Eastern District of New York
Press releases recorded for this federal judicial district.
Day Trader Pleads Guilty to Computer Hacking and Securities Fraud Scheme Targeting Online Brokerage AccountsRead the Press Release
Earlier today, in federal court in Brooklyn, Joseph P. Willner, a self-described day trader, pleaded guilty to conspiring to commit securities fraud and illegally profiting from a series of coordinated trades involving more than 50 hacked online brokerage accounts. The plea took place before United States District Judge Margo K. Brodie. When sentenced, Willner faces up to five years in prison, as well as forfeiture and a fine of up to twice the gross loss caused by the conspiracy.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, Brian A. Benczkowski, Assistant Attorney General for the Justice Department’s Criminal Division, and William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office, announced the guilty plea. Mr. Donoghue expressed his grateful appreciation to the United States Securities and Exchange Commission and the United States Commodity Futures Trading Commission for their significant assistance in the investigation.
“Willner and his co-conspirators used computer hacking to take the pump out of pump and dump, eliminating the need to trick investors into buying artificially inflated stock by simply hacking into brokerage firm accounts and having them buy the stock unbeknownst to the brokerage firms,” stated United States Attorney Donoghue. “While the approach was novel, the end result was all the same, with the defendant being held accountable for his criminal acts. No matter what cyber techniques fraudsters use, this Office and our law enforcement partners will bring them to justice.”
As alleged in the indictment and other court filings, between September 2014 and May 2017, Willner used his brokerage accounts to place “short sale” offers for publicly traded companies’ stock at artificially high market prices. Simultaneously, Willner’s co-conspirators hacked into victims’ online brokerage accounts and placed buy orders for the stock at the artificially high prices, matching Willner’s short sale offers. Willner and his co-conspirators then re-purchased the stock from the victims’ accounts at market or below-market prices. This sequence of fraudulent trades usually took place within minutes, and Willner immediately profited based on the difference between his artificially high short sale price and the lower price at which he re-purchased the stock.
As a result of Willner’s and his co-conspirators’ actions, the affected brokerage firms lost more than $2 million.
The government’s case is being prosecuted by the U.S. Attorney’s Office Business and Securities Fraud and National Security and Cybercrime Sections, and the Securities and Financial Fraud Unit of the Department of Justice Fraud Section. Assistant United States Attorneys Mark E. Bini and Craig R. Heeren and Department of Justice Trial Attorney Cory E. Jacobs are in charge of the prosecution.
The Defendant:
JOSEPH P. WILLNER
Age: 44
Ambler, PennsylvaniaE.D.N.Y. Docket No. 17-CR-620 (MKB)
17 Members and Associates of Queens-Based Makk Balla Brims Set of the Bloods Gang Indicted for Racketeering, Including Predicate Acts of Robbery and Firearms OffensesRead the Press Release
A superseding indictment was unsealed today in federal court in Brooklyn charging 17 members and associates of the Makk Balla Brims set of the Bloods street gang with crimes related to their participation in a robbery crew that used guns and violence to steal property over a nine-month period in 2017 in Queens and on Long Island. The 16 newly charged defendants were arrested today, and all but three will be arraigned this afternoon before United States Magistrate Judge Steven M. Gold. The remaining defendants, who are incarcerated in state and federal facilities, will be arraigned on 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 James P. O’Neill, Commissioner, New York City Police Department (NYPD), announced the indictment.
“As alleged, members and their associates of the Makk Balla Brims set of the Bloods committed numerous, violent armed robberies, victimizing families in their homes and employees and patrons of local businesses, including a barber shop,” stated United States Attorney Donoghue. “We are working tirelessly with our law enforcement partners to ensure that our community is protected from the threat posed by violent street gangs such as this one.” Mr. Donoghue expressed his grateful appreciation to the Port Washington Police Department, Nassau County Police Department and New York State Department of Corrections for their assistance during the investigation.
“Members of this gang allegedly attacked innocent people in their own homes, believing they could act without consequences,” stated FBI Assistant Director-in-Charge Sweeney. “Our goal when we open an investigation into violent gangs is to take out the leadership. This case is a perfect example of how we don’t stop simply by making a few arrests, we will continue to investigate and track down all those involved in their criminal activity and stop them from literally terrorizing a community in their lust for violence.”
“Targeting and dismantling criminal groups, and preventing violence that is often associated with their illegal activities, continues to be among the highest priorities for the NYPD and our law enforcement partners,” stated NYPD Commissioner O’Neill. “I commend and thank the attorneys from the U.S. Attorney’s Office, Eastern District of New York for bringing this case forward, and the NYPD investigators for their hard work to keep our communities safe and further reduce crime and disorder.”
The Makk Balla Brims set of the Bloods is comprised primarily of members residing in and around the South Jamaica Houses and the American Towers in Queens. As alleged in the indictment and other court filings, between May 2017 and December 2017, the defendants participated in 11 robberies or attempted robberies, brandishing or using guns during most of the crimes. The defendants targeted individuals they believed would be in possession of large amounts of cash, electronics, jewelry or narcotics. Upon receiving a tip about a promising victim, the Makk Balla Brims would assemble a crew to carry out the robbery, and the participants adopted various roles for the crime, including lookout, getaway driver and gunman. Several of the charged robberies are described below:
The Barber Shop Robbery
On September 23, 2017, Michael Miles, Shamel Simpkins, Reshawn Smith, Kimberly Thompson and other co-conspirators robbed the Jevo Barber Shop in Jamaica, Queens. Simpkins chose the crew members, Miles was armed with a TEC-9 semiautomatic pistol and Thompson drove the getaway car. Miles and Smith entered the shop and removed gold chains, cell phones and cash from the victims, as well as cash proceeds from the business.
Home Invasion and Torture
On September 29, 2017, Andre Barnaby, Brandon Darby and Pierre Raymond broke into a home in Elmont, Long Island that they believed to be a marijuana stash house, while Simpkins and Shawn Silvera remained in the getaway car. Darby and Raymond wore masks and brandished guns. They tied up one victim with an extension cord and demanded marijuana and cash. When the victim stated that he did not have marijuana, Raymond and Darby heated up a knife and repeatedly burned the victim’s legs.
Home Invasion and Shooting
On October 11, 2017, James Roberson, Simpkins, Thompson and other co-conspirators robbed a house in North Valley Stream, Long Island, where they believed a jewelry store owner kept jewelry and cash. Roberson and several co-conspirators forced their way into the house brandishing guns, and restrained the victim’s family members using zip ties. Roberson shot the victim in the stomach before fleeing with jewelry and electronics. The victim received medical treatment and survived.
Targeting Homes with Outdoor Indian Flags
In at least two robberies, the defendants looked for homes where Indian flags were flying because they believed the residents kept gold and cash inside. Avery Mitchell posed as a deliveryman wearing a United Parcel Service (UPS) jacket to enter a house, where he and other co-conspirators restrained two young girls at gunpoint. Mitchell and the crew fled with electronics and jewelry. On November 19, 2017, Davis, Nahjuan Perry, Mitchell and other co-conspirators robbed a second house where Indian flags were flying outside. Mitchell again donned a UPS jacket as a ruse to gain entry, and shot one resident before fleeing empty-handed.
Eleven defendants -- Andre Barnaby, Brandon Darby, Antonio Davis, Michael Miles, Avery Mitchell, Nahjuan Perry, James Roberson, Shawn Silvera, Shamel Simpkins, Rashawn Smith, and Kimberly Thompson -- are charged with racketeering, including predicate acts of Hobbs Act robberies, robbery under New York State law and related firearms offenses. Five additional defendants -- Matthew Elias, Tyquan Henderson, Pierre Raymond, Latiff Thompson, and Lawrence Woods -- are newly charged with Hobbs Act robbery and related firearms offenses. Constantin Cheese was previously charged with Hobbs Act robbery and related firearms offenses in an underlying indictment.
If convicted, each defendant faces a mandatory minimum sentence of at least seven years’ imprisonment and a maximum of life imprisonment.
The charges in the indictments are allegations and the defendants are presumed innocent unless and until proven guilty.
The government’s case is being handled by the Office’s Organized Crime and Gangs Section. Assistant United States Attorneys Jonathan E. Algor and Jennifer M. Sasso are in charge of the prosecution.
The Defendants:
ANDRE BARNABY (also known as “Goonie Dre”)
Age: 27
Queens, New YorkCONSTANTIN CHEESE (also known as “Cheese”)
Age: 31
Queens, New YorkBRANDON DARBY (also known as “Barrack”)
Age: 28
Queens, New YorkANTONIO DAVIS (also known as “Big Blood”)
Age: 38
Queens, New YorkMATTHEW ELIAS (also known as “Heddis”)
Age: 36
Queens, New YorkTYQUAN HENDERSON (also known as “Gun Play”)
Age: 22
Queens, New YorkMICHAEL MILES (also known as “Michael Davis” and “Menace”)
Age: 35
Queens, New YorkAVERY MITCHELL (also known as “Slay”)
Age: 24
Queens, New YorkNAHJUAN PERRY (also known as “Nas”)
Age: 24
Queens, New YorkPIERRE RAYMOND (also known as “Leeky”)
Age: 21
Queens, New YorkJAMES ROBERSON (also known as “Littles”)
Age: 24
Queens, New YorkSHAMEL SIMPKINS (also known as “Sha Bang”)
Age: 32
Queens, New YorkSHAWN SILVERA (also known as “Dum Out”)
Age: 26
Queens, New YorkRASHAWN SMITH (also known as “Shawn”)
Age: 22
Queens, New YorkKIMBERLY THOMPSON (also known as “Kimmy”)
Age: 23
Queens, New YorkLATIFF THOMPSON (also known as “La Banga”)
Age: 30
Queens, New YorkLAWRENCE WOODS (also known as “Lazo”)
Age: 33
Queens, New York“R. Kelly” Charged with Racketeering, Including Predicate Acts of Coercing and Transporting Minor Girls to Engage in SexRead the Press Release
A five-count superseding indictment was unsealed today in federal court in Brooklyn charging R&B singer Robert Sylvester Kelly, also known as “R. Kelly,” with racketeering predicated on criminal conduct including sexual exploitation of children, kidnapping, forced labor and Mann Act violations involving the coercion and transportation of women and girls in interstate commerce to engage in illegal sexual activity. Kelly is also charged with four counts of violating the Mann Act related to his interstate transportation of a victim to New York to engage in illegal sexual activity, and his exposure of her to an infectious venereal disease without her knowledge. Also today, Kelly was charged in a separate federal indictment unsealed in the Northern District of Illinois with federal child pornography and obstruction charges.
Kelly will appear this afternoon for a removal hearing at the federal courthouse in Chicago, Illinois. On a later date, Kelly will be arraigned on this superseding indictment in Brooklyn. This case is assigned to the United States District Judge Ann M. Donnelly.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, Angel M. Melendez, Special Agent-in-Charge, United States Department of Homeland Security, Homeland Security Investigations, New York Field Office (HSI), and James P. O’Neill, Commissioner, New York City Police Department (NYPD), announced the charges.
“As alleged, R. Kelly, together with employees and members of his entourage, engaged in a racketeering enterprise that preyed upon women and girls who attended his concerts so that the victims could be available to engage in illegal sexual activity with him at a moment’s notice,” stated United States Attorney Donoghue. “Today that comes to an end. This indictment makes clear that fame and power will not shield anyone from prosecution, particularly predators who victimize vulnerable members of our communities for their own sexual gratification.”
“R. Kelly’s Enterprise was not only engaged in music; as alleged, for two decades the enterprise at the direction of R. Kelly preyed upon young women and teenagers whose dreams of meeting a superstar, soon turned into a nightmare of rape, child pornography and forced labor. The musician turned predator allegedly used his stardom to coax some victims into nefarious sex acts while certain members of his enterprise calculatingly facilitated the aberrant conduct. Today’s indictment charging racketeering is a clear indication of the extent of his criminal activity, which involves coercion and kidnapping. This investigation was built with the foresight of special agents and detectives assigned to the joint HSI and NYPD Public Safety Task Force, along with prosecutors of the Eastern District of New York. R. Kelly believed he could fly, but it will be justice to see his oppressive wings clipped,” stated HSI Special Agent-in-Charge Melendez.
“The NYPD is committed to ensuring that child predators are taken off our streets and prosecuted to the fullest extent of the law. I thank our skilled NYPD detectives and our law enforcement partners for their unified work to provide justice for the victims of these despicable crimes. Those who engage in these reprehensible offenses against our most vulnerable will be pursued relentlessly, and held accountable for the pain and suffering they cause,” stated NYPD Commissioner O’Neill.
According to the superseding indictment and other court filings, Kelly and individuals who served as his managers, bodyguards, drivers, personal assistants and runners, as well as members of his entourage, comprised a racketeering enterprise (the Enterprise) that operated for over two decades in New York, Illinois, Connecticut, California and elsewhere. Kelly, as leader of the Enterprise, used his fame to recruit women and girls to engage in illegal sexual activity with him and others. The superseding indictment alleges that Kelly identified these girls and women and then directed members of the Enterprise to escort them backstage or to events following his musical performances. Kelly also exchanged contact information with girls and women so that he and other members of the Enterprise could arrange travel and lodging for them to visit Kelly and engage in the charged illegal sexual conduct.
Kelly issued rules that many of his sexual partners were required to follow, including that the women and girls were to call him “Daddy”; they were not permitted to leave their rooms to eat or visit the bathroom without receiving his permission; they were required to wear baggy clothing when not accompanying Kelly to an event; and they were directed to keep their heads down and not look at other men. Kelly also isolated the women and girls from their friends and family, and made them dependent on him for their financial well-being.
Earlier today, federal agents executed a search warrant at Kelly’s residence.The charges in the superseding indictment are allegations, and the defendant is presumed innocent unless and until proven guilty.
If convicted, Kelly faces a sentence of up to 20 years’ imprisonment for the Racketeering and two Mann Act Coercion and Enticement counts respectively, and up to 10 years’ imprisonment for each of the Mann Act Transportation counts.
If you believe you are a victim of criminal activity perpetrated by Robert Kelly, please contact HSI at 1-866-DHS-2-ICE (1-866-347-2423) or by logging on to https://www.ice.gov/webform/hsi-tip-form. This service is available 24 hours a day, seven days a week. All information will be kept strictly confidential.
The government’s case is being handled by the Office’s Civil Rights Section. Assistant United States Attorneys Elizabeth Geddes, Nadia Shihata and Maria Cruz Melendez are in charge of the prosecution.
The Defendant:
Robert Sylvester Kelly (also known as “R. Kelly”)
Age: 52
Residence: Chicago, IllinoisE.D.N.Y. Docket No. 19-CR-286 (AMD)
Platinum Partners’ Founder and CIO Mark Nordlicht and Co-CIO David Levy Convicted of Defrauding Bondholders in a Multi-Million Dollar SchemeRead the Press Release
Mark Nordlicht, the founder and Chief Investment Officer of Platinum Partners L.P. (Platinum), and David Levy, the co-Chief Investment Officer of Platinum, were convicted today by a federal jury in the Eastern District of New York of securities fraud, securities fraud conspiracy and wire fraud conspiracy for their roles in defrauding the bondholders of Black Elk Energy (Black Elk), an oil company that was one of Platinum’s largest assets, by rigging a consent solicitation vote. The verdict followed a two-month trial before United States District Judge Brian M. Cogan.
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 Philip Bartlett, Inspector-in-Charge, United States Postal Inspection Service, New York Division (USPIS), announced the verdict.
“With today’s verdict, Nordlicht and Levy have been held accountable for deceiving bondholders to gain control of the remaining assets of a failing oil company to line their own pockets and those of close family and friends,” stated United States Attorney Donoghue. “This Office and our law enforcement partners remain unwavering in our commitment to unraveling complex fraud schemes and bringing perpetrators, like the defendants, to justice.” Mr. Donoghue thanked the Securities and Exchange Commission, New York Regional Office (SEC), for their significant cooperation and assistance during the investigation.
“The victims of this scheme paid the price for the crimes committed by Nordlicht and Levy,” stated FBI Assistant Director-in-Charge Sweeney. “Today, the tables have turned. The FBI is committed to working with our law enforcement partners to ensure this type of behavior ceases to exist, and that investors can continue to place their faith in our financial markets.”
“In this case the defendants devised a scheme to defraud bondholders and cheat them out of millions of dollars. Today’s verdict should be a warning for all the fraudsters out there: No matter how slick you think you are, liars, frauds and cheats never win,” stated USPIS Inspector-in-Charge Bartlett.
Platinum was a New York City-based hedge fund founded in 2003. The evidence at trial established that between approximately November 2011 and December 2016, Nordlicht and Levy, together with their co-conspirators, orchestrated a fraudulent scheme to defraud third-party holders of Black Elk’s publicly traded bonds (the bondholders) by diverting to Platinum the proceeds from the sale of the vast majority of Black Elk’s most lucrative oil fields even though the bondholders had priority over Platinum’s equity interests. To execute this scheme, in early 2014, Nordlicht, Levy and others caused Platinum to secretly purchase Black Elk bonds on the open market and gain control of $98 million of the $150 million of outstanding bonds. The bonds were then transferred through a number of related entities to conceal their ownership and control by Platinum. Nordlicht, Levy and their co-conspirators then rigged a consent solicitation vote to amend the Black Elk indenture so that the proceeds from the sale of Black Elk’s best assets would be paid to the preferred equity – which was held by Platinum and Platinum insiders – ahead of the other bondholders. Notably, non-Platinum related bondholders overwhelmingly voted against changing the indenture; one bondholder explained that to do so would constitute “giv[ing] up my rights and not get[ting] anything back for it,” which he characterized as “kind of stupid.”
After the rigged vote was complete, Nordlicht, Levy and their co-conspirators took millions of dollars from the asset sale for themselves, family members and friends, including approximately $7 million to Nordlicht’s father, approximately $250,000 to Levy and approximately $2 million to the brother of a co-conspirator.
Nordlicht, Levy and Joseph SanFilippo were acquitted of counts related to a separately charged scheme involving investors in the Platinum funds.
The government’s case is being handled by the Office’s Business and Securities Fraud Section. Assistant United States Attorneys Alicyn Cooley, David Pitluck, Lauren Elbert and Patrick Hein are in charge of the prosecution.
The Defendants:
MARK NORDLICHT
Age: 51
New Rochelle, New YorkDAVID LEVY
Age: 34
New York, New YorkNew York Anesthesiologist Indicted for Alleged Role in Telemedicine Health Care Fraud ConspiracyRead the Press Release
A New York anesthesiologist was arraigned today on an indictment charging her for her role in an alleged telemedicine conspiracy to submit fraudulent claims to Medicare, Medicare Part D plans and private insurance plans.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Richard P. Donoghue of the Eastern District of New York, Assistant Director in Charge William F. Sweeney Jr. of the FBI’s New York Field Office and Special Agent in Charge Scott J. Lampert of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Office of Investigations made the announcement.
Anna Steiner, also known as “Hanna Wasielewska,” 63, of Valatie, New York, was charged in an indictment filed in the Eastern District of New York with one count of conspiracy to commit health care fraud. Steiner was previously arrested on a complaint in April 2019.
According to the indictment, starting in approximately January 2015, Steiner participated in a health care fraud scheme in which she and others ordered and prescribed durable medical equipment (DME) and prescription drugs in connection with purported telemedicine services. As alleged in the indictment, however, Steiner and other providers signed prescriptions and order forms for DME and drugs that were not medically necessary and that were induced by kickbacks, and provided for beneficiaries whom Steiner and others had not examined and evaluated. Steiner, together with others, allegedly submitted or caused the submission of more than $7 million in claims to Medicare for DME on behalf of more than 3,000 beneficiaries; Medicare paid more than $3 million on those claims.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
This case was investigated by the FBI and HHS-OIG. Trial Attorney Andrew Estes of the Criminal Division’s Fraud Section is 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 14 strike forces operating in 23 districts, has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than $14 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
Former Executive Director Convicted of Stealing Nearly One Million Dollars from Long Island CharityRead the Press Release
Wafa Abboud, the former Executive Director of Human First, a not-for-profit organization based in Nassau County, New York, that provides services to developmentally disabled individuals, was convicted today by a federal jury in Brooklyn of all counts of a superseding indictment charging her with embezzling funds, bank fraud and money laundering. The verdict followed a two-week trial before United States District Judge Edward R. Korman. When sentenced, Abboud faces up to 30 years’ imprisonment.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, announced the verdict.
“With today’s verdict, Abboud has been held accountable for abusing her position of trust as the Executive Director of a charity and funding her elaborate lifestyle with money intended to serve the needs of vulnerable individuals in the community,” stated United States Attorney Donoghue. Mr. Donoghue expressed his grateful appreciation to the Federal Bureau of Investigation, New York Field Office, the New York State Office of the Attorney General and the New York State Office of the Inspector General for their work on the case.
From January 2011 until she was terminated on May 27, 2016, Abboud was Human First’s Executive Director and authorized the disbursement of all of the charity’s funds. Between May 2011 and February 2016, Abboud caused Human First to issue approximately $16,000 a month in purported consultant fees to MPB Management Services LLC (MPB), a company controlled by co-conspirator Marcelle Bailey. Every month, Abboud wrote two checks payable to MPB, each for $8,000, and deposited one of the checks into bank accounts in MPB’s name that Abboud controlled. In total, Abboud diverted $420,000 of Human First funds into the accounts and used the embezzled funds to pay for her personal expenses, including a trip to Disneyland in California, tickets to the Broadway show “Newsies,” visits to luxury spas and high-end beauty salons, cosmetic surgeries and international wire transfers. Abboud also withdrew nearly $120,000 in cash from the accounts.
Abboud also embezzled more than $440,000 from Human First with her co-conspirator Rami Taha, another consultant who Abboud hired to work at Human First. In furtherance of this scheme, the defendant approved inflated construction invoices that were submitted to Human First by Taha. Abboud issued Human First checks to companies controlled by Taha, who in turn diverted the embezzled funds back to Abboud. Abboud used the funds toward the down payment for her residence and to pay for extensive renovations to the residence. When Abboud’s mortgage lender asked her about the source of the funds, Abboud, to conceal the embezzlement, falsely represented to the lender that the funds were part of a settlement payment that she had received for damage to her prior residence. The evidence at trial also established that the defendant awarded herself an annual salary increase to $479,000, without obtaining the required approval from Human First’s Board of Directors, in order to obtain the mortgage loan.
Bailey pleaded guilty in December 2017 to embezzling funds and bank fraud, and Taha pleaded guilty in May 2019 to embezzling funds. A fourth defendant, Arkadiusz Swiechowicz, pleaded guilty to obstruction of justice in September 2018. They are awaiting sentencing.
The government’s case is being handled by the Office’s Public Integrity Section. Assistant United States Attorneys Robert Polemeni and F. Turner Buford are in charge of the prosecution.
The Defendant:
WAFA ABBOUD
Age: 51
Merrick, New YorkE.D.N.Y. Docket No. 16-CR-396 (ERK)
Defendant Sentenced to More Than 12 Years’ Imprisonment for Armed Robbery of Brooklyn Heights Jewelry StoreRead the Press Release
Earlier today, in federal court in Brooklyn, Lashawn Williams, also known as “Ron Johnson,” was sentenced to 147 months’ imprisonment for his role in the May 25, 2017 armed robbery of a jewelry store on Court Street in Brooklyn. The Court also ordered Williams to pay $95,000 in restitution. Williams pleaded guilty in September 2018 to Hobbs Act robbery and brandishing a firearm during the commission of a crime of violence. The sentencing proceeding was held before United States District Court Judge Brian M. Cogan. Previously, Williams’s co-defendants Darryl Odom, Kenneth Davis and Shaka Davis were sentenced to 171, 165 and 54 months’ imprisonment, respectively, following their guilty pleas.
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 James P. O’Neill, Commissioner, New York City Police Department (NYPD), announced the sentence.
On May 25, 2017, at 5:15 p.m., Williams, armed with a firearm, entered the Court Street jewelry store with Odom and a co-conspirator, while Kenneth Davis stood lookout outside and Shaka Davis waited in a getaway car a few blocks away. To shield their identities and avoid notice by passersby, the defendants disguised themselves in construction-workers gear, including neon vests, hardhats, gloves and dust masks. Inside the store, the defendants beat the store owner, pistol-whipping, punching and kicking him. They then stole hundreds of thousands of dollars in cash and jewelry, and fled the scene. When subsequently tracked down and arrested, law enforcement agents and officers seized several pieces of the stolen jewelry.
“Defendant Lashawn Williams and his co-defendants have now been held accountable for the brutal armed robbery of a jewelry store in busy downtown Brooklyn that not only severely injured the store owner but also endangered the customers and passersby,” stated United States Attorney Donoghue. Mr. Donoghue expressed his grateful appreciation to the law enforcement agents and officers for their work in this case.
“Lashawn Williams and his codefendants committed a brazen armed robbery that endangered innocent lives and left a store owner severely injured and traumatized,” stated ATF Special Agent-in-Charge DeVito. “Williams is yet another example of the type of violent individuals that presents a clear and present danger to the law abiding citizens in the community. ATF and our NYPD partners in the Joint Robbery Task Force stand committed to protecting the public from individuals like Williams; that spread fear and perpetuate violence within the community. I would like to thank the United States Attorney’s Office for their leadership and proactive support in furtherance of this investigation.”
Assistant United States Attorney Josh Hafetz is in charge of the prosecution.
The Defendant Sentenced Today:
LASHAWN WILLIAMS (aka “Ron Johnson”)
Age: 50
Bronx, New YorkDefendants Previously Sentenced:
DARRYL ODOM
Age: 55
New York, New YorkKENNETH DAVIS
Age: 54
Brooklyn, New YorkSHAKA DAVIS
Age: 30
Brooklyn, NY, New YorkE.D.N.Y. Docket No. 17-CR-432 (S-1) (BMC)
Convicted Felon and Organized Crime Associate Sentenced to 72 Months’ Imprisonment for Possession of MachinegunsRead the Press Release
Earlier today, at the federal courthouse in Brooklyn, Paul Ragusa, an associate of the Bonanno and Gambino organized crime families, was sentenced by United States District Judge Pamela K. Chen to 72 months’ imprisonment for possessing nine firearms, including three automatic assault rifles and a silencer. Ragusa possessed the firearms while serving a custodial sentence at a residential re-entry facility in connection with three prior felony convictions. Ragusa pleaded guilty to the firearms charge in October 2018.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, announced the sentence.
“While serving a prior sentence for violent crimes involving machineguns, Ragusa was ready and willing to transport more guns, including assault rifles,” stated United States Attorney Donoghue. “Today’s sentence incapacitates the defendant, who clearly continues to pose a danger to the community.” Mr. Donoghue thanked the Federal Bureau of Investigation (FBI) and New York City Police Department, as well as law enforcement partners in Canada, including the Royal Canadian Mounted Police and the GTA Combined Forces Special Enforcement Unit Public Prosecution Service of Canada, Ontario Regional Office.
Between July and October 2017, Ragusa met with a cooperating witness (CW) whom he knew through their prior affiliation with the Giannini Crew, a criminal enterprise responsible for numerous violent crimes. During recorded conversations with the CW, Ragusa agreed to commit a murder-for-hire. Ragusa stated that he did not need a gun, because he would stick an “ice pick” through the victim’s head.
On October 25, 2017, the CW asked Ragusa if he knew anyone who could transport firearms. Ragusa responded, “Yeah, me! I’ll do it!” On November 2, 2017, Ragusa met an undercover FBI agent who drove him to a warehouse in Nassau County, where Ragusa packed nine firearms, including two AK-47 assault rifles and one M16 rifle, into a large bag. Ragusa and the agent drove to a parking lot in Queens, where Ragusa loaded the firearms into a waiting undercover FBI vehicle. Ragusa was paid $2,000 in cash. Unbeknownst to Ragusa, the firearms were the property of the FBI and had been rendered inoperable.
The government’s case is being handled by the Office’s Organized Crime and Gangs Section. Assistant United States Attorneys Tanya Hajjar and Drew Rolle are in charge of the prosecution.
The Defendant:
PAUL RAGUSA
Age: 48
Brooklyn, New YorkE.D.N.Y. Docket No. 17-CR-613 (PKC)
Anesthesiologist Indicted for Alleged Role in $7 Million Telemedicine Health Care Fraud ConspiracyRead the Press Release
Earlier today, in federal court in Brooklyn, Anna Steiner, an anesthesiologist, was arraigned on an indictment charging her with conspiracy to commit health care fraud for her alleged role in a telemedicine scheme to submit fraudulent claims to Medicare, Medicare Part D plans and private insurance plans. Steiner was previously arrested on a complaint in April 2019, and was arraigned this morning before United States District Judge I. Leo Glasser.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, Brian A. Benczkowski, Assistant Attorney General of the Justice Department’s Criminal Division, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Scott J. Lampert, Special Agent-in-Charge, U.S. Department of Health and Human Services Office of Inspector General, Office of Investigations (HHS OIG), announced the indictment.
“As alleged, Steiner claimed to provide telemedicine services to patients, but in reality, her telecare was a fiction and the claims submitted to Medicare unnecessary and fraudulent,” said United States Attorney Donoghue. “This Office and our law enforcement partners will continue vigorously investigating and prosecuting health care professionals who seek personal enrichment by stealing from a taxpayer-funded program.”
“Fraud against both public and private health care plans is not a victimless crime—the cost of doing business is ultimately transferred to members and taxpayers alike,” said FBI Assistant Director-in-Charge Sweeney. “More importantly, prescribing medication and medical equipment to patients for the sole purpose of turning a profit is not only unethical, it’s dangerous business. Today’s indictment is a victory for the FBI and our partners, the public at large, and those in the medical community who operate within the confines of the law.”
“When physicians boost their profits by billing federal healthcare programs for medically unnecessary services, the Office of Inspector General, along with our law enforcement partners, will thoroughly investigate such deceptive schemes,” said HHS-OIG Special Agent-in-Charge Lampert.
As alleged in the indictment, telemedicine is a service connecting medical providers with individuals who receive healthcare benefits through real-time, interactive audio and video telecommunications. Beginning in approximately January 2015, Steiner and other medical providers purported to practice telemedicine pursuant to agreements with an entity identified in the indictment as “Company-1” and others, in exchange for kickbacks paid for each purported telemedicine encounter with a beneficiary. In fact, Steiner and other medical providers signed numerous prescriptions and order forms for durable medical equipment (DME) and drugs for beneficiaries, when the DME and drugs were not medically necessary and not the result of an actual doctor-patient relationship or examination. Suppliers of DME and pharmacies then submitted to Medicare more than $7 million in claims, on behalf of more than 3,000 beneficiaries, including residents of the Eastern District of New York. Medicare paid more than $3 million on these claims.
The charge in the indictment is an allegation, and the defendant is presumed innocent unless and until proven guilty.
The FBI and HHS-OIG investigated the case, which was brought as part of the Medicare Fraud Strike Force under the supervision by the U.S. Attorney’s Office for the Eastern District of New York and the Criminal Division’s Fraud Section. Trial Attorney Andrew Estes of the Fraud Section is in charge of the prosecution.The Defendant:
ANNA STEINER (also known as “Hanna Wasielewska”)
Age: 63
Valatie, New YorkE.D.N.Y. Docket No. 19-CR-295 (ILG)
Long Island Felon Convicted of Violent Drug Robbery, Firearms Offense and Obstruction of JusticeRead the Press Release
A federal jury in Central Islip returned a guilty verdict today against Spencer Jean for Hobbs Act robbery of a marijuana trafficker, discharging a firearm during a crime of violence, possession with intent to distribute marijuana, conspiracy to obstruct justice and obstruction of justice. The verdict followed a two-week trial before United States District Judge Joanna Seybert. When sentenced, Jean faces a mandatory minimum sentence of 25 years’ imprisonment on the firearms discharge count, and up to a total of 45 years on the other four counts.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, announced the verdict.
The evidence at trial established that on March 20, 2018 in Middle Island, Jean robbed $1,500 worth of marijuana from a drug dealer he had met at a halfway house following a 2016 firearms conviction. During the robbery, Jean brandished a 9mm Glock handgun loaded with hollow-point ammunition, and shot the victim in the leg at close-range. Shortly thereafter, Jean directed a former girlfriend to provide an alibi for him by lying to law enforcement and falsely testifying at trial that he was at a nursing home in Medford at the time of the shooting.
“Spencer Jean is a dangerous felon who used a handgun to commit a violent crime, and in doing so put others in the community at grave risk,” stated United States Attorney Donoghue. “Stopping gun violence in the district is a continuing priority of this Office and our federal and local law enforcement partners, and we will be unrelenting in our efforts to hold violent offenders like Jean accountable.” Mr. Donoghue thanked the Federal Bureau of Investigation, New York Field Office, for its outstanding work on the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. 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 Long Island Criminal Division. Assistant United States Attorneys Anthony Bagnuola and Allen L. Bode are in charge of the prosecution.
The Defendant:
SPENCER JEAN (also known as “Cash”)
Age: 33
Westbury, New YorkE.D.N.Y. Docket No. 19-CR-123 (JS)
Defendant Sentenced to 86 Months in Prison for Defrauding Investors in Binary Options and Cryptocurrency SchemeRead the Press Release
Earlier today, in federal court in Central Islip, Blake Kantor, who formerly operated a binary options company known as Blue Bit Banc and Blue Bit Analytics (“BBB”), was sentenced by United States District Judge Sandra J. Feuerstein to 86 months’ imprisonment for operating a scheme to defraud BBB investors, and BBB investors who also invested in a cryptocurrency known as “ATM Coin,” to be followed by three years’ supervised release. Kantor was also ordered to pay restitution of $806,405 to the victims of his crime, forfeiture of $1.5 million, and forfeiture of approximately $153,000 of stolen proceeds. In November 2018, Kantor pleaded guilty to conspiracy to commit wire fraud, and as part of his plea agreement, he admitted to obstructing the government’s investigation.
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), Jonathan D. Larsen, Special Agent-in-Charge, Internal Revenue Service Criminal Investigation, New York (IRS-CI), and James McDonald, Director, Division of Enforcement, U.S. Commodity Futures Trading Commission (CFTC), announced the sentence.
“Kantor has been held accountable for defrauding investors through his lies and deceit,” stated United States Attorney Donoghue. “This Office and our law enforcement partners will continue to vigorously prosecute those who perpetrate financial frauds and obstruct investigations of their crimes.”
“Mr. Kantor has rightfully been punished for making promises he knew would not be kept. IRS-Criminal Investigation is committed to apprehending those who create elaborate schemes that have no purpose other than to mislead investors by defrauding them for personal gain,” stated IRS-CI Special Agent-in-Charge Larsen.
“The CFTC is committed to working vigorously to root out fraud in all of our markets, including those involving virtual currencies,” stated CFTC Director McDonald. “As this parallel action shows, we will continue to work with our law enforcement partners to ensure that those who engage in this sort of misconduct are identified and held accountable. I am grateful to the U.S. Attorney and his team for their work on this important case.”
In March 2014, Kantor established BBB, and from approximately 2014 to 2017, he and others solicited and received approximately $1.5 million from more than 700 investors in BBB’s binary options. Kantor told investors that they could place binary option trades, or a BBB representative could do so for them, and that the predetermined profits promised them would be based on the actual prices of securities, currencies and other investments at particular points in time. However, Kantor did not inform the investors that a BBB computer software program fraudulently altered data associated with binary options investments, so that the probability of investors earning a profit favored BBB and disadvantaged investors. Kantor also fraudulently persuaded several BBB investors’ to convert their BBB investments into “ATM Coin,” a worthless cryptocurrency that he told investors was worth as much as $600,000.
In October 2017, after FBI agents informed Kantor that they were investigating his involvement in binary options, Kantor directed a co-conspirator to alter BBB customer lists. Around the same time, Kantor deleted emails related to his scheme. When interviewed by the FBI, Kantor falsely stated that he had not been involved in binary options since August 2013.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorneys Bradley T. King and Madeline M. O’Connor are in charge of the prosecution.
The Defendant:
BLAKE KANTOR (also known as “Bill Gordon”)
Age: 44
Fort Lee, New JerseyE.D.N.Y. Docket No. 18-CR-177 (SJF)
Seven Defendants Arrested for Distributing Heroin, Fentanyl and Cocaine Base Near Elementary School and in Public Housing in BrooklynRead the Press Release
Three indictments were unsealed yesterday in federal court in Brooklyn charging seven defendants with narcotics trafficking in the Bushwick neighborhood of Brooklyn. Jessie Smith, Kendall Johnson, also known as “Duke,” Tyrell Spellman, also known as “Rude Boy,” Saquan Warlick, also known as “SB,” Ruben Pabon, Byron Elder, also known as “Bezo,” and Adrian Mattei, also known as “Spanish D,” were arrested yesterday and arraigned before United States Magistrate Judge Lois Bloom.
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 James P. O’Neill, Commissioner, New York City Police Department (NYPD), announced the indictments.
“As alleged, Mattei sold heroin near a public elementary school in Bushwick, and the other defendants sold heroin laced with fentanyl and crack cocaine, inside the Bushwick Houses,” stated United States Attorney Donoghue. “Drug dealers destroy lives and communities and threaten our young people in countless ways. We are working tirelessly with our partners to hold accountable the criminals who contribute to the opioid epidemic and to ensure that the residents of our communities are free from the plague of drug trafficking.”
“The subjects arrested in this case are allegedly pushing the drugs that are killing hundreds of people daily in this country,” stated FBI Assistant Director-in Charge Sweeney. “They also exposed children going to and from school to a scary and violent world of criminal activity that would be difficult for an impressionable child to forget. The FBI Metro Safe Streets Task Force is doing all it can every day to remove these dealers from the communities most impacted by their illicit actions.”
“Crack cocaine, heroin and fentanyl have a well-known history of destroying lives and devastating communities,” stated NYPD Commissioner O’Neill. “That’s why the NYPD and its law enforcement partners work tirelessly to rid our city of these deadly drugs and prosecute those who sell them. I want to thank the investigators who worked on this case. It is their dedication and hard work that keeps our most vulnerable communities – in this case schools and public housing – safe.”
According to the indictments and court documents, between July 2018 and June 2019, Smith and his co-conspirators distributed heroin, fentanyl and crack, and between November 2018 and June 2019, Pabon and Elder distributed more than 28 grams of crack, in and around the Bushwick Houses. In August 2018, Adrian Mattei allegedly distributed heroin within 1,000 feet of Public School 257, an elementary school on Cook Street in Brooklyn. Smith is charged with distributing and possessing over 1,000 grams of heroin.
If convicted, the maximum sentences range from 40 years’ to life imprisonment.
The charges in the indictments are allegations, and the defendants are presumed innocent unless and until proven guilty.
The government’s case is being handled by the Office’s Organized Crime and Gangs Section. Assistant United States Attorneys Nadia E. Moore and Nicholas J. Moscow are in charge of the prosecution.
The Defendants:
E.D.N.Y. Docket No. 19-CR-283 (WFK)
ADRIAN MATTEI (also known as “Spanish D”)
Age: 32
Brooklyn, New YorkE.D.N.Y. Docket No. 19-CR-284 (RJD)
JESSIE SMITH
Age: 29
Brooklyn, New YorkKENDALL JOHNSON (also known as “Duke”)
Age: 32
Brooklyn, New YorkTYRELL SPELLMAN (also known as “Rude Boy”)
Age: 31
Brooklyn, New YorkSAQUAN WARLICK (also known as “SB”)
Age: 21
Brooklyn, New York
E.D.N.Y. Docket No. 19-CR-285 (PKC)
RUBEN PABON
Age: 28
Brooklyn, New YorkBYRON ELDER (also known as “Bezo”)
Age: 43
Brooklyn, New York11 Defendants Charged in Credit Card “Bust Out” SchemeRead the Press Release
Five complaints were unsealed yesterday in federal court in Brooklyn charging 11 defendants in a scheme to defraud banks by using fake, or “synthetic,” identities to obtain credit cards, and making approximately $3 million in charges that were never repaid to the issuing financial institutions. Three of the defendants were also charged with money laundering conspiracy, designed to conceal the source of the proceeds of their scheme. Nine defendants were arrested yesterday. Eight defendants made their initial appearances before United States Magistrate Judge Lois Bloom and were released on bond. One defendant will appear today before Magistrate Judge Bloom. Two defendants are not in custody.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, Angel M. Melendez, Special Agent-in-Charge, Homeland Security Investigations, New York (HSI), and Linda A. Lacewell, Superintendent, New York State Department of Financial Services (DFS), announced the charges.
“As alleged, the defendants operated a ‘bust out’ scheme using fraudulently obtained credit cards to finance expenses, ranging from furniture to real estate and totaling $3 million. Now they will be held accountable,” stated United States Attorney Donoghue. “Together, with our law enforcement partners, we stand committed to protecting financial institutions from fraud.”
“Those arrested today allegedly engaged in fraudulent activities aided by shell companies and collusive merchants to carry out their ‘bust out’ schemes and the laundering of its proceeds, defrauding financial institutions of millions of dollars” stated HSI Special Agent-in-Charge Melendez. “As revealed in this investigation, synthetic identity fraud is ever evolving in sophistication and frequency, creating more challenges for law enforcement and anti-money laundering professionals. HSI New York’s El Dorado Task Force and its partners remain vigilant for emerging criminal trends in its efforts to secure our country’s financial system.”
“While this alleged scheme may seem like a victimless crime, fraud hurts the entire financial system, including banks and credit card companies, with the costs passed down to consumers. DFS is pleased to have partnered with the U.S. Attorney’s Office to bring these defendants to justice, and we will continue to use all of the resources at our disposal to combat fraud,” stated DFS Superintendent Lacewell.
As alleged in court filings, between January 2013 and December 2017, the defendants used synthetic identities created by using various types of personal identification information (names, dates of birth and Social Security numbers) from different individuals to create a fake identity and obtain credit cards from financial institutions. They then used those cards for expenditures that they had no intention to repay, including mortgages on three residential properties in Queens, New York. The defendants also used shell companies, that did little or no legitimate business, to record hundreds of thousands of dollars on the fraudulently obtained credit cards, and then received payment for the sham transactions from financial institutions and credit card processors.
Defendants Bahader Thiara, Hafeez Ali, Mohammad Akhtar, Nadezhda Epshteyn, Cyrus Shroff, Anis Khan, Daljeet Singh, Zainoelbaks Karimbux and Gursimardeep Singh Rai are charged with access device fraud. Bahader Thiara, Perminder Thiara and Shaila Khondkar are also charged with money laundering conspiracy.
If convicted, the defendants charged with access device fraud face up to 10 years’ imprisonment, and up to 20 years for money laundering conspiracy.
The charges are allegations, and the defendants are presumed innocent unless and until convicted.
The government’s case is being handled by the Office’s General Crimes Section. Assistant United States Attorneys Temidayo Aganga-Williams and David Lizmi are in charge of the prosecution. Assistant United States Attorney Tanisha Payne of the Office’s Civil Division is handling forfeiture matters.
The Defendants:
E.D.N.Y. Docket No. 19-MJ-583
MOHAMMED AKHTAR
Age: 43
Flushing, New YorkHAFEEZ ALI
Age: 54
Fort Hamilton, BrooklynE.D.N.Y. Docket No. 19-MJ-566
SHAILA KHONDKAR
Age: 48
Jamaica, New YorkBAHADER THIARA
Age: 42
Queens Village, New YorkPERMINDER THIARA
Age: 40
Queens Village, New YorkE.D.N.Y. Docket No. 19-MJ-570
NADEZHDA EPSHTEYN
Age: 44
Rockaway Park, New YorkCYRUS SHROFF
Age: 45
Rockaway Park, New YorkE.D.N.Y. Docket No. 19-MJ-1029
ZAINOELBAKS KARIMBUX
Age: 50
Bellerose, New YorkGURSIMARDEEP SINGH
Age: 34
Bronx, New YorkE.D.N.Y. Docket No. 19-MJ-571
ANIS KHAN
Age: 32
Sheepshead Bay, New YorkDALJEET SINGH (also known as “Akhtar Iqbal”)
Age: 46
College Point, New YorkTechnipfmc PLC and U.S.-Based Subsidiary Agree to Pay over $296 Million in Global Criminal Fines to Resolve Foreign Bribery CaseRead the Press Release
TechnipFMC plc (TFMC), a publicly traded company in the United States and a global provider of oil and gas services, and its wholly-owned U.S. subsidiary, Technip USA, Inc. (Technip USA), have agreed to pay a combined total criminal fine of more than $296 million to resolve foreign bribery charges brought by law enforcement authorities in the United States and Brazil. TFMC is the product of a 2017 merger between two predecessor companies, Technip S.A. (Technip) and FMC Technologies, Inc. (FMC). The charges arose from two independent bribery schemes: a scheme by Technip to pay bribes to Brazilian officials, and a scheme by FMC to pay bribes to Iraqi officials. In addition, Technip’s former consultant, Zwi Skornicki, pleaded guilty today in connection with the resolution. In 2010, Technip entered into a $240 million resolution with the Department of Justice over bribes paid in Nigeria. Today’s proceedings took place in federal court in Brooklyn before United States District Judge Kiyo A. Matsumoto.
Richard P. Donoghue, United States Attorney for the Eastern District of New York (EDNY), Brian A. Benczkowski, Assistant Attorney General of the Justice Department’s Criminal Division, Robert Johnson, Assistant Director, Federal Bureau of Investigation, Criminal Investigative Division (FBI) and Charles A. Dayoub, Acting Special Agent-in-Charge, FBI, Washington Field Office Criminal Division, made the announcement.
“Today’s resolutions are the result of a continuing multinational effort to hold accountable corporations and individuals who seek to win business through corrupt payments to foreign officials, and who attempt to use the U.S. financial system to carry out those crimes,” said U.S. Attorney Donoghue. “We will continue to prioritize identifying and bringing to justice those who would corrupt the legitimate functions of government for personal financial gain.”
“The conduct admitted to in today’s resolutions was egregious, lasting for years and putting millions into the hands of corrupt officials,” said Assistant Attorney General Benczkowski. “The message sent by this prosecution is that the United States, working with its law enforcement partners abroad, will not hesitate to hold responsible those corporations and individuals who seek to enrich themselves through corruption.”
“Today’s charges demonstrate not only the capabilities of the FBI personnel who investigate international corruption, but the successful results of strong partnerships in the international community,” said Assistant Director Johnson. “In attempting to cheat the system, Technip violated the FCPA. Through the collaboration and dedicated efforts of the FBI and our foreign partners, Technip is being held accountable for perpetrating illegal schemes and justice is served.”
“This case shows the FBI will continue to work tirelessly to hold those accountable who treat corruption and bribery as a common business practice,” said FBI Acting Special Agent-in-Charge Dayoub. “Today’s agreement is the culmination of the hard work of the FBI and Department of Justice and our international partners.”
TFMC entered into a deferred prosecution agreement with the DOJ in connection with a criminal information filed today in the EDNY charging the company with two counts of conspiracy to violate the anti-bribery provisions of the Foreign Corrupt Practices Act (FCPA). In addition, Technip USA pleaded guilty and was sentenced on a one-count criminal information charging it with conspiracy to violate the anti-bribery provisions of the FCPA. Pursuant to its agreement with the DOJ, TFMC will pay a total criminal fine of over $296 million. As part of the deferred prosecution agreement, TFMC committed to implementing rigorous internal controls and to cooperating fully with the DOJ’s ongoing investigation.
In connection with his role in the scheme to bribe Brazilian officials, Skornicki pleaded guilty in the EDNY to a one-count criminal information charging him with conspiracy to violate the FCPA. He is awaiting sentencing.
In related proceedings, TFMC settled with the Advogado-Geral da União (AGU), the Controladoria-Geral da União (CGU) and the Ministério Público Federal (MPF) in Brazil over bribes paid there. The United States will credit the amount the company pays to the Brazilian authorities under their respective agreements, with TFMC paying Brazil approximately $214 million in penalties.
According to admissions and court documents, beginning as early as 2003 and continuing until at least 2013, Technip conspired with others, including Singapore-based Keppel Offshore & Marine Ltd. (KOM), an attorney for KOM, and Skornicki, who served as a consultant to both Technip and KOM, to violate the FCPA by making more than $69 million in corrupt payments to companies associated with Skornicki. Skornicki passed along portions of these payments as bribes to officials at the Brazilian state-owned oil company, Petrobras, to win lucrative contracts. In addition, Technip made more than $5 million in corrupt payments directly to the Workers’ Party in Brazil and Workers’ Party officials in furtherance of the bribery scheme.
The admissions and court documents also establish that beginning as early as 2008 and continuing until at least 2013, FMC conspired to violate the FCPA by paying bribes to at least seven government officials in Iraq, including at the Ministry of Oil, the South Oil Company and the Missan Oil Company, through a Monaco-based intermediary company, to win valuable projects in Iraq.
In the resolutions, TFMC received credit for its substantial cooperation with the DOJ’s investigation and for taking extensive remedial measures. For example, the company separated from, or took disciplinary action against, former and current employees in relation to the misconduct described in the statement of facts to which it admitted as part of the resolution; made changes to its business operations in Brazil to no longer retain commercial consultants; required that certain employees and third parties undergo additional compliance training; and made specific enhancements to the company’s internal controls and compliance program. Accordingly, the criminal fine reflects a 25 percent reduction from the applicable U.S. Sentencing Guidelines fine for the company’s full cooperation and remediation.
In a related enforcement action, in December of 2017, KOM and its U.S. subsidiary, Keppel Offshore & Marine USA, Inc., agreed to pay a combined total criminal fine of more than $422 million to resolve charges with law enforcement authorities in the United States, Brazil and Singapore on related conduct. A former senior member of KOM’s legal department also pleaded guilty in the EDNYand is awaiting sentencing.
The case is being investigated by the FBI’s International Corruption Squad in Washington, D.C. Assistant United States Attorneys Alixandra Smith and Patrick Hein of the Business and Securities Fraud Section of the Eastern District of New York, and Trial Attorneys Dennis R. Kihm, Derek J. Ettinger and Gerald M. Moody, Jr. of the Criminal Division’s Fraud Section, are prosecuting the case.
The governments of Brazil, the United Kingdom, Monaco, Italy, Australia, France and Switzerland provided significant assistance in this matter, as did the Criminal Division’s Office of International Affairs.
The Defendants:
TechnipFMC PLC
TECHNIP USA, INC
ZWI SKORNICKI
Age: 69
Country of Origin: BrazilTechnipFMC Plc and U.S.-Based Subsidiary Agree to Pay over $296 Million in Global Penalties to Resolve Foreign Bribery CaseRead the Press Release
TechnipFMC plc (TFMC), a publicly traded company in the United States and a global provider of oil and gas services, and its wholly-owned U.S. subsidiary, Technip USA, Inc. (Technip USA), have agreed to pay a combined total criminal fine of more than $296 million to resolve foreign bribery charges with authorities in the United States and Brazil. TFMC is the product of a 2017 merger between two predecessor companies, Technip S.A. (Technip) and FMC Technologies, Inc. (FMC). The charges arose out of two independent bribery schemes: a scheme by Technip to pay bribes to Brazilian officials and a scheme by FMC to pay bribes to officials in Iraq. Technip USA and Technip’s former consultant pleaded guilty today in connection with the resolution. In 2010, Technip entered into a $240 million resolution with the Department over bribes paid in Nigeria.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Richard P. Donoghue of the Eastern District of New York, Assistant Director Robert Johnson of the FBI’s Criminal Investigative Division and Acting Special Agent in Charge Charles A. Dayoub of the FBI’s Washington Field Office Criminal Division made the announcement.
“Today’s resolution takes aim at the scourge of bribery, but does so in a fair and evenhanded way,” said Assistant Attorney General Benczkowski. “It is a testament to the strength and effectiveness of international coordination in the fight against corruption, but also an acknowledgement that the Department is fully committed to reaching fair and just resolutions with companies that fully cooperate and remediate.”
“Today’s resolutions are the result of a continuing multinational effort to hold accountable corporations and individuals who seek to win business through corrupt payments to foreign officials, and who attempt to use the U.S. financial system to carry out those crimes,” said U.S. Attorney Donoghue. “We will continue to prioritize identifying and bringing to justice those who would corrupt the legitimate functions of government for personal financial gain.”
“Today’s charges demonstrate not only the capabilities of the FBI personnel who investigate international corruption, but the successful results of strong partnerships in the international community,” said Assistant Director Johnson. “In attempting to cheat the system, Technip violated the FCPA. Through the collaboration and dedicated efforts of the FBI and our foreign partners, Technip is being held accountable for perpetrating illegal schemes and justice is served.”
“This case shows the FBI will continue to work tirelessly to hold those accountable who treat corruption and bribery as a common business practice,” said Acting Special Agent in Charge Dayoub. “Today's agreement is the culmination of the hard work of the FBI and Department of Justice and our international partners.”
TFMC entered into a deferred prosecution agreement with the Department in connection with a criminal information filed today in the Eastern District of New York charging the company with two counts of conspiracy to violate the anti-bribery provisions of the Foreign Corrupt Practices Act (FCPA). In addition, Technip USA pleaded guilty and was sentenced on a one-count criminal information charging it with conspiracy to violate the anti-bribery provisions of the FCPA. Pursuant to its agreement with the Department, TechnipFMC will pay a total criminal fine of over $296 million, including a $500,000 criminal fine paid by Technip USA. As part of the deferred prosecution agreement, TechnipFMC committed to implementing rigorous internal controls and to cooperate fully with the Department’s ongoing investigation.
In connection with the scheme to bribe Brazilian officials, Technip’s former consultant also pleaded guilty in the Eastern District of New York to a one-count criminal information charging him with conspiracy to violate the FCPA. He is awaiting sentencing.
All three cases are assigned to U.S. District Judge Kiyo A. Matsumoto of the Eastern District of New York.
In related proceedings, the company settled with the Advogado-Geral da União (AGU), the Controladoria-Geral da União (CGU) and the Ministério Público Federal (MPF) in Brazil over bribes paid in Brazil. The United States will credit the amount the company pays to the Brazilian authorities under their respective agreements, with TechnipFMC paying Brazil approximately $214 million in penalties.
According to admissions and court documents, beginning in at least 2003 and continuing until at least 2013, Technip conspired with others, including Singapore-based Keppel Offshore & Marine Ltd. (KOM) and their former consultant, to violate the FCPA by making more than $69 million in corrupt payments and “commission payments” to the consultant, companies associated with the consultant and others, who passed along portions of these payments as bribes to Brazialin government officials who were employees at the Brazilian state-owned oil company, Petrobras, in order to secure improper business advantages and obtaining and retaining business with Petrobas for Technip, Technip USA and Joint Venture. In addition, Technip made more than $6 million in corrupt payments to the Workers’ Party in Brazil and Workers’ party officials in furtherance of the bribery scheme.
The admissions and court documents also establish that beginning by at least 2008 and continuing until at least 2013, FMC conspired to violate the FCPA by paying bribes to at least seven government officials in Iraq, including officials at the Ministry of Oil, the South Oil Company and the Missan Oil Company, through a Monaco-based intermediary company in order to win secure improper business advantages and to influence those foreign officials to obtain and retain business for FMC Technologies in Iraq.
In the resolutions with the Department, TFMC received credit for its substantial cooperation with the Department’s investigation and for taking extensive remedial measures. For example, the company separated from or took disciplinary action against former and current employees in relation to the misconduct described in the statement of facts to which it admitted as part of the resolution; made changes to its business operations in Brazil to no longer participate in the type of work where the misconduct at issue arose; required that certain employees and third parties undergo additional compliance training; and made specific enhancements to the company’s internal controls and compliance program. Accordingly, the criminal fine reflects a 25 percent reduction off the applicable U.S. Sentencing Guidelines fine for the company’s full cooperation and remediation.
In a related enforcement action, in December of 2017, KOM and its U.S. subsidiary, Keppel Offshore & Marine USA, Inc., agreed to pay a combined total criminal fine of more than $422 million to resolve charges with authorities in the United States, Brazil and Singapore on related conduct. A former senior member of KOM’s legal department also pleaded guilty and is awaiting sentencing.
The case is being investigated by the FBI’s Washington Field Office International Corruption Squad. Trial Attorneys Dennis R. Kihm, Derek J. Ettinger and Gerald M. Moody, Jr. of the Criminal Division’s Fraud Section, as well as Assistant U.S. Attorneys Alixandra Smith and Patrick Hein of the Eastern District of New York, are prosecuting the case.
The governments of Australia, Brazil, France, Guernsey, Italy, Monaco and the United Kingdom provided significant assistance in this matter, as did the Criminal Division’s Office of International Affairs.
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.
Brooklyn Tax Preparer Pleads Guilty to Preparing Fraudulent Tax Returns for Clients and HimselfRead the Press Release
Earlier today, in federal court in Brooklyn, Emerson Gamory pleaded guilty to two counts of aiding in the preparation of false income tax returns for clients, and one count of filing a false income tax return for himself. When sentenced, Gamory faces a statutory maximum of nine years in prison, as well as forfeiture and a fine. The plea took place before United States Magistrate Judge Robert M. Levy.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, and Richard E. Zuckerman, Principal Deputy Assistant Attorney General of the Justice Department’s Tax Division, announced the guilty plea. Mr. Donoghue and Mr. Zuckerman expressed their grateful appreciation to the Internal Revenue Service-Criminal Investigation for their investigative work on the case.
Gamory owned and operated Emerson Gamory Income Tax Services Inc. (“Gamory Tax”), located in Brooklyn. For the tax years 2012 to 2016, Gamory prepared tax returns for clients that included inflated or fictitious itemized deductions, such as gifts to charity and unreimbursed employee expenses, as well as tax credits for fabricated education expenses, fraudulently reducing clients’ tax liabilities and increasing their refunds. Gamory also prepared false tax returns for Gamory Tax that did not report all gross receipts and tax returns for himself that underreported net profits.
As part of his plea agreement with the government, Gamory admitted causing a tax loss to the United States of greater than $550,000.
The case is being prosecuted by Assistant United States John Vagelatos, Tax Division Assistant Chief Jorge Almonte and Tax Division Trial Attorney Christopher P. O’Donnell.
The Defendant:
EMERSON GAMORY
Age: 53
Canarsie, BrooklynE.D.N.Y. Docket No. 19-CR-268 (CBA)
Brooklyn Tax Preparer Pleads Guilty to Preparing Fraudulent Tax Returns for Clients and HimselfRead the Press Release
Earlier today, in federal court in Brooklyn, Emerson Gamory, 53, pleaded guilty to two counts of aiding in the preparation of false income tax returns for clients, and one count of filing a false income tax return for himself. When sentenced, Gamory faces a statutory maximum of nine years in prison, as well as forfeiture and a fine. The plea took place before United States Magistrate Judge Robert M. Levy.
Richard E. Zuckerman, Principal Deputy Assistant Attorney General of the Justice Department’s Tax Division and Richard P. Donoghue, U.S. Attorney for the Eastern District of New York made the announcement. Mr. Donoghue and Mr. Zuckerman expressed their grateful appreciation to the Internal Revenue Service-Criminal Investigation for their investigative work on the case.
Gamory owned and operated Emerson Gamory Income Tax Services Inc. (Gamory Tax), located in Brooklyn. For the tax years 2012 to 2016, Gamory prepared tax returns for clients that included inflated or fictitious itemized deductions, such as gifts to charity and unreimbursed employee expenses, as well as tax credits for fabricated education expenses, fraudulently reducing clients’ tax liabilities and increasing their refunds. Gamory also prepared false tax returns for Gamory Tax that did not report all gross receipts and tax returns for himself that underreported net profits.
As part of his plea agreement with the government, Gamory admitted causing a tax loss to the United States of greater than $550,000. Sentencing is scheduled for Oct. 18, 2019.
The case is being prosecuted by Assistant United States John Vagelatos, Tax Division Assistant Chief Jorge Almonte and Tax Division Trial Attorney Christopher P. O’Donnell.
Brooklyn Man Pleads Guilty to Securities and Binary Options Fraud SchemeRead the Press Release
Earlier today, at the federal courthouse in Brooklyn, Yehuda Belsky, the owner of Brooklyn-based Y Trading, LLC, pleaded guilty to one count of securities fraud, one count of failure to register as a commodities trading advisor and one count of misappropriation of customer funds. The plea was entered before United States District Court Judge Allyne R. Ross. When sentenced, Belsky faces up to 40 years in prison, restitution in the full amount of each victim’s losses, forfeiture of $800,000 and a fine of up to $5 million.
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 James McDonald, Director, Division of Enforcement, U.S. Commodity Futures Trading Commission (CFTC), announced the guilty plea.
“With his guilty plea today, Belsky is held responsible for deceiving and defrauding investors, and hiding behind an alias to conceal his permanent ban from trading by the CFTC,” stated United States Attorney Donoghue. “This Office, together with our law enforcement partners, will continue to protect the integrity of the financial marketplace from dishonest operators like the defendant.”
In 2008, Belsky was permanently barred by the CFTC from trading in commodity futures transactions and options. Nevertheless, from March 2014 to October 2018, Belsky presented himself to potential investors – using an alias – as an experienced securities and commodities trader. Belsky promised his victims that he would invest their money by trading securities or binary options, a type of investment in which investors are promised an opportunity to be paid predetermined amounts based upon the price of securities, commodities or other investments at particular points in time. Instead of doing as promised, Belsky misappropriated his victims’ investments for his personal use and to reimburse investors who had demanded repayment.
The government’s case is being prosecuted by Trial Attorney Sarah Wilson Rocha of the Criminal Division’s Fraud Section under the supervision of the United States Attorney’s Office, Business and Securities Fraud Section. The Office’s Civil Division is handling forfeiture matters.
The Defendant:
YEHUDA BELSKY (also known as “Jay Bell”)
Age: 47
Brooklyn, New YorkE.D.N.Y. Docket No. 18-CR-504 (ARR)
Staten Island Man Pleads Guilty to Defrauding Investors in Virtual CurrencyRead the Press Release
Earlier today, Patrick McDonnell, also known as “Jason Flack,” pleaded guilty at the federal courthouse in Brooklyn to wire fraud in connection with a scheme to defraud investors in virtual currency. When sentenced, McDonnell faces up to 20 years in prison as well as forfeiture and restitution to his victims. The plea took place before United States District Judge Nicholas G. Garaufis.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, and Philip R. Bartlett, Inspector-in-Charge, United States Postal Inspection Service, New York Division (USPIS), announced the guilty plea.
“McDonnell has admitted that he used old-fashioned deception to defraud investors seeking to trade 21st century currencies,” stated United States Attorney Donoghue. “This Office and our law enforcement partners will continue to prosecute those who swindle the investing public to the full extent of the law.” Mr. Donoghue expressed his grateful appreciation to the United States Commodity Futures Trading Commission (CFTC) for its significant cooperation and assistance in this case.
Between approximately November 2014 and January 2018, McDonnell portrayed himself as an experienced trader in virtual currency, promising investors he would provide trading advice and purchase and trade virtual currency on their behalf. Beginning in approximately May 2016, McDonnell made similar representations through his Staten Island-based company, CabbageTech, Corp., also known as Coin Drop Markets. However, neither McDonnell nor CabbageTech provided investment services. Instead, McDonnell sent investors false balance statements purportedly showing that their investments had been profitable, and stole their money for his personal use. McDonnell defrauded at least 10 victims of at least $194,000 in U.S. currency, 4.41 Bitcoin, 206 Litecoin, 620 Ethereum Classic and 1,342,634 Verge.
The government’s case is being handled by the Office’s Business and Securities Fraud Section. Assistant United States Attorney Hiral D. Mehta is in charge of the prosecution.
The Defendant:
PATRICK MCDONNELL (also known as “Jason Flack”)
Age: 46
Staten Island, New YorkE.D.N.Y. Docket No. 19-CR-148 (NGG)
Four Assistant United States Attorneys, One Paralegal and Three Law Enforcement Partners Recognized by Deputy Attorney General for Their Work on EDNY CasesRead the Press Release
WASHINGTON – Four Assistant United States Attorneys (AUSAs) from the Eastern District of New York (EDNY), one paralegal, and three law enforcement partners were among those recognized by Deputy Attorney General Jeffrey Rosen and Director James Crowell, IV, of the Executive Office for U.S. Attorneys (EOUSA), at the 35th Director’s Awards Ceremony today in Washington D.C. The EDNY was one of 31 districts represented at the ceremony, which was held in the Great Hall at the Robert F. Kennedy Department of Justice Building.
Deputy Attorney General Rosen told the awardees, “Today’s honorees have earned the esteem of their colleagues. But most importantly, you have earned the gratitude of your fellow citizens — whose communities you have made safer, whose lives you have improved, and whose trust you have rewarded.”
EOUSA Director Crowell said, “The Department of Justice is in truth a deployed force. Your work isn’t easy, but it is vital to the functioning and enduring nature of our democracy. As federal prosecutors, we are held to a higher standard, a standard that requires us to ensure that we uphold the rule of law and the fundamental rules of fairness in every trial, every settlement, every plea, and every legal argument in which we are involved.”
Immigration Litigation
AUSA Joseph A. Marutollo was recognized for his exemplary performance in leading the district’s demanding civil immigration practice. Since his appointment as Chief of Immigration Litigation in May 2017, AUSA Marutollo has exhibited exceptional dedication in overseeing more than 800 affirmative and defensive immigration cases and in managing a host of putative class-actions in cases of national significance. He has demonstrated remarkable initiative in taking on key roles in defending challenges to national immigration policies, including high-profile actions seeking to enjoin the rescission of the Deferred Action for Childhood Arrivals, the termination of Temporary Protected Status designations and the use of immigration detainers. Additionally, AUSA Marutollo has creatively and successfully defended the government in a variety of cases at trial and on appeal, and Second Circuit and District Court judges have recognized his advocacy skills. AUSA Marutollo serves as a model of excellence in the handling of the district’s important immigration litigation.
U.S. v. alFarekh
AUSAs Richard Tucker, Douglas Pravda and Saritha Komatireddy, Counterterrorism Section Trial Attorney Alicia Cook, Paralegal Specialist Wayne Colon, Federal Bureau of Investigation Acting Supervisory Special Agent Shawn Dolinar and New York City Police Department Detective John Darino were recognized for their outstanding performance in the prosecution and conviction of Muhanad alFarekh. al-Farekh, a U.S. citizen who left college and traveled to the Federally Administered Tribal Areas of Pakistan, participated in a vehicle-borne improvised explosive device attack against a U.S. military base in Khost, Afghanistan, in 2009, and eventually ascended to a leadership role in alQaeda’s external operations group. The investigation took the team around the globe to locales such as Afghanistan and Morocco. They deposed an al-Qaeda facilitator in a Middle Eastern country under grueling conditions to secure critical testimony. They introduced battlefield forensic evidence and computer media acquired in Afghanistan under highly sensitive circumstances. The team also successfully litigated a variety of unprecedented and classified issues. Their victory after a three-week trial in September 2017 resulted in a 45-year prison sentence imposed in March 2018.
EOUSA provides oversight, general executive assistance, and direction to the 94 United States Attorneys’ offices around the country. For more information on EOUSA and its mission, visit http://www.justice.gov/usao. For more information about the United States Attorney’s Office for the Eastern District of New York, visit www.justice.gov/usao/nye.Brooklyn Man Pleads Guilty to Murder-For-Hire and Marijuana TraffickingRead the Press Release
Leon Campbell, a citizen of Jamaica, pled guilty yesterday at the federal courthouse in Brooklyn to murder-for-hire conspiracy and conspiracy to distribute marijuana. When sentenced, Campbell faces up to 30 years in prison, as well as forfeiture and a fine of up to $1 million. The plea took place before United States Magistrate Judge Robert M. Levy.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, announced the guilty plea.
“Leon Campbell showed total disregard for human life, seeking to have a hired gun kill someone he suspected of being a federal informant,” stated United States Attorney Donoghue. “The commendable work by our law enforcement partners prevented a murder from taking place.” Mr. Donoghue extended his grateful appreciation to the Bureau of Alcohol, Tobacco, Firearms and Explosives, U.S. Drug Enforcement Administration (DEA), U.S. Immigration and Customs Enforcement, the United States Marshal Service, and the New York City Police Department for their assistance during the investigation.
According to court filings and facts presented at Campbell’s guilty plea and co-defendant Ronald Williams’ trial last year, on April 26, 2013, DEA agents followed Campbell as he was making a delivery of marijuana to a customer in Brooklyn. Campbell spotted the agents and fled, suspecting his customer was an informant who had provided information to federal law enforcement. On April 30, 2013, Campbell called Williams and offered to pay him $5,000 to kill the suspected informant. Williams agreed to commit the murder and chose a gang member to carry out the contract. Subsequently, when Campbell told Williams that he would personally kill the suspected informant but needed an alibi, Williams responded that it would be better to pay someone else to do the job and “get it right.” The murder was not carried out.
Williams was convicted in January 2018 of all counts, including murder-for-hire conspiracy, following a two-week trial before United States District Judge LaShann DeArcy Hall.
The government’s case is being handled by the Office’s International Narcotics and Money Laundering Section. Assistant United States Attorneys Nathan D. Reilly and Hiral D. Mehta are in charge of the prosecution.
The Defendant:LEON CAMPBELL (also known as “Country”)
Age: 41
Brooklyn, New YorkE.D.N.Y. Docket No. 13-CR-419 (LDH)
Jury Finds Nxivm Leader Keith Raniere Guilty of All CountsRead the Press Release
Keith Raniere, the founder and leader of Nxivm, was convicted today by a federal jury in Brooklyn of all seven counts of a superseding indictment charging him with racketeering and racketeering conspiracy; sex trafficking, attempted sex trafficking and sex trafficking conspiracy; forced labor conspiracy and wire fraud conspiracy. The racketeering offense included predicate acts of extortion, identity theft, and production and possession of child pornography. The verdict followed more than six weeks of trial before United States District Judge Nicholas G. Garaufis. When sentenced, Raniere faces a mandatory minimum of 15 years’ imprisonment, and up to life in prison.
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 Jonathan D. Larsen, Special Agent-in-Charge, Internal Revenue Service-Criminal Investigation (IRS-CI), announced the verdict.
“As found by the jury, Keith Raniere masqueraded as a self-help guru to gain the trust of his followers, and then exploited them for his own financial gain and sexual gratification,” stated United States Attorney Donoghue. “Raniere and his co-conspirators will now face the consequences for the serious crimes they committed and the profound harm they have caused their victims.” Mr. Donoghue extended his grateful appreciation to Homeland Security Investigations, the New York State Police and the United States Attorney’s Office for the Northern District of New York for their assistance during the investigation and prosecution.
“Nxivm’s so called self-help programs did anything but help the women they professed to empower,” stated FBI Assistant Director-in-Charge Sweeney. “What’s been proven today is that Keith Raniere preyed on the vulnerabilities of his many female victims, sold them lies and other falsehoods, and committed horrifying acts of coercion. This guilty verdict is a welcome end to a case that highlighted the many avenues of criminal activity pursued by a man whose intentions were deplorable beyond belief.”
“IRS Criminal Investigation plays a pivotal role in tracing the illicit funds from such horrendous criminal behavior,” stated IRS-CI Special Agent-in-Charge Larsen. “We proudly stand with our law enforcement partners in uncovering such crimes, and justice has been served.”
As proven at trial, in 2003, Raniere founded Nxivm, a purported self-help organization headquartered in Albany, New York, with centers operating elsewhere in the United States, Mexico and Canada. Raniere established Executive Success Programs (“ESP”), a series of purported self-help workshops in which participants paid thousands of dollars to attend classes based on Raniere’s teachings. In 2015, Raniere added a secret society within Nxivm called DOS or “The Vow,” with levels of women “slaves” headed by “masters.” The goal of the criminal enterprise was to promote Raniere, for example, by exalting his teachings and ideology, and to recruit new members, including as sexual partners for Raniere.In the course of their racketeering enterprise, Raniere and his co-conspirators committed multiple crimes, including sex trafficking, forced labor, computer hacking, fraud and identity theft. Raniere maintained command and control over his DOS members by collecting “collateral” from them, such as sexually explicit photos and letters making accusations against their loved ones that would be embarrassing if disclosed. For example, “Nicole,” a victim witness, testified that she was coerced into providing labor and services for Nxivm, which included taking photographs of naked women members and engaging in sex acts with Raniere, under threat of release of her collateral. DOS slaves were also branded with Raniere’s initials in their pelvic area using a cauterizing pen. The members of the “inner circle” were rewarded with financial opportunities and increased power and status within the enterprise.
Raniere and his co-conspirators also worked to support Raniere and protect Nxivm from perceived enemies. Raniere conspired with two of his closest associates in Nxivm to have “Daniela,” a member of his inner circle at the time, cross the Canadian border into the U.S. with a fake identification card bearing the name of a dead woman. Daniela testified that she assisted Raniere hack into the email accounts of persons he believed were enemies of Nxivm.
Among Raniere’s crimes was sexual exploitation of a child and possession of child pornography. Specifically, Raniere began having sex with a victim member identified as “Camila” when she was 15-years-old and he was 45. Raniere also took naked photographs of Camila when she was a minor.
Each of Raniere’s co-defendants previously pleaded guilty. On March 12, 2019, Nancy Salzman, Nxivm’s president and co-founder, pleaded guilty to racketeering conspiracy. On March 25, 2019, Lauren Salzman, a first-line master over slaves in DOS, pleaded guilty to racketeering and racketeering conspiracy. On April 8, 2019, Allison Mack, a first-line master, pleaded guilty to racketeering and racketeering conspiracy. On April 19, 2019, Clare Bronfman, a high-ranking member of Nxivm’s Executive Board, pleaded guilty to conspiracy to conceal and harbor illegal aliens for financial gain, and fraudulent use of identification documents, and Kathy Russell, Nxivm’s bookkeeper, pleaded guilty to visa fraud. They are awaiting sentencing.
The government’s case is being handled by the Office’s Organized Crime and Gangs Section. Assistant United States Attorneys Moira Kim Penza, Tanya Hajjar, Mark J. Lesko and Kevin M. Trowel are in charge of the prosecution. Assistant United States Attorney Karin Orenstein of the Office’s Civil Division is handling forfeiture matters.
The Defendant:
KEITH RANIERE (also known as “Vanguard” and “Grandmaster”)
Age: 58
Waterford, New YorkThe Defendants Who Previously Pleaded Guilty:
CLARE BRONFMAN
Age: 40
Clifton Park, New YorkALLISON MACK
Age: 36
Brooklyn, New YorkKATHY RUSSELL
Age: 61
Clifton Park, New YorkLAUREN SALZMAN
Age: 43
Clifton Park, New YorkNANCY SALZMAN (also known as “Prefect”)
Age: 65
Clifton Park, New YorkE.D.N.Y. Docket No. 18-CR-204 (S-2) (NGG)
Son of Victim Slain at McDonalds Drive-Through Indicted in Murder-For-Hire ConspiracyRead the Press Release
A second superseding indictment was unsealed today in federal court in Brooklyn charging Anthony Zottola, Sr., Jason Cummings, Alfred Lopez, Julian Snipe and five previously charged defendants with murder-for-hire conspiracy and related charges in connection with the fatal shooting of Zottola, Sr.’s father, Sylvester Zottola, on October 4, 2018, and the near-fatal shooting of his brother, Salvatore Zottola, on July 11, 2018. The four new defendants were arrested last night and this morning, and will be arraigned this afternoon before United States Chief Magistrate Judge Roanne L. Mann. A fifth new defendant, Branden Peterson, is a fugitive.
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 James P. O’Neill, Commissioner, New York City Police Department (NYPD), announced the superseding indictment.
“As alleged, Zottola Sr. set in motion a deadly plot to kill his father and brother, with Bloods gang members carrying out extreme acts of violence to collect a payoff for the hits,” stated United States Attorney Donoghue. “Zottola. Sr. and Shelton referred to the planned murders as ‘filming’ a movie, but thanks to the outstanding work of law enforcement, the ending of their plot will take place in a federal courthouse.”
“There is apparently no love lost between Mr. Zottola and his family members, so much so he allegedly hired members of the Bloods gang to kill his brother and father,” stated FBI Assistant Director-in-Charge Sweeney. “After several botched attempts on both mens’ lives, sadly his father did not survive the last attack. The FBI and our law enforcement partners have evidence of astounding violence in this case, and now Zottola and all his alleged hitmen will face justice.”
“The co-conspirators in this case committed acts of extreme violence, with murder as their ultimate goal,” stated NYPD Commissioner O’Neill. “I want to thank the investigators who worked on this case to bring these violent criminals to justice.”
According to court filings, Anthony Zottola, Sr. allegedly hired co-defendant Bushawn Shelton, a member of the Bloods street gang, to carry out the murders of his father and his brother. Shelton, in turn, recruited others to commit the murders. In text messages with Shelton, Zotolla, Sr. referred to the planned murder as “the filming” and the “final scene” – with his father as “the actor” and the hit man as “the director.”
In furtherance of the plot, between September 2017 and October 11, 2018, multiple violent attacks were committed against Sylvester Zottola and Salvatore Zottola. On November 26, 2017, Sylvester Zottola was menaced at gunpoint by a masked individual. On December 27, 2017, three men invaded Sylvester Zottola’s residence, struck Zottola on the head with a gun, stabbed him multiple times and slashed his throat. Zottola survived the attack.
On July 11, 2018, a gunman shot Salvatore Zottola multiple times in the head, chest and hand in front of his residence. Zottola survived the shooting. On October 4, 2018, Sylvester Zottola was shot to death in his vehicle as he waited to pick up his order at a McDonalds restaurant drive-through in the Bronx. Shortly thereafter, a co-conspirator texted Shelton, “Done.” Minutes later, Shelton texted Zottola, Sr., “Can we party today or tomorrow?” After agreeing to meet the following day, Zottola, Sr. assured Shelton that he would have his payment ready soon: “I have the cases of water in a day or so.” A photograph recovered from one of Shelton’s cellular telephones depicts a cardboard box of bottled water, as well as over $200,000 in banded currency. On October 7, 2019, Zottola, Sr. texted Shelton, “All good. Did you drink the water. Was it the right one,” to which Shelton responded, “Definitely was the right one thanks I was able to water the plants and get some of them squared away.”
Earlier this morning, law enforcement executed search warrants at three of the defendants’ residences. A handgun was recovered at Snipes’ apartment, and approximately $100,000 in U.S. currency was seized at Zottola, Sr.’s home.
Previously charged for their roles in the murder-for-hire plot and awaiting trial are Shelton, Herman Blanco, Arthur Codner, Kalik McFarlane and Himen Ross.
If convicted of conspiring to commit a murder-for-hire, the defendants face a mandatory penalty of life imprisonment, or possibly the death penalty.
The charges in the superseding indictment are allegations, and the defendants are presumed innocent unless and until proven guilty.
The government’s case is being prosecuted by the Office’s Organized Crime and Gangs Section. Assistant United States Attorneys Lindsay K. Gerdes and Kayla C. Bensing are in charge of the prosecution.
Defendants Arrested Today:
ANTHONY ZOTTOLA, SR.
Age: 41
Larchmont, New YorkJASON CUMMINGS (also known as “The Hat” and “Stacks”)
Age: 31
Brooklyn, New YorkALFRED LOPEZ (also known as “Aloe”)
Age: 36
New York, New YorkJULIAN SNIPE (also known as “Biz” and “Bizzzy”)
Age: 32
Bronx, New YorkDefendants Previously Indicted:
HERMAN BLANCO (also known as “Taliban” and “L”)
Age: 34
Bronx, New YorkARTHUR CODNER (also known as “Feddi,” “Feddi Bossgod,” and “Scary”)
Age: 31
New Hampton, New YorkKALIK MCFARLANE (also known as “Dottkom” and “Dot”)
Age: 37
Brooklyn, New YorkHIMEN ROSS (also known as “Ace” and “A Boggie”)
Age: 33
Bronx, New YorkBUSHAWN SHELTON (also known as “Shelz”)
Age: 35
Brooklyn, New YorkE.D.N.Y. Docket No. 18-CR-609 (S-2) (RJD)
Defendant Who Conspired to Murder U.S. Soldiers Sentenced to 26 Years ImprisonmentRead the Press Release
Earlier today, in federal court in Brooklyn, Faruq Khalil Muhammad ‘Isa was sentenced to 26 years imprisonment to be followed by a lifetime of supervised release by United States District Judge Roslynn R. Mauskopf for his role in conspiring to murder U.S. soldiers in Iraq. ‘Isa pleaded guilty to the charge of conspiring to kill Americans abroad in March 2018. The Court entered a judicial order of removal to Canada.
Assistant Attorney General for National Security John C. Demers, U.S. Attorney Richard P. Donoghue for the Eastern District of New York, Assistant Director-in-Charge William F. Sweeney Jr. of the FBI’s New York Field Office and Commissioner James P. O’Neill of the New York City Police Department (NYPD) announced the sentence.
“Today’s sentence brings some measure of earthly justice to an individual involved in the deaths of five service members, but it cannot begin to compensate for the evil he contributed to or alleviate the pain of those families whose lives he changed forever,” said Assistant Attorney General Demers. “We in the National Security Division are inspired in our work by those who put their lives on the line to keep us safe.”
“With today’s sentence, ‘Isa has been held accountable for his role in a deadly conspiracy that resulted in the tragic loss of five U.S. soldiers in Iraq,” stated United States Attorney Donoghue. “This Office, together with the FBI, the NYPD and all the members of the FBI Joint Terrorism Task Force, will take every step necessary to apprehend and prosecute terrorists, wherever they are located, in furtherance of our fundamental mission of protecting the American people.”
“Muhammad ‘Isa’s efforts to facilitate a suicide attack, one that ultimately resulted in the death of five young American soldiers in Iraq, has landed him a sentence of more than two decades behind bars,” said FBI Assistant Director-in-Charge Sweeney. “While this sentence is significant, it doesn’t come close to mitigating the pain and suffering these soldiers’ families will face for the rest of their lives. As this case comes to a close, let us remember the names of those who were murdered that day, and vow to never forget the daily sacrifices made by the brave men and women of the U.S. armed forces and their families.”
“The NYPD will do everything in its power to combat terror, and to support the brave men and women serving our country overseas,” said NYPD Commissioner O’Neill. “This includes defeating deadly terrorist conspiracies that target U.S. troops. I want to commend our partners in the U.S. Attorney’s Office and the FBI for helping to bring Mr. ‘Isa’s to justice for his role in this tragic and cowardly act.”
According to court documents, the defendant was a member of a multinational terrorist network that conducted multiple suicide bombings in Iraq. The network orchestrated an attack on the United States Military’s Forward Operating Base Marez (FOB Marez) in Mosul, Iraq, on April 10, 2009. A truck laden with explosives drove to the gate of FOB Marez and exchanged fire with Iraqi police officers guarding the base and then with an American convoy exiting the base. The truck detonated alongside the last vehicle in the U.S. convoy, leaving a 60-foot crater in the ground. Five American soldiers were killed in the blast. They are: Staff Sergeant Gary L. Woods, 24, of Lebanon Junction, Kentucky; Sergeant First Class Bryan E. Hall, 32, of Elk Grove, California; Sergeant Edward W. Forrest Jr., 25, of St. Louis, Missouri; Corporal Jason G. Pautsch, 20, of Davenport, Iowa; and Army Private First Class Bryce E. Gaultier, 22, from Cyprus, California.
While residing in Canada, the defendant was in communication with Syria- and Iraq-based members of the facilitation network, as well as certain individuals who conducted the April 10, 2009 attack, as well as a group of individuals whose efforts to travel to Iraq to conduct suicide attacks were ultimately unsuccessful. The defendant knowingly undertook efforts to assist the prospective suicide bombers achieve their desired result by suggesting a contact to facilitate travel for the would-be attackers from Syria into Iraq, as well as by offering words of encouragement and religious guidance.
‘Isa has been incarcerated since his extradition from Canada in January 2015.
The government’s case is being handled by the Office’s National Security and Cybercrime Section. Assistant United States Attorney Alexander A. Solomon is in charge of the prosecution with the assistance of the National Security Division’s Counterterrorism Section.
Defendant Sentenced to 26 Years’ Imprisonment for Conspiring to Murder Five U.S. SoldiersRead the Press Release
Earlier today, in federal court in Brooklyn, Faruq Khalil Muhammad ‘Isa was sentenced to 26 years’ imprisonment to be followed by a lifetime of supervised release by United States District Judge Roslynn R. Mauskopf for his role in conspiring to murder U.S. soldiers in Iraq. ‘Isa pleaded guilty to the charge in March 2018. The Court entered a judicial order of removal to Canada.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, John C. Demers, Assistant Attorney General for National Security, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and James P. O’Neill, Commissioner, New York City Police Department (NYPD), announced the sentence.
“With today’s sentence, ‘Isa has been held accountable for his role in a deadly conspiracy that ultimately contributed to the tragic loss of five U.S. soldiers in Iraq,” stated United States Attorney Donoghue. “This Office, together with the FBI, the NYPD and all the members of the FBI Joint Terrorism Task Force, will take every step necessary to apprehend and prosecute terrorists, wherever they are located, in furtherance of our fundamental mission of protecting the American people.”
“Today’s sentence brings some measure of earthly justice to an individual involved in the deaths of five service members, but it cannot begin to compensate for the evil he contributed to or alleviate the pain of those families whose lives he changed forever,” said Assistant Attorney General Demers. “We in the National Security Division are inspired in our work by those who put their lives on the line to keep us safe.”
“Muhammad ‘Isa’s efforts to facilitate a suicide attack, one that ultimately resulted in the death of five young American soldiers in Iraq, has landed him a sentence of more than two decades behind bars,” stated FBI Assistant Director-in-Charge Sweeney. “While this sentence is significant, it doesn’t come close to mitigating the pain and suffering these soldiers’ families will face for the rest of their lives. As this case comes to a close, let us remember the names of those who were murdered that day, and vow to never forget the daily sacrifices made by the brave men and women of the U.S. armed forces and their families.”
“The NYPD will do everything in its power to combat terror, and to support the brave men and women serving our country overseas,” stated NYPD Commissioner O’Neill. “This includes defeating deadly terrorist conspiracies that target U.S. troops. I want to commend our partners in the U.S. Attorney’s Office and the FBI for helping to bring Mr. ‘Isa to justice for his role in this tragic and cowardly act.”
The defendant was a member of a multinational terrorist network that helped those who wished to carry out suicide bombings travel to Iraq. On April 10, 2009, terrorists associated with the network carried out an attack on the United States Military’s Forward Operating Base Marez (“FOB Marez”) in Mosul, Iraq. Terrorists drove a truck laden with explosives drove to the gate of FOB Marez, and exchanged fire with Iraqi police officers guarding the base and then with an American convoy exiting the base. The truck detonated alongside the last vehicle in the convoy, leaving a 60-foot crater in the ground. Five American soldiers were killed in the blast: Staff Sergeant Gary L. Woods, 24, of Lebanon Junction, Kentucky; Sergeant First Class Bryan E. Hall, 32, of Elk Grove, California; Sergeant Edward W. Forrest Jr., 25, of St. Louis, Missouri; Corporal Jason G. Pautsch, 20, of Davenport, Iowa; and Army Private First Class Bryce E. Gaultier, 22, of Cyprus, California.
While residing in Canada, the defendant communicated with Syria- and Iraq-based members of the terrorist network, including certain individuals who conducted the April 10, 2009 attack. In those communications, the defendant suggested a contact to facilitate travel for the attackers from Syria into Iraq, in addition to offering words of encouragement and religious guidance. He also communicated with a group of prospective suicide bombers whose efforts to travel to Iraq were ultimately unsuccessful.
‘Isa has been incarcerated since his extradition from Canada in January 2015.
The government’s case is being handled by the Office’s National Security and Cybercrime Section. Assistant United States Attorney Alexander A. Solomon is in charge of the prosecution with the assistance of the National Security Division’s Counterterrorism Section.
The Defendant:
FARUQ KHALIL MUHAMMAD ‘ISA
Age: 51
Toronto, CanadaE.D.N.Y. Docket No. 11-CR-819 (RRM)
New York Man Sentenced to 20 Years in Prison for Attempting to Join ISIS in YemenRead the Press Release
Earlier today in federal court in Brooklyn, Mohamed Rafik Naji was sentenced to 20 years imprisonment to be followed by five years supervised release by United States District Judge Frederic Block for attempting to provide material support or resources to the Islamic State of Iraq and al-Sham (ISIS), a foreign terrorist organization. Naji pleaded guilty to the charge in February 2018.
Assistant Attorney General for National Security John C. Demers, U.S. Attorney Richard P. Donoghue for the Eastern District of New York, Assistant Director-in-Charge William F. Sweeney Jr. of the FBI’s New York Field Office and Commissioner James P. O’Neill of the New York City Police Department (NYPD) announced the sentence.
“Time and again, the United States has brought to justice those who have traveled from here to try and fight for ISIS,” said Assistant Attorney General Demers. “This is just what Naji did. Today’s sentence holds him accountable for his crime and I want to thank the agents, analysts, and prosecutors who are responsible for this result.”
“With today’s sentence, Naji has been held accountable for trying to enter a foreign war zone and join ISIS’ murderous cause,” said United States Attorney Donoghue. “This Office, together with the FBI, the NYPD and all the members of the FBI Joint Terrorism Task Force will take every step necessary to incapacitate terrorists like Naji and protect the American people. I commend the Task Force for its outstanding work in this case.”
“Extremists like Mr. Naji believe murdering innocent people advances their political agendas,” said FBI Assistant Director-in-Charge Sweeney. “In the end, Mr. Naji, like many others before him, find the only thing their actions lead to is a different vantage point from which to watch the world pass by – through the steel bars of a federal prison. Mr. Naji will remember today as sentencing day, nothing more. Working day in and day out with our partners on the FBI Joint Terrorism Task Force, safeguards have been put in place to secure Times Square and other popular attractions so any would be terrorist will find it extremely difficult to carry out their plans. Our unified goal is to remain proactive and prevent acts before they occur, and once again I would like to thank all of those who ensure our safety.”
“This case is a reminder that New York City remains the top target for terrorism in the U.S.,” said NYPD Commissioner O’Neill. “The NYPD and its partners in law enforcement will never relent in the fight against terror. I want to thank the dedicated members of the JTTF who worked on this investigation to keep our City safe and the prosecutors from the Eastern District of New York.”
By late 2014, Naji had become a committed supporter of ISIS’s murderous cause as he repeatedly promoted and distributed ISIS propaganda with violent themes and messages on social media. In March 2015, Naji traveled from New York to Yemen in an effort to join ISIS. Naji also used social media to advise another person he could travel to join ISIS, but unbeknownst to Naji, that individual was a confidential source of information for the government (the CS). In an online conversation with the CS, Naji proclaimed his allegiance to ISIS, stating, “I belong to Islamic state only.”
Following his return to the United States in September 2015, Naji continued to express his support for ISIS and violent jihad. In July 2016, following the ISIS-inspired terrorist truck attack in Nice, France, that killed scores of innocent civilians, Naji told the CS how easy it would be to carry out a similar attack in Times Square, explaining that ISIS “want[s] an operation in Times Square” and stating that an ISIS “reconnaissance group . . . put up scenes of Times Square.” Naji further explained, “if there is a truck, I mean a garbage truck and one drives it there to Times Square and crushes them . . . Times Square day.”
Naji has been incarcerated since his arrest in Brooklyn in November 2016.
The government’s case is being handled by the Office’s National Security and Cybercrime Section. Assistant United States Attorney Ian C. Richardson is in charge of the prosecution, with assistance from Trial Attorney Jacqueline L. Barkett of the National Security Division’s Counterterrorism Section.
Brooklyn Man Sentenced to 20 Years’ Imprisonment for Attempting to Join ISIS in YemenRead the Press Release
Earlier today, in federal court in Brooklyn, Mohamed Rafik Naji was sentenced to 20 years’ imprisonment by United States District Judge Frederic Block for attempting to provide material support or resources to the Islamic State of Iraq and al-Sham (ISIS), a foreign terrorist organization. Naji pleaded guilty to the charge in February 2018.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, John C. Demers, Assistant Attorney General for National Security, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and James P. O’Neill, Commissioner, New York City Police Department (NYPD), announced the sentence.
“With today’s sentence, Naji has been held accountable for trying to enter a foreign war zone and join ISIS’ murderous cause,” stated United States Attorney Donoghue. “This Office, together with the FBI, the NYPD and all the members of the FBI Joint Terrorism Task Force will take every step necessary to incapacitate terrorists like Naji and protect the American people. I commend the Task Force for its outstanding work in this case.”
“Time and again, the United States has brought to justice those who have traveled from here to try and fight for ISIS,” said Assistant Attorney General Demers. “This is just what Naji did. Today’s sentence holds him accountable for his crime and I want to thank the agents, analysts, and prosecutors who are responsible for this result.”
“Extremists like Mr. Naji believe murdering innocent people advances their political agendas,” said FBI Assistant Director-in-Charge Sweeney. “In the end, Mr. Naji, like many others before him, find the only thing their actions lead to is a different vantage point from which to watch the world pass by – through the steel bars of a federal prison. Mr. Naji will remember today as sentencing day, nothing more. Working day in and day out with our partners on the FBI Joint Terrorism Task Force, safeguards have been put in place to secure Times Square and other popular attractions so any would be terrorist will find it extremely difficult to carry out their plans. Our unified goal is to remain proactive and prevent acts before they occur, and once again I would like to thank all of those who ensure our safety.”
“This case is a reminder that New York City remains the top target for terrorism in the U.S.,” said NYPD Commissioner O’Neill. “The NYPD and its partners in law enforcement will never relent in the fight against terror. I want to thank the dedicated members of the JTTF who worked on this investigation to keep our City safe and the prosecutors from the Eastern District of New York.”
By late 2014, Naji had become a committed supporter of ISIS as he repeatedly promoted its mission and distributed the terrorist group’s propaganda with violent themes and messages on social media. In March 2015, Naji traveled from New York City to Yemen in an effort to join ISIS. Naji also used social media to advise another person he could travel to join ISIS, but unbeknownst to Naji, that individual was a confidential source of information for the government (the “CS”). In an online conversation with the CS, Naji proclaimed his allegiance to ISIS, stating, “I belong to Islamic state only.”
Following his return to the United States in September 2015, Naji continued to express support for ISIS and violent jihad. In July 2016, following an ISIS-inspired terrorist truck attack in Nice, France that killed scores of civilians, Naji told the CS how easy it would be to carry out a similar attack in Times Square: “[ISIS] want an operation in Times Square” and “[an ISIS] reconnaissance group . . . put up scenes of Times Square.” Naji added: “if there is a truck, I mean a garbage truck and one drives it there to Times Square and crushes them . . . Times Square day.”
Naji has been incarcerated since his arrest in Brooklyn in November 2016.
The government’s case is being handled by the Office’s National Security and Cybercrime Section. Assistant United States Attorney Ian C. Richardson is in charge of the prosecution, with assistance from Trial Attorney Jacqueline L. Barkett of the National Security Division’s Counterterrorism Section.
The Defendant:
MOHAMED RAFIK NAJI
Age: 40
Brooklyn, New YorkE.D.N.Y. Docket No. 16-CR-653 (FB)
Brooklyn Felon Convicted of Possession of a Firearm and Ammunition Used During a Shooting at the Louis H. Pink HousesRead the Press Release
Earlier today, a federal jury in Brooklyn returned a guilty verdict against Shakeem Boykins charging him with being a felon in possession of a firearm and ammunition. The verdict followed a five-day trial before United States District Judge Edward R. Korman. When sentenced, Boykins faces up to 10 years’ imprisonment.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, announced the verdict.
“The danger posed by a felon possessing a firearm was brought into sharp focus in this case, where the defendant shot a woman simply for being in a certain part of the Pink Houses against his wishes,” stated United States Attorney Donoghue. This Office and its law enforcement partners will do everything in our collective power to stop gun violence, including prosecuting those who illegally possess guns to the fullest extent of the law.” Mr. Donoghue expressed his grateful appreciation to the Federal Bureau of Investigation (FBI), New York Field Office, Safe Streets Task Force, which is comprised of FBI special agents and New York City Police Department (NYPD) detectives.
The evidence at trial established that on the afternoon of October 5, 2017, outside the Louis H. Pink Houses on Linden Boulevard in East New York, Boykins approached a woman with whom he and his friends had been in a dispute, and told her to leave the area. When she refused, Boykins rode away on a bicycle and returned with a handgun. Boykins then shot the woman twice at close range, striking her in the left leg. A .40 caliber cartridge casing was recovered at the scene. Subsequently, the NYPD recovered from his associates the .40 Glock semiautomatic handgun that Boykins had used in the shooting.
As presented at trial, Boykins was convicted in 2013 of a felony offense in Queens County Supreme Court. In addition, he was convicted in federal court in 2015 of being a member of a heroin and crack cocaine drug-trafficking conspiracy based in the Pink Houses.
This case was brought as part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 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 Attorneys James P. McDonald and Margaret E. Gandy are in charge of the prosecution.
The Defendant:
SHAKEEM BOYKINS
Age: 24
Brooklyn, New YorkE.D.N.Y. Docket No. 18-CR-338 (ERK)
Attorney Sentenced to 18 Months’ Imprisonment for Obstructing Federal Grand Jury Investigation of His ClientRead the Press Release
Earlier today, at the federal courthouse in Brooklyn, John Servider was sentenced by United States District Judge Eric N. Vitaliano to 18 months’ imprisonment and fined $1,000 for obstructing a grand jury investigation in the Eastern District of New York. Specifically, Servider conspired to alter, and did alter, records responsive to a grand jury subpoena by removing the name of his client, Vincent Vertuccio. From 1988 until his conviction at trial in May 2018, Servider had been licensed by the State of New York to practice law.
Richard P. Donoghue, United States Attorney for the Eastern District of New York and Jonathan D. Larsen, Acting Special Agent-in-Charge, Internal Revenue Service-Criminal Investigation, New York (IRS-CI), Michael C. Mikulka, Special Agent-in-Charge, United States Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations (DOL OIG), and Michael Nestor, Inspector General, Port Authority of New York and New Jersey, Office of Inspector General (PA-OIG), announced the sentence.
“With today’s sentence, Servider pays the price for violating the law and his oath as an attorney by impeding a federal grand jury investigation of his client,” stated United States Attorney Donoghue. “Crimes like those committed by the defendant undermine the integrity of our criminal justice system. Attorneys who commit such crimes are on notice that this Office will prosecute them to the fullest extent of the law.”
“It’s unconscionable that a licensed attorney would corruptly assist a client with evidence tampering in order to evade income taxes,” stated IRS-CI Special Agent-in-Charge Larsen. “When IRS special agents begin their career, they take an oath to uphold the constitution, a similar oath Mr. Servider swore to when he became a practicing attorney.”
“John Servider violated the law and his oath as an officer of the court when he obstructed a grand jury investigation by deliberately providing the grand jury with false documents,” said DOL OIG Special Agent-in-Charge Mikulka. “Today’s sentencing affirms the Office of Inspector General’s commitment to work with our law enforcement partners to hold those who obstruct criminal investigations accountable for their actions.”
“Servider’s conduct was egregious on many ethical and legal levels. His criminal conduct in altering documents to a federal grand jury subpoena was an effort to obstruct the Government’s investigation, and was also an effort to mislead the federal Grand Jury,” stated PA-OIG Inspector General Nestor. “These actions are particularly serious given that Servider had been an attorney. The PA-OIG thanks its law enforcement partners for the cooperative effort exhibited throughout this investigation and prosecution.”
In March 2013, Servider learned that federal law enforcement agencies were investigating Vertuccio for receiving unreported income – including Rolex watches and other expensive jewelry – from Crimson Corporation, a construction company that he controlled as a silent partner. After a grand jury subpoena was served on a jewelry store, Servider and Vertuccio agreed to alter the store’s receipts and invoices by removing any mention of Vertuccio. As part of the scheme, Servider also instructed Crimson Corporation principals to destroy other evidence relevant to the grand jury investigation.
Vertuccio pleaded guilty in April 2017 to filing a false tax return and conspiracy to obstruct justice. He was sentenced to 24 months’ imprisonment in October 2018.
The government’s case is being handled by the Office’s Organized Crime & Gangs Section. Assistant United States Attorneys Tanya Hajjar and Jonathan P. Lax are in charge of the prosecution.
The Defendant:
JOHN SERVIDER
Age: 56
Patterson, New YorkE.D.N.Y. Docket No. 15-CR-174 (ENV)
Justice Department Announces Transnational Elder Fraud Strike ForceRead the Press Release
WASHINGTON – Attorney General William P. Barr today announced the establishment of the Transnational Elder Fraud Strike Force, a joint law enforcement effort that will focus on investigating and prosecuting individuals and entities associated with foreign-based fraud schemes that disproportionately affect American seniors. These include telemarketing, mass-mailing, and tech-support fraud schemes.
The Strike Force will be comprised of prosecutors and data analysts from the Consumer Protection Branch, prosecutors with six U.S. Attorneys’ Offices (Central District of California, Middle and Southern Districts of Florida, Northern District of Georgia, Eastern District of New York, and Southern District of Texas), FBI special agents, Postal Inspectors, and numerous other law enforcement personnel. The Strike Force will also collaborate with the Federal Trade Commission and industry partners, who have pledged to engage with the Department to help end the scourge of elder fraud. It will further benefit from the help of the Elder Justice Coordinators now assigned in every U.S. Attorney’s Office.
“Fraud against the elderly is on the rise,” said Attorney General Barr. “One of the most significant and pernicious causes for this increase is foreign-based fraud schemes. The new Transnational Elder Fraud Strike Force will bring together the expertise and resources of our prosecutors, federal and international law enforcement partners, and other government agencies to better target, investigate, and prosecute criminals abroad who prey on our elderly at home. The Department of Justice is committed to ending the victimization of elders across the country.”
“Schemes that target elderly and vulnerable victims are unconscionable,” stated Richard P. Donoghue, United States Attorney for the Eastern District of New York. “The Transnational Elder Fraud Strike Force will use every resource available to ensure that, no matter where they are, perpetrators of elder fraud will be stopped and prosecuted.”
“It doesn’t matter where these criminals live. We’re committed to keeping our elderly citizens safe, whether they’re being targeted door-to-door, over the phone, or online, from thousands of miles away,” said Director Christopher Wray of the FBI. “Our new Transnational Elder Fraud Strike Force will give us additional resources and tools to identify and stop those who are targeting our senior communities from overseas. If you think you may be a victim of elder fraud, or you know someone who is, please let us know. We want to help.”
“Protecting older Americans and educating them and their caregivers about foreign lotteries and sweepstakes has been a long-time priority of the Postal Inspection Service,” said Chief Postal Inspector Gary Barksdale. “Our consumer awareness programs, coupled with our investigative efforts, have prevented countless older Americans from fraud and financial exploitation. But there’s so much more than can be done. By joining our partner agencies in this Strike Force, we become more effective at identifying and stopping those who prey on our vulnerable citizens.”
Using analytical tools and sophisticated investigative approaches, the Strike Force will seek to identify those responsible for foreign fraud schemes affecting American seniors, as well as those individuals and entities facilitating such schemes. The Strike Force will coordinate closely with foreign law enforcement, and will use all available criminal and civil tools to stop victims from losing money and to hold wrongdoers responsible.
The Attorney General announced creation of the Strike Force as part of a week of events recognizing World Elder Abuse Awareness Day on June 15, which is dedicated to raising awareness about the millions of older adults who experience elder abuse, neglect, and financial exploitation.
The establishment of the Transnational Elder Fraud Strike Force builds on the Trump Administration’s commitment to combating elder fraud. That commitment was reflected in the Department’s historic 2018 and 2019 Elder Fraud Sweeps—which collectively brought criminal and civil actions against more than 500 defendants responsible for defrauding more than $1.5 billion from at least three million victims —as well as the 2018 Rural and Tribal Elder Justice Summit.
More information about the Department’s efforts to help American seniors is available at its Elder Justice Initiative webpage. For more information about the Consumer Protection Branch and its enforcement efforts, visit its website at https://www.justice.gov/civil/consumer-protection-branch. Elder fraud complaints may be filed with the FTC at www.ftccomplaintassistant.gov or at 877-FTC-HELP. The Department of Justice provides a variety of resources relating to elder fraud victimization through its Office of Victims of Crime, which can be reached at www.ovc.gov.
Former Musical Director at St. Agnes Cathedral on Long Island Pleads Guilty to Receiving Child PornographyRead the Press Release
Michael Wustrow, the former musical director at St. Agnes Cathedral in Rockville Centre, New York, pleaded guilty today in federal court in Central Islip to receipt of child pornography. The proceeding was held before United States Magistrate Judge Gary R. Brown. When sentenced, Wustrow faces up to 20 years’ imprisonment.
Richard P. Donoghue, 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 guilty plea.
“The Eastern District will continue to bring to justice those like Wustrow who contribute to the victimization of innocent children,” stated United States Attorney Richard P. Donoghue.
On September 11, 2017, Wustrow was found to be in possession of multiple images of children engaged in sexually explicit conduct on his cell phone. Among these images was a picture of a toddler being abused by an adult male, which Wustrow received from the messaging app, Kik. Through the messaging app, Wustrow also claimed to have had sexual contact with with an underage teenage boy and stated that he wanted to sexually abuse a 12- or 13-year-old boy. Wustrow has been incarcerated since his arrest on February 20, 2019.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorney Oren Gleich is in charge of the prosecution.
The Defendant:
MICHAEL WUSTROW
Age: 56
Freeport, New YorkE.D.N.Y. Docket No. 19-CR-87 (SJF)
MS-13 Gang Member Sentenced to 55 Years’ Imprisonment for Role in Murders of Four Young Men in a Long Island ParkRead the Press Release
Earlier today, at the federal courthouse in Central Islip, Josue Portillo, a member of the Leeward Locos Salvatruchas clique of La Mara Salvatrucha, also known as the MS-13, was sentenced by United States Circuit Judge Joseph F. Bianco to 55 years’ imprisonment, following his guilty plea to racketeering charges for his participation in the April 11, 2017 murders of Justin Llivicura, Michael Lopez, Jorge Tigre and Jefferson Villalobos. Upon completion of his sentence, Portillo, an illegal alien from El Salvador, faces deportation from the United States.
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), Geraldine Hart, Commissioner, Suffolk County Police Department (SCPD), and Patrick J. Ryder, Commissioner, Nassau County Police Department (NCPD), announced the sentence.
“Portillo and his co-defendants slaughtered four young men on behalf of the MS-13,” stated United States Attorney Donoghue. “Nothing can bring back the young lives lost, and no sentence imposed by a court can truly bring justice in this situation, but the Eastern District and our partners in the FBI’s Long Island Gang Task Force will continue to work relentlessly to eliminate the scourge of MS-13 violence.”
“MS-13 and the actions of the gang members in this case defy comprehension. These are teenagers who think human life is some sort of game, viciously murdering other teenagers because they were disrespected,” stated FBI Assistant Director-in-Charge Sweeney. “The FBI Long Island Gang Task Force is working closely with our law enforcement partners and the community to prevent more attacks and murders from happening. We encourage anyone who may know something about MS-13 members to call us so we can stop the violence before it takes place.”
“The murders of four people during a single incident shows how vicious MS-13 members are,” said SCPD Commissioner Hart. “The department will continue its partnership with the Long Island Gang Task Force to ensure gang violence ceases as we remain steadfast in our commitment to dismantle this transnational gang.”
“The arrest and sentencing of defendant Josue Portillo is a clear example of numerous dedicated law enforcement agencies and their investigators working cohesively to bring the individuals responsible for these vicious and brutal murders to justice,” stated NCPD Commissioner Ryder. “All law enforcement must stand together with a zero tolerance approach to eliminate the threat of illegal gangs, their violence against communities and the people who reside in them.”
On the evening of April 11, 2017, two female associates of the MS-13 lured five young men, including the four victims, to a community park in Central Islip at the direction of Portillo and other MS-13 members. The men were believed to be members of a rival gang who had offended the MS-13. Portillo and numerous other MS-13 members and associates met in the park where they distributed weapons and discussed the plan to kill the victims. When the female MS-13 associates led the men to a wooded area, Portillo and the other MS-13 members and associates killed Llivicura, Lopez, Tigre and Villalobos, using machetes, knives, wooden clubs and an ax. The fifth intended victim escaped. The victims’ bodies were discovered the following evening.
Portillo was under 16 years of age at the time of the murders, and was initially charged by a juvenile information. Thereafter, the government filed a motion to transfer him to adult status for prosecution. Following an evidentiary hearing, the Court granted the government’s transfer motion, and ordered that Portillo be prosecuted as an adult. In August 2018, Portillo waived indictment and pleaded guilty.
Today’s sentence is the latest result of 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 international 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 this district. 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 this 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 the FBI’s Long Island Gang Task Force, comprising agents and officers of the FBI, SCPD, NCPD, Nassau County Sheriff’s Department, Suffolk County Probation, Suffolk County Sheriff’s Office, Rockville Centre Police Department, New York State Police, and Bureau of Alcohol, Tobacco, Firearms and Explosives.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorneys John J. Durham, Paul G. Scotti, Justina L. Geraci and Michael T. Keilty are in charge of the prosecution.
The Defendant:
JOSUE PORTILLO (also known as “Sparky” and “Curioso”)
Age: 18
Central Islip, New YorkE.D.N.Y. Docket No. 17-CR-366 (S-1)(JFB)
Long Island Attorney Pleads Guilty to Conspiracy to Obstruct Federal ProceedingRead the Press Release
Earlier today, in federal court in Brooklyn, Mark Weissman, an attorney licensed to practice in the State of New York since 1989, pleaded guilty to conspiring to obstruct an official proceeding. Specifically, Weissman engaged in a scheme to impede the enforcement of another individual’s obligation to pay millions of dollars in court-ordered restitution to victims in an unrelated securities fraud case. When sentenced, Weissman faces up to 20 years in prison and a fine in an amount to be determined by the court. The guilty plea was entered before United States District Court Chief Judge Dora L. Irizarry.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, announced the guilty plea.
“With today’s guilty plea, Weissman has been held responsible for attempting to impede the execution of a restitution judgment that was to be paid to victims of a massive fraud,” stated United States Attorney Donoghue. “This Office will vigorously prosecute corrupt attorneys who assist in violations of the law.” Mr. Donoghue thanked the Federal Bureau of Investigation and Internal Revenue Service-Criminal Investigation for their assistance with the investigation.
According to Court filings, in 2011 and 2012, two individuals (Individual A and Individual B) pleaded guilty in federal court in Brooklyn to securities fraud, conspiracy to commit securities fraud, and money laundering conspiracy. At their sentencing proceedings in 2014, they were ordered to pay approximately $12.7 million in restitution to the victims of their securities fraud scheme. Thereafter, in February 2017, Weissman advised Individual A that incriminating information about him would be provided to law enforcement, unless he paid $6 million to Individual B. At his guilty plea proceeding today, Weissman admitted that he believed this payment would impede the enforcement of the restitution judgment against Individual B.
The government’s case is being handled by the Office’s Public Integrity Section. Assistant United States Attorney Nathan Reilly is in charge of the prosecution.
The Defendant:
MARK WEISSMAN (also known as “Meyer Weissman”)
Age: 55
Lawrence, New YorkE.D.N.Y. Docket No. 18-CR-524 (DLI)
Operator of Long Island Business Pleads Guilty to Defrauding Investors in Distribution of Wine Product Featured on “Shark Tank” TV ShowRead the Press Release
Earlier today, in federal court in Central Islip, Joseph Falcone, who formerly operated a wine and liquor distribution business known as 3G’S VINO LLC (3G’S), pleaded guilty to wire fraud for his scheme to solicit investors. When sentenced, Falcone faces up to 20 years in prison, as well as restitution, criminal forfeiture and a fine. The guilty plea was entered before United States Magistrate Judge Steven I. Locke.
Richard P. Donoghue, 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 guilty plea.
“Falcone lured investors into believing that they were funding an up-and-coming business and then used their money to purchase his Florida home and to finance his online securities trading,” stated United States Attorney Donoghue. “This Office will continue to protect the investing public by prosecuting to the fullest extent of the law those who use deceptive practices to enrich themselves.”
“Mr. Falcone didn’t use the money his investors gave him on the actual investment he sold to them,” stated FBI Assistant Director-in-Charge Sweeney. “Investing in other people’s ideas can be a risky venture because most backers can’t see the details that would show the fraud. That’s where the FBI and our law enforcement partners come in. We can see the numbers that don’t add up and we can hold the fraudsters accountable.”
According to court filings and facts presented at the guilty plea proceeding, in December 2012, Falcone established 3G’S, based in Bethpage and Farmingdale, New York, which among other products, distributed a single-serving, wine in a sealed glass that was featured on the television program “Shark Tank.” Between September 2014 and November 2015, Falcone solicited investments and promised potential investors that he would use their money to fund 3G’S, such as by purchasing the single-serving wine product. Relying on those promises, investors wired funds from bank accounts in New York to bank accounts in Florida controlled by Falcone. Rather than invest the money as promised, Falcone used about $527,064 of the investors’ money to purchase a residence in Florida and to support his online securities trading.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorneys Bradley T. King and Madeline M. O’Connor are in charge of the prosecution.
The Defendant:
JOSEPH FALCONE
Age: 59
Melbourne, FloridaE.D.N.Y. Docket No. 19-CR-257 (SJF)
Queens Man Who Wanted to Attack Times Square Arrested for Purchasing Firearms with Obliterated Serial NumbersRead the Press Release
A criminal complaint was filed today in federal court in Brooklyn charging Ashiqul Alam with knowingly receiving two firearms with obliterated serial numbers in Brooklyn, New York. Alam was arrested yesterday and is scheduled to be presented this afternoon before United States Magistrate Judge Cheryl L. Pollak.
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 James P. O’Neill, Commissioner, New York City Police Department (NYPD), announced the arrest.
“As alleged, Ashiqul Alam bought illegal weapons as part of his plan to kill law enforcement officers and civilians in a terrorist attack on Times Square,” stated United States Attorney Donoghue. “What he did not know was that he was buying weapons from government agents, who were monitoring his plans and intervening to prevent those plans from escalating into deadly violence. This Office, together with our law enforcement partners, will continue to exercise extreme vigilance to prevent terrorists from attacking our city and our country.”
“There is more to this case than just talk and the desire to carry out a terrorist attack. Individuals who believe in the distorted and deadly propaganda of terrorist organizations and work toward acting on those deadly impulses are incredibly dangerous and unpredictable,” said FBI Assistant Director-in-Charge Sweeney. “Mr. Alam allegedly then took the steps to follow through on his deadly impulse, purchasing weapons to kill New Yorkers, target an elected official and attack police officers. The FBI New York Joint Terrorism Task Force and the NYPD Intelligence Bureau will simply not allow individuals to execute their plots, and our team will use every legal tool available to us to protect our community and remain ahead of the threat individuals like Alam pose to our communities.”
“Mr. Alam discussed guns, suicide vests, hand grenades, and surveilled crowded New York targets such as Times Square”, said Police Commissioner O’Neill. “Our job is to prevent these terrorist attacks whenever we can before they are carried out. This case is another example of the tightly-knit teamwork of the JTTF and the NYPD’s Intelligence Bureau. Mr. Alam is charged with illegally purchasing untraceable firearms from undercover officers. That was a clear indicator of his intent to move his plot forward.”
As alleged in the complaint, between August 2018 and the present, Alam repeatedly expressed a desire to purchase firearms and explosives for use in a terrorist attack. Alam identified two targets, either Times Square or Washington, D.C., in order to kill a senior government official. In January 2019, Alam conducted several “recon” trips to Times Square, using his cellular telephone to make a video recording of the area as he searched for potential targets. Alam considered multiple ways to conduct such an attack, including by using a “suicide vest” and by obtaining AR-15 assault rifles to kill law enforcement officers.
Alam conducted research about firearms on the internet and discussed purchasing firearms with an undercover law enforcement officer (“UC-1”). In March 2019, Alam told UC-1 that he would be interested in buying a Glock 9mm pistol. UC-1 introduced Alam to an “associate,” who offered to help Alam procure two illegal Glock G19 pistols. In April 2019, Alam underwent Lasik eye surgery, a procedure whose value he explained: “Let’s say we are in an attack, right, say that my glasses fall off. What if I accidentally shoot you? You know what I mean. Imagine what the news channel would call me the ‘Looney Tunes Terrorist’ or the ‘Blind Terrorist.’”
In May 2019, Alam was told that the firearms he wanted to buy would have obliterated serial numbers, and he replied “Oh, that’s good man.” Alam then had repeated conversations and meetings with individuals he believed were going to sell him firearms, including one meeting in which he was shown hand grenades for purchase. Alam subsequently discussed buying grenades because a grenade could “take out at least eight people.” Alam also asked to order ammunition as well as weapons because, he said, “What is the point of getting a gun without ammo?”
On June 6, 2019, Alam met the individual he believed was going to sell him firearms and was shown two Glock 19 semiautomatic pistols with obliterated serial numbers. The defendant provided $400 towards the purchase of the two pistols and asked whether he could also buy a silencer. The defendant was arrested shortly thereafter.
The charge in the complaint is an allegation, and the defendant is presumed innocent unless and until proven guilty.
The government’s case is being handled by the Office’s National Security and Cybercrime Section. Assistant United States Attorneys David K. Kessler, Michael Keilty and Jonathan Algor are in charge of the prosecution, with assistance from Trial Attorney Jacqueline L. Barkett of the Department of Justice’s Counterterrorism Section.
The Defendant:
Ashiqul Alam
Age: 22
Queens, New YorkE.D.N.Y. Docket No. 19-M-0531
Long Island Man Who Worked at Melville-Based Boiler Room Sentenced to Two Years’ Imprisonment for His Role in $147 Million Stock Manipulation SchemeRead the Press Release
Earlier today, in federal court in Central Islip, Emin L. Cohen, a cold-caller and account executive at My Street Research and its predecessors located in Melville, New York (the “boiler room”), was sentenced by United States District Judge Joanna Seybert to two years in prison and ordered to pay $86,168 in forfeiture. The amount of restitution will be determined by the court at a later date. Cohen pleaded guilty in June 2018 to conspiracy to commit securities fraud in connection with a multi-defendant, $147 million scheme to defraud investors in publicly traded companies.
Richard P. Donoghue, 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 sentence.
“Cohen played key roles in the boiler room, luring the victims, many of them elderly and vulnerable, into the fraudulent scheme with lies and subjecting them to high-pressure tactics to seal the deals,” stated United States Attorney Donoghue. “With today’s sentence, Cohen has been held accountable for taking advantage of victims of his telemarketing con job, designed solely to enrich himself and his co-conspirators.”
Between January 2014 and July 2017, Cohen and 15 co-defendants participated in a “pump and dump” stock fraud scheme that defrauded investors in publicly traded companies (the “manipulated companies”). As part of the scheme, the defendants artificially inflated the price and trading volume of stock of the manipulated companies, and made material misrepresentations and omissions in their communications with the victim investors, concerning the advisability of purchasing the stock and its potential profitability. The defendants, who controlled much of the stock of the manipulated companies, profited handsomely, while the victim investors lost millions of dollars when the price stock plummeted. Taped to the wall of the boiler room was a sign that read, “WE’LL POUND THE PHONE AND WITH A LITTLE BIT OF LUCK, WE’LL MAKE A TON OF MONEY AND WON’T GIVE A F---.” Ten of Cohen’s co-defendants have pleaded guilty and are awaiting sentencing. Five other co-defendants are scheduled for trial.
The government’s case is being prosecuted by Assistant United States Attorneys Whitman G.S. Knapp, Alicyn L. Cooley and Patrick T. Hein. Assistant United States Attorney Tanisha R. Payne of the Office’s Civil Division is handling the forfeiture aspect of the case.
The Defendant:
EMIN L. COHEN (also known as “Ian Grant”)
Age: 35
Coram, New YorkE.D.N.Y. Docket No. 17-CR-372-10 (JS)
Long Island Man Sentenced to More Than 10 Years’ Imprisonment for Stealing More Than $1 Million from Dead Woman’s Estate and for Possession of Child PornographyRead the Press Release
John Derounian was sentenced today in federal court in Central Islip by United States District Judge Joan M. Azrack to 51 months’ imprisonment for mail fraud and 70 months’ imprisonment for possession of child pornography, to run consecutively, for a total sentence of 121 months’ imprisonment. The Court also ordered him to pay $1,403,209.17 in restitution for his theft of more than $1.2 million from the estate of a deceased victim (Jane Doe), and a $10,000 fine. Derounian pleaded guilty to the charges in June 2018.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, and Philip R. Bartlett, Inspector-in-Charge, United States Postal Inspection Service, New York Division (USPIS), announced the sentence.
“Derounian’s crimes were unconscionable and today’s sentence is well deserved,” stated United States Attorney Donoghue.
“When it comes to evil deeds, there is nothing more despicable than preying on children and robbing the dead. Today’s sentence is a lesson in karma and justice; when you break the law, your crimes will eventually be exposed,” stated USPIS Inspector-in-Charge Bartlett.
On November 12, 2015, Derounian claimed to have found the body of his tenant, Jane Doe, inside her Sea Cliff residence. He then telephoned and emailed employees at Morgan Stanley, in an attempt to obtain over $200,000 from Doe’s account. As a further part of the scheme, Derounian forged a will naming himself executor and sole beneficiary of Doe’s estate, had the body of Doe cremated, sold Doe’s real property for over $1 million, and transferred the proceeds into bank accounts he controlled.
The government’s case is being handled by the Office’s Long Island Criminal and Civil Divisions. Assistant United States Attorney Mark E. Misorek is in charge of the prosecution, and Assistant United States Attorney Robert W. Schumacher of the Office’s Civil Division is handling matters relating to forfeiture.
The Defendant:
JOHN DEROUNIAN
Age: 51
Sea Cliff, New YorkE.D.N.Y. Docket No. 16-412 (S-1) (JMA)
United States Files Complaint Against 21 Corporations for Environmental Violations at 13 N.Y. and N.J. Gas StationsRead the Press Release
CENTRAL ISLIP, N.Y. – Richard P. Donoghue, United States Attorney for the Eastern District of New York, and Peter D. Lopez, Regional Administrator of the U.S. Environmental Protection Agency (“EPA”), announced today that the United States has filed a civil lawsuit against Genesis Petroleum, Inc., and 20 of its associated companies, (collectively, “Defendants”), for violating the Resource Conservation and Recovery Act (“RCRA”) at 13 separate gas stations within the Eastern District of New York and the District of New Jersey. The violations alleged in the complaint involve Defendants’ improper management of 38 underground storage tanks at 13 of Defendants’ gas stations. These tanks typically contain gasoline and diesel fuel and can cause serious environmental damage if allowed to leak.
The lawsuit seeks injunctive relief to assure Defendants’ future compliance with RCRA and an order imposing civil penalties for Defendants’ violations of up to $16,000 per tank for each day of violation.
As alleged in the complaint filed today in federal court in Central Islip, New York, Defendants repeatedly violated RCRA and its related regulations at various times from 2012 to 2016. These violations included failing to install spill and overfill prevention equipment, failing to perform release (i.e., leak or spill) detection and failing to maintain and provide records of release detection monitoring. In some instances, Defendants failed to secure underground storage tanks that were temporarily closed, and failed to investigate or report suspected releases. In another instance, EPA inspectors observed a visibly corroded storage tank at one of Defendants’ stations. At times, Defendants also failed to cooperate with the EPA by refusing to permit station inspections and by failing to respond to the EPA’s requests for information about the underground storage tanks that they owned and/or operated.
“The Defendants’ repeated violations of the Resource Conservation and Recovery Act put groundwater at risk of contamination, potentially endangering the health and safety of residents of Nassau and Suffolk Counties in New York as well as residents of New Jersey,” stated United States Attorney Donoghue. “We are committed to enforcing the laws protecting our residents from hazardous wastes and the dangers they pose.”
“Failure to monitor and maintain tanks to prevent leaks can pose a serious safety risk, as the leaking underground tanks can release toxic components that can seep into the soil and the groundwater,” said EPA Regional Administrator Peter D. Lopez. “These violations are all too common, and EPA is working to ensure that we hold the companies responsible for properly managing their tanks to reduce these risks where these gas stations are located.”
While the violations alleged in the complaint do not pose an immediate threat to the drinking water of the areas’ residents, compliance with the RCRA’s leak prevention regulations for underground storage tanks is vital to ensure the integrity of tanks and prevent the release of petroleum product to soil and groundwater. Petroleum products such as gasoline contain chemical compounds that pose substantial threats to human health. When operated conscientiously and monitored closely, underground storage tanks are a safe and effective means to store gasoline. But when tanks are not subjected to basic operational safeguards, they can endanger the public and the environment, for example by leaking petroleum into the water supply, discharging toxic vapors into the air, or even triggering fires or explosions. EPA’s regulations under RCRA are designed to protect the public by requiring underground storage tank operators to reduce the likelihood of leaks and monitor for leaks so they can promptly be addressed.
The matter is being handled by Assistant U.S. Attorney Jolie Apicella of the United States Attorney’s Office for the Eastern District of New York, working with Lee Spielmann, Assistant Regional Counsel, EPA Region 2, and Paul Sacker, Senior Enforcement Officer, EPA Region 2.
The Defendants:
Genesis Petroleum, Inc.
Technic Management, Inc.
Gulden Inc.
2664 RT 112 Realty Corp.
607 Station Road Realty Inc.
1000 Motor Parkway Central Islip LLC
616 Broadway LLC
Freeport Realty LLC
199 E. Sunrise Highway Realty Corp.
465 Nassau Road Realty Corp.
Camlica, Inc.
Kucukbey Corp.
North Country Road Realty LLC
Elizabeth NJPO LLC
Elizabeth NJPG LLC
Perth Amboy NJPO LLC
Perth Amboy NJPG LLC
Newark NJPO LLC
Newark NJPG LLC
North Bergen NJPO LLC
North Bergen NJPG LLC
Gas Station Locations:
- 2664 Route 112, Medford, New York
- 607 Station Road, Bellport, New York
- 87 North Country Road, Miller Place, New York
- 616 Route 110, Amityville, New York
- 6077 Jericho Turnpike, Commack, New York
- 199 E. Sunrise Highway, Freeport, New York
- 131 West Merrick, Freeport, New York
- 465 Nassau Road, Roosevelt, New York
- 261 East Merrick Road, Freeport, New York
- 507 Bayway Avenue, Elizabeth, New Jersey
- 163 Fayette Street, Perth Amboy, New Jersey
- 66-80 Bloomfield Avenue, Newark, New Jersey
- 8012 Tonnelle Avenue, North Bergen, New Jersey
Queens Man Pleads Guilty to Assaulting a Federal Correctional Officer and Possessing Contraband at a Federal Jail in BrooklynRead the Press Release
Ali Saleh pleaded guilty today at the federal courthouse in Brooklyn to assaulting a federal correctional officer and possessing contraband at the Metropolitan Detention Center (MDC) in Brooklyn, New York. The proceeding took place before United States District Judge William F. Kuntz, II, on the day a jury was scheduled to be selected for Saleh’s trial. When sentenced, Saleh faces up to 25 years’ imprisonment on the assault and prison contraband charges.
Richard P. Donoghue, 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 guilty plea.
“Saleh viciously attacked a correctional officer performing routine duties at the MDC, causing the officer serious injury,” stated United States Attorney Donoghue. “Correctional officers place themselves on the front line every day and all inmates should know that we will relentlessly prosecute those who threaten or assault them.”
On July 13, 2018, Saleh was an inmate at the MDC for charges related to attempting to provide material support to the Islamic State of Iraq and al-Sham (ISIS). At approximately 12:35 p.m., while a senior correctional officer was retrieving trash through an access slot of Saleh’s cell, Saleh reached through the slot and slashed the officer with an improvised knife, seriously lacerating the officer’s right forearm. Saleh smiled at the officer and said, “I hope you die.” The correctional officer subsequently underwent surgery for his wound.
Saleh’s potential sentence of up to 25 years on the assault and possession of contraband charges is in addition to the sentence he faces for his conviction, pursuant to a guilty plea on July 24, 2018, to attempting to provide material support to ISIS.The government’s case is being prosecuted by Assistant United States Attorneys Phil Selden and Douglas M. Pravda.
The Defendant:
ALI SALEH
Age: 26
Queens, New YorkE.D.N.Y. Docket No. 18-CR-468 (WFK)
Long Island Man Sentenced to 18 Months’ Imprisonment for Threatening to Assault and Murder Two United States SenatorsRead the Press Release
Earlier today, at the federal courthouse in Central Islip, Ronald DeRisi was sentenced by United States Circuit Judge Joseph F. Bianco to 18 months’ imprisonment for threatening to assault and kill two sitting United States Senators in retaliation for their support of the nomination and confirmation of Justice Brett Kavanaugh to the U.S. Supreme Court. As part of his sentence, DeRisi was ordered to forfeit two firearms to the United States.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, and Acting Chief Steven Sund, United States Capitol Police, announced the sentence.
“Our political process allows for vigorous debate, but not destruction. Threatening to harm or kill elected officials because one disagrees with their public positions goes far beyond the scope of the First Amendment and will not be tolerated,” stated United States Attorney Donoghue. “We will not allow individuals to influence political decision-making through criminal threats.” Mr. Donoghue thanked the Federal Bureau of Investigation and the Suffolk County Police Department for their assistance in the case.
“I also want to thank our USCP investigators, and all of our partners in successfully investigating and prosecuting this case,” said Acting Capitol Police Chief Sund.
In September and October of 2018, DeRisi telephoned and left approximately 12 anonymous, threatening voice-messages at the offices of two United States Senators, both of whom were publicly supporting the nomination and confirmation of Justice Kavanaugh to the U.S. Supreme Court. DeRisi’s threats, which were made both before and after Justice Kavanaugh’s confirmation, included threatening to shoot one of the Senators in the head with a 9mm firearm. When DeRisi was arrested on October 19, 2018, members of law enforcement recovered live 9mm ammunition during the execution of a search warrant at his residence.The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorney Justina L. Geraci is in charge of the prosecution.
The Defendant:
Ronald DeRisi
Age: 75
Smithtown, New YorkE.D.N.Y. Docket No. 19-CR-090 (JFB)
Queens Storeowner Indicted for Setting Fire to Rival Supermarket in BrooklynRead the Press Release
Earlier today, a federal grand jury in Brooklyn returned an indictment charging Mamunar Khan with the February 3, 2019 arson of the Premium Supermarket in East New York. Khan was previously arrested on a complaint on May 6, 2019, and will be arraigned at a later date. If convicted, Khan faces a mandatory minimum sentence of five years’ imprisonment, and a maximum of 20 years’ imprisonment.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, and John B. DeVito, Special Agent-in-Charge, Bureau of Alcohol, Tobacco, Firearms, and Explosives, James P. O’Neill, Commissioner, New York City Police Department (NYPD), and Daniel A. Nigro, Commissioner, New York City Fire Department (FDNY), announced the charge.
“As alleged in the indictment, Khan set fire to a supermarket while it was open for business, demonstrating total disregard for the safety of employees, customers and the firefighters who responded to the blaze,” stated U.S. Attorney Donoghue. “Attempting to burn down your competition is an extremely serious and violent crime and we and our law enforcement partners will ensure that such crimes are punished.”
“The alleged violent acts of the defendant against a fellow business owner could have resulted in substantial loss of property and cost the lives of innocent people to include first responders,” stated ATF Special Agent-in-Charge DeVito. “The ATF/NYPD/FDNY Strategic Explosive and Arson Response Task Force will continually work to prevent violent acts like this from occurring and to swiftly bring the perpetrators of such acts when they do occur, to justice. I would like to thank the United States Attorney’s Office for their work in prosecuting the case.”
“Mamunar Khan put personal profit before public safety and put people’s lives at risk,” said NYPD Commissioner O’Neill. “The NYPD and its law enforcement partners will never tolerate the kind of recklessness and brazen criminality that was committed in this case.”
“The use of fire as a weapon to injure and intimidate is a callous crime, one that senselessly puts the lives of New Yorkers and FDNY members in danger,” stated FDNY Commissioner Nigro. “Thanks to our Fire Marshals, NYPD Detectives, ATF agents, and the US Custom and Border Patrol agents who brought to justice an alleged arsonist who sought to avoid responsibility for this crime.”
Khan is the co-owner of Deshi Bazaar, located in Ozone Park, Queens. On February 3, 2019, video footage recovered from the Premium Supermarket, located at 1196 Liberty Avenue in Brooklyn, showed Khan pushing a cart filled with unknown flammable material down an aisle in the store. Khan, wearing blue latex gloves, used a lighter to ignite the material, and then exited the store. As the fire spread through the store, a second video camera recorded Khan driving away in a Mercedes-Benz SUV. The fire caused substantial damage to Premium Supermarket and the structure of the building.
A witness told law enforcement agents that Khan had previously complained that the low prices at Premium Supermarket hurt business at his own nearby market. Khan was then interviewed by law enforcement agents. The following day, he left the country and traveled to Bangladesh. Khan was arrested three months later upon returning to the United States.
The charge in the indictment is an allegation, and the defendant is presumed innocent unless and until proven guilty.
The government’s case is being handled by the Office’s General Crimes Section. Assistant United States Attorney Andrew D. Grubin is in charge of the prosecution.
The Defendant:
MAMUNAR KHAN (also known as “Mumunar Khan”)
Age: 59
Ozone Park, QueensE.D.N.Y. Docket No. 19-CR-247 (LDH)
Former Chief Deputy Nassau County Executive Pleads Guilty to Obstruction of JusticeRead the Press Release
Richard “Rob” Walker, the former Chief Deputy County Executive of Nassau County, pleaded guilty today in federal court in Central Islip to obstruction of justice in connection with a federal grand jury investigation of a cash payment that Walker received from a contractor while in office. The proceeding was held before United States District Judge Joan M. Azrack. When sentenced, Walker faces up to 20 years’ imprisonment.
Richard P. Donoghue, 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 guilty plea.
“While holding public office, Walker attempted to conceal his corrupt conduct by urging a witness to lie to the grand jury,” stated United States Attorney Donoghue. “Those who swear an oath to serve the public are expected to promote transparency, not obstruct justice. The Eastern District will hold officials accountable when they violate the public trust.” Mr. Donoghue expressed his thanks to Internal Revenue Service Criminal Investigation Division for its help during the investigation.
According to court filings and facts presented at the guilty plea proceeding, in 2014, Walker accepted a $5,000 cash payment from a contractor who was performing work for the county. In 2017, after learning that the United States Attorney’s Office had opened a grand jury investigation into potential corruption in Nassau County government, including the circumstances surrounding the $5,000 payment, Walker spoke to the contractor on several occasions, and attempted to persuade him to conceal the existence of the payment from the grand jury, or to provide a false explanation concerning the transaction, for example, as repayment of a loan. Thereafter, Walker met the contractor in a Hicksville park and handed him an envelope containing $5,000 in cash.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorneys Artie McConnell and Catherine M. Mirabile are in charge of the prosecution.
The Defendant:
Richard Walker (also known as “Rob Walker”)
Age: 43
Hicksville, New YorkE.D.N.Y. Docket No. 18-CR-087 (JMA)
Surgical Funding Facilitator and Physician Charged in Alleged Nationwide Scheme to Defraud Women in Connection with Transvaginal Mesh LitigationRead the Press Release
BROOKLYN, N.Y. – Earlier today, at the federal courthouse in Brooklyn, a six-count indictment was unsealed charging Wesley Blake Barber, the owner of Surgical Assistance Inc. and Medical Funding Consultants LLC, and Christopher Walker, a licensed urogynecologist and owner of MedSurg Holdings LLC, for their roles in an alleged scheme to defraud women across the United States in connection with surgeries to remove transvaginal mesh (TVM) implants.
Barber and Walker are each charged with committing wire fraud, violating the Travel Act and related conspiracies. Both defendants were arrested this morning. Barber is expected to appear this afternoon before U.S. Magistrate Judge Rebecca Rutherford of the Northern District of Texas at the federal courthouse in Dallas, and Walker is expected to appear before U.S. Magistrate Judge Gregory Kelly of the Middle District of Florida at the federal courthouse in Orlando.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, Brian A. Benczkowski, 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 indictment.
“As alleged in the indictment, the defendants and their co-conspirators exploited and defrauded women, misrepresenting health risks from TVM implants to pressure the women to undergo procedures to the defendants’ economic advantage,” stated United States Attorney Donoghue. “This Office, the Department of Justice and the FBI will continue to investigate and prosecute medical professionals and others who prey on the vulnerable to line their own pockets.”
“Barber and Walker convinced their victims to subject themselves to surgical procedures based on misrepresentations of fact, as alleged, causing them to incur a financial loss, and likely presenting them with a significant emotional burden,” stated FBI Assistant Director-in-Charge Sweeney. “They used the bodies of women as a conduit for their greedy behavior, and that is simply not allowed. Medical professionals play a vital role in our society, and they're required to adhere to a strict set of standards. As evidenced today, those who don't will be held accountable.”
According to the indictment, Barber and Walker sought to profit in connection with lawsuits filed throughout the United States relating to alleged harm that TVM implants had caused women. The alleged scheme sought to take advantage of settlements in these lawsuits in which women who had their TVM implants surgically removed were entitled to receive larger settlements than women whose inserts remained implanted. As part of the scheme, the conspirators allegedly persuaded women around the country to undergo removal surgeries by fraudulently misrepresenting both the health risks associated with the TVM implants and the need to travel long distances to use pre-selected doctors for the surgeries, including Walker, rather than their local doctors. Barber’s companies allegedly coordinated the removal surgeries and then purchased and resold for profit the medical debts incurred by the women. In addition, Walker and others paid kickbacks and bribes to Barber in exchange for the referral of these women for their surgeries.
The charges in the indictment are allegations, and the defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
If convicted of all the charges, Barber and Walker each face up to 90 years’ imprisonment.
The investigation was conducted by the FBI. Assistant U.S. Attorney Elizabeth Geddes of the Eastern District of New York and Trial Attorney Andrew Estes of the Criminal Division’s Fraud Section are prosecuting the case.
The Defendants:
WESLEY BLAKE BARBER
Age: 49
Detroit, MichiganCHRISTOPHER WALKER
Age: 49
Orlando, FloridaE.D.N.Y. Docket No. 19-CR-239 (RJD)
Surgical Funding Facilitator and Physician Charged in Alleged Nationwide Scheme to Defraud Women in Connection with Transvaginal Mesh LitigationRead the Press Release
A surgical funding facilitator and a licensed urogynecologist were charged in a six-count indictment unsealed today for their roles in an alleged scheme to defraud women across the United States in connection with surgeries to remove transvaginal mesh (TVM) implants related to mass tort litigation.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Richard P. Donoghue of the Eastern District of New York and Assistant Director in Charge William F. Sweeney Jr. of the FBI’s New York Field Office made the announcement.
Wesley Blake Barber, 49, of Detroit, Michigan, the owner of Surgical Assistance Inc. and Medical Funding Consultants LLC, and Christopher Walker, M.D., 49, of Orlando, Florida, and owner of MedSurg Holdings LLC, were charged in an indictment filed in the Eastern District of New York with one count of conspiracy to commit wire fraud, three counts of wire fraud, one count of conspiracy to violate the Travel Act and one count of violating the Travel Act. Both defendants were arrested this morning. Barber is expected to appear this afternoon before U.S. Magistrate Judge Rebecca Rutherford of the Northern District of Texas at the federal courthouse in Dallas, and Walker is expected to appear before U.S. Magistrate Judge Gregory Kelly of the Middle District of Florida at the federal courthouse in Orlando. The case has been assigned to U.S. District Judge Raymond J. Dearie of the Eastern District of New York.
According to the indictment, Barber and Walker sought to profit in connection with lawsuits filed around the country relating to alleged harm that TVM implants caused women. The alleged scheme sought to take advantage of settlements in these lawsuits in which women who had their TVM implants surgically removed were entitled to receive larger settlements than women whose inserts remained implanted. As part of the scheme, women around the country were allegedly enticed into agreeing to undergo removal surgeries after scheme participants allegedly fraudulently told the women, among other things, about the risks of the TVM implants and the need to travel long distances and incur significant debt in order to undergo the surgeries. In addition, Walker and others allegedly paid kickbacks and bribes to Barber in exchange for the referral of these women for surgeries.
The charges in the indictment are merely allegations, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The investigation was conducted by the FBI. Trial Attorney Andrew Estes of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Elizabeth Geddes of the Eastern District of New York are prosecuting the case.
The Criminal Division’s Fraud Section leads the Medicare Fraud Strike Force. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 14 strike forces operating in 23 districts, has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than $14 billion.
Brooklyn Man Pleads Guilty to Threatening to Assault and Murder a United States SenatorRead the Press Release
Earlier today, in federal court in Brooklyn, Michael Brogan pleaded guilty to threatening to assault and murder a United States Senator. The proceeding was held before United States Magistrate Judge Robert M. Levy. When sentenced, Brogan faces up to 10 years in prison.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, and Matthew R. Verderosa, Chief, United States Capitol Police, announced the guilty plea.
“Brogan threatened to assault and murder a sitting United States Senator to silence the Senator and interfere with the performance of the Senator’s official duties,” stated United States Attorney Donoghue. “The Department of Justice stands ready to vigorously prosecute those who seek to subvert our constitutional system and intimidate elected officials through threats of violence.”
“I greatly appreciate the hard work of our investigators for addressing these threats so quickly, and that of the U.S. Attorney’s staff for prosecuting this case,” stated Chief Verderosa.
On December 4, 2018, Brogan telephoned and left a threatening voice-message at the Washington, D.C. office of a United States Senator. The threats were made to discourage the Senator from criticizing the President, as well as in retaliation for the Senator’s position regarding reproductive rights. In the voice-message Brogan stated, “you watch your [expletive] cause . . . . I’m going to put a bullet in ya.” Brogan said when he traveled to Washington, “. . . I got your [expletive] mark you stupid [expletive]. You and your constant lambasting of President Trump. Oh, reproductive rights, reproductive rights.” Brogan concluded with, “you watch your [expletive]. If I see you on the streets, I’m gonna [expletive] light you up with [expletive] bullets.”
The government’s case is being prosecuted by Assistant United States Attorney Phil Selden.
The Defendant:
MICHAEL BROGAN
Age: 51
Brooklyn, New YorkE.D.N.Y. Docket No. 19-CR-207 (NGG)
United States Files Complaint against Long Island Company to Stop Distribution of Adulterated Dietary SupplementsRead the Press Release
CENTRAL ISLIP, N.Y. – The United States filed a civil complaint against defendants Confidence USA Inc., of Port Washington, New York, the company’s president Helen Chian, and manager Jim Chao to prevent the distribution of adulterated dietary supplements in violation of federal law, the Department of Justice announced today. The defendants make and distribute more than 50 dietary supplements under brand names that include Confidence USA, American Best, USA Natural and The Herbal Store.
The complaint, filed in U.S. District Court for the Eastern District of New York, seeks a permanent injunction to prevent the defendants from marketing dietary supplements without following current good manufacturing practices (cGMPs). The complaint alleges that multiple inspections by the U.S. Food and Drug Administration (FDA) repeatedly showed that the defendants failed to verify the identity of each dietary ingredient used in the manufacture of their supplements, and also failed to verify that their products met specifications for purity, strength, composition and contamination limits.
Dietary supplements not prepared, packed and held in conformance with cGMP regulations are adulterated in violation of the Federal Food, Drug, and Cosmetic Act. According to the Department of Justice’s complaint, FDA issued a warning letter to Confidence USA in 2011 regarding deficiencies at the company. United States Marshals previously seized certain Confidence USA products in connection with a 2012 complaint alleging that the products were adulterated.
“Millions of Americans take dietary supplements and trust that these products are safe,” stated United States Attorney Richard P. Donoghue of the Eastern District of New York. “This Office is committed to protecting those consumers and holding dietary supplement manufacturers and distributors to current safety standards. Today’s filing demonstrates that we will take action to enforce those standards and keep the public safe.”
“Dietary supplement makers put consumers’ health at risk by distributing products without first verifying that those products actually are what they claim to be,” stated Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “The Department of Justice will continue to work with the FDA to make sure that dietary supplement manufacturers meet the legal standards necessary to ensure the quality of such products.”
“Ensuring product integrity is a priority for the FDA,” stated Melinda Plaisier, Associate Commissioner for Regulatory Affairs at the Food and Drug Administration. “Consumers should be able to expect that the dietary supplements they purchase meet quality standards and contain only what they are supposed to, in the correct amounts. The FDA will continue to take swift action against companies that sell adulterated dietary supplements.”
A complaint is a set of allegations that, if the case were to proceed to trial, the government would need to prove by a preponderance of the evidence.
The case is being handled by Trial Attorney Douglas Ross of the Civil Division’s Consumer Protection Branch, with the assistance of Assistant United States Attorneys Robert Schumacher and John Vagelatos from the U.S. Attorney’s Office for the Eastern District of New York, and Associate Chief Counsel for Enforcement Jennifer Argabright of the FDA’s Office of General Counsel.
For more information about the Consumer Protection Branch and its enforcement efforts, visit its website at https://www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the Eastern District of New York, visit its website at https://www.justice.gov/usao-edny.
E.D.N.Y. Docket No. 19-CV-3073 (JMA)
Queens Attorney Convicted of Scheme to Bribe A Witness in Double Homicide Trial on Long IslandRead the Press Release
John Scarpa, Jr., an attorney admitted to practice law in the State of New York since 1982, was convicted today by a federal jury in Brooklyn of both counts of use of interstate facilities in aid of racketeering and conspiracy to do the same, stemming from his scheme to bribe a witness in a double homicide trial in State Supreme Court in Suffolk County. The verdict followed a four-day trial before United States District Judge Carol Bagley Amon. When sentenced, Scarpa faces up to 10 years’ imprisonment.
Richard P. Donoghue, 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 verdict.
“The jury saw through Scarpa’s corrupt scheme to help his client avoid responsibility for murder by bribing a witness to give false testimony,” stated United States Attorney Donoghue. “With today’s verdict, the defendant will now face prison and disbarment for attempting to undermine the criminal justice system and violating the law he was sworn to uphold as an attorney.” Mr. Donoghue thanked the Queens County District Attorney’s Office for its assistance during the investigation.
The evidence at trial established that in early 2015, Scarpa plotted with co-conspirator Charles Gallman to bribe a convicted murderer to testify in support of Scarpa’s client, Reginald Ross, who was charged with the execution-style killings of two men. Court-authorized intercepted communications, obtained during an investigation conducted by the Queens County District Attorney’s Office, revealed that Scarpa and Gallman planned to bribe Luis Cherry to testify falsely at trial that he alone had committed the second of the two murders, and that Ross was innocent. Gallman promised to help Cherry with the appeal of his own murder conviction, and to spread word in the prison system that Cherry had not informed against Ross. After meeting with Cherry at Downstate Correctional Facility, Gallman reported to Scarpa, “Anything we need, he’s willing.” Scarpa asked, “So this guy is willing to do whatever?” Gallman replied, “Whatever you need, John. Whatever you need…. I got a bunch of stuff I wrote down that he wants.” Scarpa called Cherry as a witness at Ross’s trial, and Cherry testified falsely. Notwithstanding that false testimony, the judge returned guilty verdicts on both murders.
Gallman pleaded guilty in November 2018 to conspiring to violate the Travel Act by bribing a witness to testify falsely, and conspiring to make false statements to the Bureau of Prisons in a separate scheme. He was sentenced on March 7, 2019 to three years’ imprisonment.
The government’s case is being handled by the Office’s Organized Crime and Gangs Section. Assistant United States Attorneys Lindsay K. Gerdes, Andrey Spektor and Keith D. Edelman are in charge of the prosecution.
The Defendant:
JOHN SCARPA, JR.
Age: 66
Hauppauge, New YorkE.D.N.Y. Docket No. 18-CR-123 S1 (CBA)
Long Island Federal Jury Convicts MS-13 Gang Associate of Murder, Racketeering and Assault ChargesRead the Press Release
A federal jury in Central Islip returned a guilty verdict today against Jose Suarez, an associate of the Sailors Locos Salvatruchas Westside (Sailors) clique of La Mara Salvatrucha, also known as the MS-13, a transnational criminal organization. Suarez was convicted of racketeering, murder, assault and related conspiracy, firearms and accessory after the fact charges in connection with the January 30, 2017 murder of Esteban Alvarado-Bonilla and the shooting of a female employee at a deli in Central Islip, and the December 18, 2016 assault of a man outside a restaurant in Brentwood. The verdict followed a three-week trial before United States Circuit Judge Joseph F. Bianco. When sentenced, Suarez faces a mandatory sentence of life in prison.
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), Geraldine Hart, Commissioner, Suffolk County Police Department (SCPD), and Patrick J. Ryder, Commissioner, Nassau County Police Department (NCPD), announced the verdict.
“Suarez has been held responsible for the execution-style murder of a suspected gang rival and violent assaults, ruthless crimes that reflect the danger to our communities posed by MS-13,” stated United States Attorney Donoghue. “By his actions the defendant sought status within the gang, and with today’s verdict, what he has found instead is a mandatory sentence of life in prison. I commend our prosecutors and the FBI Long Island Gang Task Force for their outstanding work bringing the defendant to justice and their commitment to eradicating MS-13.”
“MS-13 attacks, assaults and murders simply to be as violent as they can. The gang members associated with this case and Mr. Suarez didn’t give a second thought to the life they took, the harm they caused or the terror they created in a community,” stated FBI Assistant Director-in-Charge Sweeney. “The partners of the FBI Long Island Gang Task Force are fully committed to collaborating and dedicating all necessary resources as we continue to eradicate violent gang members from our communities.”
“This guilty verdict ensures that a violent MS-13 associate will face life in prison for his heinous crimes dating back to 2016,” stated SCPD Commissioner Hart. “This case highlights the dangers this gang poses and reinforces our need to continue to work with our law enforcement partners to rid our communities of gang violence. I would like to thank the Eastern District of New York and our partners at the FBI Long Island Gang Task Force for their partnership and perseverance in holding gang members and their associates accountable for their crimes.”
“The combined efforts of associated law enforcement agencies and its dedicated investigators bring to justice defendant Jose Suarez, thus ending a wave of terror by way of the murder of one individual and assaults of two others,” stated NCPD Commissioner Ryder. “This conviction removes another MS-13 gang member from the streets of Nassau County and its communities, thus making them a safer place. We will continue our zero tolerance approach to end all illegal gang activity. Congratulations to all for a job well done.”
The evidence at trial established that, on January 30, 2017, a member of the Sailors clique saw Alvarado-Bonilla inside El Campesino Deli in Central Islip. Believing that Alvarado-Bonilla was a rival gang member, the Sailors clique devised a plan to kill him. Suarez drove MS-13 member Mario Aguilar-Lopez and an MS-13 associate to a street near the deli and parked. The MS-13 associate entered the deli and confirmed that Alvarado-Bonilla was there. Aguilar-Lopez then entered the deli, approached Alvarado-Bonilla from behind and shot him multiple times, killing him. One of the bullets traveled through Alvarado-Bonilla’s head and struck, in the chest, a female employee of the deli who was standing directly in front of him. Aguilar-Lopez ran out of the deli and back to the car where Suarez was waiting, and the two then fled the scene. The store employee was taken to a local hospital for treatment and survived.
Aguilar-Lopez pleaded guilty to the murder of Alvarado-Bonilla and wounding of the female deli employee, and is awaiting sentencing.
The government’s evidence at trial also established that on December 18, 2016, Suarez and several other MS-13 members and associates assaulted two men outside the Super Taco restaurant in Brentwood, seriously injuring one of the men. The victims were attacked because one of them had disrespected the MS-13.
Today’s trial conviction is the latest in a series of federal prosecutions by the United States Attorney’s Office for the Eastern District of New York targeting members of the MS-13, a violent international 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 of federal felony charges in the Eastern District of New York. A majority of those MS-13 members have been convicted of 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 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, SCPD, NCPD, Bureau of Alcohol, Tobacco, Firearms and Explosives, Nassau County Sheriff’s Department, Suffolk County Probation, Suffolk County Sheriff’s Office, Rockville Centre Police Department and the New York State Police.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorneys Raymond A. Tierney and Michael T. Keilty are in charge of the prosecution.
The Defendant:
JOSE SUAREZ (also known as “Chompira”)
Age: 24
Central Islip, New YorkE.D.N.Y. Docket No. 16-CR-403 (JFB)
Department of Justice Files Complaint Against New York Company to Stop Distribution of Adulterated Dietary SupplementsRead the Press Release
The United States filed a civil complaint to stop a Long Island company from marketing adulterated dietary supplements, the Department of Justice today announced.
The complaint, filed May 23, seeks a permanent injunction against defendants Confidence USA Inc., of Port Washington, New York, company president Helen Chian, and company manager Jim Chao to prevent the defendants from marketing dietary supplements without following current good manufacturing practices (cGMPs). The complaint alleges that multiple inspections by the U.S. Food and Drug Administration (FDA) repeatedly showed that the defendants failed to verify the identity of each dietary ingredient used in the manufacture of their supplements and also failed to verify that their products met specifications for purity, strength, composition, and contamination limits.
According to the complaint, the defendants make and distribute more than 50 dietary supplements under brand names that include Confidence USA, American Best, USA Natural, and The Herbal Store. The Justice Department filed the complaint in U.S. District Court for the Eastern District of New York at the request of the FDA.
“Dietary supplement makers put consumers’ health at risk by distributing products without first verifying that those products actually are what they claim to be,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “The Department of Justice will continue to work with the FDA to make sure that dietary supplement manufacturers meet the legal standards necessary to ensure the quality of such products.”
“Millions of Americans take dietary supplements and trust that these products are safe,” stated United States Attorney Richard P. Donoghue of the Eastern District of New York. “This Office is committed to protecting those consumers and holding dietary supplement manufacturers and distributors to current safety standards. Today’s filing demonstrates that we will take action to enforce those standards and keep the public safe.”
“Ensuring product integrity is a priority for the FDA,” said, Melinda Plaisier, Associate Commissioner for Regulatory Affairs at the Food and Drug Administration. “Consumers should be able to expect that the dietary supplements they purchase meet quality standards and contain only what they are supposed to, in the correct amounts. The FDA will continue to take swift action against companies that sell adulterated dietary supplements.”
Dietary supplements not prepared, packed, and held in conformance with cGMP regulations are adulterated in violation of the Federal Food, Drug, and Cosmetic Act. According to the Department of Justice’s complaint, FDA issued a warning letter to Confidence USA in 2011 regarding deficiencies at the company. U.S. Marshals previously seized certain Confidence USA products in connection with a 2012 complaint alleging that the products were adulterated.
A complaint is merely a set of allegations that, if the case were to proceed to trial, the government would need to prove by a preponderance of the evidence.
The case is being handled by Trial Attorney Douglas Ross of the Civil Division’s Consumer Protection Branch, with the assistance of the Assistant United States Attorney Robert Schumacher from the U.S. Attorney’s Office for the Eastern District of New York, and Associate Chief Counsel for Enforcement Jennifer Argabright of the FDA’s Office of General Counsel.
For more information about the Consumer Protection Branch and its enforcement efforts, visit its website at https://www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the Eastern District of New York, visit its website at https://www.justice.gov/usao-edny.
Long Island High School Teacher Pleads Guilty to Transportation and Possession of Child PornographyRead the Press Release
Joseph Zanco, a teacher at Massapequa High School, pleaded guilty today at the federal courthouse in Central Islip to transportation and possession of child pornography. The proceeding was held before United States District Judge Joseph F. Bianco. When sentenced, Zanco faces a mandatory minimum of five years’ and a maximum of 20 years’ imprisonment, as well as forfeiture and a fine of up to $250,000.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, and Angel M. Melendez, Special Agent-in-Charge, U.S. Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI), New York, announced the guilty plea.
In April 2018, while a teacher at Massapequa High School, Zanco began uploading hundreds of images of child pornography to the cloud-based Google Drive storage feature of his Google account. In accordance with its policies and federal law, Google flagged these uploads, suspended the defendant’s account, and notified law enforcement authorities. Federal prosecutors and agents then obtained search warrants and recovered from Zanco’s Google account the same child pornography Google had reported, as well as additional images and videos containing child pornography from Zanco’s laptop computer and cell phone.
“Zanco now faces years in prison for victimizing children by possessing and transporting images of minors being sexually abused, at the same time he was employed as a teacher and entrusted with the safety and well-being of students,” stated United States Attorney Donoghue. “The protection of innocent children is a priority for this Office and our law enforcement partners. We will continue to make every effort to ensure that those who contribute to the victimization of children are brought to justice.” Mr. Donoghue extended his grateful appreciation to ICE-HSI’s Child Exploitation Group for its investigative work and assistance.
This prosecution is part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and the Department of Justice Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorney Michael R. Maffei is in charge of the prosecution.
The Defendant:
JOSEPH M. ZANCO
Age: 44
Massapequa, New YorkE.D.N.Y. Docket No. 18-CR-412 (JFB)