Southern District of New York
Press releases recorded for this federal judicial district.
Former Art Advisor Lisa Schiff Sentenced to 30 Months in Prison for Defrauding ClientsRead the Press Release
Matthew Podolsky, the Acting United States Attorney for the Southern District of New York, announced today that LISA SCHIFF, a Manhattan-based art advisor focused on contemporary art, was sentenced today to 30 months in prison by U.S. District Judge J. Paul Oetken for perpetrating a multi-year scheme in which she defrauded the clients of her art advisory business of approximately $6.5 million in connection with the purchase and sale of approximately fifty-five artworks.
Acting U.S. Attorney Matthew Podolsky said: “For five years, Lisa Schiff breached the trust of her art advisory clients by diverting millions of dollars to pay her own business and personal expenses, and to fund a lavish lifestyle. Because of Schiff’s lies, and her illusory art advisory scam, Schiff will now serve a substantial sentence in prison.”
According to the Information, plea agreement, and statements made in court:
From 2018 through May 2023, SCHIFF engaged in a scheme to defraud clients of her art advisory business, Schiff Fine Art (“SFA”) by diverting her clients’ funds—profits from the sale of her clients’ artworks or payments they made to purchase artwork—to pay her own personal and business expenses. SCHIFF advised clients regarding the purchase and sale of artworks and bought and sold artworks on behalf of clients in exchange for a commission. In her role as an art advisor, SCHIFF acted as an intermediary between art galleries and auction houses, and her clients, who were art collectors. Typically, when SCHIFF’s clients bought or sold artworks, payments were routed through SCHIFF’s business, SFA. In addition, when SCHIFF sold artworks on behalf of a client, she often had custody or control of the artworks to coordinate the sale. At times, SCHIFF, through SFA, also sold artwork on consignment on behalf of artists and other galleries.
Starting in about 2018, SCHIFF began defrauding her clients in two ways: not remitting payments to her clients when she sold their artwork while not disclosing to her clients that their artworks had, in fact, been sold; and not purchasing artworks on behalf of clients despite representing to her clients that she would purchase certain artworks on their behalf using their funds. Instead of using client funds as promised, SCHIFF diverted her clients’ money to pay her business and personal expenses. SCHIFF lied to her clients and galleries in furtherance of her fraud scheme. For example, when defrauding clients in connection with selling their artwork, SCHIFF at times lied to clients, claiming she had not sold the artwork, or the buyer was delayed in making the payment and SCHIFF still had custody of the artwork when, in fact, SCHIFF had sold the artwork, received payment from the buyer, and delivered the artwork to the buyer. When defrauding clients in connection with purchasing artwork on their behalf, SCHIFF lied to galleries from which she was supposed to purchase artwork on behalf clients, blaming delays in payment on clients when, in fact, clients had already paid SCHIFF for the purchase of the artwork and she had diverted the funds for her own use. In 2020, SCHIFF considered admitting to at least two of her victims that she had stolen millions from them, drafting letters of confession to them, but she never sent the letters and instead continued to defraud these two victims and others for three more years. Over approximately five years, SCHIFF defrauded at least 12 clients, one artist, the estate of another artist, and one gallery, collectively, of at least approximately $6.5 million. During her fraud, SCHIFF lived lavishly and incurred substantial debts, which she paid in part using her victims’ diverted funds.
In about May 2023, SCHIFF could no longer conceal her scheme due to mounting debts. SCHIFF confessed to several clients that she had stolen their money.
* * *
SCHIFF, 54, of New York, New York, was sentenced to two years of supervised release. SCHIFF was further ordered to pay forfeiture of $6,408,538.20 and restitution of $9,147,789.26.
Mr. Podolsky praised the outstanding work of the Federal Bureau of Investigation’s Art Crime Team.
This case is being handled by the Office’s Illicit Finance and Money Laundering Unit. Assistant U.S. Attorneys Cecilia Vogel and Jennifer Ong are in charge of the prosecution.
Non-Profit Executive Sentenced to 27 Months in Prison for Conspiring to Defraud Federal Government and to Obstruct Federal Administrative InvestigationRead the Press Release
Matthew Podolsky, the Acting United States Attorney for the Southern District of New York, announced that ARIE RANGOTT was sentenced today to 27 months in prison for conspiring to defraud the federal Head Start program, to submit a false document to the federal government, and to obstruct a federal administrative investigation. RANGOTT was convicted following a two-and-a-half-week trial before U.S. District Judge Jennifer H. Rearden, who also imposed today’s sentence.
Acting U.S. Attorney Matthew Podolsky said: “Arie Rangott defrauded a vital federal childcare program that aims to serve one of society’s most vulnerable populations. This Office is committed to bringing to justice those who place greed above their responsibility to be stewards of federal funds, and I commend our law enforcement partners and the dedicated team of career prosecutors for their outstanding work.”
According to the Indictment, public court filings, and the evidence presented at trial:
Between 2021 and January 2023, RANGOTT was the shadow executive director of a non-profit entity, Project Social Care Head Start Inc. (“PSCHS”), that operated in the New York City area. The U.S. Department of Health and Human Services (“HHS”), which administers the federal Head Start program, annually granted to PSCHS millions of dollars that were supposed to be overseen by an independent board of directors, to be used exclusively on the Head Start program, and from which earning a profit is prohibited by law. RANGOTT and others conspired to submit numerous fictitious documents to HHS that fraudulently asserted PSCHS had an independent board of directors and had in place controls to guard against fraud, waste, and abuse. In truth, PSCHS had neither an independent board nor sufficient controls in place. RANGOTT and his co-conspirators used their control over PSCHS to impermissibly direct PSCHS’s Head Start funding to for-profit companies owned by co-conspirators through rampant undisclosed self-dealing.
In December 2021, HHS sent a letter to PSCHS detailing several complaints about self-dealing at PSCHS, among other things. In response, RANGOTT and his co-conspirators prepared and submitted to HHS a report that falsely denied the self-dealing and made other misstatements. Then, in August and September 2022, the HHS Office of the Inspector General opened an investigation into related issues at PSCHS. RANGOTT and his co-conspirators agreed to obstruct that investigation by lying to the investigators, coordinating stories, and submitting false documents.
Several of RANGOTT’s co-conspirators have pled guilty and been sentenced. Among others, Martin Handler and Menachem Lieberman, each of whom secretly controlled PSCHS and directed PSCHS to steer federal funds to their own for-profit companies, pled guilty in March 2024, and Martin Handler was sentenced in October 2024 to 58 months in prison. Isidore Handler, who played a significant role in falsifying documents submitted to HHS, pled guilty in September 2023 and was sentenced in December 2024 to 18 months in prison. Lieberman is awaiting sentencing.
* * *
In addition to today’s prison sentence, RANGOTT, 54, of Toms River, New Jersey, was sentenced to two years of supervised release.
Mr. Podolsky praised the outstanding investigative work of the Federal Bureau of Investigation, Internal Revenue Service – Criminal Investigation, and the HHS Office of the Inspector General. Mr. Podolsky also thanked the U.S. Department of Agriculture Office of the Inspector General and the New York City Department of Investigation for their assistance.
The prosecution of this case is being handled by the Office’s Public Corruption Unit. Assistant U.S. Attorneys Jacob R. Fiddelman, Catherine Ghosh, Stephanie Simon, and Daniel H. Wolf are in charge of the prosecution, with the assistance of Paralegal Specialist Jayda Foote.
Los Angeles Director and Writer Charged with $11 Million Fraud in Connection with Streaming Science Fiction Television ShowRead the Press Release
Matthew Podolsky, the Acting United States Attorney for the Southern District of New York, and Leslie Backschies, the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced the unsealing of a seven-count Indictment charging CARL ERIK RINSCH for engaging in a scheme to defraud a subscription video on-demand streaming service (“Streaming Company-1”) in connection with a planned science fiction television show called “White Horse.” RINSCH was arrested today in West Hollywood, California, and will be presented later today in the Central District of California. The case is assigned to U.S. District Judge Jed S. Rakoff.
Acting U.S. Attorney Matthew Podolsky said: “As alleged, Carl Erik Rinsch orchestrated a scheme to steal millions by soliciting a large investment from a video streaming service, claiming that money would be used to finance a television show that he was creating. But that was fiction. Rinsch instead allegedly used the funds on personal expenses and investments, including highly speculative options and cryptocurrency trading. Rinsch’s arrest is a reminder that this Office and our partners at the FBI remain vigilant in the fight against fraud and will bring those who cheat and steal to justice.”
FBI Assistant Director Leslie Backschies said: “Carl Rinsch allegedly stole more than $11 million from a prominent streaming platform to finance lavish purchases and personal investments instead of completing a promised television series. The FBI will continue to reel in any individual who seeks to defraud businesses.”
As alleged in the Indictment:[1]
RINSCH is a film and television writer and director who partially completed a science fiction television show called “White Horse.” In 2018, RINSCH reached an agreement with Streaming Company-1 in which Streaming Company-1 would both pay RINSCH for the existing episodes of White Horse and also fund completion of the rest of the show. Between 2018 and 2019, Streaming Company-1 paid approximately $44 million for White Horse.
Between late 2019 and early 2020, RINSCH demanded even more money from Streaming Company-1 to complete White Horse. Streaming Company-1 ultimately agreed to pay another $11 million, and transferred those funds to a company RINSCH controlled on or about March 6, 2020. The entirety of those funds was to be spent on the completion of White Horse.
But RINSCH did not use those funds to complete White Horse. Instead, within days, RINSCH began transferring the funds he received through a number of different bank accounts before consolidating them in a personal brokerage account. RINSCH then used those funds to make a number of personal and speculative purchases of securities. His trading was unsuccessful, and in less than two months after receiving $11 million from Streaming Company-1, RINSCH had lost more than half of those funds.
Even after losing most of the $11 million, RINSCH still did not spend the remaining funds he had stolen on White Horse. Instead, he used the money to speculate on cryptocurrency, and on personal expenses and luxury items, including approximately $1,787,000 on credit card bills; approximately $1,073,000 on lawyers to sue Streaming Company-1 for even more money, and for lawyers related to his divorce; approximately $395,000 to stay at the Four Seasons hotel and at various luxury rental properties; approximately $3,787,000 on furniture and antiques, including approximately $638,000 to purchase two mattresses and approximately $295,000 on luxury bedding and linens; approximately $2,417,000 to purchase five Rolls-Royces and one Ferrari; and approximately $652,000 on watches and clothing.
* * *
RINSCH, 47, of Los Angeles, California, is charged with one count of wire fraud, which carries a maximum sentence of 20 years in prison; one count of money laundering, which carries a maximum sentence of 20 years in prison; and five counts of engaging in monetary transactions in property derived from specified unlawful activity, each of which carries a maximum sentence of 10 years in prison.
The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.
Mr. Podolsky praised the outstanding work of the FBI and Internal Revenue Service - Criminal Investigation.
The case is being prosecuted by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Jackie Delligatti, David A. Markewitz, and Kevin Mead are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
u.s._v._rinsch_indictment.pdf[1] As the introductory phrase signifies, the entirety of the text of the Indictment, and the description of the Indictment set forth herein, constitutes only allegations, and every fact described therein should be treated as an allegation.
Former Real Estate CEO Sentenced to Five Years in Prison for Manipulating WeWork Stock with Fraudulent Tender Offer SchemeRead the Press Release
Matthew Podolsky, the Acting United States Attorney for the Southern District of New York, announced that JONATHAN MOYNAHAN LARMORE was sentenced today to five years in prison for manipulating the stock price of WeWork, Inc. (“WeWork”) with a fake tender offer designed to fraudulently inflate the value of LARMORE’s own WeWork securities. LARMORE’s sentence was imposed by U.S. District Judge Paul A. Engelmayer, who also presided over a one-week trial after which LARMORE was convicted of one count of tender offer fraud and one count of securities fraud.
Acting U.S. Attorney Matthew Podolsky said: “Jonathan Larmore treated the stock market like a game he could rig to obtain instant riches at the expense of innocent investors. As today’s sentence shows, this Office will continue to advocate for significant penalties against those who manipulate our markets and defraud investors.”
According to the evidence presented in court during the trial:
LARMORE is the former CEO of Arciterra Companies LLC, a real estate investment and management firm. In the fall of 2023, LARMORE perpetrated a scheme to use a false and fraudulent tender offer to manipulate the stock price of WeWork, a co-working space company that was publicly traded on the New York Stock Exchange.
To execute his scheme, LARMORE created a sham real estate investment firm called Cole Capital Funds LLC (“Cole Capital”). LARMORE then spent more than $775,000 buying tens of thousands of cheap, short-dated, out-of-the-money WeWork call options and hundreds of thousands of shares of WeWork common stock. On November 3, 2023, LARMORE published a fake press release announcing that Cole Capital proposed to acquire 51% of all outstanding shares owned by minority shareholders of WeWork at a more-than-700% premium in an all-cash offer worth more than $77 million. At the time, WeWork was on the verge of bankruptcy. The press release itself contained a number of false and misleading claims about LARMORE and Cole Capital, and their ability to carry through with the purported tender offer.
In fact, neither LARMORE nor Cole Capital had the intent or ability to execute the announced tender offer. Instead, LARMORE intended for news of the tender offer to fraudulently inflate WeWork’s share price and, thereby, to increase the value of LARMORE’s newly acquired WeWork call options and shares.
Approximately one minute after LARMORE’s press release about his fraudulent tender offer was published, WeWork’s share price quickly increased during after-hours trading by more than 70% and continued to rise to a high of more than 150% over the stock price prior to the publication of the press release. The WeWork call options LARMORE purchased could have made him tens of millions of dollars with a big enough spike to WeWork’s stock price, but the vast majority of the options expired before LARMORE could publish his manipulative press release. The following Monday, November 6, 2023, WeWork filed for Chapter 11 bankruptcy protection. LARMORE never followed through on his fraudulent tender offer.
* * *
In addition to the prison term, LARMORE, 51, of Syracuse, Indiana, was sentenced to three years of supervised release during which the defendant must perform 500 hours of community service.
Mr. Podolsky praised the outstanding work of the Federal Bureau of Investigation. Mr. Podolsky also thanked the U.S. Securities and Exchange Commission, which filed a civil action against LARMORE, for its assistance and cooperation in the investigation.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Adam S. Hobson, Sarah Mortazavi, and Justin V. Rodriguez are in charge of the prosecution.
Georgian Organized Crime Boss and Associates Convicted and Sentenced for Extortion OffensesRead the Press Release
Matthew Podolsky, the Acting United States Attorney for the Southern District of New York, announced the sentences imposed on VAZHA GABADADZE, TEIMURAZ TAVBERIDZE, KAKHA KATSADZE, and DAVIT TIKARADZE for extortion offenses. The defendants include the leader of a criminal enterprise from the Republic of Georgia and his associates. The last of the defendants to be sentenced, TAVBERIDZE, was sentenced to 21 months in prison today by U.S. District Judge Jed S. Rakoff after having been convicted on December 9, 2024, following a one-week jury trial. The remaining three defendants were previously sentenced to terms of prison ranging from 12 to 30 months.
Acting U.S. Attorney Matthew Podolsky said: “Vazha Gabadadze and his associates threatened to mutilate and kill a victim if he did not provide them with money. They intimidated the victim, relying on their connections to violent organized crime, to obtain thousands of dollars. But thanks to the dedication of the FBI and the career prosecutors of this Office, all four defendants have been brought to justice and will serve federal prison time for their crimes.”
According to the Indictment, public court filings, and statements made in court:
GABADADZE is a crowned “vor v zakone” and the leader of a criminal enterprise from the Republic of Georgia. A vor v zakone, which is a Russian phrase that translates to “thief-in-law” or “thief within the code,” is part of a fraternal order of criminals that dates back to the time of the czars. The vor stands at the highest level of Russian and Georgian organized criminal groups. Traditionally, vory demand and receive tribute from criminals and laypersons, license criminal activity by others, and resolve disputes between members of the criminal community. Payment demands are enforced by violence and threats of violence. TAVBERIDZE, KATSADZE, and TIKARADZE each worked under GABADADZE’s supervision and control.
In 2017, in Georgia, GABADADZE approached an individual (the “Victim”) and demanded $15,000, claiming that the Victim’s friend owed GABADADZE the money. The Victim subsequently moved to the U.S.
In 2022, GABADADZE followed the Victim to the U.S. and reinitiated the extortion. GABADADZE and the other defendants pursued, harassed, and threatened to kill and maim the Victim and his family if he did not pay. Those threats were particularly violent and included, among others, that one or more of the defendants would “break [the Victim’s] spine over his knee,” “peel out [the Victim’s] eyes,” that the Victim would be beaten beyond recognition to his family, and that the Victim’s dead body would be found “when the snow melts.”
Each of the defendants played a particular role in executing the extortion. GABADADZE was the leader of the scheme and ultimate beneficiary of the extortion payments. TAVBERIDZE was primarily responsible for pursuing and communicating with the Victim and, in that capacity, personally threatened the Victim and collected extortion funds from the Victim. KATSADZE managed the collection of the extortion payments, receiving such payments from TAVBERIDZE and passing them along to GABADADZE. TIKARADZE served as GABADADZE’s secretary and threatened the Victim on at least one occasion. In total, the defendants received approximately $19,000 during the course of the extortion.
* * *
GABADADZE and KATSADZE each pled guilty to one count of Hobbs Act extortion. TIKARADZE pled guilty to one count of conspiracy to commit Hobbs Act extortion. TAVBERIDZE was convicted of one count of conspiracy to commit Hobbs Act extortion and one count of Hobbs Act extortion after trial. A chart containing the sentences that each of the defendants received is set forth below.
DefendantAgeSentence of ImprisonmentVazha Gabadadze4230 MonthsTeimuraz Tavberidze5521 MonthsKakha Katsadze4621 MonthsDavit Tikaradze5412 MonthsMr. Podolsky praised the outstanding work of the Federal Bureau of Investigation. Mr. Podolsky also thanked U.S. Customs and Border Protection and the New York City Police Department for their assistance in the investigation.
This case is being handled by the Office’s General Crimes Unit. Assistant U.S. Attorneys Getzel Berger, Varun Gumaste, Chelsea Scism, and Daniel Richenthal are in charge of the prosecution.
Dominican National Extradited for Murder, Narcotics, and Firearms ChargesRead the Press Release
Matthew Podolsky, the Acting United States Attorney for the Southern District of New York, and Leslie R. Backschies, the Acting Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today that MARCO TULIO FERNANDEZ-RODRIGUEZ, was extradited from the Dominican Republic and arrived in the United States this afternoon. FERNANDEZ-RODRIGUEZ was extradited on murder, narcotics, and firearms charges in connection with an attempted gunpoint robbery of a Mount Vernon, New York, warehouse that sold various unlicensed marijuana and nicotine products. Two people—one employee of the warehouse and one member of the roughly 15-man robbery crew—were shot and killed during the failed robbery attempt. FERNANDEZ-RODRIGUEZ will be presented tomorrow in White Plains federal court before U.S. Magistrate Judge Andrew E. Krause.
Acting U.S. Attorney Matthew Podolsky said: “As alleged, Marco Tulio Fernandez-Rodriguez and his co-conspirators attempted a violent armed robbery that left two dead in Mount Vernon. The persistence and dedication of our law enforcement partners led to locating the defendant in the Dominican Republic, where he was arrested. This Office and our partners will not rest until every individual responsible for these senseless deaths is brought to justice.”
FBI Acting Assistant Director in Charge Leslie R. Backschies said: “Last year, Marco Tulio Fernandez-Rodriguez allegedly fled the country after participating in a robbery and massive gunfight which culminated in the murder of two individuals. Not only did his alleged involvement contribute to a highly violent episode which threatened the community’s safety, but Fernandez-Rodriguez also attempted to avoid responsibility by running. Today’s extradition and indictment reflects the FBI’s tireless commitment to ensuring all criminals face accountability for their behavior, regardless of where they may hide.”
As alleged in the Complaint unsealed today in White Plains federal court:[1]
On or about March 18, 2024, at approximately 10:00 p.m., two customers arrived at a wholesale warehouse in Mount Vernon that sold unlicensed marijuana products. The two customers placed an order for a large quantity of merchandise from the warehouse, and it took warehouse employees about two hours to prepare their order. A little after midnight, after the customers’ order was prepared, two employees from the warehouse helped the customers carry the boxes containing the customers’ merchandise from the warehouse to the customers’ vehicle. At that point, at least 11 members of the robbery crew—including FERNANDEZ-RODRIGUEZ—got out of a large cargo van that had been parked near the warehouse, many brandishing firearms. Some of the robbers, including FERNANDEZ-RODRIGUEZ, ran over to the two employees and the customers, some pointed firearms at them, and others forced them back inside the warehouse. Other robbers who also got out of the van ran inside the warehouse to steal the merchandise, including marijuana. A still image from video surveillance outside the warehouse is depicted below:
Shortly after the robbers got inside the warehouse, a gunfight broke out between the robbers and a warehouse employee. As a result, the warehouse employee and one of the robbers were killed. The robbers fled the scene, failing to steal anything.
On or about December 4, 2024, FERNANDEZ-RODRIGUEZ was arrested in the Dominican Republic. To date, 12 individuals have been arrested in connection with this crime.
* * *
FERNANDEZ-RODRIGUEZ, 24, a citizen of the Dominican Republic, is charged with one count of murder through use of a firearm, which carries a maximum possible sentence of death or life in prison; one count of firearms use, carrying, and possession, which carries a maximum possible sentence of life in prison; one count of conspiracy to distribute narcotics, which carries a maximum sentence of life in prison; and one count of conspiracy to commit Hobbs Act robbery, which carries a maximum sentence of 20 years in prison.
The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as the sentencing of the defendants will be determined by a judge.
Mr. Podolsky praised the work of the FBI’s Westchester County Safe Streets Task Force and the Mount Vernon Police Department. Mr. Podolsky also thanked the Westchester County District Attorney’s Office, the Westchester County Police Department, the New York City Police Department, the Westchester Real Time Crime Center, the FBI Legal Attaché in Santo Domingo, and the Dominican authorities for their invaluable assistance. The Justice Department’s Office of International Affairs worked with law enforcement partners in the Dominican Republic to secure the arrest and extradition of FERNANDEZ-RODRIGUEZ.
This case is being handled by the Office’s White Plains Division. Assistant U.S. Attorneys Jared D. Hoffman and Justin L. Brooke are in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
u.s._v._fernandez-rodriguez_complaint.pdf[1] As the introductory phrase signifies, the descriptions of the Complaint set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Twenty-Eight Leaders and Members of the Valentine Avenue Crew Charged in Manhattan Federal Court with RacketeeringRead the Press Release
Matthew Podolsky, the Acting United States Attorney for the Southern District of New York; Frank A. Tarentino, the Special Agent in Charge of the New York Division of the U.S. Drug Enforcement Administration (“DEA”); Leslie R. Backschies, the Acting Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”); and Jessica S. Tisch, the Commissioner of the New York City Police Department (“NYPD”), announced the unsealing today of an Indictment charging EDWIN CARRASQUILLO, a/k/a “Malo”; HECTOR HERNANDEZ, a/k/a “Hec”; JOSE HERNANDEZ, a/k/a “Nene,” a/k/a “Little”; NATHANIEL MANNING, a/k/a “Tio”; DAMEL MARCUS, a/k/a “Shank”; EDWARDO MORENO, a/k/a “AR”; JERMAINE SAMUELS, a/k/a “Maine”; CHRISTIAN SERRANO, a/k/a “Chris”; JOHNNIE CAPELES a/k/a “Jon Boy”; JAMIL BANKS a/k/a “Mel”; EMILIO BARRERA, a/k/a “Colombia,” a/k/a “E”; JASON RIVERA, a/k/a “Colombo”; HECTOR CEREZO, a/k/a “Red”; JOSUE VARGAS, a/k/a “Leo”; JUAN KUANG, a/k/a “Jo Jo,” a/k/a “Jay,” a/k/a “Blanco”; STEVEN SANTIAGO, a/k/a “Swizz”; VICTOR MENDENG, a/k/a “Cali”; ANGEL VILLAFANE, YADIRA REYNOSO, a/k/a “Yadi”; ERIKA DAWSON; ARIYAN LABELLA, a/k/a “Ari”; DELILAH CARRIEL; ROSEMARIE SANCHEZ, a/k/a “Rosie”; JOHANA ALCANTARA; JUAN CALDERON, a/k/a “Jazzo,” a/k/a “Juanito”; KAREEM SMITH, a/k/a “K”; and CHRISTOPHER MEADOWS with participating in a racketeering enterprise, committing multiple violent crimes in aid of racketeering, including murder, engaging in a continuing criminal enterprise, distributing narcotics, and carrying and using firearms in connection with an armed drug trafficking operation based on Valentine Avenue in the Bronx, New York for well over three decades from 1993 to the present. CARASQUILLO and ALCANTARA are also charged with the June 25, 2020, murder of Jozei Hullex.
CARRASQUILLO, HECTOR HERNANDEZ, JOSE HERNANDEZ, MANNING, MARCUS, MORENO, BANKS, RIVERA, CEREZO, VARGAS, KUANG, SANTIAGO, MENDENG, VILLAFANE, CARRIEL, SANCHEZ, ALCANTARA, CALDERON, and MEADOWS were previously taken into custody on related charges. SAMUELS, SERRANO, CAPELES, REYNOSO, DAWSON, LABELLA, and SMITH were arrested either yesterday evening or earlier today. BARRERA is still at large. All seven of the defendants arrested yesterday or today are expected to be presented before U.S. Magistrate Judge Robert W. Lehrburger later this afternoon. The case is assigned to U.S. District Judge Victor Marrero.
Acting U.S. Attorney Matthew Podolsky said: “Today, we have filed charges against twenty-eight alleged members of a violent drug trafficking gang that held an entire neighborhood of this city hostage for over three decades. On a daily basis, this street crew, including those arrested today, allegedly distributed fentanyl, heroin, cocaine, and crack along several blocks on Valentine Avenue, creating an open-air drug market in the middle of a Bronx neighborhood. And to protect their territory, they allegedly carried guns, extorted people with substance abuse issues through violence, and attacked rivals and anyone else attempting to weaken their control on their block. This violence resulted in multiple shootings, as well as the murder of Jozei Hullex. It is a brutal reality that has lasted for far too long. It ends now. The streets of this great city belong to its people, and the career prosecutors of this Office will not stop until our streets are returned to the law-abiding people of New York City and their families.”
DEA Special Agent in Charge Frank A. Tarentino said: “Today’s indictment against the Valentine Avenue Crew and its members, shows the commitment the Drug Enforcement Administration and our law enforcement partners have when targeting drug trafficking organizations and individuals who routinely use threats, violence, extortion, robbery, and murder in order to run their criminal enterprise and flood our neighborhoods with illicit and synthetic drugs. The DEA remains committed to ensuring our citizens and communities remain healthy and safe.”
FBI Acting Assistant Director in Charge Leslie R. Backschies said: “For over three decades, these 28 Valentine Avenue Crew members allegedly protected their illicit narcotics distribution scheme and the enterprise’s dangerous reputation through violent gunfights and murder. Their alleged commandeering of a Bronx neighborhood allowed criminality and violence to flourish, threatening the lives of innocent residents. The FBI remains committed to dismantling all criminal organizations that utilize our city as their personal playground to promote illegal racketeering operations and endanger our communities.”
NYPD Commissioner Jessica S. Tisch said: “The Valentine Avenue Crew created immense fear within their community for decades, fueling our streets with senseless gun violence, polluting our sidewalks with deadly poisons, and costing lives through their ruthless gang behavior. These indictments send a clear message: this era of lawlessness ends today. The NYPD remains steadfast in its mission to remove illegal firearms from the hands of criminals—having already seized over 1,000 firearms this year alone—and to dismantle the illicit drug trade they are so often associated with. I commend the relentless NYPD investigators and our law enforcement partners in the FBI, DEA, and the U.S. Attorney’s Office for the Southern District of New York for their unwavering commitment to placing members of organized networks such as these behind bars.”
As alleged in the Indictment:[1]
CARRASQUILLO, HECTOR HERNANDEZ, JOSE HERNANDEZ, MANNING, MARCUS, MORENO, SAMUELS, SERRANO, CAPELES, BANKS, BARRERA, RIVERA, CEREZO, VARGAS, KUANG, SANTIAGO, MENDENG, VILLAFANE, REYNOSO, DAWSON, LABELLA, CARRIEL, SANCHEZ, ALCANTARA, CALDERON, SMITH, and MEADOWS are charged for their involvement in an armed drug trafficking organization (the “Valentine Avenue Crew”) that took over the block of Valentine Avenue between East 194th Street and East 196th Street in the Bronx (the “Block”) and its surrounding neighborhood.
Since the mid-1990s, for multiple decades, the members and associates of the Valentine Avenue Crew, including the defendants, operated as a drug trafficking gang that was organized in a hierarchal structure and that took over and controlled the Block, working in shifts throughout the day and night to distribute fentanyl, heroin, cocaine, and cocaine base, in a form commonly known as “crack.” These drugs were often manufactured and packaged elsewhere and then delivered to the Block, where members and associates of the Valentine Avenue Crew, many of whom were typically armed with firearms and other weapons, sold them to a large base of end-user customers. In control of the sidewalks and the street of the Block, as well as the public spaces of multiple buildings along the Block, the Valentine Avenue Crew and its members and associates, including the defendants, worked freely, creating an open market for drugs, in which they extorted payments, including in-kind sexual acts, from customers through violence and the threat of violence. The members and associates of the Valentine Avenue Crew, including the defendants, also used violence—including multiple shootings—to compete with rival drug traffickers and within the Valentine Avenue Crew itself, principally to maintain dominance over the drug trade on the Block and control of the Valentine Avenue Crew.
On or about June 25, 2020, CARRASQUILLO, one of the leaders of the Valentine Avenue Crew, and ALCANTARA used fentanyl to poison and murder Jozei Hullex, a disfavored member of the Valentine Avenue Crew.
On or about June 25, 2020, CARRASQUILLO, HECTOR HERNANDEZ, JOSE HERNANDEZ, MANNING, MARCUS, and SAMUELS participated in a shootout for control of the Valentine Avenue Crew and in turn the Block.
On or about September 22, 2020, CARRASQUILLO and CEREZO participated in shooting at a rival gang member.
On or about January 1, 2021, CARRASQUILLO, MARCUS, MORENO, and SAMUELS used a chain and one or more firearms to assault a disfavored member of the Valentine Avenue Crew, who was seriously injured and hospitalized following the attack.
In addition, VILLAFANE remains charged for his commission of two non-fatal shootings in Manhattan in July 2020 and January 2021. Specifically, in or about July 2020, VILLAFANE paid a co-conspirator (“CC-1”) to lure a victim to a location in Manhattan where VILLAFANE attempted to murder the victim over a drug debt, resulting in personal injury to the victim. Additionally, on or about January 8, 2021, VILLAFANE committed another non-fatal shooting in Manhattan.
* * *
A chart containing the names, charges, and maximum penalties for the defendants is set forth below.
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Podolsky praised the outstanding investigative work of the DEA, FBI, and NYPD. Today’s operation was conducted by the Trident Task Force, a joint task force of the DEA and FBI, among other federal, state, and local law-enforcement authorities, which is working on this case together with the NYPD.
This case is being handled by the Office’s Violent and Organized Crime Unit. Assistant U.S. Attorneys Michael R. Herman, Timothy Ly, and Thomas John Wright are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
u.s._v._carrasquillo_et_al._indictment.pdfCOUNT
CHARGE
DEFENDANTS
MAX. PENALTIES
1
Racketeering
conspiracy
18 U.S.C. § 1962(d)
All DEFENDANTSLife in prison2
Conspiracy to commit murder in aid of racketeering
18 U.S.C. § 1959(a)(5)
EDWIN CARRASQUILLO,
a/k/a “Malo,” and
JOHANA ALCANTARA
10 years in prison3
Murder in aid of racketeering
18 U.S.C. §§ 1959(a)(1) and 2
EDWIN CARRASQUILLO,
a/k/a “Malo,” and
JOHANA ALCANTARA
Death or mandatory sentence of life in prison4
Attempted murder and assault with a dangerous weapon in aid of racketeering
18 U.S.C. §§ 1959(a)(3), (a)(5), and 2
EDWIN CARRASQUILLO,
a/k/a “Malo,”
HECTOR HERNANDEZ,
a/k/a “Hec,”
JOSE HERNANDEZ,
a/k/a “Nene,”
a/k/a “Little,”
NATHANIEL MANNING,
a/k/a “Tio,”
DAMEL MARCUS,
a/k/a “Shank,” and
JERMAINE SAMUELS,
a/k/a “Maine”
20 years in prison5
Using or carrying a firearm during and in relation to, or possessing a firearm in furtherance of, a drug trafficking crime
18 U.S.C. §§ 924(c) and 2
EDWIN CARRASQUILLO,
a/k/a “Malo,”
HECTOR HERNANDEZ,
a/k/a “Hec,”
JOSE HERNANDEZ,
a/k/a “Nene,”
a/k/a “Little,”
NATHANIEL MANNING,
a/k/a “Tio,”
DAMEL MARCUS,
a/k/a “Shank,” and
JERMAINE SAMUELS,
a/k/a “Maine”
Life in prison
Mandatory minimum sentence of 10 years in prison
6
Attempted murder and assault with a dangerous weapon in aid of racketeering
18 U.S.C. §§ 1959(a)(3), (a)(5), and 2
EDWIN CARRASQUILLO,
a/k/a “Malo,” and
HECTOR CEREZO,
a/k/a “Red”
20 years in prison7
Using or carrying a firearm during and in relation to, or possessing a firearm in furtherance of, a drug trafficking crime
18 U.S.C. §§ 924(c) and 2
EDWIN CARRASQUILLO,
a/k/a “Malo”
Life in prison
Mandatory minimum sentence of 10 years in prison
8
Assault with a dangerous weapon and assault resulting in serious bodily injury in aid of racketeeringEDWIN CARRASQUILLO,
a/k/a “Malo,”
DAMEL MARCUS,
a/k/a “Shank,”
EDWARDO MORENO,
a/k/a “AR,”
and JERMAINE SAMUELS,
a/k/a “Maine”
20 years in prison9
Using or carrying a firearm during and in relation to, or possessing a firearm in furtherance of, a drug trafficking crime
18 U.S.C. §§ 924(c) and 2
EDWIN CARRASQUILLO,
a/k/a “Malo,”
DAMEL MARCUS,
a/k/a “Shank,”
EDWARDO MORENO,
a/k/a “AR,”
and JERMAINE SAMUELS,
a/k/a “Maine”
Life in prison
Mandatory minimum sentence of 7 years in prison
10
Narcotics conspiracy
21 U.S.C. § 846
EDWIN CARRASQUILLO,
a/k/a “Malo,”
HECTOR HERNANDEZ,
a/k/a “Hec,”
JOSE HERNANDEZ,
a/k/a “Nene,”
a/k/a “Little,”
NATHANIEL MANNING,
a/k/a “Tio,”
DAMEL MARCUS,
a/k/a “Shank,”
EDWARDO MORENO,
a/k/a “AR,”
JERMAINE SAMUELS,
a/k/a “Maine,”
CHRISTIAN SERRANO,
a/k/a “Chris,”
JOHNNIE CAPELES
a/k/a “Jon Boy,”
EMILIO BARRERA,
a/k/a “Colombia,”
a/k/a “E,”
JASON RIVERA,
a/k/a “Colombo,”
HECTOR CEREZO
a/k/a “Red,”
JOSUE VARGAS,
a/k/a “Leo,”
JUAN KUANG,
a/k/a “Jo Jo,”
a/k/a “Jay,”
a/k/a “Blanco,”
STEVEN SANTIAGO,
a/k/a “Swizz,”
VICTOR MENDENG,
a/k/a “Cali,”
ANGEL VILLAFANE
YADIRA REYNOSO,
a/k/a “Yadi,”
ERIKA DAWSON,
ARIYAN LABELLA,
a/k/a “Ari,”
DELILAH CARRIEL,
ROSEMARIE SANCHEZ,
a/k/a “Rosie,”
JOHANA ALCANTARA,
JUAN CALDERON,
a/k/a “Jazzo,”
a/k/a “Juanito,”
KAREEM SMITH,
a/k/a “K,” and
CHRISTOPHER MEADOWS
Life in prison
Mandatory minimum sentence of 10 years in prison
11
Continuing criminal enterpriseEDWIN CARRASQUILLO,
a/k/a “Malo,”
HECTOR HERNANDEZ,
a/k/a “Hec,”
JOSE HERNANDEZ,
a/k/a “Nene,”
a/k/a “Little,”
NATHANIEL MANNING,
a/k/a “Tio,”
DAMEL MARCUS,
a/k/a “Shank,”
EDWARDO MORENO,
a/k/a “AR,”
JERMAINE SAMUELS,
a/k/a “Maine,”
CHRISTIAN SERRANO,
a/k/a “Chris,”
JOHNNIE CAPELES,
a/k/a “Jon Boy,”
JAMIL BANKS,
a/k/a “Mel,”
EMILIO BARRERA,
a/k/a “Colombia,”
a/k/a “E,”
JASON RIVERA,
a/k/a “Colombo,”
JOSUE VARGAS,
a/k/a “Leo,”
JUN KUANG,
a/k/a “Jo Jo,”
a/k/a “Jay,”
a/k/a “Blanco,”
and STEVEN SANTIAGO,
a/k/a “Swizz”
Life in prison
Mandatory sentence of life in prison for CARRASQUILLO and HERNANDEZ
Mandatory minimum sentence of 20 years in prison for other defendants
12
Murder while engaged in a narcotics conspiracy
21 U.S.C. § 848(e)(1)(A)
EDWIN CARRASQUILLO,
a/k/a “Malo,” and
JOHANA ALCANTARA
Death or life in prison
Mandatory minimum sentence of 20 years in prison
13
Using or carrying a firearm during and in relation to, or possessing a firearm in furtherance of, a drug trafficking crimeEDWIN CARRASQUILLO,
a/k/a “Malo”
Life in prison
Mandatory minimum consecutive sentence 10 years in prison
14
Using or carrying a firearm during and in relation to, or possessing a firearm in furtherance of, a drug trafficking crimeHECTOR HERNANDEZ,
a/k/a “Hec”
Life in prison
Mandatory minimum consecutive sentence 10 years in prison
15
Using or carrying a firearm during and in relation to, or possessing a firearm in furtherance of, a drug trafficking crimeJOSE HERNANDEZ,
a/k/a “Nene,”
a/k/a “Little”
Life in prison
Mandatory minimum consecutive sentence 10 years in prison
16
Using or carrying a firearm during and in relation to, or possessing a firearm in furtherance of, a drug trafficking crimeNATHANIEL MANNING,
a/k/a “Tio”
Life in prison
Mandatory minimum consecutive sentence 10 years in prison
17
Using or carrying a firearm during and in relation to, or possessing a firearm in furtherance of, a drug trafficking crimeDAMEL MARCUS,
a/k/a “Shank”
Life in prison
Mandatory minimum consecutive sentence 10 years in prison
18
Using or carrying a firearm during and in relation to, or possessing a firearm in furtherance of, a drug trafficking crimeEDWARDO MORENO,
a/k/a “AR”
Life in prison
Mandatory minimum consecutive sentence 10 years in prison
19
Using or carrying a firearm during and in relation to, or possessing a firearm in furtherance of, a drug trafficking crimeJERMAINE SAMUELS,
a/k/a “Maine”
Life in prison
Mandatory minimum consecutive sentence 10 years in prison
20
Using or carrying a firearm during and in relation to, or possessing a firearm in furtherance of, a drug trafficking crimeHECTOR CEREZO,
a/k/a “Red”
Life in prison
Mandatory minimum consecutive sentence 10 years in prison
21
Using or carrying a firearm during and in relation to, or possessing a firearm in furtherance of, a drug trafficking crimeANGEL VILLAFANELife in prison
Mandatory minimum consecutive sentence 10 years in prison
22
Using or carrying a firearm during and in relation to, or possessing a firearm in furtherance of, a drug trafficking crimeCHRISTIAN SERRANO,
a/k/a “Chris,”
JOHNNIE CAPELES,
a/k/a “Jon Boy,”
JAMIL BANKS,
a/k/a “Mel,”
EMILIO BARRERA,
a/k/a “Colombia,”
a/k/a “E,”
JASON RIVERA,
a/k/a “Colombo,”
JOSUE VARGAS,
a/k/a “Leo,”
JUAN KUANG,
a/k/a “Jo Jo,”
a/k/a “Jay,”
a/k/a “Blanco,”
STEVEN SANTIAGO,
a/k/a “Swizz,”
VICTOR MENDENG,
a/k/a “Cali,”
YADIRA REYNOSO,
a/k/a “Yadi,”
ERIKA DAWSON,
ARIYAN LABELLA,
a/k/a “Ari,”
DELILAH CARRIEL,
ROSEMARIE SANCHEZ,
a/k/a “Rosie,”
JOHANA ALCANTARA,
JUAN CALDERON,
a/k/a “Jazzo,”
a/k/a “Juanito,”
KAREEM SMITH,
a/k/a “K,” and
CHRISTOPHER MEADOWS
Life in prison
Mandatory minimum consecutive sentence 10 years in prison
23
Murder for hireANGEL VILLAFANE20 years in prison24
Using or carrying a firearm during and in relation to, or possessing a firearm in furtherance of, a drug trafficking crimeANGEL VILLAFANELife in prison
Mandatory minimum consecutive sentence 10 years in prison
25
Felon in possession of ammunitionANGEL VILLAFANE10 years in prison[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Six Defendants Sentenced to Prison for Corruption at Rikers IslandRead the Press Release
Matthew Podolsky, the Acting United States Attorney for the Southern District of New York, announced the sentences imposed on former Rikers Island corrections officers JASON SKEET, CHANTAL DE LOS SANTOS, and STEPHANIE DAVILA; former Rikers Island program counselor SHANEQUA WASHINGTON; former Rikers Island contractor KENNETH WEBSTER; and former Rikers Island inmate KRISTOPHER FRANCISCO, each for conspiring to commit honest services wire fraud in connection with their involvement in corruption at Rikers Island. The last of the defendants to be sentenced, DAVILA, was sentenced to 12 months and a day in prison today by U.S. District Judge Lorna G. Schofield. The remaining five defendants were previously sentenced to terms of prison ranging from 12 months to 40 months.
Acting U.S. Attorney Matthew Podolsky said: “The defendants—former Rikers Island employees, a Rikers Island contractor, and an inmate—engaged in corruption on Rikers Island by agreeing to have contraband smuggled into the Rikers Island jail facilities in exchange for tens of thousands of dollars in bribes. The defendants’ crimes contributed to a dangerous contraband market within Rikers Island, making Rikers Island less safe for inmates and officers alike. The sentences imposed in this case demonstrate this Office’s commitment to hold accountable those who criminally abuse their positions of public trust and undermine the security of jails for their own benefit.”
According to the Complaints, Informations, public court filings, and statements made in court:
SKEET, DE LOS SANTOS, DAVILA, WASHINGTON, WEBSTER, and FRANCISCO engaged in conspiracies to smuggle contraband, including, among other things, controlled substances—such as fentanyl, marijuana, and synthetic cannabinoids, commonly known as “K2”—cellphones, and cigarettes, into Rikers Island in exchange for thousands of dollars in bribe payments. Each of the charged conspiracies involved a Rikers Island insider—either a corrections officer, program counselor, or contractor—who was responsible for smuggling contraband into the facility; a co-conspirator outside of Rikers Island who provided the contraband and/or bribe payments to the insider; and an inmate co-conspirator who received the contraband smuggled by the insider. The inmate who received the contraband from the insider typically sold at least part of the contraband to other inmates inside Rikers Island, in exchange for thousands of dollars in payments to the inmate or the inmate’s co-conspirators. In particular:
From at least January 2020 through June 2022, SKEET, who was then a corrections officer assigned to the Northern Infirmary Command on Rikers Island, smuggled contraband into Rikers Island approximately 100 times in exchange for more than $45,000.
From at least March 2022 through April 2022, WASHINGTON, who was then a program counselor assigned to the Robert N. Davoren Center on Rikers Island, smuggled contraband into Rikers Island in exchange for approximately $13,000.
From at least May 2022 through September 2022, WEBSTER, who was then an employee of a Rikers Island contractor and a former Rikers Island inmate , smuggled contraband into Rikers Island in exchange for more than $64,000.
From at least March 2022 through June 2022, DE LOS SANTOS, who was then a former Rikers Island corrections officer, passed contraband and made bribe payments to WASHINGTON and WEBSTER, so that they would smuggle the contraband to inmates inside Rikers Island.
From at least July 2021 through August 2021, DAVILA, who was then a former Rikers Island corrections officer, passed contraband and made bribe payments to a Rikers Island corrections officer (“CC-1”), so that CC-1 would smuggle the contraband to FRANCISCO inside Rikers Island.
From at least July 2021 through August 2021, FRANCISCO, who was then an inmate incarcerated in the Anna M. Kross Center on Rikers Island, directed DAVILA to provide bribe payments and contraband to CC-1, so that CC-1 would smuggle contraband to FRANCISCO inside Rikers Island.
* * *
Each of the defendants pled guilty to one count of conspiracy to commit honest services wire fraud. A chart containing the sentences that the defendants received is set forth below.
Mr. Podolsky praised the outstanding work of the Federal Bureau of Investigation and the New York City Department of Investigation.
The case is being handled by the Office’s Public Corruption Unit. Assistant U.S. Attorneys Adam Z. Margulies and Jonathan Rebold are in charge of the prosecution.
DefendantAge
Sentence of ImprisonmentStephanie Davila31
12 months and a dayChantal De Los Santos31
15 monthsKristopher Francisco29
37 monthsJason Skeet47
37 monthsShanequa Washington40
12 months and a dayKenneth Webster43
41 monthsIrish and U.K. Nationals Charged with Multi-State Construction Fraud That Targeted Vulnerable HomeownersRead the Press Release
Matthew Podolsky, the Acting United States Attorney for the Southern District of New York, and Leslie R. Backschies, the Acting Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today the unsealing of a Complaint in Manhattan federal court charging JAMES DINNIGAN, a/k/a “Charlie Ward,” and MARTIN MAUGHAN, a/k/a “Lawrence Rogers,” with conspiracy to commit wire fraud for their participation in a multi-year, multi-state organized construction fraud scheme that targeted at least 24 victims, including numerous elderly and vulnerable victims. MAUGHAN was transferred from state custody to federal custody this afternoon and will be presented today before U.S. Magistrate Robyn Tarnofsky. DINNIGAN is in federal immigration custody and will be transferred to the Southern District of New York.
Acting U.S. Attorney Matthew Podolsky said: “As alleged, these defendants and their co-conspirators carried out a brazen scheme to defraud vulnerable members of our community by posing as legitimate home repair contractors and tricking homeowners into paying for thousands of dollars in unnecessary and unwanted home repairs. Today’s charges should serve as a reminder that this Office and its law enforcement partners are committed to investigating and bringing to justice those who seek to enrich themselves by victimizing vulnerable members of our community.”
Acting Assistant Director in Charge Leslie R. Backschies said: “James Dinnigan and Martin Maughan allegedly enticed prospective consumers with illegitimate home improvement advertisements before intentionally destroying their property to extort unanticipated additional costs. These illegal foreign nationals allegedly laid the foundation to prey upon a vulnerable population across the northeast, ultimately stealing a significant sum from elderly victims. The FBI remains committed to protecting our citizens from any fraudulent company attempting to cement false promises to garner illicit profits.”
As alleged in the Complaint unsealed today in Manhattan federal court:[1]
Between at least in or around October 2023 through at least in or about February 2025, DINNIGAN and MAUGHAN participated in a construction fraud scheme involving dozens of victims in New York, New Jersey, Connecticut, Pennsylvania, and several other states. Participants in the scheme were usually foreign nationals from Ireland and the United Kingdom who were illegally in the U.S. and falsely posed as legitimate home repair contractors.
The scheme generally proceeded as follows: To get hired by the victims, members of the scheme made false statements to victims about their operation of legitimate home repair businesses, their occupation as contractors or engineers, and about home improvement and construction projects the victims needed to obtain. After being hired, members of the scheme tricked victims into paying for additional unwanted or unnecessary home repairs and other construction, including by purposefully damaging or destroying the victims’ property. The perpetrators of the scheme then forced victims, including through threats, into paying them tens or even hundreds of thousands of dollars.
DINNIGAN, MAUGHAN, and other perpetrators of the scheme communicated with victims using cellphones and email. The victims frequently wrote checks and transferred money to bank accounts controlled by members of the scheme, including into an account at a particular financial institution in Manhattan, New York. The perpetrators of the scheme also operated websites in the names of at least two purported construction companies: Local Masonry and Construction and Pine Valley Home Improvements, Inc. Below are screenshots from websites that the perpetrators used to lure victims into the scheme:
The FBI has identified more than two dozen victims—many who are elderly individuals—who have lost at least $1 million as a result of this scheme.
DINNIGAN entered the U.S. on or about April 4, 2023, using a tourist visa. A review of relevant records has revealed no known documentation showing that DINNIGAN departed the U.S. as required, or that DINNIGAN applied for and received authorization to legally remain in the U.S. On or about February 25, 2025, DINNIGAN was encountered by U.S. Customs and Border Protection (“CBP”) in Champlain, New York.
On or about August 9, 2023, MAUGHAN was encountered by CBP officers in the vicinity of Laredo, Texas. MAUGHAN was subsequently ordered removed from the U.S. to the United Kingdom on or about October 30, 2023. According to MAUGHAN’s order of removal, he was prohibited from reentering or attempting to reenter the U.S. for a period of five years. On or about February 7, 2025, MAUGHAN was found inside the U.S. when he was arrested at the Boston Logan International Airport moments before departing on a flight to Dublin, Ireland.
If you believe that you have additional information about this scheme or if you believe you have been a victim of the defendants or their co-conspirators, please contact the FBI at tips.fbi.gov, and reference this case.
* * *
DINNIGAN, 27, of Ireland, and MAUGHAN, 31, of the United Kingdom, are each charged with one count of conspiracy to commit wire fraud, which carries a maximum term of 20 years in prison.
The maximum potential sentences in this case are prescribed by Congress and provided here for informational purposes only, as any sentencing of the defendants will be determined by a judge.
Mr. Podolsky praised the outstanding investigative work of the FBI’s New York and Philadelphia field offices. Mr. Podolsky also thanked CBP; U.S. Immigration and Customs Enforcement, Enforcement and Removal Operations; Lower Merion Police Department; Cheltenham Police Department; Bernards Township Police Department; and Lambertville Police Department for their assistance in the investigation.
The case is being prosecuted by the Office’s Violent and Organized Crime Unit. Assistant U.S. Attorney Brandon D. Harper is in charge of the prosecution, with assistance from paralegal specialist William A. Coleman IV.
The charges contained in the Complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
u.s._v._maughan_and_dinnigan_complaint.pdf[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth herein constitute only allegations, and every fact descried therein should be treated as an allegation.
10 Chinese Nationals Charged with Large-Scale Hacking of U.S. and International Victims on Behalf of the Chinese GovernmentRead the Press Release
Matthew Podolsky, the Acting United States Attorney for the Southern District of New York; Sue J. Bai, the Head of the U.S. Department of Justice’s National Security Division; and Leslie R. Backschies, the Acting Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced the unsealing of a two-count criminal Indictment charging 10 defendants with a years-long hacking scheme committed through the Chinese company i-Soon. At the direction of the People’s Republic of China (“PRC”) government, i-Soon employees hacked and attempted to hack victims across the globe, including a large religious organization in the U.S., critics and dissidents of the PRC government, a state legislative body, U.S. government agencies, the ministries of foreign affairs of multiple governments in Asia, and news organizations. i-Soon’s victims were of interest to the PRC government because, among other reasons, they were prominent overseas critics of the PRC government or because the PRC government considered them threatening to the rule of the Chinese Communist Party. The 10 defendants remain at large.
Acting U.S. Attorney Matthew Podolsky said: “State-sponsored hacking is an acute threat to our community and national security. For years, these 10 defendants—two of whom we allege are PRC officials—used sophisticated hacking techniques to target religious organizations, journalists, and Government agencies, all to gather sensitive information for the use of the PRC. These charges will help stop these state-sponsored hackers and protect our national security. The career prosecutors of this Office and our law enforcement partners will continue to uncover alleged state-sponsored hacking schemes, disrupt them, and bring those responsible to justice.”
National Security Division Head Sue J. Bai said: “The Department of Justice will relentlessly pursue those who threaten our cybersecurity by stealing from our government and our people. Today, we are exposing the Chinese government agents directing and fostering indiscriminate and reckless attacks against computers and networks worldwide, as well as the enabling companies and individual hackers that they have unleashed. We will continue to fight to dismantle this ecosystem of cyber mercenaries and protect our national security.”
Acting Assistant Director in Charge Leslie R. Backschies said: “The charges announced today expose the PRC’s continued attempts to spy on and silence anyone it deems threatening to the Chinese Communist Party. As alleged in the indictment, the Chinese government tried to conceal its efforts by working through a private company, but their actions amount to years of state-sponsored hacking of religious and media organizations, numerous government agencies in multiple countries, and dissidents around the world who dared criticize the regime. The FBI will continue to work tirelessly to disrupt our adversaries’ use of emerging technology to silence dissent and undermine the rule of law across the globe.”
As alleged in the Indictment:[1]
The PRC’s Ministry of State Security (“MSS”) had responsibility for the PRC’s domestic counterintelligence, non-military foreign intelligence, and aspects of the PRC’s political and domestic security. The PRC’s Ministry of Public Security (“MPS”) had responsibility for the PRC’s public and political security, including responsibility for law enforcement. To acquire information of interest to the PRC government in a manner that obscured their involvement, the PRC’s MSS and MPS used an extensive network of private companies and contractors in China to conduct unauthorized computer intrusions (“hacks”) in the U.S. and elsewhere.
One of those private companies was i-Soon. From approximately 2016 through 2023, i-Soon and its personnel engaged in the numerous and widespread hacking of email accounts, cell phones, servers, and websites at the direction of, and in close coordination with, the PRC’s MSS and MPS. i-Soon generated tens of millions of dollars in revenue and at times had over 100 employees.
i-Soon’s primary customers were PRC government agencies. It worked with at least 43 different MSS or MPS bureaus and charged the MSS and MPS between approximately $10,000 and $75,000 for each email inbox it successfully hacked.
The victims of i-Soon’s hacking included:
- A newspaper based in New York, New York, that publishes news related to China and is opposed to the Chinese Communist Party.
- An additional newspaper based in New York, New York.
- The U.S. Defense Intelligence Agency, an agency within the Department of Defense that specializes in defense and military intelligence.
- The U.S. Department of Commerce and the International Trade Administration, an agency within the Department of Commerce that promotes U.S. exports and defends against unfair trade practices.
- A religious organization based in the U.S. that has thousands of churches and congregations and millions of members.
- A Texas-based organization founded by a prominent critic of the PRC government focused on promoting human rights and religious freedom in China.
- A news service funded by the U.S. government that delivers uncensored domestic news to audiences in Asian countries, including China, and is headquartered in Washington, D.C.
- A state research university in the U.S.
- The New York State Assembly, a part of the legislature of the state of New York.
- A religious leader who lived outside of China and the U.S.
- A newspaper based in Hong Kong, China, that has actively covered the politics of Hong Kong and continues to do so today.
- The foreign ministry of Taiwan.
- The foreign ministry of India.
- The foreign ministry of South Korea.
- The foreign ministry of Indonesia.
In many instances, the PRC government was particularly interested in these victims because they had criticized the PRC government. In other instances, the PRC government was particularly interested in foreign ministries because those foreign ministries were in communication with the U.S.
In some instances, i-Soon conducted its hacking at the direct request of the MSS or MPS. In other instances, i-Soon conducted hacks on its own initiative and then sold, or attempted to sell, the stolen data to different bureaus of the MSS or MPS.
i-Soon also trained MPS employees how to hack independently of i-Soon and offered a variety of hacking methods for sale to its customers. i-Soon touted what it called a “industry-leading offensive and defensive technology” and a “zero-day vulnerability arsenal” used to successfully hack computer systems. One of i-Soon’s products was software called the “Automated Penetration Testing Platform.” i-Soon advertised the platform’s ability to send email phishing attacks, to create files with malware that could provide access to victims’ computers if opened, and to clone websites of victims in order to induce them to submit personal information. An image of the interface for the Automated Penetration Testing Platform is below:
Another of i-Soon’s products was software that allowed the user to gain unauthorized access to online accounts or computer systems by deciphering passwords—also called “password cracking.” This platform was called the “Divine Mathematician Password Cracking Platform.” An image of the interface for the Divine Mathematician Password Cracking Platform is below:
i-Soon also sold software specifically designed to target victim accounts on a variety of computer systems and applications, including Microsoft Outlook; Gmail, the email service provided by Google LLC; the social media network X, formerly known as Twitter; the cellphone operating system Android; and the computer operating systems Windows, Macintosh, and Linux. i-Soon advertised its bespoke software as being able to overcome the unique defenses of these systems.
For example, with respect to Twitter, i-Soon sold software with the capability to send a victim a spear phishing link and then to obtain access to and control over the victim’s Twitter account. The software had the ability to access Twitter even without the victim’s password and to bypass multi-factor authentication. After a victim’s Twitter was compromised, the software could send tweets, delete tweets, forward tweets, make comments, and like tweets. The purpose of this software was to help i-Soon’s customers, including the PRC government, use hacked Twitter accounts to understand public opinion outside of China. For example, the software could be set to keep track of keywords appearing in tweets or messages. i-Soon referred to this software as its “Public Opinion Guidance and Control Platform (Overseas).” An image from the “Public Opinion Guidance and Control Platform (Overseas)” is below:
The 10 defendants charged are WU HAIBO, a/k/a “shutd0wn,” a/k/a “Boss Wu,” a/k/a “吴海波,” the Chief Executive Officer, and leader, of i-Soon; CHEN CHENG, a/k/a “lengmo,” a/k/a “Chief C,” a/k/a “Jesse Chen,” a/k/a “陈诚,” the Chief Operating Officer of i-Soon; WANG YAN, a/k/a “crysolo,” a/k/a “王堰,” the leader of one of i-Soon’s “penetration testing” teams; WANG ZHE, a/k/a “ken73224,” a/k/a “王哲,” the Sales Director of i-Soon; ZHOU WEIWEI, a/k/a “nullroot,” a/k/a “周伟伟,” the leader of i-Soon’s “Technology Research and Development Center”; WANG LIYU, a/k/a “PICNIC350116,” a/k/a “王立宇,” an MPS officer based in Chengdu, China; and SHENG JING, a/k/a “sjbible,” “盛晶,” the defendant, an MPS officer based in Shenzhen, China.
If you have information leading to the identification or location of these 10 defendants, please reach out to the Department of State at rewardsforjustice.net.
* * *
HAIBO, 43; CHENG, 40; GUODONG, 32; LI, 31; YAN, 35; ZHE, 44; WEIWEI, 37; LIANG, 28; LIYU, 36; and JING, 36, all nationals of China, are charged with conspiracy to commit computer intrusions, which carries a maximum sentence of five years in prison, and conspiracy to commit wire fraud, which carries a maximum sentence of 20 years in prison.
The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by a judge.
Mr. Podolsky praised the outstanding work of the FBI.
The case is being prosecuted by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Ryan B. Finkel, Steven J. Kochevar, and Kevin Mead are in charge of the prosecution. Trial Attorney Gregory J. Nicosia Jr. of the National Security Division’s National Security Cyber Section provided valuable assistance.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
u.s._v._wolf_indictment.pdf[1] As the introductory phrase signifies, the entirety of the text of the Indictment, and the description of the Indictment set forth herein, constitutes only allegations, and every fact described therein should be treated as an allegation.
Daycare Operator Sentenced to 45 Years in Prison in Connection with Fentanyl Poisoning of Four Children at A Bronx DaycareRead the Press Release
Matthew Podolsky, the Acting United States Attorney for the Southern District of New York, announced today that GREI MENDEZ was sentenced to 45 years in prison for trafficking fentanyl out of a daycare in the Bronx, New York, which resulted in the death of one child and the poisoning of three others. Mendez pled guilty on October 29, 2024, before U.S. District Judge Jed S. Rakoff, who imposed today’s sentence.
Acting U.S. Attorney Matthew Podolsky said: “Grei Mendez operated a daycare out of a basement apartment in the Bronx in which large quantities of deadly fentanyl were mixed, packaged, and stored. She put babies as young as eight months old directly in harm’s way as they slept, played, and ate in a room where over 11 kilograms of fentanyl was hidden underneath their feet, leading to the death of one child and the poisoning of others. No punishment can make up for a child lost, but today’s sentence sends the message that this Office and our law enforcement partners will work tirelessly to bring to justice anyone who uses children as a shield in the drug trade.”
According to the Complaint, the Indictment, and other documents in the public record:
From at least in or about June 2022 through September 2023, MENDEZ and others conspired to distribute narcotics out of Divino Niño Daycare in the Bronx. There, MENDEZ and her co-conspirators maintained more than 11 kilograms of fentanyl and heroin in secret compartments, or traps, located underneath the floor tiles in the playroom of the Daycare.
As a consequence of the drug conspiracy perpetrated by MENDEZ and her co-conspirators, on or about September 15, 2023, four children at the Daycare, all of whom were under three years of age, experienced the effects of poisoning from exposure to fentanyl. Three of the children were hospitalized. The fourth child, a 22-month-old boy, died.
* * *
In addition to the prison term, MENDEZ, 37, of the Bronx, New York, was sentenced to five years of supervised release.
Mr. Podolsky praised the outstanding investigative work of the Drug Enforcement Administration (“DEA”), the New York City Police Department (“NYPD”), the Southern District of New York Digital Forensic Unit, the Complex Analytical and Social Media Enhancement Team at the New York/New Jersey High Intensity Drug Trafficking Area, the Organized Crime Drug Enforcement Task Force (“OCDETF”) New York Strike Force, and the U.S. Marshals Service (“USMS”). Mr. Podolsky also thanked the NY/NJ Regional Fugitive Task Force of the USMS; the USMS Office of International Operations; the USMS for the Southern District of New York; the USMS for the Southern District of Texas; the USMS for the Southern District of California; the USMS Mexico Field Office; the USMS Investigative Operations Division; the DEA New York Strike Force; the DEA Regional Office in Allentown, Pennsylvania; the DEA Regional Office in McAllen, Texas; the DEA Regional Office in Mexico City, Mexico; the DEA Regional Office in Hermosillo, Mexico; the DEA Regional Office in Monterrey, Mexico; the DEA Special Operations Division; the NYPD 52nd Precinct’s Detective Squad; the NYPD Bronx Homicide Squad; the NYPD Laboratory; the Office of International Affairs of the Justice Department’s Criminal Division; the U.S. Attorney’s Office for the Southern District of Texas; the U.S. Attorney’s Office for the Southern District of California; U.S. Customs and Border Protection; and Mexican Federal and State authorities.
This prosecution is part of an OCDETF operation . OCDETF identifies, disrupts, and dismantles criminal organizations using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF. The OCDETF New York Strike Force provides for the establishment of permanent, multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations to disrupt and dismantle the most significant drug traffickers, money launderers, gangs, and transnational criminal organizations. The specific mission of the New York Strike Force is to target, disrupt, and dismantle drug trafficking and money laundering organizations, reduce the illegal drug supply in the United States, and bring criminals to justice.
This case is being prosecuted by the Office’s Narcotics Unit. Assistant U.S. Attorneys Maggie Lynaugh and Brandon C. Thompson, as well as Special Assistant U.S. Attorney Karl P. Miller of the Office of the Bronx County District Attorney’s Homicide Bureau, are in charge of the prosecution.
Mexican Drug Trafficker Extradited for Cocaine Importation and Weapons ChargesRead the Press Release
Matthew Podolsky, the Acting United States Attorney for the Southern District of New York, and Derek S. Maltz, the Acting Administrator of the U.S. Drug Enforcement Administration (“DEA”), announced that ITIEL PALACIOS GARCIA, a/k/a “El Playa,” a/k/a “El Compa Playa,” was extradited yesterday from Mexico to the United States. PALACIOS GARCIA is charged with conspiracy to import cocaine into the U.S., possession of machineguns and destructive devices, and conspiracy to possess machineguns and destructive devices. PALACIOS GARCIA was presented today before U.S. Magistrate Judge Henry J. Ricardo and detained without bail.
Acting U.S. Attorney Matthew Podolsky said: “As alleged, for years, Itiel Palacios Garcia led a violent drug trafficking organization in Mexico that directed vast quantities of cocaine into communities in the United States. Palacios Garcia and his organization allegedly used assault rifles, grenades, and other heavy weapons to protect his drug trafficking territory and to battle drug rivals. This Office and our law enforcement partners stand committed to cutting off the flow of dangerous drugs into our country and bringing international drug traffickers to justice.”
According to the allegations contained in the Complaint, Indictment, and other court filings:[1]
PALACIOS GARCIA was the leader of a drug trafficking organization based in Guerrero, Mexico. Between at least 2012 and 2020, PALACIOS GARCIA trafficked ton quantities of cocaine, including from Guatemala, that he then transported through his territory and into the U.S. PALACIOS GARCIA and his co-conspirators used weapons like firearms, assault rifles, and grenades to protect their drug trafficking activities and to fight violent drug wars with rival groups, such as the Los Zetas drug cartel.
For example, in or about 2016, PALACIOS GARCIA and his associates purchased an aircraft, which they used to successfully transport approximately 800 kilograms of cocaine from Colombia to Venezuela, and then from Venezuela to Guatemala, where the cocaine was unloaded and transported by land to Mexico and finally the U.S. As another example, in or about 2020, PALACIOS GARCIA and his associates organized another plane load of cocaine, which crashed in the El Petén region of Guatemala in or about April 2020. Both pilots died upon impact, and Guatemalan law enforcement authorities recovered approximately 800 kilograms of cocaine from the wreckage.
* * *
PALACIOS GARCIA, 42, of Mexico, is charged with: conspiring to import cocaine into the U.S. and to traffic it on board an aircraft registered in the U.S., which carries a mandatory minimum sentence of 10 years in prison and a maximum sentence of life in prison (Count One); possessing machineguns and destructive devices in connection with the importation conspiracy charged in Count One, which carries a mandatory minimum consecutive sentence of 30 years in prison and a maximum sentence of life in prison (Count Two); and conspiring to use, carry, and possess machineguns and destructive devices in connection with the importation conspiracy charged in Count One, which carries a maximum sentence of life in prison (Count Three).
The mandatory minimum and maximum potential sentences in this case are prescribed by Congress and provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Podolsky praised the outstanding investigative work of the DEA’s Special Operations Division, Bilateral Investigations Unit and multiple DEA offices throughout Mexico, as well as the assistance of the Office of International Affairs of the Justice Department’s Criminal Division and the U.S. Marshals Service.
This prosecution is being handled by the Office’s National Security and International Narcotics Unit. Assistant U.S. Attorneys Nicholas S. Bradley, Jane Y. Chong, Sarah L. Kushner, Alexander Li, Daniel G. Nessim, David J. Robles, and Kyle A. Wirshba are in charge of the prosecution.
The charges contained in the Complaint and Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
u.s._v._playa_indictment.pdf u.s._v._playa_complaint_0.pdf[1] As the introductory phrase signifies, the entirety of the text of the Complaint and Indictment, and the description of the other court filings set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Mexican Cartel Leader Jesus Mendez-Vargas in U.S. Custody on Drug Importation ChargeRead the Press Release
Matthew Podolsky, the Acting United States Attorney for the Southern District of New York, and Frank A. Tarentino, the Special Agent in Charge of the New York Division of the U.S. Drug Enforcement Administration (“DEA”), announced today the unsealing of an Indictment charging JESUS MENDEZ-VARGAS, a/k/a “Chango,” with conspiring to import cocaine and methamphetamine into the U.S. MENDEZ-VARGAS was taken into U.S. custody from Mexico and was presented on the charge contained in the Indictment today before U.S. Magistrate Judge Henry J. Ricardo. The case is assigned to U.S. District Judge John G. Koeltl.
Acting U.S. Attorney Matthew Podolsky said: “As alleged, Jesus Mendez-Vargas was a leader of the violent drug trafficking organization, La Familia Michoacana, based in Mexico, with primary responsibility for the organization’s drug trafficking activities from approximately 2006 to 2011. La Familia imported vast quantities of cocaine and methamphetamine into the United States from Mexico and engaged in extensive violence in furtherance of its drug trafficking activities, including against those Mexican law enforcement officials who stood in its way. This Office and our law enforcement partners will not stop working to see that those who lead violent drug trafficking organizations are met with the consequences of their actions. Mendez-Vargas will now face justice in an American courtroom.”
DEA Special Agent in Charge Frank A. Tarentino said: “The indictment against Jesus Mendez-Vargas, leader of La Familia Michoacana cartel is another example of the DEA’s determination to identify, target and eliminate drug traffickers poisoning our communities with fentanyl and methamphetamine. This removal demonstrates the New York Division’s relentless pursuit and unwavering commitment to hold accountable those who endanger our communities and traffic violence and drugs across our borders.”
According to the allegations contained in the Indictment:1
MENDEZ-VARGAS was a leader in La Familia Michoacana (“LFM”), a powerful, violent drug trafficking organization based in the state of Michoacan, in southwestern Mexico. LFM controlled drug manufacturing and distribution within and around the state of Michoacan, as well as the port of Lazaro Cardenas, a key drug transshipment point. LFM imported vast quantities of cocaine and methamphetamine into the U.S. from Mexico. LFM leadership forbade the sale or use of methamphetamine in the areas under its control in Mexico, and instructed LFM members that its methamphetamine was solely for export to the U.S. From approximately 2006 to 2011, MENDEZ-VARGAS was a leader of LFM, with primary responsibility for LFM’s drug trafficking activities.
LFM engaged in violence, including assault, murder, and kidnapping to support its narcotics trafficking activities. LFM also used heavy weaponry, including military-grade weapons, assault weapons, and ammunition smuggled from the U.S. to Mexico by LFM’s associates for use by LFM. On or about July 14, 2009, approximately two days after the arrest of a high-level LFM leader, the bodies of 12 Mexican federal police officers believed to have been murdered were discovered in Michoacan. Days later, another member of LFM contacted a local television station in Michoacan and, among other things, claimed that LFM was in a battle against the Mexican federal police and prosecutors, and that LFM kidnaps people who owed LFM money and those whose family members worked in state and federal governments.
* * *
MENDEZ-VARGAS, 51, of Mexico, is charged with conspiring to import cocaine and methamphetamine into the U.S., which carries a mandatory minimum sentence of 10 years in prison and a maximum sentence of life in prison.
The mandatory minimum and maximum potential sentences in this case are prescribed by Congress and provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Podolsky praised the outstanding investigative work of the DEA’s New York Field Division, as well as the assistance of the Office of International Affairs of the Justice Department’s Criminal Division and the U.S. Marshals Service.
This prosecution is part of an OCDETF operation. OCDETF identifies, disrupts, and dismantles criminal organizations using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF. The OCDETF New York Strike Force provides for the establishment of permanent, multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations to disrupt and dismantle the most significant drug traffickers, money launderers, gangs, and transnational criminal organizations. The specific mission of the New York Strike Force is to target, disrupt, and dismantle drug trafficking and money laundering organizations, reduce the illegal drug supply in the United States, and bring criminals to justice.
This prosecution is being handled by the Office’s National Security and International Narcotics Unit. Assistant U.S. Attorneys Nicholas S. Bradley, Jane Y. Chong, Sarah L. Kushner, Alexander N. Li, Daniel G. Nessim, David J. Robles, and Kyle A. Wirshba are in charge of the prosecution.
The charge contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
u.s._v._mendez-vargas_indictment.pdf
1 As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth herein constitute only allegations, and every fact described should be treated as an allegation.
U.S. Attorney Announces Charges Against Seven Defendants in Armed Transnational Cocaine and Methamphetamine Distribution ConspiraciesRead the Press Release
Matthew Podolsky, the Acting United States Attorney for the Southern District of New York; James E. Dennehy, the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”); and Francis J. Russo, the Director of Field Operations for the New York Field Office of U.S. Customs and Border Protection, announced today the unsealing of an Indictment charging seven defendants with narcotics trafficking and firearms offenses. The case is assigned to U.S. District Judge Edgardo Ramos.
Since at least in or about October 2023, SHEHNAZ SINGH, a/k/a “SHAWN,” along with his co-conspirators, AMRITPAL SINGH, a/k/a “AMRIT,” a/k/a “Bal,” AMRITPAL SINGH, a/k/a “CHEEMA,” TAKDIR SINGH, a/k/a “ROMY,” SARBSIT SINGH, a/k/a “SABI,” and GURLAL SINGH (“GURLAL”), operated a transnational conspiracy to import cocaine into the U.S. from Colombia and distribute the drug in cities across the U.S. and into Canada. Beginning in or about April 2024, a subset of these conspirators—led by ROMY and SABI, and joined by co-conspirators including FERNANDO VALLADARES, a/k/a “FRANCO”—stole a cache of cocaine from their original co-conspirators and agreed to distribute it out of, among other places, hotels in New York City. Members of the two armed drug trafficking conspiracies hunted each other down, brandished a firearm, and threatened the lives of each other and innocent family members.
Four defendants are in custody after arrests made on the morning of February 26, 2025. Searches of various of the defendants’ residences and vehicles conducted at the time of arrest resulted in the seizure of four firearms, approximately 391 kilograms of methamphetamine, and approximately 109 kilograms of cocaine. CHEEMA was arrested in the Eastern District of California and was presented before U.S. Magistrate Judge Christopher D. Baker and detained; ROMY and SABI were arrested in the Northern District of Ohio and were presented before U.S. Magistrate Judge James E. Grimes Jr. and detained; and FRANCO was arrested in the Eastern District of New York, presented before U.S. Magistrate Judge Henry J. Ricardo, and released on certain conditions. AMRIT and GURLAL are in custody in Pennsylvania after prior arrests. SHAWN remains at large.
Acting U.S. Attorney Matthew Podolsky said: “For more than a year, Shehnaz Singh and his associates not only imported dangerous drugs to sell across the United States but also armed themselves with deadly weapons and endangered communities here in New York City and around the country. This week, we and our law enforcement partners halted that dangerous activity and took drugs and guns off the street. I commend the career prosecutors of the Southern District of New York, and our partners at the Federal Bureau of Investigation and U.S. Customs and Border Protection, for their tireless efforts to disrupt this dangerous distribution network and to keep communities safe for our country and our neighbors, too. We hope that today’s charges bring accountability to those who push drugs and use violence to protect their criminal organizations.”
FBI Assistant Director in Charge James E. Dennehy said: "These seven defendants allegedly established an international trade route to distribute hundreds of kilograms of lethal narcotics across the Western Hemisphere before it collapsed amidst threats of inter-retaliatory violence and death. This alleged conspiracy exposed our communities to significant quantities of highly dangerous drugs simply to bolster illicit profits. May today's arrests reaffirm the FBI's commitment to dismantling any criminal enterprise that exploits our country's transportation network and risks the wellbeing of our citizens."
CBP Director of Field Operations Francis J. Russo said: “Every day our CBP officers and law enforcement partners relentlessly pursue the most vicious and brutal criminal drug organizations in the world who do business globally and right here in our local communities and neighborhoods. We will not stop until networks such as this one and their criminal facilitators are off the street and brought to justice. CBP will continue its unwavering commitment to keeping Americans safe from the dangers of drugs and the violence they often bring.”
According to the allegations contained in the Indictments, other court filings, and statements made during court proceedings:[1]
Since at least in or about October 2023, a group of conspirators led by SHAWN—a Canada-based drug trafficker who holds himself out as a corrupt police officer—operated a drug trafficking organization that imported cocaine into the U.S., transported it to stash houses and other distribution sites using networks of trucking companies and drivers, and sold it in communities across the U.S. and into Canada (the “Original Cocaine Conspiracy”). AMRIT and CHEEMA, served as, among other things, SHAWN’s enforcers, and helped operated the drug trafficking organization by safekeeping and distributing cocaine while armed with guns.
Members of the Original Cocaine Conspiracy imported cocaine into the U.S. from Colombia and delivered the drug to coconspirators in the midwestern U.S., including a vacant home used by AMRIT and others in Indiana. From there, the cocaine was distributed across the U.S. and to Canada, including through and to California, Michigan, Indiana, Ohio, Pennsylvania, New Jersey, and New York. This cross-border trade, from Colombia to the U.S. and Canada, was lucrative. As AMRIT described it: “It costs roughly about two, four, or five thousand dollars per [kilo in Colombia]. When it reaches America, it’s worth twelve to thirteen thousand. When it reaches Canada, it’s thirty thousand.” In total, this organization was moving more than 600 kilograms of cocaine and methamphetamine a week.
Beginning in or about April 2024, a subset of the Original Cocaine Conspiracy’s members—ROMY and SABI—stole a large cache of cocaine from their co-conspirators in the Original Cocaine Conspiracy and worked with others, including FRANCO—to distribute the stolen cocaine from, among other places, two hotels in New York City (the “Stolen Cocaine Conspiracy”). After a co-conspirator (“CC-1”) crashed a truck carrying approximately 10 kilograms of the group’s cocaine and abandoned his cargo, members of the Original Cocaine Conspiracy announced plans to travel to New York with weapons to reclaim their stolen drugs and serve vengeance on members of the Stolen Cocaine Conspiracy and their families. As AMRIT put it: “We need our stuff. We aren’t letting anyone go. We are going to kill them all.” The day before arriving in New York City, AMRIT and CHEEMA, took photos of themselves displaying weapons over a large cache of stacked cocaine.
Once in New York, AMRIT and CHEEMA threatened members of the Stolen Cocaine Conspiracy and their family members with violence. In just one such incident, at a meeting in front of a home on suburban Long Island, AMRIT thrust a handgun into CC-1’s teenage brother’s neck while demanding to know the location of the stolen cocaine.
While executing arrests of certain of the defendants and searches of various residences and vehicles, law enforcement agents seized four firearms, approximately 391 kilograms of methamphetamine, and approximately 109 kilograms of cocaine. CHEEMA was stopped while fleeing a residence in Bakersfield, California, and arrested in possession of a loaded handgun. Three additional firearms were seized from residences or vehicles belonging to or controlled by ROMY and SABI in Cleveland, Ohio, where agents also seized approximately 391 kilograms of methamphetamine and approximately 109 kilograms of cocaine. The seized firearms and narcotics are shown below.
Cocaine intercepted en route to ROMY and SABI
Methamphetamine seized from SABI’s residence
* * *
A chart containing the charges and minimum and maximum penalties each defendant faces is attached. The statutory minimum and maximum penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants would be determined by a judge.
Mr. Podolsky praised the outstanding investigative work of the FBI and CBP. Mr. Podolsky further thanked the New York City Police Department, the U.S. Attorney’s Office for the Northern District of Ohio, the Cleveland Organized Crime Drug Enforcement Task Forces (“OCDETF”) Strike Force, the Cleveland Division of Police, the U.S. Attorney’s Office for the Eastern District of California, the FBI’s Sacramento Field Office and Bakersfield Resident Agency, the FBI’s Cartel, Gang, Narcotics, & Laundering Task Force, the Cleveland Division of Police Coast Guard Investigative Service, and the Bakersfield (Calif.) Police Department, for their assistance and cooperation in the investigation.
This prosecution is part of an OCDETF operation. OCDETF identifies, disrupts, and dismantles criminal organizations using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
This case is being handled by the Office’s Narcotics Unit. Assistant U.S. Attorneys William C. Kinder and Justin Horton are in charge of the prosecution.
The charges in the Indictments are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Defendant
Age
Charges
Minimum and Maximum Sentences
SHEHNAZ SINGH, a/k/a “Shawn”34
Cocaine distribution conspiracy; using, carrying, and possessing firearms during and in relation to, or in furtherance of, a drug trafficking crimeMinimum of 10 years and a maximum of life in prison (cocaine distribution conspiracy); minimum of five consecutive years in prison and a maximum of life (firearms offense)AMRITPAL SINGH, a/k/a “Amrit,” a/k/a “Bal”30
Cocaine distribution conspiracy; brandishing a firearm during and in relation to a drug trafficking crimeMinimum of 10 years and a maximum of life in prison (cocaine distribution conspiracy); minimum of seven consecutive years in prison and a maximum of life (firearms offense)AMRITPAL SINGH, a/k/a “Cheema”26
Cocaine distribution conspiracy; using, carrying, and possessing firearms during and in relation to, or in furtherance of, a drug trafficking crimeMinimum of 10 years and a maximum of life in prison (cocaine distribution conspiracy); minimum of five consecutive years in prison and a maximum of life (firearms offense)TAKDIR SINGH, a/k/a “Romy”33
Cocaine distribution conspiracy; using, carrying, and possessing firearms during and in relation to, or in furtherance of, a drug trafficking crimeMinimum of 10 years and a maximum of life in prison (cocaine distribution conspiracy); minimum of five consecutive years in prison and a maximum of life (firearms offense)SARBSIT SINGH, a/k/a “Sabi”32
Cocaine distribution conspiracy; using, carrying, and possessing firearms during and in relation to, or in furtherance of, a drug trafficking crimeMinimum of 10 years and a maximum of life in prison (cocaine distribution conspiracy); minimum of five consecutive years in prison and a maximum of life (firearms offense)GURLAL SINGH29
Cocaine distribution conspiracy; using, carrying, and possessing firearms during and in relation to, or in furtherance of, a drug trafficking crimeMinimum of 10 years and a maximum of life in prison (cocaine distribution conspiracy); minimum of five consecutive years in prison and a maximum of life (firearms offense)FERNANDO VALLADARES, a/k/a “Franco”36
Cocaine distribution conspiracyMinimum of 10 years and a maximum of life in prison u.s._v._singh_et_al_indictment.pdf[1] As the introductory phrase signifies, the entirety of the text of the Indictments and the description of the Indictments set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Mount Vernon Native Sentenced to 11 Years in Prison for Orchestrating $7.6 Million COVID-19 Fraud SchemeRead the Press Release
Matthew Podolsky, the Acting United States Attorney for the Southern District of New York, announced that JACOB CARTER, who led a scheme to defraud the U.S. Small Business Administration (“SBA”) of more than $7.6 million, was sentenced by U.S. District Judge Nelson S. Román to 11 years in prison. CARTER and co-defendants Quadri Salahuddin and Anwar Salahuddin were convicted at trial on February 9, 2024, for conspiracy to commit wire fraud, wire fraud, and aggravated identity theft.
Acting U.S. Attorney Matthew Podolsky said: “Jacob Carter took advantage of a taxpayer-funded program intended to help small businesses in desperate need during the COVID-19 pandemic. Some small businesses that were eligible for and deserving of this money did not get it because funds ran out. Carter used his ill-gotten gains for far more selfish pursuits, including expensive jewelry and a Lamborghini. Thanks to the work of our law enforcement partners at the FBI and the career prosecutors of this Office, Carter has now received just punishment.”
According to the Indictment, publics filings, public court proceedings and filings, and the evidence presented at trial and in connection with sentencing:
The SBA is a federal agency of the Executive Branch that administers assistance to American small businesses. This assistance includes making direct loans to applicants through the Economic Injury Disaster Loan (“EIDL”) Program. In response to the COVID-19 pandemic, Congress expanded SBA’s EIDL Program to provide small businesses with low-interest loans of up to $2 million prior to in or about May 2020 and up to $150,000 beginning in or about May 2020, in order to provide vital economic support to help overcome the loss of revenue small businesses are experiencing due to COVID-19. Applicants seeking a loan under the EIDL program were also now permitted to request and receive an advance of approximately $1,000 per employee, for an amount up to $10,000, which the SBA has generally provided while the loan application was pending.
From March through July 2020, CARTER and co-defendants Quadri Salahuddin, Anwar Salahuddin, and Crystal Ransom, used the identities of more than 1,000 other individuals (the “Applicants”) to submit more than 1,000 online applications to the SBA, seeking over $10 million of funds through the SBA’s EIDL Program (the “EIDL Applications”). In connection with the EIDL Applications, CARTER, Quadri Salahuddin, Anwar Salahuddin, and Ransom falsely represented to the SBA that the Applicants were the owners of businesses with 10 or more employees. However, that was a lie – the individuals did not own businesses or employ people. Based on the fraudulent EIDL Applications, the SBA made advance payments of more than $7.6 million to the Applicants, who then kicked back a portion of the advance payments to CARTER, Quadri Salahuddin, Anwar Salahuddin, and Ransom. After the defendants collected millions of dollars in kickback payments, CARTER took photographs of his stacks of cash, purchased expensive jewelry, and leased a Lamborghini.
* * *
In addition to the prison term, CARTER, 39, of Capitol Heights, Maryland, was sentenced to three years of supervised release. CARTER was also ordered to pay restitution in the amount of $7,737,000 to the SBA and forfeiture in the amount of $1,720,950.
Ransom pled guilty to conspiracy to commit wire fraud and was sentenced on April 24, 2024, to two years in prison to be followed by three years of supervised release with the first six months under home confinement. The Court also ordered that Ransom pay restitution in the amount of $7,577,000 to the SBA and forfeiture in the amount of $99,000. Quadri Salahuddin and Anwar Salahuddin are scheduled to be sentenced on March 26, 2025.
Mr. Podolsky praised the outstanding work of the Federal Bureau of Investigation and the Air Force Office of Special Investigations.
The case is being handled by the Office’s White Plains Division. Assistant U.S. Attorneys Jeffrey C. Coffman, Courtney L. Heavey, and Jared D. Hoffman are in charge of the prosecution.
Bronx Man Sentenced to 160 Months in Prison for Robberies and Firearms OffenseRead the Press Release
Matthew Podolsky, the Acting United States Attorney for the Southern District of New York, announced that JAMES KELLY was sentenced today to 160 months in prison for robbing two delis in the Bronx, New York, and pointing a gun at deli workers during one of the robberies. KELLY’s sentence was imposed by U.S. District Judge Gregory H. Woods, who also presided over a four-day trial after which KELLY was convicted of two counts of Hobbs Act robbery and one count of brandishing a firearm in connection with one of the robberies.
Acting U.S. Attorney Matthew Podolsky said: “James Kelly terrorized workers at local delis in the Bronx by threatening to shoot them, pointing a gun at them, and robbing them at their workplace. As today’s sentence shows, violent offenders who commit these heinous crimes will face harsh penalties. We thank our law enforcement partners for their determination in holding those who commit violent crimes, like Kelly, accountable and for their tireless pursuit of justice for victims.”
According to the allegations in the Indictment, the evidence presented during the trial and court proceedings, court filings, and statements made in court proceedings:
On October 10, 2021, KELLY entered a deli in the Bronx with his hands in his pocket, purporting to have a gun. KELLY approached a deli employee working alone in the store, threatened to shoot him, and demanded cash. After the deli employee gave KELLY cash, KELLY ordered the deli employee to get down on the ground and said that if the employee moved, he would “shoot the shit” out of the employee. 15 months later, on January 15, 2023, KELLY robbed another deli in the Bronx, pointed a gun at two deli employees, again demanded cash and threatened to shoot them, and again ordered them to get on the ground.
* * *
In addition to the prison term, KELLY, 32, of the Bronx, New York, was sentenced to three years of supervised release and ordered to pay restitution in the amount of $1,900 and forfeit $1,900.
Mr. Podolsky praised the outstanding investigative work of the New York City Police Department Bronx Violent Crimes Squad and the investigators of the Office.
This case is being supervised by the Office’s General Crimes Unit. Assistant U.S. Attorneys Connie L. Dang, Adam Z. Margulies, Georgia V. Kostopoulos, Katherine Cheng, and David R. Felton are in charge of the prosecution, with the assistance of Paralegal Specialist Olivia Sebade.
New York Man Indicted in Connection with 2023 Shooting Using “Ghost Gun”Read the Press Release
Matthew Podolsky, the Acting United States Attorney for the Southern District of New York; Michael Alfonso, the Acting Special Agent in Charge of the New York Field Office of Homeland Security Investigations (“HSI”); and Jessica S. Tisch, the Commissioner of the New York City Police Department (“NYPD”), announced today the unsealing of an Indictment charging TERRY BROOKS with three counts of possessing firearms and ammunition after a felony conviction. The charges relate to a November 12, 2023, shooting and the subsequent seizures of the defendant’s firearms and ammunition on August 14 and August 21, 2024. The case is assigned to U.S. District Judge Margaret M. Garnett.
Acting U.S. Attorney Matthew Podolsky said: “As alleged, on November 12, 2023, while on a public sidewalk in the Bronx, Terry Brooks reached into his waistband, pulled out a gun, and began shooting. Brooks missed his target but struck a nearby bystander, causing serious injury. Brooks had purchased more than 50 firearm components online and possessed privately manufactured and unregistered ‘ghost guns,’ but this did not stop law enforcement from catching him. Thanks to the work of the career prosecutors in this Office and our partners at HSI and the NYPD, Brooks has been arrested and will face trial.”
HSI Acting Special Agent in Charge Michael Alfonso said: “The defendant’s indictment today underscores the HSI New York El Dorado Task Force’s ability to aggressively pursue investigative leads in whatever forms they take. Violent crime precursors no longer fit one specific mold, and HSI, alongside the NYPD, continues to adapt to target alleged bad actors and predicate felons determined to commit crimes. New York City is a safer place with Terry Brooks off the streets.”
NYPD Police Commissioner Jessica S. Tisch said: “This indictment makes one thing clear: Untraceable ghost guns will not be tolerated in our city. Thanks to the meticulous work of the NYPD investigators, along with our law enforcement partners at HSI and the office of the U.S. Attorney for the Southern District of New York, this armed perpetrator—who terrorized our streets and injured an innocent bystander—will be held fully accountable. Every New Yorker deserves to feel safe, and removing every illegal firearm, whether trackable or disguised, brings us one step closer to achieving that goal.”
As alleged in the Indictment returned today and the Complaint unsealed on January 30, 2025:[1]
On November 12, 2023, a man—subsequently identified as BROOKS—fired a gun in the Bronx, New York, near the corner of E. 180th St. and Bathgate Ave. The bullet struck a bystander, who was rushed to a hospital, received medical treatment, and survived. Approximately three minutes after the shooting, officers responded. Officers immediately found a shell casing at the scene of the crime.
After obtaining surveillance video footage from several sources, officers were able to track the shooter, together with a female companion, from a particular hotel room to the scene of the shooting and back to the same hotel room. Hotel records identify BROOKS as someone who was staying in the hotel room at that time. BROOKS drove a red Toyota Corolla to and from the scene of the shooting, and the license plate is visible in some of the surveillance footage. BROOKS has received moving violations while driving that Corolla, which is registered to a woman with whom BROOKS sometimes resides.
Officers obtained search warrants for two premises where BROOKS sometimes resides. On August 14, 2024, while executing the warrants, officers encountered guns, firearm parts, and ammunition in close proximity to objects and documents bearing BROOKS’s name and likeness. Ballistics testing established that the shell casing found immediately after the shooting in November 2023 had been fired by one of the ghost guns recovered pursuant to these warrants.
Finally, on August 21, 2024, officers arrested BROOKS in the same hotel where he had been staying on the night of the shooting. The officers recovered yet another firearm, which was in plain view on a nightstand.
* * *
BROOKS, 58, of New York, New York, is charged with one count of possessing ammunition on or about November 12, 2023; one count of possessing firearms and ammunition on or about August 14, 2024; and one count of possessing a firearm and ammunition on or about August 21, 2024. Each count carries a maximum sentence of 15 years in prison.
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by a judge.
Mr. Podolsky praised the outstanding investigative work of HSI and the NYPD.
This case is being handled by the Office’s General Crimes Unit. Assistant U.S. Attorneys Kevin Grossinger and James Mandilk are in charge of the prosecution.
u.s._v._brooks_indictment.pdf[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the descriptions of the Indictment constitute only allegations, and every fact described should be treated as an allegation.
Former NYCHA Superintendent Sentenced to 41 Months in Prison for Bribery and ExtortionRead the Press Release
Matthew Podolsky, the Acting United States Attorney for the Southern District of New York, announced that JOY HARRIS, a former superintendent for the New York City Housing Authority (“NYCHA”), was sentenced today to 41 months in prison for soliciting and accepting over $50,000 in bribes from contractors in exchange for awarding those contractors at least approximately $500,000 in contract work. HARRIS’s sentence was imposed by U.S. District Judge Lewis A. Kaplan, who also presided over a one-week trial after which HARRIS was convicted of bribery and extortion under color of official right.
Acting U.S. Attorney Matthew Podolsky said: “Joy Harris was given a position of public trust in New York City. She used that position to demand bribes in exchange for approving important repair work at NYCHA buildings. As today’s sentence shows, those who abuse positions of public trust—at any level of government—to seek personal gain will face a harsh penalty.”
According to the Indictment, public court filings, statements made in court, and evidence presented during trial:
NYCHA is the largest public housing authority in the country, providing housing to New Yorkers across the City and receiving over $1.5 billion in federal funding from the U.S. Department of Housing and Urban Development (“HUD”) every year. When repairs or construction work at NYCHA housing require the use of outside contractors, services must typically be purchased via a bidding process. However, when the value of a contract was under a certain threshold, designated staff at NYCHA developments, including superintendents, could hire a contractor of their choosing without soliciting multiple bids. With either type of contract, a NYCHA employee needed to certify that the work was satisfactorily completed in order for the contractor to receive payment from NYCHA.
HARRIS, an assistant superintendent and superintendent at four different NYCHA developments in Manhattan from 2015 through 2021, demanded and accepted cash bribes in exchange for NYCHA contracts. She demanded contractors to pay bribes up front in order to be awarded the contracts and accepted bribe payments after the contractor finished the work and needed a NYCHA employee to sign off on the completed job so that the contractor could be paid by NYCHA. HARRIS typically demanded 10% of the contract value—between $500 and $1,000 depending on the size of the contract. In total, HARRIS demanded and accepted more than $54,150 of dollars in bribes in exchange for awarding no-bid contracts or approving payment on previously awarded contracts worth more than $500,000.
Of the 70 individual NYCHA employees charged with bribery and extortion offenses who were arrested in February 2024, 61 have pled guilty, and three have been convicted after trial. HARRIS is the first of the three NYCHA employees convicted after trial to be sentenced. The cases of the six remaining defendants, who are each presumed innocent unless and until proven guilty, remain pending.
If you believe you have information related to bribery, extortion, or any other illegal conduct by NYCHA employees, please contact [email protected] or (212) 306-3356. If you were involved in such conduct, please consider self-disclosing through the SDNY Whistleblower Pilot Program at [email protected].
* * *
In addition to the prison term, HARRIS, 49, of Bushkill, Pennsylvania, was sentenced to three years of supervised release and ordered to pay restitution in the amount of $54,150 and forfeit $54,150.
Mr. Podolsky praised the outstanding investigative work of the New York City Department of Investigation, U.S. Department of Homeland Security – Homeland Security Investigations (“HSI”), the HUD Office of Inspector General, and the U.S. Department of Labor – Office of Inspector General, which work together collaboratively as part of the HSI Document and Benefit Fraud Task Force, as well as the Special Agents and Task Force Officers of the U.S. Attorney’s Office for the Southern District of New York.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (“OCDETF”) operation. OCDETF identifies, disrupts, and dismantles criminal organizations using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
This case is being handled by the Office’s Public Corruption Unit. Assistant U.S. Attorneys Jerry J. Fang, Jacob R. Fiddelman, Catherine Ghosh, and Meredith C. Foster are in charge of the prosecution, with the assistance of Paralegal Specialists Jayda Foote and Nandita Vasantha.
Bronx Former Attorney Sentenced to 70 Months in Prison for Large-Scale Immigration FraudRead the Press Release
Matthew Podolsky, Acting United States Attorney for the Southern District of New York, announced today that KOFI AMANKWAA, a Bronx-based former immigration attorney, was sentenced to 70 months in prison for immigration fraud in connection with his supervision of a multi-year scheme to file fraudulent immigration documents under the Violence Against Women Act (“VAWA”). AMANKWAA pled guilty on September 17, 2024, before U.S. District Judge Katherine Polk Failla, who imposed today’s sentence.
Acting U.S. Attorney Matthew Podolsky said: “Kofi Amankwaa, a former immigration attorney,made a mockery of the U.S. immigration system and VAWA — a law that provides noncitizen victims of domestic abuse a path to lawful permanent residence status — by filing thousands of immigration documents falsely alleging that his clients were victims of abuse by their children or other family members. Amankwaa repeatedly filed these false applications without telling his clients that he was doing so, and pocketed thousands of dollars from each client he victimized. Amankwaa now faces a significant prison sentence for his crimes.”
According to the allegations in the Information, public filings, and statements made in public court proceedings:
From September 2016 through November 2023, AMANKWAA and others at his direction met with clients and instructed them to sign fraudulent Form I-360 VAWA Petitions falsely stating that the clients were abused by their U.S. citizen children. AMANKWAA also signed the petitions, under penalty of perjury, as the attorney preparer.
AMANKWAA used the filing of the fraudulent Form I-360 VAWA Petitions, among other filings, as a basis to request for his clients advance parole travel documents — documents that enable individuals without legal status in the U.S. to travel abroad temporarily and return. AMANKWAA then directed his clients, upon obtaining the advance parole travel documents, to travel abroad and return to the U.S. Last, AMANKWAA used the fraudulently procured advance parole as a basis for his clients to apply for lawful permanent resident status.
AMANKWAA carried out this illegal scheme knowing that his clients had not, in fact, been abused by their children or without asking whether any such abuse occurred. Moreover, AMANKWAA was often unsuccessful in obtaining lawful permanent resident status for his clients because the clients’ immigration applications were denied on the basis of fraud, among other reasons. AMANKWAA typically charged his clients between $3,000 and $6,000 for his services, plus administrative fees.
In November 2023, following numerous complaints by clients regarding the fraudulent abuse allegations, AMANKWAA’s license to practice law in the State of New York was suspended, and in August 2024, AMANKWAA was disbarred.
* * *
In addition to the prison term, AMANKWAA, 70, of South River, New Jersey, was sentenced to three years of supervised release, and ordered to forfeit $13,389,000. As part of his plea agreement, AMANKWAA has also agreed to pay $16,503,425 in restitution to his victims. If you believe you or your family member is a victim of VAWA fraud who may be entitled to restitution from AMANKWAA, please contact [email protected].
Mr. Podolsky praised the outstanding investigative work of the Newark Field Office of Homeland Security Investigations. Mr. Podolsky also thanked the U.S. Citizenship and Immigration Services’ Office of Fraud Detection and National Security for their support in this investigation.
This case is being handled by the Office’s General Crimes Unit. Assistant U.S. Attorney Adam Z. Margulies is in charge of the prosecution, with assistance from Paralegal Specialist Samantha Roberts.
OKX Pleads Guilty to Violating U.S. Anti-Money Laundering Laws and Agrees to Pay Penalties Totaling More Than $500 MillionRead the Press Release
Matthew Podolsky, the Acting United States Attorney for the Southern District of New York, and James E. Dennehy, the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today that Aux Cayes Fintech Co. Ltd, d/b/a “OKEx,” d/b/a “OKX” (“OKX”), a Seychelles-based entity, that since at least 2017 has operated OKX, one of the largest cryptocurrency exchanges in the world, pled guilty today to one count of operating an unlicensed money transmitting business. In connection with today’s guilty plea and sentencing, OKX agreed to pay monetary penalties totaling more than $504 million. The case was assigned to U.S. District Judge Katherine Polk Failla, who presided over today’s guilty plea and sentencing.
Acting U.S. Attorney Matthew Podolsky said: “For over seven years, OKX knowingly violated anti-money laundering laws and avoided implementing required policies to prevent criminals from abusing our financial system. As a result, OKX was used to facilitate over five billion dollars’ worth of suspicious transactions and criminal proceeds. Today’s guilty plea and penalties emphasize that there will be consequences for financial institutions that avail themselves of U.S. markets but violate the law by allowing criminal activity to continue.”
FBI Assistant Director in Charge James E. Dennehy said: “For years, OKX flagrantly violated U.S. law, actively seeking customers in the United States—including here in New York—and even going so far as to advise individuals to provide false information to circumvent requisite procedures. Furthermore, in their failure to adhere to U.S. law, significant illicit transactions which furthered other criminal activity went undetected on their platform. Blatant disregard for the rule of law will not be tolerated, and the FBI is committed to working with our partners across government to ensure that corporations that engage in this type of conduct are held accountable for their actions.”
According to court documents and admissions:
OKX is one of the world’s largest cryptocurrency exchange platforms, with billions of dollars’ worth of cryptocurrency transactions occurring daily on its platform. OKX allows registered users to place orders for spot trades in over three hundred cryptocurrencies, including Bitcoin and Ethereum. OKX users can also place orders for derivative products, including futures contracts, tied to the value of Bitcoin and other cryptocurrencies.
Financial institutions that operate wholly or in substantial part in the United States must register with the U.S. Department of Treasury’s Financial Crimes Enforcement Network (“FinCEN”) as a money services business (“MSB”) and comply with federal anti-money laundering (“AML”) laws, including the Bank Secrecy Act. These laws require the filing of suspicious activity reports and the maintenance of an adequate AML program, including an effective know-your-customer (“KYC”) program. AML programs are critical to ensure that entry-points into the U.S. financial system do not become tools criminals can use to profit from illicit activity.
Since 2017, OKX has had an official policy preventing U.S. persons from transacting on its exchange. But contrary to this official policy, OKX sought out customers in the United States, including in the Southern District of New York.
From in or about 2018 through in or about at least early 2024, OKX served U.S. retail and institutional customers that engaged in over one trillion dollars’ worth of transactions through OKX. Transactions from those U.S. customers generated hundreds of millions of dollars in trading fees and profits for OKX.
Because OKX served U.S. retail and institutional customers, OKX knew it was required by U.S. law to register as a money services business with FinCEN, but OKX chose not to do so.[1] In fact, despite OKX’s official policy prohibiting U.S. persons from transacting on the exchange, OKX was fully aware that individuals in the United States could, and did, easily create and use OKX trading accounts. From OKX’s founding in approximately 2017 through approximately November 2022, OKX allowed retail customers the option to create an account, receive and transfer funds, and place trades without completing a KYC process. This meant that OKX, a large financial institution, facilitated transactions on behalf of customers that it could not identify. Further, while OKX implemented a policy blocking customers with U.S.-located IP addresses from trading or depositing assets onto OKX (the “IP Ban”), OKX knew that the IP Ban could be circumvented through cheap, widely available VPN technology. Also, through at least early 2023, OKX allowed existing accounts to continue to receive and transfer funds, and place trades, all without completing a KYC process. And until approximately early 2024, OKX also allowed customers to place trades on the exchange through third-party entities known as “non-disclosure brokers” without the third-party entity disclosing any identifying information to OKX about the customers on whose behalf the trades were placed.
Even after OKX began requiring all customers to provide some KYC information to trade, OKX employees on certain occasions advised customers how to provide false information to circumvent the company’s KYC process and official policy prohibiting U.S. customers. For example, in April 2023, an OKX employee encouraged a potential U.S. customer to open an account by providing false information about the customer’s nationality during the KYC processing, writing “I know you’re in the US, but you could just put a random country and it should go through. You just need to put Name, nationality, and ID number. You could just put United Arab Emirates and random numbers for the ID number.” At that time, OKX did not verify the information that customers provided to open an account to trade. In January 2024, the same employee wrote to another potential U.S. customer and asked if the individual had “any workaround on KYC outside of the US to make it potentially work.”
During the relevant period, OKX advertised in the United States, sponsoring the Tribeca Film Festival, for example, and used affiliate marketers based in the United States to promote the exchange. OKX also allowed existing customers to promote the exchange, and provided such customers benefits for recruiting additional users. At least one such OKX customer produced a publicly-available, step-by-step instructional video educating U.S. customers about how to register with OKX using a VPN to conceal their U.S. presence.
OKX also focused its efforts on attracting and retaining certain U.S. institutional customers, including large institutions who could provide liquidity and help OKX become one of the world’s largest cryptocurrency exchanges by making a broad range of cryptocurrencies available at competitive rates. OKX’s U.S. institutional customers were some of OKX’s largest customers, with one such firm alone generating more than a trillion dollars in spot and derivatives transactions on OKX during the relevant period. They provided significant liquidity, volume and trading fees for the platform, despite OKX’s knowing failure to register as an MSB and OKX’s “official” policy banning U.S. customers.
Until approximately May 2023, OKX did not adequately or consistently use commercially available software to monitor and detect suspicious activity, including money laundering, and OKX did not have adequate controls to determine whether either party to transactions on the exchange was potentially subject to sanctions imposed by the U.S. Treasury Department. As a result, through at least early 2024, OKX was used by numerous customers as a vehicle for laundering the proceeds of suspicious and criminal activities, including more than five billion dollars of suspicious transactions and illicit proceeds, based on a review of third-party transaction data.
In early 2024, OKX retained an external compliance consultant (the “Consultant”) to advise OKX on policies and controls reasonably designed to prevent U.S. persons from engaging in transactions on OKX’s platform through accounts held at OKX. As part of the plea agreement, OKX is continuing to retain the Consultant, at its own cost, through February 2027, and has agreed to continue to cooperate with the United States Attorney’s Office.
* * *
In addition to the guilty plea, OKX, a Seychelles-based entity, also agreed to criminally forfeit $420.3 million and pay a criminal fine of approximately $84.4 million. OKX received credit for its cooperation with the investigation and timely engaging in remedial measures, resulting in a 25% reduction off the bottom of the otherwise applicable recommended fine range.
Mr. Podolsky praised the outstanding investigative work of the FBI New York Field Office.
This matter is being handled by the Office’s Illicit Finance & Money Laundering Unit. Assistant U.S. Attorneys Christopher D. Brumwell, Eli J. Mark, and Vladislav Vainberg are in charge of the prosecution.
u.s._v._okx_information.pdf u.s._v._okx_plea_agreement_and_attachments.pdf[1] OKX has an affiliate U.S.-based cryptocurrency exchange named OKCoin USA, Inc. (“OKCoin”) which, in contrast with OKX, has registered with FinCEN as a MSB. OKCoin serves customers globally, including in the United States, and offers retail and institutional customers the ability to spot trade, including purchasing cryptocurrency using U.S. dollars. The conduct described herein that gives rise to the charge in the Information, and to which OKX pled guilty, is solely that of the unregistered MSB, Aux Cayes Fintech Co. Ltd., d/b/a “OKEx,” d/b/a “OKX,” the defendant.
Canadian Drug Traffickers Sentenced to Prison for Transporting Methamphetamine and Cocaine on Behalf of the Wolfpack AllianceRead the Press Release
Matthew Podolsky, the Acting United States Attorney for the Southern District of New York, announced today that MICHAEL HABIB, an associate of the Canadian criminal organization known as the Wolfpack Alliance, was sentenced to 17 and a half years in prison for trafficking narcotics. HABIB pled guilty on December 20, 2023, before U.S. District Judge John P. Cronan, who imposed today’s sentence. HABIB’s sentencing follows the imposition of sentences of 18 years, 17 and a half years, and four and half years on his co-defendants, SURINDER SINGH CHEEMA, BHUPINDER SINGH VIRK, and CHRISTOPHER BURGOS, on December 19, 2024, July 17, 2024, and December 16, 2024, respectively.
Acting U.S. Attorney Matthew Podolsky said: “Wolfpack and its associates have spread drugs and violence in the United States and in Canada. Michael Habib and his co-conspirators are responsible for transporting thousands of kilograms of cocaine and methamphetamine across our northern border, ordering drug-related shootings and kidnappings, and attempting to smuggle wanted international hitmen into the United States from Canada. Today’s prison sentence will help protect the public from wanton violence and dangerous narcotics, and demonstrates our resolve to root out transnational criminal organizations like Wolfpack.”
FBI Assistant Director in Charge James E. Dennehy said: “The associates of the Wolfpack Alliance have all been rightly sentenced for establishing an international drug trafficking route to assist the flow of thousands of kilograms of methamphetamine and cocaine through our country into Canada. This conspiracy caused significant amounts of dangerous drugs to enter the United States, endangering the public’s safety. The FBI will continue to dismantle and hold accountable any criminal enterprise member, regardless of their origin, which utilizes our nation as an economic foothold and throughfare for their illegal operations.”
According to the Indictment, public filings, and statements made in court proceedings:
From at least in or about February 2022 through at least in or about November 2022, HABIB, CHEEMA, VIRK, BURGOS and others conspired to distribute narcotics by shipping thousands of kilograms of methamphetamine and cocaine across the U.S. and into Canada. In or about March 2022, law enforcement seized approximately 400 kilograms of cocaine shipped by the conspirators from a warehouse in New Jersey, and approximately 96 kilograms of cocaine and 86 kilograms of methamphetamine in the vicinity of Kansas City, Kansas. In connection with their guilty pleas, HABIB admitted to conspiring to distribute at least approximately 400 kilograms of cocaine; CHEEMA admitted to conspiring to distribute at least approximately 1.3 metric tons of methamphetamine and 764 kilograms of cocaine; VIRK admitted to conspiring to distribute at least approximately 1.1 metric tons of methamphetamine and 480 kilograms of cocaine; and BURGOS admitted to conspiring to distribute at least approximately 400 kilograms of cocaine.
The defendants engaged in additional criminal activities. HABIB and BURGOS, on behalf of the Wolfpack Alliance, assisted two Wolfpack-aligned hitmen, Gene Lahrkamp and Duncan Bailey, in their attempt to escape Canada and evade Canadian law enforcement, until Lahrkamp and Bailey were killed in an accidental plane crash in Canada on or about April 30, 2022. CHEEMA, in or about the spring of 2024, subsequent to his guilty plea and while awaiting sentencing at the Metropolitan Detention Center in Brooklyn, New York, directed his confederates in the greater Toronto, Canada area to conduct shootings and issue threats of violence in connection with drug debts. VIRK was arrested in or about November 2022 in California with three unregistered “ghost” guns and approximately $487,900 in cash.
* * *
In addition to their prison terms, HABIB, 38, of Toronto, Canada; CHEEMA, 31, of Brampton, Canada; VIRK, 31, of Fresno, California; and BURGOS, 36, of Brooklyn, New York, were sentenced to five, four, four, and three years of supervised release, respectively, and were ordered to forfeit $487,900 and a 2020 Mercedes Benz AMG GT63.
Mr. Podolsky praised the outstanding investigative work of the FBI and U.S. Customs and Border Protection. Mr. Podolsky further thanked the Royal Canadian Mounted Police and Peel Ontario Regional Police for their assistance and cooperation in the investigation.
This prosecution is part of an Organized Crime Drug Enforcement Task Force (“OCDETF”) operation. OCDETF identifies, disrupts, and dismantles criminal organizations using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
This case is being handled by the Office’s Narcotics Unit. Assistant U.S. Attorneys Thomas S. Burnett, Jane Y. Chong, and Matthew R. Shahabian are in charge of the prosecution.
Rockland County Man Sentenced to over 21 Years in Prison for Distributing Fentanyl That Resulted in Six Poisonings, Including Multiple DeathsRead the Press Release
Matthew Podolsky, the Acting United States Attorney for the Southern District of New York, announced today that JUSTIN TURNICK was sentenced by U.S. District Judge Philip M. Halpern to over 21 years in prison. TURNICK previously pled guilty to conspiring to distribute fentanyl. In his plea agreement, TURNICK took responsibility for distributing fentanyl that resulted in three fatal fentanyl poisonings and three non-fatal fentanyl poisonings of teenagers and young adults between February 2020 and April 2022 in Rockland County, New York.
Acting U.S. Attorney Matthew Podolsky said: “Justin Turnick’s actions didn’t just facilitate addiction—they fueled a crisis that has claimed lives and inflicted unimaginable suffering. The career prosecutors of this Office and our partners at the Drug Enforcement Administration and in local law enforcement remain resolute in our mission to combat the fentanyl epidemic and to seek justice for those who have suffered.”
According to the allegations in the Indictment, Court filings, and statements made in Court:
TURNICK engaged in the regular distribution of narcotics to members of his community in Rockland County, New York, including his friends, partners, and acquaintances. TURNICK knowingly distributed fentanyl — a deadly and highly potent opioid — in various forms, including fentanyl that had been packaged into pills, pure fentanyl, and fentanyl-laced powder.
TURNICK distributed fentanyl that resulted in three fatal and three non-fatal poisonings:
- On or about February 3, 2020, Gustaf Olsen died at age 19 as a result of fentanyl received from TURNICK.
- On or about July 11, 2020, Jonathan Shashoua died at age 22 as a result of fentanyl received from TURNICK.
- On or about January 5, 2021, an 18-year-old girl experienced a non-fatal poisoning as a result of fentanyl received from TURNICK.
- On or about July 30, 2021, Ione Koenig experienced a non-fatal poisoning as a result of fentanyl received from TURNICK.
- On or about July 31, 2021, Ione Koenig died at age 18 as a result of fentanyl received from TURNICK.
- On or about April 19, 2022, a 23-year-old man experienced a non-fatal poisoning as a result of fentanyl received from TURNICK.
* * *
In addition to the prison sentence, TURNICK, 26, of Congers, New York, was sentenced to 5 years of supervised release.
Mr. Podolsky praised the outstanding work of the Drug Enforcement Administration, the Clarkstown Police Department, and the Rockland County Sheriff’s Office. He also thanked the Ramapo Police Department, the Westchester County Police Department, the Yonkers Police Department, the Putnam County Sherriff’s Department, and the Rockland County District Attorney’s Office for their support and assistance in this matter.
The case is being prosecuted by the Office’s White Plains Division. Assistant U.S. Attorneys Ryan W. Allison and Kathryn Wheelock are in charge of the prosecution.
Norman Gray, Founder and CEO of Biomedical Company, Sentenced for Defrauding Investors of More Than $13 MillionRead the Press Release
Matthew Podolsky, the Acting United States Attorney for the Southern District of New York, announced that NORMAN GRAY, the founder and CEO of a biomedical company (the “Biomedical Company”), who defrauded investors of over $13 million, was sentenced today by U.S. District Judge Paul A. Engelmayer to 10 years in prison. GRAY was convicted of wire fraud at trial on May 29, 2024.
Acting U.S. Attorney Matthew Podolsky said: “Norman Gray preyed upon people who wanted to invest in developing life-saving medicine for children with a rare and generally fatal disease. Gray gained his victims’ trust by lying about everything from his educational background and to his supposed access to off-shore trusts he could use to fund his company alongside the investors. He even submitted false patent applications, invented a fake mortgage company, and forged FBI background check records. Thanks to the work of the career prosecutors of this Office and our law enforcement partners, Gray has now received just punishment.”
According to the Superseding Indictment, public filings, public court proceedings, the evidence presented at trial and in connection with sentencing:
At all relevant times, GRAY was the founder and CEO of the Biomedical Company, which is headquartered in Hamden, Connecticut. GRAY presented himself to investors (including “Victim-1” and “Victim-2”) and others as a billionaire scientist and successful entrepreneur with a Ph.D. from MIT at the helm of a company he was personally funding that was potentially worth hundreds of millions of dollars. GRAY claimed to have previously created a successful medical equipment company (“Prior Company”) with over 1,000 employees, which was earning approximately $900 million in revenues before GRAY sold it to a foreign pharmaceutical company. GRAY claimed that he put the profits from the sale of the Prior Company into his offshore trust (“Offshore Trust”), which he claimed held more than $300 million, and which he was using to self-fund the Biomedical Company. In reality, GRAY did not have a Ph.D., had not created or sold a nearly billion-dollar company, did not have access to hundreds of millions of dollars to fund Biomedical Company, and, as of 2020, both he and the Biomedical Company were in significant debt.
Beginning in 2016, GRAY also claimed to employees and investors in Biomedical Company, including Victim-1 and Victim-2, and in written investment materials, that a flagship medication being developed by Biomedical Company was approved for compassionate treatment in Saudi Arabia, where it was saving the lives of two specific children who were suffering from a rare and generally fatal disease known as MVID. Victim-2 sent $200,000 to GRAY to continue funding this supposed program. GRAY submitted treatment data from the supposed program in patent applications for the flagship drug. But the program did not exist.
Based on GRAY’s misrepresentations, between 2018 and 2020, Victim-2 invested approximately $7.6 million in the Biomedical Company through wire transfers into accounts controlled by GRAY. In May 2020, at the outset of the COVID-19 pandemic, GRAY fraudulently induced Victim-2 to invest into a joint venture with GRAY to purchase personal protective equipment (“PPE”) and resell it to hospitals and universities in the United States and Spain. GRAY provided Victim-2 with fabricated purchase orders from two New York-area hospitals purporting to show that he had close to $8 million of committed sales. Victim-2 sent three wire transfers totaling $1,751,342 to GRAY’s account. Ultimately, the PPE that GRAY purchased could not be sold, because it was defective or otherwise not fit for market, and Victim-2 lost the $1.75 million supposedly invested by GRAY into the PPE project.
In or about August 2020, GRAY induced Victim-1 to send him $250,000 as a purported investment in the Biomedical Company. Rather than purchase equity for Victim-1, GRAY used nearly all of Victim-1’s $250,000 payment to repay a loan that GRAY had taken out from a tenant in the same building where the Biomedical Company is headquartered in order to make payroll. In the ensuing weeks, GRAY extracted an additional $1,217,000 from Victim-1, representing that Victim-1’s funds would be invested in deals involving the procurement of PPE for two major universities in the tristate area who committed to close to $8 million in sales in essentially the same amounts as GRAY’s prior fabricated purchase orders sent to Victim-2. Notwithstanding the losses Victim-2 had already experienced through GRAY’s venture, GRAY falsely represented to Victim-1 that his prior PPE deals had turned a 40% profit within 90 days, that he already had purchase orders in hand for PPE worth nearly $8 million, and that, therefore, the risk was “virtually zero.” In reality, over the preceding months, GRAY had accumulated a vast inventory of unsellable PPE, the purported purchase orders were recycled fakes, and GRAY did not invest Victim-1’s funds in PPE. Instead, GRAY misappropriated Victim-1’s funds, in part, to purchase himself a nearly $1 million home, a $50,000 luxury SUV, and to pay down $200,000 of his and his family’s credit card debt.
As part of his scheme to defraud Victim-1, and as a means of dispelling Victim-1’s concern that an investment with GRAY might require Victim-1 to forego the purchase of a home, GRAY offered Victim-1 a mortgage from a purported boutique mortgage company of which he was the sole investor. GRAY directed Victim-1 to a purported mortgage broker that worked for this boutique mortgage company. In reality, both the mortgage company and the mortgage broker were completely fabricated by GRAY and did not exist. To further this aspect of the fraud on Victim-1, GRAY registered an internet domain in the name of the purported mortgage company and created an email address in the name of the invented mortgage broker contemporaneously with making his false representations to Victim-1. As GRAY’s fraud began to unravel in or about early November 2020, GRAY promised to return all of Victim-1’s money. Ultimately, GRAY never returned any money to Victim-1 and, after Victim-1 asked GRAY to provide her with the purported PPE purchase orders from the two universities, she never heard from GRAY again.
Victim-2 was a board member of the Biomedical Company at the time that GRAY defrauded Victim-1. Following Victim-1’s report of GRAY’s fraud to the board in November 2020, accompanied by publicly available evidence of GRAY’s prior criminal history, GRAY reassured Victim-2 that he had no criminal history beyond driving infractions. GRAY also produced to the board a fraudulent record purportedly from the FBI disclaiming any criminal history and falsely asserting that GRAY had a “top secret” clearance status renewed on November 14, 2016. After being reassured by GRAY that Victim-1’s allegations were meritless, Victim-2 provided approximately over $2.3 million in loans separate from his over $7.5 million of Vanessa investments and $1.75 million of PPE investments.
At trial, GRAY obstructed justice by attempting to introduce into evidence a false document supposedly drafted after GRAY’s fraud on Victim-1 was complete and purporting to memorialize an agreement by Victim-1 to “convert” her PPE investment into shares of Biomedical Company.
* * *
In addition to the prison term, GRAY, 69, of Hamden, Connecticut, was sentenced to 3 years of supervised release. GRAY also was ordered to pay forfeiture in the amount of $1,467,000 and to forfeit his interest in the home and luxury vehicle discussed above. The Court also ordered restitution of $1,533,675 to Victim-1.
Mr. Podolsky praised the outstanding investigative work of the Special Agents of Homeland Security Investigations. Mr. Podolsky also thanked the New Haven Police Department, as well as law enforcement authorities in the United Kingdom and Spain and the Justice Department’s Office of International Affairs, for their assistance.
This case is being handled by the Office’s Illicit Finance and Money Laundering Unit. Assistant U.S. Attorneys Benjamin A. Gianforti, Vladislav Vainberg, and Jessica Greenwood are in charge of the prosecution.
Former CEO of Special Purpose Acquisition Company Charged with Accounting Fraud, Obstruction of Justice, and PerjuryRead the Press Release
Matthew Podolsky, the Acting United States Attorney for the Southern District of New York, and James E. Dennehy, the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today the unsealing of an Indictment charging VADIM KOMISSAROV, the former Chief Executive Officer of Trident Acquisitions Corp. (“TDAC”), a publicly traded special purpose acquisition company (“SPAC”), with engaging in a scheme to defraud TDAC investors and investors in TDAC’s successor company, Lottery.com Inc., by publicly reporting false and misleading revenue and business information. KOMISSAROV was arrested yesterday evening and will be presented this afternoon before U.S. Magistrate Judge Sarah Netburn. The case has been assigned to U.S. District Judge Alvin K. Hellerstein.
Acting U.S. Attorney Matthew Podolsky said: “As alleged, Vadim Komissarov, the former CEO of Trident Acquisitions Corp., engineered sham transactions and reported false and misleading revenue, all to ensure his SPAC merger went through and to make himself wealthy. To make matters worse, he tried to cover up his crimes by lying to the SEC under oath. This Office, and our partners at the FBI, will continue to pursue executives of public companies, including executives of SPACs, who defraud unsuspecting investors.”
FBI Assistant Director in Charge James E. Dennehy said: “Vadim Komissarov allegedly tried to secure a winning ticket by developing an elaborate scheme comprised of inflated profits, falsified transactions, and perjurious statements to sell company shares. Komissarov allegedly abused his authority as the company’s CEO to conjure a façade of success and interfere with an investigation into his suspected misconduct. The FBI will never permit any individual who attempts to unlawfully cash out at the expense of their investors’ money and trust.”
According to the allegations contained in the Indictment[1] unsealed today in Manhattan federal court:
From November 2020 through May 2022, KOMISSAROV engaged in a scheme to defraud TDAC investors and investors in TDAC’s successor company, Lottery.com Inc., by publicly reporting false and misleading revenue and business information about a prospective acquisition target and by profiting from the effect of the deception by selling shares of Lottery.com before other market participants realized the true state of the company (the “Revenue Scheme”).
The Revenue Scheme arose from an effort by KOMISSAROV to identify a suitable target for TDAC before TDAC reached a deadline to either use or return investor funds that had been raised to support an acquisition. In November 2020, KOMISSAROV settled on AutoLotto, Inc., d/b/a Lottery.com as a target for TDAC. To deceive TDAC shareholders about the nature of AutoLotto’s business, and to thereby secure their approval for TDAC’s acquisition of AutoLotto (the “Business Combination”), KOMISSAROV worked with others to improperly and misleadingly inflate AutoLotto’s revenue and to report those inflated figures to TDAC’s shareholders through public filings with the Securities and Exchange Commission (“SEC”), which KOMISSAROV signed or caused to be filed as the principal executive, financial, and accounting officer of TDAC.
The Revenue Scheme created the false appearance of revenue-generating business activity for AutoLotto and later for Lottery.com through a series of sham transactions, including a fraudulent $9 million roundtrip transaction that KOMISSAROV engineered using the alias “Vlad.”
In April 2022 and May 2022, KOMISSAROV sold almost 300,000 Lottery.com shares for more than $600,000, months before Lottery.com disclosed to investors that it had identified errors in the company’s reported revenue and available cash.
By June 2023 and August 2023, the enforcement staff of the SEC had begun to investigate TDAC and Lottery.com. After receiving a subpoena from the SEC for documents and testimony in connection with the SEC’s investigation, KOMISSAROV schemed to obstruct the SEC’s investigation. For example, during a call with two Lottery.com executives, KOMISSAROV said he wanted to “sync” his “clock[]” with them and align on a false and misleading narrative that concealed his involvement in some of the sham transactions that were part of the Revenue Scheme. KOMISSAROV warned the Lottery.com executives, “guys, you do understand, you say that I was involved with this transaction . . . . if Trident and me specifically knew about it, then I am in deep, deep, deep, deep water . . . . So, if you come out and say that I was involved, then I am in deep shit.”
KOMISSAROV also personally tried to obstruct the SEC’s investigation. On November 20, 2024, KOMISSAROV provided sworn testimony to the SEC in connection with the SEC investigation into TDAC and Lottery.com. During his testimony, KOMISSAROV gave false and misleading answers about his prior communications with the Lottery.com executives and his involvement in the $9 million fraudulent roundtrip transaction that was part of the Revenue Scheme.
* * *
KOMISSAROV, 53, of New York, New York, was charged in the Indictment with one count of conspiracy to commit securities fraud, to make false and misleading statements in proxy statements, and to make false filings with the SEC; one count of securities fraud; five counts of making false and misleading statements in proxy statements; one count of obstruction of justice; and one count of perjury. The conspiracy charge and the perjury charge each carry a maximum term of imprisonment of five years. The charges of securities fraud, making false and misleading statements in proxy statements, and obstruction of justice each carry a maximum prison term of 20 years.
The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.
Mr. Podolsky praised the outstanding work of the FBI. Mr. Podolsky also thanked the U.S. Securities and Exchange Commission for its assistance and cooperation in the investigation.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant United States Attorneys Justin V. Rodriguez and Matthew R. Shahabian are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
komissarov_signed_indictment.pdf[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the descriptions of the Indictment constitute only allegations, and every fact described should be treated as an allegation.
Crips Gang Member Charged with Ordering Murders in 2011 and 2015Read the Press Release
Matthew Podolsky, the Acting United States Attorney for the Southern District of New York, and HSI Acting Special Agent in Charge Michael Alfonso announced today the unsealing of an Indictment charging Rubin Moye, a/k/a “Nut,” with ordering murders in 2011 and 2015. As alleged, MOYE, a member of the Santana Block Crips set that operated around 2000 Valentine Avenue in the Bronx, ordered the murders of rival gang members or associates, leading fellow Crips to shoot and kill Phillip Richards on August 4, 2011, and Michelle Cox on March 4, 2015, neither of whom was a member of the rival gang. In between those murders, MOYE himself shot a gang rival’s mother. MOYE, who was previously detained in federal custody on separate charges, will be presented today before U.S. Magistrate Judge Sarah Netburn. The case is assigned to U.S. District Judge J. Paul Oetken.
Acting U.S. Attorney Matthew Podolsky said: “Rubin Moye allegedly terrorized his community for years, engaging in gang warfare on the streets and in apartment buildings in the Bronx. As alleged in the Indictment, Moye ordered fellow Crips gang members to murder rivals resulting in the shooting deaths of two people, and he personally attempted to kill a rival’s mother by shooting her in the head. These vicious crimes occurred years ago, but this Office and our partners at HSI and the NYPD do not forget the victims of violent crime, and we will not stop pursuing justice for them.”
Acting Special Agent in Charge Michael Alfonso said: “The defendant’s indictment for the 2011 and 2015 murders of innocent victims underscores HSI New York’s commitment to its enduring mission: the safety of our public regardless of how much time has passed. Together with our law enforcement partners, we refuse to let lawlessness run unchecked on the streets of New York City. I commend HSI’s Violent Gang Task Force, together with the NYPD and the Southern District of New York, for its unwavering pursuit of justice on behalf of our communities.”
According to the allegations in the Indictment,1 MOYE was a member of the Santana Block Crips set that sold drugs and engaged in violent crimes around 2000 Valentine Avenue in the Bronx—a building known as “Two Stacks.” This Crips set engaged in racketeering activity to enrich its members, preserve and protect its power, and promote and enhance its activities in that neighborhood, and they did so through drug sales, firearms offenses, robberies, and acts involving murder. On August 4, 2011, MOYE directed a co-conspirator (“CC-1”) to kill a rival gang member (“Rival-1”) or someone associated with that rival gang member, and in the course of trying to do so, the co-conspirator shot and killed Phillip Richards, an innocent bystander, near East 181st and Lafontaine Avenue in the Bronx. On November 19, 2011, MOYE shot Rival-1’s mother in the chest and head in retaliation for Rival-1’s alleged murder of MOYE’s brother, who was a leader of MOYE’s Crips set. Rival-1’s mother survived the shooting. Additionally, on March 4, 2015, MOYE directed CC-1 and a second co-conspirator (“CC-2”) to find and kill someone associated with Rival-1. CC-1 and CC-2 then located Michelle Cox, a/k/a “Destiny,” who was a friend of Rival-1, in the stairwell of an apartment building, and CC-2 shot her in the head, killing her.
* * *
MOYE, 42, of the Bronx, New York, is charged with two counts of murder in aid of racketeering, which carries a mandatory minimum sentence of life in prison; two counts of murder while engaged in a narcotics conspiracy, which carries a mandatory minimum sentence of twenty years’ imprisonment and a maximum sentence of life; and two counts of murder through the use of a firearm, which carries a maximum sentence of life.
The statutory minimum and maximum sentences are prescribed by Congress and provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Podolsky praised the outstanding work of the Homeland Security Investigations’ Violent Gangs Task Force and the New York City Police Department’s Bronx Violent Crimes Squad.
The case is being handled by the Office’s Violent and Organized Crime Unit. Assistant U.S. Attorneys Frank Balsamello, Matthew Hellman, Michael Herman, and Ashley Nicolas are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
moye_indictment.pdf1 As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Recidivist Drug Trafficker Sentenced to 12 Years in Prison for Causing Fatal Fentanyl Poisoning of 66-Year-Old VictimRead the Press Release
Matthew Podolsky, the Acting United States Attorney for the Southern District of New York, announced that RAUL SILVA was sentenced today by U.S. District Judge P. Kevin Castel to 12 years in prison for selling thousands of doses of deadly narcotics, including fentanyl, acetyl fentanyl, and heroin, the use of which resulted in the July 2019 death of a 66-year-old woman (the “Victim”), to whom SILVA had sold drugs for years.
Acting U.S. Attorney Matthew Podolsky said: “Raul Silva made a career of endangering lives by distributing illegal narcotics, some of which were laced with deadly fentanyl and acetyl. Silva’s disregard for others eventually caused the tragic and untimely death of a 66-year-old woman, who overdosed on a laced dose supplied by Silva. I thank our career prosecutors and agency partners for their determination and vigilance in holding Silva, and dealers like him, accountable.”
As reflected in the Indictment, court filings, the evidence presented in court, and the Court’s determinations at the sentencing hearing:
Between February 2019 and July 2019, SILVA and his co-defendant conspired to sell to an undercover New York City Police Department (“NYPD”) officer, on eight separate occasions, more than 4,000 glassines containing varying combinations of fentanyl, acetyl fentanyl, heroin, and other drugs. These repeated drug sales followed years of narcotics trafficking and other criminal activity by SILVA, which resulted in 14 prior criminal convictions, including 10 prior narcotics convictions dating back to 1987.
In addition, SILVA was the longtime drug supplier of the Victim, a 66-year-old woman residing in the Chelsea area of Manhattan. On July 11, 2019, SILVA met the Victim near her residence to sell her several glassines containing fentanyl, acetyl fentanyl, and heroin. The Victim died in her apartment shortly thereafter, after consuming the narcotics sold to her by SILVA. The Victim’s body was discovered two days later by her daughter, who was completing her medical residency in Virginia at the time, and who traveled to the Victim’s apartment on the evening of July 13, 2019, after being repeatedly unable to reach her mother.
* * *
In addition to the prison term, SILVA, 55, of New York, New York, was sentenced to five years of supervised release.
Mr. Podolsky praised the outstanding investigative work of the NYPD.
The prosecution of this case is being handled by the Office’s Narcotics Unit. Assistant United States Attorneys Jonathan L. Bodansky and Matthew Weinberg are in charge of the prosecution, with assistance from Paralegal Specialist Owen Foley.
Middle School Teacher Charged with Possession of Child PornographyRead the Press Release
Matthew Podolsky, the Acting United States Attorney for the Southern District of New York, and Anatasia Coleman, the Special Commissioner for Investigation for the Office of the Special Commissioner of Investigation for the NYC School District ("SCI"), announced today the arrest of ROSS LANVIN for possession of child pornography. LANVIN is charged with possessing hundreds of images and videos of child pornography that depict children ranging from approximately 3 to 4 years old to pre-pubescent children engaging in sexually explicit conduct. LANVIN was presented before U.S. Magistrate Judge Stewart D. Aaron in Manhattan federal court.
Acting U.S. Attorney Matthew Podolsky said: “As alleged, Ross Lanvin, who had close contact with students as a teacher at a public school in Manhattan, possessed hundreds of images and videos of child pornography. Together with our partners at the NYPD and Office of the Special Commissioner of Investigations for the NYC School District, we will continue to work to root out those who possess child pornography, especially when those individuals work in positions that give them access to children—some of the most vulnerable members of our community. Our investigation into Lanvin is ongoing, and we encourage anyone with information to contact Wendy Olsen-Clancy, the Victim Witness Coordinator at the United States Attorney’s Office of the Southern District of New York, at 866-874-8900 or [email protected].”
SCI Special Commissioner for Investigation Anatasia Coleman said: "SCI is grateful for the efforts of its investigators and the opportunity to work alongside all of our partners at the DOJ and NYPD to root out child sex abuse wherever it may occur. This type of crime, as alleged, is always troubling, but when it involves someone entrusted with the daily enrichment of our children, it makes its investigation and prosecution even more urgent."
According to the allegations contained in the Complaint:[1]
LANVIN is currently a math teacher at a public middle school located in Manhattan, New York (“School-1”). He was employed by the New York City Department of Education from in or about 2006 through in or about 2013, and again beginning in or about 2016.
From at least in or about September 2021 through in or about December 2024, LANVIN possessed hundreds of images and videos constituting child pornography on a Google account held under a fake name. On or about December 20, 2024, Google terminated access to this account upon finding that it contained suspected child pornography.
On February 13, 2025, law enforcement executed a search warrant at LANVIN’s Manhattan apartment and found child pornography on at least one of LANVIN’s electronic devices.
* * *
LANVIN, 41, of New York, New York, is charged with two counts of possession of child pornography, including images and videos of prepubescent minors and minors who had not attained 12 years of age, which carries a maximum sentence of 20 years in prison.
The statutory maximum sentence is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.
Mr. Podolsky praised the outstanding investigative work of the New York City Police Department Special Investigations Unit, Computer Crimes Squad, SCI, as well as the Task Force Officers and Investigative Analysts of the U.S. Attorney’s Office for the Southern District of New York.
This case is being handled by the Office’s General Crimes Unit. Assistant United States Attorney Lauren E. Phillips is in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the texts of the Complaint and the description of the Complaint set forth herein constitute only allegations and every fact described should be treated as an allegation.
Criminal Defense Attorney Indicted for Bribery SchemeRead the Press Release
Matthew Podolsky, the Acting United States Attorney for the Southern District of New York, and James E. Dennehy, the Assistant Director in Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), announced today the unsealing of an Indictment charging DAVID MACEY, a criminal defense attorney based in Florida, with bribery of a public official, conspiracy to bribe a public official, honest services wire fraud, and conspiracy to commit honest services wire fraud, for a scheme in which MACEY paid tens of thousands of dollars to a senior Special Agent (“Agent-1”) with the Drug Enforcement Administration (“DEA”), in exchange for Agent-1 providing sensitive law enforcement information to MACEY to assist MACEY in recruiting and representing clients. MACEY will be presented before Magistrate Judge Stewart D. Aaron later today. The case has been assigned to U.S. District Judge Jennifer H. Reardon.
Acting U.S. Attorney Matthew Podolsky said: “As alleged, David Macey provided secret payments to a senior DEA special agent in exchange for access to sensitive information that Macey could use to enrich himself, including information regarding sealed indictments and impending arrests. This prosecution underscores this Office’s commitment to combatting bribery – especially bribery that compromises law enforcement’s duty to protect and serve the public.”
FBI Assistant Director in Charge James E. Dennehy said: “David Macey, a criminal defense attorney, allegedly bribed a senior federal agent with tens of thousands of dollars for confidential information from law enforcement databases. Macey allegedly breached an expectation of privacy and received unlawful advantageous details to unjustly benefit his practice. The FBI will never tolerate those who engage in corrupt practices with public officials and cheat the investigative nature of our criminal justice system.”
According to the Indictment unsealed today in Manhattan federal court:[1]
MACEY is a criminal defense attorney based in Coral Gables, Florida. From in or about October 2018 through in or about January 2020, MACEY and a private investigator that worked with MACEY (“Investigator-1”) paid bribes to Agent-1 with the DEA in return for Agent-1 providing non-public, confidential DEA information in breach of Agent-1’s official duties. MACEY and Investigator-1 paid the bribes to Agent-1 using methods designed to conceal MACEY’s own connection to the bribe payments, including by using EDWIN PAGAN III, a former DEA Task Force Officer, as an intermediary. In return for the bribe payments, Agent-1 provided nonpublic, confidential DEA information to MACEY and Investigator-1 so that MACEY and Investigator-1 could use that information in furtherance of MACEY’s legal practice, including to recruit and represent criminal defendants.
Among the benefits paid by MACEY and Investigator-1 to Agent-1 were a $2,500 payment made in November 2018, shortly after Investigator-1’s retirement from the DEA, which was funneled to Agent-1 through a company owned by a close family member of Agent-1. At the same time that this payment was made, MACEY and Investigator-1 began asking Agent-1 to run searches in the DEA’s Narcotics and Dangerous Drugs Information System (“NADDIS”), a database that contains confidential information about individuals who are or have been under investigation by the DEA. Following that initial payment, MACEY and Investigator-1 continued to provide benefits to Agent-1, including $50,000 that was paid to Agent-1 for Agent-1’s purchase of a condominium in January 2019 and tens of thousands of dollars that were funneled from Investigator-1 through a company created by PAGAN.
In return, Agent-1 continued to provide nonpublic DEA information to MACEY and Investigator-1, including information about the timing of forthcoming indictments, information about DEA arrest plans of particular targets, and non-public information about arrests of criminal defendants. Agent-1 also continued to search NADDIS for names of particular individuals requested by MACEY and Investigator-1, doing so on dozens of occasions during the scheme. In addition, during the scheme, MACEY and Agent-1 discussed Agent-1’s efforts to influence subjects of DEA investigations to retain MACEY as their attorney.
* * *
MACEY, 54, of Coral Gables, Florida, and PAGAN, 52, of Miami, Florida, are each charged with one count of conspiracy to commit bribery, which carries a maximum term of five years in prison, and one count of receiving or paying a bribe, respectively, which carries a maximum term of 15 years in prison. MACEY and PAGAN are also charged with one count of conspiracy to commit honest services wire fraud and one count of honest services wire fraud, each of which counts carries a maximum term of 20 years in prison. PAGAN is also charged with four counts of perjury in connection with false testimony that he provided in a related criminal trial in November 2023. The charges against PAGAN were unsealed in November 2024.
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Podolsky praised the outstanding investigative work of the FBI and the Department of Justice Office of the Inspector General, and thanked the DEA’s Office of Professional Responsibility for its support in this matter.
The prosecution is being handled by the Office’s Illicit Finance and Money Laundering Unit. Assistant U.S. Attorneys Emily Deininger and Mat Andrews are in charge of the prosecution.
[1] The entirety of the text of the Indictment, and the description of the Indictment set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Real Estate Executive Charged in Thirty-Million-Dollar Bank Fraud SchemeRead the Press Release
Danielle Sassoon, the United States Attorney for the Southern District of New York, and James E. Dennehy, the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today the arrest of KEVIN FENG GAO. The Indictment unsealed today charges GAO with committing bank fraud as part of a scheme to steal $30 million intended as an investment in Manhattan real estate. GAO will be presented today before U.S. Magistrate Judge Stewart D. Aaron.
U.S. Attorney Danielle Sassoon said: “As alleged, Kevin Gao orchestrated a complex scheme to create a fraudulent, unauthorized bank account and use the account to steal $30 million from a real estate investor. Bank fraud schemes undermine the integrity of our financial system by corrupting it for criminal purposes, and I commend the FBI and our dedicated team of prosecutors for their outstanding work in uncovering this massive fraud.”
FBI Assistant Director in Charge James E. Dennehy said: “Kevin Gao allegedly opened an unauthorized corporate bank account to intercept and steal a $30 million investment. This alleged establishment of an illicit bank account wrongfully diverted a significant sum from its intended use. The FBI remains dedicated to apprehending all individuals who implement deceitful measures to steal what is not owed to them.”
According to allegations in the Indictment:[1]
GAO carried out a fraudulent scheme to open and use an unauthorized bank account in the name of a company (the “Management Company”) that managed a real estate development project in Manhattan (the “Real Estate Project”). GAO was an executive at another company that participated in a joint venture to develop the Real Estate Project, but GAO had no authorization from the Management Company to open the account in its name (the “Fraudulent Account”).
When GAO applied to open the Fraudulent Account, GAO made false representations to employees of an FDIC-insured bank (the “Bank”), including falsely representing that GAO was opening the Fraudulent Account with the Management Company’s permission. Additionally, when a representative of the Bank asked GAO to provide a copy of the Management Company’s operating agreement, GAO provided a fraudulent document rather than the actual operating agreement.
After GAO created the Fraudulent Account, an investment company agreed to invest $30 million in the Real Estate Development managed by the Management Company. But the investment company transferred its $30 million into the Fraudulent Account created by GAO rather than a legitimate account actually held and controlled by the Management Company. GAO then dispersed the $30 million to several accounts under the control of GAO and his co-conspirators.
* * *
GAO, 37, of Queens, New York is charged with one count of bank fraud, which carries a maximum sentence of 30 years in prison.
The maximum potential sentence in this case is prescribed by Congress and provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.
Ms. Sassoon praised the outstanding work of the FBI.
The case is being handled by the Office’s Illicit Finance and Money Laundering Unit. Assistant U.S. Attorneys Christopher Brumwell and Maggie Lynaugh are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the texts of the Indictment and the description of the Indictment set forth herein constitute only allegations and every fact described should be treated as an allegation.
New York Man Indicted for Role in Estranged Husband’s Murder in BrazilRead the Press Release
A New York man was arrested and charged in a superseding indictment unsealed today in the Southern District of New York for hiring someone to kill his estranged husband, who was murdered in Rio de Janeiro in January 2024. Sikkema made his initial court appearance on the superseding indictment today in the Southern District of New York.
According to court documents, beginning in 2023, Daniel Sikkema, 54, of New York City, offered another individual (CC-1) money in exchange for CC-1 killing Sikkema’s estranged husband, with whom Sikkema was involved in contentious divorce proceedings. The victim, who was a U.S. citizen, had amassed a multi-million-dollar estate and often traveled to Rio de Janeiro where he maintained property. In advance of the victim’s murder, Sikkema sent CC-1 money using a stolen identity and intermediaries in an effort to conceal the source of the payments.
The victim was murdered by CC-1 on Jan. 14, 2024.
Sikkema is charged with one count of conspiracy to commit a murder-for-hire, one count of murder-for-hire, one count of conspiracy to murder a person in a foreign county, and one count of passport fraud. If convicted, he faces a mandatory penalty of life in prison or death. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Supervisory Official Antoinette T. Bacon of the Justice Department’s Criminal Division, U.S. Attorney Danielle R. Sassoon for the Southern District of New York, and Assistant Director in Charge James E. Dennehy of the FBI New York Field Office made the announcement.
The FBI investigated the case.
Trial Attorney Chelsea Schinnour of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorneys Meredith Foster and Remy Grosbard for the Southern District of New York are prosecuting the case.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Manhattan Man Charged with Murder-For-Hire Plot Resulting in the Death of His Husband in BrazilRead the Press Release
Danielle R. Sassoon, the United States Attorney for the Southern District of New York; Antoinette T. Bacon, the Supervisory Official for the U.S. Justice Department’s Criminal Division; and James E. Dennehy, the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today the filing of charges against DANIEL SIKKEMA in connection with his role in a murder-for-hire plot that resulted in the death of his husband in Rio de Janeiro, Brazil. The charges are contained in a Superseding Indictment unsealed today in the U.S. District Court for the Southern District of New York. SIKKEMA was previously charged in the Southern District of New York for passport fraud. The case is pending before U.S. District Judge Edgardo Ramos.
U.S. Attorney Danielle R. Sassoon said: “As alleged, Daniel Sikkema and his co-conspirator planned and carried out a cold-blooded plot to murder Sikkema’s husband, a United States citizen, in Brazil. This Office will doggedly pursue justice against those who murder United States citizens, whether at home or abroad.”
FBI Assistant Director in Charge James E. Dennehy said: “In the midst of a tense divorce, Daniel Sikkema allegedly financed the premature death of his estranged husband. The defendant allegedly hired a hitman to facilitate the international murder of his husband, and attempted to conceal his involvement in this callous plan. The FBI will continue to vigorously investigate any individual who selfishly and mercilessly orders the end to another's life, regardless of where the crime may occur.”
According to the allegations in the Superseding Indictment:[1]
In 2023, SIKKEMA agreed with another individual (“CC-1”) that SIKKEMA would pay CC-1 to kill SIKKEMA’s estranged husband (the “Victim”) in Brazil. At that time, SIKKEMA and the Victim were engaged in contentious divorce proceedings and the Victim regularly traveled to Brazil and owned property in Rio de Janeiro, Brazil. To facilitate the murder-for-hire plot, SIKKEMA, a U.S. and Cuban citizen, sent multiple payments to CC-1 and CC-1’s romantic partner in Cuba. SIKKEMA also concealed the source of each of these payments by using either a stolen identity or an intermediary to send them.
On January 14, 2024, CC-1 murdered the Victim in Rio de Janeiro, Brazil. In the days that followed, SIKKEMA and CC-1 continued to communicate and SIKKEMA arranged for a payment of approximately $5,000 to be made to CC-1 and promised to make an additional payment at a later date.
On January 18, 2024, CC-1 was arrested by Brazilian law enforcement for his involvement in the commission of the Victim’s murder.
* * *
SIKKEMA, 54, of New York, New York, is charged with one count of murder-for-hire conspiracy resulting in death, one count of murder-for-hire resulting in death, one count of conspiracy to murder and maim a person in a foreign country, and one count of passport fraud. If convicted, he faces a mandatory penalty of life in prison or death.
The maximum potential sentences in this case are prescribed by Congress and provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Ms. Sassoon praised the outstanding investigative work of the FBI New York Field Office.
The case is being handled by the Office’s General Crimes Unit. Assistant U.S. Attorney Meredith C. Foster and Remy Grosbard for the Southern District of New York are in charge of the prosecution with assistance from Trial Attorney Chelsea Schinnour of the Criminal Division’s Human Rights and Special Prosecutions Section.
The charges contained in the Superseding Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Superseding Indictment and the description of the Superseding Indictment set forth herein constitute only allegations, and every fact descried therein should be treated as an allegation.
Four Defendants Charged with Cyberstalking, Kidnapping, and Murder in Parking Lot of Bronx Shopping CenterRead the Press Release
Danielle R. Sassoon, the United States Attorney for the Southern District of New York; Frank A. Tarentino, the Special Agent in Charge for the New York Division of the Drug Enforcement Administration (“DEA”); and Jessica S. Tisch, the Commissioner of the New York City Police Department (“NYPD”), announced today the unsealing of a Superseding Indictment in Manhattan federal court charging IVAN COLLADO; PATRICIA VILLALBA, a/k/a “Patty,” a/k/a “Sweetz”; ARECIO COLLADO; and JERRY VARGAS, a/k/a “Peligro,” with, among other things, cyberstalking resulting in death, murder through the use of a firearm, conspiracy to commit kidnapping resulting in death, and narcotics conspiracy in connection with the stalking and murder of Raymond Resto, a/k/a “Sugar Hill Tone” on November 26, 2023, in the Bronx, New York. IVAN COLLADO was previously arrested and charged with kidnapping conspiracy and attempted kidnapping resulting in death on February 15, 2024, when he was ordered detained. VILLALBA, ARECIO COLLADO, and VARGAS were arrested yesterday and will be presented today before U.S. Magistrate Judge Ona T. Wang. The case is assigned to U.S. District Judge J. Paul Oetken.
U.S. Attorney Danielle R. Sassoon said: “As alleged, these defendants carried out a sophisticated and brazen scheme to stalk, kidnap, and kill Raymond Resto over a drug debt. They murdered Resto in front of his wife in the parking lot of the Throggs Neck Shopping Center in the Bronx. This Office’s commitment to investigate such callous violence is unwavering and we will not relent in our aggressive pursuit of justice against violent criminals.”
DEA Special Agent in Charge Frank A. Tarentino said: “Drug trafficking is a dangerous and illegal business, often entangled with violent and deadly consequences. These individuals, who participated in the cyberstalking, attempted kidnapping, and murder of Mr. Resto, chose to use violence and intimidation to further their criminal enterprise. The unsealing of this Superseding Indictment is a result of the partnership DEA New York has with our law enforcement partners in keeping our communities safe and making sure those responsible for these types of violent crimes face consequences for their actions.”
As alleged in the charging documents in the case and in court documents:[1]
Between at least in or around November 2023 through at least in or about February 2024, IVAN COLLADO, VILLALBA, and ARECIO COLLADO participated in a conspiracy to distribute large quantities of powder cocaine in New York City and elsewhere. As part of this conspiracy, a particular drug dealer (“CC-1”) who was assisted by Resto, obtained kilograms of cocaine on consignment from IVAN COLLADO, VILLALBA, and ARECIO COLLADO, but CC-1 was unable to repay the debt owed for the cocaine.
In response, IVAN COLLADO, together with ARECIO COLLADO and VILLALBA, harassed and intimidated CC-1, including through threats of violence, in an attempt to secure repayment and identify Resto and CC-1’s customers. IVAN COLLADO, VILLALBA, ARECIO COLLADO, and VARGAS also took steps to locate and place Resto under surveillance in advance of his murder, including through the use of a GPS tracking device installed on Resto’s car.
On or about November 26, 2023, Resto was in the parking lot of the Throggs Neck Shopping Center in the Bronx with his wife when a BMW pulled in front of Resto and his wife, blocking their path to exit. Three gunmen attempted to force Resto into the BMW. During the kidnapping, one of the gunmen began shooting at Resto at close range. Resto struggled to escape while another kidnapper also opened fire. Resto was shot at least four times and was later pronounced dead at a local hospital. Resto was 49 years old.
Following the murder, IVAN COLLADO, ARECIO COLLADO, and VILLALBA redoubled their efforts to stalk, intimidate, and harass CC-1 and CC-1’s family.
If you believe that you have additional information about this murder, please contact the U.S. Attorney’s Office for the Southern District of New York at 1-866-874-8900, and reference this case.
* * *
A chart containing the names of the defendants, the charges against them, and the associated penalties is set forth below.
The statutory maximum and minimum sentences are prescribed by Congress and are provided here for informational purposes only, as any sentence of the defendant will be determined by the judge.
Ms. Sassoon praised the outstanding investigative work of the DEA Task Force, which is comprised of members of the DEA, NYPD, and New York State Police, as well as the NYPD’s Bronx Homicide Squad. Ms. Sassoon also thanked the New York/New Jersey High Intensity Drug Trafficking Area Intelligence Analysts for their support and assistance in this matter.
The case is being prosecuted by the Office’s Violent and Organized Crime Unit. Assistant U.S. Attorneys Ashley C. Nicolas, Joseph H. Rosenberg, and Courtney L. Heavey are in charge of the prosecution, with assistance from investigative analyst Koren Augustin and paralegal specialist Chanel-Ashley Foster.
The charges contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
COUNT
CHARGE
DEFENDANTS
MAX. PENALTIES
1Narcotics Conspiracy
21 U.S.C. § 846
IVAN COLLADO,
PATRICIA VILLALBA,
a/k/a “Patty,”
a/k/a “Sweetz,”
ARECIO COLLADO
Life in prison
Mandatory minimum 10 years in prison
2Cyberstalking Resulting in Death
18 U.S.C. §§ 2261A(2)(A) and (B), 2261(b)(1), and 2
IVAN COLLADO,
PATRICIA VILLALBA,
a/k/a “Sweetz,”
ARECIO COLLADO,
JERRY VARGAS,
a/k/a “Peligro”
Life in prison3Conspiracy to Commit Kidnapping Resulting in Death
18 U.S.C. § 1201(c)
IVAN COLLADO,
PATRICIA VILLALBA,
a/k/a “Patty,”
a/k/a “Sweetz,”
ARECIO COLLADO,
JERRY VARGAS,
a/k/a “Peligro”
Life in prison4Firearms Use, Carrying, and Possession
18 U.S.C. § 924(c) and 2
IVAN COLLADO,
PATRICIA VILLALBA,
a/k/a “Patty,”
a/k/a “Sweetz,”
ARECIO COLLADO,
JERRY VARGAS,
a/k/a “Peligro”
Life in prison
Mandatory minimum consecutive sentence of 10 years in prison
5Murder Through the Use of a Firearm
18 U.S.C. § 924(j)
IVAN COLLADO,
PATRICIA VILLALBA,
a/k/a “Patty,”
a/k/a “Sweetz,”
ARECIO COLLADO,
JERRY VARGAS,
a/k/a “Peligro”
Life in prison or death6Cyberstalking With Use of a Dangerous Weapon
18 U.S.C. §§ 2261A(2)(A) and (B), 2261(b)(3), and 2
IVAN COLLADO,
PATRICIA VILLALBA,
a/k/a “Patty,”
a/k/a “Sweetz,”
ARECIO COLLADO,
JERRY VARGAS,
a/k/a “Peligro”
10 years in prison7False Statements
18 U.S.C. § 1001
PATRICIA VILLALBA,
a/k/a “Patty,”
a/k/a “Sweetz,”
Five years in prison8False Statements
18 U.S.C. § 1001
PATRICIA VILLALBA,
a/k/a “Patty,”
a/k/a “Sweetz”
Five years in prison9False Statements
18 U.S.C. § 1001
IVAN COLLADOFive years in prison
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth herein constitute only allegations, and every fact descried therein should be treated as an allegation.
Former Professor Sentenced to 97 Months in Prison in Connection with Human Smuggling and Sex CrimesRead the Press Release
Danielle R. Sassoon, the United States Attorney for the Southern District of New York, announced that JORGE ALBERTO RAMOS was sentenced today to 97 months in prison for smuggling three female victims from El Salvador to the U.S., where he sexually abused them, and possession of child pornography. RAMOS’s sentence was imposed by U.S. District Judge John G. Koeltl, who also presided over his guilty plea.
U.S. Attorney Danielle R. Sassoon said: “Today, Jorge Alberto Ramos was held to account for his horrific exploitation of women he smuggled into the United States and sexually abused over the course of a decade. We thank and commend the courageous women who came forward to law enforcement. Ramos’s sentencing is a reminder that the Southern District of New York will work tirelessly to protect vulnerable victims from abuse.”
According to the Indictment, the Information, and statements made in related court proceedings:
From at least in or about 2013 and in or about 2023, RAMOS smuggled three victims from El Salvador to the Bronx, New York, where he raped, sexually assaulted, and sexually abused them. RAMOS groomed at least three women (“Victim-1,” “Victim-2,” and “Victim-3,” and together, the “Victims”) by, among other things, expressing concern for them and their families and by sending them gifts and money. RAMOS then arranged for each of the Victims to be smuggled from El Salvador into the U.S., including by paying fees for smugglers (or “coyotes”) to transport the Victims across the southern U.S. border.
Over the course of a decade, each of the Victims was smuggled into the U.S. and transported to New York. RAMOS then brought each of the Victims, respectively and at different times, to his residence in the Bronx (the “Ramos Residence”). Once at the Ramos Residence, RAMOS raped and sexually assaulted the Victims. In or about 2016, RAMOS raped and sexually assaulted Victim-1 on the first day he brought Victim-1 to the Ramos Residence and then continued to do so for several weeks until Victim-1 fled from RAMOS. In or about 2017, RAMOS raped and sexually assaulted Victim-2 on the first day he brought Victim-2 to the Ramos Residence and continued to do so for approximately one month until Victim-2 fled from RAMOS. Between in or about 2013 and in or about 2014, RAMOS raped and sexually assaulted Victim-3 on at least three occasions after bringing Victim-3 to the Ramos Residence. While the Victims stayed at the Ramos Residence, RAMOS attempted to control the Victims by, among other things, ordering the Victims to stay inside the Ramos Residence, attempting to isolate the Victims from other people, and threatening to report the Victims to immigration officials for deportation back to El Salvador.
After RAMOS was arrested, law enforcement agents seized a desktop computer from the Ramos Residence that was powered on at the time of the search. A forensic analysis of the computer led to the discovery of multiple photographs and videos containing known child pornography.
* * *
In addition to the prison term, RAMOS, 45, of the Bronx, New York, was sentenced to five years of supervised release.
Ms. Sassoon praised the outstanding investigative work of U.S. Department of Homeland Security – Homeland Security Investigations and the New York City Police Department.
This case is being handled by the Office’s Civil Rights Unit in the Criminal Division and the Violent and Organized Crime Unit. Assistant U.S. Attorneys Elizabeth A. Espinosa, Emily A. Johnson, and Jane Kim are in charge of the prosecution.
Civil Forfeiture Action Filed in Federal Court Against Bronx Residence Used as Stash House for Firearms and Drug TraffickingRead the Press Release
Danielle R. Sassoon, the United States Attorney for the Southern District of New York; Bryan Miller, the Special Agent in Charge of the New York Field Division for the Bureau of Alcohol, Tobacco, Firearms and Explosives (“ATF”); and Jessica S. Tisch, the Commissioner of the New York City Police Department (“NYPD”), announced today the filing of a civil forfeiture Complaint against a Bronx residence located at 3267 Decatur Avenue in the Bronx, New York. The Complaint alleges that the residence was used by members of the “Drilly Gang” as a stash house for drug trafficking and firearms.
U.S. Attorney Danielle R. Sassoon said: “As alleged, 3267 Decatur Avenue—a Bronx residence located steps away from an elementary school—was used by members of a gang as a stash house for drugs and firearms. This civil forfeiture action seeking to seize the residence demonstrates that we will use all the tools available to protect the streets of this city. Together with our law enforcement partners, we remain committed to the fight against gun violence and drug trafficking in our community.”
ATF Special Agent in Charge Bryan Miller said: “Illicit drug trafficking destroys lives and fuels violence. Taking over a home, for the purpose of selling illegal drugs next to a school, while boasting about it on social media, demonstrates a blatant disregard for the safety of our communities. The ATF / NYPD Joint Firearms Task Force remains committed to dismantling criminal networks and protecting innocent people from the tragic consequences of violent crime. No one should have to live or work next to an illegal narcotics operation run by armed criminals. We will remain relentless in our efforts to keep our streets safe. I commend the dedication and hard work of the men and women of the Joint Firearms Task Force, NYPD 52nd Precinct, and SDNY for their efforts in this case.”
According to the allegations in the Complaint filed in Manhattan federal court today and other court filings: [1]
Since in or about April 2024, law enforcement agents with the ATF and the NYPD have been conducting an investigation into 3267 Decatur Avenue in the Bronx, New York, including members of a group known as the “Drilly Gang” that used 3267 Decatur Avenue as a stash house for drug trafficking and firearms. The residence at 3267 Decatur Avenue is located steps away from an elementary school in the Norwood neighborhood of the Bronx. Members of the Drilly Gang were using 3267 Decatur Avenue as a headquarter of operations, including as a location to film rap videos in furtherance of the Drilly Gang, which included depictions of drugs and weapons. Members of the Drilly Gang also posted on social media photographs and videos depicting their involvement in the sale of drugs and possession of firearms, as depicted below:
On or about November 4, 2024, law enforcement officers executed a search warrant at 3267 Decatur Avenue and recovered, among other things: a pistol magazine; 177.73 grams of cocaine; 33 grams of methamphetamine; 38 grams of fentanyl; 65 grams of psilocybin mushrooms; and 240 grams of marijuana. Investigators also found drug packaging materials, which were designed to make the drugs look like candy (i.e., Welch's Fruit Snacks, Skittles, Peanut Buddy Bars, etc.) and approximately $1700 in U.S. currency. Depicted below are some of the items seized from 3267 Decatur Avenue:
* * *
Ms. Sassoon praised the outstanding investigative work of the ATF and the NYPD.
This case is being handled by the Office’s Violent and Organized Crime Unit and Illicit Finance and Money Laundering Unit. Assistant U.S. Attorneys Andrew K. Chan and Frank J. Balsamello are in charge of the prosecution.
[1] As the introductory phrase signifies, the Complaint, and the description of the Complaint set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Nurse Practitioner Sentenced to Five Years in Prison for $11.2 Million Disability Loan Fraud SchemeRead the Press Release
Danielle R. Sassoon, the United States Attorney for the Southern District of New York, announced that CATHERINE SEEMER, a nurse practitioner who stole the identities of 12 medical doctors and orchestrated an $11.2 million disability loan fraud scheme, was sentenced today by U.S. District Judge Cathy Seibel to five years in prison.
U.S. Attorney Danielle R. Sassoon said: “Today, Catherine Seemer has been held accountable for defrauding a federal loan forgiveness program created to help ease the financial burden of those who suffer from permanent physical or mental disabilities, including military veterans who endure service-related disabilities. Seemer used the stolen identities of a dozen medical doctors to falsify disabilities and cause more than $11.2 million in loans to be fraudulently discharged. This Office remains dedicated to rooting out fraud and abuse of taxpayer-funded government programs.”
According to the allegations contained in the Complaint, Information, and statements made in court:
From June 2017 through March 2022, SEEMER orchestrated a scheme to cause the fraudulent discharge of millions of dollars’ worth of student loans for borrowers who did not qualify for relief under the federal Total and Permanent Disability Discharge Program and its private analogue. As part of the scheme, SEEMER deceived over 125 borrowers into believing they qualified for various forms of student loan relief and charged them fees to facilitate their loan discharge process. She then used the personal identifying information of the unsuspecting borrowers to submit fraudulent applications for student loan discharge on the basis of non-existent permanent physical and mental disabilities. In support of these applications, SEEMER used the stolen identities, medical license numbers, and forged signatures of over a dozen medical doctors to falsify medical diagnoses and disability certifications. The scheme resulted in the wrongful discharge of over approximately $11.2 million in loans under the disability-based relief programs.
* * *
In addition to the prison term, SEEMER, 44, of Elmsford, New York, was sentenced to three years of supervised release and ordered to pay restitution in the amount of $635,352.
Ms. Sassoon praised the outstanding investigative work of the Federal Bureau of Investigation and the U.S. Department of Education, Office of Inspector General.
The case is being prosecuted by the Office’s White Plains Division. Assistant U.S. Attorney Qais Ghafary is in charge of the prosecution.
Four Bronx Men Charged with Federal Firearms Offenses for Engaging in School Zone ShootoutRead the Press Release
Danielle R. Sassoon, the United States Attorney for the Southern District of New York, and Jessica S. Tisch, the Commissioner of the New York City Police Department (“NYPD”), announced today the unsealing of a complaint charging LEO BONILLA, RIMEL MACK (“RIMEL”), YOMEL MACK (“YOMEL”), and BRYANT TORRES in connection with a shootout on or about August 24, 2024, that occurred in the vicinity of P.S. 396 and Middle School 390 on Andrews Avenue in the Bronx, New York, during which at least five individuals discharged a total of at least 20 rounds, and at least three people were shot and injured. BONILLA, YOMEL, and TORRES will be presented today before U.S. Magistrate Judge Ona T. Wang, and RIMEL remains at large.
U.S. Attorney Danielle R. Sassoon said: “As alleged, the four defendants exchanged gunfire in broad daylight on Andrews Avenue in the Bronx, a heavily populated residential area with two public schools. The shootout resulted in multiple rounds being fired indiscriminately, endangering the lives of residents and school-aged children. This Office will continue to protect our children and our neighborhoods from gun violence.”
NYPD Commissioner Jessica S. Tisch said: “Every single day, the members of the NYPD are out in the streets going after criminals who endanger our kids and our communities. Today’s charges and the record low shootings we experienced in January make clear that our precision policing strategies are working. I thank the U.S Attorney’s Office for their partnership and commitment to keeping New Yorkers safe.”
According to the allegations contained in the Complaint:
On or about August 24, 2024, a shootout (the “Shootout”) occurred in the vicinity of P.S. 396 and Middle School 390 on Andrews Avenue in the Bronx, New York (the “Schools”), during which at least five individuals discharged a total of at least 20 rounds, and at least three people were shot and injured. As depicted on the map below, the Schools are located on Andrews Avenue, with P.S. 396 serving students in pre-kindergarten through fifth grade and Middle School 390 serving students in grades six through eight. The Shootout began with shots fired from a residential building on Andrews Avenue (the “Residential Building”), marked on the map below by a red flag. The Shootout then continued in the middle of Andrews Avenue in front of the Schools.
At approximately 4:30 p.m., RIMEL MACK, YOMEL MACK, and TORRES, the defendants, walked southbound on Andrews Avenue towards West Burnside Avenue in the Bronx. After they approached West Burnside Avenue, RIMEL, YOMEL, and TORRES turned around and went back northbound on Andrews Avenue. Earlier that day, YOMEL had been stabbed, so RIMEL, YOMEL, and TORRES were believed to be “spinning the block,” or in other words, seeking retaliation and demonstrating toughness and dominance in the neighborhood. At approximately the same time as the three defendants were spinning the block, BONILLA, the fourth defendant, walked in and out of the front door of the Residential Building. As RIMEL, YOMEL, and TORRES walked northbound past the Residential Building, BONILLA emerged and fired multiple shots in their direction:RIMEL, YOMEL, and TORRES then drew firearms and began shooting back in the direction of BONILLA. In the exchange of gunfire, both YOMEL and TORRES were hit. TORRES crawled across Andrews Avenue near a parked black SUV (on the side of the street where the Schools are located). Surveillance video captured TORRES reaching up near the rear driver’s-side tire of the SUV—the same location where a black SCCY CPX-2 9mm firearm was later recovered.
RIMEL and YOMEL ran towards the middle of Andrews Avenue and began to flee northbound away from BONILLA, but RIMEL ran back to the sidewalk on the side of the street with the Residential Building and fired multiple rounds back in the direction of BONILLA. RIMEL and YOMEL then fled northbound on Andrews Avenue. As the two fled northbound, YOMEL (left) and RIMEL (right) fired multiple gunshots at an individual hiding underneath a red pickup truck (the “Victim”):Following the Shootout, BONILLA fled southbound on Andrews Avenue. RIMEL and YOMEL continued to flee northbound on Andrews Avenue, and YOMEL was eventually taken to Lincoln Hospital in the Bronx. TORRES and the Victim were transported to Bronx Care Hospital. TORRES suffered three gunshot wounds to his buttocks and a fractured pelvis. The Victim suffered nine gunshot wounds, including two to his left arm, two to his right hip, one to his left hip, two to his left knee, and two to his left arm.
* * *
BONILLA, 41, of the Bronx, New York, is charged with one count of possession of ammunition after a felony conviction, which carries a maximum sentence of 15 years in prison.
RIMEL, 26, of the Bronx, New York, is charged with one count of conspiracy to possess a firearm in a school zone, which carries a maximum sentence of five years in prison, and one count of possession of a firearm in a school zone, which carries a maximum sentence of five years in prison.
YOMEL, 29, of the Bronx, New York, is charged with one count of possession of ammunition after a felony conviction, which carries a maximum sentence of 15 years in prison, one count of conspiracy to possess a firearm in a school zone, which carries a maximum sentence of five years in prison, and one count of conspiracy to possess a firearm in a school zone, which carries a maximum sentence of five years in prison.
TORRES, 26, of the Bronx, New York, is charged with one count of conspiracy to possess a firearm in a school zone, which carries a maximum sentence of five years in prison, and one count of possession of a firearm in a school zone, which carries a maximum sentence of five years in prison.
The maximum potential sentences in this case are prescribed by Congress and provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Ms. Sassoon praised the outstanding investigative work of the NYPD.
The prosecution is being handled by the Office’s Violent and Organized Crime Unit. Assistant U.S. Attorney Jared Hoffman is in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Member of Al-Qaeda in the Arabian Peninsula Sentenced to 44 Years in Prison for Terrorism OffensesRead the Press Release
Minh Quang Pham, also known as “Amim”, 41, was sentenced today to 44 years in prison and a lifetime of supervised release for attempted suicide bombing in alliance with al-Qaeda in the Arabian Peninsula (AQAP), a designated foreign terrorist organization.
“The defendant was sentenced for an attempt to commit an act of terrorism and plotting a suicide bombing on behalf of AQAP,” said Devin DeBacker, head of the Justice Department’s National Security Division. “The Justice Department will not rest in seeking justice for acts of terrorism and will continue to thwart any attempt to jeopardize global security.”
“Pham coordinated with known terrorist Anwar al-Aulaqi on a plot to conduct a suicide bombing at Heathrow International Airport which could have killed or injured many people, but fortunately that plan was stopped,” said Assistant Director David J. Scott of the FBI’s Counterterrorism Division. “Pham also tried to recruit others to commit acts of terrorism. The FBI will work with our partners to hold accountable those who align themselves with terrorist organizations and attempt to carry out acts of violence.”
“Minh Quang Pham's actions were not just an affront to the safety of this country, but to the principles of peace and security that we hold dear,” said U.S. Attorney Danielle R. Sassoon for the Southern District of New York. “Today’s sentencing underscores our collective resolve to stop terrorism before it occurs, and place would-be terrorists in prison.”
According to court documents, in December 2010, Pham informed others that he planned to travel to Ireland while residing in London. From Ireland, he traveled to Yemen, the principal base of operations for AQAP. Pham traveled to Yemen in order to join AQAP, wage jihad on behalf of AQAP, and martyr himself for AQAP’s cause. After arriving in Yemen, he swore an oath of loyalty to AQAP in the presence of an AQAP commander.
While in Yemen in 2010 and 2011, Pham provided assistance to and received training from Anwar al-Aulaqi, a U.S.-born senior leader of AQAP. Al-Aulaqi advised Pham to return to the U.K. for the purpose of finding and making contact with individuals who, like Pham, wanted to travel to Yemen to join AQAP. Al-Aulaqi also provided Pham with money, as well as a telephone number and e-mail address that Pham was to use to contact al-Aulaqi upon his return to the U.K. In addition, Pham exchanged his laptop computer with al-Aulaqi, who provided him with a new “clean” laptop to take with him when he returned to the U.K. so that the authorities would not find anything if they searched his computer.
In or about June 2011, prior to his departure from Yemen, Pham approached al-Aulaqi about conducting a suicide attack whereby he would “sacrifice” himself on behalf of AQAP. Al-Aulaqi personally taught Pham how to create a lethal explosive device using household chemicals and directed Pham to detonate such an explosive device at the arrivals area of Heathrow International Airport following Pham’s return to the U.K. in 2011. Al-Aulaqi instructed Pham to carry an explosive in a concealed backpack and target the area where flights arrived from the U.S. or Israel. During this time, Pham made videos depicting his preparation to carry out that attack. In one video, Pham is shown wiring an electrical device for the use of making an explosive device. In another video, he sketches an explosive device to be contained in a backpack, and in a third, Pham wears a backpack with wiring for explosives on it, which he turns on in the video.
During this time, around June or July 2011 — shortly before Pham returned from Yemen to the U.K. — Pham recorded a video in which he attempted to recruit and encourage individuals in the West to engage in violent jihad abroad or in their home countries. In this video, he also expresses a desire to martyr himself. At the outset of this video, consisting of an approximately 13-minute-long monologue, Pham states that, “America itself is not fighting a war with a group or an organization, they are fighting with the army of Allah, the believers.” He continues, in part, “We have that opportunity, that ability to be in their midst, in their land . . . and I advise the brothers inshallah to, whatever you can, to gather and prepare and strike the enemy in their own land . . . The saying, a thousand cuts, you hit them with as much as you can until inshallah the enemy will bleed to death.” During his time in Yemen, Pham also assisted with the preparation and dissemination of AQAP’s propaganda magazine, Inspire. Pham, who has college degrees in both graphic design and animation, worked directly with now-deceased U.S. citizen, Samir Khan, who was a prominent member of AQAP responsible for editing and publishing Inspire.
Pham also received a six-page document entitled “Your Instructions” from al-Aulaqi in Yemen, which provided detailed instructions on how Pham was to commit his suicide attack at Heathrow. The document from al-Aulaqi instructed Pham, “[d]o not do anything for the first three months” and “[y]ou should target Christmas/ New Year season[.]” The instructions from al-Aulaqi provided explicit direction about the importance of using shrapnel to kill as many people as possible, including that “[t]he proper use of shrapnel is as important as the main charge itself. The detonation wave from a main charge of AP by itself is most likely not going to cause the death of anyone except those who are in its immediate vicinity. It is the shrapnel that would do the job. You may imagine this IED as a shotgun that is firing in all directions.” The document therefore instructed Pham to take “special care” with the “proper arrangement and choice of shrapnel,” and to “poison” it to inflict maximum death.
On July 27, 2011, Pham returned to the U.K. Upon his arrival at Heathrow, U.K. authorities detained Pham, searched him, and recovered various materials from him, including a live round of 7.62mm caliber armor-piercing ammunition, which is consistent with ammunition that is used in a Kalashnikov assault rifle, a type of weapon for which Pham received training from AQAP in Yemen. U.K. authorities released Pham and cautioned him for his possession of the live round of ammunition, before, in December 2011, arresting him pursuant to their authorities under U.K. immigration law. In searches of Pham’s residence, other locations, and vehicles, U.K. authorities recovered several pieces of electronic media. Among other things, a forensic analysis of Pham’s electronic media showed that he was accessing speeches and writings of al-Aulaqi as late as December 2011 — months after Pham’s return to the U.K.
On May 24, 2012, a grand jury returned an indictment charging Pham with terrorism offenses and U.S. authorities sought Pham’s extradition from the U.K. He was provisionally arrested with a view towards extradition on June 29, 2012, and he was extradited to the United States on Feb. 26, 2015. On Jan. 8, 2016, Pham pleaded guilty to terrorism offenses related to certain of the same underlying conduct. On May 27, 2016, Pham was sentenced by U.S. District Judge Alison J. Nathan principally to a term of 40 years in prison. On Sept. 12, 2017, the U.S. Court of Appeals for the Second Circuit affirmed Pham’s conviction and sentence. Thereafter, Pham made a motion that, based on intervening Supreme Court decisions, resulted in the vacatur of one of the counts of his conviction. Ultimately, the government, with Pham’s consent, moved to vacate Pham’s earlier convictions. On April 8, 2021, a grand jury returned a superseding indictment, reinstating certain charges and filing other new charges against Pham, and which formed the basis for Pham’s May 11, 2023, guilty plea and conviction.
The FBI Washington and New York Field Offices investigated the case. The Justice Department's Office of International Affairs, Metropolitan Police Service/SO 15 Counter Terrorism Command at New Scotland Yard, Crown Prosecution Service, and the Home Office provided assistance in the investigation, extradition, and prosecution of the case.
Assistant U.S. Attorney Jacob H. Gutwillig for the Southern District of New York and Trial Attorney John Cella of the National Security Division’s Counterterrorism Section prosecuted the case.
Member of Al Qaeda in the Arabian Peninsula Sentenced to 44 Years in Prison for Terrorism OffensesRead the Press Release
Danielle R. Sassoon, the United States Attorney for the Southern District of New York; Devin DeBacker, the Head of the National Security Division of the United States Department of Justice; and Sanjay Virmani, the Special Agent in Charge of the Counterterrorism Division of the Washington Field Office of the Federal Bureau of Investigation ("FBI"), announced today that MINH QUANG PHAM, a/k/a “Amin,” 41, was sentenced to 44 years in prison for terrorism charges based on Pham’s support of al Qaeda in the Arabian Peninsula (“AQAP”), a designated foreign terrorist organization, including attempting to commit a suicide bombing at Heathrow International Airport (“Heathrow Airport”). On May 11, 2023, PHAM pled guilty to providing and attempting to provide material support to AQAP and participating in a conspiracy to do the same; conspiring to receive military-type training from AQAP; and providing and attempting to provide material support for acts of terrorism. Today’s sentence was imposed by U.S. District Judge Richard M. Berman.
U.S. Attorney Danielle R. Sassoon said: “Minh Quang Pham's actions were not just an affront to the safety of this country, but to the principles of peace and security that we hold dear. Today’s sentencing underscores our collective resolve to stop terrorism before it occurs, and place would-be terrorists in prison.”
Head of the Justice Department’s National Security Division Devin DeBacker said: “The defendant was sentenced for an attempt to commit an act of terrorism and plotting a suicide bombing on behalf of AQAP. The Justice Department will not rest in seeking justice for acts of terrorism and will continue to thwart any attempt to jeopardize global security.”
FBI Special Agent in Charge Sanjay Virmani said: "Pham pledged an oath of loyalty to al-Qaida in the Arabian Peninsula and received military training from AQAP as part of his plot to commit a suicide bombing on the organization's behalf. This case is a reminder of the relentless terrorism threats targeting the U.S., our citizens, and our interests abroad. We thank our international partners for their collaboration over the last 15 years, particularly the U.K.'s Crown Prosecution Service, Metropolitan Police Service, and New Scotland Yard. Their work prevented Pham from conducting a terrorist attack at Heathrow Airport and later helped lead to his conviction in the U.S."
According to the indictments, extradition materials, court filings and statements made at related court proceedings, including today’s sentencing:
In December 2010, PHAM informed others that he planned to travel to Ireland while residing in London. From Ireland, he traveled to Yemen, the principal base of operations for AQAP. PHAM traveled to Yemen in order to join AQAP, to wage jihad on behalf of AQAP and to martyr himself for AQAP’s cause. After arriving in Yemen, he swore an oath of loyalty to AQAP in the presence of an AQAP commander.
While in Yemen in 2010 and 2011, PHAM provided assistance to and received training from Anwar al-Aulaqi, a U.S.-born senior leader of AQAP. Al-Aulaqi advised PHAM to return to the United Kingdom for the purpose of finding and making contact with individuals who, like PHAM, wanted to travel to Yemen to join AQAP. Al-Aulaqi also provided PHAM with money, as well as a telephone number and e-mail address that PHAM was to use to contact al-Aulaqi upon his return to the U.K. In addition, PHAM exchanged his laptop computer with al-Aulaqi, who provided him with a new “clean” laptop to take with him when he returned to the U.K. so that the authorities would not find anything if they searched his computer.
In or about June 2011, prior to his departure from Yemen, PHAM approached al-Aulaqi about conducting a suicide attack whereby he would “sacrifice” himself on behalf of AQAP. Al-Aulaqi personally taught PHAM how to create a lethal explosive device using household chemicals and directed PHAM to detonate such an explosive device at the arrivals area of Heathrow following PHAM’s return to the U.K. in 2011. Al-Aulaqi instructed PHAM to carry an explosive in a concealed backpack and target the area where flights arrived from the U.S. or Israel. During this time, PHAM made videos depicting his preparation to carry out that attack. In one video, PHAM is shown wiring an electrical device for the use of making an explosive device; in another, he sketches an explosive device to be contained in a backpack; and in a third, PHAM wears a backpack with wiring for explosives on it, which he turns on in the video.
Also during this time, in or about June or July 2011—shortly before PHAM returned from Yemen to the U.K.—PHAM recorded a video in which he attempted to recruit and encourage individuals in the West to engage in violent jihad abroad or in their home countries; in this video, he also expresses a desire to martyr himself. At the outset of this video, consisting of an approximately 13 minute-long monologue, PHAM states that, “America itself is not fighting a war with a group or an organization, they are fighting with the army of Allah, the believers.” He continues, in part, “We have that opportunity, that ability to be in their midst, in their land . . . and I advise the brothers inshallah to, whatever you can, to gather and prepare and strike the enemy in their own land . . . The saying, a thousand cuts, you hit them with as much as you can until inshallah the enemy will bleed to death.” During his time in Yemen, PHAM also assisted with the preparation and dissemination of AQAP’s propaganda magazine, Inspire. PHAM, who has college degrees in both graphic design and animation, worked directly with now-deceased U.S. citizen Samir Khan, who was a prominent member of AQAP responsible for editing and publishing Inspire.
PHAM also received a six-page document entitled “Your Instructions” from al-Aulaqi in Yemen, which provided detailed instructions on how PHAM was to commit his suicide attack at Heathrow. The document from al-Aulaqi instructed PHAM, “[d]o not do anything for the first three months” and “[y]ou should target Christmas/ New Year season[.]” The instructions from al-Aulaqi provided explicit direction about the importance of using shrapnel to kill as many people as possible, including that “[t]he proper use of shrapnel is as important as the main charge itself. The detonation wave from a main charge of AP by itself is most likely not going to cause the death of anyone except those who are in its immediate vicinity. It is the shrapnel that would do the job. You may imagine this IED as a shotgun that is firing in all directions.” The document therefore instructed PHAM to take “special care” with the “proper arrangement and choice of shrapnel,” and to “poison” it to inflict maximum death.
On July 27, 2011, PHAM returned to the U.K. Upon his arrival at Heathrow, U.K. authorities detained PHAM, searched him, and recovered various materials from him, including a live round of 7.62mm caliber armor-piercing ammunition, which is consistent with ammunition that is used in a Kalashnikov assault rifle, a type of weapon for which PHAM received training from AQAP in Yemen. U.K. authorities released PHAM and cautioned him for his possession of the live round of ammunition, before, in December 2011, arresting him pursuant to their authorities under U.K. immigration law. In searches of PHAM’s residence, other locations, and vehicles, U.K. authorities recovered several pieces of electronic media. Among other things, a forensic analysis of PHAM’s electronic media showed that he was accessing speeches and writings of al-Aulaqi as late as December 2011—months after PHAM’s return to the U.K.
On May 24, 2012, a grand jury returned an indictment charging Pham with terrorism offenses and U.S. authorities sought Pham’s extradition from the United Kingdom. He was provisionally arrested with a view towards extradition on June 29, 2012, and he was extradited to the United States on February 26, 2015. On January 8, 2016, Pham pled guilty to terrorism offenses related to certain of the same underlying conduct. On May 27, 2016, Pham was sentenced by U.S. District Judge Alison J. Nathan principally to a term of 40 years in prison. On September 12, 2017, the U.S. Court of Appeals for the Second Circuit affirmed Pham’s conviction and sentence. Thereafter, Pham made a motion that, based on intervening Supreme Court decisions, resulted in the vacatur of one of the counts of his conviction. Ultimately, the Government, with Pham’s consent, moved to vacate Pham’s earlier convictions. On April 8, 2021, a grand jury returned a superseding indictment, reinstating certain charges and filing other new charges against Pham, and which formed the basis for Pham’s May 11, 2023 guilty plea and conviction.
* * *
In addition to the prison term, PHAM, 41, was also sentenced to life term of supervised release and a $400 special assessment.
Ms. Sassoon praised the extraordinary investigative work of the FBI’s Washington Field Office. She also expressed her gratitude to the FBI’s New York Joint Terrorism Task Force for the critical role it played in the investigation and prosecution. Ms. Sassoon also thanked the Department of Justice’s National Security Division and Office of International Affairs for their significant assistance, as well as the Metropolitan Police Service/SO 15 Counter Terrorism Command at New Scotland Yard, the Crown Prosecution Service, and the Home Office for their cooperation in the investigation, extradition and prosecution.
This prosecution is being handled by the Office’s National Security and International Narcotics Unit. Assistant U.S. Attorney Jacob H. Gutwillig is in charge of the prosecution, with assistance from Trial Attorney John Cella of the National Security Division’s Counterterrorism Section.
Two Chinese Chemical Company Executives Convicted and Multiple Websites and Cryptocurrency Accounts Seized in Connection with Fentanyl Precursor Importation and Money Laundering SchemesRead the Press Release
Danielle R. Sassoon, the United States Attorney for the Southern District of New York, and Derek S. Maltz, the Acting Administrator of the U.S. Drug Enforcement Administration (“DEA”), announced that a jury returned a guilty verdict against QINGZHOU WANG, a/k/a “Bruce” (“WANG”), and YIYI CHEN, a/k/a “Chiron” (“CHEN”), on fentanyl precursor importation and money laundering charges. WANG was also convicted of importing a methamphetamine precursor. WANG and CHEN, both nationals of China, were found guilty following a two-week trial before U.S. District Judge Paul G. Gardephe.
U.S. Attorney Danielle R. Sassoon and Acting Administrator Derek S. Maltz also announced today the seizure of domain names for seven websites and four cryptocurrency accounts, totaling approximately $900,000 worth of digital funds, tied to the illicit precursor chemical business of WANG and CHEN’s company, HUBEI AMARVEL BIOTECH CO., LTD., a/k/a “AmarvelBio,” (“AMARVEL BIOTECH”), its related entities, and its executives and employees. Five additional websites tied to AMARVEL BIOTECH, including its principal website, were previously seized in June 2023.
U.S. Attorney Danielle R. Sassoon said: “Qingzhou Wang and Yiyi Chen conspired to import massive amounts of fentanyl precursors from China into the United States. They did so with callous disregard for the effect that such deadly chemicals would ultimately have here in the United States. Now, they stand convicted in an American courtroom and face a substantial term of imprisonment for their crimes. And we are not done. The seizures announced today continue the ongoing fight against the fentanyl supply chain. The message should be clear: we are watching, and we will continue to dismantle these fentanyl precursor operations, and bring the individuals responsible to justice.”
Acting Administrator Derek S. Maltz said: “I have personally seen the devastation that illicit fentanyl has had on American families. I have looked into the eyes of hundreds of mothers, fathers, sisters, and brothers, who would give anything to have one more moment with their loved one. The DEA’s top priority is protecting the safety of the American people. These convictions, and the seizures of these websites and accounts, show that no matter where you live in the world or where you operate in the fentanyl supply chain, the DEA will utilize all of our resources to bring you to justice. I’m incredibly proud of the men and women of DEA, alongside our law enforcement partners, who worked tirelessly on this investigation and the unrelenting fight against illicit fentanyl.”
As reflected in the Indictment, public filings, and the evidence presented at trial:
AMARVEL BIOTECH was a chemical manufacturer based in the city of Wuhan, in Hubei province, China, that exported vast quantities of the precursor chemicals used to manufacture fentanyl and its analogues. A synthetic opioid that is 50 times more potent than heroin, fentanyl is now the leading cause of death for Americans ages 18 to 49. Fentanyl analogues, similar in chemical makeup and effect to fentanyl, can be even more potent and lethal than fentanyl. Fentanyl and its analogues have devastated communities across the U.S. and are fueling the ongoing opioid epidemic, which killed at least 105,263 Americans between February 2022 and January 2023 alone.
During the course of an undercover investigation by the Drug Enforcement Administration (“DEA”), AMARVEL BIOTECH and its principal executive, WANG, its marketing manager, CHEN, and a sales representative, FNU LNU, a/k/a “Er Yang,” a/k/a “Anita” (“YANG”), shipped more than 200 kilograms from China to the United States of precursor chemicals used to make fentanyl and its analogues. AMARVEL BIOTECH, WANG, CHEN, and YANG shipped the precursors to the U.S. after being told that the chemicals would be used to produce fentanyl in New York, and they agreed to supply multi-ton shipments of fentanyl precursors despite being told that Americans had died after consuming fentanyl made from the chemicals that the defendants had sold.
For example, on or about November 17, 2022, a DEA confidential source (“CS-1”) wrote to YANG using an encrypted messaging application, “You know I making fentanyl,” and “Is not safe.” YANG replied, “i know.” On or about December 1, 2022, YANG wrote to CS-1, promising that CS-1 would be “happy with our product” and noting that CS-1 would “be able to synthesize fentanyl.” In exchange for payment in cryptocurrency, AMARVEL BIOTECH thereafter shipped from China to New York approximately 999.7 grams of the fentanyl precursor 1-boc-4-AP, approximately 1,002.6 grams of the fentanyl precursor 1-boc-4-piperidone, and approximately 893.6 grams of the methamphetamine precursor methylamine.
In or about March 2023, WANG and CHEN traveled from China to Bangkok, Thailand, to meet with an individual whom CS-1 represented was CS-1’s boss, but was in fact another DEA confidential source (“CS-2”). During the meeting, WANG and CHEN discussed AMARVEL BIOTECH’s ability to supply ton-quantities of fentanyl precursors to New York for CS-1 and CS-2’s fentanyl manufacturing operation. After CS-2 stated that CS-2 wanted a different formula for manufacturing fentanyl and that several of CS-2’s American customers had purportedly died, WANG and CHEN advised they had “a lot of customers in America and Mexico” who could provide technical assistance with fentanyl production.
After the March 2023 meeting in Bangkok, AMARVEL BIOTECH, WANG, CHEN, and YANG agreed to sell CS-1 and CS-2 approximately 210 kilograms of fentanyl precursors in exchange for payment in cryptocurrency. During an April 10, 2023 video call with WANG and CHEN, CS-2 stated that the approximately 210 kilograms of fentanyl precursors would be used to manufacture approximately 50 to 55 kilograms of fentanyl—an amount that could contain approximately 25 million deadly doses.
In or about May 2023, AMARVEL BIOTECH, WANG, CHEN, and YANG sent to the U.S. the shipment ordered by CS-1 and CS-2. On or about May 5, 2023, the DEA retrieved the precursor shipment from a warehouse near Los Angeles, California. Lab testing confirmed the presence of a precursor chemical for a fentanyl analogue. In an encrypted messaging group chat with CS-1, CS-2, WANG, and CHEN, YANG explained that “New York, the United States, has been strict in checking the precursors of the ‘final product’ some time ago, so for the sake of safety, this time it is sent to California.”
In or about June 2023, WANG and CHEN traveled from China to meet again with CS-2. During the meeting, WANG and CHEN discussed with CS-2 a multi-ton order of fentanyl precursor chemicals. WANG and CHEN also discussed the need to take additional measures to protect themselves from detection and interdiction of their shipments “because recently American government . . . seized some Mexican group and they followed the routes to China,” where the U.S. Government found “our competitor in China”—an apparent reference to fentanyl-related charges filed in the Southern District of New York and announced in April 2023 against, among others, leadership of the Sinaloa Cartel and certain China-based precursor chemical company executives.
AMARVEL BIOTECH openly advertised online its sale of precursor chemicals for use in manufacturing fentanyl. Through its website and a host of other storefront sites, AMARVEL BIOTECH targeted precursor chemical customers in Mexico, where drug cartels operate clandestine laboratories and distribute finished fentanyl into and throughout the United States, including by advertising fentanyl precursors as a “Mexico hot sale,” guaranteeing “100% stealth shipping” abroad, and posting to its websites documentation of AMARVEL BIOTECH shipping chemicals to Culiacan, the home city of the Sinaloa Cartel, one of the dominant drug trafficking organizations in the Western Hemisphere and which is largely responsible for the massive influx of fentanyl into the U.S. in recent years. Below is a screenshot of one of AMARVEL BIOTECH’s store pages for a fentanyl precursor:
AMARVEL BIOTECH also endeavored to thwart law enforcement interdiction of its precursor chemical shipments. AMARVEL BIOTECH advertised online the business’s ability to use deceptive packaging—such as packaging indicating the contents are dog food, nuts, or motor oil—to ensure “safe” delivery of the illicit contents such shipments. An example of one of AMARVEL BIOTECH’s online advertisements are shown below:
* * *
WANG, 36, of China, and CHEN, 32, of China, were each convicted of: one count of conspiracy to import the fentanyl precursor chemical 1-boc-4-AP, knowing or having reasonable cause to believe it will be used to manufacture fentanyl, which carries a maximum sentence of 20 years in prison, and one count of conspiracy to commit money laundering, which carries a maximum sentence of 20 years in prison. WANG was also convicted of: one count of importation of the fentanyl precursor chemical 1-boc-4-AP, knowing or having reasonable cause to believe it will be used to manufacture fentanyl, which carries a maximum sentence of 20 years in prison, and one count of importation of the methamphetamine precursor chemical methylamine, which carries a maximum sentence of 10 years in prison. WANG and CHEN were each acquitted of one count of conspiracy to manufacture, distribute, and possess with intent to distribute fentanyl and a fentanyl-related substance.
The maximum penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by a judge.
A table listing the websites for which the domain names have been seized pursuant Title 21, U.S. Code, Sections 853 and 970 is set forth below:
Website
Time of Seizure
https://www.whwingroup.com/July 2024
https://www.14-butanediol.com/July 2024
https://www.110-63-4.com/July 2024
https://www.bdo110634.com/July 2024
https://www.ghbbdo.com/July 2024
https://www.pmk28578.com/July 2024
https://www.whrchem.com/July 2024
https://www.amarvelbio.com/June 2023
https://www.14bdo-gbl.com/June 2023
https://www.5449-12-7.com/June 2023
https://www.pmk-piperidine.com/June 2023
https://www.buypmk28578-16-7.com/June 2023
Internet users attempting to access the seized domains now see the following:
Ms. Sassoon praised the outstanding efforts of the DEA’s Special Operations Division Bilateral Investigations Unit. Ms. Sassoon also thanked the DEA Bangkok Country Office, DEA Wellington Country Office, DEA Beijing Country Office, DEA Honolulu District Office, DEA New York Organized Crime Drug Enforcement Task Force (“OCDETF”) Strike Force, DEA Riverside District Office, DEA Special Testing Laboratory, the DEA Southwest Laboratory, the Office of International Affairs of the Department of Justice’s Criminal Division, the Royal Thai Police Narcotics Suppression Bureau, the Fiji Police Force Narcotic Bureau, the Fiji Office of the Director of Public Prosecutions, and the U.S. Attorney’s Office for the District of Hawaii for their assistance.
This case is being handled by the Office’s National Security and International Narcotics Unit. Assistant U.S. Attorneys Alexander Li and Kevin Sullivan are in charge of the prosecution, with assistance from Paralegal Specialist Sabrina Jim Munoz.
Former NYCHA Superintendent Sentenced to 48 Months in Prison for Accepting More Than $300,000 in BribesRead the Press Release
Danielle R. Sassoon, the United States Attorney for the Southern District of New York, announced that JUAN MERCADO, a former superintendent for the New York City Housing Authority (“NYCHA”), was sentenced today to 48 months in prison for soliciting and accepting hundreds of thousands of dollars in bribes from contractors in exchange for awarding those contractors no-bid contracts or approving payment on previously awarded contracts at NYCHA developments. MERCADO’s sentence was imposed by U.S. District Judge Valerie E. Caproni, who also presided over his guilty plea.
U.S. Attorney Danielle R. Sassoon said: “As a public housing superintendent, Juan Mercado held a position of public trust. For years, Mercado abused his position by demanding and accepting more than $300,000 in bribes in connection with repair work at NYCHA developments – money that should have gone to improving the lives of NYCHA residents. As today’s sentence shows, corruption will not be tolerated at any level of government.”
According to the Information and Complaint, the plea agreement, and evidence presented during a multi-day evidentiary hearing:
NYCHA is the largest public housing authority in the country, providing housing to New Yorkers across the City and receiving over $1.5 billion in federal funding from the U.S. Department of Housing and Urban Development (“HUD”) every year. When repairs or construction work at NYCHA housing require the use of outside contractors, services must typically be purchased via a bidding process. However, when the value of a contract was under a certain threshold, designated staff at NYCHA developments, including superintendents, could hire a contractor of their choosing without soliciting multiple bids. With either type of contract, a NYCHA employee needed to certify that the work was satisfactorily completed in order for the contractor to receive payment from NYCHA.
From at least 2014 through at least July 2023, MERCADO served as a superintendent at multiple NYCHA housing developments in Queens. For approximately nine years, MERCADO demanded and received hundreds of thousands of dollars from multiple contractors in exchange for arranging for those contractors to receive contract work at developments where MERCADO was employed or in order for MERCADO to sign off on work that had been completed. Although MERCADO initially demanded that contractors pay him 10% of the contract value in order to receive the work, MERCADO eventually doubled the amount that contractors had to pay from 10% to 20% of the value of the contract. The contractors typically paid MERCADO between $500 and $2,000 for each contract on hundreds of occasions. In total, MERCADO accepted approximately $329,300 in bribes in connection with at least $1,886,000 in contract work at NYCHA developments.
Of the 70 individual NYCHA employees charged with bribery and extortion offenses in February 2024, 60 have pled guilty, and three have been convicted after trial.
If you believe you have information related to bribery, extortion, or any other illegal conduct by NYCHA employees, please contact [email protected] or (212) 306-3356. If you were involved in such conduct, please consider self-disclosing through the SDNY Whistleblower Pilot Program at [email protected].
* * *
In addition to the prison term, MERCADO, 50, of West Babylon, New York, was sentenced to 3 years of supervised release and ordered to pay restitution in the amount of $329,300 and forfeit $329,300.
Ms. Sassoon praised the outstanding investigative work of the New York City Department of Investigation, U.S. Department of Homeland Security – Homeland Security Investigations (“HSI”), the HUD Office of Inspector General, and the U.S. Department of Labor – Office of Inspector General, which work together collaboratively as part of the HSI Document and Benefit Fraud Task Force, as well as the Special Agents and Task Force Officers of the U.S. Attorney’s Office for the Southern District of New York.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (“OCDETF”) operation. OCDETF identifies, disrupts, and dismantles criminal organizations using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
This case is being handled by the Office’s Public Corruption Unit. Assistant U.S. Attorneys Jerry J. Fang, Jacob R. Fiddelman, Catherine Ghosh, and Meredith C. Foster are in charge of the prosecution, with the assistance of Paralegal Specialist Nandita Vasantha.
New Jersey Man Sentenced to 18 Months in Prison for Causing the Death of A Seven-Year-Old Boy and A 48-Year-Old Woman in Hudson River Boat CapsizingRead the Press Release
Danielle R. Sassoon, the United States Attorney for the Southern District of New York, announced today that RICHARD CRUZ, who caused the deaths of a seven-year-old boy and a 48-year-old woman after his motor vessel Stimulus Money capsized in the Hudson River in July 2022, was sentenced by U.S. District Judge Katherine Polk Failla to 18 months in prison. In October 2024, CRUZ pled guilty to misconduct and neglect of a ship officer resulting in death.
U.S. Attorney Danielle R. Sassoon said: “Today, Richard Cruz has been held accountable for his misconduct and negligent actions that caused the tragic deaths of a young boy and a woman when Cruz’s vessel capsized in the Hudson River. This prosecution should send a message to all captains and operators of commercial vessels that there will be consequences when they fail to follow the federal regulations and safety protocols that exist to keep passengers safe.”
According to the allegations contained in the Complaint, Information, and statements made in court:
On July 12, 2022, at approximately 2:40 p.m., the motor vessel Stimulus Money capsized in the Hudson River resulting in the death of two passengers — a seven-year-old boy (“Victim-1”) and a 48-year-old woman (“Victim-2”). At the time of the capsizing, CRUZ was the owner and captain of the vessel. CRUZ had purchased the vessel approximately three months before the capsizing. CRUZ conducted boat “tours” for paying customers onboard the vessel on multiple occasions in the months leading up to the capsizing, despite not having the required United States Coast Guard (“USCG”) credentials and certifications to do so.
CRUZ’s negligent actions and omissions caused the capsizing and the deaths of Victim-1 and Victim-2. At the time of the capsizing, among other things: CRUZ operated Stimulus Money with 13 people on board, exceeding the vessel’s maximum allowable capacity; CRUZ operated Stimulus Money at a high rate of speed even though an advisory had been issued to alert small watercraft of hazardous conditions, including high winds and heavy seas; CRUZ had not obtained a required USCG certification to operate the vessel with paying customers on board; and CRUZ operated Stimulus Money without a valid USCG Certificate of Inspection, which is required for a vessel to operate with paying customers on board.
All 13 people on board Stimulus Money were thrown overboard when it capsized in the Hudson River. Shortly after the capsizing, boats from the New York City Police Department’s (“NYPD”) Harbor Unit and the New York City Fire Department’s (“FDNY”) Dive Rescue Team, and ferries operating nearby, arrived at the scene of the capsizing to render emergency assistance. All but two passengers were recovered conscious and in varying medical conditions. They were subsequently transferred to hospitals in Manhattan and survived the capsizing. Approximately 25 minutes after the capsizing, members of the FDNY Dive Rescue Team recovered Victim-1 and Victim-2 from the Hudson River. They were trapped underneath the capsized vessel and found unconscious. Emergency medical personnel subsequently pronounced Victim-1 and Victim-2 deceased. The cause of death was drowning.
Please report any illegal passenger charters to the USCG at https://www.p3tips.com/878.
* * *
In addition to the sentence, CRUZ, 33, of Elizabeth, New Jersey, has been ordered to pay $50,000 in restitution for the funeral expenses of the victims.
Ms. Sassoon praised the outstanding investigative work of the USCG Investigative Service and the Special Agents and NYPD Detectives assigned to the U.S. Attorney’s Office for the Southern District of New York.
This case is being handled by the Office’s General Crimes Unit. Assistant U.S. Attorney Jeffrey W. Coyle is in charge of the prosecution.
Tren De Aragua Fugitive Charged in Federal Court with Possession of A Firearm and AmmunitionRead the Press Release
Danielle R. Sassoon, the United States Attorney for the Southern District of New York; William Walker, the Special Agent in Charge of the New York Field Office of Homeland Security Investigations (“HSI”); and Jessica S. Tisch, the Commissioner of the New York City Police Department (“NYPD”), announced that ANDERSON ZAMBRANO-PACHECO was arrested on January 28, 2025, and charged via a criminal Complaint filed in Manhattan federal court with being a fugitive from justice in possession of a firearm. ZAMBRANO-PACHECO was presented today before U.S. Magistrate Judge Jennifer E. Willis, who ordered that ZAMBRANO-PACHECO be detained.
U.S. Attorney Danielle R. Sassoon said: “As alleged, the defendant—a member of the violent Venezuelan transnational gang known as Tren de Aragua—went on the lam for several months after committing an armed home invasion and other crimes in Colorado. When he was located and arrested in New York City, he was found with a gun and ammunition. This Office is committed to addressing the threat of Tren de Aragua head-on. Thanks to the work of the career prosecutors of this Office and our law enforcement partners, the defendant is now apprehended and members of Tren de Aragua are being brought to justice.”
HSI Special Agent in Charge William S. Walker said: “Anderson Zambrano-Pacheco is an alleged dangerous fugitive affiliated with Tren de Aragua, a violent transnational criminal organization known for terrorizing the American public as seen in horrifying videos from Colorado. HSI’s operation yesterday is proof that collaboration between federal, state and law enforcement partners is essential to combat emerging threats and trends to our communities wherever we encounter them. We are committed to leading multijurisdictional and international investigations that target gang leaders, members and associates in the United States and abroad to maintain public safety.”
As alleged in the Complaint filed today:[1]
Law enforcement officers have been conducting an investigation of suspected members and affiliates of the violent transnational gang Tren de Aragua (“TDA”), including ZAMBRANO-PACHECO. TDA originated in Venezuela and has established a substantial foothold in the U.S., including in New York City. There are substantial intra-gang conflicts within TDA, and, in some cases, TDA members have disavowed the gang and described themselves as “Anti-Tren.” TDA members have engaged in numerous shootings and murders, and much of this violence is driven by hostilities between TDA and “Anti-Tren” members.
On August 18, 2024, police officers in Aurora, Colorado, responded to the report of a shooting that left one person dead. Surveillance footage from a nearby apartment building showed six armed men—including a person later identified to be ZAMBRANO-PACHECO—entering two apartment units while armed with handguns and an assault rifle. A warrant was issued for ZAMBRANO-PACHECO’s arrest in Colorado on or about September 17, 2024, based on an arrest affidavit seeking to charge ZAMBRANO-PACHECO with burglary and menacing. On or about October 22, 2024, a separate warrant was issued for ZAMBRANO-PACHECO’s arrest relating to other charges, including kidnapping, criminal extortion, and menacing.
On January 28, 2025, law enforcement tracked ZAMBRANO-PACHECO to an apartment in the Bronx, New York. Law enforcement officers found ZAMBRANO-PACHECO and his girlfriend in one of the bedrooms. In the course of securing ZAMBRANO-PACHECO, law enforcement saw a Smith and Wesson 9mm Pro Series pistol in a dresser drawer near ZAMBRANO-PACHECO. The gun was loaded with nine rounds of ammunition.
* * *
ZAMBRANO-PACHECO, 26, of Venezuela, is charged with being a fugitive in possession of a firearm and ammunition, which carries a maximum sentence of 15 years in prison.
The maximum potential penalty is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant would be determined by the judge.
Ms. Sassoon praised the outstanding investigative efforts of HSI New York, HSI Denver, the Aurora Police Department, the Arapahoe County District Attorney’s Office, the U.S. Border Patrol’s Intelligence Unit, and the NYPD. She added that the investigation is ongoing.
The case is being handled by the Office’s Violent and Organized Crime Unit. Assistant U.S. Attorneys Jun Xiang, Kathryn Wheelock, and Timothy Ly are in charge of the prosecution.
The charge contained in the Complaint is merely an accusation, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the descriptions of the Complaint set forth below constitute only allegations, and every fact described should be treated as an allegation.
Former U.S. Senator Robert Menendez Sentenced to 11 Years in Prison for Bribery, Foreign Agent, and Obstruction OffensesRead the Press Release
Danielle R. Sassoon, the United States Attorney for the Southern District of New York, announced today that former U.S. Senator ROBERT MENENDEZ, WAEL HANA, a/k/a “Will Hana,” and FRED DAIBES, were sentenced to 11 years, more than eight years, and seven years in prison, respectively, for bribery, foreign agent, and obstruction of justice offenses. MENENDEZ, HANA, and DAIBES were convicted on July 16, 2024, following a nine-week jury trial before U.S. District Judge Sidney H. Stein, who imposed today’s sentences.
U.S. Attorney Danielle R. Sassoon said: “The sentences imposed today result from an egregious abuse of power at the highest levels of the Legislative Branch of the federal government. Robert Menendez was trusted to represent the United States and the State of New Jersey, but instead he used his position to help his co-conspirators and a foreign government, in exchange for bribes like cash, gold, and a luxury car. The sentences imposed today send a clear message that attempts at any level of government to corrupt the nation’s foreign policy and the rule of law will be met with just punishment.”
According to the Superseding Indictment (“Indictment”), the evidence at trial, and public filings:[1]
MENENDEZ, at the time the Indictment was unsealed, was the senior U.S. Senator from New Jersey and the Chairman of the Senate Foreign Relations Committee (“SFRC”). Shortly after MENENDEZ began dating his now-wife Nadine Menendez, then known as Nadine Arslanian (“Nadine Menendez”), in 2018, Nadine introduced MENENDEZ to her long-time friend HANA, who is originally from Egypt. HANA lived in New Jersey, and maintained close connections with Egyptian officials. HANA was also a business associate of DAIBES, a New Jersey real estate developer and long-time donor to MENENDEZ, and Jose Uribe, who worked in the New Jersey insurance and trucking business.
Between 2018 and 2022, MENENDEZ and Nadine Menendez agreed to and did accept hundreds of thousands of dollars’ worth of bribes from HANA, DAIBES, and Uribe. These bribes included gold, cash, a luxury convertible, payments toward Nadine Menendez’s home mortgage, compensation for a low-or-no-show job for Nadine Menendez, home furnishings, and other things of value. In June 2022, the Federal Bureau of Investigation (“FBI”) executed a court-authorized search warrant at the New Jersey home of MENENDEZ and Nadine Menendez. During that search, the FBI found many of the fruits of this bribery scheme. Over $480,000 in cash — much of it stuffed into envelopes and hidden in clothing, closets, and a safe — was discovered in the home. Some of the envelopes contained the fingerprints of MENENDEZ or DAIBES. Agents also found home furnishings provided by HANA and DAIBES, the luxury vehicle paid for by Uribe parked in the garage, as well as over one hundred thousand dollars’ worth of gold bars in the home, which were provided by either HANA or DAIBES.
In exchange for these and other things of value, MENENDEZ agreed and promised to use his power and influence as a Senator to seek to protect HANA’s, Uribe’s, and DAIBES’s interests and to benefit foreign countries. Through this corrupt relationship, MENENDEZ agreed to take a series of official acts. First, MENENDEZ took actions to benefit the Government of Egypt and HANA, including by improperly seeking to pressure an official at the U.S. Department of Agriculture (“USDA”) in an attempt to protect a business monopoly granted to HANA by Egypt, and by secretly representing the interests of Egypt by, among other things, ghostwriting a letter for Egypt to be provided to his own Senate colleagues and providing non-public information and assistance to Egypt. Second, MENENDEZ took actions seeking to disrupt a criminal investigation undertaken by the Office of the New Jersey Attorney General (“NJAG”) related to Uribe and his associates. Third, MENENDEZ recommended that the President nominate a U.S. Attorney for the District of New Jersey whom MENENDEZ believed he could influence to disrupt a federal criminal prosecution undertaken by the U.S. Attorney’s Office for the District of New Jersey (“USAO-DNJ”) of DAIBES, and took actions to assist DAIBES by acting for the benefit of the Government of Qatar. Finally, MENENDEZ conspired and endeavored to obstruct justice in connection with the federal investigation into this scheme.
Promised Actions to Benefit Egypt and Pressure the USDA
Shortly after she began dating MENENDEZ in 2018, Nadine Menendez worked with HANA to introduce Egyptian government officials to MENENDEZ. Those introductions helped establish a corrupt agreement in which HANA, with assistance from DAIBES, provided bribes to MENENDEZ and Nadine Menendez in exchange for MENENDEZ’s agreed and promised actions to benefit Egypt and HANA, among others.
As part of the scheme, MENENDEZ, among other things, provided sensitive, non-public U.S. government information to Egyptian officials and otherwise took steps to secretly aid the Government of Egypt. For example, in or about May 2018, MENENDEZ provided Egyptian officials with non-public information regarding the number and nationality of persons then serving at the U.S. Embassy in Cairo, Egypt. Although this information was not classified, it was deemed highly sensitive because it could pose significant operational security concerns if disclosed to a foreign government or made public. Without telling his professional staff or the State Department that he was doing so, on or about May 7, 2018, MENENDEZ texted that sensitive, non-public embassy information to his then-girlfriend Nadine Menendez, who forwarded the message to HANA, who forwarded it to an Egyptian government official. Later that same month, MENENDEZ ghost-wrote a letter on behalf of Egypt to other U.S. Senators advocating for them to release a hold on $300 million in aid to Egypt. MENENDEZ sent this ghost-written letter to Nadine Menendez, who forwarded it to HANA, who sent it to Egyptian officials.
At various times between 2018 and 2022, MENENDEZ also conveyed to Egyptian officials, through Nadine Menendez, HANA, and/or DAIBES, that he would approve or remove holds on foreign military financing and sales of military equipment to Egypt in connection with his leadership role on the SFRC. For example, in or about July 2018, following meetings between MENENDEZ and Egyptian officials, which were arranged and attended by Nadine Menendez and HANA, MENENDEZ texted Nadine Menendez that she should tell HANA that MENENDEZ was going to sign off on an almost hundred-million-dollar weapons sale to Egypt. Nadine Menendez forwarded this text to HANA, who forwarded it to two Egyptian officials, one of whom replied with a “thumbs up” emoji.
In exchange for MENENDEZ’s agreement to take these and other actions, HANA promised Nadine Menendez payments, including from IS EG Halal Certified, Inc. (“IS EG Halal”), a New Jersey company that HANA operated with financial support and backing from DAIBES. IS EG Halal had no revenue until the spring of 2019, when the Government of Egypt granted IS EG Halal a monopoly on the certification of U.S. food exports to Egypt as compliant with halal standards, despite the fact that neither HANA nor his company had any experience with halal certification. The monopoly generated revenue for HANA, through which he paid Nadine Menendez as promised.
Because the monopoly harmed U.S. interests, including revoking the ability of multiple U.S. companies to certify meat and resulting in increased costs for U.S. meat suppliers, in or about April and May 2019, the USDA and the U.S. Embassy in Cairo contacted the Government of Egypt and sought reconsideration of its grant of monopoly rights to IS EG Halal. After being briefed on the USDA’s objections to IS EG Halal’s monopoly by HANA and Nadine Menendez, on May 23, 2019, MENENDEZ called a high-level USDA official, the Undersecretary of Agriculture for Trade and Foreign Agricultural Affairs (“Official-1”), and insisted that the USDA stop opposing IS EG Halal’s status as the sole halal certifier. When Official-1 attempted to explain why the monopoly was detrimental to U.S. interests, MENENDEZ reiterated his demand that the USDA stop interfering with IS EG Halal’s monopoly. Official-1 did not accede to MENENDEZ’s demand, and sought to reassure his staff against the pressure MENENDEZ attempted to apply, but IS EG Halal nevertheless kept its monopoly.
After financially benefitting from IS EG Halal’s monopoly, HANA, at times with the assistance of DAIBES, provided payments and other things of value in furtherance of the scheme. For example, in or about July 2019, after the mortgage company for the residence of Nadine Menendez initiated foreclosure proceedings, HANA caused IS EG Halal to pay approximately $23,000 to bring the mortgage current. HANA did so after a series of discussions with Nadine Menendez, as well as Uribe and DAIBES, about various options for bringing the mortgage current. Later in 2019, HANA and DAIBES caused IS EG Halal to issue three $10,000 checks to a “consulting” company MENENDEZ helped Nadine Menendez create as supposed payment for a low-or-no-show job. As the scheme continued, including through the additional actions described below, MENENDEZ and Nadine Menendez received additional bribes, including gold and cash.
Promised Actions Seeking to Disrupt the NJAG Criminal Case
Also in 2019, HANA and Uribe offered to help buy a new Mercedes-Benz C-300 convertible worth more than $60,000 for MENENDEZ and Nadine Menendez. In exchange, MENENDEZ agreed and sought to interfere in the NJAG’s criminal insurance fraud prosecution of an associate of Uribe and a related investigation involving an employee of Uribe. On multiple occasions in 2019, Uribe, HANA, and/or Nadine Menendez briefed MENENDEZ regarding the NJAG’s insurance fraud prosecution and investigation. Following those briefings, and in exchange for the promise of the luxury convertible, MENENDEZ contacted the then-New Jersey Attorney General (“Official-2”) at least twice. During those communications, MENENDEZ attempted to pressure Official-2 to resolve the prosecution more favorably to Uribe’s associate. Official-2 considered MENENDEZ’s actions inappropriate, did not agree to intervene, and did not pass on that MENENDEZ had contacted him in order to insulate his staff against any outside influence from MENENDEZ. Ultimately, in the regular course, the prosecution was resolved with a plea allowing for no jail time for Uribe’s associate and the investigation never resulted in any charges against Uribe’s employee.
In exchange for MENENDEZ’s agreed and promised actions, Uribe provided Nadine Menendez with $15,000 cash for the down payment on the luxury convertible in April 2019. Thereafter, Uribe made monthly payments to Mercedes-Benz for the convertible between 2019 and June 2022. Uribe only stopped making those monthly payments after the FBI approached MENENDEZ, Nadine Menendez, and Uribe in connection with this investigation.
Promised Actions Seeking to Disrupt the USAO-DNJ Criminal Case and to Benefit DAIBES and the Government of Qatar
In October 2018, the USAO-DNJ charged DAIBES with federal criminal charges for obtaining loans under false pretenses from a New Jersey-based bank he founded. Between December 2020 and 2022, MENENDEZ agreed and promised to attempt to influence the pending federal prosecution of DAIBES in exchange for cash, furniture, and gold bars that DAIBES provided to MENENDEZ and Nadine Menendez. In furtherance of this aspect of the scheme, MENENDEZ recommended that the then-President nominate an individual (“Official-3”) as U.S. Attorney for the District of New Jersey whom MENENDEZ believed he could influence with respect to DAIBES’s case. MENENDEZ requested a political advisor contact Official-3 in an attempt to influence the outcome of DAIBES’s case.
MENENDEZ’s political advisor did not contact Official-3 regarding DAIBES’s case, and USAO-DNJ did not treat the case any differently as a result of MENENDEZ’s actions. The parties to DAIBES’s case agreed to resolve the case with a plea agreement that provided for a probationary sentence. In exchange for MENENDEZ’s participation in the bribery scheme, DAIBES provided MENENDEZ and Nadine Menendez with multiple things of value, including two one-kilogram gold bars.
In addition, in exchange for some of the gold and other things of value from DAIBES, MENENDEZ knew that DAIBES also expected MENENDEZ to take action to benefit the Government of Qatar, and thereby benefit DAIBES, who was seeking millions of dollars in investment from a fund with ties to the Government of Qatar. Among other things, MENENDEZ made multiple public statements supporting the Government of Qatar and provided DAIBES with these statements so that DAIBES could share them with Qataris officials connected to an investment fund with which DAIBES was looking to do business. For example, on or about August 20, 2021, MENENDEZ used an encrypted messaging application to send DAIBES the text of a press release in which MENENDEZ praised the Government of Qatar, and several minutes later texted DAIBES, “You might want to send to them. I am just about to release.”
Obstruction of Justice and Attempts to Cover-Up the Scheme
In or about 2022, following service of subpoenas issued by a federal grand jury sitting in the Southern District of New York on MENENDEZ, Nadine Menendez, Uribe, and IS EG Halal, Nadine Menendez met with Uribe. At that meeting, Nadine Menendez and Uribe agreed that if law enforcement asked about the payments Uribe had made for the Mercedes-Benz convertible, they would falsely say those payments had been a loan. Later, in or about December 2022, MENENDEZ and Nadine Menendez sought to return both the bribe money that HANA had caused IS EG Halal to pay to the mortgage company in July 2019 to avoid foreclosure on Nadine Menendez’s home and the payments Uribe made for the convertible, and, in doing so, MENENDEZ and Nadine Menendez falsely characterized the return of the bribe money as repayments for loans in documents that were produced to the grand jury. The next year, in September 2023, in an attempt to avoid charges being brought, MENENDEZ caused his then-counsel to give a presentation at the United States Attorney’s Office for the Southern District of New York in Manhattan falsely stating that MENENDEZ had been unaware of the mortgage and car payments until receipt of the subpoenas in 2022, and that these payments from HANA and Uribe were loans, even though MENENDEZ knew such statements to be false.
* * *
A chart containing the names of the defendants, the charges they were convicted of, and the sentences they received is set forth below.
Uribe, 57, of Clifton, New Jersey, previously pled guilty pursuant to a cooperation agreement to conspiracy to commit bribery, conspiracy to commit honest services wire fraud, honest services wire fraud, conspiracy to commit obstruction of justice, obstruction of justice, tax evasion, and wire fraud. Sentencing for Uribe is scheduled for April 24, 2025.
Charges remain pending against Nadine Menendez, who is presumed innocent and is scheduled to go to trial on March 18, 2025.
Ms. Sassoon praised the outstanding investigative work of the FBI. Ms. Sassoon also thanked the Internal Revenue Service-Criminal Investigation for its invaluable assistance on the investigation and the Department of Justice’s National Security Division, Counterintelligence and Export Control Section for its support of the case.
This case is being handled by the Office’s Public Corruption Unit. Assistant U.S. Attorneys Eli J. Mark, Paul M. Monteleoni, Lara Pomerantz, Daniel C. Richenthal, and Catherine Ghosh, and Special Assistant U.S. Attorney Christina Clark, are in charge of the prosecution, with the assistance of Paralegal Specialists Arjun Ahuja, Jayda Foote, and Braden Florczyk, and former Paralegal Specialists Connor Hamill and Rachel Wechsler.
DefendantAgeConvictionsSentenceROBERT MENENDEZ71
Conspiracy to commit bribery, conspiracy to commit honest services wire fraud, conspiracy to commit extortion under color of official right, two counts of conspiracy to obstruct justice, two counts of bribery, three counts of honest services wire fraud, three counts of extortion under color of official right, conspiracy for a public official to act as a foreign agent, public official acting as foreign agent, and obstruction of justice.[2]11 years; $922,188.10 forfeitureWAEL HANA, a/k/a “Will Hana”41
Conspiracy to commit bribery, conspiracy to commit honest services wire fraud, bribery, two counts of honest services wire fraud, and conspiracy for a public official to act as a foreign agent.[3]97 months in prison; $1,250,000 fine; $125,000 forfeitureFRED DAIBES67
Conspiracy to commit bribery while released on bail, conspiracy to commit honest services wire fraud while released on bail, conspiracy to obstruct justice, two counts of bribery while released on bail, two counts of honest services wire fraud while released on bail.7 years in prison; $1,750,000 fine[1] With respect to Nadine Menendez, against whom charges remain pending, the entirety of the text of the Indictment and the description of the Indictment set forth herein constitute only allegations, and every fact should be treated as an allegation.
[2] The Court ruled that MENENDEZ’s conspiracy for a public official to act as a foreign agent charge was subsumed by the bribery conspiracy count, and did not impose a separate sentence for it.
[3] As with MENENDEZ, the Court ruled that HANA’s conspiracy for a public official to act as a foreign agent charge was subsumed by the bribery conspiracy count, and did not impose a separate sentence for it.
Former High-Ranking FDNY Official Pleads Guilty to Bribery ConspiracyRead the Press Release
Danielle R. Sassoon, the United States Attorney for the Southern District of New York, announced that ANTHONY SACCAVINO pled guilty today to conspiring to solicit and receive bribes in his role as Chief of the New York City Fire Department (“FDNY”) Bureau of Fire Prevention (“BFP”). SACCAVINO pled guilty before U.S. District Judge Lewis J. Liman and is scheduled to be sentenced on May 14, 2025.
U.S. Attorney Danielle R. Sassoon said: “Anthony Saccavino betrayed the City agency he was chosen to lead by repeatedly selling access to the Bureau of Fire Prevention’s services in a pay-to-play bribery scheme. This Office will continue to ensure that City officials who place their own interests above those of the public will be held accountable.”
According to the Indictment, plea agreement, and statements made in court:
From 2021 to 2023, SACCAVINO repeatedly abused his position as a Chief of the BFP by participating in a scheme to solicit and receive $190,000 in total bribe payments from a former FDNY firefighter named Henry Santiago, Jr. In exchange for those bribe payments, SACCAVINO used his authority within the BFP to improperly “expedite” BFP inspections and plan reviews for Santiago’s customers. SACCAVNO personally profited $57,000 as part of this scheme. To carry out this conspiracy, SACCAVINO lied to his BFP subordinates to justify otherwise improper expediting requests. SACCAVINO also lied to law enforcement when interviewed about his involvement in the scheme.
If you believe you have information related to bribery, fraud, or any other illegal conduct by FDNY or BFP employees, please contact [email protected] or (212) 825-2402. If you were involved in such conduct, please consider self-disclosing through the SDNY Whistleblower Pilot Program at [email protected].
* * *
SACCAVINO, 59, of New York, New York, pled guilty to one count of conspiracy to solicit and receive a bribe, which carries a maximum sentence of five years in prison. Under the terms of his plea agreement, SACCAVINO agreed to forfeit $57,000.
The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Ms. Sassoon praised the outstanding work of the Federal Bureau of Investigation and the New York City Department of Investigation.
This case is being handled by the Office’s Public Corruption Unit. Assistant U.S. Attorneys Jessica Greenwood, Matthew King, and Daniel H. Wolf are in charge of the prosecution.
Defendant Extradited to Face Charges Related to International Bank Fraud and Money Laundering Ring That Caused over $60 Million in LossesRead the Press Release
Danielle R. Sassoon, the United States Attorney for the Southern District of New York, and Patrick J. Freaney, the Special Agent in Charge of the New York Field Office of the United States Secret Service (“USSS”), announced today that ERICK JASON VICTORIA-BRITO was extradited from the Dominican Republic and will appear in a federal courtroom in Manhattan later today. VICTORIA-BRITO is charged in a two-count Indictment with conspiring to commit bank fraud and money laundering from December 2017 through November 2022. In connection with the scheme, VICTORIA-BRITO and other members of the charged conspiracy registered over 1,000 fake businesses, used those fake businesses to open bank accounts to receive money stolen through business e-mail compromise schemes, and then laundered that money. Members of the conspiracy caused over $60 million in actual losses and attempted to steal over $150 million.
U.S. Attorney Danielle R. Sassoon said: “As we allege, Erick Jason Victoria-Brito and his co-conspirators ran an international bank fraud and money laundering scheme designed to help carry out business email compromise scams. These scams cause significant harm to businesses, nonprofits, and even local governments. As the successful extradition of Erick Jason Victoria-Brito shows, this Office and our partners will not rest until every individual responsible is held accountable.”
USSS Special Agent in Charge Patrick J. Freaney said: “This alleged scheme rained down financial ruin upon unwitting businesses and individuals. While the suspects operated with impunity across the nation and beyond, the U.S. Secret Service and its partners remained steadfast in building a strong case — no matter where the evidence took them. I commend the investigators and prosecutors for their commitment to disrupting this type of insidious fraud on behalf of all those victimized by it.”
As alleged in the Indictment, Superseding Indictments, and court filings:[1]
From at least December 2017 through at least November 2022, a group of individuals perpetrated a massive, international bank-fraud and money-laundering scheme (the “Fraud and Money Laundering Scheme”) designed to obtain and launder the proceeds of business e-mail compromise schemes. In a business email compromise scheme, a scheme member fraudulently induces a company or individual to send money to a bank account controlled by that scheme member or the scheme member’s compatriots.
The Fraud and Money Laundering Scheme operated across borders and preyed on businesses large and small. Between 2020 and 2021 alone, participants in the scheme stole tens of millions of dollars, targeting victims that included a major American sports organization, a publicly traded healthcare company, and a prominent international nonprofit organization, along with multiple city governments, law firms, construction companies, and investment funds. Participants in the Fraud and Money Laundering Scheme registered over 1,000 fake businesses, then used those businesses to open bank accounts. Those bank accounts then received the proceeds of business email compromise schemes. Once the stolen funds reached those fraudulent bank accounts, participants in the Fraud and Money Laundering Scheme worked quickly to take advantage of the international banking system by either withdrawing the money or helping to launder it by wiring it to overseas banks, thereby preventing victims from recouping their losses. The co-conspirators accomplished that primarily by wiring stolen money to banks in China, outside the reach of American banks. During the course of the charged conduct, members of the conspiracy participated in inflicting over $60 million in actual losses and attempted to inflict losses of over $150 million.
* * *
VICTORIA-BRITO, 30, of Hollywood, Florida, is charged with one count of conspiracy to commit bank fraud, which carries a maximum sentence of 30 years in prison, and one count of conspiracy to commit money laundering, which carries a maximum sentence of 20 years in prison.
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by a judge.
Ms. Sassoon praised the outstanding investigative work of the New York City Police Department, USSS, U.S. Postal Inspection Service, and Homeland Security Investigations. Ms. Sassoon further thanked the U.S. Treasury Inspector General for Tax Administration, the Federal Bureau of Investigation, and Internal Revenue Service-Criminal Investigations for their assistance. The Justice Department’s Office of International Affairs provided significant assistance in securing the extradition from the Dominican Republic of Victoria-Brito.
This case is being handled by the Office’s General Crimes Unit. Assistant U.S. Attorneys Thomas S. Burnett and Amanda C. Weingarten are in charge of the prosecution.
The charges contained in the Indictment and Superseding Indictments are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and Superseding Indictment, and the description of the Indictment and Superseding Indictment set forth herein, constitute only allegations, and every fact described herein should be treated as an allegation.
New Jersey Man Pleads Guilty to Attempting to Provide Material Support to Al ShabaabRead the Press Release
Danielle R. Sassoon, the United States Attorney for the Southern District of New York, announced today that KARREM NASR, a/k/a “Ghareeb Al-Muhajir,” pled guilty to attempting to provide material support to al Shabaab, a designated foreign terrorist organization before U.S. District Judge Analisa Torres.
U.S. Attorney Danielle R. Sassoon said: “Karrem Nasr devoted himself to waging violent jihad against America and its allies. Inspired by the evil terrorist attack perpetrated by Hamas on October 7, 2023, Nasr, a U.S. citizen, traveled from Egypt to Kenya in an effort to join al Shabaab so that he could execute his jihadist mission of creating death and destruction. Now, instead of perpetrating a deadly attack in the name of a foreign terrorist group, Nasr resides in federal prison. I thank the career prosecutors of my office and our law enforcement partners for their extraordinary work in disrupting this plan and bringing a terrorist to justice.”
According to the allegations in the court filings and statements made in Court:
NASR is a 24-year-old U.S. citizen who moved from New Jersey to Egypt in or about July 2023. Starting in at least in or about November 2023, NASR repeatedly expressed his desire and plans to join al Shabaab, a designated foreign terrorist organization that has attacked Americans and American allies around the world, and wage jihad, including in communications with an FBI confidential source (the “CS”), who was posing as a facilitator for terrorist organizations.[1]
In communications exchanged with the CS and postings that NASR made online, NASR stated that he had been thinking about engaging in jihad for a long time, and he was particularly motivated to become a jihadi by the October 7, 2023, Hamas terrorist attack in Israel. For example, in communications with the CS, NASR stated that the number one enemy was “evil America,” which he called the “head of the snake.” In social media posts, NASR warned that “Jihad” was “coming soon to a US location near you,” posting airplane, bomb, and fire emojis:
In further communications with the CS, NASR expressed his intent to join al Shabaab to receive military training and engage in jihad, that he was prepared to kill and be killed, and that he specifically aspired to be a martyr for the jihadist cause. For example, NASR stated “I would like to become a martyr in the sake of Allah. . . . I think in coming years, inshallah we are going to see here big events in Egypt and the other Arab countries. Inshallah if this happens; I will come back to Egypt, inshallah to help the Muslims in Egypt in their struggle to establish here in Egypt.”
Beyond his online postings and communications with the CS, NASR took specific and targeted steps in his effort to join and receive military training from al Shabaab. Among other things, NASR made flight and lodging reservations for travel to Kenya, where he planned to meet members of al Shabaab for further travel to Somalia to join and train with the terrorist group. In addition, the day before his flight, NASR told the CS that he planned to delete data from his cellphone and computer to ensure that if he were detained, law enforcement would not be able to recover evidence of his jihadist activities from those devices. On December 14, 2023, as planned, NASR flew from Egypt to Kenya, where he then planned to transit into Somalia to join and train with al Shabaab. Later that day, NASR was taken into custody by Kenyan authorities. On December 28, 2023, NASR arrived in the U.S.
* * *
NASR, 24, of Lawrenceville, New Jersey, pled guilty to attempting to provide material support to a designated foreign terrorist organization, which carries a maximum sentence of 20 years in prison. NASR is scheduled to be sentenced by Judge Torres on June 30, 2025.
The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.
Ms. Sassoon praised the outstanding efforts of the Federal Bureau of Investigation (“FBI”)’s New York Joint Terrorism Task Force, which principally consists of agents from the FBI and detectives from the New York City Police Department. Ms. Sassoon also thanked the FBI’s Legal Attaché Office in Nairobi, Kenya, the Counterterrorism Section of the Department of Justice’s National Security Division, the Department of Justice’s Office of International Affairs, and the Kenyan Directorate of Criminal Investigations, including the Anti-Terrorism Police Unit and the Joint Terrorism Task Force-Kenya, for their assistance.
This case is being handled by the Office’s National Security and International Narcotics Unit. Assistant U.S. Attorneys Camille L. Fletcher, Kimberly J. Ravener, and Stephen Ritchin are in charge of the prosecution, with assistance from Trial Attorney Jennifer Burke of the Counterterrorism Section.
[1] Communications referenced herein are described in substance and in part.
Kucoin Pleads Guilty to Unlicensed Money Transmission Charge and Agrees to Pay Penalties Totaling Nearly $300 MillionRead the Press Release
Danielle Sassoon, the United States Attorney for the Southern District of New York, announced that PEKEN GLOBAL LIMITED (“PEKEN”), a Seychelles-based entity that, since at least September 2019, has operated KuCoin, one of the largest cryptocurrency exchanges in the world, pled guilty today to one count of operating an unlicensed money transmitting business. KuCoin flouted U.S. anti-money laundering laws by failing to implement effective anti-money laundering (“AML”) and know-your-customer (“KYC”) programs designed to prevent KuCoin from being used for money laundering and terrorist financing, failing to report suspicious transactions, and failing to register with the U.S. Department of Treasury’s Financial Crimes Enforcement Network (“FinCEN”). In connection with today’s guilty plea, PEKEN agreed to pay monetary penalties totaling more than $297 million. PEKEN further agreed that KuCoin will exit the U.S. market for at least the next two years, and that two of KuCoin’s founders, Chun Gan, a/k/a “Michael,” and Ke Tang, a/k/a “Eric,” who were indicted along with Peken in March 2024, will no longer have any role in KuCoin’s management or operations.
U.S. Attorney Danielle R. Sassoon said: “For years, KuCoin avoided implementing required anti-money laundering policies designed to identify criminal actors and prevent illicit transactions. As a result, KuCoin was used to facilitate billions of dollars’ worth of suspicious transactions and to transmit potentially criminal proceeds, including proceeds from darknet markets and malware, ransomware, and fraud schemes. Today’s guilty plea and penalties show the cost of refusing to follow these laws and allowing unlawful activity to continue.”
According to admissions and court documents, KuCoin was founded in or about September 2017. Since its founding in 2017, KuCoin has become one of the largest global cryptocurrency exchange platforms, with more than 30 million customers and billions of dollars’ worth of cryptocurrency in daily trading volume. Between in or about September 2017 and in or about March 2024, the date of the Indictment, KuCoin served approximately 1.5 million registered users who were located in the U.S., and earned at least approximately $184.5 million in fees from those U.S. registered users.
KuCoin’s exchange platform allows registered users to place orders for spot trades in cryptocurrencies, including Bitcoin, Ethereum, and others, and orders for derivative products, including futures contracts, tied to the value of Bitcoin and other cryptocurrencies. As a result of its operation of this business, KuCoin has, at all relevant times, been a money transmitting business required to register with FinCEN and reported suspicious transactions. As a money transmitting business, KuCoin was required to comply with applicable Bank Secrecy Act provisions requiring maintenance of an adequate AML program, including conducting KYC processes. AML and KYC programs ensure that financial institutions, such as KuCoin, do not become havens for money laundering and other criminal actors.
Despite these obligations and its substantial presence in the U.S. market, KuCoin failed to implement an adequate KYC program. Indeed, until at least July 2023, KuCoin did not require customers to provide any identifying information. KuCoin employees repeatedly stated on public social media sites that KYC was not mandatory on KuCoin, including in response to posts from customers who had identified themselves as being in the U.S. It was only in August 2023 that KuCoin adopted a mandatory KYC program for new customers and existing customers who wanted to continue to actively participate in KuCoin’s services. However, KuCoin did not impose this necessary KYC process on existing customers that wanted to continue to use KuCoin’s services only to withdraw or close positions, which it was required to do. KuCoin also never registered with FinCEN as a money transmitting business or filed any required suspicious activity reports.
As a result of KuCoin’s failure to maintain the required AML and KYC programs, KuCoin was used to transmit billions in suspicious transactions and potentially criminal proceeds, including proceeds from darknet markets and malware, ransomware, and fraud schemes.
Today the department also agreed to defer prosecution against KuCoin’s two indicted co-founders, Gan and Tang, for a period of two years.
* * *
In addition to the guilty plea, PEKEN, a Seychelles-based entity, also agreed to criminally forfeit $184.5 million and pay a criminal fine of approximately $112.9 million. Additionally, Gan and Tang have each agreed to forfeit approximately $2.7 million in funds received as a result of KuCoin’s operations in the U.S.
Ms. Sassoon praised the outstanding investigative work of the El Dorado Task Force in the New York Field Office of Homeland Security Investigations and assistance provided by HSI Pretoria, South Africa.
This matter is being handled by the Office’s Illicit Finance & Money Laundering Unit. Assistant U.S. Attorneys Emily Deininger and David R. Felton are in charge of the prosecution.
Eleven Members of Bronx “Washside” Gang Sentenced for Murder, Attempted Murder, Assault, Racketeering, and Firearms OffensesRead the Press Release
Danielle R. Sassoon, the United States Attorney for the Southern District of New York, announced the sentencing of YAUREL CENTENO, a/k/a “Flex,” the last of 11 defendants to be sentenced in a case involving members of a street gang known as “WashSide” or “Wash” in the Bronx, New York. CENTENO was sentenced to 24 years in prison for crimes relating to his membership in WashSide, including the murder of 20-year-old Tyrone Almodovar on June 26, 2020, and the gunpoint robbery of a pawnshop on June 27, 2020. CENTENO also participated in a crime spree in 2020 comprised of dozens of other robberies and larcenies stretching across more than 10 states between Maine and Alabama. CENTENO previously pled guilty to conspiracy to commit racketeering and conspiracy to commit murder in aid of racketeering on February 2, 2024, before U.S. District Judge Jesse M. Furman, who imposed today’s sentence.
U.S. Attorney Danielle R. Sassoon said: “The WashSide gang terrorized neighborhoods in the Bronx and beyond by killing, shooting, slashing, and robbing people. Together with our law enforcement partners, we have now held WashSide’s members accountable not only for the murder of Tyrone Almodovar, a senseless killing, but for countless other crimes committed by the gang all across the country. We will not let violent gangs continue to endanger the welfare of New Yorkers.”
According to the Superseding Indictment and Informations, public court filings, and statements made in court:
From at least 2015 to 2022, the members of “WashSide” or “Wash,” a criminal enterprise based in the Bronx, New York, committed multiple acts of violence against members of rival street gangs and others. To make money for the gang, protect the gang’s territory, and promote the gang’s standing, members of WashSide engaged in, among other things, armed robberies and carjackings, drug trafficking, wire fraud, and violence, including murder, attempted murder, and assaults with dangerous weapons. The members of WashSide also travelled outside New York City and New York State, robbing and stealing from stores across the Northeast, Mid-Atlantic, Midwest, and Southeast, principally during the height of the pandemic in 2020. For years, WashSide engaged in disputes with rival crews in the Bronx, which resulted in numerous acts of violence. Among their violent crimes were the following offenses.
On June 26, 2020, following a car chase, Boss Terrell, a/k/a “Sauce,” Centeno, Lydell Seymore, a/k/a “Bugout,” and Darrell Spencer, a/k/a “Rell,” shot and killed Tyrone Almodovar.
On June 27, 2020, CENTENO, Isaiah Thomas, a/k/a “Zay,” a/k/a “Chicago,” Jacob Baker, and Tyshawn Brogdon, a/k/a “Shawn,” participated in the gunpoint robbery of a pawnshop, in which multiple victims were struck with a firearm or had a firearm held up to their heads.
On July 29, 2020, TERRELL shot at rival gang members.
On August 18, 2020, CENTENO robbed an electronics store, cutting open the hand of an employee who attempted to resist him.
On June 13, 2021, Noel Carr, a/k/a “Noey,” participated in the assault of a rival gang member who was slashed with a knife.
On September 17, 2021, BROGDON and BAKER committed an armed carjacking at an auto shop, crashing the stolen car almost immediately as an employee was dragged alongside it.
On August 21, 2021, THOMAS, BAKER, and Antwan Mosley, a/k/a “Ant,” committed a drive-by shooting that targeted rival gang members but injured two innocent teenage bystanders.
On December 30, 2021, SEYMORE and Mamadou Diallo, a/k/a “Haji,” a/k/a “Aladje,” committed another armed carjacking, seizing a car at gunpoint from a driver whom they also stripped of much of his clothing in the middle of winter.
On August 19, 2022, BAKER and Rasheed Chapman, a/k/a “Ra,” committed another shooting that similarly resulted in an innocent bystander being struck in the chest.
* * *
A chart containing the names of the defendants, the charges they were convicted of, and the sentences they received is set forth below.
Ms. Sassoon praised the outstanding work of the New York City Police Department and the Drug Enforcement Administration.
The case is being handled by the Office’s Violent and Organized Crime Unit. Assistant U.S. Attorneys Courtney L. Heavey and Thomas John Wright are in charge of the prosecution.
DefendantAgeConvictionsSentenceBoss Terrell,
a/k/a “Sauce”
23Conspiracy to Commit Murder in Aid of Racketeering and Attempted Murder and Assault with a Dangerous Weapon in Aid of Racketeering22 YearsYAUREL CENTENO,
a/k/a “Flex”
23Racketeering Conspiracy and Conspiracy to Commit Murder in Aid of Racketeering24 YearsLydell Seymore,
a/k/a “Bugout”
20Racketeering Conspiracy and Interstate Transportation of Stolen Goods20 YearsDarrell Spencer,
a/k/a “Rell”
26Racketeering Conspiracy16 YearsIsaiah Thomas,
a/k/a “Zay,”
a/k/a “Chicago”
25Attempted Murder and Assault with a Dangerous Weapon in Aid of Racketeering, Use of a Firearm for a Crime of Violence16 YearsJacob Baker20Racketeering Conspiracy and Use of a Firearm for a Crime of Violence200 MonthsTyshawn Brogdon,
a/k/a “Shawn”
21Racketeering Conspiracy and Use of a Firearm for Carjacking and Robbery100 MonthsRasheed Chapman,
a/k/a “Ra”
20Attempted Murder and Assault with a Dangerous Weapon in Aid of Racketeering and Use of a Firearm for a Crime of Violence150 MonthsMamadou Diallo,
a/k/a “Haji,”
a/k/a “Aladje”
24Racketeering Conspiracy7 YearsAntwan Mosley,
a/k/a “Ant”
22Attempted Murder and Assault with a Dangerous Weapon in Aid of Racketeering and Use of a Firearm for a Crime of Violence10 YearsNoel Carr,
a/k/a “Noey,”
23Assault with a Dangerous Weapon in Aid of Racketeering and Aggravated Identity Theft70 MonthsOrange County Man Sentenced to 75 Months for Distributing Methamphetamine and Selling Illegal Pills on the Dark WebRead the Press Release
Danielle R. Sassoon, the United States Attorney for the Southern District of New York, announced today that KYLE WEILAND, who operated an illegal pill and narcotics manufacturing business on the dark web, was sentenced by U.S. District Judge Cathy Seibel to 63 months in prison, along with a consecutive 12-month prison term for violating the terms of his supervised release for a previous, similar offense. In September 2024, WEILAND pled guilty to distributing methamphetamine and selling misbranded drugs.
U.S. Attorney Danielle R. Sassoon said: “In 2019, Kyle Weiland was convicted for selling illegal pills online. After serving his prison term and while still on supervised release, he returned to his illegal drug business. Weiland manufactured dangerous pills, including those containing methamphetamine, that he sold on the dark web to customers throughout the United States. But, just as before, Weiland was caught. This sentence sends a clear message that selling illegal pills does not pay and will be met with serious prison sentences. We will not tolerate the illegal sale of narcotics and other addictive substances into the community, whether those sales take place on the street or the dark web.”
WEILAND admitted that he manufactured, sold on the dark web, and shipped to customers throughout the U.S., various pills that contained or were marketed as methamphetamine, amphetamine, oxycodone, various benzodiazepines, or analogs of these substances. WEILAND agreed to forfeit $2,093,887.72, including $21,341.00 in cash; a 2008 Maserati GranTurismo; a 2013 Maserati GranTurismo; a 2019 McLaren 570S; and various cryptocurrencies.
WEILAND was previously convicted in 2019 for selling illegal pills online and was sentenced to six months in prison followed by three years supervised release. He committed the instant offense while serving his term of supervised release.
* * *
In addition to the prison term, WEILAND, 36, of Tuxedo Park, New York, was sentenced to three years of supervised release.
Ms. Sassoon praised the outstanding investigative work of U.S. Drug Enforcement Administration.
This case is being prosecuted by the Office’s White Plains Division. Assistant U.S. Attorneys Shaun E. Werbelow and Justin L. Brooke are in charge of the prosecution.
Hell’s Kitchen Aesthetician Arrested for Unlawfully Injecting Counterfeit BotoxRead the Press Release
Danielle R. Sassoon, the United States Attorney for the Southern District of New York, announced the unsealing of a Complaint charging JOEY GRANT LUTHER with wire fraud, smuggling, and other crimes related to misbranded and counterfeit drugs. As alleged in the Complaint, from in or about April 2023 through at least in or about July 2024, LUTHER shipped counterfeit drugs, including counterfeit Botox, from countries in Asia, including China, and injected them, without the required license, into his clients at his medical spa, JGL Aesthetics. None of the counterfeit Botox that LUTHER injected was approved for sale or dispensing in the U.S. by the FDA. LUTHER was arrested this morning and will be presented later today before U.S. Magistrate Judge Sarah L. Cave.
U.S. Attorney Danielle R. Sassoon said: “As alleged, Joey Grant Luther, who does not possess the licensing required by New York State to perform injections of Botox, knowingly purchased counterfeit Botox from China, injected it into his clients, and represented that the counterfeit Botox that he was peddling was genuine. Luther continued to purchase and inject the counterfeit Botox even after he learned that clients had fallen ill or experienced strange symptoms after Luther injected them. Luther’s disregard for the health of his clients put all of his victims in harm’s way and, in some cases, caused life-threating injuries. Luther will now face criminal charges for this conduct.”
As alleged in the Complaint:[1]
From at least in or about January 2021 through at least in or about July 2024, LUTHER ran a medical spa called JGL Aesthetics in the Hell’s Kitchen neighborhood of Manhattan. In or about September 2021, an individual (“Victim-1”) went to JGL Aesthetics to receive Botox treatments to treat excessive sweating as well as fine lines on her face. Victim-1 learned that LUTHER performed Botox injections from a friend. Between in or about September 2021 and in or about February 2024, LUTHER injected counterfeit drugs labeled as Botox® 150 Units manufactured by Allergan into Victim-1’s armpit, forehead, and face on approximately eight occasions. Victim-1 never provided LUTHER with a prescription to receive Botox injections.
On or about February 27, 2024, LUTHER injected Counterfeit Botox into Victim-1’s armpits and eyebrow area at JGL Aesthetics. Approximately three days after Victim-1’s February 27, 2024, visit to JGL Aesthetics, Victim-1 began experiencing double vision, light headedness, difficulty swallowing and chewing, heart palpitations, and slurring of speech. Victim-1 also could not lift her arms and experienced weakness from the waist up. Victim-1 went to three hospitals to seek medical assistance for these symptoms. On or about March 20, 2024, Victim-1 was diagnosed with Botulism toxin.
From between in or about April 2023 and in or about January 2024, U.S. Customs and Border Patrol (“CBP”) seized parcels intended for JGL Aesthetics, including one which lists a return address in Hong Kong. These parcels contained significant quantities of counterfeit drugs, including Counterfeit Botox. Below is a photo of the contents of the parcel—including the exterior of cartons of Counterfeit Botox.
From at least in or about March 2024 through at least in or about April 2024, during which time LUTHER negotiated an additional purchase of Counterfeit Botox from one of his suppliers, multiple individuals who received injections of Counterfeit Botox from LUTHER messaged LUTHER about the negative side effects from the injections, including lazy eyes, double vision, and drooping eyelids. In response to these complaints, LUTHER typically assured his clients that the side effects were temporary, represented that he was unaware that counterfeit Botox had been found circulating in the U.S., and assured clients that the Counterfeit Botox was from Allergan, the veritable maker. As alleged, LUTHER was well aware that the Counterfeit Botox was, in fact, counterfeit.
Neither CBP’s seizure of packages intended for LUTHER, the defendant, nor his clients informing LUTHER of injuries related to his injecting Counterfeit Botox stopped LUTHER from continuing to procure the Counterfeit Botox and injecting it into his clients. Between March 13, 2024—the date that Victim-1 contacted LUTHER about the injections of Counterfeit Botox—and October 2, 2024—after law enforcement officers and special agents executed a search warrant of JGL Aesthetics, JGL Aesthetics had at least approximately 700 appointments logged in its client and service management application that were coded with having provided Botox-related services. Data contained in the client and services management application also revealed that JGL Aesthetics provided Botox-related services as early as January 2021.
* * *
LUTHER, 54, of New York, New York, is charged with one count of wire fraud, which carries a maximum sentence of 20 years in prison; one count of dispensing of a misbranded drug while held for sale, which carries a maximum sentence of one year in prison; one count of holding counterfeit drugs for sale and for dispensing, which carries a maximum sentence of 10 years in prison; one count of receiving misbranded drugs in interstate commerce and delivery or proffered delivery thereof, which carries a maximum sentence of three years in prison; and one count of smuggling, which carries a maximum sentence of 20 years in prison.
The minimum and maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.
Ms. Sassoon praised the outstanding investigative work of the Food and Drug Administration Office of Criminal Investigations, the Federal Bureau of Investigation, the CBP – New York Field Office, and the Special Agents and Task Force Officers assigned to the U.S. Attorney’s Office for the Southern District of New York.
This case is being handled by the Office’s Narcotics Unit. Assistant U.S. Attorney Brandon C. Thompson is in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth herein, constitute only allegations, and every fact described herein should be treated as an allegation.