Southern District of New York
Press releases recorded for this federal judicial district.
Real Estate Promoter Pleads Guilty to Defrauding InvestorsRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that ELIEZER TILSON, a real estate promoter based in Israel, pled guilty to violating the Travel Act in connection with his embezzlement of $650,000 in investor funds.
U.S. Attorney Damian Williams said: “Investment fraud, like all financial crimes, has the potential to turn lives upside down and breed distrust in vital economic sectors. Eliezer Tilson took advantage of real estate’s integral role in the U.S. economy, admitting today to defrauding innocent victims who believed their investments were secure when, in fact, their money was being used to pay off debts and other victims. This Office will continue to keep a watchful eye on the markets and prosecute those attempting to deceive the investing public.”
According to the allegations contained in the Information:
In October 2019, TILSON solicited investments from two investors in New York City in an investment fund that focused on multifamily residential real estate projects. The two investors together sent $650,000 to TILSON for investment in the fund. TILSON never transmitted any of the victims' money to the fund. Instead, he used most of the money to pay dividends to other investors in separate, unrelated real estate projects and pay down prior debt incurred by other, unrelated entities.
When the victims first asked why their funds had not arrived at the investment fund, TILSON falsely assured them that the fund had their money. He later told the victims that he had arranged to send their money to the fund by wire transfer but that the wire had not yet gone through. He subsequently sent the victims a document purportedly from his bank showing a balance of more than $800,000 in his account when, in fact, that account was overdrawn. The next day, TILSON sent the victims a purported bank document falsely indicating that he had wired the first victim's money back to him and another purported bank document falsely indicating that his account had a balance of more than $400,000 when the account was overdrawn. TILSON admitted to the victims that he had taken their money a few days later to make other payments.
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TILSON, 37, of Netanya, Israel, pled guilty to one count of violating the Travel Act, which prohibits the use of facilities in interstate and foreign commerce, including wire communications, to carry out unlawful activities such as engaging in monetary transactions in property derived from fraud in the sale of securities. It carries a maximum sentence of five 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 a judge.
Mr. Williams praised the outstanding investigative work of the Federal Bureau of Investigation.
This case is being handled by the Office’s White Plains Division. Assistant U.S. Attorney James McMahon is in charge of the prosecution.
Former NYPD Officer Pleads Guilty in Connection with Obstructing A Federal Investigation and Helping A Gang Leader Evade Capture After Committing MurderRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced today the guilty plea of GINA MESTRE, a former New York City Police Officer, in connection with her involvement in obstructing a federal investigation into the Shooting Boys gang and serving as an accessory after the fact to a murder committed by the gang’s leader. MESTRE pled guilty today before U.S. District Judge Denise Cote.
U.S. Attorney Damian Williams said: “As she has now admitted, Gina Mestre, a former NYPD Officer, abused her position of public trust and betrayed the oath she took to protect and serve the citizens of New York City by helping a gang member evade capture for a murder of a rival gang member that he committed in broad daylight. When law enforcement officers break the laws they are sworn to uphold, they do a disservice to their fellow officers, to the departments that employ them, and to the public they serve. My Office will work tirelessly with our law enforcement partners to uncover and prosecute such corruption.”
As alleged in the Indictment, other public court documents, and statements made during court proceedings:
MESTRE was an NYPD Police Officer from July 2013 to May 2022 and assigned to the 52nd Precinct’s Public Safety Unit. In the summer of 2020, a major focus of the precinct and the Public Safety Unit was the reduction of gun violence, much of which was committed by members of the Shooting Boys gang.
The Shooting Boys gang is a criminal organization based in the University Heights section of the Bronx. Since at least 2017, members of the gang have sold drugs, used guns, and committed numerous acts of violence against rival gang members. The gang’s territory and base of operations fell within the jurisdiction of the NYPD’s 52nd Precinct, where MESTRE worked. The leader of the Shooting Boys was Andrew Done, a/k/a “Caballo.”
In or about June 2020, MESTRE began communicating with Done through secret social media accounts and phone numbers. MESTRE and Done began an intimate relationship, during which MESTRE provided Done and other gang members with confidential, non-public law enforcement information about the federal grand jury investigation into the Shooting Boys. For example, MESTRE warned Done and other gang members that federal authorities were investigating the gang and preparing to bring a federal indictment. MESTRE also warned Done about impending law enforcement operations, enabling Done and other gang members to conceal their criminal activity. In addition, MESTRE disclosed the identity of a witness cooperating with law enforcement and providing information about the gang, which allowed Done and other Shooting Boys to assault and intimidate the witness in an effort to prevent the witness from further cooperation.
On November 5, 2020, Done shot and killed a rival gang member (“Victim-1”) as Victim-1 sat in his car in the Bronx. NYPD Detectives investigating the murder recovered security camera video capturing Done’s commission of the murder. Several members of the 52nd Precinct were called upon to assist in the identification of the person captured on the video. MESTRE was one of several officers who identified Done as the perpetrator.
During the manhunt to apprehend Done, of which MESTRE was a part, MESTRE covertly advised Done that authorities were looking for him and sent Done a copy of the video that showed him committing the murder (thus making clear to Done that the evidence against him was overwhelming). In the days and weeks following the murder, MESTRE continued to secretly communicate with Done and warn him about law enforcement’s efforts to capture him, which helped him avoid apprehension and eventually flee the United States. During this time, while authorities were trying to locate Done, MESTRE was aware of the cellphone numbers being used by Done, communicated with Done while he used those cellphones, knew that the cellphone numbers could be used by law enforcement to track Done’s location, but failed to share the information regarding Done’s use of the cellphone numbers with other law enforcement officers.
In March 2022, 10 members of the Shooting Boys were charged in a 15-count indictment with various federal crimes, including racketeering conspiracy and murder. Done was charged with the murder of Victim-1 and was apprehended in the Dominican Republic several months later.
On November 17, 2022, Done pled guilty to racketeering conspiracy and admitted to murdering Victim-1. On February 22, 2023, Done was sentenced to 35 years in prison.
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MESTRE, 33, of Mohegan Lake, New York, pled guilty to one count of accessory after the fact to murder in aid of racketeering, which carries a maximum sentence of 15 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 the judge. MESTRE will be sentenced by Judge Cote on March 21, 2024.
Mr. Williams praised the outstanding investigative work of the NYPD’s Internal Affairs Bureau, Group 25, and the Special Agents of the U.S. Attorney’s Office for the Southern District of New York.
The case is being prosecuted by the Office’s Violent and Organized Crime Unit. Assistant U.S. Attorneys Dominic A. Gentile and Jim Ligtenberg are in charge of the prosecution.
Bronx Gang Member Sentenced to 30 Years in Prison for MurderRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that JALEEL SHAKOOR, a/k/a “Midnight,” was sentenced today to 30 years in prison in connection with the murder of Gerry Mazzella on June 3, 2021, in the Bronx, New York. SHAKOOR previously pled guilty to racketeering conspiracy and interstate transportation of a firearm before U.S. District Judge Colleen McMahon, who imposed today’s sentence.
U.S. Attorney Damian Williams said: “Jaleel Shakoor murdered 26-year-old Gerry Mazzella by shooting him in the back of the neck from point-blank range. Mazzella’s death was senseless. New Yorkers must be able to lead their lives free from the threat of gang violence. Gang members who commit violent crimes will be apprehended and prosecuted to the fullest extent of the law.”
As alleged in the Indictment and other documents filed in federal court and based on statements made in public court proceedings:
From at least 2020 to 2022, SHAKOOR was a member of the Untouchable Gorilla Stone Nation (“Gorilla Stone”), which is a set of the national Bloods gang. Gorilla Stone operated primarily in the northeast United States, including in the Bronx, and in the jails and prisons of New York City and the State of New York.
Members of Gorilla Stone committed robberies and distributed controlled substances in order to enrich themselves. They also murdered and assaulted members of rival gangs and members of Gorilla Stone in order to resolve disputes within the gang. Gorilla Stone members promoted and celebrated the gang’s criminal conduct — including drug distribution, acts of violence, and firearms usage — on social media.
On June 3, 2021, in the vicinity of West 165th Street and Woodycrest Avenue in the Bronx, SHAKOOR shot Mazzella in the back of the neck, causing Mazzella’s death. SHAKOOR committed this murder to retaliate against one of Mazzella’s friends, with whom SHAKOOR had an ongoing, gang-related dispute.
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In addition to his prison sentence, SHAKOOR, 28, of the Bronx, New York, was sentenced to three years of supervised release.
Mr. Williams praised the outstanding investigative work of the New York City Police Department.
This case is being prosecuted by the Office’s Violent & Organized Crime Unit. Assistant U.S. Attorneys Patrick R. Moroney, Christopher D. Brumwell, and Emily A. Johnson are in charge of the prosecution.
Bronx Man Sentenced to 47 Months in Prison for Committing Shooting in Broad DaylightRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced today that DUJOHN WILLETTE was sentenced to 47 months in prison in connection with a shootout he engaged in on September 27, 2021, that resulted in a 14-year-old being shot in the ankle. WILLETTE previously pled guilty before U.S. District Judge Richard M. Berman, who also imposed today’s sentence, to one count of possessing ammunition after conviction for a felony.
U.S. Attorney Damian Williams said: “In September 2021, Dujohn Willette engaged in a shootout in broad daylight in the middle of a crowded street in the Bronx. Residents of the Bronx were endangered that day, and a 14-year-old was injured. Willette is a repeat offender, having been prosecuted by our Office twice before for illegally possessing firearms. As today’s sentence demonstrates, our Office is committed to keeping New York City safe by vigorously prosecuting perpetrators of gun violence.”
According to the Indictment and other filings and statements made in court:
At approximately 2:32 p.m. on September 27, 2021, WILLETTE was riding his moped on the sidewalk of East 228th Street in the Bronx. As WILLETTE approached the corner of East 228th Street and White Plains Road, he rode past a group of men, jumped off his moped, and, while running backwards, fired a gun. In total, WILLETTE and another shooter shot at each other seven times. Below are two photographs showing WILLETTE firing his weapon:
In the crossfire, a 14-year-old boy was shot in the ankle.
Before this conviction, WILLETTE had three prior felony convictions for illegally possessing firearms and had twice before been prosecuted by the U.S. Attorney’s Office for possessing a firearm after a felony conviction.
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In addition to his prison term, WILLETTE, 35, of the Bronx, New York, was sentenced to three years of supervised release.
Mr. Williams praised the outstanding investigative work of the Special Agents of the U.S. Attorney’s Office.
This case is being handled by the Office’s General Crimes Unit. Assistant U.S. Attorneys Adam Sowlati and Danielle Sassoon are in charge of the prosecution.
Westchester Felon Charged with Distributing Fentanyl That Killed A Man and Illegally Possessing AmmunitionRead 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 Field Office of the Drug Enforcement Administration (“DEA”), and Robert Noble, Chief of the Yorktown Police Department, announced that PERRY FREEMAN was charged today with distributing fentanyl that resulted in the death of a victim and illegally possessing ammunition. FREEMAN was arrested and presented today before U.S. Magistrate Judge Andrew E. Krause.
U.S. Attorney Damian Williams said: “As alleged, Perry Freeman sold fentanyl to a victim who died a horrific death shortly after taking the drugs. Investigators concluded that the victim parked his car and, with his foot on the gas, passed out from ingesting lethal levels of the drugs allegedly provided by Freeman. The engine sparked a fire that engulfed the vehicle and burned the victim’s body. We also allege that Freeman regularly sold fentanyl to a confidential informant and warned the informant to be careful with the drugs, indicating he knew how unsafe his product was. This Office will not rest until those who peddle this poison have been brought to justice.”
DEA Special Agent in Charge Frank A. Tarentino III said: “Data doesn’t lie, and law enforcement continues to track fatal fentanyl poisonings to the person responsible. This arrest is an example of DEA and our law enforcement partners’ efforts to thwart more drug poisonings and bring to justice those responsible for causing the most harm to our communities. I commend the men and women of the Yorktown Police Department, the DEA’s Westchester Resident Office’s Tactical Diversion Squad, and the U.S. Attorney’s Office for the Southern District of New York for their tenacious work on this investigation.”
Yorktown Police Chief Robert Noble said: “It is good for our community to see their local police department request assistance from federal agencies like the DEA and the U.S. Attorney’s Office for the Southern District of New York and have it culminate with the arrest of an alleged dangerous drug dealer. I commend the determination, intelligence, and teamwork demonstrated throughout this investigation. Yorktown is a law and order community. We’ll continue to work hard, share information, and work shoulder to shoulder on our streets with all of our partners in law enforcement to keep it that way.”
As alleged in the Complaint:[1]
On or about November 10, 2021, FREEMAN sold fentanyl to his victim. Shortly thereafter, the police responded to a report of a burning car in a parking lot in Mohegan Lake, New York, approximately a three-minute drive from FREEMAN’s apartment building. They found a Ford Focus on fire; the victim was in the driver’s seat with his foot on the accelerator pedal. After the fire department put the fire out, the victim, declared dead, was pulled out. Investigators determined that the car caught on fire after overheating while the accelerator pedal was depressed for an excessive period and the car was in park, i.e., while the victim was passed out in the driver’s seat with his foot on the pedal.
The Westchester County Medical Examiner’s Office, which is part of the Westchester Department of Laboratories and Research, performed an autopsy on the victim. According to a report prepared by the Department of Laboratories and Research, as well as a conversation between a law enforcement officer and a member of the Medical Examiner’s office, the victim had lethal levels of both fentanyl and norfentanyl, a metabolite of fentanyl, in his blood and there was some darkening of his lungs, which indicated smoke inhalation before his death. Moreover, the victim’s cause of death was certified as both acute fentanyl intoxication and accident.
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FREEMAN, 37, of Mohegan Lake, New York, is charged with one count of fentanyl distribution resulting in death, which carries a minimum sentence of 20 years in prison and a maximum sentence of life in prison, and one count of illegally possessing ammunition as a convicted felon, which carries a maximum sentence of 15 years in prison.
The minimum and maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Williams praised the outstanding work of the DEA and the Yorktown Police Department.
The case is being prosecuted by the Office’s White Plains Division. Assistant U.S. Attorneys Michael D. Maimin and Ben Arad 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, and the description of the Complaint set forth herein, constitutes only allegations, and every fact described therein should be treated as an allegation.
Swiss Private Bank, Banque Pictet, Admits to Conspiring with U.S. Taxpayers to Hide Assets and Income in Offshore AccountsRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, Stuart M. Goldberg, the Acting Deputy Assistant Attorney General for Criminal Matters of the Justice Department’s Tax Division, and Jim Lee, the Chief of the Internal Revenue Service, Criminal Investigation (“IRS-CI”), announced today the filing of criminal charges against Swiss Bank, BANQUE PICTET ET CIE SA (“BANQUE PICTET” or the “Bank”) for conspiring with U.S. taxpayers and others to hide more than $5.6 billion in 1,637 secret bank accounts in Switzerland and elsewhere and to conceal the income generated in those accounts from the IRS.
As part of today’s resolution, BANQUE PICTET entered into a Deferred Prosecution Agreement (“DPA”) and agreed to pay approximately $122.9 million to the U.S. Treasury. Today’s resolution is one of a series of cases brought by the Department of Justice in connection with its investigations since 2008 into facilitation of offshore U.S. tax evasion by foreign banks. The case has been assigned to U.S. District Judge Edgardo Ramos.
U.S. Attorney Damian Williams said: “As it has admitted today, Banque Pictet knowingly conspired to conceal from the IRS the income generated by accounts which held more than $5.6 billion. Thanks to the hard work of the career prosecutors of this Office and our law enforcement partners, Banque Pictet has agreed to pay more than $122.9 million and will continue to cooperate with the Department of Justice. Rooting out financial malfeasance remains a priority for this Office, and we encourage companies and financial institutions to come to us to report wrongdoing before we come to you.”
Acting Deputy Assistant Attorney General Stuart M. Goldberg said: “Today, Banque Pictet et Cie admitted to actively helping U.S. taxpayers use coded accounts, foreign trusts and entities, nominee beneficiaries and other deceits to conceal their income and assets abroad. For this criminal conduct the bank will be paying nearly $122.9 million in restitution, disgorgement of fees and a financial penalty, and is required to fully cooperate with investigations relating to these secret accounts.”
IRS-CI Chief Jim Lee said: “This case should provide a clear message to others who try to hide their assets and income offshore. Our special agents are experts in following the money, and they are the best at uncovering schemes that try to defraud the U.S. tax system. Offshore tax evasion is a priority for IRS Criminal Investigation, and today’s deferred prosecution agreement with Bank Pictet collects more than $120 million owed to the U.S. government.”
According to documents filed today in Manhattan federal court:
The Pictet Group was founded in 1805 and is a privately held Swiss financial institution headquartered in Geneva that has historically operated as a general partnership and, since 2014, as a corporate partnership. A limited number of managing partners, generally eight or fewer, collectively known as “The Salon,” own and manage the Pictet Group.
As of December 31, 2014, the Pictet Group had approximately 3,800 employees in various locations, primarily in Switzerland, but also in Luxembourg, Hong Kong, Singapore, and the Bahamas. The Pictet Group operates two main business divisions: institutional asset management and private banking for individuals.
From 2008 to 2014, the Pictet Group’s private banking division was operated by the group’s following banking entities: the Swiss bank (BANQUE PICTET & CIE SA); Pictet & Cie (Europe) SA, headquartered in Luxembourg; Bank Pictet & Cie (Asia) Ltd. in Singapore; and the Bahamian bank, Pictet Bank & Trust Ltd. The Pictet Group provided offshore corporation and trust formation and administration services to certain U.S. taxpayers, first through the Estate Planning and Trust Services unit and later through a wholly owned subsidiary called Rhone Trust and Fiduciary Services SA (Rhone).
As of December 31, 2014, the Pictet Group’s private banking division managed or held custody of approximately $165 billion in assets under management (“AUM”). From 2008 to 2014, the Pictet Group served approximately 3,736 private accounts that had U.S. taxpayers as beneficial owners, whose aggregate maximum AUM, including declared assets, was approximately $20 billion.
Though the Pictet Group adopted early measures to confirm that U.S. clients complied with U.S. law, from 2008 through 2014, the Pictet Group assisted certain U.S. taxpayer-clients with Pictet Group accounts in evading their U.S. tax obligations and otherwise hiding undeclared accounts[1] from the IRS.
In total, from 2008 through 2014, the Pictet Group held 1,637 U.S. Penalty Accounts,[2] with aggregate maximum AUM of approximately $5.6 billion in January 2008, on behalf of U.S. taxpayer-clients, who collectively evaded approximately $50.6 million in U.S. taxes.
The Pictet Group assisted U.S. taxpayer-clients with evading their U.S. taxes by opening and maintaining undeclared accounts for U.S. taxpayer-clients at the Pictet Group, either directly or through external asset managers. The Pictet Group also maintained accounts of certain U.S. taxpayer-clients within the Pictet Group in a manner that allowed the U.S. taxpayer-clients to further conceal their undeclared accounts from the IRS. The Pictet Group and certain of its employees knew or should have known that some of their U.S. taxpayer-clients were evading U.S. taxes. In every instance, managing partners approved the opening of new private client relationships and were informed of the closing of U.S. taxpayer-clients’ accounts, which included some undeclared accounts.
As further detailed below, the Pictet Group used a variety of means to assist U.S. taxpayer-clients in concealing their undeclared accounts, including by:
- Forming or administering offshore entities in whose name the Pictet Group opened and maintained accounts, some of which were undeclared, for U.S. taxpayer-clients;
- Opening and maintaining undeclared accounts in the names of offshore entities formed by others for U.S. taxpayer-clients;
- Opening and maintaining Private Placement Life Insurance policy accounts, also called insurance wrappers, held in the name of insurance companies but beneficially owned by U.S. taxpayers and improperly managed or funded through undeclared accounts at the Pictet Group;
- Transferring funds from undeclared U.S. taxpayer-client accounts to accounts nominally held by non-U.S. clients but still controlled by U.S. taxpayer-clients via fictitious donations, thus assisting U.S. taxpayer-clients in continuing to maintain undeclared funds offshore; and
- Providing traditional Swiss banking products such as hold-mail account services, where account-related mail is held at the bank rather than sent to the client, and coded or numbered accounts; and
- Accepting IRS Forms W-8BEN[3] or Pictet Group’s substitute forms that the group knew or should have known falsely stated or implied under penalty of perjury that offshore entities beneficially owned the assets in the undeclared accounts.
The $122.9 million BANQUE PICTET agreed to pay to the U.S. Treasury pursuant to the DPA consists of (i) $52,164,201 to the United States, which represents gross fees (not profits) that the bank earned on its undeclared accounts between 2008 and 2014; (ii) $31,844,192 in restitution to the IRS, which represents the unpaid taxes resulting from BANQUE PICTET’s participation in the conspiracy; and (iii) a $38,950,998 penalty. The penalty considers the nature and seriousness of the Pictet Group's conduct, the Bank’s extensive internal investigation, the Bank’s substantial provision of documents to the Justice Department, and the Bank’s facilitation of witness interviews. The Bank further implemented remedial measures to protect against the use of its services for future tax evasion.
In addition to the payment, BANQUE PICTET also agrees under the DPA to accept responsibility for its conduct by stipulating to the accuracy of an extensive Statements of Facts. BANQUE PICTET further agreed to refrain from all future criminal conduct, implement remedial measures and cooperate fully with further investigations into hidden bank accounts. Specifically, the Bank is required to cooperate fully with ongoing investigations and affirmatively disclose any information it may later uncover regarding U.S.-related accounts. The Bank is also required to disclose information consistent with the Justice Department’s Swiss Bank Program relating to accounts closed between January 1, 2008, and December 31, 2022. The agreements provide no protection from criminal or civil prosecution for any individuals.
If BANQUE PICTET continues to comply with its agreement, the United States has agreed to defer prosecution of BANQUE PICTET for a period of three years, after which time the United States will seek to dismiss the charge against BANQUE PICTET.
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Mr. Williams praised the outstanding investigative work of the special agents of IRS-CI.
The prosecution of this case is being handled by the Justice Department’s Tax Division and the Complex Frauds and Cybercrime Unit of the U.S. Attorney’s Office for the Southern District of New York. Senior Litigation Counsel Nanette Davis of the Tax Division and Assistant U.S. Attorneys Daniel G. Nessim and Olga Zverovich are in charge of the prosecution.
[1] An “undeclared account” was a financial account beneficially owned by an individual subject to U.S. tax obligations and maintained in a foreign country that had not been reported by the individual account owner to the U.S. Government on an income tax return or an FBAR—a Report of Foreign Bank and Financial Accounts, FinCEN Form 114 (formerly known as Form TD F 90 22.1).
[2] “U.S. Penalty Accounts” are defined as U.S. accounts valued over $50,000 that the parties agree should be subject to a penalty for the offense conduct.
[3] The IRS Form W-8BEN is a tax form that identifies the foreign status of non-U.S. persons for U.S. tax withholding purposes.
Swiss Private Bank Banque Pictet Admits to Conspiring with U.S. Taxpayers to Hide Assets and Income in Offshore AccountsRead the Press Release
Swiss private bank Banque Pictet et Cie SA admitted today to conspiring with U.S. taxpayers and others to hide more than $5.6 billion in 1,637 secret bank accounts in Switzerland and elsewhere and to conceal the income generated in those accounts from the IRS.
As part of today’s resolution, Banque Pictet entered into a deferred prosecution agreement and agreed to pay approximately $122.9 million to the U.S. Treasury. Today’s resolution is one of a series of cases by the Justice Department in connection with its investigations since 2008 into facilitation of offshore U.S. tax evasion by foreign banks. The case has been assigned to U.S. District Judge Edgardo Ramos for the Southern District of New York.
“Today, Banque Pictet et Cie admitted to actively helping U.S. taxpayers use coded accounts, foreign trusts and entities, nominee beneficiaries and other deceits to conceal their income and assets abroad,” said Acting Deputy Assistant Attorney General Stuart M. Goldberg. “For this criminal conduct the bank will be paying nearly $122.9 million in restitution, disgorgement of fees and a financial penalty, and is required to fully cooperate with investigations relating to these secret accounts.”
“As it has admitted today, Banque Pictet knowingly conspired to conceal from the IRS the income generated by accounts which held more than $5.6 billion,” said U.S. Attorney Damian Williams for the Southern District of New York. “Thanks to the hard work of the career prosecutors of this Office and our law enforcement partners, Banque Pictet has agreed to pay more than $122.9 million and will continue to cooperate with the Department of Justice. Rooting out financial malfeasance remains a priority for this Office, and we encourage companies and financial institutions to come to us to report wrongdoing before we come to you.”
“This case should provide a clear message to others who try to hide their assets and income offshore. Our special agents are experts in following the money, and they are the best at uncovering schemes that try to defraud the U.S. tax system,” said IRS Criminal Investigation Chief Jim Lee. “Offshore tax evasion is a priority for IRS Criminal Investigation, and today’s deferred prosecution agreement with Bank Pictet collects more than $120 million owed to the U.S. government.”
According to documents filed today in Manhattan federal court:
The Pictet Group was founded in 1805 and is a privately held Swiss financial institution headquartered in Geneva that has historically operated as a general partnership and, since 2014, as a corporate partnership. A limited number of managing partners, generally eight or fewer, collectively known as “The Salon,” own and manage the Pictet Group.
As of Dec. 31, 2014, the Pictet Group had approximately 3,800 employees in various locations, primarily in Switzerland, but also in Luxembourg, Hong Kong, Singapore and the Bahamas. The Pictet Group operates two main business divisions: institutional asset management and private banking for individuals.
From 2008 to 2014, Pictet Group’s private banking division was operated by the group’s following banking entities: the Swiss bank (Banque Pictet & Cie SA); Pictet & Cie (Europe) SA, headquartered in Luxembourg; Bank Pictet & Cie (Asia) Ltd. in Singapore and the Bahamian bank, Pictet Bank & Trust Ltd. The Pictet Group provided offshore corporation and trust formation and administration services to certain U.S. taxpayers, first through the Estate Planning and Trust Services unit and later through a wholly owned subsidiary called Rhone Trust and Fiduciary Services SA (Rhone).
As of Dec. 31, 2014, the Pictet Group’s private banking division managed or held custody of approximately $165 billion in assets under management (AUM). From 2008 to 2014, the Pictet Group served approximately 3,736 private accounts that had U.S. taxpayers as beneficial owners, whose aggregate maximum AUM, including declared assets, was approximately $20 billion.
Though Pictet Group adopted early measures to confirm that U.S. clients complied with U.S. law, from 2008 through 2014, the Pictet Group assisted certain U.S. taxpayer-clients with Pictet Group accounts in evading their U.S. tax obligations and otherwise hiding undeclared accounts[1] from the IRS.
In total, from 2008 through 2014, the Pictet Group held 1,637 U.S. Penalty Accounts[2] with aggregate maximum AUM of approximately $5.6 billion in January 2008, on behalf of U.S. taxpayer-clients, who collectively evaded approximately $50.6 million in U.S. taxes.
The Pictet Group assisted U.S. taxpayer-clients with evading their U.S. taxes by opening and maintaining undeclared accounts for U.S. taxpayer-clients at the Pictet Group, either directly or through external asset managers. The Pictet Group also maintained accounts of certain U.S. taxpayer-clients within the Pictet Group in a manner that allowed the U.S. taxpayer-clients to further conceal their undeclared accounts from the IRS. The Pictet Group and certain of its employees knew or should have known that some of their U.S. taxpayer-clients were evading U.S. taxes. In every instance, managing partners approved the opening of new private client relationships and were informed of the closing of U.S. taxpayer-clients’ accounts, which included some undeclared accounts.
As further detailed below, the Pictet Group used a variety of means to assist U.S. taxpayer-clients in concealing their undeclared accounts, including by:
- forming or administering offshore entities in whose name the Pictet Group opened and maintained accounts, some of which were undeclared, for U.S. taxpayer-clients;
- opening and maintaining undeclared accounts in the names of offshore entities formed by others for U.S. taxpayer-clients;
- opening and maintaining Private Placement Life Insurance policy accounts, also called insurance wrappers, held in the name of insurance companies but beneficially owned by U.S. taxpayers and improperly managed or funded through undeclared accounts at the Pictet Group;
- transferring funds from undeclared U.S. taxpayer-client accounts to accounts nominally held by non-U.S. clients but still controlled by U.S. taxpayer-clients via fictitious donations, thus assisting U.S. taxpayer-clients in continuing to maintain undeclared funds offshore;
- providing traditional Swiss banking products such as hold-mail account services, where account-related mail is held at the bank rather than sent to the client, and coded or numbered accounts and
- accepting IRS Forms W-8BEN[3] or Pictet Group’s substitute forms that the group knew or should have known falsely stated or implied under penalty of perjury that offshore entities beneficially owned the assets in the undeclared accounts.
The $122.9 million Banque Pictet agreed to pay to the U.S. Treasury pursuant to the deferred prosecution agreement consists of (i) $52,164,201 to the United States, which represents gross fees (not profits) that the bank earned on its undeclared accounts between 2008 and 2014; (ii) $31,844,192 in restitution to the IRS, which represents the unpaid taxes resulting from Banque Pictet’s participation in the conspiracy and (iii) a $38,950,998 penalty. The penalty considers the nature and seriousness of the Pictet Group's conduct, the Bank’s extensive internal investigation, the Bank’s substantial provision of documents to the Justice Department, and the Bank’s facilitation of witness interviews. The Bank further implemented remedial measures to protect against the use of its services for future tax evasion.
In addition to the payment, Banque Pictet also agrees under the deferred prosecution agreement to accept responsibility for its conduct by stipulating to the accuracy of an extensive statement of facts. Banque Pictet further agreed to refrain from all future criminal conduct, implement remedial measures and cooperate fully with further investigations into hidden bank accounts. Specifically, the Bank is required to cooperate fully with ongoing investigations and affirmatively disclose any information it may later uncover regarding U.S.-related accounts. The Bank is also required to disclose information consistent with the Justice Department’s Swiss Bank Program relating to accounts closed between Jan. 1, 2008, and Dec. 31, 2022. The agreements provide no protection from criminal or civil prosecution for any individuals.
If Banque Pictet continues to comply with its agreement, the United States has agreed to defer prosecution of Banque Pictet for a period of three years, after which time the United States will seek to dismiss the charge against Banque Pictet.
Acting Deputy Assistant Attorney for Criminal Matters General Stuart M. Goldberg of the Justice Department’s Tax Division, U.S. Attorney Damian Williams for the Southern District of New York and Chief Jim Lee of the IRS Criminal Investigation made the announcement.
Acting Deputy Assistant Attorney General Goldberg and U.S. Attorney Williams praised the outstanding investigative work of the special agents of IRS Criminal Investigation.
Senior Litigation Counsel Nanette Davis of the Tax Division and Assistant U.S. Attorneys Daniel G. Nessim and Olga Zverovich for the Southern District of New York are prosecuting the case.
[1] An “undeclared account” was a financial account beneficially owned by an individual subject to U.S. tax obligations and maintained in a foreign country that had not been reported by the individual account owner to the U.S. Government on an income tax return or an FBAR—a Report of Foreign Bank and Financial Accounts, FinCEN Form 114 (formerly known as Form TD F 90 22.1).
[2] “U.S. Penalty Accounts” are defined as U.S. accounts valued over $50,000 that the parties agree should be subject to a penalty for the offense conduct.
[3] The IRS Form W-8BEN is a tax form that identifies the foreign status of non-U.S. persons for U.S. tax withholding purposes.
Former FBI Agent Trainee Pleads Guilty to Insider Trading SchemeRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced today the guilty plea of SETH MARKIN in connection with his participation in a scheme to trade in stock of Pandion Therapeutics (“Pandion”) based on inside information that he misappropriated from his then-girlfriend, who was an attorney at a major law firm assigned to work on the acquisition of Pandion by Merck & Co. (“Merck”). MARKIN was arrested in July 2022 and pled guilty to securities fraud based on insider trading before U.S. District Judge Edgardo Ramos.
U.S. Attorney Damian Williams said: “Seth Markin, who had been accepted into the Federal Bureau of Investigation as a new agent trainee, chose to act as if the law did not apply to him when he misappropriated confidential information, traded based on that information, and tipped several friends and family members, resulting in millions of dollars of illegally obtained trading profits. Markin knew his actions were wrong, deleted evidence of his crimes, and lied to try to cover up his scheme. No one is above the law, and this Office’s commitment to protecting the integrity of the financial markets remains a priority.”
As alleged in the Indictment, other public court documents, and statements made during court proceedings:
In early 2021, SETH MARKIN and BRANDON WONG together made more than $1.4 million in illegal profits by trading in stock based on inside information that MARKIN stole from his then-girlfriend, who was at the time an attorney at a major law firm in Washington D.C. (the “Law Firm Associate”). At the time, MARKIN had been accepted into the Federal Bureau of Investigation (“FBI”) as a new agent trainee, and WONG was a systems analyst at an education company. In February 2021, MARKIN secretly looked through the Law Firm Associate’s confidential work documents, without her permission, and learned that, in a matter of weeks, Merck, a publicly traded pharmaceutical company, was going to acquire Pandion, a publicly traded biotechnology company, for approximately three times the value of Pandion’s share price. MARKIN immediately purchased Pandion stock on the basis of this material non-public information and also told several family members and friends to purchase Pandion’s stock, causing WONG, another friend, and several family members to do so, including Family Member-1, Family Member-2, Family Member-3, Family Member-4, and Friend-1. In text messages, MARKIN assured WONG that he was “not uncertain” that when the “news drop[ped]” about Pandion, the price would “EXPLODE” and they would earn “triple gains.”
WONG purchased hundreds of thousands of dollars’ worth of Pandion shares based on the material non-public information he received from MARKIN. In addition to his purchases of Pandion stock, WONG told at least seven other people to purchase Pandion shares, causing some of the people he tipped to purchase tens or hundreds of thousands of dollars’ worth of Pandion stock, including Family Member-5, Friend-2, Friend-3, Friend-4, Friend-5, Friend-6, and Friend-7.
In total, MARKIN and WONG together caused at least 20 people to trade in Pandion stock based on the material non-public information that MARKIN misappropriated from his girlfriend, resulting in millions of dollars of illegally obtained trading profits. To conceal their illegal insider trading scheme, MARKIN and WONG used an encrypted messaging application and deleted many of their text messages with each other. They also agreed on a cover story that they could provide to law enforcement, namely, that if they were asked how they anticipated Pandion’s stock price increase, they could say they “read it on Stocktwit,” in reference to a social media platform for sharing stock ideas, and falsely say that the news was “publicly being announced there.”
After Merck’s acquisition of Pandion was announced publicly, and the Pandion stockholdings of MARKIN and WONG, and those whom they tipped, significantly increased in value, the defendants sold their shares of Pandion for significant profits. With their illegal profits, the defendants and their tippees purchased luxury items and bought gifts for each other. For example, WONG purchased for MARKIN a Rolex watch valued at approximately $40,000, a trip to Hawaii, and a meal at a three-Michelin-starred restaurant in New York that cost more than $1,000. WONG also purchased a home in Florida.
Thereafter, MARKIN lied in order to hide his illegal insider trading. In or about June 2021, after MARKIN and the Law Firm Associate had ended their relationship, and as MARKIN was preparing to begin training as a new agent at the FBI Academy in Quantico, Virginia, the Law Firm Associate called MARKIN to ask why MARKIN’s name had come up in an inquiry by the Financial Industry Regulatory Authority into trading in Pandion stock. In response, MARKIN lied to the Law Firm Associate and falsely claimed that he did not trade in Pandion stock.
MARKIN subsequently took steps to further conceal his criminal activity. On November 18, 2021, Markin lied to FBI agents when he was interviewed about his Pandion trading. That day, Special Agents from the FBI interviewed MARKIN in connection with an investigation they told him was being conducted by law enforcement in the Southern District of New York relating to insider trading in Pandion stock. During the interview, MARKIN adhered to the fake cover story he and WONG had concocted and falsely told the agents (i) that he learned about Pandion on StockTwits, (ii) that he purchased the stock because of a recent earnings report and a new board member addition, and (iii) that he did not know that his former girlfriend worked on the Pandion transaction.
* * *
MARKIN, 32, of Washington Crossing, Pennsylvania, pled guilty to one count of securities fraud, which carries a maximum term of 20 years in prison.
WONG, 40, of New York, New York, pled guilty on April 10, 2023, to one count of securities fraud, which carries a maximum term of 20 years in prison.
BRIAN WONG, 45, of Secaucus, New Jersey, pled guilty on November 10, 2022, to being an accessory after the fact to conspiracy to commit securities fraud and tender offer fraud, which carries a maximum term of two and a half years in prison, and was sentenced on April 12, 2023, to three years’ probation with three months’ home confinement and forfeiture in the amount of $403,375.75.
JONATHAN BECKER, 34, of Weehawken, New Jersey, pled guilty on September 20, 2023, to one count of securities fraud, 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 defendants will be determined by a judge. MARKIN will be sentenced by Judge Ramos on March 13, 2024; WONG will be sentenced by Judge Ramos on January 26, 2024; and BECKER will be sentenced by Judge Ramos on December 19, 2023.
Mr. Williams praised the outstanding investigative work of the FBI and the Department of Justice’s Office of the Inspector General. Mr. Williams also thanked the U.S. Securities and Exchange Commission, which has filed parallel civil actions.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Kiersten A. Fletcher, Nicolas Roos, and Negar Tekeei are in charge of the prosecution.
ਨਿਆਂ ਵਿਭਾਗ ਨੇ ਨਿਊਯਾਰਕ ਸਿਟੀ ਵਿੱਚ ਅਮਰੀਕੀ ਨਾਗਰਿਕ ਦੀ ਹੱਤਿਆ ਦੀ ਅਸਫਲ ਸਾਜ਼ਿਸ਼ ਦੇ ਸਬੰਧ ਵਿੱਚ ਦੋਸ਼ਾਂ ਦਾ ਐਲਾਨ ਕੀਤਾRead the Press Release
ਅੱਜ ਨਿਊਯਾਰਕ ਦੇ ਦੱਖਣੀ ਜ਼ਿਲ੍ਹੇ ਵਿੱਚ, ਨਿਊਯਾਰਕ ਸਿਟੀ ਵਿੱਚ ਇੱਕ ਅਮਰੀਕੀ ਨਾਗਰਿਕ ਦੀ ਹੱਤਿਆ ਕਰਨ ਦੀ ਨਾਕਾਮ ਸਾਜ਼ਿਸ਼ ਵਿੱਚ ਭਾਗ ਲੈਣ ਦੇ ਸਬੰਧ ਵਿੱਚ ਭਾਰਤੀ ਨਾਗਰਿਕ ਨਿਖਿਲ ਗੁਪਤਾ ਉਰਫ਼ ਨਿਕ, 52, ਦੇ ਖਿਲਾਫ ਕਿਰਾਏ ਦੇ ਲਈ ਕਤਲ ਦੇ ਦੋਸ਼ਾਂ ਵਿੱਚ ਇੱਕ ਪਰਤੱਖ ਮੁਕੱਦਮਾ ਅਣ-ਸੀਲ ਕਰ ਦਿੱਤਾ ਗਿਆ। ਚੈੱਕ ਅਧਿਕਾਰੀਆਂ ਨੇ ਸੰਯੁਕਤ ਰਾਜ ਅਤੇ ਚੈੱਕ ਗਣਰਾਜ ਵਿਚਕਾਰ ਦੁਵੱਲੀ ਹਵਾਲਗੀ ਸੰਧੀ ਦੇ ਅਨੁਸਾਰ 30 ਜੂਨ, 2023 ਨੂੰ ਗੁਪਤਾ ਨੂੰ ਗ੍ਰਿਫਤਾਰ ਕੀਤਾ ਅਤੇ ਨਜ਼ਰਬੰਦ ਕੀਤਾ।
ਅਦਾਲਤੀ ਦਸਤਾਵੇਜ਼ਾਂ ਦੇ ਅਨੁਸਾਰ, ਇਸ ਸਾਲ ਦੇ ਸ਼ੁਰੂ ਵਿੱਚ, ਇੱਕ ਭਾਰਤੀ ਸਰਕਾਰੀ ਕਰਮਚਾਰੀ (CC-1), ਭਾਰਤ ਵਿੱਚ ਅਤੇ ਹੋਰ ਥਾਵਾਂ 'ਤੇ ਗੁਪਤਾ ਸਮੇਤ ਹੋਰਾਂ ਨਾਲ ਮਿਲ ਕੇ ਕੰਮ ਕਰ ਰਿਹਾ ਸੀ, ਨੇ ਅਮਰੀਕਾ ਦੀ ਧਰਤੀ 'ਤੇ ਇੱਕ ਅਟਾਰਨੀ ਅਤੇ ਰਾਜਨੀਤਿਕ ਕਾਰਕੁਨ ਜੋ ਕਿ ਇੱਕ ਅਮਰੀਕੀ ਨਾਗਰਿਕ ਹੈ, ਦੀ ਹੱਤਿਆ ਕਰਨ ਦੀ ਸਾਜ਼ਿਸ਼ ਰਚੀ ਸੀ। ਨਿਊਯਾਰਕ ਸਿਟੀ (ਪੀੜਤ) ਵਿੱਚ ਰਹਿਣ ਵਾਲੇ ਭਾਰਤੀ ਮੂਲ ਦੇ।
ਗੁਪਤਾ ਇੱਕ ਭਾਰਤੀ ਨਾਗਰਿਕ ਹੈ ਜੋ ਭਾਰਤ ਵਿੱਚ ਰਹਿੰਦਾ ਹੈ, CC-1 ਦਾ ਇੱਕ ਸਹਿਯੋਗੀ ਹੈ ਅਤੇ ਉਸਨੇ CC-1 ਅਤੇ ਹੋਰਾਂ ਨਾਲ ਆਪਣੇ ਸੰਚਾਰ ਵਿੱਚ ਅੰਤਰਰਾਸ਼ਟਰੀ ਨਸ਼ੀਲੇ ਪਦਾਰਥਾਂ ਅਤੇ ਹਥਿਆਰਾਂ ਦੀ ਤਸਕਰੀ ਵਿੱਚ ਆਪਣੀ ਸ਼ਮੂਲੀਅਤ ਦਾ ਵਰਣਨ ਕੀਤਾ ਹੈ। CC-1 ਇੱਕ ਭਾਰਤੀ ਸਰਕਾਰੀ ਏਜੰਸੀ ਦਾ ਕਰਮਚਾਰੀ ਹੈ ਜਿਸਨੇ ਆਪਣੇ ਆਪ ਨੂੰ "ਸੁਰੱਖਿਆ ਪ੍ਰਬੰਧਨ" ਅਤੇ "ਖੁਫੀਆ" ਵਿੱਚ ਜ਼ਿੰਮੇਵਾਰੀਆਂ ਦੇ ਨਾਲ "ਸੀਨੀਅਰ ਫੀਲਡ ਅਫਸਰ" ਵਜੋਂ ਦਰਸਾਇਆ ਹੈ ਅਤੇ ਜਿਸਨੇ ਪਹਿਲਾਂ ਭਾਰਤ ਦੇ ਕੇਂਦਰੀ ਰਿਜ਼ਰਵ ਪੁਲਿਸ ਬਲ ਵਿੱਚ ਸੇਵਾ ਕਰਨ ਅਤੇ "ਅਧਿਕਾਰੀ" ਪ੍ਰਾਪਤ ਕਰਨ ਦਾ ਹਵਾਲਾ ਦਿੱਤਾ ਹੈ। "ਲੜਾਈ ਕਰਾਫਟ" ਅਤੇ "ਹਥਿਆਰਾਂ" ਵਿੱਚ [] ਸਿਖਲਾਈ”। CC-1 ਨੇ ਭਾਰਤ ਤੋਂ ਹੱਤਿਆ ਦੀ ਸਾਜ਼ਿਸ਼ ਰਚੀ ਸੀ।
ਮਈ 2023 ਵਿੱਚ ਜਾਂ ਲਗਭਗ, CC-1 ਨੇ ਸੰਯੁਕਤ ਰਾਜ ਅਮਰੀਕਾ ਵਿੱਚ ਪੀੜਤ ਦੀ ਹੱਤਿਆ ਨੂੰ ਅੰਜਾਮ ਦੇਣ ਲਈ ਗੁਪਤਾ ਨੂੰ ਭਰਤੀ ਕੀਤਾ। ਪੀੜਤ ਭਾਰਤ ਸਰਕਾਰ ਦਾ ਇੱਕ ਵੋਕਲ ਆਲੋਚਕ ਹੈ ਅਤੇ ਇੱਕ ਯੂਐਸ-ਅਧਾਰਤ ਸੰਗਠਨ ਦੀ ਅਗਵਾਈ ਕਰਦਾ ਹੈ ਜੋ ਪੰਜਾਬ ਦੇ ਵੱਖ ਹੋਣ ਦੀ ਵਕਾਲਤ ਕਰਦਾ ਹੈ, ਉੱਤਰੀ ਭਾਰਤ ਦਾ ਇੱਕ ਰਾਜ ਜੋ ਸਿੱਖਾਂ ਦੀ ਇੱਕ ਵੱਡੀ ਆਬਾਦੀ, ਭਾਰਤ ਵਿੱਚ ਇੱਕ ਨਸਲੀ ਧਾਰਮਿਕ ਘੱਟ ਗਿਣਤੀ ਸਮੂਹ ਦਾ ਘਰ ਹੈ। ਪੀੜਤ ਨੇ ਜਨਤਕ ਤੌਰ 'ਤੇ ਕੁਝ ਜਾਂ ਸਾਰੇ ਪੰਜਾਬ ਨੂੰ ਭਾਰਤ ਤੋਂ ਵੱਖ ਕਰਨ ਅਤੇ ਖਾਲਿਸਤਾਨ ਨਾਮਕ ਸਿੱਖ ਪ੍ਰਭੂਸੱਤਾ ਸੰਪੰਨ ਰਾਜ ਸਥਾਪਤ ਕਰਨ ਲਈ ਕਿਹਾ ਹੈ, ਅਤੇ ਭਾਰਤ ਸਰਕਾਰ ਨੇ ਵਿਕਟਿਮ ਅਤੇ ਉਸਦੀ ਵੱਖਵਾਦੀ ਸੰਗਠਨ 'ਤੇ ਭਾਰਤ ਤੋਂ ਪਾਬੰਦੀ ਲਗਾ ਦਿੱਤੀ ਹੈ।
CC-1 ਦੇ ਨਿਰਦੇਸ਼ਾਂ 'ਤੇ, ਗੁਪਤਾ ਨੇ ਇੱਕ ਵਿਅਕਤੀ ਨਾਲ ਸੰਪਰਕ ਕੀਤਾ ਜਿਸਨੂੰ ਗੁਪਤਾ ਇੱਕ ਅਪਰਾਧਿਕ ਸਹਿਯੋਗੀ ਮੰਨਦਾ ਸੀ, ਪਰ ਜੋ ਅਸਲ ਵਿੱਚ ਇੱਕ ਗੁਪਤ ਸਰੋਤ ਸੀ ਜੋ ਯੂਐਸ ਡਰੱਗ ਇਨਫੋਰਸਮੈਂਟ ਐਡਮਿਨਿਸਟ੍ਰੇਸ਼ਨ (ਡੀਈਏ) (CS) ਨਾਲ ਕੰਮ ਕਰ ਰਿਹਾ ਸੀ, ਇੱਕ ਹਿੱਟਮੈਨ ਨੂੰ ਕਤਲ ਕਰਨ ਲਈ ਇਕਰਾਰਨਾਮੇ ਵਿੱਚ ਸਹਾਇਤਾ ਲਈ। ਨਿਊਯਾਰਕ ਸਿਟੀ ਵਿੱਚ ਪੀੜਤ। CS ਨੇ ਗੁਪਤਾ ਦੀ ਜਾਣ-ਪਛਾਣ ਇੱਕ ਕਥਿਤ ਹਿੱਟਮੈਨ ਨਾਲ ਕਰਵਾਈ, ਜੋ ਅਸਲ ਵਿੱਚ ਡੀਈਏ ਅੰਡਰਕਵਰ ਅਫਸਰ (UC) ਸੀ। CC-1 ਨੇ ਬਾਅਦ ਵਿੱਚ ਪੀੜਤ ਦੀ ਹੱਤਿਆ ਕਰਨ ਲਈ UC $100,000 ਦਾ ਭੁਗਤਾਨ ਕਰਨ ਲਈ ਗੁਪਤਾ ਦੁਆਰਾ ਦਲਾਲ ਸੌਦੇ ਵਿੱਚ ਸਹਿਮਤੀ ਦਿੱਤੀ। 9 ਜੂਨ ਨੂੰ ਜਾਂ ਇਸ ਦੇ ਲਗਭਗ, CC-1 ਅਤੇ ਗੁਪਤਾ ਨੇ ਕਤਲ ਲਈ ਪੇਸ਼ਗੀ ਭੁਗਤਾਨ ਵਜੋਂ UC ਨੂੰ $15,000 ਨਕਦ ਦੇਣ ਲਈ ਇੱਕ ਸਹਿਯੋਗੀ ਦਾ ਪ੍ਰਬੰਧ ਕੀਤਾ। CC-1 ਦੇ ਸਹਿਯੋਗੀ ਨੇ ਫਿਰ ਮੈਨਹਟਨ ਵਿੱਚ UC ਨੂੰ $15,000 ਡਿਲੀਵਰ ਕੀਤਾ।
ਜੂਨ 2023 ਵਿੱਚ ਜਾਂ ਇਸ ਦੇ ਆਸ-ਪਾਸ, ਕਤਲ ਦੀ ਸਾਜ਼ਿਸ਼ ਨੂੰ ਅੱਗੇ ਵਧਾਉਣ ਲਈ, CC-1 ਨੇ ਗੁਪਤਾ ਨੂੰ ਪੀੜਤ ਬਾਰੇ ਨਿੱਜੀ ਜਾਣਕਾਰੀ ਪ੍ਰਦਾਨ ਕੀਤੀ, ਜਿਸ ਵਿੱਚ ਨਿਊਯਾਰਕ ਸਿਟੀ ਵਿੱਚ ਪੀੜਤ ਦੇ ਘਰ ਦਾ ਪਤਾ, ਪੀੜਤ ਨਾਲ ਜੁੜੇ ਫ਼ੋਨ ਨੰਬਰ, ਅਤੇ ਵਿਕਟਿਮ ਦੇ ਡੇ-ਟੂ ਬਾਰੇ ਵੇਰਵੇ ਸ਼ਾਮਲ ਸਨ। ਦਿਨ ਦਾ ਆਚਰਣ, ਜਿਸ ਨੂੰ ਗੁਪਤਾ ਨੇ ਫਿਰ UC ਨੂੰ ਦਿੱਤੀ। CC-1 ਨੇ ਗੁਪਤਾ ਨੂੰ ਹੱਤਿਆ ਦੀ ਸਾਜ਼ਿਸ਼ ਦੀ ਪ੍ਰਗਤੀ ਬਾਰੇ ਨਿਯਮਤ ਅੱਪਡੇਟ ਪ੍ਰਦਾਨ ਕਰਨ ਦਾ ਨਿਰਦੇਸ਼ ਦਿੱਤਾ, ਜਿਸ ਨੂੰ ਗੁਪਤਾ ਨੇ ਪੀੜਤ ਦੀਆਂ ਨਿਗਰਾਨੀ ਵਾਲੀਆਂ ਤਸਵੀਰਾਂ ਦੇ ਨਾਲ-ਨਾਲ CC-1 ਨੂੰ ਅੱਗੇ ਭੇਜ ਕੇ ਪੂਰਾ ਕੀਤਾ। ਗੁਪਤਾ ਨੇ UC ਨੂੰ ਇਸ ਕਤਲ ਨੂੰ ਜਲਦੀ ਤੋਂ ਜਲਦੀ ਅੰਜਾਮ ਦੇਣ ਦੇ ਨਿਰਦੇਸ਼ ਦਿੱਤੇ, ਪਰ ਗੁਪਤਾ ਨੇ UC ਨੂੰ ਇਹ ਵੀ ਵਿਸ਼ੇਸ਼ ਤੌਰ 'ਤੇ ਨਿਰਦੇਸ਼ ਦਿੱਤਾ ਕਿ ਉਹ ਉੱਚ ਪੱਧਰੀ ਅਮਰੀਕੀ ਅਤੇ ਭਾਰਤ ਸਰਕਾਰ ਦੇ ਅਧਿਕਾਰੀਆਂ ਵਿਚਕਾਰ ਆਉਣ ਵਾਲੇ ਹਫ਼ਤਿਆਂ ਵਿੱਚ ਹੋਣ ਵਾਲੇ ਅਨੁਮਾਨਿਤ ਰੁਝੇਵਿਆਂ ਦੇ ਸਮੇਂ ਦੇ ਆਲੇ-ਦੁਆਲੇ ਕਤਲ ਨਾ ਕਰਨ।
18 ਜੂਨ ਜਾਂ ਇਸ ਤਰੀਕ ਨੂੰ, ਕੈਨੇਡਾ ਦੇ ਬ੍ਰਿਟਿਸ਼ ਕੋਲੰਬੀਆ ਵਿੱਚ ਇੱਕ ਸਿੱਖ ਮੰਦਰ ਦੇ ਬਾਹਰ ਨਕਾਬਪੋਸ਼ ਬੰਦੂਕਧਾਰੀਆਂ ਨੇ ਹਰਦੀਪ ਸਿੰਘ ਨਿੱਝਰ ਦਾ ਕਤਲ ਕਰ ਦਿੱਤਾ। ਨਿੱਝਰ ਵਿਕਟਿਮ ਦਾ ਸਹਿਯੋਗੀ ਸੀ, ਅਤੇ ਵਿਕਟਿਮ ਵਾਂਗ, ਸਿੱਖ ਵੱਖਵਾਦੀ ਲਹਿਰ ਦਾ ਆਗੂ ਅਤੇ ਭਾਰਤ ਸਰਕਾਰ ਦਾ ਸਪੱਸ਼ਟ ਆਲੋਚਕ ਸੀ। ਨਿੱਝਰ ਦੇ ਕਤਲ ਤੋਂ ਅਗਲੇ ਦਿਨ 19 ਜੂਨ ਨੂੰ ਜਾਂ ਲਗਭਗ, ਗੁਪਤਾ ਨੇ UC ਨੂੰ ਦੱਸਿਆ ਕਿ ਨਿੱਝਰ ਵੀ "ਨਿਸ਼ਾਨਾ ਸੀ" ਅਤੇ "ਸਾਡੇ ਬਹੁਤ ਸਾਰੇ ਨਿਸ਼ਾਨੇ ਹਨ।" ਗੁਪਤਾ ਨੇ ਅੱਗੇ ਕਿਹਾ ਕਿ, ਨਿੱਝਰ ਦੇ ਕਤਲ ਦੇ ਮੱਦੇਨਜ਼ਰ, ਪੀੜਤ ਨੂੰ ਮਾਰਨ ਲਈ "ਹੁਣ ਇੰਤਜ਼ਾਰ ਕਰਨ ਦੀ ਕੋਈ ਲੋੜ ਨਹੀਂ" ਸੀ। 20 ਜੂਨ ਨੂੰ ਜਾਂ ਇਸ ਦੇ ਲਗਭਗ, CC-1 ਨੇ ਗੁਪਤਾ ਨੂੰ ਪੀੜਤ ਬਾਰੇ ਇੱਕ ਖ਼ਬਰ ਭੇਜੀ ਅਤੇ ਗੁਪਤਾ ਨੂੰ ਸੁਨੇਹਾ ਦਿੱਤਾ, "[i] ਹੁਣ [a] ਤਰਜੀਹ ਹੈ”।
ਗੁਪਤਾ 'ਤੇ ਕਿਰਾਏ 'ਤੇ ਕਤਲ ਕਰਨ ਅਤੇ ਕਿਰਾਏ 'ਤੇ ਕਤਲ ਕਰਨ ਦੀ ਸਾਜ਼ਿਸ਼ ਰਚਣ ਦਾ ਦੋਸ਼ ਹੈ। ਹਰੇਕ ਗਿਣਤੀ ਵਿੱਚ 10 ਸਾਲ ਦੀ ਕੈਦ ਦੀ ਅਧਿਕਤਮ ਕਾਨੂੰਨੀ ਸਜ਼ਾ ਹੈ। ਇੱਕ ਸੰਘੀ ਜ਼ਿਲ੍ਹਾ ਅਦਾਲਤ ਦਾ ਜੱਜ ਯੂ.ਐੱਸ. ਸਜ਼ਾ ਸੁਣਾਉਣ ਦੇ ਦਿਸ਼ਾ-ਨਿਰਦੇਸ਼ਾਂ ਅਤੇ ਹੋਰ ਕਾਨੂੰਨੀ ਕਾਰਕਾਂ 'ਤੇ ਵਿਚਾਰ ਕਰਨ ਤੋਂ ਬਾਅਦ ਕੋਈ ਵੀ ਸਜ਼ਾ ਨਿਰਧਾਰਤ ਕਰੇਗਾ।
ਡੀਈਏ ਦੀ ਨਿਊਯਾਰਕ ਡਿਵੀਜ਼ਨ ਅਤੇ ਐਫਬੀਆਈ ਦੇ ਨਿਊਯਾਰਕ ਫੀਲਡ ਆਫਿਸ ਦੀ ਕਾਊਂਟਰ ਇੰਟੈਲੀਜੈਂਸ ਡਿਵੀਜ਼ਨ, ਡੀਈਏ ਦੇ ਸਪੈਸ਼ਲ ਓਪਰੇਸ਼ਨ ਡਿਵੀਜ਼ਨ, ਡੀਈਏ ਦੇ ਵਿਏਨਾ ਕੰਟਰੀ ਆਫਿਸ, ਐਫਬੀਆਈ ਦੇ ਪ੍ਰਾਗ ਕੰਟਰੀ ਆਫਿਸ, ਅੰਤਰਰਾਸ਼ਟਰੀ ਮਾਮਲਿਆਂ ਦੇ ਨਿਆਂ ਵਿਭਾਗ ਦੇ ਦਫਤਰ, ਅਤੇ ਚੈੱਕ ਗਣਰਾਜ ਦਾ ਰਾਸ਼ਟਰੀ ਡਰੱਗ ਹੈੱਡਕੁਆਰਟਰ।
ਨਿਊਯਾਰਕ ਦੇ ਦੱਖਣੀ ਜ਼ਿਲ੍ਹੇ ਲਈ ਸਹਾਇਕ ਯੂਐਸ ਅਟਾਰਨੀ ਕੈਮਿਲ ਐਲ. ਫਲੈਚਰ, ਐਸ਼ਲੇ ਸੀ. ਨਿਕੋਲਸ ਅਤੇ ਅਲੈਗਜ਼ੈਂਡਰ ਲੀ ਰਾਸ਼ਟਰੀ ਸੁਰੱਖਿਆ ਡਿਵੀਜ਼ਨ ਦੇ ਕਾਊਂਟਰ ਇੰਟੈਲੀਜੈਂਸ ਅਤੇ ਐਕਸਪੋਰਟ ਕੰਟਰੋਲ ਸੈਕਸ਼ਨ ਦੇ ਟ੍ਰਾਇਲ ਅਟਾਰਨੀ ਕ੍ਰਿਸਟੋਫਰ ਕੁੱਕ ਅਤੇ ਰਾਬਰਟ ਮੈਕੁਲਰਸ ਦੀ ਸਹਾਇਤਾ ਨਾਲ ਕੇਸ ਦੀ ਪੈਰਵੀ ਕਰ ਰਹੇ ਹਨ। ਟ੍ਰਾਇਲ ਅਟਾਰਨੀ ਏ.ਜੇ. ਰਾਸ਼ਟਰੀ ਸੁਰੱਖਿਆ ਡਿਵੀਜ਼ਨ ਦੇ ਅੱਤਵਾਦ ਵਿਰੋਧੀ ਸੈਕਸ਼ਨ ਦੇ ਡਿਕਸਨ।
ਇਲਜ਼ਾਮ ਸਿਰਫ਼ ਇਲਜ਼ਾਮ ਹੈ। ਸਾਰੇ ਬਚਾਓ ਪੱਖ ਉਦੋਂ ਤੱਕ ਨਿਰਦੋਸ਼ ਮੰਨੇ ਜਾਂਦੇ ਹਨ ਜਦੋਂ ਤੱਕ ਕਨੂੰਨ ਦੀ ਅਦਾਲਤ ਵਿੱਚ ਵਾਜਬ ਸ਼ੱਕ ਤੋਂ ਪਰੇ ਦੋਸ਼ੀ ਸਾਬਤ ਨਹੀਂ ਹੋ ਜਾਂਦਾ।
ਨਿਖਿਲ ਗੁਪਤਾ ਨੂੰ ਸੁਪਰਸਾਈਡਿੰਗ ਇਲਜ਼ਾਮ
न्याय विभाग ने न्यूयॉर्क शहर में अमेरिकी नागरिक की हत्या की नाकाम साजिश के संबंध में आरोपों की घोषणा कीRead the Press Release
आज न्यूयॉर्क के दक्षिणी जिले में, 52 वर्षीय भारतीय नागरिक निखिल गुप्ता उर्फ निक के विरुद्ध भाड़े-पर-हत्या का आरोप लगाते हुए एक अभियोग पत्र खोला गया। यह आरोप न्यूयॉर्क शहर में एक अमेरिकी नागरिक की हत्या की नाकाम साजिश में उसकी भागीदारी के संबंध में लगाया गया है। चेक अधिकारियों ने संयुक्त राज्य अमेरिका और चेक गणराज्य के बीच द्विपक्षीय प्रत्यर्पण संधि के अनुसार 30 जून, 2023 को गुप्ता को गिरफ्तार कर लिया और हिरासत में ले लिया।
अदालती दस्तावेजों के अनुसार, इस वर्ष के प्रारंभ में, एक भारतीय सरकारी कर्मचारी (CC-1) ने भारत और अन्य स्थानों पर गुप्ता सहित अन्य लोगों के साथ मिलकर, अमेरिकी धरती पर एक वकील और राजनीतिक कार्यकर्ता की हत्या की निर्देश दिया, जो न्यूयॉर्क शहर में रहने वाला भारतीय मूल का अमेरिकी नागरिक था (पीड़ित)।
गुप्ता एक भारतीय नागरिक है जो भारत में रहता है, CC-1 का सहयोगी है और उसने CC-1 तथा अन्य के साथ अपने संचार में अंतर्राष्ट्रीय मादक पदार्थों और हथियारों की तस्करी में अपनी संलिप्तता का उल्लेख किया है। CC-1 एक भारतीय सरकारी एजेंसी का कर्मचारी है, जिसने खुद को “वरिष्ठ फील्ड अधिकारी” के रूप में वर्णित किया है, जिसकी जिम्मेदारियाँ “सुरक्षा प्रबंधन” और “खुफिया” हैं, और जिसने पहले भारत के केंद्रीय रिजर्व पुलिस बल में सेवा करने और “युद्ध शिल्प” और “हथियारों” में “अधिकारी प्रशिक्षण” प्राप्त करने का भी उल्लेख किया है। CC-1 ने भारत से हत्या की साजिश का निर्देशन किया था।
मई 2023 के आसपास, CC-1 ने संयुक्त राज्य अमेरिका में पीड़ित की हत्या की योजना बनाने के लिए गुप्ता को भर्ती किया। पीड़ितभारत सरकार का मुखर आलोचक है और एक अमेरिकी संगठन का नेतृत्व करता है जो पंजाब के अलगाव की वकालत करता है। पंजाब उत्तर भारत का एक राज्य है, जहां सिखों की एक बड़ी आबादी रहती है, जो भारत में एक जातीय-धार्मिक अल्पसंख्यक समूह है। पीड़ित ने सार्वजनिक रूप से पंजाब के कुछ या पूरे हिस्से को भारत से अलग करने और खालिस्तान नामक एक सिख संप्रभु राज्य की स्थापना करने की मांग की है, और भारत सरकार ने पीड़ित और उसके अलगाववादी संगठन पर भारत में प्रतिबंध लगा दिया है।
CC-1 के निर्देश पर, गुप्ता ने एक व्यक्ति से संपर्क किया, जिसके बारे में गुप्ता का मानना था कि वह एक आपराधिक सहयोगी है, लेकिन वास्तव में वह यू.एस. ड्रग प्रवर्तन प्रशासन (DEA) (CS) के साथ काम करने वाला एक गोपनीय स्रोत (CS) था, ताकि न्यूयॉर्क शहर में पीड़ित की हत्या करने के लिए एक हत्यारे को अनुबंधित करने में सहायता मिल सके। CS ने गुप्ता को एक कथित हिटमैन से मिलवाया, जो वास्तव में DEA का एक गोपनीय स्रोत अधिकारी (UC) था। इसके बाद CC-1 ने गुप्ता द्वारा मध्यस्थता किए गए सौदों में पीड़ित की हत्या के लिए UC को 100,000 डॉलर का भुगतान करने पर सहमति व्यक्त की। 9 जून के आसपास, CC-1 और गुप्ता ने एक सहयोगी के माध्यम से हत्या के लिए अग्रिम भुगतान के रूप में UC को 15,000 डॉलर नकद पहुंचाने की व्यवस्था की। इसके बाद CC-1 के सहयोगी ने मैनहट्टन स्थित UC को 15,000 डॉलर की राशि पहुंचा दी।
जून 2023 में या उसके आसपास, हत्या की साजिश को आगे बढ़ाने के लिए, CC-1 ने गुप्ता को पीड़ित के बारे में व्यक्तिगत जानकारी प्रदान की, जिसमें न्यूयॉर्क शहर में पीड़ित का घर का पता, पीड़ित से जुड़े फोन नंबर और पीड़ित के दिन-प्रतिदिन के आचरण के बारे में विवरण शामिल थे, जिसे गुप्ता ने फिर UC को दे दिया। CC-1 ने गुप्ता को हत्या की साजिश की प्रगति पर नियमित अपडेट प्रदान करने का निर्देश दिया, जिसे गुप्ता ने अन्य चीजों के अलावा, पीड़ित की निगरानी तस्वीरें CC-1 को भेजकर पूरा किया। गुप्ता ने UC को यथाशीघ्र हत्या को अंजाम देने का निर्देश दिया, लेकिन गुप्ता ने UC को यह भी स्पष्ट निर्देश दिया कि वह उच्च-स्तरीय अमेरिकी और भारतीय सरकारी अधिकारियों के बीच आगामी सप्ताहों में होने वाली संभावित बैठकों के समय के आसपास हत्या न की जाए ।
18 जून के आसपास, नकाबपोश बंदूकधारियों ने कनाडा के ब्रिटिश कोलंबिया में एक सिख मंदिर के बाहर हरदीप सिंह निज्जर की हत्या कर दी। निज्जर पीड़ित का सहयोगी था और पीड़ित की तरह ही सिख अलगाववादी आंदोलन का नेता तथा भारत सरकार का मुखर आलोचक था। निज्जर की हत्या के अगले दिन यानी 19 जून को गुप्ता ने UC को बताया कि निज्जर भी “लक्ष्य था” और “हमारे पास बहुत सारे लक्ष्य हैं।” गुप्ता ने कहा कि निज्जर की हत्या के मद्देनजर, पीड़ित को मारने के लिए अब “इंतजार करने की कोई जरूरत नहीं है।” 20 जून के आसपास, CC-1 ने गुप्ता को पीड़िता के बारे में एक समाचार लेख भेजा और गुप्ता को संदेश दिया, "यह अब [एक] प्राथमिकता है।"
गुप्ता पर भाड़े-पर-हत्या करने और भाड़े-पर-हत्या की साजिश रचने का आरोप है। प्रत्येक मामले में अधिकतम 10 वर्ष की जेल की वैधानिक सजा का प्रावधान है। संघीय जिला न्यायालय का न्यायाधीश अमेरिकी सजा संबंधी दिशानिर्देशों और अन्य वैधानिक कारकों पर विचार करने के बाद ही कोई सजा निर्धारित करेगा।
DEA का न्यूयॉर्क प्रभाग और FBI के न्यूयॉर्क फील्ड ऑफिस का काउंटरइंटेलिजेंस प्रभाग मामले की जांच कर रहे हैं, जिसमें DEA के विशेष ऑपरेशन प्रभाग, DEA के वियना कंट्री ऑफिस, FBI के प्राग कंट्री ऑफिस, न्याय विभाग के अंतर्राष्ट्रीय मामलों के कार्यालय और चेक गणराज्य के राष्ट्रीय ड्रग मुख्यालय द्वारा बहुमूल्य सहायता प्रदान की गई है।
सहायक अमेरिकी अटॉर्नी केमिली एल. फ्लेचर, एशले सी. निकोलस, और अलेक्जेंडर ली, दक्षिणी जिला न्यूयॉर्क के लिए राष्ट्रीय सुरक्षा प्रभाग के प्रति-खुफिया और निर्यात नियंत्रण अनुभाग के ट्रायल अटॉर्नी क्रिस्टोफर कुक और रॉबर्ट मैककुलर्स के साथ-साथ राष्ट्रीय सुरक्षा प्रभाग के आतंकवाद-रोधी अनुभाग के ट्रायल अटॉर्नी ए.जे. डिक्सन की सहायता से मामले पर मुकदमा चला रहे हैं।
अभियोग केवल एक आरोप है। सभी प्रतिवादियों को तब तक निर्दोष माना जाता है जब तक कि उन्हें न्यायालय में उचित संदेह से परे दोषी साबित नहीं कर दिया जाता है।
निखिल गुप्ता पर अभियोग हटाया गया
U.S. Attorney Announces Charges 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, Matthew G. Olsen, the Assistant Attorney General of the Justice Department’s National Security Division, Anne Milgram, the Administrator of the Drug Enforcement Administration (“DEA”), and James Smith, the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced the filing of murder-for-hire charges against Indian national NIKHIL GUPTA, a/k/a “Nick,” in connection with his participation in a foiled plot to assassinate a U.S. citizen in New York City. The charges are contained in a Superseding Indictment unsealed today in the U.S. District Court for the Southern District of New York. The case is pending before U.S. District Judge Victor Marrero. Czech authorities arrested and detained GUPTA on June 30, 2023, pursuant to the bilateral extradition treaty between the United States and the Czech Republic.
U.S. Attorney Damian Williams said: “As alleged, the defendant conspired from India to assassinate, right here in New York City, a U.S. citizen of Indian origin who has publicly advocated for the establishment of a sovereign state for Sikhs, an ethnoreligious minority group in India. I am grateful that my Office and our law enforcement partners neutralized this deadly and outrageous threat. We will not tolerate efforts to assassinate U.S. citizens on U.S. soil, and stand ready to investigate, thwart, and prosecute anyone who seeks to harm and silence Americans here or abroad.”
Assistant Attorney General Matthew G. Olsen said: “The dedicated law enforcement agents and prosecutors in this case foiled and exposed a dangerous plot to assassinate a U.S. citizen on U.S. soil. The Department of Justice will be relentless in using the full reach of our authorities to pursue accountability for lethal plotting emanating from overseas.”
DEA Administrator Anne Milgram said: “When a foreign government employee allegedly committed the brazen act of recruiting an international narcotics trafficker to murder a U.S. citizen on U.S. soil, DEA was there to stop the plot. I want to recognize the outstanding work of the DEA New York Field Division for their leadership in this investigation, the prosecution team at the U.S. Attorney’s Office in Manhattan for pursuing today’s indictment, and our federal and global law enforcement partners for their assistance.”
FBI Assistant Director in Charge James Smith said: “Murder for hire is a crime out of a movie, but the plot in this case was all too real. The excellent teamwork of the law enforcement partners in this case exposed this brazen conspiracy and is why Nikhil Gupta finds himself in jail waiting to answer to these charges.”
As alleged in the Superseding Indictment and other public court documents:[1]
Earlier this year, an Indian government employee (“CC-1”), 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”).
GUPTA is an Indian national who resides in India, is an associate of CC-1, and has described his involvement in international narcotics and weapons trafficking in his communications with CC-1 and others. CC-1 is an Indian government agency employee who has variously described himself as a “Senior Field Officer” with responsibilities in “Security Management” and “Intelligence,” and who also has referenced previously serving in India’s Central Reserve Police Force and receiving “officer[] training” in “battle craft” and “weapons.” CC-1 directed the assassination plot from India.
In or about May 2023, CC-1 recruited GUPTA to orchestrate the assassination of the Victim in the United States. 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.
At CC-1’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”). CC-1 subsequently agreed in dealings brokered by GUPTA to pay the UC $100,000 to murder the Victim. On or about June 9, 2023, CC-1 and GUPTA arranged for an associate to deliver $15,000 in cash to the UC as an advance payment for the murder. CC-1’s associate then delivered the $15,000 to the UC in Manhattan.
In or about June 2023, in furtherance of the assassination plot, CC-1 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. CC-1 directed GUPTA to provide regular updates on the progress of the assassination plot, which GUPTA accomplished by forwarding to CC-1, 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 anticipated engagements scheduled to occur in the ensuing weeks between high-level U.S. and Indian government officials.
On or about June 18, 2023, 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, CC-1 sent GUPTA a news article about the Victim and messaged GUPTA, “[i]t’s [a] priority now.”
* * *
GUPTA, 52, of India, has been charged with murder-for-hire, which carries a maximum sentence of 10 years in prison, and conspiracy to commit murder-for-hire, which carries a maximum sentence of 10 years in prison.
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.
Mr. Williams praised the outstanding 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 Attorneys Christopher Cook and Robert McCullers of the National Security Division’s Counterintelligence and Export Control Section, as well as Trial Attorney A.J. Dixon of the National Security Division’s Counterterrorism Section.
The charges contained in the Superseding Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Superseding Indictment and the description of the Superseding Indictment set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Texas Man Pleads Guilty to Sending Death ThreatsRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, and James Smith, the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today that JEREMY JOSEPH pled guilty to two counts of sending interstate threats to injure or kill two former co-workers. JOSEPH was indicted on this case on February 6, 2023, and arrested in Sarnia, Canada. JOSEPH pled guilty today before U.S. District Judge J. Paul Oetken only two days after his trial on the charges had begun. Sentencing is scheduled for March 14, 2024, before Judge Oetken.
U.S. Attorney Damian Williams said: “Jeremy Joseph terrified two former co-workers from a decade prior by repeatedly emailing them hateful, violent, and antisemitic death threats. No individual deserves to be at the receiving end of hateful threats or to be targeted because of their religion. This Office is committed to aggressively prosecuting hate crimes of all kinds and seeking justice for the victims of these offensive and harmful acts.”
FBI Assistant Director in Charge James Smith said: “Jeremy Joseph tracked down personal information on people he worked with years ago and threatened them with bombs and firearms. This along with his details of how he planned to kill the victims and their families was terrifying. Now he will answer to the judicial system for his actions.”
According to Indictment, statements made in public court proceedings and filings, and the evidence at trial:
From in or about December 2022 through at least in or about January 2023, JOSEPH sent emails with antisemitic death threats to two former colleagues (the “Victims”) with whom JOSEPH had worked more than a decade ago. The emails detailed how JOSEPH planned to murder his Victims and included photographs of pipe bombs, ammunition, and a firearm. The emails also included personal information about the Victims and their families.
JOSEPH’s threats toward the Victims were part of a larger pattern of death threats sent to various other individuals from JOSEPH’s life, as well as politicians, judges, and prosecutors. The targets of his threats spanned multiple countries and the U.S. In these communications, JOSEPH consistently used violent and threatening language that targeted Jewish people.
* * *
JOSEPH, 41, of Houston, Texas, pled guilty to two counts of sending interstate threats to injure or kill another person, which each carry a maximum sentence of five years in prison.
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
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 Jamie Bagliebter and Diarra Guthrie, with the assistance of Paralegal Specialist Isabel Loftus, are in charge of the prosecution.
Leader of Miami Crew Sentenced to 63 Months in Prison for Defrauding Banks and Cryptocurrency Exchange of More Than $4 MillionRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that ESTEBAN CABRERA DA CORTE, a/k/a “Esteban Cabrera,” a/k/a “Esteban Da Corte,” a/k/a “Steban,” was sentenced to 63 months in prison by U.S. District Judge Katherine Polk Failla for organizing a scheme to steal millions of dollars’ worth of cryptocurrency and trick U.S. banks into refunding the millions used to purchase that cryptocurrency by using, in part, personal identifying information stolen from other people.
U.S. Attorney Damian Williams said: “Esteban Cabrera Da Corte orchestrated a scheme to steal millions of dollars by buying cryptocurrency using false and stolen identities, then deceiving U.S. banks regarding those transactions. Cabrera Da Corte now faces years in prison for this crime. This sentencing should send a clear message that we, together with our law enforcement partners, will continue to zealously prosecute cryptocurrency scammers and money launderers.”
According to the Indictment, public filings, and statements made in court:
From at least in or about 2020 through at least in or about March 2020, CABRERA DA CORTE and his co-conspirators engaged in a scheme to deceive U.S. banks and a leading cryptocurrency exchange platform (the “Cryptocurrency Exchange”) by purchasing more than $4 million in cryptocurrency and then falsely claiming that the cryptocurrency purchase transactions were unauthorized, deceiving the U.S. banks and the Cryptocurrency Exchange into reversing those transactions and redepositing the money into the bank accounts that the defendants controlled. The defendants then withdrew the money from the bank accounts while also keeping the cryptocurrency for themselves.
To effect this scheme, CABRERA DA CORTE and his co-conspirators opened accounts with the Cryptocurrency Exchange, frequently using photos of fake U.S. passports, fake drivers’ licenses, and stolen personal identifying information. The Cryptocurrency Exchange accounts were linked to bank accounts that the defendants controlled. The defendants used money that had been deposited into the linked bank accounts, frequently through a series of cash deposits made using ATMs, to purchase cryptocurrency. That cryptocurrency was then quickly transferred to other cryptocurrency wallets outside of the Cryptocurrency Exchange that were controlled by the defendants and their co-conspirators. After the cryptocurrency was transferred, the defendants made telephone calls to the U.S. banks during which they falsely represented that the cryptocurrency purchases were unauthorized, leading the banks to reverse the transactions.
The operation of this scheme by the defendants resulted in U.S. banks processing more than $4 million in fraudulent reversals and the Cryptocurrency Exchange losing more than $3.5 million worth of cryptocurrency.
* * *
In addition to his prison term, CABRERA DA CORTE, 27, of Miami, Florida, was ordered to pay restitution of $3,578,786.69 and forfeiture of $1,200,000.
Mr. Williams praised the outstanding work of Homeland Security Investigation’s El Dorado Task Force.
This case is being handled by the Office’s Money Laundering and Transnational Criminal Enterprises Unit. Assistant U. S. Attorneys Emily Deininger and Josiah Pertz are in charge of the prosecution.
Justice Department Announces Charges in Connection with Foiled Plot to Assassinate U.S. Citizen in New York CityRead the Press Release
Today in the Southern District of New York, a superseding indictment was unsealed alleging murder-for-hire charges against Indian national Nikhil Gupta, aka Nick, 52, in connection with his participation in a foiled plot to assassinate a U.S. citizen in New York City. Czech authorities arrested and detained Gupta on June 30, 2023 pursuant to the bilateral extradition treaty between the United States and the Czech Republic.
According to court documents, earlier this year, an Indian government employee (CC-1), 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).
Gupta is an Indian national who resides in India, is an associate of CC-1 and has described his involvement in international narcotics and weapons trafficking in his communications with CC-1 and others. CC-1 is an Indian government agency employee who has variously described himself as a “Senior Field Officer” with responsibilities in “Security Management” and “Intelligence,” and who also has referenced previously serving in India’s Central Reserve Police Force and receiving “officer[] training” in “battle craft” and “weapons.” CC-1 directed the assassination plot from India.
In or about May 2023, CC-1 recruited Gupta to orchestrate the assassination of the Victim in the United States. 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.
At CC-1’s direction, Gupta contacted an individual whom Gupta believed to be a criminal associate, but who was in fact a confidential source working with U.S. Drug Enforcement Administration (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). CC-1 subsequently agreed in dealings brokered by Gupta to pay the UC $100,000 to murder the Victim. On or about June 9, CC-1 and Gupta arranged for an associate to deliver $15,000 in cash to the UC as an advance payment for the murder. CC-1’s associate then delivered the $15,000 to the UC in Manhattan.
In or about June 2023, in furtherance of the assassination plot, CC-1 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. CC-1 directed Gupta to provide regular updates on the progress of the assassination plot, which Gupta accomplished by forwarding to CC-1, 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 anticipated engagements scheduled to occur in the ensuing weeks between high-level U.S. and Indian government officials.
On or about June 18, 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, 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, CC-1 sent Gupta a news article about the Victim and messaged Gupta, “[i]t’s [a] priority now.”
Gupta is charged with murder-for-hire and conspiracy to commit murder-for-hire. Each count carries a maximum statutory penalty of 10 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’s New York Division and the Counterintelligence Division of the FBI’s New York Field Office are investigating the case, with valuable assistance provided by the DEA’s Special Operations Division, DEA’s Vienna Country Office, FBI’s 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 Attorneys Christopher Cook and Robert McCullers of the National Security Division’s Counterintelligence and Export Control Section, as well as 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.
Nikhil Gupta Superseding IndictmentFormer Principals of Private “Pre-IPO” Funds Charged in Connection with $386 Million 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 unsealing of an Indictment charging MICHAEL CASTILLERO, a/k/a Michael Alejandro, FRANCINE LANAIA, and BRIAN MARTINSEN with conspiracy, securities fraud, wire fraud, and investment adviser fraud in connection with their management of StraightPath Venture Partners LLC (“SPVP”), StraightPath Management LLC, and nine related StraightPath Funds. CASTILLERO and MARTINSEN are also charged with conspiracy to obstruct justice and obstruction of justice in connection with their deletion of records that had been subpoenaed by the Securities and Exchange Commission (“SEC”).
The defendants’ fraudulent misrepresentations about the operation of the StraightPath Funds allowed them to raise approximately $386 million from hundreds of investors. Based in large part on the excessive and undisclosed share price markups they charged to investors and their practice of commingling funds in violation of representations made to investors, the defendants were able to divert nearly $75 million in investor funds to themselves over an approximately three-and-a-half-year period.
LANAIA and MARTINSEN were taken into custody earlier today and presented this afternoon before U.S. Magistrate Judge Sarah L. Cave. CASTILLERO is expected to be presented tomorrow. The case has been assigned to U.S. District Judge Jesse M. Furman.
U.S. Attorney Damian Williams said: “As alleged, Michael Castillero, Francine Lanaia, and Brian Martinsen, the founders and former owners of the StraightPath Funds, took advantage of the relative lack of information and lower trading volumes for non-public companies by offering retail investors interests in shares of pre-IPO companies at inflated prices, allowing the defendants to skim off the top without investors realizing they’d been duped. To conceal their fraud, Castillero and Martinsen allegedly then took steps to destroy records that had been subpoenaed as part of an ongoing federal investigation. These exploitative practices in the pre-IPO markets will not be tolerated.”
USPIS Inspector in Charge Daniel B. Brubaker said: “These individuals used the U.S. Mail to facilitate their criminal activities by allegedly devising a fraud scheme designed to swindle innocent investors of their hard-earned money. The U.S. Postal Inspection Service is committed to uncovering investment scams and protecting the public from becoming a victim to these schemes that claim millions of dollars each year. We will be relentless in our efforts to pursue these criminals until justice is served. Postal Inspectors remind investors it is key to educate themselves and ask questions regarding these investments, even more so when they notice undisclosed fees.”
According to the allegations in the Indictment unsealed today in Manhattan federal court:[1]
From at least in or about 2017 through at least in or about April 2022, CASTILLERO, LANAIA, and MARTINSEN engaged in a scheme to defraud investors in a group of nine related private funds known generally as the “StraightPath Funds.” In particular, the defendants, and others working at their direction, used “boiler room”-style call centers to market the StraightPath Funds, including to individual, non-professional investors, as presenting an opportunity to invest in privately held companies expected to go public in the near future (“pre-IPO companies”). The defendants purported to offer investors the chance to acquire shares in pre-IPO companies at favorable prices in advance of an anticipated public offering, at which time, they claimed, the shares would be worth significantly more.
Although the defendants and their agents represented to existing and prospective investors in the StraightPath Funds that the defendants would earn no upfront fees in connection with the StraightPath Funds’ acquisition of pre-IPO shares, in reality, and contrary to their fiduciary duties, the defendants acquired the shares and then sold them to investors at arbitrarily inflated and excessive prices without disclosing to investors the nature or extent of the markup. The defendants also misled investors regarding the nature of their investments and hid the involvement of CASTILLERO and LANAIA who had been previously barred from the securities industry by the Financial Industry Regulatory Authority (“FINRA”). Moreover, in order to evade detection of their scheme, CASTILLERO and BRIAN MARTINSEN destroyed records and otherwise obstructed the efforts of the SEC to uncover the defendants’ fraud on investors.
In order to generate interest in the StraightPath Funds among retail investors, CASTILLERO, LANAIA, and MARTINSEN used finders, or “referral agents,” to pitch prospective investors and thereafter to serve as the investors’ primary point of contact. In turn, these agents used “boiler room”-style call centers to cold-call potential investors, many of whom were not sophisticated, and give aggressive sales pitches using notes and pitch scripts approved by the defendants. Contrary to the defendants’ claim that they and their agents did not make money unless and until investors received a profit on their investments, SPVP paid referral agents a commission, typically a 10 to 15 percent front-end fee based on the amount of the investment, plus a portion of the carried interest on the back end.
In addition to misleading prospective investors about the compensation paid to referral agents, CASTILLERO, LANAIA, and MARTINSEN defrauded investors in the StraightPath Funds, for which they acted as fiduciaries, by (i) charging investors excessive and undisclosed markups on share prices of pre-IPO companies, which benefited the defendants and their associates at the expense of investors and the StraightPath Funds; (ii) routinely overstating to investors the number of pre-IPO shares that backed the interests in StraightPath Funds they sold; (iii) falsely representing that investors were investing in a specific “Series” within a specific StraightPath Fund and that their contributions correlated to specific shares of specific pre-IPO companies, when, in actuality, investor funds were commingled across Series and Funds and used for purposes not disclosed to investors, including to pay out other investors and to compensate the defendants and their associates; (iv) falsely representing that a particular individual (“Fund Manager-1”) acted as manager of each of the StraightPath Funds and the SP Adviser when, in actuality, CASTILLERO, LANAIA, and MARTINSEN performed the functions ascribed to Fund Manager-1 in StraightPath’s offering documents including, among other things, using an email address in the name of Fund Manager-1 to correspond with investors; and (v) otherwise actively taking steps to prevent investors from learning about LANAIA’s and CASTILLERO’s leadership roles in light of the fact that both had been suspended and later permanently barred from involvement in the securities industry by FINRA.
Throughout the StraightPath Funds’ operation, CASTILLERO, LANAIA, and MARTINSEN actively took steps to conceal the true nature of SPVP’s operations not only from investors but also from regulatory bodies, including FINRA and the SEC. For example, MARTINSEN, CASTILLERO, and LANAIA discussed making Fund Manager-1 the scapegoat with the SEC, in the event the SEC identified any problems with StraightPath’s operations. MARTINSEN then added, “Fran [LANAIA] is going to wamboosle the sec lady tomorrow. They will talk weather for 45 min and the lady will forget what she’s looking for.”
In early May 2021, MARTINSEN and CASTILLERO agreed to and did delete certain email records that had been called for by an SEC subpoena and then falsely represented to SEC staff that the emails had never existed.
The StraightPath entities and StraightPath Funds are no longer operational and are under the control of a court-appointed Receiver tasked with taking possession of StraightPath’s assets and recommending a plan to return value to investors.
* * *
A chart containing the names, ages, residences, charges, and maximum penalties for the defendants is attached. 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 work of the USPIS. Mr. Williams further thanked the SEC, which previously filed separate civil charges against CASTILLERO, LANAIA, MARTINSEN, and others in connection with the operation of the StraightPath Funds in SEC v. Straightpath Venture Partners LLC et al., 22 Civ. 3897 (LAK) and SEC v. Hollender et al., 23 Civ. 2456 (LAK).
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Allison Nichols, Adam Hobson, and Jason Richman 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
Residence
Charges
Maximum Potential Sentence(s)
CASTILLERO
46
Staten Island, New York
Conspiracy to commit securities fraud, wire fraud, and investment adviser fraud
(Count One)
Securities fraud
(Count Two)
Wire fraud
(Count Three)
Investment adviser fraud
(Count Four)
Conspiracy to obstruct justice
(Count Five)
Obstruction of justice
(Count Six)
5 years
20 years
20 years
5 years
5 years
20 years
LANAIA
59
Fort Salonga, New York
Conspiracy to commit securities fraud, wire fraud, and investment adviser fraud
(Count One)
Securities fraud
(Count Two)
Wire fraud
(Count Three)
Investment adviser fraud
(Count Four)
5 years
20 years
20 years
5 years
MARTINSEN
47
Saint James, New York
Conspiracy to commit securities fraud, wire fraud, and investment adviser fraud
(Count One)
Securities fraud
(Count Two)
Wire fraud
(Count Three)
Investment adviser fraud
(Count Four)
Conspiracy to obstruct justice
(Count Five)
Obstruction of justice
(Count Six)
5 years
20 years
20 years
5 years
5 years
20 years
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth in this release constitute only allegations, and every fact described should be treated as an allegation.
Five Queens Men Charged with Kidnapping and MurderRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, James Smith, the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), and Edward A. Caban, the Commissioner of the New York City Police Department (“NYPD”), announced the unsealing of an Indictment charging DONXING ZHENG, WANGCHAO HE, a/k/a “Ah Chao,” JIANGNAN LIN, a/k/a “Xiao Pang,” a/k/a “Little Fatty,” DONG LIU, a/k/a “Ah Dong,” and SUI ZHANG, a/k/a “60,” with kidnapping resulting in the death of Peng Cheng Li (the “Victim”), kidnapping conspiracy, and conspiring to distribute ketamine. HE, LIN, LIU, and ZHANG were arrested today and will be presented before U.S. Magistrate Judge Victoria Reznik. ZHENG was arrested on a complaint on July 31, 2023, and presented on August 1, 2023, before Judge Reznik. ZHENG will be arraigned on the Indictment at a later date.
U.S. Attorney Damian Williams said: “As alleged, these five defendants lured Peng Cheng Li to a location with the intent to hold him for ransom, assaulting him and transporting him to the resulting of his death. Today’s arrest is a testament to my Office’s dedication to protecting the safety and security of our citizens and pursuing those who dare violate that to justice.”
FBI Assistant Director in Charge James Smith said: “These five defendants deprived the victim Peng Cheng Li of his freedom and ultimately his life when they allegedly kidnapped, assaulted, and murdered him in a failed attempt to collect a payment. This type of barbaric behavior has no place in our society and will not be tolerated. The FBI will be sure that anyone attempting to use violence to make money will be brought to justice.”
NYPD Commissioner Edward A. Caban said: “As demonstrated by this case, the dangerous combination of illicit drugs and brutal violence will never be tolerated in New York City. Today’s charges are the next step in our journey toward justice for Mr. Li. The tireless work of NYPD investigators, FBI agents, and prosecutors from the office of the U.S. Attorney for the Southern District will ensure that all involved in these grievous crimes are held accountable for their despicable acts.”
As alleged in public court filings and the Indictment unsealed today in White Plains federal court:[1]
On or about July 19, 2023, ZHENG, HE, LIN, LIU, ZHANG, and others known and unknown used an Internet-based cellphone application to call a restaurant to lure the Victim, an employee of the restaurant, to a location in Flushing, Queens. When the Victim arrived at that location, ZHENG, HE, LIN, LIU, ZHANG, and others known and unknown abducted, assaulted, and held the Victim for the promise of payment. Thereafter, ZHENG and others known and unknown drove the Victim through, among other locations, Manhattan, the Bronx, and Westchester County, and eventually took the Victim to New Hampshire. At some point after he was abducted, the Victim died, and ZHENG and others known and unknown buried the Victim’s body in a forest in New Hampshire.
* * *
HE, 29, LIN, 22, LIU, 35, ZHANG, 22, and ZHENG, 28, all of Queens, New York, are each charged with kidnapping resulting in death, which carries a maximum potential sentence of death or life in prison; kidnapping conspiracy, which carries a maximum potential sentence of life in prison; and conspiracy to distribute ketamine, which carries a maximum potential sentence of 10 years in prison.
The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as the sentencing of the defendants will be determined by a judge.
Mr. Williams praised the work of the FBI and the NYPD.
This case is being handled by the Office’s White Plains Division. Assistant U. S. Attorneys Ryan W. Allison and Jared D. Hoffman 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 text of the Indictment and the description of the Indictment set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Recidivist Fraudster Sentenced to 212 Months in Prison in Connection with $40 Million Ponzi Scheme and Other FraudsRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that FRANKLIN RAY was sentenced today by U.S. District Judge Analisa Torres to 212 months in prison for engaging in multiple fraud schemes, including a $40 million Ponzi scheme and two COVID-19 loan fraud schemes, and committing aggravated identity theft in connection with one of those schemes. RAY previously pled guilty to four counts of wire fraud and one count of aggravated identity theft.
U.S. Attorney Damian Williams said: “In the span of less than two years, Franklin Ray engaged in four separate fraudulent schemes, including a $40 million Ponzi scheme that victimized hundreds of people and schemes that stole funds intended for those in need during the COVID-19 pandemic. Ray even had the audacity to continue his Ponzi scheme while on pretrial release after his arrest in March 2022, stealing approximately $2 million from unsuspecting victims after he was charged with federal crimes. Today’s sentence shows that engaging in fraudulent conduct will have severe consequences.”
As alleged in the previously filed Complaint and Indictment and other court documents:
Beginning in at least June 2021, FRANKLIN RAY began to offer investors an opportunity to invest in his trucking and logistics company, CSA Business Solutions LLC (the “Truck Investment Scheme”). Specifically, RAY and the investors entered into contracts pursuant to which CSA Business Solutions LLC would procure and operate a truck in its trucking business for each $20,000 contributed by the investor. RAY told investors that the trucks would perform delivery services for a multinational e-commerce company and/or a multinational shipping company and that the investors would be entitled to 77% of the net income of the trucks. In reality, CSA Business Solutions LLC operated few trucks and had minimal revenues from trucking activities. Instead, investors in the Truck Investment Scheme received payments from new investments into the scheme or from other sources. After the investors purchased the rights to trucks from CSA Business Solutions LLC, RAY sent them falsified spreadsheets at regular intervals, purporting to show the performance of their trucks during the relevant period. RAY ultimately persuaded approximately 275 investors to invest at least $40 million and fraudulently claimed to have purchased over 2,000 trucks with the investments.
RAY also carried out fraudulent schemes to obtain over $1.9 million in government-guaranteed loans designed to provide relief to small businesses during the COVID-19 pandemic on behalf of CSA Business Solutions LLC and another Michigan-based trucking company (the “SBA Loan Fraud Schemes”). In connection with the SBA Loan Fraud Schemes, RAY submitted false information and forged documents to the Small Business Administration and commercial lenders. RAY claimed that these businesses engaged in significant trucking business, but they had minimal revenues and trucking activity. RAY also committed aggravated identity theft with respect to one of the SBA Loan Fraud Schemes.
In addition, RAY fraudulently induced a New York City-based real estate company (the “Company”) to pay $175,000 in startup costs for a joint venture (the “Joint Venture”) between the Company and CSA Business Solutions LLC. In order to persuade the Company to enter into the Joint Venture and pay the $175,000, RAY lied about his personal business experience and the trucking business conducted by CSA Business Solutions LLC. Rather than pay for startup costs, RAY spent the funds on personal expenses, including private airplane trips. The Joint Venture was never formed.
RAY was arrested in early March 2022, and a CSA Business Solutions LLC bank account was seized at that time. After his arrest, up until his Indictment in April 2022, RAY continued to operate the Truck Investment Scheme. RAY hid the fact of his arrest and the seizure of the bank account and lied to investors about why he did not make expected payments after his arrest. During the period after his arrest, RAY opened new bank accounts on behalf of CSA Business Solutions LLC and continued to solicit and accept investor funds for trucks that did not exist. In the post-arrest period alone, RAY defrauded investors into paying at least $1.9 million into his scheme.
RAY previously pled guilty to bank fraud and wire fraud in the Eastern District of Michigan. He received a two-year sentence in connection with those crimes and was released from federal custody in 2010.
* * *
In addition to the prison term, RAY, 52, of Canton, Michigan, was sentenced to five years of supervised release and ordered to forfeit $42,128,912.00 and several assets, including a 1968 Chevy Camaro. The defendant was also ordered to pay 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 Matthew Weinberg is in charge of the prosecution.
Former Insider at Major Financial Services Organization Admits Involvement in Multimillion-Dollar Insider Trading RingRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced today the guilty plea of LAWRENCE BILLIMEK in connection with his participation in a multimillion-dollar insider trading scheme. BILLIMEK was arrested in December 2022 and pled guilty to securities fraud based on insider trading before U.S. District Judge Paul G. Gardephe.
U.S. Attorney Damian Williams said: “For more than five years, Lawrence Billimek abused his trusted position in a major financial services organization to illicitly generate tens of millions of dollars in profits through insider trading. Billimek knew his actions were wrong, using burner phones and lies to try to cover his scheme, but he continued to undermine the integrity of the market anyway. Insider trading is a serious crime, and Billimek now faces substantial prison time.”
As alleged in the Indictment and statements made during court proceedings:
Through his employment at TIAA-CREF, BILLIMEK had advance access to certain of TIAA-CREF’s anticipated trades. Due to the size of certain of these TIAA-CREF trade orders, they often caused market movement in the securities they traded. From at least 2016 through his arrest in December 2022, BILLIMEK misused his insider access and provided inside information about these trades to his co-conspirator (“CC-1”) who then bought or sold the same securities in advance of the TIAA-CREF trading. CC-1 then provided BILLIMEK with a portion of the profits on these trades.
BILLIMEK and CC-1 engaged in these front-running trades on over a thousand occasions between in or about 2016 and December 2022. In an effort to hide their scheme, BILLIMEK used prepaid, unregistered “burner” phones to communicate with CC-1 throughout the trading day. BILLIMEK and CC-1 also lied to various financial institutions about the source of funds they received during the scheme, claiming that they were, among other things, gifts. In total, BILLIMEK and CC-1 generated tens of millions of dollars in profits.
* * *
BILLIMEK, 52, of Hailey, Idaho, pled guilty to 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 the judge. BILLIMEK will be sentenced by U.S. District Judge Paul G. Gardephe.
Mr. Williams praised the outstanding investigative work of the Federal Bureau of Investigation. Mr. Williams also thanked the U.S. Securities and Exchange Commission, which has filed a parallel civil action.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorney Jason A. Richman is in charge of the prosecution.
U.S. Attorney Charges Head of Hair Testing Company in $5.9 Million 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 Office of the U.S. Postal Inspection Service (“USPIS”), announced today the unsealing of an Indictment charging KYLE TSUI with wire fraud and mail fraud in connection with a scheme that resulted in sales of approximately $5.9 million worth of fabricated allergy and sensitivity tests to customers. TSUI was extradited from Spain to the U. S. based on the Indictment and will be presented today before U. S. Magistrate Judge Judith C. McCarthy.
U.S. Attorney Damian Williams said: “As alleged, Kyle Tsui defrauded customers of millions of dollars by claiming he would perform allergy and sensitivity testing on customers’ hair samples. However, Tsui performed no such testing and provided fabricated test results. Tsui now stands charged with defrauding thousands of innocent victims whose health was put at risk with false results.”
USPIS Inspector in Charge Daniel B. Brubaker said: “It’s unconscionable to think anyone would put the health of their clients at risk for money, but allegedly in this case, greed won out over the lives of innocent, trusting victims. Mr. Tsui’s alleged fabricated test results and lies were relied upon by many to make health-altering decisions, which we now know were worthless. Postal Inspectors remind consumers to thoroughly read the fine print of any offer providing medical breakthroughs to avoid falling victim to a scam, especially one that could cause physical harm.”
According to the allegations contained in the Indictment:[1]
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, customers paid approximately $5.9 million through an online marketplace for tests that TSUI claimed would be done on their hair samples.
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 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.
* * *
KYLE TSUI, 41, of Ontario, Canada is charged with wire fraud, which carries a maximum sentence of 20 years in prison, and mail fraud, which carries a maximum sentence of 20 years in prison.
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.
Mr. Williams praised the outstanding investigative work of the USPIS. Mr. Williams also thanked the Hyde Park Police Department, the New York State Troopers, the Toronto Police Service, the Department of Justice Criminal Division’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.
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, constitutes only allegations, and every fact described therein should be treated as an allegation.
School Occupational Therapist Charged with Sexual Exploitation of A Child and Receipt and Distribution of Child PornographyRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, and James Smith, the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today the arrest of MICHAEL MEYERS. MEYERS is charged with sexual exploitation of a child and receipt and distribution of child pornography. MEYERS was presented today before U.S. Magistrate Judge Judith C. McCarthy in White Plains federal court.
U.S. Attorney Damian Williams said: “Michael Meyers’s alleged conduct is disturbing, especially given that Meyers was entrusted with the care of children for many years as an occupational therapist at a school. This Office will do everything in our power to protect the children of our community, and we will use every tool available to law enforcement to investigate and prosecute those who sexually exploit children.”
FBI Assistant Director in Charge James Smith said: “Meyers allegedly used an online communication app to receive sexually explicit pictures from a minor child. The fact Meyers was employed in a school makes this alleged crime even more horrific. Both the bad guys and the American public need to know the FBI is committed to protecting the most vulnerable members of our society, and anyone attempting to sexually exploit a child can expect to end up in handcuffs and face serious punishment in the criminal justice system.”
According to the allegations in the Complaint filed in White Plains federal court and unsealed today:[1]
A review of MEYERS’s phone revealed the existence of communications between MEYERS and a 16-year-old minor (“Victim-1”) on the online application Discord. In connection with these communications, Victim-1 sent MEYERS several sexually explicit photos of Victim-1 at MEYERS’s request.
Records received by law enforcement indicate that MEYERS was employed as an occupational therapist at a school in Oceanside, New York, from on or about September 1, 1998.
* * *
MEYERS, 62, of Port Jervis, New York, is charged with one count of sexual exploitation of a child, which carries a mandatory minimum sentence of 15 years in prison and a maximum sentence of 30 years in prison, and one count of receipt and distribution of child pornography, which carries a mandatory minimum sentence of five years in prison and a maximum sentence of 20 years in prison.
The minimum and maximum potential 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 efforts of the FBI’s Hudson Valley Resident Agency’s Safe Streets Task Force, the El Dorado Police Department, the Port Jervis Police Department, the St. John’s County Sheriff’s Office, the U.S. Postal Inspection Service, the New York State Police, and the Putnam County Sheriff’s Office. He added that the investigation is ongoing.
Any individuals who believe they have information that may be relevant to this investigation should contact the FBI at 1-800-CALL-FBI or https://tips.fbi.gov.
The prosecution is being handled by the Office’s White Plains Division. Assistant U.S. Attorney Shaun E. Werbelow is in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Two Highest-Ranking Leaders of Gorilla Stone Bloods Gang Convicted at Trial of Racketeering and Narcotics OffensesRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that DWIGHT REID, a/k/a “Dick Wolf,” and CHRISTOPHER ERSKINE, a/k/a “Beagle,” were found guilty yesterday of racketeering and narcotics conspiracy in connection with their leadership of the Untouchable Gorilla Stone Nation Bloods Gang (“Gorilla Stone”), a brutally violent street and prison gang that operates across the country. REID, the gang’s highest-ranking member, is the gang’s founder and prison leader. ERSKINE, the gang’s street leader, also known as the “Sun,” is the gang’s second highest-ranking member. The convictions followed a nearly three-week trial before U.S. District Judge Philip M. Halpern. REID will be sentenced on May 21, 2024, and ERSKINE will be sentenced on May 23, 2024.
U.S. Attorney Damian Williams said: “Dwight Reid and Christopher Erskine are the two highest-ranking members of Gorilla Stone, a ruthless gang, and are responsible for terrible violent acts and trafficking dangerous narcotics across the country and state, including throughout the New York State prison system. They now stand convicted of their crimes and will no longer be able to inflict harm on the people of our District.”
According to the Indictment, public court filings, and statements made in court:
REID founded Gorilla Stone over 20 years ago. Gorilla Stone has many members across New York State, including throughout New York City, Westchester, Upstate New York, and the New York State Prison System, and all over the country, such as in Florida. Gorilla Stone is comprised of various sets (or “Caves,” as they are called by gang members). Gorilla Stone is a highly organized and efficient street gang with an organizational commitment to violence that strictly enforces its internal laws.
Among Gorilla Stone’s acts of violence are:
- A September 2020 broad daylight murder of a minor on a busy Poughkeepsie street;
- An October 24, 2020, gang-related shooting outside of a Miami, Florida, strip club, in which two rival gang members were shot and seriously wounded, requiring one to be airlifted from the scene;
- Multiple shootings and attempted murders, including an August 8, 2018, shooting in Brooklyn, New York; July 5, 2020, gang shootings at a house party in Miami, Florida; and a July 20, 2020, drive-by shooting in New Rochelle, New York;
- A June 12, 2020, gunpoint drug-related robbery in Peekskill, New York; and
- A vicious January 12, 2018, face slashing of a rival gang member on 125th Street in Manhattan.
As for the gang’s sources of revenue, in addition to some more traditional sources such as the proceeds of nationwide narcotics trafficking both inside and outside of prisons, Gorilla Stone is deeply involved in several fraud schemes that are well organized and sophisticated and net a significant amount of money for the gang, including a fraudulent unemployment benefits scheme during the COVID-19 pandemic.
* * *
REID, 51, of New York, New York, and ERSKINE, 40, of Brooklyn, New York, were convicted of one count of racketeering conspiracy, which carries a maximum sentence of life in prison, and one count of narcotics conspiracy, which also carries a maximum sentence of life in prison with a mandatory minimum of 25 years in prison for REID and 10 years in prison for ERSKINE. ERSKINE was also convicted of one count of narcotics distribution, which carries a maximum sentence of 20 years in prison. The defendants were acquitted of a gun possession offense.
The minimum and 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 the judge.
With REID and ERSKINE’s trial convictions, all 21 defendants in the Gorilla Stone case before Judge Halpern have been convicted. 13 defendants have been sentenced and eight defendants, including REID and ERSKINE, have been convicted and are awaiting sentencing. The 13 defendants who have been sentenced by Judge Halpern to date are:
- Godfather DONAVAN GILLARD, a/k/a “Donnie Love,” who was sentenced to 248 months in prison;
- Godmother NAYA AUSTIN, a/k/a “Baby,” who was sentenced to 234 months in prison;
- Godmother BRINAE THORNTON, a/k/a “Luxury,” who was sentenced to 210 months in prison;
- JARRETT CRISLER, Jr., a/k/a “Jayecee,” who was sentenced to 207 months in prison;
- CASWELL SENIOR, a/k/a “Casanova,” who was sentenced to 188 months in prison;
- Godfather BRANDON NIEVES, a/k/a “Untouchable Dot,” who was sentenced to 110 months in prison;
- JAMAL TRENT, a/k/a “Trap Smoke,” who was sentenced to nine years in prison;
- DEZON WASHINGTON, a/k/a “Blakk,” who was sentenced to 97 months in prison;
- ROBERTA SLIGH, a/k/a “Trouble,” who was sentenced to eight years in prison;
- JORDAN INGRAM, a/k/a “Flow,” who was sentenced to eight years in prison;
- STEPHEN HUGH, a/k/a “Chino,” who was sentenced to seven years in prison;
- ISAIAH SANTOS, a/k/a “Zay,” who was sentenced to seven years in prison; and
- SHANAY OUTLAW, a/k/a “Easy,” who was sentenced to three years in prison.
In addition to REID and ERSKINE, who are awaiting sentencing, six additional defendants have pled guilty and are awaiting sentencing: Godfather DESHAWN THOMAS, a/k/a “Don,” Godfather WALTER LUSTER, a/k/a “Shells,” AHMED WALKER, a/k/a “Ammo,” BRANDON SOTO, a/k/a “Stacks,” NEIKO CRUDUP, a/k/a “JhitRilla,” and ROBERT WOODS, a/k/a “Blakk Rob.”
Mr. Williams praised the outstanding investigative work of the Federal Bureau of Investigation (“FBI”) Westchester County Safe Streets Task Force, which is comprised of special agents and task force officers from the FBI, U.S. Probation, New York State Police, New York State Department of Corrections and Community Supervision, Westchester County District Attorney’s Office, Putnam County Sheriff’s Office, Rockland District Attorney’s Office, and the New York City, Westchester County, Yonkers, New Rochelle, Mount Vernon, Greenburgh, White Plains, Peekskill, Ramapo, and Clarkstown Police Departments.
This case is being prosecuted by the Office’s White Plains Division. Assistant U.S. Attorneys Shiva H. Logarajah, David R. Felton, Kathryn P. Wheelock, and Courtney L. Heavey, with the assistance of Paralegal Specialists Shannon Becker and Liam Ronan, are in charge of the prosecution.
Three Men Arrested for Complex Bank Fraud and Cryptocurrency Laundering SchemeRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, and James Smith, the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today the arrests of ZHONG SHI GAO, a/k/a “George,” NAIFENG XU, a/k/a “Andy,” and FEI JIANG, a/k/a “Jeffrey,” a/k/a “Brother Fei,” for charges in connection with a scheme to steal and launder millions of dollars from financial institutions, which resulted in the theft of over $10 million. GAO and JIANG were arrested this morning and will be presented today before U.S. Magistrate Judge Robert W. Lehrburger. XU was arrested in Oklahoma and will be presented in the U.S. District Court for the Eastern District of Oklahoma. The case is assigned to U.S. District Judge Colleen McMahon.
U.S. Attorney Damian Williams said: “For years, Zhong Shi Gao, Naifeng Xu, and Fei Jiang allegedly participated in a complex scheme to steal over $10 million from nearly a dozen U.S. banks and financial institutions, which they converted into cryptocurrency and moved to foreign cryptocurrency exchanges. These charges should serve as a warning to fraudsters and cybercriminals who think they can turn to cryptocurrency to hide their identities – together with our partner agencies, we will find you and hold you accountable for your crimes.”
FBI Assistant Director in Charge James Smith said: “Gao, Jiang, and Xu were arrested for allegedly stealing and laundering more than $10 million dollars by scamming multiple financial institutions and using foreign cryptocurrency exchanges. Schemes like this harm institutions and make it tougher to report suspicious transfers. The arrests today serve as a warning to anyone thinking of attempting to engage in bank fraud. The FBI will hold you accountable in the criminal justice system.”
According to the allegations in the Indictment unsealed today in Manhattan federal court:[1]
Between at least in or about 2018 and in or about 2022, ZHONG SHI GAO, a/k/a “George,” NAIFENG XU, a/k/a “Andy,” and FEI JIANG, a/k/a “Jeffrey,” a/k/a “Brother Fei,” participated in a scheme with others to steal millions of dollars from financial institutions by causing transfers of funds between accounts they controlled, then falsely and fraudulently reporting that the transfers were unauthorized, which induced the financial institutions to credit them the amount of the transfers. The scheme proceeded in the following manner:
First, GAO, XU, JIANG, and other members of the scheme would recruit other people — frequently foreign nationals from China and Taiwan temporarily residing in the United States — to open bank accounts at various bank branches in the New York City metropolitan area and elsewhere. Control over these bank accounts would then be given to GAO, XU, JIANG, and other members of the scheme.
Second, GAO, XU, JIANG, and other members of the scheme would arrange for funds to be deposited and transferred between bank accounts controlled by members of the scheme. Next, GAO, XU, JIANG, and other members of the scheme would cause fraudulent reports to be filed with the banks claiming that these wire transfers were unauthorized. This prompted the banks — both the bank issuing the wire transfer and the bank receiving the wire transfer — to temporarily credit the accounts in the amount of the transferred funds, effectively doubling the amount of money initially deposited into these accounts, even though GAO, XU, JIANG, and other members of the scheme had in fact authorized the transfers and maintained control over the transferred funds all along.
Finally, GAO, XU, JIANG, and other members of the scheme would arrange for the credited funds to be quickly withdrawn as cash or converted into cryptocurrency and moved to foreign cryptocurrency exchanges before the banks realized that the unauthorized-transfer reports were fraudulent. This resulted in GAO, XU, JIANG, and other members of the scheme withdrawing nearly double the money initially deposited while leaving the bank accounts with negative balances.
In total, GAO, XU, JIANG, and other members of the scheme are responsible for over $10 million in actual losses to nearly a dozen banks and financial institutions.
* * *
ZHONG SHI GAO, 31, of Flushing, New York; NAIFENG XU, 37, of Guthrie, Oklahoma; and FEI JIANG, 41, of Brooklyn, New York, are each charged with one count of bank fraud conspiracy, which carries a maximum sentence of 30 years in prison; one count of conspiracy to commit wire fraud affecting a financial institution, which carries a maximum sentence of 30 years in prison; one count of money laundering conspiracy, which carries a maximum sentence of 20 years in prison; and one count of aggravated identity theft, which carries a mandatory sentence of two years in prison to be served consecutively to any other sentence imposed.
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 the judge.
Mr. Williams praised the investigative work of the FBI’s Asian and African Organized Crime Squad. Mr. Williams also thanked the FBI Field Office in Oklahoma City for their assistance in the investigation of this case.
This case is being handled by the Office’s Violent & Organized Crime Unit. Assistant U.S. Attorneys Andrew K. Chan, James Ligtenberg, and Ni Qian are in charge of the prosecution.
The charges contained in the 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 herein should be treated as an allegation.
Pine Bush Man Sentenced to 10 Years in Prison for Distribution and Receipt of Child PornographyRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced today that ZACHARY HUEBSCH was sentenced to 10 years in prison by U.S. District Judge Kenneth M. Karas for distribution and receipt of child pornography. The sentencing today followed HUEBSCH’s guilty plea on May 24, 2023.
U.S. Attorney Damian Williams said: “The defendant’s conduct was abhorrent and illustrates the danger that online predators pose to vulnerable members of our community, our children. As today’s sentencing demonstrates, we will use all of the law enforcement tools available to us to prosecute and punish those who exploit children.”
According to documents filed in this case and statements made in related court proceedings:
HUEBSCH communicated on Discord, a social media application, with a 12-year-old minor (“Victim-1”) in July and August of 2021. Using the Discord username “yourdarkmaster2,” HUEBSCH instructed Victim-1 to engage in various sexual acts and to perform those acts on live-streaming video. HUEBSCH preserved sexually explicit images of Victim-1 from those live-streaming sessions. HUEBSCH also discussed meeting with Victim-1 in person to engage in sexual activity, and he sent her a screenshot of a map of a park near Victim-1’s house with a suggested location at which to meet.
The investigation concerning HUEBSCH began following a report from Victim-1’s mother concerning the mother’s discovery of communications on Victim-1’s phone that concerned her.
* * *
In addition to the prison term, HEUBSCH, 25, of Pine Bush, New York, was sentenced to 10 years of supervised release.
Mr. Williams praised the efforts of the Federal Bureau of Investigation, the Hudson Valley Safe Streets Task Force, the Town of Crawford Police Department, and the Morris County Prosecutor’s Office in connection with this investigation.
The prosecution is being handled by the Office’s White Plains Division. Assistant U.S. Attorney Marcia S. Cohen is in charge of the prosecution.
Israeli Hacker-For-Hire Sentenced to 80 Months in Prison for Involvement in Massive Spearphishing CampaignRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that AVIRAM AZARI was sentenced today to 80 months in prison for computer intrusion, wire fraud, and aggravated identity theft in connection with his involvement in a massive computer-hacking campaign targeting companies and individuals in the U.S. and around the world. AZARI was arrested on these charges in September 2019 while traveling to the U. S. from abroad and has been detained since his arrest. U.S. District Judge John G. Koeltl imposed today’s sentence.
U.S. Attorney Damian Williams said: “From his home in Israel, Aviram Azari played a major role in orchestrating and facilitating an international hacking-for-hire spearphishing campaign. The conspiracy targeted individuals and companies in the U.S. and abroad, resulting in the theft of data and netting Azari over $4.8 million in criminal proceeds. Today’s sentencing sends an unmistakable message about my Office’s firm commitment to prosecuting hackers, domestic and foreign alike.”
According to the allegations contained in the Indictment to which AZARI pled guilty, public court filings, and statements made during court proceedings:
From approximately November 2014 to September 2019, AZARI engaged in an extensive spearphishing campaign that targeted individuals and companies in the U. S. and around the globe. AZARI owned and operated an Israeli intelligence firm. Clients hired AZARI to manage “Projects” that were described as intelligence gathering efforts but were, in fact, hacking campaigns specifically targeting certain groups of victims, including climate change activists and individuals and financial firms that had been a critical part of the German payment processing company Wirecard A.G. AZARI paid different hacking groups, including a particular group located in India, to send spearphishing emails to victims of the various Projects. The hacking groups updated AZARI on their progress, including sending him lists that tracked their hacking efforts against specific victims. The hackers also sent AZARI reports, advising when they were successful in accessing victims’ accounts and stealing information.
One of AZARI’s hacking Projects was focused on targeting individuals and organizations involved with climate change advocacy. Some of the hacked documents that were stolen from various of the victims’ online accounts were leaked to the press, resulting in articles relating to the New York and Massachusetts Attorneys Generals’ investigations into Exxon Mobil Corporation’s knowledge about climate change and potential misstatements made by Exxon regarding what it knew about the risks of climate change.
Clients of AZARI’s Israeli private intelligence company paid AZARI more than approximately $4.8 million over a nearly five-year period for managing the intelligence gathering and spearphishing campaign. AZARI executed his crimes deliberately and over an extended period primarily for his own self-enrichment. Some of AZARI’s thousands of victims have described the devastating personal, financial, and reputational impact AZARI’s crimes had on them. Victims have described the persistent and relentless targeting of them and their associates, as well as the theft of their identities and personal data, as “psychological assault” that has caused them “anxiety, paranoia, depression, sleeplessness, and fear,” and the victims have expressed continued concerns for their personal safety.
* * *
AZARI, 52, of Kiryat Yam, Israel, pled guilty to one count of conspiracy to commit computer hacking, one count of wire fraud, and one count of aggravated identity theft. In addition to his prison term, AZARI was sentenced to three years of supervised release and was ordered to pay forfeiture of $4,844,968.
Mr. Williams praised the outstanding investigative efforts of the Federal Bureau of Investigation.
This case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Juliana N. Murray and Olga Zverovich are in charge of the prosecution.
Criminal Defense Attorney Pleads Guilty to Decade-Long Federal Court Bribery SchemeRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced today that TELESFORO DEL VALLE, JR., a/k/a “Ted,” a criminal defense attorney who has appeared in cases in the U.S. District Court for the Southern District of New York (“SDNY District Court”) and elsewhere for more than 20 years, pled guilty to charges of conspiracy, bribery, paying illegal compensation to a court employee, and making material false statements to law enforcement to conceal his crimes.
U.S. Attorney Damian Williams said: “Practicing law, particularly criminal law, demands integrity and honesty. The public relies on attorneys and court employees to maintain and validate its faith in our criminal justice system. As he admitted today, Del Valle Jr. betrayed that trust by engaging in a scheme that spanned more than a decade and corrupted the fair administration of justice for personal gain. My Office will always pursue corrupt actors without fear or favor. The people in our District and this country deserve nothing less.”
According to the allegations in the Indictment:[1]
DEL VALLE is a private attorney who has appeared in numerous federal criminal cases pending before the SDNY District Court. DIONISIO FIGUEROA, a/k/a “Dionicio,” a clerk in the SDNY Magistrate Clerk’s Office since in or about 2002, was responsible for performing duties that included, among other things, making data entries regarding official case events in criminal cases, making summary entries of documents and proceedings on case dockets, and performing inquiries and furnishing information, either in person or by correspondence, regarding the status of cases. FIGUEROA also played a role with respect to the intake of criminal cases, including by preparing appearance bonds, advising defendants and their family members about the conditions of the bonds, and ensuring that appearance bonds were signed by all parties prior to a defendant’s release.
SDNY District Court personnel policies prohibited FIGUEROA from, among other things, having outside employment that would pose a conflict of interest; receiving payments, gifts, or other benefits from persons having business before the District Court; and recommending particular attorneys to members of the public. FIGUEROA was also subject to the U. S. Courts’ Code of Conduct for Judicial Employees (the “Code of Conduct”), which cautioned judicial employees that “[a] number of criminal statutes of general applicability govern federal employees’ performance of official duties. These include: 18 U.S.C. § 201 (bribery of public officials and witnesses) . . .” The Code of Conduct likewise admonished, among other things, that “[a] judicial employee should never influence or attempt to influence the assignment of cases, or perform any discretionary or ministerial function of the court in a manner that improperly favors any litigant or attorney, nor should a judicial employee imply that he or she is in a position to do so.”
Between at least 2011 and 2022, DEL VALLE and FIGUEROA engaged in a scheme whereby FIGUEROA used his position as an employee of the SDNY District Court to encourage criminal defendants to retain DEL VALLE to represent them in pending criminal cases. In return, DEL VALLE paid FIGUEROA a portion of the fees referred clients paid to DEL VALLE. Over the course of more than a decade, FIGUEROA referred at least 45 SDNY criminal defendants to DEL VALLE, and DEL VALLE paid FIGUEROA tens of thousands of dollars in referral fees. DEL VALLE paid FIGUEROA directly and through an intermediary who would pick up envelopes of cash for FIGUEROA from DEL VALLE’s law office. Many of the clients who ended up retaining and paying DEL VALLE previously had been assigned court-appointed counsel at no cost to them.
In November 2022, federal law enforcement agents separately interviewed both DEL VALLE and FIGUEROA after advising each that lying to federal law enforcement agents is a federal crime. DEL VALLE and FIGUEROA each made materially false, fictitious, and fraudulent statements and representations in response to the agents’ questions. In particular, DEL VALLE, upon being served with a federal grand jury subpoena requiring the production of records from his law firm, falsely denied having any records reflecting client referrals from or payments to FIGUEROA or anyone else. FIGUEROA falsely denied making any referrals to DEL VALLE, except on a small number of occasions concerning close relations or friends, and further falsely denied ever having received payments from DEL VALLE for referrals.
* * *
DEL VALLE, 65, of Leonia, New Jersey, pled guilty to one count of conspiracy to bribe a federal employee and pay illegal compensation to a judicial employee, which carries a maximum potential sentence of five years in prison; one count of bribery of a federal employee, which carries a maximum potential sentence of 15 years in prison; one count of paying illegal compensation to a judicial employee, which carries a maximum potential sentence of five years in prison; and one count of making material false statements, which carries a maximum potential sentence of five years in prison. Sentencing is scheduled for March 12, 2024, before the Hon. Mae A. D’Agostino, U. S. District Judge for the Northern District of New York, sitting by designation.
The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.
FIGUEROA has pled not guilty to the charges contained in the Indictment, which are merely accusations, and the trial in his case is scheduled to begin on December 4, 2023. FIGUEROA is presumed innocent unless and until proven guilty.
Mr. Williams praised the outstanding investigative work of the Special Agents from the U.S. Attorney’s Office for the Southern District of New York.
The case is being prosecuted by the Office’s Public Corruption Unit. Assistant U.S. Attorneys Frank Balsamello, Jarrod L. Schaeffer, and Stephanie Simon have charge of the prosecution.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the descriptions of the Indictment set forth below constitute only allegations, and every fact described should be treated as an allegation.
Wisconsin Man Pleads Guilty to Hacking Fantasy Sports and Betting WebsiteRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that JOSEPH GARRISON pled guilty today to conspiracy to commit computer intrusion in connection with a scheme to hack user accounts at a fantasy sports and betting website (the “Betting Website”) and sell access to those accounts in order to steal hundreds of thousands of dollars from them. GARRISON pled guilty before U.S. Magistrate Judge Robert W. Lehrburger and is scheduled to be sentenced by U.S. District Judge Lewis A. Kaplan on January 16, 2024.
U.S. Attorney Damian Williams said: “Joseph Garrison and his co-conspirators launched an online cyberattack, stealing approximately $600,000 from innocent victims’ accounts. Garrison now stands convicted of a federal crime for targeting the accounts of victims making legitimate online wagers.”
According to the charging documents and other filings and statements made in court:
On or about November 18, 2022, GARRISON launched a “credential stuffing attack” on the Betting Website. During a credential stuffing attack, a cyber threat actor collects stolen credentials or username and password pairs obtained from large-scale data breaches of companies that can be purchased on the dark web. The threat actor then systematically attempts to use those stolen credentials to obtain unauthorized access to accounts held by the same user with other companies and providers in order to compromise accounts where the user has maintained the same password. Here, in connection with the attack on the Betting Website, there was a series of attempts to log into the Betting Website accounts using a large list of stolen credentials.
GARRISON and others successfully accessed approximately 60,000 accounts at the Betting Website (the “Victim Accounts”) through the credential stuffing attack. In some instances, the individuals who unlawfully accessed the Victim Accounts were able to add a new payment method on the account, deposit $5 into that account through the new payment method to verify that method, and then withdraw all the existing funds in the Victim Account through the new payment method (i.e., to a newly added financial account belonging to the hacker), thus stealing the funds in the Victim Account. Using this method, GARRISON and others stole approximately $600,000 from approximately 1,600 Victim Accounts.
Law enforcement executed a search on GARRISON’s home in February 2023. In that search, they located programs typically used for credential stuffing attacks. Those programs require individualized “config” files for a target website to launch credential stuffing attacks, and law enforcement located approximately 700 such config files for dozens of different corporate websites on GARRISON’s computer. Law enforcement also located files containing nearly 40 million username and password pairs on GARRISON’s computer, which are also used in credential stuffing attacks.
On GARRISON’s cellphone, law enforcement also located conversations between GARRISON and his co-conspirators, which included discussions about how to hack the Betting Website and how to profit from the hack of the Betting Website by extracting funds from the Victim Accounts directly or by selling access to the Victim Accounts. In one particular conversation, GARRISON discussed, in substance and in part, how successful he was at credential stuffing attacks, how much he enjoyed credential stuffing attacks, and how GARRISON believed that law enforcement would not catch or prosecute him. Specifically, GARRISON messaged the following, in substance and in part: “fraud is fun . . . im addicted to see money in my account . . . im like obsessed with bypassing shit.”
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GARRISON, 19, of Madison, Wisconsin, pled guilty to one count of conspiring to commit computer intrusion, which carries a maximum sentence of five 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 the judge.
Mr. Williams praised the outstanding work of the Federal Bureau of Investigation.
The case is being prosecuted by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Kevin Mead and Micah Fergenson are in charge of the prosecution.
Twenty-Eight Gang Members and Associates from Newburgh and Poughkeepsie Charged with Racketeering, Narcotics, and Firearms OffensesRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, and James Smith, the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced the unsealing of a 34-Count Superseding Indictment charging 28 members and associates of the Young Gunnaz Gang (“YG”), including the gang’s high-ranking street leaders, with committing various racketeering, narcotics, and firearms offenses. The case is assigned to U.S. District Judge Kenneth M. Karas.
The Superseding Indictment adds 15 additional defendants and 26 new charges. The Superseding Indictment charges 23 YG members and associates with acts of violence. This includes KASHAD SAMPSON, a/k/a “Shoca,” a YG leader who is charged with participating in multiple assaults with a dangerous weapon in Poughkeepsie and Newburgh, New York. In addition to serious acts of violence, the gang was also responsible for trafficking large amounts of narcotics across the City of Newburgh and New York State and perpetrated fraud schemes to enrich members of the gang.
U.S. Attorney Damian Williams said: “As alleged, Kashad Sampson, along with 27 other members of the YG Gang, not only used dangerous weapons to assault members of rival gangs, drug dealers, and others for the purpose of maintaining their position in the gang, but also distributed narcotics and other drugs and conspired to commit fraud. My Office will work tirelessly to protect New Yorkers from assault, racketeering, and other dangerous crimes associated with gang activity.”
FBI Assistant Director in Charge James Smith said: "The 28 members and associates of the Young Gunnaz Gang are alleged to have engaged in a gang-related conspiracy, acting with a sense of impunity that resulted in numerous senseless acts of violence and significant narcotics distribution. The FBI will not tolerate rampant gang violence terrorizing our communities. FBI New York's Hudson Valley Safe Streets Task Force, along with our law enforcement partners, are committed to removing these violent criminals from the streets and bringing them to justice."
As alleged in public court filings and the Superseding Indictment unsealed today in White Plains federal court:[1]
KASHAD SAMPSON, a/k/a “Shoca,” GEORGE DELGADO, a/k/a “Groc,” GABRIEL ROMAN, a/k/a “Gabe,” DALLAS ARCHER, a/k/a “Muggas,” BRUCE ALLEN, a/k/a “Bam,” SYNCERE TATUM, a/k/a “Syn,” JOHN LALANNE, a/k/a “JJ,” RAEKWON JACKSON, a/k/a Tree,” BASHIR MALLORY, a/k/a “BG,” a/k/a “Bear,” MEKHI McDONALD, a/k/a “Khi,” CHRISTOPHER TATE, a/k/a “Bag,” KRISTOPHER BURGESS CUNNINGHAM, a/k/a “KG,” DEJON SCOTT, a/k/a “Red Dot,” DAVON WADDELL, a/k/a “Spotem,” a/k/a “Light Skin Day Day,” ZYRELL WILLIAMS, a/k/a “Zabb,” DEMETRIUS WARE, a/k/a “Doom Doom,” ANTONIO PITTMAN, a/k/a “Ant,” DAQUAN CUETO, CHRISTOPHER JOHNSON, a/k/a “Brisko,” HARRY PIMENTEL, ERIC STEADMAN, a/k/a “Little Man,” DONALD LEID, a/k/a “Big Lip Day Day,” TEVIN GEORGE, a/k/a “Tev Roc,” DEVIN WILLIAMS, a/k/a “Twin,” a/k/a “Dev,” DANTE JOHNSON, a/k/a “D Rose,” GEORGE TATUM, a/k/a “Buddy,” COLERIDGE LEWTER, a/k/a “Korrupt,” and RODNEY GEORGE, a/k/a “Taco,” are members and associates of a racketeering conspiracy known as YG.
On April 28, 2020, ANTONIO PITTMAN, for the purpose of maintaining and increasing his position in the YG enterprise, shot at rival gang members in Poughkeepsie, New York.
On May 16, 2020, ANTONIO PITTMAN, ERIC STEADMAN, and HENRY PIMENTEL, for the purpose of maintaining and increasing their positions in the YG enterprise, shot at individuals associated with and members of a rival gang in Yonkers, New York.
On September 9, 2020, ERIC STEADMAN and HENRY PIMENTEL, for the purpose of maintaining and increasing their positions in the YG enterprise, shot at rival gang members in Poughkeepsie, New York.
On August 15, 2020, KASHAD SAMPSON, DALLAS ARCHER, JOHN LALANNE, and RAEKWON JACKSON, for the purpose of maintaining and increasing their positions in the YG enterprise, participated in and facilitated the attempted murder of rival gang members in Poughkeepsie, New York.
On April 27, 2021, SYNCERE TATUM, GABRIEL ROMAN, and CHRISTOPHER TATE, for the purpose of maintaining and increasing their positions in the YG enterprise, attempted to rob and shot at a rival drug dealer in the City of Newburgh.
On November 17, 2021, KASHAD SAMPSON, GEORGE DELGADO, and BRUCE ALLEN, for the purpose of maintaining and increasing their positions in the YG enterprise, shot four rival gang members in the City of Newburgh.
On November 28, 2021, BASHIR MALLORY and GABRIEL ROMAN, for the purposes of maintaining and increasing their positions in the YG enterprise, shot at rival gang members in the City of Newburgh.
On January 7, 2022, BASHIR MALLORY and MEKHI McDONALD, for the purposes of maintaining and increasing their positions in the YG enterprise, shot at rival gang members and shot one rival gang member in the City of Newburgh.
On March 8, 2022, DAVON WADDELL and CHRISTOPHER TATE, for the purposes of maintaining and increasing their positions in the YG enterprise, shot a rival drug dealer in the City of Newburgh.
On June 11, 2022, DAQUAN CUETO, SYNCERE TATUM, RAEKWON JACKSON, and BASHIR MALLORY, for the purposes of maintaining and increasing their positions in the YG enterprise, assaulted and stabbed a rival gang member in the City of Newburgh.
On July 20, 2022, CHRISTOPHER JOHNSON and DONALD LEID, for the purposes of maintaining and increasing their positions in the YG enterprise, shot at rival gang members in the City of Newburgh.
On September 27, 2022, DAVON WADDELL and SYNCERE TATUM, for the purposes of maintaining and increasing their positions in the YG enterprise, shot at suspected rival gang members in the City of Newburgh.
On September 6, 2019, TEVIN GEORGE, for the purposes of maintaining and increasing his position in the YG enterprise, shot a rival gang member in the City of Newburgh.
On November 10, 2020, JOHN LALANNE robbed a narcotics dealer at gunpoint and discharged his firearm in the City of Newburgh.
On January 20, 2022, DAVON WADDELL and BRUCE ALLEN robbed a narcotics dealer at gunpoint and discharged a firearm in the City of Newburgh.
On July 20, 2022, DAVON WADDELL, CHRISTOPHER JOHNSON, RAEKWON JACKSON, DONALD LEID, and DANTE JOHNSON robbed a narcotics dealer at gunpoint in the City of Newburgh.
From at least 2019 to the present, KASHAD SAMPSON, GEORGE DELGADO, GABRIEL ROMAN, DALLAS ARCHER, BRUCE ALLEN, SYNCERE TATUM, JOHN LALANNE, RAEKWON JACKSON, BASHIR MALLORY, MEKHI McDONALD, CHRISTOPHER TATE, KRISTOPHER BURGESS CUNNINGHAM, DEJON SCOTT, DAVON WADDELL, ZYRELL WILLIAMS, DEMETRIUS WARE, ANTONIO PITTMAN, DAQUAN CUETO, CHRISTOPHER JOHNSON, ERIC STEADMAN, DONALD LEID, TEVIN GEORGE, DEVIN WILLIAMS, DANTE JOHNSON, GEORGE TATUM, COLERIDGE LEWTER, and RODNEY GEORGE participated in a conspiracy to distribute a substantial amount of narcotics, including fentanyl, crack cocaine, heroin, Oxycodone, marijuana, and Promethazine HCL mixed with Codeine, commonly known as “lean.” These individuals also possessed numerous firearms in connection with this narcotics conspiracy.
From at least March 2020 through at least December 2022, KASHAD SAMPSON, GEORGE DELGADO, GABRIEL ROMAN, BRUCE ALLEN, SYNCERE TATUM, JOHN LALANNE, BASHIR MALLORY, MEKHI McDONALD, and CHRISTOPHER TATE conspired to commit wire fraud, and it was the object of that conspiracy to obtain unemployment benefits from New York State.
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WADDELL, 26, ZYRELL WILLIAMS, 18, WARE, 18, PITTMAN, 22, CHRISTOPHER JOHNSON, 29, TEVIN GEORGE, 30, LEWTER, 43, and RODNEY GEORGE, 47, were all arrested yesterday and today and will be presented today before U. S. Magistrate Judge Andrew E. Krause. CUETO, 22, PIMENTEL, 21, STEADMAN, 23, LEID, 29, DEVIN WILLIAMS, 27, DANTE JOHNSON, 26, and GEORGE TATUM, 45, are all currently in state custody and will be transferred to federal custody at a later date.
SAMPSON, 24, DELGADO, 24, ROMAN, 24, ARCHER, 26, ALLEN, 25, SYNCERE TATUM, 23, LALANNE, 24, JACKSON, 23, MALLORY, 20, McDONALD, 20, TATE, 20, CUNNINGHAM, 29, and SCOTT, 27, were all arrested following the November 29, 2022, indictment.
Charts containing the names, charges, and maximum penalties for the defendants are set forth below. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Williams praised the outstanding investigative work of the FBI’s Hudson Valley Safe Streets Task Force, City of Newburgh Police Department, New York State Police, Town of New Windsor Police Department, Town of Newburgh Police Department, New York City Police Department, and Nassau County Police Department. Mr. Williams also thanked the FBI’s Westchester County Safe Streets Task Force, the New York City Department of Correction, Correction Intelligence Bureau, the Department of Labor Office of the Inspector General, and the City of Poughkeepsie Police Department for their assistance in the investigation.
This case is being handled by the Office’s White Plains Division. Assistant U. S. Attorneys Jennifer N. Ong, Ryan W. Allison, and Margaret N. Vasu 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.
COUNT[2]
DEFENDANT(S)[3]
MIN. AND MAX. PENALTIES
Count One: Conspiracy to Commit Racketeering
KASHAD SAMPSON
GEORGE DELGADO
GABRIEL ROMAN
DALLAS ARCHER
BRUCE ALLEN
SYNCERE TATUM
JOHN LALANNE
RAEKWON JACKSON
BASHIR MALLORY
MEKHI McDONALD
CHRISTOPHER TATE
KRISTOPHER BURGESS CUNNINGHAM
DEJON SCOTT
DAVON WADDELL
ZYRELL WILLIAMS
DEMETRIUS WARE
ANTONIO PITTMAN
DAQUAN CUETO
CHRISTOPHER JOHNSON
HARRY PIMENTEL
ERIC STEADMAN
DONALD LEID
TEVIN GEORGE
DEVIN WILLIAMS
DANTE JOHNSON
20 years in prison
Count Two: Assault with a Dangerous Weapon and Attempted Murder in Aid of Racketeering
ANTONIO PITTMAN
20 years in prison
Count Three: Discharge of a Firearm in Connection with a Crime of Violence
ANTONIO PITTMAN
Life in prison; Mandatory minimum sentence of 10 years in prison to run consecutive to any other sentence imposed
Count Four: Assault with a Dangerous Weapon and Attempted Murder in Aid of Racketeering
ANTONIO PITTMAN
ERIC STEADMAN
HARRY PIMENTEL
20 years in prison
Count Five: Discharge of a Firearm in Connection with a Crime of Violence
ANTONIO PITTMAN
ERIC STEADMAN
HARRY PIMENTEL
Life in prison; Mandatory minimum sentence of 10 years in prison to run consecutive to any other sentence imposed
Count Six: Assault with a Dangerous Weapon and Attempted Murder in Aid of Racketeering
ERIC STEADMAN
HARRY PIMENTEL
20 years in prison
Count Seven: Discharge of a Firearm in Connection with a Crime of Violence
ERIC STEADMAN
HARRY PIMENTEL
Life in prison; Mandatory minimum sentence of 10 years in prison to run consecutive to any other sentence imposed
Count Eight: Assault with a Dangerous Weapon and Attempted Murder in Aid of Racketeering
KASHAD SAMPSON
DALLAS ARCHER
JOHN LALANNE
RAEKWON JACKSON
20 years in prison
Count Nine: Discharge of a Firearm in Connection with a Crime of Violence
KASHAD SAMPSON
DALLAS ARCHER
JOHN LALANNE
RAEKWON JACKSON
Life in prison; Mandatory minimum sentence of 10 years in prison to run consecutive to any other sentence imposed
Count 10: Assault with a Dangerous Weapon in Aid of Racketeering
SYNCERE TATUM
GABRIEL ROMAN
CHRISTOPHER TATE
20 years in prison
Count 11: Discharge of a Firearm in Connection with a Crime of Violence
SYNCERE TATUM
GABRIEL ROMAN
CHRISTOPHER TATE
Life in prison; Mandatory minimum sentence of 10 years in prison to run consecutive to any other sentence imposed
Count 12: Assault with a Dangerous Weapon in Aid of Racketeering
KASHAD SAMPSON
GEORGE DELGADO
BRUCE ALLEN
20 years in prison
Count 13: Assault with a Dangerous Weapon and Attempted Murder in Aid of Racketeering
BASHIR MALLORY
GABRIEL ROMAN
20 years in prison
Count 14: Discharge of a Firearm in Connection with a Crime of Violence
BASHIR MALLORY
GABRIEL ROMAN
Life in prison; Mandatory minimum sentence of 10 years in prison to run consecutive to any other sentence imposed
Count 15: Assault with a Dangerous Weapon and Attempted Murder in Aid of Racketeering
BASHIR MALLORY
MEKHI McDONALD
20 years in prison
Count 16: Discharge of a Firearm in Connection with a Crime of Violence
BASHIR MALLORY
MEKHI McDONALD
Life in prison; Mandatory minimum sentence of 10 years in prison to run consecutive to any other sentence imposed
Count 17: Assault with a Dangerous Weapon and Attempted Murder in Aid of Racketeering
DAVON WADDELL
CHRISTPHER TATE
20 years in prison
Count 18: Discharge of a Firearm in Connection with a Crime of Violence
DAVON WADDELL
CHRISTPHER TATE
Life in prison; Mandatory minimum sentence of 10 years in prison to run consecutive to any other sentence imposed
Count 19: Assault with a Dangerous Weapon and Attempted Murder in Aid of Racketeering
DAQUAN CUETO
SYNCERE TATUM
MEKHI McDONALD
RAEKWON JACKSON
BASHIR MALLORY
20 years in prison
Count 20: Assault with a Dangerous Weapon and Attempted Murder in Aid of Racketeering
CHRISTOPHER JOHNSON
DONALD LEID
20 years in prison
Count 21: Discharge of a Firearm in Connection with a Crime of Violence
CHRISTOPHER JOHNSON
DONALD LEID
Life in prison; Mandatory minimum sentence of 10 years in prison to run consecutive to any other sentence imposed
Count 22: Assault with a Dangerous Weapon and Attempted Murder in Aid of Racketeering
DAVON WADDELL
SYNCERE TATUM
20 years in prison
Count 23: Discharge of a Firearm in Connection with a Crime of Violence and Drug Trafficking
DAVON WADDELL
SYNCERE TATUM
Life in prison; Mandatory minimum sentence of 10 years in prison to run consecutive to any other sentence imposed
Count 24: Assault with a Dangerous Weapon and Attempted Murder in Aid of Racketeering
TEVIN GEORGE
20 years in prison
Count 25: Discharge of a Firearm in Connection with a Crime of Violence
TEVIN GEORGE
Life in prison; Mandatory minimum of 10 years in prison to run consecutive to any other sentence imposed
Count 26: Hobbs Act Robbery
JOHN LALANNE
20 years in prison
Count 27: Discharge of a Firearm in Connection with a Crime of Violence
JOHN LALANNE
Life in prison; Mandatory minimum sentence of 10 years in prison to run consecutive to any other sentence imposed
Count 28: Hobbs Act Robbery
DAVON WADDELL
BRUCE ALLEN
20 years in prison
Count 29: Discharge of a Firearm in Connection with a Crime of Violence
DAVON WADDELL
BRUCE ALLEN
Life in prison; Mandatory minimum sentence of 10 years in prison to run consecutive to any other sentence imposed
Count 30: Hobbs Act Robbery
DAVON WADDELL
CHRISTOPHER JOHNSON
RAEKWON JACKSON
DONALD LEID
DONTE JOHNSON
20 years in prison
Count 31: Narcotics trafficking
KASHAD SAMPSON
GEORGE DELGADO
GABRIEL ROMAN
DALLAS ARCHER
BRUCE ALLEN
SYNCERE TATUM
JOHN LALANNE
RAEKWON JACKSON
BASHIR MALLORY
MEKHI McDONALD
CHRISTOPHER TATE
KRISTOPHER BURGESS CUNNINGHAM
DEJON SCOTT
DAVON WADDELL
ZYRELL WILLIAMS
DEMETRIUS WARE
ANTONIO PITTMAN
DAQUAN CUETO
CHRISTOPHER JOHNSON
ERIC STEADMAN
DONALD LEID
TEVIN GEORGE
DEVIN WILLIAMS
DANTE JOHNSON
GEORGE TATUM
COLERIDGE LEWTER
RODNEY GEORGE
Life in prison; Mandatory minimum sentence of 10 years in prison
Count 32: Possession of a Firearm in Connection with a Drug Trafficking Crime
KASHAD SAMPSON
GEORGE DELGADO
GABRIEL ROMAN
DALLAS ARCHER
BRUCE ALLEN
SYNCERE TATUM
JOHN LALANNE
RAEKWON JACKSON
BASHIR MALLORY
MEKHI McDONALD
CHRISTOPHER TATE
KRISTOPHER BURGESS CUNNINGHAM
DEJON SCOTT
DAVON WADDELL
ZYRELL WILLIAMS
DEMETRIUS WARE
ANTONIO PITTMAN
DAQUAN CUETO
CHRISTOPHER JOHNSON
ERIC STEADMAN
DONALD LEID
TEVIN GEORGE
DEVIN WILLIAMS
DANTE JOHNSON
GEORGE TATUM
COLERIDGE LEWTER
RODNEY GEORGE
Life in prison; Mandatory minimum sentence of five years in prison to run consecutive to any other sentence imposed
Count 33: Wire Fraud Conspiracy
KASHAD SAMPSON
GEORGE DELGADO
GABRIEL ROMAN
BRUCE ALLEN
SYNCERE TATUM
JOHN LALANNE
BASHIR MALLORY
MEKHI McDONALD
CHRISTOPHER TATE
20 years in prison
Count 34: Aggravated Identity Theft
GABRIEL ROMAN
BASHIR MALLORY
20 years in prison; Mandatory minimum sentence of two years in prison to run consecutive to any other sentence imposed
[1] As the introductory phrase signifies, the entirety of the text of the Indictments and the description of the Indictments set forth herein constitute only allegations, and every fact described should be treated as an allegation.
[2] Additional charges, which did not appear in the November 29, 2022, indictment, appear in bold.
[3] Additional defendants, who were not named in the November 29, 2022, indictment, appear in bold.
Statement of U.S. Attorney Damian Williams on the Convictions of Ronald Glen Davis and William BynumRead the Press Release
“Moments ago, a Manhattan jury convicted former NBA players Ronald Glen Davis and William Bynum of a criminal scheme to defraud the NBA Players’ Health and Benefit Welfare Plan. While many of the more than 20 defendants convicted in this case were well-known NBA stars, their conduct was otherwise a typical fraudulent scheme designed to defraud the NBA’s health care plan and net the defendants over $5 million in illicit profits. Today’s conviction exemplifies that despite notoriety or success in sports or any other field, no one is exempt from criminal charges if they engage in fraud.”
Largest-Ever Counterfeit Goods Seizures Result in Trafficking Charges Against Two IndividualsRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, Ivan J. Arvelo, the Special Agent in Charge of the New York Field Office of Homeland Security Investigations (“HSI”), and Edward A. Caban, the Commissioner of the New York City Police Department (“NYPD”), announced the recent seizures of approximately 219,000 counterfeit bags, clothes, shoes, and other luxury products with a total estimated manufacturer’s suggested retail price (“MSRP”) of approximately $1.03 billion.[1] Two indictments were unsealed today charging ADAMA SOW and ABDULAI JALLOH, a/k/a “Troy Banks,” with trafficking in counterfeit goods. The defendants were arrested this morning and presented before U.S. Magistrate Judge Robert W. Lehrburger. SOW’s case is assigned to U.S. District Judge Valerie E. Caproni. JALLOH’s case is assigned to U.S. District Judge Paul A. Crotty.
U.S. Attorney Damian Williams said: “As alleged, the defendants used a Manhattan storage facility as a distribution center for massive amounts of knock-off designer goods. The seizures announced today consist of merchandise with over a billion dollars in estimated retail value, the largest-ever seizure of counterfeit goods in U.S. history. This is a testament to the commitment of this Office and its law enforcement partners to combat counterfeit trafficking in New York City.”
HSI Special Agent in Charge Ivan J. Arvelo said: “Today's groundbreaking announcement underscores the unwavering commitment of HSI New York in the fight against intellectual property theft and serves as a testament to the dedication of our team and partner agencies, who have tirelessly pursued justice, culminating in the largest-ever seizure of this kind. I extend my gratitude to all those involved for their relentless efforts and late nights dedicated to upholding the law.”
NYPD Commissioner Edward A. Caban said: “The trafficking of counterfeit goods is anything but a victimless crime because it harms legitimate businesses, governments, and consumers. Today’s indictments show how seriously the NYPD and our federal partners take this offense. And we will continue to work hard to hold accountable anyone who seeks to benefit by selling such items on the black market.”
According to the allegations contained in the Indictments and other publicly available information:[2]
From about January 2023, up to and including October 20, 2023, ADAMA SOW and ABDULAI JALLOH ran large-scale counterfeit goods trafficking operations out of a storage facility located in Manhattan. JALLOH also trafficked counterfeit goods out of an offsite location in Manhattan. Searches of premises controlled by SOW have resulted in the seizure of over 83,000 counterfeit items with a total estimated MSRP of over $502 million. Searches of premises controlled by JALLOH have resulted in the seizure of over 50,000 counterfeit items with a total estimated MSRP of over $237 million.
A photograph of boxes of counterfeit goods seized from the storage facility is below.
A photograph of one of the storage units controlled by ADAMA SOW inside the storage facility is below.
A photograph of one of the storage units controlled by ABDULAI JALLOH inside the storage facility is below.
* * *
ADAMA SOW, 38, of Queens, New York, and ABDULAI JALLOH, 48, of New York, New York, are each charged with trafficking in counterfeit goods, which carries a maximum sentence of 10 years in prison.
The statutory maximum penalty is prescribed by Congress and is provided here for informational purposes only, as the sentencing of the defendants will be determined by the judge.
Mr. Williams praised the outstanding work of HSI and NYPD. He further thanked U.S. Customs and Border Protection for its assistance and the management of the storage facility in Manhattan for its cooperation with the execution of the seizures.
The cases are being handled by the Office’s General Crimes Unit. Assistant U.S. Attorney Henry Ross is in charge of the prosecutions.
The charges contained in the Indictments are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] The street value of counterfeit goods typically is significantly lower than the MSRP.
[2] As the introductory phrase signifies, the entirety of the text of the Indictments and the description of the Indictments set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Bronx Man Charged in Shooting Outside Apartment BuildingRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, James Smith, the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), and Edward A. Caban, the Commissioner of the New York City Police Department (“NYPD”), announced the unsealing of a Complaint charging DANTE PETTEWAY with illegally possessing ammunition in connection with a shooting by PETTEWAY in front of a residential building in the Bronx on June 21, 2023. PETTEWAY was arrested last night and presented today before U.S. Magistrate Judge Robert W. Lehrburger.
U.S. Attorney Damian Williams said: “As alleged, earlier this summer, Dante Petteway opened fire in a residential neighborhood in the Bronx, endangering not only the life of his intended victim, but also the lives of others in the community. Thanks to our partners at the FBI and the NYPD as well as the career prosecutors of this Office, who have a longstanding history of combatting violent crime in the city, the defendant has now been apprehended.”
NYPD Commissioner Edward A. Caban said: “This arrest is another example of methodical policing in action. The NYPD and our law enforcement partners are dedicated to identifying and charging anyone responsible for driving crime and violence in New York City. The diligence of our NYPD detectives and our colleagues at the FBI and the office of the U.S. Attorney for the Southern District has resulted in one less criminal on our streets today.”
According to the allegations in the Complaint:[1]
On June 21, 2023, at approximately 8:20 p.m., PETTEWAY, accompanied by another individual, walked down the sidewalk of East 167th Street in the Bronx, drew a firearm, and shot multiple rounds across the street. Below is a still image of PETTEWAY showing PETTEWAY as he fired the gun.
After shooting the firearm, PETTEWAY ran into a nearby apartment building while holding the firearm in his right hand. A still image from the surveillance footage with PETTEWAY holding the firearm in his right hand is below.
Upon canvassing the scene, NYPD officers recovered five shell casings and also located a vehicle that had been damaged by several bullet holes. Photographs of several of the recovered shell casings are provided below.
PETTEWAY was not permitted to possess ammunition because of a prior felony conviction for robbery.
* * *
PETTEWAY, 27, of the Bronx, New York, is charged with one count of possession of ammunition after a felony conviction, which carries a maximum sentence of 15 years in prison.
The statutory maximum penalty 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 investigative work of the FBI and NYPD.
This case is being handled by the Office’s General Crimes Unit. Assistant U.S. Attorney Georgia V. Kostopoulos is in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth below constitute only allegations, and every fact described should be treated as an allegation.
Recidivist Cocaine Trafficker Convicted of Sending Hundreds of Kilograms of Cocaine Hidden Inside FurnitureRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced the conviction in Manhattan federal court of OMAR LOPEZ CASTRO for his participation in a cocaine trafficking scheme between 2018 and 2022. The jury convicted LOPEZ CASTRO following a one-week trial before U.S. District Judge P. Kevin Castel. Sentencing of LOPEZ CASTRO is scheduled for February 22, 2024.
U.S. Attorney Damian Williams said: “The unanimous jury verdict holds Omar Lopez Castro accountable for his leadership role in a widespread cocaine trafficking organization that flooded the streets with hundreds of millions of dollars’ worth of cocaine. After serving a 10-year sentence for a prior SDNY cocaine trafficking conviction, Lopez Castro returned to trafficking hundreds of kilograms of his cocaine, this time hidden inside of furniture. He now faces the prospect of a lengthy prison sentence for his crime.”
According to the allegations contained in the Superseding Indictment and the evidence presented in court during the trial:
LOPEZ CASTRO was a member of a drug trafficking organization (“DTO”) that engaged in a cocaine-trafficking scheme between 2018 and 2022 involving the concealment of cocaine inside custom-built furniture. Between in or about September 2018 and October 2022, the DTO sent more than 30 shipments of cargo from Puerto Rico to the continental United States. The cocaine was concealed in more than approximately 80 custom cube-shaped coffee tables or other furniture. While the organization falsely represented that the cargo contained furniture, that furniture in fact concealed hundred-kilogram quantities of cocaine. During the course of the investigation, law enforcement seized approximately 350 kilograms of cocaine from four of the DTO’s shipments. In total, the DTO shipped approximately 4,500 kilograms of cocaine, worth at least $135,000,000 on the street. Many of the organization’s shipments were sent to addresses in the Southern District of New York including in Yonkers and the Bronx. Others were sent up and down the East Coast.
LOPEZ CASTRO was a Puerto Rico-based member of the DTO who owned approximately 274 kilograms of cocaine shipped from Puerto Rico to New Jersey and Pennsylvania. Soon after his release from federal prison from a prior conviction in the Southern District of New York for trafficking cocaine from Puerto Rico to New York, LOPEZ CASTRO connected with other members of the DTO and hired the DTO members to ship his cocaine inside of custom-built furniture. All told, the street value of cocaine that LOPEZ CASTRO owned and trafficked was more than $8 million.
* * *
LOPEZ CASTRO, 48, of Carolina, Puerto Rico, was found guilty of conspiring to distribute and possess with the intent to distribute narcotics, which carries a mandatory minimum sentence of 10 years in prison and a maximum sentence of life in prison.
The statutory minimum and maximum 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.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (“OCDETF”) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Mr. Williams praised the outstanding investigative work of the New York City Police Department; the Drug Enforcement Administration; the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the U.S. Postal Inspection Service; and the Department of Homeland Security, Homeland Security Investigations in this investigation.
The prosecution is being handled by the Office’s Narcotics Unit. Assistant U.S. Attorneys Juliana N. Murray and Andrew Jones, with the assistance of Paralegal Specialists Jacqueline Hauck and Sabrina Jim Munoz, are in charge of the prosecution.
Leader of Georgian Crime Syndicate and Associates Charged with Extortion OffensesRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, and James Smith, 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 VAZHA GABADADZE, a/k/a “Natan Yusupov,” KAKHA KATSADZE, TEIMURAZ TAVBERIDZE, a/k/a “Tava,” and DAVIT TIKARADZE, a/k/a “Dato,” with extortion offenses. GABADADZE, KATSADZE, TAVBERIDZE, and TIKARADZE were arrested today and will be presented this afternoon before U.S. Magistrate Judge Robert W. Lehrburger.
U.S. Attorney Damian Williams said: “As alleged in the indictment, Gabadadze, a leader within an international criminal syndicate, and his associates threatened their victim with physical violence in order to extract money. Thanks to the dedication of the FBI and the prosecutors of this Office, all four defendants now face federal charges.”
FBI Assistant Director in Charge James Smith said: “Forcing a victim to pay money using intimidation and threats of violence is illegal and not how business is conducted in our city. This illicit behavior is exactly what these defendants are alleged to have conspired to carry out over several months. The FBI will not stand idly by while organized crime members take part in violence and extortion, instead we will hold them accountable in the criminal justice system.”
As alleged in the Indictment:[1]
From about September 2022 through about August 2023, GABADADZE, KATSADZE, TAVBERIDZE, and TIKARADZE engaged in a scheme of extortion. GABADADZE is a leader within an organized criminal group. He holds the title of “vor v zakone” or “vor,” which are Russian phrases translated roughly as “Thief-in-Law” or “Thief,” and which refer to an order of elite criminals from the former Soviet Union who receive tribute from other criminals, offer protection, and use their recognized status as “vor” to adjudicate disputes among lower-level criminals. As part of the organized criminal group, GABADADZE and his associates, KATSADZE, TAVBERIDZE, and TIKARADZE, induced their victim to make monetary payments through the use of threatened force and fear.
* * *
GABADADZE, 41, KATSADZE, 45, TAVBERIDZE, 54 and TIKARADZE, 53, all of Kutaisi, Georgia, are each charged with one count of conspiracy to commit extortion and one count of extortion. Each count 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 FBI. Mr. Williams also thanked U.S. Customs and Border Protection and the New York City Police Department for their assistance in the investigation.
This case is being handled by the Office’s Money Laundering and Transnational Criminal Enterprises and General Crimes Units. Assistant U.S. Attorneys Anden Chow and Chelsea 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.
[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 herein should be treated as an allegation.
Defendant Sentenced to 90 Months in Prison for Distribution of Child PornographyRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced today that EFREM ZELONY-MINDELL was sentenced to 90 months in prison by U.S. District Judge Paul A. Engelmayer for distribution of child pornography.
According to documents filed in this case and statements made in related court proceedings:
From April 2022 to December 2022, ZELONY-MINDELL communicated with two undercover Federal Bureau of Investigation (“FBI”) agents on an encrypted messaging service. In the conversations, ZELONY-MINDELL repeatedly expressed in graphic and unambiguous terms their desire to engage in sexual activity with minor children and sent the undercover agents numerous images and videos containing child pornography.
In conversations with one of the undercover agents who was posing as the father of a nine-year-old boy, ZELONY-MINDELL made clear that they wanted to engage in sexual activity with the purported child. ZELONY-MINDELL and the undercover agent discussed a plan to meet for the purpose of ZELONY-MINDELL engaging in sexual activity with the child. When told by the undercover agent that the child would be “knocked out a little bit” on sleep medication during the planned sexual activity, ZELONY-MINDELL agreed to have sex with the drugged child.
ZELONY-MINDELL and the undercover agent agreed to meet on December 16, 2022, in lower Manhattan with the understanding that they would return to the undercover agent’s apartment afterward, and ZELONY-MINDELL would then engage in sexual activity with the child. ZELONY-MINDELL arrived at the scheduled time and location and was arrested. Subsequently, law enforcement identified thousands of images and videos containing child pornography on the defendant’s phones and computers.
* * *
In addition to the prison term, ZELONY-MINDELL, 36, of Fayetteville, Arkansas, was sentenced to five years of supervised release.
Mr. Williams praised the efforts of the FBI and the members of the Child Exploitation and Human Trafficking Task Force in connection with this investigation.
The prosecution of this case is being handled by the Office’s General Crimes Unit. Assistant U. S. Attorney Lisa Daniels is in charge of the prosecution.
Manhattan Fentanyl and Methamphetamine Trafficker Convicted of Drug Trafficking, Conspiracy, and Firearms OffensesRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that a jury returned a guilty verdict on November 9, 2023, against MOUNIR MRABET on four counts in a Superseding Indictment, including charges of narcotics conspiracy, narcotics trafficking, and a firearms offense. MRABET will be sentenced at a later date by U.S. District Judge Jed S. Rakoff, who presided over the trial.
U.S. Attorney Damian Williams said: “The defendant was a prolific methamphetamine and fentanyl trafficker who received these dangerous drugs in the mail and sold them in wholesale quantities to other drug dealers in the heart of Manhattan. He also used a gun to protect his drug enterprise. His conviction should serve as a message to anyone who profits from fueling the methamphetamine and opioid crisis that continues to devastate our city and country: this Office is committed to prosecuting those responsible to the fullest extent of the law.”
According to the evidence presented at trial:
From about July 2022 to about January 5, 2023, MOUNIR MRABET coordinated with suppliers in Mexico and California to receive boxes of crystal methamphetamine and fentanyl in the mail. He then worked with co-conspirators to distribute wholesale quantities of these drugs to other drug dealers in New York City.
On January 5, 2023, a search warrant was executed on the defendant’s Manhattan apartment after he was recorded selling drugs to an undercover detective, including fake oxycodone pills laced with fentanyl. The search recovered approximately 24 pounds of methamphetamine, most of it pure, and half a pound of fentanyl powder. At trial, text messages, photographs, and video evidence established that the defendant regularly supplied numerous drug dealers with bags of drugs, often in pound quantities, and that he also used a firearm and threats to protect and promote his drug operations.
* * *
MRABET, 40, of New York, New York, was convicted of (i) one count of conspiracy to distribute and possess with intent to distribute methamphetamine and fentanyl; (ii) two counts of distribution and possession with intent to distribute methamphetamine and fentanyl; and (iii) one count of use, carrying, and possession of a firearm in connection with, and in furtherance of, the narcotics conspiracy. The charges carry a mandatory minimum sentence of 15 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 will be determined by the judge.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (“OCDETF”) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Mr. Williams praised the outstanding investigative work of the New York City Police Department; Task Force Officers assigned to the U.S. Attorney’s Office for the Southern District of New York; the Department of Homeland Security, Homeland Security Investigations; and the Drug Enforcement Administration. Mr. Williams also thanked the U.S. Attorney’s Office for the Southern District of California for their assistance in this investigation.
This case is being handled by the Office’s Narcotics Unit. Assistant U.S. Attorneys Jane Y. Chong, Edward C. Robinson, Jr., and Jun Xiang, with the assistance of Paralegal Specialist Alex Frenchman, are in charge of the prosecution.
“Head of Legal and Compliance” for Multibillion-Dollar Cryptocurrency Pyramid Scheme “OneCoin” Pleads GuiltyRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that IRINA DILKINSKA pled guilty today in Manhattan federal court to wire fraud and money laundering charges in connection with her participation in the massive OneCoin fraud scheme. OneCoin, which began operations in 2014 and was based in Sofia, Bulgaria, marketed and sold a fraudulent cryptocurrency by the same name through a global multi-level-marketing (“MLM”) network. As a result of misrepresentations made about OneCoin, victims invested over $4 billion worldwide in the fraudulent cryptocurrency. Today, U.S. District Judge Edgardo Ramos accepted DILKINSKA’s guilty plea.
U.S. Attorney Damian Williams said: “As OneCoin’s so-called ‘Head of Legal and Compliance’ Irina Dilkinska accomplished the exact opposite goal of her position. As she has now admitted, Dilkinska facilitated the laundering of millions of dollars of illicit profits OneCoin accrued through its multi-level-marketing scheme. The dedicated prosecutors of this Office and our law enforcement partners will continue to pursue this important case until every defendant is brought to justice.”
According to the allegations in the Superseding Information and other filings and statements made in court:
In 2014, RUJA IGNATOVA, a/k/a “the Cryptoqueen,” and KARL SEBASTIAN GREENWOOD co-founded OneCoin,[1] a company based in Sofia, Bulgaria, that marketed a purported cryptocurrency by the same name, which was in fact a fraudulent pyramid scheme. OneCoin operated as a MLM network through which members received commissions for recruiting others to purchase cryptocurrency packages. This MLM structure influenced rapid growth of the OneCoin member network. Indeed, according to OneCoin’s promotional materials, over three million people invested in fraudulent cryptocurrency packages. OneCoin records show that between the fourth quarter of 2014 and the fourth quarter of 2016 alone, OneCoin generated €4.037 billion in sales revenue and earned “profits” of €2.735 billion.
DILKINSKA was the purported Head of Legal and Compliance for OneCoin. But rather than ensuring that OneCoin complied with the law, DILKINSKA assisted in running its day-to-day operations and laundered money for OneCoin, including arranging for the transfer of $110 million in fraudulently obtained OneCoin proceeds to a Cayman Islands entity.
On October 12, 2017, IGNATOVA was charged with OneCoin-related fraud and money laundering charges in the U.S. District Court for the Southern District of New York and a federal warrant was issued for her arrest. On October 25, 2017, IGNATOVA traveled on a commercial flight from Sofia, Bulgaria, to Athens, Greece; she has not been seen publicly since. IGNATOVA was added to the Federal Bureau of Investigation’s (“FBI”) Top Ten Most Wanted List in June 2022. The FBI is offering a $100,000 reward for information leading to IGNATOVA’s arrest.
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DILKINSKA, 42, a citizen of Bulgaria, pled guilty to one count of conspiracy to commit wire fraud, which carries a maximum potential sentence of five years in prison, and one count of conspiracy to commit money laundering, which also carries a maximum potential sentence of five years in prison.
The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as the sentencing of the defendant will be determined by a judge. Sentencing before Judge Ramos is scheduled for February 14, 2024, at 10:00 a.m.
Mr. Williams praised the outstanding investigative work of the Internal Revenue Service-Criminal Investigation and the FBI, which jointly conducted this investigation with Special Agents from the U.S. Attorney’s Office.
If you have any information about IGNATOVA’s whereabouts, please contact your local FBI office or the nearest American Embassy or Consulate. Tips can be reported anonymously and can also be reported online at tips.fbi.gov.
The case is being prosecuted by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Nicholas Folly, Juliana N. Murray, and Kevin Mead are in charge of the prosecution.
[1] OneCoin has operated using several corporate entities and d/b/a names, including “OneCoin Ltd.,” “OnePayments Ltd.,” “OneNetwork Services Ltd.,” “OneAcademy,” and “OneLife.” These entities and d/b/a names are referred to collectively here as “OneCoin.”
Two Men Charged with Orchestrating $7 Million Investment Fraud SchemeRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, and James Smith, the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced that DERRICK HODGE and ISAAC BRIGGS III have been charged with running an investment fraud scheme through which they defrauded investors of approximately $7 million and misappropriated over $1.5 million of investor funds for personal use. HODGE and BRIGGS III were arrested today. BRIGGS III will be presented today in the U.S. District Court for the Southern District of New York, and HODGE will be presented today in the U.S. District Court for the Eastern District of Louisiana.
U.S. Attorney Damian Williams said: “As alleged, Derrick Hodge and Isaac Briggs III solicited millions of dollars of victim investments based on false promises of outsized returns. Instead of using those funds to generate profits for investors, as promised, Hodge and Briggs III allegedly took those investments for themselves, using investor funds to pay for personal travel, entertainment, and luxury fashion purchases. As we’ve shown time and time again, this Office will be tireless in prosecuting those who misappropriate investor funds to line their own pockets.”
FBI Assistant Director in Charge James Smith said: “For more than three years, Hodge and Briggs allegedly misled and deceived their victims out of more than seven million in investment funds, which they used in part for their own personal expenses. Investment fraud schemes not only can ruin a victim’s life savings, but also erode the public’s faith in our financial institutions. The FBI will continue to ensure that unscrupulous actors attempting to swindle investors are brought to justice.”
As alleged in the Complaint:[1]
From at least October 2020 through at least in or about November 2023, DERRICK HODGE and ISAAC BRIGGS III operated an investment fraud scheme that defrauded at least seven victims of at least $7 million. HODGE and BRIGGS III operated this fraudulent scheme through their operation of the Heritage Integrity Investment Trust (“HIIT”). HODGE and BRIGGS III falsely represented that victim funds would be invested in HIIT’s private placement trading program that would provide a return of five times the initial investment.
HODGE and BRIGGS III did not invest victim funds in any trading program. Instead, HODGE and BRIGGS III transferred their victims’ investments through intermediary accounts to their personal accounts and used them to make payments for personal expenses such as food, travel, entertainment, and luxury goods.
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HODGE, 52, of Avondale, Louisiana, and BRIGGS III, 52, of Somerset, New Jersey, are each charged with one count of conspiracy to commit wire fraud, one count of wire fraud, and one count of conspiracy to commit money laundering, each of which carries a maximum sentence of 20 years in prison. BRIGGS III is also charged with one count of aggravated identity theft, which carries a statutory mandatory penalty of two years in prison, which must run consecutively to any other prison term.
The maximum potential 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 investigative work of the FBI.
This case is being supervised by the Office’s General Crimes Unit. Assistant U.S. Attorney William C. Kinder is in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Former High-Ranking DEA Special Agent and Current DEA Agent Convicted for Bribery SchemeRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced yesterday that JOHN COSTANZO JR., a Drug Enforcement Administration (“DEA”) Special Agent currently on leave, and MANUEL RECIO, a former DEA Assistant Special Agent in Charge, were convicted of conspiracy to bribe a public official, conspiracy to commit honest services wire fraud, and honest services wire fraud, for a scheme in which RECIO funneled tens of thousands of dollars to COSTANZO in exchange for COSTANZO providing sensitive law enforcement information to assist RECIO in recruiting clients for defense lawyers. In addition, COSTANZO was convicted of accepting bribes from RECIO, and RECIO was convicted of giving bribes to COSTANZO. The verdict followed a 12-day trial before U.S. District Judge J. Paul Oetken.
U.S. Attorney Damian Williams said: “John Costanzo, a DEA Special Agent on leave, and Manuel Recio, a former DEA Assistant Special Agent in Charge, trafficked sensitive, nonpublic, confidential law enforcement information in exchange for cash and other valuable financial benefits. In doing so, they endangered public safety by disclosing the timing of sealed indictments and arrests of DEA targets. Recio and Costanzo were convicted by a unanimous jury for their brazen violation of the public’s trust and for providing information that could have put their former colleagues and others in harm’s way. This case underscores that corruption in the ranks of any law enforcement agency will be met with zero tolerance, and we stand with the overwhelming majority of law enforcement officers who carry out their service with integrity and honor.”
According to the evidence presented in court during the trial:
JOHN COSTANZO JR. is a DEA special agent most recently assigned to DEA Headquarters. He was a Group Supervisor in the DEA’s Miami Field Office until June 2019. MANUEL RECIO is a former DEA special agent who retired as the Assistant Special Agent in Charge for the Miami Field Office in November 2018. Upon his retirement, RECIO began operating his own business, which provided private investigative services to criminal defense attorneys and also helped defense attorneys to recruit clients. From around the time of RECIO’s retirement through around November 2019, RECIO agreed with COSTANZO to provide benefits to COSTANZO in exchange for COSTANZO providing RECIO with nonpublic information about DEA investigations. COSTANZO provided RECIO with information about nonpublic investigations, such as the identities of individuals charged and the anticipated timing of indictments and arrests, and intelligence which COSTANZO obtained from the Narcotics and Dangerous Drugs Information System (“NADDIS”), a DEA database that contains information about individuals who are or have been under investigation by the DEA. RECIO paid COSTANZO for this information, which RECIO used to help recruit new clients for criminal defense attorneys.
Among the benefits paid to COSTANZO were a $2,500 payment made in November 2018, shortly after RECIO’s retirement from the DEA, which was funneled to COSTANZO through a company owned by a close family member of COSTANZO. At the same time that this payment was made, RECIO began asking COSTANZO to run searches in NADDIS to provide RECIO with nonpublic DEA information about DEA targets and investigations. Following that initial payment, RECIO and others continued to provide benefits to COSTANZO, including tens of thousands of dollars that were funneled from RECIO through a company created by a DEA task force officer and $50,000 that was paid to COSTANZO through a close family member for COSTANZO’s purchase of a condominium in January and February 2019.
In return, COSTANZO continued to provide nonpublic DEA information to RECIO, including information about the timing of forthcoming indictments and information about DEA arrest plans of particular targets. COSTANZO also searched NADDIS for names of particular individuals requested by RECIO on dozens of occasions during the scheme and provided RECIO with information and assistance with particular charged defendants represented by attorneys for whom REICO was working. During the scheme, COSTANZO and RECIO took steps to conceal the existence of the scheme, including by structuring the payments from RECIO to COSTANZO through third parties and through COSTANZO’s use of a cellphone provided by RECIO for communications related to the scheme.
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COSTANZO JR., 48, of Arlington, Virginia, and RECIO, 54, of Miami, Florida, were each convicted of one count of conspiracy to commit bribery, which carries a maximum term of five years in prison, and one count of receiving or paying a bribe, respectively, which carries a maximum term of 15 years in prison. COSTANZO and RECIO were also convicted of one count of conspiracy to commit honest services wire fraud and one count of honest services wire fraud, each of which carries a maximum term of 20 years in prison.
The maximum potential sentences in this case are prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Williams praised the outstanding investigative work of the Federal Bureau of Investigation and the Department of Justice Office of the Inspector General and thanked the DEA’s Office of Professional Responsibility for its support in this matter.
The prosecution is being handled by the Office’s Money Laundering and Transnational Criminal Enterprises Unit. Assistant U.S. Attorneys Mathew Andrews, Emily Deininger, Sheb Swett, Nathan Rehn, and Sarah Mortazavi are in charge of the prosecution, with the assistance of Paralegal Specialists Dean Iannuzzelli and Nerlande Pierre.
Bronx Man Charged with Stealing Hundreds of Thousands of Dollars’ Worth of Construction Utility Vehicles from NYCHA Housing DevelopmentsRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, and Jocelyn E. Strauber, the Commissioner of the New York City Department of Investigation (“DOI”), announced today the unsealing of a Complaint charging MAXIMO NUNEZ with theft of government property and conspiracy to commit theft of government property in connection with a years-long scheme in which he and others stole valuable construction utility vehicles (“Utility Vehicles”) from New York City Housing Authority (“NYCHA”) developments. NUNEZ was arrested this morning and will be presented before U.S. Magistrate Judge Sarah Netburn later today.
U.S. Attorney Damian Williams said: “As alleged, the defendant and others carried out a brazen scheme for years, stealing hundreds of thousands of dollars in valuable construction equipment that NYCHA needed to maintain the many public housing developments that thousands of New Yorkers call home. Thanks to the persistent efforts of the New York City Department of Investigation and the Special Agents and career prosecutors of my Office, this man now stands charged with this bold scheme.”
DOI Commissioner Jocelyn E. Strauber said: “As charged, Nunez and other co-conspirators stole at least 16 utility vehicles worth over several hundred thousand dollars from NYCHA. These vehicles are used to maintain NYCHA facilities for residents. NYCHA referred this matter to DOI and cooperated in this investigation, which involved the placement of GPS tracking devices on certain NYCHA utility vehicles and allowed law enforcement to recover one of the allegedly stolen vehicles. I thank the U.S. Attorney’s Office for the Southern District of New York for their partnership in this investigation and their commitment to hold accountable those who steal valuable government property.”
According to the allegations contained in the Complaint:[1]
From in or about January 2021 through in or about September 2022, on at least 13 different occasions, NUNEZ and three other co-conspirators (“CC-1,” “CC-2,” and “CC-3”) stole at least 16 Utility Vehicles from over a dozen NYCHA developments throughout New York City. Utility Vehicles are pieces of heavy equipment that NYCHA uses to complete regular construction and maintenance tasks.
NUNEZ and others stole the Utility Vehicles in the middle of the night when NYCHA employees were not present. They often used large trucks to carry out their scheme so that they could steal more than one Utility Vehicle at a time. Photographs taken from surveillance video of two of the thefts are below:
Utility Vehicles often retail for anywhere from $25,000 to $65,000 each. NUNEZ and others made hundreds of thousands of dollars by selling the Utility Vehicles to individuals who did not know that they were stolen.
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NUNEZ, 28, of the Bronx, New York, is charged with one count of conspiracy to commit theft of government property, which carries a maximum potential sentence of five years in prison, and one count of theft of government property, which carries a maximum potential sentence of 10 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 DOI and the Special Agents and Investigative Analysts of the U.S. Attorney’s Office.
This case is being handled by the Office’s General Crimes Unit. Assistant U.S. Attorney Jackie Delligatti is in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth herein constitute only allegations, and every fact described herein should be treated as an allegation.
Statement of U.S. Attorney Damian Williams on the Conviction of John Costanzo and Manuel RecioRead the Press Release
“John Costanzo, a DEA Special Agent on leave, and Manuel Recio, a former DEA Assistant Special Agent in Charge, trafficked sensitive, non-public, confidential law enforcement information in exchange for cash and other valuable financial benefits. In doing so, they endangered public safety by disclosing the timing of sealed indictments and arrests of DEA targets. Moments ago, Recio and Costanzo were convicted by a unanimous jury for their brazen violation of the public’s trust and for providing information that could have put their former colleagues and others in harm’s way. This case underscores that corruption in the ranks of any law enforcement agency will be met with zero tolerance, and we stand with the overwhelming majority of law enforcement officers who carry out their service with integrity and honor.”
Disbarred Attorney Charged in COVID-19 Relief Loan Fraud SchemeRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, and James Smith, the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced the unsealing of an Indictment today charging DOUGLAS RAYMOND ARNTSEN with masterminding a fraudulent scheme to obtain more than $1.3 million in government-funded loans designed to provide relief to small businesses during the COVID-19 pandemic. ARNTSEN was arrested this morning and presented this afternoon before U.S. Magistrate Judge Sarah Netburn. The case is assigned to U.S. District Judge P. Kevin Castel.
U.S. Attorney Damian Williams said: “As alleged, Douglas Raymond Arntsen, a disbarred attorney, recruited multiple co-conspirators in a scheme to defraud the government out of more than $1 million by submitting fraudulent loan applications. These loans were funded by the American taxpayers and meant to help small businesses struggling from the effects of the COVID-19 pandemic. They were not meant to line people’s pockets for personal gain. Today’s arrest demonstrates this Office’s ongoing commitment to holding accountable those who illegally profited from a national emergency.”
FBI Assistant Director in Charge James Smith said: “Arntsen allegedly recruited people who were facing financial stress amidst an unprecedented global pandemic into a fraudulent scheme to illegally obtain $1.3 million in COVID-19 relief funds intended for small businesses. COVID-19 relief schemes abuse a government funded program that was designed to help small businesses who were struggling during a time of economic confusion. The FBI will bring to justice anyone who attempted to fraudulently exploit COVID-19 relief programs for their personal benefit.”
According to the allegations in the Indictment, which was unsealed today:[1]
Between in or about June 2020 through at least in or about August 2020, DOUGLAS RAYMOND ARNTSEN orchestrated a scheme to defraud the Small Business Administration (“SBA”) by submitting fraudulent loan applications through the Economic Injury Disaster Loan (“EIDL”) Program. In doing so, ARNTSEN recruited multiple co-conspirators. ARNTSEN promised potential co-conspirators a way out of their difficult financial circumstances. Certain of those co-conspirators trusted ARNTSEN because they thought he was an attorney. In reality, ARNTSEN had been disbarred.
ARNTSEN asked his co-conspirators to give him their personal information, including social security and driver’s license numbers, and then used this information to submit fraudulent loan applications to the EIDL program. The applications submitted by ARNTSEN falsely claimed that the co-conspirators owned businesses that had substantial revenue. Often, the co-conspirators named as owners of the businesses, in fact, had no legitimate connection to the businesses at all. After the loan applications were submitted, ARNTSEN directed his co-conspirators to lie to the SBA during the loan diligence process.
ARNTSEN also directed his co-conspirators to recruit additional participants to his fraudulent scheme. After one co-conspirator had obtained a fraudulent loan, ARNTSEN directed him, in sum and substance, to “[g]et me one more warm body.” The co-conspirator proceeded to give ARNTSEN the personal information of a relative, which was then used to obtain another fraudulent loan.
ARNTSEN and his co-conspirators enriched themselves through the fraud. In total, ARNTSEN and his co-conspirators obtained at least approximately $1.3 million in fraudulent loans and attempted to obtain hundreds of thousands of dollars of additional loans that the SBA declined to fund. After one fraudulent loan was approved by the SBA, ARNTSEN texted a co-conspirator, in sum and substance, “Need how you want your bank checks. Your chariot has arrived this morning.”
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ARNTSEN, 45, of Staten Island, New York, is charged with one count of conspiracy to commit wire fraud, which carries a maximum sentence of 20 years in prison; one count of wire fraud, which carries a maximum sentence of 20 years in prison; and one count of aggravated identity theft, which carries a mandatory consecutive sentence of two years in prison.
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.
Mr. Williams praised the outstanding investigative work of the FBI and additionally thanked the Suffolk County District Attorney’s Office for its assistance.
This case is being handled by the Office’s General Crimes Unit. Assistant U.S. Attorney Adam Sowlati is in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the Indictment and the description of the Indictment set forth herein constitute only allegations, and every fact described should be treated as an allegation.
California Man Sentenced to 102 Months in Prison for Multimillion-Dollar Stolen Identity SchemeRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced earlier today that RUSSELL DWAYNE LEWIS, a/k/a “Clifford Ari Getz,” a/k/a “Clifford Ari Getz Cohen,” a/k/a “Ari Getz,” a/k/a “Aryeh Getz,” was sentenced by U.S. District Chief Judge Laura Taylor Swain to 102 months in prison for defrauding multiple individuals out of millions of dollars over a period of years, using several aliases and stolen identities. LEWIS previously pled guilty to two counts of wire fraud and one count of aggravated identify theft.
U.S. Attorney Damian Williams said: “Russell Dwayne Lewis orchestrated a sophisticated fraud and stolen identity scheme to engage in a pattern of serial fraud, seeking to defraud friends, associates, and a major corporation by lying about his identity, wealth, and business activities. As today’s sentence demonstrates, serial fraudsters like Lewis will be caught and brought to justice for their crimes.”
According to the charging documents and other filings and statements made in court:
Between 2016 and 2020, RUSSELL DWAYNE LEWIS, a/k/a “Clifford Ari Getz,” a/k/a “Clifford Ari Getz Cohen,” a/k/a “Ari Getz,” a/k/a “Aryeh Getz,” engaged in a series of brazen schemes to misrepresent his identity, his wealth, and his professional and personal background in order to defraud multiple individuals and at least one corporate entity. LEWIS used aliases for years, utilizing the name, birth date, and social security number of real individuals to perpetrate his schemes. LEWIS told increasingly outrageous lies to individuals around him, including a close friend of many years, an individual who turned to him for his claimed expertise in astrology, and representatives of a major company he falsely purported to intend to purchase.
LEWIS repeatedly and falsely claimed that he was a billionaire businessman in order to commit several different frauds, including by soliciting “investments” from his victims totaling millions of dollars over the course of years. As part of his fraudulent investment schemes, he defrauded and attempted to defraud friends, associates, and representatives of a major corporation. In particular, LEWIS stole more than $3 million from one victim, more than half a million dollars from another, and fraudulently attempted to acquire a corporate entity in bankruptcy proceedings for $290 million.
This case resulted in LEWIS’s third felony conviction for fraud and theft offenses.
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In addition to the prison term, LEWIS, 53, of Los Angeles, California, was sentenced to three years of supervised release and ordered to pay restitution in the amount of $3,788,143.58 and to forfeit the same amount of ill-gotten gains.
Mr. Williams praised the outstanding work of the Federal Bureau of Investigation and thanked the Beverly Hills Police Department for its exceptional investigative assistance.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorney Alex Rossmiller is in charge of the prosecution.
Queens Man Pleads Guilty to Co-Leading One of the Largest No-Fault Insurance Frauds in New York HistoryRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that ALEXANDER GULKAROV pled guilty today to conspiracy to commit bribery, conspiracy to commit healthcare fraud, and aggravated identity theft in connection with his orchestration of a $40 million fraud targeting no-fault automobile insurance companies. GULKAROV further admitted to obstructing law enforcement’s investigation by fabricating documents and intimidating witnesses.
U.S. Attorney Damian Williams said: “Alexander Gulkarov was one of the leaders of a multifaceted scheme to defraud automobile insurance companies; bribe hospital employees, 911 dispatchers, and others; launder hundreds of thousands of dollars; and obstruct law enforcement. This complex scheme resulted in over $40 million in losses, which Gulkarov used to fund his lavish lifestyle, taking luxury vacations and renovating his multimillion-dollar home. This Office has no tolerance for those who cheat the system to wrongfully enrich themselves, and we will continue to dismantle wide-ranging schemes such as this one.”
According to the Information to which GULKAROV pled guilty, the plea agreement, and statements made in court:
The Healthcare Fraud Scheme
New York and New Jersey no-fault insurance laws require a driver’s automobile insurance company to pay automobile insurance claims automatically for certain types of motor vehicle accidents, provided that the claim is legitimate and below a particular monetary threshold. Pursuant to these requirements, insurance companies will often pay medical service providers directly for the treatment they provide to automobile accident victims without the need to bill the victims themselves. This process resolves automobile claims without apportioning blame or fault for the accident, thereby avoiding protracted disputes and the costs associated with an extended investigation of the accident.
From 2014 through 2021, GULKAROV and others (collectively, the “Clinic Controllers”) agreed that they would unlawfully own, run, and profit from medical clinics in the New York area and that GULKAROV would also profit from pharmacies in the New York area that were unlawfully owned and controlled by other Clinic Controllers. GULKAROV knew that clinics and pharmacies are unable to bill insurance companies for No-Fault benefits if the medical facilities are controlled by non-physicians. GULKAROV nonetheless agreed with others to submit bills to insurance companies falsely representing that the clinics were owned and operated by licensed medical practitioners and for medical practitioners to lie under oath during Examinations under Oath about the ownership, control, and finances of the clinics. GULKAROV personally coached medical practitioners to lie under oath. GULKAROV and his fellow Clinic Controllers unlawfully obtained from insurance companies at least $40,000,000 as part of the scheme.
In connection with the scheme described above, GULKAROV personally approached medical practitioners, including physicians, and directed them to prescribe unnecessary medical treatments (including MRIs, EMG/NCV testing, spinal injections, and computerized radiologic mensuration analysis), unnecessary durable medical equipment (including cervical home traction devices and lumbar back support), and medically unnecessary medications (including prescription strength painkillers, topical creams, and topical gels). GULKAROV received kickbacks from MRI facilities, pain management doctors, and other specialized care providers, who performed these unnecessary medical treatments. GULKAROV further personally arranged for the unnecessary medications to be filled at pharmacies under the control of other Clinic Controllers. The medical practitioners provided necessary procedures and treatments to patients as well.
GULKAROV also overbilled insurance companies for treatments provided by medical practitioners. In connection with the scheme, GULKAROV owned and operated a billing company called “Billing for You.” Billing for You submitted bills to insurance companies overstating the amount of time that practitioners spent treating patients. Billing for You also used improper, unlisted billing codes to bill insurance companies in excess of what is permitted under No-Fault regulations.
The Bribery Scheme
GULKAROV and his fellow Clinic Controllers further agreed to pay bribes in connection with the above-described scheme. From at least 2014 through November 2019, GULKAROV agreed with others to pay bribes to hospital employees, 911 dispatchers, and other individuals for the confidential names and numbers of motor vehicle accident victims. As part of the scheme, GULKAROV and others provided approximately $150,000 for the creation of a call center, operated by Anthony Rose, a/k/a “Todd Chambers,” that called victims and lied to them to induce victims to receive medical treatment at, among other places, clinics controlled by GULKAROV and his associates. GULKAROV further personally paid Anthony Rose hundreds of thousands of dollars in bribe payments in cash.
As part of the scheme, GULKAROV arranged for a New York City police officer to provide confidential information from New York City Police Department (“NYPD”) servers. In particular, this officer sent GULKAROV over 400 photos of confidential NYPD motor vehicle accident reports using the encrypted messaging application, WhatsApp. GULKAROV then re-transmitted the reports to Rose and others so that they could call patients, lie to them, and direct them to clinics controlled by GULKAROV and others.
Money Laundering and Obstruction Conduct
GULKAROV laundered the proceeds of the bribery and healthcare fraud from the bank accounts of the medical clinics and pharmacies to personal accounts using a variety of methods. Among other things, GULKAROV personally told medical practitioners to sign blank checks from the clinics’ bank accounts, which GULKAROV used to pay personal expenses such as luxury vacations around the world, expensive meals, jewelry, and parties. GULKAROV also used the blank checks to pay for hundreds of thousands of dollars of construction-related expenses for this three-story, multimillion-dollar home in Queens, New York.
GULKAROV arranged for checks from the clinics’ bank accounts to be cashed at over a dozen shell companies under his control or the control of co-conspirators, including, for instance, “Sign N Drive Auto GRP,” “Transport on Wheels,” and “Sancus Consulting & Trading Inc.” Over two dozen of these shell companies were opened by foreign nationals, who entered the country on tourism visas, opened bank accounts for the shell companies, provided the debit cards to GULKAROV’s coconspirators, and then left the country.
GULKAROV additionally agreed to use Wisnicki & Associates and Wisnicki Neuhauser (collectively, the “Wisnicki Firm”) to launder proceeds from the No-Fault scheme. GULKAROV and his fellow Clinic Controllers wrote over $150,000 in checks to the Wisnicki Firm from the No-Fault clinics’ bank accounts. The Wisnicki Firm did not provide any legal services to the No-Fault clinics. Instead, the Wisnicki Firm used this money to purchase real estate for one of GULKAROV’s coconspirators. GULKAROV and his coconspirators deducted the payments to the Wisnicki Firm on the clinics’ tax returns as legal expenses.
Lastly, GULKAROV engaged in a multi-month obstruction scheme beginning in February 2021. In February and March 2021, the Government served grand jury subpoenas on the medical practitioners involved in the No-Fault scheme. GULKAROV immediately contacted at least half-a-dozen of his coconspirators and ordered them not to speak with law enforcement. In return, GULKAROV gave his coconspirators money to pay for attorneys. GULKAROV also obtained the phones of multiple practitioners and deleted his communications with them from their devices.
Thereafter, on or about April 1, 2021, the Government served a grand jury subpoena on the Wisnicki Firm for documentation surrounding the $150,000 in payments made from the clinics to the Wisnicki Firm. GULKAROV agreed with others that the Wisnicki Firm would fabricate retainer agreements for transmission to the grand jury. The fabricated retainer agreements, which were backdated to 2016 and 2017, falsely represented that the No-Fault clinics had retained the Wisnicki Firm for legal services.
During the following months, in or about April and May 2021, GULKAROV approached multiple medical practitioners and ordered them to sign the backdated, fabricated retainer agreements. The medical practitioners complied. GULKAROV also provided these medical practitioners with checks, written from the Wisnicki Firm, returning the purported “retainer fees” paid to the Wisnicki Firm. GULKAROV ordered the medical practitioners to deposit the checks, withdraw the money in small cash increments, and return the cash to GULKAROV. At least one medical practitioner complied.
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ALEXANDER GULKAROV, 37, of Queens, New York, pled guilty to one count of conspiracy to commit bribery, which carries a maximum sentence of five years in prison; one count of conspiracy to commit healthcare fraud, which carries a maximum sentence of five years in prison; and one count of aggravated identity theft, which carries a mandatory sentence of two years in prison to run consecutively to any other prison term imposed. As part of his plea agreement with the Government, GULKAROV agreed to pay forfeiture of $40,000,000 and restitution of $40,000,000.
The maximum potential sentences 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 Federal Bureau of Investigation.
This case is being handled by the Office’s Complex Frauds and Cybercrime Unit and the White Plains Division. Assistant U.S. Attorneys Mathew Andrews, Timothy Capozzi, and Ryan W. Allison are in charge of the prosecution.
Statement of U.S. Attorney Damian Williams on the Conviction of Samuel Bankman-FriedRead the Press Release
“Sam Bankman-Fried perpetrated one of the biggest financial frauds in American history – a multibillion-dollar scheme designed to make him the King of Crypto – but while the cryptocurrency industry might be new and the players like Sam Bankman-Fried might be new, this kind of corruption is as old as time. This case has always been about lying, cheating, and stealing, and we have no patience for it.
When I became U.S. Attorney, I promised we would be relentless in rooting out corruption in our financial markets. This is what relentless looks like. This case moved at lightning speed – that was not a coincidence, that was a choice. This case is also a warning to every fraudster who thinks they’re untouchable, that their crimes are too complex for us to catch, that they are too powerful to prosecute, or that they are clever enough to talk their way out of it if caught. Those folks should think again, and cut it out. And if they don’t, I promise we’ll have enough handcuffs for all of them.
This verdict would not have been possible without the amazing work by the career prosecutors from my Office and the FBI agents who have given their all for this case. We have pushed them hard, and they have delivered every step of the way. They are the best of the best, and I am grateful for them.
This case has received a tremendous amount of attention, and I understand why that is, but the women and men of the Southern District of New York consistently deliver outstanding public service on behalf of the American people – without fear or favor and often without any public recognition. They do it because they believe in the rule of law, because they love this country, and because they are patriots. I am proud to serve with them.”
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Bankman-Fried, 31, of Stanford, California, was convicted of two counts of wire fraud conspiracy, two counts of wire fraud, and one count of conspiracy to commit money laundering, each of which carries a maximum sentence of 20 years in prison. He was also convicted of conspiracy to commit commodities fraud and conspiracy to commit securities fraud, each of which carries a maximum sentence of five years in prison.
The statutory maximum sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.
Yorktown Man Charged with Receipt, Distribution, and Possession of Child PornographyRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, and Ivan J. Arvelo, the Special Agent in Charge of the New York Field Office of Homeland Security Investigations (“HSI”), announced today the arrest of GIUSEPPI MICCIARI. MICCIARI is charged with distributing, receiving, and possessing child pornography. MICCIARI was presented today before U.S. Magistrate Judge Andrew E. Krause in White Plains federal court.
U.S. Attorney Damian Williams said: “Giuseppi Micciari’s alleged conduct is vile and disturbing, especially given that, as a teacher, Micciari was entrusted with the care of children. Investigating and prosecuting those who sexually exploit children remains of paramount importance to this Office, and we will do everything in our power to protect the children of our community.”
HSI Special Agent in Charge Ivan J. Arvelo said: “Giuseppi Micciari was entrusted with our most vulnerable segment of society – our children. His alleged depraved acts betrayed that trust. Not only is Micciari accused of collecting and sharing of these heinous acts, but also attempting to hack into a student’s social media. HSI New York and our law enforcement partners will continue to work tirelessly to ensure predators seeking to exploit children face just consequences for their actions.”
According to the allegations in the Complaint filed on October 31, 2023, in White Plains federal court and unsealed today:[1]
A review of MICCIARI’s phone revealed the existence of numerous videos and images containing child sexual abuse material.
MICCIARI’s phone revealed the use of Telegram, an internet and cloud-based instant messaging service that permits its users to exchange messages, share media and files, and hold private and group voice or video calls. Among the communications contained in the Telegram app were communications revealing a request by MICCIARI’s phone for an “account hack” of an individual’s Snapchat account, as well as communications in which another individual asked, “what age teen content you have,” and MICCIARI’s phone replied, “there one big Mega 10-17.”
A U.S. passport application submitted in connection with the issuance of a U.S. passport for GIUSEPPI MICCIARI identified MICCIARI’s occupation as “teacher.”
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MICCIARI, 27, of Yorktown, New York, is charged with one count of receipt and distribution of child pornography and one count of possession of child pornography. Both counts carry a maximum sentence of 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 efforts of HSI, the U.S. Secret Service, the New York State Police, the New York City Police Department, the Westchester County District Attorney’s Office, the Rockland County District Attorney’s Office, and the Yorktown Police Department. He added that the investigation is ongoing.
The prosecution is being handled by the Office’s White Plains Division. Assistant U.S. Attorney Marcia S. Cohen is in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Senior Public Relations Firm Executive Pleads Guilty to Defrauding His Employers of Millions of DollarsRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that ANDREW GARSON, a public relations executive, pled guilty today in Manhattan federal court in connection with a scheme to defraud his former employers of millions of dollars. Pursuant to his plea agreement with the Government, GARSON agreed to pay $3,754,068 in restitution to the victims of his crime. GARSON pled guilty before U.S. District Judge Laura Taylor Swain and is scheduled to be sentenced on February 28, 2024.
U.S. Attorney Damian Williams said: “Andrew Garson betrayed his employers time and time again, causing millions of dollars in losses, and when he no longer had an employer to defraud, he applied for and received thousands of dollars in unemployment benefits to which he was not entitled. Garson’s fraud scheme was multifaceted and manipulative, and he has now admitted to greedily exploiting his employers’ trust to line his own pockets.”
According to the allegations in the Indictment and other filings and statements made in court:
Between approximately 2014 and 2018, GARSON was employed as an executive at two different marketing public relations agencies located in New York, New York, the first between approximately 2014 and January 2018 (“PR Firm-1”), and the second between approximately January 2018 and November 2018 (“PR Firm-2”). In his respective roles at those two firms, GARSON was responsible for working directly with clients, coordinating various marketing and public relations campaigns, and managing vendor relationships in connection with such campaigns. In or about July 2018, GARSON was named a “40 Under 40” public relations executive by PR Week Magazine. However, GARSON engaged in a scheme to lie to his two employers for years, causing his employers millions of dollars in losses.
One such series of misrepresentations by GARSON resulted in the unauthorized payment by PR Firm-2 of expenses owed to vendors in connection with marketing campaigns led by GARSON while employed at PR Firm‑1. Over the course of GARSON’s first several months of employment at PR Firm-2, GARSON lied to certain vendors, stating that PR Firm-2 had agreed to cover expenses still owed to those vendors related to GARSON’s prior projects at PR Firm-1. In fact, PR Firm-2 did not authorize the payment of those expenses. In order to cause PR Firm-2 to effect payment of these expenses, GARSON created fraudulent invoices falsely claiming that the vendors were due payment for work performed on PR Firm-2 projects. In this fashion, GARSON caused PR Firm-2 to pay substantial expenses to vendors with which GARSON had worked on projects while employed at PR Firm-1.
In addition, while employed at PR Firm-1, GARSON used his corporate credit card for unauthorized personal expenses. For example, in or about August 2017, GARSON purchased a luxury watch using his PR Firm-1 corporate credit card for approximately $14,000, claiming that the expense related to event production for a client marketing event. GARSON later sold the watch to a New Jersey jewelry store in or about December 2018 for approximately $4,000. GARSON deposited the money that he earned from the sale of the watch into his personal bank account.
GARSON similarly defrauded PR Firm-2 with respect to the unauthorized use of his corporate credit card. For example, GARSON submitted expense reports to PR Firm-2 in which he claimed the same expense for reimbursement on more than one occasion, causing PR Firm-2 to reimburse GARSON twice for the same expenditure.
After uncovering certain aspects of the fraud scheme perpetrated by GARSON, PR Firm-2 terminated GARSON in or about November 2018. While applying for unemployment insurance program benefits from the New York State Department of Labor following his termination, GARSON lied regarding the circumstances surrounding his separation from PR Firm-2. As a result of his misrepresentations, between in or about December 2018 and in or about March 2019, GARSON received a total of over $5,000 in unemployment insurance benefits to which he was not entitled.
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GARSON, 41, of Rockville Centre, New York, pled guilty to one count of wire 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 the judge.
Mr. Williams praised the outstanding investigative work of U.S. Postal Inspection Service.
The prosecution of this case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorney Timothy V. Capozzi is in charge of the prosecution.
Former Investment Banker Sentenced to 36 Months for Insider Trading and Obstruction of JusticeRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced today that BRIJESH GOEL, a former investment banker at Goldman Sachs, was sentenced to 36 months in prison for insider trading and obstruction of justice. GOEL was previously convicted after a seven-day trial before U.S. District Judge P. Kevin Castel.
U.S. Attorney Damian Williams said: “Today’s sentence vindicates the integrity of our financial markets and the investors who play by the rules and serves as a reminder that crime doesn’t pay. If you try to cheat the system by engaging in insider trading, you will be punished, and if you try to cover your tracks while under investigation, you only make matters worse.”
According to the Indictment, statements made in public court proceedings and filings, and the evidence at trial:
BRIJESH GOEL was an investment banker at Goldman Sachs in New York, New York. In that position, GOEL received confidential internal emails directed to Goldman Sachs’ Firmwide Capital Committee and Credit Markets Capital Committee, which contained detailed information and analysis about potential merger-and-acquisition transactions that Goldman Sachs was considering financing. In violation of the duties that he owed to Goldman Sachs, GOEL misappropriated that confidential information and tipped a friend, Akshay Niranjan, who worked at another investment bank in New York, New York, with the names of potential target companies from those internal emails during in-person meetings such as when the two met at the New York Health and Racquet Club. Niranjan then used that confidential information to trade call options, including short-dated, out-of-the-money call options, in brokerage accounts that were in the name of Niranjan’s brother. GOEL and Niranjan agreed to split the profits from their trading. Between approximately 2017 and 2018, GOEL tipped Niranjan on at least six deals in which Goldman Sachs was involved, yielding total illegal profits of approximately $280,000.
Between approximately May and June 2022, GOEL also obstructed investigations by a grand jury in the Southern District of New York and the U.S. Securities and Exchange Commission (“SEC”). Specifically, GOEL deleted and asked Niranjan to delete text messages regarding the insider trading scheme, including during an in-person meeting that Niranjan consensually recorded.
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In addition to the prison sentence, GOEL, 39, of New York, New York, was sentenced to three years’ supervised release and ordered to forfeit $85,000 and a restitution in an amount to be determined at a future date to Goldman Sachs. GOEL was also ordered to pay a $75,000 fine.
Mr. Williams praised the outstanding work of the Federal Bureau of Investigation. Mr. Williams further thanked the SEC and the Financial Industry Regulatory Authority for their assistance and cooperation.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U. S. Attorneys Samuel P. Rothschild and Andrew Thomas are in charge of the prosecution.
Pelham Manor Man Charged with Health Care Fraud and Kickback SchemeRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, and Naomi Gruchacz, the Special Agent in Charge of the New York Office of the U.S. Department of Health and Human Services, Office of Inspector General (“HHS-OIG”), announced the unsealing of a five-count Indictment charging MANISHKUMAR PATEL in connection with a health care fraud and kickback scheme involving the sale of fraudulent prescriptions. PATEL was arrested this morning in Pelham Manor, New York, and was presented this afternoon before U.S. Magistrate Judge Gary Stein. The case is assigned to U.S. District Judge Schofield.
U.S. Attorney Damian Williams said: “As alleged, Manishkumar Patel ran a scheme to get rich by generating fraudulent prescriptions used to bill Medicare for millions of dollars in unnecessary healthcare expenses. Today’s charges send a message: our Office and our law enforcement partners are dedicated to holding accountable anyone who tries to rip off critical healthcare programs like Medicare.”
HHS-OIG Special Agent in Charge Naomi Gruchacz said: “Certain violations of the Anti-Kickback Statute can result in the inducement of medically unnecessary durable medical equipment, medications, and laboratory tests, which can affect the availability of services for others and drive up the cost of health care for everyone. Individuals and entities that participate in the federal health care system are required to obey the laws meant to preserve the integrity of program funds and the provision of appropriate, quality services to patients.”
As alleged in the Indictment:[1]
Between 2019 and 2022, PATEL and a coconspirator (“CC-1”) fraudulently sold prescriptions and doctors’ orders for durable medical equipment, pharmaceuticals, and laboratory tests (collectively, “scripts”) to durable medical equipment suppliers, pharmacies, and laboratories (collectively, the “Medicare Providers”).
PATEL obtained the scripts from call centers that called Medicare beneficiaries and asked them perfunctory questions designed to justify a script that would be reimbursed by Medicare. PATEL turned the information from those calls into scripts by, variously: (i) arranging cursory telemedicine appointments with the beneficiaries; (ii) a practice called “doctor chasing,” in which the information was sent to a doctor who signed the script without seeing the patient and who was frequently unaware of what they were signing; and (iii) obtaining forged scripts. PATEL then sold the scripts to Medicare Providers, which filled the orders and billed Medicare.
Because the scripts were fraudulently obtained, many beneficiaries rejected the items they were sent by the Medicare Providers, many doctors threatened to report PATEL for fraud, and Medicare frequently refused to pay for the scripts.
The Medicare Providers made payments to PATEL for the scripts in violation of the Anti-Kickback Statue. PATEL and the Medicare Providers entered into sham contracts for generic marketing services at flat rates in an attempt to conceal their illegal kickback scheme.
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PATEL, 44, of Pelham Manor, New York, is charged with (i) conspiracy to commit health care fraud and wire fraud, which carries a maximum sentence of 20 years in prison; (ii) health care fraud, which carries a maximum sentence of 20 years in prison; (iii) wire fraud, which carries a maximum sentence of 20 years in prison; (iv) conspiracy to violate the Anti-Kickback Statute, which carries a maximum sentence of five years in prison; and (v) violation of the Anti-Kickback Statute, which carries a maximum sentence of five years in prison.
The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.
Mr. Williams praised the outstanding work of HHS-OIG.
The case is being prosecuted by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorney Kevin Mead is in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth herein constitutes only allegations, and every fact described therein should be treated as an allegation.
Cryptocurrency Founder “Bruno Block” Sentenced to Four Years in PrisonRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that AMIR BRUNO ELMAANI, a/k/a “Bruno Block,” the founder of the cryptocurrency “Oyster Pearl,” was sentenced to four years in prison, the maximum sentence allowed by statute, for tax offenses ELMAANI committed in connection with the Pearl token. ELMAANI had previously pled guilty on April 5, 2023, before U.S. District Judge Colleen McMahon, who imposed today’s sentence. In connection with his guilty plea, ELMAANI admitted that he had secretly minted and sold for his own gain Pearl cryptocurrency tokens, which caused the price of Pearl tokens to plummet, and that he did not pay income tax on certain cryptocurrency profits. ELMAANI agreed that he caused a tax loss of over $5.5 million.
U.S. Attorney Damian Williams said: “Amir Elmaani violated the duty he owed to pay taxes on millions of dollars of cryptocurrency profits, and he also violated the trust of investors in the cryptocurrency he founded. Participants in the cryptocurrency markets must play by the rules, and this Office will be tireless in prosecuting those who do not.”
Based on the allegations in the Indictment, in the Superseding Information to which ELMAANI pled guilty, the plea agreement, and other statements made and documents filed in court:
In September and October 2017, ELMAANI began promoting online a new cryptocurrency known as Pearl tokens. Using a variation of his online pseudonym “Bruno Block,” ELMAANI stated that he planned to develop an online data-storage platform, known as Oyster Protocol, which would allow users to purchase online data storage with Pearl tokens. Instead of using his real name, ELMAANI operated almost exclusively online under the pseudonym “Bruno Block.” ELMAANI concealed his true identity from his prospective employees and business associates and never met them in person.
In the fall of 2017 and thereafter, ELMAANI sold Pearl tokens to the investing public through an “initial coin offering” and on cryptocurrency market platforms. ELMAANI announced that he intended to take a “founder’s share” of Pearl tokens for his own personal use. ELMAANI owned and controlled the subsequently established company Oyster Protocol Inc. through a shell company not associated with his true name.
In a statement issued under ELMAANI’s online pseudonym on June 7, 2018, ELMAANI stated that he was retaining millions of Pearl tokens as his “ownership stake” in Oyster Protocol, but that he had to move the tokens to a different cryptocurrency wallet “in order to avoid being double-taxed.” In truth, ELMAANI did not report or pay tax on any of his cryptocurrency proceeds. At various points, ELMAANI used friends and family as nominees to receive cryptocurrency proceeds and transfer them or U.S. currency to his own accounts.
ELMAANI dealt substantially in precious metals, kept gold bars in a safe on a yacht he owned, and used large amounts of cash to pay personal expenses.
In late October 2018, although the number of Pearl tokens was purportedly fixed, ELMAANI used his access to the blockchain technology used to create Pearl tokens to mint new tokens, which he took for his own personal use (the “Exit Scheme”). ELMAANI thereby increased the total volume of Pearl tokens. Shortly after creating the new tokens, ELMAANI converted the Pearl tokens he had obtained to other types of cryptocurrency on an online marketplace or exchange. As a result of ELMAANI’s conduct, trading in Pearl tokens halted on that exchange and the price of Pearl tokens held by investors dropped substantially. Pearl tokens were subsequently de-listed from the primary exchange where they were traded. Subsequent to the Exit Scheme, ELMAANI used his friends and family to receive cryptocurrency and to transfer funds to a bank account in his name.
While ELMAANI initially attempted to hide even “Bruno Block’s” involvement in the Exit Scheme, he later effectively admitted to the conduct online under his “Bruno Block” pseudonym. In a recorded call with the then-chief executive officer (“CEO”) of Oyster Protocol Inc. after the Exit Scheme, the CEO asked ELMAANI why he had to take the additional new Pearl tokens if he had already cashed out millions of dollars’ worth of Pearl tokens in the past. ELMAANI responded, in part, that “taxes are pretty nasty.” ELMAANI carried out the Exit Scheme only days before the exchange he had used to cash out his Pearl tokens was set to require “know your customer” personal identifying information from its users.
In connection with his plea, ELMAANI admitted in the plea agreement that:
In or about 2017, using the alias “Bruno Block,” I began an online project called the “Oyster Protocol.” In support of this project, an initial coin offering (“ICO”) was held in or about October 2017, in which a token named “Pearl” (“PRL”) was issued. I stated in public forums that after the ICO, the supply of PRL would not increase, and that the smart contract that created PRL would be “locked.” Contrary to these statements, on or about October 29, 2018, I used the smart contract to mint new PRL, without telling anyone, including others who worked on the Oyster Protocol project. I then sold these newly minted PRL on a digital trading platform. I was aware that the counterparties who were buying these newly-minted PRL likely were not aware of my reopening of the smart contract and did not know that I had just substantially increased the total supply of PRL. After Oyster management learned of my reopening of the smart contract and alerted the public, the price of PRL plummeted.
ELMAANI filed a false 2017 tax return stating that he had only approximately $15,000 of income from a “patent design” business, and he filed no return and reported no income to the IRS in 2018. Nevertheless, ELMAANI spent, in 2018, over $10 million for the purchase of multiple yachts, $1.6 million at a carbon-fiber composite company, hundreds of thousands of dollars at a home improvement store, and over $700,000 for the purchase of two homes, one of which was titled in the name of a shell company and the other in the name of two of his associates. The tax loss to the United States from ELMAANI’s conduct was approximately $5,523,794.
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In addition to the prison term, ELMAANI, 31, of Martinsburg, West Virginia, was sentenced to one year of supervised release and was ordered to pay restitution in the amount of $5,523,794.
Mr. Williams praised the investigative work of the Internal Revenue Service and the Federal Bureau of Investigation and 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 Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Margaret Graham and Adam Hobson are in charge of the prosecution.
Two Russian Nationals Charged for Conspiring to Hack the Taxi Dispatch System at JFK AirportRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, and John Gay, the Inspector General of the Port Authority of New York and New Jersey (the “Port Authority”), announced the unsealing of an Indictment charging ALEKSANDR DEREBENETC, a/k/a “Sasha Novgorod,” and KIRILL SHIPULIN, a/k/a “Kirill Russia,” with two counts of conspiracy to commit computer intrusions. The Indictment charges that DEREBENETC and SHIPULIN hacked the electronic taxi dispatch system (the “Dispatch System”) at John F. Kennedy International Airport (“JFK”). Taxi drivers are required to wait in a holding lot at JFK before they are dispatched to pick up a fare. A computer system ensures that taxis are dispatched in the order in which they arrived. DEREBENETC and SHIPULIN conspired with DANIEL ABAYEV and PETER LEYMAN to hack the Dispatch System and move certain taxis to the front of the line in exchange for payment. ABAYEV pled guilty today to one count of conspiracy to commit computer intrusions, and LEYMAN pled guilty to one count of conspiracy to commit computer intrusions on October 4, 2023.
U.S. Attorney Damian Williams said: “As alleged in the indictment, these four defendants conspired to hack into the taxi dispatch system at JFK airport. Cyber hacking can pose grave threats to infrastructure systems that we rely on every day, and our Office is dedicated to pursuing criminal hackers, whether they be in Russia or here in New York.”
Port Authority Inspector General John Gay said: “The significant charges in this alleged hacking conspiracy show that the Port Authority takes seriously our obligation to safe and equitable operations across our facilities. As alleged, this brazen scheme corrupted a system that hard-working taxi drivers rely on to earn a living, all so the defendants could make some extra cash. We are grateful for our partnership with the U.S. Attorney’s Office for the Southern District of New York.”
As alleged in the Indictment:[1]
From at least September 2019 through September 2021, DEREBENETC and SHIPULIN, who are Russian nationals residing in Russia, and ABAYEV and LEYMAN, who are U.S. citizens residing in Queens, New York, engaged in a scheme (the “Hacking Scheme”) to hack the Dispatch System at JFK.
At all relevant times, taxi drivers who sought to pick up a fare at JFK were required to wait in a holding lot at JFK before being dispatched to a specific terminal by the Dispatch System. Taxi drivers were frequently required to wait several hours in the lot before being dispatched to a terminal and were dispatched in approximately the order in which they arrived at the holding lot.
Beginning in 2019, DEREBENETC, SHIPULIN, ABAYEV, and LEYMAN explored and attempted various mechanisms to access the Dispatch System, including bribing someone to insert a flash drive containing malware into computers connected to the Dispatch System, obtaining unauthorized access to the Dispatch System via a Wi-Fi connection, and stealing computer tablets connected to the Dispatch System. The members of the Hacking Scheme also sent messages to each other in which they explicitly discussed their intention to hack the Dispatch System. For example, on or about November 10, 2019, ABAYEV messaged the following to DEREBENETC in Russian: “I know that the Pentagon is being hacked[.]. So, can’t we hack the taxi industry[?]”
At various times between November 2019 and November 2020, DEREBENETC, SHIPULIN, ABAYEV, and LEYMAN successfully hacked the Dispatch System. They used their unauthorized access to alter the Dispatch System and move specific taxis to the front of the line, thereby allowing drivers of those taxis to skip other taxi drivers waiting in the line. ABAYEV and LEYMAN charged taxi drivers $10 each time they were advanced to the front of the line and transferred part of their profits to SHIPULIN and DEREBENETC.
ABAYEV and LEYMAN’s scheme resulted in large numbers of taxi drivers skipping the taxi line. Over the course of the scheme, they enabled as many as 1,000 fraudulently expedited taxi trips a day.
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DEREBENETC, 30, of Nizhniy Novgorod, Russia, and SHIPULIN, 30, of Moscow, Russia, are each charged with two counts of conspiracy to commit computer intrusion. The charges carry a maximum sentence of 10 years in prison.
ABAYEV, 47, and LEYMAN, 49, both of Queens, New York, each pled guilty to one count of conspiracy to commit computer intrusion, which carries a maximum sentence of five years in prison.
The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by a judge. LEYMAN is scheduled to be sentenced by Judge Crotty on January 11, 2024, at 2:30 p.m., and ABAYEV is scheduled to be sentenced by Judge Crotty on February 12, 2024, at 3:00 p.m. DEREBENETC and SHIPULIN remain at large.
Mr. Williams praised the outstanding work of the Port Authority Office of the Inspector General. Mr. Williams also thanked Homeland Security Investigations for their assistance in the investigation.
The case is being prosecuted by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Kevin Mead and Steven J. Kochevar 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 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.
Long Island Man Charged in Bronx ShootingRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, James Smith, the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), Edward A. Caban, the Commissioner of the New York City Police Department (“NYPD”), announced today the unsealing of a Complaint charging TERRENCE ALLEN with illegally possessing ammunition in connection with a shooting by ALLEN in the courtyard of the Melrose housing complex in the Bronx on the evening of September 21, 2023. ALLEN was arrested today and will be presented this afternoon before U.S. Magistrate Judge Katharine H. Parker.
U.S. Attorney Damian Williams said: “As alleged, Terrence Allen brazenly fired 13 shots from a handgun as he casually strolled down a walkway in the courtyard of a residential building in the Bronx. New Yorkers deserve to be safe from gun violence. Thanks to our partners at the NYPD and the FBI, the defendant has now been apprehended.”
FBI Assistant Director in Charge James Smith said: “As we allege, in the shadow of a housing complex’s playground, Allen senselessly fired a gun, threatening the community’s right to live in safety. Along with our law enforcement partners, the FBI will hold anyone who endangers innocent lives accountable in the criminal justice system.”
NYPD Commissioner Edward A Caban said: “Today’s arrest is the result of a thorough, intelligence-led investigation by the NYPD and our law enforcement partners that is just one layer of our continuing work to eradicate gun violence in New York City. We are relentless in these efforts because the lives and quality of life of all New Yorkers depend on it.”
According to the allegations in the Complaint:[1]
On or about September 21, 2023, at approximately 8:28 p.m., TERRENCE ALLEN walked through the courtyard of the Melrose housing complex. As he walked, ALLEN discharged a firearm multiple times by shooting to his right. This still image from surveillance camera footage shows ALLEN firing one of those shots, as well as an individual seated on a park bench just a few yards to ALLEN’s left.
Upon canvassing the scene of the shooting, NYPD officers recovered 13 9mm shell casings.
ALLEN was not permitted to possess ammunition because of prior felony convictions.
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TERRENCE ALLEN, 41, of Freeport, New York, is charged with one count of possession of ammunition after a felony conviction, which carries a maximum sentence of 15 years in prison.
The statutory maximum penalty 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 investigative work of the FBI and NYPD. Mr. Williams also thanked the Bronx County District Attorney’s Office for its assistance in this matter.
This case is being handled by the Office’s General Crimes Unit. Assistant U.S. Attorney Joseph H. Rosenberg is in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth in this release constitute only allegations, and every fact described should be treated as an allegation.