Southern District of New York

Damian Williams, the United States Attorney for the Southern District of New York, announced that WILLIAM WASHINGTON was sentenced today to five years in prison for his participation in a scheme to defraud the National Basketball Association (“NBA”) Players’ Health and Welfare Benefit Plan (the “Plan”).  WASHINGTON was convicted on June 28, 2024, following a one-week jury trial and was sentenced today by U.S. District Judge Valerie E. Caproni.

U.S. Attorney Damian Williams said: “William Washington, a licensed medical doctor, had a solemn responsibility not to abuse his position of trust.  Instead, Washington used his license and his clinics to generate fraudulent invoices for medical services he never performed.  Over just one year, Washington pocketed nearly a half-million dollars for himself and his co-conspirators.  Today’s sentence sends a clear message that those who engage in health care fraud schemes, particularly medical providers, will face stringent penalties.”

According to the Indictment and the evidence at trial:

From approximately in or about 2019 through July 2020, WASHINGTON, a licensed medical doctor who operated medical clinics located in the Seattle, Washington-area, participated in a scheme with retired NBA players to defraud the Plan.  In furtherance of the scheme, WASHINGTON generated fraudulent invoices purporting to document nearly $500,000 worth of medical services that he never provided – such as $10,000 office visits and $25,000 shoulder injections – and repeatedly lied to the Plan by claiming that he had performed those services.    WASHINGTON also swiped Plan-issued debit cards to collect money on these fake invoices. As a result of these debit card swipes, WASHINGTON received over $450,000 from the Plan, which he cashed out and distributed to his co-conspirators.   

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In addition to the prison sentence, WASHINGTON, 47, of Seattle, Washington, was sentenced to three years of supervised release and ordered to pay a $20,000 fine, forfeit $475,042, and pay restitution in the amount of $475,042.

Mr. Williams praised the outstanding investigative work of the Federal Bureau of Investigation.

This case is being handled by the Office’s Complex Frauds and Cybercrime Unit.   Assistant U.S. Attorneys Rushmi Bhaskaran, Qais Ghafary, and Rebecca Delfiner represented the Government at trial.  Assistant U.S. Attorneys Ryan Finkel and Daniel G. Nessim participated in the investigation and prosecution of this case. 

Damian Williams, the United States Attorney for the Southern District of New York; Jocelyn E. Strauber, the Commissioner of the New York City Department of Investigation (“DOI”); William S. Walker, the Special Agent in Charge of the New York Field Office of Homeland Security Investigations (“HSI”); Vicky Vazquez, the Special Agent in Charge of the U.S. Department of Housing and Urban Development, Office of Inspector General (“HUD OIG”); and Jonathan Mellone, the Special Agent in Charge of the Northeast Region of the U.S. Department of Labor’s Office of Inspector General (“DOL-OIG”), announced that HECTOR COLON, a former New York City Housing Authority (“NYCHA”) superintendent, was convicted today of bribery and extortion under color of official right for taking thousands of dollars from contractors in exchange for awarding those contractors no-bid contracts or approving payment on previously awarded contracts at NYCHA developments for approximately three years.  The verdict followed a four-day trial before U.S. District Judge Lewis J. Liman.

U.S. Attorney Damian Williams said: “Corruption is an insidious crime—difficult to detect, corrosive in its effect on government agencies, and damaging to the public’s trust in government institutions.  As a NYCHA Superintendent, Hector Colon abused his position of public trust by demanding thousands of dollars of bribes from contractors, betraying his duty to NYCHA residents, the City of New York, and taxpayers.  The jury’s unanimous verdict sends a clear message that those who use their public offices for personal gain will be held accountable.”

DOI Commissioner Jocelyn E. Strauber said: “When public servants demand payoffs from vendors providing services to the New York City Housing Authority, they drive up the cost of those services, diverting valuable resources from the residents of public housing.  Today, this suspended NYCHA employee stands convicted by a jury for this criminal conduct, joining 59 convicted colleagues, among the 70 who have been charged.  And to date, NYCHA has implemented 11 of DOI’s 14 recommendations intended to thwart employees who would use positions of trust to enrich themselves at the expense of New Yorkers that NYCHA serves.  I thank the U.S. Attorney’s Office for the Southern District of New York and our federal law enforcement partners for their commitment to protect public resources and to hold accountable those public servants who abuse their authority.”  

HSI Special Agent in Charge William S. Walker “Today’s guilty verdict — the second successful trial following HSI’s sweeping task force investigation into bribery and extortion amongst NYCHA personnel — underscores the importance of collaboration among law enforcement partners in protecting and serving New Yorkers.  The pervasive corruption exemplified by Colon’s conduct continues to be brought to light, and HSI New York’s Document and Benefit Fraud Task Force is proud to have played a role uncovering the exploitation of an underserved community for personal gain.”

HUD OIG Special Agent in Charge Vicky Vazquez said: “Colon took advantage of his position of trust and engaged in a deplorable bribery and kickback scheme to enrich himself.  Moreover, he violated the fair process for awarding government contracts, putting the integrity of HUD programs at risk.  HUD OIG remains steadfast in its commitment to working with our prosecutorial, law enforcement, and oversight partners to aggressively pursue individuals who engage in activities that jeopardize HUD programs.”

DOL-OIG Special Agent in Charge Jonathan Mellone said: “Suspended NYCHA superintendent Hector Colon abused his position to extort contractors in exchange for no-bid construction contracts that violated the requirements of federal law.  Today’s conviction sends a clear message that public corruption will not be tolerated.  We will continue to work with our law enforcement partners to investigate those who corruptly exploit federally funded governmental programs at the expense of American taxpayers.”

According to the evidence presented in court during the 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.

COLON, a superintendent at multiple NYCHA developments in Manhattan between 2019 and 2021, including Harlem River Houses, Fort Washington Houses, and Drew Hamilton Houses, demanded and received cash in exchange for NYCHA contracts by either requiring contractors to pay up front in order to be awarded the contracts or requiring payment after the contractor finished the work and needed COLON to sign off on the completed job.  COLON typically demanded approximately 10% of the contract value—between $500 and $1,000 depending on the size of the contract—or a flat bribe of $1,000 for signing off on invoices for completed work.  In total, COLON demanded and received thousands of dollars in bribes in exchange for hundreds of thousands of dollars in NYCHA contracts.

Of the 70 individual NYCHA employees charged with bribery and extortion offenses in February 2024, 58 have pled guilty, and two 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].

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COLON, 46, of the Bronx, New York, was convicted of one count of federal program bribery, which carries a maximum sentence of 10 years in prison, and one count of extortion under color of official right, 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 defendant will be determined by the judge.

Mr. Williams 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 DOL-OIG, 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 Jacob R. Fiddelman, Catherine Ghosh, and Jane Kim are in charge of the prosecution, with the assistance of Paralegal Specialists Jayda Foote and Shirel Garzon.

Damian Williams, the 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 Rebecca Weiner, the Deputy Commissioner of Intelligence and Counterterrorism for the New York City Police Department (“NYPD”), announced today that ERALD ALIMEHMETI was arrested in connection with a Complaint charging ALIMEHMETI with attempting to provide material support to the Islamic State of Iraq and al-Sham (“ISIS”) and distributing instructional information regarding the making of explosives.  ALIMEHMETI was presented today before U.S. Magistrate Judge Stewart D. Aaron and ordered detained.

U.S. Attorney Damian Williams said: “As alleged, Erald Alimehmeti distributed—on pro-ISIS channels—dozens of instructional materials, including those he personally created, that describe handling firearms and making specific explosives.  Alimehmeti also allegedly discussed planning and training for terrorist attacks on behalf of ISIS, provided instructions on how to spray explosives on innocent people, and went so far as to claim that ‘it’s time for a genocide.’  I commend our law enforcement partners and this Office’s career prosecutors who worked tirelessly to detect and disrupt Alimehmeti’s alleged terrorist activities.”

FBI Assistant Director in Charge James E. Dennehy said: “Erald Alimehmeti not only allegedly attempted to provide material support to ISIS by trying to recruit and train who he believed to be like minded individuals online, but also repeatedly shared multiple instructions on how to make explosives for use in a terrorist attack.  Thankfully, due to the dedication and determination of the New York Joint Terrorism Force, Alimehmeti was stopped before he could further his evil aims.  The FBI New York, the NYPD, and all law enforcement partners on the JTTF continue to be unrelenting in our mission to protect our country from anyone attempting to cause violence and mayhem in the name of terrorism.”

NYPD Deputy Commissioner Rebecca Weiner said: “As we continue to see, allegedly attempting to provide material support to a designated terrorist organization usually has just one outcome: Arrest.  I commend the NYPD and all the members of the FBI’s New York JTTF, for their unwavering focus on keeping New York City and our nation safe.  In today’s borderless world, public safety demands the level of teamwork that defines this and all of our joint investigations.”

As alleged in the Complaint:[1]

ALIMEHMETI is a U.S. and Albanian citizen and former resident of the Bronx, New York, and moved to Albania in 2014.  ALIMEHMETI was arrested by Albanian authorities and imprisoned in late 2015 to 2019 and again from late 2020 to 2022 for weapons and assault offenses.

Between prison terms, ALIMEHMETI created and used numerous online accounts on encrypted messaging applications and social media websites to communicate with others about planning and training for attacks on behalf of ISIS.  For example, in 2019, ALIMEHMETI expressed interest in “DC sniper” style attacks and referenced an “op” for which he sought the participation of confidential sources, writing, among other things, “Do you know sniping akhi? The formulas and ballistics?” and “I will brief you brothers right before the op, not here akhi. Do you both know how to use red dot optics and how to zero them?”  ALIMEHMETI also requested what he described as “tactical” equipment and “gear” for “training” and “operations” in support of ISIS, including particular models of vests capable of holding “ballistic plates,” “magazine pouches,” and “knives,” and described modifications he intended to make to his “AKM,” an apparent reference to an assault rifle.

In addition, in 2019 and 2020, ALIMEHMETI regularly posted pro-ISIS propaganda online, praising specific ISIS leaders and promoting ISIS-issued publications and videos.  For example, ALIMEHMETI’s social media posts included praise of the ISIS propagandist Shaykh ul-Haqq Musa Cerantonio and the Libyan terrorist and high-ranking al Qaeda official Abu Yahya al-Libi; photographs of various jihadist publications, such as “The Islamic Ruling of the Permissibility of Self-Sacrificial Operations: Suicide, or Martyrdom?” and “The Book of Jihad”; and a video depicting the killing of U.S. Special Forces in Niger and an accompanying comment in Albanian, which translates to: “The Islamic State in Africa killing crusaders, American and French special forces. Look at how the US special forces scream before they die!!! Hahaha!”

ALIMEHMETI also described his work compiling resources on mixing dangerous chemicals and making explosives to a confidential source and discussed how to make specific types of incendiaries to spray at innocent bystanders in a terrorist attack.  On an encrypted messaging channel, ALIMEHMETI posted dozens of links and downloadable documents on topics such as explosives-making, firearms-handling, defensive tactics, and outdoor survival, with comments encouraging the use of these resources.  For example, he posted a video and described it as “a video release from the official media of the Khilafa, explaining how YOU O Muwahid can make TATP explosives in your own home ... SO FIGHT THEM O MUWAHID,” an apparent reference to a well-known ISIS video titled, “You Must Fight Them O Muwahhid,” which provides step-by-step instructions for constructing a TATP-based explosive device and attacking a human target with a knife.

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ALIMEHMETI, 33, of Tirana, Albania, is charged with one count of attempting to provide material support to ISIS, which carries a maximum sentence of 20 years in prison, and one count of distribution of information pertaining to explosives, destructive devices, and weapons of mass destruction in furtherance of a federal crime of violence, 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 defendant will be determined by the judge.

Mr. Williams praised the outstanding investigative work of the FBI’s New York Joint Terrorism Task Force, which consists principally of agents and analysts from the FBI and detectives from the NYPD.  Mr. Williams also thanked Homeland Security Investigations, the Counterterrorism Section of the Department of Justice’s National Security Division, the Office of International Affairs of the Department of Justice’s Criminal Division, and law enforcement partners in Albania and Australia, including the Australian Attorney-General’s Department, for their valuable assistance.

The case is being handled by the Office’s National Security and International Narcotics Unit.  Assistant U.S. Attorneys Nicholas S. Bradley and Jane Y. Chong are in charge of the prosecution, with assistance from Trial Attorney Jessica K. Fender of the Counterterrorism Section.

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 complaint and the description of the complaint set forth herein constitutes only allegations, and every fact described should be treated as an allegation.

A former New York man and dual citizen of the United States and Albania was arrested yesterday in New York on criminal charges related to his alleged involvement in attempting to provide material support to the Islamic State of Iraq and al-Sham (ISIS) and distributing instructional information regarding the making of explosives.

According to court documents, Erald Alimehmeti, 33, of Tirana, Albania, is a former resident of the Bronx, New York, and moved to Albania in 2014. Alimehmeti was arrested by Albanian authorities and imprisoned in late 2015 to 2019 and again from late 2020 to 2022 for weapons and assault offenses.

Between prison terms, Alimehmeti created and used numerous online accounts on encrypted messaging applications and social media websites to communicate with others about planning and training for attacks on behalf of ISIS. For example, in 2019, Alimehmeti expressed interest in “DC sniper” style attacks and referenced an “op” for which he sought the participation of confidential sources, writing, among other things, “Do you know sniping akhi? The formulas and ballistics?” and “I will brief you brothers right before the op, not here akhi. Do you both know how to use red dot optics and how to zero them?” Alimehmeti also requested what he described as “tactical” equipment and “gear” for “training” and “operations” in support of ISIS, including particular models of vests capable of holding “ballistic plates,” “magazine pouches,” and “knives,” and described modifications he intended to make to his “AKM,” an apparent reference to an assault rifle.

In addition, in 2019 and 2020, Alimehmeti regularly posted pro-ISIS propaganda online, praising specific ISIS leaders and promoting ISIS-issued publications and videos. For example, Alimehmeti’s social media posts included praise of the ISIS propagandist Shaykh ul-Haqq Musa Cerantonio and the Libyan terrorist and high-ranking al Qaeda official Abu Yahya al-Libi; photographs of various jihadist publications, such as “The Islamic Ruling of the Permissibility of Self-Sacrificial Operations: Suicide, or Martyrdom?” and “The Book of Jihad”; and a video depicting the killing of U.S. Special Forces in Niger and an accompanying comment in Albanian, which translates to: “The Islamic State in Africa killing crusaders, American and French special forces. Look at how the US special forces scream before they die!!! Hahaha!”

Alimehmeti also described his work compiling resources on mixing dangerous chemicals and making explosives to a confidential source and discussed how to make specific types of incendiaries to spray at innocent bystanders in a terrorist attack. On an encrypted messaging channel, Alimehmeti posted dozens of links and downloadable documents on topics such as explosives-making, firearms-handling, defensive tactics, and outdoor survival, with comments encouraging the use of these resources. For example, he posted a video and described it as “a video release from the official media of the Khilafa, explaining how YOU O Muwahid can make TATP explosives in your own home ... SO FIGHT THEM O MUWAHID,” an apparent reference to a well-known ISIS video titled, “You Must Fight Them O Muwahhid,” which provides step-by-step instructions for constructing a TATP-based explosive device and attacking a human target with a knife.

Alimehmeti is charged with one count of attempting to provide material support to ISIS, which carries a maximum penalty of 20 years in prison, and one count of distribution of information pertaining to explosives, destructive devices, and weapons of mass destruction in furtherance of a federal crime of violence, which carries a maximum penalty of 20 years in prison.

The FBI’s New York Joint Terrorism Task Force, which consists principally of agents and analysts from the FBI and detectives from the New York City Police Department, is investigating the case. The Justice Department’s Office of International Affairs, Department of Homeland Security’s Homeland Security Investigations, and law enforcement partners in Albania and Australia, including the Australian Attorney-General’s Department, provided valuable assistance.

Assistant U.S. Attorneys Nicholas S. Bradley and Jane Y. Chong for the Southern District of New York are prosecuting the case, with assistance from Trial Attorney Jessica K. Fender of the National Security Division’s Counterterrorism Section.

A criminal complaint is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

Damian Williams, the United States Attorney for the Southern District of New York, announced that JYSHUN TROWER was sentenced today by U.S. District Judge Denise L. Cote to 14 years in prison for trafficking firearms and selling counterfeit pills laced with fentanyl. TROWER previously pled guilty to illegally transporting and distributing firearms and conspiring to distribute narcotics.

U.S. Attorney Damian Williams said: “Jyshun Trower placed countless New Yorkers’ lives in danger, attempting to flood the City with over 40 illegal firearms, including military-style assault weapons, that destroy human bodies and lives.  Trower also sold thousands of counterfeit pharmaceutical pills containing deadly fentanyl.  He now faces significant time in prison for his crimes.” 

According to the Indictment, and statements made in court proceedings and filings:

From on or about June 5, 2023, through on or about December 14, 2023, TROWER illegally transported and sold firearms in Manhattan and the New York City Area.  In almost a dozen transactions, TROWER illegally sold approximately 43 firearms to an undercover law enforcement agent and others.  The firearms included multiple semiautomatic pistols, semiautomatic rifles, assault style rifles and pistols, ammunition, high-capacity magazines, a ghost gun, and components used to convert a semiautomatic pistol into a fully automatic pistol—that is, a machine gun.  Images of several of the firearms that TROWER sold are below.

Firearms TROWER sold in Manhattan on July 21, 2023.

Firearms TROWER sold in Manhattan on July 31, 2023.

Firearms TROWER sold in Manhattan on August 17, 2023.

Firearms TROWER sold in Manhattan on August 25, 2023.

Firearms TROWER sold in Manhattan on September 29, 2023.

Firearms TROWER sold in Manhattan on December 14, 2023.

In addition, TROWER conspired to sell 10,000 fentanyl pills to an undercover law enforcement agent.  TROWER also had arranged with the undercover agent to include several firearms in the transaction.  On or about December 14, 2023, TROWER arrived at the sale location with the firearms, where law enforcement apprehended TROWER and recovered a bag containing over hundreds of counterfeit pills laced with fentanyl.

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In addition to the prison term, TROWER, 27, of Virginia Beach, Virginia, was sentenced to five years of supervised release.

Mr. Williams praised the outstanding investigative work of the New York City Police Department, the Drug Enforcement Administration New York Division, and the U.S. Department of Homeland Security, Homeland Security Investigations New York Field Office.

The case is being handled by the Office’s Narcotics Unit.  Assistant U.S. Attorney Lisa Daniels is in charge of the prosecution.

Damian Williams, the United States Attorney for the Southern District of New York, and Steven G. James, the Superintendent of the New York State Police, announced the unsealing of a four-count Complaint charging MICHAEL O’FLAHERTY with obstructing an official proceeding and making false statements to federal investigators. O’FLAHERTY was arrested this morning and presented today before U.S. Magistrate Judge Victoria Reznik.

U.S. Attorney Damian Williams said: “As alleged, Michael O’Flaherty, a New York State Police narcotics investigator, exploited his position of public trust in an effort to help his former confidential informant—who was responsible for distributing tens of thousands of potentially deadly fentanyl pills—evade law enforcement.  O’Flaherty allegedly abused his position as a sworn member of law enforcement by tipping off the fentanyl pill dealer about a covert narcotics investigation and encouraging the dealer to destroy evidence.  The defendant’s alleged conduct betrayed the oath he swore to protect New Yorkers and jeopardized the safety of fellow law enforcement officers.  Today’s charges make clear that this Office will remain vigilant in rooting out and prosecuting all forms of police corruption.”

New York State Police Superintendent Steven G. James said: “Law enforcement officers hold a profound responsibility to serve and protect our communities, which requires the highest standards of accountability and integrity.  Trust is the cornerstone of public safety, and maintaining that trust demands transparency, professionalism, and an unwavering commitment to ethical conduct.  The State Police will continue to work cooperatively with the U.S. Attorney’s Office of the Southern District regarding this criminal case, and I appreciate Governor Hochul’s ongoing support of our longstanding culture of accountable policing.”

As alleged in the Complaint unsealed today:[1]

In 2022, a state law enforcement agency and the U.S. Drug Enforcement Administration conducted an investigation of fentanyl pill distribution linked to multiple overdose deaths in Dutchess County (the “Fentanyl Investigation”).  The Fentanyl Investigation identified a particular narcotics trafficker (“Individual-1”) and Individual-1’s network of runners as a prolific source of fentanyl pills in the county.  The Fentanyl Investigation also learned that Individual-1 had previously served as a confidential informant for the New York State Police (“NYSP”) and had been supervised by O’FLAHERTY, a police officer with the NYSP.  During conversations with members of the Fentanyl Investigation, O’FLAHERTY expressed a willingness to assist the Investigation.  But unbeknownst to the Fentanyl Investigation and O’FLAHERTY’s own supervisors, O’FLAHERTY had maintained a personal relationship with Individual-1 both during and after Individual-1’s tenure as an informant.  O’FLAHERTY purported to assist the Fentanyl Investigation, but in fact O’FLAHERTY promptly told Individual-1 about the Fentanyl Investigation and encouraged Individual-1 to destroy evidence of Individual-1’s narcotics trafficking. O’FLAHERTY also tried to dig for sensitive details about the Investigation, including the identity of the Investigation’s confidential source within Individual-1’s network.  At the same time, O’FLAHERTY attempted to prevent the Fentanyl Investigation from discovering the nature and extent of O’FLAHERTY’s interactions with Individual-1, including telephone calls, text messages, and one-on-one meetings that O’FLAHERTY had concealed from NYSP supervisors and colleagues.  When federal investigators ultimately questioned O’FLAHERTY about the nature of his interactions with Individual-1, including O’FLAHERTY’s disclosure of the Fentanyl Investigation, O’FLAHERTY lied to federal investigators.

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O’FLAHERTY, 42, of Poughkeepsie, New York, is charged with two counts of obstructing an official proceeding, each of which carries a maximum sentence of 20 years in prison, and two counts of false statements, each of which carries a maximum sentence of five 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 the judge.

Mr. Williams praised the outstanding work of the Special Agents of the U.S. Attorney’s Office for the Southern District of New York and the valuable assistance of the New York State Police’s Professional Standards Bureau. 

The case is being prosecuted by the Office’s White Plains Division.  Assistant U.S. Attorneys Qais Ghafary and Jeffrey C. Coffman are 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 Complaint and the descriptions of the Complaint set forth herein constitute only allegations, and every fact described should be treated as an allegation.

Damian Williams, 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 HENRY YAU for charges in connection with a scheme to commit identity theft, convert government records, and disclose agency records containing individually identifiable information.  YAU was arrested this morning and will be presented today before U.S. Magistrate Judge Stewart D. Aaron.

U.S. Attorney Damian Williams said: “Henry Yau, a supervisory law enforcement officer within U.S. Customs and Immigration Enforcement, allegedly engaged in a years-long scheme to disseminate non-public and sensitive information from law enforcement databases to friends and acquaintances.  Among other things, Yau allegedly tipped off an individual who was being investigated by the FBI; disclosed sensitive and non-public information from immigration and law enforcement databases; and, most egregiously, offered to use his authority as an ICE officer to arrest specific people at the request of, and as favors to, his friends.  As I have said before, public service is a privilege, not a right, and the career prosecutors of this Office and our law enforcement partners will never stop investigating those who seek to abuse that privilege.”

FBI Assistant Director in Charge James E. Dennehy said: “Henry Yau, a supervisory ICE deportation officer, allegedly disclosed confidential law enforcement information of more than two dozen individuals to unauthorized recipients for personal and financial gain.  This alleged abuse of authority to satisfy unwarranted personal favors erodes the public's trust.  The FBI maintains its steadfast commitment to hold accountable all government officials who engage in unscrupulous behavior infringing on the privacy and rights of others.”

According to the allegations in the Complaint unsealed today in Manhattan federal court:[1]

YAU was a Supervisory Deportation Officer with U.S. Immigration and Customs Enforcement (“ICE”), which is a law enforcement agency within the U.S. Department of Homeland Security (“DHS”).  ICE’s stated mission includes protecting the U.S. through criminal investigations and enforcing immigration laws to preserve national security and public safety.  Between in or about 2015 and in or about November 2024, YAU was employed as a Deportation Officer with ICE.  In or around September 2021, YAU was promoted to Supervisory Deportation Officer.  YAU was assigned to the ICE New York Field Office, located in Manhattan.  As an ICE Deportation Officer, YAU was given access to several password-protected law enforcement databases operated by DHS and other law enforcement agencies, including U.S. Customs and Immigration Service (“USCIS”) databases containing the status of immigration-related applications filed by aliens, U.S. Customs and Border Protection (“CBP”) databases containing information about border crossings, criminal history databases containing people’s arrest and conviction records, and ICE databases containing records relating to arrests and removals of aliens from the U.S.

From at least in or about 2017 through at least in or about 2023, YAU participated in schemes to disseminate confidential government information from law enforcement databases, including multiple databases maintained by ICE, CBP, and USCIS. YAU disseminated this confidential government information to friends and acquaintances for his own personal and financial gain.  In total, YAU improperly disseminated confidential government information relating to approximately 28 individuals, at least.  This information came from DHS databases, and YAU disclosed it without any apparent law enforcement purpose to at least approximately 12 non-law enforcement personnel, including, among others: Tommy Lin, a former Director of Constituent Services within the New York City Mayor’s Office[2]; a former candidate for New York City Council and New York State Assembly (“CC-1”); a former target of a fraud investigation being conducted by the FBI in California (“CC-2”); and a former business partner (“CC-3”).

Between in or about 2019 and in or about 2020, YAU agreed to and did disclose confidential information from law enforcement databases about an individual (“Victim-1”) that Lin was seeking to have arrested and deported from the U.S. because Victim-1 had conflict with members of a bank fraud conspiracy in which Lin was involved.  YAU shared with Lin a copy of a Field Operations Worksheet containing personal identifying information about Victim-1.  YAU then arrested Victim-1 and sent Lin photographs of Victim-1, handcuffed, following the arrest.  In connection with this scheme, Lin earned approximately $20,000 in cash.

Between in or about 2019 and in or about 2021, YAU agreed to and did disclose confidential information from immigration databases to CC-1 on multiple occasions, including information about the status of USCIS’s investigation of the permanent resident application of a particular individual (“Victim-2”) and the immigration status of another individual (“Victim-3”).

Between in or about 2018 and in or about 2020, YAU agreed to and did disclose confidential information from law enforcement databases to CC-2 on multiple occasions, including information about whether CC-2 would be potentially arrested by law enforcement at the border when entering or leaving the U.S. In or about January 2020, YAU disclosed to CC-2 that CC-2 was being investigated by law enforcement agents in California.

Between in or about 2019 and in or about 2021, YAU agreed to and did disclose confidential information from law enforcement databases to CC-3 on multiple occasions, including information about the immigration status of an individual (“Victim-3”), who YAU offered to arrest for CC-3.  YAU also disclosed to CC-3 non-public information from law enforcement databases regarding the immigration status of another individual (“Victim-4”) and information about the border crossings of another individual (“Victim-5”) into and out of the U.S.

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YAU, 41, of New York, New York, is charged with one count of identity theft conspiracy, which carries a maximum sentence of 15 years in prison; four counts of conspiracy to convert government records and property and disclose agency records containing individually identifiable information, each of which carries a maximum sentence of one year in prison; one count of conversion of government records and property, which carries a maximum sentence of one year in prison; and one count of disclosure of agency records containing individually identifiable information, which carries a maximum sentence of one year 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 the judge.

Mr. Williams praised the investigative work of the FBI. Mr. Williams also thanked the DHS Office of Inspector General and the New York City Department of Investigation for their assistance in the investigation of this case.  

This case is being handled by the Office’s Violent & Organized Crime Unit. Assistant U.S. Attorneys Andrew K. Chan, James Ligtenberg, and Ni Qian 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.
 

[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 should be treated as an allegation.

[2] As of the date of this Complaint, Lin is charged in United States v. Tommy Lin et al., S7 23 Cr. 572 (CM), with participating in a bank fraud conspiracy, in violation of 18 U.S.C. § 1349, and aggravated identity theft, in violation of 18 U.S.C. §§ 1028A and 2. 

Damian Williams, the United States Attorney for the Southern District of New York, announced that DARIUS A. PADUCH, a former urologist at two prominent medical institutions in the New York-area, was sentenced today to life in prison by Judge Ronnie Abrams for his yearslong sexual abuse of patients, some of whom were minors.  On May 8, 2024, PADUCH was convicted, following a two-week trial, of six counts of inducing a person to travel to engage in unlawful sexual activity and five counts of inducing a minor to engage in unlawful sexual activity. 

U.S. Attorney Damian Williams said: “Darius Paduch was a sexual predator who preyed on patients seeking treatment for sensitive medical issues. He used his position as a renowned urologist at prestigious hospitals to sexually assault vulnerable patients, including children, to gratify his own sexual desires.  Paduch’s abuse was perverse and pervasive, spanning over a decade and victimizing patients both inside and outside of hospital rooms.  He repeatedly violated his oath to ‘Do No Harm.’  Today’s sentence demonstrates that medical providers who exploit their position of trust to commit sexual abuse will be held accountable for their conduct.” 

According to the Superseding Indictment and evidence at trial:

From at least in or about 2007 through at least in or about 2019, PADUCH, while working as a urologist, enticed and induced multiple victims to travel to his medical offices at a prominent hospital in Manhattan (“Medical Institution-1”), so PADUCH could, among other things, sexually abuse the victims.  PADUCH also induced certain victims to travel to New Jersey where he abused and assaulted the victims under the guise of medical care.  In or about 2019, PADUCH began practicing at a different hospital located in Long Island, New York (“Medical Institution-2”), where he continued to sexually abuse patients.  During medical appointments, PADUCH would: masturbate his patients, sometimes without wearing gloves, and sometimes to the point of the patients ejaculating on him; direct his patients to masturbate while he watched; insert his finger inside the rectums of patients, including while masturbating them; and press his own erect penis against patients’ bodies.  PADUCH invited at least one victim to his boat, where PADUCH provided the patient with sedatives and masturbated the patient; PADUCH also exposed his own genitals to this patient.  PADUCH used his position at prominent medical institutions in New York to make or attempt to make the victims believe that the sexual abuse he inflicted on them was medically necessary and appropriate, when, in fact, it was not.  PADUCH often directed the victims to schedule follow-up visits, and he instructed victims to return to see him again.  PADUCH also invited at least two patients, who were minors, to serve as high school interns.  As a result of PADUCH’s actions, some victims attended many appointments with PADUCH over the course of multiple years, at which PADUCH repeatedly abused them. At trial, 11 victims testified about being sexually abused by PADUCH, and dozens more provided impact statements with the Court in connection with sentencing.

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In addition to the prison term, PADUCH, 57, of North Bergen, New Jersey, was ordered to pay restitution in an amount to be determined at a later date. 

Mr. Williams praised the outstanding investigative work of the Federal Bureau of Investigation.

The prosecution is being handled by the Office’s Violent and Organized Crime Unit.  Assistant U.S. Attorneys Marguerite B. Colson, Elizabeth A. Espinosa, Ni Qian, and Jun Xiang are in charge of the prosecution. 

Damian Williams, the United States Attorney for the Southern District of New York, announced the conviction in Manhattan federal court of WILSON DANIEL FREITA DA COSTA of one count of wire fraud and two counts of aggravated identity theft for his role in a scheme to use forged documents on Angolan Government letterhead to deceive a subdivision of the GE Company and the Angolan Government.  The jury convicted DA COSTA yesterday following a two-week trial before U.S. District Judge P. Kevin Castel.

U.S. Attorney Damian Williams said: “As a unanimous jury of his peers has found, Wilson Da Costa brazenly used forged documents to deceive a subdivision of the GE Company and the Angolan Government, causing hundreds of millions of dollars to be disbursed.  The scheme further committed the Angolan Government to purchase expensive equipment that it had not agreed to purchase – all so that Da Costa could receive millions of dollars for himself on the back end.  Thanks to the hard work of the career prosecutors of this Office and our law enforcement partners at HSI, Da Costa has now been held to account for his fraudulent conduct.”

As reflected in the Superseding Indictment, public filings, and the evidence presented at trial:

In or about October 2017, DA COSTA, the former Chief Executive Officer of GE Angola, disseminated fake documentation on Angolan Government letterhead, purportedly signed by officials from the Angolan Government and purportedly showing the Angolan Government’s commitment to purchase more GE-manufactured turbines than the Angolan Government had actually agreed to purchase.  These forged documents were then used to justify and support payouts from a $1.1 billion loan from a subdivision of the GE Company to the Angolan Government.  Subsequently, when questions arose about the number of turbines the Angolan Government had actually purchased, DA COSTA lied and continued to rely on the same forged documents that he had previously disseminated. For his efforts, DA COSTA received millions of dollars in kickback payments from the founder of a local Angolan company that had contracts to supply the Angolan Government with the GE-manufactured turbines.

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DA COSTA, 51, a naturalized U.S. citizen, was convicted by a jury of one count of wire fraud, which carries a maximum sentence of 20 years in prison, and two counts of aggravated identity theft, each of which carries a mandatory minimum sentence of two years in prison to run consecutively to any other prison terms imposed.

The statutory minimum and maximum penalties in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.  DA COSTA is scheduled to be sentenced by Judge Castel on February 26, 2025.

Mr. Williams praised the outstanding investigative work of Homeland Security Investigations.

This case is being handled by the Office’s Illicit Finance & Money Laundering Unit.  Assistant U.S. Attorneys Jennifer N. Ong, Christopher D. Brumwell, and Samuel P. Rothschild are in charge of the prosecution, with assistance from Paralegal Specialists Angelica Cotto and Nerlande Pierre. 

John Chen, 71, of the People’s Republic of China (PRC) and Los Angeles, was sentenced today to 20 months in prison for acting as unregistered agents of the PRC and bribing an IRS agent in connection with a plot to target U.S.-based practitioners of Falun Gong — a spiritual practice banned in the PRC.

According to court documents, from at least approximately January 2023 to May 2023, Chen and co-defendant Lin Feng, 44, a PRC citizen and resident of Los Angeles, California, worked inside the United States at the direction of the PRC government, including an identified PRC government official PRC Official-1, to further the PRC government’s campaign to repress and harass Falun Gong practitioners. The PRC government has designated the Falun Gong as one of the “Five Poisons,” or one of the top five threats to its rule. In China, Falun Gong adherents face a range of repressive and punitive measures from the PRC government, including imprisonment.

As part of the PRC's campaign against the Falun Gong, Chen and Feng engaged in a PRC government-directed scheme to manipulate the IRS’ Whistleblower Program in an effort to strip the tax-exempt status of an entity run and maintained by Falun Gong practitioners, the Shen Yun Performing Arts Center. After Chen filed a defective whistleblower complaint with the IRS (the Chen Whistleblower Complaint), Chen and Feng paid $5,000 in cash bribes and promised to pay substantially more to a purported IRS agent (Agent-1) who was, in fact, an undercover officer, in exchange for Agent-1’s assistance in advancing the complaint. Neither Chen nor Feng notified the Attorney General that they were acting as agents of the PRC in the United States.

In the course of the scheme, Chen, on a recorded call, explicitly noted that the purpose of paying these bribes, which were directed and funded by the PRC, was to carry out the PRC government’s aim of “toppl[ing] . . . the Falun Gong.” During a call intercepted pursuant to a judicially authorized wiretap, Chen and Feng discussed receiving “direction” on the bribery scheme from PRC Official-1, deleting instructions received from PRC Official-1 in order to evade detection, and “alert[ing]” and “sound[ing] the alarm” to PRC Official-1 if Chen and Feng’s meetings to bribe Agent-1 did not go as planned. Chen and Feng also discussed that PRC Official-1 was the PRC government official “in charge” of the bribery scheme targeting the Falun Gong.

As part of this scheme, Chen and Feng met with Agent-1 in Newburgh, New York, on May 14, 2023. During the meeting, Chen gave Agent-1 a $1,000 cash bribe as an initial, partial bribe payment. Chen further offered to pay Agent-1 a total of $50,000 for opening an audit on the Shen Yun Performing Arts Center, as well as 60% of any whistleblower award from the IRS if the Chen Whistleblower Complaint were successful. On May 18, 2023, Feng paid Agent-1 a $4,000 cash bribe at John F. Kennedy International Airport as an additional partial bribe payment in furtherance of the scheme.

Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division, U.S. Attorney Damian Williams for the Southern District of New York, and Executive Assistant Director Robert R. Wells of the FBI’s National Security Branch made the announcement.

In addition to the prison term, Chen was sentenced to three years of supervised release and ordered to forfeit $50,000. Feng was sentenced on Sept. 26, to a time-served sentence of 16 months in prison.

The FBI and Office of the Treasury Inspector General for Tax Administration investigated the case.

Assistant U.S. Attorneys Qais Ghafary, Michael D. Lockard, and Kathryn Wheelock for the Southern District of New York and Trial Attorney Christina Clark of the National Security Division’s Counterintelligence and Export Control Section prosecuted the case.

Damian Williams, the United States Attorney for the Southern District of New York, announced that JOHN CHEN was sentenced today to 20 months in prison for acting as an unregistered agent of the government of the People’s Republic of China (“PRC”) and bribing an Internal Revenue Service (“IRS”) agent in connection with a plot to target U.S.-based practitioners of Falun Gong — a spiritual practice banned in the PRC.  CHEN pled guilty on July 24, 2024, before U.S. Magistrate Judge Andrew E. Krause and was sentenced today by U.S. District Judge Nelson S. Román. 

U.S. Attorney Damian Williams said: “John Chen aligned himself with the PRC government and its goals to harass and intimidate the Falun Gong, a long-standing target of PRC repression.  In doing so, Chen boldly attempted to bribe an individual he believed to be an IRS agent to corrupt the administration of the U.S. tax code and pervert the IRS whistleblower program.  This Office will not tolerate efforts like this to repress free speech by targeting critics of the PRC in the United States.  Today’s sentence is a reminder that the U.S. justice system will hold accountable those who attempt to engage in malicious transnational repression on American soil.”

According to the Indictment and other court documents:

From at least approximately January 2023 to May 2023, CHEN and his co-defendant, Lin Feng (“FENG”) worked inside the U.S. at the direction of the PRC Government, including an identified PRC Government official (“PRC Official-1”), to further the PRC Government’s campaign to repress and harass Falun Gong practitioners.  The PRC Government has designated the Falun Gong as one of the “Five Poisons,” or one of the top five threats to its rule.  In China, Falun Gong adherents face a range of repressive and punitive measures from the PRC Government, including imprisonment.

As part of the PRC Government’s campaign against the Falun Gong, CHEN and FENG engaged in a PRC Government-directed scheme to manipulate the IRS’s Whistleblower Program in an effort to strip the tax-exempt status of an entity run and maintained by Falun Gong practitioners, the Shen Yun Performing Arts Center.  After CHEN filed a defective whistleblower complaint with the IRS (the “Chen Whistleblower Complaint”), CHEN and FENG paid $5,000 in cash bribes, and promised to pay substantially more, to a purported IRS agent who was, in fact, an undercover officer (“Agent-1”) in exchange for Agent-1’s assistance in advancing the complaint.  Neither CHEN nor FENG notified the Attorney General that they were acting as agents of the PRC Government in the U.S.

In the course of the scheme, CHEN, on a recorded call, explicitly noted that the purpose of paying these bribes, which were directed and funded by the PRC Government, was to carry out the PRC Government’s aim of “toppl[ing] . . . the Falun Gong.” During a call intercepted pursuant to a judicially authorized wiretap, CHEN and FENG discussed receiving “direction” on the bribery scheme from PRC Official-1, deleting instructions received from PRC Official-1 in order to evade detection, and “alert[ing]” and “sound[ing] the alarm” to PRC Official-1 if CHEN and FENG’s meetings to bribe Agent-1 did not go as planned.  CHEN and FENG also discussed that PRC Official-1 was the PRC Government official “in charge” of the bribery scheme targeting the Falun Gong.

As part of this scheme, CHEN and FENG met with Agent-1 in Newburgh, New York, on May 14, 2023. During the meeting, CHEN gave Agent-1 a $1,000 cash bribe as an initial, partial bribe payment.  CHEN further offered to pay Agent-1 a total of $50,000 for opening an audit on the Shen Yun Performing Arts Center, as well as 60% of any whistleblower award from the IRS if the Chen Whistleblower Complaint were successful. On May 18, 2023, FENG paid Agent-1 a $4,000 cash bribe at John F. Kennedy International Airport as an additional partial bribe payment in furtherance of the scheme.

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In addition to the prison term, CHEN, 71, of Chino, California, was sentenced to three years of supervised release and ordered to forfeit $50,000.

FENG, 44, a PRC citizen and resident of Los Angeles, California, was sentenced by Judge Román on September 26, 2024, to a time-served sentence of 16 months in prison.

Mr. Williams praised the outstanding investigative work of the Federal Bureau of Investigation’s New York and Los Angeles Field Offices and Counterintelligence Division and the Office of the U.S. Treasury Inspector General for Tax Administration.  Mr. Williams also thanked the Department of Justice’s National Security Division, Counterintelligence and Export Control Section for their assistance.

The case is being handled by the Office’s White Plains Division and National Security and International Narcotics Unit.  Assistant U.S. Attorneys Qais Ghafary, Michael D. Lockard, and Kathryn Wheelock are in charge of the case, with assistance from Trial Attorney Christina Clark of the Counterintelligence and Export Control Section. 

Damian Williams, 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 unsealing of an Indictment charging JOANNA SMITH-GRIFFIN with securities fraud, wire fraud, and aggravated identity theft in connection with defrauding investors in AllHere Education, Inc., the startup artificial intelligence education technology company she founded, out of millions of dollars.  SMITH-GRIFFIN was arrested earlier today in the Eastern District of North Carolina and will be presented this afternoon before a magistrate judge in that district. The case has been assigned to U.S. District Judge John G. Koeltl.

U.S. Attorney Damian Williams said: “As alleged, Joanna Smith-Griffin orchestrated a deliberate and calculated scheme to deceive investors in AllHere Education, Inc., inflating the company’s financials to secure millions of dollars under false pretenses.  The law does not turn a blind eye to those who allegedly distort financial realities for personal gain.”

FBI Assistant Director in Charge James E. Dennehy said: “Joanna Smith-Griffin allegedly misrepresented the composition of her startup company to defraud investors of millions and masqueraded as a financial consultant to perpetuate the scheme once discrepancies were discovered.  Her alleged actions impacted the potential for improved learning environments across major school districts by selfishly prioritizing personal expenses.  The FBI will ensure that any individual exploiting the promise of educational opportunities for our city’s children will be taught a lesson.”

According to the allegations in the Indictment unsealed today in Manhattan federal court:[1]

From at least in or about November 2020 through at least in or about June 2024, SMITH‑GRIFFIN engaged in a scheme to defraud investors in AllHere Education, Inc. (“AllHere”), an educational technology startup she founded at Harvard that sold artificial intelligence software designed to increase classroom attendance and engagement in K-12 school districts.  Beginning as early as AllHere’s Series A financing round in November 2020 and continuing through the collapse of the company in June 2024, SMITH-GRIFFIN misrepresented AllHere’s revenue, customer base, and cash to her investors.

For example, in the spring of 2021, SMITH-GRIFFIN told potential AllHere investors that AllHere had generated approximately $3.7 million in revenue in 2020, had approximately $2.5 million in cash on hand, and had major school district customers like the New York City Department of Education ("NYC DOE") and Atlanta Public Schools.  In fact, AllHere had generated approximately $11,000 in revenue in 2020, had approximately $494,000 in cash, and did not have contracts with many of the customers it represented, including the NYC DOE and Atlanta Public Schools.

SMITH-GRIFFIN’s misrepresentations continued through AllHere’s collapse, during which time she was able to obtain nearly $10 million from investors and sought an additional $35 million from a private equity investor who ultimately decided not to invest.  She used some of the fraudulently obtained funds to put a down payment on her house in North Carolina and pay for her wedding.  SMITH-GRIFFIN also embezzled corporate funds for her own benefit.  When AllHere’s investors and outside accountant accidentally discovered the discrepancy between AllHere’s actual financials and what SMITH-GRIFFIN was telling investors, SMITH-GRIFFIN tried to cover up her crimes, going so far as to create a fake email account for AllHere’s outside financial consultant, which she used to send additional fraudulent financial documents to her largest investor.

AllHere is now in Chapter 7 bankruptcy, its employees have been laid off, and AllHere is under the control of a court-appointed bankruptcy trustee.

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SMITH-GRIFFIN, 33, of Raleigh, North Carolina, is charged with securities fraud, which carries a maximum sentence of 20 years in prison; wire fraud, which carries a maximum sentence of 20 years in prison; and aggravated identity theft, which carries a mandatory sentence of two years in prison.

Mr. Williams praised the outstanding work of the FBI.  

This case is being handled by the Office’s Securities and Commodities Fraud Task Force.  Assistant U.S. Attorney Matthew R. Shahabian is 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 text of the Indictment and the description of the Indictment set forth in this release constitute only allegations, and every fact described should be treated as an allegation.

Damian Williams, the United States Attorney for the Southern District of New York; Jonathan Mellone, the Special Agent in Charge of the Northeast Region of the U.S. Department of Labor’s Office of Inspector General (“DOL-OIG”); and Andrew Wroblewski, the Assistant Director of the U.S. Department of State’s Diplomatic Security Service (“DSS”) Domestic Operations, announced the unsealing of a Superseding Indictment charging LE VAN HUNG, a/k/a “Hung Van Le,” a/k/a “Van Hung Le,” with conspiring with the Chief Financial Officer of a multinational media company headquartered in New York City to engage in a transnational scheme to launder at least approximately $67 million of illegally obtained funds to benefit, among others, the media company.  On Friday, HUNG was extradited from South Korea and was presented before U.S. Magistrate Judge Ona T. Wang.  The case has been assigned to U.S. District Judge Marrero. 

U.S. Attorney Damian Williams said: “As alleged, Le Van Hung, while located in a foreign country, conspired with the Chief Financial Officer of a global newspaper and media company, to benefit the media company and its affiliates by laundering tens of millions of dollars in fraudulently obtained unemployment insurance benefits and other crime proceeds.  In furtherance of the scheme, Hung allegedly stole the personal identification of U.S. residents to open and maintain financial accounts in order to launder fraud proceeds.  The charges against and extradition of Hung reflect this Office’s ongoing commitment to enforce the law against those who facilitate money laundering, even if located abroad, together with our foreign partners.”

DOL-OIG Special Agent in Charge Jonathan Mellone said: “An important part of the mission of the Office of Inspector General is to investigate allegations of fraud involving the Department of Labor's unemployment insurance program.  We will continue to work with our law enforcement partners to safeguard benefits intended for unemployed American workers.”

DSS Domestic Operations Assistant Director Andrew Wroblewski said: “Protecting U.S. persons from international fraud schemes and safeguarding U.S. personal information and documentation, including passports, is critical to the Diplomatic Security Service’s mission.  We are firmly committed to partnering with our U.S. and international law enforcement colleagues to stop criminals from conspiring to commit identity fraud and protecting greater U.S. interests.”

According to the allegations contained in the Superseding Indictment:[1]

From at least in or about 2020, through in or about May 2024, HUNG, while working in a foreign office of a multinational media company headquartered in New York, New York (the “Media Company”), conspired with others, including the Chief Financial Officer of the Media Company, to participate in a sprawling, transnational scheme to launder at least approximately $67 million of illegally obtained funds to bank accounts in the names of the Media Company and related entities.  In furtherance of the money laundering conspiracy, HUNG recruited and managed various co-conspirators, including co-conspirators who worked with the Media Company’s “Make Money Online” team.  HUNG also used, possessed, and transferred personal identification information and documents of U.S. residents in order to, among other things, open and maintain financial accounts that were used to launder fraud proceeds. In one particular instance, HUNG directed a co-conspirator to call a bank and falsely claim that the co-conspirator was the account holder of a certain account so that the bank would unlock the account and HUNG could move fraudulent proceeds out of the account.

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If you believe you are a victim of identity fraud perpetrated by HUNG, please contact [email protected], and find more information here: https://www.justice.gov/usao-sdny/united-states-v-le-van-hung. 

HUNG, 29, of Vietnam, is charged with one count of conspiring to commit money laundering, which carries a maximum sentence of 20 years in prison, one count of conspiracy to commit bank fraud, which carries a maximum sentence of 30 years in prison, one count of aggravated identity theft, which carries a mandatory sentence of two years in prison, and one count of identity theft conspiracy, which carries a maximum sentence of 15 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 the judge.

Mr. Williams praised the outstanding investigative work of DOL-OIG, DSS, and the Special Agents of the U.S. Attorney’s Office for the Southern District of New York.  Mr. Williams also thanked U.S. Customs and Border Protection.  The Justice Department’s Office of International Affairs worked with the International Criminal Division of the Korean Ministry of Justice to secure the arrest and extradition of Hung. 

This prosecution is part of an Organized Crime Drug Enforcement Task Forces (“OCDETF”) operation.  OCDETF identifies, disrupts, and dismantles high-level 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 case is being handled by the Office’s Public Corruption Unit.  Assistant U.S. Attorneys Emily Deininger, Rebecca T. Dell, and Jane Kim are in charge of the prosecution.

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 Superseding Indictment, and the description of the Indictment set forth herein, constitute only allegations, and every fact described should be treated as an allegation.

Damian Williams, the United States Attorney for the Southern District of New York, announced today that MUHAMMAD ASIF HAFEEZ, a/k/a “Sultan,” pled guilty in Manhattan federal court to conspiring to import heroin, methamphetamine, and hashish into the United States.  HAFEEZ was provisionally arrested in London, United Kingdom, on August 25, 2017, and extradited to the U.S. on May 12, 2023. The defendant pled guilty today before U.S. Magistrate Judge Stewart D. Aaron and will be sentenced by U.S. District Judge Victor Marrero.

U.S. Attorney Damian Williams said: “For more than two decades, Muhammad Asif Hafeez played a leading role in a sophisticated international drug trafficking network that was responsible for manufacturing and distributing ton quantities of dangerous narcotics to the U.S. and throughout the world.  Today’s plea ensures that one of the world’s most prolific drug traffickers will be held accountable for his crimes.  I thank our partners at the DEA’s Special Operations Division for their incredible work and dedication to this case, which has taken years to investigate and prosecute, and thank the career prosecutors of this Office who remained dogged in their pursuit of the defendant and his co-conspirators.”

According to the allegations contained in indictments charging HAFEEZ and his co-defendants and other public statements and filings:

From at least in or about 2013 through the date of his provisional arrest in 2017, HAFEEZ conspired with his co-defendants, Baktash Akasha Abdalla, Ibrahim Akasha Abdalla, Gulam Hussein, and Vijaygiri Anandgiri Goswami to import heroin into the U.S.  Baktash Akasha Abdalla was the leader of an organized crime family in Kenya (the “Akasha Organization”), which was responsible for the production and distribution of ton quantities of narcotics within Kenya and throughout Africa and maintained a network used to distribute narcotics for importation into the U.S.  For years, HAFEEZ served as one of the primary suppliers of narcotics to the Akasha Organization, including to Bakash Akasha Abdalla’s father, who helmed the Akasha Organization before he was murdered in the Netherlands in 2000.  During this investigation, in October 2014, Ibrahim Akasha Abdalla delivered a one-kilogram heroin sample, on behalf of HAFEEZ and the Akasha Organization, to confidential sources acting at the direction of the Drug Enforcement Administration (“DEA”) in Nairobi, and, in early November 2014, Ibrahim Akasha Abdalla delivered 98 additional kilograms of heroin to the confidential sources. These samples were just a small portion of the narcotics that HAFEEZ distributed with the Akasha Organization; indeed, during this investigation, Baktash Akasha Abdalla boasted in a recorded meeting that HAFEEZ had distributed “tons” of narcotics with his father and the Akasha Organization.  Baktash Akasha, Ibrahim Akasha, and Goswami were provisionally arrested by Kenyan authorities in November 2014 and extradited to the U.S. in 2017.

Further, from at least in or about 1993 through the date of his provisional arrest in 2017, HAFEEZ also conspired to import hashish and methamphetamine into the U.S.  In connection with this conspiracy, HAFEEZ and co-conspirators transported multi-ton shipments of hashish to Europe and North America.  Between 2013 and 2016, HAFEEZ and certain co-conspirators also sought to establish a methamphetamine-production facility in Mozambique, which was intended to produce methamphetamine for sale in the U.S., Europe, and Australia.  HAFEEZ and his co-conspirators abandoned their plan after law enforcement authorities seized approximately 18 tons of ephedrine from a factory in Solapur, India, including several tons of ephedrine that HAFEEZ and his co-conspirators planned to use as a precursor chemical to manufacture methamphetamine in Mozambique.

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HAFEEZ, 66, a Pakistani national residing in, among other places, London, pled guilty to conspiring to manufacture and distribute heroin for importation into the U.S. and conspiring to manufacture and distribute methamphetamine and hashish for importation into the U.S.  Each of these offenses carries a maximum sentence of life in prison and a mandatory minimum sentence of 10 years in prison.

The maximum and minimum 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 a judge.

Baktash Akasha Abdallah, 47, and Ibrahim Akasha Abdallah, 36, previously pled guilty to conspiring to import and importing heroin and methamphetamine into the U.S., conspiring to use and carry machineguns and destructive devices in connection with their drug-trafficking crimes, and obstructing justice by paying bribes to Kenyan officials in an effort to avoid being extradited to the U.S.  Baktash Akasha Abdallah was sentenced on August 16, 2018, to 25 years in prison, and Ibrahim Akasha Abdallah was sentenced on January 10, 2020, to 23 years in prison.

Mr. Williams praised the outstanding efforts of the Special Operations Division of the DEA, Bilateral Investigations Unit.  Mr. Williams also thanked the United Kingdom authorities, the DEA Dubai Country Office, the DEA Nairobi Country Office, the DEA Pretoria Country Office, the DEA New Delhi Country Office, and the U.S. Department of Justice’s Office of International Affairs and London Attaché. 

This prosecution is being handled by the Office’s National Security and International Narcotics Unit.  Assistant U.S. Attorneys Jane Chong and Michael D. Lockard are in charge of the prosecution.

Damian Williams, the United States Attorney for the Southern District of New York, announced that FRANK BUTSELAAR pled guilty on Thursday, November 14, 2024, to one count of aiding or assisting in the filing of a false or fraudulent tax return.  BUTSELAAR pled guilty before U.S. District Judge Cathy Seibel, to whom his case is assigned.

U.S. Attorney Damian Williams said: “Today’s guilty plea, which comes after a rigorous investigation, demonstrates that this Office will stop at nothing to ensure that tax professionals who decide to cheat and lie are held to account for their misconduct.” 

As alleged by the Government, and based on the testimony and exhibits received at trial, filings in Court, and statements made in Court:

BUTSELAAR advised the creation of offshore structures for multiple ultra-high-net worth individuals who earned money all over the world and did so while a shareholder in the Amsterdam Office of a major U.S.-based international law firm. 

Those clients included world-famous DJs, including Tijs Verwest, p/k/a “DJ Tiesto,” and Nick van de Wall, p/k/a “DJ Afrojack” (the “DJ Clients”).  Other celebrity clients included fashion models Patricia van der Vliet and Daria Strokous (the “Fashion Model Clients,” and collectively with the DJ Clients, the “Clients”).

BUTSELAAR worked with partners at a U.S.-based management firm to file U.S. tax returns for the Clients (“Management Firm-1”). 

When the Clients were becoming or had become U.S. tax residents, the defendant, and his co-conspirators—partners at Management Firm-1—sought to conceal the Clients’ offshore income through the use of nominee owners of their offshore structures.  As part of the scheme, these nominees were installed to make it appear as though the Clients’ earnings now belonged to someone else, generally a family member who lived outside the U.S.

Despite these paper changes in ownership, BUTSELAAR and his co-conspirators at Management Firm-1 never told the Clients anything of substance had changed. The Clients—with the knowledge of BUTSELAAR and his co-conspirators at Management Firm-1—continued to operate their offshore entities as their own and believed they had access to and could direct the money they were accumulating offshore.  

Between 2012 and 2017, when Verwest was a U.S. Resident taxpayer, BUTSELAAR and Management Firm-1 omitted from Verwest’s taxes substantial sums held offshore. Similarly, in 2013, when van de Wall was a U.S. Resident taxpayer, BUTSELAAR and Management Firm-1 omitted from van de Wall’s taxes substantial sums held offshore.  The amount of unreported income for these two taxpayers exceeded $70 million.  During his allocution, BUTSELAAR admitted that partners at Management Firm-1 knowingly omitted overseas income, which should have been reported, from van de Wall’s 2013 U.S. resident return.     

While the scheme was operating, BUTSELAAR was repeatedly warned that the income being collected offshore for his Clients was reportable.  In fact, six different professionals—CPAs and tax lawyers in the U.S.—told BUTSELAAR that the offshore income being accumulated outside the U.S. for the Clients was reportable in the U.S.  In the face of these repeated warnings, BUTSELAAR lied and concealed information from these professionals.  Instead, BUTSELAAR worked with his co-conspirators, partners at Management Firm-1, to conceal otherwise reportable income from U.S. authorities. 

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BUTSELAAR, 66, of Naarden, Netherlands, pled guilty to one count of aiding or assisting in the filing a fraudulent tax return for the 2013 Tax Year for taxpayer Nick van de Wall, p/k/a “Afrojack,” which carries a maximum sentence of three years in prison.

The statutory maximum sentence is prescribed by Congress and is provided here for informational purposes only, as any sentencing will be determined by a judge. BUTSELAAR is scheduled to be sentenced by Judge Seibel on February 13, 2025.

Mr. Williams praised the outstanding investigative work of the Internal Revenue Service-Criminal Investigation (“IRS-CI”) and the Joint Chiefs of Global Tax Enforcement.  Mr. Williams also thanked the Justice Department’s Office of International Affairs and Italy’s Ministero della Giustizia, Arma dei Carabinieri, Guardia di Finanza, and Interpol-Rome for their assistance.

The case is being handled by the Office’s White Plains Division.  Assistant U.S. Attorneys Benjamin Klein, Shiva H. Logarajah, and David A. Markewitz are in charge of the prosecution. 

Damian Williams, the United States Attorney for the Southern District of New York, announced that BASHIRU GANIYU was sentenced today by U.S. District Judge Lewis A. Kaplan to 13 years in prison for his role in a criminal enterprise that defrauded individuals and businesses across the U.S. of millions of dollars.  In April 2024, GANIYU was convicted following a jury trial of conspiracy to commit mail fraud and wire fraud, conspiracy to commit money laundering, conspiracy to receive stolen money, and receipt of stolen money.

U.S. Attorney Damian Williams said: “The defendant participated in a criminal enterprise that preyed on elderly people and other unsuspecting victims, deceiving them into sending millions of dollars in romance scams and other schemes.  The defendant’s conduct devastated victims around the country, including many who were looking for companionship.  Today’s sentence holds the defendant accountable for his conduct.”     

As reflected in the Indictment, court filings, and the evidence presented at trial:

From in or about 2020 through in or about 2022, a criminal enterprise (the “Enterprise”) based in Ghana committed a series of romance scams and business email compromises against individuals located across the U.S., including in the Southern District of New York.  The Enterprise conducted the romance scams by using electronic messages sent via email, text messaging, or online dating websites that deluded victims, many of whom were vulnerable older men and women who lived alone, into believing the victim was in a romantic relationship with a fake identity assumed by members of the Enterprise.  Once members of the Enterprise had gained the trust of the victims using the fake identity, they used false pretenses to cause the victims to wire money to bank accounts the victims believed were controlled by their romantic interests, when in fact the bank accounts were controlled by members of the Enterprise like GANIYU.  The Enterprise also used business email compromises to trick individuals and businesses to send funds that the victims believed were being sent to legitimate business counterparties but were actually sent to accounts controlled by members of the Enterprise.

GANIYU received money sent by more than 40 victims of the Enterprise under false pretenses into 10 bank accounts held in the name of his purported business located in the Bronx, New York.  After receiving nearly $12 million in stolen funds, GANIYU laundered these criminal proceeds to other members of the Enterprise or abroad at the direction of his co-conspirators. 

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In addition to the prison term, GANIYU, 39, of the Bronx, New York, was sentenced to three years of supervised release and ordered to forfeit $11,744,115.07 and pay restitution in the amount of $7,675,785.32. 

Mr. Williams praised the outstanding investigative work of the FBI.

The prosecution of this case is being handled by the Office’s Complex Frauds and Cybercrime Unit.  Assistant U.S. Attorneys Danielle Kudla and Matthew Weinberg are in charge of the prosecution, with assistance from Paralegal Specialist Lucy Gavin.

“As evidence has shown during the trial of Alvin Eusebio, the 174th Street Crew was a large-scale narcotics organization, principally operating in Washington Heights.  Earlier today, Eusebio was convicted in connection to this crew that operated an organized and sophisticated operation, staffing managers to ensure 24/7 coverage, and even disciplining members who missed work or demanding proof of illness (such as a doctor’s note or picture of a positive COVID-19 test).  All to pump narcotics onto our streets, including deadly fentanyl. Eusebio’s federal conviction is indicative of the consequences facing those who peddle massive amounts of illegal narcotics on New York’s streets.”

Damian Williams, 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 that AUSTIN SUMAN was arrested after he made a series of violent and hate-based threats to a news reporter, threatening to kill her and her family, as well as blow up her house.  SUMAN was arrested in Myrtle Beach, South Carolina, this morning and will be brought to the Southern District of New York to be presented in White Plains federal court.

U.S. Attorney Damian Williams said: “The charges against the defendant demonstrate our resolve to work at lightning speed to neutralize threats against the press—which serves a vital role in our democracy.  To any individual who dares to cross the line and make hate-based threats against members of our press: you will be found, and you will be held accountable for your actions.”

FBI Assistant Director in Charge James E. Dennehy said: “Austin Suman allegedly made numerous threats and ethnic slurs to a local news reporter to file a personal grievance against her for her previous reporting of his prior arrest.  His alleged threats to inflict significant harm with firearms and explosives were delivered with intimidation and prejudice.  Hiding behind a screen will not prevent the FBI’s pursuit of those who target others with hateful messages of violence and death.”

As alleged in the Complaint:[1]

On Friday, November 8, 2024, SUMAN sent messages over Facebook and email threatening a news reporter based in Orange County, New York.  “You are a dumb spick, we [are] coming for you,” he said.  “I will end you and your family.”  “You better stay in [N]ew [Y]ork.”  SUMAN also threatened to blow up the victim’s residence: “I can blow your house off [its] foundation tread lightly.”  His threats appeared motivated by an article the reporter wrote several years ago, which related to SUMAN’s arrest for threatening a former roommate with a firearm, resulting in his guns being taken away.  He added that all his guns were returned, stating “I have more guns than ever,” including “ful[ly] auto[matic]” weapons.  SUMAN’s threats also appeared motivated by gender, race, ethnicity, and national origin.  “[D]umb fuckin cunt . . . female journalist what a joke.”  “[D]umb Mexican,” he said, while repeating ethnic slurs against people of Hispanic, Latin American, or Spanish descent.  “We are going to deport your family all of them . . . [u]seless life. Dumb bitch. I would drag you by your legs naked with my horse.”  “Guess what I have now? More [guns] than you or your family might know. Fucking spicks.”

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SUMAN, 35, of Myrtle Beach, South Carolina, is charged with threatening interstate communications, which carries a maximum sentence of five years in prison; willfully making a threat involving explosives, which carries a maximum sentence of 10 years in prison; and interstate stalking, which carries a maximum sentence of five 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 defendant will be determined by a judge.

Mr. Williams praised the outstanding work of the FBI and the Hudson Valley Safe Streets Task Force in swiftly investigating the threats charged in the Complaint.  Mr. Williams also thanked the New York State Police, Horry County Police Department, and FBI Columbia Division.

This case is being handled by the Office’s White Plains Division.  Assistant U.S. Attorney Reyhan Watson 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 should be treated as an allegation.

Damian Williams, 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 the arrest of six individuals charged with participating in a drug conspiracy that distributed large amounts of cocaine and fentanyl on the streets of Peekskill, New York.  The defendants, JASON TINSLEY, a/k/a “Floss,” JEROME REED, a/k/a “Pops,” RAKIM MAYO, a/k/a “Bo,” THOMAS RYAN, GARY BURKETT, and MIESHA CATO, were arrested and arraigned on Tuesday before U.S. Magistrate Judge Andrew E. Krause.  The case is assigned to U.S. District Judge Kenneth M. Karas.

U.S. Attorney Damian Williams said: “As alleged in the Indictment, the defendants participated in a conspiracy to flood the streets of Peekskill with cocaine, crack, and fentanyl.  They allegedly operated throughout the City of Peekskill, on the street and in public housing complexes, disrupting people’s everyday lives and brazenly infesting the streets and residential buildings of Peekskill with dangerous drugs while they sought to get rich.  Our investigation remains ongoing, and I thank our law enforcement partners and the career prosecutors of this Office who are working tirelessly to keep drug dealers and dangerous illegal drugs out of our communities.”

FBI Assistant Director in Charge James E. Dennehy said: “These six defendants allegedly organized a regional narcotics trade to supply significant amounts of highly addictive drugs, including cocaine and fentanyl, through various personal and intermediary transactions.  The alleged conspiracy operated on the streets and within local residential complexes, putting the wellbeing and safety of residents at risk through the increased presence of illegal drugs.  The FBI will continue to dismantle and terminate the flow of illegal drugs plaguing our communities.”

As alleged in the Indictment unsealed in White Plains federal court and statements made in court proceedings:

From roughly April 2024 until their arrests this week, the defendants participated in a conspiracy to supply and distribute large amounts of primarily cocaine, crack cocaine, and fentanyl in Peekskill, New York, along with methamphetamine and other narcotics.  They operated out of multiple residential buildings, including Peekskill’s Bohlmann Towers and Dunbar Heights public housing complexes, actively selling drugs everyday themselves and through street sellers and couriers.

In addition to arresting the defendants on Tuesday, the FBI, City of Peekskill Police Department, the Westchester County Police Department, and other members of the FBI’s Westchester County Safe Streets Task Force and its partners also executed multiple search warrants in Peekskill, Brooklyn, and New Jersey. In these searches, members of law enforcement discovered multiple kilograms of methamphetamine and crack cocaine, PCP, multiple firearms and rounds of ammunition, and over $100,000 of cash and jewelry.

If you have any information about this case, please contact the FBI at 1-800-Call-FBI or tips.fbi.gov.

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TINSLEY, 42, of Peekskill, New York; REED, 35, of Peekskill, New York; MAYO, 35, of Brooklyn, New York; RYAN, 43, of Brooklyn, New York; BURKETT, 62, of Peekskill, New York; and CATO, 37, of Peekskill, New York, are charged with narcotics conspiracy, which carries a maximum sentence of life in prison and a mandatory minimum sentence of 10 years in prison.

The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendants will be determined by a judge.

Mr. Williams praised the outstanding work of the FBI Westchester County Safe Streets Task Force, the City of Peekskill Police Department, the Westchester County Police Department, and the Drug Enforcement Administration.  Mr. Williams also thanked the Yorktown Police Department, the New York City Police Department, and the New York State Police.

This case is being handled by the Office’s White Plains Division. Assistant U.S. Attorney Justin L. Brooke is 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.

George Semerene Quintero (Semerene), 61, of Venezuela, was sentenced today to 30 months in prison to be followed by three years of supervised release for conspiring to violate the International Emergency Economic Powers Act (IEEPA) and for his role in a scheme to evade U.S. sanctions imposed on Petróleos de Venezuela S.A. (PdVSA), a Venezuelan state-owned oil company.

“Today, the defendant George Semerene Quintero, is being held accountable for his role in a brazen scheme to illegally funnel American aircraft parts to service planes used by Maduro and his cronies,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “The Justice Department is committed to enforcing the sanctions imposed on the Maduro regime and will not tolerate those who violate the law and undermine our national security.”

“Semerene conspired to illegally procure critical parts from U.S. companies to supply the PdVSA aircraft fleet and tried to hide the transactions through third parties in other countries like Spain and Costa Rica,” said Assistant Secretary for Export Enforcement Matthew S. Axelrod of the Commerce Department’s Bureau of Industry and Security (BIS). “Now, the only procurement he’ll be doing is at the prison commissary.”

“Today, George Semerene Quintero was held accountable in a U.S. court of law for conspiring to circumvent economic sanctions and export controls to aid Nicolás Maduro’s regime in Venezuela in obtaining critical aircraft parts from America,” said U.S. Attorney Markenzy Lapointe for the Southern District of Florida. “The prosecution of Semerene reflects our steadfast commitment to holding those who violate sanctions accountable and to vigorously enforcing export controls to protect our nation’s security. Together, with the Bureau of Industry and Security and our law enforcement partners, the U.S. Attorney’s Office will continue to ensure that the integrity and intent of U.S. sanctions are preserved.”

According to court documents, between January 2019 and December 2021, after learning of the sanctions imposed on PdVSA, Semerene and his co-conspirators devised a scheme to illegally procure aircraft parts, including bearings, rudder parts, joint slide flexes and actuators, from the United States to service PdVSA’s aircraft fleet in Venezuela, in violation of U.S. sanctions and export controls. Semerene, who was an employee in PdVSA’s procurement department, and his co-conspirators concealed from U.S. companies that the requested parts were destined for Venezuela and PdVSA by utilizing third parties in other countries, including a company in Costa Rica, Novax Group SA, and a company in Spain, Aerofalcon SL, to serve as the purported purchasers and end users for the aircraft parts. Semerene and his co-conspirators carried out this scheme by causing the third-party companies to (1) lie to U.S. parts suppliers; (2) make false declarations on customs forms and shipping documents; (3) fabricate supplier invoices; and (4) provide false end-user certificates. Semerene and his co-conspirators utilized freight forwarders and shipping companies located in the Southern District of Florida to move the parts.

The indictment charging Semerene and nine co-defendants, including three other individuals associated with PdVSA, was unsealed in April, following Semerene’s arrest upon his arrival in the United States. Semerene pleaded guilty on Aug. 20.

BIS investigated the case.

Assistant U.S. Attorney Jonathan Stratton for the Southern District of Florida (SDFL) and Trial Attorney Ahmed Almudallal of the National Security Division’s Counterintelligence and Export Control Section (CES) prosecuted the case. Assistant U.S. Attorney Maria Medetis, Chief of the National Security Section for SDFL and CES Deputy Chief Matthew McKenzie provided valuable assistance during the investigation.

Damian Williams, the United States Attorney for the Southern District of New York, announced today that the United States obtained a consent decree against LIBERTY CENTRAL SCHOOL DISTRICT (“LIBERTY”) in a lawsuit for violations of the Uniformed Services Employment and Reemployment Rights Act of 1994 (“USERRA”) filed on behalf of teacher and U.S. Army National Guard member John Chewens.  The consent decree enjoins LIBERTY from future violations of USERRA and requires it to pay Chewens $10,000 in damages, including the $5,992.04 in pay that Chewens did not receive because of LIBERTY’s violations.

U.S. Attorney Damian Williams said: “Our courageous soldiers, who often leave behind their families and loved ones to serve this country, should not return from their military deployments only to find that they have fallen behind in their civilian jobs. This Office is dedicated to ensuring that service members like Captain John Chewens receive all the protections that USERRA guarantees, and we will hold employers responsible when they refuse to honor those guarantees.”

As alleged in the Complaint filed in Manhattan federal court:

LIBERTY pays teachers according to a salary schedule by which a teacher’s base annual salary is determined by the teacher’s step.  Teachers typically progress one step per school year, which results in an increase in the teacher’s compensation.     

Chewens began teaching at LIBERTY in the 2016–17 school year, and he was paid at step 1. At the start of the 2017–18 year, he progressed to step 2.  Subsequently, he was ordered to report for active duty starting in March 2018, in support of Operation Enduring Freedom.  As a result of his deployment, he did not return to teaching until April 2019.

When Chewens returned to teaching, LIBERTY denied him the step increase that he would have otherwise received but for his absence during his deployment.  As a result, his annual base salary for the 2018–19 school year and subsequent school years was less than it would have been but for his military service.

USERRA guarantees that service members whose employment is interrupted by more than 90 days of military service are, upon their return to the employer, paid at the same rate that they would have earned absent their military service.

The Consent Decree enjoins LIBERTY from violating any provisions of USERRA (including the provisions that prohibit retaliation); requires LIBERTY to compensate Chewens for lost wages and other damages; and requires LIBERTY to incorporate the following statement into its Board of Education policy and to communicate it to members of its executive and administrative staff:

The Uniformed Services Employment and Reemployment Rights Act of 1994 (“USERRA”) prohibits employers from discriminating against military service members in employment and hiring. USERRA also guarantees that service members whose employment is interrupted by more than 90 days of military service are, upon their return to the employer, paid at the same rate that they would have earned absent their military service.  Even if an employee would not otherwise be eligible to advance a step in the salary schedule because of an absence, the employee must receive a step increase if the employee’s absence is due to his or her military service.

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This case is being handled by the Office’s Civil Rights Unit in the Civil Division.  Assistant U.S. Attorney Mark Osmond is in charge of the case.

Damian Williams, the United States Attorney for the Southern District of New York, announced the conviction in White Plains federal court of THIERRY ANTOINE for robbing the residence of a marijuana dealer in Chestnut Ridge, New York, on December 16, 2019, and for using, carrying, or possessing a firearm in connection with that robbery.  The jury convicted ANTOINE yesterday following a five-day trial before U.S. District Judge Nelson S. Román. 

U.S. Attorney Damian Williams said: “A unanimous jury has found that Thierry Antoine engaged in a violent gunpoint robbery, which included the beating of an innocent victim.  Thanks to the hard work of the career prosecutors of this Office and our law enforcement partners, Antoine is now held accountable for his conduct.”

As reflected in the Indictment, public filings, and the evidence presented at trial:

On or about December 16, 2019, ANTOINE and five others agreed to rob, and did rob, the residence of a known marijuana dealer in Chestnut Ridge, New York. Later that same day, ANTOINE and the others drove to the residence, bringing weapons including a mini-bat, a knife, and a firearm.  Upon arrival at the residence, ANTOINE and the others encountered a young man who was at the residence to meet a friend.  ANTOINE and the others beat the young man, including shoving the firearm in his mouth with such force that it broke one of his teeth, and tied him up as they broke into the residence and stole cash, marijuana, and high-end clothes and shoes.

*                *                *

ANTOINE, 34, of Spring Valley, New York, was convicted by a jury of one count of conspiracy to commit Hobbs Act robbery, which carries a maximum sentence of 20 years in prison; one count of Hobbs Act robbery, which carries a maximum sentence of 20 years in prison; and one count of use, carrying, and possession of a firearm, in furtherance of a crime of violence, which carries a minimum sentence of five years in prison to run consecutive to any other sentence imposed and a maximum sentence of life in prison.

The minimum and 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.  ANTOINE is scheduled to be sentenced by Judge Román on April 4, 2025. 

Mr. Williams praised the outstanding investigative work of the Bureau of Alcohol, Tobacco, Firearms and Explosives.

The prosecution of this case is being handled by the Office’s White Plains Division.  Assistant U.S. Attorneys Benjamin L. Levander, Margaret N. Vasu, and Margery B. Feinzig, with assistance from Paralegal Specialist Shannon Becker.

Damian Williams, the United States Attorney for the Southern District of New York, announced today that PAWEL BIELECKI, a/k/a “Paul HRH Saxe-Coburg-Gotha,” a Manhattan-based Franciscan friar, pled guilty before U.S. District Judge Vincent Briccetti to one count of wire fraud for perpetrating a multi-year scheme to obtain donations for a fake medical charity in Beirut, Lebanon.  

U.S. Attorney Damian Williams said: “This case serves as a stark reminder that fraudsters can exploit even the most noble causes for personal gain.  Pawel Bielecki’s deceptive actions not only robbed individuals of their hard-earned money but also undermined the spirit of generosity that drives charitable giving.  This Office is committed to holding accountable those who take advantage of well-meaning donors and will continue to work tirelessly to protect the integrity of charitable organizations in our communities.”

According to the allegations contained in the Information, plea agreement, and statements made in related court filings and proceedings:

BIELECKI is a friar in the Capuchin Order, a Catholic order of priests and brothers, who is based out of a friary in New York City.  BIELECKI engaged in a fraudulent scheme related to fake medical clinics he claimed to operate in Lebanon.  Through appearances and advertisements on radio programs and online podcasts, as well as various other media, including campaigns on various crowdfunding websites, BIELECKI fraudulently obtained more than $560,000 in donations from victims by claiming, among other misrepresentations, to run medical clinics in Beirut, Lebanon, when in fact BIELECKI was keeping victims’ donations for his personal use.

If you believe you are a victim of fraud perpetrated by BIELECKI, please contact Special Agent Sean Smyth, U.S. Attorney’s Office for the Southern District of New York, at (914) 993‑1900 or by following the instructions available at https://www.justice.gov/usao-sdny/report-crime. 

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BIELECKI, 48, of New York, New York, pled guilty to one count of wire fraud, which carries a maximum potential sentence of 20 years in prison.

The maximum potential sentence in this case is prescribed by Congress and provided here for informational purposes only, as the sentencing of the defendant will be determined by a judge.

Mr. Williams praised the outstanding investigative work of the Special Agents of the U.S. Attorney’s Office for the Southern District of New York and of the Internal Revenue Service – Criminal Division.  Mr. Williams also thanked the New York Field Office of U.S. Customs and Border Protection for their assistance in the investigation.

This case is being handled by the Office’s White Plains Division.  Assistant U.S. Attorneys Benjamin Levander and Ryan W. Allison are in charge of the prosecution.

Abdi Yusef Hassan, 56, of Minneapolis, Minnesota, and Mohamed Tahlil Mohamed, 43, of Mogadishu, Somalia, were both sentenced to 30 years in prison for hostage taking, terrorism, and firearms offenses, in connection with the 977-day hostage taking of an American journalist in Somalia. A jury in the Eastern District of New York convicted Hassan and Mohamed of those offenses in February 2023 following a three-week trial.

According to the complaints, indictments, evidence at trial, and statements made in public court proceedings, in January 2012, Michael Scott Moore, an American freelance journalist, traveled to Somalia to research piracy and the Somali economy. On Jan. 21, 2012, Moore was driving in the vicinity of Galkayo, Somalia, when his vehicle was suddenly surrounded by a group of heavily armed men carrying assault rifles and rocket-propelled grenade launchers. The men pulled Moore from his vehicle, beat him with their weapons, and drove him away in another vehicle to a secluded area, where they held him with two Seychellois fishermen (Fisherman-1 and Fisherman-2). The fishermen had been abducted off the Somali coast in October 2011. Moore was held in various locations in the vicinity of Hobyo, Somalia, for approximately three months.

In April 2012, Moore and Fisherman-1 were transferred to a boat, F/V Naham III, which had previously been hijacked in March 2012. The pirates kept Moore and Fisherman-1 captive aboard the Naham III, along with 28 crew members of the ship. Moore learned from the crew members, who were from Vietnam, China, Philippines, and Taiwan, that the hostage takers murdered the captain of the ship when they captured the vessel and that his body was kept in the ship’s freezer. The hostage takers kept Moore on the Naham III until approximately August 2012, when they transferred him back to land. On one occasion, in approximately May 2012, Moore’s captors took him from the Naham III to the Somali bush, where they forced Moore to watch as they hung Fisherman-1 from a tree by his feet and beat Fisherman-1 with a cane.  During the torture of Fisherman-1, the pirates who were present were armed with heavy weaponry, including machine guns and grenade launchers.

Moore remained a hostage for another two years. During this time, his captors shuttled him between safehouses, chained him at night to prevent his escape, surrounded him with armed guards, and repeatedly threatened him with bodily harm. Moore was also forced to make several proof-of-life videos requesting large ransom payments for his release. The kidnappers provided Moore with almost no information, and his access to the outside world was limited to a radio. In September 2014, following the payment of a ransom, Moore’s captors released him.

Hassan and Mohamed each played significant roles in Moore’s captivity. Hassan, a naturalized U.S. citizen, served as the Minister of the Interior (a role that made him responsible for police and security forces) in Galmudug province in Somalia, where Moore was held hostage. Hassan served as an overall leader of the pirates and headed their efforts to extort a massive ransom from Moore’s aging mother. Among other things, Hassan directed the production of proof-of-life videos with Moore, participated in negotiations for ransom payments, and used his own home as a base of operations for the pirates. Mohamed, a serving officer in the Somali army, was a supervisor of the pirates guarding Moore during the early stages of the hostage taking. After Moore had been moved several times, Mohamed continued to play an essential role in the hostage taking, relying on his military position, training, and experience to serve as the pirates’ head of security and armorer. As head of security, Mohamed was in charge of moving Moore from location to location around Somalia.  Mohamed also leveraged his military background to provide and repair heavy machine guns, grenade launchers, and other weapons that the pirates used to ensure that Moore could not escape.

In addition to the prison term, Hassan and Mohamed were sentenced to one day of supervised release.

Assistant Attorney General Matthew G. Olsen, U.S. Attorney Damian Williams for the Southern District of New York, and Executive Assistant Director Robert Wells of the FBI National Security Branch announced the case.

The FBI Boston and Minneapolis Field Office investigated the case with assistance from Department of State Diplomatic Security Service.

Assistant U.S. Attorney Sam Adelsberg and Trial Attorney Josh Champagne of the National Security Division’s Counterterrorism Section prosecuted the case with assistance from the U.S. Attorney’s Office for the Eastern District of New York and the Department of Justice’s Office of International Affairs.

Damian Williams, the United States Attorney for the Southern District of New York, announced today that ABDI YUSUF HASSAN and MOHAMED TAHLIL MOHAMED were both sentenced to 30 years in prison for hostage taking, terrorism, and firearms offenses, in connection with the 977-day hostage taking of an American journalist in Somalia.  A jury in the Eastern District of New York convicted HASSAN and MOHAMED of those offenses in February 2023 following a three-week trial.  The sentences were imposed by U.S. District Judge Allyne R. Ross, who also presided over the trial.

U.S. Attorney Damian Williams said: “For nearly three years, Michael Scott Moore was held hostage in Somalia by pirates. He was beaten, chained to the floor, and threatened with assault rifles and machine guns.  Hassan and Mohamed were key players in that hostage taking.  Both abused their positions in Somalia’s government—Hassan, as a senior security official, and Mohamed as an army officer—by keeping a U.S. citizen captive to satisfy their own greed.  Today’s sentences demonstrate our resolve to hold those who take Americans hostage accountable for their crimes.”

According to the Complaints, Indictments, evidence at trial, and statements made in public court proceedings:

In January 2012, Michael Scott Moore, an American freelance journalist, traveled to Somalia to research piracy and the Somali economy.  On January 21, 2012, Moore was driving in the vicinity of Galkayo, Somalia, when his vehicle was suddenly surrounded by a group of heavily armed men carrying assault rifles and rocket-propelled grenade launchers. The men pulled Moore from his vehicle, beat him with their weapons, and drove him away in another vehicle to a secluded area, where they held him with two Seychellois fishermen (“Fisherman-1” and “Fisherman-2”).  The fishermen had been abducted off the Somali coast in October 2011.   Moore was held in various locations in the vicinity of Hobyo, Somalia, for approximately three months.

In April 2012, Moore and Fisherman-1 were transferred to a boat, F/V Naham III, which had previously been hijacked in March 2012.  The pirates kept Moore and Fisherman-1 captive aboard the Naham III, along with 28 crew members of the ship. Moore learned from the crew members, who were from Vietnam, China, Philippines, and Taiwan, that the hostage takers murdered the captain of the ship when they captured the vessel and that his body was kept in the ship’s freezer.  The hostage takers kept Moore on the Naham III until approximately August 2012, when they transferred him back to land.  On one occasion, in approximately May 2012, Moore’s captors took him from the Naham III to the Somali bush, where they forced Moore to watch as they hung Fisherman-1 from a tree by his feet and beat Fisherman-1 with a cane.   During the torture of Fisherman-1, the pirates who were present were armed with heavy weaponry, including machine guns and grenade launchers.

Moore remained a hostage for another two years.  During this time, his captors shuttled him between safehouses, chained him at night to prevent his escape, surrounded him with armed guards, and repeatedly threatened him with bodily harm.  Moore was also forced to make several proof-of-life videos requesting large ransom payments for his release.  The kidnappers provided Moore with almost no information, and his access to the outside world was limited to a radio.  In September 2014, following the payment of a ransom, Moore’s captors released him.

HASSAN and MOHAMED each played significant roles in Moore’s captivity.   HASSAN, a naturalized U.S. citizen, served as the Minister of the Interior (a role that made him responsible for police and security forces) in Galmudug province in Somalia, where Moore was held hostage.  HASSAN served as an overall leader of the pirates and headed their efforts to extort a massive ransom from Moore’s aging mother. Among other things, HASSAN directed the production of proof-of-life videos with Moore, participated in negotiations for ransom payments, and used his own home as a base of operations for the pirates.  MOHAMED, a serving officer in the Somali army, was a supervisor of the pirates guarding Moore during the early stages of the hostage taking.  After Moore had been moved several times, MOHAMED continued to play an essential role in the hostage taking, relying on his military position, training, and experience to serve as the pirates’ head of security and armorer.  As head of security, MOHAMED was in charge of moving Moore from location to location around Somalia.   MOHAMED also leveraged his military background to provide and repair heavy machine guns, grenade launchers, and other weapons that the pirates used to ensure that Moore could not escape.   

*                *.               *

In addition to the prison term, HASSAN, 56, of Minneapolis, Minnesota, and MOHAMED, 43, of Mogadishu, Somalia, were sentenced to one day of supervised release.

Mr. Williams praised the outstanding efforts of the International Operations Division of the Federal Bureau of Investigation (“FBI”), the FBI’s International Violent Crimes Unit, the FBI Boston Field Office and its Portland Resident Agency, the FBI Minneapolis Field Office, the U.S. Department of State Diplomatic Security Service, the U.S. Attorney’s Office for the Eastern District of New York, the Department of Justice’s Office of International Affairs, and the Counterterrorism Section of the Department of Justice’s National Security Division for their assistance.

This prosecution is being handled by the Office’s National Security and International Narcotics Unit.  Assistant U.S. Attorney Sam Adelsberg is in charge of the prosecution, with assistance from Trial Attorney Josh Champagne of the Counterterrorism Section.

Damian Williams, the United States Attorney for the Southern District of New York, announced today the guilty plea of DAQUAN SEYMOUR, a supervisor at the Horizon Juvenile Center (“Horizon”), a secure detention center for juveniles located in the Bronx, New York, in connection with his beating of a 16-year-old resident at Horizon (“Minor Victim-1”), and attempt to cover-up the beating, on April 25, 2022.  SEYMOUR pled guilty to depriving Minor Victim-1 of his constitutional rights under color of law.  As part of his guilty plea, SEYMOUR admitted that he prepared a false report following the assault of Minor Victim-1 on April 25, 2022, in which he omitted reference to the assault of Minor Victim-1.  In addition, as part of his guilty plea, SEYMOUR also agreed not to dispute that he falsified another incident report in connection with an earlier attempted assault of a 17-year-old resident at Horizon (“Minor Victim-2”) on December 29, 2021.  SEYMOUR was arrested on July 26, 2023, and pled guilty today before U.S. District Judge Edgardo Ramos.

U.S. Attorney Damian Williams said: “Daquan Seymour, a supervisor at a juvenile detention facility, abused his position of authority by assaulting a vulnerable sixteen-year-old boy who was detained pending trial.  Seymour also lied on his reports about this and another assault on a minor in his care. Seymour’s pattern of violence toward youth and obstruction has now come to an end as he faces justice. This Office is committed to protecting the constitutional rights of all New Yorkers, including minors residing at youth detention facilities, and will ensure that those who abuse their power and harm vulnerable members of our society are held accountable.”

According to the allegations in the Indictment, Superseding Indictment, other public court documents, and statements made in court proceedings:

On or about April 25, 2022, SEYMOUR was employed as an Associate Youth Development Specialist at Horizon, which was operated by the New York City Administration for Children’s Services (“ACS”).  Associate Youth Development Specialists at Horizon are responsible for, among other things, supervising other staff members and ensuring the safety of all juvenile residents. 

At the time of the beating, Minor Victim-1 was a 16-year-old juvenile resident at Horizon, who was detained pending trial.  Following a confrontation between several staff members and juvenile residents at Horizon, including Minor Victim-1, SEYMOUR, along with a fellow supervisor violently dragged Minor Victim-1 by his forearms across the floor of a residential hall and into a private room (the “Room”).  Once inside the Room, SEYMOUR and the other supervisor beat Minor Victim-1, striking him repeatedly and forcefully as Minor Victim-1 lay on the floor.  As a result of the beating, Minor Victim-1 suffered bodily injuries, including a deep laceration to his upper lip area, which required Minor Victim-1 to be transported to a nearby hospital for emergency medical care where he received nine stitches. 

Following the beating of Minor Victim-1, SEYMOUR attempted to cover up his participation in the beating.  In particular, SEYMOUR prepared an incident report that described the confrontation between Horizon residents and staff members that immediately preceded the assault but failed to disclose that he dragged or physically assaulted Minor Victim-1.

                                                           *                *                *

SEYMOUR, 34, of the Bronx, New York, pled guilty to one count of deprivation of rights under color of law, 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 defendants will be determined by a judge.

Mr. Williams praised the efforts of the Department of Investigation for their outstanding work on this matter.  Mr. Williams also thanked the Special Agents of the U.S. Attorney’s Office for the Southern District of New York for their significant assistance.

The prosecution of this case is being handled by the Office’s Civil Rights Unit in the Criminal Division.  Assistant U.S. Attorneys Jamie Bagliebter, Lisa Daniels, and Mitzi S. Steiner are in charge of the prosecution.

Telefónica Venezolana C.A. (Telefónica Venezolana), a Venezuela-based subsidiary of Telefónica S.A. (Telefónica), a publicly traded global telecommunications operator based in Spain, will pay over $85.2 million to resolve an investigation by the Justice Department into a scheme to bribe government officials in Venezuela to receive preferential access to U.S. dollars in a currency auction.

Telefónica Venezolana entered into a deferred prosecution agreement (DPA) in connection with a criminal information filed today in the Southern District of New York charging the company with conspiracy to violate the anti-bribery provisions of the Foreign Corrupt Practices Act (FCPA).

“Telefónica Venezolana bribed Venezuelan government officials to participate in a government auction through which it exchanged Venezuelan bolivars for U.S. dollars. The company concealed the illicit payments by purchasing equipment at inflated prices from two suppliers who paid the bribes on the company’s behalf,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “Telefónica Venezolana chose to support a corrupt regime to circumvent the difficulties of conducting legal business in Venezuela. This resolution is yet another example of the Justice Department’s commitment to fight corruption and hold companies accountable for their criminal conduct.”

“Telefónica Venezolana, a subsidiary and agent of a U.S. issuer, agreed to line the pockets of corrupt Venezuelan officials to gain access to U.S. currency and maintain its position in the Venezuelan telecommunications market,” said U.S. Attorney Damian Williams for the Southern District of New York. “Intermediaries then funneled the bribe payments through U.S. correspondent bank accounts. This office will not tolerate the use and abuse of the U.S. financial system to enrich corrupt foreign officials and those who maintain their market position by appeasing them.”

“This case is an example of the IRS Criminal Investigation (IRS-CI)’s and our law enforcement partners’ relentless effort to fight corruption and protect United States interests,” said Executive Special Agent in Charge Kareem Carter of the IRS-CI Washington Field Office. “We are committed to pursuing investigations into corporate fraud in an effort to protect consumers from bearing the costs associated with criminal activity.”

“Telefónica Venezolana engaged in a complex and criminal financial fraud scheme, in which they bribed Venezuelan government officials to obtain access to U.S. dollars,” said Executive Associate Director Katrina W. Berger of Homeland Security Investigations (HSI). “Thanks to the cooperative efforts of HSI, IRS-CI, and the Justice Department, the perpetrators of this conspiracy will be forced to pay for their illicit actions. HSI will continue to collaborate with our law enforcement partners, at home and overseas, to investigate and bring to justice any corporations engaging in such financial crimes.”

According to court documents and admissions, in 2014, Telefónica Venezolana participated in a government-sponsored currency auction in Venezuela that allowed it to exchange its Venezuelan bolivars for U.S. dollars. To ensure its success in the auction, Telefónica Venezolana recruited two suppliers to make approximately $28.9 million in corrupt payments to an intermediary, knowing that some of those funds would be paid as a “commission” to Venezuelan government officials. To conceal the bribe payments, Telefónica Venezolana covered the cost of the bribes by purchasing equipment from the two suppliers at inflated prices. As a result of its corrupt payments, Telefónica Venezolana was permitted to exchange and subsequently received over $110 million through the currency auction, which it used to purchase equipment from the two suppliers it recruited to join the scheme. These funds represented over 65% of the funds that the Venezuelan government awarded in the 2014 currency auction.

As part of the DPA, Telefónica Venezolana and its corporate parent, Telefónica, have agreed, among other things, to continue cooperating with the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of New York in any ongoing or future criminal investigation arising during the term of the DPA. In addition, Telefónica Venezolana and Telefónica have agreed to enhance their compliance program where necessary and appropriate, and to report to the government regarding remediation and implementation of their enhanced compliance program.

The Justice Department reached this resolution with Telefónica Venezolana based on a number of factors, including, among others, the nature and seriousness of the offense. Telefónica Venezolana received credit for its cooperation with the department’s investigation, which included: (i) making regular factual presentations to the department based on the information learned in the course of Telefónica Venezolana’s internal investigation; (ii) voluntarily making employees based outside the United States available for interviews in the United States; (iii) producing a significant number of documents to the department, while navigating foreign data privacy and related laws; and (iv) collecting, analyzing, and organizing voluminous evidence and information for the department, accompanied by translations of documents. However, in the initial phases of the department’s investigation, Telefónica Venezolana failed to timely identify, collect, produce, and disclose certain records and important information, which affected investigative efforts by the department and reduced the impact of Telefónica Venezolana’s cooperation.

Telefónica Venezolana also engaged in timely remedial measures, including: (i) disciplining certain employees involved in the relevant misconduct or who were otherwise made aware of the misconduct, including terminating employees; (ii) strengthening its anti-corruption compliance program by building and empowering an independent compliance function, appointing a Chief Compliance Officer with direct access to the Audit Committee of the Board of Directors, and investing in additional compliance resources throughout its global operations; (iii) overhauling its review and approval process for transactions with non-standard pricing, including by ensuring that the compliance function reviews all such transactions globally; (iv) reviewing, enhancing, and testing its broader internal controls for pricing and other transactions with the assistance of a forensic accounting firm; (v) strengthening processes for vetting, engaging, and monitoring third parties, including implementing additional controls concerning payments to third parties through a proprietary software tool; and (vi) establishing risk assessment and audit processes to regularly review and update the compliance program and otherwise mitigate business risks.

In light of these considerations, as well as Telefónica Venezolana’s and Telefónica’s prior history, which includes a resolution involving a subsidiary of Telefónica, Telefónica Brasil S.A., in an action brought by the Securities and Exchange Commission in 2019 for alleged violations of the accounting provisions of the FCPA, the criminal penalty of $85,260,000 calculated under the U.S. Sentencing Guidelines reflects a 20% reduction off the fifth percentile above the low end of the otherwise applicable guidelines fine range.

IRS-CI and HSI are investigating the case as part of the IRS Global Illicit Financial Team in Washington, D.C.

Senior Litigation Counsel Nicola Mrazek and Trial Attorney Abdus Samad Pardesi of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Jilan Kamal for the Southern District of New York are prosecuting the case.

The Justice Department’s Office of International Affairs and authorities in Panama, Switzerland, and Luxembourg provided assistance in this matter.

The Criminal Division’s Fraud Section is responsible for investigating and prosecuting FCPA and Foreign Extortion Prevention Act matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.

View the deferred prosecution agreement here.

View the information here.

Damian Williams, United States Attorney for the Southern District of New York; Nicole M. Argentieri, Principal Deputy Assistant Attorney General for the Criminal Division of the U.S. Department of Justice (“DOJ”); Kareem Carter, Executive Special Agent in Charge of the IRS-CI Washington Field Office; and, Derek W. Gordon, Special Agent in Charge of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (“HSI”) Washington, D.C., Field Office, announced today that TELEFÓNICA VENEZOLANA, C.A. (“TELEFÓNICA VENEZOLANA”), a Venezuela-based subsidiary of Telefónica, S.A. (“Telefónica”), a publicly traded global telecommunications operator based in Spain, will pay over $85.2 million to resolve an investigation by the DOJ into a scheme to bribe government officials in Venezuela to receive preferential access to U.S. dollars in a currency auction.

TELEFÓNICA VENEZOLANA entered into a deferred prosecution agreement (DPA) in connection with a criminal information filed today in the Southern District of New York charging the company with conspiracy to violate the anti-bribery provisions of the Foreign Corrupt Practices Act (FCPA).

U.S. Attorney Damian Williams said: “Telefónica Venezolana, a subsidiary and agent of a U.S. issuer, agreed to line the pockets of corrupt Venezuelan officials to gain access to U.S. currency and maintain its position in the Venezuelan telecommunications market.  Intermediaries then funneled the bribe payments through U.S. correspondent bank accounts.  This Office will not tolerate the use and abuse of the U.S. financial system to enrich corrupt foreign officials and those who maintain their market position by appeasing them.”

Principal Deputy Assistant Attorney General Nicole M. Argentieri said: “Telefónica Venezolana bribed Venezuelan government officials to participate in a government auction through which it exchanged Venezuelan bolivars for U.S. dollars.  The company concealed the illicit payments by purchasing equipment at inflated prices from two suppliers who paid the bribes on the company’s behalf.  Telefónica Venezolana chose to support a corrupt regime to circumvent the difficulties of conducting legal business in Venezuela.  This resolution is yet another example of the Justice Department’s commitment to fight corruption and hold companies accountable for their criminal conduct.”

IRS-CI Executive Special Agent in Charge Kareem Carter said: “This case is an example of the IRS Criminal Investigation (CI)’s and our law enforcement partners’ relentless effort to fight corruption and protect United States interests.  We are committed to pursuing investigations into corporate fraud in an effort to protect consumers from bearing the costs associated with criminal activity.”

HSI Executive Associate Director Katrina W. Berger said: "Telefónica Venezolana engaged in a complex and criminal financial fraud scheme, in which they bribed Venezuelan government officials to obtain access to U.S. dollars. Thanks to the cooperative efforts of HSI, IRS Criminal Investigations, and the Department of Justice, the perpetrators of this conspiracy will be forced to pay for their illicit actions. HSI will continue to collaborate with our law enforcement partners, at home and overseas, to investigate and bring to justice any corporations engaging in such financial crimes.”

According to court documents and admissions:

In 2014, TELEFÓNICA VENEZOLANA participated in a government-sponsored currency auction in Venezuela that allowed it to exchange its Venezuelan bolivars for U.S. dollars.  To ensure its success in the auction, TELEFÓNICA VENEZOLANA recruited two suppliers to make approximately $28.9 million in corrupt payments to an intermediary, knowing that some of those funds would be paid as a “commission” to Venezuelan government officials.  To conceal the bribe payments, TELEFÓNICA VENEZOLANA covered the cost of the bribes by purchasing equipment from the two suppliers at inflated prices.  As a result of its corrupt payments, TELEFÓNICA VENEZOLANA was permitted to exchange and subsequently received over $110 million through the currency auction, which it used to purchase equipment from the two suppliers it recruited to join the scheme.  These funds represented over 65% of the funds that the Venezuelan government awarded in the 2014 currency auction.

As part of the DPA, TELEFÓNICA VENEZOLANA and its corporate parent, Telefónica, have agreed, among other things, to continue cooperating with the DOJ Criminal Division’s Fraud Section and U.S. Attorney’s Office for the Southern District of New York in any ongoing or future criminal investigation arising during the term of the DPA.  In addition, TELEFÓNICA VENEZOLANA and Telefónica have also agreed to enhance their compliance program where necessary and appropriate, and to report to the government regarding remediation and implementation of their enhanced compliance program.

The Department reached this resolution with TELEFÓNICA VENEZOLANA based on a number of factors, including, among others, the nature and seriousness of the offense. TELEFÓNICA VENEZOLANA received credit for its cooperation with the Department’s investigation, which included: making regular factual presentations to the Department based on the information learned in the course of TELEFÓNICA VENEZOLANA’s internal investigation; voluntarily making employees based outside the U.S. available for interviews in the U.S.; producing a significant number of documents to the Department, while navigating foreign data privacy and related laws; and collecting, analyzing, and organizing voluminous evidence and information for the Department, accompanied by translations of documents. 

However, in the initial phases of the Department’s investigation, TELEFÓNICA VENEZOLANA failed to timely identify, collect, produce, and disclose certain records and important information, which affected investigative efforts by the Department and reduced the impact of TELEFÓNICA VENEZOLANA’s cooperation.

TELEFÓNICA VENEZOLANA also engaged in timely remedial measures, including: disciplining certain employees involved in the relevant misconduct or that were otherwise made aware of the misconduct, including terminating employees; strengthening its anti-corruption compliance program by building and empowering an independent compliance function, appointing a Chief Compliance Officer with direct access to the Audit Committee of the Board of Directors, and investing in additional compliance resources throughout its global operations; overhauling its review and approval process for transactions with non-standard pricing, including by ensuring that the compliance function reviews all such transactions globally; reviewing, enhancing, and testing its broader internal controls for pricing and other transactions with the assistance of a forensic accounting firm; strengthening processes for vetting, engaging, and monitoring third parties, including implementing additional controls concerning payments to third parties through a proprietary software tool; and establishing risk assessment and audit processes to regularly review and update the compliance program and otherwise mitigate business risks.

In light of these considerations, as well as TELEFÓNICA VENEZOLANA and Telefónica’s prior history, which includes a resolution involving a subsidiary of Telefónica, Telefónica Brasil S.A., in an action brought by the Securities and Exchange Commission in 2019 for alleged violations of the accounting provisions of the FCPA, the criminal penalty calculated under the U.S. Sentencing Guidelines reflects a 20% reduction off the fifth percentile above the low end of the otherwise applicable guidelines fine range.

*                *                *

The IRS-CI and HSI are investigating the case as part of the IRS Global Illicit Financial Team in Washington, D.C.

The case is being prosecuted by Assistant U.S. Attorney Jilan J. Kamal of the Southern District of New York; Senior Litigation Counsel Nicola Mrazek and Trial Attorney Abdus Samad Pardesi of the Criminal Division’s Fraud Section.

The Justice Department’s Office of International Affairs and authorities in Panama, Switzerland, and Luxembourg provided assistance in this matter.

Shakeri Was Tasked by Iranian Regime with Surveilling and Plotting to Assassinate President-Elect Donald J. Trump

Note: View the criminal complaint here. 

Farhad Shakeri, 51, of Iran; Carlisle Rivera, also known as Pop, 49, of Brooklyn, New York; and Jonathon Loadholt, 36, of Staten Island, New York, were charged today in a criminal complaint in connection with their alleged involvement in a plot to murder a U.S. citizen of Iranian origin in New York. Rivera was arrested in Brooklyn, New York, and Loadholt was arrested in Staten Island, New York, yesterday. Shakeri remains at large and is believed to reside in Iran. Rivera and Loadholt made their initial appearance in the Southern District of New York yesterday and were ordered detained pending trial.

“There are few actors in the world that pose as grave a threat to the national security of the United States as does Iran,” said Attorney General Merrick B. Garland. “The Justice Department has charged an asset of the Iranian regime who was tasked by the regime to direct a network of criminal associates to further Iran’s assassination plots against its targets, including President-elect Donald Trump. We have also charged and arrested two individuals who we allege were recruited as part of that network to silence and kill, on U.S. soil, an American journalist who has been a prominent critic of the regime. We will not stand for the Iranian regime’s attempts to endanger the American people and America’s national security.”

“The charges announced today expose Iran's continued brazen attempts to target U.S. citizens, including President-elect Donald Trump, other government leaders and dissidents who criticize the regime in Tehran,” said FBI Director Christopher Wray. “The Islamic Revolutionary Guard Corps — a designated foreign terrorist organization — has been conspiring with criminals and hitmen to target and gun down Americans on U.S. soil and that simply won’t be tolerated. Thanks to the hard work of the FBI, their deadly schemes were disrupted.  We're committed to using the full resources of the FBI to protect our citizens from Iran or any other adversary who targets Americans.”

“Actors directed by the Government of Iran continue to target our citizens, including President-elect Trump, on U.S. soil and abroad. This has to stop,” said U.S. Attorney Damian Williams for the Southern District of New York. “Today’s charges are another message to those who continue in their efforts – we will remain unrelenting in our pursuit of bad actors, no matter where they reside, and will stop at nothing to bring to justice those who harm our safety and security. I want to thank the career prosecutors of this office and our law enforcement partners for their ongoing work in this and related investigations.  They are truly the best of the best and work tirelessly to keep our country safe.” 

According to the complaint and other public statements and filings, the Government of the Islamic Republic of Iran (the Government of Iran) is actively targeting nationals of the United States and its allies living in countries around the world for attacks, including assault, kidnapping, and murder, both to repress and silence dissidents critical of the Iranian regime and to take vengeance for the January 2020 death of then-Commander of the Islamic  Revolutionary Guard Corps (IRGC) Qods Force (IRGC-QF), Qasem Soleimani, who was killed by a U.S. drone strike in Baghdad. The IRGC is an Iranian military and counterintelligence agency under the authority of Iran’s Supreme Leader, comprised of components including an external operations force, the IRGC-QF, and has been designated as a foreign terrorist organization by the U.S. Secretary of State since April 15, 2019. The IRGC has publicly stated its desire to avenge the death of Soleimani, and, among its activities, the IRGC plots and conducts attack operations outside Iran targeting U.S. citizens residing in the United States and abroad.

Shakeri is an IRGC asset residing in Tehran, Iran. Shakeri immigrated to the United States as a child and was deported in or about 2008 after serving 14 years in prison for a robbery conviction. In recent months, Shakeri has used a network of criminal associates he met in prison in the United States to supply the IRGC with operatives to conduct surveillance and assassinations of IRGC targets. Two members of Shakeri’s network are his co-defendants, Loadholt and Rivera. At Shakeri’s instruction, Loadholt and Rivera have spent months surveilling a U.S. citizen of Iranian origin residing in the United States (Victim-1). Victim-1 is an outspoken critic of the Iranian regime and has been the target of multiple prior plots for kidnapping and/or murder directed by the Government of Iran. In exchange for Shakeri’s promise of $100,000, Rivera and Loadholt repeatedly sought to locate Victim-1 for murder.

During their efforts to locate and kill Victim-1, Shakeri, Loadholt, and Rivera shared messages about their progress and photographs relating to their scheme. For example, in or about February 2024, Rivera and Loadholt messaged about an incoming payment from Shakeri, and then traveled to Fairfield University, where Victim-1 was scheduled to appear, and took photographs on campus. In or about April, Shakeri sent Rivera a series of voice notes discussing their efforts to locate and kill Victim-1. In one voice note, Shakeri told Rivera that Victim-1 spent most of her time in particular locations of her home, and told Rivera that “you just gotta have patience … You gotta wait and have patience to catch her either going in the house or coming out, or following her out somewhere and taking care of it. Don’t think about going in. In is a suicide move.” On several occasions over the last several months, consistent with this instruction from Shakeri, Rivera and/or Loadholt have surveilled a location in Brooklyn that they had identified as associated with Victim-1.

In addition, according to statements made by Shakeri in recorded interviews with law enforcement agents, the IRGC has also tasked Shakeri with carrying out other assassinations against U.S. and Israeli citizens located in the United States. In particular, Shakeri has informed law enforcement that he was tasked on Oct. 7, 2024, with providing a plan to kill President-elect Donald J. Trump. During the interview, Shakeri claimed he did not intend to propose a plan to kill Trump within the timeframe set by the IRGC. He also stated he was tasked with surveilling two Jewish American citizens residing in New York City and offered $500,000 by an IRGC official for the murder of either victim. He was also tasked with targeting Israeli tourists in Sri Lanka.

Shakeri, Rivera, and Loadholt have all been charged with murder-for-hire, which carries a maximum penalty of 10 years in prison; conspiracy to commit murder-for-hire, which carries a maximum penalty of 10 years in prison; and money laundering conspiracy, which carries a maximum penalty of 20 years in prison.

Shakeri has also been charged with conspiring to provide material support to a foreign terrorist organization, which carries a maximum penalty of 20 years in prison;  providing material support to a foreign terrorist organization, which carries a maximum penalty of 20 years in prison; and conspiracy to violate the International Emergency Economic Powers Act and sanctions against the Government of Iran, which carries a maximum penalty of 20 years in prison. If convicted, a federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

The FBI New York Field Office is investigating the case. The U.S. Customs and Border Protection New York Field Office and Drug Enforcement Administration New York Division assisted in the investigation.

Assistant U.S. Attorneys Jacob H. Gutwillig and Michael Lockard and Special Assistant U.S. Attorney Julie Isaacson for the Southern District of New York, Trial Attorneys Dmitry Slavin of the National Security Division’s Counterterrorism Section, and Christopher Rigali and Leslie Esbrook of the National Security Division’s Counterintelligence and Export Control Section are prosecuting the case.

A complaint is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

Damian Williams, the United States Attorney for the Southern District of New York, Merrick B. Garland, the Attorney General of the United States, Christopher A. Wray, the Director of the Federal Bureau of Investigation (“FBI”), James E. Dennehy, Assistant Director in Charge of the FBI New York Field Office, and David Sundberg, Assistant Director in Charge of the FBI Washington Field Office, announced today the filing of murder-for-hire and related charges against FARHAD SHAKERI, CARLISLE RIVERA, a/k/a “Pop,” and JONATHAN LOADHOLT in connection with their involvement in a plot to murder a U.S. citizen of Iranian origin in New York.  RIVERA was arrested in Brooklyn, New York yesterday.  SHAKERI remains at large and is believed to reside in Iran.  RIVERA and LOADHOLT were presented before U.S. Magistrate Judge Jennifer Willis in the Southern District of New York yesterday and ordered detained pending trial.

U.S. Attorney Damian Williams said: “Actors directed by the Government of Iran continue to target our citizens, including President-elect Trump, on U.S. soil and abroad.  This has to stop.  Today’s charges are another message to those who continue in their efforts – we will remain unrelenting in our pursuit of bad actors, no matter where they reside, and will stop at nothing to bring to justice those who harm our safety and security.  I want to thank the career prosecutors of this Office and our law enforcement partners for their ongoing work in this and related investigations.  They are truly the best of the best and work tirelessly to keep our country safe.”  

Attorney General Merrick B. Garland said: “There are few actors in the world that pose as grave a threat to the national security of the United States as does Iran.  The Justice Department has charged an asset of the Iranian regime who was tasked by the regime to direct a network of criminal associates to further Iran’s assassination plots against its targets, including President-elect Donald J. Trump.  We have also charged and arrested two individuals who we allege were recruited as part of that network to silence and kill, on U.S. soil, an American journalist who has been a prominent critic of the regime.  We will not stand for the Iranian regime’s attempts to endanger the American people and America’s national security.”

FBI Director Christopher A. Wray said: “The charges announced today expose Iran’s continued brazen attempts to target U.S. citizens, including President-elect Donald J. Trump, other government leaders, and dissidents who criticize the regime in Tehran.  The Islamic Revolutionary Guard Corps – a designated foreign terrorist organization – has been conspiring with criminals and hitmen to target and gun down Americans on U.S. soil and that simply won’t be tolerated. Thanks to the hard work of the FBI, their deadly schemes were disrupted.  We’re committed to using the full resources of the FBI to protect our citizens from Iran or any other adversary who targets Americans.”

FBI Assistant Director in Charge James E. Dennehy said: “These individuals allegedly plotted to murder an American citizen – on our soil – at the direction of a foreign terrorist organization, the IRGC.  This case is an example of yet another flagrant attempt by the Government of Iran, not merely to silence those who speak out against them, but to take the lives of American citizens exercising their constitutionally protected rights here in this country.  As we remain unwavering in our mission to protect the American people, the FBI will continue to aggressively pursue justice against anyone attempting to use violence to violate our freedoms and way of life.”

FBI Assistant Director in Charge David Sundberg said: “The charges announced today further demonstrate the IRGC's continued campaign to silence and kill Americans who criticize the Iranian regime.  Through collaboration with FBI New York's Joint Terrorism Task Force and federal prosecutors at the Justice Department and the U.S. Attorney’s Office, we have successfully disrupted the defendants’ alleged plots to fulfill Iran’s goals of permanently eliminating voices of opposition. We vow to continue to work with our partners to stop IRGC operatives and associates who seek to harm our citizens on our soil.”

According to the allegations contained in the Complaint charging the defendants and other public statements and filings:[1] 

The Government of the Islamic Republic of Iran (the “Government of Iran”) is actively targeting nationals of the United States and its allies living in countries around the world for attacks, including assault, kidnapping, and murder, both to repress and silence dissidents critical of the Iranian regime and to take vengeance for the January 2020 death of then-Commander of the Islamic  Revolutionary Guard Corps (“IRGC”) Qods Force (“IRGC-QF”), Qasem Soleimani, who was killed by a U.S. drone strike in Baghdad.  The IRGC is an Iranian military and counterintelligence agency under the authority of Iran’s Supreme Leader, comprised of components including an external operations force, the IRGC-QF, and has been designated as a foreign terrorist organization by the U.S. Secretary of State since April 15, 2019. The IRGC has publicly stated its desire to avenge the death of Soleimani, and, among its activities, the IRGC plots and conducts attack operations outside Iran targeting U.S. citizens residing in the United States and abroad.

SHAKERI is an IRGC asset residing in Tehran, Iran. SHAKERI immigrated to the United States as a child and was deported in or about 2008 after serving 14 years in prison for a robbery conviction.  In recent months, SHAKERI has used a network of criminal associates he met in prison in the United States to supply the IRGC with operatives to conduct surveillance and assassinations of IRGC targets.  Two members of SHAKERI’s network are his co-defendants, LOADHOLT and RIVERA.  At SHAKERI’s instruction, LOADHOLT and RIVERA have spent months surveilling a U.S. citizen of Iranian origin residing in the United States (“Victim-1”).  Victim-1 is an outspoken critic of the Iranian regime and has been the target of multiple prior plots for kidnapping and/or murder directed by the Government of Iran.  In exchange for SHAKERI’s promise of $100,000, RIVERA and LOADHOLT repeatedly sought to locate Victim-1 for murder.

During their efforts to locate and kill Victim-1, SHAKERI, LOADHOLT, and RIVERA shared messages about their progress and photographs relating to their scheme.  For example, in or about February 2024, RIVERA and LOADHOLT messaged about an incoming payment from SHAKERI, and then traveled to Fairfield University, where Victim-1 was scheduled to appear, and took photographs on campus.  In or about April 2024, SHAKERI sent RIVERA a series of voice notes discussing their efforts to locate and kill Victim-1.  In one voice note, SHAKERI told RIVERA that Victim-1 spent most of her time in particular locations of her home, and told RIVERA that “you just gotta have patience . . . You gotta wait and have patience to catch her either going in the house or coming out, or following her out somewhere and taking care of it.  Don’t think about going in.  In is a suicide move.”  On several occasions over the last several months, consistent with this instruction from SHAKERI, RIVERA and/or LOADHOLT have surveilled a location in Brooklyn that they had identified as associated with Victim-1.     

In addition, according to statements made by Shakeri in recorded interviews with law enforcement agents, the IRGC has also tasked Shakeri with carrying out other assassinations against U.S. and Israeli citizens located in the United States.  In particular, Shakeri has informed law enforcement that he was tasked on October 7, 2024, with providing a plan to kill President-elect Donald J. Trump.  During the interview, Shakeri claimed he did not intend to propose a plan to kill Trump within the timeframe set by the IRGC.  He also stated he was tasked with surveilling two Jewish American citizens residing in New York City and offered $500,000 by an IRGC official for the murder of either victim.  He was also tasked with targeting Israeli tourists in Sri Lanka.

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SHAKERI, 51, of Iran, RIVERA, 49, of Brooklyn, New York, and LOADHOLT, 36, of Staten Island, New York, have all been charged with murder-for-hire, which carries a maximum penalty of 10 years in prison; conspiracy to commit murder-for-hire, which carries a maximum penalty of 10 years in prison; and money laundering conspiracy, which carries a maximum penalty of 20 years in prison.

SHAKERI has also been charged with conspiring to provide material support to a foreign terrorist organization, which carries a maximum penalty of 20 years in prison;  providing material support to a foreign terrorist organization, which carries a maximum penalty of 20 years in prison; and conspiracy to violate the International Emergency Economic Powers Act and sanctions against the Government of Iran, which carries a maximum penalty 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 defendant would be imposed by a judge.

Mr. Williams praised the outstanding investigative work of the FBI’s New York Joint Terrorism Task Force, which principally consists of agents and analysts from the FBI and detectives from the New York City Police Department, and the FBI Washington Field Office.  Mr. Williams also thanked the Department of Justice’s National Security Division, U.S. Customs and Border Protection New York Field Office, the Drug Enforcement Administration New York Division, and the New York State Police.

This case is being handled by the Office’s National Security and International Narcotics Unit.  Assistant U.S. Attorneys Jacob Gutwillig and Michael Lockard, and Special Assistant U.S. Attorney Julie Isaacson are in charge of the prosecution, with assistance from National Security Division Trial Attorneys Dmitry Slavin of the Counterterrorism Section, and Christopher Rigali and Leslie Esbrook of the Counterintelligence and Export Control Section.

The charges in the Complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.

[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.

Damian Williams, the United States Attorney for the Southern District of New York, announced today that RICARDO FERGUSON, a/k/a “Maybach,” was sentenced to life in prison by U.S. District Court Judge Richard M. Berman for the December 5, 2021 murder of Robert Brown, Sr., inside of Aqueduct Park in the Bronx. FERGUSON was convicted of murder, robbery, and drug charges following a six-day trial in June 2024.   FERGUSON shot Brown in the head and attempted steal crack cocaine from Brown during a dispute over drugs. 

U.S. Attorney Damian Williams said: “Ricardo Ferguson used violence and intimidation to maintain control over his drug operation. In furtherance of that drug operation, he executed Robert Brown in a public park, in broad daylight, in front of several witnesses. For this senseless act of violence, Ferguson will spend the rest of his life in prison. Today’s sentence fittingly underscores the craven nature of Ferguson’s actions. We will continue to aggressively pursue justice in cases involving such wanton acts of violence. I want to thank our law enforcement partners and the career prosecutors from this Office for their tireless efforts in pursuing justice in this case.”         

According to the allegations in the Indictment and evidence at trial:

FERGUSON and others participated in a conspiracy to distribute crack cocaine in the vicinity of Aqueduct Park  in the University Heights neighborhood of the Bronx.  In the months leading up to the murder, FERGUSON and his co-conspirators threatened Robert Brown, Sr. because Brown had been selling bags containing larger quantities of crack cocaine than the other dealers in the park. On December 5, 2021, FERGUSON and a co-conspirator attacked and attempted to rob Brown in Aqueduct Park.  During the attempted robbery, and physical attack, FERGUSON pulled out a gun and shot Brown in the head.  Brown was 63 years old at the time of the murder.

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In addition to the prison term, FERGUSON was sentenced to 120 months to run consecutive to the sentence of life in prison, and five years of supervised release.

Mr. Williams praised the outstanding investigative work of the New York City Police Department (“NYPD”), the Special Agents and NYPD Task Force Officers from the Special Investigations Division assigned to the Southern District of New York, and the New York/New Jersey High Intensity Drug Trafficking Area analysts.

The case is being handled by the Office’s Violent and Organized Crime Unit.  Assistant U.S. Attorneys Dominic Gentile, Jun Xiang, Mathew Andrews, and Peter Davis are in charge of the prosecution, with the assistance of Paralegal Specialist Ananya Sankar.

Damian Williams, the United States Attorney for the Southern District of New York, announced that TROY CARUSO, the owner and chief executive officer of a commercial construction and contracting company headquartered in New York, New York (the “Contracting Company”), and JOHN NOLAN, a senior executive at the Contracting Company, pled guilty Friday, November 1, 2024, to conspiring to commit honest services wire fraud in connection with their scheme to pay kickbacks to a senior project manager at a Fortune 500 real estate services firm in order to obtain contracting work.  CARUSO and NOLAN pled guilty before U.S. District Judge Lewis J. Liman, who is scheduled to sentence CARUSO on February 12, 2025, and NOLAN on February 13, 2025.

U.S. Attorney Damian Williams said: “Corruption has no place in our business landscape.  Troy Caruso and John Nolan sought to exploit the system for their own benefit, but today’s outcome shows that integrity will prevail.  This Office is dedicated to ensuring that the integrity of our contracting processes is upheld, and we will relentlessly pursue those who engage in such dishonest schemes.”

According to the documents filed in this case, including the Indictment and the plea agreements of CARUSO and NOLAN, and statements made in Court: 

From at least in or about February 2021, up to and including in or about September 2023, CARUSO and NOLAN agreed to pay, and did pay, kickbacks to an employee of a global and publicly traded commercial real estate services company (the “Real Estate Firm”) in exchange for assistance and preferential treatment so that the Contracting Company would be awarded projects managed by the Real Estate Firm (the “Kickback Scheme”).

In or about March 2021, CARUSO and NOLAN were introduced by an individual (“CC-1”) to a senior project manager at the Real Estate Firm (“CC-2”).  CC-2 managed the process by which contracting companies bid for, and were awarded, contracts to work on construction projects for various of the Real Estate Firm’s clients. Beginning in or about March 2021, because of the Kickback Scheme, CC-2 took a series of actions CC-2 otherwise would not have taken to ensure that the Contracting Company was awarded a pre-construction contract and a construction contract relating to a certain project (“Project-1”), which was managed by the Real Estate Firm on behalf of its client, a health services business that provides hospital, medical, and other health services to patients.  For example, CC-2 ensured that the Contracting Company was on the Real Estate Firm’s “bid list” so that it could submit bids relating to Project-1 that it otherwise could not have submitted.  CC-2 also provided non-public information to CARUSO and NOLAN about the bidding process, and recommended the Contracting Company for both the pre-construction contract and the construction contract relating to Project-1.  As a result of the Kickback Scheme and CC-2’s actions, the Contracting Company was awarded the pre-construction and construction contracts for Project-1, the latter of which was valued at approximately $3.55 million (to be paid to the Contracting Company).

In exchange for CC-2’s assistance and preferential treatment, CARUSO and NOLAN agreed to pay kickbacks to CC-2 in the amount of approximately one percent of the construction value of any project managed by the Real Estate Firm that resulted in a contract award to the Contracting Company.  Accordingly, CARUSO and NOLAN agreed to pay CC-2 approximately $35,500 for Project-1, and ultimately paid CC-2 approximately $33,000 in kickbacks for CC-2’s assistance on Project-1.  Most of these payments were made in cash at locations around New York City.  CARUSO and NOLAN also paid CC-1 approximately $15,000 for CC-1’s assistance in the Kickback Scheme, which included connecting CC-2 with CARUSO and NOLAN.

CARUSO and NOLAN attempted to obtain additional contracts from the Real Estate Firm, with CC-2’s assistance as part of the Kickback Scheme.  Between in or about 2022 and in or about 2023, in exchange for CARUSO and NOLAN’s promise of payment for any contract awarded to the Contracting Company, CC-2 provided CARUSO and NOLAN with assistance relating to two additional construction projects managed by the Real Estate Firm that did not result in contract awards to the Contracting Company.

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CARUSO, 57, of Smithtown, New York, and Ludlow, Vermont, and NOLAN, 43, of Brooklyn, New York, each pled guilty to one count of honest services wire fraud conspiracy, which carries a maximum sentence of 20 years in prison.

The statutory maximum penalty is prescribed by Congress and is provided here for informational purposes only, as the defendants’ sentences will be determined by a judge. 

Mr. Williams praised the outstanding investigative work of the Special Agents and the Task Force Officers of the U.S. Attorney’s Office for the Southern District of New York. Mr. Williams also thanked the Federal Bureau of Investigation for their assistance in the investigation. 

This case is being handled by the Office’s Public Corruption Unit.  Assistant U.S. Attorney Jane Kim is in charge of the prosecution.

Damian Williams, the United States Attorney for the Southern District of New York, announced today that RONALD BAUER pled guilty to conspiring to commit securities fraud in connection with his role in a long-running “pump-and-dump” stock manipulation scheme. BAUER pled guilty before U.S. District Judge Paul A. Engelmayer and is scheduled to be sentenced on May 20, 2025. 

U.S. Attorney Damian Williams said: “For years, Ronald Bauer orchestrated a sprawling ‘pump-and-dump’ scheme involving the shares of numerous U.S.-based issuers that preyed on ordinary, retail investors.  While Bauer and his co-conspirators lived outside of the United States, they took advantage of the U.S. markets to perpetrate their fraud and reaped millions upon millions in profits at the expense of the victims. Today’s guilty plea should send a clear message that this Office is committed to holding market manipulators accountable no matter how hard they try to conceal their crimes.” 

According to allegations in the Indictment, public filings, and statements made in court: 

BAUER, a/k/a “Patek,” a citizen of Canada and the United Kingdom who resided in the United Kingdom, orchestrated numerous “pump-and-dump” schemes, controlling various aspects of the plans.  The Securities and Exchange Commission (“SEC”) had previously filed securities fraud claims against BAUER in 2005 for engaging in an alleged market manipulation scheme that was alleged to have issued false and misleading press releases while secretly dumping tens of millions of shares into the inflated market that BAUER and his associates had created.  In 2006, without admitting or denying the allegations, BAUER consented to the entry of a judgment against him providing for injunctive relief, barring BAUER from serving as an officer or director of a public company or participating in an offering of penny stock for a period of five years, and payment of disgorgement of $840,000.

As he admitted in connection with his guilty plea, BAUER and his co-conspirators participated in a conspiracy to commit securities fraud with respect to seven issuers: Cantabio Pharmaceuticals Inc. (CTBO) (previously Lion Consulting Group (LIOC)); Virtus Oil and Gas Corp. (VOIL) (previously Curry Gold Corp. (CURGD)); Steampunk Wizards (SPWZ) (previously Freedom Petroleum (FPET)); Black Stallion Oil and Gas Inc. (BLKG) (previously Secure IT Corp.); PetroTerra Corp. (previously Loran Connection Corp (LRNC)); Black River Petroleum (BRPC) (previously American Copper Corp. (AMCU)); and Cyberfort Software Inc. (CYBF) (previously Patriot Berry Farms (PBFI)) (collectively, the “Issuers”).  

To perpetrate the “pump-and-dump” scheme, BAUER and his co-conspirators obtained ownership and control of all or the vast majority of the unrestricted (i.e., free trading) stock of the Issuers.  BAUER and his co-conspirators sought to conceal their beneficial ownership of these controlling interests in the shares of the Issuers by causing their shares to be distributed to and divided amongst nominee entities that had been established by a Swiss corporation called Blacklight, S.A.  These entities were nominally owned by unrelated third parties but were, in fact, controlled by BAUER or his co-conspirators.  Thereafter, BAUER and his co-conspirators retained trading authority over the blocks of shares of the Issuers held by the Blacklight nominee entities and BAUER regularly provided trading instructions with respect to these shares to executives or employees at Blacklight.  In addition, BAUER and his co-conspirators effectively controlled or otherwise maintained significant influence over the management of the Issuers during the “pump-and-dump” scheme. 

At times, BAUER and his co-conspirators caused nominees to engage in “match trades”—i.e., place both buy and sell orders in the same stock on the same day—for no legitimate economic purpose.  Furthermore, BAUER and his co-conspirators financed and coordinated promotional campaigns touting the Issuers to stoke trading interest in the Issuers’ stock, though without publicly disclosing their relationship to the promotional campaigns, their controlling interest, or their intent to sell a significant percentage of their holdings into the buying interest that they intended the promotional campaigns would generate.  BAUER and his co-conspirators took steps to conceal the fact that the nominee entities they controlled were the true funding source for the promotional campaigns. 

During or shortly after the promotional campaigns, BAUER and his co-conspirators caused the Blacklight nominee entities to engage in trading activity in the Issuers’ stock, including selling a large percentage of their holdings of the Issuers’ stock, then caused the Blacklight nominee entities they controlled to remit to them the proceeds of the stock sales.

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BAUER, 49, of London, United Kingdom, pled guilty to one count of conspiracy to commit securities fraud, which carries a maximum sentence of five years in prison.  As part of his guilty plea, a money judgment in the amount of $4,377,228.74 was entered against BAUER.

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.

Mr. Williams praised the outstanding work of the Federal Bureau of Investigation.  He further thanked the Justice Department’s Office of International Affairs of the Department’s Criminal Division, as well as authorities in the United Kingdom, in particular the Crown Prosecution Service’s National Extradition Unit. Finally, Mr. Williams also thanked the Securities and Exchange Commission, which separately initiated civil proceedings against BAUER. 

The case is being handled by the Office’s Securities and Commodities Fraud Task Force.  Assistant U.S. Attorneys Jason Richman, Matthew R. Shahabian, Noah Solowiejczyk, and Vladislav Vainberg are in charge of the prosecution.

A jury returned a guilty verdict today against Cholo Abdi Abdullah, 34, on all six counts in the indictment, which included conspiring to provide, and providing, material support to a foreign terrorist organization; and conspiring to murder U.S. nationals, commit aircraft piracy, destroy aircraft, and commit transnational acts of terrorism. Abdullah is scheduled to be sentenced on March 10, 2025.

“The jury found that Cholo Abdi Abdullah, an operative of the terrorist organization al Shabaab, conspired to murder Americans in a terrorist attack reminiscent of the September 11 attack on our country,” said Attorney General Merrick B. Garland. “Today’s conviction ensures that Abdullah will spend decades in prison for his crimes. The Justice Department will never stop working to identify, investigate, and prosecute those who would use heinous acts of violence to harm the American people. It does not matter where terrorists hide, they will not evade the long arm of the law.”

“Today, the jury returned a unanimous verdict holding Cholo Abdi Abdullah responsible for trying to replicate one of history’s most heinous acts of terrorism,” said U.S. Attorney Damian Williams for the Southern District of New York. “Abdullah trained with al Shabaab for months in Somalia to become a deadly terrorist, and then spent months at flight school preparing to hijack a commercial aircraft to crash it into a building in the United States. Abdullah relentlessly pursued his goals and was on the cusp of getting a commercial pilot license while conducting extensive attack planning, such as how to breach an airplane cockpit door. I commend the tireless work of our federal law enforcement partners and the career national security prosecutors of this office. This effort has been carried forward by generations of agents and prosecutors who never relented in their effort to bring Abdullah to justice and keep this nation safe. Thanks to their work and today’s verdict, Abdullah will now serve a lengthy sentence in federal prison.”

According to the indictment and the evidence presented at trial, Abdullah was an operative for the foreign terrorist organization Harakat al-Shabaab al-Mijahideen, commonly known as “al Shabaab,” based in Somalia. After training with al Shabaab for months with AK-47 assault rifles and explosives at a series of safe houses in Somalia, Abdullah participated in a plot to hijack a commercial aircraft and crash it into a building in the U.S. He spent months at a flight school in the Philippines working toward a commercial pilot license, and researched how to obtain pilot jobs, targets such as the tallest buildings in a major American city, transit visas to the U.S., and how to open a cockpit door from the outside. Abdullah also sent encrypted messages reporting his progress to his al Shabaab handler, including his extensive research on post-September 11 hijackings.

Abdullah conspired to commit this attack on behalf Al Shabaab, which has sworn allegiance to al Qaeda and is responsible for numerous deadly terrorist attacks, including attacks that have claimed American lives. Starting in or about 2019, al Shabaab embarked on a string of terrorist attacks as part of an operation in response to the U.S.’s decision to move its embassy in Israel to Jerusalem, which the group has dubbed “Operation Jerusalem Will Never be Judaized.” In particular, these terrorist attacks perpetrated by al Shabaab included an attack on Jan. 15, 2019, at a hotel in Nairobi, Kenya, which resulted in the deaths of approximately 21 people, including a U.S. national and survivor of al Qaeda’s September 11 attack on the World Trade Center in New York; a Sept. 30, 2019, attack on a U.S. military facility in Somalia; and a Jan. 5, 2020, attack on another U.S. facility in Kenya, in which three Americans were killed.  

Abdullah was convicted on six counts: conspiring to provide material support to a foreign terrorist organization, for which he faces a maximum penalty of 20 years in prison; providing material support to a foreign terrorist organization, for which he faces a maximum penalty of 20 years in prison; conspiring to murder U.S. nationals, for which he faces a maximum penalty of life in prison; conspiring to commit aircraft piracy, for which he faces a mandatory minimum penalty of 20 years in prison and a maximum penalty of life in prison; conspiring to destroy aircraft, for which he faces a maximum penalty of 20 years in prison; and conspiring to commit acts of terrorism transcending national boundaries, for which he faces a maximum penalty of life in prison.

The FBI New York Field Office’s Joint Terrorism Task Force investigated the case.

The Justice Department also thanks the FBI Legal Attaché Offices in Nairobi, Kenya, and Manila, Philippines; the FBI’s Hudson Valley Resident Agency; the Office of International Affairs of the Department of Justice’s Criminal Division; the U.S. Department of Defense; the Kenyan Directorate of Criminal Investigations, including the Anti-Terrorism Police Unit and the Joint Terrorism Task Force-Kenya; the Office of the Director of Public Prosecutions in Kenya; the Philippine National Police; the Philippine Department of Justice; the Joint Terrorism Financial Investigations Group-Philippines; and the Philippine Bureau of Immigration, for their assistance.

Assistant U.S. Attorneys Nicholas S. Bradley and Jonathan L. Bodansky for the Southern District of New York and Trial Attorney John Cella of the National Security Division's Counterterrorism Section are prosecuting the case.

Damian Williams, the United States Attorney for the Southern District of New York, announced today that a jury returned a guilty verdict against CHOLO ABDI ABDULLAH on all six counts in the Indictment, which included conspiring to provide, and providing, material support to a foreign terrorist organization; and conspiring to murder U.S. nationals, commit aircraft piracy, destroy aircraft, and commit transnational acts of terrorism.  ABDULLAH is scheduled to be sentenced on March 10, 2025.

U.S. Attorney Damian Williams said: “Today, the jury returned a unanimous verdict holding Cholo Abdi Abdullah responsible for trying to replicate one of history’s most heinous acts of terrorism.  Abdullah trained with al Shabaab for months in Somalia to become a deadly terrorist, and then spent months at flight school preparing to hijack a commercial aircraft to crash it into a building in the United States.  Abdullah relentlessly pursued his goals and was on the cusp of getting a commercial pilot license while conducting extensive attack planning, such as how to breach an airplane cockpit door.  I commend the tireless work of our federal law enforcement partners and the career national security prosecutors of this Office.  This effort has been carried forward by generations of agents and prosecutors who never relented in their effort to bring Abdullah to justice and keep this nation safe.  Thanks to their work and today’s verdict, Abdullah will now serve a lengthy sentence in federal prison.”

As reflected in the Indictment and the evidence presented at trial:

ABDULLAH was an operative for the foreign terrorist organization Harakat al-Shabaab al-Mijahideen, commonly known as “al Shabaab,” based in Somalia.  After training with al Shabaab for months with AK-47 assault rifles and explosives at a series of safe houses in Somalia, ABDULLAH participated in a plot to hijack a commercial aircraft and crash it into a building in the U.S.  He spent months at a flight school in the Philippines working toward a commercial pilot license, and researched how to obtain pilot jobs, targets such as the tallest buildings in a major American city, transit visas to the U.S., and how to open a cockpit door from the outside.  ABDULLAH also sent encrypted messages reporting his progress to his al Shabaab handler, including his extensive research on post-September 11th hijackings.

ABDULLAH conspired to commit this attack on behalf Al Shabaab, which has sworn allegiance to al Qaeda and is responsible for numerous deadly terrorist attacks, including attacks that have claimed American lives.  Starting in or about 2019, al Shabaab embarked on a string of terrorist attacks as part of an operation in response to the U.S.’s decision to move its embassy in Israel to Jerusalem, which the group has dubbed “Operation Jerusalem Will Never be Judaized.”  In particular, these terrorist attacks perpetrated by al Shabaab included an attack on January 15, 2019 at a hotel in Nairobi, Kenya, which resulted in the deaths of approximately 21 people, including a U.S. national and survivor of al Qaeda’s 9/11 attack on the World Trade Center in New York, New York; a September 30, 2019 attack on a U.S. military facility in Somalia; and a January 5, 2020, attack on another U.S. facility in Kenya, in which three Americans were killed.   

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ABDULLAH, 34, was convicted on six counts:  conspiring to provide material support to a foreign terrorist organization, which carries a maximum term of 20 years in prison; providing material support to a foreign terrorist organization, which carries a maximum term of 20 years in prison; conspiring to murder U.S. nationals, which carries a maximum term of life in prison;  conspiring to commit aircraft piracy, which carries a mandatory minimum of 20 years in prison and a maximum term of life in prison; conspiring to destroy aircraft, which carries a maximum term of 20 years in prison; and conspiring to commit acts of terrorism transcending national boundaries, which carries a maximum sentence of life in prison.

Mr. Williams praised the outstanding efforts of the Federal Bureau of Investigation’s (“FBI”) New York Joint Terrorism Task Force, which principally consists of agents from the FBI and detectives from the New York City Police Department (“NYPD”).  Mr. Williams also thanked the FBI Legal Attaché Offices in Nairobi, Kenya, and Manila, Philippines; the FBI’s Hudson Valley Resident Agency; the New York State Police; the Counterterrorism Section of the Department of Justice’s National Security Division; the Office of International Affairs of the Department of Justice’s Criminal Division; the U.S. Department of Defense; the Kenyan Directorate of Criminal Investigations, including the Anti-Terrorism Police Unit and the Joint Terrorism Task Force-Kenya; the Office of the Director of Public Prosecutions in Kenya; the Philippine National Police; the Philippine Department of Justice; the Joint Terrorism Financial Investigations Group-Philippines; and the Philippine Bureau of Immigration, for their assistance.

This case is being handled by the Office’s National Security and International Narcotics Unit.  Assistant U.S. Attorneys Nicholas S. Bradley and Jonathan L. Bodansky are in charge of the prosecution, with assistance from paralegal specialist Sabrina Jim Munoz and trial attorney John Cella of the Counterterrorism Section of the National Security Division.

“Grei Mendez has just admitted she conspired to maintain and distribute large quantities of dangerously toxic fentanyl in a Bronx Daycare center, a place where parents expected their children would be protected and safe.  Mendez’s reprehensible conduct resulted in the needless and tragic death of a child, and the poisoning of three others.  From the beginning, this case has shown the senseless collateral damage caused by the fentanyl epidemic, and should remind us all that the demand for illegal narcotics so often puts innocent bystanders at risk while drug traffickers ruthlessly pursue profits.  This Office will continue to protect New Yorkers from the grave threat fentanyl presents.”

Damian Williams, the United States Attorney for the Southern District of New York, announced that MAYOVANEX RODRIGUEZ, a/k/a “Menorcito,” was sentenced today to 25 years in prison for his criminal activities as a member of the violent Own Every Dollar (“OED”) gang, including the 2022 murder of Anthony Savarese.  RODRIGUEZ previously pled guilty to racketeering conspiracy, murder through use of a firearm, and narcotics conspiracy before U.S. District Judge J. Paul Oetken, who imposed today’s sentence.

U.S. Attorney Damian Williams said: “Mayovanex Rodriguez murdered Anthony Savarese in cold blood.  Our office will not rest in seeking justice for victims of violent crime, and today’s sentence sends a message to members of the Own Every Dollar gang and other violent gangs in the city that no one is above the law.”

As alleged in the Indictment and statements made in public filings and public court proceedings:

RODRIGUEZ is a member of the violent OED gang, a subset of the Trinitarios gang based in and around the Washington Heights area of Manhattan.  The indictments in this case charge 24 members and associates of OED with numerous violent crimes, including five murders and 15 attempted murders.

On February 7, 2022, shortly after midnight, RODRIGUEZ attempted to commit a gunpoint robbery of 41-year-old Anthony Savarese on Andrews Avenue between West 183rd Street and West Fordham Road in the Bronx.  During the attempted robbery, RODRIGUEZ shot Savarese in the head from point-blank range, killing him.

10 other defendants have previously pled guilty in the case.

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In addition to the prison term, RODRIGUEZ, 30, of the Bronx, New York, was sentenced to three years of supervised release.

Mr. Williams praised the outstanding work of the New York City Police Department and the Drug Enforcement Administration.

This case is being handled by the Office’s Narcotics Unit.  Assistant U.S. Attorneys Sarah L. Kushner, Kevin Mead, Ashley C. Nicolas, and Alexandra Messiter are in charge of the prosecution.

Damian Williams, the 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”); Thomas Fattorusso, the Special Agent in Charge of the New York Field Office of the Internal Revenue Service, Criminal Investigation (“IRS-CI”); and Francis J. Russo, the Director of the New York Field Office of U.S. Customs and Border Protection (“CBP”),  announced today the arrest of ARSEN LUSHER, who orchestrated a scheme to defraud more than 20 investors of more than $5 million between 2017 and 2021.  LUSHER was arrested earlier today and will be presented this afternoon before U.S. Magistrate Judge Gary Stein.

U.S. Attorney Damian Williams said: “For years, the defendant allegedly solicited investors’ funds by representing that he had a hugely profitable trucking business.  That wasn’t true, and the defendant instead allegedly used the funds to run a classic Ponzi scheme, enriching himself along the way.  When luck ran out, the victims sustained millions of dollars in losses.  Today’s arrest serves as a stark reminder that the illusion of success built on fraud and deceit will inevitably fail.”

FBI Assistant Director James E. Dennehy said: “For four years, Arsen Lusher allegedly defrauded numerous victims of more than $5 million by cycling their investments to conceal the business’s inability to produce its promised returns, and altered official tax documents to reflect inflated balances in furtherance of this ploy.  The alleged empty assurances allowed the defendant to wrongfully haul in funding from investors and selfishly benefit from their losses.  The FBI will continue to disrupt and hit the brakes on any investment scheme rooted in deceit.”

IRS-CI Special Agent in Charge Thomas Fattorusso said: “It’s alleged Lusher acted with impunity for years, deceiving over 20 investors out of more than five million dollars.  He created a ‘get-rich-quick’ scheme, then sold his victims a dream of high-returns on their investment.  Instead of a profit, investors were left with a loss of money and of trust.  Today’s arrest ensures that Lusher can now be held accountable for his alleged fraud.”

CBP Director Francis J. Russo said: “U.S. Customs and Border Protection is proud to have played an important role in this investigation that resulted in the takedown of an elaborate conspiracy to defraud the United States.  This case serves as a great example of how collaborative law enforcement efforts can dismantle nefarious enterprises that cause economic harm to their competitors.”

According to the allegations in the Complaint unsealed today in Manhattan federal court:[1]

Between 2017 and 2021, LUSHER engaged in a scheme to defraud more than 20 victims of more than $5 million.  LUSHER and a small group of trusted lieutenants acting at LUSHER’s direction solicited investments from the victims, usually by representing that LUSHER had a profitable trucking business that enjoyed delivery and installation contracts with multiple large retailers.  LUSHER and his lieutenants typically represented that the victims’ investments would fund the purchase of trucks, each truck costing around $45,000.  Through written and signed investment agreements, LUSHER and his lieutenants normally guaranteed the victims that their investments would generate high rates of return over a fixed period—typically between 30 and 40 percent over one or two years.  In that way, LUSHER succeeded in raising more than $40 million.

In fact, though, LUSHER did not have a large trucking business.  Instead, LUSHER had a small trucking business that performed a small amount of work—less than $300,000—for just one large retailer.  The amount that LUSHER earned from his legitimate trucking business could not have compensated the victims and produced the promised returns.

Indeed, LUSHER did not use the victims’ funds to purchase trucks or to grow his trucking business.  Instead, for years, LUSHER engaged in a Ponzi scheme: LUSHER paid earlier victims with later victims’ funds.  LUSHER also used the victims’ funds to enrich himself, such as by gambling or shopping for high-end goods.  In that way, LUSHER was able to sustain his scheme for a number of years.  But in early 2021, the scheme collapsed, leaving numerous victims with losses totaling more than $5 million. 

LUSHER used fake documents to carry out his scheme.  For example, in December 2020, LUSHER caused to be sent to a particular victim an apparent U.S. Income Tax Return for an S Corporation for one of the companies that LUSHER controlled and used to perpetrate his scheme.  That alleged tax return was falsified:  the accountant listed as having prepared the return did not, in fact, prepare it.  And in February 2021, LUSHER altered account balances on an email sent by a bank employee to make it appear that LUSHER’s companies had healthy account balances when, in fact, they did not.  Specifically, while the bank employee wrote that LUSHER’s companies had account balances of $8,767.26 and $320.76, LUSHER altered the bank employee’s email before forwarding it to state that his companies had account balances of $1,228,767.26 and $987,320.76 (italics and bold added).  In other words, LUSHER altered the bank employee’s email such that the account balances for his companies were approximately 140 times and 3,078 times greater than they actually were.  LUSHER then caused that falsified email to be sent to a particular victim.

If you believe you or your family has been a victim of LUSHER’s fraud, please contact [email protected].

*                *                *

LUSHER, 49, of Millstone, New Jersey, is charged with one count of wire fraud, which carries a maximum sentence of 20 years in prison, and one count of aggravated identity theft, which carries a mandatory consecutive sentence of two years in prison.

The statutory maximum penalties in this case 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. Williams praised the outstanding investigative work of the FBI, the IRS, the CBP, and the New York City Police Department. 

This case is being handled by the Office’s General Crimes Unit.  Assistant U.S. Attorney Joseph H. Rosenberg 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 in this press release, constitute only allegations, and every fact described should be treated as an allegation.

Damian Williams, the United States Attorney for the Southern District of New York, and Breon Peace, the United States Attorney for the Eastern District of New York, announced today that Assistant United States Attorneys (“AUSAs”) will lead the efforts of their Offices in connection with the Justice Department’s nationwide Election Day Program for the upcoming November 5, 2024, general election.  AUSA David J. Kennedy has been appointed to serve as the District Election Officer (“DEO”) for the Southern District of New York, and AUSA Erik Paulsen has been appointed to serve as the DEO for the Eastern District of New York.  In their capacity as DEOs, these AUSAs are responsible for overseeing the Districts’ handling of Election Day complaints of voting rights concerns, threats of violence to election officials or staff, and election fraud, in consultation with Justice Department Headquarters in Washington, D.C.

U.S. Attorney Damian Williams said: “Free, fair, and accessible elections are critical to democracy, and every voter in the Southern District of New York deserves to cast their vote with confidence in the integrity of our electoral process.  It is the responsibility and privilege of this Office to work together with our law enforcement partners to ensure that New Yorkers are able to exercise their right to vote free of unlawful intimidation or hindrance.  We encourage anyone who finds their civic voting protections subject to any attempted undue interference to please contact the numbers below.”

U.S. Attorney Breon Peace said: “A free election is the cornerstone of our democracy and every citizen in the Eastern District of New York must be able to vote and have their votes counted fairly and without interference, discrimination or threat of violence, Election officials and their staff also must be able to perform their duties without being subjected to unlawful threats of violence or intimidation. My Office will defend those rights with the full force of federal law.”

The Department of Justice plays an important role in deterring and combatting discrimination and intimidation at the polls, threats of violence directed at election officials and poll workers, and election fraud.  The Department will address these violations wherever they occur.  The Department’s longstanding Election Day Program furthers these goals and also seeks to ensure public confidence in the electoral process by providing local points of contact within the Department for the public to report possible federal election law violations.

Federal law protects against such crimes as threatening violence against election officials or staff, intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input.  It also contains special protections for the rights of voters, and provides that they can vote free from interference, including intimidation, and other acts designed to prevent or discourage people from voting or voting for the candidate of their choice.  The Voting Rights Act protects the right of voters to mark their own ballot or to be assisted by a person of their choice (where voters need assistance because of disability or inability to read or write in English).   

U.S. Attorneys Damian Williams and Breon Peace said: “The franchise is the cornerstone of American democracy.  We all must ensure that those who are entitled to the franchise can exercise it if they choose, and that those who seek to corrupt it are brought to justice.  In order to respond to complaints of voting rights concerns and election fraud during the upcoming election, and to ensure that such complaints are directed to the appropriate authorities, AUSAs will be on duty in this District while the polls are open.”

In order to respond to complaints of election fraud or voting rights concerns during the voting period that ends on November 5, 2024, and to ensure that such complaints are directed to the appropriate authorities, the U.S. Attorneys said that their Offices will be available to receive complaints at the following numbers through Tuesday, November 5, 2024:

(646) 369-4739 (for Manhattan, Bronx, Dutchess, Orange, Putnam, Rockland, Sullivan, and Westchester counties) and (718) 254-6790 (for Brooklyn, Queens, Staten Island, Nassau, and Suffolk counties).

Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division in Washington, DC by phone at 800-253-3931 or by complaint form at https://civilrights.justice.gov/ 

In addition, the Federal Bureau of Investigation (“FBI”) will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on Election Day.  The local FBI field office can be reached by the public at (212) 384-1000.

Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division in Washington, DC by phone at 800-253-3931 or by complaint form at https://civilrights.justice.gov/

In the case of a crime of violence or intimidation, please call 911 immediately and before contacting federal authorities.  State and local police have primary jurisdiction over polling places, and almost always have faster reaction capacity in an emergency.

The U.S. Attorneys also noted that the following additional telephone numbers are available on Election Day for citizens to call for routine inquiries, such as where to vote or how late the polls are open, or to register complaints that may concern violations of New York State election laws:

IN NEW YORK CITY

New York City Board of Elections

Main Office                             (866) 868-3692

TTY #: 212-487-5496

IN COUNTIES OUTSIDE NEW YORK CITY

County Boards of Elections

Dutchess                                  (845) 486-2473

Nassau                                     (516) 571-8683

Orange                                     (845) 360-6500

Orange (Spanish language)     (855) 331-2444

Putnam                                    (845) 808-1300

Rockland                                 (845) 638-5172

Suffolk                                    (631) 852-4500

Sullivan                                   (845) 807-0400

Westchester                             (914) 995-5700

Damian Williams, the United States Attorney for the Southern District of New York; Merrick B. Garland, the Attorney General of the United States; Matthew G. Olsen, the Assistant Attorney General for National Security; Christopher A. Wray, the Director of the Federal Bureau of Investigation (“FBI”); and James E. Dennehy, Assistant Director in Charge of the New York Field Office of the FBI, announced the unsealing of murder-for-hire, money-laundering, and sanctions charges against RUHOLLAH BAZGHANDI, a/k/a “Roohollah Azimi,” FNU LNU, a/k/a “Haj Taher,” (“HAJ TAHER”), HOSSEIN SEDIGHI, and SEYED MOHAMMAD FOROUZAN.  The charges are contained in a Superseding Indictment unsealed today in Manhattan federal court.  As detailed in the Superseding Indictment, BAZGHANDI, HAJ TAHER, SEDIGHI, and FOROUZAN contracted members of an Eastern European criminal organization, including RAFAT AMIROV, a/k/a “Farkhaddin Mirzoev,” a/k/a “Pᴎᴍ,”  a/k/a “Rome,” POLAD OMAROV, a/k/a “Araz Aliyev,” a/k/a “Polad Qaqa,” a/k/a “Haci Qaqa,” and ZIALAT MAMEDOV, a/k/a “Ziko,” to murder a U.S. citizen of Iranian origin in New York City who has publicly opposed the Iranian Government and who has previously been the target of similar plots by the Iranian Government.  AMIROV, OMAROV, and MAMEDOV previously were arrested on charges contained in underlying indictments.  AMIROV and OMAROV are in custody in the U.S., pending trial; Mamedov was extradited from the Czech Republic to the Republic of Georgia (“Georgia”) to face charges there.  BAZGHANDI, HAJ TAHER, SEDIGHI, and FOROUZAN, all of whom are based in Iran, remain at large.  The case is pending before U.S. District Judge Colleen McMahon.

U.S. Attorney Damian Williams said: “As alleged, for years, the Government of Iran has attempted to assassinate, on U.S. soil, a U.S. citizen of Iranian origin who is a prominent critic of the Iranian regime.  In January 2023, we unsealed charges alleging that members of an Eastern European crime group engaged in a plot to murder this victim.  As we allege, that group was not acting alone.  Today, we hold their Iranian masters to account, and allege that these Iran-based co-conspirators, including a Brigadier General in the Islamic Revolutionary Guard Corps, directed the murder plot.  By charging these Iran-based defendants, we seek to strike another public blow at the heart of the Government of Iran’s efforts to execute the victim—as well as its lethal targeting, intimidation, and repression of other Iranian dissidents critical of the regime in the U.S. and abroad.”  

Attorney General Merrick B. Garland said: “The Justice Department has now charged eight individuals, including an Iranian military official, for their efforts to silence and kill a U.S. citizen because of her criticism of the Iranian regime.  We will not tolerate efforts by an authoritarian regime like Iran to undermine the fundamental rights guaranteed to every American.  Three of the defendants charged in this horrific plot are now in U.S. custody, and we will never stop working to identify, find, and bring to justice all those who endanger the safety of the American people.”

Assistant Attorney General Matthew G. Olsen said: “Today’s indictment makes plain that the Iranian regime for years has been behind a violent campaign to stalk, intimidate, and arrange the killing of an American dissident on U.S. soil for bravely speaking up for the rights of the Iranian people.  The Department is committed to exposing and holding accountable those in Tehran who believe they can hide their hand in carrying out such reprehensible activities.”

FBI Director Christopher A. Wray said: “Today’s indictment exposes the full extent of Iran’s plot to silence an American journalist for criticizing the Iranian regime.  According to the charges, a brigadier general in the Islamic Revolutionary Guard Corps and a former Iranian intelligence officer, working with a network of conspirators, planned to kill a dissident living in New York City.  The FBI’s investigation led to the disruption of this plot as one of the conspirators was allegedly on their way to murder the victim in New York.  As these charges show, the FBI will work with our partners here and abroad to hold accountable those who target Americans.”

FBI Assistant Director in Charge James E. Dennehy said: “Today we charge four members of the Bazghandi Network – each connected to the Iranian government – as being responsible for hiring members of an Eastern European Organized Crime Group to murder an American citizen in New York City.   This crime was intended to stop an American from exercising their Constitutionally protected right to free speech; to end their life for speaking out publicly against the Iranian regime and its human rights violations.  The FBI will aggressively pursue, disrupt, and hold accountable any foreign government which attempts to murder our citizens on our soil.”

According to the allegations contained in the Superseding Indictment, other court filings, and statements made during court proceedings:[1] 

BAZGHANDI, who resides in Iran, is an Islamic Revolutionary Guard Corps (“IRGC”) Brigadier General and has previously served as chief of an IRGC Intelligence Organization (“IRGC-IO”) counterintelligence office.  In April 2023, the U.S. Secretary of State designated IRGC-IO as a Specially Designated Global Terrorist under Executive Order 14078, relating to hostage-taking and the wrongful detention of U.S. nationals abroad. On the same date, the U.S. Treasury Department sanctioned BAZGHANDI in connection with his involvement with the detention of foreign prisoners held in Iran.  BAZGHANDI was designated by the Treasury Department a second time in June 2023, this time under Executive Order 13224, for his participation in IRGC-IO’s lethal targeting operations.  HAJ TAHER, SEDIGHI, and FOROUZAN (collectively with BAZGHANDI, the “Bazghandi Network”), each of whom resides in Iran, also have connections to the Government of Iran.    

The Bazghandi Network contracted AMIROV, OMAROV, MAMEDOV, and Khalid Mehdiyev to murder, on U.S. soil, a victim (the “Victim”) residing in New York City.  The Victim is a journalist, author, and human rights activist who has publicized the Government of Iran’s human rights abuses and suppression of political expression, including in connection with continuing protests against the regime across Iran.  As recently as 2020 and 2021, Iranian intelligence officials and assets plotted to kidnap the Victim from within the U.S. for rendition to Iran in an effort to silence the Victim’s criticism of the regime.  That plot was disrupted and exposed by the FBI and led to the filing of federal kidnapping conspiracy and other charges in the Southern District of New York against several participants in the plot in U.S. v. Farahani, et al., 21 Cr. 430 (RA) (S.D.N.Y.).

Since at least July 2022, the Bazghandi Network tasked members of the Organization with assassinating the Victim.  The Organization’s participation in the murder-for-hire plot was directed by AMIROV, who resided in Iran and who was tasked with targeting the Victim by individuals in Iran.  On approximately July 13, 2022, AMIROV forwarded targeting information—which Amirov had received from individuals in Iran—about the Victim and the Victim’s residence to OMAROV.  OMAROV, in turn, together with MAMEDOV, directed and collaborated with Mehdiyev, who was residing in Yonkers, New York, to carry out the plot against the Victim. Mehdiyev’s participation in the plot was disrupted when he was arrested near the Victim’s home on or about July 28, 2022, while in possession of the assault rifle, along with 66 rounds of ammunition, approximately $1,100 in cash, and a black ski mask.

In January 2023, AMIROV, OMAROV, and MAMEDOV were arrested overseas.  On January 27, 2023, they were charged publicly for their roles in the plot to assassinate the Victim.  Nevertheless, in the months that followed, members of the Bazghandi Network continued to target the Victim.  For example, in or about March 2023, HAJ TAHER searched for information about the Victim’s family members and SEDIGHI saved an image of the Victim’s residence. As recently as on or about May 1, 2023, BAZGHANDI conducted an Internet search, in Farsi, for, “a person in the house of [the Victim] movie,” and, on the same date, watched a video with the title, “A video of the arrested gunman in front of [the Victim]’s home in New York received by [the Victim’s employer].”

*               *                *

BAZGHANDI, HAJ TAHER, SEDIGHI, and FOROUZAN, all of Iran, have been charged with murder-for-hire, which carries a maximum sentence of 10 years in prison (Count One); conspiracy to commit murder-for-hire, which carries a maximum sentence of 10 years in prison (Count Two); conspiracy to commit money laundering, which carries a maximum sentence of 20 years in prison (Count Three); and conspiring to violate the International Emergency Economic Powers Act and sanctions against the Government of Iran, which carries a maximum sentence of 20 years in prison (Count Six).

AMIROV, 45, of IRAN; OMAROV, 39, of the Czech Republic and Slovenia; Mamedov, 32, of Georgia; also have been charged in Counts One, Two, and Three, as well as with attempted murder in aid of racketeering, which carries a maximum sentence of 10 years in prison (Count Four); and possession and use of a firearm in connection with the attempted murder, which carries a maximum sentence of life imprisonment and a mandatory minimum sentence of 5 years in prison (Count Five).

The potential maximum 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 Judge McMahon.

Mr. Williams praised the outstanding investigative work of the FBI and its New York Field Office Counterintelligence-Cyber Division and the New York FBI Iran Threat Task Force.  Mr. Williams also thanked the New York City Police Department (“NYPD”) and the NYPD Intelligence Bureau, as well as the Department of Justice’s National Security Division and the Department of Justice’s Office of International Affairs, for their assistance.

This case is being handled by the Office’s National Security and International Narcotics Unit. Assistant U.S. Attorneys Michael D. Lockard, Jacob H. Gutwillig, and Matthew J.C. Hellman are in charge of the prosecution, with assistance from Trial Attorneys Christopher Rigali and Leslie Esbrook of the Counterintelligence and Export Control Section, and Dmitriy Slavin of the National Security Division’s Counterterrorism Section.

The charges in the Superseding Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.

[1] As the introductory phrase signifies, the Superseding Indictment, and the description of the Superseding Indictment set forth herein, constitute only allegations, and every fact described should be treated as an allegation.

Damian Williams, 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 the unsealing of an Indictment charging CHRISTIAN LUGO, a/k/a “Coco,” with racketeering conspiracy, murder in aid of racketeering, conspiracy to commit murder in aid of racketeering, attempted murder and assault with a deadly weapon in aid of racketeering, and related firearms charges.  These charges relate to LUGO’s leadership role in a racketeering conspiracy that used fraud and violent intimidation to run a tow truck and auto repair shop known as Certified Auto.  On February 7, 2022, LUGO ordered a co-conspirator who worked for him at Certified Auto to shoot at members of a rival tow truck company, which resulted in the death of Gloria Ortiz.  LUGO was arrested this morning and will be presented today in Manhattan federal court before U.S. Magistrate Judge Gary Stein.  The case is assigned to U.S. District Judge Dale E. Ho.

U.S. Attorney Damian Williams said: “As alleged, Christian Lugo corrupted a tow truck and auto repair business in the Bronx and ran that enterprise by engaging in rampant fraud and serious acts of violence.  Lugo’s alleged rivalry with other tow truck companies culminated in him allegedly ordering another member of his enterprise to shoot at rivals, which resulted in the murder of Gloria Ortiz.  We hope that these charges bring some measure of comfort to Ms. Ortiz’s family and make clear that this Office and our law enforcement partners are dedicated to prosecuting those who allegedly commit senseless violence in the name of increasing their power in a criminal enterprise.” 

FBI Assistant Director in Charge James E. Dennehy said: “Christian Lugo allegedly engaged in a racketeering conspiracy using violence as part of the operation of a Bronx-based tow truck and auto repair business.  As alleged, his callous actions directly led to the 2022 murder of Gloria Ortiz as well as additional crimes and fraud.  FBI New York will not sit idly by and allow violent crime – let alone murder – to be used as a means to operate a business.”

As alleged in the Indictment:[1]

LUGO, along with others, corrupted the operations and activities of Certified Auto, which was a company that provided towing and auto repair services to vehicles damaged in car accidents.  LUGO and his co-conspirators used Certified Auto to commit wire, mail, and insurance fraud and to assert control over the towing and auto repair industry in their territory in the Bronx, New York, using violence and threats of violence.

On February 7, 2022, LUGO ordered a co-conspirator who worked for him at Certified Auto to shoot at members of a rival tow truck company, which the co-conspirator did.  The resulting gunfire caused the death of Gloria Ortiz and non-fatal injuries to two other people outside of the Certified Auto shop.

*                *               *

LUGO, 37, of the Bronx, New York, is charged with racketeering conspiracy, which carries a maximum term of life in prison; murder in aid of racketeering, which carries a mandatory minimum term of life in prison or death; conspiracy to commit murder in aid of racketeering, which carries a maximum term of 10 years in prison; attempted murder and assault with a deadly weapon in aid of racketeering, which carries a maximum term of 20 years in prison; and two firearms offenses, each of which carries a mandatory minimum term of 10 years in prison, which must run consecutive to any other term of imprisonment.

The mandatory minimum and maximum potential sentences in this case 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. Williams praised the work of Special Agents from the FBI New York Safe Streets Task Force and the New York City Police Department.  Mr. Williams also thanked Bronx County District Attorney’s Office for their assistance in the investigation.  He added that the investigation is ongoing.

This case is being handled by the Office’s Violent & Organized Crime Unit.  Assistant U.S. Attorneys Michael Herman, Andrew Jones, and Ni Qian 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 phase 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.

Note: View the superseding indictment here. 

The Justice Department announced today the unsealing of a superseding indictment containing murder-for-hire, money-laundering, and sanctions evasion charges against Ruhollah Bazghandi, also known as Roohollah Azimi; Fnu Lnu, also known as Haj Taher, Haj Taher; Hossein Sedighi; and Seyed Mohammad Forouzan, all of Iran.

“The Justice Department has now charged eight individuals, including an Iranian military official, for their efforts to silence and kill a U.S. citizen because of her criticism of the Iranian regime,” said Attorney General Merrick B. Garland. “We will not tolerate efforts by an authoritarian regime like Iran to undermine the fundamental rights guaranteed to every American. Three of the defendants charged in this horrific plot are now in U.S. custody, and we will never stop working to identify, find, and bring to justice all those who endanger the safety of the American people.”

“Today’s indictment exposes the full extent of Iran’s plot to silence an American journalist for criticizing the Iranian regime,” said FBI Director Christopher Wray. “According to the charges, a brigadier general in the Islamic Revolutionary Guard Corps and a former Iranian intelligence officer, working with a network of conspirators, planned to kill a dissident living in New York City. The FBI’s investigation led to the disruption of this plot as one of the conspirators was allegedly on their way to murder the victim in New York. As these charges show, the FBI will work with our partners here and abroad to hold accountable those who target Americans.”

“Today’s indictment makes plain that the Iranian regime for years has been behind a violent campaign to stalk, intimidate, and arrange the killing of an American dissident on U.S. soil for bravely speaking up for the rights of the Iranian people,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “The Department is committed to exposing and holding accountable those in Tehran who believe they can hide their hand in carrying out such reprehensible activities.”

“As alleged, for years, the Government of Iran has attempted to assassinate, on U.S. soil, a U.S. citizen of Iranian origin who is a prominent critic of the Iranian regime,” said U.S. Attorney Damian Williams for the Southern District of New York. “In January 2023, we unsealed charges alleging that members of an Eastern European crime group engaged in a plot to murder this victim. As we allege, that group was not acting alone. Today, we hold their Iranian masters to account, and allege that these Iran-based co-conspirators, including a Brigadier General in the Islamic Revolutionary Guard Corps, directed the murder plot. By charging these Iran-based defendants, we seek to strike another public blow at the heart of the Government of Iran’s efforts to execute the victim — as well as its lethal targeting, intimidation, and repression of other Iranian dissidents critical of the regime in the U.S. and abroad.”

As detailed in the superseding indictment, Bazghandi, Haj Taher, Sedighi, and Forouzan contracted members of an Eastern European criminal organization, including Rafat Amirov, also known as Farkhaddin Mirzoev, Pᴎᴍ,  and Rome; Polad Omarov, also known as Araz Aliyev, Polad Qaqa, and Haci Qaqa; and Zialat Mamedov, also known as Ziko, to murder a U.S. citizen of Iranian origin in New York City who has publicly opposed the Iranian government and who has previously been the target of similar plots by the Iranian government. Amirov, Omarov, and Mamedov previously were arrested on charges contained in underlying indictments. Amirov and Omarov are in custody in the United States, pending trial; Mamedov was extradited from the Czech Republic to the Republic of Georgia to face charges there. Bazghandi, Haj Taher, Sedighi, and Forouzan, all of whom are based in Iran, remain at large. The case is pending before U.S. District Judge Colleen McMahon for the Southern District of New York.

According to the allegations contained in the superseding indictment, other court filings, and statements made during court proceedings, Bazghandi, who resides in Iran, is an IRGC Brigadier General and has previously served as chief of an IRGC Intelligence Organization (IRGC-IO) counterintelligence office. In April 2023, the U.S. Secretary of State designated IRGC-IO as a Specially Designated Global Terrorist under Executive Order 14078, for hostage-taking and the wrongful detention of U.S. nationals abroad. On the same date, the Treasury Department sanctioned Bazghandi in connection with his involvement with the detention of foreign prisoners held in Iran. Bazghandi was designated by the Treasury Department a second time in June 2023, this time under Executive Order 13224, for his participation in IRGC-IO’s lethal targeting operations. Haj Taher, Sedighi, and Forouzan (collectively with Bazghandi, the Bazghandi Network), each of whom resides in Iran, also have connections to the Government of Iran.   

The Bazghandi Network contracted Amirov, Omarov, Mamedov, and Khalid Mehdiyev to murder, on U.S. soil, a victim residing in New York City. The victim is a journalist, author, and human rights activist who has publicized the Government of Iran’s human rights abuses and suppression of political expression, including in connection with continuing protests against the regime across Iran. As recently as 2020 and 2021, Iranian intelligence officials and assets plotted to kidnap the victim from within the United States for rendition to Iran in an effort to silence the victim’s criticism of the regime. That plot was disrupted and exposed by the FBI and led to the filing of federal kidnapping conspiracy and other charges in the Southern District of New York against several participants in the plot in United States v. Farahani, et al.

Since at least July 2022, the Bazghandi Network tasked members of the organization with assassinating the victim. The organization’s participation in the murder-for-hire plot was directed by Amirov, who resided in Iran and who was tasked with targeting the victim by individuals in Iran. On approximately July 13, 2022, Amirov forwarded targeting information — which Amirov had received from individuals in Iran — about the victim and the victim’s residence to Omarov. Omarov, in turn, together with Mamedov, directed and collaborated with Mehdiyev, who was residing in Yonkers, New York, to carry out the plot against the victim. Mehdiyev’s participation in the plot was disrupted when he was arrested near the victim’s home on or about July 28, 2022, while in possession of the assault rifle, along with 66 rounds of ammunition, approximately $1,100 in cash, and a black ski mask.

In January 2023, Amirov, Omarov, and Mamedov were arrested overseas. On Jan. 27, 2023, they were charged publicly for their roles in the plot to assassinate the victim. Nevertheless, in the months that followed, members of the Bazghandi Network continued to target the victim. For example, in or about March 2023, Haj Taher searched for information about the victim’s family members and Sedighi saved an image of the victim’s residence. As recently as on or about May 1, 2023, Bazghandi conducted an internet search, in Farsi, for, “a person in the house of [the victim] movie,” and, on the same date, watched a video with the title, “A video of the arrested gunman in front of [the victim]’s home in New York received by [the victim’s employer].”

Bazghandi, Haj Taher, Sedighi, and Forouzan, have been charged with murder-for-hire, which carries a maximum penalty of 10 years in prison; conspiracy to commit murder-for-hire, which carries a maximum penalty of 10 years in prison; conspiracy to commit money laundering, which carries a maximum penalty of 20 years in prison; and conspiring to violate the International Emergency Economic Powers Act and sanctions against the Government of Iran, which carries a maximum penalty of 20 years in prison.

Amirov, Omarov, and Mamedov  have also been charged with murder-for-hire, conspiracy to commit murder-for-hire, and conspiracy to commit money laundering. In addition, Amirov, Omarov, and Mamedov were charged with attempted murder in aid of racketeering, which carries a maximum penalty of 10 years in prison and possession and use of a firearm in connection with the attempted murder, which carries a maximum penalty of life in prison and a mandatory minimum penalty of five years in prison. If convicted, a federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

The FBI investigated the case. The Justice Department’s Office of International Affairs assisted with the extradition of Mamedov.

Assistant U.S. Attorneys Michael D. Lockard, Jacob H. Gutwillig, and Matthew J.C. Hellman for the Southern District of New York, Trial Attorneys Christopher Rigali and Leslie Esbrook of the National Security Division’s Counterintelligence and Export Control Section, and Trial Attorney Dmitriy Slavin of the National Security Division’s Counterterrorism Section are prosecuting the case.

An indictment is merely an accusation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

Damian Williams, the United States Attorney for the Southern District of New York, announced that JONATHAN MOYNAHAN LARMORE was convicted of tender offer fraud and securities fraud in connection with LARMORE’s announcement of a fake tender offer to manipulate the stock price of WeWork, Inc. (“WeWork”) and drive up the value of LARMORE’s stock options.  The verdict followed a one-week trial before U.S. District Judge Paul A. Engelmayer, who will sentence LARMORE on March 4, 2025.

U.S. Attorney Damian Williams said: “Last November, Jonathan Moynahan Larmore orchestrated a scheme to trick the market and prey upon investors by artificially inflating the value of WeWork stock for his personal enrichment.  Less than a year later, Larmore stands convicted by a jury of his peers.  This case should be a reminder that we remain vigilant and ready to bring swift justice to those who undermine the integrity of our markets and defraud innocent investors.”

According to the evidence presented in court during the trial:

In or about 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 headquartered in New York, New York, and publicly traded on the New York Stock Exchange.

LARMORE executed his scheme in three steps.  First, on or about October 6, 2023, LARMORE created Cole Capital Funds LLC (“Cole Capital”), a purported real estate investment firm that was, in fact, merely a sham company.  Second, on or about November 1, 2023, and November 2, 2023, LARMORE spent more than $775,000 buying tens of thousands of cheap, short-dated, out-of-the-money WeWork call options (the vast majority of which were set to expire on November 3, 2023 at 4:00 p.m. EDT) and hundreds of thousands of shares of WeWork common stock — the latter primarily because two of LARMORE’s brokerage firms did not authorize him to trade options, but did authorize him to buy equities.  In fact, LARMORE chartered a yacht and attempted to travel into international waters to make these trades, hoping to evade U.S. jurisdiction.  Third, on or about November 3, 2023, LARMORE caused a press release to be published 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.

On or about November 3, 2023, at approximately 5:12 p.m. EDT, the press release about Cole Capital’s purported tender offer was published.  Within approximately one minute of publication, in after-hours trading, WeWork’s share price quickly increased more than 70% from $.85 to $1.45, and continued to rise until 5:31 p.m. EDT, when the stock reached its high of $2.14, which was a more-than-150% increase over the stock price prior to the publication of the press release.

The WeWork call options LARMORE purchased could have made LARMORE millions of dollars if the news of LARMORE’s fraudulent tender offer had caused WeWork’s share price to increase significantly prior to the expiration of LARMORE’s options.  Unfortunately for LARMORE, he mistimed how long it would take to properly format his press release and have it published.  As a result of these delays, LARMORE’s fraudulent press release was not published—and WeWork’s share price did not accordingly rise—until approximately 5:12 p.m. EDT on or about November 3, 2023, which was about an hour after the vast majority of LARMORE’s WeWork call options had expired worthless at 4:00 p.m. EDT that day.

On the following Monday, November 6, 2023, WeWork filed for Chapter 11 bankruptcy protection.  On or about November 10, 2023, the small number of remaining WeWork options LARMORE had purchased expired out of the money and worthless.

*               *                *

LARMORE, 51, of Punta Gorda, Florida, was convicted of one count of tender offer fraud and one count of securities fraud, each of 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 the sentencing of the defendant will be determined by a judge.

Mr. Williams praised the outstanding work of the Federal Bureau of Investigations.  Mr. Williams 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, with the assistance of Paralegal Specialists Emily Cho and Jonathan Oshinsky. 

Damian Williams, the United States Attorney for the Southern District of New York; Frank A. Tarentino III, the Special Agent in Charge of the New York Division of the Drug Enforcement Agency ("DEA"); and Naomi Gruchacz, the Special Agent in Charge of the U.S. Department of Health and Human Services Office of Inspector General (“HHS-OIG”), announced that MORDECHAI BAR pled guilty today to one count of illicitly distributing and dispensing oxycodone and other controlled substances.  BAR pled guilty before U.S. District Judge Cathy Seibel, to whom his case is assigned.

U.S. Attorney Damian Williams said: “Dr. Mordechai Bar hid behind his medical license while he prescribed oxycodone without a legitimate medical need.  Like any drug dealer, he pumped highly addictive substances into the streets for profit, with no regard for the impact on the community.  Along with our law enforcement partners, we will continue to aggresively prosecute physicians who help fuel the opioid crisis.”

DEA Special Agent in Charge Frank A. Tarentino III said: “This guilty plea from Doctor Mordechai Bar is the result of the hard work of our DEA New York’s Westchester Office and our law enforcement partners in pursuing those individuals who put profit and greed over the health and safety of their patients.  The DEA remains committed in pursuing those individuals who exacerbate the ongoing opioid crisis.”

HHS-OIG Special Agent in Charge Naomi Gruchacz said: “This physician accepts responsibility for illegally prescribing controlled substances, an action that is especially egregious given the ongoing opioid epidemic. HHS-OIG will continue to work with our law enforcement partners to ensure individuals involved in fraud schemes that exploit federal health care programs and threaten patient safety are held accountable.”

According to documents filed in this case including the Complaint, the Information, BAR’s plea agreement, and statements made in Court:

Between in or about January 2023 and in or about June 2024, BAR, a physician, repeatedly prescribed oxycodone without a legitimate medical purpose and outside of the usual course of professional practice.  Oxycodone, a Schedule II narcotic, is a highly addictive opioid that is used to treat severe and chronic pain, as well as pain associated with certain forms of cancer and other terminal illnesses.  Oxycodone prescriptions command high prices in the black market because of demand by drug abusers.  BAR often prescribed oxycodone in combination with amphetamines and/or alprazolam, controlled substances that are themselves frequently abused and resold illicitly.  BAR sold these prescriptions for cash, and he did so without performing physical examinations or medical tests on the patients in whose names the prescriptions were issued. 

*                 *                 *

BAR, 71, of Larchmont, New York, pled guilty to one count of distributing oxycodone and other controlled substances, 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 will be determined by a judge.  BAR is scheduled to be sentenced by Judge Seibel on February 18, 2025.

Mr. Williams praised the outstanding efforts of the DEA New York’s Westchester Office, HHS-OIG, the FBI, IRS-CI, and the Organized Crime Drug Enforcement Task Force.  Mr. Williams also thanked the New York State Department of Health Bureau of Narcotic Enforcement for their assistance in this case.

The case is being handled by the Office’s White Plains Division.  Assistant U.S. Attorneys Jorja N. Knauer, David A. Markewitz, and Kathryn Wheelock are in charge of the prosecution. 

Damian Williams, the United States Attorney for the Southern District of New York, announced that TONG HYON SUH, a/k/a “Jason Suh,” was sentenced yesterday to 10 years in prison by U.S. District Judge Cathy Seibel for his attempted enticement of an individual he believed to be a 14-year-old.  The sentencing followed SUH’s guilty plea on March 19, 2024.

U.S. Attorney Damian Williams said: “Tong Hyon Suh attempted to engage in predatory behavior with someone he believed to be a 14-year-old, showing a disturbing disregard for the safety and well-being of minors.  This sentencing underscores our commitment to confronting threats to minors.  We will not rest until those who seek to manipulate and endanger children face the consequences of their actions.  Justice for the vulnerable is not just our duty; it is a promise we intend to keep.”

According to documents filed in this case and statements made in related court proceedings:

Beginning on April 24, 2022, a detective with the Greenwich Police Department (“Detective-1”), who was posing as a 14-year-old girl named “Megan,” communicated via the social platform, Kik, with SUH.  During the communications, SUH identified himself as a 45-year-old Korean male living in New York City and indicated that he wanted to meet with “Megan” for the purpose of having sex.  Detective-1 told SUH that she was a 14-year-old female from Connecticut.

During their communications, SUH told Detective-1, among other things, that he “find[s] the age gap hot tbh” and “tbh on the down low I want a young submissive slut.”  He also told “Megan,” “I can destroy your pussy on the [weekend]” and asked “Megan” for some “slutty pics” that she could “delete after taking.”  SUH identified himself as a a New York attorney with an office in the Bronx, New York, and said he had been a lawyer since he was 26 years old.

During their communications, SUH made a plan to meet with “Megan” to engage in sexual activity with her.  He told “Megan” that he would take a train to Greenwich, Connecticut, use a ride service to pick “Megan” up at her house, and then they would travel together to a residence he would rent.  SUH said that “as soon as the doors close you’re sucking my dick,” “I’m going to keep drilling that little pussy,” and “we’ll record our own little porno, it’ll be fun.”  “Megan” gave SUH an address in Greenwich, Connecticut, and told him that she lived in an apartment located at that address.  “Megan” requested that SUH bring condoms, lollipops, and marijuana.

On May 27, 2022, SUH traveled to Greenwich, Connecticut, via a northbound Metro North train.  He went to the address provided by “Megan,” where he was arrested.  SUH’s briefcase contained a laptop computer, a thumb drive, sneakers, matches, marijuana, toiletries, clothing, an unopened package of lollipops, and six condoms.

At the time of his arrest, “TONG-HYON SUH” was registered as an active attorney in New York with a business address in the Bronx.

*                *                *

In addition to the prison term, SUH, 47, of the Bronx, New York, was sentenced to 10 years of supervised release.

Mr. Williams praised the efforts of the Federal Bureau of Investigation Westchester Safe Streets Task Force and the Greenwich Police Department in connection with this investigation. 

The prosecution is being handled by the Office’s White Plains Division. Assistant U.S. Attorneys Jennifer N. Ong and Marcia S. Cohen are in charge of the prosecution.   

Damian Williams, the United States Attorney for the Southern District of New York, Merrick B. Garland, the Attorney General of the United States, Anne Milgram, the Administrator of the Drug Enforcement Administration (“DEA”), Christopher A. Wray, the Director of the Federal Bureau of Investigation (“FBI”), Matthew G. Olsen, the Assistant Attorney General for National Security, and James E. Dennehy, the Assistant Director in Charge of the FBI’s New York Field Office, announced the filing of murder-for-hire and money laundering charges against Indian government employee VIKASH YADAV, a/k/a “Vikas,” a/k/a “Amanat,” in connection with his role in directing a foiled plot to assassinate a U.S. citizen in New York City. The charges are contained in a Second Superseding Indictment unsealed today in the U.S. District Court for the Southern District of New York. YADAV’s alleged co-conspirator, NIKHIL GUPTA, was previously charged and extradited to the United States on the charges contained in the First Superseding Indictment. YADAV is at large. The case is pending before U.S. District Judge Victor Marrero.

U.S. Attorney Damian Williams said: “Last year, this Office charged Nikhil Gupta for conspiring to assassinate a U.S. citizen of Indian origin on U.S. soil. But, as alleged, Gupta did not work alone. Today, we announce charges against an Indian government employee, Vikash Yadav, who orchestrated the plot from India and directed Gupta to hire a hitman to murder the victim. The right to exercise free speech is foundational to our democracy, and predicated on the notion that we can do so without fear of violence or reprisal, including from beyond our borders.  Let this case be a warning to all those who would seek to harm and silence U.S. citizens:  We will hold you accountable, no matter who and where you are.”

Attorney General Merrick B. Garland said: “The Justice Department will be relentless in holding accountable any person – regardless of their position or proximity to power – who seeks to harm and silence American citizens. As alleged, last year, we foiled an attempt by Vikash Yadav, an Indian government employee, and his co-conspirator, Nikhil Gupta, to assassinate an American citizen on U.S. soil. Today’s charges demonstrate that the Justice Department will not tolerate attempts to target and endanger Americans and to undermine the rights to which every U.S. citizen is entitled.”

Assistant Attorney General Matthew G. Olsen said: “Today’s charges are a grave example of the increase in lethal plotting and other forms of violent transnational repression targeting diaspora communities in the United States. To the governments around the world who may be considering such criminal activity and to the communities they would target, let there be no doubt that the Department of Justice is committed to disrupting and exposing these plots and to holding the wrongful actors accountable no matter who they are or where they reside.”

DEA Administrator Anne Milgram said: “DEA foiled this assassination attempt last year and has continued to trace this case back to an employee of the Indian government whom we charge was an orchestrator of this intricate murder-for-hire scheme. DEA did not relent, and today’s indictment names Vikash Yadav as that alleged mastermind. We charge that Yadav, an employee of the Indian government, used his position of authority and access to confidential information to direct the attempted assassination of an outspoken critic of the Indian government here on U.S. soil. This case was led by the DEA New York Division’s Drug Enforcement Task Force, which is comprised of DEA, the New York State Police, and the New York City Police Department, and is a true testament to the tenacity and determination of our team.”   

FBI Director Christopher A. Wray said: “The defendant, an Indian government employee, allegedly conspired with a criminal associate and attempted to assassinate a U.S. citizen on American soil for exercising their First Amendment rights. The FBI will not tolerate acts of violence or other efforts to retaliate against those residing in the U.S. for exercising their constitutionally protected rights. We are committed to working with our partners to detect, disrupt, and hold accountable foreign nationals or others who seek to engage in such acts of transnational repression.”

FBI Assistant Director James E. Dennehy said: “As alleged in today’s indictment, Vikash Yadav, a senior field officer with the government of India’s Research and Analysis Wing, along with Nikhil Gupta, planned to murder a political activist and prominent critic of the Indian government who is an American citizen in New York City.  The United States government was able to disrupt this abhorrent plot to silence an American before it could be carried out.  Today’s charges make clear the FBI, in conjunction with our DEA and SDNY partners, will not tolerate a foreign government attempting to violate our laws and our sovereignty here in New York or anywhere.”

As alleged in the Second Superseding Indictment and other public court documents:[1]

Last year, YADAV, working together with others, including GUPTA, in India, and elsewhere, directed a plot to assassinate on U.S. soil an attorney and political activist who is a U.S. citizen of Indian origin residing in New York City (the “Victim”).  The Victim is a vocal critic of the Indian government and leads a U.S.-based organization that advocates for the secession of Punjab, a state in northern India that is home to a large population of Sikhs, an ethnoreligious minority group in India.  The Victim has publicly called for some or all of Punjab to secede from India and establish a Sikh sovereign state called Khalistan, and the Indian government has banned the Victim and his separatist organization from India.

During times relevant to the Second Superseding Indictment, YADAV was employed by the Government of India’s Cabinet Secretariat, which houses Indian’s foreign intelligence service, the Research and Analysis Wing. YADAV has described his position as a “Senior Field Officer” with responsibilities in “Security Management” and “Intelligence.”  YADAV also has referenced previously serving in India’s Central Reserve Police Force and receiving “officer[] training” in “battle craft” and “weapons.” YADAV is a citizen and resident of India, and he directed the plot to assassinate the Victim from India.

In or about May 2023, YADAV recruited GUPTA to orchestrate the assassination of the Victim in the United States.  GUPTA is an Indian national who resided in India and has described his involvement in international narcotics and weapons trafficking in his communications with YADAV and others.  At YADAV’s direction, GUPTA contacted an individual whom GUPTA believed to be a criminal associate, but who was in fact a confidential source working with the DEA (the “CS”), for assistance in contracting a hitman to murder the Victim in New York City. The CS introduced GUPTA to a purported hitman, who was in fact a DEA undercover officer (the “UC”).  YADAV subsequently agreed, in dealings brokered by GUPTA, to pay the UC $100,000 to murder the Victim.  On or about June 9, 2023, YADAV and GUPTA arranged for an associate to deliver $15,000 in cash to the UC as an advance payment for the murder.  YADAV’s associate then delivered the $15,000 to the UC in Manhattan.

In or about June 2023, in furtherance of the assassination plot, YADAV provided GUPTA with personal information about the Victim, including the Victim’s home address in New York City, phone numbers associated with the Victim, and details about the Victim’s day-to-day conduct, which GUPTA then passed to the UC.  YADAV directed GUPTA to provide regular updates on the progress of the assassination plot, which GUPTA accomplished by forwarding to YADAV, among other things, surveillance photographs of the Victim.  GUPTA directed the UC to carry out the murder as soon as possible, but GUPTA also specifically instructed the UC not to commit the murder around the time of the Indian Prime Minister’s official state visit to the United States, which was scheduled to begin on or about June 20, 2023.

On or about June 18, 2023, approximately two days before the Indian Prime Minister’s state visit to the United States, masked gunmen murdered Hardeep Singh Nijjar outside a Sikh temple in British Columbia, Canada.  Nijjar was an associate of the Victim, and, like the Victim, was a leader of the Sikh separatist movement and an outspoken critic of the Indian government. On or about June 19, 2023, the day after the Nijjar murder, GUPTA told the UC that Nijjar “was also the target” and “we have so many targets.”  GUPTA added that, in light of Nijjar’s murder, there was “now no need to wait” on killing the Victim.  On or about June 20, 2023, YADAV sent GUPTA a news article about the Victim and messaged GUPTA, “[i]t’s [a] priority now.”

*                *                *

YADAV, 39, and GUPTA, 53, of India, have been charged with murder-for-hire, which carries a maximum sentence of 10 years in prison; conspiracy to commit murder-for-hire, which carries a maximum sentence of 10 years in prison; and 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.

Mr. Williams praised the outstanding investigative work of the DEA’s New York Drug Enforcement Task Force and the Counterintelligence Division of the FBI’s New York Field Office. Mr. Williams also thanked the DEA’s Special Operations Division, the DEA’s Vienna Country Office, the FBI’s Prague Country Office, the Department of Justice’s National Security Division, the Department of Justice’s Office of International Affairs, and the Czech Republic’s National Drug Headquarters for their assistance.  The DEA’s New York Drug Enforcement Task Force comprises agents and task force officers of the DEA, New York City Police Department, and the New York State Police.

This case is being handled by the Office’s National Security and International Narcotics Unit, Violent and Organized Crime Unit, and Narcotics Unit.  Assistant U.S. Attorneys Camille L. Fletcher, Ashley C. Nicolas, and Alexander Li are in charge of the prosecution, with assistance from Trial Attorney Christopher Cook of the National Security Division’s Counterintelligence and Export Control Section and Trial Attorney A.J. Dixon of the National Security Division’s Counterterrorism Section.

The charges contained in the Second Superseding Indictment 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 Second Superseding Indictment and the description of the Second Superseding Indictment set forth herein constitute only allegations, and every fact described should be treated as an allegation.

Note: View the second unsealed superseding indictment here.

The Justice Department today announced the filing of murder-for-hire and money laundering charges against Indian government employee, Vikash Yadav, 39, also known as Vikas, and Amanat, in connection with his role in directing a foiled plot to assassinate a U.S. citizen in New York City. Yadav is charged in a second superseding indictment unsealed today in the U.S. District Court for the Southern District of New York. Yadav’s alleged co-conspirator, Nikhil Gupta, 53, was previously charged and extradited to the United States on the charges contained in the first superseding indictment. Yadav remains at large.

“The Justice Department will be relentless in holding accountable any person — regardless of their position or proximity to power — who seeks to harm and silence American citizens,” said Attorney General Merrick B. Garland. “As alleged, last year, we foiled an attempt by Vikash Yadav, an Indian government employee, and his co-conspirator, Nikhil Gupta, to assassinate an American citizen on U.S. soil.  Today’s charges demonstrate that the Justice Department will not tolerate attempts to target and endanger Americans and to undermine the rights to which every U.S. citizen is entitled.”

“The defendant, an Indian government employee, allegedly conspired with a criminal associate and attempted to assassinate a U.S. citizen on American soil for exercising their First Amendment rights,” said FBI Director Christopher Wray. “The FBI will not tolerate acts of violence or other efforts to retaliate against those residing in the U.S. for exercising their constitutionally protected rights. We are committed to working with our partners to detect, disrupt, and hold accountable foreign nationals or others who seek to engage in such acts of transnational repression.”

“Today’s charges are a grave example of the increase in lethal plotting and other forms of violent transnational repression targeting diaspora communities in the United States,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “To the governments around the world who may be considering such criminal activity and to the communities they would target, let there be no doubt that the Department of Justice is committed to disrupting and exposing these plots and to holding the wrongful actors accountable no matter who they are or where they reside.”

“DEA foiled this assassination attempt last year and has continued to trace this case back to an employee of the Indian government whom we charge was an orchestrator of this intricate murder-for-hire scheme. DEA did not relent, and today’s indictment names Vikash Yadav as an alleged mastermind,” said Administrator Anne Milgram of the Drug Enforcement Administration (DEA). “We charge that Yadav, an employee of the Indian government, used his position of authority and access to confidential information to direct the attempted assassination of an outspoken critic of the Indian government here on U.S. soil. This case was led by the DEA New York Division’s Drug Enforcement Task Force, which is comprised of DEA, the New York State Police, and the New York City Police Department, and is a true testament to the tenacity and determination of our team.”

“Last year, this office charged Nikhil Gupta for conspiring to assassinate a U.S. citizen of Indian origin on U.S. soil,” said U.S. Attorney Damian Williams. “But, as alleged, Gupta did not work alone. Today, we announce charges against an Indian government employee, Vikash Yadav, who orchestrated the plot from India and directed Gupta to hire a hitman to murder the victim. The right to exercise free speech is foundational to our democracy, and predicated on the notion that we can do so without fear of violence or reprisal, including from beyond our borders. Let this case be a warning to all those who would seek to harm and silence U.S. citizens: we will hold you accountable, no matter who and where you are.” 

As alleged in the second superseding indictment and other public court documents, in 2023, Yadav, working together with others, including Gupta, in India, and elsewhere, directed a plot to assassinate on U.S. soil an attorney and political activist who is a U.S. citizen of Indian origin residing in New York City (the victim). The victim is a vocal critic of the Indian government and leads a U.S.-based organization that advocates for the secession of Punjab, a state in northern India that is home to a large population of Sikhs, an ethnoreligious minority group in India. The victim has publicly called for some or all of Punjab to secede from India and establish a Sikh sovereign state called Khalistan, and the Indian government has banned the victim and his separatist organization from India.

During times relevant to the second superseding indictment, Yadav was employed by the Government of India’s Cabinet Secretariat, which houses Indian’s foreign intelligence service, the Research and Analysis Wing. Yadav has described his position as a “senior field officer” with responsibilities in “security management” and “intelligence.” Yadav also has referenced previously serving in India’s Central Reserve Police Force and receiving “officer[] training” in “battle craft” and “weapons.” Yadav is a citizen and resident of India, and he directed the plot to assassinate the Victim from India.

In or about May 2023, Yadav recruited Gupta to orchestrate the assassination of the victim in the United States. Gupta is an Indian national who resided in India and has described his involvement in international narcotics and weapons trafficking in his communications with Yadav and others. At Yadav’s direction, Gupta contacted an individual whom Gupta believed to be a criminal associate, but who was in fact a confidential source (the CS) working with the DEA, for assistance in contracting a hitman to murder the victim in New York City. The CS introduced Gupta to a purported hitman, who was in fact a DEA undercover officer (the UC). Yadav subsequently agreed, in dealings brokered by Gupta, to pay the UC $100,000 to murder the victim. On or about June 9, 2023, Yadav and Gupta arranged for an associate to deliver $15,000 in cash to the UC as an advance payment for the murder. Yadav’s associate then delivered the $15,000 to the UC in Manhattan.

In or about June 2023, in furtherance of the assassination plot, Yadav provided Gupta with personal information about the victim, including the victim’s home address in New York City, phone numbers associated with the victim, and details about the victim’s day-to-day conduct, which Gupta then passed to the UC. Yadav directed Gupta to provide regular updates on the progress of the assassination plot, which Gupta accomplished by forwarding to Yadav, among other things, surveillance photographs of the victim. Gupta directed the UC to carry out the murder as soon as possible, but Gupta also specifically instructed the UC not to commit the murder around the time of the Indian Prime Minister’s official state visit to the United States, which was scheduled to begin on or about June 20, 2023.

On or about June 18, 2023, approximately two days before the Indian Prime Minister’s state visit to the United States, masked gunmen murdered Hardeep Singh Nijjar outside a Sikh temple in British Columbia, Canada. Nijjar was an associate of the victim, and, like the victim, was a leader of the Sikh separatist movement and an outspoken critic of the Indian government. On or about June 19, 2023, the day after the Nijjar murder, Gupta told the UC that Nijjar “was also the target” and “we have so many targets.” Gupta added that, in light of Nijjar’s murder, there was “now no need to wait” on killing the Victim. On or about June 20, 2023, Yadav sent Gupta a news article about the victim and messaged Gupta, “[i]t’s [a] priority now.”

Yadav and Gupta of India have been charged with murder-for-hire, which carries a maximum penalty of 10 years in prison; conspiracy to commit murder-for-hire, which carries a maximum penalty of 10 years in prison; and conspiracy to commit money laundering, which carries a maximum penalty of 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

The DEA New York Division and the FBI New York Field Office’s Counterintelligence Division are investigating the case, with valuable assistance provided by the DEA Special Operations Division, DEA Vienna Country Office, FBI Prague Country Office, Justice Department’s Office of International Affairs, and Czech Republic’s National Drug Headquarters.

Assistant U.S. Attorneys Camille L. Fletcher, Ashley C. Nicolas, and Alexander Li for the Southern District of New York are prosecuting the case with assistance from Trial Attorney Christopher Cook of the National Security Division’s Counterintelligence and Export Control Section and Trial Attorney A.J. Dixon of the National Security Division’s Counterterrorism Section.

An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

Damian Williams, the United States Attorney for the Southern District of New York, announced today the unsealing of an Indictment charging KENAN TARIVERDI, NAZIM TARIVERDI, DILSHOD ISLAMOV, and ALVARO GEOVANNI QUIJADA LEMUS.  The Indictment charges KENAN TARIVERDI, NAZIM TARIVERDI, and DILSHOD ISLAMOV with operating an extensive no-fault insurance fraud that submitted more than $11 million in fraudulent claims for psychological testing and services—and for laundering the proceeds of that fraud through a network of illicit check cashers, including ALVARO GEOVANNI QUIJADA LEMUS.  The defendants were arrested this morning and were presented today before U.S. Magistrate Judge Sarah L. Cave in Manhattan Federal Court. 

U.S. Attorney Damian Williams said: “No fault insurance fraud schemes raise costs for everyone and exploit a system designed to make healthcare more accessible. As alleged in the indictment, Kenan Tariverdi, Nazim Tariverdi, and Dilshod Islamov orchestrated a deceitful, complex scheme to cheat insurance providers out of millions of dollars. These defendants then allegedly worked with a network of money launderers, including Alvaro Geovanni Quijada Lemus, to profit from their crime. I commend the FBI and our dedicated team of prosecutors for their outstanding work in dismantling this massive fraud operation.”

According to allegations in the Indictment unsealed today in Manhattan Court[1]:

KENAN TARIVERDI, NAZIM TARIVERDI, and ISLAMOV devised a fraudulent scheme to take advantage of New York’s no fault insurance law, which enables the driver and passengers of a vehicle registered and insured in New York State to obtain benefits of up to $50,000 per person for injuries suffered in a car accident, regardless of fault. Under New York State law, medical corporations are unable to bill insurance companies for no-fault benefits if the medical facilities are controlled by non-physicians.  KENAN TARIVERDI, NAZIM TARIVERDI, and ISLAMOV defrauded insurance carriers by submitting insurance claims from medical corporations that were nominally owned by licensed medical professionals but were in fact owned and controlled by KENAN TARIVERDI, NAZIM TARIVERDI, and ISLAMOV, who were not licensed medical practitioners.  If insurance companies had known that the nominee medical corporations were actually owned and controlled by KENAN TARIVERDI, NAZIM TARIVERDI, and ISLAMOV, the insurance companies would have denied payment for claims submitted by the nominee medical corporations. 

KENAN TARIVERDI, NAZIM TARIVERDI, and ISLAMOV also carried out their fraudulent scheme by conspiring to bill insurances companies in the names of psychologists, medical professionals, and medical corporations under their nominal control for services that the psychologists and medical professionals did not actually perform.  When preparing these fraudulent bills, the conspiracy operated by KENAN TARIVERDI, NAZIM TARIVERDI, and ISLAMOV frequently used the license information and signatures of psychologists and medical professionals on fraudulent billing records submitted to insurance companies. 

Additionally, KENAN TARIVERDI, NAZIM TARIVERDI, and ISLAMOV conspired to bill insurance companies for expensive procedures, including psychological testing and treatment, regardless of medical necessity.  These unnecessary medical procedures were carried out pursuant to billing protocols that the defendants and their coconspirators designed and implemented at various clinics in and around New York City to maximize the dollar amounts on insurance claims, rather than to provide necessary medical and psychological treatment.

As a result of their fraudulent scheme, KENAN TARIVERDI, NAZIM TARIVERDI, and ISLAMOV caused insurance providers to be billed over approximately $10 million in fraudulent claims for psychological testing and services. 

KENAN TARIVERDI, NAZIM TARIVERDI, and ISLAMOV also carried out a scheme to launder the proceeds of their conspiracy.  Their money laundering scheme operated by taking control over various bank accounts that received payments derived from the fraudulent claims that the conspiracy operated by KENAN TARIVERDI, NAZIM TARIVERDI, and ISLAMOV submitted to insurance companies.  Such bank accounts were nominally held by psychologists or medical professionals, but KENAN TARIVERDI, NAZIM TARIVERDI, and ISLAMOV gained control over them through various means, including by directing the psychologists and medical professionals to sign stacks of blank checks drawn on their accounts.  KENAN TARIVERDI, NAZIM TARIVERDI, and ISLAMOV then used those checks to transfer funds into a network of shell companies that were controlled by the money laundering conspiracy. 

KENAN TARIVERDI, NAZIM TARIVERDI, and ISLAMOV used a network of money launderers to cash checks from their shell companies.  ALVARO GEOVANNI QUIJADA-LEMUS was one unlicensed check casher who, in exchange for a fee, provided cash in exchange for checks the shell companies.  QUIJADA-LEMUS, in turn, sold approximately 50 checks from the shell companies for approximately $200,000 to an individual cooperating with law enforcement.        

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KENAN TARIVERDI, 55, of Staten Island, New York; NAZIM TARIVERDI, 32, of Staten Island, New York; and DILSHOD ISLAMOV, 43, of Brooklyn, New York are each charged with one count of conspiracy to commit healthcare fraud, which carries a maximum sentence of 20 years in prison, one count of conspiracy to commit wire fraud, which carries a maximum sentence of 20 years in prison, one count of aggravated identity theft, which carries a mandatory two-year consecutive sentence, and one count of conspiracy to commit money laundering, which carries a maximum sentence of 20 years in prison.  ALVARO GEOVANNI QUIJADA-LEMUS, 38, of Holmdel, New Jersey, is charged with one count of conspiracy to commit money laundering, which carried a maximum sentence of 20 years in prison one count of money laundering, which carries a maximum sentence of 20 years in prison, and one count of operation of an unlicensed money transmitting business, which carries a maximum of five 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 would be determined by a judge. 

Mr. Williams praised the outstanding work of the Federal Bureau of Investigation. 

The case is being handled by the Office’s Illicit Finance and Money Laundering Unit.  Assistant U.S. Attorneys Cecilia Vogel, Christopher Brumwell, and Vladislav Vainberg are in charge of the prosecution.

[1] As the introductory phrase signifies, the entirety of the texts of the Indictments and the descriptions of the Indictments set forth herein constitute only allegations and every fact described should be treated as an allegation.

Damian Williams, the United States Attorney for the Southern District of New York, announced that Joy Harris, a former New York City Housing Authority (“NYCHA”) superintendent, was convicted of bribery and extortion under color of official right for soliciting and accepting tens of thousands of dollars from contractors in exchange for awarding those contractors no-bid contracts at NYCHA developments.  The verdict followed a one-week trial before U.S. District Judge Lewis A. Kaplan, who will sentence HARRIS on February 26, 2025.

U.S. Attorney Damian Williams said: “Corruption is an insidious crime—difficult to detect, corrosive in its effect on government agencies, and damaging to public trust in government institutions. Joy Harris’s years-long abuse of her position to demand tens of thousands of dollars in bribes betrayed her duty to NYCHA residents, the City of New York, and taxpayers.  The jury’s unanimous verdict sends a clear message that those who use their public offices for personal gain will be held accountable.”

According to the evidence presented in court during the 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 assistant superintendent and superintendents, could hire a contractor of their choosing without soliciting multiple bids.

HARRIS, an assistant superintendent and superintendent at four different NYCHA developments in Manhattan between 2015 and 2021, demanded and accepted cash in exchange for NYCHA contracts.  She required contractors to pay bribes up front in order to be awarded the contracts or required 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 tens of thousands of dollars in bribes in exchange for awarding contracts worth hundreds of thousands of dollars.

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HARRIS, 49, of Bushkill, Pennsylvania, was convicted of one count of federal program bribery, which carries a maximum term of 10 years in prison, and one count of extortion under color of official right, which carries a maximum term 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 defendant will be determined by the judge.

Mr. Williams 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.

Of the 70 current and former NYCHA employees charged with bribery and extortion offenses in February 2024, 55 of the defendants have now pled guilty or been convicted at trial.  The charges against the remaining defendants are pending.

This case is being handled by the Office’s Public Corruption Unit. Assistant U.S. Attorneys Jerry J. Fang, Meredith Foster, Sheb Swett, Jacob R. Fiddelman, and Catherine Ghosh are in charge of the prosecution, with the assistance of Paralegal Specialists Jayda Foote and Nandita Vasantha.

Damian Williams, the United States Attorney for the Southern District of New York; and Patrick J. Freaney, Special Agent in Charge of the New York Field Office of the United States Secret Service (“USSS”), announced the unsealing of a Superseding Indictment charging DAJAHN MCBEAN, a/k/a “Jeezy Mula,” a/k/a “Freeze,” KARL SMITH, a/k/a “Pacavell,” and CHELSEY HARRIS, a/k/a “Ms. Chinn” with murder‑for‑hire conspiracy resulting in personal injury and death, stalking resulting in life threatening bodily injury and death, and conspiracy to destroy records. These charges relate to MCBEAN, SMITH, and HARRIS’s roles in attempting to murder an individual in December 2023, which resulted in the shooting death of Clarisa Burgos on December 26, 2023. MCBEAN is already serving a federal sentence for directing a separate gang-related shooting in January 2017 and will be presented today in Manhattan federal court before U.S. Magistrate Judge Sarah L. Cave. SMITH and HARRIS were arrested previously and are detained pending trial. The case is assigned to U.S. District Judge Analisa Torres.

U.S. Attorney Damian Williams said: “As alleged, Dajahn McBean and his co-conspirators planned and carried out an elaborate plot to murder another individual by causing others to shoot at the target several times in New York City. During one of those shootings, an innocent bystander, Clarisa Burgos, was killed.  McBean allegedly directed this murder plot using a contraband cellphone from within a federal jail while waiting to be sentenced for a separate gang related shooting. Thanks to the hard work of the prosecutors in this Office and our law enforcement partners, McBean and his co-conspirators will be held to account for this crime. These charges make clear that this Office and our law enforcement partners are dedicated to prosecuting those who commit violence on our streets and any federal inmate who causes such violence.”

U.S.S.S. Special Agent in Charge Patrick J. Freaney said: "The abiding intent to cause death, as alleged in this murder-for-hire case, is truly shocking. The relentless investigation that followed evinces the Secret Service’s unwavering commitment  to take the worst among us off the streets. I want to thank the NYPD Financial Crimes Task Force for their incredible partnership and devotion to this critical work."

As alleged in public court filings, statements at public court proceedings, and the Superseding Indictment:[1]

In December 2023, MCBEAN was detained at Metropolitan Detention Center in Brooklyn, New York (“MDC Brooklyn”) awaiting sentencing for directing a separate gang-related shooting in January 2017. While in federal custody, MCBEAN feuded over social media with another gang member (“Victim-1”). MCBEAN then used a contraband cellphone from inside MDC Brooklyn to conspire with SMITH and HARRIS, who were at liberty in the community, to lure Victim-1 to various nightclubs in New York City where MCBEAN had arranged for gunmen to kill Victim-1. MCBEAN paid SMITH and HARRIS through intermediaries for their roles in this conspiracy.

The plot to kill Victim-1 resulted in two shootings. First, on December 24, 2023, MCBEAN and his co‑conspirators lured Victim-1 to a nightclub (“Club-1”) in Queens, New York. Outside Club-1, gunmen shot and struck Victim-1’s car multiple times but missed Victim-1. Second, on December 26, 2023, MCBEAN and his co-conspirators tried again to kill Victim-1, this time luring him to a different nightclub (“Club-2”) in Queens. At MCBEAN’s direction from within MDC Brooklyn, gunmen again fired on Victim‑1’s car when it was parked outside Club-2. The bullets struck Victim-1 multiple times, but Victim-1 survived. The bullets also struck and killed Victim‑1’s girlfriend, Clarisa Burgos, who was seated in Victim-1’s car. Clarisa Burgos was twenty-eight years old.

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MCBEAN, 29, of Queens, New York, SMITH, 26, of Queens, New York, and HARRIS, 23, of the Bronx, New York, are charged with one count of murder-for-hire conspiracy resulting in personal injury and death, which carries a mandatory minimum term of life in prison or death; stalking resulting in life threatening bodily injury and death, which carries a maximum term of life in prison; and conspiracy to destroy records, which carries a maximum term of five years in prison.

The mandatory minimum and maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as the sentencing of the defendant will be determined by a judge.

Mr. Williams praised the work of the USSS Financial Crimes Task Force and the New York City Police Department. Mr. Williams also thanked the Special Agents from Homeland Security Investigations’ El Dorado Task Force for their assistance in the investigation. He added that the investigation is ongoing.

This case is being handled by the Office’s Violent & Organized Crime Unit. Assistant U.S. Attorneys Ryan W. Allison, Andrew K. Chan, and Jared D. Hoffman are in charge of the prosecution.

The charges contained in the Superseding Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.

[1] As the introductory phase 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.