Eastern District of New York
Press releases recorded for this federal judicial district.
Axius Ceo Roland Kaufmann Pleads Guilty to Conspiracy to Pay Bribes in Stock SalesRead the Press Release
WASHINGTON – Roland Kaufmann, CEO of Axius Inc., pleaded guilty today in Brooklyn for conspiring to bribe stock brokers, announced Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division and U.S. Attorney for the Eastern District of New York Loretta E. Lynch.
Kaufmann, 60, a Swiss citizen, pleaded guilty before U.S. District Judge John Gleeson in the Eastern District of New York to one count of conspiracy to violate the Travel Act.
“Roland Kaufmann conspired to bribe stock brokers and fleece investors in Axius stock,” said Assistant Attorney General Breuer. “He took the crooked path, and now faces the prospect of years in prison. Although he committed his crimes from outside the United States, U.S. authorities tracked him down and he has now been held to account. This case shows our determination to prosecute all those who seek to corrupt U.S. securities markets.”
“Roland Kaufman sought to game the system with his scheme to bribe stockholders to help him artificially raise the price of his company’s stock,” said U.S. Attorney Lynch. “He reached across the ocean to insert his deception into U.S. markets, thereby placing investors at risk. We will continue to bring our resources to bear against anyone who would harm the integrity of United States capital markets for their own personal financial gain, even when those who try to exploit our investors are hatching their schemes from abroad.”
“The flagrant market manipulation engaged in by Kaufmann was designed to make him rich,” said George Venizelos, Assistant Director in Charge, FBI New York Field Office. “Absent the undercover agent, the scheme also would have made honest investors much poorer. The FBI is committed to policing the securities industry to prevent unjust enrichment for cheaters, victimization of honest investors, and the undermining of public confidence in market integrity.”
“This case demonstrates the value of a coordinated approach by law enforcement authorities,” said Richard Weber, Chief, Internal Revenue Service (IRS) Criminal Investigation. “As a result of the collaborative effort in this investigation, investors were protected from further financial harm. IRS Criminal Investigation is always ready to lend its financial investigative expertise to the investigation of complex and sophisticated financial crimes.”
Kaufmann admitted to conspiring with co-defendant Jean-Pierre Neuhaus, another Swiss citizen, to violate the Travel Act by bribing stock brokers. Axius, which refers to itself as a “holding company and business incubator” that develops other businesses, is incorporated in Nevada, and its principal offices are in Dubai, United Arab Emirates. As part of the scheme, Kaufmann and Neuhaus, while located overseas, enlisted the assistance of an individual they believed had access to a group of corrupt stock brokers; this individual was in fact an undercover law enforcement agent. Kaufmann and Neuhaus believed that the undercover agent controlled a network of stockbrokers in the United States with discretionary authority to trade stocks on behalf of their clients.
According to court documents, Kaufmann and Neuhaus instructed the undercover agent to direct brokers to purchase Axius shares that were owned or controlled by Kaufmann in return for a secret kickback of approximately 26 to 28 percent of the sale price. Kaufmann and Neuhaus instructed the undercover agent as to the price the brokers should pay for the stock, and Kaufmann specifically instructed the undercover agent, in Neuhaus’s presence, that the brokers would have to pay gradually higher prices for the shares they were buying. Kaufmann and Neuhaus directed the undercover agent that the brokers were to refrain from selling the Axius shares they purchased on behalf of their clients for a one-year period. By preventing sales of Axius stock, Kaufmann and Neuhaus intended to maintain the fraudulently inflated share price for Axius stock. Kaufmann and Neuhaus agreed to sell approximately $3.5 million to $5 million worth of Axius shares through the undercover agent’s stock brokers.
Kaufmann and Neuhaus were arrested on March 8, 2012. On Oct. 10, 2012, Neuhaus pleaded guilty to conspiracy to commit securities fraud and violate the Travel Act.
At sentencing, scheduled for May 17, 2013, Kaufmann faces a maximum penalty of five years in prison. As part of his plea agreement, Kaufmann agreed to forfeit $298,740 that victims lost as a result of the crime.
This case is being prosecuted by Trial Attorney Justin Goodyear of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Ilene Jaroslaw of the Eastern District of New York. The case was investigated by the FBI New York Field Office and the IRS New York Field Office. The department also thanks the Securities and Exchange Commission for its assistance in this matter.
Brooklyn Resident from Albania Sentenced to 15 Years’ Imprisonment for Attempting to Support TerrorismRead the Press Release
Earlier today, at the United States District Court for the Eastern District of New York in Brooklyn, New York, Agron Hasbajrami, an Albanian citizen and Brooklyn resident, was sentenced to 15 years in prison for attempting to provide material support to terrorists. Hasbajrami will be removed from the United States at the conclusion of his sentence.
The sentence was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York; Lisa O. Monaco, Assistant Attorney General for the National Security Division; George Venizelos, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office; and Raymond W. Kelly, Commissioner, New York City Police Department.
As stated on the record during the guilty plea and sentencing proceedings and according to court filings, in early 2011, while living in Brooklyn, Hasbajrami exchanged email messages with an individual in Pakistan who indicated that he was a member of an armed group that had murdered American soldiers. Hasbajrami sent the individual more than $1,000 to support the jihadist cause. Then, in pursuit of his goal to engage personally in violent jihad, Hasbajrami arranged to meet the individual in the Federally Administered Tribal Area of Pakistan (the “FATA”). In one email message, Hasbajrami stated that he wished to travel abroad to “marry with the girls in paradise,” using jihadist rhetoric to describe his desire to die as a martyr.
In September 2011, Hasbajrami purchased a one-way airplane ticket to travel to the Middle East on his way to the FATA to fight violent jihad. He was arrested by the FBI’s Joint Terrorism Task Force at John F. Kennedy International Airport in Queens, New York, as he embarked on his one-way flight. At the time of his arrest, Hasbajrami was carrying a tent, boots, and cold-weather gear. A search of Hasbajrami’s residence in Brooklyn revealed, among other items, a note reading “Do not wait for invasion, the time is martyrdom time.” In April 2012, Hasbajrami pled guilty in federal district court in Brooklyn to attempting to provide material support to terrorists by joining a jihadist fighting group overseas. United States District Judge John Gleeson imposed sentence earlier today.
“Hasbajrami sought to use New York as the launching pad for his terrorist scheme. Hoping to die a martyr to the cause of violent jihad, he will spend 15 years of his remaining days in federal prison. In addition, this sentence should serve as a strong deterrent to anyone who would consider supporting terrorism or launching an operation from the United States,” stated United States Attorney Lynch. “This case exemplifies how law enforcement works to protect both our citizens at home and our servicemen abroad.” Ms. Lynch thanked the Department of Homeland Security, Immigration and Customs Enforcement, the United States Secret Service, the other federal, state, and local law enforcement agencies who participate in the FBI’s Joint Terrorism Task Force in New York, and the Department of Justice’s Counterterrorism Section, for their work on the case.
FBI Assistant Director-in-Charge Venizelos stated, “The global nature of our effort to prevent terrorism works in two directions. We continue to work with overseas partners to thwart those plotting abroad to do harm here. Today’s sentence shows the result of our efforts to prevent someone here from going overseas to endanger or kill Americans abroad.”
The government’s case was prosecuted by Assistant United States Attorneys Seth D. DuCharme and Matthew S. Amatruda with assistance provided by Trial Attorney Courtney Sullivan of the Counterterrorism Section of the Department of Justice.
The Defendant:
AGRON HASBAJRAMI
Age: 28U.S. Attorneys Loretta E. Lynch and Sally Yates to Lead Attorney General’s Advisory CommitteeRead the Press Release
WASHINGTON – Attorney General Eric Holder announced today the appointment of U.S. Attorney for the Eastern District of New York Loretta E. Lynch as chair of the Attorney General’s Advisory Committee of U.S. Attorneys (AGAC). Attorney General Holder also appointed U.S. Attorney for the Northern District of Georgia Sally Quillian Yates to serve as vice chair. Both appointments became effective Jan. 1, 2013.
“I’m confident that U.S. Attorneys Lynch and Yates have the expertise and dedication to lead this critical group in a challenging time, as we work to fulfill the department’s commitment to protecting the American people,” said Attorney General Holder. “I’m deeply grateful for their service and leadership – and look forward to continuing to work closely with all 94 of our United States Attorneys.”
U.S. Attorney Lynch was appointed to the AGAC in May 2010 and has served as vice chair since 2011. She replaces U.S. Attorney for the District of New Jersey Paul J. Fishman. U.S. Attorney Lynch has also served as the chair for the Advisory Committee’s Office, Management and Budget Subcommittee.
U.S. Attorney Yates was appointed to the AGAC in May 2010 and has served on several subcommittees including Civil Rights, White Collar Fraud, and Criminal Practice and Law Enforcement Coordination/Victim/Community Issues.
Attorney General Holder also thanked U.S. Attorney Fishman for serving as chair of the AGAC for the past two years. “U.S. Attorney Fishman’s leadership, vision and unselfish dedication have brought the U.S. Attorney community together to address a myriad of law enforcement issues. His guidance and sage counsel have been invaluable to department leadership as we work together to enforce the laws of this nation.”
The AGAC was created in 1973 to serve as the voice of the U.S. Attorneys and to advise the attorney general on policy, management and operational issues impacting the offices of the U.S. Attorneys.
Alleged Al-qaeda Operative Extradited to United States for Role in International Terrorism Plot Targeting New York City, United Kingdom, and ScandinaviaRead the Press Release
Abid Naseer, a Manchester-based United Kingdom resident, was extradited from the United Kingdom to Brooklyn, New York, today to face charges for his alleged role in an international al-Qaeda plot to attack targets in the United States and Europe. Naseer will make his initial appearance on Monday, January 7, at 2:00 p.m., before The Hon. Raymond J. Dearie of the United States District Court for the Eastern District of New York. Naseer is the eighth defendant to face charges in Brooklyn federal court related to the al-Qaeda plot involving Adis Medunjanin, Najibullah Zazi, and Zarein Ahmedzay.
The extradition was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York; Lisa O. Monaco, Assistant Attorney General for the National Security Division; George Venizelos, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office; and Raymond W. Kelly, Commissioner, New York City Police Department.
According to the indictment, other court filings, evidence presented to the court in support of Naseer’s extradition, and evidence from the trials of Adis Medunjanin and Mohammed Wali Zazi in the Eastern District of New York, in approximately September 2008, al-Qaeda leaders in Pakistan recruited Medunjanin, Najibullah Zazi, and Zarein Ahmedzay, three friends from New York City, to conduct a suicide bombing attack in New York City.1 The al- Qaeda leaders, including Adnan El-Shukrijumah and Saleh al-Somali, communicated with Zazi about the plot through an al-Qaeda facilitator named “Ahmad” in Peshawar, Pakistan. In early September 2009, after Medunjanin, Zazi, and Ahmedzay had selected the New York City subway system as their target, Zazi emailed with “Ahmad” in Pakistan about the proper ingredients for the main charge explosive, which included flour and oil. Zazi pleaded guilty to his role in the plot on February 22, 2010; Ahmedzay pleaded guilty on April 23, 2010; and Medunjanin was convicted after trial on May 1, 2012.
The investigation by authorities in the United States and United Kingdom revealed that “Ahmad” was also communicating with Naseer. Naseer, like Zazi, was in Peshawar, Pakistan in November 2008, according to the court filings. After returning to the United Kingdom, Naseer sent messages back and forth to the same email account that “Ahmad” was using to communicate with the American-based al-Qaeda cell on behalf of Saleh al-Somali, the indictment and court filings allege. In the messages, Naseer used coded language to refer to different types of explosives. At the culmination of the plot, in early April 2009, Naseer, again using coded language, told “Ahmad” that he was planning a large “wedding” for numerous guests between April 15 and 20, 2009, and that “Ahmad” should be ready. Notably, evidence at Medunjanin’s trial established that “Ahmad” and Zazi had agreed on a similar code to mean the New York City attack was ready to be executed, and that Zazi emailed Ahmad that “the marriage is ready” just before he drove to New York in early September 2009.
On April 8, 2009, Naseer and several associates were arrested in the United Kingdom. In connection with these arrests, U.K. authorities conducted searches of the plotters’ homes, where they found large quantities of flour and oil, as well as surveillance photographs of public areas in Manchester and maps of Manchester’s city center posted on the wall, with one of the locations from the surveillance photographs highlighted.
On January 30, 2012, three defendants were also convicted in a Norwegian court of plotting a similar terrorist attack in Denmark as part of the same overall multinational al- Qaeda conspiracy. During that trial, the United States made available to the Norwegian prosecutors three witnesses who also pleaded guilty to terrorism offenses in the Eastern District of New York: Najibullah Zazi, Zarein Ahmedzay, and Bryant Neal Vinas.
Naseer is charged with providing and conspiring to provide material support to al-Qaeda and conspiracy to use a destructive device in relation to the U.K. branch of the plot. He faces a maximum sentence of life imprisonment if convicted of all counts.
“The defendant is one of a long line of terrorist suspects extradited to these shores and this courthouse to face justice for their efforts to wreak havoc here and overseas. As alleged, this defendant was instrumental in one tentacle of an international plot that reached to New York, Norway, and the United Kingdom,” said United States Attorney Lynch. “Those responsible for terrorist plots or attacks will be investigated, charged, and prosecuted, whether they are arrested here in the United States, or abroad.” Ms. Lynch also expressed her gratitude to the law enforcement personnel, both domestic and foreign, who took part in the investigation.
“Today’s extradition underscores the importance of international cooperation in disrupting transnational terrorism threats. I thank our counterparts in the United Kingdom for their assistance in this investigation as well as the many U.S. agents, analysts, and prosecutors who helped bring about these charges,” said Assistant Attorney General for National Security Monaco.
FBI Assistant Director-in-Charge Venizelos said, “The extradition of Naseer demonstrates not only the long arm of American justice. It also shows the determination and commitment of governments around the world to work in common cause to thwart alleged international terrorist conspiracies. Plotting in one country to do harm in another does not provide cover for terrorists. It makes them targets in two countries.”
Police Commissioner Kelly said, “Here’s to our special relationship. New York and London, and now Manchester, share a history of terrorism and outstanding law enforcement cooperation in bringing those allegedly responsible to justice, as this case illustrates. Al-Qaeda has attacked on both sides of the Atlantic, and it has been brought to justice on both shores too.”
The government’s case is being prosecuted by David Bitkower, James P. Loonam, Berit W. Berger, and Zainab Ahmad of the U.S. Attorney’s Office for the Eastern District of New York, with assistance from the Counterterrorism Section of the Justice Department’s National Security Division. Assistance was also provided by Lystra Blake, Associate Director of the Office of International Affairs.
The Defendant:
ABID NASEER
Age: 26_____________________________
1 The charges contained in the indictment are merely allegations, and the defendant is presumed innocent unless and until proven guilty.