Eastern District of New York
Press releases recorded for this federal judicial district.
Second Defendant Pleads Guilty in Multimillion Dollar Prize Promotion Scam Affecting Elderly VictimsRead the Press Release
A second defendant charged with operating a multimillion mass-mailing fraud scheme pleaded guilty on Tuesday, May 14, in federal court on Long Island, the Department of Justice announced.
Shaun Sullivan, 37, of Merrick, New York, pleaded guilty to conspiracy to commit mail fraud for sending prize-promotion mailings that led recipients, many of whom were elderly and vulnerable, to believe that they could claim a large cash prize in exchange for a modest fee. This was false; victims who submitted fees, which in total exceeded $30 million, did not receive large sums of money.
Sullivan worked with others, including Tully Lovisa of Huntington Station, New York, who operated the prize-promotion mailing scheme in violation of court orders that resulted from a lawsuit against him by the Federal Trade Commission. Lovisa pleaded guilty in October 2018.
“The Department of Justice will bring to justice those who exploit elderly consumers in violation of federal law,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “We are actively working with our law enforcement partners at the U.S. Postal Inspection Service to stop and punish schemes that harm consumers."
“Sullivan preyed on consumers, many of them vulnerable and elderly, by sending fraudulent mailings designed to trick them into believing they had won a cash prize; he then lined his own pockets with the fees he extracted from the victims,” stated United States Attorney Donoghue. “Protecting the community from mass mailing fraud schemes remains a priority of this Office and the Department of Justice.”
“Today’s plea is an example of the coordinated efforts of law enforcement to protect the vulnerable and older Americans, who were specifically targeted to receive bogus solicitations to lure the unsuspecting ‘prize winner’ to send money that was subsequently used for Mr. Sullivan and his co-conspirators own enrichment;” said Inspector in Charge Philip R. Bartlett of the U.S. Postal Inspection Service.
Tuesday’s plea took place before United States District Judge Joanna Seybert. When sentenced, Sullivan faces up to 20 years in prison, forfeiture, and a fine of up to $250,000 or twice the gross gain or gross loss from the offense.
The case is being prosecuted by Trial Attorneys Daniel Zytnick and Timothy Finley of the Department of Justice’s Consumer Protection Branch and Assistant U.S. Attorney Charles P. Kelly of the Eastern District of New York. Assistant United States Attorney Tanisha R. Payne is in charge of issues related to forfeiture.
Since President Trump signed the bipartisan Elder Abuse Prevention and Prosecution Act (EAPPA) into law, the Department of Justice has participated in hundreds of enforcement actions in criminal and civil cases that targeted or disproportionately affected seniors. In particular, this past February the Department announced the largest elder fraud enforcement action in American history, charging more than 200 defendants in a nationwide elder fraud sweep. The Department has likewise conducted hundreds of trainings and outreach sessions across the country since the passage of the Act.
For more information about the Consumer Protection Branch, visit its website at http://www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the Eastern District of New York, visit its website at https://www.justice.gov/usao-edny.
Long Island Man Pleads Guilty to Multi-Million Dollar Elder Fraud SchemeRead the Press Release
Earlier today, in federal court in Central Islip, Shaun Sullivan pleaded guilty before United States District Judge Joanna Seybert to conspiracy to commit mail fraud by sending fraudulent prize-promotion mailings that led recipients, many of whom were elderly and vulnerable, to believe that they could claim large cash prizes in exchange for a modest fee. None of the victims who submitted fees, which in total exceeded $30 million, received a substantial cash prize.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, Joseph H. Hunt, Assistant Attorney General for the Justice Department’s Civil Division, and Philip R. Bartlett, Inspector-in-Charge, United States Postal Inspection Service, New York Division (USPIS), announced the guilty plea.
“Sullivan preyed on consumers, many of them vulnerable and elderly, by sending fraudulent mailings designed to trick them into believing they had won a cash prize; he then lined his own pockets with the fees he extracted from the victims,” stated United States Attorney Donoghue. “Protecting the community from mass mailing fraud schemes remains a priority of this Office and the Department of Justice.”
“The Department of Justice will bring to justice those who exploit elderly consumers in violation of federal law,” said Assistant Attorney General Hunt. “We are actively working with our law enforcement partners at the U.S. Postal Inspection Service to stop and punish schemes that harm consumers.”
“Today’s plea is an example of the coordinated efforts of law enforcement to protect the vulnerable and older Americans, who were specifically targeted to receive bogus solicitations to lure the unsuspecting ‘prize winner’ to send money that was subsequently used for Mr. Sullivan and his co-conspirators own enrichment,” said USPIS Inspector-in-Charge Bartlett.
Between December 2010 and July 2016, Sullivan and others sent fraudulent prize-promotion mailings to thousands of victims throughout the United States. The mailings appeared to be personally addressed to thousands of individuals whose names were on consumer lists obtained by Sullivan and his coconspirators. Sullivan and co-defendant Tully Lovisa rented and maintained private mailboxes in the Eastern District of New York to receive return mailings sent by the victims. They created various shell companies for the purported senders of the mailings, and hid their involvement in the business by using straw owners and aliases. Lovisa pleaded guilty to conspiracy to commit mail fraud in October 2018, and is awaiting sentencing.
When sentenced, Sullivan faces up to 20 years in prison, as well as $550,000 in forfeiture, and a fine of up to $250,000 or twice the gross gain or gross loss from the offense. The government’s case is being prosecuted by Assistant United States Attorney Charles P. Kelly and Trial Attorneys Daniel Zytnick and Timothy Finley of the Justice Department’s Consumer Protection Branch. Assistant United States Attorney Tanisha R. Payne is in charge of the forfeiture.
The Defendant:
SHAUN SULLIVAN
Age: 37
Merrick, New YorkE.D.N.Y. Docket No. 18-CR-349 (JS)
Former Executive Director Indicted for Embezzling Hundreds of Thousands of Dollars from Queens-Based Non-ProfitRead the Press Release
Earlier today, in federal court in Brooklyn, a nine-count indictment was unsealed charging Semeo Doe, the former Executive Director of the Action Center for Education and Community Development, Inc. (Action Center) in Far Rockaway, Queens, with embezzling, and conspiring to embezzle, hundreds of thousands of dollars from that charity for his personal use. Doe was also charged with aggravated identity theft, wire fraud and wire fraud conspiracy in connection with misrepresentations he made to the New York City Department of Youth and Community Development. Doe was arrested this morning and is scheduled to be arraigned this afternoon before United States Magistrate Judge Peggy Kuo.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, Margaret Garnett, Commissioner, New York City Department of Investigation (DOI), and William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the charges.
As is alleged in the indictment, between 2010 and May 2019, Doe served as a Director, and as the Executive Director, of Action Center, a not-for-profit organization that provided services to children and young adults, and provided meals to individuals in need. Doe allegedly embezzled hundreds of thousands of dollars of Action Center funds to pay for personal expenses including international vacations, jewelry, luxury cars and cosmetic surgery. As part of the scheme, he also caused Action Center to submit reimbursement requests for costs that were not incurred — including financial compensation for two employees for work allegedly performed after their deaths. Doe concealed his scheme in part by forging the signatures of Action Center employees on checks he had issued in the employees’ names, and then endorsed the checks and deposited them into his personal bank account.
“As alleged, Doe stole money that was supposed to feed the hungry and provide children with after-school services, and used it to finance his lavish lifestyle,” stated United States Attorney Donoghue. “Today’s indictment serves notice that those who steal from charities to line their pockets will pay the price in the end.”
“It’s difficult to imagine a justification for embezzling money slated to provide services for children and adults in need, but Doe was able to excuse this behavior—at least in some part—in exchange for luxurious personal items and international travel,” stated FBI Assistant Director-in-Charge Sweeney. “Corrupting city-funded nonprofits isn’t just disgraceful, it’s also a federal crime.”
“This defendant allegedly diverted funds meant for youth and adult programming in Queens into his own pockets, using hundreds of thousands of public dollars he funneled through a shell corporation to pay for expenses for himself and his family, according to the charges,” stated DOI Commissioner Garnett. “Fraud involving City nonprofits robs New Yorkers of programming that enriches lives and provides opportunity. DOI is proud to work with the U.S. Attorney for the Eastern District of New York and the Federal Bureau of Investigation to investigate these crimes and hold accountable individuals who corrupt City-funded nonprofits for personal gain.”
The charges in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty. If convicted of the embezzlement charge, the defendant faces a maximum sentence of 10 years’ imprisonment. If convicted of conspiracy to embezzle public funds, the defendant faces a maximum sentence of five years’ imprisonment. If convicted of wire fraud or conspiracy to commit bank fraud, the defendant faces a maximum sentence of 20 years. If convicted of aggravated identity theft, the defendant faces a mandatory sentence of two years’ imprisonment.
The government’s case is being handled by the Office’s Public Integrity Section. Assistant United States Attorney Nicholas J. Moscow is in charge of the prosecution.
The Defendant:
SEMEO DOE
Age: 57
Far Rockaway, New YorkE.D.N.Y. Docket No. 19-CR-218 (JBW)
Drug Trafficker Sentenced to 60 Months in Prison for Conspiring to Distribute Heroin, Cocaine and Marijuana Across New York CityRead the Press Release
Earlier today, at the federal courthouse in Brooklyn, Robert Santos, a member of a Bronx-based drug trafficking ring, was sentenced by United States District Judge Frederic Block to 60 months’ imprisonment, to be followed by four years’ supervised release, based on his February 2018 guilty plea to participating in a conspiracy to distribute 100 grams or more of heroin, 500 grams or more of cocaine, and marijuana.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, Ray Donovan, Special Agent-in-Charge, Drug Enforcement Administration (DEA), New York Division, Angel M. Melendez, Special Agent-in-Charge, Homeland Security Investigations, New York (HSI), Keith M. Corlett, Acting Superintendent, New York State Police (NYSP), and James P. O’Neill, Commissioner, New York City Police Department (NYPD), announced the sentence.
“Robert Santos has been deservedly punished with prison time for playing a critical role in a drug trafficking operation, delivering dangerous drugs on our streets and lining his pockets with the illicit proceeds,” stated United States Attorney Donoghue. “This Office and our law enforcement partners will continue to work vigorously to stop the flow of illegal and dangerous drugs onto our streets.”
Between July 2016 and March 2017, Santos and other members of the drug ring distributed large amounts of heroin, cocaine and marijuana throughout New York City, including to out-of-state customers. At the time of Santos’s arrest, DEA special agents seized quantities of those controlled substances, a kilogram press and other drug paraphernalia in his Bronx apartment.
Two co-defendants, John Santos and Kevin Brito, previously pleaded guilty. John Santos was sentenced to 121 months’ imprisonment on January 18, 2019. Kevin Brito is awaiting sentencing.
The government’s case is being handled by the Office’s International Narcotics and Money Laundering Section. Assistant United States Attorney Ryan C. Harris is in charge of the prosecution.
The Defendant:
ROBERT SANTOS
Age: 40
Bronx, New YorkE.D.N.Y. Docket No. 17-CR-147
Brooklyn Man Arrested for Drug-Related, Drive-By ShootingRead the Press Release
Earlier today, defendant Steven Bynum was arrested and charged with firing a handgun into a group of people in furtherance of a drug distribution conspiracy on September 10, 2017, when he shot a pregnant innocent bystander in the head during a drug dispute. Bynum’s initial appearance is scheduled for this afternoon before United States Magistrate Judge Peggy Kuo. If convicted of the charges, Bynum faces up to life imprisonment.
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 charges.“As alleged in the complaint, Bynum showed no regard for human life when he opened fire in the middle of the day on a group of people standing on Dean Street in Brooklyn, severely wounding a pregnant bystander,” stated United States Attorney Donoghue. “The Eastern District will continue working tirelessly with our local and federal partners to hold violent drug traffickers responsible for their activities that put the entire community in danger.”
“As alleged, Bynum committed a brazen act of violence that showed a reckless disregard for his fellow citizens,” stated ATF Special Agent-in-Charge Devito. “He is an example of the type of violent individual that presents a clear and present danger to the law abiding people in the community. The ATF-NYPD Joint Robbery Task Force stands committed to protecting the public from individuals like Bynum that spread violence and fear in their community. I would like to thank the United States Attorney’s Office for their work on this case.”“Gun violence has no place in New York City. In working to reduce crime past already record-lows in New York City, the NYPD is relentless in our pursuit of the relatively small percentage of the population driving the violence and disorder. I commend the NYPD detectives, U.S. Attorney for the Eastern District, and the members of ATF, involved in this investigation whose work resulted in this arrest. Together, we are making the safest large city in America even safer,” stated NYPD Commissioner O’Neill.
According to the complaint, on September 10, 2017 at 12:40 p.m., Bynum was driving a silver Nissan Altima when he fired shots toward a group of people standing in front of 2065 Dean Street in Brownsville. A bystander, who was five-months pregnant at the time, was shot in the head, but survived. A witness to the shooting told members of law enforcement that Bynum was attempting to murder another individual in the group because of a dispute over drugs.
The charges announced today are merely allegations, and the defendant is presumed innocent unless and until proven guilty.
The government’s case is being handled by the Office’s International Narcotics & Money Laundering Section. Assistant United States Attorneys Tyler J. Smith and Francisco J. Navarro are in charge of the prosecution.
The Defendant:
STEVEN BYNUM (also known as “Nitty”)
Age: 37
Brooklyn, New YorkE.D.N.Y. Docket No. 18-MJ-427
New York Diagnostic Testing Facility Owners Plead Guilty in Multi-Million Dollar Health Care Fraud SchemeRead the Press Release
Earlier today, at the federal courthouse in Brooklyn, Tea Kaganovich and Ramazi Mitaishvili, the co-owners of diagnostic testing facilities in Brooklyn, each pleaded guilty to one count of health care fraud and one count of conspiracy to defraud the lawful functions of the Internal Revenue Service (IRS). The pleas took place before United States Magistrate Judge Steven M. Gold.
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), Scott J. Lampert, Special Agent-in-Charge, U.S. Department of Health and Human Services, Office of Inspector General, New York Region (HHS-OIG), and Jonathan D. Larsen, Acting Special Agent-in-Charge, IRS Criminal Investigation (IRS-CI), announced the guilty pleas.
Kaganovich and Mitaishvili, a married couple, were the co-owners of several diagnostic testing facilities, including Sophisticated Imaging Inc., East Coast Diagnostics Inc., East Shore Diagnostics Inc., East West Management Inc. and RM Global Health Inc. As part of their guilty pleas, Kaganovich and Mitaishvili admitted that they submitted fraudulent health care claims for diagnostic testing services. The defendants admitted that they paid approximately $18.5 million in kickbacks for the referral of beneficiaries who submitted themselves to diagnostic testing and other purported medical services. Kaganovich and Mitaishvili falsely reported to the IRS that the illegal kickback payments were legitimate business expenses, which caused relevant tax forms to falsely under-report business income and claim deductions.
The FBI, HHS-OIG and IRS-CI investigated the case, which was brought as part of the Medicare Fraud Strike Force, under the supervision by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Eastern District of New York. Trial Attorneys Debra Jaroslawicz and Sarah Wilson Rocha of the Fraud Section are prosecuting the case. Assistant United States Attorney Tanisha Payne of the Eastern District of New York’s Civil Division is handling the forfeiture matters.
The Medicare Fraud Strike Force 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.
The Defendants:
TEA KAGANOVICH
Age: 47
Brooklyn, New York
RAMAZI MITAISHVILI
Age: 58
Brooklyn, New YorkE.D.N.Y. Docket No. 17-CR-649 (MKB)
New York Diagnostic Testing Facility Owners Plead Guilty in More than $18.5 Million Health Care Fraud SchemeRead the Press Release
Two New York diagnostic testing facility owners pleaded guilty today for their roles in a more than $18.5 million health care fraud scheme.
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, Special Agent in Charge Scott J. Lampert of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) New York Region and Acting Special Agent in Charge Jonathan Larsen of IRS Criminal Investigation (IRS-CI) New York made the announcement.
Tea Kaganovich, 47, and Ramazi Mitaishvili, 58, a married couple, both of Brooklyn, New York, each pleaded guilty to one count of health care fraud and one count of conspiracy to defraud the lawful functions of the IRS before U.S. Magistrate Judge Steven M. Gold of the Eastern District of New York. Sentencing has been scheduled for July, 18, 2019, before U.S. District Judge Margo K. Brodie of the Eastern District of New York.
The defendants were the co-owners of several diagnostic testing facilities in Brooklyn, including Sophisticated Imaging Inc., East Coast Diagnostics Inc., East Shore Diagnostics Inc., East West Management Inc. and RM Global Health Inc. As part of their guilty pleas, Kaganovich and Mitaishvili admitted that they executed a scheme in which they submitted fraudulent health care claims for diagnostic testing services. The defendants admitted that they paid approximately $18.5 million in kickbacks for the referral of beneficiaries who submitted themselves to diagnostic testing and other purported medical services. Kaganovich and Mitaishvili falsely reported to the IRS that the illegal kickback payments were legitimate business expenses, which caused relevant tax forms to falsely under-report business income and claim deductions, they further admitted.
The FBI, HHS-OIG and IRS-CI investigated the case, which was brought as part of the Medicare Fraud Strike Force, under the supervision by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Eastern District of New York. Trial Attorneys Debra Jaroslawicz and Sarah Wilson Rocha of the Fraud Section are prosecuting the case. Assistant U.S. Attorney Tanisha Payne is handling the forfeiture in the case.
The Medicare Fraud Strike Force is part of a joint initiative between the Department of Justice and HHS-OIG 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.
MS-13 Gang Member Sentenced to More than 25 Years in Prison for Attempted Murder that Left a 16-Year-Old ParalyzedRead the Press Release
Earlier today, at the federal courthouse in Brooklyn, Kevin Paniagua, a member of the Centrales Locos Salvatruchas (CLS) clique of La Mara Salvatrucha, also known as MS-13, a transnational criminal organization, was sentenced by United States District Judge Roslynn R. Mauskopf to 308 months in prison for the October 23, 2016 attempted murder of a 16-year-old victim suspected of being a member of the rival 18th Street gang. Paniagua pleaded guilty to the charges in June 2018.
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 sentence.
“With today’s sentence, Paniagua has been held responsible for wanton violence he committed on behalf of of the MS-13 gang that left a teenager paralyzed,” stated United States Attorney Donoghue. “The Department of Justice and its law enforcement partners will continue working tirelessly to eradicate the MS-13 and all gangs that threaten the safety of our communities.”
“These gangs require violence of new recruits, and Mr. Paniagua did all he could to live up to their dangerous and warped initiation process. Our communities get caught in the middle of these deadly attacks and fear the harm that could come from stray bullets intended for a rival gang,” stated FBI Assistant Director-in-Charge Sweeney. “The FBI New York Metro Safe Streets Task Force won't rest until we stop these criminal organizations from filling their ranks with members willing to kill for acceptance.”
“Gang violence will not be tolerated, and the message of this sentencing is clear – the NYPD and our law enforcement partners will hold responsible any violent gang members such as MS-13 for their criminal acts. I thank our colleagues at the Eastern District and the FBI for their unceasing professionalism and dedicated work in removing from our streets anyone who would commit crime and disorder,” stated NYPD Commissioner O’Neill.
In the early morning hours of October 23, 2016, Paniagua and his co-conspirators confronted the victim in Jamaica, Queens. There, they punched and kicked him, and Paniagua pulled out a handgun and shot the victim in the face. Paniagua then attempted to shoot the victim a second time as he lay on the sidewalk, but the gun jammed. The victim is a paraplegic as a result of the attack.
Today’s sentencing is the latest in a series of federal prosecutions by the United States Attorney’s Office for the Eastern District of New York targeting members of MS-13, a violent international criminal organization. MS-13’s leadership is based in El Salvador and Honduras, and the gang has thousands of members across the United States, comprised primarily of immigrants from Central America. Since 2003, hundreds of MS-13 members, including dozens of clique leaders, have been convicted on federal felony charges in the Eastern District of New York. A majority of those gang 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 district, and has convicted dozens of MS-13 leaders and members in connection with those murders. These prosecutions are the product of investigations led by our law enforcement partners, including the FBI’s Safe Streets Task Force, comprising agents and officers of the FBI and NYPD.
The government’s case is being handled by the Office’s Organized Crime & Gang Section. Assistant United States Attorney Nadia Moore is in charge of the prosecution.
The Defendant:
KEVIN PANIAGUA
Age: 20
Queens, New YorkE.D.N.Y. Docket No. 17-CR-307 (RRM)
Two Brooklyn Men Sentenced to Nine Years’ and 15 Years, Respectively, for Kidnapping, Extortion and Torture of VictimRead the Press Release
Earlier today, in federal court in Brooklyn, Michael Crumble was sentenced by United States District Judge Allyne R. Ross to nine years’ imprisonment for kidnapping conspiracy, kidnapping and committing physical violence in furtherance of an extortion relating to the December 2017 abduction, assault and extortion of a victim. On May 3, 2019, co-defendant Ramell Markus was sentenced to 15 years’ imprisonment for his role in the same crimes. The defendants were convicted by a federal jury in May 2018 following a one-week trial.
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 sentences.
“The defendants were seeking cash and drugs when they brutally assaulted the victim, but what they ultimately received as a result of their vicious conduct were lengthy prison sentences,” stated United States Attorney Donoghue. “I commend our FBI and NYPD partners in the New York City Safe Streets Task Force for their outstanding investigative work in this case.”
“The primary mission of the NYPD and our law enforcement partners is to arrest, prosecute, and send away with a meaningful prison sentence anyone who commits violent crime, and instills fear in New Yorkers through their criminal actions,” stated NYPD Commissioner O’Neill. “I want to thank the Eastern District and the investigators from the FBI and NYPD who worked on this case. Their hard work helps ensure that those who engage in serious crimes like kidnapping, extortion and assault will face justice.”
On December 17, 2017, Crumble, Markus, and a co-conspirator kidnapped the victim outside his residence in Queens and forced him into a vehicle. Markus pistol-whipped the victim in a futile attempt to force him to give up narcotics believed to be in the victim’s home. The defendants and their co-conspirator then drove the victim to another location in Brooklyn, and during the next several hours tortured him – smashing a glass into his face and burning his arms with a hot iron – until the drugs and cash were given to them.The government’s case is being handled by the Office’s Organized Crime and Gangs Section. Assistant United States Attorneys Keith D. Edelman and Lindsay K. Gerdes are in charge of the prosecution.
The Defendants:
MICHAEL CRUMBLE
Age: 35
Residence: Brooklyn, New York,RAMELL MARKUS (also known as “Rah,” “Dollah” and “Smooth”)
Age: 36
Residence: Brooklyn, New YorkE.D.N.Y. Docket No. 18-CR-32 (ARR)
Staten Island Man Arrested for Distributing Heroin and FentanylRead the Press Release
A criminal complaint was unsealed today in federal court in Brooklyn charging Nalerton Charles, also known as “Lite,” with conspiring to distribute and distributing more than 40 grams of fentanyl and heroin in Staten Island, New York. Charles was arrested earlier today and is scheduled to be arraigned this afternoon before United States Magistrate Judge Peggy Kuo.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, Ray Donovan, Special Agent-in-Charge, Drug Enforcement Administration, New York Division (DEA), and James P. O’Neill, Commissioner, New York City Police Department (NYPD), announced the charges.
“As alleged, Charles sold heroin laced with fentanyl, and on occasion fentanyl alone, without regard for the potentially deadly consequences of the narcotics to users,” stated United States Attorney Donoghue. “This Office will continue to work tirelessly with our law enforcement partners to save lives by arresting and prosecuting those who contribute to the opioid epidemic by pushing these dangerous drugs.”
“This arrest underscores the dangers posed by opioid traffickers,” said DEA Special Agent-in-Charge Donovan. “Fentanyl is the leading killer among street drugs because of its fatal potency of 2-3 milligrams. Every time you use, you put your life in the hands of a drug dealer. Law enforcement’s tireless effort to safeguard our communities from drug traffickers will continue.”
“Anyone who deals in illegal narcotics, including opioids, should understand that the nation’s best investigators will stop at nothing to fight crime, target traffickers, and keep safe everyone we serve,” stated NYPD Commissioner O’Neill. “I would like to thank the U.S. Attorney for the Eastern District, the DEA, and the investigators involved in this investigation for their efforts which resulted in this arrest.”
As alleged in the complaint, between July 2018 and April 2019, Charles sold at least 40 grams of fentanyl and heroin laced with fentanyl. On September 9, 2018, a 43-year-old individual (Victim-1) died of a drug-related overdose at his residence on Staten Island. Drug packaging found near Victim-1’s body was consistent with the packaging that Charles used for the narcotics he sold. Law enforcement officers obtained video from surveillance cameras outside Victim-1’s residence recorded shortly before his death. The video showed Victim-1 and Charles together. On April 23, 2019, a 29-year-old individual (Victim-2) died of a drug-related overdose at his residence on Staten Island. A search of Victim-2’s phone revealed text messages between Charles and Victim-2. On the morning of Victim-2’s death, he texted Charles, “Is it mix w fentonal…Just wanna know to be careful”. Shortly before Victim-2’s body was discovered, Charles texted Victim-2: “U good”.
Additionally, Charles sold pure fentanyl to a confidential source and an undercover NYPD officer in doses that could have been lethal if consumed.
According to the Centers for Disease Control and Prevention (CDC) and the Department of Justice, drug overdoses have become the leading cause of death for Americans under the age of 50. The increase in overdose deaths has been driven in large part by fentanyl – a drug that has been described as 50 to 100 times more potent than morphine. In New York, from 2014 to 2015, fentanyl overdose deaths rose 135 percent, while heroin overdose deaths rose 28 percent. According to the CDC, in 2016 synthetic opioid overdose deaths — which include fentanyl — more than doubled from 9,580 in 2015 to 19,413.
The charges in the complaint are allegations, and the defendant is presumed innocent unless and until proven guilty. If convicted, the defendant faces a mandatory minimum sentence of five years’ imprisonment and up to 40 years’ imprisonment.
The government’s case is being prosecuted by Department of Justice Trial Attorney Miriam L. Glaser Dauermann of the Criminal Division’s Fraud Section under the supervision of the U.S. Attorney’s Office for the Eastern District of New York and the Criminal Division’s Fraud Section.
The Defendant:
NALERTON CHARLES (also known as “Lite”)
Age: 38
Staten Island, New YorkE.D.N.Y. Docket No. 19-MJ-418
Former Banker Extradited from Malaysia to United States to Face Charges in Multi-Billion Dollar Money Laundering and Bribery Scheme Relating to the 1MDB FundRead the Press Release
A Malaysian national, Ng Chong Hwa, 46, also known as “Roger Ng,” has been extradited from Malaysia to the United States to face charges of conspiring to launder billions of dollars embezzled from 1Malaysia Development Berhad (1MDB), Malaysia’s investment development fund, conspiring to violate the Foreign Corrupt Practices Act (FCPA) by paying bribes to multiple government officials in Malaysia and Abu Dhabi, and conspiring to violate the FCPA by circumventing the internal accounting controls of a major New York-headquartered financial institution (Financial Institution).
Assistant Attorney General Brian A. Benczkowski of the U.S. Department of Justice’s Criminal Division, 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 Acting Special Agent in Charge Ryan L. Korner of the IRS Criminal Investigation (CI), Los Angeles Field Office announced the extradition.
In a three-count indictment unsealed last year, Ng, of Kuala Lumpur, Malaysia, was charged with crimes he allegedly committed while employed as a Managing Director at the Financial Institution, which underwrote more than $6 billion in bonds issued by 1MDB in three separate bond offerings in 2012 and 2013. Ng was arrested in Malaysia on Nov. 1, 2018, pursuant to a provisional arrest warrant issued at the request of the United States, later waived extradition to the United States, and is scheduled to make his first appearance today before U.S. Magistrate Judge Peggy Kuo in federal court in Brooklyn, New York.
As alleged in the indictment, between approximately 2009 and 2014, Ng conspired with others to launder billions of dollars misappropriated and fraudulently diverted from 1MDB, including funds 1MDB raised in 2012 and 2013 through three bond transactions 1MDB executed with the Financial Institution. As part of the scheme, Ng and others conspired to bribe government officials in Malaysia and Abu Dhabi to obtain and retain lucrative business for the Financial Institution, including the 2012 and 2013 bond deals. They further conspired to launder the proceeds of their criminal conduct through the U.S. financial system.
Court filings further allege that Ng, Low Taek Jho, also known as “Jho Low,” and the co-conspirators used co-defendant Low’s close relationships with high-ranking government officials in Malaysia and Abu Dhabi to obtain and retain business for the Financial Institution through the promise and payment of hundreds of millions of dollars in bribes. In the course of executing the scheme, Ng and others at the Financial Institution conspired to circumvent the Financial Institution’s internal accounting controls. Through its work for 1MDB during that time, the Financial Institution received approximately $600 million in fees and revenues along with increased reputational prestige. At the same time, Ng and other co-conspirators at the Financial Institution received large bonuses and enhanced their own reputations at the Financial Institution. In total, more than $2.7 billion was misappropriated from the 1MDB bond proceeds. Low remains at large.
The charges in the indictment are merely allegations, and the defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The investigation was jointly conducted by the FBI’s International Corruption Unit and IRS-CI. The government’s criminal case is being handled by the Criminal Division’s Money Laundering and Asset Recovery Section (MLARS) and Fraud Section and the Business and Securities Fraud Section of the U.S. Attorney’s Office for the Eastern District of New York. MLARS Trial Attorneys Jennifer E. Ambuehl, Woo S. Lee, Mary Ann McCarthy and Kyle Freeny, Fraud Section Trial Attorneys Katherine A. Nielsen and Nikhila Raj and Assistant U.S. Attorneys Jacquelyn M. Kasulis, Alixandra E. Smith and Drew G. Rolle are prosecuting the case. The Criminal Division’s Office of International Affairs provided critical assistance in this case. Additional Criminal Division Trial Attorneys and Assistant U.S. Attorneys within U.S. Attorney’s Offices for the Eastern District of New York and Central District of California have provided valuable assistance with various aspects of this investigation, including with civil and criminal forfeitures.
The Department also appreciates the significant cooperation and assistance provided by the U.S. Securities and Exchange Commission, and the Board of Governors of the Federal Reserve System along with the Federal Reserve Bank of New York. The Department also appreciates the significant assistance provided by the government of Malaysia, including the Attorney General’s Chambers of Malaysia, the Royal Malaysia Police and NCB Interpol Malaysia. The Department also appreciates the significant assistance provided by the Attorney General’s Chambers of Singapore, the Singapore Police Force-Commercial Affairs Division, the Office of the Attorney General of Switzerland, the Judicial Investigating Authority of the Grand Duchy of Luxembourg and the Criminal Investigation Department of the Grand-Ducal Police of Luxembourg.
The International Unit of the Criminal Division’s MLARS is home to the Kleptocracy Asset Recovery Initiative—a team of dedicated prosecutors working to prosecute individuals and forfeit the proceeds of foreign official corruption that has affected the U.S. financial system and, where appropriate, return those proceeds to benefit the people harmed by these acts of corruption and abuse of office. MLARS’s Bank Integrity Unit investigates and prosecutes banks and other financial institutions, including their officers, managers, and employees, whose actions threaten the integrity of the individual institution or the wider financial system.
The Criminal Division’s 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.
Individuals with information about possible proceeds of foreign corruption located in or laundered through the United States should contact federal law enforcement or send an email to [email protected].
Former Banker Extradited from Malaysia to United States to Face Charges in Multi-Billion Dollar Money Laundering and Bribery Scheme Relating to the 1MDB FundRead the Press Release
BROOKLYN, NY – Ng Chong Hwa, also known as “Roger Ng,” a citizen of Malaysia, has been extradited to the United States from Malaysia to face charges of conspiring to launder billions of dollars embezzled from 1Malaysia Development Berhad (1MDB), Malaysia’s investment development fund, conspiring to violate the Foreign Corrupt Practices Act (FCPA) by paying bribes to multiple government officials in Malaysia and Abu Dhabi, and conspiring to violate the FCPA by circumventing the internal accounting controls of a major New York-headquartered financial institution (Financial Institution). In a three-count indictment unsealed last year, Ng, was charged with crimes he allegedly committed while employed as a Managing Director at the Financial Institution, which underwrote more than $6 billion in bonds issued by 1MDB in three separate bond offerings in 2012 and 2013. Ng was arrested in Malaysia on November 1, 2018, pursuant to a provisional arrest warrant issued at the request of the United States, later waived extradition to the United States, and is scheduled to be arraigned today before U.S. Magistrate Judge Peggy Kuo in federal court in Brooklyn, New York.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, Brian A. Benczkowski, Assistant Attorney General of the Department of Justice’s Criminal Division, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Ryan L. Korner, Acting Special Agent-in-Charge, Internal Revenue Service-Criminal Investigation, Los Angeles Field Office (IRS-CI), announced the extradition.
As set forth in the indictment, between approximately 2009 and 2014, Ng conspired with others to launder billions of dollars misappropriated and fraudulently diverted from 1MDB, including funds 1MDB raised in 2012 and 2013 through three bond transactions it executed with the Financial Institution. As part of the scheme, Ng and others conspired to bribe government officials in Malaysia and Abu Dhabi to obtain and retain lucrative business for the Financial Institution, including the 2012 and 2013 bond deals. They also conspired to launder the proceeds of their criminal conduct through the U.S. financial system by funding major Hollywood films and purchasing, among other things, artwork from a New York-based auction house and luxury residential real estate in New York City and elsewhere.
As alleged, Ng, co-defendant Low Taek Jho (also known as “Jho Low”), and their co-conspirators used Low’s close relationships with high-ranking government officials in Malaysia and Abu Dhabi to obtain and retain business for the Financial Institution through the promise and payment of hundreds of millions of dollars in bribes. In the course of executing the scheme, Ng and others at the Financial Institution conspired to circumvent the Financial Institution’s internal accounting controls. Through its work for 1MDB during that time, the Financial Institution received approximately $600 million in fees and revenues along with increased reputational prestige. At the same time, Ng and other co-conspirators at the Financial Institution received large bonuses and enhanced their own reputations at the Financial Institution. In total, Ng and the other co-conspirators misappropriated more than $2.7 billion from 1MDB. Low remains at large.
The charges in the indictment are allegations and the defendants are presumed innocent unless and until proven guilty.
The investigation was jointly conducted by the FBI’s International Corruption Unit and IRS-Criminal Investigation. The government’s criminal case is being handled by the Business and Securities Fraud Section of the United States Attorney’s Office for the Eastern District of New York and the Criminal Division’s Money Laundering and Asset Recovery Section (MLARS) and Fraud Section. Assistant United States Attorneys Jacquelyn M. Kasulis, Alixandra E. Smith and Drew G. Rolle and Trial Attorneys Jennifer E. Ambuehl, Woo S. Lee, Kyle Freeny, Mary Ann McCarthy, Katherine A. Nielsen and Nikhila Raj are prosecuting the case. The Criminal Division’s Office of International Affairs provided critical assistance in this case. Additional Criminal Division Trial Attorneys and Assistant U.S. Attorneys within U.S. Attorney’s Offices for the Eastern District of New York and Central District of California have provided valuable assistance with various aspects of this investigation, including with civil and criminal forfeitures.
The Department also appreciates the significant cooperation and assistance provided by the U.S. Securities and Exchange Commission, and the Board of Governors of the Federal Reserve System along with the Federal Reserve Bank of New York. The Department also appreciates the significant assistance provided by the government of Malaysia, including the Attorney General’s Chambers of Malaysia, the Royal Malaysia Police and NCB Interpol Malaysia. The Department also appreciates the significant assistance provided by the Attorney General’s Chambers of Singapore, the Singapore Police Force-Commercial Affairs Division, the Office of the Attorney General of Switzerland, the Judicial Investigating Authority of the Grand Duchy of Luxembourg and the Criminal Investigation Department of the Grand-Ducal Police of Luxembourg.
The Defendant:
NG CHONG HWA
Age: 51
Kuala Lumpur, MalaysiaE.D.N.Y. Docket No. 18-CR-538 (MKB)
Former Medical Doctor Sentenced to 20 Years’ Imprisonment for Unlawful Distribution of Opioids and Causing the Overdose Death of a PatientRead the Press Release
Martin Tesher, a former family medical doctor, was sentenced today by United States District Judge Raymond J. Dearie to 20 years’ imprisonment for nine counts of unlawful distribution of oxycodone without a legitimate medical purpose and one count of unlawful distribution of oxycodone and fentanyl that resulted in the death of a patient. The Court also ordered Tesher to pay $3,700 in restitution and forfeit $2,725 in criminal proceeds. Tesher was convicted by a federal jury in July 2018 following a nearly two-week trial.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, and Ray Donovan, Special Agent-in-Charge, Drug Enforcement Administration, New York Division (DEA), announced the sentence.
Between June 2013 and January 2017, Tesher prescribed oxycodone tablets and fentanyl patches without a legitimate medical purpose to five patients after learning, or had reason to believe, that these patients were addicted to drugs. None of these patients had verified medical conditions that would require the prescription of Schedule II opioids. While under Tesher’s care, Nicholas Benedetto, 27, tested positive for cocaine, heroin, methadone, oxycodone and fentanyl. Nonetheless, Tesher prescribed oxycodone and fentanyl patches for Benedetto. On March 5, 2016, Benedetto was found dead of a fatal combination of oxycodone and fentanyl, two days after he had been prescribed those drugs by Tesher.
“In the midst of an unprecedented opioid epidemic, Dr. Tesher used his medical skills to harm, not heal and in doing so he cost a young man his life,” stated United States Attorney Donoghue. “Such criminal conduct is an utter betrayal of the trust our society places in doctors and it warrants the severe sentence imposed today.”
“Today’s sentence demonstrates how DEA, EDNY and their many law enforcement partners have come full circle to eliminate the threat of rogue doctors, like Tesher who posed a threat to the public health of the citizens of New York City, Staten Island, and beyond,” stated DEA Special Agent-in-Charge Donovan. “DEA and its law enforcement partners will continue to seek justice for patients like Nicholas Benedetto, as well as the countless other families and friends who have suffered greatly at the hands of this opioid epidemic.”
The government’s investigation was led by the DEA’s Long Island Tactical Diversion Squad, comprising agents and officers of the DEA, Internal Revenue Service, Nassau County Police Department (NCPD), Suffolk County Police Department (SCPD), Port Washington Police Department and Rockville Centre Police Department. The DEA Tactical Diversion Squad also worked in conjunction with officers and agents of the New York City Police Department (NYPD), Criminal Enterprise Investigations, the Department of Health & Human Services, Office of Inspector General and NCPD’s Asset Forfeiture and Intelligence Bureau.
This case is the latest in a series of federal prosecutions by the United States Attorney’s Office for the Eastern District of New York as part of the Prescription Drug Initiative. In January 2012, this Office and the DEA, in conjunction with the five District Attorneys in this district, the NCPD and SCPD, the NYPD and the New York State Police, along with other key federal, state and local government partners, launched the Initiative to mount a comprehensive response to what the United States Department of Health and Human Services Centers for Disease Control and Prevention called an epidemic increase in the abuse of so-called opioid analgesics. To date, the Initiative has brought over 160 federal and local criminal prosecutions, including the prosecution of 20 health care professionals; taken civil enforcement actions against a hospital, a pharmacy and pharmacy chain; removed prescription authority from numerous rogue doctors, and expanded information-sharing among enforcement agencies to better target and pursue drug traffickers. The Initiative also is involved in an extensive community outreach program to address the abuse of pharmaceuticals.
The government’s case is being handled by the Office’s International Narcotics and Money Laundering Section. Assistant United States Attorneys Jennifer M. Sasso and Penelope Brady are in charge of the prosecution.
The Defendant:
DR. MARTIN TESHER
Age: 83
Manhattan, New YorkE.D.N.Y. Docket No. 17-CR-523 (RJD)
Russian Citizen Indicted for $1.5 Million Cyber Tax Fraud SchemeRead the Press Release
Earlier today in federal court in Brooklyn, an indictment was returned charging Anton P. Bogdanov, a citizen of Russia, with wire fraud conspiracy, aggravated identity theft and computer intrusion in connection with a scheme in which he and others used stolen personal information to file federal tax returns and fraudulently obtain more than $1.5 million in tax refunds from the Internal Revenue Service.
Bogdanov was arrested on Phuket, Thailand, on November 28, 2018 pursuant to a provisional arrest request. He was extradited to the United States in March 2019. Bogdanov will be arraigned at a later date.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Jonathan D. Larsen, Acting Special Agent-in-Charge, Internal Revenue Service-Criminal Investigation, New York (IRS-CI), announced the charges.
“As alleged in the indictment, Bogdanov and his co-conspirators combined sophisticated computer hacking and identity theft with old-fashioned fraud to steal more than $1.5 million from the U.S. Treasury,” stated United States Attorney Donoghue. “This Office, together with our law enforcement partners, will use all our available resources to target and bring cybercriminals to justice, wherever they are.”
“In the digital age, many of us either fear having our personal information stolen, or have had it stolen. This investigation revealed a major scheme to defraud the federal government and victimize tax payers. Mr. Bogdanov allegedly thought he could escape justice by hiding outside of our jurisdiction, but working together with our international partners, the FBI has the ability to capture and extradite criminals for their day in court,” stated FBI Assistant Director-in-Charge Sweeney.
"IRS-CI special agents remain committed to working closely with our law enforcement partners around the globe in bringing these cybercriminals to justice," stated IRS-CI Acting Special Agent-in-Charge Larsen.
Between June 2014 and November 2016, Bogdanov and his co-conspirators misappropriated personally identifiable information (“PII”), such as Social Security numbers and dates of birth of identity theft victims, by gaining unauthorized access to the computer systems of private tax preparation firms in the United States. They then changed the information on the tax returns so that the refunds were paid to prepaid debit cards that he and his co-conspirators controlled. Bogdanov and his co-conspirators also used misappropriated PII to obtain prior tax filings of victims from an IRS website, and filed new tax returns, purportedly on behalf of the victims, so that refunds were paid to prepaid debit cards under their control. The debit cards were cashed out in the United States, and a percentage of the proceeds was wired to Bogdanov in Russia. Since discovering this scheme, the IRS has added additional layers of security to its website.
If convicted of the charges, Bogdanov faces up to 27 years’ imprisonment.
The charges in the indictment are allegations, 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 Michael T. Keilty and Jonathan E. Algor are in charge of the prosecution.
The Justice Department’s Office of International Affairs, the FBI’s Legal Attaché abroad and foreign authorities provided critical assistance in securing and coordinating Bogdanov’s arrest and extradition. The Office extends its appreciation to the Royal Thai Police, particularly the Crime Suppression Division, and the FBI’s Legal Attaché for their assistance in apprehending the defendant.
The Defendant:
ANTON P. BOGDANOV (also known as “Kusok”)
Age: 33
RussiaE.D.N.Y. Docket No. 19-CR-197 (MKB)
Two Brooklyn Men Arrested for KidnappingRead the Press Release
A complaint was unsealed today in federal court in Brooklyn charging Akmal Narzikulov and Sherzod Mukumov with kidnapping. Narzikulov and Mukumov were arrested this morning, and are scheduled to make their initial appearances this afternoon before United States Magistrate Judge Vera M. Scanlon.
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 charges.
“As alleged, seeking to collect a debt, Narzikulov and Mukumov, kidnapped the victim off the street in Brooklyn and forced him to open a bank account and give them money,” stated United States Attorney Donoghue. “Now, this Office and our FBI partners will ensure that these defendants pay their debt to society.”
“Narzikulov and Mukumov set out to settle a debt by allegedly kidnapping and assaulting their victim. There’s no place in society for those who handle conflict in this way. Because of their alleged conduct, they will now face serious consequences,” stated FBI Assistant Director-in-Charge Sweeney.
The charged abduction was motivated by an attempt to recover a debt purportedly owed to Narzikulov by the victim. On the morning of March 28, 2019, Narzikulov and Mukumov, along with a third co-defendant who has not been apprehended, assaulted the victim outside an apartment building in Brooklyn. While the victim was clinging to the front door of the building, he felt multiple shocks that were administered from a device that the third individual was holding and lost consciousness.
The victim regained consciousness inside a vehicle with his hands bound. The defendants took the victim to the deserted area of a parking garage where they stripped off his clothes, and took his telephone and other personal items. The defendants later drove the victim to a bank where they forced him to open an account and write them a check in partial payment of the debt. The victim was released later that day, but Narzikulov kept the victim’s phone, driver’s license, green card and bank card.
The charges in the complaint are allegations, and the defendants are presumed innocent unless and until proven guilty.
If convicted of all counts, Narzikulov and Mukumov face a maximum of life imprisonment.
The government’s case is being handled by the Office’s Public Integrity Section. Assistant United States Attorneys Michael H. Warren and Virginia Nguyen are in charge of the prosecution.
The Defendants:
AKMAL NARZIKULOV
Age: 34
Brooklyn, New YorkSHERZOD MUKUMOV
Age: 26
Brooklyn, New YorkE.D.N.Y. Docket No. 19-MJ-358
Operator of Global Cybercrime Marketplace Sentenced to 90 Months’ ImprisonmentRead the Press Release
Earlier today, in federal court in Brooklyn, Djevair Ametovski, a Macedonian citizen, was sentenced by United States District Judge Eric N. Vitaliano to 90 months’ imprisonment after previously pleading guilty to access device fraud and aggravated identity theft. Those crimes related to Ametovski’s operation of “Codeshop,” a website he created for the sole purpose of selling stolen credit and debit card data, bank account credentials and personal identification information. Judge Vitaliano also ordered the defendant to forfeit $250,000 and to pay restitution in an amount to be determined by the Court at a later date. Ametovski was arrested in Ljubljana, Slovenia, in January 2014, and was extradited to the United States in May 2016.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, and David E. Beach, Special Agent-in-Charge, United States Secret Service, New York Field Office (USSS), announced the sentence.
“Ametovski and his co-conspirators were merchants of crime, stealing victims’ information and selling that information to other criminals,” stated United States Attorney Donoghue. “This Office and our law enforcement partners will tirelessly pursue cybercriminals who seek to profit at others’ expense.” Mr. Donoghue thanked the Slovenian Ministry of the Interior and Ministry of Justice, the United States Marshals Service, the U.S. Department of State Regional Security Officers in Slovenia and the Netherlands, and the Justice Department’s Office of International Affairs, for their assistance with the investigation and prosecution of the defendant.
“The sentencing of this transnational cybercriminal emphasizes the commitment of the Secret Service to disrupt and dismantle global criminal networks,” stated USSS Special Agent-in-Charge Beach. “The Secret Service will continue to work closely with our network of law enforcement partners to dismantle criminal enterprises seeking to victimize innocent people, regardless of geographic distance or borders.”
Ametovski and his co-conspirators operated Codeshop between August 2010 and January 2014, victimizing hundreds of thousands of individuals around the world by hacking into the computer databases of financial institutions and other businesses and through “phishing” scams designed to induce accountholders to unwittingly surrender private identification information. They packaged this stolen data for sale and posted it on the Codeshop website, a fully indexed and searchable website that allowed users to search by bank identification number, financial institution, country, state and card brand to find the data they wanted. The stolen data could then be used to make online purchases and to encode plastic cards to withdraw cash at ATMs. Ametovski used a network of online money exchangers and anonymous digital currencies, including Bitcoin, to reap revenues from the Codeshop website and to conceal all participants’ identities, including his own. Over the course of the scheme, Ametovski obtained and sold stolen credit and debit card data for more than 1.3 million cards.
The government’s case is being handled by the Office’s National Security & Cybercrime Section. Assistant United States Attorneys Saritha Komatireddy and David K. Kessler are in charge of the prosecution.
The Defendant:
DJEVAIR AMETOVSKI (also known as “xhevo,” “codeshop,” “sindrom” and “sindromx”)
Age: 32E.D.N.Y. Docket No. 16-CR-409 (ENV)
Former Manager for International Airline Pleads Guilty to Acting as an Agent of the Chinese GovernmentRead the Press Release
Earlier today, in federal court in Brooklyn, New York, Ying Lin pleaded guilty to acting as an agent of the People’s Republic of China (PRC), without notification to the Attorney General, by working at the direction and control of military officers assigned to the Permanent Mission of the People’s Republic of China to the United Nations. Lin, a former manager with an international air carrier headquartered in the PRC (the Air Carrier), abused her privileges to transport packages from John F. Kennedy International Airport (JFK Airport) to the PRC aboard Air Carrier flights at the behest of the PRC military officers and in violation of Transportation Security Administration (TSA) regulations. The proceeding was held before United States District Judge Ann M. Donnelly.
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 Special Agent in Charge Angel M. Melendez, Department of Homeland Security, Homeland Security Investigations (HSI) announced the guilty plea.
“This case is a stark example of the Chinese government using the employees of Chinese companies doing business here to engage in illegal activity,” said Assistant Attorney General Demers. “Covertly doing the Chinese military’s bidding on U.S. soil is a crime, and Lin and the Chinese military took advantage of a commercial enterprise to evade legitimate U.S. government oversight.”
“The defendant’s actions as an agent of the Chinese government helped Chinese military officers to evade U.S. law enforcement scrutiny of packages that they sent from New York to Beijing,” stated United States Attorney Donoghue. “This case demonstrates how seriously we address counterintelligence threats posed by individuals in the United States who work for foreign governments, such as China.”
“The FBI and our law enforcement partners do all we can every day to protect this country from the threats we can see, and we work even harder to find the threats we can’t see,” said FBI Assistant Director-in-Charge Sweeney. “Ms. Lin was secreting packages through some of the country's busiest airports, using her work with the Chinese government to thwart our security measures. We believe this case isn’t unique and hope it serves as an example that the Chinese and other foreign governments can't break our laws with impunity.”
“Lin’s criminal actions exploited the international boundary of the United States as she used her position to smuggle packages onto planes headed to China,” said HSI Special Agent-in-Charge Melendez. “We are committed to ensuring the integrity of our international airports so they are not used as a front for illicit activities.”
Lin worked for the Air Carrier from 2002 through the fall of 2015 as a counter agent at JFK Airport and from the fall of 2015 through April 2016 as the station manager at Newark Liberty International Airport. During her employment with the Air Carrier, Lin accepted packages from the PRC military officers, and placed those packages aboard Air Carrier flights to the PRC as unaccompanied luggage or checked in the packages under the names of other passengers flying on those flights. As the PRC military officers did not travel on those flights, Lin’s actions were contrary to a security program that required that checked baggage be accepted only from ticketed passengers, thereby violating TSA regulations. In addition, Lin encouraged other Air Carrier employees to assist the PRC military officers, instructing those employees that because the Air Carrier was a PRC company, their primary loyalty should be to the PRC.
In exchange for her work at the direction and under the control of PRC military officers and other PRC government officials, Lin received benefits from the PRC Mission and PRC Consulate in New York. These benefits included tax-exempt purchases of liquor, cigarettes and electronic devices worth tens of thousands of dollars. These benefits also included free contracting work at the defendant’s two residences in Queens, New York, by PRC construction workers who were permitted under the terms of their visas to work only on PRC government facilities.
When sentenced, Lin faces up to 10 years’ imprisonment. As part of the guilty plea, Lin agreed to forfeit approximately $25,000 as well as an additional $145,000 in connection with her resolution of the government’s forfeiture verdict in United States v. Zhong, No. 16-CR-614 (AMD).
Mr. Demers and Mr. Donoghue expressed their appreciation to the Transportation Security Administration for their assistance on the case. The government’s case is being handled by the National Security and Cybercrime Section. Assistant United States Attorneys Douglas M. Pravda, Alexander A. Solomon, Ian C. Richardson and Sarah M. Evans are in charge of the prosecution, with assistance from Trial Attorney Matthew R. Walczewski of the Department of Justice’s Counterintelligence and Export Control Section. The forfeiture aspect of the case is being handled by EDNY Assistant United States Attorney Brian Morris of the Office’s Civil Division.
Former Manager for International Airline Pleads Guilty to Acting as an Agent of the Chinese GovernmentRead the Press Release
Earlier today, in federal court in Brooklyn, Ying Lin pleaded guilty to acting as an agent of the People’s Republic of China (PRC), without notification to the Attorney General, by working at the direction and control of military officers assigned to the Permanent Mission of the People’s Republic of China to the United Nations. Lin, a former manager with an international air carrier headquartered in the PRC (the Air Carrier), wrongly facilitated the transport of packages from John F. Kennedy International Airport (JFK Airport) to the PRC aboard Air Carrier flights at the behest of the PRC military officers and in violation of Transportation Security Administration (TSA) regulations. The proceeding was held before United States District Judge Ann M. Donnelly.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, John C. Demers, Assistant Attorney General of the Justice Department’s National Security Division, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Angel M. Melendez, Special Agent-in-Charge, Department of Homeland Security, Homeland Security Investigations (HSI), announced the guilty plea.
“The defendant’s actions as an agent of the Chinese government helped Chinese military officers to evade U.S. law enforcement scrutiny of packages that they sent from New York to Beijing,” stated United States Attorney Donoghue. “This case demonstrates how seriously we address counterintelligence threats posed by individuals in the United States who work for foreign governments, such as China.” Mr. Donoghue expressed his grateful appreciation to the TSA for their assistance on the case.
“This case is a stark example of the Chinese government using the employees of Chinese companies doing business here to engage in illegal activity,” said Assistant Attorney General Demers. “Covertly doing the Chinese military’s bidding on U.S. soil is a crime, and Lin and the Chinese military took advantage of a commercial enterprise to evade legitimate U.S. government oversight.”
“The FBI and our law enforcement partners do all we can every day to protect this country from the threats we can see, and we work even harder to find the threats we can’t see,” said FBI Assistant Director-in-Charge Sweeney. “Ms. Lin was secreting packages through some of the country's busiest airports, using her work with the Chinese government to thwart our security measures. We believe this case isn’t unique and hope it serves as an example that the Chinese and other foreign governments can't break our laws with impunity.”
“Lin’s criminal actions exploited the international boundary of the United States as she used her position to smuggle packages onto planes headed to China,” said HSI Special Agent-in-Charge Melendez. “We are committed to ensuring the integrity of our international airports so they are not used as a front for illicit activities.”
Lin worked for the Air Carrier from 2002 through Fall 2015 as a counter agent at JFK Airport and from Fall 2015 through April 2016 as the station manager at Newark Liberty International Airport. During her employment with the Air Carrier, Lin accepted packages from PRC military officers, and placed those packages aboard Air Carrier flights to the PRC as unaccompanied luggage or checked the packages under the names of other passengers on those flights. Because the PRC military officers did not travel on those flights, Lin’s actions violated TSA regulations that required that checked baggage be accepted only from ticketed passengers. In addition, Lin encouraged other Air Carrier employees to assist the PRC military officers, instructing them that because the Air Carrier was a PRC company, their primary loyalty should be to the PRC.
In exchange for her illegal acts, Lin received benefits from the PRC Mission and PRC Consulate in New York, including tax-exempt purchases of liquor, cigarettes and electronic devices worth tens of thousands of dollars, and free contracting work at her two residences in Queens, by PRC construction workers who were permitted under the terms of their visas to work only on PRC government facilities.
When sentenced, Lin faces up to 10 years’ imprisonment. As part of the guilty plea, Lin agreed to forfeit approximately $25,000 as well as an additional $145,000 in connection with her resolution of the government’s forfeiture verdict in United States v. Zhong, No. 16-CR-614 (AMD).
The government’s case is being handled by the National Security and Cybercrime Section. Assistant United States Attorneys Douglas M. Pravda, Alexander A. Solomon, Ian C. Richardson and Sarah Evans are in charge of the prosecution, with assistance from Trial Attorney Matthew R. Walczewski of the Department of Justice’s Counterintelligence and Export Control Section. The forfeiture aspect of the case is being handled by Assistant United States Attorney Brian Morris of the Office’s Civil Division.
The Defendant:
YING LIN
Age: 48
Queens, New YorkE.D.N.Y. Docket No. 15-CR-601 (AMD)
Long Island Bloods Gang Leader Sentenced to 20 Years in Prison for Narcotics Distribution and Multiple ShootingsRead the Press Release
Earlier today, at the federal courthouse in Central Islip, Michael Smith, also known as “Bum Jew,” a high-ranking member of the Nine Trey Bloods street gang, was sentenced by United States District Judge Joseph F. Bianco to 20 years’ imprisonment for conspiracy to distribute crack cocaine, his participation in two shootings and possessing a firearm. Smith had previously pleaded guilty on November 9, 2015.
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.
“With today’s sentence, Smith has been held accountable for his ruthless conduct and for profiting from the human misery he perpetuated in Suffolk County by supplying crack to other Bloods gang members for re-sale as well as directly to addicts himself,” stated United States Attorney Donoghue. “This Office, together with our law enforcement partners, will continue to work tirelessly to dismantle violent street gangs in our communities.” Mr. Donoghue expressed his gratitude to the FBI’s Long Island Gang Task Force for their outstanding work on the case.
“Michael Smith plagued Suffolk County with his distribution of this deadly drug to fellow dealers, gang members, and addicts,” stated FBI Assistant Director-in-Charge Sweeney. “As if drug dealing wasn’t enough of a threat to the community, Smith then compounded this with his violent activity; involving himself in multiple shootings. Today’s sentencing not only brings Smith to justice, but also helps keep our community safe.”
According to court filings and statements made during the guilty plea, between January 2008 and January 2014, Smith utilized his leadership position within the Bloods to purchase, process and distribute kilograms of cocaine base in Suffolk County. Smith sold narcotics to distribution-level drug dealers, some of whom were other Bloods gang members, and directly to drug users. When distributing narcotics, Smith was typically armed with a gun.
On November 24, 2011, Smith engaged in a verbal dispute with one of his drug suppliers in front of a bar in Patchogue. During the dispute, Smith shot the supplier in the chest. On June 16, 2013, Smith and several fellow Bloods members drove to a home in Central Islip, where they confronted another Bloods member about his role in a prior shooting. During the confrontation, Smith displayed a firearm and pointed it at the intended victim. When a bystander restrained Smith, pointing out that there were many women and children present, Smith ordered a Bloods member to shoot the other Bloods member. Both shooting victims survived their wounds.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorneys Christopher C. Caffarone and Mark E. Misorek are in charge of the prosecution.
The Defendant
MICHAEL SMITH (also known as “Bum Jew”)
Age: 33
Residence: Mastic, New YorkE.D.N.Y. Docket No. 14-CR-485 (S-3) (JFB)
New York City Prison Bribery and Narcotics Smuggling Prosecution Completed with Sentencing of Last DefendantRead the Press Release
Earlier today, in federal court in Brooklyn, the seventh and final defendant was sentenced in connection with a bribery conspiracy to smuggle narcotics and other contraband into New York City prisons. Carl Noel, a former correction officer employed by the New York City Department of Correction, was sentenced today by United States District Judge Pamela K. Chen to six months’ home confinement for accepting bribes in exchange for smuggling narcotics into the Manhattan Detention Complex (MDC). Previously, Noel’s six co-defendants received sentences ranging from six months in a residential facility to 26 months’ imprisonment.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, and Margaret Garnett, Commissioner, New York City Department of Investigation (DOI), announced the sentences.
“Our prison system relies upon the integrity of its employees. For selling his integrity, undermining the security of the prison and endangering his fellow officers, Carl Noel will now go from guard to convicted felon,” stated United States Attorney Donoghue. “All seven members of this smuggling conspiracy, including two correction officers, have now been held accountable for their crimes.” Mr. Donoghue expressed his grateful appreciation to the Drug Enforcement Administration’s New York Drug Enforcement Task Force (DEA), consisting of agents and officers of the DEA, New York City Police Department and New York State Police for their assistance.
“Correction officers have a duty to enforce and abide by the rules of our city jails to protect the safety of their fellow officers and the incarcerated,” stated DOI Commissioner Garnett. “The two correction officers involved in this contraband smuggling scheme violated that pledge, sold out their integrity by accepting bribes, and have now been held to account for their crimes. DOI thanks the U.S. Attorney for the Eastern District for his partnership in stemming the flow of contraband in our City jails and for his office’s prosecution of this important matter.”
The defendants assumed a variety of roles in the conspiracy. Noel and correction officer Christian Mizell, were responsible for smuggling the marijuana and other contraband into the MDC. Their co-defendants, Warren Green and Patrick Johnson, both of whom were incarcerated at the MDC, arranged for marijuana and other contraband to be packaged and delivered covertly to Noel and Mizell, by co-defendants Robert Martino, Malik Holloway and Asha Patterson. Noel and Mizell received thousands of dollars in bribes, among other benefits, to smuggle narcotics past prison security personnel for distribution inside the prison.
Previously, Noel’s co-defendants were sentenced for their roles in the conspiracy. In November 2018, Mizell, was sentenced to 19 months’ imprisonment; in December 2018, Martino was sentenced to six months in a residential facility and two years’ probation; in December 2018, Johnson was sentenced to 21 months’ imprisonment; in December 2018, Patterson was sentenced to one year and one day in prison; in January 2019, Holloway was sentenced to 14 months’ imprisonment; and in February 2019, Green was sentenced to 26 months’ imprisonment.
The government’s case is being handled by Assistant United States Attorney Erik Paulsen of the Office’s Public Integrity Section and Nomi Berenson of the Office’s International Narcotics and Money Laundering Section.
The Defendants:
CARL NOEL
Age: 32
New York, New YorkChristian Mizell
Age: 49
Queens, New YorkWARREN GREEN
Age: 41
Pine City, New YorkPATRICK JOHNSON
Age: 27
Bronx, New YorkROBERT MARTINO
Age: 37
Queens, New YorkMALIK HOLLOWAY
Age: 23
Bronx, New YorkASHA PATTERSON
Age: 44
Queens, New YorkE.D.N.Y. Docket No. 18-CR-60 (PKC)
Former Most Wanted Fugitive Pleads Guilty to Multi-Million Dollar Health Care FraudRead the Press Release
Earlier today, at the federal courthouse in Central Islip, Etienne Allonce, the former co-owner of Medical Solutions Management, Inc. (MSM), a medical equipment company in Hicksville, New York, pleaded guilty to health care fraud. In September 2018, Allonce was expelled from Haiti where he had fled 11 years earlier following the filing of an indictment in the Eastern District of New York charging him with billing Medicare and Medicaid for medical supplies never delivered to patients and never ordered by MSM. Prior to his return to the United States, Allonce was placed on the Most Wanted List of the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG). Allonce pleaded guilty before United States District Judge Joseph F. Bianco.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, announced the guilty plea.
“With today’s guilty plea, Allonce will now pay the price for defrauding American taxpayers in order to benefit himself,” stated United States Attorney Donoghue. “The defendant’s decision to flee to Haiti may have delayed holding him accountable for his crimes, but he could not escape the resolve of this Office and our law enforcement partners to prosecute those who steal from the Medicare and Medicaid benefit programs that serve our most vulnerable citizens, including the elderly.” Mr. Donoghue expressed his grateful appreciation to the agents of the Federal Bureau of Investigation and the HHS-OIG, for their investigative work in the case.
According to court filings, MSM, formerly co-owned by Allonce and his wife, Helen Michel, provided durable medical equipment and supplies to nursing homes. Between April 2003 and March 2007, Allonce and Michel submitted approximately $10 million in false claims to Medicare and Medicaid, seeking payment for medical supplies purportedly provided to patients at nursing homes when those medical supplies had not actually been provided. Allonce fled the United States hours before federal agents arrested his wife. Michel was tried and convicted by a jury in August 2012. She was sentenced in April 2013 to 12 years’ imprisonment, and ordered to forfeit $1.3 million that had been seized by the government.
When sentenced, Allonce faces up to 10 years in prison, as well as restitution and a fine.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorneys Charles P. Kelly, Burton T. Ryan, Jr. and Madeline O’Connor are in charge of the prosecution.
The Defendant:
ETIENNE ALLONCE
Age: 55
Port au Prince, HaitiE.D.N.Y. Docket No 07-CR-889 (JFB)
Former Long Island Defense Contractor and Its CEO Ordered to Pay over $48 Million in Cleanup Costs and Penalties for Discharging Hazardous Substances at Port Jefferson Superfund SiteRead the Press Release
Earlier today, at federal court in Central Islip, United States District Judge Joan M. Azrack entered judgment holding liable Lawrence Aviation Industries, Inc. (LAI), a former defense contractor, and its long-time owner and CEO, Gerald Cohen, for environmental cleanup costs and penalties under the Comprehensive Environmental Response, Compensation, and Liability Act of 1980. As proven at trial, LAI and Cohen, in violation of several environmental laws and regulations, discharged a number of hazardous substances at LAI’s Port Jefferson facility on Long Island that could pose threats to human health and the environment. The Court found that, in addition to contaminating the LAI facility itself, LAI and Cohen were responsible for a mile-long contaminant plume in the groundwater beneath Port Jefferson. The Court’s judgment found LAI and Cohen jointly liable for $48,116,024.31 in costs incurred by the U.S. Environmental Protection Agency (EPA) in cleaning up the site, and imposed civil penalties of $750,000 against both LAI and Cohen, individually, for their failure to comply with requests for information issued by EPA.
“This case and the significant monetary penalties imposed by the Court should serve as a warning to would-be polluters, including individuals, that this Office and the EPA will use every tool at their disposal to protect Long Island’s groundwater and to ensure that those responsible for contamination will foot the bill for clean-up costs,” said Richard P. Donoghue, United States Attorney for the Eastern District of New York.
“EPA is pleased that our collaborative efforts with the United States Attorney’s Office in the Eastern District of New York have resulted in a victory for New Yorkers who have suffered for years with the environmental degradation inflicted by Lawrence Aviation and its owner, Gerald Cohen,” said U.S. Environmental Protection Agency Regional Administrator Pete Lopez. “This judgment provides for the reimbursement of money spent on cleanup work and imposes penalties that act as a deterrent. Our active engagement and work at this site will continue over the long-term, and we are proud that EPA’s Superfund continues to help revitalize this community and communities across the nation.”
In a separate, 37-page Memorandum and Order, the Court detailed the evidence establishing LAI’s and Cohen’s long history of disregard for federal, state and county environmental laws. In the early 1980s, for example, after the Suffolk County Department of Health issued a series of recommendations for LAI to come into compliance with various pollution control laws, LAI used a front-end loader to crush 55-gallon drums containing hazardous substances (among more than 1,600 of such drums identified on the property), resulting in a massive discharge of waste directly onto the ground. Samples taken from those drums revealed impermissibly high levels of trichloroethylene (TCE), among other pollutants. Nearly two decades later, in 1999, testing performed by the New York State Department of Environmental Conservation revealed contamination of groundwater and surface water at the site. Thereafter, in March 2000, the site was placed on the National Priorities List. For these and other reasons, the groundwater in the vicinity of the site is not currently used for drinking water.
EPA’s clean-up of the site, now into its 19th year, has included an exhaustive remedial investigation into the nature and scope of the contamination, various hazardous waste removal and stabilization activities, and the implementation and maintenance of two groundwater treatment systems designed to capture and treat contaminated groundwater. As noted in the Court’s decision, EPA’s activities at the LAI site have resulted in a decrease in size of the groundwater TCE plume and the removal of over 18,000 tons of soil contaminated with polychlorinated biphenyls, among other hazardous substances, including asbestos containing materials.
Various creditors have asserted claims against LAI and Cohen properties based on their respective liens. Those claims remain pending before the Court.
Previously, in 2008, Cohen and LAI pleaded guilty to violating the Resource Conservation and Recovery Act for storing hazardous wastes at the LAI Facility without a permit issued by the EPA or New York State. Cohen was sentenced to a term of imprisonment of one year and a day, and supervised release of thirty-six months. He and LAI were ordered to pay restitution to the EPA of $105,816.
The government’s case is being handled by Assistant United States Attorneys Richard K. Hayes, Robert B. Kambic, Clayton P. Solomon, and Special Assistant United States Attorney James F. Doyle, with assistance from EPA Assistant Regional Counsel Elizabeth Leilani Davis and Andrea L. Leshak. The government’s trial team also included former Assistant United States Attorneys Sandra L. Levy and Morgan J. Brennan.
Armored Car Employee and Two Co-Defendants Plead Guilty to Theft of over $500,000 from Armored Car on Long IslandRead the Press Release
Earlier today, at the federal courthouse in Central Islip, Alexis Laguerra and Raymond Soto, Sr. pleaded guilty to bank larceny involving the theft of an armored car and over $500,000 from the car on November 2, 2018 in Valley Stream. Laguerra was an employee of GardaWorld, the owner of the armored car. Today’s pleas took place before United States Magistrate Judge Anne Y. Shields. An additional defendant, Raymond Soto, Jr., pleaded guilty on March 18, 2019 to bank larceny.
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 Patrick J. Ryder, Commissioner, Nassau County Police Department (NCPD), announced the guilty pleas.
As admitted at the plea proceedings, Laguerra used his insider’s knowledge of GardaWorld to plot and carry out the theft. Laguerra was the assigned GardaWorld driver of the armored car for the overnight shift, and left it unoccupied and unguarded outside a bank. Soto Jr. then arrived, entered the armored car, and drove it a short distance from the bank. He then removed three bags of cash, totaling $510,000, from the armored car. Soto Sr., driving the getaway car, picked up Soto Jr. and the cash, and together they fled the scene. Law enforcement recovered $130,000 of the stolen money from Soto Sr.’s home.
“This inside job will now land these three defendants inside prison for long enough for them to realize, over and over, what a stupid idea this was,” stated United States Attorney Donoghue. “We commend the Nassau County Police Department and the FBI for quickly solving this crime and demonstrating, once again, that crime doesn’t pay.”
When sentenced, all three defendants face up to 10 years in prison, as well as forfeiture of $300,000, restitution of $510,000, and a fine of up to $250,000.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorneys Charles P. Kelly and Madeline O’Connor are in charge of the prosecution.
The Defendants:
ALEXIS LAGUERRA
Age: 30
Brooklyn, New YorkRAYMOND SOTO, SR. (also known as “Razor”)
Age: 48
Richmond Hill, QueensRAYMOND SOTO, JR. (also known as “Rambo”)
Age: 30
Richmond Hill, QueensE.D.N.Y. Docket No. 18-CR-678 (SJF)
Four Members and Associates of Staten Island “Paybacc Crips” Charged with Armed Kidnapping and RobberyRead the Press Release
A criminal complaint was unsealed today in federal court in Brooklyn charging Allan Floyd and Edward Gotay, alleged members of the Paybacc Crips street gang, and alleged gang associates Barin Brown and Jason Crowder with an armed kidnapping and Hobbs Act robbery involving three victims, including a 16-month-old child. Crowder was arrested this morning, and is scheduled for his initial appearance this afternoon before United States Magistrate Judge Lois Bloom. Brown, Floyd and Gotay were previously arrested, and have been detained pending trial.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, John B. Devito, Special Agent-in-Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and James P. O’Neill, Commissioner, New York City Police Department (NYPD), announced the charges and arrests.
“As alleged in the complaint, the defendants brazenly committed a gunpoint kidnapping and robbery in broad daylight, with complete disregard for the well-being of a child caught in the middle of the violent crime,” stated United States Attorney Donoghue. “This Office and our partners in the ATF and the NYPD Joint Robbery Task Force will continue to target criminal gangs and their members who threaten the safety of our communities.” Mr. Donoghue expressed his thanks to the United States Marshals Service for their assistance in the case.
“As alleged, the defendants committed brazen acts of violence that victimized several individuals including a 16-month-old child,” stated ATF Special Agent-in-Charge Devito. “ATF along with its partners remain singularly focused on eliminating the threat to public safety that violent gangs and armed violent offenders pose for their communities. I would like to thank the members of the ATF/ NYPD Joint Robbery Task Force who work tirelessly each day to bring the most violent individuals to justice. I would also like to thank the United States Attorney’s Office for their work in prosecuting this case.”
“Identifying and dismantling gangs and crews, and preventing the violence they cause, is paramount to the NYPD’s mission to ensure that New Yorkers in every neighborhood are not only safe, but feel safe too,” said NYPD Commissioner O’Neill. “I thank and commend the NYPD investigators, as well as our partners at the ATF and the Office of the U.S. Attorney for the Eastern District, for their efforts in bringing these individuals to justice.”
According to court documents, Brown, Crowder, Floyd and Gotay surprised their victims who believed they were meeting Brown for a marijuana sale at Slaight Street and Nicholson Avenue on Staten Island. After arriving at the location, the defendants ordered Victim-1 and his fiancée (Victim-2) out of their car at gunpoint, and demanded money and jewelry. Victim-2 then explained that a child was in the back seat of the car. Floyd ordered the victims, “Get in the back seat we are not doing this here.” While Floyd continued to point his gun at the Victim-1’s head, Gotay entered the car and drove to the couple’s shared residence. Once at the residence, Crowder, Floyd and Gotay donned latex gloves and robbed the victims of money, marijuana, jewelry and collector Michael Jordan sneakers.
The charges in the complaint are allegations, and the defendants are presumed innocent unless and until proven guilty. If convicted of the kidnapping charges, Brown, Crowder, Floyd and Gotay face up to life in prison, and a mandatory minimum of 20 years’ imprisonment for the kidnapping of a minor.
The government’s case is being handled by the Office’s Organized Crime and Gangs Section. Assistant United States Attorney Phil Selden is in charge of the prosecution.
The Defendants:
BARIN BROWN (also known as “Scruff”)
Age: 28
Staten Island, New YorkJASON CROWDER (also known as “Jason Ortiz”)
Age: 29
Staten Island, New YorkALLAN FLOYD (also known as “Rugar Richmond Ace”)
Age: 28
Staten Island, New YorkEDWARD GOTAY (also known as “Younggod Edde”)
Age: 28
Staten Island, New YorkE.D.N.Y. Docket No. 19-MJ-181 (SLT); 19-MJ-198 (JO)
Three Individuals Plead Guilty to Extortion Plot Involving Brooklyn PizzeriaRead the Press Release
Earlier today, at the federal courthouse in Brooklyn, Douglas Singer, Leroy Wilson and Marianne Wood each pleaded guilty to a Hobbs Act extortion conspiracy in connection with their extortion of the former owner of a pizzeria in Sheepshead Bay, Brooklyn. Today’s plea took place before United States Magistrate Judge Steven M. Gold.
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 plea.
“The defendants carefully scripted an intimidation plot, even using an actor as muscle, all in an effort to extort the victim into giving them $198,000,” stated United States Attorney Donoghue. “Protecting business owners from shake downs will always be a priority of this Office and our law enforcement partners.”
“A group of people doing their best to act like a group of mobsters, shaking down a pizzeria owner, will now face a steep price for what they described as ‘kinda fun.’ Business owners who are trying to make an honest living, shouldn’t have to fear someone with no legal power over them, extorting and threatening their livelihoods,” stated FBI Assistant Director-in-Charge Sweeney.
As described in court documents and proceedings, in early 2018 the victim sold Singer a pizzeria business located in a building the victim owned on Coney Island Avenue for $60,000, a $15,600 security deposit and monthly rent payments of $5,200. In November 2018, Singer, Wilson and Wood met the owner at the restaurant. Wood explained that she was Singer’s business partner and worked for an organization handling Singer’s business relating to the pizzeria. She told the owner that he owed the organization $198,000, calculating the figure by adding the sales price of the pizzeria to the security deposit, and to costs for equipment and renovations, and purported operating losses incurred by Singer, and demanded payment that day. Wood then produced photographs of the victim, his spouse and children and explained that it would be in the best interest of everyone for the owner to pay up. Wilson, an actor who had been recruited to play the role of a bodyguard, leaned forward toward the owner during the threatening conversation, revealing a pistol holstered on his hip. After the meeting concluded, the victim reported the threats to law enforcement. The pistol was later determined to be a theatrical prop.
Prior to the November 2018 meeting at the pizzeria, messages between the defendants show that they scripted the planned extortion. Singer wrote to Wilson, “Is it possible for you to wear a dark suit but no tie? Maybe a white shirt? And dark sunglasses?” Singer also wrote to Wilson via Facebook Messenger: “I was wondering if you might be interested in a kind of acting gig. I need a couple of guys to escort my associate [Wood] while she delivers a demand to my landlord... You will simply have to stand in the background and appear to be muscle.” Later, Singer and Wood shared the following exchanges:
Singer: We are confirmed for 11:30 AM at the pizzeria with [the victim].
Wood: Yay
Singer: Let the games begin!
Wood: Oh yeah baby!!
On December 14, 2018, FBI special agents executed a search warrant at Wilson’s residence and recovered a black theatrical prop pistol and a leather jacket that Wilson was seen wearing on surveillance footage during the meeting at the pizzeria.
When sentenced, the defendants each face up to 20 years in prison.
The government’s case is being handled by the Office’s Organized Crime and Gangs Section. Assistant United States Attorney Andrey Spektor is in charge of the prosecution.
The Defendants:
DOUGLAS SINGER
Age: 54
Brooklyn, New York
LEROY WILSON
Age: 47
Haskell, New Jersey
MARIANNE WOOD
Age: 61
Madison, ConnecticutE.D.N.Y. Docket No. 19-CR-147 (LDH)
Criminal Defense Attorney Convicted in Brooklyn Federal Court of Conspiracy and False Statements to the U.S. Bureau of PrisonsRead the Press Release
Scott Brettschneider, an attorney admitted to practice in the state of New York since 1987, was convicted today by a federal jury in Brooklyn of conspiring to make a false statement and making a false statement. Specifically, Brettschneider wrote a false letter to the U.S. Bureau of Prisons (BOP) to assist an inmate in gaining entry to a substance abuse program in order to fraudulently obtain an early release from prison. The verdict followed a five-day trial before United States District Judge Carol Bagley Amon. When sentenced, Brettschneider faces up to five years in prison.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, announced the verdict.
“Brettschneider, a longtime attorney, has been found guilty by a jury of brazenly violating the law he was sworn to uphold by scheming to write a phony letter to help his client get into a drug treatment program and become eligible for early release from prison,” stated United States Attorney Donoghue. “This Office is committed to protecting the integrity of federal programs for drug abuse treatment, to ensure that help is available for those truly in need and not those merely looking for a get-out-of-jail card.” Mr. Donoghue thanked the Federal Bureau of Investigation, New York Field Office, and the Queens District Attorney’s Office for their outstanding assistance on the case.
The evidence at trial proved that between October 2014 and January 2015, Brettschneider, Charles Gallman and Reginald Shabazz-Muhammad conspired to make false statements in a letter to a BOP employee regarding inmate Richard Marshall’s treatment for substance and alcohol abuse in an effort to help Marshall fraudulently gain entry to the Residential Drug Abuse Program (RDAP) at United States Penitentiary Lewisburg in Pennsylvania. In an October 24, 2014 call on Gallman’s phone that was intercepted by law enforcement, Marshall explained to Brettschneider that he needed a letter from a “drug program” to which Brettschneider responded, “alright, alright, we’ll work on that Monday. Ok, I know who to talk to.” Brettschneider, Marshall and Shabazz-Muhammad, who claimed to be the director of program services at Muhammad Mosque No. 7, falsely stated that Marshall had previously been enrolled in the Mosque’s treatment program between 2003 and 2010 to reduce his purported “active drug dependence.” An inmate who is accepted into the RDAP and successfully completes the treatment program is eligible to receive up to a year off his sentence.
Marshall pleaded guilty to conspiracy to make false statements, and was sentenced on October 6, 2018 to three years’ probation and a fine of $1,500. Shabazz-Muhammad pleaded guilty to making false statements, and was sentenced on January 30, 2019 to two years’ probation and a fine of $1,000. Gallman pleaded guilty to conspiracy to make false statements and to violating the Travel Act for bribing a witness, and was sentenced on March 20, 2019 to three years’ imprisonment.
The government’s case is being handled by the Office’s Organized Crime & Gangs Section. Assistant United States Attorneys Andrey Spektor, Lindsay K. Gerdes and Margaret Gandy are in charge of the prosecution.
The Defendant:
SCOTT BRETTSCHNEIDER (also known as “Mighty Whitey”)
Age: 62
Mint Hill, North Carolina
Defendants Who Previously Pleaded Guilty and Were Sentenced:
CHARLES GALLMAN (also known as “T.A.”)
Age: 57
Queens, New York
RICHARD MARSHALL (also known as “Love”)
Age: 57
Charlotte, North Carolina
REGINALD SHABAZZ-MUHAMMAD
Age: 63
Queens, New York
E.D.N.Y. Docket No. 18-CR-123 (CBA)Staten Island Man Sentenced to 36 Months’ Imprisonment for $2.5 Million Real Estate Investment Scheme Targeting Elderly VictimsRead the Press Release
Earlier today, at the federal courthouse in Brooklyn, Yevgeniy Braziler was sentenced by United States District Judge Ann M. Donnelly to 36 months’ imprisonment for his role in a scheme targeting investors, including numerous elderly victims, by selling them partnerships in fraudulent real estate companies. The amount of restitution will be determined by the Court at a later date.
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.
“Braziler has now been held accountable for fleecing the victims of his fraudulent scheme, many of whom were elderly when they were targeted, and nearly half of whom are now deceased,” stated United States Attorney Donoghue. “The Department of Justice and this Office are committed to protecting investors, especially the most vulnerable, from predators like the defendant.”
“The day of reckoning has finally arrived for Mr. Braziler who lacked the moral compass to do the right thing for his investment clients,” stated USPIS Inspector-in-Charge Bartlett. “In many of these cases, he stole from seniors who worked their entire lives saving for a brighter future. Mr. Braziler will have plenty of time in prison to consider the impact his crimes have had on the victims in this case.”
Braziler and his associates promised potential investors, many of whom were elderly and some of whom suffered from dementia, that real estate companies in Brooklyn that he managed would use investments to purchase, renovate, rent and re-sell residential real estate in and around Buffalo and Niagara Falls, promising high returns for the investors. In response, investors sent him over $1.8 million. Instead of using the money for the promised purposes, Braziler stole most of it. For example, investors sent one of Braziler’s investment vehicles, Buffalo Housing, at least $978,000, but Braziler purchased only one property for approximately $12,000, and kept most of the money for himself and others. In all, Braziler kept at least $323,510 of investors’ money for his own use, which he spent on credit card bills, pet supplies, alcohol, restaurants and his child’s school tuition. The investors lost nearly all of their money.
The government’s case is being handled by the Office’s Business and Securities Fraud Section. Assistant United States Attorney Matthew S. Amatruda is in charge of the prosecution.
The Defendant:
YEVGENIY BRAZILER
Age: 40
Staten Island, New YorkE.D.N.Y. Docket No. 17-CR-385 (AMD)
Long Island Man Pleads Guilty to Heroin Distribution ConspiraciesRead the Press Release
Earlier today, in federal court in Brooklyn, Stanley Fuller pleaded guilty to two heroin distribution conspiracies before United States Magistrate Judge Lois Bloom. The conspiracies, charged in two indictments, detail Fuller’s role as a supplier of substantial quantities of heroin to co-conspirators who trafficked the drugs in Jamaica, Queens. When sentenced, Fuller faces a statutory maximum of life in prison for the first conspiracy, and up to 20 years’ imprisonment for the second conspiracy.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, Angel M. Melendez, Special Agent-in-Charge, Department of Homeland Security, Homeland Security Investigations, New York, Ray Donovan, Special Agent-in-Charge, Drug Enforcement Administration, New York Division, and James P. O’Neill, Commissioner, New York City Police Department, announced the guilty plea.
Between April 2013 and July 2015, law enforcement agents intercepted telephone communications during which Fuller discussed the quality of heroin being sold under the brand names “Sweet Dreams,” “Pepsi” and “Coca Cola.” In May 2017, following his arrest and indictment for heroin distribution conspiracy, Fuller was released on bond and placed on home confinement. Notwithstanding, Fuller continued supplying heroin to street-level dealers for distribution. Law enforcement agents again intercepted numerous telephone communications during which Fuller discussed heroin being sold under the brand names “9 & 1/2” and “Tom & Jerry.” In January 2019, Fuller was charged in a second indictment with heroin distribution conspiracy while on pre-trial release.
Fuller is the last of 12 defendants in the first indictment to plead guilty, nine of whom have been sentenced.
The government’s case is being prosecuted by the Office’s International Narcotics and Money Laundering Section. Assistant United States Attorneys Marcia M. Henry, Alicia N. Washington, Erin Reid, Jonathan Algor, Michael Robotti and Lauren Elbert are in charge of the prosecution.
The Defendants:
STANLEY FULLER (also known as “We,” “Webo” and “Morty”)
Age: 43
Valley Stream, New YorkE.D.N.Y. Docket Nos. 15-CR-382 (S-2) (JBW) and 19-CR-21 (JBW)
Town of Hempstead Councilman Pleads Guilty to Tax EvasionRead the Press Release
Earlier today, at the federal courthouse in Central Islip, Edward Ambrosino, a Town of Hempstead Councilman, pleaded guilty to tax evasion before United States District Judge Joanna Seybert. When sentenced, Ambrosino faces up to five years in prison, as well as restitution to the Internal Revenue Service and the New York State Department of Taxation and Finance for taxes owed for the tax years 2011 through 2014. In addition, Ambrosino agreed to pay restitution in the amount of $700,000.
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, Acting Special Agent-in-Charge, Internal Revenue Service-Criminal Investigation, New York (IRS-CI), announced the guilty plea.
“Just like the people who put him in office, Ambrosino owed it to his fellow citizens to pay his fair share of taxes,” stated United States Attorney Donoghue. “This Office and our law enforcement partners are committed to holding accountable public officials who violate the law.”
Ambrosino was an attorney licensed to practice in New York State, specializing in economic and industrial development and financings, and formerly was “Of Counsel” at a law firm in Uniondale, New York. In addition, since March 2003, Ambrosino has served as a Councilman for the Town of Hempstead.
In 2011, Ambrosino incorporated Vanderbilt Consulting Group, Inc., and was the company’s sole shareholder. Ambrosino subsequently opened and controlled a bank account in the name of Vanderbilt, and was the sole authorized signer on that account. From 2013 through 2015, Ambrosino diverted more than $800,000 in legal fees from clients, including the Nassau County Industrial Development Agency and the Nassau County Local Economic Assistance Corporation, that he was required to provide to his law firm, and deposited them into the Vanderbilt bank account. Ambrosino neither admitted nor denied wrongdoing regarding this conduct, but as part of his guilty plea earlier today, he agreed to pay $700,000 in restitution to the law firm.
Ambrosino also evaded substantial income tax, and filed false and fraudulent corporate tax returns on behalf of Vanderbilt for the 2011, 2012 and 2013 tax years. Ambrosino evaded the assessment of income tax by claiming false and fraudulent business expense deductions, and failing to report funds he diverted from his former law firm. As a result, the IRS suffered a tax loss of approximately $254,628, which will be recouped by the IRS via restitution.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorneys Catherine M. Mirabile and Raymond A. Tierney are in charge of the prosecution.
The Defendant:
EDWARD AMBROSINO
Age: 54
North Valley Stream, New YorkE.D.N.Y. Docket No. 17-CR-162 (JS)
Queens Man Sentenced to More than 14 Years’ Imprisonment for Six Armed Robberies in Weekend SpreesRead the Press Release
Earlier today, at the federal courthouse in Brooklyn, Sean Jack was sentenced by United States District Judge Ann M. Donnelly to 176 months’ imprisonment, to be followed by two years’ supervised release, for his participation in the gunpoint robberies of six gas stations and a convenience store in Queens, New York. In July 2018, Jack pleaded guilty to all charges pending against him.
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.
“Six times in two weekends, Sean Jack and his co-defendant terrorized store employees by pointing a gun in their faces,” stated United States Attorney Donoghue. “Today’s sentence punishes the defendant for his crimes and should serve as a lesson to others that this Office and our law enforcement partners are committed to protecting the community from violent predators.”
“The defendant and his co-conspirator engaged in a brazen robbery spree that terrorized and threatened the safety of many innocent store workers and patrons,” stated ATF Special Agent-in-Charge Devito. “ATF and its partners will continue to work every day to ensure that violent individuals like Mr. Jack are brought to justice. Upon removal from society at large, they will be able to contemplate the effects of their crimes while serving substantial time in federal prison. I would like to thank the United States Attorney’s Office for their work on this case.”
“With violence and disorder reduced to historically low levels, the NYPD and our law-enforcement partners have further strengthened our focus on violent crime in our communities. By precisely targeting the small percentage of people responsible for committing much of the violence in New York, we are making the safest large city in America even safer. I commend the NYPD detectives, ATF agents and the prosecutors for the Eastern District of New York whose relentless hard work resulted in this arrest and sentencing,” stated NYPD Commissioner O’Neill.
Between September and October 2017, Jack and co-defendant Brandon Commack entered gas stations and a convenience store and shopped. After bringing their selections to the counter, one of the robbers would brandish a firearm, while the second robber would take money from the cash register. In each of the robberies, one or both of the robbers wore a wig. Commack pleaded guilty in August 2018 to one robbery and one count of brandishing a firearm during crimes of violence, and was sentenced on April 2, 2019 to nine years’ imprisonment.
The superseding indictment charged Jack with the following robberies in Queens:
- BP Gas Station, 59-36 Maurice Avenue, on September 24, 2017
- Mobil Gas Station, 69-08 Eliot Avenue, on September 24, 2017
- Shell Gas Station, 92-10 Astoria Boulevard, on September 24, 2017
- Speedway Gas Station, 134-15 Cross Bay Boulevard, on September 30, 2017
- 7-Eleven Convenience Store, 224-01 Merrick Boulevard, on October 1, 2017
- Sunoco Gas Station, 243-02 South Conduit Avenue, on October 1, 2017
The government’s case is being handled by the Office’s General Crimes Section. Assistant United States Attorneys Nicholas Moscow and Erin Reid are in charge of the prosecution.
The Defendant:
SEAN JACK
Age: 36
Jamaica, New YorkE.D.N.Y. Docket No. 17-CR-569 (AMD)
Former Chairman of the Village of Hempstead Housing Authority Convicted by A Federal Jury of Corruption ChargesRead the Press Release
A federal jury in Central Islip returned a guilty verdict today against Cornell Bozier, the former Chairman of the Board of Commissioners at the Village of Hempstead Housing Authority (VHHA) on four counts of an indictment charging him with conspiracy to commit honest services wire fraud and federal program bribery. The verdict followed a two-week trial before United States District Judge Joan M. Azrack. When sentenced, Bozier faces a maximum sentence of 20 years’ imprisonment.
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 Christina Scaringi, Special Agent-in-Charge, U.S. Department of Housing and Urban Development, Office of the Inspector General, Northeast Region (HUD-OIG), announced the verdict.
“As found by the jury, having been trusted to serve the residents of low-income housing as a Village of Hempstead public official, Bozier instead lied, cheated and stole federal funds for himself,” stated United States Attorney Donoghue. “If, like Mr. Bozier, you betray the public you are hired to serve, expect to find yourself in a courtroom facing the consequences.”
“Plain and simple, this is a case of greed; Bozier and his co-conspirators engaged in public corruption for personal gain,” said HUD-OIG Special Agent-in-Charge Scaringi. “We are not talking about the abstract here, this is a case involving real money that should have been used to improve the lives of those living within the public housing authority that these offenders were entrusted to serve.”
The evidence at trial established that between March 2011 and November 2012, Bozier engaged in schemes with his co-conspirators – contractors James Alimonos and Peter Caras – to defraud the citizens of the Village of Hempstead (the Village) and the VHHA by soliciting and accepting bribes and kickbacks in exchange for Bozier using his official position to ensure that the Board of Commissioners (the Board) accepted fraudulently submitted bids for VHHA construction projects. The VHHA is responsible for providing and maintaining safe and affordable low-income housing in the Village. As chairman, Bozier controlled the Board and could bypass HUD regulations for bidding and for awarding construction projects.
The Totten Avenue Intercom Project
In August 2011, Bozier fraudulently obtained an “emergency” designation from the Board for repair of the intercom system at a VHHA on Totten Avenue in the Village without the public bid requirement to ensure that the contract was awarded to the lowest qualified bidder. Alimonos then directed another co-conspirator to submit a falsely inflated bid of $95,740 to replace the intercom system. Alimonos paid Bozier approximately $30,000 for securing the Board’s acceptance of the fraudulent bid.
The Yale Street Roof Project
In September 2011, the VHHA received four proposals from companies controlled by Alimonos to replace the roof of a building on Yale Street in the Village. Bozier accepted a bid of $248,000, although the bid lacked the required paperwork. Bozier then secured the Board’s approval, and the VHHA paid a total of $273,900 for the project. Thereafter, Alimonos hired another construction company to replace the roof for $23,000. In return, Bozier received a kickback of approximately $55,000 from his co-conspirators.
The Gladys Avenue Piping Project
In July 2012, the VHHA received two proposals from companies controlled by Alimonos to repair the boiler piping system at a building on Gladys Avenue in the Village. Bozier ensured that the $164,000 contract was awarded to a company established in the name of Alimonos’s wife, although the bid lacked the required supporting information. Alimonos then hired another construction company to do the repair work for approximately $26,000. In return, Bozier received approximately $30,000 in kickback payments from Alimonos and Caras.
Alimonos and Caras previously pleaded guilty to honest service fraud conspiracy and testified at trial against Bozier. Both are awaiting sentencing.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorneys Paul G. Scotti and Artie McConnell are in charge of the prosecution. Assistant United States Attorney Madeline O’Connor of the Office’s Civil Division is handling matters related to forfeiture.
The Defendant:
CORNELL BOZIER
Age: 58
North Baldwin, New YorkE.D.N.Y. Docket No. 15-CR-303 (JMA)
El Salvador National Arrested for Illegally Reentering the United States Following DeportationRead the Press Release
A criminal complaint was filed today in federal court in Central Islip charging William Umberto Martinez Chavez with illegal reentry into the United States. The defendant was arrested this morning in Huntington, New York, and made his initial appearance this afternoon before United States Magistrate Judge A. Kathleen Tomlinson, where he was ordered detained.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, and Thomas R. Decker, Field Office Director, U.S. Immigration and Customs Enforcement (ICE), Enforcement and Removal Operations (ERO), announced the arrest.
“As alleged, Martinez Chavez illegally returned to the United States after he served a lengthy New York State prison sentence for a homicide he committed on Long Island, and was deported to El Salvador,” stated United States Attorney Donoghue. “This Office is firmly committed to prosecuting criminals who illegally reenter the United States, especially MS-13 gang members who break into the country after deportations resulting from violent crime convictions.” Mr. Donoghue expressed his appreciation to the Joint Criminal Alien Removal Taskforce and the United States Marshals NY/NJ Regional Fugitive Task Force, Long Island Division, for their assistance with the case.
“Martinez Chavez is a known MS-13 gang member who was convicted of manslaughter, served his time and was removed from the United States, only to resurface on the same streets after having entered illegally,” stated ERO New York Field Office Director Decker. “It is the job of the brave men and women of ICE to take those who break the laws of this country off the streets and see that they are removed back to their home countries.”
According to the complaint, Martinez Chavez, a Salvadoran national, was deported from the United States in October 2017, after having been convicted and served a sentence for manslaughter in connection with a May 2000 stabbing outside a deli in Huntington. Martinez Chavez stabbed the victim, severing his aorta and causing his death. The defendant has admitted to previously being a member of the MS-13 gang and still bears MS-13 tattoos, on his abdomen and on his chest.
If convicted, Martinez Chavez faces a maximum term of imprisonment of 20 years.
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 Long Island Criminal Division. Assistant United States Attorney Jonathan Siegel is in charge of the prosecution.
The Defendant:
WILLIAM UMBERTO MARTINEZ CHAVEZ (also known as “William Martinez,” “William Martines,” “Wiliam Martinez Chavez” and “Julio Cordero”)
Age: 40
Huntington, New YorkE.D.N.Y. Docket No. 19-MJ-297 (AKT)
Honduran National Arrested for Illegally Reentering the United States Following DeportationRead the Press Release
A criminal complaint was filed today in federal court in Central Islip charging Gerson Eli Turcios Maradiaga with illegal reentry into the United States. The defendant was arrested Thursday and made his initial appearance this afternoon before United States Magistrate Judge Arlene R. Lindsay at the federal courthouse in Central Islip.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, and Thomas R. Decker, Field Office Director, U.S. Immigration and Customs Enforcement (ICE), Enforcement and Removal Operations (ERO), announced the arrest.
“As alleged, Turcios illegally returned to the United States after his deportation for a homicide conviction,” stated United States Attorney Donoghue. “This Office will prosecute felons who reenter the United States. The message to deported felons is clear – if you are deported from the United States, stay out or the only thing you will be returning to is prison.” Mr. Donoghue expressed his appreciation to the Nassau County Police Department and the United States Marshals NY/NJ Regional Fugitive Task Force, Long Island Division, for their assistance with the case.
Turcios has a felony conviction and was sentenced in the United States before being removed to his home country,” stated ERO New York Field Director Decker. “This case is one of a convicted criminal who re-entered the country illegally, only to be right back in our New York neighborhoods. ERO officers will continue to seek out those criminals aliens who enter the country with no regard for the laws of this nation, protecting the public with steadfastness and professionalism.”
According to the complaint, Turcios, a Honduran national, was deported from the United States in November 2012, after having been convicted in December 2008 of manslaughter in connection with the February 17, 2008 shooting outside Don Juan’s La Boom Club in Westbury, New York, killing one and wounding several others. At the time of the shooting, the defendant was a member of the 18th Street gang.
If convicted, Turcios faces a maximum term of imprisonment of 20 years’ incarceration.
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 Long Island Criminal Division. Assistant United States Attorney Catherine M. Mirabile is in charge of the prosecution.
The Defendant:
GERSON ELI TURCIOS MARADIAGA
Age: 28
Levittown, New YorkE.D.N.Y. Docket No. 19-MJ-289 (ARL)
Five Defendants Arrested for Trafficking Heroin, Fentanyl and Crack Cocaine in Riverhead AreaRead the Press Release
An indictment was unsealed today in federal court in Central Islip charging Robert Quarles, Charles Scruggs, Michael Steketee and Deena Colgan with conspiring to distribute heroin, fentanyl and cocaine base in the Riverhead area. Quarles, Scruggs and Steketee were arrested this morning, and were arraigned this afternoon before United States Magistrate Judge Arlene R. Lindsay, where they were ordered detained. A related criminal complaint has also been filed charging Tyrone Ligon with possession with intent to distribute cocaine, heroin and fentanyl. Ligon was arrested this morning and was also ordered detained by Magistrate Judge Lindsay at his arraignment this afternoon. Colgan is in custody and will be arraigned on April 2, 2019.
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 charges.
“As alleged, the defendants sold dangerous drugs with no regard for the harm caused to the users or residents of the community,” stated United States Attorney Donoghue. “This Office and our law enforcement partners at the FBI and the East End Drug Task Force will continue to tirelessly investigate and prosecute individuals who contribute to the opioid epidemic.”
“These dealers who allegedly trafficked in deadly illegal drugs don’t see the destruction left in their wake, they only see the money they make from pushing and selling. The opioid deaths in our community and our country get worse each day, but the FBI Long Island Gang Task Force and our law enforcement partners won’t stop investigating and arresting all the dealers we can to keep more people from dying,” stated FBI Assistant Director-in-Charge Sweeney.
Between January 2018 and March 2019, the defendants were involved in a conspiracy to distribute several controlled substances, including over one kilogram of heroin, 40 grams of fentanyl, and crack cocaine. At the time of his arrest, Quarles was found in possession of distribution quantities of crack cocaine and heroin. Ligon was also found in possession of narcotics when he was taken into custody.
The charges in the indictment and complaint are allegations, and the defendants are presumed innocent unless and until proven guilty. If convicted, Colgan, Quarles, Scruggs and Steketee face up to life imprisonment; Ligion faces up to 20 years in prison.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorney Michael Maffei is in charge of the prosecution.
The Defendants:
ROBERT QUARLES (also known as “Black”)
Age: 43
Mastic, New YorkCHARLES SCRUGGS (also known as “Chuck”)
Age: 31
Riverhead, New YorkMICHAEL STEKETEE
Age: 41
Flanders, New YorkTYRONE LIGON
Age: 49
Southampton, New YorkDEENA COLGAN
Age: 47
Riverhead, New YorkE.D.N.Y. Docket No. 19-CR-156 (DJH)
Colombian Banker Extradited for Money LaunderingRead the Press Release
Jaime Alberto Giraldo Alzate will be arraigned today in federal court in Brooklyn before United States Magistrate Judge Sanket J. Bulsara on an indictment charging him with money laundering and money laundering conspiracy. Alzate allegedly laundered over $200,000 for undercover law enforcement agents in his capacity as a Foreign Commercial Business Manager at an international bank in Colombia. Alzate was extradited to the United States from Colombia on March 27, 2019.
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), announced the extradition.
“As alleged, the defendant corruptly abused his position as a bank employee to launder money for undercover agents he believed were narcotics traffickers,” stated United States Attorney Donoghue. “I commend the outstanding investigative work by IRS undercover agents that led to the arrest of the defendant, who boasted he had been laundering drug proceeds for years.”
“The alleged laundering of illegal drug profits is as important and essential to drug traffickers as the very distribution of their illegal drugs,” stated IRS-CI Acting Special Agent-in-Charge Larsen. “Without these ill-gotten gains, the traffickers cannot finance their organizations. As the role of IRS CI in narcotics investigations is to follow the money, we are highly adept at financially disrupting and dismantling drug trafficking organizations as well as identifying third parties that facilitate the laundering of these funds such as Alzate. We are proud to provide our financial expertise as we work alongside the United States Attorney’s Office to bring criminals to justice.”
In mid-2016, IRS-CI special agents received information that Alzate was laundering money for narcotics traffickers. As alleged in the indictment, undercover agent (“UC”) met with Alzate and said he wanted to launder money from the United States to Colombia. The UC explained that the people he worked for were “only interested in two things, selling their coke and money.” Alzate responded that he could receive the money via wire transfers and deposit it into two accounts at his bank – up to $130,000 per week – for a fee of four percent of the amount of money laundered. Alzate assured the UC that he had been working at the bank for 27 years and had been “doing this for years.”
Following Alzate’s instructions, in January and April 2017, the UC transferred money from a bank account in Brooklyn to an account at the International Bank. Thereafter, Alzate gave checks to other IRS-CI undercover agents, representing the amount of money laundered, less his four percent fee.
The charges in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty.
The government’s case is being handled by the Office’s International Narcotics & Money Laundering Section. Assistant United States Attorney Tyler Smith is in charge of the prosecution. The Department of Justice’s Office of International Affairs assisted in the extradition.
The Defendant:
Jairo Alberto Giraldo Alzate
Age: 53
Barranquilla, ColombiaE.D.N.Y. Docket No. 17-547 (ARR)
Staten Island Man Indicted for Defrauding Investors Trading in Virtual CurrencyRead the Press Release
A nine-count indictment was unsealed today in federal court in Brooklyn charging Patrick McDonnell, also known as “Jason Flack,” with wire fraud in connection with a scheme to defraud investors in virtual currency. McDonnell was arrested earlier today, and is scheduled to be arraigned this afternoon before United States Magistrate Judge Sanket J. Bulsara.
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 charges.
“As alleged, the defendant defrauded investors by making false promises and sending them fraudulent balance statements, hiding the fact that he was stealing their money for his personal use,” stated United States Attorney Donoghue. “The defendant’s fraud ends now, he will be held responsible for his criminal conduct.” Mr. Donoghue expressed his grateful appreciation to the United States Commodity Futures Trading Commission (CFTC) for its significant cooperation and assistance in this case.
“The defendant, Patrick K. McDonnell, used smoke and mirrors to allegedly dupe investors into paying his company—CabbageTech, for advice and strategies on crypto-currency trading,” stated USPIS Special Agent-in-Charge Bartlett. “However, Postal Inspectors and their federal law enforcement partners unmasked McDonnell and his scheme to defraud investors, and brought him to justice for his alleged criminal actions.”
As alleged in the indictment, between approximately November 2014 and January 2018, McDonnell portrayed himself as an experienced trader in virtual currency, promising customers 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. When investors requested refunds, McDonnell initially offered excuses for delays in repayment, and eventually stopped responding at all. In total, 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 currency.The charges in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty. If convicted, McDonnell faces a maximum sentence of 20 years’ imprisonment.
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)
Former Dentist Sentenced to More than 10 Years’ Imprisonment for Drug Trafficking and Possession of Child PornographyRead the Press Release
Earlier today, John Wolf, a former Manhattan dentist, was sentenced in federal court in Brooklyn to 121 months’ imprisonment by United States District Judge William F. Kuntz II for conspiring to distribute methamphetamine and possessing child pornography. As part of his sentence, Wolf must serve 10 years’ supervised release following his imprisonment and not have unsupervised contact with minors. Wolf will also be required to register as a sex offender upon his release from 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 Ray Donovan, Special Agent-in-Charge, Drug Enforcement Administration, New York (DEA), announced the sentence.
“Wolf was once a successful dentist who now finds himself deservedly confined behind prison walls for conspiring to distribute dangerous drugs and sharing images of children being subjected to sexual violence,” stated United States Attorney Donoghue. “Today’s sentence reflects the seriousness of the defendant’s crimes and demonstrates the commitment of the Department of Justice to protecting the community.” Mr. Donoghue expressed his grateful appreciation to the FBI’s New York Violent Crimes Against Children International Task Force for leading the investigation.
Wolf pleaded guilty in October 2017 to conspiracy to possess with intent to distribute methamphetamine and possession of child pornography. During the investigation, the defendant was consensually recorded discussing distribution of methamphetamine and provided child pornography to a person who, unbeknownst to him, was an undercover FBI agent. The child pornography included depictions of toddlers being raped by adult men.
The government’s case is being handled by the Office’s Organized Crime and Gangs Section. Assistant United States Attorney Moira Kim Penza is in charge of the prosecution.
The Defendant:
JOHN WOLF
Age: 62
Residence: New York, New YorkE.D.N.Y. Docket No. 15-CR-624 (WFK)
Colombo Crime Family Soldier Pleads Guilty to RacketeeringRead the Press Release
Earlier today, Jerry Ciauri, also known as “Fat Jerry,” an inducted member of the Colombo organized crime family (the Colombo family), pleaded guilty before United States District Judge William F. Kuntz II to racketeering, including predicate acts of extortionate collection of extensions of credit. Another inducted member of the Colombo family, Vito Difalco, also known as “Victor” and “The Mask,” and two Colombo family associates, Salvatore Disano and Joseph Maratea, pleaded guilty to racketeering last week. On March 15, 2019, Joseph Rizzo, an associate of the Colombo family, pleaded guilty to stalking conspiracy. The defendants’ criminal activities took place in Brooklyn, Staten Island and elsewhere between March 2017 and June 2018.
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 guilty pleas.
According to court filings and facts presented during the guilty plea proceeding, Ciauri made extortionate loans and used extortionate means to collect payments on those loans from six victims. In connection with this loansharking business, Ciauri once threatened to shoot a loansharking partner who had fallen behind making payments to Ciauri, and on another occasion, enlisted an associate to slash a victim’s tires in the middle of the night. Disano assisted Ciauri in collecting debts enforced with extortionate means. Rizzo and Ciauri also stalked Ciauri’s former loansharking business partner after he started to cooperate with law enforcement officers and stopped assisting Ciauri with the business.
Difalco and Maratea also ran a loansharking business. In connection with that business, Difalco used extortionate means to collect debts from eight victims, and Maratea helped collect debts from five of those victims. In one conversation, Difalco threatened a loansharking victim by telling him that he had a past history of setting fire to the cars of those who failed to make timely payments; Difalco told the victim, “Good things happen to me when I stay calm see like I was by your house the other day…. Four years ago, I would have put the Benz on fire.”
When sentenced, Ciauri, Difalco, Disano and Maratea face up to 20 years’ imprisonment. Rizzo faces a maximum of five years on the stalking conspiracy charge.
The government’s case is being handled by the Office’s Organized Crime & Gangs Section. Assistant United States Attorneys Elizabeth A. Geddes and Mathew S. Miller are in charge of the prosecution.
The Defendants:
JERRY CIAURI (also known as “Fat Jerry”)
Age: 59
Brooklyn, New YorkVITO DIFALCO (also known as “Victor” and “The Mask”)
Age: 63
Brooklyn, New YorkSALVATORE DISANO
Age: 48
Brooklyn, New YorkJOSEPH MARATEA
Age: 42
Brooklyn, New YorkJOSEPH RIZZO
Age: 51
Staten Island, New YorkE.D.N.Y. Docket No. 18-CR-337 (WFK)
Former Chinese Diplomat and Head of U.S. Operations for Chinese Construction Business Convicted of Engaging in Forced Labor and Related Charges by A Federal JuryRead the Press Release
On Friday, March 22, 2019, following a three-week trial, a federal jury in Brooklyn returned a guilty verdict on all five counts against Dan Zhong, the head of U.S. operations of Chinese Liaoning Rilin Construction (Group) Co. Ltd. (also known as China Rilin) and U.S.-based subsidiaries, including U.S. Rilin, who was formerly a diplomat of the People’s Republic of China (PRC). The counts of conviction were conspiracy to provide forced labor, providing and benefitting from forced labor, concealing passports and immigration documents in connection with forced labor (also known as document servitude), conspiracy to commit alien smuggling and conspiracy to commit visa fraud. The jury also found as a sentencing enhancement that Zhong engaged in the alien smuggling for commercial gain. Today, the jury separately concluded that six properties where the forced labor victims worked, including a high rise building in midtown Manhattan and a mansion on Long Island, are forfeitable. Zhong’s co-defendant in the indictment, Landong Wang, is a fugitive, believed to be in the PRC.
When he is sentenced by United States District Judge Ann M. Donnelly, Zhong faces up to 20 years’ imprisonment.
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), Angel M. Melendez, Special Agent-in-Charge, Department of Homeland Security, Homeland Security Investigations (HSI), New York, and Timothy W. Dumas, Special Agent-in-Charge, New York Field Office, Diplomatic Security Service, U.S. Department of State (DSS), announced the verdict.
“Unlike Chinese Communist elites, Americans do not practice, condone or tolerate forced labor,” stated United States Attorney Donoghue. “Mr. Zhong, a former long-time PRC diplomat, believed he could oppress and coerce Chinese construction workers in New York, forcing some to work for years without pay under the threat of physical harm and financial ruin. His crimes not only violate our laws, they contradict the values of this country.” Mr. Donoghue expressed his appreciation to the Department of State’s Office of Foreign Missions and the FBI’s Field Office in Newark, New Jersey, for their assistance on the case.
“These are human beings, forced to work seven days a week with no pay and forced to live in squalid housing with dozens of others, trapped by guards who would hunt them down and drag them back if they escaped,” stated FBI Assistant Director-in-Charge Sweeney. “This didn’t take place in a foreign country, this happened here in Manhattan, on Long Island and New Jersey. No human being deserves to be treated this way, in any country. Mr. Zhong and others may have believed they could get away with human trafficking and forced labor in this country because of the Chinese government’s disregard of the laws where it operates, but they will now face justice for their crimes.”
“With the hopes of attaining the proverbial American dream, victims were brought to the U.S. by Zhong, only to be forced to live in cramped, unsafe conditions, with locks on the doors so they could not escape,” stated HSI Special Agent-in-Charge Melendez. “Many worked 14 hour days for years, submitting to threats of financial ruin to their families or threats of violence. Forced labor simply put is modern day slavery and this investigation shed light on the willingness of criminals to exploit people for personal financial gain. We will seek prosecution of anyone who looks to increase their profit by forcing people to work with no pay.”
“This case illustrates the global reach of the Diplomatic Security Service and the effectiveness of federal agency collaboration to stop criminals from illegally obtaining U.S. visas to exploit foreign workers,” stated DSS Special Agent in Charge Dumas. “We’re committed to investigating visa fraud committed by U.S. business operators and others who facilitate criminal visa applications at U.S. Embassies and Consulates around the world.”
The evidence at trial established that Zhong’s company performed construction work on a variety of PRC government facilities in the United States, including the Permanent Mission of the PRC to the United Nations, the Embassy of the PRC to the United States, and PRC Consulates General in the United States (collectively, the PRC Facilities). Initially, Zhong, and his co-conspirators required workers to turn over substantial “security deposits,” including the deeds to their family homes that were subject to forfeiture if they refused to work as a key element of “debt bondage” contracts the workers signed. Once in the United States, the workers also had to surrender their passports to the conspirators. The workers were forced to put in 14-hour days, seven days a week, for years without receiving any pay. Twenty or more workers were housed in one and two-family houses in Jersey City, New Jersey. Inspections of some of these houses revealed numerous fire code violations, as well as illegal locks to prevent the workers from escaping. Through this scheme, Zhong and his co-conspirators attempted to prevent escape by the workers, at times using violent force. Several workers testified about their families being threatened and forced out of their homes in the PRC by Rilin. One worker testified that after escaping and being re-captured, he was warned that his legs would be broken if he again tried to escape. More recently, Zhong and his co-conspirators abused the legal process in the PRC by photographing a worker and his wife in front of a pile of cash totaling RMB1 million belonging to Rilin and then obtaining from a PRC court an enforcement order against the worker’s wife for RMB1 million after the worker escaped.
Although the visa applications prepared for the workers provided that the workers would work only at PRC diplomatic facilities, the evidence at trial established that Zhong and his co-conspirators forced them to work on private construction projects, including a commercial building in midtown Manhattan and private residences in Queens and elsewhere on Long Island. Zhong also used these workers as personal servants, preparing meals, chauffeuring him, and performing yard work.
The government’s case is being handled by the Office’s National Security and Cybercrime Section. Assistant United States Attorneys Alexander A. Solomon, Ian C. Richardson and Craig R. Heeren are in charge of the prosecution, with assistance provided by Assistant United States Attorney Brian Morris of the Office’s Civil Division, which is responsible for the forfeiture aspect of the case.
The Defendant:
DAN ZHONG
Age: 49
Livingston, New JerseyE.D.N.Y. Docket No. 16-CR-614 (AMD)
Gambino Crime Family Soldier Sentenced to 28 Months’ Imprisonment for Loansharking ConspiracyRead the Press Release
Paul Semplice, a member of the Gambino organized crime family, was sentenced today to 28 months in prison by United States District Judge Pamela K. Chen at the federal court in Brooklyn for conducting a loansharking scheme in which he extended extortionate loans with annual interest rates up to 54 percent.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, announced the sentence.
“Semplice targeted victims desperate for loans and used his status as a Mafia soldier to make sure they paid the exorbitant interest rate,” stated United States Attorney Donoghue. “With today’s sentence, the defendant will pay for his crimes in prison.” Mr. Donoghue thanked the Federal Bureau of Investigation and the New York City Police Department for their investigative work on this case.
Semplice, a long-time made member of the Gambino crime family, engaged in a conspiracy with others to make extortionate extensions of credit to multiple victims. During one recorded conversation with a cooperating witness (CW), Semplice boasted that he had a “very special relationship,” “like brothers,” with a captain in the family and “answer[ed] to nobody but him.” In another recorded conversation with the CW, Semplice explained that in connection with a $200,000 loan to victim John Doe #1, he collected $9,000 interest per month, or 54 percent, and personally kept $8,000. Semplice called the arrangement “a beautiful thing.”
On November 18, 2016, during a lawfully intercepted conversation, Semplice talked about abusing victim John Doe #2. “I started abusing him, right. He was in his forties…. Once I – I had to smack him. I go, ‘What?’ Bang! I go, ‘I’ll smack you again.’ He goes, ‘Why?’ ‘Cause I shouldn’t have to come see you.’ ”
The government’s case is being handled by the Office’s Organized Crime & Gangs Section. Assistant United States Attorneys Tanya Hajjar and Drew G. Rolle are in charge of the prosecution.
The Defendant:
PAUL SEMPLICE
Age: 55
Brooklyn, New YorkE.D.N.Y. Docket No. 17-CR-612 (PKC)
Former Hedge Fund Manager Sentenced to 60 Months’ Imprisonment and Ordered to Pay $14.4 Million in Forfeiture for Role in International Securities Fraud and Computer Hacking SchemeRead the Press Release
Vitaly Korchevsky, a former hedge fund manager, was sentenced in federal court in Brooklyn today by United States District Judge Raymond J. Dearie to 60 months’ imprisonment for conspiracy to commit wire fraud, conspiracy to commit securities fraud and computer intrusion, conspiracy to commit money laundering and two counts of securities fraud. The Court also ordered Korchevsky to pay $14.4 million in forfeiture and a $250,000 fine. Co-defendant Vladislay Khalupsky, a securities trader, was convicted of the same charges, and was sentenced on January 11, 2019 to 48 months’ imprisonment.
Following a four-week jury trial, Korchevsky and Khalupsky were convicted in July 2018 for their roles in an international scheme to hack into three newswire services and steal press releases containing non-public financial information prior to their publication. The defendants and their co-conspirators then used this information to make trades generating approximately $30 million in illegal profits
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 David E. Beach, Special Agent-in-Charge, United States Secret Service, New York Field Office (USSS), announced the sentences.
“Korchevsky and Khalupsky will now pay the price for using their experience as traders to generate millions of dollars in unlawful trades based on hacked information,” stated United States Attorney Donoghue. “Today’s sentence sends a powerful message that, no matter how sophisticated or novel the scheme, cybercriminals and traders who steal information from U.S. companies and undermine the integrity of our financial markets will be held accountable for their actions.” Mr. Donoghue expressed his grateful appreciation to the United States Attorney’s Office for the District of New Jersey (USAO-DNJ), the Department of Homeland Security (DHS) and the U.S. Securities and Exchange Commission (SEC) for their significant cooperation and assistance in this case.
“The Secret Service remains committed to aggressively investigating and pursuing those responsible for cyber-enabled financial crimes,” stated USSS Special Agent-in-Charge Beach. “The sentence today is testament to the Secret Service’s commitment to building strong partnerships between local, state and federal law enforcement and represents a win against those who chose to threaten the financial infrastructure of the United States.”
Between February 2010 and August 2015, computer hackers based in the Ukraine gained unauthorized access into the computer networks of Marketwired L.P., PR Newswire Association LLC and Business Wire, through a series of sophisticated cyberattacks. The hackers moved through the computer networks and stole press releases about upcoming announcements by public companies concerning earnings, revenues and other material non-public information.
In order to monetize that information, the hackers shared the stolen press releases with a network of traders, including Korchevsky and Khalupsky, through overseas computer servers controlled by the hackers, and/or through secure email accounts. Korchevsky and Khalupsky then generally traded ahead of the public distribution of the stolen releases, executing trades in extremely short windows of time, usually shortly after the close of the markets. As a result, the trading data often showed a flurry of trading activity around a stolen press release just prior to its public release. Korchevsky, Khalupsky and their co-conspirators traded on stolen press releases concerning hundreds of publicly traded companies.
The illegal trading by the criminal network resulted in gains of more than $30 million, much of which was routed back to the hackers. Korchevsky traded on the stolen press releases both in brokerage accounts that benefitted the criminal network, as well as in his personal brokerage accounts, and ultimately netted approximately $15 million in profits over the course of the scheme. Khalupsky primarily traded in accounts that benefited the criminal network, and received a percentage of the multi-million dollars in profits he generated by trading on the stolen press releases. He directed that payments received for the illegal profits he generated for the criminal network be made to offshore shell companies.
The charges against Korchevsky and Khalupsky were set forth in an indictment unsealed in August 2015 in connection with a broader investigation conducted by this Office, the USAO-DNJ, the FBI, the USSS and the DHS, as well as a parallel investigation by the SEC. In total, nine defendants were charged criminally for their roles in the scheme. All have either pleaded guilty or been convicted at trial, except for three defendants who remain at large.
The government’s case is being handled by the Office’s Business and Securities Fraud Section and National Security and Cybercrime Section. Assistant United States Attorneys Richard M. Tucker, Julia Nestor and David Gopstein are in charge of the prosecution. Assistant United States Attorney Tanisha Payne is in charge of forfeiture aspect of the case.
The Defendants:
VITALY KORCHEVSKY
Age: 53
Glen Mills, PennsylvaniaVLADISLAV KHALUPSKY
Age: 48
Brooklyn, New York and Odessa, UkraineE.D.N.Y. Docket No. 15 CR 381 (RJD)
Brooklyn Attorney Convicted of Conspiracy to Obstruct A Federal ProceedingRead the Press Release
Lydia Hills, an attorney admitted to practice in the state of New York since 2011, was convicted today by a federal jury in Brooklyn of obstructing an official proceeding, and conspiring to do the same. Specifically, Hills attempted to influence the U.S. Attorney’s Office for the Southern District of New York (USAO-SDNY) to remove a lien on her client’s real properties by misrepresenting that the properties would be sold and that the client would not receive any proceeds from the sale. The verdict followed a three-day trial before United States District Judge I. Leo Glasser. When sentenced, Hills faces up to 20 years’ imprisonment on each count of the indictment.
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.
“As proved at trial, Hills violated her oath as an attorney by participating in a corrupt scheme to impede the collection of forfeiture and restitution owed to the government by her client,” stated United States Attorney Donoghue. “Today’s verdict holds her responsible for attempting to undermine the laws she was sworn to uphold, and serves as a message to others that this Office will not tolerate such conduct.”
“When the government imposes a restitution and forfeiture agreement in response to a crime that’s been committed, the best course of action is to pay up. In this case, Lydia Hills masterminded a scheme so her client could skirt the system. At one point, Hills expressed concerns about the deal that was about to go down. As evidenced by today’s conviction, she had every reason to fear the inevitable outcome,” stated FBI Assistant Director-in-Charge Sweeney.
Hills’ client was convicted in 2010 in federal court in the SDNY of conspiracy to commit wire fraud and bank fraud. The client was sentenced to 70 months’ imprisonment and ordered to pay more than $4.9 million in restitution (the Judgment) and more than $13.5 million in forfeiture (the Forfeiture Order). The USAO-SDNY filed a lien against four properties in Queens, New York, to prevent Hill’s client from selling the properties without first satisfying the Judgment and Forfeiture Order.
Hills, who was also a licensed as a real estate broker, subsequently represented the client in a mortgage “short sale” of the properties. In a short sale, the mortgage holder can pay off the mortgage with the proceeds of the short sale, but the mortgager does not receive any of the proceeds. During March and April 2016, Hills conspired with her client to sell the four properties in a transaction where the client would receive the sales proceeds in a hidden cash transaction and conceal it from the USAO-SDNY, which was entitled to the proceeds to partially satisfy the Judgment and Forfeiture Order. On March 15, 2016, Hills faxed a letter to the USAO-SDNY requesting that the lien be released in order to proceed with the sale, falsely representing that the client would not receive any financial benefit from the short sale. However, on April 6, 2016, Hills, the client and the buyer met at the closing, and the buyer gave Hills a bag containing $33,100 in cash, representing $25,000 for one property and Hills’ broker fee of $8,100. At the closing, which was recorded by FBI agents, Hills told the buyer with regard to her client, “I’m afraid. I’m an attorney… I don’t want her to say something… The wrong thing on the phone one day and it’s being recorded and I’m screwed.”
The government’s case is being handled by the Office’s Public Integrity Section. Assistant United States Attorneys Martin E. Coffey and Alexander Mindlin are in charge of the prosecution.
The Defendant:
LYDIA HILLS
Age: 38
Brooklyn, New YorkE.D.N.Y. Docket No. 16-cr-204 (ILG)
Staten Island Attorney Pleads Guilty to Fraud and Extortion SchemeRead the Press Release
Earlier today in federal court in Brooklyn, Richard Luthmann, a Staten Island attorney, pleaded guilty to wire fraud conspiracy and extortion conspiracy before United States Magistrate Judge Ramon E. Reyes, Jr. As part of his guilty plea, Luthmann stipulated that he obstructed justice following his arrest, by sending a threatening letter to a potential witness whom he believed was cooperating with the government and violating a court order regarding discovery materials.
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 Carson, Special Agent-in-Charge, U.S. Department of Commerce, Bureau of Industry and Security, Office of Export Enforcement, New York Field Office (Commerce), announced the guilty plea.
Beginning in summer 2015, Luthmann, co-defendant George Padula and the victim participated in a scheme in which they contracted with overseas companies to sell and ship them containers of valuable scrap metal, but instead packed the containers with cheap filler material, such as concrete blocks. As part of the scheme, Luthmann registered shell companies, including Omni Metal Corporation, with the New York Department of State and recruited a client of his law practice to be the nominal president of Omni. At the direction of Luthmann and Padula, the client opened bank accounts to facilitate the fraud, and between October 2015 and December 2015, the over-seas companies wired over $500,000 to those accounts. That money was then transferred into accounts controlled by Luthmann or a co-conspirator.
On December 5, 2016, Luthmann lured the victim to his law office, ostensibly to sign some paperwork. Once there, Padula and co-defendant Michael Beck blocked the victim from leaving. Beck then pulled out a firearm, aimed it at the victim’s head and knee, and claimed the victim owed him $10,000 because Beck had purchased a $7,000 debt that the victim owed Padula, plus a $3,000 “vig,” or interest payment, that Beck had added. The victim was then permitted to leave, but not before being warned by Padula not to contact the police.
When sentenced, Luthmann faces a maximum sentence of 20 years’ imprisonment on each count.
Padula and Beck have previously pleaded guilty, respectively, to wire fraud conspiracy (Padula), kidnapping conspiracy (Beck), extortion conspiracy and use of a firearm in connection with a crime of violence (Padula and Beck).
The government’s case is being handled by the Office’s Organized Crime and Gangs Section. Assistant United Attorneys Moira Kim Penza and James P. McDonald are in charge of the prosecution.
The Defendants
RICHARD LUTHMANN
Age: 39
Staten Island, New YorkGEORGE PADULA III
Age: 30
Staten Island, New YorkMICHAEL BECK
Age: 60
Staten Island, New YorkE.D.N.Y. Docket No. 17-CR-664 (JBW)
City of New York to Comply with the Federal Safe Drinking Water Act and Prevent Contamination of the City’s Drinking Water SupplyRead the Press Release
The Department of Justice and the U.S. Environmental Protection Agency (EPA) announced today that the United States filed suit under the federal Safe Drinking Water Act against the city of New York and the New York City Department of Environmental Protection for their longstanding failure to cover the Hillview Reservoir located in Yonkers, New York. A consent decree requiring the City to make improvements and cover the Reservoir at an estimated cost of $2.975 billion and to pay a $1 million civil penalty was also lodged with the Court. The State of New York will be a co-plaintiff and is a party to the consent decree.
“Today we take the necessary steps to fix a serious public-health problem,” said Assistant Attorney General Jeffrey Bossert Clark for the Department of Justice’s Environment and Natural Resources Division. “Congress enacted the Safe Drinking Water Act to ensure that every American has access to safe water to drink. And we vindicate that Act by ensuring in our enforcement action that the City of New York will comply with this federal law by protecting against contaminants aerially deposited into the Hillview Reservoir, which millions of New Yorkers depend for their everyday drinking water needs.”
“The United States brought this action to ensure that New York City covers the Hillview Reservoir to protect the drinking water City residents receive from the Catskill-Delaware Drinking Water Supply. This Office will continue to monitor and enforce the Consent Decree through completion of its requirements,” said United States Attorney Richard P. Donoghue for the Eastern District of New York.
“New York City failed to comply with Safe Drinking Water Act requirements that keep drinking water safe from harmful bacteria and viruses, even when it was under an order to do so,” said EPA Administrator Andrew Wheeler. “EPA will ensure the City complies with the decree and takes the necessary steps to prevent its drinking water from harming the health of its residents.”
The Reservoir is part of New York City’s public water system, which delivers up to a billion gallons of water a day. The Reservoir is an open storage facility and is the last stop for drinking water before it enters the City’s water tunnels for distribution to city residents. The 90-acre reservoir is divided into two segments, the East and West Basins. Prior to the water entering the Reservoir, it receives a first treatment of chlorine and ultraviolet treatment. Since the Reservoir is an open storage facility, the treated water in the Reservoir is subject to recontamination with microbial pathogens from birds, animals, and other sources, such as viruses, Giardia, and Cryptosporidium. Giardia and Cryptosporidium are protozoa that can cause potentially fatal gastrointestinal illness in humans.
The City has been required to cover the Reservoir since it first executed an administrative order with the State of New York on March 1, 1996. Under the Safe Drinking Water Act and its regulations, the City also became obligated, as of March 6, 2006, to cover the Reservoir by April 1, 2009. In May 2010, EPA entered into an administrative order with the City requiring the City to meet a series of milestones to cover the Reservoir. The first milestone was Jan. 31, 2017. When the City failed to meet that date, this lawsuit followed.
The consent decree requires construction of two projects in addition to the cover, the Kensico Eastview Connection (KEC) and the Hillview Reservoir Improvements (HRI). The KEC entails the construction of a new underground aqueduct segment between the upstream Kensico Reservoir and Eastview ultraviolet treatment facility. The HRI requires extensive repairs to the Hillview Reservoir, including replacing the sluice gates that control water flow and building a new connection between the reservoir and water distribution tunnels. The completion of the KEC is expected to take until 2035. The City estimates the construction cost of the KEC to be approximately $1 billion. The HRI project will be conducted concurrently with the KEC and is anticipated to be completed by 2033. The City estimates the construction cost of the HRI to be approximately $375 million. Following the completion of the KEC and the HRI, the East Basin cover will be constructed, with expected commencement of full operation in 2042, and then the West Basin cover will be constructed, with expected commencement of full operation in 2049. The City’s estimate in 2009 for the cost of its then planned concrete cover for the 90-acre Reservoir was $1.6 billion.
Until the cover is in operation, the consent decree also requires the City to implement Interim Measures to help protect the water, including enhanced wildlife management at the Reservoir and Reservoir monitoring.
In addition, under the consent decree, the City will pay the United States a civil penalty of $1 million for its past violations of federal requirements. The consent decree also provides that the City will pay New York State $50,000, and implement a state Water Quality Benefit Project in the amount of $200,000, to settle the State’s claim for penalties for violations of a state administrative order.
The proposed settlement which is subject to a 30-day public comment period is available at: https://www.justice.gov/enrd/consent-decrees.
The civil negotiations and settlement were handled by the U.S. Attorney’s Office’s Civil Division and the U.S. Department of Justice’s Environment and Natural Resources Division. Negotiations were conducted by Assistant United States Attorney Deborah B. Zwany, working with Elizabeth Yu of the Environment and Natural Resources Division; Phyllis Kaplan Feinmark, Regional Counsel’s Office, EPA Region 2; Doughlas McKenna, Chief of the Water Compliance Branch, EPA Region 2; Nicole Foley Kraft, Chief of the Ground Water Compliance Section, EPA Region 2; Morgan Rog of the EPA Office of Enforcement and Compliance Assurance; Gavin McCabe from the New York State Attorney General’s Office; and Roger Sokol from the New York State Department of Health’s Bureau of Water Supply Protection.
City of New York Agrees to Settle Federal Complaint by Covering the Hillview Reservoir to Prevent Contamination of the City’s Drinking Water SupplyRead the Press Release
Richard P. Donoghue, United States Attorney for the Eastern District of New York, Jeffrey Bossert Clark, Assistant Attorney General for the Environmental and Natural Resources Division of the United States Department of Justice, and Andrew Wheeler, Administrator of the United States Environmental Protection Agency (EPA), announced today that the United States filed suit under the Safe Drinking Water Act against the City of New York and the New York City Department of Environmental Protection (the City) for failure to cover the Hillview Reservoir (the Reservoir), located in Yonkers, New York, in violation of federal regulation and federal and state administrative orders. A Consent Decree requiring the City to cover the Reservoir and pay a civil penalty was also lodged with the Court. Following a 30-day public comment period, the United States will review the comments and, if appropriate, move for entry of the Consent Decree by the Court.
“The United States brought this action to ensure that New York City covers the Hillview Reservoir to protect the drinking water City residents receive from the Catskill-Delaware Drinking Water Supply. This Office will continue to monitor and enforce the Consent Decree through completion of its requirements,” said United States Attorney Richard P. Donoghue.
“Today we take the necessary steps to fix a serious public-health problem,” said Assistant Attorney General Jeffrey Bossert Clark for the Department of Justice’s Environment and Natural Resources Division. “Congress enacted the Safe Drinking Water Act to ensure that every American has access to safe water to drink. And we vindicate that Act by ensuring in our enforcement action that the City of New York will comply this federal law by protecting against contaminants aerially deposited into the Hillview Reservoir, which millions of New Yorkers depend for their everyday drinking water needs.”
“New York City failed to comply with Safe Drinking Water Act requirements that keep drinking water safe from harmful bacteria and viruses, even when it was under an order to do so,” said EPA Administrator Wheeler. “EPA will ensure the City complies with the decree and takes the necessary steps to prevent its drinking water from harming the health of its residents.”
The Reservoir is part of New York City’s public water system. It is an open storage facility and is the last stop for drinking water before it enters the City Water Tunnels for distribution to City residents. The 90-acre Reservoir receives nearly a billion gallons of water each day through the Catskill and Delaware Aqueducts, and serves as a holding tank that allows the City to meet daily peak water demand. It is divided into two segments, the East and West Basins. Prior to the water entering the Reservoir, it receives a first treatment of chlorine and ultraviolet treatment. Since the Reservoir is downstream of these treatments and is an open storage facility, the finished water[1] in the Reservoir is subject to recontamination with microbial pathogens, such as viruses, Giardia and Cryptosporidium, from birds, animals and other sources. Giardia and Cryptosporidium are protozoa that can cause potentially fatal gastrointestinal illness in humans. If the water in the Reservoir were to be re-contaminated, public health would be threatened, since sufficient microbial treatment is not available downstream of the Reservoir. A cover is necessary to prevent recontamination by such pathogens. Until the cover is in operation, the City is required to take active measures to control wildlife in and around the Reservoir and monitor the Reservoir to ensure that the water is safe for drinking.
The City has been required to cover the Reservoir since it first executed an Administrative Order with the State of New York on January 26, 1999. On March 6, 2006, the City also became obligated to cover the Reservoir under federal regulation, specifically the Safe Drinking Water Act. The regulation required uncovered finished water storage facilities, such as the Reservoir, to be covered by April 1, 2009, or for the discharge from the uncovered finished water storage facilities to be treated to achieve inactivation and/or removal of microbial contaminants. In May 2010, EPA entered into an Administrative Order requiring the City to meet a series of milestones leading to the completion of a cover for the Reservoir. The first milestone date was January 31, 2017. The City failed to meet that date, and this lawsuit followed.
The Consent Decree contains requirements for construction of two projects in addition to the cover, the Kensico Eastview Connection (KEC) and the Hillview Reservoir Improvements (HRI). The KEC entails the construction of a new underground aqueduct segment between Kensico and Eastview that replaces the previously planned Catskill Aqueduct Pressurization Project. The HRI requires extensive repairs to the Hillview Reservoir, including replacing the sluice gates that control water flow and building a new connection between the reservoir and water distribution tunnels. The completion of the KEC is expected to take until 2035. The City estimates the construction cost of the KEC to be approximately $1 billion. The HRI project will be conducted concurrently with the KEC and is anticipated to be completed by 2033. The City estimates the construction cost of the HRI to be approximately $375 million. While the KEC and HRI construction and repair work are underway, the City will conduct facilities planning and design work for the Hillview cover. Following the completion of the KEC and the HRI, the East Basin cover will be constructed, with expected commencement of full operation in 2042, and then the West Basin cover will be constructed, with expected commencement of full operation in 2049. The City’s estimate in 2009 for the cost of its then planned concrete cover for the 90-acre Reservoir was $1.6 billion. The actual cost of the cover may be lower, should the City choose a different type of cover.
Because the schedule in the Consent Decree is lengthy, and there is a possibility that the schedule could be accelerated under certain circumstances, the Consent Decree provides for potential acceleration. The Consent Decree also requires the City to implement Interim Measures to protect the water until the Hillview Reservoir cover is in full operation including: (1) enhanced wildlife management at the Reservoir; (2) weekly sampling of source water for Cryptosporidium and Giardia at the Kensico Reservoir effluent(s), and Cryptosporidium and Giardia sampling at the Reservoir effluent; (3) quality control sampling of the Reservoir effluent; and (4) implementation of a Cryptosporidium and Giardia Action Plan for response procedures for elevated Cryptosporidium and Giardia at the Reservoir.
In addition, under the Consent Decree, the City will pay the United States a civil penalty of $1 million for its past violations of federal requirements. The Consent Decree also provides that the City will pay New York State $50,000, and implement a state Water Quality Benefit Project in the amount of $200,000 to settle the State’s claim for penalties for violations of a State administrative order.
The civil negotiations and settlement were handled by the Office’s Civil Division. Assistant United States Attorney Deborah B. Zwany is in charge of this matter, working together with Elizabeth Yu, U.S. Department of Justice, Environment and Natural Resources Division, Phyllis Kaplan Feinmark, Regional Counsel’s Office, EPA Region 2, Doughlas McKenna, Chief of the Water Compliance Branch, EPA Region 2 and Nicole Kraft, Chief of the Ground Water Compliance Section, EPA Region 2, Gavin McCabe from the New York State Attorney General’s Office, and Roger Sokol from the New York State Department of Health’s Bureau of Water Supply Protection.
[1] Finished water is water that has been introduced into the distribution system of a public water system and is intended for distribution and consumption without further treatment, except as necessary to maintain water quality in the distribution system.
Long Island Chiropractor Pleads Guilty to Multi-Million Dollar Health Care FraudRead the Press Release
Earlier today, at the federal courthouse in Central Islip, Raymond R. Pellegrino, a chiropractor, pleaded guilty to health care fraud. Today’s plea took place before United States District Judge Joseph F. Bianco. When sentenced, Pellegrino faces up to 10 years in prison, as well as restitution of $2,110,000, forfeiture of $504,444 and a fine to be determined.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, announced the guilty plea.
“Pellegrino abused his position of trust as a health care provider by billing millions of dollars in fraudulent claims for services that doctors never provided,” stated United States Attorney Donoghue. “Today’s guilty plea sends the message that those who engage in such criminal conduct will be prosecuted to the fullest extent of the law.” Mr. Donoghue expressed his grateful appreciation to the Federal Bureau of Investigation and the New York State Department of Financial Services for its assistance in the case.
Pellegrino operated chiropractic offices in West Hempstead and Hicksville, New York. He hired medical doctors for part-time work and then billed Anthem Empire Blue Cross Blue Shield under the taxpayer identification numbers of those doctors for osteopathic manipulation and other services purportedly provided to beneficiaries. Between December 2013 and September 2014, Pellegrino was paid over $2 million for fraudulent claims filed with Anthem Blue Cross/Blue Shield, billing for medical services that he knew the doctors had not provided.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorneys Charles P. Kelly and Madeline O’Connor are in charge of the prosecution.
The Defendant:
RAYMOND R. PELLEGRINO
Age: 50
McKinney, TexasE.D.N.Y. Docket No. 18-CR-496 (JFB)
Latin King Gang Member Pleads Guilty to the 2005 Murder of C.W. Post Student-Basketball StarRead the Press Release
Earlier today, in federal court in Central Islip, Jamie Rivera, a member of the Almighty Latin King and Queen Nation street gang, pleaded guilty to the 2005 murder of C.W. Post student and basketball star, Tafare Berryman. The guilty plea was entered before United States Magistrate Judge Anne Y. Shields.
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), Ray Donovan, Special Agent-in-Charge, Drug Enforcement Administration, New York Division (DEA), and Patrick J. Ryder, Commissioner, Nassau County Police Department (NCPD), announced the guilty plea.
“Nearly fourteen years ago, an innocent young man lost his life to senseless gang violence. Like his family, we do not forget,” stated United States Attorney Donoghue. “This case demonstrates our relentless pursuit of justice for the victims of gang violence and our determination to hold gang members accountable.” Mr. Donoghue expressed his grateful appreciation to the FBI, DEA and NCPD for their outstanding work on the case.
According to court filings and the facts presented at the plea proceeding, on April 2, 2005, Rivera and other Latin King gang members were present at La Mansion bar and nightclub, located on Long Beach Road in North Long Beach. Also present were several C.W. Post students, including Tafare Berryman and some of his friends. At least one altercation occurred in the club between gang members and a Post student, and later continued outside in the parking lot.
Berryman and a friend left the club and while walking to their car, the friend was hit in the head with a bottle, causing a laceration. The two entered a car and drove away. Shortly thereafter, Berryman’s friend pulled the car to the side of the road to tend to the bleeding cut on his head. Rivera then drove up alongside and fatally shot Berryman once, believing that Berryman and his friend had been involved in the prior altercation in the parking lot.
When sentenced, Rivera faces a maximum term of life.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorneys Lara Treinis Gatz and Mark E. Misorek are in charge of the prosecution.
The Defendant:
Jaime Rivera
Age: 32
Freeport, New YorkE.D.N.Y. Docket No. 17-50 (SJF) (SIL)
Gambino Crime Family Associate Charged in Murder and Robbery of Brooklyn ManRead the Press Release
An indictment was unsealed today in federal court in Brooklyn charging Anthony Pandrella, an alleged longtime associate of the Gambino organized crime family, with the Hobbs Act robbery and murder of 78-year-old Vincent Zito. The indictment was returned under seal by a federal grand jury on March 7, 2019. Pandrella was arrested last night and is scheduled to be arraigned this afternoon before United States Magistrate Judge Ramon E. Reyes, Jr.
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 charges.
According to the indictment and detention letter, on October 26, 2018, Pandrella met with Zito, a friend of many years, in Zito’s home. While there, he shot Zito in the back of the head at close range, and stole the assets of Zito’s loan business. Pandrella then cleaned up evidence that might link him to the murder. Later that day, Pandrella returned to Zito’s home and met with his family, friends and relatives and tried to learn the status of law enforcement’s investigation. Pandrella was captured on security camera footage coming to and going from Zito’s residence at the time of the robbery and murder. Additionally, Pandrella’s DNA was recovered from the trigger of the murder weapon.
“As charged in the indictment, Pandrella executed a 78-year-old man in his own home so he could steal from him” stated United States Attorney Donoghue. “With today’s arrest, he will now face justice for these brutal crimes.” Mr. Donoghue extended his grateful appreciation to the Brooklyn District Attorney’s Office for its assistance during the investigation.
“An associate of the Gambino crime family allegedly shoots his friend in the back of the head, returns to the home to visit with the family and then thinks he can dispose of the evidence of the crime,” stated FBI Assistant Director-in-Charge Sweeney. “It takes a certain type of evil to murder a friend in their own home, and then console the grieving relatives. The FBI Joint Organized Crime Task Force hasn’t stopped pursuing members and associates of these crime families and bringing them to justice for their disregard of the law and human life.”
“Stamping out organized crime and the violence that is associated with it remains a priority of the NYPD and its partners in law enforcement,” stated NYPD Commissioner O’Neill. “I want to thank our colleagues at the Eastern District, the FBI, the Brooklyn District Attorney’s office, and the investigators involved in the case for bringing this individual to justice and for their unceasing efforts to combat organized crime and violence.”
The charges in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty. If convicted, Pandrella faces up to life imprisonment and is eligible for the death penalty.
The government’s case is being prosecuted by the Office’s Organized Crime and Gang Section. Assistant United States Attorney M. Kristin Mace is in charge of the prosecution.
The Defendant:
Anthony Pandrella
Age: 59
Brooklyn, New YorkE.D.N.Y. Docket No. 19-CR-122 (MKB)
Construction Company Executive Indicted for Defrauding New York City School Construction AuthorityRead the Press Release
A 22-count indictment was unsealed today in federal court in Brooklyn charging Rakesh Kumar, the President of Orba Construction Company (“Orba”), with conspiracy to commit mail and wire fraud, and 21 counts of mail fraud and wire fraud. The charges stem from Kumar’s alleged misrepresentations to the New York City School Construction Authority (“SCA”) regarding the number of hours worked and wages paid by Orba to employees on New York City public school construction projects. Kumar was arrested today and is scheduled to be arraigned this afternoon before United States Magistrate Judge Ramon E. Reyes, Jr.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, Margaret Garnett, Commissioner, New York City Department of Investigation, and Michael Mikulka, Special Agent-in-Charge, U.S. Department of Labor, Office of Inspector General, announced the charges.
As alleged in the indictment, between 2014 and 2018, Kumar submitted false certified payrolls to the SCA for work performed by Orba employees on SCA-funded projects. These payroll forms falsely stated that Orba had paid its employees the prevailing wage, as required by the New York State labor law and labor agreements with the SCA, when in fact the employees had been paid far less, often in cash or by checks issued by a related company owned by Kumar.
“As alleged, through his actions, Kumar cheated laborers, who toiled many long days at manual labor, out of their honest and hard-earned wages,” stated United States Attorney Donoghue. “This Office and our law enforcement partners will vigorously pursue employers who illegally enrich themselves at the expense of their workers.”
“An important mission of the Office of Inspector General is to investigate allegations of fraud related to union members’ wages and benefits,” stated DOL OIG Special Agent-in-Charge Mikulka. “We will continue to work with our law enforcement partners to investigate these types of allegations.”
“Theft of wages has far-reaching effects – stripping hard-working employees of their rightful pay, jeopardizing the financial security of all those who rely on the wage-earner’s income, and creating unfair advantages over companies that do right by their workers,” stated DOI Commissioner Garnett. “In this case, Orba Construction Corporation for five years siphoned workers’ pay through underreporting hours on doctored payroll reports, according to the charges. DOI will continue working with its partners like the U.S. Attorney for the Eastern District of New York to investigate bad actors who steal their employees’ wages.”
The charges in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty.
If convicted, Kumar faces up to 20 years’ imprisonment for each of the mail and wire fraud charges.
The government’s case is being prosecuted by the Office’s Public Integrity Section. Assistant United States Attorney Martin E. Coffey is in charge of the prosecution.
The Defendant
RAKESH KUMAR (also known as “Rikki”)
Age: 64
Basking Ridge, New JerseyE.D.N.Y. Docket No. 19-CR-101 (DLI)
Former Chief Operating Officer of Long Island Federal Credit Union Pleads Guilty to EmbezzlementRead the Press Release
Earlier today, at the federal courthouse in Central Islip, Suzanne Silva, the former Chief Operating Officer of Winthrop University Hospital Employees Federal Credit Union (Winthrop University HEFCU), pleaded guilty to embezzling $465,172 during her employment at the credit union. Today’s plea took place before United States District Judge Denis R. Hurley. When sentenced, Silva faces up to 30 years in prison, as well as restitution of $465,172 and a fine of up to $1 million.
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.
“Silva has admitted that she abused her authority as Chief Operating Officer by stealing funds from the Credit Union for personal travel and shopping sprees,” stated United States Attorney Donoghue. “Today’s guilty plea sends the message that those who engage in such criminal conduct will be caught and prosecuted.”
Between March 2011 and June 2018, Silva used her authority at Winthrop University HEFCU to transfer hundreds of thousands of dollars from operating accounts of the credit union to accounts in her name and the names of family members. She used the funds to take Caribbean cruises, travel to Cancun and pay thousands of dollars a month for purchases from the Amazon and Etsy websites. Silva’s employment was terminated by Winthrop University HEFCU in June 2018.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorneys Charles P. Kelly and Madeline O’Connor are in charge of the prosecution.
The Defendant:
Suzanne Silva
Age: 35
Carle Place, New YorkE.D.N.Y. Docket No. 18-CR-507 (DRH)