Southern District of New York

Damian Williams, the United States Attorney for the Southern District of New York, announced that ANTHONY ELLISON and STARLIN NUNEZ, two former inmates of the Metropolitan Correctional Center (“MCC”), a federal jail, were found guilty today in Manhattan federal court for perpetrating wide-ranging bribery and prison contraband conspiracies with other inmates and MCC employees at the jail.  Six additional former MCC inmates and three former MCC employees previously pled guilty in this case.  NUNEZ will be sentenced by U.S. District Judge Andrew L. Carter, Jr., on June 6, 2024, and ELLISON will be sentenced by Judge Carter on July 9, 2024.

U.S. Attorney Damian Williams said: “Our federal detention centers are entrusted to provide care, custody, and order over inmates.  Anthony Ellison, Starlin Nunez, and their co-conspirators undermined the MCC’s mission through wide-ranging schemes of bribery and distribution of dangerous contraband, including drugs and cellphones.  Today’s unanimous verdict convicting Ellison and Nunez, and the convictions of their co-conspirators through guilty pleas, demonstrates that correctional officers and inmates who corrupt our detention centers will be held accountable.”

According to the Indictment, public court filings and proceedings, and the evidence presented at trial:

NUNEZ, a/k/a “Chino,” and ELLISON, a/k/a/ “Harv,” were both inmates at the MCC and perpetrated with other inmates and MCC guards an extensive bribery and contraband distribution scheme within the jail between approximately 2018 and 2021.  During the course of the conspiracy, between approximately 2019 and 2020, at least 10 MCC inmates, including NUNEZ and ELLISON, paid nearly $80,000 in bribes to Perry Joyner, a corrupt MCC correctional officer.  The inmates paid the bribes through friends and relatives outside the jail, who used money transfer applications such as CashApp to transfer money to associates of Joyner.  The associates then provided the bribes to Joyner himself.  In exchange for those bribes, Joyner smuggled large amounts of contraband into the MCC.  That contraband included drugs (such as oxycodone, alprazolam, Suboxone, marijuana, and synthetic cannabinoids, commonly known as “K2”), dozens of cellphones, and cartons of cigarettes, among other contraband.  MCC inmates, including NUNEZ and ELLISON, then sold much of that contraband to other inmates at a profit as part of a widespread illicit market within the MCC.  For example, ELLISON charged other inmates as much as $100 for a single cigarette and as much as $5,000 for a used iPhone.   

In approximately early 2020, Joyner left the MCC, and the jail initiated a series of lockdowns, first to search for contraband and then in response to the COVID-19 pandemic.  As a result of those lockdowns and Joyner’s departure, the contraband market in the MCC dried up until ELLISON found a new source of contraband.  In particular, between approximately 2020 and 2021, ELLISON conspired and had a sexual relationship with another corrupt MCC employee, Sharon Griffith-McKnight, who provided contraband to ELLISON, most of which he then re-sold to other inmates. 

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ELLISON, 36, from Brooklyn, New York, was convicted of one count of conspiring to commit honest services wire fraud, which carries a maximum sentence of 20 years in prison, and one count of conspiring to possess and provide prison contraband, including marijuana and other controlled substances, which carries a maximum sentence of five years in prison.

NUNEZ, 47, originally from the Dominican Republic, was convicted of one count of conspiring to commit honest services wire fraud, which carries a maximum sentence of 20 years in prison, and one count of conspiring to possess and provide prison contraband, including cellphones, which carries a maximum sentence of one year in prison. 

The statutory maximum penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants would be determined by a judge. 

Mr. Williams praised the outstanding investigative work of the Federal Bureau of Investigation, the Department of Justice’s Office of the Inspector General, the Special Agents from the U.S. Attorney’s Office for the Southern District of New York, and the U.S. Customs and Border Protection in New York.

The prosecution of this case is being handled by the Office’s Public Corruption Unit.  Assistant U.S. Attorneys Aline R. Flodr, Jessica Greenwood, Jonathan E. Rebold, and Daniel H. Wolf are in charge of the prosecution, with the assistance of Paralegal Specialists Rachel Wechsler, Christopher de Grandpre, Andrea Gieseman, and Connor Hamill. 

Damian Williams, the United States Attorney for the Southern District of New York, announced today that SRINIVASA KAKKERA and ABBAS SAEEDI were sentenced by U.S. District Judge Gregory H. Woods to 18 months and five months, respectively, for their participation in a scheme to commit insider trading based on material, non-public information (“MNPI”) that a third co-defendant, Amit Bhardwaj, misappropriated from Bhardwaj’s employer, Lumentum Holdings Inc. (“Lumentum”).  Judge Woods previously sentenced Bhardwaj to 24 months in prison and a fine of $975,000.

U.S. Attorney Damian Williams said: “Srinivasa Kakkera and Abbas Saeedi traded on valuable material, non-public information about Lumentum’s planned acquisitions, knowing that their friend had stolen this information from his employer, Lumentum.  Kakkera and Saeedi used their informational advantage to make millions in combined illegal gains in the stock market.  But insider trading is not easy money: if you try to illegally profit from material, non-public information, there’s a price to be paid.”

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

In approximately December 2020, Bhardwaj learned that Lumentum was considering acquiring Coherent, Inc (“Coherent”).  Based on this information, Bhardwaj himself purchased Coherent stock and call options, and Bhardwaj tipped three associates, including SAEEDI, and these individuals all traded in Coherent securities as a result. 

In or about October 2021, Bhardwaj learned that Lumentum was engaged in confidential discussions with Neophotonics Corporation (“Neophotonics”) about a potential acquisition.  Bhardwaj provided this information to KAKKERA, SAEEDI, and Ramesh Chitor, and these individuals all traded in Neophotonics securities.  KAKKERA also caused other friends and family to purchase Neophotonics securities.  When Neophotonics’ stock price increased substantially following the announcement of the Lumentum acquisition in November 2021, KAKKERA, SAEEDI, and Chitor closed their positions in Neophotonics securities and made collectively approximately $4.3 million in realized and unrealized profits.  In particular, KAKKERA made $2,453,687.99 and SAEEDI made $691,104.73.

After they were interviewed by the Federal Bureau of Investigation (“FBI”) and served with federal grand jury subpoenas on approximately March 29, 2022, Bhardwaj, KAKEKRA, and SAEEDI took steps to obstruct the federal investigation of their conduct.  They met in person on multiple occasions and discussed, among other things, potential false stories that would conceal their insider trading scheme as well as creating false documents to buttress lies regarding payments that were, in reality, related to the insider trading scheme.

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In addition to the prison sentence, KAKKERA, 48, of Pleasanton, California, was ordered to forfeit $2,453,687.99.  SAEEDI, 48, of Fremont, California, was ordered to forfeit $691,104.73. 

Mr. Williams praised the outstanding work of the FBI.  He also acknowledged the assistance of the Securities and Exchange Commission, which separately initiated civil proceedings against KAKKERA and SAEEDI. 

This case is being handled by the Office’s Securities and Commodities Fraud Task Force.  Assistant U.S. Attorneys Adam Hobson and Noah Solowiejczyk are in charge of the prosecution.

Damian Williams, the United States Attorney for the Southern District of New York, announced that TYRIEK SKYFIELD pled guilty today to one count of illegally possessing ammunition after a felony conviction.  The charge of conviction arises from SKYFIELD’s firing two shots at an individual (“Victim-1”), one of which hit Victim-1, on a residential street in the Bronx on July 22, 2023.  SKYFIELD pled guilty before U.S. District Judge Lewis J. Liman and is scheduled to be sentenced on May 7, 2024.

U.S. Attorney Damian Williams said:  “On a summer night in the Bronx last July, Tyriek Skyfield fired two shots from a handgun at an individual from close range.  One shot struck the victim in the foot, injuring him.  Today’s plea underscores an important priority of my Office: We will not tolerate gun violence in the Southern District of New York.”

According to court filings and statements made in court proceedings:

On or about July 22, 2023, at approximately 9:56 p.m., TYRIEK SKYFIELD fired two shots with a handgun at Victim-1 near the intersection of Needham Avenue and East 223rd Street in the Bronx, New York.  Surveillance video from a building overlooking the scene showed SKYFIELD brandishing a firearm at Victim-1 seconds before shooting at him. 

Surveillance video then captured SKYFIELD fleeing down Needham Avenue and onto East 222nd Street.  During a canvass of the scene of the shooting on the following day, officers from the New York City Police Department recovered a 9mm Luger shell casing from one of the gunshots in the yard of a residential building near the shooting.

SKYFIELD was not permitted to possess ammunition because of prior felony convictions. 

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TYRIEK SKYFIELD, 31, of New Rochelle, New York, pled guilty to 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 New York State Police and the Special Agents and Task Force Officers of the U.S. Attorney’s Office for the Southern District of New York, and he thanked the New York City Police Department for its assistance.

This case is being handled by the Office’s General Crimes Unit.  Assistant U.S. Attorneys Adam Z. Margulies and Joseph H. Rosenberg are in charge of the prosecution.

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 ODOGWU BANYE MMOBUOSI, a/k/a “Dozy Mmobuosi,” with securities fraud, making false filings with the Securities and Exchange Commission (“SEC”), and conspiracy charges.  MMOBUOSI is still at large.

U.S. Attorney Damian Williams said: “Dozy Mmobuosi allegedly orchestrated a massive scheme to inflate Tingo Group’s financial statements and make it appear as though the cellular and agriculture companies he founded were profitable and cash rich companies when, in fact, they were not.  With this Indictment, Mmobuosi’s alleged deceitful scheme comes to an end.”

FBI Assistant Director in Charge James Smith said: “Mmobuosi’s alleged fraud is an unseemly display of greed and corruption of our financial markets.  Securities schemes like this can be devastating for victim investors.  That’s why the FBI is committed to bringing financial fraud to light and perpetrators like Mmobuosi to justice.”

According to the allegations contained in the Indictment unsealed in Manhattan federal court and court filings:[1]

From at least in or about 2019 through in or about 2023, ODOGWU BANYE MMOBUOSI orchestrated a scheme to enrich himself by falsely representing that Nigerian companies he founded, Tingo Mobile and Tingo Foods, were operational, profitable businesses generating hundreds of millions of dollars in revenue respectively.  MMOBUOSI then sold Tingo Mobile and Tingo Foods to companies listed in the United States, including Tingo Group (listed on Nasdaq as “TIO”) and Agri-Fintech Holdings (traded in the Over-the-Counter Markets under symbol “TMNA”).  As a result, MMOBUOSI caused Tingo Group and Agri-Fintech to issue financial statements that falsely portrayed Tingo Mobile and Tingo Foods to be cash-rich, revenue-generating companies when, in fact, they were not.  MMOBUOSI then looted Tingo Group and Agri-Fintech by misappropriating cash from those companies and engaged in well-timed sales of their shares at inflated prices, generating millions of dollars of profits from his scheme.

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MMOBUOSI, 45, of Nigeria, has been charged with one count of conspiracy, which carries a maximum sentence of five years in prison, one count of securities fraud under Title 15, which carries a maximum sentence of 20 years in prison, and one count of making false filings with the SEC, 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 purpose only, as any sentencing of the defendant will be determined by a judge.

Mr. Williams praised the outstanding investigative work of the FBI.  He also expressed appreciation for the SEC, which separately initiated civil proceedings against the defendant.

This prosecution is being handled by the Office’s Securities and Commodities Fraud Task Force.  Assistant U.S. Attorneys Peter Davis and Kiersten A. Fletcher are in charge of the prosecution.

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

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

Damian Williams, the United States Attorney for the Southern District of New York, Matthew G. Olsen, the Assistant Attorney General for National Security, 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 today the unsealing of a Complaint charging KARREM NASR, a/k/a “Ghareeb Al-Muhajir,” with attempting to provide material support to al Shabaab, a designated foreign terrorist organization.  NASR, a U.S. citizen, was taken into custody in Nairobi, Kenya, on December 14, 2023, and was transported to the United States yesterday, December 28, 2023.  NASR will be presented before U.S. Magistrate Judge Barbara Moses in Manhattan federal court later today.

U.S. Attorney Damian Williams said: “As alleged, Karrem Nasr, motivated by the heinous terrorist attack perpetrated by Hamas on October 7, devoted himself to waging violent jihad against America and its allies.  Nasr, a citizen of this country, traveled from Egypt to Kenya bent on joining and training with al Shabaab so that he could execute his jihadist mission of death and destruction.  Nasr was prepared to kill and be killed to support the jihadist cause, and in his own words, he described America as ‘evil’ and the ‘head of the snake.’  Thanks to the extraordinary efforts of the career prosecutors in my Office and our law enforcement partners who led the investigation, Nasr’s plan to train with a terrorist organization and wage violent jihad has been disrupted.  Make no mistake: My Office is committed to investigating, disrupting, and prosecuting anyone who is inspired by Hamas’s October 7 attack and seeks to harm Americans, whether here or abroad.”

FBI Assistant Director in Charge James Smith said: “Karrem Nasr traveled across the globe in an alleged attempt to join the ranks of a foreign terrorist organization – an organization that has repeatedly expressed its desire to harm Americans around the world.  This investigation highlights the ongoing efforts of the FBI’s New York Joint Terrorism Task Force and our domestic and international law enforcement partners to protect the U.S. against any form of terrorism and ensuring the safety of our community.”

NYPD Commissioner Edward A. Caban said: “Instead of embracing all that the United States had to offer him, Mr. Nasr allegedly moved abroad and committed himself to supporting a foreign terrorist organization. The provision of support to such a group – particularly by an American citizen – is a heinous threat to our entire country and way of life. In the face of this, NYPD investigators and our law enforcement partners on the FBI-led New York Joint Terrorism Task Force will remain relentless in our efforts to identify and investigate anyone who so clearly considers our nation their sworn enemy.”

As alleged in the Complaint:[1]

NASR is a 23-year-old U.S. citizen who moved from New Jersey to Egypt in or about  July 2023.  NASR is a supporter of al Shabaab, a designated foreign terrorist organization that has attacked Americans and American allies.  Since at least in or about November 2023, NASR has repeatedly expressed his desire and plans to join al Shabaab and wage jihad, including in communications with an FBI confidential source (the “CS”), who was posing as a facilitator for terrorist organizations.[2]

In communications exchanged with the CS and postings online, NASR stated that he had been thinking about engaging in jihad for a long time, and he was particularly motivated to become a jihadi by the October 7, 2023 Hamas terrorist attack in Israel.  For example, in communications with the CS, NASR stated that the number one enemy was “evil America,” which he called the “head of the snake.”  In recent public social media posts, NASR warned that “Jihad” was “coming soon to a US location near you,” posting airplane, bomb, and fire emojis:

In further communications with the CS, NASR expressed his intent to join al Shabaab to receive military training and engage in jihad, that he was prepared to kill and be killed, and that he specifically aspired to be a martyr for the jihadist cause.  Other examples of NASR’s online posts supportive of jihad and terrorist ideology are shown below:

NASR took specific steps to join and receive military training from al Shabaab, including making flight and lodging reservations for travel to Kenya, where he planned to meet members of al Shabaab for further travel to Somalia to join and train with the group.  NASR booked a flight for December 14, 2023, from Egypt to Kenya for purposes of ultimately joining and training with al Shabaab.  In addition, approximately thze day before his flight, NASR told the CS that he planned to delete data from his cellphone and computer to ensure that if he were detained, law enforcement would not be able to recover evidence of his jihadist activities from those devices.  On December 14, 2023, NASR flew from Egypt to Kenya, where he planned to transit into Somalia and join and train with al Shabaab.  Later that day, NASR was taken into custody by Kenyan authorities.

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NASR, 23, of Lawrenceville, New Jersey, is charged with attempting to provide material support to a designated foreign terrorist organization, which carries a maximum sentence of 20 years in prison.

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

Mr. Williams praised the outstanding efforts of the FBI’s New York Joint Terrorism Task Force, which principally consists of agents from the FBI and detectives from the NYPD.  Mr. Williams also thanked the FBI’s Legal Attaché Office in Nairobi, Kenya, the Counterterrorism Section of the Department of Justice’s National Security Division, the Department of Justice’s Office of International Affairs, and the Kenyan Directorate of Criminal Investigations, including the Anti-Terrorism Police Unit and the Joint Terrorism Task Force-Kenya, for their assistance.

This case is being handled by the Office’s National Security and International Narcotics Unit.  Assistant U.S. Attorneys Camille L. Fletcher and Kimberly J. Ravener are in charge of the prosecution, with assistance from Trial Attorneys Jennifer Burke and Lesley Woods of the Counterterrorism Section.

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

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

[2] Communications referenced herein are described in substance and in part.

Damian Williams, the United States Attorney for the Southern District of New York, announced today the guilty plea of DAVID CARMONA for his role in founding and promoting a large-scale cryptocurrency Ponzi scheme known as IcomTech.  CARMONA pled guilty today before U.S. District Judge Jennifer L. Rochon to one count of conspiracy to commit wire fraud.

U.S. Attorney Damian Williams said: “IcomTech was a large-scale cryptocurrency scam founded by David Carmona that defrauded numerous investors.  Carmona and his co-defendants founded IcomTech on lies, and siphoned money away from victims at every opportunity.  Today’s guilty plea should send a clear message to those who engage in Ponzi schemes — whether in the cryptocurrency markets or elsewhere — that this Office is committed to rooting out fraud in all its forms and holding those responsible to full account.”

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

CARMONA started IcomTech in 2018, and MARCO RUIZ OCHOA — who pled guilty in September 2023 — was represented to be IcomTech’s CEO until 2019, when a new CEO replaced him.  IcomTech was a purported cryptocurrency mining and trading company that promised to earn its victim-investors (“Victims”) profits in exchange for their purchase of purported cryptocurrency-related investment products.  CARMONA and the other promoters of IcomTech, including his co-defendants OCHOA, JUAN ARELLANO, MOSES VALDEZ, and DAVID BREND, falsely promised their respective Victims, among other things, that profits from the companies’ cryptocurrency trading and mining would result in guaranteed daily returns on Victims’ investments.  In reality, IcomTech did not engage in cryptocurrency trading or mining for its Investors, and CARMONA and Icomtech’s other promoters used Victim funds to pay other Victims, to further promote the schemes, and to enrich themselves.

Icomtech promoters, including CARMONA, traveled throughout the United States and internationally where they hosted lavish expos and small community presentations aimed at luring Victims to invest in the schemes, including in the Southern District of New York.  During larger-scale events, IcomTech promoters presented on purported investment products and the compensation plan, encouraged Victims to invest as a means of achieving financial freedom, and boasted about the amount of money they were earning.  IcomTech promoters often showed up at larger-scale events in expensive cars and wearing luxury clothing as a way of exhibiting their purportedly legitimate success from IcomTech.  The atmosphere of these events was festive and designed to generate excitement about the schemes.

Victims invested in IcomTech by purchasing investment products from promoters using cash, checks, wire transfers, and actual cryptocurrency.  Following a Victim’s investment, a Victim would be provided with access to an online portal where the Victim could monitor the purported returns.  While Victims saw “profits” accumulate on the online portal, most Victims were unable to withdraw any of these so-called profits and ultimately lost their entire investments.  By contrast, IcomTech’s promoters, including CARMONA, siphoned off, in some cases, hundreds of thousands of dollars in Victim funds, which they withdrew as cash, spent on IcomTech promotional expenses, and used for personal expenditures such as luxury goods and real estate.

CARMONA worked with his co-defendant, GUSTAVO RODRIGUEZ, to build IcomTech’s website and online portal, where Victims were provided with personal accounts.  CARMONA and RODRIGUEZ discussed how to structure IcomTech’s compensation plan and investment products.  For example, RODRIGUEZ advised CARMONA on where CARMONA should set the purported daily returns on Victims’ investment packages and on the size of the investment packages that CARMONA should offer for sale.

In or about September 2018, CARMONA and OCHOA entered into a contract on behalf of IcomTech to purchase cryptocurrency mining equipment from a legitimate supplier and then began touting that investment as a means of generating interest among Victims to invest.  However, IcomTech did not meet its payment obligations to the supplier and never received any hardware.  Indeed, in or about July and August 2018, CARMONA admitted that his negotiations with the supplier were just for appearances and that he was just “using them.”  Even though RODRIGUEZ warned CARMONA that this would only work for a limited time before the supplier found out, CARMONA and OCHOA continued to promote IcomTech’s purported investment with the supplier.

At least as early as August 2018, Victims who attempted to withdraw money from their online portal accounts had difficulty doing so, and when they complained to promoters, they were met with excuses, delays, and hidden fees, if they were able to make any withdrawals at all.  Despite these complaints, IcomTech promoters, including CARMONA, continued to promote IcomTech and accept Victims’ investments.  As complaints mounted, IcomTech began offering a proprietary crypto-token for sale as a means of injecting liquidity into IcomTech.  Promoters of the schemes claimed that these tokens, known as “Icoms,” would eventually be worth a significant amount of money when they were accepted by companies for payment for goods and services.  This was false.  In reality, “Icoms” were essentially worthless and resulted in further financial loss to Victims.  By in or about the end of 2019, IcomTech stopped making payments to Victims and IcomTech collapsed.

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CARMONA, 40, of Queens, New York, pled guilty to one count of conspiracy to commit wire fraud, which carries a maximum sentence of 20 years in prison.

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

Mr. Williams praised the outstanding investigative work of Special Agents from Homeland Security Investigations’ El Dorado Task Force.  Mr. Williams also thanked the Securities and Exchange Commission and the Commodity Futures Trading Commission for their assistance.

If you believe you are a victim of the IcomTech fraud, updated information regarding the case and victims’ rights, as well as contact information for the victim witness coordinator is available here.

The case is being handled by the Office’s Money Laundering and Transnational Criminal Enterprises Unit.  Assistant U.S. Attorneys Michael D. Maimin, Cecilia E. Vogel, T. Josiah Pertz, and Benjamin A. Gianforti are in charge of the prosecution. 

Damian Williams, the United States Attorney for the Southern District of New York, announced that ROBERT ALCANTARA was sentenced today by U.S. District Judge Vernon S. Broderick to 68 months in prison for trafficking firearms.  ALCANTARA previously pled guilty to conspiring to traffic firearms and conspiring to launder money.

U.S. Attorney Damian Williams said: “Robert Alcantara alone trafficked over 100 untraceable ghost guns to the Dominican Republic.  The proliferation of unlawful ghost guns is a threat to public safety, and our response is clear: we will not let up.”

According to the charging documents and other filings and statements made in court:

From approximately 2017 until January 2022, ALCANTARA operated a “ghost gun” factory out of his home in Rhode Island.  ALCANTARA purchased ghost gun kits at gun shows and other places and then machined the kits into working firearms.  Once he had completed the untraceable firearms, he exported and sold them to the Dominican Republic.  Most of those guns were handguns, but a number were rifles.  ALCANTARA and others then laundered the proceeds of his gun sales.

On November 20, 2021, ALCANTARA was stopped in his vehicle in possession of kits to build approximately 45 ghost guns. 

ALCANTARA was interviewed by law enforcement agents and stated that he was planning to turn the 45 kits into working firearms, and he had 50 additional similar ghost guns at his home.  A photograph of the 45 ghost gun kits is below:

Below are photographs of ALCANTARA’s home ghost gun factory:

Below are photos ALCANTARA sent of firearms he had available for sale in the Dominican Republic:

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In addition to the prison term, ROBERT ALCANTARA, 36, of Providence, Rhode Island was sentenced to three years of supervised release.

Mr. Williams praised the outstanding investigative work of the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Department of Commerce’s Office of Export Enforcement, New York Field Office.  Mr. Williams also thanked the New York City Police Department, the New York State Police Department, the Providence Police Department, and the U.S. Attorney’s Office for the District of Rhode Island for their assistance in the case.

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

Damian Williams, the United States Attorney for the Southern District of New York, Fernando McMillan, Special Agent in Charge of the New York Field Office of the U.S. Food and Drug Administration’s Office of Criminal Investigations (“FDA-OCI”), 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 MOSES RABINOWITZ, a/k/a “Mark Rabin,” and MENACHIM SAMBER with conspiracy to commit wire fraud and conspiracy to obtain pre-retail medical products by fraud or deception in connection with a scheme to obtain medical devices and over-the-counter (“OTC”) drugs not approved for sale in the U.S. at discounted prices under the false pretense that they would be sold outside the U.S.  RABINOWITZ and SAMBER were arrested today and will be presented before U.S. Magistrate Judge Victoria Reznick.

U.S. Attorney Damian Williams said: “As alleged, the defendants defrauded manufacturers producing medical devices and over-the-counter drugs of millions of dollars and sold foreign medical products not approved for sale in the U.S. to unwitting consumers.  These charges should serve as a warning to fraudsters who think they can benefit financially by undermining the safety of our country’s medical supply chain.”        

FDA-OCI Special Agent in Charge Fernando McMillan: “The FDA is fully committed to the vigorous criminal investigation and prosecution of individuals who threaten the health and safety of American consumers by causing misbranded drugs and medical devices to be distributed.  Our office will continue to pursue and bring to justice those who place profits above the public health.”

USPIS Inspector in Charge Daniel B. Brubaker: “One of the USPIS's top priorities is to protect consumers from individuals who seek to profit from selling FDA-regulated products not intended for sale in the U.S.  Postal Inspectors relentlessly pursue criminals who further their criminal enterprises through the U.S. Mail.  In this case, Postal Inspectors collaborated with agents from FDA-OCI to help safeguard both the U.S. health care industry and American public.  I applaud their efforts on this investigation.”

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

RABINOWITZ was the owner and president of medical supply distributor Trasco, LLC (“Trasco”) and the owner of Trasco affiliates GlobalMed International, Ltd. (“GlobalMed”) and Panamedica Trading, Inc. (“Panamedica”).  SAMBER was an employee of Trasco whose functions included purchasing and sales.

From at least in or about January 2014 up to and including on or about January 3, 2019, RABINOWITZ and SAMBER engaged in a conspiracy to obtain FDA-regulated medical devices and OTC drugs that were not intended for sale in the U.S. at deeply discounted prices from manufacturers (the Victim Companies”) by falsely and fraudulently representing that the products would be sold and distributed outside of the U.S. when, in fact, RABINOWITZ and SAMBER, from the outset, intended to and did sell and distribute those medical devices and OTC drugs at a substantial profit to wholesalers, distributors, and others in the U.S.

The manufacturers relied on RABINOWITZ, SAMBER, and other co-conspirators’ false and fraudulent representations and sold their products to RABINOWITZ, SAMBER, Trasco, GobalMed, and Panamedica at deeply discounted prices, resulting in losses of more than $5 million.        

RABINOWITZ, SAMBER, and other co-conspirators created and caused to be created false and fraudulent documentation, which they provided and caused to be provided to the Victim Companies to conceal their fraudulent scheme.  At times, RABINOWITZ, SAMBER, and other co-conspirators arranged for the fraudulently obtained products to be diverted directly to locations within the U.S. and for “dummy” shipments to be exported instead in order to generate documentation to provide to the Victim Companies as proof of export.

RABINOWITZ, SAMBER, and other Trasco employees acting at their direction often removed the foreign language packaging or labeling on the medical devices and OTC drugs so that the provenance of the foreign medical products would also be hidden from the domestic consumers and distributors to whom they were sold.

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RABINOWITZ, 42, of Clifton, New Jersey, and SAMBER, 29, of Hollywood, Florida, were both charged with one count of wire fraud conspiracy, which carries a maximum sentence of 20 years in prison, and one count of conspiracy to obtain pre-retail medical products by fraud or deception, which carries a maximum sentence of 15 years in prison.

The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.

Mr. Williams praised the outstanding investigative work of the FDA-OCI and the USPIS.

This case is being handled by the Office’s White Plains Division.  Assistant U.S. Attorney Jeffrey C. Coffman is in charge of the prosecution.

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

[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.

Damian Williams, the United States Attorney for the Southern District of New York, and Stuart M. Goldberg, Acting Deputy Assistant Attorney General of the Justice Department’s Tax Division, announced that ROLF SCHNELLMANN, a Swiss former executive, pled guilty today to conspiring to defraud the United States in connection with a scheme to help high-value U.S. taxpayer-clients conceal more than $60 million in income and assets held in undeclared, offshore bank accounts and to evade U.S. income taxes.  SCHNELLMANN pled guilty before U.S. District Judge Gregory H. Woods. 

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

SCHNELLMANN was the former head of Allied Finance Trust AG, a Zurich-based financial services company that was a subsidiary of the Allied Finance Group in Liechtenstein.  From in or about 2008 to in or about 2014, SCHNELLMANN and his co-conspirators defrauded the IRS by concealing income and assets of high-value U.S. taxpayer-clients with undeclared bank accounts at Privatbank IHAG Zurich AG (“IHAG”), a Swiss private bank.  In order to assist the U.S. taxpayer-clients, SCHNELLMANN and his co-conspirators devised and implemented a scheme dubbed the “Singapore Solution” to fraudulently conceal the bank accounts of the U.S. taxpayer-clients, their assets, and their income from U.S. authorities.  In furtherance of the fraudulent scheme, SCHNELLMANN and his co-conspirators conspired to transfer more than $60 million from undeclared IHAG bank accounts of the U.S. taxpayer-clients through a series of nominee bank accounts in Hong Kong and other locations before returning the funds to newly opened accounts at IHAG in the name of a Singapore-based asset-management firm that a co-conspirator helped establish.  The U.S. taxpayer-clients paid large fees to IHAG and others to help them conceal their funds and assets and evade taxes. 

SCHNELLMANN was arrested in August 2023 in Italy and extradited to the United States.

*                *                *

SCHNELLMANN, 61, of Switzerland, pled guilty to one count of conspiracy to defraud the United States, which carries a maximum sentence of five years in prison.  SCHNELLMANN is scheduled to be sentenced by Judge Woods on July 19, 2024, at 10:00 a.m.

The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as SCHNELLMANN’s sentence will be determined by the judge.

Mr. Williams praised the outstanding work of the Internal Revenue Service, Criminal Investigation.  Mr. Williams also thanked the Department of Justice’s Office of International Affairs, Interpol, Italian law enforcement authorities, the Prosecutor General’s Office of Trieste, and the Italian Ministry of Justice for their assistance in the extradition of the defendant.  Mr. Williams thanked the Department of Justice’s Tax Division for their partnership on this case. 

This prosecution is being handled by the Complex Frauds and Cybercrime Unit and the Department of Justice’s Tax Division.  Assistant U.S. Attorney Olga I. Zverovich and Senior Litigation Counsel Nanette Davis of the Tax Division are in charge of the prosecution.

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, 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 terrorism charges against SAMUEL SALMAN EL REDA, a/k/a “Samuel Salman El Reda El Reda,” a/k/a “Salman Raouf Salman,” a/k/a “Sulayman Rammal,” a/k/a “Salman Ramal,” a/k/a “Salman Raouf Salman,” a/k/a “Hajj,” a dual Colombian-Lebanese citizen and member of Hizballah’s Islamic Jihad Organization (“IJO”), in connection with EL REDA’s alleged role leading decades of terrorist activity on behalf of Hizballah and the IJO.  EL REDA is charged with, among other offenses, conspiring to provide and providing material support to Hizballah, a designated foreign terrorist organization.  The charges are contained in an Indictment unsealed today in Manhattan federal court.  EL REDA is based in Lebanon and remains at large. 

U.S. Attorney Damian Williams said: “As alleged, for decades, Samuel Salman El Reda has led terrorist operations on behalf of the Islamic Jihad Organization of Hizballah, including a 1994 bombing in Buenos Aires that massacred 85 innocent victims.  The career prosecutors of this Office have not forgotten the pain and suffering that El Reda has allegedly caused, and we thank the dedication of our law enforcement partners for pursuing this important case.  The Southern District of New York continues to be a leader in prosecuting violent terrorists and terrorist organizations, and we will not rest until those who create chaos and destruction are brought to justice.”

Assistant Attorney General Matthew G. Olsen said: “Nearly three decades ago, long-time Hizballah terrorist operative Samuel Salman El Reda allegedly helped plan and execute the heinous attack on a Buenos Aires Jewish community center that murdered 85 innocent people and injured countless others.  This indictment serves as a message to those who engage in acts of terror: that the Justice Department’s memory is long, and we will not relent in our efforts to bring them to justice.”

FBI Assistant Director in Charge James Smith said: “The evil and horror wrought by terrorism reaches all corners of the globe.  Samuel Salman El Reda was allegedly involved in carrying out terrorist activity on behalf of Hizballah throughout the world.  The New York Joint Terrorism Task Force and our law enforcement partners are unwavering in our determination to bring any individual who supports the evils of terrorism to justice.”

NYPD Commissioner Edward A. Caban said: “As alleged, El Reda was an on-the-ground coordinator of the fatal attack against South America’s largest Jewish center nearly 30 years ago.  In the decades after that attack, he allegedly continued to direct and support terrorism activities in the Western Hemisphere on behalf of Hizballah and has been involved in plots all across the world.  We want this alleged killer brought to justice.”

According to the allegations contained in the Indictment charging the defendant and other public court documents:[1]

Hizballah is a Lebanon-based Shia Islamic organization with political, social, and terrorist components.  Hizballah was founded in the 1980s with support from Iran after the 1982 Israeli invasion of Lebanon, and its mission includes establishing a fundamentalist Islamic state in Lebanon.  Since Hizballah’s formation, the organization has been responsible for numerous terrorist attacks that have killed hundreds, including U.S. citizens and military personnel.  In 1997, the U.S. Department of State designated Hizballah as a foreign terrorist organization, pursuant to Section 219 of the Immigration and Nationality Act, and it remains so designated today.  In 2001, pursuant to Executive Order 13224, the U.S. Department of the Treasury designated Hizballah as a Specially Designated Global Terrorist entity.  In 2010, State Department officials described Hizballah as the most technically capable terrorist group in the world and a continued security threat to the United States.

The IJO, which is also known as the External Security Organization and “Unit 910,” is a component of Hizballah responsible for the planning and coordination of intelligence, counterintelligence, and terrorist activities on behalf of Hizballah outside of Lebanon.  In July 2012, an IJO operative detonated explosives on a bus transporting Israeli tourists in the vicinity of an airport in Burgas, Bulgaria, killing six people and injuring 32 others.  Law enforcement authorities have disrupted several other IJO attack-planning operations around the world, including through the arrest of an IJO operative surveilling Israeli targets in Cyprus in 2012, the seizure of bomb-making precursor chemicals in Thailand in 2012, the seizure of similar chemicals in May 2015 in connection with the arrest of another IJO operative, and the seizure of approximately three tons of ammonium nitrate in London in the fall of 2015.  Since June 2017, multiple IJO operatives have been arrested, charged, and convicted in the Southern District of New York for terrorism-related offenses.

Beginning in at least 1993, EL REDA has led terrorist operations on behalf of Hizballah and the IJO in South America, Asia, and Lebanon.  EL REDA was responsible for, among other things, helping to plan and execute the July 18, 1994, bombing of the Asociaión Mutual Israelita Argentina (“AMIA”) building in Buenos Aires, Argentina, which killed 85 people and injured hundreds more.  EL REDA’s activities for Hizballah in connection with the AMIA bombing included relaying information to IJO operatives that was used for planning and executing the attack.  In the decades following the attack, EL REDA continued to engage in terrorist activity on Hizballah’s behalf by recruiting, training, and managing IJO operatives around the world.  EL REDA deployed IJO operatives to Thailand, Panama, and Peru, among other places, to help Hizballah and the IJO conduct pre-operational surveillance in support of attack planning and stockpile explosive precursor chemicals, including ammonium nitrate.  For example, in or about May 2009, EL REDA instructed an IJO operative to travel to Thailand to help destroy a cache of ammonium nitrate and other explosive materials that the IJO believed was under law enforcement surveillance.  In or about February 2011, EL REDA instructed an IJO operative to travel to Panama to surveil the Panama Canal and Embassies maintained by the United States and Israel, and in or about January 2012, EL REDA instructed an IJO operative to travel again to Panama to conduct additional pre-operational surveillance. 

*                *                *

EL REDA, 58, of Lebanon, has been charged with: (i) providing material support to a designated foreign terrorist organization, which carries a maximum sentence of 20 years in prison; (ii) conspiring to provide material support to a designated foreign terrorist organization, which carries a maximum sentence of 20 years in prison; (iii) aiding and abetting the receipt of military-type training from a designated foreign terrorist organization, which carries a maximum sentence of 10 years in prison or a fine; and (iv) conspiring to receive military-type training from a designated foreign terrorist organization, which carries a maximum sentence of five years in prison. 

The maximum potential sentences in this case are prescribed by Congress and provided here for informational purposes only, as any sentence would be imposed by a judge.

Mr. Williams praised the outstanding investigative work of the FBI’s New York Joint Terrorism Task Force, which principally consists of agents from the FBI and detectives from the NYPD.  Mr. Williams also thanked the Department of Justice’s National Security Division, Counterterrorism Section, and the Department of Justice’s Office of International Affairs, for their assistance.

This case is being handled by the Office’s National Security and International Narcotics Unit.  Assistant U.S. Attorneys Jacob H. Gutwillig and Jason A. Richman are in charge of the prosecution, with assistance from Deputy Chief Larry Schneider of the Counterterrorism Section.

The charges 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.

Damian Williams, the United States Attorney for the Southern District of New York, and Edward A. Caban, the Commissioner of the New York City Police Department (“NYPD”), announced the unsealing of an Indictment today charging three members of a Bronx-based narcotics trafficking organization with conspiring to distribute narcotics and with possessing firearms in furtherance of the narcotics trafficking conspiracy.  BRYANT ESTEVEZ, a/k/a “Smack,” and TEREL BYERS, a/k/a “Rell,” a/k/a “Raff,” were arrested yesterday and will be presented today before U.S. Magistrate Judge Stewart D. Aaron.  A third defendant, JOHNNY MONTEDEOCA, a/k/a “Chi,” remains at large.  This case is assigned to U.S. District Judge Victor Marrero.

U.S. Attorney Damian Williams said: “As alleged, the defendants took over an apartment building in the Bronx and used it to sell fentanyl, heroin, and other drugs, and carried guns to protect their operation.  Worse still, they allegedly peddled these incredibly dangerous substances mere feet from a grade school.  Today’s arrests make abundantly clear that this level of disregard for the safety and well-being of the communities in this district will not be tolerated.  Thanks to the work of law enforcement and the prosecutors of this Office, these defendants now face serious federal penalties.”

NYPD Commissioner Edward A. Caban said: “Today’s charges exemplify the NYPD’s efforts to eliminate illegal drugs and guns from New York City neighborhoods – especially in the vicinity of our schools.  I commend our dedicated NYPD investigators and everyone involved in this case from the office of the U.S. Attorney for the Southern District because safeguarding our children will always be at the forefront of our shared public safety mission.”

As alleged in the Indictment unsealed today in Manhattan federal court and in other court filings:[1]

From at least in or about February 2023 through at least in or about December 2023, ESTEVEZ, BYERS, and MONTEDEOCA were part of a narcotics trafficking organization that sold drugs and firearms in the Bronx.  This organization (the “Concord Avenue Crew”) operated principally out of a residential building (the “Building”) located on Concord Avenue in the Bronx across the street from an elementary and middle school.  The Concord Avenue Crew sold drugs — including fentanyl-laced heroin, crack cocaine, and powder cocaine — from the Building at all hours of the day and night, seven days a week.  These sales were conducted, among other places, on the sidewalk in front of the Building; through the window of a street-level apartment in the Building; and inside a side entrance to the Building.  The Concord Avenue Crew’s narcotics trafficking operation caused drug customers to line up on the street outside the Building, interfered with residents’ access to the Building, and prompted repeated complaints to the NYPD by residents and by parents whose children attended school across the street.

Members of the Concord Avenue Crew routinely carried firearms in connection with their narcotics trafficking operation, including by carrying firearms on their persons and storing them in areas where they were stashing and selling narcotics.  On multiple occasions, members of the Concord Avenue Crew also sold firearms to undercover officers.

*                *                *

ESTEVEZ, 25, of the Bronx, New York; BYERS, 21, of the Bronx, New York; and MONTEDEOCA, 34, of the Bronx, New York, are each charged with conspiracy to distribute and possess with intent to distribute 40 grams and more of mixtures and substances containing a detectable amount of fentanyl and mixtures and substances containing detectable amounts of heroin, cocaine base, and cocaine.  This charge carries a mandatory minimum sentence of five years in prison and a maximum sentence of 40 years in prison.  Each of the defendants is also charged with possessing firearms in furtherance of the narcotics trafficking offense charged in the Indictment, which carries a mandatory minimum sentence of five years in prison, which must be served consecutively to any other sentence imposed, and a maximum sentence of life in prison.

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

Mr. Williams praised the outstanding investigative work of the NYPD and thanked the Office of the New York State Attorney General for its assistance. 

The prosecution of this case is being handled by the Office’s Violent & Organized Crime Unit and Narcotics Unit.  Assistant U.S. Attorneys Patrick R. Moroney and Alexandra S. Messiter 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 set forth herein constitute only allegations, and every fact described should be treated as an allegation.

Samuel Salman El Reda Participated in Terrorist Operations for Hezbollah in South America, Asia and Lebanon, and Helped Plan and Execute Hezbollah’s July 18, 1994, Bombing of the Asociación Mutual Israelita Argentina Building in Buenos Aires, Killing 85 People

A Manhattan federal court today unsealed terrorism charges against Samuel Salman El Reda, aka Samuel Salman El Reda El Reda, Salman Raouf Salman, Sulayman Rammal, Salman Ramal, Salman Raouf Salman, and Hajj, 58, a dual Colombian-Lebanese citizen and member of Hezbollah’s Islamic Jihad Organization (IJO), in connection with El Reda’s alleged role leading decades of terrorist activity on behalf of Hezbollah and the IJO.

El Reda is charged with, among other offenses, conspiring to provide and providing material support to Hezbollah, a designated foreign terrorist organization. El Reda is based in Lebanon and remains at large.

“Nearly three decades ago, long-time Hezbollah terrorist operative Samuel Salman El Reda allegedly helped plan and execute the heinous attack on a Buenos Aires Jewish community center that murdered 85 innocent people and injured countless others,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “This indictment serves as a message to those who engage in acts of terror: that the Justice Department’s memory is long, and we will not relent in our efforts to bring them to justice.”

“As alleged, for decades, Samuel Salman El Reda has led terrorist operations on behalf of the Islamic Jihad Organization of Hezbollah, including a 1994 bombing in Buenos Aires that massacred 85 innocent victims,” said U.S. Attorney Damian Williams for the Southern District of New York. “The career prosecutors of this office have not forgotten the pain and suffering that El Reda has allegedly caused, and we thank the dedication of our law enforcement partners for pursuing this important case. The Southern District of New York continues to be a leader in prosecuting violent terrorists and terrorist organizations, and we will not rest until those who create chaos and destruction are brought to justice.”

“While it’s been nearly 30 years since this horrific terrorist attack, the FBI and our partners throughout the U.S. government are committed to delivering justice for the victims’ families,” said Executive Assistant Director Larissa L. Knapp of the FBI’s National Security Branch. “Our reach and our memory are long, as this investigation shows. The charges unsealed today are a result of the hard work and determination of the men and women of the FBI and Justice Department, and the assistance of our international partners in law enforcement.”

According to court documents, Hezbollah is a Lebanon-based Shia Islamic organization with political, social and terrorist components. Hezbollah was founded in the 1980s with support from Iran after the 1982 Israeli invasion of Lebanon, and its mission includes establishing a fundamentalist Islamic state in Lebanon. Since Hezbollah’s formation, the organization has been responsible for numerous terrorist attacks that have killed hundreds, including U.S. citizens and military personnel. In 1997, the Department of State designated Hezbollah as a foreign terrorist organization, pursuant to Section 219 of the Immigration and Nationality Act, and it remains so designated today. In 2001, pursuant to Executive Order 13224, the Department of the Treasury designated Hezbollah as a Specially Designated Global Terrorist entity. In 2010, State Department officials described Hezbollah as the most technically capable terrorist group in the world and a continued security threat to the United States.

The IJO, which is also known as the External Security Organization and “Unit 910,” is a component of Hezbollah responsible for the planning and coordination of intelligence, counterintelligence and terrorist activities on behalf of Hezbollah outside of Lebanon. In July 2012, an IJO operative detonated explosives on a bus transporting Israeli tourists in the vicinity of an airport in Burgas, Bulgaria, killing six people and injuring 32 others. Law enforcement authorities have disrupted several other IJO attack-planning operations around the world, including through the arrest of an IJO operative surveilling Israeli targets in Cyprus in 2012, the seizure of bomb-making precursor chemicals in Thailand in 2012, the seizure of similar chemicals in May 2015 in connection with the arrest of another IJO operative, and the seizure of approximately three tons of ammonium nitrate in London in the fall of 2015. Since June 2017, multiple IJO operatives have been arrested, charged and convicted in the Southern District of New York for terrorism-related offenses.

Beginning in at least 1993, El Reda has led terrorist operations on behalf of Hezbollah and the IJO in South America, Asia and Lebanon. El Reda was responsible for, among other things, helping to plan and execute the July 18, 1994, bombing of the Asociaión Mutual Israelita Argentina (AMIA) building in Buenos Aires, which killed 85 people and injured hundreds more. El Reda’s activities for Hezbollah in connection with the AMIA bombing included relaying information to IJO operatives that was used for planning and executing the attack. In the decades following the attack, El Reda continued to engage in terrorist activity on Hezbollah’s behalf by recruiting, training and managing IJO operatives around the world. El Reda deployed IJO operatives to Thailand, Panama and Peru, among other places, to help Hezbollah and the IJO conduct pre-operational surveillance in support of attack planning and stockpile explosive precursor chemicals, including ammonium nitrate. For example, in or about May 2009, El Reda instructed an IJO operative to travel to Thailand to help destroy a cache of ammonium nitrate and other explosive materials that the IJO believed was under law enforcement surveillance. In or about February 2011, El Reda instructed an IJO operative to travel to Panama to surveil the Panama Canal and Embassies maintained by the United States and Israel, and in or about January 2012, El Reda instructed an IJO operative to travel again to Panama to conduct additional pre-operational surveillance.

El Reda is charged with: (i) providing material support to a designated foreign terrorist organization, which carries a maximum penalty of 20 years in prison; (ii) conspiring to provide material support to a designated foreign terrorist organization, which carries a maximum penalty of 20 years in prison; (iii) aiding and abetting the receipt of military-type training from a designated foreign terrorist organization, which carries a maximum penalty of 10 years in prison or a fine; and (iv) conspiring to receive military-type training from a designated foreign terrorist organization, which carries a maximum penalty of five years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

The FBI’s New York Joint Terrorism Task Force, which principally consists of agents from the FBI and detectives from the New York Police Department, is investigating the case. The Justice Department’s Office of International Affairs provided valuable assistance.

Assistant U.S. Attorneys Jacob H. Gutwillig and Jason A. Richman for the Southern District of New York are prosecuting the case, with valuable assistance from Deputy Chief Larry Schneider of the National Security Division’s Counterterrorism Section.

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

Damian Williams, the United States Attorney for the Southern District of New York, announced today that AAMIR WAHAB was sentenced to three years in prison for his role in a scheme to defraud the National Basketball Association (“NBA”) Players’ Health and Welfare Benefit Plan (the “Plan”).  U.S. District Judge Valerie E. Caproni imposed the sentence. 

U.S. Attorney Damian Williams said: “Aamir Wahab exploited his dental practice to facilitate a million-dollar health care fraud scheme.  Wahab’s goals were ambitious, telling a codefendant to ‘get [him] the whole NBA,’ but the career prosecutors of this Office and our law enforcement partners were relentless in bringing Wahab and his codefendants to justice.”  

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

The NBA Players’ Health and Welfare Benefit Plan is a health care plan providing benefits to eligible active and former players of the NBA.  WAHAB is a dentist licensed in California who owns and operates a dental practice (“Dental Office-1”) located in Beverly Hills, California.

From at least in or about 2018, up to and including at least in or about 2019, WAHAB participated in a scheme with several other former NBA players, including Terrence Williams and Keyon Dooling, to defraud the Plan.[1]  WAHAB’s role in the scheme was to document that former NBA players or their spouses received certain dental services, when, in reality, the services were not provided. 

WAHAB accomplished his role in the scheme in two ways.  First, WAHAB created, and caused others to create, fraudulent invoices for former NBA players or their spouses.  The former NBA players would then submit the fraudulent invoices to the Plan to request reimbursements that they were not entitled to.  Second, WAHAB charged, and caused others to charge, the Plan-issued debit cards of former NBA players.  The Plan-issued debit cards were intended to be used by Plan participants to pay for eligible medical services at the point of service.  However, WAHAB charged the Plan-issued debit cards of former NBA players for medical services that were never actually provided.  In return for his participation in the scheme, WAHAB received a portion of the fraud proceeds.

As evidenced by text messages recovered in the search of WAHAB’s cellular phone, WAHAB was eager to take part in the fraud scheme, in the hopes of making illicit profits.  When Dooling wrote to WAHAB, “Let’s make this thing grow sir,” WAHAB responded “Lol I’m down bro Get me the whole NBA.”  Similarly, WAHAB and Williams had explicit conversations about the creation of fraudulent invoices.  In March 2019, Williams wanted WAHAB to charge co-conspirators’ Plan-issued debit cards more frequently, but WAHAB was initially reluctant.  While disagreeing about whether to charge the debit cards, Williams and WAHAB also argued about whether Williams owed WAHAB approximately $12,000 in fraud proceeds.  Annoyed and angry, Williams messaged WAHAB: “YOUVE MADE THOUSANDS OF F[----]ING DOLLARS TO PRINT A[N] INVOICE WITH A NAME AT THE TOP like you f[----]ing kidding me[?!]  We not gonna act like you doing dental work.”

*                *                *

In addition to his prison term, WAHAB, 44, of Los Angeles, California, was ordered to forfeit $458,576.50 and pay restitution of $1,192,522.

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

The prosecution of this case is being handled by the Office’s Complex Frauds and Cybercrime Unit.  Assistant U.S. Attorneys Ryan B. Finkel and Daniel G. Nessim are in charge of the prosecution.

[1] Williams and Dooling pled guilty.  Williams was sentenced to 10 years in prison, and Dooling was sentenced to 30 months in prison.

Damian Williams, the United States Attorney for the Southern District of New York, Edward A. Caban, the Commissioner of the New York City Police Department (“NYPD”), Frank A. Tarentino III, Special Agent in Charge Drug Enforcement Administration (“DEA”) New York Division, and Erin Keegan, the Acting Special Agent in Charge of the U.S. Department of Homeland Security, Homeland Security Investigations (“HSI”), announced that a grand jury returned a five-count Indictment charging JYSHUN TROWER with transporting and selling over 40 firearms in New York and TROWER and STIVEN ARTURO MARTINEZ NIN with conspiracy to distribute large quantities of counterfeit pharmaceutical pills containing fentanyl.  TROWER and MARTINEZ NIN were arrested on Thursday, December 14, 2023, and presented in Manhattan federal court before U.S. Magistrate Judge Ona T. Wang on Friday, December 15, 2023.  The case is assigned to the Honorable Denise L. Cote.

U.S. Attorney Damian Williams said: “Jyshun Trower and Stiven Arturo Martinez Nin are charged with having allegedly peddled two of the deadliest threats to New Yorkers—illegal firearms and fentanyl.  The firearms recovered by law enforcement included military-style assault weapons, and the drugs seized included more than a kilogram of counterfeit pharmaceutical pills containing deadly fentanyl and fentanyl analogue.  I want to thank the law enforcement agents who investigated this case for their tireless work resulting in today’s charges and reiterate this Office’s commitment to ensuring that those who flood the streets with deadly guns and drugs will be brought to justice.”

NYPD Commissioner Edward A. Caban said: “This indictment shows that the dangerous work conducted by the NYPD and our law enforcement partners is effective, and that the proliferation of illegal guns and drugs on our streets continues.  I thank all the members of the OCDETF and the office of the U.S. Attorney’s Office for the Southern District of New York for their tireless dedication to our shared public safety mission.” 

DEA Special Agent in Charge Frank Tarentino said: “This investigation resulted in 43 firearms and thousands of fake pills containing fentanyl being taken off the streets and exemplifies law enforcement’s oath to safeguard our communities.  I commend the men and women from NYPD, DEA, HSI and the U.S. Attorney’s Office for the Southern District of New York for their diligent work on this investigation.”      

HSI Acting Special Agent in Charge Erin Keegan said: “The defendants are accused of crimes that threaten not only the lives of those purchasing these counterfeit drugs, but also potential victims of gun violence in New York City.  HSI New York is proud to work closely with our law enforcement partners, including the members of the Organized Crime Drug Enforcement Task Force, every day in preventing deadly narcotics and weapons from reaching the streets and the community.”    

According to the allegations in the Indictment and Complaint:[1]

From on or about May 3, 2023, through on or about December 14, 2023, JYSHUN TROWER illegally transported and sold firearms in Manhattan and the New York City area.  In almost a dozen transactions, TROWER illegally sold approximately 43 firearms to an undercover law enforcement agent and others.  The firearms included multiple semiautomatic pistols, semiautomatic rifles, assault style rifles and pistols, ammunition, high-capacity magazines, a ghost gun, and components used to convert a semiautomatic pistol into a fully automatic pistol, also known as a machine gun.  Images of several of the firearms that TROWER sold are below. 

Firearms TROWER sold in Manhattan on July 31, 2023.

Firearms TROWER sold in Manhattan on August 17, 2023.

Firearms TROWER sold in Manhattan on August 25, 2023.

Firearms TROWER sold in Manhattan on September 29, 2023.

In addition, TROWER and MARTINEZ NIN conspired to sell 10,000 fentanyl pills to an undercover law enforcement agent.  TROWER had also arranged with the undercover agent to include several firearms in the transaction.  On or about December 14, 2023, TROWER and MARTINEZ NIN arrived at the sale location. Law enforcement apprehended TROWER.  MARTINEZ NIN attempted to flee on foot and discard a bag containing over one kilogram of pills and their packaging. 

*                *                *

JYSHUN TROWER, 27, of Virginia Beach, Virginia, is charged with one count of illegally dealing firearms, which carries a maximum sentence of five years in prison, one count of illegally transporting and distributing firearms, which carries a maximum sentence of five years in prison, one count of conspiring to distribute fentanyl, which carries a maximum sentence of life in prison, one count of using and carrying firearms while engaging in the narcotics conspiracy, which carries a maximum sentence of life in prison, and one count of attempted transfer of a firearm for use in a drug trafficking crime, which carries a maximum sentence of 15 years in prison.

STIVEN ARTURO MARTINEZ NIN, 24, of Carlisle, Pennsylvania, is charged with one count of conspiring to distribute fentanyl, which carries a maximum sentence of life in prison.

The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.

Mr. Williams praised the outstanding investigative work of the NYPD, DEA New York Division, and HSI New York Field Office.  

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

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

Damian Williams, the United States Attorney for the Southern District of New York, and Naomi Gruchacz, the Special Agent in Charge of the New York Regional Office of the U.S. Department of Health and Human Services - Office of Inspector General (“HHS-OIG”), announced today the arrests of ERIN FOLEY and TED ALBIN on charges of health care fraud and conspiracy to violate the Anti-Kickback Statute.  As alleged in a four-count Indictment unsealed today in federal court, FOLEY and ALBIN ran a Medicare billing company that they used to bill Medicare for more than $25 million in fraudulent claims for durable medical equipment (“DME”), and on which Medicare and related private insurers paid out more than $9 million.  FOLEY and ALBIN are also charged with illegally buying such DME orders for use in their own DME supply companies and with introducing buyers to sellers in return for additional kickbacks.

FOLEY is expected to be presented later today before U.S. Magistrate Judge William Matthewman in West Palm Beach, Florida.  ALBIN is expected to be presented this afternoon before U.S. Magistrate Judge Shaniek M. Maynard in Fort Pierce, Florida.  The case was assigned to U.S. District Judge John G. Koeltl in Manhattan.

U.S. Attorney Damian Williams said: “Medicare is a valuable taxpayer-funded program designed to provide affordable health care to people over 65 or with disabilities, not to line the pockets of those who would enrich themselves through fraud.  Here, the defendants are charged with illegally profiting from the purchase and sale of millions of dollars’ worth of bogus orders for medical equipment, bilking Medicare in the process.  Such illicit conduct can affect the availability of medical services and drive up the cost of health care, but the career prosecutors of this office and our law enforcement partners will remain diligent in protecting these vital taxpayer-funded programs.”

HHS-OIG Special Agent in Charge Naomi Gruchacz said: “Violations of the Anti-Kickback Statute involving durable medical equipment can waste scarce federal health care program funds and corrupt the medical decision-making process.  Individuals who participate in the federal health care system are required to obey laws meant to preserve both the integrity of program funds and the provision of appropriate, quality services to patients.”

According to statements made in court and publicly filed documents in this case:[1]

From at least 2018 through 2021, FOLEY and ALBIN owned and controlled Grapevine Professional Services, Inc. (“Grapevine”), a billing company that they used to bill Medicare for more than $25 million, and to collect more than $9 million, through claims based on orders for DME that had been unlawfully sold and bought.  Such billing included both billing directly to Medicare through Medicare Part B and billing to private insurance companies that were reimbursed through Medicare Part C.  Most of these unlawful purchases of DME orders were by Grapevine customers that were registered with Medicare as DME supply companies.  Additional unlawful purchases were made directly by FOLEY and ALBIN through three DME supply companies that they themselves owned and controlled.  Once these DME orders were unlawfully purchased, FOLEY and ALBIN used those orders as the basis for fraudulent claims to Medicare and to private insurers covered by Medicare Part C. 

In addition, FOLEY and ALBIN acted essentially as brokers of DME orders, introducing Grapevine customers who wished illegally to buy DME orders to co-conspirators who illegally sold them orders.  In return for such introductions of buyers to sellers, FOLEY and ALBIN received additional kickbacks, both in the form of cash and in the form of additional DME orders.  FOLEY and ALBIN also profited through these introductions by gaining additional illegal billing business for Grapevine.  Following these introductions, FOLEY and ALBIN continued to oversee the relations between buyers and sellers of DME orders, for example by tracking how many orders particular sellers owed to particular buyers.

*                *                *

FOLEY, 46, of Loxahatchee, Florida, and ALBIN, 46, of Stuart, Florida, are each charged with conspiracy to commit health care fraud and wire fraud, which carries a maximum sentence of 20 years in prison; health care fraud, which carries a maximum sentence of 10 years in prison; wire fraud, which carries a maximum sentence of 20 years in prison; and conspiracy to violate the Anti-Kickback Statute, which carries a maximum sentence of five years in prison. 

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 HHS-OIG.

This case is being handled by the Office’s Complex Frauds and Cybercrime Unit.  Assistant U.S. Attorneys David Raymond Lewis and Rushmi Bhaskaran are in charge of the prosecution. 

The charges contained in the Indictment are merely allegations, and the defendants are 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.

Damian Williams, the United States Attorney for the Southern District of New York, announced today that TREVOR MILTON was sentenced by U.S. District Judge Edgardo Ramos to four years in prison for engaging in securities and wire fraud in connection with his scheme to defraud and mislead investors about the development of products and technology by the company he founded, Nikola Corporation (“Nikola”).  MILTON was previously convicted after a one-month trial before Judge Ramos.

U.S. Attorney Damian Williams said: “Trevor Milton lied to investors again and again — on social media, on television, on podcasts, and in print.  But today’s sentence should be a warning to start-up founders and corporate executives everywhere — ‘fake it till you make it’ is not an excuse for fraud, and if you mislead your investors, you will pay a stiff price.”

According to the Indictment, statements made in public court proceedings and filings, and the evidence at trial:

From at least in or about November 2019 up through and including at least in or about September 2020, TREVOR MILTON engaged in a scheme to defraud investors by inducing them to purchase shares of Nikola Corporation, the electric- and hydrogen-powered vehicle and energy company that MILTON founded, through false and misleading statements regarding Nikola’s product and technology development.  MILTON’s scheme targeted individual, non-professional investors — so-called “retail investors” — by making false and misleading statements directly to the investing public through social media and television, print, and podcast interviews.

MILTON made these false and misleading statements regarding Nikola’s products and capabilities to induce retail investors to purchase Nikola stock.  MILTON took advantage of the fact that Nikola went public by merging with a Special Purpose Acquisition Company or “SPAC,” rather than through a traditional IPO, by making many of his false and misleading claims during a period where he would have not been allowed to make public statements under rules that govern IPOs.

MILTON made false claims regarding nearly all aspects of Nikola’s business, including: (i) false and misleading statements that the company had early success in creating a “fully functioning” semi-truck prototype known as the “Nikola One,” when MILTON knew the prototype was inoperable; (ii) false and misleading statements that Nikola had engineered and built an electric- and hydrogen-powered pickup truck known as “the Badger” from the “ground up” using Nikola’s parts and technology, when MILTON knew that was not true; (iii) false and misleading statements that Nikola was producing hydrogen and was doing so at a reduced cost, when MILTON knew that in fact no hydrogen was being produced at all by Nikola, at any cost; and (iv) false and misleading claims that reservations made for the future delivery of Nikola’s semi-trucks were binding orders representing billions in revenue, when the vast majority of those orders could be cancelled at any time. 

For example, when Nikola’s stock was publicly traded in 2020, MILTON claimed that Nikola had defied expectations as a young, disruptive company when it managed to build its prototype hydrogen-powered semi-truck, the Nikola One, which Nikola unveiled on or about December 1, 2016, at a large event that was filmed and broadcast on the internet.  During that event and later, MILTON claimed that the prototype Nikola One “fully functions and works, which is really incredible.”  In fact, the Nikola One prototype was never completed and never functioned.  Rather, the prototype was wholly missing significant parts, including gears and motors, and the control system (i.e., the system that communicates the driver’s directions to the vehicle) and other significant systems were missing or incomplete.  Later, in or about January 2018, and despite the fact that the Nikola One prototype was never completed or operational, MILTON published on Twitter and also published on his own Twitter account a video in which the Nikola One appeared to be driving on its own power down a road with no incline.  In fact, to film these clips, the Nikola One was towed to the top of a hill, at which point the “driver” released the brakes, and the truck rolled down the hill until being brought to a stop in front of the stop sign.

Also in 2020, at the same time he was spreading misinformation to investors generally to increase Nikola stock price, MILTON also made false and misleading statements about Nikola’s business and technology to a particular individual as part of an effort to use Nikola stock to make purchases, even when MILTON was subject to a lockup and so could not yet sell his stock.  Specifically, MILTON made misrepresentations about Nikola’s business to an individual in order to induce that individual to accept options to purchase Nikola stock (the value of which had already been inflated by MILTON’s scheme to defraud retail investors) in lieu of cash for the purchase of a substantial ranch in Utah.

*                *                *

In addition to the prison sentence, MILTON, 41, of Alpine, Wyoming, was sentenced to three years of supervised release, ordered to forfeit a property in Utah, and ordered to pay a fine of $1 million.  Judge Ramos will set restitution in a future proceeding.

Mr. Williams praised the outstanding work of the U.S. Postal Inspection Service, which jointly conducted the investigation in this case with special agents from the U.S. Attorney’s Office.  Mr. Williams further thanked the U.S. Securities and Exchange Commission, which filed a parallel civil action, for its cooperation.

The prosecution of this case is being overseen by the Office’s Securities and Commodities Fraud Task Force.  Assistant U.S. Attorneys Matthew Podolsky and Nicolas Roos are in charge of the case.

Damian Williams, the United States Attorney for the Southern District of New York, announced that BRADLEY PIERRE pled guilty today to conspiracy to commit bribery and conspiracy to defraud the Internal Revenue Service (“IRS”) in connection with his orchestration of a $60 million fraud targeting No-Fault automobile insurance companies. PIERRE pled guilty before the Honorable Paul G. Gardephe and is scheduled to be sentenced on May 7, 2024.

U.S. Attorney Damian Williams said: “For over a decade, Bradley Pierre led one of the largest No-Fault insurance frauds in the history of New York, bribing medical professionals and others, scamming insurance companies, defrauding the IRS, and ultimately denying many accident victims fair and proper treatment because of his rigged system. But innocent victims will not stand alone. Those who seek to shamelessly reap the benefits of scams like this will be brought to justice.”    

According to the Indictment, the plea agreement, and statements made in court:  

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 at least in or about 2008 through in or about 2021, PIERRE agreed with others (the “Clinic Controllers”) to unlawfully own and run medical clinics located in the New York area including, among others, Veda Medical, Sky Medical, Sun Medical, and Rutland Medical (the “Clinics”).  PIERRE knew that clinics are unable to bill insurance companies for No-Fault benefits if the medical facilities are controlled by non-physicians.  PIERRE nonetheless agreed with others, including doctors, to submit bills to insurance companies falsely representing that the Clinics were owned and operated by licensed doctors, and for doctors to lie under oath during Examinations under Oath (“EUOs”) about the ownership, control, and finances of the Clinics.  PIERRE personally coached doctors to lie under oath in these EUOs.

PIERRE used his control of the Clinics for personal profit.  Between 2008 and 2021, PIERRE took over $20,000,000 from the Clinics by either transferring the funds directly to bank accounts under his control or using the Clinics' bank accounts to pay his personal finances.  PIERRE also used his control of the Clinics to steer prescriptions to pharmacies in return for over a million dollars in kickbacks and to steer patients to seek legal representation from his wife’s law firm, the Law Firm of Nonna Shikh (the“Shikh Firm”).  The Shikh Firm then filed lawsuits against insurance companies on these patients’ behalf.  PIERRE maintained an office at the Shikh Firm and was actively involved in the legal practice as a “manager.”

PIERRE used his control of the Clinics and his managerial role at the Shikh Firm to also steer patients to seek MRIs at a medical facility over which he exercised substantial control (the “MRI Facility”).  PIERRE also agreed with the purported sole owner of the MRI Facility, who was a doctor, that the doctor would falsely report injuries in MRI reports.  These falsified injuries allowed the Clinics to bill insurance companies for additional, unnecessary medical services and allowed attorneys to falsely claim injuries in lawsuits against insurance companies.  PIERRE and the doctor agreed that the doctor would lie to insurance companies during EUOs about PIERRE’s role in the MRI Facility. 

PIERRE hid his control over several of the Clinics and the MRI Facility using phony loan arrangements.  These agreements claimed that PIERRE was making non-recourse loans to the Clinics and the MRI Facility, which would only have to be paid back if insurance companies paid the medical practices’ claims.  The agreements also set PIERRE’s “fee” as twice the amount loaned to the practices.  However, in reality, PIERRE took almost $10,000,000 in excess of what these purported loan agreements permitted.

PIERRE further agreed to pay bribes to fill the Clinics and the MRI Facility with patients.  From at least in or about 2015 up to and including 2021, PIERRE agreed with others to pay bribes to hospital employees, 911 dispatchers, and other individuals (collectively, “lead sources”) for the confidential names and numbers of motor vehicle accident victims.  PIERRE agreed that others, including Anthony Rose, a/k/a “Todd Chambers,” would then call victims and lie to them to induce victims to receive medical treatment at the Clinics and legal representation from the Shikh Firm.  PIERRE helped Rose expand his bribery operation to New Jersey by recommending clinics and attorneys in the state that would pay kickbacks for referrals.  PIERRE also recommended that Rose open a shell company to hide the illegality of the payments, which Rose in fact did.  PIERRE paid Rose over $800,000 as part of the bribery scheme.

PIERRE further recruited his own lead sources to participate in the bribery scheme.  For instance, in or about 2017, PIERRE recruited Andrew Prime, knowing that Prime was bribing 911 operators and a hospital employee for confidential information.  PIERRE paid Prime over $800,000 as part of the bribery scheme.  PIERRE also personally recruited and bribed several of his own lead sources, including 911 operators and a source in 2019 that PIERRE codenamed the “Motherload” or “ML.”

PIERRE also agreed to bribe medical offices to send patients to the MRI Facility for MRIs.  These medical offices included, among others, Epione Medical Center and Modern Brooklyn Medical.  PIERRE facilitated these bribe payments through several intermediaries, including Anthony Rose, Jelani Wray, and others.  PIERRE paid Jelani Wray over $800,000 in connection with these bribes.

PIERRE then engaged in tax evasion.  PIERRE utilized two companies in connection with the healthcare fraud and bribery schemes: Medical Reimbursement Consultants (“MRC”) and Marketing 4 You (“M4Y”).  PIERRE hid income from the IRS by concealing multiple bank accounts for MRC and using a series of check cashers for checks made out to MRC and M4Y.  PIERRE also paid personal expenses from MRC and M4Y’s bank accounts but improperly reported these payments as “business expenses.”  These included payments for his wedding, home renovations, jewelry, furniture, luxury clothing, travel, and gifts.  In total, PIERRE underreported income, falsely reported expenses of over $4 million, and deprived the IRS of approximately $1.5 million in taxes due.

*                *                *

BRADLEY PIERRE, 41, of Closter, New Jersey, pled guilty to one count of conspiracy to commit bribery, which carries a maximum sentence of five years in prison, and one count of conspiracy to defraud the IRS, 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 work of the Federal Bureau of Investigation and the Internal Revenue Service. 

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, Qais Ghafary, and Michael Lockard are in charge of the prosecution.

Damian Williams, the United States Attorney for the Southern District of New York, announced that EARL INGARFIELD was sentenced to 30 months in prison for orchestrating multiple “pump and dump” stock fraud schemes designed to target retail investors and manipulate trading in penny stock shares, including a scheme to manipulate the shares of Suburban Minerals Corporation (“SUBB”) from which INGARFIELD made more than $1.4 million.  INGARFIELD previously pled guilty before U.S. District Judge Jed S. Rakoff, who imposed today’s sentence.

U.S. Attorney Damian Williams said: “Earl Ingarfield engaged in a classic pump and dump scheme that victimized innocent investors and undermined the integrity of our public markets.  Those who defraud investors by spreading false and misleading information for their own monetary gain will face stiff punishment for their crimes.”

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

From at least 2013 through March 2014, EARL INGARFIELD was the leader of multiple schemes to manipulate the stock of penny stocks, including the price of SUBB, a public company traded on the over-the-counter (“OTC”) market.  In or about 2013, INGARFIELD obtained control of SUBB, installing management at the company that acted at his direction and financing SUBB’s operations.  INGARFIELD also obtained convertible promissory notes issued by SUBB, which he then converted into tens of millions of SUBB shares that were nominally held by offshore shell entities.  INGARFIELD used these shell entities to conceal his involvement and the fact that he owned and controlled the vast majority of the shares of SUBB. 

In early 2014, at INGARFIELD’s direction, SUBB announced that it was purportedly acquiring a producing African diamond mine worth $5 billion.  But in reality, no such mine existed.  Between January 2014 and March 2014, SUBB issued a series of press releases making false representations regarding that purported mine acquisition and SUBB’s operations.  During the same time period, INGARFIELD orchestrated a marketing campaign through which promotional materials echoing the same false claims were distributed to the investing public by email.  The false and misleading press releases and email marketing campaign caused SUBB’s share price and trading volume to become artificially inflated.

While SUBB’s price was artificially inflated, INGARFIELD profited by selling millions of his secretly amassed shares, all at the expense of the investing public.  Between January and March 2014, he made more than $1.4 million from the sale of SUBB shares.  

On March 7, 2014, the Securities and Exchange Commission halted trading in SUBB, after which the share price dropped precipitously and never recovered.   

*                *                *

In addition to his prison term, EARL INGARFIELD, 64, of Las Vegas, Nevada, was sentenced to two years of supervised release and ordered to pay restitution of $1,804,738 and forfeiture of $1,418,473. 

Mr. Williams praised the outstanding work of Homeland Security Investigation’s El Dorado Task Force. 

The matter is being handled by the Money Laundering and Transnational Criminal Enterprises Unit.  Assistant U.S. Attorneys Emily Deininger, Shiva Logarajah, and Tara La Morte are in charge of the prosecution.

Damian Williams, the United States Attorney for the Southern District of New York, and James Smith, Assistant Director in Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), announced today the arrest of JOHN ARTHUR HANRATTY for charges in connection with a fraudulent scheme to steal money from a Federal Deposit Insurance Corporation (“FDIC”)-insured bank through lines of credit totaling $20 million granted to HANRATTY’s municipal tax lien investment firm.  HANRATTY was arrested this morning and is expected to be presented today before a U.S. Magistrate Judge in the District of Puerto Rico.

U.S. Attorney Damian Williams said: “John Arthur Hanratty, a New York-licensed attorney and the founder of a multi-million-dollar municipal tax lien investment firm, allegedly stole money from a bank to obtain lines of credit totaling $20 million, which he misappropriated by paying back investors who had sued his firm.  Thanks to this Office’s teamwork with the FBI, Hanratty is now facing serious criminal charges for his alleged fraud.”          

FBI Assistant Director in Charge James Smith said: “Fraudsters are very good at what they do. They are extremely convincing and will jump at every opportunity to defraud a new pool of potential victims. John Hanratty allegedly prioritized his own greed over decency and respect for the laws of our country. The FBI and our law enforcement partners remain dedicated to investigating and holding accountable those who flagrantly disregard our laws by seeking to enrich themselves at the expense of their victims.” 

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

HANRATTY was the Founder and Managing Director of Ebury Street Capital, LLC (“Ebury Street Capital”), an investment firm with a portfolio primarily comprised of municipal tax liens.  At all relevant times, HANRATTY served as the Managing Director and Principal for Ebury Street Capital, which manages two different funds known as Ebury Fund 1 and Ebury Fund 2.  HANRATTY has been an attorney licensed to practice law in the State of New York since 2002 and has previously held legal and compliance positions at well-known investment firms and financial institutions, including serving as the Chief Compliance Officer and General Counsel for a trading broker dealer. 

Between 2017 and 2021, HANRATTY participated in a fraudulent scheme to steal money from an FDIC-insured bank (“Victim Bank-1”) by drawing down on $20 million in commercial lines of credit that had been extended to Ebury Street Capital.  Specifically, HANRATTY made materially false statements on spreadsheets (known as “borrowing base certificates”) submitted to Victim Bank-1 summarizing the value of the municipal tax liens that Ebury Street Capital was offering as collateral for its commercial line of credit.  As a result of these false statements on Ebury Street Capital’s borrowing base certificates, Victim Bank-1 paid Ebury Street Capital large sums of money to which it was not entitled.  The false statements on Ebury Street Capital’s borrowing base certificates included, among other things, listing large quantities of municipal tax liens on the borrowing base certificates that Ebury Street Capital did not actually own and double-counting municipal tax liens by listing the same liens on multiple borrowing base certificates. 

Additionally, although Ebury Street Capital was contractually required to use money from Victim Bank-1 either to purchase municipal tax liens or for ordinary business expenses, HANRATTY actually used portions of the money obtained from Victim Bank-1 to pay off Ebury Street Capital’s investors who were threatening to sue and who, in fact, ended up suing Ebury Street Capital and HANRATTY after Ebury Street Capital was unable to pay investors who were seeking to pull out their investments from the fund. 

Ebury Street Capital’s commercial line of credit has now been completely exhausted, and the entity owes over $20 million in principal and interest to Victim Bank-1.

*                *                *

HANRATTY, 49, of San Juan, Puerto Rico, is charged with one count of wire fraud affecting a financial institution and one count of bank fraud, each of which carries a maximum sentence of 30 years in prison. 

The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.

Mr. Williams praised the investigative work of the FBI.  Mr. Williams also thanked the FBI Field Office in San Juan for their assistance in the investigation of this case.

This case is being handled by the Office’s Complex Frauds and Cybercrime Unit.  Assistant U.S. Attorneys Andrew K. Chan and Nicholas Chiuchiolo are in charge of the prosecution.

The charges contained in the Indictment are merely accusations and the defendant is presumed innocent unless and until proven guilty.

[1] As the introductory phrase signifies, the entirety of the text of the Complaint constitutes only allegations, and every fact described herein should be treated as an allegation.

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 DEWAYNE BARRETT and O’NEIL WRIGHT under the Rodchenkov Anti-Doping Act (“RADA”), which proscribes doping schemes at international sports competitions including the Olympic Games.  The Indictment alleges that BARRETT and WRIGHT obtained various performance enhancing drugs (“PEDs”) and distributed those PEDs to certain athletes in advance of, and for the purpose of cheating at, the 2020 Olympic Games held in Tokyo in the summer of 2021.  In addition to the charge under the Rodchenkov Act, BARRETT and WRIGHT are alleged to have conspired to violate the drug misbranding and adulteration laws of the U.S., and BARRETT is separately charged for his involvement in a scheme to fraudulently obtain loans through the Small Business Administration’s Paycheck Protection Program (“PPP”).

BARRETT was taken into federal custody last Thursday and presented in federal court in Manhattan before U.S. Magistrate Judge Ona T. Wang.  WRIGHT was taken into federal custody last Wednesday and was presented on Thursday in the Northern District of Georgia before U.S. Magistrate Judge Justin S. Anand.  

U.S. Attorney Damian Williams said: “As alleged, Barret and Wright’s supposed ‘coaching’ services included providing Olympic-level athletes with prohibited, performance-enhancing drugs.  Supplying illegal drugs to athletes is dangerous and illegal.  This Office is committed to rooting out corruption in international sporting events.  We will continue to prosecute those who engage in illicit doping schemes to the full extent of the law under the Rodchenkov Anti-Doping Act.”

FBI Assistant Director in Charge James Smith said: “Performance enhancing substances deprive competitors of a level playing field.  At a moment when the games offered thousands of athletes validation after years of training, Dewayne Barrett and O’Neil Wright allegedly schemed to ruin that moment by peddling illegal drugs.  Let me be clear, the FBI and our law enforcement partners will not yield in our efforts to disrupt criminal enterprises that seek to corrupt international competition.”

As alleged in the Indictment:[1]

The charges in this Indictment arise from an investigation of a scheme to provide Olympic athletes with PEDs, including drugs widely banned throughout competitive sports such as human growth hormone, clenbuterol, and the “blood building” drug erythropoietin, in advance of and for the purpose of corrupting the 2020 Olympic Games that convened in Tokyo in the summer of 2021.

BARRETT and WRIGHT purported to coach athletes, including Olympic-level athletes competing on behalf of Nigeria (“Athlete-1”), Switzerland (“Athlete-2”), and the United Kingdom (“Athlete-3”), but instead, in order to obtain an unfair and unlawful advantage, BARRETT and WRIGHT provided those athletes with prohibited, performance-enhancing drugs that were obtained and administered without valid prescriptions.

BARRETT was a track and field coach and personal trainer based in the New York City area who operated a fitness facility located in Manhattan.  WRIGHT, a former Olympic-level sprinter, was a track and field coach based in Atlanta, Georgia.  Neither BARRETT nor WRIGHT are doctors.  CC-1, an individual who held himself out as a naturopathic doctor, but was not a licensed doctor, supplied banned drugs to athletes at BARRETT and WRIGHT’s behest.

The Rodchenkov Act, which was signed into law in December 2020, prohibits any person, other than an athlete, to knowingly carry into effect, attempt to carry into effect, or conspire with any other person to carry into effect a scheme in commerce to influence by use of a prohibited substance or prohibited method any major international sports competition. 21 U.S.C. § 2402.

BARRETT is also charged with his involvement in a scheme to fraudulently obtain loans through PPP.  As alleged in the Indictment, between 2020 and 2021, BARRETT submitted online applications seeking over $2.5 million on behalf of individuals whom he represented to be independent contractors on the loan applications.  BARRETT provided a falsified Internal Revenue Service Form 1040 in support of each application, showing an inaccurate annual income for the applicant in the prior tax year.  In many cases, BARRETT was directly paid by the applicant for having submitted the fraudulent paperwork.

*                *                *

DEWAYNE BARRETT, 41, of Elmont, New York, and O’NEIL WRIGHT, 43, of Snellville, Georgia, are each charged with one count of conspiracy to violate the Rodchenkov Act, which carries a maximum sentence of 10 years, and one count of conspiracy to violate the misbranding laws, which carries a maximum sentence of five years.  BARRETT is further charged with one count of wire fraud conspiracy, which carries a maximum sentence of 20 years. 

The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by a judge.

Mr. Williams praised the outstanding investigative work of the FBI and the FBI’s Integrity in Sports and Gaming Initiative.  Mr. Williams also thanked the U.S. Customs and Border Protection, the New York City Police Department, and the U.S. Anti-Doping Agency for their assistance in the investigation.

This case is being handled by the Office’s Money Laundering and Transnational Criminal Enterprises Unit.  Assistant U.S. Attorneys Sarah Mortazavi, Benjamin Gianforti and T. Josiah Pertz 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.

Damian Williams, the United States Attorney for the Southern District of New York, announced that JOHNNY ROMAN was sentenced today to 20 years in prison for sexual exploitation of children and conspiring to sexually exploit children, including while incarcerated at the Metropolitan Detention Center in Brooklyn.  On May 23, 2023, ROMAN pled guilty to one count of sexual exploitation of children and two counts of conspiracy to commit sexual exploitation of a child before U.S. District Judge J. Paul Oetken, who imposed today’s sentence.

U.S. Attorney Damian Williams said: “Johnny Roman used multiple fake online personas to convince and, in some cases, threaten young women to create and send him heinous videos in which the women performed oral sex on minors, many of them infants and toddlers.  Once he was arrested and detained for that conduct, he continued his disturbing scheme from jail using contraband cellphones.  This lengthy prison sentence holds Roman accountable for his horrific crimes and the extraordinary harm and trauma he caused to many minor victims and their families.” 

According to the Indictment, court documents, and based on statements made in open court:

Since at least 2020, ROMAN used multiple fake online personas to contact young women about the prospect of a “job” sexting with an older man on encrypted messaging applications and to manipulate the women into creating disturbing pornographic videos in which they performed oral sex on minors, many of them infants or toddlers.  ROMAN communicated with at least 3,000 different women on one user account alone.  Through that broad outreach, at least eight individuals performed oral sex on minor victims based on ROMAN’s requests or threats.  At least 11 minor victims — ranging from 16 years old to four months old — were victims of ROMAN’s criminal conduct, which resulted in the creation of over 50 videos in which women performed oral sex on minors.

On December 22, 2020, ROMAN was arrested on the instant charges.  While detained, ROMAN continued to induce women to film themselves performing oral sex on minors using at least three contraband cellphones.

*                *                *

In addition to his prison term, ROMAN, 37, of Albany, New York, was sentenced to a lifetime of supervised release.

Mr. Williams praised the outstanding investigative work of Homeland Security Investigations and the New York City Police Department.  

The prosecution is being handled by the Office’s General Crimes Unit.  Assistant U.S. Attorney Rebecca T. Dell is in charge of the prosecution.

Damian Williams, the United States Attorney for the Southern District of New York, and Erin Keegan, the Acting Special Agent in Charge of the New York Field Office of Homeland Security Investigations (“HSI”), announced today the return of 13 Khmer antiquities to the Kingdom of Cambodia, pursuant to an agreement between the U.S. Attorney’s Office for the Southern District of New York and the Metropolitan Museum of Art (the “Met”).  The Met has voluntarily agreed to return the antiquities, and they are in the process of being turned over.  

U.S. Attorney Damian Williams said: “All of the pieces being returned today were tied directly to illicit trafficking, and specifically to a man named Douglas Latchford – a collector and dealer that my Office charged in 2019 for running a vast antiquities trafficking network out of Southeast Asia.  I want to thank the Metropolitan Museum of Art, where these pieces were previously housed, for their decision to cooperate and work with my Office to facilitate the return of these pieces to the Kingdom of Cambodia.  We look forward to our continued dialogue with the Met on these important issues.  My Office will continue to vigorously investigate the illegal trade in stolen antiquities.  We urge those in this space, including cultural institutions, to be vigilant.  And if you work at one of these institutions or for a private collection and have concerns that certain pieces may be tied to illicit trafficking, do the right thing: come forward and work with us on a voluntary basis to facilitate the return to the rightful owners.  That is a far better outcome for you and your institution than if our investigation leads to a knock on your door.  In other words, come see us before we come see you.” 

HSI Acting Special Agent in Charge Erin Keegan said: “As demonstrated with today's announcement, pieces linked to the investigation of Douglas Latchford continue to reveal themselves.  The Metropolitan Museum of Art has not only recognized the significance of these 13 Khmer artifacts, which were shamelessly stolen, but has also volunteered to return them, as part of their ongoing cooperation, to their rightful owners: the People of Cambodia.  I want to thank HSI New York’s Cultural Property, Art, and Antiquities unit and the Southern District of New York for their unwavering commitment to reuniting nations with these unforgettable pieces of history.”

All of the antiquities being returned to the Kingdom of Cambodia are linked to the art dealer and collector Douglas Latchford, who was previously indicted in the Southern District of New York in 2019 for orchestrating a multi-year scheme to sell looted Cambodian antiquities on the international art market.  The Indictment was later dismissed due to Latchford’s death.  Since 2012, the U.S. Attorney’s Office for the Southern District of New York, in partnership with HSI, has successfully investigated, identified, and repatriated dozens of stolen and illegally imported Cambodian antiquities in the possession of individuals and institutions in the United States. 

Among the statutes being returned to the Kingdom of Cambodia are statutes from the Koh Ker archaeological site, including a 10th century goddess sandstone statute, as depicted below.  The history of Koh Ker and the illicit trafficking in Cambodian cultural patrimony is described in prior forfeiture actions filed in the Southern District of New York, including United States v. A Late 12th Century Khmer Sandstone Sculpture Depicting Standing Prajnaparamita, et al., 21 Civ. 9217; United States v. A Late 12th Century Bayon-Style Sandstone Sculpture Depicting Eight-Armed Avalokiteshvara, 22 Civ. 229;  United States v. A 10th Century Cambodian Sandstone Sculpture, 12 Civ. 2600; and United States v. A 10th Century Cambodian Sandstone Sculpture Depicting Skanda on a Peacock, 21 Civ. 6065.  In September 2023, Koh Ker — the 10th Century former royal capital of the Angkorian empire — was officially added to the United Nations Education, Scientific, and Cultural Organization’s World Heritage List.  Other statutes being returned date from as far back as the 7th Century, including an over-life-size head of Buddha.   

10th century goddess sandstone statue from Koh Ker

7th century Head of Buddha

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Mr. Williams thanked HSI for its outstanding work to facilitate the repatriation and praised its ongoing efforts to find and repatriate stolen and looted cultural property.  Mr. Williams also thanked the Kingdom of Cambodia’s Ministry of Culture and Fine Arts for its partnership and assistance.

This matter is being handled by the Office’s Money Laundering and Transnational Criminal Enterprises Unit.  Assistant U. S. Attorney Shiva Logarajah is in charge of the case.    

Damian Williams, the United States Attorney for the Southern District of New York, announced today the unsealing of charges against TROY CARUSO, the owner and chief executive officer of a commercial construction and contracting company headquartered in New York, New York (the “Contracting Company”), and JOHN NOLAN, a senior executive at the Contracting Company, for their participation in a scheme to bribe a senior project manager at a Fortune 500 real estate services firm in order to obtain contracting work.  CARUSO was arrested this morning in Melville, New York, and NOLAN was arrested this morning in Brooklyn, New York.  Both CARUSO and NOLAN are expected to be presented in federal court in Manhattan later today. 

U.S. Attorney Damian Williams said: “As alleged, Troy Caruso and John Nolan bribed a senior-level individual at a Fortune 500 company to award their company favorable contracts, resulting in the parties involved fraudulently obtaining millions. In the construction world, fair bidding is crucial to the success or downfall of a business, and kickback schemes like the one we allege in this case can undermine that process. Those attempting to corrupt the bidding process by gaining an unfair advantage over their law-abiding counterparts will face criminal prosecution.”

According to the allegations in the Indictment:[1]

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

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

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

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

*                *                *

CARUSO, 56, of Smithtown, New York, and Ludlow, Vermont, and NOLAN, 42, of Brooklyn, New York, are each charged with one count of conspiracy to commit honest services wire fraud and one count of honest services wire fraud, which each 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 defendants would be determined by a judge.

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

This case is being handled by the Office’s Public Corruption Unit.  Assistant U.S. Attorneys Jane Kim and Nicholas Folly 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.

The U.S. Attorney’s Office for the Southern District of New York is providing notice to individuals and entities that bought and sold stock of Nikola Corporation (ticker NKLA) or VectoIQ (tickers VTIQU, VTIQ, and VTIQW) between March and September 2020 of the upcoming sentencing of TREVOR MILTON, the founder and former CEO of Nikola.  In October 2022, MILTON was convicted by a jury of securities fraud and wire fraud in connection with his scheme to defraud and mislead investors about the development of products and technology by Nikola. 

The sentencing is scheduled for December 18, 2023, at 11:00 a.m. before the Honorable Edgardo Ramos in Courtroom 619 at the Thurgood Marshall United States Courthouse, 40 Foley Square, New York, NY 10007.  The proceeding is open to the public.  MILTON faces a maximum term of 60 years in prison, and the sentence will be determined by the court.  If you believe you are a victim of TREVOR MILTON and have questions about the sentencing or wish to submit a victim impact statement, please email: [email protected].

A former Special Agent in Charge (SAC) of the FBI Counterintelligence Division in New York, was sentenced to 50 months in prison and ordered to pay a $40,000 fine for conspiring to violate the International Emergency Economic Powers Act (IEEPA) and to commit money laundering in connection with his 2021 agreement to provide services to Oleg Deripaska, a sanctioned Russian oligarch.

According to court documents and statements made in court proceedings, Charles McGonigal, 55, of New York, New York, pleaded guilty in August.

“Charles McGonigal helped advance the interests of a sanctioned Russian oligarch, breaking his oath to safeguard our nation and uphold its laws,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “Today’s sentence holds him accountable for this betrayal and demonstrate this department’s commitment to deny designated individuals the means to circumvent U.S. sanctions.”

“Charles McGonigal violated the trust his country placed in him by using his high-level position at the FBI to prepare for his future in business,” said U.S. Attorney Damian Williams for the Southern District of New York. “Once he left public service, he jeopardized our national security by providing services to Oleg Deripaska, a Russian tycoon who acts as Vladimir Putin’s agent.  Today’s sentence is a reminder that anyone who violates United States sanctions — particularly those in whom this country has placed its trust — will pay a heavy penalty.”

“Charles McGonigal’s conduct can be summed up in one word – betrayal. He betrayed everything he once swore to protect.” said Executive Assistant Director Larissa L. Knapp of the National Security Branch. “Today’s sentencing is a message to all, no matter who they are, the FBI does not tolerate those who choose to jeopardize US National Security. Prioritizing personal gains over one’s oath to protect the American people and uphold the Constitution, will be prosecuted to the full extent of the law.”

In 2014, the President issued Executive Order 13660, which declared a national emergency with respect to the situation in Ukraine. To address this national emergency, the President blocked all property of individuals determined by the U.S. Treasury to be responsible for or complicit in actions or policies that threatened the security, sovereignty, or territorial integrity of Ukraine, or who materially assist, sponsor, or provide support to individuals or entities engaging in such activities. Executive Order 13660 and regulations issued pursuant to it prohibit providing or receiving any funds, goods, or services by, to, from, or for the benefit of any person designated by the U.S. Treasury.

On April 6, 2018, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) designated Oleg Deripaska as a Specially Designated National in connection with its finding that the actions of the Government of the Russian Federation with respect to Ukraine constitute an unusual and extraordinary threat to U.S. national security and foreign policy.  According to the U.S. Treasury, Deripaska was sanctioned for having acted or purported to act on behalf of, directly or indirectly, a senior official of the Government of the Russian Federation and for operating in the energy sector of the Russian Federation economy. The U.S. District Court for the District of Columbia affirmed the sanctions against Deripaska. It found, among other things, that OFAC’s determination that Deripaska acted as an agent of Russian President Vladimir Putin was supported by the evidence.

As an FBI official, McGonigal helped investigate Deripaska and other Russian oligarchs. As a SAC, he supervised investigations into sanctions violations. Yet at the same time, he began building a relationship with an agent of Deripaska, in the hopes of doing business with Deripaska after he retired from the FBI.

In 2021, McGonigal conspired to provide services to Deripaska, in violation of U.S. sanctions imposed on Deripaska in 2018. Specifically, following his negotiations with Deripaska’s agent, McGonigal agreed to and did investigate a rival Russian oligarch in return for concealed payments from Deripaska. While negotiating and performing services for Deripaska, McGonigal and the agent attempted to conceal Deripaska’s involvement by, among other means, not directly naming Deripaska in electronic communications, using shell companies as counterparties in the contract that outlined the services to be performed, using a forged signature on that contract, and using the same shell companies to send and receive payment from Deripaska. McGonigal hoped to do millions of dollars in business with Deripaska, but FBI agents from the same division McGonigal used to lead foiled his scheme after only a few months of operation.

The FBI New York Field Office’s Counterintelligence Division investigated the case, with valuable assistance from U.S. Customs and Border Protection as well as the New York City Police Department.  

Assistant U.S. Attorneys Hagan Scotten, Rebecca T. Dell, and Derek Wikstrom for the Southern District of New York are prosecuting the case, with assistance from Trial Attorney Christina A. Clark of the National Security Division’s Counterintelligence and Export Control Section.

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 Matthew G. Olsen, the Assistant Attorney General of the Justice Department’s National Security Division, announced today that CHARLES MCGONIGAL, a former Special Agent in Charge (“SAC”) of the FBI’s Counterintelligence Division in New York, was sentenced by U.S. District Judge Jennifer H. Rearden to 50 months in prison for conspiring to violate the International Emergency Economic Powers Act and to commit money laundering in connection with his 2021 agreement to provide services to Oleg Deripaska, a sanctioned Russian oligarch.

U.S. Attorney Damian Williams said: “Charles McGonigal violated the trust his country placed in him by using his high-level position at the FBI to prepare for his future in business.  Once he left public service, he jeopardized our national security by providing services to Oleg Deripaska, a Russian tycoon who acts as Vladimir Putin’s agent.  Today’s sentence is a reminder that anyone who violates United States sanctions — particularly those in whom this country has placed its trust — will pay a heavy penalty.”

Assistant Director in Charge James Smith said: “Charles McGonigal was justly punished today for knowingly aiding the agents of foreign adversaries who targeted the United States through his fraud and deception to satisfy his own greed.  The FBI is determined to ensure any individual who commits federal crimes – even a former FBI Special Agent in Charge – is held accountable to face the consequences.  This sentence marks not only an important outcome by the U.S. justice system, but also reflects the dedication of the men and women of the FBI to investigate crimes, regardless of who commits them.”

Assistant Attorney General Matthew G. Olsen said: “Charles McGonigal helped advance the interests of a sanctioned Russian oligarch, breaking his oath to safeguard our nation and uphold its laws.  Today's sentence holds him accountable for this betrayal and demonstrates this department’s commitment to deny designated individuals the means to circumvent U.S. sanctions.”           

According to publicly filed court documents and statements made in court proceedings:

In 2014, the President issued Executive Order 13660, which declared a national emergency with respect to the situation in Ukraine.  To address this national emergency, the President blocked all property of individuals determined by the U.S. Treasury to be responsible for or complicit in actions or policies that threatened the security, sovereignty, or territorial integrity of Ukraine, or who materially assist, sponsor, or provide support to individuals or entities engaging in such activities.  Executive Order 13660 and regulations issued pursuant to it prohibit providing or receiving any funds, goods, or services by, to, from, or for the benefit of any person designated by the U.S. Treasury.

On April 6, 2018, the U.S. Department of the Treasury’s Office of Foreign Assets Control (“OFAC”) designated Oleg Deripaska as a Specially Designated National in connection with its finding that the actions of the Government of the Russian Federation with respect to Ukraine constitute an unusual and extraordinary threat to U.S. national security and foreign policy.  According to the U.S. Treasury, Deripaska was sanctioned for having acted or purported to act on behalf of, directly or indirectly, a senior official of the Government of the Russian Federation and for operating in the energy sector of the Russian Federation economy.  The U.S. District Court for the District of Columbia affirmed the sanctions against Deripaska.  It found, among other things, that OFAC’s determination that Deripaska acted as an agent of Russian President Vladimir Putin was supported by the evidence.

As an FBI official, MCGONIGAL helped investigate Deripaska and other Russian oligarchs.  As an SAC, he supervised investigations into sanctions violations.  Yet at the same time, he began building a relationship with an agent of Deripaska, in the hopes of doing business with Deripaska after he retired from the FBI.

In 2021, MCGONIGAL conspired to provide services to Deripaska, in violation of U.S. sanctions imposed on Deripaska in 2018.  Specifically, following his negotiations with Deripaska’s agent, MCGONIGAL agreed to and did investigate a rival Russian oligarch in return for concealed payments from Deripaska.  While negotiating and performing services for Deripaska, MCGONIGAL and the agent attempted to conceal Deripaska’s involvement by, among other means, not directly naming Deripaska in electronic communications, using shell companies as counterparties in the contract that outlined the services to be performed, using a forged signature on that contract, and using the same shell companies to send and receive payment from Deripaska.  MCGONIGAL hoped to do millions of dollars in business with Deripaska, but FBI agents from the same division MCGONIGAL used to lead foiled his scheme after only a few months of operation.

*                *                *

In addition to the prison sentence, MCGONIGAL, 55, of New York, New York, was ordered to pay a fine of $40,000, to forfeit $17,500, and sentenced to three years of supervised release.

Mr. Williams praised the outstanding work of the FBI New York Field Office’s Counterintelligence Division and the valuable assistance from U.S. Customs and Border Protection as well as the New York City Police Department.   

The case is being prosecuted by the Office’s Public Corruption Unit.  Assistant U.S. Attorneys Hagan Scotten, Rebecca T. Dell, and Derek Wikstrom are in charge of the prosecution with assistance from Trial Attorney Christina A. Clark of the National Security Division’s Counterintelligence and Export Control Section.

Damian Williams, the United States Attorney for the Southern District of New York, announced the guilty plea today of SHAKEEB AHMED in connection with his hack of two separate decentralized cryptocurrency exchanges, one of which was the July 2022 hack of Nirvana Finance.  AHMED pled guilty to computer fraud before U.S. Magistrate Judge Ona T. Wang.  AHMED also agreed to forfeit over $12.3 million, including forfeiture of approximately $5.6 million in fraudulently obtained cryptocurrency.

U.S. Attorney Damian Williams said: “Five months ago, my Office announced the first ever arrest involving an attack on a smart contract.  Today, senior security engineer Shakeeb Ahmed pled guilty and agreed to return all of the stolen crypto to his victims. That arrest is now the first ever conviction for such a hack.  Ahmed’s plea has also resulted in him further admitting that he carried out a previously unsolved second multi-million-dollar hack, this time of decentralized finance protocol Nirvana Finance.  In total, Ahmed used his technical knowhow to steal over $12 million and tried to cover his tracks by swapping stolen crypto for Monero, using cryptocurrency mixers, hopping across blockchains, and utilizing overseas crypto exchanges.  Today’s conviction shows that no matter how sophisticated the methods used, fraud is fraud, and we will swiftly catch and convict you.”

According to the charging documents and other filings and statements made in court:

In July 2022, AHMED executed hacks on two separate decentralized cryptocurrency exchanges, an exchange referred to herein as the “Crypto Exchange” and Nirvana Finance (“Nirvana”).  In July 2023, AHMED was publicly charged with the hack of the Crypto Exchange. Today’s guilty plea is the first public filing acknowledging AHMED’s responsibility for a second sophisticated, multi-million dollar hack he executed in July 2022 of Nirvana.

At the time of both attacks, AHMED, a U.S. citizen, was a senior security engineer for an international technology company whose resume reflected skills in, among other things, reverse engineering smart contracts and blockchain audits, which are some of the specialized skills AHMED used to execute the hacks.  

The Crypto Exchange allowed users to exchange different kinds of cryptocurrencies, and paid fees to users who deposited cryptocurrency to provide liquidity on the Crypto Exchange.

On or about July 2 and 3, 2022, AHMED carried out an attack on the Crypto Exchange by exploiting a vulnerability in one of the Crypto Exchange’s smart contracts and inserting fake pricing data to fraudulently cause that smart contract to generate approximately $9 million dollars’ worth of inflated fees that AHMED did not legitimately earn. AHMED was able to withdraw said fees from the Crypto Exchange in the form of cryptocurrency.  This conduct defrauded the Crypto Exchange and its users whose cryptocurrency AHMED had fraudulently obtained.  

After he stole the fees he never legitimately earned, AHMED had communications with the Crypto Exchange in which he agreed to return all of the stolen funds except for $1.5 million if the Crypto Exchange agreed not to refer the attack to law enforcement.  

Nirvana was a second decentralized finance protocol.  Nirvana bought and sold its cryptocurrency token, ANA.  Nirvana was designed so that when a user purchased a substantial quantity of ANA, the price of ANA increased, and when a user sold a substantial quantity of ANA, the price of ANA decreased.

On or about July 28, 2022, a few weeks after the hack of the Crypto Exchange, AHMED carried out an attack on Nirvana in which he took out a flash loan for approximately $10 million, used those funds to purchase ANA from Nirvana, and used an exploit he discovered in Nirvana’s smart contracts to purchase the ANA at its initial, low price, rather than at the higher price that Nirvana was designed to charge him in light of the size of his purchase.  When the price of ANA updated to reflect his large purchase, AHMED resold the ANA he had purchased to Nirvana at the new, higher price, resulting in a profit to him of approximately $3.6 million.  Nirvana offered AHMED a “bug bounty” of as much as $600,000 to return the stolen funds, but AHMED instead demanded $1.4 million, did not reach agreement with Nirvana, and kept all the stolen funds.  The $3.6 million AHMED stole represented approximately all the funds possessed by Nirvana, which as a result shut down shortly after AHMED’s attack.

AHMED laundered the millions that he stole from the Crypto Exchange and from Nirvana to conceal their source and ownership, using sophisticated techniques including token-swap transactions, “bridging” fraud proceeds from the Solana blockchain over to the Ethereum blockchain, exchanging fraud proceeds into Monero, an anonymized and particularly difficult cryptocurrency to trace, using overseas cryptocurrency exchanges, and using cryptocurrency mixers such as Samourai Whirlpool.

After the attacks, AHMED searched online for information about the hacks, his own criminal liability, criminal defense attorneys with expertise in similar cases, law enforcement’s ability to successfully investigate the attacks, and fleeing the U.S. to avoid criminal charges.  For example, approximately two days after the hack of the Crypto Exchange, AHMED conducted an internet search for the term “defi hack,” read several news articles about the hack of the Crypto Exchange, and visited several pages on the Crypto Exchange’s website.  In the days after the hack of Nirvana, AHMED conducted internet searches for the term “defi hacks prosecution” and searches related to the charges in the Indictment, including the terms “wire fraud” and “evidence laundering.”  Finally, AHMED conducted internet searches or visited websites related to his ability to flee the U.S., avoid extradition, and keep his stolen cryptocurrency.  He searched for the terms “can I cross border with crypto,” “how to stop federal government from seizing assets,” and “buying citizenship.” He also visited a website titled “16 Countries Where Your Investments Can Buy Citizenship . . .”

*                *                *

AHMED, 34, of New York, New York, pled guilty to one count of computer fraud, which carries a maximum sentence of five years in prison.  AHMED also agreed to pay restitution to his victims totaling $5,071,074.23. 

The maximum potential sentence is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.   AHMED is scheduled to be sentenced by United States District Judge Victor Marrero on March 13, 2024.

Mr. Williams praised the outstanding work of Homeland Security Investigations and Internal Revenue Service – Criminal Investigation.  Mr. Williams also thanked the U.S. Attorney’s Office for the Southern District of California for its assistance in the investigation.

The case is being prosecuted by the Office’s Money Laundering & Transnational Criminal Enterprises Unit and Complex Frauds & Cybercrime Unit. Assistant U.S. Attorneys David R. Felton and Kevin Mead are in charge of the prosecution.

Damian Williams, the United States Attorney for the Southern District of New York, announced that ISMAEL BIMBOW was sentenced to 22 years in prison today for his participation in a large-scale narcotics trafficking operation that sold kilogram quantities of fentanyl and heroin and for possessing firearms to protect the drug operation.  BIMBOW was convicted following a week-long jury trial in April 2022 before U.S. District Judge J. Paul Oetken, who imposed today’s sentence. 

U.S. Attorney Damian Williams said: “The sentence today reaffirms this Office’s commitment to hold large-scale fentanyl traffickers accountable.  Armed fentanyl traffickers such as this defendant promote violence, ruin lives, and destroy communities.  This defendant sought to profit from trafficking significant quantities of this horrific drug, used multiple firearms to protect his operation, and profited handsomely, but he has now been justly punished for his crimes and will spend many years in federal prison.”

According to court documents and the evidence presented at the trial of BIMBOW:

BIMBOW and his co-conspirators ran a large-scale wholesale fentanyl operation out of numerous residences in New Jersey, while obtaining drug supplies and enlisting co-conspirators to “bag up” for him in the Southern District of New York.  BIMBOW also obtained and kept multiple loaded firearms to protect his drugs and drug supplies. 

On December 8, 2020, following a months-long investigation into his narcotics trafficking operation, BIMBOW was arrested outside of his stash house in East Orange, New Jersey.  Law enforcement agents then searched the vehicle that he was in and recovered a semi-automatic handgun, bundled U.S. currency, and several bundles of fentanyl hidden in the car’s secret compartment, a photograph of which is below:

Officers then searched BIMBOW’s stash house and multiple luxury apartments and residences and recovered large quantities of fentanyl and heroin — including over 50,000 individually packaged doses of fentanyl ready to be distributed into the community — as well as more bricks of fentanyl and equipment used to weigh, package, stamp, and sell fentanyl on the street.  Photographs of the over 50,000 doses of fentanyl recovered at the stash house are below:

During the search of BIMBOW’s three luxury apartments throughout northern New Jersey, agents located two additional firearms (including one with an extended magazine) and more fentanyl in one, a gold digital money counter in another, and over $450,000 in narcotics proceeds in the third.  A photograph on BIMBOW’s phone showed that same money counter surrounded by cash.  Photographs of the seized firearms, some of the seized cash, and the money counter from BIMBOW’s phone are below:  

BIMBOW used his massive profits from fentanyl dealing to obtain numerous luxury vehicles, live in his multiple luxury apartments, invest in a club, and show off his earnings.  For example, evidence from BIMBOW’s phone showed him taking a video of hundreds of thousands of dollars in the very apartment in which it was seized in an apparent attempt to boast about his criminal proceeds, a screenshot of which is below:

BIMBOW’s phone also contained photographs of at least four additional kilograms of fentanyl, two photos of which are shown below:  

Even after BIMBOW was arrested and detained, he continued to traffic fentanyl through the use of multiple contraband phones, which agents seized from his jail cell.  Evidence from those devices showed that BIMBOW continued his attempts to sell large quantities of dangerous fentanyl both before and even after he was convicted at trial in this matter.

*                *                *

ISMAEL BIMBOW, 46, of Newark, New Jersey, was convicted after trial of narcotics conspiracy and using and carrying firearms during and in relation to, or possessing firearms in furtherance of, the narcotics conspiracy.  In addition to the prison term, Judge Oetken sentenced BIMBOW to five years of supervised release.

Mr. Williams praised the outstanding investigative work of the Drug Enforcement Administration. 

The prosecution of this case is being handled by the Office’s Narcotics Unit.  Assistant U.S. Attorneys Michael R. Herman, David J. Robles, and Frank J. Balsamello are in charge of the prosecution.

Damian Williams, the United States Attorney for the Southern District of New York, Naomi Gruchacz, the Special Agent in Charge of the New York Regional Office of the U.S. Department of Health and Human Services – Office of the Inspector General (“HHS-OIG”), Erin Keegan, the Acting Special Agent in Charge of the New York Field Office of Homeland Security Investigations (“HSI”), and Thomas Fattorusso, the Special Agent in Charge of the New York Field Office of the Internal Revenue Service, Criminal Investigation (“IRS-CI”), announced the unsealing of an Indictment today charging NIRANJAN MITTAL, a Brooklyn-based cardiologist, in connection with a scheme to fabricate patient records, pay physicians for patient referrals, and bill for medically unnecessary vascular procedures.  The U.S. Attorney’s Office for the Southern District of New York also filed a civil fraud complaint today under the False Claims Act against MITTAL, DIVANSHU BANSAL, who manages MITTAL’s medical practice and supervises staff, and NIRANJAN K. MITTAL, PHYSICIAN, PLLC d/b/a/ CARECUBE, and NEW YORK PET IMAGING CENTER LLC, the entities that own MITTAL’s practice and diagnostic testing facility.  MITTAL was presented in federal court before U.S. Magistrate Judge Ona T. Wang.  The case is assigned to U.S. District Judge Ronnie Abrams.

U.S. Attorney Damian Williams said: “We put our faith in doctors and trust their expertise.  As alleged, Dr. Niranjan Mittal betrayed that trust.  He subjected patients to surgical procedures that they did not need.  He directed his staff to make up patient symptoms in medical records to justify these unnecessary procedures so he could receive lucrative insurance payments, and he bribed other doctors to send him their patients.  Thanks to our law enforcement partners, Mittal now faces criminal prosecution and civil penalties for his alleged conduct.”

HHS-OIG Special Agent in Charge Naomi Gruchacz said: “Health care providers who falsify records and recommend medically unnecessary services to drive up profits pose a significant risk to patients.  HHS-OIG will continue to work with our law enforcement partners to hold accountable individuals who, to satisfy their own greed, exploit federal health care programs.”

HSI Acting Special Agent in Charge Erin Keegan said: “Niranjan Mittal is accused of defrauding the government and private insurers of millions of dollars while treating his patients like commodities he could use to further enrich himself. He put profit over patient well-being, convincing individuals who sought his care to undergo potentially unnecessary medical procedures.  Through partnerships, such as those established within HSI's Document and Benefits Fraud Task Force, we are actively raising awareness among the public and deterring those who aim to exploit the vulnerable.” 

IRS-CI Special Agent in Charge Thomas Fattorusso said: “While Dr. Mittal may have taken the Hippocratic Oath when he became a doctor, the irony is not lost on the hypocrisy of his alleged fraud, where instead of caring for his patients, he cared for himself and lining his own pockets.  Mittal’s alleged schemes were devoid of concern for his patients, and his practice to treat certain patients with unnecessary procedures is outright dangerous.  Today’s arrest ensures that he will no longer be able to continue his fraud and victimize those who sought legitimate care and treatment.”

According to the Indictment:[1]

Since at least 2016, MITTAL operated a medical clinic in Brooklyn, New York (the “Brooklyn Clinic”), with a patient base consisting of many individuals of limited economic means who were insured by government health care programs.  In order to ensure a steady flow of new patients to the Brooklyn Clinic, MITTAL paid rental payments to other providers pursuant to purported “leases” for office space.  Often, however, the timing and amount of the payments bore no relation to the terms of those leases.  In fact, MITTAL made the purported lease payments to induce other providers to refer patients to MITTAL’s staff members, who, at the direction of MITTAL, periodically traveled to the providers’ offices, performed basic tests on the referred patients, and convinced the patients to attend follow-up appointments at the Brooklyn Clinic.

Once patients arrived at the Brooklyn Clinic, often without understanding why they had been referred to the practice, they underwent a series of diagnostic tests and follow-up office visits.  These tests and office visits generally were not based on the patients’ actual treatment needs.  Rather, MITTAL and others acting at his direction ordered these tests and office visits to create documentation sufficient to justify subjecting patients to unnecessary peripheral vascular interventional procedures—surgical procedures focused on clearing purported blockages in the blood vessels in patients’ legs.  MITTAL directed others to, among other things, fabricate the descriptions of patients’ symptoms recorded in the practice’s office visit notes, varying the symptoms across patients so that it was not apparent that the symptoms were fake.

As a result of MITTAL’s scheme, patients at the Brooklyn Clinic, many of whom were already in poor health, routinely underwent medically unnecessary vascular interventions at MITTAL’s office, with some patients undergoing ten or more interventional procedures over the course of several years.  The patients’ conditions often did not improve, despite these repeated interventions.  Through his operating entity, MITTAL billed Medicare, Medicaid, and private insurers over $100 million for the relevant vascular procedures.

According to the Civil Complaint: [2]

In addition to fraudulently billing Medicare and Medicaid for medically unnecessary peripheral vascular procedures, fabricating patient records to make it appear these procedures were justified, and paying kickbacks for patient referrals:

MITTAL, BANSAL, and MITTAL’s operating entities billed Medicare and Medicaid for medically unnecessary cardiac diagnostic imaging studies, including but not limited to PET scans, stress tests, echocardiograms, and carotid artery doppler studies.  These tests were repeatedly performed on the same patients without any clinical basis and without taking into account the results of prior, duplicative tests.  At the direction of MITTAL and BANSAL, staff prepared fabricated medical records to make it appear that patients exhibited symptoms and complaints that would justify performing these tests.  The lawsuit seeks to recover treble damages and civil penalties under the False Claims Act.

*                *                *

MITTAL, 70, of Brooklyn, New York, is charged with one count of conspiracy to commit health care fraud and wire fraud, which carries a maximum sentence of 20 years in prison, one count of health care fraud, which carries a maximum sentence of ten years in prison, one count of conspiracy to violate the Anti-Kickback Statute, which carries a maximum sentence of five years in prison, and one count of violation of the Anti-Kickback Statute, which carries a maximum sentence of 10 years in prison. 

The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.

Mr. Williams praised the outstanding investigative work of HHS-OIG, HSI, and IRS-CI.

The criminal case is being handled by the Office’s Complex Frauds and Cybercrime Unit.  Assistant U.S. Attorneys Patrick R. Moroney and Matthew Weinberg are in charge of the prosecution.  The civil lawsuit is being handled by the Office’s Civil Frauds Unit.  Assistant U.S. Attorneys Jeffrey K. Powell and Pierre G. Armand are in charge of the civil case.

The charges contained in the Indictment are merely allegations, and the defendant is presumed innocent unless and until proven guilty.

If you or someone you know has information about the conduct at MITTAL’s cardiology practice, please call the HHS-OIG tip line at 1-800-HHS-TIPS.

[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.

[2] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth herein constitute only allegations, and every fact described should be treated as an allegation.

Damian Williams, the United States Attorney for the Southern District of New York, announced today that a jury returned a guilty verdict against NADINE JAZIMNE WADE on all four counts in the Indictment, which contained money laundering and bank fraud charges.  The defendant was found guilty following a two-week trial before U.S. District Judge Katherine Polk Failla.

U.S. Attorney Damian Williams said: “Nadine Wade used a sham women’s clothing company as a front to launder over $2 million in fraud proceeds on behalf of scam artists in Nigeria and South Africa.  The romance scams perpetrated by Wade’s partners were cruel, targeting vulnerable, elderly men and women and tricking them into transferring their life savings to the defendant, who then took her cut and sent the money to other members of the scheme.  Money launderers who assist online scammers abroad will be held accountable for their crimes by this Office.”

According to the Indictment, statements made in public court proceedings and filings, and the evidence at trial:

From in or about 2016 through in or about 2021, co-conspirators of WADE based in Nigeria and South Africa committed a series of romance scams against individuals located across the United States.  Those co-conspirators used aliases, including the names “Diego Francisco” and “Richard Francisco” (the “Francisco Alias”), to meet victims on various dating websites.  The co-conspirators used online photographs of a male model when providing victims with photos of the Francisco Alias.  After engaging in romantic conversations with the victims via phone, text, and email, those co-conspirators, posing as the Francisco Alias, asked victims for money.  The reasons why the Francisco Alias needed money varied.  In one version of the scheme, the Francisco Alias supposedly worked on an oil rig and needed funds to repair the rig.  The Francisco Alias then instructed the victims to transfer funds to bank accounts controlled by WADE and others.  The means of transfer also varied.  In some cases, for example, the Francisco Alias instructed victims to obtain cashier’s checks made payable to WADE or her shell company and to mail those checks to WADE.

WADE received fraud proceeds from victims of the Francisco Alias in personal bank accounts and business bank accounts for her shell company Royal Treasure Chest LLC, a company purportedly involved in, among other things, the sale of women’s clothing and accessories.  Once WADE received fraud proceeds, she rapidly depleted her bank accounts of those funds through cash withdrawals, cashier’s checks, and the purchase of vehicles, among other means.  After taking her own cut of the money, WADE transferred the bulk of the funds to other members of the scheme.  

From in or about 2016 through in or about 2021, WADE controlled more than 18 bank accounts that had deposits totaling over $2 million.  Most of those deposits consisted of wire transfers and check or cash deposits from U.S.-based individuals who were victims of the romance fraud scam described above.  

*                *                *

NADINE JAZMINE WADE, 30, of the Bronx, New York, was convicted of one count of conspiracy to commit money laundering, which carries a maximum sentence of 20 years in prison; one count of money laundering, which carries a maximum sentence of 20 years in prison; one count of conspiracy to commit bank fraud, which carries a maximum sentence of 30 years in prison; and one count of bank fraud, which carries a maximum sentence of 30 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 would be determined by a judge.

Mr. Williams praised the outstanding work of the U.S. Secret Service and the Internal Revenue Service – Criminal Investigation for their assistance in this investigation.

This case is being handled by the Office’s General Crimes Unit.  Assistant U.S. Attorneys Micah F. Fergenson, Matthew J. King, and Dina McLeod are in charge of the prosecution, with assistance from Paralegal Specialist Jayda Foote.

Damian Williams, the United States Attorney for the Southern District of New York, and Anne Milgram, the Administrator of the U.S. Drug Enforcement Administration (“DEA”), announced that a jury returned a guilty verdict against CARLOS ORENSE AZOCAR yesterday on all three counts in the Indictment, which contained cocaine-importation and weapons charges.  The defendant was found guilty following a two-week trial before U.S. District Judge Vernon S. Broderick.

U.S. Attorney Damian Williams said: “For more than a decade, Carlos Orense Azocar worked with some of the largest narcotics traffickers in the world to send tons of cocaine to the United States.  He partnered with corrupt high-ranking government and military officials in Venezuela and employed an arsenal of high-powered weapons to protect his cocaine distribution organization.  For years, Orense Azocar shipped mountains of poison to this country and made millions of dollars in drug money.  But no more.  A jury in this district has unanimously held Orense Azocar responsible for his crimes, and now he will face a possible life sentence behind bars.” 

DEA Administrator Anne Milgram said: “Orense Azocar and his drug trafficking organization used every means available, including high-powered weaponry, government corruption, and bribery, to safeguard his expansive operation and traffic hundreds of tons of cocaine into the United States.  Today’s verdict is another example of the dangerous and vital work DEA does every day across the globe and our relentless pursuit of justice for those responsible for causing harm to the American people.”

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

Beginning in or about 2003, ORENSE AZOCAR and his drug trafficking organization distributed tons of cocaine destined for importation into the United States.  ORENSE AZOCAR helped transport, receive, and distribute loads of cocaine ranging from hundreds to thousands of kilograms from Venezuela to Mexico, the Dominican Republic, and elsewhere, using air and maritime routes.  ORENSE AZOCAR operated fincas, or ranches, in Venezuela, where he stored his cocaine in underground tanks, stored hundreds of deadly weapons and thousands of rounds of ammunition, and which had clandestine landing strips from which he dispatched airplanes loaded with cocaine.  ORENSE AZOCAR also loaded cocaine on “go-fast” boats that sped from the Venezuelan coastline to intermediate delivery points in the Caribbean, including the Dominican Republic and close to Puerto Rico.  To aid in his cocaine distribution, ORENSE AZOCAR worked with and paid bribes to high-ranking officials throughout the Venezuelan government, including military generals and army officials, national police commissioners, and high-ranking officials in the Venezuelan intelligence agencies.  ORENSE AZOCAR’s corrupt Venezuelan government connections secured access to military-grade weaponry, protection from military and law enforcement raids, safe passage for ORENSE AZOCAR’s cocaine convoys through checkpoints, and fraudulent airplane transponder codes to permit ORENSE AZOCAR’s cocaine-laden aircraft to freely depart Venezuela en route to Central America and Mexico.  ORENSE AZOCAR similarly partnered with armed guerilla forces operating in Colombia and Venezuela to source cocaine and secure safe passage for his cocaine shipments.  ORENSE AZOCAR distributed hundreds of tons of cocaine and made tens of millions of dollars through his narcotics trafficking.

To protect and expand his cocaine trafficking organization, ORENSE AZOCAR employed high-powered weaponry.  He had armed security teams that guarded his finca; traveled in armored vehicles with armed security; and used armed security, military forces, and police to protect his convoys of cocaine.  Among other weapons, ORENSE AZOCAR employed automatic rifles, submachine guns, handguns modified to operate as machine guns, and a 50-caliber mounted machine gun. 

*                *                *

ORENSE AZOCAR, 68, of Venezuela, was convicted on three counts: (i) conspiring to import cocaine into the United States, which carries a mandatory minimum sentence of 10 years in prison and a maximum potential sentence of life in prison; (ii) using and carrying machine guns during, and possessing machine guns in furtherance of, the cocaine-importation conspiracy, which carries a mandatory consecutive minimum sentence of 30 years in prison and maximum potential sentence of life in prison; and (iii) conspiring to use and carry machine guns during, and to possess machine guns in furtherance of, the cocaine-importation conspiracy, which carries a maximum potential sentence of life in prison.

The minimum and maximum potential sentences are prescribed by Congress and are provided here for information 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 Force (“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.

Mr. Williams praised the outstanding efforts of the DEA’s Special Operations Division Bilateral Investigations Unit, OCDETF New York Strike Force, and SDNY Digital Forensics Unit, as well as the U.S. Department of Justice’s Office of International Affairs.

This case is being handled by the Office’s National Security and International Narcotics Unit.  Assistant U.S. Attorneys Kaylan E. Lasky, Michael D. Lockard, and Kevin Sullivan are in charge of the prosecution, with assistance from Paralegal Specialist William Sirmon.

Damian Williams, the United States Attorney for the Southern District of New York, and Nicole M. Argentieri, the Acting Assistant Attorney General of the Justice Department’s Criminal Division, announced today that the Madoff Victim Fund (“MVF”) began its ninth distribution of approximately $158 million in funds forfeited to the U.S. Government in connection with the Bernard L. Madoff Investment Securities LLC (“BLMIS”) fraud scheme.

In this distribution, payments will be sent to 24,875 victims across the globe, bringing their total recoveries to 91% of their fraud losses.  Through its nine distributions, MVF has paid over $4.22 billion to 40,843 victims as compensation for losses they suffered from the collapse of BLMIS.

U.S. Attorney Damian Williams said: “In 2009, when the Southern District of New York charged Bernie Madoff for his $64 billion securities fraud ‘Ponzi’ scheme, it was one of the most prolific financial crimes in American history.  Among Madoff’s many victims were not only wealthy and institutional investors, but charities and pension funds alike – some of which invested money with Madoff on behalf of individuals working paycheck-to-paycheck who were relying on their pension accounts for their retirements.  The financial toll on those who entrusted their money with Madoff was devasting, and this Office’s unprecedented efforts to return money to Madoff’s victims has now resulted in clawbacks of 91% of fraud losses to their rightful owners.  I commend the career prosecutors of this Office for today’s distribution of over $158 million and for their relentless pursuit of justice for victims of Wall Street fraudsters, like Bernie Madoff.”

Acting Assistant Attorney General Nicole M. Argentieri said: “The department’s Madoff Victim Fund has exceeded expectations in the level of recovery provided to victims of the fraud committed by Bernard Madoff, which devastated thousands of lives.  To date, the Madoff Victim Fund has assisted more than 40,800 individual victims in recovering over 90% of victim losses.  The department continues to prioritize the use of civil asset forfeiture to ensure compensation is available for victims of fraud.” 

According to court documents and information presented in related proceedings:

For decades, BERNARD L. MADOFF used his position as chairman of BLMIS, the investment advisory business he founded in 1960, to steal billions of dollars from his clients.  On March 12, 2009, MADOFF pled guilty to 11 federal felonies, admitting that he had turned his wealth management business into the world’s largest Ponzi scheme, benefitting himself, his family, and select members of his inner circle.

On June 29, 2009, MADOFF was sentenced to 150 years in prison for running the largest fraudulent scheme in history.  Of the over $4 billion that has been made available to victims, approximately $2.2 billion was collected as part of the historic civil forfeiture recovery from the estate of deceased MADOFF investor, Jeffry Picower.  An additional $1.7 billion was collected as part of a deferred prosecution agreement with JPMorgan Chase Bank N.A. and civilly forfeited in a parallel action.  The remaining funds were collected through a civil forfeiture action against investor Carl Shapiro and his family and from civil and criminal forfeiture actions against MADOFF, Peter B. Madoff, and their co-conspirators.

*                *                *

The MVF’s payouts would not have been possible without the extraordinary efforts of the U.S. Attorney’s Office for the Southern District of New York, the Criminal Division’s Money Laundering and Asset Recovery Section, and the Federal Bureau of Investigation in the prosecution of MADOFF’s crimes and the recovery of assets supporting the forfeiture in the case.

The MVF is overseen by Richard Breeden, former chairman of the U.S. Securities and Exchange Commission, who serves as Special Master appointed by the Justice Department to assist in connection with the victim remission proceedings.  Breeden and his team at MVF provided essential assistance to evaluate over 68,000 remission petitions involving billions in cash flows and to compute each victim’s fraud losses to enable payments to be made.

The case is being handled by the Office’s Money Laundering and Transnational Criminal Enterprises Unit.  The remission of these forfeited funds is being handled by the Office and the U.S. Department of Justice Criminal Division’s Money Laundering and Asset Recovery Section.

More information about MVF and its compensation of BLMIS is available on the MVF website at www.madoffvictimfund.com, such as eligibility criteria, process updates, and frequently asked questions.  Further questions may be directed to the MVF at 866-624-3670 or [email protected].

Damian Williams, the United States Attorney for the Southern District of New York, and Edward A. Caban, the Commissioner of the New York City Police Department (“NYPD”), announced today that a grand jury in Manhattan federal court returned an eight-count Indictment charging New Jersey resident HERMAN CALVIN BRIGHTMAN, a/k/a “Nazir Griffiths,” a/k/a “Nazir Luckett,” with kidnapping, interstate travel to commit domestic violence, interstate communication of a threat, cyberstalking, and interstate stalking.  BRIGHTMAN’s case is assigned to U.S. District Judge John P. Cronan. 

U.S. Attorney Damian Williams said: “As alleged, for over a year, Herman Brightman preyed upon woman after woman using the internet to lure these women into meeting and dating him and posing as a nurse or nurse practitioner to gain their trust.  He then quickly became physically abusive towards them, going so far as to kidnap the women at knifepoint and threaten to kill them.  Today’s charges put a stop to this abusive and violent behavior.  We thank and commend the courageous women who came forward to report Brightman.” 

NYPD Commissioner Edward A. Caban said: “The men and women of the NYPD condemn these deeply disturbing and heinous acts allegedly committed by a serial predator. Across jurisdictional boundaries, we and our law enforcement partners take all accusations of abuse seriously and remain dedicated to ensuring justice for the victims.”

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

From between in or about January 2022 to in or about September 2023, BRIGHTMAN used social media platforms such as Facebook and the dating application Hinge to meet, and occasionally date, several women under false pretenses.  Specifically, BRIGHTMAN, often used an alias and posed as a nurse or nurse practitioner working at New York City-area hospitals, even sending pictures and videos of himself wearing scrubs and lab coats, and creating false IDs for himself.  Some of those photos are included below:

Shortly after he began dating his victims, BRIGHTMAN began to act violently towards them, particularly if they attempted to end the relationship.  As set forth in the Indictment, between January 2022 and September 2023, BRIGHTMAN brutalized at least four such women.

In or about July 2022, BRIGHTMAN traveled from New Jersey to the Southern District of New York and forced at knifepoint a woman (“Victim-1”) who had recently decided to break up with him and her minor child (“Minor Victim-1”) to travel from the Southern District of New York to BRIGHTMAN’s residence in New Jersey.  Once they arrived at BRIGHTMAN’s residence, BRIGHTMAN threatened to kill Victim-1 if she “made any problems” and literally held onto Victim-1 for an entire evening to prevent her from escaping.  Victim-1 eventually did escape the next morning and was able to contact local police after she convinced BRIGHTMAN to let her leave his residence temporarily. 

In or about August 2023, BRIGHTMAN brutally attacked a Queens woman he had been dating (“Victim-2”) in her home and held her at knifepoint.  During the attack, BRIGHTMAN threatened to “gut” Victim-2 “like a fish.”  BRIGHTMAN also bound Victim-2’s hands and attempted to tape Victim-2’s mouth.  Approximately one week after this incident, Victim-2 ended her relationship with BRIGHTMAN.  In the 24 hours that followed, BRIGHTMAN called Victim-2 over 20 times, including from private blocked numbers.  On one particular phone call, BRIGHTMAN repeatedly threatened Victim-2.

In or about early September 2023, BRIGHTMAN traveled from New Jersey to the Bronx, New York, and used his phone to lure a third woman he was dating (“Victim-3”) to his car.  While in BRIGHTMAN’s car, BRIGHTMAN forced Victim-3 to call Victim-2.  BRIGHTMAN then punched Victim-3, leaving a bruise on her arm.  When Victim-3 attempted to escape, BRIGHTMAN chased after her and put her in a choke hold.  Victim-3 escaped into her building and called the police.

A few days later, BRIGHTMAN returned to the Bronx to confront Victim-3 at her job.  During the confrontation, BRIGHTMAN repeatedly asked Victim-3 if she had contacted the police.  BRIGHTMAN then followed Victim-3 home where BRIGHTMAN assaulted her again, pushing Victim-3 to the ground and throwing a traffic cone at her.

In or about late September 2023, BRIGHTMAN traveled to the Bronx and convinced a fourth woman (“Victim-4”), who had previously ended their relationship, to allow him into her home.  Inside Victim-4’s home, BRIGHTMAN assaulted and strangled Victim-4, leaving her with bruising on her neck.  BRIGHTMAN also repeatedly threatened to kill Victim-4 and attempted to rape her.  Victim-4 was ultimately able to escape with the help of a friend.

If you have been victimized by HERMAN CALVIN BRIGHTMAN, a/k/a “Nazir Griffiths,” a/k/a “Nazir Luckett,” or have any additional information about his alleged illegal behavior, please contact the U.S. Attorney's Office for the Southern District of New York at 1-866-874-8900 and reference this case. 

*                *                *

BRIGHTMAN, 30, of West New York, New Jersey, is charged with one count of kidnapping a minor, which carries a minimum sentence of 20 years in prison and a maximum sentence of life in prison; one count of threatening physical harm by interstate communication, which carries a maximum sentence of five years in prison; one count of cyberstalking, which carries a maximum sentence of five years in prison; two counts of kidnapping, which each carry a maximum sentence of 20 years in prison; two counts of travel in interstate commerce to commit a crime of violence, which each carry a maximum sentence of five years in prison; and one count of travel in interstate commerce to stalk, which carries a maximum potential sentence of five 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 investigative work of the NYPD, Task Force Officers assigned to the U.S. Attorney’s Office for the Southern District of New York, and the Complex Analytics and Social Media Enhancement Team at the New York/New Jersey High Intensity Drug Trafficking Areas office for their work on the investigation.  Mr. Williams also thanked the Bronx District Attorney’s Office, the Queens District Attorney’s Office, and the Ocean County District Attorney’s Office in New Jersey for their assistance in the investigation.

The case is being prosecuted by the Office’s Violent & Organized Crime Unit.  Assistant U.S. Attorneys Patrick Moroney and Ni Qian are in charge of the prosecution.

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

[1] As the introductory 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.

Damian Williams, the United States Attorney for the Southern District of New York, announced that BORIS AMINOV pled guilty today to conspiracy to commit health care fraud in connection with engaging in a years-long scheme to defraud Medicaid, Medicare, and private insurance companies out of at least $20 million.  10 other defendants were charged in connection with the scheme in two separate indictments unsealed in March and October 2023.  AMINOV pled guilty before U.S. District Judge Mary Kay Vyskocil and is scheduled to be sentenced on April 17, 2024.

U.S. Attorney Damian Williams said: “Boris Aminov orchestrated a scheme to get rich by lying to Medicaid, Medicare, and private insurance companies and by depriving vulnerable HIV patients of legitimate and safe medications.  Aminov also made millions of dollars through buying and distributing black-market HIV medications to pharmacies all over New York City.  This Office will be tireless in its pursuit of those who seek to line their pockets by preying on vulnerable members of society.”

According to the allegations contained in the Superseding Indictments and statements made in court proceedings:

From at least in or about 2017 through at least in or about 2023, AMINOV and others engaged in a scheme that defrauded Medicaid, Medicare, and private insurance companies out of at least approximately $20 million through trafficking in black-market HIV medication.  In doing so, they exploited at least hundreds of low-income individuals who had been prescribed HIV medication, jeopardizing the health and safety of those vulnerable patients. 

AMINOV distributed black-market HIV medications to pharmacies that were owned and operated by other co-conspirators.  That medication was then dispensed to unknowing patients who believed they were receiving legitimate medication.  To further their scheme and conceal their proceeds, co-conspirators used bank accounts associated with their respective pharmacies to funnel money to shell companies controlled by AMINOV.

*                *                *

AMINOV, 47, of Brooklyn, New York, pled guilty to one count of conspiracy to commit health care fraud, which carries a maximum potential sentence of 10 years in prison.

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

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

This case is being handled by the Office’s General Crimes Unit.  Assistant U.S. Attorneys Jeffrey W. Coyle and Jackie Delligatti are in charge of the prosecution.

The Justice Department announced today that the Madoff Victim Fund (MVF) began its ninth distribution of over $158.9 million in funds forfeited to the U.S. government in connection with the Bernard L. Madoff Investment Securities LLC (BLMIS) fraud scheme.

In this distribution, payments will be sent to 24,875 victims across the globe, bringing their total recoveries to 91% of their fraud losses. Through its nine distributions, MVF has paid over $4.22 billion to 40,843 victims as compensation for losses they suffered from the collapse of BLMIS.

“The department’s Madoff Victim Fund has exceeded expectations in the level of recovery provided to victims of the fraud committed by Bernard Madoff, which devastated thousands of lives,” said Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division. “To date, the Madoff Victim Fund has assisted more than 40,800 individual victims in recovering over 90% of victim losses. The department continues to prioritize the use of civil asset forfeiture to ensure compensation is available for victims of fraud.” 

“In 2009, when the Southern District of New York charged Bernie Madoff for his $64 billion securities fraud ‘Ponzi’ scheme, it was one of the most prolific financial crimes in American history. Among Madoff’s many victims were not only wealthy and institutional investors, but charities and pension funds alike — some of which invested money with Madoff on behalf of individuals working paycheck-to-paycheck who were relying on their pension accounts for their retirements,” said U.S. Attorney Damian Williams for the Southern District of New York. “The financial toll on those who entrusted their money with Madoff was devasting, and this office’s unprecedented efforts to return money to Madoff’s victims has now resulted in clawbacks of 91% of fraud losses to their rightful owners. I commend the career prosecutors of this office for today’s distribution of over $158 million and for their relentless pursuit of justice for victims of Wall Street fraudsters, like Bernie Madoff.”

According to court documents and information presented in related proceedings, for decades, Bernard L. Madoff used his position as chairman of BLMIS, the investment advisory business he founded in 1960, to steal billions of dollars from his clients. On March 12, 2009, Madoff pleaded guilty to 11 federal felonies, admitting that he had turned his wealth management business into the world’s largest Ponzi scheme, benefitting himself, his family, and select members of his inner circle.

On June 29, 2009, Madoff was sentenced to 150 years in prison for running the largest fraudulent scheme in history. Of the over $4 billion that has been made available to victims, approximately $2.2 billion was collected as part of the historic civil forfeiture recovery from the estate of deceased Madoff investor, Jeffry Picower. An additional $1.7 billion was collected as part of a deferred prosecution agreement with JPMorgan Chase Bank N.A. and civilly forfeited in a parallel action. The remaining funds were collected through a civil forfeiture action against investor Carl Shapiro and his family, and from civil and criminal forfeiture actions against Madoff, Peter B. Madoff, and their co-conspirators.

The MVF’s payouts would not have been possible without the extraordinary efforts of the Criminal Division’s Money Laundering and Asset Recovery Section, U.S. Attorney’s Office for the Southern District of New York, and FBI in the prosecution of Madoff’s crimes and the recovery of assets supporting the forfeiture in the case.

The MVF is overseen by Richard Breeden, former chairman of the U.S. Securities and Exchange Commission, who serves as Special Master appointed by the Justice Department to assist in connection with the victim remission proceedings. Breeden and his team at MVF provided essential assistance to evaluate over 68,000 remission petitions involving billions in cash flows, and to compute each victim’s fraud losses to enable payments to be made. 

More information about MVF and its compensation to victims of BLMIS is at www.madoffvictimfund.com, such as eligibility criteria, process updates, and frequently asked questions. Further questions may be directed to the MVF at 866-624-3670 or [email protected].

Damian Williams, the United States Attorney for the Southern District of New York, announced on December 11, 2023, that a federal jury found DIONISIO FIGUEROA, a/k/a “Dionicio,” an employee of the U.S. District Court for the Southern District of New York (“the SDNY District Court”), guilty of bribery, conspiracy, and false statements charges for his participation in a scheme in which he referred criminal defendants to a criminal defense attorney and encouraged those defendants to retain the attorney, all in exchange for cash bribes.  The attorney pled guilty to all counts on November 16, 2023.  FIGUEROA will be sentenced by U.S. District Judge Mae A. D’Agostino on April 8, 2024.

U.S. Attorney Damian Williams said: “Figueroa, a longtime clerk at the SDNY District Court, betrayed his employer, the public, and those who rely on the court to remain impartial.  His actions violated his duties as a court employee, undermined the fair administration of justice, and undermined the work of the many good people in the courthouse who serve the criminal justice system with honesty and integrity.  A federal jury has now held Figueroa accountable for his crimes.  This verdict should remind public servants in positions of trust that if you betray the public, my Office will not hesitate to enforce the law.”

According to the Indictment, statements made in public court proceedings and filings, and the evidence at trial:

As a clerk in the SDNY Magistrate Clerk’s Office since in or about 2002, FIGUEROA 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 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.” 

TELESFORO DEL VALLE, JR., was a private attorney who had appeared in numerous federal criminal cases pending before the SDNY District Court.

Between at least 2011 and 2022, FIGUEROA and DEL VALLE 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 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 were assigned free, court-appointed counsel.  Nevertheless, FIGUEROA encouraged those individuals to change counsel, including by vouching for DEL VALLE’s abilities as a lawyer.

FIGUEROA and DEL VALLE were also charged with making false statements to law enforcement during the investigation. In November 2022, federal law enforcement agents separately interviewed both FIGUEROA and DEL VALLE.  After advising each that lying to federal law enforcement agents is a federal crime, FIGUEROA and DEL VALLE each made materially false, fictitious, and fraudulent statements and representations in response to the agents’ questions.  In particular, FIGUEROA denied making any referrals to DEL VALLE except on a small number of occasions concerning close relations or friends. He further denied ever having received payments from DEL VALLE for referrals.  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.

DEL VALLE pled guilty to all charges on November 16, 2023, and is scheduled to be sentenced by Judge D’Agostino on March 12, 2024.

*                *                *

FIGUEROA, 66, of New York, New York, was convicted of 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 federal employee bribery, which carries a maximum potential sentence of 15 years in prison; one count of receiving illegal compensation as 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.

DEL VALLE, 65, of Leonia, New Jersey, was convicted of 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 federal employee bribery, 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.

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 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, with the assistance of Paralegal Specialist Christopher de Grandpre, are in charge of the prosecution.

Damian Williams, the United States Attorney for the Southern District of New York, announced today that AMIT BHARDWAJ, the former Chief Information Security Officer at Lumentum Holdings Inc. (“Lumentum”), was sentenced by U.S. District Judge Gregory H. Woods to 24 months in prison for his participation in a scheme to commit insider trading based on material, non-public information (“MNPI”) that BHARDWAJ misappropriated from his employer, Lumentum.  BHARDWAJ previously pled guilty to 13 counts relating to the insider trading scheme.

U.S. Attorney Damian Williams said: “Amit Bhardwaj violated the trust placed in him by his employer by tipping his associates with valuable, non-public information regarding Lumentum’s planned corporate acquisitions.  Today’s sentence should serve as a stark reminder to corporate executives regularly entrusted with confidential business information that if you try to illegally profit from this information, you will pay a stiff price.”

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

In approximately December 2020, BHARDWAJ learned that Lumentum was considering acquiring Coherent, Inc (“Coherent”).  Based on this information, BHARDWAJ purchased Coherent stock and call options, then tipped three associates –– his friend Dhirenkumar Patel, another friend, and one of BHARDWAJ’s close family relatives –– and these individuals all traded in Coherent securities as a result.  BHARDWAJ and Patel agreed that Patel would pay BHARDWAJ 50% of the profits that Patel earned by trading in Coherent based on the MNPI provided by BHARDWAJ.  When Coherent’s stock price increased substantially following the announcement of the Lumentum acquisition, BHARDWAJ, his close family member, his friend Patel, and another friend closed their positions in Coherent securities and collectively profited by nearly $900,000.

In or about October 2021, BHARDWAJ learned that Lumentum was engaged in confidential discussions with Neophotonics Corporation (“Neophotonics”) about a potential acquisition.  BHARDWAJ provided this information to Srinivasa Kakkera, Abbas Saeedi, and Ramesh Chitor, and these individuals all subsequently traded in Neophotonics securities.  In connection with Chitor’s trading, BHARDWAJ and Chitor agreed that Chitor and BHARDWAJ would split the profits equally.  When Neophotonics’s stock price increased substantially following the announcement of the Lumentum acquisition in November 2021, Kakkera, Saeedi, and Chitor closed their positions in Neophotonics securities and collectively made approximately $4.3 million in realized and unrealized profits.

After they were interviewed by the Federal Bureau of Investigation (“FBI”) voluntarily and served with federal grand jury subpoenas on approximately March 29, 2022, BHARDWAJ took steps to obstruct the federal investigation of their conduct.  On the day of the March 29, 2022, FBI interviews, BHARDWAJ drove to the homes of certain of his co-conspirators to encourage them not to tell the federal authorities the truth about their insider trading scheme.  BHARDWAJ and his associates subsequently met in person on multiple occasions and discussed, among other things, potential false stories that would conceal their insider trading scheme.  They also created false documents to buttress lies regarding payments that were, in reality, related to the insider trading scheme.

*                *                *

In addition to the prison sentence, BHARDWAJ, 49, of San Ramon, California, was ordered to forfeit $547,286 and pay a fine of $975,000.

Mr. Williams praised the outstanding work of the FBI.  He also acknowledged the assistance of the Securities and Exchange Commission, which separately initiated civil proceedings against BHARDWAJ. 

This case is being handled by the Office’s Securities and Commodities Fraud Task Force.  Assistant U.S. Attorneys Adam Hobson and Noah Solowiejczyk are in charge of the prosecution.

Damian Williams, the United States Attorney for the Southern District of New York, announced that SINA MOAYEDI, the owner of a construction company, Montage, Inc., was sentenced today to 10 years in prison, stemming from his 25-year fraud on the United States Government.  MOAYEDI pled guilty in April 2023 to conspiracy to commit wire and bank fraud, conspiracy to commit bribery of a public official, and aggravated identity theft.  MOAYEDI’s sentence was imposed by U.S. District Judge Jed S. Rakoff, who also presided over his guilty plea.

U.S. Attorney Damian Williams said: “From 1995 until 2021, Sina Moayedi defrauded the U.S. Government and various of its agencies through a sprawling, sophisticated scheme.  Moayedi lied repeatedly about his company’s ownership and qualifications, including by claiming that it was woman-owned and Hispanic-owned; he lied to obtain a Top-Secret national security clearance; and he repeatedly paid bribes to a State Department employee to illegally obtain inside information.  In total, Moayedi’s company fraudulently obtained more than 25 government contracts worth more than $125 million.  Even after he was arrested in this case, Moayedi continued to commit crime, destroying electronic evidence of his frauds.  For his brazen fraud on the federal government, Moayedi has now been sentenced to prison.”

According to court filings and statements made in Manhattan federal court:

 In 1986, MOAYEDI founded Montage, Inc., a U.S.-based business that is primarily involved in Government construction projects, including embassies, consulates, military posts, and marine barracks around the world.  From 1995 to 2021, MOAYEDI defrauded the U.S. Government — including the State Department, Treasury Department, Department of Defense, and General Services Administration — by lying in various respects.  In bids for contracting work, MOAYEDI mispresented his company’s ownership, his employees’ qualifications, his company’s construction experience, and his company’s financial condition, among other things. 

As to ownership, MOAYEDI falsely represented, repeatedly, that Montage was a female-owned business (or a female- and minority-owned business) in order to secure unmerited advantages in the bidding process.  In fact, MOAYEDI founded, owned, ran, and controlled Montage, and he made all material decisions on Montage’s behalf.  As MOAYEDI revealed to a bank that inquired about Montage’s ownership status in 2016, “I am the sole owner and president of Montage and have always been.” 

As to his employees’ qualifications, MOAYEDI significantly overstated the qualifications of various Montage employees in order to, among other things, meet State Department and contractual requirements for minimum experience in certain key positions.  For instance, MOAYEDI claimed, falsely, that certain Montage employees possessed engineering degrees.  He also claimed, falsely, that certain individuals worked for Montage when, in fact, they did not.

As to Montage’s construction experience, MOAYEDI submitted bids to the Government in which he repeatedly falsified Montage’s purported construction experience in order to burnish the company’s alleged credentials.  To ensure that the U.S. Government did not uncover these lies, MOAYEDI “backstopped” this fabricated experience by creating fraudulent email accounts and personas, so that someone else appeared to be “vouching” that Montage had performed this prior work.  This required creating online web domains (the “Fabricated Domains”), so that Montage’s purported references appeared legitimate.  These Fabricated Domains were extremely similar to, but one character or word different from, the legitimate web domains associated with actual entities. 

As to financial condition, MOAYEDI paid a Certified Public Accountant to prepare at least four different sets of books and records, each of which was provided to a different recipient (e.g., one fraudulent set for the U.S. Government, another fraudulent set for the bank, another fraudulent set for a company that sold construction bonds, etc.).

And to ensure Montage’s eligibility for sensitive U.S. Government contracts, MOAYEDI lied to obtain and maintain his Top-Secret national security clearance, including by concealing his ties to Iran, such as his dual citizenship with Iran, his Iranian passport, and his travel to Iran.

Further, between 2014 and 2020, MOAYEDI repeatedly paid cash bribes and kickbacks to an engineer in the State Department’s Overseas Building Operations division, May Salehi, in exchange for confidential inside information relating to several State Department construction projects, including projects in Ecuador, Spain, and Bermuda.  For instance, in late 2016 and early 2017, MOAYEDI paid $60,000 in cash to Salehi after Salehi provided confidential inside bidding information to MOAYEDI about the relationship between Montage’s original bid and his competitors’ bids — information that allowed Montage to raise its bid by nearly $1 million yet remain the lowest bidder on a construction project that was ultimately awarded to Montage. 

In addition to fraudulently obtaining government contracts, MOAYEDI’s company also committed fraud in the execution of government contracts, including by using substandard materials, using unqualified personnel, and falsifying an architect’s signature and stamp on architectural plans that had not been reviewed by the architect, including plans that related to safety and structural issues, such as fire protection, roof design, and structural steel drawings.

MOAYEDI also defrauded his primary bank (“Bank-1”) through various misrepresentations.  Montage had a multimillion-dollar line of credit at Bank-1, which MOAYEDI maintained through misrepresentations about Montage’s ownership and the value, progress, status, and existence of construction projects that Montage was performing for the U.S. Government.  For instance, in or about both 2014 and 2019, MOAYEDI made material misrepresentations to Bank-1 in support of an annual extension of Montage’s line of credit, including misrepresentations about purportedly lucrative “classified” government construction projects with distinctive names like “Area 6,” which, in fact, did not exist.

MOAYEDI also obstructed justice in multiple respects: (i) in September 2021, shortly after his release on bail in this case, MOAYEDI destroyed electronic evidence of his fraud on the U.S. Government by deleting six Fabricated Domains, which (as noted) he had used to help inflate Montage’s purported construction experience in bids for U.S. Government construction projects; (ii) shortly after the execution of search warrants at Montage’s offices in September 2020, MOAYEDI witness tampered by pressuring a co-conspirator to lie to investigators; and (iii) during a civil lawsuit between the State Department and Montage, MOAYEDI lied during a sworn deposition in 2019 by falsely claiming that a Hispanic woman had been the President of Montage “ever since” 2002 and that he was merely the Vice President of Montage.

Finally, in October 2023, the Court held a multiday Fatico hearing regarding the quality of construction that MOAYEDI and Montage provided the State Department.  The Court determined that MOAYEDI “provided grossly inadequate construction for several of the contracts of which he was in charge” and “that these numerous defects were intentional.”  In particular, the Court found that, “[r]epeatedly, Moayedi falsely inflated the credentials of key personnel -- and in some cases, submitted names of people who never even worked for Montage -- that he touted to the State Department to win bids, only to send in their stead people that he knew were patently unqualified for their roles once he secured the contract in question.”

*                *                *

In addition to his prison sentence, MOAYEDI, 68, of Chevy Chase, Maryland, was sentenced to three years of supervised release and ordered to pay restitution in the amount of $6,588,679.63 and forfeit $17,795,098.50.

May Salehi was previously sentenced to one year in prison, three years of supervised release, a fine of $500,000, and forfeiture of $60,000.

Mr. Williams praised the exceptional investigative work of the State Department, Office of Inspector General; Special Agents from the U.S. Attorney’s Office for the Southern District of New York; and the Internal Revenue Service. 

The Office’s Complex Frauds and Cybercrime Unit is handling this criminal case.  Assistant U.S. Attorney Michael D. Neff is in charge of the prosecution.

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.

*                *                *

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.

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.

*                *                *

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.  

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.

*                *                *

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.

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. 

*                *                *

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.

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.

*                *                *

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.

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.

*                *                *

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 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.

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.

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

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

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.

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. 

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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.