Southern District of New York
Press releases recorded for this federal judicial district.
New Jersey Man Sentenced to 42 Months for $9 Million FraudRead the Press Release
United States Attorney for the Southern District of New York, Jay Clayton, announced today that ARSEN LUSHER was sentenced to 42 months in prison by U.S. District Judge Dale E. Ho for perpetrating a scheme to defraud more than 20 investors of nearly nine million dollars. On August 18, 2025, LUSHER pled guilty to one count of wire fraud.
“Today’s 42-month sentence comes at the end of a too common story: a fast-talking fraudster promising exceptional returns but not giving investors basic information,” said U.S. Attorney Jay Clayton. “Arsen Lusher lied to victims about the nature of his business to line his own pockets. When the walls came closing in, Lusher doubled down, creating false documents to try to lull his victims into a false sense of security about their investments. Lusher’s fraud was brazen, and it cost his victims nearly $9 million. A good rule of thumb for investors: no audit, no investment.”
According to the charging documents and other filings and statements made in court:
From at least 2017 through at least February 2021, the defendant engaged in a scheme in which he and his associates solicited investments from victims, usually by representing that the defendant had a profitable trucking business that enjoyed delivery and installation contracts with multiple large retailers. The defendant and his associates typically represented that the victims’ investments would fund the purchase of trucks and guaranteed the victims high rates of return over a fixed period—typically between 30 and 40 percent over one or two years. In that way, the defendant succeeded in raising approximately more than $40 million from his victims during the scheme. But the defendant did not have a large trucking business, and he did not invest the victims’ money into any trucking business. Instead, the defendant paid earlier victims with later victims’ funds, sustaining the scheme for years.
While he was stealing money from the victims, the defendant lived a lavish life. For example, the defendant gambled millions of dollars at casinos and online, winning as much as $100,000 in a single sitting. The defendant also used funds from his companies’ corporate bank accounts to finance personal expenses. On a trip to China in April 2019, the defendant spent thousands of dollars in a high-end shopping spree, including a $3,210.76 charge from a Louis Vuitton store and a $12,932.24 charge at a Hermès store in Hong Kong. The defendant paid those expenses from his business bank accounts. During the scheme, neither the defendant in his personal capacity nor any of the companies that the defendant used to perpetrate the scheme filed federal tax returns.
After years of fraud, in late 2020 and early 2021, the scheme collapsed, leaving the victims with losses of at least $8,740,440. As the scheme came crashing down, the defendant created numerous false documents and caused them to be shared with his victims for the purpose of continuing to solicit investments and lulling victims into a false sense of security with respect to their investments. For example, in January 2021, the defendant created and caused to be sent to a particular victim (“Victim-1”) a falsified email, in which the defendant altered account balances for two of the companies that the defendant used to perpetrate the scheme that had been reported to the defendant by an employee from a particular bank (“Bank-1”). The email that the defendant received from Bank-1 is shown below left; the email that the defendant altered and caused to be sent to Victim‑1 is below right. Instead of “8,767.26,” and “$320.76,” the defendant altered the email to state that his companies had account balances of $1,228,767.26 and $987,320.76 (italics and bold added).
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In addition to the prison term, LUSHER, 49, of Millstone, New Jersey, was sentenced to three years of supervised release and ordered to pay $8,740,440 in forfeiture and $8,740,440 in restitution.
Mr. Clayton praised the outstanding investigative work of the Federal Bureau of Investigation, the Internal Revenue Service, and U.S. Customs and Border Protection.
This case is being handled by the Office’s General Crimes Unit. Assistant U.S. Attorney Joseph H. Rosenberg is in charge of the prosecution.
U.S. Soldier Charged with Using Classified Information to Profit from Prediction Market BetsRead the Press Release
The Justice Department announced today the unsealing of an indictment charging Gannon Ken Van Dyke, a U.S. Army soldier, with unlawful use of confidential government information for personal gain, theft of nonpublic government information, commodities fraud, wire fraud, and making an unlawful monetary transaction. The charges arise from an alleged scheme in which Van Dyke used sensitive classified information to make wagers on Polymarket, a prediction marketplace. As alleged in the indictment, Van Dyke participated in the planning and execution of the U.S. military operation to capture Nicolás Maduro, called “Operation Absolute Resolve,” and Van Dyke used his access to classified information about that operation to personally profit. Van Dyke will be presented today before U.S. Magistrate Judge Brian S. Meyers in the Eastern District of North Carolina. The case has been assigned to U.S. District Judge Margaret M. Garnett in the Southern District of New York.
“Our men and women in uniform are trusted with classified information in order to accomplish their mission as safely and effectively as possible, and are prohibited from using this highly sensitive information for personal financial gain,” said Acting Attorney General Todd Blanche. “Widespread access to prediction markets is a relatively new phenomenon, but federal laws protecting national security information fully apply.”
“Today’s announcement makes clear no one is above the law, and this FBI will do whatever it takes to defend the homeland and safeguard our nation’s secrets,” said FBI Director Kash Patel. “Any clearance holders thinking of cashing in their access and knowledge for personal gain will be held accountable.”
“Prediction markets are not a haven for using misappropriated confidential or classified information for personal gain,” said U.S. Attorney Jay Clayton for the Southern District of New York. “The defendant allegedly violated the trust placed in him by the United States Government by using classified information about a sensitive military operation to place bets on the timing and outcome of that very operation, all to turn a profit. That is clear insider trading and is illegal under federal law. Those entrusted to safeguard our nation’s secrets have a duty to protect them and our armed service members, and not to use that information for personal financial gain. Our Office will continue to hold accountable those who misuse confidential or classified information in a way that undermines and exploits our national security.”
“Gannon Ken Van Dyke allegedly betrayed his fellow soldiers by utilizing classified information for his own financial gain,” said FBI Assistant Director in Charge James C. Barnacle Jr. “Van Dyke profited more than $400,000 by trading various outcomes related to Venezuela after learning of the operation because of his role as a U.S. Army soldier. The FBI will continue to investigate threats to our nation's security especially from those entrusted to safeguard sensitive classified information and military operations.”
As alleged in the Indictment unsealed today in Manhattan federal court, Van Dyke has been an active-duty soldier in the U.S. Army, stationed at Fort Bragg, a military base located in Fayetteville, North Carolina. In connection with his work, Van Dyke signed nondisclosure agreements in which he promised to “never divulge, publish, or reveal by writing, words, conduct, or otherwise . . . any classified or sensitive information” relating to military operations. Starting around Dec. 8, 2025, and continuing through at least Jan. 6, Van Dyke was involved in the planning and execution of Operation Absolute Resolve, a military operation to capture Maduro, and had access to sensitive, nonpublic, classified information about that operation.
In 2025, Polymarket, a prediction marketplace operated by Blockratize Inc., began offering binary event contracts related to whether certain events involving Venezuela and/or Maduro would, or would not, occur. Those event contracts included the future likelihood of “US forces in Venezuela by” certain dates, the future likelihood of Maduro being “out” of or removed from power by certain dates, the future likelihood of the U.S. invading Venezuela by on or before Jan. 31, and the future likelihood of President Trump “invoking War Powers against Venezuela” by a certain date.
As alleged, on or about Dec. 26, 2025, Van Dyke created a Polymarket account, funded it, and began trading on Maduro- and Venezuela-related markets. In total, Van Dyke made approximately 13 bets from Dec. 27, 2025, through the evening of Jan. 26. Those bets all took the “YES” position on “U.S. Forces in Venezuela . . . by January 31, 2026”; “Maduro out by . . . January 31, 2026”; “Will the U.S. invade Venezuela by . . . January 31,”; or “Trump invokes War Powers against Venezuela by . . . January 31.” Van Dyke bet a total of approximately $33,034 on those outcomes while in possession of classified nonpublic information about Operation Absolute Resolve.
In the predawn hours of Jan. 3, the U.S. apprehended Maduro and his wife at a residence in Caracas, Venezuela, and hours later the President of the United States announced the successful operation. Following the President’s public announcement, Polymarket resolved several Maduro- and Venezuela-related contracts to “YES,” including the markets “Maduro out by . . . January 31, 2026,” and “US forces in Venezuela by . . . January 31, 2026.” As a result, Van Dyke won his wagers on those contracts. In total, Van Dyke allegedly profited approximately $409,881.
Following his successful trading relating to Maduro- and Venezuela-related contracts, Van Dyke allegedly sent most of his proceeds to a foreign cryptocurrency vault before depositing them into a newly created online brokerage account. The same day of the operation, Van Dyke withdrew the majority of his allegedly unlawful proceeds from his Polymarket account. Shortly after the announcement of Operation Absolute Resolve, reports of unusual trading in Maduro-related contracts on Polymarket appeared in the press and on social media. Van Dyke then took steps to conceal his identity as the trader in the Maduro- and Venezuela-related markets. On or about January 6, 2026, for example, Van Dyke asked Polymarket to delete his Polymarket account, falsely claiming that he had lost access to the email address to which the account had been associated. That same day, Van Dyke changed the email registered to his cryptocurrency exchange account to an email address that was not subscribed to in his name, and which he had created on or about Dec. 14, 2025.
Van Dyke, 38, of Fayetteville, North Carolina, is charged with three counts of violating the Commodity Exchange Act, each of which carries a maximum sentence of 10 years in prison; one count of wire fraud, which carries a maximum sentence of 20 years in prison; and one count of an unlawful monetary transaction, which carries a maximum penalty of 10 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.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force and National Security and International Narcotics Unit. Assistant U.S. Attorneys Nicholas W. Chiuchiolo, Ryan B. Finkel, and Juliana N. Murray for the Southern District of New York are in charge of the prosecution, with assistance from Acting Deputy Chief Tanner Kroeger and Trial Attorney Eli Ross of the National Security Division’s Counterintelligence & Export Control Section.
U.S. Soldier Charged with Using Classified Information to Profit from Prediction Market BetsRead the Press Release
United States Attorney for the Southern District of New York, Jay Clayton, Acting Attorney General for the United States, Todd Blanche, 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 the unsealing of an Indictment charging GANNON KEN VAN DYKE, a U.S. Army Soldier, with unlawful use of confidential government information for personal gain, theft of nonpublic government information, commodities fraud, wire fraud, and making an unlawful monetary transaction. The charges arise from an alleged scheme in which VAN DYKE used sensitive classified information to make wagers on Polymarket, a prediction marketplace. As alleged in the Indictment, VAN DYKE participated in the planning and execution of the U.S. military operation to capture Nicolás Maduro, called “Operation Absolute Resolve,” and VAN DYKE used his access to classified information about that operation to personally profit. VAN DYKE will be presented today before U.S. Magistrate Judge Brian S. Meyers in the Eastern District of North Carolina. The case has been assigned to U.S. District Judge Margaret M. Garnett in the Southern District of New York.
“Prediction markets are not a haven for using misappropriated confidential or classified information for personal gain,” said U.S. Attorney Jay Clayton. “The defendant allegedly violated the trust placed in him by the United States Government by using classified information about a sensitive military operation to place bets on the timing and outcome of that very operation, all to turn a profit. That is clear insider trading and is illegal under federal law. Those entrusted to safeguard our nation’s secrets have a duty to protect them and our armed service members, and not to use that information for personal financial gain. Our Office will continue to hold accountable those who misuse confidential or classified information in a way that undermines and exploits our national security.”
“Our men and women in uniform are trusted with classified information in order to accomplish their mission as safely and effectively as possible, and are prohibited from using this highly sensitive information for personal financial gain,” said Acting Attorney General Todd Blanche. “Widespread access to prediction markets is a relatively new phenomenon, but federal laws protecting national security information fully apply.”
“Today’s announcement makes clear no one is above the law, and this FBI will do whatever it takes to defend the homeland and safeguard our nation’s secrets,” said FBI Director Kash Patel. “Any clearance holders thinking of cashing in their access and knowledge for personal gain will be held accountable.”
“Gannon Ken Van Dyke allegedly betrayed his fellow soldiers by utilizing classified information for his own financial gain,” said FBI Assistant Director in Charge James C. Barnacle, Jr. “Van Dyke profited more than $400,000 by trading various outcomes related to Venezuela after learning of the operation because of his role as a U.S. Army soldier. The FBI will continue to investigate threats to our nation's security especially from those entrusted to safeguard sensitive classified information and military operations.”
As alleged in the Indictment unsealed today in Manhattan federal court:[1]
VAN DYKE has been an active-duty soldier in the U.S. Army, stationed at Fort Bragg, a military base located in Fayetteville, North Carolina. In connection with his work, VAN DYKE signed nondisclosure agreements in which he promised to “never divulge, publish, or reveal by writing, words, conduct, or otherwise . . . any classified or sensitive information” relating to military operations. Starting around December 8, 2025, and continuing through at least January 6, 2026, VAN DYKE was involved in the planning and execution of Operation Absolute Resolve, a military operation to capture Maduro, and had access to sensitive, nonpublic, classified information about that operation.
In 2025, Polymarket, a prediction marketplace operated by Blockratize, Inc., began offering binary event contracts related to whether certain events involving Venezuela and/or Maduro would, or would not, occur. Those event contracts included the future likelihood of “US forces in Venezuela by” certain dates, the future likelihood of Maduro being “out” of or removed from power by certain dates, the future likelihood of the U.S. invading Venezuela by on or before January 31, 2026, and the future likelihood of President Trump “invokeing War Powers against Venezuela” by a certain date.
As alleged, on or about December 26, 2025, VAN DYKE created a Polymarket account, funded it, and began trading on Maduro- and Venezuela-related markets. In total, VAN DYKE made approximately 13 bets from December 27, 2025, through the evening of January 2, 2026. Those bets all took the “YES” position on “U.S. Forces in Venezuela . . . by January 31, 2026”; “Maduro out by . . . January 31, 2026”; “Will the U.S. invade Venezuela by . . . January 31,”; or “Trump invokes War Powers against Venezuela by . . . January 31.” VAN DYKE bet a total of approximately $33,034 on those outcomes while in possession of classified nonpublic information about Operation Absolute Resolve.
In the predawn hours of January 3, 2026, U.S. special forces apprehended Maduro and his wife at a residence in Caracas, Venezuela, and hours later the President of the United States announced the successful operation. Following the President’s public announcement, Polymarket resolved several Maduro- and Venezuela-related contracts to “YES,” including the markets “Maduro out by . . . January 31, 2026,” and “US forces in Venezuela by . . . January 31, 2026.” As a result, VAN DYKE won his wagers on those contracts. In total, VAN DYKE allegedly profited approximately $409,881.
Following his successful trading relating to Maduro- and Venezuela-related contracts, VAN DYKE allegedly sent most of his proceeds to a foreign cryptocurrency vault before depositing them into a newly created online brokerage account. The same day of the operation, VAN DYKE withdrew the majority of his allegedly unlawful proceeds from his Polymarket account. Shortly after the announcement of Operation Absolute Resolve, reports of unusual trading in Maduro-related contracts on Polymarket appeared in the press and on social media. VAN DYKE then took steps to conceal his identity as the trader in the Maduro- and Venezuela-related markets. On or about January 6, 2026, for example, VAN DYKE asked Polymarket to delete his Polymarket account, falsely claiming that he had lost access to the email address to which the account had been associated. That same day, VAN DYKE changed the email registered to his cryptocurrency exchange account to an email address that was not subscribed to in his name, and which he had created on or about December 14, 2025.
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VAN DYKE, 38, of Fayetteville, North Carolina, is charged with three counts of violating the Commodity Exchange Act, each of which carries a maximum sentence of 10 years in prison; one count of wire fraud, which carries a maximum sentence of 20 years in prison; and one count of an unlawful monetary transaction, which carries a maximum sentence of 10 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 also thanked the United States Department of War, and the Commodity Futures Trading Commission. Mr. Clayton also acknowledged Polymarket’s cooperation in this investigation.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force and National Security and International Narcotics Unit. Assistant U.S. Attorneys Nicholas W. Chiuchiolo, Ryan B. Finkel, and Juliana N. Murray are in charge of the prosecution, with assistance from Acting Deputy Chief Tanner Kroeger and Trial Attorney Eli Ross of the National Security Division’s Counterintelligence & Export Control Section.
[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.
A-Town Trinitarios Gang Members Charged with Racketeering, Assault, and Firearms OffensesRead the Press Release
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 United States Marshal for the Southern District of New York, Ricky J. Patel, announced today the unsealing of a seven-count Indictment charging two individuals, ALEJANDRO COLON, a/k/a “Ale,” and OSCAR OLIVENCIA, a/k/a “Jon-O,” a/k/a “Young O,” with federal crimes, including racketeering conspiracy, attempted murder, assault with a dangerous weapon, attempted assault with a dangerous weapon, and firearms offenses. The defendants are charged for their roles in the “A-Town” set of the Trinitarios street gang and associated acts of violence, including a shooting on February 7, 2023, in the Bronx where COLON and OLIVENCIA, acting together, shot at multiple people, resulting in gunshot wounds to two victims. In a coordinated operation, COLON was arrested last night and OLIVENCIA was arrested this morning. Both defendants will be presented later this afternoon before U.S. Magistrate Judge Henry J. Ricardo. The case is assigned to U.S. District Judge Arun Subramanian.
“As alleged, Oscar Olivencia and Alejandro Colon were members of the A-Town Trinitarios who shot at three individuals outside a restaurant in the Bronx, seriously injuring two of them,” said U.S. Attorney Jay Clayton. “Gang violence is a threat to the safety and security of our neighborhoods, and together with our law enforcement partners, the women and men of this Office will continue to work relentlessly to give New Yorkers what they want and deserve: safe neighborhoods free from the terror of gun violence.”
“These alleged members of the ‘A-Town’ Trinitarios crew used gun violence to further their illicit operations, shooting two people and putting many more Tremont residents at risk,” said NYPD Commissioner Jessica S. Tisch. “Today’s indictment underscores the NYPD’s focus on taking down gangs, removing guns, and keeping our communities safe. I thank our NYPD detectives for their hard work on this case and the U.S. Attorney’s Office for the Southern District of New York for its partnership in holding these criminals accountable.”
“The alleged actions committed by these two brazen defendants endangered our communities and required precision in our law enforcement operations to safely take them off of our streets to face justice,” said U.S. Marshal for the Southern District of New York, Ricky J. Patel. “The United States Marshals Service and our law enforcement partners’ unwavering commitment to ensure neighborhoods are safe made that a reality.”
As alleged in the Indictment and other documents filed in federal court and based on statements made in public court proceedings:[1]
“A-Town” is a criminal organization based in the Tremont neighborhood of the Bronx and affiliated with the Trinitarios. Since at least 2018, its members and associates have engaged in narcotics trafficking, the use of firearms, and numerous acts of violence against rival gang members. A-Town members have also participated in various fraudulent schemes, including stealing checks from mailboxes and altering and cashing them.
On or about February 7, 2023, COLON and OLIVENCIA confronted an individual (“Victim-1”) outside a Bronx restaurant over money Victim-1 owed OLIVENCIA from the sale of stolen checks. As the encounter escalated, COLON brandished a firearm, and OLIVENCIA drew his own firearm and fired two shots—one striking a nearby bystander (“Victim-2”) and the other striking Victim-1. As COLON and OLIVENCIA fled, another individual (“Victim-3”) produced a firearm and fired at them. COLON returned fire in Victim-3’s direction.
COLON brandishing firearm
Firearms recovered
OLIVENCIA firing his firearm into the crowd
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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 efforts of the NYPD and thanked the Bronx County District Attorney’s Office, the Drug Enforcement Administration, the U.S. Marshals Service, and the NYPD Intelligence Division’s Intelligence Analysis Unit for their assistance.
The case is being prosecuted by the Office’s Violent Organizations and Crime Unit. Assistant U.S. Attorneys Timothy Ly and Dominic A. Gentile are in charge of the prosecution.
The charges in the Indictment are merely accusations and the defendants are presumed innocent unless and until proven guilty.
ChargeDefendantsMinimum and Maximum PenaltiesCount One
Racketeering Conspiracy
18 U.S.C. § 1962(d)
ALEJANDRO COLON
OSCAR OLIVENCIA
Maximum: 20 years in prisonCount Two
Assault with a Dangerous Weapon and Attempted Assault with a Dangerous Weapon in Aid of Racketeering
18 U.S.C. §§ 1959(a)(3) and (a)(6), and 2
ALEJANDRO COLON
OSCAR OLIVENCIA
Maximum: 20 years in prisonCount Three
Firearms Offense
18 U.S.C. §§ 924(c)(1)(A)(i), (ii), and (iii), and 2
ALEJANDRO COLON
OSCAR OLIVENCIA
Maximum: Life in prison
Minimum: 10 years in prison, which must be consecutive to any other term imposed
Count Four
Assault with a Dangerous Weapon in Aid of Racketeering
18 U.S.C. §§ 1959(a)(3) and 2
ALEJANDRO COLON
OSCAR OLIVENCIA
Maximum: 20 years in prisonCount Five
Firearms Offense
18 U.S.C. §§ 924(c)(1)(A)(i), (ii), and (iii), and 2
ALEJANDRO COLON
OSCAR OLIVENCIA
Maximum: Life in prison
Minimum: 10 years in prison, which must be consecutive to any other term imposed
Count Six
Attempted Murder, Assault with a Dangerous Weapon, and Attempted Assault with a Dangerous Weapon in Aid of Racketeering
18 U.S.C. §§ 1959(a)(3), (a)(5), (a)(6), and 2
ALEJANDRO COLON
OSCAR OLIVENCIA
Maximum: 20 years in prisonCount Seven
Firearms Offense
18 U.S.C. §§ 924(c)(1)(A)(i), (ii), and (iii), and 2
ALEJANDRO COLON
OSCAR OLIVENCIA
Maximum: Life in prison
Minimum: 10 years in prison, which must be consecutive to any other term imposed
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth in this release constitute only allegations, and every fact described should be treated as an allegation.
Florida Man Arrested for 1993 Execution-Style Murders of Husband and Wife in the BronxRead the Press Release
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”), Michael Alfonso, and Commissioner of the New York City Police Department (“NYPD”), Jessica S. Tisch, announced today the arrest of WILLIAM ANTONIO SOLIS, a/k/a “Vegano,” a/k/a “La Vega,” in connection with the June 21, 1993, execution-style murders of Luis Guerrero and his wife, Danis Sime, in the Bronx. SOLIS was arrested earlier today in Tampa, Florida, by HSI agents and is expected to be presented later this afternoon before U.S. Magistrate Judge Lindsay Saxe Griffin in the Middle District of Florida. The case has been assigned to U.S. District Judge Laura Taylor Swain.
“For more than 30 years, this Bronx double murder has haunted a family and the people of New York,” said U.S. Attorney Jay Clayton. “That ends today. This Office always will pursue perpetrators of violence, and time is no bar to our investigation and prosecution of these horrific crimes. We will always pursue justice for victims in New York and elsewhere.”
“The defendant in this case allegedly executed two New Yorkers in cold blood over 30 years ago, right in front of their three-year-old child,” said NYPD Commissioner Jessica S. Tisch. “Today’s indictment sends a clear message: the NYPD will always work to make sure criminals are held accountable, no matter how long it takes or how far they may run. This long-term investigation underscores the tireless efforts of our NYPD investigators, in collaboration with our partners at HSI, who were undeterred in solving these brutal murders. I thank the U.S. Attorney’s Office for the Southern District of New York for its partnership in bringing these charges.”
“As alleged, William Solis spent decades hiding in plain sight more than a thousand miles from where he viciously murdered the Guerreros in front of their young child,” said HSI Acting Special Agent in Charge Michael Alfonso. “This arrest is the result of years of meticulous investigative work by dedicated special agents and task force officers who refused to let this case go cold. Regardless of the time that has passed or the distance traveled, HSI New York, together with the Southern District of New York and the NYPD, will stop at nothing to ensure those responsible for senseless violence face justice on behalf of New Yorkers.”
As alleged in the Indictment, other documents filed in federal court, and statements made in public court proceedings:[1]
On or about June 21, 1993, SOLIS and two co-conspirators participated in the planned robbery of Guerrero, a narcotics supplier, at an apartment in the Bronx. During the course of that robbery, SOLIS and his co-conspirators restrained Guerrero, took his drugs, then lured his wife, Danis Sime, into the apartment, where she too was overpowered and bound. SOLIS then executed both victims by shooting them in the head. The murders were carried out in the presence of the victims’ three-year-old child.
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SOLIS, 62, of Tampa, Florida, is charged with intentional killing while engaged in a narcotics conspiracy, which carries a mandatory minimum sentence of 20 years in prison and a maximum sentence of life in prison or death.
The minimum and maximum potential sentences 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’s Violent Gang Task Force, the NYPD, and the Special Agents of the U.S. Attorney’s Office for the Southern District of New York. Mr. Clayton also thanked U.S. Customs and Border Protection, the U.S. Attorney’s Office for the Middle District of Florida, HSI Tampa and the Tampa Police Department for their assistance in this investigation.
This case is being handled by the Office’s Violent Organizations and Crime Unit. Assistant U.S. Attorneys Dominic A. Gentile and Joseph H. Rosenberg are in charge of the prosecution.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth in this release constitute only allegations, and every fact described should be treated as an allegation.
Former Commercial Real Estate Vice President Convicted at Trial of Fraud and Identity Theft OffensesRead the Press Release
Attorney for the United States, Sean S. Buckley, announced today that JARED SOLOMON, a former vice president of leasing at the commercial real estate company Vornado Realty Trust, was convicted of wire fraud, aggravated identity theft, and bank fraud, in connection with a years-long scheme to defraud his former employer, forge signatures, and lie to banks. The defendant was found guilty following a one-week jury trial before U.S. District Judge Loretta A. Preska.
“Jared Solomon engaged in a decade-long scheme to defraud his former employer of over $9.5 million,” said Deputy U.S. Attorney Sean S. Buckley. “Solomon submitted fake invoices and agreements for work never performed, concealing his identity behind forged signatures and sham businesses he set up to receive the payments. Using the fraudulent proceeds, Solomon purchased real estate and other luxury goods. This Office is committed to holding accountable those who seek to defraud, deceive, and victimize others through lies, misrepresentations, and identity theft.”
According to the Indictment, statements made in public court proceedings and filings, and the evidence at trial:
Beginning in 2009, SOLOMON, a Vornado leasing agent, created fake commercial real estate broker companies. Over approximately the next fourteen years, SOLOMON lied to his then-employer, Vornado Realty Trust, by claiming that brokers were owed broker fees or construction reimbursement expenses on certain commercial real estate deals that he worked on. In fact, no work had been performed on those deals, and the payments were sent to bank accounts that SOLOMON controlled in the names of his fake businesses. SOLOMON spent the fraud proceeds on a $4.5 million house in Purchase, New York; an apartment in the Upper East Side; a country club membership; and a Porsche, among other luxury expenses. SOLOMON also forged the signatures of real people on the fake agreements that he submitted to his employer, provided a fraudulent business certificate to a bank to open a business bank account, and provided false information and a doctored bank statement to a mortgage lender to obtain an $850,000 mortgage loan. SOLOMON made approximately $9.5 million from his scheme to defraud Vornado.
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SOLOMON, 48, of New York, New York, was convicted of one count of wire fraud, which carries a maximum sentence of 20 years in prison, one count of aggravated identity theft, which carries a mandatory consecutive sentence of two years in prison, and two counts of bank fraud, which each carries a maximum sentence of 30 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. Sentencing is scheduled for August 4, 2026.
Mr. Buckley praised the outstanding investigative work of the U.S. Postal Inspection Service.
This case is being handled by the Office’s General Crimes Unit. Assistant U.S. Attorneys Adam Z. Margulies, Rita K. Maxwell, Joe Zabel, and Daniel C. Richenthal are in charge of the prosecution, with assistance from Paralegal Specialists Saadhana Jakka and Olivia Sebade.
Dutchess County Couple Charged in Credit Card and Identity Theft SchemeRead the Press Release
United States Attorney for the Southern District of New York, Jay Clayton, and Inspector in Charge of the New York Division of the U.S. Postal Inspection Service (“USPIS”), Ketty Larco-Ward, announced today the arrest of OPEYEMI OLUJOBI, a/k/a “Tyler Olujobi,” and JENNIE DAVIDSON. OLUJOBI and DAVIDSON are charged with using stolen credit cards in the names of hundreds of victims, which they had mailed to them as part of a conspiracy to fraudulently take over those victims’ accounts and make over half a million dollars in unauthorized purchases. OLUJOBI and DAVIDSON were arrested in Poughkeepsie, New York, this morning and are expected to appear this afternoon in White Plains federal court before U.S. Magistrate Judge Andrew E. Krause.
“As alleged, Tyler Olujobi and Jennie Davidson enriched themselves by impersonating hard-working New Yorkers and exploiting the good credit their victims had spent years building,” said U.S. Attorney Jay Clayton. “After using the U.S. Postal Service to further their scheme, the defendants embarked on a half-million-dollar spending spree at retail stores across the Tri-State Area. This Office and our law enforcement partners are committed to protecting New Yorkers from thieves who profit from other people’s hard-earned credit, and we will continue to bring perpetrators of these shameless fraud schemes to justice.”
“The U.S. Postal Inspection Service is firmly committed to investigating those who use the U.S. Mail to steal personally identifying information and take advantage of the American public,” said USPIS Inspector in Charge Ketty Larco-Ward. “The deliberate use of someone else’s identity for financial gain will not be tolerated, and postal inspectors will continue to work tirelessly to put a stop to complex bank and mail fraud schemes such as this.”
As alleged in the Complaint:[1]
From at least May 2023 through October 2024, OLUJOBI, DAVIDSON, and/or their co-conspirators contacted a publicly traded consumer financial services company (“Victim Bank-1”) and used other people’s names, Social Security numbers, dates of birth, phone numbers, and addresses to falsely identify themselves as the true accountholders of over 200 store credit card accounts. After gaining access to the cardholders’ accounts, the perpetrators changed the address listed on the account to one of four addresses in Hopewell Junction, New York (one of which was OLUJOBI and DAVIDSON’s residence). They also changed victims’ phone numbers to one of many controlled by participants in the scheme. Once they completed these steps, the perpetrators reported the victims’ card lost or stolen and requested that a new card be shipped to the address on file (i.e., one of the Hopewell Junction addresses).
After they obtained their victims’ credit cards, OLUJOBI, DAVIDSON, and/or their co-conspirators used those cards at various retail locations to make around $575,000 in unauthorized purchases of gift cards and other merchandise. Video surveillance associated with many of these transactions shows OLUJOBI and DAVIDSON using the stolen cards. If a transaction was declined or a credit limit was approached, OLUJOBI, DAVIDSON, and/or their co-conspirators promptly contacted Victim Bank-1 and requested to have the charges approved or the credit limit raised. At times, DAVIDSON disposed of the proceeds of certain fraudulent transactions by loading tens of thousands of dollars of her fraud proceeds into an online betting account to obscure the illicit source and then transfer those funds into her personal bank account.
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OLUJOBI, 28, and JENNIE DAVIDSON, 29, both of Poughkeepsie, New York, are each charged with conspiracy to commit mail fraud, wire fraud, and bank fraud, which carries a maximum sentence of 30 years in prison; conspiracy to commit access device fraud, which carries a maximum sentence of seven and a half years in prison; access device fraud, which carries a maximum sentence of 15 years in prison; and aggravated identity theft, which carries a mandatory minimum sentence of two years in prison. DAVIDSON is also charged with money laundering, 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 defendants will be determined by the judge.
Mr. Clayton praised the outstanding efforts of the USPIS.
The prosecution is being handled by the Office’s White Plains Division. Assistant U.S. Attorneys Reyhan Watson and Isabelle Lelogeais are in charge of the prosecution.
[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.
Settlement of Fair Housing Act Lawsuit over Access for Persons with DisabilitiesRead the Press Release
United States Attorney for the Southern District of New York, Jay Clayton, announced today that the United States has settled a federal Fair Housing Act (“FHA”) lawsuit against LETTIRE CONSTRUCTION CORP. (“LETTIRE”) and other parties involved in the design and construction of the Chestnut Commons rental building located in Brooklyn. Through three settlements filed in federal court (two of which were filed previously), LETTIRE and other defendants in the lawsuit have agreed to make retrofits at three rental buildings: The Tapestry located in Manhattan, the Atrium at Sumner located in Brooklyn, and Chestnut Commons located in Brooklyn. The parties further agreed to provide up to $100,000 to compensate aggrieved persons who sustained damages from inaccessible conditions at The Tapestry and Chestnut Commons, the retrofits at the Atrium at Sumner having been made prior to occupancy. The parties also agreed to pay civil penalties totaling $70,000.
The settlement with the parties who designed and constructed Chestnut Commons was approved today by U.S. District Judge Alvin K. Hellerstein, thereby resolving the case. On April 29, 2025, Judge Hellerstein approved a settlement with the parties who designed and constructed The Tapestry, and a settlement with the parties who designed and constructed the Atrium at Sumner.
“The Fair Housing Act is about whether people with disabilities can actually live in and move through their homes—in other words, Fair Access means just that,” said U.S. Attorney Jay Clayton. “As alleged, these buildings were constructed with barriers—high thresholds, inaccessible bathrooms—that can make daily life difficult or even impossible for those with disabilities. New Yorkers want their neighbors with disabilities to have housing they can access and use, and we will continue to enforce the law to ensure they have it. We appreciate the cooperation of Lettire and its partners in working constructively with the government and in committing to remedying these conditions.”
The FHA’s accessible design and construction provisions require multifamily housing complexes constructed after January 1991 to have basic features accessible to persons with disabilities.
According to the allegations in the Complaint, the inaccessible conditions in the buildings that LETTIRE constructed included excessively high thresholds at building entrances and entrances to common use areas, common use bathrooms that lack grab bars and pipe insulation, excessively high thresholds at entrances to individual apartments and within the apartments, and bathrooms in individual apartments that lack sufficient clear floor space for people who use wheelchairs. The Complaint alleges that these features in the common use areas of LETTIRE’s buildings, as well as in the buildings’ apartment interiors, did not meet the specifications set forth in the Fair Housing Accessibility Guidelines, Design Guidelines for Accessible/Adaptable Dwellings.
Under today’s settlement, LETTIRE, CHESTNUT COMMONS HOUSING DEVELOPMENT CORP. and MHANY MANAGEMENT, INC. agreed to make retrofits to the public and common use areas as well as the individual units at Chestnut Commons to improve accessibility. The settlement also requires CHESTNUT COMMONS HOUSING DEVELOPMENT CORP. and MHANY MANAGEMENT, INC. to establish procedures to ensure FHA compliance at its future development projects, including to retain an FHA compliance consultant to assess the design documents and conduct site visits to identify non-compliant conditions. In addition, CHESTNUT COMMONS HOUSING DEVELOPMENT CORP. and MHANY MANAGEMENT, INC agreed to institute policies and training to ensure that its employees and agents will comply with the FHA’s accessibility requirements. LETTIRE agreed to these terms in a previously approved settlement.
Aggrieved persons may be entitled to monetary compensation from the fund created through today’s settlement. Aggrieved individuals may include those who:
- Were discouraged from living at Chestnut Commons because of the lack of accessible features;
- Have been hurt in any way by the lack of accessible features at Chestnut Commons;
- Paid to have an apartment at one of Chestnut Commons made more accessible to persons with disabilities; or
- Otherwise were discriminated against on the basis of disability at Chestnut Commons as a result of inaccessible design and construction.
The Office has reached over two dozen agreements in recent years with developers and architects to remedy inaccessible housing in this District, including suits against The Durst Organization, Glenwood Management, Silverstein Properties, Related Companies, Atlantic Development, and Toll Brothers.
Any individual who may be entitled to compensation can file a claim by using the Civil Rights Complaint Form available on the United States Attorney’s Office’s website http://www.justice.gov/usao/nys/civilrights.html, or by sending a written claim to:
U.S. Attorney’s Office, Southern District of New York
86 Chambers Street, 3rd Floor
New York, New York 10007
Attention: Chief, Civil Rights Unit
The case is being handled by the Office’s Civil Rights Unit in the Civil Division. Assistant U.S. Attorney Danielle J. Marryshow is in charge of the case.
New York Physician Pleads Guilty to Multimillion-Dollar Covid-19 Insurance Fraud SchemeRead the Press Release
Attorney for the United States, Acting under Authority Conferred by 28 U.S.C. § 515, Sean S. Buckley, announced that ALI RASHAN, a medical doctor and the CEO and founder of ClearMD LLC, a provider of COVID-19 testing services in New York City, pled guilty to fraudulently billing insurance companies for COVID-19 testing services and submitting fraudulent medical records in furtherance of his scheme, causing at least $24 million in losses. RASHAN pled guilty today before U.S. District Judge Paul A. Engelmayer.
“Ali Rashan exploited a public health crisis to bill tens of millions in fraudulent claims purportedly filed on behalf of New Yorkers—costs ultimately borne by New York residents and the public more generally,” said Deputy U.S. Attorney Sean S. Buckley. “That kind of conduct will be pursued, investigated, and prosecuted.”
According to statements made in court and publicly filed documents in this case:
RASHAN, an anesthesiologist, founded and ran ClearMD LLC (“ClearMD”), which operated medical clinics that offered testing for COVID-19 during the global coronavirus pandemic. From at least 2021 through 2023, RASHAN, through his ownership and operation of ClearMD, engaged in a widespread scheme to defraud healthcare benefit programs, including Medicare, Medicaid, the Health Resources and Services Administration’s Uninsured Program, and private insurance providers (collectively, the “Insurance Providers”), which ultimately caused losses to the Insurance Providers of over $24 million.
RASHAN opened ClearMD’s first medical clinic in early 2021 and went on to open several others throughout New York City during the pandemic. ClearMD clinics operated primarily as COVID-19 testing facilities. Individuals came to ClearMD for a variety of reasons, including for diagnosis after suspected COVID-19 exposure, or to obtain clearance to engage in certain activities, like returning to work or air travel. ClearMD clinics conducted—and billed for—tens of thousands of COVID-19 tests during the pandemic.
Although the defendant served as ClearMD’s “laboratory director,” he rarely interacted with patients. ClearMD clinics were typically staffed not with licensed doctors or nurses, but with “medical assistants,” many of whom were college-aged and had no formal training in healthcare prior to working at ClearMD. Medical assistants swabbed patients and typically put their sample into a machine, which processed the test. Test results were then emailed to patients. Medical assistants generally took patient vitals, but there were typically no licensed doctors on site to conduct physical exams of patients, take pertinent medical history, or answer any questions a patient might have.
Even so, ClearMD often advertised itself as a full-service testing clinic. Many patients who booked an appointment received an email confirmation from ClearMD, which stated that the appointment would include not only a “COVID-19 Diagnostic Test” but also a “Focused patient exam” and a “Follow up telehealth visit to discuss your results.” In practice, however, patients did not receive the level of care that was claimed in ClearMD’s email confirmations. Instead, patients typically (1) were not given a “Focused patient exam,” or any physical exam, at the time of testing; (2) were never seen by a qualified healthcare professional and instead interacted only with a medical assistant who performed a swab for a single COVID-19 test; and (3) had no such “telehealth” visit following receipt of their test results, which were instead emailed to them, with no medical guidance.
In addition to advertising services that it ultimately did not provide to patients, during certain periods, ClearMD also routinely billed Insurance Providers for multiple services it did not provide. For example, RASHAN directed ClearMD to submit or cause the submission of thousands of claims that billed for evaluation and management (“E/M”) services that were never performed and for two to four COVID-19 testing codes, even though ClearMD had administered only a single COVID-19 test to patients. Insurance Providers were frequently billed as much as $5,000 for a single COVID-19 test administered by ClearMD.
By in or around early 2022, Insurance Providers requested that ClearMD provide documentation, such as progress notes of patient encounters and test results, to support its claims for reimbursement. At the time, at least one Insurance Provider also requested a refund of millions of dollars that the Insurance Provider believed to have been fraudulently paid to ClearMD. In response to such requests, the defendant instructed ClearMD staff to write a software program to generate fake medical records to support ClearMD’s fraudulent billings. Specifically, the defendant instructed ClearMD staff to write software that would fabricate (1) patient progress notes that it could use to justify billing for E/M codes; and (2) test results for patient visits that it could use to justify ClearMD’s billing for COVID-19 testing codes. Thereafter, ClearMD staff wrote software that created fabricated records. The fake patient progress notes typically included both information that was collected at the time of patient visits to ClearMD (e.g., vitals such as heart rate, temperature, and blood oxygen saturation) and information that was never collected (e.g., information for physical examinations that never occurred). Similar to the fabricated progress notes, the fake test result records contained information that was fabricated by ClearMD. For example, where the full results of a patient’s panel test for COVID-19, RSV, and influenza were not available, the software was written to indicate that the results of the RSV and influenza components of the test were negative.
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RASHAN, 42, of New York, New York, pled guilty to one count of conspiracy to commit health care fraud and one count of false statements relating to health care matters, each of 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. RASHAN will be sentenced by Judge Engelmayer on September 22, 2026.
Mr. Buckley praised the outstanding investigative work of the Federal Bureau of Investigation. Mr. Buckley also thanked the Office of Personnel Management’s Office of Inspector General and the U.S. Department of Labor, Employee Benefits Security Administration for their assistance in this investigation.
This case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Timothy V. Capozzi, Jackie Delligatti, and Qais Ghafary are in charge of the prosecution.
On April 7, the Department of Justice announced the creation of the National Fraud Enforcement Division. The core mission of the Fraud Division is to zealously investigate and prosecute those who steal or fraudulently misuse taxpayer dollars. Department of Justice efforts to combat fraud support 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.
U.S. Attorney Charges Rockland County Man with Sexual Exploitation of A ChildRead the Press Release
United States Attorney for the Southern District of New York, Jay Clayton, announced the filing of a Complaint charging ALBER RODRIGEZ with sexual exploitation of a minor. RODRIGUEZ was arrested yesterday, presented before U.S. Magistrate Judge Judith C. McCarthy in White Plains federal court, and detained.
“As alleged, Alber Rodriguez sexually abused a 12-year-old child and recorded that abuse—conduct that is as cruel as it is criminal,” said U.S. Attorney Jay Clayton. “This Office has zero tolerance for those who prey on children. Protecting New Yorkers, especially our youngest and most vulnerable, is our priority. If you exploit a child in this District, we will find you, we will charge you, and we will prosecute you to the fullest extent of the law. We will not stop until those who endanger our children are taken off our streets and held fully accountable.”
As alleged in the Complaint:[1]
On or about April 11, 2026, an individual (“Witness-1”) reported to the Ramapo Police Department that Witness-1 had observed sexually explicit images of a minor (“Victim-1”) on a cellphone belonging to RODRIGUEZ.
The images discovered by Witness-1 appeared in the photo gallery of RODRIGUEZ’s cellphone. The images appeared consecutively (one after another) in the photo gallery and were taken at a location in Rockland County, New York, on or about September 10, 2024, and September 13, 2024, when Victim-1 was 12 years old.
Victim-1, who is now 13 years old, disclosed that RODRIGUEZ sexually abused Victim-1 on numerous occasions over the past two years, and on at least one occasion when Victim-1 was in Rockland County, RODRIGUEZ took photos of Victim-1 naked.
On about April 11, 2026, RODRIGUEZ was arrested and charged in the Justice Court Village of Montebello, in Rockland County with Course of Sexual Conduct against a Child in the 1st Degree, Sexual Abuse, Possessing an Obscene Sexual Performance by a Child, and Sexual Misconduct, among other charges.
There may be other victims. If you have information to report, please contact the FBI at 1-800-CALL-FBI (1-800-225-5324) or https://tips.fbi.gov.
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RODRIGUEZ, 48, of Montebello, New York, is charged with one count of sexual exploitation of a child, which carries a mandatory minimum sentence of 15 years in prison and a maximum sentence of 30 years in prison.
The statutory minimum and 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 the judge.
Mr. Clayton praised the efforts of the Federal Bureau of Investigation, the Ramapo Police Department, the Rockland County Sheriff’s Office, and the Rockland County District Attorney’s Office in connection with this investigation.
The prosecution is being handled by the Office’s White Plains Division. Assistant U.S. Attorneys Samantha Briggs and Marcia S. Cohen are in charge of the prosecution.
[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.
Defendant Sentenced to Prison for Hacking Betting WebsiteRead the Press Release
United States Attorney for the Southern District of New York, Jay Clayton, announced today that KAMERIN STOKES, a/k/a “TheMFNPlug,” was sentenced to 30 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. STOKES was sentenced today before U.S. District Judge Naomi Reice Buchwald. On April 25, 2024, STOKES pled guilty to one count of conspiring to commit computer intrusion.
“Kamerin Stokes victimized thousands of users of an online betting website though a cyberattack,” said U.S. Attorney Jay Clayton. “After pleading guilty to federal crimes, Stokes audaciously reopened his criminal business, marketed using the tagline ‘fraud is fun,’ and said that he opened the new Shop in part because ‘gotta pay my attorneys,’ referring to his prosecution in this case. Fraud is not fun; fraud on the street or fraud online will not be tolerated. Today’s federal prison sentence is a direct message to any others who think online fraud is different.”
According to the charging documents and other filings and statements made in court:
On or about November 18, 2022, several individuals 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 be purchased on the dark web. The threat actor then systematically attempts to use those stolen credentials to obtain unauthorized access to accounts held by the same user with other companies and providers, in order to compromise accounts where the user has maintained the same password. Here, in connection with the attack on the Betting Website, there was a series of attempts to log into the Betting Website accounts using a large list of stolen credentials.
Those individuals successfully accessed approximately 60,000 accounts at the Betting Website (the “Victim Accounts”) through the credential stuffing attack. In some instances, the individuals who unlawfully accessed the Victim Accounts were able to add a new payment method on the account, deposit $5 into that account through the new payment method to verify that method, and then withdraw all the existing funds in the Victim Account through the new payment method (i.e., to a newly added financial account belonging to the hacker), thus stealing the funds in the Victim Account.
Access to the Victim Accounts was sold on various websites that traffic in stolen accounts, which are frequently referred to as “Shops.” STOKES controlled his own Shop, used the alias “TheMFNPlug,” and purchased Victim Accounts in bulk. STOKES obtained Victim Accounts from the Betting Website with a total listed account value of over $125,000 and then offered access to those accounts for sale on his Shop.
After pleading guilty, STOKES reopened his Shop website, offering for sale access to stolen accounts of various retailers. STOKES advertised his reopened Shop using the tagline “fraud is fun,” and said that he had been running these types of shops for three years. He further said that he opened the new Shop in part because “gotta pay my attorneys,” referring to his prosecution in this case. After reopening his Shop website, STOKES was rearrested for violating the conditions of his pretrial release and remanded into federal custody.
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In addition to the prison term, STOKES, 23, of Memphis, Tennessee, was sentenced to three years of supervised release and ordered to pay $125,965.53 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.
SantaCon Organizer Charged in Wire Fraud Scheme Targeting Attendees and Host VenuesRead the Press Release
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 Special Agent in Charge of the Newark Field Office of Internal Revenue Service Criminal Investigation (“IRS-CI”), Jennifer L. Piovesan, announced today the unsealing of an Indictment charging STEFAN PILDES with wire fraud. PILDES was arrested today in Manhattan and will be presented before U.S. Magistrate Judge Katharine H. Parker. The case has been assigned to U.S. District Judge Colleen McMahon.
“As alleged, Stefan Pildes promoted SantaCon as an event grounded in charitable giving, but instead of donating the millions of dollars he raised, he ran his own con game,” said U.S. Attorney Jay Clayton. “He took advantage of New Yorkers’ generous holiday spirit to finance his lifestyle through personal expenses, big and small. No matter how you dress it up, fraud is fraud. We are committed to protecting New Yorkers from those who exploit their enthusiasm and generosity.”
“Stefan Pildes, the president of SantaCon, allegedly pocketed over half of the proceeds generated by his nonprofit to make personal purchases,” said FBI Assistant Director in Charge James C. Barnacle, Jr. “Pildes allegedly stole Christmas from tens of thousands of victims and deprived local charities of more than one million dollars. The FBI continues to root out scrooges that greedily exploit the goodwill of New Yorkers.”
“When individuals exploit charitable causes for personal gain, they undermine the trust our communities place in organizations meant to serve the public good,” said IRS-CI Special Agent in Charge Jennifer L. Piovesan. “IRS-CI remains committed to working with our law enforcement partners to uncover deceptive financial schemes and ensure those who abuse their positions for personal enrichment are held accountable.”
According to the allegations contained in the Indictment:[1]
From at least November 2019 through April 2026, PILDES defrauded tens of thousands of individuals and small business owners who participated in a popular, Christmas-themed event organized and promoted by PILDES, referred to as “SantaCon.” SantaCon is a ticketed bar crawl that takes place annually in December in New York City, during which over approximately 25,000 attendees dress as Santa Claus and other holiday characters and travel to participating bars and restaurants throughout the day. At all relevant times, PILDES served as the president of and controlled the nonprofit entity that organizes SantaCon called Participatory Safety, Inc. (“PSI”).
SantaCon primarily generates proceeds through (i) sales of tickets to bar crawl attendees (“Attendees”) and (ii) sales commissions from bars and restaurants that serve as host venues along the bar crawl route (“Venues”). PILDES, through PSI and its representatives, represented to Attendees and Venues that SantaCon was an event to benefit charity.
PILDES maintained a website for SantaCon (the “SantaCon Website”) that was used to promote and communicate information about SantaCon. The SantaCon Website advertised that Attendees who purchased a ticket to SantaCon would receive access to the Venues and that proceeds from ticket sales would be distributed to various charities. For example, in or about December 2024, PILDES promoted on the SantaCon Website that ticket money went “directly to Santa’s charity drive,” and that “[y]our money will be split between the various charities listed on this page as well as local neighborhood charities along Santa’s route.” Additionally, the SantaCon Website described SantaCon as a “charitable, non-political, nonsensical Santa Claus convention.” PILDES also solicited bars and restaurants to participate in SantaCon through representations regarding the event’s charitable mission. Venues that were signed up as official stops on the SantaCon route agreed to give PSI a designated percentage of their food and beverage sales during the event. This contribution was characterized as a “charitable commission” or “donation” and was typically between 10% and 25% of sales. In exchange, PILDES, through PSI and its representatives, agreed to distribute the charitable commission to various charities.
In reality, PILDES defrauded the Attendees and Venues. SantaCon events from 2019 to 2024 generated approximately $2.7 million in proceeds, including over $2 million in ticket sales and over $675,000 in charitable commissions from Venues. PILDES donated only a small fraction of the millions of dollars he raised for charity. Instead, PILDES siphoned off more than half of the charitable proceeds to an entity that PILDES controlled, Creative Opportunities Group, Inc. (“COG”), that had no public connection to SantaCon, where he used these funds freely to finance various personal ventures. PILDES also abused his control over PSI’s bank accounts to spend hundreds of thousands of dollars of the remaining proceeds for his own personal use. Among other things, PILDES spent SantaCon proceeds on extensive renovations to a lakefront property in New Jersey, concert tickets, luxury vacations, extravagant meals, and a luxury vehicle. PILDES did so despite claiming that he did not receive any compensation from SantaCon or PSI. PILDES told one representative of a potential Venue that “[n]o producer receives income from this event, this is a charity event.”
If you have been victimized by STEFAN PILDES, as either an attendee or a venue that participated in SantaCon, please fill out the short form found here: https://www.fbi.gov/SantaConVictims.
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PILDES, 50, of Hewitt, New Jersey, is charged with one count of wire fraud, which carries a maximum sentence of 20 years in prison.
The maximum potential sentence in this case is prescribed by Congress and provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Clayton thanked the FBI and IRS-CI. He also expressed appreciation for the assistance of the U.S. Attorney’s Office for the District of New Jersey.
This case is being supervised by the Office’s General Crimes Unit. Assistant U.S. Attorney Varun A. Gumaste and Special Assistant U.S. Attorney Andrew N. Stahl 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 below constitute only allegations, and every fact described should be treated as an allegation.
Two Men Charged with Narcotics and Firearms Offenses for Running A Fentanyl Manufacturing Facility in A Residential BuildingRead the Press Release
United States Attorney for the Southern District of New York, Jay Clayton, Special Agent in Charge of the New York Task Enforcement Division of the Drug Enforcement Administration (“DEA”), Farhana Islam, and Acting Special Agent in Charge of the New York Field Office of Homeland Security Investigations (“HSI”), Michael Alfonso, announced the arrests of KAREEM ANTOINE TURNER and ALEXANDER DARAVINA on narcotics and firearms charges for operating a fentanyl manufacturing facility in a Brooklyn residential apartment building. TURNER and DARAVINA were arrested on April 13, 2026 and presented today before U.S. Magistrate Judge Katharine H. Parker, where they were ordered detained.
“As alleged, Kareem Turner and Alexander Daravina ran an industrial-scale pill mill in a Brooklyn apartment, pumping deadly fentanyl pills onto the streets of New York in mass quantities,” said U.S. Attorney Jay Clayton. “Fentanyl is poison. It kills New Yorkers every day. If you are dealing in fentanyl, you are dealing in death. Together with our law enforcement partners, we will use all resources available to give New Yorkers what they want and what they deserve: the destruction of these deadly factories and their operators in federal prison.”
“These individuals allegedly transformed an apartment into a fentanyl processing plant: mixing, pressing, and packaging fentanyl alongside other deadly narcotics with absolutely no regard for the health and safety of their neighbors,” said DEA New York Enforcement Division Special Agent in Charge Farhana Islam. “This was not just alleged drug trafficking; it was a potential death sentence to others living in the building. The magnitude of this alleged operation, which resulted in the seizure of two pill press machines, one capable of producing thousands of deadly pills per hour, as well as two kilo press machines, underscores the scale and lethality of the threat we face every day. Restoring safety to our neighborhoods is critical, but above all, saving lives remains our top priority.”
“For years, HSI New York special agents and investigators have confronted the devastating impacts of fentanyl and other illicit narcotics, which fracture families, corrode neighborhoods, and turn ordinary apartments into covert pill mills that imperil entire communities,” said HSI Special Agent in Charge Michael Alfonso. “These arrests are a stark reminder that these crimes are not just numbers on a page, but direct threats to the public's safety and well-being. Through the disciplined collaboration of HSI New York, DEA New York, the U.S. Attorney’s Office for the Southern District of New York, and our Homeland Security Task Force partners, we are committed to safeguarding our city and dismantling the criminal enterprises that profit from poison in our neighborhoods.”
According to the allegations contained in the Complaint:[1]
TURNER and DARAVINA converted a residential apartment in Brooklyn into a “Pill Mill” where they manufactured, stored, and sold kilograms of drugs, including fentanyl. The Pill Mill contained an industrial-scale pill-press machine capable of manufacturing approximately 4,800 tablets per hour, a hand-cranked pill-press machine, two kilogram presses, and other industrial-grade equipment.
Electronic evidence gathered during the investigation revealed multiple pictures of the Pill Mill; messages in which TURNER and DARAVINA discussed the assembly of the pill-press machine; documents, including a troubleshooting guide and handwritten notes, relating to the manufacture of fentanyl; and FaceTime screenshots in which DARAVINA is seen examining drugs and guns. Some of these photographs are included below:
Handwritten Summary of Fentanyl Ingredients
DARAVINA Looking at Bags Containing Narcotics During a FaceTime Call
On April 13, 2026, DEA and HSI agents searched the Pill Mill pursuant to a judicially authorized search warrant and found kilograms of fentanyl and other narcotics in powder and pill form, along with kilograms of ingredients used in the manufacture of fentanyl. They also recovered two loaded guns hidden in a speaker inside the Pill Mill. One of the guns had an extended magazine. In ongoing testing, multiple kilograms of suspected narcotics found in the Pill Mill have tested positive for fentanyl. Photographs from inside the Pill Mill that law enforcement agents took while executing the search warrant are below:
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TURNER, 47, of Brooklyn, New York, and DARAVINA, 45, of the Bronx, New York, are each charged with (i) conspiring to distribute and to possess with intent to distribute 400 grams and more of fentanyl, which carries a mandatory minimum sentence of 10 years in prison and a maximum sentence of life in prison, and (ii) using a firearm during and in relation to, and possessing a firearm in furtherance of, that drug trafficking crime, which carries a mandatory minimum sentence of five years in prison, which must be served consecutive to any other prison term imposed, and a maximum term 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 defendants will be determined by the judge.
Mr. Clayton praised the outstanding investigative work of the DEA and HSI. Mr. Clayton also thanked the New York State Police for its assistance in this case.
This case is being handled by the Office’s Narcotics Unit. Assistant U.S. Attorneys Getzel Berger and Joseph H. Rosenberg are in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth below constitute only allegations, and every fact described should be treated as an allegation.
Sexual Predator Sentenced to 135 Months in Prison for Enticement of A Minor – Currently Awaiting Trial on State Murder ChargesRead the Press Release
United States Attorney for the Southern District of New York, Jay Clayton, Rockland County Sheriff, Louis Falco III, and Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), James C. Barnacle, Jr., announced that ANTHONY MITCHELL was sentenced today to 135 months in prison by U.S. District Judge Vincent L. Briccetti for enticement and coercion of a minor spanning multiple years when the victim was 13 and 14 years old.
“Anthony Mitchell is a sexual predator,” said U.S. Attorney Jay Clayton. “He enticed a 14-year-old victim numerous times, both in person and while incarcerated and awaiting trial on state charges for a 2022 murder. New Yorkers know how important it is that Anthony Mitchell and those like him are off the streets. This Office will use all our tools to deliver on that mission. We ask that all New Yorkers be proactive and vigilant in holding predators accountable and ensuring every child can grow up free from exploitation. Individuals with information concerning the sexual exploitation of children are urged to call 1-800-CALL-FBI (1-800-225-5324) or use the tips page: https://tips.fbi.gov.”
“The Rockland County Sheriff’s Office was proud to work alongside our federal partners, including the FBI and the United States Attorney’s Office, in this investigation,” said Rockland County Sheriff Louis Falco III. “Through strong collaboration and a shared commitment to protecting our community, our collective efforts helped lead to the successful prosecution and sentencing of an individual who preyed on a child. Those who exploit the most vulnerable members of our society will be identified, investigated, and held fully accountable under the law.”
“Already incarcerated, Anthony Mitchell’s depravity extended beyond the walls of his cell as he continued to seek sick satisfaction from the sexual coercion and exploitation of a young teenage girl,” said FBI Assistant Director in Charge James C. Barnacle, Jr. “The FBI continues to stand alongside our local law enforcement partners to hold accountable sexual predators who target our communities’ children.”
According to documents filed in this case and statements made in related court proceedings:
Between January 2021 and September 2022, MITCHELL induced a 14-year-old female minor (the “Victim”) to create sexually explicit photographs and videos of herself and send them to him.
In or about July 2022, MITCHELL was arrested on state murder and other charges and incarcerated at the Rockland County Jail. For a period of months while incarcerated awaiting trial, the defendant continued to communicate with and demand sexually explicit material from the Victim, which the Victim created and sent to MITCHELL at his direction.
Individuals with information concerning the sexual exploitation of children are urged to call 1-800-CALL-FBI (1-800-225-5324) or use the online tips page: https://tips.fbi.gov.
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In addition to the prison term, MITCHELL, 26, of Haverstraw, New York, was sentenced to five years of supervised release.
Mr. Clayton praised the efforts of the Federal Bureau of Investigation, the Rockland County Sheriff’s Office, the Town of Haverstraw Police Department, the Town of Ramapo Police Department, and the Village of Spring Valley Police Department. Mr. Clayton also thanked the Rockland County District Attorney’s Office for its assistance in this case.
The prosecution is being handled by the Office’s White Plains Division. Assistant U.S. Attorneys Ben Arad, Kathryn Wheelock, and Jeffrey C. Coffman are in charge of the prosecution.
Justice Department Announces Compensation Process for OneCoin Fraud Victims with Funds Recovered Through Asset ForfeitureRead the Press Release
Today, the Department of Justice announced the beginning of the remission compensation process to provide recovery for victims of the international investment scheme involving OneCoin Ltd.
Between 2014 and 2019, Ruja Ignatova and Karl Sebastian Greenwood, co-founders of OneCoin Ltd. (OneCoin), and others orchestrated a large, international cryptocurrency investment scheme defrauding investors from around the globe. OneCoin, which began operations in 2014 and was based in Sofia, Bulgaria, marketed and sold a fraudulent cryptocurrency by the same name through a global multi-level-marketing (MLM) network. As a result of misrepresentations made about OneCoin, victims invested over $4 billion worldwide in the fraudulent cryptocurrency. The Department of Justice filed a number of OneCoin-related prosecutions in the Southern District of New York. Several key figures involved in the scheme have been sentenced, and the Department pursued criminal forfeiture of property derived from the proceeds of the fraud scheme. More than $40 million in forfeited assets are currently available for victim compensation.
Through the remission process, victims who purchased the fraudulent OneCoin cryptocurrency between 2014 and 2019 may be eligible for compensation. Individuals who believe they may be victims may obtain a petition form online at www.onecoinremission.com. Victims may also call, email, or write to the Remission Administrator to request that a Petition Form be sent to them. The deadline for filing a petition is June 30. The Criminal Division’s Money Laundering, Narcotics and Forfeiture Section manages the remission compensation process.
“Victims are at the core of everything we do at the Department of Justice,” said Assistant Attorney General A. Tysen Duva of the Justice Department's Criminal Division. “As we did in this complex investment fraud case, the Department pursues forfeiture to take the profit out of crime and then use that money to compensate victims wherever possible. I commend the efforts of our colleagues in the Southern District of New York, our law enforcement partners, and our Money Laundering, Narcotics and Forfeiture Section, which manages the Asset Forfeiture Program, for all of their work on behalf of the victims in this important case.”
“Between 2014 and 2019, OneCoin’s founders sold a lie disguised as cryptocurrency, costing victims more than $4 billion worldwide,” said U.S. Attorney Jay Clayton for the Southern District of New York. “Today’s announcement marks an important step toward returning funds to those harmed. While no recovery can fully undo the damage, our Office will continue working to seize criminal proceeds and prioritize getting money back into the hands of victims. If you believe you may be a victim of OneCoin, you may obtain a petition form online at www.onecoinremission.com.”
“The victim losses accrued in this case are monumental,” said Assistant Director in Charge James C. Barnacle Jr of the FBI New York Field Office. “Misled by falsified statements and empty promises, many unknowingly depleted their savings for a fraudulent investment scheme in an emerging financial ecosystem that would never pay out. With the unwavering support from the Department of Justice, the FBI maintains its commitment to returning these stolen funds to their rightful owners. Our office will continue its investigative pursuit of these criminal fraudsters — especially locating Ruja Ignatova, an FBI Top Ten Fugitive — alongside our partners at the Internal Revenue Service Criminal Investigation (IRS-CI) and the Southern District of New York. Any information concerning this fugitive can be submitted online at tips.fbi.gov or via our tipline at 1-800-CALL-FBI.”
“The victims of the OneCoin scheme were misled and financially devastated by promises that were never real,” said Special Agent in Charge Jenifer L. Piovesan of IRS-CI. “Alongside our law enforcement partners, we worked tirelessly to trace illicit funds and recover them for victims. This compensation process represents a critical step toward returning stolen assets to those who were deceived. IRS-CI remains steadfast in its mission to follow the money and dismantle complex financial fraud schemes like OneCoin.”
More information regarding the remission process, including eligibility criteria, updates, and frequently asked questions are available at www.onecoinremission.com or by calling 1-833-421-9748. Kroll Settlement Administration LLC is serving as the remission administrator in this matter.
The FBI and IRS-CI conducted the criminal fraud investigation. The Justice Department’s Office of International Affairs (OIA) provided significant assistance.
The Department of Justice, through the Asset Forfeiture Program, works diligently to compensate victims of crime. Since 2000, the Criminal Division’s Money Laundering, Narcotics and Forfeiture Section (MNF), which oversees the Asset Forfeiture Program’s victim compensation program, has returned more than $12.5 billion in forfeited assets to victims of crime. MNF Attorney Advisor Drew Halter with the section’s Program Management and Training Unit is leading the remission process.
Neither the Remission Administrator nor the Department of Justice will ask for any payment to participate in this remission process. Please be cautious of any individual or organization claiming to represent the Remission Administrator or the federal government in this matter. If you are a victim, any communications will come directly from the Remission Administrator or from government representatives with whom you have already had contact.
PSA: FBI Warns of the Impersonation of Law Enforcement and Government Officials https://www.ic3.gov/PSA/2025/PSA250418
PSA: Fictitious Law Firms Targeting Cryptocurrency Scam Victims Combine Multiple Exploitation Tactics While Offering to Recover Funds https://www.ic3.gov/PSA/2025/PSA250813
How To Avoid a Government Impersonation Scam https://consumer.ftc.gov/articles/how-avoid-government-impersonation-scam
Federal Judge Revokes Naturalization of Violent ExtortionistRead the Press Release
Today the Justice Department announced that the U.S. District Court for the Southern District of New York revoked the naturalized U.S. citizenship of Michael Pizzuti, a native of Italy, after finding that he had illegally procured his citizenship. The court determined that Pizzuti had committed crimes involving moral turpitude and unlawful acts and had given false testimony about those crimes during his naturalization proceedings, all of which prevented him from establishing the good moral character necessary to naturalize. The court additionally found that Pizzuti obtained his naturalization through fraudulent concealment and willful misrepresentations of material fact relating to his crimes.
From July 1998 through August 2000, Pizzuti dealt in counterfeit money, trafficked contraband cigarettes, and conspired to steal a truck and commit mail fraud. He was arrested and indicted for those crimes on December 5, 2001, pleaded guilty, and was sentenced to 15 months’ imprisonment. Then, between May 2001 and September 30, 2001, Pizzuti violently extorted his financial advisor after discovering that the advisor was running a Ponzi scheme with Pizzuti’s money. Pizzuti broke into his house, held him at gunpoint, ordered him to maintain the Ponzi scheme until he had enough money to pay back Pizzuti’s investment, and then destroyed computer records to hide his crimes. For that violent extortion and obstruction of justice, Pizzuti was convicted in 2005 (after he naturalized) and sentenced to 17½ years in prison.
“Violent criminals like this have no place in our society, and when they lie about those crimes to obtain U.S. citizenship, this Administration will stop at nothing to correct that travesty,” said Assistant Attorney General Brett A. Shumate of the Justice Department’s Civil Division.
But on May 2, 2002 — less than five months after his first indictment and arrest — Pizzuti appeared at his naturalization interview and falsely testified, under oath, that he had never been arrested and had never committed a crime for which he had not been arrested. Based on that false testimony, Pizzuti naturalized unlawfully on July 24, 2002.
Pizzuti’s naturalization revocation case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the ICE Office of the Principle Legal Advisor. The cases were civilly prosecuted jointly by the Civil Division’s Office of Immigration Litigation, Affirmative Litigation Unit and the U.S. Attorney’s Office for the Southern District of New York. Pizzuti’s underlying criminal cases were prosecuted by the U.S. Attorney’s Office for the Southern District of New York.
Navy Reservist Pleads Guilty to Fraudulently Obtaining Tens of Thousands of Dollars of Military Leave Pay from the Department of CorrectionRead the Press Release
United States Attorney for the Southern District of New York, Jay Clayton, and Acting Commissioner of the New York City Department of Investigation (“DOI”), Christopher Ryan, announced that Leah Mathieu, a correction officer with the New York City Department of Correction (“DOC”) and a Sailor in the United States Navy Reserve and New York Naval Militia, pled guilty to defrauding the DOC by falsely claiming tens of thousands of dollars in military leave pay. MATHIEU pled guilty today before U.S. District Judge Naomi Reice Buchwald.
“As admitted, Leah Mathieu used forged documents to collect tens of thousands of dollars in military leave pay she had not earned,” said U.S. Attorney Jay Clayton. “That money came from New Yorkers’ pockets. New Yorkers expect those who serve them to follow the rules on all pay—regular wages, overtime, leave pay, etc.—and when there is cheating, New Yorkers want justice.”
“Falsifying military leave to obtain City pay is a crime and undermines the service members who rightfully earn those benefits,” said DOI Acting Commissioner Christopher Ryan. “As charged, this Correction Officer betrayed the trust granted in her by the City and the New York State Naval Militia. I thank the U.S. Attorney’s Office for the Southern District of New York for their continued partnership and commitment to protect City funds.”
According to the allegations in the Information:
MATHIEU is a correction officer employed by the DOC and a member of the United States Navy Reserve. MATHIEU repeatedly made false representations and provided forged documentation, including purported military orders, to the DOC falsely claiming that she was on state active duty with the New York Naval Militia and therefore entitled to leave from her employment with the DOC. Based on MATHIEU’s false representations and forged documentation, MATHIEU fraudulently obtained military leave pay from the DOC from December 2022 through March 2024, totaling approximately $80,297.90.
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MATHIEU, 34, of Freeport, New York, pled guilty to one count of wire fraud, which carries a maximum sentence of 20 years in prison.
The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge. MATHIEU will be sentenced by Judge Buchwald on August 27, 2026.
Mr. Clayton praised the outstanding investigative work of DOI, the Naval Criminal Investigative Service, the Defense Finance and Accounting Service, the New York State Department of Military and Naval Affairs, the U.S. Customs and Border Protection – New York Field Office, and the Special Agents and Task Force Officers 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. Attorney Rebecca T. Dell is in charge of the prosecution.
Trinitarios Gang Member Convicted of Witness Retaliation for Assault at Detention CenterRead the Press Release
United States Attorney for the Southern District of New York, Jay Clayton, announced the conviction at trial today of BRIAN HERNANDEZ, a/k/a “Malaki,” for his role in an assault carried out at the Metropolitan Detention Center (“MDC”) in Brooklyn, New York on December 3, 2023. The conviction comes after a four-day jury trial before U.S. District Judge Lewis J. Liman. HERNANDEZ is scheduled to be sentenced on July 28, 2026.
“With today’s verdict, the jury has found that the defendant, a member of the Trinitarios, committed this brutal attack in which another inmate was horribly stabbed and slashed across the face,” said U.S. Attorney Jay Clayton. “They also found that this heinous and senseless crime was committed for the purpose of retaliating against his victim because the defendant believed he was cooperating with the government. We commend the jury for its careful consideration of the evidence, and this verdict repeats loud and clear for all to hear that New Yorkers will not tolerate the harassment and intimidation of any witness, let alone the kind of violence a notorious and violent street gang committed here. Regardless of who you are or who you may be affiliated with, if you retaliate against a witness, the women and men of this Office and our partners in law enforcement will bring you to justice.”
As alleged in the Indictment and statements made in public filings and public court proceedings:
On December 3, 2023, HERNANDEZ and other members of the Trinitarios, while incarcerated at MDC, coordinated and carried out an attack on another inmate believed by the attackers to be providing information to the Government. During the attack, the victim was slashed and stabbed multiple times, including by HERNANDEZ who slashed the victim above the eye, leaving a deep gash and causing substantial bleeding.
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HERNANDEZ, 26, of New York, New York, was convicted of three total counts and faces up to 50 years in prison.
CountChargeSentenceCount OneConspiracy to Retaliate Against a Witness20 Years In PrisonCount ThreeWitness Retaliation (Causing Bodily Injury)20 Years In PrisonCount FourWitness Retaliation (Causing Harm to a Person)10 Years In PrisonThe maximum potential sentences are prescribed by Congress and provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Clayton praised the outstanding work of the Federal Bureau of Investigation and the United States Bureau of Prisons.
This case is being handled by the Office’s Violent Organizations and Crime Unit. Assistant U.S. Attorneys Frank J. Balsamello, Lisa Daniels, and William K. Stone are in charge of the prosecution. The team was assisted by paralegal specialist Ananya Sankar.
Pakistani National Pleads Guilty to Attempting to Commit ISIS-Inspired Attack at Jewish Center in New YorkRead the Press Release
The Justice Department announced today that Muhammad Shahzeb Khan, also known as “Shahzeb Jadoon,” pleaded guilty to attempting to commit acts of terrorism transcending national boundaries, for attempting to enter the United States and carry out a mass shooting with automatic weapons at a prominent Jewish center in Brooklyn, New York. Khan pleaded guilty today before U.S. District Judge Paul G. Gardephe and is scheduled to be sentenced on Aug. 12, 2026.
“Khan planned a mass shooting at a Jewish center in New York City, timed to coincide with the anniversary of the October 7th Hamas attacks, with the explicit goal of killing as many Jews as possible,” said Assistant Attorney General for National Security John A. Eisenberg. “Khan declared that New York City was the ‘perfect’ venue for his attack because of its large Jewish population and boasted that his plot could be the largest attack on U.S. soil since 9/11. The National Security Division will work tirelessly to ensure that terrorists like Khan face the full weight of American law.”
“Muhammad Khan planned to carry out a horrendous attack on a venerated Jewish center in New York City in support of ISIS,” said U.S. Attorney Jay Clayton for the Southern District of New York. “Thanks to the work of our law enforcement partners at the New York Joint Terrorism Task Force of the FBI, Khan’s plan was disrupted before he reached the United States. Today’s guilty plea makes unequivocally clear: terrorism and other hate-based violence have zero place in New York City. We will continue to ensure the safety of religious groups who have the fundamental right to gather peaceably and without fear of harm. That’s what New Yorkers want and that’s the American way.”
“Khan planned to illegally enter the United States and conduct an ISIS-inspired attack on the Jewish community around the one-year anniversary of the attacks in Israel by Hamas,” said Acting Assistant Director Coult Markovsky of the FBI’s Counterterrorism Division. “With this guilty plea, he will now face the consequences of planning a mass shooting in New York City that might have killed or injured many people. I want to thank the FBI teams and our partners for their work to prevent an attack and to bring this individual to justice.”
“Muhammad Khan targeted a prominent Jewish religious center in Brooklyn to honor the October 7th anniversary by attempting to conduct what he hoped would be the largest terrorist attack on US soil since 9/11,” said Assistant Director in Charge James C. Barnacle Jr. of the FBI New York Field Office. “Khan planned to inflict significant casualties and fear before he was intercepted 12 miles from our northern border. May today’s plea emphasize the FBI’s unwavering commitment to stand alongside our local law enforcement partners to defend our city from terrorists seeking to harm any of our citizens.”
“Muhammad Shahzeb Khan intended to come to New York City and carry out an ISIS-inspired act of terror against our city’s Jewish community,” said NYPD Commissioner Jessica S. Tisch. “The NYPD, in close coordination with our federal partners, was able to stop this dangerous plot before it could become a devastating attack. This case is yet another example of the sophisticated work that the NYPD does to protect our communities from harm and our ongoing commitment to stop hate-fueled violence.”
As alleged in the charging instruments and other public filings:
In or about November 2023, Khan, a Pakistani national residing in Canada, began posting on social media and communicating with others about his support for ISIS, including by distributing ISIS propaganda videos and literature. Khan subsequently began planning terrorist attacks in the United States in support of ISIS, including by communicating his plans with two individuals who, unbeknownst to Khan, were undercover officers (the UCs). Khan told the UCs that he and a U.S.-based associate (Associate-1) had been planning to carry out a terrorist attack in a particular U.S. city (City-1) using AR-style assault rifles to “target[] Israeli Jewish chabads . . . scattered all around [City-1].”[1] Khan repeatedly instructed the UCs to obtain AR-style assault rifles, ammunition, and other materials to carry out the attacks, and identified locations in City-1 where the attacks would take place. Khan also told the UCs that he had identified a human smuggler who would help him cross the border from Canada into the United States for the attack.
In or about August 2024, Khan changed his target to New York City, telling the UCs that the target location would now be a prominent Jewish religious center in Brooklyn, New York (Location-1). Khan conveyed that he hoped to carry out this attack on or around October 7, 2024 — which Khan recognized as the one-year anniversary of the brutal and deadly terrorist attacks in Israel carried out by the foreign terrorist organization Hamas on October 7, 2023. Khan told the UCs that “New york is perfect to target jews” because it has the “largest Jewish population in america,” and, as such, “even if we dont attack a[n] Event[,] we could rack up easily a lot of jews.” Khan told the UCs that “we are going to nyc to slaughter them,” and later sent a photograph to the UCs of the specific enclosed area inside of Location-1 where Khan planned to carry out his attack. In the days that followed, Khan continued to urge the UCs to acquire AR-style rifles, hunting knives to “slit their throats,” and other equipment for the attack, and reiterated his desire to carry out this attack in support of ISIS. During one such communication, Khan noted that “if we succeed with our plan this would be the largest Attack on US soil since 9/11.”
On or about Sept. 4, 2024, Khan attempted to reach the U.S.-Canada border using a human smuggler. Khan traveled from the vicinity of Toronto, Canada, toward the United States, before he was stopped and arrested in or around Ormstown, Canada, approximately 12 miles from the U.S.-Canada border.
Khan, 21, a Pakistani citizen who was residing in Canada, pleaded guilty to one count of attempting to commit acts of terrorism transcending national boundaries, which carries a maximum penalty of life in prison.
The potential maximum penalty 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 efforts of the New York Joint Terrorism Task Force of the FBI, which consists of investigators and analysts from the FBI, the New York City Police Department, and over 50 other federal, state, and local agencies, and thanked the FBI’s Los Angeles and Chicago Field Offices, the New York State Police, the U.S. Customs and Border Protection, and the Counterterrorism Section of the Department of Justice’s National Security Division for their assistance. The Office of International Affairs of the Justice Department’s Criminal Division worked with authorities in Canada to secure the arrest and June 2025 extradition of Khan. Mr. Clayton also thanked our law enforcement partners in Canada, including the Royal Canadian Mounted Police and Department of Justice Canada’s International Assistance Group, for their assistance.
This case is being handled by the Office’s National Security and International Narcotics Unit. Assistant U.S. Attorneys Kaylan E. Lasky and David J. Robles for the Southern District of New York are in charge of the prosecution, with assistance from Trial Attorney Kevin Nunnally of the National Security Division’s Counterterrorism Section.
[1] “Chabad” is a branch of Hasidic Judaism, as well as a movement that operates Jewish religious and educational institutions around the world.
Pakistani National Pleads Guilty to Attempting to Commit Isis-Inspired Attack at Jewish Center in New YorkRead the Press Release
United States Attorney for the Southern District of New York, Jay Clayton, Assistant Attorney General for National Security, John A. Eisenberg, Acting Assistant Director of the Counterterrorism Division of the Federal Bureau of Investigation (“FBI”), Coult Markovsky, Assistant Director in Charge of the New York Field Office of the FBI, James C. Barnacle, Jr., and Commissioner of the New York City Police Department (“NYPD”), Jessica S. Tisch, announced today that Muhammad Shahzeb Khan, a/k/a “Shahzeb Jadoon,” pled guilty to attempting to commit acts of terrorism transcending national boundaries, for attempting to enter the United States and carry out a mass shooting with automatic weapons at a prominent Jewish center in Brooklyn, New York. KHAN pled guilty today before U.S. District Judge Paul G. Gardephe and is scheduled to be sentenced on August 12, 2026.
“Muhammad Khan planned to carry out a horrendous attack on a venerated Jewish center in New York City in support of ISIS,” said U.S. Attorney Jay Clayton. “Thanks to the work of our law enforcement partners at the New York Joint Terrorism Task Force of the FBI, Khan’s plan was disrupted before he reached the United States. Today’s guilty plea makes unequivocally clear: terrorism and other hate-based violence have zero place in New York City. We will continue to ensure the safety of religious groups who have the fundamental right to gather peaceably and without fear of harm. That’s what New Yorkers want and that’s the American way.”
“Khan planned a mass shooting at a Jewish center in New York City, timed to coincide with the anniversary of the October 7th Hamas attacks, with the explicit goal of killing as many Jews as possible,” said Assistant Attorney General for National Security John A. Eisenberg. “Khan declared that New York City was the ‘perfect’ venue for his attack because of its large Jewish population and boasted that his plot could be the largest attack on U.S. soil since 9/11. The National Security Division will work tirelessly to ensure that terrorists like Khan face the full weight of American law.”
“Khan planned to illegally enter the United States and conduct an ISIS-inspired attack on the Jewish community around the one-year anniversary of the attacks in Israel by Hamas,” said Acting Assistant Director Coult Markovsky of the FBI’s Counterterrorism Division. “With this guilty plea, he will now face the consequences of planning a mass shooting in New York City that might have killed or injured many people. I want to thank the FBI teams and our partners for their work to prevent an attack and to bring this individual to justice.”
“Muhammad Khan targeted a prominent Jewish religious center in Brooklyn to honor the October 7th anniversary by attempting to conduct what he hoped would be the largest terrorist attack on U.S. soil since 9/11,” said FBI New York Assistant Director in Charge James C. Barnacle, Jr. “Khan planned to inflict significant casualties and fear before he was intercepted 12 miles from our northern border. May today’s plea emphasize the FBI’s unwavering commitment to stand alongside our local law enforcement partners to defend our city from terrorists seeking to harm any of our citizens.”
“Muhammad Shahzeb Khan intended to come to New York City and carry out an ISIS-inspired act of terror against our city’s Jewish community,” said NYPD Commissioner Jessica S. Tisch. “The NYPD, in close coordination with our federal partners, was able to stop this dangerous plot before it could become a devastating attack. This case is yet another example of the sophisticated work that the NYPD does to protect our communities from harm and our ongoing commitment to stop hate-fueled violence.”
As alleged in the charging instruments and other public filings:
In or about November 2023, KHAN, a Pakistani national residing in Canada, began posting on social media and communicating with others about his support for ISIS, including by distributing ISIS propaganda videos and literature. KHAN subsequently began planning terrorist attacks in the United States in support of ISIS, including by communicating his plans with two individuals who, unbeknownst to KHAN, were undercover officers (the “UCs”). KHAN told the UCs that he and a U.S.-based associate (“Associate-1”) had been planning to carry out a terrorist attack in a particular U.S. city (“City-1”) using AR-style assault rifles to “target[] Israeli Jewish chabads . . . scattered all around [City-1].”[1] KHAN repeatedly instructed the UCs to obtain AR-style assault rifles, ammunition, and other materials to carry out the attacks, and identified locations in City-1 where the attacks would take place. KHAN also told the UCs that he had identified a human smuggler who would help him cross the border from Canada into the United States for the attack.
In or about August 2024, KHAN changed his target to New York City, telling the UCs that the target location would now be a prominent Jewish religious center in Brooklyn, New York (“Location-1”). KHAN conveyed that he hoped to carry out this attack on or around October 7, 2024—which KHAN recognized as the one-year anniversary of the brutal and deadly terrorist attacks in Israel carried out by the foreign terrorist organization Hamas on October 7, 2023. KHAN told the UCs that “New york is perfect to target jews” because it has the “largest Jewish population in america,” and, as such, “even if we dont attack a[n] Event[,] we could rack up easily a lot of jews.” KHAN told the UCs that “we are going to nyc to slaughter them,” and later sent a photograph to the UCs of the specific enclosed area inside of Location-1 where KHAN planned to carry out his attack. In the days that followed, KHAN continued to urge the UCs to acquire AR-style rifles, hunting knives to “slit their throats,” and other equipment for the attack, and reiterated his desire to carry out this attack in support of ISIS. During one such communication, KHAN noted that “if we succeed with our plan this would be the largest Attack on US soil since 9/11.”
On or about September 4, 2024, KHAN attempted to reach the U.S.-Canada border using a human smuggler. KHAN traveled from the vicinity of Toronto, Canada, toward the United States, before he was stopped and arrested in or around Ormstown, Canada, approximately 12 miles from the U.S.-Canada border.
* * *
KHAN, 21, a Pakistani citizen who was residing in Canada, pled guilty to one count of attempting to commit acts of terrorism transcending national boundaries, which carries a maximum sentence of life in prison.
The potential maximum 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 efforts of the New York Joint Terrorism Task Force of the FBI, which consists of investigators and analysts from the FBI, the NYPD, and over 50 other federal, state, and local agencies, and thanked the FBI’s Los Angeles and Chicago Field Offices, the New York State Police, the U.S. Customs and Border Protection, and the Counterterrorism Section of the Department of Justice’s National Security Division for their assistance. The Office of International Affairs of the Justice Department’s Criminal Division worked with authorities in Canada to secure the arrest and June 2025 extradition of KHAN. Mr. Clayton also thanked our law enforcement partners in Canada, including the Royal Canadian Mounted Police and Department of Justice Canada’s International Assistance Group, for their assistance.
This case is being handled by the Office’s National Security and International Narcotics Unit. Assistant U.S. Attorneys Kaylan E. Lasky and David J. Robles are in charge of the prosecution, with assistance from Trial Attorney Kevin Nunnally of the National Security Division’s Counterterrorism Section.
[1] “Chabad” is a branch of Hasidic Judaism, as well as a movement that operates Jewish religious and educational institutions around the world.
Emir Balat and Ibrahim Kayumi Indicted for March 7, 2026, Isis-Inspired Attack Outside Gracie MansionRead the Press Release
United States Attorney for the Southern District of New York, Jay Clayton, Director of the Federal Bureau of Investigation (“FBI”), Kash Patel, Assistant Director in Charge of the New York Field Office of the FBI, James C. Barnacle, Jr., and Commissioner of the New York City Police Department (“NYPD”), Jessica S. Tisch, announced today an eight-count indictment charging EMIR BALAT and IBRAHIM KAYUMI in connection with their alleged terrorist attack in Manhattan on March 7, 2026. The case has been assigned to U.S. District Judge Vernon S. Broderick.
“As alleged, just weeks ago, Emir Balat and Ibrahim Kayumi carried out a terrorist attack on the streets of New York,” said U.S. Attorney Jay Clayton. “They sought to murder multiple innocent victims in the name of ISIS. The brave women and men of the NYPD responded immediately, and Balat and Kayumi were arrested on site. Since their attack, our partners at the FBI’s Joint Terrorism Task Force have uncovered evidence revealing the alleged meticulous planning by the defendants in their attack, including a notebook with detailed attack plans and a storage unit containing explosive residue and bomb-making materials. Today’s indictment is another step in holding the defendants accountable for their alleged conduct. We, the NYPD, the FBI, and our other law enforcement partners will continue to work every day to keep New Yorkers safe.”
“These individuals allegedly prepared explosive devices and attempted to detonate them on the streets of New York in the name of ISIS, but their plan failed thanks to the brave police officers who acted quickly,” said FBI Director Kash Patel. “The FBI and our law enforcement partners are determined to protect the homeland from terrorism or other acts of violence, and our partnerships are key to carrying out that mission. We also will make sure anyone who tries to harm our citizens in the name of ISIS, or any other terrorist organization, will face justice.”
“As alleged, Emir Balat and Ibrahim Kayumi traveled to New York City with IEDs to kill as many people as possible in an ISIS-inspired terrorist attack,” said FBI Assistant Director in Charge James C. Barnacle, Jr. “The alleged notes and instructions recovered from their vehicle demonstrate just how much cruelty they had planned. The FBI New York’s Joint Terrorism Task Force continues to work with the NYPD to defend our community against those who wish to cause mass casualties and tragedy.”
“Emir Balat and Ibrahim Kayumi planned this attack, transported explosive devices, and came to New York City intending to kill innocent people, as alleged in the indictment,” said NYPD Commissioner Jessica S. Tisch. “What they allegedly set in motion was an ISIS-inspired act of terrorism with the potential for mass casualties. It was stopped because of the quick-thinking, decisive actions of the men and women of the NYPD, who moved toward the threat and took these individuals into custody before more lives were put at risk. I thank our partners at the FBI and the U.S. Attorney’s Office for the Southern District for their work in securing this indictment. Anyone who seeks to bring terror to this city will be found, stopped, and held accountable.”
As alleged in the Complaint and in the Indictment:[1]
The Attack
On or about March 7, 2026, a protest called “Stop the Islamic Takeover of New York City, Stop New York City Public Muslim Prayer” and a counter-protest called “Run Nazis Out of New York City” were held outside of Gracie Mansion in New York, New York. Gracie Mansion is the official residence of the Mayor of New York City.
That morning, BALAT and KAYUMI drove from Pennsylvania to Manhattan and parked near Gracie Mansion. They then walked to the site of the protest and counter-protest, and at approximately 12:15 p.m., BALAT ignited and threw an improvised explosive device (“Device-1”) toward the area where the protesters were gathered. Immediately after throwing Device-1, BALAT ran to another location down the block, where KAYUMI passed BALAT a second improvised explosive device (“Device-2,” and together with Device-1, the “Devices”). BALAT ignited and dropped Device-2 on the ground near several NYPD officers and then ran from the scene, jumping over a barricade in the process. NYPD officers tackled and arrested BALAT shortly thereafter, and KAYUMI was arrested nearby moments later.
BALAT’s and KAYUMI’s Post-Arrest Statements About ISIS
Following his arrest, while en route to the NYPD precinct, BALAT stated to NYPD officers transporting him: “This isn’t a religion that just stands when people talk bad about . . . our prophet. We take action! We take action!”; and “If I don’t do it, someone else will come and do it.” Later, at the NYPD precinct, BALAT requested a piece of paper and, after being given a paper and pen, wrote the following: “All praise is due to Allah lord of all worlds! I pledge my allegiance to the Islamic State. Die in your rage yu [sic] kuffar! Emir B.” “Kuffar” is an Arabic term that refers to “non-believers” or “infidels,” and “Die in your rage” is a slogan used by ISIS. When law enforcement officers asked BALAT if he was familiar with the Boston Marathon bombing, and if that was what BALAT had hoped to accomplish, BALAT responded: “No, even bigger. It was only three deaths.”
After KAYUMI was arrested and waiting to be placed inside an NYPD vehicle, an individual from the surrounding crowd yelled to KAYUMI and asked, in substance and in part, why KAYUMI had done this. KAYUMI responded, “ISIS.” At the NYPD precinct, KAYUMI stated, in substance and part, that he had watched “radical content” online.
Evidence Recovered from the Defendants’ Vehicle
Following the Attack, law enforcement officers found the vehicle, registered to BALAT’s relative, that BALAT and KAYUMI had parked a few blocks south of Gracie Mansion. Inside the vehicle, officers recovered, among other things, a long coil of fuse, a notebook (the “Notebook”), and a dashboard camera containing a memory card on which approximately three days of video and audio recordings had been recorded (the “Dashcam Recordings”).
The Notebook contained pages of handwritten notes. One page listed “acetone peroxide synthesis” and “TATP explosive.” Other pages listed (i) ingredients and equipment for mixing explosives (for example, “hydrogen peroxide,” “sulfuric acid,” “glass container,” “syringe,” and “glass jar”), (ii) bomb components (for example, “aluminum can 6x” and “a box of bolts ect 2x”), (iii) steps and warnings for constructing a bomb (for example, “now add 25 ml of hydrogen perioxide into GC” and “DO NOT leave in open—the drier it becomes, the more sensitive to pressure, friction, and heat”) and (iv) steps for “detonat[ing] a bomb with burning fuse.” Another page described an apparent alternate plan for an attack by vehicle, including: (i) the “Ideal vehicle” for conducting an attack, which was to be “load bearing,” “large in size,” “reasonably fast,” and “heavy in weight”; (ii) a list of possible “target[s],” including “festivals,” “parades,” “protest,” and “celebrations”; and (iii) “steps to making napalm.”
The Dashcam Recordings captured video footage of the defendants’ travel from Pennsylvania to Manhattan on the morning of March 7, 2026, as well as audio recordings of their detailed discussion that morning of how they would conduct the attack, the likely outcome of the attack, whom they were targeting, and their use of social media websites to try to locate one of their intended targets (“Individual-1”). For example:
- KAYUMI stated, “All I know is I want to start terror bro,” and “I want to petrify these people.” BALAT responded, “Just for safety, as soon as you light it, just do it as soon as possible. Because I was testing the fuses, and some just go really fast sometimes, and some just are a bit slower.”
- KAYUMI stated, “First call, they’re going to be like this is us targeting [Individual-1].” BALAT responded that he was targeting “the government” and “civilians also.” KAYUMI replied, “Yeah, I know.”
- BALAT stated, “what I have here is called TATP,” that he had “calculated it,” and that “it’s gonna kill about 8 to 16 people,” or as many as 30 to 60 people if the area was crowded.
- BALAT instructed KAYUMI on how to throw the bomb and to “hide it” until BALAT gave “a sign.” BALAT further explained, “I’m going to say 3, 2, 1, and I’m going to take it out as fast and controlled as possible. We light it, as soon as you see it going underhand, go in his direction, trying to aim at him and at his feet. And then run to the car. Together.”
- BALAT discussed that they would be engaging in “martyrdom” and described having left behind a note.
The Storage Unit
In addition, FBI agents searched a storage unit in Langhorne, Pennsylvania, that BALAT had rented just days before the attack, and recovered residue that a subsequent forensic analysis confirmed contained triacetone triperoxide (“TATP”). The unit also contained bomb-making supplies, including a bottle labeled “12% hydrogen peroxide,” an ingredient of TATP; syringes; a digital scale; gloves; an open package of nuts and bolts; and glass jars similar in appearance to the ones used to build the Devices. In the center of the floor inside the storage unit was a piece of paper containing the handwritten words, “All praise is due to Allah!!! Die in your rage ya kuffar!”
Forensic Analysis
Finally, a forensic analysis has revealed that Device-1, which BALAT had thrown into the crowd of protesters, consisted of a glass jar wrapped in duct tape and containing nuts, bolts, an energy drink can filled with TATP, and a fuse. TATP is a highly sensitive primary explosive that is colloquially known as the “Mother of Satan”; is extremely sensitive to impact, friction, and heat; and has been used in multiple terrorist attacks over the last decade. Forensic analysis also revealed that Device-2, which KAYUMI had handed to BALAT before BALAT dropped it on the ground near police officers, contained TATP.
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BALAT, 18, of Langhorne, Pennsylvania, and KAYUMI, 19, of Newtown, Pennsylvania, are each charged with: (i) conspiracy to provide material support and resources to a designated foreign terrorist organization, which carries a maximum sentence of 20 years in prison; (ii) provision and attempted provision of material support and resources to a designated foreign terrorist organization, which carries a maximum sentence of 20 years in prison; (iii) conspiracy to use a weapon of mass destruction, which carries a maximum sentence of life in prison; (iv) attempted use of a weapon of mass destruction, which carries a maximum sentence of life in prison; (v) carrying of explosive materials during the commission of a federal felony, which carries a mandatory sentence of 10 years in prison to run consecutively to any other sentence imposed for the underlying federal felony; (vi) transportation of explosive materials, which carries a maximum sentence of 10 years in prison; (vii) interstate transportation and receipt of explosives, which carries a maximum sentence of 10 years in prison; and (viii) unlawful possession of destructive devices, which carries a maximum sentence of 10 years in prison.
The minimum and maximum potential sentences 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 efforts of the New York Joint Terrorism Task Force of the FBI, which consists of investigators and analysts from the FBI, the NYPD, and over 50 other federal, state, and local agencies. Mr. Clayton also thanked the Counterterrorism Section of the Department of Justice’s National Security Division, U.S. Customs and Border Protection, the New York State Police, Homeland Security Investigations, the FBI Newark Field Office, the FBI Philadelphia Field Office, and the Bureau of Alcohol, Tobacco, Firearms and Explosives for their assistance.
This case is being handled by the Office’s National Security and International Narcotics Unit. Assistant U.S. Attorneys Jonathan L. Bodansky and Jane Y. Chong are in charge of the prosecution, with assistance from Trial Attorney James Donnelly of the Counterterrorism Section and paralegal specialist Juan Muñoz.
[1] As the introductory phrase signifies, the entirety of the charging instruments to date constitutes only allegations, and every fact described herein should be treated as an allegation.
Former New York City Public School Teacher Sentenced to 150 Months in Prison for Receipt and Distribution of Child PornographyRead the Press Release
United States Attorney for the Southern District of New York, Jay Clayton, announced today that ANTHONY MICHAEL SOUZA was sentenced to 150 months in prison for receipt and distribution of child pornography. SOUZA’s sentence was imposed by U.S. District Judge Katherine Polk Failla, who also presided over the guilty plea.
“New York City parents trusted Anthony Michael Souza to keep their children safe,” said U.S. Attorney Jay Clayton. “Souza betrayed that trust by sharing ghastly child pornography and preying on minors, including his own students. Today’s sentence affirms yet again this Office’s unwavering commitment to protect our children and to find and prosecute individuals who traffic in child pornography.”
According to the Information, public filings, the plea agreement, and statements made in court proceedings:
For three years leading up to his 2024 arrest, SOUZA served as an arts and theater teacher in multiple New York City public schools. His students included children between kindergarten and high school. During this time, SOUZA sent and received approximately 250 videos and approximately 1,050 images containing child pornography. Some of those videos and images showed abuse and rape of children, infants, and toddlers. SOUZA also took sexualized photographs and videos of young (clothed) children inside his classrooms and sent them to individuals with whom SOUZA shared child pornography.
In addition to the child-pornography conduct, SOUZA maintained a sexual relationship with a minor (“Minor-1”) for more than a year. SOUZA and Minor-1 had sex on multiple occasions, and SOUZA filmed himself having sex with Minor-1. SOUZA also invited other men who joined SOUZA for group sex with Minor-1. Additionally, SOUZA and another individual discussed SOUZA’s unsuccessful attempt to “groom” one of SOUZA’s fifth-grade students (“Minor-2”). The attempt was foiled when Minor-2 hung up the phone and blocked SOUZA.
If you believe you have information concerning exploitation of children, please contact the Federal Bureau of Investigation (“FBI”) at 1-212-384-1000 or https://tips.fbi.gov/.
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In addition to the prison term, SOUZA, 38, of Manhattan, was sentenced to five years of supervised release.
Mr. Clayton praised the outstanding investigative work of the FBI.
This case is being handled by the Office’s General Crimes Unit. Assistant U.S. Attorney Getzel Berger is in charge of the prosecution.
Albany Man Charged with Coercion and Enticement of A MinorRead the Press Release
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 criminal charges against ANTHONY PARENTE for communicating online and over the phone with an individual he believed to be a 14-year-old girl and attempting to meet the individual to engage in sexual activities. PARENTE was taken into federal custody on April 2, 2026, and presented before Chief U.S. Magistrate Judge Judith C. McCarthy in White Plains federal court on April 3, 2026.
“There is little we take more seriously than protecting our children,” said U.S. Attorney Jay Clayton. “As alleged, Anthony Parente targeted someone he believed to be a teenaged girl for explicit enticement to participate in sexual activity and then traveled into the Southern District of New York with the intention of engaging in sex with a minor. New Yorkers abhor this alleged conduct; it has no place here. Our prosecutors and our FBI partners are committed to identifying and holding accountable those who attempt to prey on our children.”
“Anthony Parente allegedly engaged in sexually explicit conversations with a purported minor girl and planned to sexually abuse her before authorities arrested him,” said FBI Assistant Director in Charge James C. Barnacle, Jr. “The FBI continues to partner with state and local law enforcement agencies to hold accountable any sexual predator who targets minors online for perverted gratification.”
As alleged in the Complaint:[1]
PARENTE was identified on March 27, 2026, as part of a multi-agency operation. PARENTE communicated with an undercover law enforcement officer (“Officer-1”) that PARENTE believed to be a 14-year-old girl using online chat applications, text messaging, and phone calls. During these exchanges, PARENTE discussed his sexual preferences with Officer-1 and provided instructions to Officer-1 as to how she might gratify them, in addition to asking for nude photographs. During their communications, PARENTE sent Officer-1 a number of photos of his face, including this one:
After a period of approximately six days, Officer-1 and PARENTE arranged a meet-up for sex. On April 2, 2026, PARENTE drove approximately two hours to the agreed-upon location, where he was taken into custody by New York State Police and found to have bondage equipment on his person. In a post-arrest statement made after being advised of his rights, PARENTE admitted that he had communicated with a 14-year-old girl and intended to engage in oral and vaginal intercourse with her.
Please read the allegations in this complaint and, if you think you see something similar, say something: call 1-800-CALL-FBI (1-800-225-5324) or use the online tips page: https://tips.fbi.gov.
* * *
PARENTE, 30, of Loudonville, New York, is charged with one count of coercion and enticement of a minor. The statutory minimum for this charge is 10 years in prison, and the maximum is life in prison.
The statutory minimum and 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 the judge.
Mr. Clayton praised the outstanding investigative work of the FBI New York Office Hudson Valley Safe Streets Task Force, New York State Police Troop F – Computer Crimes Unit and Community Stabilization Unit, FBI Albany Field Office, New York State Police Troop G, and U.S. Attorney’s Office for the Northern District of New York.
The prosecution is being handled by the Office’s White Plains Division. Assistant U.S. Attorney Samantha Briggs is in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Crips Gang Member Pleads Guilty to March 2021 Bronx MurderRead the Press Release
United States Attorney for the Southern District of New York, Jay Clayton, announced that ALIEU JARJOU, a/k/a “Scally,” a/k/a “Lu Scally,” pled guilty today before U.S. District Judge Edgardo Ramos to his criminal activities as a member of the “Rollin 20s” set of the Crips, including the March 2021 murder of Jadon Robinson.
“On March 9, 2021, Alieu Jarjou shot and killed 30-year-old Jadon Robinson on a busy Bronx street in the middle of the day,” said U.S. Attorney Jay Clayton. “Jarjou committed this brutal murder to enhance his status within the Rollin 20s Crips, a violent street gang that has terrorized our communities through senseless violence and drug trafficking. There is stark reality that we need to face: for gangs like the Crips, murder is a part of business, and for gang members, murder is a status symbol. Those who tolerate, or worse, celebrate gang culture could not be more out of touch. New York families want gangs dismantled and their murderous members off the streets. The women and men of our Office are committed to relentlessly pursuing all gangs that threaten the safety of New Yorkers.”
As alleged in the Indictment and statements made in public filings and public court proceedings:
From at least January 2021 through at least January 2022, JARJOU was a member of the Rollin 20s Crips, which is based in the Bronx, New York. In order to fund the gang, protect its territory, and promote its standing, members of the Rollin 20s Crips engaged in, among other things, murders, assaults, threats of violence, and narcotics trafficking. In connection with his membership in the Rollin 20s Crips, JARJOU, together with other members of the gang, sold drugs, including oxycodone and marijuana.
On March 9, 2021, JARJOU shot and killed Jadon Robinson in the vicinity of 1268 Morrison Avenue in the Bronx. After learning that Robinson was suspected of assaulting a member of the Rollin 20s Crips, JARJOU murdered Robinson to retaliate for the suspected assault. Robinson was 30 years old.
* * *
JARJOU, 31, of the Bronx, New York, pled guilty to one count of racketeering conspiracy, during which he committed murder, which carries a maximum sentence of life in prison; and one count of using and carrying a firearm during and in relation to, and possessing a firearm in furtherance of, a crime of violence, which firearm was brandished and discharged, which carries a maximum sentence of life in prison and a mandatory minimum sentence of 10 years in prison. JARJOU is scheduled to be sentenced by Judge Ramos on August 18, 2026.
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 NYPD.
The case is being handled by the Office’s Violent Organizations and Crime Unit. Assistant U.S. Attorneys Christy Slavik and Jim Ligtenberg are in charge of the prosecution.
Man Pleads Guilty to Possessing A Machine Gun Used in November Bronx ShootingRead the Press Release
United States Attorney for the Southern District of New York, Jay Clayton, announced that DAVID MALDONADO pled guilty today before U.S. District Judge Jed S. Rakoff to possessing a machine gun in connection with a November 14, 2025, daytime shooting during which MALDONADO fired 12 rounds from a machinegun on a public street in the Bronx, New York.
“The illegal possession of a machine gun is unacceptable and will not be tolerated,” said U.S. Attorney Jay Clayton. “The families of New York City deserve to live free of fear from the type of gun violence these weapons can unleash. The women and men of this Office will never tire in their efforts to root out and hold accountable those who would bring this type of violence to our communities.”
As alleged in the Indictment, and in public statements made in court proceedings:[1]
On or about November 14, 2025, at around 4:00 p.m., MALDONADO, who has been previously convicted of multiple felony offenses, discharged a machine gun in the vicinity of East 170th Street and Third Avenue in the Bronx, including two shots that struck a nearby vehicle.
Detectives of the New York City Police Department (“NYPD”), who were in the vicinity of the gunshots, spotted and promptly apprehended MALDONADO, who was in possession of an un-serialized Polymer 80, model PF940C, 9x19mm caliber firearm, also known as a “ghost gun.” During the shooting, MALDONADO used a semi-automatic handgun with an illegal machine gun conversion device installed, which converted his firearm into a fully automatic machine gun capable of shooting more than one shot with a single pull of the trigger. Photographs of the firearm and magazine seized from MALDONADO and the conversion device that was installed on the pistol slide are below:
* * *
MALDONADO, 53, of New York, New York, pled guilty to one count of possession of a machine gun, which carries a maximum sentence of 10 years in prison.
Mr. Clayton praised the outstanding investigative work of the NYPD and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
This case is being handled by the Office’s Violent Organizations & Crime Unit. Assistant U.S. Attorney Brandon D. Harper is in charge of the prosecution.
[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.
White Plains Man Arrested and Charged for Manufacturing, Stockpiling, and Detonating Explosive DevicesRead the Press Release
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 federal criminal charges against RAYMOND ELDERS for manufacturing and possessing suspected improvised explosive devices in his apartment in White Plains and detonating them on a residential street. ELDERS was arrested by the FBI and presented yesterday before U.S. Magistrate Judge Judith C. McCarthy in White Plains federal court and detained.
“By allegedly manufacturing dozens of suspected explosive devices and storing them in his apartment, Raymond Elders put everyone in his community at risk,” said U.S. Attorney Jay Clayton. “But he didn’t stop there. As alleged in the complaint, and over a period of months, he lit these devices and detonated them in his neighborhood in White Plains, causing unexplained explosions that his neighbors repeatedly reported to the police. It should go without saying that anyone who tosses illegal explosives onto New York residential streets should expect to face serious consequences, including federal criminal charges brought by our Office.”
“Raymond Elders allegedly constructed dozens of IEDs and detonated at least two in his neighborhood,” said FBI Assistant Director in Charge James C. Barnacle, Jr. “Elders’s alleged actions repeatedly disregarded the public’s safety by subjecting innocent bystanders to potentially devastating harm. We thank the White Plains Police Department and the Westchester County Bomb Squad for their prompt response and for protecting the residents of Westchester County. The FBI continues to work tirelessly with our law enforcement partners to protect our communities from violence.”
As alleged in the Complaint:[1]
ELDERS, a convicted felon, was captured on surveillance video on at least two occasions in March 2026 igniting suspected improvised explosive devices and tossing them onto Odell Avenue in White Plains. Below are excerpts from surveillance footage obtained from residential premises on Odell Avenue during the afternoon of March 18, 2026:
Below are additional excerpts from surveillance footage depicting Odell Avenue during the early morning hours of March 30, 2026:
In response to multiple 911 calls on March 30, White Plains Police Officers responding to the scene found an apparent pipe bomb on the steps of ELDERS’s apartment building. A warrant-authorized search of ELDERS’s apartment returned at least approximately 25 suspected explosive devices, in addition to materials and supplies ELDERS allegedly used to assemble explosive devices. Law enforcement evacuated all residents of the apartment building while FBI explosives specialists secured the scene. Law enforcement’s analysis of the suspected improvised explosive devices remains ongoing.
An associate of ELDERS informed law enforcement that he has seen ELDERS assemble the suspected explosive devices while sitting on the living room couch in his apartment, which is on the first floor of a multi-family residence.
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ELDERS, 65, is charged with one count of use of a weapon of mass destruction, which carries a maximum sentence of life in prison; one count of possession of destructive devices after a felony conviction, which carries a maximum sentence of 15 years in prison; as well as one count of receipt and possession of explosives after a felony conviction, one count of unlawful possession of destructive devices, and one count of unlawful manufacture of destructive devices, each of which carries a maximum sentence of 10 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 investigative work of the FBI New York Office Westchester Safe Streets Task Force and Joint Terrorism Task Force, the White Plains Police Department, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
The prosecution is being handled by the Office’s White Plains Division. Assistant U.S. Attorneys Samantha Briggs and John Sarlitto are in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Restaurateur Charged in Multimillion-Dollar Insurance Fraud Scheme and Money Laundering ConspiracyRead the Press Release
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 arrest of ZHAN PETROSYANTS, a/k/a “Johnny,” in connection with the unsealing of an Indictment charging PETROSYANTS with operating an extensive no-fault insurance fraud scheme that submitted tens of millions in fraudulent medical claims and laundering the proceeds. PETROSYANTS was taken into federal custody last night and will be presented today before U.S. Magistrate Ona T. Wang in Manhattan Federal Court. The case has been assigned to U.S. District Judge Victor Marrero.
“As alleged in the indictment, Zhan Petrosyants orchestrated a complex scheme to cheat insurance providers out of millions of dollars,” said U.S. Attorney Jay Clayton. “No-fault insurance fraud schemes raise costs for everyone and reduce benefits to consumers, an unnecessary burden we all unfortunately share. Today’s arrest demonstrates this Office’s continuing commitment to rooting out this pernicious type of fraud that imposes costs on all New Yorkers.”
“Zhan Petrosyants allegedly stole money by submitting fabricated medical claims to receive millions of dollars in unauthorized payments,” said FBI Assistant Director in Charge James C. Barnacle, Jr. “The FBI remains dedicated to dismantling fraudulent schemes that exploit benefits at the expense of New Yorkers.”
According to allegations in the Indictment and other publicly filed information in this case:[1]
Under New York State Law, every vehicle registered in New York State is required to have no-fault automobile insurance, which enables the driver and passengers of a registered and insured vehicle to obtain benefits of up to $50,000 per person for injuries sustained in an automobile accident, regardless of fault (the “No-Fault Law”). The No-Fault Law requires prompt payment for medical treatment, thereby obviating the need for claimants to file personal injury lawsuits in order to be reimbursed. Under the No-Fault Law, patients can assign their right to reimbursement from an insurance company to others, including medical clinics that provide treatment for their injuries. New York State law also requires that all medical clinics in the State be incorporated, owned, operated, and/or controlled by a licensed medical practitioner in order to be eligible for reimbursement under the No-Fault Law. Insurance companies will not honor claims for medical treatments from a medical clinic that is not actually owned, operated, and controlled by a licensed medical practitioner.
PETROSYANTS and his co-conspirators defrauded automobile insurance programs designed to provide health care benefits for motor vehicle accident victims out of millions of dollars. PETROSYANTS and his co-conspirators agreed to and did submit fraudulent claims to the insurance programs for services that were never provided, services that were unnecessary and excessive, and services that were billed under the names of medical corporations that were not actually owned, operated, and controlled by licensed medical professionals, as required by New York State laws and regulations. If insurance companies had known that the nominee medical corporations were actually owned and controlled by non-medical professionals, the insurance companies would have denied payment for claims submitted by the nominee medical corporations.
To carry out the scheme, PETROSYANTS and his co-conspirators recruited purported physicians, psychologists, and other clinicians under whose names the fraudulent no-fault insurance claims were submitted, and prepared fraudulent no-fault insurance claims to obtain benefits from the automobile insurance companies. When preparing these fraudulent bills, the conspirators frequently used the license information and signatures of licensed psychologists and medical professionals on fraudulent billing records submitted to insurance companies.
In furtherance of the scheme, PETROSYANTS and his co-conspirators obtained advance payments based on the fraudulent claim amounts through financing agreements with funding companies. In particular, PETROSYANTS arranged for his-conspirators to use the services of a funding company (“Funding Company-1”) affiliated with a law firm, which provided quick access to criminal proceeds through advances paid by the funding company and provided a veneer of legitimacy to the scheme. In exchange for securing financing from Funding Company-1, PETROSYANTS received a referral fee from Funding Company-1 as well as kickback payments from his co-conspirators representing a portion of the advances paid by Funding Company-1 to the scheme participants. Some of the kickback payments were paid to PETROSYANTS using blank, pre-signed checks drawn on accounts nominally controlled by certain of the No-Fault Providers, which were filled out by co-conspirators in PETROSYANTS’s presence.
Further, PETROSYANTS caused Funding Company-1 to pay millions in advances on no-fault medical claims to two shell corporations. Neither shell company was a provider of medical services and the bank accounts in their names that received Funding Company-1’s advances were not controlled by a medical professional. Substantially all of the money that these shell companies received from Funding Company-1 was then transferred to a bank account nominally held by a jewelry business based in the Diamond District of midtown Manhattan.
As a result of their fraudulent scheme, PETROSYANTS and his co-conspirators caused insurance providers to be billed tens of millions of dollars in fraudulent no-fault medical claims.
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ZHAN PETROSYANTS, 44, of Edgewater, New Jersey, is charged with one count of conspiracy to commit healthcare fraud, which carries a maximum sentence of 20 years in prison; one count of conspiracy to commit wire fraud, which carries a maximum sentence of 20 years in prison; one count of aggravated identity theft, which carries a mandatory two-year consecutive sentence; and one count of conspiracy to commit money laundering, which carries a maximum sentence of 20 years in prison.
The maximum potential sentences in this case are prescribed by Congress and provided here for informational purposes only, as any sentencing of the defendant would be determined by a judge.
Mr. Clayton praised the outstanding work of the FBI.
The case is being handled by the Office’s Illicit Finance and Money Laundering Unit. Assistant U.S. Attorneys Cecilia Vogel, Christopher Brumwell, and Eli J. Mark are in charge of the prosecution.
[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.
Former Employee of the Croatian Mission to the U.N. Charged with Embezzling $750,000 Through Fraudulent Invoicing SchemeRead the Press Release
United States Attorney for the Southern District of New York, Jay Clayton, and Acting Special Agent in Charge of the New York Field Office of Homeland Security Investigations (“HSI”), Michael Alfonso, announced today the unsealing of a Complaint charging RENATA SUPINA-SALTUS in connection with a long-running wire fraud scheme in which she fabricated invoices to embezzle approximately $750,000 from her then-employer, the Permanent Mission of the Republic of Croatia to the United Nations (the “PMRC”). SUPINA-SALTUS was arrested and presented today in the District of Connecticut before U.S. Magistrate Judge Maria E. Garcia.
“When someone is given access to an organization’s finances, they are being trusted—plain and simple,” said U.S. Attorney Jay Clayton. “Renata Supina-Saltus allegedly abused that trust and turned the Croation Mission into a personal piggy bank, stealing hundreds of thousands of dollars.”
“Renata Supina-Saltus held a position of trust as member of the Permanent Mission of the Republic of Croatia to the United Nations,” said HSI Acting Special Agent in Charge Michael Alfonso. “She’s alleged today to have absolutely exploited that trust, enriching herself to the tune of $750,000. Financial crime and corruption undermine institutions and HSI will leverage our international footprint to aggressively pursue those who abuse their positions to benefit themselves.”
According to the allegations contained in the Complaint:[1]
From at least in or about July 2017 through in or about November 2023, SUPINA-SALTUS worked at the PMRC in a financial administrative capacity. By virtue of her position, SUPINA-SALTUS had unique access to the PMRC’s vendor payment systems and was authorized to submit and process invoices on the PMRC’s behalf.
For approximately six years SUPINA-SALTUS used her access and position to carry out a fraudulent invoicing scheme to embezzle funds from the PMRC’s accounts into her own personal bank accounts. SUPINA-SALTUS carried out this scheme by at least two different means. SUPINA-SALTUS sometimes made double payments for certain invoices, which typically involved an authorized payment to the vendor for the PMRC and then a second payment of the same amount to one of SUPINA-SALTUS’s own bank accounts. At other times, SUPINA-SALTUS created fake invoices—sometimes from fictitious vendors—and billed them to the PMRC, but then directed the fraudulent payments to bank accounts under her control.
In total, SUPINA-SALTUS embezzled at least approximately $750,000 over the course of her fraudulent invoicing scheme and used the funds for her personal benefit.
* * *
SUPINA-SALTUS, 59, of West Haven, Connecticut, is charged with one count of wire fraud, which carries a maximum sentence of 20 years in prison; and two counts of money laundering, each of which carries a maximum sentence of 10 years in prison.
The maximum potential sentences in this case are prescribed by Congress and provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.
Mr. Clayton thanked the State Attorney's Office of the Republic of Croatia, Office for the Suppression of Corruption and Organised Crime. Mr. Clayton also praised the outstanding investigative work of HSI, its New England Field Office and Attache in Vienna, as well as the New York City Police Department.
The case is being handled by the Office’s General Crimes Unit. Assistant U.S. Attorney Nicholas Pavlis is in charge of the prosecution. The Department of Justice Criminal Division’s Office of Overseas Prosecutorial Development, Assistance and Training Regional Resident Legal Advisor at U.S. Embassy Zagreb, Croatia provided assistance.
[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.
CEO of Credit Monitoring Company Pleads Guilty in Connection with Nationwide Online Marketing SchemeRead the Press Release
United States Attorney for the Southern District of New York, Jay Clayton, announced the guilty plea of MICHAEL BROWN for his operation of a nationwide online marketing scheme to make money by posting fake advertisements for rental properties across the United States on a classified advertisements website. The purpose of the scheme was to fraudulently induce potential renters to enter their credit card information on credit monitoring websites owned by BROWN and pay for a credit report under false pretenses, including by automatically enrolling the customers in a paid monthly membership for credit monitoring services. BROWN pled guilty on Monday, March 30, to one count of conspiracy to commit wire fraud and one count of wire fraud before U.S. District Judge Katherine Polk Failla.
“Many Americans rely on online websites to safely and securely search for housing,” said U.S. Attorney Jay Clayton. “For years, Michael Brown perpetrated an online scam by tricking ordinary Americans looking for housing, including here in New York, into paying for services they did not need and did not want. The defendant’s company made millions from over 160,000 victims. Mass online fraudsters try to hide by hitting each victim for a small amount. As demonstrated in this case, that will not work.”
According to the charging documents and statements made in public filings and public court proceedings:
BROWN owned and operated Credit Bureau Center, LLC, formerly known as MyScore LLC (“MyScore”), a company that provided credit reports and credit monitoring services via the websites eFreeScore.com, FreeCreditNation.com, and CreditUpdates.com, among other sites (collectively, the “MyScore Websites”). In order to drive potential customers to the MyScore Websites, BROWN employed the use of affiliate marketers. In affiliate marketing, a seller of goods or services such as MyScore uses other firms or individuals known as “affiliates” to market the seller’s goods or services by attracting customers to the seller’s websites.
From at least in or about 2014 through at least on or about January 10, 2017, BROWN and his affiliate marketers engaged in a nationwide online marketing scheme to post fake advertisements for rental properties across the United States on a classified advertisements website (the “Advertising Website”). The purpose of the scheme was to fraudulently induce prospective renters to enter their credit card information on the MyScore Websites and pay for a credit report under false pretenses in order to automatically enroll them in paying for a monthly membership for credit monitoring services.
The advertisements used in the scheme typically contained photos of the supposed rental properties and showcased properties in desirable locations for below-market prices in order to attract interest. The advertisements were posted for rental properties in metropolitan areas across the United States, including, among other locations, New York City, Miami, Atlanta, Houston, Los Angeles, and San Diego. In actuality, the rental properties did not exist as advertised or were not actually available for rent through the posts on the Advertising Website. The advertisements also did not disclose the specific address of the rental properties but instead contained a contact email address inviting prospective renters to contact the property owner if they were interested in the rental property.
When prospective renters inquired about the rental properties posted on the Advertising Website by responding to the advertisements, they received a form email purporting to be from the property owner requiring the prospective renter to obtain a copy of their credit report, and referring the prospective renter to one of the MyScore Websites to obtain a credit report, before scheduling a tour of the property. The form email typically described purported features of the advertised property and falsely informed the prospective renter, in substance and in part, that he or she was the second person to respond to the advertisement, that the first responder no longer needed the property, and that the property owner was ready to lease the property to the prospective renter with flexible terms and had just completed all new renovations.
Once a prospective renter clicked on the hyperlink in the form email from the purported property owner to obtain a copy of their credit report, the prospective renter was directed to the “landing page” of one of the MyScore Websites. The landing page of the MyScore Websites typically featured a large banner that stated, in substance and in part, “Get Your Free Credit Score and Report” with significantly smaller text referencing an unspecified “7-day trial” and a “Monthly membership of $29.94 automatically charged after trial.” In order to get the credit report, prospective renters were required to enter identifying information and credit card information through a series of webpages. Once the prospective renter entered credit card information, the prospective renter was charged $1.00 and was automatically enrolled in a monthly membership for credit monitoring services with recurring charges of typically $29.94 per month until the membership was canceled.
When prospective renters responded to the purported property owner asking to schedule a tour of the advertised property now that they had a copy of their credit report, there was typically no response, as the property was not actually available for rent as advertised and the scheme had succeeded in fraudulently generating a monthly membership subscription for MyScore. Many prospective renters who obtained a credit report from the MyScore Websites as a result of the scheme did not realize that they had been automatically enrolled in MyScore’s membership until they discovered the monthly charges on their credit card statements. Some prospective renters also had difficulties canceling the membership when they contacted MyScore’s customer service department.
BROWN continued to execute the scheme through at least on or about January 10, 2017, despite numerous complaints during the course of the scheme from customers and consumer organizations about the fraudulent nature of the rental advertisements on the Advertising Website, the automatic enrollment of customers in MyScore’s monthly membership with recurring charges without their knowledge, and the difficulties in cancelling the monthly membership.
In total, the scheme caused over approximately 2.7 million unique visits to the MyScore Websites and generated at least $6.8 million in revenue from at least 169,000 customers who were automatically enrolled in MyScore’s monthly membership for credit monitoring services through the scheme.
If you believe you may be a victim of the conduct described in this press release, please call 1-800-CALL-FBI (1-800-225-5324) or use the online tips page: https://tips.fbi.gov.
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BROWN, 41, of Indian Trail, North Carolina, pled guilty to one count of conspiracy to commit wire fraud and one count of wire fraud, each of which carries a maximum sentence of 20 years in prison, for a total maximum sentence of 40 years in prison.
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge. BROWN is scheduled to be sentenced by Judge Failla on September 1, 2026.
Mr. Clayton praised the outstanding investigative work of the Federal Bureau of Investigation. Mr. Clayton also thanked the Federal Trade Commission for their assistance with the case.
The prosecution of this case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Connie L. Dang, Matthew Weinberg, and Shaun E. Werbelow are in charge of the prosecution.
Registered Sex Offender Charged with Attempted Sexual Exploitation of A MinorRead the Press Release
United States Attorney for the Southern District of New York, Jay Clayton, and Assistant Director in Charge of the Federal Bureau of Investigation (“FBI”), James C. Barnacle, Jr., announced today the arrest of LOUIS K. WEST III. WEST, a registered sex offender, is charged with communicating online with an individual he believed to be a 14-year-old girl and attempting to meet the individual to engage in sexual activities and record the encounter. WEST was taken into federal custody on Friday, March 27, 2026, presented before U.S. Magistrate Judge Judith C. McCarthy in White Plains federal court, and detained.
“There are few crimes as horrific as the sexual exploitation of our children, particularly in cases like this one where the defendant has a history of sexual violence,” said U.S. Attorney Jay Clayton. “New York families have zero tolerance for this conduct, and we are acting on their behalf. Please read the allegations in this complaint and, if you think you see something similar, say something: call 1-800-CALL-FBI (1-800-225-5324) or use the online tips page: https://tips.fbi.gov.”
“Louis West, a registered sex offender, allegedly attempted to arrange a sexual encounter with a minor victim before authorities intercepted him,” said FBI Assistant Director in Charge James C. Barnacle, Jr. “West allegedly sought to sexually abuse a young teenager for his own twisted gratification. The FBI continues to partner with state and local law enforcement to target sexual predators seeking to harm vulnerable children.”
As alleged in the Complaint:[1]
On March 26, 2026, WEST was identified as part of a multi-agency enticement operation. WEST attempted to meet with an underage minor female for the purpose of engaging in sex acts. WEST negotiated the details of a sexual encounter with an undercover law enforcement officer (“Officer-1”). Officer-1 and WEST agreed on a place to meet for WEST to engage in sex with the minor.
Later that evening, WEST arrived at the agreed upon meeting location and spoke with another undercover law enforcement officer (“Officer-2”). When asked if he had brought condoms, WEST confirmed that he had and flashed a condom from inside his pocket. WEST confirmed that he could “take his time” with the minor. Officer-2 moved to enter the location where WEST believed the 14-year-old to be located, and WEST followed. At that point, WEST was arrested by FBI agents. Upon searching WEST, agents found covert recording equipment, including a hidden camera disguised as an alarm clock and a pair of apparent video recording eyeglasses.
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WEST, 50, of Poughkeepsie, New York, is charged with one count of attempted sexual exploitation of a minor, one count of coercion and enticement of a minor, and one count of committing a felony offense involving a minor as a registered sex offender. The statutory minimum for these charges is 35 years in prison, and the maximum is life in prison.
The statutory minimum and 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 the judge.
Mr. Clayton praised the efforts of the FBI’s New York Hudson Valley Safe Streets Task Force, New York State Police - Troop F, Internet Crimes Against Children Proactive Investigations Unit - Albany, Special Operation Response Team, Orange County Sheriff's Office, Town of Newburgh Police Department, Hudson Valley Crime Analysis Center, the New York State Intelligence Center, Dutchess County Sheriff’s Office, and the Town of Poughkeepsie Police Department.
The prosecution is being handled by the Office’s White Plains Division. Assistant U.S. Attorney Isabelle Lelogeais is in charge of the prosecution.
[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.
Maryland Man Charged with Defrauding Crypto Exchange of over $50 Million in HacksRead the Press Release
United States Attorney for the Southern District of New York, Jay Clayton, and Kevin Murphy, Acting Special Agent in Charge of Homeland Security Investigations (“HSI”) San Diego, announced the unsealing of an Indictment charging JONATHAN SPALLETTA, a/k/a “Cthulhon,” a/k/a “Jspalletta,” with computer fraud and money laundering in connection with his hacks of the decentralized cryptocurrency exchange Uranium Finance (“Uranium”). SPALLETTA surrendered today and will be presented this afternoon before U.S. Magistrate Judge Ona T. Wang. The case is assigned to U.S. District Judge Jed S. Rakoff.
“As alleged, Jonathan Spalletta repeatedly hacked smart contracts to steal millions of dollars’ worth of other people’s money for himself, and destroyed a cryptocurrency exchange in the process,” said U.S. Attorney Jay Clayton. “In describing his alleged ‘heist,’ Spalletta told another individual ‘Crypto is just fake internet money anyway.’ Stealing from a crypto exchange is stealing—the claim that ‘crypto is different’ does not change that. For the victims, there is nothing different about having your money taken. Spalletta cost real victims real losses of tens of millions of dollars, and now he’s under real arrest.”
“This indictment demonstrates HSI’s commitment to protecting the integrity of financial systems and holding cybercriminals accountable, regardless of the complexity or novelty of their schemes,” said HSI Acting Special Agent in Charge Kevin Murphy. “HSI will continue to aggressively pursue those who exploit vulnerabilities in emerging technologies for personal gain and ensure that justice is served for victims of these crimes.”
As alleged in the Indictment:[1]
Uranium was a decentralized cryptocurrency exchange that allowed users to deposit and exchange different kinds of cryptocurrencies via liquidity pools. In April 2021, SPALLETTA committed two separate hacks of Uranium.
In the first hack, on April 8, 2021, SPALLETTA engaged in a deceptive series of transactions with Uranium’s smart contract that SPALLETTA used to withdraw far more “rewards” in cryptocurrency than he was authorized to receive. He repeated those transactions over and over until he had drained the liquidity pool of nearly all its rewards tokens. In total, SPALLETTA successfully extracted cryptocurrency worth approximately $1.4 million in the first hack. Approximately two weeks after he fraudulently obtained the funds, SPALLETTA told another individual in writing, “I did a crypto heist of $1.5MM a couple of weeks ago . . . There was a bug in a smart contract, and I exploited it . . . Crypto is all fake internet money anyway.” SPALLETTA subsequently extorted Uranium into agreeing to allow him to keep approximately $386,000 of the money he stole as a sham “bug bounty” to help him evade prosecution in exchange for return of the remainder of the stolen money to Uranium.
In the second hack, on April 28, 2021, SPALLETTA exploited an error in the Uranium smart contract that governed how much cryptocurrency he could withdraw in a liquidity pool on Uranium. SPALLETTA exploited that issue across 26 separate Uranium liquidity pools, fraudulently obtaining approximately $53.3 million in cryptocurrency and causing Uranium to shut down due to lack of funds.
SPALLETTA then laundered the funds he had fraudulently obtained from Uranium through a complex series of cryptocurrency transactions, including by using the cryptocurrency mixer Tornado Cash.
After laundering the funds, SPALLETTA used the money he had fraudulently obtained to purchase personal collectable items, including but not limited to (i) rare cards for the trading card game Magic: The Gathering (“Magic Cards”); (ii) rare cards for the trading card game Pokémon (the “Pokémon Cards”); and (iii) antique Roman coins (the “Antique Coins”), among other items. In particular, SPALLETTA used the fraudulently obtained funds to purchase: (i) a “Black Lotus” Magic Card for approximately $500,000; (ii) 18 packs of sealed “Alpha Booster” Magic Cards for approximately $1,512,500; (iii) one sealed box of first edition “Booster” Pokémon Cards for approximately $257,500; (iv) one first edition complete base set of Pokémon Cards for approximately $750,000; (v) a piece of fabric from the original Wright brothers’ airplane that was subsequently transported to the surface of the moon by astronaut Neil Armstrong on the first moon landing, for approximately $137,500; (vi) one “Eid Mar Denarius,” an Antique Coin commemorating the assassination of Julius Caesar, for approximately $601,545.
Photographs of the Black Lotus Magic Card, the piece of fabric from the original Wright brothers’ airplane that was subsequently transported to the surface of the moon by astronaut Neil Armstrong, and certain of the Antique Coins, all of which were seized from the residence of SPALLETTA pursuant to a judicially-authorized search warrant, are below.
In addition, on February 24, 2025, law enforcement seized pursuant to a judicially-authorized seizure warrant cryptocurrency worth approximately $31 million at the time of seizure that SPALLETTA had fraudulently obtained from Uranium.
If you believe you have been a victim of the Uranium hack, please contact [email protected].
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SPALLETTA, 36, of Rockville, Maryland, is charged with one count of computer fraud, which carries a maximum sentence of 10 years in prison; and one count of money laundering, 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 a judge.
Mr. Clayton praised the outstanding work of HSI.
The case is being prosecuted by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Kevin Mead and William C. Kinder 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 therein should be treated as an allegation.
Broker Charged with Insider Trading and Obstruction of JusticeRead the Press Release
United States Attorney for the Southern District of New York, Jay Clayton, announced today the unsealing of an Indictment charging RONALD SMITH, formerly a registered broker at a brokerage firm in New York City, with securities fraud, wire fraud, falsification of records, and conspiracy. The charges arise from an alleged insider trading scheme in which SMITH used confidential corporate deal information stolen from an investment bank in New York City to make millions of dollars in illegal profits trading securities on behalf of himself, his girlfriend, and his brokerage clients. SMITH will be presented today before U.S. Magistrate Judge Ona T. Wang. The case has been assigned to U.S. District Judge George B. Daniels.
“As alleged, Ronald Smith used confidential deal information stolen from an investment bank in New York City to generate millions in profits for himself, his girlfriend, and his clients,” said U.S. Attorney Jay Clayton. “The hallmarks of our world-leading securities markets are transparency and fairness. Insider trading undermines those principles, and our Office will continue to work vigorously to hold insider traders accountable.”
As alleged in the Indictment unsealed today in Manhattan federal court:
SMITH was a registered broker at a brokerage firm in New York City, where he worked with his fellow broker and friend, Jordan Meadow. Over time, SMITH and Meadow came to share a book of clients and would split commissions on trades executed in those clients’ accounts. In 2021, Meadow started receiving information about planned corporate acquisitions from a source with illicit access to confidential investment banking documents. Meadow provided the stolen information to SMITH, and they each placed securities trades based on the information even though they understood the information had been wrongfully obtained.
Meadow received the stolen information from his friend, Steven Teixeira, who obtained it by secretly accessing confidential work documents on a computer belonging to Teixeira’s then-girlfriend, an executive assistant at an investment bank. Those documents contained confidential information about planned corporate acquisitions in which the investment bank served as an adviser.
Among the planned corporate acquisitions that Teixeira learned about by secretly accessing his then-girlfriend’s computer were planned acquisitions of Score Media and Gaming Inc. and of VMware, Inc. Teixeira shared that information with Meadow, who, in turn, shared it with SMITH. Despite knowing that the information came from an illicit source, SMITH and Meadow profitably traded on it: they purchased Score and VMware securities before any public announcement of acquisitions and then sold those securities at a profit after the public announcements of the acquisitions caused the stock prices to rise. SMITH and Meadow used the stolen information not only to trade for themselves, but also to place trades on behalf of some of their brokerage firm clients. As a result of that trading, SMITH earned approximately $484,000 in profits on Score and $47,000 on VMware; he earned his girlfriend approximately $25,000 in profits trading the securities; and together, SMITH and Meadow earned nearly $5 million in profits for their clients, on which they earned approximately $500,000 in commissions. In exchange for receiving the profitable confidential information, SMITH and Meadow agreed to give gifts or other compensation to the sources of the information, including Rolex watches (although they never followed through on providing compensation).
In the fall of 2021, FINRA contacted SMITH and Meadow, inquiring into what motivated their decision to invest in Score. SMITH and Meadow coordinated their responses, in which they falsely conveyed that their Score trades were based on research into publicly available information about the company and its sector, and not based on material nonpublic information.
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SMITH, 37, of Stamford, Connecticut, is charged with three counts of securities fraud under Title 15, one count of wire fraud, and one count of falsification of records, each of which carries a maximum sentence of 20 years in prison; one count of securities fraud under Title 18, which carries a maximum sentence of 25 years in prison; and two counts of conspiracy, each of which carries a maximum sentence of five years in prison.
The 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 the judge.
Mr. Clayton praised the outstanding work of the Federal Bureau of Investigation. Mr. Clayton also thanked the U.S. Securities and Exchange Commission, which today filed a separate action.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Nicholas W. Chiuchiolo and Samuel P. Rothschild are in charge of the prosecution.
Mississippi Man Pleads Guilty to Insider TradingRead the Press Release
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 filing of charges against, and the guilty plea of, GERARD RYAN in connection with his participation in a scheme to commit insider trading securities fraud based on material nonpublic information that RYAN obtained from a family member who worked at a Manhattan-based pharmaceutical company. RYAN pled guilty today before U.S. District John P. Cronan.
“As he admitted today, Gerard Ryan transformed confidential drug approval information into profits for himself and others,” said U.S. Attorney Jay Clayton. “Trading on stolen information harms both other market participants and the marketplace itself. SDNY’s Securities and Commodities Fraud Task Force will continue to work with our law enforcement partners to protect American markets and investors.”
"Gerard Ryan leveraged confidential information about the official announcement of a new pharmaceutical drug to make thousands of illegal trades before informing his associate to do the same," said FBI Assistant Director in Charge James C. Barnacle, Jr. "Ryan’s conduct undermined the integrity and fairness of our securities markets. The FBI does not tolerate those who use privileged details to disrupt our economic system to line their pockets with ill-gotten gains."
According to the allegations contained in the Information, other public court documents, and statements made during court proceedings:
Kadmon Pharmaceuticals was a biopharmaceutical company based in New York, New York that developed treatments for rare diseases and conditions, specifically therapies for autoimmune diseases, fibrotic conditions, and oncology. Rezurock was Kadmon’s flagship drug and was intended to treat chronic graft-versus-host disease, a serious complication that can occur after bone marrow or stem cell transplants. In or around 2021, Kadmon was seeking FDA approval for the drug. On July 16, 2021, Kadmon announced that the FDA had approved Rezurock.
Kadmon maintained the confidentiality of information around Rezurock and its FDA approval, and prohibited its employees from, among other things, disclosing confidential business information to third parties. A family member of RYAN, who worked at Kadmon in the summer of 2021 and was subject to these confidentiality policies, was warned that Kadmon’s ongoing engagement with the FDA was “HIGHLY CONFIDENTIAL” and that discussions about those activities should be limited only to within Kadmon.
Notwithstanding Kadmon’s confidentiality policies, in advance of the public announcement that the FDA had approved Rezurock, RYAN’s family member told RYAN material nonpublic information regarding Kadmon’s interactions with the FDA. RYAN used that information, which he knew had been improperly shared with him, to execute securities transactions. For example, on or about July 15, 2021, at approximately 5:58 p.m.—after the FDA had informed Kadmon that it had approved Rezurock, but before it had been publicly announced—RYAN spoke with his family member who worked at Kadmon. After the call, RYAN purchased thousands of shares of Kadmon.
RYAN also shared the material nonpublic information about the FDA announcement with an associate who traded on the basis of that information. On or about July 16, 2021—before the public announcement of the FDA approval—the individual that RYAN tipped purchased 2,250 shares of Kadmon. RYAN texted that individual the ticker symbol for Kadmon and RYAN’s “prediction” that Kadmon’s stock price would rise approximately 355%, to “$16.99” upon the FDA announcement. RYAN’s associate then sent a text message to RYAN, “What time is the news,” a reference to the non-public FDA approval, and RYAN responded with a shush emoji, “🤫” a reference to the nonpublic information he had shared.
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RYAN, 62, of Oxford, Mississippi, pled guilty to one count of securities fraud, which carries a maximum sentence of 20 years in prison.
Mr. Clayton praised the outstanding investigative work of the FBI.
This prosecution is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Nicholas W. Chiuchiolo, Peter J. Davis, and Sarah Mortazavi are in charge of the prosecution.
Federal Immigration Officer Pleads Guilty to Bribery ConspiracyRead the Press Release
United States Attorney for the Southern District of New York, Jay Clayton, announced that HENRY YAU, a former supervisory deportation officer in U.S. Immigration and Customs Enforcement (“ICE”), pled guilty today before U.S. District Judge Colleen McMahon to conspiring to solicit and accept bribes and gratuities. In exchange for bribes and gratuities, YAU abused his influence and status as a supervisory deportation officer to disclose confidential law enforcement information to unauthorized recipients, tip off an individual about an ongoing investigation by the Federal Bureau of Investigation (“FBI”), and arrest a particular individual (“Individual-1”) that members of a bank fraud conspiracy were seeking to silence and intimidate.
“U.S. Immigration and Customs Enforcement Officers are entrusted with enforcing our country’s immigration laws to preserve national security and public safety,” said U.S. Attorney Jay Clayton. “They deserve our respect when they carry out their duties with integrity and professionalism. Henry Yau failed his fellow officers and the people of New York when he breached their trust in exchange for bribes and gratuities. He does not deserve our respect. He deserves a conviction.”
According to the allegations contained in the Information, court records, and statements made in court:
YAU was a Supervisory Deportation Officer with ICE, which is a law enforcement agency within the U.S. Department of Homeland Security (“DHS”). ICE’s stated mission includes protecting the U.S. through criminal investigations and enforcing immigration laws to preserve national security and public safety. Between in or about 2015 and in or about November 2024, YAU was employed as a Deportation Officer with ICE. In or around September 2021, YAU was promoted to Supervisory Deportation Officer. YAU was assigned to the ICE New York Field Office, located in Manhattan. As an ICE Deportation Officer, YAU was given access to several password-protected law enforcement databases operated by DHS and other law enforcement agencies, including U.S. Customs and Immigration Service (“USCIS”) databases containing the status of immigration-related applications filed by aliens, U.S. Customs and Border Protection (“CBP”) databases containing information about border crossings, criminal history databases containing people’s arrest and conviction records, and ICE databases containing records relating to arrests and removals of aliens from the U.S.
From at least in or about 2015 through at least in or about 2024, YAU participated with others in a scheme to obtain bribes and gratuities in exchange for disseminating confidential law enforcement and immigration information, processing the entry of foreign nationals and other individuals into the United States, and arresting Individual-1 at the request of members of a bank fraud conspiracy. The confidential information that YAU disclosed to others included confidential law information regarding the status of a pending federal investigation into a particular individual by the FBI, as well as information about the immigration status of foreign nationals and border crossing histories. The bribes and gratuities that YAU solicited and accepted included, among other things, cash payments, dinners at expensive restaurants, and top-shelf bottles of alcohol.
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YAU, 43, of New York, New York, pled guilty to one count of conspiracy to accept bribes and gratuities, 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 the sentencing of the defendant will be determined by a judge.
Mr. Clayton praised the outstanding investigative work of the FBI. Mr. Clayton also thanked CBP’s Office of Professional Responsibility, the DHS Office of Inspector General, and the New York City Department of Investigation for their assistance with the investigation.
This case is being handled by the Office’s Public Corruption Unit and Violent Organizations & Crime Unit. Assistant U.S. Attorneys Andrew K. Chan, James Ligtenberg, and Ni Qian are in charge of the prosecution.
Walden Attorney Charged with Filing False Tax ReturnsRead the Press Release
United States Attorney for the Southern District of New York, Jay Clayton, and Special Agent in Charge of the New York Field Office of Internal Revenue Service, Criminal Investigation (“IRS-CI”), Harry T. Chavis, Jr., announced the unsealing of an Indictment charging JOHN REVELLA with four counts of subscribing to false tax returns for 2019 through 2022. REVELLA surrendered today and was presented in White Plains federal court before U.S. Magistrate Judge Judith C. McCarthy.
“John Revella allegedly filed false tax returns that underreported income from his law practice,” said U.S. Attorney Jay Clayton. “Cheating on your taxes is stealing from those who pay their fair share and from the public services that New Yorkers rely on. This Office will continue to pursue those who attempt to criminally shift their obligations onto honest taxpayers.”
“When a licensed attorney with real knowledge of the law tries to hide his alleged misconduct, IRS‑CI is there to follow the money and bring the facts to light,” said IRS-CI Special Agent in Charge Harry T. Chavis, Jr. “Today’s indictment reflects the power of coordinated financial investigations and underscores IRS‑CI’s commitment to following the facts, uncovering the truth, and holding individuals accountable when they abuse the financial system for personal gain.”
As alleged in the Indictment:[1]
REVELLA was admitted to the practice of law in New York and maintained a solo practice in Walden, New York, that focused primarily on real estate transactions. REVELLA deposited funds he received in the course of his law practice into an Interest on Lawyer Account ("IOLA") he maintained on behalf of his law practice. REVELLA did not maintain an operating bank account for his law practice.
REVELLA withdrew legal fees he earned from his practice's IOLA account primarily by drawing checks made payable to himself from the account and then cashing those checks at the bank. From 2018 to 2022 inclusive, REVELLA cashed approximately 1,700 checks in a total amount exceeding $1.1 million.
Although REVELLA reported between $22,700 to $30,750 in income from his law practice on his 2019 through 2022 tax returns, he failed to report a total of more than $1 million in such income during that period. As a result, REVELLA failed to pay a total of more than $380,000 in taxes during those four years.
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REVELLA, 48, of Walden, New York, is charged with four counts of subscribing to false tax returns, which carries a maximum sentence of 12 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.
Mr. Clayton praised the investigative work of the Special Agents of the U.S. Attorney's Office and the IRS-CI.
This case is being handled by the Office’s White Plains Division. Assistant U.S. Attorney James McMahon 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 Indictment and the descriptions of the Indictment set forth herein constitute only allegations, and every fact described should be treated as an allegation.
U.S. Attorney Charges Ulster County Woman with Receipt and Distribution of Child PornographyRead the Press Release
United States Attorney for the Southern District of New York, Jay Clayton, announced today the arrest of GABRIELLE EICHERT for receiving and distributing child pornography. EICHERT was taken in federal custody today and presented before U.S. Magistrate Judge Judith C. McCarthy in White Plains federal court.
“The sexual exploitation of children is way too common,” said U.S. Attorney Jay Clayton. “We need to get predators off the streets and send the message: you will be caught, and you will go to prison. As alleged, Gabrielle Eichert received and distributed material that re-victimizes vulnerable children and fuels further abuse. We are committed to identifying and holding accountable those who participate in these offenses. We will use every available tool to protect children and ensure that justice is served. If you have information to report, please contact the FBI at 1-800-CALL-FBI (1-800-225-5324) or https://tips.fbi.gov.”
As alleged in the Complaint:[1]
On March 17, 2026, Gregory Graff was charged in the Southern District of New York with one count of attempted coercion and enticement of a minor. Those charges followed his arrest in Orange County, New York, on January 22, 2026, by the New York State Police. The investigation of Graff, who lived and worked in the Southern District of New York since at least in or about June 2024, revealed that Graff and EICHERT used a chat application to exchange numerous images of minors, including prepubescent minors, engaged in sexual activity. During their exchange of messages, Graff and EICHERT discussed their mutual interest in sexually explicit images of minors and discussed their efforts to obtain additional such images.
EICHERT was arrested on March 24, 2026, by New York State Police. Prior to her arrest, EICHERT admitted that she exchanged messages with Graff, and that she and Graff exchanged images of minors, including prepubescent minors, engaged in sexual activity.
There may be other victims. If you have information to report, please contact the FBI at 1-800-CALL-FBI (1-800-225-5324) or https://tips.fbi.gov.
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EICHERT, 32, of Kingston, New York, is charged with one count of receipt and distribution of child pornography, which carries a minimum sentence of five years in prison and a maximum sentence of 20 years in prison.
The statutory minimum and 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 the judge.
Mr. Clayton praised the efforts of the Federal Bureau of Investigation’s New York Hudson Valley Safe Streets Task Force, New York State Police Troop F – Computer Crimes Unit, New York State Police Troop F, New York State Police Troop K, the Orange County District Attorney’s Office, the Dutchess County District Attorney’s Office, the Ulster County Sheriff’s Office, and the Ulster County District Attorney’s Office.
The prosecution is being handled by the Office’s White Plains Division. Assistant U.S. Attorneys Marcia S. Cohen and John Wynne are in charge of the prosecution.
[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.
Bronx Man Charged with the Fatal Fentanyl Poisoning of A 12 Year Old BoyRead the Press Release
United States Attorney for the Southern District of New York, Jay Clayton, Special Agent in Charge of the New York Task Enforcement Division of the Drug Enforcement Administration (“DEA”), Farhana Islam, and the Commissioner of the New York City Police Department (“NYPD”), Jessica S. Tisch, announced today the unsealing of an Indictment charging ARISTIDES CABRERA, a/k/a “Buddha,” with drug crimes resulting in the fatal poisoning of a 12‑year-old child in the Bronx on June 28, 2022. The Indictment also charges CABRERA with having used, carried, and possessed firearms in connection with his drug trafficking crimes. Today, CABRERA was brought into federal custody from New York State custody, where he had been serving state sentences for other firearm and drug crimes. CABRERA will be presented today before U.S. Magistrate Jennifer E. Willis. The case is assigned to U.S. District Judge J. Paul Oetken.
“As alleged, Aristides Cabrera was an armed drug dealer who pumped deadly drugs into the Bronx for years,” said U.S. Attorney Jay Clayton. “The havoc that his alleged drug trafficking wrought did not stop at his own doorstep; it resulted in the tragic death of a vulnerable 12-year-old boy in Cabrera’s own home. But even the boy’s death did not stop Cabrera from allegedly continuing to deal drugs, exposing others to the same life-threatening poison that claimed the life of an innocent child. Fentanyl kills. It kills children. If you deal fentanyl, you are dealing death. The women and men of the SDNY, the DEA, the NYPD and all our New York law enforcement partners will hold dealers of death accountable.”
“Weapons, drugs, and violence are too often the hallmarks of drug trafficking organizations operating in our communities,” said DEA New York Enforcement Division Special Agent in Charge Farhana Islam. “Today’s indictment of Aristides Cabera underscores that deadly reality—linking narcotics distribution, firearms, and the devastating loss of a 12-year-old child to fentanyl poisoning. No family should have to endure the pain of losing a child to this poison and the DEA New York Enforcement Division remains vigilant and unwavering in our mission to target these individuals and ensure justice is delivered.”
“Aristedes Cabrera showed a callous disregard for human life, allegedly selling fentanyl in a home where a 12-year-old boy was exposed to the drugs that killed him,” said NYPD Commissioner Jessica S. Tisch. “This case is a devastating example of the danger fentanyl poses, especially when it is brought into a home where children are present. I thank the NYPD officers whose undercover work helped build this case and the U.S. Attorney’s Office for their partnership.”
As alleged in the Indictment and other public filings:[1]
From at least in or about November 2017 through at least in or about January 2024, CABRERA and his co-conspirators distributed heroin, fentanyl, and para-fluorofentanyl in the Bronx. CABRERA sold large quantities of heroin and fentanyl to undercover law enforcement officers. In a covert video recording of CABRERA during one of those undercover drug sales—in which CABRERA sold an undercover officer nearly $2,000 worth of fentanyl-laced heroin—CABRERA can be heard, in substance and in part, describing how he was charging higher prices for pills because “it’s a fucking opioid epidemic out here.” At the height of his drug trafficking, CABRERA was making up to approximately $10,000 a week from dealing drugs.
On June 28, 2022, exposure to the fentanyl and para-fluorofentanyl distributed by CABRERA caused the death of a twelve-year-old boy who had been residing with CABRERA and others in an apartment in the Bronx.
CABRERA kept significant quantities of his drugs in the apartment, including in a safe stored in a closet just outside of the bedroom that the twelve-year-old boy shared with at least one of his siblings. CABRERA kept two guns in the same safe. He also stored additional drugs, including pills, in the apartment’s primary bedroom, including in bags that he kept there. In the early morning of June 29, 2022, after returning from the hospital where the twelve-year-old boy had been taken and pronounced dead, CABRERA began looking for one of the bags where he stored his drug supply, texting another person he wanted “to make sure nothing is missing.”
Following the boy’s fatal overdose, CABRERA continued to sell drugs throughout New York, including from behind bars in New York state custody while detained during the pendency of the separate firearms and drug charges that resulted in his recent state court convictions.
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CABRERA, 34, of the Bronx, New York, is charged with one count of conspiracy to distribute narcotics resulting in death and one count of distribution of narcotics resulting in death, both 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 one count of firearms use, carrying, and possession, which carries a mandatory minimum sentence of five years in prison and a maximum sentence of life in prison.
The statutory minimum and maximum sentences 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 NYPD in connection with this investigation, along with their federal partners at the DEA. Mr. Clayton also thanked the Bronx District Attorney’s Office.
This case is being handled by the Office’s Narcotics Unit. Assistant U.S. Attorneys Benjamin M. Burkett, Lisa Daniels, and Amanda C. Weingarten are in charge of the prosecution.
The charges contained in the Indictment are merely allegations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth in this release constitute only allegations, and every fact described should be treated as an allegation.
Trinitarios Gang Member Sentenced to 27 Years in Prison for Gunpoint Robberies, Including A Robbery That Resulted in A MurderRead the Press Release
United States Attorney for the Southern District of New York, Jay Clayton, announced that GIBRAN GUERRERO, a/k/a “Cojito,” was sentenced yesterday to 27 years in prison by U.S. District Judge Lorna G. Schofield for participating in several gunpoint robberies as part of his membership in the violent gang known as the Trinitarios, including a robbery that resulted in the murder of Johnny Gaston. GUERRERO previously pled guilty to one count of racketeering conspiracy and two counts of use of a firearm during and in relation to the robberies.
“For too long, the Trinitarios have used intimidation, robbery, and deadly force to terrorize communities,” said U.S. Attorney Jay Clayton. “The defendant and his fellow gang members carried out a series of brazen, gunpoint robberies and, in December 2022, lured victims into an ambush that left one man dead, and another seriously wounded. He is now where New Yorkers want him—in prison for 27 years. Today’s 27-year sentence sends a clear message that gang violence will be met with significant consequences.”
As alleged in statements made in public filings and public court proceedings:
From at least in or about 2021 up to and including 2023, GUERRERO was a member of the Trinitarios gang. In order to fund the gang, protect its territory, and promote its standing, members of the Trinitarios, including GUERRERO, engaged in, among other things, robberies, frauds, narcotics trafficking, and other acts of violence, including murder.
On December 15, 2022, GUERRERO and other Trinitarios members lured two victims to a location in the Bronx and robbed them. During the robbery, one of the victims, Johnny Gaston, was shot and killed. The other victim was shot but survived.
In addition, on or about July 30, 2022, and September 26, 2022, GUERRERO and other Trinitarios members participated in gunpoint robberies of several victims located in the Bronx.
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In addition to the prison term, GUERRERO, 22, of the Bronx, New York, was sentenced to three years of supervised release.
Mr. Clayton praised the outstanding efforts of Homeland Security Investigations and the New York City Police Department.
The prosecution is being handled by the Office’s Violent Organizations and Crime Unit. Assistant U.S. Attorney Timothy Ly, with assistance from former Assistant U.S. Attorneys Mathew Andrews and Rushmi Bhaskaran, is in charge of the prosecution.
SDNY Announces Recovery of Hundreds of Millions of Dollars for Victims of Iran-Sponsored TerrorismRead the Press Release
United States Attorney for the Southern District of New York, Jay Clayton, announced today that the United States has entered into a settlement resolving a 17-year forfeiture litigation that will result in the payment of approximately $318 million to hundreds of victims of Iranian state-sponsored terrorism.
In 2008, the United States commenced a forfeiture action that exposed an Iranian government-owned bank’s secret interest in 650 Fifth Avenue, a 36-story commercial and office tower located in the heart of Manhattan. Following the filing of the forfeiture complaint, hundreds of victims of Iranian government-sponsored terrorism filed claims and initiated separate litigation to enforce judgments obtained against the Government of Iran. After more than 17 years of complex litigation, all remaining parties to the related actions have entered into a global settlement that will result in a multi-hundred-million-dollar payment to these long-suffering victims, including victims and family members of the 1984 bombings of U.S. military facilities in Beirut, Lebanon; of the September 11, 2001 terrorist attacks in New York and Washington, D.C.; and Iranian proxy terrorist organizations’ attacks against civilians, including U.S. citizens, in Israel and elsewhere.
“Iran has sponsored terrorism for decades,” said U.S. Attorney Jay Clayton. “Since the inception of this litigation, the overriding goal of the Department of Justice has been to vindicate the rights of victims of the Government of Iran’s long-standing policy of supporting and promoting terror attacks across the world, including 9/11. This Office’s many years of determined litigation show our unrelenting commitment to victims’ rights, and has led to this significant recovery. For nearly two decades, we pursued hidden Iranian government assets tied to a Manhattan skyscraper to ensure those funds would ultimately compensate victims of Iran-sponsored terrorism rather than terrorists and their enablers.”
According to the Complaint, Amended Complaint, public court filings, and other public litigation records:
The building at 650 Fifth Avenue (the “Building”) was originally constructed by a charitable foundation controlled by the former Shah of Iran, Mohammad Reza Pahlavi, prior to the Islamic Revolution that led to the installation of the current regime in Iran in 1979. The new regime took over control of the charitable foundation and created a partnership with Bank Melli Iran, an Iranian government-owned bank sanctioned by the U.S. government for its role in financing Iran’s weapons of mass destruction programs. Bank Melli Iran controlled its interest in the Building through front companies known as Assa that were established in the Isle of Man and in New York. The highest levels of the Iranian regime orchestrated this deceptive structure in the 1980s, including the Iranian Central Bank and the offices of the Prime Minister and the President of Iran.
After the imposition of broad sanctions against the Government of Iran by the United States in 1995, the owners of the Building concealed Bank Melli Iran’s ownership interest and facilitated the payment of tens of millions of dollars of income from the Building’s operations to Bank Melli through Assa.
In October 2008, this Office filed a forfeiture complaint against Bank Melli Iran’s interest in the Building. In November 2009, this Office filed an amended forfeiture complaint against the entire Building and other related properties. Following the filing of the complaint and the amended complaint, numerous groups of judgment creditors holding judgments against the Government of Iran for injuries resulting from state-sponsored terrorism filed claims and independent judgment-enforcement actions against Assa, the Building, and the Building’s owner.
In April 2014 and July 2017, the Office entered into settlements with these victims’ groups providing that any recovery the Government obtained through forfeiture would be distributed to the victims. In July 2017 and May 2021, the Office and the victims’ groups all obtained judgments against Assa’s interests in the Building and in related partnership distributions from the Building’s income.
In January 2025, this Office, the victims’ groups, and the Building’s owner entered into a further, final settlement providing for the dismissal of all remaining claims in exchange for a payment of $318 million to the victims’ groups, consisting of an initial payment of $129 million and a deferred payment of $189 million to be paid in three years, plus interest. The initial $129 million payment was completed Friday, March 20, 2026.
In addition to providing for recovery for terrorism victims, in connection with the settlement the partnership that owned the Building and the majority partner are being dissolved and the Building is being transferred to a new successor entity. The transfer of the Building and the transactions to consummate the global settlement agreement received approvals from the Office of the New York Attorney General’s Charities Bureau and the U.S. Department of the Treasury, Office of Foreign Assets Control.
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Mr. Clayton praised the outstanding investigative work of the Federal Bureau of Investigation (“FBI”) and its New York Field Office Counterintelligence/Cyber Division; the FBI’s Joint Terrorism Task Force; the Internal Revenue Service, Criminal Investigation Division; and the New York City Police Department. Mr. Clayton also thanked the Counterterrorism Section of the Department of Justice National Security Division for their assistance in this case.
This case is being handled by the Office’s Illicit Finance and Money Laundering Unit. Assistant U.S. Attorney Michael D. Lockard is in charge of the civil forfeiture action.
Bronx Man Sentenced to 25 Years in Prison for Enticement of Minors and Possession of Child PornographyRead the Press Release
United States Attorney for the Southern District of New York, Jay Clayton, announced today that WINSTON COLON CORREA was sentenced to 25 years in prison for enticing minors and possessing child pornography. COLON CORREA’s sentence was imposed by U.S. District Judge Jennifer H. Rearden, who also presided over the guilty plea.
“Winston Colon Correa preyed on children by pressuring them to record and send videos of themselves engaged in sexually explicit conduct,” said U.S. Attorney Jay Clayton. “On at least two occasions, he even met with one of his child victims and pressured her to have sex, which Colon Correa recorded. New Yorkers want those who engage in such heinous conduct off our streets. This Office, and our law enforcement partners, will pursue every lead and use every tool to rid our communities of those who sexually exploit our children. The message to predators from our Office is clear: there is no place for you in New York other than prison.”
According to the allegations in the Information, public filings, and statements made in public court proceedings:
Beginning in at least 2022, COLON CORREA engaged in sexually explicit text message conversations with numerous minor girls he met online, during which he induced the production of child pornography of at least Minor Victim-1, Minor Victim-2, Minor Victim-3, and Minor Victim-4. Law enforcement’s review of COLON CORREA’s electronic devices revealed that for multiple years, he engaged in sexually explicit text message conversations with many other unidentified individuals believed to also be minor girls. COLON CORREA committed these crimes despite knowing that he was communicating with minors. In fact, many of the minors made clear to COLON CORREA that they were underage—e.g., that they were in school, that they lived at home with their parents, and in multiple cases, their actual ages. On at least two occasions, COLON CORREA falsely represented to minor girls that he was only 17 years old. In addition, COLON CORREA met in person on at least two occasions with one identified victim, Minor Victim-4, during which COLON CORREA pressured Minor Victim-4 to perform oral sex and have sexual intercourse. Thereafter, when he was confronted by law enforcement, COLON CORREA falsely claimed that he had ceased contact with Minor Victim-4 after learning that she was a minor. In reality, COLON CORREA had exchanged sexually explicit messages with Minor Victim-4, and attempted to make plans to meet her again, just one day earlier.
Anyone who believes they have information concerning the exploitation of children is urged to contact the FBI at 1-212-384-1000 or https://tips.fbi.gov/.
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In addition to the prison term, COLON CORREA, 34, of the Bronx, New York, was sentenced to 20 years of supervised release.
Mr. Clayton praised the outstanding work of the Federal Bureau of Investigation and the Washington, D.C. Metropolitan Police Department in connection with this investigation.
The prosecution is being handled by the Office’s General Crimes Unit. Assistant U.S. Attorney William C. Kinder is in charge of the prosecution.
Three Charged with Conspiring to Unlawfully Divert U.S. Artificial Intelligence Technology to ChinaRead the Press Release
United States Attorney for the Southern District of New York, Jay Clayton, Assistant Director of the Counterintelligence and Espionage Division of the Federal Bureau of Investigation (“FBI”), Roman Rozhavsky, and Assistant Director in Charge of the New York Field Office of the FBI, James C. Barnacle, Jr., announced today the unsealing of an Indictment charging YIH-SHYAN “Wally” LIAW, RUEI-TSANG “Steven” CHANG, and TING-WEI “Willy” SUN, for conspiring to divert high-performance computer servers assembled in the United States and integrating sophisticated U.S. artificial intelligence technology to China, in violation of U.S. export controls laws. LIAW, a U.S. citizen, and SUN, a citizen of Taiwan, were arrested today and presented in the Northern District of California. CHANG, a citizen of Taiwan, remains a fugitive. The case has been assigned to U.S. District Judge Edgardo Ramos.
“As alleged in the Indictment, the defendants participated in a systematic scheme to divert massive quantities of U.S. artificial intelligence technology to customers in China,” said U.S. Attorney Jay Clayton. “They did so through a tangled web of lies, obfuscation, and concealment—all to drive sales and generate revenues in violation of U.S. law. Diversion schemes like those disrupted today generate billions of dollars in ill-gotten gains and pose a direct threat to U.S. national security. Crimes involving sensitive technology must be met with swift action otherwise the law is meaningless. I commend the women and men of our Office, the FBI, and the Department of Commerce for their swift action in identifying, charging, and stopping this brazen evasion of our laws that protect national security and U.S. competitiveness. We will continue to doggedly investigate and prosecute these illegal diversion schemes.”
“The FBI’s investigation revealed that Liaw, Chang, and Sun allegedly conspired to sell billions of dollars’ worth of servers integrating sensitive, controlled graphic processing units to buyers in China, in violation of U.S. export control laws,” said Assistant Director Roman Rozhavsky of the FBI’s Counterintelligence and Espionage Division. “Controlling the export of sensitive U.S. artificial intelligence technology is essential to safeguarding our national security and defending the homeland. That’s why combating export violations is among the FBI’s highest priorities, and we will continue working with our law enforcement, private sector, and international partners to bring to justice all who take action to undermine U.S. national security.”
“Yih-Shyan Liaw, Ruei-Tsang Chang, and Ting-Wei Sun allegedly defrauded the United States by conspiring to divert significant quantities of servers with advanced artificial intelligence capabilities to Chinese customers,” said FBI Assistant Director in Charge James C. Barnacle, Jr. “These defendants allegedly fabricated documents, staged bogus equipment to pass audit inventories, and used a pass-through company to conceal their misconduct and true clientele list. The FBI will hold accountable individuals who use American companies to provide export-controlled technology to our adversaries.”
According to the allegations contained in the Indictment unsealed today in Manhattan federal court:[1]
To protect U.S. national security and foreign policy interests, the U.S. Department of Commerce has implemented license requirements for the export and reexport of artificial intelligence technologies to China and Hong Kong. In particular, the U.S. Department of Commerce has placed restrictions on the export and reexport of items that could make a significant contribution to the military potential or nuclear proliferation of other nations or that could be detrimental to the foreign policy or national security of the United States. For these reasons, among others, advanced artificial intelligence accelerator chips, and servers incorporating such chips, are subject to export license requirements for transfers to China and Hong Kong. Those regulations reflect a formal determination that the computing capabilities in advanced artificial intelligence accelerator hardware are of sufficient strategic significance that their transfer to China poses an unacceptable risk to national security.
LIAW is a co-founder, board member, and Senior Vice President of Business Development of a publicly traded U.S.-based manufacturer that designs and builds high-performance computer servers for artificial intelligence and cloud computing applications (the “U.S. Manufacturer”), including servers that integrate artificial intelligence graphics processing units (“GPUs”). CHANG is a general manager in the U.S. Manufacturer’s Taiwan office. SUN is a third-party broker and “fixer” who has worked with LIAW, CHANG, and others to divert U.S.-export controlled technology to China. Together, the defendants and others conspired to systematically divert the U.S. Manufacturer’s servers with certain GPUs to China without a license to do so from the U.S. Department of Commerce.
The scheme operated as follows. LIAW and CHANG, who worked closely with third-party brokers with customers based in China, directed certain executives of a company based in Southeast Asia (“Company-1”) to place purchase orders with the U.S. Manufacturer for servers with certain GPUs, purportedly for Company-1. Those servers were often assembled in the United States and shipped to the U.S. Manufacturer’s facilities in Taiwan, then delivered to Company-1 elsewhere in Southeast Asia. Company-1, in consultation with the defendants, then used a shipping and logistics company to repackage the U.S. Manufacturer’s servers and place them in unmarked boxes to conceal their content prior to shipping them to their final destinations in China. To ensure that these server allocations were approved internally at the U.S. Manufacturer, the defendants and executives at Company-1 prepared false documents and records, and transmitted false communications, purporting to show that Company-1 was the end user of the servers.
At the defendants’ direction, between 2024 and 2025, Company-1 purchased approximately $2.5 billion worth of servers from the U.S. Manufacturer, many of which were assembled in the United States. The defendants’ scheme became more brazen over time and resulted in massive quantities of servers with controlled U.S. artificial intelligence technology being sent to China. Between late April 2025 and mid-May 2025 alone, at least approximately $510 million worth of the U.S. Manufacturer’s servers, assembled in the United States, were diverted to China in violation of U.S. export control laws as part of the defendants’ scheme.
The defendants and their co-conspirators took extensive measures to conceal their scheme. As just one example, to deceive the U.S. Manufacturer’s compliance team, responsible for ensuring adherence to U.S. export control laws, the defendants staged thousands of “dummy” servers—non-working, physical replicas of the U.S. Manufacturer’s servers—for inspection at the locations where Company-1 was purportedly storing the servers it had purchased from the U.S. Manufacturer. However, the actual servers purchased by Company-1 from the U.S. Manufacturer had already been unlawfully shipped to China. Photographs of some of the dummy servers that were staged at a warehouse rented by Company-1 in connection with an August 2025 audit conducted by the U.S. Manufacturer are below:
Some of those same dummy servers were also later staged at a warehouse rented by Company-1 in an attempt to pass an inspection being conducted by the U.S. Department of Commerce of Company-1’s purchases of the U.S. Manufacturer’s servers. In advance of the inspection, SUN and one of the third-party brokers who works closely with the defendants to divert servers to China (“Broker-1”) staged dummy servers at the warehouse by, among other things, unboxing the dummy servers; using a hair dryer to remove and affix labels and serial number stickers to the server boxes and to the dummy servers themselves; and then re-packaging the dummy servers in the U.S. Manufacturer’s boxes. Surveillance cameras recorded their work and captured them preparing the dummy servers, including as shown in the images below, in which SUN (left) and Broker-1 (right) are circled in white:
Throughout the scheme, the defendants coordinated closely with each other, executives of Company-1, and third-party brokers with end customers in China using encrypted messaging applications. Those communications related to, among other topics, the quantities of servers for Company-1 to order, the locations in China where those servers were to be shipped, and efforts to conceal the nature of the scheme from the U.S. Manufacturer’s compliance team, U.S. authorities, and others. At no point did the defendants or the U.S. Manufacturer have a license from the U.S. Department of Commerce to export or reexport U.S.-manufactured servers to China.
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LIAW, 71, of Fremont, California; CHANG, 53, of Taiwan; and SUN, 44, of Taiwan, are each charged with one count of conspiring to violate the Export Controls Reform Act, which carries a maximum sentence of 20 years in prison; one count of conspiring to smuggle goods from the United States, which carries a maximum sentence of five years in prison; and one count of conspiring to defraud the United States, 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 work of the FBI and its New York Field Office’s Counterintelligence and Cyber Division, the Department of Commerce’s Bureau of Industry and Security, and the Department of Justice’s National Security Division, Counterintelligence and Export Control Section. Mr. Clayton also thanked the FBI’s San Francisco Field Office and the Department of Justice’s Office of International Affairs for their assistance.
This case is being handled by the Office’s National Security and International Narcotics Unit and Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Juliana N. Murray, David J. Robles, and Kevin T. Sullivan are in charge of the prosecution, with assistance from Trial Attorneys Maria Fedor and Mark Murphy of the National Security Division’s Counterintelligence and Export Control Section.
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 descriptions of the Indictment constitute only allegations, and every fact described should be treated as an allegation.
Social Media Influencer Pleads Guilty to Investment Adviser FraudRead the Press Release
United States Attorney for the Southern District of New York, Jay Clayton, announced that KENNETH THOM, a/k/a “K$,” a/k/a “K Money,” pled guilty today before U.S. District Judge Edgardo Ramos to investment adviser fraud. THOM is scheduled to be sentenced by Judge Ramos on June 25, 2026.
“Kenneth Thom pretended online to be a successful investor and adviser when in fact he was a suspended broker and grifter,” said U.S. Attorney Jay Clayton. “He recruited social media followers, convinced them to invest with him, and then stole their money. Our Office will continue to work with our law enforcement partners to protect investors from fraud no matter where they seek their investment advice. Especially on social media, we remind investors to always protect themselves from fraud by verifying the credentials of those they invest with, and to always protect investments through due diligence.”
According to the allegations contained in the Indictment and other information in the public record:
In May 2006, THOM passed securities licensing examinations and registered as a broker with the Financial Industry Regulatory Authority (“FINRA”). In or around January 2011, FINRA suspended THOM’s broker registration after he failed to pay an arbitration award to an investor. THOM also admitted around that time to the FBI that he had commingled that investor’s money with his own money in a brokerage account that THOM controlled and lost most of the money through unsuccessful trading. THOM further admitted that when the investor sought to withdraw her funds, he did not tell the investor that he had lost her money and instead invented fake excuses and then ignored the investor altogether.
After being suspended by FINRA, THOM turned to social media and promoted himself online as a successful trader. Using the monikers “K$” and “K Money,” THOM described himself as a “Wall Street veteran,” a “luminary,” and a “beacon of knowledge,” and he used his online platforms to sell trading courses and trade suggestions to his followers. One of THOM’s platforms was a Facebook group called, at relevant times, the “K$ Trading Group” (the “K$ Facebook Group”), in which THOM posted the results of his purportedly successful trades.
Beginning in late 2023, THOM invited members of the K$ Facebook Group to participate in “shared accounts” that THOM would manage in exchange for a percentage of the trading profits. THOM eventually raised nearly $800,000 from approximately 67 clients. Of this sum, THOM invested only approximately $350,000, diverting most of the remainder for his own personal use, including on travel, dining, and luxury goods.
Of the $350,000 that THOM invested, he lost more than $250,000 trading options, for a net loss of approximately 73% between in or around March 2024 and March 2025. To hide these losses, THOM published false performance updates showing significant gains. For example, on or around July 3, 2024, THOM posted in the K$ Facebook Group that each of his three purported shared accounts was positive year-to-date, with returns ranging from 4% to 120%. In fact, as of the close of the preceding trading day, THOM had lost approximately 31% of the client funds he invested to date.
In or about January 2025, the name of the K$ Facebook Group was changed to “AYBABTU”—an acronym for the Internet meme “all your base are belong to us”—and THOM stopped responding to clients.
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THOM, 42, of Westfield, New Jersey, pled guilty to investment adviser fraud, 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 the sentencing of the defendant will be determined by a judge.
Mr. Clayton praised the outstanding work of the FBI. 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. Attorney Alexander Li is in charge of the prosecution.
North Carolina Man Pleads Guilty to Music Streaming Fraud Aided by Artificial IntelligenceRead the Press Release
United States Attorney for the Southern District of New York, Jay Clayton, announced the guilty plea today of MICHAEL SMITH for his role in a scheme to defraud music streaming platforms and musicians of royalty payments. To carry out the scheme, SMITH created hundreds of thousands of songs with artificial intelligence and used automated programs called “bots” to fraudulently stream his AI-generated songs billions of times, in an effort to mimic the genuine streaming activity of real consumers. SMITH pled guilty today to conspiracy to commit wire fraud before U.S. District Judge John G. Koeltl.
“Michael Smith generated thousands of fake songs using artificial intelligence and then streamed those fake songs billions of times,” said U.S. Attorney Jay Clayton. “Although the songs and listeners were fake, the millions of dollars Smith stole was real. Millions of dollars in royalties that Smith diverted from real, deserving artists and rights holders. Smith’s brazen scheme is over, as he stands convicted of a federal crime for his AI-assisted fraud.”
According to the charging documents and statements made in public filings and public court proceedings:
Music can be streamed through music streaming platforms such as Amazon Music, Apple Music, Spotify, and YouTube Music (the “Streaming Platforms”). Each time a song is streamed through one of the Streaming Platforms, the songwriter who composed the song, the musician who performed it, and in certain cases other rights holders, are entitled to small royalty payments. Royalty payments are made proportionately to musicians and songwriters from a pool of funds. As a result, streaming fraud diverts funds from musicians and songwriters whose songs were legitimately streamed by real consumers to those who use automation to falsely create the appearance of legitimate streaming.
SMITH created thousands of accounts on the Streaming Platforms (the “Bot Accounts”) that he could use to stream songs. He then used software to cause the Bot Accounts to continuously stream songs that he owned.
SMITH spread his automated streams across thousands of songs to avoid anomalous streaming as to any single song, which would likely cause the Streaming Platforms to discover his scheme. To obtain the necessary number of songs for his scheme to succeed, SMITH turned to artificial intelligence, which he used to create hundreds of thousands of AI-generated songs for which he could manipulate the streams.
SMITH’s hundreds of thousands of AI-generated songs were streamed by his Bot Accounts billions of times, which allowed him to fraudulently obtain more than $8 million in royalties.
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SMITH, 54, of Cornelius, North Carolina, pled guilty to one count of conspiracy to commit wire fraud, which carries a maximum sentence of five years in prison. SMITH also agreed to pay $8,091,843.64 in forfeiture.
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. SMITH is scheduled to be sentenced by Judge Koeltl on July 29, 2026.
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 Nicholas W. Chiuchiolo and Kevin Mead are in charge of the prosecution.
Maximiliano Davila Perez, Former Director of Bolivia’s National Anti-Narcotics Agency, Sentenced to 25 Years in Prison for Conspiring to Import Cocaine and Related Firearms OffenseRead the Press Release
United States Attorney for the Southern District of New York, Jay Clayton, and Administrator of the U.S. Drug Enforcement Administration (“DEA”), Terrance Cole, announced that MAXIMILIANO DAVILA PEREZ was sentenced today to 25 years in prison for participating in a cocaine-importation conspiracy and a related weapons offense. DAVILA PEREZ is the former director of Bolivia’s chief anti-narcotics law enforcement agency, Fuerza Especial de Lucha Contra el Narcotráfico (“FELCN”) and was extradited to the United States from Bolivia in December 2024. Davila Perez was convicted on October 23, 2025, following a one-week jury trial before U.S. District Judge Denise L. Cote, who imposed today’s sentence.
“Maximiliano Davila Perez wielded extraordinary power as Bolivia’s top counternarcotics officer and chose to abuse that power to support the very drug traffickers he was sworn to investigate, all to send massive quantities of cocaine to New York,” said U.S. Attorney Jay Clayton. “Now, because of Davila Perez’s corruption and brazen attempt to flood our streets with cocaine, he will spend 25 years in federal prison. Our Office, alongside our partners at the DEA’s Special Operations Division, will continue to root out high-level narco-corruption around the globe that threatens our country and New Yorkers.”
“Betrayal of public trust by a law enforcement official is a complete abandonment of the oath they swore to uphold,” said DEA Administrator Terrance Cole. “Maximiliano Dávila Pérez turned his office into a criminal enterprise—protecting traffickers, ensuring the movement of cocaine, and directly enabling the flow of drugs into the United States. His actions fueled violence, corruption, and addiction. Today’s sentence makes clear that no badge, no title, and no position will shield those who choose crime over duty. DEA will identify, expose, and bring to justice anyone who abuses power to traffic drugs into our communities, wherever they operate.”
As reflected in the Superseding Indictment, other filings in Manhattan federal court, evidence at trial, and statements made in court proceedings:
Between approximately February 2019 and November 2019, while DAVILA PEREZ served as the Director of FELCN, and thereafter, he exploited his office and his powerful political and law enforcement connections to facilitate massive, international-scale cocaine trafficking. DAVILA PEREZ’s methods included both diverting law enforcement from investigating favored cocaine traffickers and providing heavily armed FELCN personnel as security for cocaine shipments leaving Bolivian airports. DAVILA PEREZ conspired with others to manufacture, ship, and provide armed protection for more than one metric ton of cocaine destined for the United States, and specifically, for New York.
DAVILA PEREZ did so during meetings and calls with his co-conspirators that were recorded by DEA confidential sources (the “CSes”) who also participated between approximately 2019 and 2020. Those meetings and calls resulted in the arrangement of a 10-kilogram sample of cocaine, authorized by DAVILA PEREZ, to be provided to the CSes in Lima, Peru, in December 2019. Throughout the conspiracy, DAVILA PEREZ repeatedly emphasized his willingness to participate in and provide protection for a shipment of over one ton of cocaine leaving Bolivia and transiting through the Dominican Republic before ultimately reaching New York.
DAVILA PEREZ made explicit his plans to facilitate that shipment. During recorded calls and meetings, DAVILA PEREZ suggested certain airports where he controlled airport security and could divert FELCN personnel to ensure a plane would successfully be loaded with cocaine. Specifically, DAVILA PEREZ said that on the day of the cocaine shipment, he would carry out an operation elsewhere and “take out everyone,” that is, ensure no investigative or operational FELCN personnel were available to interfere with the drug plot. He also committed to sending certain FELCN agents to guard the plane with their standard issue firearms—high-powered machineguns— as it was loaded with cocaine. DAVILA PEREZ also made explicit that he intended to profit from this cocaine deal, telling one of the CSes on a recording that “you are also going to profit, I am going to win too.” As the plot progressed over several months, DAVILA PEREZ continued to assure his co-conspirators and the CSes that he would arrange for the armed protection of the cocaine shipment so that it could safely leave Bolivia. And DAVILA PEREZ made clear that he had no regard for the fact that the cocaine was destined for the United States, telling a co-conspirator that he did not “give a shit,” because “the important thing is that the plane should take off and that we receive our money.”
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In addition to the prison term, DAVILA PEREZ, 62, was sentenced to five years of supervised release.
Mr. Clayton praised the outstanding efforts of the DEA’s Special Operations Division Bilateral Investigations Unit, as well as the U.S. Department of Justice’s Office of International Affairs.
This case is being handled by the Office’s National Security and International Narcotics Unit. Assistant U.S. Attorneys Matthew J.C. Hellman, David J. Robles, and Chelsea L. Scism are in charge of the prosecution.
U.S. Attorney Charges Dutchess County Man with Coercion and Enticement of A MinorRead the Press Release
United States Attorney for the Southern District of New York, Jay Clayton, announced today the arrest of Gregory Graff in connection with communicating online with an individual he believed to be a 13-year-old girl and attempting to meet the individual to engage in sexual activities. Graff was taken in federal custody today, presented before U.S. Magistrate Judge Andrew E. Krause in White Plains federal court, and detained.
“Gregory Graff is every parent’s nightmare,” said U.S. Attorney Jay Clayton. “He allegedly used the internet to convince an individual, whom he believed to be a minor, to meet him for sexual activity. This prosecution shows that we will use every tool available to law enforcement to prosecute and punish to the fullest extent of the law those who exploit New York’s most vulnerable citizens: our children. There may be other victims. If you have information to report, please contact the FBI at 1-800-CALL-FBI (1-800-225-5324) or https://tips.fbi.gov.”
As alleged in the Complaint:[1]
On January 21 and January 22, 2026, a New York State Police Investigator (“Investigator‑1”), posing as a 13-year-old girl named “Sammi” on a social media application, communicated with GRAFF. During the communications, GRAFF asked “Sammi” for sexually explicit photos and indicated that he wanted to meet with her to have sex.
Furthermore, in her conversations with GRAFF, Investigator-1 referred on multiple occasions to the fact that she was 13 years old, also telling GRAFF that she was in 8th grade. Among other things, GRAFF told her, “It’s risky to talk to you but it’s quite hot.” GRAFF described in detail various sexual activities that he wanted to engage in with her and said that he would want her to call him “daddy” when they have sex. During their communications, GRAFF sent Investigtor-1 a number of sexually explicit photos, as well photos of his face, including this one:
On January 21, 2026, GRAFF made a plan to meet “Sammi” in Orange County, New York. On January 22, 2026, when GRAFF arrived at the agreed-upon meeting spot, he was arrested by the New York State Police. Following his arrest, GRAFF was charged in the Town of Wallkill with Attempted Rape in the Second Degree, Attempted Act in the Manner to Injure a Child Less than 17, and Disseminating Indecent Material to Minors in the 1st Degree.
There may be other victims. If you have information to report, please contact the FBI at 1-800-CALL-FBI (1-800-225-5324) or https://tips.fbi.gov.
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GRAFF, 27, of Poughkeepsie, New York is charged with one count of attempted coercion and enticement of a minor, which carries a minimum of 10 years in prison and a maximum sentence of life in prison.
The statutory minimum and 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 the judge.
Mr. Clayton praised the efforts of the Federal Bureau of Investigation’s New York Hudson Valley Safe Streets Task Force, New York State Police Troop F – Computer Crimes Unit, New York State Police Troop K, the Orange County District Attorney’s Office, and the Dutchess County District Attorney’s Office.
The prosecution is being handled by the Office’s White Plains Division. Assistant U.S. Attorneys Marcia S. Cohen and John Wynne are in charge of the prosecution.
[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.
Poughkeepsie Man Sentenced to 15 Years in Prison for Selling Guns, Fentanyl, and Crack CocaineRead the Press Release
United States Attorney for the Southern District of New York, Jay Clayton, announced that Joseph Crocco was sentenced to a total of 15 years in prison for dealing guns, fentanyl, and crack in Poughkeepsie, New York, while on federal supervised release. In June 2025, the defendant was convicted following a four-day trial before U.S. District Judge Cathy Seibel, who imposed yesterday’s sentence.
“Joseph Crocco sold deadly drugs and loaded guns to New Yorkers, understanding that they would be used to violent and poisonous ends,” said U.S. Attorney Jay Clayton. “New York families want repeat offenders, particularly those who deal in fentanyl and guns, off the streets. This sentence delivers that.”
According to the allegations in the Indictment, the evidence at trial, court filings, and statements made in court:
Between June and July 2024, CROCCO sold narcotics and firearms from his residence in Poughkeepsie, New York, to an undercover New York State Police officer. During a series of controlled purchases made at CROCCO’s home, CROCCO sold fentanyl, crack, cocaine, and cutting agents such as xylazine, also known as “tranq.” CROCCO also sold two loaded semi-automatic handguns and boxes of ammunition to the undercover officer as part of one of the drug deals.
Firearms, Ammunition, and a Portion of the Drugs Sold by CROCCO
On July 24, 2024, law enforcement executed a search warrant at CROCCO’s residence and recovered additional narcotics, drug paraphernalia, and ammunition. CROCCO had previously been convicted of multiple felony offenses that made it illegal for him to possess a firearm, including voluntary manslaughter. At the time he committed these offenses, CROCCO was on supervised release following a prior federal bank robbery conviction.
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In addition to the prison term, CROCCO, 49, of Poughkeepsie, New York, was sentenced to three years of supervised release and ordered to forfeit all of the firearms and ammunition involved in the offense.
Mr. Clayton praised the outstanding investigative work of the Bureau of Alcohol, Tobacco, Firearms and Explosives, the New York State Police, and the City of Poughkeepsie Police Department.
The case is being handled by the Office’s White Plains Division. Assistant U.S. Attorneys Benjamin Levander, Reyhan Watson, and Benjamin Klein are in charge of the prosecution, with assistance from Paralegal Specialist Samantha Olsen.
New Rochelle Man Sentenced to 37 Months in Prison for Fraudulently Obtaining Social Security Benefits and Tax EvasionRead the Press Release
United States Attorney for the Southern District of New York, Jay Clayton, announced that JAMES PAVLOUNIS was sentenced today to 37 months in prison for perpetrating a 12-year scheme to defraud the Social Security Administration and obtain disability benefits to which he was not entitled, and causing his valet parking service business to evade paying corporate income taxes for five years. In September 2025, PAVLOUNIS pled guilty before U.S. District Judge Philip M. Halpern, who imposed today’s sentence.
“James Pavlounis stole hundreds of thousands of dollars from a government program meant to support those truly in need, while also evading taxes through his business,” said U.S. Attorney Jay Clayton. “Programs like Social Security depend on honesty, and tax obligations fund essential services that New Yorkers rely on. Those who exploit these systems for personal gain will be held accountable.”
According to the Indictment and statements made in public court proceedings and filings:
From January 2013 through March 2025, PAVLOUNIS obtained approximately $646,370 in Social Security benefits by providing false information to the Social Security Administration. He claimed he was too disabled to support himself and failed to disclose he was receiving hundreds of thousands of dollars from the operation of valet parking service businesses.
Further, from January 2018 through December 2022, PAVLOUNIS evaded the collection of the taxes of Select Parking Systems Inc. (“SPS”), one of the valet parking service businesses, due for the years 2017 through 2021, by making it appear that he was not operating SPS, concealing the income he was earning from SPS from the Internal Revenue Service (“IRS”), and making it appear that SPS was not profitable. Through this scheme, PAVLOUNIS caused SPS to evade payment of approximately $248,810 in taxes.
PAVLOUNIS perpetrated the scheme by, among other things: having a family member named as the owner of SPS; paying for his personal expenses using money from SPS’s business bank account; failing to inform SPS’s tax return preparer (the “Preparer”) that he was paying his personal expenses using money from SPS’s bank account; not filing his own individual income tax returns with the IRS, thereby not reporting any individual income; providing ledgers to the Preparer and representing that they contained SPS’s expenses for renting parking lots when there were no such expenses (the “False Ledgers”); causing the Preparer to falsely report on SPS’s corporate income tax returns that SPS paid a total of $1,054,204 in expenses for renting parking lots over the years 2017 through 2021; falsely representing, during a meeting with IRS Special Agents that all the information contained on SPS’s tax returns for 2017 through 2021 was true and correct and that reported rental expenses were amounts expended to rent parking lots where SPS valets parked cars for valet customers; and, producing the False Ledgers in response to a grand jury subpoena.
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In addition to the prison term, PAVLOUNIS, 62, of New Rochelle, New York, was sentenced to three years of supervised release and ordered to pay restitution of approximately $895,180 and forfeiture of approximately $646,370.
Mr. Clayton praised the outstanding investigative work of the Social Security Administration Office of Inspector General and the Internal Revenue Service-Criminal Investigation.
This case is being handled by the Office’s White Plains Division. Assistant United States Attorney Margery Feinzig is in charge of the prosecution.
Manhattan Man Charged with Trafficking Fentanyl That Killed A VictimRead the Press Release
United States Attorney for the Southern District of New York, Jay Clayton, Northeast Regional Associate Chief of Operations of the Drug Enforcement Administration (“DEA”), Frank A. Tarentino III, and Commissioner of the New York City Police Department (“NYPD”), Jessica S. Tisch, announced today the unsealing of an Indictment charging ADAM SLOAN, a/k/a “Slug,” with distribution of narcotics resulting in death in connection with the July 15, 2025, fentanyl overdose death of a resident of New York, New York. The case has been assigned to U.S. District Judge Lewis A. Kaplan.
“As alleged, Adam Sloan sold fentanyl to a victim in Manhattan, causing his death,” said U.S. Attorney Jay Clayton. “Fentanyl is an extraordinarily dangerous drug that has no place in the streets of New York. When drug dealers sell fentanyl, the cost is paid in human lives. Together with the DEA, the NYPD, and our other law enforcement partners, the women and men of the SDNY will fight for these victims and hold killers accountable.”
“While fentanyl remains the greatest drug threat this nation has ever faced, the greatest danger comes from the individuals who continue to push this poison into our communities,” said DEA New York Task Force Division Special Agent in Charge Christopher Roberts. “Today’s indictment sends a clear message to those threatening our families. We will find you; and we will bring you to justice. The DEA remains relentless in ensuring justice is delivered to the families who have lost loved ones to this drug epidemic.”
“The defendant showed zero regard for life when he allegedly sold a lethal amount of fentanyl to a New Yorker who was trying to turn his life around—and now a family is left grieving that loss,” said NYPD Commissioner Jessica S. Tisch. “We know how dangerous even the smallest trace of this poison can be, and we will continue to hold accountable any drug peddler who carelessly puts our communities at risk. I thank our NYPD investigators, our partners at the DEA, and the U.S. Attorney’s Office for their continued commitment to keeping our streets safe.”
According to the allegations contained in the Indictment and statements made in public court proceedings:
On July 15, 2025, SLOAN sold fentanyl to a Manhattan man, killing him.
This was not the victim’s first overdose. In October 2024, after suffering a nonfatal overdose, the victim tried to turn his life around by entering inpatient drug treatment and keeping handwritten notes to try to avoid relapse.
When the victim ultimately relapsed, however, SLOAN was ready and willing to sell fentanyl to the victim. On the evening of July 15, 2025, the victim and the defendant arranged to meet. Surveillance video footage likewise shows that the victim and the defendant left their respective homes, walked towards one another for the meeting, and then returned to their respective homes. After consuming the fentanyl that SLOAN had sold him, the victim suffered a fatal overdose.
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SLOAN, 44, of New York, New York, is charged with one count of distribution of narcotics resulting in death, which carries 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 NYPD.
This case is being handled by the Office’s Narcotics Unit. Assistant U.S. Attorney James Mandilk is in charge of the prosecution.
The charge contained in the Indictment is merely an accusation, and the defendant is presumed innocent unless and until proven guilty.
Former High School Teacher Sentenced to 13 Years in Prison for Coercing Minors to Produce Child Sexual Abuse MaterialRead the Press Release
United States Attorney for the Southern District of New York, Jay Clayton, announced today that KOSTAS FEKKAS, a/k/a “Constantine Fekkas,” a/k/a “C.J. Justice,” was sentenced to 13 years in prison by U.S. District Judge Cathy Seibel for coercing and enticing two minors to send him sexually explicit images and videos of themselves. FEKKAS previously pled guilty on September 5, 2025, before Judge Seibel.
“Teachers are entrusted with the safety, mentorship, and care of our children,” said U.S. Attorney Jay Clayton. “Instead of keeping them safe, Kostas Fekkas coerced a 12-year-old girl and a 16-year-old teenager into sending him sexually explicit photographs and video of themselves. Today’s 13-year sentence reflects the seriousness of that betrayal and the profound harm caused to these victims. This Office will never stop aggressively pursuing predators who sexually exploit our city’s children. If you suspect sexual exploitation, please reach out to our law enforcement partners.”
According to documents filed in this case and statements made in related court proceedings:
In or about 2022, FEKKAS, coerced a 12-year-old girl (“Victim-1”) to send him sexually explicit photographs and video of herself via Snapchat. When law enforcement searched FEKKAS’s cellphone in March 2023, they found a video of Victim-1 masturbating, along with still shots taken of the same video. Additionally, from October 2022 through September 2023, FEKKAS engaged in sexually explicit text-message conversations with a 16-year-old teenager (“Victim-2”) and coerced and enticed her to send him photographs and video of herself engaging in sexually explicit activity, which Victim-2 sent to FEKKAS.
Any individuals with information concerning the sexual exploitation of children are asked to contact Homeland Security Investigations through its toll-free Tip Line at 1-866-DHS-2423 or by completing its online tip form. Both are staffed around the clock by investigators. From outside the U.S. and Canada, callers should dial 802-872-6199. Hearing-impaired users can call TTY 802-872-6196.
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In addition to the prison term, FEKKAS, 36, of Hartsdale, New York, was sentenced to 10 years of supervised release.
Mr. Clayton praised the efforts of HSI and the Rockland County District Attorney’s Office.
This case is being handled by the Office’s White Plains Division. Assistant U.S. Attorney Timothy Ly is in charge of the prosecution.
Florida Man Sentenced to Five Years for Orchestrating Multimillion-Dollar Medicare Billing Fraud SchemeRead the Press Release
United States Attorney for the Southern District of New York, Jay Clayton, announced today that TED ALBIN was sentenced to five years in prison for his role in orchestrating a multimillion-dollar Medicare fraud scheme. The defendant was convicted on June 24, 2025, following a 12-day jury trial before U.S. District Judge John G. Koeltl, who imposed today’s sentence.
“Ted Albin used fraudulent prescriptions to cheat Medicare out of millions,” said U.S. Attorney Jay Clayton. “Schemes like this cost every New Yorker, including by driving up healthcare costs and diverting resources from seniors and the disabled who need care. Today’s sentence makes clear that those who cheat Medicare will face serious consequences.”
According to court documents, statements made in court, and evidence presented at trial:
From approximately 2016 through April 2021, ALBIN operated Grapevine Professional Services (“Grapevine”), a medical billing company, which he used to submit fraudulent reimbursement claims for durable medical equipment (“DME”), including back braces, knee braces, wrist braces, and shoulder braces. ALBIN submitted thousands of fraudulent claims on behalf of DME supply companies that had engaged Grapevine for its billing services, including multiple DME supply companies owned and controlled by ALBIN and his sister, Erin Foley. ALBIN’s fraudulent claims were based on prescriptions for DME which he knew had been illegally purchased with kickbacks paid by the DME supply companies. Many of the kickback-tainted prescriptions billed by ALBIN were generated with forged doctor’s signatures and without regard to the medical need of the patients for whom braces had been prescribed. ALBIN knew of the fraudulent nature of the claims he submitted to Medicare and nonetheless continued to submit such claims, over and over, for years. In total, the DME companies for which ALBIN submitted claims billed Medicare for over $38 million, on which Medicare paid out over $12 million.
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In addition to the prison term, ALBIN, 49, of Stuart, Florida, was sentenced to three years of supervised release. The Court deferred the calculation of restitution until a later date.
Mr. Clayton praised the outstanding investigative work of the U.S. Department of Health and Human Services – Office of Inspector General.
This case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys William Kinder, Jackie Delligatti, Brandon Thompson, and Ryan Finkel are in charge of the prosecution.