Southern District of New York

United States Attorney for the Southern District of New York, Jay Clayton, and Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), James C. Barnacle, Jr., announced today the unsealing of an Indictment charging eight defendants—VAGAN GULIAN, ZHIRAYR GUMRUYAN, SEVAK KOCHARIAN, ARAIK SETRAKIAN, VITALY KOSHELAN, ARKADIY PASTIN, JASHANPREET SINGH, and EDGAR BEZHANIAN—with conspiracy to transport and possess stolen property in connection with an international, organized scheme to steal cargo from commercial shippers.  

GULIAN, GUMRUYAN, and SETRAKIAN were arrested in California and will be presented in the Central District of California; KOSHELAN was arrested in Florida and will be presented in the Southern District of Florida; SINGH was arrested in Pennsylvania and will be presented in the Eastern District of Pennsylvania; PASTIN was arrested in New York and will be presented before U.S. Magistrate Judge Stewart D. Aaron; and KOCHARIAN is in custody in connection with a pending case and will be presented in the Southern District of New York.  BEZHANIAN is at large.  The case has been assigned to U.S. District Judge Andrew L. Carter.

“As alleged, the defendants were members of a sophisticated, international enterprise whose members stole millions of dollars’ worth of merchandise and sold those stolen goods on the black market,” said U.S. Attorney Jay Clayton.  “Organized cargo theft is an attack on the integrity of our nation’s commercial supply chain and our markets more generally.  Those who conspire to disrupt commerce and harm consumers will be met with a coordinated law enforcement response.  Our Office is committed to ridding our supply chains of organized crime, and we will pursue those who exploit global commerce for illicit gain.”

“These eight defendants allegedly were members of an international network to steal merchandise and resell these stolen goods at the direct expense of sellers, shippers, and buyers,” said FBI Assistant Director in Charge James C. Barnacle, Jr.  “The FBI’s Eurasian Organized Crime Task Force works to dismantle illegal operations designed to generate illicit profits both domestically and internationally.” 

As alleged in the Indictment and documents submitted to Court: 

Between in or around March 2023 and the present, the defendants, together with others known and unknown, carried out a large-scale, organized scheme to steal cargo from commercial shippers (the “Cargo Theft Enterprise”). In total, the Cargo Theft Enterprise stole goods worth at least approximately $10 million.  The Cargo Theft Enterprise operated throughout the United States and targeted high-value merchandise including electronics, liquor, meat, fish, eggs, clothing, skincare products, and cryptocurrency mining machines, among numerous other items.  The defendants and other members of the Cargo Theft Enterprise perpetrated their scheme by diverting, possessing, transporting, and selling numerous loads of stolen merchandise.  The Cargo Theft Enterprise relied on the coordinated efforts of at least one “dispatcher” located abroad and facilitators, drivers, and workers located in the United States.

In a typical theft, at least one member of the Cargo Theft Enterprise fraudulently impersonated a legitimate shipping carrier, or other shipping supply chain personnel and companies, to obtain a contract to transport goods from a shipping company to a customer.  Other members of the Cargo Theft Enterprise then picked up the load or otherwise diverted the truck containing the load away from its intended destination, including by altering the delivery address and other information on shipping paperwork, and by removing geolocation tracking devices affixed to shipped cargo to track its location and ensure it reaches its proper destination.  Once the truck reached the Cargo Theft Enterprise’s intended destination, members of the scheme offloaded and sold the stolen merchandise—including to co-conspirators known as “fences,” who knowingly purchased and resold stolen merchandise on the secondary market—for an illicit profit. 

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VAGAN GULIAN, 37, of Glendale, California; ZHIRAYR GUMRUYAN, 36, of Northridge, California; SEVAK KOCHARIAN, 37, of Brooklyn, New York; ARAIK SETRAKIAN, 36, of Los Angeles, California; VITALY KOSHELAN, 56, of Dania Beach, Florida; ARKADIY PASTIN, of Brooklyn, New York; JASHANPREET SINGH, 29, of Oaklyn, New Jersey; and EDGAR BEZHANIAN, 46, of Yerevan, Armenia, are each charged with one count of conspiracy to transport and possess stolen merchandise, which carries a maximum sentence of five years in prison.  

KOCHARIAN is separately charged with one count of conspiracy to commit extortion, which carries a maximum sentence of twenty years in prison.  That case is pending before U.S. District Judge Naomi Reice Buchwald.

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

Mr. Clayton praised the outstanding investigative work of the FBI’s Eurasian Organized Crime Task Force. Mr. Clayton also thanked the New York City Police Department, the New Jersey State Police, the Port Authority Police Department, the Manhattan District Attorney’s Office, Homeland Security Investigations, and U.S. Immigration and Customs Enforcement.

The case is being handled by the Office’s General Crimes Unit.  Assistant U.S. Attorneys Kevin Grossinger and David Steinbach 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.

United States Attorney for the Southern District of New York, Jay Clayton, announced today that KWANE REYNOLDS was convicted of possessing ammunition after a felony conviction.  REYNOLDS was found guilty following a three-day trial before U.S. District Judge Jeannette A. Vargas. 

“Kwane Reynolds, who had previously been convicted of a felony, shot a victim in the stomach at point-blank range on a busy public street in the Bronx,” said U.S. Attorney Jay Clayton.  “This Office is committed to prosecuting to the maximum extent of the law gun violence committed by violent felons.”

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

 On December 30, 2024, on a public sidewalk in the Bronx in broad daylight, the defendant fired two shots at another individual (the “Victim”).  The shooting was captured on surveillance video, which showed that, following a verbal dispute between the defendant and the Victim, REYNOLDS drew a firearm and shot the Victim in the stomach at close range. REYNOLDS then fled the scene on a bicycle.  REYNOLDS has previously been convicted of a felony. 

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REYNOLDS, 58, of Yonkers, New York, was convicted of knowingly possessing ammunition after having been convicted of a felony, which carries a maximum penalty of 15 years in prison.  A sentencing date has not yet been scheduled. 

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

Mr. Clayton praised the outstanding work of the New York City Police Department. 

This case is being handled by the Office’s General Crimes Unit.  Assistant U.S. Attorneys Cameron Molis, Joe Zabel, and Jacob R. Fiddelman are in charge of the prosecution, with assistance from Paralegal Specialist Frank Mastroianni. 

United States Attorney for the Southern District of New York, Jay Clayton, announced that LE VAN HUNG, a/k/a “Hung Van Le,” a/k/a “Van Hung Le,” pled guilty to participating in a conspiracy to commit identity theft based on his role in a transnational scheme to launder at least approximately $67 million of illegally obtained funds to benefit, among others, a multinational media company headquartered in New York, New York (the “Media Company”).  HUNG pled guilty today before U.S. Magistrate Judge Stewart D. Aaron and is scheduled to be sentenced by U.S. District Judge Victor Marrero on September 29, 2026. 

“For nearly four years, Le Van Hung oversaw an operation that stole the identities of thousands of Americans for use in a sprawling money laundering conspiracy,” said U.S. Attorney Jay Clayton.  “Today’s guilty plea, together with Hung’s agreement to forfeit $67,000,000 and make restitution to victims of this scheme, demonstrate the commitment of this Office to hold perpetrators of financial crimes accountable and to stand up for victims.”

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

From at least in or about 2020, through in or about May 2024, HUNG, while working for the Vietnamese office of the Media Company, conspired with others to participate in a sprawling, transnational scheme to launder at least approximately $67 million of illegally obtained funds to bank accounts in the names of the Media Company and related entities.  In order to further the money laundering scheme, HUNG exploited stolen personally identifiable information and documents of thousands of U.S. residents in order to, among other things, open and maintain financial accounts that were used to launder fraud proceeds.  HUNG also recruited and managed various co-conspirators, including co-conspirators who worked with the Media Company’s “Make Money Online” team. 

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HUNG, 31, of Vietnam, pled guilty to one count of conspiring to commit identity theft, which carries a maximum sentence of five years in prison.  HUNG also agreed to forfeit at least $67 million, representing proceeds traceable to the offense, and separately to pay restitution up to $67 million.

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

Mr. Clayton praised the outstanding investigative work of the Department of Labor’s Office of Inspector General, the Department of State’s Diplomatic Security Service, and the Special Agents of the U.S. Attorney’s Office for the Southern District of New York. 

The case is being handled by the Office’s Public Corruption Unit. Assistant U.S. Attorneys Benjamin M. Burkett, Rebecca T. Dell, Paul M. Monteleoni, Daniel C. Richenthal, and Amanda C. Weingarten are in charge of the prosecution.

United States Attorney for the Southern District of New York, Jay Clayton, and Assistant Administrator of the Food Safety and Inspection Service of the U.S. Department of Agriculture (“USDA-FSIS”)’s Office of Investigation, Enforcement and Audit, William Griffin, announced today that U.S. District Judge Edgardo Ramos has imposed civil penalties on defendants FIRST GOLD COAST CORPORATION d/b/a GOLD COAST TRADING COMPANY (“First Gold”), KWABENA ASAMOAH ADJEI, CHRISTOPHER AHENKORA, and MICHAEL AHENKORA for violating a previously entered judicial consent decree requiring the defendants to comply with food safety laws at their meat and poultry business.  The order imposes a $120,500 civil penalty on the defendants for continuing to sell uninspected and misbranded poultry products and for failing to complete mandatory food safety training.

“This Office has no tolerance for parties who continue in their unlawful ways after they commit to come into compliance,” said U.S. Attorney Jay Clayton.  “This conduct is all the worse where, as here, it endangers the safety of the food that families put on their tables.  The imposed financial penalty should serve as notice to all parties that they must live up to their legal commitments and comply with the law.”

“As the USDA agency responsible for ensuring that America’s meat, poultry, and egg products remain the safest in the world, FSIS is committed to taking swift action to protect consumers and carry out our public health mission,” said FSIS Assistant Administrator for the Office of Investigation, Enforcement and Audit William Griffin.  “The work of our inspection personnel and investigators to enforce Federal regulations, along with our partnerships with state and local governments, will continue to ensure the safety of our food supply.”

The Federal Meat Inspection Act (“FMIA”) and Poultry Products Inspection Act (“PPIA”) protect public health by ensuring the nation’s commercial supply of meat and poultry is safe, wholesome, and accurately labeled and packaged.  These requirements allow consumers to have confidence in the safety of their meat and poultry products and permit public health officials to trace problems to their source.

This Office first sued First Gold and its then-owner, Daniel Ahenkora, in October 2015, alleging that they had violated the FMIA and the PPIA by selling uninspected and misbranded meat and poultry products.  The Court promptly entered a consent decree enjoining First Gold, Daniel Ahenkora, and affiliated parties from further violations. In December 2024, First Gold and three of Daniel Ahenkora’s sons—KWABENA ASAMOAH ADJEI, CHRISTOPHER AHENKORA, and MICHAEL AHENKORA, who had taken over the business around May 2023—signed an amended consent decree, which was approved by the Court on December 3, 2024.  Among other things, the amended consent decree prohibited the defendants from selling, offering for sale, or receiving in commerce any uninspected or misbranded meat or poultry and required them to complete mandatory training on the FMIA and PPIA. 

The defendants, however, proceeded to violate the amended consent decree.  Specifically, on or about June 26, 2025, First Gold sold approximately 120 pounds of uninspected, misbranded poultry products—namely, 30 pounds of smoked turkey drums, 30 pounds of smoked turkey wings, 30 pounds of fresh turkey wings, and 30 pounds of fresh turkey drums—to a New Jersey retailer.  First Gold used a bandsaw in the store to slice the turkey products without the benefit of federal inspection and then misbranded the products by repackaging them into the original manufacturer boxes that bore the marks of federal inspection, in violation of the amended consent decree.  The defendants also failed to complete the training required by the amended consent decree.

The Court’s June 26, 2026, order requires the defendants to pay a total civil penalty of $120,500—comprising $60,000 for the sale of 120 pounds of misbranded, uninspected turkey products and $60,500 for the defendants’ failure to complete the amended consent decree’s training requirements.  The order also requires the defendants to present a plan for coming into compliance with the amended consent decree's training requirements.

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Mr. Clayton praised the outstanding investigative work of the USDA.

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

United States Attorney for the Southern District of New York, Jay Clayton, announced that CARL ERIK RINSCH, a Los Angeles-based director and writer, was sentenced today by U.S. District Judge Jed S. Rakoff to 30 months in prison for fraudulently stealing $11 million from a subscription video-on-demand streaming service (“Streaming Company-1”) in connection with a planned science-fiction television show called “White Horse,” and then laundering that money.  RINSCH was convicted following a week-long trial in December 2025 before Judge Rakoff.

“Carl Erik Rinsch orchestrated a scheme to steal millions by seeking $11 million from a subscription streaming service, falsely claiming that money would be used to finance a television show that he was creating,” said U.S. Attorney Jay Clayton.  “Instead of using the money to make the show, Rinsch made risky bets on highly speculative stock options and cryptocurrency, and spent millions of dollars on luxury goods for himself.  Today’s sentence sends a deterrent message: fraud will not be tolerated.”

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

RINSCH is a film and television writer and director who partially completed a science-fiction television show called “White Horse.”  In 2018, RINSCH reached an agreement with Streaming Company-1 in which Streaming Company-1 would both pay RINSCH for the existing episodes of White Horse and also fund completion of the rest of the show.  Between 2018 and 2019, Streaming Company-1 paid approximately $44 million for White Horse.

Between late 2019 and early 2020, RINSCH demanded even more money from Streaming Company-1 to complete White Horse.  Streaming Company-1 ultimately agreed to pay another $11 million, and transferred those funds to a company RINSCH controlled on or about March 6, 2020.  The entirety of those funds was to be spent on the completion of White Horse.

But RINSCH did not use those funds to make the show.  Instead, within days, RINSCH began transferring the funds through numerous bank accounts before consolidating them in a personal brokerage account.  RINSCH then used those funds to speculate on stock options.  His trading was unsuccessful, and in less than two months after receiving $11 million from Streaming Company-1, RINSCH had lost more than half of that money.

Even after losing most of the $11 million, RINSCH still did not spend the remaining funds he had stolen on White Horse.  Instead, he used the money to speculate on cryptocurrency, and on personal expenses and luxury items, including at least $1.7 million on credit card bills; at least $3.3 million on furniture, antiques, and mattresses; at least $387,000 on a Swiss watch; and at least $2.4 million on five Rolls Royces and a red Ferrari.

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In addition to the prison term, RINSCH, 48, of Los Angeles, California, was sentenced to three years of supervised release, $11 million in forfeiture, and $700 in mandatory special assessments. 

Mr. Clayton praised the outstanding work of the Federal Bureau of Investigation and the Internal Revenue Service, Criminal Investigation. 

The case is being prosecuted by the Office’s Complex Frauds and Cybercrime Unit.  Assistant U.S. Attorneys Timothy V. Capozzi, Jackie Delligatti, David A. Markewitz, Kevin Mead, and Adam Sowlati are in charge of the prosecution, with the assistance of Paralegal Specialists Maria Larracuente and William Coleman.

United States Attorney for the Southern District of New York, Jay Clayton, announced that THOMAS DOYLE, a/k/a “AJ” or “Austin Doyle,” pled guilty to wire fraud in connection with a scheme by DOYLE to defraud the owner of the painting “Mother and Child on a Hammock” by the 19th-century French Realist painter Gustave Courbet.  DOYLE was previously convicted in the Southern District of New York in 2011 of a separate art-related fraud.  DOYLE pled guilty today before U.S. District Judge Arun Subramanian and is scheduled to be sentenced on November 9, 2026. 

“Thomas Doyle defrauded the owner of a valuable painting by telling a series of brazen lies to get the painting and then sell it so he could keep the profits for himself,” said U.S. Attorney Jay Clayton.  “Today’s guilty plea reflects the commitment of this Office and its law enforcement partners to hold all fraudsters accountable, including bad actors seeking to conduct fraud schemes in the U.S. art market.” 

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

Between December 2022 and March 2025, DOYLE defrauded an art dealer (“Victim-1”) in connection with the sale of the painting “Mother and Child on a Hammock” (the “Hammock”) by Gustave Courbet.  In June 2024, Victim-1 agreed to let DOYLE take custody of the Hammock to facilitate its viewing by a potential buyer.  Soon after, DOYLE told Victim-1 that he had a potential buyer for the Hammock, and Victim-1 authorized DOYLE to sell the painting on his behalf for $550,000.  By early August 2024, DOYLE falsely informed Victim-1 that he had sold the Hammock for that price. 

Instead, DOYLE’s associate (“Associate-1”), acting on DOYLE’s behalf, offered the Hammock for consignment to a Manhattan gallery (“Gallery-1”).  DOYLE provided Associate-1 with a false provenance for the Hammock that was passed on to Gallery-1.  Gallery-1 sold the Hammock on October 1, 2024, for $125,000 to an art collector, and most of the proceeds from the sale went to DOYLE.  

DOYLE never remitted to Victim-1 any proceeds from the sale of the Hammock.  Instead, by February 2025, DOYLE had spent all the proceeds from the sale of the Hammock on personal expenses and his own debts.  DOYLE subsequently falsely blamed his failure to pay Victim-1 on the purported buyer, fraudulently claiming the buyer had yet to pay when in fact DOYLE had been paid and was spending the proceeds of the Hammock sale. 

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DOYLE, 68, of Connecticut, pled guilty to one count of wire fraud, which carries a maximum sentence of 20 years in prison.  DOYLE also agreed to forfeit all proceeds from the offense and pay $125,000 in restitution to the victim.  

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

Mr. Clayton praised the outstanding work of the Federal Bureau of Investigation’s Art Crime Team. 

This case is being handled by the Office’s Illicit Finance and Money Laundering Unit.  Assistant U.S. Attorney Cecilia Vogel is in charge of the prosecution.

United States Attorney for the Southern District of New York, Jay Clayton, Acting Special Agent in Charge of the New York Field Office of Homeland Security Investigations (“HSI”), Pete Gizas, and Commissioner of the New York City Police Department (“NYPD”), Jessica S. Tisch, announced today the unsealing of an Indictment charging JERMAINE BROWN with drug-trafficking crimes that led to two fatal overdoses.  BROWN was presented today before U.S. Magistrate Judge Ona T. Wang and ordered detained.  The case has been assigned to U.S. District Judge Katherine Polk Failla.

“As alleged, for years, Jermaine Brown dealt dangerous drugs, including heroin laced with fentanyl, to New Yorkers,” said U.S. Attorney Jay Clayton.  “Today’s unsealed indictment against Brown reiterates our Office’s clear message: if you deal in fentanyl, you deal in death, and our office will hold you accountable.”

“As alleged, Jermaine Brown callously pumped heroin laced with fentanyl into our communities, and in turn contributed to the horrific overdose deaths of two victims,” said HSI Acting Special Agent in Charge Pete Gizas.  “His arrest removes an accused ruthless drug trafficker from our streets and provides a measure of long-overdue relief to the victims’ families and the neighborhoods he preyed upon.  Every day, HSI New York is relentlessly committed to working with the U.S. Attorney’s Office, the NYPD, and our invaluable law enforcement partners to investigate these heinous crimes and protect our communities from the lethal threat of fentanyl and other narcotics.”

“As alleged, this defendant distributed lethal drugs, including fentanyl-laced heroin, which ultimately led to the overdose deaths of two victims,” said NYPD Commissioner Jessica S. Tisch.  “We will not allow drug peddlers to flood our communities with dangerous poisons and put lives at risk without facing consequences.  Thanks to the efforts of our NYPD investigators, alongside the U.S. Attorney’s Office for the Southern District of New York, we are holding this criminal accountable.” 

As alleged in the Indictment and documents submitted to the Court: 

From at least in or around 2022 through at least in or around December 2025, BROWN, a Manhattan-based dealer, sold a variety of controlled substances, including heroin, to numerous customers.  BROWN provided drugs to some customers over extended periods of time.  Some of BROWN’s customers, however, were unaware that heroin sold by BROWN also at times contained fentanyl.  Multiple victims who bought fentanyl-laced heroin from BROWN were poisoned by BROWN’s fentanyl and died.  Specifically, BROWN’s drugs caused a least two overdose deaths: (i) the death of a 33-year-old man on or about March 19, 2024, in New York, New York and (ii) the death of a 35-year-old woman on or about December 10, 2025, in Frankin Square, New York.

BROWN relied on multiple coconspirators to facilitate his drug trafficking.  Multiple individuals sourced narcotics for BROWN, including in response to explicit requests from BROWN for fentanyl.  BROWN also relied on multiple individuals to assist in the distribution of narcotics by delivering or reselling BROWN’s narcotics, including fentanyl, to others. 

On June 25, 2026, law enforcement searched Brown’s room in a Manhattan hotel pursuant to a judicially authorized warrant.  The search revealed a multitude of narcotics in pill and powder form, along with a duffel bag full of cash.  Photographs of some of the seized items are shown below:

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BROWN, 55, of New York, New York, is charged with one count of conspiracy to distribute narcotics resulting in death and two counts of distribution of narcotics resulting in death, all of which carry a mandatory minimum sentence of 20 years in prison and a maximum sentence of life in prison. 

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

Mr. Clayton praised the outstanding investigative work of HSI and the NYPD.  Mr. Clayton also thanked the Nassau County Police Department. 

The case is being handled by the Office’s Narcotics Unit.  Assistant U.S. Attorneys Getzel Berger and Lauren Phillips 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.

United States Attorney for the Southern District of New York, Jay Clayton, and 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”), Naomi Gruchacz, announced that the United States has settled a civil healthcare fraud lawsuit against DR. ROBERT SIMON, a New Jersey-based urologist, and DR. NICOLE FLEISCHMANN, a New York-based urologist.  The settlement resolves claims that SIMON and FLEISCHMANN violated the False Claims Act by repeatedly subjecting their patients to medically unnecessary surgical procedures in connection with an implantable neurostimulation medical device and then improperly obtaining payments from Medicare for these same unnecessary procedures.

Under the settlement, which was approved yesterday by U.S. District Judge Paul G. Gardephe, SIMON will pay a total sum of $1,112,695.88 plus interest, and FLEISCHMANN will pay a total sum of $1,101,044.80 plus interest.  As a part of the settlement, SIMON and FLEISCHMANN also made extensive factual admissions regarding their conduct.  Among other things, SIMON and FLEISCHMANN admitted that they each caused Medicare to pay claims for implantations of a neurostimulation medical device that were not medically reasonable and necessary and did not comply with Medicare’s billing rules and guidance.

“Dr. Simon and Dr. Fleischmann performed unnecessary surgical procedures on their patients who suffered from urinary incontinence and then billed a taxpayer-funded program for these procedures,” said U.S. Attorney Jay Clayton.  “This illegal scheme violated the trust at the heart of doctor-patient relationships and our healthcare system.  This Office is committed to holding medical providers accountable, protecting patient care, and safeguarding the integrity of taxpayer-funded programs.”

“Health care providers who perform medically unnecessary services can pose a significant risk to patients, especially when pre-operative tests are not completed appropriately and follow-up procedures are performed without sufficient justification,” said HHS-OIG Special Agent in Charge Naomi Gruchacz.  “HHS-OIG continuously works with key law enforcement partners to seek resolutions that hold accountable individuals who exploit federal health care programs.”

As alleged in the Complaint: 

The InterStim device is designed to treat urinary incontinence by sending electrical stimulation to a patient’s sacral nerve.  InterStim’s implantable components include a neurostimulator, a battery, and a thin wire—known as a lead—that connects to the sacral nerve, as well as other components that facilitate transmission of electrical impulses to the sacral nerve.  Relevant Medicare rules require that before a doctor may permanently implant an InterStim device, the patient must have had a successful test stimulation that met specific defined criteria.  The test stimulation is designed to determine whether the InterStim device is likely to be successful in improving the patient’s urinary incontinence.

From January 1, 2011, through December 31, 2022, FLEISCHMANN violated the False Claims Act by submitting, or causing the submission of, false claims to Medicare for medically unreasonable and unnecessary InterStim surgical procedures by failing to perform the required preoperative testing before implanting the InterStim device into patients and unnecessarily implanting two InterStim devices into a patient during the same surgical procedure. 

Similarly, from January 1, 2011, through October 18, 2021 (the “Simon Covered Period”), SIMON violated the False Claims Act by submitting, or causing the submission of, false claims to Medicare for medically unreasonable and unnecessary InterStim surgical procedures by: failing to perform the required preoperative testing before implanting the InterStim device into a patient; unnecessarily implanting two InterStim devices into a patient during the same surgical procedure; performing medically unreasonable and unnecessary battery and InterStim device replacement and revision surgeries; and improperly billing Medicare twice for removing the lead used to stimulate a patient’s sacral nerve during preoperative testing. 

SIMON frequently performed unnecessary procedures on patients to replace the InterStim batteries after the InterStim device had been implanted into his patients, despite the fact that there was often no indication that these batteries needed to be replaced.

SIMON and FLEISCHMANN also frequently implanted two InterStim devices into a patient during the same surgical procedure, in a procedure known as bilateral implantation.  They did this without conducting the required preoperative test to determine that one InterStim device would effectively treat the patient’s urinary incontinence, much less that two InterStim devices would be more effective than one. 

As part of the settlement, SIMON and FLEISCHMANN admitted and accepted responsibility for certain of their own respective conduct alleged by the United States, including the following:

• SIMON and FLEISCHMANN were aware that the Centers for Medicare and Medicaid Services (“CMS”) had issued a National Coverage Determination (“NCD”)—which is a binding statement by CMS setting a national policy granting, limiting, or excluding Medicare coverage for a specific medical item or service—concerning the implantation of sacral nerve stimulators, such as InterStim, to treat urinary incontinence.
• Specifically, SIMON and FLEISCHMANN were aware that in 2002 CMS issued NCD 230.18, which stated that in order to establish that a permanent InterStim implantation is medical necessary, a patient must first undergo a successful test stimulation during which the patient demonstrates a 50% or greater improvement.  This improvement is measured through voiding diaries, which are used by the patient to record their symptoms of urinary incontinence.
• SIMON and FLEISCHMANN primarily performed a percutaneous nerve evaluation test (“PNE”) before permanently implanting the InterStim device into patients.  The PNE is supposed to take place over at least three, and up to seven, days.  SIMON and FLEISCHMANN repeatedly billed Medicare for permanent InterStim implantations despite failing to first complete a successful PNE.  Instead of completing a full PNE, SIMON and FLEISCHMANN frequently conducted an abbreviated test.  Further, SIMON and FLEISCHMANN also failed to collect and keep the voiding diaries required by NCD 230.18.
• SIMON also admitted and accepted responsibility for additional conduct alleged by the United States, including the following:
• During the Simon Covered Period, SIMON rarely concluded that a PNE did not support a permanent implantation—doing so for approximately 3% of his patients who received a PNE.  In these instances, SIMON contemporaneously recorded in his office notes that the PNE did not support a permanent InterStim implantation.  Nevertheless, in each of these cases, SIMON still performed a permanent implantation of the InterStim device and falsely documented in his surgical notes that the PNE had been successful.
• During the Simon Covered Period, SIMON frequently performed medically unreasonable and unnecessary InterStim device revision and replacement surgeries on his patients and then billed Medicare for these procedures.  Specifically, SIMON often surgically removed and replaced InterStim batteries within three years or less of the implantation, despite the fact that InterStim batteries were supposed to last for approximately five years. 
• SIMON also frequently replaced InterStim neurostimulators and added a second InterStim device for patients who started with one InterStim device, without any objective evidence that the neurostimulator needed to be replaced or that the patient would benefit from the implantation of a second InterStim device. 

In connection with the filing of the lawsuit and settlement, the Government joined a private whistleblower lawsuit that had been filed under seal pursuant to the False Claims Act.

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Mr. Clayton praised the outstanding investigative work of HHS-OIG. 

The case is being handled by the Office’s Civil Frauds Unit. Assistant U.S. Attorney Allison M. Rovner is in charge of the case.

United States Attorney for the Southern District of New York, Jay Clayton, announced that LEWIS LI was sentenced today to six years in prison by U.S. District Judge Philip M. Halpern for his role in the forceful abduction and extortion of a man in Peekskill, New York. 

"Today’s sentence reflects the seriousness of this crime and the fear and trauma that Li inflicted on the victim,” said U.S. Attorney Jay Clayton.  “Abducting a man in broad daylight, beating him up, and threatening him and his family is a grave offense that ravages the sense of safety that every community deserves.  Our Office remains committed to protecting the public and ensuring that those who endanger our communities face justice.”

According to the charging instruments, other public filings, and statements in public court proceedings:

On January 28, 2025, LI and his co-conspirators forcefully abducted and threatened their business partner (“Victim-1”) in an effort to obtain almost $1 million from Victim-1.  LI and his co-conspirators planned and prepared for the abduction for at least five days beforehand, taking steps that included purchasing and placing a GPS tracker on the underside of Victim-1’s car, surveilling Victim-1’s home, and digging through Victim-1’s trash.  At approximately 11:30 a.m. on January 28, 2025, LI and three co-conspirators followed and abducted Victim-1 outside of a grocery store on Park Street in Peekskill, New York, forcing Victim-1 into the backseat of a vehicle driven by one of the co-conspirators (“CC-1”) in broad daylight.  LI and his co-conspirators restrainedVictim-1 in the Jeep for approximately one hour and 45 minutes, before dropping Victim-1 off on the street in Elmsford, New York.  During that time, LI and his co-conspirators beat and used a stun gun on Victim-1 and threatened Victim-1 to return approximately $930,000 in cash that LI believed Victim-1 had stolen.

While Victim-1 was in the vehicle, LI and his co-conspirators also threatened Victim-1, in sum and substance, that the money belonged to people involved in organized crime, that Victim-1 owed them an additional $100,000, and that the lives of Victim-1 and Victim-1’s family were in danger unless Victim-1 paid the additional sum.  LI and the others also forced Victim-1 to record a video admitting that Victim-1 had taken the money.  As a result of the abduction, force, and threats, Victim-1 arranged for the disputed cash to be picked up by two of LI’s co-conspirators at a location in Peekskill, New York.  Only after the cash had been retrieved and counted did LI and his co-conspirators release Victim-1 from the vehicle, dropping Victim-1 on the street in Elmsford, New York.

In the days following the abduction, LI and CC-1 continued to threaten to harm Victim-1 and his family in an ongoing effort to extort $100,000 from him.  LI was arrested approximately one week after the abduction, before Victim-1 made any further payments.  In the apartment where LI was arrested, officers found, among other items, a stun gun and LI’s phone, which LI had hidden in the oven.

*               *                *

In addition to the prison term, LI, 36, of Huntington Beach, California, was sentenced to three years of supervised release and ordered to forfeit $910,000.     

Mr. Clayton praised the outstanding investigative work of the Federal Bureau of Investigation’s Westchester Safe Streets Task Force. 

The case is being handled by the Office’s White Plains Division. Assistant U.S. Attorneys Jorja Knauer and Benjamin Levander are in charge of the prosecution.

United States Attorney for the Southern District of New York, Jay Clayton, announced that JOSE MEDINA was sentenced today by U.S. District Judge Lewis A. Kaplan to 27 and a half years in prison for coercing and enticing two minors, committing a felony offense while being a registered sex offender, and possessing child pornography.  MEDINA previously pled guilty on March 11, 2026, before U.S. Magistrate Judge Gary Stein.

“Jose Medina coerced two minors, boys just seven and nine years old, to engage in sexual acts with their mother,” said U.S. Attorney Jay Clayton.  “He then created child pornography videos depicting his crimes.  Participating in this depraved act of sexual abuse was not the end.  The defendant also physically assaulted the boys, including beating and tasing them.  Today, I hope that some measure of justice has come for the victims.” 

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

In February 2024, while MEDINA was living in a truck with his then-girlfriend (“Female-1”) and Female-1’s two minor children (the “Victims”), he coerced and encouraged the Victims to engage in sexual acts with their mother, Female-1, including vaginal, oral, and anal sex.  MEDINA recorded child pornography videos depicting these crimes.  After MEDINA and Female-1 ended their relationship in September 2024, MEDINA returned home to the Bronx, New York, where he distributed the child pornography videos to at least three individuals, including a family friend who promptly reported MEDINA to child protective services.  Further investigation revealed that MEDINA had been physically, emotionally, and sexually abusing the Victims, while they were in his and Female-1’s care. 

At the time MEDINA coerced the Victims to engage in sexual acts with Female-1, he was already a registered sex offender, based on a prior conviction for raping a 14-year-old girl.   

*                *                *

In addition to the prison term, MEDINA, 57, of the Bronx, New York, was sentenced to five years of supervised release. 

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

The prosecution is being handled by the Office’s General Crimes Unit.  Assistant U.S. Attorney Remy Grosbard is in charge of the prosecution.

United States Attorney for the Southern District of New York, Jay Clayton, announced today that VADIM KOMISSAROV, the former Chief Executive Officer of Trident Acquisitions Corp. (“TDAC”), a publicly traded special purpose acquisition company (“SPAC”), was sentenced to three years in prison for committing securities fraud in connection with a scheme to defraud TDAC investors and investors in TDAC’s successor company, Lottery.com Inc., by publicly reporting false and misleading revenue and business information.  KOMISSAROV pled guilty to one count of securities fraud on February 3, 2026, before U.S. District Judge Alvin K. Hellerstein, who imposed today’s sentence.

“Vadim Komissarov, the former CEO of Trident Acquisitions Corp., is going to prison for defrauding his shareholders,” said U.S. Attorney Jay Clayton.  “This Office will continue to work with our law enforcement partners to hold executives of public companies accountable when they commit fraud and lie about it.”

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

From November 2020 through May 2022, KOMISSAROV engaged in a scheme to defraud investors in TDAC and investors in TDAC’s successor company, Lottery.com (the “Revenue Scheme”).  In short, KOMISSAROV and his confederates created the false appearance of revenue-generating business activity for AutoLotto, in advance of a vote by TDAC shareholders on a proposed merger between TDAC and AutoLotto, and later for Lottery.com through a series of sham transactions, including a fraudulent $9 million roundtrip transaction that KOMISSAROV engineered using the alias “Vlad.”

KOMISSAROV later schemed to obstruct the U.S. Securities and Exchange Commission (“SEC”)’s investigation.  For example, during a call with two Lottery.com executives, KOMISSAROV said he wanted to “sync” his “clock[]” with them and align on a false and misleading narrative that concealed his involvement in some of the sham transactions that were part of the Revenue Scheme.  KOMISSAROV warned the Lottery.com executives, “guys, you do understand, you say that I was involved with this transaction . . . . if Trident and me specifically knew about it, then I am in deep, deep, deep, deep water . . . . So, if you come out and say that I was involved, then I am in deep shit.”  KOMISSAROV also gave false and misleading sworn testimony to the SEC about his prior communications with the Lottery.com executives and his involvement in the $9 million fraudulent roundtrip transaction that was part of the Revenue Scheme.

*                *               *

In addition to the prison term, KOMISSAROV, 54, of New York, New York, was sentenced to three years of supervised release and ordered to forfeit $607,028.70, representing the proceeds of KOMISSAROV’s sale of Lottery.com stock before the market was made aware of the fraudulent scheme.

Mr. Clayton praised the outstanding work of the Federal Bureau of Investigation.  Mr. Clayton also expressed appreciation for the assistance of the U.S. Securities and Exchange Commission.

This case is being handled by the Office’s Securities and Commodities Fraud Task Force.  Assistant U.S. Attorneys Justin V. Rodriguez and Matthew R. Shahabian are in charge of the prosecution.

United States Attorney for the Southern District of New York, Jay Clayton, and Special Agent in Charge of the Northeast Region Office of the U.S. Department of Justice Office of the Inspector General (“DOJ OIG”), Ryan T. Geach, announced the unsealing of a Complaint charging TERRI LYNN OUTER, a former contractor with the Bureau of Prisons working at a federal prison in Orange County, New York, with bribery, providing or possessing contraband in prison, and conspiracy to provide or possess contraband in prison.  OUTER was arrested today and will be presented this afternoon before U.S. Magistrate Judge Victoria Reznik. 

“As alleged, Terri Lynn Outer accepted bribes from federal inmates, their family members, and their associates in exchange for smuggling contraband, including drugs, into a federal prison,” said U.S. Attorney Jay Clayton.  “The DOJ refuses to tolerate such corruption in our prisons.  It makes our prisons more dangerous and makes rehabilitation more difficult.”

“Outer’s alleged attempt to accept bribes and smuggle contraband jeopardized the safety and security of the institution,” said DOJ OIG Special Agent in Charge Ryan T. Geach.  “The DOJ OIG is committed to working with its law enforcement partners to bring to justice any Bureau of Prisons employee or contractor who abuses their authority and attempts to smuggle illegal contraband into federal prisons.”

As alleged in the Complaint:(1)

From January 2024 through August 2025, OUTER was employed as a contractor at FCI Otisville, working as a dental assistant.  During her time there, OUTER solicited and received payments in return for smuggling contraband and prohibited objects into the prison. OUTER received more than $163,000 from inmates’ family members and associates, and engaged in extensive communications with inmates, former inmates, and their family members and associates, including discussions with an inmate about having the contents of a package weighing over six pounds smuggled into FCI Otisville. 

On or about August 1, 2025, prison staff searched a specific supply room used by the Health Services Department at FCI Otisville, to which OUTER had access.  During that search, prison staff found contraband that included approximately 3.2 pounds of marijuana and 6.7 pounds of loose-leaf tobacco, pictured below:

Marijuana discovered at FCI Otisville

Tobacco discovered at FCI Otisville

*                *                *

OUTER, 50, of Montague, New Jersey, is charged with one count of bribery, which carries a maximum sentence of 15 years in prison; one count of providing or possessing contraband in prison, which carries a maximum sentence of five years in prison; and one count of conspiracy to provide or possess contraband in prison, which also carries a maximum sentence of five years in prison.

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

Mr. Clayton praised the outstanding investigative work of DOJ OIG; the United States Postal Inspection Service, New York Domicile; the FCI Otisville Special Investigative Services; and the New Jersey State Police.

This case is being handled by the Office’s White Plains Division. Assistant U.S. Attorneys Carmi Schickler and Timothy Deal are in charge of the prosecution.

The charges contained in the Complaint are merely accusations, and OUTER 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.

United States Attorney for the Southern District of New York, Jay Clayton, Special Agent in Charge of the Boston-New York Field Division of the Social Security Administration, Office of Inspector General (“SSA OIG”), Amy Connelly, Acting Special Agent in Charge of the New York Field Office of Homeland Security Investigations (“HSI”), Pete Gizas, and Special Agent in Charge of the Diplomatic Security Service (“DSS”) New York Field Office, Brian Wood, announced today the unsealing of a Complaint charging VERONICA YARASET MOLINA with theft of government funds, healthcare fraud, passport fraud, and aggravated identity theft.  YARASET MOLINA was arrested this morning and presented earlier today before U.S. Magistrate Judge Ona T. Wang.

“For nearly two decades, Veronica Yaraset Molina allegedly stole the identity of an American citizen and used it to loot federal benefit programs of nearly $800,000 in taxpayer funds,” said U.S. Attorney Jay Clayton.  “This Office will pursue those who defraud federal benefit programs.”

“Veronica Yaraset Molina allegedly used a stolen identity to orchestrate a nearly 20-year fraud scheme to siphon off hundreds of thousands of dollars in benefits meant for vulnerable Americans,” said HSI Special Agent in Charge Pete Gizas.  “This kind of calculated fraud is not a victimless crime; it drains taxpayer resources, corrupts vital safety net programs, and inflicts lasting damage on innocent victims who are denied the assistance they need when disaster strikes.  HSI New York, as a leading member of the Homeland Security Task Force New York, is fully committed to relentlessly pursuing fraudsters who exploit our systems and our communities, and we will continue to work side-by-side with the U.S. Attorney’s Office and our law enforcement partners to identify, dismantle, and bring to justice anyone who engages in this kind of predatory conduct.”

“The Diplomatic Security Service mandate extends beyond protecting State Department people, property and information—it includes safeguarding the integrity of U.S. travel documents,” said DSS New York Field Office Special Agent in Charge Brian Wood.  “Molina's alleged use of a fraudulently obtained U.S. passport to repeatedly enter this country is exactly the kind of threat DSS is uniquely positioned to investigate, and we are proud to have worked alongside our law enforcement partners to bring this case to light.”

“The defendant, a Dominican national, is accused of using a stolen identity to fraudulently obtain approximately $120,000 in Social Security disability benefits, unlawfully enriching herself at the expense of American taxpayers,” said SSA OIG Special Agent in Charge Amy Connelly.  “We remain steadfast in our mission to safeguard the integrity of Social Security programs and will continue to aggressively pursue those who exploit vulnerable systems through fraud, identity theft, and other criminal conduct.”

As alleged in the Complaint:

YARASET MOLINA, a Dominican national who has been unlawfully present in the United States since at least approximately 2000, and who assumed the stolen identity of a United States citizen (“Victim-1”), engaged in a nearly 20-year scheme to fraudulently obtain approximately $800,000 in federal benefits, including Social Security disability benefits, Supplemental Nutrition Assistance Program (“SNAP”) benefits, Medicare benefits, and unemployment benefits, to which she was not entitled.

As alleged, YARASET MOLINA repeatedly used Victim-1’s identity to apply for and receive the foregoing benefits across multiple federal programs.  YARASET MOLINA also used Victim-1’s identity to apply for and receive a United States passport, which she used to return to the United States from the Dominican Republic on several occasions.  Due at least in part to YARASET MOLINA’s identity theft scheme, Victim-1 was unable to receive Federal Emergency Management Agency (“FEMA”) benefits in the wake of Hurricane Maria in or about 2017.

*                *                *

YARASET MOLINA, 51, of the Dominican Republic, is charged with four counts of theft of government funds, in violation of 18 U.S.C. § 641, each of which carries a maximum sentence of 10 years in prison; healthcare fraud, in violation of 18 U.S.C. § 1347, which carries a maximum sentence of 10 years in prison; passport fraud, in violation of 18 U.S.C. § 1543, which carries a maximum sentence of 10 years in prison; and aggravated identity theft, in violation of 18 U.S.C. § 1028A, which carries a mandatory minimum sentence of two years in prison, to run consecutively to any other term of imprisonment imposed. 

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

Mr. Clayton praised the SSA-OIG, HSI, DSS, the U.S. Postal Inspection Service, the U.S. Department of Agriculture’s Office of Inspector General, the U.S. Department of Health and Human Services’ Office of Inspector General, and the U.S. Department of Labor’s Office of Inspector General for their assistance in this case.

The case is being handled by the Office’s General Crimes Unit.  Assistant U.S. Attorney Nicholas D. Pavlis is in charge of the prosecution. 

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

On April 7, the Department of Justice announced the creation of the National Fraud Enforcement Division (“Fraud Division”).  The Fraud Division is laser-focused on investigating and prosecuting those who commit fraud against the American people.  The Department’s work to combat fraud supports President Trump’s Task Force to Eliminate Fraud, a whole-of-government effort chaired by Vice President J.D. Vance to eliminate fraud, waste, and abuse within Federal benefit programs.

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.

United States Attorney for the Southern District of New York, Jay Clayton, announced that ANTHONY WALLACE was sentenced today by U.S. District Judge Mary Kay Vyskocil to 33 years and four months in prison for kidnapping a minor, coercing and enticing a minor, transporting a minor interstate for unlawful sexual activity, and producing and possessing child pornography.  WALLACE was convicted following a week-long jury trial in December 2025 before Judge Vyskocil.

“Anthony Wallace met a 15-year-old girl on the street and targeted her for unimaginable abuse and cruelty,” said U.S. Attorney Jay Clayton.  “Over the course of weeks, Wallace physically, sexually, and psychologically abused this minor victim, until she courageously escaped out a fire escape.  This type of abuse and exploitation is every parent’s worst nightmare.  Wallace is now where he belongs and where every New York parent wants him—off our streets.  Our office, together with the NYPD and our federal partners, has devoted substantial resources to combatting sex trafficking and sex crimes involving children and our most vulnerable.  Our victim-oriented approach has resulted in more prosecutions and more predators off the streets.  It also has shown us that we must do more, and we are most effective when we engage as early as practicable with victims and with our communities.  If you have been a victim of a sex crime or have information regarding a sex crime, please call 1-866-874-8900.”

According to the allegations contained in the Indictment, the evidence presented at trial, and other statements made in public court proceedings:

In March 2024, WALLACE met a 15-year-old girl (the “Minor Victim”) in Binghamton, New York.  Over the next four weeks, WALLACE subjected the Minor Victim to escalating physical, sexual, and psychological abuse.  At first, WALLACE kept the Minor Victim against her will in an apartment in Binghamton.  There, WALLACE assaulted the Minor Victim and forced her to disguise her appearance by dyeing her hair and wearing a mask.  WALLACE also gave the Minor Victim a steady stream of drugs, including methamphetamine and marijuana.  While in Binghamton, WALLACE created child pornography of the Minor Victim, which he kept on his cellphone.

On April 1, 2024, WALLACE transported the Minor Victim from Binghamton across state lines, ultimately bringing her to the Bronx, New York, where he kept her in a barricaded apartment.  While in the Bronx, WALLACE continued to physically assault the Minor Victim and forcibly raped her.

On April 4, 2024, the Minor Victim escaped through the window of the Bronx apartment while WALLACE was sleeping.  The Minor Victim immediately called 911 and was eventually returned home to her parents.

*                *                *

In addition to the prison term, WALLACE, 33, of the Bronx, New York, was sentenced to 10 years of supervised release, along with $3,000 in restitution and $500 in mandatory special assessments. 

Mr. Clayton praised the outstanding investigative work of the FBI’s C20 task force and the NYPD.  He also thanked the Broome County Sherriff’s Office for their assistance in this investigation. 

The prosecution is being handled by the Office’s General Crimes Unit.  Assistant U.S. Attorneys Ariana L. Bloom, Remy Grosbard, Joseph H. Rosenberg, and Alexandra N. Rothman are in charge of the prosecution, with the assistance of Paralegal Specialists Samantha Roberts and Benjamin Coolman.

United States Attorney for the Southern District of New York, Jay Clayton, announced today that JOSEPH MALVASIO, a/k/a “Joe Cohen,” and GREGG MARCUS, a/k/a “Gregg Pierce,” were convicted of wire fraud and conspiracy to commit wire fraud in connection with a years-long advance-fee scheme through which they defrauded hundreds of victims of at least approximately $18 million.  MALVASIO and MARCUS were found guilty following a two-week trial before U.S. District Judge Jesse M. Furman. 

“Joseph Malvasio and Gregg Marcus perpetrated an advance-fee scheme whose victims were defrauded into paying millions of dollars for loans the defendants never intended to make,” said U.S. Attorney Jay Clayton.  “The victims needed these loans to buy property and build businesses. But the defendants simply charged upfront fees and pocketed their victims’ money—approximately $18 million. This Office is committed to rooting out fraud and holding those responsible accountable.”

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

From at least in or about March 2017 through at least in or about August 2023, MALVASIO and MARCUS operated an advance-fee scheme that defrauded hundreds of victims of approximately $18 million.  MALVASIO and MARCUS operated this fraudulent scheme through their ownership and operation of a business called Global Capital Partners Fund LLC (“GCPF”).  MALVASIO and MARCUS falsely represented that GCPF was a legitimate business that would provide loans to individuals who were interested in funding for private commercial projects.  Instead, MALVASIO and MARCUS defrauded victims, collecting thousands of dollars in fees from each victim without intending to issue a loan. MALVASIO also committed the same scheme using two other entities, called Harbor Equity and Commercial Private Equity.  

*                *                *

MALVASIO, 68, of Fort Lauderdale, Florida, and Bridgehampton, New York, and MARCUS, 60, of Bay Harbor Islands, Florida, were each convicted of one count of wire fraud and one count of conspiracy to commit wire fraud, each of which carries a maximum sentence of 20 years in prison.  MALVASIO was also convicted, separately, of a second count of wire fraud.

The maximum potential sentences in this case are prescribed by Congress and provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge. Sentencing is scheduled for October 8, 2026.

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

This case is being handled by the Office’s General Crimes Unit.  Assistant U.S. Attorneys Georgia V. Kostopoulos, Patrick J. Gallagher, Adabelle U. Ekechukwu, Jaclyn Delligatti, Micah F. Fergenson, and Daniel G. Nessim are in charge of the prosecution, with assistance from Paralegal Specialists Saadhana Jakka and Myrnette Millington.

United States Attorney for the Southern District of New York, Jay Clayton, announced today that NATHAN AUSTAD, a/k/a “Snoopy,” was sentenced to 18 months in prison for his role in a scheme to hack user accounts on a fantasy sports and betting website (the “Betting Website”) and sell access to those accounts, resulting in losses of hundreds of thousands of dollars to the users.  On December 12, 2025, AUSTAD pled guilty to one count of conspiring to commit computer intrusion before U.S. District Judge Ronnie Abrams, who imposed today’s sentence.

"Nathan Austad and his co-defendants hacked an online betting website to compromise the accounts of over 60,000 users by purchasing their already stolen credentials on the darkweb and utilizing their previous passwords from other websites,” said U.S. Attorney Jay Clayton.  “The defendants acknowledged the federal investigation into their conduct while they were committing their crimes, even having the hubris to say the FBI could not do anything about it.  They were wrong.  Austad’s prison sentence today demonstrates the commitment of the DOJ, the FBI, and all our federal partners to protecting our on-line markets.”

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

On or about November 18, 2022, AUSTAD and others launched a “credential stuffing attack” on the Betting Website.  During a credential stuffing attack, a cyber threat actor collects stolen credentials, or username and password pairs, obtained from other large-scale data breaches of other companies, which can often be purchased on the darkweb.  The threat actor then systematically attempts to use those stolen credentials to obtain unauthorized access to accounts held by the same user with other companies and providers, in order to compromise accounts where the user has maintained the same password.  Here, in connection with the attack on the Betting Website, AUSTAD and his coconspirators made a series of attempts to log into the Betting Website user accounts using a large list of stolen credentials.

AUSTAD and his coconspirators successfully compromised approximately 60,000 user accounts at the Betting Website (the “Victim Accounts”) through the credential stuffing attack.  In some instances, AUSTAD and his coconspirators were able to add a new payment method of their own on the account (i.e., to a newly added financial account belonging to the hacker) and then use it to withdraw all the existing funds in the Victim Account to themselves, thus stealing the funds in each affected Victim Account.  Using this method, AUSTAD and others stole approximately $600,000 from approximately 1,600 Victim Accounts on the Betting Website for themselves.

Access to the Victim Accounts were also sold on various websites that traffic in stolen accounts, which are frequently referred to as “Shops.”  AUSTAD directly controlled and profited from his own shop, which was named after the character Snoopy from the Peanuts comic strip.  A photo of AUSTAD’s Shop website with victim companies redacted is below:

On or about December 2, 2022, AUSTAD messaged about the existence of this investigation, “everyone shouldve been prepared for this before cashing out lol,” and a coconspirator replied, “lol fbi can’t do shit.”  On or about May 19, 2023, AUSTAD messaged about the existence of this investigation, “like we didnt know the risk when we started lol . . . everyone knows their committing fraud.”

AUSTAD also controlled cryptocurrency accounts that received cryptocurrency worth approximately $465,000, including proceeds of his crimes.

AUSTAD is the third defendant to be sentenced in this investigation.  On January 31, 2024, U.S. District Judge Lewis A. Kaplan sentenced Joseph Garrison to 18 months in prison.  On April 16, 2026, U.S. District Judge Naomi Reice Buchwald sentenced Kamerin Stokes, a/k/a “TheMFNPlug,” to 30 months in prison.

*               *                *

In addition to the prison term, AUSTAD, 21, of Farmington, Minnesota, was sentenced to three years of supervised release and ordered to pay $463,684.48 in forfeiture and $1,327,061 in restitution.

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

The case is being prosecuted by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Kevin Mead and Micah Fergenson are in charge of the prosecution.

United States Attorney for the Southern District of New York, Jay Clayton, announced today that HIRAM CARRERO was sentenced to 66 months in prison for setting fire to a man who was sleeping on a New York City subway car.  CARRERO previously pled guilty to arson on March 5, 2026, and was sentenced today by U.S. District Judge Lewis J. Liman.

“Setting fire to another person is a breathtaking, horrific, and unconscionable crime,” said U.S. Attorney Jay Clayton.  “Thanks to first responders and the women and men of the NYPD and the FDNY, the victim’s life was saved, and a horrific tragedy was averted.  Subway safety is front of mind for our Office, the NYPD, and our federal partners.  Today’s sentence demonstrates that anyone who terrorizes New Yorkers on the subway or anywhere else will face swift justice.”

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

In the early morning hours of December 1, 2025, CARRERO boarded a New York City subway car at the 34th Street – Penn Station subway stop.  He picked up a piece of paper (depicted in the screenshot below) and used it to set fire to a man asleep on the train.  CARRERO stepped back onto the platform as the doors closed, leaving the victim locked inside the car to burn as the train departed.

Video from inside the train car shows that as the train traveled north towards the next station, the fire flared up, engulfing the victim’s legs and a portion of the train car in flames.  When the train arrived at 42nd Street – Times Square, the victim emerged, burning from the train (depicted in a screenshot below).

Minutes later, first responders at the station rushed to extinguish the flames.  The victim was transported to the hospital in critical condition after sustaining life-threatening injuries from the fire.

*               *                *

In addition to his prison sentence, CARRERO, 19, of New York, New York, was sentenced to three years of supervised release and ordered to pay restitution.

Mr. Clayton praised the outstanding investigative work of the Bureau of Alcohol, Tobacco, Firearms and Explosives, the New York City Police Department and the New York City Fire Department Fire Marshals.

The case is being handled by the Office’s General Crimes Unit.  Assistant U.S. Attorney Cameron Molis is in charge of the prosecution.

United States Attorney for the Southern District of New York, Jay Clayton, and the Commissioner of the New York City Police Department (“NYPD”), Jessica S. Tisch, announced the return of a 10-count Indictment charging ANDREW WILKINSON, a/k/a “Steppa,” with convincing and enticing three minor female victims to engage in unlawful sexual activity with him, filming a sexually explicit video of a 15-year-old girl (“Minor Victim-1”), and drugging and sexually assaulting 17-year-old and 16-year-old girls (“Minor Victim-2” and “Minor Victim-3,” respectively).  The case is assigned to U.S. District Judge Colleen McMahon.  WILKINSON was arraigned on the Indictment before U.S. Magistrate Judge Ona T. Wang earlier today.

“As alleged, Andrew Wilkinson, a registered sex offender and serial predator, used social media to target vulnerable girls so he could drug them, sexually assault them, and film his abuse,” said U.S. Attorney Jay Clayton.  “Thankfully, Wilkinson’s illicit conduct was brought to light, and he will now have to answer to these serious charges.  Our Office, along with our federal partners and the NYPD, are making a whole-of-government effort to rid our streets of sexual predators.  That is what New Yorkers want.  That is what we are delivering.  The sexual assault of minors and the production and distribution of child pornography are too prevalent.  I urge all New Yorkers to assist us in ridding our streets of predators.  If you have been a victim of the alleged sexual abuse perpetrated by Wilkinson—or if you know anything about his alleged crimes or think you’ve experienced something similar—we encourage you to contact [email protected] or 212-637-0076.”

“This defendant, who is already a registered sex offender, allegedly used social media to lure underage girls to an unlicensed business for free tattoos and then drugged, raped, and recorded sexually explicit videos of them,” said NYPD Commissioner Jessica S. Tisch.  “This horrific behavior—especially the abuse of minors—has no place in our city, and thanks to the relentless work of our NYPD investigators and law enforcement partners, this predator is being held accountable.  We will continue to work with the U.S. Attorney’s Office for the Southern District of New York to protect survivors of sexual assault and ensure justice is served in this case.” 

As alleged in the Indictment and statements made in Court:(1)

WILKINSON drugged, sexually assaulted, and recorded sexual encounters with minor female victims. WILKINSON, who was 34 years old and a registered sex offender, operated and advertised an unlicensed tattoo service and used his tattoo service as a means by which to gain access to minor victims to sexually abuse.  WILKINSON met and communicated with his victims primarily on social media platforms and utilized those platforms to convince his victims to travel to an apartment in the Bronx where he drugged, sexually assaulted, and filmed sexually explicit videos of them.  WILKINSON drugged a 16-year-old girl and sexually abused her while she was physically incapacitated.

Between at least in or about December 2024 and May 2025, WILKINSON repeatedly sent promotional messages offering free tattoos to Minor Victim-1, who was 14, and tried to convince Minor Victim-1 to meet him in person.  On or about January 27, 2025, after Minor Victim-1 turned 15, WILKINSON convinced Minor Victim-1 to visit him, where he used a cellphone to record a sexually explicit video depicting Minor Victim-1. 

In or around May 2025, WILKINSON met a second victim, who was 17 years old, and convinced Minor Victim-2 to travel from Long Island to the Bronx to obtain a tattoo.  While in the Bronx, WILKINSON drugged and sexually assaulted Minor Victim-2.

On or about July 23, 2025, WILKINSON persuaded a third victim, who was 16 years old, to travel to the Bronx where WILKINSON told Minor Victim-3 that he would provide a free tattoo if she played and won three card games.  WILKINSON provided psilocin psychedelic mushrooms, methamphetamine, and an unidentified beverage to Minor Victim-3, causing her to lose consciousness.  While Minor Victim-3 was impaired and unconscious, WILKINSON raped and sexually assaulted Minor Victim-3.

If you have been victimized by WILKINSON, who utilized the Instagram account “@tattzbysteppa,” among others,  or have any additional information about his alleged illegal behavior, or if you’ve seen something similar, please contact the U.S. Attorney’s Office for the Southern District of New York at 212-637-0076 or reach out to us at [email protected] and reference this case.

*                *               *

WILKINSON, 36, of the Bronx, New York, is charged with one count of sexual exploitation of a minor, which carries a mandatory minimum sentence of 15 years in prison; three counts of coercion and enticement of a minor to engage in unlawful sexual activity, which carries a minimum sentence of 10 years in prison; three counts of committing a felony offense involving a minor as a registered sex offender, which carries a mandatory minimum sentence of 10 years in prison which must run consecutively to the other sex offenses; one count of distribution of a controlled substance, which carries a maximum sentence of 20 years in prison; one count of distribution of a controlled substance with intent to commit rape, which carries a maximum sentence of 20 years in prison; and one count of distribution of a controlled substance to a minor, which carries a maximum sentence of 40 years in prison. 

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

Mr. Clayton praised the outstanding investigative work of the NYPD, the Special Agents, Task Force Officers, the Digital Forensics Unit, and the Complex Analytics and Social Media Enhancement Team at the New York/New Jersey High Intensity Drug Trafficking Area from the U.S. Attorney’s Office for the Southern District of New York. Mr. Clayton also thanked the Bronx District Attorney’s Office, the Connecticut State’s Attorney Office for the Judicial District of Ansonia/Milford, the Derby Police Department, the U.S. Marshals Service for the Southern District of New York, and the U.S. Customs and Border Protection for their assistance.

The case is being handled by the Office’s Narcotics Unit. Assistant United States Attorney Dana R. McCann is in charge of the prosecution.

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

1. ^

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

United States Attorney for the Southern District of New York, Jay Clayton, announced that CHASE HARRIS pled guilty to participating in a conspiracy to commit money laundering based on his role in laundering proceeds from an international technology-support fraud scheme that targeted elderly victims and resulted in the theft of more than $1.2 million from approximately 25 known victims across the United States.  In connection with today’s resolution, the Government is immediately recovering $282,376 in restitution that will be used to compensate victims.  HARRIS pled guilty today before U.S. District Judge Philip M. Halpern and is scheduled to be sentenced on October 29, 2026. 

“Chase Harris profited from a scheme that preyed on seniors by stoking and exploiting their fear,” said U.S. Attorney Jay Clayton.  “After his co-conspirators extracted money from their victims, Harris laundered that money and sent it to India.  Today’s plea, together with Harris’s restitution of over $1.2 million for victims, reflects this Office’s commitment to protecting the most vulnerable among us.”

According to the Information, plea agreement, and statements made in public court proceedings:

From at least in or about November 2023 through at least in or about July 2024, HARRIS participated in an IT fraud scheme targeting elderly victims throughout the United States.  As part of the scheme, HARRIS’s co-conspirators identified elderly victims and caused pop-up ads to appear on their computers, falsely informing them that their computers had been infected with a virus.  At times, HARRIS’s co-conspirators posed as federal agents and threatened their victims with baseless criminal charges.  Amid their coercive demands, the co-conspirators told victims that they had to pay for IT services to resolve these fraudulent issues, directing victims to send handwritten checks to various businesses, including several owned or controlled by HARRIS—including CSH Management LLC, C4H Management LLC, and S2J Consulting LLC.  However, no services were ever provided. 

After receiving checks from the victims, HARRIS transferred most of the proceeds from the scheme, totaling more than $1.2 million, to an India-based company operated by one of his co-conspirators.  In return, HARRIS kept a portion of the stolen funds as a fee.  While discussing the profitability of the scheme with HARRIS, one of his co-conspirators told him, “We can make millions [i]n [a] [j]iffy.”

*                *                *

HARRIS, 36, of Keller, Texas, pled guilty to one count of conspiracy to commit money laundering, which carries a maximum sentence of 20 years in prison.  HARRIS also agreed to forfeit all proceeds from the offense and make restitution to victims in the amount of $1,240,847.99.  

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

“Mr. Clayton praised the outstanding investigative work of the Federal Bureau of Investigation's Hudson Valley White Collar Crime Task Force and the Orange County District Attorney's Office in this investigation. 

This case is being handled by the Office’s White Plains Division.  Assistant U.S. Attorneys Reyhan Watson and Timothy Deal are in charge of the prosecution.

United States Attorney for the Southern District of New York, Jay Clayton, announced that ANDREW NGUYEN, a former officer in the New York City Police Department (“NYPD”), was sentenced to 90 months in prison for conspiring to solicit and receive bribes, conspiring to distribute narcotics, and possessing a firearm in connection with the conspiracy to distribute narcotics, in connection with his role as an NYPD officer.  NGUYEN previously pled guilty on January 29, 2026, before U.S. District Judge Analisa Torres, who imposed today’s sentence.

“Andrew Nguyen repeatedly abused his position of public trust by soliciting and accepting tens of thousands of dollars in bribe payments,” said U.S. Attorney Jay Clayton.  “In exchange, he helped the leader of a drug trafficking organization, including by transporting kilograms of dangerous drugs, providing armed protection, and using an NYPD police car and equipment to conduct and document a fake car stop and seizure.  In short, Nguyen endangered the very community that he swore an oath to protect.  The greatest police department in the world does not accept corruption in its ranks, and this Office was proud to partner with them to root it out.  Today’s sentencing sends a message from the NYPD and the DOJ: corruption has no place in the world’s greatest police force.”  

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

For approximately three years, between at least in or about 2020 and at least in or about November 2023, NGUYEN used his position as a police officer in the NYPD to solicit and accept tens of thousands of dollars in bribe payments in exchange for assisting another individual (“CC-1”) with the operation of CC-1’s drug trafficking enterprise.  For example, NGUYEN transported drugs, including approximately eight kilograms of cocaine, for CC-1 while NGUYEN was armed with a firearm, including NGUYEN’s NYPD-authorized off-duty firearm, which NGUYEN planned to use to protect CC-1 if violence occurred. While transporting those drugs, NGUYEN also carried his NYPD credentials and an NYPD parking placard, which NGUYEN planned to use to evade arrest in the event he was pulled over by other members of the NYPD. Overall, NGUYEN, who was at all relevant times an officer in the NYPD, accepted more than $30,000 in bribe payments from CC-1 (and solicited tens of thousands of dollars in additional bribes) in connection with NGUYEN’s participation in CC-1’s drug trafficking enterprise.

*                 *                 *

In addition to his prison term, NGUYEN, 41, of Harriman, New York, was sentenced to three years of supervised release.

Mr. Clayton praised the outstanding work of the Federal Bureau of Investigation and the NYPD’s Internal Affairs Bureau. 

The case is being handled by the Office’s Public Corruption Unit and Narcotics Unit.  Assistant U.S. Attorneys Matthew J. King and Jonathan E. Rebold are in charge of the prosecution.

The Justice Department today announced the unsealing of a five-count complaint charging Reda Mazen Rida Sabassi, 38, of San Diego, California, with terrorism, sanctions-evasion, wire fraud, money laundering, and false statement charges in connection with his efforts to divert funds raised through purported charitable campaigns to Hamas and for personal use. Sabassi was arrested in San Diego yesterday and presented before U.S. Magistrate Judge Steve B. Chu in the Southern District of California.

“As alleged in the complaint, the defendant exploited the barbaric acts of terror perpetrated on October 7, 2023, to attract donors to his fraudulent ‘humanitarian’ causes,” said Assistant Attorney General for National Security John A. Eisenberg. “He allegedly raised hundreds of thousands of dollars through this scheme, which he then funneled to Hamas to help finance that group’s terror and violence and to line his own pockets. As demonstrated by today’s charges, NSD will investigate and prosecute those who fund terrorism.”

“From within the United States, Reda Sabassi is alleged to have solicited and diverted funds to the known foreign terrorist organization, Hamas, which committed the brutal October 7, 2023, massacre” said U.S. Attorney Jay Clayton for the Southern District of New York. “Hamas promotes attacks against the U.S. and has murdered dozens of Americans through acts of terror. Our arrest of Reda Sabassi demonstrates our whole-of-government commitment to prosecute those who provide financial support to a malign terrorist regime that hates America.”

“The defendant allegedly claimed to be raising money for charity but was actually funding the terrorist organization Hamas and also lining his own pockets,” said Assistant Director Donald Holstead of the FBI’s Counterterrorism Division. “The FBI will use all our authorities to put a stop to those who seek to support the violent actions carried out by organizations like Hamas. Today’s announcement should serve as a stark reminder that the FBI and our partners on the Joint Terrorism Task Forces will remain vigilant in our effort to prevent terrorism as well as hold terrorists, and those who provide support to terrorist organizations, accountable for their actions.”

“As alleged, Reda Sabassi raised hundreds of thousands of dollars to fund the death and tragedy Hamas seeks to carry out,” said Assistant Director in Charge James C. Barnacle Jr. of the FBI New York Field Office. “Alongside our federal partners, the FBI New York Joint Terrorism Task Force continues to aggressively eradicate fundraisers financing terrorist organizations, and hold accountable those behind the campaign.”

According to the allegations contained in the complaint, Harakat al-Muqawamah al-Islamiyya, commonly known as Hamas, is a terrorist organization that was founded in 1987, and has been designated as a foreign terrorist organization (FTO) by the United States since 1997. From its inception, Hamas’s stated purpose has been to create an Islamic Palestinian state throughout Israel by eliminating the State of Israel through violent holy war, or jihad. Hamas also promotes attacks against the United States and its citizens, and over more than two decades, Hamas has murdered and injured dozens of Americans as part of its campaign of violence and terror. On Oct. 7, Hamas committed its most violent, large-scale terrorist attack to date (the “October 7 Hamas Massacres”) when Hamas sent more than 2,000 armed fighters into farms and towns in southern Israel, where they carried out the massacres of over a thousand people and the kidnappings of more than 200 others. 

Reda Mazen Rida Sabassi has publicly supported Hamas online and has raised money for Hamas using online donation platforms. For example, Sabassi created an hour-long propaganda video of the October 7 Hamas Massacres and then posted that video to at least two of his social media accounts, including a few months after the October 7 Hamas Massacres and again on the two-year anniversary of the terrorist attacks. 

Since at least in or about 2022, Sabassi has used his social media accounts, crowdfunding websites, and his putative charity called Ikram — The Arab Charity Foundation Inc. (Ikram) to solicit donations from around the world, including from individuals in the United States and New York. In his online fundraising campaigns, Sabassi claimed to be raising funds to provide humanitarian aid to people in Gaza; however, Sabassi was actually raising funds for Hamas. Sabassi and a co-conspirator joked privately that they should name the fundraiser after Hamas’s al-Qassam Brigades, before agreeing to use Sabassi’s Ikram. Sabassi worked with the Hamas fundraising organization Gaza Now and other co-conspirators to operate these online fundraisers and to send funds to Hamas.*** Between in or about December 2023 and in or about February 2024, Sabassi raised a total of approximately $600,000 through online fundraising campaigns, from which Sabassi sent approximately $116,000 to a Hamas member and attempted to convert approximately $382,000 of the cash he raised into cryptocurrency to send to Hamas through Gaza Now.

Sabassi is charged with (i) conspiring to provide material support to Hamas, a foreign terrorist organization, which carries a maximum penalty of 20 years in prison; (ii) conspiring to violate the International Emergency Economic Powers Act, which carries a maximum penalty of 20 years in prison; (iii) conspiring to commit wire fraud, which carries a maximum penalty of 20 years in prison; (iv) conspiring to commit money laundering, which carries a maximum penalty of 20 years in prison; and (v) false statements, which carries a maximum penalty of five years in prison.

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

U.S. Attorney Clayton praised the outstanding efforts of the FBI’s New York Joint Terrorism Task Force and U.S. Customs and Border Protection. Mr. Clayton also thanked the FBI’s San Diego Joint Terrorism Task Force; the Counterterrorism Section and the Counterintelligence and Export Control Section of the Department of Justice’s National Security Division for their assistance with this investigation.

This case is being handled by the Office’s Illicit Finance & Money Laundering Unit and the National Security and International Narcotics Unit. Assistant U.S. Attorneys Jennifer N. Ong, Ben Arad, Sarah L. Kushner, and Juliana N. Murray for the Southern District of New York are in charge of the prosecution, with assistance from Trial Attorney Andrew Briggs of the Counterterrorism Section and Acting Deputy Chief Sean Heiden of the Counterintelligence and Export Control Section.

The charges in the complaint are merely accusations. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

1. ***

    On March 27, 2024, the United States Department of the Treasury, Office of Foreign Assets Control (“OFAC”) designated Gaza Now and two of SABASSI’s co-conspirators as Specially Designated Global Terrorists (“SDGTs”) pursuant to Executive Order 13224 for being key financial facilitators involved in fundraising for Hamas.

United States Attorney for the Southern District of New York, Jay Clayton, Assistant Attorney General for National Security, John A. Eisenberg, Assistant Director in Charge of the Counterterrorism Division of the Federal Bureau of Investigation (“FBI”), Donald Holstead, and Assistant Director in Charge of the New York Field Office of the FBI, James C. Barnacle, Jr., announced the unsealing of a five-count Complaint charging REDA MAZEN RIDA SABASSI with terrorism, sanctions-evasion, wire fraud, money laundering, and false statement charges in connection with his efforts to divert funds raised through purported charitable campaigns to Hamas and for personal use.  SABASSI was arrested in San Diego yesterday and presented before U.S. Magistrate Judge Steve B. Chu in the Southern District of California.

“From within the United States, Reda Sabassi is alleged to have solicited and diverted funds to the known foreign terrorist organization, Hamas, which committed the brutal October 7, 2023, massacre,” said U.S. Attorney Jay Clayton.  “Hamas promotes attacks against the U.S. and has murdered dozens of Americans through acts of terror.  Our arrest of Reda Sabassi demonstrates our whole-of-government commitment to prosecute those who provide financial support to a malign terrorist regime that hates America.”

“As alleged in the complaint, the defendant exploited the barbaric acts of terror perpetrated on October 7, 2023, to attract donors to his fraudulent ‘humanitarian’ causes,” said Assistant Attorney General for National Security John A. Eisenberg. “He allegedly raised hundreds of thousands of dollars through this scheme, which he then funneled to Hamas to help finance that group’s terror and violence and to line his own pockets.  As demonstrated by today’s charges, NSD will investigate and prosecute those who fund terrorism.”

“The defendant allegedly claimed to be raising money for charity but was actually funding the terrorist organization Hamas and also lining his own pockets,” said Assistant Director Donald Holstead of the FBI's Counterterrorism Division.  “The FBI will use all our authorities to put a stop to those who seek to support the violent actions carried out by organizations like Hamas.  Today’s announcement should serve as a stark reminder that the FBI and our partners on the Joint Terrorism Task Forces will remain vigilant in our effort to prevent terrorism as well as hold terrorists, and those who provide support to terrorist organizations, accountable for their actions.”

“As alleged, Reda Sabassi raised hundreds of thousands of dollars to fund the death and tragedy Hamas seeks to carry out,” said FBI Assistant Director in Charge James C. Barnacle, Jr.  “Alongside our federal partners, the FBI New York Joint Terrorism Task Force continues to aggressively eradicate fundraisers financing terrorist organizations, and hold accountable those behind the campaign.”

According to the allegations contained in the Complaint:(1)

Harakat al-Muqawamah al-Islamiyya, commonly known as Hamas, is a terrorist organization that was founded in 1987, and has been designated as a foreign terrorist organization (“FTO”) by the United States since 1997.  From its inception, Hamas’s stated purpose has been to create an Islamic Palestinian state throughout Israel by eliminating the State of Israel through violent holy war, or jihad.  Hamas also promotes attacks against the United States and its citizens, and over more than two decades, Hamas has murdered and injured dozens of Americans as part of its campaign of violence and terror.  On October 7, 2023, Hamas committed its most violent, large-scale terrorist attack to date (the “October 7 Hamas Massacres”) when Hamas sent more than 2,000 armed fighters into farms and towns in southern Israel, where they carried out the massacres of over a thousand people and the kidnappings of more than 200 others. 

REDA MAZEN RIDA SABASSI has publicly supported Hamas online and has raised money for Hamas using online donation platforms.  For example, SABASSI created an hour-long propaganda video of the October 7 Hamas Massacres and then posted that video to at least two of his social media accounts, including a few months after the October 7 Hamas Massacres and again on the two-year anniversary of the terrorist attacks. 

Since at least in or about 2022, SABASSI has used his social media accounts, crowdfunding websites, and his putative charity called Ikram – The Arab Charity Foundation Inc. (“Ikram”) to solicit donations from around the world, including from individuals in the United States and New York.  In his online fundraising campaigns, SABASSI claimed to be raising funds to provide humanitarian aid to people in Gaza; however, SABASSI was actually raising funds for Hamas. SABASSI and a co-conspirator joked privately that they should name the fundraiser after Hamas’s al-Qassam Brigades, before agreeing to use SABASSI’s Ikram.  SABASSI worked with the Hamas fundraising organization Gaza Now and other co-conspirators to operate these online fundraisers and to send funds to Hamas.(2)  Between in or about December 2023 and in or about February 2024, SABASSI raised a total of approximately $600,000 through online fundraising campaigns, from which SABASSI sent approximately $116,000 to a Hamas member and attempted to convert approximately $382,000 of the cash he raised into cryptocurrency to send to Hamas through Gaza Now.

*                *                *

SABASSI, 38, of San Diego, California, is charged with (i) conspiring to provide material support to Hamas, a foreign terrorist organization, which carries a maximum penalty of 20 years in prison; (ii) conspiring to violate the International Emergency Economic Powers Act, which carries a maximum penalty of 20 years in prison; (iii) conspiring to commit wire fraud, which carries a maximum penalty of 20 years in prison; (iv) conspiring to commit money laundering, which carries a maximum penalty of 20 years in prison; and (v) false statements, which carries a maximum penalty of 5 years in prison.

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

Mr. Clayton praised the outstanding efforts of the FBI’s New York Joint Terrorism Task Force and U.S. Customs and Border Protection.  Mr. Clayton also thanked the FBI’s San Diego Joint Terrorism Task Force; the Counterterrorism Section and the Counterintelligence and Export Control Section of the Department of Justice’s National Security Division for their assistance with this investigation.

This case is being handled by the Office’s Illicit Finance & Money Laundering Unit and the National Security and International Narcotics Unit.  Assistant U.S. Attorneys Jennifer N. Ong, Ben Arad, Sarah L. Kushner, and Juliana N. Murray are in charge of the prosecution, with assistance from Trial Attorney Andrew Briggs of the Counterterrorism Section and Acting Deputy Chief Sean Heiden of the Counterintelligence and Export Control Section.

The charges 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. ^

   On March 27, 2024, the United States Department of the Treasury, Office of Foreign Assets Control (“OFAC”) designated Gaza Now and two of SABASSI’s co-conspirators as Specially Designated Global Terrorists (“SDGTs”) pursuant to Executive Order 13224 for being key financial facilitators involved in fundraising for Hamas.

United States Attorney for the Southern District of New York, Jay Clayton, and Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), James C. Barnacle, Jr., announced the unsealing of a Complaint charging CARLOS NOEL with receiving and distributing child pornography, as well as possessing child pornography.  NOEL was arrested yesterday and presented today before U.S. Magistrate Judge Andrew E. Krause in White Plains federal court. 

“As alleged, Carlos Noel exchanged approximately 100 videos of child pornography online, many involving infants and prepubescent minors, and discussed sexually abusing another individual’s one-year-old niece,” said U.S. Attorney Jay Clayton.  “Every New Yorker and every American loathes the exploitation of children.  Together with our partners, we will deploy every resource to relentlessly get sexual predators off our streets and bring to justice those who prey on our children.  If you have information to report about this or any other matter of child sexual abuse, please contact the FBI at 1-800-CALL-FBI (1-800-225-5324) or https://tips.fbi.gov.”

“Carlos Noel allegedly exchanged sexually explicit images and videos, often featuring infants, with other online users as if they were nothing more than trading cards,” said FBI Assistant Director in Charge James C. Barnacle, Jr. “The FBI Safe Street's Task Force is dedicated to eliminating sexual predators who abuse those who can't protect themselves.”

As alleged in the Complaint:

NOEL used the online messaging applications Twitter and Telegram to trade videos of child pornography, many involving infants and prepubescent minors. NOEL went by the Twitter name “XavierThotAli” and the Telegram name “xavierthotal1 (X Games).”  Among other individuals, NOEL traded child pornography with the Telegram user “L33YA1,” who filmed herself sexually abusing her one-year-old niece.  During their exchange of messages, NOEL and L33YA1 discussed their mutual interest in sexually explicit images of minors and further sexually abusing L33YA1’s one-year-old niece.   

If you are a victim of NOEL or have any information concerning NOEL, please call 1-800-CALL-FBI (1-800-225-5324) or you can report a tip online at tips.fbi.gov.  A photo of the defendant is below. 

*                *                *

NOEL, 35, of New City, New York, is charged with receipt and distribution of child pornography, which carries a mandatory minimum sentence of five years in prison and a maximum sentence of 20 years in prison, and possession of child pornography, which carries a maximum sentence of 20 years in prison. 

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

Mr. Clayton praised the outstanding work of the FBI Westchester Safe Streets Task Force and thanked FBI Philadelphia for their assistance.

This case is being handled by the Office’s White Plains Division.  Assistant U.S. Attorney Shaun E. Werbelow is in charge of the prosecution.

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

United States Attorney for the Southern District of New York, Jay Clayton, and Special Agent in Charge of the New York Enforcement Division of the Drug Enforcement Administration (“DEA”), Farhana Islam, announced today the unsealing of an Indictment charging MARK DYGDON and RODRIGO CASTRO in connection with the defendants’ distribution of gamma-butyrolactone (“GBL”) throughout the New York City area.  The case is assigned to U.S. District Judge Margaret M. Garnett. 

“As alleged, Mark Dygdon and Rodrigo Castro conspired to import and distribute millions of doses of gamma-butyrolactone in Midtown Manhattan and around the New York region,” said U.S. Attorney Jay Clayton.  “Even one dose of GBL, also commonly known as a so-called date rape drug, can be lethal; Dygdon and Castro are accused of flooding Midtown with tons of this liquid poison.  As the charges in this case show, together with our law enforcement partners, we will relentlessly pursue those who commit drug crimes and will prosecute them to the fullest extent of the law.”

“The seizure of multiple tons of gamma-butyrolactone, is not merely a chemical seizure, it is the prevention of countless tragedies that may have otherwise occurred,” said DEA New York Enforcement Division Special Agent in Charge Farhana Islam.  “GBL is a dangerous substance on its own, and can also be converted into GHB.  Both are powerful depressants that are often used in drug facilitated sexual assaults.  By removing this massive quantity from the supply chain, the DEA and our partners disrupted a significant threat to public safety, and prevented harm to countless people who might otherwise have been victimized.  This indictment reflects the commitment we have with our partners in targeting those trafficking drugs and precursor chemicals into our communities.”

As alleged in the Indictment, other court filings, and statements made during court proceedings:(1)

From at least in or about August 2023 through at least in or about June 2026, DYGDON and CASTRO conspired to distribute GBL throughout the New York City area.  To date, the charged conspiracy has imported more than approximately seven U.S. tons of GBL between on or about August 2023 and today, or the equivalent of millions of individual doses of GBL.

As part of the investigation, the DEA New York Enforcement Division seized 2.4 tons of GBL, a chemical often times attributed to sexual assaults. 

*               *                *

DYGDON, 48, and CASTRO, 34, both of New York, New York, are each charged with one count of conspiracy to distribute GBL, which carries a maximum sentence of 20 years in prison. 

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

Mr. Clayton praised the outstanding investigative work of the DEA.

This case is being handled by the Office’s Narcotics Unit.  Assistant U.S. Attorney Rebecca R. Delfiner 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 Indictment, and the description of the Indictment set forth herein, constitute only allegations, and every fact described should be treated as an allegation.

United States Attorney for the Southern District of New York, Jay Clayton announced that MATTHEW BLAKE MORROW-WU, a/k/a “Blake Wu,” a/k/a “Blake Ho,” a/k/a “Blake Morrow,” a/k/a “Matthew Wu,” a/k/a “Matthew Ho,” a/k/a “Matthew Blake Morrow,” was sentenced today to 160 months in prison by U.S. District Judge Alvin K. Hellerstein for perpetrating a scheme to defraud a Manhattan architecture firm during the COVID-19 pandemic, after which he obstructed justice and pled from prosecution.  On April 28, 2025, MORROW-WU pled guilty to conspiracy to commit wire fraud and mail fraud, substantive wire fraud and mail fraud, impersonation of a federal officer, falsification of records, and obstruction of justice.  

“Morrow-Wu, a recidivist, preyed on a small business during the height of the COVID-19 pandemic, receiving hundreds of thousands of dollars in fraudulent proceeds,” said U.S. Attorney Jay Clayton.  “When he was caught, Morrow-Wu then tried to cover up his crimes and fled from prosecution.  Today’s sentence should make clear to fraudsters that there are significant consequences for their crimes.” 

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

Between approximately 2020 and January 2023, MORROW-WU defrauded a Manhattan architecture firm (“Firm-1”) and its owners of nearly $400,000 through fraudulent check deposits and credit card transactions.  MORROW-WU carried out his scheme by using inside information obtained from Firm-1, which he used to steal money from Firm-1 and its clients, including by depositing Firm-1’s funds directly into his own bank accounts and accruing tens of thousands of dollars in fraudulent charges on Firm-1’s credit cards. 

This scheme was the latest in MORROW-WU’s lengthy history of fraud, including prior convictions for identity theft, check fraud, credit card fraud, passport fraud, and obstruction of justice. In addition to these convictions, MORROW-WU—despite not being a licensed attorney—misappropriated the state bar license of an attorney with a similar name, which he used to fraudulently obtain legal employment and to fraudulently incorporate various law offices. 

MORROW-WU also undertook significant efforts to conceal his fraudulent scheme, including by forging correspondence by Firm-1 and using his fake law practices as cover.  Moreover, in October 2022, MORROW-WU sent the victims a forged target letter purporting to be from the U.S. Attorney for the Southern District of New York, which threatened the victims with criminal prosecution for committing fraud. 

MORROW-WU was arrested and charged with fraud offenses in January 2023.  In February 2025, while on bail pending trial, MORROW-WU submitted to the Court a false letter from a purported doctor claiming, inaccurately, that MORROW-WU had metastatic cancer, in an effort to delay his then-upcoming trial. Thereafter, MORROW-WU was charged with obstruction offenses and, after failing to appear for a scheduled court conference, fled to California, where he was apprehended by law enforcement. 

*                *                *

In addition to the prison term, MORROW-WU, 42, of Jersey City, New Jersey, was sentenced to 3 years of supervised release, ordered to forfeit $406,788.08, and ordered to pay $197,965.38 in restitution.        

Mr. Clayton praised the outstanding investigative work of the Special Agents of the United States Attorney’s Office for the Southern District of New York and the U.S. Postal Inspectors of the U.S. Postal Inspection Service, and thanked the U.S. Marshals Service and the Solano County Sheriff’s Office for their assistance with the apprehension of MORROW-WU.

The prosecution of this case is being handled by the Office’s General Crimes Unit.  Assistant U.S. Attorneys Jerry J. Fang, Michael R. Herman, Henry L. Ross, and Angela Zhu are in charge of the prosecution.

United States Attorney for the Southern District of New York, Jay Clayton, Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), James C. Barnacle, Jr., and Commissioner of the New York City Police Department (“NYPD”), Jessica S. Tisch, announced today the unsealing of an Indictment charging LENYN TORIBIO and WELFY ESPINAL with interstate stalking resulting in death and conspiracy to commit interstate stalking resulting in death in connection with the April 13, 2025, murder of Jeremy Ortega in a residential neighborhood in the Bronx. ESPINAL was arrested this morning in New Jersey and was presented before U.S. Magistrate Judge Jennifer E. Willis, who ordered him detained.  TORIBIO remains at large.  The case has been assigned to U.S. District Judge Jennifer L. Rochon.

“As alleged, Lenyn Toribio and Welfy Espinal intentionally surveilled and tracked Jeremy Ortega before he was fatally shot in front of his own home—over little more than a bag of diamond jewelry,” said U.S. Attorney Jay Clayton.  “New Yorkers deserve to live in neighborhoods free of gun violence.  This Office will stop at nothing to hold accountable those who inflict violence on others.” 

“As alleged, the stalking and killing of an innocent victim by Lenyn Toribio and Welfy Espinal is horrifying,” said FBI Assistant Director in Charge James C. Barnacle, Jr.  “Along with our local partners, the FBI will relentlessly pursue depraved individuals who threaten the safety of our citizens.”

“These defendants orchestrated a scheme to place a GPS tracking device on their victim’s car and followed him for days, ultimately leading to his death,” said NYPD Commissioner Jessica S. Tisch. “Despite attempts to evade law enforcement by using a stolen license plate from a parked car, NYPD investigators worked tirelessly to identify, arrest, and bring those responsible to justice. I am thankful to our partners at the FBI and the U.S. Attorney’s Office for the Southern District of New York for their hard work in holding these criminals accountable.”   

According to the allegations in the Indictment and other public filings:

From at least March 2025 through April 13, 2025, TORIBIO and ESPINAL—and other co-conspirators—agreed to, and in fact did, engage in a scheme to surveil Ortega using a GPS tracking device with the intent to rob him, ultimately killing him.

On or about March 28, 2025, TORIBIO activated a GPS tracking device subscribed in his own name.  A few days later, ESPINAL adhered that GPS tracker (the “Tracker”) to Ortega’s vehicle as it was parked outside of his residence in the Bronx. The next day, TORIBIO and ESPINAL went to a particular nightclub in upper Manhattan, where Ortega was also located, wearing various items of diamond jewelry.

Less than 10 days later, beginning on or about April 12, 2025, TORIBIO and ESPINAL surveilled Ortega as he traveled to a restaurant in midtown Manhattan, and then they traveled to his neighborhood to conduct surveillance of the area before the murder.  TORIBIO and ESPINAL departed the area before returning to Ortega’s neighborhood, where they positioned themselves in anticipation of his arrival. Just over an hour later, Ortega parked in front of his residence and exited his car.  Moments after he arrived home, he was chased, shot repeatedly, and robbed of a bag containing his diamond jewelry. In the hours after the murder, the Tracker was recovered from the underside of Ortega’s car.

At different points on the night of the murder, TORIBIO and ESPINAL used multiple vehicles, as well as a license plate stolen from an uninvolved vehicle parked near the George Washington Bridge, to attempt to avoid detection and apprehension by law enforcement.

*                *                *

TORIBIO, 27, of New York, New York, and ESPINAL, 25, of the Bronx, New York, are each charged with one count of interstate stalking resulting in death and aiding and abetting the same, which carries a maximum sentence of life in prison, as well as one count of conspiracy to commit interstate stalking, which carries a maximum sentence of five years in prison.

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

Mr. Clayton praised the outstanding investigative work of the NYPD, including law enforcement officers from the 45th Precinct and Bronx Homicide Squad, and the Special Agents and Task Force Officers from the FBI’s Violent Threat Initiative.

The case is being handled by the Office’s Violent Organizations and Crime Unit.  Assistant U.S. Attorney Kathryn Wheelock is in charge of the prosecution.

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

Deputy United States Attorney for the Southern District of New York, Sean S. Buckley, announced today that S. KENNETH LEECH II, the former Chief Investment Officer of Western Asset Management Company (“WAMCO”), pled guilty to obstructing justice by giving false and misleading testimony to the United States Securities and Exchange Commission (“SEC”) in connection with an investigation into LEECH’s fraudulent scheme to favor certain clients at the expense of others.  LEECH pled guilty today before U.S. District Judge Gregory H. Woods. 

“Leech willfully and intentionally gave false and misleading testimony to the SEC in an effort to obstruct an investigation into his fraudulent scheme to favor certain clients at the expense of others,” said Deputy U.S. Attorney Sean S. Buckley.  “Investment managers, like Leech, are entrusted by the SEC and the public at large to comply with their duty to be honest to regulators and fair to their clients.  Today’s plea reflects the commitment of this Office and its law enforcement partners to protecting everyday investors—in New York City and abroad—from investment advisers who violate their legal commitments and seek to deceive clients for their gain or the gain of others.” 

As alleged in the Indictment, Superseding Information, and other public filings in this case: 

Between 2021 and October 2023, LEECH committed fraud and abused the trust placed in him by clients of the investment-management firm WAMCO.  LEECH engaged in a criminal scheme commonly known as cherry-picking to compensate for losses in his marquee investment strategy by assigning trades that performed well during their first day into client accounts associated with that investment strategy, and assigning trades that performed poorly over their first day into the accounts of other clients, who were not aware that LEECH was causing them losses to favor others.  LEECH’s victims included institutional and retail investors who entrusted LEECH to manage their savings and pension plans.  Over the course of his criminal scheme, LEECH allocated trades with net first-day gains of at least approximately $600 million to his favored strategy and clients, and allocated trades with net first-day losses of at least approximately $600 million to strategies and clients to whom he owed an equal fiduciary duty.

In an effort to obstruct the investigation of that fraudulent scheme, LEECH testified before the SEC that he knew where he planned to allocate trades at the time he placed them.  The facts showed differently.  LEECH owed a fiduciary duty to all of his clients.  But between 2021 and October 2023, LEECH improperly engaged in a scheme to delay his trades in order to allocate them in a manner that benefitted some of his clients, to the detriment of others.  LEECH’s scheme defrauded clients for whom he was serving a registered financial advisor.  

*                *               *

LEECH, 72, of Pasadena, California, pled guilty to one count of obstructing justice, which carries a maximum sentence of five years in prison. 

The maximum potential sentence in this case is prescribed by Congress and provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.  LEECH is scheduled to be sentenced on September 21, 2026. 

Mr. Buckley praised the outstanding work of the Federal Bureau of Investigation.  Mr. Buckley also expressed appreciation for the assistance of the U.S. Securities and Exchange Commission. 

This case is being handled by the Office’s Securities and Commodities Fraud Task Force.  Assistant U.S. Attorneys Thomas S. Burnett and Peter J. Davis and Special Assistant U.S. Attorney Lindsey Keenan are in charge of the prosecution.

United States Attorney for the Southern District of New York, Jay Clayton, and the Inspector in Charge of the New York Field Office of the U.S. Postal Inspection Service (“USPIS”), Ketty Larco-Ward, announced today the unsealing of an Indictment charging CHARLES COLE with wire fraud, conspiracy to commit wire fraud, and conspiracy to commit securities fraud.  COLE was presented this morning in the Western District of North Carolina.  The case has been assigned to U.S. District Judge Vernon S. Broderick.

“Fraud is fraud, whether in our public markets or our private markets,” said U.S. Attorney Jay Clayton.  “Our private markets are essential engines of growth and ingenuity, and this Office will purse vigorously those who abuse securities markets—public or private, venture, growth, mid-cap or large-cap.  As alleged, Charles Cole built a fiction of wealth using fake bank records, sham correspondence, and a fraudulent bank website, then used that fiction to obtain hundreds of millions of shares with no intention of paying for them.”

“Mr. Cole allegedly defrauded an unsuspecting company through a series of lies and misrepresentations,” said USPIS Inspector in Charge Ketty Larco-Ward.  “The hard work from our Postal Inspectors that led to this indictment shows the U.S Postal Inspection Service's commitment to protecting individuals and companies from being defrauded.”

As alleged in the Indictment:

From June 2024 through March 2026, COLE perpetrated a scheme to fraudulently obtain at least 239 million shares from Infinite Reality, now known as Napster.  As part of that scheme, COLE, and others acting at his direction, repeatedly lied to Infinite Reality about his ability to pay for the shares—fabricating bank records, creating sham correspondence, and establishing a fake website to mirror that of a foreign bank—to deceive Infinite Reality into believing that COLE had billions of dollars he was prepared to invest in the company.  Based on those misrepresentations, Infinite Reality issued shares to COLE and entities he controlled.  But COLE, who had no intention of paying for the shares, never invested in Infinite Reality.  Instead, he used his fraudulently obtained shares as collateral to obtain or try to obtain loans from third parties, fabricated bank records to acquire still more shares of Infinite Reality based on further misrepresentations, and persisted in his efforts to deceive Infinite Reality until it ultimately rescinded the shares it had issued to COLE and his entities.

*                *                *

COLE, 57, of Mooresville, North Carolina, is charged with one count of wire fraud, which carries a maximum sentence of 20 years in prison; one count of conspiracy to commit wire fraud, which carries a maximum sentence of 20 years in prison; and one count of conspiracy to commit securities fraud, which carries a maximum sentence of five years in prison.

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

Mr. Clayton praised the outstanding work of USPIS and the Iredell County Sheriff’s Office.  Mr. Clayton further thanked the U.S. Securities and Exchange Commission.  

This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Courtney L. Heavey, David J. Robles, and Justin V. Rodriguez 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 constitutes only allegations and every fact described should be treated as an allegation.

United States Attorney for the Southern District of New York, Jay Clayton, and Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), James C. Barnacle, Jr., announced today the unsealing of an Indictment charging JABARI CLARKE in connection with a series of gunpoint robberies in Mount Vernon and New Rochelle, New York.  CLARKE was arrested today and presented in White Plains federal court before U.S. Magistrate Judge Victoria Reznik, who ordered him detained.

“As alleged, Jabari Clarke carried out a spree of gunpoint robberies of gas stations and convenience stores,” said U.S. Attorney Jay Clayton.  “If you use a gun to rob a store, you should expect federal charges and to be off the streets—that’s the message and the reality New Yorkers want and deserve.”

“Jabari Clarke allegedly committed gunpoint robberies threatening the safety of the general public and terrorizing innocent civilians,” said FBI Assistant Director in Charge James C. Barnacle, Jr.  “The FBI’s Westchester Safe Street’s Task Force continues to target gun violence plaguing our communities.”

As alleged in the Indictment:

Between May and June of 2025, CLARKE robbed four gas stations and convenience stores in Mount Vernon and New Rochelle.  In each of these robberies, CLARKE or his accomplices brandished firearms and stole cash before fleeing.  Through these gunpoint robberies, CLARKE stole thousands of dollars of cash.

*                *                *

CLARKE, 22, of New Rochelle, New York, is charged with one count of conspiracy to commit Hobbs Act robbery and four counts of Hobbs Act robbery, each of which carries a maximum sentence of 20 years in prison.  CLARKE is also charged with four counts of brandishing a firearm in furtherance of a crime of violence, each of which carries an additional mandatory minimum sentence of seven years in prison that must be served consecutively to any other prison terms imposed. 

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

Mr. Clayton praised the efforts of the FBI, the Mount Vernon Police Department, and the New Rochelle Police Department in connection with this investigation.              

The prosecution is being handled by the Office’s White Plains Division. Assistant U.S. Attorneys Justin L. Brooke and Ioannis D. Drivas 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.

Haji Najibullah, 50, of Afghanistan, also known as “Najibullah Naim,” also known as “Abu Tayeb,” also known as “Atiqullah,” also known as “Nesar Ahmad Mohammad,” was sentenced to 42 years in prison and five years of supervised release for terrorism charges based on his role in the hostage taking of an American journalist and two Afghan nationals in Afghanistan and Pakistan in 2008 and 2009, and his leadership of Taliban fighters who carried out attacks on U.S. servicemembers in Afghanistan between 2007 and 2009, resulting in the deaths of American soldiers and other victims. On April 25, 2025, Najibullah pleaded guilty to hostage taking and providing material support for acts of terrorism resulting in death. Today’s sentence was imposed by U.S. District Judge Katherine Polk Failla. 

“Those who harm Americans and engage in acts of terrorism will be hunted down and brought to justice, no matter how long it takes,” said Acting Attorney General Todd Blanche. “As a Taliban commander, Najibullah supported brutal terrorist attacks that killed American servicemembers and orchestrated the savage hostage-taking of an American journalist and Afghan civilians. Today’s sentence delivers justice for the victims and their families.”

“This former Taliban commander led fighters who committed acts of terrorism that resulted in the killing of U.S. servicemembers and engaged in hostage-taking, and now he will pay the price for his brutal crimes,” said FBI Director Kash Patel. “The men and women of the FBI will not forget when Americans are killed or taken hostage by terrorists. We will find you no matter where you are and work with our partners to bring you to justice.”

“Najibullah commanded Taliban fighters responsible for enforcing the Taliban’s ruthless reign of terror, including fighters who carried out the 2008 attack that killed three U.S. servicemembers and their interpreter,” said Assistant Attorney General for National Security John A. Eisenberg. “However incomplete, today’s sentence delivers long‑awaited accountability and a measure of justice to the families of the victims.”

“Haji Najibullah, a former Taliban commander, is a convicted terrorist whose conduct resulted in the brutal hostage taking of innocent civilians and the killing of U.S. servicemembers in Afghanistan,” said U.S. Attorney Jay Clayton for the Southern District of New York. “He caused unimaginable harm to the victims of his crimes and their loved ones. Today’s sentence sends a clear message that there will be dire consequences for those who aim to harm Americans and our brave military personnel through acts of terror. Our Office, and our dedicated partners in law enforcement, will continue to investigate, prosecute, and bring to justice terrorists around the world.” 

As reflected in the charging instruments, court filings, and statements in the public record:

Starting in or around October 2001, as a result of the U.S. and NATO-led invasion of Afghanistan following the September 11, 2001 terrorist attacks, the Taliban — a militant Islamist organization that provided safe harbor to some of the world’s most dangerous terrorists, including Osama bin Laden —engaged in a deadly insurgency campaign aimed at killing U.S. servicemembers and their allies and terrorizing civilians. As part of that campaign of jihadist violence, the Taliban conducted numerous suicide bombings, targeted killings, assassinations, improvised explosive device (IED) attacks, paramilitary ambushes, and hostage takings against military personnel and civilians.

Between in or around 2007 and 2009, Najibullah served as a Taliban commander in Afghanistan’s Wardak Province, which borders Kabul. During that time, Taliban fighters under his command were prepared to and did carry out deadly attacks against American and NATO troops and their Afghan allies, using, among other things, (i) suicide bombers, (ii) automatic weapons, (iii) IEDs, and (iv) rocket-propelled grenades (RPGs) and other anti-tank weapons and explosives, including against U.S. military helicopters. Najibullah proudly spoke about the brutality of the attacks that he and his men were prepared to conduct, including by stating that his men were “ready to die” and “put on a belt and blow themselves up if we ask them.”   

On or about June 26, 2008, Taliban fighters under Najibullah’s command ambushed and attacked a U.S. military convoy in the vicinity of Wardak Province, Afghanistan, with IEDs, RPGs, and automatic weapons, killing three U.S. Army servicemembers: Sergeants First Class Matthew L. Hilton and Joseph A. McKay and Sergeant Mark Palmateer, as well as their Afghan interpreter. Several other servicemembers were also injured in the attack. Najibullah later claimed responsibility for the attack, telling multiple individuals that his men carried out the attack and that it resulted in the deaths of U.S. servicemembers. A few months later, he and fighters under his command attacked and destroyed an Afghan National Police outpost using automatic weapons and rockets, reportedly killing three Afghan police officers. 

Najibullah’s campaign of terror also was directed at civilians. On or about Nov. 10, 2008, Najibullah and other Taliban fighters kidnapped an American New York Times journalist (Hostage-1) and two Afghan nationals traveling with Hostage-1 at gunpoint in Afghanistan. For the next approximately seven months, Najibullah held the hostages captive in the Taliban-controlled tribal areas of Pakistan, under the constant watch of guards armed with machineguns. Najibullah and his co-conspirators forced the hostages to make ransom calls and proof of life videos, intended to extort ransom payments and the release of Taliban prisoners by the United States Government, and during which the hostages emotionally pleaded for their lives. In one such video, Najibullah forced Hostage-1 to say, with a machinegun pointed at his head, “If you don’t help me, I will die. Now, the key is in your hand. . . . If you do not meet their demands, you will be responsible for my killing, not the Taliban. Please help me, please have mercy on me. Do not shed my blood. Please, save me. I want to go home.”  Eventually, the hostages were able to escape and return to their families. 

Mr. Clayton 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. He also thanked the New York and New Jersey Port Authority Police, the Department of Defense, and the Counterterrorism Section of the Department of Justice’s National Security Division for their assistance with this investigation, as well as the Ukrainian authorities and the Office of International Affairs of the Justice Department’s Criminal Division for their assistance in the arrest and transfer of the defendant.

This prosecution is being handled by the U.S. Attorney’s Office for the Southern District of New York’s National Security and International Narcotics Unit. Assistant U.S. Attorneys Sam Adelsberg, Jacob H. Gutwillig, and David J. Robles are in charge of the prosecution, with assistance from Trial Attorney Jennifer Burke of the Department of Justice’s Counterterrorism Section of the National Security Division.

United States Attorney for the Southern District of New York, Jay Clayton, announced today that GIOVANNI PENNETTA, the manager of a Manhattan-based investment adviser and private equity firm, was sentenced to four years in prison for committing wire fraud by running a scheme to fraudulently induce multiple investment clients to part with millions of dollars in exchange for economic exposure to shares of non-public companies.  PENNETTA pled guilty on March 5, 2026, and was sentenced today by U.S. District Judge Jed S. Rakoff.

“Falsely promising access to sought-after pre-IPO shares is fraud,” said U.S. Attorney Jay Clayton.  “The pre-IPO market is a securities market just like the public markets, and there is no place for fraud in any securities market.  This Office and our law enforcement partners are watching and will continue to protect investors, no matter the market.”

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

Over a period of roughly six years, PENNETTA, the manager of a Manhattan-based investment adviser and private equity firm, engaged in a scheme to defraud investors who had entrusted him with millions of dollars to access shares of private companies.  PENNETTA induced investors to contribute capital to his private equity fund by promising them economic exposure to shares of pre-IPO companies.  In reality, PENNETTA did not have access to the shares he promised, and the investment interests he sold did not provide the exposure he had guaranteed.  Instead, PENNETTA misappropriated more than $10 million in investor money, moving much of it to his personal bank account.

*                *                *

In addition to the prison term, PENNETTA, 51, of New York, New York, and Italy, was ordered to pay restitution in the amount of $11,928,266.25 and forfeiture in the amount of $12,546,279.86, representing proceeds from his illegal scheme.

Mr. Clayton praised the outstanding work of the Federal Bureau of Investigation.  Mr. Clayton also expressed appreciation for the assistance of the U.S. Securities and Exchange Commission.  

This case is being handled by the Office’s Securities and Commodities Fraud Task Force.  Assistant U.S. Attorneys Alexandra N. Rothman and Samuel P. Rothschild are in charge of the prosecution.

United States Attorney for the Southern District of New York, Jay Clayton, Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), James C. Barnacle, Jr., and Commissioner of the New York City Police Department (“NYPD”), Jessica S. Tisch, announced today the unsealing of a three-count Indictment charging JASON KHAN with sex trafficking offenses.  KHAN was arrested this morning in the Northern District of New York and will be presented this afternoon before U.S. Magistrate Judge Jennifer E. Willis.  

“As alleged, Jason Khan lured his victims in under the lucrative promise of being a foot model, before he repeatedly and violently sexually assaulted and raped them,” said U.S. Attorney Jay Clayton.  “We commend the victims for their courage in coming forward, and we urge anyone else who has been a victim of Khan, or knows anything about his alleged crimes, to do the same.  Our investigation is ongoing.”  

“Jason Khan allegedly operated a website to exploit multiple women’s employment aspirations and lure them to hotel rooms before brutally raping them,” said FBI Assistant Director in Charge James C. Barnacle, Jr.  “The FBI-NYPD Human Trafficking Task Force continues to target sexual predators who abuse women.”

“This defendant lured women to hotel rooms under the false pretense of offering employment opportunities, and then raped and sexually assaulted them,” said NYPD Commissioner Jessica S. Tisch.  “This horrific behavior has no place in our city, and we will not allow predators to prey on vulnerable women.  The NYPD will always protect survivors of sexual assault and work to stop the deception, exploitation, and abuse of traffickers.  I am thankful to the men and women of the NYPD, our partners at the FBI, and the U.S. Attorney’s Office for the Southern District of New York for their tireless work to bring this perpetrator to justice.” 

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

From at least 2019 to 2021, KHAN, who resides primarily in New York City and Albany, operated the foot fetish website FootPadNYC.com.  KHAN used his foot fetish website to lure and recruit victims to hotel rooms under the pretense of providing them with job opportunities as foot models.  As depicted in the below image, the “Employment” section for KHAN’s website sought to attract foot models with the promise of “get[ting] paid to have your feet worshipped.”  

KHAN and others working with him then scheduled meetings with aspiring “foot models” in Manhattan hotel rooms.  When the aspiring models showed up to be interviewed by KHAN, he sexually assaulted or raped them.

On at least three occasions, KHAN deployed this playbook: scheduling interviews with women who were seeking professional opportunities as foot models and using the promise of this additional income to lure them to Manhattan hotel rooms.  Once in the hotel room, KHAN raped or sexually assaulted the women—penetrating two of the victims vaginally and, among other things, forcibly putting the third victim’s feet on his penis.  Each victim expressed her lack of consent to the sexual activity, but her non-consent was ignored by KHAN.  Each of the victims reported her assault to law enforcement and others, and two of the victims performed rape kits in a hospital in the aftermath of their rapes. 

If you have been victimized by KHAN in any way, or have any additional information about his alleged illegal behavior, please call the FBI at 212-384-2700, reach out to us at [email protected], or fill out this questionnaire.  KHAN is depicted below.

*                *                *

KHAN, 47, of Albany and New York, New York, is charged with three counts of sex trafficking by force, fraud, or coercion, each of which carries a maximum sentence of life in prison and a mandatory minimum sentence of 15 years in prison. 

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

Mr. Clayton praised the outstanding investigative work of the FBI-NYPD Child Exploitation and Human Trafficking Task Force in New York, as well as the assistance of FBI Albany and the Manhattan District Attorney’s Office. 

This case is being handled by the Office’s Civil Rights Unit in the Criminal Division.  Assistant U.S. Attorneys Sam Adelsberg, Lisa Daniels, and Remy Grosbard 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 constitutes only allegations and every fact described should be treated as an allegation.

United States Attorney for the Southern District of New York, Jay Clayton, Acting Attorney General for the United States, Todd Blanche, Assistant Attorney General for National Security, John A. Eisenberg, Director of the Federal Bureau of Investigation (“FBI”), Kash Patel, and Assistant Director in Charge of the New York Field Office of the FBI, James C. Barnacle, Jr., announced today that HAJI NAJIBULLAH, a/k/a “Najibullah Naim,” a/k/a “Abu Tayeb,” a/k/a “Atiqullah,” a/k/a “Nesar Ahmad Mohammad,” was sentenced to 42 years in prison for terrorism charges based on NAJIBULLAH’s role in the hostage taking of an American journalist and two Afghan nationals in Afghanistan and Pakistan in 2008 and 2009, and his leadership of Taliban fighters who carried out attacks on U.S. servicemembers in Afghanistan between 2007 and 2009, resulting in the deaths of American soldiers and other victims.  On April 25, 2025, NAJIBULLAH pled guilty to hostage taking and providing material support for acts of terrorism resulting in death. Today’s sentence was imposed by U.S. District Judge Katherine Polk Failla. 

“Haji Najibullah’s conduct resulted in the brutal hostage taking of innocent civilians and the killing of U.S. servicemembers in Afghanistan,” said U.S. Attorney Jay Clayton.  “Najibullah caused unimaginable harm to the victims of his crimes and their loved ones.  Today’s sentence demonstrates again that those who seek to terrorize Americans will face justice.”

“Those who harm Americans and engage in acts of terrorism will be hunted down and brought to justice, no matter how long it takes,” said Acting Attorney General Todd Blanche.  “As a Taliban commander, Najibullah supported brutal terrorist attacks that killed American servicemembers and orchestrated the savage hostage-taking of an American journalist and Afghan civilians.  Today’s sentence delivers justice for the victims and their families.”

“Najibullah commanded Taliban fighters responsible for enforcing the Taliban’s ruthless reign of terror, including fighters who carried out the 2008 attack that killed three U.S. servicemembers and their interpreter,” said Assistant Attorney General for National Security John A. Eisenberg.  “However incomplete, today’s sentence delivers long‑awaited accountability and a measure of justice to the families of the victims.”

“This former Taliban commander led fighters who committed acts of terrorism that resulted in the killing of U.S. servicemembers and engaged in hostage-taking, and now he will pay the price for his brutal crimes,” said FBI Director Kash Patel.  “The men and women of the FBI will not forget when Americans are killed or taken hostage by terrorists.  We will find you no matter where you are and work with our partners to bring you to justice.”

“Former Taliban commander Haji Najibullah's acts of terror are horrific,” said FBI Assistant Director in Charge James C. Barnacle, Jr.  “Najibullah is responsible for the deaths of U.S. servicemembers and the hostage taking of an American journalist.  This sentencing demonstrates the FBI New York Joint Terrorism Task Force's relentless pursuit of an overseas terrorist and our commitment to delivering justice for our brave DOW partners whose families have been irreparably harmed by the defendant's actions.” 

As reflected in the charging instruments, court filings, and statements in the public record:

Starting in or around October 2001, as a result of the U.S.- and NATO-led invasion of Afghanistan following the September 11, 2001, terrorist attacks, the Taliban—a militant Islamist organization that provided safe harbor to some of the world’s most dangerous terrorists, including Usama bin Laden—engaged in a deadly insurgency campaign aimed at killing U.S. servicemembers and their allies and terrorizing civilians.  As part of that campaign of jihadist violence, the Taliban conducted numerous suicide bombings, targeted killings, assassinations, improvised explosive device (“IED”) attacks, paramilitary ambushes, and hostage takings against military personnel and civilians.

Between in or around 2007 and 2009, NAJIBULLAH served as a Taliban commander in Afghanistan’s Wardak Province, which borders Kabul.  During that time, Taliban fighters under NAJIBULLAH’s command were prepared to and did carry out deadly attacks against American and NATO troops and their Afghan allies, using, among other things, (i) suicide bombers, (ii) automatic weapons, (iii) IEDs, and (iv) rocket-propelled grenades (“RPGs”) and other anti-tank weapons and explosives, including against U.S. military helicopters.  NAJIBULLAH proudly spoke about the brutality of the attacks that he and his men were prepared to conduct, including by stating that his men were “ready to die” and “put on a belt and blow themselves up if we ask them.”    

For example, on or about June 26, 2008, Taliban fighters under NAJIBULLAH’s command ambushed and attacked a U.S. military convoy in the vicinity of Wardak Province, Afghanistan, with IEDs, RPGs, and automatic weapons, killing three U.S. Army servicemembers: Sergeants First Class Matthew L. Hilton and Joseph A. McKay, and Sergeant Mark Palmateer, and their Afghan interpreter.  Several other servicemembers were also injured in the attack.  NAJIBULLAH later claimed responsibility for the attack, telling multiple individuals that his men carried out the attack and that it resulted in the deaths of U.S. servicemembers.  A few months later, NAJIBULLAH and fighters under his command attacked and destroyed an Afghan National Police outpost using automatic weapons and rockets, reportedly killing three Afghan police officers. 

NAJIBULLAH’s campaign of terror also was directed at civilians.  On or about November 10, 2008, NAJIBULLAH and other Taliban fighters kidnapped an American New York Times journalist (“Hostage-1”) and two Afghan nationals traveling with Hostage-1 at gunpoint in Afghanistan. For the next approximately seven months, NAJIBULLAH held the hostages captive in the Taliban-controlled tribal areas of Pakistan, under the constant watch of guards armed with machineguns.  NAJIBULLAH and his co-conspirators forced the hostages to make ransom calls and proof-of-life videos, intended to extort ransom payments and the release of Taliban prisoners by the United States Government, and during which the hostages emotionally pleaded for their lives.  In one such video, NAJIBULLAH forced Hostage-1 to say, with a machinegun pointed at his head, “If you don’t help me, I will die.  Now, the key is in your hand. . . . If you do not meet their demands, you will be responsible for my killing, not the Taliban. Please help me, please have mercy on me. Do not shed my blood.  Please, save me.  I want to go home.”  Eventually, the hostages were able to escape and return to their families.  

*                 *                *

In addition to the prison term, NAJIBULLAH, 50, of Afghanistan, was sentenced to five years of supervised release. 

Mr. Clayton 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.  He also thanked the New York and New Jersey Port Authority Police, the Department of Defense, and the Counterterrorism Section of the Department of Justice’s National Security Division for their assistance with this investigation, as well as the Ukrainian authorities and the Office of International Affairs of the Justice Department’s Criminal Division for their assistance in the arrest and transfer of the defendant.

This prosecution is being handled by the Office’s National Security and International Narcotics Unit.  Assistant U.S. Attorneys Sam Adelsberg, Jacob H. Gutwillig, and David J. Robles are in charge of the prosecution, with assistance from Trial Attorney Jennifer Burke of the Counterterrorism Section.

United States Attorney for the Southern District of New York, Jay Clayton, Acting Special Agent in Charge of the New York Field Office of Homeland Security Investigations (“HSI”), Pete Gizas, and Commissioner of the New York City Police Department (“NYPD”), Jessica S. Tisch, announced the unsealing of an Indictment charging 13 defendants in connection with operating a stolen car ring involving approximately 100 stolen cars worth millions of dollars.  The defendants are charged with conspiracy to possess and sell stolen vehicles, wire fraud, and conspiracy to commit wire fraud.  Nine of the defendants were arrested today and seven were presented in Manhattan federal court before U.S. Magistrate Judge Jennifer E. Willis.  One defendant was arrested in the Western District of New York and detained.  The remaining defendant will be presented tomorrow.

“When they head to work, school, or elsewhere, New Yorkers expect to find their cars where they left them,” said U.S. Attorney Jay Clayton.  “As alleged, the thirteen defendants charged here shattered that everyday expectation.  By acquiring stolen cars, concealing their origin, and selling them to new victims, the defendants fostered a market for rampant theft, disrupted New Yorkers’ lives and security, and bilked innocent buyers out of their hard-earned dollars.  New Yorkers have no tolerance for thieves, and neither do the women and men of the SDNY and our law enforcement partners.”

“As alleged, these defendants stole dozens of vehicles from the hardworking public, altered the identification numbers and paperwork, and sold them as legitimate cars to unsuspecting families,” said HSI Acting Special Agent in Charge Pete Gizas.  “A stolen vehicle is far more than lost property; this pervasive fraud upends daily routines, drains finances, and erodes the sense of safety that New Yorkers should be able to have in their own neighborhoods.  As a lead member of the Homeland Security Task Force, HSI New York will continue to relentlessly target, disrupt, and dismantle the criminal organizations that prey on our communities and threaten our livelihoods.” 

“These 13 defendants acquired approximately 100 stolen cars worth millions of dollars and then sold them to unsuspecting buyers,” said NYPD Commissioner Jessica S. Tisch.  “This elaborate scheme laundered stolen cars through multiple deceptive and illegal tactics designed to conceal their origins and take advantage of consumers. Thanks to the efforts of our NYPD investigators, along with our partners at HSI and the U.S. Attorney’s Office for the Southern District of New York, this pipeline has been dismantled and those responsible are being held accountable.” 

As alleged in the Indictment and other public filings:

From approximately June 2024 through May 2026, the defendants and others acquired cars that had been stolen from victims in New York City, obscured the fact that those cars had been stolen, and, ultimately, sold the cars to unsuspecting buyers in New York and elsewhere.  The defendants and their co-conspirators effectively laundered these stolen cars in a variety of ways, including by covering their true Vehicle Identification Numbers (“VINs”) with new, fraudulent VINs and by replacing their federal certification labels with labels containing the new, fraudulent VINs.  The defendants and their co-conspirators also created fraudulent titles for the stolen cars; took the stolen cars for oil changes and inspections to generate new, fraudulent histories for those cars; and advertised the stolen cars on a social media marketplace.  Through these methods, the defendants and their co-conspirators acquired approximately 100 cars, worth millions of dollars, and resold them to new victims for a huge, criminal profit.

*                *                *

NORBERTO PENA BRITO, a/k/a “Real,” 40, of the Bronx, New York; WILKINS MARTINEZ VARGAS, 38, of the Bronx; NOEMI SOLANO COMPRES, 41, of the Bronx; PAULA ABAD DIAZ, a/k/a “Mayi,” 35, of Yonkers, New York; MARLIN SEGURA MARTINEZ, a/k/a “Marlin Perez,” 35, of Yonkers; ANGEL HEREDIA PEREZ, 24, of the Bronx; LUIS VARGAS SANCHEZ, 24, of the Dominican Republic; JOEL ABAD BELEN, 28, of the Bronx; LUIS BRITO CAMPUSANO, 37, of the Bronx; TOMAS LORENZO JOSE, 38, of the Bronx; YEREMY LORENZO JOSE, 37, of the Bronx; JHOLKIS MELENCIANO COLON, 23, of the Bronx; and EDUARDO PEREZ ESTRELLA, 58, of the Bronx, are each charged with one count of conspiracy to possess and sell stolen vehicles, which carries a maximum sentence of five years in prison; one count of conspiracy to commit wire fraud, which carries a maximum sentence of 20 years in prison; and one count of wire fraud, which carries a maximum sentence of 20 years in prison.

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

Mr. Clayton praised the efforts of the NYPD Auto Crime Division Major Case Team and the special agents and task force officers from the HSI New York Seaport Trade Group.

The case is being handled by the Office’s General Crimes Unit.  Assistant U.S. Attorneys Robert S. Ruff and Bridget G. Johnston 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.

United States Attorney for the Southern District of New York, Jay Clayton, and Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), James C. Barnacle, Jr., announced today the unsealing of an Indictment charging JIANQING LI, a/k/a “JQ,” an analyst at an asset manager specializing in biomedical and healthcare investments, with two counts of securities fraud.  LI was presented today before Magistrate Judge Gary Stein.  The case has been assigned to U.S. District Judge Lorna G. Schofield.

“Jianqing Li allegedly turned confidential information into more than $350,000 in illegal trading profits,” said U.S. Attorney Jay Clayton.  “Insider trading is unfair and it’s illegal.  It harms our markets and our investors.” 

“Jianqing Li’s alleged exploitation of sensitive trading information betrayed his employer and established an unfair financial advantage over the unknowing public,” said FBI Assistant Director in Charge James C. Barnacle, Jr.  “The FBI maintains its steadfast pursuit of those who abuse their positions to generate unlawful profits.”

As alleged in the Indictment:

LI made more than $350,000 in illicit profits by trading in stock and options based on material, nonpublic information he misappropriated from the investment fund where he worked. LI was an analyst at a Manhattan-based asset manager specializing in biomedical and healthcare investments, which routinely received nonpublic information from investment banks in connection with its evaluation of investment opportunities in public companies.  Rather than honor restrictions on the use of that information, LI repeatedly used inside information to trade securities for his own profit, in violation of his duties to his employer and to the sources of the information.  In particular, LI used nonpublic information about upcoming announcements that he expected would increase a company’s stock price to purchase securities for his brokerage accounts—or in the case of information he expected to negatively affect the stock price, to sell short—and then unwound his position soon after the public announcement, in each case for a profit.  To conceal his trading, LI violated his employer’s insider trading policies and code of ethics, including by not seeking preclearance for his illegal trades, not disclosing his trading or profits, and falsely certifying his compliance with those policies annually.

*                *                *

LI, 40, of New York, New York, is charged with one count of securities fraud under Title 15, which carries a maximum sentence of 20 years in prison; and one count of securities fraud under Title 18, which carries a maximum sentence of 25 years in prison.

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

Mr. Clayton praised the outstanding work of the FBI.  Mr. Clayton further thanked the U.S. Securities and Exchange Commission.  

This case is being handled by the Office’s Securities and Commodities Fraud Task Force.  Assistant U.S. Attorney Kyle A. Wirshba is in charge of the prosecution.

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

1. ^

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

United States Attorney for the Southern District of New York, Jay Clayton, Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), James C. Barnacle, Jr., and Acting Special Agent in Charge of the New York Field Office of Homeland Security Investigations (“HSI”), Pete Gizas, announced today the unsealing of an Indictment charging AKMAL RASULOV and ISKANDER SHUKUROV, both Uzbek nationals, with alien smuggling and money laundering.  RASULOV and SHUKUROV were arrested this morning. SHUKUROV was ordered detained, and RASULOV has been released on bond. The case has been assigned to U.S. District Judge J. Paul Oetken. 

“Smuggling foreign nationals into the United States is a serious crime that puts every American at risk,” said U.S. Attorney Jay Clayton.  “Human smuggling also often involves exploitation, drug trafficking, and sexual abuse.  It must be stopped.  Drug cartels, foreign terrorist organizations, and anyone else who seeks to undermine our sovereignty and security through human trafficking and smuggling will be prosecuted.”

“Akmal Rasulov and Iskander Shukurov allegedly jeopardized our country’s security by providing foreign nationals illegal entry into the United States for a hefty fee,” said FBI Assistant Director in Charge James C. Barnacle, Jr.  “Alongside our federal partners, the FBI is committed to disrupting networks attempting to infiltrate our nation's borders.”

“These charges reflect an alleged calculated effort to move people illegally into this country and wash the profits through our financial system, with no regard for the risks to our communities or our national security,” said HSI Acting Special Agent in Charge Pete Gizas.  “By arresting these defendants, we are cutting into the command structure of an alleged smuggling operation that treated our borders as a business model.  HSI New York, as a leading member of the Homeland Security Task Force, will continue to relentlessly pursue human smugglers and the money they need to operate.”

As alleged in the Indictment:

Between at least 2021 and 2025, RASULOV and SHUKUROV operated an alien-smuggling business.  RASULOV, SHUKUROV, and others charged thousands of dollars per person for each foreign national—principally citizens of Uzbekistan—in order to illegally transport them into the United States.  RASULOV, SHUKUROV, and their co-conspirators arranged for the foreign nationals to either arrive at a U.S. port of entry without prior permission to enter the United States, or sneak across a land border without the required examination or inspection by immigration officers. 

RASULOV and SHUKUROV worked with co-conspirators, including a Mexican citizen living in Mexico (“CC-1”).  RASULOV and SHUKUROV repeatedly sent money to CC-1 so that CC-1 would connect aliens and smugglers in Mexico and then facilitate the transportation of the aliens from Mexico into the United States.  RASULOV and SHUKUROV used international wire transfers to pay CC-1 for these services, including transfers from financial accounts in New York, New York. Some of the wire transfers included false information indicating that the payments were for “loan repayment” or “legal fees” to conceal the true purpose of the transactions.

*               *                *

RASULOV, 39, and SHUKUROV, 52, both of Brooklyn, New York, are each charged with conspiracy to commit money laundering, which carries a maximum sentence of 20 years in prison, and conspiracy to commit alien smuggling, which carries a maximum sentence of five years in prison.

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

Mr. Clayton praised the investigative work of the FBI and HSI.  He added that the investigation is ongoing.   

The case is being handled by the Office’s Illicit Finance and Money Laundering Unit. Assistant U.S. Attorney Josiah Pertz is 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 entirety of the Indictment and the descriptions of the Indictment set forth herein constitute only allegations, and every fact described should be treated as an allegation.

United States Attorney for the Southern District of New York, Jay Clayton, Commissioner of the New York City Police Department (“NYPD”), Jessica S. Tisch, and Special Agent in Charge of the New York Field Office of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (“ATF”), Bryan DiGirolamo, announced today the unsealing of an Indictment charging 10 defendants with participating in a years-long racketeering conspiracy as members of the violent Bronxdale/YDS gang that included multiple attempted murders, assaults, armed robberies, and other crimes between 2020 and May 2026.  Two defendants, EDWIN POZO, a/k/a “Swerv,” and SETH COLON, were arrested yesterday, and soon both will have been presented before U.S. Magistrate Judge Gary Stein, COLON yesterday and POZO today.  The eight remaining defendants, MODOU TOURAY, a/k/a “LDOT,” JEREMIAH MARTINEZ, a/k/a “JJ,” JERIMIAH MORGAN, a/k/a “Goon,” TYSHAWN MORRIS, a/k/a “YaYa,” DAMION ELLIOT, a/k/a “Upit,” DAVON BEST KELLY, a/k/a “Benz,” NYJAH WYNTER, a/k/a “Glizzy,” and RAEKWON KING, a/k/a “Buzzin,” are in custody in other jurisdictions and will be transferred to the Southern District of New York.  The case is assigned to U.S. District Judge Richard M. Berman.

“As alleged, the Bronxdale/YDS gang wreaked havoc on the residents of the Sotomayor Houses for years,” said U.S. Attorney Jay Clayton.  “With this indictment, the NYPD, ATF, and SDNY bring some measure of relief to the Sotomayor Houses residents, and the members and associates of the Bronxdale/YDS gang will face justice for their alleged crimes.  New York public housing cannot be a haven for gang activity, and the women and men of our Office are fighting every day to rid New York public housing of gun-toting, drug-dealing, violent gangs.”

“For too long, these ten defendants, members of the Bronxdale/YDS gang, treated our communities as their own violent playground,” said NYPD Commissioner Jessica S. Tisch.  “They shot a victim in the chest, slashed a rival in the neck, conspired to commit armed robberies of drug dealers, and terrorized the residents at the Sotomayor Houses.  Their criminality had no limits as they committed wire fraud and other illegal activities across New York City.  Thanks to the hard work of our NYPD investigators, alongside our partners at the ATF and the U.S. Attorney’s Office for the Southern District of New York, we are ensuring violent criminals are held accountable and keeping New Yorkers safe.” 

“Violent street gangs thrive on fear, intimidation, and the reckless use of firearms, but these charges send a clear message: those who endanger our communities will be identified, investigated, and held accountable,” said ATF Special Agent in Charge Bryan DiGirolamo.  “The success of this year-long investigation is a testament to the exceptional collaboration between the ATF-NYPD Crime Gun Enforcement Team and the United States Attorney’s Office for the Southern District of New York.  Together, we are leveraging intelligence, technology, and relentless investigative work to disrupt violent criminal networks and protect the people of New York.  ATF remains steadfast in its mission to combat violent gun crime and support our law enforcement partners in pursuing justice.”

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

From at least in or about 2020 through at least in or about May 2026, TOURAY, MARTINEZ, MORGAN, COLON, MORRIS, POZO, ELLIOT, KELLY, WYNTER, KING, and others known and unknown were members and associates of Bronxdale/YDS (short for “Youngest” or “Youngins” “Doin Shit”), a street gang and organization that operated principally in the Sotomayor Houses, a public housing development of the New York City Housing Authority (previously named the Bronxdale Houses) in the Bronx, New York. Members and associates of Bronxdale/YDS engaged in, among other activities, acts involving murder, assault, robbery, the distribution of controlled substances, and wire and bank fraud in and around the greater metropolitan area of New York City, including in the Bronx, Manhattan, and Queens, in New York counties north of New York City, and in parts of New Jersey.  In addition to being charged with participation in the alleged racketeering conspiracy, several of the defendants are charged with additional offenses, including:  

On or about May 24, 2021, MORRIS and POZO slashed a man believed to be a rival gang member with a knife, causing a large laceration on his neck.

On or about May 13, 2022, MORRIS struck a rival gang member in the head with a metal rod, causing a laceration to that rival gang member’s head.

On or about September 29, 2023, TOURAY and MORGAN used a firearm to shoot an individual, striking that individual in the chest.

From at least in or about 2020 through at least in or about 2024, TOURAY, MARTINEZ, MORGAN, ELLIOT, WYNTER, POZO, and MORRIS conspired to commit armed robberies of drug dealers in the Bronx and elsewhere.

On or about October 2, 2024, TOURAY and KELLY committed a gunpoint robbery of a rideshare driver in the Bronx.

*               *                *

A chart containing the names, charges, and minimum and maximum penalties for the defendants is set forth below. 

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

Mr. Clayton praised the outstanding investigative work of the NYPD and the ATF.  Mr. Clayton also thanked the Federal Bureau of Investigation and the Bergen County, New Jersey, Sheriff’s Office for their assistance in this investigation. 

This case is being handled by the Office’s Violent Organizations & Crime Unit.  Assistant U.S. Attorneys Brandon D. Harper and Jared D. Hoffman are in charge of the prosecution.   

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

Count One

Racketeering Conspiracy

18 U.S.C. § 1962(d)

MODOU TOURAY

TYSHAWN MORRIS

JEREMIAH MARTINEZ

JERIMIAH MORGAN

NYJAH WYNTER

DAMION ELLIOT

DAVON BEST KELLY

SETH COLON

EDWIN POZO

RAEKWON KING

Count Two

Attempted Murder and Assault with a Dangerous Weapon in Aid of Racketeering

18 U.S.C. §§ 1959(a)(3) and (a)(5), and 2

TYSHAWN MORRIS

EDWIN POZO

Count Three

Assault with a Dangerous Weapon in Aid of Racketeering

18 U.S.C. §§ 1959(a)(3) and 2

Count Four

Attempted Murder and Assault with a Dangerous Weapon in Aid of Racketeering

18 U.S.C. §§ 1959(a)(3) and (a)(5), and 2

MODOU TOURAY

JERIMIAH MORGAN

Count Five

Conspiracy to Commit Hobbs Act Robbery 

MODOU TOURAY

JEREMIAH MARTINEZ

JERIMIAH MORGAN

DAMION ELLIOT

NYJAH WYNTER

EDWIN POZO

TYSHAWN MORRIS

Count Six

Hobbs Act Robbery 

18 U.S.C. § 1951 and 2

MODOU TOURAY

JERIMIAH MORGAN

Count Seven

Firearms Offense

18 U.S.C. §§ 924(c)(1)(A)(i), (ii), and (iii), and 2

MODOU TOURAY

JERIMIAH MORGAN

Maximum: Life in prison

Minimum: 10 years in prison, which must be consecutive to any other term imposed

Count Eight

Hobbs Act Robbery 

18 U.S.C. § 1951 and 2

MODOU TOURAY

DAVON BEST KELLY

Count Nine

Firearms Offense

18 U.S.C. §§ 924(c)(1)(A)(i), and (ii), and 2

MODOU TOURAY

DAVON BEST KELLY

Maximum: Life in prison

Minimum: 10 years in prison, which must be consecutive to any other term imposed

Count Ten

Possession of Ammunition after Felony Conviction 

18 U.S.C. § 922(g)(1)

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.

United States Attorney for the Southern District of New York, Jay Clayton, Special Agent in Charge of the New York Task Force Division of the Drug Enforcement Administration (“DEA”), Christopher Roberts, and Commissioner of the New York City Police Department (“NYPD”), Jessica S. Tisch, announced today the unsealing of a Complaint charging ELVIN VILA with drug-trafficking crimes that led to three fatal overdoses.  VILA was arrested and will be presented tomorrow before U.S. Magistrate Judge Gary Stein.

“As a result of more than a million tragedies, we all have learned a simple and deeply disturbing truth: if you deal in fentanyl, you deal in death,” said U.S. Attorney Jay Clayton.  “As alleged, Elvin Vila sold fentanyl that killed three people, and he kept dealing even after his customers died from overdoses.  He now faces justice.  The women and men of the SDNY, the DEA, the NYPD, and all our tri-state area law enforcement partners are committed to holding dealers in death accountable.”  

“Today’s arrest of Elvin Vila reflects the DEA’s unwavering commitment to target those individuals responsible for pushing fentanyl into our communities and the devasting harm it causes,” said DEA New York Task Force Division Special Agent in Charge Christopher Roberts.  “Mr. Vila’s drug trafficking activities not only allegedly claimed the lives of three individuals; they also left a trail of grief and heartbreak for the families and loved ones now forced to mourn their loss.  Every life matters, and it is the DEA’s mission to hold accountable those responsible for taking them.  The victims and their families deserve justice, and together with our law enforcement partners, we will work tirelessly to ensure they receive it.”

“This defendant made a business out of selling deadly fentanyl, and his actions contributed to the fatal overdoses of three people,” said NYPD Commissioner Jessica S. Tisch.  “He put profit over people’s lives again and again.  Thanks to the tireless work of the NYPD detectives and our partners at the DEA and U.S. Attorney’s Office, he is finally out of this deadly business for good.”

According to the allegations contained in the Complaint and in materials submitted to the Court:

On dozens of occasions between 2023 and 2026, VILA was the leader of a drug-trafficking conspiracy whereby he drove from the Bronx to other locations to sell fentanyl to his customers.  VILA’s drugs caused at least three overdose deaths: (i) the death of a 57-year-old man (“Victim-1”) on or about April 16, 2025, in Stamford, Connecticut; (ii) the death of a 32-year-old woman (“Victim-2”) on or about April 25, 2025, in Port Chester, New York; and (iii) the death of a 69-year-old man (“Victim-3”) on or about January 21, 2026, in Port Chester, New York.

In the month leading up to Victim-1’s death, VILA drove to sell narcotics to Victim-1 on at least 10 occasions.  Several days after the last meeting, VILA sent Victim-1 several text messages asking if Victim-1 was “good” or “ok.”  Despite Victim-1 not responding, because Victim-1 had overdosed and died, VILA continued selling deadly fentanyl, ultimately resulting in two additional fatal drug overdoses.

Approximately one day after his last unanswered text message to Victim-1, VILA delivered narcotics to Victim-3, who shared them with Victim-2.  Approximately a week later, Victim-2 died of an overdose from the drugs that VILA distributed. 

Following Victim-2’s death, VILA continued to make deliveries of narcotics to Victim-3, including on or about January 9, 2026.  On January 21, 2026, Victim-3 died of an overdose from the drugs that VILA distributed. 

On June 4, 2026, members of law enforcement searched Vila’s house in the Bronx pursuant to a judicially authorized search warrant.  Among other things, the search revealed suspected narcotic powders; narcotics mixing and stamping equipment; numerous glassine envelopes for individual packaging; and a safe containing a gun, cash, and a ski mask.  Photographs of some of the items recovered during the search warrant are shown below.

Suspected Narcotics and Glassine Envelopes

Stamping and Mixing Equipment

Gun, Cash, and Ski Mask

*               *                *

VILA, 50, of the Bronx, New York, is charged with conspiracy to distribute narcotics resulting in death and three counts of distribution of narcotics resulting in death, all of which carry a mandatory minimum sentence of 20 years in prison and a maximum sentence of life in prison.   

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

Mr. Clayton praised the outstanding investigative work of the DEA and the NYPD.  Mr. Clayton also thanked the Port Chester Police Department, the Stamford Police Department, and the New York State Police for their invaluable assistance in this case.

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

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

1. ^

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

United States Attorney for the Southern District of New York, Jay Clayton, and 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”), Naomi Gruchacz, announced that the United States has settled a civil healthcare fraud lawsuit against COMMUNITY CARE HEALTH NETWORK, LLC, D/B/A MATRIX MEDICAL NETWORK (“MATRIX”), a health services company headquartered in Nashville, Tennessee, that contracts with Medicare Advantage Organizations (“MAOs”) to perform in-home health assessments of Medicare patients.  The settlement resolves claims that MATRIX violated the False Claim Act by causing the MAOs to submit to the Government false and invalid patient diagnoses for certain chronic conditions, thereby artificially inflating the Medicare payments the MAOs received for providing insurance coverage to patients enrolled in their plans. The Government alleges that MATRIX focused on reporting diagnoses that could lead to higher payments for its client MAOs, instead of ensuring that all of its diagnoses were appropriate and well-supported. 

Under the settlement, which was approved by U.S. District Judge Andrew L. Carter, MATRIX will pay the United States a total sum of $36.5 million.  MATRIX made extensive factual admissions in the settlement regarding its conduct, including that in numerous instances MATRIX reported certain conditions where its health assessment forms did not contain sufficient clinical information to support the diagnosis.  In connection with the settlement, MATRIX also entered into a five-year Corporate Integrity Agreement (“CIA”) with HHS-OIG.  The CIA requires MATRIX to implement numerous accountability and auditing measures.  In particular, MATRIX must conduct annual risk assessments and other monitoring, and an independent review organization will conduct compliance reviews focused on MATRIX’s systems, processes, and procedures relating to MATRIX’s risk adjustment activities and MATRIX’s services provided to Medicare Advantage plan enrollees.

“For years, Matrix generated false and invalid diagnoses for patients enrolled in Medicare Advantage plans that were later reported to the Government,” said U.S. Attorney Jay Clayton.  “Matrix advertised its ability to identify new diagnosis codes that would boost Medicare Advantage insurers’ payments, and it delivered on that promise by reporting lucrative diagnoses that frequently fell well short of meeting recognized clinical criteria.  Matrix did so to generate business for itself, at the expense of the public fisc.  New Yorkers hate fraud that drains public funds.  Why?  Because New Yorkers are smart and they know fraud involving taxpayer-funded programs costs all New Yorkers.  This Office is proud to join with the rest of the Department, including the National Fraud Enforcement Division, to hold perpetrators of fraud accountable in Medicare and other contexts.”

“Matrix manipulated Medicare managed care’s reimbursement structure for financial gain,” said HHS-OIG Special Agent in Charge Naomi Gruchacz.  “By generating unsupported and clinically invalid diagnoses, Matrix undermined the integrity of federal health care programs and put profits above patients.  This settlement demonstrates our unwavering commitment to holding entities accountable when they inflate Medicare payments through improper practices and fail to uphold the standards beneficiaries deserve.”

The Medicare Advantage program, also known as Medicare Part C, allows Medicare beneficiaries to opt out of traditional Medicare and enroll in health plans that are administered by private insurance companies known as MAOs.  The MAOs contract with the Centers for Medicare and Medicaid Services (“CMS”) to provide traditional Medicare coverage to beneficiaries enrolled in their plans in exchange for capitated payments.  CMS adjusts these capitated payments based on the health status of each beneficiary as determined through diagnoses submitted by the MAOs. Specifically, CMS uses these diagnoses, along with demographic factors, to calculate a Risk Adjustment Factor (“RAF”) score for each member and, in turn, the amount of the monthly payment it will pay the MAO for covering that member, pursuant to the Hierarchical Condition Category (“HCC”) model. In general, CMS pays insurers more for sicker beneficiaries likely to incur higher healthcare expenses and less for healthier beneficiaries.  Diagnosis codes submitted to CMS must be supported by the beneficiaries’ medical records and be accurate, complete, and truthful, based on the best knowledge, information, and belief of the MAO making the submission. 

As alleged in the Government’s Complaint:

MATRIX contracts with MAOs to conduct health assessments of Medicare Advantage plan members in their homes.  Based on these in-home assessments, MATRIX provides diagnosis codes to the MAOs for ultimate submission to CMS as part of the MAOs’ risk adjustment data.  The MAOs paid MATRIX a fee, generally in the range of $350 to $450, for each assessment.  CMS relies on this risk adjustment data, including the medical diagnosis codes, to determine the payments paid to the MAOs for each beneficiary.  As a “first-tier entity” that contracts with MAOs, MATRIX is required to certify the accuracy and truthfulness of the data it generates relating to claims for payment submitted by MAOs. 

During the period from 2014 to 2019, MATRIX knowingly caused MAOs to submit false and invalid diagnoses of the following chronic medical conditions to CMS for risk adjustment purposes: proliferative diabetic retinopathy, drug-induced polyneuropathy, rheumatoid polyneuropathy, atrial fibrillation, rheumatoid arthritis, chronic obstructive pulmonary disease, and simple chronic bronchitis (the “Invalid Diagnoses”).  MATRIX reported the Invalid Diagnoses to MAOs based on its in-home assessments even though: (a) there was not sufficient information to support the diagnoses; (b) the diagnoses did not conform with the guidelines for coding and reporting diagnoses as required by CMS; and (c) the conditions were frequently not diagnosed by any other healthcare provider who saw the beneficiary during the year in which the home visit occurred or in the preceding two years or subsequent two years.  As a result of the reporting of these Invalid Diagnoses, the MAOs obtained inflated risk adjustment payments from CMS to which they were not entitled.

MATRIX’s home visit program was designed in large part to identify additional diagnosis codes that could be reported to CMS to increase patient risk scores, and therefore the capitated payments that the MAOs received for their plan members.   MATRIX regularly recorded Invalid Diagnoses for complex conditions without performing the testing, imaging, or other diagnostic clinical steps necessary to establish those diagnoses.  The purpose of the home visits was not to treat patients’ medical conditions; indeed, MATRIX did not provide medical treatment or prescribe medications as part of the home visits.  Nor did it refer the patients to specialists for follow-up care, other than generalized suggestions that the patient follow up with their doctors. 

MATRIX marketed its services to MAOs in part by representing that the in-home assessments would allow MAOs to capture diagnoses for use in the risk adjustment process that had not been reported by the plan members’ other providers.  In marketing and other materials provided to MAOs, MATRIX advertised its ability to find and document diagnoses that were not otherwise reported by a patient’s primary care physicians and would therefore increase a patient’s risk adjustment score and the MAOs’ payments.  For example, Matrix advertised its ability to secure HCC “Lift,” meaning to make diagnoses that resulted in higher HCC disease scores and, thus, higher risk adjustment payments.  MATRIX also advertised and calculated the “increase in RAF score” from MATRIX’s assessments and estimated the amount by which the diagnoses MATRIX identified increased the risk adjustment payments received by the MAOs. 

MATRIX’s in-home assessments were typically conducted by nurse practitioners.  Based on the visit, the nurse practitioner completed an electronic, check-the-box form concerning the individual’s reported medical history and the results of a basic physical assessment.  MATRIX’s coding teams later reviewed the assessment forms and diagnoses listed and identified the applicable diagnosis codes to be sent to the MAOs for ultimate submission to CMS as part of their risk adjustment data.  Additionally, after the visits, MATRIX’s “Quality Improvement” staff reviewed the diagnoses entered to assess whether the nurse practitioner had any “missed” diagnoses, which they then urged the nurse practitioner to add.  At times, MATRIX even added diagnoses without the nurse practitioner’s signoff. 

The Invalid Diagnoses generated by the MATRIX home visits did not conform to the International Classification of Diseases (“ICD”) Official Guidelines for Coding and Reporting (the “ICD Guidelines”), as required by applicable federal regulations.  The diagnoses did not affect patient care, treatment, or management during the home visit, as required under the ICD Guidelines, and thus were ineligible for risk adjustment.  In addition, the Invalid Diagnoses were not supported by the minimal information recorded on the MATRIX assessment forms, in violation of the ICD Guidelines’ medical record documentation requirement.  

Through the operation of its home assessment program, MATRIX reported codes for thousands of Invalid Diagnoses to MAOs, which in turn submitted those codes to CMS.  Based on these unlawful false claims, the MAOs improperly received millions of dollars in risk adjustment payments from CMS, in violation of the False Claims Act.

As part of the settlement, MATRIX admitted and accepted responsibility for certain conduct alleged by the Government including the following:

• MATRIX contracted with over 30 MAOs to conduct health assessments of Medicare Part C plan members in their homes. 
• The in-home assessments were typically performed by nurse practitioners, who collected health histories and medication information, conducted physical exams, and documented diagnostic information on electronic health assessment forms.  The nurse practitioners did not provide clinical medical treatment to the plan members or prescribe medications. 
• Certain contracts with MAOs required MATRIX to, among other things, assist the MAO in “capturing Member diagnoses for use in [MAO’s] risk adjustment process” and report on the MAO’s “ROI,” or return on investment.  MATRIX calculated an MAO’s ROI based, in part, on the estimated increase in Medicare Part C reimbursements received by the MAO that was attributable to risk score increases resulting from Matrix assessments.
• MATRIX’s in-home assessments resulted in diagnoses of plan members, and the submission to CMS of resulting risk-adjusting diagnosis codes, that frequently had not been reported by any other healthcare provider who treated the plan member during the year in which the home visit occurred or during the two years before and after the calendar year in which the home visit occurred.
• In numerous instances, MATRIX reported the following conditions to MAOs where the health assessment forms did not contain sufficient clinical information to support the diagnosis: proliferative diabetic retinopathy; drug-induced polyneuropathy; rheumatoid polyneuropathy; atrial fibrillation; rheumatoid arthritis; chronic obstructive pulmonary disease; and simple chronic bronchitis. The MAOs in turn frequently submitted the diagnosis codes corresponding to those conditions to CMS for risk adjustment purposes, which often resulted in the MAOs receiving higher Medicare Part C reimbursements.

In connection with the filing of the lawsuit and settlement, the Government joined a private whistleblower lawsuit that had been filed under seal pursuant to the False Claims Act.

In a separate settlement announced today by the Civil Division of the Department of Justice and the United States Attorney’s Office for the Eastern District of Texas, DPN USA d/b/a HealthFair (“HealthFair”), a company acquired by MATRIX in 2018 that performed health assessments on mobile health care buses, and HealthFair’s prior owner Shahriah “James” Ekbatani, are agreeing to resolve separate allegations that HealthFair knowingly reported certain diagnoses to MAOs that were unsupported, unsubstantiated, and/or invalid on the basis of these mobile assessments.

*                *                *

Mr. Clayton thanked HHS-OIG for its assistance with this case.

This case is being handled by the Civil Frauds Unit within the U.S. Attorney’s Office for the Southern District of New York.  Assistant U.S. Attorneys Rachael Doud and Ilan Stein are in charge of the case.

Community Care Health Network LLC, doing business as Matrix Medical Network (Matrix), DPN USA, doing business as HealthFair (HealthFair), and Shahriah “James” Ekbatani have agreed to pay a total of $56.5 million to resolve allegations that they violated the False Claims Act (FCA) by causing the submission of false or invalid diagnosis codes to the Medicare Advantage program. Matrix will pay $36.5 million to resolve claims in a qui tam action filed in the Southern District of New York. HealthFair, which was acquired by Matrix, will pay $5 million and Ekbatani will pay $15 million to resolve claims in a qui tam action filed in the Eastern District of Texas.

“When healthcare companies report risk-adjusting diagnoses that are invalid, they siphon money from the Medicare Advantage program,” said Assistant Attorney General Brett A. Shumate of the Justice Department’s Civil Division. “The Justice Department remains vigilant in pursuing MAOs, downstream entities, and responsible individuals who do not play by the rules.”

“Patients should be able to trust that their medical providers are making, documenting, and sending diagnosis information to insurers based on accurate assessment, testing, and what is best for the patient,” said U.S. Attorney Jay R. Combs of the Eastern District of Texas. “It is a breach of trust when providers look to make more money by making their patients appear sicker than they are. Submitting unsubstantiated diagnoses increases costs to the Medicare Advantage program. This case emphasizes our District’s commitment to justice by pursuing anyone who attempts to steal through misrepresentations.”

“For years, Matrix generated false and invalid diagnoses for patients enrolled in Medicare Advantage plans that were later reported to the Government,” said U.S. Attorney Jay Clayton for the Southern District of New York. “Matrix advertised its ability to identify new diagnosis codes that would boost Medicare Advantage insurers’ payments, and it delivered on that promise by reporting lucrative diagnoses that frequently fell well short of meeting recognized clinical criteria. Matrix did so to generate business for itself, at the expense of the public fisc. New Yorkers hate fraud that drains public funds. Why? Because New Yorkers are smart and they know fraud involving taxpayer-funded programs costs all New Yorkers. This Office is proud to join with the rest of the Department, including the National Fraud Enforcement Division, to hold perpetrators of fraud accountable in Medicare and other contexts.”

“The allegations in these matters describe conduct that puts profit ahead of patients and undermines the integrity of the Medicare Advantage program,” said Acting Deputy Inspector General for Investigations Scott J. Lampert of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). “HHS-OIG will not tolerate efforts to divert taxpayer funded health care dollars for personal or corporate gain. We will continue to pursue every available enforcement avenue with our law enforcement partners to ensure that anyone who endangers federal program integrity is met with swift and robust accountability.”

The Medicare Advantage (MA) program, also known as Medicare Part C, allows Medicare beneficiaries to opt out of traditional Medicare and enroll in health plans that are administered by private insurance companies known as Medicare Advantage Organizations (MAOs). The MAOs contract with the Centers for Medicare and Medicaid Services (CMS) to provide traditional Medicare coverage to beneficiaries enrolled in their plans in exchange for capitated payments. CMS adjusts these capitated payments based on the health status of each beneficiary as determined through diagnoses submitted by the MAOs. In general, CMS pays more for sicker beneficiaries likely to incur higher healthcare expenses and less for healthier beneficiaries. Diagnosis codes submitted to CMS must be supported by the beneficiaries’ medical records and be accurate, complete, and truthful, based on the best knowledge, information, and belief of the MAO making the submission.

Matrix, headquartered in Nashville, Tennessee, is a health services company that contracts with MAOs to provide in-home assessments to MA plan beneficiaries. HealthFair, a company founded and managed by Ekbatani, operated mobile health care buses staffed by nurse practitioners and medical technicians and fitted with certain medical equipment. It contracted with MAOs in several states to provide health assessments to MA plan beneficiaries on HealthFair buses. Matrix acquired HealthFair in 2018 and shut down its operations by 2020.

The United States alleges that during the period from 2014 to 2019, Matrix knowingly caused MAOs to submit false and invalid diagnoses of the following chronic medical conditions to CMS for risk adjustment purposes: proliferative diabetic retinopathy, drug-induced polyneuropathy, rheumatoid polyneuropathy, atrial fibrillation, rheumatoid arthritis, chronic obstructive pulmonary disease, and simple chronic bronchitis (the “Invalid Diagnoses”). Matrix reported the Invalid Diagnoses to MAOs based on its in-home assessments even though: (a) there was not sufficient information to support the diagnoses; (b) the diagnoses did not conform with the guidelines for coding and reporting diagnoses as required by CMS; and (c) the conditions were frequently not diagnosed by any other healthcare provider who saw the beneficiary during the year in which the home visit occurred or in the preceding two years or subsequent two years. As a result of the reporting of these Invalid Diagnoses, the MAOs obtained inflated risk adjustment payments from CMS to which they were not entitled.

As to HealthFair and Ekbatani, the United States contends that HealthFair knowingly reported certain diagnoses to MAOs that were unsupported, unsubstantiated, and/or invalid. Specifically, from 2015 to 2017, HealthFair providers (1) made certain diagnoses (including but not limited to HIV/AIDS, metastatic cancer, and Myasthenia Gravis) without documentation establishing or confirming the existence of the condition; (2) made certain diagnoses (including but not limited to morbid obesity, rheumatoid arthritis, coagulation defect, drug dependence, major depressive disorder, and chronic obstructive pulmonary disease) solely based on patient attestation, claims history, past medical history, or medication; (3) diagnosed congestive heart failure and heart arrhythmia despite contradiction by electrocardiogram and echocardiogram results; and (4) diagnosed thrombophilia solely based on separate diagnoses of atrial fibrillation. HealthFair, which acted at the direction of Ekbatani, submitted the diagnoses to its MAO customers, and the MAOs often submitted the diagnoses to CMS for risk-adjusted payments.

The settlement with Matrix resolves claims brought under the qui tam or whistleblower provisions of the FCA by Nancy Cahill, a former employee of Matrix, in United States ex rel. Cahill v. Matrix, No. 19-CV-11153 (S.D.N.Y.). The settlements with HealthFair and Ekbatani resolve claims brought under the qui tam or whistleblower provisions of the FCA by Robert Oristaglio, Jr., D.O., who was the chief medical officer of HealthFair, in United States ex rel. Oristaglio v. Community Care Health Network, Inc., d/b/a Matrix Medical Network et al., No. 4:22-CV-00133-SDJ (E.D. Tex.). Under the FCA, private parties are permitted to sue on behalf of the government for false claims for government funds and to receive a share of the recovery. The settlements in these cases provide for Cahill to receive $7.3 million and Oristaglio to receive $3.6 million.

This year the Administration launched the Task Force to Eliminate Fraud and the National Fraud Enforcement Division to enhance the Administration’s war on fraud, waste, and abuse in federal programs. When unscrupulous actors exploit these programs for their own financial gain, they defraud the government, harm the people these programs are designed to aid and protect, and undermine American businesses that play by the rules. The Civil Division’s FCA enforcement plays a critical role in combatting such fraudulent schemes, recovering billions of dollars for the American taxpayers, and holding wrongdoers accountable. FCA matters will continue to be on the forefront of the battle against fraud, and the Civil Division’s FCA work will support and advance the mission of the Task Force to Eliminate Fraud and the National Fraud Enforcement Division.

The resolutions obtained in this matter were the result of coordinated efforts between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section, and the U.S. Attorney’s Offices for the Southern District of New York and Eastern District of Texas, with assistance from HHS-OIG.

The investigation and resolution of this matter illustrate the government’s emphasis on combating healthcare fraud. One of the most powerful tools in this effort is the FCA. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Health and Human Services at www.oig.hhs.gov/fraud/report-fraud/ or 800-HHS-TIPS (800-447-8477).

The matters were handled by Trial Attorney Samson Asiyanbi of the Justice Department’s Civil Division, Assistant U.S. Attorneys Rachael Doud and Ilan Stein of the Southern District of New York, and Assistant U.S. Attorney Kevin McClendon of the Eastern District of Texas.

The claims resolved by the settlement are allegations only and there has been no determination of liability.

Note: The settlement agreement with Matrix Medical Network can be read here, the settlement with HealthFair can be read here, and the settlement with Shahriah Ekbatani can be read here.

United States Attorney for the Southern District of New York, Jay Clayton, Acting Attorney General for the United States, Todd Blanche, United States Secretary of Homeland Security, Markwayne Mullin, Director of Joint Task Force Vulcan (“JTFV”), Jacob Warren, Commissioner of the New York City Police Department (“NYPD”), Jessica S. Tisch, and Acting Special Agent in Charge of the New York Field Office of Homeland Security Investigations (“HSI”), Pete Gizas, announced today that four members of the designated foreign terrorist organization Tren de Aragua (“TdA”), KEIBER JAEN MARTINEZ, a/k/a “Keybe,” SAMUEL GONZALEZ CASTRO, a/k/a “Klei,” a/k/a “Kley,” EFERSON MORILLO-GOMEZ, a/k/a “Jefferson,” a/k/a “Efe Trebol,” and KEINEYER IBARRA-MUJICA, a/k/a “Keiner,” each pled guilty before U.S. District Judge Denise L. Cote to two counts of murder through the use of a firearm and one count of using a firearm in furtherance of a crime of violence in connection with their participation in the May 24, 2024, murders of Claretha LaQuesha Daniels and Justin Lawless and the non-fatal shooting of a third victim (“Victim-3”), all of whom were unarmed American citizens and residents of New York City.  A fifth codefendant and member of TdA, JARWIN VALERO-CALDERON, a/k/a “La Fama,” pled guilty last week to one count of racketeering conspiracy and one count of using a firearm in furtherance of a crime of violence in connection with his participation in, among other crimes, a September 30, 2024, gunpoint carjacking in New York City.  Three additional codefendants previously pled guilty to other offenses and have been sentenced, and all eight in-custody defendants charged in the TdA prosecution before Judge Cote have now been convicted.

“As they have now admitted, these four members of Tren de Aragua entered the United States illegally and then brutally murdered Claretha LaQuesha Daniels and Justin Lawless on May 24, 2024, in the middle of a residential street in the Bronx, which resulted in another victim being shot and injured,” said U.S. Attorney Jay Clayton.  “This recent Memorial Day Sunday marked a tragic date: two years to the day that Ms. Daniels and Mr. Lawless lost their lives.  We extend our deep condolences to the family members of these victims and hope that today’s guilty pleas bring some comfort to them.  We are committed to investigating and charging all members of TdA and other international gangs who flout our immigration laws and flood our streets with guns, drugs, sex trafficking, and violence.  Today, we delivered two things every New York family wants: these four gun-toting, murderous criminals off our streets; and a message to international gangs—‘stay out of the United States.’”   

“Thanks to the hard work of our law enforcement partners and prosecutors, these four Tren de Aragua gang members will now face justice for their part in the ruthless and senseless murders of two Americans and the attempted murder of a third person in the Bronx two years ago,” said Acting Attorney General Todd Blanche.  “As a former AUSA who prosecuted violent crimes and gangs in the Bronx, this case hits home for me.  Tren de Aragua is a terrorist organization with no place and no future in the United States, and this Department of Justice will not stop until we have rooted out, dismantled, and destroyed them.”

“I’m thankful that the victims and their families finally get the justice they deserve,” said DHS Secretary Markwayne Mullin.  “Tren de Aragua is one of the most vicious gangs on planet earth.  They rape, maim, and murder for sport.  Under President Trump’s leadership, we are targeting and removing gang members from our communities and ensuring those that committed crimes in our country face justice.” 

“Although TdA started as a prison gang in Venezuela, it became a transnational criminal organization and foreign terrorist organization that gained a foothold in many cities in the United States, including New York City,” said JTFV Director Jacob Warren.  “As they have now admitted, these four TdA members killed two unarmed American citizens in the Bronx during a brutal shooting on a public street, and they will finally be held accountable for their crimes.  This case is directly in line with JTFV’s mission: a collaborative, whole-of-government, and nationwide effort to totally eliminate TdA.  To date, we have charged over 260 members and associates of TdA as part of these efforts.  We are grateful for the ongoing partnership with the U.S. Attorney’s Office for the Southern District of New York, and our law enforcement partners who worked tirelessly to investigate this case.”   

“The NYPD will not allow violent gangs to terrorize our streets and threaten our communities,” said NYPD Commissioner Jessica S. Tisch.  “These defendants, members of Tren de Aragua, viciously took two lives and shot a third victim, but thanks to our multi-agency investigation, they are now being held accountable.  I thank the NYPD investigators and our federal law enforcement partners for their tireless efforts in this case.  Together, we will continue to take down gangs, remove guns from our streets, and keep our neighborhoods safe.”

“These defendants carried out acts of cruelty and calculated violence that resulted in the cold-blooded murders of Claretha Daniels and Justin Lawless and left a third victim grievously wounded, shattering families and communities in ways that can never be fully repaired,” said HSI Acting Special Agent in Charge Pete Gizas.  “Their conduct is emblematic of the Tren de Aragua’s ruthless model of transnational gang activity, spanning the Bronx, Queens, and well beyond our borders—where extortion, human smuggling, sex trafficking, narcotics distribution, and gun violence are deployed to entrench their criminal enterprise and spread fear.  HSI New York, through the Homeland Security Task Force, will not yield an inch of authority or control to criminal street gangs that threaten the safety of our communities.”

According to the allegations contained in the Superseding Information and other public filings in this case:

TdA is a criminal organization that operated throughout New York City, including the boroughs of the Bronx and Queens, as well as internationally in Venezuela, Peru, and elsewhere.  The purposes of TdA included:

• Preserving and protecting the power and territory of TdA and its members and associates through acts involving murder, assault, robbery, other acts of violence, and threats of violence, including acts of violence and threats of violence directed at former members and associates of TdA who associated with a splinter organization known as Anti-Tren.
• Enriching the members and associates of TdA through, among other things:
• The unlawful smuggling of individuals, including young women from Venezuela, into Colombia, Peru and the U.S.;
  • The sex trafficking of young women (whom members and associates of TdA often refer to as “multadas”) who had been unlawfully smuggled into Peru and the U.S.;
• The trafficking of controlled substances, including a mixed substance called “tusi” that contains ketamine;
• And armed robberies, including carjackings.
• Keeping victims and potential victims in fear of TdA and its members and associates through threats and acts of violence.
• Promoting and enhancing TdA and the reputation and activities of its members and associates.
• Providing assistance to members and associates of TdA who committed crimes for and on behalf of TdA, such as lodging and interstate transportation for members and associates of TdA to flee prosecution.
• Protecting TdA and its members and associates from detection and prosecution by law enforcement authorities through acts of intimidation, threats, and violence against potential witnesses to crimes committed by members of TdA.
• Members and associates of TdA transported young women, again often referred to by members and associates of TdA as “multadas,” from Venezuela into Peru and the U.S. in exchange for debts that the young women would pay back to TdA by engaging in commercial sex work.  Members of TdA enforced compliance among these young women by, among other things:
• Threatening to kill the young women and their families,
  • Assaulting the young women,
• Shooting or killing the young women,
• And tracking down and kidnapping the young women who tried to flee.

Members of TdA also committed and conspired, attempted, and threatened to commit, acts of violence, including acts involving murder and assault, to protect and expand TdA’s criminal operations; resolve disputes within TdA; to retaliate against rival organizations, including Anti-Tren; and to maintain control over sex trafficking victims.  TdA members and associates also trafficked controlled substances, committed robberies, and obtained, possessed, trafficked, and used firearms and ammunition. 

On May 24, 2024, TdA members JAEN MARTINEZ, GONZALEZ CASTRO, MORILLO-GOMEZ, and IBARRA-MUJICA agreed to kill Claretha LaQuesha Daniels and Justin Lawless and to shoot Victim-3 in the vicinity of 2290 Davidson Avenue in the Bronx, New York.  JAEN MARTINEZ, GONZALEZ CASTRO, MORILLO-GOMEZ, and IBARRA-MUJICA then aided and abetted, caused, and otherwise facilitated the shooting of Daniels, Lawless, and Victim-3, which resulted in the deaths of Daniels and Lawless, and multiple non-fatal gunshot wounds to Victim-3.  Claretha LaQuesha Daniels was 44 years old, and Justin Lawless was 36 years old.

*                *                *

A chart containing the names, charges, and maximum penalties for the defendants is set forth below. 

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

Mr. Clayton praised the outstanding investigative work of Homeland Security Investigations (“HSI”), including the Field Offices in New York, Seattle, Denver, Chicago, and Hawaii, and the NYPD. He also thanked the Bronx County District Attorney’s Office, the Arapahoe County District Attorney’s Office in Colorado; the Aurora Police Department in Aurora, Colorado; Joint Task Force Vulcan; the New York/New Jersey Regional Fugitive Task Force of the U.S. Marshals Service (“USMS”); the U.S. Customs and Border Protection’s National Gang Unit and New York Human Intelligence Division; U.S. Immigration and Customs Enforcement’s New York Enforcement and Removal Operations; the Bureau of Alcohol, Tobacco, Firearms, and Explosives (“ATF”); and the New York City Crime Analysis Center at the New York/New Jersey High Intensity Drug Trafficking Area.

This case is part of Joint Task Force Vulcan (“JTFV”), which was created in 2019 to eradicate MS-13 and now expanded at the direction of the Attorney General to target Tren de Aragua.  JTFV is comprised of U.S. Attorney’s Offices across the country, including the Southern and Eastern Districts of New York; Eastern and Western Districts of North Carolina; Western District of Virginia; Southern District of Florida; Eastern District of Texas; Western District of Oklahoma; Northern District of Indiana; District of Nevada; and District of Arizona; as well as the Executive Office for U.S. Attorneys, and the Department of Justice’s National Security Division and Criminal Division.  Additionally, the FBI, Drug Enforcement Administration (“DEA”), HSI, ATF, USMS, and the Bureau of Prisons are essential law enforcement partners with JTFV.

This case is part of the Homeland Security Task Force (“HSTF”) initiative established by Executive Order 14159, Protecting the American People Against Invasion.  The HSTF is a whole-of-government partnership dedicated to eliminating criminal cartels, foreign gangs, transnational criminal organizations, and human smuggling and trafficking rings operating in the United States and abroad.  Through historic interagency collaboration, the HSTF directs the full might of United States law enforcement toward identifying, investigating, and prosecuting the full spectrum of crimes committed by these organizations, which have long fueled violence and instability within our borders.  In performing this work, the HSTF places special emphasis on investigating and prosecuting those engaged in child trafficking or other crimes involving children. The HSTF further utilizes all available tools to prosecute and remove the most violent criminal aliens from the United States.  HSTF New York comprises agents and officers from HSI, FBI, DEA, ATF, and the IRS with the prosecution being led by the United States Attorney’s Office for the Southern District of New York.

This case is being handled by the Office’s Violent Organizations and Crime Unit and Joint Task Force Vulcan.  Assistant U.S. Attorneys Jun Xiang, Kathryn Wheelock, Timothy Ly, Andrew K. Chan, and Jared Hoffman are in charge of the prosecution, with the assistance of Paralegal Specialists Ananya Sankar and Sandy Alcantara.

COUNT

CHARGE

DEFENDANTS

MAX. PENALTIES

One

(S3 Information)

Murder through the use of a firearm

18 U.S.C. §§ 924(j), and 2

KEIBER JAEN MARTINEZ,

      a/k/a “Keybe,”

SAMUEL GONZALEZ CASTRO,

      a/k/a “Klei,” 

      a/k/a “Kley,”

EFERSON MORILLO-GOMEZ,

      a/k/a “Jefferson,” 

      a/k/a “Efe Trebol,”

KEINEYER IBARRA-MUJICA, 

      a/k/a “Keiner” 

Two

(S3 Information)

Murder through the use of a firearm

18 U.S.C. §§ 924(j), and 2

KEIBER JAEN MARTINEZ,

      a/k/a “Keybe,”

SAMUEL GONZALEZ CASTRO,

      a/k/a “Klei,” 

      a/k/a “Kley,”

EFERSON MORILLO-GOMEZ,

      a/k/a “Jefferson,” 

      a/k/a “Efe Trebol,”

KEINEYER IBARRA-MUJICA, 

      a/k/a “Keiner”

Three

(S3 Information)

Firearm use, carrying, and possession

18 U.S.C. §§  924(c)(1)(A)(i), and 2

KEIBER JAEN MARTINEZ,

      a/k/a “Keybe,”

SAMUEL GONZALEZ CASTRO,

      a/k/a “Klei,” 

      a/k/a “Kley,”

EFERSON MORILLO-GOMEZ,

      a/k/a “Jefferson,” 

      a/k/a “Efe Trebol,”

KEINEYER IBARRA-MUJICA, 

      a/k/a “Keiner”

Life in prison

Mandatory consecutive sentence of 5 years in prison

One

(S2 Indictment)

Racketeering conspiracy

18 U.S.C. § 1962(d)

JARWIN VALERO-CALDERON,

     a/k/a “La Fama”

Six

(S2 Indictment)

Firearm use, carrying, and possession

18 U.S.C. §§  924(c)(1)(A)(i), and 2

JARWIN VALERO-CALDERON,

     a/k/a “La Fama”

Life in prison

Mandatory consecutive sentence of 5 years in prison

United States Attorney for the Southern District of New York, Jay Clayton, Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), James C. Barnacle, Jr., and Commissioner of the New York City Department of Investigation (“DOI”), Nadia I. Shihata, announced the unsealing of a Complaint charging JOSHUA SMITH with conspiracy to commit bribery.  SMITH was arrested today and presented before U.S. Magistrate Judge Gary Stein. 

“For years, the defendant allegedly engaged in a scheme to smuggle contraband into a juvenile detention facility in the Bronx in exchange for cash bribes,” said U.S. Attorney Jay Clayton.  “Rehabilitation of juvenile offenders is a challenge.  It is only made more difficult when corrupt staff members supply contraband.  This callous and hypocritical disregard for the rehabilitation mission calls for swift justice, including a message of deterrence.”

“Joshua Smith allegedly exploited his position of employment by the Administration of Children’s Services to traffic contraband through the Horizon Juvenile Center,” said FBI Assistant Director in Charge James C. Barnacle, Jr.  “The FBI and our law enforcement partners continue to apprehend those who undermine the law to enrich themselves while putting the youth community at risk.”

“The duty of this City Youth Development Specialist at Horizon Juvenile Center was to safeguard the young people in his care,” said DOI Commissioner Nadia I. Shihata.  “Instead, he allegedly used his access to traffic marijuana, pills, and other contraband to the young residents in exchange for thousands of dollars in bribes, according to the criminal complaint.  Let me be clear, any City employee who misuses their position, exploits those in their care, or undercuts safety will be called to account.  I thank the U.S. Attorney’s Office for the Southern District of New York and the New York Field Office of the FBI for their continued commitment and partnership in exposing wrongdoing that endangers juveniles and corrupts New York City.”

As alleged in the Complaint unsealed today in Manhattan federal court:

SMITH was employed by the Administration for Children’s Services (“ACS”) as a “youth development specialist” at Horizon Juvenile Center (“Horizon”) in the Bronx, New York.  Horizon is a secure detention facility (also known as a juvenile detention facility) for youth who are alleged or adjudicated juvenile delinquents, juvenile offenders, or adolescent offenders, and have been remanded to secure detention. From at least in or about April 2023 through at least in or about July 2025, SMITH received money in exchange for smuggling contraband into Horizon.  As part of this course of conduct, SMITH met associates of Horizon residents in the Bronx, among other places, received contraband—including, but not limited to, marijuana, tobacco, and pills—from those associates, and then transported such contraband into Horizon and delivered it to Horizon residents.  On at least some of these occasions, the Horizon residents or their associates provided SMITH with monetary bribes in exchange for SMITH agreeing to introduce contraband into Horizon.

*               *                *

SMITH, 34, of Yonkers, New York, is charged with one count of conspiracy to commit bribery, which carries a maximum sentence of five years in prison.

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

Mr. Clayton praised the outstanding investigative work of the FBI and DOI. 

The case is being handled by the Office’s Public Corruption Unit. Assistant U.S. Attorneys Lauren Phillips and Stephanie Simon are in charge of the prosecution.

The charge contained in the Complaint is merely an accusation, and the defendant is presumed innocent unless and until proven guilty.

1. ^

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

United States Attorney for the Southern District of New York, Jay Clayton, announced today that FRANCISCO ALBERTO LOPEZ REYES, a/k/a “Frank,” and EDWARD EUSTATE JIMENEZ, a/k/a “Chino,” were found guilty by a jury following a six-week trial before U.S. District Judge John P. Cronan.  LOPEZ REYES was convicted of being a principal administrator of a continuing criminal enterprise, conspiracy to distribute narcotics resulting in death, narcotics distribution, and conspiracy to commit money laundering.  EUSTATE JIMENEZ was convicted of conspiracy to distribute narcotics resulting in death and narcotics distribution.  The defendants’ conspiracy was responsible for sending fake pharmaceutical pills that actually contained fentanyl and para-fluorofentanyl, which killed a victim.   

“A unanimous jury found that Francisco Alberto Lopez Reyes and one of his deputies, Edward Eustate Jimenez, ran a massive, predatory scheme to distribute pills containing fentanyl and other drugs through fake online pharmacies, including pills that tragically killed a United States Army veteran in February 2024,” said U.S. Attorney Jay Clayton.  “For years, Lopez Reyes was a one-man opioid crisis, duping thousands of victims by distributing millions of pills through the mail from what he thought was the safety of his home in the Dominican Republic.  The pills were designed to look like real pharmaceuticals, but they actually contained deadly fentanyl and other controlled substances.  The scale of Lopez Reyes’s distribution is staggering, as is the scale of the harm his shipments brought to our communities.  A jury has now confirmed what New Yorkers know: if you deal in fentanyl, you deal in death.”   

As established during trial: 

For at least two and a half years, LOPEZ REYES ran an enterprise that distributed pills containing fentanyl, parafluorofentanyl, methamphetamine, and other controlled substances via sales through purported online pharmacies.  The pills LOPEZ REYES and his co-conspirators, including EUSTATE JIMENEZ, distributed were dyed, shaped, and designed to look indistinguishable from the prescription medications they were marketed as, including oxycodone and Adderall.  The pills were shipped to thousands of victims in all 50 U.S. states.   

In order to manufacture the pills, from his home in the Dominican Republic, LOPEZ REYES oversaw a series of pill mills—or industrial scale pill-pressing facilities—located primarily in the basements of residential buildings in the Bronx and Washington Heights.  In those mills, deputies working at LOPEZ REYES’s direction oversaw workers who mixed controlled substances with inert powders and dyes and then pressed those powders into millions of pills shaped and imprinted to match the design of the legitimate pharmaceuticals the purported online pharmacies had represented them to be. 

LOPEZ REYES’s deputies then transferred the pills to other members of the conspiracy—including EUSTATE JIMENEZ—for shipment to customers.  LOPEZ REYES sent the shippers lists of customer orders and corresponding addresses. Those lists and other records maintained by the enterprise reveal shipments of more than one million pills to victims over a two-and-a-half year period.  In addition, law enforcement officers seized another approximately 650,000 pills during the course of searches of mills and stash houses maintained by the enterprise. 

The drugs the defendants shipped were not only dangerous, but deadly.  On February 25, 2024, a 45-year-old, female veteran of the United States Army (“Victim-1”) died of acute fentanyl intoxication after taking pills purchased from one of the enterprise’s pharmacies. Although Victim-1 had ordered oxycodone, what she actually received were round, blue pills marked with an “M” on one side and a “30” on the other that were merely designed to look like oxycodone. In actuality, the pills Victim-1 received contained the lethal mix of fentanyl and para-fluorofentanyl that resulted in her death five days after their arrival through the mail on her doorstep.  

*               *                *

LOPEZ REYES, 46, of the Dominican Republic, was convicted of:  (i) continuing criminal enterprise, which carries a mandatory minimum sentence of life in prison; (ii) conspiracy to distribute narcotics resulting in death, which carries a mandatory minimum sentence of 20 years in prison and a maximum sentence of life in prison; (iii) distribution of narcotics, which carries a mandatory minimum sentence of 10 years in prison and a maximum sentence of life in prison; and (iv) conspiracy to commit money laundering, which carries a maximum sentence of 20 years in prison.    

EUSTATE JIMENEZ, 24, of Washington Heights, New York, was convicted of: (i) conspiracy to distribute narcotics resulting in death, which carries a mandatory minimum sentence of 20 years in prison and a maximum sentence of life in prison, and (ii) distribution of narcotics, which carries a mandatory minimum sentence of 10 years in prison.

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

Mr. Clayton praised the investigative work of the Homeland Security Task Force, International Narcotics and Money Laundering within the Department of Homeland Security, Homeland Security Investigations (“HSI”), which is comprised of law enforcement officers and investigators from the New York City Police Department, the New York State Police, and the Kings County District Attorney’s Office; Groups D-21 and D-25 of the New York Enforcement Division of the Drug Enforcement Administration (“DEA”); the Homeland Security Task Force, Seaport Contraband of the Department of Homeland Security, Homeland Security Investigations; the United States Postal Inspection Service (“USPIS”), New York Division, Contraband, Interdiction & Investigations Task Force, comprised of members from USPIS, NYPD Criminal Enterprise Investigations Section, and Customs and Border Protection; the Internal Revenue Service; and the United States Food and Drug Administration Office of Criminal Investigations.  Mr. Clayton also thanked the U.S. Attorney’s Office for the District of New Jersey, HSI Santo Domingo, the DEA Dominican Republic Country Office, and the U.S. Marshals Service Dominican Republic Foreign Field Office for their assistance.  The Justice Department’s Office of International Affairs worked with Dominican authorities in securing Lopez Reyes’s arrest and 2024 extradition. 

This case is being handled by the Office’s Narcotics Unit.  Assistant U.S. Attorneys Katherine Cheng, Maggie Lynaugh, Chelsea Scism, and Adam Sowlati, as well as paralegal specialists Danielle Escamilla, Sophie Keegan, and Juan Munoz, are in charge of the prosecution.

United States Attorney for the Southern District of New York, Jay Clayton, announced that JOVANNY CONCEPCION pled guilty today before U.S. District Judge Lewis J. Liman to making false statements relating to healthcare matters in connection with use of force incidents that took place within Rikers Island. 

“As he has now admitted, Jovanny Concepcion fraudulently received hundreds of thousands of dollars from New York City taxpayers by falsely claiming injuries following incidents where force was used against an incarcerated person,” said U.S. Attorney Jay Clayton.  “New Yorkers pay way too much for government services.  Our Office will continue to hold accountable those who violate public trust, especially when at the expense of personal liberties and taxpayer dollars.”

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

The New York State Workers’ Compensation Board (the “Board”) administers New York State’s no-fault workers’ compensation system, which guarantees medical care and cash benefits to people who are injured at work, including employees of the New York City Department of Correction (“DOC”).  Payments by the Board made to DOC employees are paid from the New York City Treasury. For years, CONCEPCION was employed by the DOC as a correction officer and was assigned to work at Rikers Island. During that time, CONCEPCION falsely claimed that he was injured while on duty at Rikers Island during incidents with incarcerated individuals requiring the use of force.  In total, CONCEPCION received at least $232,427.97 in benefits to which he was not entitled. 

*                *                *

CONCEPCION, 34, of New York, pled guilty to one count of making false statements related to health care matters, which carries a maximum sentence of five years in prison.

The maximum potential sentence in this case is prescribed by Congress and provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.  CONCEPCION is scheduled to be sentenced on September 10, 2026.

Mr. Clayton praised the outstanding work of the New York City Department of Investigation, the New York State Office of Inspector General, and the Special Agents and Task Force Officers assigned to the U.S. Attorney’s Office for the Southern District of New York. 

The prosecution of this case is being handled by the Office’s Civil Rights and Human Trafficking Unit and the Public Corruption Unit.  Assistant U.S. Attorneys Kaiya Arroyo and Stephanie Simon are in charge of the prosecution.

United States Attorney for the Southern District of New York, Jay Clayton, announced the guilty plea of JORDAN TROUGHT for his role as a high-ranking member of an international fraud ring that stole more than $9 million from more than 200 elderly victims in the United States via sweepstakes scams.  TROUGHT pled guilty today to conspiracy to commit wire fraud, mail fraud, and bank fraud before U.S. Magistrate Judge Judith C. McCarthy.  TROUGHT was arrested on August 28, 2025, in Jamaica and extradited to the United States.

“Jordan Trought admitted today that he helped lead an international fraud ring that stole millions of dollars from elderly victims across the United States through lies about sweepstakes winnings,” said U.S. Attorney Jay Clayton. “Trought and his co-conspirators allegedly exploited trust, age, and hope for profit, including by taking control of victims’ bank accounts and routing stolen money to Jamaica. Today’s plea reflects this Office’s commitment to protecting vulnerable victims, pursuing fraudsters across borders, and holding accountable those who steal from Americans.” 

According to the Superseding Indictment, plea agreement, and statements made in public filings and in public court proceedings: 

From at least 2015 through at least 2025, TROUGHT and others engaged in a fraud scheme perpetrated against elderly victims (the “Elder Fraud Scheme”), through which TROUGHT and his co-conspirators defrauded more than 200 elderly victims of more than $9 million.  Victims of the Elder Fraud Scheme typically received an unsolicited phone call or text from an individual using a common name—e.g., “David Miller”—claiming they had won a life-changing amount of money and a luxury car from a well-known marketing and sweepstakes company, but needed to pay taxes or fees to addresses and accounts specified by the caller before receiving the prize. The caller then remained in contact with the victims and, after the victims made their initial payments as directed, informed the victims that additional payments were required to receive their purported winnings.  In particular, victims were instructed to send money by mailing checks, money orders, and cash, as well as by wire, Zelle, and Venmo transfer, to addresses and accounts identified by the caller.  TROUGHT and his co-conspirators also gained control of some victims’ bank accounts, which they used to transfer money out of and through those accounts.  Victims’ funds were ultimately transferred to associates of TROUGHT and his co-conspirators, as well as to an automobile business operated by TROUGHT in Jamaica.

TROUGHT operated the Elder Fraud Scheme from Jamaica, alongside co-conspirators based in both Jamaica and the United States.  TROUGHT joined the fraud ring in or around March 2021 and became one of its leaders.  TROUGHT is being held responsible for more than $6 million stolen from more than 100 victims from March 2021 through TROUGHT’s arrest in August 2025.

*                *               *

TROUGHT, 30, a citizen of Jamaica, pled guilty to one count of conspiracy to commit wire fraud, mail fraud, and bank fraud, which carries a maximum sentence of 30 years in prison. TROUGHT also agreed to make restitution and pay forfeiture, each in the amount of $6,166,227.

The maximum potential sentence in this case is prescribed by Congress and provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.   TROUGHT will be sentenced by U.S. District Judge Vincent Briccetti. 

Mr. Clayton praised the outstanding investigative work of the Special Agents of the U.S. Attorney’s Office for the Southern District of New York and the Internal Revenue Service – Criminal Investigation.  Mr. Clayton also thanked the U.S. Marshals Service, the U.S. Department of Justice’s Office of International Affairs, and Jamaican authorities, including the Jamaican Constabulary Force, for their assistance in securing TROUGHT’s arrest and extradition.

This case is being handled by the Office’s White Plains Division.  Assistant U.S. Attorneys Benjamin Levander, Margaret Vasu, and Ioannis Drivas are in charge of the prosecution.

United States Attorney for the Southern District of New York, Jay Clayton, announced today that EDSON BROWN, a Bronx resident, pled guilty to an 18-count indictment, charging him with crimes in connection with a firearms trafficking scheme spanning more than a year and involving at least two straw purchasers.  BROWN pled guilty today before U.S. District Judge John P. Cronan.

“New Yorkers want criminals who use guns off our streets and, together with the NYPD, the FBI, the ATF, and many others, we are committed to pursuing gun-toting criminals and gun traffickers,” said U.S. Attorney Jay Clayton.  “To be clear, gun traffickers are criminals who serve violent criminals—there is no place for them in New York.”

As alleged in the Superseding Indictment and other public filings in this case:

Between in or about July 2023 and in or about February 2025, BROWN, who lived in the Bronx, traveled to North Carolina and South Carolina more than a dozen times to illegally purchase approximately 118 firearms at gun stores, each of which were federal firearms licensees (“FFLs”) that he then transported back to New York and sold.  BROWN was not allowed to purchase or possess guns because he is a convicted felon. 

BROWN’s illegal purchases were split between North Carolina and South Carolina. BROWN illegally acquired approximately 53 guns in North Carolina that he then transported to New York and sold to others.  Between July and December 2023, BROWN made six trips from New York to North Carolina with a straw purchaser, that is, someone who falsely stated to FFLs that the straw purchaser was buying the guns legally and for his or her own use, but in reality was buying the firearms for BROWN and for the purpose of resale in New York.  BROWN also illegally acquired approximately 65 guns in South Carolina that he then transported to New York and sold to others.  Between October 2023 and February 2025, the defendant worked with a second straw purchaser in South Carolina to acquire those guns.  Sometimes that straw purchaser bought the guns and then transferred them to the defendant.  Other times the defendant traveled to South Carolina from New York, impersonated the straw purchaser himself by using the straw purchaser’s ID to buy the guns, and then transported the guns back to New York himself.

BROWN defaced many of the guns by removing their serial numbers before selling them in New York.  Members of the NYPD have recovered seven of the guns that BROWN trafficked from North Carolina and South Carolina to New York.  Six of those seven guns had obliterated serial numbers that the NYPD firearms lab was able to restore—and thus trace back to BROWN’s purchases in North Carolina and South Carolina.  The remaining firearms that BROWN trafficked have not yet been recovered, or if they have been recovered, members of law enforcement have been unable to trace them because their serial numbers cannot be restored.

*               *                *   

BROWN, 37, of the Bronx, New York, pled guilty to the following 18 crimes, which carry the maximum sentences described in the below chart:

Count(s)

Charge

Maximum Sentence

1

15 years

2

15 years

3

Five years

4-18

Five years per count

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

Mr. Clayton praised the outstanding investigative work of the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the New York City Police Department.

This case is being handled by the Office’s Violent Organizations and Crime Unit.  Assistant U.S. Attorneys Andrew Jones and Joseph H. Rosenberg are in charge of the prosecution. 

United States Attorney for the Southern District of New York, Jay Clayton, Special Agent in Charge of the New York Task Force Division of the Drug Enforcement Administration (“DEA”), Christopher Roberts, and the Commissioner of the New York City Police Department (“NYPD”), Jessica S. Tisch, announced today the unsealing of a Superseding Indictment charging ARISTIDES CABRERA, a/k/a “Buddha,” with drug crimes resulting in the fatal poisoning of Alex DeFilippo and Kyla McCarthy on May 29, 2022.  The Indictment previously charged CABRERA with drug crimes resulting in the fatal poisoning of a 12‑year-old child on June 28, 2022, and with having used, carried, and possessed firearms in connection with his drug trafficking crimes.  On March 25, 2026, following the initial Indictment, CABRERA was brought into federal custody from New York State custody, where he had been serving state sentences for other firearm and drug crimes.  The case is assigned to U.S. District Judge J. Paul Oetken.

“As alleged, Cabrera’s drug dealing not only caused the death of a 12-year-old child but also the deaths of two adults,” said U.S. Attorney Jay Clayton. “This case shows: if you deal fentanyl, you’ve chosen to deal in death.  And there is no place for you in New York.”

“Today’s unsealing of a superseding indictment against Aristides Cabrera sends a clear and powerful message to those who continue to poison our communities with fentanyl and other illicit drugs: your day of reckoning is coming,” said DEA Special Agent in Charge Christopher Roberts.  “This defendant’s alleged actions contributed to the tragic loss of three lives, including that of a young person whose future was senselessly stolen.  The blatant and utter disregard for human life demonstrated in this case underscores the devastating toll drug traffickers inflict on our communities and families every day.  Through the tireless work of our investigators and the close collaboration of our prosecutorial partners, we were able to pursue death-resulting charges that reflect the gravity of these allegations and the irreversible harm caused.  While no investigation or prosecution can restore the lives lost, the DEA remains steadfast in its mission to ensure those responsible for fueling addiction, violence, and death are identified and brought to justice.”

“Because of this defendant, three New Yorkers, including a 12-year-old child with disabilities, overdosed on drugs and lost their lives,” said NYPD Commissioner Jessica S. Tisch.  “Despite knowing about these deaths, the defendant continued selling the same narcotics, showing a complete disregard for human life.  This case is a devastating example of the danger fentanyl poses, especially when it is brought into a home with children.  I thank the NYPD detectives, the U.S. Attorney’s Office for the Southern District, and our law enforcement partners for working to hold this criminal accountable.”

 As alleged in the Indictment and other public filings:

From at least in or about November 2017 through in or about January 2024, CABRERA worked with others to sell, among other things, heroin, fentanyl, and para-fluorofentanyl in the Longwood neighborhood of the Bronx, New York.  During a single-month span of that period, between on or about May 29, 2022, and on or about June 28, 2022, CABRERA’s drugs killed three people, including a 12-year-old boy with a history of autism spectrum disorder who had been residing with CABRERA and others in his Bronx apartment.  

Despite knowing about these deaths, CABRERA continued selling the same drugs, including during a later period in which he was detained at a state correctional facility. CABRERA led his drug trafficking operation, in part, from his Bronx apartment, where he stored firearms and significant quantities of narcotics, including fentanyl and para-fluorofentanyl, a deadly fentanyl analogue.  CABRERA stored narcotics, including fentanyl-laced pills, in multiple locations in his apartment, including in a safe where he also kept firearms.  CABRERA typically met and sold drugs to customers in the immediate vicinity of his apartment. 

On or about May 29, 2022, CABRERA met with and sold drugs to Alex DeFilippo (also identified in the Indictment as Victim-1) and a relative of DeFilippo. CABRERA knew DeFilippo and had previously engaged in narcotics transactions with him. CABRERA also previously discussed drug sales with DeFilippo’s intimate partner, Kyla McCarthy (also identified in the Indictment as Victim-2).  After purchasing CABRERA’s drugs, DeFilippo returned to McCarthy’s apartment.  Shortly thereafter that same day, McCarthy’s cellphone was used to conduct three internet searches, all of which related to the use of naloxone (commonly known as Narcan), a nasal spray used to reverse the deadly effects of overdoses from opioids like fentanyl.  Approximately eighteen hours later, at the request of one of McCarthy’s family members, NYPD officers responded to the apartment to conduct a wellness check. Inside, NYPD officers discovered DeFilippo and McCarthy, both of whom had died after ingesting the fentanyl and para-fluorofentanyl sold to them by CABRERA.  One unused dose of Narcan was found at McCarthy’s feet.

Less than a month after the fatal overdoses of DeFilippo and McCarthy, on or about June 28, 2022, at CABRERA’s apartment, a 12-year-old boy was found by a family member in his bed unresponsive and foaming at the mouth.  The boy was transported to a Bronx County hospital, where he was later pronounced dead. 

*                *               *

CABRERA, 35, of the Bronx, New York, is charged with conspiracy to distribute narcotics resulting in death and three counts of distribution of narcotics resulting in death, all of which crimes carry a mandatory minimum sentence of 20 years in prison and a maximum sentence of life in prison.  CABRERA is also charged with firearms use, carrying, and possession in connection with his drug trafficking crimes, which carries a mandatory minimum sentence of five years in prison, which must run consecutively to any other sentence, and a maximum sentence of life in prison. 

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

Mr. Clayton praised the outstanding investigative work of the NYPD, DEA, and Drug Enforcement Task Force Division, as well as Special Agents, Task Force Officers, the Digital Forensics Unit, and the Complex Analytics and Social Media Enhancement Team at the New York/New Jersey High Intensity Drug Trafficking Area from the U.S. Attorney’s Office for the Southern District of New York.  Mr. Clayton also thanked the Bronx District Attorney’s Office for its assistance in the case.

The case is being handled by the Office’s Narcotics Unit.  Assistant U.S. Attorneys Ashley C. Nicolas, Benjamin M. Burkett, Dana R. McCann, Lisa Daniels, and Amanda C. Weingarten are in charge of the prosecution.

United States Attorney for the Southern District of New York, Jay Clayton, announced that SAUL ARISMENDY DE LA CRUZ, a/k/a “Nene,” a/k/a “Venom,” a former member of the New York City Police Department (“NYPD”), was sentenced today before U.S. District Judge Nelson S. Román to 75 months in prison for accepting bribes to provide members of a theft crew in which he participated with confidential police information about potential victims and ongoing investigations.  DE LA CRUZ had pleaded guilty to one count of racketeering conspiracy, in connection with his participation in the violent theft crew. 

“The NYPD is the greatest police department in the world,” said U.S. Attorney Jay Clayton.  “Yet Saul Arismendy De La Cruz betrayed his colleagues and the New Yorkers he was sworn to protect.  His selfish crimes cannot tarnish the NYPD but must be met with justice as they were today.” 

As alleged in the Indictment and Superseding Indictments unsealed in White Plains federal court:

DE LA CRUZ was one of a number of defendants charged for participation in a violent theft crew led by the fugitive DAGOBERTO SOTO-RAMIREZ, a/k/a “Pito,” pictured below:

DAGOBERTO SOTO-RAMIREZ: WANTED BY THE FBI

Between 2017 and 2022, SOTO-RAMIREZ organized a crew that committed residential burglaries and home invasion robberies, repeatedly targeting small business owners.  The majority of the targeted victims were Asian American.  Armed with guns and other weapons, members of the crew stole money, jewelry, and other property from scores of homes in states across the country.  Others took part in the crew’s criminal scheme, which also included the use of false identification, bank fraud, and laundering theft proceeds.  In addition, SOTO-RAMIREZ and other members of the conspiracy bribed DE LA CRUZ, first an officer and later a detective of the NYPD, who helped members of the crew escape arrest. 

SOTO-RAMIREZ remains a fugitive.  Anyone with information about his whereabouts should contact the Federal Bureau of Investigation (“FBI”) at 1-800-CALL-FBI or https://tips.fbi.gov/. 

*               *                *

In addition to his prison sentence, DE LA CRUZ, 33, of Queens, New York, was sentenced to three years of supervised release and ordered to pay $100,000 in forfeiture and $219,459 in restitution to victims. 

Mr. Clayton praised the investigative work of the FBI, the Westchester County Joint Organized Crime Task Force, the New York Public Corruption Task Force, the Westchester County Department of Public Safety, the NYPD, the Nassau County Police Department, the New York State Police and the Fort Lee Police Department. 

The case is being handled by the Office’s White Plains Division.  Assistant U.S. Attorneys Josiah Pertz, Jeffrey C. Coffman, and Ben Arad are in charge of the prosecution.

United States Attorney for the Southern District of New York, Jay Clayton, Acting Special Agent in Charge of the New York Field Office of Homeland Security Investigations (“HSI”), Pete Gizas, and Commissioner of the New York City Police Department (“NYPD”), Jessica S. Tisch, announced today the unsealing of an Indictment charging three defendants in connection with the August 7, 2025, murder of Ralph Herrera, a/k/a “Chicken,” who was shot from point-blank range in the side of the head while standing on a Bronx sidewalk.  The three defendants, JAHRID DAWKINS, KADIN WEST, a/k/a “Kay Backends,” and MILAN WRIGHT, a/k/a “BabyyThreat,” were arrested earlier today and were ordered detained.  The case has been assigned to U.S. District Judge Katherine Polk Failla.

“As alleged, the defendants plotted a point-blank murder after a gang dispute and carried it out in cold blood on a busy Bronx sidewalk,” said U.S. Attorney Jay Clayton.  “New Yorkers want us to do all we can to end targeted gang violence and, today, that is exactly what our Office and our law enforcement partners are delivering.” 

“The defendants allegedly carried out a deliberate, point-blank killing on a Bronx sidewalk—a calculated act of gang violence that left Ralph Herrera ambushed and fatally shot in the street,” said HSI Acting Special Agent in Charge Pete Gizas.  “HSI New York agents and task force officers worked lockstep with the NYPD to follow the evidence step-by-step and identify, investigate, and arrest these alleged killers.  Together with our law enforcement partners, we will continue to do whatever it takes to drive violent gangs out of our neighborhoods and protect the people we serve.”

As alleged in the Indictment, other court filings, and statements made during court proceedings:(1)

From at least 2023 through May 2026, DAWKINS, WEST, and WRIGHT were members and associates of the MacBallers, a violent gang whose members engage in drug trafficking, robbery, and systematic violence against rivals and anyone perceived to have disrespected the gang.  Gang members also openly celebrate their criminal conduct through music and on social media.

On August 5, 2025, WEST, WRIGHT, and other gang members got into an altercation with Herrera, the victim, in front of a Bronx store.  In the days that followed, WEST and WRIGHT discussed killing Herrera in retaliation for the perceived slight.  On August 7, 2025, DAWKINS—wearing a mask and all-black clothing—approached Herrera on a busy sidewalk and shot him in the side of the head at point-blank range, killing him, before fleeing the scene.  The murder is captured on video:

*                *                *

DAWKINS, 18, of Edison, New Jersey; WEST, 23, of the Bronx, New York; and WRIGHT, 19, of the Bronx, New York, are each charged with one count of racketeering conspiracy, which carries a maximum sentence of life in prison as to DAWKINS and WEST, and 20 years in prison as to WRIGHT.  WEST and WRIGHT are also charged with conspiracy to commit murder in aid of racketeering, which carries a maximum sentence of 10 years in prison.  Additionally, WEST is charged with murder in aid of racketeering, which carries a maximum penalty of death or life in prison, and a mandatory minimum penalty of life in prison, and with a firearms offense, which carries a maximum penalty of life in prison.

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

Mr. Clayton praised the outstanding investigative work of HSI and the NYPD.

This case is being handled by the Office’s Violent Organizations and Crime Unit. Assistant U.S. Attorneys Patrick R. Moroney, Robert S. Ruff, and Joe Zabel 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 Indictment, and the description of the Indictment set forth herein, constitute only allegations, and every fact described should be treated as an allegation.

United States Attorney for the Southern District of New York, Jay Clayton, and Special Agent in Charge of the New York Field Division for the Bureau of Alcohol, Tobacco, Firearms and Explosives (“ATF”), Bryan DiGirolamo, announced today the unsealing of a Complaint charging ANDY DAVID PALACIOS ORTIZ in a conspiracy to commit armed robberies in January 2026 of two New York stores that sold collectible Pokémon trading cards.  PALACIOS was arrested today and presented before Magistrate Judge Barbara Moses.

“As alleged, Andy David Palacios Ortiz engineered and participated in brazen armed robberies in New York that resulted in the theft of over $100,000 in Pokémon cards, and terrified multiple store employees and customers,” said U.S. Attorney Jay Clayton.  “Gun violence is a threat to the safety and security of our neighborhoods, and Palacios now stands charged with serious federal crimes.  Would-be perpetrators should know: you cannot commit robberies against New Yorkers and get away with it.”

“These alleged robberies were not simply thefts targeting collectibles—they were violent crimes that left victims fearing for their safety,” said ATF Special Agent in Charge Bryan DiGirolamo.  “The successful identification and arrest of dangerous offenders is only possible through close coordination between federal, state, and local law enforcement.  Thanks to the hard work of ATF/NYPD Strategic Pattern Technical Apprehension Group (SPARTA), the NYPD’s Manhattan and Queens Robbery Squads & the U.S. Attorney’s Office for the Southern District of New York.  We are committed to our shared mission to protect the public from violent crime.”

As alleged in the Complaint unsealed today in Manhattan federal court:(1)

On or about January 9, 2026, multiple masked individuals entered a collectible trading card store in Queens, New York, brandished a gun at store employees and customers, and stole Pokémon cards and cash.  Less than a week later, on or about January 14, 2026, multiple masked individuals entered a Pokémon trading card and merchandise store in lower Manhattan, New York, and held store employees and dozens of customers at gunpoint while they robbed the store of Pokémon cards and cash, including by using a hammer to break open a glass display case holding some of the store’s most valuable Pokémon cards.  The Pokémon merchandise stolen by the robbers in the two robberies is valued in excess of $100,000. 

PALACIOS organized and participated in the commission of both robberies.  In particular, PALACIOS helped plan the robberies by surveilling the stores, identifying the most valuable Pokémon cards inside, and communicating that information to his co-conspirators.  

On or about January 12, 2026, two days before the Manhattan robbery, PALACIOS used his cellphone to take pictures or video of various items behind the glass display case where the robbery eventually took place, as shown in the surveillance images below. 

PALACIOS also participated in the commission of the robberies by, among other things, recruiting another co-conspirator who drove the robbers to and from the robberies.  PALACIOS also sold some of the stolen Pokémon cards after the robberies for thousands of dollars.

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PALACIOS, 28, of Flushing, New York, has been charged with one count of Hobbs Act robbery and one count of Hobbs Act robbery conspiracy, each of which carries a maximum sentence of 20 years in prison. 

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

Mr. Clayton thanked the Bureau of Alcohol, Tobacco, Firearms and Explosives and the New York City Police Department for their assistance in this case. 

This case is being handled by the Office’s General Crimes Unit.  Assistant U.S. Attorneys Ariana Bloom and Samantha Fry are in charge of the prosecution.

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

1. ^

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