Southern District of New York
Press releases recorded for this federal judicial district.
Operator of Tow Truck and Auto Repair Company Charged with Racketeering Conspiracy and MurderRead the Press Release
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.
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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.
Justice Department Announces Murder-For-Hire Charges Against Islamic Revolutionary Guard Corps Brigadier General and Former Intelligence Officer and Members of an Iranian Intelligence NetworkRead the Press Release
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.
Florida Man Convicted of $77 Million Tender Offer FraudRead the Press Release
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.
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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.
New Rochelle Physician Pleads Guilty to Selling Thousands of Oxycodone Pills for CashRead the Press Release
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.
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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.
Bronx Attorney Sentenced to 10 Years in Prison for His Attempted Enticement of A MinorRead the Press Release
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.
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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.
U.S. Attorney Announces Charges Against Indian Government Employee in Connection with Foiled Plot to Assassinate U.S. Citizen in New York CityRead the Press Release
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.”
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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.
yadav_superseding_indictment_s2_23_cr._289.pdf[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.
Justice Department Announces Charges Against Indian Government Employee in Connection with Foiled Plot to Assassinate U.S. Citizen in New York CityRead the Press Release
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.
Four Defendants Charged in Multi-Million Dollar No-Fault Insurance Fraud Scheme and Money Laundering ConspiracyRead the Press Release
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.
islamov_et_al_indictment.pdf[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.
Former NYCHA Superintendent Convicted of Bribery and Extortion OffensesRead the Press Release
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.
Federal Inmate at MDC Brooklyn Charged with Orchestrating Murder-For-Hire Using A Contraband CellphoneRead the Press Release
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.
u.s._v._dajahn_mcbean_et_al_s2_indictment_24_cr._541.pdf[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.
Art Advisor Lisa Schiff Pleads Guilty to Defrauding ClientsRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced today that LISA SCHIFF, a Manhattan-based art advisor focused on contemporary art, pled guilty before United States District Judge J. Paul Oetken to one count of wire fraud for perpetrating a multi-year scheme in which she defrauded the clients of her art advisory business of approximately $6.5 million in connection with the purchase and sale of approximately 55 artworks. SCHIFF will be sentenced by Judge Oetken on January 17, 2025, at 10:30 a.m.
U.S. Attorney Damian Williams said: “For years, Lisa Schiff breached the trust of her art advisory clients by lying to them and diverting millions of dollars her clients had entrusted to her. Instead of using client funds as promised, Schiff used the stolen money to fund a lavish lifestyle. Today’s guilty plea serves as a reminder that the Southern District of New York will vigorously investigate and prosecute those who engage in fraud wherever we may find them, including the art market.”
Assistant Director in Charge James E. Dennehy said: “Lisa Schiff attempted to paint a picture of a successful fine art advisory business, when in reality—as she admitted today—it was actually a multimillion-dollar fraudulent scheme. After half a decade of deceit, Ms. Schiff will now be held accountable for her lies and duplicitous actions. FBI New York will continue to ensure that individuals attempting to defraud their clients are brought to justice.”
According to the Information, plea agreement, and statements made in court:
From 2018 through May 2023, SCHIFF engaged in a scheme to defraud clients of her art advisory business, Schiff Fine Art (“SFA”) by diverting her clients’ funds—profits from the sale of her clients’ artworks or payments they made to purchase artwork—to pay her own personal and business expenses. SCHIFF advised clients regarding the purchase and sale of artworks and bought and sold artworks on behalf of clients in exchange for a commission. In her role as an art advisor, SCHIFF acted as an intermediary between art galleries and auction houses, and her clients, who were art collectors. Typically, when SCHIFF’s clients bought or sold artworks, payments were routed through SCHIFF’s business, SFA. In addition, when SCHIFF sold artworks on behalf of a client, she often had custody or control of the artworks to coordinate the sale. At times, SCHIFF, through SFA, also sold artwork on consignment on behalf of artists and other galleries.
Starting in about 2018, SCHIFF began defrauding her clients in two ways: (1) not remitting payments to her clients when she sold their artwork while not disclosing to her clients that their artworks had, in fact, been sold; and (2) not purchasing artworks on behalf of clients despite representing to her clients that she would purchase certain artworks on their behalf using their funds. Instead of using client funds as promised, SCHIFF diverted her clients’ money to pay her business and personal expenses. SCHIFF lied to her clients and galleries in furtherance of her fraud scheme. For example, when defrauding clients in connection with selling their artwork, SCHIFF at times lied to clients, claiming she had not sold the artwork, or the buyer was delayed in making the payment and SCHIFF still had custody of the artwork when, in fact, SCHIFF had sold the artwork, received payment from the buyer, and delivered the artwork to the buyer. When defrauding clients in connection with purchasing artwork on their behalf, SCHIFF lied to galleries from which she was supposed to purchase artwork on behalf clients, blaming delays in payment on clients when, in fact, clients had already paid SCHIFF for the purchase of the artwork but she had diverted the funds for her own use. Over several years, SCHIFF defrauded at least twelve clients, one artist, the estate of another artist, and one gallery, collectively, of at least approximately $6.5 million. During her fraud, SCHIFF lived lavishly and incurred substantial debts, which she paid in part using her victims’ diverted funds.
In about May 2023, SCHIFF could no longer conceal her scheme due to mounting debts. SCHIFF confessed to several clients that she had stolen their money.
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SCHIFF, 54, a Manhattan resident, pled guilty to one count of wire fraud, which carries a maximum prison term of 20 years. Under the terms of her plea agreement, SCHIFF agreed to forfeit approximately $6.4 million.
The statutory maximum sentence is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Williams praised the outstanding work of the Federal Bureau of Investigation’s Art Crime Team and the FBI/New York Police Department's Joint Major Theft Task Force.
This case is being handled by the Office’s Illicit Finance and Money Laundering Unit. Assistant United States Attorneys Jennifer Ong and Cecilia Vogel are in charge of the prosecution.
Senior Promoter in Cryptocurrency Ponzi Scheme Sentenced to 240 Months in PrisonRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that on October 15, 2024, JUAN TACURI, a senior promoter in the cryptocurrency Ponzi scheme known as Forcount (and later known as Weltsys) was sentenced to the statutory maximum of 240 months in prison by United States District Judge Analisa Torres. The Forcount scheme spanned the globe, ensnared thousands of victim-investors (“Victims”), and in the United States principally targeted Spanish-speaking populations. TACURI was one of the scheme’s most successful promoters and reaped millions of dollars from his participation in the fraud, which he spent on Florida real estate and luxury goods, among other things. Over 20 Victims appeared before the Court to give victim impact statements.
U.S. Attorney Damian Williams said: “Juan Tacuri may have claimed to be involved in cutting- edge cryptocurrency investing, but, in reality, he was running one of the oldest tricks in the book: a Ponzi scheme. Tacuri was one of the most prolific promoters of the Forcount Ponzi scheme, taking in millions of dollars from working class victims. Instead of using victims’ funds as promised, he instead spent it on himself. Today’s sentence should serve as a stark reminder that, in the long run, fraud does not pay.”
According to the Indictment, public filings, and statements made in court:
Forcount was a purported cryptocurrency mining and trading company that promised to earn its victim-investors (“Victims”) profits in exchange for their purchase of purported cryptocurrency-related investment products. The founders and promoters of the scheme, such as TACURI, falsely promised their Victims, among other things, that profits from the company’s cryptocurrency trading and mining would result in guaranteed daily returns on Victims’ investments and the doubling of those investments within six months. In reality, Forcount was not engaging in cryptocurrency trading or mining, and the founder and promoters of the scheme were using Victim funds to pay other Victims, to further promote the schemes, and to enrich themselves.
TACURI traveled throughout the United States where he and others hosted lavish expos and small community presentations aimed at luring Victims to invest in the schemes, including in the Southern District of New York. During larger-scale events, TACURI would present Forcount’s investment products and compensation plan, encourage Victims to invest as a means of achieving financial freedom, and boast about the amount of money he was earning, including by wearing designer clothing to such events. The atmosphere of these events was festive and designed to generate excitement about the schemes.
Victims invested in the Forcount scheme by purchasing investment products from promoters, such as TACURI, using cash, checks, wire transfers, and actual cryptocurrency. Following a Victim’s investment, they would be provided with access to an online portal where they could monitor their purported returns. While Victims saw “profits” accumulate on the scheme’s online portal, most Victims were unable to withdraw any of these so-called profits and ultimately lost their entire investments. By contrast, Forcount’s promoters, like TACURI, siphoned off, in some cases, hundreds of thousands of dollars in Victim funds, which they withdrew as cash, spent on promotional expenses for the schemes, and used for personal expenditures such as luxury goods and real estate.
At least as early as in or about April 2018, Victims who attempted to withdraw money from their online portal accounts had difficulty doing so and, when they complained to promoters, such as TACURI, they were met with excuses, delays, and hidden fees, if they were able to make any withdrawals at all. Despite these complaints, Forcount’s promoters, including TACURI, continued to promote the fraudulent scheme and accept Victims’ investments. As complaints mounted Forcount began offering proprietary crypto-tokens for sale as a means of injecting liquidity into the scheme. TACURI claimed that these tokens, known as “Mindexcoin,” would eventually be worth a significant amount of money when they were accepted by companies for payment for goods and services. This was false. In reality, they were essentially worthless and resulted in further financial loss to Victims. By in or about 2021, the scheme had stopped making payments to Victims and their chief promoters, including TACURI, stopped promoting the schemes, and, in some instances, stopped responding to Victims’ complaints altogether.
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In addition to the prison term, TACURI, 46, of Greenacres, Florida, was sentenced to one year of supervised release and ordered to forfeit $3,610,718.67 and all right and title to a home in Florida that he purchased in part with Forcount Victim funds. TACURI was also ordered to pay at least $3,610,718.67 in restitution.
Mr. Williams praised the outstanding investigative work of Homeland Security Investigations. Mr. Williams also thanked the New York City Police Department, the New York City Sheriff’s Office, the Bureau of Insurance Fraud, Property, and Casualty in the Division of Investigative and Forensic Services of the Florida Department of Financial Services, and the Florida Office of Financial Regulation for their assistance. Mr. Williams also thanked the Securities and Exchange Commission and the Brazilian Federal Police for their assistance.
The case is being handled by the Office’s Illicit Finance and Money Laundering Unit. Assistant U.S. Attorneys Benjamin A. Gianforti and Michael D. Maimin are in charge of the prosecution.
If you believe that you have been victimized by the Forcount/Weltsys Ponzi scheme, please send an email to [email protected].
Husband of Daycare Operator Sentenced to 45 Years in Prison in Connection with Fentanyl Poisoning of Four Children at A Bronx DaycareRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced today that FELIX HERRERA GARCIA was sentenced to 45 years in prison for trafficking fentanyl out of a daycare in the Bronx, which resulted in the death of one child and the poisoning of three others. Herrera Garcia pled guilty on June 10, 2024, before United States District Judge Jed S. Rakoff, who imposed today’s sentence.
U.S. Attorney Damian Williams said: “Felix Herrera Garcia operated a deadly fentanyl trafficking enterprise out of a Bronx daycare, recklessly putting babies at risk of fentanyl exposure. Tragically, on September 15, 2023, one child was killed and four others were poisoned at the daycare by the defendant’s deadly drugs. This case demonstrates the deadly reach and scope of the fentanyl epidemic, and the profound damage it inflicts on American lives, including the lives of the most vulnerable among us. This Office and our law enforcement partners will work tirelessly to ensure that anyone who harms or risks the lives of children in connection with their deadly narcotics activities will be brought to justice.”
According to the Complaint, the Indictment, and other documents in the public record:
From at least in or about October 2022 through September 2023, HERRERA GARCIA and others conspired to distribute narcotics out of Divino Niño Daycare (the “Daycare”) in the Bronx. There, HERRERA GARCIA and his co-conspirators maintained more than eleven kilograms of fentanyl and heroin in secret compartments, or traps, located underneath the floor tiles in the playroom of the Daycare, where the children played, ate, and slept on a daily basis.
As a consequence of the drug conspiracy perpetrated by HERRERA GARCIA and his co-conspirators, on or about September 15, 2023, four children at the Daycare, all of whom were under three years of age, experienced the effects of poisoning from exposure to fentanyl. Three of the children were hospitalized. The fourth child, 22-month-old boy, died.
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In addition to the prison term, HERRERA GARCIA, 35, of the Bronx, New York, was sentenced to 5 years of supervised release.
Mr. Williams praised the outstanding investigative work of the Drug Enforcement Administration (“DEA”), the New York City Police Department (“NYPD”), the Southern District of New York Digital Forensic Unit, the Complex Analytical and Social Media Enhancement Team at the New York/New Jersey High Intensity Drug Trafficking Area, the Organized Crime Drug Enforcement Task Force (“OCDETF”) New York Strike Force, and the United States Marshals Service (“USMS”). Mr. Williams also thanks the NY/NJ Regional Fugitive Task Force of the USMS, the USMS Office of International Operations, the USMS for the Southern District of New York, the USMS for the Southern District of Texas, the USMS for the Southern District of California, the USMS Mexico Field Office, the USMS Investigative Operations Division, the DEA New York Strike Force, the DEA Regional Office in Allentown, Pennsylvania, the DEA Regional Office in McAllen, Texas, the DEA Regional Office in Mexico City, Mexico, the DEA Regional Office in Hermosillo, Mexico, the DEA Regional Office in Monterrey, Mexico, the DEA Special Operations Division, the NYPD 52nd Precinct’s Detective Squad, the NYPD Bronx Homicide Squad, the NYPD Laboratory, the Office of International Affairs of the Justice Department’s Criminal Division, the U.S. Attorney’s Office for the Southern District of Texas, the U.S. Attorney’s Office for the Southern District of California, U.S. Customs and Border Protection, and Mexican Federal and State authorities.
The OCDETF New York Strike Force provides for the establishment of permanent, multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations to disrupt and dismantle the most significant drug traffickers, money launderers, gangs, and transnational criminal organizations. The specific mission of the New York Strike Force is to target, disrupt, and dismantle drug trafficking and money laundering organizations, reduce the illegal drug supply in the United States, and bring criminals to justice.
This case is being prosecuted by the Office’s Narcotics Unit. Assistant U.S. Attorneys Brandon C. Thompson, Maggie Lynaugh, and Justin Rodriguez, as well as Special Assistant U.S. Attorney Karl P. Miller of the Office of the Bronx County District Attorney’s Homicide Bureau, are in charge of the prosecution.
New Jersey Man Pleads Guilty to Causing the Death of A Seven-Year-Old Boy and A 48-Year-Old Woman in Hudson River Boat CapsizingRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced today that RICHARD CRUZ pled guilty to misconduct and neglect of a ship officer resulting in death, in connection with the deaths of a seven-year-old boy and a 48-year-old woman after the motor vessel Stimulus Money capsized in the Hudson River in July 2022. CRUZ pled guilty before United States District Judge Katherine Polk Failla, who will sentence CRUZ on January 25, 2025, at 3:30 p.m.
U.S. Attorney Damian Williams said: “Richard Cruz admitted today that his misconduct and negligent actions caused the tragic deaths of a young boy and a woman when Cruz’s vessel capsized in the Hudson River. This prosecution should send a message to all captains and operators of commercial vessels that there will be consequences when they fail to follow the federal regulations and safety protocols that exist to keep passengers safe.”
According to the allegations contained in the Complaint, Information, and statements made in court:
On or about July 12, 2022, at approximately 2:40 p.m., the motor vessel Stimulus Money capsized in the Hudson River resulting in the death of two passengers — a seven-year-old boy (“Victim-1”) and a 48-year-old woman (“Victim-2”). At the time of the capsizing, RICHARD CRUZ was the owner and captain of the vessel. CRUZ had purchased the vessel approximately three months before the capsizing. CRUZ conducted boat “tours” for paying customers onboard the vessel on multiple occasions in the months leading up to the capsizing, despite not having the required United States Coast Guard (“USCG”) credentials and certifications to do so.
CRUZ’s negligent actions and omissions caused the capsizing and the deaths of Victim-1 and Victim-2. At the time of the capsizing, among other things: (i) CRUZ operated Stimulus Money with 13 people on board, exceeding the vessel’s maximum allowable capacity; (ii) CRUZ operated Stimulus Money at a high rate of speed even though an advisory had been issued to alert small watercraft of hazardous conditions, including high winds and heavy seas; (iii) CRUZ had not obtained a required USCG certification to operate the vessel with paying customers on board; and (iv) CRUZ operated Stimulus Money without a valid USCG Certificate of Inspection, which is required for a vessel to operate with paying customers on board.
All 13 people on board Stimulus Money were thrown overboard when it capsized in the Hudson River. Shortly after the capsizing, boats from the New York City Police Department’s (“NYPD”) Harbor Unit and the New York City Fire Department’s (“FDNY”) Dive Rescue Team, and ferries operating nearby, arrived at the scene of the capsizing to render emergency assistance. All but two passengers were recovered conscious and in varying medical conditions. They were subsequently transferred to hospitals in Manhattan and survived the capsizing. Approximately 25 minutes after the capsizing, members of the FDNY Dive Rescue Team recovered Victim-1 and Victim-2 from the Hudson River. They were trapped underneath the capsized vessel and found unconscious. Emergency medical personnel subsequently pronounced Victim-1 and Victim-2 deceased. The cause of death was drowning.
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Please report any illegal passenger charters to the USCG at https://www.p3tips.com/878.
CRUZ, 32, of Elizabeth, New Jersey, pled guilty to one count of misconduct and neglect of a ship officer resulting in death, which carries a maximum 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 investigative work of the USCG Investigative Service and the Special Agents and NYPD Detectives assigned to the U.S. Attorney’s Office for the Southern District of New York.
This case is being handled by the Office’s General Crimes Unit. Assistant U.S. Attorney Jeffrey W. Coyle is in charge of the prosecution.
U.S. Army Soldier Sentenced to 14 Years in Prison for Attempting to Assist ISIS to Conduct Deadly Ambush on U.S. TroopsRead the Press Release
Cole Bridges, also known as Cole Gonzales, 24, of Stow, Ohio, was sentenced to 168 months in prison followed by 10 years of supervised release for attempting to provide material support to a designated foreign terrorist organization and attempting to murder U.S. military service members, based on his efforts to assist the Islamic State of Iraq and al-Sham (ISIS) to attack and kill U.S. soldiers in the Middle East.
Bridges pleaded guilty to terrorism charges on June 14, 2023. According to court documents, Bridges joined the U.S. Army in approximately September 2019 and was assigned as a cavalry scout in the Third Infantry Division based in Fort Stewart, Georgia. Before he joined the Army, beginning in at least 2019, Bridges began researching and consuming online propaganda promoting jihadists and their violent ideology, and began to express his support for ISIS and jihad on social media. In or about October 2020, approximately one year after joining the Army, Bridges began communicating with an FBI online covert employee (the OCE), who was posing as an ISIS supporter in contact with ISIS fighters in the Middle East. During these communications, Bridges expressed his frustration with the U.S. military and his desire to aid ISIS. Bridges then provided training and guidance to purported ISIS fighters who were planning attacks, including advice about potential targets in New York City. Bridges also provided the OCE with portions of a U.S. Army training manual and guidance about military combat tactics, with the understanding that the materials would be used by ISIS in future attack planning.
In or about December 2020, Bridges began to supply the OCE with instructions for the purported ISIS fighters on how to attack U.S. forces in the Middle East. Among other things, Bridges diagrammed specific military maneuvers intended to help ISIS fighters maximize the lethality of future attacks on U.S. troops. Bridges also provided advice about the best way to fortify an ISIS encampment to ambush U.S. Special Forces, including by wiring certain buildings with explosives to kill the U.S. troops. Then, in January 2021, Bridges provided the OCE with a video of himself in his U.S. Army body armor standing in front of a flag often used by ISIS fighters and making a gesture symbolic of support for ISIS. Approximately one week later, Bridges sent a second video in which Bridges, using a voice manipulator, narrated a propaganda speech in support of the anticipated ambush by ISIS on U.S. troops.
The FBI's New York Joint Terrorism Task Force investigated the case, with valuable assistance provided by the FBI field offices in Washington, Atlanta, and Cleveland; U.S. Army Counterintelligence, the U.S. Attorney’s Office for the Southern District of Georgia, Air Force Office of Special Investigations, U.S. Army Criminal Investigation Command, and U.S. Army Third Infantry Division.
Assistant U.S. Attorneys Sam Adelsberg and Matthew Hellman for the Southern District of New York prosecuted the case, with assistance from Trial Attorney Michael Dittoe of the National Security Division’s Counterterrorism Section.
U.S. Army Soldier Sentenced to 14 Years in Prison for Attempting to Assist ISIS to Conduct Deadly Ambush on U.S. TroopsRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced today that COLE BRIDGES, a/k/a “Cole Gonzales,” was sentenced to 14 years in prison for attempting to provide material support to a designated foreign terrorist organization, and attempting to murder U.S. military service members, based on his efforts to assist the Islamic State of Iraq and al-Sham (“ISIS”) to attack and kill U.S. soldiers in the Middle East. BRIDGES pled guilty on June 14, 2023, before U.S. District Judge Lewis J. Liman, who imposed today’s sentence.
U.S. Attorney Damian Williams said: “Cole Bridges used his U.S. Army training to pursue a horrifying goal: the brutal murder of his fellow service members in a carefully plotted ambush. Bridges sought to attack the very soldiers he was entrusted to protect and, making this abhorrent conduct even more troubling, was eager to help people he believed were members of a deadly foreign terrorist organization plan this attack. This is a betrayal of the worst order. Today’s sentence makes clear that that this Office—along with our partners in law enforcement and the U.S. military—will work tirelessly to bring to justice those who, like Bridges, seek to harm members of our Armed Forces.”
According to the Complaint, the Indictment, and other documents in the public record, as well as statements made in public court proceedings:
BRIDGES joined the U.S. Army in approximately September 2019, and was assigned as a cavalry scout in the Third Infantry Division based in Fort Stewart, Georgia. Before he joined the Army, beginning in at least 2019, BRIDGES began researching and consuming online propaganda promoting jihadists and their violent ideology, and began to express his support for ISIS and jihad on social media. In or about October 2020, approximately one year after joining the Army, BRIDGES began communicating with a Federal Bureau of Investigation (“FBI”) online covert employee (the “OCE”), who was posing as an ISIS supporter in contact with ISIS fighters in the Middle East. During these communications, BRIDGES expressed his frustration with the U.S. military and his desire to aid ISIS. BRIDGES then provided training and guidance to purported ISIS fighters who were planning attacks, including advice about potential targets in New York City. BRIDGES also provided the OCE with portions of a U.S. Army training manual and guidance about military combat tactics, with the understanding that the materials would be used by ISIS in future attack planning.
In or about December 2020, BRIDGES began to supply the OCE with instructions for the purported ISIS fighters on how to attack U.S. forces in the Middle East. Among other things, BRIDGES diagrammed specific military maneuvers intended to help ISIS fighters maximize the lethality of future attacks on U.S. troops. BRIDGES also provided advice about the best way to fortify an ISIS encampment to ambush U.S. Special Forces, including by wiring certain buildings with explosives to kill the U.S. troops. Then, in January 2021, BRIDGES provided the OCE with a video of himself in his U.S. Army body armor standing in front of a flag often used by ISIS fighters and making a gesture symbolic of support for ISIS. Approximately one week later, BRIDGES sent a second video in which BRIDGES, using a voice manipulator, narrated a propaganda speech in support of the anticipated ambush by ISIS on U.S. troops.
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In addition to the prison term, BRIDGES, 24, of Stow, Ohio, was sentenced to 10 years of supervised release.
Mr. Williams praised the outstanding efforts of the FBI’s New York Joint Terrorism Task Force, which principally consists of agents from the FBI and detectives from the New York City Police Department, and over 50 other federal, state, and local agencies. Mr. Williams also thanked U.S. Army Counterintelligence, the FBI Washington Field Office, the FBI Atlanta Field Office and its Savannah Resident Agency, the FBI Cleveland Field Office, the FBI’s Counterterrorism Division, the U.S. Attorney’s Office for the Southern District of Georgia, the Air Force Office of Special Investigations, U.S. Army Criminal Investigation Command, the U.S. Army Third Infantry Division, 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. Attorneys Sam Adelsberg and Matthew Hellman are in charge of the prosecution, with assistance from Trial Attorney Michael Dittoe of the Counterterrorism Section.
Controller of Family-Owned Businesses Pleads Guilty to Embezzling $3.4 MillionRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that JOHN HICKEY, the former controller and Director of Quality Assurance for a family-owned business in Armonk, New York, pled guilty to one count of wire fraud in connection with his embezzlement of more than $3.4 million from the business.
U.S. Attorney Damian Williams said: “John Hickey embezzled over $3.4 million from a family-owned business, exploiting his position of trust for personal gain. Today’s guilty plea holds Hickey accountable for his illegal conduct and demonstrates our unwavering commitment to pursuing justice for victims of fraud.”
According to the allegations contained in the Information:[1]
HICKEY was a member of the family that owned the group of victim corporations and held minority ownership interest in some of the corporations. The victim corporations manufactured flame retardant fabrics. HICKEY began to work at the victim corporations while he was in college and became the Director of Quality Assurance in or about 2012. HICKEY also served as the controller of some of the victim corporations.
From February 2018 to November 2023, HICKEY embezzled $3,461,292.69 from the victim corporations. He created false invoices that appeared to be from entities with which the vctim corporations did business. He then forged signatures that supposedly approved payment of those invoices and caused the victims' accounting system to print checks payable to him in the amount of the invoices. Once a check was printed, HICKEY changed the payee on the check to match the name on the corresponding false invoice. He used a rubber signature stamp to sign the checks. HICKEY used the proceeds of the above scheme to gamble on sporting events, to attend concerts and sporting events, to improve and repair his home and to go on vacations.
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HICKEY, 34, of Feasterville-Trevose, PA, pleaded guilty to one count of wire fraud, which carries a maximum sentence of twenty years in prison. The maximum potential sentence is prescribed by Congress and is provided here for informational purposes only, as the sentence will be determined by the court.
Mr. Williams praised the outstanding investigative work of the Special Agents of the United States Attorney's Office for the Southern District of New York.
This case is being handled by the Office’s White Plains Division. Assistant United States Attorney James McMahon is in charge of the prosecution.
[1]As the introductory phrase signifies, the entirety of the text of the Information, and the description of the Information set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Bronx Man Convicted of Robberies and Firearms OffenseRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced the conviction in Manhattan federal court of JAMES KELLY for robbing two delis in the Bronx, New York, on October 10, 2021 and January 15, 2023, and brandishing a firearm in connection with the 2023 robbery. The jury convicted KELLY today following a four-day trial before U.S. District Judge Gregory H. Woods.
U.S. Attorney Damian Williams said: “James Kelly used a firearm to intimidate and threaten the lives of working New Yorkers, all to steal money from their delis. Today, a unanimous jury of his peers held Kelly accountable for his crimes. We thank our law enforcement partners for their relentless pursuit of justice for the victims and the public."
According to the allegations in the Indictment and the evidence presented during trial and court proceedings:
On October 10, 2021, KELLY entered a deli in the Bronx with his hands in his pocket, purporting to have a gun. He got close to a deli employee working alone in the store, threatened to shoot him, and demanded cash and marijuana. After the deli employee gave KELLY cash, KELLY ordered the deli employee to get down on the ground and said that if the employee moved, he would “shoot the shit” out of the employee. Fifteen months later, on January 15, 2023, KELLY robbed another deli in the Bronx, pointed a gun at two deli employees, again demanded cash and threatened to shoot them, and again ordered them to get on the ground.
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KELLY, 32, of the Bronx, New York, was convicted of two counts of Hobbs Act robbery, each of which carries a maximum sentence of 20 years in prison; and one count of the use, carrying, and possession of a firearm, which was brandished, which carries a mandatory minimum sentence of seven years in prison and a maximum sentence of life in prison.
The statutory minimum and maximum penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant would be determined by the judge. KELLY is scheduled to be sentenced by Judge Woods on January 14, 2025.
Mr. Williams praised the outstanding investigative work of the New York City Police Department’s Bronx Violent Crimes Squad and the investigators of the Office.
This case is being supervised by the Office’s General Crimes Unit. Assistant U.S. Attorneys Connie L. Dang, Adam Z. Margulies, Georgia V. Kostopoulos, Katherine Cheng, and David R. Felton are in charge of the prosecution, with the assistance of Paralegal Specialist Olivia Sebade.
Two Russian Nationals Charged for Their Participation in an Illicit Procurement Network That Exported to Russia Sensitive U.S.-Sourced Microelectronics with Military Applications in Violation of U.S. Export ControlsRead the Press Release
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 Jonathan Carson, the Special Agent in Charge of the Office of Export Enforcement of the New York Field Office of the Bureau of Industry and Security of the U.S. Department of Commerce, announced today that ZHANNA SOLDATENKOVA and RUSLAN ALMETOV, both Russian nationals, were indicted along with ARTHUR PETROV, a dual Russian and German national, for export control violations, smuggling, wire fraud, and money laundering in connection with their alleged participation in a scheme to procure U.S.-sourced microelectronics subject to U.S. export controls on behalf of a Russia-based supplier of critical electronics components for manufacturers supplying weaponry and other equipment to the Russian military. PETROV, previously charged in a criminal Complaint, was arrested on August 26, 2023, in the Republic of Cyprus at the request of the U.S. and was extradited from the Republic of Cyprus earlier this year. He arrived in the Southern District of New York on August 8, 2024, and was ordered detained. SOLDATENKOVA and ALMETOV are at large. The case is assigned to U.S. District Judge Alvin K. Hellerstein.
The indictment can be read here.
U.S. Attorney Damian Williams said: “Zhanna Soldatenkova and Ruslan Almetov are now charged, alongside previously charged Arthur Petrov, for conspiring to smuggle microelectronics with military applications from U.S. distributors to a Russian company that supplies manufacturers for the Russian military. This Office is committed to exposing the full breadth of such illicit procurement networks and protecting our national security.”
Assistant Director in Charge James E. Dennehy said: “Zhanna Soldatenkova and Ruslan Almetova, along with Arthur Petrov, allegedly conspired to evade export laws as members of an illegal international procurement network to help aid the Russian defense industry. As alleged, by deliberately concealing the true nature of their business, they not only violated the law but ultimately put the national security of our country at risk. The FBI, in concert with our partners, is determined to protect the United States and will hold accountable anyone attempting to harm our nation.”
Special Agent in Charge Jonathan Carson said: “As this action demonstrates, we will work with our domestic and international law enforcement partners to charge alleged violators wherever they may be worldwide. Illegal global procurement networks that prop up the Russian war machine will not be tolerated. That’s why we and our law enforcement partners are working nonstop to ensure that those operating such networks face American justice.”
According to the allegations contained in the Indictment returned in Manhattan federal court:[1]
PETROV is a dual Russian-German national who previously resided in Russia and Cyprus and worked for LLC Electrocom VPK (“Electrocom”), a Russia-based supplier of critical electronics components for manufacturers supplying weaponry and other equipment to the Russian military. SOLDATENKOVA is a Russian national who has resided in Russia and worked for Electrocom. ALMETOV is also a Russian national who has resided in Russia and was the co-founder and served as General Director of Electrocom.
PETROV, SOLDATENKOVA, and ALMETOV operated an illicit procurement network in Russia and elsewhere overseas. More specifically, they fraudulently procured from U.S. distributors large quantities of microelectronics subject to U.S. export controls on behalf of Electrocom. To carry out the scheme, PETROV, SOLDATENKOVA, and ALMETOV used shell companies and other deceptive means to conceal that the electronics components were destined for Russia. The technology that the defendants procured in contravention of export controls had significant military applications and included various types of electronics components of the sort that have been recovered in Russian military hardware on the battlefield in Ukraine, such as Russian guided missiles, drones, and electronic warfare and communications devices.
To perpetrate the scheme, PETROV first acquired the controlled microelectronics from U.S.-based electronics exporters using a Cyprus-based shell company, Astrafteros Technokosmos LTD (“Astrafteros”), which he operated. PETROV procured these sensitive electronics components by falsely representing to the U.S. exporters that Astrafteros was purchasing the items for fire security systems, among other commercial uses, and that the ultimate end-users and destinations of the electronics are companies in Cyprus or other third countries — when in fact the components were destined for Electrocom in Russia, which supplies manufacturers for the Russian military. The microelectronics that PETROV procured as part of the conspiracy included, among other things, microcontrollers and integrated circuits on the Commerce Control List maintained by the Commerce Department and which could not lawfully be exported or reexported to Russia without a license from the Commerce Department. Invoices provided to PETROV by the U.S. distributors expressly noted that these microcontrollers and integrated circuits were subject to U.S. export controls.
To evade these controls, PETROV, SOLDATENKOVA, and ALMETOV worked together to transship the controlled items procured by PETROV using pass-through entities operated by SOLDATENKOVA and ALMETOV in third countries. SOLDATENKOVA and ALMETOV then caused the items to be shipped, sometimes through yet another country, to the ultimate destination: Electrocom in Saint Petersburg, Russia. At all times, PETROV, SOLDATENKOVA, and ALMETOV concealed from the U.S. distributors that they were procuring the controlled electronics components on behalf of Electrocom and that the items were destined for Russia. During the course of the conspiracy, PETROV, SOLDATENKOVA, and ALMETOV procured from U.S. distributors and shipped to Russia more than $225,000 worth of controlled electronics components with military applications.
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A table containing the charges and maximum penalties for PETROV, 35, of Russia and Cyprus, SOLDATENKOVA, 36, of Russia, and ALMETOV, 43, of Russia, is set forth below. The maximum penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by a judge.
Charge
Defendants
Maximum Penalties
Count One: Conspiracy to defraud the United States (18 U.S.C. § 371)PETROV, SOLDATENKOVA, and ALMETOV5 years’ imprisonmentCount Two: Conspiracy to violate the Export Control Reform Act (“ECRA”) (50 U.S.C. §§ 4819(a)(1), 4819(a)(2)(A)-G), and 4819(b); 15 C.F.R. §§ 736.2(b)(1), 746.8(a)(1), and 764.2)PETROV, SOLDATENKOVA, and ALMETOV20 years’ imprisonmentCount Three: Violation of ECRA (50 U.S.C. §§ 4819(a)(1), 4819(a)(2)(A)-G), and 4819(b); 15 C.F.R. §§ 736.2(b)(1), 746.8(a)(1), and 764.2)PETROV and SOLDATENKOVA20 years’ imprisonmentCount Four: Violation of ECRA (50 U.S.C. §§ 4819(a)(1), 4819(a)(2)(A)-G), and 4819(b); 15 C.F.R. §§ 736.2(b)(1), 746.8(a)(1), and 764.2)PETROV and SOLDATENKOVA20 years’ imprisonmentCount Five: Violation of ECRA (50 U.S.C. §§ 4819(a)(1), 4819(a)(2)(A)-G), and 4819(b); 15 C.F.R. §§ 736.2(b)(1), 746.8(a)(1), and 764.2)PETROV, SOLDATENKOVA, and ALMETOV20 years’ imprisonmentCount Six: Conspiracy to smuggle goods from the United States (18 U.S.C. § 371)PETROV, SOLDATENKOVA, and ALMETOV5 years’ imprisonmentCount Seven: Smuggling goods from the United States (18 U.S.C. §§ 554(a) and 2)PETROV and SOLDATENKOVA10 years’ imprisonmentCount Eight: Smuggling goods from the United States (18 U.S.C. §§ 554(a) and 2)PETROV and SOLDATENKOVA10 years’ imprisonmentCount Nine: Smuggling goods from the United States (18 U.S.C. §§ 554(a) and 2)PETROV, SOLDATENKOVA, and ALMETOV10 years’ imprisonmentCount Ten: Conspiracy to commit wire fraud (18 U.S.C. § 1349)PETROV, SOLDATENKOVA, and ALMETOV20 years’ imprisonmentCount Eleven: Conspiracy to commit money laundering (18 U.S.C. §§ 1956(h), 1956(f))PETROV, SOLDATENKOVA, and ALMETOV20 years’ imprisonmentMr. Williams praised the outstanding investigative work of the FBI and its New York Field Office, Counterintelligence Division and the New York Field Office of the Bureau of Industry and Security of the Department of Commerce. Mr. Williams also thanked the FBI’s Legal Attaché offices in Poland, Germany, and Athens, Greece; the Department of Justice’s National Security Division, Counterintelligence and Export Control Section; the Department of Justice’s Office of International Affairs; the Republic of Cyprus Ministry of Justice and Public Order; and the Law Office of the Republic for their assistance. The Republic of Cyprus National Police also provided critical assistance in effecting the defendant’s arrest and detention at the request of the U.S.
This prosecution is coordinated through the Justice Department’s Task Force KleptoCapture and the Justice and Commerce Departments’ Disruptive Technology Strike Force. Task Force KleptoCapture is an interagency law enforcement task force dedicated to enforcing the sweeping sanctions, export restrictions, and economic countermeasures that the U.S. has imposed, along with its allies and partners, in response to Russia’s unprovoked military invasion of Ukraine. The Disruptive Technology Strike Force is an interagency law enforcement strike force co-led by the Departments of Justice and Commerce designed to target illicit actors, protect supply chains, and prevent critical technology from being acquired by authoritarian regimes and hostile nation states.
This case is being handled by the Office’s National Security and International Narcotics Unit. Assistant U.S. Attorney Kevin Sullivan is in charge of the prosecution, with assistance from Trial Attorney Maria Fedor of the Counterintelligence and Export Control Section.
The charges in the 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 Indictment and the description of the Indictment set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Former New York City Hall Official Charged with Witness Tampering and Destruction of EvidenceRead the Press Release
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 Jocelyn E. Strauber, the Commissioner of the New York City Department of Investigation (“DOI”), announced today the unsealing of a Complaint charging former New York City Hall official MOHAMED BAHI with witness tampering and destruction of evidence in connection with a federal investigation of unlawful contributions to a particular 2021 mayoral campaign. BAHI was arrested today and will be presented before United States Magistrate Judge Robert W. Lehrburger in Manhattan federal court.
A link to the complaint is here.
U.S. Attorney Damian Williams said: “As alleged, Mohamed Bahi obstructed a federal criminal investigation by instructing witnesses to lie and then destroying evidence. The charges unsealed today should leave no doubt about the seriousness of any effort to interfere with a federal investigation, particularly when undertaken by a government employee. Our commitment to uncovering the truth and following the facts wherever they may lead is unwavering.”
FBI Assistant Director James E. Dennehy said: “Mohamed Bahi, a former senior New York City Hall official, allegedly interfered with an active investigation by ordering third parties to lie to federal agents and deleting potentially incriminating correspondence from his personal electronic devices. These alleged actions were a deceitful attempt to conceal unlawful activity and create unnecessary obstacles for those working to uncover the truth. The FBI will continue to apprehend all individuals, regardless of their position, for obstruction of federal investigations.”
DOI Commissioner Jocelyn E. Strauber said: “As charged, this former City Hall official advised witnesses to lie and destroyed evidence in connection with the investigation of straw contributions to the 2021 Mayoral campaign. These are serious offenses, and DOI thanks our partners in the U.S. Attorney’s Office for the Southern District of New York and the FBI for their commitment to maintaining integrity in investigations.”
As alleged in the Complaint unsealed today:[1]
From approximately 2022 through October 2024, BAHI has worked in the New York City mayoral administration of a certain public official (“Official-1”). Specifically, BAHI served as a Senior Liaison in the Community Affairs Unit of that mayoral administration.
In or about December 2020, BAHI was involved in organizing a fundraiser for Official-1’s campaign to be New York City Mayor in connection with an election to be held in 2021 (the “2021 Official-1 Campaign”). The fundraiser was held at the Brooklyn offices of a construction company (the “Construction Company”). At this event, which was attended by BAHI and Official-1, among others, four employees of the Construction Company (the “Donors”) made contributions in their own names to the 2021 Official-1 Campaign, but those contributions were in fact funded by the Construction Company’s chief executive officer (the “Businessman”). Such contributions—that is, contributions made in the name of one donor but in fact funded by a different person—are commonly referred to as straw contributions. The knowing solicitation and acceptance of straw contributions can violate federal law when, for example, a political campaign makes false statements about straw contributions to a public entity to fraudulently obtain public matching funds based on the contributions, or when the straw contributions are used to smuggle foreign money into a campaign.
Since in or about 2021, the FBI and DOI have been investigating, among other things, the receipt of straw contributions by the 2021 Official-1 Campaign (the “Federal Investigation”). In or about 2024, BAHI took steps to obstruct the Federal Investigation by tampering with multiple witnesses and destroying evidence. In particular:
- On or about June 13, 2024, in connection with the Federal Investigation, FBI agents executed a court-authorized search warrant at the Businessman’s home, and also served the Businessman and the Donors with grand jury subpoenas. After being notified by the Businessman that the FBI had executed a search warrant at the Businessman’s home that morning, BAHI met privately with the Businessman. BAHI told the Businessman that he had just spoken with Official-1and advised the Businessman to lie to federal investigators. BAHI then met with the Businessman and the Donors and instructed them to lie to the FBI.
- On or about June 14, 2024, after having met with Official-1, BAHI told the Businessman that Official-1 believed that the Businessman would not cooperate with law enforcement.
- On or about July 24, 2024, in connection with the Federal Investigation, FBI agents executed a court-authorized search warrant at BAHI’s home and seized BAHI’s cellphone. In an effort to obstruct the Federal Investigation, upon the FBI’s arrival at BAHI’s home, he deleted from his cellphone the encrypted messaging application Signal, which BAHI had previously used to communicate with Official‑1.
If you believe you have information related to bribery, fraud, or any other illegal conduct by BAHI or any other New York City employees, please contact DOI at [email protected] or (212) 825-2828. If you were involved in such conduct, please consider self-disclosing through the SDNY Whistleblower Pilot Program at [email protected].
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BAHI, 40, of Staten Island, New York, is charged with one count of witness tampering and one count of destruction of records, each of which punishable by up to 20 years’ in prison.
The statutory maximum penalties 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 FBI and DOI.
The prosecution of this case is being handled by the Office’s Public Corruption Unit. Assistant U.S. Attorneys Hagan Scotten, Celia V. Cohen, Andrew Rohrbach, and Derek Wikstrom 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.
Former High-Ranking FDNY Official Pleads Guilty to Bribery ConspiracyRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that BRIAN CORDASCO pled guilty today to conspiring to solicit and receive bribes in his role as a Chief of the New York City Fire Department (“FDNY”) Bureau of Fire Prevention (“BFP”). CORDASCO pled guilty before United States District Judge Lewis J. Liman, and will be sentenced by Judge Liman on February 19, 2025 at 10:30 am.
U.S. Attorney Damian Williams said: “Brian Cordasco abused the public’s trust repeatedly by selling access to the Bureau of Fire Prevention’s services in a pay-to-play bribery scheme. Today’s guilty plea should send a message that SDNY is committed to holding our public officials accountable when they resort to corruption.”
According to the Indictment, plea agreement, and statements made in court:
From 2021 to 2023, CORDASCO repeatedly abused his position as a Chief of the BFP by participating in a scheme to solicit and receive $190,000 in total bribe payments from a former FDNY firefighter named Henry Santiago, Jr. In exchange for those bribe payments, CORDASCO used his authority within the BFP to improperly “expedite” BFP inspections and plan reviews for Santiago’s customers. CORDASCO personally profited $57,000 as part of this scheme. To carry out this conspiracy, CORDASCO lied to his BFP subordinates to justify otherwise improper expediting requests. CORDASCO also lied to law enforcement when interviewed about his involvement in the scheme.
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If you believe you have information related to bribery, fraud, or any other illegal conduct by FDNY or BFP employees, please contact [email protected] or (212) 825-2402. If you were involved in such conduct, please consider self-disclosing through the SDNY Whistleblower Pilot Program at [email protected].
CORDASCO, 49, of Staten Island, New York, pled guilty to one count of conspiracy to solicit and receive a bribe, which carries a maximum sentence of 5 years in prison. Under the terms of his plea agreement, CORDASCO agreed to forfeit $57,000.
The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Williams praised the outstanding work of the Federal Bureau of Investigation and the New York City Department of Investigation.
The prosecution of this case is being handled by the Office’s Public Corruption Unit. Assistant U.S. Attorneys Jessica Greenwood, Matthew King, and Daniel H. Wolf are in charge of the prosecution.
U.S. Attorney Announces Voluntary Forfeiture and Pending Repatriation of 16th Century Hebrew Religious TextRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that, on October 4, 2024, U.S. District Judge Analisa Torres confirmed the voluntary forfeiture to the United States of the Chamisa Humshe Torrah (Five Books of Moses), Venice, Giovanni di Gara, 1588, and Haftarot, 1589, Miniature, 162+60 Leaves (the “Di Gara Text”). The United States anticipates repatriating the Di Gara Text to the Jewish Theological Seminary of the University of Jewish Studies in Budapest, Hungary (the “Budapest Rabbinical Seminary”), in the coming weeks.
U.S. Attorney Damian Williams said: “With this forfeiture, a small, but meaningful, piece of the history of the Jewish faith will be returned to its rightful owner, the Budapest Rabbinical Seminary. The Di Gara Text went missing for nearly 80 years after it was looted from the Budapest Rabbinical Seminary during the city’s occupation by Nazi forces in 1944. We may never know how it ended up in the Southern District of New York, but it is now returning home. My Office retains its firm commitment to protecting priceless cultural property and, where it has been illegally taken, returning it to its rightful peoples.”
According to the stipulated facts in the voluntary forfeiture order, statements made in court filings, and relevant online publications:
Giovanni di Gara was a Venetian printer of Hebrew books in the 16th century. The Di Gara text is comprised of two works from the Jewish faith: (1) the Chamisa Humshe Torrah (Five Books of Moses), or the Jewish Torrah in book form, and (2) the Haftarot, a series of selections from the Hebrew Bible. An image of the leatherbound Di Gara text is included below.
Lelio Della Torre was an Italian Jewish scholar and rabbi who lived from approximately 1805 to 1871. At some point during his life, the Di Gara Text came into Della Torre’s personal collection (the “Della Torre Collection” or the “Collection”). Works in the Della Torre Collection were stamped to indicate that they belonged to the Collection, as set forth below.
In or about 1877, after Della Torre’s death, the Collection was sold to the Budapest Rabbinical Seminary. The Collection catalogue, which was published in or about 1872, is in the custody of the Budapest Rabbinical Seminary. The Di Gara Text is listed in the catalogue of the Della Torre Collection as “(Homasc) Pentateuc. sine accentis et punctis vocal., Venetiis, 5348, vol. 1, in-3.” The Jewish year 5348 equates to 1588 and the place of publication (Venetiis) is the Latin translation of Venice, Italy.
In 1944, in the midst of World War II and the Jewish Holocaust, Nazi forces invaded Budapest and seized and occupied the Budapest Rabbinical Seminary, looting its holdings. The Di Gara Text is believed to have disappeared during this period. At no point did the Budapest Rabbinical Seminary deaccession—that is, formally remove from its collection—the Di Gara Text.
In March 2023, Hungarian officials notified the Department of Homeland Security that a volume that appeared to be the Di Gara Text was for sale for $19,000 on www.abebooks.com. AbeBooks is an online marketplace used by independent vendors to sell, among other things, rare books. The vendor (“Vendor-1”), who was based in Manhattan, specialized in selling Judaica in various languages. The description of the volume on Vendor-1’s AbeBooks page was consistent with the description of the Di Gara Text in the catalogue of the Della Torre Collection. Furthermore, an image of a stamp in the volume was consistent with the stamp used by Della Torre, as set forth below.
In late March 2023, Special Agents with Homeland Security Investigations (“HSI”) met with Vendor-1 in Manhattan. Vendor-1 admitted that he possessed the Di Gara Text, having acquired it during the 1980s without knowledge of its provenance, and stated that he was willing to give the book to HSI if served with valid legal process. In early April 2023, Special Agents with HSI served Vendor-1 with a seizure warrant issued by United States Magistrate Judge Barbara Moses and took custody of the Di Gara Text. On October 4, 2024, Judge Torres issued an order confirming Vendor-1’s voluntary forfeiture of the Di Gara Text.
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Mr. Williams praised the outstanding investigative work of Special Agents from HSI’s Cultural Property, Art, and Antiquities Squad. Mr. Williams also thanked the Hungarian Inspectorate of Cultural Goods for notifying the Government of the Di Gara Text’s presence in the Southern District of New York and providing helpful information to effectuate its seizure and forfeiture. Finally, Mr. Williams thanked Vendor-1 for his cooperation in this matter.
This case is being handled by the Office’s Illicit Finance and Money Laundering Unit. Assistant U.S. Attorney Benjamin A. Gianforti is in charge of this matter.
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Atlanta Businessman Convicted of Defrauding Former NBA Players Dwight Howard and Chandler ParsonsRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced today the conviction of CALVIN DARDEN, JR. for his role in defrauding former National Basketball Association (“NBA”) players Dwight Howard and Chandler Parsons out of $8 million. The defendant was found guilty following an 11-day jury trial before U.S. District Judge Vernon S. Broderick.
U.S. Attorney Damian Williams said: “Calvin Darden, Jr. exploited the trust of former NBA players Dwight Howard and Chandler Parsons, using elaborate lies and deception to line his own pockets with millions. This conviction serves as a stark reminder that financial deceit will not be tolerated. This Office remains committed to pursuing those who exploit others, and we will work tirelessly to ensure that justice is served.”
According to court documents and evidence presented at trial:
In the fraud against Howard, DARDEN, JR. deceived Howard into sending him $7 million, purportedly for the purpose of buying the Atlanta Dream (the “Dream”), a team in the Women’s National Basketball Association. DARDEN, JR. worked with Charles Briscoe, Howard’s agent, to perpetrate the fraud. DARDEN, JR. sent a “Vision Plan” to Howard about the purported purchase of the Dream. The Vision Plan falsely claimed that a number of celebrities and companies—including Tyler Perry, Issa Rae, Naomi Osaka, Aflac, and Starbucks—had agreed to be advisors to the Dream or to sponsor the Dream after Howard purchased it. In truth and in fact, those individuals and companies had never agreed to be advisors or corporate sponsors to the Dream and many had never even heard of DARDEN, JR. or the plan to purchase the Dream.
DARDEN, JR.’s father (“Relative-1”) is a prominent businessman. DARDEN, JR. repeatedly impersonated Relative-1 in an attempt to add credibility to his fraud scheme.
DARDEN, JR. directed Howard to send the $7 million to a shell company he controlled, in order to effectuate the purported purchase of the Dream. DARDEN, JR. then laundered the money through a number of different bank accounts he controlled. DARDEN, JR. did not spend any money on the purchase of the Dream. Instead, he spent the money on a $3.7 million mansion, a Rolls-Royce, a Lamborghini, a Porsche, Basquiat paintings, and other luxury goods for himself.
Howard learned that he did not in fact own the Dream only when ESPN reported that the Dream had in fact been sold to someone else.
In the fraud against Parsons, DARDEN, JR. deceived Parsons into sending him $1 million, purportedly for the purpose of loaning the money to James Wiseman, a prospect in the 2020 NBA draft. DARDEN, JR. and Briscoe falsely claimed to know Wiseman, and forged a document stating that Wiseman had agreed that Briscoe would be his agent in order to convince Parsons to send the money. In truth and in fact, DARDEN, JR. and Briscoe did not know Wiseman and did not send any of the money to Wiseman. Instead, DARDEN, JR. spent his cut of the fraud proceeds on watches, a Mercedes, and other personal expenses.
DARDEN, JR. was previously convicted of fraud in New York state in 2005. He was also convicted of fraud in the Southern District of New York in 2015. In the 2015 case, DARDEN, JR. committed frauds involving a purported purchase of Maxim magazine and a purported NBA exhibition game in Taiwan. In that prior fraud, DARDEN, JR. also impersonated Relative-1 in an attempt to add credibility to his fraud scheme.
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DARDEN, JR., 50, of Atlanta, Georgia, was convicted of one count of conspiracy to commit wire fraud and bank fraud, which carries a maximum sentence of 30 years; one count of wire fraud, which carries a maximum sentence of 20 years; one count of bank fraud, which carries a maximum sentence of 30 years; one count of conspiracy to commit money laundering which carries a maximum sentence of 20 years; and one count of money laundering, which carries a maximum sentence of 20 years.
The statutory maximum sentence is prescribed by Congress and is provided here for informational purposes only, as the sentencing of the defendants will be determined by the judge. DARDEN, JR. is scheduled to be sentenced by Judge Broderick on January 27, 2024, at 11:00 a.m.
Mr. Williams praised the outstanding work of the FBI.
The case is being prosecuted by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Kevin Mead, Brandon C. Thompson, and William C. Kinder are in charge of the prosecution.
Leader of Yoga to the People Pleads Guilty to Tax EvasionRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that GREGORY GUMUCIO pled guilty today to a conspiracy to commit tax evasion from 2012 through 2020. GUMUCIO was the longtime leader of a prominent nationwide yoga business, Yoga to the People (“YTTP”), from which he received more than $3.5 million in income between 2012 and 2020, yet he did not file individual (or business) tax returns or pay any income taxes for at least eight consecutive years. GUMUCIO pled guilty before U.S. District Judge John P. Cronan, to whom his case is assigned.
U.S. Attorney Damian Williams said: “Greg Gumucio built a thriving yoga business yet chose to evade his tax obligations for nearly a decade. This Office is committed to holding individuals accountable who fail to pay their fair share.”
According to the allegations contained in the Superseding Information, court filings, and statements made during court proceedings:
In or around 2006, GUMUCIO founded YTTP in New York, New York. YTTP was originally donation-based: YTTP requested, but did not require, payment from its yoga students. YTTP started with one yoga studio on the Lower East Side of Manhattan, and it became extremely popular. Over the ensuing years, YTTP opened at least approximately 20 yoga studios or affiliated entities throughout New York City and in various other places, including California, Colorado, Arizona, Florida, and Washington State. YTTP also had a teacher training program, which earned substantial income from aspiring yoga teachers. YTTP operated from at least approximately 2006 until 2020. From 2010 to 2020, YTTP and its affiliates generated gross receipts of more than $20 million. Despite those substantial revenues, YTTP never filed a corporate tax return with the Internal Revenue Service (“IRS”).
GUMUCIO was YTTP’s founder, principal owner, and functional chief executive officer, as he directed and made decisions for the YTTP enterprise. From approximately 2012 through 2020, GUMUCIO received more than $3.5 million in income and owed taxes to the IRS exceeding $1 million, but never filed a personal tax return with the IRS or paid any income taxes. During the charged period, GUMUCIO repeatedly represented his annual income to be six figures to third parties not associated with the Government (e.g., a bank, a car financing company, and a real estate entity). In one such instance, GUMUCIO submitted a fabricated tax return to a third party, which a co-defendant prepared for GUMUCIO at GUMUCIO’s request. During the charged period, GUMUCIO enjoyed an extravagant lifestyle, which included frequent foreign travel; expensive hotels, meals, and clothing; NFL season tickets; and country club payments.
GUMUCIO and his co-conspirators used various methods to evade taxes, including, among others:
- Accepting yoga students’ payments in cash (e.g., which was collected in tissue boxes) and paying yoga teachers in cash and “off the books”;
- Generally forbidding YTTP teachers from counting incoming cash that yoga students paid and requiring yoga studio managers to transport cash proceeds to GUMUCIO’s apartment on St. Marks Place in Manhattan, where those proceeds were “stacked” and counted during so-called “stacking parties”;
- Failing to maintain a corporate headquarters or keep corporate books and records;
- Using nominees to disguise GUMUCIO and his co-conspirators’ connection to various entities which, in fact, were part of the YTTP enterprise and from which GUMUCIO and his co-conspirators received income;
- Using YTTP business accounts to pay GUMUCIO’s (and his co-conspirators’) personal expenses; and
- Maximizing unreported income, as GUMUCIO manipulated subordinates into providing free labor (e.g., teaching unpaid classes, stacking cash, cleaning yoga studios, depositing cash into bank accounts, etc.).
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GUMUCIO, 63, of Colorado, pled guilty to one count of conspiracy to defraud the IRS, which carries a maximum penalty of five years in prison. Under the terms of his plea agreement, GUMUCIO has agreed to pay restitution to the IRS of at least $2,560,300.93.
The statutory maximum sentence is prescribed by Congress and is provided here for informational purposes only, as GUMUCIO’s sentence will be determined by the judge.
GUMUCIO’s two co-defendants, Michael Anderson and Haven Soliman, are currently scheduled to proceed to trial on January 13, 2025, before Judge Cronan.
Mr. Williams praised the outstanding efforts of the IRS Criminal Investigation’s New York and Dallas Field Offices; the U.S. Department of Labor, Office of Inspector General’s New York Regional Office; and Special Agents of the U.S. Attorney’s Office for the Southern District of New York.
This matter is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Michael D. Neff and Rushmi Bhaskaran are in charge of the prosecution.
Founder of Cryptocurrency Ponzi Scheme IcomTech Sentenced to 121 Months in PrisonRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that on October 4, 2024, U.S. District Judge Jennifer L. Rochon imposed a sentence of 121 months in prison on DAVID CARMONA, the founder of the cryptocurrency Ponzi scheme IcomTech.
U.S. Attorney Damian Williams said: “David Carmona masterminded the IcomTech cryptocurrency Ponzi scheme, which preyed upon working-class people by promising them complete financial freedom in exchange for parting with their hard-earned money. Carmona claimed that his victims’ money would be invested in cryptocurrency trading and mining, and that profits from those activities would result in victims doubling their money within six months. In reality, IcomTech was doing no such thing. It was all a lie. And when the scheme came crashing down, Carmona’s victims were left with nothing. Carmona’s days of scamming honest people are at an end, and he now faces substantial time in prison.”
According to the allegations in the Indictment, public court filings, and statements made in public court proceedings:
CARMONA started IcomTech in approximately 2018 with other co-conspirators. IcomTech was a purported cryptocurrency mining and trading company that promised to earn its victim-investors (“Victims”) profits in exchange for their purchase of purported cryptocurrency-related investment products. CARMONA and the other promoters of IcomTech falsely promised their respective Victims, among other things, that profits from the companies’ cryptocurrency trading and mining would result in guaranteed daily returns on Victims’ investments and doubling their money within six months. In reality, IcomTech did not engage in cryptocurrency trading or mining for its Investors, and CARMONA and Icomtech’s other promoters used Victim funds to pay other Victims, to further promote the schemes, and to enrich themselves.
Icomtech promoters, including CARMONA, traveled throughout the United States and internationally where they hosted lavish expos and small community presentations aimed at luring Victims to invest in the schemes, including in the Southern District of New York. During larger-scale events, IcomTech promoters presented on purported investment products and the compensation plan, encouraged Victims to invest as a means of achieving financial freedom, and boasted about the amount of money they were earning. IcomTech promoters often showed up at larger-scale events in expensive cars and wearing luxury clothing as a way of exhibiting their purportedly legitimate success from IcomTech. The atmosphere of these events was festive and designed to generate excitement about the schemes.
Victims invested in IcomTech by purchasing investment products from promoters using cash, checks, wire transfers, and actual cryptocurrency. Following a Victim’s investment, a Victim would be provided with access to an online portal where the Victim could monitor the purported returns. While Victims saw “profits” accumulate on IcomTech’s legitimate-looking online portal, most Victims were unable to withdraw any of these so-called profits and ultimately lost their entire investments. By contrast, IcomTech’s promoters, including CARMONA, siphoned off, in some cases, hundreds of thousands of dollars in Victim funds, which they withdrew as cash, spent on IcomTech promotional expenses, and used for personal expenditures such as luxury goods and real estate.
At least as early as August 2018, Victims who attempted to withdraw money from their online portal accounts had difficulty doing so, and when they complained to promoters, they were met with excuses, delays, and hidden fees, if they were able to make any withdrawals at all. Despite these complaints, IcomTech promoters, including CARMONA, continued to promote IcomTech and accept Victims’ investments. As complaints mounted, IcomTech began offering a proprietary crypto-token for sale as a means of injecting liquidity into IcomTech. Promoters of the schemes claimed that these tokens, known as “Icoms,” would eventually be worth a significant amount of money when they were accepted by companies for payment for goods and services. This was false. In reality, “Icoms” were essentially worthless and resulted in further financial loss to Victims. By in or about the end of 2019, IcomTech stopped making payments to Victims and IcomTech collapsed.
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In addition to the prison term, CARMONA, 41, of Queens, New York, was sentenced to 3 years of supervised release.
Mr. Williams praised the outstanding investigative work of Special Agents from Homeland Security Investigations’ El Dorado Task Force. Mr. Williams also thanked the Securities and Exchange Commission and the Commodity Futures Trading Commission for their assistance.
This case is being handled by the Office’s Illicit Finance and Money Laundering Unit. Assistant U.S. Attorneys Benjamin A. Gianforti, Michael D. Maimin, T. Josiah Pertz, and Cecilia Vogel are in charge of the prosecution.
U.S. Attorney Announces Criminal Charges in Multi-Year Fraud Scheme in the Market for Carbon CreditsRead the Press Release
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 charges against KENNETH NEWCOMBE and TRIDIP GOSWAMI in connection with a scheme to commit fraud in the carbon markets, which resulted in their company, CQC Impact Investors LLC (“CQC”), fraudulently obtaining carbon credits worth tens of millions of dollars and fraudulently securing an investment of over $100 million.
Also announced today was the decision not to bring criminal charges against CQC, despite the alleged conduct of NEWCOMBE and GOSWAMI, in light of CQC’s voluntary and timely self-disclosure of misconduct, full and proactive cooperation, timely and appropriate remediation, and agreement to cancel or void certain VCUs.
Also unsealed today is the guilty plea of Jason Steele in connection with his participation in the conduct. Steele pled guilty pursuant to an Information before U.S. District Judge Margaret M. Garnett. Steele is cooperating with the Government.
U.S. Attorney Damian Williams said: “As alleged, Kenneth Newcombe and Tridip Goswami, among others, engaged in a multi-year scheme to fraudulently obtain carbon credits by using manipulated and misleading data. They then sold those credits to unsuspecting buyers in the multi-billion-dollar global market for carbon credits. The alleged actions of the defendants and their co-conspirators risked undermining the integrity of that market, which is an important part of the fight against climate change. Protecting the sanctity and integrity of the financial markets continues to be a cornerstone initiative for this Office, and we will continue to be vigilant in rooting out fraud in the market for carbon credits.”
According to the allegations contained in the Indictment:
The market for carbon credits emerged from an effort to reduce greenhouse gas emissions. While most carbon credits are created through, and trade in compliance markets, there is also a voluntary carbon market. Voluntary markets revolve around companies and entities that voluntarily set goals to reduce or offset their carbon emissions, often to align with goals from employees or shareholders. In voluntary markets, the credits are issued by non-governmental organizations, using standards for measuring emission reductions that they develop based on input from market participants, rather than on mandates from governments. The non-governmental organizations issue voluntary carbon credits to project developers that run projects that reduce emissions or remove greenhouse gases from the atmosphere.
CQC was a for-profit company that ran projects to generate carbon credits—including a type of credit known as a voluntary carbon unit (“VCU”)—by reducing emissions of greenhouse gases. CQC profited by selling VCUs it obtained, often to companies seeking to offset the impact of greenhouse gases they emit in the course of operating their businesses.
One type of project that CQC ran to obtain VCUs involved installing cookstoves in rural Africa and Southeast Asia, among other places (collectively, the “Cookstove Projects”). The cookstoves, if installed and used properly, were more efficient than the preexisting cooking methods many people in those regions used. To obtain VCUs from its Cookstove Projects, CQC collected data through surveys about, among other things, how much fuel people saved by using CQC’s cookstoves, as opposed to the preexisting cooking methods, and the number of CQC’s stoves that were installed and operational. That data went into a formula that an issuer of VCUs (“Issuer-1”) used to calculate the emission reductions CQC had achieved and to determine how many VCUs to issue to CQC.
From at least in or about 2021, through 2023, NEWCOMBE, the CEO of CQC, and GOSWAMI, the Head of CQC’s Carbon & Sustainability Accounting Team (“CSAT”), along with others at CQC, including Jason Steele, the company’s Chief Operating Officer, submitted false and misleading data to Issuer-1, tricking Issuer-1 into giving CQC VCUs for emission reductions that, according to Issuer-1’s methodology for calculating such reductions, had not in fact been achieved.
Members of the conspiracy manipulated data to make it appear as if certain of the Cookstove Projects were far more successful in reducing carbon emissions than was actually the case. For example, in or about August 2021, CQC received survey data for two projects in Malawi and two in Zambia. GOSWAMI reported to NEWCOMBE and Steele that the survey data reflected emission reductions that were only approximately half of what CQC had anticipated. NEWCOMBE responded by writing that “[t]his is a disaster for us.” NEWCOMBE, GOSWAMI, and Steele exchanged emails about possible solutions, and GOSWAMI ultimately informed them that the “[o]nly option left” was “to ‘revise’ the survey results.” Ultimately, NEWCOMBE, GOSWAMI, and Steele agreed to manipulate the survey data for the Malawi and Zambia projects and enlist a person from outside CQC to fill out fraudulent survey forms to reflect the manipulated numbers. CQC sent the manipulated survey data to Issuer-1 when claiming VCUs for the Malawi and Zambia Projects.
NEWCOMBE, GOSWAMI, and Steele also fraudulently obtained VCUs from Issuer-1 by providing false and misleading information about the number of operational stoves in CQC’s projects. Issuer-1’s methodology for calculating emission reductions was designed to ensure that project developers, such as CQC, would receive VCUs only for stoves that were operational and in use.
Beginning in or around 2020, NEWCOMBE set a new direction for CQC and decided to rapidly and aggressively increase the size of CQC’s Cookstove Projects. CQC’s rapid growth caused significant problems for the quality of its Cookstove Projects. To meet the targets set by NEWCOMBE, CQC had to rely on partners that did poor work installing stoves; installed stoves in locations that were outside of a project’s scope (e.g., installing stoves in a suburban area, instead of a rural area, because it was easier to meet targets in more populated areas); and sometime claimed to install stoves that they never installed. These logistical issues posed a meaningful problem for the number of VCUs that the company’s projects might generate—if stoves were not installed properly, or at all, it was likely that surveys would show low levels of stoves in operation, which could reduce the number of stoves for which CQC could claim VCUs.
Rather than writing off and not claiming credits for stoves that were missing, broken, or not installed in correct locations, NEWCOMBE, GOSWAMI, and Steele conspired to conceal from Issuer-1 the true extent of problems with CQC’s Cookstove Projects. One way in which the members of the conspiracy concealed these issues and manipulated survey data about the number of stoves in use was by instituting a practice of having CQC employees rebuild or fix stoves in samples that were missing or broken, then reporting those stoves as operational.
Through this fraud scheme, CQC received millions more VCUs than it otherwise would have, which were worth tens of millions of dollars at then-prevailing prices for VCUs. CQC sold VCUs it had fraudulently obtained to unsuspecting purchasers, who thought they were purchasing VCUs that reflected emission reductions calculated in accordance with Issuer-1’s methodology.
Relying on data about those fraudulently obtained VCUs, NEWCOMBE and others at CQC also deceived an investor (“Investor-1”) into agreeing to invest up to $250 million in CQC. The agreement included Investor-1 purchasing some of NEWCOMBE’s shares in CQC for more than $16 million.
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NEWCOMBE, 77, of Santa Barbara, California, and GOSWAMI, who resides in India, are charged with wire fraud conspiracy, which carries a maximum sentence of 20 years in prison; wire fraud, which carries a maximum sentence of 20 years in prison; commodities fraud conspiracy, which carries a maximum sentence of five years in prison; and commodities fraud, which carries a maximum sentence of 10 years in prison. NEWCOMBE is also charged with securities fraud conspiracy, which carries a maximum sentence of five years in prison, and securities fraud, which carries a maximum sentence of 20 years in prison.
The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by a judge.
Steele, 47, of Arlington, Virginia, pled guilty earlier today to a three-count Information, which charged him with wire fraud conspiracy, commodities fraud conspiracy, and securities fraud conspiracy for his participation in the fraud scheme. A sentencing date has not yet been scheduled.
The Office of the United States Attorney for the Southern District of New York has declined prosecution of CQC in connection with the scheme to fraudulently inflate the number of VCUs issued to CQC projects. This decision reflects a careful weighing of factors set forth in the United States Attorneys’ Offices Voluntary Self-Disclosure Policy, https://www.justice.gov/usao-sdny/press-release/file/1569411/dl, and the Principles of Federal Prosecution of Business Organizations, Justice Manual (“J.M.”) § 9-28.300. Those factors include, among others: the voluntary and timely self-disclosure of the misconduct by CQC—specifically, CQC truthfully and completely disclosed all criminal conduct in which officers, employees, and agents of CQC had been engaged promptly after becoming aware of it, which misconduct had not previously been made public and was not already known to the Office or to any component of the Department of Justice; CQC’s full and proactive cooperation in this matter (including its provision of all known relevant facts about the misconduct and information about all of the individuals involved in the misconduct) and agreement to continue to cooperate with the Office’s ongoing investigation and any prosecution that might result in the future from the investigation; CQC’s timely and appropriate remediation, including terminating employees involved in the misconduct and instituting appropriate compliance measures to deter and detect similar misconduct in the future; and CQC’s agreement to cancel or void a number of VCUs equal to the number of VCUs that CQC improperly obtained through the fraudulent scheme.
Mr. Williams praised the outstanding work of the FBI. Mr. Williams further thanked the Commodity Futures Trading Commission and the Securities and Exchange Commission, each of which today filed parallel civil actions.
The case is being prosecuted by the Office’s Securities and Commodities Fraud Task Force and Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Thomas Burnett, Nicholas W. Chiuchiolo, and Kevin Mead are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
A link to the declination letter is here.
Martin Handler Sentenced to 58 Months for Fraud on Federal Head Start Program and Tax EvasionRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that MARTIN HANDLER was sentenced today to 58 months in prison for defrauding the federal Head Start program, misappropriating over $1 million from his federally-funded childcare company, and tax evasion. HANDLER pled guilty before U.S. District Judge Jennifer H. Rearden on March 15, 2024. Judge Rearden imposed today’s sentence.
U.S. Attorney Damian Williams said: “Martin Handler and his co-conspirators defrauded a vital federal childcare program that aims to serve one of society’s most vulnerable populations. By secretly exploiting a non-profit entity for his own financial gain, Handler exploited the system and undermined the public’s trust in the Head Start program. My Office is committed to pursuing justice against those who place greed above their responsibility to be stewards of federal funds, and I commend our law enforcement partners and the dedicated team of career prosecutors for their outstanding work.”
According to the Indictment, public court filings, and statements made in court proceedings:
Handler participated in two related schemes involving the federal Head Start program and a third scheme to commit tax evasion.
First, between 2017 and August 2021, Handler secretly “owned” and exercised control over a non-profit entity, Project Social Care Head Start Inc. (“PSCHS”), that until recently operated in the New York City area. The U.S. Department of Health and Human Services (“HHS”), which administers the Head Start program, annually granted to PSCHS millions of dollars that were to be used exclusively on the Head Start program and from which earning a profit is prohibited by law. Through this control over PSCHS, Handler conspired to submit multiple fictitious documents to HHS that fraudulently asserted PSCHS had an independent board and had in place controls to guard against fraud, waste, and abuse. In truth, PSCHS had neither an independent board nor sufficient controls in place, and Handler used his control over PSCHS to impermissibly direct PSCHS’s Head Start funding to his own for-profit companies through rampant undisclosed self-dealing. Indeed, through Handler’s “ownership,” he was able to secretly “sell” control over the proceeds of PSCHS’s federal funding streams for $4.7 million to a co-conspirator.
Second, between April 2019 and January 2023, as majority owner of New York City Early Learning Co. (“NYCELC”), a for-profit entity that also received Head Start grants, Handler misapplied and misappropriated NYCELC’s corporate treasury funds to, among other things, repay personal loans and finance the leasing of luxury vehicles for the benefit of two members of NYCELC’s statutorily-required Head Start board. Under the Head Start Act, members of that board owed a fiduciary duty to the Head Start program and were prohibited from having a financial conflict of interest with NYCELC. Handler corrupted NYCLEC’s Head Start program through his actions.
Third, in 2021 and 2022, Handler falsely reported to the Internal Revenue Service (“IRS”) $2,000,000 in charitable contributions, thereby evading taxes of at least $740,000 for tax year 2021.
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In addition to today’s prison sentence, HANDLER, 50, of Brooklyn, New York, was sentenced to three years of supervised release, ordered to pay a fine of $200,000, to forfeit $1,156,068.10, and to pay restitution of $1,156,068.10 to HHS, and to pay restitution of $740,000 to the IRS.
Mr. Williams praised the outstanding work of the Federal Bureau of Investigation, IRS-Criminal Investigation, and HHS, Office of the Inspector General. Mr. Williams also thanked U.S. Department of Agriculture, Office of the Inspector General, and the New York City Department of Investigation for their assistance with this investigation.
The prosecution of this case is being handled by the Office’s Public Corruption Unit. Assistant U.S. Attorneys Daniel H. Wolf, Catherine Ghosh, Jacob R. Fiddelman, and Stephanie Simon are in charge of the prosecution, with the assistance of Paralegal Specialist Jayda Foote.
Former Corrections Officer Charged with Conspiring to Smuggle Narcotics into Rikers IslandRead the Press Release
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”), 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 a Complaint charging GHISLAINE BARRIENTOS with conspiracy to commit honest services fraud, conspiracy to distribute controlled substances, and false statements as part of a scheme to smuggle narcotics into Rikers Island. BARRIENTOS was arrested today and will be presented before Chief U.S. Magistrate Judge Sarah Netburn later today.
U.S. Attorney Damian Williams said: “Rikers Island is less safe, for inmates and officers alike, when corrections officers and others in positions of public trust accept bribes to smuggle contraband. As alleged, the defendant in this case engaged in corruption for her own enrichment. In our relentless pursuit of justice, we leave no stone unturned, especially within the confines of jails and prisons, where the safety and dignity of all individuals must be safeguarded. We will not tolerate any breach of trust or corruption that jeopardizes the well-being of inmates and staff.”
DOI Commissioner Jocelyn E. Strauber said: “The contraband trade destabilizes the City’s jails, and City Correction Officers play a vital role in maintaining order and keeping persons in custody, and their fellow officers, safe. But this defendant, as charged, ignored her obligations and violated the trust the City placed in her when she took bribes in exchange for smuggling dangerous narcotics and other contraband into Rikers Island jail facilities. I thank the U.S. Attorney’s Office for the Southern District of New York and the FBI for their partnership with DOI in the effort to stop illegal contraband smuggling in the City’s jails.”
As alleged in the Complaint:[1]
BARRIENTOS, a former New York City Department of Correction (“DOC”) correction officer, conspired with others to smuggle contraband, including cocaine, smokeable synthetic cannabinoids (known as “K2”), and food, to inmates housed at the Robert N. Davoren Complex on Rikers Island in exchange for thousands of dollars in bribe payments.
For example, on April 11, 2024, CC-1, an associate of an inmate (“Inmate-1”), and BARRIENTOS discussed CC-1 sending BARRIENTOS a package through a delivery service. On April 15, 2024, surveillance footage showed BARRIENTOS entering Inmate-1’s cell, where surveillance footage could not capture her actions. Two days later, DOC searched Inmate-1’s cell and recovered sheets of paper that tested positive for the presence of cocaine.
On April 24, 2024, CC-1 sent BARRIENTOS another package using the delivery service. When BARRIENTOS went to work later that day, a drug-detecting canine alerted for the presence of narcotics. DOC employees searched BARRIENTOS’s belongings and found approximately 10 sheets of paper that tested positive for the presence of K2. In an interview with law enforcement, BARRIENTOS falsely stated, among other things, that no inmate had ever asked her to bring them contraband. Law enforcement officers then searched BARRIENTOS’s vehicle and recovered additional sheets of paper, as well as approximately $2,466 in cash, as shown in the following photographs:
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BARRIENTOS, 37, of Mount Vernon, New York, is charged with one count of conspiracy to commit honest services wire fraud and one count of conspiracy to distribute controlled substances, each of which carries a maximum sentence of 20 years in prison; and one count of false statements, which carries a maximum sentence of five years in prison.
The statutory maximum 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 FBI and DOI.
This case is being handled by the Office’s Public Corruption and Narcotics Units. Assistant U.S. Attorneys Jeffrey Coyle and Sheb Swett 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 text of the Complaint constitutes only allegations, and every fact described herein should be treated as an allegation.
Vice President of International Cargo Airline Sentenced to 32 Months in Prison for Defrauding EmployerRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced today that ABILASH KURIEN was sentenced to 32 months in prison by U.S. District Judge Jesse M. Furman in connection with a massive scheme to defraud Polar Air Cargo Worldwide, Inc. (“Polar”), a leading cargo airline, of more than $32 million dollars in revenue. KURIEN previously pled guilty to conspiracy to commit wire fraud and money laundering.
U.S. Attorney Damian Williams said: “Abilash Kurien betrayed his employer’s trust. Over the course of more than a decade, Kurien took millions of dollars in kickbacks for himself and caused tens of millions in dollars in losses to the company he worked for. This Office and our law enforcement partners will not stop in rooting out corporate fraud.”
According to the charging documents and other filings and statements made in court:
From at least in or about 2009 through in or about July 2021, KURIEN and at least nine other individuals participated in a massive scheme to defraud Polar. At all relevant times, KURIEN and three codefendants were senior executives of Polar (the “Executive Defendants”), and six codefendants (the “Vendor Defendants”) owned and operated various Polar vendors and customers.
The Executive Defendants agreed to accept millions of dollars in kickbacks from the Vendor Defendants, and also reaped substantial financial benefits as a result of their secret ownership interests in certain Polar vendors, in exchange for ensuring that those vendors received favorable business arrangements with Polar. The fraud they perpetrated—which involved a substantial portion of Polar’s senior management and at least 10 customers and vendors of Polar—led to pervasive corruption of Polar’s business, touching nearly every aspect of the company’s operations, for over a decade.
As a result of the scheme, the Executive Defendants, along with two co-conspirators who also worked as senior executives at Polar, received unlawful payments, either directly or through various limited liability companies they controlled, in excess of approximately $23 million in kickback payments or disbursements as a result of their ownership of conflicted companies.
KURIEN was Polar’s Vice President of Marketing, Revenue Management, and Network Planning. He personally received kickbacks totaling over $7 million.
Nine of the defendants charged in this case have pleaded guilty. Skye Xu, the remaining defendant, is scheduled for trial on October 28, 2024.
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In addition to the prison term, KURIEN, 46, of Wilton, Connecticut, was sentenced to 3 years of supervised release. KURIEN was also ordered to forfeit $7,192,064.41 and to make restitution to Polar in the amount of $22,956,341.
Mr. Williams praised the outstanding work of the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigations.
The case is being prosecuted by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Danielle Kudla, Kevin Mead, Qais Ghafary, and Jerry J. Fang are in charge of the prosecution.
United States Obtains Consent Decree Against Rose Demolition & Carting for Violating Lead Paint Safety RegulationsRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, and Lisa F. Garcia, the Regional Administrator of Region 2 of the U.S. Environmental Protection Agency (“EPA”), announced today that the United States filed a civil lawsuit against ROSE DEMOLITION & CARTING INC. (“ROSE”), alleging violations of the Toxic Substances Control Act (“TSCA”) and EPA’s Renovation, Repair, and Painting Rule (“RRP Rule”), and simultaneously entered into a Consent Decree resolving that lawsuit. The Consent Decree includes a $100,000 civil penalty and requires ROSE to take steps to mitigate potential harms caused by its conduct.
A link to the Consent Decree is here.
U.S. Attorney Damian Williams said: “Rose’s failure to contain actual or potential lead dust in the course of demolition work threatened to expose people, including children, to lead poisoning in communities that already suffer disproportionately from public health and environmental hazards. Through this lawsuit and consent decree, we are holding Rose accountable for its misconduct and preventing future violations.”
EPA Regional Administrator Lisa F. Garcia stated: “This settlement underscores the importance of following the laws designed to protect communities, especially young children, from lead paint hazards. Under the Renovation, Repair, and Painting Rule, work must be conducted by certified firms and individuals who are properly trained and equipped to handle toxic lead paint that could pose a serious threat to families and workers.”
TSCA and the RRP Rule impose safety requirements to minimize the risk that young children, tenants, and renovation workers are exposed to toxic lead dust during renovations of residential buildings. Exposure to lead dust is the most common cause of lead poisoning, which can lead to severe, irreversible health problems, particularly in children. Lead poisoning can affect children’s brains and developing nervous systems, causing reduced IQ, learning disabilities, and behavioral problems.
As alleged in the United States’ complaint filed in Manhattan federal court:
ROSE is a company that performed demolition work in at least 668 residential properties in New York City between 2016 and 2019. In February 2018, the New York City Department of Health and Mental Hygiene inspected a worksite two days after ROSE had completed demolition work and found that ROSE had failed to contain or clean lead dust, resulting in lead dust exceeding federal standards in public hallways, in violation of the RRP Rule. EPA determined that ROSE failed to assign properly certified managers to direct the demolition work, failed to train its workers on lead-safe work practices, and failed to inform the building owner and occupants of the risks of lead poisoning during that renovation. Many of ROSE’s alleged violations occurred in areas of New York City with low-income populations that are already disproportionately burdened by other environmental hazards, raising environmental justice concerns.
In the Consent Decree, ROSE admits, acknowledges, and accepts responsibility for the following conduct:
- Failing to assign a Certified Renovator to direct the demolition work and discharge all of the Certified Renovator responsibilities identified in the RRP Rule;
- Failing to ensure that all workers performing the renovations were Certified Renovators or had received training on lead-safe work practices required by the RRP Rule;
- Failing to adequately contain construction dust, including dust containing high concentrations of lead, in violation of the RRP Rule;
- Failing to post signs clearly defining its work area and warning occupants and other persons not involved in renovation activities to remain outside of the work area in violation of the RRP Rule;
- Failing to provide a lead-hazard information pamphlet to the owner or occupants of the building before commencing work in violation of the RRP Rule; and
- Failing to maintain documentation showing that it provided lead-hazard information pamphlets to the owners or occupants of the building or that it had posted warning signs in the building, in violation of the RRP Rule.
Pursuant to the Consent Decree, ROSE will pay a penalty of $100,000, an amount based on the company’s documented inability to pay the full civil penalty for which it otherwise would be liable, and ROSE must comply with safe work practices and other RRP Rule requirements in the future. Additionally, the Consent Decree requires ROSE to notify residents or owners of the 668 affected properties as well as ROSE employees who worked on the affected properties of potential lead exposure and offer lead-dust inspection, cleanup, and clearance testing. Failure to comply with the Consent Decree will give rise to significant additional penalties.
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To provide public notice and afford members of the public the opportunity to comment on the Consent Decree, the Consent Decree will be lodged with the District Court for a period of at least 30 days before it is submitted for the Court’s approval.
Mr. Williams thanked the attorneys and enforcement staff at EPA Region 2 for their critical work in this matter.
This case is being handled by the Environmental Protection Unit of the Office’s Civil Division. Assistant U.S. Attorney Mónica P. Folch is in charge of the case.
u.s._v._rose_demolition_carting_complaint.pdfU.S. Attorney Announces Charges Against 18 Defendants in Scheme to Manufacture and Distribute Millions of Deadly Counterfeit Pharmaceuticals Through Fake Online PharmaciesRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York; Katrina W. Berger, the Executive Associate Director of Homeland Security Investigations (“HSI”); Anne Milgram, the Administrator of the U.S. Drug Enforcement Administration (“DEA”); William S. Walker, the Special Agent in Charge of the New York Field Office of HSI; Frank A. Tarentino III, the Special Agent in Charge of the New York Division of the DEA; and Daniel B. Brubaker, the Inspector in Charge of the New York Division of the U.S. Postal Inspection Service (“USPIS”), announced today the unsealing of charges against FRANCISCO ALBERTO LOPEZ REYES, a/k/a “Frank,” and 17 other defendants located in the United States, Dominican Republic, and India for their involvement in a scheme to advertise, sell, manufacture, and ship millions of deadly pills disguised as legitimate pharmaceuticals. These counterfeit pills were purchased by tens of thousands of victims from fake online pharmacies run by LOPEZ REYES and his co-conspirators. At least nine of those victims later died of narcotics poisoning. Federal authorities have seized nine website domains used by the defendants and their co-conspirators to sell counterfeit pills, four of which are named in the Indictment. The case is assigned to U.S. District Judge John P. Cronan.
U.S. Attorney Damian Williams said: “The proliferation of fake online pharmacies is fueling this nation’s fentanyl epidemic. As alleged, Francisco Lopez Reyes, a/k/a “Frank,” and his lieutenants have run a global network of these websites and aggressively marketed, manufactured, sold, and distributed millions of deadly fentanyl pills meant to mimic legitimate prescription drugs. The victims of the scheme include people from all walks of life—people of all ages and occupations—from all 50 states, the U.S. Virgin Islands, Puerto Rico, Germany, and Slovenia. At least nine victims who purchased counterfeit pills from the defendants died of narcotics poisoning, including a 45-year-old army veteran who thought she was purchasing real oxycodone. Today’s charges show this Office’s unrelenting commitment to fighting the proliferation of fentanyl and counterfeit pharmaceuticals. I commend the career prosecutors of the Southern District of New York and our partners at the Drug Enforcement Administration, Homeland Security Investigations, and the United States Postal Inspection Service for their tireless efforts to bring those poisoning our communities to justice.”
HSI Executive Associate Director Katrina W. Berger said: “Trafficking counterfeit pharmaceuticals is not just a crime; it is a threat to public health. HSI is committed to working with our partners to stop those who poison our neighborhoods for the sake of profit.”
DEA Administrator Anne Milgram said: “The 18 defendants in this case operated a sophisticated network of fake online pharmacies and pill mills in India, the Dominican Republic, and the United States that preyed on Americans who believed they were purchasing legitimate medications from legitimate pharmacies. The defendants exploited the online pharmacy market to sell counterfeit pills laced with fentanyl and methamphetamine to unsuspecting victims. These individuals sold millions of dangerous fake pills to victims in every U.S. state and the District of Columbia. The defendants did this to make money by driving addiction with deadly, highly-addictive fentanyl. The DEA is relentlessly focused on saving lives by finding these criminal networks and shutting them down.”
HSI Special Agent in Charge William S. Walker said: “In just the last few months, Homeland Security Investigations agents, analysts, and task force officers in New York City have intercepted hundreds of pounds of fentanyl and other deadly narcotics. Investigators uncovered illicit clandestine drug labs operating in residential basements, and seized fentanyl from parcel facilities where day-to-day mail is processed. We further uncovered strategies allegedly used by those who deal death to exploit parcel systems in furtherance their illegal enterprise. HSI is on the frontlines of the fentanyl epidemic, doing everything in our power to prevent the deadly narcotic from reaching just one more victim. We stand shoulder-to-shoulder with grieving families who were forced to say goodbye to their loved ones too soon.”
DEA Special Agent in Charge Frank A. Tarentino III said: “Over the past year, our DEA New York team, along with our law enforcement partners, targeted those individuals involved in the operation of illegal pill mills in the Bronx and Manhattan, producing deadly fake pills made up of fentanyl and methamphetamine. This investigation demonstrates the complexity and global influence that predatory drug trafficking organizations have on our communities, families, and young people; many times, leaving a trail of devastation in its path.”
USPIS Inspector in Charge Daniel B. Brubaker said: “We are proud to be working with our law enforcement partners on this impactful case. These arrests represent the progress we have made to disrupt and ultimately dismantle this illegal narcotics distribution network. The defendants allegedly took advantage of the online pharmaceutical space and preyed upon innocent victims who were in need of medication, people suffering with legitimate ailments. Postal Inspectors will constantly be vigilant in this fight against fentanyl and all illicit drugs, to preserve the integrity of the mail and most importantly to keep our employees and the American public safe.”
According to the allegations contained in the Indictment:[1]
The proliferation of unregulated online pharmacies has fueled the nation’s fentanyl epidemic, enabling drug traffickers to peddle direct-to-consumer counterfeit pharmaceuticals, which are devoid of the medication they purport to contain and are instead comprised of deadly narcotics like fentanyl and its analogues.
For at least the last two and a half years, a network of individuals located in the U.S., the Dominican Republic, India, and elsewhere have exploited Americans’ reliance on online pharmacies by advertising, selling, manufacturing, and shipping through the mail millions of unregulated counterfeit prescription pills to tens of thousands of victims. Instead of prescription drugs at a bargain, what customers actually received were phony pills made of fentanyl, para-fluorofentanyl—an analogue of fentanyl—and methamphetamine. Shaped, dyed, and stamped to be indistinguishable from actual prescription medication, these tablets were in fact manufactured by the defendants in industrial-scale milling facilities, or pill mills, located in the basements of several residential buildings in, among other places, Manhattan and the Bronx, New York.
As part of this scheme, the defendants shipped counterfeit pharmaceuticals to victims across the United States and around the world, including in all 50 U.S. states, Washington, D.C., the U.S. Virgin Islands, Puerto Rico, Germany, and Slovenia. The victims of this criminal enterprise range in age from at least 23 to 77 years old. They include veterans, doctors, lawyers, musicians, artists, politicians, economists, restaurant managers, personal trainers, dancers, former schoolteachers, administrative executives, and first responders, among others.
Between in or about August 2023 and in or about June 2024, at least nine victims—all of whom purchased counterfeit prescription pills from the defendants—died of narcotics poisoning. One victim, Victim-1, a 45-year-old woman, was a veteran who had served for 12 years in the U.S. Army National Guard. Victim-1 believed she was purchasing 30-milligram oxycodone, also known as “M30s,” from the defendants’ online pharmacy, but the pills were, in fact, made of fentanyl and para-fluorofentanyl. After receiving the pills, Victim-1 conducted research to attempt to learn whether the pills were genuine, but, because the defendants made the pills look real, Victim-1 was unable to tell the difference. Five days after receiving counterfeit oxycodone pills advertised, sold, manufactured, and shipped by the defendants, Victim-1 died from acute fentanyl intoxication. The fake oxycodone pills that killed Victim-1, which were recovered from her bedside, are pictured below:
LOPEZ REYES led the enterprise, orchestrating and controlling every facet of the scheme from the Dominican Republic. With his co-conspirators, LOPEZ REYES set up dozens of online pharmacy websites, designed to appear legitimate in order to lure customers into buying, at reduced prices, tablets of fentanyl, para-fluorofentanyl, and methamphetamine disguised as real prescription medications, including oxycodone, hydrocodone, Adderall, and Xanax, among others. LOPEZ REYES also relied on others, including SADIQ ABBAS HABIB SAYYED, a/k/a “Rakesh Sharma,” a/k/a “Jonathan Acosta,” KHIZAR MOHAMMAD IQBAL SHAIKH, and ALBA GONZALEZ to sell counterfeit pills to Americans over the internet and through encrypted messaging platforms. The homepage of one such website, Curecog.com (“Curecog”), is pictured below. Curecog purported to be a “US-based online pharma store” that was “approved” by the U.S. Food and Drug Administration (“FDA”), which “serve[s] affordable medicines . . . approved by specialists and manufactured by trusted brands.” Curecog, however, was neither legitimate nor FDA approved. Instead, Curecog was a fraudulent storefront that peddled the defendants’ controlled substances, including fentanyl.
To fulfill pill orders, LOPEZ REYES enlisted JUAN EFREN PAULINO, a/k/a “Freddy,” and JUAN MOISES PEREZ MENDEZ, a/k/a “Caballero,” as his principal lieutenants to oversee the operation of multiple pill mills in New York City. At those pill mills, workers used dyes with specific colors and specialized equipment with custom molds to press powdered narcotics so as to mimic the color, shape, size, and markings of commercially manufactured prescription pills, at rates of up to 100,000 pills every 12 hours. Law enforcement raided at least three of these pill mills and two other narcotics storage locations, seizing approximately 625,000 counterfeit pills—the majority of which contained fentanyl, para-fluorofentanyl, and/or methamphetamine—10 industrial pill presses, commercial mixers, industrial-grade gas masks, and more. At these facilities, law enforcement also seized staggering quantities of not yet processed narcotics. In total, law enforcement seized approximately 255 pounds of para-fluorofentanyl, 100 pounds of fentanyl, and 215 pounds of methamphetamine, in pill, powder, and crystal form. Each of these seizures were a mere snapshot in time, representing only a single day’s working supply at these pill mills and storage locations. Multiple defendants—including EFREN PAULINO, PEREZ MENDEZ, WELLINGTON EUSTATE ESPINAL, a/k/a “Roni,” HERIBERTO EUSTATE ESPINAL, a/k/a “Daulin,” EUSEBIO PERALTA BAUTISTA, a/k/a “Luis Collazo Santos,” HECTOR BIENVENIDO FELIZ FELIZ, a/k/a “Tacoma,” and LUIS PAULINO—worked at these pill mills day and night. A photograph of the over 190,000 pills seized from just one of the defendants’ pill mills is pictured below:
After the defendants manufactured the counterfeit pills containing fentanyl and methamphetamine, a network of shippers, including MIGUEL CONCEPCION BRITO, CYNTHIA ONEGA, EDWARD EUSTATE JIMENEZ, a/k/a “Chino,” ROBERT JUNIOR RAMOS HENRIQUEZ, a/k/a “Junior,” a/k/a “Kiko,” JOSE CONCEPCION BRITO, ANGEL VALDEZ BRITO, and WILIANYI ALMANZAR POLANCO, packaged and mailed the pills to customers across the country at the direction of LOPEZ REYES, who specified to whom and where to ship particular types and quantities of pills. After orders were delivered, the defendants and their co-conspirators bombarded customers with aggressive and manipulative marketing tactics to pressure their victims to order more illegal pills, including by providing unsolicited free samples via mail of counterfeit pills containing addictive and deadly fentanyl and near-daily outreach by phone call or text message. One victim had to block up to 30 phone numbers in an effort to stop the harassment.
Information about safe, legal internet pharmacies is available. According to the FDA, a safe, legal internet pharmacy:
- always requires a doctor’s prescription;
- has a physical address and telephone number in the United States;
- is licensed in the state(s) in which they are operating;
- is licensed in all states in which they do business; and
- has a state-licensed pharmacist on staff to answer patient questions.
The FDA also maintains the BeSafeRx campaign, with resources and tools to help make safer, more informed decisions when purchasing prescription medicine from an online pharmacy. That resource is available at: https://www.fda.gov/drugs/quick-tips-buying-medicines-over-internet/besaferx-your-source-online-pharmacy-information.
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A chart containing the charges and minimum and maximum penalties each defendant faces is attached.
The statutory minimum and maximum penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by a judge.
Mr. Williams praised the outstanding investigative work of the El Dorado Task Force International Narcotics and Money Laundering Unit, which is comprised of law enforcement officers and investigators from the DEA, HSI, the New York City Police Department, the New York State Police, the USPIS, the Internal Revenue Service, and the Kings County District Attorney’s Office; the New York City Border Enforcement Security Task Force Contraband Group; the Organized Crime Drug Enforcement Task Forces’ (“OCDETF”) New York Strike Force; the USPIS New York Division Contraband Interdiction and Investigations Team; HSI New York; and the DEA New York Field Division. Mr. Williams also thanked HSI Santo Domingo, the DEA Dominican Republic Country Office, the U.S. Marshals Service Dominican Republic Foreign Field Office, the U.S. Attorney’s Office for the District of New Jersey, and the Department of Justice’s Office of International Affairs for their assistance.
The OCDETF New York Strike Force provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations to disrupt and dismantle the most significant drug traffickers, money launderers, gangs, and transnational criminal organizations. The specific mission of the New York Strike Force is to target, disrupt, and dismantle drug trafficking and money laundering organizations, reduce the illegal drug supply in the U.S., and bring criminals to justice. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
This case is being handled by the Office’s Narcotics Unit. Assistant U.S. Attorneys Maggie Lynaugh, Adam Sowlati, Chelsea Scism, Katherine Cheng, Camille Fletcher, and Lisa Daniels are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Defendant
Age
Charges
Minimum and Maximum Penalties
FRANCISCO ALBERTO LOPEZ REYES, a/k/a “Frank”
44Continuing criminal enterprise (principal); narcotics trafficking conspiracy resulting in death; distribution of narcotics resulting in death; conspiracy to commit money launderingMandatory life in prisonJUAN EFREN PAULINO, a/k/a “Freddy”
53Continuing criminal enterprise; narcotics trafficking conspiracy resulting in deathMandatory minimum of 20 years in prison; life in prisonJUAN MOISES PEREZ MENDEZ, a/k/a “Caballero”
56Continuing criminal enterprise; narcotics trafficking conspiracy resulting in deathMandatory minimum of 20 years in prison; life in prisonSADIQ ABBAS HABIB SAYYED, a/k/a “Rakesh Sharma,” a/k/a “Jonathan Acosta”39Narcotics trafficking conspiracy resulting in deathMandatory minimum of 20 years in prison; life in prisonKHIZAR MOHAMMAD IQBAL SHAIKH33Narcotics trafficking conspiracy resulting in deathMandatory minimum of 20 years in prison; life in prisonWELLINGTON EUSTATE ESPINAL, a/k/a “Roni”42Narcotics trafficking conspiracy resulting in deathMandatory minimum of 20 years in prison; life in prisonHERIBERTO EUSTATE ESPINAL, a/k/a “Daulin”28Narcotics trafficking conspiracy resulting in deathMandatory minimum of 20 years in prison; life in prisonEUSEBIO PERALTA BAUTISTA, a/k/a “Luis Collazo Santos”59Narcotics trafficking conspiracy resulting in deathMandatory minimum of 20 years in prison; life in prisonHECTOR BIENVENIDO FELIZ FELIZ, a/k/a “Tacoma”45Narcotics trafficking conspiracy resulting in deathMandatory minimum of 20 years in prison; life in prisonLUIS PAULINO66Narcotics trafficking conspiracy resulting in deathMandatory minimum of 20 years in prison; life in prisonMIGUEL CONCEPCION BRITO27Narcotics trafficking conspiracy resulting in deathMandatory minimum of 20 years in prison; life in prisonCYNTHIA ONEGA22Narcotics trafficking conspiracy resulting in deathMandatory minimum of 20 years in prison; life in prisonEDWARD EUSTATE JIMENEZ, a/k/a “Chino”22Narcotics trafficking conspiracy resulting in death; distribution of narcotics resulting in deathMandatory minimum of 20 years in prison; life in prisonROBERT JUNIOR RAMOS HENRIQUEZ, a/k/a “Junior,” a/k/a “Kiko”34Narcotics trafficking conspiracy resulting in death; distribution of narcotics resulting in deathMandatory minimum of 20 years in prison; life in prisonALBA GONZALEZ36Narcotics trafficking conspiracy resulting in death; distribution of narcotics resulting in deathMandatory minimum of 20 years in prison; life in prisonJOSE CONCEPCION BRITO28Narcotics trafficking conspiracy resulting in deathMandatory minimum of 20 years in prison; life in prisonANGEL VALDEZ BRITO29Narcotics trafficking conspiracy resulting in deathMandatory minimum of 20 years in prison; life in prisonWILIANYI ALMANZAR POLANCO34Narcotics trafficking conspiracy resulting in deathMandatory minimum of 20 years in prison; life in prisonHusband and Wife Found Guilty of Murder and Car-JackingRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that, on Friday, September 27, 2024, a jury found JAMIE ORSINI and NICHOLAS ORSINI guilty of carjacking resulting in death and conspiracy to commit carjacking. The ORSINIs were found guilty following a two-week trial before U.S. District Judge Philip M. Halpern.
U.S. Attorney Damian Williams said: “Over four years ago, in Beacon, New York, Jamie and Nicholas Orsini killed Jamie’s ex-husband, Steven Kraft, and engaged in a sophisticated scheme to hide their crime. Indeed, Kraft’s body still has not been found. For more than four years, Kraft’s family has waited for justice. Their wait is now over. With its verdict, the jury has now held Kraft’s ex-wife—Jamie Orsini—and her husband—Nicholas Orsini—responsible for that murder and subsequent cover-up. This should serve as a lesson: if you commit a crime—if you commit a murder—it does not matter how well you cover your tracks, or how successfully you think you destroyed the evidence, law enforcement will not give up, and the career prosecutors of this Office and our law enforcement partners will never stop investigating and prosecuting these righteous cases. If any member of the public has information that they wish to share with us about any unsolved murder, then we encourage you to come forward.”
According to the Indictment, public court filings, and the evidence presented at trial:
In 2020, JAMIE and NICHOLAS ORSINI plotted the murder of JAMIE ORSINI’s ex-husband, Steven Kraft. As part of that murder, they planned a sophisticated cover-up, involving the use of burner phones, the movement of Kraft’s car to a different city, and the destruction and disposal of all physical evidence. Among other things, they purchased items—such as a 1,000-square-foot tarp and a full-body coverall—to allow them to commit the murder and dispose of evidence, they repeatedly practiced “dry runs” for how they would move Kraft’s car, and they purchased a “burner phone” to use without law enforcement being able to trace the phone to them. On April 28, 2020, in Beacon, New York, after Kraft dropped his daughters off with the ORSINIs, who had custody of their children, the ORSINIs killed Kraft and took his car and cellphone. NICHOLAS ORSINI then drove the car into Newburgh, New York, leaving it in a high-crime neighborhood, got rid of Kraft’s cellphone, and used the burner phone to call a taxi to bring him back to Beacon, throwing the burner phone out before getting into the taxi.
After the murder, the ORSINIs managed to destroy or dispose of evidence—including Steven Kraft’s body—buying a new burner phone to use when they repeatedly drove to and from upstate New York, and creating large homemade incinerators. JAMIE ORSINI sent multiple text messages to make it look like she believed that Kraft was still alive, and, having dumped Kraft’s car in Newburgh, when speaking with the police, professed ignorance, but kept hinting that, maybe if Kraft went to Newburgh after leaving her home, something might have happened to him there.
If you believe you have information related to the ORSINIs, or the location of Steven Kraft’s body, please consider reporting using the following link: https://www.justice.gov/usao-sdny/report-crime.
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JAMIE ORSINI, 38, and NICHOLAS ORSINI, 36, both of Amsterdam, New York, were each convicted of: carjacking resulting in death; and participating in a conspiracy to commit carjacking. The carjacking count carries a maximum sentence of life in prison, and the conspiracy count carries a maximum sentence of five years in prison.
The maximum potential sentences in this case are prescribed by Congress and provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.
Mr. Williams praised the outstanding work of the Federal Bureau of Investigation and the New York State Police, which also supported the prosecution through trial. He also thanked the Dutchess County District Attorney’s Office, the Ulster County District Attorney’s Office, the City of Beacon Police Department, the Town of Marlborough Police Department, and the City of Newburgh Police Department.
This case is being handled by the Office’s White Plains Division. Assistant U.S. Attorneys Kaiya Arroyo, Michael D. Maimin, and Kathryn P. Wheelock are in charge of the prosecution, with the assistance of Paralegal Specialists Shannon Becker and Liam Ronan.
New York City Mayor Eric Adams Charged with Bribery and Campaign Finance OffensesRead the Press Release
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 Jocelyn E. Strauber, the Commissioner of the New York City Department of Investigation (“DOI”), announced today the unsealing of an Indictment charging ERIC ADAMS, the Mayor of New York City, with bribery, campaign finance, and conspiracy offenses. The case is assigned to U.S. District Judge Dale E. Ho.
U.S. Attorney Damian Williams said: “As alleged, Mayor Adams abused his position as this City’s highest elected official, and before that as Brooklyn Borough President, to take bribes and solicit illegal campaign contributions. By allegedly taking improper and illegal benefits from foreign nationals—including to allow a Manhattan skyscraper to open without a fire inspection—Adams put the interests of his benefactors, including a foreign official, above those of his constituents. This Office and our partners at the FBI and DOI will continue to pursue corruption anywhere in this City, especially when that corruption takes the form of illegal foreign influence on our democratic system.”
FBI Assistant Director James E. Dennehy said: “Today’s indictment serves as a sobering moment but also sends a powerful message to every elected official in this country: public service is a profound responsibility, and it should be a noble calling. When that’s perverted by greed and dishonesty, it robs us of our trust. This is a reminder that no one is above the law or beyond reproach.”
DOI Commissioner Jocelyn E. Strauber said: “The indictment unsealed today alleges that Mayor Adams abused his power and position for nearly a decade, obtaining personal benefits and illegal campaign contributions from foreign nationals, and others, giving them undue influence over him. As charged, this illegal conduct compromised his integrity as an elected official and New Yorkers expect better. I thank the U.S. Attorney’s Office for the Southern District of New York and the FBI for their commitment to partner with DOI to root out corruption in City government.”
As alleged in the Indictment:[1]
For nearly a decade, ADAMS has used his prominent positions in New York City government to obtain illegal campaign contributions and luxury travel. ADAMS solicited and accepted these benefits from foreign nationals, businessmen, and others. ADAMS then pressured the New York City Fire Department to facilitate the opening of a foreign government’s Manhattan skyscraper that had not passed a fire inspection. To conceal this criminal conduct, ADAMS took steps to hide his receipt of improper benefits from the public and law enforcement.
In 2014, ADAMS was elected Brooklyn Borough President. Thereafter, ADAMS sought and accepted improper valuable benefits, such as luxury international travel, including from wealthy foreign businesspeople and at least one Turkish government official seeking to gain influence over him. By 2018, ADAMS—who had by then made known his plans to run for Mayor of New York City—not only accepted, but sought illegal campaign contributions to his 2021 mayoral campaign from foreign nationals, as well as other things of value. As ADAMS’s prominence and power grew, his foreign-national benefactors sought to cash-in on their corrupt relationships with him, particularly when it became clear that ADAMS would become New York City’s mayor in 2021. ADAMS agreed, providing favorable treatment in exchange for the illicit benefits he received. After his inauguration as Mayor of New York City, ADAMS soon began preparing for his next election, including by planning to solicit more illegal contributions and granting requests from those who supported his 2021 mayoral campaign with such donations.
ADAMS sought and accepted illegal campaign contributions in the form of “nominee” or “straw” contributions, meaning that the true contributors conveyed their money through nominal donors, who falsely certified they were contributing their own money. By smuggling their contributions to ADAMS through U.S.-based straw donors, ADAMS’s overseas contributors defeated federal laws that serve to prevent foreign influence on U.S. elections. Wealthy individuals evaded laws designed to limit their power over elected officials by restricting the amount any one person can donate to a candidate. And businesses circumvented New York City’s ban on corporate contributions by funneling their donations through multiple employees, frustrating a law which seeks to reduce corporate power in politics. ADAMS increased his fundraising by accepting these concealed, illegal donations—at the cost of giving his secret patrons the undue influence over him that the law tries to prevent.
ADAMS compounded his gains from the straw contributions by using them to defraud New York City and steal public funds. New York City has a matching funds program that matches small-dollar contributions from individual City residents with up to eight times their amount in public funds, to give New Yorkers a greater voice in elections. ADAMS’s campaigns applied for matching funds based on known straw donations, fraudulently obtaining as much as $2,000 in public funds for each illegal contribution. ADAMS and those working at his direction falsely certified compliance with applicable campaign finance regulations despite ADAMS’s repeated acceptance of straw donations, relying on the concealed nature of these illegal contributions to falsely portray his campaigns as law-abiding. As a result of those false certifications, ADAMS’s 2021 mayoral campaign received more than $10,000,000 in public funds.
ADAMS also sought and received other improper benefits from some of the same co-conspirators who funneled straw donations to his campaigns. In particular, a senior official in the Turkish diplomatic establishment (the “Turkish Official”), who facilitated many straw donations to ADAMS, also arranged for ADAMS and his companions to receive free or discounted travel on Turkey’s national airline (the “Turkish Airline”), which is owned in significant part by the Turkish Government, to destinations including France, China, Sri Lanka, India, Hungary, and Turkey itself. The Turkish Official and other Turkish nationals further arranged for ADAMS and his companions to receive, among other things, free rooms at opulent hotels, free meals at high-end restaurants, and free luxurious entertainment—while in Turkey.
ADAMS and others working at his direction repeatedly took steps to shield his solicitation and acceptance of these benefits from public scrutiny. ADAMS did not disclose the travel benefits he had obtained in annual financial disclosures he was required to file as a New York City employee. Sometimes, ADAMS agreed to pay a nominal fee, to create the appearance of having paid for travel that was heavily discounted. Other times, ADAMS created and instructed others to create fake paper trails, falsely suggesting that he had paid, or planned to pay, for travel benefits that were actually free. And ADAMS deleted messages with others involved in his misconduct, including, in one instance, assuring a co-conspirator in writing that he “always” deleted her messages.
In September 2021, the Turkish Official told ADAMS that it was his turn to repay the Turkish Official, by pressuring the New York City Fire Department (“FDNY”) to facilitate the opening of a new Turkish consular building—a 36-story skyscraper—without a fire inspection, in time for a high-profile visit by Turkey’s president. At the time, the building would have failed an FDNY inspection. In exchange for free travel and other travel-related bribes in 2021 and 2022 arranged by the Turkish Official, ADAMS did as instructed. Because of ADAMS’s pressure on the FDNY, the FDNY official responsible for the FDNY’s assessment of the skyscraper’s fire safety was told that he would lose his job if he failed to acquiesce, and, after ADAMS intervened, the skyscraper opened as requested by the Turkish Official.
If you believe you have information related to bribery, fraud, or any other illegal conduct by ADAMS or any other New York City employees, please contact DOI at [email protected] or (212) 825-2828. If you were involved in such conduct, please consider self-disclosing through the SDNY Whistleblower Pilot Program at [email protected].
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ADAMS, 64, of Brooklyn, New York, is charged with one count of conspiracy to receive campaign contributions from foreign nationals and commit wire fraud and bribery, which carries a maximum sentence of five years in prison; one count of wire fraud, which carries a maximum sentence of 20 years in prison; two counts of soliciting campaign contributions from foreign nationals, which each carry a maximum sentence of five years in prison; and one count of soliciting and accepting a bribe, which carries a maximum sentence of 10 years in prison.
The statutory maximum penalties 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 FBI and DOI.
The prosecution of this case is being handled by the Office’s Public Corruption Unit. Assistant U.S. Attorneys Hagan Scotten, Celia V. Cohen, Andrew Rohrbach, and Derek Wikstrom 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.
A link to the Indictment is here.
[1] As the introductory phrase signifies, the entirety of the Indictment and the descriptions of the Indictment set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Long Island Man Convicted at Trial of Participating in Multimillion-Dollar Cryptocurrency-Related CrimesRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that EUGENE WILLIAM AUSTIN, JR., a/k/a “Hugh Austin” (“AUSTIN”) was convicted Tuesday, September 24, 2024, of three criminal counts stemming from his participation in a conspiracy to commit wire fraud, money laundering, and the interstate transportation of stolen property. The defendant and his son, BRANDON AUSTIN (“BRANDON”), were responsible for defrauding numerous victims across the country of millions of dollars. AUSTIN was convicted after a jury trial before U.S. District Judge P. Kevin Castel. The defendant’s son, BRANDON, previously pled guilty to conspiracy to commit money laundering and was sentenced principally to 4 years in prison.
U.S. Attorney Damian Williams said: “A unanimous jury has found that Hugh Austin engaged in a yearslong fraud and money laundering scheme. Austin’s scheming caused millions of dollars of losses. Austin even conspired with his own son to rip off his victims. Thanks to the hard work of the career prosecutors of this Office and our law enforcement partners, Austin’s crime spree has come to an end, and he will be held accountable for his conduct.”
As reflected in the Indictment, public filings, and the evidence presented at trial:
AUSTIN participated in a scheme with his son BRANDON and others to steal money from entrepreneurs, investors, and other victims by fraudulently offering to, among other things: serve as a broker for sales of large quantities of cryptocurrency; provide short-term investments in cryptocurrency for purportedly high returns; and secure investors for startups and other small businesses from their purported network of high-net-worth individuals. AUSTIN also frequently sought personal loans from friends and acquaintances in connection with AUSTIN’s purported cryptocurrency and investment businesses, falsely promising to pay lenders back with interest. In each instance, investors and lenders lost their money, and AUSTIN and BRANDON frequently spent investors’ funds on personal expenses, including airline travel, luxury hotels, restaurants, shopping, transfers of money to relatives, as well as nominal payments to victims to prolong the scheme. Over the course of the scheme, AUSTIN and BRANDON have caused millions of dollars in losses to numerous victims all over the country. Below are several examples of victims defrauded by AUSTIN and BRANDON.
- In or about August 2018, AUSTIN and BRANDON fraudulently induced a California-based investment firm to send an interstate wire transfer of approximately $5 million to a Manhattan-based attorney for the purported purchase of cryptocurrency, which was never provided to the victim.
- In or about September 2018, AUSTIN and BRANDON fraudulently induced a cryptocurrency start-up company to send an interstate wire transfer of approximately $100,000 as a short-term loan for a purported cryptocurrency transaction; instead of using the funds as promised, AUSTIN and BRANDON used the money to fund their lifestyle.
- In or about June 2020, AUSTIN and BRANDON laundered approximately $567,000 that had been sent via an interstate wire transfer to the trust account of a New York-based real estate attorney for a purported cryptocurrency transaction.
- In or about October 2021, AUSTIN and BRANDON stole approximately $528,000 that had been sent via an interstate wire transfer to the bank account of a Manhattan-based company for the purported purchase of Bitcoin.
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AUSTIN, 62, of Port Jefferson, New York, was convicted by a jury of one count of conspiracy to commit wire fraud, which carries a maximum sentence of 20 year in prison; one count of conspiracy to commit money laundering, which carries a maximum sentence of 20 years in prison; and one count of conspiracy to receive stolen property, which carries a maximum sentence of five years in prison. AUSTIN will be sentenced before Judge Castel on February 20, 2025.
The maximum potential sentences are prescribed by Congress and provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Williams praised the outstanding investigative work of Homeland Security Investigations.
The prosecution of this case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Andrew Chan, Steven Kochevar, Matthew Weinberg, and Olga I. Zverovich are in charge of the prosecution, with assistance from Paralegal Specialists Chanel-Ashley Foster, Frank Mastroianni, and Christine Woods.
Nigerian Man Pleads Guilty After Extradition to Participating in Romance Scams and Other Fraud Schemes Targeting Elderly VictimsRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that ISAIAH OKERE plead guilty today before U.S. District Judge Lewis Liman to charges stemming from his participation in an international conspiracy to defraud at least 15 victims of romance schemes, lottery scams, and business email compromise schemes.
U.S. Attorney Damian Williams said: “Isaiah Okere and his co-conspirators preyed on elderly and vulnerable victims, some of whom lost their entire life savings. Even though he operated his scams from a country halfway around the world, this Office’s global reach ensures that he will be held accountable in the United States for his crimes.”
According to Count One of the Information to which OKERE pled guilty and other statements and submissions made in Court:
From at least in or about 2015 up to and including November 2019, OKERE and co-conspirator Timy Hakim conspired with members of the “Black Axe” transnational criminal organization to engage in fraudulent schemes that left at least 15 people and entities with over a million dollars in losses. OKERE facilitated the laundering of proceeds of three types of fraud schemes, a “Romance Scheme,” a “Lottery Scheme,” and a “BEC Fraud Scheme.” Through the Romance Scheme, a vulnerable individual was led to believe she or he was in a romantic online relationship with a perpetrator of the Scheme when, in fact, the perpetrator merely used this as a mechanism to build the victim’s trust and solicit the victim’s money. Through the Lottery Scheme, the scheme participants informed certain victims that they had won a cash prize but first needed to make certain payments to access the funds. Through the BEC Fraud Scheme, the scheme participants induced a corporate victim located in Manhattan to release company funds under fraudulent pretenses by impersonating the founder of the company.
OKERE used accounts under false identities to communicate directly with his U.S. victims. He also controlled multiple foreign bank accounts in South Africa that received funds from victims targeted by these schemes.
At least 15 individual and corporate victims lost money as part of OKERE, Hakim, and their co-conspirators’ schemes. They include vulnerable, isolated, and elderly victims who entered into relationships after the deaths of their spouses and, over a period of several years, were induced to drain their entire retirement savings and take out loans from family and friends. Many victims experienced severe emotional harm, including a woman who reported becoming suicidal after losing her retirement savings to this scheme.
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OKERE, 42, a citizen of the Republic of Nigeria, was arrested in South Africa on the basis of a provisional arrest warrant in December 2021 and was extradited on August 23, 2024. He pled guilty today to one count of conspiracy to commit wire fraud, which carries a maximum sentence of five years in prison.
On September 27, 2023, co-defendant Timy Hakim was sentenced to two years in prison and was ordered to pay $1,414,043 in restitution and forfeit $671,452.
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 Federal Bureau of Investigation. Mr. Williams also thanked the South African Department of Justice and Constitutional Development, National Prosecuting Authority of South Africa, and the South African Police Service. The U.S. Department of Justice’s Office of International Affairs provided significant assistance in securing the defendant’s extradition from South Africa.
The criminal case is being prosecuted by the Office’s Illicit Finance and Money Laundering Unit. Assistant U.S. Attorney Vladislav Vainberg is in charge of the prosecution.
200s Gang Member Charged with 2019 Murder of Innocent BystanderRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, and James 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 LUIS FILPO with racketeering conspiracy, murder in aid of racketeering, and murder through the use of a firearm. These charges relate to FILPO’s alleged membership in a street gang known as “the 200s,” operating in and around upper Manhattan. As alleged, on January 31, 2019, FILPO and other 200s members shot and killed Roberto Vasquez, an innocent bystander who was mistaken for a gang rival. FILPO, who was in New York State custody, was transferred to federal custody yesterday and made his initial appearance in federal court in Manhattan. The case has been assigned to U.S. District Judge Paul A. Engelmayer.
U.S. Attorney Damian Williams said: “As alleged, Luis Filpo murdered Roberto Vasquez after mistaking him for a gang rival. Thanks to the hard work of the prosecutors in this Office and our law enforcement partners, Filpo will finally be held to account for this heinous crime. We hope that these charges bring some measure of comfort to Mr. Vasquez’s family and make clear that this Office and our law enforcement partners will never stop investigating those who commit violence on our streets.”
According to the allegations in the Indictment unsealed yesterday in Manhattan federal court[1] and other court documents:
From at least in or about 2016 up to and including March 2022, in the Southern District of New York and elsewhere, FILPO was a member of the 200s street gang. In order to fund the gang, protect its territory, and promote its standing, members of the 200s engaged in, among other things, narcotics trafficking and other acts of violence, including murder. Members of the 200s sold narcotics in the gang’s territory and engaged in shootings as part of their gang membership. In particular, on January 31, 2019, FILPO shot and killed Roberto Vasquez, an innocent bystander mistaken for a rival gang member, in the vicinity of 158th Street and Broadway Avenue, in Manhattan, New York.
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FILPO, 25, of New York, New York, is charged with one count of racketeering conspiracy, which carries a maximum term of life in prison; one count of murder in aid of racketeering, which carries a mandatory minimum term of life in prison or death; and one count of causing death through use of a firearm, which carries a maximum term of life in prison or death.
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 defendant will be determined by the judge.
Mr. Williams praised the outstanding investigative work of the FBI and New York City Police Department.
The case is being handled by the Office’s Violent and Organized Crime Unit. Assistant U.S. Attorneys Mathew Andrews and Patrick Moroney are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the 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.
Leader of Sunset Trinitarios Responsible for Murdering Two Teenagers in 2013 and 2014 Convicted of Racketeering and MurderRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that on Friday, September 20, 2024, a jury found CARLOS RAMIREZ, a/k/a “Guerra” guilty of racketeering conspiracy, murder, and firearms-related charges. RAMIREZ was found guilty following a two-week trial before U.S. District Judge Jesse M. Furman and is scheduled to be sentenced on January 9, 2025.
U.S. Attorney Damian Williams said: “For more than a decade, the family members of Michael Beltre and Jordanny Correa have waited for justice. Their wait is now over. With its verdict, the jury has now held Carlos Ramirez, a/k/a “Guerra,” a leader of the Sunset Trinitarios, responsible for nearly a decade of drug trafficking, robberies, and violence, including the murder of these two young men, both teenagers at the time that they were shot to death. It does not matter how long ago their lives were lost to the scourge of gang violence in this city. I promise you that the career prosecutors of this Office and our law enforcement partners will never stop investigating and prosecuting these righteous cases. If any member of the public has information that they wish to share with us about any unsolved murder in this city, then we encourage you to come forward.”
According to the Indictment, public court filings, and the evidence presented at trial:
From 2010 to 2024, members of the Sunset Trinitarios, a violent drug trafficking organization and street gang founded in Sunset Park in Brooklyn, New York, committed a terrifying number of violent crimes, including multiple murders and attempted murders and numerous gunpoint robberies all across the metropolitan area. RAMIREZ was one of the members of the Sunset Trinitarios during this period, and he rose to multiple positions of leadership within the gang, both out on the street and when he was incarcerated in the custody of state and federal detention facilities in New York City. As a “devil soldier messenger” of the Sunset Trinitarios, which came to celebrate the murder of innocent victims and their purported delivery to the devil, RAMIREZ obtained two identical tattoos memorializing the two murders he committed on behalf of the gang.
On October 23, 2013, RAMIREZ participated in the murder of Michael Beltre, who was seventeen years old. Beltre was shot multiple times on the street in the Bronx after RAMIREZ struck him and held him for another gang member to shoot.
On November 2, 2014, RAMIREZ murdered Jordanny Correa, who was nineteen years old. RAMIREZ shot Correa multiple times at point-blank range inside an apartment in the Bronx.
On February 28, 2023, RAMIREZ attempted to murder a former leader of the Sunset Trinitarios inside the Metropolitan Detention Center in Brooklyn. RAMIREZ committed this attack because he believed that this former leader had previously supplied information to law enforcement. With the help of others, RAMIREZ slashed and stabbed the victim with a knife, causing severe injuries to the victim’s face and the rest of his body in multiple locations.
10 others of RAMIREZ’s co-conspirators and fellow members of the Sunset Trinitarios previously pled guilty and are awaiting sentencing or have been sentenced, receiving sentences to date that have ranged from multiple years through life in prison.
If you believe you have information related to RAMIREZ or the Sunset Trinitarios, please consider reporting using the following link: https://www.justice.gov/usao-sdny/report-crime.
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RAMIREZ, 29, of the Dominican Republic, was convicted of conspiracy to commit racketeering, murder in aid of racketeering, and the use of a firearm to commit murder. Each of the three offenses carries a maximum sentence of life in prison, and murder in aid of racketeering carries a mandatory sentence of life in prison.
The mandatory and maximum potential sentences in this case are prescribed by Congress and provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge
Mr. Williams praised the outstanding work of the Drug Enforcement Administration’s Drug Enforcement Task Force and the New York City Police Department, which also supported the prosecution through trial. Mr. Williams also thanked the Bureau of Prisons and the New York City Department of Correction for their assistance.
This case is being handled by the Office’s Violent and Organized Crime Unit. Assistant U.S. Attorneys Thomas John Wright, Brandon D. Harper, and Timothy Ly are in charge of the prosecution, with the assistance of Paralegal Specialists William Coleman and Kiersten Luger.
Former Partner of Investment Management Firm Sentenced to 30 Months in Prison for Two Fraud Schemes Totaling over $2.4 MillionRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that JOSHUA HENNER was sentenced Friday, September 20, 2024, to 30 months in prison by U.S. District Judge John G. Koeltl for running two separate fraud schemes that stole over $2.4 million from victims. HENNER previously pled guilty to one count of wire fraud before U.S. District Judge John G. Koeltl.
U.S. Attorney Damian Williams said: “Joshua Henner deceived victims into loaning him millions of dollars across not one, but two fraud schemes. Henner’s crimes ruined the lives of his victims: some have postponed retirement, others lost their life savings, while others have been forced to change professions or work multiple jobs to account for their significant financial losses. This sentence sends the message that those who defraud others will receive significant prison sentences.”
According to the allegations contained in the Indictment, the plea agreement, and other public filings and statements made in court:
From at least in or about March 2022 through at least in or about December 2022, HENNER ran two schemes that defrauded victims out of at least $2.4 million. In the first scheme, HENNER solicited and obtained funds from victims based on representations that he had been an angel investor in a start-up (the “Company”) and that he needed funds to purchase additional shares in the Company to maintain his investment position.
To induce victims to give him funds, HENNER routinely made materially false oral and written statements, including lies about his previous investment in the Company and his ownership interest in the Company. Without their knowledge or authorization, HENNER misappropriated his victims’ funds by, among other things, transferring the funds to himself and other individuals.
HENNER also used, without authorization, the name and email address of a lawyer purportedly involved in the investments to communicate via email with his victims and foster the illusion that he was using the funds that his victims lent him for their intended purposes.
In a second scheme, HENNER also induced at least six victims to lend him money to renovate an apartment that he did not own. To carry out this fraud, HENNER, among other things, informed victims that he had contracted with a renovations company and created a fraudulent email address with the real name of an employee of the renovation company. In truth and in fact, HENNER rented and did not own the apartment, HENNER was prohibited from renovating the apartment, and HENNER did not use the funds that his victims gave him to renovate the apartment.
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In addition to the prison term, HENNER, 37, of New York, New York, was sentenced to three years of supervised release and ordered to forfeit $2,452,480 and make restitution in an amount to be determined.
Mr. Williams praised the outstanding investigative work of the Federal Bureau of Investigation.
This case is being handled by the Office’s General Crimes Unit. Assistant U.S. Attorney Brandon C. Thompson is in charge of the prosecution.
Sean Combs Charged in Manhattan Federal Court with Sex Trafficking and Other Federal OffensesRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, and William S. Walker, the Acting Special Agent in Charge of the New York Field Office of Homeland Security Investigations (“HSI”), announced that SEAN COMBS, a/k/a “Puff Daddy,” a/k/a “P. Diddy,” a/k/a “PD,” a/k/a “Love,” was arrested last night and charged in a three count Indictment with racketeering conspiracy, sex trafficking, and transportation to engage in prostitution. The Indictment unsealed today alleges that between 2008 and the present, COMBS abused, threatened, and coerced women and others, and led a racketeering conspiracy that engaged in sex trafficking, forced labor, kidnapping, arson, bribery, and obstruction of justice, among other crimes. COMBS is expected to be presented in Manhattan federal court this afternoon before Magistrate Judge Robyn F. Tarnofsky.
U.S. Attorney Damian Williams said: “As alleged in the Indictment, for years, Sean Combs used the business empire he controlled to sexually abuse and exploit women, as well as to commit other acts of violence and obstruction of justice. Today, he is charged with racketeering and sex trafficking offenses. If you have been a victim of Combs’ alleged abuse – or if you know anything about his alleged crimes – we urge you to come forward. This investigation is far from over.”
HSI Acting Special Agent in Charge William S. Walker said: “Today, we shatter any false notion of impunity as we uncover the defendant's alleged pattern of manipulation, exploitation, and outright abuse. Make no mistake: we are here today only because of the unwavering strength of victims and witnesses who have already endured unspeakable hardships. I commend them for their courage and urge anyone who believes they are a victim of sex trafficking to contact HSI by email at [email protected], or via our mobile tip-line: 1-877-4-HSITIP.”
According to the Indictment unsealed today:[1]
From at least 2008 through the present, COMBS led a criminal enterprise that existed to facilitate his abuse and exploitation of women, to protect his reputation, and to conceal his conduct. As part of that criminal enterprise, COMBS, along with other members and associates of the enterprise, committed crimes including sex trafficking, forced labor, kidnapping, arson, bribery, and obstruction of justice.
Among other things, COMBS’ sexual abuse of women included causing them to engage in frequent, days-long sexual activity with male commercial sex workers, some of whom were transported over state lines. These events, which COMBS referred to as “Freak Offs,” were elaborate sex performances that COMBS arranged, directed, and often electronically recorded. To ensure participation in Freak Offs, COMBS used violence and intimidation, and leveraged his power over victims—power he obtained through obtaining and distributing narcotics to them, exploiting his financial support to them and threatening to cut off the same, and controlling their careers. COMBS also threatened his victims, including by threatening to expose the embarrassing and sensitive recordings he made of Freak Offs if the women did not comply with his demands.
COMBS’ efforts to control women included repeated physical abuse. COMBS assaulted women by, among other things, striking, punching, dragging, throwing objects at, and kicking them. COMBS similarly assaulted witnesses to his abuse. These assaults often resulted in injuries to the victims, which took days or weeks to heal.
To commit these crimes, COMBS relied on his power as the leader of a multi-faceted business empire. Employees of COMBS' businesses—including high ranking supervisors, security staff, personal assistants, and household staff—acted as COMBS’ intermediaries to, among other things, arrange travel and hotel rooms; stock the hotel rooms for COMBS’ commercial sex activity; contact or locate women and other individuals whom he targeted for abuse; and conceal and cover up the abuse. This criminal concealment included efforts to prevent law enforcement from learning about his abuse.
If you believe you are victim of a crime perpetrated by Sean Combs, please contact HSI at [email protected] or via their mobile tip-line at 1-877-4-HSITIP, and reference this case.
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COMBS, 54, of Miami, Florida, is charged with one count of racketeering conspiracy, which carries a maximum sentence of life in prison; one count of sex trafficking by force, fraud, or coercion, which carries a maximum sentence of life in prison and a mandatory minimum sentence of 15 years in prison; and one count of transportation for purposes of prostitution, which carries a maximum sentence of 10 years in prison.
The statutory maximum and mandatory penalties 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 HSI and the Southern District of New York Special Agents, Digital Forensic Unit, and the Complex Analytical and Social Media Enhancement Team at the New York/New Jersey High Intensity Drug Trafficking Area.
This case is being handled by the Office’s Civil Rights Unit in the Criminal Division. Assistant U.S. Attorneys Meredith Foster, Emily A. Johnson, Christy Slavik, Madison Reddick Smyser and Mitzi Steiner.
The charges contained in the Indictment are merely accusations. 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 herein, constitutes only allegations, and every fact described therein should be treated as an allegation.
President of Hair Testing Company Sentenced to 41 Months in Prison for Defrauding over 88,000 Customers in Allergy Testing ScamRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that KYLE TSUI was sentenced today to 41 months in prison by U.S. District Judge Kenneth M. Karas for conducting a fraud scheme that resulted in sales of approximately $5.9 million worth of fabricated allergy and sensitivity tests to tens of thousands of customers. TSUI previously pled guilty to wire fraud and mail fraud before U.S. Magistrate Judge Judith C. McCarthy, following his extradition from Spain in November 2023. As part of his guilty plea, TSUI was ordered to forfeit the fraudulent proceeds he received from the scheme—more than $4.1 million—which TSUI paid in full in advance of sentencing and which may now be used to compensate victims of the scheme.
U.S. Attorney Damian Williams said: “Kyle Tsui defrauded tens of thousands of innocent victims, whose health was put at risk with false allergy and sensitivity testing results. Tsui’s company advertised ‘highly-rated’ allergy and sensitivity testing services but didn’t even attempt to test the samples his paying customers sent in, instead directing others to throw the samples in the garbage. Today’s sentence—and the recovery of all the money Tsui stole from victims of the scheme—sends a message that brazen schemes like Tsui’s do not pay.”
According to the allegations contained in the Indictment, court filings, and statements made in court, including during TSUI’s plea proceeding and sentencing:
From September 2018 through April 2019, TSUI orchestrated a scheme to defraud customers of his company, the “Allergy Testing Company,” by purporting to sell food and environmental sensitivity testing services that TSUI knew were not, in fact, being performed. In total, TSUI sold fabricated tests worth approximately $5.9 million to more than 88,000 victims through an online marketplace.
TSUI’s company promoted its “[h]ighly-rated, top selling sensitivity and intolerance test” that “determines how your body responds to 800 different food and environmental items” with just “a small hair sample.” But rather than actually test the hair samples as customers were promised, TSUI directed that the hair samples be discarded in the trash without any laboratory analysis. Customers then received fabricated test results purporting to identify certain foods and environmental factors that were “safe” for them and others that the customers were supposedly “sensitive” to and should avoid.
If you believe you are a victim of the Allergy Testing Company fraud, updated information regarding the case and victims’ rights, as well as contact information for the victim witness coordinator, is available here.
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In addition to the prison term, TSUI, 41, of Ontario, Canada, was sentenced to one year of supervised release and ordered to forfeit $4,165,884.70.
Mr. Williams praised the outstanding work of the U.S. Postal Inspection Service. Mr. Williams also thanked the Hyde Park Police Department, the New York State Troopers, the Toronto Police Service, the Department of Justice’s Office of International Affairs, the Canadian Anti-Fraud Centre, and the Government of Spain for their assistance in the investigation.
The case is being prosecuted by the Office’s White Plains Division. Assistant U.S. Attorneys Qais Ghafary and Benjamin Levander are in charge of the prosecution, which was previously handled by former Assistant U.S. Attorney Daniel Loss.
Bronx Former Attorney Pleads Guilty to Large-Scale Immigration FraudRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced today that KOFI AMANKWAA, a Bronx-based former immigration attorney, pled guilty to immigration fraud in connection with his supervision of a multi-year scheme to file fraudulent immigration documents under the Violence Against Women Act (“VAWA”). AMANKWAA pled guilty today before U.S. District Judge Katherine Polk Failla.
U.S. Attorney Damian Williams said: “For years, Kofi Amankwaa oversaw a massive immigration fraud scheme, filing thousands of immigration documents falsely alleging that his clients were victims of abuse by their children or other family members. Amankwaa’s actions undermined our U.S. immigration system, exploited VAWA — a law that allows noncitizen victims of domestic abuse a path to lawful permanent residence status — and victimized vulnerable clients in the process. Today’s guilty plea highlights this Office’s dedication to holding accountable those who abuse the trust placed in them as attorneys and fraudulently use our immigration system as a tool for their own financial gain.”
According to the allegations in the Information, public filings, and statements made in public court proceedings:
From September 2016 through November 2023, AMANKWAA and others at his direction met with clients and instructed them to sign fraudulent Form I-360 VAWA Petitions falsely stating that the clients were abused by their U.S. citizen children. AMANKWAA also signed the petitions, under penalty of perjury, as the attorney preparer.
AMANKWAA used the filing of the fraudulent Form I-360 VAWA Petitions, among other filings, as a basis to request for his clients’ advance parole travel documents — documents that enable individuals without legal status in the U.S. to travel abroad temporarily and return. AMANKWAA then directed his clients, upon obtaining the advance parole travel documents, to travel abroad and return to the U.S. Last, AMANKWAA used the fraudulently procured advance parole as a basis for his clients to apply for lawful permanent resident status.
AMANKWAA carried out this illegal scheme knowing that his clients had not, in fact, been abused by their children or without ever asking whether any such abuse occurred. Moreover, AMANKWAA was often unsuccessful in obtaining lawful permanent resident status for his clients because the clients’ immigration applications were denied on the basis of fraud, among other reasons. AMANKWAA typically charged his clients between $3,000 and $6,000 for his services, plus administrative fees.
In November 2023, following numerous complaints by clients regarding the fraudulent abuse allegations, AMANKWAA’s license to practice law in the State of New York was suspended, and in August 2024, AMANKWAA was disbarred.
As part of today’s plea, AMANKWAA has agreed to forfeit $13,389,000 and pay $16,503,425 in restitution to his victims.
If you believe you or your family member is a victim of VAWA fraud perpetrated by AMANKWAA, please contact [email protected].
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AMANKWAA, 70, of South River, New Jersey, pled guilty to one count of immigration fraud, which carries a maximum sentence of 10 years in prison.
The maximum potential sentence is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.
Mr. Williams praised the outstanding investigative work of the Newark Field Office of Homeland Security Investigations. Mr. Williams also thanked the U.S. Citizenship and Immigration Services’ Office of Fraud Detection and National Security for their support in this investigation.
This case is being handled by the Office’s General Crimes Unit. Assistant U.S. Attorney Adam Z. Margulies is in charge of the prosecution.
Two Former High-Ranking FDNY Officials Charged with Bribery, Corruption, and False Statements OffensesRead the Press Release
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”), 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 ANTHONY SACCAVINO and BRIAN CORDASCO, two former chiefs of the New York City Fire Department (“FDNY”) Bureau of Fire Prevention (“BFP”) with bribery, corruption, and false statements offenses. SACCAVINO and CORDASCO were arrested this morning and will be presented today before U.S. Magistrate Judge Robyn F. Tarnofsky. The case is assigned to U.S. District Judge Lewis J. Liman.
U.S. Attorney Damian Williams said: “As alleged, Anthony Saccavino and Brian Cordasco abused their authority as chiefs of the FDNY’s Bureau of Fire Prevention to line their pockets in a pay-to-play bribery scheme. By allegedly selling priority access to the BFP’s services, which are vital to preventing New York City businesses and homes from fire-related incidents, Saccavino and Cordasco undermined the public trust and put their own greed above the interests of the taxpayers they swore to serve. This Office and our partners at the DOI and FBI will continue to ensure that City officials who put themselves over the public interest will be held accountable.”
DOI Commissioner Jocelyn E. Strauber said: “When senior City officials provide special treatment in exchange for money, they abuse their authority, fail to serve New Yorkers fairly and equitably, and undermine confidence in the integrity of City government. As alleged, two senior leaders of the Bureau of Fire Prevention, responsible for fire safety approvals and inspections, and facing a significant backlog, fast-tracked dozens of projects in exchange for tens of thousands of dollars in bribe payments. I thank the FDNY for referring allegations of possible criminal conduct to DOI, prompting this investigation, and the U.S. Attorney’s Office for the Southern District of New York and the FBI for working with us to pursue this important case.”
FBI Assistant Director in Charge James E. Dennehy said: “The FDNY officials charged today allegedly took bribes to expedite the inspection process, undermining the fairness and integrity that are fundamental to our system. By doing so, they not only compromised public safety but also eroded the public’s trust in those who are sworn to protect us. Additionally, they damaged the trust of the overwhelming majority of New York City firefighters who are honest, hardworking public servants who dedicate their lives to protecting our communities, often putting themselves in harm's way to ensure our safety. These men and women embody the highest standards of integrity and service. The actions of a few should not overshadow the dedication and bravery of the many who wear the badge with pride and honor.”
As alleged in the Indictment:[1]
SACCAVINO and CORDASCO repeatedly abused their positions of trust as high-ranking officials in the FDNY from at least in or about 2021 through in or about 2023 by soliciting and accepting tens of thousands of dollars in bribe payments in exchange for providing preferential treatment to certain individuals and companies with matters pending before the BFP.
SACCAVINO and CORDASCO were at relevant times Chiefs of the BFP, which is responsible for overseeing and approving the installation of fire safety and suppression systems in commercial and residential buildings in New York City. The BFP ensures that these systems comply with fire safety regulations by, among other things, reviewing and approving design plans and conducting on-site inspections of installed systems. In many cases, BFP approvals are required before a building can be occupied or opened to the public. As Chiefs of Fire Prevention—and, ultimately, the top two ranking members of the BFP—during the relevant period, SACCAVINO and CORDASCO supervised the BFP personnel who conducted these plan reviews and inspections. For nearly two years, SACCAVINO and CORDASCO misused their authority as Chiefs for their private financial gain.
Specifically, SACCAVINO and CORDASCO solicited and accepted bribes from a retired FDNY firefighter, Henry Santiago Jr., who ran an unsanctioned “expediting” business (the “Santiago Company”). Acting in large part at the direction of SACCAVINO and CORDASCO, Santiago promised his customers that he could “expedite”—or fast-track—their plan reviews and inspection dates with the BFP, in exchange for payment. Santiago made this claim even though the BFP generally addressed applications on a first-come, first-served basis, and notwithstanding the significant wait times that BFP applicants generally faced during the relevant period.
Behind the scenes, after a customer had hired the Santiago Company, SACCAVINO and CORDASCO directed BFP personnel to prioritize that customer’s plan review or inspection request in exchange for bribe payments from Santiago and/or the Santiago Company. In carrying out their official duties as Chiefs, SACCAVINO and CORDASCO justified the priority requests within the FDNY by lying to their BFP subordinates about the basis for their directions to prioritize certain projects over others. Santiago was paid by the customers of his company for this “expediting” and, in turn, Santiago made bribe payments to SACCAVINO and CORDASCO to obtain preferential treatment by the BFP for the Santiago Company’s customers.
Collectively, SACCAVINO, CORDASCO, and Santiago received more than $190,000 in payments in connection with this scheme.
As part of the investigation into this bribery scheme, in or about February 2024, SACCAVINO and CORDASCO each participated in voluntary interviews with the FBI. During those interviews, SACCAVINO and CORDASCO each repeatedly made false statements in an effort to conceal their involvement in the bribery scheme.
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If you believe you have information related to bribery, fraud, or any other illegal conduct by FDNY or BFP employees, please contact [email protected] or (212) 825-2828. If you were involved in such conduct, please consider self-disclosing through the SDNY Whistleblower Pilot Program at [email protected].
SACCAVINO, 59, of New York, New York, and CORDASCO, 49, of Staten Island, New York, are each charged with one count of conspiracy to solicit and receive a bribe, which carries a maximum sentence of five years in prison; one count of solicitation and receipt of a bribe, which carries a maximum sentence of 10 years in prison; one count of honest services wire fraud, which carries a maximum sentence of 20 years in prison; one count of conspiracy to commit honest services wire fraud, which carries a maximum sentence of 20 years in prison; and one count of making false statements, which carries a maximum sentence of five years in prison.
Santiago, 46, of Staten Island, New York, pled guilty on September 10, 2024, to one count of conspiracy to commit bribery, which carries a maximum sentence of five years in prison; one count of bribery, which carries a maximum sentence of 10 years in prison; one count of conspiracy to commit honest services wire fraud, which carries a maximum sentence of 20 years in prison; and one count of honest services wire fraud, which carries a maximum sentence of 20 years in prison. His case is assigned to U.S. District Judge Andrew L. Carter. Under the terms of his plea agreement, Santiago agreed to cooperate with the Government.
The statutory maximum penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Williams praised the outstanding work of the DOI and FBI.
The prosecution of this case is being handled by the Office’s Public Corruption Unit. Assistant U.S. Attorneys Jessica Greenwood, Matthew King, and Daniel H. Wolf are in charge of the prosecution.
The charges contained in the 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 Indictment and the descriptions of the Indictment set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Former CEO of Kubient, Inc. Charged and Pleads Guilty in Connection with Accounting Fraud SchemeRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, and Daniel B. Brubaker, the Inspector in Charge of the New York Division of the U.S. Postal Inspection Service (“USPIS”), announced today the filing of an Information charging PAUL ROBERTS, the founder, former Chief Executive Officer, and former Chairman of the Board of Directors of Kubient, Inc, a digital advertising technology company, with securities fraud. The charge results from ROBERTS’s execution of a scheme to defraud investors and auditors of Kubient, during which he caused Kubient to improperly recognize more than $1.3 million in fraudulent revenue in Kubient’s financial statements at the time of Kubient’s initial public offering and made material misrepresentations about the efficacy of Kubient’s proprietary fraud detection tool, Kubient Artificial Intelligence (“KAI”). ROBERTS plead guilty today before U.S. District Judge Jennifer L. Rochon and is scheduled to be sentenced on December 18, 2024.
U.S. Attorney Damian Williams said: “Paul Roberts, the founder and former CEO of Kubient, inflated his company’s revenue and lied about the performance of one of its signature products, an AI-powered tool that was supposed to detect ad fraud in the digital advertising industry. To carry out his scheme, Roberts had fake documents created to mislead the independent certified public accountants engaged to audit Kubient’s financial statements. Today’s charge and guilty plea sends a message that this Office is committed to holding corporate executives accountable when they resort to fraud.”
USPIS Inspector in Charge Daniel B. Brubaker said: “Mr. Roberts was caught lying about Kubient’s AI fraud detection tool. And in this case, the only thing that was detected as fraudulent was what Mr. Roberts told investors to improperly bolster his company’s revenue during Kubient’s IPO. This is our promise to the American public: Postal Inspectors along with our law enforcement partners will continue to protect investors from falling victim to greedy individuals.”
As alleged in the Information:
In or about May 2017, ROBERTS founded Kubient, Inc. (“Kubient”), a digital advertising technology company headquartered in New York, New York. From in or about August 2020 to in or about November 2023, Kubient’s shares were publicly traded on the Nasdaq stock exchange under the ticker “KBNT.” At various times relevant to the Information, ROBERTS was Kubient’s Chief Executive Officer, Chairman of the Board of Directors, Interim Chief Executive Officer, President, and Chief Strategy Officer.
From at least in or about October 2019 through at least in or about March 2021, ROBERTS executed an accounting fraud scheme at Kubient. During that time, ROBERTS caused Kubient to improperly recognize more than $1.3 million in fraudulent revenue in Kubient’s financial statements (the “Fraudulent Revenue”). The Fraudulent Revenue was over 94% of Kubient’s reported revenue for 2020 at the time of its initial public offering (“IPO”) in or about August 2020, over 74% of its reported revenue for 2020 at the time of its secondary public offering in or about December 2020, and approximately 45% of Kubient’s reported revenue for all of 2020, as reported in Kubient’s 2020 annual financial statement filed with the U.S. Securities and Exchange Commission (the “SEC”) on SEC Form 10-K in or about March 2021. With his scheme, ROBERTS misled Kubient’s auditors and deceived the investing public about Kubient’s financial condition.
At the core of the accounting fraud scheme by ROBERTS was a fraudulent $1.3 million transaction that ROBERTS arranged between Kubient and another digital advertising technology company (“Company-1”) and one of Company-1’s affiliates (the “Company-1 Affiliate”). In a set of three contracts negotiated and executed together in or about October 2019, Kubient and Company-1 agreed to provide certain services to the other for nearly identical fees. Under the terms of two contracts, Kubient agreed to use its proprietary fraud detection tool Kubient Artificial Intelligence (“KAI”) to scan data provided by Company-1 and the Company-1 Affiliate for instances of digital ad fraud and then deliver the results of KAI’s findings to Company-1 and the Company-1 Affiliate (the “KAI Agreements” of the “KAI Transactions”). At the same time, pursuant to a Data Services Agreement, Company-1 agreed to sell Kubient other data and provide certain data-related services.
From in or about January 2020 through in or about November 2020, Kubient paid Company-1 $1,300,336 and Company-1 paid Kubient $1,300,338.03 (which Kubient fraudulently recognized as revenue), but neither company ever provided any of the services they agreed to provide to the other company under the contracts. For example, with respect to the KAI Transactions, Company-1 and the Company-1 Affiliate never sent Kubient any data to be scanned by KAI, Kubient never scanned any Company-1 or Company-1 Affiliate data with KAI, and Kubient never delivered any results or reports to Company-1 or the Company-1 Affiliate with any findings by KAI.
To conceal his fraudulent scheme, ROBERTS directed Kubient employees to generate fake KAI reports and misled them about how he intended to use such reports. Rather than receive data from Company-1 or the Company-1 Affiliate to be scanned by KAI, ROBERTS had Kubient employees create “sample” KAI reports based, at first, on Kubient’s own data and then eventually based on made-up metrics and no underlying data at all. ROBERTS told Kubient employees he needed these “samples” to demonstrate for bankers and potential investors the kind of reporting of which KAI was capable. In fact, ROBERTS needed the “sample” KAI reports to mislead Kubient’s independent certified public accountants (the “Audit Firm”) into believing that Kubient had performed its contractual obligations to Company-1 and the Company-1 Affiliate under the KAI Agreements when, in fact, Kubient had not, so that Kubient could recognize the associated revenue in its financial statements.
ROBERTS repeatedly made material misrepresentations in SEC filings and in management representation letters submitted to the Audit Firm relating to Kubient’s KAI revenue recognition. Contrary to representations ROBERTS made in these filings and letters, Kubient did not perform its obligations to Company-1 and the Company-1 Affiliate under the KAI Agreements and, consequently, none of the Fraudulent Revenue should have been recognized as revenue in Kubient’s financial statements.
In addition, ROBERTS repeatedly made material misrepresentations in SEC filings about the efficacy of KAI in identifying and preventing digital ad fraud, including in connection with Kubient’s initial and secondary public offerings when Kubient was touting KAI as one of the company’s premier products that would differentiate it from its competitors. For example, ROBERTS personally added language to Kubient’s SEC Form S-1 registration statements that ROBERTS signed and that Kubient filed in or about July, August, and December 2020, stating that, in 2020, KAI provided “two large enterprise clients” [i.e., Company-1 and the Company-1 Affiliate] “the ability to prevent the purchase of non-human or fraudulent advertising traffic” and that “KAI was identifying and preventing approximately 300% more digital ad fraud then [sic] the client’s current partners.” ROBERTS made these statements knowing that they were false. More specifically, ROBERTS knew that Kubient never received any data from Company-1 or the Company-1 Affiliate to scan with KAI pursuant to the KAI Agreements, that Kubient never scanned any of Company-1’s or the Company-1 Affiliate’s data with KAI, and that Kubient never delivered any results or reports to Company-1 or the Company-1 Affiliate with any findings by KAI, let alone that KAI was not “identifying and preventing approximately 300% more digital ad fraud” than Company-1’s and the Company-1 Affiliate’s “current partners.”
Fueled by the misrepresentations about Kubient’s KAI revenue recognition and the efficacy of KAI in identifying and preventing digital ad fraud that ROBERTS made in Kubient’s SEC filings and elsewhere, Kubient raised more than $12.5 million in its IPO in or about August 2020, resulting in its shares being publicly traded on the Nasdaq stock exchange, and more than $20 million in its secondary public offering in or about December 2020. Kubient’s IPO and its secondary public offering would not have been possible without ROBERTS’s fraudulent misrepresentations about KAI and the KAI Transactions.
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ROBERTS, 48, of Melville, NY, is charged with one count of securities fraud, which carries a maximum sentence of 20 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 defendant will be determined by a judge.
Mr. Williams praised the outstanding work of the USPIS. Mr. Williams also thanked the SEC, which filed a civil action against ROBERTS after he pleaded guilty, 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 Justin V. Rodriguez and Alex Rossmiller are in charge of the prosecution.
Armed Security Guard at Manhattan Federal Building Sentenced to Five Years in Prison in Connection with Sexual Assault of Asylum SeekerRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that JIMMY SOLANO-ARIAS, a former armed security guard at the Jacob K. Javits Federal Office Building located at 26 Federal Plaza in Manhattan, was sentenced today to five years in prison by Judge Paul G. Gardephe in connection with SOLANO-ARIAS’s sexual assault of an asylum seeker (the “Victim”) on May 4, 2023. On April 10, 2024, SOLANO-ARIAS pled guilty to lying to federal law enforcement agents following his sexual abuse of the Victim. The sentencing today followed SOLANO-ARIAS’s guilty plea before U.S. Magistrate Judge Sarah Netburn.
U.S. Attorney Damian Williams said: “Jimmy Solano-Arias used his position as an armed security officer at a federal building to sexually assault a vulnerable asylum seeker. In so doing, Solano-Arias abused a person he was charged with protecting, and then lied to cover up his crime. Today’s sentencing demonstrates that those who exploit their position of public trust will be held accountable for their conduct.”
According to the Indictment, Superseding Information, other public court documents, and statements made during court proceedings:
On May 4, 2023, SOLANO-ARIAS was employed as a security guard by a company that contracts with the Federal Protective Service of the Department of Homeland Security to provide armed security services at 26 Federal Plaza, New York, New York. On that date, SOLANO-ARIAS was on duty, wore a black and gray security guard uniform, and carried his employer-issued firearm.
Early in the morning on May 4, 2023, the Victim went to 26 Federal Plaza for the purpose of submitting an asylum application. Once there, SOLANO-ARIAS offered to assist the Victim with his asylum paperwork. Instead of providing assistance, however, SOLANO-ARIAS led the Victim through non-public areas of 26 Federal Plaza, eventually secluding the Victim in a locked office on the second floor. Inside the locked office, SOLANO-ARIAS demanded that the Victim perform oral sex on SOLANO-ARIAS. When the Victim attempted to resist SOLANO-ARIAS’s demands, SOLANO-ARIAS reached to the company-issued firearm on his person. Fearing that SOLANO-ARIAS would harm the Victim, the Victim performed oral sex on SOLANO-ARIAS, which caused physical pain and injury to the Victim. Following the assault, when the Victim was able to leave the office, the Victim immediately reported the sexual assault to law enforcement.
The following morning, when SOLANO-ARIAS arrived at 26 Federal Plaza for his shift, law enforcement agents with the Federal Bureau of Investigation (“FBI”) approached SOLANO-ARIAS and asked to speak with him. SOLANO-ARIAS agreed to speak with the federal agents. During the interview that followed, SOLANO-ARIAS lied to the federal agents about his sexual abuse of the Victim, initially disclaiming entirely that he had engaged in a sexual act with the Victim and then falsely claiming that the sexual act was consensual when it was not. SOLANO-ARIAS was arrested after the interview.
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In addition to the prison term, SOLANO-ARIAS, 45, of the Bronx, New York, was sentenced to three years of supervised release.
Mr. Williams praised the outstanding investigative work of the FBI.
The prosecution of this case is being handled by the Office’s Civil Rights Unit in the Criminal Division. Assistant U.S. Attorneys Elizabeth Espinosa and Mitzi Steiner are in charge of the prosecution.
Texas Man Sentenced to 10 Years in Prison for over $16 Million Consumer Electronics Fraud ConspiracyRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that OLUSEUN MARTINS OMOLE, a/k/a “Seun Omole,” was sentenced today to 10 years in prison by U.S. District Judge Jesse M. Furman for participating in a large-scale fraud conspiracy involving more than $16 million in consumer electronics and other goods that were fraudulently obtained from thousands of victims in the U.S. and elsewhere. OMOLE previously pled guilty to one count of conspiracy to commit wire fraud before U.S. Magistrate Judge Katharine H. Parker.
U.S. Attorney Damian Williams said: “For approximately five years, Oluseun Martins Omole used his satellite communications business as a front to receive more than 23,000 laptops, tablets, smartphones, smartwatches, and other consumer goods. These items—worth more than $16 million—were bought and sent by thousands of victims nationwide who were defrauded by Omole and his associates. Omole’s fraud devastated victims: some had to take out loans, others fell into debt or declared bankruptcy, and some even attempted suicide. Today’s sentence sends the message that a lengthy prison sentence will await those who participate in these destructive fraud schemes.”
According to the allegations contained in the Indictment and Complaint, the plea agreement, and other public filings and statements made in court:
From at least in or about February 2018 through at least in or about March 2023, OMOLE participated in a criminal enterprise (the “Enterprise”) that scammed thousands of victims in the U.S. and elsewhere of more than $16 million in consumer electronics, including smartphones, smartwatches, laptops, and tablets, among other items. The scams included romance scams, in which Enterprise members sent electronic communications to victims pretending to be interested in a romantic relationship, gained the victim’s trust and affection, and took advantage of that goodwill to induce the victim into sending consumer electronics and other money or property to OMOLE; online marketplace scams, in which Enterprise members contacted victims who were selling consumer electronics on online marketplaces, falsely represented to the victim that the Enterprise members had bought and paid for the consumer electronics, and instructed the victim to send the consumer electronics to OMOLE; and employment scams, in which Enterprise members posted phony job positions online, falsely informed unwitting victims that they were hired for the non-existent positions, and instructing the victim to send electronics to OMOLE under the guise that those electronics were needed for the non-existent position (together, the “Fraudulent Electronics Scams”).
During the relevant time period, OMOLE owned and operated a Texas-based business corporation named Tobylink Impressions, Inc. (“Tobylink”), which purported to be a distributor, re-seller, and supplier of satellite communications equipment. In reality, however, Tobylink was a front through which OMOLE received more than 23,000 fraudulently obtained laptops, tablets, smartphones, smartwatches, and other consumer goods sent by thousands of victims nationwide, which OMOLE then repackaged and shipped in bulk to other members of the Enterprise located in Nigeria. From February 2018 to October 2021, OMOLE received items from victims at a storage unit in Richmond, Texas, and from August 2021 to March 2023, OMOLE received items from victims at a warehouse in Sugar Land, Texas.
In total, OMOLE charged his co-conspirators at least approximately $623,894.50 in duty fees and weight-based shipping fees in exchange for receiving and shipping more than $16 million in fraudulently obtained consumer electronics and other consumer goods. OMOLE and his co‑conspirators’ actions victimized thousands of innocent people and caused substantial financial and emotional harm to those victims. For example, among the victims were: a victim who lost more than $350,000 and had to take out a $200,000 loan on her house that she was only $6,000 away from paying off; a victim who lost more than $75,000 and needed to file for bankruptcy; a victim who incurred more than $18,000 in credit card debt, had his credit score negatively affected, began suffering health issues, and considered committing suicide; and a victim who lost more than $220,000, had her cats taken away by county authorities due to the financial harm, and attempted suicide on two occasions.
If you believe you are a victim of the Fraudulent Electronics Scams and that you may be entitled to restitution, you may visit the following website: http://fbi.gov/TobylinkFraudVictims, or contact the following email address: [email protected]. Any responses should be received by no later than December 1, 2024.
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In addition to the prison term, OMOLE, 58, of Sugar Land, Texas, was sentenced to three years of supervised release, ordered to forfeit $623,894.50 and various consumer electronics and other goods seized by law enforcement, and ordered to make restitution in an amount to be determined.
Mr. Williams praised the outstanding investigative work of the Federal Bureau of Investigation. Mr. Williams also thanked Homeland Security Investigations for its assistance with the investigation.
The prosecution of this case is being handled by the Office’s General Crimes Unit. Assistant U.S. Attorney Jerry J. Fang is in charge of the prosecution.
Owner of Telemarketing Call Center Business Pleads Guilty to Multi-Year Scheme to Defraud PAC DonorsRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that RICHARD ZEITLIN, the owner of a telemarketing call center business, pled guilty today to conspiracy to commit wire fraud in connection with his participation in a scheme to use his call centers to defraud donors of certain political action committees (“PACs”) through false and misleading statements. ZEITLIN pled guilty before U.S. District Judge Lewis A. Kaplan.
U.S. Attorney Damian Williams said: “Richard Zeitlin used his telemarketing business to deceive donors into believing they were contributing to charitable causes when, in reality, their money was diverted to political action committees. Zeitlin’s fraudulent actions not only undermined the trust of donors but also exploited their goodwill for personal gain. Today’s announcement highlights this Office’s dedication to holding accountable those who misuse charitable and political organizations to defraud and mislead the public.”
According to the allegations in the Indictment, court filings, and statements made in Court:
PACs are entities registered with the Federal Election Commission that may be tax-exempt and collect money to advocate on behalf of or against certain causes and political candidates. By contrast, charities, unlike PACs, typically provide direct services to communities or causes.
From at least in or about 2017 up to and including in or about 2020, ZEITLIN used his telemarketing call center business and various associated entities to defraud numerous donors by providing misleading and false information about how the donors’ money would be spent and the nature of the organizations to which they were giving. Specifically, ZEITLIN directed his employees to alter the call scripts used when calling potential donors on behalf of certain PACs in order to mislead potential donors into believing that they would be giving to a direct-services organization (i.e., a charity), rather than to a political advocacy organization (i.e., a PAC). ZEITLIN directed that these lies, misleading statements, and misrepresentations be made so that donors would be more likely to give money, thereby increasing the funds raised and profits for his businesses – which typically received approximately 90% of the funds donated. In some instances, Zeitlin’s businesses retained 100% of the funds donated with none of the money going to the causes described in telemarketing calls to donors. When one PAC treasurer confronted ZEITLIN with complaints from donors that solicitation calls falsely represented a PAC as a charity, ZEITLIN falsely denied that the calls were being made, acknowledged that such calls would be inappropriate, and refused to give the treasurer any call recordings that would have revealed his fraud. In or about May 2022, after learning that ZEITLIN and his businesses were under federal investigation, ZEITLIN directed his employees to delete electronic messages relating to his businesses.
If you believe you are a victim of fraud perpetrated by ZEITLIN, please contact [email protected] or the Federal Bureau of Investigation (“FBI”) at 1-800-CALL-FBI or tips.fbi.gov, and find more information here: https://www.justice.gov/usao-sdny/united-states-v-richard-zeitlin.
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ZEITLIN, 54, of Las Vegas, Nevada, pled guilty to one count of conspiracy to commit wire fraud in connection with telemarketing, which carries a maximum sentence of 25 years in prison.
The maximum potential sentence is prescribed by Congress and provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge. ZEITLIN is scheduled to be sentenced by Judge Kaplan on December 10, 2024.
Mr. Williams praised the outstanding investigative work of the FBI.
This case is being handled by the Office’s Public Corruption Unit. Assistant U.S. Attorneys Jane Kim, Emily Deininger, and Rebecca T. Dell are in charge of the prosecution.
Former Bronx Public Charter School Teacher Sentenced to 30 Years in Prison for Sexual Abuse of Five Former StudentsRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced today that JESUS CONCEPCION was sentenced to 30 years in prison by U.S. District Judge Loretta A. Preska in connection with his sexual abuse of five minor victims who had been his students. CONCEPCION previously pled guilty to five counts of child enticement, four counts of transportation of a minor with intent to engage in illegal sexual activity, and one count of travel with intent to engage in illegal sexual activity with a minor.
U.S. Attorney Damian Williams said: “Today, Jesus Concepcion was sentenced to decades in prison for his horrific exploitation of children placed into his care as students. The victims of these crimes have waited almost twenty years for Concepcion to be held accountable for the devastating harm and trauma he inflicted on them and their families. Today’s sentencing is a reminder that it is never too late for justice to be served and that the Southern District of New York will work tirelessly to protect children from abuse and exploitation.”
According to the Superseding Indictment and statements made in court and public filings:
CONCEPCION was a music teacher and orchestra instructor at a public charter middle school located in the Bronx, New York (“School-1”) from in or about 2000 up to and including in or about 2007. During that same period, CONCEPCION abused his position as a teacher to induce and attempt to induce five of his students (“Minor Victim-1,” “Minor Victim-2,” “Minor Victim-3,” “Minor Victim-4,” and “Minor Victim-5,” and together the “Minor Victims”) to engage in sexual acts. The Minor Victims were as young as 12 years old at the time of the abuse.
To carry out his sexual abuse of the Minor Victims, CONCEPCION singled out the Minor Victims for personal attention; he gave them money, clothing, jewelry, and other gifts, and he provided certain Minor Victims with alcohol to facilitate the abuse. He persuaded the Minor Victims to believe that they were in romantic relationships with him and provided certain Minor Victims with cellphones so that he could communicate with them to arrange sexual encounters.
CONCEPCION engaged in sexual acts including, oral and vaginal sex, with Minor Victim-1, Minor Victim-2, Minor Victim-3, and Minor Victim-4 in various locations on multiple occasions, including in School-1’s music room, in the back room of School-1’s auditorium, in his car, at motels, and at his residences. On numerous occasions, CONCEPCION brought Minor Victims from School-1 or other locations in the Bronx to motels in New Jersey to sexually abuse them. On at least one occasion, after Minor Victim-1 graduated from middle school, CONCEPCION traveled to Minor Victim-1’s high school in Connecticut to have sexual intercourse with her. CONCEPCION also paid, on multiple occasions, for Minor Victim-2 to travel from her high school in Pennsylvania to visit him in New York, where he had sexual intercourse with her. To continue his abuse, CONCEPCION threatened to physically harm Minor Victim-3 and her family if she told anyone about his sexual abuse of her and her younger sister, Minor Victim-4.
CONCEPCION similarly pursued Minor Victim-5 and sent hundreds of text messages over the course of several months to Minor Victim-5, who was then 13 years old, leading her to believe that they were in a romantic relationship. CONCEPCION arranged to meet Minor Victim-5 during school hours at School-1 and kissed Minor Victim-5 on the mouth. The abuse stopped only after Minor Victim-5’s parents discovered CONCEPCION’s communications and reported him.
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In addition to the prison term, CONCEPCION, 51, of Simpsonville, South Carolina, was sentenced to 10 years of supervised release and ordered to pay a total of $1000 in assessments and restitution in an amount to be determined.
Mr. Williams praised the efforts of the Federal Bureau of Investigation (“FBI”) and the New York City Police Department (“NYPD”) for their outstanding work in this matter, particularly the FBI-NYPD New York Child Exploitation and Human Trafficking Task Force.
This case is being handled by the Office’s General Crimes Unit. Assistant U.S. Attorneys Camille L. Fletcher, Alexandra S. Messiter, and Jacqueline Kelly are in charge of the prosecution.
Four Gang Members Charged in 2022 Armed Robbery and Carjacking SpreeRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, and Edward A. Caban, the Commissioner of the New York City Police Department (“NYPD”), announced today the unsealing of a nine-count indictment charging four individuals—KELVIN FERNANDEZ, DEIVID PEREZ, a/k/a “Bujia,” JUAN LOPEZ, a/k/a “Secreto,” and MOISES HERNANDEZ DE LA CRUZ, a/k/a “Flaco”—with several federal crimes, including robbery, carjacking, and firearms offenses stemming from their roles in the Shooting Boys gang. The defendants were arrested this morning and will be presented today before U.S. Magistrate Judge Stewart D. Aaron in Manhattan federal court. The case is assigned to U.S. District Judge George B. Daniels.
U.S. Attorney Damian Williams said: “As alleged, the defendants went on a crime spree in Manhattan and the Bronx. Their alleged violent robberies and car thefts—committed using a firearm, machete, and BB gun—left terrified New Yorkers in their wake. Let these charges be a message to any gang members who think they can get away with perpetrating violence in our city: this Office will prosecute you to the fullest extent of the law.”
NYPD Commissioner Edward A. Caban said: “These arrests underscore the NYPD’s relentless efforts to identify and investigate the alleged members of ruthless gangs and crews plaguing our neighborhoods. I commend our NYPD detectives and our partners in the office of the U.S. Attorney for the Southern District of New York for their ongoing work to eradicate gun violence in New York City and their commitment to preserving the safety of all New Yorkers.”
As alleged in the Indictment and other documents filed in federal court:[1]
The “Shooting Boys” gang is a criminal organization based in the University Heights section of the Bronx. Since at least 2017, gang members have sold drugs, used guns, and committed numerous acts of violence against members of rival gangs. Originally associated with the “Trinitarios” gang, the Shooting Boys broke off from the “Sunset” chapter of the Trinitarios in about 2018. The defendants are members and associates of the Shooting Boys.
Between April 25 and May 10, 2022, the defendants committed gunpoint robberies of two convenience stores in Manhattan and the Bronx, robbed a third convenience store in the Bronx using a machete and a BB gun, committed an armed carjacking of a victim’s BMW in the Bronx, and forcibly stole a Jeep Cherokee from a victim in Queens, New York. Still images from surveillance video capturing certain of these incidents are pictured below:
April 25, 2022, Gunpoint Convenience Store Robbery
April 30, 2022, Gunpoint Convenience Store Robbery
May 10, 2022, Machete and BB Gun Convenience Store Robbery
FERNANDEZ provided the other defendants with the firearm—a .357 revolver—and BB gun that were used during the charged incidents. The .357 revolver was recovered by law enforcement and is pictured below.
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A chart containing the names, charges, and maximum and minimum penalties for the defendants is set forth below.
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 defendants will be determined by a judge.
Mr. Williams praised the outstanding investigative work of the NYPD.
This case is being prosecuted by the Office’s Violent and Organized Crime Unit. Assistant U.S. Attorneys Dominic A. Gentile and Chelsea L. Scism are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Charge
Defendants
Maximum and Minimum Penalties
Count One
Conspiracy to Commit Hobbs Act Robbery
18 U.S.C. § 1951
KELVIN FERNANDEZ
JUAN LOPEZ
DEIVID PEREZ
MOISES HERNANDEZ DE LA CRUZ
Maximum: 20 years in prison
Count Two
Hobbs Act Robbery
18 U.S.C. §§ 1951 and 2
KELVIN FERNANDEZ
JUAN LOPEZ
DEIVID PEREZ
Maximum: 20 years in prison
Count Three
Firearms Offense
18 U.S.C. §§ 924(c) and 2
KELVIN FERNANDEZ
JUAN LOPEZ
DEIVID PEREZ
Maximum: Life in prison
Minimum: 7 years in prison, which must be consecutive to any other term imposed
Count Four
Hobbs Act Robbery
18 U.S.C. §§ 1951 and 2
KELVIN FERNANDEZ
JUAN LOPEZ
DEIVID PEREZ
Maximum: 20 years in prison
Count Five
Firearms Offense
18 U.S.C. §§ 924(c) and 2
KELVIN FERNANDEZ
JUAN LOPEZ
DEIVID PEREZ
Maximum: Life in prison
Minimum: 7 years in prison, which must be consecutive to any other term imposed
Count Six
Hobbs Act Robbery
18 U.S.C. §§ 1951 and 2
KELVIN FERNANDEZ
MOISES HERNANDEZ DE LA CRUZ
DEIVID PEREZ
Maximum: 20 years in prison
Count Seven
Carjacking
18 U.S.C. §§ 2119 and 2
KELVIN FERNANDEZ
JUAN LOPEZ
DEIVID PEREZ
Maximum: 15 years in prison
Count Eight
Firearms Offense
18 U.S.C. § 924(c) and 2
KELVIN FERNANDEZ
JUAN LOPEZ
DEIVID PEREZ
Maximum: Life in prison
Minimum: 7 years in prison, which must be consecutive to any other term imposed
Count Nine
Interstate Transportation of a Stolen Vehicle
18 U.S.C. §§ 2312 and 2
MOISES HERNANDEZ DE LA CRUZ
DEIVID PEREZ
Maximum: 10 years in prison
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Pakistani National Charged for Plotting Terrorist Attack in New York City in Support of ISISRead the Press Release
Note: View the complaint here.
A Pakistani citizen residing in Canada, Muhammad Shahzeb Khan, 20, also known as Shahzeb Jadoon, was arrested on Sept. 4 in Canada in connection with a complaint filed in the Southern District of New York. Khan was charged with attempting to provide material support and resources to a designated foreign terrorist organization (FTO), the Islamic State of Iraq and al-Sham (ISIS).
“The defendant is alleged to have planned a terrorist attack in New York City around October 7th of this year with the stated goal of slaughtering, in the name of ISIS, as many Jewish people as possible,” said Attorney General Merrick B. Garland. “Thanks to the investigative work of the FBI, and the quick action of our Canadian law enforcement partners, the defendant was taken into custody. As I said to Canada’s Minister of Public Safety yesterday, we are deeply grateful to our Canadian partners for their critical law enforcement actions in this matter. Jewish communities — like all communities in this country — should not have to fear that they will be targeted by a hate-fueled terrorist attack. The Justice Department will continue to work closely with our domestic and international partners to aggressively counter the threat posed by ISIS and other terrorist organizations and their supporters.”
“The defendant was allegedly determined to kill Jewish people here in the United States, nearly one year after Hamas’ horrific attack on Israel. This investigation was led by the FBI, and I am proud of the terrific work by the FBI team and our partners to disrupt Khan's plan.” said FBI Director Christopher Wray. “The FBI will continue to work closely with our partners to investigate and hold accountable those who seek to commit violence in the name of ISIS or other terrorist organizations. Fighting terrorism remains the FBI’s top priority.”
As alleged in the complaint, Khan, who resided in Canada, attempted to travel from Canada to New York City, where he intended to use automatic and semi-automatic weapons to carry out a mass shooting in support of ISIS at a Jewish center in Brooklyn, New York. Khan began posting on social media and communicating with others on an encrypted messaging application about his support for ISIS in or about November 2023, when, among other things, Khan distributed ISIS propaganda videos and literature. Subsequently, Khan began communicating with two undercover law enforcement officers (collectively, the UCs).
During those conversations, Khan confirmed that he and a U.S.-based ISIS supporter (Associate-1) had been planning to carry out an attack in a particular U.S. city (City-1). Among other things, Khan said that he had been actively attempting to create “a real offline cell” of ISIS supporters to carry out a “coordinated assault” in City-1 using AR-style rifles to “target[] Israeli Jewish chabads . . . scattered all around [City-1].” During subsequent conversations, Khan repeatedly instructed the UCs to obtain AR-style assault rifles, ammunition, and other materials to carry out the attacks, and identified the specific locations in City-1 where the attacks would take place. Khan also provided details about how he would cross the border from Canada into the United States to conduct the attacks. During these conversations with the UCs, Khan emphasized that “Oct 7th and oct 11th are the best days for targeting the jews” because “oct 7 they will surely have some protests and oct 11 is yom.kippur.”
On or about Aug. 20, Khan changed his target location from City-1 to New York City. After initially suggesting certain neighborhoods in New York City to the UCs, Khan decided to target Location-1, a Jewish center located in Brooklyn, New York. Khan told the UCs that he planned to carry out this attack on or around Oct. 7, 2024 — which Khan recognized as the one-year anniversary of the brutal terrorist attacks in Israel by Hamas, a designated FTO, which, on Oct. 7, 2023, launched a wave of violent, large-scale terrorist attacks in Israel. In support of his choice of New York City as his target location, Khan boasted that “New york is perfect to target jews” because it has the “largest Jewish population In america” and therefore, “even if we dont attack a[n] Event[,] we could rack up easily a lot of jews.” Khan proclaimed that “we are going to nyc to slaughter them,” and sent a photograph of the specific area inside of Location-1 where he planned to carry out the attack.
Thereafter, Khan continued to urge the UCs to acquire AR-style rifles, ammunition, and other equipment for his attack, including “some good hunting [knives] so we can slit their throats.” Khan repeatedly reiterated his desire to carry out the attack in support of ISIS, and discussed planning for the attack, including by identifying rental properties close to Location-1 and paying for a human smuggler to help him reach and cross the border from Canada into the United States. During one communication, Khan noted that “if we succeed with our plan this would be the largest Attack on US soil since 9/11.”
On or about Sept. 4, as Khan said he planned to do in connection with his attack, Khan attempted to reach the U.S-Canada border. To do so, Khan used three separate cars to travel across Canada towards the United States, before he was stopped in or around Ormstown, Canada, approximately 12 miles from the U.S.-Canada border.
Khan is charged with one count of attempting to provide material support and resources to a designated foreign terrorist organization. If convicted, he faces a maximum sentence 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 FBI New York, Chicago, and Los Angeles Field Offices are investigating the case. The Justice Department is grateful to Canadian law enforcement for their actions in this matter. The Office of International Affairs of the Department of Justice’s Criminal Division is seeking the extradition of Khan from Canada.
Assistant U.S. Attorneys Kaylan E. Lasky and David J. Robles for the Southern District of New York and Trial Attorney Kevin C. Nunnally of the Justice Department’s National Security Division’s Counterterrorism 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.
Pakistani National Charged for Plotting Terrorist Attack in New York City in Support of ISISRead the Press Release
Note: View the complaint here.
A Pakistani citizen residing in Canada, Muhammad Shahzeb Khan, 20, also known as Shahzeb Jadoon, was arrested on Sept. 4 in Canada in connection with a complaint filed in the Southern District of New York. Khan was charged with attempting to provide material support and resources to a designated foreign terrorist organization (FTO), the Islamic State of Iraq and al-Sham (ISIS).
“The defendant is alleged to have planned a terrorist attack in New York City around October 7th of this year with the stated goal of slaughtering, in the name of ISIS, as many Jewish people as possible,” said Attorney General Merrick B. Garland. “Thanks to the investigative work of the FBI, and the quick action of our Canadian law enforcement partners, the defendant was taken into custody. As I said to Canada’s Minister of Public Safety yesterday, we are deeply grateful to our Canadian partners for their critical law enforcement actions in this matter. Jewish communities — like all communities in this country — should not have to fear that they will be targeted by a hate-fueled terrorist attack. The Justice Department will continue to work closely with our domestic and international partners to aggressively counter the threat posed by ISIS and other terrorist organizations and their supporters.”
“The defendant was allegedly determined to kill Jewish people here in the United States, nearly one year after Hamas’ horrific attack on Israel. This investigation was led by the FBI, and I am proud of the terrific work by the FBI team and our partners to disrupt Khan's plan.” said FBI Director Christopher Wray. “The FBI will continue to work closely with our partners to investigate and hold accountable those who seek to commit violence in the name of ISIS or other terrorist organizations. Fighting terrorism remains the FBI’s top priority.”
As alleged in the complaint, Khan, who resided in Canada, attempted to travel from Canada to New York City, where he intended to use automatic and semi-automatic weapons to carry out a mass shooting in support of ISIS at a Jewish center in Brooklyn, New York. Khan began posting on social media and communicating with others on an encrypted messaging application about his support for ISIS in or about November 2023, when, among other things, Khan distributed ISIS propaganda videos and literature. Subsequently, Khan began communicating with two undercover law enforcement officers (collectively, the UCs).
During those conversations, Khan confirmed that he and a U.S.-based ISIS supporter (Associate-1) had been planning to carry out an attack in a particular U.S. city (City-1). Among other things, Khan said that he had been actively attempting to create “a real offline cell” of ISIS supporters to carry out a “coordinated assault” in City-1 using AR-style rifles to “target[] Israeli Jewish chabads . . . scattered all around [City-1].” During subsequent conversations, Khan repeatedly instructed the UCs to obtain AR-style assault rifles, ammunition, and other materials to carry out the attacks, and identified the specific locations in City-1 where the attacks would take place. Khan also provided details about how he would cross the border from Canada into the United States to conduct the attacks. During these conversations with the UCs, Khan emphasized that “Oct 7th and oct 11th are the best days for targeting the jews” because “oct 7 they will surely have some protests and oct 11 is yom.kippur.”
On or about Aug. 20, Khan changed his target location from City-1 to New York City. After initially suggesting certain neighborhoods in New York City to the UCs, Khan decided to target Location-1, a Jewish center located in Brooklyn, New York. Khan told the UCs that he planned to carry out this attack on or around Oct. 7, 2024 — which Khan recognized as the one-year anniversary of the brutal terrorist attacks in Israel by Hamas, a designated FTO, which, on Oct. 7, 2023, launched a wave of violent, large-scale terrorist attacks in Israel. In support of his choice of New York City as his target location, Khan boasted that “New york is perfect to target jews” because it has the “largest Jewish population In america” and therefore, “even if we dont attack a[n] Event[,] we could rack up easily a lot of jews.” Khan proclaimed that “we are going to nyc to slaughter them,” and sent a photograph of the specific area inside of Location-1 where he planned to carry out the attack.
Thereafter, Khan continued to urge the UCs to acquire AR-style rifles, ammunition, and other equipment for his attack, including “some good hunting [knives] so we can slit their throats.” Khan repeatedly reiterated his desire to carry out the attack in support of ISIS, and discussed planning for the attack, including by identifying rental properties close to Location-1 and paying for a human smuggler to help him reach and cross the border from Canada into the United States. During one communication, Khan noted that “if we succeed with our plan this would be the largest Attack on US soil since 9/11.”
On or about Sept. 4, as Khan said he planned to do in connection with his attack, Khan attempted to reach the U.S-Canada border. To do so, Khan used three separate cars to travel across Canada towards the United States, before he was stopped in or around Ormstown, Canada, approximately 12 miles from the U.S.-Canada border.
Khan is charged with one count of attempting to provide material support and resources to a designated foreign terrorist organization. If convicted, he faces a maximum sentence 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 FBI New York, Chicago, and Los Angeles Field Offices are investigating the case. The Justice Department is grateful to Canadian law enforcement for their actions in this matter. The Office of International Affairs of the Department of Justice’s Criminal Division is seeking the extradition of Khan from Canada.
Assistant U.S. Attorneys Kaylan E. Lasky and David J. Robles for the Southern District of New York and Trial Attorney Kevin C. Nunnally of the Justice Department’s National Security Division’s Counterterrorism 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.