Eastern District of New York
Press releases recorded for this federal judicial district.
Panamanian Company Pleads Guilty to Bribing Soccer OfficialRead the Press Release
Earlier today, in federal court in Brooklyn, Mimo International Imports and Exports, Inc. (Mimo) pleaded guilty to wire fraud conspiracy in connection with its agreement to pay a $500,000 bribe to Eduardo Li, who was president of the Costa Rican soccer federation (FEDEFUT) at the time of the bribe. Mimo, which is a privately held corporation organized under the laws of Panama, paid over $300,000 of this agreed-upon bribe before Li was arrested in Zurich, Switzerland on May 27, 2015. Pursuant to a plea agreement with the government, Mimo was sentenced today to pay $500,000 in restitution to FEDEFUT and a $900,000 fine. Also pursuant this plea agreement, Mimo agreed to dissolve its corporate existence within 90 days. Today’s plea and sentencing proceedings took place before 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 R. Damon Rowe, Special Agent-in-Charge, Internal Revenue Service Criminal Investigation, Los Angeles Field Office (IRS CI), announced the guilty plea.
“The defendant company Mimo agreed to bribe the president of the Costa Rican soccer federation, depriving the federation of $500,000 as well as of its president’s honest services,” stated U.S. Attorney Donoghue. “As a result of the government’s investigation bringing this bribery scheme to light, Mimo admitted its guilt and will make full restitution to the federation, pay a $900,000 fine, and cease operations.”
“This plea is just one in an increasing pile of investigations and cases the FBI and our law enforcement partners from around the world have been pursuing for years,” stated FBI Assistant Director-in-Charge Sweeney. “It shows we're not slowing down in our efforts to stop greedy, criminal behavior casting a dark shadow on a game the world reveres. There will be more to come, and we won't stop until those who take money under the table and use it for their own illicit purposes get the message that they will get caught.”
“Today’s guilty plea is a clear demonstration of IRS Criminal Investigation’s continued commitment to pursue financial crimes, including those which further corruption in the world of international soccer,” stated IRS CI Special Agent-in-Charge Rowe. “IRS CI is committed to ending these practices and bringing bad actors, including corporate entities, to justice.”
According to court filings and facts presented during the plea proceeding, Mimo provided athletic apparel and sponsorship fees to FEDEFUT pursuant to a 2012 sponsorship agreement that was to run through 2018. In 2014, Mimo sought for FEDEFUT to terminate the 2012 sponsorship agreement, because if FEDEFUT terminated that agreement, Mimo’s owners would receive a multi-million dollar rescission fee. To induce Li to terminate the 2012 sponsorship agreement, Mimo agreed to pay Li a bribe of $500,000.
Li then terminated the 2012 agreement and on behalf of FEDEFUT entered into a sponsorship agreement with an American sports apparel company. Mimo paid Li over $300,000 of the $500,000 bribe, in United States currency, before Li’s arrest on May 27, 2015 in Zurich, Switzerland. Mimo representatives did not tell the American sports apparel company about the bribe, and told Li not to tell the American sports apparel company about it. Li pleaded guilty to racketeering conspiracy and other offenses on October 7, 2016, and admitted in his allocution, among other things, that he had agreed to this bribe.
The guilty plea announced today is part of an investigation into corruption in international soccer led by the U.S. Attorney’s Office for the Eastern District of New York, the FBI New York Field Office, and the IRS-CI Los Angeles Field Office. The prosecutors in Brooklyn are receiving considerable assistance from attorneys in various parts of the Justice Department’s Criminal Division in Washington, D.C., including the Office of International Affairs, the Organized Crime and Gang Section, the Money Laundering and Asset Recovery Section, and the Fraud Section, as well as from INTERPOL Washington.
The government’s case is being handled by the Office’s FIFA Task Force. Assistant United States Attorney Paul Tuchmann of the Eastern District of New York is in charge of the prosecution.
The Defendant:
MIMO INTERNATIONAL IMPORTS AND EXPORTS, INC.
Place of Incorporation: PanamaE.D.N.Y. Docket No. 18 CR 59 (PKC)
Four Individuals Charged with Bank Fraud and Identity TheftRead the Press Release
A six-count indictment was unsealed earlier today in federal court in Brooklyn charging Christian Hicks, Timel McRae, Stanley Valon and Roman Guevara with conspiracy to commit bank fraud, bank fraud, access device fraud and aggravated identity theft in connection with a scheme to obtain funds from financial institutions by using victims’ personally identifiable information. Defendant Roman Guevara will be arraigned later today at the United States Courthouse in San Jose, California. Defendant Stanley Valon will be arraigned later today at the United States Courthouse in Allentown, Pennsylvania. Defendants Christian Hicks and Timel McRae were previously arrested on a complaint, and their arraignment on the indictment will be scheduled later this month.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, and William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the charges.
“As alleged in the indictment, the defendants used other people’s personally identifiable information, together with false information, to obtain loans by fraud and steal money from banks,” stated United States Attorney Donoghue. “This Office, together with our law enforcement partners, is committed to protecting our financial system from those who use fraud to line their own pockets.”
“As alleged, the defendants falsely represented their financial standing at the expense of others in order to receive loans and credit offers they didn’t qualify for—plain and simple,” stated FBI Assistant Director-in-Charge Sweeney. “This is not a crime to be taken lightly, and as our charges today prove, this type of dishonorable behavior will not go unpunished.”
According to court filings, the defendants obtained other persons’ personally identifiable information, such as their dates of birth and social security numbers, by promising, among other things, to enter into joint vehicle ownership ventures with those persons or to improve their credit scores. After securing this information, the defendants used it, as well as false employment and salary information contained in forged documents they generated, to apply for automobile loans, obtain credit cards and secure lines of credit in the other persons’ names. The defendants used all of the funds provided by financial institutions as a result for their own purposes and not, as they had promised, to enter into joint vehicle ownership or improve anyone’s credit scores. In the course of their fraudulent scheme, the defendants applied to financial institutions for automobile loans, lines of credit and credit cards with a value of more than $1.5 million.
The government’s case is being handled by the Office’s Business and Securities Fraud Section. Assistant United States Attorney William P. Campos is in charge of the prosecution.
The Defendants:
CHRISTIAN HICKS
Age: 41
Queens, New YorkTIMEL MCRAE
Age: 41
Brooklyn, New YorkSTANLEY VALON
Age: 33
Hempstead, New York
ROMAN GUEVARA
Age: 48
Sunnyvale, CaliforniaE.D.N.Y. Docket No. 18-CR-0085 (MKB) (VMS)
al-Qaeda Operative Sentenced to Life Imprisonment for Terrorism Offenses Targeting Americans OverseasRead the Press Release
Earlier today, in Brooklyn federal court, al-Qaeda operative Ibrahim Suleiman Adnan Adam Harun was sentenced to life imprisonment by United States District Judge Brian M. Cogan following his March 16, 2017 trial conviction of multiple terrorism offenses, including conspiracy to murder American military personnel in Afghanistan, conspiracy to bomb the U.S. Embassy in Nigeria, and providing material support to al-Qaeda.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, Edward C. O’Callaghan, Acting Assistant Attorney General for National Security, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and James P. O’Neill, Commissioner, New York City Police Department (NYPD), announced the sentence.
“This case demonstrates our commitment to bringing to justice those who target American citizens serving their country abroad. We will be relentless in our efforts to hold terrorists like the defendant accountable for their crimes,” stated United States Attorney Donoghue.
“With the sentence handed down today, our justice system has once again held accountable an al-Qaeda operative for his terrorist activities, ensuring that he will spend the rest of his life in prison,” stated Acting Assistant Attorney General O’Callaghan. “The evidence presented at trial established that the defendant and other jihadists attacked a U.S. military patrol in Afghanistan, resulting in the death of two American soldiers and the serious injury of others. Working with our partners in the law enforcement and intelligence communities, the National Security Division will continue to vigorously pursue and disrupt terrorists who target Americans and American facilities around the world. Thank you to the many agents, analysts, and prosecutors whose hard work and dedication made this result possible.”
Mr. Donoghue and Mr. O’Callaghan expressed their grateful appreciation to the FBI’s Joint Terrorism Task Force, the Department of Justice’s Office of International Affairs, the Department of Defense Army investigators, the Office of Military Commissions, the Italian Ministry of Justice, the Prosecutor’s Office in Palermo, Italy, the Italian National Police, Guardia di Finanza and Carabinieri authorities for their support and assistance.
“Justice has been served on behalf of the victims of Spin Ghul’s grisly attack on U.S. military patrol members in 2003,” stated FBI Assistant Director-in-Charge Sweeney. “This al-Qaeda operative will no longer pose a threat to society. The FBI’s Joint Terrorism Task Force in New York is committed to working with our partners here and abroad to bring terrorists to justice.”
“Harun was a dedicated and early soldier in bin Laden’s al-Qaeda, joining just weeks before the September 11th attacks,” stated NYPD Police Commissioner O’Neill. “He launched attacks against US service members in Afghanistan in 2003, killing two and injuring many others. After, he attempted to bomb the U.S. Embassy in Nigeria, among other western targets. Harun will rightfully spend the rest of his life behind bars. This department—with our partners in law enforcement— remains deeply committed to combating terrorism from New York to Nigeria—and everywhere in between.”
As proven at trial, Harun (also known as “Spin Ghul”) traveled from Saudi Arabia to Afghanistan weeks before September 11, 2001, where he joined al-Qaeda, trained at al-Qaeda training camps, and eventually swore allegiance to Osama bin Laden. Harun then traveled with other al-Qaeda jihadists to the Federally Administered Tribal Areas of Pakistan, where he operated under Abdul Hadi al-Iraqi, one of bin Laden’s deputies and a senior al-Qaeda military commander.
On April 25, 2003, Harun and fellow al-Qaeda jihadists ambushed a U.S. military patrol near the Afghan-Pakistan border. Harun fired machinegun rounds and threw grenades at American soldiers and allied Afghan Militia Forces while shouting “Allahu Akbar” or “God is Great.” Two U.S. servicemen were killed in the attack—Private First Class Jerod Dennis, 19, of Oklahoma, and Airman First Class Raymond Losano, 24, of Texas—and several other soldiers were seriously wounded.
After the ambush, Harun met with senior al-Qaeda officials—including Abu Faraj al-Libi, then al-Qaeda’s external operations chief—to express his desire to commit acts of terror against U.S. interests outside Afghanistan. He specifically sought to carry out attacks similar to the 1998 al-Qaeda bombings of the U.S. Embassies in Kenya and Tanzania, which resulted in more than 200 deaths and 4,000 injuries.
In the summer of 2003, senior al-Qaeda leaders dispatched Harun from Pakistan to Nigeria to bomb the U.S. Embassy in Abuja. Harun’s al-Qaeda handler directed him to obtain one ton of explosives for the bombing operation and to target Americans—whom he described as “the head of the snake”—at embassies, hotels and other “places where they gather for fun.” Upon arriving in Nigeria, Harun recruited accomplices, scouted the Embassy and other potential Western targets, and sent an accomplice to find explosives. He also met with local terrorist leaders to expand al-Qaeda’s terrorist network in West Africa.
In 2004, Harun directed a coconspirator to courier information and materials from Nigeria to al-Qaeda leaders in Pakistan. After learning that the coconspirator had been arrested in Pakistan, Harun fled Nigeria to Libya, from where he planned to enter Europe to carry out terrorist attacks against Western interests. In early 2005, however, Harun was arrested by Libyan authorities and held in custody until his release in June 2011. Harun was arrested in June 2011 by Italian authorities. He was indicted on terrorism charges in the United States in February 2012 and extradited from Italy to the United States later that year.
The government’s case was prosecuted by the Office’s National Security & Cybercrime Section. Assistant U.S. Attorneys Shreve Ariail, Melody Wells, and Matthew J. Jacobs of the United States Attorney’s Office for the Eastern District of New York, along with Joseph N. Kaster, Trial Attorney, Counterterrorism Section of the Justice Department’s National Security Division, were in charge of the prosecution.
The Defendant:
IBRAHIM SULEIMAN ADNAN ADAM HARUN
Age: 47E.D.N.Y. Docket No. 12-CR-134
New York Man Pleads Guilty to Attempting to Join ISIS in YemenRead the Press Release
Mohamed Rafik Naji, 38, of Brooklyn, New York, pleaded guilty today to one count of attempting to provide material support or resources to the Islamic State of Iraq and al-Sham (ISIS), a designated foreign terrorist organization.
Acting Assistant Attorney General for National Security Edward C. O’Callaghan, U.S. Attorney Richard P. Donoghue, Assistant Director in Charge William F. Sweeney of the FBI’s New York Field Office and Commissioner James P. O’Neill of the NYPD announced the guilty plea. The plea was accepted by U.S. District Judge Frederic Block.
As detailed in publicly filed court documents, Naji, a lawful permanent resident originally from Yemen, viewed and distributed ISIS propaganda before traveling from New York to Yemen in March 2015 in an effort to join ISIS. While in Yemen, Naji repeatedly tried to travel to areas controlled by ISIS, explaining in emails with an associate in the United States that he was on his fifth attempt to reach ISIS. Naji described traveling through militarized zones and claimed that he and his group had almost been “killed . . . by army.” In addition, he explained that “we have trouble getting in the party” because there were “to[o] many security [g]uards all ova the place” that would “kill us if they find us.” Naji also sent his associate videos that he made in Yemen. In one of the videos that was attached to an email with the subject line “First day on the job,” Naji’s voice can be heard over the sound of automatic weapons saying “I think we’re taking fire.” Naji also sent his associate ISIS propaganda videos. In addition, in an online conversation, Naji proclaimed his allegiance to ISIS stating, “I belong to Islamic state only.”
Following his return to the United States in September 2015, Naji continued to express his support for ISIS and violent jihad. For example, he explained ways to travel to ISIS-controlled territory in Syria by crossing the Turkish border, and how to employ strategies to avoid arrest in Turkey. In July 2016, following the ISIS-inspired terrorist truck attack in Nice, France, Naji discussed how easy it would be to carry out a similar attack in Times Square, explaining that ISIS “want an operation in Times Square” and stating that an ISIS “reconnaissance group . . . put up scenes of Times Square.” Naji further explained “if there is a truck, I mean a garbage truck and one drives it there to Times Square and crushes them…Times Square day.” He was arrested by members of the New York JTTF in the autumn of 2016. At sentencing, Naji faces a statutory maximum term of 20 years’ imprisonment.
Mr. O’Callaghan and Mr. Donoghue extended their grateful appreciation to the FBI’s Joint Terrorism Task Force (JTTF), which comprises a number of federal, state and local agencies from the region.
This case was prosecuted by Assistant U.S. Attorneys Ian C. Richardson and Melody Wells of the Eastern District of New York, with assistance from Trial Attorney Brian Morgan of the National Security Division’s Counterterrorism Section.
Brooklyn Man Pleads Guilty to Attempting to Join ISIS in YemenRead the Press Release
Earlier today in federal court in Brooklyn, Mohamed Rafik Naji pleaded guilty before United States District Judge Frederic Block to one count of attempting to provide material support or resources to the Islamic State of Iraq and al-Sham (ISIS), a foreign terrorist organization.
United States Attorney Richard P. Donoghue, Acting Assistant Attorney General for National Security Edward O’Callaghan, Assistant Director-in-Charge William F. Sweeney, Jr., of the New York Field Office of the Federal Bureau of Investigation (FBI), and James P. O’Neill, Commissioner, New York City Police Department (NYPD), announced the guilty plea.
Mr. Donoghue extended his grateful appreciation to the FBI’s Joint Terrorism Task Force (JTTF), which comprises a number of federal, state and local agencies from the region.
As detailed in publicly filed court documents, Naji viewed and distributed ISIS propaganda before traveling from New York to Yemen in March 2015 in an effort to join ISIS. While in Yemen, Naji repeatedly tried to travel to areas controlled by ISIS, explaining in emails with an associate in the United States that he was on his fifth attempt to reach ISIS. Naji described traveling through militarized zones and claimed that he and his group had almost been “killed . . . by army.” In addition, he explained that “we have trouble getting in the party” because there were “to[o] many security [g]uards all ova the place” that would “kill us if they find us.” Naji also sent his associate videos that he made in Yemen. In one of the videos that was attached to an email with the subject line “First day on the job,” Naji’s voice can be heard over the sound of automatic weapons saying “I think we’re taking fire.” Naji also sent his associate ISIS propaganda videos. In addition, in an online conversation, Naji proclaimed his allegiance to ISIS stating, “I belong to Islamic state only.”
Following his return to the United States in September 2015, Naji continued to express his support for ISIS and violent jihad. For example, he explained ways to travel to ISIS-controlled territory in Syria by crossing the Turkish border, and how to employ strategies to avoid arrest in Turkey. In July 2016, following the ISIS-inspired terrorist truck attack in Nice, France, Naji discussed how easy it would be to carry out a similar attack in Times Square, explaining that ISIS “want an operation in Times Square” and stating that an ISIS “reconnaissance group . . . put up scenes of Times Square.” Naji further explained “if there is a truck, I mean a garbage truck and one drives it there to Times Square and crushes them…Times Square day.” He was arrested by members of the New York JTTF in the autumn of 2016. At sentencing, Naji faces a statutory maximum term of 20 years’ imprisonment.
The government’s case is being handled by the Office’s National Security & Cybercrime Section. Assistant United States Attorneys Ian C. Richardson and Melody Wells were in charge of the prosecution, with assistance from Trial Attorney Brian Morgan of the National Security Division’s Counterterrorism Section.
The Defendant:
MOHAMED RAFIK NAJI
Age: 38
Brooklyn, New YorkE.D.N.Y. Docket No. 16-CR-653 (FB)
Al-Qaeda Operative Sentenced to Life in Prison for Terrorism Offenses Targeting Americans OverseasRead the Press Release
Earlier today, Al-Qaeda operative Ibrahim Suleiman Adnan Adam Harun, aka Spin Ghul, 47, was sentenced to life in prison following his March 16, 2017 trial conviction of multiple terrorism offenses, including conspiracy to murder American military personnel in Afghanistan, conspiracy to bomb the U.S. Embassy in Nigeria, and providing material support to al-Qaeda.
Acting Assistant Attorney General for National Security Edward O’Callaghan, U.S. Attorney Richard P. Donoghue for the Eastern District of New York, Assistant Director in Charge William F. Sweeney, Jr. of the FBI’s New York Field Office and Commissioner James P. O’Neill of the NYPD made the announcement. The sentence was issued by U.S. District Judge Brian M. Cogan.
“With the sentence handed down today, our justice system has once again held accountable an al-Qaeda operative for his terrorist activities, ensuring that he will spend the rest of his life in prison,” said Acting Assistant Attorney General O’Callaghan. “The evidence presented at trial established that the defendant and other jihadists attacked a U.S. military patrol in Afghanistan, resulting in the death of two American soldiers and the serious injury of others. Working with our partners in the law enforcement and intelligence communities, the National Security Division will continue to vigorously pursue and disrupt terrorists who target Americans and American facilities around the world. Thank you to the many agents, analysts and prosecutors whose hard work and dedication made this result possible.”
“This case demonstrates our commitment to bringing to justice those who target American citizens serving their country abroad. We will be relentless in our efforts to hold terrorists like the defendant accountable for their crimes,” said U.S. Attorney Donoghue.
“Justice has been served on behalf of the victims of Spin Ghul's grisly attack on U.S. military patrol members in 2003,” said Assistant Director in Charge Sweeney. “This al-Qaeda operative will no longer pose a threat to society. The FBI's Joint Terrorism Task Force in New York is committed to working with our partners here and abroad to bring terrorists to justice.”
“Harun was a dedicated and early soldier in Bin Laden’s al Qaeda, joining just weeks before the September 11th attacks,” said Commissioner O’Neill. “He launched attacks against U.S. service members in Afghanistan in 2003, killing two and injuring many others . After, he attempted to bomb the U.S. Embassy in Nigeria, among other western targets. Harun will rightfully spend the rest of his life behind bars. This department — with our partners in law enforcement — remains deeply committed to combating terrorism from New York to Nigeria — and everywhere in between.”
As proven at trial, Harun traveled from Saudi Arabia to Afghanistan weeks before Sept. 11, 2001, where he joined al-Qaeda, trained at al-Qaeda training camps, and eventually swore allegiance to Usama bin Laden. Harun, also known by the nom de guerre “Spin Ghul,” a Pashto name meaning “White Rose,” then traveled with other al-Qaeda jihadists to the Federally Administered Tribal Areas of Pakistan, where he operated under Abdul Hadi al-Iraqi, one of bin Laden’s deputies and a senior al-Qaeda military commander.
On April 25, 2003, Harun and fellow al-Qaeda jihadists ambushed a U.S. military patrol near the Afghan-Pakistan border. Harun fired machinegun rounds and threw grenades at American soldiers and allied Afghan Militia Forces while shouting “Allahu Akhbar” or “God is Great.” Two U.S. servicemen were killed in the attack — Private First Class Jerod Dennis, 19, of Oklahoma, and Airman First Class Raymond Losano, 24, of Texas — and several other soldiers were seriously wounded.
After the ambush, Harun met with senior al-Qaeda officials — including Abu Faraj al-Libi, then al-Qaeda’s external operations chief — to express his desire to commit acts of terror against U.S. interests outside Afghanistan. He specifically sought to carry out attacks similar to the 1998 al-Qaeda bombings of the U.S. Embassies in Kenya and Tanzania, which resulted in more than 200 deaths and 4,000 injuries.
In the summer of 2003, senior al-Qaeda leaders dispatched Harun from Pakistan to Nigeria to bomb the U.S. Embassy in Abuja. Harun’s al-Qaeda handler directed him to obtain one ton of explosives for the bombing operation and to target Americans — whom he described as “the head of the snake” — at embassies, hotels and other “places where they gather for fun.” Upon arriving in Nigeria, Harun recruited accomplices, scouted the Embassy and other potential Western targets, and sent an accomplice to find explosives. He also met with local terrorist leaders to expand al-Qaeda’s terrorist network in West Africa.
In 2004, Harun directed a coconspirator to courier information and materials from Nigeria to al-Qaeda leaders in Pakistan. After learning that the coconspirator had been arrested in Pakistan, Harun fled Nigeria to Libya, from where he planned to enter Europe to carry out terrorist attacks against Western interests. In early 2005, however, Harun was arrested by Libyan authorities and held in custody until his release in June 2011. Harun was arrested in June 2011 by Italian authorities. He was indicted on terrorism changes in the United States in February 2012 and extradited from Italy to the United States later that year.
Mr. O’Callaghan and Mr. Donoghue expressed their grateful appreciation to the FBI’s Joint Terrorism Task Force, the Department of Justice’s Office of International Affairs, the Department of Defense Army investigators, the Office of Military Commissions, the Italian Ministry of Justice, the Prosecutor’s Office in Palermo, Italy, the Italian National Police, Guardia di Finanza and Carabinieri authorities for their support and assistance.
Assistant U.S. Attorneys Shreve Ariail and Matthew J. Jacobs of the Eastern District of New York, and Trial Attorney Joseph N. Kaster of the National Security Division’s Counterterrorism Section are in charge of the prosecution.
Top Executives at Long Island Mortgage Lender Plead Guilty to $8.9 Million FraudRead the Press Release
Earlier today in federal court in Central Islip, New York, Edward J. Sypher, Jr., and Matthew T. Voss, senior executives at Long Island mortgage lender Vanguard Funding, LLC (Vanguard), pleaded guilty to conspiring to commit wire and bank fraud in connection with their diversion of more than $8.9 million of warehouse loans that Vanguard had obtained to fund mortgages. The guilty pleas were entered before United States District Judge Sandra J. Feuerstein. When sentenced, each defendant faces up to 20 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 Maria T. Vullo, Superintendent, New York State Department of Financial Services, announced the guilty pleas.
According to court filings and the facts presented at the plea proceedings, between August 2016 and March 2017, Voss, Vanguard’s Chief Operating Officer, and Sypher, the Chief Financial Officer, engaged in a scheme in which they obtained warehouse loans, or short-term loans, for Vanguard by falsely representing that Vanguard would use the proceeds of those loans to fund mortgages or mortgage refinancing for Vanguard’s clients. Once Vanguard received the loans, however, the defendants 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.
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 Defendants:
EDWARD J. SYPHER, JR.
Age: 41
Residence: Scarsdale, New York
E.D.N.Y. Docket No. 18-CR-028 (SJF)MATTHEW T. VOSS
Age: 42
Residence: Northport, New York
E.D.N.Y. Docket No. 18-CR-027 (SJF)Three MS-13 Gang Members Sentenced to Lengthy Sentences in Brooklyn Federal Court for Murder of 19-Year Old ManRead the Press Release
Earlier today, in federal court in Brooklyn, defendants Milton Contreras, Oscar Welman Espinoza-Merino and Jose Osmin Rubio were each sentenced by United States District Judge Margo K. Brodie following their convictions for the murder of a 19-year-old victim on Long Island in 2014. Contreras was sentenced to 27 years’ imprisonment, while Espinoza-Merino and Osmin Rubio were each sentenced to more than 24 years’ imprisonment. After serving their sentences, all three defendants will face deportation from the United States.
Richard P. Donoghue, United States Attorney for the Eastern District of New York; Angel M. Melendez, Special Agent-in-Charge, United States Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI) New York; Ashan M. Benedict, Special Agent-in-Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives, New York Field Division (ATF); and James P. O’Neill, Commissioner, New York City Police Department, announced the sentencings. Mr. Donoghue also expressed his appreciation to the Suffolk County Police Department for their assistance during the investigation.
“Today’s sentence marks the final chapter in the pursuit of justice against these three MS-13 gang members who brutally murdered a teenager execution-style when they suspected him of cooperating with law enforcement,” stated United States Attorney Donoghue. “This prosecution is part of the ongoing mission of this Office to protect the residents of this district from the violence and lawlessness of MS-13, and we will not rest until the MS-13 criminal organization is entirely dismantled.”
“It is not a secret that MS-13 gang members are violent for the sake of being violent, and in this particular case exhibited their murderous ways by executing a teenager in Long Island,” stated HSI Special Agent-in-Charge Melendez. “As they use violence to seek power through instilling fear into the neighborhoods in which they live, we will be relentless working with our partners to dismantle this vicious gang and bring peace back to the communities.”
“The individuals that committed this heinous act of violence are rightfully where they belong. While in prison, they can reflect on the terror and pain they inflicted on their community. Gangs like MS-13 that seek to terrorize the community putting citizens at fear for their lives should know that law enforcement is committed to rooting this evil from our society and making the streets safe for everyone,” stated ATF Special Agent-in-Charge Benedict. “I would like to express my gratitude to the United States Attorney for prosecuting the case. I also would like to thank the Special Agents and Task Force Officers of the ATF’s Joint Firearms Task Force and our counterparts at HSI and the NYPD for diligently pursuing this case until justice was served.”
As detailed in the superseding indictment, the three defendants—along with a fourth defendant convicted of the murder, Byron Lopez, who has not yet been sentenced—are members of the Jamaica, Queens and/or Brentwood, Long Island chapters of the violent street gang La Mara Salvatrucha, also known as “MS-13.” On February 25, 2014, Lopez, Espinoza-Merino, Contreras and Rubio directed the victim, fellow gang member Sidney Valverde, to travel to Long Island under the false pretense that they needed him to assist in gang business there. In fact, the co-conspirators planned to kill Valverde because they believed that he was providing information about the gang’s activities to law enforcement. After Valverde arrived in Long Island, the co-conspirators shot him in the back of the head and left his body on Miller Place Beach in Suffolk County where it was discovered by a beachcomber approximately two weeks later.
This case is the latest in a series of federal prosecutions by the United States Attorney’s Office for the Eastern District of New York 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. With numerous branches, or “cliques,” the MS-13 is the largest and most violent street gang on Long Island. Since 2003, hundreds of MS-13 members, including dozens of clique leaders, have been convicted on federal felony charges in this district. A majority of those MS-13 members have been convicted on federal racketeering charges for participating in murders, attempted murders, and assaults. Since 2010 alone, this Office has obtained indictments charging MS-13 members with carrying out more than 40 murders in the Eastern District of New York and has convicted dozens of MS-13 leaders and members in connection with those murders.
The government’s case is being handled by the Office’s Organized Crime and Gangs Section. Assistant United States Attorney Alixandra Smith is in charge of the prosecution.
Defendants Sentenced Today:
OSCAR WELMAN ESPINOZA-MERINO (aka “Speedy” and “Petey”)
Age: 35
Brentwood, New YorkMILTON CONTRERAS (aka “Diabolico”)
Age: 22
Brentwood, New YorkJOSE OSMIN RUBIO (aka “Slow”)
Age: 30
Brentwood, New YorkDefendant Awaiting Sentencing:
BYRON LOPEZ
Age: 26
Queens, New YorkE.D.N.Y. Docket No. 14-463 (MKB) (RER)
Three Individuals Indicted for Visa Fraud Scheme for ProfitRead the Press Release
A 15-count indictment was unsealed yesterday in federal court in Brooklyn charging Stella Boyadjian, Hrachya Atoyan and Diana Grigoryan, also known as “Dina Akopovna,” for their roles in a multi-year visa fraud scheme that brought Armenian citizens into the United States for profit. The defendants are charged with multiple counts of visa fraud and with conspiring to defraud the United States, commit visa fraud and illegally bring aliens into the United States. Boyadjian and Grigoryan are also charged with related money laundering charges, and Boyadjian is charged with aggravated identity theft. Boyadjian was arraigned yesterday before United States Magistrate Judge James Orenstein. Atoyan’s initial appearance for removal proceedings to the Eastern District of New York is scheduled for later today, in the Central District of California.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, John P. Cronan, Acting Assistant Attorney General of the United States Justice Department’s Criminal Division, and Christian J. Schurman, Principal Deputy Assistant Secretary for Diplomatic Security and Director for Diplomatic Security Service, United States Department of State, announced the charges.
“As alleged in the indictment, the defendants choreographed their fraud scheme by dressing visa applicants in traditional dance costumes and creating fake concert flyers in order to deceive a government program that allows foreign nationals to temporarily enter the United States as artistic performers,” stated United States Attorney Donoghue. “As a result of outstanding investigative work and commitment to protecting the integrity of the immigration process by this Office and our law enforcement partners, the defendants will now face the music for their alleged crimes.”
“Fraudsters who undermine our immigration system threaten our public safety and our national security,” said Acting Assistant Attorney General Cronan. “The Justice Department will not tolerate abuses of our nation’s immigration laws like those alleged in the indictment unsealed today. We will root out immigration fraud and bring those responsible to justice.”
“The Diplomatic Security Service is firmly committed to protecting the integrity of all U.S. visas and travel documents – especially those, like the P-3 visa, which allow for entertainers to visit the U.S. to perform in culturally unique events and deepen our understanding of different cultures,” stated Principal Deputy Assistant Secretary Schurman. “This case is the result of a strong partnership among federal law enforcement agencies and DSS’ global network of special agents working together to stop visa and passport crimes and stop criminals from earning illegal income by exploiting U.S. visas, passports, and foreign workers.”
As alleged in the indictment, the defendants were engaged in a widespread visa fraud scheme to illegally bring foreign nationals (“Aliens”) 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 P-3 nonimmigrant visa classification allows foreign nationals to temporarily travel to the United States to perform, teach or coach as artists or entertainers, under a program that is culturally unique. A United States employer or sponsoring organization is required to submit a USCIS Form I-129 Petition for a Non-Immigrant Worker, along with supporting documentation, attesting that the performances in the United States are culturally unique.
As alleged in the indictment, Boyadjian ran a non-profit organization called Big Apple Music Awards Foundation Inc. (“BAMA”), based in Rego Park, New York, which she and her co-conspirators used to further their visa fraud scheme. As part of the scheme, the defendants and their co-conspirators solicited Aliens and charged them fees ranging from $3,000 to $15,000 per Alien applicant to fraudulently obtain P-3 visas by submitting false Forms I-129 and supporting documents to the USCIS. Upon approval of the Form I-129 petitions, the defendants and their co-conspirators acquired fraudulent dance certificates and organized staged photo sessions where foreign nationals wore Armenian dance costumes to make it appear as though they were traditional Armenian musicians, singers and performers. After being trained how to falsely answer questions during visa interviews, the P-3 visa applicants presented these fake certificates and photos during their P-3 visa interviews. Once in the United States, some beneficiaries of the P-3 visas paid the defendants an additional fee to be included in applications for extensions of their fraudulently obtained visas. The defendants furthered their visa fraud scheme by creating flyers and other documents purporting to hold BAMA-sponsored concerts and events in the United States.
The charges announced today are merely allegations and the defendants are presumed innocent unless and until proven guilty.
This case is a joint investigation by the Diplomatic Security Service’s Criminal Investigations Division 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 Defendants:
STELLA BOYADJIAN
Age: 47
Rego Park, New YorkHRACHYA ATOYAN
Age: 30
Glendale, CaliforniaDIANA GRIGORYAN (also known as “Dina Akopovna”)
Age: 41
Yerevan, ArmeniaE.D.N.Y. Docket No. 18-CR-57 (MKB)
Three Individuals Indicted for Visa Fraud Scheme for ProfitRead the Press Release
Three individuals were indicted in the Eastern District of New York for their alleged roles in a multi-year visa fraud scheme that brought Armenian citizens into the United States for profit.
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division; U.S. Attorney Richard P. Donoghue of the Eastern District of New York and Principal Deputy Assistant Secretary Christian J. Schurman for U.S. Department of State Diplomatic Security and Director for Diplomatic Security Service (DSS), made the announcement.
Stella Boyadjian, 47, of Rego Park, New York; Hrachya Atoyan, 30, of Glendale, California; and Diana Grigoryan aka “Dina Akopovna,” 41, of the Republic of Armenia, were charged in a 15-count indictment unsealed yesterday in federal court in Brooklyn with multiple counts of visa fraud and with conspiracy to defraud the United States, commit visa fraud, and illegally bring aliens into the United States. Boyadjian and Grigoryan are also charged with related money laundering charges, and Boyadjian is charged with aggravated identity theft. Boyadjian was arraigned yesterday before U.S. Magistrate Judge James Orenstein. Atoyan’s initial appearance for removal proceedings to the Eastern District of New York is scheduled for later today, in the Central District of California.
“Fraudsters who undermine our immigration system threaten our public safety and our national security,” said Acting Assistant Attorney General John P. Cronan. “The Justice Department will not tolerate abuses of our nation’s immigration laws like those alleged in the indictment unsealed today. We will root out immigration fraud and bring those responsible to justice.”
“As alleged in the indictment, the defendants choreographed their fraud scheme by dressing visa applicants in traditional dance costumes and creating fake concert flyers in order to deceive a government program that allows foreign nationals to temporarily enter the United States as artistic performers,” said U.S. Attorney Donoghue. “As a result of outstanding investigative work and commitment to protecting the integrity of the immigration process by this Office and our law enforcement partners, the defendants will now face the music for their alleged crimes.”
“The Diplomatic Security Service is firmly committed to protecting the integrity of all U.S. visas and travel documents -- especially those, like the P-3 visa, which allow for entertainers to visit the United States to perform in culturally unique events and deepen our understanding of different cultures,” said Principal Deputy Assistant Secretary Schurman. “This case is the result of a strong partnership among federal law enforcement agencies and DSS’ global network of special agents working together to stop visa and passport crimes and stop criminals from earning illegal income by exploiting U.S. visas, passports, and foreign workers.”
According to the indictment, unsealed today upon the arrest of Boyadjian and Atoyan, Boyadjian led a transnational network of co-conspirators who engaged in a widespread visa fraud scheme to bring Armenian citizens into the United States by fraudulently claiming to the U.S. Citizenship and Immigration Services (USCIS) that the Armenians were members of folk performance groups, and thus qualified for P-3 “Culturally Unique Artist” visas. The P-3 nonimmigrant visa classification allows foreign nationals to temporarily travel to the United States to perform, teach or coach as artists or entertainers, under a program that is culturally unique. A U.S. employer or sponsoring organization is required to submit a USCIS Form I-129 Petition for a Non-Immigrant Worker, along with supporting documentation, attesting that the performances in the United States are culturally unique.
As alleged in the indictment, Boyadjian ran a non-profit organization called Big Apple Music Awards Foundation, based in Rego Park, New York. Boyadjian used the Big Apple Music Awards Foundation as well as formal and informal Armenian music industry contacts in the United States and Armenia to perpetuate the scheme. Boyadjian and others solicited Armenian citizens who wanted to come to the United States and charged them between $3,000 and $15,000 to be included on the Form I-129 Petitions. Boyadjian and other associates in Armenia acquired fraudulent performer certificates and organized staged photo sessions where the aliens wore traditional Armenian folk outfits to make it appear as though they were traditional Armenian performers. After being trained how to defeat U.S. visa interviews, the individual aliens presented these certificates and photos to U.S. consular officers during their visa interviews. Once the Armenians entered the United States, some would pay Boyadjian and her associates additional money to be included in another fraudulent petition asking for P-3 visa extensions. Some aliens have overstayed their visas and remain unlawfully in the United States.
This case was a joint investigation by the DSS’s Criminal Fraud Investigations and Overseas Criminal Investigations Divisions with assistance from the USCIS Fraud Detection and National Security, Center Fraud Detection Operations in Vermont. Trial Attorney Sasha N. Rutizer of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorney David Gopstein of the Eastern District of New York are prosecuting the case.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
New York City Correction Officers Charged with Smuggling Narcotics into City Prison FacilitiesRead the Press Release
A six-count indictment was unsealed today in federal court in Brooklyn charging seven defendants with conspiring to bribe correction officers employed by the New York City Department of Corrections (“DOC”) as part of a narcotics smuggling conspiracy. The defendants’ arraignment is scheduled for this afternoon before United States Magistrate Judge James Orenstein.
As alleged in the indictment, the defendants conspired to smuggle marijuana and other contraband into DOC prison facilities with the assistance of New York City Department of Correction Officers Christian Mizell and Carl Noel. Defendants Warren Green and Patrick Johnson, both incarcerated on unrelated felony offenses, arranged for marijuana and other contraband to be packaged and delivered covertly to the correction officers by defendants Robert Martino, Malik Holloway and Asha Patterson. The Correction Officers received thousands of dollars in bribes to smuggle the contraband past DOC security for eventual distribution inside the prison.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, James J. Hunt, Special Agent-in-Charge, Drug Enforcement Administration, New York Division (DEA), Mark G. Peters, Commissioner, New York City Department of Investigation (DOI), James P. O’Neill, Commissioner, New York City Police Department (NYPD), and George P. Beach, Superintendent, New York State Police, announced the charges.
“The honesty and integrity of correction officers is critical to the orderly running of a prison,” stated United States Attorney Donoghue. “When the defendant correction officers betrayed the trust placed in them by the City of New York, they not only committed serious crimes but also potentially jeopardized the safety of staff and inmates. This Office and our law enforcement partners are committed to identifying and prosecuting corrupt correction officers who accept bribes to smuggle contraband into prison facilities.”
“Drug traffickers are notorious for their smuggling methods, but this case demonstrated the defendants’ ability to bypass security altogether,” stated DEA Special Agent-in-Charge Hunt. “With two correction officers as members of the organization, the defendants allegedly pushed contraband into prison for resale to inmates. Today’s arrests are a result of law enforcement partnerships and hard work.”
“This investigation demonstrates again a pattern of misconduct in our City’s jails: outside civilians working with Correction Officers and DOC employees to smuggle narcotics and other contraband to inmates on the inside,” stated DOI Commissioner Peters. “DOI and its partners, including the U.S. Attorney for the Eastern District, have been cracking down on these illegal operations to stem the flow of contraband, while also working towards critical reforms in DOC’s front-gate screening protocols to shore up security at these facilities.”
“Due to the hard work and cooperation between law enforcement partners at all levels, this smuggling conspiracy was uncovered and shut down,” stated NYSP Superintendent Beach. “This sends a strong message that we will not tolerate such crimes, especially when they are perpetuated by individuals in a place of authority who have been entrusted with upholding the law. Such criminals will be prosecuted to the fullest.”
The charges in the indictment are merely allegations, and the defendants are presumed innocent unless and until proven guilty. If convicted, the defendants face a maximum sentence of five years imprisonment.
The government’s case is being prosecuted by Assistant United States Attorney Erik Paulsen of the Office’s Public Integrity Section and Nomi Berenson of the Office’s International Narcotics and Money Laundering Section.
The Defendants:
Christian MIzell
Age: 48
Queens, New YorkCARL NOEL
Age: 32
New York, New YorkWARREN GREEN
Age: 40
Pine City, New YorkPATRICK JOHNSON
Age: 27
Bronx, New YorkROBERT MARTINO
Age: 37
Queens, New YorkMALIK HOLLOWAY
Age: 22
Bronx, New YorkASHA PATTERSON
Age: 43
Queens, New YorkE.D.N.Y. Docket No. 18-CR-60 (PKC)
New York Doctor Sentenced to 13 Years in Prison for Multi-Million Dollar Health Care FraudRead the Press Release
Earlier today, in federal court in Brooklyn, Dr. Syed Imran Ahmed, a licensed medical doctor who practiced at hospitals in Brooklyn and on Long Island, was sentenced by United States Chief Judge Dora L. Irizarry of the Eastern District of New York to 13 years’ imprisonment for submitting millions of dollars in false and fraudulent claims to Medicare. The Court also ordered Dr. Ahmed to pay $7,266,008.95 in restitution, to forfeit $7,266,008.95, and to pay a $20,000 fine. Dr. Ahmed was convicted by a federal jury after an 11-day trial of one count of health care fraud, three counts of making false statements related to health care matters, and two counts of money laundering.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, John P. Cronan, Acting Assistant Attorney General of the Justice Department’s Criminal Division, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Scott J. Lampert, Special Agent-in-Charge, U.S. Department of Health and Human Services, Office of Inspector General (HHS OIG) Office of Investigations, New York Region, announced the sentence.
“Dr. Syed Ahmed treated Medicare like a personal piggy bank, stealing over $7.2 million by making fraudulent claims for medical procedures he never performed,” stated United States Attorney Donoghue. “Dr. Ahmed will now pay the price for violating the trust that Medicare places in doctors. His 13-year prison sentence and the heavy payments imposed should send a powerful message of deterrence to other medical professionals who would seek to defraud vital taxpayer-funded programs like Medicare for personal enrichment. This Office, together with our law enforcement partners, will remain vigilant in rooting out health care fraud.”
“Medicare is a crucial program for many of the most vulnerable people in our society – American seniors and those with disabilities,” stated Acting Assistant Attorney General Cronan. “In this case, Syed Ahmed put his own greed ahead of the trust we put in our medical professionals, draining over $7 million in precious funding from our Medicare program. His conviction and the sentence imposed in this case demonstrate the Department of Justice’s unwavering commitment to protecting public funds and the integrity of our health care system.”
“Health care fraud is often billed as a victimless crime, but that couldn’t be further from the truth,” stated FBI Assistant Director-in-Charge Sweeney. “Someone is always left to foot the bill. Insurers, the insured, and others are the ones who pay the price. Those who employ these schemes will most certainly be brought to justice, as we’ve proven here today.”
“The fraud scheme that Dr. Ahmed engaged in was motivated by pure greed,” stated HHS OIG Special Agent-in-Charge Lampert. “HHS OIG and our law enforcement partners will continue to aggressively pursue all those who seek to unlawfully enrich themselves by victimizing participants of the Medicare program.”
According to evidence presented at trial, Dr. Ahmed, a surgeon who practiced at Kingsbrook Jewish Medical Center and Wyckoff Heights Medical Center in Brooklyn, Franklin Hospital in Valley Stream, and Mercy Medical Center in Rockville Centre, New York, billed the Medicare program for incision-and-drainage and wound debridement procedures that he did not perform. Dr. Ahmed wrote out lists of phony surgeries and sent the lists to his billing company in Michigan, with instructions that the procedures be billed to Medicare. Dr. Ahmed also directed that the surgeries be billed as though they had taken place in an operating room in order to increase the payout for the fraudulent scheme. The evidence introduced at trial showed that Medicare paid over $7 million to Dr. Ahmed for his fraudulent claims.The FBI and HHS OIG investigated the case, which was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Eastern District of New York. Assistant U.S. Attorney F. Turner Buford, formerly a Fraud Section trial attorney, Senior Litigation Counsel Patricia Notopoulos of the United States Attorney’s Office for the Eastern District of New York, and Trial Attorney Debra Jaroslawicz of the Fraud Section are prosecuting the case. Assistant U.S. Attorney Karin Orenstein of the Office’s Civil Division is responsible for the forfeiture of assets.
The Defendant:
Syed Imran Ahmed
Age: 51
Residence: Glen Head, New YorkE.D.N.Y. Docket No. 14-CR-277 (DLI)
New York Doctor Sentenced to 13 Years in Prison for Multi-Million Dollar Health Care FraudRead the Press Release
A New York surgeon who practiced at hospitals in Brooklyn and Long Island was sentenced today to 156 months in prison for his role in a scheme that involved the submission of millions of dollars in false and fraudulent claims to Medicare.
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, U.S. Attorney Richard P. Donoghue of the Eastern District of New York, Assistant Director in Charge William F. Sweeney Jr. of the FBI’s New York Field Office and Special Agent in Charge Scott Lampert of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Office of Investigations made the announcement.
Syed Imran Ahmed M.D., 51, of Glen Head, New York, was sentenced by U.S. District Judge Dora L. Irizarry of the Eastern District of New York, who also ordered Ahmed to pay $7,266,008.95 in restitution, to forfeit $7,266,008.95, and to pay a $20,000 fine. Ahmed was convicted in July 2016 after an 11-day trial of one count of health care fraud, three counts of making false statements related to health care matters and two counts of money laundering.
“Medicare is a crucial program for many of the most vulnerable people in our society – American seniors and those with disabilities,” said Acting Assistant Attorney General Cronan. “In this case, Syed Ahmed put his own greed ahead of the trust we put in our medical professionals, draining over $7 million in precious funding from our Medicare program. His conviction and the sentence imposed in this case demonstrate the Department of Justice’s unwavering commitment to protecting public funds and the integrity of our health care system.”
“Dr. Syed Ahmed treated Medicare like a personal piggy bank, stealing over $7.2 million by making fraudulent claims for medical procedures he never performed,” stated U.S. Attorney Donoghue. “Dr. Ahmed will now pay the price for violating the trust that Medicare places in doctors. His 13-year prison sentence and the heavy payments imposed should send a powerful message of deterrence to other medical professionals who would seek to defraud vital taxpayer-funded programs like Medicare for personal enrichment. This Office, together with our law enforcement partners, will remain vigilant in rooting out health care fraud.”
“Health care fraud is often billed as a victimless crime, but that couldn’t be further from the truth,” said Assistant Director in Charge Sweeney. “Someone is always left to foot the bill. Insurers, the insured, and others are the ones who pay the price. Those who employ these schemes will most certainly be brought to justice, as we’ve proven here today.”
“The fraud scheme that Dr. Ahmed engaged in was motivated by pure greed,” said Special Agent in Charge Lampert. “HHS OIG and our law enforcement partners will continue to aggressively pursue all those who seek to unlawfully enrich themselves by victimizing participants of the Medicare program.”
According to evidence presented at trial, Ahmed, a surgeon who practiced at Kingsbrook Jewish Medical Center and Wyckoff Heights Medical Center in Brooklyn, Franklin Hospital in Valley Stream, and Mercy Medical Center in Rockville Centre, New York, billed the Medicare program for incision-and-drainage and wound debridement procedures that he did not perform. Ahmed wrote out lists of phony surgeries and sent the lists to his billing company in Michigan with instructions that they be billed to Medicare. Ahmed also directed that the surgeries be billed as though they had taken place in an operating room so as to increase the payout for the fraudulent scheme, the evidence showed.
The evidence introduced at trial showed that Medicare paid over $7 million to Ahmed for fraudulent claims.
The FBI and HHS-OIG investigated the case, which was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Eastern District of New York. Trial Attorney Debra Jaroslawicz of the Fraud Section, Assistant U.S. Attorney F. Turner Buford, formerly a Fraud Section trial attorney, and Senior Litigation Counsel Patricia Notopoulos of the Eastern District of New York are prosecuting the case.
The Fraud Section leads the Medicare Fraud Strike Force. Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 3,500 defendants who have collectively billed the Medicare program for more than $12.5 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
Two Brooklyn Men Indicted for Gunpoint KidnappingRead the Press Release
Earlier today, in federal court in Brooklyn, an indictment was unsealed charging Michael Crumble and Ramell Markus with kidnapping, extortion and possessing and brandishing a firearm in relation to those crimes. The defendants were arrested today and are 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, 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, the defendants kidnapped and viciously assaulted an individual for eight hours, forcing him to turn over narcotics and cash,” stated United States Attorney Donoghue. “This Office and our law enforcement partners, are committed to ridding our community of individuals, like these defendants, who are responsible for drug-related violence.” Mr. Donoghue gave particular thanks to the New York Metropolitan Safe Streets Task Force, which is comprised of agents from the FBI and detectives from the NYPD.
“Not only did the subjects in this investigation allegedly rob their victim, but kidnapped and tortured him to extract information. No human deserves to be beat, burned and pistol-whipped into submission,” stated FBI Assistant Director-in-Charge Sweeney. “The FBI Metro Safe Streets Task Force works each day with our law enforcement partners to uncover, and investigate cases to get these violent criminals off the streets and out of our communities.”
As alleged in the indictment and detailed in court filings, the defendants Michael Crumble and Ramell Markus, along with a third co-conspirator (“CC-1”), abducted, assaulted, and extorted a victim (“John Doe”) in the early morning hours of December 18, 2017. At that time, Doe left his home to meet Markus in Markus’s car. As Doe got into the backseat, Crumble and CC-1 came out of the shadows and pushed Doe further into the car, where CC-1 pressed a gun against Doe’s head. Markus, sitting in the front seat, told CC-1 to check Doe for any weapons and, if Doe had one, to shoot him in the face. Markus then took the gun from CC-1 and pistol-whipped Doe across the head. While in the vehicle, Markus demanded, in sum and substance, that Doe give Markus narcotics that the defendants believed Doe had at his home.
Subsequently, Markus, Crumble and CC-1 drove Doe to a residence in Brooklyn and forced him inside. The defendants again demanded that Doe give them money and narcotics, and also disclose an address where the perpetrators believed additional narcotics and money were located. To force Doe to comply, Markus broke a glass on Doe’s face, and CC-1 repeatedly burned both of Doe’s arms with a hot iron. Doe eventually called his fiancée and told her to gather his cash and narcotics, which Markus and Crumble retrieved from outside Doe’s home and then brought back to the residence with Doe and CC-1.
Not satisfied with the drugs and cash, the defendants and CC-1 continued to keep Doe captive, and drove him to a hotel. The perpetrators forced Doe to stay at the hotel while they waited for another individual to call Doe, who would supposedly provide the address that the defendants sought. After waiting a number of hours, the defendants forced Doe back inside the car and took him back to his home. Because Doe refused to provide the perpetrators with the address, they forced Doe to provide a pound of marijuana as collateral. In total, the defendants kidnapped Doe for approximately eight hours.
The charges in the indictment are merely allegations, and the defendants are presumed innocent unless and until proven guilty. If convicted of all counts, the defendants face a mandatory minimum of seven years’ imprisonment and a maximum of life imprisonment.
The government’s case is being handled by the Office’s Organized Crime and Gangs Section. Assistant United States Attorneys Keith D. Edelman and Lindsay K. Gerdes are in charge of the prosecution.
The Defendants:
MICHAEL CRUMBLE
Age: 34
Brooklyn, New YorkRAMELL MARKUS (also known as “Rah,” “Dollah” and “Smooth”)
Age: 35
Brooklyn, New YorkE.D.N.Y. Docket No. 18-CR-32 (ARR)
Queens Man Sentenced to 18 Years’ Imprisonment for ISIS-Directed Terrorist Attacks in New York CityRead the Press Release
Earlier today, at the federal courthouse in Brooklyn, Munther Omar Saleh was sentenced by United States District Judge Margo K. Brodie to 18 years’ imprisonment, to be followed by a term of 10 years’ supervised release. Saleh had pleaded guilty on February 10, 2017 to all counts in an indictment charging him with conspiring and attempting to provide material support to the Islamic State of Iraq and al-Sham (ISIS), and with assaulting and conspiring to assault federal officers.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, Edward C. O’Callaghan, Acting Assistant Attorney General for National Security, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and James P. O’Neill, Commissioner, New York City Police Department (NYPD), announced the sentence.
“Munther Omar Saleh and his coconspirators conducted attacks on members of law enforcement who worked tirelessly to keep our city safe,” stated United States Attorney Donoghue. “Saleh’s sentence will not only incapacitate the defendant for a significant period of time, but should also serve as a deterrent to those who contemplate waging violent jihad in New York City at the direction of a foreign terrorist organization. This Office, and our partners on the Joint Terrorism Task Force, will never relent in our efforts to hold terrorists accountable for their cowardly acts, including attacks on those who protect us.”
“Inspired by ISIS’s violent and hateful ideology, the defendant conspired with others to use a pressure-cooker bomb in a terrorist attack in New York and attempted to attack members of law enforcement who were conducting surveillance of him,” said Acting Assistant Attorney General O’Callaghan. “Today’s sentence is but one example of our resolve to bring to justice homegrown violent extremists who plot and attempt attacks on innocent people, including law enforcement agents, in the U.S. in the name of foreign terrorist organizations.”
“Saleh attempted to turn our city into a staging ground for violent attacks, including those aimed at both local and federal law enforcement officials. Directed by a known terrorist organization responsible for civilian massacres and other heinous crimes worldwide, he supported and attempted to facilitate the martyrdom of those with similar views,” stated FBI Assistant Director-in-Charge Sweeney. “Today’s sentencing promises he’ll remain behind bars for a significant period of time, upholding our faith in a justice system that has little compassion for those who wish to harm our way of life.”
As alleged in the indictment and in other court filings, Saleh, together with other coconspirators, assisted New Jersey resident Nader Saadeh’s planned travel to ISIS-controlled territory. Saleh personally accompanied Saadeh to John F. Kennedy International Airport where Saadeh departed on a flight for Jordan in the first leg of a planned trip to ISIS-controlled territory. Saadeh was subsequently apprehended and pleaded guilty in federal court in New Jersey to conspiring to provide material support to ISIS.
Working with ISIS attack facilitators located overseas, Saleh coordinated a plot to conduct a terrorist attack in New York City. Saleh sought and received instructions from ISIS attack facilitator Junaid Hussain to construct a pressure-cooker bomb and discussed with him potential targets for a terrorist attack in New York City, such as the Statue of Liberty. As detailed in court documents, Saleh informed ISIS attack facilitators that his coconspirators—five individuals located in New York and New Jersey—had confronted law enforcement officers who were surveilling them continuously. Saleh also sought and received authorization from Junaid Hussain permitting codefendant Fareed Mumuni to conduct a suicide “martyrdom” attack by using a pressure-cooker bomb against law enforcement officers who were following the coconspirators and thus preventing them from traveling to join ISIS.
On June 13, 2015, Saleh and another coconspirator were arrested in Queens after they attempted to attack members of law enforcement by charging at a federal officer who was performing physical surveillance of Saleh. Saleh and the coconspirator were armed with knives. The law enforcement officer reversed his vehicle into a multilane intersection and escaped the attack without incident or injury. On June 17, 2015, during the execution of a search warrant at his residence in Staten Island, Mumuni was arrested after he repeatedly stabbed an FBI agent in the torso with a large kitchen knife. Fortunately, the knife did not penetrate the agent’s protective body armor, and he sustained only minor injuries. In his post-arrest interview, Mumuni admitted that Saleh had informed him that an ISIS member had sanctioned Mumuni’s planned suicide attack on law enforcement and that Saleh and Mumuni had discussed using a pressure-cooker bomb to carry out the attack.
Mr. O’Callaghan and Mr. Donoghue also praised the agents, analysts and prosecutors for their dedication and commitment to this investigation and prosecution.
The government’s case is being handled by the Office’s National Security and Cybercrime Section. Assistant United States Attorneys Alexander A. Solomon, Douglas M. Pravda, and Ian C. Richardson are in charge of the prosecution, with assistance provided by Trial Attorney Robert Sander and Justin Sher of the National Security Division’s Counterterrorism Section.
The Defendant:
MUNTHER OMAR SALEH
Age: 22
Queens, New YorkE.D.N.Y. Docket No. 15-CR-393 (MKB)
New York Man Sentenced to 18 Years for ISIS-Directed Terrorist Attacks in New York CityRead the Press Release
Munther Omar Saleh, 22, of Queens, New York, was sentenced today to 18 years in prison, to be followed by a term of 10 years’ supervised release, for conspiring and attempting to provide material support to the Islamic State of Iraq and al-Sham (ISIS), a designated foreign terrorist organization, and for assaulting and conspiring to assault federal officers. Saleh pleaded guilty on Feb. 10, 2017, to all counts in the indictment.
Acting Assistant Attorney General for National Security Edward C. O’Callaghan, U.S. Attorney Richard P. Donoghue for the Eastern District of New York, Assistant Director in Charge William F. Sweeney, Jr. of the FBI’s New York Field Office and Commissioner James P. O’Neill of the NYPD made the announcement. The sentence was issued by U.S. District Judge Margo K. Brodie.
“Inspired by ISIS’s violent and hateful ideology, the defendant conspired with others to use a pressure-cooker bomb in a terrorist attack in New York and attempted to attack members of law enforcement who were conducting surveillance of him,” said Acting Assistant Attorney General O’Callaghan. “Today’s sentence is but one example of our resolve to bring to justice homegrown violent extremists who plot and attempt attacks on innocent people, including law enforcement agents, in the U.S. in the name of foreign terrorist organizations.”
“Munther Omar Saleh and his coconspirators conducted attacks on members of law enforcement who worked tirelessly to keep our city safe,” stated U.S. Attorney Donoghue. “Saleh’s sentence will not only incapacitate the defendant for a significant period of time, but should also serve as a deterrent to those who contemplate waging violent jihad in New York City at the direction of a foreign terrorist organization. This Office, and our partners on the Joint Terrorism Task Force, will never relent in our efforts to hold terrorists accountable for their cowardly acts, including attacks on those who protect us.”
“Saleh attempted to turn our city into a staging ground for violent attacks, including those aimed at both local and federal law enforcement officials. Directed by a known terrorist organization responsible for civilian massacres and other heinous crimes worldwide, he supported and attempted to facilitate the martyrdom of those with similar views,” said Assistant Director in Charge Sweeney. “Today’s sentencing promises he’ll remain behind bars for a significant period of time, upholding our faith in a justice system that has little compassion for those who wish to harm our way of life.”
As alleged in the indictment and in other court filings, Saleh and codefendant Fareed Mumuni conspired to support ISIS by helping their coconspirators attempt to travel to ISIS-controlled territory in order to join ISIS, and by plotting to use a pressure-cooker bomb to conduct a terrorist attack in the New York metropolitan area on behalf of ISIS.
On June 13, 2015, Saleh and another coconspirator were arrested in Queens after they attempted to attack members of law enforcement by charging at a federal officer who was performing physical surveillance of Saleh. Saleh and the coconspirator were armed with knives. Following his arrest, Saleh admitted to agents that he had discussed with Mumuni physically attacking the law-enforcement officers who were surveilling Mumuni. On June 17, 2015, during the execution of a search warrant at his residence in Staten Island, Mumuni was arrested after he repeatedly stabbed an FBI agent in the torso with a large kitchen knife. The knife did not penetrate the agent’s protective body armor, and he sustained minor injuries.
Mr. O’Callaghan and Mr. Donoghue praised the agents, analysts and prosecutors for their dedication and commitment to this investigation and prosecution.
The government’s case is being prosecuted by Assistant U.S. Attorneys Alexander A. Solomon, Douglas M. Pravda, and Ian C. Richardson, with assistance provided by Trial Attorneys Justin Sher and Bob Sander of the National Security Division’s Counterterrorism Section.
Three Individuals Charged with Conspiring to Defraud Unsuspecting Used Car Buyers in BrooklynRead the Press Release
A federal grand jury sitting in the Eastern District of New York returned an indictment charging Inna Chebanenko, Andrii Gerasymenko, and Georgy Zakalyugin with conspiracy to commit wire fraud. The defendants were arrested in Illinois last week and are scheduled to be arraigned this afternoon before United States Magistrate Judge James Orenstein in federal court in Brooklyn.
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 charge.
“As alleged in the indictment, the defendants profited through obtaining fraudulent titles to used cars in order to peddle salvaged or rebuilt vehicles to unsuspecting buyers,” stated United States Attorney Donoghue. “This Office, working with our law enforcement partners, is committed to protecting consumers and ensuring that they get what they are paying for.” Mr. Donoghue also expressed his grateful appreciation to the United States Postal Inspection Service, the New York State Department of Motor Vehicles, the Indiana Bureau of Motor Vehicles and the Delaware Division of Motor Vehicles for their assistance in the investigation.
“Most of us would not be able to pop the hood of a car and see for ourselves that there was damage or something seriously wrong with the vehicle. There are laws protecting consumers for a reason because fraudsters will use whatever means they can to make money illegally,” stated FBI Assistant Director-in-Charge Sweeney. “The FBI will continue to work with our law enforcement partners and other governmental agencies to do all we can to stop criminals from taking advantage of unsuspecting people.”
According to the court documents, between 2013 and 2016, the defendants conspired to defraud car buyers in Brooklyn and elsewhere by concealing the fact that the cars were “salvage” or “rebuilt” vehicles. Vehicles are given a “salvage” title when they have been destroyed or received substantial damage. Cars with “salvage” titles are worth a fraction of the value of a comparable car without a “salvage” title. By forging the signatures of non-existent Indiana law enforcement officers on the necessary certifications, the conspirators obtained car titles from the State of Indiana stating that the salvage cars had been “rebuilt,” indicating the cars had been repaired and restored to operational condition. However, the “rebuilt” status of the cars was concealed on the titles by, among other means, placing an automobile auction sticker on the title before selling the cars to unsuspecting buyers in Brooklyn and elsewhere at inflated prices. The buyers would then find themselves in possession of a vehicle with a value that was a fraction of the value-as-represented at the time of the sale.
The charges announced today are merely allegations and the defendants are presumed innocent unless and until proven guilty.
The government’s case is being prosecuted by Assistant United States Attorney G. Karthik Srinivasan.
The Defendants:
INNA CHEBANENKO
Age: 31
Elmhurst, IndianaANDRII GERASYMENKO
Age: 32
River Grove, IllinoisGEORGY ZAKALYUGIN
Age: 32
Chicago, IllinoisE.D.N.Y. Docket Nos. 18-CR- 51
Former Brooklyn Assistant District Attorney Sentenced for Illegal Wiretapping SchemeRead the Press Release
Earlier today, at the federal courthouse in Brooklyn, Tara Lenich, a former supervisory Assistant District Attorney with the Kings County District Attorney’s Office (KCDA), was sentenced by United States District Judge William F. Kuntz II to a year and one day in prison on each of the two counts, to be served concurrently, after having pled guilty on April 3, 2017 to two counts of illegally intercepting oral and electronic communications occurring over two cellular telephones.
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.
According to court filings and facts presented at the sentencing hearing, for nearly 18 months between approximately June 2015 and November 2016, Lenich illegally listened to phone conversations and viewed text messages sent to and from two cellular telephones. As part of her illegal conduct, she created fraudulent judicial orders and forged the signatures of multiple New York State judges onto judicial orders that purportedly authorized the KCDA to intercept communications occurring over the two cellular telephones. Lenich then misappropriated KCDA equipment to intercept, monitor, and record the communications to and from the two cellular telephones. In furtherance of her scheme, Lenich also created fraudulent search warrants, which she then used to obtain unlawfully intercepted text messages sent to and from the two cellular telephones. To conceal her scheme, Lenich lied to her colleagues at the KCDA, telling them that she was conducting a highly sensitive, confidential criminal investigation.
“Former Assistant District Attorney Lenich violated her duty to the public as a prosecutor when she engaged in her long-running illegal scheme,” stated United States Attorney Donoghue. “The victims of her scheme include the individuals whose privacy rights she violated by listening to and reading their private communications, the state court judges whose signatures she forged in order to perpetrate her scheme, the Kings County District Attorney’s Office whose reputation of integrity she damaged, and the public whose trust she betrayed. Today’s sentencing serves as a reminder that no one is above the law.” Mr. Donoghue expressed his appreciation to the KCDA for its cooperation.
“Without the appropriate legal authority to intercept and access communications, Lenich unlawfully listened in on personal conversations between her victims, evading the due process of law all public officials are expected to uphold,” stated FBI Assistant Director-in-Charge Sweeney. “It’s our hope today’s sentencing will send a strong message to anyone who thinks they can get away with this egregious abuse of power.”
The government’s case is being handled by the Office’s Public Integrity Section. Assistant United States Attorneys Maria Cruz Melendez and Robert Polemeni are in charge of the prosecution.
The Defendant:
TARA LENICH
Age: 42
New York, NYE.D.N.Y. Docket No. 17-CR-154 (WFK)
Leader of Drug Trafficking Organization Sentenced in Brooklyn Federal Court to 20 Years’ ImprisonmentRead the Press Release
Earlier today, in federal court in Brooklyn, Luis Bello was sentenced by United States District Judge Nicholas G. Garaufis to 20 years’ imprisonment to be followed by five years of supervised release after his conviction for conspiring to distribute more than five kilograms of cocaine, conspiring to launder money and trafficking in firearms. The defendant ran a cocaine distribution operation in the Bronx from 2011 until his arrest in September 2013.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, and Angel M. Melendez, Special Agent-in-Charge, United States Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI) New York, announced the sentence.
“Luis Bello oversaw a drug trafficking organization in the Bronx that brought large quantities of cocaine from Puerto Rico to the streets of New York City,” stated United States Attorney Donoghue. “Today he was held accountable, and his drug organization has been dismantled. We will continue to work with our law enforcement partners to stem the flow of drugs into our neighborhoods and prosecute traffickers like the defendant.” Mr. Donoghue also expressed his appreciation to the U.S. Drug Enforcement Administration, New York Field Office; Organized Crime Drug Enforcement Task Force, New York/New Jersey; U.S. Postal Service, Office of Inspector General; U.S. Marshals Service, Investigative Operations Division; Port Authority of New York & New Jersey Police Department; New York City Police Department and the Queens County District Attorney’s Office for their assistance during the investigation.
“Today’s 20 year sentencing of Bello effectively rids our community of the convicted leader of a dangerous drug trafficking and money laundering organization with ties to the Caribbean, that flooded the streets of New York with large quantities of cocaine,”
stated HSI Special Agent-in-Charge Melendez. “Bello will now have a lot of time to sit in his cell and think of how his actions have negatively affected the lives of so many individuals.”
According to court filings, the defendant was the head of a Bronx-based drug trafficking organization that brought more than 1,000 kilograms of cocaine from Puerto Rico to New York through drug couriers and through the United States Postal Service, distributed the drugs throughout the New York area, and laundered the proceeds from the sale of those drugs.
Members of Bello’s organization obtained drugs from the Dominican Republic to distribute in the New York area. Co-conspirators based in Puerto Rico shipped the drugs to Bello in New York through the U.S. mails, using the assistance of a mail carrier stationed at the Highbridge Postal Station in the Bronx, as well as through Post Office boxes rented by other members of the drug trafficking organization in New York and New Jersey. The postal carrier’s mail route included areas where Bello’s organization was based. The mail carrier regularly intercepted drug-laden packages that were addressed to other addresses on his route, but which he segregated based on tracking numbers and addresses, and delivered to Bello or other members of his organization.
After selling the drugs, Bello and other members his organization laundered the proceeds from the sale of these drugs through the banking system by exchanging small dollar denominations for large dollar denominations, typically $100 bills, that could be more easily transported by members of the drug organization when they traveled to Puerto Rico and the Dominican Republic to purchase more drugs. At least $620,000 in cash exchanges were made in accounts controlled by Bello’s organization. In one month alone in 2011, cash exchanges totaling approximately $58,000 were made in an account held in Bello’s name.
Members of the drug organization then bulk-cash smuggled the drug proceeds from New York to Puerto Rico and the Dominican Republic, hiding money in the pockets of jeans packed in luggage and in soap bottles.
Nine other defendants have pleaded guilty to conspiring to distribute cocaine or launder money as part of Bello’s drug trafficking organization. On February 13, 2017, Joel Aguilar was sentenced to 72 months’ imprisonment for his involvement in distributing at least 150 kilograms of cocaine. On November 2, 2017, U.S. postal carrier Jermaine Sandifer was sentenced to 60 months’ imprisonment for his involvement in distributing at least 150 kilograms of cocaine. On August 8, 2017, Bello’s cousin Carlos Bello Tirado was sentenced to 48 months’ imprisonment. On November 20, 2017, Ernest Pena was sentenced to time served for his involvement in distributing 85 kilograms of cocaine.
The government’s case is being handled by the Office’s International Narcotics and Money Laundering Section. Assistant United States Attorneys Douglas M. Pravda and Julia Nestor are in charge of the prosecution.
Defendant Sentenced Today:
LUIS BELLO
Age: 34
Residence: Bronx, New YorkDefendants Previously Sentenced:
JOEL AGUILAR
Age: 39
Residence: New York, New YorkCARLOS BELLO TIRADO
Age: 39
Residence: Leesburg, FloridaERNEST PENA
Age: 34
Residence: Bronx, New YorkJERMAINE SANDIFER
Age: 41
Residence: Perth Amboy, New JerseyDefendants Awaiting Sentencing:
EMIL SANCHEZ
Age: 27
Residence: Bronx, New YorkANA ABREU
Age: 34
Residence: Bronx, New YorkMARY ESTRELLA
Age: 27
Residence: Bronx, New YorkKELVIN CISNERO SANTOS
Age: 42
Residence: Bronx, New YorkSAUL OVALLES CORNIEL
Age: 36
Residence: Newark, New JerseyE.D.N.Y. Docket Nos. 13-CR-559 (NGG) & 16-CR-309 (NGG)
Former New York City Buildings Inspector Sentenced to 18 Months’ Imprisonment for Extortion ConspiracyRead the Press Release
Earlier today, in federal court in Brooklyn, former New York City Department of Buildings (DOB) Inspector Massimo Dabusco was sentenced by United States Chief District Court Judge Dora L. Irizarry to 18 months’ imprisonment for conspiracy to commit extortion, to be followed by a term of three years’ supervised release. The Court also imposed a $4,000 fine. Dabusco, also known as “Max,” pleaded guilty to the charge on May 22, 2017.
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 Mark G. Peters, Commissioner, New York City Department of Investigation (DOI), announced the sentence.
“By engaging in extortionate conduct for personal financial gain, Dabusco violated the mission entrusted to him to enforce the New York City building and construction codes honestly and fairly,” stated United States Attorney Donoghue. “This Office and our law enforcement partners will remain vigilant in rooting out corruption and prosecuting those, like Dabusco, who abuse their position of public trust.”
According to court filings, between December 2013 and June 2015, while serving as an inspector for the DOB, Dabusco was also a silent partner in a construction company, A&G Contracting Group Corp., in violation of New York City law. Dabusco used his official position to influence property owners and contractors, over whom he had regulatory authority, to hire A&G, which was operated by his co-defendant Vito Menadi, to perform excavation and demolition jobs. In exchange for his actions, Dabusco shared in A&G’s profits. Dabusco also illegally warned other contractors about impending inspections by DOB and threatened economic harm against property owners and contractors if they did not pay outstanding fines owed by A&G. Dabusco resigned from DOB in August 2015.
The government’s case is being handled by the Office’s Public Integrity Section. Assistant United States Attorney Martin E. Coffey is in charge of the prosecution.
The Defendant:
MASSIMO DABUSCO
Age: 55
Residence: Yorktown Heights, New YorkE.D.N.Y. Docket No. 16-CR-559 (DLI)
Brooklyn-Based Home Health Care Service and Its President Agree to Pay over $6.4 Million to Settle False Claims Act Suit Alleging Improper Billing PracticesRead the Press Release
Home Family Care, Inc. (HFC), a Brooklyn-based company that provides home health care services, and Alexander Kiselev, the co-owner and President of HFC, have entered into a civil settlement agreement under which they have agreed to pay $6,415,000 to resolve allegations that they violated the federal and state False Claims Acts by falsely billing Medicaid for home health care services that HFC did not provide to Medicaid recipients. HFC’s former Vice President, Michael Gurevich, entered into a separate settlement regarding the same allegations. The settlement agreements were approved by United States District Judge Sterling Johnson, Jr.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, announced the settlements.
“When health care providers seek and receive Medicaid funds for services that they never provided, they jeopardize the fiscal integrity of a critical health care program,” stated United States Attorney Donoghue. “We will hold health care providers accountable for their violations of federal law.” Mr. Donoghue thanked the Medicaid Fraud Control Unit of the Office of the New York State Attorney General, the Office of the Inspector General of the U.S. Department of Health and Human Services, and the New York Office of Field Operations and the Office of Associate Chief Counsel (New York) of U.S. Customs and Border Protection for their assistance in the investigation.
An investigation revealed that, from the time HFC began operating in or about 2008 until at least May 2014, HFC engaged in a fraudulent scheme to enrich itself at the expense of Medicaid by knowingly and systematically billing for home health aide and personal care aid services that were not in fact provided to Medicaid recipients. To carry out this scheme, HFC directed its employees to deliberately circumvent its own system for verifying the attendance of aides at the homes of Medicaid recipients for whom the aides were allegedly providing care and to deliberately circumvent HFC’s internal controls that purported to ensure that aides were present in the recipients’ homes.
The allegations were brought to the government’s attention through the filing of a complaint pursuant to the qui tam provisions of the False Claims Act. Under the Act, private citizens can bring suit on behalf of the United States and share in any recovery.
The United States’ case is being handled by Assistant United States Attorney Elliot M. Schachner of the Office’s Civil Division.
E.D.N.Y. Docket No. 10-CV-2490 (SJ)
Long Island Man Convicted of Armed Robbery of More Than $375,000 from Wells Fargo BankRead the Press Release
A federal jury in Central Islip, New York, returned a guilty verdict last night against Anael Sainfil on three counts of a superseding indictment charging him with conspiracy to commit armed bank robbery, armed bank robbery and brandishing firearms during a crime of violence. The verdict came after a four-day trial before Senior United States District Judge Leonard D. Wexler.
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 John Barry, Acting Commissioner, Suffolk County Police Department (SCPD).
“The brazen violence carried out by the defendant Anael Sainfil and his co-conspirators will not be tolerated,” stated United States Attorney Donoghue. “This Office, together with our law enforcement partners, is committed to protecting the public from those who put the lives of men, women and children in our community in jeopardy.” Mr. Donoghue expressed his appreciation to the FBI, NCPD and SCPD for their tireless efforts in bringing all participants involved in the robbery to justice.
The evidence at trial established that on November 9, 2015, the defendant, Anael Sainfil and his co-conspirators executed a plan to rob a Wells Fargo Bank branch in Hempstead, New York. The defendant acted as a lookout as his co-conspirators entered the bank armed with a semi-automatic assault rifle and numerous other firearms. While the defendant stood guard, an armed takeover of the bank took place. Tellers and customers, including an 8-year old boy, were zip-tied and held captive as the bank’s vault was emptied of over $375,000. The defendant and his cohorts were unaware that a bank teller had placed a wireless GPS tracker with the stolen money. Hempstead Police Department Officers initiated a pursuit, which resulted in the apprehension of one of the gunman that day. Following an extensive investigation by the FBI, NCPD and SCPD, all nine participants in the robbery conspiracy were ultimately apprehended, including Anael Sainfil, who was arrested on December 21, 2016. The proceeds of the robbery were recovered.
When sentenced, Sainfil faces a minimum of seven years’ imprisonment, and a maximum of life imprisonment.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorneys Mark E. Misorek and Erin Reid are in charge of the prosecution.
The Defendant:
ANAEL SAINFIL
Age: 22
Residence: Bay Shore, New YorkE.D.N.Y. Docket No. 16-CR-652 (S-1) (LDW)
Defendant Sentenced to 41 Months in Prison for Defrauding Mortgage Lending InstitutionsRead the Press Release
Earlier today, in federal court in Brooklyn, Dirk Hall was sentenced by United States District Judge Eric N. Vitaliano to 41 months’ imprisonment, to be followed by five years of supervised release, after having pleaded guilty to conspiracy to commit bank fraud and wire fraud in connection with a multi-million dollar mortgage fraud scheme.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, announced the sentencing. Mr. Donoghue thanked the Federal Bureau of Investigation (FBI); the Federal Housing Finance Agency, Office of Inspector General (FHFA-OIG); the U.S. Department of Housing and Urban Development, Office of Inspector General (HUD-OIG); the Federal Deposit Insurance Corporation, Office of Inspector General (FDIC-OIG); and the New York State Department of Financial Services (DFS) for their hard work and dedication over the course of this multi-year investigation and prosecution.
According to court filings and facts presented at the sentencing hearing, between September 2008 and May 2011, Hall, together with others, caused mortgage loan applications with false information to be submitted to lending institutions in connection with the purchase of residential properties located within the Eastern District of New York. These applications contained fraudulently inflated purchase prices, as well as false information about the assets and income of the purchasers of the properties, many of whom were being compensated as part of the scheme to act as straw purchasers. The defendant and his co-conspirators also provided false down payment checks to make it appear as if the straw purchasers and the other borrowers had made down payments in connection with the purchase of the properties, which was a condition of the lending institutions for issuing the mortgage loans.
To carry out their scheme, the defendant and his co-conspirators conducted simultaneous purchases and sales of the properties, sometimes called “flips,” in an effort to conceal their criminal involvement and to inflate the value of the properties. To that end, the defendant and his co-conspirators, through the use of backdated and falsified documents, concealed from the lending institutions the fact that the purchase and sale had occurred on the same day and made it appear as if the transaction between the homeowner and the co-conspirator had occurred over 60 days prior to the sale from the co-conspirator to the straw purchaser.
As a result of the false applications and appraisals, the lending institutions were fraudulently induced to issue millions of dollars of mortgage loans secured by properties that had inflated appraisal values to individuals who had insufficient income and assets to qualify for the mortgage loans. In many instances, the straw purchasers and the other borrowers failed to make required mortgage payments to the lending institutions, which caused the mortgage loans to be placed into default status.
The government’s case is being handled by the Office’s Business and Securities Fraud Section. Assistant United States Attorneys David C. Pitluck, Mark E. Bini and Michael T. Keilty are in charge of the prosecution.
The Defendant:
DIRK HALL
Age: 42
Queens, New YorkE.D.N.Y. Docket No. 14-CR-356 (S-1) (ENV)
Investment Fund Manager Sentenced in Brooklyn Federal Court to 36 Months’ Imprisonment for Orchestrating Multi-Million Dollar Fraud SchemesRead the Press Release
Earlier today, in federal court in Brooklyn, Diane W. Lamm, a manager of Capital L Financial Group, LLC (Capital L) and Aegis Capital Fund, LLC (Aegis Capital Fund), was sentenced to 36 months’ imprisonment having pled guilty to two counts of securities fraud for defrauding investors out of millions of dollars in two separate schemes. Lamm pled guilty to the charges on February 5, 2016. The Court also ordered Lamm to pay restitution to the victims in the amount $15,640,582.46. The sentencing took place before United States District Judge Frederic Block.
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.
“To support their luxurious lifestyles, Lamm and her co-defendant stole millions of dollars from investors and their retirement accounts,” stated United States Attorney Donoghue. “Today’s sentence sends a powerful message of deterrence to others who would consider deceiving investors. This Office, together with our partners at the FBI, is committed to holding financial fraudsters accountable for their conduct.”
“Investment advisers are required to act in the best interest of their clients. Lamm did just the opposite by taking advantage of those who trusted her with their money, benefitting personally from illegitimately obtained profits,” stated FBI Assistant Director-in-Charge Sweeney. “The FBI has dedicated a significant amount of resources to uncovering financial crimes targeted against individuals, businesses, and industries. Today’s sentencing serves as a fine example of our continued success in this area.”Between 2009 and 2013, Lamm was involved in two schemes to steal investors’ money. In the first, she and her co-defendant, John R. Lakian, obtained more than $11 million by promising Capital L investors that their money would be used to purchase, consolidate, and sell registered investment advisory businesses. Instead, Lamm and her co-defendant diverted more than $3 million to themselves and to entities, including hospitality businesses that they owned and controlled. In the second scheme, Lamm and her co-defendant embezzled money through their management of Aegis Capital Fund, a North Carolina-based investment fund that was placed into liquidation in 2011. Prior to the liquidation, Lamm and her co-defendant directed more than $2.4 million of Fund assets into hospitality businesses without informing the Fund’s investors that Lamm and her co-defendant owned and controlled these businesses. More than $1.9 million of the $2.4 million of Fund assets was never recovered by the investors. Additionally, following the Fund’s liquidation, instead of returning investment proceeds to investors, Lamm and her co-defendant diverted more than $2 million of investors’ money to themselves and to their hospitality businesses. The government has identified credit card charges and company expenses for purposes unrelated to the purchase, consolidation and sale of registered investment advisers. Charges were incurred, for example, for clothing, furniture and fine art from luxury stores such as Bergdorf Goodman, Gucci and Paul Stewart; stays at the Palace and Waldorf Astoria hotels in New York City; getaways at luxury resorts; and items for Lamm and her co-defendant’s restaurant business.
Lamm’s co-defendant, John R. Lakian, pleaded guilty in February 2016 to two counts of securities fraud. He was sentenced, on December 15, 2017, to 55 months’ imprisonment and ordered to pay restitution to the victims in the amount $15,640,582.46.The government’s case is being handled by the Office’s Business and Securities Fraud Section. Assistant United States Attorney Whitman G.S. Knapp is in charge of the prosecution. Assistant United States Attorney Karin Orenstein of the Office’s Civil Division is responsible for the forfeiture of assets.
The Defendant:DIANNE W. LAMM
Age: 57
New York, New York
E.D.N.Y. Docket No. 15-CR-0043 (FB)
Eastern District of New York U.S. Attorney’s Office Joins in Collections of over $3.4 Billion in Criminal and Civil Actions in Fiscal Year 2017Read the Press Release
United States Attorney Richard P. Donoghue announced today that the Eastern District of New York, working collaboratively with other offices as well as on its own, collected over $3.4 billion in criminal and civil actions in Fiscal Year 2017. Of this amount, $3,109,923,738 resulted from cases handled in conjunction with other U.S. Attorneys’ Offices and components of the Department of Justice. Collections from criminal and civil actions handled solely by the Eastern District of New York totaled $319,091,148, with $216,178,698 in criminal actions and $102,912,449 in civil actions.
“The Eastern District’s robust recoveries in Fiscal Year 2017 reflects the Office’s commitment to justice by combatting fraud and other misconduct, forfeiting the proceeds and instrumentalities of crime, and providing restitution to the victims of crime,” stated U.S. Attorney Donoghue.
Overall, the Department of Justice collected just over $15 billion in civil and criminal actions in the fiscal year ending September 30, 2017.
Additionally, working with partner agencies and divisions within the Department of Justice, the Eastern District forfeited $92,106,132 in assets tainted by crime. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
FY 2017 Collections Highlights
In January 2017, the Eastern District of New York, in conjunction with its partners, recovered $3.1 billion in civil penalties from Deutsche Bank under the Financial Institutions Reform, Recovery and Enforcement Act (FIRREA), to resolve claims related to Deutsche Bank’s conduct in the packaging, securitization, marketing, sale and issuance of Residential Mortgage Backed Securities (RMBS) prior to 2008. In a Statement of Facts that accompanied the settlement, Deutsche Bank admitted to making false representations and omitting material information from disclosures to investors about the loans in its RMBS securitizations.
In September 2017, AmerisourceBergen Specialty Group (ABSG), a wholly-owned subsidiary of AmerisourceBergen Corporation, one of the nation’s largest wholesale drug companies and number 11 on the Fortune 500 list, pled guilty to illegally distributing misbranded drugs. ABSG agreed to pay a total of $260 million to resolve criminal liability for its distribution of oncology supportive-care drugs from a facility that was not registered with the Food and Drug Administration (FDA).
Collections Overview
The U.S. Attorneys’ Offices, along with the Department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the Department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.
Brooklyn Man Sentenced to 100 Months’ Imprisonment for Gunpoint Robberies of PharmaciesRead the Press Release
Earlier today, in federal court in Brooklyn, Gregory St. Juste was sentenced to 100 months’ imprisonment by United States Chief District Judge Dora L. Irizarry for his role in three gun-point robberies of pharmacies. St. Juste had previously pled guilty on February 16, 2017 to Hobbs Act robbery conspiracy and brandishing a firearm during the conspiracy. On August 4, 2017, co-defendant Wensley Paul was sentenced to nine years’ imprisonment following his March 20, 2017 guilty plea to the same charges. On October 24, 2017 and November 15, 2017, respectively, co-defendants Max Narcisse, Jr. and Jeff Roselien pleaded guilty to the same charges and are awaiting sentencing.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, Ashan M. Benedict, Special Agent-in-Charge, New York Field Division, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and James P. O’Neill, Commissioner, New York City Police Department (NYPD), announced the sentence.
“Gregory St. Juste and his co-conspirators caused employees and customers to fear for their lives during the armed robberies of the targeted pharmacies,” stated United States Attorney Donoghue. “Besides terrorizing his victims, the defendant stole oxycodone pills to resell on the street, contributing to the deadly opioid epidemic. This Office and our law enforcement partners continue to work tirelessly to hold accountable those who seek to profit from this scourge that has taken such a great toll on the community.”
“St. Juste and his co-conspirators committed brazen acts of violence that endangered many in his community,” stated Special Agent-in-Charge Benedict. “The violence was driven by the desire to profit from peddling death in the form of pills sold to individuals suffering through addiction. Thanks to the efforts of local and federal law enforcement, St. Juste will no longer be in a position to harm his community. I would like to extend my gratitude to the United States Attorney’s Office for their work in prosecuting the case. I would also like to thank the Special Agents and NYPD Detectives of the ATF Joint Robbery Task Force for their investigative efforts that helped bring St. Juste to justice.”
According to court filings and statements at court proceedings, in August and September 2016, the defendants and their co-conspirators conducted a series of gunpoint robberies of pharmacies in Brooklyn. On August 16, 2016, two co-conspirators entered the Mill Basin Pharmacy on Avenue T. While inside, the perpetrators pulled out a revolver and entered the back of the pharmacy, causing store employees, one of whom was pregnant, to cower in the corner. The robbers made off with over $4,000 in prescription pills and merchandise, and escaped in a car driven by Roselien. On September 8, 2016, St. Juste and a co-conspirator entered This Way Pharmacy on Quentin Road. Inside the store, the robbers brandished a firearm, stole oxycodone pills and cash and again left in a getaway car driven by Roselien. On September 13, 2016, St. Juste and two other co-conspirators entered the Living Word Pharmacy located on Utica Avenue. St. Juste stormed into the back of the pharmacy and brandished a revolver. The robbers made off with oxycodone pills, employees’ cell phones and cash, and left in a getaway car driven by Roselien.
On September 26, 2016, St. Juste, Paul and Naricisse robbed the Mill Park Pharmacy on Avenue U. Upon entering the pharmacy, St. Juste pulled out a firearm and forced a store clerk to go behind a counter, demanding to know where the “oxy” was and threatening to shoot the clerk. Narcisse then went behind the counter to the cash register and placed cigarettes, cash and other items into a backpack, while Paul acted as a lookout. After a few minutes, the three perpetrators left the store and ran into the getaway car, which was driven by Roselien. Shortly after the perpetrators left the scene, NYPD officers recognized Roselien’s car from the prior robberies and pulled it over, arresting all four defendants. Upon searching the car, officers recovered a loaded, stolen .45 caliber pistol, as well as cash and the stolen merchandise.
The government’s case is being handled by the Office’s International Narcotics and Money Laundering Section. Assistant United States Attorney Keith D. Edelman is in charge of the prosecution.
Defendant Sentenced Today:
GREGORY ST. JUSTE
Age: 21
Brooklyn, New YorkDefendant Previously Sentenced:
WENSLEY PAUL
Age: 25
Brooklyn, New YorkDefendants Awaiting Sentencing:
MAX NARICSSE, JR.
Age: 25
Brooklyn, New YorkJEFF ROSELIEN
Age: 31
Brooklyn, New YorkE.D.N.Y. Docket No. 16-CR-554 (DLI)
Previously Convicted Sex Offender Sentenced to 12 Years’ Imprisonment for Transportation of Child PornographyRead the Press Release
Earlier today, in federal court in Central Islip, Angel M. Castillo was sentenced to 12 years’ imprisonment following his May 10, 2016 guilty plea to Transportation of Child Pornography in Interstate and Foreign Commerce. The sentencing proceeding was held before United States District Judge Joan M. Azrack. Castillo was also sentenced to 10 years’ supervised release to follow his prison sentence, during which time he must register as a sex offender and he will not be allowed unsupervised contact with minors.
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 John W. Barry, Acting Commissioner, Suffolk County Police Department (SCPD), announced the sentence.
According to court filings, in May 2014, Castillo was found by FBI agents and SCPD detectives to be sharing child pornography online via a peer-to-peer file sharing network. A search warrant was executed on Castillo’s residence in February 2015, at which time Castillo admitted that he had a sexual interest in children. He also admitted that he had been using the peer-to-peer network for about a year and a half to download child pornography and that he had saved images and videos to his computer. Law enforcement recovered from Castillo’s computer over 600 videos and over 10,000 still images of child pornography, including the abuse of infants and toddlers.
United States Department of the Navy records show that Castillo was convicted and received a General Court Martial on February 21, 2003, after a guilty plea to Indecent Acts and Liberties with a Child. Castillo received a bad conduct discharge from the Navy and was sentenced to 54 months’ in custody (with 24 months suspended).
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorney Allen L. Bode is in charge of the prosecution.
The Defendant:
ANGEL M. CASTILLO
Age: 44
Bay Shore, New YorkE.D.N.Y. Docket No. 15-CR-519
Long Island Man Sentenced to Eight Years’ Imprisonment for Downloading Child PornographyRead the Press Release
Earlier today in federal court in Central Islip, Christopher Robert Grief, also known as “Mookie,” was sentenced to eight years’ imprisonment following his June 15, 2017 guilty plea to Receiving Child Pornography in Interstate and Foreign Commerce. The sentencing proceeding was held before United States District Judge Joseph F. Bianco. Grief was also sentenced to lifetime supervised release to follow his prison sentence, during which time he must register as a sex offender and he will not be allowed unsupervised contact with minors.
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 John W. Barry, Acting Commissioner, Suffolk County Police Department (SCPD), announced the sentence.
According to court filings, Grief, who used the online identity “Mookie,” frequented online “Dark Web” forums devoted to the sexual torture of infants and toddlers. At the time of his arrest in September 2014, when a search warrant was executed on his residence, Grief admitted that he had a sexual interest in young children. He also admitted that he had been using the dark web forum for about a year to post and download child pornography and to chat about torture of children and animals. Grief further admitted that he had made and posted to the online forum a mutilation and torture video where he had abused a rat. Law enforcement recovered child pornography, including a video of the rape of a three-month-old baby on Grief’s computer. Grief has been incarcerated since his arrest.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorney Allen L. Bode is in charge of the prosecution.
The Defendant:
CHRISTOPHER ROBERT GRIEF (also known as “Mookie”)
Age: 30
Ridge, New YorkE.D.N.Y. Docket No. 14-CR-555
Brooklyn Gang Leader Convicted of Murder for Hire and Marijuana TraffickingRead the Press Release
Earlier today, following a two-week trial, a federal jury in Brooklyn returned guilty verdicts against Ronald Williams on five counts, including murder-for-hire conspiracy, conspiracy to commit obstruction of justice murder, and conspiracy to distribute marijuana. Williams, a leader of a street gang in Brooklyn known as the ‘90s Crew that engaged in large-scale marijuana trafficking, faces a mandatory sentence of life in prison when he is sentenced by United States District Judge LaShann DeArcy Hall.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, James J. Hunt, Special Agent-in-Charge, Drug Enforcement Administration, New York Division (DEA), and Angel M. Melendez, Special Agent-in-Charge for the Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI) New York, announced the verdict.
“Ronald Williams, a violent gang leader and marijuana trafficker, showed his utter disregard for human life when he accepted without hesitation a $5,000 contract to kill someone suspected of being an informant for federal law enforcement,” stated United States Attorney Donoghue. “The outstanding work by this Office, together with our law enforcement partners, prevented a murder from taking place and has made our streets safer as a result of the arrest, prosecution and conviction of the defendant.” Mr. Donoghue extended his grateful appreciation to the Bureau of Alcohol, Tobacco, Firearms and Explosives, U.S. Immigration and Customs Enforcement, the United States Marshal Service, and the New York City Police Department, for their assistance during the investigation.
“This conviction sets the record straight,” stated DEA Special Agent-in-Charge Hunt. “As a high level gang member, Ronald Williams will pay the price for his crimes. And this investigation demonstrates how DEA arrests those responsible for the by-products of drug trafficking: addiction, overdoses, crime, murders and violence.” SAC Hunt also thanked the U.S. Attorney’s Office EDNY, HSI, NYPD and ATF for their tireless efforts on this investigation.
“This drug pushing convicted felon was up to his old tricks, leading the notorious ‘90s Crew in Brooklyn. And, he put a dollar value on an individual’s life by agreeing to have the murder of a suspected informant carried out,” stated HSI Special Agent-in-Charge Melendez New York. “No one is invincible. We will continue working with the DEA and our other law enforcement partners to ensure that those who think they are above the law are brought to justice.”
The evidence at trial established that on April 26, 2013, DEA agents followed the co-defendant as he was making a delivery of marijuana to a customer in Brooklyn. The co-defendant spotted federal agents who were conducting surveillance and he fled, suspecting that his marijuana customer was an informant providing information to federal law enforcement. On April 30, 2013, the co-defendant called Williams and offered to pay him $5,000 to kill the individual he believed was a federal informant. Williams agreed to commit the murder and began planning the murder including selecting a gang member to carry out the contract. When the co-defendant told Williams that he would personally kill the suspected informant but wanted to have an alibi, Williams responded that it would better to pay someone else to kill the informant and “get it right.” However, federal agents were able to identify the potential victim, and the murder was not carried out.Williams was also convicted of being a felon in possession of a firearm and ammunition found during the execution of a search warrant at his residence, and using a firearm in connection with the charged drug trafficking crime. The items recovered during a search of Williams’ residence on East 96th Street in Brooklyn included three handguns and several pounds of marijuana, a drug ledger, a safe, and a police scanner. The co-defendant is awaiting trial.
The government’s case is being handled by the Office’s International Narcotics and Money Laundering Section. Assistant United States Attorneys Nathan D. Reilly and Hiral D. Mehta are in charge of the prosecution.The Defendant:
RONALD WILLIAMS (also known as “Blackman,” “Jermaine,” “Leon Gordon,” and Marcus Reese”)
Age: 43
Brooklyn, New YorkE.D.N.Y. Docket No. 13-CR-419 (LDH)
Federal Correctional Officer Convicted of Repeatedly Raping Female InmateRead the Press Release
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UPDATE
Following an order granting the defendant a new trial on certain charges, in February 2020, the defendant was again convicted of deprivation of civil rights, aggravated sexual abuse and sexual abuse.
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Earlier today, after a two week trial, a federal jury in Brooklyn returned a guilty verdict against Carlos Richard Martinez, a federal correctional officer employed by the United States Bureau of Prisons (BOP) on charges of deprivation of civil rights, aggravated sexual abuse, sexual abuse, and sexual abuse of a ward. The 20-count indictment covered four sexual assaults by Martinez from December 13, 2015 to April 2016, involving five separate sexual acts. Martinez faces a maximum sentence of life in prison when he is sentenced by United States District Judge Edward R. Korman.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, Ronald G. Gardella, Special Agent-in-Charge, United States Department of Justice, Office of the Inspector General, New York Field Office (OIG), and William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the verdict.
“As found by the jury, Carlos Richard Martinez willfully abused his position of power as a federal correctional officer by repeatedly raping a female inmate entrusted to his care at the Metropolitan Detention Center in Brooklyn,” stated United States Attorney Donoghue. “Martinez exploited the victim’s fear of being punished with additional jail time and other disciplinary action, but his attempts to intimidate the victim into silence ultimately failed as evidenced by her brave testimony at the trial. Martinez has now been held to account for violent, criminal misconduct that will never be tolerated in a correctional institution.”
“Martinez’s conduct was reprehensible. Today’s verdict sends a clear message that no correctional officer is above the law,” stated OIG Special Agent-in-Charge Gardella. “The OIG is fiercely committed to working with its law enforcement partners to investigate and prosecute instances of sexual abuse and abuse of power within our federal prison system.”
“While already serving time in prison, Martinez’s victim found herself trapped behind the bars of his abhorrent behavior,” stated FBI Assistant Director-in-Charge Sweeney. “Not only did Martinez engage in an outrageous act of sexual abuse, but he threatened the victim with severe punishment should she reveal his crime. There is only one place in society for those who use positions of power to violate the civil rights of others, especially in cases of outright forcible abuse, and that place is behind bars—not in front of them violating the rights of those they’re charged to watch.”
The evidence at trial established that over a five-month period from December 2015 to April 2016, Martinez, while serving as a lieutenant at the Metropolitan Detention Center in Brooklyn (MDC) with supervisory and disciplinary authority over inmates, used physical force and fear to repeatedly rape a sentenced female prisoner. The victim, who is identified in the indictment as “Jane Doe,” and testified at trial using the name “Maria,” spoke little English and worked as a cleaner inside the prison. Martinez directed Jane Doe and other female prisoners to clean on the second floor of the MDC’s East Building, including the lieutenant’s office. On December 13, 2015, Martinez’s sexually inappropriate remarks to Jane Doe escalated to violent, criminal conduct. While Jane Doe was preparing to clean the lieutenants’ office on that Sunday, Martinez exposed his erect penis, forcibly grabbed Jane Doe by the back of her head and forced her to perform oral sex on him. Then Martinez pulled down Jane Doe’s pants and underwear and raped her. Jane Doe expressed concern that she might become pregnant and begged Martinez to give her an emergency contraceptive pill, which he purchased at Rite Aid store near his home in Brooklyn. Martinez warned Jane Doe that she would be placed in the Special Housing Unit (SHU), and receive additional jail time to serve, if she told anyone what he had done. In the ensuing months, Martinez repeatedly raped Jane Doe while she cleaned on the weekend, when the lieutenants’ office area of the second floor of the MDC is generally empty. Jane Doe testified that during the attacks in his office, Martinez monitored security video footage on his computer of the area surrounding the lieutenants’ office to make sure that no one would discover him sexually assaulting her.
The government’s case is being handled by the Office’s Public Integrity Section. Assistant United States Attorneys Nicole M. Argentieri and Nadia I. Shihata are in charge of the prosecution.
The Defendant:
CARLOS RICHARD MARTINEZ
Age: 48
Residence: Brooklyn, New York,E.D.N.Y. Docket No. 17-CR-281 (ERK)
Florida Couple Pleads Guilty in Brooklyn Federal Court to Smuggling Protected LovebirdsRead the Press Release
Earlier today, in federal court in Brooklyn, Robert Burgos and Vanessa Burgos pleaded guilty to an illegal importation of wildlife conspiracy stemming from a scheme to illegally import a dozen Fischer Lovebirds from Indonesia and elsewhere into the United States without a required permit, in violation of the Endangered Species Act. Today’s proceeding took place before United States Magistrate Judge Ramon E. Reyes, Jr.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, and Edward Grace, Acting Chief of Law Enforcement, United States Fish and Wildlife Service (FWS), announced the guilty pleas.
Fischer Lovebirds, also known as Agapornis fischeri, are protected under the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES), an international treaty that protects wildlife that may become endangered due to the demands of international markets. As a result, Fischer Lovebirds may be imported into the United States from a foreign country only if the importer possesses a valid CITES export or re-export permit from the foreign country of origin.
As detailed in court filings, in late June 2015, a shipment of Fischer Lovebirds, arrived at John F. Kennedy International Airport in Queens, New York, from Madrid, Spain, falsely labelled as Rosy-Faced Lovebirds (or Agapornis roseicollis), which are not CITES-protected. The shipment was imported by Aviary La Familia, Inc., a Florida-based company operated by the defendants, who are married. During the time that the shipment was held at the United States Department of Agriculture (USDA) quarantine center in New York, the USDA sent photographs of the lovebirds to a forensic ornithologist at the FWS National Forensics Laboratory, who confirmed that the lovebirds were not Rosy-Faced Lovebirds, but were, in fact, Fischer Lovebirds.
When sentenced, the defendants each face a maximum sentence of five years’ imprisonment.
The government’s case is being prosecuted by Assistant United States Attorney Alicia N. Washington.
The Defendants:
ROBERT BURGOS
Age: 43
Residence: Avon Park, FloridaVANESSA BURGOS
Age: 33
Residence: Avon Park, FloridaE.D.N.Y. Docket No. 17-CR-329 (FB)
Crips Gang Member to Serve A Total of 28 Years in Prison for Federal and State ConvictionsRead the Press Release
Earlier today, at the federal courthouse in Central Islip, Rudy Montour, a Crips street gang member, was sentenced by United States District Judge Joanna Seybert to 15 years of imprisonment following his April 2017 plea of guilty. The charge arose out of the defendant’s participation in the Rollin’ 60s set of the Crips, a street gang based in Roosevelt, New York, that was responsible for gun violence and drug trafficking for over a decade. The sentence was imposed to run consecutive to a 13-year New York State prison term of incarceration that Montour is currently serving, thereby requiring him to serve a total of 28 years.
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, Acting Commissioner, Nassau County Police Department (NCPD), announced the sentence.
“Rudy Montour chose to kill for the Crips, and now he can serve time for the gang,” stated United States Attorney Donoghue. “This conduct will not be tolerated and today’s sentence should send a message that this Office, together with our law enforcement partners, will pursue and prosecute members of violent street gangs who seek to inflict violence and fear on our communities.” Mr. Donoghue extended his grateful appreciation to the law enforcement agencies involved in the investigation, in particular the FBI’s Long Island Gang Task Force and the Gang Investigations Squad of the NCPD.
“The investigation into the Rollin’ 60 Crips had a significant impact on the community in Nassau County, stopping years of violence and crime,” stated FBI Assistant Director-in-Charge Sweeney. “The FBI Long Island Gang Task Force worked side-by-side with our law enforcement partners to bring down this criminal enterprise, and the pressure we are putting on these gangs won’t go away.”
“Defendant Montour is a known gang member and will face severe consequences for his role in the death of Jason Crafton,” stated NCPD Acting Commissioner Ryder. “The Crips and other violent gangs are committing heinous crimes, thus destroying the fabric of our communities and is not acceptable. The Nassau County Police Department has zero tolerance for these gangs and will continue to work cohesively with our law enforcement partners to eliminate them from our communities in order to keep our families and children safe. A job well done by all of our investigative partners.”
According to court filings and statements made during the guilty plea, Montour, also known as “Sus-1,” pleaded guilty to the June 13, 2010 murder of 27-year-old Jason Crafton. Montour shot and killed Crafton outside of a house party in Uniondale, New York for disrespecting a fellow Crips gang member. In addition to the murder of Jason Crafton, Montour was responsible for several robberies committed on behalf of the Crips, including the robbery of an aspiring rapper in Roosevelt, as well as trafficking several firearms from Alabama to New York for the gang to use in its war against the rival Bloods street gang. Montour, who competed with fellow Crips member, Eric Smith, for the title of “top shooter” within the gang, is currently serving a 13-year state prison sentence for attempted murder for his involvement in a 2011 shooting directed at the home of a rival gang member in Freeport, New York.
The government’s investigation has led to the arrest and conviction of more than 20 members and associates of the Rollin’ 60s Crips, including its founder Raphael Osborne, who was sentenced in January 2017 to three life sentences plus 145 years. Eric Smith, the gang’s most violent member, was convicted of racketeering and murder in aid of racketeering, among other charges and faces a mandatory life sentence. To date, 11 defendants have been sentenced since the inception of the case:
- on June 21, 2016, Jahmani Hamilton was sentenced to a term of imprisonment of ten years;
- on August 4, 2016, Kurtis Philip was sentenced to a term of imprisonment of ten years;
- on August 5, 2016, Courtney Smith was sentenced to a term of imprisonment of ten years;
- on September 23, 2016, Merlyn Benitez was sentenced to a term of imprisonment of ten years;
- on October 13, 2016, Derick Hernandez was sentenced to a term of imprisonment of 20 years that will run consecutively to a four-year state sentence that he is presently serving;
- on October 19, 2016, Kwame Lake was sentenced to a term of imprisonment of five years that will run consecutively to an eight-year state sentence that he is presently serving;
- on November 4, 2016, Tyshawn Gitto was sentenced to 13 years’ imprisonment;
- on January 13, 2017, Branden Short was sentenced to 30 months’ imprisonment;
- on January 13, 2017, Raphael Osborne was sentenced to three life terms, plus 145 years’ imprisonment;
- on April 21, 2017, Rommel Lobban was sentenced to 15 years’ imprisonment;
- on April 25, 2017, Daquanne Nunn was sentenced to 13 years’ imprisonment; and
- the remaining defendants are pending sentence.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorneys Nicole Boeckmann, Christopher C. Caffarone and Michael Maffei are in charge of the prosecution.
The Defendant:
RUDY MONTOUR (also known as “Sus-1”)
Age: 30
Roosevelt, Long IslandE.D.N.Y. Docket No. 14-CR-264 (JS)
Leader of Queens-Based Child Sex Trafficking Ring Sentenced to 15 Years’ ImprisonmentRead the Press Release
Earlier today in federal court in Brooklyn, Michael Andres Miller was sentenced to 15 years’ imprisonment by United States District Judge Kiyo A. Matsumoto for trafficking minors for sex in Queens, New York, New Jersey, and Pennsylvania. Miller previously pled guilty to this crime on May 9, 2017. Miller was also ordered to pay restitution in the amount of $9,500 to the minor victims identified in the indictment as Jane Doe #1, Jane Doe #2 and Jane Doe #3.
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.
“The defendant Michael Andres Miller targeted and recruited young girls to engage in prostitution with adult men for his personal profit and without regard for the harm he was causing these vulnerable victims,” stated United States Attorney Donoghue. “Today’s sentence holds the defendant accountable for his predatory conduct. This Office, together with our law enforcement partners, will continue to investigate and prosecute those who seek to profit from the sexual exploitation of children.”
“Children are supposed to be protected by adults, not used as a means to make money,” stated FBI Assistant Director-in-Charge Sweeney. “The mere idea that this man sold girls, one as young as 14, and even used them for his own sexual gratification boggles the mind. The FBI New York Child Exploitation Task Force, which includes the NYPD and other state and local law enforcement agencies, will continue to do all it can to stop these sex traffickers from taking advantage of young girls.”
According to court filings, the defendant oversaw a sex trafficking ring that preyed upon girls as young as 14 years old. He recruited girls online, using popular social media applications including “Meet Me” and “Kik,” posted advertisements for them and prostituted them through the web site Backpage.com, and had sex with at least two of these young girls. In August 2016, police officers arrested the defendant and a co-defendant in a hotel room in Pennsylvania, where they also recovered the middle school identification card of one of the defendant’s victims, who the defendant was prostituting at nearby hotels.
The government’s case is being handled by the Office’s Civil Rights Section. Assistant United States Attorney Nomi D. Berenson is in charge of the prosecution.
The Defendant:
MICHAEL ANDRES MILLER (also known as “Jason m,” “mikegmiller” and “Jay”)
Age: 26
Brooklyn, New YorkE.D.N.Y. Docket No. 16-CR-536
Brooklyn Assemblywoman Indicted for Multiple Fraud Schemes and Obstructing JusticeRead the Press Release
An 11-count indictment was unsealed today in federal court in Brooklyn, New York, charging Pamela Harris, a New York State Assemblywoman representing Bay Ridge, Coney Island, Dyker Heights and other nearby communities, with two counts of wire fraud, one count of conspiracy to commit wire fraud, four counts of making false statements, two counts of bankruptcy fraud, one count of witness tampering and one count of conspiracy to obstruct justice. Harris’s arraignment on the indictment is scheduled for this afternoon before United States Magistrate Judge Ramon E. Reyes, Jr.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Mark G. Peters, Commissioner, New York City Department of Investigation (DOI), announced the charges.
“As alleged in the indictment, the defendant defrauded government agencies out of tens of thousands of dollars in public funds and tried to fraudulently obtain even more,” stated United States Attorney Donoghue. “She conducted her schemes victimizing the federal and New York City governments, and then obstructed a federal investigation into her crimes while a sitting New York State Assemblywoman. When she learned that law enforcement was investigating her various fraud schemes, she pressured witnesses to lie to the FBI and cover them up. This Office and our law enforcement partners are committed to ensuring that those who serve the public are held accountable under the law to the same extent as the people they are privileged to serve.”
“Both before and during her tenure as a public servant, as alleged, Assemblywoman Pamela Harris went to great lengths to defraud local and federal agencies out of thousands of dollars,” stated FBI Assistant Director-in-Charge Sweeney. “In fact, at a time when many residents in her district were dealing with the horrific aftermath of Hurricane Sandy, Harris was busy brewing a storm of her own, one that resulted in her receiving significant payouts by the very federal agency charged with helping those truly in need. As if these allegations weren’t enough, Harris allegedly obstructed a federal investigation into the matters at hand, asking others to lie on her behalf, as alleged. These types of crimes threaten the financial stability of our local and federal governments, but when a public official is involved, even more is at risk. Today we are proud to put an end to this inexcusable scheme.”
“The brazen corruption charged as a result of this investigation tramples on the very definition of a public servant,” stated DOI Commissioner Peters. “This elected official exploited the public she was elected to serve by stealing from City and federal programs and then concealing the fraud with false statements and asking witnesses to obstruct the investigation, according to the indictment. DOI thanks the United States Attorney’s Office for the Eastern District of New York and the FBI for their partnership in working together to expose the array of wrongdoing charged in this indictment.”
As alleged in the indictment, between 2012 and 2016, the defendant defrauded various government agencies, including the New York City Council (“NYC Council”), New York City Department of Youth and Community Development (“DYCD”), Federal Emergency Management Agency (“FEMA”), United States Department of Housing and Urban Development (“HUD”), the New York City Build it Back Program (“NYC Build it Back Program”) and United States Bankruptcy Court for the Eastern District of New York (“U.S. Bankruptcy Court”).
NYC Council / DYCD Fraud Scheme.
Between August 2014 and July 2015, the defendant, who was at the time the Executive Director of a not-for-profit organization located in Brooklyn, defrauded the NYC Council of nearly $23,000 in discretionary funding by falsely claiming that the not-for-profit would use the funds to rent a studio space. As part of her scheme, the defendant submitted to DYCD—the government entity responsible for administering and disbursing the NYC Council’s discretionary funds—a forged lease agreement. Once the not-for-profit received the funding, the defendant diverted the funds to her personal checking account and used the money to pay for personal expenses.
The following year, between approximately July 2015 and January 2017, the defendant committed a nearly identical scheme—this time as a sitting Assemblywoman. The defendant again defrauded the NYC Council by claiming that funds would be spent on rental space. In fact, when the not-for-profit received the discretionary funding, the defendant diverted the funds—this time, $11,400—for her personal use.
FEMA Fraud Scheme.
Between 2012 and 2014, the defendant defrauded FEMA out of nearly $25,000 by falsely claiming to FEMA she had been forced out of her residence by Hurricane Sandy. The defendant represented to FEMA that her Coney Island residence was so damaged by Hurricane Sandy that she had to move to a temporary residence in Staten Island after the storm. In furtherance of the scheme, the defendant submitted to FEMA fake lease agreements that she had purportedly entered into with the landlord of the Staten Island residence, as well as bogus rent payment receipts. In reality, the defendant continued to live at her Coney Island residence and pocketed the FEMA payments for herself.
HUD/Build it Back Fraud Scheme.
In 2016, while she was a sitting New York State Assemblywoman, the defendant repeated the same misrepresentations and submitted the same fake documents to the NYC Build it Back Program in order to obtain additional financial assistance. She also made other false claims in order to persuade Build it Back to pay for substantial construction to her home.
Bankruptcy Fraud Scheme.
In November 2013, the defendant filed for Chapter 13 bankruptcy protection in the United States Bankruptcy Court in Brooklyn. The defendant, who at the time of her filing was receiving $1,550 each month from FEMA based on the misrepresentations described above, told the Bankruptcy Trustee that she was receiving $1,200 a month in financial assistance from the same landlord that she told FEMA she was paying $1,550 a month in rent. Neither statement was true.
Obstruction of Justice and Witness Tampering.
Finally, between March 2017 and May 2017, after the defendant became aware of the grand jury’s investigation into her various fraud schemes, she instructed witnesses to lie to FBI agents conducting the grand jury investigation, which the witnesses did.
The charges in the indictment are merely allegations, and the defendant is presumed innocent unless and until proven guilty. If convicted, the defendant faces a maximum sentence of 30 years’ imprisonment on one of the charges relating to making false statements to FEMA; a maximum sentence of 20 years’ imprisonment on each of the wire fraud conspiracy, wire fraud, witness tampering, or obstruction of justice conspiracy charges; and a maximum sentence of five years of imprisonment on each of the bankruptcy fraud or other false statements charges.
The government’s case is being handled by the Office’s Public Integrity Section. Assistant United States Attorneys Erik Paulsen and Robert Polemeni are in charge of the prosecution.
The Defendant:
PAMELA HARRIS
Age: 57
Brooklyn New YorkE.D.N.Y. Docket No. 18-CR-11 (JBW)
International Narcotics Distributor Sentenced to 20 Years’ Imprisonment for Trafficking Narcotics and Laundering Millions of DollarsRead the Press Release
Earlier today at the federal courthouse in Brooklyn New York, Salvador Jimenez Uribe, also known as “Salvador Uribe Jimenez,” an international narcotics distributor and money launderer, was sentenced by United States District Judge Raymond J. Dearie to 20 years’ imprisonment for narcotics and money laundering charges, including international cocaine importation conspiracy, international narcotics distribution conspiracy, narcotics distribution conspiracy, and money laundering conspiracy.
The sentence was announced by Richard P. Donoghue, United States Attorney for the Eastern District of New York, and James J. Hunt, Special Agent-in-Charge, Drug Enforcement Administration (DEA), New York Division.
“The defendant trafficked kilograms of cocaine and heroin from South America and Mexico for distribution in the United States, flooding our streets with dangerous drugs, and laundered millions of dollars in narcotics proceeds,” stated United States Attorney Donoghue. “This sentence demonstrates that those who seek to profit from importing and distributing narcotics in our country will be held accountable.”
According to court filings and facts presented during court proceedings, the defendant smuggled cocaine, marijuana and heroin across the U.S.-Mexican border, concealing the narcotics in tractor-trailer trucks operated by associates of Mexican drug cartels and delivering the narcotics to co-conspirators in the New York-area. The defendant also laundered millions of dollars in narcotics proceeds using a Queens-based jewelry store, which sent the money to Mexico. The defendant also facilitated the transport of large quantities of cocaine from Ecuador to the United States, concealing the cocaine in the flaps of cardboard boxes containing bananas, shipped by an Ecuadorian company.
The government’s case is being handled by the Office’s International Narcotics and Money Laundering Section. Assistant United States Attorneys Hiral D. Mehta and Craig R. Heeren are in charge of the prosecution.
The Defendant:
SALVADOR JIMENEZ URIBE
Age: 52
Residence: Guadalajara, MexicoEDNY Docket No. 12-CR-603 (RJD)
Attorney General Jeff Sessions Selects Eastern District of New York to Receive Two New Assistant United States Attorney Positions to Combat Violent CrimeRead the Press Release
Attorney General Jeff Sessions has selected the Eastern District of New York to receive additional resources for the fight against violent crime. The district will receive two additional Assistant U.S. Attorney positions to focus exclusively on violent crime, two of 40 new federal prosecutors in 27 selected locations throughout the United States.
“Led by our 94 United States Attorney’s Offices, Project Safe Neighborhoods (PSN) task forces are hitting the streets across America to apprehend and bring violent criminals to justice,” stated United States Attorney General Sessions. “I have asked Congress for additional PSN funding because I believe nothing will be more effective at reducing violent crime. “Under this program, I am asking a great deal of our United States Attorneys. I am both empowering them and holding them accountable for results. To put them in the best position to impact and reduce violent crime, it is my privilege to announce that through a re-allocation of resources, we will be enlisting and deploying 40 additional violent crime prosecutors across the United States.”
“The provision of additional Assistant U.S. Attorney positions reflects the commitment of the Department of Justice to reduce violent crime by identifying and prosecuting gang members whose destructive conduct endangers residents of our District,” stated United States Attorney Donoghue. “Using every law enforcement resource available, this Office and the FBI’s Long Island Gang Task Force will continue to work tirelessly to make our communities safer by bringing to justice those violent criminals who show no regard for human life.”
The two additional federal prosecutors will enhance the Office’s ability to prosecute violent crimes committed by members and associates of La Mara Salvatrucha, also known as the MS-13, a transnational criminal organization, with the objective of continuing and increasing the Office’s efforts to dismantle and incapacitate the MS-13 within the Eastern District of New York and beyond. The prosecutors will also focus on other violent gangs such as the Crips, Bloods, Latin Kings, 18th Street gang, Salvadorans with Pride, and Outlaw motorcycle gangs, all of which have a significant presence in the District.
More information on the locations of those 40 Assistant United States Attorneys and violent crime task forces is below:
AUSA Breakdown by District
Northern District of Alabama: 1
Eastern District of Arkansas: 1
Northern District of California: 2
Southern District of California: 1
District of Connecticut: 1
District of Columbia: 1
Central District of Illinois: 1
Northern District of Illinois: 3
Southern District of Indiana: 1
Eastern District of Louisiana: 1
District of Maryland: 3
Western District of Michigan: 1
Eastern District of Missouri: 2
Western District of Missouri: 1
District of Nevada: 2
District of New Mexico: 1
Eastern District of New York: 2
Western District of New York: 1
Northern District of Ohio: 2
Eastern District of Pennsylvania: 1
Middle District of Tennessee: 2
Western District of Tennessee: 2
Eastern District of Texas: 1
Northern District of Texas: 1
Southern District of Texas: 2
Western District of Texas: 1
Eastern District of Wisconsin: 2Former Executive Managing Director of Och-Ziff Capital Management Indicted for Defrauding Client and Obstruction of JusticeRead the Press Release
A former executive managing director of Och-Ziff Capital Management Group LLC (Och-Ziff), a New York-based hedge fund, was charged in an indictment unsealed today for his alleged participation in a scheme to defraud one of the hedge fund’s clients, a large charitable foundation, when recommending financial investments relating to the African mining sector.
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, Acting U.S. Attorney Bridget M. Rohde of the Eastern District of New York, Assistant Director in Charge William F. Sweeney Jr. of the FBI’s New York Field Office and Special Agent in Charge James D. Robnett of the Internal Revenue Service-Criminal Investigation’s (IRS-CI) New York office made the announcement.
Michael Leslie Cohen, 46, of London, England was charged with one count of conspiracy to commit investment adviser fraud, one count of investment adviser fraud, one count of conspiracy to commit wire fraud, four counts of wire fraud, one count of conspiracy to obstruct justice, one count of obstruction of justice and one count of making false statements. The indictment was returned under seal by a federal grand jury sitting in Brooklyn, New York on Oct. 5, 2017, and relates to Cohen’s alleged conduct between 2008 and 2013.
The indictment alleges that, beginning in or about 2008, Cohen and his co-conspirators carried out a scheme to defraud an Och-Ziff client, a large charitable foundation. According to the indictment, Cohen violated his fiduciary duties to the charitable foundation by making material misrepresentations and concealing conflicts of interest in connection with a proposed investment in an African mining company. The indictment alleges, among other things, that Cohen failed to disclose to the charitable foundation that one of the sellers of the African mining company shares owed Cohen millions of dollars on a delinquent $18 million personal loan that Cohen had made to the seller to finance the purchase of a luxury yacht. The seller allegedly paid approximately $4 million of the African mining company share proceeds to Cohen in repayment of the personal yacht loan. Cohen did not disclose to the charitable foundation that he had a personal interest in the African mining company and that a portion of shares he controlled would be sold as part of the transaction, the indictment alleges.
In addition, the indictment alleges that in order to conceal his fraudulent scheme and self-dealing, Cohen conspired with others to cover up facts about the transaction after the U.S. Securities and Exchange Commission (SEC) began investigating Och-Ziff in 2011. Cohen and others allegedly engaged in a number of acts to obstruct investigations, including concocting a false, backdated letter and making false statements to federal agents and the SEC.
The charges in the indictment are merely allegations, and the defendant is presumed innocent unless proven guilty beyond a reasonable doubt in a court of law.
The FBI’s New York Field Office and IRS-CI’s New York office are investigating the case. Trial Attorney Gerald M. Moody Jr. of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys David C. Pitluck, James P. McDonald, a former Fraud Section trial attorney, and Jonathan P. Lax of the Eastern District of New York are prosecuting the case. The Criminal Division’s Office of International Affairs provided significant assistance in this matter. The Department appreciates the significant cooperation and assistance provided by the SEC’s Boston Regional Office in this matter.
Former Executive Managing Director of Och-Ziff Capital Management Indicted for Defrauding Charitable Foundation and Obstructing JusticeRead the Press Release
A 10-count indictment was unsealed today, in federal court in Brooklyn, charging Michael Leslie Cohen, a former executive managing director of New York-based hedge fund Och-Ziff Capital Management Group LLC (“Och-Ziff”), for his alleged participation in a scheme to defraud one of the hedge fund’s clients, a large charitable foundation, when recommending financial investments relating to the African mining sector. Cohen is charged with one count of conspiracy to commit investment adviser fraud, one count of investment adviser fraud, one count of conspiracy to commit wire fraud, and four counts of wire fraud. Cohen is also charged with conspiring to obstruct federal grand jury and U.S. Securities and Exchange Commission (SEC) investigations and making false statements to federal agents. The indictment was returned under seal by a federal grand jury sitting in Brooklyn, New York on October 5, 2017, and relates to Cohen’s alleged conduct between 2008 and 2013.
Bridget M. Rohde, Acting United States Attorney for the Eastern District of New York, Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and James D. Robnett, Special Agent-in-Charge, Internal Revenue Service Criminal Investigation, New York (IRS-CI), announced the charges.
“As alleged, Michael Cohen violated his fiduciary duties as an investment advisor, deceiving a charitable foundation, in order to enrich himself and his associates,” stated Acting United States Attorney Rohde. “The deceit continued when he learned that the U.S. government was investigating his activities, was confronted with evidence of the alleged crimes and responded with a cover-up. The charges announced today reflect this Office’s commitment, together with our law enforcement partners, to hold accountable those in the finance industry who defraud investors.” Ms. Rohde thanked the SEC, Boston Regional Office, for its significant cooperation and assistance during the investigation.
“As alleged, Cohen turned his back on his fiduciary duties, profiting from the investments of his clients, essentially double dipping at their expense. His further actions of obstructing justice and lying to federal agents speak to his blatant disregard for integrity and the rule of law,” stated FBI Assistant Director-in-Charge Sweeney. “Today's indictment maintains our resolve to hold accountable those who engage in this type of corrupt and illegal activity.”
“Today’s indictment of Mr. Cohen, a former Managing Director of one of the largest hedge funds, alleges the misuse of his position of trust to deceive a charitable foundation,” stated IRS-CI Special Agent-in-Charge Robnett. “IRS-CI will continue to investigate executives who mislead investors and violate the public trust.”
The indictment alleges that, beginning in or about 2008, Cohen and his co-conspirators carried out a scheme to defraud a large charitable foundation and investor (the “Charitable Foundation”). Cohen violated his fiduciary duties to the Charitable Foundation by making material misrepresentations and omissions in connection with a proposed investment in shares of an African mining company. Through an Och-Ziff investment fund and joint venture overseen by the defendant, Cohen fraudulently induced the Charitable Foundation to consent to the purchase of shares in the African mining company without disclosing numerous conflicts of interest that existed in the transaction. Among other things, Cohen failed to disclose that one of the proposed sellers of the shares personally owed Cohen $18 million – for a loan used to finance a luxury yacht – and would use the proceeds from the sale of shares to partially repay his debt to Cohen. Cohen also failed to disclose that he personally controlled another portion of the shares in the African mining company that would be sold as part of the transaction.
The indictment further alleges that in order to conceal his fraudulent scheme and self-dealing, Cohen conspired with others to cover up facts about the transaction after the SEC began an investigation of Och-Ziff in 2011. Cohen and others engaged in a number of acts to obstruct both the federal grand jury and SEC investigations, including concocting a false, backdated letter and making false statements to federal agents and the SEC.
The charges in the indictment are merely allegations, and the defendant is presumed innocent unless and until proven guilty.
The case is being handled by the Office’s Business and Securities Fraud Section and the Criminal Division’s Fraud Section. Assistant United States Attorneys David C. Pitluck, James P. McDonald and Jonathan P. Lax, and Trial Attorney Gerald M. Moody, Jr., are in charge of the prosecution. The Criminal Division’s Office of International Affairs provided significant assistance in this matter.
The Defendant:
MICHAEL LESLIE COHEN
Age: 46
Residence: London, England
E.D.N.Y. Docket No. 17-CR-544 (NGG)
Attorney General Jeff Sessions Appoints Richard P. Donoghue as Interim United States Attorney for the Eastern District of New YorkRead the Press Release
Attorney General Jeff Sessions today announced the appointment of Richard P. Donoghue as Interim United States Attorney for the Eastern District of New York, pursuant to 28 U.S.C. § 546, which provides that “the Attorney General may appoint a United States Attorney for the district in which the office of United States Attorney is vacant.” This appointment will take effect on January 5, 2018.
“When I became Attorney General, President Trump gave me clear orders to go after MS-13,” stated United States Attorney General Jeff Sessions. “Since then, this Department of Justice has been relentless, arresting hundreds of MS-13 members from Los Angeles to Long Island. Today, I am appointing someone as Interim United States Attorney for Eastern District of New York who has tremendous experience prosecuting MS-13: Richard Donoghue. As a federal prosecutor for more than a decade—including as Criminal Chief of that office—he has been involved in the prosecution of gang members, terrorists, and corrupt public officials. Every MS-13 member in Long Island should know, Richard Donoghue will use all the tools at his disposal to get criminals off our streets.”
From 2000 to 2011, Mr. Donoghue served as an Assistant United States Attorney (AUSA) in the United States Attorney’s Office for the Eastern District of New York (USAO EDNY), where he held positions including Chief of the Criminal Division and Chief of the Long Island Criminal Division. As an AUSA, he investigated and prosecuted a wide array of cases, including MS-13 racketeering cases and other violent crime, white collar crime, public integrity offenses, and drug trafficking. While at the USAO EDNY, Mr. Donoghue received the following awards: the New York City Bar Association’s Henry L. Stimson Medal (2007 awarded annually to outstanding AUSAs), and the Eastern District Association’s Charles E. Rose Award (2009, awarded annually to outstanding AUSAs). From 1993 to 2000, Mr. Donoghue served on active duty in the U.S. Army JAG Corps, where he held positions including Military Magistrate Judge, Prosecutor, Defense Counsel and Contract Litigator, and from 1993 through 1995, Mr. Donoghue served as a paratrooper in the 82nd Airborne Division. Mr. Donoghue has received the following military awards: a Meritorious Service Medal (awarded twice – January 2000, January 1999), an Army Commendation Medal (awarded twice – December 1996, January 1996), an Army Achievement Medal (December 1993), and a Humanitarian Service Medal (October 1997). Mr. Donoghue is currently the Chief Litigation Counsel for CA Technologies, where he oversees the company’s litigation matters worldwide. He received his B.A., cum laude, from Hofstra University and his J.D. from St. John’s University School of Law.
Upon the appointment of Mr. Donoghue as Interim United States Attorney, Acting United States Attorney Bridget M. Rohde will resume her role as First Assistant United States Attorney.Long-Time Bonanno Crime Family Member Sentenced to 96 Months’ Imprisonment for ArsonRead the Press Release
Earlier today, in federal court in Brooklyn, long-time Bonanno crime family member Vincent Asaro was sentenced by United States District Judge Allyne R. Ross to 96 months’ imprisonment for violating the Travel Act by using a telephone to order that a vehicle be burned. Asaro previously pled guilty to this crime on June 27, 2017. In sentencing Asaro, Judge Ross found that Asaro was a long-time member of the Bonanno organized crime family who had participated in, among other crimes, the 1969 murder of Paul Katz, the 1978 robbery of the Lufthansa Airlines Terminal at John F. Kennedy Airport, and that as of 2013, Asaro was actively involved in loansharking. Asaro was also ordered to pay $21,276 in restitution for the damages to the car burned in the arson.
Bridget M. Rohde, Acting United States Attorney for the Eastern District of New York, and William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and James P. O’Neill, Commissioner, New York City Police Department, announced the sentence.
“Today’s sentence holds Asaro accountable not only for using his power as a member of organized crime to address a perceived slight by another motorist, but for a lifetime of violent criminal activity,” stated Acting United States Attorney Rohde. “This Office, together with our partners at the FBI, will continue to investigate and prosecute members and associates of organized crime and eliminate the danger they pose to members of our community.”
“An unfortunate chance encounter led an unsuspecting motorist to become embroiled in a high-speed chase at the hands of an enraged Asaro,” stated FBI Assistant Director-in-Charge Sweeney. “Unsatisfied with the outcome of his pursuit, Asaro dug his heels in. He contacted an associate with access to a local law enforcement database, identified the license plate information of the car, and put in motion a plan to set fire to the vehicle in front of the victim’s residence. Once the arson had occurred, at the hands of those directed to do so, Asaro insisted on checking in person to ensure his orders had been followed. The anger that propelled Asaro to action is reminiscent of so many scripted Hollywood dramas, but unlike the fame and fortune of the big screen, Asaro’s story ends on a different note. Today’s sentence proves that living life in the fast lane is sure to be short lived.”
As described in court filings and statements made during court appearances, Asaro was inducted into the Bonanno family more than 40 years ago and has previously held the position of captain and member of the family’s ruling panel. In early April 2012, Asaro was traveling in a car in Howard Beach when he became enraged at another motorist who had switched lanes in front of Asaro at a traffic light. Asaro chased the other car at a high rate of speed. The victim drove into Ozone Park while trying to call the police and describe where he was. When the victim arrived in an area he knew to contain a red light camera, he intentionally circled the block trying to set off the cameras in an attempt to alert the police to his location.
Shortly thereafter, Asaro contacted an associate of the Gambino organized crime family of La Cosa Nostra who Asaro knew to have access to local law enforcement databases. The next day, a local law enforcement database accessed the license plate information for the plate of the car the victim was driving, which revealed the victim’s address. Asaro then directed an associate of the Bonanno organized crime family (“Associate-1”) to set fire to the victim’s car. Associate-1 then recruited Matthew Rullan and John J. Gotti, Asaro’s co-defendants, to help him carry out the arson.
Associate-1, Gotti and Rullan drove in Gotti’s Jaguar sedan to a service station in the pre-dawn hours of April 4, 2012 where they filled a container with gasoline and proceeded to the residence of the victim. Associate-1 doused the vehicle with gasoline, and Rullan ignited it. An NYPD police officer in an unmarked car observed the crime in progress and pursued the Jaguar on a high-speed chase through the streets of Queens until he terminated the pursuit for safety reasons due to Gotti’s reckless driving. The following day, Associate-1 told Asaro about the arson, and Asaro drove to the auto body shop where the burned car had been towed to confirm that his order had been carried out.
In imposing the sentence, Judge Ross concluded that Asaro’s history and characteristics, specifically his longtime association with organized crime and his history of participating in crimes of violence, including the 1969 murder of Paul Katz and the 1978 armed robbery of over $6 million dollars in United States currency and jewelry from the Lufthansa Airlines Terminal, weighed in favor of a significant custodial sentence. Additionally, Judge Ross found that the nature and circumstances of the charged crime indicated that the defendant remains a danger to the community.
The government’s case is being handled by the Office’s Organized Crime & Gangs Section. Assistant United States Attorneys Nicole M. Argentieri, Lindsay K. Gerdes, and Keith D. Edelman are in charge of the prosecution.
The Defendant:
VINCENT ASARO
Age: 82
Queens, NY
E.D.N.Y. Docket No. 17-CR-127 (ARR)
New York Attorney Convicted of Securities Fraud and Wire Fraud ConspiraciesRead the Press Release
Evan Greebel, a former partner at the New York office of Katten Muchin Rosenman LLP who served as outside counsel to Retrophin Inc., a biopharmaceutical company, was convicted today by a federal jury in Brooklyn of two counts of a superseding indictment charging him with conspiracy to commit securities fraud and conspiracy to commit wire fraud. The verdict followed an 11-week trial before United States District Judge Kiyo A. Matsumoto.
Bridget M. Rohde, Acting United States Attorney for the Eastern District of New York, and William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the verdict.
“By helping Retrophin CEO Martin Shkreli steal millions of dollars and cover up Shkreli’s fraud, the defendant Evan Greebel betrayed the trust placed in him by Retrophin’s board of directors to represent the company’s best interests,” stated Acting United States Attorney Rohde. “Today’s verdict sends a powerful message that this Office, together with our law enforcement partners, will hold lawyers accountable when they use their legal expertise to facilitate the commission of crimes.” Ms. Rohde thanked the Securities and Exchange Commission, New York Regional Office (SEC), and the Financial Industry Regulatory Authority, Inc., Criminal Prosecution Assistance Group (FINRA CPAG), for their significant cooperation and assistance in this case.
“Greebel’s conviction highlights the deliberate actions he took in conspiring with hedge fund manager Martin Shkreli to defraud investors,” stated FBI Assistant Director-in-Charge Sweeney. “While it’s become increasingly more evident that Greebel exploited his knowledge of the law in his efforts to break the law, today we finally see justice served in a case that’s spent no shortage of its time in the spotlight. Investment fraud remains a priority for the FBI’s New York Office.”
The evidence at trial established that between 2011 and 2014, Greebel conspired with Shkreli and others in a scheme to misappropriate Retrophin’s assets in order to pay off defrauded investors in Shkreli’s hedge funds, MSMB Capital Management LP (MSMB Capital) and MSMB Healthcare Management LP (MSMB Healthcare). As part of this scheme, Greebel negotiated and prepared so-called “settlement” agreements with certain defrauded MSMB Capital and MSMB Healthcare investors, which caused Retrophin to reimburse those investors more than $2 million in cash and stock for their lost investments in Shkreli’s hedge funds even though Retrophin was not responsible for those losses. Greebel also arranged for certain other defrauded investors to enter into sham consulting agreements with Retrophin as a means to settle liabilities owed by Shkreli and the hedge funds.
In addition, between 2012 and 2014, Greebel and Shkreli engaged in a scheme to defraud investors and potential investors in Retrophin by attempting to illegally control the price and trading volume of Retrophin’s stock. Greebel and Shkreli executed this scheme by, among other things, concealing Shkreli’s beneficial ownership and control of the majority of Retrophin’s free-trading shares. Greebel and Shkreli recruited associates of Shkreli to be nominee shareholders for the majority of Retrophin’s free-trading shares, and they also filed a false document with government regulators to hide the fact that Shkreli controlled those shares. Greebel and Shkreli not only prevented nominee employees from selling these shares, but also directed that some of the shares be used to settle liabilities owed by the MSMB hedge funds and Shkreli.
When he is sentenced, Greebel faces a maximum of 20 years in prison on the top count of conviction.
In August 2017, co-defendant Shkreli was convicted of securities fraud and securities fraud conspiracy by a federal jury following a six-week trial before Judge Matsumoto. Shkreli is awaiting sentencing.
The government’s case is being handled by the Office’s Business and Securities Fraud Section. Assistant United States Attorneys Alixandra Smith, David Pitluck and David K. Kessler are in charge of the prosecution.
The Defendants:
EVAN GREEBEL
Age: 44
Scarsdale, New York
MARTIN SHKRELI
Age: 34
Manhattan, New York
E.D.N.Y. Docket No. 15-CR-637 (KAM)High-Ranking Soccer Officials Convicted in Multi-Million Dollar Bribery SchemesRead the Press Release
On Friday, former high-ranking soccer officials Juan Ángel Napout and José Maria Marin were convicted of racketeering conspiracy and related crimes by a federal jury in Brooklyn. The crimes of conviction related to the defendants’ participation in schemes to accept millions of dollars in bribes in exchange for the media and marketing rights to various soccer tournaments. In addition to racketeering conspiracy, Napout was also convicted of two counts of wire fraud conspiracy, and Marin was convicted of three counts of wire fraud conspiracy and two counts of money laundering conspiracy. Today, the jury found the defendant Manuel Burga, former president of the Peruvian soccer federation, not guilty of racketeering conspiracy, the one count on which he was extradited from Peru.[1] After the jury rendered its verdict, which followed a six-week trial before United States District Judge Pamela K. Chen, Judge Chen remanded Napout and Marin into custody.
At the time of his arrest in December 2015, Napout was the president of the South American soccer confederation, known as CONMEBOL, a member of the FIFA Executive Committee, and a FIFA Vice President. He had also previously served as president of the Paraguayan soccer federation. At the time of his arrest in May 2015, Marin was the former head of the Brazilian soccer federation, known as the CBF, and a member of various FIFA standing committees. As proved at trial, the defendants and their co-conspirators accepted or agreed to accept tens of millions of dollars in bribe payments over the course of the conspiracy.
The guilty verdicts were announced by Bridget M. Rohde, Acting United States Attorney for the Eastern District of New York, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and R. Damon Rowe, Special-Agent-in-Charge, Internal Revenue Service Criminal Investigation, Los Angeles Field Office (IRS).
“As the jury found, defendants Napout and Marin lined their own pockets with millions of dollars in bribes at the expense of the soccer organizations they represented and the people those organizations served,” said Acting United States Attorney Rohde. “Now these defendants have been brought to justice, like the others who have been convicted for corrupting a sport beloved across the world, and will face punishment for their criminal conduct. The guilty verdicts and the evidence at trial highlight the extent of the corruption and the continuing need for reform.” Ms. Rohde expressed her grateful appreciation to governments around the world, particularly the governments of Switzerland, Brazil, Peru, and Paraguay for their significant assistance in this case. Ms. Rohde also thanked the Office of International Affairs and the Organized Crime and Gang Section of the U.S. Department of Justice’s Criminal Division in Washington, D.C., for their assistance in this prosecution.
“So much about the game of soccer is ingrained in many cultures around the world, they watch and play it with an almost religious fervor,” stated FBI Assistant Director-in-Charge Sweeney. “The many subjects we have charged in this expansive and complex investigation used the reverence of fans to make millions of dollars illegally while they thought no one was watching. Their mistakes were using banks and companies in the United States to hide their misdeeds, but they got caught. The FBI has worked side-by-side with our national and international partners, traveling all over the world to build this case that wouldn’t have been possible without the great coordination of all the agencies investigating. We will continue searching out everyone involved in these backroom handshakes, and lucrative bribes that were once just part of the game.”
“As the guilty verdicts reflect, Juan Angel Napout and Jose Maria Marin undermined the soccer-related contracting process by entering into corrupt arrangements with executives of sports marketing companies who were more than willing to pay self-serving bribes,” said Special Agent-in-Charge Rowe of IRS Criminal Investigation. “IRS Criminal Investigation, along with our law enforcement partners at the U.S. Attorney’s Office and the FBI, will continue to aggressively investigate those individual and corporate entities that use shell companies and financial accounts in bank secrecy jurisdictions, and in the process utilize the U.S. financial system to facilitate crooked practices within the world's favorite sport.”
The Enterprise the Evidence at Trial [2]
As proved at trial, FIFA and its six continental confederations, together with affiliated regional federations, national member associations, and sports marketing companies, constitute an enterprise of legal entities associated in fact for purposes of the federal racketeering laws. The principal – and entirely legitimate – purpose of the enterprise is to regulate and promote the sport of soccer worldwide. The enterprise financed its efforts in significant part by commercializing the media and marketing rights associated with various soccer events and tournaments, often through the sale of multi-year contracts covering multiple editions of the tournaments.
The evidence at trial, including witness testimony, contemporaneously kept ledgers, bank records, emails and text messages, and consensual recordings, established that the defendants and their co-conspirators had engaged in a conspiracy to corrupt the enterprise through racketeering activity. Specifically, the defendants and their co-conspirators corrupted the FIFA enterprise through the offer and receipt of tens of millions of dollars in bribes and kickbacks paid by sports marketing companies to soccer officials. In particular, the evidence at trial established that Napout and Marin accepted, or agreed to accept, millions of dollars in bribes in exchange for the media and marketing rights to: (a) multiple editions of the CONMEBOL-sponsored Copa América soccer tournament played periodically by South American national teams, including the Copa América Centenario, a special edition of the tournament played in the United States in 2016; and (b) multiple editions of the CONMEBOL-sponsored Copa Libertadores soccer tournament played annually by South American club teams.
The Copa América bribes were paid, variously, by principals of the sports marketing companies Traffic, Torneos y Competencias (“Torneos”), and Full Play. The Copa Libertadores bribes were paid by Torneos and related entities, using Full Play as an intermediary. In addition, the government proved that Marin agreed to receive millions of dollars worth of bribes in exchange for the media and marketing rights to the Copa do Brasil, a soccer tournament sponsored by the CBF for Brazilian soccer clubs. Marin received and agreed to receive these bribes from Traffic and a Brazilian sports marketing company named Klefer.
Defendants who have pleaded guilty and corporate entities that have entered agreements with the government have agreed to forfeit more than $200,000,000 in this and related cases, and the government has collected more than $60,000,000 of that figure to date. The government has also restrained assets around the world in connection with this and related cases, with the assistance of various foreign governments. As previously announced, all of the forfeited funds are being held in reserve, in order to ensure their availability to satisfy any orders of restitution entered at sentencing for the benefit of individuals or entities that qualify as victims under federal law.When sentenced by Judge Chen, the defendants convicted at trial face a maximum of 20 years in prison on each count of conviction. Each of the defendants also faces liability for millions of dollars in forfeiture and/or restitution, in amounts to be determined at the time of sentencing.
The government’s investigation is ongoing.
The government’s case is being handled by the Office’s FIFA Task Force. Assistant United States Attorneys Samuel P. Nitze, M. Kristin Mace, and Keith D. Edelman are in charge of the trial prosecution, with assistance from Assistant U.S. Attorneys Paul Tuchmann, Kaitlin T. Farrell, and Brian D. Morris.
The Defendants:
JUAN ÁNGEL NAPOUT
Age: 59
Citizenship: ParaguayJOSÉ MARIA MARIN
Age: 85
Citizenship: BrazilE.D.N.Y. Docket No. 15-CR-252 (S-2) (PKC)
[1] Burga was charged in a superseding indictment unsealed on December 3, 2015 with one count of racketeering conspiracy, two counts of wire fraud conspiracy, and two counts of money laundering conspiracy – the same offenses charged against defendant Napout. Peru extradited Burga on the racketeering conspiracy count. Accordingly, the second superseding indictment that served as the trial indictment charged Burga in that count alone.
[2] Facts described here are derived from the evidence put before the jury at trial, as well as publicly filed documents and statements made in open court in this and related cases.
Keppel Offshore & Marine Ltd. and U.S.-Based Subsidiary Agree to Pay $422 Million in Global Penalties to Resolve Foreign Bribery CaseRead the Press Release
Keppel Offshore & Marine Ltd. (KOM), a Singapore-based company that operates shipyards and repairs and upgrades shipping vessels, and its wholly owned U.S. subsidiary, Keppel Offshore & Marine U.S.A. Inc. (KOM USA), have agreed to pay a combined total penalty of more than $422 million to resolve charges with authorities in the United States, Brazil and Singapore arising out of a decade-long scheme to pay millions of dollars in bribes to officials in Brazil. KOM USA pleaded guilty today in the Eastern District of New York in connection with the resolution. In addition, a guilty plea by a former senior member of KOM’s legal department was unsealed.
Bridget M. Rohde, Acting United States Attorney for the Eastern District of New York, John P. Cronan, Acting Assistant Attorney General of the Department of Justice’s Criminal Division, and Stephen E. Richardson, Assistant Director, Federal Bureau of Investigation, Criminal Investigative Division (FBI), made the announcement.
“The resolutions with KOM and its U.S. subsidiary are the result of a multinational effort to investigate and prosecute a corruption scheme that resulted in the payment by the defendant companies of over $50 million in bribes to Brazilian officials and in profits for the defendant companies of over $350 million from business corruptly obtained in Brazil,” said Acting U.S. Attorney Rohde. “In an attempt to conceal their crimes, the defendants used the global financial system – including the United States banking system – to disguise the source and disbursement of the bribe payments by passing funds through a series of shell companies. The United States, working with its law enforcement partners abroad, will continue to hold responsible those corporations and individuals who seek to enrich themselves through the corruption of government officials and legitimate governmental functions.”
“Today’s resolution once again underscores the importance of the Department of Justice’s collaboration with foreign authorities to hold corrupt companies and individuals accountable for their crimes, while ensuring the fair and appropriate allocation of fines and penalties,” said Acting Assistant Attorney General Cronan. “This case also represents the first coordinated FCPA resolution with Singapore and the most recent of several coordinated resolutions with Brazil. The Criminal Division is committed to working with our international partners to ensure that honest, law abiding companies are able to compete on a level playing field across the globe.”
“The resolution to this investigation shows to those around the world that the FBI and our law enforcement partners are dedicated to work together to bring justice to companies who play outside the rule of law,” said FBI Assistant Director Richardson. “The FBI won’t stand by while individuals operate their business illegally using bribes.”
The Bribery Scheme
According to admissions and court documents, beginning by at least 2001 and continuing until at least 2014, KOM conspired to violate the Foreign Corrupt Practices Act (“FCPA”) by paying approximately $55 million in bribes to officials at the Brazilian state-owned oil company Petrobras, and to the then-governing political party in Brazil, in order to win 13 contracts with Petrobras and another Brazilian entity. KOM effectuated and concealed the bribe payments by paying outsized commissions to an intermediary, under the guise of legitimate consulting agreements, who then made payments for the benefit of the Brazilian officials and the Brazilian political party. KOM USA participated in this conspiracy from approximately 2007 to 2014.
The Corporate Resolutions
KOM entered into a deferred prosecution agreement with the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the U.S. District Court for the Eastern District of New York (the “United States”) in connection with a criminal Information filed today in the Eastern District of New York charging the company with conspiracy to violate the anti-bribery provisions of the FCPA. In addition, KOM USA pleaded guilty and was sentenced by the Honorable Kiyo A. Matsumoto on a one-count criminal Information charging the company with conspiracy to violate the anti-bribery provisions of the FCPA. Pursuant to its agreement with the United States, KOM will pay a total criminal fine of $422,216,980, with a criminal penalty due to the United States of $105,554,245, including a $4,725,000 criminal fine paid by KOM USA. As part of the deferred prosecution agreement, KOM also committed to implement rigorous internal controls and to cooperate fully with the United States’ ongoing investigation.
In related proceedings, the company settled with the Ministério Público Federal (MPF) in Brazil and the Attorney General’s Chambers (AGC) in Singapore. The United States will credit the amount the company pays to Brazil and Singapore under their respective agreements, with Brazil receiving $211,108,490, equal to 50 percent of the total criminal penalty, and Singapore receiving $105,554,245, equal to 25 percent of the total criminal penalty.
In reaching the resolutions with the United States, KOM and KOM USA received credit for their substantial cooperation with the United States’ investigation and for taking extensive remedial measures. For example, KOM has terminated and otherwise disciplined employees involved in the criminal conduct, and it has implemented an enhanced system of compliance and internal controls to address and mitigate corruption risks. Accordingly, the criminal penalty reflects a 25 percent reduction off the bottom of the applicable U.S. Sentencing Guidelines fine range.
The United States also unsealed charges today against a former senior member of KOM’s legal department, who pleaded guilty to one count of conspiracy to violate the FCPA on August 29, 2017 in the Eastern District of New York. He is awaiting sentencing.
The case is being prosecuted by Assistant U.S. Attorneys Alixandra Smith and Patrick Hein of the Business and Securities Fraud Section of the U.S. Attorney’s Office for the Eastern District of New York, and Trial Attorneys Derek J. Ettinger and David M. Fuhr and Assistant Chief Christopher J. Cestaro of the Criminal Division’s Fraud Section. The FBI’s International Corruption squad in Houston investigated this case.
The Criminal Division’s Office of International Affairs also provided substantial assistance. The SEC and the Ministerio Publico Federal in Brazil the Departamento de Polícia Federal and the Office of the Attorney General in Switzerland provided significant cooperation.
Staten Island Man Charged with Conspiring to Distribute and Possess with Intent to Distribute Heroin and FentanylRead the Press Release
A criminal complaint was unsealed earlier today, in federal court in Brooklyn, charging Michael Hitsous with conspiracy to distribute and possession with intent to distribute heroin and fentanyl in Staten Island, New York. Hitsous was arrested yesterday and is scheduled to make his initial appearance this afternoon before United States Magistrate Judge Steven M. Gold.
Bridget M. Rohde, Acting United States Attorney for the Eastern District of New York, Michael E. McMahon, District Attorney, Richmond County District Attorney’s Office (RCDA), and James P. O’Neill, Commissioner, New York City Police Department (NYPD), announced the charges.
As alleged in publicly filed documents, between February 2017 and December 2017, Hitsous sold heroin and fentanyl from his Staten Island home, which resulted in near fatal overdoses of two young women. Notably, in or about September 2017, Hitsous sold narcotics to a 25-year-old female who overdosed at the defendant’s residence after ingesting drugs that he provided. While the victim was unconscious, a friend of the victim called emergency medical personnel who arrived in time to resuscitate her. Despite providing the narcotics that nearly killed the victim, Hitsous continued to regularly sell narcotics from his home knowing the harm they cause.
“As alleged, the defendant Michael Hitsous profited by selling dangerous drugs, including fentanyl and heroin, without regard for the potentially deadly consequences to the users of those drugs,” stated Acting United States Attorney Rohde. “Together with our law enforcement partners, this Office will work tirelessly to identify and prosecute to the fullest extent of the law those who contribute to the opioid crisis, and, through these efforts, work to save lives by reducing the availability of opioids and to prevent new addictions in our District.”
“The illegal sale of heroin and fentanyl has caused unimaginable pain to families across Staten Island, as those suffering from addiction illness continue to overdose at alarming rates due to these deadly drugs,” stated District Attorney McMahon. “By investigating each overdose and tracing the dangerous narcotics back to the source, law enforcement has been able to hold drug dealers accountable for the lives they have destroyed and we are proud that our Overdose Response Initiative is getting these results. We will continue working together with our partners in the NYPD and the Eastern District to investigate and prosecute any individual who peddles this poison in our community so that we can save lives and finally put an end to the drug epidemic.”
According to the Centers for Disease Control and Prevention (CDC) and the Department of Justice, drug overdoses have become the leading cause of death for Americans under the age of 50. The increase in overdose deaths has been driven in large part by fentanyl – a drug that has been described as 50 to 100 times more potent than morphine. In New York, from 2014 to 2015, fentanyl overdose deaths rose 135 percent, while heroin overdose deaths rose 28 percent. According to the CDC’s latest report analyzing overdose deaths nationally, in 2016 synthetic opioid deaths – which includes fentanyl – more than doubled from 9,580 in 2015 to 19,413 in 2016.
The arrest was the result of a long-term investigation by the NYPD’s Drug Overdose Task Force whose officers coordinated numerous controlled narcotics purchases from Hitsous.
The charges in the complaint are merely allegations, and the defendant is presumed innocent unless and until proven guilty.
The government’s case is being handled by the Office’s General Crimes Section. Assistant United States Attorney David Lizmi is in charge of the prosecution.
The Defendant:
MICHAEL HITSOUS
Age: 26
Residence: Staten Island, New YorkE.D.N.Y. Docket No. 17-MJ-1063
Medical Doctor Indicted for Causing Patient’s Overdose Death in Staten IslandRead the Press Release
A second superseding indictment was unsealed today in federal court in Brooklyn charging medical doctor Martin Tesher with unlawfully prescribing oxycodone and fentanyl to a patient, Nicholas Benedetto, without legitimate medical purpose, which resulted in Benedetto’s overdose death on March 5, 2016 in Staten Island. Dr. Tesher was previously indicted for unlawfully prescribing thousands of oxycodone pills to patients without a legitimate medical purpose. Dr. Tesher’s arraignment on the second superseding indictment is scheduled for this afternoon before United States Magistrate Judge Steven M. Gold.
Bridget M. Rohde, Acting United States Attorney for the Eastern District of New York, and James J. Hunt, Special Agent-in-Charge, Drug Enforcement Administration, New York Division (DEA), announced the superseding indictment.
“As alleged, instead of providing his opioid addicted patients with medically appropriate and lawful care, Dr. Tesher quite literally fed their addiction, and, in this case, his actions resulted in the death of a patient,” stated Acting United States Attorney Rohde. “This Office and our law enforcement partners are committed to holding accountable those medical professionals who foster the opioid crisis for personal gain.”
“This investigation led law enforcement to a drug dealer using his doctor’s office as a front for opioid trafficking,” stated DEA Special Agent-in-Charge Hunt. “Dr. Tesher enabled drug addiction by prescribing medication beyond the scope of legitimate medical practice and need. Allegedly, his actions resulted in death. Law enforcement has and will continue to pool resources in order to identify drug sources who feed addiction in our communities.”
As alleged in court filings, the defendant operates a family medical practice in Manhattan. He was authorized by the DEA to treat up to 30 drug-addicted patients by prescribing them Schedule III, IV or V narcotics to ease their addiction. Dr. Tesher has, in fact, treated countless patients who identified as or whom he determined to be drug addicts. Instead of diverting those addicted patients to drug rehabilitation or prescribing them with Schedule III, IV or V drugs as authorized by law, Dr. Tesher prescribed his addicted patients with the very drugs they were addicted to, Schedule II opioids, such as oxycodone and fentanyl. While under Dr. Tesher’s care, many of his patients tested positive for drugs such as cocaine, heroin, morphine or methadone. Even upon learning that information, Dr. Tesher continued to prescribe those patients with Schedule II narcotics that could have been lethal on their own or in combination with the other drugs Dr. Tesher knew his patients were ingesting.
According to court documents, Benedetto was one of Dr. Tesher’s patients. While under Tesher’s care, Benedetto drug tested positive for cocaine, heroin, morphine and methadone, in addition to the oxycodone and fentanyl Dr. Tesher was prescribing to him. Dr. Tesher allegedly continued to prescribe Schedule II narcotics to Benedetto despite several indicators that his patient was addictively abusing those narcotics. Benedetto died of a drug overdose on March 5, 2016, two days after he had been prescribed both oxycodone and fentanyl patches by Dr. Tesher.
If convicted of the top charge, Dr. Tesher will face a mandatory minimum of 20 years’ imprisonment and a maximum of life in prison. The charges in the superseding indictment are merely allegations, and the defendant is presumed innocent unless and until proven guilty.
The government’s investigation was led by the DEA’s Long Island Tactical Diversion Squad, which is comprised of agents and officers of the DEA, Internal Revenue Service, Nassau County Police Department (NCPD), Suffolk County Police Department, Port Washington Police Department, and Rockville Centre Police Department. The DEA Tactical Diversion Squad also worked in conjunction with officers and agents of the New York City Police Department, Criminal Enterprise Investigations, the Department of Health & Human Services, Office of Inspector General, New York City Department of Investigation, and NCPD’s Asset Forfeiture and Intelligence Bureau.
This case is the latest in a series of federal prosecutions by the United States Attorney’s Office for the Eastern District of New York as part of the Prescription Drug Initiative. In January 2012, this Office and the DEA, in conjunction with the five District Attorneys in this district, the Nassau and Suffolk County Police Departments, the New York City Police Department, and New York State Police, along with other key federal, state, and local government partners, launched the Initiative to mount a comprehensive response to what the United States Department of Health and Human Services Centers for Disease Control and Prevention called an epidemic increase in the abuse of so-called opioid analgesics. To date, the Initiative has brought over 160 federal and local criminal prosecutions, including the prosecution of 19 health care professionals, taken civil enforcement actions against a hospital, a pharmacy, and pharmacy chain, removed prescription authority from numerous rogue doctors, and expanded information-sharing among enforcement agencies to better target and pursue drug traffickers. The Initiative also is involved in an extensive community outreach program to address the abuse of pharmaceuticals
The government’s case is being handled by the Office’s International Narcotics and Money Laundering Section. Assistant United States Attorney Jennifer M. Sasso is in charge of the prosecution.
The Defendant:
MARTIN TESHER
Age: 81
Manhattan, New YorkE.D.N.Y. Docket No. 17-CR-523 (SJ)
Italian National Pleads Guilty to Illegally Exporting and Attempting to Export Night Vision Equipment and Assault Rifle ComponentsRead the Press Release
Earlier today, in federal court in Brooklyn, Giovanni Zannoni, an Italian national and member of the Italian armed services, pleaded guilty to illegally exporting controlled military technology from the United States to Italy. As part of his plea, Zannoni agreed to forfeit $436,673.73, in addition to the dozens of gun parts and night vision and thermal imaging devices recovered by the government in connection with this prosecution. Today’s plea took place before United States District Judge Pamela K. Chen.
Bridget M. Rohde, Acting United States Attorney for the Eastern District of New York, Leigh-Alistair Barzey, Special Agent-in-Charge, Department of Defense, Defense Criminal Investigative Service, Northeast Field Office (DCIS), and Angel M. Melendez, Special Agent-in-Charge, U.S. Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI), New York, announced the guilty plea.
“The defendant Giovanni Zannoni skirted laws intended to safeguard our national security by keeping specialized technologies out of the wrong hands,” stated Acting United States Attorney Rohde. “We will investigate and prosecute those who illegally export our defense technology, upon which our troops rely, to the fullest extent of the law.” Ms. Rohde extended her grateful appreciation to U.S. Department of Defense, Defense Criminal Investigative Service, and U.S. Immigration and Customs Enforcement, Homeland Security Investigations, for their assistance in this case.
“The defendant’s guilty plea is the result of a successful joint investigation conducted by the U.S. Attorney’s Office, HSI and the Defense Criminal Investigative Service (DCIS),” stated DCIS Special Agent-in-Charge Barzey. “The illegal exportation of controlled military technology poses a significant threat to our national security and DCIS is committed to working with its law enforcement partners to ensure that sensitive defense technology is properly protected.”
“Over a period of four years, Zannoni illegally moved military equipment half way around the globe for a profit, with no concern of the buying agent,” said HSI Special Agent-in Charge Melendez. “His actions supported the military potential and weapons proliferation of other nations, creating potential national security risks. Protecting our homeland encompasses many missions, including safeguarding our nation's technologies, and Zannoni will now face the consequences on this actions.”
According to court filings and admissions made in court at the time he entered the guilty plea, between June 2013 and May 2017, Zannoni illegally exported and attempted to export night vision goggles and assault rifle components designated as defense articles on the United States Munitions List. The export of sensitive night vision equipment and assault rifle components requires a license from the United States Department of State. The Department of State has placed restrictions on the export of items that it has determined could make a significant contribution to the military potential and weapons proliferation of other nations and that could be detrimental to the foreign policy and national security of the United States. On May 14, 2017, the defendant was arrested after entering the United States at Miami International Airport.
When sentenced, Zannoni faces a maximum sentence of 20 years in prison and a $1 million fine.
The government’s case is being handled by the Office’s General Crimes Section. Assistant United States Attorney Nomi D. Berenson is in charge of the prosecution, with the assistance from Trial Attorney Matthew Walczewski of the National Security Division’s Counterintelligence and Export Control Section.
The Defendant:
GIOVANNI ZANNONI
Age: 35
Residence: Gavorrano, ItalyE.D.N.Y. Docket No. 17-CR-565 (PKC)
Brooklyn Man Sentenced to 15 Years’ Imprisonment for Conspiring to Provide Material Support to TerroristsRead the Press Release
Earlier today, at the federal courthouse in Brooklyn, Akhror Saidakhmetov, a citizen of Kazakhstan and resident of Brooklyn, New York, was sentenced by United States District Judge William F. Kuntz, II, to 15 years’ imprisonment for conspiring to provide material support to a designated foreign terrorist organization, the Islamic State in Iraq and al-Sham (ISIS).
Bridget M. Rohde, Acting United States Attorney for the Eastern District of New York, Dana J. Boente, Assistant Attorney General for National Security, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and James P. O’Neill, Commissioner, New York City Police Department (NYPD), announced the sentence.
“Today, defendant Akhor Saidakhmetov was held accountable for attempting to travel to Syria to wage violent jihad on behalf of ISIS and his intention to kill law enforcement officers in the United States if unable to reach Syria,” stated Acting United States Attorney Rohde. “We will continue to work closely with the FBI’s Joint Terrorism Task Force in New York to disrupt those trying to support foreign terrorist organizations here or abroad and to prosecute them to the fullest extent of the law.”
“Saidakhmetov's plan was to become a battlefield soldier for ISIS, but should that not come to pass, he was prepared to bring the fight to our streets by attacking police officers and FBI agents in the U.S.,” stated FBI Assistant Director-in-Charge Sweeney. “This case highlights the challenges law enforcement faces in confronting the modern-day terrorist threat. And while this is but one of the many successful investigations carried out by the FBI and our partners on the JTTF, there’s no doubt we have more work to do.”
“The defendant in this case pledged allegiance to ISIS, attempted to travel to Syria, and spoke of purchasing a gun to kill police officers and FBI agents,” stated NYPD Commissioner O’Neill. “He’ll be removed from the United States upon completion of the 15-year sentence announced today. I want to thank the members of law enforcement and the court system for their work on this case. It’s representative of the shared responsibility we have to keep each other, our City, and our nation safe.”
According to previous court filings, beginning in August 2014, Saidakhmetov repeatedly expressed his radical pro-ISIS views and his desire to travel to Syria to fight on behalf of ISIS. In September 2014, while watching videos of ISIS training camps in Syria, Saidakhmetov stated that he was going to travel to Syria to become a “Mujahid on the path of Allah.” During the next several months, Saidakhmetov discussed with a co-conspirator their plans to travel to Syria to fight on behalf of ISIS and reached out to purported ISIS representatives for information on traveling to join ISIS.
Saidakhmetov also stated that if he were unable to travel to Syria to join ISIS, he would attack law enforcement officers in the United States. Specifically, he stated that he would purchase a handgun or machine gun and shoot police officers and FBI agents.
On February 19, 2015, Saidakhmetov purchased a ticket to travel from John F. Kennedy International Airport (JFK Airport) in Queens, New York, to Istanbul, Turkey, departing on February 25, 2015. While at JFK Airport awaiting his flight, Saidakhmetov received approximately $1,600 from a coconspirator to cover his expenses, including the purchase of a firearm after his arrival in Syria to join ISIS. Saidakhmetov was arrested while attempting to board the flight to Turkey.
Following completion of his sentence, Saidakhmetov will be removed from the United States.
The government’s case is being handled by the Office’s National Security & Cybercrime Section. Assistant U.S. Attorneys Alexander Solomon, Douglas M. Pravda, Peter W. Baldwin and David K. Kessler of the Eastern District of New York are in charge of the prosecution, with assistance provided by Trial Attorney Steven Ward of the National Security Division’s Counterterrorism Section.
The Defendant:
AKHROR SAIDAKHMETOV
Age: 22
Residence: Brooklyn, New YorkE.D.N.Y. Docket No. 15 CR 95 (WFK)
Senior Executives of Medical Drug Repackager Sentenced for Defrauding Healthcare ProvidersRead the Press Release
Earlier today, in federal court in Brooklyn, Gerald Tighe and Stephen Kalinoski, were sentenced by United States District Court Judge I. Leo Glasser to six months’ home confinement, four years’ probation, and 300 hours of community service, for wire fraud conspiracy in connection with their operation of Med Prep Consulting, Inc. (Med Prep), a now-defunct Tinton Falls, New Jersey-based medical drug repackager and compounding pharmacy, which sold adulterated and contaminated drug products to healthcare providers across the country. As part of their sentences, Kalinoski will forfeit $140,000 of criminal proceeds to the government. The amount of forfeiture owed by Tighe and the amount of restitution both defendants must pay to Yale-New Haven Hospital, which discovered it had received drug products from Med Prep contaminated with mold, will be determined by the Court at a later date. The defendants pleaded guilty to the charges on July 14, 2017.
Bridget M. Rohde, Acting United States Attorney for the Eastern District of New York, and Mark McCormack, Special Agent-in-Charge of the U.S. Food and Drug Administration’s Office of Criminal Investigations, Metropolitan Washington Field Office (FDA OCI), announced the sentence.
According to court filings and facts presented during the sentencing, Med Prep processed numerous drugs, including oncology and dialysis drugs, pain medications, anesthesia drugs and operating room drugs, in purportedly aseptic conditions. In an effort to gain market share, Med Prep repeatedly misrepresented to its customers, who were hospitals and other healthcare providers, that it adhered to, and in some areas exceeded, industry standards and laws applicable to sterile drug preparation. In fact, Med Prep produced drugs in a facility that fell far short of even the most basic industry standards of cleanliness, creating a risk to the health of already ill patients. Tighe, as Med Prep’s president and owner, and Kalinoski, as its director of pharmacy and registered pharmacist-in-charge, lied to healthcare providers about Med Prep’s failures to comply with basic sterility practices. Med Prep halted its production of drug products in the summer of 2013, following an incident in which it had distributed intravenous drugs containing visible mold to Yale-New Haven Hospital.
“Gerald Tighe and Stephen Kalinoski, motivated by a desire to increase profits and cut costs, put patients already suffering from serious illnesses at further risk by distributing drugs that were contaminated or mislabeled,” stated Acting United States Attorney Rohde. “We will continue to investigate and prosecute those drug repackagers and compounding pharmacies that would place corporate greed ahead of patient safety.” Ms. Rohde gratefully acknowledged the assistance and cooperation of the FDA’s Office of Criminal Investigations; the United States Department of Health and Human Services, Office of the Inspector General, Office of Investigations; the United States Office of Personnel Management, Office of the Inspector General; the Department of Justice, Civil Division, Consumer Protection Branch and Commercial Litigation Branch; the FDA’s Office of the Chief Counsel; the Office of the Attorney General of New Jersey; and the New Jersey Board of Pharmacy.
“When people place profits over the public health and distribute unsafe and contaminated drugs, it is the U.S. consumer who is put at risk,” stated FDA OCI Special Agent-in-Charge McCormack. “The FDA will continue to pursue and bring to justice those who endanger the public’s health by distributing adulterated drugs.”
The case is being prosecuted by Assistant United States Attorneys Alixandra E. Smith, Ameet B. Kabrawala and Erin E. Argo, with assistance provided by Assistant United States Attorney Tanya Hill of the Office’s Civil Division.The Defendants:
GERALD TIGHE
Age: 59
West Long Branch, New JerseySTEPHEN KALINOSKI
Age: 53
Middletown, New JerseyE.D.N.Y. Docket No. 15 CR 62 (ILG)
Three Major New York Diagnostic Testing Facility Owners Charged for Their Roles in Alleged Multi-Million Dollar Health Care Fraud SchemeRead the Press Release
A 14-count indictment was unsealed today in federal court in the Eastern District of New York charging three owners of independent diagnostic testing facilities in Brooklyn for their roles in an allegedly fraudulent scheme that involved submitting over $44 million in claims to Medicare and private insurers, which included government-sponsored managed care organizations. Defendant Iskanderova is expected to make an initial appearance this afternoon before U.S. Magistrate Judge Edwin G. Torres of the Southern District of Florida at the federal courthouse in Miami. The case has been assigned to U.S. District Judge Margo K. Brodie.
Bridget M. Rohde, Acting United States Attorney for the Eastern District of New York, John P. Cronan, Acting Assistant Attorney General of the Justice Department’s Criminal Division, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), James D. Robnett, Special Agent-in-Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Scott J. Lampert, Special Agent-in-Charge, U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG), New York Region, announced the indictment.
Tea Kaganovich and Ramazi Mitaishvili were the co-owners of Sophisticated Imaging, East Coast Diagnostics, East Shore Diagnostics, East West Management and RM Global. Syora Iskanderova, also known as “Samira Sanders,” was the owner of Global Testing, Liberty Mobile Imaging, Liberty Mobile Testing, Med Tech Services and Scanwell Diagnostics. The three defendants were each charged with one count of health care fraud, two counts of making false claims to a federal agency, one count of conspiracy to pay health care kickbacks, two counts of paying health care kickbacks and four counts of money laundering. Kaganovich and Mitaishvili were also charged with one count of conspiracy to defraud the United States by obstructing the lawful functions of the IRS. Iskanderova was also charged with two counts of making false statements to federal agents.
According to the indictment, beginning in approximately January 2014 and continuing through at least December 2016, Kaganovich, Mitaishvili and Iskanderova executed a scheme in which they submitted fraudulent claims to Medicare, Medicaid managed care plans and other health care benefit programs for diagnostic testing services. As part of the scheme, the defendants allegedly paid kickbacks for the referral of beneficiaries who submitted themselves to diagnostic testing and other purported medical services. The indictment also alleges that the beneficiaries themselves received kickbacks as part of the scheme. The defendants allegedly submitted and caused to be submitted claims to Medicare, Medicaid managed care plans and other health care benefit programs for services that misrepresented which diagnostic testing company purportedly performed the services. The indictment further alleges that the defendants disguised their illicit payments by moving the proceeds of this illegal activity through shell companies and engaged in financial transactions greater than $10,000 involving the proceeds of unlawful activity. Kaganovich and Mitaishvili are alleged to have falsely reported to the IRS that the illegal payments made to co-conspirators were legitimate business expenses, which caused relevant tax forms to falsely under-report business income and claim deductions. In addition, the indictment alleges that Iskanderova, on two separate occasions, lied to federal agents about her role in the alleged fraud scheme.
As alleged in the indictment, the defendants submitted and caused to be submitted at least $44 million in claims to Medicare, Medicaid managed care plans and other health care benefit programs for diagnostic testing services and were paid at least $19 million on those claims.
The charges in the indictment are merely allegations, and all defendants are presumed innocent unless proven guilty beyond a reasonable doubt in a court of law.
The FBI, IRS-CI and HHS-OIG investigated the case, which was brought as part of the Medicare Fraud Strike Force, under the supervision by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Eastern District of New York. Trial Attorneys Debra Jaroslawicz and Richard Powers of the Fraud Section are prosecuting the case.
The Fraud Section leads the Medicare Fraud Strike Force. Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 3,500 defendants who have collectively billed the Medicare program for more than $12.5 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
The Defendants:
TEA KAGANOVICH
Age: 45
Residence: Brooklyn, New York
RAMAZI MITAISHVILI
Age: 57
Residence: Brooklyn, New York
SYORA ISKANDEROVA (also known as “Samira Sanders”)
Age: 42
Residence: Brooklyn, New York
E.D.N.Y. Docket No. 17-CR-649 (MKB)
Three Major New York Diagnostic Testing Facility Owners Charged for Their Roles in Alleged Multi-Million Dollar Health Care Fraud SchemeRead the Press Release
Three owners of independent diagnostic testing facilities in Brooklyn, New York, were charged in an indictment unsealed today for their roles in an allegedly fraudulent scheme that involved submitting over $44 million in claims to Medicare and private insurers, which included government-sponsored managed care organizations.
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, Acting U.S. Attorney Bridget M. Rohde of the Eastern District of New York, Assistant Director in Charge William F. Sweeney Jr. of the FBI’s New York Field Office, Special Agent in Charge James D. Robnett of the Internal Revenue Service-Criminal Investigation (IRS-CI) New York Office and Special Agent in Charge Scott Lampert of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Office of Investigations made the announcement.
Tea Kaganovich, 45, and Ramazi Mitaishvili, 57, both of Brooklyn, were the co-owners of Sophisticated Imaging, East Coast Diagnostics, East Shore Diagnostics, East West Management and RM Global. Syora Iskanderova aka Samira Sanders, 42, also of Brooklyn, was the owner of Global Testing, Liberty Mobile Imaging, Liberty Mobile Testing, Med Tech Services and Scanwell Diagnostics. The three defendants were each charged with one count of health care fraud, two counts of making false claims to a federal agency, one count of conspiracy to pay health care kickbacks, two counts of paying health care kickbacks and four counts of money laundering. Kaganovich and Mitaishvili were also charged with one count of conspiracy to defraud the United States by obstructing the lawful functions of the IRS. Iskanderova was also charged with two counts of making false statements to federal agents. The indictment was filed on Nov. 22 and unsealed upon the arrest of the defendants this morning. Defendants Kaganovich and Mitaishvili are expected to make an initial appearance this afternoon before U.S. Magistrate Judge Steven M. Gold of the Eastern District of New York at the federal courthouse in Brooklyn. Defendant Iskanderova is expected to make an initial appearance this afternoon before U.S. Magistrate Judge Edwin G. Torres of the Southern District of Florida at the federal courthouse in Miami. The case has been assigned to U.S. District Judge Margo K. Brodie.
According to the indictment, beginning in approximately January 2014 and continuing through at least December 2016, Kaganovich, Mitaishvili and Iskanderova executed a scheme in which they submitted fraudulent claims to Medicare, Medicaid managed care plans and other health care benefit programs for diagnostic testing services. As part of the scheme, the defendants allegedly paid kickbacks for the referral of beneficiaries who submitted themselves to diagnostic testing and other purported medical services. The indictment also alleges that the beneficiaries themselves received kickbacks as part of the scheme. The defendants allegedly submitted and caused to be submitted claims to Medicare, Medicaid managed care plans and other health care benefit programs for services that misrepresented which diagnostic testing company purportedly performed the services. The indictment further alleges that the defendants disguised their illicit payments by moving the proceeds of this illegal activity through shell companies and engaged in financial transactions greater than $10,000 involving the proceeds of unlawful activity. Kaganovich and Mitaishviliare are alleged to have falsely reported to the IRS that the illegal payments made to co-conspirators were legitimate business expenses, which caused relevant tax forms to falsely under-report business income and claim deductions. In addition, the indictment alleges that Iskanderova, on two separate occasions, lied to federal agents about her role in the alleged fraud scheme.
As alleged in the indictment, the defendants submitted and caused to be submitted at least $44 million in claims to Medicare, Medicaid managed care plans and other health care benefit programs for diagnostic testing services and were paid at least $19 million on those claims.
The charges in the indictment are merely allegations, and all defendants are presumed innocent unless proven guilty beyond a reasonable doubt in a court of law.
The FBI, IRS-CI and HHS-OIG investigated the case, which was brought as part of the Medicare Fraud Strike Force, under the supervision by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Eastern District of New York. Trial Attorneys Debra Jaroslawicz and Richard Powers of the Fraud Section are prosecuting the case.
The Fraud Section leads the Medicare Fraud Strike Force. Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 3,500 defendants who have collectively billed the Medicare program for more than $12.5 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.