Eastern District of New York
Press releases recorded for this federal judicial district.
Former Nassau County Executive Edward Mangano and His Wife Linda Mangano Convicted of Corruption and Related Charges by a Federal JuryRead the Press Release
Earlier today, following a seven-week trial, a federal jury in Central Islip, New York, returned guilty verdicts against former Nassau County Executive Edward Mangano on multiple counts of accepting bribes and kickbacks in exchange for official government action, and for conspiracy to obstruct justice. Linda Mangano, the wife of Edward Mangano, was also convicted of conspiracy to obstruct justice, obstruction of justice and making false statements to Federal Bureau of Investigation (FBI) agents in connection with her employment by Long Island restaurateur Harendra Singh.
When they are sentenced by United States District Judge Joan M. Azrack, Edward Mangano faces up to 20 years’ imprisonment on honest services wire fraud charges and conspiracy to commit honest services wire fraud, up to 10 years’ imprisonment for federal program bribery, and up to five years’ imprisonment for conspiracy to commit federal program bribery. Edward Mangano and Linda Mangano each face up to 20 years’ imprisonment for each obstruction of justice charge, and up to five years’ imprisonment for each false statement charge.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, William F. Sweeney, Jr., Assistant Director-in-Charge, FBI, New York Field Office, and Jonathan D. Larsen, Acting Special Agent-in-Charge, Internal Revenue Service, Criminal Investigation, New York (IRS-CI), announced the verdict.
“As found by the jury, Edward Mangano abused his power as a public official by taking bribes and kickbacks from a businessman in exchange for helping him obtain loans worth millions of taxpayer dollars,” stated U.S. Attorney Donoghue. “Among the personal benefits received was a lucrative no-show job for Linda Mangano. The defendants tried and failed to cover up their crimes by lying to the FBI and federal prosecutors, and will now be held responsible for these crimes. No one is above the law. The Eastern District and the FBI will be relentless in our efforts to root out corruption at all levels of government in New York.”
“In a quid-pro-quo wheeling and dealing, Edward Mangano effectively opened the door that unjustly benefitted restaurateur Harendra Singh, sat idly by while public funds were exchanged for favors, and waited patiently in the wings to accept a payout for the plan he put in motion,” stated FBI Assistant Director-in-Charge Sweeney. “In Linda Mangano’s case, she kept up the ruse with a bogus job as food taster and menu planner at one of Singh’s restaurants. Whether they believe it or not, today we’ve proven they bit off more than they could chew.”
“Serving the public is an honor, especially when that position is the result of being elected by the people,” stated IRS-Criminal Investigation Acting Special Agent-in-Charge Larsen. “Mr. Mangano abused his elected office and the trust of his constituents. Our agents from IRS-CI diligently utilized their investigative expertise to prove these complex financial transactions.”
The evidence at trial established that between January 2010 and February 2015, Edward Mangano engaged in schemes to solicit and receive bribes and kickbacks from Singh. In return for the cash and personal benefits he received, Mangano, who served as Nassau County Executive from January 2010 to December 2017, performed official actions to benefit Singh in connection with his businesses.
The TOB Loan Scheme
Several weeks after Edward Mangano took office as Nassau County Executive in January 2010, he urged the TOB Supervisor to help Singh obtain financing in order to make required capital improvements at TOBAY Beach and The Woodlands at the TOB golf course, by authorizing the TOB to indirectly guarantee four bank loans totaling approximately $20 million. Mangano used his official position to ensure that the TOB backed the loans. In April 2010, Singh hired Linda Mangano for a sham job as the purported Director of Marketing for Singh’s businesses. On June 8, 2010, the TOB board voted to authorize the town to back Singh’s personal loans for the beach and the golf course. Singh paid for five vacations, hardwood flooring, a custom-made office chair, a massage chair and a watch for the Manganos, as well as over $450,000 in total for Linda Mangano’s no-show job.
Obstruction of Justice
Edward and Linda Mangano conspired to obstruct a federal grand jury investigation when they schemed with Singh to fabricate examples of work never performed by Linda Mangano’s at the Water’s Edge, in an attempt to thwart a grand jury investigation. On May 20, 2015 and May 22, 2015, Linda Mangano made false statements to the FBI and federal prosecutors about the work she claimed to have performed for Singh.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorneys Catherine M. Mirabile, Lara Treinis Gatz and Christopher Caffarone are in charge of the prosecution. Assistant United States Attorney Madeline O’Connor of the Office’s Civil Division is responsible for the forfeiture of assets.
The Defendants:
EDWARD MANGANO
Age: 56
Bethpage, New YorkLINDA MANGANO
Age: 56
Bethpage, New YorkE.D.N.Y. Docket No. 16-CR-540 (S-2) (JMA)
Three Former Mozambican Government Officials and Five Business Executives Indicted in Alleged $2 Billion Fraud and Money Laundering Scheme That Victimized U.S. InvestorsRead the Press Release
BROOKLYN, NY – An indictment was unsealed on March 4, 2019, charging Najib Allam, an executive of the Privinvest family of maritime services companies, and Teofilo Nhangumele and Antonio do Rosario, former Mozambican government officials, for their roles in a $2 billion fraud and money laundering scheme that victimized investors in the United States and around the world. The indictment was previously unsealed on January 3, 2019 as to co-defendants Jean Boustani, a Privinvest executive, Manuel Chang, the former Finance Minister of Mozambique, and Andrew Pearse, Surjan Singh and Detelina Subeva, former high-ranking investment bankers at an international investment bank (the Investment Bank). Each defendant is charged with wire fraud conspiracy and money laundering conspiracy. In addition, Boustani, Allam, Chang, do Rosario, Pearse, Singh and Subeva are charged with securities fraud conspiracy. Pearse, Singh and Subeva are also charged with conspiracy to violate the anti-bribery and internal controls provisions of the Foreign Corrupt Practices Act (FCPA).
Richard P. Donoghue, United States Attorney for the Eastern District of New York, Brian A. Benczkowski, Assistant Attorney General of the Justice Department’s Criminal Division, and William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the charges.
“As charged in the indictment, the defendants orchestrated an immense fraud and bribery scheme that took advantage of the United States financial system, defrauded its investors and adversely impacted the economy of Mozambique, in order to line their own pockets with hundreds of millions of dollars,” said United States Attorney Donoghue. “This indictment underscores the Department of Justice’s continuing efforts to end such fraudulent and corrupt practices and to hold those responsible to account for their crimes.”
“The indictment unsealed today alleges a brazen international criminal scheme in which corrupt Mozambique government officials, corporate executives, and investment bankers stole approximately $200 million in loan proceeds that were meant to benefit the people of Mozambique,” said Assistant Attorney General Benczkowski. “The Department of Justice and our law enforcement partners are dedicated to using all tools at our disposal to prosecute those who engage in money laundering, financial fraud and corruption at the expense of U.S. investors, wherever those individuals may be located.”
“Today’s indictment proves that no matter who you are, or what position of power you’re in, you’re not immune from prosecution,” stated FBI Assistant Director-in-Charge Sweeney. "The FBI will continue to use all resources at our disposal to uncover crimes of this nature and expose them for what they really are.”
The Fraudulent Scheme
The indictment alleges that between approximately 2013 and 2016, Boustani, Allam, Nhangumele, do Rosario, Chang, Pearse, Singh, Subeva and their co-conspirators ensured that the Investment Bank, and another foreign investment bank, would arrange for more than $2 billion to be extended, in three loans, to companies owned and controlled by the Mozambican government: Proindicus S.A. (Proindicus), Empresa Moçambicana de Atum, S.A. (EMATUM) and Mozambique Asset Management (MAM). The proceeds of the loans were intended to fund three maritime projects for which Privinvest was to provide the equipment and services. Specifically, Proindicus was to perform coastal surveillance, EMATUM was to engage in tuna fishing and MAM was to build and maintain shipyards.
Instead, the defendants and their co-conspirators illegally facilitated Privinvest’s criminal diversion of more than $200 million of the proceeds of the loans. These stolen funds included more than $150 million that Privinvest — at the direction of Boustani, Allam and others — used to bribe Chang, Nhangumele, do Rosario and other Mozambican government officials to ensure that companies owned and controlled by the Mozambican government would enter into the loan arrangements, and that the government of Mozambique would guarantee those loans. In addition, Privinvest diverted approximately $50 million in kickback payments to Pearse, Singh and Subeva, who assisted the co-conspirators to obtain financing for the loans through the Investment Bank and the other foreign investment bank. The loans were subsequently sold in whole or in part to investors worldwide, including in the United States. In doing so, the participants in the scheme conspired to defraud these investors by misrepresenting how the loan proceeds would be used, the amount and maturity dates of other financial obligations held by Mozambique and the ability of the government of Mozambique to repay the loans.
To date, the companies controlled by the government of Mozambique have failed to make more than $700 million of loan repayments that have become due.
The Defendants
Boustani, a citizen and resident of Lebanon and Antigua and Barbuda, was the lead salesperson and negotiator for Privinvest, and is charged for his role in coordinating the payment by Privinvest of more than $200 million in bribe and kickback payments to Mozambican government officials and investment bankers in order to facilitate the three loans. He is alleged to have personally received at least $15 million from the scheme. Boustani was arrested in Queens, New York on January 2, 2019 and arraigned later that day in federal court in Brooklyn. Boustani has pleaded not guilty to the charges, and a trial date has not yet been set.
Allam, a citizen of Lebanon, was the Chief Financial Officer of Privinvest, and is charged for his role in helping Boustani and others coordinate the payment by Privinvest of more than $200 million in bribe and kickback payments. Allam remains at large.
Nhangumele, a citizen and resident of Mozambique, acted in an official capacity on behalf of the President of Mozambique during the charged scheme, and is charged for his role in facilitating the payment by Privinvest of over $150 million to Mozambican government officials to gain approval for the maritime projects, and to cause Mozambique to borrow more than $2 billion from the two investment banks in government-guaranteed loans to finance the projects. Nhangumele has not yet been arrested on the charges in this indictment and Nhangumele is not currently in U.S. custody.
Do Rosario, a citizen and resident of Mozambique, held positions within the Mozambican government, including with the Mozambican state intelligence service, known as “SISE,” and managerial roles for each of the three state-owned entities formed to undertake the maritime projects that are the subject of the indictment. He is charged for his role in ensuring that Mozambique would undertake the maritime projects and award the contracts for those projects to Privinvest, and that Finance Minister Chang would issue government guarantees binding Mozambique to repay $2 billion in loans to undertake the projects. He is alleged to have personally received more than $12 million from the scheme. Do Rosario has not yet been arrested on the charges in this indictment and is not currently in U.S. custody.
Chang, a citizen and resident of Mozambique, was the former Finance Minister of Mozambique, and is charged for signing guarantees on behalf of Mozambique for the three corrupt loans. He is alleged to have personally received at least $5 million from the scheme. Chang was arrested on December 29, 2018, in South Africa, pursuant to a provisional arrest warrant issued at the request of the United States. The United States is seeking his extradition.
Pearse, a citizen of New Zealand, Singh, a citizen of the United Kingdom and Subeva, a citizen of Bulgaria, reside in the United Kingdom. At the time of the charged scheme, Pearse and Singh were managing directors, and Subeva was a vice president, of the Investment Bank. Each has been charged for facilitating bribe payments to government officials in Mozambique and for circumventing the internal accounting controls of the Investment Bank, which arranged two of the three loans. Pearse, Singh and Subeva were arrested on January 3, 2019, in the United Kingdom, pursuant to provisional arrest warrants issued at the request of the United States. The United States is seeking their extradition.
* * * * *
The charges in the indictment are allegations, and the defendants are presumed innocent until proven guilty.
The investigation is being conducted by the FBI’s New York Field Office. The government’s 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 (EDNY), the Criminal Division’s Money Laundering and Asset Recovery Section (MLARS) and the Fraud Section. Assistant United States Attorneys Matthew S. Amatruda and Mark E. Bini of the EDNY, Trial Attorneys Margaret Moeser and Sean W. O’Donnell of MLARS and Trial Attorney David M. Fuhr of the Fraud Section are prosecuting the case.
The Criminal Division’s Office of International Affairs provided critical assistance in this case. The Department appreciates the significant cooperation and assistance provided by the United States Securities and Exchange Commission. The Department also appreciates the assistance provided by law enforcement authorities in the United Kingdom and in South Africa.
The Defendants:
JEAN BOUSTANI
Age: 40
Lebanon, Antigua and BarbudaNAJIB ALLAM
Age: 58
LebanonMANUEL CHANG
Age: 63
MozambiqueANTONIO DO ROSARIO
Age: 44
MozambiqueTEOFILO NHANGUMELE
Age: 50
MozambiqueANDREW PEARSE
Age: 49
United KingdomSURJAN SINGH
Age: 44
United KingdomDETELINA SUBEVA
Age: 37
United KingdomE.D.N.Y. Docket No. 18-CR-681 (WFK)
Queens Man Sentenced to Three Years’ Imprisonment for Bribery and FraudRead the Press Release
Earlier today, at the federal courthouse in Brooklyn, Charles Gallman, also known as “T.A.,” was sentenced by United States District Judge Carol Bagley Amon to three years’ imprisonment for conspiring to violate the Travel Act by bribing a witness to testify falsely in a double-homicide trial in Suffolk County Supreme Court, and for conspiring to make false statements to the Bureau of Prisons (BOP). Gallman pleaded guilty to the charges on November 8, 2018.
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.
“Gallman was the driving force behind brazen criminal conduct designed to undermine our criminal justice system,” stated United States Attorney Donoghue. “Today, the defendant has been held accountable, thanks to the outstanding work of this Office’s prosecutors and our law enforcement partners.” Mr. Donoghue expressed his grateful appreciation to the Offices of the Queens County and Suffolk County District Attorneys for their assistance in the investigation.
The charges in the case stemmed from an investigation led by the Queens County District Attorney’s Office. Court-authorized intercepted communications between Gallman and an attorney revealed the two plotting to bribe a witness, Luis Cherry, to testify falsely in a criminal trial against Reginald Ross in Suffolk County. Ross was ultimately convicted of murdering two men in separate attacks in 2010. The intercepted communications also captured Gallman scheming with three others co-conspirators, including another attorney, to defraud the BOP by submitting a fraudulent letter to help an inmate obtain early release from prison.
The government’s case is being handled by the Office’s Organized Crime and Gangs Section. Assistant United States Attorneys Andrey Spektor and Lindsay K. Gerdes are in charge of the prosecution.
The Defendant:
Charles Gallman (also known as “T.A.”)
Age: 57
Queens, New YorkE.D.N.Y. Docket No. 18-CR-123 (CBA)
Mozambique’s Former Finance Minister Indicted Alongside Other Former Mozambican Officials, Business Executives, and Investment Bankers in Alleged $2 Billion Fraud and Money Laundering Scheme that Victimized U.S. InvestorsRead the Press Release
A four-count indictment was returned on Dec. 19, 2018, by a grand jury in the Eastern District of New York, charging two executives of a shipbuilding company, three former senior Mozambican government officials, and three former London-based investment bankers for their roles in a $2 billion fraud and money laundering scheme that victimized investors from the United States and elsewhere.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Richard P. Donoghue of the Eastern District of New York, and Assistant Director in Charge William F. Sweeney Jr. of the FBI’s New York Field Office made the announcement.
“The indictment unsealed today alleges a brazen international criminal scheme in which corrupt Mozambique government officials, corporate executives, and investment bankers stole approximately $200 million in loan proceeds that were meant to benefit the people of Mozambique,” said Assistant Attorney General Benczkowski. “The Department of Justice and our law enforcement partners are dedicated to using all tools at our disposal to prosecute those who engage in money laundering, financial fraud and corruption at the expense of U.S. investors, wherever those individuals may be located.”
“As charged in the indictment, the defendants orchestrated an immense fraud and bribery scheme that took advantage of the U.S. financial system, defrauded its investors and adversely impacted the economy of Mozambique, in order to line their own pockets with hundreds of millions of dollars,” said U.S. Attorney Donoghue. “This indictment underscores the Department of Justice’s continuing efforts to end such fraudulent and corrupt practices and to hold those responsible to account for their crimes.”
“Today’s indictment proves that no matter who you are, or what position of power you’re in, you’re not immune from prosecution,” said FBI Assistant Director in Charge Sweeney. “The FBI will continue to use all resources at our disposal to uncover crimes of this nature and expose them for what they really are.”
Jean Boustani, 40, a citizen of Lebanon who worked for the Privinvest Group, a United Arab Emirates-based shipbuilding company, was arrested at John F. Kennedy Airport in New York on Jan. 2, 2019 and arraigned later that day in the Eastern District of New York on charges that he conspired with others to commit one count of wire fraud, one count of securities fraud, and one count of money laundering in connection with $200 million in bribe and kickback payments he helped organize relating to three loans totaling more than $2 billion that were marketed and sold to U.S. victim investors. Boustani has pleaded not guilty to the charges; a trial date has not yet been set. Alongside Boustani, Privinvest’s chief financial officer Najib Allam, 58, a citizen of Lebanon, was charged with the same counts. Allam is alleged to have worked with Boustani to make the bribe and kickback payments. Allam is not currently in U.S. custody.
Manuel Chang, 63, the former Mozambican minister of finance who is a citizen and resident of Mozambique, was charged with the same counts as Boustani, namely one count of conspiracy to commit wire fraud, one count of conspiracy to commit securities fraud, and one count of conspiracy to commit money laundering. Chang was arrested at the request of the United States by South African authorities on Dec. 29, 2018. The United States is seeking Chang’s extradition.
Antonio do Rosario, 44, a citizen and resident of Mozambique, was an official with Mozambique’s State Information and Security Service and a director and officer of each of the three Mozambican entities that obtained the maritime loans. Do Rosario was charged with one count of conspiracy to commit wire fraud, one count of conspiracy to commit securities fraud, and one count of conspiracy to commit money laundering in connection with his receipt of bribe payments relating to the loans. Do Rosario is not currently in U.S. custody.
Teofilo Nhangumele, 50, a citizen and resident of Mozambique, acted on behalf of the Office of the President of Mozambique. Nhangumele was charged with one count of conspiracy to commit wire fraud and one count of conspiracy to commit money laundering in connection with his negotiation and receipt of bribe payments relating to the loans. Nhangumele is not currently in U.S. custody.
The three investment bankers, Andrew Pearse, 49; Surjan Singh, 44; and Detelina Subeva, 37, each of whom is a resident of the United Kingdom, were also charged with one count of conspiracy to commit wire fraud, one count of conspiracy to commit securities fraud, and one count of conspiracy to commit money laundering. In addition, each banker was charged with one count of conspiracy to violate the anti-bribery and internal controls provisions of the Foreign Corrupt Practices Act (FCPA) in connection with their roles in facilitating bribe payments to government officials in Mozambique and for circumventing the internal accounting controls of a foreign investment bank that arranged two of the loans. At the time, Pearse and Singh were managing directors of the investment bank, and Subeva was a vice president.
Pearse, Singh and Subeva were arrested on Jan. 3, in the United Kingdom, all pursuant to provisional arrest warrants issued at the request of the United States. The United States is seeking their extradition.
The indictment alleges that between approximately 2013 and 2016, the co-conspirators organized for more than $2 billion in three loans to be arranged by Investment Bank and another foreign bank. The loans were made to companies owned and controlled by the Mozambican government: Proindicus S.A., Empresa Moçambicana de Atum, S.A. (EMATUM) and Mozambique Asset Management (MAM). The money was purportedly to be used to fund three maritime projects for which the shipbuilder, Privinvest, would provide the equipment and services. Proindicus was to perform coastal surveillance, EMATUM was to engage in tuna fishing, and MAM was to build and maintain shipyards. Chang, in his capacity as minister of finance, signed guarantees on behalf of Mozambique for all three fraudulent loans. Singh signed the agreements on behalf of the investment bank for the two loans on which the bank acted as primary arranger. The investment bank subsequently paid the loans directly to Privinvest.
As further alleged in the indictment, the co-conspirators facilitated Privinvest’s criminal diversion of more than $200 million in loan proceeds, including more than $150 million in bribe payments to Chang and other Mozambican government officials that Privinvest paid to ensure that Mozambique would enter into the loan arrangements. In addition to the bribe payments, the alleged fraud also included approximately $50 million in kickback payments to Pearse, Singh, and Subeva, who assisted the conspirators to obtain financing for the loans through their investment bank and a second foreign investment bank. Pearse, Singh, and Subeva, along with the other members of the conspiracy, allegedly subsequently sold the loans to investors worldwide, including in the United States. Moreover, the participants in the scheme allegedly conspired to defraud these investors by misrepresenting how the loan proceeds would be used, the amount and maturity dates of other loans and debt Mozambique was obligated to pay, and the ability of Mozambique or its state-owned entities to repay the loans.
Mozambique and its state-owned entities have thus far allegedly failed to make more than $700 million of repayments that have become due on the loans.
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 is being conducted by the FBI’s New York Field Office. The government’s case is being prosecuted 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 Sean W. O’Donnell and Margaret A. Moeser, Fraud Section Trial Attorney David M. Fuhr, and Assistant U.S. Attorneys Matthew S. Amatruda and Mark E. Bini of the Eastern District of New York are prosecuting the case.
The Criminal Division’s Office of International Affairs provided critical assistance in this case. The Department appreciates the significant cooperation and assistance provided by the Securities and Exchange Commission. The Department also appreciates the assistance provided by law enforcement authorities in the United Kingdom and in South Africa.
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.
Long Island Woman Arrested for Stealing More Than $10 Million in Fraudulent Real Estate Investment SchemeRead the Press Release
An indictment was unsealed today in federal court in Brooklyn charging Grace Kay with wire fraud related to a long-running scheme to solicit funds from real estate investors. Kay was arrested today and is scheduled to be arraigned this afternoon before United States Magistrate Judge James Orenstein.
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.
According to the indictment, between January 1, 2010 and April 15, 2018, Kay and co-conspirators falsely represented to investors that she had inherited real estate in Japan, including three skyscraper buildings, and required funds to pay various fees and taxes in order to sell the properties and return a large profit to the investors. Relying on Kay’s false representations, investors provided Kay with more than $10 million, which she stole for her personal use.
“As alleged in the indictment, Kay devised a real estate scheme built on tall tales to fleece investors out of millions of dollars,” stated United States Attorney Donoghue. “With today’s arrest, this Office begins the process of bringing justice to the victims.”
The charges in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty. If convicted of wire fraud, Kay faces up to 20 years’ imprisonment.
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:
GRACE KAY
Age: 74
Manhasset, New YorkE.D.N.Y. Docket No. 19-CR-113 (DLI)
New York Tax Return Preparer Found Guilty of Tax Crimes in Stolen Identity Refund Fraud SchemeRead the Press Release
A Springfield Gardens, New York, resident was convicted yesterday by a federal jury for conspiring to commit aggravated identity theft and for two counts of aiding and assisting in the preparation of false tax returns, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division.
According to the evidence presented at trial, Afolabi Ajelero, the owner of Mo-Betta Ventures Inc., a tax preparation business located in Springfield Gardens, New York, conspired with others to possess and use without lawful authority one or more means of identification of another person. He also filed false corporate income tax returns for the 2014 and 2015 tax years for his business.
Ajelero was acquitted of wire fraud and aggravated identity theft counts.
Ajelero faces a maximum sentence of five years for the conspiracy conviction and a maximum sentence of three years in prison for each count of aiding or assisting in the preparation of false returns. He also faces a period of supervised release, restitution, forfeiture and monetary penalties.
On Feb. 15, 2019, co-defendant Hakeem Bamgbala pleaded guilty to 18 counts of wire fraud, 22 counts of aggravated identity theft, one count of conspiring to commit aggravated identity theft, and one count of aiding and assisting the filing of a false tax return. On July 31, 2018, co-defendant Michael Campbell pleaded guilty to conspiracy to commit aggravated identity theft. A sentencing date has not been set for Bamgbala and Campbell.
Principal Deputy Assistant Attorney General Zuckerman commended special agents of IRS-Criminal Investigation, who conducted the investigation, and Trial Attorneys Mark McDonald and Eric Powers of the Tax Division, who are prosecuting the case.
Leader of Queens-Based Non-Profit Organization Pleads Guilty for Her Role in Visa Fraud SchemeRead the Press Release
Earlier today in federal court in Brooklyn, Stella Boyadjian, the operator of a non-profit organization called Big Apple Music Awards Foundation Inc. (BAMA), based in Rego Park, New York, pleaded guilty to conspiracy to bring aliens unlawfully into the United States, visa fraud, and aggravated identity theft. The guilty plea was entered before United States Magistrate Judge Sanket J. Bulsara.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, Brian A. Benczkowski, Assistant Attorney General of the Justice Department’s Criminal Division, and Christian J. Schurman, Principal Deputy Assistant Secretary for Diplomatic Security and Director for Diplomatic Security Service, announced the guilty plea.
Between January 2013 and December 2014, Boyadjian and others (the conspirators) engaged in a widespread visa fraud scheme to bring foreign nationals illegally into the United States by fraudulently claiming to the United States Citizenship and Immigration Services (USCIS) that they were members of traditional Armenian performance groups and thus qualified for P-3 visas as “culturally unique” artists or entertainers.
The conspirators solicited foreign nationals and, in exchange for fees up to $10,000, prepared and filed fraudulent P-3 visa applications. In furtherance of the scheme, the conspirators purchased fraudulent documentation to support the applications, including fake dance certificates and staged photo sessions where the foreign nationals wore Armenian dance costumes to make it appear as though they were traditional Armenian musicians, singers and performers. Once successfully in the United States, some recipients of the fraudulently obtained P-3 visas paid additional fees to the conspirators to obtain extensions of their stays in the United States.
When sentenced, Boyadjian faces a maximum of 10 years’ imprisonment for visa fraud, and an additional mandatory consecutive sentence of two years’ imprisonment for aggravated identity theft.
This case is a joint investigation by the Diplomatic Security Service’s Criminal Fraud Investigations and Overseas Criminal Investigations Divisions, with assistance from the U.S. Citizenship and Immigration Services Fraud Detection and National Security Directorate.
The government’s case is being prosecuted by Assistant United States Attorney David Gopstein and Trial Attorney Sasha N. Rutizer of the Criminal Division’s Human Rights and Special Prosecutions Section.
The Defendant:
STELLA BOYADJIAN
Age: 48
Rego Park, New YorkE.D.N.Y. Docket No. 18-CR-57 (MKB)
Long Island Man Pleads Guilty to Threatening to Assault and Murder Two United States SenatorsRead the Press Release
Earlier today, at the federal courthouse in Central Islip, Ronald DeRisi pleaded guilty before United States District Judge Joseph F. Bianco to threatening to assault and murder United States senators in retaliation for their support of the nomination and confirmation of Justice Brett Kavanaugh to the U.S. Supreme Court. When sentenced, DeRisi faces up to 10 years in prison. As part of his plea agreement with the government, DeRisi will forfeit two rifles to the United States.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, and Matthew R. Verderosa, Chief of Police, United States Capitol Police, announced the guilty plea.
“This defendant threatened to assault and murder two sitting United States senators in an effort to intimidate them and interfere with their performance of official duties,” stated United States Attorney Donoghue. “Ours is a system of laws – not threats – and the Department of Justice will vigorously prosecute those who seek to undermine the integrity of our constitutional system through violence.” Mr. Donoghue extended his grateful appreciation to the United States Capitol Police, the Federal Bureau of Investigation and the Suffolk County Police Department for their investigative work and assistance in the case.
“The mission of the United States Capitol Police is to protect the Congress, the U.S. Capitol, and all who work and visit here. I want to thank our investigators for their excellent work as well as our law enforcement partners and Mr. Donoghue and his staff for bringing this investigation and trial to this satisfactory conclusion,” stated U.S. Capitol Police Chief Verderosa.
In September and October of 2018, DeRisi telephoned and left more than 10 threatening voice-messages at the offices of two United States senators in connection with the nomination and confirmation of Justice Kavanaugh to the U.S. Supreme Court. When DeRisi was arrested on October 19, 2018, members of law enforcement recovered the prepaid cellular telephone that had been used to make the threatening calls, as well as live ammunition during the execution of a search warrant.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorney Justina L. Geraci is in charge of the prosecution.
The Defendant:
Ronald DeRisi
Age: 74
Smithtown, New YorkE.D.N.Y. Docket No. 19-CR-090 (JFB)
Long Island Man Sentenced to 19 Years’ Imprisonment for Transporting Child PornographyRead the Press Release
Earlier today, in federal court in Central Islip, Brian Newton was sentenced to 19 years’ of imprisonment by United States District Judge Joseph F. Bianco following the defendant’s guilty plea on May 3, 2018 to transportation of child pornography in interstate and foreign commerce. As part of his sentence, Newton must serve five years’ supervised release following his imprisonment, during which time he must remain registered as a sex offender and not have unsupervised contact with minors.
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.
“Newton, despite being a registered sex offender, again chose to victimize children by sharing images of their abuse with others online, conduct that is deserving of a substantial prison sentence and underscores a message of deterrence to others,” stated United States Attorney Donoghue. “The protection of innocent children is a priority of utmost importance for this Office and our law enforcement partners. We will continue to work tirelessly to ensure that those who victimize children will be arrested and prosecuted to the full extent of the law.” Mr. Donoghue extended his grateful appreciation to the FBI New York Crimes Against Children Task Force for its investigative work and assistance.
“Child pornography is not an abstract crime. It is a direct byproduct of the sexual abuse of innocent children – in this instance, including infants and toddlers,” stated FBI Assistant Director-in-Charge Sweeney. “And though he was already on probation for a prior child pornography conviction, Newton continued and even escalated his depraved actions, sharing child pornography while sexually soliciting minor children online. Today’s sentence provides a measure of justice for Newton’s victims, and protects those he sought to victimize. The FBI’s Human Trafficking and Child Exploitation Task Force and our partners are committed to investigating and prosecuting anyone who seeks to harm children.”
Newton, who at the time of the charged offense was on probation from a conviction in Suffolk County in 2014 for possession of child pornography, was caught trading child pornography including sadistic depictions of the sexual abuse of infants and toddlers. During the execution of a search warrant at his residence, law enforcement seized Newton’s large collection of child pornography, including hundreds of videos and thousands of images. After his arrest, Newton admitted engaging in conversations with minors over internet chat platforms, as well as sending nude images of himself to minors and soliciting nude images from minors.
This prosecution is part of Project Safe Childhood, a nationwide initiative led by the Department of Justice to combat the epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorneys Lara T. Gatz and Michael R. Maffei are in charge of the prosecution.
The Defendant:
BRIAN JOSEPH NEWTON
Age: 38
East Northport, New YorkE.D.N.Y. Docket No. 17-CR-341 (JFB)
Former NYPD Detective Sentenced to Three Months’ Imprisonment for Committing Perjury in a Federal ProsecutionRead the Press Release
Michael Foder, a former detective employed by the New York City Police Department (NYPD) at the time of the charged conduct, was sentenced in federal court in Brooklyn today by United States District Judge Pamela K. Chen to three months’ imprisonment. In August 2018, Foder pleaded guilty to perjury in connection with false statements he made under oath during a criminal proceeding. Foder was arrested in February 2018 and resigned from the NYPD in August 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, NYPD, announced the sentence.
“Integrity is an essential characteristic for every law enforcement officer and the overwhelming majority of officers earn and deserve the trust of the public,” stated United States Attorney Donoghue. “In choosing to lie, this defendant undermined fellow officers and rendered himself unfit to serve as a law enforcement officer.”
On December 29, 2016, Foder, then assigned to the 70th Precinct in Flatbush, Brooklyn, falsely testified under oath at a hearing in a federal prosecution about when and how he showed photographs of two robbery suspects to a victim of a carjacking. Following the hearing, the government found discrepancies in the photo array identifications, including when the identifications had occurred.
The government’s case is being handled by the Office’s Public Integrity Section. Assistant United States Attorney Nathan Reilly is in charge of the prosecution.
The Defendant:
MICHAEL FODER
Age: 42
Staten Island, NYE.D.N.Y. Docket No. 18-CR-97 (PKC)
Leader of Far Rockaway Drug Organization Sentenced to More Than 22 Years’ ImprisonmentRead the Press Release
Earlier today, Jose Rodriguez was sentenced by United States District Judge Eric N. Vitaliano to 272 months’ imprisonment for leading a Far Rockaway-based drug trafficking organization that distributed more than a kilogram of heroin, quantities of crack and powder cocaine and marijuana, and sold more than a dozen firearms, including two assault rifles. Rodriguez pleaded guilty on January 20, 2017 to conspiring to distribute narcotics and using and brandishing a firearm in furtherance of a narcotics distribution conspiracy.
Rodriguez is the fifth defendant to be sentenced in this case and a related case. In November 2017, Jose Perez was sentenced to 84 months’ imprisonment; in February 2018, Grace Jaen was sentenced to 33 months’ imprisonment; in December 2018, Jermaine Stephenson was sentenced to 72 months’ imprisonment; and in January 2019, Johnathan Johnson was sentenced to 87 months’ 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), John B. Devito, Special Agent-in-Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives, New York Division (ATF), and James P. O’Neill, Commissioner, New York City Police Department (NYPD), announced the sentence.
“Rodriguez’s drug organization endangered the residents of Far Rockaway, not only by distributing highly addictive drugs and guns throughout the community, but also using threats of gun violence to operate the drug business,” stated United States Attorney Donoghue. “This Office, along with our law enforcement partners, will continue to relentlessly investigate and prosecute to the fullest extent of the law those who threaten the safety of our communities.”
“The frustration and fear felt in communities plagued by drug dealers and criminal organizations protecting their turf must be exhausting for people just trying to live their lives,” stated FBI Assistant Director-in-Charge Sweeney. “The FBI’s New York Metro Safe Streets Task Force, along with our law enforcement partners, understands one of the most powerful ways to address the problem is going after the leadership of these groups. We work day in and day out with the goal of making an impact in places where people may not feel much hope.”
“The Rodriguez organization was responsible for distributing significant amounts of illegal narcotics and guns within the community. Members of this organization utilized illegal guns to terrorize the community in order to maintain control over their lucrative drug turf,” stated ATF Special Agent-in-Charge Devito. “This case is yet another example of how the men and woman of ATF work in a collaborative manner with all of our law enforcement partners to disrupt and dismantle violent criminal organizations. I would like to thank the Unites States Attorney’s Office for their work in prosecuting this case.”
“This is another great example of how the NYPD, in close partnership with our law enforcement colleagues, precisely hones in on the worst criminals in New York City and sees their cases through to appropriate and meaningful prison sentences,” stated NYPD Commissioner O’Neill. “Anyone who illegally deals in narcotics or firearms can fully expect the nation’s best investigators to be relentless in our mission to make every neighborhood safer.”
Rodriguez’s drug organization bought distribution quantities of heroin, and packaged it in “sleeves,” each containing 100 individual bags of heroin, and in “bundles,” each containing 10 individual bags of heroin, for resale by mid-level drug dealers to users. In a recorded conversation, Rodriguez admitted earning $10,000 to $20,000 per week selling drugs.
Rodriguez and his co-conspirators sold and used firearms in furtherance of their drug trafficking activities. During the investigation, Rodriguez was intercepted ordering firearms from co-conspirator Jonathan Johnson, who acquired them in North Carolina and delivered them to Rodriguez in Far Rockaway. In another intercepted call, a drug customer complained to Rodriguez that co-conspirator Jose Perez threatened him with a gun. Rodriguez replied, “I know he pulled a gun. . . . He did that because you owed me money. That’s why I told him not to shoot you.”
This case was investigated as part of the ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership that brings together the combined expertise and unique abilities of federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt, dismantle and prosecute high-level members of illegal drug and weapons trafficking organizations.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorneys’ Offices to work in partnership with federal, state, local and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime.
The government’s case is being prosecuted by Assistant United States Attorneys Kevin Trowel and Mathew S. Miller.
The Defendants:
Jose Rodriguez (also known as “Lazaro”)
Age: 51
Far Rockaway, New YorkJermaine Stephenson (also known as “Half”)
Age: 36
Far Rockaway, New YorkJose Perez
Age: 53
Far Rockaway, New YorkGrace Jaen
Age: 43
Far Rockaway, New YorkE.D.N.Y. Docket No. 15-576-ENV
JOHNATHAN JOHNSON (also known as “Black Keys”)
Age: 38
Rockingham, North CarolinaE.D.N.Y. Docket No. 17-185-ENV
Queens Man Sentenced to 15 Years’ Imprisonment for Producing Child PornographyRead the Press Release
Earlier today, in federal court in Brooklyn, Keith Liwanag was sentenced to 15 years’ imprisonment by United States District Judge Jack B. Weinstein following the defendant’s guilty plea in June 2018 to sexual exploitation of a child. Upon completion of his sentence, Liwanag must register as a sex offender.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, and Angel M. Melendez, Special Agent-in-Charge, U.S. Immigration and Customs Enforcement, Homeland Security Investigations (HSI), New York, announced the sentence.
“This is a just sentence for a defendant who used technology to victimize vulnerable children half a world away,” stated United States Attorney Donoghue. “Protecting children from sexual exploitation will always be a priority of this Office.” Mr. Donoghue extended his grateful appreciation to INTERPOL’s Crimes Against Children Unit for its investigative work and assistance during the investigation.
“Liwanag paid others to victimize children for his own pleasure,” stated HSI Special Agent-in-Charge Melendez. “His use of women in the Philippines to exploit children for the production of child pornography is not just criminal, it’s evil. Because of the great work of law enforcement and the prosecutor’s office, he will now serve 15 years for his unfathomable acts, facing the full justice of his actions behind bars.”
Between September 2016 and October 2016, Liwanag used a Facebook account to direct women in the Philippines to engage in sexual acts with children in exchange for money, and to produce and send child pornography to him over Facebook’s private messaging service. During the government’s investigation, law enforcement seized over 50 recorded video conferences between Liwanag and women engaged in the sexual abuse of children over Facebook and Skype. The investigation revealed that Liwanag shared the videos he created online.
This prosecution is part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The government’s case is being prosecuted by Assistant United States Attorneys Tanya Hajjar and Erin Reid.
The Defendant:
KEITH LIWANAG
Age: 27
Queens, New YorkBloods Gang Member Sentenced to 15 Years’ Imprisonment for Attempted Murder of Rival on Long IslandRead the Press Release
Earlier today, at the federal courthouse in Central Islip, Jermaine Green, also known as “730,” a member of the Bloods street gang from Roosevelt, New York, was sentenced by United States District Judge Joseph F. Bianco to 15 years’ imprisonment on his conviction for racketeering and discharging a firearm in connection with a crime of violence. The charges related to Green’s involvement in a conspiracy to murder rival gang members and a November 16, 2015 shooting in which Green fired at least nine shots from an assault rifle across a busy street. Green pleaded guilty to the charges on June 21, 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 Patrick J. Ryder, Commissioner, Nassau County Police Department (NCPD), announced the sentence.
“Green turned a suburban street into a war zone while attempting to murder a rival, firing multiple shots from an assault rifle in broad daylight, endangering not only the intended target but everyone in the vicinity,” stated United States Attorney Donoghue. “Today’s sentence ensures that the community will be protected from further crimes by the defendant for a long time. This Office, together with our law enforcement partners, remains committed to ridding Long Island of gangs that threaten our communities.”
“The men sentenced to federal prison in this case won’t be able to terrorize the Roosevelt community and areas around it any longer,” stated FBI Assistant Director-in-Charge Sweeney. “They waged a decade long gang war, creating fear and spreading crime at will. The FBI Long Island Gang Task Force investigated this case doggedly, rounding up the gang leadership, and crime dropped significantly soon after. Our work continues on other investigations to make sure others don’t attempt to fill the void.”
“The closure of this case with the sentencing of notorious Blood gang member Jermaine Green is a clear example this type of criminal behavior will never be accepted or tolerated,” stated NCPD Commissioner Ryder. “This multi-jurisdictional investigation completed by numerous law enforcement professionals takes a dangerous felon off the streets in Nassau County thus keeping our children, our families and the entire community safe. I would like to commend the dedication, professionalism and diligence of all of the investigators and the law enforcement agencies involved.”On November 16, 2015, Green and a fellow Bloods gang member retaliated against the Rollin’ 60s Crips by opening fire on a man who the defendant believed was responsible for the 2008 murder in Roosevelt of a Bloods member. The shooting took place as the man walked on Babylon Turnpike with another individual in the middle of the afternoon. Although no one was injured, the storefront of a nearby delicatessen was struck by several bullets.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorneys’ Offices to work in partnership with federal, state, local and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime.
To date, as part of this case, this Office has charged eight members and associates of the Bloods from Roosevelt for violent crimes committed on behalf of the gang. Five other members and associates of the gang have pled guilty and are awaiting sentence. The remaining two defendants are awaiting trial.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorneys Nicole Boeckmann and Michael Maffei are in charge of the prosecution.
The Defendant:
JERMAINE GREEN (also known as “730”)
Age: 28
Roosevelt, New YorkE.D.N.Y. Docket No. 17-CR-106 (S-2) (JFB)
Brooklyn Tax Return Preparer Pleads Guilty to Stolen Identity Refund Fraud SchemeRead the Press Release
A Brooklyn, New York, resident pleaded guilty on Friday to 42 counts of an indictment charging him with 18 counts of wire fraud, 22 counts of aggravated identity theft, one count of conspiring to commit aggravated identity theft, and one count of aiding and assisting the filing of a false tax return, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Richard P. Donoghue for the Eastern District of New York.
According to court documents, Bamgbala, the owner of Kaybamz Inc., a tax preparation business located in Brooklyn, New York, used stolen Social Security Numbers to file false tax returns with the Internal Revenue Service (IRS) to obtain fraudulent refunds. The superseding indictment also alleges that Bamgbala and others conspired to deposit the unlawfully obtained tax refund checks into a specified bank account to obtain the cash value of those checks, and created fraudulent IRS forms and New York State identification documents to facilitate the scheme.
Bamgbala faces a mandatory minimum sentence of two years in prison for each count of aggravated identity theft, a maximum sentence of 20 years in prison for each count of wire fraud, a maximum sentence of five years in prison for each conspiracy count, and a maximum sentence of three years in prison for the aiding and assisting in the filing of a false tax return count. He also faces a period of supervised release, restitution, forfeiture and monetary penalties.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Donoghue commended special agents of IRS Criminal Investigation, who conducted the investigation, and Trial Attorneys Mark McDonald and Eric Powers of the Tax Division, who are prosecuting the case.
Long Island Man Sentenced to 16 Years’ Imprisonment for Distributing Heroin That Caused Death of One College Student and Non-Fatal Overdose of AnotherRead the Press Release
Earlier today, at the federal courthouse in Central Islip, Richard Jacobellis was sentenced by United States District Judge Joanna Seybert to an agreed upon 16 years of imprisonment, to be followed by three years’ supervised release, for distributing heroin. When Jacobellis pleaded guilty in June 2018, he admitted that heroin he distributed caused the death of 20-year-old Nicholas Weber in 2016 and serious bodily injury to another in 2015.
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.
“With today’s sentence, Jacobellis will serve a significant jail term for callously pushing deadly heroin that resulted in the death of one young man and nearly killed another, but for the heroic efforts of Suffolk County Police Officers,” stated United States Attorney Donoghue. “We hope the victims’ families can find some solace in this result and in the knowledge that this Office will continue working tirelessly to hold accountable those who contribute to the opioid epidemic on Long Island and elsewhere in the district.” Mr. Donoghue thanked the Suffolk County Police Department for its assistance on the case.
“The defendant’s drugs killed a young man who had a whole life in front of him,” stated DEA Special Agent-in-Charge Donovan. “We cannot console the Weber family enough, but we can continue to investigate and arrest drug traffickers like Jacobellis.”
Jacobellis, a narcotics dealer since 2012, sold heroin to an individual on or about March 8, 2015. The individual, then 18-years-old, used the heroin and overdosed. Suffolk County Police Officers administered Narcan to the individual, who later recovered from a coma. On May 16, 2016, Jacobellis sold $100 worth of heroin to Weber, then 20-years-old, causing his death. Weber was a graduate of Kings Park High School where he was a champion wrestler in his weight class and, at the time of his death, was a student at Suffolk County Community College.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Christopher C. Caffarone is in charge of the prosecution.
The Defendant:
RICHARD JACOBELLIS
Age: 25
Ridge, New YorkE.D.N.Y. Docket No. 17-CR-52 (JS)
Six Members and Associates of Brooklyn “Eight Trey Cowboys” and “Bloods” Street Gangs Arrested for Trafficking Narcotics and FirearmsRead the Press Release
Earlier today, a complaint was unsealed in federal court in Brooklyn charging seven defendants variously with narcotics distribution in the Flatbush neighborhood of Brooklyn and firearms trafficking relating to the sale of an AK-47 rifle. The defendants Rahmel Smith, also known as “Mello,” Michael Martin, also known as “Scooter,” Jamel Aldridge, also known as “Vooks,” Tiffany Lanier and Shakayna Wheeler, who are members and associates of the Eight Trey Cowboys street gang; Shakim Carr, also known as “Sha,” a member of the Bloods street gang, and Shawn Taylor were arrested this morning and will be arraigned this afternoon before United States Magistrate Judge Steven M. Gold.
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 and arrests
“The dangerous mix of street gangs, drug dealing and illegal firearms poses a direct threat to the safety and quality of life of our residents,” stated United States Attorney Donoghue. “This Office and our partners in the FBI and the NYPD will continue to target and eradicate criminal gangs that contribute to addiction and violence in our communities.”
“The FBI is keenly focused on combating and dismantling local street gangs,” stated FBI Assistant Director-in-Charge Sweeney. “The suspects arrested in this case allegedly spread drugs and crime in our local communities where they believe they have to protect their turf. The FBI New York Metro Safe Streets Task Force works day in and day out to stop these gangs from terrorizing innocent people and spreading deadly illegal drugs.”
According to court documents, since early 2017, Smith, Carr, Martin, Aldridge, Lanier and Wheeler distributed crack, cocaine, heroin and marijuana. Smith, a leader of the Eight Trey Cowboys, directed fellow gang members Martin and Aldridge to sell narcotics on a daily basis, as well as Bloods member Carr, who was one of Smith’s main distributors. Based on wire interceptions, Lanier and Wheeler’s roles in the narcotics trafficking organization included preparing, packaging, delivering and accepting money for the narcotics and storing the narcotics at their residences. Additionally, Taylor is charged with selling Smith a Romarm Cugir rifle, commonly referred to as an AK-47, which was later resold by Smith to a confidential informant.
If convicted of the narcotics charges, Smith faces up to life in prison, Carr, Aldridge, Martin, Wheeler and Lanier face up to 20 years’ imprisonment. If convicted of the firearms charge, Taylor faces up to 10 years’ imprisonment.
The charges in the complaint are allegations, and the defendants are presumed innocent unless and until proven guilty.
This case was investigated by the FBI and NYPD as part of the ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership that brings together the combined expertise and unique abilities of federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt, dismantle and prosecute high-level members of illegal drug and weapons trafficking.
This case was brought as part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorneys’ Offices to work in partnership with federal, state, local and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime.
The case is being handled by the Office’s International Narcotics and Money Laundering Section. Assistant United States Attorneys Penelope J. Brady, Erin Reid and Temidayo Aganga-Williams are in charge of the prosecution.
The Defendants:
RAHMEL SMITH (also known as “Mello”)
Age: 29
Brooklyn, New YorkSHAKIM CARR (also known as “Sha”)
Age: 37
Brooklyn, New YorkMICHAEL MARTIN (also known as “Scooter”)
Age: 26
Brooklyn, New YorkJAMEL ALDRIDGE (also known as “Vooks”)
Age: 35
Brooklyn, New YorkTIFFANY LANIER
Age: 37
Brooklyn, New YorkSHAKAYNA WHEELER
Age: 25
Brooklyn, New YorkSHAWN TAYLOR
Age: 37
Brooklyn, New YorkE.D.N.Y. Docket No. 19-MJ-137
Produce Importer Convicted in Brooklyn Federal Court of Conspiring to Import Cocaine in a Shipment of Chili PeppersRead the Press Release
Earlier today, following a two-week trial, a federal jury in Brooklyn returned a guilty verdict against Humberto Baez for conspiring to import and distribute cocaine, and for possessing with intent to distribute cocaine, in connection with his participation in a scheme responsible for smuggling 16 kilograms of cocaine into the United States through the Dominican Republic in February 2018. When sentenced by United States District Judge Jack B. Weinstein, the defendant faces a mandatory minimum sentence of 10 years’ imprisonment.
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 Field Division (DEA), announced the verdict.
“The defendant’s scheme to conceal 16 kilograms of cocaine in a shipment of chili peppers wasn’t such a hot idea, and with today’s verdict, he has been held responsible for his crimes,” stated United States Attorney Donoghue. “I commend the prosecutors and the Drug Enforcement Administration agents for their excellent work in preventing illegal narcotics from being distributed in our country.”
“Drug traffickers go to extraordinary lengths to bring poison into our country,” stated DEA Special Agent-in-Charge Donovan. “The DEA has seen smuggling groups conceal drugs in bananas, floor tiles, exotic statues and even animals. This conviction sends a message to drug trafficking organizations that law enforcement is on watch. I applaud the U.S. Attorney’s Office for the Eastern District of New York and our law enforcement partners in their diligent efforts to bring Baez and other drug traffickers to justice.”
Between August 2016 and March 2018, Baez, a produce importer based in Pennsylvania, conspired with others to import cocaine, hidden inside a shipping container, into the United States. In furtherance of the conspiracy, Baez contacted an individual who, unbeknownst to Baez was cooperating with the DEA, to use the individual’s importing company as a front to transport cocaine from Baez’s source of supply in the Dominican Republic. Baez and his co-conspirators then set up two “dry run” shipments containing only produce into the Red Hook Terminal in Brooklyn, to establish the appearance of a legitimate business relationship between the exporter and importer and not attract scrutiny when subsequently shipping cocaine. In late February 2018, a third shipment arrived in Miami, Florida with approximately 16 kilograms of cocaine concealed in cardboard boxes containing chili peppers. Baez informed the cooperator that the third shipment contained “ripe tomatoes,” using agreed upon code words for cocaine, and instructed him to transport the narcotics by truck to Baez’s warehouse in Pennsylvania. On March 1, 2018, law enforcement officers searched the container and seized the hidden cocaine.
The government’s case is being handled by the Office’s International Narcotics & Money Laundering Section. Assistant United States Attorneys Nomi D. Berenson and Erin M. Reid are in charge of the prosecution.
The Defendant:
HUMBERTO BAEZ
Age: 50
Lancaster, PennsylvaniaE.D.N.Y. Docket No. 18-cr-168 (JBW)
Joaquin “El Chapo” Guzman, Sinaloa Cartel Leader, Convicted of Running a Continuing Criminal Enterprise and Other Drug-Related ChargesRead the Press Release
BROOKLYN, N.Y. – Joaquin Archivaldo Guzman Loera, known by various aliases, including “El Chapo” and “El Rapido,” was convicted today by a federal jury in Brooklyn of being a principal leader of a continuing criminal enterprise – the Mexican organized crime syndicate known as the Sinaloa Cartel – a charge that includes 26 drug-related violations and one murder conspiracy. Guzman Loera was convicted of all 10 counts of the superseding indictment, including narcotics trafficking, using a firearm in furtherance of his drug crimes and participating in a money laundering conspiracy. The verdict followed a 12-week trial before United States District Judge Brian M. Cogan. Guzman Loera faces a mandatory sentence of life imprisonment.
Matthew G. Whitaker, Acting Attorney General; Richard P. Donoghue, United States Attorney for the Eastern District of New York; Ariana Fajardo Orshan, United States Attorney for the Southern District of Florida; Brian A. Benczkowski, Assistant Attorney General of the Justice Department’s Criminal Division; Uttam Dhillon, Acting Administrator, U.S. Drug Enforcement Administration (DEA); Christopher A. Wray, Director, Federal Bureau of Investigation (FBI); Kirstjen Nielsen, Secretary, United States Department of Homeland Security; Derek Benner, Executive Associate Director, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Bryan T. Mullee, Acting U.S. Marshal, Eastern District of New York; and James P. O’Neill, Commissioner, New York City Police Department, announced the verdict.
The Evidence at Trial
As proven at trial, Guzman Loera was a principal leader of the Sinaloa Cartel, a Mexico-based international drug trafficking organization responsible for importing and distributing vast quantities of cocaine, marijuana, methamphetamine and heroin in the United States. The evidence at trial, including testimony from 14 cooperating witnesses; narcotics seizures totaling over 130,000 kilograms of cocaine and heroin; weapons, including AK-47s and a rocket-propelled grenade launcher; ledgers; text messages; videos; photographs and intercepted recordings, detailed the drug trafficking activity of Guzman Loera and his co-conspirators over a 25-year period from January 1989 until December 2014. Guzman Loera was repeatedly referred to by witnesses as one of the leaders of the Sinaloa Cartel.
Guzman Loera oversaw the smuggling of narcotics to wholesale distributors in New York, Miami, Atlanta, Chicago, Arizona, Los Angeles and elsewhere. The billions of illicit dollars generated from drug sales in the United States were then clandestinely transported back to Mexico. Guzman Loera used “sicarios,” or hit men, who carried out hundreds of acts of violence in Mexico to enforce Sinaloa’s control of territories and to eliminate those who posed a threat to the Sinaloa Cartel.
Drug Trafficking
In the course of the decades-long drug trafficking conspiracy, the Sinaloa Cartel transported tens of thousands of kilograms of narcotics from Central and South America for distribution in the United States. Guzman Loera used various methods to transport the cartel’s narcotics into the United States, including submarines, carbon fiber airplanes, trains with secret compartments and transnational underground tunnels. Multiple witnesses testified about seizures by law enforcement officers of massive amounts of cocaine, heroin and marijuana linked to the Sinaloa Cartel. One of the largest seizures of drugs bound for the U.S. involved over seven tons of cocaine concealed in jalapeño cans.
The jury also heard recordings of Guzman Loera’s own damning words discussing his drug trafficking, corruption and violence. calls included Guzman Loera discussing sending “ice,” meaning methamphetamine, to Ohio, Tucson, Minneapolis and Los Angeles.
Communications Network
Guzman Loera also utilized a sophisticated encrypted communications network to operate the global narcotics trafficking operation. As an information technology engineer testified at trial, Guzman Loera paid him one million dollars to purchase and set up a network to enable the defendant to communicate via Internet with his drug-trafficking associates in Colombia, Ecuador, Canada and the United States without fear of being intercepted by law enforcement or his rivals. The witness devised a secret and secure system, consisting of encrypted cell phones and encrypted apps.
Cartel Violence
The success of the Sinaloa Cartel relied upon the use of violence to maintain their power throughout the region and beyond. Numerous co-conspirators testified that Guzman Loera directed his hitmen to kidnap, interrogate, torture and shoot members of rival drug organizations, at times carrying out acts of violence himself. A former hitman testified that Guzman Loera beat two men with a tree branch until their bodies “were completely like rag dolls,” before shooting the men and ordering their bodies to be tossed into a bonfire. The former hitman also testified that Guzman Loera interrogated a rival drug cartel member, shot him and ordered that he be buried alive. In an intercepted call, the jury heard Guzman Loera order one of his sicarios to kidnap rival cartel members, but not to kill them without first checking with him.
Weapons
The Sinaloa Cartel had unfettered access to weapons. A law enforcement witness showed the jury over 40 AK-47s that were seized in El Paso, Texas before they could be delivered to Guzman Loera in Mexico. Additionally, witnesses identified photographs of various weapons, including grenades and a rocket-propelled grenade launcher utilized by the Sinaloa Cartel. Guzman Loera’s personal arsenal included a gold plated AK-47 and three diamond-encrusted .38 caliber handguns, one emblazoned with his initials, “JGL.”
Corruption
The evidence presented at trial demonstrated that to further the interests of the Sinaloa Cartel, Guzman Loera and his organization took advantage of a vast network of corrupt government officials. These officials ranged from local law enforcement officers, prison guards, state officials, high ranking members of the armed forces, as well as politicians. These corrupt officials assisted Guzman Loera and his organization in exchange for millions of dollars’ worth of bribery payments. For example, according to the testimony of several witnesses, in many instances, Guzman Loera and his workers were warned of pending law enforcement operations which allowed Guzman Loera to avoid capture on multiple occasions. In other instances, Guzman Loera, through his employees, paid officials to turn a blind eye to trafficking activities in an effort to facilitate the shipment of drugs, weapons and bulk cash.
Money Laundering
Guzman Loera’s lucrative drug trafficking business generated billions of dollars in illicit proceeds. Guzman Lorea used various methods to launder money including bulk cash smuggling from the United States to Mexico. One of the largest seizures was of $1.26 million seized from hidden compartments in a truck driven by Guzman Loera’s brother in Arizona in 1989. In addition to the bulk cash smuggling, Guzman Loera oversaw numerous shell companies, including a juice company and a fish flour company, to launder the cartel’s narcotics trafficking proceeds.
“I am pleased that the Department has brought Joaquin Guzman Loera (El Chapo) to justice by securing a conviction against this drug kingpin, who was a principal leader of the Sinaloa Cartel,” said Acting Attorney General Whitaker. “As was clear to the jury, Guzman Loera’s massive, multi-billion dollar criminal enterprise was responsible for flooding the streets of the United States with hundreds of tons of cocaine, as well as enormous quantities of other dangerous drugs such as heroin and methamphetamine. The trial evidence also overwhelmingly showed that Guzman’s unceasing efforts to expand his cartel’s control and consolidate its power left a wake of corruption and violence in communities in both Mexico and the United States. This case demonstrated the extraordinary reach of the U.S. government, our tenacity and commitment to pursuing kingpins like Guzman whom — if their power is unchecked — will, like Guzman, develop what for 25 years was an almost unstoppable capacity to move massive quantities of drugs into our country. Guzman had the capital to absorb huge losses and run his enterprise with impunity; the enormous power to corrupt; and the capability to employ violence on a massive scale. This case, and more importantly, this conviction serves as an irrefutable message to the kingpins that remain in Mexico, and those that aspire to be the next Chapo Guzman, that eventually you will be apprehended and prosecuted. Finally, this verdict demonstrates that the United States, working in close partnership with the Mexican government, will continue to bring all possible resources to bear in its fight against international drug traffickers and their violent organizations.”
“Guzman Loera’s bloody reign atop the Sinaloa Cartel has come to an end, and the myth that he could not be brought to justice has been laid to rest. Today, Guzman Loera has been held accountable for the tons of illegal narcotics he trafficked for more than two decades, the murders he ordered and committed, and the billions of dollars he reaped while causing incalculable pain and suffering to those devastated by his drugs,” stated EDNY United States Attorney Donoghue. “Today’s verdict is the culmination of the tireless work of countless brave members of law enforcement, here and abroad, and we congratulate them. The Department of Justice is committed to eradicating criminal organizations that fuel America’s drug epidemic, and our mission will continue until it is completed.”
“The conviction of former Sinaloa Cartel leader Joaquin Guzman Loera strips the power from a man who employed horrific acts of violence to infect communities, throughout the United States and abroad, with the venom of illicit drugs,” stated SDFL United States Attorney Fajardo Orshan. “Today’s verdict is a reminder to all, that our international borders do not protect narco-traffickers and the cartels’ criminal enterprises from federal prosecution. U.S. Attorney’s Offices across the nation stand united with our domestic and foreign law enforcement partners, as we continue our fight against transnational criminal organizations.”
“Today’s conviction of Joaquin “El Chapo” Guzman demonstrates the dedication and determination of the men and women of DEA to bring the world’s most dangerous and prolific drug trafficker to justice,” stated DEA Acting Administrator Dhillon. “Those who bring drugs and violence into the United States that destroy lives and communities will not be tolerated, nor evade our reach. The success of this case is a testament to the strength of our relationship with our Mexican counterparts. DEA will continue to pursue justice worldwide and protect Americans.”
“The reign of Joaquin Guzman Loera’s crime and violence has come to an end,” said FBI Director Christopher Wray. “As leader of the Sinaloa Cartel, Guzman Loera carried out and directed acts of brazen violence as he oversaw the import and distribution of vast amounts of illegal drugs throughout the United States. But today, through the steadfast determination and collective efforts of the FBI and our law enforcement partners both domestic and abroad, and due to our continuing partnership with the government of Mexico, justice has been served.”
“The guilty verdict against Joaquin Guzman Loera, one of the most violent and feared drug kingpins of our time, is a testament to the hard work and courage of America’s frontline law enforcement personnel, including ICE’s Homeland Security Investigations. They gathered substantial evidence over multiple investigations, which made his extradition to the United States and a successful prosecution possible,” stated United States Department of Homeland Security Secretary Nielsen. “Today’s verdict sends an unmistakable message to transnational criminals: you cannot hide, you are not beyond our reach, and we will find you and bring you to face justice. Like Guzman, you will suffer the consequences of your criminal behavior. I applaud the brave men and women at DHS who helped make this conviction possible and thank our interagency and international partners for their exceptional work.”
“HSI is committed to using our unique border authority to target and dismantle transnational criminal organizations responsible for trafficking narcotics and bringing violence into the United States,” said HSI Executive Associate Director Benner. “Through collaboration with local, federal and international law enforcement partners, HSI special agents were able to bring an end to Joaquin Guzman Loera’s criminal activities, and help ensure he was brought to justice.”
“The conviction of Joaquin “El Chapo” Guzman demonstrates what is possible when law enforcement works collectively and coordinates their efforts. The United States Marshals Service ensured the integrity of the judicial process in this case. From providing safe and secure detention and transportation of the world’s most notorious drug kingpin to ensuring the anonymity of the jury, protecting the judge, attorneys, witnesses and the public, the Marshals Service proudly played its important role in the process,” said Acting U.S. Marshal Mullee of the Eastern District of New York. “I would like to express my gratitude to all of our law enforcement partners who worked tirelessly in support of our mission. They are the talented men and women of the New York City Police Department, Federal Protective Service, 24th Civil Support Team of the New York National Guard, and the Federal Bureau of Prisons. The U.S. Marshals take our responsibility of protecting the federal judicial process very seriously. We must anticipate and deter threats, while continuously developing and employing innovative protective tactics. We carry out these responsibilities with precision every day across the country. The successful prosecution of Joaquin “El Chapo” Guzman stands as a shining example of our mission.”
“Just over two years ago, we announced the arrival of this notorious drug kingpin on U.S. soil, where he would face American justice and finally answer for his many years of illegal behavior. And today, I commend the members of the jury for their dedication to this important case, as well as the lawyers of the Eastern District and all of our domestic and foreign law-enforcement colleagues, who continue to be our great partners in so many efforts. In close cooperation with members of the DEA, the FBI, the U.S. Marshals Service, Homeland Security Investigations, the New York State Police and more, NYPD detectives on the Drug Enforcement Task Force tirelessly investigated Mr. Guzman Loera’s criminal enterprise for years,” stated NYPD Commissioner O’Neill. “Today’s guilty verdict shows that, collectively, we never shelve an unfinished case. He operated a drug-trafficking network responsible for perpetuating a murderous, toxic scourge that forever altered lives, tore apart families and netted billions of dollars in illicit revenue. I thank the investigators for their hard work, and I remind the people we serve that New York City and America will always stand with our colleagues around the world in the fight against any individual or criminal group that venerates illegal profit above all else.”When sentenced by Judge Cogan, Guzman Loera faces a mandatory life sentence without the possibility of parole for leading a continuing criminal enterprise, and a sentence of up to life imprisonment on the seven remaining drug counts. After the verdict, the government will seek a forfeiture money judgment for billions of dollars constituting the cartel’s illegal drug-trafficking proceeds.
The government’s case is being prosecuted by Assistant U.S. Attorneys Gina Parlovecchio, Andrea Goldbarg, Michael Robotti, Patricia Notopoulos and Hiral Mehta from the Eastern District of New York; Assistant U.S. Attorneys Adam Fels and Lynn Kirkpatrick from the Southern District of Florida; and Trial Attorneys Amanda Liskamm, Anthony Nardozzi, Michael Lang and Brett Reynolds of the U.S. Department of Justice Criminal Division’s Narcotic and Dangerous Drug Section.
The case was investigated by the DEA, ICE and the FBI, in cooperation with Mexican, Ecuadorian, Netherlands, Dominican and Colombian law enforcement authorities. Substantial assistance was provided by the U.S. Attorneys’ Offices in the Northern District of Illinois, the Western District of Texas, the Southern District of New York, the Southern District of California and the District of New Hampshire. The Department of Justice Office of International Affairs also played an integral role in securing the extradition of Guzman Loera to the United States, in cooperation with authorities of the Mexican government, without which his extradition and prosecution would not have been possible. The investigative efforts in this case were coordinated with the Department of Justice Special Operations Division, comprising agents, analysts and attorneys from the Criminal Division’s Narcotic and Dangerous Drug Section, DEA New York, DEA Miami, FBI Washington Field Office, FBI New York Field Office, FBI Miami Field Office, ICE HSI New York, ICE HSI Nogales, Bureau of Alcohol, Tobacco, Firearms and Explosives, U.S. Marshals Service, Internal Revenue Service - Criminal Investigation, U.S. Bureau of Prisons, NYPD and New York State Police.
This case is the result of the ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership that brings together the combined expertise and unique abilities of federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt, dismantle and prosecute high level members of drug trafficking, weapons trafficking and money laundering organizations and enterprises.
Joaquin 'El Chapo’ Guzman, Sinaloa Cartel Leader, Convicted of Running a Continuing Criminal Enterprise and Other Drug-Related ChargesRead the Press Release
Joaquin Archivaldo Guzman Loera, known by various aliases, including “El Chapo” and “El Rapido,” was convicted today by a federal jury in Brooklyn, New York of being a principal operator of a continuing criminal enterprise – the Mexican organized crime syndicate known as the Sinaloa Cartel – a charge that includes 26 drug-related violations and one murder conspiracy. Guzman Loera was convicted of all 10 counts of a superseding indictment, including narcotics trafficking, using a firearm in furtherance of his drug crimes and participating in a money laundering conspiracy. The verdict followed a 12-week trial before U.S. District Judge Brian M. Cogan. Guzman Loera faces a mandatory sentence of life imprisonment at his sentencing scheduled on June 25.
Acting Attorney General Matthew G. Whitaker, U.S. Department of Homeland Security Secretary Kirstjen Nielsen, Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Richard P. Donoghue for the Eastern District of New York, U.S. Attorney Ariana Fajardo Orshan for the Southern District of Florida, Acting Administrator Uttam Dhillon of the U.S. Drug Enforcement Administration (DEA), FBI Director Christopher Wray, Executive Associate Director Derek Benner of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) and Acting U.S. Marshal Bryan T. Mullee of the Eastern District of New York, announced the verdict.
The Evidence at Trial:
As proven at trial, Guzman Loera was a principal leader of the Sinaloa Cartel, a Mexico-based international drug trafficking organization responsible for importing and distributing vast quantities of cocaine, marijuana, methamphetamine and heroin into the United States. The evidence at trial, including testimony from 14 cooperating witnesses; narcotics seizures totaling over 130,000 kilograms of cocaine and heroin; weapons, including AK-47s and a rocket-propelled grenade launcher; ledgers; text messages; videos; photographs and intercepted recordings, detailed the drug trafficking activity of Guzman Loera and his co-conspirators over a 25-year period from January 1989 until December 2014. Guzman Loera was repeatedly referred to by witnesses as one of the leaders of the Sinaloa Cartel.
Guzman Loera oversaw the smuggling of narcotics to wholesale distributors in Arizona, Atlanta, Chicago, Los Angeles, Miami, New York, and elsewhere. The billions of illicit dollars generated from drug sales in the United States were then clandestinely transported back to Mexico. Guzman Loera also used “sicarios,” or hit men, who carried out hundreds of acts of violence in Mexico to enforce Sinaloa’s control of territories and to eliminate those who posed a threat to the Sinaloa Cartel.
Drug Trafficking
In the course of the decades-long drug trafficking conspiracy, the Sinaloa Cartel transported tens of thousands of kilograms of narcotics from Central and South America for distribution in the United States. Guzman Loera used various methods to transport the cartel’s narcotics into the United States, including submarines, carbon fiber airplanes, trains with secret compartments and transnational underground tunnels. Multiple witnesses testified about seizures by law enforcement officers of massive amounts of cocaine, heroin and marijuana linked to the Sinaloa Cartel. One of the largest seizures of drugs bound for the United States involved over seven tons of cocaine concealed in jalapeño cans.
The jury also heard recordings of Guzman Loera’s own damning words discussing his drug trafficking, corruption and violence. The calls included Guzman Loera discussing sending “ice,” meaning methamphetamine, to Los Angeles, California; Minneapolis, Minnesota; Ohio and Tucson, Arizona.
Communications Network
Guzman Loera also utilized a sophisticated encrypted communications network to operate the global narcotics trafficking operation. As an information technology engineer testified at trial, Guzman Loera paid him one million dollars to purchase and set up a network to enable the defendant to communicate via the internet with his drug trafficking associates in Colombia, Ecuador, Canada and the United States without fear of being intercepted by law enforcement or his rivals. The witness devised a secret and secure system, consisting of encrypted cell phones and encrypted apps.
Cartel Violence
The success of the Sinaloa Cartel relied upon the use of violence to maintain their power throughout the region and beyond. Numerous co-conspirators testified that Guzman Loera directed his hitmen to kidnap, interrogate, torture and shoot members of rival drug organizations, at times carrying out acts of violence himself. A former hitman testified that Guzman Loera beat two men with a tree branch until their bodies “were completely like rag dolls,” before shooting the men and ordering their bodies be tossed into a bonfire. The former hitman also testified that Guzman Loera interrogated a rival drug cartel member, shot him and ordered that he be buried alive. In an intercepted call, the jury heard Guzman Loera order one of his sicarios to kidnap rival cartel members, but not to kill them without first checking with him.
Weapons
The Sinaloa Cartel had unfettered access to weapons. A law enforcement witness showed the jury over 40 AK-47s that were seized in El Paso, Texas before they could be delivered to Guzman Loera in Mexico. Additionally, witnesses identifed photographs of various weapons, including grenades and a rocket-propelled grenade launcher utilized by the Sinaloa Cartel. Guzman Loera’s personal arsenal included a gold plated AK-47 and three diamond-encrusted .38 caliber handguns, one emblazoned with his initials, “JGL.”
Corruption
The evidence presented at trial demonstrated that to further the interests of the Sinaloa Cartel, Guzman Loera and his organization took advantage of a vast network of corrupt government officials. These officials ranged from local law enforcement officers, prison guards, state officials, high ranking members of the armed forces, as well as politicians. These corrupt officials assisted Guzman Loera and his organization in exchange for millions of dollars’ worth of bribery payments. For example, according to the testimony of several witnesses, in many instances, Guzman Loera and his workers were warned of pending law enforcement operations which allowed Guzman Loera to avoid capture on multiple occasions. In other instances, Guzman Loera, through his employees, paid officials to turn a blind eye to trafficking activities in an effort to facilitate the shipment of drugs, weapons, and bulk cash.
Money Laundering
Guzman Loera’s lucrative drug trafficking business generated billions of dollars in illicit proceeds. Guzman Loera used various methods to launder money including bulk cash smuggling from the United States to Mexico. One of the largest seizures was of $1.26 million seized from hidden compartments in a truck driven by Guzman Loera’s brother in Douglas, Arizona in 1989. In addition to the bulk cash smuggling, Guzman Loera oversaw numerous shell companies, including a juice company and a fish flour company to launder the cartel’s narcotics trafficking proceeds.
“I am pleased that the Department has brought Joaquin Guzman Loera (El Chapo) to justice by securing a conviction against this drug kingpin, who was a principal leader of the Sinaloa Cartel,” said Acting Attorney General Whitaker. “As was clear to the jury, Guzman Loera’s massive, multi-billion dollar criminal enterprise was responsible for flooding the streets of the United States with hundreds of tons of cocaine, as well as enormous quantities of other dangerous drugs such as heroin and methamphetamine. The trial evidence also overwhelmingly showed that Guzman’s unceasing efforts to expand his cartel’s control and consolidate its power left a wake of corruption and violence in communities in both Mexico and the United States. This case demonstrated the extraordinary reach of the U.S. government, our tenacity and commitment to pursuing kingpins like Guzman whom — if their power is unchecked — will, like Guzman, develop what for 25 years was an almost unstoppable capacity to move massive quantities of drugs into our country. Guzman had the capital to absorb huge losses and run his enterprise with impunity; the enormous power to corrupt; and the capability to employ violence on a massive scale. This case, and more importantly, this conviction serves as an irrefutable message to the kingpins that remain in Mexico, and those that aspire to be the next Chapo Guzman, that eventually you will be apprehended and prosecuted. Finally, this verdict demonstrates that the United States, working in close partnership with the Mexican government, will continue to bring all possible resources to bear in its fight against international drug traffickers and their violent organizations.”
“The guilty verdict against Joaquin Guzman Loera, one of the most violent and feared drug kingpins of our time, is a testament to the hard work and courage of America’s frontline law enforcement personnel, including ICE’s Homeland Security Investigations,” said DHS Secretary Nielsen. “They gathered substantial evidence over multiple investigations, which made his extradition to the United States and a successful prosecution possible. Today’s verdict sends an unmistakable message to transnational criminals: you cannot hide, you are not beyond our reach, and we will find you and bring you to face justice. Like Guzman, you will suffer the consequences of your criminal behavior. I applaud the brave men and women at DHS who helped make this conviction possible and thank our interagency and international partners for their exceptional work.”
“Guzman Loera’s bloody reign atop the Sinaloa Cartel has come to an end, and the myth that he could not be brought to justice has been laid to rest,” said U.S. Attorney Donoghue. “Today, Guzman Loera has been held accountable for the tons of illegal narcotics he trafficked for more than two decades, the murders he ordered and committed, and the billions of dollars he reaped while causing incalculable pain and suffering to those devastated by his drugs. Today’s verdict is the culmination of the tireless work of countless brave members of law enforcement, here and abroad, and we congratulate them. The Department of Justice is committed to eradicating criminal organizations that fuel America’s drug epidemic, and our mission will continue until it is completed.”
“The conviction of former Sinaloa Cartel leader Joaquin Guzman Loera strips the power from a man who employed horrific acts of violence to infect communities, throughout the United States and abroad, with the venom of illicit drugs,” said U.S. Attorney Fajardo Orshan. “Today’s verdict is a reminder to all, that our international borders do not protect narco-traffickers and the cartels’ criminal enterprises from federal prosecution. U.S. Attorney’s Offices across the nation stand united with our domestic and foreign law enforcement partners, as we continue our fight against transnational criminal organizations.”
“The reign of Joaquin Guzman Loera’s crime and violence has come to an end,” said FBI Director Wray. “As leader of the Sinaloa Cartel, Guzman Loera carried out and directed acts of brazen violence as he oversaw the import and distribution of vast amounts of illegal drugs throughout the United States. But today, through the steadfast determination and collective efforts of the FBI and our law enforcement partners both domestic and abroad, and due to our continuing partnership with the Government of Mexico, justice has been served.”
“Today’s conviction of Joaquin “El Chapo” Guzman demonstrates the dedication and determination of the men and women of DEA to bring the world’s most dangerous and prolific drug trafficker to justice,” said DEA Acting Administrator Dhillon. “Those who bring drugs and violence into the United States that destroy lives and communities will not be tolerated, nor evade our reach. The success of this case is a testament to the strength of our relationship with our Mexican counterparts. DEA will continue to pursue justice worldwide and protect Americans.”
“HSI is committed to using our unique border authority to target and dismantle transnational criminal organizations responsible for trafficking narcotics and bringing violence into the United States,” said HSI Executive Associate Director Benner. “Through collaboration with local, federal and international law enforcement partners, HSI special agents were able to bring an end to Joaquin Guzman Loera’s criminal activities, and help ensure he was brought to justice.”
“The conviction of Joaquin “El Chapo” Guzman demonstrates what is possible when law enforcement works collectively and coordinates their efforts,” said Acting U.S. Marshal Mullee. “The U.S. Marshals Service ensured the integrity of the judicial process in this case. From providing safe and secure detention and transportation of the world’s most notorious drug kingpin to ensuring the anonymity of the jury, protecting the judge, attorneys, witnesses and the public, the Marshals Service proudly played its important role in the process. I would like to express my gratitude to all of our law enforcement partners who worked tirelessly in support of our mission. They are the talented men and women of the New York City Police Department, Federal Protective Service, 24th Civil Support Team of the New York National Guard, and the Federal Bureau of Prisons. The U.S. Marshals take our responsibility of protecting the federal judicial process very seriously. We must anticipate and deter threats, while continuously developing and employing innovative protective tactics. We carry out these responsibilities with precision every day across the country. The successful prosecution of Joaquin “El Chapo” Guzman stands as a shining example of our mission.”
When sentenced by Judge Cogan, Guzman Loera faces a mandatory life sentence without the possibility of parole for leading a continuing criminal enterprise, and a sentence of up to life imprisonment on the seven remaining drug counts. After the verdict, the government will seek a forfeiture money judgment for billions of dollars constituting the cartel’s illegal drug-trafficking proceeds.
The government’s case is being prosecuted by U.S. Department of Justice Trial Attorneys Amanda Liskamm, Anthony Nardozzi, Michael Lang and Brett Reynolds of the Criminal Division’s Narcotic and Dangerous Drug Section, Assistant U.S. Attorneys Gina Parlovecchio, Andrea Goldbarg, Michael Robotti, Patricia Notopoulos and Hiral Mehta of the Eastern District of New York and Assistant U.S. Attorneys Adam Fels and Lynn Kirkpatrick of the Southern District of Florida.
The case was investigated by the DEA, HSI and the FBI, in cooperation with Mexican, Ecuadorian, Netherlands, Dominican, and Colombian law enforcement authorities. Substantial assistance was provided by the U.S. Attorneys’ Offices in the Northern District of Illinois, the Western District of Texas, the Southern District of New York, the Southern District of California and the District of New Hampshire. The Department of Justice’s Office of International Affairs also played an integral role in securing the extradition of Guzman Loera to the United States, in cooperation with authorities of the Mexican government, without which his extradition and prosecution would not have been possible. The investigative efforts in this case were coordinated with the Department of Justice’s Special Operations Division, comprising of agents, analysts and attorneys from the Criminal Division’s Narcotic and Dangerous Drug Section; DEA New York, DEA Miami, FBI Washington Field Office, FBI New York Field Office, FBI Miami Field Office; HSI New York, HSI Nogales; Bureau of Alcohol, Tobacco, Firearms and Explosives; U.S. Marshals Service; IRS Criminal Investigation; U.S. Bureau of Prisons, NYPD and New York State Police.
This case is the result of the ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership that brings together the combined expertise and unique abilities of federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt, dismantle and prosecute high level members of drug trafficking, weapons trafficking and money laundering organizations and enterprises.
Member of “G’z up” Street Gang Convicted of Two Murders in BrooklynRead the Press Release
A federal jury in Brooklyn returned a guilty verdict today against Nicholas Washington, also known as “Face,” a member of the Bedford Stuyvesant-based street gang G’z Up, on two counts of murder-in-aid of racketeering, two counts of causing a death through the use of a firearm, and attempted obstruction of justice. The verdict followed three weeks of trial before United States District Judge Eric N. Vitaliano. When sentenced, Washington faces a mandatory term of life imprisonment.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, and William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the verdict.
“As the jury found, Washington planned and directed two murderous schemes related to his drug trafficking enterprise at the Marcy Houses that left two unintended victims dead,” stated United States Attorney Donoghue. “Washington will now be held responsible for this total disregard for human life. Today’s verdict underscores the resolve of this Office and our law enforcement partners to eradicate violent gangs that jeopardize the safety of our communities.”
The evidence at trial established that between January 2004 and December 2006, Washington and other members and associates of G’z Up sold crack cocaine at the Marcy Houses in Bedford Stuyvesant, with a base of operations at 564 Park Avenue, as well as in Monticello, New York, and Altoona, Pennsylvania. On February 10, 2005, Washington directed two G’z Up members to kill the leader of a rival drug crew whose members were feuding with G’z Up. Washington provided a handgun and directed the two to ambush the leader of the drug crew inside a building at the Marcy Houses development. Both gunmen fired, but missed their intended target and killed a bystander, Steven Negron.
After Washington’s brother, John Hayes, was murdered by a rival in July 2006, Washington sought revenge. On August 7, 2006, the day of Hayes’s funeral, Washington traveled to the Tompkins Houses in Bedford Stuyvesant with five G’z Up members and associates, where they confronted the individual they believed responsible for Hayes’s murder. Two gunmen opened fire, but again missed their intended target, and instead killed a bystander, Andrell Napper.
Following his indictment on the murders in 2014, Washington evaded arrest for two years and in 2016 attempted to avoid arrest by providing false information to an NYPD officer.
The government’s case is being handled by the Office’s Organized Crime and Gangs Section. Assistant United States Attorneys Margaret Gandy and Virginia Nguyen are in charge of the prosecution.
The Defendant:
NICHOLAS WASHINGTON
Age: 35
Bedford Stuyvesant, BrooklynE.D.N.Y. Docket No. 14-CR-266 (ENV)
Member of Brooklyn Street Gang, Cypress Gansta Crips, Sentenced to 30 Years’ Imprisonment for Murder of a Bloods-Affiliated RivalRead the Press Release
Earlier today, at the federal courthouse in Brooklyn, Tyvon Bannister, also known as “Turtle,” a member of the Crips-affiliated Cypress Gangsta Crips (CGC) street gang, was sentenced by United States District Judge Brian M. Cogan to 30 years’ imprisonment following his conviction for the July 8, 2014 murder of Rayvon Henreques. Bannister pleaded guilty in May 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, Bannister will spend decades in prison for callously ending the life of a 26-year-old man simply because he was associated with a rival gang,” stated United States Attorney Donoghue. “This Office will continue working tirelessly with our law enforcement partners to make our community safe by eradicating these destructive street gangs and holding their violent members accountable.”
“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 instills fear in New Yorkers through their criminal actions. With this sentence today, the result of our efforts are tangible. I thank our colleagues at the Eastern District and the FBI for their unceasing professionalism and dedicated work in removing from our streets those who commit crime and disorder, especially when it’s in the form of gang violence,” stated NYPD Commissioner O’Neill.
Bannister is a member of the CGC, which is comprised of individuals residing in and around the Cypress Hills Houses (“Cypress”), a large New York City Housing Authority complex in East New York, Brooklyn. Cypress has been plagued by gang and drug-related violence arising largely from a long-standing feud between the CGC and a local Bloods-affiliated gang. On July 8, 2014, Bannister and another gang member shot and killed Henriques in front of a nightclub in East New York. Henriques was targeted because of his association with the Bloods-affiliated gang.
The government’s case is being handled by the Office’s Organized Crime and Gangs Section. Assistant United States Attorneys Margaret E. Gandy, Andrey Spektor and David Gopstein are in charge of the prosecution.
The Defendant:
TYVON BANNISTER (also known as “Turtle”)
Age: 25
Brooklyn, New YorkE.D.N.Y. Docket No. 17-CR-116 (BMC)
MS-13 Gang Members Charged with Assault In-Aid-Of RacketeeringRead the Press Release
Luis Rivas, Dennis Cabrera and Javier Rodriguez, members of La Mara Salvatrucha, also known as the MS-13, a transnational criminal organization, will be arraigned this afternoon before United States Magistrate Judge Vera M. Scanlon in federal court in Brooklyn on an indictment charging them with assault in-aid-of racketeering. The defendants were arrested earlier today and transferred to federal custody. The case is assigned to United States District Judge Pamela K. Chen.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and James P. O’Neill, Commissioner, New York City Police Department (NYPD), announced the indictment and arrests.
According to court filings, the defendants are members of MS-13. On October 22, 2018, while the defendants were incarcerated on state charges at the Manhattan Detention Complex, they assaulted a fellow inmate who they suspected to be a member of the rival Latin King gang, punching, kicking and stabbing him with a makeshift knife, first in his cell and then in a hallway of the facility. The brutal assault was captured on video surveillance footage. At the conclusion of the assault, Rivas flashed an MS-13 hand sign at the victim.
The victim suffered multiple puncture wounds to his back, torso and arms, including two deeper lacerations that required stitches.
“As alleged, the defendants are members of the MS-13, an international gang known for its culture of violence,” stated United States Attorney Donoghue. “Unprovoked, they assaulted and stabbed an inmate housed with them for no other reason than the inmate’s suspected affiliation with a rival gang. We will continue to work with our law enforcement partners to hold MS-13 members accountable for their crimes.” Mr. Donoghue thanked the Manhattan District Attorney’s Office for its assistance in the investigation.
“The gang members charged in this investigation displayed once again their disregard for obeying the law and for human life, allegedly stabbing and beating another inmate while incarcerated for other crimes. The FBI New York Safe Streets Task Forces work each day to disrupt and dismantle MS-13 in our communities, so their dangerous and criminal actions don’t harm innocent people.”
“Targeting and dismantling gangs and crews, and preventing the violence so often associated with their illegal activities, continues to be among the highest priorities for the NYPD and our law enforcement partners,” stated NYPD Commissioner O’Neill. “By precisely targeting the relatively 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. We remain relentless in our efforts to identify, arrest, and prosecute anyone who involves themselves in such behavior whether it is on our streets or in our jails.”
The charges in the indictment are allegations, and the defendants are presumed innocent unless and until proven guilty. If convicted, the defendants face a maximum of 20 years’ imprisonment.
Today’s indictment is the latest in a series of federal prosecutions by the United States Attorney’s Office for the Eastern District of New York targeting members of the MS-13, a violent international criminal organization. The MS-13’s leadership is based in El Salvador and Honduras, but the gang has thousands of members across the United States, comprised primarily of immigrants from Central America. Since 2003, hundreds of MS-13 members, including dozens of clique leaders, have been convicted on federal felony charges in the Eastern District of New York. A majority of those MS-13 members have been convicted on federal racketeering charges for participating in murders, attempted murders and assaults. Since 2010, this Office has obtained indictments charging MS-13 members with carrying out more than 45 murders in the district, and has convicted dozens of MS-13 leaders and members in connection with those murders. These prosecutions are the product of investigations led by our law enforcement partners including the FBI’s Safe Streets Task Force, comprising agents and officers of the FBI and NYPD.
The government’s case is being prosecuted by the Office’s Organized Crime and Gangs Section. Assistant United States Attorneys Nadia E. Moore and Nadia I. Shihata are in charge of the prosecution.
Colombian Veterinarian Sentenced in Brooklyn Federal Court to 72 Months’ Imprisonment for Heroin Importation ConspiracyRead the Press Release
Earlier today, at the federal courthouse in Brooklyn, Andres Lopez Elorez, a veterinarian who surgically implanted liquid heroin in puppies on behalf of Colombian drug traffickers, was sentenced by United States District Judge Sterling Johnson, Jr. to 72 months’ imprisonment. In September 2018, Elorez pleaded guilty to conspiring to import heroin into the United States. Upon completion of his sentence, the defendant will be deported.
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.
“Every dog has its day, and with today’s sentence, Elorez has been held responsible for the reprehensible use of his veterinary skills to conceal heroin inside puppies as part of a scheme to import dangerous narcotics into the United States,” stated United States Attorney Donoghue. “This Office and our law enforcement partners will continue to investigate and prosecute drug trafficking organizations, operating here and abroad, to reduce the availability of opioids and save American lives.” Mr. Donoghue extended his grateful appreciation to the U.S. Drug Enforcement Administration, New York and Miami Divisions and Bogota and Madrid Country Offices; the United States Marshals Service; the Colombian National Police; the Government of Spain and the Spanish Guardia Civil for their assistance in the investigation, extradition and prosecution.
“This sentencing closes the case on a trafficking organization that used live puppies to smuggle drugs from Colombia to New York,” stated DEA Special Agent-in-Charge Donovan. “Today, the veterinarian responsible for surgically implanting packets of liquid heroin in puppies has been sentenced to 72 months in federal prison. I commend our law enforcement partners and U.S. Attorney’s Office, Eastern District of New York, for their diligent efforts throughout this 14-year investigation.”
According to court filings and facts presented during court proceedings, Elorez and his co-conspirators, based in Colombia, smuggled heroin into the United States using various methods to conceal the narcotics from law enforcement. Specifically, between September 8, 2004 and January 1, 2005, Elorez leased a farm in Medellin, Colombia, where he secretly raised dogs and surgically implanted bags of liquid heroin in nine puppies for importation into the United States. On January 1, 2005, law enforcement searched the farm and seized 17 bags of liquid heroin weighing nearly three kilograms, including 10 bags that were removed from the puppies. Three of the puppies died after they contracted a virus following the surgeries.
Elorez was a fugitive until he was arrested in Spain in 2015. Elorez was extradited to the United States in May 2018.
The government’s case is being handled by the Office’s International Narcotics and Money Laundering Section. Assistant United States Attorneys Nathan D. Reilly and Alicia N. Washington are in charge of the prosecution.
The Defendant:
ANDRES LOPEZ ELOREZ
Age: 39
Country of Birth: ColombiaE.D.N.Y. Docket No. 05-CR-835 (SJ)
Two Members of “Black Rain” Drug Crew Indicted in Queens Cold Case MurdersRead the Press Release
An indictment was unsealed today in federal court in Brooklyn charging Darin Hamilton, also known as “Satch,” and Jerome Jones, also known as “Sha,” for their participation in the 1992 murders of Anthony Lloyd and Robert Arroyo. Specifically, Hamilton is charged with the intentional murder of Anthony Lloyd while engaged in narcotics trafficking, and both defendants are charged with the murder of Robert Arroyo while engaged in narcotics trafficking, as well as conspiracy to do the same. Hamilton was arrested this morning and is scheduled to be arraigned this afternoon before United States Magistrate Judge Robert M. Levy. Jones is in federal custody and 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 James P. O’Neill, Commissioner, New York City Police Department (NYPD), announced the arrests.
As detailed in the indictment and the government’s detention memorandum, Hamilton and Jones were members of a Queens-based crew that called itself “Black Rain,” and sold narcotics at several locations on Rockaway Boulevard in the early 1990s. Specifically, the crew sold heroin under the brand name “Black Rain,” cocaine under the brand name “White Lightning” and crack cocaine under the brand name “Thunder.” The gang committed acts of violence, including murder, to protect its profitable operation.
Both murders took place in the vicinity of 128th Street and Rockaway Boulevard in South Ozone Park, where Hamilton and Jones managed a drug spot. As alleged, in June 1992, Hamilton shot and killed Anthony Lloyd, whom he believed had stolen from Black Rain.
Two months later, in August 1992, Hamilton and Jones recruited and paid two members of Black Rain to murder Robert Arroyo, whom they believed was a police informant. In their first attempt, the recruits mistakenly shot another man they incorrectly believed to be Arroyo. The victim survived his wounds. On September 8, 1992, at Hamilton and Jones’s direction, the two recruits located Arroyo on a crowded street and shot him multiple times, killing him.
“As today’s charges make clear, we will not let the passage of time deter us from bringing murderers to justice. It is our hope that this prosecution will bring some measure of consolation to the families of the victims,” stated United States Attorney Donoghue. Mr. Donoghue praised the extraordinary investigative efforts of the FBI and NYPD.
“Investigations grow cold with the passage of time, but investigators don’t stop searching for evidence they need to bring the suspects involved to justice,” stated FBI Assistant Director-in-Charge Sweeney. “Anthony Lloyd and Robert Arroyo were murdered nearly three decades ago, and their killers may have believed they were in the clear. However, the FBI New York Metro Safe Streets Task Force and our partners at the NYPD want this case to serve as a warning for those who believe they can let their guard down, we are still on the case and we won’t give up.”
“Today’s charges prove that the best investigators in the world do not ever forget victims, and they do not ever forget the justice that is owed to those victims’ families,” stated NYPD Commissioner O’Neill. “All New Yorkers deserve to be safe, and to feel safe. The NYPD and our colleagues at the U.S. Attorney’s Office for the Eastern District and the FBI will stop at nothing until every street, in every neighborhood of New York City, is as safe as our safest streets are today.”
The government’s case is being handled by the Office’s Organized Crime and Gangs Section. Assistant United States Attorneys Tanya Hajjar, Moira Kim Penza and Penelope J. Brady are in charge of the prosecution.
The Defendants:
JEROME JONES (also known as “Sha”)
Age: 54
West VirginiaDARIN HAMILTON (also known as “Satch”)
Age: 60
South Ozone Park, QueensE.D.N.Y. Docket No. 19-CR-54 (NGG)
Top Executive at Long Island Mortgage Lender Pleads Guilty to $8.9 Million FraudRead the Press Release
Earlier today in federal court in Central Islip, New York, Edward E. Bohm, President of Sales and an undisclosed owner of Long Island mortgage lender Vanguard Funding, LLC (Vanguard), pleaded guilty to conspiring to commit wire fraud and bank fraud in connection with the illegal diversion of more than $8.9 million of warehouse loans that Vanguard had obtained to fund mortgages. The guilty plea was entered before United States District Judge Sandra J. Feuerstein. When sentenced, Bohm faces up to 30 years in prison, as well as restitution, criminal forfeiture and a fine.
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, and Linda A. Lacewell, Acting Superintendent, New York State Department of Financial Services, announced the guilty plea.
According to court filings and the facts presented at the plea proceedings, between August 2015 and March 2017, Bohm engaged in a scheme in which he and others obtained warehouse, or short-term, loans for Vanguard by falsely representing that Vanguard would use the proceeds of those loans to fund mortgages or provide mortgage refinancing for Vanguard’s clients. Once Vanguard received the loans, however, Bohm, along with others diverted the monies to pay personal expenses and compensation, and to pay off loans they had previously obtained with fraudulent loan submissions for improper purposes.
Earlier, in 2018, Vanguard’s Chief Operating Officer and the Chief Financial Officer entered guilty pleas in connection with this fraud and were sentenced to terms of incarceration.
The government’s case is being handled by the Office’s Business and Securities Fraud Section. Assistant United States Attorneys Whitman G.S. Knapp and Elizabeth Losey Macchiaverna are handling the prosecution with assistance from Assistant United States Attorney Laura Mantell of the Office’s Asset Forfeiture Section.
The Defendant:
EDWARD E. BOHM
Age: 41
Residence: Nissequogue, New YorkE.D.N.Y. Docket No. 18-CR-036 (SJF)
Former Chief Executive Officer and Senior Vice President of Barbadian Insurance Company Charged with Laundering Bribes to Former Minister of Industry of BarbadosRead the Press Release
BROOKLYN, N.Y. – Ingrid Innes, the former chief executive officer, and Alex Tasker, a former senior vice president of Insurance Corporation of Barbados Limited (ICBL), a Barbados-based insurance company, were charged in a superseding indictment unsealed on January 18, 2019, with laundering bribes to the former Minister of Industry of Barbados in exchange for his assistance in securing government contracts for ICBL. Innes and Tasker are not in U.S. custody.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, Brian A. Benczkowski, Assistant Attorney General of the Justice Department’s Criminal Division, and William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the charges.
Innes and Tasker were charged with one count of conspiracy to launder money and two counts of money laundering in the superseding indictment. The former Minister of Industry of Barbados, Donville Inniss, a U.S. legal permanent resident who resided in Tampa, Florida, and Barbados, was charged with the same crimes in an indictment unsealed on August 6, 2018, and as a co-defendant of Innes and Tasker in the superseding indictment. Inniss is scheduled for trial on June 24, 2019, before United States District Judge Kiyo A. Matsumoto.
The superseding indictment alleges that in 2015 and 2016, Innes and Tasker participated in a scheme to launder into the United States approximately $36,000 in bribes that they paid to Inniss, who at the time was a member of the Parliament of Barbados and the Minister of Industry, International Business, Commerce and Small Business Development of Barbados.
The charges in the superseding indictment are allegations, and the defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
ICBL voluntarily disclosed to the government the payments to Inniss and received a prosecution declination under the FCPA Corporate Enforcement Policy. ICBL disgorged to the government $93,940.19 in illicit profits that it earned from the scheme.
The FBI’s New York Field Office and International Corruption Squad is investigating the case. In 2015, the FBI formed International Corruption Squads across the country to address national and international implications of foreign corruption.
Assistant United States Attorney Sylvia Shweder of the U.S. Attorney’s Office for the Eastern District of New York and Trial Attorney Gerald M. Moody, Jr., of the Criminal Division’s Fraud Section are in charge of the prosecution.
The Fraud Section is responsible for investigating and prosecuting all Foreign Corrupt Practices Act (FCPA) matters. Additional information about the Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
The Defendants:
DONVILLE INNISS
Age: 52
BarbadosINGRID INNES
Age: 63
CanadaALEX TASKER
Age: 58
BarbadosE.D.N.Y. Docket No. 18-CR-134 (S-1) (KAM)
Brooklyn Couple Arrested for Immigration Fraud SchemeRead the Press Release
A criminal complaint was unsealed today in federal court in Brooklyn charging William Jacobsen and his wife Marta Medvedeva with conspiring, and aiding and abetting others, to enter into sham marriages with foreign nationals for the purpose of obtaining lawful permanent residency in the United States. The defendants were also charged with evading United States immigration laws by making materially false statements in immigration applications, affidavits and other documents. The defendants’ initial appearances were held 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.
“Our immigration process is not for sale. The defendants’ scheme to game the system and reap ill-gotten profits by promoting sham marriages is not only criminal, it is an affront to those individuals who abide by the rules to obtain permanent residency in the United States lawfully,” stated United States Attorney Donoghue. “Today’s charges send the clear message that this Office and our partners at the FBI will not tolerate such activity.”
As alleged in the complaint, between approximately November 2016 and January 2019, Jacobsen and Medvedeva identified and recruited U.S. citizens who were willing to enter into sham marriages with foreign nationals. The foreign nationals paid the defendants approximately $30,000 for their services, and a portion of the fee was then passed on to the U.S. citizen spouses for their participation in the fraud. The defendants also coached the couples on how to successfully pass immigration interviews and provided misleading or false documentation needed during various steps in the immigration process.
During several recordings and communications, Jacobsen and Medvedeva discussed the details of their scheme, including the number of participants they had available to participate in the “fake” marriages (as characterized by Jacobsen), payment of approximately $10,000 to the U.S. citizens for their services, and the coaching and training the couples would receive to pass the required immigration interviews. In one recorded conversation, Jacobsen explained to a confidential source posing as a potential U.S. citizen spouse:
The hardest part is getting married. The easy part is the [immigration] interview, because I know the questions they’re gonna ask you. That’s why everyone comes here, because they want training. Everybody’s looking for training. When I do it, it’s a five minute interview. You go with the lawyer, you’re in there for an hour, hour and a half. I’ve been doing it for fifteen years …. This is the easy part. The hardest part is the marriage, cause both sides are nervous, they have to go there and kiss each other. Interview is nothing, that’s the easy part.
The charges in the complaint are allegations, and the defendants are presumed innocent unless and until proven guilty. If convicted, Jacobsen and Medvedeva each face a maximum sentence of 10 years’ imprisonment.
The government’s case is being handled by the Office’s Public Integrity Section. Assistant United States Attorneys Maria Cruz Melendez and Elizabeth Macchiaverna are in charge of the prosecution.
The Defendants:
WILLIAM JACOBSEN
Age: 60
Brooklyn, New YorkMARTA MEDVEDEVA
Age: 68
Queens, New YorkEDNY Docket No. 19-MJ-57
Chinese Telecommunications Conglomerate Huawei and Huawei CFO Wanzhou Meng Charged with Financial FraudRead the Press Release
BROOKLYN, N.Y. – A 13-count indictment was unsealed earlier today in federal court in Brooklyn, New York, charging four defendants,[1] all of whom are affiliated with Huawei Technologies Co. Ltd. (Huawei), the world’s largest telecommunications equipment manufacturer, with headquarters in the People’s Republic of China (PRC) and operations around the world. The indicted defendants include Huawei and two Huawei subsidiaries — Huawei Device USA Inc. (Huawei USA) and Skycom Tech Co. Ltd. (Skycom) — as well as Huawei’s Chief Financial Officer (CFO) Wanzhou Meng (Meng).
The defendants Huawei and Skycom are charged with bank fraud and conspiracy to commit bank fraud, wire fraud and conspiracy to commit wire fraud, conspiracy to defraud the United States, conspiracy to violate and substantive violations of the International Emergency Economic Powers Act (IEEPA), and conspiracy to commit money laundering. Huawei and Huawei USA are charged with conspiracy to obstruct justice related to the Grand Jury investigation in the Eastern District of New York. Meng is charged with bank fraud, wire fraud, and conspiracy to commit bank and wire fraud.
Matthew G. Whitaker, Acting United States Attorney General, 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, John C. Demers, Assistant Attorney General of the Justice Department’s National Security Division, Christopher A. Wray, Director, Federal Bureau of Investigation (FBI), Kirstjen Nielsen, Secretary, U.S. Department of Homeland Security, and Wilbur Ross, Secretary, U.S. Department of Commerce, announced the charges.
“Today we are announcing that we are bringing criminal charges against telecommunications giant Huawei and its associates for nearly two dozen alleged crimes,” stated Acting Attorney General Whitaker. “As I told Chinese officials in August, China must hold its citizens and Chinese companies accountable for complying with the law. I’d like to thank the many dedicated criminal investigators from several different federal agencies who contributed to this investigation and the Department of Justice attorneys who are moving the prosecution efforts forward. They are helping us uphold the rule of law with integrity.”
“As charged in the indictment, Huawei and its subsidiaries, with the direct and personal involvement of their executives, engaged in serious fraudulent conduct, including conspiracy, bank fraud, wire fraud, sanctions violations, money laundering and the orchestrated obstruction of justice,” stated United States Attorney Donoghue. “For over a decade, Huawei employed a strategy of lies and deceit to conduct and grow its business. This Office will continue to hold accountable companies and their executives, whether here or abroad, that commit fraud against U.S. financial institutions and their international counterparts and violate U.S. laws designed to maintain our national security.” Mr. Donoghue thanked the FBI, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, U.S. Department of Commerce Office of Export Enforcement and the Defense Criminal Investigative Service agents who are investigating this case for their tireless work and dedication.
“These charges lay bare Huawei’s blatant disregard for the laws of our country and standard global business practices,” stated FBI Director Wray. “Companies like Huawei pose a dual threat to both our economic and national security, and the magnitude of these charges make clear just how seriously the FBI takes this threat. Today should serve as a warning that we will not tolerate businesses that violate our laws, obstruct justice, or jeopardize national and economic well-being.”
“As charged in the indictment, Huawei and its Chief Financial Officer broke U.S. law and have engaged in a fraudulent financial scheme that is detrimental to the security of the United States,” stated U.S. Department of Homeland Security Secretary Nielsen. “They willfully conducted millions of dollars in transactions that were in direct violation of the Iranian Transactions and Sanctions Regulations, and such behavior will not be tolerated. The Department of Homeland Security is focused on preventing nefarious actors from accessing or manipulating our financial system, and we will ensure that legitimate economic activity is not exploited by our adversaries. I would like to thank ICE Homeland Security Investigations for their exceptional work on this case.”
“For years, Chinese firms have broken our export laws and undermined sanctions, often using the U.S. financial systems to facilitate their illegal activities,” stated U.S. Department of Commerce Secretary Ross. “This will end. The Trump Administration continues to be tougher on those who violate our export control laws than any administration in history. I commend the Department’s Office of Export Enforcement, and our partners in the FBI, Justice Department, Department of Defense, and Department of Homeland Security for their excellent work on this case.”
* * * *
Overview of the Indictment
The charges in this case relate to a long-running scheme by Huawei, its CFO, and other employees to deceive numerous global financial institutions and the United States government regarding Huawei’s business activities in Iran. Beginning in 2007, Huawei employees misrepresented Huawei’s relationship to an unofficial subsidiary in Iran called Skycom, and as a result falsely claimed that Huawei had only limited operations in Iran and that Huawei did not violate U.S. or other laws or regulations related to Iran. Most significantly, after news publications in late 2012 and 2013 disclosed that Huawei operated Skycom as an unofficial subsidiary in Iran and that Meng had served on the board of directors of Skycom, Huawei employees, and in particular Meng, continued to lie to Huawei’s banking partners about Huawei’s relationship with Skycom, falsely claiming that Huawei had sold its interest in Skycom to an unrelated third party in 2007 and also that Skycom was merely Huawei’s local business partner in Iran. In reality, Skycom was Huawei’s longstanding Iranian subsidiary, and Huawei orchestrated the 2007 sale to appear as an arm’s length transaction between two unrelated parties although Huawei actually controlled the company that purchased Skycom.
As part of this scheme to defraud, Meng personally made a presentation in August 2013 to an executive of one of Huawei’s major banking partners in which she repeatedly lied about the relationship between Huawei and Skycom.
Huawei relied on its global banking partners for banking services that included processing U.S.-dollar-denominated transactions through the United States. U.S. laws and regulations generally prohibited these banks from providing U.S.-dollar transactions related to Iran through the United States. The banks could have faced civil or criminal penalties for processing transactions that violated U.S. laws or regulations. Relying on the repeated misrepresentations by Huawei, banking partners continued their banking relationships with Huawei. One banking partner cleared more than $100 million worth of Skycom-related transactions through the United States between 2010 and 2014.
As a further part of this scheme to defraud, Huawei and its principals repeatedly lied to U.S. government authorities about the relationship between Huawei and Skycom in submissions to the U.S. government, and in responses to government inquiries. For example, Huawei provided false information to the U.S. Congress regarding whether Huawei’s business in Iran violated any U.S. law. Similarly, as indicated in the indictment, in 2007 — months before Huawei orchestrated the purported sale of Skycom to another Huawei-controlled entity — Huawei’s founder falsely stated to FBI agents that Huawei did not have any direct dealings with Iranian companies and that Huawei operated in compliance with all U.S. export laws.
After one of Huawei’s major global banking partners (identified as Financial Institution 1 in the indictment) decided to exit the relationship in 2017 because of Huawei’s risk profile, Huawei allegedly made additional misrepresentations to several of its remaining banking partners in an effort to maintain and expand those relationships. Huawei and its principals are alleged to have repeatedly and falsely claimed that Huawei had decided to separate from Financial Institution 1, and not that Financial Institution 1 had decided to cause the separation. On the basis of these misrepresentations, those other banking partners continued their banking relationships with Huawei.
In 2017, when Huawei became aware of the government’s investigation, Huawei and its subsidiary Huawei USA tried to obstruct the investigation by making efforts to move witnesses with knowledge about Huawei’s Iran-based business to the PRC, and beyond the jurisdiction of the U.S. government, and by destroying and concealing evidence of Huawei’s Iran-based business that was located in the United States.
In December 2018, Canadian authorities apprehended Meng in Vancouver pursuant to a provisional arrest warrant issued under Canadian law. The U.S. government is seeking Meng’s extradition to the United States.
The charges in the indictment are merely allegations, and the defendants are presumed innocent unless and until proven guilty.
The indictment unsealed today is assigned to U.S. District Judge Ann M. Donnelly of the Eastern District of New York.
The government’s investigation is ongoing. Individuals and companies with information about additional misconduct by these defendants or their related entities and principals should contact their local FBI field office.
The investigation is being jointly conducted by the FBI’s New York Field Office, HSI’s New York Field Office, OEE’s New York Field Office, and DCIS’s New York Resident Agency. Agents from the FBI, HSI, OEE, and DCIS offices in Dallas provided significant support and assistance. The government’s case is being handled by the National Security and Cybercrime and Business and Securities Fraud Sections of the U.S. Attorney’s Office for the Eastern District of New York, Justice Department’s Criminal Division’s Money Laundering and Asset Recovery Section (MLARS), and Justice Department’s National Security Division’s Counterintelligence and Export Control Section (CES).
Assistant U.S. Attorneys Alexander A. Solomon, Julia Nestor, David K. Kessler, Kaitlin Farrell, and Sarah Evans, MLARS Trial Attorneys Laura Billings and Christian Nauvel, and CES Trial Attorneys Thea D. R. Kendler and David Lim are in charge of the prosecution, with assistance provided by Assistant U.S. Attorney Mark Penley of the Northern District of Texas, Assistant U.S. Attorneys Brian Morris and Brendan King of the Eastern District of New York’s Civil Division and Trial Attorneys Andrew Finkelman and Margaret O’Malley of DOJ’s Office of International Affairs. Additional Criminal Division and National Security Division Trial Attorneys and Assistant U.S. Attorneys within U.S. Attorney’s Offices for the Northern District of Texas, the Eastern District of Texas, and the Northern District of California have provided valuable assistance with various aspects of this investigation.
The Defendants:
Huawei Technologies Co. Ltd.
Huawei Device USA Inc.
Skycom Tech Co. Ltd.
Meng Wanzhou, also known as “Cathy Meng” and “Sabrina Meng”
Age: 46Residence: People’s Republic Of China
E.D.N.Y. Docket No. 18-CR-457 (AMD)
[1] The indictment charges other individuals who have not yet been apprehended and whose names will not be publicly released at this time.
Chinese Telecommunications Conglomerate Huawei and Huawei CFO Wanzhou Meng Charged with Financial FraudRead the Press Release
Huawei Device USA Inc. and Huawei’s Iranian Subsidiary Skycom Also Named Defendants
Other Charges Include Money Laundering, Conspiracy to Defraud the United States, Obstruction of Justice and Sanctions Violations
A 13-count indictment was unsealed earlier today in federal court in Brooklyn, New York, charging four defendants,[1] including Huawei Technologies Co. Ltd. (Huawei), the world’s largest telecommunications equipment manufacturer, with headquarters in the People’s Republic of China (PRC) and operations around the world. The indicted defendants include Huawei and two Huawei affiliates — Huawei Device USA Inc. (Huawei USA) and Skycom Tech Co. Ltd. (Skycom) — as well as Huawei’s Chief Financial Officer (CFO) Wanzhou Meng (Meng).
The defendants Huawei and Skycom are charged with bank fraud and conspiracy to commit bank fraud, wire fraud and conspiracy to commit wire fraud, violations of the International Emergency Economic Powers Act (IEEPA) and conspiracy to violate IEEPA, and conspiracy to commit money laundering. Huawei and Huawei USA are charged with conspiracy to obstruct justice related to the grand jury investigation in the Eastern District of New York. Meng is charged with bank fraud, wire fraud, and conspiracies to commit bank and wire fraud.
Acting U.S. Attorney General Matthew G. Whitaker, Secretary Kirstjen Nielsen of the U.S. Department of Homeland Security, Secretary Wilbur Ross of the U.S. Department of Commerce, U.S. Attorney Richard P. Donoghue for the Eastern District of New York, FBI Director Christopher A. Wray, Assistant Attorney General Brian A. Benczkowski of the Justice Department's Criminal Division and Assistant Attorney General John C. Demers of the National Security Division, announced the charges.
“Today we are announcing that we are bringing criminal charges against telecommunications giant Huawei and its associates for nearly two dozen alleged crimes," said Acting Attorney General Whitaker. "As I told Chinese officials in August, China must hold its citizens and Chinese companies accountable for complying with the law. I’d like to thank the many dedicated criminal investigators from several different federal agencies who contributed to this investigation and the Department of Justice attorneys who are moving the prosecution efforts forward. They are helping us uphold the rule of law with integrity.”
“As charged in the indictment, Huawei and its Chief Financial Officer broke U.S. law and have engaged in a fraudulent financial scheme that is detrimental to the security of the United States,” said Secretary Nielsen. “They willfully conducted millions of dollars in transactions that were in direct violation of the Iranian Transactions and Sanctions Regulations, and such behavior will not be tolerated. The Department of Homeland Security is focused on preventing nefarious actors from accessing or manipulating our financial system, and we will ensure that legitimate economic activity is not exploited by our adversaries. I would like to thank ICE Homeland Security Investigations for their exceptional work on this case.”
“For years, Chinese firms have broken our export laws and undermined sanctions, often using U.S. financial systems to facilitate their illegal activities,” said Secretary Ross. “This will end. The Trump Administration continues to be tougher on those who violate our export control laws than any administration in history. I commend the Commerce Department’s Office of Export Enforcement, and our partners in the FBI, Justice Department, Department of Defense, and Department of Homeland Security for their excellent work on this case.”
“As charged in the indictment, Huawei and its subsidiaries, with the direct and personal involvement of their executives, engaged in serious fraudulent conduct, including conspiracy, bank fraud, wire fraud, sanctions violations, money laundering and the orchestrated obstruction of justice,” stated U.S. Attorney Donoghue. “For over a decade, Huawei employed a strategy of lies and deceit to conduct and grow its business. This Office will continue to hold accountable companies and their executives, whether here or abroad, that commit fraud against U.S. financial institutions and their international counterparts and violate U.S. laws designed to maintain our national security.” Mr. Donoghue thanked the FBI, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), U.S. Department of Commerce Office of Export Enforcement (OEE) and the Defense Criminal Investigative Service (DCIS) agents who are investigating this case for their tireless work and dedication.
“These charges lay bare Huawei’s alleged blatant disregard for the laws of our country and standard global business practices,” said FBI Director Wray. “Companies like Huawei pose a dual threat to both our economic and national security, and the magnitude of these charges make clear just how seriously the FBI takes this threat. Today should serve as a warning that we will not tolerate businesses that violate our laws, obstruct justice, or jeopardize national and economic well-being.”
* * * *
Overview of the Indictment
The charges in this case relate to a long-running scheme by Huawei, its CFO, and other employees to deceive numerous global financial institutions and the U.S. government regarding Huawei’s business activities in Iran. As alleged in the indictment, beginning in 2007, Huawei employees lied about Huawei’s relationship to a company in Iran called Skycom, falsely asserting it was not an affiliate of Huawei. The company further claimed that Huawei had only limited operations in Iran and that Huawei did not violate U.S. or other laws or regulations related to Iran. Most significantly, after news publications in late 2012 and 2013 disclosed that Huawei operated Skycom as an unofficial affiliate in Iran and that Meng had served on the board of directors of Skycom, Huawei employees, and in particular Meng, continued to lie to Huawei’s banking partners about Huawei’s relationship with Skycom. They falsely claimed that Huawei had sold its interest in Skycom to an unrelated third party in 2007 and that Skycom was merely Huawei’s local business partner in Iran. In reality, Skycom was Huawei’s longstanding Iranian affiliate, and Huawei orchestrated the 2007 sale to appear as an arm’s length transaction between two unrelated parties, when in fact Huawei actually controlled the company that purchased Skycom.
As part of this scheme to defraud, Meng allegedly personally made a presentation in August 2013 to an executive of one of Huawei’s major banking partners in which she repeatedly lied about the relationship between Huawei and Skycom.
According to the indictment, Huawei relied on its global banking relationships for banking services that included processing U.S.-dollar transactions through the United States. U.S. laws and regulations generally prohibited these banks from processing transactions related to Iran through the United States. The banks could have faced civil or criminal penalties for processing transactions that violated U.S. laws or regulations. Relying on the repeated misrepresentations by Huawei, these banks continued their banking relationships with Huawei. One bank cleared more than $100 million worth of Skycom-related transactions through the United States between 2010 and 2014.
In furtherance of this scheme to defraud, and as alleged in the indictment, Huawei and its principals repeatedly lied to U.S. government authorities about Huawei’s business in Iran in submissions to the U.S. government, and in responses to government inquiries. For example, Huawei provided false information to the U.S. Congress regarding whether Huawei’s business in Iran violated any U.S. law. Similarly, as indicated in the indictment, in 2007 — months before Huawei orchestrated the purported sale of Skycom to another Huawei-controlled entity — Huawei’s founder falsely stated to FBI agents that Huawei did not have any direct dealings with Iranian companies and that Huawei operated in compliance with all U.S. export laws.
After one of Huawei’s major global banking partners (identified as Financial Institution 1 in the indictment) decided to exit the Huawei relationship in 2017 because of Huawei’s risk profile, Huawei allegedly made additional misrepresentations to several of its remaining banking partners in an effort to maintain and expand those relationships. Huawei and its principals are alleged to have repeatedly and falsely claimed that Huawei had decided to terminate its banking relationship with Financial Institution 1, when in fact it was Financial Institution 1 that had decided to terminate the banking relationship. Through these misrepresentations, Huawei was able to continue its banking relationships with its other banks.
In 2017, when Huawei became aware of the government’s investigation, Huawei and its subsidiary Huawei USA allegedly tried to obstruct the investigation by making efforts to move witnesses with knowledge about Huawei’s Iran-based business to the PRC, and beyond the jurisdiction of the U.S. government, and by concealing and destroying evidence of Huawei’s Iran-based business that was located in the United States.
In December 2018, Canadian authorities apprehended Meng in Vancouver pursuant to a provisional arrest warrant issued under Canadian law. The U.S. government is seeking Meng’s extradition to the United States.
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 indictment unsealed today is assigned to U.S. District Judge Ann M. Donnelly of the Eastern District of New York.
The government’s investigation is ongoing.
The investigation is being jointly conducted by the FBI’s New York Field Office, HSI’s New York Field Office, OEE’s New York Field Office, and DCIS’s Southwest and Northeast Field Offices. Agents from the FBI, HSI, and OEE offices in Dallas provided significant support and assistance. The government’s case is being handled by the National Security and Cybercrime and Business and Securities Fraud Sections of the U.S. Attorney’s Office for the Eastern District of New York, the Justice Department’s Criminal Division’s Money Laundering and Asset Recovery Section (MLARS), and the Justice Department’s National Security Division’s Counterintelligence and Export Control Section (CES).
Assistant U.S. Attorneys Alexander A. Solomon, Julia Nestor, David K. Kessler, Kaitlin Farrell, and Sarah Evans, MLARS Trial Attorneys Laura Billings and Christian Nauvel, and CES Trial Attorneys Thea D. R. Kendler and David Lim are in charge of the prosecution, with assistance provided by Assistant U.S. Attorney Mark Penley of the Northern District of Texas, Assistant U.S. Attorneys Brian Morris and Brendan King of the Eastern District of New York’s Civil Division and Trial Attorneys Andrew Finkelman and Margaret O’Malley of DOJ’s Office of International Affairs. Additional Criminal Division and National Security Division Trial Attorneys and Assistant U.S. Attorneys within U.S. Attorney’s Offices for the Northern District of Texas, the Eastern District of Texas, and the Northern District of California have provided valuable assistance with various aspects of this investigation.
The Defendants:
Huawei Technologies Co. Ltd.
Huawei Device USA Inc.
Skycom Tech Co. Ltd.
Meng Wanzhou, also known as “Cathy Meng” and “Sabrina Meng”
Age: 46Residence: People’s Republic Of China
E.D.N.Y. Docket No. 18-CR-457 (AMD)
[1] The indictment charges other individuals who have not yet been apprehended and whose names will not be publicly released at this time.
MS-13 Gang Member Sentenced to 27 Years’ Imprisonment for Murder on Long IslandRead the Press Release
Earlier today, at the federal courthouse in Central Islip, William Castellanos, also known as “Dizzy” and “Satanico,” a member of La Mara Salvatrucha, also known as the MS-13, a violent transnational criminal organization, was sentenced by United States District Judge Joseph F. Bianco to 27 years’ imprisonment. The sentencing followed Castellanos’s February 2018 guilty plea to firearms-related murder charges in connection with the June 30, 2015 murder of 16 year-old Jonathan Cardona-Hernandez in Central Islip, New York.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), Geraldine Hart, Commissioner, Suffolk County Police Department (SCPD), and Patrick J. Ryder, Commissioner, Nassau County Police Department (NCPD), announced the sentence.
“Castellanos brutally murdered Jonathan Cardona-Hernandez simply because he believed Cardona-Hernandez was a member of a rival gang,” stated United States Attorney Donoghue. “With today’s sentence, Castellanos will pay for this senseless crime. The defendant’s conviction and punishment reflects the commitment of this Office and our law enforcement partners to vigorously investigate, prosecute and dismantle MS-13 and any other gang that terrorizes our communities.”
“The success of our collaborative efforts with our law enforcement partners is evident in today’s sentencing — the latest in a series holding MS-13 members accountable for their despicable crimes,” stated SCPD Commissioner Hart. “The Suffolk County Police Department will continue to focus our resources on halting the violence that surrounds MS-13, and I would like to thank the Eastern District of New York and the Long Island Gang Task Force for their unwavering commitment to dismantling this violent street gang.”
“The arrest, conviction and sentencing of defendant William Castellanos in connection with the 2015 murder of 16 year-old Jonathan Cardona-Hernandez is an excellent example of the professionalism and dedication of numerous law enforcement agencies that have worked tirelessly and collaborated on this case,” stated NCPD Commissioner Ryder. “Our residents and communities will be safer with defendant Castellanos incarcerated. Gangs and their heinous crimes can never be tolerated in any community and we are taking a proactive approach to keep our residents and police safe.”
Castellanos, who was a member of the Karlington Locos Salvatruchas clique of MS-13 (“KLS”) based in Central Islip, and two MS-13 co-conspirators targeted Cardona-Hernandez because they suspected that he was associated with a rival gang, known as “L-Block.” In the early morning hours of June 30, 2015, Castellanos and his co-conspirators drove Cardona-Hernandez to the vicinity of Nicoll Avenue and Messina Street in Central Islip. When Cardona-Hernandez exited the car, Castellanos approached him from behind and shot him multiple times with a 9mm semi-automatic handgun. The co-conspirators then took turns shooting Cardona-Hernandez with a second 9mm semi-automatic handgun. Cardona-Hernandez was struck by at least 10 bullets and was found dead in the street. The shooters fled the crime scene, met with an MS-13 leader and telephoned MS-13 leaders in El Salvador to report that the murder had been successfully carried out. By the time of his arrest by the FBI’s Long Island Gang Task Force in May 2016, Castellanos had risen to the position of leader of the KLS clique.
Today’s conviction is the latest in a series of federal prosecutions by the United States Attorney’s Office for the Eastern District of New York targeting members of MS-13. MS-13’s leadership is based in El Salvador and Honduras, but the gang has thousands of members across the United States, comprised primarily of immigrants from Central America. With numerous branches, or “cliques,” the MS-13 is the largest and most violent street gang on Long Island. Since 2003, hundreds of MS-13 members, including dozens of clique leaders, have been convicted on federal felony charges in the Eastern District of New York. A majority of those MS-13 members have been convicted on federal racketeering charges for participating in murders, attempted murders and assaults. Since 2010, this Office has obtained indictments charging MS-13 members with carrying out more than 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 the FBI’s Long Island Gang Task Force, comprising agents and officers of the FBI, SCPD, NCPD, Nassau County Sheriff’s Department, Suffolk County Probation, Suffolk County Sheriff’s Department, Rockville Centre Police Department, the New York State Police, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorneys John J. Durham, Paul G. Scotti, Raymond A. Tierney, Michael T. Keilty and Justina L. Geraci are in charge of the prosecution.
The Defendant:
WILLIAM CASTELLANOS (“Dizzy” and “Satanico”)
Age: 22
Central Islip, New YorkE.D.N.Y. Docket No. 16-CR-403 (JFB)
Drug Trafficker Sentenced to 121 Months’ for Conspiring to Distribute Heroin, Cocaine and Marijuana Across New York CityRead the Press Release
Earlier today, at the federal courthouse in Brooklyn, John Santos was sentenced by United States District Judge Frederic Block to 121 months’ imprisonment, to be followed by five years’ supervised release, following his December 2017 guilty plea to participating in a conspiracy to distribute a kilogram or more of heroin, five kilograms 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, New York Division (DEA), Angel M. Melendez, Special Agent-in-Charge, Homeland Security Investigation, 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.
“With today’s sentence, Santos will serve a significant prison term for his role as the leader of a large-scale drug trafficking ring,” stated United States Attorney Donoghue. “This Office and our law enforcement partners are responding to the opioid epidemic by vigorously investigating and prosecuting those like the defendant who seek to line their own pockets by selling dangerous drugs in our communities.”
“This sentencing is one of many successes in law enforcement’s battle against opioid abuse because it serves as a reminder that we are dedicated to identifying, investigating and dismantling drug trafficking organizations,” stated DEA Special Agent-in-Charge Donovan. “Enforcement is a key factor in fighting opioid abuse and in stopping fatal overdoses in our cities because it takes away their means to wreak havoc.”
“Running the full gamut of drug trafficking, John Santos ran a criminal organization that flooded the streets on New York City with cocaine, heroin and marijuana,” stated HSI Special Agent-in-Charge Melendez. “Today’s sentencing proves once again that being employed as a drug dealer in this city comes with severe consequences.”
“The sentencing of Santos sends a clear message that we will not tolerate this kind of activity anywhere in New York State,” stated NYSP Acting Superintendent Corlett. “Santos had no regard for the damage his actions inflicted upon the communities where he trafficked narcotics. The State Police will continue to work aggressively with our federal and local partners to stop the flow of illegal and dangerous drugs onto our streets.”
“The NYPD’s efforts to combat the far-reaching opioid crisis by ridding New York City streets of drug traffickers are greatly strengthened by our close partnerships with the U.S. Attorney for the Eastern District and the Drug Enforcement Administration,” stated NYPD Commissioner O’Neill. “Anyone who deals in illegal narcotics should understand that the nation’s best investigators will stop at nothing to fight crime and keep safe all the people we serve.”
Between July 2016 and March 2017, Santos led a Bronx-based drug trafficking ring that 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. Santos also served as the principal point of contact for the narcotics source of supply based in the Dominican Republic.
Two co-defendants, Robert Santos and Kevin Brito, previously pleaded guilty and are 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:
JOHN SANTOS
Age: 36
Bronx, New YorkE.D.N.Y. Docket No. 17-CR-147 (FB)
Six Defendants Arrested for Distributing Heroin in the East New York Section of Brooklyn and ElsewhereRead the Press Release
Earlier today, an indictment was unsealed in federal court in Brooklyn charging five defendants for their participation in a heroin distribution ring operating in the East New York section of Brooklyn and elsewhere. A sixth defendant was arrested and charged in a complaint with possessing heroin as part of the operation. The defendants were arrested this morning in Brooklyn, Queens and Long Island and will be arraigned this afternoon before Chief United States Magistrate Judge Roanne L. Mann.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and James P. O’Neill, Commissioner, New York City Police Department (NYPD), announced the charges.
“As alleged in the indictment and complaint, these defendants distributed high purity heroin in our communities, with life-threatening consequences,” stated United States Attorney Donoghue. “With today’s arrests, their drug trafficking operation has been dismantled, and the defendants will now face justice for their crimes.”
According to the indictment, complaint and other court filings, the defendants regularly acquired kilograms of heroin to process, repackage and distribute on the streets of Brooklyn and elsewhere. The defendants routinely tested the quality of the heroin to ensure it was sufficiently potent. On one occasion, as captured in court-authorized messages, defendant Dino Sanchez texted co-defendant Melvin Sanabria using coded terms to indicate he had a “bentley” and a “phantom” for Sanabria. Thereafter, in a court-authorized intercepted call, Sanabria complained that a subsequent sample Sanchez provided was inferior quality, stating, “I don’t rent hondas or acuras … around here we drive benz and lambos.”
Earlier this morning, law enforcement executed search warrants at three of the defendants’ residences, two additional stash houses and two vehicles, and seized over four kilograms of heroin, three firearms (including one with a defaced serial number), more than $100,000 in U.S. currency and various drug paraphernalia, including over 10,000 glassine envelopes.
The charges announced today are allegations, and the defendants are presumed innocent unless and until proven guilty. If convicted, the defendants face mandatory minimum sentences of 10 years’ imprisonment and up to life imprisonment.
The government’s case is being handled by the Office’s Organized Crime and Gangs Section. Assistant United States Attorney Keith D. Edelman is in charge of the prosecution.
The Defendants:
DINO SANCHEZ (also known as “Dinito”)
Age: 40
East New York, BrooklynALEX AYBAR
Age: 47
Bayside, QueensRALIEK BROWN (also known as “Burger”)
Age: 36
East New York, BrooklynMELVIN SANABRIA (also known as “Mel”)
Age: 42
East Rockaway, New YorkROGELIO VARGAS (also known as “Macho”)
Age: 43
East New York, BrooklynE.D.N.Y. Docket No. 19-CR-14 (AMD)
RAMON SANABRIA (also known as “Junior”)
Age: 48
South Ozone Park, QueensE.D.N.Y. Docket No. 19-MJ-36
Brooklyn-Based Bloods Gang Member Indicted for Racketeering, Murder and Armed RobberyRead the Press Release
A nine-count indictment was unsealed today in federal court in Central Islip charging Dylan Cruz, also known as “L Banga,” an alleged member of the Red Lane Gorillas set of the Bloods street gang, with racketeering, conspiring to murder rival gang members, murder in-aid-of racketeering, armed robbery and related firearms counts. The indictment was returned under seal by a federal grand jury on December 12, 2018. The defendant is scheduled to be arraigned this morning before United States District Judge Joseph F. Bianco.
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), Patrick J. Ryder, Commissioner, Nassau County Police Department (NCPD), and James P. O’Neill, Commissioner, New York City Police Department (NYPD), announced the charges.
“The charges in the indictment reflect the extreme danger Cruz posed to communities on Long Island and in Brooklyn as he allegedly killed a man mistakenly thought to have betrayed a gang member, shot and paralyzed a suspected rival gang member and wounded two bystanders in furtherance of the Bloods’ criminal enterprise,” stated United States Attorney Donoghue. “Cruz will now be brought to justice for his charged crimes, and this Office will continue working tirelessly with federal, state and local law enforcement partners to eradicate violent street gangs.” Mr. Donoghue thanked the FBI Long Island Gang Task Force, the NCPD Gang Investigation Squad, NCPD Homicide Squad, NYPD Gun Violence Suppression Division, Violence Reduction Task Force and the NYPD Firearm Investigation Unit, for their assistance in the ongoing investigation.
Between 2010 and 2016, Cruz and other members of the Red Lane Gorillas allegedly engaged in a violent gang war against rival gangs, including the Crips and the 5-9 Brims set of the Bloods, in Nassau County and Brooklyn. The indictment charges Cruz with the July 2012 murder in Baldwin Harbor of Anthony Richard, whom Cruz and fellow gang members wrongly suspected of betraying the Bloods. Cruz and others followed Richard’s car until it was parked. Cruz then approached the car and fired more than a dozen shots, killing Richard and severely wounding a passenger.
Cruz is also charged with the attempted murder of a suspected rival gang member in Roosevelt in November 2010, in which the victim was shot in the back and paralyzed; the attempted murder of a second rival gang member in January 2013, in which a bystander was shot in the foot; and a gun-point robbery at a used car dealership in North Merrick in June 2016, in which an employee was pistol-whipped by Cruz and a co-conspirator.
The charges in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty.
Several other members of the Red Lane Gorillas set of the Bloods are charged in a separate indictment with conspiracy to commit murder, attempted murder in-aid-of racketeering, assault in-aid-of racketeering and related firearms charges.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorneys Nicole Boeckmann and Michael Maffei are in charge of the prosecution.
The Defendant:
Dylan Cruz (also known as “L Banga”)
Age: 27
Brooklyn, New YorkE.D.N.Y. Docket No. 18-CR-664 (JFB)
Five Members of Mexican Sex Trafficking Organization Sentenced to PrisonRead the Press Release
WASHINGTON – Five members of an international criminal organization known as the Rendon-Reyes Trafficking Organization (the “Organization”) were sentenced last week in federal court in Brooklyn to prison terms of 15 to 25 years by United States District Court Judge Edward R. Korman. The amount to be paid in restitution will be announced at a later date. Three additional defendants are scheduled to be sentenced on January 15, 2019. The defendants previously pled guilty to racketeering, sex trafficking and other federal charges following their arrests in Mexico and the United States. Between December 2004 and November 2015, the Organization, based in Tenancingo, Tlaxcala, Mexico, smuggled numerous young women and girls from Mexico and Central America into the United States, and forced them to engage in prostitution for the Organization’s profit, generating hundreds of thousands of dollars that were then laundered back to Mexico.
Acting Attorney General Matthew Whitaker, United States Attorney Richard P. Donoghue of the Eastern District of New York, Assistant Attorney General Eric Dreiband of the Justice Department’s Civil Rights Division, and Homeland Security Investigations Executive Associate Director Derek Benner (HSI), announced the sentences.
“These well-deserved sentences reflect the gravity of the human trafficking crimes these defendants committed,” stated Acting Attorney General Whitaker. “The defendants operated an extensive sex trafficking enterprise that preyed on vulnerable young women and girls, deceiving them with false promises, coercing their compliance, and compelling them into submission through beatings, threats, isolation, and intimidation. This prosecution is the result of strong partnerships among the Eastern District of New York, the Civil Rights Division’s Human Trafficking Prosecution Unit, the New York Office of the Department of Homeland Security’s Homeland Security Investigations, and our Mexican law enforcement counterparts. The sentences imposed in this case demonstrate our unwavering commitment to working across international borders to dismantle transnational trafficking networks and seek justice on behalf of victims and survivors.”
“These sentencings are the latest chapter in this Office’s long-term commitment to eradicate human trafficking and all forms of modern-day slavery,” stated United States Attorney Donoghue. “The crimes committed by the members of the Rendon-Reyes Trafficking Organization were brutal and shocking, and I hope that the sentences give the victims in this case some sense of justice. We will not tolerate the exploitation of women and girls for profit or sexual servitude.”
“These individuals will now face the consequences of their callous criminal actions exploiting women and girls whom they forced into sex slavery for profit. The investigation and prosecution that led to today’s sentencings speak to the strong bilateral relationship between the United States and Mexico, in which both nations are committed to holding accountable those engaged in the ruthless act of human trafficking,” said Homeland Security Investigations Executive Associate Director Derek Benner. “Investigating human trafficking remains a priority for HSI, whose primary focus is to rescue victims and release them from the grip of their captors. HSI will continue leveraging all of its investigative capabilities to disrupt human trafficking syndicates no matter where in the world they operate.”
The defendants were sentenced to the following prison terms:
- Jovan Rendon-Reyes, aka Jovani, 32, of Mexico, was sentenced to 20 years in prison. According to court documents, the defendant forced a minor to perform countless commercial sex acts for a substantial period using violence, manipulation and fear. Among other abusive acts, he raped the victim, and he repeatedly and severely beat her when she did not earn enough money. He also contributed directly to the Organization’s victimization of other women and girls.
- Saul Rendon-Reyes, aka Satanico, 41, of Mexico, was sentenced to 15 years in prison. According to court documents, the defendant forced a victim to perform commercial sex acts for a substantial period, including shortly after she gave birth, using violence, manipulation and fear. Among other abusive acts, he severely and repeatedly beat the victim, and deprived her of food. He also contributed directly to the Organization’s victimization of other women and girls, on one occasion depriving a victim of food to force her to have sex with him.
- Felix Rojas, 48, of Mexico, was sentenced to 25 years in prison. According to court documents, the defendant forced two victims to perform countless commercial sex acts for substantial periods using violence, manipulation and fear. Among other abusive acts, he kidnapped the first victim and her child, bringing them to Tenancingo. He then left the child with other members of the Organization, and smuggled the victim into the United States. While in the United States, he threatened to harm the victim’s child to force her to prostitute. On one occasion, when he learned that the victim was pregnant, he severely beat her until he caused a miscarriage, terminating the pregnancy. With respect to the second victim, he withheld food for her and her newborn if she refused to prostitute, and he severely and repeatedly beat her. He also contributed directly to the victimization of other women and girls.
- Odilon Martinez-Rojas, aka Chino or Saul, 47, of Mexico, was sentenced to 293 months in prison. According to court documents, the defendant forced three victims to perform countless commercial sex acts for substantial periods, using violence, manipulation and fear. Among other abusive acts, he raped the first victim, and severely and repeatedly beat her, including with a bat, when she did not earn enough money. With respect to the second victim, he threated to force her friend, who was a virgin, to prostitute, and he beat her when she tried to protect her friend. With respect to the third victim, when he learned that she was pregnant, he forced her to take pills to induce a miscarriage, terminating the pregnancy, and then violently and brutally beat her, dragging her by the hair, throwing her down stairs and stomping on her face when she did not immediately return to prostituting. In addition, when he was arrested in 2013 as part of a separate case in the Northern District of Georgia, he and Severiano Martinez-Rojas obstructed the investigation by causing the victim to refuse to cooperate with law enforcement. He also contributed directly to the Organization’s victimization of other women and girls. Odilon Martinez-Rojas previously was sentenced to 262 months in prison in a separate Northern District of Georgia case. The sentence imposed last week will run concurrent with his prior sentence.
- Severiano Martinez-Rojas, 53, of Mexico, was sentenced to 293 months in prison. According to court documents, the defendant forced a victim to perform countless commercial sex acts for a substantial period using violence, manipulation and fear. Among other abusive acts, he severely and repeatedly beat her when she refused to prostitute or tried to leave. In addition, he operated a brothel out of a trailer in Alabama, where many victims of the Organization were forced to prostitute. He also contributed directly to the Organization’s victimization of other women and girls, raped one of the victims, and threatened another victim to prevent her from cooperating with law enforcement after Odilon
- Martinez-Rojas was charged in a separate case in the Northern District of Georgia. Severiano was likewise charged in the Northern District of Georgia, which case was transferred to the Eastern District of New York for entry of his guilty plea, and the cases were consolidated for last week’s sentencing proceeding.
The investigation, prosecution, bilateral enforcement action and extraditions of the defendants apprehended in Mexico were coordinated through the U.S.-Mexico Bilateral Human Trafficking Enforcement Initiative. Since 2009, the Departments of Justice and Homeland Security have collaborated with Mexican law enforcement counterparts in a Bilateral Human Trafficking Enforcement Initiative to more effectively dismantle human trafficking networks operating across the U.S.-Mexico border, bring human traffickers to justice and restore the rights and dignity of human trafficking victims. These efforts have resulted in successful prosecutions in both Mexico and the United States, including U.S. federal prosecutions of over 170 defendants in multiple cases in New York, Georgia, Florida and Texas, in addition to numerous Mexican federal and state prosecutions of associated sex traffickers. The convictions in this case are also the latest development in the Eastern District of New York’s comprehensive anti-trafficking program, which has to date indicted more than 80 defendants, assisted more than 150 victims, including 45 minors, reunited 19 victims’ children with their mothers and secured restitution orders of over $4 million on behalf of trafficking victims.
The investigation of the Rendon-Reyes Trafficking Organization was led by HSI New York’s Trafficking in Persons Unit, the U.S. Attorney’s Office for the Eastern District of New York and the Department of Justice’s Human Trafficking Prosecution Unit, with assistance from HSI Mexico City Attaché Office, the Department of Justice’s Office of International Affairs, the State Department, Interpol and the New York City Police Department. Assistance was also provided by the FBI’s Atlanta Division and the U.S. Attorney’s Office for the Northern District of Georgia. The government of Mexico, including Mexico’s Procuraduría General de la República (“PGR”) and the Mexican Federal Police, also played a prominent role in advancing the bilateral anti-trafficking enforcement efforts in this case. Non-governmental victim service providers and advocates also dedicated efforts to restore and improve the lives of survivors of trafficking and their families. The case is being prosecuted by Assistant U.S. Attorneys Taryn A. Merkl and Margaret Lee of the Eastern District of New York and Deputy Director for Litigation Benjamin J. Hawk of the Civil Rights Division’s Human Trafficking Prosecution Unit.
Five Members of Mexican Sex Trafficking Organization Sentenced to PrisonRead the Press Release
Last week in federal district court in Brooklyn, New York, five members of a notorious international criminal organization, known as the Rendon-Reyes Trafficking Organization, were sentenced to prison terms of 15 to 25 years by United States District Court Judge Edward R. Korman. The amount to be paid in restitution will be announced at a later date. Three other defendants are set to be sentenced on Jan. 15. The defendants previously pled guilty to racketeering, sex trafficking, and other federal charges following their arrests in Mexico and the United States, where they were residing illegally. For over a decade, the Rendon-Reyes Trafficking Organization, based in Tenancingo, Tlaxcala, Mexico, smuggled numerous young women and girls from Mexico and Central America into the United States and forced them to engage in prostitution for the Organization’s profit, generating hundreds of thousands of dollars in criminal proceeds that were then laundered back to Mexico. The U.S. Attorney’s Office for the Eastern District of New York and the Department of Justice’s Civil Rights Division prosecuted this case.
“These well-deserved sentences reflect the gravity of the human trafficking crimes these defendants committed,” said Acting Attorney General Whitaker. “The defendants operated an extensive sex trafficking enterprise that preyed on vulnerable young women and girls, deceiving them with false promises, coercing their compliance, and compelling them into submission through beatings, threats, isolation, and intimidation. This prosecution is the result of strong partnerships among the Eastern District of New York, the Civil Right Division’s Human Trafficking Prosecution Unit, the New York Office of the Department of Homeland Security’s Homeland Security Investigations, and our Mexican law enforcement counterparts. The sentences imposed in this case demonstrate our unwavering commitment to working across international borders to dismantle transnational trafficking networks and seek justice on behalf of victims and survivors.”
“These sentencings are the latest chapter in this Office’s long-term commitment to eradicate human trafficking and all forms of modern-day slavery,” stated United States Attorney Donoghue. “The crimes committed by the members of the Rendon-Reyes Trafficking Organization were brutal and shocking, and I hope that the sentences give the victims in this case some sense of justice. We will not tolerate the exploitation of women and girls for profit or sexual servitude.”
“These individuals will now face the consequences of their callous criminal actions exploiting women and girls whom they forced into sex slavery for profit. The investigation and prosecution that led to today’s sentencings speak to the strong bilateral relationship between the United States and Mexico, in which both nations are committed to holding accountable those engaged in the ruthless act of human trafficking,” said Homeland Security Investigations Executive Associate Director Derek Benner. “Investigating human trafficking remains a priority for HSI, whose primary focus is to rescue victims and release them from the grip of their captors. HSI will continue leveraging all of its investigative capabilities to disrupt human trafficking syndicates no matter where in the world they operate.”
The defendants were sentenced to the following prison terms: Jovan Rendon-Reyes, aka Jovani, 32, of Mexico, was sentenced to 20 years in prison; Saul Rendon-Reyes, aka Satanico, 41, of Mexico, was sentenced to 15 years in prison; Felix Rojas, 48, of Mexico, was sentenced to 25 years in prison; Odilon Martinez-Rojas, aka Chino or Saul, 47, of Mexico, was sentenced to over 24 years in prison; and Severiano Martinez-Rojas, 53, of Mexico, was sentenced to over 24 years in prison. Severiano Martinez-Rojas was also sentenced in a related case in the Northern District of Georgia. Those proceedings were transferred to the Eastern District of New York for entry of the defendant’s guilty plea last year, and the cases were consolidated for last week’s sentencing. Defendants Jose Rendon-Garcia, aka Gusano, 35, of Mexico, Guillermina Rendon-Reyes, 48, of Mexico, and Francisco Rendon-Reyes, aka Pancho, 30, of Mexico, will be sentenced on Jan. 15.
According to documents filed in court, between December 2004 and November 2015, members of the Rendon-Reyes Organization, including the defendants, enriched themselves by forcing multiple young women and girls, including the 12 referenced in court documents, to perform countless commercial sex acts throughout the United States and Mexico. The Organization targeted vulnerable women and girls, some as young as 14, from impoverished areas of Mexico and Central America. Male members of the Organization typically used false promises of love and marriage to lure the victims into fraudulent romantic relationships. In some instances, they forcibly abducted the victims, and on one occasion, a victim’s child. Members of the Organization frequently arranged for others to smuggle the victims across the border and into the United States. Once in the United States, members of the Organization utilized different methods to force the victims to engage in prostitution, including severe and repeated beatings, sexual assaults, forced abortions, threats to the victims, their families and children, and psychological harm. Members of the Organization forced the victims to perform as many as 45 sex acts a night and took all of the prostitution proceeds, funneling the money back to Mexico.
The investigation, prosecution, bilateral enforcement action, and extraditions of the defendants apprehended in Mexico were coordinated through the U.S.-Mexico Bilateral Human Trafficking Enforcement Initiative. Since 2009, the Departments of Justice and Homeland Security have collaborated with Mexican law enforcement counterparts in a Bilateral Human Trafficking Enforcement Initiative to more effectively dismantle human trafficking networks operating across the U.S.-Mexico border, bring human traffickers to justice, and restore the rights and dignity of human trafficking victims. These efforts have resulted in successful prosecutions in both Mexico and the United States, including U.S. federal prosecutions of over 170 defendants in multiple cases in New York, Georgia, Florida, and Texas, in addition to numerous Mexican federal and state prosecutions of associated sex traffickers. The convictions in this case are also the latest development in the Eastern District of New York’s comprehensive anti-trafficking program, which has to date indicted more than 80 defendants, assisted more than 150 victims, including 45 minors, reunited 19 victims’ children with their mothers, and secured restitution orders of over $4 million on behalf of trafficking victims.
The investigation of the Rendon-Reyes Trafficking Organization was led by HSI New York’s Trafficking in Persons Unit, the U.S. Attorney’s Office for the Eastern District of New York, and the Department of Justice’s Human Trafficking Prosecution Unit, with assistance from HSI Mexico City Attaché Office, the Department of Justice’s Office of International Affairs, the State Department, Interpol and the New York City Police Department. Assistance was also provided by the FBI’s Atlanta Division, and the U.S. Attorney’s Office of the Northern District of Georgia. The government of Mexico, including Mexico’s Procuraduría General de la República and Policía Federal, also played a prominent role in advancing the bilateral anti-trafficking enforcement efforts in this case. Non-governmental victim service providers and advocates also dedicated efforts to restore and improve the lives of survivors of trafficking and their families.
Acting Attorney General Matthew Whitaker, Assistant Attorney General Eric Dreiband for the Civil Rights Division, U.S. Attorney Richard P. Donoghue of the Eastern District of New York, and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) Executive Associate Director Derek Benner made the announcement today.
The case against the Rendon-Reyes Trafficking Organization was investigated by HSI New York’s Trafficking in Persons Unit, and is being prosecuted by Assistant U.S. Attorneys Taryn A. Merkl and Margaret Lee of the Eastern District of New York and Deputy Director for Litigation Benjamin J. Hawk of the Civil Rights Division’s Human Trafficking Prosecution Unit.
Former Mexican State Attorney General Pleads Guilty to International Narcotics Distribution ConspiracyRead the Press Release
Earlier today at the federal courthouse in Brooklyn, Edgar Veytia, the former Attorney General for the State of Nayarit, Mexico, pleaded guilty before United States District Judge Carol Bagley Amon to one count of international conspiracy to manufacture and distribute heroin, cocaine, methamphetamine and marijuana, in violation of Title 21, United States Code, Sections 963, 960(b)(1)(A), 960(b)(1)(B)(ii), 960(b)(1)(G), 960(b)(1)(H) and 959(d), for his involvement in a 2013 to 2017 scheme to import illegal drugs from Mexico into the United States. When sentenced, Veytia faces up to life in prison.
Richard P. Donoghue, United States Attorney for the Eastern District of New York (EDNY), Brian Benczkowski, Assistant Attorney General for the Criminal Division of the U.S. Department of Justice, Ray Donovan, Special Agent-in-Charge, Drug Enforcement Administration, New York Division (DEA), David J. Downing, Special Agent-in-Charge, Los Angeles Division (DEA), Angel M. Melendez, Special Agent-in-Charge, Homeland Security Investigation, New York (HSI), and Matt DeSarno, Special Agent-in- Charge, Federal Bureau of Investigation, Washington, D.C. Field Office (FBI), announced the guilty plea.
The case was investigated by the DEA, FBI and HSI as part of the Organized Crime Drug Enforcement Task Forces (OCDETF). The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation and prosecution of major drug trafficking organizations. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
Veytia pleaded guilty to Count One of the Indictment, charging him with an international drug trafficking conspiracy to distribute heroin, cocaine, methamphetamine and marijuana from Mexico into the United States. According to court filings and facts presented during the plea proceeding, from January 2013 until February 2017, Veytia used his official position as State Attorney General to assist and abet drug trafficking organizations operating in the Mexican State of Nayarit in exchange for bribes. Veytia, who was responsible for Mexican state law enforcement authorities charged with investigating crime in Nayarit, used his official position to protect drug trafficking activities related to distribution into and within the United States and obstructed legitimate investigations and prosecutions of drug trafficking members in Mexico, for example by preventing the arrest of drug traffickers or unlawfully releasing those who had been arrested by Mexican law enforcement authorities.
The government’s case is being handled by Assistant United States Attorneys Craig Hereen, Ryan Harris, Alicia Washington and Temidayo Aganga-Williams of the EDNY, together with Deputy Chief of Litigation Amanda Liskamm and Trial Attorneys Jason Ruiz and Anthony Aminoff of the Narcotic and Dangerous Drug Section of the Justice Department’s Criminal Division.
The Defendant:
Edgar Veytia
Age: 48EDNY Docket No. 17-CR-115 (CBA)
District Court Enters Permanent Injunctions Shutting Down International Mail Fraud Scheme and Approving Civil Penalty of over $700,000Read the Press Release
The U.S. District Court for the Eastern District of New York has permanently barred 10 individuals and businesses from operating an alleged multi-million dollar international mail-fraud scheme. The consent decrees entered by United States District Judge Brian M. Cogan resolve civil fraud claims brought by the United States Attorney’s Office for the Eastern District of New York. Five of the defendants – Kimberly Anne Stamps of Gilbert, Arizona and her companies, KPS Productions, LLC, KPS Promotions, LLC, JKS Ventures, LLC and JJMK Enterprises, LLC – also agreed to pay a $726,539.20 penalty, the largest civil penalty ever collected in the EDNY for a violation of a United States Postal Service (USPS) cease and desist order against a mass mailer.
The United States alleged that beginning as early as 2012, the defendants operated a multi-million dollar mass-mailing scheme that preyed upon elderly and vulnerable individuals. From May 2015 to January 2018, the defendants mailed over 4.8 million solicitation letters to recipients in New York, throughout the United States and abroad falsely indicating that the recipients had won large cash prizes ranging from hundreds of thousands of dollars to millions of dollars, but were required to return processing fees of $20 to $50 to receive payment. The solicitations were sent on behalf of fictitious organizations and departments, such as “Global Servicing Center,” “Premium Award Center,” “Notification Committee” and “Winners Search Advisory,” and included fake signatures from fictitious corporate officers. The victims who paid the processing fees never received the promised cash prizes.
In one month alone, the defendants received over 16,000 responses to their schemes from victims worldwide. One victim of the defendants’ scheme, who resides in Brooklyn, returned more than 400 responses to defendants’ fraudulent solicitations, with total payments exceeding $10,000. The United States estimates that before the scheme was shut down, the defendants received more than $3 million in victim payments annually.
The foregoing are allegations, which the defendants dispute, and there has been no trial or any permanent judicial finding of fact or law.
“The defendants misled elderly and vulnerable victims by promising life-changing cash prizes that never arrived,” stated United States Attorney Donoghue. “The court-ordered injunctions permanently stop these schemes, and the civil penalty should serve as a warning to other fraudulent mass-mailers that we are committed to protecting the public from these schemes, and will hold the perpetrators and enablers of such schemes accountable.” Mr. Donoghue thanked the United States Postal Inspection Service for its investigatory support.
“Sweepstakes mailers thought they were winning the big prize. That is, until Postal Inspectors learned of the misleading solicitations being sent to unsuspecting victims,” stated Melisa Llosa, USPS, Inspector in Charge of the Phoenix Division. “As the law enforcement branch of the Postal Service, the U.S. Postal Inspection Service has a long history of successfully investigating these fraud schemes. Postal Inspectors work tirelessly to protect the American public from exploitation through the U.S. Mail.”
The case is being handled by Assistant U.S. Attorneys Evan P. Lestelle and John Vagelatos.
Additional information on the original enforcement actions and mass mailing schemes is available at: https://www.justice.gov/usao-edny/pr/justice-department-coordinates-nationwide-elder-fraud-sweep-more-250-defendants. Information about the Department of Justice’s Elder Fraud Initiative is available at www.justice.gov/elderjustice.
The Defendants:
KIMBERLY ANNE STAMPS
Age: 42
Gilbert, ArizonaYURIKO ESPINO RAMOS
Age: 30
Mesa, ArizonaBARBARA TRICKLE
Age: 74
Las Vegas, NevadaKPS Productions, LLC
KPS Promotions, LLC
JJMK Enterprises, LLC
JKS Ventures, LLC
YR Mail Services, LLC
Western Mailing Services
Cyber Solutions, Inc.
E.D.N.Y. Docket No. 18-CV-1106 (BMC)Armored Car Employee and Two Others Indicted for Theft of over $500,000 from Armored Car on Long IslandRead the Press Release
Earlier today, an indictment was unsealed in federal court in Central Islip charging Alexis Laguerra, Raymond Soto, also known as “Rambo,” and his father, Raymond Soto, also known as “Razor,” with bank larceny in connection with the theft of $510,000 from an armored car in Valley Stream on November 2, 2018. Raymond Soto (Sr.) was arrested this morning, and is scheduled to be arraigned this afternoon before Magistrate Judge A. Kathleen Tomlinson. Laguerra was previously arrested on a complaint, and was released on bail. Raymond Soto (Jr.) is a fugitive.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Patrick J. Ryder, Commissioner, Nassau County Police Department (NCPD), announced the charges.
“As alleged, Laguerra was a trusted employee of GardaWorld who used his knowledge of the armored car company’s operations to steal more than $500,000,” stated United States Attorney Donoghue. “I commend our partners in the FBI and Nassau County Police Department for their work bringing the defendants to justice and proving once again that crime does not pay.”
“As alleged, Alexis Laguerra broke his employer’s trust, conspiring with the Sotos to steal an armored car and more than half a million dollars,” stated FBI Assistant Director-in-Charge Sweeney. “As today’s arrests indicate, the FBI and our law enforcement partners are committed to finding those responsible for committing theft and ensuring that they face justice for their crimes.”
“The arrest of defendants Soto, Laguerra and Soto is another example of exceptional investigative work by multiple law enforcement agencies to bring closure to a major case,” stated NCPD Commissioner Ryder. “These defendants showed little regard for the safety of our residents, the bank and Garda employees, thus stealing over $500,000 from an armored car in a calculated heist. I would like to congratulate all members and agencies on a job well done.”
As alleged in the indictment and complaint, the defendants stole bank funds contained in three bags inside the GardaWorld armored car. Two employees of GardaWorld, Laguerra and John Doe #1, were working as the driver of the armored car and messenger, respectively. Their assignment that night was to empty ATM machines at bank branches and refill each ATM machine with “fresh money” of between $99,800 to $275,000. On November 2, 2018, upon arrival at a bank on Sunrise Highway in Valley Stream at 2:22 a.m., Laguerra and John Doe #1 exited the armored car and entered the bank. The unoccupied armored car was then stolen and later recovered nearby. Additionally, Laguerra and Raymond Soto (Jr.) had an agreement to destroy text messages they had exchanged setting up the theft. Earlier this morning, law enforcement officers executed a search warrant at the Sotos’ residence, and recovered an undetermined amount of cash believed to be proceeds of the theft.
The charges in the complaint and indictment are allegations, and the defendants are presumed innocent unless and until proven guilty. If convicted, the defendants face up to 10 years’ imprisonment on the bank larceny count. Defendants Laguerra and Raymond Soto (Jr.) also face up to 20 years’ imprisonment on the conspiracy to obstruct justice charge.
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, also known as “Rambo”
Age: 48
Richmond Hill, QueensRAYMOND SOTO, also known as “Razor”
Age: 28
Richmond Hill, QueensE.D.N.Y. Docket Nos. 18-MJ-1229 and 18-CR-678 (SJF)
Two Men Arrested for Conspiring to Distribute Heroin and FentanylRead the Press Release
A criminal complaint was unsealed today in federal court in Brooklyn charging Douglas Marra, also known as “Dougie,” and Joseph McClean, also known as “Max B,” with conspiracy to distribute and possess with intent to distribute heroin and fentanyl in Queens between January 2018 and September 2018. McClean and Marra were arrested earlier today, and their initial appearances are scheduled for this afternoon before United States Magistrate Judge Sanket J. Bulsara.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, Angel M. Melendez, Special Agent-in-Charge, U.S. Immigration and Customs Enforcement, Homeland Security Investigations, New York (HSI), 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, the defendants repeatedly sold heroin and fentanyl, seeking to profit from these highly addictive and potentially lethal drugs,” stated United States Attorney Donoghue. “With today’s arrests, the defendants will be held accountable for contributing to the opioid epidemic plaguing our communities.”
“It is not shocking that drug traffickers lure customers by linking their product to overdoses; but the blatant disregard to human life is unconscionable,” stated DEA Special Agent-in-Charge Donovan. “Today’s arrests sends a message to dealers that at some point we will catch you and in some cases the charges will be more than just distribution.”
“Our communities have been plagued with fentanyl related deaths, and it is because of individuals like those arrested today, those who prey on vulnerabilities with no regard for life,” stated HSI Special Agent-in-Charge Melendez. “McClean and Marra are now in custody, unable to keep pushing these deadly drugs as alleged, and law enforcement will continue working opioid investigations and removing relentless drug dealers from our city streets.”
As alleged in the complaint, in January 2018, HSI and NYPD began investigating a heroin and fentanyl drug trafficking organization in Queens. Following a drug overdose death in Queens, law enforcement interviewed an individual who stated that the overdose victim had obtained heroin from “Dougie” and that “Dougie” works with “Max B.” A subsequent search of the victim’s cellphone by law enforcement revealed contact information for Marra and McClean. Law enforcement then initiated a series of undercover drug transactions with Marra. During one of those transactions, Marra told an undercover police officer, “This stuff is hot. My friend died off of it.” Ultimately, when Marra was not able to provide drugs, McClean directed other suppliers to complete the narcotics transaction.
The charges in the complaint are allegations, and the defendants are presumed innocent unless and until proven guilty. If convicted of the charges, the defendants face a mandatory minimum of 10 years’ imprisonment and a maximum of life imprisonment.
The government’s case is being handled by the Office’s International Narcotics and Money Laundering Section. Assistant United States Attorneys Marcia M. Henry and Penelope J. Brady are in charge of the prosecution.
The Defendants:
Douglas Marra (also known as “Dougie”)
Age: 34
Glendale, QueensJoseph McClean (also known as “Max B”)
Age: 34
Glendale, QueensE.D.N.Y. Docket No. 18-MJ-1236
Southampton Couple Indicted for Elder Fraud SchemeRead the Press Release
An indictment was unsealed today in federal court in Central Islip charging John Ficarra and his wife Mara Ficarra with conspiracy to commit mail, wire and bank fraud and conspiracy to commit money laundering. The Ficarras were arrested this morning, and will be arraigned this afternoon before United States Magistrate Judge Arlene R. Lindsay.
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.
“The defendants preyed upon some of the most vulnerable members of our community, stealing their personal information and defrauding financial institutions,” stated United States Attorney Donoghue. “Protecting the elderly from financial fraud remains a priority of the Department of Justice.” Mr. Donoghue also expressed his appreciation to the Southampton Town Police Department for its assistance with the investigation and today’s arrests.
“The Ficarra’s exploited victims by fraudulently using their bank routing numbers and bank account number to produce counterfeit checks,” stated USPIS Inspector-in-Charge Bartlett. “The checks were then deposited into accounts they controlled. Once the checks cleared, they withdrew the funds to the tune of more than $1 million.”
The Ficarras owned, operated and held senior management positions in various companies, including Remington Biographies, Inc., Remington Bookkeepers, Inc., and Mentorship America1, Inc. (collectively, the “Remington Entities”). The Remington Entities purported to publish reference publications containing biographical information of individuals across the country. Those publications included “Inspiring the Youth of America” and “The Remington Registry of Outstanding Professionals.”
As alleged in the indictment, from 2013 to the present, the Ficarras caused letters and pamphlets to be mailed to victims, primarily the elderly, indicating that the victim’s biography would be published in one of the reference publications. The letters, addressed “Dear Nominee,” indicated, “Your 2 books and your plaque are paid for in full and ready for delivery. Please send a check for $14.00 dollars for shipping and handling.” The pamphlet described the publication and stated in part, “The Remington Registry of Outstanding Professionals is more than a website, more than a book, more than a Biographical index and certainly more than a who’s who. It is the ultimate expression of achievements, hardships, and dedication that professionals have made in their lives and careers…. Sit back and be ready for a wonderful experience.” The mailings induced thousands of victims to send checks as payment for inclusion in the reference publications. The Ficarras then used the routing and bank account information on those checks to produce fraudulent checks for larger dollar amounts, which they then deposited into bank accounts they controlled at Citibank, Everbank, HSBC, JP Morgan Chase and Wells Fargo, among other financial institutions. The Ficarras promptly withdrew cash from the accounts, stealing more than $1 million dollars from the victim subscribers and financial institutions.
The charges in the indictment are allegations, and the defendants are presumed innocent unless and until proven guilty.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorney Catherine M. Mirabile is in charge of the prosecution, with the assistance of Assistant United States Attorney Madeline O’Connor of the Office’s Civil Division, which is responsible for the forfeiture of assets.
The Defendants:
JOHN FICARRA
Age: 53
Southampton, NYMARA FICARRA
Age: 54
Southampton, NYE.D.N.Y. Docket No. 18-CR-679 (JS)
Long Island Man Sentenced to 56 Months’ Imprisonment for Defrauding Investors of $62 Million in a Real Estate Ponzi SchemeRead the Press Release
Earlier today, at the federal courthouse in Central Islip, Gershon Barkany was sentenced by United States District Judge Joseph F. Bianco to 56 months’ imprisonment to be followed by three years’ supervised release for orchestrating a Ponzi scheme over four years that caused investors to lose approximately $62 million. Barkany was also ordered to pay restitution in an amount to be determined later and forfeiture of $62 million. Barkany pled guilty to wire fraud on June 26, 2013.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, announced the sentence.
“Today’s sentence is the very real consequence for all the lies, forgeries and fabrications that Barkany used to steal from investors who thought they were putting their money into safe real estate deals,” stated United States Attorney Donoghue. “This Office will vigorously prosecute those who betray their clients’ trust for their own financial self-interest.” Mr. Donoghue expressed his appreciation to the Federal Bureau of Investigation, New York Field Office for its outstanding investigative work during the investigation.
Between December 2009 and March 2013, Barkany induced more than 10 victims to invest approximately $62 million by promising to use their money in “risk-free” deals to purchase, and then immediately re-sell at a profit, commercial real estate properties located in New York City and New Jersey. No such deals existed, and the investors lost their entire investments. Relying on Barkany’s representations, one victim invested $46.5 million as a down payment on an office building in Manhattan, a hotel in Atlantic City and properties in the Bronx and Queens. In fact, those real estate deals did not exist, and the investments were lost.
Shortly after Barkany’s arrest on March 28, 2013, two additional victims contacted the FBI and reported that they had been defrauded by Barkany. Barkany induced those investors to give him approximately $7.5 million by promising to use their money in a “risk-free” deal to purchase, and then immediately re-sell at a profit, an office building in Manhattan. In furtherance of the scheme, Barkany created fraudulent documents, including a purchase agreement purportedly signed by the seller of the office building and an escrow agreement allegedly signed by a third-party escrow agent. Once again, the promised deal did not exist, and the investment was lost.
Barkany diverted some of the funds he received to pay victims whom he had earlier defrauded, and used approximately $7.8 million of investors’ monies for personal expenses and gambling.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorneys Christopher Caffarone and Diane Leonardo are in charge of the prosecution.
The Defendant:
GERSHON BARKANY
Age: 34
Woodmere, New YorkE.D.N.Y. Docket No. 13-CR-362 (JFB)
Former CFO at Long Island Mortgage Lender Sentenced to 18 Months’ Imprisonment for FraudRead the Press Release
Earlier today, at the federal courthouse in Central Islip, Edward Sypher, Jr., formerly the Chief Financial Officer of Long Island mortgage lender Vanguard Funding, LLC (Vanguard), was sentenced by United States District Judge Sandra J. Feuerstein to 18 months’ imprisonment to be followed by three years’ supervised release. The amount of restitution will be determined by the Court at a later date. Sypher was also ordered to pay $22,150.45 in forfeiture. In February 2018, Sypher pleaded guilty to conspiring to commit wire and bank fraud in connection with the diversion of warehouse loans that Vanguard had fraudulently obtained purportedly to fund home mortgages and mortgage refinancing.
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 Maria T. Vullo, Superintendent, New York State Department of Financial Services (DFS), announced the sentence.
“Edward Sypher, Jr., has been punished for deceiving his banking partners in order to divert millions of dollars to his own benefit and that of other Vanguard executives,” stated United States Attorney Donoghue. “This Office, working hand-in-hand with our law enforcement partners, will continue to vigorously investigate and prosecute business executives who choose to commit fraud as a means of getting ahead at the expense of the businesses and residents of our district.”
“When fraudsters treat investors like their own personal ATMs, using funds invested in good faith to line their own pockets, pay for personal expenses, and repay other fraudulent loans, confidence in the integrity of our financial systems suffers,” stated FBI Assistant-Director-in-Charge Sweeney. “Thanks to the diligent work of the FBI and our partners, Sypher will be held accountable for his crimes.”
“DFS is proud to have worked with the U.S. Attorney’s office and other law enforcement partners to bring this defendant to justice,” said DFS Superintendent Vullo. “We will continue to combat the serious issue of fraud in order to safeguard the industry and protect consumers.”
Vanguard was a 33-branch, mortgage lending institution licensed in California, Connecticut, Florida, Georgia, Maryland, Massachusetts, North Carolina, New Jersey, New York, Pennsylvania and Washington. Between August 2015 and March 2017, Sypher and his co-conspirators at Vanguard engaged in a multi-million dollar fraud scheme by falsely representing that the loan proceeds would fund specific mortgages, or refinance specific mortgages, for Vanguard clients. Instead, Sypher and his co-conspirators diverted the funds to pay personal expenses and compensation, and to pay off loans they had previously obtained through fraudulent loan applications.
On December 10, 2018, Matthew T. Voss, Vanguard’s former Chief Operating Officer, was sentenced to 24 months’ imprisonment for his role in the scheme.
The government’s case is being handled by the Office’s Business and Securities Fraud Section. Assistant United States Attorneys Whitman G.S. Knapp and Elizabeth Losey Macchiaverna are in charge of the prosecution.
The Defendant:
EDWARD SYPHER, JR.
Age: 41
Scarsdale, New YorkE.D.N.Y. Docket No. 18-CR-028 (SJF)
MS-13 Gang Member Sentenced to 25 Years’ Imprisonment for Murder and Attempted Murder on Long IslandRead the Press Release
Earlier today, at the federal courthouse in Central Islip, Elmer Alexander Lopez, a member of the Centrales Locos Salvatruchas clique of La Mara Salvatrucha, also known as the MS-13, a transnational criminal organization, was sentenced by United States District Judge Joseph F. Bianco to 25 years’ imprisonment. The sentencing follows Lopez’s guilty plea to racketeering charges relating to his participation in the June 3, 2016 murder of Jose Pena and the July 3, 2016 attempted murder of a suspected rival gang member. Upon completion of his sentence, Lopez, an illegal alien from El Salvador, faces deportation from the United States.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), Geraldine Hart, Commissioner, Suffolk County Police Department (SCPD), and Patrick J. Ryder, Commissioner, Nassau County Police Department (NCPD), announced the sentence.
“With today’s sentence, Elmer Lopez has been held responsible for the brutal acts of violence he committed on behalf of MS-13 to enforce its vicious rules,” stated United States Attorney Donoghue. “The defendant’s conviction, and the ongoing prosecutions of dozens of other MS-13 members by our Office working with the FBI’s Long Island Gang Task Force, reflects the ongoing commitment to eliminate this lawless criminal organization.”
“At just 21 years old, Elmer Lopez is already responsible for the vicious murder of a fellow MS-13 member and the attempted murder of a rival. Our communities are safer when criminals like Lopez are behind bars,” stated FBI Assistant Director-in-Charge Sweeney. “As today’s sentence demonstrates, the FBI Long Island Gang Task Force and our law enforcement partners will continue to put pressure on MS-13 until we reach our ultimate goal of eradicating this deadly gang from our community.”
“This sentencing will ensure that yet another violent member of MS-13 will be imprisoned for his part in a vicious murder and an attempted murder,” stated SCPD Commissioner Hart. “This case highlights the malicious nature of MS-13 and the department’s dedication to ridding our communities of their violence. I would like to thank the Eastern District and the Long Island Gang Task Force for their partnership and perseverance in holding gang members accountable for their incomprehensible crimes.”
“The sentencing of defendant Lopez on murder and attempted murder charges speaks volumes regarding the Long Island Gang Task Force, its affiliated law enforcement agencies and its dedicated investigators,” stated NCPD Commissioner Ryder. “All too often this gang violence spills into our neighborhoods and places our families and communities at risk. MS-13 and their criminal tactics can never be tolerated as law enforcement is working tirelessly to keep our communities safe and free from their violence.”
Lopez and several MS-13 co-conspirators who have been charged in this district decided to kill Pena, also a member of the MS-13, because he was suspected of violating gang rules by cooperating with law enforcement after his arrest and because he might be homosexual. On June 3, 2016, after consulting with MS-13 leadership in El Salvador, Lopez and his co-conspirators lured Pena into a car and drove to a secluded wooded area in Brentwood where they attacked him, taking turns stabbing and slashing him with knives until he was dead. Pena’s body was discovered on October 17, 2016, more than four months after his murder.
At his guilty plea proceeding, Lopez admitted that approximately one month after murdering Pena, he and other MS-13 members attempted to kill a suspected member of the Goon Squad, rival gang in Brentwood. On July 3, 2016, a man identified as John Doe #4 in the indictment was playing basketball with others on Lukens Avenue. Lopez and two MS-13 co-conspirators saw the group and suspected they were members of the Goon Squad. One of the MS-13 co-conspirators shot at the group, striking John Doe #4 in the shoulder. Wounded, John Doe #4 received medical treatment and survived.
Today’s sentencing is the latest in a series of federal prosecutions by the United States Attorney’s Office for the Eastern District of New York targeting members of the MS-13, a violent transnational criminal organization. MS-13’s leadership is based in El Salvador and Honduras, but the gang has thousands of members across the United States, comprised primarily of immigrants from Central America. With numerous branches, or “cliques,” MS-13 is the largest and most violent street gang on Long Island. Since 2003, hundreds of MS-13 members, including dozens of clique leaders, have been convicted on federal felony charges in the Eastern District. A majority of those MS-13 members have been convicted on federal racketeering charges for participating in murders, attempted murders and assaults. Since 2010, this Office has obtained indictments charging MS-13 members with carrying out more than 45 murders in the Eastern District of New York, and has convicted dozens of MS-13 leaders and members in connection with those murders. These prosecutions are the product of investigations led by the FBI’s Long Island Gang Task Force, comprising agents and officers of the FBI, SCPD, NCPD, Nassau County Sheriff’s Department, Suffolk County Probation, Suffolk County Sheriff’s Department, Rockville Centre Police Department, the New York State Police and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorneys John J. Durham, Paul G. Scotti, Michael T. Keilty, Raymond A. Tierney and Justina L. Geraci are in charge of the prosecution.
The Defendant:
ELMER ALEXANDER LOPEZ (also known as “Smiley”)
Age: 21
Central Islip, New YorkE.D.N.Y. Docket No. 16-CR-403 (S-4) (JFB)
Queens Man Sentenced to More Than 30 Years’ Imprisonment for Murdering Employee of Long Island Convenience Store During a RobberyRead the Press Release
Earlier today, at the federal courthouse in Central Islip, Jermaine Jackson was sentenced by United States District Judge Sandra J. Feuerstein to 365 months’ imprisonment, to be followed by five years’ supervised release, for the murder of Edwin Lopez, an employee of a convenience store in Valley Stream, New York. Jackson pleaded guilty to the charge in December 2017.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, Ashan M. Benedict, Special Agent-in-Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Patrick J. Ryder, Commissioner, Nassau County Police Department (NCPD), and James P. O’Neill, Commissioner, New York City Police Department (NYPD), announced the sentence.
“Jackson senselessly murdered a hard-working man who was just trying to support his wife and teenage daughter. While this sentence cannot return Mr. Lopez to his family and community, it will ensure that others will be protected from Jackson for decades to come and it will make other criminals think twice before taking a life,” stated United States Attorney Donoghue. “It is my hope that today’s sentence brings some measure of closure for the Lopez family.”
“The actions of Mr. Jackson brought an unknowable grief to the Lopez family that will be felt for years to come,” stated ATF Special Agent-in-Charge Benedict. “Today’s sentence provides some semblance of closure to a family that never deserved to be touched by this senseless violence. May Mr. Jackson spend every minute of his sentence pondering his grievous actions and the toll they took on an innocent family. I would like to thank our partners in the NCPD and NYPD that stand shoulder to shoulder with ATF in the fight against violent criminals like Mr. Jackson. I would also like to thank the United States Attorney’s Office for their work in prosecuting the case.”
“The sentencing today of defendant Jermaine Jackson for murder and robbery is a clear example of how unjust criminal activity will be dealt with by law enforcement,” stated NCPD Commissioner Ryder. “Although no sentence is ever enough, hopefully this will bring some closure to the Lopez family. I would also like to credit all of the agencies and members involved during this investigation on a job well done.”
On December 16, 2016, Jackson and a coconspirator entered the Al Mini Market wearing a mask over the lower portion of his face and brandishing a semi-automatic handgun. Jackson held the store’s employees at gunpoint while the coconspirator attempted to steal money from the cash register. Lopez, a store employee, grabbed a bottle and resisted the robbery at which point Jackson shot him once. Jackson then attempted to leave the store but Lopez chased him. Jackson turned around and shot Lopez several more times, killing him. Jackson and his coconspirator fled, empty-handed.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorney Christopher Caffarone is in charge of the prosecution.
The Defendant:
JERMAINE JACKSON
Age: 25
Queens Village, New YorkE.D.N.Y. Docket No. 17-CR-140 (SJF)
Long Island Man Sentenced to 90 Months’ Imprisonment for Fentanyl TraffickingRead the Press Release
Earlier today, in federal court in Central Islip, Jamal Brown was sentenced by United States District Judge Joseph F. Bianco to 90 months’ imprisonment for distributing and possessing with intent to distribute more than 40 grams of fentanyl between July 2017 and February 2018. Brown pleaded guilty to the charge in May 2018.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, and Ray Donovan, Special Agent-in-Charge, U.S. Drug Enforcement Administration, New York Division (DEA), announced the sentence.
“Brown preyed on vulnerable addicts to enrich himself, exposing them to significant risk of overdose with fentanyl, a drug that is a leading factor in the opioid crisis plaguing Long Island and the United States,” stated United States Attorney Donoghue. “To facilitate his illegal drug distribution, Brown even involved his teenage brother. Thanks to the outstanding work of our prosecutors and law enforcement partners, Brown has now been held accountable.” Mr. Donoghue also expressed his grateful appreciation to the Bureau of Alcohol, Tobacco, Firearms and Explosives for its assistance during the investigation and the DEA’s Long Island Heroin Task Force, which is comprised of the Nassau County Police Department, Suffolk County Police Department and New York State Police.
“Drug trafficking is inevitably linked to corruption, crime and addiction,” stated DEA Special Agent-in-Charge Donovan. “Jamal Brown turned his younger brother into a drug dealer, exposed his newborn child to fentanyl and encouraged drug use by addicts seeking treatment. Today’s sentencing is a result of the hard work and collaboration between the Heroin Enforcement Team, ATF and the U.S. Attorney’s Office EDNY.”
According to court filings, sentencing submissions and facts presented during court proceedings, between July 2017 and February 2018, Brown possessed and sold more than 40 grams of fentanyl, along with quantities of cocaine, which he stored at locations in Bay Shore and Huntington Station, New York. As part of his drug-trafficking operation, Brown used his 17-year-old brother to sell fentanyl and cocaine for him and to store sale proceeds, which he gave to Brown. Telephone calls intercepted over a court-authorized wiretap revealed that Brown also relied on an individual – who had told Brown of his struggles with addiction and of his plan to enter a rehabilitation facility – to transport narcotics and pick up drug sale proceeds.
On February 27, 2018, search warrants executed at Brown’s Long Island drug locations resulted in the recovery of more than 76 grams of fentanyl, more than 150 grams of cocaine, a .32 caliber Smith and Wesson handgun, ammunition and other evidence of drug trafficking. At the time of the execution of the search warrants, Brown’s newborn child was inside the Huntington Station location where approximately 10 grams of fentanyl were recovered.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorney Bradley T. King is in charge of the prosecution.
The Defendant:
JAMAL BROWN
Age: 26
Huntington Station, New York
E.D.N.Y. Docket No. 18-CR-182 (JFB)Former Broker-Dealer Pleads Guilty to Stock ManipulationRead the Press Release
Earlier today, in federal court in Central Islip, Anthony Vassallo, a former broker-dealer who was a manager at Plainview-based Elite Stock Research (ESR) and who subsequently worked at Melville-based My Street Research and related companies (the “boiler room”), pleaded guilty to conspiracy to commit securities fraud in connection with the sale of the stock of two publicly traded companies, CES Synergies, Inc. (CESX), and First Choice Health Care Solutions, Inc. (FCHS). When sentenced, Vassallo faces a maximum of five years’ imprisonment.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, and William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the guilty plea. Mr. Donoghue expressed his appreciation to the United States Securities and Exchange Commission for its significant cooperation and assistance in the investigation.
As alleged in court papers, between May 2013 and June 2016, Vassallo and his co-defendants engaged in a scheme to defraud investors and potential investors in CESX and FCHS by artificially controlling the price and volume of their traded shares by generating price movements and by material misrepresentations and omissions in communications with investors. Vassallo and his co-defendants also fraudulently concealed their control of shares of CESX and FCHS that were held in brokerage accounts in the names of other individuals or entities.
Vassallo is among 16 defendants who were charged in July 2017 in connection with a $147 million illegal stock manipulation scheme, and he is the 11th defendant to plead guilty. The defendants who have pleaded guilty are awaiting sentencing.
The government’s case is being handled by the Office’s Business and Securities Fraud Section. Assistant United States Attorneys Alicyn L. Cooley, Patrick T. Hein and Whitman G.S. Knapp are in charge of the prosecution. Assistant United States Attorney Tanisha R. Payne of the Office’s Asset Forfeiture Section is handling the forfeiture matters.
The Defendant:
ANTHONY VASSALLO
Age: 55
Farmingdale, New YorkE.D.N.Y. Docket No. 17-CR-372 (S-1)
The Defendants Who Previously Pleaded Guilty:
RONALD HARDY
Age: 42
Port Jefferson, New YorkMCARTHUR JEAN, also known as “John McArthur”
Age: 34
Dix Hills, New YorkERIK MATZ
Age: 44
Mt. Sinai, New YorkBRIAN HEEPKE, also known as “Brian Targis”
Age: 36
Farmingdale, New YorkDENNIS VERDEROSA
Age: 67
Coram, New YorkEMIN L. COHEN, also known as “Ian Grant”
Age: 33
Coram, New YorkPAUL EWER
Age: 36
Massapequa, New YorkASHLEY ANTOS
Age: 26
Central Islip, New YorkSERGIO RAMIREZ
Age: 44
East Meadow, New YorkROBERT GILBERT
Age: 51
Cold Spring Harbor, New YorkE.D.N.Y. Docket No. 17-CR-372
Colombian Fugitive Extradited to United States to Face Charges for International Cocaine Distribution ConspiracyRead the Press Release
Carlos Andres Gallo Rodriguez was arraigned today in federal court in Brooklyn before United States Magistrate Judge Steven L. Tiscione on an indictment charging him with conspiring to import and distribute cocaine into the United States. The defendant was arrested in Colombia on a provisional arrest request from the United States and subsequently extradited from Colombia to the United States on December 13, 2018. Magistrate Judge Tiscione ordered Gallo Rodriguez detained pending 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 extradition and charges.
“As alleged, the defendant conspired with others to import a massive amount of cocaine that would be distributed in the United States, endangering countless lives,” stated United States Attorney Donoghue. “This Office is committed to working closely with our partners here and abroad to dismantle drug networks and bring traffickers to justice.” Mr. Donoghue extended his grateful appreciation to the DEA offices on Long Island and in Mexico City, the United States Department of State, and the Homeland Security Investigations (HSI) Office in Tucson, Arizona. Mr. Donoghue also expressed his appreciation to the United States Marshals Service (USMS), the DEA Cartagena Country Office, the Colombian National Police and the Government of Colombia.
“Drug traffickers’ ingenuity in smuggling methods never ceases to amaze me,” stated DEA Special Agent-in-Charge Donovan. “DEA has seen drugs concealed in hundreds of ways, for example: furniture, machinery, produce, wheelchairs, puppies and in this case rubber-encased steel bumpers. This arrest and extradition is a message to drug suppliers overseas that law enforcement is committed to bringing to justice those responsible for flooding our streets with illegal drugs.”
According to the extradition affidavit, Gallo Rodriguez organized the shipment of approximately two tons of cocaine from Colombia to Mexico, with its ultimate distribution to be in the United States. In December 2016, law enforcement authorities seized the cocaine at a warehouse owned by Gallo Rodriguez in Sibate, Colombia. The cocaine was hidden inside rubber-encased steel bumpers, which are commonly used on shipping vessels. Gallo Rodriguez oversaw the importation of rubber from Mexico and the preparation of the steel bumpers containing the cocaine. He also documented the shipment to appear to be a legitimate commercial import-export transaction.
The investigation was led by the New York Strike Force, a crime-fighting unit comprising federal, state and local law enforcement agencies supported by the Organized Crime Drug Enforcement Task Force and the New York/New Jersey High Intensity Drug Trafficking Area. The Strike Force is based at the DEA’s New York Division and includes agents and officers of the DEA, New York City Police Department, New York State Police, HSI, U.S. Internal Revenue Service Criminal Investigation Division, Bureau of Alcohol, Tobacco, Firearms and Explosives, U.S. Customs and Border Protection, U.S. Secret Service, USMS, New York National Guard, Clarkstown Police Department, U.S. Coast Guard, Port Washington Police Department and New York State Department of Corrections and Community Supervision.
The charges in the indictment are allegations and the defendant is presumed innocent unless and until proven guilty. If convicted of the crimes charged, the defendant faces a mandatory minimum sentence of 10 years’ imprisonment and up to life imprisonment.
The government’s case is being handled by the Office’s International Narcotics and Money Laundering Section. The Justice Department’s Office of International Affairs handled the extradition in this matter. Assistant United States Attorneys Soumya Dayananda and Erin Reid are in charge of the prosecution.
The Defendant:
CARLOS ANDRES GALLO RODRIGUEZ
Age: 39
ColombiaE.D.N.Y. Docket No. 17-CR-213 (MJB)
Members and Associates of the Gambino and Bonanno Organized Crime Families Sentenced for RacketeeringRead the Press Release
Earlier today, in federal court in Central Islip, Frank “Frankie Boy” Salerno, a soldier in the Bonanno organized crime family of La Cosa Nostra (the “Bonanno family”), was sentenced to 60 months’ imprisonment for racketeering conspiracy. Previously, on December 6, 2018, John “Johnny Boy” Ambrosio, an acting captain in the Gambino organized crime family of La Cosa Nostra (the “Gambino family”), and Anthony Saladino, an associate of the Gambino family, were sentenced to 51 and 63 months’ imprisonment, respectively, for racketeering conspiracy. Ambrosio, Saladino and Salerno were the last of seven defendants to be sentenced on a superseding indictment charging Gambino and Bonanno members and associates with racketeering conspiracy, including predicate acts of drug trafficking, loan sharking, gambling and obstruction of justice. The sentencing proceedings were held before United States District Judge Sandra J. Feuerstein.
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, U.S. Immigration and Customs Enforcement, Homeland Security Investigations, New York (HSI); and Geraldine Hart, Commissioner, Suffolk County Police Department (SCPD), announced the sentencings.
“With these sentences, each of the seven defendants has now been punished for continuing organized crime’s corrosive influence on Long Island,” stated United States Attorney Donoghue. “There should be no doubt that putting a stop to the criminal activities of La Cosa Nostra continues to be a priority of this Office and our law enforcement partners.” Mr. Donoghue expressed his grateful appreciation to the New York City Police Department for its assistance in the investigation.
“Organized crime continues to plague our communities with violence, coercion, and intimidation,” stated FBI Assistant Director-in-Charge Sweeney. “The mobsters grow richer while their victims live in fear as they struggle to make payments while dealing with daily threats. Today’s sentences demonstrate that the shirt button of a ‘made man’ is no match for a badge – the FBI/NYPD Joint Organized Crime Task Force is committed to investigating and rooting out organized crime wherever it occurs, and the perpetrators will be brought to justice.”
“These individuals were caught up in an elaborate racketeering conspiracy; acting as loan sharks, operating underground gambling rings and trafficking narcotics,” stated HSI Special Agent-in-Charge Melendez. “Today’s sentencing should serve as notice to those pursue this criminal lifestyle, that law enforcement is diligently investigating these cases and you will be caught and serve time for your actions.”
“This case is yet another example of the dedicated collaboration among law enforcement agencies in the region to send a message that law enforcement is working together to halt the operations of La Cosa Nostra and their illegal activities,” stated SCPD Commissioner Hart. “I commend the Eastern District of New York for ensuring these individuals pay for their crimes.”
Between January 2014 and December 2017, Ambrosio and his co-defendants engaged in a racketeering conspiracy. Salerno routinely collected payments from extortionate loans and gambling-related debts, often at the direction of Ambrosio. In one intercepted conversation, Saladino and Thomas Anzalone discussed unpaid gambling debts, during which Saladino said he would give the debtor “something to be scared about.” On another occasion, Saladino admitted to an undercover agent that he and Salerno were involved in organized crime, stating that Salerno “has got that thing (pointing to his shirt button),” indicating membership in organized crime. In another intercepted call, Saladino recounted for Ambrosio a collection effort in which he threatened an individual, saying “when I get my hands around your your f-----g neck, everything is going to pop out of your ears.” Ambrosio also was involved with a variety of gambling operations, including illegal poker games, electronic gaming machines and internet sports betting, with Salerno, Saladino, Alessandro Damelio and Joseph Durso being responsible for many of the day-to-day operations. Anzalone, Damelio, Durso, Saladino and Salerno distributed a variety of narcotics, including cocaine, marijuana and Xanax. When Ambrosio and his co-conspirators were arrested on December 12, 2017, law enforcement agents executed search warrants at various locations, including a storage facility in Nassau County, and recovered gambling and loan sharking records, electronic gaming machines, narcotics and drug paraphernalia and numerous firearms, including two AR-15 rifles, a .38 caliber revolver and a sawed-off shotgun.
As part of his sentence, Ambrosio will forfeit $100,000, including $66,116 in cash that was seized from his residence in Huntington, New York.
Previously, co-defendant Anzalone was sentenced on July 24, 2018 to 34 months’ imprisonment, Anthony Rodolico was sentenced on November 5, 2018 to one year in prison and Damelio and Durso were sentenced on July 11, 2018 and November 5, 2018 respectively to two months’ imprisonment.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorney Artie McConnell is in charge of the prosecution.
Defendant:
FRANK SALERNO (also known as “Frankie Boy”)
Age: 43
Queens, New YorkPreviously Sentenced Defendants:
JOHN AMBROSIO (also known as “Johnny Boy”)
Age: 74
Huntington, New YorkANTHONY SALADINO
Age: 67
Glen Cove, New YorkTHOMAS ANZALONE
Age: 44
Queens, New YorkALESSANDRO DAMELIO (also known as “Sandro”)
Age: 49
Queens, New YorkJOSEPH DURSO
Age: 26
Glen Cove, New YorkANTHONY RODOLICO
Age: 46
Huntington, New YorkE.D.N.Y. Docket No. 17-CR-522 (S-1) (SJF)
Brooklyn Man Indicted for Sex Trafficking and Possessing a FirearmRead the Press Release
An indictment was unsealed today in federal court in Brooklyn charging Joseph Harris with sex trafficking, brandishing firearms in furtherance of sex trafficking, promoting prostitution and being a felon in possession of a firearm. The defendant’s arraignment is scheduled for this afternoon before United States Magistrate Judge Steven L. Tiscione.
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’Neil, Commissioner, New York City Police Department (NYPD), announced the charges.
“As alleged, Joseph Harris engaged in sex trafficking of adult and minor victims, forcing them to prostitute themselves to line his pockets,” stated United States Attorney Donoghue. “This Office will continue to work diligently with the FBI and our local law enforcement partners to prosecute those who force their victims into sexual slavery.” Mr. Donoghue expressed his grateful appreciation to the Kings County District Attorney’s Office for their assistance in the case.
“As alleged, Harris’s vile actions dehumanized his victims, stripping them of their innocence and forcing them into a life of brutality and neglect – and putting them at risk of further harm from sexual exploitation and narcotics addiction,” stated FBI Assistant Director-in-Charge Sweeney. “Today’s indictment demonstrates the FBI’s commitment to working with our law enforcement partners to ensure justice for our most vulnerable victims, and to pursue and apprehend those who abuse and exploit children for their own personal gain.”
“Today’s charges further affirm the NYPD’s unwavering commitment to protecting the survivors of sex trafficking and gun violence,” stated NYPD Commissioner O’Neill. “These crimes – especially those involving minors – are among the most heinous in our society. Our job is to ensure that anyone who would seek to profit through the abuse and exploitation of another human being be brought to justice swiftly and successfully. To that end, I thank and commend the U.S. Attorney’s Office for the Eastern District, the FBI and the Brooklyn District Attorney’s Office for contributing to this critical case. Together, we will continue to make the safest large city in the nation even safer.”
As alleged in the indictment and court documents, from July 2017 until his arrest in May 2018, Harris used violence and threats to force women and young girls into prostitution, promoting and managing his business over the Internet and on social media. On May 5, 2018, NYPD officers responded to 911 calls reporting that “girls” were being held against their will by a male later identified as the defendant at an apartment building on St. Marks Avenue in Brooklyn. At the apartment, officers found two adult women and a 16-year-old girl in a basement apartment. Subsequent investigation revealed that Harris had been sex-trafficking numerous victims, including the three females in the apartment basement and another minor female, age 14. Harris regularly carried a firearm and demanded that his victims give him all the money they made. Harris also engaged in sexual intercourse with his victims, including the minors, and provided them with narcotics. A handgun was recovered from the defendant’s residence shortly before his arrest.
If convicted, Harris faces a mandatory minimum term of 15 years’ imprisonment and a maximum of life on the sex trafficking charge, and a mandatory consecutive term of seven years’ imprisonment on the charge of brandishing a firearm during a crime of violence.
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 Civil Rights Unit, in collaboration with the Brooklyn Human Trafficking Task Force and Kings County District Attorney’s Office. Assistant United States Attorney Erin Reid and Assistant District Attorney Sherman Jones from the Kings County District Attorney’s Office are in charge of the prosecution.
The Defendant:
JOSEPH HARRIS (also known as “Luis Santana” and “Joey Moscato”)
Age: 37
Brooklyn, New YorkE.D.N.Y. Docket No. 18-CR-616 (LDH)
Former Senior Employee at FDIC Convicted of Embezzling Confidential DocumentsRead the Press Release
Following six days of trial, a federal jury in Brooklyn returned a guilty verdict today against Allison Aytes on both counts of an indictment charging her with theft of government property in the possession of the Federal Deposit Insurance Corporation (FDIC). When sentenced by United States District Judge Sterling Johnson, Jr., Aytes faces up to 20 years’ imprisonment.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, and Jay N. Lerner, Inspector General, FDIC, announced the verdict.
“Aytes embezzled sensitive and confidential information about banks that was the property of the United States government shortly before she resigned from the FDIC to seek job opportunities at those very same banks,” stated United States Attorney Donoghue. “With today’s verdict, Aytes has been held accountable for abusing her position of trust for personal gain.”
“This case makes clear that those who compromise sensitive FDIC information will be held accountable for their actions,” stated FDIC Inspector General Lerner. “We are committed to investigating such breaches of public trust, and to protecting the integrity of confidential data maintained by the agency.”
At the time of her resignation in September 2015, Aytes was a senior employee in the FDIC’s Office of Complex Financial Institutions in New York. The Office was created after passage of the Dodd-Frank Wall Street Reform and Consumer Protection Act to oversee and conduct, if necessary, an orderly bankruptcy of the world’s largest banks and financial institutions. Each of these banks and financial institutions is required to file resolution plans, referred to as “living wills,” with the FDIC. The plans contain confidential information about the bank, including its assets, business operations, data center locations, critical vendors, agreements with other banks and potential weaknesses or other deficiencies that pose risk during a time of financial crisis.
In August 2015, Aytes used her office computer to review listings for and apply for jobs with financial institutions that filed living wills with the FDIC. On August 27, 2015, one day after being contacted about a possible position at one of the banks, Aytes logged on to a secure FDIC database and printed living will information for that bank. On September 16, 2015, Aytes resigned her position at the FDIC. A review of FDIC Data Loss Prevention software revealed that on her last day of work, Aytes copied numerous electronic files from the FDIC network to external USB drives, including living wills for U.S. banks where Aytes had been seeking employment.
The government’s case is being handled by the Office’s General Crimes Section. Assistant United States Attorney James P. McDonald is in charge of the prosecution.
The Defendant:
ALLISON AYTES
Age: 41
Brooklyn, New YorkE.D.N.Y. Docket No. 18-CR-132 (SJ)