Eastern District of New York
Press releases recorded for this federal judicial district.
MS-13 Gang Members and Associate Charged with Attempted Murder in Queens ShootingRead the Press Release
Earlier today, Jose Gonzalez, Kevin Paniagua and Francisco Ramos were arrested and charged with assault and attempted murder in aid of racketeering, along with a related firearms charge by members of the Federal Bureau of Investigation (FBI) and the New York City Police Department (NYPD). The defendants’ initial appearance is scheduled for this afternoon before United States Magistrate Judge Cheryl L. Pollak, at the federal courthouse in Brooklyn.
The charges 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 James P. O’Neill, Commissioner, New York City Police Department (NYPD).
According to court filings, Gonzalez, also known as “Flaco,” and Paniagua, also known as “Stomper,” are members of the La Mara Salvatrucha, or MS-13, and Ramos is an MS-13 associate. On October 23, 2016, Ramos drove Gonzalez, Paniagua and another gang member to Jamaica, Queens, in the vicinity of 179th St. and 90th Ave., allegedly to assault an individual targeted because they believed he was a member of one of MS-13’s chief rivals, the 18th Street gang. Gonzalez, Paniagua and another MS-13 member beat the victim viciously and then Paniagua pulled out a gun and shot the victim in the head. Paniagua attempted to shoot the victim a second time, but the gun apparently malfunctioned. The victim is now a paraplegic as a result of the shooting.
“As alleged in the complaint, the defendants were members and an associate of MS-13, an international gang known for its culture of murder,” said Acting United States Attorney Rohde. “They sought to spread fear throughout the community by attempting to kill an individual they suspected to be a rival gang member. We will work with our law enforcement partners to make our communities safer by holding accountable those who are responsible for such acts of violence.” Ms. Rohde thanked the Queens District Attorney’s Office for its assistance in the investigation.
“MS-13 feeds on violence and chaos, and forces people to live in fear. As we arrest and charge more gang members, they’re seeing they can’t operate in the shadows and escape getting caught,” stated FBI Assistant Director-in-Charge Sweeney. “The FBI New York Office is committed to disrupting violent gangs like MS-13 that operate in the New York metropolitan area. We and our law enforcement partners will not stop investigating and rounding up members who hope to rebuild their hierarchy after we make arrests.”
“Violence, of any kind, has no place in New York City,” said Police Commissioner O’Neill. “The defendants find themselves under arrest and facing serious charges for an attempted murder, as alleged in the complaint.”The charges announced today are merely allegations, and the defendants are presumed innocent unless and until proven guilty.
The government’s case is being handled by the Office’s Organized Crime and Gangs Section. Assistant United States Attorneys Nadia E. Moore and Rena Paul are in charge of the prosecution.
The Defendants:
Jose Gonzalez (“Flaco”)
Age: 18
Queens, New YorkKevin Paniagua (“Stomper”)
Age: 18
Queens, New YorkFrancisco Ramos
Age: 23
Queens, New YorkE.D.N.Y. Docket No. 17-MJ-423
Retired NYPD Officer Sentenced to 15 Months Imprisonment for Laundering Funds of A Multi-Million Dollar Prostitution ServiceRead the Press Release
Michael Rizzi, a retired New York City Police Officer, was sentenced today to 15 months’ imprisonment, to be followed by four months’ home confinement and three years of supervised release, for laundering the proceeds of a multi-million dollar prostitution enterprise that he operated. Additionally, United States District Judge Carol B. Amon ordered the forfeiture of 58 websites and $120,247 seized from merchant accounts, as well as the Florida vacation home that the defendant had purchased using proceeds of his prostitution operation. The sentence followed the defendant’s guilty plea to one count of conspiring to launder the proceeds of a prostitution enterprise between June 2012 and May 2016.
The sentence was announced by Bridget M. Rohde, Acting United States Attorney for the Eastern District of New York, and Angel M. Melendez, Special Agent-in-Charge, U.S. Immigration and Customs Enforcement, Homeland Security Investigations (HSI), New York.
As detailed in prior court filings, Rizzi operated a prostitution service under the name BJM/Manhattan Stakes and Entertainment (“BJM”). BJM advertised its services on dozens of websites, including nycescortsnyc.com, and eliteescortsnyc.com, among others. BJM employed “phone bookers” to arrange appointments between prostitutes and BJM’s customers, as well as drivers who collected cash and receipts from BJM’s prostitutes.
The prostitutes working for BJM charged their customers as much as $2,000 per hour. The investigation into the company’s financial records has revealed that several of BJM’s clients spent more than $100,000 on the company’s services, and that some clients paid more than $25,000 for a single night. Over the course of its operations, BJM collected millions of dollars in payments, including more than $2 million in credit card payments alone between October 2012 and March 2016.
BJM is a successor to Pure Platinum Models, another company that offered prostitution services. Following an investigation by HSI, Pure Platinum Models was closed in 2014 and its owner, Marc Schulman, was convicted in the Eastern District of New York of laundering more than $1 million dollars through the company.
“Michael Rizzi left behind a life of law enforcement for a new career in which he flagrantly disregarded the law and exploited others for his own enrichment,” stated Acting United States Attorney Rohde. “This Office is committed to dismantling money laundering organizations, including those which promote and capitalize on illegal prostitution.”
“Leaving behind a life of public service as a member of the NYPD, Michael Rizzi retired into the life of a pimp, running a high end prostitution ring and laundering the proceeds of those crimes,” Special Agent-in-Charge Melendez stated. “The forfeiture of Rizzi’s vacation home, on top of his jail sentence, shows that HSI will continue to aggressively target those who run illegal prostitution rings, as well as proceeds that are generated by this illegal activity.”
The government’s case is being handled by the Office’s Narcotics and Money Laundering Section. Assistant United States Attorneys Jennifer M. Sasso and Erik D. Paulsen are in charge of the prosecution. Assistant United States Attorney Claire Kedeshian is in charge of the forfeiture.
The Defendant:
MICHAEL RIZZI
Age: 45
Staten Island, New York
E.D.N.Y. Docket No. 16-CR-487
Former Chief Financial Officer at Not-For-Profit Organization Pleads Guilty to Wire Fraud and Making A False Tax ReturnRead the Press Release
Earlier today, Paul Cronin pleaded guilty at the federal courthouse in Brooklyn, New York, to a criminal information charging him with one count of wire fraud and one count of making and subscribing a false tax return, in connection with his conduct as Chief Financial Officer (CFO) for United States Council for International Business (USCIB), a not-for-profit organization that advocates for international business and trade. Pursuant to Cronin’s plea agreement with the government, Cronin agreed to pay more than $1.3 million in restitution as part of the sentence imposed by the Court. The plea was entered before United States Magistrate Judge James Orenstein.
As detailed in court filings and facts presented during the plea proceeding, Cronin abused his position as the CFO of USCIB to misappropriate more than $1.3 million in funds to pay for personal expenses. Cronin compounded his criminal conduct by failing to report the embezzled funds as income to the Internal Revenue Service.
The plea was 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 James D. Robnett, Special Agent-in-Charge, Internal Revenue Service-Criminal Investigation, New York Field Office (IRS).
“The defendant betrayed his position of trust with a not-for-profit organization to line his own pockets,” stated Acting United States Attorney Rohde. “Our office will remain vigilant in rooting out corrupt actors who undermine faith in organizations designed to further the public good.”
“Cronin’s misappropriation of more than $1 million, and subsequent tax evasion, didn’t support the efforts of free trade, as advocated by the organization, but instead supported his personal efforts to pay his own expenses,” stated Assistant Director-in-Charge Sweeney. “This type of reprehensible and illegal activity won’t be tolerated, and those who employ these schemes will most certainly be brought to justice.”
“In the United States, income is taxable, regardless of whether the source is legal or illegal. Mr. Cronin’s plea today serves as an important reminder that the role of IRS Criminal Investigation becomes even more important in embezzlement and fraud cases due to the complex financial transactions that can take time to decipher,” said IRS Special Agent-in-Charge Robnett. “The victims are not only the taxpayers, but also the individual entities who suffer the financial harm.”
This case has been assigned to United States District Court Judge Raymond J. Dearie. When sentenced on August 18, 2017, Cronin faces up to 20 years in prison.
The government’s case is being handled by the Office’s Public Integrity Section. Assistant United States Attorneys Alexander A. Solomon and Lan Nguyen are in charge of the prosecution.
The Defendant:
PAUL CRONIN
Age: 55
Daniel Island, South Carolina
E.D.N.Y. Docket No. 17-CR-190 (RJD)
Stock Promoter Convicted in $131 Million Market Manipulation SchemeRead the Press Release
Earlier today, following a two-week trial, a federal jury in Brooklyn, New York, returned a guilty verdict on all counts against Louis Petrossi, a former registered broker, for his role in a $131 million fraudulent promotion and market manipulation scheme involving ForceField Energy Inc. (ForceField), a publicly-traded company listed on the NASDAQ under the ticker symbol “FNRG.” The defendant used a company called the Wealth Research Institute to induce investors to purchase ForceField stock, for which he received a secret ten percent commission. Petrossi and others also engaged in illegal trading to fraudulently increase the value of the stock. The defendant was convicted of conspiracy to commit securities fraud, conspiracy to commit wire fraud, money laundering conspiracy, and securities fraud. Petrossi is the ninth defendant convicted in this case.
When sentenced by United States District Judge Brian M. Cogan, Petrossi faces a maximum sentence of 20 years’ imprisonment.
The verdict was announced by 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).
Ms. Rohde thanked the FBI for its hard work and dedication in leading the investigation and expressed her appreciation to the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority, Inc., Criminal Prosecution Assistance Group (FINRA CPAG) for their cooperation and assistance.
The government’s case is being prosecuted by Assistant United States Attorneys Mark E. Bini and Lauren H. Elbert of the Office’s Business and Securities Fraud Section.
The Defendant:
Louis Petrossi
Age: 76
Reno, Nevada
E.D.N.Y. Docket No. 16-CR-234 (BMC)
Fifa Audit and Compliance Committee Member Pleads Guilty to Corruption ChargesRead the Press Release
Earlier today, Richard K. Lai, a United States citizen, pleaded guilty to a criminal information charging him with two counts of wire fraud conspiracy in connection with his participation in multiple schemes to accept and pay bribes to soccer officials. Lai also pleaded guilty to one count of failing to disclose foreign bank accounts and agreed to pay more than $1.1 million in forfeiture and penalties. The plea was entered before United States District Judge Pamela K. Chen at federal courthouse in Brooklyn, New York.
The guilty plea was 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 Special Agent-in-Charge R. Damon Rowe, Internal Revenue Service Criminal Investigation, Los Angeles Field Office (IRS).
“Today’s plea marks another important step in our ongoing effort to root out corruption in international soccer,” stated Acting United States Attorney Rohde. “The defendant abused the trust placed in him as a soccer official in order to line his own pockets, and now he will be held to account. The defendant’s breach of trust was particularly significant given his position as a member of the FIFA Audit and Compliance committee, which must play an important and independent role if corruption within FIFA is to be eliminated.”
“Years of this systemic culture of corruption and greed have tainted one of the world’s most popular sports,” stated Assistant Director-in-Charge Sweeney. “Kickbacks and bribes became the norm for doing business with FIFA, but not anymore. The plea deal today and all the other cases tied to this investigation prove our work isn’t done, and we will continue to pursue anyone who had their hands in illegal activity.”
“Today’s guilty plea by Guam Football Association president Richard K. Lai, reaffirms the dedication of IRS Criminal Investigation to use our financial investigative expertise to uncover corrupt schemes and illicit payments involving FIFA officials,” stated Special Agent-in-Charge Rowe. “Co-conspirators may try to hide and launder the proceeds of their corrupt self-enrichment, but as mentioned in the legal documents filed today, IRS-CI Special Agents will trace and uncover those funds both through the U.S. financial system and beyond, to offshore jurisdictions in locations such as Asia, the Middle East, and around the globe.”
As alleged in the criminal information to which he pleaded guilty, Lai, a resident of the U.S. territory of Guam, has served as the president of the Guam Football Association (GFA) since 2001. In that capacity, Lai had a vote in FIFA presidential elections. Lai has also served at various times as a member and chair of the Asian Football Confederation (AFC) Finance Committee and a member of the AFC Executive Committee, and is currently a member of the AFC Marketing Committee and the FIFA Audit and Compliance Committee.
As also set forth in the information, Lai pleaded guilty to a scheme in which he received $100,000 in bribes in 2011 from an official of the AFC who was then running for the FIFA presidency, in exchange for Lai’s vote and support in the then-upcoming FIFA presidential election.
As further described in the information, Lai also pleaded guilty to a scheme in which he received over $850,000 in bribes between 2009 and 2014 from a faction of soccer officials in the AFC region. Lai received those bribes in exchange for using his influence as a soccer official to advance the interests of the faction that bribed him, including by helping officials in that faction identify other officials in the AFC to whom they should offer bribes. The goal of this scheme was for the faction to gain control of the AFC and influence FIFA.
The guilty plea announced today is part of an investigation into corruption in international soccer being 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.
Assistant U.S. Attorneys Paul Tuchmann, Nadia Shihata, and Brian D. Morris of the Eastern District of New York are in charge of today’s prosecution.
The government’s investigation is ongoing.
The Defendant:
RICHARD K. LAI
Age: 55
Nationality: American
E.D.N.Y. Docket No. 17 CR 224 (PKC)
Florida Couple Arrested for Smuggling Lovebirds Protected Under the Endangered Species ActRead the Press Release
A complaint was unsealed earlier today in Brooklyn federal court charging Robert Burgos and Vanessa Burgos with illegally importing a dozen Fischer Lovebirds into the United States in violation of the Endangered Species Act. The defendants were arrested this morning in Avon Park, Florida, and their initial appearances are scheduled for tomorrow morning at 9:30 a.m. at the United States Courthouse in Fort Pierce, Florida.[1]
The charges were announced by Bridget M. Rohde, Acting United States Attorney for the Eastern District of New York, and Ed Grace, Deputy Chief of Law Enforcement, United States Fish and Wildlife Service (FWS).
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 alleged in the complaint, 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 run by the defendants, and was being held at the United States Department of Agriculture (USDA) quarantine center in New York.
Over the course of the investigation, the USDA sent photographs of the lovebirds from the June 11, 2015 shipment to FWS, and a forensic ornithologist at the FWS National Forensics Laboratory confirmed that the lovebirds were not Rosy-Faced Lovebirds, but were, in fact, Fischer Lovebirds.
As further alleged, the investigation additionally revealed that the defendants allegedly traveled to Indonesia to pick out the Fischer Lovebirds and used Facebook to coordinate the smuggling of the Fischer Lovebirds from Indonesia, including by conspiring with others to falsify import paperwork. The defendants also arranged for the Fischer Lovebirds to be shipped to Spain prior to entry into the United States in an attempt to evade U.S. restrictions on the import of birds from Indonesia that were in place at the time.
“For personal profit, the defendants knowingly conspired to evade an international treaty and federal laws enacted to protect a species of birds from the demands of the commercial market, and they will be held to account,” stated Acting United States Attorney Rohde.
“The smuggling of protected birds into the U.S. jeopardizes the health and survival of our native bird species,” Deputy Chief of Law Enforcement Grace stated. “In this case, smugglers allegedly used false documents and purposely traveled through Spain to hide the fact that most of these birds originated in Indonesia. The vigilance of our special agents and wildlife inspectors exposed this global wildlife trafficking scheme.”
Assistant United States Attorney Alicia N. Washington is in charge of the prosecution.
The Defendants:
ROBERT BURGOS
Age: 42
Avon Park, Florida
VANESSA BURGOS
Age: 32
Avon Park, Florida
E.D.N.Y. Docket No. 17-MJ-306
[1] The charges in the complaint are merely allegations, and the defendants are presumed innocent unless and until proven guilty.
Eight Members of Mexican Sex Trafficking Enterprise Plead Guilty to Racketeering, Sex Trafficking, and Related CrimesRead the Press Release
Eight members of an international criminal organization, known as the Rendon-Reyes Trafficking Organization, entered guilty pleas in federal district court in Brooklyn, New York, this month to Racketeering and other federal charges arising from their scheme to force young women and girls from Mexico and Latin America into prostitution. For over a decade, the defendants smuggled their victims into the United States, then used force, threats of force, fraud, deception, and coercion to compel them to engage in prostitution for the defendants’ profit, generating criminal proceeds which the defendants laundered back to Mexico.
The eight defendants were charged in July 2015 in a 27-count indictment in the Eastern District of New York with Racketeering and Racketeering Conspiracy involving predicate acts of sex trafficking by force, fraud, or coercion, sex trafficking of minors, money laundering, alien smuggling, and interstate transportation for prostitution, in addition to parallel substantive charges.
The defendants were arrested simultaneously in the United States and Mexico in November 2015 as part of bilateral enforcement action. Five of the defendants were apprehended in Mexico by Mexican authorities and later extradited, and three were arrested in the United States by the specialized Trafficking in Persons Unit of the New York Office of the Department of Homeland Security’s Homeland Security Investigations.
Attorney General Jeff Sessions, Acting Assistant Attorney General Tom Wheeler of the Justice Department’s Civil Rights Division, Acting U.S. Attorney Bridget M. Rohde of the Eastern District of New York and Executive Associate Director Peter T. Edge of the U.S. Immigration and Customs Enforcement's Homeland Security Investigations made the announcement.
In a series of guilty pleas entered between April 5 and April 21, 2017, all eight of the defendants pleaded guilty to charges of Racketeering involving predicate acts of sex trafficking by force, fraud, or coercion and sex trafficking of minors. The defendants are Jovan Rendon-Reyes, aka Jovani, 33, of Mexico; Saul Rendon-Reyes, aka Satanico, 39, of Queens; Guillermina Rendon-Reyes, 46, of Mexico; Francisco Rendon-Reyes, aka Pancho, 28, of Queens; Jose Rendon-Garcia, aka Gusano, 34, of Mexico; Felix Rojas, 47, of Mexico; Odilon Martinez-Rojas, aka Chino or Saul, 45, of Mexico; and Severiano Martinez-Rojas, 52, of Mexico.
In addition to the Racketeering charges, defendants Jovan Rendon-Reyes, Saul Rendon-Reyes, Felix Rojas, Odilon Martinez-Rojas and Severiano Martinez-Rojas each pleaded guilty to substantive offenses of sex trafficking by force, fraud, or coercion; defendant Jose Rendon-Garcia also pleaded guilty to sex trafficking of a minor; and defendant Francisco Rendon-Reyes pleaded guilty to interstate transportation for the purpose of prostitution.
Defendants Odilon Martinez-Rojas and Severiano Martinez-Rojas were also charged in a separate bilateral sex trafficking prosecution in the Northern District of Georgia in 2013. Odilon Martinez-Rojas was convicted in October 2014 and sentenced to 262 months’ imprisonment in January 2015 in that case. Defendant Severiano Martinez-Rojas had remained a fugitive from that prosecution until apprehended during the November 2015 bilateral enforcement operation. On April 18, 2017, he pleaded guilty to one count of sex trafficking charged in the Northern District of Georgia case, in proceedings transferred to the Eastern District of New York for entry of the defendant’s guilty plea.
According to documents filed in court and the defendants’ admissions during the plea proceedings, the Rendon-Reyes Trafficking Organization operated as a family-based enterprise that profited by prostituting young women and girls. According to their admissions during plea proceedings, the defendants and their associates recruited young women and girls from Mexico on false promises, smuggled them into the United States, prostituted them in New York, Georgia, and other locations, and retained the prostitution proceeds for members of the family-based criminal organization. During their guilty plea hearings, the eight defendants collectively admitted to participating in the sex trafficking of nine women and two minor girls, as well as the prostitution of a twelfth woman.
“The Department of Justice is committed to bringing to justice anyone who engages in the abominable crime of human trafficking,” said Attorney General Sessions. “The defendants in this case preyed on vulnerable young women and girls, and brought them to the United States with the sole purpose of subjecting them to degradation that no person should have to endure. Now these criminals will face justice for their acts, which brazenly disregarded the humanity of the victims, the integrity of our borders, and the rule of law. I am grateful for the efforts of our investigators and prosecutors, and the strong collaboration between the Eastern District of New York, the Human Trafficking Prosecution Unit, and the federal agents from the New York Office of Homeland Security Investigations. I also thank our Mexican partners for working closely with us to dismantle trafficking networks and protect innocent lives.”
“These convictions bring a measure of justice on behalf of the victims the defendants held in sexual servitude. We will continue to work tirelessly to dismantle human trafficking networks and to condemn all forms of modern-day slavery” said Acting Assistant Attorney General Wheeler. “The U.S.-Mexico Bilateral Human Trafficking Enforcement Initiative has proven instrumental in countering transnational trafficking threats, and we look forward to building on the momentum of this highly effective engagement with Mexican authorities.”
“This case demonstrates our Office’s continuing commitment to seeking justice for the victims of modern day slavery,” said Acting U.S. Attorney Rohde. “As demonstrated by our efforts over the last decade to bring sex traffickers to justice, the Eastern District of New York remains steadfast in its resolve to eradicate organizations that enslave young women and girls, and to bring trafficking victims out of the shadows. I sincerely hope that these pleas bring some measure of closure for the victims of these heinous crimes.”
Acting U.S. Attorney Rohde also expressed thanks to the members of HSI-New York’s Trafficking in Persons Unit for their leadership on the multi-year investigation of this case, and their continued partnership with the Eastern District of New York in the effort to end human trafficking.
“U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) remains committed to disrupting and dismantling transnational criminal organizations willing to do anything, including victimizing women and girls, to make money,” said HSI Executive Associate Director Edge. “Human trafficking is modern-day slavery, and HSI will continue collaboration with our local, state, federal, and global partners, as well as the NGO community, to bring justice to those impacted by this terrible crime and to assist the victims in their recovery.”
When sentenced, each defendant faces a maximum sentence of life imprisonment. In addition, defendants Jovan Rendon-Reyes, Saul Rendon-Reyes, Felix Rojas, Odilon Martinez-Rojas and Severiano Martinez-Rojas face mandatory minimum sentences of fifteen years of imprisonment pursuant to their convictions for sex trafficking by force, fraud, or coercion, and defendant Jose Rendon-Garcia faces a mandatory minimum sentence of ten years of imprisonment resulting from his conviction for sex trafficking of a minor. As part of the plea agreements, the defendants will also be ordered to pay restitution to the victims identified in the indictment, in an amount to be determined at the time of sentencing.
The investigation, prosecution, bilateral enforcement action, and extraditions of the defendants apprehended in Mexico were coordinated through the U.S.-Mexico Bilateral Human Trafficking Enforcement Initiative. Since 2009, the Departments of Justice and Homeland Security have collaborated with Mexican law enforcement counterparts in a Bilateral Human Trafficking Enforcement Initiative to more effectively dismantle human trafficking networks operating across the U.S.-Mexico border, bring human traffickers to justice, restore the rights and dignity of human trafficking victims, and reunite victims with their children. These efforts have resulted in successful prosecutions in both Mexico and the United States, including U.S. federal prosecutions of over 170 defendants in multiple cases in Georgia, New York, Florida, and Texas, in addition to numerous Mexican federal and state prosecutions of associated sex traffickers. The convictions in this case are also the latest development in the Eastern District of New York’s comprehensive anti-trafficking program, which has to date indicted more than 70 defendants, assisted more than 135 victims, including 39 minors, reunited 19 victims’ children with their mothers, and secured restitution orders of over $4 million on behalf of trafficking victims.
In announcing the convictions, Attorney General Sessions, Acting Assistant Attorney Wheeler, and Acting U.S. Attorney Rohde commended HSI New York’s Trafficking in Persons Unit for leading the investigation of the Rendon-Reyes Trafficking Organization; thanked the HSI Mexico City Attaché Office, the Department of Justice’s Office of International Affairs, the State Department, and the New York City Police Department, the FBI’s Atlanta Division, and the U.S. Attorney’s Office of the Northern District of Georgia for their assistance; and praised the government of Mexico for its role in advancing bilateral anti-trafficking enforcement efforts. The Justice Department also acknowledged the non-governmental victim service providers and advocates for their dedicated efforts to restore and improve the lives of survivors of trafficking and their families.
The case against the Rendon-Reyes Trafficking Organization was investigated by HSI New York’s Trafficking in Persons Unit, and is being prosecuted by Assistant U.S. Attorneys Taryn A. Merkl and Margaret Lee of the Eastern District of New York and Deputy Director Benjamin Hawk of the Civil Rights Division’s Human Trafficking Prosecution Unit.
Eight Members of Mexican Sex Trafficking Enterprise Plead Guilty to Racketeering, Sex Trafficking, and Related CrimesRead the Press Release
WASHINGTON – Eight members of an international criminal organization, known as the Rendon-Reyes Trafficking Organization, entered guilty pleas in federal district court in Brooklyn, New York, this month to Racketeering and other federal charges arising from their scheme to force young women and girls from Mexico and Latin America into prostitution. For over a decade, the defendants smuggled their victims into the United States, then used force, threats of force, fraud, deception, and coercion to compel them to engage in prostitution for the defendants’ profit, generating criminal proceeds which the defendants laundered back to Mexico.
The eight defendants were charged in July 2015 in a 27-count indictment in the Eastern District of New York with Racketeering and Racketeering Conspiracy involving predicate acts of sex trafficking by force, fraud, or coercion, sex trafficking of minors, money laundering, alien smuggling, and interstate transportation for prostitution, in addition to parallel substantive charges.
The defendants were arrested simultaneously in the United States and Mexico in November 2015 as part of bilateral enforcement action. Five of the defendants were apprehended in Mexico by Mexican authorities and later extradited, and three were arrested in the United States by the specialized Trafficking in Persons Unit of the New York Office of the Department of Homeland Security’s Homeland Security Investigations.
Attorney General Jeff Sessions, Acting Assistant Attorney General Tom Wheeler of the Justice Department’s Civil Rights Division, Acting U.S. Attorney Bridget M. Rohde of the Eastern District of New York and Executive Associate Director Peter T. Edge of the U.S. Immigration and Customs Enforcement's Homeland Security Investigations made the announcement.
In a series of guilty pleas entered between April 5 and April 21, 2017, all eight of the defendants pleaded guilty to charges of Racketeering involving predicate acts of sex trafficking by force, fraud, or coercion and sex trafficking of minors. The defendants are Jovan Rendon-Reyes, aka Jovani, 33, of Mexico; Saul Rendon-Reyes, aka Satanico, 39, of Queens; Guillermina Rendon-Reyes, 46, of Mexico; Francisco Rendon-Reyes, aka Pancho, 28, of Queens; Jose Rendon-Garcia, aka Gusano, 34, of Mexico; Felix Rojas, 47, of Mexico; Odilon Martinez-Rojas, aka Chino or Saul, 45, of Mexico; and Severiano Martinez-Rojas, 52, of Mexico.
In addition to the Racketeering charges, defendants Jovan Rendon-Reyes, Saul Rendon-Reyes, Felix Rojas, Odilon Martinez-Rojas and Severiano Martinez-Rojas each pleaded guilty to substantive offenses of sex trafficking by force, fraud, or coercion; defendant Jose Rendon-Garcia also pleaded guilty to sex trafficking of a minor; and defendant Francisco Rendon-Reyes pleaded guilty to interstate transportation for the purpose of prostitution.
Defendants Odilon Martinez-Rojas and Severiano Martinez-Rojas were also charged in a separate bilateral sex trafficking prosecution in the Northern District of Georgia in 2013. Odilon Martinez-Rojas was convicted in October 2014 and sentenced to 262 months’ imprisonment in January 2015 in that case. Defendant Severiano Martinez-Rojas had remained a fugitive from that prosecution until apprehended during the November 2015 bilateral enforcement operation. On April 18, 2017, he pleaded guilty to one count of sex trafficking charged in the Northern District of Georgia case, in proceedings transferred to the Eastern District of New York for entry of the defendant’s guilty plea.
According to documents filed in court and the defendants’ admissions during the plea proceedings, the Rendon-Reyes Trafficking Organization operated as a family-based enterprise that profited by prostituting young women and girls. According to their admissions during plea proceedings, the defendants and their associates recruited young women and girls from Mexico on false promises, smuggled them into the United States, prostituted them in New York, Georgia, and other locations, and retained the prostitution proceeds for members of the family-based criminal organization. During their guilty plea hearings, the eight defendants collectively admitted to participating in the sex trafficking of nine women and two minor girls, as well as the prostitution of a twelfth woman.
“The Department of Justice is committed to bringing to justice anyone who engages in the abominable crime of human trafficking,” said Attorney General Sessions. “The defendants in this case preyed on vulnerable young women and girls, and brought them to the United States with the sole purpose of subjecting them to degradation that no person should have to endure. Now these criminals will face justice for their acts, which brazenly disregarded the humanity of the victims, the integrity of our borders, and the rule of law. I am grateful for the efforts of our investigators and prosecutors, and the strong collaboration between the Eastern District of New York, the Human Trafficking Prosecution Unit, and the federal agents from the New York Office of Homeland Security Investigations. I also thank our Mexican partners for working closely with us to dismantle trafficking networks and protect innocent lives.”
“These convictions bring a measure of justice on behalf of the victims the defendants held in sexual servitude. We will continue to work tirelessly to dismantle human trafficking networks and to condemn all forms of modern-day slavery” said Acting Assistant Attorney General Wheeler. “The U.S.-Mexico Bilateral Human Trafficking Enforcement Initiative has proven instrumental in countering transnational trafficking threats, and we look forward to building on the momentum of this highly effective engagement with Mexican authorities.”“This case demonstrates our Office’s continuing commitment to seeking justice for the victims of modern day slavery,” said Acting U.S. Attorney Rohde. “As demonstrated by our efforts over the last decade to bring sex traffickers to justice, the Eastern District of New York remains steadfast in its resolve to eradicate organizations that enslave young women and girls, and to bring trafficking victims out of the shadows. I sincerely hope that these pleas bring some measure of closure for the victims of these heinous crimes.”
Acting U.S. Attorney Rohde also expressed thanks to the members of HSI-New York’s Trafficking in Persons Unit for their leadership on the multi-year investigation of this case, and their continued partnership with the Eastern District of New York in the effort to end human trafficking.
“U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) remains committed to disrupting and dismantling transnational criminal organizations willing to do anything, including victimizing women and girls, to make money,” said HSI Executive Associate Director Edge. “Human trafficking is modern-day slavery, and HSI will continue collaboration with our local, state, federal, and global partners, as well as the NGO community, to bring justice to those impacted by this terrible crime and to assist the victims in their recovery.”
When sentenced, each defendant faces a maximum sentence of life imprisonment. In addition, defendants Jovan Rendon-Reyes, Saul Rendon-Reyes, Felix Rojas, Odilon Martinez-Rojas and Severiano Martinez-Rojas face mandatory minimum sentences of fifteen years of imprisonment pursuant to their convictions for sex trafficking by force, fraud, or coercion, and defendant Jose Rendon-Garcia faces a mandatory minimum sentence of ten years of imprisonment resulting from his conviction for sex trafficking of a minor. As part of the plea agreements, the defendants will also be ordered to pay restitution to the victims identified in the indictment, in an amount to be determined at the time of sentencing.
The investigation, prosecution, bilateral enforcement action, and extraditions of the defendants apprehended in Mexico were coordinated through the U.S.-Mexico Bilateral Human Trafficking Enforcement Initiative. Since 2009, the Departments of Justice and Homeland Security have collaborated with Mexican law enforcement counterparts in a Bilateral Human Trafficking Enforcement Initiative to more effectively dismantle human trafficking networks operating across the U.S.-Mexico border, bring human traffickers to justice, restore the rights and dignity of human trafficking victims, and reunite victims with their children. These efforts have resulted in successful prosecutions in both Mexico and the United States, including U.S. federal prosecutions of over 170 defendants in multiple cases in Georgia, New York, Florida, and Texas, in addition to numerous Mexican federal and state prosecutions of associated sex traffickers. The convictions in this case are also the latest development in the Eastern District of New York’s comprehensive anti-trafficking program, which has to date indicted more than 70 defendants, assisted more than 135 victims, including 39 minors, reunited 19 victims’ children with their mothers, and secured restitution orders of over $4 million on behalf of trafficking victims.
In announcing the convictions, Attorney General Sessions, Acting Assistant Attorney Wheeler, and Acting U.S. Attorney Rohde commended HSI New York’s Trafficking in Persons Unit for leading the investigation of the Rendon-Reyes Trafficking Organization; thanked the HSI Mexico City Attaché Office, the Department of Justice’s Office of International Affairs, the State Department, and the New York City Police Department, the FBI’s Atlanta Division, and the U.S. Attorney’s Office of the Northern District of Georgia for their assistance; and praised the government of Mexico for its role in advancing bilateral anti-trafficking enforcement efforts. The Justice Department also acknowledged the non-governmental victim service providers and advocates for their dedicated efforts to restore and improve the lives of survivors of trafficking and their families.
The case against the Rendon-Reyes Trafficking Organization was investigated by HSI New York’s Trafficking in Persons Unit, and is being prosecuted by Assistant U.S. Attorneys Taryn A. Merkl and Margaret Lee of the Eastern District of New York and Deputy Director Benjamin Hawk of the Civil Rights Division’s Human Trafficking Prosecution Unit.
Download: Rendon-Reyes et al Indictment
Cybercriminal Who Created Global Botnet Infected with Malicious Software Extradited to Face Click Fraud ChargesRead the Press Release
Earlier today, an indictment was unsealed in Brooklyn federal court charging Fabio Gasperini, an Italian citizen, with crimes related to his hacking of computers, creation of a global botnet, and perpetration of a fraud in which he used bots to mimic “clicks” on website advertisements and obtain advertising revenue. The charges include computer intrusion, wire fraud conspiracy, wire fraud, and money laundering conspiracy. The defendant was arrested in Amsterdam, the Netherlands, on June 18, 2016, and was extradited to the United States yesterday. He is scheduled to be arraigned at 2:00 p.m. today, April 21, 2017, before United States Magistrate Judge Peggy Kuo at the U.S. Courthouse, 225 Cadman Plaza East, Brooklyn, New York.
The indictment and extradition were announced by 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).
As alleged in court papers, Gasperini covertly hacked into computer servers owned by companies and individuals in the United States and elsewhere and created an exclusive backdoor that enabled him to access the data and computing power of those servers. Gasperini’s scheme specifically targeted a type of server that companies and individuals typically use for large-scale data storage and transfer. Gasperini compromised servers that contained sensitive data and files.
Through his backdoor, Gasperini allegedly implanted malicious software onto the compromised servers. The malicious software served to further propagate Gasperini’s scheme by scanning the internet and identifying additional vulnerable servers for infection, enabling Gasperini to create a botnet, a network of computers (such as servers) infected with malicious software without users’ knowledge that a malicious actor can remotely control and use for malicious purposes.
Gasperini’s botnet was spread over multiple computer servers around the world. Gasperini used computer servers in the United States to manage the botnet and to provide instructions and resources to the compromised servers in the botnet. Gasperini used the botnet to perpetrate a click fraud. A click fraud is a type of cybercrime in which a malicious actor fraudulently obtains money from advertising companies and businesses.
Businesses commonly hire online advertising companies to send traffic to their websites. These advertising companies in turn contract with individuals, typically someone who operates a website, to place on the website certain links advertising the businesses’ products or services, and are then compensated based upon the number of visitors to the website that click on the link. The advertising companies typically pay the individuals on a per-click basis. To conduct a click fraud scheme, a malicious actor can, for example, remotely command a botnet to flood a particular website advertisement with electronic communications that register with the advertising company as clicks by a human user on the advertisement. This type of command falsely and fraudulent inflates the number of clicks reported to the advertising companies, causing them to pay for clicks perpetrated by automated bots rather than clicks completed by potential customers who, in fact, viewed and clicked on the advertisements.
Some of the malicious software that Gasperini installed onto the servers he had compromised was designed to disguise a compromised server as a web browser and cause it to simulate human clicks on website advertisements through automated electronic commands. Gasperini’s software was configured to send automated clicks to advertisements hosted on websites that he owned, enabling Gasperini to generate revenue from advertising companies and businesses through fake internet traffic.
“Cybersecurity is a priority and we will pursue those who hack into computers, spread malicious software, and victimize U.S. companies and computers until they are brought to justice,” stated Acting United States Attorney Bridget M. Rohde. Ms. Rohde expressed her grateful appreciation to the Netherlands Ministry of Security and Justice, for their assistance in effecting the defendant’s arrest and extradition; the Italian National Police, Postal and Telecommunications Service, for their assistance in the investigation; the United States Marshals Service, for their assistance in transporting the defendant to the United States; and the U.S. Department of State Regional Security Officer in the Netherlands, for their assistance in facilitating the defendant’s extradition.
“As alleged, Gasperini hacked into servers to create a global botnet that was used to generate profits from click fraud,” stated, Assistant Director-in-Charge Sweeney. “This is yet another case that demonstrates the commitment of the FBI’s Cyber Task Force to investigate and bring to justice those who commit cybercrime, regardless of where they may reside.”
The charges in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty.
The government’s case is being prosecuted by the Office’s National Security & Cybercrime Section. Assistant United States Attorney Saritha Komatireddy is in charge of the prosecution.
The Defendant:
FABIO GASPERINI
Age: 34
Residence: Rome, Italy
E.D.N.Y. Docket No. 16-CR-441
Former New York City Police Department Sergeant Sentenced to 28 Years in Prison for Conspiring to Sexually Exploit ChildrenRead the Press Release
Earlier today, Alberto Randazzo, a former sergeant with the New York City Police Department, was sentenced to 28 years in prison, eight years of supervised release and sex offender registration for sexual exploitation and receipt of child pornography. Today’s sentencing took place before United States District Judge Pamela K. Chen at the federal courthouse in Brooklyn, New York.
The sentence was announced by Bridget M. Rohde, Acting United States Attorney for the Eastern District of New York, Angel M. Melendez, Special Agent-in-Charge, U.S. Immigration and Customs Enforcement, Homeland Security Investigations (HSI), New York, and James P. O’Neill, Commissioner, New York City Police Department (NYPD).
“Alberto Randazzo lived a double life, publicly serving as an NYPD police officer while privately engaging in conduct to exploit the most vulnerable members of the community – our children,” stated Acting United States Attorney Rohde. “Together with our law enforcement partners we will continue to strive to protect the most vulnerable among us.”
“Randazzo held a position with the sole purpose to serve and protect the people of this city. Instead, he targeted certain women, persuaded them to sexually abuse their children and had them send him pictures and videos of the acts,” said Special Agent-in-Charge Melendez. “His behavior is no less than deplorable. It is with continued joint law enforcement efforts that we can target these types of offenders and ensure that they are punished for their heinous deeds.”
“Alberto Randazzo’s exploitation of innocent children is unconscionable. I am grateful to our detectives in Internal Affairs, Homeland Security, and the U.S. Attorney’s Office in the Eastern District of New York for their work in bringing Randazzo to justice for these horrific crimes,” said Police Commissioner James P. O’Neill.
On July 12, 2016, the defendant pleaded guilty to two counts of conspiracy to sexually exploit a child and one count of receipt of child pornography. According to court filings, from as early as 2010 through 2013, Randazzo targeted women through websites such as Ashley Madison and Match.com and persuaded them to sexually abuse children to whom they had access, so he could watch the abuse. Randazzo was caught in February 2013, when a witness found disturbing text messages on Randazzo’s phone and uncovered emails from women sending Randazzo pictures of them molesting their children. When the witness confronted him, Randazzo admitted his sexual interest in mothers having sex with their children.
Based on the information obtained from the witness and the photographs, the Internal Affairs Bureau (IAB) of the NYPD obtained a search warrant for Randazzo’s apartment and found numerous images and videos of child pornography, including a number of videos of child pornography that were created by Randazzo himself. Randazzo was arrested and charged in Queens Criminal Court. At the time of his arrest, Randazzo had been a member of the NYPD for 15 years. While on bail in connection with that case, Randazzo was discovered by Special Agents of HSI to be downloading child pornography, which led to the federal investigation and federal charges being filed.
At sentencing the government presented evidence that at least five women complied with Randazzo’s solicitations and sexually abused children in order to satisfy his sexual desires. Randazzo’s victims ranged in age from a few months to eight years old, and he traveled out of state to watch two of them be molested in person. Randazzo arranged to have the eight-year-old victim drugged so that he would not remember the abuse.
Three of the women Randazzo solicited have also been charged in the Eastern District of New York. Two have pleaded guilty, one of whom was sentenced to five years imprisonment, one of whom is awaiting sentencing, and another is awaiting trial.
Ms. Rohde thanked HSI and the NYPD for their joint efforts in bringing Randazzo to justice and thanked the Queens District Attorney’s Office for their continuing assistance.
The government’s case is being prosecuted by Assistant United States Attorneys Tyler Smith and Moira Kim Penza.
The Defendant:
ALBERTO RANDAZZO
Age: 40
Astoria, New York
E.D.N.Y. Docket No. 14-CR-189 (PKC)
Drug Trafficker Who Ran Cocaine Importation Scheme Out of His Family’s Queens-Based Restaurant Receives 18-Year Prison SentenceRead the Press Release
Earlier today, United States District Judge Raymond J. Dearie sentenced the defendant Gregorio Gigliotti to 18 years in prison for narcotics-trafficking and firearms-related offenses.
The sentence was 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 Angel M. Melendez, Special-Agent-in-Charge, U.S. Immigration and Customs Enforcement, Homeland Security Investigations (HSI), New York.
Following a two-week trial in July 2016, a federal jury in Brooklyn, New York found the defendant Gregorio Gigliotti and his son, Angelo Gigliotti, guilty of participating in a long-running cocaine importation scheme. The jury also found the defendant guilty of unlawfully possessing firearms – including a defaced firearm – in furtherance of the drug-trafficking operation. The defendant’s wife, Eleonora Gigliotti, also participated in the family-run drug-trafficking operation, and in January 2017, pled guilty to conspiring to import cocaine. Angelo Gigliotti and Eleonora Gigliotti are awaiting sentencing, and face mandatory minimum sentences of 20 years and 5 years, respectively.
The defendants’ arrests arose out of a long-term investigation by the United States Immigration and Customs Enforcement (“ICE”) and the Federal Bureau of Investigation (“FBI”), in coordination with law enforcement authorities in Italy, into a transnational cocaine trafficking operation. Between October and December 2014, federal law enforcement officers intercepted and seized approximately 55 kilograms of cocaine that had been hidden inside cardboard boxes that contained cassava and sent from co-conspirators in Costa Rica to the defendants in New York. To facilitate their operation, the defendants used their family-run Italian restaurant in Corona, Queens, Cucino Amodo Mio, as well as a produce importation company, Fresh Farm Export Corp., that was incorporated in 2012 to provide a cover for their drug-trafficking operation. On March 11, 2015, the day the defendants were arrested, federal law enforcement officers executed a search warrant at Cucino Amodo Mio and recovered one 12 gauge shotgun; one loaded .357 magnum Trooper revolver; one loaded .22 caliber Colt pistol; one loaded .38 caliber Charter Arms revolver; one 9 mm Keltec pistol; one .762 Czech pistol; one .38 caliber Derringer that had a defaced serial number; ammunition magazines; loose ammunition; two handgun holsters; brass knuckles; a handwritten ledger showing the movement of more than $350,000; and more than $100,000 in cash.
The government’s case is being handled by the Office’s Organized Crime & Gangs Section. Assistant United States Attorneys Margaret E. Gandy and Keith D. Edelman are in charge of the prosecution..
The Defendants:
GREGORIO GIGLIOTTI
Age: 61
Malba, New York
E.D.N.Y. Docket No. 15-CR-204 (S-2) (RJD)
Four, Including an Anti-Money Laundering Consultant, Arrested for Multi-Million Dollar Securities Fraud and Money Laundering SchemesRead the Press Release
Four defendants were arrested today on charges of securities fraud conspiracy and money laundering conspiracy for their involvement in schemes to fraudulently manipulate the stock of BioCube, Inc. (BioCube), a U.S. publicly traded company, and to launder approximately $2 million in illegal proceeds using offshore bank and brokerage accounts. Since 2010, BioCube has purported to have a series of different business purposes, including, most recently, planning to market and distribute devices for detecting marijuana on a user’s breath. The charged individuals are: Chris Messalas, a former securities broker previously barred by the Securities and Exchange Commission (SEC); Boris Rubizhevky, the former Chief Executive Officer of BioCube; Michael Garnick, a Philadelphia-based attorney; and Dimitrios Argyros, an anti-money laundering consultant. Messalas, Rubizhevsky and Garnick were charged with securities fraud conspiracy. Messalas and Argyros were charged with money laundering conspiracy.
Argyros was arrested at JFK International Airport after arriving on a flight from Cyprus via London, Messalas was arrested at his home in New York and Rubizhevsky was arrested in New Jersey. Their initial appearances are scheduled for this afternoon before United States Magistrate Judge Cheryl L. Pollak at the federal courthouse in Brooklyn. Garnick was arrested in Pennsylvania. His initial appearance is scheduled for this afternoon before Magistrate Judge Thomas J. Rueter at the federal courthouse in Philadelphia, Pennsylvania.
The charges 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 Kathy A. Enstrom, Acting Special Agent-in-Charge, United States Internal Revenue Service, Criminal Investigation, New York (IRS-CI).
“As alleged in the criminal complaint, the defendants planned a pump and dump scheme, and money laundering of the proceeds, using offshore accounts and an anti-money laundering consultant to avoid detection by law enforcement,” stated Acting United States Attorney Rohde. “Together with our law enforcement partners, we will continue our efforts to protect the investing public, safeguard the financial integrity of our banking system and prevent the use of offshore bank and brokerage accounts to subvert U.S. laws and regulations.” Ms. Rohde thanked the Securities and Exchange Commission for its cooperation and assistance on the investigation.
“When would-be stockholders purchased shares of BioCube, Inc., they knew about the market risks involved in investing,” stated Assistant Director-in-Charge Sweeney. “What they didn’t know was that the odds had already been stacked against them, as alleged, in this ruse concocted by the four individuals charged today. Those who employ schemes to capitalize on other people’s losses will most certainly be brought to justice, and we’re here to remind criminals that this type of dishonorable behavior will never be acceptable. As such, the FBI and our partners will continue to uphold the promise we made to those who invest their trust in us.”
“At this time of year, when hard working citizens are sitting down to prepare their tax returns, IRS-Criminal Investigation (IRS-CI) remains vigilant in our pursuit of those unscrupulous individuals that defraud the American public as well as the government,” stated Acting Special Agent-in-Charge Enstrom. “IRS-CI is proud to bring our forensic accounting skills to this joint venture and help put a stop to this and other types of white collar crime, as alleged in the criminal complaint.”
According to the complaint unsealed today in Brooklyn federal court, Messalas, Rubizhevsky and Garnick engaged in a scheme to defraud BioCube’s investors and potential investors by concealing Messalas’s beneficial ownership and control of BioCube shares, so that Messalas could exercise control over the price and trading of BioCube’s stock.
As the complaint further alleges, Messalas and Argyros engaged in a related conspiracy to launder approximately $2 million in proceeds of the BioCube “pump and dump” scheme by depositing BioCube shares into offshore accounts in the names of nominees in locations including Cyprus and the Bahamas. The scheme was designed to launder a portion of the fraudulent proceeds from the stock manipulation scheme from the United States through offshore accounts, and circumvent the IRS’s reporting requirements under the Foreign Account Tax Compliance Act (FATCA). As alleged in the complaint, Argyros touted his ability to capitalize on his anti-money laundering expertise during conversations with an individual posing as a co-conspirator in the money laundering scheme who, unbeknownst to Argyros, was working with the FBI.
The charges in the complaint are merely allegations, and the defendants are presumed innocent unless and until proven guilty. If convicted of the charges against them, Messalas faces a maximum sentence of 25 years’ imprisonment, Rubizhevsky and Garnick face maximum sentences of five years’ imprisonment, and Argyros faces a maximum sentence of 20 years’ imprisonment.
* * *
The government’s case is being handled by the Office’s Business and Securities Fraud Section. Assistant United States Attorneys Tyler Smith, Alicyn Cooley and Jack Dennehy are in charge of the prosecution.
* * *
The Defendants:
CHRIS MESSALAS
Age: 50
Staten Island, New York
BORIS RUBIZHEVSKY
Age: 66
Closter, New Jersey
MICHAEL GARNICK
Age: 58
Philadelphia, Pennsylvania
DIMITRIOS ARGYROS
Age: 50
Ho-Ho-Kus, New Jersey
E.D.N.Y. Docket No. 17-MJ-321
U.S. Customs and Border Protection Officer Indicted in Conspiracy to Import More Than 100 Pounds of Cocaine into the United StatesRead the Press Release
Fernando Marte was arraigned this morning before United States Magistrate Judge Cheryl L. Pollak at the federal courthouse in Brooklyn. Marte has been charged in a two-count indictment with conspiring to import, and with importing, more than five kilograms of cocaine from the Dominican Republic.
The charges were announced by Bridget M. Rohde, Acting United States Attorney for the Eastern District of New York; Angel M. Melendez, Special Agent-in-Charge, U.S. Immigration and Customs Enforcement, Homeland Security Investigations, New York; Leon Hayward, Acting Director, U.S. Customs and Border Protection, Field Operations New York; and Gregory Null, Special Agent-in-Charge, U.S. Department of Homeland Security, Office of the Inspector General.
As alleged in the indictment and in a previously filed complaint, beginning in January 2016, Marte, an employee of the United States Customs and Border Protection (CBP) who worked at John F. Kennedy International Airport (JFK), conspired to import cocaine into the United States from the Dominican Republic. On February 7, 2017, while on duty for CBP, Marte approached two individuals who had arrived together at JFK on a flight from the Dominican Republic. Marte escorted the individuals to the baggage claim area where they loaded two suitcases onto a baggage cart. Marte then escorted one of the individuals and the baggage cart through the secondary inspection point in the terminal.
Upon searching the suitcases, CBP officers recovered 45 brick-shaped packages containing approximately 45 kilograms of cocaine. Further investigation has revealed that Marte previously escorted at least one other drug smuggler from the Dominican Republic through the inspection area at JFK Airport.
“Law enforcement officers who use their official positions to commit crimes pose a particularly grave threat to our communities by not only facilitating crime but by undermining respect for law enforcement,” stated Acting United States Attorney Rohde. “The charges announced today send a message to those who would so betray the public.” Ms. Rohde extended her appreciation to CBP’s Office of Professional Responsibility for its work on the investigation.
“As a public servant entrusted with border security and keeping dangerous drugs out of our country, Officer Marte instead allegedly sought to serve himself and stained the badge he wore by doing so, by allowing cocaine to flow through JFK airport and into our city. For corrupt officers who think they can hide behind their badge as they engage in transnational criminal activity, today’s indictment shows you will be caught and brought to justice,” stated Special Agent-in-Charge Melendez.
“U.S. Customs and Border Protection stresses honor and integrity in every aspect of our mission. If you have integrity, you will not taint the image or disgrace the hard work of the men and women who wear the CBP uniform. There is no place in our ranks for individuals who violate our laws and break the trust of the American people. I thank our law enforcement partners for their assistance in helping to preserve the core values of our agency - vigilance, service and integrity,” stated Acting Director Hayward.
“Mr. Marte’s arraignment is a step in the right direction to maintain the public’s trust. This investigation was a concerted effort among law enforcement partners that worked tirelessly to hold Mr. Marte accountable,” stated Special Agent-in-Charge Null.
The charges in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty. If convicted, the defendant faces a mandatory minimum of 10 years’ imprisonment and up to life imprisonment.
The government’s case is being handled by the Office’s Public Integrity Section. Assistant United States Attorneys David K. Kessler, G. Karthik Srinivasan, and Elizabeth Macchiaverna are in charge of the prosecution.
The Defendant:
FERNANDO MARTE
Age: 28
Farmingdale, New York
E.D.N.Y. Docket No. 17-CR-191 (ERK)
Secret Partner at One World Trade Center Construction Firm Pleads Guilty to Obstruction of Justice and Making A False Tax ReturnRead the Press Release
Earlier today, Vincent Vertuccio, who has maintained a long affiliation with the Bonanno organized crime family of La Cosa Nostra, pleaded guilty at the federal courthouse in Brooklyn, New York, to conspiring to alter records for use in a grand jury investigation and to making and subscribing a false tax return. The plea was entered before United States District Judge Eric N. Vitaliano. Pursuant to Vertuccio’s plea agreement with the government, Vertuccio agreed to pay over $1 million in restitution as part of the sentence imposed by the Court.
The plea was announced by Bridget M. Rohde, Acting United States Attorney for the Eastern District of New York; Kathy A. Enstrom, Acting Special Agent-in-Charge, Internal Revenue Service-Criminal Investigation, New York (IRS); Michael C. Mikulka, Special Agent-in-Charge, United States Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations (DOL-OIG); and Michael Nestor, Inspector General for the Port Authority of New York and New Jersey (Port Authority-OIG). For its investigative work and assistance in the case, Ms. Rohde also extended her grateful appreciation to the Federal Bureau of Investigation, New York Field Office.
According to court filings and facts presented during the plea proceeding, Vertuccio was under investigation by a grand jury in the Eastern District of New York for conspiring to defraud the Port Authority of New York and New Jersey in connection with the One World Trade Center project located in lower Manhattan, as well as related money laundering and tax crimes. As uncovered through the grand jury investigation, Vertuccio had hidden his control of Crimson Construction Corporation (Crimson) during the bidding process for the One World Trade Center project in light of his ties to organized crime and so as to hide taxable income that he received through Crimson. As part of the investigation, the grand jury issued a subpoena in March 2013 to a Manhattan jewelry store for records relating to some of Vertuccio’s unreported income, which he received in the form of high-end jewelry. Vertuccio conspired to alter the invoices and sales receipts issued by the Manhattan jewelry store before the store provided the records to the grand jury, thereby concealing some of his taxable income and his role in Crimson. In addition to the obstruction scheme, Vertuccio also admitted to filing a false tax return for calendar year 2011. The investigation revealed that Vertuccio directed that a substantial amount of money from Crimson’s bank accounts be used to pay for his personal expenses, which Vertuccio failed to report as taxable income on his federal personal income tax returns.
When sentenced by Judge Vitaliano, Vertuccio faces up to 20 years in prison. As part of the plea, Vertuccio agreed to make restitution payments to the Port Authority in the amount of $1,089,771.09 and to the Internal Revenue Service in the amount of $374,057.30. The trial against Vertuccio’s alleged co-conspirator on the obstruction of justice charge, attorney John Servider, is scheduled to begin on June 12, 2017.
The government’s case is being handled jointly by the Office’s Organized Crime & Gangs Section and the Public Integrity Section. Assistant United States Attorneys M. Kristin Mace, Lan Nguyen, Jonathan P. Lax and Tanya Hajjar are in charge of the prosecution.
The Defendant:
VINCENT VERTUCCIO, a/k/a “Vinny”
Age: 61
Maspeth, New York
E.D.N.Y. Docket No. 15-CR-174 (ENV)
Hempstead Man Pleads Guilty to Robbery Conspiracy and Brandishing A Firearm During Crime of ViolenceRead the Press Release
Today, at the federal courthouse in Central Islip, New York, James Rogers pleaded guilty to conspiring to commit gunpoint robberies of commercial retail stores in Nassau and Suffolk Counties between August 10, 2015 and December 21, 2015 and the brandishing of a firearm during the robbery of a Petco Pet Store in Hicksville, New York on August 20, 2015.
The plea was announced by Bridget M. Rohde, Acting United States Attorney for the Eastern District of New York, Thomas C. Krumpter, Acting Nassau County Police Commissioner (NCPD), and Timothy D. Sini, Suffolk County Police Commissioner (SCPD).
As part of the plea, Rogers admitted his role in 15 robberies that occurred in 11 different towns in Nassau and Suffolk Counties, including the gunpoint robbery of Petco, various women’s clothing stores and a Babies R’ Us. On almost every occasion, Rogers committed the robberies at or near the opening or closing time of the businesses, his face covered, brandishing a black handgun, threatening employees and customers, and restraining them using toy handcuffs or plastic zip-tie restraints. Rogers took United States currency, jewelry and personal items from his victims, and fled the locations in a car or sports utility vehicle driven by his co-conspirator.
“Addressing violent crimes that terrorize our neighborhoods and jeopardize the safety of our citizens is a priority, and the defendant will now be held accountable for his actions,” stated Acting United States Attorney Rohde. Ms. Rohde extended her grateful appreciation to the Drug Enforcement Administration for its assistance on the case.
“This case is yet another example of great collaboration among law enforcement agencies in the region,” stated SCPD Commissioner Sini. “Let the message be clear: Suffolk and Nassau police departments, working with our federal law enforcement partners, will not tolerate perpetrators of violent crime in our communities.
“Defendant Rogers committed fifteen armed robberies in Nassau and Suffolk counties, preyed on unsuspecting business owners and their customers, thus becoming one of our top law enforcement priorities. Society is a safer place now that this defendant will be incarcerated,” stated Acting NCPD Commissioner Krumpter.
Today’s plea took place before United States District Judge Joseph F. Bianco. When he is sentenced on October 18, 2017, Rogers faces up to life in prison.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorney Charles N. Rose is in charge of the prosecution.
The Defendant:
JAMES ROGERS
Age: 47
Hempstead, New York
E.D.N.Y. Docket No. 16-CR-530 (JFB)
Cyber Criminal Pleads Guilty to Involvement in Long-Running Fraud Scheme Using Overseas Call CentersRead the Press Release
Earlier today, Hani Kabbara pleaded guilty to conspiracy to commit wire fraud. The plea was entered before United States Magistrate Judge Steven M. Gold at the federal courthouse in Brooklyn.
The guilty plea was announced by 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).
“In this 21st century version of an age-old scam, Kabbara conned unwitting victims, many of them elderly, into sending hundreds of thousands of dollars to himself and his co-conspirators,” stated Acting United States Attorney Rohde. “This Office is committed to protecting innocent victims targeted by predators like Kabbara who operate in cyberspace.”
“Kabbara preyed on well-intentioned victims, many who were in the U.S. and elderly, when he used a telephone scheme to extort them under the guise a loved one had been arrested and the victim needed to send money in order for the grandchild to be released from jail,” stated FBI Assistant Director in Charge Sweeney. “He masterminded his schemes from what he thought was the safety of his home in Canada, hiding behind encrypted chats and online monikers. Facing up to 20 years in prison puts an end to his calculating, criminal ways. This case again showcases the commitment of the FBI’s Cyber Task Force to investigate those involved in cybercrime and bring them to justice, no matter where in the world they may reside.”
Between February 2014 and August 2016, Kabbara, also known as “The Mayor,” ran a sophisticated scheme that used overseas call centers to extort money from unsuspecting victims, many of them elderly, in the United States. Kabbara and his co-conspirators used various threats and deceit, for example telling the victim that a grandchild had been arrested and the victim needed to send money in order for the grandchild to be released from jail. Kabbara and the co-conspirators demanded payment from his victims in the form of MoneyPaks, which are vouchers that can be loaded with cash and then used to fund prepaid debit cards. The defendant sold the MoneyPaks in online criminal forums or, with his co-conspirators, transferred the funds onto prepaid debit cards that had been obtained using stolen identities. The defendant and his co-conspirators, who communicated with each other anonymously in cyberspace through dark web forums and encrypted chat applications, then used a crew of workers in and around the New York area to withdraw funds from the debit cards, consolidate the cash and send it back to the defendant in Canada.
When he is sentenced by United States District Judge Margo K. Brodie on July 6, 2017, Kabbara faces up to 20 years in prison, as well as criminal forfeiture and fines.
The government’s case is being handled by the Office’s National Security & Cybercrime Section. Assistant United States Attorney Una A. Dean is in charge of the prosecution.
The Defendant:
HANI KABBARA
Age: 32
Quebec, Canada
E.D.N.Y. Docket No. 16-CR-472
Town of Hempstead Councilman Edward Ambrosino Indicted for Wire Fraud and Tax EvasionRead the Press Release
An eight-count indictment was unsealed today in United States District Court for the Eastern District of New York charging Edward Ambrosino with wire fraud, tax evasion, making and subscribing to false corporate tax returns, and failing to file a return or pay tax. The indictment was returned under seal by a federal grand jury sitting in Central Islip, New York on March 28, 2017. Ambrosino was arrested this morning and will be arraigned this afternoon before United States District Judge Joanna Seybert at the federal courthouse in Central Islip, New York.
The charges 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 Acting Special Agent-in-Charge Kathy A. Enstrom, Internal Revenue Service-Criminal Investigation (IRS-CI).
“As alleged in the indictment, the defendant, an elected public official, defrauded his former employer and committed a variety of tax offenses,” stated Acting United States Attorney Rohde. “Today’s indictment is a reminder of the obvious, that public officials are not exempt from paying their fair share of taxes and otherwise complying with the laws of the United States, just like any other citizen.”
“In this case as charged, Ambrosino’s crimes claimed as a victim, the law firm for whom he worked,” stated Assistant Director in Charge Sweeney. “As alleged, he also committed tax fraud, all the while serving as an elected public official. The FBI is committed to working with our law enforcement partners to ensure this type of behavior ceases to exist, no matter who is at fault.”
“The IRS enforces the nation’s tax laws, but also takes particular interest in cases where someone, for their own personal benefit, has taken what belonged to others. The indictment alleges, Mr. Ambrosino intentionally sought to undermine the tax laws of the United States, violate the public trust while ignoring the fiduciary responsibility he has with his employer,” stated Acting Special Agent-in-Charge Enstrom.
As detailed in the indictment, Ambrosino was an attorney licensed to practice in New York State, specializing in economic and industrial development and financings. Between approximately November 2001 and December 2015, he was “Of Counsel” at a law firm based in Uniondale, New York (the “Law Firm”). In addition, since March 2003, Ambrosino has served as a Councilman for the Town of Hempstead, New York. Since 2010, he has also acted as Special Counsel to the Nassau County Executive.
In 2011, Ambrosino incorporated Vanderbilt Consulting Group, Inc. (“Vanderbilt”). Ambrosino was the sole shareholder for Vanderbilt. In September 2012, Ambrosino opened a bank account in the name of Vanderbilt (the “Vanderbilt Bank Account”), and he was the sole authorized signer on that account.
As alleged in the indictment, from 2013 through 2015, in contravention of his compensation agreement with the Law Firm, Ambrosino diverted legal fees that he was required to provide to the Law Firm and deposited them into the Vanderbilt Bank Account. Among Ambrosino’s clients from whom he received legal fees were components of Nassau County, New York, including the Nassau County Industrial Development Agency (the “NCIDA”) and the Nassau County Local Economic Assistance Corporation (the “NCLEAC”). Between 2013 and 2015, Ambrosino received more than $1.3 million in payments from the NCIDA and NCLEAC. Of this amount, Ambrosino deposited more than $800,000 into a bank account, for which he was the sole signatory, rather than submitting the payments to the Law Firm as required under his compensation agreement.
As further alleged in the indictment, Ambrosino evaded substantial income tax due and owing by him and filed false and fraudulent corporate tax returns on behalf of Vanderbilt. For the 2011, 2012 and 2013 tax years, Ambrosino evaded the assessment of income tax by, among other things, deducting rent expenses on the Vanderbilt corporate tax returns that he knew were not business expenses. Specifically, Ambrosino claimed rent for a Manhattan apartment paid for by him on behalf of a third-party as a business expense. Ambrosino’s personal tax returns included the losses flowing from Vanderbilt for the 2011 and 2012 tax years. In addition, for the 2013 tax year, Ambrosino failed to claim approximately $315,000 in funds he diverted from the Law Firm on either his personal income tax return or the Vanderbilt corporate tax return. With respect to the 2014 tax year, Ambrosino did not timely file his personal tax return or the corporate tax return for Vanderbilt. As a result of Ambrosino’s conduct, the IRS suffered a tax loss of approximately $254,628.
If convicted, Ambrosino faces a maximum term of imprisonment of 20 years for the wire fraud charge, five years for each charge of tax evasion, three years for each charge of making and subscribing to false corporate tax returns, and one year for failing to file a tax return. The charges in the indictment are merely allegations, and the defendant is presumed innocent unless and until proven guilty.
The government’s case is being prosecuted by the Office’s Long Island Criminal Division. Assistant United States Attorneys Catherine M. Mirabile and Raymond A. Tierney are in charge of the prosecution.
The Defendant:
EDWARD AMBROSINOAge: 52
North Valley Stream, NY
E.D.N.Y. Docket No. 17-CR-162 (JS)
Leader of Violent Gang Sentenced to 50 Years in Prison for Racketeering and Other CrimesRead the Press Release
Harvey Christian was sentenced today to 50 years in prison by United States District Judge Eric N. Vitaliano at the federal courthouse in Brooklyn. Christian was convicted at trial in October 2014 on charges of racketeering -- including two murder conspiracies, firearms possession and trafficking in crack cocaine. The charges arose out of Christian’s long-time dominance of a drug crew that operated in the Park Hill housing complex in the Clifton neighborhood of Staten Island.
The sentence was announced by 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).
As proven at trial, Harvey Christian, also known as “Black,” and his brother Anthony Christian, also known as “Nitty,” led a violent narcotics distribution ring in Park Hill from 1991 to 2011. In the mid-1990s, the Christian brothers and their associates – including co-defendant Jason Quinn – sought to take control of more drug territory within Park Hill. To achieve this, they engaged in massive gun battles for months. Beginning in approximately 1994, the enterprise sought to expand its drug distribution operations into a neighboring apartment building, 260 Park Hill, which was controlled by a rival drug crew. This protracted conflict was known by its participants as the “260 Wars.” During one of the battles, in May 1995, law enforcement recovered 77 shell casings inside a residential building, outside on the street, and on a rooftop. One of the Christian brothers’ associates was murdered in that battle. All three trial defendants – Harvey Christian, Anthony Christian and Quinn – were convicted on all counts at trial. Judge Vitaliano previously sentenced Anthony Christian to life in prison and Quinn to 40 years in prison.
Leading up to the arrests of the Christian brothers and Quinn in 2011, multiple search warrants and arrests related to members of the enterprise and their associates were executed in and around Park Hill and elsewhere in New York. These searches and arrests resulted in the seizure of firearms and ammunition, including a Mac-11 pistol, as well as large quantities of crack and powder cocaine. During a search of the Christian brothers’ apartment in the Park Hill housing complex in February 2010, the New York City Police Department (NYPD) recovered multiple bullet-proof vests, crack cocaine and marijuana. When Quinn was arrested in 2011, a search of his home recovered crack cocaine and a firearm.
Ms. Rohde extended her grateful appreciation to the FBI, the NYPD, and the Richmond County District Attorney’s Office.
The government’s case is being prosecuted by Assistant United States Attorneys Allon Lifshitz and Richard M. Tucker.
The Defendant:
HARVEY CHRISTIAN
Age: 44
Staten Island, New York
E.D.N.Y. Docket No. 11 CR 425 (ENV)
Oceanside Man Indicted in Multi-Million-Dollar Fraud SchemeRead the Press Release
A six-count indictment was unsealed this morning in federal court in Central Islip, New York, charging John Quadrino, the owner/operator of Princess Cut Industries, Inc., Sassy Jewelry Buyers, Inc., and Golden Glitter Trading, Inc. (collectively referred to as the “Gold Purchasing Companies”). The defendant is charged with wire fraud and wire fraud conspiracy for orchestrating a Ponzi scheme over the course of more than five years utilizing the Gold Purchasing Companies. The defendant will be arraigned at the federal courthouse in Central Islip this afternoon before United States Magistrate Judge Arlene R. Lindsay.
The charges 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 (“FBI”), New York Field Office, and Madeline Singas, Nassau County District Attorney.
As set forth in the indictment, the charges against the defendant stem from a multi-year investigation by the United States Attorney’s Office, the FBI and the Nassau County District Attorney’s Office (“NCDAO”). The investigation revealed that the defendant represented to potential investors that the Gold Purchasing Companies were involved in the sale of gold, jewelry and diamonds to refineries and jewelers. The defendant asked investors to invest large sums of money for fixed periods of time in exchange for a guaranteed, fixed rate of return at the end of the agreed upon time period. Contrary to the representations made by the defendant to investors, the defendant never actually purchased gold, jewelry or diamonds in any significant quantities. Instead, he systematically engaged in a classic Ponzi scheme over the course of five years, returning investor principal and interest from the investor capital of other victims. As a result, more than 80 investors invested approximately $13.1 million with the Gold Purchasing Companies and suffered total losses of approximately $6.3 million. The defendant used investor capital to, among other things, issue checks to himself and to pay for his personal gambling expenses.
“As alleged, the defendant deceived investors with the promise of purchases of gold and other valuables and guaranteed returns, leading to his own enrichment and victim losses of over $6 million,” stated Acting United States Attorney Rohde. “We will not permit such conduct to go unanswered.” Ms. Rohde expressed her appreciation to the FBI and NCDAO for their assistance during the course of this multi-year investigation.
“As alleged, rather than carrying out his plan as promised, Quadrino dangled a shiny prospect in front of his victims while funneling their money into a scheme to defraud others and enrich himself,” said FBI Assistant Director-in-Charge Sweeney, Jr. “People know there's risk involved in investing, but they shouldn't have to start out with the odds stacked against them. Along with our partners, we remind the public how seriously we take offenses of this nature.”
“This defendant is accused of pilfering the savings of dozens of innocent investors by promising them great returns, but instead he allegedly gambled their money away,” DA Singas said. “Fortunately, working with our law enforcement partners at the Eastern District of the U.S. Attorney’s Office and the FBI, we were able to end this alleged Ponzi scheme before more investors were victimized.”
The charges in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty. If convicted of the offense, the defendant faces a maximum sentence of 20 years’ imprisonment per count.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorney Mark E. Misorek is in charge of the prosecution with assistance provided by Special Assistant United States Attorney Matthew Sotirhos of the Nassau County District Attorney’s Office.
The Defendant:
JOHN QUADRINO
Age: 51
Oceanside, New York
E.D.N.Y. Docket No. 17-CR-153 (DRH)
NYC Human Resources Administration Employee Charged with Inside Scheme to Steal Public BenefitsRead the Press Release
A complaint was unsealed today in United States District Court for the Eastern District of New York charging Mahalia Abraham, an employee of New York City Human Resources Administration’s Office of Research and Program Monitoring, and William Hopkins, with stealing approximately $59,000 in benefits earmarked for the Supplemental Nutrition Assistance Program (“SNAP”) and Temporary Aid to Needy Families Program (“TANF”), which are funded by federal tax dollars. The defendants will be arraigned this afternoon at the federal courthouse in Brooklyn this afternoon before United States Magistrate Judge Vera M. Scanlon.
The charges were announced by Bridget M. Rohde, Acting United States Attorney for the Eastern District of New York, and Mark G. Peters, Commissioner of the New York City Department of Investigation (“DOI”).
As set forth in the complaint and other publicly filed documents, the charges against the defendants stem from an investigation that began when one SNAP recipient noticed $56 worth of benefits had been withdrawn from her SNAP electronic benefits transfer card (“EBT”) without her permission. The investigation revealed that Abraham had accessed more than 100 SNAP and TANF recipients’ files to check their account balances and access their EBT account numbers as well as the names, dates of birth, and social security numbers of the intended recipients. Abraham passed this information on to her boyfriend, Hopkins, who used this information to change the PIN numbers on their victims’ cards. Hopkins then keyed in the victims’ EBT card numbers and new PIN numbers at Rite Aid stores throughout Brooklyn in order to withdraw cash and purchase baby formula, which he sold to bodegas for cash. In total, the defendants Abraham and Hopkins stole approximately $53,000 in SNAP benefits and $6,000 in TANF benefits.
“As alleged, the defendants used Mahalia Abraham’s position as an HRA employee to access the personal information of public assistance recipients, and to steal tens of thousands of dollars earmarked for needy New Yorkers,” stated Acting United States Attorney Rohde. “This type of behavior directly contradicts what it means to be a public servant and will not be tolerated.” Ms. Rohde expressed her appreciation to DOI’s Office of the Inspector General for its assistance during the course of this year-long investigation.
“This case began with a complaint from a recipient who noticed $56 in SNAP benefits missing from her account and ultimately led DOI to uncover tens of thousands of dollars in fraud, according to the charges. Though this defendant and her associate stole government funds, their victims were vulnerable New Yorkers – like one recipient left to stand on soup kitchen lines while his benefits were diverted to feed their greed. DOI’s report released today details how this fraud was committed, and the steps that HRA should take to ensure these funds are safeguarded for the people who need them. DOI thanks the United States Attorney’s Office for the Eastern District of New York for its partnership on this investigation and HRA for its continued cooperation to enact meaningful reforms to tackle fraud,” stated DOI Commissioner Peters.
In conjunction with today’s arrests, DOI issued a report detailing the investigation’s findings and providing recommendations to HRA and other government entities aimed at safeguarding public assistance recipients’ personal data. A copy of the Report can be found at the following link: http://www1.nyc.gov/site/doi/newsroom/public-reports.page
The charges in the complaint are allegations, and the defendants are presumed innocent unless and until proven guilty. If convicted of the offense, the defendants face a maximum sentence of 10 years’ imprisonment.
The government’s case is being handled by the Office’s General Crimes Section. Assistant United States Attorney Kaitlin T. Farrell is in charge of the prosecution.
The Defendants:
MAHALIA ABRAHAM
Age: 38
Brooklyn, New York
WILLIAM HOPKINS
Age: 41
Brooklyn, New York
E.D.N.Y. Docket No. 17-MJ-282
Member of Bloods Gang Sentenced to 101 Months in Prison for Drug Trafficking and Firearms OffensesRead the Press Release
Earlier today, Justin Smith, a Bloods gang member, was sentenced to 101 months imprisonment by United States District Judge I. Leo Glasser for his role in leading an illegal drug distribution operation in Brooklyn and carrying multiple firearms to further his drug distribution activities.
The sentence was announced by 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).
“Justin Smith, a gang member and convicted drug dealer who regularly kept and carried illegal firearms to protect his criminal organization, used an apartment in Wyckoff Gardens as a base of operations to sell crack and heroin, putting the residents of that community at great risk. This office, together with its law enforcement partners, will work tirelessly to address this type of dangerous conduct,” stated Acting United States Attorney Rohde. Ms. Rohde extended her grateful appreciation to the FBI and thanked the New York City Police Department (NYPD) for their assistance on the investigation.
The defendant was sentenced following his conviction after a guilty plea on October 28, 2016 to multiple counts of illegal drug distribution and firearm offenses, including possession of a firearm in furtherance of drug trafficking. Between September 2013 and April 2015, the defendant conspired to possess and distribute illegal narcotics in and around two New York City Housing Authority (NYCHA) housing developments known as the Gowanus Houses and Wyckoff Gardens, located in the Boerum Hill neighborhood in Brooklyn, New York.
On or about June 18, 2014, NYPD officers entered Smith’s stash house at 185 Nevins Street in Brooklyn, and discovered him with illegal drugs, ammunition, and a firearm. The officers recovered: 80 plastic bags containing crack cocaine, 51 glassine envelopes containing heroin and two containing a mixture of heroin and cocaine, 1,250 small plastic bags used to package crack cocaine for distribution, 212 empty glassine envelopes used to package heroin for distribution, $1,018 in cash, and a digital kitchen scale used to weigh narcotics. Additionally, they recovered nine rounds of .45 caliber ammunition, a box containing 31 rounds of 9mm ammunition, and a stolen black 9mm caliber semiautomatic handgun. The evidence also established that the defendant possessed crack and heroin, as well as firearms, on multiple other occasions in and around Brooklyn.
The government’s case is being handled by the Office’s Narcotics and Money Laundering Section. Assistant United States Attorneys Craig R. Heeren and Michael P. Robotti are in charge of the prosecution.
The Defendant:
JUSTIN SMITH
Age: 23
Brooklyn, New YorkE.D.N.Y Docket No. 15-CR-466 (ILG)
Husband and Wife Defendants Convicted of Mortgage Fraud and Medicaid FraudRead the Press Release
Earlier this afternoon, defendants Joseph Atias and Sofia Atias were convicted of bank fraud, conspiracy to commit bank fraud and Medicaid fraud by a jury in federal court in Central Islip. The fraud was designed to, and did, defraud Bank of America of over half a million dollars. The defendants face penalties of up to 35 years’ imprisonment, the forfeiture of $560,000, and restitution of over $700,000. After the verdicts, Joseph Atias was remanded to custody pending sentencing by United States District Judge Denis R. Hurley.
The convictions were announced by 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.
“Through a web of lies and false documentation, these defendants stole more than half a million dollars from Bank of America and from Medicaid, which they used to line their own pockets,” stated Acting United States Attorney Rohde. “The fine work of the FBI to bring these defendants to account for these crimes sends a clear message to anyone who contemplates engaging in mortgage fraud or Medicaid fraud: Do not even attempt it, because you will be caught and held responsible.” Ms. Rohde extended her grateful appreciation to the Federal Bureau of Investigation, the agency responsible for leading the government’s investigation.
The defendants were convicted of bank fraud and conspiracy to commit bank fraud in connection with the sale of property adjacent to Sacred Heart Academy for $925,000, after the defendants had sold the property in a short sale for $480,000 to discharge their mortgage debt. In the short sale process, the defendants and a co-conspirator, an attorney who pleaded guilty and testified against the defendants at trial, concealed the offer from Sacred Heart Academy from the Bank of America. In the short sale process, the defendants submitted a fraudulent contract of sale and other documents with false statements to Bank of America, and obtained approval of a short sale, wherein the proceeds from the sale of the property were less than the total amount of the mortgages on the property. The defendants submitted these documents to Bank of America, falsely representing that there were no funds to pay the mortgages when, in fact, the defendants knew that Sacred Heart Academy, a high school in Hempstead, New York, had offered to buy the property for an amount sufficient to cover the mortgages on the property. To accomplish the fraudulent short sale scheme, the defendants used a relative as a straw buyer of the property to create the appearance of an arms-length sale. Shortly after that sale, the defendant’s straw buyer sold the property to Sacred Heart Academy for approximately half a million dollars in profit.
Regarding the Medicaid fraud count conviction, the jury found the defendants guilty of theft of government funds in connection with their receipt of hundreds of thousands of dollars in Medicaid funds from 2009-2015. The defendants concealed their self-employment from Medicaid, as well as their available cash resources, including trust fund monies, an inheritance and the $465,000 in proceeds from the above bank fraud, in order to continue on Medicaid, which paid the defendants approximately $2,500 per month.
The government’s case was prosecuted by Assistant United States Attorneys Charles P. Kelly and Burton T. Ryan, Jr. of the Office’s Long Island Criminal Division.
The Defendants:
Name: SOFIA ATIAS
Age: 47 years oldResidence: Great Neck, NY
Name: JOSEPH ATIAS
Age: 52 years oldResidence: Great Neck, NY
Ten Members and Associates of the Bonanno Crime Family Indicted for Racketeering and Related ChargesRead the Press Release
Earlier today, a 37-count indictment was unsealed in United States District Court for the Eastern District of New York charging 10 members and associates of the Bonanno organized crime family of La Cosa Nostra (the “Bonanno family”) with racketeering conspiracy, including predicate acts of murder conspiracy, attempted murder, extortion, illegal gambling, robbery conspiracy, arson conspiracy, narcotics distribution conspiracy and obstruction of justice conspiracy. The indictment relates to the defendants’ alleged criminal activities in Howard Beach, Queens, and elsewhere between January 1998 and March 2017.
The defendants -- Ronald “Ronnie G.” Giallanzo, an acting captain in the Bonanno family, Michael Padavona, Michael Palmaccio and Nicholas “Pudgie” Festa, soldiers in the Bonanno family, and Christopher “Bald Chris” Boothby, Evan “The Jew” Greenberg, Richard Heck, Michael Hintze, Robert “Chippy” or “Chip” Tanico, and Robert Pisani, associates of the Bonanno family -- were arrested earlier today and are scheduled to be arraigned this afternoon before Magistrate Judge Vera M. Scanlon in Brooklyn federal court. The case has been assigned to United States District Judge Dora L. Irizarry.
The charges were announced by 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 Division (FBI).
The indictment is the result of a long-term investigation, with evidence gathered through a variety of methods including wiretap recordings of the defendants, cooperating witnesses, government and public records, electronic evidence and visual surveillance, all of which revealed a pattern of violence and intimidation that the defendants employed to further their enterprise's economic interests.
“Today’s arrests reveal La Costra Nostra’s continued presence in the community. Through acts of violence, including murder conspiracy, loansharking, illegal gambling, robbery and other offenses, the defendants are alleged to have amassed a fortune in ill-gotten gains. With these arrests, the defendants will be held accountable for their wide-ranging and destructive conduct,” said Acting United States Attorney Rohde. Ms. Rohde thanked the Queens District Attorney's Office, New York City Police Department, United States Probation Department of the Eastern District of New York and the Social Security Administration, Office of the Inspector General, for their assistance on the investigation.
“The Mafia hasn’t stopped operating and the crimes these members are charged with today proves that. To put an end to their brand of violence and criminal behavior, the FBI/NYPD Joint Organized Crime Task Force will continue pursuing them with every tool we have. I’d like to commend the work of the agents and detectives who put much time and effort into this investigation,” said Assistant Director-in-Charge Sweeney.
Loansharking
As alleged in the indictment and detention memo, Giallanzo, an acting captain in the Bonanno family, conducted a lucrative loansharking operation in which he provided money to, among others, defendants Festa, Palmaccio, Padavona, Hintze and Heck to extend extortionate loans to, and collect from, numerous individuals. Even while incarcerated, Giallanzo kept watch over his illicit loansharking book, directing his associates to commit acts of violence to ensure that the customers paid the exorbitant weekly interest rate. At one point, Giallanzo had lent over $3 million in extortionate loans to customers. Padavona, a Bonanno soldier, also conducted his own loansharking business with defendants Greenberg and Tanico.
The indictment alleges multiple counts involving threats and acts of violence to collect debts owed to Giallanzo and his associates.
For instance, in May 2013, within one month of his release from prison, Giallanzo ordered an associate of the Bonanno family (“Associate-1”) to bring to him a loanshark customer who owed Giallanzo $250,000 but had not been making the required weekly interest payments. Giallanzo and Associate-1 placed the victim in Associate-1’s car and beat him until the customer soiled himself, while Giallanzo screamed, “Where’s the f-----g money?”
As another example, in June 2014, Greenberg described to a customer that he used acts of violence to collect payments. He said, “I get my s--t. I blow cars up. I f------g knock on people’s doors. I pull them out of their f------g house.” Greenberg went on to describe his assault of another victim who was late paying a debt. “I f-----g grabbed another kid walking out of his house. I was like, he was like, ‘What’s up?’ I say, ‘What’s up?’ I grabbed him by the ankles, I f------g went like this, his head hit the concrete.”
As a result of their illegal activities, including loansharking, illegal gambling, robbery, extortion and other offenses, the defendants earned over $26 million in illicit proceeds, which the indictment alleges will be subject to forfeiture if the defendants are convicted. In addition to the cash proceeds of the racketeering conduct, the indictment further alleges that the houses belonging to defendants Giallanzo, Padavona, Palmaccio and Festa, and one of Pisani’s businesses, are subject to forfeiture.
Murder Conspiracy/Attempted Murder
In addition to the extortion charges, the indictment charges Giallanzo and Padavona with participating in a plot to murder an individual in the summer of 2006. Giallanzo, who at the time was on pre-trial release for a previous case filed in this District, ordered the murder of the victim because, among other reasons, the victim had robbed members of Giallanzo’s crew. The dispute lasted several months, during which Giallanzo’s crew and the victim shot at each other on the streets of Howard Beach on several occasions.
Obstruction of Justice and Perjury
Padavona and Tanico are separately charged with conspiring and attempting to obstruct the federal grand jury proceeding into their criminal activities by coordinating false testimony by Tanico. According to wiretap evidence, in April 2014, after Tanico was subpoenaed, he contacted Bonanno soldier Padavona and solicited his help. Padavona then contacted Tanico’s attorney and arranged to meet to pay Tanico’s legal fees. The next day, Tanico lied in the grand jury, falsely claiming that he had not spoken with Padavona about the subpoena.
Possible Penalties
If convicted of the racketeering or loansharking offenses, the defendants face a maximum of 20 years in prison. If convicted of the obstruction of justice offenses, Padavona and Tanico face a maximum of 20 years in prison. If convicted of operating an illegal gambling business, Giallanzo, Boothby and Pisani face a maximum of 5 years in prison. If convicted of perjury, Tanico faces a maximum of 5 years in prison.
The government’s case is being prosecuted by the Office’s Organized Crime & Gangs Section. Assistant United States Attorneys Nicole Argentieri, Lindsay K. Gerdes, Keith D. Edelman and Alicyn L. Cooley are in charge of the prosecution, with assistance provided by Assistant United States Attorney Tanya Y. Hill of the Office’s Asset Forfeiture Unit.
The Defendants:
RONALD GIALLANZO
Age: 46Queens, NY
MICHAEL PADAVONA
Age: 48
Queens, NY
MICHAEL PALMACCIO
Age: 45
Queens, NY
NICHOLAS FESTA
Age: 36
Oceanside, NY
CHRISTOPHER BOOTHBY
Age: 37
Queens, NY
EVAN GREENBERG
Age: 45
Queens, NY
RICHARD HECK
Age: 45
Queens, NY
MICHAEL HINTZE
Age: 53
Queens, NY
ROBERT PISANI
Age: 44
Queens, NY
ROBERT TANICO
Age: 49
Queens, NY
E.D.N.Y. Docket No. 17-CR-155 (DLI
Former Brooklyn Assistant District Attorney Charged with Illegally Wiretapping Cellular TelephonesRead the Press Release
A two-count indictment was unsealed today in the United States District Court for the Eastern District of New York charging Tara Lenich, a former supervisory Assistant District Attorney with the Kings County District Attorney’s Office (KCDA), with illegally intercepting oral and electronic communications occurring over two cellular telephones. The defendant is scheduled to be arraigned before United States Magistrate Judge Vera M. Scanlon at the Brooklyn federal courthouse this afternoon.
The charges were announced by 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).
As alleged in the indictment, for nearly 16 months between approximately June 2015 and November 2016, Lenich created fraudulent judicial orders as part of her illegal wiretapping scheme. Specifically, she forged the signatures of multiple New York State judges onto the illicitly created judicial orders -- orders that purportedly authorized the KCDA to intercept communications occurring over 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 unlawfully obtain text messages relating to the two cellular telephones.
“Tara Lenich violated her duty to the public when she engaged in a long-running scheme to forge judicial documents in order to illegally wiretap telephones,” stated Acting United States Attorney Rohde. “Lenich’s prosecution reflects the Office’s commitment to protecting the public from the misuse of law enforcement tools, particularly by those entrusted to use those tools in accordance with the laws they have sworn to uphold.” In announcing the indictment, Ms. Rohde thanked the Kings County District Attorney’s Office for their cooperation.
“In this case, as alleged, Lenich's illegal wiretapping scheme demonstrates an abuse of power that won't be tolerated within our criminal justice system. Unfortunately, sometimes those close to the law stray far from the truth. As demonstrated today, however, everyone is expected to play by the rules; for this we'll make no exceptions,” stated Assistant Director-in-Charge Sweeney.
The charges in the indictment are merely allegations, and the defendant is presumed innocent unless and until proven guilty. If convicted, the defendant faces up to five years’ imprisonment on each count.
The government’s case is being prosecuted by the Office’s Public Integrity Section. Assistant United States Attorneys Robert Polemeni and Maria Cruz Melendez are in charge of the prosecution.
The Defendant:
TARA LENICH
Age: 41
New York, NYE.D.N.Y. Docket No. 17-CR-154
Long Island Mortgage Banker Sentenced to 150 Months Imprisonment for Orchestrating $30 Million Bank Fraud ConspiracyRead the Press Release
Earlier today, Aaron Wider, the former owner and Chief Executive Officer of the mortgage bank HTFC Corporation, was sentenced by United States District Judge Arthur D. Spatt to 150 months imprisonment. Following a four-week jury trial, Wider was convicted on January 25, 2016, of conspiracy to commit bank fraud for defrauding financial institutions out of over $30 million in mortgage proceeds. In addition, as part of the sentence the Court ordered Wider to pay $22,487,799 in forfeiture and restitution and, at the conclusion of his term of incarceration, serve five years’ supervised release.
The sentence was announced by 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. In announcing the sentence, Ms. Rohde extended her grateful appreciation to the Federal Bureau of Investigation, the New York State Department of Financial Services, and the Nassau County District Attorney’s Office for their work on this case.
“Aaron Wider perpetrated a massive mortgage fraud scheme, the effects of which are still felt to this day by financial institutions and homeowners,” stated Acting United States Attorney Rohde. “Today’s sentence sends a strong message that those who manipulate and abuse the lending process will be held accountable.”
“Wider’s scheme won him millions of dollars in profits and delivered a crushing blow to the financial institutions who became unwitting players in this game. But as we know, banks aren't the only victims in these types of fraud-for-profits scams. A compromised banking system, which threatens both the stability of our economy and the safety of our assets, is a risk to us all. Today's sentence is a reminder of our commitment to put an end to this type of crime,” stated FBI Assistant Director in Charge Sweeney.
Between 2003 and 2008, Wider operated HTFC, a New York State licensed mortgage bank in Garden City, New York, which issued residential mortgages to borrowers. HTFC did not possess assets to fund these loans, but relied on funding from other banks and financial institutions, known as “warehouse lenders.” The warehouse lenders, in turn, relied on Wider and HTFC to ensure that home buyers were financially able to pay the mortgages and that the market value of the homes fully collateralized the loans.
Instead, Wider and his co-defendants engineered a series of same-day sham transactions to artificially inflate the prices of homes. Specifically, they contracted to buy homes in Nassau and Suffolk counties from innocent sellers at market prices. They then submitted fraudulent loan applications and appraisals to the warehouse lenders that nearly doubled the true sales prices of the homes. The defendants also inflated their own personal assets, used straw purchasers and sham trust entities, and concealed significant liabilities to get loan approval, typically obtaining proceeds for 80 to 100-percent more than the actual value of the homes.
HTFC sold each of its mortgages in the secondary market. When HTFC’s mortgages went into foreclosure beginning in 2007 and 2008, the secondary market investors only then discovered that the actual value of the collateral was far less than the amount borrowed for each home.
As a result of this scheme, Wider was able to fraudulently obtain over $100 million in loan proceeds, causing over $30 million in losses to financial institutions.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorneys Artie McConnell and Allen Bode are in charge of the prosecution.
The Defendant:
AARON WIDER
Age: 50
Copiague, NY
E.D.N.Y. Docket No. 14-CR-221
Leader of Violent Albanian Extortion Crew Targeting Astoria Business Owners Sentenced to 57 Years in PrisonRead the Press Release
Earlier today, Redinel Dervishaj was sentenced before Judge Eric N. Vitaliano in U.S. District Court in Brooklyn, New York to 57 years and one day of imprisonment for three counts of Hobbs Act extortion conspiracy, three counts of attempted Hobbs Act extortion, three counts of threatening physical violence in furtherance of an extortion plan, and three counts of brandishing a firearm in connection with these crimes of violence. The charges relate to the defendant’s participation in three schemes to extort small business owners in Astoria, Queens. Dervishaj was convicted after a three-week trial in April 2016. Co-defendants Denis Nikolla and Besnik Llakatura, a police officer with the New York City Police Department at the time of the crimes, previously pled guilty. Nikolla was sentenced on March 10, 2017 to 18 years’ imprisonment. Llakatura is awaiting sentencing.
The sentence was 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, and James P. O’Neill, Commissioner, New York City Police Department.
According to court filings and evidence presented at trial, between May and November 2013, Dervishaj, Llakatura and Nikolla conspired and attempted to extort a Queens restaurant owner, demanding monthly payments in exchange for so-called “protection.” Shortly after the victim opened a restaurant in Astoria, Dervishaj demanded $4,000 per month because the victim had opened it in “our neighborhood.” The victim sought help from his friend Llakatura, at the time an NYPD officer in Staten Island. Unbeknownst to him, Llakatura was already conspiring with Dervishaj and Nikolla in the extortion. Llakatura actively discouraged the victim from reporting the extortion to the police and warned the victim that Dervishaj would hurt him. Llakatura added that Dervishaj had ties to dangerous Albanian organized crime figures, including his brother Plaurent Dervishaj, at the time Albania’s most wanted fugitive. When the victim failed to make the demanded payments, Nikolla – accompanied by Dervishaj – threatened him on a public street in Queens and chased him at gunpoint, ready to fire, before the victim managed to escape in his car. Shortly thereafter, Dervishaj called the victim and told him that he “got lucky this time.” Over the course of five months, each of the three defendants took turns collecting monthly extortion payments totaling $24,000.
Between April 2012 and November 2013, Dervishaj and Nikolla also conspired and attempted to extort a businessman who had opened a new nightclub in Astoria. Nikolla approached this victim with an extortion demand and told him that other businesses in the area were paying him for “protection.” After the victim refused to pay, Dervishaj and Nikolla confronted him at a bar in Queens. Nikolla took a gun from Dervishaj, stuck the gun in the victim’s ribs, and yelled that if he didn’t pay, Nikolla would go to his house and beat him in front of his wife and children, and then beat his wife and children. Dervishaj then gave the victim his phone number so he could make the demanded payments.
Finally, during 2013, Dervishaj, Nikolla, and Llakatura also conspired and attempted to extort a proprietor of two social clubs in Astoria. Accompanied by Dervishaj, Nikolla demanded payments of $1,000 per week, once again for “protection.” The victim refused to make the demanded payments and stopped going to his social clubs out of fear for his safety. Court-authorized wiretaps of the defendants’ telephones revealed that all three defendants worked together to locate the victim and force him to pay. In one instance, the defendants confronted a friend of the victim in an effort to find the victim and send him a message. Dervishaj violently assaulted the victim’s friend, punching him multiple times in the face, while a gun was held to the back of his head. The victim ultimately fled to a foreign country for a period of time to avoid the defendants’ extortionate threats, and later sold his social clubs.
The government’s case is being prosecuted by the Office’s Organized Crime & Gangs Section. Assistant United States Attorneys Nadia Shihata and Patrick Hein are in charge of the prosecution.
The Defendant:
REDINEL DERVISHAJ
Age: 40
Queens, New York
E.D.N.Y. Docket No. 13-CR-668 (ENV)
Long-Time Bonanno Crime Family Member Indicted for Arson; Six Others Indicted for Violent CrimesRead the Press Release
BROOKLYN, NY – Two indictments were unsealed this morning in federal court in the Eastern District of New York charging seven defendants variously with arson, bank robbery, Hobbs Act robberies and firearms offenses based, in part, on their participation in the criminal affairs of the Bonanno organized crime family of La Cosa Nostra (the Bonanno family).[1] The defendants – Vincent Asaro, John J. Gotti, Michael Guidici, Matthew Rullan, also known as “Fat Matt,” Christopher Boothby, also known as “Bald Chris,” Matthew Hattley, also known as “Mack,” and Darren Elliott – were arrested earlier today.
The seven defendants are scheduled to be arraigned this afternoon before United States Magistrate Judge Roanne L. Mann, at the United States Courthouse, 225 Cadman Plaza East, Brooklyn, New York. The cases have been assigned to United States District Judge Allyne R. Ross.
The charges and arrests were announced by 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).
“The defendants are charged with committing an assortment of violent crimes – arson to exact punishment for a perceived slight and robberies to unjustly enrich themselves. This Office and its partners will continue to vigilantly pursue such organized violence and stop it in its tracks,” said Acting United States Attorney Rohde. Ms. Rohde thanked the Queens District Attorney’s Office, the New York City Police Department (“NYPD”), and the Nassau County Police Department’s Major Case Bureau and Robbery Squad for their assistance in the investigations.
“A man well-known in organized crime circles allegedly got cut off in traffic, and exacted his revenge by sending his associates to allegedly torch the victim’s car. The FBI refuses to allow acts like arson, bank robbery and home invasions to be conducted as business as usual, as if it is just another day in the office. The FBI and our law enforcement partners will continue to aggressively go after those who refuse to follow the laws and prey upon the law-abiding public,” said FBI Assistant Director-in-Charge Sweeney.
Arson
As alleged in the government’s court filings, Asaro was inducted into the Bonanno family more than 30 years ago and has previously held the position of captain. 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 vehicle at a high rate of speed. Later, after obtaining the home address of the owner of the other vehicle, Asaro directed an associate of the Bonanno family (“Associate-1”) to set fire to that vehicle. Associate-1 then recruited Gotti and Rullan to help him carry out the arson.
As further alleged, 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 owner of the other vehicle. 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 vehicle had been towed to confirm that his order had been carried out.
Bank Robbery
Two weeks after the vehicle arson, Gotti, Rullan, and Guidici allegedly robbed the Maspeth Federal Savings and Loan Association. On April 18, 2012 at approximately 5:45 p.m., Guidici entered the bank and handed the teller a note demanding money and stating, among other things, “I HAVE A BOMB[.]” The teller placed $5,491 on the counter, which Guidici took. Guidici then joined Gotti and Rullan who were waiting outside the bank in a car. The three defendants then fled the scene together.
Home Invasion Robbery
Boothby, an associate of the Bonanno family, and Hattley are charged with robbing a residence in Queens on March 12, 2014. Boothby remained outside the home as a lookout while Hattley and another Bonanno associate (“Associate-2”) tied up the homeowner’s girlfriend (“Jane Doe”). The defendants then stole more than $50,000 in cash and hundreds of thousands of dollars’ worth of jewelry, including high-end designer watches and a Cartier ring from Jane Doe’s finger, among other items.
Jewelry Store Robbery and Attempts
Hattley and Elliott are charged with the gunpoint robbery of a jewelry store in Franklin Square, Long Island, making off with approximately $250,000 in merchandise, and the attempted robberies of two other jewelry stores, also in Franklin Square, between August 17, 2011 and May 5, 2012. The jewelry store owners were menaced with guns and tied up.
All of the defendants face a maximum sentence of 20 years’ imprisonment on the robbery, attempted robbery, arson and arson conspiracy charges. In addition, Asaro, Gotti and Rullan each face a mandatory minimum sentence of five years’ imprisonment if convicted of the arson-related charges and Hattley and Elliot face a mandatory minimum sentence of seven years’ imprisonment if convicted of the firearms charges.
The government’s case is being prosecuted by the Office’s Organized Crime & Gangs Section. Assistant United States Attorneys Nicole M. Argentieri, Lindsay K. Gerdes, Keith D. Edelman, and Alicyn L. Cooley are in charge of the prosecution.
The Defendants:
VINCENT ASARO
Age: 82
Queens, NY
JOHN J. GOTTI
Age: 23
Queens, NY
MICHAEL GUIDICI
Age: 22
Queens, NY
MATTHEW RULLAN, a.k.a. “Fat Matt”
Age: 26
Queens, NY
CHRISTOPHER BOOTHBY, a.k.a. “Bald Chris”
Age: 37
Queens, NY
DARREN ELLIOTT
Age: 30
Queens, NY
MATTHEW HATTLEY, a.k.a. “Mack”
Age: 26
Queens, NY
E.D.N.Y. Docket Nos. 17-CR-00127 (RRM) and 17-CR-00128 (ARR)
[1] The charges contained in the indictments are merely allegations, and the defendants are presumed innocent unless and until proven guilty.
Active Duty Member of U.S. Military Pleads Guilty to Stealing and Selling Military-Issued Night Vision TechnologyRead the Press Release
Earlier today, Zachary Sizemore, an active-duty service member of the United States Air Force, pleaded guilty to the sale without authority of night vision devices and components stolen from the Air Force. Today’s guilty plea took place before Magistrate Judge Peggy Kuo at the federal courthouse in Brooklyn.
On November 29, 2016, the defendant was arrested on the Wright-Patterson Air Force Base in Dayton, Ohio, where he is stationed. He appeared that afternoon at the U.S. Courthouse in Dayton, Ohio, and at the federal courthouse in Brooklyn on December 7, 2016.
The guilty plea was announced by Bridget M. Rohde, Acting United States Attorney for the Eastern District of New York; Leigh-Alistair Barzey, Special Agent-in-Charge for the Department of Defense, Defense Criminal Investigative Service (DCIS), and Angel M. Melendez, Special Agent-in-Charge for the U.S. Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI), New York.
According to court filings, between July 2013 and November 2016, Sizemore sold night vision devices that he stole from the United States military, including night vision goggles and mini-thermal monoculars. In addition, he created online postings for, and sold or attempted to sell, dozens of items described as night vision equipment or thermal equipment, among other military equipment. Of those postings, Sizemore sold at least 80 such items for approximately $86,000. To date, the DCIS has identified more than $130,000 in losses attributable to Sizemore’s theft.
Night vision devices acquired by the United States military, such as the items the defendant stole and sold, contain components made to military specifications. The military requires the items to be rendered useless for their intended purpose prior to leaving government control. United States military policies prohibit the private sale of fully functional military-issued night vision equipment.
When he is sentenced on June 29, 2017, Sizemore faces a maximum sentence of 10 years in prison.
The government’s case is being prosecuted by the Office’s General Crimes Section. Assistant United States Attorney Nomi D. Berenson is in charge of the prosecution and Assistant United States Attorney Tanisha R. Payne is in charge of the forfeiture.
The Defendant:
ZACHARY SIZEMORE
Age: 24
Dayton, Ohio
E.D.N.Y. Docket No. 17-CR-87 (SJ)
Former Chief Executive Officer and Chief Financial Officer of China Medical Technologies Charged in A $400 Million Securities Fraud SchemeRead the Press Release
BROOKLYN, NY – A three-count indictment was unsealed this afternoon in federal court in Brooklyn, New York, charging Xiaodong Wu, the founder, Chief Executive Officer and Chairman of the Board of Directors of China Medical Technologies, Inc. (China Medical), and Tak Yung Samson Tsang, also known as “Sam Tsang,” the Chief Financial Officer and a member of the Board of Directors of China Medical, with securities fraud, securities fraud conspiracy and wire fraud conspiracy.[1] Wu and Tsang are alleged to have defrauded China Medical’s noteholders and investors of more than $400 million through misrepresentations about the use of proceeds raised through two note offerings and by then stealing the invested funds by transferring them to entities controlled by, or affiliated with, Wu and Tsang. The defendants are fugitives.
The charges were announced by 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).
“As alleged, Xiaodong Wu and Samson Tsang deceived unsuspecting investors who thought they were investing in a NASDAQ-listed medical device company but whose investments were stolen and fraudulently transferred to entities in China controlled by Wu and Tsang. The defendants’ scheme defrauded the investing public of more than $400 million,” stated Acting United States Attorney Rohde. “Today’s indictment further demonstrates our commitment to protecting investors and to holding accountable those who seek to abuse the financial markets to enrich themselves.”
“As alleged, Wu and Tsang led their victims down a narrow path of deceit. They betrayed the trust of those who took them at their word, stole their money, and made off with more than $400 million. Whether you omit key facts or intentionally misrepresent the truth, defrauding investors is a crime you won’t get away with it,” stated FBI Assistant Director-in-Charge Sweeney.
As detailed in the indictment, between January 2005 and November 2012, Wu and Tsang, together with their co-conspirators, orchestrated a scheme to defraud China Medical’s noteholders and investors through material misrepresentations and omissions relating to, among other things, the use of approximately $426 million in investments and the subsequent transfer of these investments to entities controlled by, or affiliated with Wu and Tsang. China Medical issued three series of notes: (i) on or about November 21, 2006, $150 million of 3.5 percent convertible senior subordinated notes due 2011 (2011 Notes); (ii) on or about August 15, 2008, $276 million of 4 percent convertible senior notes due 2013 (2013 Notes); and (iii) on or about December 6, 2010, $150 million of 6.25 percent convertible senior notes due 2016 (2016 Notes).
Wu and Tsang represented in the offering memoranda for the 2013 Notes and 2016 Notes that they would use the proceeds for general corporate purposes, for the acquisitions of businesses, products and technologies and to repurchase outstanding convertible notes. Contrary to these representations, most of the money raised through the 2013 Notes and the 2016 Notes was eventually transferred by Wu and Tsang to entities controlled by Wu, Tsang and their co-conspirators. For example, between November 3, 2006 and December 4, 2008, approximately $303.75 million of the approximately $576 million that China Medical raised in its three note offerings was transferred to an entity that was owned by an associate of Wu and Tsang, and approximately $202 million was subsequently transferred to bank accounts controlled by Wu. Additionally, the intellectual property that was the subject of the note offerings was approximately 20 years old and off-patent, and any value it had was minimal.
To execute their fraudulent scheme, Wu and Tsang caused China Medical’s independent director and outside auditor to resign, stopped making public disclosures of material events affecting the value of its securities and stopped making interest payments on the notes. On August 31, 2012, China Medical filed for Chapter 15 bankruptcy protection in the Southern District of New York.
To date, $246.5 million of the 2013 Notes and $150 million of the 2016 Notes remain outstanding.* * *
The criminal case has been assigned to United States District Judge Kiyo A. Matsumoto. If convicted, each of the defendants faces a maximum sentence of 20 years’ imprisonment.
* * *
The government’s case is being prosecuted by the Office’s Business and Securities Fraud Section. Assistant United States Attorneys Lauren H. Elbert and Winston M. Paes are in charge of the prosecution, with assistance provided by Assistant United States Attorney Tanya Hill of the Office’s Civil Division.
The Defendants:
XIAODONG WU
Age: 59
Residence: PEOPLE’S REPUBLIC OF CHINA
TAK YUNG SAMSON TSANG, also known as “Sam Tsang”
Age: 46
Residence: PEOPLE’S REPUBLIC OF CHINA
E.D.N.Y. Docket no. 17-cr-144 (Kam)
[1] The charges announced today are allegations, and the defendants are presumed innocent unless and until proven guilty.
Long Island Portfolio Manager Pleads Guilty to Wire Fraud for Stealing More Than $440,000 from ClientsRead the Press Release
Earlier today, Patrick Morgan Schiro, a resident of Rockville Centre, New York, and the founder of Black Rock Morgan LLC (BRM), pleaded guilty to wire fraud for defrauding five investors of approximately $440,000. The guilty plea was entered before United States District Judge LeShann DeArcy Hall at the federal courthouse in Brooklyn, New York. As part of his plea agreement with the government, Schiro has agreed to make restitution to the victims of his fraud in an amount to be determined by the Court. When he is sentenced on August 2, 2017, Schiro faces up to twenty years in prison, as well as restitution, criminal forfeiture, and a fine.
The guilty plea was announced by 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.
According to court filings and facts presented at the plea hearing, Schiro incorporated BRM, a purported investment management business, in February 2014. From approximately July 2014 to October 2015, Schiro used false and misleading statements to induce five individuals to invest approximately $440,000 with BRM, and he concealed his prior federal conviction for securities fraud from at least four of them. For example, Schiro falsely told one investor that BRM had many clients, managed millions of dollars in assets, and had “a team of investment professionals with significant sector-specific expertise.” Once he had the funds, Schiro also deceived his investors by telling them that their investments were performing well. For example, Schiro told one investor that his investment of approximately $242,000 was valued at $711,000.
Contrary to these representations, Schiro only invested only a small amount of the funds and used a significant amount of the money on his personal expenses, including approximately $190,000 to pay one of his children’s university tuition. When investors asked for their money back, Schiro often ignored their requests or provided false or misleading excuses. For example, when one investor asked to redeem $250,000 from his account, Schiro caused an email to be sent to that investor stating that the request had been denied because: “Consistent with our AML [anti-money laundering] responsibilities and U.S. patriot act regulations wire transfer withdrawals and redemptions MUST and will ONLY be sent to the bank account associated with your BRM Account.” In fact, no such policies were in place to prevent the transfer requested by the investor.
The government’s case is being handled by the Office’s Business and Securities Fraud Section. Assistant United States Attorney David K. Kessler is in charge of the prosecution.
The Defendant:
PATRICK MORGAN SCHIRO
Age: 45
Rockville Centre, New York
E.D.N.Y. Docket No. 17-CR-130 (LDH)
Al Qaeda Operative Convicted of Multiple Terrorism Offenses Targeting Americans OverseasRead the Press Release
Today, a jury returned its verdict convicting al Qaeda operative Ibrahim Suleiman Adnan Adam Harun, 46, of multiple terrorism offenses including conspiracy to murder American military personnel in Afghanistan and conspiracy to bomb the U.S. embassy in Nigeria. Harun traveled to Afghanistan in the weeks before Sept. 11, 2001 where he joined al Qaeda, trained at al Qaeda training camps and participated in attacks on U.S. and Coalition troops in Afghanistan in which two American service members were killed and others were seriously wounded in 2003. Harun also received training in explosives from an al Qaeda weapons expert and traveled from Pakistan to Nigeria intending to attack U.S. government facilities there.
The guilty verdict was announced by Acting Assistant Attorney General Mary B. McCord for National Security, Acting U.S. Attorney Bridget M. Rohde 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.
“Harun is an al Qaeda operative who targeted U.S. personnel and diplomatic facilities across two continents. 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. Today’s guilty verdict ensures that the defendant will be held accountable for his acts of terrorism,” said Acting Assistant Attorney General McCord. “I want to thank the many agents, analysts, and prosecutors whose hard work and dedication made this result possible.”
“As demonstrated by this case, the United States will be tireless in its efforts to hold al-Qaeda members accountable when they target American citizens serving their country abroad. We are firmly committed to bringing such terrorists to justice,” said Acting U.S. Attorney Rohde. Ms. Rohde expressed her grateful appreciation to 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.
“We hope the verdict today shows the public the FBI New York JTTF and our law enforcement partners are still arresting, charging and trying operatives for al-Qaeda 15 years after 9/11 because we won’t give up the obligation to bring terrorists to justice,” said FBI Assistant Director in Charge Sweeney. “It should also prove to anyone who wishes to harm our country, we will not stop, and we will never forget.”
“Al Qaeda operative Ibrahim Suleiman Adnan Adam Harun pledged allegiance to a known terrorist organization, conspiring to kill coalition soldiers in Afghanistan and even bomb a U.S. embassy in Nigeria,” said Commissioner O’Neill. “Today’s conviction holds the defendant responsible for the terror he waged overseas. I am thankful to the detectives, agents, and more than 50 partner agencies on the Joint Terrorism Task Force here in Manhattan and to the prosecutors in the Eastern District of New York who continue bring rigorous terrorism cases in federal court.”
Harun, also known as “Spin Ghul,” “Abu Tamim,” “Esbin Gol,” “Isbungoul,” “Joseph Johnson” and “Mortala Mohamed Adam,” was convicted on all five counts presented to the jury, which include conspiracy to murder U.S. nationals; conspiracy to bomb a government facility; conspiracy to provide material support to a foreign terrorist organization, al Qaeda; providing and attempting to provide material support to al Qaeda; and use of explosives in connection with terrorist activities.
During the two-week trial, the government established that Harun, purportedly a citizen of Niger, traveled from Saudi Arabia to Afghanistan in late summer of 2001 to join a jihadist group. There, he moved into an al Qaeda guesthouse – a registration center for new al Qaeda recruits – where he was living on Sept. 11, 2001. Immediately after the September 11 terrorist attacks, al Qaeda military leaders sent Harun to training camps in Afghanistan, in anticipation of an American invasion. At these camps, he learned how to use weapons and explosives, met top al Qaeda leaders and received his “kunya” (nom de guerre) “Spin Ghul,” meaning the, “White Rose.” Harun then traveled to Waziristan in the Federally Administered Tribal Areas region of Pakistan, where he operated under Abdul Hadi al-Iraqi, one of bin Laden’s deputies who was al Qaeda’s top military commander in Afghanistan at that time.
On April 25, 2003, Harun and fellow al Qaeda jihadists ambushed a U.S. military patrol from Firebase Shkin. Harun fired machinegun rounds and threw grenades at American soldiers 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. Several other soldiers were seriously wounded. Harun was also wounded but escaped to Pakistan. A pocket-sized Koran recovered at the scene contained Harun’s fingerprints and a journal describing the attacks contained Harun’s alias.
While recovering from his wounds in Pakistan, Harun met with senior al Qaeda officials – including Abu Faraj al-Libi (Abu Faraj), then al Qaeda’s external operations chief – and expressed his desire to engage in acts of terror against U.S. interests outside of Afghanistan, specifically attacks similar to 1998 al Qaeda bombings of the U.S. embassies in Kenya and Tanzania. Harun also swore “bayat” – or formal allegiance – to bin Laden through bin Laden’s military commander Abdul Hadi.
In summer of 2003, Harun traveled from Pakistan to Nigeria, where he planned to bomb the U.S. Embassy. He 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 build up al Qaeda’s network in West Africa.
In 2004, Harun directed a co-conspirator to travel from Nigeria to deliver information and materials to al Qaeda leaders in Pakistan. After learning that the co-conspirator had been arrested in Pakistan, Harun fled Nigeria. At approximately the same time, the FBI obtained a hard drive containing a letter written from Harun’s al Qaeda handler to Harun, providing him with detailed instructions on how to attack Americans in Nigeria. The letter specifically instructed Harun to target Americans – whom he described as “the head of the snake” – at “locations where Americans congregate,” such as embassies, hotels and “places where they gather for fun.” The al Qaeda handler also instructed Harun to obtain one ton of explosives for the bombing operation in Nigeria.
Harun then traveled to Libya where he planned to surreptitiously enter Europe to carry out terrorist attacks against Western interests. In early 2005, however, he was arrested by Libyan authorities and held in custody until his release in June 2011. Subsequently, Harun was arrested on June 24, 2011 by Italian authorities.
Harun was indicted in the U.S. on Feb. 21, 2012, and the Italian Minister of Justice ordered his extradition on Sept. 14, 2012 to face the charges pending in the Eastern District of New York.
When sentenced by U.S. District Judge Brian M. Cogan on June 22, Harun faces a maximum sentence of life in prison. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes. If convicted of any offense, the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
The government’s case is being prosecuted by Assistant U.S. Attorneys Shreve Ariail, Melody Wells 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.
Al Qaeda Operative Convicted of Multiple Terrorism Offenses Targeting Americans OverseasRead the Press Release
Earlier today in United States District Court in Brooklyn, a jury returned its verdict convicting al-Qaeda operative Ibrahim Suleiman Adnan Adam Harun of multiple terrorism offenses including conspiracy to murder American military personnel in Afghanistan and conspiracy to bomb the U.S. Embassy in Nigeria. Harun traveled to Afghanistan in the weeks before September 11, 2001 where he joined al-Qaeda, trained at al-Qaeda training camps, and in 2003 participated in attacks on U.S. and Coalition troops in Afghanistan in which two American service members were killed and others were seriously wounded. Harun also received training in explosives from an al-Qaeda weapons expert and traveled from Pakistan to Nigeria intending to attack U.S. government facilities there.
The guilty verdict was announced by Bridget M. Rohde, Acting U.S. Attorney for the Eastern District of New York, Mary B. McCord, 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 O’Neill, Commissioner, New York City Police Department.
“As demonstrated by this case, the United States will be tireless in its efforts to hold al-Qaeda members accountable when they target American citizens serving their country abroad. We are firmly committed to bringing such terrorists to justice,” said Acting U.S. Attorney Rohde. Ms. Rohde expressed her grateful appreciation to 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.
“Harun is an al-Qaeda operative who targeted U.S. personnel and diplomatic facilities across two continents. 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. Today’s guilty verdict ensures that the defendant will be held accountable for his acts of terrorism,” said Acting Assistant Attorney General McCord. “I want to thank the many agents, analysts, and prosecutors whose hard work and dedication made this result possible.”
“We hope the verdict today shows the public the FBI New York JTTF and our law enforcement partners are still arresting, charging and trying operatives for al-Qaeda 15 years after 9/11 because we won’t give up the obligation to bring terrorists to justice. It should also prove to anyone who wishes to harm our country, we will not stop, and we will never forget,” said FBI Assistant Director-in-Charge Sweeney.
“Al-Qaeda operative Ibrahim Suleiman Adnan Adam Harun pledged allegiance to a known terrorist organization, conspiring to kill coalition soldiers in Afghanistan and even bomb a U.S. embassy in Nigeria,” said Police Commissioner O’Neill. “Today’s conviction holds the defendant responsible for the terror he waged overseas. I am thankful to the detectives, agents, and more than 50 partner agencies on the Joint Terrorism Task Force here in Manhattan and to the prosecutors in the Eastern District of New York who continue to bring rigorous terrorism cases in federal court.”
Harun, also known as “Spin Ghul,” was convicted of all five counts presented to the jury, which included conspiracy to murder U.S. nationals; conspiracy to bomb a U.S. government facility; conspiracy to provide material support to a foreign terrorist organization, al-Qaeda; providing and attempting to provide material support to al-Qaeda; and use of explosives in connection with a felony offense.
During the two-week trial, the government established that Harun, purportedly a citizen of Niger, traveled from Saudi Arabia to Afghanistan in late summer of 2001 to join a jihadist group. There, he moved into an al-Qaeda guesthouse – a registration center for new al-Qaeda recruits – where he was living on September 11, 2001. Immediately after the September 11 terrorist attacks, al-Qaeda military leaders sent Harun to training camps in Afghanistan, in anticipation of an American invasion. At these camps, he learned how to use weapons and explosives, and met top al-Qaeda leaders. Harun then traveled to Waziristan in the FATA region of Pakistan, where he operated under Abdul Hadi al-Iraqi, one of bin Laden’s deputies who was a senior al-Qaeda’s military commander at that time.
On April 25, 2003, Harun and fellow al-Qaeda jihadists ambushed a U.S. military patrol from Firebase Shkin. Harun fired machinegun rounds and threw grenades at American soldiers 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. Several other soldiers were seriously wounded. Harun was also wounded but escaped to Pakistan. A Koran recovered at the scene contained Harun’s fingerprints and a journal describing the attacks contained Harun’s alias.
While recovering from his wounds in Pakistan, Harun met with senior al-Qaeda officials – including Abu Faraj al-Libi (“Abu Faraj”), then al-Qaeda’s external operations chief. Harun expressed the desire to engage in acts of terror against U.S. interests outside Afghanistan, specifically attacks similar to the 1998 al-Qaeda bombings of the U.S. embassies in Kenya and Tanzania. Harun also swore “bayat” – or formal allegiance – to bin Laden through bin Laden’s military commander Abdul Hadi al Iraqi.
In the summer of 2003, Harun traveled from Pakistan to Nigeria, where he planned to bomb the U.S. Embassy in Abuja, Nigeria. He 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 build-up al-Qaeda’s network in West Africa.
In 2004, Harun directed a co-conspirator to travel from Nigeria to deliver information and materials to al-Qaeda leaders in Pakistan. After learning that the co-conspirator had been arrested in Pakistan, Harun fled Nigeria. At approximately the same time, the FBI obtained a hard drive containing a letter written from Harun’s al-Qaeda handler to Harun, providing him detailed instructions regarding how to attack Americans in Nigeria. The letter specifically instructed Harun to target Americans – whom he described as “the head of the snake” – at “locations where Americans congregate,” such as embassies, hotels and “places where they gather for fun.” The al-Qaeda handler also instructed Harun to obtain one ton of explosives for the bombing operation in Nigeria.
Harun then traveled to Libya from where he planned to surreptitiously enter Europe to carry out terrorist attacks against Western interests. In early 2005, however, he was arrested by Libyan authorities and held in custody until his release in June 2011. Subsequently, Harun was arrested on June 24, 2011 by Italian authorities.
Harun was indicted in the United States on February 21, 2012, and the Italian Minister of Justice ordered his extradition on September 14, 2012 to face the charges pending in the Eastern District of New York.
When sentenced by U.S. District Judge Brian M. Cogan on June 22, 2017, Harun faces a maximum sentence of life in prison.The government’s case is being 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, are in charge of the prosecution.
The Defendant:
IBRAHIM SULEIMAN ADNAN ADAM HARUN
Age: 46E.D.N.Y. Docket No. 12-CR-134
Former Global Law Firm Partner Convicted of Insider TradingRead the Press Release
Earlier today, following a week and a half trial, a federal jury in Brooklyn, New York, returned a guilty verdict against Robert Schulman, a former partner of a Richmond-based global law firm, for securities fraud and securities fraud conspiracy. The indictment charged crimes stemming from Schulman tipping off the executive of an investment advisory firm about the pending merger between Pfizer, Inc. and King Pharmaceuticals, Inc. that Schulman had learned of through his representation of King Pharmaceuticals. Schulman and his co-conspirators then used that material non-public information to engage in securities transactions ahead of the merger announcement that resulted in more than $400,000 in illegal profits.
When sentenced by United States District Judge Joan M. Azrack, the defendant faces a maximum sentence of 20 years’ imprisonment.
The verdict was announced by Bridget M. Rohde, Acting United States Attorney for the Eastern District of New York, and Philip Bartlett, Inspector-in-Charge, United States Postal Inspection Service, New York Division (USPIS).
Ms. Rohde thanked the USPIS for its hard work and dedication in leading the investigation and expressed her appreciation to the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority, Inc., Criminal Prosecution Assistance Group (FINRA CPAG) for their cooperation and assistance.
The government’s case is being prosecuted by Assistant United States Attorneys David Pitluck and Julia Nestor of the Office’s Business and Securities Fraud Section.
The Defendant:
ROBERT SCHULMAN
Age: 58
McLean, Virginia
E.D.N.Y. Docket No. 16-CR-442 (JMA)
Member of Violent Albanian Extortion Crew Targeting Astoria Business Owners Sentenced to 18 Years in PrisonRead the Press Release
Earlier today, Denis Nikolla was sentenced before Judge Eric N. Vitaliano in U.S. District Court in Brooklyn, New York to 18 years’ imprisonment, to be followed by five years’ supervised release, for two counts of Hobbs Act extortion conspiracy, one count of threatening physical violence in furtherance of an extortion plan, and one count of brandishing a firearm. The charges relate to the defendant’s participation in three schemes to extort small business owners in Astoria, Queens. Co-defendants Redinel Dervishaj and Besnik Llakatura are awaiting sentencing. Dervishaj was convicted after a three-week trial in April 2016, while Besnik Llakatura, a police officer with the New York City Police Department at the time of the crimes, previously pled guilty.
The sentence was announced by Robert L. Capers, 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 James P. O’Neill, Commissioner, New York City Police Department.
“The defendant and his partners used fear, intimidation, and threats of violence to demand payment from those who dared to open businesses on their so-called ‘turf’ of Astoria, Queens,” stated United States Attorney Capers. “When his victims refused to pay, the defendant and his partners escalated their efforts to secure payment, brazenly brandishing firearms at their victims. Today’s sentence sends a strong message that criminals who use extortion and violence to profit from others’ hard work in our community will be held accountable and punished.” Mr. Capers extended his grateful appreciation to the members of the Joint Organized Crime Task Force, which includes agents of the FBI and detectives of the NYPD, which led the investigation, as well as the NYPD’s Internal Affairs Division and the FBI’s Public Corruption squad for their cooperation and assistance in the investigation.
“The defendant and his partners in this case coerced an innocent restaurant owner into paying for so-called protective services by using fear and threats of physical violence. The thought that someone can claim an area in any community as their ‘turf’ is not only illegal, it’s beyond comprehension in a normal society. No one should fear a criminal threatening and extorting money from them because of the area where they chose to open a legal and legitimate business,” stated FBI Assistant Director-in-Charge Sweeney.
“Today’s sentence should deter others who believe they can use violence to extort their victims,” said Police Commissioner O’Neill. “My thanks to the prosecutors, detectives, and agents whose work on this investigation led to this sentence. The neighborhood of Astoria is safer today because of your hard work.”
According to prior court filings and evidence presented at the trial of co-defendant Redinel Dervishaj, between May and November 2013, Nikolla, Llakatura and Dervishaj conspired and attempted to extort a Queens restaurant owner, demanding monthly payments in exchange for so-called “protection.” Shortly after the victim opened a restaurant in Astoria, Dervishaj paid him a visit and demanded $4,000 per month because the victim had opened in “our neighborhood.” The restaurant owner sought help from his friend Llakatura, at the time an NYPD officer in Staten Island. However, unbeknownst to the victim, Llakatura was conspiring with Dervishaj and Nikolla in the extortion. Llakatura actively discouraged the restaurant owner from reporting the extortion to the police and warned the victim that Dervishaj and his associates would physically harm him if he did not pay. When the victim failed to make the demanded payments, Nikolla violently threatened him on a public street in Queens, pointing a semiautomatic handgun at the victim, ready to fire, before the victim managed to escape in his car. Over the course of five months, each of the three defendants took turns collecting monthly payments from the Astoria restaurant owner, ultimately extorting $24,000 from him.
Between April 2012 and November 2013, Nikolla and Dervishaj also conspired and attempted to extort the owner of two nightclubs after he opened a new nightclub in Astoria. Nikolla approached the owner with an extortion demand, indicating to the victim that other businesses in the area were paying him for so-called “protection.” After the owner refused to pay, Nikolla and Dervishaj confronted him at a bar in Queens, trapping him in an enclosed space near the entrance. Nikolla then retrieved a firearm from Dervishaj’s side, stuck the firearm in the victim’s ribs, while yelling at the victim that if he didn’t pay, Nikolla would go to his house and beat him up in front of his wife and children. If the victim then continued to refuse to pay, Nikolla said, he would then beat the wife and children up in front of him.
Finally, during 2013, Nikolla, Dervishaj and Llakatura also conspired and attempted to extort a proprietor of two social clubs in Astoria. Accompanied by Dervishaj, Nikolla demanded payments of $1,000 per week from the proprietor for so-called “protection.” The victim refused to make the demanded payments and ceased going to his social clubs out of fear for his safety. Court-authorized wiretaps of the defendants’ telephones revealed that all three defendants worked together to locate the victim and force him to pay. In one instance, the defendants confronted a friend of the victim, badly beat him and pulled a gun on him, in an effort to locate and send a message to the victim. The victim ultimately fled to a foreign country for a period of time to avoid the defendants’ extortionate threats, and sold his social clubs.
The government’s case is being prosecuted by Assistant United States Attorneys Nadia Shihata, Patrick Hein and Kristin Mace.
The Defendant:
DENIS NIKOLLA
Age: 36
Brooklyn, New York
E.D.N.Y. Docket No. 13-CR-668 (ENV)
Ukrainian National Arrested in Connection with Scheme to Illegally Export Rifle Scopes and Thermal Imaging EquipmentRead the Press Release
Earlier today, Volodymyr Nedoviz, a lawful permanent resident of the United States and citizen of Ukraine, was arrested on federal charges of illegally exporting controlled military technology from the United States to end-users in Ukraine. Federal agents also executed a search warrant at a Philadelphia, Pennsylvania location that was used in connection with Nedoviz’s illegal scheme.
Nedoviz is scheduled to make his initial appearance today at 2:00 p.m. at the United States Courthouse, 225 Cadman Plaza East, Brooklyn, New York, before United States Magistrate Judge Ramon E. Reyes, Jr.
The arrest and charges were announced by U.S. Attorney Robert L. Capers of the Eastern District of New York; Acting Assistant Attorney General for National Security Mary B. McCord; FBI Assistant Director in Charge William F. Sweeney, Jr., New York Field Office; Special Agent in Charge Angel M. Melendez, U.S. Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI) for New York; and Special Agent in Charge Jonathan Carson, U.S. Department of Commerce, Bureau of Industry and Security, Office of Export Enforcement, New York Field Office.
The complaint alleges that the defendant conspired with others located in both Ukraine and the United States to purchase export-controlled, military-grade equipment from sellers in the United States and to export that equipment to Ukraine without the required licenses. The devices obtained by the defendant and his co-conspirators included some of the most highly powerful and technologically sophisticated night vision rifle scopes and thermal imaging equipment available, including, among others, an Armasight Zeus-Pro 640 2-16x50 (60Hz) Thermal Imaging weapons sight, a FLIR Thermosight R-Series, Model RS64 60 mm 640x480 (30Hz) Rifle Scope, and a ATN X-Sight II 5-20x Smart Rifle Scope. In many cases, the devices purchased by the defendant and his co-conspirators retail for almost $9,000, and they are specifically marketed to military and law enforcement consumers.
As part of the conspiracy, in order to induce U.S.-based manufacturers and suppliers to sell them the export-controlled devices and to evade applicable controls, the defendant and his co-conspirators falsely purported to be United States citizens and concealed the fact they were exporters. The defendant and his co-conspirators also recruited, trained, and paid other U.S.-based individuals to export the controlled devices to Ukraine via various freight forwarding companies. Among other things, the defendant and his co-conspirators instructed the U.S.-based individuals to falsely describe the nature and value of the equipment they were attempting to export. In addition, to conceal their identities, as well as the true destination of the rifle scopes and thermal imaging equipment, the defendant and his co-conspirators instructed that the items be shipped using false names and addresses.
The export of military-grade rifle scopes and thermal imaging equipment requires a license from either the United States Department of State or the United States Department of Commerce. Both the Department of State and the Department of Commerce have placed restrictions on the export of items that they have 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.
“The defendant tried to circumvent laws that protect our national security by preventing specialized technologies from falling into the wrong hands,” said U.S. Attorney Capers. “Those who seek to evade the scrutiny of U.S. regulatory and law enforcement agencies by operating in the shadows present a danger to our national security and our allies abroad. We will continue to vigorously prosecute violations of our laws that help maintain the superiority of our armed forces on land, sea, and air.” Mr. Capers expressed his grateful appreciation to the FBI’s Joint Terrorism Task Force.
“Export controls on military technology and equipment are put in place so military-grade gear doesn’t end up in the wrong hands. As we alleged, Nedoviz colluded with co-conspirators to illegally purchase highly powerful, technologically sophisticated equipment intended for law enforcement and military and then export to Ukraine without the proper licenses. The FBI will continue to protect our national security assets as we work with our partners to prevent the exportation of restricted materials,” said Sweeney, FBI Assistant Director in Charge, New York Field Office.
“Nedoviz, a Ukrainian national, falsely pretended to be a citizen of the United States in order to purchase highly sensitive military grade equipment, that would later be illegally exported to Ukraine” said Melendez, Special Agent in Charge, Melendez of HSI New York. “These items including rifle scopes and thermal imaging equipment have strict export controls in order to make sure that our soldiers overseas never have to encounter them on the battlefield. It is a mission we at HSI take very seriously.”
“Today’s arrest demonstrates the Office of Export Enforcement's strong commitment to enforcing our nation's export control and public safety laws. We will continue to work with our law enforcement partners to keep the most sensitive goods out of the most dangerous hands,” said Special Agent in Charge Carson, U.S. Department of Commerce Bureau of Industry and Security, Office of Export Enforcement, New York Field Office.
If convicted of the charges, the defendant faces up to 20 years in prison and a $1 million fine.
The case is being handled by the Office’s National Security and Cybercrime Section. Assistant U.S. Attorneys Peter W. Baldwin and Michael Keilty are in charge of the prosecution, with assistance from Trial Attorney David Recker of the National Security Division’s Counterintelligence and Export Control Section.
The Defendant:
VOLODYMYR NEDOVIZ
Age: 32
Queens, New York
E.D.N.Y. Docket No. 17-M-208
Long Island Man Re-Sentenced to 135 Months in Prison for Defrauding Homeowners in Loan Modification SchemeRead the Press Release
Updated April 19, 2017
Earlier today, David Gotterup was re-sentenced at the federal courthouse in Brooklyn, New York, to 135 months in prison for leading a loan modification scheme that defrauded distressed homeowners. Gotterup pleaded guilty on June 16, 2016, to conspiring to commit wire, mail and bank fraud. In addition, as part of the sentence, the Court ordered Gotterup to pay $2,500,050 in forfeiture.[1]
The sentence was 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); David Montoya, Inspector General, U.S. Department of Housing and Urban Development (HUD); and Christy Goldsmith Romero, Special Inspector General for the Troubled Asset Relief Program (SIGTARP).
According to public filings, from 2008 to 2012, Gotterup and his co-conspirators made a series of false promises to convince more than a thousand distressed homeowners seeking relief through government mortgage modification programs to pay thousands of dollars each in advance fees to numerous companies owned or controlled by Gotterup, including Express Modifications, Express Home Solutions, True Credit Empire, LLC, Green Group Today, Inc., The Green Law Group, Inc., and JG Group. Among other things, Gotterup directed telemarketers and salespeople to lie to distressed homeowner victims by telling them that they were “preapproved” for loan modifications and that they were retaining a “law firm” and an “attorney” who would complete their mortgage relief applications and negotiate with the banks to modify the terms of their mortgages. Contrary to these representations, Gotterup and his co-conspirators did little or no work in connection with these fraudulently induced advanced fees. Gotterup was arrested in October 2015 and has been incarcerated since then.
Gotterup was originally sentenced to 15 years in prison on March 7, 2017. Today’s re-sentencing was held in response to Gotterup’s motion for reconsideration of his earlier sentence.
In announcing the sentence, Ms. Rohde extended her appreciation to the agencies that led the government’s investigation and thanked the U.S. Small Business Administration and the Staten Island District Attorney’s Office for its assistance in the case.
Today’s proceeding took place before United States District Judge Nicholas G. Garaufis.
* * *
The government’s case is being prosecuted by the Office’s Business and Securities Fraud Unit. Assistant United States Attorneys Sylvia Shweder and Bonni Perlin are in charge of the prosecution.
* * *
The Defendant:
DAVID GOTTERUP
Age: 37
Oceanside, NY
E.D.N.Y. Docket No. 15-CR-498 (NGG)
[1] Restitution pursuant to the Mandatory Victims Restitution Act will be determined at a later date.
Crips Gang Member Indicted for 2014 MurderRead the Press Release
Earlier today, a three-count indictment was unsealed in the United States District Court for the Eastern District of New York charging Tyvon Bannister, also known as “Turtle,” with Murder In-Aid-Of Racketeering, as well as related firearms charges, for the 2014 murder of Rayvon Henriques. The defendant, who faces a mandatory sentence of life imprisonment if convicted of the top charge, was arraigned this afternoon before United States Magistrate Judge Ramon E. Reyes, Jr.
The charges were announced by Robert L. Capers, 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).
“This indictment sends a message to all gang members in the Cypress Hills Houses and beyond – we will be relentless in our pursuit of violent gang members who have besieged communities like Cypress for far too long,” stated U.S. Attorney Capers. “My Office, along with our federal partners and the NYPD are committed to reducing shootings and saving lives through a coordinated effort to target the most violent offenders who are doing harm in our communities.”
“It’s hard to fathom what possesses someone to think violent acts promote their reputation, and killing someone is just another way of doing that. The criminal gangs that operate in areas of our community use violence as their calling card, and create an atmosphere of fear. The FBI and our law enforcement partners will do all we can to go after those who put so little value on human life,” stated FBI Assistant Director-in-Charge Sweeney.
“This long-term, coordinated investigation demonstrates the impact of precision policing: targeting those who engage in violence,” said Police Commissioner O'Neill. “The NYPD will not tolerate the East New York community being subjected to continued violence, as detailed in today's indictment. I commend the continued diligence of the detectives, agents, and prosecutors whose work resulted in today's charges.”
As detailed in the indictment and a detention memorandum filed by the government, Bannister is a member of the Cypress Gangsta Crips (CGC), a subset of the Crips street gang that is comprised of individuals residing in and around the Cypress Hills Houses, a large New York City Housing Authority complex in East New York, Brooklyn (Cypress). For years, Cypress has been besieged by gang- and drug-related violence arising largely from a long-standing feud between the CGC, who hail from the “Backside” section (buildings on Linden Avenue) and “Teamside” section of Cypress (buildings on the western end of Sutter Avenue and the northern end of Fountain Avenue), and the Bloods-affiliated gang members who reside in the “Frontside” section of Cypress (buildings on the eastern end of Sutter Avenue). CGC members and associates earn money by trafficking in drugs and firearms and committing robberies, and commit acts of violence to promote their reputation and to protect their enterprise.
On July 8, 2014, Bannister and another gang member allegedly shot and killed Henriques in front of a nightclub in East New York. Henriques, who was 26 years old at the time of his death, was targeted because of his association with the CGC’s chief rivals, the Bloods-affiliated gang members from the “Frontside” section of Cypress.
The indictment is the result of a long-term investigation initiated by the FBI, the NYPD, and the U.S. Attorney’s Office in 2015 in response to gang-related violence in and around Cypress. The investigation has resulted in charges against 21 defendants for drug trafficking, illegal weapons possession, robbery, and murder.
The charges announced today are merely allegations, and the defendant is presumed innocent unless and until proven guilty.
The government’s case is being prosecuted by the Office’s Organized Crime and Gangs Section. Assistant United States Attorneys Margaret E. Gandy, Andrey Spektor, and David Gopstein are in charge of the prosecution.
The Defendant:
TYVON BANNISTER
Age: 23
Brooklyn, New York
E.D.N.Y. Docket No. 17-CR-116 (BMC)
Long Island Man Arrested for Attempting to Provide Material Support to TerroristsRead the Press Release
A criminal complaint was unsealed today in federal court in the Eastern District of New York charging Elvis Redzepagic with attempting to provide material support and resources to the Islamic State of Iraq and al-Sham (ISIS) and the al-Nusrah Front, which have both been designated by the U.S. Secretary of State as foreign terrorist organizations. Redzepagic was arrested yesterday at his residence in Commack, New York, and his initial appearance is scheduled for this afternoon before United States Magistrate Judge Robert M. Levy at the United States Courthouse, 225 Cadman Plaza East, Brooklyn, New York.
The charges were announced by U.S. Attorney Robert L. Capers of the Eastern District of New York, Acting Assistant Attorney General for National Security Mary B. McCord, of the U.S. Department of Justice, Assistant Director in Charge William F. Sweeney, Jr. of the New York Field Office of the Federal Bureau of Investigation (FBI), and Special-Agent-in-Charge Angel M. Melendez, of HSI New York.
As set forth in court documents, Redzepagic is a 26-year old citizen of the United States. Over the last two years, Redzepagic twice traveled to the Middle East to attempt to join a foreign terrorist organization. Specifically, in 2015, Redzepagic communicated with an individual he believed to be the commander of a battalion in Syria and a member of ISIS or the al-Nusrah Front and made attempts to join him to engage in violent jihad. In July 2015, Redzepagic traveled to Turkey and made multiple attempts to cross the border into Syria to join his associate’s organization. Unable to enter Syria from Turkey, Redzepagic traveled to Jordan in August 2016, but was stopped and deported by Jordanian authorities. In Facebook messages from October 2015, Redzepagic explained that “jihad” is when “you fight for the sake of God” and “die for the sake of Allah,” and he explicitly stated that he traveled to Turkey to “perform Jihad and join Jabhat Al-Nusra.” In subsequent interviews with law enforcement, Redzepagic admitted that at the time he attempted to enter Syria from Turkey, he was prepared to strap a bomb to himself.
“This defendant made numerous attempts to travel to Syria to wage violent jihad,” stated United States Attorney Capers. “We will continue to track down and prosecute individuals like the defendant before they are able to become foreign fighters or harm the United States and its allies.” Mr. Capers extended his grateful appreciation to the FBI’s Joint Terrorism Task Force, which comprises a number of federal, state, and local agencies from the region. Mr. Capers also thanked the Suffolk County Police Department, Nassau County Police Department and the Port Authority Police Department for their assistance.
“According to the complaint, the defendant traveled overseas as part of his attempt to join and provide material support to designated foreign terrorist organizations that were engaged in fighting in Syria,” said Acting Assistant Attorney General McCord. “The National Security Division’s highest priority is countering terrorist threats. We will continue to work to stem the flow of foreign fighters abroad and bring to justice those who attempt to provide material support to designated foreign terrorist organizations.”
“As we alleged, Elvis Redzepagic was persistent in his efforts to travel overseas to ‘perform jihad’ as he said in social media posts. Traveling not once, but twice to the Middle East where he attempted to join ISIS or al-Nusrah Front in 2015 and 2016. Homegrown violent extremists, especially individuals who demonstrate determination like Redzepagic, are only mitigated through the joint efforts of local and federal law enforcement working together to protect our communities,” said Assistant Director-in-Charge Sweeney.
“Redzepagic, a U.S. citizen living in Long Island, made multiple attempts to join ISIS or al-Nusrah Front in Syria where he wanted to engage in violent jihad, which could have resulted in the death of countless individuals” said Special Agent in Charge, Melendez of HSI New York. “This arrest underscores the importance of cooperation between law enforcement agencies across the globe in identifying and bringing these extremists to justice before they are able to commit terrorist attacks.”
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 prosecuted by Assistant United States Attorneys Saritha Komatireddy and Artie McConnell, with assistance provided by Trial Attorney Dan E. Stigall of the National Security Division’s Justice Department’s Counterterrorism Section.
The Defendant:
ELVIS REDZEPAGIC
Age: 26
COMMACK, NY
E.D.N.Y. Docket No. 17-M-199
MS-13 Gang Members Indicted for 2016 Murders of Three Brentwood High School StudentsRead the Press Release
A 41-count second superseding indictment was unsealed today in federal court in Central Islip, which charges thirteen MS-13 members with racketeering, seven murders, attempted murders, assaults, obstruction of justice, arson, conspiracy to distribute marijuana, and related firearms and conspiracy charges. Four of those defendants were arrested earlier this morning and will be arraigned this afternoon before United States District Judge Joseph F. Bianco at the federal courthouse in Central Islip. Additionally, during the execution of a search warrant at the home of MS-13 leaders ALEXI SAENZ, also known as “Blasty” and “Big Homie,” and JAIRO SAENZ, also known as “Funny,” this morning, investigators recovered an arsenal of weapons, including a loaded 9mm semi-automatic handgun, numerous rounds of ammunition, including additional 9mm, .38 caliber, .357 caliber, and other assorted rounds, machetes, a sword, a hatchet, and knives. Further, investigators recovered a quantity of marijuana packaged for resale, ledgers, and MS-13 paraphernalia.
Among the offenses added in the second superseding indictment are murder charges against A. SAENZ, J. SAENZ, SELVIN CHAVEZ, also known as “Flash,” and ENRIQUE PORTILLO, also known as “Oso” and “Turkey,” in connection with the murders of Brentwood High School students Nisa Mickens and Kayla Cuevas, who were killed on September 13, 2016, and murder charges against ELMER ALEXANDER LOPEZ, also known as “Smiley,” “Little Smiley” and “Alex,” GERMAN CRUZ, also known as “Bad Boy,” and two other defendants, who are still fugitives at this time, relating to the murder of Jose Pena, who also attended Brentwood High School and was killed on June 3, 2016, but whose skeletonized remains were not recovered until October 17, 2016. Two other MS-13 members, who were juveniles at the time of the murders, have been charged with the Cuevas and Mickens murders, and a third juvenile MS-13 member has been charged with the Pena murder. By statute, those cases remain under seal at this time.
The charges were announced by Robert L. Capers, 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), Timothy D. Sini, Commissioner, Suffolk County Police Department (SCPD), and Thomas C. Krumpter, Acting Commissioner, Nassau County Police Department (NCPD).
“The brutal murders of Nisa Mickens and Kayla Cuevas, and the savage killing of Jose Pena, allegedly committed by these defendants, exemplify the depravity of a gang whose primary mission is murder,” stated United States Attorney Capers. “As the MS-13 continues its efforts to expand and entrench itself in our communities, both by sending gang members to illegally enter the United States from Central America, and by recruiting new members from our schools and neighborhoods, this Office and the FBI’s Long Island Gang Task Force will continue our mission to dismantle the MS-13 and free our neighborhoods from the terror they cause.” Mr. Capers expressed his grateful appreciation to all the members of the FBI’s Long Island Gang Task Force.
“Stamping out gangs and the violence they bring to our neighborhoods remains a top priority for the FBI. Since 2003, the FBI’s Long Island Gang Task Force has been combining the resources of our agents and detectives who, although they are from different agencies, work together in carrying out one mission: to protect the right to live in a society free from violence. Whether you live in Brentwood or the Hamptons, you have a right to safety and security in your neighborhood. That’s why we’re here today and it’s the reason we’re not going away,” stated FBI Assistant Director-in-Charge Sweeney.
“The day Nisa Mickens and Kayla Cuevas were heinously murdered, the Suffolk County Police Department made a commitment to their families and to the residents of Brentwood that justice would be served. Today, in collaboration with the FBI and the United States Attorney’s Office, we have delivered on that promise. We have also promised to eradicate MS-13 from our streets and we remain fully committed to finishing the job. We will continue to keep the pressure on this ruthless gang and anyone who associates with them, and we will spare no resource to accomplish our objective. I want to thank every member of the Suffolk County Police Department for their steadfast determination, commitment and professionalism on this investigation and a special thank you to our partners in the FBI and the U.S. Attorney’s Office for their outstanding work on this case,” stated SCPD Commissioner Sini.
“These recent arrests in a combined multi-jurisdictional law enforcement effort should be a prime example of how these heinous murders by gang members will not go unpunished. I would like to acknowledge the exceptional investigative work which led to the arrests of these defendants and express my sincere condolences to the victims and their families,” stated NCPD Acting Commissioner Krumpter.
The second superseding indictment adds charges against LOPEZ, who previously was charged with two attempted murders, CRUZ and two other defendants in connection with the June 3, 2016 murder of Jose Pena. As detailed in the second superseding indictment and the government’s detention letter, which was filed earlier today, the MS-13 decided to kill Pena, a member of the MS-13, because he was suspected of violating gang rules. Prior to the murder, LOPEZ, CRUZ and other members of the Freeport Locos Salvatruchas (FLS) clique of the MS-13 held meetings where they discussed punishing Pena for the rules violations. After consulting with gang leadership in El Salvador, the FLS members agreed to murder Pena, and tasks were assigned to each of the members of the clique to carry out the plan, including obtaining weapons and a vehicle to be used in the murder. On June 3, 2016, LOPEZ and several other FLS members lured Pena into a car that was provided by CRUZ. They drove Pena to a secluded wooded area in Brentwood, where they attacked him, taking turns stabbing and slashing him with knives.
As detailed in the second superseding indictment and the government’s detention letter, A. SAENZ, J. SAENZ, CHAVEZ, and PORTILLO are charged with the September 13, 2016 murders of Nisa Mickens and Kayla Cuevas. In the months leading up to the murders, Cuevas was involved in a series of disputes with members and associates of the MS-13. Approximately one week before the murders, these disputes escalated when Cuevas and several friends were involved in an altercation with MS-13 members at Brentwood High School. After that incident, the MS-13 members vowed to seek revenge against Cuevas. On the evening of September 13, 2016, CHAVEZ, A. SAENZ, J. SAENZ, PORTILLO, and other members of the Sailors Locos Salvatruchas Westside (Sailors) clique of the MS-13 agreed to hunt for rival gang members to kill. They separated into different vehicles and drove around Brentwood looking for targets. CHAVEZ, PORTILLO, and two other juvenile MS-13 members, who were riding together in one car, saw Cuevas and Mickens walking down Stahley Street. They recognized Cuevas and called A. SAENZ and J. SAENZ, the leaders of the Sailors clique, who authorized them to kill the two girls. CHAVEZ, the driver, pulled up close to the girls, then PORTILLO and the other MS-13 members jumped out of the car and attacked them with baseball bats and a machete, striking the girls numerous times in the head and body. After finishing the attack, PORTILLO and the others got back into the car and CHAVEZ drove them away. Mickens’s body, which was discovered on Stahley Street shortly thereafter, sustained significant sharp force trauma to the face and blunt force trauma to the head. Cuevas’s body, which was discovered the following day behind a house adjacent to where Mickens’s body was found, sustained significant blunt force trauma to the head and body and lacerations.
Further, CHAVEZ, PORTILLO, A. SAENZ, J. SAENZ, and JONATHAN HERNANDEZ are all charged with conspiracy to distribute marijuana. From April 2016 to the present, the defendants sold marijuana and used the proceeds to help finance the Sailors clique’s criminal operations. Specifically, the MS-13 members sold marijuana and used that money to purchase firearms and ammunition, as well as to send money to MS-13 leaders in El Salvador.
Finally, the second superseding indictment charges HERNANDEZ in connection with the October 7, 2015 assaults of a male and female that occurred on an athletic field located near the Brentwood East Elementary and Brentwood East Middle Schools. The two victims were there with a group of other individuals when HERNANDEZ and other members of the MS-13 approached and attacked them. The group ran away, except for the victims who were caught, knocked to the ground, and struck repeatedly with baseball bats and pipes. The male victim suffered a broken hand and deep lacerations to the face. The female victim suffered severe pain throughout her body where the weapons had struck her.
The underlying indictments in this case, filed on July 20, 2016 and November 15, 2016, charged defendants EDWIN AMAYA-SANCHEZ, also known as “Strong,” WILLIAM CASTELLANOS, also known as “Dizzy” and “Satanico,” JHONNY CONTRERAS, also known as “Muerte,” “Reaper” and “Conejo,” REYNALDO LOPEZ-ALVARADO, also known as “Mente,” and LOPEZ, who are all members of the MS-13, with four murders, including the May 26 and 28, 2013 murders of Derrick Mayes and Keenan Russell, the July 14, 2014 murder of Jose Lainez-Murcia, the June 30, 2015 murder of Jonathan Cardona-Hernandez, three attempted murders, as well as related firearms, accessory after the fact, obstruction of justice, and arson offenses.
This second superseding indictment is the latest in a series of federal prosecutions by the United States Attorney’s Office for the Eastern District of New York targeting members of the MS-13, a violent international criminal organization. The MS-13’s leadership is based in El Salvador and Honduras, but the gang has thousands of members across the United States, comprised primarily of immigrants from Central America. With numerous branches, or “cliques,” the MS-13 is the largest and most violent street gang on Long Island. Since 2003, hundreds of MS-13 members, including dozens of clique leaders, have been convicted on federal felony charges in the Eastern District of New York. A majority of those MS-13 members have been convicted on federal racketeering charges for participating in murders, attempted murders and assaults. Since 2010 alone, this Office has obtained indictments charging MS-13 members with carrying out more than 35 murders in the Eastern District of New York, and has convicted dozens of MS-13 leaders and members in connection with those murders. These prosecutions are the product of investigations led by the FBI’s Long Island Gang Task Force, comprising agents and officers of the FBI, SCPD, NCPD, Nassau County Sheriff’s Department, Suffolk County Probation, Suffolk County Sheriff’s Department, and Rockville Centre Police Department.
If convicted, all of the defendants charged in the second superseding indictment face up to life in prison or the death penalty, other than CRUZ, who faces up to 10 years in prison, and HERNANDEZ, who faces up to 20 years on each of the assault counts and an additional five years for the conspiracy to distribute marijuana. The charges in the second superseding indictment are merely allegations, and the defendants are presumed innocent unless and until proven guilty.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorneys John J. Durham, Raymond A. Tierney, and Paul G. Scotti are in charge of the prosecution.
The Defendants:
EDWIN AMAYA-SANCHEZ (“Strong”)
Age: 29
Brentwood, New York
WILLIAM CASTELLANOS (“Dizzy” and “Satanico”)
Age: 20
Central Islip, New York
SELVIN CHAVEZ (“Flash”)
Age: 19
Brentwood, New York
JHONNY CONTRERAS (“Muerte,” “Reaper” and “Conejo”)
Age: 23
Brentwood, New York
GERMAN CRUZ (“Bad Boy”)
Age: 18
Brentwood, New York
JONATHAN HERNANDEZ (“Travieso” and “Kraken”)
Age: 19
Brentwood, New York
ELMER ALEXANDER LOPEZ (“Smiley,” “Little Smiley” and “Alex”)
Age: 19
Central Islip, New York
REYNALDO LOPEZ-ALVARADO (“Mente”)
Age: 24
Brentwood, New York
ENRIQUE PORTILLO (“Oso” and “Turkey”)
Age: 19
Brentwood, New York
ALEXI SAENZ (“Blasty” and “Big Homie”)
Age: 22
Central Islip, New York
JAIRO SAENZ (“Funny”)
Age: 19
Central Islip, New York
E.D.N.Y. Docket No. 16-CR-403 (S-2)(JFB)
Los Angeles Investment Adviser Pleads Guilty to Investment Adviser Fraud for Stealing More Than $1.5 Million from ClientsRead the Press Release
BROOKLYN, NY – Earlier today, Marc Broidy, the founder, Principal and Chief Executive Officer of Broidy Wealth Advisors, LLC, pleaded guilty to investment adviser fraud for defrauding his clients by withdrawing $640,000 in excess management fees, and misappropriating more than $865,000 worth of stock held in trusts, over which he was trustee. The guilty plea was entered before United States District Judge Eric N. Vitaliano at the federal courthouse in Brooklyn, New York. As part of his plea agreement with the government, Broidy has agreed to make restitution to the victims of his fraud. When he is sentenced, Broidy faces up to five years in prison, as well as restitution, criminal forfeiture and a fine.
The guilty plea was announced by Robert L. Capers, 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. Mr. Capers thanked the Securities and Exchange Commission for their cooperation and assistance in the investigation.
According to court filings and facts presented at the plea hearing, from approximately November 2010 to July 2016, Broidy had discretionary authority to buy and sell securities in brokerage accounts he set up for his clients and was permitted to deduct management fees from those accounts as compensation. For three of his clients, instead of deducting the amounts he was permitted to bill, Broidy took more than $640,000 in excess fees. To hide his theft, Broidy falsified many of those clients’ Internal Revenue Service Form 1099s so that the forms reflected far less in management fees than Broidy actually took.
One client discovered the theft and forced Broidy to repay the stolen fees in a settlement. To pay the settlement and other personal expenses, such as credit card bills and house and car payments, Broidy sold more than $865,000 worth of stock held in trust accounts that another client had established for his children, and for which he had appointed Broidy trustee. Broidy also encouraged several clients to invest in startup companies that had agreed to pay Broidy a percentage of any money Broidy raised for the companies, but did not disclose his arrangement to his clients.* * *
The government’s case is being handled by the Office’s Business and Securities Fraud Section. Assistant United States Attorney Matthew Amatruda is in charge of the prosecution.
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The Defendant:
MARC BROIDY
Age: 43
Los Angeles, California
E.D.N.Y. Docket No. 17-CR-064 (ENV)
Six Defendants with Gang Ties Charged as Additional Members of an Interstate Gun Trafficking OperationRead the Press Release
A third superseding indictment was unsealed today in United States District Court in Brooklyn charging Richard Almarez, also known as “Rated R,” Terrell Brown, also known as “Rellz,” Tislam Cato, also known as “Vietnam,” Shaheem Evans, also known as “Sha,” Joseph Isar Ras, also known as “Bada Boom,” and Elvin Sanabria, also known as “Rico,” as members of a conspiracy to deal in firearms, along with six other defendants who were previously charged. The indictment was returned under seal by a federal grand jury on February 23, 2017, and relates to the defendants’ alleged participation in a gun-trafficking operation that was responsible for transporting more than 70 firearms from Georgia to New York between October 2015 and June 2016. At least seven of the firearms that were illegally acquired and distributed by the operation have been recovered by law enforcement officers in the New York area.
The charges were announced by Robert L. Capers, 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 James O’Neill, Commissioner, New York City Police Department.
The gun-trafficking operation was run by members and associates of the Gangsta Killa Bloods (GKB), a set of the Bloods street gang, who relied on “straw buyers” (individuals who were lawfully able to purchase firearms) to purchase firearms in Georgia that were then transported to New York, where the newly charged defendants illegally sold them to criminal associates for profit.
Previously, on June 16, 2016, a grand jury in the Eastern District of New York returned an indictment in this case charging straw buyers Micah Isaiah Desuze, Dominique Chanel Fairnot, Jeremy Sanchez, Ashanti Sease-Matthews, and Omar Jermaine Walker with conspiracy to deal in firearms and to make false statements to acquire firearms, as well as substantive counts of making false statements to acquire firearms. The government’s investigation revealed that the straw buyers, several of whom were current or former members of the United States military, lied on Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Forms 4473 by certifying that they were not purchasing the firearms on behalf of other people.
On June 22, 2016, a superseding indictment was filed charging the same straw purchasers and Marquez Bridges, also known as “Tega,” an Atlanta-based GKB member and gun-trafficking facilitator, with conspiracy to deal in firearms and to make false statements to acquire firearms. On November 22, 2016, a second superseding indictment was filed charging the previously-charged defendants (with the exception of Fairnot, who pled guilty before the second superseding indictment was filed) and Bonnay Benford, also known as “Popalot,” a New York-based GKB member and gun trafficking facilitator, with conspiracy to deal in firearms and to make false statements to acquire firearms.
For their role as gun distributors in the gun-trafficking operation, the six newly charged defendants face a maximum sentence of five years’ imprisonment for conspiring to deal in firearms, the sole count with which they are charged in the third superseding indictment. The defendants who acted as straw buyers face maximum sentences of five years’ imprisonment on each of the two conspiracy counts, and maximum sentences of ten years’ imprisonment on each of the substantive counts of making a false statement to acquire firearms with which they are charged. The charges in the indictment 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 Attorneys Rena Paul and Margaret E. Gandy.
The Defendants:
RICHARD ALMAREZ
Age: 42
Westchester, New York
BONNAY BENFORD
Age: 30
Brooklyn, New York
MARQUEZ BRIDGES
Age: 26
Atlanta, Georgia
TERRELL BROWN
Age: 34
Miami, Florida
TISLAM CATO
Age: 35
Brooklyn, New York
MICAH ISAIAH DESUZE
Age: 25
Atlanta, Georgia
SHAHEEM EVANS
Age: 41
Bronx, New York
JOSEPH ISAR RAS
Age: 35
Brooklyn, New York
ELVIN SANABRIA
Age: 29
Englewood, New Jersey
JEREMY SANCHEZ
Age: 27
Lancaster, Pennsylvania
ASHANTI SEASE-MATTHEWS
Age: 23
Atlanta, Georgia
OMAR JERMAINE WALKER
Age: 29
Savannah, Georgia
E.D.N.Y. Docket No. 16-CR-326 (ARR)
Former Registered Broker Pleads Guilty to Securities Fraud Conspiracy for Participating in A $131 Million Market Manipulation SchemeRead the Press Release
BROOKLYN, NY – Earlier today, Christopher F. Castaldo, a former registered broker who was the owner of two subscription-based investment research firms, pleaded guilty to conspiracy to commit securities fraud in connection with the fraudulent market manipulation of ForceField Energy Inc. (ForceField), a publicly-traded company listed on the NASDAQ under the ticker symbol “FNRG.” The guilty plea was entered before United States Magistrate Judge Ramon E. Reyes, Jr. at the federal courthouse in Brooklyn, New York. When sentenced, Castaldo faces up to five years in prison, as well as restitution, criminal forfeiture, and a fine.
The guilty plea was announced by Robert L. Capers, 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. Mr. Capers thanked the Securities and Exchange Commission, New York Regional Office, for their cooperation and assistance in the investigation.
According to court filings and facts presented at the plea hearing, between January 2009 and April 2015, the defendant, together with others, engaged in a scheme to defraud investors in ForceField, a purported worldwide distributor and provider of LED lighting products and solutions, by artificially controlling the price and volume of traded shares of ForceField through, among other means: (1) using nominees to purchase and sell ForceField stock without disclosing this information to investors and potential investors; (2) orchestrating the trading of ForceField stock to create the appearance of genuine trading volume and interest in the stock; and (3) concealing payments to stock promoters and broker dealers who promoted and sold ForceField stock to investors and potential investors while claiming to be independent of the company. The defendants’ fraudulent scheme caused a loss of approximately $131 million to the investing public.
Between June 2011 and June 2014, Castaldo received commission payments, or kickbacks, in cash and in ForceField stock, from a ForceField executive for promoting the purchase of ForceField stock to investors, including by contacting subscribers who paid to receive independent investment research from Castaldo’s companies. Castaldo and employees working at his direction did not disclose his compensation arrangement while soliciting his paid subscribers to purchase ForceField’s stock. In addition, during some of the periods in which Castaldo was promoting the purchase of ForceField’s stock to his subscribers, Castaldo was actively selling ForceField stock he had received. Castaldo did not disclose this to the subscribers who were being solicited to purchase ForceField stock.
* * *
The government’s case is being prosecuted by the Office’s Business and Securities Fraud Section. Assistant United States Attorneys Mark E. Bini and Lauren H. Elbert are in charge of the prosecution.
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The Defendant:
CHRISTOPHER F. CASTALDO
Age: 45
Residence: Glen Head, New York
E.D.N.Y. Docket No. 16-CR-234 (S-1) (BMC)
Exporter of Microelectronics to Russian Military Sentenced to 135 Months in Prison Following Convictions on All CountsRead the Press Release
Alexander Posobilov, 62, of Houston, Texas, was sentenced to 135 months in prison for conspiring to export and illegally exporting controlled microelectronics to Russia, and for conspiring to launder money.
The sentence was announced by Acting Assistant Attorney General for National Security Mary B. McCord and U.S Attorney Robert L. Capers for the Eastern District of New York. The sentencing took place before Senior U.S. District Judge Sterling Johnson, Jr.
“With this sentence, Alexander Posobilov is being held accountable for evading export laws and illegally exporting American microelectronics to Russia for military use,” said Acting Assistant Attorney General McCord. “Export laws exist as an important part of our national security framework and protecting national assets from ending up in the hands of our potential adversaries is one of our highest priorities.”
“Posobilov helped lead a criminal operation that through lies and subterfuge profited handsomely from the unlawful sale and export of sophisticated American microelectronics for use by the Russian military,” stated U.S. Attorney Capers. “Today’s sentence shows that those who compromise the national security of the United States for their personal financial gain will face serious punishment.” Mr. Capers extended his grateful appreciation to the FBI’s Houston Field Office and the Department of Commerce for their leading roles in the investigation.
Posobilov, as well as ten other individuals and two corporations – ARC Electronics, Inc. (ARC) and Apex System, L.L.C. (Apex) – were indicted in October 2012. Posobilov and two co-conspirators were subsequently convicted at trial on all counts in October 2015. Of the remaining defendants, five pleaded guilty and three remain at large. ARC is now defunct, and Apex, a Russian-based procurement firm, failed to appear in court.
Posobilov joined ARC in 2004, where he ascended to become the procurement manager and day-to-day director of the company. Between approximately October 2008 and October 2012, Posobilov managed a team of employees who worked to obtain advanced, technologically cutting-edge microelectronics from manufacturers and suppliers located within the U.S. and to export those high-tech goods to in Russia, while evading the government licensing system set up to control such exports. These commodities have applications and are frequently used in a wide range of military systems, including radar and surveillance systems, missile guidance systems and detonation triggers. Russia was not capable of producing many of these sophisticated goods domestically. Between 2002 and 2012, ARC shipped approximately $50,000,000 worth of microelectronics and other technologies to Russia. ARC’s largest clients were certified suppliers of military equipment for the Russian Ministry of Defense.
To induce manufacturers and suppliers to sell these high-tech goods to ARC, and to evade applicable export controls, Posobilov and his co-conspirators provided false end user information in connection with the purchase of the goods, concealed the fact that they were exporters and falsely classified the goods they exported on export records submitted to the Department of Commerce.
Ultimate recipients of ARC’s products included a research unit for the Russian FSB internal security agency, a Russian entity that builds air and missile defense systems and another that produces electronic warfare systems for the Russian Ministry of Defense.
The government’s case is being handled by the Office’s National Security & Cybercrime Section. Assistant U.S. Attorneys Richard M. Tucker and Una A. Dean, as well as Trial Attorney David Recker from the National Security Division’s Counterintelligence and Export Control Section, are in charge of the prosecution. Assistant U.S. Attorney Claire Kedeshian is handling the forfeiture aspects of the case.
Exporter of Microelectronics to Russian Military Sentenced to 135 Months in Prison Following Convictions on All Counts at TrialRead the Press Release
Earlier today in United States District Court in Brooklyn, Alexander Posobilov was sentenced to 135 months’ imprisonment for conspiring to export and illegally exporting controlled microelectronics to Russia, as well as for conspiring to launder money.
Posobilov, together with ten other individuals and two corporations – ARC Electronics, Inc. (ARC) and Apex System, L.L.C. (Apex) – were indicted in October 2012. Posobilov and two co-conspirators were subsequently convicted at trial on all counts in October 2015. Of the remaining defendants, five pleaded guilty and three remain at large. ARC is now defunct, and Apex, a Russian-based procurement firm, failed to appear in court.
The sentence was announced by Robert L. Capers, United States Attorney for the Eastern District of New York, and Acting Assistant Attorney General for National Security Mary B. McCord.
“Posobilov helped lead a criminal operation that through lies and subterfuge profited handsomely from the unlawful sale and export of sophisticated American microelectronics for use by the Russian military,” stated United States Attorney Capers. “Today’s sentence shows that those who compromise the national security of the United States for their personal financial gain will face serious punishment.” Mr. Capers extended his grateful appreciation to the Federal Bureau of Investigation, Houston Field Office and the Department of Commerce for their leading roles in the investigation.
“With this sentence, Alexander Posobilov is being held accountable for evading export laws and illegally exporting American microelectronics to Russia for military use,” said Acting Assistant Attorney General McCord. “Export laws exist as an important part of our national security framework and protecting national assets from ending up in the hands of our potential adversaries is one of our highest priorities.”
Posobilov joined ARC in 2004, where he ascended to become the procurement manager and day-to-day director of the company. Between approximately October 2008 and October 2012, managed a team of employees who worked to obtain advanced, technologically cutting-edge microelectronics from manufacturers and suppliers located within the United States and to export those high-tech goods to in Russia, while evading the government licensing system set up to control such exports. These commodities have applications and are frequently used in a wide range of military systems, including radar and surveillance systems, missile guidance systems and detonation triggers. Russia was not capable of producing many of these sophisticated goods domestically. Between 2002 and 2012, ARC shipped approximately $50,000,000 worth of microelectronics and other technologies to Russia. ARC’s largest clients were certified suppliers of military equipment for the Russian Ministry of Defense.
To induce manufacturers and suppliers to sell these high-tech goods to ARC, and to evade applicable export controls, Posobilov and his co-conspirators provided false end user information in connection with the purchase of the goods, concealed the fact that they were exporters, and falsely classified the goods they exported on export records submitted to the Department of Commerce.
Ultimate recipients of ARC’s products included a research unit for the Russian FSB internal security agency, a Russian entity that builds air and missile defense systems and another that produces electronic warfare systems for the Russian Ministry of Defense.
Today’s sentencing took place before United States District Senior Judge Sterling Johnson, Jr.
The government’s case is being handled by the Office’s National Security & Cybercrime Section. Assistant United States Attorneys Richard M. Tucker and Una A. Dean, as well as Trial Attorney David Recker from the National Security Division’s Counterintelligence and Export Control Section, are in charge of the prosecution. Assistant United States Attorney Claire Kedeshian is handling the forfeiture aspects of the case.
The Defendant:
ALEXANDER POSOBILOV
Age: 62
Houston, Texas
E.D.N.Y. Docket No. 12 CR 626 (SJ)
Member of Mexican Sex Trafficking Ring Sentenced to 188 Months in PrisonRead the Press Release
Earlier today in federal court in Brooklyn, Paulino Ramirez-Granados, a member of the Granados family sex trafficking ring, based in Tenancingo, Tlaxcala, Mexico, was sentenced to over 15 years’ incarceration and five years’ supervised release by United States District Judge Kiyo Matsumoto, based on his guilty plea to trafficking young Mexican women into the United States and forcing them into prostitution. He was also ordered to pay restitution to Jane Doe #1 in the amount of $1,229,760. Paulino Ramirez-Granados is the latest member of the Granados organization to be sentenced in this case since 2013.
The sentence was announced by Robert L. Capers, United States Attorney for the Eastern District of New York, and Angel M. Melendez, Special Agent-in-Charge, U.S. Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI), New York. The sentence was based on the defendant’s guilty plea last July to federal sex trafficking charges.
As established during court proceedings, the defendant, working with other members of the Granados family, smuggled numerous young women from Mexico to New York between 2000 and 2010, and then forced them, using threats and violence, to work as prostitutes in New York City and elsewhere. The male members of the Granados trafficking ring used false promises of romance and marriage to lure the victims into relationships and convince them to travel to the United States to make money so that they could build homes for themselves in Mexico. As further established in sentencing proceedings in this investigation, the victims of the Granados family were also routinely subjected to violence, threats and sexual assaults by the defendants. The defendant Paulino Ramirez-Granados additionally impregnated one of the women and then threatened that she would never see her child again if she did not continue to prostitute for him.
"This extensive Mexican sex trafficking operation has preyed upon countless young women, exploiting and dehumanizing these victims in terrible ways, in order to line their own pockets. This prosecution and sentence signify the dismantling of an exploitative family organization and our continued commitment to seeking justice for its victims,” stated United States Attorney Capers.
“With a promise of companionship and a better life in the United States, Paulino Ramirez-Granados, instead trafficked unsuspecting women from Mexico into a life of exploitation and prostitution here in New York,” said HSI New York Special Agent-in-Charge Melendez. “HSI agents will relentlessly pursue human trafficking organizations and its members until they are all dismantled and brought to justice.”
Jane Doe #1 stated that the defendant Paulino and his co-conspirator “made promises that we would escape poverty if I worked in prostitution. But it never happened …. Women who are forced into prostitution never do so. [The defendant and his co-conspirator] were the ones who escaped poverty through the sexual slavery of myself and other women. I see now how I was utilized and forced into prostitution with false promises of love, and I never received that love. I lost the best moments of my life, when I could have been with my family.”
“For years I cried in silence. I carry with me the scars of [the defendant and his co-conspirator’s] abuse every day, but I can no longer be silent. I am here today so that [the defendant] may never be able to force another woman into prostitution. For myself, for the other women he has victimized, and for the women I hope he never has the chance to hurt in the future…”
Since 2009, the Department of Justice and HSI have collaborated with Mexican law enforcement counterparts in a Bilateral Human Trafficking Enforcement Initiative aimed at strengthening high-impact prosecutions under both U.S. and Mexican law. The initiative is aimed at dismantling human trafficking networks operating across the U.S.-Mexico border, bringing human traffickers to justice, reuniting victims with their children and restoring the rights and dignity of human trafficking victims held under the trafficking networks’ control. These efforts have resulted in successful prosecutions in both Mexico and the United States, including U.S. federal prosecutions of more than 50 defendants in multiple cases in New York, Georgia, Florida, and Texas since 2009, and numerous Mexican federal and state prosecutions of associated sex traffickers. In the Eastern District of New York’s comprehensive anti-trafficking program, more than 70 defendants have been indicted in sex trafficking cases to date, and provided assistance to more than 135 victims, including 39 minors. In addition, through the Eastern District of New York’s anti-trafficking program, 18 children have been reunited with their victim-mothers.
The government’s case is being handled by the Office’s Civil Rights Section. Assistant United States Attorney Jennifer M. Sasso is in charge of the prosecution.
The Defendant:
PAULINO RAMIREZ-GRANADOS
Age: 39
Tenancingo, Mexico
E.D.N.Y. Docket No. 11-CR-557
Jacob “Kobi” Alexander Sentenced to 30 Months in Prison for Securities FraudRead the Press Release
BROOKLYN N.Y. – Jacob Alexander, also known as “Kobi Alexander,” an Israeli national, was sentenced earlier today to 30 months in prison after having pleaded guilty to securities fraud for his role in a stock options backdating scheme involving Comverse Technologies Inc. (Comverse). Alexander was a former Chief Executive Officer and Chairman of the Board of Directors of Comverse, which was traded on the NASDAQ stock market. Comverse was a component stock of the S&P 500 and the NASDAQ 100 at the time of the offense. Last year, Alexander was extradited from Namibia after having been indicted in the Eastern District of New York more than ten years ago. Today’s sentence represents the longest term of incarceration imposed by a court in connection with an options backdating scheme.
The sentencing was announced by U.S. Attorney Robert L. Capers of the Eastern District of New York, and William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI). In addition, Mr. Capers thanked the Securities and Exchange Commission (SEC) and the Department of Justice’s Office of International Affairs (OIA) for their cooperation and assistance in the prosecution.
“Today’s sentence should send a powerful message to high ranking executives that corporate rank is no shield to criminal liability. CEOs and other members of the C-suite who commit crimes will be held to account to the full extent of the law. For more than ten years, law enforcement pursued Kobi Alexander, and now he has finally been punished for his role in a securities fraud scheme,” stated United States Attorney Capers. “We will continue to follow the evidence in all of our cases, wherever it may lead, and protect the investing public.”
“Kobi Alexander thought he could outwit the law, not once, but twice. First by committing the crimes he’s accused of, and a second time by fleeing the country when he became aware his actions had caught up to him. This case serves as a reminder that the FBI's reach is global, and our commitment to seeing justice served doesn't stop at a border—out of sight will never mean out of mind, and we don’t let you get away that easily,” stated FBI Assistant Director-in-Charge Sweeney.
According to documents filed in this case, Comverse was a communications software company with offices in Woodbury, New York. Between 1998 and 2006, the defendant and his coconspirators engaged in a fraudulent backdating scheme using hindsight to select the issuance date of Comverse stock options, which they awarded to themselves and Comverse employees, and then lied about this practice to investors in public filings and elsewhere. In doing so, the defendant and his coconspirators were able to select issuance dates when Comverse stock was trading lower, thereby awarding themselves and Comverse employees “in-the-money” options without properly accounting for these options in Comverse’s financial disclosures to investors. By backdating options, the defendant and his coconspirators violated accounting rules and caused Comverse to overstate its profits. Additionally, the backdated options also violated the terms of Comverse’s stock option plans that were approved by its shareholders. As the top recipient of stock options in every company-wide grant, the defendant gained approximately $30 million in paper profits from the scheme. Ultimately, the defendant agreed to pay $60 million in forfeiture and civil settlements, which was applied as restitution to compensate Comverse and its shareholders.
When the defendant’s conduct came to light, he attempted to obstruct justice by offering to bribe a witness to make false statements to federal investigators. Shortly before being charged in connection with his scheme, and after he was aware of the government’s investigation, the defendant moved to Namibia, where he relocated with his family. The government promptly sought the defendant’s extradition.
Today's proceeding took place before United States District Judge Nicholas G. Garaufis.
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The government’s case is being prosecuted by the Office’s Business and Securities Fraud Section. Assistant United States Attorney James P. Loonam is in charge of the prosecution and led the Office’s efforts to secure Alexander’s extradition from Namibia, with assistance from the Department of Justice’s Office of International Affairs.
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The Defendant:
JACOB ALEXANDER, also known as “Kobi Alexander”
Age: 64
E.D.N.Y. Docket No. 06-CR-628 (NGG)
Nine Defendants Charged with Conspiracy to Distribute Heroin and Oxycodone in Staten Island, New YorkRead the Press Release
An indictment and two complaints were unsealed today in the United States District Court for the Eastern District of New York charging nine defendants with conspiring to distribute heroin and/or oxycodone in Staten Island, New York.
Eight defendants were arrested earlier today in Staten Island and Brooklyn and are scheduled to be arraigned before Magistrate Judge James Orenstein in Brooklyn this afternoon. One additional defendant was arrested earlier today in Arizona, and her initial appearance is scheduled this afternoon before United States Magistrate Judge David K. Duncan at the federal court house in Phoenix, Arizona. The government will seek to remove to New York for prosecution the defendant arrested out of state.
The charges were announced by Robert L. Capers, United States Attorney for the Eastern District of New York, James J. Hunt, Special Agent-in-Charge, Drug Enforcement Administration (DEA), New York Division, Angel M. Melendez, Special Agent-in-Charge, U.S. Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI), New York, and Commissioner James P. O’Neill of the New York City Police Department (NYPD).
“These defendants allegedly pushed heroin and oxycodone for months, contributing to the opioid plague that has caused great suffering on Staten Island,” stated United States Attorney Capers. “Today’s arrests demonstrate this Office’s commitment to marshal all available resources necessary to investigate and prosecute those who peddle these highly addictive narcotics in our communities.” Mr. Capers expressed his appreciation to the Richmond County District Attorney's Office for its participation in today's arrests.
DEA Special Agent in Charge Hunt stated, “Since the millennium, statistics show a steady rise of drug overdoses in New York City with fatalities skyrocketing these past five years. Throughout that time, Staten Islanders weathered the storm termed by many as the ‘opioid epidemic’, with users transitioning from abusing diverted prescription medication, to heroin, to heroin mixed with fentanyl. By collaborating resources with our state, local and federal law enforcement partners, we arrested nine dealers responsible for fueling opioid addiction on Staten Island.”
“America’s addiction to opioids is dependent on drug-pushing organizations like this. Selling rock and prescription drugs out of their front door, in their own community, is inexcusable,” said Melendez, Special Agent-in-Charge for HSI New York. “These arrests demonstrate the collaborative and continuing endeavor to attack the persistent problem of drug trafficking in New York and the surrounding communities.”
“As alleged, these individuals distributed heroin and oxycodone in their own community, and by doing so they endangered the lives of those who live and work around them by contributing to the supply of highly addictive narcotics that have led to numerous overdoses and deaths. The NYPD is committed to holding accountable those who are responsible for this deadly flow of poison and ensuring they are brought to justice,” said Police Commissioner O’Neill.
As alleged in the indictment and complaints unsealed today, as part of its investigation of narcotics trafficking by defendant Michael Calabria, DEA agents uncovered a narcotics distribution ring involving the defendants Joseph Calabria, Stephen Delpriore, Devida Lombardo, Ugo Gallo, Carol Monforte, Vincent Maniscalco, Glenn DePaolo and Maria DePaolo. As alleged in the court filings, the defendants conspired to distribute heroin and/or oxycodone from September 2016 to January 2017.
These arrests were the result of a long-term investigation by the U.S. Drug Enforcement Administration’s New York Organized Crime Drug Enforcement Strike Force, which is comprised of agents and officers of the DEA, the New York City Police Department, Immigration and Customs Enforcement – Homeland Security Investigations (HSI), the New York State Police, the U. S. Internal Revenue Service Criminal Investigation Division, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Federal Bureau of Investigation, U.S. Secret Service, the U.S. Marshal Service, New York National Guard, the New York Department of Taxation and Finance, the Clarkstown Police Department, U.S. Coast Guard, Port Washington Police Department and New York State Department of Corrections and Community Supervision. The Strike Force is partially funded by the New York/New Jersey High Intensity Drug Trafficking Area (HIDTA), which is a federally funded crime fighting initiative.
The charges in the indictment and complaints are merely allegations, and the defendants are presumed innocent unless and until proven guilty. If convicted of the most serious offense, the defendants face up to 20 years of imprisonment.
The government’s case is being prosecuted by Assistant United States Attorneys Karthik Srinivasan and Alicia N. Washington.
The Defendants:
MICHAEL CALABRIA
Age: 49
Staten Island, NY
JOSEPH CALABRIA
Age: 52
Staten Island, NY
STEPHEN DELPRIORE
Age: 55
Staten Island, NY
DEVIDA LOMBARDO
Age: 46
Staten Island, NY
UGO GALLO
Age: 46
Staten Island, NY
CAROL MONFORTE
Age: 57
Staten Island, NY
VINCENT MANISCALCO
Age: 55
Brooklyn, NY
GLENN DEPAOLO
Age: 59
Staten Island, NY
MARIA DEPAOLO
Age: 55
Staten Island, NY
E.D.N.Y. Docket Numbers:
United States v. Michael Calabria, et al, 17-CR-91
United States v. Carol Monforte et al, 17-MJ-170
United States v. Ugo Gallo, 17-MJ-171
Nine Defendants Arrested for Operating an International Steroid Distribution RingRead the Press Release
A complaint was unsealed yesterday in the United States District Court in Brooklyn charging ten defendants with operating an international steroid manufacturing and distribution ring. Seven defendants will be arraigned today at the United States Courthouse in Miami, Florida. Two defendants will be arraigned at the United States Courthouse in Phoenix, Arizona, and one remaining defendant is being sought in Phoenix.
The charges were announced by Robert L. Capers, United States Attorney for the Eastern District of New York, and Carl J. Kotowski, Special Agent in Charge, Drug Enforcement Administration (DEA), New Jersey Division.
As set forth in the complaint and other publicly filed documents, the charges against the defendants stem from an investigation into a Miami-based company named Wellness Fitness Nutrition, LLC (“WFN”). WFN’s founder and CEO, Richard Rodriguez, purported that WFN was an “FDA compliant” pharmacy and laboratory licensed to distribute anabolic steroids, which are controlled substances under federal law. In fact, the investigation revealed that WFN was not licensed by the DEA to distribute steroids and routinely dispensed steroids to customers without the requisite medical prescriptions. WFN marketed and sold its wide array of anabolic steroids through its website www.wellnessfitnessnutrition.com.
During the year-long investigation which began in 2015, led by the New Jersey DEA Tactical Diversion Squad, Special Agents and Task Force Officers were able to track the purchase of raw steroid materials by WFN from various companies in China. This raw steroid powder was shipped to a clandestine laboratory in Phoenix, Arizona where it was subsequently manufactured by the defendants into both liquid and pill-form steroids. The finished steroid product was then sent back to Miami where it was labeled, packaged and shipped to WFN’s domestic and international customers. Over the course of the investigation, undercover New Jersey DEA special agents and Task Force Officers made undercover purchases of over $30,000 worth of illicit anabolic steroids from the WFN defendants. A review of WFN customer lists revealed that WFN shipped steroids to at least 50 customers in the Eastern District of New York.
Additionally, the financial investigation into WFN revealed that the company laundered over a million dollars in illicit proceeds back into the operation of its national distribution ring and moved at least ten million dollars in illicit proceeds through various WFN and related entities’ bank accounts.
Today, in connection with the arrests, Task Force Officers executed search warrants at the clandestine lab in Phoenix, Arizona and at the WFN offices and shipping facility located in Miami, Florida.
“As alleged, the defendants made millions of dollars through the illicit online sales of anabolic steroids while operating under the guise of an ‘FDA-compliant’ health and wellness business,” stated United States Attorney Capers. “This case serves as a message that my Office and our law enforcement partners will not allow the widespread illegal distribution of anabolic steroids to go unchecked.” Mr. Capers expressed his appreciation to the DEA Arizona Division, DEA Miami Division, Homeland Security Investigations New Jersey Division, Customs and Border Protection Port of New York/Newark, and U.S. Postal Service Inspection Service New Jersey Division for their assistance during the course of this year-long investigation.
“The results of this investigation send a clear message to the public. It doesn’t matter if you are peddling heroin, cocaine or steroids. If you break the law, we will dedicate the necessary resources to put an end to this type of distribution,” stated DEA Special Agent in Charge Kotowski.
The charges in the complaint are allegations, and the defendants are presumed innocent unless and until proven guilty. If convicted of the offense, the defendants face a maximum sentence of twenty years’ imprisonment.
The government’s case is being prosecuted by Assistant United States Attorneys Michael T. Keilty and Kaitlin T. Farrell. Assistant United States Attorney Claire Kedeshian of the Office’s Civil Division is responsible for the seizure and forfeiture of assets.
The Defendants:
RICHARD RODRIGUEZ
Age: 37
Miami, Florida
JOHN FERRELL
Age: 36
Miami, Florida
NANCY MELO-RODRIGUEZ
Age: 39
Miami, Florida
EDWARD JACOB LIFF
Age: 34
Phoenix, Arizona
XZAVIER APODACA
Age: 30
Phoenix, Arizona
BYRON OLIVER
Age: 37
Phoenix, Arizona
ERICK VITTITOW
Age: 29
Miami, Florida
BADER ALASKARI
Age: 34
North Bay Village, Florida
BERNARD DURAN
Age: 43
Miramar, Florida
JONATHAN GONZALEZ
Age: 37
Miami, Florida
E.D.N.Y. Docket No. 17-MJ-154
Two Managers of a Brooklyn Medical Clinic Indicted for Roles in $2.1 Million Fraud SchemeRead the Press Release
Two managers of a Brooklyn, New York medical clinic were charged in an indictment unsealed today related to their alleged participation in a $2.1 million fraud scheme involving medically unnecessary occupational therapy services.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, U.S. Attorney Robert L. Capers of the Eastern District of New York, 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, Special Agent in Charge Kathy A. Enstrom of Internal Revenue Service Criminal Investigation’s (IRS-CI) New York Office and New York State Medicaid Inspector General Dennis Rosen of the Office of the Medicaid Inspector General (OMIG) made the announcement.
Iezabel Zeltser, 52, of Brooklyn, was charged in an indictment filed yesterday in the Eastern District of New York with one count of conspiracy to commit health care fraud, one count of conspiracy to commit money laundering and three counts of money laundering. Rafael Gilkarov, 51, of Brooklyn, was charged in the indictment with one count of conspiracy to commit money laundering and three counts of money laundering. The defendants made initial appearances today, Feb. 15, at 2:30 p.m. EST before U.S. Magistrate Judge Cheryl L. Pollack of the Eastern District of New York.
According to allegations in the indictment, Zeltser and Gilkarov operated Evercare Occupational Therapy LLC, a Brooklyn medical clinic purported to provide medically necessary occupational therapy services to Medicare and Medicaid beneficiaries. The defendants allegedly paid patients to submit themselves to medically unnecessary therapy services provided by unlicensed aides. To conceal the scheme, Zeltser and Gilkarov allegedly used a skeleton crew of licensed occupational therapists to create fake medical charts. The defendants in turn laundered a substantial portion of the proceeds through shell companies, using the cash to enrich themselves and to pay kickbacks to the beneficiaries, the indictment alleges.
According to the indictment, Evercare submitted approximately $2.1 million in fraudulent claims to the Medicare and Medicaid programs for services which were not medically necessary or not provided and was paid approximately $1 million on those claims.
The charges and allegations contained in an indictment are merely accusations. The defendants are presumed innocent unless and until proven guilty.
HHS-OIG, IRS-CI and the New York State OMIG 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. The case is being prosecuted by Trial Attorneys Debra Jaroslawicz and Richard A. Powers of the Criminal Division’s Fraud Section.
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 more than 3,000 defendants who have collectively billed the Medicare program for more than $11 billion. In addition, HHS Centers for Medicare and Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
Two New York City Residents Pleaded Guilty to All Charges in Terrorism CaseRead the Press Release
Earlier today, Munther Omar Saleh, 21, of Queens, New York, pleaded guilty at the federal courthouse in Brooklyn, New York, to all charges in an indictment charging him with conspiring and attempting to provide material support to the Islamic State of Iraq and the Levant (ISIL), a designated foreign terrorist organization, and with assaulting and conspiring to assault federal officers. Saleh’s co-defendant, Fareed Mumuni, 22, of Staten Island, New York, pleaded guilty yesterday, on Thursday, February 9, to conspiring and attempting to provide material support to ISIL, assaulting and conspiring to assault federal officers and attempted murder of federal officers. Saleh faces up to 53 years of imprisonment at sentencing, while Mumuni faces up to 85 years of imprisonment at sentencing. Saleh’s and Mumuni’s guilty pleas were accepted by U.S. District Judge Margo K. Brodie, who has scheduled both sentencing hearings for May 16.
The announcement was made by Acting Assistant Attorney General for National Security Mary B. McCord, U.S. Attorney Robert L. Capers for the Eastern District of New York, Assistant Director in Charge William F. Sweeney, Jr. of the FBI’s New York Field Office and Commissioner James P. O’Neill of the New York City Police Department (NYPD).
“Munther Omar Saleh and Fareed Mumuni conspired to provide material support to ISIL and devised a plan to conduct an attack in New York. During his arrest, Mumuni stabbed an FBI agent numerous times, but thankfully the agent’s body armor protected him from the defendant’s attack and the defendant was safely apprehended by law enforcement,” said Acting Assistant Attorney General McCord. “Counterterrorism is the National Security Division’s highest priority. We will continue to seek justice against any individuals who conspire to provide material support to designated foreign terrorist organizations, and those who attempt to harm the brave law enforcement officials who risk their lives to protect us.”
“In the name of ISIL’s false and hateful ideology, these defendants attacked the law enforcement officers who work tirelessly to preserve the safety of our communities,” stated U.S. Attorney Capers. “We are especially grateful that an FBI Special Agent survived the violent attack perpetrated by Fareed Mumuni, who repeatedly stabbed the agent in the chest during the execution of a search warrant in a terrorism investigation. We and our partners on the Joint Terrorism Task Force remain ever-vigilant in our efforts to protect our citizens and allies and by bringing terrorists to face justice. Today’s convictions will help incapacitate these defendants and sends a strong message to those who would follow in their footsteps.” Mr. Capers thanked the West Midlands Police in the United Kingdom for their assistance in providing evidence related to foreign coconspirators.
“Today’s guilty pleas show just how close the threat of homegrown terrorism exists for New York City. From their respective homes in Queens and Staten Island, Saleh and Mumuni conspired to place a pressure cooker bomb in the New York metro area on behalf of ISIL. Mumuni even attacked an FBI agent when a court-authorized search was being conducted by the Joint Terrorism Task Force at his home in Staten Island. Threats like this are exactly why protecting the United States from a terrorist attack remains the FBI’s number one priority,” stated Assistant Director in Charge Sweeney.
“Saleh and Mumumi engaged in plotting attacks against New York City in the name of ISIL. They received instructions from senior ISIL leaders in Syria. They were committed to violence. When the arrests were made the defendants were armed. One attacked an FBI agent with a large knife. The detection and disruption of these plots is a credit to the partnership between the FBI-NYPD Joint Terrorism Task Force and the NYPD's Intelligence Bureau,” said Police Commissioner O'Neill.
As alleged in the indictment and in other court filings, Saleh and Mumuni conspired to support ISIL by helping their co-conspirators attempt to travel to ISIL-controlled territory in order to join ISIL, and by plotting to use a pressure-cooker bomb to conduct a terrorist attack in the New York metropolitan area on behalf of ISIL. As part of their support for ISIL, Saleh and Mumuni, together with other co-conspirators, assisted New Jersey resident Nader Saadeh’s planned travel to ISIL-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 ISIL-controlled territory. Saadeh was subsequently apprehended and pleaded guilty in the U.S. District Court for the District of New Jersey to conspiring to provide material support to ISIL. Working with ISIL fighters located overseas, Saleh and Mumuni also coordinated their plot to conduct a terrorist attack in New York City. Saleh sought and received instructions from an ISIL attack facilitator to create a pressure-cooker bomb and discussed with the same ISIL attack facilitator potential targets for a terrorist attack in New York City.
As detailed in court documents, Saleh informed ISIL fighters that his co-conspirators, five individuals located in New York and New Jersey, had confronted law enforcement officers who were continuously surveilling them. Saleh also sought and received religious authorization from an ISIL fighter permitting Mumuni to conduct a suicide “martyrdom” attack by using a pressure-cooker bomb against law enforcement officers who were following the co-conspirators and thus preventing them from traveling to join ISIL.
On June 13, 2015, Saleh and another individual were arrested in Queens after they charged at a federal officer who was performing physical surveillance of Saleh. Saleh and the other individual 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. Fortunately, the knife did not penetrate the agent’s protective body armor and he sustained only minor injuries.
During a search of the vehicle used by Mumuni, investigators recovered a second large knife. In his post-arrest interview, Mumuni admitted that Saleh had informed him that an ISIL 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. Mumuni further admitted that he had kept the knife he used to attack the agent wrapped in a t-shirt in his bed, as well as the knife recovered from the vehicle, specifically for use in an anticipated confrontation with law enforcement officers.
The government’s case is being prosecuted by the Office’s National Security & Cybercrime Section. Assistant United States Attorneys Alexander A. Solomon, Douglas M. Pravda and Ian C. Richardson for the Eastern District of New York are in charge of the prosecution, with assistance provided by Trial Attorneys Justin Sher and Robert Sander of the National Security Division’s Counterterrorism Section.