Eastern District of New York
Press releases recorded for this federal judicial district.
Former Brooklyn Business Owners Plead Guilty in Scheme to Sell Misbranded Beef ProductsRead the Press Release
Earlier today, at the federal courthouse in Brooklyn, Howard Mora and Alan Buxbaum pleaded guilty before United States District Judge Kiyo A. Matsumoto to conspiracy to commit wire fraud by using counterfeit United States Department of Agriculture stamps to sell misbranded lower quality beef at inflated prices to consumers. When sentenced, each defendant faces up to 20 years in prison and criminal forfeiture of $250,000.
Seth D. DuCharme, Acting United States Attorney for the Eastern District of New York, and Bethanne M. Dinkins, Special Agent-in-Charge, United States Department of Agriculture, Office of Inspector General (USDA-OIG), announced the guilty pleas.
“Mora and Buxbaum rang up hundreds of thousands of dollars in fraudulent profits by charging customers more than the defendants’ products were worth, and now they will pay a price for their avarice,” stated Acting United States Attorney DuCharme.
Between September 2011 and October 2014, the defendants were co-owners of A. Stein Meat Products, Inc., a wholesale meat processing and distribution business located in Brooklyn. During this period, the defendants purchased beef products that had been graded “Choice” quality by graders at the USDA Agricultural Marketing Service and directed their employees to carve off the “Choice” markings and re-stamp them as “Prime,” using counterfeit stamps. The meat was then sold at inflated prices to customers in the New York City metropolitan area.
The government’s case is being handled by the Office’s Public Integrity Section. Assistant United States Attorneys Ryan Harris and Turner Buford are in charge of the prosecution.
The Defendants:
HOWARD MORA
Age: 68
Westbury, NYALAN BUXBAUM
Age: 66
Monroe, NJE.D.N.Y. Docket No. 19-CR-425 (KAM)
Chief Executive Officer of Staten Island Technology Company Pleads Guilty to Wire FraudRead the Press Release
Earlier today, in federal court in Brooklyn, John Comito, Chief Executive Officer of AutoExec Computer Systems, Inc., pleaded guilty before United States Magistrate Judge Roanne L. Mann to wire fraud in connection with his theft of hundreds of thousands of dollars that was earmarked for the installation of internet access at 26 Catholic Elementary, Middle and High Schools in New York City. When sentenced, Comito faces up to 20 years in prison.
Seth D. DuCharme, Acting United States Attorney for the Eastern District of New York, Philip R. Bartlett, Inspector-in-Charge, United States Postal Inspection Service, New York Division (USPIS), and David L. Hunt, Inspector General of the Federal Communications Commission (FCC-OIG), announced the guilty plea.
“With today’s guilty plea, Comito will now be held to account for defrauding the E-rate federal program and schools in order to enrich himself at the expense of the deserving children the program was designed to serve,” stated Acting United States Attorney DuCharme. “This Office will remain vigilant in ensuring that taxpayer funds are not misappropriated but are used for their intended purpose and recipients.”
“Crimes like these make you shake your head in disbelief. This was no Robin Hood story, but a story of greed and total disregard for those in need of a quality and accessible education. Now with Mr. Comito’s guilty plea, he can spend his time paying for his theft of funds from the E-rate program and those who would have benefited from the needed telecommunication services the program provided,” stated USPIS Inspector-in-Charge Bartlett.
“The E-Rate Program was designed to assist the children in our nation’s neediest schools and we are committed to pursuing investigations into those who would corrupt this program for personal gain,” stated FCC-IG Hunt. “The result in this case demonstrates the outstanding working relationship between the FCC Office of Inspector General and the U.S. Attorney’s Office of the Eastern District of New York. We remain committed to supporting the investigation and prosecution of individuals who defraud this program. We would particularly like to thank the U.S. Postal Inspection Service, New York Division for their assistance in this matter.”
As set forth in the indictment and other court documents, the Federal Communications Commission program known as E‑rate distributes funds to schools and libraries, mostly serving economically disadvantaged children so that those institutions can acquire needed telecommunication services, internet access and related equipment. In order to obtain those funds, schools and libraries certify that they are purchasing equipment and services from a private vendor. The private vendor must, in turn, certify that it is providing the services and equipment as ordered, and is otherwise in compliance with the requirements of the program. If approved, the E-rate program defrays the cost to the schools and libraries by up to 90%.
From at least 2013 and into 2017, various Catholic elementary, middle and high schools located in the Diocese of Brooklyn contracted with AutoExec, through its CEO Comito, to provide them with telecommunications services and equipment. Comito agreed to provide specific services and equipment to the schools but AutoExec did not complete the projects as promised. At least eight schools received no items or services whatsoever. The remaining schools received partial, substandard, older or otherwise non-approved equipment and services. Nevertheless, Comito submitted false certifications to the FCC indicating that AutoExec had completed the work as promised in order to obtain E-Rate funds. From approximately February 2013 through September 2017, AutoExec received approximately $426,000 in E-rate funds, and additional funds from the schools, for these projects. By not doing the work, but keeping the money for personal expenses, Comito enriched himself at the expense of the underprivileged children the E-rate program was designed to serve.
Assistant United States Attorneys Francisco J. Navarro and Philip Pilmar are in charge of the prosecution.
The Defendant:
JOHN COMITO
Age: 69
Staten Island, New YorkE.D.N.Y. Docket No. 19-CR-593 (RRM)
Supervisor at Long Island Drug Manufacturer Indicted for Theft of over a Million Dollars Worth of Medical ProductsRead the Press Release
An indictment was unsealed today in federal court in Central Islip charging Gregory Settino with theft of medical products and making a false statement to a federal agent. Settino was arrested today and arraigned this afternoon via teleconference before United States Magistrate Judge Arlene R. Lindsay. Settino was released on a $250,000 bond.
Seth D. DuCharme, Acting United States Attorney for the Eastern District of New York, and Jeffrey Ebersole, Special Agent-in-Charge, Food and Drug Administration, Office of Criminal Investigations, New York Field Office (FDA-OCI), announced the arrest and charges.
“As alleged, Settino abused his supervisory position at a pharmaceuticals company to steal large quantities of equine drugs in order to enrich himself and without regard for how his sale of the medical products could potentially endanger the health of horses,” stated Acting United States Attorney DuCharme. “The defendant then allegedly compounded his criminal conduct by lying to an FDA Special Agent to minimize the scope of his thefts. Thanks to the combined efforts of the U.S. Attorney’s Office and the FDA, this illicit pipeline of stolen drugs to vets and horse trainers has been shut down.”
“The safety and effectiveness of veterinary drugs play a key role in maintaining the health of animals. When these drugs leave the legitimate supply chain, they can lose their effectiveness or become unsafe,” stated FDA-OCI Special Agent-in-Charge Ebersole. “We will continue to investigate and bring to justice those who endanger the health of animals.”
As set forth in court filings, Settino was the production supervisor of manufacturing at Luitpold Pharmaceuticals, Inc. in Shirley, New York. In January 2019, Luitpold was renamed American Regent. One of the products manufactured at Luitpold and American Regent was Adequan, an injectable equine drug administered to horses with degenerative joint disease and sold throughout the United States. Between 2012 and January 2020, Settino allegedly stole thousands of bottles of Adequan from Luitpold and American Regent valued at over $1 million, and sold those drugs to horse trainers and veterinarians at New York racetracks, including Belmont Park, for more than $600,000. Settino’s conduct endangered the health of horses because the drugs were not maintained, stored or transported in accordance with proper procedures for ensuring the safety, effectiveness and efficacy of the drugs. At times, Settino transported the drugs in shoeboxes stored in his car. At all times, the drugs were handled in violation of the FDA regulated supply chain.
On January 23, 2020, Settino was interviewed by an FDA Special Agent and allegedly falsely stated that he had stolen fewer than 100 bottles of Adequan from Luitpold and American Regent.
The charges in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty. If convicted, Settino faces up to 25 years in prison.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorney Charles P. Kelly is in charge of the prosecution.
The Defendant:
GREGORY SETTINO
Age: 58
Bethpage, New YorkE.D.N.Y. Docket No. 20-CR-340 (JS)
Manager of Medical Clinics in Brooklyn and Queens Sentenced to 13 Years in Prison for Multimillion-Dollar Money Laundering and Health Care Kickback SchemeRead the Press Release
WASHINGTON – Earlier today, in federal court in Brooklyn, Aleksandr Pikus was sentenced by United States District Judge Ann M. Donnelly to 13 years’ imprisonment for his role in a massive healthcare kickback and money laundering conspiracy. Pikus was also ordered by the Court to pay restitution in the amount of $23 million to Medicare, $16 million to Medicaid, $433,297 to the Internal Revenue Service and forfeit $2,614,233.79. Pikus was convicted by a federal jury in November 2019 of one count of conspiracy to commit money laundering, two counts of money laundering, one count of conspiracy to pay and receive health care kickbacks and one count of conspiracy to defraud the United States by obstructing the IRS.
Seth D. DuCharme, acting United States Attorney for the Eastern District of New York, Brian C. Rabbitt, Acting Assistant Attorney General of the Justice Department’s Criminal Division, Scott J. Lampert, Special Agent-in-Charge, U.S. Department of Health and Human Services, Office of Inspector General, New York Region (HHS-OIG), and Jonathan D. Larsen, Acting Special Agent-in-Charge, Internal Revenue Service Criminal Investigation, New York (IRS-CI), announced the sentence.
“The defendant’s key role in an elaborate scheme to steal and conceal tens of millions of dollars from the Medicare and Medicaid programs, was staggering in scope and deserving of the significant punishment he received today,” stated Acting U.S. Attorney DuCharme. “This Office takes very seriously its obligation to protect government funds that provide vital medical coverage counted upon by individuals and families who qualify because of their low income, disability or advanced years.”
“For nearly a decade, Aleksandr Pikus stole millions of dollars from the federal Medicare and Medicaid programs in a major healthcare kickback, money laundering and tax fraud scheme,” stated Acting Assistant Attorney General Rabbitt. “This significant sentence holds Pikus accountable for his leadership role in this scheme and reflects the Department’s commitment to protecting our valuable federal healthcare programs and their beneficiaries from this kind of fraud.”
“Pikus was the kingpin running a massive money laundering and kickback health care fraud syndicate,” stated HHS-OIG Special Agent-in-Charge Lampert. “Now, like others who plot to steal from government health programs, he is paying a heavy price for his crimes. Along with our law enforcement partners, we will continue to root out individuals who steal vital taxpayer-provided health funds.”
“The defendant’s greed and desire for money drove him to perpetrate crimes against our healthcare system and prey upon the vulnerable in our society,” stated IRS-CI Special Agent-in-Charge Larsen. “Justice has been served and IRS-CI will continue to work alongside our counterparts to uncover these schemes to hold these criminals accountable for their actions.”
The evidence at trial established that over the course of nearly a decade, Pikus and his co-conspirators perpetrated a scheme through a series of medical clinics in Brooklyn and Queens that employed doctors, physical and occupational therapists and other medical professionals who were enrolled in the Medicare and Medicaid programs. In return for illegal kickbacks, Pikus referred beneficiaries to these health care providers, who submitted claims to the Medicare and Medicaid programs. Pikus and his co-conspirators then laundered a substantial portion of the proceeds of these claims through companies he controlled, including by cashing checks at several New York City check-cashing businesses. Pikus then failed to report that cash income to the IRS. Instead, Pikus used the cash to enrich himself and others and to pay kickbacks to patient recruiters, who, in turn, paid beneficiaries to receive treatment at the medical clinics. The evidence further established that Pikus and his co-conspirators used sham shell companies and fake invoices to conceal their illegal activities.
Pikus used violent threats to protect his scheme. For example, he threatened a co-conspirator who was thinking about leaving the scheme by saying: “[Y]ou know, you[’re] already with us so the only way out is feet first through the door,” meaning “like in a body bag.” When a therapist left the Pikus Clinics, the defendant told a co-conspirator “I’m hearing that he might be trying to take patients from our clinics to that other clinic. . . tell him he better stop unless he likes his legs to be broken.”
More than 25 other individuals have pleaded guilty to or been convicted of participating in the scheme, including physicians, physical and occupational therapists, ambulette drivers and the owners of several of the shell companies used to launder the stolen money.
This case was investigated by the HHS-OIG and IRS-CI, and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the United States Attorney’s Office for the Eastern District of New York. Assistant Chief A. Brendan Stewart and Trial Attorneys Sarah Wilson Rocha and Andrew Estes of the Fraud Section are prosecuting the case with Assistant U.S. Attorney Claire S. Kedeshian of the Eastern District of New York’s Civil Division, which is handling forfeiture matters.
The Fraud Section leads the Medicare Fraud Strike Force, which is part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 15 strike forces operating in 24 districts, has charged more than 4,200 defendants who have collectively billed the Medicare program for approximately $19 billion. In addition, the U.S. Department of Health and Human Services Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
Defendant:
ALEKSANDR PIKUS
Age: 45
Brooklyn, New YorkE.D.N.Y. Docket No.: 16-CR-329 (AMD)
Head of New York Medical Clinics Sentenced to 156 Months in Prison for Multimillion-Dollar Money Laundering and Health Care Kickbacks SchemeRead the Press Release
Update: This sentencing was vacated. The defendant was resentenced on April 17, 2024, to nine years in prison and ordered to pay $39 million in restitution.
A Brooklyn man was sentenced to 156 months in prison today for his role in a vast multimillion-dollar health care kickback and money laundering conspiracy, the Department of Justice announced today.
Aleksandr Pikus, 45, of Brooklyn, New York, was sentenced by U.S. District Judge Ann M. Donnelly of the Eastern District of New York. Judge Donnelly also ordered Pikus to pay $39.4 million in restitution and to forfeit $2,614,233. On Nov. 15, 2019, after a two-week trial, Pikus was convicted by a jury of one count of conspiracy to commit money laundering, two counts of money laundering, one count of conspiracy to pay and receive health care kickbacks and one count of conspiracy to defraud the United States by obstructing the IRS.
“For nearly a decade, Aleksandr Pikus stole millions of dollars from the federal Medicare and Medicaid programs in a major healthcare kickback, money laundering and tax fraud scheme,” said Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division. “This significant sentence holds Pikus accountable for his leadership role in this scheme and reflects the Department’s commitment to protecting our valuable federal healthcare programs and their beneficiaries from this kind of fraud.”
“The defendant’s key role in an elaborate scheme to steal and conceal tens of millions of dollars from the Medicare and Medicaid programs, was staggering in scope and deserving of the significant punishment he received today,” stated Acting U.S. Attorney DuCharme. “This office takes very seriously its obligation to protect government funds that provide vital medical coverage counted upon by individuals and families who qualify because of their low income, disability or advanced years.”
“Pikus was the kingpin running a massive money laundering and kickback health care fraud syndicate,” said Scott J. Lampert, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services. “Now, like others who plot to steal from government health programs, he is paying a heavy price for his crimes. Along with our law enforcement partners, we will continue to root out individuals who steal vital taxpayer-provided health funds.”
“The defendant’s greed and desire for money drove him to perpetrate crimes against our healthcare system and prey upon the vulnerable in our society.,” stated IRS-CI Special Agent in Charge Larsen. “Justice has been served and IRS-CI will continue to work alongside our counterparts to uncover these schemes to hold these criminals accountable for their actions.”
According to evidence presented at trial, Pikus and his co-conspirators perpetrated a scheme through a series of medical clinics in Brooklyn and Queens over the course of nearly a decade, which clinics employed doctors, physical and occupational therapists, and other medical professionals who were enrolled in the Medicare and Medicaid programs. In return for illegal kickbacks, Pikus referred beneficiaries to these health care providers, who submitted claims to the Medicare and Medicaid programs.
Pikus and his co-conspirators then laundered a substantial portion of the proceeds of these claims through companies he controlled, including by cashing checks at several New York City check-cashing businesses. Pikus then failed to report that cash income to the IRS. Instead, Pikus used the cash to enrich himself and others and to pay kickbacks to patient recruiters, who, in turn, paid beneficiaries to receive treatment at the medical clinics. The evidence further established that Pikus and his co-conspirators used sham shell companies and fake invoices to conceal their illegal activities.
More than 25 other individuals have pleaded guilty to or been convicted of participating in the scheme, including physicians, physical and occupational therapists, ambulette drivers, and the owners of several of the shell companies used to launder the stolen money.
This case was investigated by the HHS-OIG and IRS-CI, and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Eastern District of New York. Assistant Chief A. Brendan Stewart and Trial Attorneys Sarah Wilson Rocha and Andrew Estes of the Fraud Section are prosecuting the case.
The Fraud Section leads the Medicare Fraud Strike Force, which is part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 15 strike forces operating in 24 districts, has charged more than 4,200 defendants who have collectively billed the Medicare program for approximately $19 billion. In addition, the U.S. Department of Health and Human Services Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
Brooklyn Felon Arrested for Possession of Firearm and Ammunition Used in Deadly Gang-Related ShootingRead the Press Release
Stanley Elianor, a member of the Folk Nation Street gang, was arrested today in connection with an indictment returned on August 27, 2020 charging him with being a felon in possession of a firearm and ammunition while having previously been convicted of a crime punishable by a term of imprisonment exceeding one year. Elianor will be arraigned this afternoon via teleconference by United States Magistrate Judge Ramon E. Reyes, Jr.
Seth D. DuCharme, Acting United States Attorney for the Eastern District of New York, William F. Sweeney, Jr., 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 arrest and indictment.
“Repeat offenders who possess firearms present an extreme danger to the community as this case tragically demonstrates with the senseless killing of Carey Gabay,” stated Acting United States Attorney DuCharme. “This Office and our law enforcement partners are doing everything in our power to take guns out of the hands of violent felons as a measure to prevent the senseless loss of life.” Mr. DuCharme expressed his grateful appreciation to the Kings County District Attorney’s Office for its assistance with the investigation.
“No one should have to fear standing in a crowd at a street festival, thinking their life could be taken by a gang member's stray bullet. This brand of mayhem is often the work of convicted felons shooting guns they’re not legally allowed to possess. We are methodically going down the list of these repeat offenders, and, as today's action demonstrates, we are committed to keeping them from terrorizing our besieged neighborhoods. But we can't do it alone. We are stronger together, and we need help from the communities these felons are targeting. If you know something about any recent shooting, call us at 212-384-5000. Help us protect our city from the criminals who seem determined to destroy it,” stated FBI Assistant Director-in-Charge Sweeney.
“This kind of gun violence erodes the fabric of city life and I commend the U.S. Attorney’s office for the Eastern District of New York for bringing these significant federal charges and ensuring, along with our NYPD detectives and law enforcement partners, that a measure of justice will be served,” stated NYPD Commissioner Shea.
As set forth in the indictment and detention memorandum, in the pre-dawn hours of September 7, 2015, Elianor was attending the J’ouvert cultural festival with other Folk Nation gang members and members of the Hood Starz, a group that was allied with Folk Nation, when they engaged in a shootout with members of the rival Crips street gang outside the Ebbets Field Houses in Crown Heights. Carey Gabay, an aide to New York Governor Andrew Cuomo, was struck in the head by a stray bullet and died on September 15, 2015. During the gun battle, Elianor allegedly possessed a .45 caliber Masterpiece Arms handgun which was recovered by the NYPD. The firearm has a large capacity magazine and was loaded with 27 rounds of ammunition. Prior to possessing this firearm, Elianor had been convicted of two counts of attempted criminal possession of a weapon in New York state court in October 2009.
The charges in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty. If convicted, Elianor faces up to 10 years in prison.
The government’s case is being handled by the Office’s Organized Crime and Gangs Section. Assistant United States Attorney Nadia E. Moore is in charge of the prosecution.
The Defendant:
STANLEY ELIANOR
Age: 29
Brooklyn, New YorkE.D.N.Y. Docket No. 20-CR-332 (MKB)
District Court Enters Permanent Injunction Shutting Down Telecom Carriers Who Facilitated Hundreds of Millions of Fraudulent Robocalls to Victim Consumers in the United StatesRead the Press Release
WASHINGTON – The U.S. District Court for the Eastern District of New York has permanently barred two individuals and two companies that transmitted massive volumes of fraudulent robocalls from operating as intermediate voice-over-internet-protocol (VoIP) carriers conveying telephone calls into the U.S. telephone system, the Department of Justice announced today. The consent decree entered yesterday by United States District Judge Eric R. Komitee resolves a civil complaint brought by the United States Attorney’s Office for the Eastern District of New York and the Department’s Consumer Protection Branch.
As alleged in a civil complaint filed earlier this year, in United States v. Nicholas Palumbo, et al., spouses Nicholas and Natasha Palumbo of Scottsdale, Arizona, and their companies, Ecommerce National LLC d/b/a TollFreeDeals.com and SIP Retail d/b/a sipretail.com, received millions of internet based calls every day from other entities, often located abroad. The defendants transmitted those calls first to other carriers within the United States, and ultimately to the phones of individuals, knowing that the calls were fraudulent government and business-imposter robocalls.
Many of the robocalls were made by individuals impersonating government investigators conveying false and alarming messages, such as the victim recipient’s social security number or other personal information had been compromised or otherwise connected to criminal activity, the recipient faced imminent arrest, the recipient’s assets were being frozen, the recipient’s bank and credit accounts had suspect activity, the recipient’s benefits were being stopped, and the recipient faced imminent deportation – each designed to frighten the recipient into paying large sums of money. Often the numbers that appeared as the originating or caller-ID numbers were “spoofed” to make it appear that they originated from legitimate government or business offices in the United States when in fact they were made by overseas scammers, often located in India. The defendants also sold to foreign call centers toll-free and other U.S. numbers that were left in fraudulent robocall messages on victims’ phones to deceive them into believing that the calls were legitimate and originated in the United States. These calls led to significant financial losses to victims throughout the United States and the Eastern District of New York, many of whom were elderly and vulnerable.
“The consent decree is a milestone in protecting the public, especially elderly and other vulnerable persons, from predatory robocall schemes that can cause catastrophic losses to victims in this district and throughout the country,” stated Acting United States Attorney Seth D. DuCharme.
“The Department is committed to protecting vulnerable Americans, particularly America’s seniors, from those who seek to steal their hard earned savings,” stated Acting Assistant Attorney General Ethan Davis of the Department of Justice’s Civil Division. “The Department will prosecute both those who place fraudulent robocalls, and those who knowingly facilitate such calls for profit. The Department recognizes the exceptional work of the Social Security Administration and Postal Inspection Service in investigating this case.”
“The Court's decision sends a clear message to gateway carriers who knowingly do business with scammers targeting Americans from overseas,” stated Gail S. Ennis, Inspector General for the Social Security Administration. “We will continue to pursue those who facilitate these scam calls by allowing them into the U.S. telephone network. I want to thank the Department of Justice for its support throughout this investigation and its commitment to protecting Americans from this insidious form of fraud and theft.”
Under the terms of the consent decree entered yesterday, the defendants agreed to be permanently barred from using the U.S. telephone system to deliver prerecorded messages through automatic means, carrying VoIP calls destined for phones in the United States, and providing any U.S. phone numbers to other individuals or entities. In addition, the defendants are permanently barred from serving as employees, agents or consultants to any person or entity engaged in these activities.
This case was handled by Assistant U.S. Attorneys Bonni Perlin and Dara Olds of the United States Attorney’s Office for the Eastern District of New York and Trial Attorneys Ann F. Entwistle and Charles B. Dunn of the Civil Division’s Consumer Protection Branch, in coordination with the Social Security Administration Office of the Inspector General and the U.S. Postal Inspection Service. Investigative support was also provided by the U.S. Treasury Inspector General for Tax Administration, U.S. Immigration and Customs Enforcement’s Homeland Security Investigation’s El Dorado Task Force and U.S. Secret Service. The Federal Trade Commission and the Federal Communications Commission also provided pertinent data.
Additional information about the Consumer Protection Branch and its enforcement efforts may be found at http://www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the Eastern District of New York, visit its website at https://www.justice.gov/usao-edny.
Bosnian National Charged with Robbery and Firearms Offenses in Connection with Attack on New York City Police OfficersRead the Press Release
An indictment was returned today in federal court in Brooklyn charging Dzenan Camovic with robbery and firearms offenses for his June 3, 2020 knife and firearm attack on multiple New York City Police Department (NYPD) police officers in Brooklyn. As set forth in the court filings, the defendant, a Bosnian national in the United States illegally, was motivated to attack the officers because of his interest in and support for violent Islamist extremism. The defendant is currently in state custody and will be arraigned at a later date.
The indictment charges Camovic with Hobbs Act robbery, using and discharging a firearm during that robbery, theft of a firearm that moved in interstate commerce and unlawful possession of a firearm as an illegal alien.
William P. Barr, Attorney General; Seth D. DuCharme, Acting United States Attorney for the Eastern District of New York; Christopher A. Wray, Director, Federal Bureau of Investigation (FBI); William F. Sweeney, Jr., Assistant Director-in-Charge, FBI, New York Field Office, and Dermot F. Shea, Commissioner, New York City Police Department (NYPD), announced the charges.
“Dzenan Camovic, an illegal alien and Bosnian national, is alleged to have used the cover of chaos during recent civil unrest in New York City to launch a premeditated and cowardly attack from behind against two New York City Police officers, brutally slashing one with a knife, stealing his weapon and opening fire, and injuring several responding officers,” stated Attorney General Barr. “We know that Camovic repeatedly yelled, ‘Allahu Akbar’ during his attack. We know that he possessed a significant volume of materials that demonstrates his interest in and support for violent Islamist extremism, including materials related to the Islamic State of Iraq and al-Sham (ISIS). But the defendant’s access to the dark web and his use of encrypted communication platforms has created evidentiary roadblocks to fully learning his plans and who he discussed them with. This is the second violent Islamist extremist attack on our land in the last nine months where the attacker used encrypted technology that can help cover his tracks and mask his communications. If not for the heroism and bravery of the responding NYPD officers who returned fire and took the assailant down early in the attack, untold additional officers and innocents could have been killed or injured.
“As we have alleged in the indictment and set forth in related filings, just before midnight on June 3, 2020, the defendant launched a surprise attack on police officers standing post on the streets of Brooklyn, nearly ending their lives. After stabbing a police officer in the neck, the defendant ripped a 9mm service pistol away from an officer and shot at the officers while perversely invoking religion,” stated Acting U.S. Attorney DuCharme. “Despite engaging in technical tradecraft that covered some of his tracks, this defendant cannot escape the reach of the investigators and prosecutors who are committed to making sure that he faces justice for his extremely serious crimes.” Mr. DuCharme expressed his grateful appreciation to the New York Joint Terrorism Task Force as well as the Kings County District Attorney’s Office for their outstanding work.
“Two New York City police officers, who swore an oath to protect and serve, were heinously ambushed in the line of duty at the hands of Dzenan Camovic as alleged in today’s indictment,” stated FBI Director Wray. “As fellow Americans were exercising their rights to demonstrate, these brave law enforcement officers were brutally attacked to further a violent agenda associated with ISIS and al-Qaeda in the Arabian Peninsula. This case demonstrates that the FBI remains steadfast in our fight to protect the U.S. from extremists who wish to harm our citizens and fellow law enforcement officers.”
“Several days into protests that erupted in New York City and throughout the country, we allege Dzenan Camovic, motivated by ISIS-inspired ideology, ambushed three NYPD officers on the streets of Brooklyn and caused serious injury to those officers. As he commenced his attack, the NYPD officers were doing what the citizens of our city ask them to do every day - to stand watch and protect their fellow New Yorkers. Mr. Camovic's alleged behavior has no place in our community. His assault on the officers was an attack against the entire New York City community. Our society has never tolerated this type of behavior, and today's federal charges will ensure Mr. Camovic isn't a threat to society again,” stated FBI Assistant Director-in-Charge Sweeney.
“Dzenan Camovic, as outlined in the indictment, was a consumer of terrorist propaganda and calls for violence by groups like al-Qaida and ISIS. His premeditated ambush of two New York City police officers can never be accepted. As the investigation continues into his motives, these significant federal charges reinforce the notion that an attack against police officers is an attack against society,” stated NYPD Commissioner Shea.
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, the defendant allegedly carried out his attack on NYPD police officers who were assigned to an anti-looting post near the intersection of Flatbush and Church Avenues in Brooklyn, New York. At approximately 11:30 p.m., Camovic walked past two uniformed police officers on foot patrol and appeared to crouch for several minutes watching them. Security footage shows that 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 the first officer (“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 had responded to the scene. Responding officers ultimately shot Camovic and took him into custody. Several officers were wounded during Camovic’s attack and robbery, including Officer 2 who was shot in the hand.
During his attack on the police officers, Camovic repeatedly shouted “Allahu Akbar,” a common Arabic phrase meaning “God is the greatest,” that has been used by perpetrators of violent jihadist terror attacks during the commission of violent attacks. The government’s investigation has revealed that, prior to the attack, Camovic possessed a significant volume of radical jihadist propaganda.
The charges in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty.
If convicted, Camovic faces a maximum sentence of life in prison.
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: 20
Brooklyn, New YorkE.D.N.Y. Docket No. 20-CR-326 (RPK)
Bosnian National Charged with Robbery and Firearms Offenses in Connection with Attack on New York City Police OfficersRead the Press Release
An indictment was unsealed today in federal court in Brooklyn charging Dzenan Camovic with robbery and firearms offenses for his June 3, 2020, knife and firearm attack on multiple New York City Police Department (NYPD) police officers in Brooklyn. As set forth in the court filings, the defendant, a Bosnian national in the United States illegally, was motivated to attack the officers because of his interest in and support for violent Islamist extremism. The defendant is currently in state custody and is scheduled to be arraigned at a later date.
The indictment charges Camovic with Hobbs Act robbery, using and discharging a firearm during that robbery, theft of a firearm that moved in interstate commerce and unlawful possession of a firearm as an illegal alien.
William P. Barr, Attorney General; Seth D. DuCharme, Acting U.S. Attorney for the Eastern District of New York, Christopher A. Wray, Director, Federal Bureau of Investigation (FBI); William F. Sweeney, Jr., Assistant Director-in-Charge, FBI, New York Field Office, and Dermot F. Shea, Commissioner, New York City Police Department (NYPD), announced the charges.
“Dzenan Camovic, an illegal alien and Bosnian national, is alleged to have used the cover of chaos during recent civil unrest in New York City to launch a premeditated and cowardly ambush against two New York City Police officers, brutally slashing one with a knife, stealing his weapon and opening fire, and injuring several responding officers,” said William P. Barr, U.S. Attorney General. “We know that Camovic repeatedly yelled, ‘Allahu Akbar’ during his attack. We know that he possessed a significant volume of materials that demonstrates his interest in and support for violent Islamist extremism, including materials related to the Islamic State of Iraq and al-Sham (ISIS). But the defendant’s access to the dark web and his use of encrypted communication platforms have created evidentiary roadblocks to fully learning his plans and potential co-conspirators. This is the second violent Islamist extremist attack on our land in the last nine months where the attacker used encrypted technology that can help cover his tracks and mask his communications. If not for the heroism and bravery of the responding NYPD officers who returned fire and took the assailant down early in the attack, untold additional officers and innocents could have been killed or injured.”
“As we have alleged in the indictment and set forth in related filings, just before midnight on June 3, 2020, the defendant launched a surprise attack on police officers standing post on the streets of Brooklyn, nearly ending their lives. After stabbing a police officer in the neck, the defendant ripped a 9mm service pistol away from an officer and shot at the officers while perversely invoking religion,” stated Acting U.S. Attorney DuCharme. “Despite engaging in technical tradecraft that covered some of his tracks, this defendant cannot escape the reach of the investigators and prosecutors who are committed to making sure that he faces justice for his extremely serious crimes.” Mr. DuCharme expressed his grateful appreciation to the New York Joint Terrorism Task Force as well as the Kings County District Attorney’s Office for their outstanding work.
“Two New York City police officers, who swore an oath to protect and serve, were heinously ambushed in the line of duty at the hands of Dzenan Camovic as alleged in today’s indictment,” stated FBI Director Wray. “As fellow Americans were exercising their rights to demonstrate, these brave law enforcement officers were brutally attacked to further a violent agenda associated with ISIS and al-Qaeda in the Arabian Peninsula. This case demonstrates that the FBI remains steadfast in our fight to protect the U.S. from extremists who wish to harm our citizens and fellow law enforcement officers.”
“Several days into protests that erupted in New York City and throughout the country, we allege Dzenan Camovic, motivated by ISIS-inspired ideology, ambushed three NYPD officers on the streets of Brooklyn and caused serious injury to those officers. As he commenced his attack, the NYPD officers were doing what the citizens of our city ask them to do every day - to stand watch and protect their fellow New Yorkers. Mr. Camovic's alleged behavior has no place in our community. His assault on the officers was an attack against the entire New York City community. Our society has never tolerated this type of behavior, and today's federal charges will ensure Mr. Camovic isn't a threat to society again,” stated FBI Assistant Director-in-Charge Sweeney.
“Dzenan Camovic, as outlined in the indictment, was a consumer of terrorist propaganda and calls for violence by groups like al-Qaida and ISIS. His premeditated ambush of two New York City police officers can never be accepted. As the investigation continues into his motives, these significant federal charges reinforce the notion that an attack against police officers is an attack against society,” stated NYPD Commissioner Shea.
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, the defendant allegedly carried out his attack on NYPD police officers who were assigned to an anti-looting post near the intersection of Flatbush and Church Avenues in Brooklyn, New York. At approximately 11:30 p.m., Camovic walked past two uniformed police officers on foot patrol and appeared to crouch for several minutes watching them. Security footage shows that 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 the first officer (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 had responded to the scene. Responding officers ultimately shot Camovic and took him into custody. Several officers were wounded during Camovic’s attack and robbery, including Officer 2 who was shot in the hand.
During his attack on the police officers, Camovic repeatedly shouted “Allahu Akbar,” a common Arabic phrase meaning “God is the greatest,” that has been used by perpetrators of violent jihadist terror attacks during the commission of violent attacks. The government’s investigation has revealed that, prior to the attack, Camovic possessed a significant volume of radical jihadist propaganda.
The charges in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty.
If convicted, Camovic faces a maximum sentence of life in prison.
The government’s case is being handled by the Office’s National Security and Cybercrime Section. Assistant U.S. Attorneys Craig R. Heeren, Artie McConnell and Josh Hafetz are in charge of the prosecution.
Former Queens Cardiologist Settles Civil Fraud AllegationsRead the Press Release
Ghanshyam Bhambhani, a former Queens cardiologist, will pay a total of $2 million to settle civil claims that he paid kickbacks to other physicians for referrals of patients insured by Medicare, Medicaid and the Federal Employees’ Health Benefits Program. Under the terms of the settlement, Bhambhani will pay the United States $1,370,294.50. In addition, he will pay the State of New York $629,705.50.
Seth D. DuCharme, Acting United States Attorney for the Eastern District of New York, William F. Sweeney Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Norbert E. Vint, Deputy Inspector General Performing the Duties of the Inspector General for the Office of Personnel Management (OPM-OIG), announced the settlement.
An investigation by the Office, the FBI and OPM-OIG revealed that, from 2010 through 2017, Bhambhani paid other doctors compensation disguised as rent for patient referrals in violation of the Anti-Kickback Statute and the False Claims Act. The investigation also revealed that Bhambhani falsified records to justify cardiac procedures. Bhambhani admitted engaging in this conduct and has agreed to cooperate with the Government.
“Paying kickbacks for patient referrals erodes the integrity of our healthcare system and costs taxpayers precious dollars. Doctors must put patients first, not treat them like commodities unscrupulously paid for with government funds,” stated Acting United States Attorney DuCharme. Mr. DuCharme expressed his grateful appreciation to the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG), and the New York State Attorney General for their assistance with the case.
“The OPM-OIG has zero tolerance for fraud against the Federal Employees Health Benefits Program (FEHBP). Submitting false claims for services that are not medically necessary and creating false documentation to justify procedure undermines the FEHBP, wastes taxpayer dollars, and increases the cost of medical care for us all,” stated OPM-OIG Deputy Inspector General Vint. “This settlement is a result of the hard work of our investigative staff and our partners at the U.S. Attorney’s Office, EDNY, FBI, HHS OIG, and the New York State Attorney General’s office.”
The agreement resolves a lawsuit originally brought by a whistleblower under the qui tam, or whistleblower, provisions of the False Claims Act, captioned United States ex rel. FNU LNU LLC v. New York Cardiology P.C., et al., Civil No. 14-4581 (EDNY). The False Claims Act permits private citizens with knowledge of fraud against the government to bring a lawsuit on behalf of the United States and to share in the recovery.
In 2018, Bhambhani surrendered his medical license after pleading guilty in the Eastern District of New York to one count of conspiracy to pay healthcare kickbacks. He was sentenced to 34 months in prison, three years’ supervised release and ordered to pay $217,364.83 in criminal restitution and $1,080,000 in criminal forfeiture.
The government’s case was handled by Assistant U.S. Attorney Lisa Kutlin of the Office’s Civil Division, with assistance from Affirmative Civil Enforcement Auditor Michael Gambrell.
New York Hospice Provider Settles Civil Healthcare Fraud AllegationsRead the Press Release
Metropolitan Jewish Health System Hospice and Palliative Care (“MJHS Hospice”), a New York nonprofit hospice provider, has agreed to pay the United States $4,850,000 to resolve civil allegations that it billed Medicare and Medicaid for services rendered to hospice patients at heightened levels of care for which the patients did not qualify, in violation of the False Claims Act, and has agreed to pay the State of New York $375,000.
Seth D. DuCharme, Acting United States Attorney for the Eastern District of New York, announced the settlement. Mr. DuCharme thanked the Office of the Inspector General of the U.S. Department of Health and Human Services and the New York State Attorney General for their assistance in the investigation.
The settlement resolves allegations that MJHS Hospice knowingly billed Medicare and Medicaid for unnecessary levels of hospice care to patients. Medicare’s and Medicaid’s hospice benefits are available for patients who elect palliative treatment (medical care focused on the patient’s relief from pain and stress) for a terminal illness.
Under the Medicare and Medicaid programs, a hospice provider may seek payment for several levels of care, including heightened levels known as “CHC” (continuous home care services) and “GIP” (general inpatient services). To receive reimbursement for CHC, a hospice provider must show that a patient is experiencing acute medical symptoms. For a hospice provider to obtain reimbursement for GIP, a patient must need pain control, or acute or chronic symptom management, which must be managed in a hospital. After an extensive investigation, the United States determined that from 2011-2015, MJHS falsely claimed that some of its patients required CHC and, in 2012, falsely claimed that some patients required GIP.
“It is vital that the terminally ill have appropriate access to hospice care, including levels of care that are available under Medicare and Medicaid. This Office recognizes the importance of preserving limited federal health care funds for this purpose, and to holding health care providers accountable when they seek reimbursement for care that is not reasonable and necessary,” stated Acting United States Attorney DuCharme.
The allegations were brought to the government’s attention through the filing of a complaint 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 and there has been no finding of liability by a court.
The United States’ case was handled by Assistant U.S. Attorney Lisa D. Kutlin of the Office’s Civil Division, with assistance from Affirmative Civil Enforcement Auditor Michael Gambrell.
E.D.N.Y. Docket No. 14-CV-4201 (FB)
“Lottery Lawyer” and Three Co-Conspirators Indicted in $107 Million Scheme to Defraud Lottery-Winning ClientsRead the Press Release
An indictment was unsealed earlier today in federal court in Brooklyn charging attorney Jason Kurland, Christopher Chierchio, Francis Smookler, a former securities broker, and Frangesco Russo with wire fraud, wire fraud conspiracy, money laundering and money laundering conspiracy in connection with a scheme to defraud Kurland’s clients that resulted in $107 million in losses. In addition, Kurland was charged with honest services fraud for his role in the scheme, and Russo and Smookler are charged with extortionate extension and collection of credit for threatening to kill an individual and his family for failure to repay a usurious loan.
The defendants were arrested today and will be arraigned this afternoon via teleconference before United States Magistrate Judge Lois Bloom.
Seth D. DuCharme, Acting United States Attorney for the Eastern District of New York, and William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the arrests and charges.
“Defendant Kurland allegedly violated the law and his oath as a lawyer when he allowed co-conspirators to pillage his clients’ bank accounts for their own enrichment,” stated Acting United States Attorney DuCharme. “In addition, Russo and Smookler allegedly threatened to torture an individual’s wife and children. The defendants callously thought they could line their pockets with lottery winnings without consequence, but today their luck ran out.”
“Lottery winners can't believe their luck when they win millions of dollars, and the men we arrested this morning allegedly used that euphoric feeling to their advantage,” stated FBI Assistant Director-in-Charge Sweeney. “The FBI New York discovered how these victims were persuaded to put large chunks of their cash into investments that benefited the defendants. Rather than try their luck at the lottery, these men resorted to defrauding the victims to get rich, but their gamble didn't pay off.”
The Scheme to Defraud the Lottery Victims
As set forth in court filings, Kurland is a self-dubbed “Lottery Lawyer” purporting to represent dozens of lottery winners throughout the country with total winnings of approximately $3 billion. One of the winners won the $1.5 billion Mega Millions lottery, another won the $245 million Powerball jackpot, and the third won the $150 million jackpot (together, the “Lottery Victims”). The Lottery Victims each paid Kurland and his law firm hundreds of thousands of dollars, in part so that he could advise them on how to safely invest their money. After gaining their trust with primarily traditional investments, Kurland steered his clients to invest in various entities and business deals controlled and directed by Russo, Smookler and Chierchio, and received kickbacks in return – which Kurland failed to disclose to his clients. The defendants then used the money from the Lottery Victims’ investments to keep their scheme going and to enrich themselves. A portion of these funds was funneled back to the Lottery Victims and falsely presented to them as “interest payments” on their investments, other funds went to Kurland as kickbacks, and millions of dollars were stolen to support the defendants’ lavish lifestyles – private jets, expensive vacations and luxury vehicles including two yachts. The funds that the defendants actually invested in various entities and deals were, in large part, eventually lost.
In intercepted calls cited in court documents, the defendants can be heard discussing their scheme, attempting to cover their tracks and expressing concern about what might happen to them if they were caught by law enforcement.
The Scheme to Extort Altieri
Russo’s and Smookler invested some of the Lottery Victims’ money with Gregory Altieri, a jewelry merchant, and then extended him a $250,000 “street loan.” Conversations recorded during the government’s investigation revealed that Russo and Smookler expected to be repaid over $400,000 for the $250,000 loan, and the threats Russo and Smookler made to Altieri in their attempt to collect it. Russo informed Altieri that he had a “few tactical shotguns . . . with lasers,” and Smookler told Altieri that if he did not fully repay the loan, “it’s just going to be unbelievable.” Russo compared himself to the mob-affiliated character in “Uncut Gems,” a movie that ends with the indebted diamond dealer shot dead. On another call, Russo told Altieri, “They’re gonna pop your head off in front of your f------ kids. This guy has no clue what he’s getting into.” Smookler told Altieri, “You watch my man, you f-----d me, now watch what I am gonna do to you, I’m coming brother. Full f-----g steam ahead.”
Russo and Smookler also threatened to harm Altieri’s family if Altieri did not repay the loan. Smookler told Altieri that, “[W]e are gonna find your wife today. That’s happening.” Russo informed Altieri that the people coming for him are “going to make you watch as they rip your son’s teeth out of his mouth, watch, they’re going to do worse things to your wife.”
The government has taken steps to recover funds stolen in connection with the charged scheme to defraud the Lottery Victims, including executing warrants to seize 13 bank accounts associated with the defendants’ scheme, and placing liens on three properties that Smookler and Russo allegedly purchased and/or renovated with stolen funds.
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 Business & Securities Fraud Section. Assistant United States Attorneys Andrey Spektor and Lindsay K. Gerdes are in charge of the prosecution, assisted by Assistant United States Attorney Brian D. Morris of the Office’s Asset Forfeiture Unit and by a Special Agent of the Office’s Business & Securities Fraud Section.
The Defendants:
CHRISTOPHER CHIERCHIO
Age: 52
Staten Island, NYJASON KURLAND
Age: 46
Dix Hills, NYFRANGESCO RUSSO
Age: 38
Roslyn, NYFRANCIS SMOOKLER
Age: 45
Oyster Bay, NYE.D.N.Y. Docket No. 20-CR-306 (NGG)
Two Queens Men Charged with the Murder of RUN-DMC D.J. Jason Mizell, also Known as “Jam Master Jay”Read the Press Release
A 10-count indictment was unsealed today in the Eastern District of New York charging Ronald Washington and Karl Jordan, Jr., with the October 30, 2002 murder of Jason Mizell, also known as “Jam Master Jay,” a member of the famed hip hop group Run-DMC. Each defendant is charged with murder while engaged in narcotics trafficking and firearm-related murder for the fatal shooting of Mizell inside the victim’s recording studio in Hollis, Queens. Jordan is charged with several additional narcotics distribution counts. Jordan was arrested yesterday and will be arraigned this afternoon via videoconference by United States Magistrate Judge Lois Bloom. Washington is in federal custody and will be arraigned at a later date.
Seth D. DuCharme, Acting United States Attorney for the Eastern District of New York, Dermot F. Shea, Commissioner, New York City Police Department (NYPD), Daryl McCormick, Acting Special Agent-in-Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and William F. Sweeney Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the arrests and indictment.
“The defendants allegedly carried out the cold-blooded murder of Jason Mizell, a brazen act that has finally caught up with them thanks to the dedicated detectives, agents and prosecutors who never gave up on this case,” stated Acting United States Attorney DuCharme. “The charges announced today begin to provide a measure of justice to the family and friends of the victim, and make clear that the rule of law will be upheld, whether that takes days, months or decades.”
“The gunshots that rang out in a recording studio in Queens nearly 18 years ago, taking this pioneering rap artist’s life, have been answered. Today’s indictment shows that no amount of time passed can erase the commitment of our NYPD detectives, federal law enforcement partners and prosecutors in the US Attorney’s Office for the Eastern District, to the pursuit of justice,” stated NYPD Commissioner Shea.
“The ATF New York Field Division never believed this case was unsolvable,” stated ATF Acting Special Agent-in-Charge McCormick. “Working tirelessly alongside the NYPD Cold Case Squad, we were determined to bring justice for the Mizell family and see these killers held accountable. For nearly eighteen years, one of these alleged perpetrators walked freely, thinking he’d gotten away with murder. But today, thanks to the unwavering efforts of the investigators and prosecutors, two individuals will answer for their crimes.”
As alleged in court filings, on October 30, 2002, Mizell was present at his recording studio, 24/7 Studio, located on Merrick Boulevard in Jamaica, Queens. At approximately 7:30 p.m., Washington and Jordan, armed with firearms, entered the studio. Washington pointed his firearm at an individual located inside the studio and demanded that the person lie on the floor. Jordan approached Mizell, pointed his firearm at him, and fired two shots at close range, striking the victim once in the head, killing him. The second shot struck another individual in the leg.
The investigation revealed that the motive for the killing resulted from Mizell’s previous acquisition of approximately 10 kilograms of cocaine from a narcotics supplier in the Midwest. The cocaine was allegedly intended to be distributed in Maryland by Washington, Jordan and other co-conspirators. Mizell had recently informed Washington that the defendant would not be involved in distributing the narcotics in Maryland, which precipitated the murder conspiracy.
In addition to the murder, Jordan is also charged with one count of conspiracy to distribute cocaine and seven counts of cocaine distribution.
The charges in the indictment are allegations, and the defendants are presumed innocent unless and until proven guilty. If convicted, each defendant faces a minimum of 20 years’ imprisonment and a maximum term of life imprisonment, or the death penalty.
Assistant United States Attorneys Artie McConnell and Mark E. Misorek are in charge of the prosecution.
The Defendants:
KARL JORDAN, JR. (also known as “Little D” and “Noid”)
Age: 36
Hollis, QueensRONALD WASHINGTON (also known as “Tinard”)
Age: 56
Hollis, QueensE.D.N.Y. Docket No. 20-CR-305 (LDH)
MS-13 Gang Member Arrested in El Salvador for Murder on Long IslandRead the Press Release
José Jonathan Guevara-Castro, also known as “Suspechoso” (“Guevara-Castro”), an alleged member of the violent transnational criminal organization La Mara Salvatrucha, also known as the “MS-13,” and a fugitive from justice, was arrested on August 13, 2020 in Acajutla, Sonsonate, El Salvador.
Seth D. DuCharme, Acting United States Attorney for the Eastern District of New York; John J. Durham, Director, Joint Task Force Vulcan (JTFV); and William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the arrest.
“Guevara’s arrest more than 2,000 miles away from Long Island where he allegedly participated in the brutal murder of a young man more than four years ago, is a testament to the commitment of this Office and our law enforcement partners to bringing members of the MS-13 gang to justice for their crimes,” stated Acting United States Attorney DuCharme. “There is no place to hide, here or abroad, and neither distance nor the passage of time will offer any safe harbor to criminals from our mission to eradicate violent gangs from the Eastern District of New York.”
Mr. DuCharme expressed his grateful appreciation to the investigators and analysts of El Salvador’s Policía Nacional Civil (PNC) Centro Antipandillas Transnacional (CAT) unit, who are assigned to the Transnational Anti-Gang (TAG) Unit, a task force of Salvadoran police officers receiving financial and technical assistance from the FBI and State Department Bureau of International Narcotics and Law Enforcement, for their outstanding assistance and collaboration in locating and apprehending this fugitive. Additionally, Mr. DuCharme expressed sincere thanks to the FBI’s Long Island Gang Task Force, the Drug Enforcement Administration (DEA), the Nassau County Police Department (NCPD), and the Nassau County District Attorney’s Office (NCDAO), as well as to the members of the FBI Baltimore Field Office/Annapolis Resident Agency, the International Criminal Police Organization (INTERPOL), and the Justice Department’s Office of International Affairs (OIA), for their partnership in this case.
Guevara-Castro is charged in a 24-count indictment, along with seven other MS-13 members, with racketeering offenses, murder and narcotics trafficking. In particular, Guevara-Castro is charged with participating in the murder of 20-year-old Kerin Pineda, who was believed to be a member of the 18th Street gang, one of MS-13’s principal rivals. Pineda’s murder was committed as a joint venture between two different subgroups, or “cliques,” of the MS-13 operating on Long Island: the Hollywood Locos Salvatruchas (“Hollywood”) clique, of which Guevara-Castro was an alleged member; and the Sailors Locos Salvatruchas Westside (“Sailors”) clique. On May 21, 2016, MS-13 members, armed with machetes, lured Pineda to a secluded wooded area near the Merrick-Freeport border, where he was surrounded and violently attacked. Pineda’s machete-mutilated corpse was then buried in a hole that had been dug the day before. Pineda’s corpse was recovered more than one year later.
The charges in the indictment are allegations, and the defendant and his co-defendants are presumed innocent unless and until proven guilty. If convicted, Guevara-Castro faces up to life in prison.
This 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 and Honduras, but the gang has thousands of members across the United States, comprised primarily of immigrants from Central America. With numerous branches, or “cliques,” the MS-13 is the largest and most violent street gang 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, comprising agents and officers of the FBI, the NCPD, the Suffolk County Police Department, the Nassau County Sheriff’s Department, the Suffolk County Sheriff’s Department, the Suffolk County Probation 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.
This investigation was carried out in partnership with Joint Task Force Vulcan (JTFV). In August 2019, Attorney General Barr created JTFV to carry out the recommendations of the MS-13 subcommittee formed under the Attorney General’s Transnational Organized Crime Task Force, which was the result of President Trump’s February 2017 Executive Order directing the Departments of Justice, State, and Homeland Security, and the Office of the Director of National Intelligence to coordinate a whole-of-government approach to dismantle transnational criminal organizations, such as MS-13, and restore safety for the American people. The principal purpose of JTFV is to coordinate and lead the efforts of the Justice Department and U.S. law enforcement agencies against MS-13 in order to dismantle the group.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorneys Paul G. Scotti, Justina L. Geraci and Megan E. Farrell are in charge of the prosecution, with assistance from Assistant District Attorney Jared Rosenblatt of the Nassau County District Attorney’s Office.
The Defendant:
JOSE JONATHAN GUEVARA-CASTRO (also known as “Suspechoso”)
Age: 25
Acajutla, Sonsonate, El Salvador; formerly of Roosevelt, New York, and Annapolis, MarylandE.D.N.Y. Docket No. 20-CR-251 (JFB)
Queens Man Charged with Arson of NYPD VehicleRead the Press Release
A criminal complaint was unsealed today in federal court in Brooklyn charging Sam Resto with setting on fire a marked New York City Police Department (NYPD) van. Resto was arrested yesterday and will make his initial appearance this afternoon before United States Magistrate Judge Peggy Kuo.
Seth D. DuCharme, Acting United States Attorney for the Eastern District of New York, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Dermot F. Shea, NYPD Commissioner, announced the arrest and charges.
“As alleged, Resto, wearing a mask and gloves and carrying a backpack containing the tools of his destructive trade, intentionally set fire to an NYPD van parked on a city street lined with residential buildings and vehicles,” stated Acting United States Attorney DuCharme. “This Office will vigorously prosecute criminals whose actions endanger the community, police officers and first responders.”
“When Resto set an NYPD van ablaze last month, as we allege today, his actions not only destroyed essential public safety equipment paid for by the people of New York City, he placed the personal safety of those living in the neighborhood and their private property into harm’s way. Deliberate criminal activity like the type alleged today puts both first responders and private citizens at risk, it is an affront to everything this city is supposed to be about. Today’s federal charges are the community’s message back to Mr. Resto and others who may choose to engage in this type of criminal behavior – we will not tolerate crimes of this magnitude and the consequences will be significant,” stated FBI Assistant Director-in-Charge Sweeney.
“Today’s criminal complaint not only seeks justice for the alleged torching of an NYPD van parked in a busy Manhattan neighborhood but answers for a crime that put innocent New Yorkers in considerable danger. I thank our NYPD detectives, the US Attorney for the Eastern District of New York, and all of our law enforcement partners for their tireless work in ensuring our common mission of protecting life and public safety,” stated NYPD Commissioner Shea.
According to the complaint, in the early morning hours of July 29, 2020, Resto was captured on video setting ablaze an unoccupied NYPD van parked on West 83rd Street near Columbus Avenue in Manhattan. On the video, Resto approached the van, smashed the window with a blunt object, poured gasoline into the interior and set the vehicle on fire before fleeing east towards Central Park. The NYPD subsequently recovered a backpack in the park belonging to Resto containing, among other things, clothing similar to items Resto was seen wearing earlier that morning, a Guy Fawkes mask, a red jerry can that smelled of gasoline, a hammer and lighters.
The charges in the complaint are allegations, and the defendant is presumed innocent unless and until proven guilty. If convicted, Resto faces up to 20 years’ imprisonment.
The government’s case is being handled by the Office’s National Security and Cybercrime Section. Assistant United States Attorneys Francisco J. Navarro, Michael T. Keilty and Sara K. Winik are in charge of the prosecution.
The Defendant:
SAM RESTO
Age: 29
Queens, New YorkE.D.N.Y. Docket No. 20-MJ-665
Village of Rockville Centre Agrees to Settle Federal Complaint by Complying with Clean Air Act RequirementsRead the Press Release
Seth D. DuCharme, Acting United States Attorney for the Eastern District of New York, and Peter D. Lopez, Regional Administrator of the United States Environmental Protection Agency, Region 2 (EPA), announced today that the United States filed suit under the Clean Air Act (CAA) against the Village of Rockville Centre (“the Village”) to address its failure to comply with federally-enforceable emissions limits for particulate matter (PM) and nitrogen oxide (NOx). The Village operates a 33 megawatt municipal power plant (the “Power Plant”) that provides electric power to its residents, in part, using diesel engines. The Village operates the Power Plant primarily during the summer to meet high electricity demands.
The parties also agreed to enter into a Consent Judgment that requires the Village to retire high-emission engines, and to institute operational practices and technologies to reduce further the PM and NOx emissions of the Power Plant. The settlement also requires the Village to pay a civil penalty of $110,000 and perform other injunctive relief that will bring its Power Plant into compliance with the CAA.
The lawsuit and Consent Judgment were filed in the United States District Court for the Eastern District of New York, in Central Islip, New York. Following a 30-day public comment period, the United States will review any comments and, if appropriate, request the District Court to enter and approve the Consent Judgment.
“The United States brought this action to ensure that the Village of Rockville Centre meets its obligation to protect our air quality by instituting stronger emission control practices at its power plant,” stated Acting United States Attorney DuCharme. “The settlement enforces specific and appropriate emission limits that are critical to mitigating human exposure to particulate matter, which is potentially harmful to our health. This Office will vigorously enforce the Clean Air Act against parties who illegally emit air pollutants and compromise the safety of our community.”
“Emission limits on particulate matter and nitrogen oxides exist to help reduce conditions that lead to the formation of dangerous soot and smog. Studies show that in excess, both of these pollutants are linked to a range of respiratory ailments and premature death,” stated EPA Regional Administrator Lopez. “EPA is committed to resolve violations of the Clean Air Act. By fully implementing the actions in the agreement, the Village can protect people that live, work and visit this community.”
The CAA was passed by Congress in 1970 to protect public health and the environment through the regulation of air emissions from both stationary and mobile sources. The law requires the EPA to establish national ambient air quality standards and imposes limits on air pollutant emissions.
Since at least 2009, the Power Plant has exceeded PM and NOx limits under the CAA. As a result of the United States’ enforcement efforts preceding this settlement, the Power Plant’s exceedances of PM ceased in December 2018, by which time the Village had instituted effective operational controls to reduce its PM emissions. However, the Village continues to violate the NOx limits, and the Consent Judgment requires the Village to comply with the NOx limits by December 31, 2021.
As part of the settlement, the Village has permanently retired its three most polluting engines. Further, the Village will reclassify certain engines to limit their use, which will produce significant emissions reductions. The Village will also increase its capacity to import electricity, thereby reducing the load on its Power Plant and associated air emissions. Finally, the Consent Judgment requires the Village to install and operate a continuous emissions monitoring system on all non-emergency engines and implement periodic engine tune ups. These requirements will protect local air quality while enforcing the Village’s compliance with PM and NOx limits.
The negotiations and settlement were handled by Assistant U.S. Attorneys James R. Cho and Matthew Silverman and paralegal Loan Nguyen of the U.S. Attorney’s Office for the Eastern District of New York, working with Liliana Villatora, Denise Leong, Amanda Prentice and Sara Froikin of the Regional Counsel’s Office, U.S. EPA Region 2, Gaetano LaVigna, Chief, Stationary Source Compliance Section, Air Compliance Branch, U.S. EPA Region 2 and Richard Kan, also with the Air Compliance Branch.
10 Individuals Charged with Possessing Firearms in Brooklyn over Two Days in AugustRead the Press Release
Ten individuals were separately charged by complaint or indictment during the past week in the Eastern District of New York with being a felon in possession of a firearm.
Seth D. DuCharme, Acting United States Attorney for the Eastern District of New York, announced the arrests and charges.
“The one tried and true way to reduce the rapid spike in gun violence we’ve experienced in Brooklyn this summer is to take the guns out of the hands of repeat offenders and take those offenders off of our streets,” stated Acting U.S. Attorney DuCharme. “This is another example of the great results we’ve achieved with our Project Safe Neighborhoods program and I commend the outstanding work by this Office’s prosecutors, members of the New York City Police Department (NYPD), the FBI-NYPD New York Metro Safe Streets Task Force and the New York State Department of Parole for sending a clear message to convicted criminals that carrying a gun also carries serious federal consequences.”
As alleged, the following defendants, having previously been convicted in a court of a crime punishable by a term of imprisonment exceeding one year, intentionally possessed a firearm:
DASHAWN ANDREWS
On August 6, 2020 Andrews was indicted for possessing a Taurus, model PT-22, .22LR caliber pistol and ammunition on Livonia Avenue near Pennsylvania Avenue in Brooklyn.
PAOLO ALFARO BARBER
On August 6, 2020, in front of 2501 Newkirk Avenue in Brooklyn, NYPD Officers observed an L-shaped bulge in a bag hanging from Alfaro Barber’s neck. When the bag was searched, officers found a Taurus .38 caliber revolver loaded with six rounds of .38 caliber ammunition.
TERRENCE BROWN
On August 6, 2020, Brown was indicted for possessing a Taurus PT 111, 9mm pistol found in his apartment at 419 Blake Ave. in Brooklyn during a search by New York State Parole Officers and NYPD Officers.
JAHQUEL GIDDEON
On August 6, 2020, Giddeon was indicted for possessing a loaded Ruger 380 semi-automatic pistol found under a mattress during a search of his apartment on Rockaway Parkway by New York State Parole Officers.
MACYE MCCALL
On August 6, 2020, McCall was indicted for possessing a Taurus, Model 85, .38 Special caliber revolver. NYPD Officers discovered the gun after they pulled over a Range Rover in which McCall was a passenger for driving the wrong way down a one way street off Sutter Avenue in Brooklyn.
TONY MCQUEEN
On August 6, 2020, McQueen was arrested for possessing a Smith & Wesson Model M&P 9C caliber 9mm pistol loaded with 13 rounds of ammunition in a vehicle where he was found intoxicated and passed out behind the wheel at the intersection of Atlantic Avenue and Boyland Street in Brooklyn.
AVERY MILLINGTON
On August 6, 2020, Millington was indicted for possession of Charter Arms Undercover .38 Special Pistol loaded with five rounds of .38 caliber ammunition after he was observed driving a Hyundai the wrong way on Bristol Street near Newport Avenue in Brooklyn.
KEENEN NURSE
On August 4, 2020, Nurse was arrested on a complaint charging him with possessing a loaded Jimenez Arms .380 caliber semi-automatic pistol hidden under the stairwell in a residential building on Eastern Parkway in Brooklyn. Nurse’s DNA was found on the firearm.
MARVIN PICKETT
On August 6, 2020, Pickett was arrested on an indictment charging him with possessing a Taurus .380 caliber pistol while allegedly driving drunk and crashing into a Citibike stand at Nassau and Navy Streets in downtown Brooklyn on March 28, 2020.
AARON SWABY
On August 6, 2020, Swaby was indicted for possessing a Smith & Wesson, Model SD40VE, .40 caliber semi-automatic pistol inside a vehicle stopped by NYPD Officers for a traffic infraction on Surf Avenue in Brooklyn.
These cases are 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. Attorney General William Barr has enhanced PSN as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorneys’ Offices to work in partnership with federal, state, local and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime.
The charges in the complaints and indictments are allegations, and the defendants are presumed innocent unless and until proven guilty. If convicted, the defendants face up to 10 years’ imprisonment.
The government’s cases are being handled by the Office’s Criminal Division, General Crimes Section and Organized Crime and Gangs Section.
The Defendants:
DASHAWN ANDREWS
Age: 29
Brooklyn, New YorkE.D.N.Y. Docket No. 20-CR-285 (ILG)
PAOLO ALFARO BARBER
Age: 29
Brooklyn, New YorkE.D.N.Y. Docket No. 20-MJ-642
TERRENCE BROWN
Age: 24
Brooklyn, New YorkE.D.N.Y. Docket No. 20-CR-295 (WFK)
JAHQUEL GIDDEON
Age: 20
Brooklyn, New YorkE.D.N.Y. Docket No. 20-CR-289 (MKB)
MACYE MCCALL (also known as “Gunplay”)
Age: 27
Bronx, New YorkE.D.N.Y. Docket No. 20-CR-290 (ARR)
TONY MCQUEEN
Age: 32
Brooklyn, New YorkE.D.N.Y. Docket No. 20-MJ-643
AVERY MILLINGTON
Age: 25
Brooklyn, New YorkE.D.N.Y. Docket No. 20-CR-288 (LDH)
KEENEN NURSE
Age: 29
Brooklyn, New YorkE.D.N.Y. Docket No. 20-MJ-602
MARVIN PICKETT
Age: 38
Brooklyn, New YorkE.D.N.Y. Docket No. 20-CR-255 (BMC)
AARON SWABY
Age: 27
Brooklyn, New YorkE.D.N.Y. Docket No. 20-CR-287 (WFK)
Three Individuals Arrested for Separate Schemes to Harass, Threaten, Intimidate and Bribe Alleged R. Kelly VictimsRead the Press Release
Three separate criminal complaints were unsealed yesterday in federal court in Brooklyn charging defendants Richard Arline, Jr., Donnell Russell and Michael Williams, respectively, with crimes relating to their efforts to harass, intimidate, threaten or corruptly influence individuals named as alleged victims in the racketeering case against Robert Sylvester Kelly, also known as “R. Kelly,” currently pending in the Eastern District of New York (the Kelly case).
Arline, Jr. is charged with attempting to corruptly persuade the testimony of an alleged victim in the Kelly case, identified in the complaint as “Jane Doe,” and engaging in misleading conduct towards the victim, with intent to influence, delay and prevent her testimony in the Kelly case, as well as corruptly offering something of value to the victim, with the intent to influence her testimony as a witness upon a trial, hearing and other proceeding. Arline, Jr. was arrested earlier today in Dolton, Illinois, and his initial appearance took place yesterday afternoon before United States Magistrate Judge Young B. Kim at the federal courthouse in Chicago, Illinois.
A second criminal complaint charges Russell with using the mail, the internet and cellular telephones to attempt to cause emotional distress to another individual identified in the complaint as “Jane Doe,” an alleged victim in the Kelly case, as well as Jane Doe’s mother, with the intent to harass and intimidate Jane Doe and her mother. Russell’s initial appearance will take place before a United States Magistrate Judge in the Eastern District of New York at a date to be determined in the near future.
A third criminal complaint charges Williams with using and attempting to use intimidation and threats against an alleged victim in the Kelly case, with intent to influence, delay and prevent her testimony in the Kelly case. The complaint also charges Williams with maliciously damaging and destroying a vehicle by means of fire and an explosive. Williams was arrested yesterday in Pompano Beach, Florida, and his initial appearance is scheduled for this morning at the federal courthouse in Fort Lauderdale, Florida.
Seth D. DuCharme, Acting United States Attorney for the Eastern District of New York, Peter C. Fitzhugh, Special Agent-in-Charge, Homeland Security Investigations (HSI), New York Field Office, and Dermot F. Shea, Commissioner, New York City Police Department (NYPD), announced the charges.
“The defendants are separately charged with engaging in multiple crimes that were intended to undermine and subvert the integrity of the criminal justice system and victimize the women who have come forward with serious allegations of criminal conduct against the defendant R. Kelly,” stated Acting United States Attorney DuCharme. “Efforts to illegally influence pending federal cases, whether through threats of violence, intimidation, damage to property, or payments to buy a potential witness’s silence, will not be tolerated.”
Mr. DuCharme expressed his grateful appreciation to the HSI Field Offices in Chicago, Illinois, Fort Lauderdale, Florida, Long Beach, California, and Tampa, Florida; the Bureau of Alcohol, Tobacco, Firearms and Explosives Field Offices in Savannah, Georgia, and Tampa, Florida; the Florida Bureau of Fire, Arson & Explosives Investigations; the Broward County Sheriff’s Office, Florida, the Lowndes County Sheriff’s Office, Florida, the Polk County Sheriff’s Office, Florida and the Valdosta Police Department, Georgia, for their assistance in these cases.
“These crimes shock the conscience. The men charged today allegedly have shown that there is no line they will not cross to help Kelly avoid the consequences of his alleged crimes—even if it means re-victimizing his accusers. These acts not only fly in the face of human decency, they insult the very rule of law. HSI will continue to bring the full force of our investigative powers to pursue those seeking to attack witnesses and pervert the cause of justice. To the victims of these and other crimes: we stand with you. We will meet your bravery with our resolve to keep you safe to tell your story,” stated HSI Special Agent-in-Charge Fitzhugh.
“The bribery, intimidation and violence alleged in these complaints reflects a nationwide pattern of criminality that further victimized civilian witnesses in a federal case. Such behavior can never be accepted and I commend the NYPD investigators, federal agents and prosecutors from the U.S. Attorney’s Office for the Eastern District of New York in bringing these charges,” stated NYPD Commissioner Shea.
The Arline, Jr. Complaint
As alleged, between January 9, 2020 and June 2020, Arline, Jr., a self-proclaimed longtime friend of Kelly, attempted to illegally influence the cooperation and testimony of an alleged victim in the Kelly case. After learning of Arline Jr.’s plan, the victim contacted law enforcement, and under the supervision of law enforcement authorities, continued to communicate with him. During a series of consensually recorded telephone calls, as well as in calls and texts captured pursuant to a judicially authorized wiretap, Arline, Jr. discussed a scheme in which the victim would receive compensation, including a proposed payment of $500,000, to keep her from cooperating with the government. During one of the recorded telephone calls, Arline, Jr. claimed that he had communicated with Kelly while Kelly was incarcerated via a three-way call with another individual.
The intercepted communications also include Arline, Jr. discussing plans to pay the victim “to be quiet,” explaining that “if I had a way to talk to Rob [Kelly], being next to him, and telling him what’s going on, without nobody listening to, no feds, nobody, he gonna pay her . . . off to be quiet” because “[s]he got too much. She got too much.”
The Russell Complaint
As alleged, between November 2018 and February 2020, Russell, a self-described manager, advisor and friend of Kelly, used the mail, telephones and the internet to harass and intimidate Jane Doe, an alleged victim in the Kelly case, and her mother after Jane Doe filed a civil lawsuit against R. Kelly. Specifically, Russell threatened to reveal sexually explicit photographs of Jane Doe and to publicly reveal her sexual history if she did not withdraw her lawsuit against Kelly and “cease her participation and association with the organizers” of a “negative campaign” against Kelly. In November 2018, Russell caused a letter with attachments purportedly written by Kelly to be mailed to Jane Doe’s Brooklyn-based lawyer at the time. The attachments included cropped nude photographs of Jane Doe with the following text: “the next two pictures have been cropped for the sake of not exposing her extremities to the world, yet!!!” In December 2018, Russell, using his alias “Colon Dunn,” sent a series of text messages to Jane Doe and her mother, which contained the same photographs of Jane Doe, and stating “Just a sample. We will seek criminal charges. You’ve been warned,” as well as “Publishing soon” and “[T]his is Colon.”
On January 3, 2019, Russell allegedly sent additional text messages to Jane Doe and her mother, stating, “Pull the plug or you will be exposed.” On January 6, 2019, Russell, using the Colon Dunn alias, created a Facebook Page named “Surviving Lies,” a play on the title of Lifetime’s “Surviving R Kelly” documentary, and posted screen shots of text messages between Kelly and Jane Doe, which contained the same sexually explicit photographs of Jane Doe. In late January 2020, Russell appeared on two live interviews with “vloggers” discussing Kelly’s legal troubles, which were streamed live on the internet via YouTube. Russell again displayed the same sexually explicit photographs of Jane Doe and broadcast them publicly over the internet.
The Williams Complaint
As alleged, on or about June 11, 2020, Williams, a relative of an individual who once served as a publicist for Kelly, set fire to an SUV parked outside a residence in Florida where an alleged victim in the Kelly case and others were staying. The vehicle, leased by the victim’s father, was heavily damaged. Fire investigators also detected an accelerant along the outside perimeter of the residence. Cell site records, surveillance footage, toll records and photographs, and Williams’ internet searches for the victim’s address, revealed that Williams had driven from Georgia to the Florida residence. Williams also performed internet queries about the detonation properties of fertilizer and diesel fuel, witness intimidation and witness tampering, and countries that do not have extradition with the United States.
The charges in the complaints 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 Elizabeth A. Geddes, Nadia I. Shihata and Maria Cruz Melendez are in charge of the prosecution.
The Defendants:
RICHARD ARLINE, JR.
Age: 31
Dolton, ILDONNELL RUSSELL, also known as “Don Russell” and “Colon Dunn”
Age: 45
Chicago, ILMICHAEL WILLIAMS
Age: 37
Valdosta, GAE.D.N.Y. Docket Nos: 20-MJ-239; 20-MJ-629; 20-MJ-630
Queens Man Pleads Guilty to Defrauding Pharmaceutical ManufacturerRead the Press Release
Earlier today, at the federal courthouse in Central Islip, Arkadiy Khaimov pleaded guilty before United States Magistrate Judge A. Kathleen Tomlinson to conspiring to commit mail and wire fraud by defrauding a pharmaceutical manufacturer of approximately $6.9 million by submitting fraudulent claims under the manufacturer’s Co-pay Coupon Program. As part of the plea, Khaimov agreed to forfeit approximately $489,000 as proceeds involved in the fraudulent scheme. When sentenced, Khaimov faces up to 20 years in prison.
Seth D. DuCharme, Acting United States Attorney for the Eastern District of New York, announced the guilty plea.
“With today’s guilty plea, Khaimov is held accountable for bilking a program designed to reduce the cost of prescription medicines so that he could line his own pockets with millions of dollars,” stated Acting United States Attorney DuCharme. “The defendant will now face the consequences of his fraudulent scheme.” Mr. DuCharme expressed his grateful appreciation to the Federal Bureau of Investigation, New York Field Office, United States Postal Inspection Service and Internal Revenue Service-Criminal Investigation for their exemplary work on the case.
The pharmaceutical manufacturer, referred to in the indictment as “John Doe Company 1,” established the Co-pay Program to reimburse pharmacies for dispensing a prescription medication. Between approximately February 2017 and July 2018, Khaimov and his co-conspirators submitted claims for approximately $6.9 million in reimbursements under the Co-pay Program for the medications that pharmacies operated by the defendant and his co-conspirators never actually dispensed. In some cases, Khaimov and his co-conspirators fraudulently used the credentials of a Nassau County-based physician to submit the false claims.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorneys Bradley T. King, Madeline O’Connor and Department of Justice Trial Attorney Andrew Estes are in charge of the prosecution.
The Defendant:
ARKADIY KHAIMOV (also known as “Alex”)
Age: 37
Forest Hills, QueensE.D.N.Y. Docket No. 20-CR-267 (SJF)
Two Members of Brooklyn-Based Gang Charged with Possessing a Firearm Used in a ShootingRead the Press Release
A two-count indictment was unsealed today in federal court in Brooklyn charging Davon Brown and Christian Williams, members of the violent street gang Folk Nation Gangster Disciples, with being felons in possession of a firearm in connection with their involvement in a March 14, 2020 shooting that wounded a man. The defendants were arrested this morning and will make their initial appearance this afternoon via videoconference before United States Magistrate Judge Peggy Kuo.
Seth D. DuCharme, Acting United States Attorney for the Eastern District of New York, William F. Sweeney, Jr., 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 charges and arrests.
“Preventing gun violence by repeat offenders is a priority of this Office, and we are addressing it aggressively in close coordination with our federal and local law enforcement partners,” stated Acting United States Attorney DuCharme. “As alleged, a minor dispute escalated to a shooting, underscoring the need to eradicate violent gangs that jeopardize the safety of our communities.”
“It's the random violence alleged here that keeps escalating, and enveloping an entire community of innocent people who are being terrorized by the actions of repeat offenders. We are working hourly with our law enforcement partners to address the recent spate of violence, and doing everything we can to make sure their return to crime is a short-lived exercise in futility,” stated FBI Assistant Director-in-Charge Sweeney.
“The gun violence alleged in this indictment tears at the fabric of life in our city. I applaud the NYPD’s vigorous efforts, along with our federal partners, to stop this kind of violence and work closely with the communities we are sworn to serve,” stated NYPD Commissioner Shea.
As detailed in the government’s detention letter filed earlier today, Brown and Williams were involved in the shooting of a victim who was disrespectful toward their gang. On March 20, 2020, an individual with the victim threw a drink at a woman inside the Gold Room Restaurant and Lounge in Prospect Lefferts Gardens, splashing a person standing with Brown. An argument ensued, and the victim, a Crips gang member, flashed a gang sign known as “dropping the rake” — a gesture intended to be insulting to the Folk Nation. The argument continued outside the bar where Brown allegedly displayed a gun and fired a shot into the air. Brown then handed the gun to Williams who walked behind the victim and shot him in the buttocks at close-range. Williams fled and discarded the gun a half block away. The gun was recovered by law enforcement, and DNA from both defendants was found on the weapon.
Brown, who was on federal supervised release at the time of the charged offense, has prior convictions for criminal possession of a loaded firearm, robbery and racketeering conspiracy, among other crimes. Williams, who was on New York state parole at the time of the charged offense, has prior convictions for, among other crimes, conspiracy and criminal possession of a loaded firearm in connection with an earlier shooting of a Folk Nation gang rival.
The charges in the indictment are allegations, and the defendants are presumed innocent unless and until proven guilty. If convicted, both defendants face a maximum sentence of 10 years in prison. If convicted of violating his supervised release, Brown faces an additional sentence of up to two years in prison.
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. Attorney General William Barr has enhanced PSN as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorneys’ Offices to work in partnership with federal, state, local and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime.
The government’s case is being handled by the Office’s Organized Crime and Gangs Section. Assistant United States Attorney Jonathan Siegel is in charge of the prosecution.
The Defendants:
DAVON BROWN (also known as “Chico Dinero”)
Age: 26
Brooklyn, New YorkCHRISTIAN WILLIAMS (also known as “Zonee Flocks”)
Age: 25
Brooklyn, New YorkE.D.N.Y. Docket No. 20-CR-293 (WFK)
President and Employee of Brooklyn Moving Company Charged with Defrauding CustomersRead the Press Release
A criminal complaint was unsealed today in federal court in Brooklyn charging Yakov Moroz, the president of Great Movers Inc. and its successor company New City Movers, and company employee Tal Ohana with wire fraud and wire fraud conspiracy by misrepresenting estimated charges for moving services and then requiring customers to pay additional fees that far exceeded the original estimate in order to recover their belongings. Moroz and Ohana were arrested earlier today and will make their initial appearance this afternoon before United States Magistrate Judge Steven M. Gold.
Seth D. DuCharme, Acting United States Attorney for the Eastern District of New York; William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI); and Douglas Shoemaker, Special Agent-in-Charge, United States Department of Transportation, Office of the Inspector General (DOT-OIG), announced the charges.
According to the complaint, Moroz and Ohana, through Great Movers Inc., which operated through the website https://greatmovingusa.com and other affiliated moving companies, defrauded dozens of customers by misrepresenting the estimated charges for moving services and then (i) requiring customers to pay additional fees, often more than 10 percent of the original estimate, (ii) requiring payment before delivery of goods, or (iii) refusing to return and threatening to sell and auction the customers’ belongings if the fees were not paid. These practices violate federal regulations for companies engaged in the transportation of household goods in interstate commerce. Many customers ultimately paid the inflated and additional fees to ensure delivery of their property.
“As alleged, Moroz and Ohana victimized their customers by holding their belongings hostage until the inflated fees were paid,” stated Acting United States Attorney DuCharme. “This Office will hold accountable anyone who seeks to target the vulnerable in an effort to profit from predatory schemes.” Mr. DuCharme thanked the Better Business Bureau for its assistance with the investigation.
“Imagine moving every item you own from one place to another, trusting the moving company loading up the truck to not rip you off. The subjects in this scheme allegedly used that vulnerability in a cruel way, knowing victims would pay almost anything to get their prized possessions back,” stated FBI Assistant Director-in-Charge Sweeney. “The FBI New York Joint Major Theft Task Force will investigate these fraudsters, and we want other potential victims to report it to us so we can stop these criminals before they move on to someone else.”
“Today’s arrests and actions taken stemming from a criminal investigation conducted by the U.S. Department of Transportation Office of Inspector General (DOT-OIG) and FBI shows our commitment to rooting out fraudulent household goods movers who take advantage of unsuspecting customers,” stated DOT-OIG Special Agent-in-Charge Shoemaker. “Working with our law enforcement and prosecutorial partners, as well as the Federal Motor Carrier Safety Administration, we will continue our vigorous efforts to ensure that commercial household goods movers adhere to Federal laws and regulations designed to protect the public.”
The charges in the complaint are allegations, and the defendants are presumed innocent unless and until proven guilty. If convicted, the defendants face up to 30 years’ imprisonment.
The government’s case is being handled by the Office’s General Crimes Section. Assistant United States Attorney Devon Lash is in charge of the prosecution.
The Defendants:
YAKOV MOROZ
Age: 39
Brooklyn, New YorkTAL OHANA
Age: 37
Queens, New YorkE.D.N.Y. Docket No. 20-MJ-604
Colombo Crime Family Soldier Sentenced to 37 Months in Prison for Racketeering, Loansharking and Illegal Sports GamblingRead the Press Release
Earlier today, Vito Difalco, also known as “Victor” and “The Mask,” an inducted member of the Colombo organized crime family, was sentenced by United States District Judge William F. Kuntz, II, to 37 months’ imprisonment for racketeering.
Seth D. DuCharme, Acting United States Attorney for the Eastern District of New York, announced the sentence.
“With today’s sentence, the defendant has been held accountable for his participation in a violent criminal enterprise that used fear as fuel,” stated Acting United States Attorney DuCharme. “Investigating and disrupting the activities of organized crime will always remain a priority of this Office and our law enforcement partners.” Mr. DuCharme thanked the Federal Bureau of Investigation, New York Field Office, and the New York City Police Department, for their outstanding investigative work.
Difalco and co-defendant Joseph Maratea operated a loansharking business, extending loans at exorbitant interest rates and under the threat physical violence or harm if interest payments were not made on a timely basis. Specifically, they charged $15 in weekly interest payments on every $500 extended, which amounted to 3% weekly interest payments or 156% annual interest. To ensure both that they could locate their debtors and that their debtors understood that Difalco and Maratea knew where they resided, they required debtors to provide copies of their driver’s licenses and their contact information. Defendant Difalco also earned illegal proceeds through his gambling business, which included illegal sports-betting and video gambling machines, Difalco used a legitimate business – a bar called Tryst which he operated – to facilitate his criminal activity and limit detection by law enforcement. Specifically, he used the bar to attract new loansharking customers and used his employees to collect loansharking payments. He also used the bar to operate and promote his illegal gambling businesses.
On April 19, 2018, Difalco and Matera had the following conversation about a debtor’s missed payments:
DIFALCO: Alright stretch out, ‘cause we are going to take a ride in a little while.
MARATEA: Alright.
DIFALCO: I’ll be here, then we’ll take a ride up there.
MARATEA: Where by [John Doe #8]?
DIFALCO: Yeah, we’ll go by [John Doe #8].
MARATEA: Did you call him?
DIFALCO: I called him, he didn’t pick up. I figure I’ll ring the bell and flood
the house.
Maratea pleaded guilty to racketeering and was sentenced in April 2020 to time served and two years’ probation with the first four months to be served under home incarceration
The government’s case is being handled by the Office’s Organized Crime and Gangs Section. Assistant United States Attorneys Elizabeth A. Geddes and Mathew S. Miller are in charge of the prosecution.
The Defendant:
VITO DIFALCO (also known as “Victor” and “The Mask”)
Age: 65
Brooklyn, New YorkE.D.N.Y. Docket No. 18-CR-337 (WFK)
Brooklyn Man Charged with Sabotage of NYPD VehicleRead the Press Release
A criminal complaint was unsealed today in federal court in Brooklyn charging Jeremy Trapp with sabotaging a New York City Police Department (“NYPD”) van by cutting one of the vehicle’s brake lines. Trapp was arrested earlier today at his home in Brooklyn, and was ordered detained pending trial by United States Magistrate Judge Steven M. Gold this afternoon.
Seth D. DuCharme, Acting United States Attorney for the Eastern District of New York, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Dermot F. Shea, Commissioner, NYPD, announced the arrest and charges.
"Trapp’s alleged actions had potentially life-threatening consequences for NYPD officers and members of the public, who could have been injured by the vehicle’s brake failure,” stated Acting United States Attorney DuCharme. “This Office will ensure that anyone who targets police officers or acts with the intent to undermine public safety efforts will face justice.”
“Mr. Trapp’s alleged behavior is illegal, and for the information of others who may have been planning similar criminal activity, we’d like to remind them that the FBI investigates and charges this type of behavior as a federal crime,” stated FBI Assistant Director-in-Charge Sweeney. “Citizens of this city, many of whom are not currently collecting paychecks, paid for the equipment allegedly damaged by Mr. Trapp. They expect it to be available to protect and serve our community when needed. Behavior like the type alleged here diverts resources, destroys property, risk lives, and detracts from the important message thousands of peaceful citizens have rightfully highlighted.”
“The defendant who believed he was cutting the brake lines to a vehicle that could be carrying up to nine police officers clearly intended to create a situation that could result in serious injuries or death for officers or civilians. No one should confuse this conduct with lawful protest. We appreciate the work of the NYPD Intelligence Bureau, the FBI agents and the prosecutors from the US Attorney for the Eastern District of New York in bringing these charges,” stated NYPD Commissioner Shea.
As set forth in the complaint, on July 13, 2020, Trapp participated in a demonstration outside the Brooklyn Criminal Court building in downtown Brooklyn that was objecting to the arrests of individuals who had earlier confronted pro-law enforcement demonstrators in Bay Ridge, Brooklyn. As the demonstration was winding down, Trapp spoke with an individual who was a confidential source for the NYPD (the “CS”) and he stated that he wanted to harm police officers and their supporters. Trapp also stated that he wanted to cut the brake lines on police cars. On July 17, 2020, after Trapp and the CS communicated via telephone calls and text messages, the CS drove to Trapp’s home and picked him up in the CS’s vehicle, where Trapp showed the CS his backpack, which contained, among other things, a scissor-like tool. At approximately 4:00 p.m. on July 17, 2020, Trapp and the CS approached a marked NYPD van parked near Fourth Avenue and 42nd Street in Sunset Park. Trapp crawled under the van and reached for something near one of the vehicle’s wheel wells while the CS stood nearby acting as a purported “lookout.” Trapp then crawled out from under the van and left the area with the CS. Both the CS and NYPD officers conducting surveillance recorded this incident on video. An inspection of the NYPD van revealed that a line for a wheel speed sensor had been partially severed. An NYPD automobile mechanic informed the FBI that the partially severed line is part of the NYPD Van’s anti-lock braking system, which is similar in appearance to, and in the same location as, the NYPD vehicle’s main brake line. A malfunctioning anti-lock braking system would adversely impact a driver’s ability to stop and maintain control of the van in an emergency.
The charges in the complaint are allegations, and the defendant is presumed innocent unless and until proven guilty. If convicted, the defendant faces up to 20 years’ imprisonment.
The government’s case is being handled by the Office’s National Security and Cybercrime Section. Assistant United States Attorney Francisco J. Navarro is in charge of the prosecution.
The Defendant:
JEREMY TRAPP
Age: 24
Brooklyn, New YorkE.D.N.Y. Docket No.: 20-MJ-626
U.S. Attorney’s Office Commemorates 30th Anniversary of the Americans with Disabilities ActRead the Press Release
Seth D. DuCharme, Acting United States Attorney for the Eastern District of New York, this week marked the 30th anniversary of the passage of the Americans with Disabilities Act of 1990 (ADA). Since President George H.W. Bush signed the Act into law on July 26, 1990, the ADA has transformed society—by replacing exclusion with access, segregation with integration, and limitations with self-determination.
The ADA prohibits discrimination on the basis of disability in employment, activities and facilities of state and local governments and places of public accommodation, including all hotels, restaurants, retail stores, theaters, health care facilities, convention centers, parks and places of recreation. Its promise is to work to eliminate disability discrimination across the range of services, programs and activities that most Americans take for granted, but were largely inaccessible to individuals with disabilities prior to the law’s enactment. The ADA seeks to allow individuals with disabilities to live more independently.
The ADA empowers the U.S. Attorney’s Office to investigate, litigate and resolve complaints of discrimination and to conduct compliance reviews to ensure covered entities comply with the Act’s requirements.
“On this anniversary of the enactment of the ADA, we are reminded of the harm caused by discrimination on the basis of disability,” stated Acting United States Attorney DuCharme. “The ADA recognizes that we all benefit when persons with disabilities have the same opportunities and access to services and facilities as people without disabilities. This Office, which serves the people of Brooklyn, Queens, Staten Island, and Nassau and Suffolk Counties, remains committed to protecting the rights of the disabled and taking legal action when necessary to right wrongs.”
Since the passage of the ADA in 1990, this Office has fulfilled the mission of the ADA in a wide range of enforcement actions, including:
- Protecting the Rights of New York City Firefighters with Disabilities. In response to a complaint by an FDNY captain whose lungs were damaged while serving as a 9/11 first responder, the United States Attorney’s Office successfully obtained a court-ordered Stipulation of Settlement compelling the FDNY to develop and implement a policy providing reasonable accommodation to firefighters with disabilities who are otherwise able to perform work within the department.
- Ensuring Accessibility at Citi Field and Barclays Center. Pursuant to its authority to conduct compliance reviews under the ADA, the Office worked to ensure that individuals with mobility impairments are able to access Citi Field, home of the New York Mets, and the Brooklyn Nets’ Barclays Center.
- Protecting the Rights of Individuals with Serious Mental Illness. The Office has obtained an ongoing Consent Decree with the State of New York to transition into the community individuals with mental illness who reside in adult homes – substandard privately owned facilities licensed by the State. Almost 1,000 former adult home residents covered by the Decree now live successfully in community placements.
- Protecting the Rights of Individuals Who Are Deaf and Hard of Hearing in the New York City Homeless Family System Programs. The Office entered into a Consent Decree and Judgment with the City of New York homeless family shelter system to ensure that it provides sign language interpretation and other auxiliary aids and services to clients who are deaf or hard of hearing.
- Obtaining relief for individuals with disabilities who were subject to discrimination
- Compelling a regional shoe store chain to educate its managers regarding the rights of individuals with disabilities after a store manager in Bay Ridge, Brooklyn forced a customer in a wheelchair to leave the store because her wheels were “dirtying the carpets.” The Settlement Agreement also required the chain to pay the individual $10,000 for emotional injury.
- Obtaining damages on behalf of an HIV+ patient whose surgeon refused to operate on him.
- Obtaining relief for a child with diabetes who was turned away from a children’s summer camp.
For more information about the 30th Anniversary of the ADA, please visit www.ada.gov. To file a complaint with the U.S. Attorney’s Office, contact the U.S. Attorney’s Office at [email protected] or visit the Civil Rights Division’s portal at https://civilrights.justice.gov/report/
For more information about the ADA, call the Department’s toll-free ADA Information Line at 800-514-0301 or 800-514-0383 (TTY).
- Protecting the Rights of New York City Firefighters with Disabilities. In response to a complaint by an FDNY captain whose lungs were damaged while serving as a 9/11 first responder, the United States Attorney’s Office successfully obtained a court-ordered Stipulation of Settlement compelling the FDNY to develop and implement a policy providing reasonable accommodation to firefighters with disabilities who are otherwise able to perform work within the department.
President of Navillus Contracting Charged with Defrauding Union Benefits FundsRead the Press Release
An 11-count indictment was unsealed earlier today in federal court in Brooklyn charging Donal O’Sullivan, his sister Helen O’Sullivan and Padraig Naughton with wire fraud, mail fraud, embezzlement from employee benefit funds, submission of false remittance reports to union benefit funds and conspiracy to commit those crimes. The indictment relates to the defendants’ conduct at Navillus Tile, Inc. d/b/a Navillus Contracting (“Navillus”), one of the largest construction firms in New York City. Donal O’Sullivan is the founder, owner and President of Navillus. Helen O’Sullivan is the Treasurer of Navillus and Padraig Naughton is the company’s Financial Controller. The defendants were arrested this morning and arraigned this afternoon before United States Magistrate Judge Robert M. Levy. Donal O’Sullivan was released on a $500,000 bond; Helen O’Sullivan and Naughton were each released on $250,000 bonds.
Seth D. DuCharme, Acting United States Attorney for the Eastern District of New York; William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI); Thomas Licetti, Acting Regional Director, U.S. Department of Labor, Employee Benefits Security Administration (DOL-EBSA); Michael C. Mikulka, Special Agent-in-Charge, U.S. Department of Labor, Office of Inspector General, New York Region (DOL-OIG); Peter C. Fitzhugh, Special Agent-in-Charge, Homeland Security Investigations, New York (HSI); and Michael Farbiarz, Acting Inspector General, Port Authority of New York and New Jersey, Office of the Inspector General (PANYNJ-OIG), announced the arrests and indictment.
Navillus is a signatory to multiple collective bargaining agreements with labor organizations – including the Bricklayers and Allied Craft Workers Local No. 1, the New York City District Council of Carpenters, the Cement Masons Union, the Pointers, Cleaners and Caulkers, and the International Brotherhood of Teamsters Local 282 – that required the company to employ union workers on its projects and to make contributions to various union benefits including pension, annuity and welfare funds on their behalf. To ensure that the benefits funds received the contributions that it had agreed to pay, Navillus was required to periodically file remittance reports with the benefits funds that detailed the number of hours worked by each worker.
As alleged in the indictment, the defendants engaged in a payroll scheme from approximately 2011 to 2017 to avoid making those contributions by using a consulting firm to pay certain Navillus workers for work done on Navillus construction jobs. However, neither Navillus nor the consulting firm made contributions to the benefits funds on behalf of those workers. To disguise the scheme, the defendants directed the consulting firm to issue fraudulent invoices to conceal the fact that funds paid by Navillus to the consulting firm were, in fact, for wages paid to Navillus workers. As a result, the defendants caused Navillus to avoid making over $1 million in required contributions to union benefits funds.
“As alleged, these senior construction company executives were the architects of a payroll scheme designed to evade obligatory contributions to union benefits funds that their workers depend upon,” stated Acting United States Attorney DuCharme. “This Office, together with its federal and local law enforcement partners, will continue to investigate and hold accountable employers whose corrupt actions jeopardize their employees’ economic well-being.” Mr. DuCharme expressed his grateful appreciation to the New York City Police Department for its assistance with the case.
“As alleged, the defendants deprived union workers of benefits to which they were entitled, falsifying records and creatively circumventing their fiscal responsibilities,” stated FBI Assistant Director-in-Charge Sweeney. “This type of crime depletes the benefits union employees have a right to access. Today’s arrests highlight this illegal scheme and reassert our dedication to rooting out crimes of this nature.”
“Embezzling and underfunding employee benefits funds cheat workers, retirees, and their families of the benefits to which they are entitled and are against the law. The U.S. Department of Labor’s Employee Benefits Security Administration will continue to work with our law enforcement partners to investigate and take action to counter illegal activity that threatens employees’ hard-earned benefits,” stated DOL-EBSA Acting Regional Director Thomas Licetti.
“An important mission of the Office of Inspector General is to investigate allegations of fraud relating to labor unions and their affiliated employee benefit plans. We will continue to work with our law enforcement partners to investigate these types of allegations,” stated DOL-OIG Special Agent-in-Charge Mikulka.
“The alleged scheme perpetrated by the president of Navillus Contracting cheated union benefits funds of more than a million dollars,” stated HSI Special Agent-in-Charge Fitzhugh. “HSI’s collaboration with federal, state and local partners allows for comprehensive investigations and arresting those fraudsters who look to fill their pockets at the expense of others.”
“The Port Authority Office of Inspector General initiated this investigation, and the message today’s indictment sends is crystal clear: the Port Authority has zero tolerance for fraud by its business partners, and we will work aggressively to ensure that individuals who engage in fraudulent conduct — including contractors’ senior executives, where appropriate — are held personally accountable under the criminal law,” stated PANYNJ Acting Inspector General Farbiarz.
The charges in the indictment are allegations, and the defendants are presumed innocent unless and until proven guilty.
The government’s case is being handled by the Office’s Public Integrity Section. Assistant United States Attorneys Martin Coffey and Turner Buford are in charge of the prosecution.
The Defendants:
DONAL O’SULLIVAN
Age: 59
Queens, New YorkHELEN O’SULLIVAN
Age: 60
Queens, New YorkPADRAIG NAUGHTON
Age: 48
New York, New YorkE.D.N.Y. Docket No. 20-CR-272 (WFK)
Former Mexican Secretary of Public Security Genaro Garcia Luna Charged with Engaging in a Continuing Criminal EnterpriseRead the Press Release
A superseding indictment was returned today in federal court in Central Islip, New York, charging Genaro Garcia Luna, the former Secretary of Public Security in Mexico from 2006 to 2012, with engaging in a continuing criminal enterprise. Luis Cardenas Palomino and Ramon Pequeno Garcia, former high-ranking Mexican law enforcement officials who worked under Garcia Luna, are each charged with three counts of cocaine trafficking conspiracy. In exchange for multimillion-dollar bribes, the defendants allegedly permitted the Sinaloa Cartel to operate with impunity in Mexico. Garcia Luna was arrested on December 9, 2019 by federal agents in Dallas, Texas, and he is presently pending trial in the Eastern District of New York to face these charges. Cardenas Palomino and Pequeno Garcia are presently fugitives.
Seth D. DuCharme, Acting United States Attorney for the Eastern District of New York, announced the superseding indictment.
"As alleged, for nearly two decades Garica Luna betrayed those he was sworn to protect by accepting bribes from members of the Sinaloa Cartel to facilitate their crimes and empower their criminal enterprise,” stated Acting United States Attorney DuCharme. “Through today’s superseding indictment, Garcia Luna and his co-conspirators will face justice for offenses involving the importation and the distribution of massive quantities of dangerous drugs into the United States.” Mr. DuCharme thanked the Drug Enforcement Administration (DEA) offices in New York and Houston for their work on the case.
As set forth in the superseding indictment and other court filings, from 2001 to 2012, while occupying high-ranking law enforcement positions in the Mexican government, Garcia Luna received millions of dollars in bribes from the Sinaloa Cartel in exchange for providing protection for its drug trafficking activities. From 2001 to 2005, Garcia Luna led Mexico’s Federal Investigation Agency, and from 2006 to 2012, he served as Mexico’s Secretary of Public Security, controlling Mexico’s Federal Police Force. Cardenas Palomino and Pequeno Garcia also were high-level Mexican law enforcement officials who worked under Garcia Luna during this time. They each received millions of dollars in bribes from the Sinaloa Cartel.
In exchange for the payment of bribes, between January 2001 and the present, the defendants abused their public positions by allowing the Sinaloa Cartel to obtain safe passage for its drug shipments, and by providing sensitive law enforcement information about investigations into the Cartel, and information about rival drug cartels, thereby facilitating the importation of multi‑ton quantities of cocaine and other drugs into the United States. For example, between 2002 and 2007, Garcia Luna allegedly aided at least six cocaine shipments totaling more than 50,000 kilos of cocaine. Additionally, the defendants placed other corrupt officials in positions of power in certain areas of Mexico controlled by the Sinaloa Cartel. On at least two occasions, the Cartel personally delivered bribe payments to Garcia Luna in briefcases containing millions of dollars.
The charges in the indictment are allegations, and the defendants are presumed innocent unless and until proven guilty.
If convicted of the continuing criminal enterprise charge, Garcia Luna faces a mandatory minimum sentence of 20 years’ imprisonment and a maximum of life imprisonment. If convicted of a drug conspiracy charge, Cardenas Palomino and Pequeno Garcia each face a mandatory minimum sentence of 10 years’ imprisonment and a maximum of life imprisonment.
The 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 Drug Enforcement 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, New York City Police Department, New York State Police, Homeland Security Investigations, 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 prosecuted by the Eastern District’s International Narcotics and Money Laundering Section and Public Integrity Section. Assistant United States Attorneys Michael P. Robotti, Ryan Harris and Erin Reid are in charge of the prosecution.
The Defendants:
GENARO GARCIA LUNA
Age: 51
FloridaLUIS CARDENAS PALOMINO
Age: 51
MexicoRAMON PEQUENO GARCIA
Age: 53
MexicoE.D.N.Y. Docket No. 19-CR-576 (BMC)
Individual Arrested for Brooklyn Bank RobberyRead the Press Release
A criminal complaint was unsealed today in federal court in Brooklyn charging Eric Adjei with the robbery of a Chase Bank in Brooklyn on July 21, 2020. Adjei was arrested today and was ordered detained pending trial by United States Magistrate Judge Robert M. Levy.
Seth D. DuCharme, Acting United States Attorney for the Eastern District of New York, announced the arrest.
“As alleged, the defendant threatened a bank teller in the course of a robbery here in Brooklyn,” stated Acting United States Attorney DuCharme. “Our Office remains committed to protecting our financial institutions and the employees and customers who rely on them to safeguard their money, and anyone who robs a bank in this district will face justice.” Mr. DuCharme thanked the Federal Bureau of Investigation, New York Field Office, and the New York City Police Department for the diligent work that led to the apprehension of the defendant.
According to court filings, on July 21, 2020, at approximately 5:40 p.m., Adjei entered the Chase Bank at 401 Flatbush Avenue. Adjei approached the teller window and stated, “I have a gun in my bag, give me $3,000.” Adjei was wearing a surgical mask, a blue cloth over a green cap, and a distinctive black and white horizontally striped shirt. NYPD officers located Adjei after recovering surveillance video of him in a subway station, with his surgical mask pulled down.
The charges in the complaint are allegations, and the defendant is presumed innocent unless and until proven guilty. If convicted, the defendant faces up to 20 years’ imprisonment.
The government’s case is being handled by the Office’s General Crimes Section. Assistant United States Attorney Matthew R. Galeotti is in charge of the prosecution.
The Defendant:
ERIC ADJEI
Age: 47
New York, New YorkE.D.N.Y. Docket No. 20-MJ-578
Former Long Island Doctor Pleads Guilty to Conspiring to Illegally Distribute OxycodoneRead the Press Release
Earlier today, in federal court in Central Islip, Tameshwar Ammar, a former medical doctor in Roslyn, New York, pleaded guilty via teleconference to conspiring to illegally distribute oxycodone. Ammar was indicted in November 2019. On June 22, 2020, he relinquished his license to practice medicine. Today’s plea was entered before United States District Judge Denis R. Hurley. As part of his plea, Ammar agreed to forfeit approximately $245,700 as proceeds involved in the oxycodone offense. When sentenced, Ammar faces up to 20 years in prison.
Seth D. DuCharme, Acting United States Attorney for the Eastern District of New York, and Ray Donovan, Special Agent-in-Charge, Drug Enforcement Administration, New York Division (DEA), announced the guilty plea.
As set forth in the indictment and other court filings, between 2013 and 2019, Ammar illegally prescribed thousands of highly addictive oxycodone pills to two individuals identified in the indictment as John Doe 1 and John Doe 2. According to a review of Ammar’s medical files for the two individuals, Ammar wrote the prescriptions without any diagnostic proof that either had a legitimate medical necessity. Ammar prescribed oxycodone pills to John Doe 1, knowing that he intended to sell the pills to others. In addition, after learning that John Doe 2 had been admitted to a psychiatric facility in March 2018, Ammar continued to prescribe John Doe 2 with oxycodone as well as methadone. In July 2019, John Doe 2 died of a drug overdose caused by oxycodone, methadone and ketamine. After his arrest on November 7, 2019, Ammar was ordered by the Court to surrender his DEA registration.
“Today’s guilty plea establishes that the defendant, who was a doctor, essentially acted as a drug dealer, spreading injury and addiction without regard for the consequences,” stated Acting United States Attorney DuCharme. “This Office and our partners at the DEA are working tirelessly to combat the opioid epidemic on Long Island and elsewhere, including by prosecuting medical professionals who betray their oath to do no harm.” Mr. DuCharme also thanked the U.S. Department of Health and Human Services, Office of Inspector General, New York Region, for their assistance during the investigation.
“Dr. Ammar’s plea shows us that his motivation was greed, not the welfare and health of his patients. Instead of healing, he chose a dangerous path of causing addiction, overdose, and overwhelming suffering to many. I commend the DEA Long Island Tactical Diversion Squad, the U.S. Attorney’s Office for the Eastern District of New York and our law enforcement partners for pursuing the investigation and prosecution with diligence and determination,” stated DEA Special Agent-in-Charge Donovan.
The government’s investigation was led by the DEA’s Long Island Tactical Diversion Squad, comprising agents and officers of the DEA, Nassau County Police Department (NCPD), Suffolk County Police Department, Port Washington Police Department and Rockville Centre Police Department. The DEA Tactical Diversion Squad also worked in conjunction with officers and agents of the U.S. Department of Health & Human Services Office of the Inspector General and the Hempstead Police Department.
This case is the latest in a series of federal prosecutions by the United States Attorney’s Office for the Eastern District of New York as part of the Prescription Drug Initiative. In January 2012, this Office and the DEA, in conjunction with the five District Attorneys in this district, the Nassau and Suffolk County Police Departments, the New York City Police Department, the New York State Police and other key federal, state and local government partners launched the Initiative to mount a comprehensive response to what the United States Department of Health and Human Services Center for Disease Control and Preventions called an epidemic increase in the abuse of so-called opioid analgesics. To date, the Initiative has brought over 160 federal and local criminal prosecutions, including the prosecution of over 20 health care professionals; taken civil enforcement actions against a hospital, a pharmacy and pharmacy chain; removed prescription authority from numerous rogue doctors and expanded information-sharing among enforcement agencies to better target and pursue drug traffickers. The Initiative also is involved in an extensive community outreach program to address the abuse of pharmaceuticals.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorneys Bradley T. King and Madeline O’Connor are in charge of the prosecution.
The Defendant:
TAMESHWAR AMMAR
Age: 52
Amityville, New YorkE.D.N.Y. Docket No. 19-CR-516 (DRH)
Queens Man Indicted for Defrauding Pharmaceutical ManufacturerRead the Press Release
Earlier today, at the federal courthouse in Central Islip, an indictment was filed charging Arkadiy Khaimov with conspiring to commit mail and wire fraud by defrauding a pharmaceutical manufacturer of approximately $6.9 million by submitting fraudulent claims under the manufacturer’s Co-pay Coupon Program. Khaimov will be arraigned at a later date.
Seth D. DuCharme, Acting United States Attorney for the Eastern District of New York, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), Philip R. Bartlett, Inspector-in-Charge, United States Postal Inspection Service (USPIS), Jonathan D. Larsen, Special Agent-in-Charge, Internal Revenue Service-Criminal Investigation, announced the indictment.
As alleged in the indictment, the pharmaceutical manufacturer, referred to in the indictment as “John Doe Company 1,” established the Co-pay Program to reimburse pharmacies for dispensing a prescription medication. Between approximately February 2017 and July 2018, Khaimov and his co-conspirators submitted claims for approximately $6.9 million in reimbursements under the Co-pay Program for the medications that pharmacies operated by the defendant and his co-conspirators never actually dispensed. In most cases, the pharmacies that the defendant and his co-conspirators operated sought reimbursements for highly unusual 18 or 21-day supplies of the medication, as compared to the 28-day supply that is commonly used in legitimate medical treatment. This enabled the defendant and his co-conspirators to submit approximately two reimbursement claims in the same month. In some cases Khaimov and his co-conspirators fraudulently used the credentials of a Nassau County-based physician to submit the false claims.
“Khaimov allegedly stole millions of dollars from a program that was established to assist patients in need of high-cost medication,” stated Acting United States Attorney DuCharme. “Due to the hard work of our investigators and prosecutors, he will now be held accountable.”
“Taking advantage of a program established to help pharmacies defray the cost of dispensing vital prescription medicine to those who need it most, Khaimov and his co-conspirators allegedly sought to profit from fraudulent claims totaling more than $6 million. It’s utterly discouraging to see people capitalize on any initiative designed to contribute to the greater good, but when the crime is healthcare related, and manufacturers stand to lose millions, nobody wins in the long run. Today’s charges signal an end to this particular instance of fraud, but rest assured, along with our partners, we will continue to seek out and pursue criminal charges wherever else this activity exists,” stated FBI Assistant Director-in-Charge Sweeney.
“Rebate fraud is not a new crime, it’s been investigated by Postal Inspectors for decades. What makes this case different is the size and scope of the scheme. The investigation of fraud crimes involving the U.S. Mail will always be a top priority for the Postal Inspection Service. Today’s arrest reflects a commitment by law enforcement to bring those to justice who participate in schemes to defraud” stated USPIS Inspector-in-Charge Bartlett.
“Fraud schemes that prey on funds intended for the use of those in need in our society, such as the one Mr. Khaimov has perpetrated here, are egregious and a serious concern for law enforcement and the tax-paying public in general”, stated IRS-CI Special Agent-in-Charge Larsen, “In a case like this, IRS-Criminal Investigation takes pride in working shoulder to shoulder with our law enforcement partners to see that the offenders are punished to the fullest extent of the law.”
The charges announced today are allegations, and the defendant is presumed innocent unless and until proven guilty. If convicted, Khaimov faces a maximum sentence of 20 years’ imprisonment.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorneys Bradley T. King, Madeline O’Connor and Department of Justice Trial Attorney Andrew Estes are in charge of the prosecution.
The Defendant:
ARKADIY KHAIMOV, also known as “Alex”
Age: 37
Forest Hills, QueensE.D.N.Y. Docket No. 20-CR-267 (JS)
Justice Department Reaches Settlement with Bank of America to Resolve Claims of Disability Discrimination and Compensate VictimsRead the Press Release
The Department of Justice and the U.S. Attorney’s Office for the Eastern District of New York today filed a civil complaint and proposed settlement agreement to resolve claims that Bank of America, N.A. (Bank) engaged in a pattern or practice of discrimination on the basis of disability, in violation of the Fair Housing Act. The settlement agreement is subject to approval by the federal district court.
The department alleges in its complaint that for several years beginning in January 2010, the Bank maintained a policy of denying mortgage and home equity loans to adults with disabilities who were under legal guardianships or conservatorships. The Bank changed this policy in 2016 for mortgage loans and in 2017 for home equity loans.
“No one in this free country should be denied access to the American dream merely because of a disability. The unalienable right to pursue happiness extends to all people, including those with disabilities, and purchasing a home is one way many people exercise this right,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “The Fair Housing Act prohibits banks from denying mortgage loans and other housing-related credit to people because of their disabilities, and this department will hold accountable those lenders who engage in such illegal conduct. Today’s settlement provides compensation to victims of unlawful discrimination and requires Bank of America to apply non-discriminatory policies in deciding which applicants will receive loans.”
“This settlement ensures that Bank of America will no longer discriminate against people with disabilities when issuing mortgage and home equity loans, and compensates the victims for their losses,” said Seth D. DuCharme, Acting U.S. Attorney for the Eastern District of New York. “Our Office is committed to standing up for the rights of individuals with disabilities and taking action when necessary to vindicate those rights.”
The Bank has ended its practice of denying mortgage and home equity loans to adults with disabilities under guardianships or conservatorships. The terms of the settlement require the Bank to pay $4,000 per loan to eligible loan applicants who were affected by the Bank’s prior discriminatory policies, and we anticipate that the payments will total approximately $300,000. The settlement also requires the Bank to maintain the new, non-discriminatory loan underwriting policies and train its employees on the new policies. In addition, the Bank must monitor its loan processing and underwriting activities to ensure compliance with the Fair Housing Act.
The Justice Department’s enforcement of fair lending laws is conducted by the Civil Rights Division’s Housing and Civil Enforcement Section. Additional information about the Section’s fair lending enforcement can be found at www.justice.gov/fairhousing. Lending discrimination can be reported to the Civil Rights Division at https://civilrights.justice.gov.
Bank of America Settles Fair Housing Act Discrimination Claims and Agrees to Pay Damages to VictimsRead the Press Release
Seth D. DuCharme, Acting United States Attorney for the Eastern District of New York, and Eric S. Dreiband, Assistant Attorney General for Civil Rights, filed a civil complaint and proposed settlement agreement with Bank of America, N.A. (“Bank”) today to resolve claims that the Bank engaged in a pattern or practice of discrimination on the basis of disability, in violation of the Fair Housing Act. The Settlement Agreement is subject to being so ordered by the assigned district judge.
According to the civil complaint, the United States alleged that, between January 2010 and 2016, the Bank maintained a policy of denying mortgage loans and, between January 2010 and 2017, home equity loans, to adults with disabilities who were under legal guardianships or conservatorships.
“This settlement ensures that Bank of America will no longer discriminate against people with disabilities when issuing mortgage and home equity loans, and compensates the victims for their losses,” stated Acting United States Attorney DuCharme. “Our Office is committed to standing up for the rights of individuals with disabilities and taking action when necessary to vindicate those rights.”
“No one in this free country should be denied access to the American dream merely because of a disability. The unalienable right to pursue happiness extends to all people, including those with disabilities, and purchasing a home is one way many people exercise this right,” said Assistant Attorney General Dreiband of the Civil Rights Division. “The Fair Housing Act prohibits banks from denying mortgage loans and other housing-related credit to people because of their disabilities, and this Department will hold accountable those lenders who engage in such illegal conduct. Today’s settlement provides compensation to victims of unlawful discrimination and requires Bank of America to apply non-discriminatory policies in deciding which applicants will receive loans.”
The Bank has ended its practice of denying mortgage and home equity loans to adults with disabilities under guardianships or conservatorships. The terms of the settlement require the Bank to pay approximately $300,000 to compensate victims of its conduct. The settlement also requires the Bank to maintain the new, non-discriminatory loan underwriting policy and train its employees on the new policy. In addition, the Bank must monitor its loan processing and underwriting activities to ensure compliance with the Fair Housing Act. The Bank will report to the United States every six months for a two year period regarding its compliance with the terms of the settlement and on any complaints it has received regarding any instance in which a mortgage loan application was denied to an adult applicant represented by a legal guardian or conservator.
Bank of America cooperated with the United States’ investigation and agreed to settle this matter without contested litigation. By entering this Agreement, Bank of America does not admit, and expressly denies, any liability, wrongdoing, or non-compliance with the provisions of the FHA.
This case is being handled by Eastern District of New York Assistant U.S. Attorney Rachel G. Balaban and Deputy Chief Lucy G. Carlson and Trial Attorney Katherine A. Raimondo of the Civil Rights Division Housing and Civil Enforcement Section.
E.D.N.Y. Civil Docket No.: 20-CV-3306 (AMD)
Three Members of Brooklyn-Based Real Ryte Set of the Bloods Gang Arrested for Attempted Murder and Other ChargesRead the Press Release
An indictment was unsealed today in federal court in Brooklyn charging three alleged members of the Real Ryte set of the Bloods street gang with crimes related to their participation in acts of violence, including the attempted murder of a gang rival that left an unintended target with gunshot wounds. Specifically, Dajahn McBean, Semaj Smith and Mark Waiters are charged with conspiring to commit murder in-aid-of their racketeering enterprise, attempted murder and assault in-aid-of racketeering, and using firearms in furtherance of the attempted murder and assault. These crimes stemmed from an internecine gang war with the Breadgang set of the Bloods. Smith was arrested this morning and will be arraigned via videoconference before United States Magistrate Judge James Orenstein this afternoon. Waiters and McBean are in custody and will be arraigned on a later date.
Seth DuCharme, Acting United States Attorney for the Eastern District of New York, William F. Sweeney, Jr., 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 indictment.
“The Real Rytes allegedly engaged in extreme acts of violence that threatened the safety of our community and, in one instance, resulted in serious injury to a bystander,” stated Acting United States Attorney DuCharme. “This Office and our law enforcement partners will continue to work hard to address the problem of gun violence in our neighborhoods, and we will prosecute to the fullest extent of the law gang members who endeavor to use our streets as battlefields.” Mr. DuCharme expressed his grateful appreciation to the New York State Department of Corrections and Community Supervision for its assistance with the investigation.
“The alleged behavior of these individuals has now landed them in federal custody and, if convicted, they’re in for a long stay,” stated FBI Assistant Director-in-Charge Sweeney. “To others anywhere in this city who are engaging in violent acts and illegally carrying weapons in our neighborhoods, pay attention: the FBI/NYPD Safe Streets Task Force is fully engaged with our partners, and we will utilize any federal law available to protect our community. The penalties for breaking those federal laws are appropriately severe.”
According to the indictment and public court documents, the Real Ryte set of the Bloods street gang operated in Brooklyn and elsewhere. Real Ryte members were active on social media and often appended the name of the gang to their usernames, used the #RealRyte hashtag on their posts and also wore clothing and jewelry with the Real Ryte gang’s double “R” logo on it. Between 2015 and 2017, Real Ryte was feuding with a rival set of the Bloods known as the Breadgang, whose members also operated in Brooklyn. The feud led to a series of violent confrontations between the two gangs, and the defendants and their co-conspirators sought to retaliate against the Breadgang for the December 19, 2015 slaying of Real Ryte member Sean Peart by shooting and killing Breadgang members at any opportunity. On January 3, 2017, the defendants learned that a Breadgang member could be found at a specific location in the vicinity of Essex Street and Hester Street in lower Manhattan. Smith and Waiters traveled to the location and shot an innocent person sitting in his car whom they mistook for their intended target. The victim was seriously injured, but survived the shooting.
The charges in the indictment are allegations, and the defendants are presumed innocent unless and until proven guilty. If convicted of discharging a firearm during and in relation to a crime of violence, each of the defendants faces a mandatory minimum sentence of 10 years’ and up to life imprisonment, which would run consecutively to any other sentence imposed. The murder conspiracy and attempted murder in-aid-of racketeering charges each carry a sentence of up to 10 years’ imprisonment, and the assault in-aid-of racketeering charge carries a sentence of up to 20 years’ imprisonment.
The government’s case is being handled by the Office’s Organized Crime and Gangs Section. Assistant United States Attorneys Jennifer M. Sasso, Drew G. Rolle and Nicholas J. Moscow are in charge of the prosecution.
The Defendants:
DAJAHN MCBEAN (also known as “Jeezy Mula”)
Age: 24
Brooklyn, New YorkSEMAJ SMITH (also known as “Bam Bam” and “Real Ryte Sport”)
Age: 26
Brooklyn, New YorkMARK WAITERS (also known as “Telly”)
Age: 23
Brooklyn, New YorkE.D.N.Y. Docket No.: 20-CR-260 (ARR)
MS-13 Gang Members Indicted for Six Murders on Long IslandRead the Press Release
A 24-count indictment was unsealed yesterday in federal court in Central Islip charging eight members of the violent transnational criminal organization La Mara Salvatrucha, also known as the “MS-13,” with multiple racketeering offenses in connection with six murders, two attempted murders, a kidnapping conspiracy and narcotics trafficking conspiracies, as well as related charges including assault in aid of racketeering and firearms offenses. The defendants Carlos Alfaro, Jose Moises Blanco, Oseas Gonzalez, Jose Jonathan Guevara-Castro, Victor Lopez-Morales, Ever Morales-Lopez, David Sosa-Guevara and Kevin Torres allegedly are members of one of two subgroups or “cliques” of the MS-13 operating on Long Island: the Hollywood Locos Salvatruchas (“Hollywood”) clique and the Sailors Locos Salvatruchas Westside (“Sailors”) clique. Sosa-Guevara and Torres allegedly were the New York leaders of the Hollywood and Sailors cliques, respectively, and were in direct communication with high-ranking MS-13 leaders in El Salvador.
Blanco and Gonzalez were arrested yesterday morning in Salisbury and Charlotte, North Carolina, respectively, appeared in the United States District Court for the Western District of North Carolina and were both detained. Blanco and Gonzalez will be transferred to the Eastern District of New York and arraigned at a later date before United States Circuit Judge Joseph F. Bianco. Alfaro, Lopez-Morales, Morales-Lopez and Sosa-Guevara, who are in state custody, and Torres, who is in federal custody, will also be arraigned at a later date before Circuit Judge Bianco. Guevara-Castro remains at large.
Two additional MS-13 members, both of whom were juveniles at the time they allegedly committed the crimes, have separately been charged with racketeering offenses and several murders. By statute, those cases remains under seal at this time.
Attorney General William P. Barr; Seth D. DuCharme, Acting United States Attorney for the Eastern District of New York; William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI); Ray Donovan, Special Agent-in-Charge, Drug Enforcement Administration, New York Division (DEA); Madeline Singas, District Attorney, Nassau County District Attorney’s Office (NCDAO); and Patrick J. Ryder, Commissioner, Nassau County Police Department (NCPD), announced the arrests and indictment.
“In 2017, the President directed the Department of Justice to go to war against MS-13, and we did just that,” said Attorney General Barr. “In coordination with our partners at the Department of Homeland Security, the Justice Department’s law enforcement components have successfully investigated, charged, and arrested command and control elements of MS-13 responsible for murder. Joint Task Force Vulcan’s operations have significantly degraded MS-13’s capabilities. While there is still work to be done, the Department of Justice remains committed to protecting Americans threatened by MS-13, and we will not rest until we have successfully defeated this transnational criminal organization.”
“As alleged, the defendants committed multiple murders and other violent and wanton crimes on Long Island to further MS-13’s vicious code,” stated Acting United States Attorney DuCharme. “Victims were hacked with machetes, one shot numerous times and another decapitated. This Office, working tirelessly with our local and federal law enforcement partners, will not rest until violent gangs are eradicated from the communities they have terrorized.” Mr. DuCharme expressed his grateful appreciation to all the members of the FBI’s Long Island Gang Task Force, the DEA, the NCPD and the NCDAO, as well as to the members of the U.S. Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI), the Suffolk County Police Department (SCPD), the FBI’s Charlotte Safe Streets Task Force, and the United States Attorneys’ Offices for the Western District of North Carolina, the Middle District of North Carolina, and the Eastern District of Virginia, for their outstanding assistance and partnership in this case.
"Putting these men in a federal prison for the rest of their lives, or facing possible death sentences, may not mean much to them as members of MS-13 because it fits their macho bravado,” stated FBI Assistant Director-in-Charge Sweeney. “But it means a tremendous amount of relief to the communities on Long Island they've terrorized by using machetes to murder teenagers. Our work over the last few years on the FBI Long Island Gang Task Force illustrates how vitally important it is to partner with those communities, gain their trust, and doggedly investigate these deplorable crimes. We've seen a vast improvement, but I want the community to know we're not going anywhere, our work is not done. If we can keep the lines of communication open, we can stop the violence before it turns deadly. Reach out and know we're here to help.”
“This investigation outlines the strategy used to kidnap, assault and murder six individuals by alleged members of MS-13. Each act is distinctive, but all are clear examples of the charged extreme violence and savagery of the defendants. I commend our law enforcement partners for their diligent and meaningful work,” stated DEA Special Agent-in-Charge Donovan.
“This indictment strikes yet another heavy blow to MS-13 and will further dismantle the brutal gang that terrorized so many communities,” stated District Attorney Singas. “Thanks to the relentless and collaborative efforts of law enforcement at the federal, state, and local levels MS-13 is on the run, gang violence is down, and our communities are safer. I commend the US Attorney’s Office, the FBI, DEA and NCPD for their outstanding work bringing this case.”
“This indictment is another step forward in eradicating the vicious MS-13 gangs from our communities which ultimately ensures the safety of our neighborhoods and residents. The six victims of gruesome murders are a stark reminder that we must continue our enforcement of all illegal gangs and never stop pursuing justice. I congratulate all of the investigators and their respective agencies for their hard work and dedication, who continue to work together to bring an end to this violence,” stated NCPD Commissioner Ryder.
As detailed in the indictment and in the government’s detention letter, in 2016 and 2017 the Sailors and Hollywood cliques of the MS-13 gang, both of whom had a significant presence in the Roosevelt and Freeport areas of Nassau County, collaborated in the criminal activities on behalf of the MS-13, including the murders of suspected rival gang members.
Murder of Oscar Acosta
Torres is charged in connection with his leadership role in the murder of 19-year- old Oscar Acosta, who was suspected of associating himself with the MS-13’s principal rival on Long Island, the 18th Street gang. Torres allegedly ordered a “greenlight,” or authorization, to kill Acosta and assigned specific roles for other Sailors to the plan and carry out the murder. On April 29, 2016, those MS-13 members lured Acosta to a wooded area near an elementary school in Brentwood. Once there, they brutally beat Acosta with tree limbs, knocking him unconscious. They then bound Acosta’s hands and feet, and coordinating with the local Sailors clique leader in Brentwood, moved Acosta to a more secluded area near an abandoned psychiatric hospital. They carried him into the woods behind a warehouse and stabbed and slashed him to death with a machete. The MS-13 members then buried Acosta’s body in a shallow grave, which was discovered in September 2016.
Murder of Kerin Pineda
The indictment charges Gonzalez, Guevara-Castro, Lopez-Morales, Morales-Lopez, Sosa-Guevara and Torres with the murder of 20-year-old Kerin Pineda, who was believed to be a member of the rival 18th Street gang. Torres allegedly ordered the “greenlight” for Pineda, marking him for death. Members of the Sailors clique coordinated with members of the Hollywood clique and devised the plan. On May 21, 2016, MS-13 members, armed with machetes, lured Pineda to a secluded wooded area near the Merrick-Freeport border. Torres, Lopez-Morales and Sosa-Guevara allegedly acted as lookouts for police and stayed in contact with the MS-13 members in the woods while they waited for Pineda. When Pineda arrived, he was surrounded and violently attacked by the MS-13 members, including both charged juveniles, who each took turns hacking and slashing him with their machetes. Pineda’s corpse was buried in a hole that had been dug the day before. Before leaving the scene, the MS-13 members contacted the lookouts who advised them that they could safely leave.
Murder of Josue Amaya-Leonor
Hollywood clique members Alfaro, Blanco, Gonzalez and Lopez-Morales are charged in connection with their roles in the murder of 19-year-old Josue Amaya-Leonor on September 4, 2016 because of his perceived association with the 18th Street gang. Amaya-Leonor was lured to a secluded wooded area deep into the Roosevelt Preserve to smoke marijuana. Once there, he was allegedly surrounded by the machete-wielding MS-13 members – including one of the charged juveniles – struck repeatedly and killed. The MS-13 members dug a hole and buried Amaya-Leonor’s body, which was not found until May 2018.
Murder of Javier Castillo
Torres is charged for his role in authorizing the murder of 15-year-old Javier Castillo on October 10, 2016 for his perceived association with the 18th Street gang. Members of the Sailors clique in Brentwood convinced Castillo, who lived in Central Islip, to go with them to Cow Meadow Park, a secluded area in Freeport, to smoke marijuana. Once there, the MS-13 members, including one of the charged juveniles, allegedly attacked and killed Castillo, each taking turns hacking him with a machete. Torres also served as the lookout for police in the area during the murder. The MS-13 members dug a hole and buried Castillo’s body, which was not discovered until October 2017.
Murder of Carlos Ventura-Zelaya
Alfaro is charged with the October 14, 2016 murder of 24-year-old Carlos Ventura-Zelaya in Roosevelt. Ventura-Zelaya had been marked for death by the MS-13 because of his suspected membership in the rival 18th Street gang. On the night of the murder, Alfaro and other MS-13 members spotted Ventura-Zelaya on the street in Roosevelt. Alfaro, armed with a 9mm handgun, got out of the car, approached Ventura-Zelaya, and allegedly fired all nine rounds from the gun, striking and killing Ventura-Zelaya.
Murder of Angel Soler
The racketeering charges against Hollywood clique members Lopez-Morales and Sosa-Guevara include the July 21, 2017 murder of 15-year-old Angel Soler and an August 2017 conspiracy to kidnap a victim identified in the indictment as John Doe #3. Soler was a suspected 18th Street gang member, and Sosa-Guevara allegedly ordered his murder. Lopez-Morales and other MS-13 members allegedly carried out the murder, luring Soler to wooded lot near Milburn Creek in Roosevelt to smoke marijuana. The group attacked Soler with machetes and a pickaxe, and buried his body in a shallow grave. The following day, MS-13 members went back to lay cement over Soler’s body to better conceal it.
Kidnapping Conspiracy
Just weeks after the Soler murder, Lopez-Morales and Sosa-Guevara allegedly planned the kidnapping, assault, and/or murder of John Doe #3, an MS-13 member who had violated the rules of the gang. Specifically, Sosa-Guevara instructed Lopez-Morales and two other MS-13 members to kidnap John Doe #3 and wait for further guidance from MS-13 leadership to kill or brutally assault him. On August 6, 2017, Lopez-Morales and the other gang members’ plan to kidnap John Doe #3 was foiled by law enforcement, who had been intercepting the calls arranging the attack, and Lopez-Morales was taken into custody.
Attack on Suspected Rivals
The indictment charges Hollywood clique members Alfaro and Gonzalez with attacking a group of males who had gathered in front of a house in Brentwood on July 18, 2016. That night, the MS-13 members allegedly agreed to drive around the area “hunting” for rival gang members to kill. Four of the gang members, including Alfaro, were selected to participate, armed with two handguns and a machete. While driving around Brentwood that night, the MS-13 members spotted a group of males whom they believed were members of the rival Bloods street gang. Alfaro and two other MS-13 members concealed their faces with bandanas, ran over to the group and attacked them. One victim, identified in the indictment as John Doe #1, was shot in the leg. Another victim, identified in the indictment as John Doe #2, was shot and slashed in the head, face and arms. John Doe #2 sustained disfiguring injuries, but survived the attack.
Cocaine and Marijuana Distribution
The indictment charges various members of the Sailors clique with conspiring to distribute cocaine and marijuana, and members of the Hollywood clique with conspiring to distribute marijuana, stemming from the MS-13 cliques’ alleged street-level sales of cocaine and marijuana on Long Island, the proceeds of which were used to help finance the MS-13’s criminal operations.
Additionally, during the execution of court-authorized search and seizure warrants at the North Carolina residences of both Blanco and Gonzalez yesterday, law enforcement agents and officers recovered additional evidence, including machetes, firearms, ammunition, narcotics, and MS-13 related paraphernalia.
The charges in the indictment are allegations, and the defendants are presumed innocent unless and until proven guilty. If convicted, each defendant faces up to life in prison, and is eligible for the death penalty.
In August 2019, Attorney General Barr created Joint Task Force Vulcan to carry out the recommendations of the MS-13 subcommittee formed under the Attorney General’s Transnational Organized Crime Task Force, which was the result of President Trump’s February 2017 Executive Order directing the Departments of Justice, State, and Homeland Security, and the Office of the Director of National Intelligence to coordinate a whole-of-government approach to dismantle transnational criminal organizations, such as MS-13, and restore safety for the American people. The principle purpose of JTFV is to coordinate and lead the efforts of the Justice Department and U.S. law enforcement agencies against MS-13 in order to dismantle the group.
This indictment is the latest in a series of federal prosecutions by the United States Attorney’s Office for the Eastern District of New York targeting members of the MS-13, a violent transnational criminal organization. The MS-13’s leadership is based in El Salvador and Honduras, but the gang has thousands of members across the United States, comprised primarily of immigrants from Central America. With numerous branches, or “cliques,” the MS-13 is the largest and most violent street gang 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 55 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, comprising agents and officers of the FBI, the NCPD, the SCPD, the Nassau County Sheriff’s Department, the Suffolk County Sheriff’s Department, the Suffolk County Probation 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, with assistance from Assistant District Attorney Jared Rosenblatt of the Nassau County District Attorney’s Office.
The Defendants:
CARLOS ALFARO (“Russo”)
Age: 23
Roosevelt, New YorkJOSE MOISES BLANCO (“Cuervo”)
Age: 30
Salisbury, North CarolinaOSEAS GONZALEZ (“Manota” and “Cordero”)
Age: 28
Charlotte, North CarolinaJOSE JONATHAN GUEVARA-CASTRO (“Suspechoso”)
Age: 25
Formerly of Roosevelt, New York, and Annapolis, MarylandVICTOR LOPEZ-MORALES (“Persa”)
Age: 32
Roosevelt, New YorkEVER MORALES-LOPEZ (“Kyen,” “Inke,” and “White Boy”)
Age: 26
Freeport, New YorkDAVID SOSA-GUEVARA (“Risky”)
Age: 28
Roosevelt, New YorkKEVIN TORRES (“Quieto” and “Inquieto”)
Age: 24
Freeport, New YorkE.D.N.Y. Docket No. 20-CR-251 (JFB)
Jewelry Wholesaler Indicted for $200 Million Ponzi SchemeRead the Press Release
An indictment was unsealed today in federal court in Brooklyn charging Gregory Altieri, the president of LNA Associates, with one count of wire fraud for allegedly running a two-year, $200 million Ponzi scheme based on nonexistent wholesale jewelry deals and false promises of inflated returns. Altieri was arrested today and will be arraigned this morning via video conference before United States Magistrate Judge James Orenstein.
Seth D. DuCharme, Acting United States Attorney for the Eastern District of New York, and William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the arrest and charge.
According to the indictment, beginning in August 2017, Altieri solicited between $75 million to $85 million from over 80 investors from Queens, Staten Island, Long Island and elsewhere, allegedly to purchase jewelry at “closeout” prices and resell it at a high profit. Altieri promised returns of between 30 and 70 percent in a matter of months. While Altieri initially purchased some jewelry with investors’ money, in approximately May 2018 he began to use new investors’ money to pay earlier investors, representing to the latter group that they were receiving returns on their investments. These purported “returns” were used by Altieri to convince the earlier investors to keep their money with LNA Associates, by “rolling over” their investments into new investments based on false promises to use this money to purchase additional jewelry. By January 2020, when Altieri stopped making paybacks to investors, he owed them approximately $200 million based on the falsely inflated promised returns.
“As alleged, Altieri defrauded investors, including retirees living off their pensions, by representing that he was buying and reselling jewelry for big profits, which was a lie,” stated Acting United States Attorney DuCharme. “This Office is committed to protecting the investing public from con artists who would prey upon our community.”
“Stealing millions based on false promises made to retirees who rely on their pensions is contemptible. We allege Mr. Altieri knew he was going to have problems paying off his first round of investors, but he kept his con going anyway. As a result of his actions, the FBI has provided him with stainless steel jewelry for his wrists today, and a guarantee of working to hold him and others who commit similar frauds accountable for their behavior,” stated FBI Assistant Director-in-Charge Sweeney.
The charge in the indictment is an allegation, and the defendant is presumed innocent unless and until proven guilty. If convicted, Altieri faces a maximum sentence of 20 years’ imprisonment.
The government’s case is being handled by the Office’s Business & Securities Fraud Section. Assistant United States Attorneys Andrey Spektor and Lindsay K. Gerdes are in charge of the prosecution, assisted by EDNY Special Agent Martin Sullivan.
The Defendant
GREGORY ALTIERI
Age: 53
Melville, New YorkE.D.N.Y. Docket No. 20-CR-249 (BMC)
Former MS-13 Gang Leader in Queens Indicted for Murder in-Aid-of RacketeeringRead the Press Release
An indictment was unsealed today in federal court in Brooklyn charging Marcelo Esquivel with murder in-aid-of racketeering and causing death through the use of a firearm in connection with the fatal shooting of Daniel Licona-Gonzalez on July 2, 2012. At the time of the murder, Esquivel was the leader of the Centrales Locos Salvatruchas clique of La Mara Salvatrucha, also known as the MS-13, a transnational criminal organization, in Jamaica, Queens. Esquivel was arrested yesterday and will be arraigned this afternoon via teleconference before United States Magistrate Judge Roanne L. Mann.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), Peter C. Fitzhugh, Special Agent-in-Charge, Homeland Security Investigations, New York Field Office (HSI), and Dermot F. Shea, Commissioner, New York City Police Department (NYPD), announced the charges.
“As alleged, Esquivel ordered the murder of another human being in furtherance of the vicious code of the MS-13 gang, and the life of an 18-year-old man was ended by co-conspirators carrying out the defendant’s death wish,” stated United States Attorney Donoghue. “The Eastern District will continue to do everything possible to crush the MS-13 and Esquivel’s arrest sends a powerful message that the passage of time will not deter this Office and our law enforcement partners from investigating, prosecuting and holding accountable anyone who commits violent crimes on behalf of the gang.”
“A man standing in the street was shot in the head, and later died because two members of MS-13 sought out a twisted type of gravitas in their violent gang,” stated FBI Assistant Director-in-Charge Sweeney. “The men rode a bicycle to carry out their orders allegedly given by Mr. Esquivel, an oddly childlike behavior with deadly consequences. Our FBI New York Metro Safe Streets Task Force is determined to pursue the leaders of this despicable gang, regardless of how much time has passed since their crimes took place.”
“As an MS-13 gang leader, Esquivel allegedly used his authority to order a hit on a rival gang member. Using the gun allegedly provided by Esquivel, two MS-13 gang members took the life of another human being,” stated HSI Special Agent-in-Charge Fitzhugh. “A human life is a human life, regardless of gang affiliation, and gang on gang violence will not be tolerated. HSI will continue to collaborate with the FBI and NYPD to take murderers off the street and try to bring some solace to the victims’ families.”
“Our NYPD investigators, with our state and federal partners, as shown in this case will relentlessly seek justice against gangs no matter when or where their brutal violence is carried out,” stated NYPD Commissioner Shea.
As set forth in court filings, on July 2, 2012, Esquivel directed two MS-13 members to murder a member of the rival Latin Kings gang and provided them with a gun. Coconspirator-1 was a new member of the gang and hoped to earn respect within the gang by carrying out an act of violence. Coconspirator-1 and Coconspirator-2 then set out on a bicycle to find a Latin King to murder. Coconspirator-2 rode the bicycle and Coconspirator-1 stood on the bicycle’s back pegs. They went to a location that they understood was Latin Kings’ territory to find their target. In the vicinity of Lowe Court and 149th Street in Jamaica, they saw a group of men that they believed were Latin Kings. One of the Coconspirators yelled, “La Mara,” a reference to his gang, and shot Licona-Gonzalez in the head. The victim died the following day.
Today’s charges are 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. The MS-13’s leadership is based in El Salvador and Honduras, but the gang has thousands of members across the United States, comprised primarily of immigrants from Central America. 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 45 murders in the district and has convicted dozens of MS-13 leaders and members in connection with those murders. These prosecutions are the product of investigations led by our law enforcement partners.
The charges in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty.
If convicted, Esquivel faces a mandatory sentence of life imprisonment and is eligible for the death penalty.
The government’s case is being handled by the Office’s Organized Crime and Gangs Section. Assistant United States Attorney Nadia E. Moore is in charge of the prosecution.
The Defendant:
MARCELO ESQUIVEL (also known as “Profugo” and “Baby”)
Age: 31
Jamaica, New YorkE.D.N.Y. Docket No.: 20-CR-250 (MJB)
Attorney General William P. Barr Announces the Designation of Seth D. DuCharme as Acting United States Attorney for the Eastern District of New YorkRead the Press Release
WASHINGTON – Attorney General William P. Barr announced today the designation of Seth D. DuCharme as Acting U.S. Attorney for the Eastern District of New York, pursuant to 5 U.S.C. § 3345(a)(3), effective July 10, 2020.
“Seth has served the Department with distinction during his time at Main Justice,” stated Attorney General Barr. “He is a talented and experienced prosecutor who manages with a steady hand. His experience in prosecuting violent crime, terrorism, and public corruption, will serve him well in his return to New York to lead the office. The Deputy Attorney General and I look forward to working with him in his new role.”
“I am deeply honored to return to my home in the Eastern District of New York to serve as the Acting United States Attorney,” stated Mr. DuCharme. “Applying all of my experience over the many years living here and working alongside some of the most outstanding people in the Department of Justice, I am firmly committed to serving our community and our country to the highest standards and in the finest tradition of this Office. I wish my predecessor, Rich Donoghue, great success as he heads to Washington, D.C., to help lead the Department.”
Mr. DuCharme will serve as chief federal law enforcement officer for a district comprising Brooklyn, Queens and Staten Island in New York City, and Nassau and Suffolk Counties on Long Island. The district serves over eight million residents. Its Criminal Division has approximately 115 Assistant U.S. Attorneys, and its Civil Division has approximately 60 Assistant U.S. Attorneys.
Mr. DuCharme most recently served in Main Justice as the Principal Associate Deputy Attorney General. From March 2019 to December 2019, Mr. DuCharme served as a Counselor to Attorney General Barr. He worked with the Deputy Attorney General and the Attorney General to supervise and coordinate the work of all of the Department’s components, including all 93 United States Attorney’s Offices. Additionally, he helped to coordinate national initiatives against fraud, opioid trafficking, transnational organized crime, international terrorism and other national security priorities.
Prior to his work at Main Justice, Mr. DuCharme served as the Chief of the Criminal Division in the U.S. Attorney’s Office for the Eastern District of New York, where he supervised the investigations and prosecutions by the Office across a wide range of practice areas, including corporate and securities fraud, terrorism, cybercrime, public corruption, international narcotics trafficking, civil rights violations, and violent and organized crime.
Mr. DuCharme first joined the U.S. Attorney’s Office for the Eastern District of New York in March 2008 and has served in the General Crimes, Violent Crimes and Terrorism, and National Security and Cybercrime Sections. He also has served as the Office’s National Security Cyber Specialist and representative on the Anti-Terrorism Advisory Council.
Mr. DuCharme is a 2003 graduate of Fordham University School of Law, where he was selected as a Stein Scholar and as an editor on the Fordham Law Review. He graduated cum laude, Order of the Coif. Mr. DuCharme received his B.A. from Hamilton College in 1992, with Honors in English literature.
Before attending law school, Mr. DuCharme served as a Deputy U.S. Marshal in Brooklyn from 1996 to 2000.
For more information about the U.S. Attorney’s Office for the Eastern District of New York, please visit https://www.justice.gov/usao-edny.
First Assistant United States Attorney Mark J. Lesko will remain in that role.
Attorney General William P. Barr Announces the Appointment of Richard P. Donoghue as Principal Associate Deputy Attorney General; Designation of Seth D. DuCharme as Acting U.S. Attorney for the Eastern District of New YorkRead the Press Release
Today, Attorney General William P. Barr announced the appointment of U.S. Attorney Richard Donoghue as Principal Associate Deputy Attorney General. Current Principal Associate Deputy Attorney General Seth D. DuCharme has been designated as Acting U.S. Attorney for the Eastern District of New York (E.D.N.Y.), pursuant to 5 U.S.C. § 3345(a)(3). The U.S. Attorney for the Eastern District of New York is the chief federal law enforcement officer for a district comprising Brooklyn, Queens, and Staten Island in New York City, and Nassau and Suffolk Counties on Long Island, with over six million residents.
“Rich has served with distinction and integrity for many years in the Eastern District of New York, earning a well-deserved reputation throughout New York City and Long Island as an outstanding prosecutor with second-to-none judgment,” said Attorney General William P. Barr. “Throughout his time as an Assistant U.S. Attorney, Chief of the Criminal Division for E.D.N.Y., and U.S. Attorney, Rich’s intellect, decisiveness, management style, and dedication to the job has led to him successfully prosecuting many high-profile violent-crime cases (including against MS-13 and other violent gangs), drug trafficking offenses, and white-collar crimes. His experience will be a huge asset to the Office of the Deputy Attorney General, and we look forward to working with him here at Main Justice.”
Since January 2018, Richard has served as U.S. Attorney for the Eastern District of New York. During his tenure, he oversaw a number of high-profile cases of national significance. Under his leadership, his office successfully prosecuted MS-13 racketeering cases and secured convictions against Sinaloa Cartel leader Joaquin (El Chapo) Guzman, Keith Raniere, and high-ranking members of NXIVM, an organization that was engaged in sex trafficking and forced labor. Additionally, Richard has overseen the ongoing prosecutions of Chinese telecommunications company Huawei and several subsidiaries on racketeering charges and Huawei CFO Wanzhou Meng on fraud charges.
Previously, from 2000 to 2011, Richard served as an AUSA in the Eastern District of New York, including serving as Chief of the Criminal Division and Chief of the Long Island Criminal Division. While at the office, he received the New York City Bar Association’s Henry L. Stimson Medal in 2007 and the Eastern District Association’s 2009 Charles E. Rose Award. Prior to that, he served on active duty in the U.S. Army JAG Corps, where he held positions including Military Magistrate Judge, Prosecutor, Defense Counsel, and Contract Litigator. He also served as a paratrooper in the 82nd Airborne Division.
Richard received his B.A., cum laude, from Hofstra University and his J.D. from St. John’s University School of Law.
Seth DuCharme is a veteran of the U.S. Attorney’s Office for the Eastern District of New York and returns to E.D.N.Y. after serving in senior positions at Main Justice. In addition to being Principal Associate Deputy Attorney General, from March 2019 to December 2019, Seth served as a Counselor to the Attorney General. In those positions, he worked with the Attorney General and the Deputy Attorney General to supervise and coordinate the work of all of the Department’s components, including all 93 United States Attorney’s Offices. Additionally, he helped to coordinate national initiatives against transnational organized crime and violent gang elements and worked closely with the Department’s components on countering international terrorism and other national security threats.
“Seth has served the Department with distinction during his time at Main Justice,” said Attorney General William P. Barr. “He is a talented and experienced prosecutor who manages with a steady hand. His experience in prosecuting violent crime, terrorism, and public corruption, will serve him well in his return to New York to lead the office. The Deputy Attorney General and I look forward to working with him in his new role.”
Prior to his work at Main Justice, Seth was the Chief of the Criminal Division for E.D.N.Y., where he supervised investigations and prosecutions by the office across a wide range of practice areas, including corporate and securities fraud, terrorism, cybercrime, public corruption, international narcotics trafficking, civil rights violations, and violent and organized crime. He first joined E.D.N.Y. in March 2008 and served in the General Crimes, Violent Crimes and Terrorism, and National Security and Cybercrime Sections. He also served as the Office’s National Security Cyber Specialist and its representative on the Anti-Terrorism Advisory Council.
Seth is a 2003 graduate of Fordham University School of Law, where he was selected as a Stein Scholar and also as an editor on the Fordham Law Review. He graduated cum laude, Order of the Coif. Seth received his B.A. from Hamilton College in 1992, with Honors in English literature.
For more information about the U.S. Attorney’s Office for the Eastern District of New York, please visit https://www.justice.gov/usao-edny.
Staten Island Business Owner Arrested for Violating the Defense Production Act and Defrauding CustomersRead the Press Release
A criminal complaint was unsealed today in federal court in Brooklyn charging Kevin Jay Lipsitz with violations of the Defense Production Act and wire fraud. Lipsitz allegedly sold personal protective equipment (PPE) and other health and medical materials, some of which were designated as scarce due to the COVID-19 pandemic, at prices far exceeding prevailing market prices. Lipsitz also allegedly lied to customers about his inventory of such scarce materials and his ability to timely ship those items to customers. Lipsitz is the Chief Executive Officer and apparent sole owner of SuperGoodDeals.com Inc. (SGD), a New York corporation located in Staten Island.
Lipsitz was arrested today and is scheduled to make his initial appearance via teleconference this afternoon before United States Magistrate Judge Roanne L. Mann. In a separate action, the Federal Trade Commission has filed civil charges against Lipsitz.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, Craig Carpenito, head of the Department of Justice’s nationwide COVID-19 Hoarding and Price Gouging Task Force, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), Peter C. Fitzhugh, Special Agent-in-Charge, Homeland Security Investigations, New York (HSI), and Philip R. Bartlett, Inspector-in-Charge, United States Postal Inspection Service, New York Division (USPIS), announced the arrest and charges.
According to court filings, between February 2020 and April 2020, Lipsitz and SGD accumulated a large stockpile of PPE and other medical products, including facemasks and N-95 and KN-95 filtering face-piece respirators. Lipsitz then sold the items at markups ranging from 150 percent to over 500 percent above his purchase price. To induce customers to purchase his products, Lipsitz misrepresented SGD’s inventory and ability to quickly fill and ship orders. On the SGD website, Lipsitz promised customers that they could “pay today” and their orders would ship “tomorrow.” Lipsitz would issue same day shipping confirmations which included tracking numbers. Nevertheless, Lipsitz did not deliver the PPE in the promised timeframe, often shipping the merchandise weeks after orders were placed and after customers lodged complaints or tried to cancel their orders.
“The defendant allegedly took advantage of the pandemic and the public’s urgent need for life-saving PPE to enrich himself illegally,” stated United States Attorney Donoghue. “Our Office and the Department’s COVID-19 Hoarding and Price Gouging Task Force will continue working tirelessly to put an end to such conduct.” Mr. Donoghue expressed his grateful appreciation to the United States Attorney’s Office in New Jersey, and the Federal Trade Commission for their assistance in the case.
“We’re continuing to work diligently across the country to find those people who would turn a deadly health crisis into an opportunity to make illicit profits,” stated Carpenito. “As alleged in the complaint, this defendant not only overcharged for desperately needed personal protective equipment, he lied to his customers about how fast he could ship their orders, taking their money up front and leaving them with nothing to show for it. This is precisely the type of conduct the Task Force will continue to aggressively investigate and prosecute.”
“Long before the citizens of New York City fully anticipated the impact of the COVID pandemic, Lipsitz was busy stockpiling essential PPE that would soon become a scarce commodity. At a time when these items were needed for a critical health crisis, he then illegally marked up the price—in some cases by a 500% margin—for the benefit of himself and himself alone. When this country faces a crisis, we are supposed to stand together as a community and push through it, not turn our backs, gouge fellow citizens, and try to profit from it. The alleged behavior is a disgrace,” stated FBI Assistant Director-in-Charge Sweeney.
“Price gouging PPE to make a profit during a global pandemic is just part of Lipsitz’ alleged crimes. He is also alleged to have taken advantage of customers through false promises and fraud,” stated HSI Special Agent-in-Charge Fitzhugh. “HSI New York, working with the FBI and DOJ’s COVID-19 Hoarding and Price Gouging Task Force, will continue to arrest those whose criminal acts hurt a community in need.”
“At a time when life-saving PPE was needed to fight COVID-19, the defendant chose personal greed over the life and safety of first responders and the heroes in the medical community. Price gauging, hoarding, and lying to consumers will always be uncovered by law enforcement; and those participating in such schemes will be brought to justice,” stated USPIS Inspector-in-Charge Bartlett.
The charges in the complaint are allegations, and the defendant is presumed innocent unless and until proven guilty.
Attorney General William P. Barr created the COVID-19 Hoarding and Price Gouging Task Force, led by Craig Carpenito, United States Attorney for District of New Jersey, who is coordinating efforts with the Antitrust Division and U.S. Attorneys across the country wherever illegal activity involving PPE occurs. The Secretary of Health and Human Services has issued a Notice designating categories of health and medical supplies that must not be hoarded or sold for exorbitant prices.
Please report COVID-19 fraud, hoarding or price-gouging to the National Center for Disaster Fraud’s National Hotline at (866) 720-5721, or e-mail: [email protected].
The government’s case is being handled by the Office’s Business & Securities Fraud and General Crimes Sections. Assistant United States Attorneys Julia Nestor and Andrew Wang are in charge of the prosecution.
The Defendant:
KEVIN JAY LIPSITZ
Age: 61
Staten Island, New YorkE.D.N.Y. Docket No. 20-MJ-509
Brooklyn Man Charged with Attempted Hobbs Act Robbery of Pharmacy and Stabbing EmployeeRead the Press Release
Rayvaughn Williams was arrested today on a criminal complaint filed in federal court in Brooklyn charging him with the attempted robbery of the Canarsie Plaza Pharmacy in Brooklyn during which an employee of the pharmacy was repeatedly stabbed. Vaughn’s initial appearance is scheduled for this afternoon via video conference before United States Magistrate Judge Roanne L. Mann.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, John B. DeVito, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and Dermot F. Shea, Commissioner, New York City Police Department (NYPD), announced the arrest and charges.
As detailed in the complaint, on August 12, 2019, Williams entered the pharmacy and claimed he was there to pick up a prescription. When the employee could not find a record of the prescription, Williams removed a knife from a plastic bag he was carrying and demanded money. When the employee tried but failed to open the register, Williams vaulted over the counter and stabbed the employee repeatedly. The employee was seriously wounded but survived the attack, which was recorded on the pharmacy’s security cameras.
“As alleged, Williams brutally stabbed a victim who had offered no resistance to the attempted robbery of the pharmacy,” stated United States Attorney Donoghue. “Such wanton disregard for life will not be tolerated and will be prosecuted to the full extent of the law. I commend the ATF Special Agents and the NYPD detectives for their outstanding investigative work that led to the identification and arrest of the defendant.”
“This defendant, as alleged, not only attempted to rob a pharmacy servicing the Brooklyn community, but repeatedly stabbed an employee, causing serious injury. Thanks to the tireless work of the men and women of the ATF/NYPD Robbery Task Force, he no longer poses a threat to public safety. I would like to thank the United States Attorney’s Office for their work in prosecuting this case,” stated ATF Special Agent-in-Charge DeVito.
“Our joint work in this case has led to the arrest of a violent robbery suspect. This collaborative law enforcement effort shows our relentless commitment to justice,” stated NYPD Commissioner Shea.
The charges in the complaint are allegations, and the defendant is presumed innocent unless and until proven guilty. If convicted, the defendant faces up to 20 years in prison.
The government’s case is being handled by the Office’s General Crimes Section. Assistant United States Attorney Robert M. Pollack is in charge of the prosecution.
The Defendant:
RAYVAUGHN WILLIAMS
Age: 24
Brooklyn, New YorkE.D.N.Y. Docket No.: 20-MJ-507
United States Citizen Charged with Violating the Kingpin ActRead the Press Release
A complaint was unsealed yesterday in the Eastern District of New York charging Bryant Espinoza Aguilar, the stepson of Sinaloa Cartel leader and notorious fugitive Rafael Caro Quintero, with conspiring to commit violations of the Kingpin Act, an economic sanctions program against narcotics traffickers that is administered and enforced by the Office of Foreign Assets Control (OFAC) of the United States Department of Treasury. Specifically, Espinoza is charged with assisting Caro Quintero and his common law wife by putting their assets in his own name, thereby violating OFAC’s prohibition on United States Citizens from conducting financial transactions with specially designated narcotics traffickers.
The complaint was announced by Richard P. Donoghue, United States Attorney for the Eastern District of New York; Timothy J. Shea, Acting Administrator, Drug Enforcement Administration (DEA); Peter C. Fitzhugh, Special Agent-in-Charge, Homeland Security Investigations, New York Field Office (HSI); Dermot F. Shea, Commissioner, New York City Police Department (NYPD); and Keith M. Corlett, Superintendent, New York State Police (NYSP), announced the charge.
According to court filings, OFAC designated Caro Quintero as a specially designated narcotics trafficker in 2000, and designated Caro Quintero’s wife as a specially designated narcotics trafficker in 2016. The OFAC designations stem from Caro Quintero’s criminal history as the leader of the Caro Quintero drug trafficking organization, a faction of the Mexican organized crime syndicate known as the Sinaloa Cartel. Between January 1980 and January 2017, Caro Quintero led a continuing criminal enterprise responsible for importing into the United States and distributing massive amounts of illegal narcotics and conspiring to murder persons who posed a threat to his narcotics enterprise. The murder conspiracy includes Caro Quintero’s kidnapping and murder of DEA Special Agent Enrique “Kiki” Camarena in Guadalajara, Jalisco, Mexico in February 1985.
On August 9, 2013, a Mexican tribunal ruled that Caro Quintero could be released from custody because he had been tried improperly in a federal tribunal, rather than a state tribunal. The Mexican tribunal’s finding was later overturned, but Caro Quintero remains at large as a fugitive from Mexican and U.S. justice.
The complaint charges Espinoza Aguilar transferred property owned by his mother into his own name and bribed a public official to change the name of the property’s owner on public registry documents to protect the property from being restrained as a result his mother’s OFAC designation.
“As alleged, the defendant acted as a straw man to protect property purchased with the illicit, blood-stained proceeds of his stepfather’s drug trafficking empire from being seized by the government,” stated United States Attorney Donoghue. “This Office and our partners at the Drug Enforcement Administration are using every legal measure at our disposal to hold accountable those enablers of Caro Quintero and bring them to justice.” Mr. Donoghue expressed his grateful appreciation to the DEA’s Raleigh Division Office for its assistance on the case.
“On February 7, 1985, DEA was forever changed when Special Agent Enrique “Kiki” Camarena was kidnapped, tortured, and murdered in Guadalajara, Mexico,” stated DEA Acting Administrator Shea. “We will never forget his sacrifice and remain steadfast in our pursuit of the man responsible for his death, Rafael Caro Quintero, and those that continue to protect and enable his criminal activities. Let today’s action be a clear message to Caro Quintero, his family, and his criminal associates — we will stop at nothing in our pursuit for justice for SA Camarena.”
“While his stepfather, a Sinaloa Cartel leader, was specially designated by OFAC as a narcotics trafficker twenty years ago, Espinoza Aguilar is alleged to have violated the Kingpin Act by transferring his stepfather’s assets into his name, seeking to evade the sanctions program,” stated HSI Special Agent-in-Charge Fitzhugh. “HSI’s partnership with the DEA and its Strike Force is one in which collaboration is key, and will continue to focus on arresting those who pursue ways to circumvent the law and hide their criminal acts.”
“I commend the dedicated teamwork of the New York Strike Force which was instrumental in working to bring this suspect to justice. This defendant attempted to protect and hide the profits of dangerous narcotics that were our communities, profits made at the expense of the safety of our communities. We will continue to be vigilant in working together with our law enforcement partners to keep our neighborhoods safe, to keep harmful narcotics off our streets and those who commit these types of crimes, or protect those who do, are held accountable,” stated NYSP Superintendent Corlett.
“This case is another example of our joint responsibilities to eradicate international drug trafficking. Our NYPD detectives, and state and local partners, stop at nothing to stem the flow of illegal narcotics,” stated NYPD Commissioner Shea.
The 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 Drug Enforcement 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, New York City Police Department, New York State Police, Homeland Security Investigations, 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, U.S. 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 charges in the complaint are allegations, and the defendant is presumed innocent unless and until proven guilty.
The government’s case is being handled by the Office’s International Narcotics and Money Laundering Section. Assistant United States Attorneys Gina M. Parlovecchio, Michael Robotti and Erin Reid are in charge of the prosecution.
The Defendant:
BRYANT ESPINOZA AGUILAR
Age: 30
United States and MexicoE.D.N.Y. Docket No. 20-MJ-458
Two Individuals Charged for Their Role in Bribery and Money Laundering Scheme Involving Former High-Ranking Government Official in PanamaRead the Press Release
A criminal complaint was unsealed today in federal court in Brooklyn, New York charging Luis Enrique Martinelli Linares (Luis Martinelli Linares) and Ricardo Alberto Martinelli Linares (Ricardo Martinelli Linares), for their roles in a massive bribery and money laundering scheme involving Odebrecht S.A. (Odebrecht), a Brazil-based global construction conglomerate. Luis Martinelli Linares and Ricardo Martinelli Linares were arrested today at el Aeropuerto Internacional la Aurora in Guatemala.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, Brian C. Rabbitt, Acting Assistant Attorney General of the Justice Department’s Criminal Division, and William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the charges.
On December 21, 2016, Odebrecht pleaded guilty in the Eastern District of New York to a criminal information charging it with conspiracy to violate anti-bribery provisions of the Foreign Corrupt Practices Act for its involvement in the bribery and money laundering scheme.
The overarching Odebrecht scheme involved the payment of more than $700 million in bribes to government officials, public servants, political parties and others in Panama and other countries around the world to obtain and retain business for the company. The defendants are alleged to have participated in the scheme by, among other means, serving as intermediaries for approximately $28 million in bribe payments made by and at the direction of Odebrecht to a then high-ranking government official in Panama (Panama Government Official), who was a close relative of the defendants. Luis Martinelli Linares and Ricardo Martinelli Linares were each charged with one count of conspiracy to commit money laundering.
As alleged in the complaint, between approximately August 2009 and January 2014, the defendants facilitated the payment of bribes from Odebrecht to or for the benefit of the Panama Government Official by taking a number of steps that included opening and managing secret bank accounts held in the names of shell companies in foreign jurisdictions. These secret bank accounts were used to receive, transfer and deliver the bribe payments. The defendants served as the signatories on certain of the shell company bank accounts and personally sent and caused to be sent wire transfers through the structure of shell company bank accounts to conceal and spend bribery proceeds. Many of these financial transactions were in U.S. dollars and were made through U.S. banks, some of which were located in New York.
The charges in the complaint announced today are allegations, and the defendants are presumed innocent unless and until proven guilty.
The case is being prosecuted by Assistant United States Attorneys Julia Nestor and Alixandra Smith of the Office’s Business and Securities Fraud Section, Criminal Division Fraud Section Trial Attorney Michael Culhane Harper and Money Laundering and Asset Recovery Section Trial Attorneys Barbara Levy and Michael Redmann. The FBI’s International Corruption squad in New York investigated this case.
The Criminal Division’s Office of International Affairs provided substantial assistance.
The Defendants:
LUIS ENRIQUE MARTINELLI LINARES
Age: 38
Panama City, PanamaRICARDO ALBERTO MARTINELLI LINARES
Age: 40
Panama City, PanamaE.D.N.Y. Docket No. 20-M-498 (RML)
Two Defendants Charged for Their Role in Bribery and Money Laundering Scheme Involving Former High-Ranking Government Official in PanamaRead the Press Release
A criminal complaint was unsealed today in federal court in Brooklyn, New York, charging Luis Enrique Martinelli Linares (Luis Martinelli Linares) and Ricardo Alberto Martinelli Linares (Ricardo Martinelli Linares) for their roles in a massive bribery and money laundering scheme involving Odebrecht S.A. (Odebrecht), a Brazil-based global construction conglomerate.
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.
The overarching Odebrecht scheme involved the payment of more than $700 million in bribes to government officials, public servants, political parties, and others in Panama and other countries around the world to obtain and retain business for the company. The two individual defendants are alleged to have participated in the scheme by, among other things, serving as intermediaries for approximately $28 million in bribe payments made by and at the direction of Odebrecht to a then high-ranking government official in Panama (Panama Government Official), who was a close relative of the defendants. Luis Martinelli Linares and Ricardo Martinelli Linares were each charged with one count of conspiracy to commit money laundering.
Luis Martinelli Linares and Ricardo Martinelli Linares were arrested at el Aeropuerto Internacional la Aurora in Guatemala on July 6 pursuant to a provisional arrest request from the United States.
As alleged in the complaint, between approximately August 2009 and January 2014, the defendants facilitated the payment of bribes from Odebrecht to or for the benefit of the Panama Government Official by taking a number of steps that included opening and managing secret bank accounts held in the names of shell companies in foreign jurisdictions. These secret bank accounts were used to receive, transfer, and deliver the bribe payments. The defendants served as the signatories on certain of the shell company bank accounts, and personally sent and caused to be sent wire transfers through the structure of shell company bank accounts to conceal and spend bribery proceeds. Many of these financial transactions were in U.S. dollars and were made through U.S. banks, some of which were located in New York.
The charges in the complaint announced today are allegations, and the defendants are presumed innocent unless and until proven guilty.
The FBI’s International Corruption squad in New York investigated this case. 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, and Assistant U.S. Attorneys Alixandra Smith and Julia Nestor of the U.S. Attorney’s Office for the Eastern District of New York are prosecuting the case.
The Criminal Division’s Office of International Affairs provided substantial assistance. The Brazilian Ministerio Publico Federal, Departamento de Polícia Federal, law enforcement authorities in Guatemala including the Public Ministry of Guatemala and Specialized Unit for International Affairs, and law enforcement authorities in El Salvador provided significant cooperation.
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 year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Brooklyn Man Indicted on Cultural Artifacts Smuggling ChargesRead the Press Release
An indictment has been returned in federal court in Central Islip, New York charging Ashraf Omar Eldarir, a U.S. citizen, with smuggling Egyptian cultural property into the United States. Eldarir was previously arrested on a complaint in February 2020 after arriving at John F. Kennedy International Airport (JFK) with three suitcases filled with undeclared Egyptian antiquities. Eldarir will be arraigned at a later date.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, Peter C. Fitzhugh, Special Agent-in-Charge, Homeland Security Investigations (HSI), and Troy Miller, Director of Field Operations, U.S. Customs and Border Protection, New York Field Office (CBP), announced the indictment.
As set forth in court filings, on January 22, 2020, Eldarir arrived at JFK from Egypt with three checked suitcases. Eldarir falsely declared to U.S. Customs and Border Protection (CBP) that he was carrying goods valued at only 300 U.S. dollars. However, when CBP officers opened Eldarir’s suitcases they found 590 bubble and foam-wrapped Egyptian antiquities. When the protective wrapping was opened, loose sand and dirt spilled out, and some of the items smelled of wet earth, indicators that the artifacts had been recently excavated. Among the items recovered by law enforcement officers are gold amulets from a funerary set; a relief with the cartouche of a Ptolemaic king that was originally part of a royal building or temple; wooden tomb model figures with linen garments dating to approximately 1900 BCE; and two complete Roman period funerary stelae of the type found at Kom abu Bellou in Egypt. Eldarir did not produce any of the required documentation from Egypt authorizing the export of the artifacts. Eldarir was charged with one count of smuggling arising from this incident, and one count of smuggling involving an earlier trip in which he smuggled an ancient Egyptian polychrome relief.
“These cultural treasures traveled across centuries and millennia, only to end up unceremoniously stuffed in a dirt-caked suitcase at JFK,” stated United States Attorney Donoghue. “We commend our CBP and HSI partners for their excellent work and, with them, we stand ready to investigate and prosecute those who attempt to profit from the illegal smuggling of irreplaceable ancient artifacts.”
Eldarir’s alleged smuggling of 590 artifacts pillaged from Egypt is yet another example of an individual seeking to profit by stealing history from another nation,” stated HSI Special Agent-in-Charge Fitzhugh. “HSI New York continues to collaborate with our partners at CBP to stop the smuggling of illicit goods through the JFK airport and onto American soil.”
“U.S. Customs and Border Protection is extremely proud to have played an important role in the seizing of these Egyptian antiquities as this would be smuggler attempted to enter the country with his illegally obtained artifacts," stated CBP Director of Field Operations Miller. “CBP’s cooperation with HSI and the Eastern District of New York demonstrates the continuing resolve of law enforcement in the United States to address illegal trafficking in stolen artifacts.”
The charges in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty. If convicted, Eldarir faces a maximum sentence of 20 years’ imprisonment on each count.
The government’s case is being handled by the Office’s General Crimes Section. Assistant United States Attorney Marietou Diouf is in charge of the prosecution. Cultural Property Coordinator Karin Orenstein of the Office’s Civil Division is handling forfeiture matters.
The Defendant:
ASHRAF OMAR ELDARIR (also known as “Omar Eldarir”)
Age: 47
Brooklyn, New YorkE.D.N.Y. Docket No. 20-CR-243 (LDH)
American Airlines Mechanic Arraigned on Indictment Charging Cocaine Importation ConspiracyRead the Press Release
UPDATE
The defendant’s conviction for the conduct described in the press release below was vacated by the United States Court of Appeals for the Second Circuit on January 23, 2026. See 20-CR-219 (DLI) ECF No. 169.
Earlier today, Paul Belloisi, an American Airlines mechanic at John F. Kennedy International Airport (JFK Airport), was arraigned via teleconference before United States Chief Magistrate Judge Cheryl L. Pollak on an indictment charging him with conspiracy to possess cocaine with intent to distribute, conspiracy to import cocaine and importation of cocaine. Belloisi was arrested on February 5, 2020, released on a $300,000 bond and indicted by a grand jury in Central Islip, New York on June 18, 2020.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, Peter C. Fitzhugh, Special Agent-in-Charge, Homeland Security Investigations, New York (HSI), and Troy Miller, Director of Field Operations, U.S. Customs and Border Protection, New York Field Office (CBP), announced the charges.
According to court filings, on February 4, 2020, shortly after American Airlines flight 1349 arrived at JFK Terminal 8 from Montego Bay, Jamaica, a routine search by CBP officers who are members of the JFK Anti-Terrorism Contraband Enforcement Team revealed approximately 11.594 kilograms (25.56 pounds) of cocaine bricks concealed behind an insulation blanket in an external mechanical compartment beneath the aircraft. CBP officers and HSI special agents then began visual surveillance of the aircraft from a distance. Shortly before the aircraft was scheduled to depart, Belloisi was observed approaching the aircraft and entering the compartment where the cocaine had been hidden. The officers confronted Belloisi after he exited the compartment and observed evidence that Belloisi had handled the area where the cocaine bricks were discovered. Belloisi also had carried an empty tool bag to the aircraft and had cutouts in the lining of his jacket, which together were sufficiently large to hold the bricks of cocaine that had been in the compartment.
"As alleged, this airline mechanic abused his position as a trusted employee and his access to sensitive areas of JFK Airport to participate in the clandestine importation of cocaine,” stated United States Attorney Donoghue. “These charges will serve as a warning that federal law enforcement authorities remain vigilant in protecting the security of our borders and fighting the scourge of international narcotics trafficking. Those who attempt to poison our communities by smuggling drugs through our ports of entry will be held accountable.”
“As alleged, Belloisi was the ‘inside man’, moving more than 25 pounds of cocaine from Jamaica to New York,” stated HSI Special Agent-in-Charge Fitzhugh. “HSI and CBP’s joint efforts continue to stem these threats to our aviation industry by which perpetuate the international movement of contraband through our airports. HSI will continue to persistently investigate and dismantle these criminal enterprises working with our law enforcement and airline partners.”
“This internal conspiracy case serves as a great example of collaborative law enforcement efforts to combat those that would compromise their access to restricted space and equipment, while aiding international narcotics trafficking conspirators. U.S. Customs and Border Protection thanks our partners at HSI and the U.S. Attorney’s Office, Eastern District of New York, for their continued cooperation,” stated CBP Director of Field Operations Miller.
The charges in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty. If convicted, Belloisi faces a maximum sentence of life in prison.
The government’s case is being handled by the Office’s General Crimes Section. Assistant United States Attorney Robert M. Pollack is in charge of the prosecution.
The Defendant:
PAUL BELLOISI
Age: 52
Hicksville, New YorkE.D.N.Y. Docket No. 20-CR-219 (DLI)
11 Members and Associates of the Bully Gang Charged with Narcotics Conspiracy, Illegal Weapons Possession and Money LaunderingRead the Press Release
Defendants Include Two New York City Department of Education Employees
Two criminal complaints were unsealed today in federal court in Brooklyn charging 11 members and associates of the New York City-based Bully street gang with crimes related to conspiracies to distribute drugs throughout Maine and in New York, smuggling drugs into Rikers Island, illegal weapons possession and money laundering. The initial appearances of six defendants arrested today in Brooklyn and New Jersey—alleged Bully gang member Derrick Ayers and gang associates Bermon Clarke, Amy Sonnenblick, Nia Govan, Paul Harris and Anthony Kennedy—are scheduled for this afternoon before United States Chief Magistrate Judge Cheryl L. Pollak. Defendant Amanda Walton was arrested in Maine. Defendant Amanda Huard is currently not in custody. The remaining defendants were previously incarcerated.
Richard P. Donoghue, 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), Dermot F. Shea, Commissioner, New York City Police Department (NYPD), and Margaret Garnett, Commissioner, New York City Department of Investigation (DOI), announced the charges.
“As alleged, these defendants trafficked narcotics between Maine and New York, including smuggling dangerous contraband drugs into Rikers Island,” stated United States Attorney Donoghue. “Drug dealers, and those who launder their drug proceeds, destroy lives and communities and, in this case, jeopardized the safety and security of a prison.”
Mr. Donoghue expressed his grateful appreciation to the Maine Drug Enforcement Agency, the United States Attorney’s Office for the District of Maine, New Hampshire State Police, Maine State Police, Brewer Maine Police Department, Waterville Maine Police Department and Augusta Maine Police Department for their assistance in the case.
“These arrests will undoubtedly have a significant impact on public safety. As alleged, these gang members and their associates plagued communities from New York City to Maine, but today, thanks to the diligent work of the ATF/NYPD Joint Firearms Task Force, their criminal exploits have been brought to an end,” stated ATF Special Agent-in-Charge DeVito. “I would like to thank the United States Attorney’s Office for their work in prosecuting this case and acknowledge the contributions of the New Hampshire State Police, Maine State Police, Maine Drug Enforcement Agency, Waterville Maine Police Department and the Augusta Maine Police Department.”
“The NYPD’s responsibility to prevent crime and keep people safe knows no boundaries. In this case, our hardworking detectives and law enforcement partners dismantled an alleged drug gang with a complex distribution network that crossed state lines and penetrated Rikers Island,” stated NYPD Commissioner Shea.
“Contraband smuggling at Rikers Island continues to be a threat to the security of our City’s jails and an active area of investigation for DOI. These defendants allegedly worked in concert using various methods to smuggle illicit drugs into Rikers Island, including mailing packages of paper soaked with K2 disguised as mail to inmates in an attempt to bypass Department of Correction screening procedures. DOI is proud to partner with the U.S. Attorney for the Eastern District of New York, the Bureau of Alcohol, Tobacco, Firearms and Explosives, New York Field Division, and the New York City Police Department to investigate and prosecute these alleged crimes,” stated DOI Commissioner Garnett.
According to the complaints, Ayers, Clarke, Govan, Huard, Jessica Pelkey, Walton and Demetrius Wright are members of a drug ring operating in New York, Maine and elsewhere. The organization trafficked cocaine base (or “crack”), heroin and other controlled substances using vehicles with hidden compartments and “trap” houses in Maine to store and sell narcotics.
As alleged, the drug trafficking proceeds were deposited into various bank accounts, including an account controlled by Sonnenblick, who is employed as a paraprofessional by the New York City Department of Education, as is Clarke. Sonnenblick then transferred the drug money to her co-conspirators. In addition to laundering proceeds through bank deposits and wire transfers, drug proceeds were also laundered through the acquisition of vehicles, including a Range Rover purchased by Sonnenblick and used by Ayers.
As charged in the related complaint, Moeleek Harrell, the founder of the Bully gang and currently an inmate at Rikers Island, coordinated with associates Kennedy and Harris to smuggle 5-Fluoro MDMB-Pica, a Schedule I controlled substance commonly referred to as “K2,” into the jail. Law enforcement officers recovered multiple pages of a court transcript that had been soaked in K2 and earmarked for delivery to Harrell. A subsequent search of Harrell’s cell revealed additional pages of paper from comic books that field tested positive for synthetic cannabinoid and for fentanyl and/or heroin.
Ayers, Clarke, Govan, Huard, Pelkey, Walton and Wright are charged with conspiracy to possess with intent to distribute heroin and at least 280 grams of crack cocaine; Ayers and Clarke are charged with possessing one or more firearms in relation to the drug conspiracy; Ayers, Clarke, Govan, Sonnenblick and Walton are charged with money laundering conspiracy; and Harrell, Harris and Kennedy are charged with conspiracy to distribute and possess with intent to distribute K2.
During searches of premises today in Maine, Massachusetts, New Jersey and New York, law enforcement officials found multiple firearms; a substantial amount of U.S. currency; drug manufacturing and packaging supplies; law enforcement paperwork pertaining to criminal investigations and narcotics believed to include marijuana, crack cocaine, heroin and fentanyl.
The charges in the complaints are allegations, and the defendants are presumed innocent unless and until proven guilty.
The government’s case is being handled by the Office’s Organized Crime and Gangs Section and Public Integrity Section. Assistant United States Attorneys Drew G. Rolle, Nicholas J. Moscow and Special Assistant United States Attorney Virginia T. Nguyen are in charge of the prosecution.
The Defendants:
E.D.N.Y. Docket No. 20-MJ-453 (RER)
DERRICK AYERS (also known as “Mel”)
Age: 33
Rahway, New JerseyBERMON CLARKE (also known as “G”)
Age: 28
Rahway, New JerseyNIA GOVAN (also known as “Cam”)
Age: 29
Boston, MassachusettsAmanda Huard
Age: 38
MaineJESSICA PELKEY
Age: 26
Presque Isle, MaineAMY SONNENBLICK
Age: 48
Brooklyn, New YorkAMANDA WALTON
Age: 31
Portland, MaineDEMETTRIUS WRIGHT (also known as “Clean” and “Meexhi Brim”)
Age: 22
Brooklyn, New YorkE.D.N.Y. Docket No. 20-MJ-472 (CLP)
MOELEEK HARRELL (also known as “Moe Money”)
Age: 30
Brooklyn, New YorkPAUL HARRIS (also known as “Baldhead”)
Age: 31
Brooklyn, New YorkANTHONY KENNEDY (also known as “Biggie”)
Age: 34
Queens, New YorkSeven Members and Associates of Elite Assassin Millas Gang Charged with Racketeering Conspiracy, Murder, Attempted Murders and Firearms OffensesRead the Press Release
Defendants Used GPS Tracking Device to Stalk and Target a Shooting Victim
An indictment was unsealed today in federal court in Brooklyn variously charging seven members and associates of the Elite Assassin Millas (“EAM”), a subset of the Bloods street gang, with racketeering conspiracy, murder in-aid-of racketeering, attempted murder in-aid-of racketeering, conspiracy to commit murder in-aid-of racketeering, assault in-aid-of racketeering, interstate stalking, accessory after-the-fact to attempted murder and assault and related firearms offenses. Five defendants were arrested last night and will make their initial appearance via videoconference this afternoon before United States Chief Magistrate Judge Cheryl L. Pollak. The two remaining defendants, who are in federal custody, will be arraigned at a later date.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, William F. Sweeney, Jr., 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 charges and arrests.
“Gang-related violence begets more violence, and we will not tolerate the violent crimes allegedly committed by these defendants in our communities,” stated United States Attorney Donoghue. “Thanks to the hard work of federal and local law enforcement officers, the defendants will now face prosecution for the charged crimes. The Eastern District will continue working tirelessly to dismantle and eradicate violent street gangs like EAM that have turned streets into lethal shooting galleries in the neighborhoods of East New York.”
“Members of the FBI New York Metro Safe Streets Task Force work long, hard hours diligently investigating gang members who hold no regard for life, and who let a twisted turf war over drugs dictate who dies and who lives. We are out every day, doing our best to protect communities being terrorized by violent gangs, and the FBI agents and NYPD detectives should be commended for their commitment,” stated FBI Assistant Director-in-Charge Sweeney.
“Everything the NYPD does is geared toward preventing crime and keeping people safe. This indictment represents the coordinated work our detectives and federal partners do together to arrest those accused of inflicting violence in our neighborhoods,” stated NYPD Commissioner Shea.
As detailed in the government’s detention letter filed earlier today, the EAM set of the Bloods street gang follows many of the rules and the hierarchical structure of other Bloods sets, earning money through drug-trafficking and fraud, and protecting their reputation through violent crimes and firearms offenses.
In recent years, Quandel Smothers has held EAM’s highest-ranking position of “Godfather.” On April 30, 2011, Smothers allegedly shot a fellow EAM member whom he believed intended to harm another member of the gang over a drug-related dispute. As a result of the shooting, the victim’s leg was amputated.
On March 25, 2015, another member of EAM was shot and killed in East New York, Brooklyn. Almost immediately, EAM members and associates sought to retaliate by locating and killing those they believed to be responsible. On April 21, 2015, Tyshawn Corbett allegedly shot and killed Michael Tenorio on McKinley Avenue in East New York. Surveillance video of the murder shows that Corbett chased Tenorio down the residential block while firing at him, then continued shooting the victim after he fell to the ground.
On March 7, 2016, Corbett shot an individual (identified as “John Doe #1” in the indictment) on Shepard Avenue in East New York. Surveillance video shows Corbett — who appears to have been lying in wait near a parked vehicle — run down the sidewalk and shoot John Doe #1 from close range. John Doe #1 survived that attempt on his life, but on June 28, 2018, Corbett again shot John Doe #1 as he sat in a car parked in Jamaica, Queens, paralyzing him. Corbett fled in a car driven by defendant Desmon Beckett. This shooting was the result of extensive efforts by Corbett and brothers Marlon and Devon Bristol to stalk and kill their victim, including the use of a GPS tracking device that law enforcement officers subsequently recovered from John Doe #1’s car.
In the spring of 2018, a feud developed between members of EAM and another individual (identified as “John Doe #2” in the indictment). Surveillance video from June 10, 2018, shows defendant Corbett and John Doe #2 in a fistfight. A short time later, the two shot at each other, but no one was hit. Law enforcement officers later recovered one of the firearms used in the shooting incident from a storage unit maintained by Corbett under a false name. The feud continued, and EAM members Qawon Allen and Andrew Campbell conspired with others to kill John Doe #2. On July 28, 2018, a member of EAM repeatedly shot John Doe #2 on Glenmore Avenue in East New York using a firearm provided by Allen. John Doe #2 was left paralyzed by the shooting.
The charges in the indictment are allegations, and the defendants are presumed innocent unless and until proven guilty.
If convicted of murdering Tenorio, Corbett faces a mandatory sentence of life in prison, and is eligible for the death penalty. If convicted of the firearms offenses, Allen faces a mandatory minimum sentence of 15 years in prison and a maximum of life in prison, and Smothers, Marlon Bristol and Devon Bristol each face a mandatory minimum sentence of five years in prison and a maximum of life in prison. If convicted of the conspiracy to commit murder in-aid-of racketeering, Campbell faces up to 10 years in prison, and Beckett faces up to 10 years in prison if convicted as an accessory after-the-fact to the assault in-aid-of racketeering.
The government’s case is being handled by the Office’s Organized Crime and Gangs Section. Assistant United States Attorneys Margaret E. Gandy and Jonathan Siegel are in charge of the prosecution.
The Defendants:
TYSHAWN CORBETT (also known as “Reck”)
Age: 30
Brooklyn, New YorkQAWON ALLEN (also known as “40” and “Phorty Wap”)
Age: 26
Brooklyn, New YorkDESMONN BECKETT (also known as “Des”)
Age: 27
Brooklyn, New YorkDEVON BRISTOL (also known as “D”)
Age: 29
Brooklyn, New YorkMARLON BRISTOL (also known as “Marlo”)
Age: 32
Brooklyn, New YorkANDREW CAMPBELL (also known as “Phaze”)
Age: 24
Brooklyn, New YorkQUANDEL SMOTHERS (also known as “Chucky”)
Age: 29
Brooklyn, New YorkE.D.N.Y. Docket No. 20-CR-213 (KAM)
United States Attorneys Available to Receive Election ComplaintsRead the Press Release
Richard P. Donoghue, the United States Attorney for the Eastern District of New York, and Audrey Strauss, the Acting United States Attorney for the Southern District of New York, announced today that special telephone numbers have been set up to receive complaints of possible violations of federal election laws relating to tomorrow’s primary election in New York City and other counties in their districts.
The United States Attorneys said that their Offices will be available to receive complaints at the following numbers on Tuesday, June 23, 2020:
(646) 369-4739 (for Manhattan, Bronx, Dutchess, Orange, Putnam, Rockland, Sullivan, and Westchester counties) and
(718) 254-6790 (for Brooklyn, Queens, Staten Island, Nassau, and Suffolk counties)
In addition, complaints of possible violations of federal election laws may be made directly to the Federal Bureau of Investigation at (212) 384-1000.
The Department of Justice has an important role in deterring election fraud and discrimination at the polls, and combating these violations whenever and wherever they occur. The Department’s long-standing Election Day Program furthers these goals, and also seeks to ensure public confidence in the integrity of the election process by providing local points of contact within the Department for the public to report possible election fraud and voting rights violations while the polls are open on Election Day.
Federal law protects against such crimes as intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters, and provides that they can vote free from acts that intimidate or harass them. For example, actions of persons designed to interrupt or intimidate voters at polling places by questioning or challenging them, or by photographing or videotaping them, under the pretext that these are actions to uncover illegal voting, may violate federal voting rights law. Further, federal law protects the right of voters to mark their own ballot or to be assisted by a person of their choice.
The franchise is the cornerstone of American democracy. We all must ensure that those who are entitled to the franchise exercise it if they choose, and that those who seek to corrupt it are brought to justice.
The United States Attorneys also noted that the following additional telephone numbers are available for citizens to call for routine inquiries, such as where to vote or how late the polls are open, or to register complaints that may concern violations of New York State election laws:
IN NEW YORK CITY
City Board of Elections
Main Office (866) 868-3692
TTY #: (212)-487-5496
IN COUNTIES OUTSIDE NEW YORK CITY
County Boards of Elections
Dutchess (845) 486-2473
Nassau (516) 571-8683
Orange (845) 360-6500
Orange (Spanish language) (855) 331-2444
Putnam (845) 808-1300
Rockland (845) 638-5172
Suffolk (631) 852-4500
Sullivan (845) 807-0400
Westchester (914) 995-5700
Assistant United States Attorneys David J. Kennedy and Nicolas Roos are responsible for overseeing the handling of complaints of voting rights abuses and election fraud for the Southern District of New York.
Assistant United States Attorney Erik Paulsen is responsible for overseeing the handling of complaints of voting rights abuses and election fraud for the Eastern District of New York.
Long Island Man Indicted on Sexual Exploitation and Child Pornography ChargesRead the Press Release
An indictment was filed today in federal court in Central Islip charging Thomas Blaha with traveling to the Philippines with intent to engage in illicit sexual conduct, sexual exploitation of a child, distribution of child pornography and possession of child pornography. Blaha was arrested on a complaint in February 2020 and released on a $1 million bond. He will be arraigned at a later date.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, and Peter C. Fitzhugh, Special Agent-in-Charge, Homeland Security Investigations, New York (HSI), announced the charges.
“The defendant allegedly traveled halfway across the globe to sexually exploit a minor that he had enticed through Facebook and create child pornography,” stated United States Attorney Donoghue. “The Department of Justice is committed to protecting children from online predators by identifying such offenders and prosecuting them to the full extent of the law.”
“It is alleged Blaha made trips to the Philippines to sexually abuse a 13-year old female who was being exploited for money,” stated HSI Special Agent-in-Charge Fitzhugh. “Crimes involving the sexual exploitation of unwitting children are the most heinous and will not be tolerated, regardless of where the sexual acts occur. HSI is a global investigative agency, and with our resources and partnerships with the United States Attorney’s Office, we will stop at nothing to put an end to child victimization worldwide.”
According to court filings, in September and October 2019 Blaha traveled from New York to the Philippines to engage in sexual activity with a 13-year-old female and persuade her to take sexually explicit images of herself and send them to him in exchange for money. As a part of the government’s investigation, in December 2019, search warrants were obtained for Blaha’s Facebook account, as well as his residence in Garden City and his electronic devices. The searches revealed hundreds of images of children engaged in sexually explicit conduct.
The charges in the indictment are allegations only, and the defendant is presumed innocent unless and until proven guilty. If convicted, Blaha faces a mandatory minimum sentence of 15 years’ imprisonment.
This prosecution was brought as 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 handled by the Office’s General Crimes Section. Assistant United States Attorney Anna L. Karamigios is in charge of the prosecution.
The Defendant:
THOMAS BLAHA
Age: 64
Garden City, New YorkE.D.N.Y. Docket No. 20-CR-220 (JMA)
Two Queens Men Charged in Armed Robbery at Aqueduct RacetrackRead the Press Release
Two criminal complaints were unsealed today in federal court in Brooklyn charging Lamel Miller and Lafayette Morrison with Hobbs Act robbery in connection with the March 7, 2020 armed robbery of over $280,000 in cash from Aqueduct Racetrack in South Ozone Park, Queens. Miller and Morrison were arrested earlier today and their initial appearances are scheduled for this afternoon before United States Magistrate Judge Ramon E. Reyes, Jr.
Richard P. Donoghue, 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 Dermot F. Shea, Commissioner, New York City Police Department (NYPD), announced the arrests and charges.
According to court documents, at approximately 9:45 p.m. following the Gotham Day races at Aqueduct, Miller and a co-conspirator held up at gunpoint several racetrack employees – including Morrison who was employed as a racetrack security guard – as they were transporting more than $280,000 in cash earnings to a vault. Miller and the co-conspirator, wearing surgical masks, emerged from their hiding spot in a stairwell and confronted the employees at gunpoint. Miller and the co-conspirator took the employees’ cell phones and the cash, and forced the victims into a closet. Morrison was actually an “inside man,” providing information in advance about where and when the money would be transported to the vault. Aqueduct surveillance video shows Miller and the co-conspirator, still wearing surgical masks, carrying a garbage bag and a duffel bag when they exited the racetrack office and walked toward a parking lot at approximately 10:05 p.m.
“The defendants allegedly gambled that they could pull off a high-stakes robbery with the benefit of inside information, but thanks to the outstanding efforts of ATF Special Agents and NYPD detectives, they ended up on the losing end of that bet,” stated United States Attorney Donoghue.
“Preventing violent crime and the illegal use of firearms remain the core of ATF’s mission. As alleged, Miller and Morrison conspired in a brazen armed robbery, however today, thanks to the efforts of the ATF/NYPD Joint Robbery Task Force, they were taken off the streets of this city and no longer pose a threat to public safety,” stated ATF Special Agent-in-Charge DeVito. “I would like to thank our law enforcement partners and the United States Attorney’s Office for their work in prosecuting this case.”
“This alleged crew may have seen their inside job as a day at the races, but our arrests and federal complaints prove otherwise. Our partnerships, precision policing and vigilance in fighting for victims remains strong,” stated NYPD Commissioner Shea.
The charges in the complaints are allegations, and the defendants are presumed innocent unless and until proven guilty. If convicted, the defendants face up to 20 years’ imprisonment.
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. Attorney General William Barr has enhanced PSN as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorneys’ Offices to work in partnership with federal, state, local and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
The government’s case is being handled by the Office’s General Crimes Section. Assistant United States Attorney Matthew R. Galeotti is in charge of the prosecution.
The Defendants:
LAMEL MILLER
Age: 37
Queens, New YorkLAFAYETTE MORRISON
Age: 37
Jamaica, QueensE.D.N.Y. Docket Nos. 20-MJ-400; 20-MJ-438
Two Brooklyn Residents and a Greene County Resident Indicted in Connection with Molotov Cocktail Attacks on NYPD VehiclesRead the Press Release
Two indictments were returned yesterday in federal court in Central Islip, New York, charging Samantha Shader, and co-defendants Colinford Mattis and Urooj Rahman in connection with their alleged attempts to use improvised incendiary devices, commonly known as “Molotov Cocktails,” to damage and destroy New York City Police Department vehicles during protests this past month.
The seven-count indictments each charge the defendants with the use of explosives, arson, use of explosives to commit a felony, arson conspiracy, use of a destructive device, civil disorder, and making or possessing a destructive device.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, William F. Sweeney, Jr., 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 charges.
“Amid largely peaceful demonstrations taking place on the night of May 29, 2020, these defendants allegedly hurled Molotov Cocktails at NYPD vehicles without regard for the potentially deadly consequences,” stated United States Attorney Donoghue. “Such criminal acts should never be confused with legitimate protest. Those who carry out attacks on NYPD Officers or vehicles are not protesters, they are criminals, and they will be treated as such.”
“A little more than a week after their arrests, Shader, Mattis, and Rahman have been charged with seven-count indictments in response to their potentially deadly attacks. Their criminal behavior risked lives, destroyed equipment that exists to serve the community, siphoned response resources, and created a threat to those who had every right to safely assemble and express their opinion,” stated FBI Assistant Director-in-Charge Sweeney.
“Violence, like that alleged here, not only endangers our NYPD officers but threatens the constitutional right of people to peacefully protest. These indictments by our federal partners reflect our joint condemnation of the kind of isolated acts a just society can never tolerate,” stated NYPD Commissioner Shea.
As detailed in court filings in the case against Mattis and Rahman, an NYPD surveillance camera recorded Rahman tossing a Molotov cocktail at an NYPD vehicle parked near the 88th Precinct in the Fort Greene section of Brooklyn, then fleeing in a tan minivan. Police Officers pursued the minivan and arrested Rahman and Mattis, who was the vehicle’s driver. In the vehicle, the NYPD found several component items for Molotov Cocktails, including a lighter, a bottle filled with liquid suspected to be gasoline and toilet paper, additional bottles and toilet paper, and a gasoline canister.
As detailed in court filings in the case against Shader, a video recorded by a witness captured her igniting a Molotov cocktail and throwing it at an NYPD vehicle occupied by four police officers, shattering two of its windows. Police officers pursued Shader as she attempted to flee and apprehended her at the scene.
The charges in the indictments are allegations, and the defendants are presumed innocent unless and until proven guilty.
If convicted on all counts, the defendants face sentences of up to life imprisonment.
The government’s case is being handled by the Office’s National Security and Cybercrime Section. Assistant United States Attorneys Ian C. Richardson and Jonathan Algor are in charge of the prosecution.
The Defendants:
COLINFORD MATTIS
Age: 32
Brooklyn, New YorkUROOJ RAHMAN
Age: 31
Brooklyn, New YorkE.D.N.Y. Docket No. 20-CR-203 (BMC)
SAMANTHA SHADER
Age: 27
Catskill, New YorkE.D.N.Y. Docket No. 20-CR-202 (DLI)