Eastern District of New York
Press releases recorded for this federal judicial district.
Former Financial Director for Multinational Consulting Company Indicted for Misappropriating More than $8.2 MillionRead the Press Release
Earlier today, at the federal court in Brooklyn, an indictment was unsealed charging Jordan Khammar with wire fraud and money laundering for his role in a decade-long scheme to defraud a multinational media, brand management, and consulting company and stealing over $8.2 million. Khammar was arrested this morning in Columbus, Ohio, and will appear this afternoon in federal court in the Southern District of Ohio.
Joseph Nocella, Jr., United States Attorney for the Eastern District of New York, and Harry T. Chavis, Jr., Special Agent in Charge, Internal Revenue Service-Criminal Investigation, New York (IRS-CI New York) announced the arrest and charges.
“As alleged, for over a decade and on hundreds of occasions, Khammar betrayed his employer’s trust and took advantage of his access to its financial systems for personal gain,” stated United States Attorney Nocella. “Our Office remains committed to seeking justice for all victims of fraud and prosecuting those who perpetrate it.”
“Not only is it alleged that Khammar engaged in a scheme to steal, misappropriate, and embezzle nearly $8.2 million from his former employer by exploiting his access the company’s financial system, but he then tried to conceal his fraud by falsifying company records," stated IRS-CI Special Agent in Charge Chavis. "For a decade, Khammar greedily filled his pockets and spent the stolen money lavishly, but IRS Criminal Investigation caught up with him, and he will now pay what he owes for his alleged criminal acts."
As alleged in the indictment, Khammar was hired as a financial consultant in 2006 by a multinational media, brand management, and consulting company (Company-1). He eventually became the company’s Financial Director with access to and control over a wide range of its financial accounts and systems including those tied to banking, accounting, bookkeeping and payroll functions. Between January 2015 and May 2025, Khammar abused that access and control to engage in a scheme to defraud Company-1 out of millions of dollars. During the 10-year period, Khammar initiated over 300 fraudulent wire transactions, sending himself more than $8.2 million dollars from Company-1’s bank account.
Khammar took steps to conceal his scheme from Company-1, including by manipulating its books and records, circumventing internal controls, and limiting other employees’ and consultants’ access to the company financial systems and accounts. For example, Khammar created over 100 false entries in Company-1’s general ledger, disguising his fraudulent wire transfers as purportedly legitimate payments for Company 1’s expenses such as company credit card bill payments, tax payments, and costs associated with the renovation of Company 1’s Brooklyn office.
Khammar wired most of the stolen money to an account held in the name of Olive Tree Ventures, Inc. (Olive Tree), a company that he founded, owned, and controlled. From the Olive Tree account, Khammar dispersed a large portion of the funds to finance his independent business ventures including his media production company, Sideswipe Media, Inc. (Sideswipe), and diverting:
- $3.2 million to fund Sideswipe’s payroll including to pay multiple individuals associated with Sideswipe’s film and television productions, as well as $325,000 in payroll payments to himself;
- $429,000 in commercial real estate rental payments for office space in Brooklyn used by Olive Tree and Sideswipe; and
- $415,000 in transfers to Sideswipe’s bank account.
Khammar also used the stolen funds to purchase hundreds of thousands of dollars-worth of real estate in Florida and Ohio, and to further pay himself and a variety of personal expenses, including:
- $1.2 million in personal credit card bills;
- $163,000 in purported payroll payments to himself via another company that he founded, owned and controlled;
- $135,000 in cash withdrawals; and
- Tens of thousands of dollars in other expenses including furniture, travel, meal purchases, and utility payments.
The charges in the indictment are allegations and the defendant is presumed innocent unless and until proven guilty. If convicted of the charges, Khammar faces up to 20 years in prison.
The government’s case is being handled by the Office’s Business and Securities Fraud Section. Assistant United States Attorneys Jonathan P. Lax and Dana Rehnquist are in charge of the prosecution, with assistance from Paralegal Specialist Liam McNett. Assistant United States Attorney Claire S. Kedeshian of the Office’s Asset Recovery Section is handling forfeiture matters.
The Defendant:
JORDAN KHAMMAR
Age: 47
Columbus, OhioE.D.N.Y. Docket No. 25-CR-283 (AMD)
Senior Member of Mexican Cartel Indicted on Wire Fraud, Money Laundering, and Terrorism Charges for Operating Massive Timeshare Properties Fraud SchemeRead the Press Release
BROOKLYN, NY – Earlier today, an indictment was unsealed in federal court in Brooklyn, charging Julio Cesar Montero Pinzon (Montero Pinzon), also known as “El Tarjetas,” “Moreno,” “El Chess,” “Cesar Hernandez Jimenez,” and “CH Jimenez,” a senior member of the Cartel de Jalisco Nueva Generacion (CJNG), and his half-sister Griselda Margarita Arredondo Pinzon (Arredondo Pinzon), for their roles in an international fraud scheme organized and controlled by CJNG that targeted Americans who own timeshare properties in Mexico. Montero Pinzon and Arredondo Pinzon are each charged with conspiracy to commit wire fraud and conspiracy to commit money laundering. In addition, Montero Pinzon is charged with conspiracy to provide and providing material support to a foreign terrorist organization. CJNG is a transnational criminal group based in Mexico. The defendants are Mexican nationals and are not in U.S. custody.
CJNG is a transnational criminal group based in Mexico. On February 20, 2025, CJNG was designated as a Foreign Terrorist Organization (FTO) and a Specially Designated Global Terrorist. Montero Pinzon continued to engage in CJNG’s timeshare fraud and in the laundering of victim funds derived from that fraud after CJNG was designated as an FTO and with knowledge of CJNG’s designation.
United States Attorney General Pamela Bondi; Joseph Nocella, Jr., United States Attorney for the Eastern District of New York; Brett A. Shumate, Assistant Attorney General of the Justice Department’s Civil Division; Christopher G. Raia, Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI); Frank A. Tarentino III, Special Agent in Charge, Drug Enforcement Administration New York Division (DEA New York); and Harry T. Chavis, Jr., Special Agent in Charge, Internal Revenue Service Criminal Investigation, New York (IRS-CI New York), announced the indictment.
“This senior leader of a foreign terrorist organization allegedly defrauded innocent citizens to fuel terrorism against the American people,” stated Attorney General Bondi. “The CJNG and other cartels are on notice: no scheme, plot, or conspiracy will evade the reach of this Justice Department.”
“As alleged, Montero Pinzon and Arredondo Pinzon filled the coffers of a violent foreign terrorist and narcotics trafficking organization through a sophisticated fraud scheme that victimized thousands of American timeshare owners,” stated United States Attorney Nocella. “CJNG funds its criminal terrorist operations using multiple tactics, from trafficking dangerous narcotics to executing complex fraud schemes, and our Office will continue to use all available tools and resources to protect American investors and the public at large, and bring to justice those who provide support to the cartel.”
Mr. Nocella also expressed his appreciation to the Justice Department’s Consumer Protection Branch and National Security Division, and U.S. Customs and Border Protection, New York Field Office, for their invaluable assistance during the investigation.
“For more than a decade, Julio Montero Pinzon, a senior CJNG cartel leader, and Griselda Arredondo Pinzon allegedly defrauded timeshare owners before laundering the illicit proceeds to fund their terrorist organization,” stated FBI Assistant Director in Charge Raia. “This alleged scheme spanned the globe and exploited thousands of victims, reflecting the cartel’s evolution of developing various mechanisms for criminal financing. Today’s significant disruption emphasizes the FBI’s determined resolve to not only eliminate any monetary source fueling criminal enterprises but also defend our nation against foreign adversaries.”
“CJNG has repeatedly victimized our communities through widespread drug trafficking, ruthless violence, money laundering, fraud, and other criminal schemes. Their cartel operations extend well beyond Mexico, pumping poison into American streets, fueling addiction, tearing apart neighborhoods, and corrupting financial systems,” stated DEA New York Special Agent in Charge Tarentino. “Thanks to the relentless work of DEA’s Trident Initiative—an initiative built with our federal law enforcement partners and created specifically to target and dismantle drug cartels and their leadership, the DEA and our partners were able to pursue senior members like Montero Pinzon and Arredondo Pinzon, cutting off CJNG and its network of its illicit profits through money laundering and fraud. The DEA remains relentless in dismantling these cartels and our pursuit for justice. This is our global fight—and our promise to save lives.”
“Cartel de Jalisco Nueva Generacion ran this timeshare fraud scheme like a business, with each member playing a role—finding the investors to victimize, manipulating the docs and online sites, moving and hiding the money, and securing funds to purchase and distribute deadly narcotics into the United States,” stated IRS-CI New York Special Agent in Charge Chavis. “This massive, multi-million dollar fraud required timeshare owners to pay up front to sell or rent their timeshares, only to be left victim to the false promise of receiving money later. The CJNG cannot continue to operate with impunity—pocketing massive profits from narcotics trafficking and flat-out deception—which is why federal law enforcement will continue partnering in these investigations until this entire criminal organization is dismantled.”
As alleged in the indictment, since approximately 2012, CJNG perpetrated an “advance fee” fraud scheme targeting owners of timeshare properties in Mexico, including many cities in Jalisco. As part of the scheme, timeshare owners, many of whom were residents and citizens of the United States, were fraudulently induced to pay money up front either to sell or rent their timeshares under the pretext of fees and taxes, in exchange for false promises of receiving money later. Despite paying the advance fees, the victim timeshare owners did not receive the funds as promised and were unable to recoup their advance fee payments. The fraud scheme was multi-layered, and involved follow-on schemes in which the fraudsters contacted victim timeshare owners and claimed to be lawyers or government officials who could help the victims recover their lost funds, so long as they paid additional advance fees.
The timeshare fraud scheme perpetrated by CJNG was operated out of various call centers in Mexico, where fraudsters contacted and solicited timeshare owners. Since approximately 2012, Montero Pinzon participated in the creation and management of a financial network for receiving and laundering funds obtained from victims of CJNG’s timeshare fraud scheme. Arredondo Pinzon worked at a CJNG-controlled central office that oversaw the operations of the call centers and oversaw the receipt and laundering of victim funds.
The charges in the indictment are allegations, and the defendants are presumed innocent unless and until proven guilty. If convicted, the defendants face up to 20 years’ imprisonment on each count.
Additionally, on August 13, 2025, U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) sanctioned Montero Pinzon for his role in CJNG’s timeshare fraud scheme. Arredondo Pinzon was previously sanctioned by OFAC for her role in CJNG’s timeshare fraud scheme. To date, OFAC has sanctioned over 70 individuals and entities based on their participation in CJNG’s timeshare fraud. Between approximately 2019-2024, approximately 6,000 U.S. victims have reported losses of approximately $350 million attributable to timeshare fraud schemes in Mexico.
The government’s case is being handled by the Office’s Business and Securities Fraud Section and International Narcotics and Money Laundering Section, with the Justice Department Civil Division’s Consumer Protection Branch. Assistant United States Attorneys Benjamin Weintraub and Andrew Wang are in charge of the prosecution with Trial Attorneys Brant Cook and Maryann McGuire. Assistant United States Attorney Claire S. Kedeshian of the Office’s Asset Recovery Section is handling forfeiture matters.
The case is part of the work of the Office’s Transnational Criminal Organizations Strike Force.
Complaints are often under-reported. Victims are encouraged to file a complaint at IC3.gov. Additional resources for victims are available at: FBI Timeshare Fraud Victim Resource Page
The Defendants:
JULIO CESAR MONTERO PINZON (also known as “El Tarjetas,” “Moreno,” “El Chess,” “Cesar Hernandez Jiminez,” and “CH Jiminez”)
Age: 43
Puerto Vallarta, MexicoGRISELDA MARGARITA ARREDONDO PINZON
Age: 35
Puerto Vallarta, MexicoE.D.N.Y. Docket No. 25-CR-169 (ARR)
25-cr-169_julio_montero_pinzon_et_al_indictment.pdfSenior CJNG Member Indicted on Wire Fraud, Money Laundering, and Terrorism Charges for Operating Massive Timeshare Fraud SchemeRead the Press Release
Earlier today, an indictment was unsealed charging Julio Cesar Montero Pinzon (Montero Pinzon), also known as El Tarjetas, Moreno, El Chess, Cesar Hernandez Jimenez, and CH Jimenez, a senior member of the Cartel de Jalisco Nueva Generacion (CJNG), and his half-sister Griselda Margarita Arredondo Pinzon (Arredondo Pinzon), for their roles in perpetrating an international fraud scheme targeting Americans who own timeshare properties in Mexico. Montero Pinzon and Arredondo Pinzon were each charged with conspiracy to commit wire fraud and conspiracy to commit money laundering. In addition, Montero Pinzon was charged with conspiracy to provide material support to a foreign terrorist organization and providing and attempting to provide material support to a foreign terrorist organization. Both Montero Pinzon and Arredondo Pinzon are Mexican nationals and are not in U.S. custody.
“This senior leader of a foreign terrorist organization allegedly defrauded innocent citizens to fuel terrorism against the American people,” said Attorney General Pamela Bondi. “The CJNG and other cartels are on notice: no scheme, plot, or conspiracy will evade the reach of this Justice Department.”
“As alleged, Montero Pinzon and Arredondo Pinzon filled the coffers of a dangerous terrorist organization through a sophisticated fraud scheme that victimized thousands of American timeshare owners,” said U.S. Attorney Joseph Nocella for the Eastern District of New York. “Terrorist cartels such as CJNG fund their activities not only through drug trafficking but also through complex fraud schemes, and this office is committed to aggressively prosecuting such crimes.”
“For more than a decade, Julio Montero Pinzon, a senior CJNG cartel leader, and Griselda Arredondo Pinzon allegedly defrauded timeshare owners before laundering the illicit proceeds to fund their terrorist organization,” said Assistant Director in Charge Christorpher G. Raia of the FBI New York Field Office. “This alleged scheme spanned the globe and exploited thousands of victims, reflecting the cartel’s evolution of developing various mechanisms for criminal financing. Today’s significant disruption emphasizes the FBI’s determined resolve to not only eliminate any monetary source fueling criminal enterprises but also defend our nation against foreign adversaries.”
“CJNG has repeatedly victimized our communities through widespread drug trafficking, ruthless violence, money laundering, fraud, and other criminal schemes. Their cartel operations extend well beyond Mexico, pumping poison into American streets, fueling addiction, tearing apart neighborhoods, and corrupting financial systems,” said Special Agent in Charge Frank A. Tarentino of DEA New York Division. “Thanks to the relentless work of DEA’s Trident Initiative — an initiative built with our federal law enforcement partners and created specifically to target and dismantle drug cartels and their leadership, the DEA and our partners were able to pursue senior members like Montero Pinzon and Arredondo Pinzon, cutting off CJNG and its network of its illicit profits through money laundering and fraud. The DEA remains relentless in dismantling these cartels and our pursuit for justice. This is our global fight — and our promise to save lives.”
“Cartel de Jalisco Nueva Generacion ran this timeshare fraud scheme like a business, with each member playing a role — finding the investors to victimize, manipulating the docs and online sites, moving and hiding the money, and securing funds to purchase and distribute deadly narcotics into the United States,” said Special Agent in Charge Harry T. Chavis of IRS-CI's New York Field Office. “This massive, multi-million dollar fraud required timeshare owners to pay up front to sell or rent their timeshares, only to be left victim to the false promise of receiving money later. The CJNG cannot continue to operate with impunity — pocketing massive profits from narcotics trafficking and flat-out deception — which is why federal law enforcement will continue partnering in these investigations until this entire criminal organization is dismantled.”
According to the indictment, CJNG has been perpetrating an “advance fee” fraud scheme targeting owners of timeshare properties since approximately 2012. As part of the scheme, timeshare owners, many of whom were residents and citizens of the United States, were fraudulently induced to pay money up front either to sell or rent their timeshares under the pretext of fees and taxes, in exchange for false promises of receiving money later. Despite paying the advance fees, the victim timeshare owners did not receive the funds as promised and were unable to recoup their advance fee payments. The fraud scheme was multi-layered, involving follow-on schemes in which the fraudsters contacted victim timeshare owners and claimed to be lawyers or government officials who could help the victims recover their lost funds, so long as they paid additional advance fees.
The timeshare fraud scheme perpetrated by CJNG was operated out of various call centers in Mexico, where fraudsters contacted and solicited timeshare owners. Since approximately 2012, Montero Pinzon participated in the creation and management of a financial network for receiving and laundering funds obtained from victims of CJNG’s timeshare fraud scheme. Arredondo Pinzon worked at a CJNG-controlled central office that oversaw the operations of the call centers and oversaw the receipt and laundering of victim funds.
If convicted, the defendants face up to 20 years in prison on each count.
On Feb. 20, CJNG was designated as a Foreign Terrorist Organization (FTO) and a Specially Designated Global Terrorist, pursuant to section 219 of the Immigration and Nationality Act, as amended, and Executive Order 13224, as amended. Montero Pinzon continued to engage in CJNG’s timeshare fraud and in the laundering of victim funds derived from that fraud after CJNG was designated as an FTO and with knowledge of CJNG’s designation.
On Aug. 13, Montero Pinzon was sanctioned by the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) for his role in CJNG’s timeshare fraud scheme. On July 16, 2024, OFAC sanctioned Arredondo Pinzon for her role in CJNG’s timeshare fraud scheme. To date, OFAC has sanctioned over 70 individuals and entities based on their participation in CJNG’s timeshare fraud. Between approximately 2019-2024, approximately 6,000 U.S. victims have reported losses of approximately $350 million attributable to timeshare fraud schemes in Mexico.
Trial Attorneys Brant Cook and Maryann McGuire of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorneys Benjamin Weintraub and Andrew Wang for the Eastern District of New York are prosecuting the case, with critical support from the Justice Department’s Office of International Affairs.
If you or someone you know is age 60 or older and has been a victim of financial fraud, help is standing by at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311). This U.S. Department of Justice hotline, managed by the Office for Victims of Crime, is staffed by experienced professionals who provide personalized support to callers by assessing the needs of the victim and identifying relevant next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies, and provide resources and referrals, on a case-by-case basis. Reporting is the first step. Reporting can help authorities identify those who commit fraud and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses. The hotline is open Monday through Friday from 10:00 a.m. to 6:00 p.m. ET. English, Spanish, and other languages are available.
More information about the department’s efforts to help American seniors is available at its Elder Justice Initiative webpage. For more information about the Consumer Protection Branch and its enforcement efforts, visit its website at www.justice.gov/civil/consumer-protection-branch. Elder fraud complaints may be filed with the FTC at reportfraud.ftc.gov/ or at 877-FTC-HELP. The Department of Justice provides a variety of resources relating to elder fraud victimization through its Office for Victims of Crime, which can be reached at www.ovc.gov.
Complaints are often under-reported. Victims are encouraged to file a complaint at IC3.gov. Additional resources for victims are available at: FBI Timeshare Fraud Victim Resource Page
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Inmate Sentenced to 108 Months’ Imprisonment for Violent Crimes Committed at the Metropolitan Detention Center in BrooklynRead the Press Release
Leury Mojica was sentenced today by United States District Judge Carol Bagley Amon in federal court in Brooklyn to 108 months’ imprisonment for assaulting a federal correction officer and attempting to murder a fellow inmate while the defendant was incarcerated at the Metropolitan Detention Center (MDC-Brooklyn). In April 2025, Mojica pleaded guilty to assaulting a federal officer. As part of his plea agreement, Mojica also admitted to attempting to murder a fellow inmate and agreed that the Court should consider this conduct in determining the sentence imposed.
Joseph Nocella, Jr., United States Attorney for the Eastern District of New York, and Christopher G. Raia, Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the sentence.
“Today’s sentence makes clear that there are serious consequences for inmates who endanger the safety and security of the Metropolitan Detention Center by committing acts of violence against correction officers and other inmates,” stated United States Attorney Nocella. “Holding incarcerated individuals accountable for their conduct will deter other inmates from engaging in crimes and dangerous conduct in the jail.”
Mr. Nocella thanked the United States Attorney’s Office for the Southern District of New York and the U.S. Bureau of Prisons for their assistance with the investigation.
“Leury Mojica physically restrained a fellow inmate to allow others to commence a brutal knife attack and continued his aggressive outbursts with an unprovoked assault against a correction officer. Mojica’s combative streak recklessly endangered the lives of other inmates and correction officers. May today’s sentencing deter any detainee from grossly violating law and order in our federal detention centers through violent misconduct,” stated FBI Assistant Director in Charge Raia.
According to court filings and statements made in court, in February 2022, Mojica was arraigned in the Southern District of New York and ordered detained at MDC-Brooklyn pending trial in connection with charges related to his participation in multiple robberies. On February 28, 2023, Mojica and five other inmates attempted to kill another inmate in a knife attack. Mojica actively participated in the attack, including by restraining the victim while another inmate stabbed him. As a result of the stabbing, the victim suffered lacerations to his forehead and nose, and puncture wounds to his face, neck, lower back, and arms. Subsequently, on August 24, 2024, while detained at MDC-Brooklyn, Mojica punched a federal correction officer in the face after the officer asked the defendant if he wanted fruit with his breakfast. The officer suffered a contusion to his face.
Assistant United States Attorney David Berman is in charge of the prosecution.
The Defendant:
LEURY MOJICA
Age: 22
Bronx, New YorkE.D.N.Y. Docket No. 25-CR-13 (CBA)
Eight Defendants Charged with Firearms Trafficking, Narcotics Distribution, and Related OffensesRead the Press Release
A 23-count indictment was unsealed today charging seven defendants variously with firearms trafficking, conspiracy to traffic firearms, conspiracy to distribute and possession with intent to distribute cocaine base, and related offenses. John Donaldson, also known as “Jay,” Juanita Figueroa, Ronald Jackson, also known as “Stuben,” and Nicholas Willacy, also known as “Light,” were arrested in New York and are scheduled to be arraigned this afternoon before United States Magistrate Judge Robert M. Levy. Marcus Dyce, also known as “John John,” was arrested in Missouri and will be arraigned in the Eastern District of Missouri. Lonney Walker, also known as “Hollywood,” was arrested in South Carolina and will be arraigned in the District of South Carolina. Coty Harley is in state custody in New York and will be arraigned in the Eastern District of New York at a later date. An eighth defendant, Juancarlos Hechavarria, Sr., charged separately by complaint, was arrested in South Carolina and will be arraigned in the District of South Carolina.
Joseph Nocella, Jr., United States Attorney for the Eastern District of New York; Christopher G. Raia, Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI); and Jessica S. Tisch, New York City Police Department (NYPD) announced the charges.
“As alleged, the defendants sold a significant number of pistols, rifles, and bags of crack cocaine in Staten Island, New Jersey, and the Bronx,” stated United States Attorney Nocella. “Gun violence and the proliferation of narcotics are serious and ongoing threats to our communities. Our Office and federal and local law enforcement are committed to protecting the public by stopping the flow of dangerous firearms and narcotics into the hands of criminals by using proactive investigations and collaborating with our law enforcement partners.”
“These eight defendants allegedly orchestrated a national trafficking network to import 37 firearms, including assault-style rifles and extended magazines, into the tristate region, while some distributed narcotics as another source of illicit income,” stated FBI Assistant Director in Charge Raia. “Their alleged criminal behavior unnecessarily introduced deadly weapons and drugs into our communities, posing a significant threat to the lives of the surrounding public unaware of these illegal transactions. May today’s Operation Summer Heat takedown emphasize the FBI’s steadfast commitment to continue collaborating with our law enforcement partners to disrupt any unlawful sales fueling criminal activity in our city.”
“These alleged gun traffickers flooded communities in the Bronx and Staten Island with dozens of dangerous firearms, including assault weapons and high-capacity magazines that have no business on the streets of New York City,” stated NYPD Commissioner Tisch. “The members of the NYPD work tirelessly to identify and dismantle these criminal networks that bring illegal guns and drugs into our city and put people in harm's way. I am grateful to the NYPD investigators and our partners at the FBI and the U.S. Attorney’s Office for putting a stop to this dangerous pipeline.”
As alleged in the indictment and court documents, from August 2022 through August 2025, Donaldson, Dyce, Walker and Harley variously engaged in multiple transactions involving the sale of 37 illegal firearms in Staten Island, the Bronx, and New Jersey. Several of the sales took place in the middle of the day in residential areas where members of the public were engaging in daily activities. At least one of the defendants transported firearms from South Carolina to be sold onto the streets of New York. The firearms were predominantly traced to southern states including North Carolina, South Carolina, Kentucky, Texas, and Georgia, and included AR-15 style rifles, shotguns, and pistols of various calibers; semiautomatic weapons; and several extended magazines, including a drum magazine capable of holding approximately 100 rounds of ammunition.
As alleged in the complaint, in addition to the above firearms sales, Hechavarria, Sr., who Dyce connected with a buyer, sold three firearms in exchange for $3,100 in Brooklyn outside a restaurant in broad daylight. All three firearms were traced to South Carolina.
As alleged in the indictment and court documents, several of the defendants also engaged in narcotics trafficking conspiracies involving the sale of cocaine base in the community. On two occasions, Harley sold at least one firearm and cocaine base in one transaction. Following his incarceration on unrelated charges, Harley continued to arrange for the sale of cocaine base in New York communities, including through Figueroa, Willacy and Jackson. As a result, Willacy sold approximately 18 grams of cocaine base in August 2025 and Jackson sold a total of approximately 50 grams of cocaine base from June 2025 through July 2025.
The charges in the indictment are allegations, and the defendants are presumed innocent unless and until proven guilty.
The joint investigation was conducted by the FBI/NYPD Metro Safe Streets Task Force.
The government’s case is being handled by the Office’s Organized Crime and Gangs Section. Assistant United States Attorney Stephanie Pak is in charge of the prosecution of Donaldson, Dyce, Figueroa, Harley, Jackson, Walker and Willacy. Assistant United States Attorney Matthew Sullivan is in charge of the prosecution of Hechavarria, Sr.
The Defendants:
JOHN DONALDSON (also known as “Jay”)
Age: 61
Bronx, New YorkMARCUS DYCE (also known as “John John”)
Age: 50
St. Louis, MissouriJUANITA FIGUEROA
Age: 44
Staten Island, New YorkCOTY HARLEY (also known as “Boatee”)
Age: 39
Staten Island, New YorkRONALD JACKSON (also known as “Stuben”)
Age: 43
Staten Island, New YorkLONNEY WALKER (also known as “Hollywood”)
Age: 48
Columbia, South CarolinaNICHOLAS WILLACY (also known as “Light”)
Age: 47
Staten Island, New YorkE.D.N.Y. Docket No. 25-CR-278 (BMC)
---
JUANCARLOS HECHAVARRIA SR. (also known as “Los”)
Age: 52
Sumter, South CarolinaE.D.N.Y. Docket No. 25-MJ-273
Brooklyn Man Arrested for Setting Church and Residential Building on FireRead the Press Release
BROOKLYN, NY – A criminal complaint has been filed in federal court in Brooklyn charging Bryan Oviedo with setting fire to a church and a residential apartment building on August 20, 2025. Oviedo was arrested in Brooklyn on Saturday, September 13, 2025, and is scheduled to make his initial appearance this afternoon before United States Magistrate Robert M. Levy.
Joseph Nocella, Jr., United States Attorney for the Eastern District of New York; Bryan Miller, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF); Jessica S. Tisch, Commissioner, New York City Police Department (NYPD); and Robert S. Tucker, Commissioner, New York City Fire Department (FDNY), announced the arrest and charge.
“As alleged in the complaint, Oviedo went on a pre-dawn spree in residential neighborhoods in Brooklyn during which he set fire to multiple buildings, including a church and a residential building, while families slept inside, endangering lives and causing first responders to race to the scenes of these arsons,” stated United States Attorney Nocella. “Our Office will vigorously prosecute this type of violent conduct, and work tirelessly to ensure the safety of our most sacred places, including homes and places of worship.”
“This arrest marks a critical step in restoring safety and peace of mind to our community,” stated ATF Special Agent in Charge Miller. “The collaborative efforts between law enforcement, fire investigators, and the public were instrumental in bringing this individual to justice. We remain committed working with our Federal and State partners to hold accountable those who threaten lives and property through acts of deliberate destruction.”
“While New Yorkers were asleep in the dead of night, Bryan Oviedo allegedly put them and their neighbors in grave danger by lighting their residences and a church on fire,” stated NYPD Commissioner Tisch. “Our homes and houses of worship stand as walls of safety for every community, and I am thankful for the quick response of the police officers and firefighters who put their lives at risk to contain these flames. The NYPD will continue to work with our partners in the FDNY, ATF, and the U.S. Attorney’s Office to ensure this arsonist is held fully accountable.”
“Arson is a reckless crime that places innocent New Yorkers and our first responders in harm’s way,” stated FDNY Commissioner Tucker. “Thanks to the coordinated efforts of our Fire Marshals, the NYPD, the ATF, and the U.S Attorney’s Office, this dangerous perpetrator has been removed from the City’s streets and will be brought to justice. This arrest demonstrates the strength of our public safety partnerships and how, together, we keep New Yorkers safe every day.”
As set forth in the complaint, between approximately 3:00 a.m. and 6:00 a.m. on August 20, 2025, Oviedo was captured on surveillance video carrying a trash bag, wearing a distinctive skirt, riding the G train, and walking the streets setting fires to approximately 20 buildings across the Clinton Hill and Prospect Heights neighborhoods in Brooklyn, New York. One surveillance video shows him leaning over a trash can under the columns of a church, located at 520 Clinton Avenue, and lighting the trash can on fire, causing substantial damage to the church. Another surveillance video shows a porch area of a residential building located at 870 Pacific Street erupting in flames after Oviedo approaches in his distinct garb.
The charge in the complaint is an allegation, and the defendant is presumed innocent unless and until proven guilty. If convicted, Oviedo faces a mandatory minimum sentence of five years’ imprisonment, and a maximum sentence of 20 years’ imprisonment.
The government’s case is being handled by the Office’s General Crimes Section. Assistant United States Attorneys Andrew Reich and Andy Palacio are in charge of the prosecution.
The Defendant:
BRYAN OVIEDO
Age: 32
Brooklyn, New YorkE.D.N.Y. Docket No. 25-MJ-268
Defendant Convicted at Trial for Participating in Transnational Telemarketing Scheme that Defrauded Dozens of Victims of More than $12 MillionRead the Press Release
BROOKLYN, NY – Earlier today, in federal court in Brooklyn, Yveler Marcellus was convicted by a jury of conspiracy to commit money laundering and conspiracy to commit mail and wire fraud in connection with a fraudulent scheme that targeted dozens of vulnerable victims in the United States. The verdict followed a five-day trial before United States District Judge Carol Bagley Amon. When sentenced, Marcellus faces up to 40 years in prison.
Joseph Nocella, Jr., United States Attorney for the Eastern District of New York, and Daniel Brubaker, Inspector in Charge, United States Postal Inspection Service, New York Division (USPIS), announced the verdict.
“The evidence showed that Yveler Marcellus worked closely with a crew based in New York, along with co-conspirators abroad, to perpetrate a sprawling, transnational money laundering and fraud scheme that cruelly preyed on vulnerable victims’ fears that their money was compromised and that they were running afoul of the law,” stated United States Attorney Nocella. “Today’s verdict underscores our Office’s commitment to vigorously prosecute criminals who conspire with foreign actors for their own monetary gain and to the financial detriment of elderly and other vulnerable victims.”
Mr. Nocella thanked Homeland Security Investigations, New York, and the Nassau County Police Department for their assistance on the case.
“Postal Inspectors have long investigated telemarketing scams and mail fraud, and unfortunately the elderly are often victims of these schemes by greedy and callous individuals. This verdict is another victory for consumers, and sends a strong message to those who use the U.S. Mail to prey on our seniors, you will be brought to justice and pay for your crimes.” said USPIS Inspector In Charge Brubaker. “The U.S. Postal Inspection Service is committed to combating elder fraud designed to defraud innocent victims primarily by illegal use of the U.S. Mail, and we continue taking steps to educate Americans about the dangers of various types of frauds.”
As proven at trial, between January 2022 and December 2023, Marcellus and his co-conspirators participated in a “tech” scheme, through which co-conspirators based in India contacted victims by phone and convinced them to send money instruments, including checks and money orders, to the defendant and other U.S-based co-conspirators at various addresses in the Eastern District of New York. After receiving the victims’ checks, Marcellus and his U.S.-based co-conspirators laundered the check proceeds through their own bank accounts and other bank accounts that they controlled, shared the proceeds amongst themselves, and sent the remainder of the laundered proceeds to the co-conspirators in India. The scheme is estimated to have netted over $12 million from victims across the United States.
Seven of Marcellus’s co-conspirators previously pleaded guilty for their roles in the scheme and are awaiting sentencing.
The government’s case is being handled by the Office’s General Crimes Section. Assistant United States Attorneys Molly Delaney and David Berman are in charge of the prosecution with the assistance of Paralegal Specialists John Schneider and Erin Payne.
The Defendant:
YVELER MARCELLUS
Age: 32
Brooklyn, New YorkE.D.N.Y. Docket No. 24-CR-9 (S-1) (CBA)
Defendants Who Have Previously Pleaded Guilty:
DANIEL VERNON
Age: 29
Queens, New YorkFELIX MARCIAL
Age: 32
Brooklyn, New YorkTATIANA WILLIAMS
Age: 28
Miramar, FloridaASHEEM HENRY
Age: 34
New York, New YorkRAHMEL THOMPSON
Age: 26
Queens, New YorkGEORGE MIMS
Age: 38
New York, New YorkDAQUAN MITCHELL
Age: 34
New York, New YorkE.D.N.Y. Docket No. 24-CR-9 (CBA)
Former Fiscal Officer for Brooklyn Charity Sentenced to 21 Months’ Imprisonment for EmbezzlementRead the Press Release
BROOKLYN, NY – Marcia Joseph was sentenced today by United States District Judge Eric N. Vitaliano in federal court in Brooklyn to 21 months’ imprisonment for embezzling funds from her employer, a non-profit organization based in Brooklyn that provides employment and education services for those in need (the Non-Profit). Joseph pleaded guilty to wire fraud in January 2024. As part of her sentence, Joseph was also ordered to pay $2.3 million in restitution and forfeiture in the amount of $2.3 million.
Joseph Nocella, Jr., United States Attorney for the Eastern District of New York, Christopher G. Raia, Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Jocelyn E. Strauber, Commissioner, New York City Department of Investigation (DOI) announced the sentence.
“By stealing from a charity she was entrusted to serve, the defendant shamefully diverted resources from those in need to line her own pockets,” stated United States Attorney Nocella. “Today’s sentence makes clear that those who exploit non-profits for personal gain will face the loss of their freedom and serious financial penalties. Our Office is committed to protecting non-profit organizations and the communities that rely on them from fraudsters.”
“Marcia Joseph abused her position and access within a non-profit charity to steal more than two million dollars intended to fund critical employment and education services for the city,” stated FBI Assistant Director in Charge Raia. “For nearly two decades, Joseph selfishly prioritized her extravagant lifestyle at the expense of those who truly needed the financial aid. The FBI remains committed to protecting vulnerable populations from becoming targets of fraudulent and exploitative schemes.”
“Non-profits that receive City funding provide critical services to New Yorkers. As a senior fiscal officer, this defendant had a duty to act in the best interests of this City-funded organization; instead she abused her position and access to steal over $2.3 million, generating fictitious documentation to hide her theft for almost two decades. DOI thanks our law enforcement partners at the U.S. Attorney’s Office for the Eastern District of New York and the FBI for their commitment to protect the City’s precious resources for the benefit of their intended recipients,” stated DOI Commissioner Strauber.
According to court filings and statements made in court, Joseph was a former senior fiscal officer for the Non-Profit. Joseph admitted stealing $2,339,700 from the Non-Profit and funneled the funds to a sham company she had set up. The invoices described services purportedly provided in connection with a New York City Department of Education educational program focusing on students in shelters and, later, job training for adults in shelters. Over the course of nearly 17 years, Joseph generated and submitted more than 500 fictitious invoices and manipulated the Non-Profit’s accounting systems to avoid detection. She used the stolen funds to pay for numerous personal expenses, including approximately $235,000 in mortgage payments, $207,000 in credit card payments, $98,000 in car payments, $45,000 in Amazon expenses, and various other personal items, such as home remodeling, spa treatment, landscaping expenses, and luxury goods.
The government’s case is being handled by the Office’s Public Integrity Section. Assistant United States Attorney Eric Silverberg is in charge of the prosecution. Assistant United States Attorney Claire S. Kedeshian of the Office’s Asset Recovery Section is handling forfeiture matters and Assistant United States Attorney Daniel Saavedra of the Office’s Financial Litigation Program is assisting with restitution matters.
The Defendant:
MARCIA JOSEPH (also known as “Marcia James,” “Marcia Lewis,” and “Marcia Peters”)
Age: 59
Baldwin, Long IslandE.D.N.Y. Docket No. 24-CR-04 (ENV)
Former NYPD Officer Turned Forex Investor Sentenced to 36 Months in Prison for Wire Fraud SchemeRead the Press Release
BROOKLYN, NY – Earlier today, in federal court in Brooklyn, former New York City Police Department officer Jason Rodriguez was sentenced by United States District Judge Ramon E. Reyes, Jr. to 36 months in prison for his role in perpetrating a fraudulent investment scheme. Rodriguez, along with his co-conspirator Edwin Carrion, induced over 20 individuals to invest over $4 million with their foreign exchange (forex) trading fund, Technical Trading Team LLC, based on a slew of misrepresentations. In addition to the term of imprisonment, Judge Reyes ordered Rodriguez to pay a forfeiture money judgment of $748,394.00 and to pay restitution of $2,305,256.00. Rodriguez pleaded guilty to wire fraud conspiracy in November 2024.
The sentence was announced by Joseph Nocella, Jr., United States Attorney for the Eastern District of New York and Christopher G. Raia, Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI).
“Today, the defendant received just punishment for defrauding over 20 individual investors out of millions of dollars of hard-earned money. The defendant violated the trust his clients placed in him by falsely promising them a safe investment opportunity,” stated United States Attorney Nocella. “Our Office and our law enforcement partners will continue to pursue justice for victims of financial crime who fall prey to individuals like Rodriguez who advance their greedy desires at the expense of others.”
According to court filings and the defendant’s admissions, Rodriguez and Carrion founded Technical Trading Team in the spring of 2020 and Rodriguez served as the company’s Chief Operating Officer. Rodriguez had sole trading authority over the vast majority of the nearly $5 million raised by Technical Trading Team from over 20 individual investors. Rodriguez and Carrion promised investors annual investment returns ranging from 18% to 24% and convinced investors to invest based on a number of material misrepresentations. Rodriguez and Carrion promised investors that they were making a safe investment; in reality, Rodriguez disregarded numerous safeguards that he promised investors were in place to protect their investments. For example, though Rodriguez and Carrion promised investors that Technical Trading Team had a “loss reserve account” comprised of funds that would not be traded and could be used to repay investors in the event of market losses, no such “loss reserve account” ever existed. Rodriguez also promised investors that Technical Trading Team would never expose more than 1% of Technical Trading Team investors’ funds to market risk at any given time, only to ignore that safeguard as well. Further, Rodriguez promised investors that Technical Trading Team would not hold trading positions open overnight, which Rodriguez ignored on multiple occasions, including once holding a trade open from February 2021 until April 2022, resulting in a catastrophic loss of over $150,000, representing approximately 12.61% of Technical Trading Team’s assets. Once it became clear to Rodriguez that Technical Trading Team could not pay its investors their promised returns using trading profits, Rodriguez turned Technical Trading Team into a Ponzi scheme and began using money from new investors to pay older investors their interest payments and principal redemptions.
The government’s case is being handled by the Office’s Business and Securities Fraud Section. Assistant United States Attorney Benjamin Weintraub is in charge of the prosecution, with assistance from Paralegal Specialist Liam McNett.
The Defendant:
JASON RODRIGUEZ
Age: 38
Bellerose, New YorkE.D.N.Y. Docket No. 24-CR-79
Five Individuals Charged in $20 Million Theft and Fraud Scheme Targeting Hardware and Home Improvement StoresRead the Press Release
A five-count indictment was unsealed earlier today in federal court in Brooklyn variously charging five defendants with conspiracy to commit wire fraud, conspiracy to commit bank fraud, bank fraud, access device fraud and conspiracy to commit money laundering. The charges arise from a more than two-year scheme to fraudulently acquire and resell over $20 million in building and construction materials, and appliances from home improvement and hardware stores throughout Brooklyn, Queens, Long Island and elsewhere. The defendants were arrested this morning and will be arraigned this afternoon before United States Magistrate Judge Seth D. Eichenholtz.
Joseph Nocella, Jr., United States Attorney for the Eastern District of New York, Matt McCool, Special Agent in Charge, United States Secret Service (USSS), and Jessica S. Tisch, Commissioner, New York City Police Department (NYPD), announced the arrests and charges.
“For these defendants, the tools of their trade were not hammers and nails, but fraud and deception. They enriched themselves by targeting programs designed for hard working consumers and small businesses to buy materials for construction and home improvement,” stated United States Attorney Nocella. “Today’s arrests serve as a warning to those who try to profit from retail fraud: crime doesn’t pay.”
“The Secret Service is proud to help disrupt an alleged criminal syndicate that carried out an elaborate fraud scheme here in New York City, siphoning millions of dollars into its coffers through bad checks in order to procure construction-related materials for illegitimate resale," stated USSS Special Agent in Charge McCool. “I want to congratulate our agents and our partners at both the Eastern District of New York and the NYPD for their hard work in holding these criminals accountable.”
“These defendants allegedly deceived credit lenders with bogus bank checks to steal more than the $20 million of merchandise from hardware and home improvement businesses,” stated NYPD Commissioner Tisch. “Schemes like this don’t just affect retail corporations – they hurt honest consumers who rely on these programs to purchase trade supplies. I am thankful to the NYPD investigators, our federal partners at the United States Secret Service and HSI, and the U.S Attorney’s Office for shutting this scam operation down and holding these fraudsters accountable.”
As set forth in court filings, from approximately July 2023 until September 2025, the defendants and their co-conspirators opened, or caused others acting at their direction to open, hundreds of lines of credit that hardware and home improvement stores made available to customers through the stores’ partner banks. These lines of credit included traditional consumer credit cards, which were designed for individual consumers’ personal use at the stores, and commercial lines of credit, which were aimed primarily for small businesses to purchase goods at the stores. The defendants opened many of these credit lines in the names of other people or on behalf of shell companies that had recently been founded or incorporated, were created in the names of straw owners and/or had no legitimate business operations. To increase the credit limits on their credit lines, the defendants presented paper checks to the stores under the guise of pre-funding the accounts or paying for past purchases. In reality, these checks were linked to bank accounts that had insufficient funds to cover the amounts printed on the checks. Before the checks were rejected, however, the defendants purchased significant amounts of building and construction materials for delivery to their warehouses. In total, the defendants and their co-conspirators stole over $20 million in merchandise, much of which they resold to others. Profits of their scheme were then laundered to offshore bank accounts and used to finance the ongoing operations of their warehouses.
The charges in the indictment are allegations and the defendants are presumed innocent unless and until proven guilty. If convicted of the charges, the defendants each face up to 30 years in prison.
The government’s case is being handled by the Office’s Business and Securities Fraud Section. Assistant United States Attorney James R. Simmons is in charge of the prosecution, with assistance from Paralegal Specialist Asher Martin-Rosenthal.
The Defendants:
KAI XU
Age: 44
Queens, New YorkZHI BIN AN
Age: 56
Brooklyn, New YorkXIANG CHEN
Age: 39
Queens, New YorkSONGHAK LEE
Age: 35
Queens, New YorkKANG ZHANG
Age: 30
Queens, New YorkE.D.N.Y. Docket No. 25-CR-275 (RPK)
25-cr-275_indictment.pdfBrooklyn Man Convicted of Possession of a Makeshift Knife at the Metropolitan Detention CenterRead the Press Release
BROOKLYN, NY – Jordan Alston was convicted today in federal court in Brooklyn of possessing an object intended to be used as a weapon while an inmate at the Metropolitan Detention Center (the MDC). The verdict followed a three-day trial before United States Second Circuit Judge Denny Chin, sitting by designation. When sentenced, Alston faces up to five years in prison.
Joseph Nocella, Jr., United States Attorney for the Eastern District of New York and Bryan Miller, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives, New York Division (ATF) announced the verdict.
“It is clear from the defendant’s conviction for possessing this weapon that he is a danger to the community at large as well as inside a correctional institution,” stated United States Attorney Nocella. “Today’s verdict holds him accountable for his lack of respect for the law.”
“Today’s conviction highlights our commitment to holding violent offenders accountable — wherever they may be,” stated ATF Special Agent in Charge Miller. “Possessing weapons in custody threatens the safety of staff, inmates, and the justice system. ATF New York will continue working with our partners at EDNY USAO to protect our communities at every level.”
On May 31, 2025, while detained pending trial at the MDC for a separate charge for which he was acquitted, a Bureau of Prisons correctional officer conducted a pat-down search of Alston who appeared to be concealing an object in his waistband. The officer retrieved an 8-inch-long makeshift knife from the waistband of Alston’s pants.
The government’s case is being handled by the Office’s Organized Crime and Gangs Section. Assistant United States Attorney Tara B. McGrath is in charge of the prosecution with the assistance of Paralegal Specialist Amara Padilla.
The Defendant:
JORDAN ALSTON (also known as “Skiito”)
Age: 28
Brooklyn, New YorkE.D.N.Y. Docket No. 23-CR-510 (DC)
“LockerGoga,” “MegaCortex,” and “Nefilim” Ransomware Administrator Charged with Ransomware AttacksRead the Press Release
Earlier today, the U.S. District Court for the Eastern District of New York unsealed a superseding indictment charging Volodymyr Viktorovich Tymoshchuk — also known as deadforz, Boba, msfv, and farnetwork — a Ukrainian national, with serving as an administrator in the LockerGoga, MegaCortex, and Nefilim ransomware schemes.
“Volodymyr Tymoshchuk is charged for his role in ransomware schemes that extorted more than 250 companies across the United States and hundreds more around the world,” said Acting Assistant Attorney General Matthew R. Galeotti of the Justice Department’s Criminal Division. “In some instances, these attacks resulted in the complete disruption of business operations until encrypted data could be recovered or restored. This prosecution and today’s rewards announcement reflects our determination to protect businesses from digital sabotage and extortion and to relentlessly pursue the criminals responsible, no matter where they are located.”
“Tymoshchuk is a serial ransomware criminal who targeted blue-chip American companies, health care institutions, and large foreign industrial firms, and threatened to leak their sensitive data online if they refused to pay,” said U.S. Attorney Joseph Nocella Jr. for the Eastern District of New York. “For a time, the defendant stayed ahead of law enforcement by deploying new strains of malicious software when his old ones were decrypted. Today’s charges reflect international coordination to unmask and charge a dangerous and pervasive ransomware actor who can no longer remain anonymous.”
“Volodymyr Tymoshchuk repeatedly used ransomware attacks to target hundreds of companies in the United States and around the globe in attempts to extort victims,” said Assistant Director in Charge Christopher G. Raia of the FBI New York Field Office. “Today’s announcement should serve as warning, cyber criminals may believe they act with impunity while conducting harmful cyber intrusions, but law enforcement is onto you and will hold you accountable. The FBI along with our law enforcement partners will continue to scour the globe to bring to justice any individual attempting to use the anonymity of the internet to commit crime.”
“The criminals behind Nefilim ransomware may believe they can profit from extortion and data leaks, but they are wrong,” said Special Agent in Charge Christopher J. S. Johnson of the FBI’s Springfield Field Office. “The FBI is actively pursuing them to disrupt their operations and bring them to justice. We urge all organizations to report these attacks immediately — because every report helps us dismantle these networks and ensure cybercriminals are held accountable.”
As alleged in the superseding indictment, between December 2018 and October 2021, Tymoshchuk used the LockerGoga, MegaCortex, and Nefilim ransomware variants to encrypt computer networks in countries around the world, including in the Eastern District of New York, elsewhere in the United States, France, Germany, the Netherlands, Norway, and Switzerland. These ransomware attacks caused millions of dollars of losses, including damage to victim computer systems, remediation costs, and ransomware payments to the perpetrators. In these attacks, the perpetrators typically customized the ransomware executable file (the ransomware file responsible for encryption) for each ransomware victim. The customization allowed the ransomware actors to create a decryption key that could only decrypt the network of the specific victim. If a victim paid the ransom demand, the perpetrators would send a decryption tool, which enabled the victim to decrypt the computer files locked by the ransomware program.
Between July 2019 and June 2020, Tymoshchuk and his co‑conspirators are alleged to have compromised the networks of more than 250 victim companies in the United States and hundreds of other companies around the world with LockerGoga and MegaCortex. However, many of these extortion attempts were unsuccessful because law enforcement often notified victims that their networks had been compromised before Tymoshchuk and his co-conspirators were able to deploy the ransomware. Subsequently, from July 2020 through October 2021, Tymoshchuk is alleged to have been one of the administrators of the Nefilim ransomware strain. Tymoshchuk and the other Nefilim administrators provided other Nefilim ransomware affiliates, including co‑defendant Artem Stryzhak, who was extradited from Spain and faces charges in the Eastern District of New York, with access to the Nefilim ransomware in exchange for 20 percent of the ransom proceeds extorted from Nefilim victims.
In September 2022, as part of an international coordinated effort against LockerGoga and MegaCortex ransomware, decryption keys associated with those ransomware variants were made available to the public via the “No More Ransomware Project,” an initiative to empower ransomware victims to decrypt encrypted computers without paying a ransom. These decryption keys enabled compromised victim companies and institutions to recover data previously encrypted with LockerGoga and MegaCortex ransomware.
Tymoshchuk is charged with two counts of conspiracy to commit fraud and related activity in connection with computers, three counts of intentional damage to a protected computer, one count of unauthorized access to a protected computer, and one count of transmitting a threat to disclose confidential information.
The FBI is investigating this case.
Trial Attorney Brian Z. Mund of the Justice Department’s Computer Crime and Intellectual Property Section (CCIPS) and Assistant U.S. Attorneys Alexander F. Mindlin and Ellen H. Sise for the Eastern District of New York are prosecuting the case.
The Justice Department’s Office of International Affairs provided critical assistance, as did the FBI’s Legal Attachés, authorities in France, Czech Republic, Germany, Lithuania, Luxembourg, Netherlands, Norway, Switzerland, and Ukraine, and Europol and Eurojust via ICHIP The Hague.
CCIPS investigates and prosecutes cybercrime in coordination with domestic and international law enforcement agencies, often with assistance from the private sector. Since 2020, CCIPS has secured the conviction of over 180 cybercriminals, and court orders for the return of over $350 million in victim funds.
Concurrent with the unsealing of the superseding indictment, the U.S. Department of State’s Transnational Organized Crime (TOC) Rewards Program is offering a rewards totaling up to $11 million for information leading to the arrest and/or conviction or location of Tymoshchuk or his conspirators.
Anyone with information on these malicious cyber actors, or associated individuals or entities, should contact the FBI via phone at +1-917-242-1407 or by email at [email protected]. If you are in the United States, you can also contact your local FBI field office. If outside the United States, you can visit the nearest U.S. embassy. More information about the TOC reward offer is located on the State Department website.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Ransomware Administrator Charged with Cybercrimes for Deploying “Lockergoga,” “Nefilim,” and “Megacortex” Ransomware Strains Against Hundreds of VictimsRead the Press Release
BROOKLYN, NY – Earlier today, a superseding indictment was unsealed charging Volodymyr Tymoshchuk, also known as “deadforz,” “Boba,” “msfv,” and “farnetwork,” a Ukrainian national, for his role in international ransomware schemes. Tymoshchuk is not in U.S. custody.
Joseph Nocella, Jr., United States Attorney for the Eastern District of New York; Matthew R. Galeotti, Acting Assistant Attorney General of the Justice Department’s Criminal Division; Christopher Raia, Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI); and FBI Special Agent in Charge Christopher J.S. Johnson, Springfield, Illinois Field Office, announced the superseding indictment.
“Tymoshchuk is a serial ransomware criminal who targeted blue-chip American companies, health care institutions, and large foreign industrial firms, and threatened to leak their sensitive data online if they refused to pay,” stated United States Attorney Nocella. “For a time, the defendant stayed ahead of law enforcement by deploying new strains of malicious software when his old ones were decrypted. Today’s charges reflect international coordination to unmask and charge a dangerous and pervasive ransomware actor who can no longer remain anonymous.”
“Volodymyr Tymoshchuk is charged for his role in ransomware schemes that extorted more than 250 companies across the United States and hundreds more around the world,” stated Acting Assistant Attorney General Galeotti. “In some instances, these attacks resulted in the complete disruption of business operations until encrypted data could be recovered or restored. This prosecution and today’s rewards announcement reflects our determination to protect businesses from digital sabotage and extortion and to relentlessly pursue the criminals responsible, no matter where they are located.”
“Volodymyr Tymoshchuk repeatedly used ransomware attacks to target hundreds of companies in the United States and around the globe in attempts to extort victims. Today’s announcement should serve as warning, cyber criminals may believe they act with impunity while conducting harmful cyber intrusions, but law enforcement is onto you and will hold you accountable,” stated FBI Assistant Director in Charge Raia. “The FBI along with our law enforcement partners will continue to scour the globe to bring to justice any individual attempting to use the anonymity of the internet to commit crime.”
“The criminals behind Nefilim ransomware may believe they can profit from extortion and data leaks, but they are wrong. The FBI is actively pursuing them to disrupt their operations and bring them to justice. We urge all organizations to report these attacks immediately—because every report helps us dismantle these networks and ensure cybercriminals are held accountable,” stated Springfield, Illinois Special Agent in Charge Johnson.
As alleged in the superseding indictment, between December 2018 and October 2021, LockerGoga, MegaCortex, and Nefilim ransomware were used to encrypt computer networks in countries around the world, including against victims in the Eastern District of New York and across the United States, France, Germany, the Netherlands, Norway, and Switzerland. These ransomware attacks caused tens of millions of dollars of losses, resulting both from damage to victim computer systems and from ransomware payments to the perpetrators. The ransomware attacks would lock up a victim’s computer files, and only if the victim paid the ransom demand the perpetrators would send a decryption tool that enabled the victim to decrypt and regain access to those files.
The LockerGoga and Mega Cortex Ransomware Variants
Tymoshchuk and his co-conspirators initially gained unauthorized access to victim networks in various ways, including through use of hacking tools to identify security vulnerabilities, perform brute-force password cracking attacks, and retrieve stored password credentials. At times, the co-conspirators also purchased compromised access credentials to victim networks. Tymoshchuk and his co-conspirators then used additional hacking tools to explore the victim networks, obtain persistent remote access, move laterally (i.e., access other systems within each computer or network) and escalate privileges (i.e., gain greater authority over the computer or network).
After gaining sufficient access to the victims’ networks, the co-conspirators deployed either LockerGoga or MegaCortex ransomware. Between approximately July 2019 and June 2020, Tymoshchuk and his co‑conspirators compromised the networks of more than 250 victim companies in the United States and hundreds of other companies around the world. Many of these extortion attempts failed due to the vigilance of law enforcement officials, who notified victims that their networks had been compromised before Tymoshchuk could deploy ransomware.
In September 2022, as part of an international coordinated effort, decryption keys associated with LockerGoga and MegaCortex ransomware were made available to the public via the “No More Ransomware Project.” These decryption keys enabled compromised victim companies and institutions to recover data previously encrypted with LockerGoga and MegaCortex ransomware.
The Nefilim Ransomware Variant
From approximately July 2020 through October 2021, Tymoshchuk was one of the administrators of Nefilim ransomware, a “ransomware as a service” enterprise that provided ransomware tools to affiliates in turn for a percentage of the extortionate payments they collected. Among Tymoshchuk’s affiliates was his co‑defendant Artem Stryzhak, who paid Tymoshchuk 20 percent of the ransom proceeds he collected. In exchange, Tymoshchuk gave Stryzhak access to the Nefilim ransomware “panel,” an online platform for Nefilim affiliates to access the ransomware.
Tymoshchuk at times described his preferred ransomware targets as companies located in the United States, Canada, or Australia with more than $100 million in annual revenue. In one exchange with Stryzhak in or about July 2021, Tymoshchuk encouraged him to target companies in these countries with more than $200 million in annual revenue. Tymoshchuk researched companies to target, using online databases to gather information about the victim companies’ net worth, size, and contact information.
After gaining sufficient access to the victims’ networks, Tymoshchuk and his co-conspirators stole data in furtherance of their scheme to extort ransom payments from them. Nefilim ransom notes typically threatened the victims that unless they came to an agreement with the ransomware actors, the stolen data would be published on publicly accessible “Corporate Leaks” websites, which were maintained by Nefilim administrators.
The charges in the superseding indictment are allegations and the defendants are presumed innocent unless and until proven guilty. Stryzhak, who was extradited from Spain in April 2025 to the Eastern District of New York, is awaiting trial.
Concurrent with the unsealing of the superseding indictment, the U.S. Department of State’s Transnational Organized Crime (TOC) Rewards Program is offering a reward of up to $11 million for information leading to the leading to the arrest and/or conviction or location of Tymoshchuk or his conspirators.
Anyone with information on these malicious cyber actors, or associated individuals or entities, please contact the FBI via phone at +1-917-242-1407 or by email at [email protected]. If you are in the United States, you can also contact the local FBI field office. If outside the United States, you can visit the nearest U.S. embassy. More information about this TOC reward offer is located on the State Department website.
The government’s case is being handled by the Office’s National Security and Cybercrime Section. Assistant United States Attorneys Alexander F. Mindlin and Ellen H. Sise, along with Trial Attorney Brian Mund of the Justice Department’s Computer Crime and Intellectual Property Section, are in charge of the prosecution, with assistance from Paralegal Specialist Rebecca Roth.
The Justice Department’s Office of International Affairs provided critical assistance in this case, as did the FBI’s Legal Attachés abroad and authorities in France, Czech Republic, Germany, Lithuania, Luxembourg, Netherlands, Norway, Romania, Switzerland, and Ukraine, as well as Europol and Eurojust via the Criminal Division’s International Computer Hacking and Intellectual Property (ICHIP) The Hague.
The Defendants:
VOLODYMYR VIKTOROVYCH TYMOSHCHUK (also known as “deadforz,” “Boba,” “msfv,” and “farnetwork”)
Age: 28
Kiev, UkraineARTEM ALEKSANDROVYCH STRYZHAK
Age: 35
Barcelona, SpainE.D.N.Y. Docket No. 23-CR-324 (PKC)
23-cr-324_-_superseding_indictment.pdfLas Vegas Man Sentenced to 84 Months in Prison for $1.4 Million Cannabis and Restaurant Investment Fraud SchemeRead the Press Release
Earlier today, in federal court in Central Islip, Elias Ghanem II, who previously resided in Las Vegas, Nevada, was sentenced by United States District Judge Gary R. Brown to 84 months’ imprisonment for engaging in a fraudulent scheme to solicit investments in purported cannabis and restaurant entities and defrauding investors of approximately $1.4 million. The Court also ordered Ghanem to pay approximately $1.4 million in restitution to the victims of his crimes. Ghanem pleaded guilty to wire fraud in February 2025.
The sentence was announced by Joseph Nocella, Jr., United States Attorney for the Eastern District of New York and Christopher G. Raia, Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI).
“Today, the defendant received just punishment for defrauding more than a dozen investors, including a retired law enforcement officer whose arm was amputated due to gunshot wounds,” stated United States Attorney Nocella. “Our Office and our law enforcement partners will continue to pursue justice for victims of financial crime who fall prey to individuals like Ghanem who advance their greedy desires at the expense of others.”
“Elias Ghanem shamelessly stole more than one million dollars from investors of his companies to fund personal purchases,” stated FBI Assistant Director in Charge Raia. “Ghanem prioritized selfish greed and preyed on the wallets of his victims. The FBI will never tolerate any individual who utilizes lies and deceit to enrich themselves.”
According to court filings and the defendant’s admissions, between approximately September 2018 through October 2019, Ghanem solicited approximately $1 million from investors in Viva Capital Ventures, LLC (Viva), a purported cannabis distribution and manufacturing company that Ghanem claimed to operate. One of Ghanem’s Viva investors was a retired police officer who invested around $280,000 he received after he was shot multiple times during an armored car robbery, which led to his arm being amputated. Although Ghanem told the Viva investors that he would use their monies for business-related expenses such as those related to applications for cannabis distribution licenses in various states, Ghanem never applied for such licenses and instead diverted nearly $1 million to fund a lavish lifestyle, including the purchase of a luxury waterfront home in Babylon, New York, and for personal expenses, including the partial repayment of a personal loan, and payments of restitution obligations that were imposed to resolve prior criminal charges against him in Nevada.
In a second scheme, Ghanem solicited approximately $400,000 from investors in the Friends and Family Hospitality Group (FFHG), a purported restaurant entity that Ghanem claimed he operated. Although Ghanem told the investors that he would use their funds to finance the establishment of a New York City restaurant, he instead used approximately $200,000 to purchase jewelry and lease a Florida condominium. In response to demands for repayment, Ghanem issued one of the FFHG investors a series of checks that bounced for insufficient funds.
The government’s case is being handled by the Criminal Section of the Office’s Long Island Division. Assistant United States Attorneys Bradley T. King and Andrew Wang are in charge of the prosecution, with assistance from Paralegal Specialist Samantha Schroder and Legal Assistant Danielle Casey.
The Defendant:
ELIAS GHANEM II
Age: 38
Las Vegas, NevadaE.D.N.Y. Docket No. 22-CR-520 (S-1) (GRB)
Estonian National Extradited to the United States to Face Charges for Helping Russian Military Acquire U.S ElectronicsRead the Press Release
BROOKLYN, NY – Andrey Shevlyakov was arraigned this afternoon before United States Magistrate Judge Peggy Kuo at the federal courthouse in Brooklyn. He is charged in an indictment with conspiracy and seventeen other counts related to an international procurement scheme to source U.S.-made electronics and technology for the Russian government and military. Shevlyakov, an Estonian national, was arrested in Estonia on a provisional arrest warrant issued from the Eastern District of New York. He was extradited from Estonia to the United States on August 28, 2025.
Joseph Nocella, Jr., United States Attorney for the Eastern District of New York; John A. Eisenberg, Assistant Attorney General for the National Security Division; Douglas A. Williams, Jr., Special Agent in Charge, FBI Houston; and Trey McClish, Special Agent in Charge of the U.S. Department of Commerce, Bureau of Industry and Security – Office of Export Enforcement’s Dallas Field Office announced the extradition.
“As alleged, the defendant supplied the Russian military with sophisticated electronics after misleading U.S. companies,” stated United States Attorney Nocella. “Our Office and our law enforcement partners will continue to use every tool at our disposal to disrupt Russia’s illegal procurement of U.S. technology that threatens our national security and the security of our allies.”
Mr. Nocella expressed his appreciation to the Department of Justice’s Office of International Affairs and the Estonian Internal Security Service (KAPO) for their valuable assistance in securing the arrest and extradition of Shevlyakov.
“We welcome Mr. Shevlyakov to the United States to face justice,” stated Special Agent in Charge Williams. “His illegal acquisition of U.S. semiconductor technology on behalf of the Russian military endangered U.S. national security, which the FBI fights so hard to protect. This case highlights Russia’s willingness to break U.S. laws to modernize its military and weapon systems with U.S. technology. We’re grateful to all our international partners who made Shevlyakov’s capture and extradition possible."
As alleged in the indictment and other public court filings, the defendant engaged in a years-long effort to evade U.S. export controls. His scheme involved procuring and delivering sensitive U.S. technology to end-users in Russia, including defense contractors and Russian government agencies. The defendant was added to the U.S Department of Commerce, Bureau of Industry and Security’s entity list, meaning that he was prohibited from acquiring any items from the United States without permission from the Department of Commerce. To evade these prohibitions, the defendant used a series of shell companies to order electronics and other items from U.S.-based suppliers. He also misled U.S. suppliers about the ultimate destination for the sensitive electronics they provided to him.
Over the course of his scheme, the defendant procured hundreds of thousands of dollars’ worth of sensitive electronics. The items acquired by the defendant included low-noise pre-scalers and synthesizers used to conduct high-frequency communications. He also obtained analog-to-digital converters which are used in defense systems including avionics, missiles, and electronic warfare systems. The defendant communicated with Russian defense contractors and telecommunication companies about these sensitive items. He also traveled extensively between Russia and Estonia to deliver the items he had obtained.
On one occasion, the defendant was caught smuggling goods into Russia by customs authorities in Finland. When stopped at the Russian border, the defendant’s car was searched and authorities found electronics and semiconductors dispersed among groceries and luggage and hidden in several other places, including the car’s spare tire compartment.
The charges in the indictment are merely allegations and the defendant is presumed innocent unless and until proven guilty. If convicted, the defendant faces a maximum of 20 years’ imprisonment.
The government’s case is being handled by the Office’s National Security and Cybercrime Section. Assistant United States Attorneys Alexander Mindlin and Gilbert M. Rein are in charge of the prosecution, along with Trial Attorney Christopher Cook of the National Security Division’s Counterintelligence and Export Control Section.
The Defendant:
ANDREY SHEVLYAKOV
Age: 48
Tallinn, EstoniaE.D.N.Y. Docket No. 22-CR-490 (RPK)
Smuggler of Egyptian Antiquities Sentenced to PrisonRead the Press Release
Earlier today, in federal court in Brooklyn, Ashraf Omar Eldarir was sentenced by United States District Judge Rachel P. Kovner to six months in prison for smuggling Egyptian antiquities into the United States through John F. Kennedy International Airport. During the course of this investigation, more than 600 Egyptian artifacts were recovered after having been smuggled through Eldadir’s smuggling network. Eldarir previously pleaded guilty in February 2025 to four counts of smuggling.
Joseph Nocella, Jr., United States Attorney for the Eastern District of New York; Ricky J. Patel, Special Agent in Charge, Homeland Security Investigations, New York (HSI); and Francis J. Russo, Director of Field Operations, U.S. Customs and Border Protection, New York Field Office (CBP), announced the sentence.
“The defendant looted Egypt’s cultural treasures and lied to U.S. Customs about them as part of a web of deception he spun to illegally fill his pockets with cash,” stated United States Attorney Nocella. “Those who steal cultural treasures of other countries and smuggle them into the United States should know that they will be held accountable for their crimes. We commend our HSI and CBP partners for their diligent and important work in this case and look forward to repatriating to Egypt the recovered antiquities.”
“Safeguarding cultural heritage is an often-overlooked yet important aspect of border security, as smugglers frequently exploit similar vulnerabilities to transport stolen artifacts and other illicit goods,” stated CBP Director of Field Operations Russo. “In this case, the profit-driven defendant lied during border inspection to conceal priceless antiquities, but the vigilance of CBP officers uncovered the truth. Every day, our officers work tirelessly to protect both our security and the cultural heritage of nations worldwide, and while doing so, uncover other sophisticated smuggling plots. Strong partnerships with agencies like HSI and the U.S. Attorney’s Office are critical to this mission, and CBP remains committed to preserving history while enforcing the law.”
As set forth in the indictment and in other court filings, Eldarir was a prolific trafficker of ancient Egyptian artifacts. On at least four separate occasions from April 2019 to January 22, 2020, Eldarir smuggled ancient Egyptian artifacts into the United States. Each time, Eldarir used fake provenances to sell those artifacts at U.S.-based auction houses. Provenances are documents reflecting the history of ownership and custody of artifacts, which are used to establish that the artifacts are genuine and that they were not illegally excavated or stolen.
On January 22, 2020, Eldarir, travelling from Egypt, arrived at JFK Airport and falsely declared to CBP that he was carrying goods valued at only $300. When CBP officers opened Eldarir’s three checked suitcases, they found the suitcases filled with 590 valuable artifacts that were bubble and foam-wrapped. When the wrapping was opened, loose sand and dirt spilled out of the packaging, indicating that the artifacts had been recently excavated. Among the items recovered by law enforcement officers were gold amulets from a funerary set and wooden tomb model figures with linen garments dating to approximately 1900 BCE. Eldarir was also in possession of a kit of materials used to fabricate documentation for the stolen items. Further investigation following Eldarir’s arrest at JFK Airport led to the recovery of additional illegally imported artifacts that have since been forfeited, along with the 590 artifacts seized at the time of Eldarir’s arrest.
Assistant United States Attorneys William P. Campos and Nomi Berenson are in charge of the prosecution with the assistance of Paralegal Specialist Amara Padilla. Assistant U.S. Attorney Laura D. Mantell of the Office’s Asset Recovery Section is handling forfeiture matters.
The Defendant:
ASHRAF OMAR ELDARIR
Age: 52
Brooklyn, NYE.D.N.Y. Docket No. 20-CR-243 (S-2) (RPK)
MS-13 Gang Associate Sentenced to 45 Years in Prison for the Murder of 17-Year-Old Victim in Kissena Park in QueensRead the Press Release
Juan Amaya-Ramirez, also known as “Cadaver,” an associate of the La Mara Salvatrucha, also known as “MS-13,” a transnational criminal organization, was sentenced yesterday, in federal court in Brooklyn, by United States District Judge LaShann DeArcy Hall to 45 years in prison for his role in the April 23, 2018 murder of 17-year-old Andy Peralta in Kissena Park in Queens, New York. Amaya-Ramirez and co-defendant Oscar Flores-Mejia, also known as “Chamuco,” who is also an associate of the MS-13 gang, pleaded guilty to the murder in September 2024. Flores-Mejia is awaiting sentencing.
Joseph Nocella, Jr., United States Attorney for the Eastern District of New York, Christopher G. Raia, Assistant Director in Charge, Federal Bureau of Investigation (FBI), and Ricky J. Patel, Special Agent in Charge, Homeland Security Investigations, New York (HSI) announced the sentence.
“The senselessness of this murder is matched only by its brutality,” said United States Attorney Nocella. “The defendants lured Andy Peralta to a secluded part of Kissena park where they beat him mercilessly before Amaya-Ramirez choked him to death and Flores-Mejia hacked him with a knife. The murder of this young victim is a chilling reminder of MS-13’s callous disregard for human life. Bringing those who commit violent crimes to justice is one of our Office’s highest priorities.”
“Juan Amaya-Ramriez, an MS-13 associate, brutally attacked and murdered Andy Peralta out of senseless retaliation,” stated FBI Assistant Director in Charge Raia. “The defendant unjustly sentenced Peralta to a horrific death due to a false perception of his status as a rival. The FBI continues to make significant strides throughout Operation Summer Heat to hold accountable gang members maliciously acting as the judge, jury, and executioner to promote their operations.”
“For far too long, senseless gang violence has plagued our neighborhoods and devastated families,” stated HSI Special Agent in Charge Patel. “Andy Peralta was viciously beaten, stabbed, and strangled to death by savages whose sentences now reflect the seriousness of their crimes. Together with our law enforcement partners, HSI New York will not stand by as our streets are overrun by violent gang members. The eradication of gang violence on Long Island and throughout the state remains an utmost priority for HSI New York and our law enforcement partners.”
As proved at a hearing in connection with codefendant Leyla Carranza’s sentencing, the defendants sought to murder Peralta because they believed he was associated with the 18th Street gang, an MS-13 rival. Flores-Mejia found a video online that depicted Peralta, who the defendants did not know, briefly flashing a sign associated with the 18th Street gang. This was enough in the defendants’ eyes to mark him for death. Flores-Mejia recruited a 16-year-old boy to help kill Peralta, and Amaya-Ramirez’s then-girlfriend Leyla Carranza was recruited to befriend Peralta and lure him to his death in the park.
The day of the murder, Flores-Mejia bought black winter gloves to be used in the attack and carried a knife. Carranza messaged Peralta and then took him to a predetermined location in Kissena Park. Amaya-Ramirez, Flores-Mejia and their 16-year-old accomplice were waiting. Flores-Mejia gave a signal, and the men attacked Peralta. They beat Peralta until they were exhausted. Peralta got up, but Flores-Mejia kicked Peralta down. Amaya-Ramirez then began strangling Peralta while Flores-Mejia was stomping on his head. Peralta begged for his life and called out for his mother and father. Flores-Mejia put dirt in his mouth to silence him and Amaya-Ramirez choked him to death. Flores-Mejia then stabbed Peralta in the back and slashed his tattoo of his girlfriend’s name.
The men then took a photograph of themselves posing over Peralta’s lifeless body and flashing MS-13 hand signs. They then stole Peralta’s money and dragged his body to a small body of water, where he was found the following day.
Today’s sentencing is the latest in a series of federal prosecutions by the United States Attorney’s Office for the Eastern District of New York targeting members of MS-13. MS-13’s leadership is based in El Salvador and Honduras, but the gang has thousands of members across the United States. Since 2003, hundreds of MS-13 members, including dozens of clique leaders, have been convicted on federal felony charges in the Eastern District of New York. A majority of those MS-13 members have been convicted on federal racketeering charges for participating in murders, attempted murders, and assaults. Since 2010, this Office has obtained indictments charging MS-13 members with carrying out more than 45 murders in the district and has convicted dozens of MS-13 leaders and members in connection with those murders. These prosecutions are the product of investigations led by our law enforcement partners including HSI and the FBI’s Safe Streets Task Force, comprising agents and officers of the FBI and NYPD.
The government’s case is being handled by the Office’s Organized Crime & Gangs Section. Assistant United States Attorneys Nadia E. Moore, Jonathan Siegel, and Anna L. Karamigios are in charge of the prosecution.
The Defendant:
JUAN AMAYA-RAMIREZ (also known as “Cadaver”)
Age: 27
Fresh Meadows, QueensDefendant Awaiting Sentencing:
OSCAR FLORES-MEJIA (also known as “Chamuco”)
Age: 25
Elmhurst, QueensDefendant Previously Sentenced:
LEYLA CARRANZA
Age: 24
Richmond, VirginiaE.D.N.Y. Docket No. 20-CR-228 (LDH)
Two Investment Fund Manager Sales Team Leaders Plead Guilty to Pre-IPO Fraud SchemeRead the Press Release
Earlier today, in federal court in Brooklyn, Enrico Carini, also known as “Ed,” pleaded guilty to conspiracy to commit securities fraud and investment adviser fraud in connection with his role in a multi-million dollar investment fraud scheme. Co-defendant Caner Otar, also known as “John,” pleaded guilty to conspiracy to commit securities fraud on August 25, 2025 in connection with his role in the same scheme. Both proceedings were held before United States District Judge Carol B. Amon. When sentenced, Carini faces a maximum sentence of 10 years’ imprisonment, restitution, and forfeiture of cash and assets collectively valued at more than $430,000, including several luxury watches. Otar faces a maximum sentence of five years’ imprisonment, restitution, and $400,000 in forfeiture.
Joseph Nocella, Jr., United States Attorney for the Eastern District of New York and Christopher G. Raia, Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI) announced the guilty pleas.
“Protecting investors from fraudulent schemes is a core mission of our Office,” stated United States Attorney Nocella. “These defendants used a series of lies to entice unsuspecting investors, and to enrich themselves and their co-conspirators along the way. As demonstrated by these guilty pleas, our Office will uncover and vigorously prosecute fraudulent schemes that undermine the market for private securities.”
Mr. Nocella expressed his appreciation to the Securities and Exchange Commission (SEC), Washington, D.C. Home Office, for its significant cooperation and assistance during the investigation.
“Carini, Otar, and others at Max Infinity swindled more than $60 million from investors to divert towards personal finances,” stated FBI Assistant Director in Charge Raia. “Along with other conspirators, these defendants actively manipulated their clients through rehearsed lies of reassurances and success to generate an unlawful investment stream. The FBI remains determined to protect the integrity of our city’s economic infrastructure and investors from fraudulent tactics.”
As set forth in court filings and facts presented during the plea hearing, Carini and Otar were sales team leaders for Max Infinity Management LLC, Elder Fund Management LLC, and a related series of funds (Max Infinity). Max Infinity wasa New York City-based manager of investment funds that purported to buy and sell stock issued by privately held companies that anticipated an initial public offering (IPO), including well-known companies like Stripe, Chime, Instacart, and Flexport. Carini and Otar made numerous misstatements to Max Infinity investors, including by falsely representing that they did not make money on investments until investors profited, when in fact they received commissions on each investment they solicited. Carini and Otar also falsely represented to investors that the company and its investment funds were registered with the SEC. Along with other company salespeople, Carini and Otar utilized scripts that falsely assured investors that the firm had an impressive track record of success in prior IPO deals when, in reality, Max Infinity had no such previous investments. In total, Max Infinity raised more than $60 million from investors through false and misleading promises and high-pressure sales tactics.
Charges against Carini and Otar’s co-defendants remain pending. Trial for the co-defendants is scheduled for January 12, 2026. They are presumed innocent unless and until proven guilty.
The government’s case is being handled by the Office’s Business and Securities Fraud Section. Assistant United States Attorneys Sarah M. Evans, Eric Silverberg, Lorena Michelen, and Nicholas M. Axelrod are in charge of the prosecution, with assistance from Paralegal Specialists Liam McNett and Timothy Migliaro.
Defendants Who Pleaded Guilty:
ENRICO CARINI (also known as “Ed”)
Age: 40
Staten Island, New YorkCANER OTAR (also known as “John”)
Age: 38
Brooklyn, New YorkCo-Defendants Awaiting Trial:
JOHN CANGIALOSI
Age: 44
Manalapan, New JerseyPETER GIRGIS
Age: 44
Staten Island, New YorkGENE SARABELLA (also known as “Jerry”)
Age: 37
Monroe, New JerseyE.D.N.Y. Docket No. 24-CR-363 (CBA)
Co-Founder of the Sinaloa Cartel, Ismael “El Mayo” Zambada Garcia, Pleads Guilty in Brooklyn to Engaging in a Continuing Criminal Enterprise and Other Drug-Related ChargesRead the Press Release
BROOKLYN, NY — Ismael Zambada Garcia, also known as “El Mayo,” pleaded guilty today to being a principal leader of a continuing criminal enterprise — the Sinaloa Cartel (the Cartel), one of the most violent and powerful drug trafficking organizations in the world — in addition to Racketeer Influenced and Corrupt Organizations (RICO) charges. Today’s proceeding was held before United States District Judge Brian M. Cogan.
When sentenced, Zambada Garcia will face a mandatory minimum term of life in prison without the possibility of parole for leading a continuing criminal enterprise, and up to life imprisonment without the possibility of parole on the RICO count. As part of the plea agreement, Zambada Garcia also agreed to the entry of a $15 billion forfeiture money judgment.
Zambada Garcia was previously charged by indictments filed in the Eastern District of New York, United States v. Zambada Garcia, et al., 09-CR-466 (EDNY) (the “EDNY/SDFL/NDDS Indictment”) and in the Western District of Texas, United States v. Zambada Garcia, et al., 12-CR-849 (WDTX) (“the WDTX Indictment”), as well as in the District of Columbia (03-CR-34; 03-CR-331 (DDC)); the Northern District of Illinois (09-CR-383 (NDIL)); the Southern District of California (14-CR-658 (SDCA)); and the Central District of California (15-CR-566 (CDCA)).
The plea to the charges in the EDNY/SDFL/NDDS Indictment are the result of a joint prosecution by the U.S. Attorney’s Offices in Brooklyn and Miami and the Narcotic and Dangerous Drug Section of the Criminal Division.
Pursuant to a plea agreement, Zambada Garcia agreed to the transfer of the WDTX Indictment for plea and sentencing in the Eastern District of New York. Zambada Garcia will thus be held accountable in the Eastern District of New York for the criminal conduct in both indictments. The remaining indictments will be dismissed at the time of sentencing.
The EDNY/SDFL/NDDS Indictment charged Zambada Garcia with, among other things, being a principal leader of a continuing criminal enterprise, in violation of 21 U.S.C. § 848, from January 1989 through January 2024. The WDTX Indictment charged Zambada Garcia with, among other things, RICO conspiracy for his participation in money laundering, murder and drug conspiracies, and violations of state law for murder and kidnapping for conduct between January 1, 2000 through April 11, 2012.
Zambada Garcia’s rise to power began with the Cartel’s inception and ended with his arrest in July 2024. Previously known as the Mexican Federation, the Cartel is a drug trafficking organization based in Sinaloa, Mexico, that has since approximately the late 1980s imported lethal quantities of narcotics—including, among others, cocaine, heroin, methamphetamine, and fentanyl—into the United States and laundered billions of dollars in drug proceeds back to Mexico.
The Cartel’s operations initially focused on cocaine distribution based on cooperative arrangements and close coordination with South American sources of supply and distribution networks. This changed in the 2000s when the Colombians, seeing increased law enforcement activity, started to abandon their United States distribution businesses in favor of permitting Mexican traffickers to invest in cocaine shipments at wholesale prices, which those Mexican traffickers would then distribute in the United States. As a result, Mexican traffickers and the Cartel began to take a more integral role in moving cocaine from Colombia into and throughout the United States. Under Zambada Garcia’s leadership, the Cartel also recently branched out into the production and trafficking of fentanyl, including by purchasing fentanyl precursor chemicals from Chinese companies and producing many thousands of kilograms of fentanyl in laboratories both in rural areas and major cities in Mexico for distribution in the United States.
Ever since the Cartel’s expansion into the United States, its distribution networks have also supported money laundering efforts that have delivered billions of dollars in illegal profits generated from drugs sales in the United States back to the Cartel. Increased profits allowed the Cartel’s operations to grow a large-scale narcotics transportation network involving the use of land, air, and sea transportation assets, which eventually led to the Cartel shipping multi-ton quantities of cocaine from South America, through Central America and Mexico, and finally into the United States.
Zambada Garcia has devoted his efforts over decades to growing, increasing, and enhancing the power of the Cartel—and his individual power and position in the Cartel after his partner Joaquin “El Chapo” Guzman was captured. Under the defendant’s leadership, the Cartel has regularly used brutal violence, intimidation, and murder to silence potential witnesses and dissuade law enforcement from performing its duties. The defendant has operated with impunity at the highest levels of the Mexican drug trafficking world while being assured of his continued success and safety from arrest through his payment of bribes to foreign government officials and law enforcement officers. He controlled those corrupt officials and officers who protected his workers and drug shipments as his drugs were transported across Mexico and into the United States. Numerous witnesses have testified, including at trials held in the Eastern District of New York of El Chapo and corrupt former Mexican Secretary of Public Security Genaro García Luna, that corruption at all levels was necessary to allow the defendant’s criminal enterprise to function so effectively at such a large scale: from local police officers who escorted the drugs through Mexico, to corrupt officials who informed the Cartel of military actions, thwarted capture operations, and consulted with the Cartel about proceedings and investigations against it.
United States Attorney General Pamela Bondi; Joseph Nocella, Jr., United States Attorney for the Eastern District of New York; Matthew R. Galeotti, Acting Assistant Attorney General for the Criminal Division; Terrance C. Cole, Administrator, U.S. Drug Enforcement Administration (DEA); Todd M. Lyons, Acting Director, U.S. Immigration and Customs Enforcement (ICE); Kash Patel, Director, Federal Bureau of Investigation (FBI); Jason A. Reding Quiñones, United States Attorney for the Southern District of Florida; and Justin R. Simmons, United States Attorney for the Western District of Texas, announced the guilty plea.
“This foreign terrorist committed horrific crimes against the American people — he will now pay for those crimes by spending the rest of his life behind bars in an American prison. Today marks a crucial victory in President Trump’s ongoing fight to completely eliminate foreign terrorist organizations and protect American citizens from deadly drugs and violence,” stated Attorney General Pamela Bondi.
“With today’s guilty pleas, “El Mayo” Zambada Garcia and “El Chapo” Guzman, the two co-founders of the Sinaloa Cartel—one of the largest, most violent and most destructive cartels in history—will live out the rest of their days in United States federal prison cells without the possibility of parole,” stated United States Attorney for the Eastern District of New York Joseph Nocella. “Zambada Garcia has now been held accountable for the tons of illegal narcotics, including cocaine and fentanyl, that he and his organization trafficked for decades, and the murders and other acts of violence committed in furtherance of that enterprise. Today’s guilty plea were possible because of the work of law enforcement personnel in the United States, Mexico and elsewhere. We hope that their hard work and the pleas can provide a measure of solace to the countless victims of Zambada Garcia’s narcotics trafficking and violence and their families.”
“For decades, under El Mayo’s leadership, the Sinaloa Cartel made billions of dollars by importing poisonous drugs to the United States, flooding our streets with cocaine, heroin, and fentanyl,” stated Acting Assistant Attorney General Matthew R. Galeotti of the Justice Department’s Criminal Division. “With El Mayo’s conviction, the Department has now brought both founders of the Sinaloa Cartel to justice, and the growing list of international cartel leaders that have faced justice in American courtrooms sends an unequivocal message to those who seek to fill their shoes that the same fate awaits them if they do. Today’s guilty plea is a credit to the collaboration between the Criminal Division’s Narcotic and Dangerous Drug Section; the U.S. Attorney’s Offices for the Eastern District of New York, Southern District of Florida, and the Western District of Texas; and our law enforcement partners.”
“Ismael ‘El Mayo’ Zambada led one of the world’s deadliest cartels, pumping fentanyl, cocaine, heroin, and meth into our communities,” stated DEA Administrator Terrance Cole. “His guilty plea proves no cartel boss is beyond the reach of justice. By taking him down, we are protecting American families and cutting off a pipeline of poison. DEA and our partners will not stop until every cartel network is dismantled.”
“After years of painstaking work, ICE’s Homeland Security Investigations New York secured a superseding indictment last year charging Ismael Zambada with fentanyl trafficking,” stated Actingng ICE Director Todd M. Lyons. “Now, one of the world’s most prolific and dangerous drug traffickers is going to face justice for the lives he’s stolen and the illicit profits he’s raked in. This is more than a win for HSI. It’s a win for the American people.”
“Today’s plea is a proud moment for the FBI and its partners as the founders of a notoriously violent drug trafficking organization, one that engages in an array of illegal activity including murder and corruption, face the consequences of their actions,” stated FBI Director Kash Patel. “Our work does not end here. We will continue to relentlessly leverage everything at our disposal in our efforts to thwart the Sinaloa Cartel and put an end to their drug trafficking operations and the carnage that goes along with it.”
“After years of evading justice, Zambada Garcia has been brought to account. With his conviction, his reign of violence and terror is over,” stated U.S. Attorney Jason A. Reding Quiñones. “He will never again direct a cartel that fueled addiction, spread violence, and tore apart families and communities on both sides of our border. This outcome was made possible by the tireless work of our law enforcement partners in the United States and abroad, whose courage and persistence dismantled the Sinaloa Cartel’s operations and delivered long-overdue justice to its victims.”
“For decades, the Western District of Texas has been on the front lines in the fight against the Sinaloa Cartel,” stated United States Attorney for the Western District of Texas Justin R. Simmons. “Under Zambada Garcia’s leadership, the Sinaloa Cartel produced and trafficked thousands of kilograms of narcotics through our border, effectively infiltrating every city in our country, leading to thousands of deaths in our communities, imprisoning millions within the grey walls of addiction, and enriching himself in the process. Under Zambada Garcia’s leadership, the Sinaloa Cartel engaged in a years-long war with the Juarez Cartel, a war which directly affected not just the citizens of Juarez, Mexico, but also the citizens of El Paso, Texas, with multiple residents, including at least one U.S. citizen, being kidnapped, tortured, and killed by Sinaloa Cartel members. Now, like his co-conspirator El Chapo Guzman, Zambada Garcia will pay the price for a life of lawlessness, and using the ‘whole of government’ approach employed in this case, we will continue to systematically eradicate Mexican drug cartels and bring others to justice who enrich themselves to the detriment of Americans.”
“For decades, under El Mayo’s leadership, the Sinaloa Cartel made billions of dollars by importing poisonous drugs to the United States, flooding our streets with cocaine, heroin, and fentanyl,” said Acting Assistant Attorney General Matthew R. Galeotti of the Justice Department’s Criminal Division. “With El Mayo’s conviction, the Department has now brought both founders of the Sinaloa Cartel to justice, and the growing list of international cartel leaders that have faced justice in American courtrooms sends an unequivocal message to those who seek to fill their shoes that the same fate awaits them if they do. Today’s guilty plea is a credit to the collaboration between the Criminal Division’s Narcotic and Dangerous Drug Section; the U.S. Attorney’s Offices for the Eastern District of New York, Southern District of Florida, and the Western District of Texas; and our law enforcement partners.”
The government’s case is being handled by the Office’s International Narcotics and Money Laundering Section, and as part of the work of the Office’s Transnational Criminal Organizations Strike Force. Assistant United States Attorneys Francisco J. Navarro, Robert M. Pollack, Adam Amir, Lauren A. Bowman and Rebecca M. Urquiola are leading the prosecution for the Eastern District of New York. Assistant United States Attorneys Andrea Goldbarg and Monique Botero of the Southern District of Florida and Assistant United States Attorneys Antonio Franco and Kyle Myers of the Western District of Texas are leading the prosecution for their respective offices. Trial Attorneys Jayce Born and Kirk Handrich are leading the prosecution for the U.S. Department of Justice Criminal Division’s Narcotic and Dangerous Drug Section. The U.S. Attorneys’ Offices for the Northern District of Illinois, Central District of California, and Southern District of California provided substantial assistance. FBI, HSI, and DEA investigated the case.
This case is part of Operation Take Back America, a nationwide initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations (TCOs), and protect our communities from the perpetrators of violent crime. Operation Take Back America streamlines efforts and resources from the Department’s Organized Crime Drug Enforcement Task Forces (OCDETFs) and Project Safe Neighborhood (PSN).
The Defendant:
Ismael Zambada Garcia (also known as “El Mayo”)
Age: 75
MexicoE.D.N.Y. Docket Nos. 09-CR-466 (BMC) (S-5)
25-CR-262 (BMC)
Teacher’s Aide at New York City Public School Charged with Child Pornography OffensesRead the Press Release
Earlier today, at the federal courthouse in Brooklyn, Alejandro F. Santos was arraigned on an indictment charging him with transportation of child pornography and possession of child pornography. Santos was arrested on a complaint in July 2025. At the time of his arrest, Santos was employed by the New York City Department of Education as a teacher’s aide at a public school in the Bronx for children with disabilities. Today’s proceeding was held before United States Magistrate Judge Vera M. Scanlon.
Joseph Nocella, Jr., United States Attorney for the Eastern District of New York, Ricky J. Patel, Special Agent in Charge, Homeland Security Investigations, New York (HSI New York), and Francis J. Russo, Director of New York Field Operations, U.S. Customs and Border Patrol (CBP), announced the charges.
“The defendant, who held a position of trust as a teacher’s aide in a New York City elementary school, is charged with possessing photos and videos depicting horrific sexual abuse of children,” stated United States Attorney Nocella. “Our Office is committed to identifying and prosecuting individuals like the defendant who possess such images, which contribute to the depraved market for child pornography and the victimization of vulnerable minors.”
“The details of Alejandro Santos’ alleged crimes are among every parent’s worst nightmare. This defendant worked closely with young kids nearly every day over the course of 23 years. Protecting minors from individuals like this defendant is not only paramount, it’s personal. I implore any person who believes they have information related to crimes involving Santos to contact authorities as soon as possible,” stated HSI New York Special Agent in Charge Patel.
“This case underscores the vital role CBP plays in identifying potential criminal activity during border inspections,” stated CBP Director Russo. “Our officers are dedicated to protecting the public, safeguarding our children from exploitation, and collaborating with partner agencies to ensure thorough investigations are conducted.”
As alleged in court filings, on July 15, 2025, Santos arrived at John F. Kennedy International Airport on a flight from the Dominican Republic. While proceeding through customs, Santos was stopped by U.S. Customs and Border Protection officers pursuant to a law enforcement alert based on information that the defendant was likely in possession of child sex abuse material. Santos was escorted to an inspection area and provided the officers with his iPhone. A subsequent examination of that phone revealed thousands of photographs, videos and other files depicting the sexual exploitation of children, including infants and toddlers. Santos has worked for the New York City Department of Education for 23 years.
The charges in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty. If convicted of transporting of child sexual abuse material, Santos faces a mandatory minimum sentence of five years’ imprisonment and maximum sentence of 20 years’ imprisonment.
Anyone with information about criminality involving the defendant should contact HSI New York at [email protected]The government’s case is being handled by the Office’s General Crimes Section. Assistant United States Attorney Elizabeth D’Antonio is in charge of the prosecution.
The Defendant:
ALEJANDRO F. SANTOS
Age: 47
Bronx, New YorkE.D.N.Y. Docket No. 25-CR-258 (NRM)
Convicted Sex Offender Pleads Guilty to New Charges of Sexually Exploiting Children on Long IslandRead the Press Release
Earlier today, in federal courthouse in Central Islip, Anthony Pangallo, a previously convicted sex offender, pleaded guilty to sexual exploitation of a child and, during the plea hearing, admitted to soliciting and receiving sexually explicit images and videos from four young female victims. The proceeding was held before United States District Judge Joanna Seybert. When sentenced, Pangallo faces a mandatory minimum sentence of 25 years’ imprisonment and up to 50 years in prison.
Joseph Nocella, Jr., United States Attorney for the Eastern District of New York, and Christopher G. Raia, Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office, announced the guilty plea.
“Our Office will continue its relentless pursuit of sexual predators who target minors, and work to secure lengthy prison sentences to protect the public and vulnerable children from these depraved individuals,” stated U.S. Attorney Nocella. “This defendant’s conduct was especially abhorrent because, despite being a registered sex offender following a prior state conviction, he continued to target multiple young victims.”
Mr. Nocella expressed his appreciation to the New York City Police Department, the Westport Police Department and the Connecticut State’s Attorney’s Office, Stamford/Norwalk Judicial District.
“Anthony Pangallo pretended to be a teenager to gain the trust of prepubescent girls before sexually grooming and forcing elicit explicit content from them. As a registered sex offender, Pangallo has continued to repeatedly exploit and abuse minors to fulfill his own perverted desires,” stated FBI Assistant Director in Charge Raia. “The FBI maintains its steadfast commitment to protect our community’s vulnerable populations from sexual predators.”
As set forth in court filings and statements during today’s plea proceeding, Pangallo was initially arrested on May 20, 2021, at his residence in Rego Park, New York, on state charges filed in Westport, Connecticut. The Connecticut charges, which remain pending, involved a 15-year-old female victim, who Pangallo met online and manipulated into sending him sexually explicit images of herself. Subsequent investigation, which included a lawful search of Pangallo’s cellphone, revealed numerous online communications with other minor females from whom the defendant solicited sexually explicit images. Specifically, four children from Long Island—a 12-year-old and three 13-year-olds—were identified as victims, leading to the federal charges in this case. During his communications with these minors, Pangallo pretended to be a teenager, manipulated the victims into believing that they were in a relationship together, and then pressured them into sending him sexually explicit images and videos of themselves. At the time that he committed these crimes, Pangallo was registered as a sex offender due to a prior conviction in August 2009 for sexual assault of a minor in Atlantic City, New Jersey.
This prosecution is part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
The government’s case is being handled by the Criminal Section of the Office’s Long Island Division. Assistant United States Attorney Paul G. Scotti is in charge of the prosecution.
The Defendant:
ANTHONY PANGALLO
Age: 41
Rego Park, QueensE.D.N.Y. Docket No. 23-CR-233 (S-1)(JS)
Firearms Parts Dealer Arrested for Scheme to Illegally Export Weapons Parts and Firearms Accessories to KazakhstanRead the Press Release
BROOKLYN, NY – Earlier today, at the federal courthouse in Brooklyn, an eight-count indictment was unsealed charging Maxim Larin for his involvement in a scheme to illegally export weapons parts and accessories from the United States to other countries, including Kazakhstan, which serve as transshipment points for materials destined for Russia. The indictment charges Larin with conspiracy to defraud the United States, conspiracy to violate the Export Control Reform Act, conspiracy to violate the Arms Export Control Act, attempted violation of the Arms Export Control Act, smuggling goods from the United States, and submission of false export information. Larin was arrested this morning in Plantation, Florida and made his initial appearance in federal court in Miami. He will be arraigned in the Eastern District of New York at a later date.
Joseph Nocella, Jr., United States Attorney for the Eastern District of New York, John A. Eisenberg, Assistant Attorney General for the Justice Department’s National Security Division, Ricky J. Patel, Special Agent in Charge, Homeland Security Investigations, New York (HSI New York), and Jonathan Carson, Special Agent in Charge, U.S. Department of Commerce, Office of Export Enforcement (OEE), Bureau of Industry and Security, New York Field Office, announced the arrest and charges.
“As alleged, Larin agreed to illegally ship export-controlled weapons parts and accessories, including a sophisticated target acquisition system, to Kazakhstan, a known transshipment location for equipment bound for Russia. He lied on export documents and intentionally misrepresented and concealed the true nature of the materials he was shipping,” stated United States Attorney Nocella. “My Office will vigorously prosecute efforts to evade U.S. export regulations which threaten our national security and the security of our allies while benefitting Russia. We will continue to use every tool at our disposal to hold accountable those individuals who place their own interests above those of our nation and its security.”
Mr. Nocella expressed his appreciation to the Department of Defense Criminal Investigative Service, U.S. Attorney’s Office for the Southern District of Florida, HSI’s Miami Field Office, United States Postal Service Office of Inspector General, and U.S. Customs and Border Protection for their valuable assistance.
“Maxim Larin is accused of shipping weapons, parts and tactical accessories to countries that serve as pipelines for artillery destined for the Russian battlefield. He allegedly violated export control, willingly mislabeled packaging and labeling, and further utilized deceptive practices to hide the contents of firearms parcels. Make no mistake: this unlawful activity would have persisted if not for the collaborative law enforcement efforts that led to today's charges,” stated HSI New York Special Agent in Charge Patel. “HSI New York remains committed to utilizing our unique authorities to relentlessly pursue individuals who seek to exploit U.S. export control laws and in turn threaten public safety and national security.”“As set forth in the charging documents, Larin conspired to unlawfully export weapons components, including an advanced target acquisition system, to Kazakhstan, a known diversion hub,” stated OEE Special Agent in Charge Carson. “He further sought to conceal the nature of the shipment by falsifying export records. The Bureau of Industry and Security, together with our law enforcement partners, will continue to vigorously enforce U.S. export control laws, protect our national security, and bring to justice those who attempt to violate them.”
As alleged in the indictment and other public filings, Larin is the owner of several U.S. based companies which sell firearms parts and accessories. Larin used his companies to sell export-controlled weapons parts and accessories to a co-defendant based in Russia. Larin agreed to ship the items to Kazakhstan in violation of U.S. export control laws which restrict the export of certain items deemed detrimental to U.S. foreign policy or national security. Beginning as early as December 2022, Larin agreed with his Russia-based co-defendant to undervalue and mislabel the contents of the materials he was exporting. He also suggested that certain steps be taken to hide the contents of the parcels he was shipping from U.S. authorities. For example, in approximately December 2022, Larin emailed the co-defendant warning him about parcels with images of “soldiers on the packaging. It may be a red flag for the customs if they open it.” Larin further asked his co-defendant “Would you like us to remove the package boxes, or take a risk with the customs?”In approximately May 2023, Larin agreed to ship enhanced firearms triggers and charging handles to Kazakhstan at the request of his co-defendant. These items were all subject to export controls and could not be shipped to Kazakhstan without an export license from the U.S. Department of Commerce. Nevertheless, Larin agreed to ship the items and asked the co-defendant in Russia how he would like the items declared. In response, the co-defendant asked Larin to label the package as containing clothing, tools, and a light switch. Larin shipped the parcel and mislabeled its contents.
In approximately December 2023, Larin agreed to acquire a Rapid Targeting and Ranging Module (“Raptar”) target acquisition device on behalf of the co-defendant. The Raptar is a firearms accessory which assists its users in acquiring targets at long ranges. It is subject to the International Traffic in Arms Regulations (“ITAR”) and cannot be shipped outside of the United States without a license from the U.S. Department of State. After acquiring the Raptar, Larin agreed to ship the device to a co-conspirator in the United States who then attempted to ship it to Kazakhstan in violation of the ITAR. The device was intercepted and seized by HSI in California.
The charges in the indictment are allegations and the defendant is presumed innocent unless and until proven guilty. If convicted of the charges in the indictment, Larin faces up to 20 years in prison.
The government’s case is being handled by the Office’s National Security and Cybercrime Section. Assistant United States Attorneys Gilbert M. Rein and David I. Berman are in charge of the prosecution, along with Trial Attorney Christopher Cook of the National Security Division’s Counterintelligence and Export Control Section.
The Defendant:
MAXIM LARIN
Age: 43
Plantation, FloridaE.D.N.Y. Docket No. 25-CR-246 (NRM)
Two Gang Members of Bronx-Based 5zzly Crew Plead Guilty to Armed Carjacking on Long IslandRead the Press Release
Earlier today, at the federal courthouse in Brooklyn, Jaquell Blackwell pleaded guilty to carjacking. His co-defendant, Abdoul Azika, previously pleaded guilty to carjacking on July 9, 2025. Both proceedings were held before United States District Judge Allyne R. Ross. When sentenced, the defendants each face up to 15 years in prison.
Joseph Nocella, Jr., United States Attorney for the Eastern District of New York and Christopher G. Raia, Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI,) announced the guilty pleas.
“Blackwell and Azika, wielding weapons and threats of grievous harm, forced their victims to give up their vehicles and instilled terror in their communities,” stated United States Attorney Nocella. “They will now be held accountable for their crimes, and our Office will continue to work tirelessly with our law enforcement partners to eradicate gangs responsible for violent crime.”
Mr. Nocella expressed his appreciation to the Nassau County Police Department for their assistance on the case.
“Jaquell Blackwell and Abdoul Azika committed a series of violent carjackings by brandishing weapons to forcibly steal cars from their victims,” stated FBI Assistant Director in Charge Raia. “These gang members repeatedly terrorized our communities by threatening violence to ensure fearful compliance. The FBI continues to facilitate successful disruptions via Operation Summer Heat by protecting our citizens from violent offenders.”
According to court filings and statements by the defendants at the guilty plea proceedings, Azika and Blackwell were members of the violent “5zzly” crew of the Bronx-based Blood Hounds Brims gang that carried out armed carjackings and robberies across New York City and Long Island. Both defendants pleaded guilty to one such carjacking in the early morning hours of March 19, 2023, during which they snuck up on a vehicle parked in a residential neighborhood in Garden City, opened the doors of a vehicle, pointed a knife and a gun at the driver’s face, and told him to “get the f*** out of the car.” After the driver complied, Blackwell and Azika stole the car. Blackwell also admitted to committing another armed carjacking in Elmont on June 7, 2023, and Azika also admitted to perpetrating two armed carjackings in South Farmingdale and Massapequa on June 5, 2022.
The government’s case is being handled by the Office’s General Crimes Section. Assistant United States Attorneys Rebecca M. Schuman and Kamil R. Ammari are in charge of the prosecution.
The Defendants:
ABDOUL AZIKA
Age: 21
Bronx, New YorkJAQUELL BLACKWELL
Age: 20
Bronx, New YorkE.D.N.Y. Docket Nos. 24-CR-483, 25-CR-194 (ARR)
New Jersey Resident Sentenced to 30 Months in Prison for Role in Global Export Control and Sanctions Evasion SchemeRead the Press Release
BROOKLYN, NY – Earlier today, in federal court in Brooklyn, dual U.S. and Russian national Vadim Yermolenko was sentenced by United States District Judge Hector Gonzalez to 30 months in prison for his role in an illicit procurement and money laundering network that sought to acquire ammunition and sensitive dual-use electronics for Russian military and intelligence services. In addition to the term of imprisonment, Judge Gonzalez ordered Yermolenko to pay a forfeiture money judgment of $75,547.00. Yermolenko pleaded guilty in November 2024 to conspiracy to violate the Export Control Reform Act, bank fraud conspiracy, and conspiracy to defraud the United States.
Joseph Nocella, Jr., United States Attorney for the Eastern District of New York, John A. Eisenberg, Assistant Attorney General for National Security, and Christopher G. Raia, Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office; Jonathan Carson, Special Agent in Charge, U.S. Department of Commerce, Office of Export Enforcement, New York Field Office (OEE), and Harry T. Chavis, Jr., Special Agent-in-Charge, Internal Revenue Service-Criminal Investigation, New York (IRS-CI New York) announced the sentence.“The defendant lied to banks, facilitated the illegal export of ammunition and sensitive technology, and evaded income taxes, all as part of a global procurement and money laundering network operated on behalf of the Russian government,” stated United States Attorney Nocella. “Today’s sentence should send a message to all who would consider abusing the financial system to commit crimes on behalf of foreign nations: This Office will find you, prosecute you, and, if you are convicted, seek a significant prison sentence.”
“Vadim Yermolenko violated several US laws while endeavoring to help the government of Russia acquire dual-use technology and weapons to bolster its military. Today's sentencing should signal to all those attempting to evade US sanctions that the US government will work tirelessly to prevent American manufactured goods from being illegally procured and used to advance the militaries of adversarial foreign governments. The FBI will continue to be unrelenting in our efforts to defend the homeland, identity those responsible, and bring them to justice,” stated FBI Assistant Director in Charge Raia.
“Through a sophisticated network of shell companies and bank accounts, Yermolenko laundered more than $12 million and purchased highly sensitive military equipment for Russia—aiding Russia’s military and intelligence agencies in violation of U.S. laws. Yermolenko’s greed and misplaced foreign allegiance created a potential threat to our national security, and law enforcement’s collaboration on this case ensures that our communities are safe from this potential vulnerability,” stated IRS-CI New York Special Agent in Charge Chavis.
Mr. Nocella expressed his appreciation to the U.S. Customs and Border Protection, the Department of Justice’s Office of International Affairs, and the Estonian authorities for their valuable assistance.
As alleged in court documents, the defendant was affiliated with Serniya Engineering (Serniya) and Sertal LLC (Sertal), two Moscow-based procurement companies. Serniya and Sertal operated a vast network of shell companies and bank accounts throughout the world, including in the United States, that were used in furtherance of the scheme to conceal the involvement of the Russian government and the true Russian end users of U.S.-origin equipment.
The defendant and his co-conspirators unlawfully purchased and exported highly sensitive, export controlled electronic components, some of which can be used in the development of nuclear and hypersonic weapons, quantum computing, and other military applications. Serniya, Sertal, and several individuals and companies involved in the scheme were designated by the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) in February 2022.
To carry out the scheme, Yermolenko helped set up numerous shell companies and bank accounts in the U.S. to illicitly move money and export-controlled goods. During the period charged in the indictment, more than $12 million passed through accounts owned or controlled by the defendant, which he failed to report to the IRS. These funds were used in part to purchase sensitive equipment used in radar, surveillance, and military research and development. In one instance, money from one of the defendant’s accounts was used to purchase export-controlled sniper bullets, which were intercepted in Estonia before they could be smuggled into Russia.
Co-defendant Nikolaos Bogonikolos previously pleaded guilty to wire fraud conspiracy and conspiracy to violate the Export Control Reform Act and was sentenced to 15 months’ incarceration. Co-defendant Alexey Brayman previously pleaded guilty to conspiracy to defraud the United States and is awaiting sentence.
The government’s case is being handled by the Office’s National Security and Cybercrime Section. Assistant United States Attorneys Andrew D. Reich and Matthew Skurnik are in charge of the prosecution, with assistance from Trial Attorney Derek Shugert of the National Security Division’s Counterintelligence and Export Control Section. Former Assistant United States Attorney Artie McConnell, former Litigation Analysts Emma Tavangari and Mary Clare McMahon, and former National Security Division Trial Attorney Scott A. Claffee contributed to the prosecution.
The Defendant:
VADIM YERMOLENKO
AGE: 43
Upper Saddle River, New JerseyOther Defendants:
ALEXEY IPPOLITOV
AGE: 59
Moscow, RussiaYEVGENIY GRININ
age: 47
Moscow, RussiaBORIS LIVSHITS
Age: 55
St. Petersburg, RussiaSVETLANA SKVORTSOVA
AGE: 44
Moscow, RussiaVADIM KONOSHCHENOK
AGE: 51
Tallin, EstoniaALEXEY BRAYMAN
AGE: 38
Merrimack, New HampshireNIKOLAOS BOGONIKOLOS
AGE: 62
Athens, GreeceE.D.N.Y. Docket No. 22-CR-409 (S-3) (HG)
New Jersey Resident Sentenced for Role in Global Export Control and Sanctions Evasion SchemeRead the Press Release
Today, in federal court in Brooklyn, New York, a New Jersey resident and dual U.S. and Russian national, Vadim Yermolenko, was sentenced to 30 months in prison for his role in a transnational arms dealing and money laundering network that sought to acquire ammunition and sensitive dual-use electronics for Russian military and intelligence services. In addition to the term of imprisonment Yermolenko was ordered to pay a forfeiture money judgment of $75,547. Yermolenko pleaded guilty in November 2024 to conspiracy to violate the Export Control Reform Act, bank fraud conspiracy, and conspiracy to defraud the United States.
“The defendant lied to banks, facilitated the illegal export of ammunition and sensitive technology, and evaded income taxes, all as part of a global procurement and money laundering network operated on behalf of the Russian government,” said U.S. Attorney Joseph Nocella for the Eastern District of New York. “Today’s sentence should send a message to all who would consider abusing the financial system to commit crimes on behalf of foreign nations: this office will find you, prosecute you, and, if you are convicted, seek a significant prison sentence.”
As alleged in court documents, the defendant was affiliated with Serniya Engineering (Serniya) and Sertal LLC (Sertal), two Moscow-based procurement companies. Serniya and Sertal operated a vast network of shell companies and bank accounts throughout the world, including in the United States, that were used in furtherance of the scheme to conceal the involvement of the Russian government and the true Russian end users of U.S.-origin equipment.
The defendant and his co-conspirators unlawfully purchased and exported highly sensitive, export controlled electronic components, some of which can be used in the development of nuclear and hypersonic weapons, quantum computing, and other military applications. Serniya, Sertal, and several individuals and companies involved in the scheme were designated by the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) in February 2022.
To carry out the scheme, Yermolenko helped set up numerous shell companies and bank accounts in the U.S. to illicitly move money and export-controlled goods. During the period charged in the indictment, more than $12 million passed through accounts owned or controlled by the defendant, which he failed to report to the IRS. These funds were used in part to purchase sensitive equipment used in radar, surveillance, and military research and development. In one instance, money from one of the defendant’s accounts was used to purchase export-controlled sniper bullets, which were intercepted in Estonia before they could be smuggled into Russia.
Co-defendant Nikolaos Bogonikolos previously pleaded guilty to wire fraud conspiracy and conspiracy to violate the Export Control Reform Act and was sentenced to 15 months in prison. Co-defendant Alexey Brayman previously pleaded guilty to conspiracy to defraud the United States and is awaiting sentence.
Assistant Attorney General John A. Eisenberg for National Security, U.S. Attorney Joseph Nocella Jr. for the Eastern District of New York, Assistant Director in Charge Christopher G. Raia of the FBI’s New York Field Office, Special Agent in Charge Jonathan Carson of the U.S. Department of Commerce’s Office of Export Enforcement, New York Field Office (OEE), and Special Agent in Charge Harry T. Chavis Jr. of IRS Criminal Investigation New York (IRS-CI) made the announcement.
U.S. Customs and Border Protection, the Department of Justice’s Office of International Affairs, and the Estonian authorities provided valuable assistance.
Assistant U.S. Attorneys Andrew D. Reich and Matthew Skurnik for the Eastern District of New York are in charge of the prosecution, with assistance from Trial Attorney Derek Shugert of the National Security Division’s Counterintelligence and Export Control Section. Former Assistant U.S. Attorney Artie McConnell and former Litigation Analysts Emma Tavangari and Mary Clare McMahon for the Eastern District of New York, as well as former National Security Division Trial Attorney Scott A. Claffee, contributed to the prosecution.
Founder of Purported Artificial Intelligence-Powered Hedge Fund Sentenced to 30 Months in PrisonRead the Press Release
Earlier today, in federal court in Brooklyn, Mina Tadrus was sentenced by United States District Judge Hector Gonzalez to 30 months in prison for committing investment adviser fraud of more than $5.7 million in connection with a scheme to defraud investors in Tadrus Capital LLC, a hedge fund Tadrus founded and operated that purported to use artificial intelligence-based algorithmic trading models. As part of the sentence, Tadrus was also ordered to pay restitution of $4,224,850. Tadrus pleaded guilty in February 2025.
Joseph Nocella, Jr., United States Attorney for the Eastern District of New York, Christopher G. Raia, Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Harry T. Chavis, Jr., Special Agent in Charge, Internal Revenue Service Criminal Investigation, New York (IRS-CI New York) announced the sentence.
“The defendant traded on excitement over the newest AI technology to trick investors to invest millions with his hedge fund. In the end, he perpetrated one of the oldest frauds in the book,” stated United States Attorney Nocella. “Today’s sentence serves as a reminder to all investment advisors that your clients place great faith in you to truthfully manage their investments, nest-eggs, and retirement savings. Our Office is committed to protecting the investing public, vindicating the rights of victims of economic crime, and prosecuting those who undermine the stability of our economy.”
Mr. Nocella expressed his appreciation to the U.S. Securities and Exchange Commission’s New York Regional Office for its assistance in this matter.
“Mina Tadrus shamelessly lied to investors of his hedge fund - many of whom were friends and family - preying on their trust to defraud them out of more than $5 million. Today, Tadrus learned that his scheme resulted not in wealth, but prison time. Ensuring fraudsters are held accountable in the criminal justice system is essential to the FBI's work on behalf of the American people,” stated FBI Assistant Director in Charge Raia.
“While Tadrus sold a dream of high-profits to his investors, the only return they saw was the negative result of being swindled by someone they trusted. Today’s sentence and imposed restitution sees that Tadrus will spend real time behind bars and pay for his crimes. This new reality is not AI generated," stated IRS-CI New York Special Agent in Charge Chavis.
As set forth in court filings, Tadrus, a former stockbroker registered with the Financial Industry Regulatory Authority (FINRA) and derivatives consultant for a global financial institution, founded Tadrus Capital LLC in June 2020. Tadrus claimed to operate “the world’s first private high-yielding and fixed-income quantitative hedge fund” powered by artificial intelligence (AI) high-frequency trading models to guarantee investors up to 30% returns annually. In reality, Tadrus used no AI-based algorithmic trading. Tadrus also falsely claimed that Tadrus Capital was “recession-proof” and maintained liquidity with access to $5.5 billion in purchasing power.
Between September 2020 and July 2023, at least 31 individuals—predominantly Tadrus’s family, friends, and members of the Egyptian-American Coptic Christian community—invested more than $5.7 million with Tadrus Capital. Less than one percent of the investor funds were used for legitimate investment activities and none of those activities included the promised AI-based algorithmic trading. Instead, Tadrus used approximately $1.7 million of investor funds both to pay other investors the monthly returns he had falsely promised, and to pay himself, his employees, and his personal expenses.
The government’s case is being handled by the Office’s Business and Securities Fraud Section. Assistant United States Attorney Jonathan P. Lax is in charge of the prosecution.
The Defendant:
MINA TADRUS
Age: 38
Tampa, FloridaE.D.N.Y. Docket No. 23-CR-393 (HG)
Florida Man Convicted for Sex Trafficking and Other Offenses in New York StateRead the Press Release
A federal jury in the Eastern District of New York convicted Joel David Forney, 42, of Kissimmee, Florida, today on two counts of sex trafficking and related charges for his conduct in trafficking two women to work in commercial sex in New York, including at an open-air sex trafficking market along a stretch of Pennsylvania Avenue in Brooklyn known as the Penn Track, as well as the defendant’s transportation of a woman from New York to multiple other states, including Connecticut and Wisconsin, with the intent that she engage in commercial sex for his financial benefit. Forney was also found guilty of coercion and enticement of a minor for having sexual intercourse with a teenager when he was 31 years old.
“The defendant used violence and threats to force victims into commercial sex for his profit,” said Assistant Attorney General Harmeet K. Dhillon of the Justice Department’s Civil Rights Division. “Such inhumane conduct has no place in a civilized society. The Justice Department is committed to combating human trafficking and securing justice for its victims.”
“The jury found that Forney used violence and threats to compel women to engage in commercial sex acts at the Penn Track for his own profit, and enticed a vulnerable minor into having sex with him,” said U.S. Attorney Joseph Nocella Jr. for the Eastern District of New York. “Our office will relentlessly pursue those, like the defendant, who engage in sex trafficking, and I commend the survivors of Forney’s depraved conduct who bravely assisted law enforcement in bringing him to justice.”
“Joel Forney’s actions inflicted lasting harm on his victims through violence, coercion and manipulation,” said Assistant Director Jose A. Perez of the FBI Criminal Investigative Division. “The FBI remains steadfast in our commitment to protecting everyone in our communities, and we hope today’s sentencing brings some measure of closure to the victims.”
Evidence at trial showed that Forney used false promises to lure women into his trafficking network. The defendant then compelled these women to have sex with multiple men per day for money, while keeping the proceeds for himself. If the women refused to engage in commercial sex for his financial benefit, the defendant subjected them to physical abuse and threatened to hurt or kill them if they did not comply.
The evidence also showed that the defendant lured a third victim to his home by sending her romantic and sexual text messages. Once in his house, the defendant had sex with the victim, even though he was 31 years old at the time and she knew no more than 15. Forney then sent the victim text messages that implied he was recruiting her for commercial sex.
A sentencing hearing will be scheduled at a later date. Forney faces a minimum penalty of 15 years in prison and a maximum penalty of life in prison as well as mandatory restitution. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI investigated the case, with valuable assistance from the FBI NYPD Child Exploitation Human Trafficking Task Force.
Assistant U.S. Attorneys Lauren Elbert and Antoinette N. Rangel for the Eastern District of New York and Trial Attorney Leah Branch of the Civil Rights Division’s Human Trafficking Prosecution Unit are prosecuting the case.
Anyone who has information about human trafficking should report that information to the National Human Trafficking Hotline toll-free at 1-888-373-7888, which is available 24 hours a day, seven days a week. For more information about human trafficking, please visit www.humantraffickinghotline.org. Information on the Justice Department’s efforts to combat human trafficking can be found at www.justice.gov/humantrafficking.
Defendant Convicted of Sex-Trafficking of Women at Notorious “Penn Track” in Brooklyn and the Coercion and Enticement of a MinorRead the Press Release
BROOKLYN, NY – Earlier today, a federal jury in Brooklyn convicted Joel David Forney, also known as “Sirbar,” on two counts of sex trafficking for using force, fraud and coercion to cause two women to work as prostitutes, including at an open-air sex trafficking market along a stretch of Pennsylvania Avenue in East New York known as the Penn Track, as well as related charges for transporting a woman to and from New York and other states, including Connecticut and Wisconsin, with the intent that she engage in prostitution. Forney was also found guilty of coercion and enticement of a minor with whom he had sexual intercourse in 2014 when he was 31 years old. The verdict was returned after a five-day trial before United States District Judge Kiyo A. Matsumoto. When sentenced, Forney faces a mandatory minimum sentence of 15 years, and up to life, in prison.
Joseph Nocella, Jr., United States Attorney for the Eastern District of New York; Harmeet K. Dhillon, Assistant Attorney General of the Justice Department’s Civil Rights Division; and Christopher G. Raia, Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the verdict.
“The jury found that Forney used violence and threats to compel women to engage in commercial sex acts at the Penn Track for his own profit, and enticed a vulnerable minor into having sex with him” stated United States Attorney Nocella. “Our Office will relentlessly pursue those, like the defendant, who engage in sex trafficking, and I commend the survivors of Forney’s depraved conduct who bravely assisted law enforcement in bringing him to justice."
Mr. Nocella also expressed his thanks to the FBI/NYPD Child Exploitation Human Trafficking Task Force for their outstanding investigative work on the case.
“The defendant used violence and threats of violence to compel his victims to engage in commercial sex for his profit,” stated Assistant Attorney General Dhillon. “There is no place in a civilized society for the defendant’s inhumane conduct, and the Justice Department is committed to punishing human trafficking and achieving justice for its victims.”
“Joel Forney lured and forced women into commercial sexual acts with multiple individuals for his own profit and personally sought out and sexually abused a minor. Forney mercilessly punished and threatened extreme violence to induce compliance from his trafficked victims. May today’s conviction empower survivors of sexual violence and emphasize the FBI’s intolerance of those who seek to profit from another’s abuse,” stated FBI Assistant Director in Charge Raia.
As proven at trial, Forney used false promises to lure women into his trafficking business. Forney then compelled these women to engage in commercial sex with men while keeping their earnings for himself. If the women refused, Forney subjected them to physical abuse and threatened to hurt or kill them if they did not comply. Forney showed one victim an image on his cellphone of a dismembered woman and stated, “this is what happens to whores who don’t obey their pimps.”
The evidence also showed that the defendant lured a third victim, a minor whom he met in June 2014 near his then-home in Queens, New York, by sending her romantic and sexual text messages. Forney and the minor victim discussed her life as a teenager, including her school and her relationship with her parents, and the defendant repeatedly offered her money. Once in his house, Forney had sex with the victim, even though he was 31 years old, and she was no more than 15 years old.
Anyone who has information about human trafficking should report that information to the National Human Trafficking Hotline toll-free at 1-888-373-7888, which is available 24 hours a day, seven days a week. For more information about human trafficking, please visit www.humantraffickinghotline.org. Information on the Justice Department’s efforts to combat human trafficking can be found at www.justice.gov/humantrafficking.
The government’s case is being handled by the Office’s Human Trafficking and Civil Rights Section. Assistant United States Attorneys Antoinette N. Rangel, Lauren A. Bowman, and Trial Attorney Leah Branch of the Justice Department’s Civil Rights Division’s Human Trafficking Prosecution Unit are in charge of the prosecution with the assistance of Paralegal Specialist Chelsea Guzman and additional assistance from Victim Witness Coordinator Huda Abouchaer and Victim Witness Specialist Kristina Marius.
The Defendant:
JOEL DAVID FORNEY (also known as “Sirbar”)
Age: 42
Kissimmee, FloridaE.D.N.Y. Docket No. 24-CR-146 (KAM)
Crypto Influencer Sentenced to Prison for Multi-Million Dollar “Cryptojacking” SchemeRead the Press Release
Earlier today in federal court in Brooklyn, Charles O. Parks III, also known as “CP3O,” was sentenced by United States District Judge Eric Komitee to one year and one day in prison for operating a large-scale illegal “cryptojacking” operation. As part of the scheme, Parks defrauded two well-known providers of cloud computing services out of more than $3.5 million worth of computing resources so that he could mine cryptocurrency worth nearly $1 million. Parks was charged with wire fraud, money laundering, and engaging in unlawful monetary transactions in connection with the scheme and pleaded guilty to wire fraud in December 2024. As part of the sentence, Parks was ordered to forfeit $500,000 and a Mercedes Benz luxury car purchased with proceeds from the scheme. The amount of restitution will be determined at a later date.
Joseph Nocella, Jr., United States Attorney for the Eastern District of New York; Christopher G. Raia, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI); and Jessica S. Tisch, Commissioner, New York City Police Department (NYPD) announced the sentence.
“Parks branded himself as an innovator and a thought leader, but in the end he was merely a fraudster whose secret to getting rich quick was lying and stealing,” stated United States Attorney Nocella. “This Office remains committed to prosecuting criminal actors who take advantage of new, sophisticated technologies to engage in fraud and deceit.”
Mr. Nocella expressed his appreciation to the FBI’s New York Cyber Crimes Task Force (CCTF).
“Charles Parks III stole more than $3.5 million worth of resources to illegally mine another million in cryptocurrency for personal luxurious purchases,” stated FBI Assistant Director in Charge Raia. “While Parks gloated across social media platforms, he failed to mention his purported success was rooted in deceit and theft. May today's sentencing reaffirm the FBI's steadfast commitment to dismantling any cryptojacking operation that targets legitimate companies for nefarious reasons.”
“Charles Parks manipulated technology, stole millions in computer resources, and illegally mined cryptocurrency—and today’s sentencing holds him fully accountable for his deceitful actions,” stated NYPD Commissioner Tisch. “I am grateful to the NYPD and FBI investigators for their dedication, and I commend the prosecutors for their tireless efforts in securing this meaningful prison sentence. We will continue to work with all of our law enforcement partners to bring to justice anyone who seeks to undermine the integrity of our financial institutions.”
“Cryptojacking,” also referred to as malicious cryptomining, is the unauthorized use or hijacking of another party’s resources, such as electricity, hardware, or computing power, to mine cryptocurrency. According to court filings and facts presented at today’s sentencing, from in or about January 2021 through August 2021, Parks operated a large-scale “cryptojacking” operation in which he defrauded two well-known providers of cloud computing services out of more than $3.5 million worth of computing resources in order to mine nearly $1 million in cryptocurrency.
Parks created and used a variety of names, corporate affiliations, and email addresses, including emails with domains from corporate entities he operated called “MultiMillionaire LLC” and “CP3O LLC,” to register numerous accounts with the service providers and to gain access to massive amounts of computing processing power and storage that he did not pay for. Parks also deceived the providers into approving heightened privileges and benefits, including elevated levels of computing services, and deflected inquiries from the providers regarding questionable data usage and mounting unpaid subscription balances. For example, Parks told one provider that he was using the computing resources to build “a global online training company that focuses on media, technology, and business strategy” and that his goal was “to serve 10,000 students simultaneously.” In reality, there was no training company, and there were no students. Parks instead used the fraudulently obtained computing resources to mine various cryptocurrencies including Ether, Litecoin, and Monero.
Parks then converted and laundered the cryptocurrency proceeds through cryptocurrency exchanges, a non-fungible token (NFT) marketplace, an online payment provider, and traditional bank accounts, and structured money movements to avoid transaction reporting requirements under federal law. After converting the ill-gotten cryptocurrency into dollars, Parks used the proceeds to make extravagant purchases, including a Mercedes-Benz, jewelry, and first-class hotel rooms, and to pay travel expenses.
Parks boasted about his profits so as to earn credibility as a crypto influencer. In a video uploaded to his YouTube channel in September 2022, Parks purported to share tips for achieving what he called a “MultiMillionaire Mentality.” Describing the fraudulent scheme, Parks boasted that, “Last year I set a goal for myself that I wanted to make seven digits or more, and so I spent the first ten days of the year creating a—we’ll just call it a really nice crypto script—that I was able to use at scale. And after working that ten days, let’s just put it this way, I didn’t work the rest of the year.” He later added that, “…by April, I purchased myself a Mercedes Benz AMG S class coup.”
The government’s case is being handled by the Office’s National Security and Cybercrime Section. Assistant United States Attorney Andrew D. Reich is in charge of the prosecution, with the assistance of Paralegal Specialist Wayne Colon.
The Defendant:
CHARLES O. PARKS III (also known as “CP3O”)
Age: 46
Omaha, NebraskaE.D.N.Y. Docket No. 24-CR-105 (EK)
Two Convicted Felons Charged with Federal Firearms Violations in Connection with Brooklyn GunfightRead the Press Release
Earlier today, at the federal courthouse in Brooklyn, a criminal complaint was filed charging Edynesson Bauduy and Aaron Richard with federal firearms violations relating to an August 12, 2025 gunfight in the Flatbush section of Brooklyn. Both defendants were arrested and Richard made his initial appearance this afternoon before United States Magistrate Judge Seth D. Eichenholtz. Richard was ordered detained pending trial. Bauduy will be arraigned at a later date.
Joseph Nocella, Jr., United States Attorney for the Eastern District of New York, Christopher G. Raia, Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Jessica S. Tisch, Commissioner, New York City Police Department (NYPD) announced the arrests and charges.
“As alleged, these defendants are convicted felons who engaged in a dangerous gunfight on a busy Brooklyn street in broad daylight, endangering the lives of numerous citizens,” said United States Attorney Nocella. “Both defendants had been released from prison earlier this year. Despite repeated encounters with our criminal justice system, each defendant chose to return to the streets to engage in brazen acts of violence. Today’s arrests demonstrate our continued commitment to working with our law enforcement partners to combat gun violence and hold accountable those who illegally possess firearms and endanger our communities.”
Mr. Nocella thanked the U.S. Marshals Service Regional Fugitive Task Force for their valuable assistance on the case.
"Edynesson Bauduy and Aaron Richard allegedly engaged in a public gunfight despite their previous criminal convictions barring them from possessing firearms. These convicted felons allegedly continued to wreak havoc in our community and posed an unnecessary threat to innocent bystanders. These successful Operation Summer Heat arrests emphasizes the FBI’s steadfast commitment to collaborating with our law enforcement partners to crush all violent crime disrupting the safety of our city," stated FBI Assistant Director in Charge Raia.
As alleged in the criminal complaint, on August 12, 2025, at approximately 7:25 p.m., NYPD officers on patrol in the 70th Precinct heard gunshots and immediately responded near 533 Ocean Avenue in Flatbush, Brooklyn. When officers arrived, they observed a gunfight in progress between Bauduy and Richard.
Police recovered a firearm that had been used by Bauduy and shell casings from where Richard fired his weapon. Both defendants have prior felony convictions that prohibit them from possessing firearms or ammunition. Richard was released from prison in April of this year; Bauduy was released from prison in June.
The charges in the complaint are allegations, and the defendants are presumed innocent unless and until proven guilty. If convicted, each defendant faces up to 15 years in prison.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. As part of the program, U.S. Attorney’s Offices work in partnership with federal, state, local, and tribal law enforcement and their local communities to develop effective, locally based strategies to reduce violent crime.
The government’s case is being handled by the Office’s General Crimes Section. Assistant United States Attorneys Brachah Goykadosh and Matthew Sullivan are in charge of the prosecution.
The Defendants:
EDYNESSON BAUDUY
Age: 22
Brooklyn, New YorkAARON RICHARD
bauduy_and_richard_complaint.pdf
Age: 35
Brooklyn, New YorkE.D.N.Y. Docket No. 25-MJ-248
Senior Member of the Sinaloa Cartel Transferred from Mexico to Face Cocaine Trafficking Charge in Federal Court in BrooklynRead the Press Release
Jesus Guzman-Castro, also known as “Chuy,” “El Narizon” and “Pinocho” was arraigned today before United States Magistrate Judge James R. Cho at the federal courthouse in Brooklyn on an indictment charging him with participating in a large-scale cocaine distribution conspiracy. The defendant, a Mexican citizen, was arrested in Mexico on a provisional arrest request issued from the Eastern District of New York and subsequently transferred from Mexico to the United States on August 12, 2025 pursuant to Mexico’s National Security Law. Guzman-Castro was ordered detained pending trial.
Joseph Nocella, Jr., United States Attorney for the Eastern District of New York, and Frank A. Tarentino III, Special Agent in Charge, Drug Enforcement Administration, New York Division (DEA New York), made the announcement.
“As alleged, Guzman-Castro was a senior member of the Sinaloa Cartel, a prolific and violent drug trafficking organization that has flooded American streets with deadly narcotics for decades,” stated United States Attorney Nocella. “Guzman-Castro will now face justice in a courtroom in the United States for all the harm his actions have wrought. The total elimination of drug cartels is a national priority, and the Department of Justice and our Office are fully committed to carrying out that objective.”
Mr. Nocella also expressed his appreciation to the U.S. Attorney’s Office for the District of South Carolina, DEA’s Rocky Mountain Division, DEA’s office in Mexico City, the United States Marshals Service, the Department of Justice’s Office of International Affairs, and the Government of Mexico.
“The arrest and transfer of Jesus Guzman-Castro is the result of the relentless efforts of the DEA and our law enforcement partners to dismantle the most dangerous drug trafficking organizations” stated DEA New York Special Agent in Charge Tarentino. “For decades, Guzman-Castro helped flood American streets with deadly narcotics, and the DEA remains committed to pursuing those who threaten the safety and well-being of our communities.”
As set forth in the indictment and court filings, Guzman-Castro was a high-ranking member of the Sinaloa Cartel, a violent Mexican drug trafficking organization that was previously led by Ismael Zambada Garcia, also known as “El Mayo,” and Joaquin Archivaldo Guzman Loera, also known as “El Chapo.” As a senior member of the Sinaloa Cartel, Guzman-Castro oversaw numerous underlings, including armed gunmen, transporters of narcotics, and money launderers. For years, the defendant directed the trafficking of thousands of kilograms of cocaine and the laundering of millions of dollars in drug proceeds. Guzman-Castro is charged with participating in an international cocaine distribution conspiracy from December 2015 through March 2021. Guzman-Castro sourced thousands of kilograms of cocaine from drug trafficking organizations in Guatemala and then arranged for the transportation of the cocaine through Mexico and into the United States.
The charge in the indictment is an allegation, and the defendant is presumed innocent unless and until proven guilty. If convicted, the defendant faces up to life in prison.
The prosecution of Guzman-Castro is the result of an ongoing Organized Crime Drug Enforcement Task Forces (OCDETF) investigation led by the United States Attorney’s Office for the Eastern District of New York and the DEA. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking, weapons trafficking, and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply. OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
This case is part of Operation Take Back America, a nationwide initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations (TCOs), and protect our communities from the perpetrators of violent crime. Operation Take Back America streamlines efforts and resources from the Department’s Organized Crime Drug Enforcement Task Forces (OCDETFs) and Project Safe Neighborhood (PSN).
The government’s case is being handled by the Office’s International Narcotics and Money Laundering Section. Assistant United States Attorney Andrew D. Wang is in charge of the prosecution.
The Defendant:
JESUS GUZMAN-CASTRO (also known as “Chuy,” “El Narizon” and “Pinocho”)
Age: 56
MexicoE.D.N.Y. Docket No. 22-CR-278 (FB)
Long Island Resident Sentenced to 48 Months in Prison for Covid-19 Loan FraudRead the Press Release
Earlier today, in federal court in Central Islip, Niall Alli was sentenced by United States District Judge Gary R. Brown to 48 months in prison, in connection with a $1.7 million disaster relief fraud and wire fraud perpetrated during the height of the COVID-19 pandemic. As part of the sentence, Alli was also ordered to pay $1.7 million in restitution to the Small Business Administration (SBA) and approximately $135,000 in forfeiture consisting of assets seized from corporate bank accounts and Ethereum from a corporate Coinbase wallet. Alli pleaded guilty in December 2023.
Joseph Nocella, Jr., United States Attorney for the Eastern District of New York, and Daniel Brubaker, Inspector in Charge, United States Postal Inspection Service, New York Division (USPIS) announced the sentence.
“Alli saw the COVID-19 programs and the deadly pandemic as an avenue for stealing money from the government and taxpayers, to spend nearly $500,000 to purchase cryptocurrency, $140,000 on two wristwatches, a $36,000 stay at a luxury Manhattan hotel, and an $800 bottle of champagne and $600 bottle of Scotch at fine restaurants,” stated United States Attorney Nocella. “The defendant now knows the price of such conduct is the loss of his freedom and full restitution to the Small Business Administration. Today’s sentence should also put scammers like the defendant on notice that there is no free pass for those who take advantage of important relief programs.”
Mr. Nocella expressed his appreciation to the SBA for their partnership on the case.
“Alli's compulsion for fraud resulted in government money intended to assist struggling businesses during the COVID-19 pandemic, exploited for a short-lived lavish lifestyle. Today's sentencing is proof that Postal Inspectors will relentlessly pursue any individuals who take advantage of the U.S. Mail to defraud the government and steal taxpayer funds. I would like to thank the United States Attorney's Office, Eastern District of New York, and the Small Business Administration for their work on this investigation,” stated USPIS Inspector in Charge Brubaker.
As set forth in court filings, Alli was associated with two corporate entities, Allicorp, Inc. and Oxypaper, Inc. Between approximately April 2020 and November 2021, during the height of the COVID-19 pandemic, Alli engaged in a scheme to defraud the SBA and several financial institutions administering the Paycheck Protection Program (PPP) of federal COVID-19 emergency-relief funds meant for distressed small businesses. Alli fraudulently applied for, and received, four PPP loans, totaling over $1.7 million, on behalf of the two corporate entities he controlled. The applications contained false information, including bogus financial data and fabricated payrolls, which was designed to fraudulently induce the SBA and lenders administering the PPP programs to approve the loans. Once the loans were approved and disbursed, Alli filed fraudulent forgiveness applications supported by fictitious financial statements and false statements. Alli utilized the loan proceeds to enrich himself, including by discharging personal debts and making extravagant purchases. For example, he purchased two Patek Philippe wristwatches for $138,568; paid for private school tuition for his child; purchased nearly half a million dollars’ worth of cryptocurrency; and spent tens of thousands of dollars on luxury hotel stays.
The government’s case is being handled by the Criminal Section of the Office’s Long Island Division. Assistant United States Attorney Charles P. Kelly is in charge of the prosecution, with assistance from Paralegal Specialists Samantha Schroder and Ana Maria Tejada.
The Defendant:
NIALL ALLI
Age: 52
Inwood, New YorkE.D.N.Y. Docket No. 22-CR-395 (S-1) (GRB)
Justice Department Finds Suffolk County Police Department in Substantial Compliance with 2014 AgreementRead the Press Release
CENTRAL ISLIP, NY – The Justice Department announced today the successful completion of an agreement between Suffolk County, New York, Police Department (SCPD) and the Department of Justice. Entered into in 2014, the agreement called for SCPD to improve bias-free policing, increase community engagement, and develop additional policies and training, among other things. With support from the Justice Department, as set forth in a report issued today, SCPD has now achieved sustained substantial compliance with all of the agreement’s terms.
“The Suffolk County Police Department is to be commended for taking the steps necessary to achieve the objectives of the 2014 agreement with the Department of Justice and our Office,” said U.S. Attorney Joseph Nocella Jr. for the Eastern District of New York. “Policing in Suffolk County has been enhanced and become more responsive to community needs. The partnership between our Office and the SCPD has strengthened the safety of all residents of the County.”
“Suffolk County Police Department’s commitment to protecting the public in a constitutionally compliant way is commendable,” said Assistant Attorney General Harmeet K. Dhillon of the Justice Department’s Civil Rights Division. “This Department of Justice is committed to collaborating with law enforcement to make American communities safer.”
SCPD implemented language assistance policies and deployed resources to ensure that people with Limited English Proficiency have meaningful access to police services. It improved reporting and supervision throughout the department. It also improved policies, training, and tracking to better handle hate crimes and misconduct complaints.
Please click here to read the Cover Letter and Final Suffolk Report.
Justice Department Finds Suffolk County Police Department in Substantial Compliance with 2014 AgreementRead the Press Release
The Justice Department announced today the successful completion of an agreement between Suffolk County, New York, Police Department (SCPD) and the Department of Justice. Entered into in 2014, the agreement called for SCPD to improve bias-free policing, increase community engagement, and develop additional policies and training, among other things. With support from the Justice Department, as set forth in a report issued today, SCPD has now achieved sustained substantial compliance with all of the agreement’s terms.
“Suffolk County Police Department’s commitment to protecting the public in a constitutionally compliant way is commendable,” said Assistant Attorney General Harmeet K. Dhillon of the Justice Department’s Civil Rights Division. “This Department of Justice is committed to collaborating with law enforcement to make American communities safer.”
“The Suffolk County Police Department is to be commended for taking the steps necessary to achieve the objectives of the 2014 agreement with the Department of Justice and our Office,” said U.S. Attorney Joseph Nocella Jr. for the Eastern District of New York. “Policing in Suffolk County has been enhanced and become more responsive to community needs. The partnership between our Office and the SCPD has strengthened the safety of all residents of the County.”
SCPD implemented language assistance policies and deployed resources to ensure that people with Limited English Proficiency have meaningful access to police services. It improved reporting and supervision throughout the department. It also improved policies, training, and tracking to better handle hate crimes and misconduct complaints.
Please click here to read the Cover Letter and Final Suffolk Report
Leader of $68M Adult Day Care Fraud Scheme Pleads GuiltyRead the Press Release
A New York woman pleaded guilty today to conspiring to defraud Medicaid and pay health care kickbacks at her two Brooklyn social adult day cares.
“The defendant orchestrated a massive scheme to defraud Medicaid, bribing patients to bill a federal health care program for over $68 million,” said Acting Assistant Attorney General Matthew R. Galeotti of the Justice Department’s Criminal Division. “Americans will not stand for these schemes that target government programs intended to help society’s most vulnerable members and steal from the public fisc. As demonstrated by today’s announcement, we will continue to aggressively prosecute those who take part in these crimes.”
“With today’s guilty plea, Khan stands convicted of acting as the ringleader of a scheme responsible for stealing millions of dollars dedicated to the government’s health care safety net,” stated U.S. Attorney Joseph Nocella Jr. for the Eastern District of New York. “Our office and the Justice Department take seriously our responsibility to protect government funds from the clutches of fraudsters and will vigorously prosecute corrupt health care operators like the defendant.”
“Social adult day care and home health services are intended to support seniors, not serve as vehicles for fraud,” stated Deputy Inspector General for Investigations Christian J. Schrank of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). “The defendant’s actions are an affront to hardworking taxpayers and undermine the integrity of our nation’s health care system. HHS-OIG will continue to relentlessly pursue anyone who illicitly exploits Medicaid enrollees and the program itself to ensure they are held fully accountable.”
“Zakia Khan has admitted her involvement in a sweeping scheme that defrauded the U.S. government of $68 million in welfare funds meant for one of our country’s most vulnerable populations,” stated Special Agent in Charge Ricky J. Patel of Immigration and Customs Enforcement Homeland Security Investigations (HSI) New York. “Today’s guilty plea underscores not only the lengths criminal opportunists often take, but also the state-of-the-art skills and procedures utilized by HSI New York to stop them in their tracks.”
“Zakia Khan stole $68 million from the Medicaid program through bribes and kickbacks—money meant to support the most vulnerable,” stated NYPD Commissioner Jessica S. Tisch. “This fraudulent cash grab exploited a federal health care system that people depend on, and the NYPD will keep holding accountable anyone who tries to take advantage of it. Today’s guilty plea is another step towards justice, and I am thankful to the NYPD investigators, all our law enforcement partners, and the prosecutors for their meticulous work on this case.”
According to court documents, Zakia Khan, 54, of Brooklyn, owned two social adult day cares: Happy Family Social Adult Day Care Center Inc. and Family Social Adult Day Care Center Inc., Responsible Care Staffing Inc., a home health care fiscal intermediary, and Tanwee Services Inc., an entity used to receive and disguise fraud proceeds. Beginning in approximately October 2017 and continuing through approximately July 2024, in exchange for kickbacks and bribes, Khan and marketers whom she employed referred Medicaid recipients to the social adult day cares that she owned, and Khan and the marketers in turn paid kickbacks and bribes to Medicaid recipients for social adult day care services that the day cares billed to Medicaid, but were not provided or that were induced by kickbacks and bribes. Khan and her co-defendants used multiple business entities to launder the fradulent proceeds and generate the cash used to pay kickbacks and bribes. In connection with her plea, Khan agreed to forfeit $5 million, including two properties, cash, and gold jewelry seized during a search of her home.
Khan pleaded guilty to conspiracy to commit health care fraud and conspiracy to defraud the United States and to pay and receive health care kickbacks. She is scheduled to be sentenced on Jan. 28, 2026, and faces a maximum penalty of 15 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
HHS-OIG, HSI, and the NYPD are investigating the case.
Trial Attorneys Patrick J. Campbell and Leonid Sandlar of the Criminal Division’s Fraud Section are prosecuting the case with the assistance of Assistant U.S. Attorney Michael Castiglione for the Eastern District of New York, who assisted with forfeiture matters.
The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, currently comprised of 9 strike forces operating in 27 federal districts, has charged more than 5,800 defendants who collectively have billed federal health care programs and private insurers more than $30 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at www.justice.gov/criminal-fraud/health-care-fraud-unit.
Brooklyn Woman Pleads Guilty to Leading a $68 Million Social Adult Day Care and Home Health Care Fraud SchemeRead the Press Release
BROOKLYN, NY – Zakia Khan pleaded guilty in federal court in Brooklyn today to conspiring to defraud Medicaid of approximately $68 million through the payment of kickbacks and bribes at two Brooklyn social adult day care centers that she owned in Coney Island. When sentenced, Khan faces up to 15 years in prison. As part of her plea agreement, Khan agreed to forfeit $5 million, including several properties, and more than $300,000 in cash and gold jewelry seized by law enforcement during a search of her home. The proceeding was held before United States District Judge Natasha C. Merle.
Joseph Nocella, Jr., United States Attorney for the Eastern District of New York; Matthew R. Galeotti, Acting Assistant Attorney General of the Justice Department’s Criminal Division; Christian J. Schrank, Deputy Inspector General for Investigations, U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG); Ricky J. Patel, Special Agent in Charge, Homeland Security Investigations, New York (HSI New York); and Jessica S. Tisch, Commissioner, New York City Police Department (NYPD) announced the guilty plea.
“With today’s guilty plea, Khan stands convicted of acting as the ringleader of a scheme responsible for stealing millions of dollars dedicated to the government’s health care safety net,” stated United States Attorney Nocella. “Our Office and the Justice Department take seriously our responsibility to protect government funds from the clutches of fraudsters and will vigorously prosecute corrupt health care operators like the defendant.”
“The defendant orchestrated a massive scheme to defraud Medicaid, bribing patients to bill a federal health care program over $68 million,” stated Acting Assistant Attorney Galeotti. “Americans will not stand for these schemes that target government programs intended to help society’s most vulnerable members and steal from the public fisc. As demonstrated by today’s announcement, we will continue to aggressively prosecute those who take part in these crimes.”
“Social adult day care and home health services are intended to support seniors, not serve as vehicles for fraud. The defendant’s actions are an affront to hardworking taxpayers and undermine the integrity of our nation’s health care system,” stated Deputy Inspector General for Investigations Schrank of the HHS-OIG. “HHS-OIG will continue to relentlessly pursue anyone who illicitly exploits Medicaid enrollees and the program itself to ensure they are held fully accountable.”
“Zakia Khan has admitted her involvement in a sweeping scheme that defrauded the U.S. government of $68 million in welfare funds meant for one of our country’s most vulnerable populations,” stated HSI New York Special Agent in Charge Patel. “Today’s guilty plea underscores not only the lengths criminal opportunists often take, but also the state-of-the-art skills and procedures utilized by HSI New York to stop them in their tracks.”
“Zakia Khan stole $68 million from the Medicaid program through bribes and kickbacks—money meant to support the most vulnerable,” stated NYPD Commissioner Tisch. “This fraudulent cash grab exploited a federal health care system that people depend on, and the NYPD will keep holding accountable anyone who tries to take advantage of it. Today’s guilty plea is another step towards justice, and I am thankful to the NYPD investigators, all our law enforcement partners, and the prosecutors for their meticulous work on this case.”
As set forth in court filings, Khan owned two social adult day care centers, Happy Family Social Adult Day Care Center Inc. (Happy Family) and Family Social Adult Day Care Center Inc. (Family Social), a home health care fiscal intermediary, and Tanwee Services Inc., an entity used to receive and disguise fraud proceeds. Beginning in approximately October 2017 and continuing through approximately July 2024, Khan and marketers she employed referred Medicaid recipients to Happy Family and Family Social. Khan and the marketers in turn paid kickbacks and bribes to Medicaid recipients for social adult day care services that Happy Family and Family Social billed to Medicaid, but were not provided or were induced by kickbacks and bribes. Khan and her co-defendants used multiple business entities to launder the health care fraud proceeds and generate the cash used to pay kickbacks and bribes. Co-defendants Seema Memon and Amran Hashmi, who were employees of Khan, previously pleaded guilty and are awaiting sentencing. Eleven additional co-defendants are awaiting trial.
Trial Attorneys Patrick J. Campbell and Leonid Sandlar of the Criminal Division’s Fraud Section are prosecuting the case with the assistance of Assistant U.S. Attorney Michael Castiglione of the Eastern District of New York who is handling forfeiture matters.
The Defendant:
ZAKIA KHAN
Age: 54
Brooklyn, New YorkDefendants Who Previously Pleaded Guilty:
SEEMA MEMON
Age: 30
Brooklyn, New YorkAMRAN HASHMI
Age: 54
Brooklyn, New YorkE.D.N.Y. Docket No.: 24-CR-409 (NCM)
Oyster Bay Resident Pleads Guilty to $30 Million Investment Fraud Scheme and Selling Foreign Nationals Access to Prominent U.S. PoliticiansRead the Press Release
Earlier today, at the federal courthouse in Central Islip, Sherry Xue Li pleaded guilty to money laundering conspiracy and conspiracy to defraud the United States by obstructing the Federal Election Commission’s (FEC’s) administration of campaign finance laws. Li orchestrated a nearly decade-long scheme to defraud investors in a fictitious development project out of more than $30 million. As part of the scheme, Li and her co-defendant Lianbo Wang falsely promised those investors that their investments would guarantee them lawful permanent resident status in the United States. Li and Wang also sold foreign investors access to U.S. politicians at fundraisers by collecting foreign-sourced funds from them and unlawfully contributing those funds to U.S. political campaigns and committees. When sentenced, Li faces up to 20 years in prison. As part of her plea agreement, Li agreed to forfeit $31.5 million, as well as property at three locations. In 2024, Wang pleaded guilty to engaging in unlawful monetary transactions and conspiracy to defraud the United States, and was sentenced to 60 months’ imprisonment.
Joseph Nocella, Jr., United States Attorney for the Eastern District of New York; Christopher G. Raia, Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI); Ricky J. Patel, Special Agent in Charge, Homeland Security Investigations, New York (HSI New York); and Harry T. Chavis, Jr., Special Agent in Charge, Internal Revenue Service Criminal Investigation, New York (IRS-CI New York) announced the guilty plea.
“Li defrauded more than 150 victims in the United States and abroad through years of lies and deception and sought to profit by selling access to the democratic process,” stated United States Attorney Nocella. “In doing so, she attempted to corrupt a fundamental institution in this country—fair and transparent elections free from unlawful foreign influence. Our Office is committed to investigating and prosecuting predatory fraudsters who steal victims’ hard-earned money.”
“Sherry Li admitted to her role in a long running fraud, profiting off of the exploitation of our nation's political and immigration system,” stated FBI Assistant Director in Charge Raia. “Li's corrupt scheme may have led to initial profits but ultimately will result in the loss of her freedom. The FBI will continue to investigate and hold accountable any malicious actor attempting to manipulate the electoral or immigration process of the United States for personal gain.”
“Sherry Li’s guilty plea today demonstrates HSI New York’s commitment to dismantling transnational schemes that try to exploit our immigration and financial laws. Irrespective of the deceitful, and oftentimes creative methodologies that fraudsters pose to unwitting victims, we will ensure they do not take advantage of our laws that are made to protect individuals and entities from swindlers,” stated HSI New York Special Agent in Charge Patel.
“Li’s victims thought that they were investing in the American dream, but instead were left in a nightmare of fraud and deceit,” stated IRS-CI Special Agent in Charge Chavis. “While she pocketed the money and traveled on lavish vacations, not one EB-5 or stock investor received what they were promised in return for their backing. Now, with today’s plea, she will finally move forward in facing the consequences of her selfish acts,” said Harry T. Chavis, Jr., Special Agent in Charge of IRS-CI New York.”
The Scheme to Defraud Investors
Li and Wang defrauded investors in a fictitious development project in Sullivan County, New York called the Thompson Education Center (TEC) (the TEC Project) out of more than $30 million. Many of the victims were foreign nationals located in the People’s Republic of China (PRC) who were persuaded to invest in the project by the defendants’ false assurances that their $500,000 investments would guarantee them lawful permanent residence in the United States through the EB-5 investment visa program administered by the Department of Homeland Security, U.S. Citizenship and Immigration Services (USCIS). The defendants falsely represented the progress they were making on the project and its support from government officials. The defendants distributed promotional materials that contained photographs of Li with prominent U.S. politicians to falsely convey government support for the project.
Li and Wang siphoned off the money they fraudulently obtained from investors by transferring the funds through bank accounts held in the names of various companies that Li had created. Once the funds were in those accounts, Li and Wang used the funds to pay for personal expenses including clothing, jewelry, housing, vacation travel, upscale dining, and political contributions to prominent politicians. The portion of the invested capital Li and Wang actually spent on the TEC Project was used merely to create and perpetuate the fiction that the TEC Project was a viable development project that was actually under construction. For example, Li and Wang hired contractors, engineers, and other professionals to create architectural drawings and plans and perform minor work on or around the development site, which Li and Wang showed to potential investors to mislead them into believing the TEC Project had a realistic probability of completion and of delivering the returns on investment that the co-conspirators promised their investors.
Ultimately, more than 150 investors invested at least $31.5 million in the TEC Project, including approximately $16.5 million from EB-5 investors who were promised green cards in return for their investments, and approximately $15 million from stock investors who were promised that an initial public offering (IPO) would take place. No EB-5 investor in the TEC Project ever received a temporary or permanent green card and the TEC Project did not have an IPO or list on any stock exchange.
Selling Access to U.S. Politicians
In furtherance of their scheme, Li and Wang also acted as “straw donors” for foreign nationals to unlawfully contribute to campaigns supporting U.S. politicians and political committees. Li and Wang promised foreign nationals access to U.S. political events and politicians in exchange for a fee. Li and Wang used the money they received from foreign nationals to fund political contributions, and falsely identified themselves and other U.S. citizens as the contributors of the funds, in violation of the Federal Election Campaign Act (FECA) and FEC regulations. In some cases, Li and Wang used TEC investors’ investment funds to make the political contributions which they used to gain access to the political events, where Li and Wang took photographs with elected officials. Li and Wang would then use the photographs as a marketing tool in soliciting investments from foreign nationals in the TEC Project.
For example, as alleged in the complaint, Li and Wang charged 12 foreign nationals $93,000 per person for admission to a June 28, 2017 fundraising event (the June 28, 2017 Fundraiser) with the then-President of the United States. Li and Wang used the funds that they collected from the foreign nationals to unlawfully make $600,000 in political contributions in their own names—$270,500 from Li and $329,500 from Wang—to the joint fundraising committee hosting the June 28, 2017 Fundraiser. At the time they made these contributions, they were the largest contributors to the joint fundraising committee, which was unaware of the charged schemes. Li, Wang, and their foreign national guests attended the June 28, 2017 Fundraiser and took photographs with the then-President of the United States. Li and Wang later used a photograph of Li and the President taken at the June 28, 2017 Fundraiser to solicit investments in the TEC Project.
The government’s case is being handled by the Office’s National Security and Cybercrime and Public Integrity Sections. Assistant United States Attorneys Andrew D. Reich and Meredith A. Arfa are in charge of the prosecution, with assistance from Paralegal Specialists Magdalena St. Surin and Rebecca Roth. Assistant United States Attorney Claire S. Kedeshian of the Office’s Asset Recovery Section is handling forfeiture matters.
The Defendant:
SHERRY XUE LI
Age: 53
Oyster Bay, New YorkThe Defendant Who Previously Pleaded Guilty:
LIANBO WANG
Age: 48
Oyster Bay, New YorkE.D.N.Y. Docket No. 22-CR-484 (GRB)
53 Defendants Convicted in Federal Prosecution of Brooklyn-Based “Bully Gang”Read the Press Release
Today, in federal court in Brooklyn, Romeo Gonzalez was the 53rd and final defendant to be convicted in the prosecution of members and associates of the Bully Gang, a violent street gang based in the Bedford-Stuyvesant neighborhood of Brooklyn. With Gonzalez’s conviction, all of the defendants charged in the case—across a series of Indictments and Criminal Informations—have been found guilty of their criminal conduct. Forty-eight defendants, including Gonzalez, pleaded guilty, and five defendants were convicted in two separate trials before United States District Judge Brian M. Cogan. The defendants were convicted of crimes including racketeering, murder, murder conspiracy, assault, gun trafficking, robbery, arson, extortion, using a gun during a crime of violence, drug trafficking, money laundering, and bribery. Gonzalez pleaded guilty today to conspiracy to possess cocaine and heroin with intent to distribute for his participation in the gang’s Maine drug trafficking conspiracy. The proceeding was held before United States Magistrate Judge Cheryl L. Pollak.
Jospeh Nocella, Jr., United States Attorney for the Eastern District of New York, Bryan Miller, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives, New York Field Division (ATF New York), and Jessica S. Tisch, Commissioner, New York City Police Department (NYPD), announced the convictions.
“These prosecutions have decimated a violent gang that engaged in drug trafficking on a massive scale, shootings, murder, bribery of corrections officers, and other crimes from New York to Maine,” stated United States Attorney Nocella. “The convictions of 53 Bully Gang members and associates were the result of a years’ long investigation and prosecution, and demonstrate our Office’s steadfast commitment to dismantling violent street gangs through our partnership with federal and local law enforcement.”
“This conviction demonstrates the strength of our collaborative efforts to dismantle violent criminal organizations that threaten our communities. Through the use of Crime Gun Intelligence, the ATF/NYPD Joint Firearms Task Force and the Eastern District of N.Y. have remained committed to holding armed gang members accountable and to restoring peace in the communities they seek to harm,” stated ATF New York Special Agent in Charge Miller.
As proven during the two trials in this case and set forth in court documents, the Bully Gang was a violent criminal organization that ran several complex and long-running illegal drug trafficking schemes. These schemes included a multistate drug and money laundering conspiracy involving dozens of stash houses located in Maine, and a conspiracy to smuggle drugs into Rikers Island jail facilities (Rikers), including by bribing prison guards. The illicit money generated from these schemes was used to benefit the gang by enriching its members and funding its operations to commit more crimes. To advance the gang’s operations and reputation, and to retaliate against rivals, members and associates of the gang also committed numerous acts of violence, including shootings, arson, and murder, and purchased illegal firearms to protect the organization and its members.
Since 2020, 53 defendants have been charged with a variety of crimes in connection with this investigation and, with today’s guilty plea by Gonzalez, all have been convicted. Gonzalez, who was charged in 2020, was a fugitive for nearly five years before he was apprehended in June 2025. With the government’s consent, two defendants are participating in the Special Options Services program for juvenile and young adult offenders.
Over a dozen defendants who were members and associates of the gang were convicted of racketeering. These defendants included Derrick Ayers, Bermon Clarke, Franklin Gillespie, Moeleek Harrell, Demetrius Johnson, Latrell Johnson, and Anthony Kennedy. Members and associates of the Bully Gang were convicted in connection with violent crimes, including:
- Ayers was convicted of murdering Jonathan Jackson, an associate of the rival “Stukes Crew.” Ayers shot Jackson multiple times at a gender reveal party for Harrell’s child on March 3, 2018, in Brooklyn.
- Gillespie was convicted of conspiring to murder Mike Hawley in Queens on April 15, 2020 to prevent him from informing authorities about the murder of Paul Hoilett in Brooklyn four days earlier.
- Ayers and Harrell were convicted of conspiring to murder the leaders of the Stukes Crew, whom they stalked by aggregating information from public databases, including the locations where their cars were ticketed. That stalking led to the Bully Gang carrying out at least three shootings in Crown Heights in October 2017 and June 2018.
- Ayers and Harrell were convicted of conspiring to murder Christopher King and assaulting King. They stalked King and ultimately shot him and an innocent bystander outside of a restaurant in Queens in October 2017.
- Gillespie was convicted of two gun-point robberies in Manhattan in August 2020. Latrell Johnson was also convicted of committing one of those two robberies with Gillespie.
- Latrell Johnson was convicted of an armed extortion of a store owner in Bedford-Stuyvesant, which lasted for several months in 2020. He was sentenced to more than 11 years’ imprisonment.
- Bermon Clarke was convicted of racketeering and arson. He set fire to one of the gang’s drug stash houses in Maine in 2017 while two people were inside. He was sentenced to 35 years’ imprisonment.
- Demetrius Johnson was convicted of attempting to murder Michael Reid, whom he shot over a drug debt related to the gang’s drug dealing in Maine.
Over 40 defendants, including Gonzalez, were convicted in connection with the Bully Gang’s Maine drug trafficking scheme. Ayers, Clarke, Holt, Gillespie, Harrell, and Kennedy had leadership roles in the years-long scheme to transport large quantities of drugs, including cocaine base, heroin and fentanyl, from New York and New Jersey to Maine, where members and associates of the Bully Gang sold the drugs out of stash houses. The narcotics were transported in vehicles equipped with concealed compartments, or “traps,” that were professionally installed. In addition to selling drugs in Maine, the defendants bought numerous firearms in Maine and brought those weapons to New York to further the gang’s violence. Participants in this gun trafficking scheme included Clarke, Janet Blood, Keon Grant, Nadine Heath, Amanda Huard, and Joanne Lydem.
Eleven defendants were convicted in connection with the gang’s scheme to smuggle drugs into Rikers Island. The organizers of this scheme included Harrell, Nehemie Eril, Paul Harris, and Kennedy. From 2019 to 2021, members and associates of the Bully Gang arranged for papers and comic books soaked in synthetic cannabinoids, also known as “K2,” to be delivered to Rikers. Once inmates received the K2-soaked papers, they sold smaller quantities to other inmates at a substantial profit. Some of the drug-soaked papers were mailed to inmates and some were smuggled inside the jail through visitors. Harrell and Kennedy were also convicted of bribing prison guards to smuggle drugs into Rikers.
When sentenced, the defendants convicted of violent crimes face mandatory minimum prison terms ranging from 5 years to 55 years with a maximum of life imprisonment.
The government’s case is being handled by the Office’s Organized Crime and Gangs Section. Assistant United States Attorneys Nicholas J. Moscow, Lindsey R. Oken, Joy Lurinsky, Victor Zapana, and Michael J. Castiglione are in charge of the prosecution, with the assistance of Lead Legal Administrative Specialist Samantha Ward and Paralegal Specialist Paul Padilla.
The Defendants:
JESSICA ALMEIDA
Age: 37
Detroit, MaineKASSIN APPLING (also known as “Killa” and “Kassim”)
Age: 37
Brooklyn, New YorkDERRICK AYERS (also known as “Dee” and “Mel”)
Age: 38
Rahway, New JerseyTYRONE BANKS (also known as “Ty Hitta”)
Age: 28
Brooklyn, New YorkJANET BLOOD
Age: 52
Troy, MaineDAYVON BOSTICK-SAMUELS (also known as “Daytoe”)
Age: 27
Brooklyn, New YorkTIRI BROWN
Age: 40
Brooklyn, New YorkJOHNNY CHILES
Age: 40
Brooklyn, New YorkBERMON CLARKE (also known as “G” and “Blue”)
Age: 33
Rahway, New JerseyMIKE GUSTAVO CONNOR (also known as “Gus”)
Age: 26
Brooklyn, New YorkRASHAAD CRAIG (also known as “Skeeno”)
Age: 29
Brooklyn, New YorkRONALD DAVIS (also known as “Ronno”)
Age: 33
Brooklyn, New YorkQUINTEN DELVALLE (also known as “Q”)
Age: 28
Brooklyn, New YorkELIZABETH DUECASTER
Age: 41
Searsport, MaineBRITTANY DUNCAN
Age: 30
Bayonne, New JerseyNEHEMIE ERIL (also known as “Poca”)
Age: 28
Orange, New JerseyCHRISTINA ESTEVEZ
Age: 36
Queens, New YorkLARON ESTRADA (also known as “Yetta”)
Age: 31
Brooklyn, New YorkERICA FAGGIOLE
Age: 48
MaineCOURTNEY FOSTER
Age: 30
Brooklyn, New YorkANTONIO FULTON (also known as “Tone”)
Age: 28
Brooklyn, New YorkFRANKLIN GILLESPIE (also known as “Spazz” and “Frankie Gino”)
Age: 34
Newark, New JerseyROMEO GONZALES
Age: 27
Brooklyn, New YorkAVERY GOODLUCK
Age: 35
Brooklyn, New YorkNIA GOVAN (also known as “Cam” and “V”)
Age: 34
Boston, MassachusettsKEON GRANT (also known as “Keys”)
Age: 39
Brooklyn, New YorkMOELEEK HARRELL (also known as “Moe Money”)
Age: 35
Brooklyn, New YorkPAUL HARRIS (also known as “Baldhead”)
Age: 36
Brooklyn, New YorkNADINE HEATH
Age: 58
Troy, MaineROBERT HOLT (also known as “Ricky” and “Ghost”)
Age: 38
Brooklyn, New YorkAMANDA HUARD
Age: 43
Raymond, MaineDEMETRIUS JOHNSON
Age: 29
Brooklyn, New YorkLATRELL JOHNSON (also known as “Barlie Buckz”)
Age: 30
Brooklyn, New YorkANTHONY KENNEDY (also known as “Biggie”)
Age: 39
Queens, New YorkTYQUAWN LANE (also known as “Bicks” and “Tah Tah”)
Age: 32
Brooklyn, New YorkJOANNE LYDEM
Age: 53
Garland, MaineTANEJIA MOORE
Age: 30
Brooklyn, New YorkDARIUS MURPHY
Age: 28
Brooklyn, New YorkJESSICA PELKEY
Age: 31
Presque Isle, MaineCHRISHAWN PENN (also known as “Prince”)
Age: 31
Brooklyn, New YorkMICHAEL PEREZ (also known as “White Mike”)
Age: 34
Brooklyn, New YorkJOELLE POCHE (also known as “Rico”)
Age: 25
Brooklyn, New YorkTERRELL RATLIFF (also known as “Rello”)
Age: 34
Brooklyn, New YorkMICHAEL REID (also known as “Half”)
Age: 44
Brooklyn, New YorkISAIAH TERRY SANDIFORD
Age: 25
Brooklyn, New YorkJAMEL SMITH
Age: 28
Bronx, New YorkAMY SONNENBLICK
Age: 53
Brooklyn, New YorkCHINASA STRACHAN
Age: 37
Brooklyn, New YorkNICOLETTE TOMPKINS
Age: 26
Westfield, MaineAMANDA WALTON (also known as “A”)
Age: 36
Portland, MaineDANIELLE WHITE
Age: 52
Swanville, MaineDEVIN-JOHN JASON WILLIAMS (also known as “Pun” and “Fat Boy”)
Age: 32
Brooklyn, New YorkDEMETTRIUS WRIGHT (also known as “Clean” and “Meexhi Brim”)
Age: 27
Brooklyn, New YorkE.D.N.Y. Docket No. 20-CR-239 (S-8) (BMC)
Oregon Man Sentenced to 60 Months for Swatting and Bomb Threats Scheme That Targeted Jewish Hospitals in New York City and Long IslandRead the Press Release
Earlier today in federal court in Brooklyn, Domagoj Patkovic was sentenced by United States District Judge Ramon E. Reyes, Jr. to 60 months’ imprisonment for conspiring to make threats and conveying false information about explosives. The defendant made hoax bomb threat phone calls to historically Jewish hospitals and care centers in New York City and on Long Island.
Joseph Nocella, Jr., United States Attorney for the Eastern District of New York and Christopher G. Raia, Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the sentencing.
“The defendant endangered patients and diverted precious law enforcement resources to advance his hateful agenda against people of the Jewish faith. His actions fed a rising tide of antisemitism in America,” stated United States Attorney Nocella. “Our Office will continue to prosecute dangerous bomb threats and swatting schemes to the fullest extent of the law, especially those motivated by hate, and those targeting vulnerable communities in hospitals and care centers.”
Mr. Nocella expressed his appreciation to the New York City Police Department and the Nassau County Police Department for their assistance on the case.
“Domagoj Patkovic will spend significant time in prison for his targeting of Jewish hospitals across the New York metro area with hoax bomb threats,” stated FBI Assistant Director in Charge Raia. “These hoax threats, motivated by Patkovic’s insidious antisemitic views, wasted law enforcement resources and put innocent lives at risk. The FBI will continue to bring to justice individuals who utilize swatting and false bomb threats to cause panic and unrest in our communities.”
As set forth in the indictment and in court filings, beginning at least as early as May 2021, the defendant and others made anonymous phone calls in which they made violent threats, including threats to detonate explosive devices, to Jewish hospitals and care centers within the Eastern District of New York, among other targets throughout the United States.
The defendant himself made threats in at least six separate calls to hospitals and also on a call with local law enforcement who had responded to a 911 call from one of the hospitals. To amplify his hate-filled actions, the defendant livestreamed the calls to others on an online social media and electronic communications platform. On several occasions, local police responded to the scene and conducted bomb sweeps. On at least one occasion in September 2021, the hoax bomb threat resulted in a partial evacuation and lockdown of an entire hospital on Long Island. No explosive devices were ultimately found in any of the locations.
The government’s case is being handled by the Office’s National Security and Cybercrime Section. Assistant United States Attorneys Alexander A. Solomon, Laura Zuckerwise, and Andrew D. Reich are in charge of the prosecution, with assistance from Trial Attorney James Donnelly of the National Security Division’s Counterterrorism Section and Paralegal Specialist Wayne Colon.
The Defendant:
DOMAGOJ PATKOVIC
Age: 31
Portland, OregonE.D.N.Y. Docket No. 24-CR-317 (RER)
José Adolfo “Fito” Macías Villamar, Leader of Los Choneros Transnational Criminal Organization Extradited to Brooklyn Federal Court to Face International Drug and Gun ChargesRead the Press Release
BROOKLYN, NY – José Adolfo Macías Villamar, also known as “Fito,” a citizen of Ecuador, will be arraigned today at the federal courthouse in Brooklyn for crimes committed as the leader of Los Choneros, a transnational criminal organization based in Ecuador that is responsible for significant drug trafficking into the United States, firearms trafficking from the United States, and acts of extreme violence. Macías Villamar will be arraigned on a seven-count superseding indictment charging him with international cocaine distribution conspiracy; international cocaine distribution; using firearms in furtherance of drug trafficking; smuggling firearms from the United States; and straw purchasing of firearms conspiracy. Macías Villamar will be arraigned before United States Chief Magistrate Judge Vera M. Scanlon after being extradited yesterday from Ecuador to the Eastern District of New York.
Joseph Nocella, Jr., United States Attorney for the Eastern District of New York; Robert Murphy, Acting Administrator of the U.S. Drug Enforcement Administration (DEA); L.C. Cheeks, Jr., Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives, Newark Field Division (ATF); and Jonathan Carson, Special Agent in Charge, U.S. Department of Commerce, Office of Export Enforcement, New York Field Office (OEE), announced the extradition and arraignment.
“As alleged, the defendant served for years as the principal leader of Los Choneros, a notoriously violent transnational criminal organization, and was a ruthless and infamous drug and firearms trafficker. The defendant and his co-conspirators flooded the United States and other countries with drugs and used extreme measures of violence in their quest for power and control,” stated United States Attorney Nocella. “This case demonstrates our Office’s commitment to identifying and targeting the leadership of such organizations, wherever they may be located, and bringing them to face justice here in the United States.”
“José ‘Fito’ Macias thought he could traffic poison into our country, smuggle American weapons back to his killers, and further his criminal enterprise using chaos and bloodshed. He was wrong,” stated DEA Acting Administrator Robert Murphy. “Today, the kingpin of Los Choneros faces justice on U.S. soil for his crimes.”
“ATF remains dedicated to working with our local, state, and federal partners to disrupt the shooting cycle by focusing on those individuals and criminal organizations responsible for the gun violence that plagues our neighborhoods,” stated ATF Special Agent in Charge Cheeks. “ATF will continue to collaborate with our law enforcement partners to address violent gang and drug-related activity that endangers the safety of our communities. Our joint efforts are essential in bringing accountability to violent offenders, combatting threats to the public, and reducing violent crime.”
As alleged in the indictment and other public filings, from at least 2020 to 2025, Macías Villamar was the principal leader of Los Choneros, the most violent and powerful transnational criminal organization in Ecuador. As the principal leader of Los Choneros, Macías Villamar employed members of the organization to carry out serious acts of violence on the organization’s behalf. At Macías Villamar’s direction, Los Choneros committed violent acts toward Ecuadorean law enforcement, Ecuadorian politicians, attorneys, prosecutors, and civilians. Los Choneros obtained many of its firearms and weapons by illegally trafficking and exporting them from the United States to Ecuador. As alleged, the defendant specifically employed individuals who purchased firearms, firearms components, and ammunition in the United States and then illegally smuggled them to Ecuador for use by Los Choneros.
In 2011, Macías Villamar went to prison in Ecuador on murder, robbery, weapons possession, and drug trafficking charges. He escaped in 2013 before being recaptured months later. During his second imprisonment in Ecuador, Macías Villamar used contraband cell phones and the internet to continue to direct the activities of Los Choneros and publish external communications and threats on Los Choneros’ behalf. In January 2024, he escaped from Ecuadorian prison a second time—just two days ahead of his planned move to a maximum-security facility. In response to his escape, Ecuador erupted in violence—including prison riots, gang attacks, kidnappings, and bombings—and the government of Ecuador declared a state of emergency. Ecuadorian authorities recaptured Macías Villamar on June 25, 2025, and he was extradited from Ecuador yesterday.
Macías Villamar and members and associates of his organization used firearms in furtherance of their weapon and drug trafficking activities, including machine guns, AK-47 assault rifles, and grenades. Macías Villamar and the Los Choneros organization have also been sanctioned by the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC).
The Justice Department’s Office of International Affairs and Ecuadorian authorities provided substantial assistance to secure the extradition of Macías Villamar. This marks Ecuador’s first extradition of an Ecuadorian national since an April 2024 popular referendum amended Ecuador’s constitution to allow for the extradition of Ecuadorian nationals.
This case is part of Operation Take Back America, a nationwide initiative that marshals the full resources of the Department of Justice to achieve the total elimination of cartels and transnational criminal organizations (TCOs) and protect our communities from the perpetrators of violent crime.
The charges in the superseding indictment are allegations, and the defendant is presumed innocent unless and until proven guilty. If convicted, the defendant faces a mandatory minimum sentence of 20 years in prison and up to life.
The government’s case is being handled by the Office’s International Narcotics and Money Laundering Section, and as part of the work of the Office’s Transnational Criminal Organizations Strike Force. Assistant United States Attorneys Chand Edwards-Balfour, Lorena Michelen, and David Berman are in charge of the prosecution.
The Defendant:
JOSÉ ADOLFO MACÍAS VILLAMAR (also known as “Fito”)
Age: 45
EcuadorE.D.N.Y. Docket No.: 25-CR-114 (FB)
Brooklyn Man Charged with Arson of 10 NYPD VehiclesRead the Press Release
Earlier today, at the federal courthouse in Brooklyn, a complaint was unsealed charging Jakhi McCray with arson for setting 10 New York City Police Department vehicles and a trailer on fire in a locked parking lot. McCray was arrested today and will make his initial appearance this afternoon before United States Magistrate Judge Vera M. Scanlon.
Joseph Nocella, Jr., United States Attorney for the Eastern District of New York; Bryan Miller, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms, and Explosives, New York Division (ATF); Jessica S. Tisch, Commissioner, New York City Police Department (NYPD); and Robert S. Tucker, Commissioner, New York Fire Department (FDNY) announced the arrest.
“This destructive act of arson was deliberate, dangerous, and deeply disruptive,” said United States Attorney Nocella. “Setting police vehicles ablaze is not a form of protest—it is a federal crime. Our Office will not tolerate violence or destruction that undermines law enforcement efforts to ensure public safety and will prosecute this individual to the fullest extent of the law.”
Mr. Nocella also expressed his thanks to the ATF-NYPD Arson & Explosives Task Force, the FDNY Marshalls, and the United States Marshalls Services NY/NJ Regional Fugitive Task Force for their valuable contribution to the case.
“Intentionally setting fire to police vehicles is a dangerous criminal act and a direct threat to public safety. The ATF Arson and Explosives Task Force — which includes ATF, the NYPD, and FDNY — is fully committed to identifying and bringing to justice anyone responsible for these dangerous and unlawful acts. This arrest demonstrates our shared resolve and unified approach to protecting our communities. We are grateful to the U.S. Attorney’s Office for the Eastern District of New York, U.S. Marshals Service NY/NJ Regional Fugitive Task Force, the NYPD and the FDNY for their continued partnership in pursuing justice,” stated ATF Special Agent in Charge Miller.
“The arson attack against New York City Police Department vehicles in Bushwick, Brooklyn was as cowardly as it was criminal,” stated NYPD Commissioner Tisch. “The defendant in this case may have wanted to send a message – but all he did was mobilize the full force of the NYPD, the ATF, and the FDNY to identify, locate, and arrest him. Now, through the work of the U.S. Attorney for the Eastern District of New York, he will face much-deserved justice. Thank you to all the NYPD detectives, as well as our law enforcement partners, who closed this case.”
“Burning a police vehicle is an intolerable crime that could have killed a police officer,” stated FDNY Commissioner Tucker. “We are grateful to our FDNY Fire Marshals for their role in investigating this crime, and our partners in law enforcement for their assistance in identifying the suspect. Arson is a serious crime that must be punished.”
According to the complaint, at 12:52 a.m. on June 12, 2025, McCray was recorded on surveillance video scaling a fence into a secure private lot for reserve NYPD vehicles assigned to precincts in northern Brooklyn. The lot contained numerous NYPD vehicles and was located on DeKalb Avenue between Wilson Avenue and Central Avenue in the Bushwick section of Brooklyn. McCray remained in the lot for approximately 32 minutes, during which he lit 10 NYPD vehicles and one trailer on fire.
At approximately 1:24 a.m., an NYPD officer arrived to inspect the lot. As he approached, the officer saw the fire and observed McCray attempting to escape by scaling a fence, then fleeing through an existing hole in the fence. Subsequently, NYPD personnel recovered at the scene a cigar lighter torch and a pair of sunglasses. They also discovered 22 retail fire starters and 10 BBQ dragon egg fire starters that were placed under three undamaged vehicles. It was later determined that the sunglasses had McCray’s fingerprints on them. The vehicles were ignited two days before protests were scheduled to be held over the June 14-15, 2025 weekend. The NYPD has estimated that the total replacement cost of for the damaged vehicles is over $800,000.
The charge in the complaint is an allegation, and McCray is presumed innocent unless and until proven guilty. If convicted, McCray faces a mandatory minimum sentence of five years’ imprisonment and a maximum of 20 years in prison.
The government’s case is being handled by the Office’s General Crimes Section. Assistant United States Attorney Rebecca M. Urquiola is in charge of the prosecution.
The Defendant:
JAKHI MCCRAY
Age: 21
Brooklyn, New YorkE.D.N.Y. Docket No. 25-MJ-238
Diamond District Fence Pleads Guilty in Connection with Large Scale Stolen Property OperationRead the Press Release
Earlier today, in federal court in Brooklyn, Dimitriy Nezhinskiy pleaded guilty to conspiring to receive stolen property that had been transported in interstate commerce. The proceeding was held before United States District Judge William F. Kuntz. When sentenced, Nezhinskiy faces a maximum sentence of five years’ imprisonment as well as restitution of approximately $2,500,000, and forfeiture of more than $2,500,000.
Joseph Nocella, Jr., United States Attorney for the Eastern District of New York; Christopher G. Raia, Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI); Jessica S. Tisch, Commissioner, New York City Police Department (NYPD); and Patrick J. Ryder, Commissioner, Nassau County Police Department (NCPD) announced the guilty plea.
“The defendant’s criminal conduct, purchasing items stolen from homes and businesses nationwide, provided a vital market for South American Theft Groups and other criminals to sell the proceeds of their crimes,” stated United States Attorney Nocella. “Our Office and our law enforcement partners are dedicated to ensuring that those who facilitate the victimization of people and businesses are brought to justice.”
“For more than five years, Dimitriy Nezhinskiy established a demand for stolen merchandise, which allowed South American Theft Groups to profit from repeated burglaries,” stated FBI Assistant Director in Charge Raia. “His purchases perpetuated a ripple of criminality targeting residences and business across the country. The FBI will never tolerate any individual who provides economic support to other criminal actors to continue their illicit operations in our city.”
“This defendant ran a black-market pipeline, buying stolen luxury goods from organized theft crews that targeted homes and businesses,” said NYPD Commissioner Tisch. “It was a deliberate operation that helped professional burglars prey on innocent people. Today's guilty plea sends a clear message: If you profit off stolen property, we will find you and dismantle your operation. I want to thank our detectives and federal partners for their work on this case.”
“Thanks to the hard work of our Detective Division, working closely with our local and federal partners, the residents of Nassau County can rest easy that we have shut down another criminal group that set out to victimize innocent people,” stated Nassau County Police Commissioner Ryder. “Let this be a message to the South American Theft Groups and anyone who chooses to work with them: our detectives will find you and bring you to justice if you prey on the good people of our County.”
According to court filings and statements the defendant made at today’s guilty plea, between approximately 2020 and 2025, the defendant conspired with his co-defendant, Juan Villar, and others, to receive and purchase stolen property, including jewelry, watches, handbags, and assorted luxury items that had been stolen outside of the state of New York and transported into New York. Nezhinskiy and Villar regularly served as “fences” for South American Theft Groups, burglary crews based out of South America, who traveled around the United States committing burglaries, typically targeting wealthier neighborhoods or jewelry vendors, and stealing luxury accessories like watches, jewelry, and handbags. Nezhinskiy and Villar’s operation, which consisted of purchasing stolen property from these crews for cash, provided an essential market for the stolen goods, perpetuating the dangerous criminal activities of the burglary and theft crews composed largely of foreign nationals.
As detailed in court filings and the guilty plea, evidence linked Nezhinskiy and Villar to thefts around the country, including at least two dozen residential or commercial burglaries across the United States between 2019 and 2025. Additionally, between October 2022 and January 2024, an undercover detective conducted seven controlled sales of purported stolen property, including high-end handbags and luxury accessories, to Nezhinskiy or Villar, or both, at their business location on 47th Street in Manhattan’s Diamond District. During these controlled sales, the undercover detective provided the defendants with items that the undercover told the defendants had been stolen, and received cash in exchange for the stolen goods.
Simultaneous with the defendant’s arrest in February 2025, law enforcement executed a search warrant at the location in the Diamond District where Nezhinskiy and Villar operated a pawn shop and seized large quantities of suspected stolen property, including dozens of high-end watches and jewelry. Law enforcement also recovered large quantities of cash and marijuana. A search warrant was also executed at storage units belonging to Nezhinskiy in New Jersey where an additional cache of suspected stolen property was found. From inside Nezhinskiy’s storage units, law enforcement recovered large quantities of luxury goods and clothing, including high-end handbags, wine, sports memorabilia, jewelry, artwork, and power tools consistent with those commonly used in burglaries and opening safes.
On June 16, 2025, Villar pled guilty to conspiring to receive stolen property that had been transported in interstate commerce and is pending sentencing.
The government’s case is being handled by the Criminal Section of the Office’s Long Island Division and the Office’s General Crimes Section. Assistant United States Attorneys Michael R. Maffei, Katherine P. Onyshko, and Sean M. Sherman are in charge of the prosecution.
The Defendants:
DIMITRIY NEZHINSKIY
Age: 43
North Bergen, New JerseyJUAN VILLAR
Age: 48
Queens, New YorkE.D.N.Y. Docket No. 25-CR-40 (WFK)
Former New York City Police Officer Sentenced to 40 Years’ Imprisonment for Sex Offenses Involving MinorsRead the Press Release
Earlier today, in federal court in Brooklyn, Christopher Terranova, a former New York City Police Department (NYPD) officer, was sentenced by United States District Judge Kiyo A. Matsumoto to 40 years’ imprisonment for sexually exploiting, attempting to sexually exploit, and enticing and coercing three 15-year-old boys and a 12-year-old boy. Terranova was employed as a police officer with the NYPD at the time of the charged conduct. A federal jury convicted Terranova of the charges in November 2024.
Joseph Nocella, Jr., United States Attorney for the Eastern District of New York and Christopher G. Raia, Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI) announced the sentence.
“The significant sentence the court imposed is a just outcome for the defendant’s abuse of his position as a police officer to groom and manipulate young boys, gain their trust, then sexually abuse and exploit them,” stated United States Attorney Nocella. “The victims showed courage in coming forward to expose this predator, and the sentence imposed ensures that no other child will be harmed by the defendant while he spends decades in prison.”
Mr. Nocella expressed his appreciation to the NYPD’s Internal Affairs Bureau for their assistance during the investigation.
“Christopher Terranova, a former NYPD officer, targeted, and sexually exploited multiple minors, including some who were also victims in unrelated crimes,” stated FBI Assistant Director in Charge Raia. “Terranova’s unthinkable actions violated his sworn duty to protect this community and reflect an egregious abuse of authority to satisfy his twisted desires. May today’s sentencing reflect the FBI’s commitment to disrupting any sexual predator from further victimizing our city’s most vulnerable victims.”
Between approximately December 2019 and May 2023, Terranova used social media to engage in sexually explicit conversations with underage boys and attempt to entice them into taking sexually explicit photographs of themselves and sharing them with Terranova. Terranova used popular social media applications to message and gain the trust of underage boys whom he encountered socially, online, or through his job as a police officer.
For example, between March 2023 and May 2023, Terranova targeted a 15-year-old boy he encountered at the 121st Precinct on Staten Island who was there to report that he had been robbed. Terranova obtained the victim’s cellphone number from the robbery complaint in an NYPD database and messaged him: “Hey… it’s Chris Terranova the cop you met at the 121 that day with mom, i just wanted to reach out to see if you were doing ok after the incident, I hate seeing these things happen to good Guys like yourself.” In subsequent messages, Terranova inquired about the investigation, referred to his role as a police officer, and asked the victim if he had any interest in the police department or its youth programs. Terranova also suggested, “If [sic] here too if you ever want to talk[.] I been through a lot myself over the years so just know that little bro.” Terranova then asked the victim to add him on “snap” or “the gram,” referring to Snapchat and Instagram. On Snapchat, Terranova began asking the victim sexually explicit questions, sent the victim a photograph of Terranova’s genitals, and asked for a sexually explicit photograph of the victim. The victim informed his mother about the inappropriate messages and she reported the matter to police.
Terranova also engaged in hands-on sex acts with two of his minor victims. One of those victims was the 15-year-old son of an acquaintance of Terranova. While giving that victim a ride home from a birthday party, Terranova brought the victim to a secluded location where he directed the victim to engage in sex acts with him.
Terranova met a third 15-year-old victim, who lived in Texas, on social media. Terranova used his status as a police officer to gain the victim’s trust. Terranova traveled to Texas at least 16 times to visit the victim, engaged in sexual acts with him and purchased a house in the victim’s neighborhood. In one message, Terranova stated: “You being with me. . . and making love to me is more than a sign of everything happens for a reason.”
Terranova also met a 12-year-old victim locally while Terranova was on-duty and in uniform. Terranova messaged the victim on Snapchat and began asking him sexually explicit questions and solicited sexually explicit photos.
This prosecution is part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
The government’s case is being handled by Office’s Human Trafficking and Civil Rights Section. Assistant United States Attorneys Rachel A. Bennek and Lauren A. Bowman are in charge of the prosecution, with the assistance of Paralegal Specialist Chelsea Guzman.
The Defendant:
CHRISTOPHER TERRANOVA
Age: 35
Staten Island, New YorkE.D.N.Y. Docket No. 23-CR-516 (KAM)
Brooklyn-Based “Euro 380” Gang Members Indicted on Racketeering Charges and Firearm-Related MurderRead the Press Release
Earlier today, in a federal court in Brooklyn, an 11-count superseding indictment was unsealed charging four Euro 380 gang members, Kashawn Mason, also known as “Jojo” and “Jojo Euro,” Daniel Horton, also known as “DayDay” and “DayDay Tz,” Ryan Nieves, also known as “Rocket” and “TooSturdy,” and Dylan Stanley, also known as “Brady,” with racketeering, firearm-related murder, multiple armed robberies, and assaults in-aid-of racketeering. Mason and Stanley are also charged with distribution and possession with intent to distribute fentanyl. Mason and Stanley were taken into custody today and will be arraigned this afternoon before United States Magistrate Judge James R. Cho. Horton and Nieves are presently in federal custody and will be arraigned at a later date.
Joseph Nocella, Jr., United States Attorney for the Eastern District of New York; Christopher G. Raia, Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI); Jessica S. Tisch, Commissioner, New York City Police Department (NYPD); Eric Gonzalez, Brooklyn District Attorney; and Anne T. Donnelly, Nassau County District Attorney announced the superseding indictment.
“As alleged in the superseding indictment, the defendants carried out a litany of violent crimes, including a senseless murder in furtherance of their gang, putting the Bedford Stuyvesant community at extreme risk of harm and turning housing developments into war zones,” stated United States Attorney Nocella. “Today’s superseding indictment speaks loudly about the commitment of our Office to reducing gun violence, making our communities safe for law abiding residents who have been living in fear of violent gangs and bringing gang members to justice. I commend our prosecutors and federal and state law enforcement partners for their tireless work dismantling gangs operating in Brooklyn and throughout the Eastern District.”
Mr. Nocella also thanked the Nassau County Police Department and the New York State Department of Corrections for their valuable assistance.
“To enhance their gang’s status and intimidate rivals, these four defendants allegedly participated in a myriad of criminal activity, including a retaliatory murder,” stated FBI Assistant Director in Charge Raia. “Their alleged actions allowed tensions to violently erupt in a residential community and submitted bystanders to a senseless territorial gunfight. Alongside our law enforcement partners, the FBI maintains its steadfast determination to disrupt any gangs’ reign of terror in our neighborhoods. This operation is part of Summer Heat, the FBI’s nationwide initiative targeting violent crime during the summer months.”
“The defendants in this case allegedly treated our Brooklyn neighborhoods like a warzone, firing 34 rounds in broad daylight, killing one person and injuring others, all to settle a gang score,” stated NYPD Commissioner Tisch. “They robbed businesses, pushed fentanyl, and recruited teenagers to carry out violence. Today’s indictment makes clear that we will not let violent gangs turn our communities into battlegrounds. I want to thank our investigators and law enforcement partners for their relentless work to bring these defendants to justice.”
“This was brazen, targeted violence that put entire communities at risk as these defendants allegedly opened fire near homes and businesses and robbed residents at gunpoint,” stated Brooklyn District Attorney Gonzalez. “Brooklyn saw record-low gun violence last year, and we are committed to holding accountable anyone who imperils our progress improving the safety of our neighborhoods. This indictment reflects the results of a strong collaboration between my Office, the NYPD, and federal law enforcement. I commend U.S. Attorney Nocella, his team, and all of our partners for their outstanding work."
“Gun violence and gang-related crime know no borders, which is why strong law enforcement partnerships are crucial in the fight against them,” stated Nassau County District Attorney Donnelly. “My office is proud to have assisted the U.S. Attorney’s Office, our local partners in New York City, and the FBI, in charging these defendants for their alleged crimes. By working together across jurisdictions, we are sending a message that anyone who perpetrates violence in our communities will be met with justice.”
As alleged in the superseding indictment and other court filings, Euro 380 gang is a violent street gang operating out of the Marcy Houses, a New York City Housing Authority (NYCHA) development in Bedford-Stuyvesant, Brooklyn. Euro 380 is a subset of the Untouchable Gorilla Stone Nation (UGSN), a parent gang with members located in Brooklyn and elsewhere. Members of Euro 380 have a longstanding rivalry with another gang known as the Bloodhound Brims and, more specifically, a subset of the Bloodhound Brims known as “900,” which also operates out of Bedford-Stuyvesant in the Tompkins and Sumner Houses, also NYCHA developments located less than two blocks from the Marcy Houses.
On September 30, 2023, Nieves, Stanley and two juveniles walked from the Marcy Houses to the Sumner Houses intending to shoot and kill rival 900 gang members after one of their fellow Euro 380 members was murdered three days earlier. After arriving at the Sumner Houses, Nieves and Stanley unleashed a fusillade of 34 rounds at a group of individuals they believed to be 900 gang members. Kyle Forde was killed and two other individuals suffered non-fatal gunshot wounds. The fatal shooting was allegedly ordered by Mason and another high-ranking Euro 380 member.
Additionally, in September 2023 and November 2023, the defendants carried out three robberies in Brooklyn of individuals, a smoke shop, and a bodega during which they displayed firearms or what appeared to be a firearm.
The charges in the superseding indictment are allegations, and the defendants are presumed to be innocent unless and until proven guilty. If convicted, defendants Mason, Nieves, and Stanley face a maximum of life in prison. Horton faces a maximum of 20 years’ imprisonment.
The government’s case is being handled by the Office’s Organized Crime and Gangs Section. Assistant United States Attorneys Andy Palacio, Raffaela S. Belizaire, and Megan Larkin are in charge of the prosecution.
The Defendants
KASHAWN MASON (also known as “Jojo” and “Jojo Euro”)
Age: 22
Brooklyn, New YorkDANIEL HORTON (also known as “DayDay” and “DayDay Tz”)
Age: 23
Brooklyn, New YorkRYAN NIEVES (also known as “Rocket” and “TooSturdy”)
Age: 20
Brooklyn, New YorkDYLAN STANLEY (also known as “Brady”)
Age: 22
Brooklyn, New YorkE.D.N.Y. Docket No. 24-CR-261 (ENV)
Long Island MS-13 Gang Member Pleads Guilty to Role in Two 2016 Murders in Nassau CountyRead the Press Release
Earlier today, in federal court in Central Islip, Kevin Cuevas Del Cid, also known as “Creeper,” “Malcriado,” “Sombra,” “Vinky,” and “Dabura,” a member of the Sailors Locos Salvatruchas Westside (Sailors) clique of La Mara Salvatrucha, also known as the MS-13, a transnational criminal organization, pleaded guilty to racketeering charges in connection with his participation in the May 21, 2016 murder of Kerin Pineda and the October 10, 2016 murder of Javier Castillo, both of whom were killed in Freeport, New York, as well as a conspiracy to distribute cocaine and marijuana. The proceeding was held before United States District Judge Joan M. Azrack.
Joseph Nocella, Jr., United States Attorney for the Eastern District of New York; Christopher G. Raia, Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI); and Patrick J. Ryder, Commissioner, Nassau County Police Department (NCPD), announced the guilty plea.
“Today, the defendant pleaded guilty to the brutal killings of two young people, whose murders demonstrate the MS-13’s well-established obsession with committing extreme acts of violence and complete disregard for human life,” stated U.S. Attorney Nocella. “Our Office and our law enforcement partners remain steadfast in our commitment to hold violent gang members accountable for the fear, destruction, and death they bring to our communities.”
“Kevin Cuevas Del Cid, an MS-13 member, slaughtered two victims based on their assumed alliance with a rival gang. Del Cid’s attacks reflect the gang’s brutal rhetoric designed to intimidate and punish any perceived threat to its organization,” stated FBI Assistant Director in Charge Raia. “The FBI remains committed to collaborating with our local law enforcement partners to eradicate this senseless gang violence from continuing to terrorize our communities.”
“We are grateful to our federal partners for working together to take these dangerous criminals off our streets,” stated NCPD Commissioner Ryder. “We have no tolerance for gang violence in Nassau County and we will never stop working to protect our citizens from these violent elements.”
According to court filings and statements by the defendant at the guilty plea proceeding, the defendant participated in the murder of 20-year-old Kerin Pineda, who was killed because of his suspected membership in the 18th Street gang. Specifically, in May 2016, Del Cid and other MS-13 members devised a plan where Del Cid created a fake Facebook profile of a young female to communicate with Pineda in order to lure Pineda out to be killed. On May 21, 2016, Pineda went to a secluded wooded area near the Merrick-Freeport border believing that he was meeting the young female he had been communicating with on Facebook, who was, in fact, Del Cid. When Pineda arrived, he was surrounded and violently attacked by Del Cid and the other MS-13 members, each of whom took turns hacking and slashing him with machetes. Pineda’s body was then buried in a hole that had been dug in the ground the day before in anticipation of the murder. Del Cid is the last of six previously charged MS-13 members to plead guilty to the Pineda murder.
Del Cid also pleaded guilty to the murder of 15-year-old Javier Castillo, who, like Pineda, was killed because the MS-13 suspected him of being a member of the 18th Street gang. On October 10, 2016, members of the Sailors clique in Brentwood convinced Castillo, who lived in Central Islip, to go with them to Freeport – approximately 30 miles away – to smoke marijuana. Del Cid and the other MS-13 members took Castillo to an isolated marsh area along the water in Cow Meadow Park, in Freeport, where they attacked and killed him, taking turns hacking him with a machete. Thereafter, the MS-13 members dug a hole and buried Castillo’s body, which was not recovered until one year later, in October 2017. With Del Cid’s conviction, more than a half dozen MS-13 have been charged and pleaded guilty in connection with the Castillo murder.
Del Cid, who was 16 years old at the time of the Pineda and Castillo murders, initially was charged by a juvenile information filed under seal on May 20, 2020. The government subsequently filed a motion to transfer Del Cid to adult status for prosecution, and an evidentiary hearing was held on June 3, 2022. On July 6, 2022, United States Circuit Judge Joseph F. Bianco, sitting by designation, issued a Memorandum and Order granting the government’s motion, and ordering Del Cid be prosecuted as an adult.
Today’s guilty plea is the latest achievement in a series of federal prosecutions by the United States Attorney’s Office for the Eastern District of New York targeting members of the MS-13, a violent transnational criminal organization. The MS-13’s leadership is based in El Salvador, Honduras, Guatemala, and Mexico, but the gang has thousands of members across the United States. With numerous branches, or “cliques,” the MS-13 is the most violent criminal organization on Long Island. Since 2003, hundreds of MS-13 members, including dozens of clique leaders, have been convicted on federal felony charges in the Eastern District of New York. A majority of those MS-13 members have been convicted on federal racketeering charges for participating in murders, attempted murders, and assaults. Since 2010, this Office has obtained indictments charging MS-13 members with carrying out more than 75 murders in the Eastern District of New York, resulting in the convictions of 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, which is comprised of agents and officers of the FBI, NCPD, Suffolk County Police Department, Nassau County Sheriff’s Department, Suffolk County Probation Office, Suffolk County Sheriff’s Office, the New York State Police, the Hempstead Police Department, the Rockville Centre Police Department, and the New York State Department of Corrections and Community Supervision.
The case is part of Operation Take Back America, a Department of Justice initiative aimed at eradicating transnational criminal organizations, combating violent crime, and restoring the rule of law.
This prosecution is also part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
The government’s case is being handled by the Criminal Section of the Office’s Long Island Division. Assistant United States Attorneys Paul G. Scotti, Justina L. Geraci, and Megan E. Farrell are in charge of the prosecution, with the assistance of Paralegal Specialist Kerry Ucci and Automated Litigation Specialist Michael Compitello.
The Defendant:
KEVIN CUEVAS DEL CID (also known as “Creeper,” “Malcriado,” “Sombra,” “Vinky,” and “Dabura”)
Age: 25
Freeport, New YorkE.D.N.Y. Docket No. 20-CR-251 (S-1) (JMA)
Former Federal Correctional Officer Pleads Guilty to Attempting to Smuggle Contraband into Metropolitan Detention Center in BrooklynRead the Press Release
Earlier today in federal court in Brooklyn, former federal correctional officer Najee Jackson pleaded guilty to attempted provision of contraband in prison. In January 2025, while working as a correctional officer at the Metropolitan Detention Center in Brooklyn (MDC-Brooklyn), the defendant attempted to smuggle vacuum-sealed bags of marijuana and cigarettes into the facility inside his Bureau of Prisons-issued protective vest. The proceeding was held before United States District Judge Orelia E. Merchant. When sentenced, Jackson faces up to five years in prison.
Joseph Nocella, Jr., United States Attorney for the Eastern District of New York, and Ryan T. Geach, Special Agent in Charge, Department of Justice, Office of the Inspector General (DOJ-OIG), announced the guilty plea.
“The defendant admitted to bringing contraband into the very jail he was charged with protecting,” stated United States Attorney Nocella. “His actions undermined the safety and security of his fellow correctional officers and the inmates at MDC-Brooklyn. As today’s conviction demonstrates, my Office will ensure that anyone who would abuse their position of trust at a federal prison is brought to justice.”
“The Office of the Inspector General remains committed to rooting out corruption within our federal prisons,” stated DOJ OIG Special Agent in Charge Geach. “Today’s guilty plea demonstrates that those who betray the trust and jeopardize the safety of their fellow correctional officers and citizens will face consequences for doing so.”
As set forth in court filings and on the record at today’s plea proceeding, Jackson became a correctional officer at MDC-Brooklyn in November 2023. On January 21, 2025, Jackson arrived at the jail around 12:15 a.m. to begin working a night shift. As with all staff members at MDC-Brooklyn, Jackson was required to pass through a metal detector and place his belongings on a conveyor belt that passes through an x-ray machine. Jackson made several failed attempts to clear the metal detector and eventually removed his Bureau of Prisons-issued protective vest, which was found to contain vacuum‑sealed bags of marijuana and cigarettes. Two days later, Jackson resigned from the Bureau of Prisons.
The government’s case is being handled by the Office’s Public Integrity Section. Assistant United States Attorney Russell Noble is in charge of the prosecution.
The Defendant:
NAJEE JACKSON
Age: 32
Brooklyn, New YorkE.D.N.Y. Docket No. 25-CR-67 (OEM)
United States Attorney Joseph Nocella, Jr. Announces Selection of Michael G. Considine as First Assistant United States AttorneyRead the Press Release
Today, United States Attorney Joseph Nocella, Jr. announced his selection of Michael G. Considine to serve as First Assistant United States Attorney (FAUSA) for the Eastern District of New York. Mr. Considine was sworn in today and will oversee the Criminal, Civil, Appeals, and Administrative Divisions of the United States Attorney’s Office.
“I am pleased to welcome Mike back to the Eastern District of New York as First Assistant U.S. Attorney. We have known each other for over 30 years since working together as federal prosecutors in this Office. Mike is not only an outstanding lawyer who brings a wealth of knowledge and experience to the Office, but he also possesses impeccable judgment and the utmost integrity,” stated United States Attorney Nocella.
Mr. Considine served as an Assistant U.S. Attorney in the Eastern District of New York from 1988 to 1994 when he was appointed to the position of Deputy Chief of the Long Island Offices in Garden City and Hauppauge, serving under then Long Island Chief Loretta Lynch. During his tenure, Mr. Considine supervised numerous complex and difficult criminal investigations and trials and specialized in organized crime prosecutions as well, serving as lead counsel in various trials and appeals, including those involving the Colombo and Gambino crime families.
Prior to his return, Mr. Considine was a litigation partner at the law firm Seward and Kissel LLP where he represented corporations, municipalities, and individuals in regulatory probes and parallel civil litigations and co-managed the firm’s Litigation Department and Government Investigations Practice Group. He was also appointed as independent monitor by the Securities and Exchange Commission for a leading global alternative investment firm, and by the DOJ and EPA as federal monitor for a midwestern utility pursuant to an administrative agreement.
After leaving the United States Attorney’s Office in 1995, Mr. Considine was a litigation partner at Day Pitney LLP, where he chaired the firm’s Government Investigations Practice Group. He was selected by DOJ’s Enron Task Force as federal monitor to oversee an international bank’s compliance with the terms of a Deferred Prosecution Agreement (DPA). Mr. Considine was subsequently appointed as a member of the federal monitoring team to oversee a national health care services provider’s compliance with federal and state health care laws, regulations and programs, also as part of a DPA.
Mr. Considine is currently Vice-Chair of the Federal Bar Council and serves on its Executive Committee and Audit Committee. He has written and co-authored numerous articles on government investigations, corporate compliance, and representation of individuals and companies in parallel criminal and civil proceedings.
Mr. Considine is a graduate of Georgetown University Law Center, Boston College, and Fordham Preparatory School. He served as law clerk to the Honorable Shirley W. Kram, of the United States District Court for the Southern District of New York prior to his appointment as an Assistant U.S. Attorney.
United Kingdom Citizen Extradited to Face Charges in $99 Million Wine FraudRead the Press Release
Earlier today, in federal court in Brooklyn, James Wellesley was arraigned following his extradition from the United Kingdom (UK), where he was arrested in 2022. In 2022, Wellesley, along with his co-defendant Stephen Burton, was charged with wire fraud conspiracy, wire fraud, and money laundering conspiracy in connection with a scheme perpetrated through Bordeaux Cellars, a company he and Burton operated. Wellesley was arraigned today before United States Magistrate Judge Robert M. Levy. Burton was extradited from Morocco in 2023 and is currently pending trial. Wellesley was ordered detained pending trial.
Joseph Nocella, Jr., United States Attorney for the Eastern District of New York; Christopher G. Raia, Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Ricky J. Patel, Special Agent in Charge, Homeland Security Investigations, New York (HSI New York) announced Burton’s arraignment.
“Today’s arraignment sends a message to all perpetrators of global fraud schemes that my Office will work tirelessly to ensure they answer for crimes committed in the United States,” stated United States Attorney Nocella. “We will not rest in our efforts to seek justice for victims of fraud.”
“James Wellesley and his business partner allegedly concocted an elaborate scheme defrauding investors out of millions of dollars to finance their own personal expenses. Their alleged deceit spread across years and continents,” stated FBI New York Assistant Director in Charge Raia. “Today’s arraignment signals to all criminals that the FBI will practice the same resolve in bringing perpetrators to justice.”
“James Wellesley and his co-conspirator are accused of masterminding their nearly $100 million international fraud scheme that exploited the unsuspecting public, including New Yorkers, for their own selfish enrichment. As alleged, the defendants claimed Bordeaux Cellars boasted a high-value wine stockpile and a clientele of ‘high-net-worth wine collectors’ – and in turn profited handsomely – all while they swindled investors out of hundreds of thousands of dollars, if not more,” stated HSI New York Special Agent in Charge Patel. “Let it be known, regardless of the nature of the transnational criminal scheme, HSI New York, alongside our law enforcement partners, will continue to adapt and evolve to fight global and domestic financial crimes wherever and whenever possible.”
The indictment alleges that from at least June 2017 and continuing through February of 2019, the defendants posed as executives Bordeaux Cellars. The defendants solicited investors, including residents of the Eastern District of New York, at, among other places, investor conferences held in the United States and overseas. The defendants claimed to investors that Bordeaux Cellars brokered loans between investors and high-net-worth wine collectors that would be fully collateralized by high-value collections of wine. The defendants promised that investors would receive regular interest payments from the borrowers, and that Bordeaux Cellars would keep custody of the wine, securing the loans while the loans were outstanding. As alleged, these representations were lies, the “high-net-worth wine collectors” did not actually exist, and Bordeaux Cellars did not maintain custody of the wine purportedly securing the loans. Instead, the defendants used incoming loan proceeds to make fraudulent interest payments to investors and for their own personal expenses, resulting in $99 million dollars’ worth of misdirected funds.
The charges in the indictment are allegations, and the defendants are presumed innocent unless and until proven guilty. If convicted, the defendants face up to 20 years in prison.
The Justice Department’s Office of International Affairs (OIA) provided significant assistance in securing Wellesley’s arrest and extradition from the UK. This Office thanks UK authorities for their assistance in this matter.
The government’s case is being handled by the Office’s Business and Securities Fraud Section. Assistant United States Attorney Benjamin Weintraub is in charge of the prosecution.
The Defendants:
STEPHEN BURTON
Age: 60
United KingdomJAMES WELLESLEY
Age: 58
United Kingdom
E.D.N.Y. Docket No. 22-CR-79 (PKC)Three Defendants Convicted of Violent Kidnapping and Extortion Attempt in Astoria, QueensRead the Press Release
A federal jury today in Brooklyn convicted Lesly Valentin, Aasim Boone, and Jarrett Bruce (also known as “Inf,” “Infinite,” and “Infamous”), of kidnapping conspiracy, transmission of interstate threats with intent to extort, and attempted obstruction of justice. The verdict followed a three-week trial before United States District Judge Rachel P. Kovner. When sentenced, the defendants face up to life in prison.
Joseph Nocella, Jr., United States Attorney for the Eastern District of New York and Christopher G. Raia, Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the verdict.
“This was a heinous crime in which the defendants targeted a victim, abducted him from outside of his home, and subjected him to barbaric acts of torture and cruelty, all for financial gain,” stated United States Attorney Nocella. “Once their crimes were uncovered, the defendants tried to destroy evidence. With today’s verdict, the defendants’ efforts to escape accountability have failed and they now face significant punishment.”
Mr. Nocella thanked the Joint Violent Crimes Task Force, which is comprised of agents from the FBI and detectives from the New York City Police Department, for their assistance with the investigation.
As proven at trial, Boone, Bruce, and Valentin conspired to kidnap the victim on December 9, 2022. The victim was seized outside of his apartment complex in Astoria, Queens. After forcing the victim at gunpoint into a vehicle, Boone, Bruce, and Valentin drove the victim to New Jersey, subjected him to escalating forms of torture, and held him for nearly five hours. During the attack, Boone, Bruce, and Valentin beat the victim with a gun, poured bleach on him, burned his back and legs with a blowtorch, and sliced the victim’s ear with a knife. The victim was finally released on the Upper East Side of Manhattan. Several days after the kidnapping, Valentin sent text messages to the victim, threatening further harm to him and his family if he failed to provide his abductors $150,000 in cash and 50 pounds of marijuana. After their scheme was uncovered, defendant Boone attempted to destroy electronic evidence tying him to the commission of the crime.
The government’s case is being supervised by the Office’s International Narcotics and Money Laundering Section. Assistant United States Attorneys Joshua B. Dugan, Lorena Michelen, and Andrew Wang are in charge of the prosecution with the assistance of Paralegal Specialist Wesley Roberts.
The Defendants:
AASIM BOONE
Age: 42
Englewood, New JerseyJARRETT BRUCE (also known as “Inf,” “Infinite,” and “Infamous”)
Age: 41
Englewood, New JerseyLESLY VALENTIN
Age: 39
Asbury Park, New JerseyE.D.N.Y. Docket No. 23-CR-292 (S-4) (RPK)
Leader of Mexican Sex Trafficking Organization Sentenced to 188 Months in PrisonRead the Press Release
Earlier today, at the federal courthouse in Brooklyn, Hugo Hernandez-Velazquez was sentenced by United States District Judge William F. Kuntz to 188 months’ imprisonment for sex trafficking multiple victims by force, fraud, and coercion. The defendant was extradited from Mexico to the United States in February 2021. He pleaded guilty to one count of sex trafficking in April 2023. Hernandez-Velazquez will be deported to Mexico after completing his sentence.
Joseph Nocella, Jr., United States Attorney for the Eastern District of New York and Ricky J. Patel, Special Agent in Charge, Homeland Security Investigations, New York (HSI New York), announced the sentence.
“For years, the defendant and his siblings operated an illegal, abusive, and exploitative sex trafficking operation that stripped victims of their dignity and subjected them to inhumane violence,” stated United States Attorney Nocella. “It is my hope that the prosecution of their tormentors and the punishment meted out will provide a measure of closure for the brave survivors who assisted the investigation and will help them on their path to healing.”
“For nearly a decade, the defendant and his family oversaw a vicious sex trafficking campaign wrought with violence, manipulation, coercion, and outright force against women whom they lured into romantic relationships through false promises of love and support,” stated HSI Special Agent in Charge Patel. “Every day, victims are targeted for human trafficking and other vile forms of exploitation and abuse, often at the hands of their own spouses or purported caretakers. Today's sentencing is no doubt a direct result of the bravery of each survivor who courageously spoke up. Together with our partners, HSI is unflinchingly committed to investigating and vigorously pursuing anyone, anywhere, who sexually exploits the very individuals they claim to care for.”
Mr. Nocella commended HSI New York’s Trafficking in Persons Unit for leading the investigation of the Hernandez-Velazquez Sex Trafficking Organization; thanked the HSI Mexico City Attaché Office, the Department of Justice’s Office of International Affairs, the U.S. Department of State, Interpol, International Affairs Department of the Attorney General’s Office in Mexico, the Law Enforcement Unit of the State of Tlaxcala Attorney General’s Office, Interpol Mexico, and the New York City Police Department for their assistance; and praised the government of Mexico for its role in advancing bilateral anti-trafficking enforcement efforts. Mr. Nocella 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.
Between approximately 2001 and 2009, the defendant and his siblings, Ernesto, Giovanni and Arcelia Hernandez-Velazquez, ran the Hernandez-Velazquez Sex Trafficking organization (the family organization) based in Mexico. The family organization used force, fraud, and coercion to cause young women in Mexico to engage in prostitution in the United States. Members of the family organization lured victims into romantic relationships through false promises of love and support. The victims were pressured to travel to the United States with promises of a better life with their trafficker. Once smuggled into the United States, the victims were forced to engage in prostitution. The family organization maintained a base in Queens, New York, where victims would reside while they were forced to work in New York and other states, including Alabama, Connecticut, Florida, Georgia, Louisiana, Maryland, Massachusetts, Mississippi, New Jersey, New York, North Carolina, Pennsylvania, Rhode Island, South Carolina, Tennessee, and Virginia. The defendant subjected his victims to physical beatings, forced abortions, and threats. The defendant also threatened violence to the victims’ families to force the victims to continue prostituting on his behalf.
Judge Kuntz previously sentenced Hernandez-Velazquez’s siblings who also pleaded guilty to sex trafficking: Ernesto Hernandez-Velazquez and Giovanni Hernandez-Velazquez were each sentenced to 210 months’ imprisonment; and Arcelia Hernandez-Velazquez, who pleaded guilty to a Mann Act Violation, was sentenced to time served after approximately 60 months in U.S. custody.
The investigation, prosecution, bilateral enforcement action, and extradition of the defendant from Mexico was 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 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 175 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 government’s case is being handled by the Office’s Human Trafficking and Civil Rights Section. Assistant United States Attorney Erin Reid is in charge of the prosecution.
The Defendant:
HUGO HERNANDEZ-VELAZQUEZ (also known as “Norberto Hernandez Velasquez” and “La Gallina”)
Age: 48
MexicoDefendants Previously Sentenced:
ERNESTO HERNANDEZ-VELAZQUEZ (also known as “Chapas”)
Age: 45
Queens, New YorkGIOVANNI HERNANDEZ-VELAZQUEZ
Age: 37
MexicoARCELIA HERNANDEZ-VELAZQUEZ (also known as “La Gordis”)
Age: 46
Queens, New YorkE.D.N.Y. Docket No. 19-CR-306 (S-1) (WFK)