden Inc.
2664 RT 112 Realty Corp.
607 Station Road Realty Inc.
1000 Motor Parkway Central Islip LLC
616 Broadway LLC
Freeport Realty LLC
199 E. Sunrise Highway Realty Corp.
465 Nassau Road Realty Corp.
Camlica, Inc.
Kucukbey Corp.
North Country Road Realty LLC
Elizabeth NJPO LLC
Elizabeth NJPG LLC
Perth Amboy NJPO LLC
Perth Amboy NJPG LLC
Newark NJPO LLC
Newark NJPG LLC
North Bergen NJPO LLC
North Bergen NJPG
Gas Stations in the Complaint:2664 Route 112, Medford, New York
607 Station Road, Bellport, New York
87 North Country Road, Miller Place, New York
616 Route 110, Amityville, New York
6077 Jericho Turnpike, Commack, New York
199 E. Sunrise Highway, Freeport, New York
131 West Merrick, Freeport, New York
465 Nassau Road, Roosevelt, New York
261 East Merrick Road, Freeport, New York
507 Bayway Avenue, Elizabeth, New Jersey
163 Fayette Street, Perth Amboy, New Jersey
66-80 Bloomfield Avenue, Newark, New Jersey
8012 Tonnelle Avenue, North Bergen, New Jersey
Gas Stations Subject to the Consent Judgment:2664 Route 112, Medford, NY
607 Station Road, Bellport, NY
87 North Country Road, Miller Place, NY
616 Route 110 (Broadway Road), Amityville, NY
199 East Sunrise Highway, Freeport, NY
131 West Merrick Road, Freeport, NY
465 Nassau Road, Roosevelt, NY
11 Station Road, Bellport, NY
315 Route 112, Port Jefferson, NY
1575 Route 112, Port Jefferson, NY
4290 Austin Blvd., Island Park, NY
303 Maple Avenue in Smithtown, NY
2394 Boston Post Road, Larchmont, NY
2149 Boston Post Road, Larchmont, NY
747 Main Street, New Rochelle, NY
8012 Tonnelle Avenue, North Bergen, NJ
2 Marlton Pike W, Cherry Hill, NJ
4915 Route 130 & Browning Road, Pennsauken, NJ
1422 W. Landis Avenue, Vineland, NJ
520 E. Commerce Street, Bridgeton, NJ
3731 Bay Shore Road, Lower Township, NJ
515 S. Pennsville-Auburn Road, Carneys Point, NJ
632 2nd Avenue, Long Branch, NJ
379 Quaker Church Road, Randolph, NJ
1839 Admiral Wilson Blvd., Camden, NJ
509 Route 47S, Cape May, NJ
1651 Route 38 & 464 Pine Street, Mount Holly, NJ
615 Pearl Street N., Bridgeton, NJ
3422 S. Delsea Drive, Vineland, NJ
Defendant Sentenced to 17 Years in Prison for Attempting to Murder United States Government InformantRead the Press Release
Earlier today, at the federal courthouse in Brooklyn, Luis Taveras was sentenced by United States District Judge Kiyo A. Matsumoto to 17 years’ imprisonment for attempting to commit obstruction-of-justice murder. Taveras pleaded guilty to the charge in January 2020.
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); Tim Foley, Acting Special Agent-in-Charge, Drug Enforcement Administration, New York Division (DEA); Keechant L. Sewell, Commissioner, New York City Police Department (NYPD); and Kevin P. Bruen, Superintendent, New York State Police (NYSP), announced the sentence.
“The defendant planned the cold-blooded execution of a witness he believed to be cooperating with U.S. law enforcement, and watched as the witness and members of his family, including a 5-year-old, were shot and wounded. By his callous disregard for human life and brazen contempt for the law, Taveras has earned the lengthy prison term imposed today,” stated United States Attorney Peace. “I commend and thank the Organized Crime Drug Enforcement Task Force for their tireless efforts to bring the defendant to justice for this horrific crime.”
“Taveras tried to silence a potential witness to eliminate the chances of their cooperation with U.S. law enforcement. In a daring public attempt, Taveras tried to gun down the individual in a crowded Colombian restaurant, wounding three victims including a 5-year-old boy,” stated HSI Acting Special Agent-in-Charge Patel. “This callous act of extreme violence and blatant disregard for human life resulted in today’s stiff sentence to land Taveras in federal prison for 17 years. HSI New York, working with our law enforcement partners will continue to tirelessly pursue the most dangerous offenders and prosecute those who seek to obstruct justice, both domestically and on foreign soil.”
“Luis Taveras’ actions were nothing less than cold-blooded and this sentence cements the gravity of his crimes. The relentless nature of law enforcement has resulted in bringing Taveras to justice to face the consequences of his actions. I applaud the U.S. Attorney’s Office Eastern District of New York, the New York City Police Department, the New York State Police, and Homeland Security Investigations for their diligent work and continued collaboration with the DEA New York Division,” stated DEA Special Agent-in-Charge Foley.
“A measure of justice was meted out today against Luis Taveras, whose admitted crimes not only victimized a family, including an innocent child, but sought to upend the sanctity of our collective law enforcement system,” stated NYPD Commissioner Sewell. “His sentencing reflects the commitment of our NYPD investigators and partners, including in the United States Attorney’s Office in the Eastern District of New York, to never relent in our work to eradicate drug traffickers and the harm they propel at home and abroad.”
“This is a clear-cut case in which this suspect attempted to take out a witness who had information regarding his criminal activity, while completely disregarding the safety of innocent family members, including a young child. I want to thank our law enforcement partners for their continued partnership, and the US Attorney for ensuring that the defendant is held fully accountable for his actions,” stated NYSP Superintendent Bruen,
As detailed in court filings and the defendant’s statements at his guilty plea proceeding, Taveras arranged for the murder of an individual whom he knew from prior narcotics transactions and believed to be cooperating with U.S. law enforcement. On June 21, 2016, Tavares entered a restaurant in Cali, Colombia, and sat down at a table with the victim. Shortly thereafter, Taveras stood up, walked to the back of the restaurant, and watched as a co-conspirator entered the restaurant and fired eight shots – wounding the victim in the shoulder and arm, and also wounding two family members of the victim, including a five-year-old child. Taveras and his co-conspirator then fled. The three victims survived their wounds.
Taveras was arrested in February 2019 by federal law enforcement agents in Miami. During his guilty plea proceeding, Tavares admitted that he identified the intended target to his co-conspirator, and that he wanted to prevent that individual from providing information to U.S. law enforcement.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
The government’s case is being handled by the Office’s International Narcotics and Money Laundering Section. Assistant United States Attorney Erin Reid is in charge of the prosecution.
The Defendant:
LUIS TAVERAS
Age: 33
Miami, FloridaE.D.N.Y. Docket No. 19-CR-180 (S-2) (KAM)
11 MS-13 Gang Members Charged in Superseding Indictment with Racketeering, Narcotics and Firearms OffensesRead the Press Release
Earlier today, a superseding indictment was unsealed in federal court in Central Islip charging 11 members of the violent transnational criminal organization La Mara Salvatrucha, also known as the MS-13, with racketeering conspiracy, including predicate racketeering acts involving murder, attempted murder, conspiracy to commit murder, robbery, witness tampering and witness retaliation, and related narcotics and firearms offenses. Four of the defendants were charged with committing the April 11, 2021 murder of Nazareth Claure in Far Rockaway, New York, whose body was recovered from the trunk of a car.
Three of the defendants – Onan Garcia-Lopez, also known as “Demente,” David Alberto Orantez-Gonzalez, also known as “Carlos Rodriguez-Gonzalez” and “Casper,” and Carlos Torres-Alfaro, also known as “Solitario,” – were arrested today and will be arraigned this afternoon by United States Magistrate Judge Steven I. Locke.
The other eight defendants, Billy Ayala-Pineda, also known as “Berdugo,” and Wilian Estiven Sanchez-Perez, also known as “Maniako,” who were charged in the underlying indictment, and Anander Henriquez-Avila, also known as “Cara Papa” and “El Papa,” Allan Lopez-Villeda, also known as “Serio,” and “Casper,” Carlos Ramirez-Portillo, also known as “Chino” and “Siniestro,” Jose Sarmiento-Valeriano, also known as “David,” Henry Vasquez-Padilla, also known as “Trece,” Rigel Yohario Velasquez-Mancia, also known as “E,” were already in federal and state custody and will be arraigned at a later date.
Breon Peace, United States Attorney for the Eastern District of New York (EDNY); Ricky J. Patel, Special Agent-in-Charge, Homeland Security Investigations, New York (HSI); Keechant L. Sewell, Commissioner, New York City Police Department (NYPD); and John J. Durham, Director, Joint Task Force Vulcan, announced the arrests and charges in the superseding indictment.
“The significant federal charges in the superseding indictment, including the brutal murder of a mother whose body was wrapped in trash bags, underscores the cruel depravity and senseless violence of the MS-13 gang,” stated United States Attorney Peace. “With this indictment and additional arrests, this Office has taken another step in seeking justice for the murder victim and her family, and we will not rest until the threat of the MS-13 gang is eliminated for good from our communities.”
Mr. Peace also thanked the Queens County District Attorney’s Office, the Nassau County District Attorney’s Office, the Nassau County Police Department, the United States Marshals Service Regional Fugitive Task Force, and the Border Enforcement Security Task Force of HSI Boston for their work on the investigations.
“As alleged, the savagery and brutality of the crimes committed by some of the individuals named in the indictment is beyond comprehension and involves the murder of young woman, who was wrapped in a plastic bag and placed in the trunk of a car like an object instead of a young mother and human being,” said Homeland Security Investigations, Acting Special Agent in Charge Ricky J. Patel. “Today’s superseding indictment and arrests send a clear message that violent gang members who commit such deplorable and cowardly crimes against humanity will be tracked down and held accountable for their actions. HSI New York’s Transnational Violent Gangs Task Force, working with our law enforcement and prosecutorial partners will continue to tirelessly pursue the most dangerous offenders and bring them to justice.”
“Today’s announcement highlights the NYPD’s commitment to working with all of its law enforcement partners to dismantle transnational criminal organizations like MS-13, which routinely use violence and intimidation to prey upon vulnerable communities,” said NYPD Commissioner Sewell. “By contributing our unique capabilities to this joint effort, the NYPD continues to remove vicious gang members from the streets of New York and protect the people we serve from the unthinkable harm alleged in this indictment.”
As alleged in the superseding indictment, MS-13 is a transnational criminal organization composed primarily of immigrants or descendants of immigrants from El Salvador, but also includes members from other countries such as Honduras, Guatemala and Mexico. Although the gang originated in Los Angeles, California, it quickly spread and is now a national and international criminal organization with an estimated 10,000+ members regularly conducting gang activities in nearly all of the United States, including New York, and in El Salvador, Honduras, Guatemala, and Mexico.
MS-13 cliques are organized together under umbrella groups, called “Programs.” Cliques within a Program were responsible for assisting one another with firearms, drug trafficking connections, territorial disputes with rival gangs, and providing safe havens for members who were wanted by law enforcement. One of the MS-13 Programs operating in the United States is the Los Angeles Program (or “LA Program”).
As further alleged in the superseding indictment, Ayala-Pineda, who was charged in the underlying indictment and arrested on December 15, 2021, was the highest-ranking member (or “First Word”) of the Surenos Locos Salvatruchas (“SLS”) clique operating in Queens and Long Island, New York and a leader of the LA Program operating in the United States. Ayala-Pineda directed the SLS clique’s drug trafficking activity, acts of violence committed against rival gang members and against members and associates of the gang who Ayala-Pineda deemed to have been disloyal to the gang, and the SLS clique’s acquisition of firearms. The other ten defendants all were members and associates of the MS-13 and involved in trafficking narcotics and committing acts of violence in furtherance of the gang’s objectives in conjunction with the SLS clique.
All 11 defendants are charged with racketeering conspiracy for their participation in MS-13 crimes, including murder, robbery, witness tampering, witness retaliation, drug trafficking, and related conspiracy, attempt and firearms offenses. In addition, Henriquez-Avila, Lopez-Villeda, Sarmiento-Valeriano, and Velasquez-Mancia, are charged with the murder of Claure, on or about April 11, 2021 in Queens, New York. In the early morning hours of April 13, 2021, Lopez-Villeda, Sarmiento-Valeriano, and Velasquez-Mancia were pulled over during a car stop by the NYPD and HSI in Queens, New York. Ms. Claure’s body was discovered in the trunk of the car wrapped in trash bags. In addition to the murder, the Indictment charges all the defendants with conspiring to distribute cocaine, oxycodone, and marijuana, as well as their use and possession of firearms in furtherance of their narcotics trafficking. These charges stem from the MS-13 clique’s street-level sales of narcotics on Long Island, the proceeds of which were used to help finance the MS-13’s criminal operations, which is evidenced by financial records of money sent back to El Salvador and Mexico.
Today’s superseding indictment is the latest in a series of federal prosecutions by the United States Attorney’s Office for the Eastern District of New York targeting members 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, and has convicted more than 100 MS-13 leaders and members in connection with those murders.
This superseding indictment is the product of coordination between EDNY and Joint Task Force Vulcan (JTFV), which was created in August 2019 as a whole-of-government approach to dismantle transnational criminal organizations, such as MS-13.Since its creation, JTFV has successfully increased coordination and collaboration with foreign law enforcement partners, including El Salvador, Mexico, Honduras and Guatemala; designating priority MS-13 programs, cliques and leaders, who have the most impact on the United States, for targeted prosecutions; and coordinating significant MS-13 indictments in U.S. Attorney’s Offices across the country, including the first use of national security charges against MS-13 leaders in El Salvador. JTFV has been comprised of members from U.S. Attorney’s Offices across the country, including the EDNY; the Southern District of New York; the District of New Jersey; the Northern District of Ohio; the District of Utah; the Eastern District of Virginia; the District of Massachusetts; the Eastern District of Texas; the District of Alaska; the Southern District of Florida; the Southern District of California; the District of Nevada; and the District of Columbia, as well as the Department of Justice’s National Security Division and the Criminal Division. In addition, all Department of Justice law enforcement agencies are involved in the effort, including the Federal Bureau of Investigation; the U.S. Drug Enforcement Administration; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the U.S. Marshals Service; and the U.S. Bureau of Prisons. In addition, HSI also plays a critical role in JTFV.
The charges announced today are allegations, and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law. If convicted, the defendants face a maximum sentence of life in prison, and the four defendants charged with the Claure murder are eligible for the death penalty.
The government’s case is being prosecuted by Assistant U.S. Attorney Jacob Warren from JTFV and the United States Attorney’s Office for the Southern District of New York, and Assistant U.S. Attorneys Paul G. Scotti, Justina L. Geraci and Megan E. Farrell from the EDNY’s Long Island Criminal Division. The charges in the Superseding Indictment were investigated by the Violent Gang Task Force of HSI and the NYPD.
The Defendants:
Billy Ayala-Pineda (“Berdugo”)
Age: 31
Long Island, New YorkOnan Garcia-Lopez (“Demente”)
Age: 20
Long Island, New YorkAnander Henriquez-Avila (“Cara Papa” and “El Papa”)
Age: 29
Queens, New YorkAllan Lopez-Villeda (“Serio”)
Age: 23
Queens, New YorkDavid Alberto Orantes-Gonzalez (“Carlos Rodriguez Gonzalez” and “Casper”)
Age: 24
Queens, New YorkCarlos Ramirez-Portillo (“Chino”)
Age: 21
Queens, New YorkWilian Estiven Sanchez-Perez (“Maniako”)
Age: 21
Queens, New YorkJose Sarmiento-Valeriano (“David”)
Age: 22
Long Island, New YorkCarlos Torres-Alfaro (“Solitario”)
Age: 20
Queens, New YorkHenry Vasquez-Padilla (“Trece”)
Age: 26
Queens, New YorkRigel Yohairo Velasquez-Mancia (“E”)
Age: 21
Queens, New YorkE.D.N.Y. Docket No.: 21-CR-635 (S-1)(JMA)
Long Island Physician Sentenced to 51 Months in Prison for Covid-19 Loan FraudRead the Press Release
Earlier today, in federal court in Central Islip, Konstantinos Zarkadas, a Glen Cove-based medical doctor, was sentenced by United States District Judge Gary R. Brown to 51 months’ imprisonment for fraudulently obtaining millions of dollars in COVID-19 emergency relief funds. The Court also ordered Dr. Zarkadas to pay approximately $3.5 million in restitution. Dr. Zarkadas pleaded guilty in November 2021 to disaster relief fraud and wire fraud in connection with his receipt of small business loans under the Paycheck Protection Program (PPP) and Economic Injury Disaster Loan Program (EIDLP). As part of the plea agreement, Dr. Zarkadas forfeited $200,000 and four luxury wristwatches.
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, Jr., Special Agent-in-Charge, Internal Revenue Service Criminal Investigation, New York (IRS-CI), announced the sentence.
“Today’s sentence demonstrates there are consequences for those who treat vital government programs as cash give-a-ways and shamefully seek to profit from an unprecedented public health crisis,” stated United States Attorney Peace. “This Office will vigorously prosecute and bring to justice medical professionals like the defendant and other fraudsters who are driven by greed to maintain a lavish lifestyle at the expense of small businesses in legitimate need of COVID-19 emergency assistance.”
“It’s a shame to see rampant abuse of programs designed to help ordinary people struggling through the pandemic. Dr. Zarkadas chose greed over honesty by financing a luxury lifestyle on the backs of America’s taxpayers,” stated IRS-CI Special Agent-in-Charge Fattorusso. “Thanks to the investigative work of IRS-CI and the FBI, he’ll sail straight to federal prison instead of onboard his $1.7 million yacht that was illegally purchased with CARES Act funds.”
Between March 2020 and July 2020, amid the COVID-19 pandemic, Dr. Zarkadas fraudulently applied for, and received based on the false information that he provided, at least 11 PPP and EIDLP loans totaling approximately $3,700,000, on behalf of corporate entities he controlled. Dr. Zarkadas laundered the loan proceeds through various bank accounts, ultimately using the funds for extravagant personal purchases and other impermissible purposes. For example, in July 2020, Dr. Zarkadas used approximately $194,915.42 in PPP funds to finance the down payment on a $1.75 million yacht. To conceal the fraudulent nature of the purchase, Dr. Zarkadas made the check payable to a family member who was not the ultimate beneficiary of the funds and, in the check’s memo line, falsely indicated the funds were “repayment for payroll.” Dr. Zarkadas also withdrew tens of thousands of dollars’ worth of loan proceeds in cash and used some of the proceeds to satisfy more than $1 million in judgments against him, to lease luxury automobiles, and to make personal purchases, including several Rolex and Cartier wristwatches which he forfeited as part of his guilty plea in this case.
Congress created the PPP and EIDLP as part of the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act. Enacted on March 29, 2020, the CARES Act provided emergency financial assistance in connection with economic effects of the COVID-19 pandemic. One source of relief provided by the CARES Act was the allocation of funds for the issuance of forgivable loans to small businesses for job retention and certain other expenses through the PPP. The PPP allowed qualifying small businesses to receive unsecured loans on favorable terms, which they were required to use for specified expenses, including payroll costs, interest on mortgages, rent and utilities. The PPP provided for forgiveness of the loan if recipient businesses spent the proceeds on these specified expenses within a limited time period and used a certain percentage for payroll costs.
Another source of relief provided by the CARES Act was the EIDLP, which provided low-interest financing to small businesses, renters and homeowners in regions affected by declared disasters. Under the program, EIDLP recipients were eligible to receive advances of up to $10,000 for small businesses within three days of applying for an EIDL (EIDL Advance). The amount of an EIDL Advance was determined based on the number of employees working for the applicant. The EIDL Advance did not have to be repaid.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorney Anthony Bagnuola is in charge of the prosecution.
The Defendant:
KONSTANTINOS ZARKADAS
Age: 48
Glen Cove, New YorkE.D.N.Y. Docket No. 21-CR-363 (GRB)
Queens Man Pleads Guilty in Multi-Million Dollar Prize Notice Fraud SchemeRead the Press Release
CENTRAL ISLIP, NY – Earlier today, at the federal courthouse in Central Islip, New York, Scott Gammon pleaded guilty to conspiracy to commit mail fraud. The over $4 million fraud involved a mass mailing scheme that tricked consumers into paying fees for falsely promised cash prizes. The plea took place before Magistrate Judge Steven I. Locke.
Breon Peace, United States Attorney for the Eastern District of New York, Brian M. Boynton, Principal Deputy Attorney General of the Justice Department’s Civil Division, and Daniel B. Brubaker, Inspector-in-Charge, United States Postal Inspection Service (USPIS) announced the guilty plea.
“The defendant admitted he deceived elderly and vulnerable victims into believing they had won cash prizes by inducing them to pay bogus ‘fees’ to him and his co-conspirators,” stated United States Attorney Peace. “This Office will continue to protect our seniors and other consumers from harm caused by predatory solicitation schemes.”
“Fraudulent prize notices often trick elderly victims into sending away their money based on false promises of large cash prizes,” said Principal Deputy Assistant Attorney General Boynton. “This guilty plea is the latest example of the Department of Justice continuing to pursue and prosecute the perpetrators of these schemes.”
“Postal Inspectors remind consumers, if you have to pay to win a prize, you’ll lose your money. These are all scams designed to lure consumers into sending their hard-earned money—not for a prize, but to fatten the pockets of a fraudster. Mr. Gammon may have thought he got away with this scheme, but he was sadly mistaken when he was confronted by the full investigative power of law enforcement,” said USPIS Inspector-in-Charge Brubaker.
According to court documents, from August 2014 through August 2019, Gammon engaged in a direct-mail scheme that sent fraudulent prize notification mailings to thousands of consumers. The mailings induced consumers to pay a fee, purportedly in return for a large cash prize. None of the consumers who paid the fee ever received such a prize. Gammon is the third defendant to plead guilty to conspiracy to commit mail fraud in connection with this scheme.
Two other defendants previously pleaded guilty to conspiracy to commit mail fraud for participating in the scheme. Christopher King pleaded guilty on September 15, 2021 and Natasha Khan, pleaded guilty on December 15, 2021.
Each of the three defendants faces a maximum penalty of 20 years in prison.
Assistant United States Attorneys Charles P. Kelly and Madeline O’Connor of the Eastern District of New York, Long Island Criminal Division are prosecuting the case with Trial Attorneys Daniel Zytnick and Timothy Finley of the Civil Division’s Consumer Protection Branch.
The Defendant:
SCOTT GAMMON
Age: 47
Broad Channel, New YorkE.D.N.Y. Docket No. 22-085 (DRH)
Defendants Previously Pleaded Guilty:
CHRISTOPHER KING
Age: 36
Oceanside, New YorkE.D.N.Y. Docket No. 21-CR-418 (DRH)
NATASHA KHAN
Age: 38
Elmont, New YorkE.D.N.Y. Docket No. 21-CR-609 (DRH)
New York Man Pleads Guilty in Multimillion-Dollar Fraud SchemeRead the Press Release
A New York resident pleaded guilty today in the Eastern District of New York to participating in a fraudulent multimillion-dollar mass-mailing scheme that tricked consumers into paying fees for falsely promised cash prizes.
According to court documents, from August 2014 through August 2019, Scott Gammon, 47, of Broad Channel, New York, engaged in a direct-mail scheme that sent fraudulent prize notification mailings to thousands of consumers. The mailings induced consumers to pay a fee, purportedly in return for a large cash prize. None of the consumers who sent a fee ever received such a prize. Gammon is the third defendant to plead guilty to conspiracy to commit mail fraud in connection with this scheme.
“Fraudulent prize notices often cause victims, including the elderly, to send money based on false promises of large cash prizes,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “This guilty plea is the latest example of the Department of Justice continuing to pursue and prosecute the perpetrators of these schemes.”
“The defendant admitted he deceived elderly and vulnerable victims into believing they had won cash prizes by inducing them to pay bogus ‘fees’ to him and his co-conspirators,” stated U.S. Attorney Breon Peace for the Eastern District of New York. “This office will continue to protect our seniors and other consumers from harm caused by predatory solicitation schemes.”
“Postal Inspectors remind consumers, if you have to pay to win a prize, you’ll lose your money,” said Inspector in Charge Daniel B. Brubaker of the U.S. Postal Inspection Service. “These are all scams designed to lure consumers into sending their hard-earned money — not for a prize, but to fatten the pockets of a fraudster. Mr. Gammon may have thought he got away with this scheme, but he was sadly mistaken when he was confronted by the full investigative power of law enforcement.”
Two other defendants previously pleaded guilty to conspiracy to commit mail fraud for participating in the scheme. Christopher King, 36, of Oceanside, New York, pleaded guilty on Sept. 15, 2021. Natasha Khan, 38, of Elmont, New York, pleaded guilty on Dec. 15, 2021.
Gammon’s plea took place before Magistrate Judge Steven I. Locke. Gammon is scheduled to be sentenced at a later date. Each of the three defendants faces a maximum penalty of 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The U.S. Postal Inspection Service investigated the case.
Trial Attorneys Daniel Zytnick and Timothy Finley of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorney Charles P. Kelly of the U.S. Attorney’s Office for the Eastern District of New York are prosecuting the case.
Additional information about the Consumer Protection Branch and its enforcement efforts may be found at www.justice.gov/civil/consumer-protection-branch.
Five Individuals Charged Variously with Stalking, Harassing, and Spying on U.S. Residents on Behalf of the PRC Secret PoliceRead the Press Release
Two complaints were unsealed and one amended complaint was authorized today in federal court in Brooklyn charging five defendants with various crimes related to efforts by the secret police of the People’s Republic of China (PRC) to stalk, harass, and spy on Chinese nationals residing in Queens, New York and elsewhere in the United States. All of the defendants allegedly perpetrated transnational repression schemes to target U.S. residents whose political views and actions are disfavored by the PRC government, such as advocating for democracy in the PRC. In one of these schemes, the coconspirators sought to interfere with federal elections by allegedly orchestrating a campaign to undermine the U.S. congressional candidacy of a U.S. military veteran who was a leader of the 1989 pro-democracy demonstrations in Beijing, PRC. In another of these schemes, three defendants planned to destroy the artwork of a PRC national residing in Los Angeles, California that was critical of the PRC government, and planted surveillance equipment in the artist’s workplace and car to spy on him from the PRC.
Fan “Frank” Liu and Matthew Ziburis were arrested yesterday, while Shujun Wang was arrested this morning. All three arrests occurred in the Eastern District of New York. The defendants’ initial appearances are scheduled this afternoon in Brooklyn before United States Magistrate Judge James R. Cho. The other two defendants remain at large.
Breon Peace, United States Attorney for the Eastern District of New York, Matthew G. Olsen, Assistant Attorney General of the Justice Department’s National Security Division, Alan E. Kohler, Jr., Assistant Director of the Federal Bureau of Investigation’s Counterintelligence Division (FBI), and Michael J. Driscoll, Assistant Director-in-Charge, FBI, New York Field Office, announced the arrests and charges.
“The complaints unsealed today reveal the outrageous and dangerous lengths to which the PRC government’s secret police and these defendants have gone to attack the rule of law and freedom in New York City and elsewhere in the United States,” stated United States Attorney Peace. “As alleged, all three cases involve campaigns to silence, harass, discredit and spy on U.S. residents for simply exercising their freedom of speech. The United States will not tolerate blatantly illegal actions that target U.S. residents, on U.S. soil, and undermine our treasured American values and rights.”
“Transnational repression harms people in the United States and around the world and threatens the rule of law itself,” said Assistant Attorney General Olsen. “This activity is antithetical to fundamental American values, and we will not tolerate it when it violates U.S. law. The Department of Justice will defend the rights of Americans and those who come to live, work, and study in the United States. We will not allow any foreign government to impede their freedom of speech, to deny them the protection of our laws, or to threaten their safety or the safety of their families.”
“The Ministry of State Security is more than an intelligence collection agency. It executes the Chinese government’s efforts to limit free speech, attack dissidents, and preserve the power of the Communist Party,” stated FBI Assistant Director Kohler. “When it exports those actions overseas, it violates the fundamental sovereignty of the US and becomes a national security threat. These indictments should serve as a stark warning to the MSS and all foreign intelligence agencies that their efforts at repression will not be tolerated within our borders.”
“As alleged, all of the defendants charged today at the direction of the PRC secret police, engaged in a series of actions designed to silence the free speech of Chinese dissidents in the United States. Transnational repression schemes pose an increasing threat against U.S. residents who choose to speak out against the People’s Republic of China and other regimes. The FBI is committed to protecting the free speech of all U.S. residents, and we simply will not tolerate the attempts of foreign governments to violate our laws and restrict our freedom,” stated FBI Assistant Director-in-Charge Driscoll.
United States v. Qiming Lin
Lin is charged with conspiracy to commit interstate harassment, as well as conspiracy and attempt to use of a means of identification in connection with the interstate harassment conspiracy.
As alleged, Lin, a citizen and resident of the PRC, works on behalf of the PRC’s Ministry of State Security (MSS). The MSS is a civilian intelligence and secret police agency responsible for counterintelligence and political security.
Beginning in September 2021, Lin hired a private investigator (the PI) in New York to disrupt the campaign of a Brooklyn resident currently running for U.S. Congress (the Victim), including by physically attacking the Victim. The Victim was a student leader of the prodemocracy demonstrations in Tiananmen Square in 1989, who later escaped to the United States, served in the U.S. military, and became a naturalized U.S. citizen. In September 2021, the Victim (then living in Long Island) announced his intention to run for a U.S. congressional seat on Long Island in the November 2022 general election.
In hiring the PI, Lin explained that if the Victim was selected during the June 2022 primary election, then he might be “elected to be a legislator. Right now we don’t want him to be elected.” Lin emphasized that “Whatever price is fine. As long as you can do it.” He also promised that “we will have a lot more-more of this [work] in the future . . . Including right now [a] New York State legislator.” Lin explained to the PI that Lin was working with other unidentified individuals in the PRC to stop the Victim from being elected to U.S. Congress.
As alleged, Lin first asked the PI to provide information about the Victim, including the Victim’s address and phone number, which the PI later provided. Lin also requested that the PI unearth derogatory information about the Victim or, if no such information could be found, “manufacture something, like what happened to [a famous concert pianist (the Pianist)]?” That request referred to an incident in Beijing in which the Pianist was reportedly detained after allegedly being found in the company of a prostitute. Lin later reiterated that, if the PI could not uncover a scandal, then “can they create some?” Lin also encouraged the PI to “go find a girl . . . Or see how he goes for prostitution, take some photos, something of that nature.”
In December 2021, Lin proposed that the PI also consider physically attacking the Victim to prevent his candidacy. In a voice message to the PI, Lin stated:
You can start thinking now, aside from violence, what other plans are there? Huh? But in the end, violence would be fine too. Huh? Beat him [chuckles], beat him until he cannot run for election. Heh, that’s the-the last resort. You-you think about it. Car accident, [he] will be completely wrecked [chuckles], right? Don’t know, eh, whatever ways from all different angles. Or, on the day of the election, he cannot make it there himself, right?
The government’s case is being handled by the Office’s National Security and Cybercrime Section. Assistant United States Attorneys Alexander A. Solomon and David K. Kessler are in charge of the prosecution, with assistance from Trial Attorney Scott A. Claffee of the National Security Division’s Counterintelligence and Export Control Section.
United States v. Shujun Wang
Wang is charged with acting as an agent of the PRC government, criminal use of means of identification, and making materially false statements, in connection with his participation in a transnational repression scheme orchestrated by the MSS.
As alleged, Wang, who lives in Flushing, Queens, is a former visiting scholar and author who helped start a pro-democracy organization in Queens that memorializes two former leaders of the Chinese Communist Party who promoted political and economic reforms within the PRC and were eventually forced from power. Since at least 2015, however, Wang has secretly operated at the direction and control of several MSS officers.
At the direction of the MSS, Wang used his position and status within the Chinese diaspora community in New York City to collect information about prominent activists, dissidents, and human rights leaders to report that information to the PRC government. While ostensibly lending a sympathetic ear, Wang reported on statements activists made in confidence to him, including on their views on democracy in the PRC, as well as planned speeches, writings, and demonstrations against the Chinese Communist Party. The victims of Wang’s efforts included individuals and groups located in New York City and elsewhere that the PRC considers subversive, such as Hong Kong pro-democracy activists, advocates for Taiwanese independence, and Uyghur and Tibetan activists, both in the United States and abroad. Wang sent email “diaries” to the MSS that contained details of his conversations with prominent dissidents, the activities of pro-democracy activists, as well as relevant phone numbers and other contact information for the targets of the PRC government.
For example, in a series of communications on November 22, 2016, Wang’s MSS handler instructed him to meet with a particular attendee at a pro-democracy event in Queens and to “accomplish the task” assigned by the “Boss.” The MSS handler emphasized that the attendee had contacts with “Tibetans, Uyghurs and Mongolians.” Similarly, on November 16, 2016, Wang informed another MSS handler that he “just finished chatting” with a prominent human rights activist and had asked the “necessary questions” and received “candid” answers. The MSS officer responded “great” and with a thumbs-up emoji, instructing Wang to record that information in a “diary.”
In April 2020, one victim about whom Wang reported—the Hong Kong democracy activist identified in the complaint as “Hong Kong Dissident #1”—was arrested in Hong Kong and jailed on political charges. In addition, in April 2019, Wang flew from the PRC to John F. Kennedy International Airport in Queens carrying a handwritten document with the names and non-public contact information for dozens of other well-known PRC dissidents, including other Hong Kong democracy activists who were subsequently arrested by the PRC in 2019 and 2020.
The complaint also alleges that, during an interview in Queens on August 2, 2017, Wang lied to federal law enforcement, falsely denying that he had contacts with PRC officials or the MSS when in fact he had been secretly reporting on U.S. residents to the MSS. Wang later admitted much of his criminal conduct to an undercover member of law enforcement and during a subsequent interview with agents.
The government’s case is being handled by the Office’s National Security and Cybercrime Section. Assistant United States Attorney Artie McConnell is in charge of the prosecution, with assistance from Trial Attorney Scott A. Claffee of the National Security Division’s Counterintelligence and Export Control Section, and Assistant United States Attorney Edward Chang of the United States Attorney’s Office for the District of Connecticut.
United States v. Fan “Frank” Liu, Matthew Ziburis, and Qiang “Jason” Sun
Liu and Ziburis are charged with conspiring to act as agents of the PRC government. Liu, Ziburis, and Sun are charged with conspiring to commit interstate harassment and criminal use of a means of identification. Liu and Sun are charged with conspiring to bribe a federal official in connection with their scheme to obtain the tax returns of a pro-democracy activist residing in the United States.
According to the complaint, Liu, a resident of Jericho, Long Island, is president of a purported media company based in New York City, while Ziburis, a resident of Oyster Bay, Long Island, is a former correctional officer for the State of Florida and a bodyguard. Sun is a PRC-based employee of an international technology company.
According to the complaint, Liu and Ziburis have been operating under Sun’s direction and control to discredit pro-democracy PRC dissidents residing in the United States—including in New York City, California, and Indiana—by spying on them and disseminating negative information about them. For example, at Sun’s direction, Liu paid a private investigator in Queens to bribe an Internal Revenue Service employee to obtain the federal tax returns of one of the dissidents. The private investigator was cooperating with law enforcement, and no Internal Revenue Service employee received a bribe payment. The defendants planned to publicly disclose the dissident’s potential tax liabilities to discredit him. The coconspirators also made plans to destroy the artwork of a dissident artist whose work is critical of the PRC government, and the artist’s sculpture depicting PRC President Xi Jinping as a coronavirus molecule was demolished in the Spring of 2021. Sun has paid both Liu and Ziburis for these efforts to stalk, harass, and surveil dissidents residing in the United States.
As part of their efforts, the defendants electronically spied on the pro-democracy activists. For example, posing as an art dealer interested in purchasing the artwork of the dissident artist, Ziburis secretly installed surveillance cameras and GPS devices at the dissident’s workplace and in his car. While in the PRC, Sun watched the live video feed and location data from these devices. The defendants made similar plans to install surveillance equipment at the residences and on the vehicles of two other dissidents. Liu and Ziburis planned to gain access to one such residence by posing as a member of an international sports committee.
The defendants also planned to interview the dissidents in mock media sessions, using the cover of Liu’s purported media organization. Sun provided outlines for these fake interviews and designed questions to elicit answers that were intended to humiliate or discredit the dissidents. The defendants intended that audio or video clips of these statements could be used in PRC propaganda materials targeting the dissidents.
The government’s case is being handled by the Office’s National Security and Cybercrime Section. Assistant United States Attorneys Alexander A. Solomon and Emily J. Dean are in charge of the prosecution, with assistance from Brian D. Morris of the Office’s Asset Forfeiture Section, Trial Attorney Scott A. Claffee of the National Security Division’s Counterintelligence and Export Control Section, and Assistant United States Attorney Christopher D. Grigg of the United States Attorney’s Office for the Central District of California.
* * *
The charges in the complaints are allegations, and the defendants are presumed innocent unless and until proven guilty.
The FBI has created a website for victims to report efforts by foreign governments to stalk, intimidate, or assault people in the United States. If you believe that you are or have been a victim of transnational repression, please visit https://www.fbi.gov/investigate/counterintelligence/transnational-repression.
The Defendants:
QIMING LIN
Age: 59
People’s Republic of ChinaE.D.N.Y. Docket No. 22-MJ-251
SHUJUN WANG
Age: 73
Queens, New YorkE.D.N.Y. Docket No. 22-MJ-250
Fan “Frank” Liu
Age: 62
Jericho, New YorkE.D.N.Y. Docket No. 22-MJ-257
MATTHEW ZIBURIS
Age: 49
Oyster Bay, New YorkE.D.N.Y. Docket No. 22-MJ-257
QIANG “JASON” SUN
Age: 40
PEOPLE’S REPUBLIC OF CHINAE.D.N.Y. Docket No. 22-MJ-257
Five Individuals Charged Variously with Stalking, Harassing and Spying on U.S. Residents on Behalf of the PRC Secret PoliceRead the Press Release
Defendants Participated in Transnational Repression Schemes to Silence Critics of the People’s Republic of China (PRC) Residing in the United States and Abroad – Including by Attempting to Disrupt the Campaign of a U.S. Military Veteran and Candidate for U.S. Congress in Brooklyn Who Expressed Views Critical of the PRC and by Scheming to Destroy a PRC Dissident’s Artwork Criticizing the PRC Government
Two complaints were unsealed, and one amended complaint was authorized today in federal court charging five defendants with various crimes related to efforts by the secret police of the People’s Republic of China (PRC) to stalk, harass and spy on Chinese nationals residing in Queens, New York, and elsewhere in the United States.
Fan “Frank” Liu and Matthew Ziburis were arrested yesterday in the Eastern District of New York, while Shujun Wang was arrested this morning in the Eastern District of New York. Their initial appearances are scheduled this afternoon in Brooklyn before U.S. Magistrate Judge James R. Cho. The other two defendants remain at large.
According to court documents, all the defendants allegedly perpetrated transnational repression schemes to target U.S. residents whose political views and actions are disfavored by the PRC government, such as advocating for democracy in the PRC. In one of these schemes, the co-conspirators sought to interfere with federal elections by allegedly orchestrating a campaign to undermine the U.S. congressional candidacy of a U.S. military veteran who was a leader of the 1989 pro-democracy demonstrations in Beijing, PRC. In another of these schemes, three defendants planned to destroy the artwork of a PRC national residing in Los Angeles that was critical of the PRC government, and planted surveillance equipment in the artist’s workplace and car to spy on him from the PRC.
“Transnational repression harms people in the United States and around the world and threatens the rule of law itself,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “This activity is antithetical to fundamental American values, and we will not tolerate it when it violates U.S. law. The Department of Justice will defend the rights of Americans and those who come to live, work, and study in the United States. We will not allow any foreign government to impede their freedom of speech, to deny them the protection of our laws or to threaten their safety or the safety of their families.”
“The complaints unsealed today reveal the outrageous and dangerous lengths to which the PRC government’s secret police and these defendants have gone to attack the rule of law and freedom in New York City and elsewhere in the United States,” stated U.S. Attorney Breon Peace for the Eastern District of New York. “As alleged, all three cases involve campaigns to silence, harass, discredit and spy on U.S. residents for simply exercising their freedom of speech. The United States will not tolerate blatantly illegal actions that target U.S. residents, on U.S. soil, and undermine our treasured American values and rights.”
“As alleged, all of the defendants charged today at the direction of the PRC secret police, engaged in a series of actions designed to silence the free speech of Chinese dissidents in the United States,” said Assistant Director-in-Charge Michael J. Driscoll of the FBI’s New York Field Office. “Transnational repression schemes pose an increasing threat against U.S. residents who choose to speak out against the People’s Republic of China and other regimes. The FBI is committed to protecting the free speech of all U.S. residents, and we simply will not tolerate the attempts of foreign governments to violate our laws and restrict our freedom.”
“The Ministry of State Security is more than an intelligence collection agency. It executes the Chinese government’s efforts to limit free speech, attack dissidents, and preserve the power of the Communist Party,” said Assistant Director Alan E. Kohler Jr. of the FBI’s Counterintelligence Division. “When it exports those actions overseas, it violates the fundamental sovereignty of the United States and becomes a national security threat. These indictments should serve as a stark warning to the MSS and all foreign intelligence agencies that their efforts at repression will not be tolerated within our borders.”
United States v. Qiming Lin
Qiming Lin, 59, of the PRC, is charged with conspiracy to commit interstate harassment, as well as conspiracy and attempt to use of a means of identification in connection with the interstate harassment conspiracy.
As alleged, Lin works on behalf of the PRC’s Ministry of State Security (MSS). The MSS is a civilian intelligence and secret police agency responsible for counterintelligence and political security.
Beginning in September 2021, Lin hired a private investigator (the PI) in New York to disrupt the campaign of a Brooklyn resident currently running for U.S. Congress (the Victim), including by physically attacking the Victim. The Victim was a student leader of the pro-democracy demonstrations in Tiananmen Square in 1989, who later escaped to the United States, served in the U.S. military, and became a naturalized U.S. citizen. In September 2021, the Victim (then living in Long Island) announced his intention to run for a U.S. congressional seat on Long Island in the November 2022 general election.
In hiring the PI, Lin explained that if the Victim was selected during the June 2022 primary election, then he might be “elected to be a legislator. Right now we don’t want him to be elected.” Lin emphasized that, “Whatever price is fine. As long as you can do it.” He also promised that “we will have a lot more-more of this [work] in the future…Including right now [a] New York State legislator.” Lin explained to the PI that Lin was working with other unidentified individuals in the PRC to stop the Victim from being elected to U.S. Congress.
As alleged, Lin first asked the PI to provide information about the Victim, including the Victim’s address and phone number, which the PI later provided. Lin also requested that the PI unearth derogatory information about the Victim or, if no such information could be found, “manufacture something, like what happened to [a famous concert pianist (the Pianist)]?” That request referred to an incident in Beijing in which the Pianist was reportedly detained after allegedly being found in the company of a prostitute. Lin later reiterated that, if the PI could not uncover a scandal, then “can they create some?” Lin also encouraged the PI to “go find a girl… Or see how he goes for prostitution, take some photos, something of that nature.”
In December 2021, Lin proposed that the PI also consider physically attacking the Victim to prevent his candidacy. In a voice message to the PI, Lin stated:
You can start thinking now, aside from violence, what other plans are there? Huh? But in the end, violence would be fine too. Huh? Beat him [chuckles], beat him until he cannot run for election. Heh, that’s the-the last resort. You-you think about it. Car accident, [he] will be completely wrecked [chuckles], right? Don’t know, eh, whatever ways from all different angles. Or, on the day of the election, he cannot make it there himself, right?
If convicted, Lin faces a statutory maximum penalty of 10 years in prison. Lin remains at large.
Assistant U.S. Attorneys Alexander A. Solomon and David K. Kessler for the Eastern District of New York are prosecuting the case, with assistance from Trial Attorney Scott A. Claffee of the National Security Division’s Counterintelligence and Export Control Section.
United States v. Shujun Wang
Shujun Wang, 73, of Queens, New York, is charged with acting as an agent of the PRC government, criminal use of means of identification and making materially false statements in connection with his participation in a transnational repression scheme orchestrated by the MSS.
As alleged, Wang is a former visiting scholar and author who helped start a pro-democracy organization in Queens that memorializes two former leaders of the Chinese Communist Party who promoted political and economic reforms within the PRC and were eventually forced from power. Since at least 2015, however, Wang has secretly operated at the direction and control of several MSS officers.
At the direction of the MSS, Wang used his position and status within Chinese diaspora community in New York City to collect information about prominent activists, dissidents, and human rights leaders to report that information to the PRC government. While ostensibly lending a sympathetic ear, Wang reported on statements activists made in confidence to him, including on their views on democracy in the PRC, as well as planned speeches, writings, and demonstrations against the Chinese Communist Party. The victims of Wang’s efforts included individuals and groups located in New York City and elsewhere that the PRC considers subversive, such as Hong Kong pro-democracy activists, advocates for Taiwanese independence, and Uyghur and Tibetan activists, both in the United States and abroad. Wang sent email “diaries” to the MSS that contained details of his conversations with prominent dissidents, the activities of pro-democracy activists, as well as relevant phone numbers and other contact information for the targets of the PRC government.
For example, in a series of communications on Nov. 22, 2016, Wang’s MSS handler instructed him to meet with a particular attendee at a pro-democracy event in Queens and to “accomplish the task” assigned by the “Boss.” The MSS handler emphasized that the attendee had contacts with “Tibetans, Uyghurs and Mongolians.” Similarly, on Nov. 16, 2016, Wang informed another MSS handler that he “just finished chatting” with a prominent human rights activist and had asked the “necessary questions” and received “candid” answers. The MSS officer responded “great” and with a thumbs-up emoji, instructing Wang to record that information in a “diary.”
In April 2020, one victim about whom Wang reported – the Hong Kong democracy activist identified in the complaint as Hong Kong Dissident #1 – was arrested in Hong Kong and jailed on political charges. In addition, in April 2019, Wang flew from the PRC to Queens carrying a handwritten document with the names and non-public contact information for dozens of other well-known PRC dissidents, including other Hong Kong democracy activists who were subsequently arrested by the PRC in 2019 and 2020.
The complaint also alleges that, during an interview in Queens on Aug. 2, 2017, Wang lied to federal law enforcement, falsely denying that he had contacts with PRC officials or the MSS when in fact he had been secretly reporting on U.S. residents to the MSS. Wang later admitted much of his criminal conduct to an undercover member of law enforcement and during a subsequent interview with agents.
Wang was arrested this morning in the Eastern District of New York and is scheduled to make his initial appearance this afternoon before U.S. Magistrate Judge James R. Cho. If convicted, Wang faces a statutory maximum penalty of 20 years in prison.
Assistant U.S. Attorney Artie McConnell for the Eastern District of New York is prosecuting the case, with assistance from Trial Attorney Scott A. Claffee of the National Security Division’s Counterintelligence and Export Control Section.
United States v. Fan “Frank” Liu, Matthew Ziburis, and Qiang “Jason” Sun
Fan “Frank” Liu, 62, of Long Island, New York, and Matthew Ziburis, 49, of Oyster Bay New York, are charged with conspiring to act as agents of the PRC government. Liu, Ziburis and co-defendant Quiang “Jason” Sun, 40, of the PRC, are charged with conspiring to commit interstate harassment and criminal use of a means of identification. Liu and Sun are charged with conspiring to bribe a federal official in connection with their scheme to obtain the tax returns of a pro-democracy activist residing in the United States.
According to the complaint, Liu is president of a purported media company based in New York City, while Ziburis is a former correctional officer for the State of Florida and a bodyguard. Sun is a PRC-based employee of an international technology company.
According to the complaint, Liu and Ziburis have been operating under Sun’s direction and control to discredit pro-democracy PRC dissidents residing in the United States – including in New York City, California and Indiana – by spying on them and disseminating negative information about them. For example, at Sun’s direction, Liu paid a private investigator in Queens to bribe an IRS employee to obtain the federal tax returns of one of the dissidents. The private investigator was cooperating with law enforcement, and no Internal Revenue Service employee received a bribe payment. The defendants planned to publicly disclose the dissident’s potential tax liabilities to discredit him. The co-conspirators also made plans to destroy the artwork of a dissident artist whose work is critical of the PRC government, and the artist’s sculpture depicting PRC President Xi Jinping as a coronavirus molecule was demolished in the Spring 2021. Sun has paid both Liu and Ziburis for these efforts to stalk, harass and surveil dissidents residing in the United States.
As part of their efforts, the defendants electronically allegedly spied on the pro-democracy activists. For example, posing as an art dealer interested in purchasing the artwork of the dissident artist, Ziburis secretly installed surveillance cameras and GPS devices at a dissident’s workplace and in his car. While in the PRC, Sun watched the live video feed and location data from these devices. The defendants made similar plans to install surveillance equipment at the residences and on the vehicles of two other dissidents. Liu and Ziburis planned to gain access to one such residence by posing as a member of an international sports committee.
The defendants also planned to interview the dissidents in mock media sessions, using the cover of Liu’s purported media organizations. Sun provided outlines for these fake interviews and designed questions to elicit answers that were intended to humiliate or discredit the dissidents. The defendants intended that audio or video clips of these statements could be used in PRC propaganda materials targeting the dissidents.
Liu and Ziburis were arrested yesterday in the Eastern District of New York and are scheduled to make their initial appearances this afternoon in Brooklyn before U.S. Magistrate Judge James R. Cho. Sun remains at large.
If convicted, Liu and Ziburis face a maximum statutory penalty of five years in prison for conspiring to commit interstate harassment, and up to 15 years in prison for criminal use of a means of identification. Liu and Sun face up to five years each for conspiring to bribe a federal official. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant U.S. Attorneys Alexander A. Solomon and Emily J. Dean for the Eastern District of New York are prosecuting the case, with assistance from Assistant U.S. Attorney Brian D. Morris of the Office’s Asset Forfeiture Section and Trial Attorney Scott A. Claffee of the National Security Division’s Counterintelligence and Export Control Section.
The FBI is investigating these cases.
If you are in the United States, including a U.S. territory, your freedom of speech is protected, regardless of your citizenship. To report threats or intimidation by a foreign government, contact the FBI online at tips.fbi.gov or call 1-800-CALL-FBI (1-800-225-5324). For more information on transnational repression investigations, visit Transnational Repression | FBI.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Brooklyn Man Pleads Guilty to Robbery and Firearm Attack on New York City Police Department OfficersRead the Press Release
Dzenan Camovic pleaded guilty yesterday in federal court in Brooklyn to robbing a New York City Police Department (NYPD) officer’s firearm and discharging the firearm at NYPD officers during the course of the robbery. The offenses took place on June 3, 2020, when Camovic attacked multiple police officers on patrol in Brooklyn. The proceeding was held before United States District Judge Rachel P. Kovner on March 15, 2022.
When sentenced, Camovic faces 30 years’ imprisonment pursuant to the terms of his plea agreement with the government. Camovic has stipulated that the terrorism enhancement to the United States Sentencing Guidelines—an enhanced sentence for certain criminal conduct that was calculated to influence or affect the conduct of government by intimidation or coercion—is applicable to his offense. As part of his plea agreement, Camovic, a Bosnian citizen illegally in the United States, agreed to the entry of an order of removal so that he will be deported after completing his sentence. Camovic also pleaded guilty today in State Supreme Court in Brooklyn to charges arising out of the same conduct.
Breon Peace, United States Attorney for the Eastern District of New York, Michael J. Driscoll, Assistant Director-in-Charge, FBI, New York Field Office and Keechant Sewell, Commissioner, NYPD, announced the guilty plea.
“With this guilty plea, Camovic admitted robbing a police officer’s gun and shooting that gun during an extremely violent attack on officers keeping the city safe during a public emergency,” stated United States Attorney Peace. “Inspired by terrorists, the defendant viciously attacked officers, stabbing one officer in the neck and shooting another in the hand. Protecting our community from terrorist attacks will always be a priority of this Office, and we will bring to justice those who commit such reprehensible acts against the community and against our law enforcement partners.”
Mr. Peace expressed his appreciation to the FBI’s New York Joint Terrorism Task Force for its outstanding work on the case and the Kings County District Attorney’s Office for their assistance.
“When Mr. Camovic ambushed and feloniously assaulted several heroic NYPD officers, it was also an attack on our city and our collective sense of security. Yesterday’s plea ensures Mr. Camovic will never again be in a position to commit such a heinous act on our soil. His case should serve as an example of the FBI’s unwavering commitment to protecting our communities against extremists, while standing shoulder-to-shoulder with our law enforcement partners,” stated FBI Assistant Director-in-Charge Driscoll.
“An attack on police officers who are sworn to protect the public is an attack on all of us,” stated NYPD Commissioner Sewell, “and our society will never tolerate such destructive violence. This prosecution affirms our joint commitment to confront, combat, and defeat violent extremism in all its forms, anywhere. I commend the NYPD detectives, FBI agents, and representatives of the more than 50 agencies that make up the New York Joint Terrorism Task Force for their investigation leading to today’s guilty plea.”
As set forth in court filings and during the plea proceeding, on the evening of June 3, 2020, in the midst of a public health emergency and while New York City was under a nightly curfew order due to civil unrest, Camovic attacked several uniformed NYPD officers assigned to an anti-looting post near the intersection of Flatbush and Church Avenues in Brooklyn. At approximately 11:30 p.m., Camovic walked past two police officers on foot patrol and appeared to crouch for several minutes watching them. Camovic then moved around the block in an apparent effort to approach the two police officers from behind.
At approximately 11:50 p.m., Camovic rounded the corner from Flatbush Avenue onto Church Avenue and stabbed one of the officers (“Officer 1”) in the neck with a knife. After stabbing Officer 1, Camovic chased the second officer (“Officer 2”), lunging at him and attempting to stab him. Camovic then ran back to Officer 1, attacked him, forcibly took control of Officer 1’s firearm and fired multiple shots at Officer 2 and other officers who responded to the scene. Responding officers ultimately shot Camovic and took him into custody. Several officers suffered injuries during Camovic’s attack and robbery, including Officer 1, who was stabbed in the neck, and Officer 2, who was shot in the hand.
During his attack on the police officers, Camovic repeatedly shouted “Allahu Akbar,” an Arabic phrase meaning “God is the greatest,” that has been used by perpetrators of violent jihadist terror attacks during the commission of violent attacks. Prior to the attack, Camovic possessed a significant volume of radical jihadist propaganda.
The government’s case is being handled by the Office’s National Security and Cybercrime Section. Assistant United States Attorneys Craig R. Heeren, Artie McConnell and Josh Hafetz are in charge of the prosecution.
The Defendant:
DZENAN CAMOVIC
Age: 22
Brooklyn, New YorkE.D.N.Y. Docket No. 20-CR-326 (RPK)
Leader of Violent Gang on Staten Island Indicted for Murder in-Aid-of RacketeeringRead the Press Release
A superseding indictment was filed today in federal court in Brooklyn charging John Pena, also known as “Tragedy,” “Don Tragg,” “Last Don” and “Money Baggz,” with murder in-aid-of-racketeering for the March 10, 2021 murder of Mark Bajandas on Staten Island. The superseding indictment also charges Pena with causing death through use of a firearm, being a felon in possession of ammunition, and conspiring to distribute and possess with intent to distribute marijuana and crack cocaine. Pena was previously arrested in June 2021 on an indictment charging him with being a felon in possession of ammunition related to Bajandas’s murder and he was ordered detained in federal custody pending trial. Pena will be arraigned at a later date.
Breon Peace, United States Attorney for the Eastern District of New York and Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI) and Keechant L. Sewell, Commissioner, New York City Police Department (NYPD), announced the charges.
“As alleged, the defendant, a leader of a violent street gang, unleashed a barrage of gunfire on a public street, killing the victim and placing our community in grave danger,” stated United States Attorney Peace. “This Office, working closely with our federal and local law enforcement partners, is relentlessly pursuing gang members who terrorize our neighborhoods with senseless acts of gun violence, and we will not rest until this threat is neutralized.”
Mr. Peace expressed his appreciation to the Richmond County District Attorney’s Office for its assistance on the investigation.
“As alleged, Pena murdered a perceived rival, who sustained 18 gunshot wounds in the attack,” stated FBI Assistant Director-in-Charge Driscoll. “His apparent lack of respect for the sanctity of human life will now be met with appropriate consequences imposed by the federal criminal justice system. Along with our NYPD partners, we will continue to be relentless in addressing the scourge of gang and gun violence that plagues our city.”
“The elimination of violent streets gangs is an absolute precondition to the sustainable prosperity and justice that New Yorkers deserve,” stated NYPD Commissioner Sewell. “Everyone has a right to live in peace and safety. But gang activity – particularly the carrying and indiscriminate shooting of illegal guns on our streets – injects fear into the daily lives of people in our communities. The NYPD, in close partnership with the FBI and the U.S. Attorney for the Eastern District, will continue to use every tool at our disposal to identify, arrest, and hold accountable these criminals.”
As alleged in the superseding indictment, the Gorilla Stone Mafia (or “GSM”) is a subgroup of the Untouchable Gorilla Stone Nation, which is a faction of the nationwide Bloods street gang comprised primarily of individuals residing in and around the Stapleton neighborhood of Staten Island. Members of GSM use intimidation, threats of violence and acts of violence, including murder, robbery and assault, to preserve and protect GSM’s power, territory, and criminal ventures, and to expand the GSM’s criminal operations. They use drug trafficking, gun trafficking, robbery, fraud and trafficking in stolen identities as means of obtaining money.
According to court filings, Pena was the leader of the Gorilla Stone Mafia. In the early morning hours of March 10, 2021, Pena fired multiple gunshots from close range at Bajandas, a former GSM associate and perceived rival, killing him. Bajandas suffered at least 18 gunshot wounds to his upper torso and extremities. The murder occurred after Pena and Bajandas had attended a memorial earlier in the evening to commemorate the death of Avanti Brock, a former GSM member who was murdered approximately one year earlier.
If convicted, Pena faces a mandatory sentence of life in prison.
The charges in the superseding indictment are allegations and the defendant is presumed innocent unless and until proven guilty.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. As part of the program, U.S. Attorney’s 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 Saritha Komatireddy, Matthew R. Galeotti, Tara B. McGrath, and Garen Marshall are in charge of the prosecution.
The Defendant:
JOHN PENA
Age: 31
Staten Island, New YorkE.D.N.Y. Docket No. 21-CR-176 (S-1) (AMD)
Brooklyn Man Indicted for Gunpoint Robberies of More Than $1 MillionRead the Press Release
A 10-count superseding indictment was unsealed today in federal court in Brooklyn charging Robert Rodriguez with Hobbs Act robbery, Hobbs Act robbery conspiracy, and related firearms crimes for planning and executing four armed robberies targeting the owner and patrons of a Queens check-cashing business in July 2020 and September 2021. Rodriguez was arrested today and is scheduled to be arraigned this afternoon before United States Magistrate Judge Taryn A. Merkl. Rodriguez’s co-defendant, Raymundo Heyaime Sanchez, was previously arrested and indicted for Hobbs Act robbery and related crimes for his role in one of the four robberies charged in the superseding indictment. Sanchez is currently detained pending trial.
Breon Peace, United States Attorney for the Eastern District of New York, John B. DeVito, Special Agent-in-Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives, New York Field Division (ATF), and Keechant L. Sewell, Commissioner, New York City Police Department (NYPD), announced the charges.
“As alleged in the superseding indictment, the defendant is charged with the brazen gunpoint robberies of the owner and customers of a Queens check cashing business,” stated United States Attorney Peace. “Such openly menacing and violent conduct will not be tolerated. This Office will vigorously prosecute criminals who allegedly commit violent crimes using guns and endanger the safety and security of our communities.”
“Today’s arrest of an armed violent criminal by the ATF/NYPD Sparta Task Force is another example of our unwavering commitment to aggressively pursue and investigate acts of violence involving the use of firearms in our communities” stated ATF Special Agent-in- Charge DeVito. “The defendant’s willful disregard for the safety and security of our citizens was evident by preying on both the business and customers alike. Thanks to our partners in the United States Attorney’s Office and the NYPD, this defendant will now have to answer for his violent actions in a court of law.”
“Today’s indictment is another example of our laser-like focus on combating violent crime and holding accountable anyone who endangers people on our streets,” stated NYPD Commissioner Sewell. “If you carry an illegal gun in New York City – and especially if you use that gun to terrorize our communities – you will be arrested and charged accordingly. Thanks to the combined efforts of the NYPD and our partners at the ATF and the office of the U.S. Attorney for the Eastern District of New York, the accused in this case now faces the prospect of significant federal prison time.”
As set forth in court filings, Rodriguez, Sanchez, and a co-conspirator targeted the owner of a check-cashing business located in Jamaica, New York. On July 3, 2020, after conducting surveillance of the owner’s home and business, the owner was confronted in the driveway of the business by masked bandits who pistol-whipped him on the back of the head before robbing him of more than $1 million. Rodriguez subsequently committed three additional robberies of the business’s customers more than a year later. On each occasion, Rodriguez purportedly waited in a vehicle near the check-cashing business until a customer departed, at which point he followed each victim by car before ultimately robbing the customer at gunpoint.
The charges in the indictment are allegations, and the defendants are presumed innocent unless and until proven guilty. If convicted of the charges, the defendants face a mandatory minimum of 84 months’ imprisonment and up to life in prison.
The government’s case is being prosecuted by Assistant United States Attorneys Lindsey R. Oken and Adam Toporovsky.
The Defendants:
ROBERT RODRIGUEZ (also known as “Chicho”)
Age: 37
Brooklyn, New YorkRAYMUNDO HEYAIME SANCHEZ
Age: 25
Brooklyn, New YorkE.D.N.Y. Docket No. 21-CR-465 (S-1)(PKC)
Turkish National Sentenced to 27 Months for Orchestrating “Birth Tourism” Health Care Fraud Scheme on Long IslandRead the Press Release
Earlier today, in federal court in Central Islip, Ibrahim Aksakal was sentenced by United States District Judge Joanna Seybert to 27 months’ imprisonment for conspiring to commit health care and wire fraud in connection with a so-called “birth tourism” scheme that Aksakal operated in Suffolk County between approximately 2017 and 2020. The scheme facilitated pregnant Turkish women fraudulently entering the United States using tourist and business visas to give birth so that their children would obtain birthright citizenship and medical benefits. The Court also ordered Aksakal to pay restitution in the amount of $1,039,723.63, and forfeiture in the amount of $397,500.
Breon Peace, United States Attorney for the Eastern District of New York; Raymond A. Tierney, District Attorney for Suffolk County; Ricky J. Patel, Acting Special Agent-in-Charge, Homeland Security Investigations, New York (HSI); Scott J. Lampert, Special Agent-in-Charge, U.S. Department of Health and Human Services, Office of Inspector General, New York Region (HHS-OIG); Frank T. Walsh, Jr., Acting Medicaid Inspector General, New York State Office of the Medicaid Inspector General (OMIG); and Rodney K. Harrison, Commissioner, Suffolk County Police Department (SCPD), announced the sentence.
From at least January 2017 to September 2020, Aksakal and his co-conspirators advertised a birth tourism scheme on two Turkish-language Facebook pages. The approximate $7,500 fee charged to each pregnant woman would include transportation, “insurance” to cover the costs of pre-natal, delivery, and post-natal medical care. Aksakal and his co-conspirators also instructed the women to conceal their pregnancies.
The pregnant women stayed in one of seven “birth houses” that Aksakal maintained in Center Moriches, Dix Hills, East Northport, East Patchogue, Smithtown and West Babylon, New York. As a result of the scheme, Medicaid disbursed more than $1 million in fraudulently obtained benefits.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorneys Bradley T. King, Oren Gleich, and Special Assistant United States Attorney Jennifer Sacks are in charge of the prosecution.
The Defendant:
IBRAHIM AKSAKAL (also known as “Dennis”)
Age: 50
East Patchogue, New YorkE.D.N.Y. Docket No. 20-CR-400 (JS)
Owners and Operators of Online Cryptocurrency Companies Indicted for Defrauding InvestorsRead the Press Release
An 11-count indictment was unsealed today in federal court in Brooklyn charging Dwayne Golden, Gregory Aggesen, and Marquis Demacking Egerton, the owners and operators of the web-based virtual currency companies EmpowerCoin, ECoinPlus and Jet-Coin, with conspiracy to commit wire fraud and money laundering, and related substantive counts, in connection with a sophisticated scheme to steal assets from investors. Golden, Aggesen and William White were also charged with conspiracy to obstruct justice, obstructing justice and tampering with evidence. The defendants were arrested this morning and will be arraigned in the Eastern District of New York at a later date.
Breon Peace, United States Attorney for the Eastern District of New York, and Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI) announced the arrests and charges.
“As alleged, the defendants engaged in a sophisticated scheme that preyed on unsuspecting investors nationwide with false promises of guaranteed returns and virtual currency trading opportunities. When the companies collapsed and their criminal conduct was about to be exposed, the defendants attempted to cover their tracks and destroy evidence,” stated United States Attorney Peace. “The scams may have been online and virtual, but these charges are very real. This Office is committed to protecting the public from criminals who view cryptocurrency as a new frontier to perpetrate old fashioned crimes of fraud and money laundering.”
Mr. Peace also thanked the Commodity Futures Trading Commission for their assistance in this matter.
“Whether we’re dealing with virtual currency or cold-hard cash, schemers continue to capitalize on investors’ best intentions and pocket their ill-gotten gains,” stated FBI Assistant Director-in-Charge Driscoll. “As alleged, those charged today defrauded their victims and generated more that $40 million for their own benefit. This office remains committed to rooting out fraud in all its forms.”
According to the indictment, between April 2017 and August 2017, Golden, Aggesen, and Egerton, together with others, operated a series of web-based virtual currency companies known as EmpowerCoin, ECoinPlus and Jet-Coin. The websites for EmpowerCoin, ECoinPlus and Jet-Coin fraudulently promised investors and potential investors guaranteed fix returns on virtual currency investments. They falsely promised investors and potential investors that these returns were made possible through overseas virtual currency trading operations. Investors and potential investors were encouraged to invest in the companies with either cash or Bitcoin. In reality, the assets were used to repay other investors or simply stolen, including by Golden, Aggesen and Egerton. Golden maintained exclusive access to the Bitcoin and often siphoned Bitcoin funds off the top before paying any investors. The companies collapsed shortly after receiving the investors’ assets, without having engaged in trading activity. In total, EmpowerCoin, ECoinPlus and Jet-Coin received more than $40 million from investors.
The indictment further alleges that, from July 2017 to the present, Golden, Aggesen and White conspired to obstruct a Federal Trade Commission (“FTC”) investigation and a federal criminal grand jury investigation into the fraudulent schemes. Golden, Aggesen and White allegedly destroyed evidence, and White, on Aggesen’s behalf, provided false and misleading information to the FTC and in response to a federal grand jury subpoena.
The charges in the indictment are allegations, and the defendants are presumed innocent unless and until proven guilty. If convicted, the defendants face up to 20 years in prison.
If you were an EmpowerCoin.com, ECoinPlus.com and/or Jet-Coin.com customer and would like to file a complaint, please visit www.iC3.gov. Please reference “EmpowerCoin,” “ECoinPlus” or “Jet-Coin” in your complaint.
The government’s case is being handled by the Office’s Business and Securities Fraud Section. Assistant United States Attorneys Alixandra E. Smith, Catherine M. Mirabile and Nick M. Axelrod are in charge of the prosecution, with the assistance of Assistant United States Attorney Claire Kedeshian of the Office’s Asset Recovery Section who is handling forfeiture matters.
The Defendants:
DWAYNE GOLDEN
Age: 57
Harrisburg, PennsylvaniaGREGORY AGGESEN
Age: 58
Stanfordville, New YorkMARQUIS DEMACKING EGERTON (also known as “Mardy Eger”)
Age: 58
Washington, North CarolinaWILLIAM WHITE
Age: 54
Harrisburg, PennsylvaniaE.D.N.Y. Docket No. 21-CR-88 (MKB)
Contractor Pays $930,000 to Settle False Claims Act Allegations Relating to Medical Services Contracts at State Department and Air Force Facilities in Iraq and AfghanistanRead the Press Release
BROOKLYN, NY – Comprehensive Health Services, LLC (CHS), located in Florida, has agreed to pay $930,000 to resolve allegations that it violated the False Claims Act by falsely representing to the State Department and the Air Force that it complied with contract requirements relating to the provision of medical services at State Department and Air Force facilities in Iraq and Afghanistan. This is the Department of Justice’s first resolution of a False Claims Act case involving cyber fraud since the launch of the Department’s Civil Cyber-Fraud Initiative, which aims to combine the Department’s expertise in civil fraud enforcement, government procurement, and cybersecurity to combat new and emerging cyber threats to the security of sensitive information and critical systems
Breon Peace, United States Attorney for the Eastern District of New York; Brian M. Boynton, Principal Deputy Attorney General of the Justice Department’s Civil Division; Roger B. Handberg, United States Attorney for the Middle District of Florida; Elisabeth “Elli” Kaminsky, Special Agent-in-Charge, United States Department of State, Office of Investigations; and Nicholas J. Groesbeck, Special Agent-in-Charge, Air Force Office of Special Investigations, Procurement Fraud Detachment 4, Wright-Patterson AFB, Ohio (OSI), announced the settlement.
CHS is a provider of global medical services that contracted to provide medical support services at government-run facilities in Iraq and Afghanistan. Under one of the contracts, CHS submitted claims to the State Department for the cost of a secure electronic medical record (EMR) system to store all patients’ medical records, including the confidential identifying information of United States service members, diplomats, officials, and contractors working and receiving medical care in Iraq. The United States alleged that, between 2012 and 2019, CHS failed to disclose to the State Department that it had not consistently stored patients’ medical records on a secure EMR system. When CHS staff scanned medical records for the EMR system, CHS staff saved and left scanned copies of some records on an internal network drive, which was accessible to non-clinical staff. Even after staff raised concerns about the privacy of protected medical information, CHS did not take adequate steps to store the information exclusively on the EMR system.
The State Department and Air Force contracts also required CHS to provide medical supplies, including controlled substances, that were approved by the U.S. Food and Drug Administration (FDA) or European Medicines Agency (EMA) and manufactured in accordance with federal quality standards. The United States alleged that, between 2012 and 2019, CHS falsely represented to the State Department and Air Force that certain substances provided under those contracts were approved by the FDA or EMA. CHS lacked a Drug Enforcement Agency license necessary for exporting controlled substances from the United States to Iraq. CHS obtained controlled substances by having CHS physicians based in Florida send letters requesting that a South African physician prescribe the controlled substances. A South African shipping company then received controlled substances that were not approved by the FDA or EMA and sent them to CHS in Iraq, where CHS supplied the unapproved controlled substances to patients under the State Department and Air Force contracts.
“Protecting the health and safety of servicemembers, diplomats, and other government employees working abroad is of utmost importance. The defendants were required to maintain personal health information securely and provide only approved pharmaceuticals to patients. This settlement serves notice to federal contractors that they will be held accountable for conduct that puts private medical records and patient safety at risk,” stated United States Attorney Breon Peace for the Eastern District of New York. “We are grateful for the support of our colleagues in the Middle District of Florida, the State Department, and the Air Force for their assistance in investigating these important claims.”
“This settlement demonstrates the department’s commitment to use its civil enforcement tools to pursue government contractors that fail to follow required cybersecurity standards, particularly when they put confidential medical records at risk,” stated Principal Deputy Assistant Attorney General Brian M. Boynton of the Justice Department’s Civil Division. “We will continue to ensure that those who do business with the government comply with their contractual obligations, including those requiring the protection of sensitive government information.”
“Government contractors should never disregard their obligations when providing medical care to members of the military,” stated United States Attorney Roger B. Handberg for the Middle District of Florida. “We thank our colleagues in the Eastern District of New York, as well as the investigative agencies who supported this effort, for their steadfast pursuit of this important investigation.”
“This settlement demonstrates the commitment State Department, Office of Inspector General, Special Agents have to protect the safety, well-being, and personal information of State Department personnel. Our hope is that this outcome will send a clear message that cutting corners on State Department contracts has significant consequences.” stated Special Agent in Charge Elisabeth “Elli” Kaminsky of the U.S. Department of State OIG, Office of Investigations.
“The Department of the Air Force Office of Special Investigations (OSI) is undeterred in its approach to hunting down fraud within our Foreign Military Sales programs and ensuring the offenders are held accountable,” stated Air Force OSI Special Agent-in-Charge Groesbeck. “We applaud the complainant for coming forward, which allowed our joint partners to protect the governments procurement process and carry out the warfighting mission.”
The civil settlement includes the resolution of two actions brought under the qui tam or whistleblower provisions of the False Claims Act against CHS. Under the qui tam provisions of the False Claims Act, a private party can file an action on behalf of the United States and receive a portion of the settlement if the government takes over the case and reaches a monetary agreement with the defendant. The qui tam cases are captioned United States ex rel. Lawler v. Comprehensive Health Servs., Inc. et al., Case No. 20-cv-698 (E.D.N.Y.) and United States ex rel. Watkins et al. v. CHS Middle East, LLC, Case No. 17-cv-4319 (E.D.N.Y.).
The investigation and resolution of this matter demonstrates the government’s emphasis on combatting cyber-fraud. On October 6, 2021, the Deputy Attorney General announced the Department’s Civil Cyber-Fraud Initiative, which aims to hold accountable entities or individuals that put U.S information or systems at risk by knowingly providing deficient cybersecurity products or services, knowingly misrepresenting their cybersecurity practices or protocols, or knowingly violating obligations to monitor and report cybersecurity incidents and breaches. Information on how to report cyber fraud can be found here.
The resolutions obtained in this matter were the result of a coordinated effort between the United States Attorney’s Office for the Eastern District of New York, the Fraud Section of the Commercial Litigation Branch of the Justice Department’s Civil Division, the U.S. Attorney’s Office for the Middle District of Florida, the United States Department of State Office of Inspector General, and the United States Air Force.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
The government’s case was handled by Assistant U.S. Attorney Christopher Volpe and former Assistant U.S. Attorney Lisa Kutlin of the Eastern District of New York, and Assistant U.S. Attorney Jeremy Bloor of the Middle District of Florida.
Long Island Medical Doctor Pleads Guilty to Medicare Billing Fraud SchemeRead the Press Release
Earlier today, in federal court in Central Islip, Morris Barnard, a medical doctor practicing in Great Neck, New York, pleaded guilty to health care fraud in connection with billing Medicare for millions of dollars for medical procedures that were never actually performed. The proceeding was held before United States Magistrate Judge Anne Y. Shields.
Breon Peace, United States Attorney for the Eastern District of New York, Scott Lampert, Special Agent-in-Charge, Health & Human Services and Michael Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI) announced the guilty plea.
“With today’s guilty plea, Dr. Barnard admits to committing a multi-million dollar fraud on the Medicare program by billing for procedures he did not perform,” stated United States Attorney Peace. “By claiming to render services to disabled and other vulnerable patients, Dr. Barnard not only pocketed taxpayer funds that were intended to help beneficiaries in need, he also betrayed his oath for profit. We will continue to work closely with our law enforcement partners to protect the integrity of taxpayer-funded health care programs.”
“Money that’s allocated for Medicare-approved services, and fraudulently paid out to providers who don’t actually perform these services, is a crime that’s ultimately paid for by taxpayers themselves. Our office is committed to rooting out this type of fraudulent activity and maintaining the integrity of our government-sponsored health care programs,” stated FBI Assistant Director-in Charge Driscoll.
“The defendant’s actions diverted scarce taxpayer funds from the Medicare program for personal enrichment, while taking advantage of vulnerable individuals,” stated HHS-OIG Special Agent-in-Charge Lampert. “Working with our law enforcement partners, HHS-OIG will continue to ensure that providers that bill federally funded health care programs do so in an honest manner, and criminals will be held accountable.”
From October 2015 through February 2020, Dr. Barnard submitted over $3 million in billings to Medicare for colonoscopy and gastroenterological procedures that were not done. Most of these billings indicated that the services were rendered to disabled beneficiaries, who were living in residential group homes. Medicare reimbursed approximately $1.4 million of these false claims, none of which Dr. Barnard was entitled to receive.
The government’s case is being prosecuted by Assistant United States Attorneys Erin Argo, Charles P. Kelly and Madeline O’Connor of the Long Island Criminal Division.
The Defendant:
MORRIS BARNARD
Age: 58
Great Neck, New YorkE.D.N.Y. Docket No. 21-018 (GRB)
United States Files Enforcement Action to Stop Deceptive Marketing of Herbal Tea Product Advertised as Covid-19 TreatmentRead the Press Release
UPDATE
The Complaint described in the press release below was dismissed by the Court on March 18, 2025, pursuant to a stipulation of voluntary dismissal entered into by the parties. See No. 22-CV-1159 (ENV), ECF No. 71.
BROOKLYN, NY – The United States Attorney’s Office for the Eastern District of New York and the Department of Justice, Consumer Protection Branch, together with the Federal Trade Commission (FTC) and the Food and Drug Administration (FDA), today announced a civil enforcement action against defendants B4B Earth Tea LLC, B4B Corp., and Andrew Martin Sinclair for alleged violations of the COVID-19 Consumer Protection Act, the Federal Trade Commission Act, and the Federal Food, Drug, and Cosmetic Act.
According to a complaint filed in federal court in Brooklyn, the defendants advertised that their herbal tea product, Earth Tea, could prevent or treat COVID-19. For example, the defendants allegedly advertised on social media that Earth Tea is the “most effective [t]reatment against” COVID-19, that it “works within minutes” and will enable consumers to “get out of quarantine within 24 hours guaranteed.” The defendants had no competent or reliable scientific evidence to support those claims. Further, the defendants allegedly made deceptive statements about a purported scientific study to bolster their unproven COVID-19 claims. The complaint also alleges that Earth Tea is an unapproved new drug that the defendants are selling in violation of the Federal Food, Drug, and Cosmetic Act. The complaint seeks civil penalties, as well as a permanent injunction to stop the defendants from continuing their unlawful marketing and sales of Earth Tea.
The COVID-19 Consumer Protection Act, passed by Congress in December 2020, prohibits deceptive acts or practices associated with the treatment, cure, prevention, mitigation, or diagnosis of COVID-19. Persons who violate the COVID-19 Consumer Protection Act may be subject to civil penalties, injunctive relief, and other remedies available under the FTC Act. The complaint also alleges violations of the FTC Act, which prohibits unfair and deceptive conduct and false advertising.
The Federal Food, Drug, and Cosmetic Act provides that a product is an unapproved new drug if it is intended for use in the diagnosis, cure, mitigation, treatment, or prevention of disease in humans but is not generally recognized as safe and effective for its intended uses and is not the subject of an FDA approval. Remedies for violation of the Federal Food, Drug, and Cosmetic Act include injunctive relief.
“COVID-19 has tragically claimed nearly one million lives in this country and close to six million lives worldwide,” stated United States Attorney Breon Peace. “Unfortunately, there are too many people who are taking advantage of this crisis by pushing alleged treatment products that are nothing more than snake oil. We will not tolerate attempts to make a dishonest dollar while putting our communities at risk during a pandemic.”
“The Department of Justice will not tolerate individuals or companies seeking to profit from the COVID-19 public health emergency by unlawfully advertising unproven products,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Department of Justice’s Civil Division. “The department is committed to protecting consumers and enforcing the COVID-19 Consumer Protection Act and the FDCA against those who unlawfully market unproven COVID-19 treatments.”
“Products like this may delay patients from seeking proven treatments from their health care provider. Preying on patients’ vulnerabilities during the COVID-19 pandemic is unacceptable,” stated Judy McMeekin, Pharm.D., FDA’s Associate Commissioner for Regulatory Affairs. “The FDA will continue to actively monitor the U.S. market for any companies or individuals falsely marketing products with claims it prevents or treats COVID-19, and will take actions against those who violate the law and endanger patients.”
“Without any scientific evidence, the defendants claimed that drinking their herbal tea is more effective in preventing COVID-19 than approved vaccines, and cures anyone who has gotten ill within 24 hours,” stated Samuel Levine, Director of the FTC’s Bureau of Consumer Protection. “In bringing this matter with our partners at the Department of Justice and the Food and Drug Administration, the Commission continues its commitment to using every tool available to stop and deter those who would treat the pandemic as opportunity to peddle bogus treatments.”
This matter is being handled by Assistant U.S. Attorney Michael Blume of the U.S. Attorney’s Office for the Eastern District of New York, Senior Trial Attorney James T. Nelson and Trial Attorney Zachary A. Dietert of the Civil Division’s Consumer Protection Branch. Robert Van Someren Greve represents the FTC, and Michael Shane represents the FDA.
For more information about the Consumer Protection Branch and its enforcement efforts, visit its website at https://www.justice.gov/civil/consumer-protection-branch. For more information about the FTC, visit its website at https://www.FTC.gov.
The United States Attorney’s Office for the Eastern District of New York recently announced a Consumer Protection Team in the Office’s Civil Division at https://www.justice.gov/usao-edny/pr/united-states-attorney-breon-peace-announces-formation-consumer-protection-team-office. The Consumer Protection Team will pursue all appropriate measures to stop culpable entities and individuals that engage in conduct threatening the health, safety, economic security, or dignity of potentially vulnerable individuals. For more information on the U.S. Attorney’s Office, or to report suspected consumer fraud, please visit https://www.justice.gov/usao-edny.
The Defendants:
B4B Earth Tea LLC
B4B Corp.
Andrew Martin Sinclair
E.D.N.Y. Docket No. 22-CV-1159
United States Attorney Breon Peace Announces Formation of Consumer Protection Team in the Office’s Civil DivisionRead the Press Release
Breon Peace, United States Attorney for the Eastern District of New York, announced today the creation of a Consumer Protection Team in the Office’s Civil Division. The Consumer Protection Team, comprised of six Civil Division Assistant U.S. Attorneys, including the Civil Division’s Chief of Affirmative Civil Enforcement, enhances the Office’s focus on protecting the health, safety, economic security, and dignity of individuals in the Eastern District of New York and nationwide, including our most vulnerable residents – older adults and children. The Office has responsibility for the enforcement of our nation’s laws in the Eastern District of New York, which encompasses three of the five boroughs of New York City – Brooklyn, Queens and Staten Island – and Nassau and Suffolk Counties on Long Island. The Eastern District of New York encompasses over eight million people.
This Office has long been committed to bringing high-impact consumer protection cases. Together with its law enforcement partners, the Office has enjoined robocall scams, interdicted mass mailing fraud schemes, stopped the distribution of adulterated and misbranded dietary supplements, and brought other first-of-a-kind cases in this area. The Consumer Protection Team will strengthen the Office’s capacity to investigate and enforce laws that protect potentially vulnerable individuals from current and emerging consumer threats. The Consumer Protection Team will pursue all appropriate measures to stop culpable entities and individuals that engage in conduct threatening the health, safety, economic security, or dignity of those individuals, including affirmative civil enforcement cases seeking injunctive relief, civil penalties, equitable monetary relief, and corrective action. Among the areas that the Consumer Protection Team will focus on are financial frauds and scams; fraudulent and deceptive marketing practices; consumer product safety; food, drug, and dietary supplement safety; and other conduct that may cause or threaten to cause serious harm to the people in this district and throughout the country.
In announcing the formation of the Consumer Protection Team, United States Attorney Peace stated: “I am proud to announce the formation of our Consumer Protection Team which will enhance our Office’s ability to protect older adults, children, and other potentially vulnerable victims from insidious fraud schemes and other illegal conduct committed by those who disregard the health, safety, and economic security of our residents for their own gain. Our goal is to use all available means to protect the residents of the Eastern District and improve their lives. The Consumer Protection Team is a critical part of the Office’s longstanding commitment to vigorously pursue those who prey on the public through increasingly sophisticated schemes.”
“The Civil Division’s Consumer Protection Branch is pleased to strengthen its longstanding partnership with the U.S. Attorney’s Office for the Eastern District of New York,” stated Deputy Assistant Attorney General Arun G. Rao for the Justice Department’s Consumer Protection Branch. “We look forward to working with the office’s newly-formed Consumer Protection Team to advance significant consumer protection investigations and litigation. Our combined efforts will help safeguard the health, safety, economic security, and identity integrity of older adults, children, and other potentially vulnerable individuals both in the Eastern District of New York and throughout the United States.”
The Consumer Protection Team is led by the Civil Division’s Chief of Affirmative Civil Enforcement, Bonni J. Perlin; the Consumer Protection Team is made up of Assistant U.S. Attorneys Michael Blume, Michael Castiglione, David Cooper, Melanie Speight, and Kevin Yim. The Consumer Protection Team is overseen by Civil Division Chief Joseph A. Marutollo and Civil Division Deputy Chief Richard K. Hayes. The Team will continue to partner and coordinate with the Department of Justice’s Consumer Protection Branch and federal agencies.
Staten Island Man Sentenced to 30 Years in Prison for Sexual Exploitation of a ChildRead the Press Release
Earlier today, in federal court in Brooklyn, Blaise Caroleo was sentenced by United States District Judge Eric N. Vitaliano to 30 years in prison for sexual exploitation of a minor. Caroleo pleaded guilty to the charge in November 2019.
Breon Peace, United States Attorney for the Eastern District of New York, announced the sentence.
“Today’s lengthy sentence underscores the commitment of this Office to seeking justice and healing for children who are sexually abused and exploited,” stated United States Attorney Peace. “We will continue to prosecute dangerous online predators like the defendant who victimize vulnerable minors.” Mr. Peace thanked the Federal Bureau of Investigation, New York Field Office (FBI) and the FBI’s Human Trafficking and Child Exploitation Task Force for their investigative work on the case.
Between approximately January 24, 2016, and October 12, 2016, Caroleo enticed a 14-year-old girl to produce sexually explicit images of herself, and to send these images to him using an Internet application called Kik. The account username for the application on Caroleo’s cell phone was “Nimfeater.” A review of Nimfeater’s Kik account revealed a series of messages in which Caroleo requested sexually explicit photos of Kik users who have been identified as minors, some as young as 12 years old.
This prosecution is part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The government’s case is being prosecuted by Assistant United States Attorneys Nicholas Axelrod and Erin E. Argo.
The Defendant:
BLAISE CAROLEO
Age: 57
Staten Island, NYE.D.N.Y. Docket No. 17-CR-177 (S-1) (ENV)
Associate of Gambino Organized Crime Family Sentenced to 10 Years in Prison for Arson in QueensRead the Press Release
Earlier today, in federal court in Brooklyn, Peter Tuccio, an associate of the Gambino organized crime family of La Cosa Nostra, was sentenced by United States District Judge LaShann DeArcy Hall to 10 years’ imprisonment for his involvement in setting a car on fire to extract extortion payments. The Court also ordered Tuccio to pay more than $75,000 in restitution. Tuccio pleaded guilty in January 2021 to using fire to commit one or more felonies.
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 sentence.
“Today, Tuccio pays a steep price for the dangerous actions he took to extort payments to the mob,” stated United States Attorney Peace. “No residents or businesses should have to operate under the threat of violence or intimidation from organized crime. Let Tuccio serve as an example that this behavior will not be tolerated.” Mr. Peace thanked the New York City Fire Department’s Bureau of Fire Investigation for their outstanding work on the case.
“The primary mission of the NYPD and our law enforcement partners is to arrest, prosecute, and send away with meaningful prison sentences those who instill fear in New Yorkers through their criminal actions,” stated NYPD Commissioner Sewell. “With today’s sentence, the result of our efforts is tangible. I thank our colleagues at the FBI and the Eastern District of New York for their dedication in helping us hold accountable anyone who commits violence in order to spread fear, especially when it’s in the form of organized crime.”
As alleged in court filings, in 2015, a businessman who had been extorted for years by a captain in the Gambino crime family (referred to in court filings as “Co-Conspirator 1”), began avoiding Co-Conspirator 1 in an effort to stop making his annual extortionate payment. On December 3, 2015, Tuccio and his co-conspirators observed the businessman leave a smoke shop in Howard Beach and drive away in his 2014 Mercedes Benz. They followed the businessman at a high rate of speed through the streets of Queens and confronted him outside a pizzeria, where Tuccio asked about Co-Conspirator 1 by name and complimented the businessman’s car. Tuccio and his co-conspirators schemed to set the businessman’s car on fire as a message to the businessman that he had to continue making payments to Co-Conspirator 1. Later that night, the businessman heard a loud noise and saw that his car was on fire outside of his residence. After the arson, the businessman made additional payments to Co-Conspirator 1.
The government’s case is being handled by the Office’s Organized Crime & Gangs Section. Assistant United States Attorneys Nadia E. Moore, Nicholas J. Moscow and Lindsey R. Oken are in charge of the prosecution.
The Defendant:
PETER TUCCIO
Age: 29
Howard Beach, New YorkE.D.N.Y. Docket No. 18-CR-610 (S-1) (LDH)
United Kingdom Citizens Indicted in Brooklyn Federal Court for Multi-Million Dollar Loan SchemeRead the Press Release
An indictment was filed yesterday in federal court in Brooklyn charging Stephen Burton and James Wellesley, both citizens of the United Kingdom, with wire fraud conspiracy, wire fraud and money laundering conspiracy in connection with a scheme perpetrated through their company, Bordeaux Cellars, the trade name for two private limited companies, Bordeaux Cellars, Limited and Bordeaux Cellars London Ltd., registered, respectively, in Hong Kong and London, England. Wellesley was arrested on February 4, 2022 in the United Kingdom and Burton remains at large.
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.
“Unlike the fine wine they purported to possess, the defendants’ repeated lies to investors did not age well. As alleged, these defendants duped investors by offering them an intoxicating investment opportunity collateralized by valuable bottles of fine wine that turned out to be too good to be true,” stated United States Attorney Peace. “This Office and our law enforcement partners will work to protect investors from deceptive schemes and ensure that loans that are financed with investor funds are not stolen by fraudsters.” Mr. Peace also thanked Internal Revenue Service Criminal Investigation for their work on the case.
“Burton and Wellesley, as alleged, lied to their victims to get them to invest in what ended up being a nearly $100 million scheme. Today’s indictment brings their criminal activity to light and reminds other like-minded criminals that illegal investment fraud schemes won’t be overlooked,” stated FBI Assistant Director-in-Charge Driscoll.
The indictment alleges that from at least June 2017 and continuing through February of 2019, the defendants posed as executives of a company called Bordeaux Cellars. The defendants solicited investors, including residents of the Eastern District of New York, at investor conferences held in the United States and overseas. The defendants claimed to investors that Bordeaux Cellars brokered loans between investors and high-net-worth wine collectors that would be fully collateralized by high-value collections of wine. The defendants promised that investors would receive regular interest payments from the borrowers, and that Bordeaux Cellars would keep custody of the wine pledged as collateral while the loans were outstanding. As alleged, these representations were false, the “high-net-worth wine collectors” did not actually exist and Bordeaux Cellars did not maintain custody of the wine purportedly securing the loans. Instead, the defendants used incoming loan proceeds to make fraudulent interest payments to investors and for their own personal expenses. Burton is a fugitive. Anyone with information related to his whereabouts is asked to contact the FBI by calling 1-800-CALL-FBI or by visiting tips.fbi.gov
The charges in the indictment are allegations, and the defendants are presumed innocent unless and until proven guilty. If convicted, the defendants face up to 20 years in prison.
The government’s case is being handled by the Office’s Business and Securities Fraud Section. Assistant United States Attorney Lauren Elbert is in charge of the prosecution.
The Defendants:
STEPHEN BURTON
Age: 57
United KingdomJAMES WELLESLEY
Age: 55
United KingdomE.D.N.Y. Docket No. 22-CR-79 (PKC)
Long Island Man Pleads Guilty to Mailing Threatening Letters to LGBTQ+ Affiliated IndividualsRead the Press Release
Earlier today, in federal court in Central Islip, Robert Fehring pleaded guilty before United States District Judge Joanna Seybert to mailing more than 20 letters threatening to assault, shoot, and bomb LGBTQ+ affiliated individuals, organizations and businesses. When sentenced, Fehring faces up to five years’ 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 Rodney K. Harrison, Commissioner, Suffolk County Police Department (SCPD), announced the guilty plea.
“In pleading guilty today, the defendant admits that he sent hate-filled communications that threatened mass shootings, bombings and other fatal attacks, to members of the LGBTQ+ community,” stated United States Attorney Peace. “This Office will use all of its available law enforcement tools to protect the safety and civil rights of the LGBTQ+ community and every other community. We will not tolerate hateful threats intended to invoke fear and division, and we will hold accountable those who make or act on such threats.”
Mr. Peace also expressed his gratitude to the Suffolk County District Attorney’s Office for their assistance in the investigation.
“Today’s guilty plea further highlights Fehring’s intentions, and underscores the FBI’s commitment to vigorously investigating civil rights violations. Anonymous threats against members of our community will eventually be uncovered, and those who are responsible for them will be held accountable,” stated FBI Assistant Director-in-Charge Driscoll.
“We have absolutely no tolerance for hate incidents of any kind here in Suffolk County and I hope that this guilty plea gives peace of mind to both the victims and the entire LGBTQ+ community,” stated SCPD Commissioner Harrison. “Our department remains laser focused on holding individuals who carry out acts of hate accountable and I thank all of our law enforcement partners who helped bring quick closure to this case.”
As set forth in the court filings and today’s proceeding, from at least 2013 to 2021, Fehring sent letters threatening violence to individuals associated with the LGBTQ+ community. In those letters, Fehring threatened to use firearms and explosives against the recipients. One such letter threatened that there would “be radio-cont[r]olled devices placed at numerous strategic places” at the 2021 New York City Pride March with “firepower” that would “make the 2016 Orlando Pulse Nightclub shooting look like a cakewalk,” referencing the 2016 attack in which 49 persons were killed and dozens wounded at Pulse, a gay nightclub in Orlando, Florida. Fehring also sent a threatening letter to the owner of a barbershop affiliated with the LGTBQ+ community in Brooklyn, New York, which stated, in part, “your shop is the perfect place for a bombing . . . or beating the scum that frequents your den of [expletive] into a bloody pool of steaming flesh.” Fehring mailed dozens of additional threatening letters to individuals, businesses, and elected officials associated with the LGBTQ+ community.
On November 18, 2021, the FBI’s Civil Rights Squad and the New York Joint Terrorism Task Force executed a search warrant at Fehring’s home in Bayport and recovered copies of letters containing threats, supplies used to mail threatening letters, 20 LGBTQ+ related Pride flags that appeared identical to flags stolen from flagpoles in Sayville in July 2021, and reconnaissance-style photographs from a June 2021 Pride event in East Meadow. Law enforcement officers also recovered electronic devices owned by Fehring that contained internet searches for Fehring’s victims and related LGBTQ+ affiliated individual, events, and businesses. Law enforcement officers also recovered from Fehring’s residence two loaded shotguns, hundreds of rounds of ammunition, two stun guns, and a stamped envelope addressed to an LGBTQ+ affiliated attorney containing the remains of a dead bird.
The government’s case is being handled by the Office’s National Security and Cybercrime Section, Civil Rights Section, and Long Island Criminal Division. Assistant United States Attorneys Francisco J. Navarro, Rachel A. Bennek, and Andrew P. Wenzel are in charge of the prosecution.
The Defendant:
ROBERT FEHRING
Age: 74
Bayport, New YorkE.D.N.Y. Docket No. 22-CR-059 (JS)
Queens Marine Corps Reservist and Long Island Nurse Indicted for COVID-19 Vaccination Card Fraud SchemeRead the Press Release
An indictment was unsealed today in federal court in Brooklyn charging Jia Liu, a member of the United States Marine Corps Reserve, and Steven Rodriguez, a nurse at a clinic in Hempstead, New York, with one count of conspiring to defraud the United States Department of Health and Human Services and one count of conspiring to commit forgery in connection with their scheme to distribute and sell false COVID-19 Vaccination Cards. Liu, a Marine Corps reservist, is additionally charged with one count of conspiring to defraud the United States Department of Defense for providing these cards to United States Marine Corps reservists. The defendants were arrested this morning and will make their initial appearance this afternoon before United States Magistrate Judge Sanket J. Bulsara.
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), announced the arrest and charges.
“As alleged, by deliberately distributing fraudulent COVID-19 vaccination cards to the unvaccinated, the defendants put military and other communities at risk of contracting a virus that has already claimed nearly one million lives in this country,” stated United States Attorney Peace. “This Office remains committed to rooting out and prosecuting those individuals who threaten our public health and safety for profit.”
“The COVID-19 vaccination card fraud scheme allegedly perpetrated by Liu and Rodriguez resulted in more than 300 stolen or false vaccination cards circulating throughout the community, and in the destruction of multiple doses of a vaccine intended to protect people from the most severe effects of the virus. Schemers who defraud the government in any way—and profit from pocketing the funds—will continue to be held accountable,” stated FBI Special Agent-in-Charge Driscoll.
The indictment alleges that from at least March 2021 to February 2022, the defendants conspired to steal and forge COVID-19 Vaccination Cards to falsely record persons as immunized with vaccines that protect against COVID-19, when in reality, they had not been immunized. In addition to selling stolen and false cards to unvaccinated persons, Liu and Rodriguez also conspired to enter false COVID-19 vaccination records into New York state databases, allowing unvaccinated individuals to receive the Excelsior Pass, which displays a user’s vaccination status in a digital app.
According to court documents, Liu purchased blank COVID-19 Vaccination Cards from Rodriguez, and then forged and distributed them to buyers and other co-conspirators for a profit. Liu also directed buyers to meet Rodriguez in person at the healthcare clinic to purchase fraudulent cards. Rodriguez would meet the buyer, but instead of administering the vaccine he destroyed a vial of vaccine intended to be used to vaccinate a patient. He then provided a forged COVID-19 Vaccination Card to the buyer that he completed to make it falsely appear that the buyer had received a dose of vaccine. He further made entries in the Immunization Databases falsely indicating that the buyer had been vaccinated.
After the U.S. Department of Defense imposed a requirement that all active and reserve military service members be vaccinated against COVID-19, from August 2021 to January 2022, Liu created and distributed false COVID-19 Vaccination Cards to United States Marine Corps reservists to help them evade vaccination requirements.
The defendants promoted their scheme through messages on encrypted messaging applications and on social media. They referred to COVID-19 Vaccination Cards using code names, such as “gift cards,” “Cardi Bs,” “Christmas cards” and “Pokemon cards.” The defendants distributed at least 300 stolen or false COVID-19 Vaccination Cards and created more than 70 false entries in the Immunization Databases.
All COVID-19 vaccination providers are required to give individuals who receive a COVID-19 vaccine a COVID-19 Vaccination Card. These COVID-19 Vaccination Cards list the name and date of birth of the patient, name of the manufacturer of the COVID-19 vaccine that the patient received, the date the patient receives it, the lot number of the vaccine dose, and the location where each dose is administered.
Proof of vaccination, as reflected in a COVID-19 Vaccination Card or Excelsior Pass, is required to travel to certain locations and attend certain events where large numbers of people congregate, such as sporting events, concerts, restaurants, and bars. In addition, some employers and government agencies require employees to have received a COVID-19 vaccination. Proof of vaccination requirements are intended to limit the spread of COVID-19 and maximize the safety of the community. In April 2021, the State of New York established the Excelsior Pass. Using patient data recorded in Immunization Databases, an Excelsior Pass stores and displays a user’s vaccination status in a digital app. The pass is intended to be shown at participating businesses and venues as proof of vaccination.
The charges in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty. If convicted, the defendants face up to 10 years in prison.
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 Defendants:
JIA LIU
Age: 26
Queens, New YorkSTEVEN RODRIGUEZ
Age: 27
Long Beach, New YorkE.D.N.Y. Docket No. 22-CR-70 (DG)
11 Members and Associates of the Brooklyn-Based Woo Gang Charged with Multi-Million Dollar COVID-19 Unemployment Insurance FraudRead the Press Release
A criminal complaint was unsealed today in federal court in Brooklyn charging Romean Brown, Tyrek Clarke, Kennith Desir, Stephan Dorminvil, Kai Heyward, Keith James, Oneal Marks, Jahriah Olivierre, Christopher Jean Pierre, Roleeke Smith and Christopher Topey with conspiracy to commit access device fraud and aggravated identity theft in connection with a scheme to obtain millions of dollars in unemployment insurance benefits funded, in whole or in part, by COVID-19 pandemic assistance programs. Eight defendants were arrested this morning in New York City and will make their initial appearances this afternoon before United States Magistrate Judge Sanket J. Bulsara. Heyward was arrested in Delaware and will make his initial appearance this afternoon in federal court in Wilmington. Brown was arrested in California and will make his initial appearance this afternoon in federal court in Los Angeles. Olivierre remains at large.
Breon Peace, United States Attorney for the Eastern District of New York, Jonathan Mellone, Special Agent-in-Charge, U.S. Department of Labor, Office of Inspector General, New York Regional Office (DOL-OIG), and Keechant L. Sewell, Commissioner, New York City Police Department (NYPD), announced the arrests and charges.
“As alleged, the defendants conspired to steal millions of dollars in pandemic-related unemployment assistance and then brazenly flaunted the proceeds of their crimes on social media,” stated United States Attorney Peace. “These government programs are designed to provide financial assistance to those who are most in need during an unprecedented pandemic. This Office and its law enforcement partners will vigorously prosecute gang members and anyone else who exploits the pandemic and steals from taxpayer-funded programs."
Mr. Peace also thanked the New York State Department of Labor for its assistance during the investigation.
“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, like the New York State Department of Labor, 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.
“COVID benefit payments were meant to keep Americans who lost jobs, income, and financial stability from drowning in debt. These funds were never intended to be a multi-million dollar slush fund to pay for rented Beverly Hills mansions, high-end restaurants and expensive foreign cars for members of gangs and crews connected to gun violence in New York City. I commend the work of the NYPD Intelligence Bureau’s Criminal Investigation Section and our partners in the Department of Labor Office of the Inspector General as well as the prosecutors for the United States Attorney for the Eastern District of New York for their work on this investigation,” stated NYPD Commissioner Sewell.
As alleged in the complaint, the defendants are all members or associates of the Brooklyn-based Woo gang. Between March 2020 and October 2021, the defendants used the personally identifiable information of more than 800 victims to submit nearly 1,000 claims to the New York State Department of Labor for unemployment insurance benefits funded, in whole or in part, by COVID-19 pandemic assistance programs. The defendants ultimately obtained approximately $4.3 million in unemployment insurance after having filed for approximately $20 million in benefits. During the period of the charged conspiracy, the defendants posted photos of themselves on social media flashing gang signs, standing in front of luxury vehicles, and holding stacks of United States currency. Several of the defendants appeared in a music video entitled “Trappin,” which was posted to YouTube on May 8, 2021. The lyrics of the song include, “Unemployment got us workin’ a lot,” a reference to the defendants’ fraudulent scheme.
In response to the COVID-19 pandemic, Congress established programs and provided additional funding for unemployment insurance benefits for unemployed persons. These programs included the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), which was signed into law on March 27, 2020, and created programs for pandemic unemployment assistance and federal pandemic unemployment compensation.
The charges in the complaint are allegations, and the defendants are presumed innocent unless and until proven guilty.
The government’s case is being prosecuted by the Office’s Organized Crime and Gangs Section and Public Integrity Section. Assistant United States Attorneys Michael W. Gibaldi and Robert Polemeni are in charge of the prosecution.
The Defendants:
ROMEAN BROWN
Age: 23
Los Angeles, CaliforniaTYREK CLARKE
Age: 21
Miami, FloridaKENNITH DESIR
Age: 20
Brooklyn, New YorkSTEPhAN DORMINVIL
Age: 21
Brooklyn, New YorkKAI HEYWARD
Age: 22
Brooklyn, New YorkKEITH JAMES
Age: 20
Brooklyn, New YorkONEAL MARKS
Age: 20
Brooklyn, New YorkJAHRIAH OLIVIERRE
Age: 22
Brooklyn, New YorkCHRISTOPHER JEAN PIERRE
Age: 21
Brooklyn, New YorkROLEEKE SMITH
Age: 20
Brooklyn, New YorkCHRISTOPHER TOPEY
Age: 21
Brooklyn, New YorkE.D.N.Y. Docket No. 22-MJ-169
Gambino Crime Family Captain Sentenced to 37 Months in Prison and Ordered to Pay $1 Million in Restitution for Racketeering ConspiracyRead the Press Release
Earlier today, at the federal courthouse in Brooklyn, Andrew Campos, a captain in the Gambino organized crime family of La Cosa Nostra, was sentenced by United States District Judge Ann M. Donnelly to 37 months’ imprisonment for racketeering conspiracy. The Court also ordered Campos to pay $1 million in restitution and a $15,000 fine. Campos pleaded guilty to the charge in January 2021, admitting his participation in various predicate acts of wire fraud and money laundering.
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); Thomas Fattorusso, Special Agent-in-Charge, Internal Revenue Service Criminal Investigation (IRS-CI); and Keechant Sewell, Commissioner, New York City Police Department (NYPD), announced the sentence.
“As a captain in the Gambino crime family, Campos has engaged in multiple fraud and money laundering schemes and maintained the corrosive influence of organized crime in the construction industry,” stated United States Attorney Peace. “This Office, together with its law enforcement partners, will continue to pursue all investigative avenues to deter, interrupt and hold accountable members of organized crime who seek to line their pockets at the expense of businesses and taxpayers.” Mr. Peace expressed his appreciation to the Queens County District Attorney’s Office, the United States Probation Departments for the Eastern and Southern Districts of New York, the Waterfront Commission of New York Harbor and the United States Department of Labor for their assistance during the investigation.
“Andrew Campos led a scheme that lined his pockets and cheated taxpayers. He failed to pay more than $1 million in payroll taxes and laundered money to build his personal residence,” stated IRS-CI Special Agent-in-Charge Fattorusso. “Criminals, take note. Trying to cheat the system is not the way to do business.”
Campos and his co-conspirators carried out multiple fraudulent schemes to earn millions of dollars in criminal proceeds, in part through their operation of a carpentry company, CWC Contracting Corp. (“CWC”). Campos helped orchestrate a massive scheme to defraud the IRS by failing to pay approximately $1.3 million in payroll taxes owed to the federal government by paying CWC employees millions of dollars in cash without making the required payroll tax withholdings and payments. Campos and others also laundered money through a scheme by which checks were made out to others and cashed, purportedly for work performed in connection with CWC construction projects, but where, in fact, no services were performed, and the proceeds were used to construct Campos’s residence. Campos and his co-conspirators also fraudulently procured cards from the United States Department of Labor indicating completion of certain Occupational Safety and Health Administration training courses when, in fact, the courses were never completed. Further, as found by the Court at sentencing, between approximately June 2018 and June 2019, CWC paid hundreds of thousands of dollars in bribes and kickbacks to employees of a real estate development company. CWC paid the bribes in the form of hundreds of thousands of dollars’ worth of free labor and materials used for renovations on a co-defendant’s residence.
The government’s case is being handled by the Office’s Organized Crime & Gangs Section. Assistant United States Attorney Kayla C. Bensing is in charge of the prosecution, assisted by Eastern District of New York Special Agent Erik Nesbitt. Assistant United States Attorney Claire S. Kedeshian of the Office’s Asset Recovery Section is handling forfeiture matters.
The Defendants:
ANDREW CAMPOS
Age: 51
Scarsdale, New YorkE.D.N.Y. Docket No. 19-CR-575 (AMD)
Five Members of a Family-Run Sex Trafficking Organization Receive Lengthy Prison Sentences in Brooklyn Federal CourtRead the Press Release
Five members of a family-run sex trafficking organization were sentenced this week to prison terms of nearly 40 years in prison by United States District Judge Allyne R. Ross in federal court in Brooklyn. Jose Miguel Melendez-Rojas was sentenced to 39 years and six months in prison; Jose Osvaldo Melendez-Rojas and Rosalio Melendez-Rojas were each sentenced to 39 years and four months in prison; Francisco Melendez-Perez and Abel Romero-Melendez were sentenced to 25 years and 20 years in prison respectively. The defendants were also ordered to pay restitution to their victims. The defendants were convicted by a federal jury in March 2020 of sex trafficking, sex trafficking conspiracy, sex trafficking of minors, interstate prostitution, alien smuggling and money laundering conspiracy. A sixth co-defendant, Fabian Reyes-Rojas, pleaded guilty to sex trafficking conspiracy and sex trafficking in December 2019 and is awaiting sentencing.
“Through false promises of a better life, the defendants ensnared young, vulnerable victims in a sordid world of sex-trafficking and used violence and cruel threats to force them into prostitution,” stated United States Attorney Peace. “Today’s lengthy sentence reflects the immeasurable harm the defendants’ brutality and exploitation inflicted on these young women and girls, and the commitment of this Office and its law enforcement partners to combating human trafficking in all its forms,” stated United States Attorney Peace. “I applaud the courage shown by the victims who testified and hope that the sentences the Court meted out will help them find closure on their path to healing. I commend the diligent and compassionate work of Eastern District of New York prosecutors and HSI agents and thank them for bringing the defendants to justice.”
“The traffickers in this case used deception and coercion to sell dreams of a better life in the United States to young and impressionable women, who arrived only to be forced into a life of torment, misery, sexual abuse and prostitution at the hands of their captors,” stated HSI Acting Special Agent-in-Charge Patel. “The conviction and sentencing of these traffickers represent the culmination of an imperative investigation and could not have been possible without the cooperation and testimony of these brave victims, whose boundless courage led to justice for the heinous and reprehensible acts committed against them. HSI New York’s Human Trafficking Task Force combines federal, state, local and international resources to combat human trafficking by working hand-in-hand with our law enforcement partners to identify and dismantle criminal networks engaged in human trafficking and provide protection, assistance, and safe haven to victims.”
Between 2006 and July 2017, the defendants transported young and vulnerable Mexican women and girls, some of whom were minors, to the United States and forced them to work in prostitution. The defendants used false promises of love, marriage, and a better life to lure the women and girls into romantic and sexual relationships and isolated their victims from their families by bringing them to live with them at the defendants’ homes in Tenancingo, Mexico. The defendants then used physical and sexual violence, threats, and fraud to coerce their victims to work in prostitution in New York City, Long Island, New Jersey, Connecticut and Delaware. The defendants took the proceeds generated from the victims’ prostitution and laundered them to conceal their source.
Six victim-witnesses testified at trial regarding the physical and sexual abuse they endured at the hands of the defendants. One victim identified as “Diana” testified that she was smuggled into the United States as a minor and forced to work as a prostitute. When she tried to escape, Jose Miguel Melendez-Rojas beat and raped her in front of other members of the household, including Rosalio Melendez-Rojas and Abel Romero-Melendez. Another victim identified as “Delia” testified that she was forced into prostitution by Francisco Melendez-Perez and his uncle Rosalio Melendez-Rojas when she was 14 years old. When she refused to work, she was beaten. Victims “Fabiola” and “Maria Rosalba” also testified that they were forced to work as prostitutes through threats, physical abuse and forced abortions by Rosalio Melendez-Rojas and Jose Osvaldo Melendez-Rojas. Victim “Daisy” testified that she was forced into prostitution by Fabian Reyes-Rojas. Victim “Veronica” testified at trial that Jose Miguel Melendez-Rojas threatened her and her family, telling her that he would “chop [her] mother up into little pieces” if she did not work in prostitution for his benefit.
The investigation, prosecution, bilateral enforcement action and extradition of the defendants apprehended in Mexico were coordinated through the U.S.-Mexico Bilateral Human Trafficking Enforcement Initiative. Since 2009, the Departments of Justice and Homeland Security have collaborated with Mexican law enforcement counterparts in the bilateral initiative to more effectively dismantle human trafficking networks operating across the U.S.-Mexico border, bring human traffickers to justice, restore the rights and dignity of human trafficking victims and reunite victims with their children. These efforts have resulted in successful prosecutions in both Mexico and the United States, including U.S. federal prosecutions of more than 170 defendants in multiple cases in Georgia, New York, Florida and Texas, in addition to numerous federal and state prosecutions of associated sex traffickers in Mexico. The convictions in this case are the latest development in the Eastern District of New York’s comprehensive anti-trafficking program, which has to date indicted more than 100 defendants for sex trafficking; assisted more than 180 victims, including over 40 minors; reunited 19 victims’ children with their mothers; and secured restitution orders of over $4 million on behalf of trafficking victims.
The investigation and prosecution of the defendants was led by the U.S. Attorney’s Office for the Eastern District of New York and HSI New York’s Trafficking in Persons Unit, with assistance from HSI Mexico City Attaché Office, the Department of Justice’s Office of International Affairs, the State Department, Interpol and the New York City Police Department. The government of Mexico, including Mexico’s Procuraduría General de la República and Policía Federal, as well as the National Center for Attention to Cybercrimes against Minors (CENADEM), also played a prominent role in advancing the bilateral anti-trafficking enforcement efforts in this case. Non-governmental victim service providers and advocates also dedicated efforts to restore and improve the lives of survivors of trafficking and their families.
The government’s case is being handled by the Office’s Civil Rights Section. Assistant United States Attorneys Tanya Hajjar, Erin Argo and Gillian Kassner are in charge of the prosecution.
If you believe that you or someone you know may be a victim of human trafficking, please contact the National Human Trafficking Resource Center Hotline at 1-888-373-7888, or Text 233733.
The Defendants:
JOSE MIGUEL MELENDEZ-ROJAS
Age: 45
MexicoFRANCISCO MELENDEZ-PEREZ (also known as “Paco” and “El Mojarra”)
Age: 27
Queens, New YorkABEL ROMERO-MELENDEZ (also known as “La Borrega” and “Borrego”)
Age: 35
Queens, New YorkJOSE OSVALDO MELENDEZ-ROJAS
Age: 46
MexicoROSALIO MELENDEZ-ROJAS (also known as “Leonel, “Wacho” and “El Guacho”)
Age: 40
MexicoCo-Defendant To Be Sentenced:
FABIAN REYES-ROJAS
Age: 42
MexicoE.D.N.Y. Docket No. 17-CR-434 (ARR)
Serial Bank Robber Sentenced to 10 Years’ Imprisonment in Brooklyn Federal CourtRead the Press Release
Earlier today, in federal court in Brooklyn, Gerod Woodberry was sentenced by United States District Judge Dora L. Irizarry to 10 years’ imprisonment for a series of bank robberies in December 2019 and January 2020 in Manhattan and Brooklyn. Woodberry pleaded guilty 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 has been held accountable in federal court for a 16-day crime spree in which he robbed or attempted to rob six banks,” stated United States Attorney Peace. “I commend the members of law enforcement who apprehended the defendant and ended his string of robberies.”
Woodberry robbed or attempted to rob six New York City banks over a 16 day-period. After committing or attempting to commit robberies on December 30, 2019, January 3, 2020, January 6, 2020, and January 8, 2020, in Manhattan, Woodberry was arrested and charged in state court in New York County with the December 30, 2019 bank robbery. On January 10, 2020, Woodberry was released pending trial on the state charges. Several hours after Woodberry’s release from state custody, he entered a Chase Bank branch located at 20 Flatbush Avenue in Brooklyn, presented a demand note to the teller that read, “THIS IS A ROBBERY BIG BILLS ONLY NO DYE PACKS.” Woodberry received $1,000 in cash and fled the bank. On January 14, 2020, Woodberry attempted a sixth robbery at a Citibank branch in Manhattan, where he received no money and fled the bank. In total, Woodberry stole $3,100 from the three banks that he robbed.
Assistant United States Attorneys Jack Dennehy, Devon Lash and Anna Karamigios are in charge of the prosecution.
The Defendant:
GEROD WOODBERRY
Age: 44
Brooklyn, New YorkE.D.N.Y. Docket No. 20-CR-31 (DLI)
Former Mexican Federal Police Commander Sentenced to 10 Years’ Imprisonment for Drug Trafficking ConspiracyRead the Press Release
Earlier today in federal court in Brooklyn, Ivan Reyes Arzate, a former Mexican Federal Police Officer and Commander of the Mexican Federal Police’s Sensitive Investigative Unit (“SIU”), was sentenced by United States District Judge Brian M. Cogan to 10 years’ imprisonment for participating in a drug trafficking conspiracy. Reyes Arzate accepted a bribe in exchange for agreeing to assist El Seguimiento 39, a Mexico-based cartel, ship cocaine from Mexico to the United States. The El Seguimiento 39 cartel is associated with the Sinaloa Cartel, the Beltran Leyva Organization and other Mexico-based cartels. Reyes Arzate pleaded guilty to the charge in October 2021.
Breon Peace, United States Attorney for the Eastern District of New York; Timothy Foley, Special Agent-in-Charge, Drug Enforcement Administration, New York Division (DEA); Ricky J. Patel, Special Agent-in-Charge, Homeland Security Investigations, New York (HSI); Keechant L. Sewell, Commissioner, New York City Police Department (NYPD); and Kevin P. Bruen, Superintendent, New York State Police (NYSP), announced the sentence.
“In betraying his oath and partners in law enforcement in exchange for cash bribes, Arzate became a willing participant in drug trafficking and in spreading massive and dangerous amounts of cocaine in our communities,” stated United States Attorney Peace. “Corrupt police officers who use their government positions to further the interests of the drug cartels and harm our communities will be brought to justice and punished for their crimes. Their badges will not shield them from accountability.” Mr. Peace expressed his appreciation to the United States Attorney’s Offices for the Southern District of California and the Northern District of Illinois for their assistance on the case.
“Reyes Arzate’s crimes were an affront to law enforcement, especially those working to suppress illegal drug’s from hitting American streets. Today’s sentencing demonstrates DEA and our law enforcement partners’ commitment to the Rule of Law. I commend the New York Strike Force and the U.S. Attorney’s Office Eastern District of New York for their diligent work,” stated DEA Special Agent-in-Charge Foley.
“Azarte was entrusted with protecting the people of Mexico as a public servant, but instead served himself by lining his pockets with cartel cash,” stated HSI Acting Special Agent- in-Charge Patel. “Azarte betrayed his country, his community, and his brothers and sisters in law enforcement when he took bribes in exchange for valuable law enforcement information and conspired with narcotics traffickers to import hundreds of kilograms of cocaine into the United States. Today’s sentence sends a clear message that anyone who violates their oath of office and decides to partner with drug cartels will face severe consequences and will be held accountable for their reprehensible violation of the public’s trust.”
According to court filings, SIU officers in Mexico routinely work with U.S. law enforcement to combat narcotics trafficking, money laundering and other criminal activities. From 2003 to 2016, Reyes Arzate was a Mexican Federal Police Officer assigned to SIU. In 2008, he was appointed SIU Commander, making him its highest-ranking officer and principal point of contact for information sharing between U.S. and Mexican law enforcement personnel assigned to the SIU.
In approximately November 2016, while participating in a joint investigation of El Seguimiento 39 with U.S. law enforcement authorities, Reyes Arzate met with the leadership of El Seguimiento 39, shared with them information about the U.S. law enforcement investigation, and accepted a $290,000 bribe in exchange for his agreement to assist the cartel. The amount of cocaine involved in the conspiracy attributable to the defendant as a result of his conduct, and the conduct of others, was more than 450 kilograms.
This investigation was led by the New York Strike Force, a crime-fighting unit comprising federal, state and local law enforcement agencies supported by the Organized Crime DEA Task Force and the New York/New Jersey High Intensity Drug Trafficking Area. The Strike Force is based at the DEA’s New York Division and includes agents and officers of the DEA, NYPD, NYSP, HSI, U.S. Internal Revenue Service Criminal Investigation Division, Bureau of Alcohol, Tobacco, Firearms and Explosives, U.S. Customs and Border Protection, U.S. Secret Service, United States Marshals Service, New York National Guard, Clarkstown Police Department, U.S. Coast Guard, Port Washington Police Department and New York State Department of Corrections and Community Supervision.
The government’s case is being handled by the Office’s International Narcotics and Money Laundering Section and Public Integrity Section. Assistant United States Attorneys Ryan Harris and Philip Pilmar are in charge of the prosecution.
The Defendant:
IVAN REYES ARZATE
Age: 49
Mexico City, MexicoE.D.N.Y. Docket No. 20-CR-30 (BMC)
Long Island MS-13 Gang Leader Sentenced to 30 Years’ Imprisonment for Racketeering Offenses Including 2016 Murder and Attempted MurderRead the Press Release
Earlier today, in federal court in Central Islip, Carlos Argueta, also known as “Violento,” “Desorden” and “Dylan,” a former leader of the Freeport Locos Salvatruchas (Freeport) clique of La Mara Salvatrucha, also known as the MS-13, a transnational criminal organization, was sentenced by United States Circuit Judge Joseph F. Bianco to 30 years’ imprisonment for racketeering and firearms charges in connection with his participation in the June 3, 2016 murder of Jose Pena, an MS-13 member who was suspected of violating the gang’s rules, and the January 15, 2016 attempted murder of a suspected rival gang member outside of the Brentwood public library. Argueta pleaded guilty to the charges in July 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), and Rodney K. Harrison, Commissioner, Suffolk County Police Department (SCPD), announced the sentence.
“Argueta, a violent leader in the MS-13, shot and wounded a so-called ‘rival’ in broad daylight outside of a public library, and then participated in the pre-planned brutal slashing and stabbing death of one of his alleged MS-13 accomplices in that shooting. Today’s lengthy sentence ensures that Argueta will no longer inflict senseless violence and bloodshed on our streets,” stated United States Attorney Peace. “I commend our prosecutors and the Long Island Gang Task Force for their steadfast commitment in bringing MS-13 members to justice and eliminating their violence from our communities.”
“Like so many members of MS-13, Carlos Argueta is without any moral compass and has shown zero regard for human life,” stated SCPD Commissioner Harrison. “It is up to law enforcement to send a message to this transnational gang that their violent and homicidal actions have no place in Suffolk County. I would like to thank Eastern District of New York and the Long Island Gang Task Force for their relentless pursuit to ensure individuals like Argueta are held accountable for their crimes.”
On the afternoon of January 15, 2016, Argueta, Pena and several other MS-13 members confronted three suspected rival gang members outside of a public library in Brentwood. Argueta removed a .45 caliber semi-automatic handgun from his waistband and shot one of the men, identified as John Doe in the superseding indictment, in the torso. Argueta and the other MS-13 members then fled. The wounded victim received medical treatment and survived.
The Suffolk County police subsequently arrested Argueta, Pena and a third MS-13 member in connection with the attempted murder of John Doe, and they were released on bail. Argueta told other members of the Freeport clique that he suspected that Pena, a member of the Normandie clique of the MS-13, had cooperated with the SCPD. Additionally, members of the MS-13 suspected that Pena was homosexual, which is unacceptable under the rules of the MS-13.
After consulting with MS-13 leaders in El Salvador, Argueta and other MS-13 members agreed to kill Pena, and Argueta assigned tasks to other MS-13 gang members, including procuring weapons and a vehicle to be used in the murder. On June 3, 2016, Argueta and other MS-13 members lured Pena into a car and drove to a secluded area in Brentwood. After walking into the woods, the group attacked Pena, taking turns stabbing and slashing him with knives, and killing him. Pena’s body was found four months later.
Today’s sentencing 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, and has convicted 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 John J. Durham, Paul G. Scotti, Justina L. Geraci and Megan E. Farrell are in charge of the prosecution.
The Defendant:
CARLOS ARGUETA (also known as “Violento,” “Desorden” and “Dylan”)
Age: 22
Brentwood, New YorkE.D.N.Y. Docket No. 16-CR-510 (S-2) (JFB)
Long Island Man Pleads Guilty to Heroin and Fentanyl TraffickingRead the Press Release
Earlier today, at the federal courthouse in Central Islip, Donta Riddick pleaded guilty to possession of heroin and fentanyl with intent to distribute on September 15, 2020. Riddick also admitted to the distribution of heroin and fentanyl on September 13, 2020 that caused the death of a 21-year old resident of Massapequa, New York. As part of his guilty plea, Riddick agreed to a sentence of 198 months’ imprisonment, to be followed by five years’ supervised release, subject to the Court’s approval. Today’s proceeding was held before United States District Judge Gary R. Brown.
Breon Peace, United States Attorney for the Eastern District of New York, Timothy Foley, Acting Special Agent-in-Charge, Drug Enforcement Administration, New York Division (DEA), and Patrick J. Ryder, Commissioner, Nassau County Police Department (NCPD), announced the guilty plea.
“Today, the defendant admitted to trafficking heroin laced with fentanyl that caused the overdose death of a young woman on Long Island,” stated United States Attorney Peace. “The opioid epidemic and the tragic overdose deaths of so many have had a devastating impact on our communities. This Office, together with our federal and local partners, will continue to work tirelessly to prosecute and hold accountable those who contribute to this serious problem.”
“The facts of the case clearly demonstrate fentanyl’s lethal nature. Today’s guilty plea culminates one of many DEA investigations targeting drug trafficking rings whose illegal actions contribute to the rising drug-related overdose rates. I commend the investigators and prosecutors involved in this case,” stated DEA Acting Special Agent-in-Charge Foley.
“Defendant Donta Riddick did intentionally sell illegal drugs to a young woman who ultimately passed from an overdose of those drugs which were laced with deadly fentanyl. The multi-agency investigation led to the arrest of the defendant which removes a dangerous drug dealer from our communities. I would like to thank and congratulate all of the investigators and those respective agencies for a job well done,” stated NCPD Commissioner Ryder.
According to court filings and statements made by the defendant at the guilty plea proceeding, on the night of September 13, 2020, Riddick sold fentanyl-laced heroin to the victim, who suffered a fatal overdose at a motel in Massapequa the following morning. A review of the victim’s cell phone by law enforcement revealed text messages she exchanged with Riddick in which she appeared to be ordering heroin from the defendant. On September 15, 2020, during the subsequent investigation by the DEA and NCPD, Riddick was arrested in possession of street-level quantities of the same fentanyl-laced heroin that had caused the death of the victim the day before.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorneys Charles N. Rose and Samantha Alessi are in charge of the prosecution.
The Defendant:
DONTA RIDDICK
Age: 35
West Babylon, New YorkE.D.N.Y. Docket No. 20-CR-517 (S-1) (GRB)
New York Man Pleads Guilty in Multi-Million Dollar Fraudulent Prize Notice SchemeRead the Press Release
A fifth defendant pleaded guilty today in the Eastern District of New York to participating in a fraudulent, multi-million dollar mass-mailing scheme that tricked consumers into paying fees for falsely promised cash prizes.
According to court documents, from November 2013 through November 2018, Carmine Maietta, 75, of Westbury, New York, engaged in a direct-mail scheme that sent fraudulent prize notification mailings to thousands of consumers. The mailings induced consumers to pay a fee, purportedly in return for a large cash prize. None of the consumers who sent a fee ever received such a prize. Maietta pleaded guilty to conspiracy to commit mail fraud.
“Mass mailing fraud schemes often trick elderly victims into sending money based on false promises of large cash prizes,” said Acting Assistant Attorney General Brian M. Boynton of the Justice Department’s Civil Division. “The Department of Justice is committed to pursuing and prosecuting the perpetrators of these schemes.”
“With today’s guilty plea, Maietta admits to deceiving elderly and other vulnerable victims into believing they had won cash prizes when, in reality, he was simply pocketing their hard-earned funds,” said U.S. Attorney Breon Peace for the Eastern District of New York. “This office is committed to protecting the vulnerable from the financial harm caused by fraudulent mail solicitation schemes.”
“Sweepstakes and other frauds are extremely damaging to those who fall victim to a scammers’ pitch of trickery and lies,” said Inspector in Charge Daniel B. Brubaker of the U.S. Postal Inspection Service. “These fraudulent schemes by design are nothing more than lies written on paper. Postal Inspectors will always vigorously pursue individuals who prey on the public, bringing them to justice for their criminal activity.”
Four other defendants previously pleaded guilty to conspiracy to commit mail fraud for participating in the scheme. Charles Kafeiti, 58, of Scottsdale, Arizona, pleaded guilty on Dec. 23, 2020. Steven Diaz, 53, of Mount Sinai, New York, pleaded guilty on Feb. 8, 2021. Anthony Kafeiti, 61, of Port Jefferson, New York, pleaded guilty on July 28, 2021. Drew Wilson, 63, of British Columbia, Canada, pleaded guilty on Aug. 24, 2021. The defendants were part of a multi-million dollar mail fraud scheme in which they worked together to coordinate the mailings, open and process victims’ responses to the fraudulent solicitations, manage lists of recipients and respondents, and process victim payments.
Maietta will be sentenced at a later date. Each of the five defendants faces a maximum penalty of 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The U.S. Postal Inspection Service investigated the case.
Trial Attorneys Timothy Finley and Daniel Zytnick of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorney Charles P. Kelly of the U.S. Attorney’s Office for the Eastern District of New York are prosecuting the case.
The department’s extensive and broad-based efforts to combat elder fraud seeks to halt the widespread losses seniors suffer from fraud schemes. The best method for prevention, however, is by sharing information about the various types of elder fraud schemes with relatives, friends, neighbors and other seniors who can use that information to protect themselves.
If you or someone you know is age 60 or older and has been a victim of financial fraud, help is available at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311). This Department of Justice hotline, managed by the Office for Victims of Crime, is staffed by experienced professionals who provide personalized support to callers by assessing the needs of the victim and identifying relevant next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies, and provide resources and referrals, on a case-by-case basis. Reporting is the first step. Reporting can help authorities identify those who commit fraud, and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses. The hotline is staffed seven days a week from 6:00 a.m. to 11:00 p.m. ET. English, Spanish and other languages are available.
Additional information about the Consumer Protection Branch and its enforcement efforts may be found at www.justice.gov/civil/consumer-protection-branch. Information about the Department of Justice’s Elder Fraud Initiative is available at www.justice.gov/elderjustice.
Long Island Man Pleads Guilty in Multi-Million Dollar Fraudulent Prize Notice SchemeRead the Press Release
CENTRAL ISLIP, NY – Earlier today, in federal court in Central Islip, Carmine Maietta pleaded guilty to conspiracy to commit mail fraud in connection with a fraudulent mass-mailing scheme that tricked consumers into paying fees for falsely promised cash prizes.
Breon Peace, United States Attorney for the Eastern District of New York, Brian M. Boynton, Acting Assistant Attorney of the Justice Department’s Civil Division, and Daniel B. Brubaker, Inspector-in-Charge, United States Postal Inspection Service (USPIS), announced the guilty pleas.
“With today’s guilty plea, Maietta admits to deceiving elderly and other vulnerable victims into believing they had won cash prizes when, in reality, he was simply pocketing their hard-earned funds,” stated United States Attorney Peace. “This Office is committed to protecting the vulnerable from the financial harm caused by fraudulent mail solicitation schemes.”
“Mass mailing fraud schemes often trick elderly victims into sending money based on false promises of large cash prizes,” stated Acting Assistant Attorney General Boynton. “The Department of Justice is committed to pursuing and prosecuting the perpetrators of these schemes.”
“Sweepstakes and other frauds are extremely damaging to those who fall victim to a scammers’ pitch of trickery and lies. These fraudulent schemes by design are nothing more than lies written on paper. Postal Inspectors will always vigorously pursue individuals who prey on the public, bringing them to justice for their criminal activity,” stated USPIS Inspector-in-Charge Brubaker.
According to court documents, from November 2013 through November 2018, Maietta engaged in a direct-mail scheme that sent fraudulent prize notification mailings to thousands of consumers. The mailings induced consumers to pay a fee, purportedly in return for a large cash prize. None of the consumers who sent a fee ever received such a prize.
Four other defendants previously pleaded guilty to conspiracy to commit mail fraud for participating in the scheme. Charles Kafeiti pleaded guilty on December 23, 2020; Steven Diaz pleaded guilty on February 8, 2021; Anthony Kafeiti pleaded guilty on July 28, 2021; and Drew Wilson pleaded guilty on August 24, 2021.
When sentenced, the five defendants each face a maximum penalty of 20 years in prison.
Assistant United States Attorney Charles P. Kelly of the Eastern District of New York prosecuted the case with Trial Attorneys Timothy Finley and Daniel Zytnick of the Civil Division’s Consumer Protection Branch. The case was investigated by the United States Postal Inspection Service.
The Department of Justice has engaged in extensive efforts to combat elder fraud to halt the widespread financial losses senior citizens suffer from fraud schemes. If you or someone you know is age 60 or older and has been a victim of financial fraud, help is available at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311). This hotline, which is managed by the Office for Victims of Crime at the Department of Justice, is staffed by experienced professionals who provide personalized support to victims. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies, and provide resources and referrals, on a case-by-case basis. Reporting is the first step. Reporting can help authorities identify those who commit fraud and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses. The hotline is staffed seven days a week from 6:00 a.m. to 11:00 p.m. Eastern time. English, Spanish and other languages are available.
Additional information about the Consumer Protection Branch and its enforcement efforts may be found at www.justice.gov/civil/consumer-protection-branch. Information about the Department of Justice’s Elder Fraud Initiative is available at www.justice.gov/elderjustice.
The Defendant:
CARMINE MAIETTA
Age: 74
Westbury, New YorkE.D.N.Y. Docket No.: 21-CR-639 (JMA)
The Defendants Who Previously Pleaded Guilty:
STEVEN DIAZ
Age: 53
Mount Sinai, New YorkE.D.N.Y. Docket No.: 21-CR-35 (JMA)
ANTHONY KAFEITI
Age: 61
Port Jefferson, New YorkE.D.N.Y. Docket No.: 21-CR-253 (JMA)
CHARLES KAFEITI
Age: 58
Scottsdale, ArizonaE.D.N.Y. Docket No.: 20-CR-578 (JMA)
DREW WILSON
Age: 63
British Columbia, CanadaE.D.N.Y. Docket No.: 21-CR-373 (JMA)
U.S. Citizen Charged with Conspiring to Provide Electronic Equipment and Technology to the Government of IranRead the Press Release
A dual Iranian-U.S. citizen was arrested Friday in Chicago, on criminal charges related to his alleged conspiracy to illegally export U.S. goods, technology and services to end users in Iran, including the government of Iran, in violation of the International Emergency Economic Powers Act (IEEPA).
According to court documents, Kambiz Attar Kashani, 44, conspired to illegally export goods and technology to the Central Bank of Iran (CBI), which the U.S. government recognizes is an agency of the government of Iran.
“Kashani and his co-conspirators procured U.S.-origin goods and information technology for ultimate use in Iran, including for use by the Government of Iran,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “Kashani repeatedly lied to numerous U.S. companies to conceal his intention to ship items to Iran, allowing him to illegally obtain information technology for use by the CBI and other Iranian entities. The Justice Department continues to do everything it can to end the illegal export of items that threaten our national security.”
“As alleged, Kashani orchestrated an elaborate scheme to evade U.S. export laws and use the U.S. financial system in procuring U.S. electronic equipment and technology for the CBI, which has been designated by the United States government as acting for or on behalf of terrorist organizations,” said U.S. Attorney Breon Peace for the Eastern District of New York. “The defendant allegedly used two United Arab Emirates companies as fronts to procure items from multiple U.S. technology companies, including a company in Brooklyn. Kashani’s arrest underscores the unrelenting resolve of this office and the Department of Justice to prosecute those who seek to profit by compromising our national security.”
“Technology illegally transferred to Iran from the United States could be used by terrorists, which is why the FBI and its partners devote significant resources to these investigations,” said Assistant Director Alan E. Kohler Jr. of the FBI's Counterintelligence Division. “Those doing the bidding for Iran in the United States should expect the full force of our law enforcement and Intelligence Community partners.”
The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) has classified CBI as a Specially Designated National (SDN) signifying that CBI is acting for or on behalf of a terrorist organization. According to the U.S. government, CBI has materially assisted, sponsored and provided financial, material or technological support, goods or services to Lebanese Hizballah, a terrorist organization, and to the Qods Force of Iran’s Islamic Revolutionary Guards Corps (IRGC). The IRGC is a branch of the Iranian armed forces and represents the primary means of the Government of Iran to direct and implement its global terrorism campaign.
Kashani allegedly perpetrated the illegal transshipping scheme through two separate United Arab Emirates (UAE) front companies for which he acts as principal. From around February 2019 through June 2021, Kashani and his co-conspirators used the two UAE companies to procure electronic goods and technology from multiple U.S. technology companies, including a company located in Brooklyn, New York, for end users in Iran, including CBI, without obtaining required OFAC export licenses. Kashani and his co-conspirators intentionally concealed from the U.S. companies that they intended to ship the items to Iran, falsely claiming that the UAE front companies would be the ultimate end users.
Kashani is charged with one count of conspiracy to unlawfully export goods to Iran, and will make his initial court appearance in the Northern District of Illinois this afternoon. If convicted, he faces a maximum penalty of 20 years’ imprisonment and a $1 million fine. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI is investigating the case.
Assistant U.S. Attorneys Alexander A. Solomon and Meredith A. Arfa for the Eastern District of New York; Assistant U.S. Attorney Shawn McCarthy for the Northern District of Illinois; and Trial Attorney S. Derek Shugert of the National Security Division’s Counterintelligence and Export Control Section are prosecuting the case.
A complaint is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
U.S. Citizen Charged with Conspiring to Provide Electronic Equipment and Technology to the Government of IranRead the Press Release
A criminal complaint has been unsealed in federal court in Brooklyn charging Kambiz Attar Kashani, a dual citizen of the United States and Iran, with conspiring to illegally export U.S. goods, technology, and services to end users in Iran, including the Government of Iran, in violation of the International Emergency Economic Powers Act (IEEPA). Kashani was arrested yesterday in Chicago, Illinois, and had an initial appearance today before United States Magistrate Judge Sheila M. Finnegan at the federal courthouse in Chicago. The defendant was remanded pending a detention hearing.
Breon Peace, United States Attorney for the Eastern District of New York, Matthew G. Olsen, Assistant Attorney General of the Justice Department’s National Security Division, and Joseph R. Bonavolanta, Special Agent-in-Charge, Federal Bureau of Investigation, Boston Field Office (FBI), announced the arrest.
“As alleged, Kashani orchestrated an elaborate scheme to evade U.S. export laws and use the U.S. financial system in procuring U.S. electronic equipment and technology for the Central Bank of Iran, which has been designated by the United States government as acting for or on behalf of terrorist organizations. The defendant allegedly used two United Arab Emirates companies as fronts to procure items from multiple U.S. technology companies, including a company in Brooklyn,” stated United States Attorney Peace. “Kashani’s arrest underscores the unrelenting resolve of this Office and the Department of Justice to prosecute those who seek to profit by compromising our national security.”
“We arrested Kambiz Attar Kashani for conspiring to deceive U.S. companies, including one headquartered in Massachusetts, by illegally exporting their highly sophisticated electronic equipment and technology to the Government of Iran. We believe Mr. Kashani profited financially by strengthening the economy of one of the world’s most infamous state sponsors of terrorism, while circumventing critical U.S. laws designed to protect our national security interests,” stated FBI Special Agent-in-Charge Bonavolonta. “This case is another example of the FBI’s commitment to work with our law enforcement partners to protect American businesses and stop the illegal export of sensitive information and technology to nations that are hostile to the United States.”
As set forth in the complaint, Kashani conspired to illegally export goods and technology to the Central Bank of Iran (CBI), which the United States government recognizes is an agency of the Government of Iran. The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) has classified CBI as a Specially Designated National (SDN) signifying that CBI is acting for or on behalf of a terrorist organization. According to the U.S. government, CBI has materially assisted, sponsored and provided financial, material or technological support, goods or services to Lebanese Hizballah, a terrorist organization, and to the Qods Force of Iran’s Islamic Revolutionary Guards Corps (IRGC). The IRGC is a branch of the Iranian armed forces and represents the primary means of the Government of Iran to direct and implement its global terrorism campaign.
Kashani allegedly perpetrated the illegal transshipping scheme through two separate United Arab Emirates (UAE) front companies for which he acts as principal. From around February 2019 through June 2021, Kashani and his co-conspirators used the two UAE companies to procure electronic goods and technology from multiple U.S. technology companies, including a company located in Brooklyn, New York, for end users in Iran, including CBI, without obtaining required OFAC export licenses. Kashani and his co-conspirators intentionally concealed from the U.S. companies that they intended to send the items to Iran, falsely claiming that the UAE front companies would be the ultimate end users.
The charge in the complaint is an allegation, and the defendant is presumed innocent unless and until proven guilty.
The government’s case is being handled by the Office’s National Security and Cybercrime Section. Assistant United States Attorneys Alexander A. Solomon and Meredith A. Arfa are in charge of the prosecution, with assistance provided by Trial Attorney S. Derek Shugert of the Justice Department’s Counterintelligence and Export Control Section and Assistant United States Attorney Shawn McCarthy of the Northern District of Illinois.
Defendant:
KAMBIZ ATTAR KASHANI
Age: 44
United Arab EmiratesE.D.N.Y. Docket No.: 21-MJ-31
Three Long Island Women Indicted for Assaulting a Delta Airlines Security Officer at JFK AirportRead the Press Release
An indictment was unsealed today in federal court in Brooklyn charging Jordan Nixon, Janessa Torres and Johara Zavala with assaulting an airline security officer in a jetway at John F. Kennedy International Airport (“JFK Airport”) on September 22, 2021. The defendants were arrested this morning and are scheduled to be arraigned this afternoon before United States Magistrate Judge Vera M. Scanlon.
Breon Peace, United States Attorney for the Eastern District of New York, Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Melinda Katz, Queens County District Attorney, announced the arrests and indictment.
“As alleged, the defendants viciously assaulted an airline security officer by beating him to the floor with his radio and then kicking and punching him in the face and body while he was down,” stated United States Attorney Peace. “The extreme and aggressive behavior in connection with our air travel is out of control. This Office has zero tolerance for violent conduct that threatens the safety of airline passengers and employees and will prosecute defendants who allegedly engage in such conduct to the fullest extent of the law.” Mr. Peace also expressed his appreciation to the Port Authority Police Department for their assistance in the investigation.
“The FBI is the lead federal agency in charge of arresting those who assault, intimidate, or threaten flight crew, or endanger the safety of other passengers,” stated FBI Assistant Director-in-Charge Driscoll. “Anyone who thinks they can get away with this type of unruly behavior should be reminded that their actions are criminal and can result in time behind bars as a result of federal criminal charges. We are aggressively addressing this emerging threat and take all cases seriously.”
“The defendants allegedly attacked two airline employees, who were simply doing their jobs,” stated Queens District Attorney Katz. “The friendly skies must not turn into chaos and turmoil because some passengers refuse to abide by the rules. Our airport personnel must be safe in order to keep the flying public safe.”
As alleged in court filings, the defendants refused to leave a jetway at JFK Airport after they were informed that they would be denied boarding for a Delta Airlines scheduled flight to San Juan, Puerto Rico. The defendants were belligerent, with one appearing to be visibly disoriented and possibly intoxicated, and another who was refusing to properly wear her mask. The flight’s Gate Agent (“Employee 1”) notified the flight crew of the defendants’ belligerent conduct, and the captain of the flight and a member of the flight crew determined that the defendants should not be allowed to board the flight. The defendants refused the request of an airline security officer (“Employee 2”) to leave the jetway and approached him while yelling and cursing. One defendant struck Employee 2 repeatedly with his own radio, and he fell to the floor. When Employee 1 tried to assist Employee 2, one defendant punched Employee 1 in the face. All three defendants then punched and kicked Employee 2 in the face and body while Employee 2 was on the floor. Employees 1 and 2 were later treated at a hospital for their injuries.
The charges in the indictment are allegations and the defendants are presumed innocent unless and until proven guilty. If convicted, the defendants face up to 10 years in prison.
The government’s case is being handled by the Office’s General Crimes Section. Assistant United States Attorney Nina Gupta is in charge of the prosecution.
The Defendants:
JORDAN NIXON
Age: 21
Bay Shore, New YorkJANESSA TORRES
Age: 21
Central Islip, New YorkJOHARA ZAVALA
Age: 44
Central Islip, NYE.D.N.Y. Docket No. 21-CR-633 (RJD)
Queens Man Charged with Transporting 13-Year-Old Child to Engage in SexRead the Press Release
A six-count indictment was unsealed today in federal court in Brooklyn charging Manuel Moretti with Mann Act crimes stemming from the coercion of a 13-year-old child to engage in sexual activity with him on at least four occasions. Moretti was arrested today and is scheduled to be arraigned this afternoon before United States Magistrate Judge Vera M. Scanlon.
Breon Peace, United States Attorney for the Eastern District of New York, and Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the arrest and charges.
“As alleged, for several months last year, Moretti used different social media platforms to lure a 13-year-old child across state lines for the purpose of repeatedly engaging in sexual activity. These allegations serve as a reminder of the dangers to our children from online predators and the importance of being aware of whom our children are communicating with online,” stated United States Attorney Peace. “This Office is deeply committed to protecting vulnerable victims from sexual exploitation and will vigorously prosecute offenders like Moretti, who allegedly prey on children.”
“Cyber space may not seem real to some children, or even parents, but it poses a real danger as we allege in this investigation,” stated FBI Assistant Director-in-Charge Driscoll. “Unfortunately, we can’t stop these crimes from happening because the internet allows sexual predators direct access to victims. We’re asking parents to start a conversation with their children about being safe online. The FBI New York Crimes Against Children and Human Trafficking Task Force believes Mr. Moretti may have victimized others and we’re asking anyone with information to call us at 1-800-CALL-FBI.”
As set forth in the indictment and court filings, Moretti met a 13-year-old child on a social networking site in January of last year. He then arranged for the child to travel across state lines to Moretti’s residence in Queens on several occasions over a four-month period between January and April 2021 for the purpose of engaging in sexual activity. Moretti also provided the child a fraudulent identification document to facilitate future sexual encounters with the child. In December 2021, after Moretti was interviewed by the FBI, he contacted the child, this time via Snapchat, a different social networking site, for the purpose of engaging in sexual activity.
The charges in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty.
If convicted of all counts, Moretti faces a mandatory minimum sentence of 10 years’ imprisonment.
Assistant United States Attorney Margaret Schierberl is in charge of the prosecution.
The Defendant:
MANUEL MORETTI
Age: 39
Forest Hills, New YorkE.D.N.Y. Docket No. 22-CR-17 (SJ)
Surgery Centers and Medical Offices in New Jersey Settle Allegations of Federal Health Care FraudRead the Press Release
Breon Peace, United States Attorney for the Eastern District of New York, Scott J. Lampert, Special Agent-in-Charge, U.S. Department of Health and Human Services, Office of the Inspector General, New York Region (HHS-OIG), and Norbert E. Vint, Deputy Inspector General, Office of Personnel Management (OPM), announced today that six surgery centers and medical offices affiliated with Interventional Pain Management Center P.C. (“IPMC”), a company owned by Dr. Amit Poonia, have agreed to pay $7,447,340.75 to resolve liability under the False Claims Act for claims submitted to federal health care programs for acupuncture treatment.
“This settlement holds the defendants accountable for mischaracterizing acupuncture as a surgical procedure in order to dishonestly obtain millions of dollars from Medicare and the Federal Employees Health Benefit Program,” said United States Attorney Peace. “Working with our partners at the Department of Health and Human Services Office of the Inspector General and the Office of Personnel Management, we identified the false claims that enabled our Office to negotiate resolutions that resulted in a significant recovery of taxpayer dollars.”
“Medical professionals are expected to bill taxpayer funded health care programs correctly to ensure that they remain solvent and available to those that need their services,” stated HHS-OIG Special Agent-in-Charge Lampert. “Along with our law enforcement partners, this settlement affirms our commitment to ensuring that individuals and entities that bill federal health care programs do so in an honest manner.”
“Today’s settlement reminds all providers that if they submit false claims, they will be held accountable,” stated OPM Deputy Inspector General Vint.
The defendants treated patients with electro-acupuncture devices called P-Stim and NeuroStim/NSS (“NSS”). P-Stim and NSS procedures transmit electrical pulses through needles placed just under the skin on a patient’s ear. Both treatments are considered acupuncture under Medicare and Federal Employees Health Benefit Program (“FEHBP”) guidelines and are therefore ineligible for reimbursement by the government. From January 2012 through April 2017, the IPMC surgery centers and medical offices submitted claims to Medicare and FEHBP for P-Stim and NSS treatment and associated administration of anesthesia. In submitting the claims, the defendants used a billing code that mischaracterized the acupuncture treatment as a surgical implantation of a neurostimulator.
In addition to paying the civil settlement, Dr. Poonia, New Jersey Interventional Pain Management Center, PC; Advanced Interventional Pain Management Center, LLC; Global Anesthesia Group, LLC; Springfield Surgery Center, LLC; Park Avenue Surgery Center, LLC; and Endo Surgi Center of Old Bridge, LLC, have agreed to enter into an Integrity Agreement with the HHS-OIG. The Integrity Agreement requires that these entities and their owners implement specific measures intended to prevent future health care fraud and address evolving compliance risks. These measures include training for staff on applicable health care fraud laws and submitting to a claims review conducted by an Independent Review Organization to ensure compliance with Medicare billing requirements.
The allegations were brought to the government’s attention through the filing of a complaint captioned United States ex rel. Anu Doddapaneni and Christian Reyes v. Amit Poonia, MD., New Jersey Interventional Pain Management Center, P.C. et al., 18-CV-5214 pursuant to the qui tam provisions of the False Claims Act. Under the Act, private citizens can bring suit on behalf of the United States and share in any recovery. The claims resolved by the settlement are allegations only; there has been no determination of liability, nor a concession by the United States that its claims are not well founded.
The government’s case was handled by Assistant U.S. Attorney Jolie Apicella of the Office’s Civil Division with assistance from Civil Investigator Joseph Giambalvo.
The Defendants:
Dr. Amit Poonia, M.D.
New Jersey Interventional Pain Management Center P.C.
Advanced Interventional Pain Management Center LLC
Global Anesthesia Group LLC
Park Avenue Surgery Center LLC
Springfield Surgery Center LLC
Endo Surgi Center of Old Bridge LLC
E.D.N.Y. Docket No. 18-CV-5214 (ENV)
United States Attorney Breon Peace Announces Selection of Carolyn Pokorny as First Assistant United States AttorneyRead the Press Release
Today, United States Attorney Breon Peace announced his selection of Carolyn Pokorny to serve as First Assistant United States Attorney (FAUSA) for the Eastern District of New York. As FAUSA, Ms. Pokorny oversees the Criminal, Civil, Appeals and Administrative Divisions of the United States Attorney’s Office.
Ms. Pokorny returns to the United States Attorney’s Office after serving since 2019 as the first female Inspector General for the Metropolitan Transportation Authority (MTA) which is charged with oversight of the transit agency. As MTA Inspector General, Ms. Pokorny ushered in an unprecedented dedication to transparency and a willingness to take on big societal issues, such as homelessness, policing, and overtime abuse, that impact the MTA, its workers, riders, and taxpayers. Ms. Pokorny issued hundreds of recommendations for change to the authority, over 100 of which have been implemented. Under Ms. Pokorny’s watch, the Inspector General’s office recouped millions of dollars for the MTA and New York State, including through high profile criminal cases in collaboration with law enforcement partners across the region.
Ms. Pokorny has spent most of her career as a prosecutor and served as an Assistant U.S. Attorney in the Eastern District of New York for more than 14 years. During her tenure, she spent nine years in the Office’s Narcotics Section, serving as a line assistant and Deputy Chief, before being appointed Chief of Narcotics in 2005. While serving as Chief of Narcotics, she spearheaded the creation of the Office’s International Narcotics Strike Force devising a national strategy for prosecuting the leaders of Mexico's most powerful cocaine cartels, and led the international investigation that resulted in the conviction of over 30 leaders of Colombia's most powerful cocaine cartel. In recognition of her work, she received the U.S. Attorney General’s Award for Distinguished Service and the Federal Drug Agents Foundation “True American Hero” award. Ms. Pokorny also served as Senior Litigation Counsel in the Public Integrity Section, as Chief of the General Crimes Section, and as Deputy Chief of the Criminal Division.
In 2015, Ms. Pokorny was tapped by then Attorney General Loretta Lynch to serve as her Deputy Chief of Staff and Counselor. Prior to her appointment as Inspector General of the MTA in 2019, Ms. Pokorny served as Special Counsel for Public Integrity in the Executive Chamber and oversaw New York State’s Ethics, Risk and Compliance program.
Ms. Pokorny is a graduate of Brooklyn Law School where she served as the Associate Managing Editor of the Brooklyn Law Review. She served as an Assistant District Attorney in the Appeals Bureau of the Bronx District Attorney’s Office, which was followed by a two-year judicial clerkship with the late United States District Judge Arthur D. Spatt of the Eastern District of New York.
“I am pleased to welcome Carolyn back to the Eastern District of New York as First Assistant U.S. Attorney. We have known each other for over 20 years since having worked together as Assistant U.S. Attorneys in this Office. Carolyn is an outstanding lawyer and proven leader with a distinguished record of public service with the Department of Justice and with the State and City of New York. She not only brings a wealth of knowledge and experience to the Office, but also impeccable judgment and the utmost integrity,” stated United States Attorney Peace. “I look forward to our working together in pursuing this Office’s mission and advancing the interests of justice and equality for the people of this district.”
“U.S. Attorney Breon Peace has already proven to be a brilliant leader, and I am humbled to have this opportunity to serve as FAUSA as he executes his vision and fulfills the mission of this Office. It is also thrilling for me to return to the place that was my professional home for better part of two decades and rejoin the broader EDNY community of judges, defense attorneys, and talented courthouse staff,” stated First Assistant United States Attorney Pokorny.
Eastern District of New York United States Attorney’s Office Collects Nearly $250 Million in Criminal and Civil Actions in Fiscal Year 2021Read the Press Release
United States Attorney Breon Peace announced today that the Eastern District of New York collected $249,989,681.40 in criminal and civil actions in Fiscal Year 2021. Of this amount, $196,932,566.03 was collected in criminal actions and $53,057,115.37 was collected in civil actions, and $4,503,424.87 resulted from cases handled in conjunction with other U.S. Attorney’s Offices and litigating divisions of the Department of Justice. Additionally, $64,171,429 in assets tainted by crime was forfeited to the government.
“The Eastern District’s robust recoveries in fiscal year 2021 underscore its commitment to recovering funds for the federal treasury, seeking restitution for the victims of crime and forfeiting assets that are tainted by crime,” stated United States Attorney Peace. “Our collections and asset recovery programs hold defendants financially accountable for their illegal activities and ensure that their debts, particularly to victims, are paid.”
FY 2021 Collections Highlights
In October 2020, J&F Investimentos SA (J&F), a global conglomerate holding company based in Brazil and primarily involved in the meat and agriculture businesses, pleaded guilty to conspiring to violate the Foreign Corrupt Practices Act and agreed to pay the United States a criminal fine of $128,248,913. Between approximately 2005 and 2017, J&F, through certain of its employees and agents, paid millions of dollars in bribes to, and for the benefit of, Brazilian government officials to obtain financing from two Brazilian state-owned and state-controlled banks and to obtain approval for a merger from a Brazilian state-owned and state-controlled pension fund. In furtherance of the scheme, J&F used New York-based bank accounts in the name of shell companies to make hundreds of millions of dollars in corrupt payments for the benefit of Brazilian officials.
Also in October 2020, the Office collected $2,817,224.31 from Williamsburg Physical Therapy P.C. to resolve allegations of false claims submitted to Medicare, Medicaid and other federal healthcare programs for physical therapy services provided or supervised by someone other than the licensed physical therapist identified on the claim, including unlicensed aides. The settlement also resolved claims that the defendants wrongfully backdated services after treatment authorizations had expired.
In May 2021, the Office’s largest civil collection of $43,320,000 involved Bank Julius Baer & Co. Ltd., a Swiss bank with international operations, that admitted to conspiring to launder over $36 million in bribes through the United States to soccer officials with the Fédération Internationale de Football Association (FIFA) and other soccer federations. These bribes were in furtherance of a scheme in which sports marketing companies bribed soccer officials in exchange for broadcasting rights to soccer matches.
The Eastern District also forfeited $64,171,429 in assets tainted by crime. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used for a variety of purposes, including to compensate victims of crime. For example, over $42 million in forfeited funds will be remitted to victims in the FIFA corruption case, which is part of the government’s long-running investigation and prosecution of corruption in international soccer.
Collections Overview
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the United States and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims Fund, which distributes the funds collected to federal and state victim compensation and victim assistance programs.
Member of H-2 Mexican Drug Cartel Sentenced to 60 Months in Prison for International Narcotics Distribution ConspiracyRead the Press Release
Earlier today at the federal courthouse in Brooklyn, Deovaldo Gutierrez Alfaro, also known as “Leoba,” was sentenced by United States District Judge Carol Bagley Amon to 60 months’ imprisonment for his participation in a large-scale international narcotics distribution conspiracy. The defendant was arrested in Nayarit, Mexico in March 2019 and extradited to the United States in November 2019. Alfaro pleaded guilty in June 2021.
Breon Peace, United States Attorney for the Eastern District of New York, and William D. Bodner, Special Agent-in-Charge, Drug Enforcement Administration, Los Angeles Division (DEA), announced the sentence.
“With today’s sentence, the defendant is held accountable for conspiring to smuggle large quantities of heroin and other dangerous drugs into the United States and for transmitting hundreds of thousands of dollars in illegal drug proceeds between the United States and Mexico,” stated United States Attorney Peace. “This Office and its law enforcement partners are committed to dismantling international drug cartels and their distribution cells that fuel addiction and promote drug-related violence in our cities and local communities.”
“Drug trafficking organizations continue to flood our communities with drugs and perpetuate the cycle of addiction that is causing unprecedented overdose deaths across the nation,” stated DEA Los Angeles Special Agent-in-Charge Bodner. “This case exemplifies the hard work and collaborative efforts utilizing domestic and international resources to effectively disrupt sophisticated criminal syndicates.”
According to court filings and facts presented during court proceedings, the defendant was a member of the H-2 Cartel, a violent Mexican drug trafficking organization based in Nayarit and Sinaloa, Mexico. The H-2 Cartel had numerous drug distribution cells in the United States, including in Los Angeles, Las Vegas, Ohio, Minnesota, North Carolina and New York. The DEA estimates that between January 2013 and February 2017, the H-2 Cartel distributed on a monthly basis approximately 500 kilograms of heroin, 100 kilograms of cocaine, 200 kilograms of methamphetamine and 3,000 kilograms of marijuana into the United States and earned millions of dollars in illegal proceeds. In furtherance of its drug trafficking operation, the H-2 Cartel used firearms and physical violence, including torture and dozens of homicides.
Between June 2013 and December 2016, the defendant conspired with the H-2 Cartel to smuggle large quantities of heroin from Mexico into the United States and distribute the heroin throughout the country, including in the Eastern District of New York. The defendant also helped the Cartel move hundreds of thousands of dollars in drug proceeds from the United States back to Mexico. In September 2015 and November 2016, law enforcement seized more than three kilograms of heroin in connection with two drug shipments that the defendant had coordinated.
The government’s case is being handled by the Office’s International Narcotics & Money Laundering Section. Assistant United States Attorneys Craig R. Heeren, Ryan C. Harris, and Andrew D. Wang are in charge of the prosecution. The Justice Department’s Office of International Affairs provided substantial assistance in securing Alfaro’s arrest and extradition.
The Defendant:
DEOVALDO GUTIERREZ ALFARO
Age: 43
Residence: Nayarit, MexicoE.D.N.Y. Docket No. 16-CR-241 (CBA)
Queens Man Who Wanted to Attack Times Square Pleads Guilty to Receiving Firearm with Obliterated Serial NumberRead the Press Release
Ashiqul Alam pleaded guilty today to knowingly receiving a firearm with an obliterated serial number in Brooklyn, New York. The proceeding was held before United States Magistrate Judge Robert M. Levy. When sentenced, Alam faces 60 months’ imprisonment pursuant to the terms of his plea agreement with the government. As part of his plea agreement, Alam, a citizen of Bangladesh, agreed to the entry of an order of removal so he will be deported after completing his sentence.
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 Dermot F. Shea, Commissioner, New York City Police Department (NYPD), announced the guilty plea.
“With today’s guilty plea, Alam has admitted to purchasing a firearm for use in a full-scale, mass-casualty attack in Times Square,” stated United States Attorney Peace. “Protecting our national security and the residents of this city, state and nation from the threat of terrorist attacks at home or abroad continues to be one of the highest priorities of this Office and its law enforcement partners.”
As set forth in court filings, between August 2018 and the June 2019, Alam repeatedly expressed a desire to purchase firearms for use in a mass-casualty attack. Alam identified two targets, either Times Square or Washington, D.C., in order to kill a senior government official. In January 2019, Alam conducted several reconnaissance trips to Times Square, using his cellular telephone to make a video recording of the area as he searched for potential targets.
Alam conducted research about firearms on the internet and discussed purchasing firearms with an undercover law enforcement officer (“UC-1”). In March 2019, Alam told UC-1 that he would be interested in buying a Glock 9mm pistol. UC-1 introduced Alam to an “associate,” who offered to help Alam procure two illegal Glock G19 pistols. In April 2019, Alam underwent Lasik eye surgery, a procedure whose value he explained: “Let’s say we are in an attack, right, say that my glasses fall off. What if I accidentally shoot you? You know what I mean. Imagine what the news channel would call me the ‘Looney Tunes Terrorist’ or the ‘Blind Terrorist.’”
In May 2019, Alam was told by “UC-1” that the firearms he wanted to buy would have obliterated serial numbers, and he replied “Oh, that’s good man.” On June 6, 2019, Alam met the individual he believed was going to sell him firearms and was shown two Glock 19 semiautomatic pistols with obliterated serial numbers. Alam provided $400 towards the purchase of the two pistols and asked whether the Glock 19 pistol he had just purchased was compatible with a silencer. Alam was arrested shortly thereafter.
The government’s case is being handled by the Office’s National Security & Cybercrime Section. Assistant United States Attorneys David K. Kessler and Jonathan E. Algor are in charge of the prosecution, with assistance provided by Trial Attorney Stephanie Sweeten of the National Security Division’s Counterterrorism Section.
The Defendant:
ASHIQUL ALAM
Age: 25
Queens, New YorkE.D.N.Y. Docket No. 19-CR-0280 (LDH)
Long Island MS-13 Associate Pleads Guilty to Racketeering in Connection with the Murders of Four Young Men in a Central Islip Park in 2017Read the Press Release
Earlier today, Alexis Hernandez, an associate of the Guanacos Li’l Cycos Salvatruchas (“Guanacos”) 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 charges in connection with his participation in the April 11, 2017 murders of Justin Llivicura, Michael Lopez, Jorge Tigre, and Jefferson Villalobos. The defendant was arrested on July 13, 2017 at his home in Central Islip. When sentenced, Hernandez faces a maximum sentence of life in prison. Upon completion of his sentence, he faces deportation from the United States. Today’s 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 Stuart Cameron, Acting Commissioner, Suffolk County Police Department (SCPD), announced the guilty plea.
“With today’s guilty plea, the defendant acknowledges his role in the brutal and senseless murders of four young men he believed had disrespected the MS-13. I hope our efforts to bring these killers to justice provides some measure of comfort to the families of the victims, although no criminal case will replace their loved ones,” stated United States Attorney Peace. “This Office and its law enforcement partners remain steadfast in their commitment to seek justice for the victims of this terrible crime and to end the MS-13’s destructive reign of premeditated violence in our communities.”
“This was one of the most gruesome murders in Suffolk County’s history,” stated SCPD Acting Commissioner Cameron said. “I commend the U.S. Attorney’s Office for the Eastern District of New York and our law enforcement partners for ensuring Alexis Hernandez will be held accountable for his role in this brutal crime.”
According to court filings and statements by the defendant at the guilty plea proceeding, on the evening of April 11, 2017, two female associates of the MS-13 lured five young men, including the four victims, to a community park in Central Islip where they were attacked and killed. The MS-13 members and associates believed the victims to be members of a rival gang who had disrespected the MS-13. Hernandez and several other MS-13 members and associates met in a wooded area behind the park where weapons were distributed and the plan to kill the victims was discussed. The female associates arrived at the park, led the victims to a predetermined wooded area and sent the MS-13 members a text message notifying them of their arrival. Hernandez and the other 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 Hernandez and others, who prevented their escape. Hernandez, who was armed with a wooden club, helped to lead the victims deeper into the woods where other MS-13 members brutally murdered them with machetes, knives and wooden clubs. After the attack, the MS-13 members dragged the victims’ bodies to a more secluded spot in the woods and then fled. The victims’ bodies were discovered the following evening.
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:
ALEXIS HERNANDEZ
Age: 25
Central Islip, New YorkE.D.N.Y. Docket No. 16-CR-403 (GRB)
Defendant Sentenced to 78 Months in Prison for Transnational Fraud SchemeRead the Press Release
Earlier today, in federal court in Central Islip, Ajay Sharma, a citizen of India, was sentenced by United States District Judge Joan M. Azrack to 78 months’ imprisonment for conspiracy to commit wire fraud as part of a large-scale telemarketing scheme. The Court also ordered Sharma to pay restitution of $3,266,714, and forfeiture in the amount of $1,005,421.
Breon Peace, United States Attorney for the Eastern District of New York, and Thomas Fattorusso, Special Agent-in-Charge, Internal Revenue Service-Criminal Investigation, New York (IRS-CI) announced the sentence.
“Today’s sentence demonstrates that defendants like Ajay Sharma, who perpetrate transnational fraud schemes through lies and by instilling fear in their victims, will be brought to justice and pay for their crimes,” stated United States Attorney Peace. “This case was the result of a coordinated law enforcement response to disrupt fraudulent call centers based in India and protect the public from financial exploitation.” Mr. Peace thanked William Kalb, Special Agent-in-Charge, Treasury Inspector General for Tax Administration, Northeast Field Division; IRS-CI; the New York City Police Department and the Garden City Police Department for their invaluable assistance with the case.
“Ajay Sharma received a just sentence this morning for relentlessly stealing millions of dollars from innocent Americans by posing as Federal employees,” stated IRS-CI Special Agent-in-Charge Fattorusso. “IRS Criminal Investigation is determined to dismantle these criminal enterprises who victimize hard working United States citizens for personal gain. IRS-CI will continue to protect our financial system from fraudsters both abroad and here at home.”
Sharma, as the director and owner of APS Technology, was the leader and organizer of the fraud scheme. Between January 2018 and September 2018, operating from call centers in India, Sharma and his co-conspirators targeted victims in the United States and falsely claimed to be employees of the Internal Revenue Service, the Social Security Administration or the Drug Enforcement Administration. The victims were informed that they owed a sum of money to the United States government, or one of its agencies, and that they would be arrested if the debts were not promptly paid. After victims wired payments to bank accounts that the defendants had opened in the names of inactive and shell corporations to receive the fraud proceeds, the funds were withdrawn by Sharma and his co-conspirators.
Four of Sharma’s co-conspirators, Ankur Sharma, Armughanul Asar, Harpreet Singh and Jamal Zafar previously pleaded guilty and are awaiting sentencing. Two other co-conspirators, Ricardo Urbino and Kamal Zafar are scheduled for trial in March 2022.
The government’s case is being prosecuted by the Office’s Long Island Criminal Division. Assistant United States Attorneys Charles P. Kelly and Madeline O’Connor are in charge of the prosecution.
The Defendant:
AJAY SHARMA
Age: 45
Mumbai, IndiaE.D.N.Y. Docket No. 19-CR-024 (JMA)
Queens Man Sentenced to 33 Months in Prison for Posting Threats to Kill a Member of Congress and Illegally Possessing AmmunitionRead the Press Release
Earlier today, in federal court in Brooklyn, Eduard Florea was sentenced by United States District Judge Eric R. Komitee to 33 months in prison for transmitting threats to injure others, including threats against now-United States Senator Raphael Warnock, and possessing ammunition after having been convicted of a felony. Florea pleaded guilty to the charges in August 2021.
Breon Peace, United States Attorney for the Eastern District of New York, and Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the sentence.
“With today’s sentence, the defendant faces serious consequences for threatening the life of United States Senator Raphael Warnock as part of his effort to foment violence at the Capital on January 6, 2021 in connection with attempts to overturn the results of the 2020 election,” stated United States Attorney Peace. “This Office is deeply committed to protecting our democratic institutions and preserving our democracy, and will vigorously prosecute those who would undermine our founding principles as a nation by threatening the safety of our elected representatives or those who seek elected office.”
Florea posted threatening statements online about killing elected officials, including now-United States Senator Warnock, and committing other acts of violence in Washington, D.C., in connection with the certification of the results of the 2020 Presidential Election. For example, on January 5, 2021, at approximately 8:40 p.m., Florea posted, “We need to all come to an agreement . . . and go armed . . . and really take back Washington.” A few minutes later, Florea posted, “Tomorrow may very [well] be the day war kicks off . . .” At 11:53 p.m. the same day, Florea posted, “Warnock is going to have a hard time casting votes for communist policies when he’s swinging with the f***ing fish.” In the early morning hours of January 6, 2021, at approximately 12:42 a.m., Florea referenced Senator Warnock and stated, “Dead men can’t pass sh*t laws . . .”
On January 6, 2021, after the assault on the United States Capitol had begun, Florea posted that he intended to travel to Washington, D.C., as part of a group armed with firearms ready to engage in additional violence. Between approximately 2:00 p.m. and 6:00 p.m.—while the Capitol was under siege—Florea posted the following messages, among others:
- “Mine are ready….I am ready…. we need to regroup outside of DC and attack from all sides… talking to some other guys….I will keep watching for the signal.”
- “I am awaiting my orders…armed and ready to deploy….”
- “Guns cleaned loaded . . . got a bunch of guys all armed and ready to deploy . . . we are just waiting for the word”
- “Me and some guys are gearing up to head in. . . . where are you . . . 3 cars already are enroute . . . .all armed.”
- “It’s time to unleash some violence.”
On January 12, 2021, FBI Special Agents and Task Force Officers with the New York Joint Terrorism Task Force executed a search warrant at Florea’s home in Middle Village, Queens. The search revealed that Florea, who had been previously convicted of a New York state firearms-related felony, illegally possessed more than 1,000 rounds of ammunition.
The government’s case is being handled by the Office’s National Security and Cybercrime Section. Assistant United States Attorneys Francisco J. Navarro and Andrew P. Wenzel are in charge of the prosecution.
The Defendant:
EDUARD FLOREA
Age: 41
Middle Village, QueensE.D.N.Y. Docket No. 21-CR-037 (EK)
Former Long Island Doctor Sentenced to 23 Years in Prison for Causing the Overdose Deaths of Two Patients and Illegally Distributing OxycodoneRead the Press Release
Earlier today, in federal court in Central Islip, Michael Belfiore, a former medical doctor, was sentenced by United States Circuit Judge Joseph F. Bianco to 23 years in prison for the illegal distribution of oxycodone causing the deaths of two patients and the illegal distribution of oxycodone to those patients and to an undercover detective. In addition, Belfiore was ordered to forfeit $7,270 in illegal fees that he took from the two deceased patients and the undercover detective and to pay $17,000 in restitution based upon costs associated with the overdose deaths that he caused. Belfiore was convicted of the charges by a federal jury in May 2018 following a five-week trial. Belfiore’s medical license has lapsed and he is no longer practicing medicine.
Breon Peace, United States Attorney for the Eastern District of New York, Keith Kruskall, Acting Special Agent-in-Charge, Drug Enforcement Administration, New York Division (DEA), and Patrick J. Ryder, Commissioner, Nassau County Police Department (NCPD), announced the sentence.
“In violation of his oath to do no harm, Belfiore intentionally distributed highly addictive and potentially lethal opioids in dosages and quantities that resulted in the overdose deaths of two of his patients,” stated United States Attorney Peace. “Today’s sentence sends a strong message that this Office and its law enforcement partners will fight the opioid epidemic and seek serious punishment for medical professionals like Belfiore who betray their profession and use their prescription pads to further addiction, rather than as a tool to heal. I want to extend my sincere thanks to DEA’s Long Island Tactical Diversion Squad, who tenaciously investigated this case.”
“During the midst of an opioid epidemic, the defendant chose to use his education and medical training to do harm, and at the expense of two of his patients’ lives,” stated DEA Acting Special Agent-in-Charge Kruskall. “DEA and its law enforcement partners will continue to seek justice for the victims who have been betrayed and have suffered greatly at that hands of those who were trusted with their health and wellbeing.”
Belfiore, a former doctor of osteopathic medicine who primarily operated out of an office in Merrick, New York, illegally distributed oxycodone outside the usual course of professional practice and not for a legitimate medical purpose. Oxycodone is a powerful and highly addictive drug that is increasingly abused because of its potency when crushed into a powder and ingested. It is a controlled substance that may be dispensed by medical professionals only to patients suffering from significant pain that is documented through medical exams, diagnostic testing—such as x-rays and MRIs—and other objective proof. Although oxycodone is commonly prescribed in five milligram tablets, the trial evidence showed that Belfiore wrote thousands of 30 milligram prescriptions for oxycodone in quantities of up to 180 pills per month.
At trial, the evidence established that on February 28, 2013, Belfiore gave an illegal prescription for 120 30 mg oxycodone pills to 42-year-old Edward Martin. On March 5, Mr. Martin overdosed and died in his bed after snorting the oxycodone obtained from Belfiore’s prescription. On April 12, 2013, Belfiore gave an illegal prescription for 150 30 mg oxycodone pills to 32-year-old John Ubaghs. On April 13, 2013, Mr. Ubaghs was found unresponsive after overdosing on oxycodone prescribed by Belfiore, and was pronounced dead at the hospital.
Between March 2013 and August 2013, Belfiore intentionally dispensed six prescriptions of oxycodone without a legitimate medical purpose to an undercover detective with the NCPD’s Narcotics Vice Squad. Belfiore created fake medical charts to justify those prescriptions and during office meetings with the undercover detective, Belfiore’s “treatment” consisted of a discussion of the defendant’s trip to San Diego and his interest in helicopters, yachts and cigarette boats.
The case was investigated by the DEA’s Long Island Tactical Diversion Squad comprising agents and officers of the DEA, NCPD, Suffolk County Police Department, Port Washington Police Department and the U.S. Department of Health and Human Services, Office of Inspector General.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorneys Charles N. Rose and Bradley T. King are in charge of the prosecution.
The Defendant:
MICHAEL BELFIORE
Age: 58
Westbury, New YorkE.D.N.Y. Docket No. 15-CR-242 (JFB)
Bloods Gang Members Plead Guilty to RacketeeringRead the Press Release
Earlier today, in federal court in Central Islip, Dylan Cruz and Richard Michel, members of the Red Lane Gorillas set of the Bloods street gang, pleaded guilty before United States District Judge Joanna Seybert to racketeering charges. Cruz admitted his roles in two murders committed on Long Island, an attempted murder and conspiring to murder rival gang members in Brooklyn. Michel admitted his role in a murder committed with Cruz, a kidnapping and an attempted murder of a disloyal Bloods member. When sentenced, Cruz and Michel each face a maximum sentence of life imprisonment.
Breon Peace, United States Attorney for the Eastern District of New York, Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), Patrick J. Ryder, Commissioner, Nassau County Police Department (NCPD), and Dermot F. Shea, Commissioner, New York City Police Department (NYPD), announced the guilty pleas.
“With today’s guilty pleas, the defendants have admitted their involvement in a slew of senseless violent crimes, including murders, committed in furtherance of a criminal enterprise, the Bloods gang,” stated United States Attorney Peace. “This Office, along with its federal and state law enforcement partners, will continue its unrelenting efforts to eradicate gang violence in the district and hold accountable all those who threaten the safety and well-being of our communities.”
According to court filings and statements made by the defendants at the guilty plea proceedings, Cruz and Michel, along with other members of the Red Lane Gorillas engaged in a violent gang war against rival gangs, including the Crips and the 5-9 Brims set of the Bloods, in Nassau County and Brooklyn. Additionally, Cruz and Michel engaged in extreme violence against anyone suspected of disloyalty or disrespecting their gang.
Cruz and Michel admitted their roles in the July 15, 2012 murder of Anthony Richard, an individual that they wrongly suspected of assisting the Crips in the 2010 murder of a member of their gang. Cruz and Michel, together with fellow gang members and associates to locate the victim, obtained a firearm, and followed the victim’s vehicle to Baldwin Harbor, New York. When Richard victim parked his vehicle, Cruz exited the vehicle he was travelling in, walked up to the victim’s car and fired approximately 15 shots into the victim’s vehicle at close range. Richard was killed and a passenger in the vehicle was wounded. In addition, Cruz admitted to November 17, 2010 shooting of a rival gang member in Roosevelt, New York, as well as conspiring to kill members of the 5-9 Brims, including the February 20, 2016 shooting of a rival gang member in Queens, New York. Michel also admitted to the October 13, 2011 kidnapping and assault of a gang member in Hempstead, New York and the September 9, 2016 attempted murder of a disloyal fellow Bloods member in Uniondale, New York.
Cruz also admitted to committing the October 15, 2014 murder of Ehrik Williams in Hempstead, New York. Cruz wrongly believed that Williams was the individual who had robbed an associate of the defendant. Cruz walked up behind Williams in broad daylight and fired multiple shots at him, killing him.
This case was brought as part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. As part of the program, U.S. Attorneys’ Offices work in partnership with federal, state, local and tribal law enforcement and their local communities to develop effective, locally based strategies to reduce violent crime.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorneys Nicole Boeckmann, Michael Maffei and Oren Gleich are in charge of the prosecution.
The Defendants:
DYLAN CRUZ (also known as “L Banga” and “Red Lane Banga”)
Age: 30
Brooklyn, New YorkRiCHARD MICHEL (also known as “G-Light” and “Gangsta Light”)
Age: 41
Brooklyn, New YorkE.D.N.Y. Docket Nos. 18-CR-664 (S-1) and (S-3) (JS)
Six Individuals, Including a Village of Brewster Police Officer, Charged in Sex Trafficking and Bribery SchemeRead the Press Release
A 14-count indictment was unsealed today in federal court in Brooklyn charging Luz Elvira Cardona, Roberto Cesar Cid Dominguez, Cristian Noe Godinez, Blanca Hernandez Morales, Jose Facundo Zarate Morales and Wayne Peiffer, a Village of Brewster police officer, with conspiracy to transport minors and the transportation of minors, sex trafficking, conspiracy to commit Hobbs Act extortion, promotion of prostitution, use of interstate facilities to commit bribery and related conspiracy counts.
Cardona, Cid Dominguez, Hernandez Morales and Zarate Morales were arrested earlier today in Queens, New York. Peiffer was arrested earlier today in Highland, New York. Godinez is currently a fugitive. The defendants are scheduled to be arraigned this afternoon before United States Magistrate Judge James R. Cho.
Breon Peace, United States Attorney for the Eastern District of New York, Ricky J. Patel, Acting Special Agent-in-Charge, Department of Homeland Security, Homeland Security Investigations, New York (HSI), Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Dermot F. Shea, Commissioner, New York City Police Department (NYPD), announced the arrests and charges.
“As alleged, the defendants conspired to lure young women and minor girls to travel to the United States based on false promises of a better life and forced them into prostitution once they arrived. The defendants allegedly received assistance in carrying out this conspiracy from a corrupt police officer who traded the honor of his badge and sworn oath for free sexual services,” stated United States Attorney Peace. “This Office is committed to bringing sex traffickers to justice and dismantling organizations that victimize women.” Mr. Peace thanked the Putnam County Sheriff’s Department, Putnam County District Attorney’s Office and Westchester Putnam County Real Time Crime Center for their invaluable assistance with the case.
“As alleged, the individuals named in the indictment were part of an elaborate network of conspirators that used deception and coercion to sell dreams of a better life in the United States to young and impressionable women, who arrived only to be forced into a miserable life of torment, sexual abuse and prostitution at the hands of their captors,” stated HSI Acting Special Agent-in-Charge Patel. “The criminal organization also allegedly retained the services of a corrupt cop, who betrayed the badge and the people that he swore to protect by being complicit in these deplorable acts and accepting payments in sexual favors. This case involved true collaboration between federal, state and local law enforcement partners to bring the hierarchy of this trafficking organization to justice.”
“Our arrest of a police officer isn't the most egregious facet of this investigation. We allege Mr. Peiffer had sex with the girls being trafficked as payment for his protection of the traffickers. The oath law enforcement officers take affirms they will serve and protect law abiding citizens and vulnerable members of the community, not aid and abet criminals who are abusing young girls and forcing them to have sex against their will. The FBI New York Child Exploitation and Human Trafficking Task Force and our law enforcement partners have done outstanding work searching out the leaders of these criminal organizations and holding them accountable. However, that's only half of the story of their incredible work. Now they're helping the victims through the trauma they experienced, and getting them the help they need to heal,” stated FBI Assistant Director-in-Charge Driscoll.
“The allegations in today’s indictment – that these two illicit organizations were aided for years by a sworn officer who betrayed his solemn oath to protect the public – represent among the most heinous crimes we confront. The NYPD and our law enforcement partners share an unwavering commitment to protect survivors of human trafficking and to ensure that anyone seeking to profit through the abuse and exploitation of others is brought to justice. I commend our NYPD officers, government partners, and the United States Attorney’s Office in the Eastern District of New York for their tireless work in dismantling these entities and for successfully pursuing this important case,” stated NYPD Commissioner Shea.
As set forth in court filings, the charges relate to the operation of two sex trafficking and prostitution organizations – the Cid-Hernandez Sex Trafficking Organization and the Godinez Prostitution Business – and the years-long bribery of Peiffer, who allegedly accepted free sexual services by the two organizations in exchange for protecting the organizations from law enforcement detection and arrest.
Since approximately May 2002, members of the Queens-based Cid-Hernandez Sex Trafficking Organization allegedly engaged in the sex trafficking of young women and minor girls and the promotion of prostitution. Cardona, Cid Dominguez, Hernandez Morales and Zarate Morales used force, threats of force, fraud and coercion to cause young women and minor girls from Mexico to engage in prostitution in the United States. Members of the organization pressured the victims to travel to the United States with false promises of employment and a better life. Once smuggled into the United States, the victims were forced to engage in prostitution. The young women and minor girls were transported to prostitution clients throughout the State of New York.
The Godinez Prostitution Business also regularly caused women to be transported from a location in Queens to various locations, including Brewster, New York, for the purpose of engaging in prostitution. Noe Godinez worked as a driver for the Godinez Prostitution Business and transported women along preassigned routes to prostitution clients.
Both the Cid-Hernandez Sex Trafficking Organization and the Godinez Prostitution Business operated in Brewster, where they received protection from Peiffer. Since at least 2006, Peiffer has been a police officer with the Village of Brewster Police Department (“BPD”). For more than eight years, Peiffer allegedly directed members of the Cid-Hernandez Sex Trafficking Organization and the Godinez Prostitution Business to deliver women to him, including at the BPD police station, so that he could engage in sexual activity with the women at no cost to Peiffer. In exchange, Peiffer provided the Cid-Hernandez Sex Trafficking Organization and the Godinez Prostitution Business protection from arrest, including by advanced warning of law enforcement operations and intervening to prevent arrest.
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 Civil Rights Section. Assistant United States Attorneys Margaret Lee, Nicholas Moscow and Rachel A. Bennek are in charge of the prosecution.
The Defendants:
LUZ ELVIRA CARDONA
Age: 33
Queens, New YorkROBERTO CESAR CID DOMINGUEZ
Age: 54
Queens, New YorkCRISTIAN NOE GODINEZ
Age: 42
Queens, New YorkBLANCA HERNANDEZ MORALES
Age: 51
Queens, New YorkJOSE FACUNDO ZARATE MORALS
Age: 32
Queens, New YorkWAYNE PEIFFER
Age: 48
Highland, New YorkE.D.N.Y. Docket No. 21-CR-622 (LDH)
Panamanian Intermediary Pleads Guilty for His Role in an International Bribery and Money Laundering SchemeRead the Press Release
BROOKLYN, NY – Earlier today, at the federal courthouse in Brooklyn, Ricardo Alberto Martinelli Linares (Ricardo Martinelli Linares) pleaded guilty to conspiracy to commit money laundering for his role in a massive bribery and money laundering scheme involving Odebrecht S.A. (Odebrecht), a Brazil-based global construction conglomerate. On December 2, 2021, Luis Martinelli Linares, the defendant’s brother, pleaded guilty to engaging in the same scheme. Today’s proceeding was held before United States District Judge Raymond J. Dearie.
Breon Peace, United States Attorney for the Eastern District of New York, Kenneth A. Polite Jr., Assistant Attorney General of the Justice Department’s Criminal Division, and Jay Greenberg, Acting Assistant Director of the Federal Bureau of Investigation’s Criminal Investigative Division (FBI), announced the guilty plea.
“The Martinelli Linares brothers have admitted to establishing secret bank accounts in the names of shell companies in foreign countries and the United States in order to disguise close to $30 million in Odebrecht’s bribe payments to one of their close relatives, a high-ranking public official in Panama,” stated United States Attorney Peace. “Through the tenacious efforts of the Department of Justice, this Office and our law enforcement partners, the defendants have now been held to account for their corrupt schemes.”
“Ricardo and Luis Martinelli Linares played integral roles in the corrupt scheme to funnel Odebrecht bribes to a high-ranking Panamanian government official,” stated Assistant Attorney General Polite. “They used the U.S. financial system to further their scheme, took steps to create shell company accounts at offshore banks to try to evade responsibility, and used some of the bribe proceeds for their personal benefit. The guilty pleas of Ricardo Martinelli Linares and Luis Martinelli Linares demonstrate that the Department of Justice remains committed to combating corruption at home and abroad. The Criminal Division will work with its law enforcement partners around the globe to hold individuals who use our financial system to promote corruption and launder illicit funds accountable.”
“Today’s guilty plea demonstrates the FBI’s commitment to working with our law enforcement partners around the world to bring justice to those engaged in international corruption,” stated FBI Acting Assistant Director Greenberg. “The Martinelli Linares brothers’ actions not only violated the law, but they also damaged public trust. The FBI will continue to aggressively pursue public officials and their co-conspirators who engage in this type of corrupt scheme.”
The Odebrecht scheme involved the payment of more than $700 million in bribes to government officials, public servants, political parties, and others in Panama and other countries around the world to obtain and retain business for the company. On December 21, 2016, Odebrecht pleaded guilty in the Eastern District of New York to a criminal information charging it with conspiracy to violate the anti-bribery provisions of the Foreign Corrupt Practices Act for its involvement in the bribery and money laundering scheme.
At the plea hearing, Ricardo Martinelli Linares admitted that he agreed with his brother, Luis Alberto Martinelli Linares (Luis Martinelli Linares), and others to establish offshore bank accounts in the names of shell companies to receive and disguise over $28 million in bribe proceeds from Odebrecht for the benefit of his close relative, a high-ranking public official in Panama. To advance the scheme, Ricardo Martinelli Linares admitted that he agreed with others to cause the wiring of the Odebrecht bribe funds into and out of the United States.
Ricardo Martinelli Linares and Luis Martinelli Linares were initially arrested at el Aeropuerto Internacional la Aurora in Guatemala on July 6, 2020, pursuant to a provisional arrest request from the United States as they were attempting to depart Guatemala on a private plane. The defendants were charged on February 4, 2021, in an indictment in connection with this bribery and money laundering scheme. Luis Martinelli Linares was extradited from Guatemala to the United States on November 15, 2021, and pleaded guilty to conspiracy to commit money laundering for his role in the scheme on December 2, 2021. Ricardo Martinelli Linares was extradited from Guatemala to the United States on December 10, 2021.
The Department of Justice commended and thanked the Government of Guatemala for its assistance in the extradition of both Ricardo Martinelli Linares and Luis Martinelli Linares to the United States. The Department’s Office of International Affairs provided substantial assistance in securing the arrest and extradition of both Ricardo Martinelli Linares and Luis Martinelli Linares. The Brazilian Ministerio Publico Federal, Departamento de Polícia Federal, the Federal Office of Justice in Switzerland, law enforcement authorities in Guatemala including the Public Ministry of Guatemala and Specialized Unit for International Affairs, and law enforcement authorities in El Salvador also provided significant cooperation.
The case is being prosecuted by Assistant United States Attorney Alixandra Smith of the Office’s Business and Securities Fraud Section, Trial Attorney Michael Culhane Harper of the Criminal Division’s Fraud Section, and Trial Attorneys Barbara Levy and Michael Redmann of the Criminal Division’s Money Laundering and Asset Recovery Section. Assistant United States Attorney Laura Mantell of the Office’s Civil Division is handling forfeiture matters. The FBI’s International Corruption Unit in New York is investigating this case.
The Defendants:
LUIS ENRIQUE MARTINELLI LINARES
Age: 39
Panama City, PanamaRICARDO ALBERTO MARTINELLI LINARES
Age: 42
Panama City, PanamaE.D.N.Y. Docket No. 21-CR-65 (RJD)
Panamanian Intermediary Extradited to the United States Pleads Guilty to International Bribery and Money Laundering SchemeRead the Press Release
Ricardo Alberto Martinelli Linares (Ricardo Martinelli Linares), 42, a citizen of Panama and Italy, pleaded guilty today in the Eastern District of New York before U.S. District Judge Raymond J. Dearie for laundering $28 million in a massive bribery and money laundering scheme involving Odebrecht S.A. (Odebrecht), a Brazil-based global construction conglomerate.
Ricardo Martinelli Linares was extradited to the United States from Guatemala on Dec. 10. On Dec. 2, his co-defendant and brother, Luis Enrique Martinelli Linares (Luis Martinelli Linares), who also was extradited to the United States, pleaded guilty in connection with the same scheme.
“Ricardo and Luis Martinelli Linares played integral roles in the corrupt scheme to funnel Odebrecht bribes to a high-ranking Panamanian government official,” said Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division. “They used the U.S. financial system to further their scheme, took steps to create shell company accounts at offshore banks to try to evade responsibility, and used some of the bribe proceeds for their personal benefit. The guilty pleas of Ricardo Martinelli Linares and Luis Martinelli Linares demonstrate that the Department of Justice remains committed to combating corruption at home and abroad. The Criminal Division will work with its law enforcement partners around the globe to hold individuals who use our financial system to promote corruption and launder illicit funds accountable.”
According to court documents, Ricardo Martinelli Linares admitted that he conspired with his brother, Luis Martinelli Linares, and others to establish offshore bank accounts in the names of shell companies to receive and disguise over $28 million in bribe proceeds from Odebrecht for the benefit of his close relative, a high-ranking public official in Panama. These funds were wired into, and out of, the United States.
“The Martinelli Linares brothers have admitted to establishing secret bank accounts in the names of shell companies in foreign countries and the United States in order to disguise close to $30 million in Odebrecht’s bribe payments to one of their close relatives, a high-ranking public official in Panama,” said U.S. Attorney Breon Peace for the Eastern District of New York. “Through the tenacious efforts of the Department of Justice, this Office and our law enforcement partners, the defendants have now been held to account for their corrupt schemes.”
According to court documents, Odebrecht paid more than $700 million in bribes to government officials, public servants, political parties, and others in Panama and other countries to obtain and retain business for the company. On Dec. 21, 2016, Odebrecht pleaded guilty in the Eastern District of New York to a criminal information charging it with conspiracy to violate the anti-bribery provisions of the Foreign Corrupt Practices Act (FCPA) for its involvement in the bribery and money laundering scheme.
“Today’s guilty plea demonstrates the FBI’s commitment to working with our law enforcement partners around the world to bring justice to those engaged in international corruption,” said Acting Assistant Director Jay Greenberg of the FBI’s Criminal Investigative Division. “The Martinelli Linares brothers’ actions not only violated the law, but they also damaged public trust. The FBI will continue to aggressively pursue public officials and their co-conspirators who engage in this type of corrupt scheme.”
Ricardo Martinelli Linares pleaded guilty to one count of conspiracy to commit money laundering, and agreed to a forfeiture amount of approximately $18.9 million. He is scheduled to be sentenced on May 13, 2022, and faces a maximum penalty of 20 years in prison. U.S. District Judge Dearie will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The Department of Justice commended and thanked the Government of Guatemala for its assistance in the extradition of both Ricardo Martinelli Linares and Luis Martinelli Linares to the United States. The Justice Department’s Office of International Affairs provided substantial assistance in securing the arrest and extradition of both Ricardo Martinelli Linares and Luis Martinelli Linares. The Brazilian Ministerio Publico Federal, Departamento de Polícia Federal, the Federal Office of Justice in Switzerland, law enforcement authorities in Guatemala including the Public Ministry of Guatemala, Specialized Unit for International Affairs, and law enforcement authorities in El Salvador also provided significant cooperation.
The FBI’s International Corruption Unit in New York is investigating this case, and the U.S. Drug Enforcement Administration (DEA) conducted the transport of Ricardo Martinelli Linares from Guatemala to the United States.
Trial Attorney Michael Culhane Harper of the Criminal Division’s Fraud Section, Trial Attorneys Barbara Levy and Michael Redmann of the Criminal Division’s Money Laundering and Asset Recovery Section (MLARS), and Assistant U.S. Attorney Alixandra E. Smith of the U.S. Attorney’s Office for the Eastern District of New York are prosecuting the case. Assistant U.S. Attorney Laura Mantell of U.S. Attorney’s Office for the Eastern District of New York’s Civil Division is handling forfeiture matters.
The Fraud Section is responsible for investigating and prosecuting all FCPA matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
The Kleptocracy Asset Recovery Initiative in MLARS was formed to prosecute money launderers and forfeit the proceeds of foreign official corruption and, where appropriate, to use those recovered assets to benefit the people harmed by the corruption and abuse of office. Individuals with information about possible proceeds of foreign corruption located in or laundered through the United States should contact federal law enforcement or send an email to [email protected].
Man Pleads Guilty Sexual Assault of Child in GrenadaRead the Press Release
A New York man pleaded guilty today in the Eastern District of New York to sexually assaulting a five-year-old child abroad.
According to court documents, during a trip to Grenada in October 2019, Treverson Roberts, 27, of Brooklyn, a dual United States and Grenadian citizen, forced a five-year-old boy to perform oral sex on him while the boy was temporarily left in Roberts’ care.
Roberts previously pleaded guilty to Grenadian charges related to the abuse but did not receive a sentence of imprisonment. Rather, the Grenadian court fined him $1,500 and required him to pay $600 compensation to the victim.
Roberts pleaded guilty to engaging in illicit sexual conduct with a minor in a foreign place and faces a maximum sentence of 30 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division, U.S. Attorney Breon Peace for the Eastern District of New York, and Acting Special Agent in Charge Rick J. Patel for Homeland Security Investigations (HSI) New York made the announcement.
HSI New York’s Child Exploitation Investigations Unit investigated the case with valuable assistance provided by the HSI Caribbean Attaché Office and the Royal Grenada Police Force.
Trial Attorney Charles Schmitz of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Laura Zuckerwise for Eastern District of New York are prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, 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.justice.gov/psc.